FACULTY OF BUSINESS MANAGEMENT

MASTER BUSINESS ADMINISTRATION

BM -771
INTERNATIONAL BUSINESS – INB780
COMPANY :

PREPARED BY :
ROSSILAH BT. LAL MUHAMMAD – 2012230608
MUHAMMAD NAJDI MAT SALEH -2012696906
MOHAMMAD SYARIN SAPUAN – 2012872204

PREPARED FOR :
ASSC. PROF. DR. NORYATI AHMAD

DATE OF SUBMITTION:
1ST JUNE 2014

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ACKNOWLEDGEMENT

The special thank goes to our helpful Lecturer, Assc. Prof. Dr. Noryati Ahmad .The
supervision and support that she gave truly help the progression and smoothness of the
INB780 class. The co-operation is much indeed appreciated.

Today, after ended presentation, we will make clear the advantages of

INB780that needed in business because it has capacity to change the business
performance and financial position. Others, we learn about INB780 in terms of
increasing efficiency and organizations performance, competitor and operation analysis,
marketing strategies, structure and implementations of strategies, financial
management and others. This knowledge and sharing the experience in class really
help me to known very well the challenges of international business in terms of world of
environments to running our own business in future.

Therefore, our grateful thanks also go to our classmates. A big contribution and hard
worked from all of you during the four week is very great indeed. All assignments during
the lecturer would be nothing without the enthusiasm and teamwork from all of you.
Besides, this INB780 program makes me realized the value of working together as a
team and as a new experience in working environment, which challenges us every
minute. The whole program really brought us together to appreciate the true value of
subject and respect of each other opinion and relationship.

THANK YOU VERY MUCH

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1.0 INFORMATION OF PAST

- HISTORICAL DEVELOPMENT OF COMPANY

Yeo Hiap Seng's origins lay in the vast ethnic Chinese community that helped transform
much of the Southeast Asian region in the first half of the 20th century. Among the
Chinese who arrived in Singapore in the years leading up to World War I was Yeo Keng
Lian. Yeo had founded a soy sauce factory in Amoy, near Zhangzhou, in China's Fujian
province, in 1900. Yet the Yeo family's greatest success came only after they
immigrated to Singapore in 1935. By 1937, the family had incorporated its new
business. The name chosen for the company, set up as a family-controlled partnership
with a starting capital of just SGD 51,000, set the tone for the group. The Yeo family
called their company Yeo Hiap Seng Sauce Factory (Yeo Hiap Seng literally translated
as "Yeo United to Succeed.")

By the early 1940s, the company's sauce also had begun developing a market in nearby
Malaysia as well. Yeo Hiap Seng formally extended its sales reach to Malaysia in 1942.
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For Yeo, the post war period became a time of strong growth and expands ion into new
areas. By the late 1940s, the company had begun to prepare a diversification of its
production, launching development of its first new product, a canned chicken curry, in
1950. In support of this effort, the company built a new and larger production facility in
1951. The following year, the company became the first in the region to market a
canned chicken curry product.

That successful launch was soon followed by the company's expansion into the
production and bottling of beverages, as well as the launch of a wider range of canned
foods. Yeo also continued to produce its soy sauce. In the early 1950s, the company
sought to leverage its expertise in soy products by experimenting with methods for
bottling soy milk. Until then, consumers had to make their own soy drinks, boiling the
soy over a fire for long periods. By 1955, however, Yeo had succeeded in developing a
method for producing and bottling the soy milk. The launch of that product sparked a
revolution of sorts in the region's beverage market. At the same time, the company
recognized the potential for bottling another favorite regional beverage, chrysanthemum
tea. Yeo converted from its partnership status to that of a limited liability company in
1955. Two years later, with the declaration of Malaysia's independence, the company
formalized its operation in that country as well, establishing a sales subsidiary there,
Yeo Hiap Seng (Sarawak) Sdn. Bhd.

Yet, with the new Malaysian government promoting the country's economic
independence as well, Yeo quickly added a production component in that country. The
new Yeo subsidiary, Yeo Hiap Seng Canning Factory (Malaya) Sdn. Bhd., opened in
Petaling Jaya in 1959.Today, the Yeo Hiap Seng group, which is a public listed
company on the Bursa Malaysia, is involved principally in the production, marketing and
sale of food and beverage products under the brand names of 'Yeo's', 'Cintan', 'Justea',
'SoyRich', 'H-Two-O' and 'Yogurt'. With a significant market presence in the ethnic
market and in line with the government's aim to further develop the Malaysian halal
brand as a global benchmark, Yeo's leverages on Malaysia's role as the world's Halal
manufacturing hub. In 2008, another significant chapter in the impressive profile of the
company is the co-branding partnership agreement undertaken by Yeo's and the

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Canadian Soybean Exporters' Association, making Yeo's the first global brand (outside
Canada) to feature the Canada brand icon on its soybean packages. Today, Yeo's
Malaysia serves as an important manufacturing centre for Yeo's Global Distribution for
Indonesia, New Zealand, Australia, Europe, IndoChina and the US, making it a leading
food and beverage company with international presence

All these aspects form the core values and culture that the company was founded on
more than a hundred years ago, and which till today continues to remain the stronghold
of Yeo's success both locally and internationally.

Chronology :

 Key Dates:
 1900: Yeo Keng Lian begins producing soy sauce in Amoy, near Zhangzhou, in
China's Fujian province.

 1935: The Yeo family immigrates to Singapore and establishes Yeo Hiap Seng.

 1942: The Company establishes a sales operation in Malaysia.

 1953: The Company launches its first canned chicken curry; bottled soy milk and
chrysanthemum tea are introduced.

 1957: The Malaysian office is incorporated as Yeo Hiap Seng (Sarawak).

 1959: The Malaysian branch begins food production in a facility in Petaling Jaya.

 1969: Yeo Hiap Seng goes public on the Singapore Stock Exchange.

 1975: Yeo Hiap Seng (Malaysia) goes public on the Kuala Lumpur Stock
Exchange.

 1984: The Company launches the Fizzi brand of carbonated fruit -flavored

beverages.

 1989: The Chun King brand in the United States is acquired.

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  1990: The Company launches production of soy milk under license in China.

 1993: The Company enters the Thai market through the WY Co. joint venture.

 1995: The Ng family acquires control of the Yeo companies; noodle production

begins in the Fujian province.

 2001: The company establishes a Bahrain sales and distribution subsidiary.

 2005: A sales and distribution alliance is formed with Hain Celestial, a U.S.-
based organic foods and natural products company.

2.0 INFORMATION OF PRESENT

VISION

To be a market leading food & beverage company with a global reach

MISSION

To provide our customers with high quality and best value products through the
constant pursuit of innovation and excellence

CORPORATE OBJECTIVE
Business Excellence
Embracing excellence & innovation in our business

Unity
Working as ONE team
Integrity
Honesty & fairness always
Loyalty
People & customer focus to earn loyalty
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 Diligence
Pride, passion, hardwork & dedication are the hallmarks of our peoples

3.0 ORGANIZATIONAL STRUCTURE

Yeo Hiap Seng's organizational structure started with business family type has not only
a structure but also a culture. 'Culture' describes the typical way an organization does
things, including patterns of behaviour and relationships. Important aspects of culture at
Yeo Hiap Seng's which reflect the culture of are an emphasis on teamwork, and
empowerment.

Yeo Hiap Seng's sees its employees as its most important asset. Motivated employees
provide the engine that drives the Company's growth. Organizing people into teams of
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marketing, sales or product teams encourages people to feel valued. Within a team they
are encouraged to contribute ideas and to be innovative. If they feel that something
could be done better, they are encouraged to voice that opinion.

By creating a friendly, innovative culture, Yeo Hiap Seng's is able to depend on a high-
quality workforce that helps it to maintain brand leadership in world countries produced
and in every other market in which it operates. Trust is at the heart of every relationship,
whether it be:

 Customers' and consumers' trust that the Company will provide the highest level
of service and attention to their needs

 Bottling partners' trust that the Company is operating in the best interests of the
Yeo Hiap Seng's

 Employees' trust that their contribution is being valued in an open culture.

Open communication channels provide the means to support a culture based on

relationships. Yeo Hiap Seng's has several communication channels, including:

 Monthly leadership team meeting (involving function heads)

 Weekly department team meetings

 Monthly employee team briefing sessions

 Consultative employee groups for each region (with representatives meeting in a

Asean Council)

 Surveys to monitor employee views and feelings.

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 YEOS INTERNATIONAL BUSINESS

YEOS MALAYSIA

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 YEOS INDONESIA

YEOS SINGAPORE

YEOS UK (EUROPE)

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 YEOS VIETNAM

4.0 FINANCIAL STATEMENT - INTERNATIONAL VIEW PERSPECTIVE

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For the financial year ended 31 December 2012, the Group achieved overall revenue of
$566.4 million, $123.4 million or 27.9% increase from the previous year. Food and
beverage (“F&B”) revenue improved by $27.0 million or 7.3% from the previous year to
$398.5 million largely due to higher sales from Singapore, Malaysia, Indochina and
Indonesia. Similarly revenue from property development also improved by $96.2 million
or 141.8% from the previous year to $164.1 million. The Group recorded a profit after
tax and non-controlling interests of $70.4 million in 2012, up from $42.6 million in 2011.
Net operating cash inflows generated by the F&B Division and the Property Division
were $23.4 million and $83.2 million respectively.

Yeos Group have installed three high-speed Tetra-pak lines in 2012 to better serve the
market. A new aseptic PET line will be commissioned in early 2013 in Malaysia plant.
This will be the first aseptic PET line in Malaysia and consumers can look forward to
more exciting new products from Yeo’s. In addition, Yeos have also committed
significant resources to improve our supply chain management to support the growing
business and manufacturing infrastructure so as to serve their customers better.

Yeos continued to enjoy high growth in Indonesia and Indochina, and the Group is
preparing to set up manufacturing facilities in Cambodia and Indonesia by 2015 and

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2016 respectively to meet growing market demands. In the meantime, Yeos will be
installing additional manufacturing and warehousing facilities in the Singapore, Senoko
plant to create more capacity for the Group to meet the increasing demand in the
interim and enable us to refurbish and retool the aging Johor Baru plant in Malaysia.

The Group remains committed to participation in the Asian beverage market but will be
more selective in terms of product range and geographical spread. The Group has also
discontinued our manufacturing activities in Shanghai plant in September 2012. The
relocation of our manufacturing plant from Guangzhou to Sanshui in Foshan was
completed. In January 2013. The new plant will go into full commercial production in
March.

As total of the analysis in Yeo’s company we can conclude that, performance of the
financial income statement more better compare to year 2012 results. The planned of
business model very effective and efficient which can give a more profit to company in
terms to do more investments and generate more incomes and into balance statement
in Yeo’s company financial in good condition to be growth in next planned further.

Overall, with the higher performance in year 2012,Yeos the company of Food and
Beverage industries are the sustainable and consistent business growth looking for the
demanding and capacity usage every day. Yeo’s have proof that, the better
performance in 2012 gives the strength of internal and external to more confidence to
move into 2013 and the Board is optimistic in spite of the challenges facing the global
economy. Yeo’s should consistent the business and planned for next future strategy to
ensure that the company will be leading in food and beverage industries. The
opportunities to expand in future were worldwide looking for the brand of Yeo’s is
trusted by consumer whether in market, shop retail, hypermarket and supermarket. This
is because the Yeo’s brand is one of halal product which safe elements were there.

Additional Details

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  Public Company
 Founded: 1900

 Employees: 1,700

 Sales: MYR 373.24 million (2011)

 Stock Exchanges: Kuala Lumpur

 Ticker Symbol: YHMS

 NAIC: 311611 Animal (Except Poultry) Slaughtering; 112990 All Other Animal

Production; 311421 Fruit and Vegetable Canning; 311422 S pecialty Canning;
311612 Meat Processed from Carcasses; 312111 Soft D rink Manufacturing

5.0 MARKETING STRATEGIES COMPARISON WITHIN COUNTRIES

The Yeos brought the business to Singapore in the 1930s by setting up the Yeo Hiap
Seng Sauce Factory. Business flourished as the soy sauce grew to become many
Singaporeans’ favourite companion in their daily cooking.

With gaining popularity, Yeo Hiap Seng expanded into more diversified food and
beverage products under the Yeo’s brand. Apart from the traditional soy bean drink, a
hit favourite for many locals, the company also produced a series of Asian traditional
beverages made from natural ingredients and herbs, and a wide range of products from
chilli sauce, soy sauce, culinary sauce, sesame oil to instant noodles.

Today, with direct operations in Singapore, Malaysia, Indonesia, Hong Kong, China,
Canada, US and other parts of the globe, Yeo Hiap Seng has grown into a successful
food and beverage group of companies with an international presence.

Though the company has grown into a world class conglomerate from its soy sauce
making days, one thing remains certain: it will continue to offer products of the highest
quality, using the finest ingredients, in order to bring the best value to the consumers.
That, will never change for a hundred years to come.
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 MALAYSIA PACKAGING AND LABELLING

The YEO HIAP SENG Malaysia group is involved principally in the production,
marketing and sale of food, beverages and sweetened condensed milk under the brand
names of "Yeo's", "Fizzi", "Goodtase", "Cintan" and "SoyRich". These products are
manufactured in the YEO HIAP SENG Malaysia factories located throughout Malaysia.
Barbara Murray (2006c) explained the soft drink industry by stating, “For years the story
in the nonalcoholic sector centered on the power struggle between Coke and Pepsi. But
as the pop fight has topped out, the industry's giants have begun relying on new product
flavors and looking to noncarbonated beverages for growth.” In Malaysia, the brands of
Yeos is familiar and mostly the overall target customer is choose Yeos as one of
friendly product due to Yeos as commitment to anticipating consumer needs and
providing customer satisfaction. The advertising and campaign is one of the strategies
to promote the products to the market which two main areas of focus are magazine and
newspaper. Most of the other people read magazines during their free time.

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 SINGAPORE PACKAGING AND LABELLING

The market for food products in Singapore is small. This makes it hard for local
manufacturers to expand and reap the benefits of economies of scale. It makes it harder
to justify throwing money into research and development to come out with new
products. A small domestic market makes it hard to test new food products on the end
consumers. Ultimately, it also makes it hard to expand and sell Singapore-made food
products in the global markets. All food and beverage products are manufactured using
the freshest ingredients in order to maintain the natural delicious taste and flavor.Strict
hygiene standards which are maintained at all times and stringent quality control ensure
the high quality of all products. Continuous research & development is carried out as
part of our commitment to further improvement as well as to keep abreast of the market
trends. Added to that is the Yeo's special touch that makes our wide range of products
the natural choice for our many customers nationwide. With offices, warehouses and
depots throughout Asean, YEO HIAP SENG Singapore operates its own fleet of sales
vans to service outlets directly. YEO HIAP SENG Singapore wide distribution network
is one reason why reputable manufacturers trust the distribution strength of the Group's
trading arm. All these aspects of YEO HIAP SENG Singapore operations are part and
parcel of the company's culture making it the driving force behind the company's
success.

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 UK (EUROPE) PACKAGING AND LABELLING

Perhaps one reason why the Yeo's product range is such a favourite is due to
commitment to anticipating consumer needs and providing customer satisfaction even
though the globalize consumer. YEO’S introduced a series of authentic Asian sauces to
the Europe market. To help them kick start their journey in exploring and concocting
authentic Asian delicacies, culinary recipes were provided and since then, YEO’S
products have proved to be a smashing success in the UK market.

Representing over 15% of UK manufacturing turnover, Yeos food and drink industry
makes substantial contributions to both their society and economy. Despite tough
trading conditions, since 2007 and even before, Yeos food and drink has proven itself to
be a resilient and adaptable sector. Moreover, 71% of food and drink Yeos brand now
recovery, only 46% amongst other food and beverages industries in UK markets. For
instance, Yeos UK(Europe) focus on was the first to commercially bottle and sells
traditional Asian beverages like soyabean milk, sugarcane drink and chrysantemum tea.

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 VIETNAM PACKAGING AND LABELLING

Vietnam Population: 83.1 million persons has been one of the world’s fastest growing
economies over the past 5 years .In recent years, this growth has been driven by a
combination of exports and, importantly, domestic demand. Recent forecasts indicate
that future economic growth of between 6% and 8% per annum could see the middle
and upper income group double in size before 2015. These market changes have not
gone unnoticed by foreign investors or some larger exporters. A lower cost number of
raw material there was identified Vietnam as a key market for development over the
next 10 years. These companies include Yeos which have invested in some form of
production operation in Vietnam.

In addition to this, Yeos has identified Vietnam as one of the world’s “high potential”
markets for development over the next 5 years. Another multinational company believes
that Vietnam will become a larger market than the Philippines within 5 years.

Marketing and promotion

Vietnamese consumers are price sensitive and have little brand loyalty. However, with
rising incomes and westernisation, this is starting to change. Products are increasingly

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competing on brand and quality. Careful thought around marketing and promotion
strategies will help a product succeed in the Vietnam market in the long term. Vietnam
has strict regulations around advertising. Mass market advertising for alcoholic
beverages with alcohol content above 15% is not permitted. Other limits on advertising
and promotions include:

 Requiring approval from the relevant government ministry to advertise certain

products.

 Spending on advertising and promotion cannot be more than10 percent of total

spending.

6.0 TARGET MARKET

I. Housewife
II. Students
III. Food Hawker
IV. Restaurant

Market Segmentation Yeo’s chooses:

I. Housewife - consumer as its target market. Housewife prepares meal for her family
everyday; she is the one who decides what to cook and what ingredients to use.
They are using the salted soya bean to make the food more delicious. With the
products that produce by Yeo’s such as cordial drink, healthier drinks, and some
canned food are the simplest desert to be prepared. We focus in the cordial drink
which is the famous drinks for the Asian people. Due to this reason, we can say
that housewife is the “decider” in using some drinks such as fruit juices in her
desert for her whole family. The most famous products are focus on healthier and
fruit drinks and some in canned food. Consumer in this segment normally ages
from 30 – 78. This segment focused on healthier drinks which are mostly
favorable by housewife.

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 II. Students - who that staying outside is one of the consumer that hit the list of
market segmentation because they are expanding fast. Most of it serves their
meal by eating the juice fruit and some prefer to soy drinks. They are potential for
healthier just for life style and diet as the most favorable is fruit drink and some
prefer to carbonated drink too which provide in different type of flavor.
III. Food hawker - nowadays is expanding faster as to the economy downturn
recently. More and more people tend to involve in drink industry. They will sell
beverages in morning and afternoon. They are potential for drink as life style of
customer which are not categorized to sell with. Some cordial from Yeo’s as
prefer a customer to buy because of cheap and ready to drink.
IV. Restaurant - is well known in this region for serving beverages and mostly
restaurant prefer to sell a beverages canned drinks. As major attraction to
consumer restaurant have serve juice and cordial such as syrup. As a
conclusion, restaurants are potential customer of company in using most of
company’s Yeo’s product.

7.0 MARKET SHARE

Market share is a key indicator of market competitiveness that is, how well a firm is
doing against its competitors. YEO’S Management focused on F&B businesses with
management confirm they are indeed focused on building up its F&B business. Despite
the brand's long heritage and leadership position in Asian drinks, this business has
been neglected pre-restructuring in favor of property development. YEO’S believe the
company is taking steps in the right direction. Reorganizing operations to move ahead.
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For Financial Year 2012, F&B operating margins were just 2.3%. These margins, which
are significantly lower than peers, form their belief that there is upside potential given its
market share which no.1 for Asian drinks in Singapore and Malaysia. The company is
in the midst of reorganizing its plants to improve overall efficiency. For example, it is
consolidating into 3 plants in Malaysia and 1 plant in Guangdong, China. It is also
expanding warehousing and manufacturing facilities in Singapore to reduce contract
outsourcing and meet additional demand.

The direct competitors competing for the market share carbonated drinks which conquer
overall for 34% in beverages drinks. Focus to the healthy campaign, YEO’S Asian
drinks and it H Two-O brand offer the health drinks benefit in company website with
detailed information about the products even the percentage overall less than 20%. .

YEO’S market sharing added to investing in Cambodia, Indonesia. These are two
markets which the company has been enjoying high growth. It is therefore attaching
strategic importance, by investing significantly in manufacturing locality. In the former, it
is an early entrant, enjoying premium pricing and dominant market share. In the latter,
management sees a huge market which is similar to Malaysia. These two major new
plants will likely commence operations in 2015/2016.

Privatization of YHS Berhad complete. The company completed the privatization of its
Malaysia subsidiary in Jan 2013. This will give it a higher share of F&B profit going
forward, which we have factored in. Its last property project (Jardin) will be completed
this year, and management will also seek to divest its sizeable landbank should
opportunity arises.

Grinding forward, patience needed. YEO’S see latent potential in the Group's F&B
business, but warn that improvements in margin and more meaningful geographical
expansion will likely be a multi-year story. In the immediate term, costs are likely to
remain high due to new product launches and start-up costs.

Now a day, beverage companies are only concerned with volumetric growth and
earnings, and they do not like losing out to competition. YEO’S acknowledge the secular
trend and include healthy beverages in their product lines, therefore YEO’S can keep
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their market shares and reputations for keeping up with the times. To do that, YEO’s as
a players in the global beverage industry always remember one thing to go
healthymeanwhile the awareness of governments and health groups are increasingly
promoting healthier beverage choices amongst customers.

8.0 PRODUCT SITUATION

Yeo’s emphasizes in producing in beverages drinks and certain in others canned foods
whereby the company most favorable products categories in total. These categories of
products carbonated drink, healthier drinks, fruit juices and others. All these products
are the company main income. The company main targets for this category of products
are housewife, students, food hawker and restaurant. Yeo’s chooses housewife
consumer as its target market because they are the “decider” in using fruit juices,
cordial drink as for her whole family. Consumer in this segmentation normally ages 30 –
78.

However, to be more competitive, Yeo’s expanded its products to variable. These

products are healthier like soy canned drink, fruit canned drinks and certain in food.
These products contribute side income to the company. Due to these products are not
the company main incomes; therefore these products are quite competitive. But they
still need to go on producing refining these products to be conservative.

Category that purchases company products the most is at the age range from 39 – 63
years old, 38%. Follow by age’s category of 26 –38 years old, whereby the purchases
percentage is 28%. Meanwhile for 39 – 63 years old and 63 years old purchaser
consists of 19% and 15%

9.0 MARKET SITUATION / ENVIRONMENTAL SITUATION (MACRO AND MICRO)

There are two main parts of market situation analysis, which is microenvironment
analysis and macro environment analysis. A company should know its position in
market, its competitors’ position and the threats to the company. The soft drink industry
is affected by macro and micro environmental factors of the industry that will lead to
change. For the micro environment the new entrants are not a strong competitive

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pressure for the drink industry. Yeo’s and F&N dominate the industry with their strong
brand name and great distribution channels. In addition, the soft-drink industry is fully
saturated and growth is small. This makes it very difficult for new, unknown entrants to
start competing against the existing firms. Another barrier to entry is the high fixed costs
for warehouses, trucks, and labor, and economies of scale. New entrants cannot
compete in price without economies of scale. These high capital requirements and
market saturation make it extremely difficult for companies to enter the soft drink
industry; therefore new entrants are not a strong competitive force (Murray, 2006c).Next
for the micro environment the substitute products are those competitors that are not in
the soft drink industry. Such substitutes for Yeo’s products are bottled water, sports
drinks, and fruit juice. Bottled water and sports drinks are increasingly popular with the
trend to be a more health conscious consumer. There are progressively more varieties
in the water and sports drinks that appeal to different consumers’ tastes, but also
appear healthier than soft drinks

In macro environment the entry/exit of major firms is a trend in the industry that will
likely lead to change. More specifically, merger and consolidation has been prevalent in
the soft drinks market, causing some firms to exit the industry and then re-enter
themselves. Several leading companies have been looking to drive revenue growth and
improve market share through the increased economies of scale found through mergers
and acquisitions. A second trend in the macro environment is globalization. With the
growing use of the internet and other electronic technologies, global communication is
rapidly increasing. This is allowing firms to collaborate within the country market and
expand into world markets. It has driven competition greatly as companies strive to be
first-movers. Third, changing societal concerns, attitudes, and lifestyles are important
trends. In the United States and Europe, people are becoming more concerned with a
healthy lifestyle. “Consumer awareness of health problems arising from obesity and
inactive lifestyles represent a serious risk to the carbonated drinks sector” (Data
monitor, 2005). The trend is causing the industry’s business environment to change, as
firms are differentiating their products in order to increase sales in a stagnant market.

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10.0 COMPETITIVE SITUATION

Brand name loyalty is another competitive pressure. Today the market competition is
not only rife but also growing more intense from year to year. The Brand Keys’
Customer Loyalty Leaders Survey (2004) shows the brands with the greatest customer
loyalty in all industries. These developments explain the current talked about “marketing
warfare” and “competitive intelligence systems”. It is because market has become so
competitive, understanding customers are no longer enough. Companies should start
paying keen attention to their competitors. Successful companies design and operate
system for gathering continues intelligence about competitors. It would seem a simple
task to a company to identify their competitors. It would seem a simple task for a
company to identify its competitors. However, the range of a company’s actual and
potential competitors is much broader. A company is more likely to be “buried” by its
latent competitors than its current ones.

Direct Competitor

- For direct competitor, the YEO’S has a number of direct competitors for the
same market share. The most challenging thing for Yeo’s is facing giant
competitor such as seasons, fiZi, pokka, and F&N. These companies have
huge capital and have branch in every state in Malaysia. This makes it almost
impossible to penetrate.

Indirect Competitor

- An indirect competitor is identified as Marigold Peel Fresh , whose parent

company is Malaysia Dairy Industries. It is a fruit juice brand with 14 flavor
ranging from apple, orange to Pink guava. Even though, it does not represent
a direct competition due to its significant but the content is provided concern
due to healthy nature to drinks.

Marigold peel fresh utilize for commercial television, using a celebrity to

endorse for overall brand (peelfresh , 2009). The brand also created a

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 commercial for its new flavor known as a Power Berries ,Mangosteen Juice
which advertise in You Tube.

11.0 VISION IN FUTURE

Commercial Partner And Sponsorship

Much consideration was taken before choosing our potential commercial partner and
sponsorship. Guinness Anchor Berhad (GAB) was chosen because it is the market
leader in the beer and stout industry of Malaysia. This company started business in
1989 with the partnership between Malayan Breweries and Guinness Malaysia Berhad.
On the similar year, it was listed in the KLSE as well. As a related industry, they can
truly assist our company in sponsorship to achieve greater success. This is an ideal
reason to seek them as sponsor for the organization of ours.

Control And Evaluation

Analyzing the effectiveness of the public relation plan is another important part of
evaluation test. It used to estimate whether the media that we use reach to our target
market effectively. YEO’S company marketing department should do a research for
advertising ROI (Return On Investment). It is a strategy that uses to measures the
relationship between output (sales) and input (budget, money spent on message
creation and delivery). By doing this research we will know whether the tools used in the
public relation plan is efficient enough (Allen, 1999).

All of the measurement and evaluation activities will help YEO’S to learn which way is
the most effective way to reach our target audiences. Therefore, they can increase the
performance of the public relation plan in the future.

Market opportunity is a big factor in shaping a company’s strategy in its campaign.

Indeed, the managementcan not properly tailor to the YEO ‘s situation without first
identifying each company opportunity, appraising the growth and profit potential each
one holds and crafting strategic initiatives to capture the most promising of the
company’s market opportunities.
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12.0 INTENSIVE COMPETITOR

Framework of analysis

INTENSIVE
COMPETITOR

Analysis
13.0 FRAMEWORK OF ANALYSIS

SWOT

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 13.1 CPM

YEO’S F&N MARIGOLD

Critical success weight rating Weighted rating Weighted rating Weighted

factors score score score
 Market share 0.15 4 0.60 3 0.45 2 0.30
 Price 0.10 3 0.30 3 0.30 3 0.30
comparison
 Financial 0.12 4 0.48 4 0.48 3 0.36
position
 Product 0.15 3 0.45 3 0.45 3 0.45
quality
 Technology 0.15 4 0.60 4 0.60 3 0.42
advancement (PET)
 Customer 0.15 4 0.60 4 0.60 3 0.42
loyalty
 Employees 0.11 3 0.33 3 0.33 3 0.33
 Marketing 0.07 3 0.21 3 0.21 3 0.21
Total 1.00 3.71 3.56 2.85
CPM ANALYSIS :

Competitive profile matrix (CPM) is one of the strategic management tools to

differentiate among different players with an industry. CPM indicates the snapshot to the
companies about their weak and strong points relative to their competitors. In CPM
players are measured on the basis of their critical success factors. The competitive
profile matrix identifies a firm’s major competitors and its particular strengths and
weaknesses in relation to a sample firm’s strategic position. Competitiveness of the firm
can be measured on the basis of industry key success factors and firms strengths. If
variation between the final score is found among the rivals; than with the higher score
getter has the greater net competitive advantage and vice versa for lower score getter.
The final scores showed that the YEO’S is a strong company in respect of its

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 competitors. The F&N and MARIGOLD stayed on the second and third position with
scores 3.56 and 2.85 respectively. YEO’S has highest score in the industry in terms of
industry key success factors.

13.2 IFE MATRIX

Key Internal Factors Weight Rating Weight

Score
Strengths
Product line has almost 100brands 0.09 4 0.36
Strong global presence, located in more 10 countries 0.10 4 0.40
Long history has built excellent brand recognition 0.06 4 0.24
Partnership longevity with established sporting events 0.05 4 0.20
including Asean Games
Industry leader in market capitalization with USD 112 Miillion 0.12 4 0.48
Return on equity yielded 30% in 2011 0.04 4 0.12
Leader of dividend yield of 2.6%. The company has had 0.04 4 0.16
consecutive years of an annual dividend increase.
Joint venture between the Yeos ocmpany and Chun King 0.06 4 0.24
brand has resulted in the establishment of Beverage
Partners Worldwide (BPW)
Yeos has formed strong partnership with Chun King 0.10 4 0.40
Weakness
Product line limited to beverages 0.09 1 0.09
A failed USD16 million acquisition of previous asset hiders 0.10 1 0.10
for long term growth
Negative publicity in New Zealand, has led to poor brand 0.03 2 0.06
image and hindered growth there
Lack of management willingness to place foreign 0.02 2 0.04
products into markets
Market deficiencies due to turnover in leadership and a 16% 0.05 2 0.10

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 decrease in advertising spending
Yeos inventory turnover is only 5.4compared to Pokka 0.05 2 0.10
Company around 8.0
Total 1.00 3.09

IFE ANALYSIS :The total weighted score ranges from 1 to 4 (where 1 is low, 4 is high
and 2.5 is average) regardless of the total number of internal factors used in the
analysis. If the total weighted score is less than 2.5 it indicates that the organization is
weak internally. On the other hand the scores 2.5 show strong internal position and
internal factor could be included IFE Matrix if the both factor strength and weakness in
case of Yeos company the total weighted score is above of average that means that
YEO’S company is strong internally.

13.3 EFE MATRIX

Key External Factors Weight Rating Weight

Score
Opportunities
• Bottled water consumption has increased 11 percent 0.07 4 0.28
• According to the industry survey, consumer are 0.05 2 0.10
drawn to new smaller beverage brands that are not
sold on a mass scale
• Asean Economic Forum Annual gathering grants 0.04 2 0.08
International voice.
• Less developed countries are desperate need to 0.05 2 0.10
improve community water supplies
• Energy drink sales expected to increase 7% to *% 0.07 3 0.21
after 2012
• Disposable income has increase 6.2 % 0.05 3 0.15
• Consumer are striving to drink and eat the way of 0.07 3 0.21
better health than previous generations
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• Threats
• Consumption of Asean beverages is denounced by 0.02 3 0.06
foreign officials in areas where conflict interest exists
• Multiple lawsuit against the new beverages for 0.04 2 0.08
calories burning claims in advertising
• Smaller, lesser known brands are turning to major 0.06 2 0.12
beer distributors for bottling
• Overall carbonated drink sales have been flat due to 0.10 2 0.20
links of sugar to obesity and high fructose corn syrup
to heart disease
• Marigold is more diversified offering beverage and 0.20 3 0.60
food products
• Many smaller companies are fierce competitors 0.08 3 0.24
around the world in their local markets
• High cost of commodities such as sugar, metal used 0.10 3 0.30
in production of cans
Total 1.00 2.73
EFE ANALYSIS :

Based on the above calculations it has been concluded that the company’s Total
Weighted Score is 2.73 which shows that the company is hugely successful in utilizing
its opportunities and minimizing the threats around it.

14.0 SWOT

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 SWOT Analysis

1.Good product quality

2.Strong brand name

3.It has science to back up their product and is proven to excel

Strength and maintain physical performance during competition.

1.Low advertising and visibility

2.People unaware about product benefits

3.High price for premium product (Soy Rich)

Weakness 4. Many varieties tend to confuse the customers.

1.Leverage successful brand marigold/Adabi etc

2.Advertise more

3.Celebrity endorsements

4. Tap into new performance products example Protein.

5. They could add a vitamin enhanced hydrator to compete with

Opportunity brands like vitamin water that take some of their target segment.

1.Threat from other  drinks competitors

Threats 2.Threat from substitutes like fruit juices

15.0 CONCLUSION

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 • The Yeo’s Company is a one of the beverage leading in Asean. Whether the
competitor like Marigold Company has been compete into sales and brand but
some of certain aspect of Yeos still have higher values towards their consumer.
The analysis of Internal Factor Evaluation Matrix (IFE) and External Factor
Evaluation Matrix (EFE) contribute to the strategies of planning growth and
identify the imports elements to improvements better performance.

• The position of yeos SWOT Analysis is based for best long run opportunities and
gain more profitability. It substantial to maintain or strengthen by develop a new
product to ensure that the product will gave the better satisfaction on tastier and
can attract the unpredictable customer. Yeos Company are encouraging use a
market penetration strategy by trying to influences the exits customer with
research and development of product in terms add values and concern of
reward belief when they used a products.

• Overall , yeos products can be accepted with the afford arable price with the
lower costly provided. Although, the new market development is a strategies that
yeos Company need to find out a new market such as expand more business in
Asean market looking forward to the lower cost of product, cheap labor and
considerations of rules regulations. The strategies generate more profitability
yeos Company as leading food & Beverages Company in the asean.

16.0 RECOMMENDATIONS
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Looking towards the future, the most important recommendation to Yeo’s is continuing
product innovation and expansion of their product line. The soft-drinks industry is fully
saturated with competitors. Also, the industry is no longer expanding, and market share
is actually decreasing as more consumers are looking to healthier options. By
continually introducing new products, Yeo’s will be able to increase their profits and
allow the company to continue to grow. Also, having a diverse product line will make the
corporation very stable, which is appealing to investors and creditors.

The support by government policies is important to help the Yeo’s company to penetrate
the markets with assist in Tax, tariff and others intensive.next with the government
intensive the research and development can be formulated to new entrants for new
development products and compete with the others competitors.

A second recommendation would be to sustain or increase the global market share.

Some of the promotion, international exhibition will increasing the profits and benefits to
return of investment of Yeos company. As known, Yeo’s is very well-established
globally, and is the global soft-drinks leader. This is very important to sustain because it
is the source of the majority of their profits. If they lose global market share, their profits
will decline dramatically.

A final recommendation for Yeo’s is to maintain and try to increase their brand loyalty.
with Research & Development , Commercial Innovation & Creative (R&DCIC) of product
will increase a advertising in media electronics to promote a product and services using
a (Social medium – Facebook,Twitter,Blog) related with Globalization. For the Yeos
product such as Healthier or juice drink has the second highest brand loyalty of all the
soft-drink competitors’ brands, and solid advertising campaigns will help maintain the
brand loyalty. They can also strive to obtain higher brand loyalty in all other brands, not
solely juice drinks. The brand loyalty is important because it will allow Yeo’s to sustain
profits and maintain their market share.

17.0 References

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http://www.euromonitor.com/asian-speciality-drinks-in-malaysia/report

Yeo Hiap Seng (M) Bhd in Soft Drinks (Malaysia)

Table 34 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume
2012-2017 , Table 35 Forecast Off-trade Sales of Soft Drinks (as sold) by
Category: % Volume Growth 2012-2017 , Table 36 Forecast Off-trade Sales of Soft
Drinks by Category: Value 2012-2017 , Table 37 Forecast Off-trade Sales of Soft
Drinks by Category: % Value Growth 2012-2017

Cadbury Schweppes. (2004). 2004 Annual Report. Retrieved February 17, 2006
fromhttp://www.cadburyschweppes.com

http://www.scribd.com/doc/24869765/Micro-Analysis-of-Soft-Drink-Industry-2008

http://www.thefreelibrary.com/
Alcoholic+and+Soft+Drinks+Sales+in+Malaysia+Are+Forecast+to+Increase...-
a0177667707

Datamonitor. (2005, May). Global Soft Drinks: Industry Profile. New York.
Reference C

http://research.maybank-ib.com/pdf/document/YHS_180613_4498.pdfode:0199-
0802.

Hein, Kenneth. (2004). Brand Loyalty 2004. Retrieved February 12, 2006 from

http://www.brandkeys.com/news/press/102504Brandweek.Loyalty.pdf

http://sbr.com.sg/food-beverage/more-news/yeo-hiap-seng-now-focused-
expanding-fb-business

Murray, Barbara. (2006b). Pepsi Co. Hoovers. Retrieved February 13, 2006,
fromhttp://premium.hoovers.com/subscribe/co/profile.xhtml?ID=11166

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