School Of Architecture, Building & Design 

Foundation In Natural & Built Environment 

Presentation Title  :  

Research Assignment  Report (Chinese Herbal Medicine Shop) 

Group Members :  

Name  Presentation / Research Report Roles 

SEET TIONG HONG  Overall Checking 

NGIENG TIEN YUNG  Brief Bio Of Businesses 

TERENCE TAN   Reference 

LING SUE ER  Comparative Analysis 

OOI YIN JI  Appendices 

TAN MING HOWE  Design and Video 

DANIEL SONG  Recommendation 

LILLIAN TAN AI JUN  Conclusion 

 

English 2 [ELG 30605] 

Lecturer : Cassandra Wijesuria 

Submission Date : 1st June 2015 

   

Table of Contents 

No.  Title   Page Number 

1.  Artistic Cover  1 

2.  Cover Page  2 

3.  Table of Contents  3 

4.  Summary  4 

5.  Description Of History Of Business  5 ­ 6 

6.  Research Report  

A. Brief Bio Of The Businesses B. Comparative Analysis 

7 ­ 17 

7.  Conclusion  18  

8.  Recommendations  19 ­ 22 

9.  Bibliography  23 

10.  Appendices  24 ­ 39 

11.  Minutes Of Meeting  40 ­ 47 

12.  References   48 ­ 49 

        

   

   

SUMMARY  This report is a comparative analysis of two Chinese medical herb businesses in different                           geographical locations. The chosen industry is known to have an uninterrupted history of                         development dating back to thousands of years, in China and other parts of the Far East. The                                 selected Chinese medical halls are Poh Aun Tong Medical Hall in Georgetown, Penang and                           Huah Shan Medical Hall in Klang Valley, Selangor. Interviews have been conducted in each of                             the respective medical halls in order to obtain further information from both businesses. The                           collected information has been analyzed and justified through research carried out with reliable                         sources in reference. It is concluded that Huah Shan Medical Hall is more commercially                           successful than Poh Aun Tong Medical Hall due to a greater annual revenue, a higher number of                                 customers and also, a wider variety of goods provided. Moreover, several impactful                       recommendations such as hire more personnels, advertising and so on that could be undertaken                           by the businesses in order to improve their competitive edges have been included into the report                               based on our careful analysis so that the businesses could compete in the market with  their full potential.  

                                  Huah Shan Medical Hall                                  Poh Aun Tong Medical Hall 

  

    

   

HISTORY OF THE TRADITIONAL CHINESE MEDICINE (TCM) INDUSTRY   

 

The origins of Traditional Chinese Medicine (TCM) can be traced back at least five                           thousand years ago from the ancient China, making it one of the oldest and most long­standing                               health care systems in the world. In the intervening millennia, the practice of Chinese herbal                             medicine and TCM has developed and matured to become what it is today ­ a natural and holistic                                   system of primary health care that has been used by people from a wide range of cultural and                                   social backgrounds to effectively treat different chronic and acute health problems.  

 

According to the history of China, the first traditionally recognized herbalist is known as                           Shennong, a mythical god­like figure, who is said to have lived around 2800 BC. He allegedly                               tasted more than a hundred types of plants and imparted his knowledge on the medicinal                             properties of plants to his people. All his research and experimentation on medical herbs had                             been recorded in a book named Shennong's Materia Medica, which is known to be the earliest                               completed Chinese pharmacopoeia reference. 

  Over the millennia, the ancient Chinese people have used themselves as guinea pigs to                           

continue testing different types of plants for their medicinal properties. The accumulation of                         practical experiences had strengthened their understanding on pharmacological category,                 toxicity, and lethal dosage of different herbal plants. As to this day, it is known that more than                                   three hundred types of herbs that are commonly used in the modern society today are found                               written in the historical record. According to the modern Chinese clinical studies, these herbs                           functions to not only increase the effectiveness of modern drug treatments, but at the same time                               reduce their side­effects and also serve as an alternative or replacement for some western drugs                             and medical therapy (Dharmananda, 1996). 

  Besides, with the succession of trading systems dominating the market between China and                         

India back in the past, TCM had been introduced to numerous places over Southeast Asia by the                                 Chinese and other oriental immigrants. It happened long before the independence of Malaysia                         whereby during the time which our motherland was still known as “Tanah Melayu”. In the 19th                               century, the increased population of Chinese immigrants to Tanah Melayu had highly exposed                         the locals to an exchanged cultures, tradition, knowledges and influences from China. Hence,                         this is when and how Chinese medical herbs were brought in and established in the place to                                 where we are living in today. Pharmaceutical practices of TCM are then being handed down                             from generations to generations until today, the industry has seen growth in different places                           across the country.   

   

In a nutshell, traditional Chinese medicine plays a very important part in the history of                             medicine. Understanding TCM through a historical context gives an insight to this ancient form                           of medicine and also establishes its validity as a healthcare system. 

  

       Shennong as depicted in a painting in 1503,  tasting different types of plants (left) Shennong's Materia Medica (right) 

        

  

   

BRIEF BIO OF BUSINESSES  

A) Poh Aun Tong Medical Hall, Penang. 

Poh Aun Tong Medical Hall is located at 125, Campbell Street, 10100, Georgetown, Pulau                           Pinang, and is a small­scale family business. They are a traditional chinese pharmacy selling                           traditional chinese herbs besides providing health­care consultation services. The pharmacy was                     founded in 1965 by Mr. Chan Swee Foo and was operated single­handedly by himself. Ms. Chan                               Soo Sum, his only daughter, started helping him at the age of 22 and managed to learn most of                                     the herbology­based knowledge from him. Ms. Chan officially took over the business in 1990                           and has been running the shop since then. She does not have any employees to help her as she’s                                     able to cope with the workload, and because employees would need certain traditional Chinese                           medicine (TCM) licenses in order to work in the hall.  

Poh Aun Tong provides services that most of the pharmacies seem to be lacking in which                               chinese herbs could be pre­decocted or decocted by Ms. Chan so that customers are able to get                                 the most out of the herbs as she understands that her customers might be very busy or lacking in                                     knowledge on the decocting of herbs. The majority of her customer are customers who have                             patronised this business for many years. According to Ms. Chan, there will be no more than 10                                 customers visiting her shop daily and that most of her customers are adults and senior citizens.                               She believes that sooner or later, TCM will be substituted by Western medicine. Furthermore,                           there has been no changes or developments in her family business as she thinks that she will                                 have to retire in few years time and her only intention is to provide her services to the residents                                     of Georgetown.   

   

B) Huah Shan Medical Hall, Klang Valley. 

 Huah Shan is currently located at No.33, Jalan USJ 10/1E, 47620 Subang Jaya, Selangor Darul                             Ehsan. They are a modern chinese pharmacy which provides health­care consultation services                       and also sells traditional chinese herbs. Huah Shan’s main branch is located in Taman Megah, SS                               2 where Mr. Lee worked at for 8 years. The main branch was founded in year 1985 by Mr. Lee                                       Lap Man and was operated single handedly by himself. Since young, Mr. Lee desired to become                               a chinese physician mainly due to his strong TCM background and his father’s influence, who                             was also a Chinese physician. Today, there are a total of ten employees being employed to help                                 him manage two of the shops. He runs his business in such a way that he will diagnose patients                                     and delegate that his employees prepare the medicines or herbs to the patients based on the                               prescriptions issued by him.   Moreover, Huah Shan provides services such as acupuncture and cupping therapy. Unlike the                         other modern chinese pharmacies whose business models are money­driven as they are more                         focused on processed and packaged products. Surprisingly, their best selling products are herbal                         soup packs and dry herbs such as Bai Qu Cai. Besides that, utensils meant for decocting chinese                                 medicine are being sold here. The price range of their products is as low as RM 1 up till RM                                       3000. According to Mr. Lee, the minimum capital needed to start this TCM business amounts to                               RM 200,000. An average of 20 customers are expected daily and 30 customers during peak                             seasons such as durian harvest seasons. Most of his customers are adults and senior citizens. Mr.                               Lee believes that TCM will not be substituted by Western medicine in the future as TCM has                                 centuries of historic culture and believes that every genre of medicine has its own benefits.    

   

Similarities & Differences Of Both Business  

Poh Aun Tong Medical Hall 

Similarities  Huah Shan Medical Hall 

­ Short­term  Future Plan  ­ Short­term 

­ Local Customer ­ Senior Citizens 

Targeted Market  ­ Local Customer  ­ Senior Citizens 

  

Poh Aun Tong Medical Hall 

Differences  Huah Shan  Medical Hall 

Founder  

­ Mr. Chan Swee Foo  

History  

­ Emigrant from China  

­ Took over by Ms. Chan 

­ Operate single­ handedly 

  

Founder & History  Founder  

­ Mr. Lee Lap Man    

History  

­ First shop in SS2 ­ Chinese Physician Father ­ Determination to helping 

the poor  

­ 125, Lbh Campbell, 10100 Georgetown, Pulau Pinang 

Location  ­ No.33, Jalan USJ 10/1E,47620 Subang Jaya Selangor Darul Ehsan. 

­  Current Branches  1  

­  Workers  Ten 

­ Chinese Herbs  

Types of Products Sold & 

Services 

­ Packaged Herbs ­ Utensil  

 

­ Pre­Decocts Herbs  

Services  ­ Acupuncture ­ Cupping Therapy 

   

­ Daily ­ 10 am to 7.30 pm 

Business Hour  ­ Monday ­ Saturday ­  9 am to 8 pm 

Second generation is currently operating the 

business 

Business Operation  Owner is an experienced Chinese physician. 

 

Around 10  Number of customers  Around 20  

­ Internet blogs ­ Newspaper articles 

Media  None 

­ Old signboard ­ Antique cabinets  

Shop Layout & Atmosphere 

­ Air­Condition ­ Tempered Glass 

Around RM 180,000  Annual Revenue  Around RM 400,000 

       

           

   

Comparative Analysis Between Poh Aun Tong Medical Hall &  Huah Shan Medical Hall  

 I ­ Number of Competitors  Poh Aun Tong Medical Hall, which is located at George Town, Penang has only 2 top                               competitors which are Cheng Woh Medical Hall and Kean Aun Hoe Medical Hall. On the other                               hand, Huah Shan Medical Hall has 3 top competitors which is Hai O, Eu Yan Sang and Herbs                                   and Food.  II ­ Brief Description Of Competitors  Poh Aun Tong Medical Hall, Penang  Although there are many Chinese medical halls in Penang, Ms. Chan Soo Sum knows very well                               who her competitors are. In the fore, Cheng Ho Medical Hall is the strongest competitor among                               all, as they have been established for more than 80 years and has built long­term client                               relationships. They provide over 500 different formulas of herbal soup, desserts and teas recipes.                           Their best selling products are bird’s nest, packaged anti­aging supplements and traditional                       Chinese herbs. Cheng Ho Medical Hall believes that people respond to incentives, hence                         improves customers’ demand on products as they offer free delivery service for customers who                           purchase products worth RM100 and above. To stay in the game, they also has their own official                                 website to gain a bigger market share as the website provides convenience to the customers.  Secondly, Kean Aun Hoe Medical Hall was established in year 1956. They are a family business                               committed to provide friendly and trustworthy service to their customers. Their main products                         are packaged ‘Penang Bak Ku Teh’ and Cordyceps Flower Soup Base. Both of the products have                               received many positive feedbacks from local and international customers.         

   

Huah Shan Medical Hall, Selangor  On the flip side, it’s much tougher to operate a Chinese medicine hall in Selangor as the                                 competitors are more aggressive in terms of marketing and expansion of businesses. Based on                           Mr. Lee, Huah Shan Medical Hall has three top competitors around the area. Firstly, Hai­O                             Enterprise Berhad which was established in 1975, and owns over 70 branches nationwide. They                           offer a wide variety of complementary medicine, health­care products and much more. They                         employ professional herbalists in every branch to advise their customers on herbs. Besides,                         Hai­O Enterprise Berhad also has their own in­house brands which are recognized                       internationally. They only import patented products that are approved by the Ministry of Health.  Secondly, Eu Yan Sang which started as a small Chinese medicine hall was established in 1879                               and has built an empire of over 300 retail outlets globally. Eu Yan Sang provides more than 1000                                   types of quality traditional Chinese medicines, health foods, packaged anti­aging supplements                     and much more. They offer over 300 varieties of products under their brand, Eu Yan Sang. In                                 order to increase customers’ demand, they also offers several kinds of special promotion for                           members. Furthermore, they intentionally increase their brand awareness by organizing many                     events locally and internationally such as the well­received Parenting Sharing Sessions, Natural                       Organic Party, Thank You Teacher Campaign and many more.  Thirdly, Herbs and Food Sdn.Bhd was established in 1981. They are a modern Chinese medicine                             hall dealing in chinese herbs, grocery, wines and packaged herbs. Their main products are bird’s                             nest, homemade Chinese herbal jelly and wines. They believe that in order to improve their                             products’ demand, incentive is a must for their customers as exemplified in their free member                             only monthly wine tasting sessions. Moreover, they also apply promotions on their groceries                         weekly as an incentive to potential customers.  

            Competitors of Huah Shan Medical Hall : Herbs N Food (left) and Hai­O (right) 

 

   

III ­ Competition Strategies  A) Poh Aun Tong Medical Hall, Penang  I) Advertisement   In order to increase the brand awareness of the business, Ms. Chan has been accepting interviews                               in order to feature in newspaper articles and blogs and both mediums have been receiving                             positive responses.  II) Services With their excellent services, Poh Aun Tong Medical Hall attracts many customers by word of                             mouth. Ms. Chan who is a Chinese physician gives prescriptions based on results from the                             measurement of her patients’ pulses. Moreover, Ms Chan also decocts herbs for those patients                           who are too busy with their jobs to do this on their own. She has a good understanding of her                                       patients’ health and needs.  III) Pricing All of the products are priced reasonably in accord to the market price. In order to increase                                 profit, she keeps the operating expenses low by reducing the utility expenses and by employing                             no personnel.   

  Authentic measurement tools chinese scale and chinese grinder 

    

   

B) Huah Shan Medical Hall, Selangor  I) Services Mr Lee has established close relationships with his customers by providing trustworthy services                         .He provides diagnosis based on pulse­measurement, acupuncture services, and cupping therapy.                     Nowadays, most of the Chinese pharmacies do not provide these services as their business                           models are profit­driven.  II) Pricing The price of a product is an obstacle for potential customers who wish to purchase products. If                                 the price of the product decreases, the quantity demand will be increased. Mr.Lee sets a slightly                               cheaper price compared to his competitors in order to take advantage of this principle. 

  

 Ms. Chan friendly and polite characters have been helping her in sustaining the business. 

     

   

IV ­ Obstacles Faced By New Firms  A) Poh Aun Tong Medical Hall:    There are some obstacles faced by new firms. For example, Poh Aun Tong Medical Hall claims                               that chinese herbs will eventually be replaced by modern medicine because the younger                         generations believe that modern Western medicine is more effective and reliable as compared to                           traditional Chinese medicine. Besides, there are more and more modern pharmacies emerging in                         the market, which leads to increase in competition. Based on the principle of economics in a                               monopolistic competitive firm, they are known that a greater number of competitors leads to a                             weaker pricing power. Moreover, new firms would face difficulties in the process of getting                           licenses in terms of time required as every type of herb has its own license. Furthermore, Ms.                                 Chan suggested that an experienced individual is needed in order to start the TCM business. Nowadays, new firms are                             required to install air­condition and tempered glass at the entrance due to hygiene reasons.  

B) Huah Shan Medical Hall explains :  

Huah Shan Medical Hall indicates that it is difficult to hire experienced individuals who have                             basic knowledge about TCM these days as most of people are looking for jobs that pay high                                 salary with lesser working hours.  In order to start a new TCM shop, it also requires huge start­up capital as compared to decades                                   ago. Besides that, Mr. Lee said that nowadays owners of new firms do not have sufficient                               knowledge and experience to operate the business successfully. Based on the principle of                         economics, the meaning of economies of scale is the firm’s ability to produce its goods at                               gradually lower cost over the long run. As such, new firms require some time to compete with                                 such prices. As established businesses already have some amount of customer loyalty, it’s very                           hard to attract customers to go for other medicine halls.  

       Mr. Lim’s right­hand man, Mr. Koh (left) and the supplier, Mr. Tan (right) 

   

V ­ Nature Of The Market  

The nature of the market for Poh Aun Tong Medical Hall and Huah Shan Medical Hall is                                 monopolistic competition as both businesses are operating in a market structure full of                         competitors selling similar but not identical products. Besides that, pricing power of                       monopolistic competition is weak as the firms cannot influence the prices of their products                           strongly because there are still many competitors who also hold influence on the pricing. If one                               firm were to independently manipulate product prices, customers would swarm to other firms                         who have not altered their prices. In order to maximize their profits, these business strive to                               differentiate their product from that of their competitors. Moreover, it is very hard for                           competitors to attract customers who have strong tendencies towards their preferred pharmacies.     

 Similar but not identical products from Huah Shan Medical Hall (left) and Poh Aun Tong 

Medical Hall (right)  

    

    

 

   

Comparative Analysis Summary Table   

Competitive Traits  Poh Aun Tong Medical Hall  Huah Shan Medical Hall 

1. Number of Competitors  

5 to 10 within the immediate area  10 to 15 within the immediate area 

2. Barrier to Entry (New Firms) 

High Barrier to Entry  

­ Advancement of western medicines  

­ Increase competition due to many emerging modern pharmacies 

 ­ No firm control on majority of raw 

materials needed to produce a product 

  

High Barrier to Entry  

­ Difficulties in hiring experienced individuals 

 ­ Huge start­up capital 

 ­ Difficult to attract 

customers from established medical halls 

  

3. Differentiated or Standardized Products  

Differentiated Products  

­ Rare traditional chinese herbs  

­ Pearl powder    

Differentiated Products  

­ Cooking Utensils  

­ Groceries  

­ Packaged anti­aging supplements 

4. Pricing Power   Price taker ­ Weak pricing power 

 ­ Causes the business have no ability 

to  charge the price higher than the market price unreasonably, lest customers will turn to other competitors 

 

Price taker ­ Weak pricing power 

 ­ Constrained to follow 

the market price determined by supply and demand 

5. Other Characteristics   Substitute goods ­ Modern Medicine 

Substitute goods ­ Modern Medicine 

6. Verdict   Monopolistic Competition  Monopolistic Competition 

   

CONCLUSION  Based on the comparative analysis, it has been concluded that Huah Shan Medical Hall in Klang                               Valley is more commercially successful as compared to Poh Aun Tong Medical Hall in                           Georgetown, Penang. This statement has been supported by evidences obtained through research                       and critical analysis based on economics principles.    Firstly, Huah Shan Medical Hall has two outlets, with their main outlet located at Taman Megah,                               Petaling Jaya and the second outlet being located in Subang Jaya, Klang Valley. As for Poh Aun                                 Tong Medical Hall, the business has continued to operate within a single outlet for a period of                                 more than 40 years. Hence, with 2 outlets with each operating at different locations, the amount                               of income and the business’s annual revenue figure of Huah Shan Medical Hall is reported to be                                 higher as compared to that of Poh Aun Tong Medical Hall. In addition, the average number of                                 customers who visits the outlet daily for Poh Aun Tong Medical Hall is estimated to be                               approximately 10 customers per day, whereas Huah Shan Medical Hall has twice the amount of                             customers as compared to that. Ultimately, a greater number of customers led to an increase in                               the revenues and therefore, the amount of profit generated annually tends to be higher for Huah                               Shan Medical Hall, resulting in a more successful commercialized business within the industry in                           comparison to Poh Aun Tong Medical Hall.   Secondly, besides having Chinese herbs as the main­selling products in both businesses, Huah                         Shan Medical Hall also provides a wide variety of goods such as packaged herbal soup recipe,                               organic food supplement, medical ointment, dry goods, snacks and more. On the contrary, Poh                           Aun Tong Medical Hall has shown a lack in variety of goods and products sold as the business                                   adheres firmly to their own principles and traditions such that Chinese medical herbs and                           ointment remain as their main and only focus in the market. As a result of product variation in                                   Huah Shan Medical Hall, consumers are provided with a wide range of choices and are able to                                 purchase according to their preferences instead of being bounded by limitation with only a single                             or two options. Hence, it is concluded that more customers can be drawn to the firm, thereby                                 creating more business opportunities to take place in Huah Shan medical store as compared to                             Poh Aun Tong Medical Hall.   In conclusion, Huah Shan Medical Store is more commercially successful than Poh Aun Tong                           Medical Hall due to the supporting reasons as stated above which includes a greater amount of                               income and business’s annual revenue, higher average number of customers visited daily and last                           but not least, a wider variety of goods provided.    

   

RECOMMENDATIONS   After the study was completed, it was determined that the businesses were lacking in specific                             areas, which hinders their ability to compete to their full potential in the market. The following,                               is a set of recommendations which can be undertaken in order to improve their competitive edge.  Poh Aun Tong Medical Hall, Penang.  A1 ­ Area Of Focus & Current Diagnosis :   Location & Accessibility The business currently only owns one outlet, which is located in the heart of Georgetown, where                               vehicular circulation is poorly organised. As such, customers may find reaching the outlet                         difficult. Also, given its position in the heart of the sprawl of the city, it can be difficult to find its                                         specific location. People who are unfamiliar with the outlet will find it hard to reach. This can                                 seriously hamper the potential the business has to expand in its market and develop.  A2 ­  Recommendation(s) Of Improvement :  Relocate The Outlet The option to relocate the only existing outlet is viable in the sense that moving it to a more                                     accessible and navigable area would allow the current pool of potential customers to be                           expanded. Perhaps a more accessible, suburban  area like Gelugor would be a good alternative.  Open Multiple Outlets This option would allow for the authenticity and novelty of the original outlet to be retained,                               while allowing for the business to become more accessible to existing and potential customers.   B1 ­ Area Of Focus & Current Diagnosis:   Brand Awareness & Distinctivity Generally, with medical halls as antiquated as the one we studied, brand awareness is almost                             totally reliant on word of mouth and brand loyalty. As observed, Poh Aun Tong is almost                               unknown to those who do not use its services, or buy its products. The closest this business is in                                     the way of advertising is a customised tote bag it distributes to those who buy products from its                                   outlet. The outlet is also indistinct from other shops in the vicinity, let alone other medicine halls.  B2 ­ Recommendation(s) Of Improvement:   Engage in Advertising  This manner of improvement involves the use of flyers, advertisements on billboards,                       newspapers, or any other form of mass media. This will raise awareness of the business, which                               will attract customers, driving profits higher while giving this business the edge over competitors                           who have not caught on. 

   

Distinctive Outlet Identity The business needs to ensure that the outlet is pronounced, and well defined amidst its                             surroundings, even among other medicine halls. This can be done through the use of noticeable                             signage, and a recognisable exterior  C1 ­ Area Of Focus & Current Diagnosis:   Cost of Operations & Profit Aforementioned facts have stated that the Poh Aun Tong Medical Hall is a small business, which                               has been established for a long time. Due to the obligation to tradition, as well as the desire to                                     preserve the original identity of the business, cost of operations has not been decreased in the                               areas of technological improvement, and stagnant business size.  C2 ­  Recommendation(s) Of Improvement:  Utilise Modern Technology Through the use of modern technology, this business can provide services, and produce medicines in a much more efficient manner, driving up profits indirectly. For example, through use of modern scales and weights, and industrial grade centrifuges  Grow the Size of the Firm This measure will allow the medicine hall to gain bargaining power, as suppliers are more obligated to provide better prices for larger firms. This in turn, decreases the cost of operations the business incurs. This is especially important in the purchase of supplies and raw materials, which this business engages in often.     Huah Shan Medical Hall, Klang Valley.     A1 ­ Area Of Focus & Current Diagnosis:   Product Variation & Distinctivity As of now, the reach of Hua Shan in terms of customers and market share may be limited, due to the fact that the products which are sold in Huah Shan are not distinct or varied from the products which are sold in other medicine halls, in the surrounding area. This reduces the ability of this business to perform at its full potential, as it has to constantly compete with the other medicine halls which are located at such proximity due to the fact that they all sell similar products.       

   

A2 ­  Recommendation(s) Of Improvement:  Variation of Products & Sales of Unique Commodities This measure involves acquiring different products, which are not available in the other medicine halls in the vicinity. This can be done by seeking different suppliers, who can provide rarer products for the outlet to sell. This will drive customers to Huah Shan, as it has a variety of products, which is not available elsewhere. This in turn, greatly increases the firm’s competitive edge.   B1 ­ Area Of Focus & Current Diagnosis:   Skilled Labour & Trained Medical Personnel Huah Shan is not simply a shop where traditional Chinese medicine is distributed, but also serves as a clinic of sorts, where one receives diagnosis and treatment for specific ailments. However, as stated. Huah Shan operates with the expenditure of very few staff and personnel. This causes certain problems, especially considering that Huah Shan cannot hire any applicant who wishes to work in the firm, but must carefully select staff who are knowledgeable in the area of traditional Chinese medicine. During peak seasons, they are understaffed, especially in the clinic, as only one practitioner is available for consultation and service. This can decrease the productivity of the firm.  B2 ­ Recommendation(s) Of Improvement:   Hire More Personnel The firm could remedy the situation aforementioned, through the employment of more trained personnel. This can be achieved by sourcing talent from training centers which specialise in traditional Chinese medicine, or colleges which offer such sources. This way, the firm is able to greatly increase productivity. For example, with the addition of more skilled staff, shop assistants can be replaced by knowledgeable staff who are able to advise customers on medication, or treatment, driving up the brand reputation and sales revenue. Also, by hiring more practitioners of traditional Chinese medicine, more patients can be treated as the workload is now spread out between more doctors.   C1 ­ Area Of Focus & Current Diagnosis:   Location & Outlet Size The current outlet is the only existing outlet that the firm owns and operates. The location of the outlet is not conducive for business, as there are at least three other traditional medicinal halls in the immediate vicinity, and countless more pharmacies. Besides that, Huah Shan has the ability and capacity to expand the business, and can take this measure in order to develop it. Finally, the outlet size may not be conducive in the short run if Huah Shan does grow, as the principle of scale constraint applies, where it becomes inefficient to expand the business within the constraints of the current outlet.  

   

C2 ­ Recommendation(s) Of Improvement:  Open Multiple Outlets  By opening more outlets and medical halls, Huah Shan stands to gain tremendously. This is understood in a threefold manner. First of all, by opening multiple outlets, the business will be able to gain more revenue as the sales potential increases due to the expansion of the reachable market. Besides that, by opening more outlets, Huah Shan does not need to directly compete with the many medicine halls in the direct vicinity of the existing outlet. It will be able to compete better. Finally, Huah Shan will be able to solve the problem of scale constraint if it does choose to expand. 

 

Huah Shan Medical Hall, USJ, Klang Valley  

 

 

   

BIBLIOGRAPHY 

1.  Batugal, P., Kanniah, J., & Oliver, J. (2004). Chapter 3­ Research : Initial Country 

Project Reports and Workplans. In Medicinal Plants Research in Asia (2nd ed., Vol. 

Volume I, pp. 125­126). Serdang, Selangor Darul Ehsan: Bioversity International.   

2. Chen, P. (1978). Traditional and Modern Medicine in Malaysia. The American Journal of 

Chinese Medicine Am. J. Chin. Med., 7(3), 259­275.   

3.  Wang, Z., & Xie, P. (1999). The Origin Of Medical Pharmaceutical and Hygiene. In 

History and Development of Traditional Chinese Medicine (Reprinted ed., Vol. 1, pp. 

24­27). Beijing: IOS Press.   

4.  Ho, P., & Lisowski, F. (1997). Chinese Medicine: An Overview of Its Concepts and 

History. In A brief history of chinese medicine (2nd ed., pp. 4­20). Singapore: World 

Scientific.   

5.  Hsu, E. (2001). Correlative cosmologies. In Innovation in Chinese medicine (Illustrated 

ed., Vol. 3, p. 121). Cambridge, New York: Cambridge University Press.   

 

 

 

 

 

 

  

   

APPENDICES  

This is a compilation of interview notes, documents and photos of both Chinese herbal medicine halls, as well as the background details of their competitors that were recorded in the process of investigating and comparing both businesses.   A) Poh Aun Tong Medical Hall, Penang.   I. Details of the business  

                         Shop sign of the business (left) and front view of the shop (right). 

 Interior view of the shop. 

 

   

II. Details of the owner  

 Current owner, Miss Chan.  

   

 Miss Chan’s business card. 

 

 Certificate of Miss Chan as a valid Chinese Physician.  

   

 Founder of the business, Mr. Chan Swee Foo (left) and his wife. 

 

 The books that were used by Miss Chan as references. 

           

   

III. Products & services provided  

 Main products sold: Chinese medical herbs 

 

 Poh Aun Tong sells herbs which are rarely seen as well. 

 

 There are also packaged products such as traditional chinese medicine and chinese ointment. 

   

 

Services provided: Prescription for the patients and herb decocting.  

 IV. Strategies of promotional advertising 

 

 Articles taken from both English and Chinese newspapers which promote the rare products 

and services provided by Poh Aun Tong.   

 Media report by China Press.com on 29 May 2013. 

   

V. Top Competitors  I. Cheng Woh Medical Hall, Penang.  

 Exterior and interior view of Cheng Woh.  

 

 Products sold by Cheng Woh Medical Hall include soups, teas, desserts and chinese herbs.  

          

   

II. Kean Aun Hoe Medical Hall, Penang.   

 Front view of Kean Aun Hoe. 

 

 They sell soups that were made by their secret recipes. The special Kean Aun Hoe recipe 

Penang Bak Ku Teh (left) and special Ginseng Soup Base (right).   

 Kean Aun Hoe Medical Hall sells valuable bird’s nest and herbs as well. 

   

VI. Documents  

 Printed interview questions. 

 

 Handwritten notes which were recorded during the interview process. 

   

    

   

B. Huah Shan Medical Hall, Subang Jaya.   I. Details of the business   

 Front view of the shop. 

 

 Closer view of the shop. 

 

   

II. Details of the owner.   

 The founder and current owner, Mr. Lee. 

 

 Above are license of Mr. Lee to run his business (left) and business card of Mr. Lee (right). 

 

 Mr. Lee refers to books to widen his knowledge about chinese medicine.  

   

III. Products or services provided.   

 Chrysanthemum is one of the main products as well.  

 

 Variety of chinese herbs available at Huah Shan Medical Hall. 

 

 They provide services such as cupping therapy and acupuncture. 

   

 

 Mr Lee uses these to provide a better understanding of the sickness to his patient.  

                         

   

IV. Top Competitors  I. Hai­O Enterprise Berhad.  

 Front view of Hai­O. 

 

 They sell various products which are traditional as well as modern one such as traditional 

chinese pills (left) and Bamboo salt drink (right).        

 

   

II. Eu Yan Sang.  

.  Front view of Eu Yan Sang (left) and surrounding area of the shop (right).  

 

 Chicken Essence and Bird’s Nest are the main products of Eu Yan Sang. They promote their 

main products by combining them into gift hampers (right) which are in a lower price.  

 Above are promotion advertisements of Mother’s day and Father’s day. They have very strong 

promotion strategies especially during the festival such as Chinese New Year. 

   

III. Herbs N Food Sdn Bhd.    

 Exterior view of the shop. 

 

 Packaged herbs are the main products of Herbs N Food.  

 They sell special products such as homemade honey drink, homemade chinese herbal jelly (left) 

and bird’s nest, snacks (right).  

   

V. Documents   

   Handwritten interview notes that the transcriber used to document the  interview process.  

     

  

   

Minutes Of Meeting (1)  

Date  28th April 2015 (Tuesday) 

Time  12.30 PM 

Venue  LT 7, Taylor’s University Lakeside Campus 

 Attendees:  

Name of group members  Tutorial Group  Role 

Seet Tiong Hong  Wednesday, 8am­10am  N/A 

Tan Ming Howe  Wednesday, 8am­10am  N/A 

Terence Tan Peng Ong  Wednesday, 8am­10am  N/A 

Ling Sue Er  Wednesday, 8am­10am  N/A 

Ooi Yin Ji  Thursday, 8am­10am  N/A 

Lillian Tan Ai Jun  Thursday, 8am­10am  N/A 

Ngieng Tien Yung  Thursday, 8am­10am  N/A 

Daniel Song  Thursday, 8am­10am  N/A 

 Minutes:   

No.  Activity  Details 

1.  Introduction  Discussed and made clear about project brief and submission requirements 

2.  Discussion of business  Discussed and decided to choose TCM business 

3.  Discussion of plan  Discussed and set a plan of how to progress (refer to Table 1.1) 

4.  Delegation of duties  Made clear about duties and details of duties and delegated to every member (refer to Table 1.2) 

5.  End  Meeting adjourned 

   

Table 1.1 : Schedule of progression  

Date  Action 

By 31.04.2015  Shops selection and interview appointment of the business at Penang 

02.05.2015  Interview of the business at Penang 

By 15.05.2015  Shops selection an interview d appointment of the business at Kuala Lumpur 

   

18.05.2015  Interview of the business at Kuala Lumpur 

  Table 1.2 : Delegation of duties  

Name   Role 

Seet Tiong Hong  Leader / Transport / Overall checking of report  

Tan Ming Howe  Video recording / Report writing 

Terence Tan Peng Ong  Interviewer / Report writing 

Ling Sue Er  Interviewer / Research /  Presentation slides 

Ooi Yin Ji  Research / Report Writing / Note­taker  

Lillian Tan Ai Jun  Research / Report Writing / Note­taker 

Ngieng Tien Yung  Interviewer / Research / Report writing 

Daniel Song  Research / Report writing 

          

   

 Minutes Of Meeting (2)  

Date  11th May 2015 (Monday) 

Time  11.00 AM 

Venue  Outside Library, Taylor’s University Lakeside Campus 

 Details:  

Meeting called by  Seet Tiong Hong 

Notes taken by  Ooi Yin Ji 

Subject  Regarding report writing and shops selection at KL 

 Attendees :  

Name   Tutorial Group  Role 

Seet Tiong Hong  Wednesday, 8am­10am  Leader / Transport / Overall checking  

Tan Ming Howe  Wednesday, 8am­10am  Video recording / Report writing 

Terence Tan Peng Ong  Wednesday, 8am­10am  Interviewer / Report writing 

Ling Sue Er  Wednesday, 8am­10am  Interviewer / Research  

Ooi Yin Ji  Thursday, 8am­10am  Research / Report Writing / Note­taker 

Lillian Tan Ai Jun  Thursday, 8am­10am  Research / Report Writing / Note­taker 

Ngieng Tien Yung  Thursday, 8am­10am  Interviewer / Research / Report writing 

Daniel Song  Thursday, 8am­10am  Research / Report writing 

    

   

 Minutes :  

No.  Activity  Details 

1.  Introduction  Brief of current progression 

2.  Discussion of situation  Discussed about current situation and problems addressed (refer to Table 2.1) 

3.  Delegation of duties in report writing 

Discussed about roles of each member in report writing  (refer to Table 2.2) 

4.  End  Meeting adjourned 

 Table 2.1 : Problems addressed  

Problems  Actions 

Rejected by every shops that we had contacted at Klang Valley 

Expand shops selection area and contacted more shops 

Incomplete information of competitors at Penang 

More research to be done 

 Table 2.2 : Delegation of duties in report writing  

Name  Role 

Seet Tiong Hong  Overall checking of report 

Tan Ming Howe  Artistic cover 

Terence Tan Peng Ong  References and Bibliography 

Ling Sue Er  Comparative Analysis 

Ooi Yin Ji  Appendices and Minutes of meeting 

Lillian Tan Ai Jun  History of industry and Conclusion 

Ngieng Tien Yung  Brief bio of business 

   

Daniel Song  Recommendations  

Minutes Of Meeting (3)  

Date  15th May 2015 (Friday) 

Time  3.00 PM 

Venue  Open air seating area, Level 2, Taylor’s University Lakeside Campus 

 Details:  

Meeting called by  Seet Tiong Hong 

Notes taken by  Ooi Yin Ji 

Subject  Preparation for trip to KL on 18th May 2015 

 Attendees :  

Name   Tutorial Group  Role 

Seet Tiong Hong  Wednesday, 8am­10am  Leader / Transport / Overall checking  

Tan Ming Howe  Wednesday, 8am­10am  Video recording / Report writing 

Terence Tan Peng Ong  Wednesday, 8am­10am  Interviewer / Report writing 

Ling Sue Er  Wednesday, 8am­10am  Interviewer / Research  

Ooi Yin Ji  Thursday, 8am­10am  Research / Report Writing / Note­taker 

Lillian Tan Ai Jun  Thursday, 8am­10am  Research / Report Writing / Note­taker 

Ngieng Tien Yung  Thursday, 8am­10am  Interviewer / Research / Report writing 

Daniel Song  Thursday, 8am­10am  Research / Report writing 

     

   

 Minutes :  

No.  Activity  Details 

1.  Introduction  Brief of current progression 

2.  Delegation of duties in interview session 

Discussed and assigned roles to each member in interview session (refer to Table 3.1) 

3.  Discussion of execution  Discussed about things to bring, transport arrangement, video shooting equipment (refer to Table 3.2) 

4.  End  Meeting adjourned 

 Table 3.1 : Delegation of duties in interview session  

Name  Role 

Seet Tiong Hong  Transport / Interviewer 

Tan Ming Howe  Video recording  

Terence Tan Peng Ong  Look for competitors 

Ling Sue Er  Interviewer  

Ooi Yin Ji  Look for competitors 

Lillian Tan Ai Jun  Note­taker 

Ngieng Tien Yung  Interviewer  

Daniel Song  Look for competitors 

 Table 3.2 : Discussion of execution  

Items  Details 

Transport arrangement  Seet Tiong Hong will be driving all the group members to KL 

Video Shooting  Tan Ming Howe will be preparing photography equipment 

 

   

 Minutes Of Meeting (4)  

Date  26th May 2015 (Tuesday) 

Time  1.00 PM 

Venue  LT 7, Taylor’s University Lakeside Campus 

 Details:  

Meeting called by  Seet Tiong Hong 

Notes taken by  Ooi Yin Ji 

Subject  Regarding report writing and presentation slides 

 Attendees :  

Name   Tutorial Group  Role 

Seet Tiong Hong  Wednesday, 8am­10am  Leader / Transport / Overall checking  

Tan Ming Howe  Wednesday, 8am­10am  Video recording / Report writing 

Terence Tan Peng Ong  Wednesday, 8am­10am  Interviewer / Report writing 

Ling Sue Er  Wednesday, 8am­10am  Interviewer / Research  

Ooi Yin Ji  Thursday, 8am­10am  Research / Report Writing / Note­taker 

Lillian Tan Ai Jun  Thursday, 8am­10am  Research / Report Writing / Note­taker 

Ngieng Tien Yung  Thursday, 8am­10am  Interviewer / Research / Report writing 

Daniel Song  Thursday, 8am­10am  Research / Report writing 

    

   

 Minutes :  

No.  Activity  Details 

1.  Introduction  Brief of current progression 

2.  Discussion of situation  Discussed about current situation and problem addressed (refer to Table 4.1) 

3.  Delegation of duties  Discussed and assigned roles to each member in interview session (refer to Table 4.2) 

4.  End  Meeting adjourned 

 Table 4.1 : Problem addressed  

Problems  Actions 

Report of second business not completed 

Every member agreed that the report need to be done by 30th May 2015 

Presentation slides not yet prepared  Some of the group members start working on it 

 Table 4.2 : Delegation of duties  

Name   Role 

Seet Tiong Hong  Presentation slides (layout) 

Tan Ming Howe  Report writing (artistic cover) 

Terence Tan Peng Ong  Report writing (references and bibliography) 

Ling Sue Er  Presentation slides (layout) 

Ooi Yin Ji  Report writing (appendices and minutes of meeting) 

Lillian Tan Ai Jun  Report writing (history of business and conclusion) 

Ngieng Tien Yung  Report writing (brief bio of business) 

Daniel Song  Presentation slides (design) 

   

 

References   

1. Kean Aun Hoe is a Chinese medicine shop in Penang. (2015, January 23). Retrieved May 

18, 2015, from http://www.keanaunhoe.com/#!address/cejz   

 

2.  Mark, & Reese. (2012, September 13). Season with Spice ­ an Asian Spice Shop: 

Spotlight on Spice: A visit to Cheng Woh Medical Hall ­ a Chinese Herbal Medicine 

Shop. Retrieved May 18, 2015, from 

http://blog.seasonwithspice.com/2012/05/chinese­alternative­medicinal­herbs.html  

  

3.  Reuters, T. (2014, July 27). Three ways small drug stores can beat big­box competitors. 

Retrieved May 18, 2015, from 

http://www.theglobeandmail.com/report­on­business/small­business/sb­marketing/custo

mer­service/three­ways­boutique­drug­stores­stay­competitive/article12468461/  

  

4.  Tok Keong, T. (2015, February 11). Hai­O Enterprise Berhad. Retrieved May 18, 2015, 

from http://www.hai­o.com.my/retailing.php   

 

5. Essays, UK. (November 2013). The Background Of The Company Hai O In Malaysia 

Business Essay. Retrieved May 18, 2015 , from 

http://www.ukessays.com/essays/business/the­background­of­the­company­hai­o­in­mala

ysia­business­essay.php?cref=1 

 

6. Essays, UK. (November 2013). Business Analysis Of Eu Yan Sang International Limited 

Business Essay. Retrieved May 18, 2015 , from 

http://www.ukessays.com/essays/business/business­analysis­of­eu­yan­sang­international

­limited­business­essay.php?cref=1  

 

   

7.  Soo Sum, C. (2015, May 2). History and Background of Poh Aun Tong Medical Hall 

[Personal interview].   

 

8.  Lap Man, L. (2015, May 18). History and Background of Huah Shan Medical Hall 

[Personal interview].   

 

9.  Ong, A. (2014, October 17). GST will be a bitter pill for traditional medicine. FMT 

NEWS. Retrieved May 19, 2015, from 

http://www.freemalaysiatoday.com/category/nation/2014/10/17/gst­will­be­a­bitter­pill­f

or­traditional­medicine/   

 

10.  Si Yan, Y. (n.d.). More traditional Chinese medical professionals be introduced to 

Malaysia: Experts. Xin Hua, p. 24. Retrieved May 19, 2015, from 

http://news.xinhuanet.com/english/2015­02/27/c_134023295.htm