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London Biscuit

Strength
1. Having wide market share.
2. Pioneer in introducing cakes without refrigeration.
3. Adhering to stringent quality and safety standards.
4. Many factory acquisition.
5. High variety of products
Weakness
1. The advertising is lame and old fashioned
2. Some product are not commercialize enough in local markets
3. Low innovation of new products
4. low quality packaging
5. limited target of audience.

Opportunity
1. Adopts several approaches to cover the vast market.
1) Working with partners
2) The company markets its products wholesale
3) Use different models for different countries
4) Participates in food exhibitions
5) Wants to further expansion to China.

2. Plans to launch health supplement products.


1) Apply certain strategy of growth.
2) Use emerging technology to increase productions.

Threat
1. Increase in price of goods that leads to inflation does limit the purchasing power.
2. New competitor in same product variation .
3. Competitor actively introducing new innovative products.

Brahim
Strength
1. Convenient, easy and fast.
2. Healthy and quality food
3. Halal food products
4.long expiry date
5. Safe production plant
6. Supply big tender to Mas C
in 1994
Weakness
1.little advertising
2.packaging is not reclosable

Opportunity
1.Export to even more country
2. offers more flavors to consumer
3. focus on social welfare undertakings
4. organize contest with attractive prizes.

Threat
1. price rivalry in market
2.intense competition
3. Consumer doesnt believe Brahim products has long shelf life without
preservatives.

Appendix

London Biscuit
Strength
1 Having wide market share.
Achieving success in its home market, London Biscuits expanded its scope and
established a global export network. Exporting 50 per cent of its products,
London Biscuits' distribution markets include France, India, Russia and South
Africa, among others. The majority of its international sales come from the Middle
East, Southeast Asia and Asia-Pacific.
Given the competitive landscape internationally, London Biscuits established its
international brand presence through exhibitions, including Foodex in Japan,
FHA in Singapore and THAIFEX in Thailand. The company goes as far as
Europe to attend the International Sweets and Biscuits Fair in Germany and
Prodexpo in Russia.
Anticipating the demand from its export markets, London Biscuits embarked on
another capacity expansion to commission the single biggest roll-cake production
line in the region.

Sales
local market
Southeast Asia
Asia pasific
Others

2 Pioneer in introducing cakes without refrigeration.


London Biscuit is among the earliest company who enter to cake industry
without refrigeration in Malaysia in year 1994.
As a pioneer, London Biscuit enjoys brand recognition as well as customer loyalty
towards this brands.
3 Adhering to stringent quality and safety standards.
London Biscuits employs the latest food manufacturing technologies to meet
international regulations. Its numerous certifications attest to the company's
product quality and safety. Aside from an ISO 9002 quality assurance
certification, London Biscuits' cake production facilities have been awarded
Hazard Analysis and Critical Control Points certifications. All London Biscuits
products are also certified halal.
4 Many factory acquisition.
Capacity building is key to achieving the family's growth plans. London Biscuits
acquired several new factories to manufacture more products such as biscuit cup
dips and its first long-shelf-life pie cake line. With even more factory acquisitions,
London Biscuits continued its aggressive product expansion into cake
confectionery with the first Swiss roll line. From Swiss rolls, the company
developed its signature product, the London Roll.
The London Roll is a cake with different fillings such as chocolate, vanilla, milk,
strawberry and coconut. The London Roll has become quite a popular product
that London Biscuits bulked up its capacity to produce 36.39 tonnes of the rolls
per day.

In 2004, London Biscuits expanded its production capacity for cakes conversion
to usage of pasteurized liquid eggs for production completion of a custom built
office cum warehouse facility. In the following year, the group purchased its 6th
factory and acquired Kinos Food Industries with its two factory premises. London
Biscuits acquired 25% stake in Lay Hong, an integrated poultry farming company,
in 2006. In 2007, the group acquired a majority stake holding in Khee San
Berhad, a manufacturer of sweets and candies. The company launched its
London choco roll and milk roll cake products, and purchased its 9th factory in
2008. London Biscuits launched its potato bites range of potato chips in 2009.
5 High variety of products
London Biscuit manufactures range assorted chocolate confectionery
including chocolate-coated peanuts and biscuits, pancake cookies, jelly and
puddings, wafer sticks, cup sticks and snack noodles. Some of the London
Biscuits products are marketed under the brand names: Lonbisco, London,
Kinos, Gega, Caca, Mizu, Hiro.
London Biscuits is constantly improving its existing product lines by developing
different flavours. For its candy lines, the company is moving beyond fruit-based
to creamy flavours such as chocolate and milk.
As a trailblazer in the snack industry, London Biscuits does not sit on its laurels. It
continuously challenges the status quo in the snack industry and raises
expectations of consumers. This is what London Biscuits aims to achieve with
the introduction of its premium products. Under this line, the company aims to
produce healthier and more nutritious cake snacks to target an increasingly
growing health-conscious population.

2.Malaysians plagued by poor purchasing power


BY LEE WEI LI AN , YOW HONG CHIEH AN D MELISS A CHI
APRIL 19, 2011
L ATE S T UPD ATE: AP RIL 19, 2011 07:14 PM

LUMPUR, April 19 Malaysians who find themselves affording less than their
contemporaries overseas have distorted and inefficient markets, lack of competition, low
wages and a weak ringgit to thank for their poor purchasing power, which in the case of
KL, is only 34 per cent that of New York.
Despite government assurances stating that inflation is under control, Malaysians are
becoming increasingly restive over the cost of goods in relation to wages, especially
those who are able to compare the corresponding price-to-wage ratios in developed
economies.
Malaysians who have experienced working and living abroad often experience sticker
shock when they come back and see prices in KL.
Oh my God, a Tiramisu is RM15! said Calvin Lee, a Malaysian who has lived in
Sydney, Singapore and now London, referring to what cafes in KL are charging for a
slice of cake as compared to about GBP5 (RM25) in London.
Aidi Zalman, a consultant who studied in the UK, told The Malaysian Insider that
salaries in London could go much further than KL.
He had worked part-time as a waiter in London and noted that a single days wages of
about GBP50-60 was already enough for him to buy a pair of branded shoes and even
a low-end iPod, a concept unthinkable for local waiters.
GBP100 can feed two apartments of students for a week, he said. Here you can
spend RM100 and get hardly anything.

I hate it when politicians make stupid statements like Malaysia is cheap, said Edward
Seah, an engineer who has previously worked in Singapore and the US. Prices might
seem cheap when you convert it to US dollars yes, but then we should also convert our
salaries to US dollars.
Victor Wong, a Malaysian expat in Sydney, said that Australians get more mileage out of
their money.

He gave the example of clothes where he said he can get a good quality shirt for about
AUD100 but would need to spend about RM200 to get similar quality in KL.
Wong pointed out that even Asian food could be more affordable for those living in
Sydney than KL.
You pay RM15 for a bowl of soup noodles in KL shopping centres but only AUD10 in
Sydney shopping centres, he said.
The 2010 Prices and Wages report by Swiss bank UBS AG show that residents in KL
have only 33.8 per cent the purchasing power of their counterparts in New York, 42 per
cent that of London, 33.7 per cent that of Sydney, 32.6 per cent that of Los Angeles and
31.6 per cent that of Zurich.

The same study showed that on average, KL residents have to work 22 minutes to
afford a loaf of bread as compared with 18 minutes in Los Angeles, 16 minutes in
Sydney, 15 minutes in Tokyo and 12 minutes in Zurich.
The figures grow much worse for imported items. To buy an iPod Nano, a KL worker
would have to labour a whopping 52 hours as compared with just 9.5 hours in Los
Angeles and Sydney, 12 hours in Tokyo and nine hours in Zurich.
A check on salaries and prices in selected developed country cities by The Malaysian
Insider showed that despite being touted as one of the worlds least expensive cities, KL
residents pay as much or even more for chicken, broadband, cars and mobile phones
as a percentage of their income.
Communications, for example, is one area where Malaysians are paying notably more
than residents in developed countries even after currency conversion.
A 5Mbps broadband package costs RM149 in KL while in London, a 10Mbps package
would cost GBP13.50, in Melbourne a 5-8Mbps package costs AUD40 and in New York,
a 7Mbps service costs USD41.95.
Those who want to buy an iPhone 4 in KL, meanwhile, would have to pay RM1990 with
a basic 24-month contract while in London, residents can get an iPhone 4 for just
GBP199 with a basic 24-month contract and in Singapore, it costs just SGD210 with a
basic contract.
Maybank Investment Bank chief economist Suhaimi Ilias said that what is important is
local perception and not official inflation figures which claimed that the inflation rate in
Malaysia was only 1.7 per cent last year.
I think on the ground, not many people feel we are cheap, said Suhaimi. They feel
that the cost of living is high regardless of what the inflation figures are.

He added that inefficiency and lack of competition are contributing to the higher prices
in Malaysia.
I cant understand why a motorcycle should have to cost RM6,000-7,000 and a car like
the Perodua Viva should cost over RM30,000, he said.
RAM Holdings chief economist Dr Yeah Kim Leng said that cars are one of the sectors
where the Malaysian market suffers the heaviest distortion.

A Honda Civic in KL costs about RM115,000, or 20 times the average monthly salary of
an auditor.
In Melbourne and London by comparison, a Honda Civic costs AUD25,000 and
GBP19,000 respectively, or only about three times the average salary of an auditor in
those cities.
The high cost of cars is part of the reason that Malaysians have leveraged themselves
to a record 76 per cent of the countrys GDP.

Bank Negara statistics show that at the end of last year, 20 per cent of Malaysian
household debt was due to cars, an asset which depreciates over time.
Yeah also said that the ringgit is undervalued and distorts the countrys purchasing
power for imported goods.
We need to ensure prices are right and that there are no market distortions, no
subsidies and allow market prices, he said.
But even if the ringgit is allowed to rise, there is no guarantee that savings would be
passed on to consumers. The ringgit is now hovering at RM3.02 to the US dollar but
Goldman Sachs predicated yesterday the currency could hit RM2.98 to the US dollar in
the next three months.
When The Malaysian Insider contacted the director of wholesale and retail at
government think tank Performance Management and Delivery Unit (Pemandu),
Ravidran Devagunam about the higher prices Malaysians pay forbranded goods, he
acknowledged that some retailers will maximise profits on luxury items not readily
available in Malaysia but said that the government is unable to compel them to
discount their prices even after the abolishment of import duties as luxury goods and
apparel are not controlled items.
However, we believe that market forces and consumer education will eventually force a
price reduction of these goods over time, he said.
The Federation of Malaysian Consumers Associations Secretary General Mohd Shaani
Abdullah said people should question the prices that they are currently paying.
Consumer protection will only come about when people make noise, he toldThe
Malaysian Insider when contacted. Only then will politicians act.

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References
1. www.themalaysianinsider.com/malaysia/article/malaysians-plagued-by-poorpurchasing-power
2. http://www.scmp.com/article/1456080/london-biscuits-delights-asian-palates-tastyselections
3. http://malaysiafinance.blogspot.com/2010/01/why-i-like-london-biscuits.html
4. http://www.brahimsfood.com/images/articles/26_TheStar_27Sept2013_MetroBiz2.jpg