Pest Secret Recipe Essay Example
Pest Secret Recipe Essay Example

Pest Secret Recipe Essay Example

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  • Pages: 3 (792 words)
  • Published: November 29, 2016
  • Type: Case Study
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Malaysia is a multi-racial country and there are around 55% of the population are Malays. In order to serve Islam market, Halal certification is required for food retail industry. In Malaysia, Halal certification can be obtained from the Department of Islamic Development Malaysia (JAKIM 2011). The Halal Food scheme are covered by the production, preparation, handling and storage of the food that will be serve and will be monitor by the JAKIM committee.

According to Malaysia’s Law (Employees’ Provident Fund Act 1991), which we call it as (EPF) is a compulsory contributory of their sfor all employers and employee to contribute to the fund at the rates of 11% for employee and 12% for employer (Kumpulan Wang Simpanan Pekerja 2011) respectively on their monthly wages. Employer and emp


loyee of Secret Recipe need to contribute their monthly wages to EPF and they will receive their EPF fund in full at the age of 55 years old.

Economic forces According to Malaysian Institute of Economic Research (MIER 2011), Malaysia’s GDP is expected to have a moderate 5. % growth in 2011 which decreased from previous year 7. 2% in 2010. It is estimated that Services industry like Secret Recipe to have 5. 9% growth in 2011 which is lower compare to 2010, 6. 8%. The inflation of Malaysia could be double to 3. 5% this year and currently hitting 3% said by Bank Negara Malaysia. Malaysia is currently trapped in “middle income trap” which a country gets stuck at a relatively comfortable level of income but cannot seem to take the next leap to developed nation status. The global economic status went deterioration

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in the Europe and U.

S had brought an impact to Asia country like Malaysia to reach depression which soon leads to recession. On March 25, 2011 Bank Negara of Malaysia says that Malaysia is not heading for recession and there will be positive growth for all major economics. Once again the assistant governor of Bank Negara Malaysia (BNM) Dr. Sukhdave Singh made another statement “Overall the world had a very good bounce back from a difficult year in 2010. You will hear that we are heading for recession, this isn’t true. ”

Due to global economy run down and raising of inflation that can’t cope with income level, Malaysia who is already living on an overstretched budget had to add on more burden to their living expenses. *** Social/ Cultural forces Eating is considered as an obsession for many Malaysian regardless of their races or age. In this multi ethnic country, there a lot traditional food that brought up by different races in Malaysia and the social influence from the global. Malaysian love to eat and they spend a lot in eating, that’s the culture of Malaysia.

The expansion of shopping mall, supermarket and supercenter had brought more opportunities to service industry. Consumer are spending more time in different retail outlets, create opportunities for food service retail industry. Technological forces Consumers especially generation “Y” are more likely to enjoy and expecting good service quality from food service retail industry due to the media and internet that keen promote food through advertisement or TV Show, which brought up the contrast effect to them.

Consumer now able to check out the review

of the food service retail industry easily through internet and the level of influence of internet had raise among the generation “Y”. Another important aspect to be considered for current technological forces is the availability of WIFI in food service retail industry. Everyone want to get connected, even during meal, consumer often looking for free WIFI service from food service retail industry and it is one of the crucial factor beside foods quality, price and services.

Competitive forces The emerging of food service retail industry had increase the competition ntensity. More and more oversea success franchise food service emerging, usually operate under same roof in a supermarket/ shopping mall or supercenter. That gave a lot option to consumer to choose when having meal, retailer have to compete with each other by offering quality yet affordable foods to consumer or even gain attraction from advertisement/ promotion. Secret Recipe is running under monopolistic market structure where they sell products that are differentiated from one another. E. g. Marshmallow Cheesecake - which rarely to be found in others competitors outlet.

Secret Recipe is facing intratype competition (Starbucks, Coffee Bean& Tea Leaf, Gloria Jean’s Coffees) and intertype competition (Tesco, Jusco, 7-Eleven) which is easy found in Klang Valley area thus create a intensive competition environment for Secret Recipe to compete with. Recently, food service retail industry frequent adopts specific time promotion e. g. lunch promotion / breakfast meal to attract crowd and target different segment of people. To maximize their profit, the trend for food service retail industry is to offer kids meal, because kids will bring their parents and it is like a bundle / package


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