A. Introduction
This report addresses the strategic activities made by Bee Cheng Hiang (BCH) group. Currently, the group is focusing its efforts in expanding their businesses through overseas franchising programmes, which enabled them to successfully integrate their products within countries such as Malaysia, Korea, and China (BCH Group, 2014). Additionally, BCH prides itself in creating new product offerings and stringent quality controls through heavy investments in their research and development (R&D) activities (BCH Group, 2014). These evidences suggest that BCH is current adopting a broad differentiation approach within the next foreseeable years of the business.
But first, BCH needs to look at a few critical issues that might impede their progress in the industry. The first factor pertaining to amount of notable competitors looming in the industry. Other possible issues related to Bakkwa being branded as a seasonal yet unhealthy product, which heavily deters consumers from buying their product. With that being said, there is still a chance for the firm to be successful once these barriers are overcome. The firm’s industrial analysis and strategies are discussed further in depth throughout this report.

B. External Analysis
1. PESTEL Analysis
Political/Legal – Singapore has zero tolerance for criminal offences such as rioting and terrorism (Singapore Statutes Online, 2015). As such, its political stability makes it favourable for BCH to conduct their business. However,