Defines loaf of bread off its line

March 2, 2019 Economics

Defines the internal and external factors of a company or organization and clearly identifies the capabilities, customers, potential customers and the business environment and the impact they may have on that organization or business.
It can also help in identifying strengths, weakness, opportunities, and threats to the organization or business. This analysis can be eye-opening to what’s really going on within a business and can help in determining the next steps a business needs to take within the marketplace (LAKE, 2017).
Situation Analysis Gardenia Bakeries (KL) sdn. Bhd rolled the first loaf of bread off its line in 1986. Within four short years, it becomes the bread market leader. Gardenia has for many years been at the forefront of producing fresh, tasty and yet nutritious bread. Gardenia flagship bread has improved through the years, becoming better and better each step of the way. Today, it is known as Original Classic and enriched with 14 vitamins and minerals. To meet the changing expectation of today customers, Gardenia is constantly adopting industry innovation, new baking techniques and product development.


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Internal analysis mean performs a comprehensive assessment of the potential strength of the internal environment and weaknesses. There are many external environment, firstly is demographic environment , Demographic environment is study of human population in term age, density, Gender, location, occupation, race, size, and others statistics. Basically, demographic environment has major implication for business, because the demographic environment involves people who play an important role in making up the markets. Generally, populations are becoming more educated. The rising number of educated people will increase the demand for quality products especially when health is highly concerned nowadays. Gardenia has come out Gardenia Breakthru, a health conscious product. Gardenia Breakthru is formulated with beta glycan that can help to lower cholesterol level and stabilize blood glucose levels. Economics are factors that affect consumer purchasing power and spending patterns. Consumers are different occupations will have different income levels and thus they will have different spending patterns. For instance, high and middle income level consumers will demand for a better standard of living, they demand for good quality products, same goes to foods like bread, although it is a daily basic need, but for high and middle income level consumers, they will likely or tend to choose a high quality and features products. Consumers with higher income will choose those breads which are more expensive such as Toast’em (one of Gardenia products) that offers special features like raisin oatmeal. On the other hand for low income level consumers, when they are making decisions to purchase something, they will try to reduce the expenses incurred, so they may just buy a classics white bread to fulfil their daily basic need. Hence, a company’s marketing plans might be influenced by this economic force. Furthermore, The political environment contains of laws, government agencies and pressure groups that influence and limit various organisations and individuals in a given society. The last external environment is technology, Technology brings to mind scientific advances such as information technology which is having resulted in the Internet, cell phone and many more. To improve the producing speed and bigger market, Gardenia forced to upgrade the technology in the factory. In the year 1986, Gardenia produces about 3,000 loaves a day without machine. In the year 1991, Gardenia can produce about 6,000 loaves an hour capacity with using bread maker machine. In the year 1994, the technology upgrade, Gardenia’s machine also upgrade and can produce 10,000 loaves. Now, each of the Gardenia’s factories with six fully automated bread lines, each of the factories can produce more than 900,000 fresh loaves a day. Now Gardenia is the largest bread producer in Southeast Asia.

Internal is an opportunity to introduce new products or services that can generate lucrative income. It can appear when a change occurs in the external environment. Typically, this change is said to be a threat to the existing product market position and may require changes in product specifications or new product development in order for the company to remain competitive. The structure organization Gardenia has a Halal committee. At Gardenia, a special Halal Committee is formed for scrutinise every aspect of the Halal regulations and to ensure that all requirements are stringently adhered. As an added measure to control and safeguard Halal status, Gardenia has appointed an Independent Syariah Advisor whom Gardenia could refer to ‘syariah’ related matters. Gardenia products are certified Halal by JAKIM. Regular factory inspections are conducted by officers from JAKIM to monitor and ensure that the overall operations are following the guide lines set by them.

SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Gardenia. The strengths of Gardenia in Malaysia are that it has brand strength in marketing. Gardenia has built up a very strong brand in Malaysia, it almost generic to the product categories. Since Malaysian is mind set, when they think about bread, they think about Gardenia. As we can see its product is being sold in whole Malaysia, which is nationwide. Everyone can get it easily from grocery shop, minimarket, supermarket and hypermarket. Besides that, Gardenia also has the strength in product innovation, as we can see that it continuously introducing new product and keep bringing more choices to the customers. Moreover, Gardenia, in their move to develop health bread has teamed up with a group of a researchers attached to a medical faculty from a local university, to formulate bread using special functional ingredients. On the other hand, Gardenia is involved in social work. Every day, it deliver complimentary fresh bread to over 45 charitable organizations like old folks home, orphanages and centres for the disabled, eight of which have been on Gardenia delivering list since 1991. For continue and maintain this strength, Gardenia should do more promotion through media such as newspaper, television and radio. The advertisement should contain creative and funny element so it could easily attract more customer. To make the product fully nationwide, Gardenia should increase more and more retailer in the future in order to reach its product to every Malaysia.
The weakness of Gardenia is about its packing. Until now, the baked products that produce by Gardenia are still weak in its packing, which is not enough attractive. Conversely, the packing of High 5 are more efficient than Gardenia. There are some sample and comparison between Gardenia and High 5 according to the packing. The packing High 5 is more attractive with its colourful plastic bag and the vivid design. For overcome this problem, Gardenia should put more effort on the packing. For example, Gardenia can distribute survey from to the public by asking them what kind of packing could more attractive. Gardenia could hire some designer to design the packing that they desired. Why packing is so important? It is because for the first buyers who never know about the product, they will buy the product based on packing. That why Gardenia should improve their packing in order to gain competitive advantage.
The opportunities Gardenia is working closely with the National Diabetes Institute (NADI) on the ‘Fight Again Diabetes’ programme, a major educational drive to bring public awareness on the prevention and management of diabetes. Now, Malaysian has more knowledge in nutrient and they are emphasize the nutrient contains in food and the calories of food, before they are going to buy the food in the package they will look at the label of contains nutrient in the package to help them choose food which is more wisely. They will watch for these key terms and know what they mean. Malaysian people are more concern to the calories, fat, cholesterol and so forth they taking in the food daily. For example, they try to eat food less salt, sugar and oil to keep them healthy. Thus, Gardenia will keep working hard to produce more healthy bread in order to fulfil consumers needed. Increase number of working youth increasing number of working youth in Malaysian cause an increasing demand in convenience for everything for life. For example incensement for demand to fast food (KFC, Pizza Hut and Mc Donald) instant drink (soft drink , Milo and Soya. This is because they are too busy in working. For this reason, Gardenia hopes to bring a convenient and healthy meal for these busy groups. Gardenia is always standby to provide a convenient and healthy.
Threat that Gardenia through is potential competition from an already established market participant. There are a few bakeries companies which compete with some smaller bakeries which are my family owned, structured and are usually started as a single shop before extending to more outlets. These family bakeries however, do not only emphasize on the bread products, but also produce higher margin delicacies such as cakes and cookies. These bakeries operate in the city where the flow of people is high and most importantly, where the more affordable working group is among the few local confectionary retail chain shops are the King confectionary, which started in 1973 in Kuala Lumpur and now with 49 retail outlets, the season confectionary and Bakery, the angel cake house.

Market Trends Nowadays consumers are generally health conscious and prefer bread with nutrients and less sweet. Gardenia Malaysian believes strongly in ensuring that consumers enjoy the finest quality and freshest bread daily. Gardenia Assurance very seriously and consumers of Gardenia products are aware of our commitment to the highest quality. food safety and freshness. To cater to Malaysians changing demands and lifestyle needs, Gardenia’s marketing and R&D teams are constantly researching and exploring new product innovations. For example, we were the first in Malaysia to identify an unmet demand in the market for low glycaemic index bread to meet the special dietary needs of diabetics as well as for weight management. Even though awareness of glycaemic index and its correlation to our blood sugar level (low glycaemic index foods result in slow release of sugar in the blood and is hence diabetic-friendly) is still in the infancy and as such, low glycaemic products are still considered a niche market, figures show that diabetes in Singapore is unfortunately on the upward trend and this is a group of people whose needs are not sufficiently addressed. For example, for Gardenia Breakthrough breads, tis not only a bread, but consumers have the perception that it is a healthy food. It is consists with Beta Glycan which helps to lower cholesterol, this has been clinically tested and certified Diet Friendly by the Glycaemic.
Research Institute, Washington D. C because it has Low Adipose Tissue Fat-Storing Capacity and will assist our body in having better control over obesity. It is also certified as Diabetic Friendly which helps to maintain stable blood sugar level that typically follows a meal. It is also have 38 % less carbohydrates , 7.3x more dietary fibre , 15 % less calories , 59 % more proteins , low glycaemic index 42 ) , low glycaemic load ( 6. ) prebiotic properties , low fat , no trans-fat and no added sugar too. The market trend is showing continued growth in all direction of healthy lifestyle (LING, 2010).


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