Sunteți pe pagina 1din 9

The school of Business and Language

Course Code: MGT 215


Course Title: SKILLS FOR ACCOUNTANTS



GROUP MEMBERS : CHIN LI SIN (920208 12 5286)
DEBRA TAN (920518 12 - 5054)
EVELYN KONG YI HUA (930817 12 5248)
NADIA LINGHAM (930914 12 5362)
PROGRAMME : B.A. (HONS) IN ACCOUNTING (UH)
LECTURER : MR. DAVID LOW SUI MING
SUBMISSION DATE : 9
TH
NOVEMBER 2012



Section A: Group Assignment Report
1.0 Background Information on Apollo Food Holdings Berhad
Well over the beginning of the 21
st
century, societies of the world have seen new companies of different
industries evolve, while also witnessing the rise of small garage-based ones into large dominating
empires. While so many are developing before our eyes, some have also faded into the background losing
out to powerful opponents. Malaysia has prided itself with the well-known fact that its food has attracted
foreign visitors from all over the globe to its homeland for that one taste however; this statement is very
much a contrast to the struggles its food and processing industries are facing. Apollo Food Holdings
Berhad is one such struggling company failing to keep pace with todays fast running competitors.
(BursaMalaysia.com) Apollo Food Holdings Berhad though it is struggling with other competing brands
just like itself, it is well known among local citizens of its home country. Selling affordable and tasty
chocolate confectionary products and layer cakes, this local favorite is distributed to various countries
such as Singapore, Japan, India, Vietnam and so forth. Though liked by its people especially those of the
younger generation, it faces tough rivalry from other foreign brands namely those with a multinational
corporation bases. Such brands include Nestle, Kraft, General Mills, Cadbury and so forth. A variety of
factors could be behind Apollos tough battle against its opponents however; one obvious aspect that
definitely separates Apollo from its many threats is the degree of Research and Development (R&D)
being conducted within the Apollo operative itself.
1.1 Research and Development (R&D)
The functional area of Research and Development deals with operations concerning new product
developments as well as the adjustment and improvement of current product lines. Besides upgrading the
product content, the design itself will also be touched on by R&D. Upgrades made to existing product
lines are usually on-going due to the market research conducted by the company or the collection of
feedback from customers. The root reason why R&D is carried out within a company is to develop a safe
and usable product that is manufactured at a reasonable expense while also staying at a competitive price.
(Carysforth & Neild 2006)While it can be said that getting a product out there so that its visibility may be
strong is important; without a strong formula or competitive brand to battle it out with other challenging
opponents, a particular brand will still fall short even with it being noticed in the market. With the
constraints to trade loosened in recent decades, more companies have taken their brands into our market
in hopes of dominating. Increased supplier in the market will then boost competition between firms.
Apollo Holdings, if able to grasp the concept and allocate fully the opportunities obtained from product
Research and Development; may be able to both improve themselves to an increased efficiency and so
forth while most importantly, strengthening its position in the market due to the gained competitive
advantage.
2.0 Recommendations
2.1 Product Diversification
Apollo could definitely benefit strongly from an increased variety in their product catalogue as they only
have at the moment three types of products- wafer bars, swiss rolls and layer cakes.
(ApolloFood.com.my) While these have throughout the years been favorites of many people especially its
locals, it would not be surprising if some have already grown tired of the stagnant variety offered by
Apollo. It is understandable that Apollo may want to maintain their image as a food manufacturer strong
into those basic categories however; industries today sit in a society where consumers want choices and
differences, they want excitement and all things brand new. If Apollo is unable to cater to this current
trend, customers will see no reason and feel no hesitation in turning to other rival brands that more than
satisfy this want. One such brand that they would most certainly turn to would be Nestle. While both
Nestle and Apollo offer confectionary selections to customers; Nestle has the added advantage as not only
does it have other goods such as ice creams, beverages, culinary, baking foods and so on to gather
customer attention but most of its sub-brands have done significantly well. (NestleUSA.com) Thus it
comes as no surprise that the Nestle brand is a front runner in the food and processing industry while
Apollo does not even make the ranks. To have a strong position in the concentrated food industry, product
variation is definitely a must. Apollo should consider diversifying into other product lines would be for
the sake of having its existence remain in todays tough market state. A stagnant or narrow produce line
may only gather a finite number of customers. This would reduce efficiency as- Apollo being not really a
giant in its own right, its cost incurred for company running purposes may restrict potential for revenue as
the customer pool is generally small. (Clawson 2011) Product diversification may bring increased sales to
a company whilst also leading it to a whole new level as new audiences will be captured thus
strengthening Apollos position in the market. (Gordon n.d.)





2.2 Improving Product Appeal through Packaging
As said previously, society today is never satisfied with simplicity and plainness due to their liking of
outrageous designs and bright color schemes- even in their food. (Science Community of Consumer
Safety 2011) Package-designing though might be naively regarded as a small detail or chore in the
production process; it very much plays holds the key in determining whether a customer will purchase the
good or not. At the time of selecting products, a customer may not know how an individual food product
tastes or feels. However its outward appeal; from the way it is shaped to the way its colors glisten, will be
the yes or no factor to whether or not the product will be sold. It comes naturally for consumers to judge
products based on its outward appeal. Many are still unaware of the degree of importance packaging is as
they believe that taste needs to out-trump sight. While this may be true to certain extents, sight can just
easily out-trump taste. Apollos food goods for example, they may be delicious to the tongue but those
unaware of this may judge the quality based on the outside appeal. Apollo may come to suffer more if
they do not step in to improve their lackluster packing designs. Apollo should take a tip or two on how
their product packaging should be done as their merchandise lines are packed and marketed in the most
interesting methods. Nestle pays close attention on every detail of its products package as the are very
much aware that if ever a detail is imperfect or out of place, consumers may shun it for other brands.(The
Times 100 2012)
2.3 Working around Halal Restrictions
As a Malaysian-based food company, there will be requirements and restrictions on certain ingredients
and materials- such as alcohol, used in manufacturing individual food products. The confinements will be
stricter in this region as Malaysia values and upholds the practices and rights to religion constrictions.
Thus Apollo operatives will not be able to carry out food production according to newfound recipes and
formulas as easily as other foreign brands. Nestle and Kraft being international European brands, they are
confined to follow any requirements associated with religion and traditions. Thus they do not have an
upper hand when it comes to coming up with new ideas and recipes. As they do not have such rules
baring them from certain ingredients as well, their product variety will indefinitely be larger than
Apollos. While creativity may have its wings held a little due to these restrictions, Apollo needs to find a
way around this blockage if it wishes to have its presence truly felt in the market. Such a blockage should
not restrict creative ideas as product innovation and imagination should break all grounds and deliver
brand new forms of ideas. (Ministry of International Trade and Industry 2004)

2.4 Improve Methods of Production to Reduce Wastage
Research and Development is not just confined to improving the packaging styles and tastes of products
but how it may allow a company to carry on efficiently. Company efficiency here means thatthe best
possible methods of productions must be adopted so that maximum output may be obtained and the least
possible amount of wastage may be collected as it has been found that an eyebrow-raising 1.3 billion tons
offood made for human consumption purposes are being lost and wasted. Playing a role in such wastages
incurred can prevent firms from being efficient due to the cost wasted and potential pollution caused from
waste disposal. Research and Development on methods of disposing of such wastages must be found and
applied to operations for the sake of keeping the environment clean and also to keep costs down. Costs
may be affected from wastages as money spent on input materials are not returning as a hundred percent
output as two or three percent of the inputs will return as wastages. Better methods of production would
also improve efficiency as products will not only come out cleaner but near to perfection as well in
shorter periods of time. (Food Ingredients First 2012)
2.5 Consumers Hand in Helping
Efficiency may also be obtained when tedious and manual work is removed and substituted with faster
and better means of doing a task. Instead of having to send out surveyors and employees to customers and
potential customers doorsteps, social media tools such as Facebook may be used to generate feedback
from the similar parties as well. Such an improved concept of collecting consumer feedback and opinions
may also be used if ever the company faces a brainstorming-jam where ideas amongst team operators are
not coming smoothly. Two heads will always be better than one when ideas are being sought after.
Through personal customer feedback, Apollo will know which products of theirs are doing well and
which are not being favorable among customers. Such information is crucial when needed to improve
products, as they will aid in what should go and what should stay. Through such social tools, customers
or non-customers may lend in an idea or two to aid the company in giving customers the best possible
products. Another plus of using social media tools such as Facebook to obtain consumer feedback is that,
it takes up less time and customers will not bore over them as they do over normal paper surveys and
face-to-face interviews. It is from here that the R&D department will combine all rounds of ideas to come
up with the ultimate solution. The valuable data obtained from the study will allow operatives to come up
with a product that best suits the categories and categories of consumers in the market. (Gehman 2012)


2.6 R&D Centers in Understanding Different Customers
International brands like Nestle can be applauded under many grounds such as its diversification in
product lines and it coming top from its long run in the food market industry. They are able to maintain
their pace and position in the hectic food industry today due to its consideration of gathering improved
and increased understanding on the different cultures and cuisines held by its multiracial consumers
worldwide. Its move in opening a Research and Development site in India has been admired by many as it
taking time to learn more on the eating habits of the locals while also making the brand more homely
for them by using their home-grown ingredients and spices. (Nestle.com) Of course opening R&D sites
will most times need extreme funding however; Apollo should consider replicating Nestls move as not
only will it define the formers position in the market amongst other brands but customers will love
nothing more than brands trying to cater to their specific wants and preferences.
2.7 Improving Current Products
Known for their A-Z flavor of Layer Cakes, satisfying chocolate filled Wafer sticks and creamy swiss
roll; there doesnt seem to be much wrong with such a line of product while setting aside its narrowness
of course. It is simple and it is delicious. (ApolloFood.com.my) While that may be so, consumers are
always looking for improvements to current product states. Take an Apple iPhone for example; the core
element of each iPhone remains each time a new model or version is released however at each new
unveiling there is an increase in quality and satisfaction to consumers. While IT products and food
products come from direct opposites of market industries, the concept mentioned may definitely be shared
between the two. Apollo has developed such a strong foundation and reputation for such products, it
would be a shame to not follow on with it through flavor modifications and quality improvements. Take
its Layer Cakes for example, it has flavors ranging from Pandan to strawberry to chocolate to vanilla and
the list goes on. The flavoring liked my many, definitely has room for improvement. For one, Research
and Development operatives may opt to use real flavorings from strawberry fruits and vanilla beans rather
than that of artificial ones. By using natural food flavorings, its marketability will definitely increase by a
notch as consumers are always looking for natural alternatives for health purposes because the
harmfulness of artificial flavorings and additives are known too well. (Endyke 2008)



3.0 Conclusion
A company may no longer depend on individual aspects alone to survive the rising and ever advancing
industries. Companies need to be on par with the best not only in the functional area of Research and
Development but in other areas such as the sectors of Product Distribution, Marketing, Administration,
Sales and so forth. Todays fast paced society that never seems to sleep or blink, slow moving structures
will be left behind in favor of the mighty ones. Apollo definitely has the potential to further itself along
the lines of other competitive brands due to its strong foundation as a local favorite however; it has much
work to catch up on and this indefinitely would take time. With the right Research and Development
techniques and aids however; innovation and creativity may be brought thus making almost all objectives
of a company possible.
(2489 Words)














REFERENCES
1. ApolloFood.com.my, Apollo Food Industries, Apollo Food Holdings Berhad, Johor, viewed on 5
October 2012, <http://www.apollofood.com.my/product_info.php?cPath=77&products_id=241>
2. BursaMalaysia.com, Public Listed Companies, Bursa Malaysia Berhad, n.a., viewed on 1 October
2012, <http://www.bursamalaysia.com/market/listed-companies/list-of-companies/main-market>
3. Carysforth, C. & Neild M., 2006, BTEC First Business- Second Edition. [e-book] Heinemann,
London, viewed on 3 October 2012,
<http://www.teachmebusiness.co.uk/page29/page16/page18/assets/Functionalareas.pdf>
4. Clawson, T., 2011, The Benefits of Diversification, Santander UK plc, London, viewed on 7
October 2012, <http://www.santanderbreakthrough.co.uk/advice/strategy/benefits-
diversification>
5. Endyke, J., 2008, Healthy Eating: Artificial food additives affect childrens behavior, The
Holland Sentinal, Holland, viewed on 25 October 2012, <
http://www.hollandsentinel.com/features/x466652919/Healthy-Eating-Artificial-food-additives-
affect-children-s-behavior>
6. Food Ingredients First, 2012, Food Industry Needs to Improve Efficiency and Consider Social
Impacts, n.a., viewed on 28 October 2012, <http://www.foodingredientsfirst.com/news/Food-
Industry-Needs-to-Improve-Efficiency-and-Consider-Social-Impacts.html>
7. Gehman, S., 2011, 3 Ways to Use Social Media for Product Research and Development, Social
Media Examiner, n.a., viewed on 17 October 2012, <http://www.socialmediaexaminer.com/3-
ways-to-use-social-media-for-product-research-and-development/>
8. Gordon K., n.d., Pros and Cons of Expanding your Product Line, CEC Partners, n.a., viewed on
11 October 2012,
<http://www.cecpartners.com/articles/Brand%20Expansion/Pros%20and%20Cons%20of%20Exp
anding%20Your%20Product%20Line.pdf>
9. Ministry of International Trade and Industry, 2004, Malaysia International Halal Food
Conference - Malaysia and China - Strategic Partnership for the Development of Halal Food in
the Global Market, Ministry of International Trade and Industry, Kuala Lumpur, viewed on 15
October 2012,
<http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.article.Article_15f72f96-7f000010-
5e095e09-3cbccb62>

10. Nestle.com, 2012, Nestl opens first research and development centre in India, Nestle, n.a.,
viewed on 19 October 2012,
<http://www.nestle.com/RandD/News/Pages/AllNews.aspx?Name=research-development-
India&Category=Investors,CSV,Brands,Chocolate%20and%20confectionery,Coffee,culinarychill
edfrozen,RandD&Title=Nestl%C3%A9%20opens%20first%20research%20and%20development
%20centre%20in%20India>
11. Science Community of Consumer Safety, 2011, What makes products appeal to children or
resemble food?, Health and Consumers Scientific Committees, n.a., viewed on 9 October 2012,
<http://ec.europa.eu/health/opinions/products-resembling-food/en/l-3/3-resemble-food.htm>
12. The Times 100, 2012, Research and Development, Business Case Studies LLP, England, viewed
on 13 October 2012, <http://businesscasestudies.co.uk/business-theory/operations/research-and-
development.html>

S-ar putea să vă placă și