YTL & Proton

YTL & Proton

The Star had a more amusing front-page in the StarBiz today - it parade two corporation; extremely contrasting corporations; both gaints in their own model and structures; both having far different strategy and mission; and, but, both have a same vision - to be a global institution and to make profit!

It is none other than YTL and Proton; the two institution which can be considered as multi-national corporation, having vast business overseas, and both had strive to compete heads on with international corporation, seeking new markets in order to sustain their growth, and to keep profits flowing in.

In the news, it paraded - YTL is buying into Singapore and China via the proposed acquisition of a 21% stake in Jurong Cement Ltd (JCL).

Below this article, the paper proclaimed - Proton committed to improve results after weak Q1.

What contrasting news! One is looking into diversification; horizontal and verticle diversification, expansion, and value enhancement. The other is busy striving to plug their leaking pockets, looking into how to improve the company's performance after a disasterous first quarter ended June 30. Proton said that they had drawn up an appropriate measure to address issues that contributed to its shortfalls.

"Management expects and is fully committed to implement these and other measures over the next three quarters."

It's a bit of funny feelings for me .... management of Proton wants to inform you that they are fully committed to improve ... I thought that goes without saying. Otherwise, the management should be sack; they are employed to do just that, that is, committed to make profits; that's what shareholders expects without the need of reminder and assurances.

What is important is after a dismal result, shareholders don't need assurances of management commitment. Shareholders need assurances that the profits shall be assured so that dividends are assured. They need to know what are the strategies employed that could tangibly translate the balance sheet into positive results and they want to know the strategic plan that can ensure the corporation can achieve sustainable growth and continuous profit.

That's the difference between the two news! One is looking and taking actions to enhance value, increase profit and ensure sustainable growth of revenue and profits. The other is calling shareholders to be patient, telling them not to worry as the management is looking into ways of how to improve, and assuring it will be done as they are commmitted.

You see the difference? Can you see two types of management? One is management by objectives, the other, is management by assurances. God bless both of them.