SWOT Analysis for Hwa Tai

SWOT Analysis simply refers to strengths, weaknesses, opportunities, and threats which represent an outline for analyzing a company's internal and external environment. Strength and weakness are referred to the internal environment whereas opportunity and threat are referred to the external environment of Haw Tat. It will give a quick review for the company for decision making.

Strength

Strengths are concern about the competitive power in food industry of Haw Tat. Haw ATA have competitive advantage to become second best biscuit manufacturing company in Malaysia. Haw ATA has invested high cost in research and development in order to produce better quality products to attract more buyers. Haw ATA has core competence of strategic capability to achieve competitive advantaged since they try to produce new product developed new market opportunity. Under Resource-Based View, Haw ATA has tangible resources which also known as physical resources, Haw ATA has its own lab and professionals to conduct R are a ways of achieving market efficiency. Haw ATA has also intangible resources which is technological resource to modernize the existing products to satisfy the customer's expectation.

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Haw ATA Has Dynamic capability because the company try to produce new product will renew and recreate strategic capabilities to meet the need of changing environment. This Resource-Based View enables Haw ATA to allocates their resources effectively and could be achieve cost effectiveness without resource wastage. The strategies effort of Haw ATA has eventually achieve a lot of awards for its biscuit products such as Malaysia Power Brand Award 2008  by the Asia Entrepreneur Alliance Worldwide.

Weakness

On the other hands, Weakness is a limitation in firm's resources and may create imperative disadvantage. Haw ATA has its own weakness although it has been achieving success with their strength. Haw ATA has limited existence of organic food since consumers nowadays have care about their healthy. According to survey, Buyers have preferred organic food to normal food because they think those organic foods which free from chemical are healthier.

Only the product with the brand name of "LUXURY fulfills the requirement as organic food because they contain whole meal, wheat and low cholesterol which consumers think that they are healthier. However, the other products of Haw ATA still not be grouped as organic food and this ay caused Haw ATA lost some market opportunity which loves organic food and their sales will not be as high as what Haw ATA expected. Benchmarking as analytical tool for internal analysis Benchmarking is a system which understanding how Haw ATA compares with others which normally include their main competitors.

After We analyzing, we found that Nestle is a more successful company compared to Haw ATA. Unlike Haw Tat, Nestle has diversification and manufactured a numbers of products because Nestle has SOOT analysis for Haw ATA By takeaway competitive disadvantage, Haw ATA should improve and develop a numbers of new reduces besides the current type of products although it has been making non- traditional product such as baked potato chips to suit the consumers' taste but new market opportunity failed to discover since they don't have well strategic planning on the new product.

Haw ATA has only three types of food which involve of biscuits, cakes, and snacks currently whereas Nestle has more types of food such as drinks, instant noodles, biscuits, cakes, snacks and so on. Wider range of food enables company to gain wider market and higher sales. If Haw ATA does as what Nestle did, it ill as successful as Nestle.  Types of resource and their competence Resource: "what we have" Competence:" what we do well" Machines, Buildings, raw materials, products, patents, data bases, computer systems.

Physical Ways of achieving utilization of plant, efficiency, productivity, flexibility and marketing Balances sheet, cash flow, suppliers of funds Financial Ability to raise funds and manage cash flows, debtors, creditors etc Managers, employees, partners, suppliers, customers Human How people gain and use experience, skills, knowledge, build relationships, motivate others and innovate.

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