Introduction to Management
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Introduction to Management AssignmentStudent Name: Jonathan Isaac Date: 27/02/17Student ID: CT0284411Class: PTDIPCOMGS17Company: Sheng Siong SupermarketTable of Contents1.Introduction¬†¬†¬†¬†¬†¬†¬†¬†32.PESTEL Analysis¬†¬†¬†¬†¬†¬†¬†¬†4Political:¬†¬†¬†¬†¬†¬†¬†¬†4Economical:¬†¬†¬†¬†¬†¬†¬†¬†4Social¬†¬†¬†¬†¬†¬†¬†¬†5Porter‚Äôs Five Forces¬†¬†¬†¬†¬†¬†¬†¬†6Threat of new entrant: Low¬†¬†¬†¬†¬†¬†¬†¬†6Threat of substitute products or services: High¬†¬†¬†¬†¬†¬†¬†¬†6Bargaining power of suppliers: High¬†¬†¬†¬†¬†¬†¬†¬†7Bargaining power of customers: High¬†¬†¬†¬†¬†¬†¬†¬†74 Management Recommendations¬†¬†¬†¬†¬†¬†¬†¬†8Conclusion¬†¬†¬†¬†¬†¬†¬†¬†9References¬†¬†¬†¬†¬†¬†¬†¬†101.Introduction The Sheng Siong supermarket chain was founded by the Lim brothers (Mr. Lim Hock Chee, Mr. Lim Hock Eng and Mr. Lim Hock Leng. Established in 1985, the first Sheng Siong store was set up at block 122 Ang Mo Kio avenue 3. Since then, the Sheng Siong supermarket chain has rapidly gained recognition and establishing itself as one of the largest supermarket chain with 43 outlets island wide. ¬†Sheng Siong supermarkets currently offers more than 400 variety of wet and dry products like¬†live, fresh and chilled produce, such as seafood, meat and vegetables while keeping their prices at a very affordable range. With their reputation growing, Sheng Siong supermarket has been awarded the Superbrands status in Singapore since 2008. Sheng Siong also has an extensive distribution network, warehousing facilities and food processing facilities to support their large retail operations. They are also HACCP (Hazard analysis and critical control points) certified for their processing of fish, seafood, meat, vegetables and dried food¬†from the receiving of raw materials to storage, processing, packing and transportation of finished product. Sheng Siong supermarket has excellent customer service, promotions and are also highly technologically advance which makes them a popular household brand. Primarily located in the heartlands of Singapore, Sheng Siong is still planning on expansion to reach more areas of the island in the future.2.PESTEL AnalysisPolitical:One of Singapore‚Äôs top attraction is the political stability of the nation. Singapore has a world-renowned reputation of being safe, having zero tolerance towards corruption and having a strong political leadership (Yahya, 2016). Low crime rate and zero tolerance to corruption will attract potential business investors to Singapore creating a stable economy. Singapore also holds third place in the world competitiveness ranking. Political stability and reliable infrastructure are key factors in Singapore. Businesses can be assured of safe and stable policies that will help them operate their businesses without having to worry about unstable economy. Professor Arturo Bris, director of the IMD World Competitiveness Centre, said: ‚ÄúThe new Government policy is towards trying to protect Singaporeans, their jobs and Singapore businesses.‚ÄĚ (Weizhen, 2015). These policies by the government helping Singaporeans protect their jobs and helping businesses grow, keeps household expenditures at a steady rate and businesses like Sheng Siong supermarket can capitalize on the fact that Singapore will maintain this safe and secure environment for them to grow and retain their business.

Economical:Singapore has continued to grow rapidly from a low-income country to a high-income country in the decades since her independence. Proving with an average GDP growth of 7.7% since independence and topping with an average 9.2% in the first 25 years of independence. Singapore being a high-income economy with a gross national income (GNI) of $52,090 per capita, as of 2015. (the world bank , 2016). Singapore constantly re-evaluates long term economic and political strategies to adapt to changes and priorities over time with focused measures in place for Singapore to develop as a world-class financial hub. These measures together with the strong political and macroeconomic stability, skilled and an educated workforce and excellent infrastructure have propelled Singapore to be the business and financial hub of Asia. Sheng Siong supermarket’s constant growth in business are attributed to these factors and the excellent customer service it provides. In 2016 however, Singapore has lost its coveted title as the world best place to do business. (Nee, 2016). One of the main reason Singapore’s loss of relative competiveness is the high cost of manpower. With the government tightening policies on foreign labour, companies like Sheng Siong supermarket may be affected as cost of labour in different sectors of their operation goes up. These are the economic factors which would greatly affect the business is they do not take necessary steps to adapt and change.SocialSocial aspects of the business are important to businesses in Singapore as have a very diverse culture with the core 4 races, Malay, Chinese, Indian and Eurasians. Singapore has long been battling the low birth rate which in turn could affect the economy. Policies have been put place like the placing laws giving parent four moths paid maternity leave and $18,000 cash incentives for parents who have 5 children or more to encourage parents to consider having more children. However, policies like this had low success with the fertility rate still at 1.24 in 2015 compared to the needed 2.1 to prevent a shrinking population in Singapore. (Khoo, 2016). To curb this rising problem, Singapore introduced the population white paper in 2013 bringing in foreign workers and expats to the country to meet the required working population. This policy although unpopular was necessary to be implemented as the low fertility rate poses a threat with the aging population. (Cheng, 2017). Sheng Siong as a retail business serving a wide variety of consumers have a social responsibility to different cultures and religion. With the high influx of foreigners and expats to the nation they adapt and provide different products for their customers. Importing more foreign brands of products will help diversify their business accommodating to more variety of people with different needs.

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Sheng Siong Supermarket Chain And Potential Business Investors. (May 31, 2021). Retrieved from https://www.freeessays.education/sheng-siong-supermarket-chain-and-potential-business-investors-essay/