Conduct An Analysis And Conduct Strategic Recommendations For TWG Tea Company Based On Current Information.

TWG Tea Company

A key outcome with this report is to ensure that you are able to construct plausible strategisc grounded on solid research, through analysis and logical argument, all presented them in a report that is persuasive and clear.

Introduction:

TWG- The wellness Group has a very unique and exceptional logo which clearly portrays the uniqueness and innovation of its products.

TWG-(The Wellness Group) Tea is a very productive company for its achievement especially in respecting the traditions of the consumers. It was first established in Singapore to celebrate the islands history for it traded spices, tea and fine epicure products.TWG is known for its luxurious impression incorporating intercontinental supply system to experts, for its exclusive and creative retail outlets as well as the superb tea rooms (Czinkota et al, 2008).TWG Tea is a authentic tea institution that is very zealous in sharing its proficiency and it is known as a referral for the tea lovers. This is because TWG Tea travels all over the globe to sample varieties of teas in order to get the most enviable crop direct from the source gardens. It offers about eight hundred single estates fine harvest teas as well as exclusive blends. It also offers tea patisseries, loose tea, tea bags and tea infused delicacies among others. People across the globe recognizes TWG Tea as  veritable innovator for it always comes up with new varieties of tea and it collaborates perfectly with its estates that are well known across the globe. TWG Tea updates their products and the respect different traditions such as the European and Asians as they maintain their elegancy and beauty as they offer their product coated with a touch of sensuality and freshness (TWG Tea, 2010).

TWG Tea operates in most countries as shown below:

JAPAN http://www.twgtea.com/images/locations/locations-Jap-Jiyugaoka.jpg   http://www.twgtea.com/images/locations/locations-Jap-tokyo.jpg    TWG Tea Salon & Boutique
1-9-8 Jiyugaoka
Meguro-ku, Tokyo 152-0035
Japan
Tel/Fax: +81 (0) 3 3718 1588

Opening Hours:
Monday to Sunday 10am – 9pm
    TWG Tea Boutique
Shinmarubiru B1F
1-5-1 Marunouchi
Chiyoda-ku, Tokyo, Japan
Tel/Fax: +81 (0) 3 3213 1837

Opening Hours:
Monday to Saturday 11am – 9pm
Sunday & Public Holidays 11am – 8pm
MALYSYA http://www.twgtea.com/images/locations/locations-my-pav.jpg http://www.twgtea.com/images/locations/locations-KL-Airport.jpg  TWG Tea Salon & Boutique
Pavilion Kuala Lumpur
Level 2, Lot P2.16.00 & 2.34.01
168, Jalan Bukit Bintang
55100 Kuala Lumpur
Tel: +60 3 2142 9922

Opening Hours:
Monday to Sunday 10am – 10pm
TWG Tea Boutique
FE 6, Domestic Airside
Kuala Lumpur International Airport
Tel: +60 3 8776 0056

Opening Hours:
Monday to Sunday 6am – 12am
AUSTRALIA TWG Tea Dean & Deluca (US)    TWG Tea Boutique
David Jones, 65-77 Market Street
Sydney, NSW 2000
Tel: (02) 9266 5544

David Jones 500 Oxford Street,
Bondi Junction, NSW 2022
Tel: (02) 9619 1111


David Jones, 310 Bourke Street
Melbourne, VIC 3000
Tel: (03) 9643 2222

David Jones, 100 Rundle Mall
Adelaide, SA 5000
Tel: (08) 8305 3000

David Jones, 622 Hay Street
Perth, WA 6000
Tel: (08) 9210 4000
    Current company situations: PAST PERFOMANCE ASSESSMENT:             After starting in Singapore island TWG Tea flourished in a rapid pace and it became a free port. History has it that it became an emporium and a veritable crossroads located in the Eastern sea routes; by then it was  a place where there was an exchange of several commodities such as the fine tea, cotton, coffee, cloves, pepper and nutmeg among others. It was a well established gateway for the world-wide trade. As time went by the tea trade became official in Singapore and even now TWG is a booming (TWG Tea, 2010).

Current report.                  
TWG current report shows that a different firm continues to raise their stake in subsidiary TWG Tea Company. One of these numerous firms is the lifestyle product firm Osim which has raised its subsidiary from 53.7 per cent to 70 percent. The increase of the shareholding is heightened by the right issues at TWG Tea.              In addition, the TWG has already presented the curated selection of the coveted first flush Darjeeling harvests of 2014. The tea lovers have classified the harvest as champagne of teas and termed it as a literal works of arts. This stems from the outstanding quality, unique flavor as well as a higher percentage of sliver tips. The package is very exquisite for it the tea tin brightly ushers the consumer to the warmth of greater days ahead. TWG Tea is also presenting the connoisseurs with the premium quality loose teas in limited quantities from the noteworthy estates. Below is a picture of the gracefully enclosed in a sun-kissed Haute Couture tea for the 2014 (Your Singapore, 2010).   http://cdn.shopify.com/s/files/1/0051/5872/products/Darjeeling_Nouveau_2014_-_web_large.jpg?v=1397580657

External environmental analysis:        
This basically discusses the political, technological, environmental, social, economical and legal factor that may have an effect of TWG Tea company (TWG Tea, 2010).

Political:      
Singapore is known for having a stable government and if operates on a single party system and so it is able to implement variety of policies without interruption. Singapore is not known to be corrupt.       Singapore encourages free trade agreement and so it continues to encourage business people and investors to work within the country. Singapore has a great foreign investment and this promotes cash flow.

Implication:                 
With Singapore having political stability there is a great support from the government that embraces the foreign investment which makes Singapore to grow tremendously in business field. This is an indication that TWG Tea company can continue to move on and to boom as it operates in well built country where the products can be sold freely and investors boost the business as they trade in non-fraudulent country (Your Singapore, 2010).

ECONOMIC:             
Singapore is known for is low tax for goods and services. The Gross domestic products continue to increase and more precisely in the past decade as it registered 1.2 per cent rise in 2012 and 2013 respectively. Singapore has a target of achieving a productivity index of about 3 per cent every single year. The global economic crisis has no much effect of the high end goods. Manoj Murjani invested $10 million in TWG (Euromonitor International, 2008).  

Implication                        
With low tax and a determination to increase Gross domestic products in Singapore TWG Tea will definitely continue to thrive. This can be supported by the fact that even the global economic crisis did not damp the appetite because the TWG Tea continued to post strong sales and promoted some of its quality brands and they were recognized and consumed in greater amount across the world. Stable market can only increase the sales of products and the low tax regimes continue to provide a comfortable range for investors and consumers. Social: There is a great expectation that Singapore population is going to rise to about 6-9 million come 2020.this growth will not only be for the natives but also other people from different ethnic group, nationality, religion and race among others (Singapore Airlines, 2009).Singapore registered a large residential household in the past and even currently.Singapore envisions an ageing population of about 900, 000 by the year 3030.There will be low birth rate.

Implications:
To sustain the economy Singapore has already implemented a tangible solution for sustaining the economy. Therefore it invests on the foreigners that they encourage to invest this way it sustains the economy for it helps to cover for the ageing and the low birth rate. Therefore, TWG Tea company can only continue to boom for the competitors and the investors are well handled thus boosting investment. With most foreigners joining the rate of the investment and consumption will be so high and so the company will continue to thrive.

Technological.
Singapore is very connected for it has a recognizable and a worldwide network infrastructure.Singapore invests much on technology in order to enhance businesses.Singapore mostly favors research as well as development.

Implications.              
Singapore being recognized for its competitiveness in telecommunications especially in the Asian pacific has made it very easy for the stakeholders and investors. This makes communication easier and for TWG Tea they are able to utilize this great opportunity to network while advertising and selling their product. As an international company that distributes tea and tea products for professionals, retail outlets, and exquisite tea rooms the business network system is made very easier. It also means that the technology has made it easier for TWG Tea company to get in touch with prominent customers across the globe for they can even order their products online ( Department of Foreign Affairs and Trade, 2010).  

Environmental.
Due to the Global warming which affects the whole world Singapore propagates for environmental care which means that; they invest on solar energy ($ 1.7 Billion target come 2015) and also focuses on organic food consumption.

Implications.
Solar energy in itself is very environmental friendly and the government is working so hard to see that it is utilized across Singapore. TWG Tea embraces this by initiative as they use solar while parking and preparing their products. They also rejoice in their natural harvest and a quality one which means that they do not use chemicals for the tea production. The use of organic food consumption also is energy saving infrastructure for it is time saving and efficient for both the consumers and the retailers.

Legal.
Singapore has a law that protects consumers especially on the purchased goods.NEA-National Environmental Agency has strict regulation in food testing and inspection as well as in conducting a staff health checks ( Department of Foreign Affairs and Trade, 2010).

Implications:             
TWG Tea company adheres to the lemon law and the NEA as they produce quality products which they park with a lot of caution to their consumers. They also ensure that their staff members are very healthy before they employ them to handle the product and work in the tea boutiques.  

Internal Environmental Analysis:
This graph is a real indication of the great sales that TWG Tea company is making on a yearly basis.


https://encrypted-tbn1.gstatic.com/images?q=tbn:ANd9GcQGVgnXZA0bk9GGQvWHlFb4Z-8oeDHJvjTkXZqZoIZOldW6KL83KA Looking at the graph above it can be concluded that TWG Tea company; Is making a great sales.The net profit and the gross profit is very considerable.The return in Captial Employed increases graduall which means tha the sales continues to increase with good cash management.The gross profit to sales is decreasing and the cost inventory increases.The products are promptly sold and the stock movement is well managed (Marketing Teacher, 2010).  

Implication:                   

TWG Tea company continues to rejoice on their ever growing benefits from their increaing sales. This means that the demand is high which makes the supply as high too; this is a great opportunity for it offers great job opportunities for the people who work in the company. It also means that the economy of the Singapore country continues to thrive with the high returns it is getting from TWG Tea company. The products sold can be said to be of high and efficient quality since there is more and more consumers annually. Morevor,TWG Tea company is able to tackle its risks and threats in a very professional manner which ensures that their sales continues to rise despite the uncontrolable circumstances.

Industry analysis Key success factors (Lap of Luxury, 2009).  

KSF of TWG Tea company: Success factors Industry description TWG Tea company description Sustainability Product diversification TWG Tea company has lots of products as mentioned below The product respects the tradition of the consumers.The products are packaged using a unique package and TWG Tea logo.   Quality control TWG Tea sources, blends, designs, produces, packs and distributes high quality loose and packaged teas, teabags, tea accessories, tea infused patisseries and gourmet products The company ensures that the products are packaged with caution catering for the healthy needs of the individuals. It also follows the lemon law and NEA regulations.   Stake holders TWG Tea is a mounting business that looks for vigorous, innovative and committed investors and employees.

TWG values its stakeholders and it continues to communicate to them and share the endeavors of the company by networking using the advanced technology.   Sales and marketing Offering over 800 teas from 36 different countries including innumerable exclusive teas all hand blended in Singapore It offers an affordable pricing strategy.   Strategic locations TWG Tea salons, boutiques and retail counters, and circulated to a network of wholesale luxury hotel and restaurant customers throughout Asia, the Middle East, North America and Europe. Operates in many countries and in the central part where consumers can be able to reach.     Financial sustainability Has good financial outcome.It has great financial cash flow throughout even in its branches   company authority TWG Tea Company Pte Ltd entails a long history of permanent investigation and originality It follows the direct authority from the company governance.It is able to support the government initiative especially in being environmental friendly.  
          
TWG Tea porter’s 5 forces analysis (Kotler & Armstrong, 2010). http://i.investopedia.com/inv/articles/site/IndustryHandbook1x.gif

Threat of new Entrants (low)
They only have a conflict about the trademark rightThere is little or no competitors into luxury tea market even the Singapore tea Suppliers Company has not been a major threat.Other competitors or market followers into luxury tea market Australian customs barrier for tea imports
Slow economy and lower disposable income has led to a shift in priorities for consumers
 Bargaining power of suppliers (low)
There is a great product quality and variety as well as the knowledgeable service personnel

Strong pre-existing market that can be targeted with new product offerings to create new customer base

Few competitors improves market entry opportunities and increases chances of market acceptanceOpenness to foreign products with strong
brand identities overseasFinancial capabilities allow more freedom to
select a well-suited luxury location rand identity and positioningFinancial capabilities to expand  

Intensive rivalry among existing firm (low).  
Few competitors, especially in luxury product categoryTea market has been pre-tested by othercompetitors and proven to be sustainableAustralian market is becoming more affluent and open to foreign products due to multiculturalism

Bargaining power of buyers (low).
The products and services that TWG Tea offers are very good and so there is no way people can buy from the competitors.There are many tea lovers who value quality tea offered by the TWG Tea Company.  

Threat of substitute product high.  
Customs laws can impact on product variety (what is accepted) and quality (customs delays)Other competitors may head hunt service personnelThe economy or a shift in spending priorities can affect financial capabilities to expand Implications:              
The TWG Tea company Porters forces model indicates that so far, the company is doing great for even its SWOT can portray its achievement. The threats that are can be maneuvered and cannot be compared with the opportunities in the company. Even though some of the consumers may tend to buy from the competitors those who know quality cannot compromise the products they get from the TWG Tea.
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