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The financial condition of the Hwa Tai is also presented;

Category: Business & Management Paper Type: Report Writing Reference: N/A Words: 1100


        It also shows that the overall performance of the organizations is good but it cannot generate sufficient revenue that maintains their position in the market and also enhance their market share.

        The Hup Seng is very well reputed corporation but as compare to Hwa Tai and cocoa land its worth is less in the market and also it generates less revenue and less market share. The main issue regarding this is that the performance must be determined according to market demand and customer requirement. The overall performance of the Hup Seng is good but still, a room of improvement exists in the company and with this, it also improves its production, manufacturing and its sales through the better distribution channel and enhances its production capacity.

            Financial performance present that how much sales are produced by the organization and it seems that company is not generating enough revenue as compare to its competitors and it must follow its benchmark companies and also check their financial strategies that help for the Hup in future and also make its revenue better in future.

Problems of Hup Seng

        There is a various problem related to the various issues that are occurring in the Hup Seng Industries. All of these problems can explain in such manners;

Lack of Human talent of Hup Seng

        In the development of the company the human capital plays an essential role, therefore, management of the Hup Seng is paying less attention towards the recruitment of the fresh and capable graduates. They are not offering any trainee programs for fostering the more talent in their management team.  Due to this Hup Seng can face the employee turn over the problem in the long run and due to the, there can be a shortage of human capital.

Pay attention to new product  of Hup Seng

        Hup Seng is paying attention to the publicity of the new products. Due to this trend, they divert their attention from their accurate products that are in trend as; ‘cream cracker’. In the market, for several years the cream cracker is putting to improve their product sales. For improving the sales of their products they are investing incentive strategy such as; bundle of packages, price, and promotion.

Higher selling price of Hup Seng

            Hup Seng engage is engage in selling their products at comparatively higher prices as compared to their competitors. If the example of the ‘cream cracker’ will be considered than this product is selling by  Hup Seng at RM4.00 meanwhile another product of another company with the name of golden cracker’ is selling at 3.50-3.75. Such kind of discrepancy in prices can be problematic for Hup Seng because it enforces to the customer to switch brands.

Opportunities of Hup Seng

There are various opportunities for Hup Seng due to which Hup Seng is growing in the market. These opportunities are;

Export of Hup Seng

            For earning the revenue, Hup Seng is not only depended upon their domestic customers. It also engages in exporting its products in international markets. Furthermore, products of Hup Seng are considered as universal compatible products. Hup Seng is seeking for expanding their export operation in various other countries for generating more revenues. In 2011, Hup Seng proved their self in international markets.

Loyalty of Public of Hup Seng

        Another greatest opportunity that had Hup Seng is related to the loyalty of the public. In 2011, the total dividend of RM 30 million paid by the RM 30 million and it enhanced to 36 million at the end of 2012. This kind of figures refers to the positive sign for the public for indicating that the company has good growth in the markets, and it will improve in upcoming financial years.

Encouragement of export activity by Government

            One of the most important opportunities which occur in Hup Seng that is related to government rules and regulations. These all are in favor of Hup Seng and Government is encourages to Hup Seng for exporting their products in international markets. That’s why Hup Seng is moving on the track that is going towards the exports of products from the last several years.  Currently, Hup Seng is exporting its products in more than 40 countries.

Conclusion on Hup Seng

            By summing up entire discussion it has been observed that Hup Seng is one of the well-known firms that are producing foods and beverages. It has been observed in this paper Hup Seng has multiple channels of distribution and also has a very competitive environment but still, a room of improvement exists in the company. This company is engaged in to produce such a product that can be share at any time and at any place. It applies an effective sale strategy and follows a model that “quality is our promise”.  The entire national and international market has been captured by the Hup Seng. The Hup Seng also capture the market at domestic and international level. With best selling and premium products, the group set up a program with effective promotional activities.

            The Hup Seng is analyzed in these reports by analyzing the various departments and segments of Hup Seng as market analysis the Hup Seng is also performed in this paper by which it has been concluded that the sales team of the company also working a lot to capture the market share through improving earning, increase distribution points and promote the products. By analyzing the financial performance of Hup Seng it has been observed that the financial performance of the Hup Seng is not as good as compare to these two companies. The growth of the Hup Seng is very good but as compared to its benchmark or competitors.

                There are the various problems that are considered as the major cause of low growth of the Hup Seng these problems are; lack of Human talent, pay attention to new product and higher selling price. By overcoming all of these problems Hup Seng can enhance their growth in both national and international markets. There are few opportunities for Hup Seng that are a major reason of the growth of the Hup Seng and these opportunities are; export of Hup Seng, the loyalty of Public and encouragement of export activity by Government. Management of the company must be the focus on all of these opportunities for continuing the growth of the Hup Seng. 

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