Teck Guan Perdana Case Study Summary

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Gross Profit Margin
The gross profit margin of Teck Guan Perdana Berhad is 7.59% while the gross profit margin of Oriental Food Industries Holdings Berhad is 21.55%. The revenue that earned by Teck Guan Perdana Berhad is very low after deducting the cost of goods. This shows that the company profit is very poor. According to Raul Avenir, the recommendation that can help the company to have the high gross profit margin is to increase the sales of the company. Teck Guan Perdana Berhad need to increase the volume of the sales of their company without the reducing the selling price or the growing of the cost of goods sold per unit so that they have a qualified profit or they can buy their needed goods in the future. Since the fixed manufacturing cost per unit becomes lesser as production volume becomes larger, Teck Guan Perdana Berhad’s growing sales volume can reduce the cost of goods sold. A reduction in cost of goods sold per unit which can increase the gross profit margin also be called as increasing in the volume of sales.
Net Profit Margin …show more content…

The income that earned by Teck Guan Perdana Berhad is very low after deducting the cost of goods sold compared to Oriental Food Industries Holdings Berhad. This shows that the company income is low. According to Tim Plaehn, the recommendation that can help the company to have the high net profit margin by analyzing the customers. Teck Guan Perdana Berhad need to reduce the prices in the company and the prices must be attractable to the customer so that customer has the satisfaction to buy things form Teck Guan Perdana Berhad. Teck Guan Perdana Berhad also must provide a good services and products to their customers to fulfill their customers’

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