Old Town White Coffee

Topics: Strategic management, Marketing, Coffee Pages: 14 (3902 words) Published: October 4, 2014
Executive Summary
The purposes of this written project are to overview the Oldtown White Coffee (OTWC)’s vision and mission statement; analyze the company’s external and internal environment by Porter’s 5 forces and SWOT analysis, accessing their existing strategies and lastly strategy recommendation to improve the company market growth. The project was carried out by corporate literature on web-based of the company and interviews the company’s top management. The findings indicate that OTWC faces high treats from new entrants, high bargaining power of buyers, high competition from rivalry, moderate bargaining power of supplier and low threat of substitute products. OTWC would have favorable market growth in the future with competitive advantage on its strong brand name and large revenue for investment. Vertical expansion into food service industry via franchising and licensing method have enable OTWC rapid expansion to international market. Diversification into food kiosk and “Ready –to-drink” white coffee product enable OTWC to penetrate to untapped market.

1.0 Introduction
1.1: Background of company
White Café commenced its operation in 1999 with own formulated 3-in-1 instant white coffee and successfully commercialized under the “OLD TOWN” brand name for retail sector. In 2000, “Old TOWN” white coffee was first export to Singapore which has created extra miles for their business demographic expansion.In 2001, varieties of instant white coffee were introduced and moreover these products were successfully export to Hong Kong. White Café accredited Halal certification from the Islamic Religious Department of Perak for the company’s beverages in 2002. In 2004, the company spread out their export of 3-in-1 einstant coffee to United States, Canada, United Kingdom and Indonesia and expanded its export to Japan and China in 2006. The company expanded vertically to Food and Beverages (F&B) café chain named “OLDTOWN WHITE COFFEE (OTWC)” in 2005 with the notion of Ipoh coffee shop setting and environment in 2005. The group has now expanded to reach 196 outlets in Malaysia, The company incorporated as Oldtown Berhad in 2007 which focus on investment holding and provision of management services pursuant to its listing on the Main Market of Bursa Securities. 1.2: Interviewee’s details

This assignment is required to interview one of the Top Management Staff of the selected company. However, efforts made to interview the Group Managing Director, Lee Siew Heng or other top managements have been turned down. Instead, I managed to conduct a telephone interview with Bel Leong, the Quality Assurance Manager of OTWC chain café outlets. In view of limited information given by the interviewee due to the nature of his job, further information has been gathered from the company’s website, annual reports and various reputable business portals to carry out various analyses of the company.

2.0 Interview Results
2.1 Company’s direction: Vision and mission statement
Vision
To be Asia Pacific’s Leading White Coffee Producer providing high quality products to customer globally. Mission
We promote our Unique Malaysian Taste-the authentic Ipoh White Coffee and continue White Coffee Legacy through continuous improvement and innovation that exceeds customer expectations. We take pride in distinguishing ourselves to be ahead of the pack. By setting precedence, we have made a standard that equals excellence, pushing other brands to do the same. We embrace diversity, accept challenges, adopt international standards and good business practices and at the same time, hope to inspire the rest to follow suit. We strive for continuous improvement, incorporate innovations and technology in our commitment to create customer value in our both products and services. Aligned with transparent policies and achievable targets, together with our core values, we are able to move forward as one responsive team and deliver...

References: 1) Calories to be cut by major food and drink companies. (2012, March 24). BBC News. Retrieved 2012, October 23 from http://www.bbc.co.uk/news/uk-17496660
2) Economic Census (Food and Beverage Services) (2011)
Retrieved November 23, 2012 from
http://investing.businessweek.com/research/stocks/people/board.asp?ticker=OTB:MK
8) OldTown finds favour amid uncertainty. (2012, October 17). The Edge. Retrieved 2012,
October 23 from http://www.theedgemalaysia.com/in-the-financial-daily/223173-oldtown-
finds-favour-amid-uncertainty.html
9) OldTown Berhad Annual Report (2011).
10) Oldtown plans for double digit growth (2012, February 3). The Edge. Retrieved
2012,October 23 from http://www.theedgemalaysia.com/sports/200393-oldtown-plans- for-double-digit-growth.html
11) Oldtown assures food, drinks served halal (2012, October 12). Business Times.
Retrieved 2012, November 14 from
http://www.btimes.com.my/Current_News/BTIMES/articles/20121012174405/Article/
12) The Star among top 30 most valuable brands (2012, October 10)
2012, Nov14 from http://biz.thestar.com.my/news/story.asp?file= /2012/10/10/business/12149120&sec=business
13) The White Coffee champion (2012, April 20)
2012 from http:// www.insage.com.my/ir/cmn/downloading.aspx?sFileName...RR
14) Europe coffee: Robusta in demand as Vietnam 's harvest starts (2012, Oct 5)
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