Analysis Of Hwa Tai Industry Bhd

Hwa Tai Industry Bhd was established in 1962 and listed one the Stock Exchange in 1992. Since, we are the first and longest biscuit manufacture industry in Malaysia and focused on to ensure produce and maintenance a best premium quality of biscuits. There are two type of brand name of biscuit which are “HWA TAI” , “LUXURY”, “PALMER’S” and “LUCIA” under marketed.

There are more than 50 years of the manufacturing experience that we have and have the possible ability to manage our value chain by purchase of raw material to produce the finished product. Our high quality product and creation of improvement have firmly entrenched in Malaysia and also over 50 countries around the global. Nowadays, Hwa Tai industry Bhd have offered about 100 varieties of biscuit and cake by provide the best quality.

The Impending election from the government have giving more offer and benefit for the people who is under their condition will freely giving subventions to them purchase the necessary. Hwa Tai may will increase the sales during the impending election.

Free trade

Hwa Tai is exported about 50 country around the worlds, which government is stated free trade with other country, Hwa Tai may be threaten and benefit by them. Other industry from other country may import cheaper product to our country , people may will choosing the cheaper one, Hwa Tai sales profit may goes down while Hwa Tai can also export their product selling in other country easily to get more profit.

Halal Certificated System

According to Abdulaziz, 2010 says that Malaysia is made of different religions, races and cultures and this is important thing in the development of the Halal Malaysia certification. The word ‘halal’ is not the sole property of Muslims but has expanded internationally with trading communities embracing it. Hwa Tai step on apply the Halal certification to respect and gain more customer not only in Malaysia and also the Muslim country.

Malaysia Food Safety Act

Hwa Tai have obtained the HACCP certification, a testament to its efforts in achieving the highest standards in food hygiene safety and quality. In order, customer will be more confident in purchasing Hwa Tai product.

2.1.2

Economic

Inflation

The inflation of the industry, the flour price if it is growing up, the profit of Hwa Tai will goes down. If the profit will not turn up, Hwa Tai may increases the price goes up, while people may not willing to purchase the product.

Taxation rate

Government claim that if company who is largely using technology in producing their product may reduce the tax that they need to pay. Hwa Tai Bhd can using more technology in producing their own product which is benefit in paying less taxation by saving more expenses.

National Income Level

The Gross Domestic Product (GDP) in Malaysia expanded 5.20 percent in the third quarter of 2012 over the same quarter of the previous year. National income level up and down will affect people have the ability in purchasing power, when income level go up , Hwa Tai may also increase in profit they get and vice versus.

Unemployment Rate

Unemployment Rate in Malaysia remained unchanged at 3.20 percent in October of 2012 from 3.20 percent in September of 2012. While unemployment problem making people don’t have constantly income to purchase unnecessary confectionary like biscuit.

2.1.3 Social

Health Conscious

Nowadays, people may getting more caring about their healthiness issue when choosing buying the healthy product. People may concern and wanted the material production of sugar, oil and carbohydrate level in using whether will affect their healthy or not. If Hwa Tai do not make any change it may decrease the customer interest on buying their product. Hwa Tai can make the oat meal and cereal inside the biscuit to make it healthier.

Organic

Organic product is normally related to health, because it have the standard cover with the aspect of food product, animal welfare ,wildlife conservation, to food processing and packaging. Consumer are more interest in purchase organic product when giving the choice to them, Hwa Tai could making some improvement in changing some of their material to produce the organic biscuit.

Outgoing activity

People will likely to have the product which is easy to purchase when their having some activity, for example the cinema could be selling some snack to bringing it when they watching and airline can also provide the biscuit to the customer who is in long way journey.

2.1.4 Technology

Transportation

By using better technology can helping Hwa Tai in transporting order product from supplier be more efficiency and more accurately would easily make any mistake. It helping reduce the unnecessary cost and risk if that is making the wrong order with other supplier.

Advertising

Advance in using technology in advertising can create a strong brand awareness and reputation for the company. Hwa Tai may use advertise through media like TV, Radio, Magazine and more to capture people’s sight and vision.

Machinery equipment

By using better quality of machinery equipment it can be producing product in faster way and saving some unnecessary cost like labor cost. By using machinery equipment Hwa Tai can create a better looking packaging in order to attractive and get interest more customer to purchase our product.

2.1.4 Environment

Global Warming

The global warming issue looks serious day by day, people nowadays are advocate recycle. If Hwa Tai are produce the product packaging if can be recycle or easily to be corrosion people are more willing to purchase it through the environment issue.

Product reuse

People are more liking in demand on the left over of the packaging can be reusing again, for example the aluminum box can use to storage something. It does not harmful and destroys the peaceful of the environment. If Hwa Tai creating in new way in using better quality of packaging by educate them in reuse in new way from the product packaging will build the reputation of the company.

Safety Production Way

People are concern about the production is it produce the product in legal way , by discharge the waste water and gas in the legal and humane way do not harmful the environment, Hwa Tai can educate about how they produce their product in building good impression on their brand.