Mudim Zakaria Food Industries Sdn. Bhd.

is one of Malaysia's well-known manufacturers of

halal and high-quality products. Mudim Zakaria Food Industries Sdn. Bhd possesses the four
strategic resource attributes, one of which is the company's financial strength. Mudim is said
to have a fantastic firm with a strength of assets of RM 300,000.00. Furthermore, the
company began with RM 10,000.00 and has grown to a significant stake over the years.
Besides, the primary reason for the company's popularity among customers is the high
quality of products at a reasonable price. Furthermore, the price range is relatively low
compared to competitors such as ABC, Habhal, Jalen, MH Mohamad, Mahsuri, and many
more. Next, Mudim Zakaria Food Industries Sdn. Bhd also has good working relationships
with suppliers. Last but not least, the last attribute is the effect of innovation. The
organization's primary goal is to create a market through strategic planning and innovation.

According to four (4) of the PESTLE strategy, the challenges faced by Mudim Zakaria Food
Industries Sdn. Bhd are political, economic, sociological, and technological factors.

The policies and actions of the governments in which the company operates and is located
are referred to as political factors. Political and legal considerations are critical, particularly in
the food industry. It has the potential to have an indirect impact on the Mudim. The country's
political stability has a significant impact on the company's external environment. Mudim can
survive in the industry due to Malaysia's political stability, particularly in the north of
Malaysia, and all business processes can run smoothly. Next, government policies that
encourage the development of entrepreneurs provide Mudim with numerous opportunities to
expand their business. Mudim can compete with other food industry competitors thanks to
various types of government assistance, such as financial assistance. For example, FAMA
and TEKUN, in running their businesses, indirectly accelerates Mudim's business growth.
The recently implemented Goods and Services Tax (GST) affects all businesses, including
Mudim. When this new tax policy was implemented, Mudim sales decreased. In some cases,
small and medium-sized enterprises (SMEs) must close their doors.

Next, Economic factors are concerned with the economy's overall picture. The
macroeconomics of a country has a significant impact on Mudim's business. It takes into
account the gross domestic product as well as inflation. If the overall economy is not stable
and desirable, Mudim will not expand its business because it risks losing a significant
amount of money. The gross domestic product (GDP) measures the total market value of
goods and services produced by a country over a given period. The income per capita is one
of the economic factors that indirectly impact the Mudim. Malaysia's average per capita
income is moderate, allowing the Mudim to continue their business. It is because Mudim's
products are affordable to all customer segments. One of the economic factors is the cost of
living. As we all know, Mudim ruled over most of northern Malaysia, including Kedah and
Perlis. The cost of living in the northern areas is lower than in the rest of Malaysia.

The third factor is Sociological. Mudim products are suitable for everyone. People of all
ages, cultures, and socioeconomic backgrounds will use soy sauce, chili sauce, and vinegar
in their daily lives. It is not a luxury item used only by a small group of people. Social-cultural
factors are the most difficult to quantify because people's beliefs and attitudes are not easily
quantifiable. Demographics are also important in terms of social factors and differences in
consumer tastes and behaviors. Consumers in Malaysia's northern and southern regions
have distinct tastes and behaviors. Mudim created products with a variety of flavors to meet
its customers' demands and preferences. For example, only Kicap Manis, one of the three
types of soy sauce, is available in Malaysia's southern region. This is due to regional
differences in taste. Lifestyle, in addition to consumer preferences, has an impact on the
social-cultural industry. The villagers, who primarily use soy sauce in their cooking, make
Mudim survive in this industry. Furthermore, these people place more trust in Bumiputera
products than international products.

Lastly, the challenges faced by the company based on the PESTLE strategy is Technology.
The Internet and mobile technology are rapidly expanding in the market, and almost
everyone will come into contact with them shortly. Mudim could capitalize on this advantage
by utilizing technology to promote its products. Customers can obtain any information they
want from their websites, such as the types of products available and their prices. Mudim
conducted research and development (R & D) by utilizing technology to gather more
information to satisfy local tastes. Mudim was able to produce and market different products
based on customer demands and preferences by understanding each region of Malaysia
and other countries requested. The rapid changes in technology today have a broader
impact on Mudim. The use of advanced machinery in the operation process, for example,
has increased productivity. It can also help to reduce errors in the operation process. Mudim
also used electric power during the cooking process. This is one method of reducing
pollution caused by fuels such as gasoline and diesel. It has already been established that
Mudim values technological factors.

Using the Porter Five Forces, five strategies could be implemented to expand the market,
which firstly is threats of new entrants.
The possibility of new firms entering the industry also impacts competition. Any firm, in
theory, should be able to enter and exit a market. However, some industries have
characteristics that prevent new competitors from entering the market. The current food
industry, specifically the soy sauce industry, is a pure competition market in which many
competitors, such as Jalen, Habhal's, Adabi, Tirana, and others, dominate the marketplace.
A market with pure competition is typically easy to enter and exit. As a result, new entrants
impact the food industry, specifically the soy sauce industry.

The second is the supplier's bargaining power. The manufacturing industry requires raw
materials such as labor, components, and other supplies. If a supplier has significant
bargaining power, it can impact the manufacturing industry. They are selling raw materials at
a high price, for example. Mudim's suppliers may include soybean, chili, garlic, and other soy
sauce and chili sauce ingredients. Suppliers' bargaining power for Mudim products is
relatively weak because the raw materials required by Mudim are not unique and easy to
obtain. There are many competitive suppliers, and Mudim can easily find a new supplier if
the current supplier charges too high a price. Mudim, on the other hand, prefers to establish
and maintain long-term relationships with its suppliers, as this helps to ensure the quality of
raw materials purchased.

The bargaining power of the customer is the third of Porters Forces. A buyer's bargaining
power is the influence that customers or buyers have on the manufacturing industry. Buyers'
bargaining power is relatively high in a pure competition industry because companies are
usually price takers. Customers can easily switch to other companies' products because
many well-known brands produce soy sauce. Mudim recognizes the importance of the
customer and has taken specific measures to meet the needs of its customers.

Fourth is the threat of substitute products. Substitute products in Porter's model refer to
products from other industries. Mudim faces the threat of substitute products due to the
nature of the industry. Demand becomes more elastic as more substitutes become available,
as customers have more options. Oyster sauce is a possible substitute for soy sauce in the
soy sauce industry, but it does not appear to pose a severe threat to soy sauce.

Lastly, the fifth Porters Forces is the intensity of competitors' rivalry. Because, as previously
stated, the soy sauce industry is a pure competition market, it is highly competitive. It is
because most soy sauce recipes and ingredients are the same, resulting in a low level of
product differentiation. Thus, Mudim must set a goal of increasing its market share by
gaining a competitive advantage over rival companies such as Jalen and Habhal's. Mudim
was increasingly facing fierce competition, as many of its food manufacturing competitors
had improved their operating efficiency significantly.