SWOT Analysis Of KBB Resources Group Berhad Malaysia

Question 1

1.1 Undertake a detailed SWOT analysis of KBB Resources Group Berhad Malaysia.

Strengths:

• Diversification of KBB into the manufacturing and marketing of all types of rice and sago sticks (vermicelli).

• Market leader in the vermicelli industry- commanding a 60% market share

• Budget committee controls in place to control costs and increase efficiency

• Functional organisation structure, e.g. production, marketing, accounting etc. that contributes to the organization’s market success and profitability

• Existing plant with excess operating capacity to produce and package Vermicelli and other Vermicelli starch ingredients.

• Listed on the Kuala Lumpur stock exchange

Weaknesses

• Profitable growth of the company a major concern

• Financing available through local banks

• More than 300 million people living in the Middle East – huge market potential

• High purchasing power of households in the UAE also a demand for high quality instant food

• Asians in New Zealand 9.2% of total population – account for 12% of population in Australia

• Free trade agreement between New Zealand and Malaysia will further liberalise and facilitate trade in goods, services and investment.

• Increased demand for noodles in Australia

• Growing population, better infrastructure and foreign investment in Fiji

• Growing importance of Pacific countries

• Exporting to Australia, New Zealand and the UAE

• Network relationship – Malaysian High Commission and links which could bring in new buyers

• diversify - cakes, pastries

• New market – middle and low-income young customer segment

• Direct exporting – higher costs due to tariffs and non-tariff barriers

• Delays due to labelling and packaging standards not met – language requirements

• Delays due to weather conditions

• Loss of product and container liners – Somali pirates in the Gulf of Aden

• Loss of shareholders due to lack of MD’s strategic