finally i've finished my outline for my strategy nonsense assignment...
i've decided to post it here for anyone who is interested in C K Tangs
If u r not interest abt C K Tangs... i think it's good to skip this post...
PS. Mini Garage has been updated..please check it out...
Name: See Ru Jun June
Student No.: 06029470
Batch No.: BBME10740A
Name of Selected company: C K Tang Limited
Brief of company
C K Tang Limited has grown from a humble store to one of Singapore’s premier retail company.
Founded upon the basic philosophy of honesty, integrity and value for money. C K Tang Limited aims to achieve their mission by continually setting tends and respond to changing need, fostering close relationship with their customers, staff and stakeholders.
Reason for selecting the company
As a all round retailer, I felt that it will be a enriching for me to understand how C K Tang Limited has established itself as a prominent leader in Singapore’s vibrant retail sense from a humble beginning.
Main Strategic issues facing the company
The company is currently facing the impacted by the uncertainty of the global economic situation with it’s root cause in the US sub-prime mortgage problems which has lead to the dampening of consumer spending confidence, causing consumers to tighten their belts. Too further affect the current situation the impact of the recent A(H1N1) virus is causing retail sales rates to slump even more as it forces people to stay away from crowded public places. This in turn has shattered fragile signs of a global economic rebound.
The increasing inflation has leaded to increasing human resource cost and rental rates for retail outlets have also continuously putting pressure on the operation cost.
Company’s contribution to National/ Regional
As one of Singapore’s major retail players, C K Tang has contributed to the second largest and fastest growing sector, the wholesales and retail sector. The wholesales and retail trade sector is accounting for 17 percent of Singapore’s GDP in 2008.
The retail sector is not only a vital part of the Singapore’s economy, it is also the key contributor of the service sector and employment rates. The industry employs 107,000 workers and is accounted for $ 4.6 billion of value added, generating $37.3 billion in operating receipts.
Recent strategic dilemma/choice
C K Tangs has recently expanded their TANGS store to Vivo city Singapore which is opened on Oct 2006 and Pavilion Kuala Lumpur Malaysia on Sept 2007.
Although operating and other expenses has cost a net loss after tax of $2.2 million, confident of the long-term potential of the locations of the new stores and continue to strive ensure that the operating performance improves as the new mall becomes established as preferred shopping destination for consumers.
C K Tangs has also begun to relook their retail strategy to improve their returns.
Source of information
- The Singapore Department of Statistics - http://www.singstat.gov.sg/index.html
- Singapore Exchange – www.sgx.com