Satory Malaysia Food & Beverage is the Malaysian subsidiary of a big Japanese keiretsu, Satori Kohei, which has its core business in the food and beverage sector. Satory Malaysia— which only deals in dairy products, prepared food and soft drinks—is a medium-sized company based in Johor Baru, with a secondary plant in Singapore. It employs about 50,000 people across the two locations. The company has faced some difficult times due to the global economic crisis and, to address the declining profit, has decided to diversify its core business.

a. What types of strategic plans should Satory Malaysia make, and in which sectors should it consider expanding its activity?

b. What environmental forces should Satory Malaysia consider before making its decisions?

c. What are the core competencies of Satory that are going to affect its plans?