I. Company background The group started as a small vermicelli factory in Tasek Gelugor in 1984 under the name of Bersatu Kilang Bihun. On 15 September 1988, in order to corporatize the business for future expansion purposes, Kilang Bihun Bersatu Sdn Bhd was incorporated to take over the business of Bersatu Kilang Bihun. With ever increasing demand for vermicelli and later instant noodles, KRB Group diversified into manufacturing and marketing of all types of rice and sago sticks (vermicelli). The company's growth mirrored the demands of a growing segment of the middle and lower income class consumers. In 2004, the company was listed on the Kuala Lumpur stock exchange. KBB currently commands about 60 per cent share of the vermicelli industry in Malaysia, making it a clear market leader (Kok, 2013). The company has a capacity to produce up to huge volumes of vermicelli products, while other vermicelli starch ingredients such as baking powder, bicarbonate of soda, and plain flour are packaged in various sizes according to the wholesalers and retailers demand. Budget committee controls each business unit's operation by setting budgets that limit how much each business unit can spend on production and marketing. These budgets focus on controlling costs and increasing efficiency. Marketing department controls the pricing and promotion of products. Standard operating procedures prescribe that each business unit should follow a standard practice for personnel evaluations. The KBB Group has a functional organization structure. Departments perform separate business functions such as production, marketing, accounting/finance for each of the strategic business units, and a department at the head office for the export affairs (Figure 1). Budget committee prepares monthly budgets for the capacity utilization, prices, raw material supplies, overheads, and financing requirements. 1.1 Internationalization During the 1990s, the Asian markets provided significant expansion opportunities to Malaysian companies due to trade liberalization measures adopted by a number of