Food Industry In Malaysia

Industry Analysis Malaysia has population about 30 Million citizens. That is the multicultural country where Malays, Indians, Chinese and many other ethnic groups live together. Malaysia has one of the best varieties of cuisines in the world due to the multiculturalism of the country. Malaysia’s food industry is rich in resources of tropical and agricultural. This might reflects diverse cultures in Malaysian society. The strong economic growth in the late 80's and early 90's contributed to major changes in consumer purchases and consumption patterns. The food industry in Malaysia is very developed and refined, it is dominated by small and medium scale companies. Malaysian government has recognize that the food processing industry as a priority

It affects the business operations and the decision making of the organization. Economic factors include interest rate, inflation rate, unemployment rate, and etc. These economic factors will affect consumers’ spending and purchasing power. Basically, increasing of interest rate and inflation rate will directly push up the price of products in food industry because the cost of raw materials will be increased. Declining of the unemployment rate will increase the purchasing power of the customers. Thirdly, sociological factor. It may affects the demand of company’s products by refers to the cultural and demographic aspects of the environment. For examples, social factor that may affect food industry are population growth rate, attitude to work, lifestyle choices and so on. As mentioned early, Malaysia has population about 30 million citizens, and the population growth rate is about 1.47%. Besides that, Malaysian workers lack performance culture and generally will spend half of their working hours on matters unrelated to their job. In other words, the workers are less efficient in carrying out their

Technology factor may affect the operation of the company, cost of the products, and the quality of the products. These can determine the barriers to entry and estimates the minimum efficient production level. Advance technology can reduce the cost while improving the quality of the products. By using advance technology, food industry can produce more products in shorter periods and don’t need worry about labors problems. This can increase the efficiency of productions and generates more profits. Better quality and packaging of products can attract more consumer to purchase the products. Moreover, we also using Porter’s Five Forces to analyze the industry. It is simple but powerful method used for us to understand where power lies in a business situation. By using this method, we can take fair advantage of a situation of strength, improve the weakness situation, and avoid taking wrong steps. Conventionally, it is used to identify whether new products or services have the potential to be profitable. Porter’s Five Forces includes threat of new entry, supplier power, buyer power, competitive rivalry, and threat of substitution. These are the five important forces that determine competitive power in a business