Shah Flavor SWOT Essay
Shah Flavor SWOT
ES Fusion Enterprise (ES Fusion) is one of the companies that monitor by Small and Medium Enterprise (SME). The name of their product is a Shah Flavor Char Kuey Teow. This company located at Plot 8, Jalan Ep5, Melaka Halal Hub Serkam, 77300 Serkam Jasin, Melaka. The owner of this company is Mr. Mohamed Shaharini Bin Abdul Ghani. In Shah Flavor Char Kuey Teow production, Mr. Shaharini use the good quality of oyster sauce and fish sauce. Beside that, ES Fusion also gets the certification from Jabatan Islam Malaysia (JAKIM) for their main product based on food industries is Char Kuey Teow.
ES Fusion was established on 15 January 2010 by issuing food product legitimate under the brand Syah Flavor that more focus on Sos Char Kuey Teow .The capital for starting a business Mr. Shaharini only uses the family capital and also using his own money to start their business, the capital as much as RM8, 000 to buy the raw material and also equipment to make the Char Kuey Teow sauce. In the beginning, Mr. Shaharini was working as a chef in a five star Hotel in Kuala Lumpur and that is the reason why her interest in cooking area, eventually Mr. Shaharini start her Char Kuey Teow sauce business based on the concept of inherited family recipes.
For the start business, ES Fusion uses a traditional way or manual to cook the Char Kuey Teow sauces. The traditional way Mr. Shaharini must hire several people to produce the sauce and the quality of the sauce is more low because they can not make are more sauce then will give impact on demand from customers. Besides that, they must work early in the morning to start their work in processing the Char Kuey Teow Sauce. In this time, Mr. Shaharini embark their business with only sell on a small scale of their Char Kuey Teow Sauce in the market and its more to demand or order by the customer than they will produce the sauce.
After several years dabbling work as a chef in the hotel and learn more about the recipe of sauce, Mr. Shaharini feel confident and afford to extend this sauce into the big market. So, he applies capital grant from SME Corp to buy machine that can improve their production of making the sauce. Mr. Shaharini get loans as much RM20, 000 from SME Bank for their first application. With this help, En. Shaharini had purchased grinder machine, filter machine and other equipment to make the sauce. By using this machine it can help Mr. Shaharini to make sure their operation becomes easier.
In the startup business, En. Shaharini start began by selling Char Kuey Teow at the night market and the growing demand, Mr. Shaharini has expanded its business by using the brand name of the Shah Flavor sauce. En. Shaharini also have been a good relationship with government sector Perladang and Pertanian where En. Shaharini indeed committee members under this government.
In addition, get assistance from SME Corp, ES Fusion also received recognition from the Kementerian Pertanian dan Industri Asas Tani (MOA). Under the MOA, they have got the additional assistance in term of financial aspects which aims to get as many materials and improve their factories. In addition, they also get and work under Halal Hub Malaysia. In halal Hub Malaysia, location of company ES Fusion has been Plot 8, Jalan Ep5, Melaka Halal Hub Serkam, 77300 Serkam Jasin, Melaka. This site is the new branch for Shah Flavor food industries.
2.0 Product Specification
3.0 SWOT analysis (Internal and External analysis)
SWOT analysis is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. SWOT is a basic, straightforward model that assesses what an organization can and cannot do
as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal namely strength and weaknesses and external issues namely opportunities and threats. STRENGTHS
Focused on one product only
The main product of ES FUSION is char kuey Teow sauce. The char kuey Teow sauces by ES FUSION are divided into three size namely sauce in 5 liter, 750 ml, and the smaller are 360ml. The recipe of the sauce comes from their uncle. ES FUSION make it as their secret recipes for their company. ES FUSION only focuses on produce the char kuey Teow sauce, so their owner can make sure the quality of the sauce is good and can fulfill the demand of customers. 10 years experience as chief
The another strengths of ES FUSION is their owner have 10 years experience as chef. Before starting their business Mr. Shah works at the hotel as a chef. It is because, before he study in culinary at a private college. Based on their experience in the food industries ES FUSION wants to start- up their own business because they have expertise in this field. Good relationship with supplier
Good relationship with supplier also one of their strengths. It is because if the company have the good relationship with their supplier it can be easier for them to get the raw material from them. Besides, when ES FUSION had the best relationship with a supplier they can get the best price from suppliers. The main supplier that always provides raw material is one wholesaler that located at Kampung Jawa, Malacca.
ES FUSION in joint collaboration with strategic partner ES FUSION also in joint collaboration with strategic partner namely PELADANG and PERTANIAN. In joint collaboration it is can be the one advantage to ES FUSION because PELADANG and PERTANIAN is one of the government sector. The owner of ES FUSION namely Mr. Shah has a good relationship with PELADANG and PERTANIAN. It is because, Mr. Shah is one of the members in PELADANG. So from that, he can get many benefits like to get more support, consultation
and many more from them. HALAL certification
ES FUSION is totally a hundred percent owned by Bumiputera. Besides that, the company also gets the certification of authentication halal from the Islamic religious department of Melaka, Malaysia. WEAKNESSES
Poor in finance and management
One of the weaknesses of ES FUSION is poor in finance and management. ES FUSION only owned by one owner namely Mohd Shaharini bin Abdul Ghani and only work by itself without employee to help him. For their finance they don’t have any proper account. FUSION only writes their account on the log book and on their white board to remind her about the debt, income and outcome. Packaging not interest
Packaging also can be weaknesses in their company because the packaging is not interested and then cannot attract intention of customers. Packaging and labeling of ES FUSION sauce is very crowded with their own picture, recipes and many more. Besides, the label of the sauce is very small and it can make customer difficult to identify their source. Less systematic layout of factory
ES FUSION also has a problem with the layout of the factory. The layout of the factory is less systematic. It is because, their owner only puts all of things like their sauce, raw materials, assets and others in one place. An example, ES FUSION doesn’t separate their sauces that already want to sell with the raw material that want to make the sauce, so the places seem like messy and not systematic. Lack of manpower
The one of the big weaknesses of ES FUSION is lack of manpower. It is because they not hire any employee to work with her. All of the work in the company/ factory only doing by their owner itself. From get the raw material into becoming output they only do it and for the marketing and delivery also do by the owner itself. OPPORTUNITIES
Help form government sector (PELADANG and PERTANIAN)
One of the opportunities that ES FUSION gets if from the government sector namely PELADANG and PERTANIAN. When ES FUSION gets the help form government sector it is can be easier to ES FUSION to do improvement to their company. Market wide in Malaysia
As we all know the market for food in Malaysia is big. So, the one opportunities for ES FUCION is their char kuey Teow sauce is easy to use and it is suitable to housewife that not have enough time to spend their time in the kitchen. Besides that it also suitable for customers that like char kuey Teow and hard to get it, with the sauce they can only cook at home with ease. THREAT
As we all know ES FUSION is still new in market of char kuey Teow sauce. Because it is the new product and new in the market the acceptance of the product is still less because of less of promotion and others.
High transportation cost
One of threat that ES FUSION faced is the high transportation cost. It is because, ES FUSION delivers their stock of the sauce itself. If any company or person that want their products ES FUSION will deliver to them. So, it is must use the many cost of transportation like TOL, fuel and many more. It is can be proved by rising of oil prices were started on 3 September 2013, the price will be increase 20cent per letter. This situation also can give the effect to the company itself. The uncertain of raw material prices
As we all know the price of raw material is uncertainty. So, it is can become the threat to ES FUSION. The raw material that ES FUSION always uses to produce their product is oyster sauce, fish sauce and many more. Competitors
The main threat that all companies faced is about the competitor. The main competitor to an ES FUSION company is Jai Char Kuey Teow and 2 Puteri. The both of the company also produce the same product like ES FUSION but in the different way. Jai Char Kuey Teow is one product that manufactured by Huzmy Entreprise. Jai Char kuey Teow only produces 5 litter sauce. 2Puteri is one brand under RM Ninetysixbillion Entreprise Company. 2Puteri not focus on char kuey Teow sauce but only produce Chili Boh. 2puteri Char kuey Teow sauce only produces the sauce in 350g.
For ES Fusion Enterprise (ES Fusion) companies they are the sole manufacturer of Char Kuey Teow in Malacca. Therefore, they do not have competitors in Malacca where they have competitors outside its The Jai Char Kuey Teow and 2 Puteri Char Kuey Teow. Both of these companies produce seasoning or sauce Char Kuey Teow like Syah Flavor the product by ES Fusion Enterprise (ES Fusion) company but they have a significant distinction between one another of the aspects is a: 1. Productai Char Kuey Teow Jai Char Kuey Teow is 100% indigenous products and it is food heritage.
This product is manufactured by Huzmy Enterprise and has been in the market for 3 years in Malaysia. The enterprise Huzmy company now one step forward by issuing booth concept simple, fast and delicious. A business who’s who highlighted the franchise concept, a new concept where the main ingredient they use is Kuey Teow.
The more important for the Jai Char Kuey Teow they just sell the sauce Char Kuey Teow by package that means by franchise. If someone wants to start the Char Kuey Teow business they can come into Huzmy Enterprise, so under this company they will start the business Char Kuey Teow under the brand Jai Char Kuey Teow. Cooking techniques and management guidance will be given to anyone who would like to run this business under brand Jai Char Kuey Teow. Under this franchise, anyone can join and take the more advantages given from them, it: No Franchise Fees ( Business only franchise concept ) .
100 % manufactured by Bumiputera ( Huzmy Enterprise )
Products that are based on the concept of mobile kiosks and easy install ( which can be brought to the Expo , Bazaar Ramadhan , Stadium , Carnival and Night Market pleased arranged anywhere . Businesses are concerned about hygiene and product quality is assured. Kiosk quality stainless ( 100 % stainless steel )
Product of Malaysia’s first franchise concept that is based on Kuey Teow Mee Easy to get raw materials ( around grocery stores and mini-markets ) Other special product from other heritage and savor a delicious meal . Cooking techniques and management will be given guidance from Huzmy Enterprise to generate and guide entrepreneurs. Dealing in full (full -time) or part-time ( part-time )
Own business and no pressure from employers
High profit margin !
Low -risk business and competitiveness.
Business concept Simple, Quick and Tasty .
Then for the package provided by Huzmy Enterprise is a:
For Sauce Bottles 5 Litter (35 servings) = RM34.50
Cost & Profit Dealer :
1 BOTTLE SOS = RM34.50 + RM33.00 = wet material capital
TOTAL = RM67.50
35 plate X Minimum Price RM4.00 = RM140.00 (Sales 1 plate)
35 plates X RM6.00 = RM210.00 MAXIMUM PRICE (Sales 1 plate)
(SPECIAL EYES + EGGS)
Minimum Profit 100%
Maximum Profit 150%
2 Puteri Char Kuey Teow
RM Ninetysixbillion Enterprise company was established on July 27, 2010 with the issue of food products under the brand of 2 Puteri. Products are Sauce Char Kuey Teow 2 Puteri and Chili Boh Natural 2 Puteri. Sauce Char Kuey Teow 2 Puteri is one of the RM Ninetysixbillion Enterprise company’s products provide an alternative for fans Penang Char Kuey Teow to get a more satisfying meal taste all of people buy this product. Satisfied, self-produced and satisfied because its taste meets their fancy. The price is also cheap and worthwhile purchase. The product sauce Char Kuey Teow by 2 Puteri also has the Halal certification from Jakim that’s very important to make sure their product Halal and clear to eat. 2 Puteri have 2 product sauce Char Kuey Teow and Chili Boh but they mostly focus on Chili Boh, the sauce still new.
Now Sauce Char Kuey Teow 2 Puteri has 34 branches penetrate Tesco Stores Malaysia is divided Store ‘Produk Malaysia Citarasa Kita’ and 10 Mydin Hypermarket branches and the inner Sauce Agrobazaar. Sauce Char Kuey Teow 2 Puteri not only delicious but also made Char Kuey Teow be applied to the other dishes like Mee Goreng, pasta, fish, and can be eaten alone. In 2013, they produce large size of the product Char Kuey Teow 2 Puteri for users who open a restaurant or tavern to get Char Kuey Teow 2 Puteri.
New bottles for Char Kuey Teow 2 Puteri
4.1 Competitor Analysis
Jai Char Kuey Teow just has one product for the their sauce its just for 5 Liter then for their product is are more to franchise business not just sell the sauce. So if any person want start up business Char Kuey Teow they can use the Jai Char Kuey Teow, they will have the package by Jai and the special sauce by Jai brand.
2 Puteri a new brand Char Kuey Teow and Chili Boh, so they still in process and make are more improvement and also innovating to make sure their product suitable to demand from their customers. The product by 2 Puteri is a 350 ml and just one not produce many kinds of sauce because they are just new and still to improve their production of sauce.
The more interesting for Syah Flavor compare to their competitors, Shah Flavor have many types of their packaging of their sauce Char Kuey Teow. Syah Flavor has 2 types of sauce its 360 ml, 750 ml and 5 Liter, this suitable for all generations if their just a use a litter of sauce so they can buy for the 360 ml. From this, the Syah Flavor very interesting so customer can make more choice depends on their use of the product, they can buy 360 ml and vice versa.