This report provides a comparative analysis of two Chinese herbal medicine shops located in different geographical areas: Poh Aun Tong Medical Hall in Georgetown, Penang and Huah Shan Medical Hall in Klang Valley, Selangor. Interviews were conducted at each shop to collect information. The report analyzes the collected information through research and concludes that Huah Shan Medical Hall is more commercially successful due to having a greater annual revenue, higher customer numbers, and offering a wider variety of goods. Recommendations are provided for how the businesses can improve their competitiveness.

3.
School Of Architecture, Building & Design
Foundation In Natural & Built Environment
Presentation Title :
Research Assignment Report (Chinese Herbal Medicine Shop)
Group Members :
Name Presentation / Research Report Roles
SEET TIONG HONG Overall Checking
NGIENG TIEN YUNG Brief Bio Of Businesses
TERENCE TAN Reference
LING SUE ER Comparative Analysis
OOI YIN JI Appendices
TAN MING HOWE Design and Video
DANIEL SONG Recommendation
LILLIAN TAN AI JUN Conclusion
English 2 [ELG 30605]
Lecturer : Cassandra Wijesuria
Submission Date : 1st June 2015

4. Table of Contents
No. Title Page Number
1. Artistic Cover 1
2. Cover Page 2
3. Table of Contents 3
4. Summary 4
5. Description Of History Of Business 5 ­ 6
6. Research Report
A. Brief Bio Of The Businesses
B. Comparative Analysis
7 ­ 17
7. Conclusion 18
8. Recommendations 19 ­ 22
9. Bibliography 23
10. Appendices 24 ­ 39
11. Minutes Of Meeting 40 ­ 47
12. References 48 ­ 49

5. SUMMARY
This report is a comparative analysis of two Chinese medical herb businesses in different
geographical locations. The chosen industry is known to have an uninterrupted history of
development dating back to thousands of years, in China and other parts of the Far East. The
selected Chinese medical halls are Poh Aun Tong Medical Hall in Georgetown, Penang and
Huah Shan Medical Hall in Klang Valley, Selangor. Interviews have been conducted in each of
the respective medical halls in order to obtain further information from both businesses. ​The
collected information has been analyzed and justified through research carried out with reliable
sources in reference. It is concluded that Huah Shan Medical Hall is more commercially
successful than Poh Aun Tong Medical Hall due to a greater annual revenue, a higher number of
customers and also, a wider variety of goods provided. Moreover, several impactful
recommendations such as hire more personnels, advertising and so on that could be undertaken
by the businesses in order to improve their competitive edges have been included into the report
based on our careful analysis so that the businesses could compete in the market with
their full potential.
​ Huah Shan Medical Hall Poh Aun Tong Medical Hall

6. HISTORY OF THE TRADITIONAL CHINESE MEDICINE
(TCM) INDUSTRY
The origins of Traditional Chinese Medicine (TCM) can be traced back at least five
thousand years ago from the ancient China, making it one of the oldest and most long­standing
health care systems in the world. In the intervening millennia, the practice of Chinese herbal
medicine and TCM has developed and matured to become what it is today ­ a natural and holistic
system of primary health care that has been used by people from a wide range of cultural and
social backgrounds to effectively treat different chronic and acute health problems.
According to the history of China, the first traditionally recognized herbalist is known as
Shennong, a mythical god­like figure, who is said to have lived around 2800 BC. He allegedly
tasted more than a hundred types of plants and imparted his knowledge on the medicinal
properties of plants to his people. All his research and experimentation on medical herbs ​had
been recorded in a book named Shennong's ​Materia Medica​, which is known to be the earliest
completed Chinese pharmacopoeia reference.
Over the millennia, the ancient Chinese people have used themselves as guinea pigs to
continue testing different types of plants for their medicinal properties. The accumulation of
practical experiences had strengthened their understanding on pharmacological category,
toxicity, and lethal dosage of different herbal plants. ​As to this day, it is known that more than
three hundred types of herbs that are commonly used in the modern society today are found
written in the historical record. According to the modern Chinese clinical studies, these herbs
functions to not only increase the effectiveness of modern drug treatments, but at the same time
reduce their side­effects and also serve as an alternative or replacement for some western drugs
and medical therapy (Dharmananda, 1996).
Besides, with the ​succession of trading systems dominating the market between China and
India back in the past, ​TCM had been introduced to numerous places over Southeast Asia by the
Chinese and other oriental immigrants. It happened long before the independence of Malaysia
whereby during the time which our motherland was still known as “Tanah Melayu”. In the 19​th
century, the increased population of Chinese immigrants to Tanah Melayu had highly exposed
the locals to an exchanged cultures, tradition, knowledges and influences from China. Hence,
this is when and how Chinese medical herbs were brought in and established in the place to
where we are living in today. Pharmaceutical practices of TCM are then being handed down
from generations to generations until today, the industry has seen growth in different places
across the country.

7. In a nutshell, traditional Chinese medicine plays a very important part in the history of
medicine. Understanding TCM through a historical context gives an insight to this ancient form
of medicine and also establishes its validity as a healthcare system.
​ Shennong as depicted in a painting in 1503, tasting different types of plants (left)
Shennong's ​Materia Me​dica (right)

8. BRIEF BIO OF BUSINESSES
A) Poh Aun Tong Medical Hall, Penang.
Poh Aun Tong Medical Hall is located at 125, Campbell Street, 10100, Georgetown, Pulau
Pinang, and is a small­scale family business. They are a traditional chinese pharmacy selling
traditional chinese herbs besides providing health­care consultation services. The pharmacy was
founded in 1965 by Mr. Chan Swee Foo and was operated single­handedly by himself. Ms. Chan
Soo Sum, his only daughter, started helping him at the age of 22 and managed to learn most of
the herbology­based knowledge from him. Ms. Chan officially took over the business in 1990
and has been running the shop since then. She does not have any employees to help her as she’s
able to cope with the workload, and because employees would need certain traditional Chinese
medicine (TCM) licenses in order to work in the hall.
Poh Aun Tong provides services that most of the pharmacies seem to be lacking in which
chinese herbs could be pre­decocted or decocted by Ms. Chan so that customers are able to get
the most out of the herbs as she understands that her customers might be very busy or lacking in
knowledge on the decocting of herbs. The majority of her customer are customers who have
patronised this business for many years. According to Ms. Chan, there will be no more than 10
customers visiting her shop daily and that most of her customers are adults and senior citizens.
She believes that sooner or later, TCM will be substituted by Western medicine. Furthermore,
there has been no changes or developments in her family business as she thinks that she will
have to retire in few years time and her only intention is to provide her services to the residents
of Georgetown.

9. B) Huah Shan Medical Hall, Klang Valley.
Huah Shan is currently located at No.33, Jalan USJ 10/1E, 47620 Subang Jaya, Selangor Darul
Ehsan. They are a modern chinese pharmacy which provides health­care consultation services
and also sells traditional chinese herbs. Huah Shan’s main branch is located in Taman Megah, SS
2 where Mr. Lee worked at for 8 years. The main branch was founded in year 1985 by Mr. Lee
Lap Man and was operated single handedly by himself. Since young, Mr. Lee desired to become
a chinese physician mainly due to his strong TCM background and his father’s influence, who
was also a Chinese physician. Today, there are a total of ten employees being employed to help
him manage two of the shops. He runs his business in such a way that he will diagnose patients
and delegate that his employees prepare the medicines or herbs to the patients ​based on the
prescriptions issued by him.
Moreover, Huah Shan provides services such as acupuncture and cupping therapy. Unlike the
other modern chinese pharmacies whose business models are money­driven as they are more
focused on processed and packaged products. Surprisingly, their best selling products are herbal
soup packs and dry herbs such as Bai Qu Cai. Besides that, utensils meant for decocting chinese
medicine are being sold here. The price range of their products is as low as RM 1 up till RM
3000. According to Mr. Lee, the minimum capital needed to start this TCM business amounts to
RM 200,000. An average of 20 customers are expected daily and 30 customers during peak
seasons such as durian harvest seasons. Most of his customers are adults and senior citizens. Mr.
Lee believes that TCM will not be substituted by Western medicine in the future as TCM has
centuries of historic culture and believes that every genre of medicine has its own benefits.

10. Similarities & Differences Of Both Business
Poh Aun Tong Medical
Hall
Similarities Huah Shan Medical Hall
­ Short­term Future Plan ­ Short­term
­ Local Customer
­ Senior Citizens
Targeted Market ­ Local Customer
­ Senior Citizens
Poh Aun Tong Medical
Hall
Differences Huah Shan Medical Hall
Founder
­ Mr. Chan Swee Foo
History
­ Emigrant from
China
­ Took over by Ms.
Chan
­ Operate single­
handedly
Founder & History Founder
­ Mr. Lee Lap Man
History
­ First shop in SS2
­ Chinese Physician Father
­ Determination to helping
the poor
­ 125, Lbh Campbell,
10100 Georgetown,
Pulau Pinang
Location ­ No.33, Jalan USJ
10/1E,47620 Subang Jaya
Selangor Darul Ehsan.
­ Current Branches 1
­ Workers Ten
­ Chinese Herbs
Types of Products Sold
&
Services
­ Packaged Herbs
­ Utensil
­ Pre­Decocts Herbs
Services ­ Acupuncture
­ Cupping Therapy

11. ­ Daily
­ 10 am to 7.30 pm
Business Hour ­ Monday ­ Saturday
­ 9 am to 8 pm
Second generation is
currently operating the
business
Business Operation Owner is an experienced Chinese
physician.
Around 10 Number of customers Around 20
­ Internet blogs
­ Newspaper articles
Media None
­ Old signboard
­ Antique cabinets
Shop Layout &
Atmosphere
­ Air­Condition
­ Tempered Glass
Around RM 180,000 Annual Revenue Around RM 400,000

12. Comparative Analysis Between Poh Aun Tong Medical Hall &
Huah Shan Medical Hall
I ­ Number of Competitors
Poh Aun Tong Medical Hall, which is located at George Town, Penang has only 2 top
competitors which are Cheng Woh Medical Hall and Kean Aun Hoe Medical Hall. On the other
hand, Huah Shan Medical Hall has 3 top competitors which is Hai O, Eu Yan Sang and Herbs
and Food.
II ­ Brief Description Of Competitors
Poh Aun Tong Medical Hall, Penang
Although there are many Chinese medical halls in Penang, Ms. Chan Soo Sum knows very well
who her competitors are. In the fore, Cheng Ho Medical Hall is the strongest competitor among
all, as they have been established for more than 80 years and has built long­term client
relationships. They provide over 500 different formulas of herbal soup, desserts and teas recipes.
Their best selling products are bird’s nest, packaged anti­aging supplements and traditional
Chinese herbs. Cheng Ho Medical Hall believes that people respond to incentives, hence
improves customers’ demand on products as they offer free delivery service for customers who
purchase products worth RM100 and above. To stay in the game, they also has their own official
website to gain a bigger market share as the website provides convenience to the customers.
Secondly, Kean Aun Hoe Medical Hall was established in year 1956. They are a family business
committed to provide friendly and trustworthy service to their customers. Their main products
are packaged ‘Penang Bak Ku Teh’ and Cordyceps Flower Soup Base. Both of the products have
received many positive feedbacks from local and international customers.

13. Huah Shan Medical Hall, Selangor
On the flip side, it’s much tougher to operate a Chinese medicine hall in Selangor as the
competitors are more aggressive in terms of marketing and expansion of businesses. ​Based on
Mr. Lee, Huah Shan Medical Hall has three top competitors around the area. Firstly, Hai­O
Enterprise Berhad which was established in 1975, and owns over 70 branches nationwide. They
offer a wide variety of complementary medicine, health­care products and much more. They
employ professional herbalists in every branch to advise their customers on herbs. Besides,
Hai­O Enterprise Berhad also has their own in­house brands which are recognized
internationally. They only import patented products that are approved by the Ministry of Health.
Secondly, Eu Yan Sang which started as a small Chinese medicine hall was established in 1879
and has built an empire of over 300 retail outlets globally. Eu Yan Sang provides more than 1000
types of quality traditional Chinese medicines, health foods, packaged anti­aging supplements
and much more. They offer over 300 varieties of products under their brand, Eu Yan Sang. In
order to increase customers’ demand, they also offers several kinds of special promotion for
members. Furthermore, they intentionally increase their brand awareness by organizing many
events locally and internationally such as the well­received Parenting Sharing Sessions, Natural
Organic Party, Thank You Teacher Campaign and many more.
Thirdly, Herbs and Food Sdn.Bhd was established in 1981. They are a modern Chinese medicine
hall dealing in chinese herbs, grocery, wines and packaged herbs. Their main products are bird’s
nest, homemade Chinese herbal jelly and wines. ​They believe that in order to improve their
products’ demand, incentive is a must for their customers as exemplified in their free member
only monthly wine tasting sessions. Moreover, they also apply promotions on their groceries
weekly as an incentive to potential customers.
​ Competitors of Huah Shan Medical Hall : Herbs N Food (left) and Hai­O (right)

14. III ­ Competition Strategies
A) Poh Aun Tong Medical Hall, Penang
I) Advertisement
In order to increase the brand awareness of the business, Ms. Chan has been accepting interviews
in order to feature in newspaper articles and blogs and both mediums have been receiving
positive responses.
II) Services
With their excellent services, Poh Aun Tong Medical Hall attracts many customers by word of
mouth. Ms. Chan who is a Chinese physician gives prescriptions based on results from the
measurement of her patients’ pulses. Moreover, Ms Chan also decocts herbs for those patients
who are too busy with their jobs to do this on their own. She has a good understanding of her
patients’ health and needs.
III) Pricing
All of the products are priced reasonably in accord to the market price. In order to increase
profit, she keeps the operating expenses low by reducing the utility expenses and by employing
no personnel.
Authentic measurement tools chinese scale and chinese grinder

15. B) Huah Shan Medical Hall, Selangor
I) Services
Mr Lee has established close relationships with his customers by providing trustworthy services
.He provides diagnosis based on pulse­measurement, acupuncture services, and cupping therapy.
Nowadays, most of the Chinese pharmacies do not provide these services as their business
models are profit­driven.
II) Pricing
The price of a product is an obstacle for potential customers who wish to purchase products. If
the price of the product decreases, the quantity demand will be increased. Mr.Lee sets a slightly
cheaper price compared to his competitors in order to take advantage of this principle.
Ms. Chan friendly and polite characters have been helping her in sustaining the business.

16. IV ­ Obstacles Faced By New Firms
A) Poh Aun Tong Medical Hall:
There are some obstacles faced by new firms. For example, Poh Aun Tong Medical Hall claims
that chinese herbs will eventually be replaced by modern medicine because the younger
generations believe that modern Western medicine is more effective and reliable as compared to
traditional Chinese medicine. Besides, there are more and more modern pharmacies emerging in
the market, which leads to increase in competition. Based on the principle of economics in a
monopolistic competitive firm, they are known that a greater number of competitors leads to a
weaker pricing power. Moreover, new firms would face difficulties in the process of getting
licenses in terms of time required as every type of herb has its own license. Furthermore, Ms.
Chan suggested that an
experienced individual is needed in order to start the TCM business. Nowadays, new firms are
required to install air­condition and tempered glass at the entrance due to hygiene reasons.
B) Huah Shan Medical Hall explains :
Huah Shan Medical Hall indicates that it is difficult to hire experienced individuals who have
basic knowledge about TCM these days as most of people are looking for jobs that pay high
salary with lesser working hours.
In order to start a new TCM shop, it also requires huge start­up capital as compared to decades
ago. Besides that, Mr. Lee said that nowadays owners of new firms do not have sufficient
knowledge and experience to operate the business successfully. Based on the principle of
economics, the meaning of economies of scale is the firm’s ability to produce its goods at
gradually lower cost over the long run. As such, new firms require some time to compete with
such prices. As established businesses already have some amount of customer loyalty, it’s very
hard to attract customers to go for other medicine halls.
​ Mr. Lim’s right­hand man, Mr. Koh (left) and the supplier, Mr. Tan (right)

17. V ­ Nature Of The Market
The nature of the market for Poh Aun Tong Medical Hall and Huah Shan Medical Hall is
monopolistic competition as both businesses are operating in a market structure full of
competitors selling similar but not identical products. Besides that, pricing power of
monopolistic competition is weak as the firms cannot influence the prices of their products
strongly because there are still many competitors who also hold influence on the pricing. If one
firm were to independently manipulate product prices, customers would swarm to other firms
who have not altered their prices. In order to maximize their profits, these business strive to
differentiate their product from that of their competitors. Moreover, it is very hard for
competitors to attract customers who have strong tendencies towards their preferred pharmacies.
Similar but not identical products from Huah Shan Medical Hall (left) and Poh Aun Tong
Medical Hall (right)

18. Comparative Analysis Summary Table
Competitive Traits Poh Aun Tong Medical Hall Huah Shan Medical Hall
1. Number of
Competitors
5 to 10 within the immediate area 10 to 15 within the immediate
area
2. Barrier to Entry (New
Firms)
High Barrier to Entry
­ Advancement of western medicines
­ Increase competition due to many
emerging modern pharmacies
­ No firm control on majority of raw
materials needed to produce a
product
High Barrier to Entry
­ Difficulties in hiring
experienced individuals
­ Huge start­up capital
­ Difficult to attract
customers from
established medical halls
3. Differentiated or
Standardized Products
Differentiated Products
­ Rare traditional chinese herbs
­ Pearl powder
Differentiated Products
­ Cooking Utensils
­ Groceries
­ Packaged anti­aging
supplements
4. Pricing Power Price taker
­ Weak pricing power
­ Causes the business have no ability
to charge the price higher than the
market price unreasonably, lest
customers will turn to other
competitors
Price taker
­ Weak pricing power
­ Constrained to follow
the market price
determined by supply
and demand
5. Other Characteristics Substitute goods
­ Modern Medicine
Substitute goods
­ Modern Medicine
6. Verdict Monopolistic Competition Monopolistic Competition

19. CONCLUSION
Based on the comparative analysis, it has been concluded that Huah Shan Medical Hall in Klang
Valley is more commercially successful as compared to Poh Aun Tong Medical Hall in
Georgetown, Penang. This statement has been supported by evidences obtained through research
and critical analysis based on economics principles.
Firstly, Huah Shan Medical Hall has two outlets, with their main outlet located at Taman Megah,
Petaling Jaya and the second outlet being located in Subang Jaya, Klang Valley. As for Poh Aun
Tong Medical Hall, the business has continued to operate within a single outlet for a period of
more than 40 years. Hence, with 2 outlets with each operating at different locations, the amount
of income and the business’s annual revenue figure of Huah Shan Medical Hall is reported to be
higher as compared to that of Poh Aun Tong Medical Hall. In addition, the average number of
customers who visits the outlet daily for Poh Aun Tong Medical Hall is estimated to be
approximately 10 customers per day, whereas Huah Shan Medical Hall has twice the amount of
customers as compared to that. Ultimately, a greater number of customers led to an increase in
the revenues and therefore, the amount of profit generated annually tends to be higher for Huah
Shan Medical Hall, resulting in a more successful commercialized business within the industry in
comparison to Poh Aun Tong Medical Hall.
Secondly, besides having Chinese herbs as the main­selling products in both businesses, Huah
Shan Medical Hall also provides a wide variety of goods such as packaged herbal soup recipe,
organic food supplement, medical ointment, dry goods, snacks and more. On the contrary, Poh
Aun Tong Medical Hall has shown a lack in variety of goods and products sold as the business
adheres firmly to their own principles and traditions such that Chinese medical herbs and
ointment remain as their main and only focus in the market. As a result of product variation in
Huah Shan Medical Hall, consumers are provided with a wide range of choices and are able to
purchase according to their preferences instead of being bounded by limitation with only a single
or two options. Hence, it is concluded that more customers can be drawn to the firm, thereby
creating more business opportunities to take place in Huah Shan medical store as compared to
Poh Aun Tong Medical Hall.
In conclusion, Huah Shan Medical Store is more commercially successful than Poh Aun Tong
Medical Hall due to the supporting reasons as stated above which includes a greater amount of
income and business’s annual revenue, higher average number of customers visited daily and last
but not least, a wider variety of goods provided.

20. RECOMMENDATIONS
After the study was completed, it was determined that the businesses were lacking in specific
areas, which hinders their ability to compete to their full potential in the market. The following,
is a set of recommendations which can be undertaken in order to improve their competitive edge.
Poh Aun Tong Medical Hall, Penang.
A1 ­ Area Of Focus & Current Diagnosis :
Location & Accessibility
The business currently only owns one outlet, which is located in the heart of Georgetown, where
vehicular circulation is poorly organised. As such, customers may find reaching the outlet
difficult. Also, given its position in the heart of the sprawl of the city, it can be difficult to find its
specific location. People who are unfamiliar with the outlet will find it hard to reach. This can
seriously hamper the potential the business has to expand in its market and develop.
A2 ­ Recommendation(s) Of Improvement :
Relocate The Outlet
The option to relocate the only existing outlet is viable in the sense that moving it to a more
accessible and navigable area would allow the current pool of potential customers to be
expanded. Perhaps a more accessible, suburban area like Gelugor would be a good alternative.
Open Multiple Outlets
This option would allow for the authenticity and novelty of the original outlet to be retained,
while allowing for the business to become more accessible to existing and potential customers.
B1 ­ Area Of Focus & Current Diagnosis:
Brand Awareness & Distinctivity
Generally, with medical halls as antiquated as the one we studied, brand awareness is almost
totally reliant on word of mouth and brand loyalty. As observed, Poh Aun Tong is almost
unknown to those who do not use its services, or buy its products. The closest this business is in
the way of advertising is a customised tote bag it distributes to those who buy products from its
outlet. The outlet is also indistinct from other shops in the vicinity, let alone other medicine halls.
B2 ­ Recommendation(s) Of Improvement:
Engage in Advertising
This manner of improvement involves the use of flyers, advertisements on billboards,
newspapers, or any other form of mass media. This will raise awareness of the business, which
will attract customers, driving profits higher while giving this business the edge over competitors
who have not caught on.

21. Distinctive Outlet Identity
The business needs to ensure that the outlet is pronounced, and well defined amidst its
surroundings, even among other medicine halls. This can be done through the use of noticeable
signage, and a recognisable exterior
C1 ­ Area Of Focus & Current Diagnosis:
Cost of Operations & Profit
Aforementioned facts have stated that the Poh Aun Tong Medical Hall is a small business, which
has been established for a long time. Due to the obligation to tradition, as well as the desire to
preserve the original identity of the business, cost of operations has not been decreased in the
areas of technological improvement, and stagnant business size.
C2 ­ Recommendation(s) Of Improvement:
Utilise Modern Technology
Through the use of modern technology, this business can provide services, and produce
medicines in a much more efficient manner, driving up profits indirectly. For example, through
use of modern scales and weights, and industrial grade centrifuges
Grow the Size of the Firm
This measure will allow the medicine hall to gain bargaining power, as suppliers are more
obligated to provide better prices for larger firms. This in turn, decreases the cost of operations
the business incurs. This is especially important in the purchase of supplies and raw materials,
which this business engages in often.
Huah Shan Medical Hall, Klang Valley.
A1​ ­ ​Area Of Focus & Current Diagnosis:
Product Variation & Distinctivity
As of now, the reach of Hua Shan in terms of customers and market share may be limited, due to
the fact that the products which are sold in Huah Shan are not distinct or varied from the
products which are sold in other medicine halls, in the surrounding area. This reduces the ability
of this business to perform at its full potential, as it has to constantly compete with the other
medicine halls which are located at such proximity due to the fact that they all sell similar
products.

22. A2 ­ Recommendation(s) Of Improvement:
Variation of Products & Sales of Unique Commodities
This measure involves acquiring different products, which are not available in the other medicine
halls in the vicinity. This can be done by seeking different suppliers, who can provide rarer
products for the outlet to sell. This will drive customers to Huah Shan, as it has a variety of
products, which is not available elsewhere. This in turn, greatly increases the firm’s competitive
edge.
B1​ ­ ​Area Of Focus & Current Diagnosis:
Skilled Labour & Trained Medical Personnel
Huah Shan is not simply a shop where traditional Chinese medicine is distributed, but also serves
as a clinic of sorts, where one receives diagnosis and treatment for specific ailments. However,
as stated. Huah Shan operates with the expenditure of very few staff and personnel. This causes
certain problems, especially considering that Huah Shan cannot hire any applicant who wishes to
work in the firm, but must carefully select staff who are knowledgeable in the area of traditional
Chinese medicine. During peak seasons, they are understaffed, especially in the clinic, as only
one practitioner is available for consultation and service. This can decrease the productivity of
the firm.
B2 ­ Recommendation(s) Of Improvement:
Hire More Personnel
The firm could remedy the situation aforementioned, through the employment of more trained
personnel. This can be achieved by sourcing talent from training centers which specialise in
traditional Chinese medicine, or colleges which offer such sources. This way, the firm is able to
greatly increase productivity. For example, with the addition of more skilled staff, shop assistants
can be replaced by knowledgeable staff who are able to advise customers on medication, or
treatment, driving up the brand reputation and sales revenue. Also, by hiring more practitioners
of traditional Chinese medicine, more patients can be treated as the workload is now spread out
between more doctors.
C1 ­​ ​Area Of Focus & Current Diagnosis:
Location & Outlet Size
The current outlet is the only existing outlet that the firm owns and operates. The location of the
outlet is not conducive for business, as there are at least three other traditional medicinal halls in
the immediate vicinity, and countless more pharmacies. Besides that, Huah Shan has the ability
and capacity to expand the business, and can take this measure in order to develop it. Finally, the
outlet size may not be conducive in the short run if Huah Shan does grow, as the principle of
scale constraint applies, where it becomes inefficient to expand the business within the
constraints of the current outlet.

23. C2 ­ Recommendation(s) Of Improvement:
Open Multiple Outlets
By opening more outlets and medical halls, Huah Shan stands to gain tremendously. This is
understood in a threefold manner. First of all, by opening multiple outlets, the business will be
able to gain more revenue as the sales potential increases due to the expansion of the reachable
market. Besides that, by opening more outlets, Huah Shan does not need to directly compete with
the many medicine halls in the direct vicinity of the existing outlet. It will be able to compete
better. Finally, Huah Shan will be able to solve the problem of scale constraint if it does choose
to expand.
Huah Shan Medical Hall, USJ, Klang Valley

24. BIBLIOGRAPHY
1. Batugal, P., Kanniah, J., & Oliver, J. (2004). Chapter 3­ Research : Initial Country
Project Reports and Workplans. In Medicinal Plants Research in Asia (2nd ed., Vol.
Volume I, pp. 125­126). Serdang, Selangor Darul Ehsan: Bioversity International.
2. Chen, P. (1978). Traditional and Modern Medicine in Malaysia. The American Journal of
Chinese Medicine Am. J. Chin. Med., 7(3), 259­275.
3. Wang, Z., & Xie, P. (1999). The Origin Of Medical Pharmaceutical and Hygiene. In
History and Development of Traditional Chinese Medicine (Reprinted ed., Vol. 1, pp.
24­27). Beijing: IOS Press.
4. Ho, P., & Lisowski, F. (1997). Chinese Medicine: An Overview of Its Concepts and
History. In A brief history of chinese medicine (2nd ed., pp. 4­20). Singapore: World
Scientific.
5. Hsu, E. (2001). Correlative cosmologies. In Innovation in Chinese medicine (Illustrated
ed., Vol. 3, p. 121). Cambridge, New York: Cambridge University Press.

25. APPENDICES
This is a compilation of interview notes, documents and photos of both Chinese herbal medicine
halls, as well as the background details of their competitors that were recorded in the process of
investigating and comparing both businesses.
A) Poh Aun Tong Medical Hall, Penang.
I. Details of the business
Shop sign of the business (left) and front view of the shop (right).
Interior view of the shop.

26. II. Details of the owner
Current owner, Miss Chan.
Miss Chan’s business card.
Certificate of Miss Chan as a valid Chinese Physician.

27.
Founder of the business, Mr. Chan Swee Foo (left) and his wife.
The books that were used by Miss Chan as references.

28. III. Products & services provided
Main products sold: Chinese medical herbs
Poh Aun Tong sells herbs which are rarely seen as well.
There are also packaged products such as traditional chinese medicine and chinese ointment.

29.
Services provided: Prescription for the patients and herb decocting.
IV. Strategies of promotional advertising
Articles taken from both English and Chinese newspapers which promote the rare products
and services provided by Poh Aun Tong.
Media report by China Press.com on 29 May 2013.

30. V. Top Competitors
I. Cheng Woh Medical Hall, Penang.
Exterior and interior view of Cheng Woh.
Products sold by Cheng Woh Medical Hall include soups, teas, desserts and chinese herbs.

31. II. Kean Aun Hoe Medical Hall, Penang.
Front view of Kean Aun Hoe.
They sell soups that were made by their secret recipes. The special Kean Aun Hoe recipe
Penang Bak Ku Teh (left) and special Ginseng Soup Base (right).
Kean Aun Hoe Medical Hall sells valuable bird’s nest and herbs as well.

32. VI. Documents
Printed interview questions.
Handwritten notes which were recorded during the interview process.

33. B. Huah Shan Medical Hall, Subang Jaya.
I. Details of the business
Front view of the shop.
Closer view of the shop.

34. II. Details of the owner.
The founder and current owner, Mr. Lee.
Above are license of Mr. Lee to run his business (left) and business card of Mr. Lee (right).
Mr. Lee refers to books to widen his knowledge about chinese medicine.

35. III. Products or services provided.
Chrysanthemum is one of the main products as well.
Variety of chinese herbs available at Huah Shan Medical Hall.
They provide services such as cupping therapy and acupuncture.

36.
Mr Lee uses these to provide a better understanding of the sickness to his patient.

37. IV. Top Competitors
I. Hai­O Enterprise Berhad.
Front view of Hai­O.
They sell various products which are traditional as well as modern one such as traditional
chinese pills (left) and Bamboo salt drink (right).

38. II. Eu Yan Sang.
.
Front view of Eu Yan Sang (left) and surrounding area of the shop (right).
Chicken Essence and Bird’s Nest are the main products of Eu Yan Sang. They promote their
main products by combining them into gift hampers (right) which are in a lower price.
Above are promotion advertisements of Mother’s day and Father’s day. They have very strong
promotion strategies especially during the festival such as Chinese New Year.

39. III. Herbs N Food Sdn Bhd.
Exterior view of the shop.
Packaged herbs are the main products of Herbs N Food.
They sell special products such as homemade honey drink, homemade chinese herbal jelly (left)
and bird’s nest, snacks (right).

40. V. Documents
Handwritten interview notes that the transcriber used to document the interview process.

41. Minutes Of Meeting (1)
Date 28th April 2015 (Tuesday)
Time 12.30 PM
Venue LT 7, Taylor’s University Lakeside Campus
Attendees:
Name of group members Tutorial Group Role
Seet Tiong Hong Wednesday, 8am­10am N/A
Tan Ming Howe Wednesday, 8am­10am N/A
Terence Tan Peng Ong Wednesday, 8am­10am N/A
Ling Sue Er Wednesday, 8am­10am N/A
Ooi Yin Ji Thursday, 8am­10am N/A
Lillian Tan Ai Jun Thursday, 8am­10am N/A
Ngieng Tien Yung Thursday, 8am­10am N/A
Daniel Song Thursday, 8am­10am N/A
Minutes:
No. Activity Details
1. Introduction Discussed and made clear about project brief and submission
requirements
2. Discussion of business Discussed and decided to choose TCM business
3. Discussion of plan Discussed and set a plan of how to progress (refer to Table 1.1)
4. Delegation of duties Made clear about duties and details of duties and delegated to
every member (refer to Table 1.2)
5. End Meeting adjourned

42. Table 1.1 : Schedule of progression
Date Action
By 31.04.2015 Shops selection and interview appointment of the business at Penang
02.05.2015 Interview of the business at Penang
By 15.05.2015 Shops selection an interview d appointment of the business at Kuala Lumpur
18.05.2015 Interview of the business at Kuala Lumpur
Table 1.2 : Delegation of duties
Name Role
Seet Tiong Hong Leader / Transport / Overall checking of report
Tan Ming Howe Video recording / Report writing
Terence Tan Peng Ong Interviewer / Report writing
Ling Sue Er Interviewer / Research / Presentation slides
Ooi Yin Ji Research / Report Writing / Note­taker
Lillian Tan Ai Jun Research / Report Writing / Note­taker
Ngieng Tien Yung Interviewer / Research / Report writing
Daniel Song Research / Report writing

43.
Minutes Of Meeting (2)
Date 11th May 2015 (Monday)
Time 11.00 AM
Venue Outside Library, Taylor’s University Lakeside Campus
Details:
Meeting called by Seet Tiong Hong
Notes taken by Ooi Yin Ji
Subject Regarding report writing and shops selection at KL
Attendees :
Name Tutorial Group Role
Seet Tiong Hong Wednesday, 8am­10am Leader / Transport / Overall checking
Tan Ming Howe Wednesday, 8am­10am Video recording / Report writing
Terence Tan Peng Ong Wednesday, 8am­10am Interviewer / Report writing
Ling Sue Er Wednesday, 8am­10am Interviewer / Research
Ooi Yin Ji Thursday, 8am­10am Research / Report Writing / Note­taker
Lillian Tan Ai Jun Thursday, 8am­10am Research / Report Writing / Note­taker
Ngieng Tien Yung Thursday, 8am­10am Interviewer / Research / Report writing
Daniel Song Thursday, 8am­10am Research / Report writing

44.
Minutes :
No. Activity Details
1. Introduction Brief of current progression
2. Discussion of situation Discussed about current situation and problems addressed
(refer to Table 2.1)
3. Delegation of duties in
report writing
Discussed about roles of each member in report writing
(refer to Table 2.2)
4. End Meeting adjourned
Table 2.1 : Problems addressed
Problems Actions
Rejected by every shops that we had contacted
at Klang Valley
Expand shops selection area and contacted
more shops
Incomplete information of competitors at
Penang
More research to be done
Table 2.2 : Delegation of duties in report writing
Name Role
Seet Tiong Hong Overall checking of report
Tan Ming Howe Artistic cover
Terence Tan Peng Ong References and Bibliography
Ling Sue Er Comparative Analysis
Ooi Yin Ji Appendices and Minutes of meeting
Lillian Tan Ai Jun History of industry and Conclusion
Ngieng Tien Yung Brief bio of business

45. Daniel Song Recommendations
Minutes Of Meeting (3)
Date 15th May 2015 (Friday)
Time 3.00 PM
Venue Open air seating area, Level 2, Taylor’s University Lakeside Campus
Details:
Meeting called by Seet Tiong Hong
Notes taken by Ooi Yin Ji
Subject Preparation for trip to KL on 18th May 2015
Attendees :
Name Tutorial Group Role
Seet Tiong Hong Wednesday, 8am­10am Leader / Transport / Overall checking
Tan Ming Howe Wednesday, 8am­10am Video recording / Report writing
Terence Tan Peng Ong Wednesday, 8am­10am Interviewer / Report writing
Ling Sue Er Wednesday, 8am­10am Interviewer / Research
Ooi Yin Ji Thursday, 8am­10am Research / Report Writing / Note­taker
Lillian Tan Ai Jun Thursday, 8am­10am Research / Report Writing / Note­taker
Ngieng Tien Yung Thursday, 8am­10am Interviewer / Research / Report writing
Daniel Song Thursday, 8am­10am Research / Report writing

46.
Minutes :
No. Activity Details
1. Introduction Brief of current progression
2. Delegation of duties in
interview session
Discussed and assigned roles to each member in interview
session (refer to Table 3.1)
3. Discussion of execution Discussed about things to bring, transport arrangement,
video shooting equipment (refer to Table 3.2)
4. End Meeting adjourned
Table 3.1 : Delegation of duties in interview session
Name Role
Seet Tiong Hong Transport / Interviewer
Tan Ming Howe Video recording
Terence Tan Peng Ong Look for competitors
Ling Sue Er Interviewer
Ooi Yin Ji Look for competitors
Lillian Tan Ai Jun Note­taker
Ngieng Tien Yung Interviewer
Daniel Song Look for competitors
Table 3.2 : Discussion of execution
Items Details
Transport arrangement Seet Tiong Hong will be driving all the group members to KL
Video Shooting Tan Ming Howe will be preparing photography equipment

47.
Minutes Of Meeting (4)
Date 26th May 2015 (Tuesday)
Time 1.00 PM
Venue LT 7, Taylor’s University Lakeside Campus
Details:
Meeting called by Seet Tiong Hong
Notes taken by Ooi Yin Ji
Subject Regarding report writing and presentation slides
Attendees :
Name Tutorial Group Role
Seet Tiong Hong Wednesday, 8am­10am Leader / Transport / Overall checking
Tan Ming Howe Wednesday, 8am­10am Video recording / Report writing
Terence Tan Peng Ong Wednesday, 8am­10am Interviewer / Report writing
Ling Sue Er Wednesday, 8am­10am Interviewer / Research
Ooi Yin Ji Thursday, 8am­10am Research / Report Writing / Note­taker
Lillian Tan Ai Jun Thursday, 8am­10am Research / Report Writing / Note­taker
Ngieng Tien Yung Thursday, 8am­10am Interviewer / Research / Report writing
Daniel Song Thursday, 8am­10am Research / Report writing

48.
Minutes :
No. Activity Details
1. Introduction Brief of current progression
2. Discussion of situation Discussed about current situation and problem addressed
(refer to Table 4.1)
3. Delegation of duties Discussed and assigned roles to each member in interview
session (refer to Table 4.2)
4. End Meeting adjourned
Table 4.1 : Problem addressed
Problems Actions
Report of second business not
completed
Every member agreed that the report need to be done
by 30th May 2015
Presentation slides not yet prepared Some of the group members start working on it
Table 4.2 : Delegation of duties
Name Role
Seet Tiong Hong Presentation slides (layout)
Tan Ming Howe Report writing (artistic cover)
Terence Tan Peng Ong Report writing (references and bibliography)
Ling Sue Er Presentation slides (layout)
Ooi Yin Ji Report writing (appendices and minutes of meeting)
Lillian Tan Ai Jun Report writing (history of business and conclusion)
Ngieng Tien Yung Report writing (brief bio of business)
Daniel Song Presentation slides (design)

49.
References
1. Kean Aun Hoe is a Chinese medicine shop in Penang. (2015, January 23). Retrieved May
18, 2015, from​ http://www.keanaunhoe.com/#!address/cejz
2. Mark, & Reese. (2012, September 13). Season with Spice ­ an Asian Spice Shop:
Spotlight on Spice: A visit to Cheng Woh Medical Hall ­ a Chinese Herbal Medicine
Shop. Retrieved May 18, 2015, from
http://blog.seasonwithspice.com/2012/05/chinese­alternative­medicinal­herbs.html
3. Reuters, T. (2014, July 27). Three ways small drug stores can beat big­box competitors.
Retrieved May 18, 2015, from
http://www.theglobeandmail.com/report­on­business/small­business/sb­marketing/custo
mer­service/three­ways­boutique­drug­stores­stay­competitive/article12468461/
4. Tok Keong, T. (2015, February 11). Hai­O Enterprise Berhad. Retrieved May 18, 2015,
from ​http://www.hai­o.com.my/retailing.php
5. Essays, UK. (November 2013). The Background Of The Company Hai O In Malaysia
Business Essay. Retrieved May 18, 2015 , from
http://www.ukessays.com/essays/business/the­background­of­the­company­hai­o­in­mala
ysia­business­essay.php?cref=1
6. Essays, UK. (November 2013). Business Analysis Of Eu Yan Sang International Limited
Business Essay. Retrieved May 18, 2015 , from
http://www.ukessays.com/essays/business/business­analysis­of­eu­yan­sang­international
­limited­business­essay.php?cref=1

50. 7. Soo Sum, C. (2015, May 2). History and Background of Poh Aun Tong Medical Hall
[Personal interview].
8. Lap Man, L. (2015, May 18). History and Background of Huah Shan Medical Hall
[Personal interview].
9. Ong, A. (2014, October 17). GST will be a bitter pill for traditional medicine. FMT
NEWS. Retrieved May 19, 2015, from
http://www.freemalaysiatoday.com/category/nation/2014/10/17/gst­will­be­a­bitter­pill­f
or­traditional­medicine/
10. Si Yan, Y. (n.d.). More traditional Chinese medical professionals be introduced to
Malaysia: Experts. Xin Hua, p. 24. Retrieved May 19, 2015, from
http://news.xinhuanet.com/english/2015­02/27/c_134023295.htm