More Related Content Similar to Economics Research Report Similar to Economics Research Report (20) More from ashleyyeap (20) 3. TABLE&OF&CONTENTS&
NO. TITLE PAGE&NUMBER
1 Ar?s?c!Cover A
2 Cover!Page 1
3 Table!of!Contents 2
4 Summary 3
5 Descrip?on!of!History!of!Business 4
6 Research!Report!
i. Brief!Biography!of!the!Businesses!
A Brief!Descrip?on!of!the!Businesses!!
A Similari?es!&!Differences!of!Both!Businesses!!
ii. Compara?ve!Analysis!
A Number!of!compe?tors!!
A Brief!Descrip?on!of!Compe?tors!
A Compe??on!Strategies!
A Obstacles!Faced!by!New!Firms!
A Nature!of!the!Market!!
A Compara?ve!Analysis!Summary!Table
6!
13
7 Recommenda?on 23
8 Conclusion 26
9 Bibliography 27
10 Interview!Ques?ons!&!Answers 28
11 Appendix 38
12 Minutes!of!Mee?ng 44
13 References 50
FNBE!August!2015!ECONS Integrated!Project!Report 2
4. Summary&&
This! assignment! focuses! on! the! compara?ve! analysis! between! two! similar! businesses! at! two!
different!geographical!loca?ons.!The!chosen!business!is!the!Chinese!herbal!medicine!which!is!a!
part! of! the! integrated! system! of! primary! health! care,! known! as! Tradi?onal! Chinese! Medicine!
(TCM).! The! Chinese! herbal! medicine! has! an! uninterrupted! history! of! development! da?ng! back!
thousands!of!years!in!China!and!other!parts!of!East!Asia.!Cze!Kong!Medical!Hall!&!Sundry!which!is!
located!at!Cheras,!Kuala!Lumpur!and!Chop!Yan!Tuck!Medical!Hall!which!is!located!at!Seremban!
Town,!Negeri!Sembilan!has!been!chosen!as!the!analysis!targets.!This!is!to!compare!the!business!of!!
one! medical! hall! with! sundry! business! and! one! with! no! sundry! business.! Interviews! have! been!
conducted! in! both! medical! halls! as! to! gather! further! informa?on! from! their! business.! The!
informa?on! gathered! has! been! analysed! and! further! categorised! into! respec?ve! topics! with!
reliable! sources! in! reference.! As! a! conclusion,! Chop! Yan! Tuck! Medical! Hall! is! commercially!
successful!than!Cze!Kong!Medical!Hall!&!Sundry!because!Chop!Yan!Tuck!Medical!Hall!has!a!greater!
annual!revenue,!wider!range!and!amount!of!customers!and!they!sell!beaer!quality!Chinese!herbs,!
and! they! even! provide! tradi?onal! pulse! diagnosis.! Besides! these,! careful! analysis! on! the!
recommenda?ons!in!order!to!improve!their!compe??ve!skills!have!been!included!in!this!report!to!
show!difference!between!the!two!medical!halls.!!
FNBE!August!2015!ECONS Integrated!Project!Report 3
5. History&of&TradiMonal&Chinese&Medicine&(TCM)&
Tradi?onal!Chinese!Medicine!(TCM)!has!a!long!and!rich!history,!and!it!is!the!third!oldest!form!
of!medicine.!TCM!dated!back!to!the!period!of!The!Huang!Di.!The$NeiJing$(The$Yellow$Emperor’s$
Canon$of$Internal$Medicine)$that!is!the!greatest!and!the!oldest!Chinese!medical!classic!milestone,!
which!has!established!the!theore?cal!founda?on!for!the!medical!system!and!philosophical!theory.!!
In!the!19th!century,!with!western!medicine!entering!and!developing!rapidly!in!China,!the!
development!of!TCM!was!severely!affected,!which!was!between!the!devil!and!the!deep!sea.!Acer!
the!Opium!Wars!in!China,!which!made!Chinese!to!have!falsity!belief!that!TCM!was!unscien?fic,!
feudal.!Hence,!TCM!had!always!been!in!the!posi?on!being!inves?gated,!examined,!queried!and!
reformed,!and!developed!on!thin!ice.!Acer!the!forma?on!of!the!People’s!Republic!of!China,!the!
government!affirmed!the!policy!to!protect!TCM.!The!stabilisa?on!of!TCM!allowed!it!to!be!spread!to!
places!outside!China.!This!includes!places!such!as!the!western!countries,!Southeast!Asia,!Japan,!
Korea,!India!and!etcetera.!!
TCM!in!Malaysia!was!brought!in!by!Chinese!immigrants!from!China!in!the!olden!days.!They!
came!to!Malaya!to!find!a!living.!Hence,!TCM!started!to!develop!in!Malaya.!It!was!quickly!accepted!
by!the!locals!as!they!were!effec?ve!in!curing!diseases!and!helped!a!lot!in!maintaining!the!people’s!
health.!Acer!some!?me!then,!TCM!was!widely!used!in!Malaya.!Over!hundreds!of!Chinese!medical!
halls!were!established!all!over!Malaya!including!Kuala!Lumpur,!Ipoh,!Penang!and!etcetera.!Some!of!
them!are!s?ll!running!the!business!un?l!today!as!the!pioneers!passed!down!the!knowledge!and!
business!to!the!younger!genera?ons.!
!
!
FNBE!August!2015!ECONS Integrated!Project!Report 4
Huang$Di$Nei$Jing Chinese$Medical$Hall$at$Malaya Pioneers$of$TCM$Malaysia
8. Cze! Kong! Medical! Hall! and! Sundry! sells! around! 500! tradi?onal! herbs! along! with! ready!
packaged!herbal!soup!and!sundry!such!as!oil,!milo!and!washing!powder.!According!to!Mr.!Liew,!the!
majority!of!the!customers!are!Chinese!as!the!loca?on!of!the!business!is!in!a!Chinese!residen?al!
area.!The!demand!of!the!ready!packaged!herbal!soup!is!the!highest!as!it!is!good!for!health!and!
affordable! for! the! customers.! There! are! around! 50! customers! everyday! and! most! of! them! are!
senior!ci?zens!and!adults.!Most!of!the!customers!are!loyal!to!Cze!Kong!Medical!Hall!and!Sundry!
and!has!been!buying!herbs!and!sundry!from!the!shop!for!a!long!period!of!?me!as!Mr.!Liew! is!
honest!to!the!customers.!The!peak!hour!of!the!business!is!in!the!morning!as!it!is!just!located!next!
to!the!morning!market.!They!use!modern!equipment!such!as!electronic!balance!and!calculator!to!
replace!the!tradi?onal!ones!to!be!more!efficient.!!
FNBE!August!2015!ECONS Integrated!Project!Report 7
9. B)&Chop&Yan&Tuck&Medical&Hall,&Seremban&
Chop! Yan! Tuck! Medical! Hall! is! located! at! Jalan! Munawir,! Bandar! Seremban,! 70000,!
Seremban,! Negeri! Sembilan.! It! is! a! tradi?onal! Chinese! medical! hall! that! provides! consulta?on,!
treatment!and!prescrip?on!to!their!customers.!They!also!sell!tradi?onal!Chinese!herbs!and!also!
?dbits! such! as! groundnuts! and! sweets.! The! business! was! founded! by! his! grandparents! in! 1944!
during!the!Japan!occupa?on!of!Malaya.!It!started!off!with!a!simple!mo?ve!when!his!grandparents!
worked!in!Eu!Yan!Sang!and!decided!to!open!a!medical!hall!and!sundry!shop!to!earn!a!living.!In!
1995,!they!decided!to!focus!solely!on!selling!tradi?onal!Chinese!herbs!as!it!can!gain!more!profit.!
Moreover,!it!would!be!less!troublesome!not!needing!to!handle!the!sundry!items.!There!are!11!
employees!in!the!shop!including!Mr.!Chong.!
FNBE!August!2015!ECONS Integrated!Project!Report 8
Chop Yan
Tuck
Medical
13. Differences&&
Cze&Kong&Medical&Hall&and&
Sundry
Differences Chop&Yan&Tuck&Medical&Hall
Liew!Cze!Kong!
He!worked!in!the!herbal!field!
as!an!appren?ce!when!he!was!
young.!Since!then,!he!built!a!
strong!bond!with!the!Chinese!
Herbal!and!decided!to!start!his!
own!business!acer!about!10!
years.!He!started!his!business!
in!Ampang!at!the!year!of!1990.!
However,!he!moved!and!
started!his!herbal!shop!in!year!
2000.!He!relocated!the!
business!because!he!found!
that!Taman!Midah!is!lack!of!
herbal!stalls!and!the!
popula?on!of!residents!at!this!
area!is!high.!!
Founder&and&History
Chong!Yan!Tuck!
Mr.Chong!Ngai!Loong’s!
grandfather!worked!in!Eu!Yan!
Sang!before.!He!learnt!a!lot!of!
knowledge!about!Chinese!
herbal!shop.!As!such,!he!
decided!to!start!his!own!
Chinese!herbs!business!in!
order!to!support!his!household!
expenses.!He!also!wanted!to!
introduce!high!quality!herbs!to!
the!people!in!Seremban.!
Taman!Midah,!Kuala!Lumpur LocaMon Bandar!Seremban,!Seremban
3 Employees 11
Monday!A!Saturday!,!8:00am!A!
6:00pm!
Sunday!,!8:00am!A!1:00pm
Working&Hours Monday!A!Saturday,!8:30am!to!
8:00pm!
Sunday,!10:00am!to!2:00pm
around!50 Number&of&customers more!than!100
Slightly!modern!shelves!with!
air!condi?oning!and!CCTV!
installed!
Shop&Layout&and&Atmosphere Tradi?onal!Chinese!herbal!
shelves!with!lots!of!drawers,!
approx.!RM!1.5!mil Annual&Revenue& approx.!RM2!mil
N/A Services& Tradi?onal!Pulse!Diagnosis!
Chinese!Herbs!and!Sundry Main&Products Chinese!Herbs!
Calculator Means&of&CalculaMon Abacus!and!Calculator
Electronic!Balance Means&of&Weighing& Chinese!Weighing!Scale
FNBE!August!2015!ECONS Integrated!Project!Report 12
16. Chop&Yan&Tuck&Medical&Hall’s&Top&3&CompeMtors&
1.&Eu&Yan&Sang&&
According! to! Mr.! Chong,! the! retailer! of! Chop! Yan!
Tuck,! Eu! Yan! Sang! is! the! only! compe?tor! as! the!
products! sold! is! almost! the! same.! As! men?oned!
earlier,! Eu! Yan! Sang! has! over! 130! years! of! history,!
selling!a!variety!of!products!under!their!own!brand.!
The!herbs!sold!are!quality!guaranteed.!Most!of!the!
customers!that!buy!Eu!Yan!Sang!products!are!loyal!
customers!as!they!are!rewarded!by!the!membership!
promo?on!that!Eu!Yan!Sang!holds!annually.!
!
!
2.&Cheoon&Lin&Medical&Hall&
Apart!from!that,!Cheoon!Lin!Medical!Hall!is!also!an!
old!shop!around!the!area.!The!herbs!sold!are!similar!
to!Chop!Yan!Tuck!Medical!Hall!but!they!sell!liquor!as!
well!to!aaract!customers.!The!interior!design!of!the!
medical!hall!is!modern!compared!to!Chop!Yan!Tuck!
Medical!Hall!as!they!use!modern!drawers.!Their!selfA
packaged! ingredients! of! herbal! soup! provide!
convenience!to!the!customers.!!
!
FNBE!August!2015!ECONS Integrated!Project!Report 15
Exterior!of!Eu!Yan!Sang.
Exterior!of!Cheoon!Lin!Medical!Hall.
17. 3.&Lifecare&Chinese&Medical&Hall&&
Lifecare!Chinese!Medical!Hall!is!another!compe?tor!
of! Chop! Yan! Tuck! Medical! Hall! as! they! provide!
medical!diagnosis!and!treatment!to!their!customers.!
Apart! from! that,! acupuncture,! Chinese! herbal!
medicine,!remedial!massage,!exercise!and!breathing!
therapy! (such! as! qigong),! and! diet! and! lifestyle!
advice! are! also! available! there.! Most! of! the!
customers! visit! the! medical! hall! for! acupuncture!
weekly!to!improve!their!health!condi?on.!
!
FNBE!August!2015!ECONS Integrated!Project!Report 16
Exterior!of!Lifecare!Chinese!Medical!
Centre.
18. III&]&CompeMMon&Strategies
LocaMon Cheras&&
Cze&Kong&Medical&Hall&and&
Sundry
Seremban&
Chop&Yan&Tuck&Medical&Hall
Number&of&
CompeMtors&
3!
a. Kim!Loy!Medical!Hall!and!
Sundry!
b. Ban!Soon!Heng!Medical!Hall!
and!Sundry!
c. Eu!Yan!Sang
3!
a. Eu!Yan!Sang!
b. Cheoon!Lin!Medical!Hall!
c. Lifecare!Chinese!Medical!Hall
Pricing The!products!are!priced!
reasonably!according!to!the!
market!price.!Mr.!Liew!does!not!
increase!the!price!to!get!profit!
from!it!but!he!keeps!other!
expenses!such!as!u?lity!
expenses!low!to!increase!his!
profit.!
The!price!of!the!Chinese!tradi?onal!
herbs!are!slightly!higher!than!other!
compe?tors!as!the!quality!of!herbs!
are!beaer.!
Services Cze!Kong!is!very!friendly!to!his!
customers!and!he!provides!great!
services!for!them.!This!aaracts!
many!customers!by!word!of!
mouth.!Apart!from!that,!he!gives!
discounts!to!his!regular!
customers!as!a!promo?on.!
They!have!an!experienced!sensei!to!
provide!tradi?onal!pulse!diagnosis!for!
their!customers.!Acer!the!diagnosis,!
they!would!give!prescrip?on!to!their!
customer!if!needed.!This!has!
established!a!close!rela?onship!with!
their!customers!because!of!their!
posi?ve!aotude!towards!their!
customers.!
FNBE!August!2015!ECONS Integrated!Project!Report 17
20. nowadays!do!not!have!that!much!experience!and!knowledge!to!run!the!firm!effec?vely.!According!
to!the!term!‘economies!of!scale’!from!the!book!Principle!of!Economics,!the!firms!that!have!the!
abili?es! to! produce! goods! at! a! lower! average! cost! over! the! long! run! is! definitely! the! one! with!
advantage.!Hence,!new!firms!would!require!some!?me!to!be!able!to!compete!with!those!strong!
compe?tors!out!there.!In!addi?on,!new!firms!would!have!to!install!air!condi?oner!in!their!shop!
due!to!hygienic!reasons.!Furthermore,!they!have!to!choose!a!strategic!loca?on!so!that!their!shop!
can!be!easily!accessed!and!no?ced.!Mr.!Chong!also!added!the!fact!that!luck!is!also!needed!to!help!
assist!a!beginner!in!Chinese!herbal!medicine!field.!
V&]&Nature&of&the&Market&
(a)&Cze&Kong&Medical&Hall&&&Sundry&
The!nature!of!the!market!for!Cze!Kong!Medical!Hall!&!Sundry!is!monopolis?c!compe??on.!There!
are!a!number!of!businesses!selling!herbs!within!the!area.!!
This!business!consists!of!top!three!compe?tors!whereby!two!are!selling!almost!iden?cal!product!
that!is!both!herbs!and!sundry!items!while!the!other!one!is!solely!selling!herbs.!Since!there!are!
several!of!these!firms!in!the!market,!the!barriers!to!entry!for!new!firms!are!rela?vely!weak.!Due!to!
having!mul?ple!firms!selling!almost!iden?cal!products,!the!compe??on!level!is!quite!high.!As!such,!
the!firms!cannot!charge!at!a!high!price!or!else!the!customers!will!purchase!from!its!rivals.!Being!in!
a!monopolis?c!compe??on,!Cze!Kong!Medical!Hall!&!Sundry!has!weak!pricing!power,!that!is!to!say!
that!this!firm!is!a!price!taker!whereby!the!price!is!affected!by!the!supply!and!demand.!The!firm!
cannot!influence!their!prices!of!the!products!because!there!are!s?ll!compe?tors!out!there!that!
have!influence!on!the!pricing!as!well.!As!such,!if!one!firm!were!to!increase!their!price,!making!it!
higher!than!the!other!firms,!most!customers!would!opt!for!other!Chinese!herbal!medicine!shop.!To!
increase!the!pricing!power!and!protect!their!profit!from!their!compe?tors,!Cze!Kong!Medical!Hall!&!
Sundry!strive!to!differen?ate!their!products!by!providing!good!customer!service.!This!resulted!in!
their!customers!developing!aaachment!for!their!products.!This!leads!to!their!customers!having!a!
stronger!aaachment!and!would!be!harder!for!compe?tors!to!steal!their!customers!away.!!
FNBE!August!2015!ECONS Integrated!Project!Report 19
23. 4.&Pricing&Power Price!taker!
" Weak!pricing!power!
" The!shop!does!not!
fix!high!prices!
unreasonably!so!that!
their!customers!
would!not!switch!to!
the!other!medical!
halls.!
" The!compe??on!
among!other!firms!is!
quite!intense.!
" Price!is!fixed!
according!to!the!
market!price!that!is!
determined!by!!the!
supplies!and!
demands.!
Price!maker!
" Strong!pricing!power!
" Only!a!few!medical!halls!were!
established!in!the!area!hence!a!
minimal!compe??on!is!ensured.!
" Has!the!right!to!set!higher!price!
and!makes!enormous!profit!on!
their!rare!medical!herbs!sold.!
5.&Other&
CharacterisMcs
Subs?tute!goods!!
" Modern!medicine!
Subs?tute!goods!!
A!Modern!medicine
6.&Verdict Monopolis?c!Compe??on! Oligopoly!Compe??on!!
FNBE!August!2015!ECONS Integrated!Project!Report 22
25. 3.&More&Cabinets&
More! cabinets! should! be! placed! in! the!
shop! so! that! the! products! will! not! be!
arranged! on! the! floor,! that! is! below! the!
customer’s!eye!level.!Placing!the!products!
o n! t h e! g ro u n d! wo u l d! b e! m o re!
inconvenient!for!the!customers.!
!
B) Chop&Yan&Tuck&Medical&Hall&
Overall,!Chop!Yan!Tuck!Medical!Hall!is!considered!as!a!more!tradi?onal!shop.!Its!loca?on!is!
strategic!as!it!is!located!at!the!heart!of!the!city!town!of!Seremban.!As!the!shop!only!sells!herbs,!
there!is!a!wide!variety!of!herbs!sold!in!the!shop.!Hence,!Chop!Yan!Tuck!Medical!Hall!can!be!said!to!
have!the!largest!amount!of!Chinese!herbs!sold!among!all!other!medical!halls!in!that!area.!Apart!
from!that,!there!are!also!some!recommenda?ons!that!can!be!implemented!to!improve!the!
business.!
1.&&Use&of&Modern&Technology&
Digital!balance!and!calculator!can!be!used!instead!of!tradi?onal!weighing!scale!and!abacus!in!the!
shop!so!that!the!measurement!and!calcula?on!process!can!be!done!in!a!shorter!period!of!?me!and!
it!would!be!more!efficient.!
FNBE!August!2015!ECONS Integrated!Project!Report 24
Some!of!the!products!are!placed!on!the!floor.
The! owner! of! the! medical! hall! is! using! the!
abacus.
The! workers! are! using! tradi?onal! weighing!
scale.
26. 2.&Policy&of&Uniform&and&Proper&Hygiene&A`re&
Policy! of! uniform! and! proper! hygiene! aore!
should!be!implemented!such!as!wearing!mask,!
bouffant! cap! and! gloves.! With! these,! the!
hygienic! level! will! certainly! be! improved! in! the!
shop.!
!
!
3.&Provide&a&Proper&Room&for&ConsultaMon&
A!proper!room!should!be!provided!for!the!sensei!
when! aaending! his! pa?ents! to! increase! the!
privacy!level!of!the!pa?ents.!
&
FNBE!August!2015!ECONS Integrated!Project!Report 25
Improper!wear!and!handling!of!the!herbs.
The!consulta?on!is!taken!place!right!in!front!
of!the!shop.!
27. Conclusion&
According!to!the!compara?ve!analysis,!Chop!Yan!Tuck!Medical!Hall!in!Seremban!is!more!
commercially! successful! as! compared! to! Cze! Kong! Medical! Hall! and! Sundry! in! the! Cheras,!
Klang! Valley.! Cri?cal! analysis,! jus?fica?ons,! research! and! the! applica?on! of! economic!
principles!have!supported!this!statement.!!
First!of!all,!there!are!more!types!of!herbs!sold!in!Chop!Yan!Tuck!Medical!Hall!than!in!Cze!
Kong! Medical! Hall! and! Sundry.! The! fact! is! that! some! of! the! herbs! sold! in! Chop! Yan! Tuck!
Medical! Hall! are! more! expensive! compared! to! Cze! Kong! Medical! Hall! and! Sundry! because!
those!herbs!are!more!rare.!Even!though!the!business,!Chop!Yan!Tuck!Medical!Hall!is!more!on!
the!tradi?onal!side!in!terms!of!its!outlook!of!its!shop!and!the!method!of!handling!the!herbs,!
this!business!is!more!successful!than!the!more!modern!Cze!Kong!Medical!Hall!and!Sundry.!The!
business’! annual! revenue! figure! of! Chop! Yan! Tuck! Medical! Hall! is! stated! to! be! higher! in!
comparison!to!Cze!Kong!Medical!Hall!and!Sundry.!!
The!strategic!loca?on!of!Chop!Yan!Tuck!Medical!Hall!had!result!in!the!increase!of!the!
amount!of!customers.!Chop!Yan!Tuck!Medical!Hall!is!more!assessable!than!Cze!Kong!Medical!
Hall!as!it!is!located!at!the!city!town!of!Seremban.!On!the!other!hand,!Cze!Kong!Medical!Hall!
that!is!located!at!the!corner!of!the!street!tends!cause!inconvenience!to!customers.!Hence,!the!
approximate!number!of!customers!who!visit!Chop!Yan!Tuck!Medical!Hall!daily!is!way!more!
than!the!customers!who!go!to!Cze!Kong!Medical!Hall!and!Sundry.!There!are!even!are!tourists!
who!visit!Chop!Yan!Tuck!Medical!Hall!to!purchase!Chinese!herbs.!For!Cze!Kong!Medical!Hall!
and! Sundry,! their! customers! are! mostly! residents! staying! nearby.! As! straighporward! as! it!
looks,!more!customers!would!generally!result!in!an!increase!in!revenue.!Hence,!the!amount!of!
profit!generated!for!Chop!Yan!Tuck!Medical!Hall!would!be!higher.!A!high!profit!is!a!good!sign!
for!the!business!economically!and!has!proven!to!be!doing!well.!
Another!reason!why!Chop!Yan!Tuck!Medical!Hall!is!more!commercially!successful!than!
Cze! Kong! Medical! Hall! and! Sundry! is! because! Seremban! has! a! limited! number! of! Chinese!
herbal!firms!around.!Fewer!Chinese!herbal!firms!in!Seremban!led!to!the!firms!to!have!more!
customers.! On! the! other! hand,! Klang! Valley! has! more! Chinese! herbal! firms! available! so!
customers!would!have!a!wider!variety!of!firms!to!choose!from.!
FNBE!August!2015!ECONS Integrated!Project!Report 26
31. iv) How& do& the& businesses& compete& with& their& compeMtors?& What& strategies& were/are&
employed&(e.g.&pricing,&adverMsing,&product&variety,&etc.)&and&how&successful&are&they?&&
They!always!have!promo?ons!on!certain!types!of!herbs.!They!will!increase!or!decrease!the!
price!of!their!products!according!to!the!market!price!and!also!set!at!lower!price!than!the!
other!shops!located!around!them.!They!will!check!on!their!products!regularly!and!later!will!
package!it.!Also,!they!will!check!the!freshness!of!the!herbs!in!order!to!maintain!the!quality!
of!their!products.!Moreover,!they!will!serve!the!customers!with!a!friendly!aotude!and!
always!remembers!to!put!their!customers!as!their!first!priority!so!that!their!customer!will!
feel!welcomed!whenever!they!go!to!the!shop.!These!strategies!are!indeed!successful!as!
they!are!able!to!maintain!their!good!image!and!ensure!that!the!quality!of!their!product!is!
good.!
v) What&are&the&obstacles&faced&by&new&businesses&who&wish&to&enter&their&markets&today?&
Are&they&easy&or&difficult&to&overcome?&Why?&&
For! them! who! wish! to! enter! their! markets,! they! should! be! physically! and! mentally!
prepared,!as!they!will!have!to!work!for!long!hours.!This!is!because!as!the!owner!of!the!
shop!they!have!to!be!responsible!and!they!must!always!be!in!their!shop!and!monitor!their!
employees.!Besides,!they!will!have!to!learn!and!memorise!the!names!of!herbs!and!the!
ways!to!use!some!tradi?onal!apparatus.!Some!of!the!methods!include!packing!the!herbs!
using!paper!and!the!way!to!keep!and!clean!the!herbs.!They!should!also!build!up!a!new!
social! circle! where! it! consists! of! the! suppliers! of! the! herbs! and! sundry! as! well! as! the!
professional! who! can! determine! the! quality! of! the! herbs.! Moreover,! they! should! also!
observe!the!market!price!and!the!price!set!by!their!compe?tor.!Hence,!this!business!is!
more!suitable!for!those!who!are!more!experienced!in!the!herbal!market!as!it!can!be!a!very!
difficult!and!dull!task!if!one!is!not!interested.!
vi) What&is&the&nature&of&their&markets&(e.g.&perfectly&compeMMve,&oligopoly,&monopolisMc&
compeMMve)&and&your&jusMficaMons.&
The!nature!of!the!market!for!Cze!Kong!Medical!Hall!&!Sundry!is!monopolis?c!compe??on.!
There!are!a!number!of!businesses!selling!herbs!within!the!area.!Since!there!are!several!of!
these!firms!in!the!market,!the!barriers!to!entry!for!new!firms!are!rela?vely!weak.!Due!to!
having!mul?ple!firms!selling!almost!iden?cal!products,!the!compe??on!level!is!quite!high.!
Cze!Kong!Medical!Hall!&!Sundry!has!weak!pricing!power,!that!is!to!say!that!this!firm!is!a!
price!taker!whereby!the!price!is!affected!by!the!supply!and!demand.!!
FNBE!August!2015!ECONS Integrated!Project!Report 30
32. APPENDIX&2:&Suggested&List&of&Interview&QuesMons&&&
1) Who&are&your&customers?&&
The!residents!in!the!nearby!neighbourhood!!
2) What&is&the&business’&annual&revenue&figure?&&
About!1.5million!
3) Is& the& business& constantly& facing& strong& compeMMon& from& other& compeMtors?& What&
strategies&have&they&used&to&compete&with&you?&&
Yes.!They!had!hung!lot!of!banners!outside!their!shop!as!a!form!of!adver?sement!to!aaract!
their! customer’s! aaen?on.! They! also! decrease! the! price! of! their! products! and! provide!
more!variety!of!products!in!their!shop.!Besides,!some!of!them!installed!airAcondi?oning!
service!into!the!shop!to!create!a!more!comfortable!ambience.!
4) How& much& capital& is& required& to& start& this& business?& What,& if& any,& specialized& field& of&
knowledge&do&you&need&to&run&this&business?&&
About!60A80!thousands!Ringgit!is!needed!nowadays!to!start!this!business.!A!lot!of!specific!
knowledge!is!required!to!run!this!business.!First!of!all,!one!must!memorise!the!names!of!
the!herbs!and!must!be!familiar!with!the!tradi?onal!way!to!prepare!as!well!as!measure!and!
pack!the!herbs.!Besides,!one!must!also!be!updated!to!the!latest!market!price!and!must!be!
able!to!differen?ate!between!the!good!and!bad!quality!of!the!herbs.!
5) Generally,&do&you&feel&it&is&easy&or&hard&to&enter&this&market?&Why?&&
I!think!it!will!be!easier!if!you!are!very!interested!in!this!market.!This!is!because!you!need!to!
work!for!long!hours!and!you!have!to!manipulate!some!specific!technique!in!this!market.!
6) How&do&you&compete&with&your&compeMtors&i.e.&what&strategies&do&you&employ&to&divert&
customers&away&from&your&compeMtors?&&
I!work!with!a!very!polite,!honest!and!sincere!aotude.!I!always!try!my!best!to!makes!my!
customers!feel!comfortable!when!they!walk!into!my!shop.!I!set!the!most!reasonable!price!
for!the!products!and!always!maintain!the!quality!of!my!products.!I!do!not!do!any!form!of!
adver?sing!besides!through!words!of!mouth!from!my!customers.!By!having!this!kind!of!
aotude!towards!my!business,!my!customer!can!feel!that!our!shop!is!trustworthy.!
FNBE!August!2015!ECONS Integrated!Project!Report 31
34. Brief&DescripMon&of&the&Businesses&]&Seremban&
i) Their&names&&
Chop!Yan!Tuck!Medical!Hall!
ii) Current&locaMons&
9,Jalan!Datuk!Abdul!Rahman.!
iii) Number&of&branches&and&employees&
No!branches!and!11!employees.!
iv) Main&products&or&services&provided&
Up! to! 1000! types! of! Chinese! herbs! and! consulta?on! from! an! experienced! sensei! is!
provided.!
v) EsMmated¤t&number&of&customers.&&
100!pax!per!day!
vi) When&were&the&businesses&started?&&
In!the!year!1944!
vii) Who&are&the&founders?&&
Mr.Chong!Ngai!Loong’s!(retailer!of!the!shop)!grandfather!
viii) What&was&their&moMve(s)&for&starMng&the&business&
Mr.Chong!Ngai!Loong’s!grandfather!worked!in!Eu!Yan!Sang!before.!He!learnt!a!lot!of!
knowledge!about!Chinese!herbal!shop.!As!such,!he!decided!to!start!his!own!Chinese!
herbs!business!in!order!to!support!the!expenses!of!his!growing!son.!He!also!wanted!to!
introduce!the!high!quality!herbs!to!the!people!in!Seremban.!
FNBE!August!2015!ECONS Integrated!Project!Report 33
35. ix) Their&recent&development&&
(i.e.! what! has! the! business! accomplished! or! what! changes! have! occurred! in! the!
business!over!the!past!3!A!5!years).!!
Mr.Chong! Ngai! Loong’s! father! had! just! passed! the! business! to! his! brother! Mr.Chong!
Ngai! Soong.! The! new! owner! is! more! outgoing! and! young;! he! had! request! a! license!
pharmacist! to! help! out! in! his! shop.! Hence,! the! shop! became! more! professional! and!
eventually!the!business!improved.!Moreover,!computer!system!is!also!implemented!in!
the!shop!ever!since!GST!started!in!1!April.!!!
ComparaMve&Analysis&of&the&Businesses’&CompeMMve&Traits&&
i) Number&of&compeMtors&in&their&respecMve&geographical&markets&
4!
ii) Besides&business&compeMtors,&what&are&the&other&challenges&faced&
A!lot!of!new!rules!from!the!government!were!implemented.!The!government!wanted!all!
of!the!employees!in!herbal!shop!to!undergo!a!specific!course!so!they!are!always!up!to!
date.!Moreover,!herbal!shops!are!also!required!to!sell!their!items!in!a!more!presentable!
package!to!replace!the!tradi?onal!packaging.!Besides,!herbal!shops!are!also!required!to!
improve! their! hygiene! by! ensuring! that! the! employees! in! the! shop! wear! gloves! and!
bouffant!cap!at!all!?mes!and!the!shop!should!be!airAcondi?oned!for!hygienic!purposes.!
iii) Brief&bios&of&each&business’&top&3&compeMtors&&
(E.g.!who!are!they?!What!are!their!products?!etc.)!
1. Eu!Yan!Sang!–!Sells!mainly!herbs!of!their!own!produc?on!
2. Cheoon!Lin!A!Sells!herbs!and!liquor!
3. Lifecare! Chinese! Medical! Centre! –! Provides! consulta?on,! prescrip?on! and! sells!
herbs.!
FNBE!August!2015!ECONS Integrated!Project!Report 34
36. iv) How&do&the&businesses&compete&with&their&compeMtors?&What&strategies&were/are&
employed& (e.g.& pricing,& adverMsing,& product& variety,& etc.)& and& how& successful& are&
they?&&
So!far,!the!business!is!geong!more!successful!compared!to!the!past.!This!is!because!
they! are! selling! beaer! grade! of! herbs! that! shows! a! huge! difference! as! compared! to!
herbs!of!second!grade.!Moreover,!they!also!provide!the!customers!with!good!service!
and!make!the!customers!feel!welcomed.!Lastly,!their!strategies!in!adver?sing!do!not!
involve! adver?sement! but! only! from! the! recommenda?on! between! customers! that!
they!believe!is!more!useful!than!selfAadver?sing.!!
v) What& are& the& obstacles& faced& by& new& businesses& who& wish& to& enter& their& markets&
today?&Are&they&easy&or&difficult&to&overcome?&Why?&&
The!level!of!difficulty!actually!depends!on!the!individual!who!is!going!to!start!a!new!
business!in!this!market.!Firstly,!they!have!to!have!keen!interest!in!Chinese!herbs!as!they!
have!to!spend!a!lot!of!?me!learning!and!memorising!the!names!and!the!characteris?cs!
of!the!herbs.!Next,!they!have!to!be!able!to!tolerate!with!long!working!hours!to!look!acer!
the! shop! and! the! herbs.! It! is! also! tough! to! enter! due! to! the! process! of! obtaining! a!
license.!Every!type!of!Chinese!herbs!requires!its!own!license.!To!start!up!a!new!Chinese!
herbal!medicine,!a!huge!amount!of!capital!is!required.!Moreover,!they!have!to!choose!a!
strategic!loca?on!so!that!their!shop!can!be!easily!accessed!and!no?ced.!Other!than!that,!
family! support! and! luck! are! also! some! criteria! that! is! essen?al! in! order! to! start! a!
successful!business.!!
vi) What&is&the&nature&of&their&markets&
(e.g.& perfectly& compeMMve,& oligopoly,& monopolisMc& compeMMve)& and& your&
jusMficaMons.&&
The!nature!of!the!market!for!Chop!Yan!Tuck!Medical!Hall!is!oligopoly!compe??on.!This!
business!is!opera?ng!in!a!market!structure!dominated!by!very!few!Chinese!herbs!seller!
in! the! market.! All! of! these! businesses! are! selling! products! that! are! similar! but! not!
iden?cal.!In!this!oligopoly!market,!there!are!strong!barriers!to!entry!for!new!firms.!Since!
there!only!a!small!number!of!firms!in!the!market!and!there!is!minimal!compe??on,!
Chop!Yan!Tuck!Medical!Hall!has!rela?vely!strong!pricing!power.!
FNBE!August!2015!ECONS Integrated!Project!Report 35
37. APPENDIX&2:&Suggested&List&of&Interview&QuesMons&
1) What&are&your&main&products?&&
Wide!range!of!herbs!of!high!quality!!
2) Who&are&your&customers?&
Most!of!our!customers!are!from!genera?on!to!genera?on!star?ng!from!year!1944!!
3) What&is&the&business’&annual&revenue&figure?&&
RM2!million!and!above!
4) Can&you&provide&us&a&brief&history&of&your&business&and&its&most&recent&developments?&
This!business!is!actually!a!family!business.!My!grandfather!was!the!one!who!started!this!
business!as!he!worked!in!Eu!Yan!Seng!before!and!he!acquired!knowledge!about!Chinese!
herbs!during!his!working!period.!Acer!that,!he!decided!to!start!his!own!business,!as!he!
wanted!to!support!his!own!family!as!well!as!him!having!the!eagerness!to!introduce!high!
quality!herbs!to!the!people!in!Seremban.!Upon!his!interest!and!strong!bond!with!Chinese!
herbs,!he!also!wanted!to!contribute!to!the!society!by!providing!the!best!consulta?on!for!
Chinese!herbs!in!Seremban.!Acer!my!grandfather!has!passed!away,!my!brother,!Chong!Ngai!
Soong! took! over! the! business! and! developed! the! shop! into! a! more! technological! and!
implement!more!strategies!in!order!to!complete!with!the!Chinese!herbal!shops!around!us.!
The! most! recent! developments! in! our! shop! include! the! implementa?on! of! computer!
system!and!CCTV!security!system.!
5) Is& the& business& constantly& facing& strong& compeMMon& from& other& compeMtors?& What&
strategies&have&they&used&to&compete&with&you?&&
The!compe??on!in!this!area!is!actually!quite!compe??ve!as!there!are!more!than!4!other!
herbal! shops! around! our! shop! within! 200m.! Some! of! them! adver?se! by! hanging! large!
banners!to!aaract!customers’!aaen?on!while!some!of!them!will!distribute!brochures!and!
vouchers.!There!are!also!shops!that!are!having!sales!from!?me!to!?me!by!giving!discount!to!
the!customers.!Some!will!choose!to!sell!lower!quality!herbs!so!that!they!can!lower!down!
the!price!and!compete!with!the!other!herbal!shops.!
FNBE!August!2015!ECONS Integrated!Project!Report 36
38. 6) How& much& capital& is& required& to& start& this& business?& What,& if& any,& specialized& field& of&
knowledge&do&you&need&to&run&this&business?&&
Half!a!million.!Knowledge!in!Chinese!herbs.!
7) How&oken&do&you&release&a&new&product?&&
(This&assumes&the&business&sells&differenMated&products)&
We!already!have!more!than!1000!types!of!different!herbs!so!the!new!products!we!released!
are!mostly!readyAmade!product!such!as!Panadol!and!sour!plum.!
8) Are&your&pricing&decisions&strongly&affected&by&your&compeMtors?&
Our!pricing!decisions!are!seldom!affected!by!our!compe?tors!but!mostly!affected!by!the!
market!price!and!the!supply!and!demand!in!the!market.!The!herbs!that!can!be!found!easily!
in!the!market!for!instance,!Angelica!Sinensis!!(Dang!Gui)!is!sold!in!a!lower!price.!Oppositely,!
the!herbs!that!are!considered!rare!in!the!market!will!be!sold!in!a!rela?vely!higher!price.!
FNBE!August!2015!ECONS Integrated!Project!Report 37
39. Appendix&
This! appendix! is! a! compila?on! of! interview! documents! and! photos! of! both! Chinese! herbal!
medicine!halls.!It!also!includes!informa?on!of!their!respec?ve!compe?tors!that!were!recorded!in!
the!process!of!inves?ga?ng,!analyzing!and!comparing!both!of!the!businesses.!
(a)Cze!Kong!Medical!Hall!&!Sundry,!Cheras,!Klang!Valley.!
!
FNBE!August!2015!ECONS Integrated!Project!Report 38
Interior!view!of!the!shop.
Front!view!of!the!shop.
45. Minutes&of&MeeMng&1&
Amendees:&
Minutes:&
Date: October!21,!2015
Time: 9.00pmA10.30pm
Venue: Online!Skype!Discussion
Names&of&Group&Members Tutorial&Group Role
Yeap!Phay!Shian Friday!8.00am Leader
Lee!Yet!Yee Monday!12.00pm N/A
Madeline!Liew!Zhi!Qi Wednesday!2.00pm N/A
Heng!Sy!Hua Monday!12.00pm N/A
Tam!Zhao!Wei! Wednesday!2.00pm N/A
No. AcMvity AcMon&Taken&By Details
1 Introduction Yeap Phay Shian Briefing of the assignment tasks and
submission requirements.
2 Research All Members Research on interesting business to focus on.
3 Discussion All Members Discussed on what business to focus on. All
members gave opinions and suggestions.
4 Voting Session All Members A few options been given by group members.
All members get to vote the most suitable
choice of all.
5 Conclusion Yeap Phay Shian Concluded all discussion and decision made.
Confirm next meeting session.
6 End All Members Meeting adjourned.
FNBE!August!2015!ECONS Integrated!Project!Report 44
46. Minutes&of&MeeMng&2&
Amendees:&
Minutes:&
Date: October!25,!2015
Time: 3.00pmA4.00pm
Venue: Event!Hall!1,!Taylor’s!University!Library
Names&of&Group&Members Tutorial&Group Role
Yeap!Phay!Shian Friday!8.00am Leader
Lee!Yet!Yee Monday!12.00pm N/A
Madeline!Liew!Zhi!Qi Wednesday!2.00pm N/A
Heng!Sy!Hua Monday!12.00pm N/A
Tam!Zhao!Wei! Wednesday!2.00pm N/A
No. AcMvity AcMon&Taken&By Details
1 Introduc?on Yeap!Phay!Shian Briefing!on!mee?ng!topics!and!assigned!
works.
2 Research All!Members Research!in!common!interview!ques?ons!
and!how!Tradi?onal!Chinese!Medical!had!
been!conducted.
3 Discussion All!Members • Discussed!on!the!interview!ques?ons.!
Then,!the!final!set!of!interview!
ques?ons!have!been!concluded!
• Decide!on!the!interview!dates!
• Delegate!works!for!the!interviews
4 Making!appointment Madeline!Liew!
Lee!Yet!Yee
Madeline!and!Yet!Yee!made!appointments!
with!the!interviewees!at!on!October!30,!
2015!respec?vely!in!the!acernoon!and!at!
night.
5 Plan!I?nerary All!Members Planed!the!i?nerary!for!the!interviews.
6 Delega?on!of!Work Yeap!Phay!Shian Delegated!different!jobs!to!all!members!
evenly!in!order!to!ensure!smooth!
interview!session.!
7 Conclusion Yeap!Phay!Shian Recap!on!all!discussed!maaer.!
8 End All!Members Mee?ng!adjourned.
FNBE!August!2015!ECONS Integrated!Project!Report 45
49. Minutes&of&MeeMng&3&
Amendees:&
Minutes:&
Date: October!30,2015
Time: 3.00pmA4.00pm
Venue: Keretapi!Tanah!Melayu!(KTM)
Names&of&Group&Members Tutorial&Group Role
Yeap!Phay!Shian Friday!8.00am Leader
Lee!Yet!Yee Monday!12.00pm N/A
Madeline!Liew!Zhi!Qi Wednesday!2.00pm N/A
Heng!Sy!Hua Monday!12.00pm N/A
Tam!Zhao!Wei! Wednesday!2.00pm N/A
No. AcMvity AcMon&Taken&By Details
1 Introduc?on Yeap!Phay!Shian A!short!briefing!on!the!assigned!work.
2 Discussion All!Members • Revised!on!the!informa?on!gathered!
• Analyse!and!interpret!the!informa?on!
gathered
3 Research All!Members Further!researches!had!been!conducted!
as!to!support!the!informa?on!gathered.
4 Giving!Sugges?ons All!Members All!members!sound!out!their!
recommenda?ons!to!improve!the!
business!of!Cze!Kong!Medical!Hall
5 Announcement Lee!Yet!Yee There!was!a!change!in!plan!with!the!
interviewee.!The!onAsite!observa?on!of!
the!shop!was!postponed!to!the!following!
day!acer!the!interview!session.
6 Conclusion Yeap!Phay!Shian Recap!on!all!discussed!maaer.!
7 End All!Members Mee?ng!adjourned.
FNBE!August!2015!ECONS Integrated!Project!Report 48
50. Minutes&of&MeeMng&4&
Amendees:&
Minutes:&
Date: October!31,!2015
Time: 11.00amA12.30pm
Venue: Lee!Yet!Yee’s!house
Names&of&Group&Members Tutorial&Group Role
Yeap!Phay!Shian Friday!8.00am Leader
Lee!Yet!Yee Monday!12.00pm N/A
Madeline!Liew!Zhi!Qi Wednesday!2.00pm N/A
Heng!Sy!Hua Monday!12.00pm N/A
Tam!Zhao!Wei! Wednesday!2.00pm N/A
No. AcMvity AcMon&Taken&By Details
1 Introduc?on Yeap!Phay!Shian A!short!briefing!on!the!assigned!work.
2 Discussion All!Members • Revised!on!the!informa?on!gathered!
• Analyse!and!interpret!the!informa?on!
gathered!
• Select!and!edit!the!best!photos!to!be!
inserted!in!the!research!report
3 Research All!Members Further!researches!had!been!conducted!
as!to!support!the!informa?on!gathered.
4 Giving!Sugges?ons All!Members All!members!sound!out!their!
recommenda?ons!to!improve!the!
business!of!Chop!Yan!Tuck!Medical!Hall
5 Delega?on!of!Work Yeap!Phay!Shian Works!including!the!presenta?on!slides,!
research!report!and!the!video!were!
distributed!evenly!to!all!members.
6 Conclusion Yeap!Phay!Shian • Recap!on!all!discussed!maaer!
• Confirmed!dates!to!start!work!
7 End All!Members Mee?ng!Adjourned.
FNBE!August!2015!ECONS Integrated!Project!Report 49
