Quality Slides

Slide 1: 

Stakeholders Meeting 21 July 2008 Ken Hong Seng Tat Kee Trading

Agenda : 

Agenda Company Background Nature of Business Current Infrastructure Industry Background Industry Trends Industry Growth Target Consumers Key Competitors SWOT Production Expansion Sales & Marketing Recommendations Recap Q & A

Key Purposes : 

Key Purposes

Company Overview : 

Company Overview Background Business Infrastructure Operations 1988 1992 Factory in Malaysia Salt Tamarind Head office in Singapore Households Restaurants Hawkers Seasoning Flour Powder Grains Beans Seeds Sauces Condiments Wholesalers 30% imports Singapore Malaysia Brunei Processes raw materials

Company Background : 

Company Background QUALITY MUST BE OF CONSISTENT STANDARDS & FOOD FIT FOR HUMAN CONSUMPTION

Slide 6: 

Knowing, Understanding, Maximizing Understanding the Industry

Food Processing : 

Food Processing Methods and techniques used to transform raw ingredients into food for human consumption Good processing techniques, and proper packaging, transportation and storage food can play a significant role in reducing spoilage and extending shelf life

Challenges : 

Challenges Retaining nutritional value, flavor, aroma, and texture of foods Presenting in near natural form with attractive added conveniences at low incremental costs Physico-chemical parameters and sensory evaluations providing the only means of benchmarking

Industry Trends : 

Industry Trends Reduction of Fat Content As time progresses, people progresses…

Industry Growth : 

Industry Growth Growth of food processing sector nearly doubled to 13.7 per cent during last four years Target growth to 20 per cent by 2015 Investments buoyant Processed food sales worldwide; US$3.2 trillion (2004)

Slide 11: 

Good quality products to capture consumers’ hearts

Key Competitors : 

Key Competitors

Key Competitors : 

Key Competitors Pure Harvest Leader in the natural and organic food industry Highest quality of natural and organic ingredients Trend moving towards having healthier choices A threat to Ken Hong Seng Tat Kee Trading as both sells beans Disadvantage: Expensive

Key Competitors : 

Key Competitors The Prima Groups Variety of products Established reputation; first few flour millers in the whole of South East Asia Experience leading to customers’ trust and loyalty Recent food poisoning case that caused turmoil in Singapore

Slide 15: 

Large variety of products Larger shelf space & larger market share Cater to different needs of customer Providing satisfaction and building up trust Usage of good quality ingredients as their marketing strategy have helped them established a good reputation Insufficient advertisements Causes unawareness Dependent on loyal customers to spread the word Ken Hong Seng Tat Kee Trading not a listed company They do not have much funding Many limitations to what they can do China-ASEAN free trade agreement established by 2010 Many business opportunities to break into the market of China Few organic companies in current industry Preferences shifting towards healthier choices Increasing oil prices Put a toll on the company’s operation cost Unlisted company with limited funding Would make the company reconsider expanding its business

Slide 16: 

Building Blocks… Production Operations

Entry Modes : 

Entry Modes Core Entry Mode Foreign Direct Investments Begins as a small venture Expands when the opportunity appears

Considerations : 

Considerations Governmental Stability Security Risk Economy Foreign Relations Rental & Utilities Transportation Population Size Labour Cost

Countries : 

Countries

Slide 22: 

Inefficiency Inconsistent Legislation Corruption Harsher penalties Reduce civil unrest ASEAN FTA Indo-Japan Economic Partnership GDP below projected rate Tax & Disbursement Deficit High Inflation Increased Wages 237,512,355 People Unemployment 9.6% Agriculture 43.3% Severance 30times salary Transportation 8.72% Rental SGD$(30-250) per month

Slide 23: 

“Harmonious Social Development” Build an “Equal Society” by 2020 Controlled corruption Free-Trade Area with SEA Improved railway lines & port facilities Factory size 1200sqm - $7000 per month Utilities $600 per month 3rd Largest Economy Abolished Agricultural Tax Improved infrastructure & telecommunications GDP > 10% 1.3 Billion People Growing Population Unemployment ? 4% to 4.5% 47% agriculture industry

Slide 24: 

Deteriorating infrastructure Competitors strategic investment High utilities Largest Economy Economic downturn and financial crisis May recover only after 2010 High inflation World Super Power Growing discontent with President Bush Freight ports, airports, bridges, roads, rail and transit networks Contributed more than $1 for every $10 produced in the GDP 303,824,646 People Serious tensions between races Presence of Terrorism

Slide 25: 

The mechanism behind profit Sales & Marketing

Considerations : 

Considerations Governmental Stability Security Risk Economy Foreign Relations Knowing Competitors Well Transportation Population Size Competitors Price Level

Countries : 

Countries

Slide 32: 

New insights, new dimension Recommendations

Recap - Production : 

Recap - Production

Production : 

Production

Recap – Sales & Marketing : 

Recap – Sales & Marketing

Recap – Sales & Marketing : 

Recap – Sales & Marketing

Sales & Marketing : 

Sales & Marketing

Conclusion : 

Conclusion China India Cambodia

Slide 39: 

Thank you for your time… Question and Answer