Challenges in International Business

Topics: Southeast Asia, Asia, East Asia Pages: 2 (672 words) Published: November 27, 2011
GunungRapatHiongPiahSdn. Bhd. (579801-M)

Since the Gunung Rapat Hiong Piah Sdn. Bhd. is responsible for the food manufacturing, wholesale distribution, and export of Yee Hup products, it is facing physical challenges in international business on products, workforce and even physical distribution challenges. For the products challenge, it may face the problem on warranty since there are no warranty available for this products. Everyone is know about the Yee Hup is a local business in Malaysia and it needs to spend certain of time to export such products to oversea such as Southeast Asia, Oceania, Middle East, Eastern Asia and Western Europe. When the products are on the way shipping to the particular country, it may has the probability to encounter damage such as crushes because of the unpredictable cases and it is unrealized since the biscuits are packaging in a package, but even in a carton size. The Yee Hup biscuits are selling to the customers without realized that the products are crushes and the customers are not available to get the warranty or compensation after they bought the products. It considered a challenge of this company because on the customers’perception, no warranty offered is bring the meaning that the company has no confident on their own products. Since the ‘customers are always right’, Yee Hup may lose the sales because of the products deficiency. For the workforce challenge, although the company is almost full automated in the production process, skilled staffs are still needed. For example, retail assistants as Yee Hup required such retail assistant with previous retail experience because the full trainingis not necessary will be provided. In this case, Yee Hup is facing the shortage of workforce although the labor market is enough large. Moreover, the number of R&D staff is merely less than five people. It becomes the stones in designing products since people are more pay attention in packaging nowadays. And...
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