Student agency that responsible for implementing the halal certification

Student name: Angel Ho Ling Ling   Id: 15WBR11137Critical success factors are the essential factors oractivity that must be performance well for ensuring the success of business. Oneof the success factors of Nestle Malaysia is the halal assurance on theirproducts. Malaysia is a country made of many cultures, races and religionswith a population that currently stands at 31 million. As of 2018, there wereapproximately 61.

3 percent are Muslims. It is utmost importance for Muslims toselect goods that is permissible or lawful without doubt of their halal status.Undeniably the halal productnot only appeals to the Muslims but also to the non-Muslims due to its stringentquality control. Therefore, halal-labelled products have become a huge andexpanding market in the Malaysia. In Malaysia, the importance of Halal cannotbe overlooked; in fact, products without halal logo may face difficulty inmarketing it.

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 Furthermore, the word “halal” has been expanded intointernational market and not the sole property of Muslims anymore. Since Malaysiais one of the largest export economies in the world, if a company’s productgets halal-certified, the company can enjoy limitless market opportunities.  Nestle Malaysia has take necessary action to achieve this CSFwhich is ensure all of its products have been certificated by the JAKIM. JAKIMis a government-controlled agency that responsible for implementing the halalcertification system. Once the product gets halal certified, it providesassurances that the Nestle Malaysia product has been thoroughly investigatedthat are manufactured under the strictest hygienic and sanitary condition andis compliant with the Islamic law. As a result, it gives guarantees to theMuslims that what they buy and use is conform to the Islamic law. Another CSF has been identify is pursue long-term effective costreduction in the business. It is important for a company to understand the essentialof pursue long-term cost reduction programs in order to survive in thisdifficult economical moment.

Nowadays, company faces difficulty to compete inthe market due to the global competition, shifting fuel rate, rising prices ofraw materials, more demanding consumers in emerging markets and etc. If thecompany let the costs of operating spiral out of control, it could collapse dueto this very reason. Besides that, after the global economic crisis of 2008,companies are encourage reducing costs to ensure they are well prepares forfuture uncertainties even though they are doing relatively well now. Cost reductionsplans not only can prepare for future uncertainties but also can preservecompany resources for more critical tasks in the future. Companies should nothave the ideas that cutting costs in itself will harm to company’scompetitiveness or makes the business more limited.

 The action that the Nestle Malaysia should undertake to achieve aboveCSF is improving the efficiency in the productive process so the company canbecome more competitive in this sluggish economic environment. One of the waysto improve efficiency in the productive process is invest in continued employee education. As a world’s largest food and beveragemanufacturer, Nestle is involve in manufacturing, machining and cuttingindustry. These three industries have been constantly changing because thereare always have new development in technology that can make the process moreefficient that ever.  Technological advancements often change the skills requiredfor certain tasks, and workers will require access to regular training to keepup with more advanced specialist skills.Moreover, switching torenewable power such as solar energy can help Nestle Malaysia to achievelong-term costs reduction.

The cost of invest in renewable might seem like asignificantly investment initially but the cost savings it generate mean thesystem is economically viable. After recover the cost of investment, companycan enjoy real benefit of going renewable by using free sources energy fordecades. The costs reduction from switching to renewable energy can besubstantial. In long-term, renewable energy can reduce the costs of the companyand could even generate profits in the long run.