[ ] BPMN 3143

Table of Contents1.0 Background of Company................................................................................................3

2.0 Company Profile.............................................................................................................3

3.0 Vision, Mission, Objective and Strategy.........................................................................4

4.0 Organization Chart..........................................................................................................8

5.0 Environmental Analysis..................................................................................................9

5.1 Politic.........................................................................................................................10

5.2 Economy....................................................................................................................10

5.3 Social-Cultural...........................................................................................................11

5.4 Technology................................................................................................................11

5.5 Ecology......................................................................................................................12

6.0 Five Forces Michael Porter...........................................................................................12

6.1 Threat of New Entrants.............................................................................................12

6.2 Bargaining Power of Supplier...................................................................................12

6.3 Bargaining Power of Buyer.......................................................................................13

6.4 Threats of Substitute Products...................................................................................13

6.5 Intensity of Rivalry Among Competitors..................................................................13

7.0 SWOT Analysis............................................................................................................14

7.1 Strength......................................................................................................................15

7.2 Weaknesses................................................................................................................17

7.3 Opportunities.............................................................................................................18

7.4 Threats.......................................................................................................................18

8.0 Recommendations.........................................................................................................19

8.1 S1O1 - Growth Strategy............................................................................................19

8.2 S6O2 - Marketing Strategy........................................................................................20

8.3 W1O2 - Increase Indirect Marketing.........................................................................20

1 | P a g e

[ ] BPMN 3143

8.4 S5T1 - Product Development Strategy......................................................................21

8.5 W3T1 - Improve Their Facilities...............................................................................21

8.6 W2T2 - Aggressive Marketing strategy....................................................................21

9.0 Appendix.......................................................................................................................23

References................................................................................................................................24

2 | P a g e

[ ] BPMN 3143

INTERNAL FORCES

1.0 Background of Company

Our company we selected is a local company called Mudim Zakaria Enterprise at No. 26,

Kampung Jelutong, Mukim Tobiar, 06700 Pendang, Kedah Darul Aman. Mudim was

founded by Tuan Haji Zakaria Bin Arshad also known as Mudim. He started with the

business of medicines in small-scale, then his business became increasingly advanced

because his efforts.

In 1987, he was successfully added new product line which is the producer of soy

sauce and sauce. The development and progress of the Mudim also is assisted by his son, Mr.

Shaarani Bin Zakaria. Mr. Shaarani, very work hard and committed to the production of

sauce and soy sauce so his father give encouragement and more guidance to grow their

businesses. As a result, Mr. Shaarani successfully expands the Mudim.

Mr. Shaarani also attended various courses organized by the Government such as

MARDI, MARA, MADA, FAMA and SIRIM to establish himself in business. To ensure

Mudim get place in the local market, Mr. Shaarani, participated in several food products

Expo organised by the relevant parties in any place such as Expo MIHAS in Melaka, IAT

Expo at the Putra World Trade Centre in Kuala Lumpur and ALL-Expo in Serdang, Selangor.

The effect of participation product Mudim in the Expo, a demand to product Mudim

is increasing from time to time. In local market MUDIM product penetrate all in

hypermarkets in the stated North of Malaysia such as Tesco, C-Mart, Giant and Mydin.

Abroad, the product Mudim successfully penetrates in Brunei, Singapore and Thailand. It

proves Mr. Shaarani, have successfully put a brand Mudim adjacent to other competitors not

only in domestic markets but also the global market.

2.0 Company Profile

The company Mudim is fully owned by “Bumiputera” (local people of Malaysian). Mudim is

also one of the small and medium enterprises (SMEs) in Malaysia that produce food

products. The main activity was as a manufacturer/Mudim manufacturer soy sauce, chilli

sauce and vinegar. The company was started with a capital of RM10, 000 to produce and

market their products.

3 | P a g e

[ ] BPMN 3143

Mudim applied Islamic concept in its production. Because of that, company Mudim

strongly emphasized cleanliness and purity of the product in their production. This is proven

when Mudim in the process achieve a level of GMP (Good Manufacturing Practice). In this

regard, Mudim has sent representatives to attend some courses organised by SIRIM in order

to strengthen the company in the field of management and skills towards achieving GMP.

Mudim also guaranteed HALAL and has been certified by JAKIM.

At first, Product Mudim only marketed in their sited around then expanded the market

to whole the city Kedah, Perlis and Pulau Pinang. With enhanced marketing strategies

through experience, technological advances, expertise, quality control products company and

efficient product distribution management, Mudim product now more confident to penetrate

the food industry in the domestic market and the global market.

The uniqueness of the product with the finest taste Mudim which meet the tastes of

various levels of users make Product Mudim demand from customers. In addition, advances

in packaging which is different with their competitors improved the Mudim image more

confident among competitors. Mudim also always aware that Mudim need to continue

improve performance to be more viable for opportunities in the market. Therefore, Mudim

felt was essential to enhance the efficiency and technology of machinery in the factory in

order to carry out a productive operation production from time to time.

3.0 Vision, Mission, Objective and Strategy

According to Darbi W. P. K. (2012), “mission and vision statement have been

overwhelmingly accepted as an indispensable part of the strategic management process for

organizations of all types; be it public sector, not-for-profit, private, for private, a

multinational or a small and medium scale enterprise. It is widely believed that mission and

vision statements impact on strategy and most aspects of organizational performance. Most

firms have mission and vision argument”. In addition, mission and vision statement tend to

motivate, shape behaviors, cultivate high levels of commitment and ultimately impact

positively on employee performance (Mullane, 2002). Similarly, the Mudim company they

have their own mission and vision that became the basis for their management.

Vision of Mudim Business is produce a high quality and halal products in local and

global markets. This can be seen when the Mudim responsible for all their outputs in terms of

quality of materials and packaging. To improve their product quality in production, Mudim

4 | P a g e

[ ] BPMN 3143

obtain Halal certification from JAKIM and certificate of authenticity of the taste and quality

from MAINK. The Mudim Company also shows their commitment in quality assurance when

their company promises if happen any damage related content, colour or packaging in Mudim

product, the product will be replaced back by Mudim free of charge.

The second Vision of Mudim is to continue be contributor to economic growth in the

country. This can be done with the support of the Ministry of domestic trade & Consumer

Affairs (MDTCA), Majlis Amanah Rakyat (MARA), Federal Agricultural Marketing

Authority (FAMA), young Algricultural Development Authority (MADA) and MARDI.

With the help of this parties Mudim will continue to be robust and moving forward with

opportunities that will provide benefits to the Mudim company and the country.

In management tools mission and vision cannot be separated from a corporate strategy

and vision and mission provide firms to achieve high performance and to survive in a long

time period. Many organizations generally have both a vision and mission statement.

Developing a vision statement is often considered the first step in strategic planning,

preceding even development of a mission statement (Orhan, Erdogan and Dumaz, 2014).

“The mission statement is a declaration is a declaration of an organization’s reason for being.

It answer the vitally important question What is our business? Why do we exist? What are we

trying to accomplish?” (Bart, 1997).

The mission of Mudim Company is Mudim want to be creative, innovative,

competitive and viable for heading towards a “Excellence, Glory and Distinction” towards

vision 2020. At present, the terms in the mission which is, creative and innovative Mudim

Company already approaching this mission. This is because of the way packaging and

different materials in product Mudim compare with other companies. But, in terms of

competitive and viable Company Mudim does not reach solely in the market.

It is said to be so because, in the market in State South and eastern Malaysia Mudim

Products still do not get a place in the hearts of users compared to the State in north of

Malaysia. This can be proved when the product Mudim not available in hypermarkets such as

Giant, Aeon Mydin, Big, and Tesco in the stated South and East Malaysia.

The second mission Mudim Company is, Mudim will always provide excellent

products with customers high quality products at an affordable price. This can be proved

when the company received recognition from various Mudim parties such as MeSTI, MADA,

5 | P a g e

[ ] BPMN 3143

JAKIM and MAINK. In addition, a very affordable price for each product produced by the

Company Mudim. For example, the price of a bottle of soy sauce only RM 2.80.

The third mission Mudim Company is Mudim will always be committed to build a

brand ' Mudim ' as well as add value the product to achieve the expectations of the user. This

can be seen when the Mudim successfully produce a wide range of their products such as soy

sauce Mudim have 3 flavors which is Kicap Istimewa, Kicap Manis and Kicap. In addition,

Mudim Company also added the contents in the ingredients of products with a variety of

exciting flavors.

The last Mission Mudim is Mudim will always remain committed to be a leader in the

food industry in Malaysia. This can be seen when the Mudim successfully market their

products in the State of the northern part of Malaysia. In contrast, in the state South and East

part of Malaysia product Mudim is not familiar by community there. Therefore, the mission

is not fully accessible to Mudim yet. This is maybe because the promotion in the state

Northern part of Malaysia not like in the States in the South and East Malaysia.

As a result, vision statement describes what the firm wants to be in the future while a

mission statement describes what the firm does and mission is a special task which is given to

the firm to reach the desired future of the firm defined in the vision (Orhan, Erdogan and

Dumaz, 2014). Leaders are responsible for creating and maintaining vision and mission

statements, but it can be achieved through whole employees in an organization ( Storel &

Bontis, 2002)

The objective of the Mudim is Mudim really confident achieve their mission and

vision that has been set. At the same time Mudim will continue to strive to achieve the vision

and mission Mudim Company. In addition, Mudim believes Mudim Company will able to

run enterprises in line with the economic and social development for the long run. This can

be seen when the Mudim Company upgrading their infrastructure from time to time. For

example, do the renovation for their factory to facilitate the distribution their products to

suppliers, retailers and customers.

6 | P a g e

[ ] BPMN 3143

Next, objective Mudim is Mudim be able meet the demand of the market and provides

the quality products in the local and global customer. This can be proved when the Mudim

received recognition from the JAKIM and MAINK. Lastly, the Mudim Company objective is

Mudim will be able to share benefits the production of their products with distributors and

buyers. This can be done when the company Mudim quality products and efficient and

effective.

7 | P a g e

[ ] BPMN 3143

4.0 Organization Chart

ZAKARIA

.

8 | P a g e

DIRECTORHJ.SHAARANI BIN

MANAGERHAKIM B. OSMAN

HUMAN RESOURCE

SITI MURNI BT

ABD HAMID

ACCOUNT

EXECUTIVE

NOOR ASMAH

ASSISTANT

OFFICE

RAZLIN REZZA

MARKETING

EXECUTIVE

FATIMAWATI

IVENTORY/QC

ATIKAH

ACCOUNT (AR)

NUR SHAFIZA

ACCOUNT (AP)

HUSNA

PRODUCTION MANAGER

SHAHRUL NIZAM

SUPERVISOR

ABD AZIZ

MAINTAINANCE

NAZIM HARUN

CLEANER

(3 ORANG)

COOK OPERATOR

(3 ORANG)

PACKAGING OPERATOR

(22 ORANG)

SALES STAFF

(10 ORANG)

TOTAL STAFF

44 PEOPLE

[ ] BPMN 3143

EXTERNAL FORCES

5.0 Environmental Analysis

Environmental analysis it is very important in all business. The scanning environmental is the

primary process no matter what of business made. In environmental analysis, it can divide to

politic, economy, social-cultural, technology and ecology (PESTE). Environmental analysis

like (PESTE) is an external factors. In analysing the macro-environment of an organization,

it is important to identify the factors that might in turn affect a number of vital variables that

are likely to influence the organization’s supply and demand levels and its costs (Johnson and

Scholes, 1993). The use of (PEST) analysis can be seen effective for business and strategic

planning, marketing planning, business and product development and research reports

(Koumparoulis, 2013). (PESTE) also ensures that company’s performance is aligned

positively with the powerful forces of change that are affecting business environment (Porter,

1985).

9 | P a g e

[ ] BPMN 3143

5.1 Politic

Political factors refer the policies and actions of the governments wherein the company is

operating and located. Political and legal are important factors especially in food industry. It

can indirectly affect the Mudim. Political stability in the country plays an important role in

the external environment of the company. The political stability of Malayisa, especially in

north of Malaysia, make Mudim can survive in the industry and all the business process can

run smoothly.

Next, the government policies that encourage the development of entrepreneurs give a

lot of chances to Mudim to expand their business. Various types of assistance by the

government such as in financial cause Mudim can compete with other competitors in food

industry. For example, assistance from FAMA and TEKUN in operating their business

indirectly speed up the business growth of Mudim. Next, the tax policy that recently

introduced which is Good and Services Tax (GST) affect all the business, includes Mudim.

The sales of Mudim were decreases when this new tax policy introduced. In some cases,

there are some SME’s company which need to close the business.

5.2 Economy

The economy factors concerned with the overall view of the economy. The macro economy

of a nation has a huge influence on the business of Mudim. It includes gross domestic

product and inflation. If the overall economy is not stable and desirable, Mudim will not

expand their business because there is a probability that the company will lose a great amount

of money. Through gross domestic product (GDP), we can see the overall market value of the

goods and services produced by a country for a certain specified period.

Income per capita is one of the factors in economy indirectly affect the Mudim. The

average of income per capita of Malaysia is at the moderate levels which make the Mudim to

carry on the business. This is due to the products of Mudim are affordable for all segments of

customers. The cost of living also one of the factors in economy. As we know that, Mudim

dominated the most part of north Malaysia such as Kedah and Perlis. This is due to the cost

of living in northern area are lower compared to other part of Malaysia.

10 | P a g e

[ ] BPMN 3143

5.3 Social-Cultural

Mudim products is for everyone. People from any area, culture and income will use soy

sauce, chilli sauce and vinegar in their daily life. It is not any luxury item which is used by

only specific people. Social-cultural is the most difficult factors since beliefs and attitudes of

people cannot be easily quantified. Demographics also play an important role in the social

factors, as well as, the different in tastes and behaviours of the consumer. Consumers in

northern and southern part of Malaysia have a different tastes and behaviours. Mudim

produced the products with different tastes to meet the customers demand and preferences.

For example, from the three types of soy sauce, only Kicap Manis are distributed in southern

part of Malaysia. This is due to the different in the geographical taste.

Apart from different tastes of consumers, lifestyle also affect the social-cultural of

industry. The villagers who are mostly used soy sauce as their daily food for cooking

purposes, make Mudim can survive in this industry. Moreover, this kind of people put more

trust on Bumiputera products compared to the international products.

5.4 Technology

Internet and Mobile Technology is currently growing rapidly in the market where all of the

people nowadays will get contact with it. Mudim could use this advantage to benefit them by

using technology to promote their products. Customer could get any information from their

websites such as types of products offered and also the prices. Mudim did research and

development (R&D) by using the technology to find more information to satisfy the local

tastes. By understanding what each part of Malaysia and others country ask for, Mudim could

produce and market different products according to customer demands and preferences.

The rapid changes in technology nowadays have wider range of effects in Mudim. For

example, the use of advanced machinery in operation process had increase the productivity. It

is also can reduce the errors during the operation process. Apart from that, Mudim used the

electric power for cooking process. This is the way to reduce the pollution resulting from the

use of fuels such as gas and diesel. It is already proven that the technology factors are

important for Mudim.

11 | P a g e

[ ] BPMN 3143

5.5 Ecology

Ecology is one of the factor that affect the business. Nowadays, most of the peoples are aware

about the environment. Mudim have been using the plastic bottles for their product

packaging. This is consistent with the environmental law that implemented in Malaysia.

Using a plastic bottles are easier to recycle as well as not producing much pollution. Thus,

Mudim have their own strength compares to their competitors and indirectly affect their

business.

6.0 Five Forces Michael Porter

6.1 Threat of New Entrants

The possibility new firms may enter the industry also affect the competition. In theory, any

firm should be able to enter and exit a market. However, industries possess characteristics

that inhabit additional rivals from entering the market. Current food industry, specifically soy

sauce industry is an pure competition market in which a large number of competitors

dominate the marketplace such as Jalen, Habhal’s, Adabi, Tirana and others. A pure

competition market commonly typically easy to enter and exit the market. Therefore, new

entrants affect the food industry, which is soy sauce industry.

6.2 Bargaining Power of Supplier

A manufacturing industries requires raw material such as labour, components and other

supplies. The supplier can exert an influence on manufacturing industry if they have a high

bargaining power. For example, selling raw materials at a high price. The suppliers for

Mudim may include suppliers of soy bean, chilli, garlic and other ingredients of soy sauce

12 | P a g e

[ ] BPMN 3143

and chilli sauce. Since the raw materials needed by Mudim is not unique and easy to get,

suppliers’ bargaining power for Mudim products are relatively weak. They are many

competitive suppliers and Mudim can easily find a new supplier if the current supplier

charges at a price that is not competitive enough. However, Mudim prefers to create and

preserve long term relationships with its suppliers as this helps to ensure the quality of raw

materials being purchased.

6.3 Bargaining Power of Buyer

The bargaining power of buyer is the impact that customers or buyer have on manufacturing

industry. The bargaining power of buyer is relatively high in an pure competition industry

because the companies are usually price taker, and it is easy for customers to move on to

other companies’ products since there is a lot of well-known branded companies that produce

soy sauce. Mudim understand the power of the customer and has taken specific steps to meet

the needs of its consumers.

6.4 Threats of Substitute Products

In Porter’s model, substitute products refer to products in other industries. Due to the nature

of the industry, Mudim is afflicted with the threat of substitute products. As more substitutes

become available, the demand becomes more elastic since customers have more alternatives.

In soy sauce industry, oyster sauce can be a possible substitute for soy sauce but it seems to

be no real threat to soy sauce.

6.5 Intensity of Rivalry Among Competitors

The soy sauce industry is very competitive because, as mentioned above, it is a pure

competition market. This is due to the recipes of soy sauce and the ingredients used to make

it are usually the same and low level of product differentiation. Thus, Mudim needs to set up

objective to gain its market share by processing competitive advantages over its rival

companies such as Jalen and Habhal’s. Mudim was increasingly facing fierce competition as

many food manufacturing rivals had achieved significant improvements in their operating

efficiency.

13 | P a g e

[ ] BPMN 3143

7.0 SWOT Analysis

Strengths

S1) Recipes hereditary

S2) Be able to receivevarious

awards

S3) Packaging strategies

S4) Monopoly in Northern of

Malaysia.

S5) Affordable price

S6) Strong support from

government agency

S7) Good relationship with

the suppliers

Weaknesses

W1) Less comprehensive

marketing strategy

W2) The supplies are not able

to meet customer demand

W3) Inefficient operation

machine

W4) Has no long-term strategy

Opportunities

O1) Customers' confident on

local product

O2) Indirect Marketing

Strengths-Opportunities

S1O1- Growth Strategy

S6O2 – Marketing Strategy

Weaknesses-Opportunities

W1O2 - Increase Indirect

Marketing

Threats

T1) Competition with others

firms

T2) The changes of customer

perception and behavior

Strengths-Threats

S5T1 – Product Development

Strategy

Weaknesses-Threats

W3T1- Improved Their

facilities

W2T2 - Aggressive marketing

strategy

14 | P a g e

[ ] BPMN 3143

7.1 Strength

1. Recipes hereditary

Mudim has been established for almost 27 years which was started in the year 1987. At the

beginning, this business only startedfrom his house which his wifeproducesthe soy sauce by

followed the recipes that they created and then sold it around their housing area. What is the

most interesting part is the Mudim products do not changed at all since Mr. Zakaria

introduced it until today although the machines and tools are changed due to the innovations

process. Hence, we can conclude that the recipes of Mudim products are not changed even it

was introduced almost three decades ago.

2. Receive various certifications and awards

The Mudim products have been received numerous awards which directly help to increase

and maintain their reputation. Besides, it also can be one of the main attractions to the

potential and loyal customers which they more prefer to buy and use Mudim products. For

example, after struggling many years, finally Mudim successfully received awards from

MESTI, HALAL, MADA and also 1 MALAYSIA BEST. According to Mohamed Syazwan

& Abu Bakar Abdul Hamid (2013), for products or services to be deemed Halal, they must

follow the Shariah principles that state that the product or service. Hence, this is means that

Mudim products are qualified to receive halal certification because they produce the product

with full of Shariah principles. Here we can see clearly that it’s not an easy thing to achieve

high standard and receive various awards especially in food and beverage industries. Hence,

it is proven that Mudim products have high quality standardization due to its excellent

achievements.

3. Packaging strategies

Mudim products have their own packaging design which is their soy sauce, vinegar and sauce

products have a unique design and different from others products in the markets. For

instance, they are using plastic bottles as their main packaging while we can see clearly

others products competitors packaging are made up from glass which are very fragile. Hence,

this Mudim products are more suitable to be used for the whole family including the children

because it’s not easily broken when its fall down. Hence, this special feature has been one of

the main advantages to attract the customers to choose these products

15 | P a g e

[ ] BPMN 3143

4. Monopoly in Northern of Malaysia.

As what we know, Mudim is located at northern of Malaysia where their plants are in

Pendang, Kedah. These can be one of the main advantages to the Mudim to have monopoly

power in the northern market likes Kedah, Penang and also Perlis. Besides, in northern of

Malaysia, we can see that the composition of the Malay citizens are more and indirectly give

an opportunity to the Mudim. This is because Mudim products is a bumiputera product,

hence, the potentials customers and loyal customers are more confident to buy and use their

products.

5. Affordable price

This is one of the main elements why people are more prefer to choose Mudim products

compared to other companies products which is the price. The product’s price are extremely

affordable and reasonable compared to others brand likes Habhal’s and Jalen products. For

instance, the price for a bottle of Mudim soy sauce is about RM2.80 while it competitors,

Habhal’s soy sauce is costly about RM5.80. Jalen soy sauce also quite costly compared to

Mudim soy sauce which is about RM3.10. Hence, it is proven that Mudim products are more

competitive in term of the selling price compared to others business.

6. Strong support from government agency

As an enterprise entity, Mudim has been received numerous of support and helps from

government agency likes FAMA and MADA. This is a huge advantage to this business where

they can lighten their burden especially in term of financial resource. For instance, Mudim

was planned to expand and conducted some renovation on their plants where they want to

place in the new machine to increase their efficiency in term of producing the output.

Fortunately, FAMA are willing to support all the cost and therefore, Mudim business no need

to spend their money for the renovation process.

7. Good relationship with the suppliers

From the result of interview that we conducted towards the manager of Mudim, Mr. Hakim,

we found that there are good relationships between the suppliers and that business. It can be

clearly proven when there is no problem that occur in the process of ordering and receive the

raw materials from the suppliers. A good relationship between suppliers and the business are

extremely important to make sure that the process of transforming the input into output. In

16 | P a g e

[ ] BPMN 3143

this Mudim, the main raw materials is the soy and normally its will be sent once a week to

prevent surplus of the stock. Besides, the raw materials that the suppliers provide to that

company are affordable and the its quality also are maintain.

7.2 Weaknesses

1. Less comprehensive marketing strategy

For marketing strategy aspect of Mudim, we can see it is less comprehensive. Mudim only

focuses to market their products at the North of Malaysia without involving the South, the

East and West of Malaysia. For examples, the Kuala Lumpur has a high population and

Mudim can use this huge opportunity to introduce their product. However, apart from

northern of Malaysia, they only depend on the agents that distribute the products into

Hypermarket. Moreover, Mudim are not focusing too much at the area which there are many

of Malay citizens likes Kelantan and Terengganu which indirectly helps them to maximize

their profit.

2. The supplies are not able to meet customer demand

Mudim is not able to meet customer demand towards their product. Their manager said that

the supplies are less than the demand which can create few problems. Firstly, the main effect

is they might lost their loyal customers when the stock are not available at the retail store.

Hence, this will makes their loyal customers switch to other substitute products.

3. Inefficient operation machine

This is one of the problems that Mudim have to face where their operation machine are not

enough to produce two products at the same time which is sauce and soy sauce. This is

because let say if this week they produce soy sauce, then they have to wait about a week

more to clean the machine and use it to produce the sauce. Hence, it will reduce their

operation efficiency. Besides, they have to wait about a week because of hygiene factors

which they have to maintain the quality standard. This is to make sure that the machine is

completely clean and dry well before they use it to produce other product.

17 | P a g e

[ ] BPMN 3143

4. Has no long-term strategy

If we analyse the Mudim long term strategies, we found that their business plan are not too

realistic and not too clear. This is means they do not have a fixed long term strategies, but

their plan are always change based on the opinion of their CEO, Mr. Shaarani. The Mudim's

Manager, Mr. Hakim said that they still strive for their vision as long as they still can run

their business and maximize the profit.

7.3 Opportunities

1. Customers' confidence on local product

Since the Mudim products have been produced by “bumiputera”, people will prefer to buy

their product because they feel extremely confident to use it. Moreover, most of the

customers feel more confident towards the operation to produce the Mudim products and also

their main ingredients which are absolutely halal since they have received this certification

from JAKIM. Hence, this will give more advantage to the business to atrract more customers

especially Muslims. Indirectly, customers will also give full of support to that business and

this will helps them to maximize their profit.

2. Indirect Marketing

From the result of interview that we conducted towards the manager of Mudim, Mr. Hakim,

we found that their products not only has been marketed in the Malaysia but also has been

introduced in overseas like Egypt, Brunei, Indonesia and Singapore indirectly by the

unofficial agents who is the students that further their study there. The students will bring

along the Mudim products in the huge quantity for their self and also they will sell it to their

friends there. Besides, other indirectly marketing that helps to commercialize the Mudim

products by doing a lot of assignment for their subject in the university especially likes

advertisements and research. This factor will helps to promote Mudim products indirectly to

the inside and outside Malaysia.

18 | P a g e

[ ] BPMN 3143

7.4 Threats

1. Competition with others firms

One of the main threat of Mudim is the competition with others firms that also market the

same products likes sauce, soy sauce and vinegar. Besides, their competitors already achieve

variety of awards especially in term of quality standardization. For instance, Habhal’s soy

sauce which is extremely well known in this country especially in west of Malaysia was

received ISO 9000:2008 awards which can clearly mentioned that this product are absolutely

fulfill the quality standard that can attract more customers to choose their products.

Furthermore, we can see that the competitor’s products have been marketed all over the

Malaysia including Sabah and Sarawak. Besides, most of the hypermarket likes Giant, Tesco,

Aeon and Mydin place their product at the first shelf and people can see their product easily.

Furthermore, the competitor’s products are also easily to enter the market especially huge

market due to their popularity and also the aggressive advertisements. Meanwhile, Mudim

products are not too easily to enter the huge market in Malaysia and only depend on the

agents that sell it to few hypermarkets in Malaysia.

2. The changes of customer perception and behavior

For the loyal customers, it’s not a big deal to make sure that the Mudim products will always

be their main choice. However, some of the customers are always change their taste and

behavior based on the factor likes their income, the regulations of the government, the

influences of advertisement and also the substitute products. For example, influences from

the advertisement of others product might change the perception and behaviour of the

customers. They might be interested to try new product that looks more attractive in the

television, magazine or newspaper. Hence, this will be one of the greatest influences that can

change the customer’s perception and their buying behaviour towards Mudim products.

19 | P a g e

[ ] BPMN 3143

8.0 Recommendations

8.1 S1O1 - Growth Strategy

Since we know that Mudim products are using their own secret recipes, hence, this is one of

the main strengths that help their business maximize the profits. The taste of the product

especially soy sauce are different from others. The textures of the Mudim products are more

classic and pure which they never make any innovations in their recipes. Hence, the loyal

customers especially the older will always stick to buy and use this product because the taste

and texture never changed.

Mudim products had received numerous of awards and certifications likes HALAL

certifications which make the customers more confident on their products. Hence, this will

give more advantage to the business to attract more customers especially Muslims. Indirectly,

customers will also give full of support to that business and this will helps them to maximize

their profit.

The best strategy that Mudim should implement is the growth strategy which they

have to expand the company’s activities. This is means that this business can maximize the

production and try to minimize their cost. Hence, they can easily distribute their output inside

and also outside of Malaysia. Furthermore, this will overcome the supplies problems that

cannot meet the customers demand.

8.2 S6O2 - Marketing Strategy

Strong support from government agency can be proven when Mudim attended various

courses organized by the Government such as MARDI, MARA, MADA, FAMA and SIRIM

to establish Mudim in market. Mudim also participated in Expo organised by the relevant

parties in any place such as Expo MIHAS in Melaka, IAT Expo at the Putra World Trade

Centre in Kuala Lumpur and ALL-Expo in Serdang, Selangor.

For indirect marketing, from our interview, we found that their products not only has

been marketed in the Malaysia but also has been introduced in overseas like Egypt, Brunei,

Indonesia and Singapore indirectly by the unofficial agents who is the students that further

their study there. The students will bring along the Mudim products in the huge quantity for

their self and also they will sell it to their friends there.

20 | P a g e

[ ] BPMN 3143

The strategy we can use is Improved their marketing through the various media. This

can improved the demand of product Mudim. The Mudim also can gain more advantages

through their strength and opportunities in this strategy, by doing strategy like that, it would

allow Mudim became better in the market.

8.3 W1O2 - Increase Indirect Marketing

The point in this analysis is between the affordable price of the products and competition

with other firms. In this case, Product Development Strategy is the suitable strategy to

minimize threats. Mudim can develop new products for existing markets or for new markets.

Mudim produce a products with an affordable price compared to their competitors such as

Jalen and Habhal’s. But, we cannot deny the fact that there is a high competition with other

firms in the industry. In this situation, Mudim should develop new products in existing or

new markets which can make them compete with their competitors in food industry, which is

soy sauce industry.

8.4 S5T1 - Product Development Strategy

The point in this analysis is between less comprehensive marketing strategy and indirect

marketing. In this case, we recommend Mudim to increase their indirect marketing which is

through agent. Since Mudim had less comprehensive marketing strategy, they can minimize

this weakness through increase their indirect marketing. The agent for Mudim is their own

workers which is the lorry driver. They will deliver the products of Mudim and also

promoting the products indirectly. Mudim should add the amount for commission for the

agent, so that they will be more motivated to promote the products. Thus, through this

indirect marketing, it can minimize the weakness of less comprehensive marketing.

21 | P a g e

[ ] BPMN 3143

8.5 W3T1 - Improve Their Facilities

The one of the problems that Mudim have to face is their operation machine are not enough

to produce two products at the same time which is sauce and soy sauce.

One of the main threat of Mudim is the competition with others firms that also market

the same products likes sauce, soy sauce and vinegar. Besides, their competitors already

achieve variety of awards especially in term of quality standardization.

The strategy Mudim Company can use is improved their facilities which is provides

the machine for make production more effective and efficient. As a result, Mudim Company

can compete with their competitors and meet customer demand.

8.6 W2T2 - Aggressive Marketing strategy

The weakness of Mudim is they unable to meet customer demands. Therefore, they must try

to make a huge and positive change in term to maximize their production. Hence, they have

to make an investment which to buy a new machine that can maximize their efficiency to

produce their main product. When they have a new machine, they no need to wait for a week

to rotate the production of their output. So that, the suppliers will be able to meet the

customer demands.

If Mudim can meet the customer demands then the customer will not easily to change

their perception and behaviour towards Mudim products. Hence, they will keep buying and

using Mudim products. Directly, this will make sure that they still stick with their perception

and behaviour which be the loyal customers and use Mudim products.

Based on the combination of the two elements, we define that the best strategy that

the business should implement is aggressive marketing strategy. This is means that Mudim

should more concern about how to conduct marketing strategy inside and outside the

Malaysia. For instance, they can market the products through advertisement by using media

socials sush as, in television and radio.

22 | P a g e

[ ] BPMN 3143

9.0 Appendix

23 | P a g e

[ ] BPMN 3143

References

Bart, C. K., & Tabone, J. C. (1998). Mission Statement Rationales and organizationalalignment in the not-for-profit health care sector. Health Care Management Review,pp. 54-69.

Darbi, W.P.K. (2012). Of mission and vision statements and their potential impact onemployee behavior and attitudes: The case of public but profit-oriented tertiaryinstitution. International Journal of Business and Social Science, Vol. 3 (14), pp. 251262.

Johnson, G. and Scholes, K. (2002) Exploring Corporate Strategy: Text and Cases. Harlow,Essex: Pearson Education Limited.

Koumparoulis, D. N. (2013). PEST Analysis: The case of E-shop. International Journal ofEconomy, management and Social Sciences, 2(2), 31-36.

Mohamed Syazwan Ab Talib & Abu Bakar Abdul Hamid. (2013). Halal logistics in Malaysia: a SWOT analysis. Journal of Islamic Marketing, 5(3), 322-343.

Mullane, J. V. (2002). The mission statement is a strategic tool: When used properly. Management Decision, Vol. 40(5), pp. 448-455.

Orhan, G., Erdogan, D., & Durmaz, V. (2014). Adopting mission and vision statements by employees: The case of TAV Airports. Social and Behavioral Sciences, Vol. 150, pp. 251-262.

Porter, M.E. (1985). Competitive advantage: creating and sustaining superior performance.New York: Free Press.

Stovel, M. & Bontis, N. (2002). Voluntary turnover: knowledge management.Journal of Intellectual Capital, 3(3), 303-322.

24 | P a g e

[ ] BPMN 3143

25 | P a g e