Company Analysis of Old Chang Kee

Old Chang kee which is based in Singapore engaged in the fabrication and distribution of nutrient merchandises in Singapore, Malaysia and Republic of China. It is celebrated for its Curry Puff and subsequently diverse into every bit many as 30 merchandises which could be found in its web of mercantile establishments distributed around Singapore, Malaysia and Republic of China.

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Company History

The Beginning of Old Chang Kee dated back to 1956 which kick off in a little stall inside a java store located outside the former Rex Cinema along McKenzie Road. Crowd of people were attracted to the delightful pastry stuffed full of curried murphies, poulet, and a piece of egg and fried with several herbs and spices, which is called Curry Puff. Every single Curry Puffs were meticulously handmade to guarantee the olfactory property was locked within the Curry whiff. In 1986, Han Keen Juan take over the little bite store upon confronting weaving up and transport the vision to turn the bite store into a successful endeavor.

SWOT Analysis

Strength

Strategic location

The company owns more than 80 mercantile establishments around Singapore, Malaysia and Republic of China, of which 70 mercantile establishments are based in Singapore. The company market its scope of nutrient merchandises from booths along the route to supermarket mercantile establishments and shopping promenades at every corner of Singapore, therefore leting consumers to derive easy entree to its mercantile establishments.

Monetary value and Variety of Food merchandises

All merchandises of Old Chang Kee were priced between $ 1 to $ 2. The low-cost monetary value scope would even let kids every bit immature as seven to be able to afford to buy nutrient merchandises from the retail mercantile establishment. Keeping the monetary value affordable would besides welcome consumers who were still non full after their repast to buy any nutrient merchandises from the mercantile establishments.

The Company offer a scope of over 30 nutrient merchandises. It allows the consumers to hold the luxury to take over a scope of nutrient merchandises, beside their celebrated Curry Puff such as Sotong Onstik, Pineapple Pie, and Yam Cake. Therefore, it would be able to make out to many other consumers besides Curry Puff lover and at the same clip, the company would be able to increase its beginning of grosss and increase the group ‘s grosss.

Quality Control

The company is committed to keep high criterion and high degree of quality control to present nutrients which are safe to devour for our consumers

In the company ‘s production installation, the company had obtained HACCP enfranchisement for the fabrication of currying whiffs, get downing from managing of natural stuffs to processing, hive awaying and bringing of the merchandises. A series of quality control processs were implemented which relate to hygiene control, care of equipment, cleansing and sanitation, natural stuff control and merchandise quality control.

In the retail mercantile establishments, the employees had to undergo preparation which will fit them with food-handling, cookery and hygiene control. To keep the same criterion of the nutrient merchandises, the employee had to adhere to the cookery processs given to them in the signifier of operation manual.

Either A or B class were obtain by all the company ‘s nutrient mercantile establishments for nutrient hygiene and safety criterions.

Management of Retail Mercantile establishments

All of the retail mercantile establishments will be oversee and managed by Our General Manager, Chow Hui Shien who is assisted by a 10-man squad consisting of one director, executives and supervisor. The retail mercantile establishments are classified into five country groups based in their location. An country supervisor will pull off one specific country group and a care squad which has four members will execute regular care work and hygiene care for all the retail mercantile establishments. A squad leader is appointed in each retail mercantile establishments and their undertaking is to pull off the operation of the store and the employee in the store. Depending on the size and volume of each retail mercantile establishments, the employee counts for each store will run from two to eight employees who work either both displacements or individual displacement.

Fiscal Performance

The company gross shows a little addition from $ 24.8 million in first half twelvemonth 2009 to about $ 26.3 million in the first half of the twelvemonth 2010. The retail section is the chief subscriber with gross addition from $ 24 million in first half twelvemonth 2009 to $ 25.3 million in first half twelvemonth 2010. The company ‘s hard currency and hard currency equivalents sum to $ 8.7 million as at 30 June 2010. The entire assets of the company base at $ 24.807 million as compared to the entire liabilities of $ 6.616 million as at 30 June 2010. The entire equity of the company is $ 18.199 million. The figures reflect that the company has a healthy balance sheet.

Accreditations and Achievement

In 2004, the company had received the Halal enfranchisement by Majlis Ugama Islam Singapura which allows its concern to derive entry to the Muslim Community.

In 2004 and 2005, the Company was awarded “ Singapore Promising Awards ” , “ SPBA- Heritage Brand Award “ and the “ SPBA- Distinctive Brand Award “ by the Association of Small and Medium Enterprises Singapore and Lianhe Zaobao.

In 2007, the Company was Awarded “ Lifelong Learner Award Corporate Category ” by MediaCorp, Singapore Workforce Development Agency, National Trade and Unions Congress and Spring Singapore. May 2007-obtained Hazard Analysis Critical Control Point ( HACCP ) enfranchisement for the fabrication of curry whiffs and implement a quality confidence programme.

In 2009- Gross of the group surpassed $ 50 million.

Failing

Peoples and Service

The employee stationed in the nutrient mercantile establishments were normally middle-age, therefore it leave an feeling of veterans.

The company ‘s employees could be found mingling and chew the fating heartily among themselves even when there are long waiting lines around the store. These behaviors leave down a bad feeling to consumers in term of bad service.

Merchandises

Most of the nutrient merchandises from our mercantile establishments undergo deep-frying before selling to consumers. As for now, more people are being health-conscious, so they will normally abstain from oily nutrient.

Opportunities

Changing Lifestyle of Consumers

In a modernized and fast-paced Singapore, the life style of working grownups and stress-stricken pupils were so busy and feverish that they can merely turn to convenience nutrient or takeout to cut down the clip loss in eating as clip is ne’er plenty. Old Chang Kee is well-positioned to sit on the upwards tendency of convenience nutrient and takeouts with its Old Chang Kee Take 5 mercantile establishments and over 70 mercantile establishments well-positioned retail mercantile establishments in heartland, shopping promenades, booths and supermarket.

Business development

In Singapore, the company had besides moved into the nutrient bringing services called the “ Old Chang Kee Delivers ” . The bringing services cater to the consumers in the cardinal concern territory country and other selected country in Singapore. The purpose of the bringing service is to supply an added convenience to consumers and to offer an easy path to supply finger nutrient for event, meeting and parties.

Regional Expansion

Upon making impregnation point in Singapore, the company had ventured into abroad market and put up retail mercantile establishments through joint ventures, direct investing or franchise agreement. The company presently have three retail mercantile establishments in People Republic of China ( direct investing ) , Indonesia franchisee in Jakarta had four mercantile establishments, Philippines franchisee in Manila had two retail mercantile establishments and in Associated Company ( Old Chang Kee Malaysia ) had two retail mercantile establishments in Kuala Lumpur.

Menaces

Hazard Factor

The Company will be affected by any eruption of food-related diseases. In 2004, during the eruption of avian grippe, supplies of poulet meat and egg which are the ingredient in doing our curry whiffs had dropped drastically. Due to the deficit of supply to run into the demand, the monetary values of poulet meat and eggs were elevated, which increase the cost of natural stuffs of our company. The company had to bear with the extra disbursals as the company could non reassign the addition of cost in natural stuffs to the clients which greatly affected the fiscal public presentation of the company in 2004.

Due to the deterioration of the avian grippe, the authorities of Singapore wholly banned the import of poulet meat and egg from Malaysia. The Company have to replace fresh poulet meat with frozen poulet meat and the company ‘s nutrient merchandises were being served without egg. Therefore, it has greatly affected the gross revenues and gross of the fiscal twelvemonth of 2004.

Labour forces and salary

The nutrient and drink ( F & A ; B ) industry in Singapore is really competitory and labour intensifier. In Singapore, since there is a deficit of Manpower in the F & A ; B sector ; many companies will increase wages term to pull workers. The nutrient industry will prosecute in a price-bidding war, and ache the net incomes of the F & A ; B sector in the terminal.

Competition

The company had a twine of rivals who are Bengawan Solo, Breadtalk, Polar Puffs and Cake, Prima Deli and bakeshops and nutrient retails mercantile establishments near to our retail mercantile establishments. Those rivals have many retail mercantile establishments located island-wide. Thus the degree of fight will depend on factors such as nutrient pricing, gustatory sensation, stigmatization, hygiene criterions and widespread of nutrient merchandises.

Future of the Company

Expansion of bing abroad operation

Presently the company has established trade name presence in Indonesia and Philippines through franchisee in both of these two states as stated. The group had subordinates located in People democracy of China, three retail mercantile establishments in Chengdu and a hibernating one in Australia. The company program to open at least three more retail mercantile establishments in other parts of China such as Chongqing within the following one twelvemonth. Currently the company is sourcing for appropriate production installation in Australia and program to open at least two retail mercantile establishments in Australia. The company had put aside $ 1 million raised from net returns for the enlargement plan..

Increase and Refurnish Singapore retail mercantile establishment

Since the chief operation of Old Chang Kee is in Singapore and the fact that the chief beginnings of gross were besides generated from Singapore. The Company have to pay accent on the Singapore ‘s operation excessively. The company program to put up new retail mercantile establishments in strategic location which include Take 5 retail mercantile establishments and drive-through installations. The company hope to increase the figure of retail mercantile establishments by five in the following two old ages. The company program to relocated some of it hapless public presentation retail mercantile establishments to a better location to spur growing and at the same clip to refurnish some of its bing retail mercantile establishments to illume up the expression of Old Chang Kee. The company had put aside $ 1 million raised from net returns for the proposed program.

Expansion through strategic confederations, acquisitions, joint venture and franchises

Besides deriving popularity from Local, many aliens had give encouraging feedback on the merchandise of Old Chang Kee would love to see our company ‘s retail mercantile establishments in their place state excessively. Some people even have programs to discourse joint ventures with our company. The company will see the full above scenarios and had planned to take Old Chang Kee aboard through acquisitions, direct investing, joint venture and franchises. Net returns of $ 500,000 have been set aside for the program.

Contemplation

After finishing the analysis on Old Chang Kee, I felt that the stairss taken by Old Chang Kee in turning the company was planned really meticulously. The company focal point on its nucleus market and construct up its strong presence and stigmatization in Singapore. When the concern was on path and the net income generated was stable in Singapore, so it begins looking to overseas for enlargement. Even though the operation in Singapore have been stabilised, the company has been slow in come ining emerging markets unlike rival like Bread Talk which has a fast turning presence in niche market in China and Middle East. Thus the company has been losing its competitory border in term of gross from abroad concern. In the long term, the company should concentrate on abroad concern and obtain most of its gross from abroad as Singapore Market has reached its impregnation point.

Although the nutrient merchandises of Old Chang Kee were appealing for Singapore, proper market study and research into the new market has to be done before come ining the market. The new market might non accommodate to the gustatory sensation of the nutrient merchandises offer by the company after all. With proper market study and research, the company can experiment and come out with the new gustatory sensation to provide to the gustatory sensation of the new markets and therefore cut down the hazard of neglecting in the venture.