The Sheng Is A Family Managed Retail Business Essay

1434 Words Jul 20th, 2016 6 Pages
1.1 Business Challenge
The Sheng Siong is a family managed retail business that was registered in 1985. The supermarket began after the closure and resale of another supermarket – Savewell Supermarket - in which two of the founder were operating a butchery. The plights of the Sheng Siong began during its commencement year and had to do with the facility’s strategic location and lack of manpower. The Sheng Siong was located at the foot of a slope away from the main road and there were at least four provision stores within a small radius. However, stern policies such as ‘no-frills’, discounted prices, and excellent customer service that saw the owners help the customers carry heavy luggage up the stairs helped increase the customers visiting the store and open a new store in 1988.
In the decades to follow, the Sheng Siong would experience a financial decline resulting from the Asia Financial Crisis of 1997 and 1998 caused by multiple related factors such as weakness in the financial sector resulting from an overextension of credit, external sector challenges to do with current account deficits, and contagion of the decline of the Asian currency beginning with Thailand’s Thai Bhat decline (Goldstein 1998, pp. 8, 14, 17). During this time, the Sheng Siong was trying to increase its market share in Singapore’s retail sector against dominant supermarkets such as the Cold Storage and NTUC Fair Price. Additionally, the 9/11 attack on America led to a global financial shakeup…

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