China Doll Synopsis

SWOT ANALYSIS

STRENGTH

  • Have skilled trained by British master cutters.
  • A high quality manufacturing
  • Experience work with European country
  • High quality of design ready to wear
  • Aware about employees welfare 

WEAKNESSES

OPPORTUNITY

  • Attract more customer based from Europe
  • Expand more branch within and outside Malaysia Leave Malaysia Hire cheaper employees in China to reduce cost Improve in technology 

THREAT 

  • Price competition with China manufacturing Kiki and Houida want move to China

The PESTLE Model

Political: Definition: What is happening politically environment in which business operates. For example: Represent the way and the extent to which a government influences the economy and a certain business. Political factors are represented by specific areas, such as labour law, tax policy, tariffs,trade restrictions and even environmental law.

For example based on HCF:

  1. If Jefry Tan expending their business to China. China and Malaysia have two way relationship.
  2. Malaysia have politic relationship with Europe when HCF export their textile to Europe, indirectly it can give a good impact to Malaysia.
  3. One of the reason why Europian and Malaysia houses were looking at importing cloths from China at very low price because Malaysia have strict trade barries.

Economic: Definition: what is happening within the economy. For example :economic growth/decline, interest rates, exchange rates and inflation rates, wages rates, minimum wages, working hours, unemployment (local and national), credit availability and cost of living. For example based on HCF:

  1. Unemployment in Malaysia will increase when Petter Tan make decision to shutdown the Penang factory
  2. In 1997, Malaysia was facing financial crisis because of foreign change market volatility indirectly manufacturer with foreign customer were unable to owner their contract price as exchange rate fluctuatec.
  3. When HCF loose their customer Kiki and Houida, they will faced the big problem indirectly goverment income will decrease also.
  4. Most of HCF customer are from International Country, all the customer will spend their currency in our country, so it will increase the currency of our country.

Sociological: Definition: What is occurring social in the markets in which business operate or expect to operate For example: cultural norm and expectations, health consciousness, population growth rate, age distribution, career attitudes, emphasis on safety, global warming. For example based on HCF:

  1. Bevley Tan, Human Resource Director of HCF had introduced the employee share option scheme to enable employees to own share in the business. This in turn had created a sense of belonging among the employees as well as enabled them to gain returns.
  2. If HCF close 2 factory in Jitra and Chieng Mai, the factory would become a heaven a drug addict because HCF would have found difficulty to sell these 2 factories.

Technological: Definition: What is happening in technology-wise which can impact what you do. New technologies are continually being developed and the rate of change itself increasing. For an example: Refer to automation, incentives, the rate of technological change and R&D activity. These factors greatly influence other areas or aspects, including the minimum efficient production level, quality, costs and even outsourcing decisions.

For example based on HCF:

  1. HCF will increase new skill, knowledge, tecnology because they have a relationship with other country. For example, technology in China is more advance than Malaysia.
  2. When HCF joint venture factory in China, indirectly they will exchange their technology, so it will improve their technology skills.

Legal: Definition: What is happening with changes to legislation. For example:This may impact employment, access to materials, quotas, resources, imports/exports, tax and etc. For example based on HCF : 

  • HCF should follow a rules and regulation when they want to expand their business to China and follow the trade barries when export their product.

Environment: Definition: What is happening with respect to ecological and environmental issues. Many of these factors will be economic or social in nature. For an example: Refer to all the factors directly related, influenced or determined by the surrounding environment. This includes, but is not limited to weather, climate, geographical position, climate change and even insurance.

For example based on HCF:

  1. When the factory was established, the environment also will be effected with pollution. The pollution include water, air and etc. This will be give a bad impact to the wheather and health of people around the area.

REFERENCES

  1. China Doll. (2011, December 29). StudyMode.com. Retrieved http://www.studymode.com/essays/China-Doll-884274.htmls 
  2. Integrated Case Study in Accounting, Volume 1, (2010), Malaysia Institute Accountants Publication (MIA)
  3. Case Study, China Doll, Report On Case Study, Retrieved from http://www.termpaperwarehouse.com/essay-on/Case-Study-China-Doll/91557
  4. China Doll, Retrieved from http://www.papercamp.com/essay/40254/ChinaDoll
  5. China Doll Case Study Retrieved http://www.oppapers.com/subjects/china-doll-case-study-page1.html