Business Strategy: Company Case Report Yeo’s Malaysia Company Yeo Hiap Sang, also known as Yeo’s, is an investment holding and also a soft drink manufacturer based in Malaysia and Singapore. The company was founded in 1900 by Yeo Keng Lian and at its humble beginning, it was making soy sauce out of the city of Zhangzhou, Fujian Province…
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It was also the first company to offer the well-known curry chicken in a canned form that was convenient. Currently, the company produces a range of Asian and non-Asian beverages. The Asia drinks come in a range of soy drinks, juice drinks and ready-to-drink teas. Specific brands include soya milk, black soy drinks, Laichi, sugar cane beverage, lemon tea, Winter melon, Chrysanthemum tea, Herbal tea and Green tea. In addition to beverages, the company also produces a vast range of culinary sauces. This include canned curry, condiments, culinary paste, spreads, instant noodles and vermicelli, and canned and jar food. These sauces do not contain preservatives. Yeo’s Malaysia delightful selection of refreshing Asian drinks is cherished in every occasion naturally. The company’s authentic taste is inspired by traditional drinks brewed in Asia and its range of thirst-quenching drinks is a delight to customers in many Asian and non-Asian households. The major markets for the company are Malaysia, Singapore, China, IndoChina, Hong Kong, North Asia, South Asia/Asia Africa, Vietnam, US, Canada, Europe, Australia and New Zealand. Macro environment analysis of the industry using the PEST (Political, Economic, Social and Technology) model. The political environment in Malaysia provides a safe and stable environment for Yeo’s operate in. There are regulations, tariffs and requirements international businesses must conform to operate in Malaysia. Even though the government is liberalizing its tariff regime progressively, products that are in competition with products that are manufactured locally are still highly protected and the company benefits greatly from this. Malaysia is a high export oriented economy and this provides an ideal economic environment for Yeo’s Malaysia to operate in because the company relies both on local and export markets. The country’s economy is well performing and its business regulations, tariffs and requirements are more favorable for local manufacturers. The government also identified food and agribusinesses as the nation’s key opportunities and this has motivated large companies like Yeo’s to develop strong brands and distribution networks. These have led to the accumulation of large economic resources for the company. There are also bilateral trade agreements with between Malaysia and some of its major markets like Australia and this makes business more favorable to the company. The Asian community and the larger Yeo’s market are highly conscious about health and strongly emphasize on safety. In Malaysia specifically, foods and beverages undergo the strict inspection to ensure they comply with the stringiest standards. The company uses no preservatives in its culinary brands and the most minimal in its beverages. Soy products are identified as healthy food. This has favored the operation of the company in Malaysia and ensured company’s products are on the highest demand. Yeo’s Malaysia has made and maintained a courageous commitment to technology. The company has undertaken a notable computer development and training as one its major human resource agenda. Analysis of the beverage industry using Porter’s five forces model Porter (1998) identifies five forces that influence an industry. These are supplier power, threat of new entrants, threat of substitutes, rivalry and buyer power. One of the things that present a threat
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