Five Forces
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- Date Submitted: 11/13/2013 02:21 AM
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2.0 Analysis of macro-environment
2.1 Political & Legal Issues
Items which required to producing bread such flour, wheat and sugar are under government’s control. The price of these controlling products had been increase due to Pricing Policies and indirectly affects all the bakery industry in past few years. Additions, there is also financial irregularities of RM125m in Silver Bird due to poor corporate governance. The group had confirmed to ISO22000:2005 for Food Safety which enhances consumer confidence towards their processing quality, good manufacturing practices and hygiene standards.
2.2 Economic Factor
The rise of bakery products demand in Malaysia is in line with the population's growing affluence. The global economy continues to be uncertain. With Europe remaining volatile, the threat of a global downturn grows stronger. For Silver Bird’s core business, which is in wheat based consumer food, the financial year had been very challenging. Weather caused low yields of raw materials in producer countries which in turn drummed up prices for 2012 and the early part of 2013 deliveries. As a result, production cost has gone up marginally. (Silver Bird Annual Report, 2012, p.8)
2.3 Environmental/Ecological Factor
Energy usage has a direct correlation to the operating costs of the company and energy generation and consumption may be regulated or taxes applied to reduce energy use and associated emissions of gases such as carbon dioxide. Bulk storage facilities will be used for the storage of raw materials, finished product, chemicals used in the production process and for cleansing and disinfection, and fuel oils for energy production. These storage facilities should be provided with satisfactory containment to prevent spills reaching the wider environment.
2.4 Social Factor
Baked goods continue to face strong demand from consumers in 2012, as a result of rising health concerns in Malaysian society. Malaysians tend to switched to the consumption of...
2.1 Political & Legal Issues
Items which required to producing bread such flour, wheat and sugar are under government’s control. The price of these controlling products had been increase due to Pricing Policies and indirectly affects all the bakery industry in past few years. Additions, there is also financial irregularities of RM125m in Silver Bird due to poor corporate governance. The group had confirmed to ISO22000:2005 for Food Safety which enhances consumer confidence towards their processing quality, good manufacturing practices and hygiene standards.
2.2 Economic Factor
The rise of bakery products demand in Malaysia is in line with the population's growing affluence. The global economy continues to be uncertain. With Europe remaining volatile, the threat of a global downturn grows stronger. For Silver Bird’s core business, which is in wheat based consumer food, the financial year had been very challenging. Weather caused low yields of raw materials in producer countries which in turn drummed up prices for 2012 and the early part of 2013 deliveries. As a result, production cost has gone up marginally. (Silver Bird Annual Report, 2012, p.8)
2.3 Environmental/Ecological Factor
Energy usage has a direct correlation to the operating costs of the company and energy generation and consumption may be regulated or taxes applied to reduce energy use and associated emissions of gases such as carbon dioxide. Bulk storage facilities will be used for the storage of raw materials, finished product, chemicals used in the production process and for cleansing and disinfection, and fuel oils for energy production. These storage facilities should be provided with satisfactory containment to prevent spills reaching the wider environment.
2.4 Social Factor
Baked goods continue to face strong demand from consumers in 2012, as a result of rising health concerns in Malaysian society. Malaysians tend to switched to the consumption of...