TABLE OF CONTENTS

1 TABLE OF CONTENTS 1

1 INTRODUCTION 1
1.1.1 Strength 2
1.1.2 Weakness 2
1.1.3 Opportunities 2
1.1.4 Threats 2
1.2 7 Dimensions Analysis 4

2 RECOMMENDATION 5
1.1 Sun Zi’s Philosophy 1: Chapter 4 – Disposition of the Army 5
1.2 Sun Zi’s Philosophy 2: Chapter 1 – Detailed Assessment and
Planning 5
1.3 Sun Zi’s Philosophy 3: Chapter 6 – Weaknesses and Strengths 5
1.4 Sun Zi’s Philosophy 4: Chapter 7 – Military Maneuvers
Communication in Business 6
1.5 Sun Zi’s Philosophy 5: Chapter 6 – Weaknesses and Strengths 6

3 CONCLUSION 9

4 REFERENCES 10
 INTRODUCTION

Hup Seng Industries Berhad (HSIB), which has a meaning of “With Teamwork Comes
Success” in Chinese, was first established in 1958 as Hup Seng Co.. “Quality is Our Promise”
is the company slogan. The products of HSIB are Hup Seng Special Cream Crackers Cap
PING PONG, PING PONG Marie Biscuits, PING PONG Sesame Biscuits, Flying Fish and
Teddy and NATIRELL Oat Cookies. The business-level strategies Hup Seng focuses on is
cost leadership, by offering better price for products compared to other competitors. HSIB
conduct its business transactions via Business to Business (B2B) activities. Wholesalers and
retailers, such as Grocery store, Hypermarkets, Supermarkets, and Minimarkets. In order to
provide best services and deliver goods efficiently, HSIB has developed its own proud direct
logistics/distribution, connecting with outsourced logistic company and a network of
distributors in East Malaysia. Munchy’s and Hwa Tai are the biggest rival of Hup Seng
Industries Bhd. (HSIB).

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 STRATEGIC ANALYSIS

1.1.1 Strength
HSIN have a very strong brand recognition in the food industry which can builds a greater
customer loyalty. HSIB was established in year 1958, and has been brand guaranteed for
more than 60 years.
Other than that, HSIB has a wide geographic presence. They promote its international
presence in more than 40 countries. HSIB products are available in most of the supermarket
and hypermarket, retails, wholesale and convenience stores. This can build a strong
competitive advantage in the food industry.

1.1.2 Weakness
Weakness for HSIB is the declining of revenue. Its revenue has decreased from
RM71,958,121 to RM49,594,122 throughout the year 2018 and it due to increasing cost of
production. HSIB has to obtain the current value propositions of the products they offer.
Besides, the high turnover of employees also reflects in the weakness of HSIB as they do not
have the practice of keep on recruiting fresh graduate or new management team to the
company. The high turnover may cause the productivity decrease.

1.1.3 Opportunities
HSIB can increase its opportunities by lowering the cost of the company new products. It can
lower down the cost through third party retail partners or through social media.
Besides, customer preferences are changing very quickly nowadays. So, HSIB should
administer in the wider Consumer or Non-Cyclical sector instead of only focus on food
processing that included in the wider trends.
HSIB can do collaboration with other companies. Through collaboration, HSIB can reduce
the production cost by sharing administrative expenses with the company that it collaborated.
(Opportunities for Hup Seng Industries, n.d.).

1.1.4 Threats
Market saturation is a circumstance that product has become distributed within a particular
market. This trend is considered as an ongoing challenge for HSIB that fall under the
category of Food Processing. The major factor for this situation is that utilization of products

2
are slow in rural market compare to urban market. In fact, it cost HSIB more to serve
customers in the rural area than urban customers.
Other than that, margins will decrease because younger generation are less brand loyal.
Younger generation are more interested in new things (Threats to Hup Seng Industries, n.d.).

3
1.2 7 Dimensions Analysis
Hup Seng’s main competitors are Hwa Tai and Munchy’s.
Moral influence of the ruler. (Line1.8, 1.9 and 1.18). For example, giving back to society is
part and parcel of Munchy’s culture. In 2016, Hwa Tai does its part in supporting language
learning by sponsored RM10,000 worth of Newspaper-in-Education (NiE) as part of its
corporate social responsibility programme (Chan, 2016).
Generalship. Hwa Tai and Munchy’s both are the leading company. They are maintaining
the healthy balance between organisational culture, values and ethics and business growth.
Weather. For example, Munchy’s is recognized as the manufacturer of only halal product
since Malaysia’s government is currently focusing on international Halal Hub business (The
Strategy used by Munchys make the company marketing, 2016). Munchys is expanding their
businesses to other muslim country. Hwa Tai also follow to apply the Halal certification to
respect customer in Malaysia and other Muslim country (Analysis of Hwa Tai Industry
Berhad, 2017).
Terrain. Hwa Tai and Munchy avoid competitor’s strength and attack competitor’s weakness
by offering the lowest price in the market. They try to reduce the cost of production to offer
the best product with the lowest price.
Doctrine or law. For instance, Hwa Tai’s Board Charter sets out the roles, responsibilities
and functions of Board of Director of Hwa Tai. (Hwa Tai Industries Berhad, n.d.). Moreover,
Munchys had implemented organizational chart in order to create a chain of command and
responsibility.
Strength of army. For example, Hwa Tai operates through two segments which are
manufacturing and trading. In fact, the company increases its competitive
advantages(Company Overview of Hwa Tai Industries Berhad, n.d.). Furthermore, Munchys
has different types of products such as Krunch, Lexus and Captain Munch. Munchys are
available in 20 countries and it increases its competitive edges by offering in many countries.
Training. For instance, Hwa Tai and Munchy’s had develop a Human Resource
Development (HRD) system to create such a climate. The system had developed to perform
task given based on principles (Human Resource Development, n.d.).
Rewards and punishment. For example, Hwa Tai and Munchy’s will reward employees
when they accomplished task given that are satisfied by company or manager. However, both
company also will punish their employees by intangible or tangible elements.

4
 RECOMMENDATION

1.1 Sun Zi’s Philosophy 1: Chapter 4 – Disposition of the Army

“Those who are skillful in warfare can ensure that they will not be defeated by the
enemy, but will not be able to ensure victory over the enemy.” – 4.3
HSIB launched a new product which is Dinosaur cracker. Hup Seng Industries Berhad
has greater customer loyalty and strong brand recognition in the food industry with high
quality. For the new product which is Dinosaur cracker, HSIB set low price which is RM12
per packet. Low prices can attract more customers to purchase. However, some of them will
assume that low price maybe with low quality. Thus, some of them will prefer other brands
that are higher prices.

1.2 Sun Zi’s Philosophy 2: Chapter 1 – Detailed Assessment and Planning

“Terrain refers to whether the route to be taken is long or short, whether the ground is
treacherous or safe, wide or narrow with regard to ease of movement, and whether the
ground will determine the death or survival (of an army).” – 1.11
The ingredient of Hup Seng’s Dinosaur cracker can be consumed by the majority of
people as the ingredients are considered by several points of view to make sure most of the
people can consume it or not. The ingredients used are HALAL which is suitable for Muslim
and non-muslim. Besides, they need to ensure it doesn’t contain meat and suitable for
vegetarian or non-vegetarian. Therefore, the majority of people can consume it.

1.3 Sun Zi’s Philosophy 3: Chapter 6 – Weaknesses and Strengths

“An army can travel for a thousand miles without being distressed and exhausted
because it moves along places where there is no enemy.” – 6.11
The design of Dinosaur Cracker is unique which is the chocolate powders are on the
top of cracker. HSIB has no competitors because there are no crackers that have similar
designation with Dinosaur cracker and it is the first cracker designed in this way in market.
Hence, the product with unique designation will attract more consumers.

5
1.4 Sun Zi’s Philosophy 4: Chapter 7 – Military Maneuvers Communication in
Business
“Now the purpose of using cymbals, drums, flags, and banners is to draw the attention
of the troops and focus them for combat under the direction of the commander.” – 7.43
HSIB launches Dinosaur cracker and promotes it through television’s advertisements,
media sharing sites and social media sites. Promote with advertisements can raise awareness
of the customers so that they can able to aware of the Dinosaur Cracker once it launched.

1.5 Sun Zi’s Philosophy 5: Chapter 6 – Weaknesses and Strengths

“Everyone may know the formation that I used to secure victory.” – 6.53
In the market, majority of competitor knew that HSIB always set the low price to
attract more customer. So, all competitors will do their best to compete with HSIB. However,
the advantages of Dinosaur cracker not only can fulfill the customer’s hunger, but it is
healthy and it can provide energy which it is unlike from the cracker that produced from Hup
Seng before.

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 Presentation Memo

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT

ACADEMIC YEAR: 2018/2019
MAY 2019 TRIMESTER
UKMM1011 SUN ZI’S ART OF WAR AND BUSINESS STRATEGIES
PRESENTATION MEMO

Lecture Group: L1 Date: 20/08/2019

Faculty: Faculty of Accountancy and Management
Company Selected: Hup Seng Industries Berhad (HSIB)

Strategies of New Product Sun Zi’s Philosophies Additional Explanation

Strategy 1:
Set low price for Dinosaur
cracker which is only
RM12 per packet
Strategy 2:
Dinosaur cracker’s
ingredients can be
consumed by majority of
people
Strategy 3:
Dinosaur cracker’s
designated in unique way
which the chocolate
powders are on the top of
the cracker
Applied
4.3 Those who are skillful Low price can attract
in warfare can ensure that customers but we can’t sure
they will not be defeated that all customers will buy it
by the enemy, but will not as they think that low price
be able to ensure victory maybe low quality so they will
over the enemy. prefer other brands that are
higher price.
1.11 Terrain refers to Dinosaur cracker’s ingredients
whether the route to be are considered by many points
taken is long or short, of view to ensure that majority
whether the ground is people can consume it or not
treacherous or safe, wide so that the ingredients used are
or narrow with regard to HALAL which suitable for
ease of movement, and muslim or non-muslim and
whether the ground will also it doesn’t contain meat
determine the death or which suitable for vegetarian
survival (of an army). and non-vegetarian.
6.11 An army can travel In the market, Dinosaur
for a thousand miles cracker first cracker that
without being distressed designed in this way so that it
and exhausted because it does not has competitors who
moves along places where have the same designation
there is no enemy. with Dinosaur crackers.

7
Strategy 4:
HSIB will advertise it in
television’s advertisements,
media sharing sites and
social media sites for
Dinosaur Cracker
Strategy 5:
Ingredients used for
dinosaur cracker are
different from before which
it is healthy and it can
provide energy to
consumers.
7.43 Now the purpose of
using cymbals, drums,
flags and banners is to
draw the attention of the
troops and focus them for
combat under the direction
of the commander.
6.53 Everyone may know
the formation that I used to
secure victory
We will advertise the Dinosaur
cracker to raise the awareness
of customers so that they are
able to aware of the Dinosaur
cracker once it launched.
All competitors knew that Hup
Seng set the price low for the
crackers to attract customers
so that they will always do
their best to compete.
Therefore, we used healthy
ingredients which it is healthy
and also can provide energy to
consumers for Dinosaur
Cracker which it is different
from the crackers that
produced from Hup Seng
before.
8
 CONCLUSION

HSIB finds its strength in having a strong brand recognition in the food industry. HSIB finds
its main weaknesses are the declining of its revenue. And the high turnover of employees.
HSIB can increase its opportunities by lowering the cost of the company new products, take
advantage of the fast changes customer preferences and do collaboration with other
companies. The saturation of minimarket in urban areas compared to countryside poses as a
threat for HSIB.
HSIB’s main competitors are Hwa Tai and Munchy’s. In the first dimension – moral
influence, Munchy’s has adopted the culture of giving back to the society whereas Hwa Tai
also does its part in supporting language learning. The companies practice good generalship
by maintaining the healthy balance between organisational culture, values and ethics and
business growth. As for weather, Munchy’s is recognized as producer of only halal products
while Hwa Tai followed to apply for Halal certification (Analysis of Hwa Tai Industry
Berhad, 2017). The companies took advantage of the terrain by avoiding competitor’s
strength and attack competitor’s weakness. Munchy’s has employed doctrine or law by
implementing organizational chart whereas Hwa Tai’s Board Charter sets out the roles,
responsibilities and functions of Board of Director of Hwa Tai. (Hwa Tai Industries Berhad,
n.d.). Both companies showed initiative to increase their strength of army. Munchy’s and
Hwa Tai have developed Human Resource Development (HRD) system in line with the
training dimension. Also, in line with rewards and punishment, the companies reward
employees and punish their employees.
HSIB employed the philosophy disposition of the army by launching the Dinosaur
cracker. Besides, detailed assessment and planning is required especially in the research on
the ingredients of the new cracker. It is wise to be aware of weaknesses and strengths by
designing the cracker which is special and unique therefore has no competitors. It also boasts
positive health effects. The military maneuvers communication in business is important
hence its advertisement and promotion efforts should not be neglected.

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