International Business

10 October 2016

Earlier on, biscuits were regarded as part of people who were ill, but at present is one of the most preferred fast foods across various age groups. This was the time when the urban population was looking for ready-made food at a convenient cost. The London Biscuits Berhad (LBB) is one of the most prominent biscuits brands in Malaysia. The company was established during 1981 and till today has managed to maintain a distinctive position in the Malaysia biscuits industry.

London Biscuits Berhad was operating on a small scale with a few production lines the company’s main business was manufacturing corn-based snacks from its rented factory premises in Tampoi, Johor. Dato’ Sri Liew Kuek Hin as a board of directors London Biscuits Berhad saw the potential of turning the company around to become a leading food manufacturer in Malaysia. Through financial allocations provided and management practices, the entry of the Dato’ Sri Liew Kuek Hin brought new and progressive winds of change to the company.

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It have own 12 factory premises linked with production, warehouse and office facilities with 600 person employees. In an effort to raise funds to expand its business and establish a presence in the Malaysian corporate world, the company decided to initiate an Initial Public Offering on the Malaysian Stock Exchange and now, London Biscuits Berhad was successfully listed on the Second Board of Bursa Malaysia Securities Berhad in January 2002. 18 months after its maiden listing on the Second Board, LBB finally qualified for a listing on the Main Board in September 2003.

London Biscuits Berhad engaged in manufacturing and trading of snacks, the company offers packed and ready to eat products, which can be categorize into corn based snacks and cake products, such as Swiss rolls, pie cakes and layer cakes. In addition, it also manufacturer range assorted chocolate confectionery, including chocolate-coated peanuts and biscuits, pancake cookies, jelly and puddings, wafer sticks, cup sticks and snack noodles. Some of the London Biscuits products are marketed under the popular brand names of Lonbisco, London, Kinos, Gega, Caca, Mizu and Hiro.

May 2005, London Biscuits Berhad undertook the acquisition of Kinos Food Industries Sdn Bhd, the decision was made as Kinos, with its existing factory and food industry business, offered London Biscuits the perfect opportunity to increase production capacity with minimal capital expenditure. This major acquisition was a significant step in the continued growth of London Biscuits as it held unrealized potential in term of synergized business between the two companies.

With growing demand for its products, London Biscuits Berhad realized the need to strengthen its corporate image and reputation, the company has fine-tuned the process of making cakes with long shelf life, of 8-12 months without refrigeration. LBB popularity has grown because they can be carried easily and they offer a wide variety of tastes and are also not that expensive. Now, London Biscuits has six factories operating at near full capacity in Ulu Tiram, Johor and Kinos has two factories in Pasir Gudang, Johor. . 1 Overseas Market: HONG KONG Overseas business by a company refers to undertaking and expanding its commercial activities across the national borders. It encompasses diverse nature of activities like trading (exporting and importing its goods and services) manufacturing and marketing as well as outsourcing for production and marketing. The main reason every company for making such overseas investments is to explore business opportunities abroad and take advantage of such opportunies.

Every company, must their business is thriving and known from within and outside the country. As well as London Biscuits Berhad, in establishing the company’s business strategies, Dato’ Sri Liew Kuek Hin has decided to invest abroad the London Biscuits. The strategies it’s successful, now London Biscuits products can be found in Malaysia and in more than 65 other markets, worldwide. Its main overseas markets are China, Hong Kong, Macau, Indonesia, Singapore, Taiwan, Thailand, Vietnam and the Middle East. More focus to main overseas market is Hong Kong.

Hong Kong is one of the two special administrative regions of the people’s republic of China, the other being Macau. The population of seven million people, Hong Kong is one of the most densely populated areas in the world. Busy country and the population is bigger, London Biscuits Berhad take opportunist to open their market in Hong Kong. Dato’s Sri Liew Kuek Hin saw the opportunist and he know LBB suitable for this country because London Biscuits can be carried easily, ready-made food, offer a wide variety of tastes and are also not that expensive.

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International Business. (2016, Oct 02). Retrieved August 16, 2019, from https://newyorkessays.com/essay-international-business-3/
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