Assignment

0|Page
Executive summary
The assignment is on Sugar Bun one of the global food companies in Malaysia. It has produced
the reason behind the company's success and the key reason is its innovative strategies. It also
discusses the ways by which the firm can expand its market in the global area. The Go-to-market
strategy has been suggested to the firm for its further expansion. Besides this, it also focuses on
the facts that show the potentiality of the firm to tap the new market by using cultural factors.
The company must recognize the cultural factors of the customers of the target market to tap the
market. Lastly, the current issues for the company have been discussed and suggestions are also
given to way out the firm from these issues. The sustainability approach has been recommended
to the organization to improve its product efficiency, which in turn resulted in an increment of
the organization's profitability.

1|Page
Table of Contents
Executive summary ....................................................................................................................................... 1
Introduction ................................................................................................................................................... 3
Content .......................................................................................................................................................... 3
The reasons behind the success of Sugar Bun in the food and entertainment business ............................ 3
Evaluate how Sugar Bun can expand its market further, especially in the global arena........................... 4
Analyze Sugar Bun's potential to tap a new market by utilizing cultural aspects. .................................... 5
Current issues faced by Sugar Bun and suggests new ways of developing new products ........................ 6
Conclusion .................................................................................................................................................... 7
Bibliography .................................................................................................. Error! Bookmark not defined.

2|Page
Introduction
Sugar Bun Company was established in the year 1979. The company uses to be a mild ice cream
parlor in part-time. Now they have come up with innovative food and beverage restaurant
Franchise. The Company has its presence in several nations such as east Malaysia, Australia,
Bangladesh, and Indonesia. The company is thinking of expanding its business in many other
nations too. In this paper, the various aspects regarding the company Sugar Bun will be
discussed. The issues that are faced by the company, then the strategies to expand in the
international market and many more are discussed in the paper. The business environments all
over the world are changing at a greater pace of time. So the company is thinking of developing
its business too, to reach greater heights. The main business of this company is in Malaysia so it
is not so much acquainted with other cultural aspects. The company is thinking of analyzing
other markets for entrance. That is also being mentioned in this paper. The incrementing rate of
globalization and the arrival of steadily superior technologies are the main instigators for the
changes. The globalization inspires the firms to think on a global perspective and spread out their
business in the abroad market. The Sugar Bun Company is one of the leading food companies in
Malaysia (Sugarbun, 2016). It also focuses on innovation and artistic ideas to develop its
business. The development of business is also getting more enhanced with the help of innovative
technologies and communication techniques. This technological support helps the company
Sugar Bun to get into the international market on a smoother note.

Content

The reasons behind the success of Sugar Bun in the food and entertainment business
Sugar Bun is the quickest service restaurant in East Malaysia. It is the place where everyone gets
mingled along with delicious food and entertainment. This is one of the positive factors for the
Sugar Bun industry. They deal with a great variety of food that is quite mouths watering. Their
range of products includes western fast food to Malaysian traditional dishes. Their plate is also
covered up by the Asian cuisine. It is their menu that is the main reason for the success of Sugar
Bun. Their menu is quite diversified and quite innovative which aim to attract millions of
millennial (ifranchisemalaysia, 2019).

3|Page
The story of Sugar Bun has initially started with a single outlet of fast food. The company after
undergoing numerous researches has developed its outlet. They have established about 92 of the
franchise in Brunei, Bangladesh, Malaysia, Australia, and Indonesia. However, the development
of Sugar Bun lies solely on the Datuk Joseph Ambrose Lee. One of the most efficient and
effective leaders is said to be the Datuk Joseph Ambrose Lee. He was the most inspirational and
motivational leader. With his supportive characteristics, the Sugar bun industry is in the topmost
position (Bdc, 2016 ). Both internationally and nationally the company has set an example of
success. Their success is also due to strong strategies and focused objectives. They aimed to
serve the country people with delicious food and producing innovative services and products. As
told they have a wide range of food such as bas beverages and pastries. It is worth mentioning
they have a delicious mouth-watering range of dishes which include pedas, oxtail assam, and
grilled tilapia. With their new range of foods, they get overwhelming and positive responses
from their customers. Along with their customers, they have also successfully targeted potential
customers. With the passing of each year, this popular food and entertainment industry is
dynamically growing (Sugarbun, 2018).

The company has also put its major focus on the latest system of Winco-Nixdoff. Further, the
company has upgraded its relationship with customer relationship management. The up-
gradation of the system has increased the performance of the business. The effectiveness and
efficacy in the system are thus maintained by the Sugar Bun industry. Apart from that, they have
made perfect utilization of the mass media strategies. They have employed the use of radio
advertising. They have thus, made the advertising very interesting and memorable. Their slogan
is “Best ingredients. Best Meal”. They have a secret for each of the pizzas. Their every pizza is
of marvelous quality. Even their pizzas are also traditional handmade type. Thus, their strategies,
menu and innovative ideas are the secrets to success. If one is trying to celebrate their holiday
then Sugar Bun is recommended (Wordpress, 2017).

Evaluate how Sugar Bun can expand its market further, especially in the global arena.
The worldwide marketing of Sugar Bun could be commenced through appropriate stress upon
leveraging the creation and practice of the company. The business thus becomes responsive
concerning the unique situation and difference within the countries. The business hence adopts
fresh responsibility for their business. The company portrays their advertising strategies in terms

4|Page
of the requirements and needs of the clients within the global context. The main company
should develop a strategy and a business plan to expand its business (Day, 2017). Then the
business can establish a beachhead team and view for the product readiness along with
organizational readiness. The company Sugar bun can establish a Go- to market strategy to
expand its business in a foreign land. The business should most important research about the tax
and finance readiness aspect along with the legal attributes for entering a new market in a foreign
land. By considering these small aspects the company will be ready to expand in the foreign land
(Brooks, 2019 ). The company should maintain corporate data for the proper governing. They
should solve issues such as immigration and shipping etc. The company should set a team that
will do market research and then sees if there is a high rate of the target market that will provide
profit to the company. After this, the company should prepare its budget to establish in the
global zone. Another aspect that should be maintained by the food company Sugar Bun is to
establish a close relationship with the local business to know about the way of doing business in
an individual nation according to the cultural expectations. For this, the company can build an
inter alliance team to foster a great kind of relationship. They should build a strategy that will be
compatible with the ecosystem of a confined business model (WONG, 2018 ).

Analyze Sugar Bun's potential to tap new markets by utilizing cultural aspects.
Sugar Bun's is one of the most popular foods and entertainment providers in Malaysia. The
organization is following the local cultures to enhance the experiences of the customers. The
organization is providing several types of international cuisines to meet the expectation of the
customers. The organization is operating its business activities very effectively in Malaysia.
However, the organization is intending to be a global leader in the food industry. The
organization is also trying to bring innovation to increase its viability (Kinsey, 2019). The
innovative ideas help the organization in its product development process. It is very important
for the organization to understand the local cultures. After evaluating the local cultures, the
organization can be able to provide quality food services to the customers (Martin, 2016). The
organization has to implement effective business policies for enhancement purposes. The
organization has to recognize the fooding habits of the Malaysian people. To understand the
fooding habits of the Malaysians, the organization has to understand the cultural aspects of those
peoples. The organization has grabbed several markets across the nation. The organization is

5|Page
very much involved in renovating its products. In the international field, the organization can be
able to enhance its brand image through effective and tasty foods (WONG, 2018).

The organization has seven types of businesses such as Sugar Bun Quick Service Restaurants
and Destination Centres, The Rising Sun Japanese Restaurant and Grill, The reef project Dance
Bar and Grill, BB Café, Gayana Island Resort, SugarBun Rewards, BONU Shopping Rewards
Programme. The main aims of these businesses are to engage the customers with the
organizational activities of Sugar Buns. These seven businesses are providing several types of
services and facilities to the Malaysians. The organization can open several outlets in every
corner of Malaysia (Rangwala, 2017 ). The main reason is that the organization is very much
aware of the tastes and preferences of the Malaysians. In Malaysia, multiple numbers of tourists
are coming throughout the years. The organization has to understand the tastes and preferences
of the tourists to expand its businesses. In this case, the organization has to develop its food
products as per the cultural aspects of the tourists (Anastasia, 2015). The organization is
preparing almost every type of cuisines to meet the preferences of the customers. However, it is
evident that the Malaysian peoples now prefer healthy products rather than junk foods. The
organization can put more focus on healthy food products to tap the new markets in Malaysia
(KRAMER, 2019).

Current issues faced by Sugar Bun and suggests new ways of developing new products
Sugar Bun has shown significant growth and developments in both domestic as well as
international market in the last few years but at the same time, the company is also going through
some challenging issues. Furthermore, the emerging issues impede the growth prospects of the
organization and the organization needs to reduce the impacts of these issues to maintain its
growth rate in the future. The most critical issues faced by the organization are a higher cost of
food material, increasing competition, lower profit margin and lower spending patterns of
cautious customers. The economic downturn impacts on the individual income and the buying
capacity of people. Besides this, the increment of the inflation rate puts pressure on the pockets
of the consumers (Lexology, 2018 ). The disposal incomes of the people are reduced and that
influences their buying behaviors. Currently, people are becoming more conscious and hence
lower spending behaviors have been observed in the market. However, Sugar bun with its
innovative products mix has been succeeded in the market but these emerging issues increase the

6|Page
concern of the organization. The company has to think about its profitability as the current
situation has reduced its level of profitability. The reducing profitability rate impedes the
sustainability quotient of the firm as profit is crucial for the sustainability of an organization. The
profit is an important part of 3Ps or triple bottom line of an organization. Furthermore, it can be
considered as the ultimate bottom line of an organization (Bursamalaysia, 2017).

In this context, the undertaken organization Sugar Bun should focus on increasing its
profitability with efficient marketing strategies (Peter, 2015). The company must put adequate
emphasis on developing effective marketing mixes to ensure the retention of its sustainability
quotient and continuity of its growth and development rates. Furthermore, the product mix is
most important in this matter. The company must focus on the development of more innovative
products to meet the needs of the customers and demand of the market (QLD, 2018 ). The
product strategy should adopt sustainability approaches so that the firm can produce sustainable
products. The sustainable approaches will support the firm to adopt sustainable procurement
strategy that will increase the cost-efficiency of the production materials. Besides this, the
operation and process efficiency will support the production efficiency, which in turn improves
the cost-efficiency of the products of the firm. Consequently, with cost-efficient products, the
profitability of the organization will also be improved (Resnick, 2017 ).

Conclusion
Sugar Bun's opens its first outlet in 1979. Since the beginning, the organization is servicing
quality food products and entertainment services to the Malaysian peoples. The organization has
achieved several milestones since its establishment. The organization is developing its food
products as per the changing behavior of the customers. The organization offers Western
cuisines, Asian cuisines and other regional types of cuisines to the customers (Businesstown,
2018 ). The organization invests a huge amount of money to promote its products and services.
The organization is also involved in entertainment-related services. The organizations are
preparing their products as per the cultural aspects of the local communities. The organization
has several loyalty programs for customers. The organization is running its loyalty program to
promote brand image. In Malaysia, the food habits of the Malaysian people are rapidly changing.

7|Page
Most Malaysian people change their tastes from junk foods to healthy foods. in this case, the
organization has to develop its products as the changing mind of the Malaysian peoples.

8|Page
Bibliography
Anastasia. (2015). Understanding Cultures & People with Hofstede Dimensions. Retrieved from
cleverism.com: https://www.cleverism.com/understanding-cultures-people-hofstede-dimensions/

Bdc. (2016 ). How to prepare your business for international expansion. Retrieved from www.bdc.ca:
https://www.bdc.ca/en/articles-tools/marketing-sales-export/exportation/pages/how-get-ready-
expand-abroad.aspx

Brooks, C. (2019 ). Going Global: How to Expand Your Business Internationally. Retrieved from
businessnewsdaily.com: https://www.businessnewsdaily.com/8211-expand-business-
internationally.html

Bursamalaysia. (2017). Quarterly report on consolidated results for the third quarter . Retrieved from
Bursamalaysia.com:
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=198925&name=EA_FR_ATT
ACHMENTS

Businesstown. (2018 ). 5 Steps to Take Before Expanding Your Business Internationally. Retrieved from
businesstown.com: https://businesstown.com/5-steps-take-expanding-business-internationally/

Day, D. (2017). 10 Key Steps To Expanding Your Business Globall. Retrieved from forbes.com:
https://www.forbes.com/sites/allbusiness/2015/03/04/10-key-steps-to-expanding-your-business-
globally/#90ff3123803c

ifranchisemalaysia. (2019). Franchise business opportunities & franchising information on Malaysia.

Retrieved from ifranchisemalaysia.com: https://ifranchisemalaysia.com/sugar-bun.html

Kinsey, A. (2019). Ways to Increase Market Shares. Retrieved from bizfluent.com:

https://bizfluent.com/info-7943223-ways-increase-market-shares.html

KRAMER, L. (2019). What Strategies Do Companies Employ to Increase Market Share? Retrieved from
investopedia.com: https://www.investopedia.com/ask/answers/031815/what-strategies-do-companies-
employ-increase-market-share.asp

Lexology. (2018 ). How to Expand a Business Globally: 3 Key Considerations. Retrieved from
lexology.com: https://www.lexology.com/library/detail.aspx?g=4acded04-ac85-494f-8f76-1a8c3b2abfb4

Martin. (2016). Global Marketing: Strategies, Definition, Issues, Examples. Retrieved from
cleverism.com: https://www.cleverism.com/global-marketing-strategies/

Peter, J. P. (2015). CONSUMER BEHAVIOR & MARKETING STRATEGY CONSUMER BEHAVIOR &
MARKETING STRATEGY. Retrieved from academia.edu:
https://www.academia.edu/6078770/CONSUMER_BEHAVIOR_and_MARKETING_STRATEGY_CONSUME
R_BEHAVIOR_and_MARKETING_STRATEGY

9|Page
QLD. (2018 ). New product development strategy. Retrieved from business.qld.gov:
https://www.business.qld.gov.au/running-business/growing-business/becoming-innovative/developing-
products/new-products/strategy

Rangwala, M. (2017 ). 3 tips for expanding your business globally. Retrieved from yourstory.com:
https://yourstory.com/2017/04/expanding-your-business-globally

Resnick, N. (2017 ). 4 Tips for Expanding Your Business Globally. Retrieved from entrepreneur.com:
https://www.entrepreneur.com/article/289496

Sugarbun . (2016). About Sugarbun . Retrieved from sugarbun.com: http://www.sugarbun.com/about-us

Sugarbun. (2018). Sugar Bun. Retrieved from sugarbun.com: http://www.sugarbun.com/

WONG, J. (2018). SugarBun on expansion mode. Retrieved from thestar.com:

https://www.thestar.com.my/business/business-news/2018/02/26/sugarbun-on-expansion-mode

WONG, J. (2018 ). SugarBun ventures into new phase of expansion. Retrieved from thestar.com:
https://www.thestar.com.my/business/business-news/2018/12/17/sugarbun-ventures-into-new-phase-
of-expansion

Wordpress. (2017). What is Sugar Bun Food Menu. Retrieved from wordpress.com:
https://secretmenuinfo.wordpress.com/2017/01/20/what-is-sugar-bun-food-menu/

10 | P a g e