The growth and evolution of SMEs in Singapore : a study of a local snack food producer

• Main Authors: Teo, Soon Kwong, Toh, Peggy, Soh, Geok Ping
• Other Authors: William Tan Chee Meng
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business::Management
• Online Access: http://hdl.handle.net/10356/63549
• Institution: Nanyang Technological University

This report focuses on one of the key vehicles that has contributed to the growth of the Singapore economy-- the small and medium enterprises (SMEs). With increasing competition and a seemingly saturated domestic market, it has become more difficult for the SMEs to continue to grow in the domestic market. To assist the SMEs in stimulating future growth, the Singapore government had introduced several schemes mainly providing developmental and financial assistance. These schemes encourage the upgrading of facilities to meet the higher standards set by the larger and more powerful competitors and also provide opportunities for SMEs to penetrate overseas markets. Tong Guan Food Products, a local snack food producer, is a typical example of a SME that has grown from a small family business to its present establishment in the domestic and regional markets. Besides distributing its products locally, the company has been exporting to several other countries. In addition, it had established manufacturing facilities and sales offices in countries where demand is substantial. In attempting to further consolidate its domestic presence, the company has also ventured into the retail sector recently. The study on Tong Guan Food Products covered two main aspects of the company's growth: domestic and overseas. This report outlines the company's strategies to stimulate growth and makes recommendations on the strategies that could be undertaken by the company to ensure growth in the long term. The recommendations place special emphasis on the need to enhance the company's premium image and the potential of further penetrating the domestic market through the setting up of retail outlets. Besides the domestic market, there is also tremendous opportunity for growth in the overseas market through market development. It is recommended that the company adopt an export strategy design to systematically establish its presence overseas and eventually build a global brand awareness.