Executive Summary

Hup Seng Industries Bhd. (HSIB) was incorporated on 4 October, 1991 and was later listed on
the Main Board of Bursa Malaysia Securities Berhad on 2 November, 2000. HSIB has three
(3) subsidiaries companies namely, Hup Seng Perusahaan Makanan (M) Sdn. Bhd.(HSPM),
Hup Seng Hoon Yong Brothers Sdn. Bhd. (HSHY), and In-Comix Food Industries Sdn. Bhd.
(In-Comix). HSIB is an investment holding company, in which its subsidiary
companies engage in the manufacture and sale of biscuits and confectionery food items. A
business strategy report is prepared to analyse Hup Seng based on Strategic
Management Process. First and foremost, this report begins with Hup Seng's vision, mission
and corporate social initiatives over the years. For the corporate social initiatives, Hup Seng had
contributed their responsibilities in four groups which are workplace, community,
environment and marketplace. The second part of this report is external environmental
analysis on Hup Seng. PEST analysis and Porter's Five Forces Model have been used
to evaluate Hup Seng's external environment that affecting its performances throughout
the years. PEST analysis is an evaluation on political factors, economic conditions,
sociocultural forces and technological factors that affect Hup Seng; whereas Porter's Five
Forces Model is used to assess the five competitive forces which are competition from rival
sellers, potential new entrants, producers of substitute products supplier bargaining power and
customer bargaining power. Next, internal environmental analysis also has been included in
this report. For such purpose, SWOT analysis and 3-year Financial Analysis on Hup Seng's
financial statements for the years 2014, 2015 and 2016 has been applied. SWOT analysis is
used to determine the strengths, weaknesses, opportunities and threats of Hup Seng. For
financial certain important financial ratios has been calculation. For example, profitability ratio,
liquidity ratios, leverage ratios and activity ratios. Moreover, in order to determine the
core competencies of HupSeng, VRIN analysis has been used to assess the its resources
and capabilities to determine what is Hup Seng's strategic resources and capabilities. Based on
the external and internal environmental analysis done, strategic issues that would influence
Hup Seng's performances have been determined. Issues such as rising cost of raw materials due
to GST implementation, low share in China market, lack of growth margin f o r H u p
Seng's core mature product and highly competitive
market.