Critical of its products have been certificated by

Critical success factors are the essential factors or
activity that must be performance well for ensuring the success of business. One
of the success factors of Nestle Malaysia is the halal assurance on their

Malaysia is a country made of many cultures, races and religions
with a population that currently stands at 31 million. As of 2018, there were
approximately 61.3 percent are Muslims. It is utmost importance for Muslims to
select goods that is permissible or lawful without doubt of their halal status.
Undeniably the halal product
not only appeals to the Muslims but also to the non-Muslims due to its stringent
quality control. Therefore, halal-labelled products have become a huge and
expanding market in the Malaysia. In Malaysia, the importance of Halal cannot
be overlooked; in fact, products without halal logo may face difficulty in
marketing it.  Furthermore, the word “halal” has been expanded into
international market and not the sole property of Muslims anymore. Since Malaysia
is one of the largest export economies in the world, if a company’s product
gets halal-certified, the company can enjoy limitless market opportunities.  

Nestle Malaysia has take necessary action to achieve this CSF
which is ensure all of its products have been certificated by the JAKIM. JAKIM
is a government-controlled agency that responsible for implementing the halal
certification system. Once the product gets halal certified, it provides
assurances that the Nestle Malaysia product has been thoroughly investigated
that are manufactured under the strictest hygienic and sanitary condition and
is compliant with the Islamic law. As a result, it gives guarantees to the
Muslims that what they buy and use is conform to the Islamic law.

Another CSF has been identify is pursue long-term effective cost
reduction in the business. It is important for a company to understand the essential
of pursue long-term cost reduction programs in order to survive in this
difficult economical moment. Nowadays, company faces difficulty to compete in
the market due to the global competition, shifting fuel rate, rising prices of
raw materials, more demanding consumers in emerging markets and etc. If the
company let the costs of operating spiral out of control, it could collapse due
to this very reason. Besides that, after the global economic crisis of 2008,
companies are encourage reducing costs to ensure they are well prepares for
future uncertainties even though they are doing relatively well now. Cost reductions
plans not only can prepare for future uncertainties but also can preserve
company resources for more critical tasks in the future. Companies should not
have the ideas that cutting costs in itself will harm to company’s
competitiveness or makes the business more limited.  

The action that the Nestle Malaysia should undertake to achieve above
CSF is improving the efficiency in the productive process so the company can
become more competitive in this sluggish economic environment. One of the ways
to improve efficiency in the productive process is invest in continued employee education. As a world’s largest food and beverage
manufacturer, Nestle is involve in manufacturing, machining and cutting
industry. These three industries have been constantly changing because there
are always have new development in technology that can make the process more
efficient that ever.  Technological advancements often change the skills required
for certain tasks, and workers will require access to regular training to keep
up with more advanced specialist skills.

Moreover, switching to
renewable power such as solar energy can help Nestle Malaysia to achieve
long-term costs reduction. The cost of invest in renewable might seem like a
significantly investment initially but the cost savings it generate mean the
system is economically viable. After recover the cost of investment, company
can enjoy real benefit of going renewable by using free sources energy for
decades. The costs reduction from switching to renewable energy can be
substantial. In long-term, renewable energy can reduce the costs of the company
and could even generate profits in the long run.



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