Information is gathered from the formal interview session with the independent distributor of the product.

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A. INTRODUCTION
Background of the company
HPA Industries Sdn Bhd is owned by Tuan Haji Ismail bin Haji Ahmad. In September
1987, Tuan Haji Ismail bin Haji Ahmad had started the business in small scale that is
known as Perubatan Tradisional Al Wahida. After being operated in 8 years, this
business had developed well and the owner had established HPA Industries Sdn Bhd on
15 July 1995. HPA is refers to Herba Penawar Al Wahida.
The purpose this business is to introduce the traditional herbal as alternative remedy to
the citizen. So, they will realize that the traditional herbs also can cure several illnesses
in today’s life.
This company, through it branch Al Wahida Marketing Sdn Bhd had taken part in Multi-
Level Marketing (MLM) in 1997. It had got the MLM Syariah recognition from Syariah
Consultation Center, Indonesia. HPA Industries Sdn Bhd also had provided Syariah
panel to administer the business. So, the business will operate smoothly according to
Syariah.
In the year 2010, the company had owned 13 levels building of RM 54 000 at Seksyen 13
Shah Alam, Selangor. This building is known as HPA International Center (HPAiC)
where the owner had introduce it as the second company’s headquarter after Perlis.
There are 120 HPA’s branches over Malaysia and herbal concept shopping mall located
in HPAiC. The members of HPA in Malaysia is about 700000, in Indonesia is 400000, in
Brunei 10000, in Thailand 20000 and in Cambodia 3000.
The highest sales of the company are about RM 20 thousand a month. HPA also have
another business diversification such as 11 fast food restaurant, Radix Fried Chicken
(RFC), El Zahra Inn (Hotel), Organic Recipe Restaurant, Radix Pizza House (Indonesia)
and Institute of Islam and Arabic Centre.

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HPA Industries Sdn Bhd has its own GMP class factory from the year 1997. The
factories are located in Perlis, Kedah and Sabah. This company is managed by Managing
Director 1, with the help of Managing Director 2 and the general manager. The list of the
management staffs are as follow:-
 Managing Director 1, Tuan Haji Ismail Bin Haji Ahmad
 Managing Director 2, Tuan Haji Fisal Bin Ahmad Tajudin
 General Manager of Research & Development, Encik Abdul Ghani Bin Hussain
 General Manager of Finance, Encik Md Radzi Bin Hamid
 General Manager of Purchase & Warehouse, Puan Roslina Binti Mohd Alwi
 General Manager HPA Industries, Encik A. Zakaria Bin Abu Bakar
Nature of the business activities
HPA Industries Sdn Bhd had produced more than 300 products in the market. The
products includes of health products, daily care, food and beverage products, cosmetic
products, umrah and hajj service and others. The company is targeting to produce up to
2000 product in future.
The company had produced the health products for men, women and children. The
examples of health products produce by this company are laxative herbs, raisins, omega-3
softgel, habbatus sauda softgel and others. In order to ensure the cleanliness of the
products, the owner had developed his own farms such as Pennywort, Roselle, Spirulinna
in Sungai Petani and Perlis. For the information, all the workers that had been hired are
Muslim. They are being trained to practice Islam such as wudhuk before work, zikir,
perform solat dhuha and so on. So, the customer will satisfy with the way the products
are being produce.
Other business activities of the company are cupping, acupuncture, reflexology,
chiropractic, leech therapy and Al-Fasdu. This made the company different from others
because this is the high skill service. For example, the workers have to attend class and

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seminar to learn the skill. The skill like cupping is encouraged in Islam. It is the Nabi
Muhammad SAW sunnah. We as the Muslim should follow our prophet sunnah.
For the food and beverage product, this company has produce Radix Fried Chicken
(RFC) restaurant. RFC is the substitute product of KFC and Mac Donald. The
differences of this restaurant from others are the chicken is organic. It means that the
chickens are not being syringe by chemical product in order to enlarge the size of the
chicken. The chickens are being fed by habatus sauda and listening Al Quran 24 hours
every day. The products such as beverage and sauce also being produce by the company.
Other advantage of this restaurant is its own 100% by Muslim. So, the customer may eat
them without hesitation. The restaurant can easily be found by the customers because the
company had opened about 20 branches of restaurant all over Peninsular Malaysia. The
competitive advantage of this restaurant is they provide prayer room for Muslim’s
customer, the staffs also wear Muslimah attire. So, the customer will attract to purchase
at the restaurant because there is no such fast food restaurant in Malaysia practice that
such things.
HPA Industries Sdn Bhd also carries on multilevel marketing business (MLM). The
MLM is based on Syariah. The customers who want to increase their side income are
advice to join this business. They don’t have to worry about haram. It is because the
company had appointed Syariah panel from various background and state. They will
monitor the HPA MLM business. Furthermore, this business has got the MLM Syariah
recognition from Indonesia Syariah Consultation Centre.

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B. STRATEGIC PLANNING
HPA’S VISION
HPA is committed to creating a range of herbal products as an effective treatment method.
HPA’S MISSION STATEMENT
- HPA give priority to diversify the range of its herbal products and research programs that
will enhance the quality of the products that are effective and can help relieve the types
of illness.
- HPA supervise and provide facilities for entrepreneurs to further develop and enhance
the knowledge of the business towards success, families and communities
LONG TERM OBJECTIVE
1. Become a producer and distributor of herbal products No. 1 in Malaysia
2. To lead the herbal industry production in Malaysia that innovative, progressive and
visionary
3. Give priority to the improvement and development of the entrepreneur program
FUTURE GROWTH STRATEGIES
1. Multi Level Marketing (MLM) recognized by Shariah

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HPA entered the era of Multi Level Marketing (MLM) from 1997, and received recognition
from the Indonesian Shariah Consultation Center.
2. Koperasi Wanita Berhad
HPA establish Koperasi Wanita Berhad to give members an opportunity to share the
benefits. Estimates of return of 10 – 20 percent per month
3. Huge effort in advertising products by mass media
HPA advertise its products such as Kopi Radix, Radix Cola, Sarsi Cereal on tv3, tv9,
newspaper, public transportation and billboards.
4. High marketing plan
Offer 11 rewards to distributors through high marketing plan “ERA BARU” in producing HPA
entrepreneur that have 5 figure incomes every month.
5. Entrepreneurship training
Program Perkongsian Bijaksana (PBC) was created to provide guidance and assistance to
all members to carry out Sharia HPA MLM business. This program will highly effective in
order for helping the company to boost their monthly sales. The course is run by the leaders
of the HPA that has successful among Pengarah Jati Setia (PJS).
6. Cheap and affordable price
The HPA product prices very competitive and affordable. HPA also emphasizes principles
“IHSAN” in terms of product prices. This is to enable every each group; either rich or poor
people can afford to have it.
7. Produce variety of products
It is more than 400 types of products issued by the HPA and it consists of a variety of health
products (herbs), daily use, food, beverages, cosmetics, Umrah and Haj and others. HP's
target is to produce 500 kinds of products in the future.
8. JAWI Diagnosis
HPA introduces the concept of a Jawi Diagnosis that combining “ilahiah” and natural
resources. It consists of herbal medicine, knowledge diagnosis through palm nerve, eye and

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as well as cupping, acupuncture, reflexology and others. All members have the opportunity to
learn,
C. ANALYZE THE COMPANY PERFORMANCE
Herba Penawar Al-Wahida Industries which also known as HPA Industries Sdn Bhd has
operated from 1987. A lot of external forces that may harm and strengthen the organization
need to be analyze to ensure that their company can sustain in the industries. External audit is
done for the purpose of to identifying a finite list of opportunities that could benefit a firm and
threat that should be avoided. While, after external audit has been done, it is necessary to
proceed with the internal audit. All organization has strength and weaknesses in the functional
areas of business. No enterprise is equally strong and weak in all areas. HPA Industries Sdn
Bhd which consists of Malaysian entrepreneur always comes out with a new strategy aligned
with their vision and mission. Parts from that, HPA’s Seri Iskandar Branch also implement the
same nature of business.
The table 1.0 below summarized and evaluated the HPA’s Seri Iskandar major strength and
weaknesses. It is an internal force that affects the company.
In order to perform both external and internal audit, both the key external and internal factor
should be identified. The table 2.0 below summarizes and evaluates the major opportunities and
threat in HPA Seri Iskandar branch.
 INTERNAL FACTOR EVALUATION MATRIX
 EXTERNAL FACTOR EVALUATION MATRIX

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KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED
SCORE
Strength
1. Produce organic chicken, meat, lamb which
free from any chemical substances.
0.12 4 0.48
2. A big farm for Roselle, Spirullina and Asiatic
Pennywort.
0.13 3 0.39
3. Employee which consist of muslim and
practices muslim life in HPA Industries Sdn
Bhd.
0.03 4 0.12
4. First developed multilevel marketing in
muslim ways free from Riba’.
0.10 4 0.40
5. Implement three in one system which consists
of businesses, learning and consume.
0.12 3 0.36
6. Has diversification product such as Radix
Fried Chicken, Pizza, frozen foods and Hotel
El Zahraa Inn.
0.03 4 0.12
7. The products of HPA gets recognition from
GMP and IMP
0.07 3 0.21
Weaknesses
1. People prefer for product in which easy to
consume such as fast food.
0.07 1 0.07
2. Low management 0.33 2 0.66
Total 1.00 2.81

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KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE
Opportunities
1. Perak market consists of growing consumer
who concerned on Halalan Toyyiba product.
0.12 4 0.48
2. HPA’s Seri Iskandar organized a program to
share on how to do reflexology.
0.12 3 0.36
3. The recognition of HPA product which
consists of herb and it is good for long term
effect.
0.10 2 0.20
4. Society awareness to learn treatment for
diagnosis symptom of serious illness.
0.06 1 0.06
5. Taste of Radix coffee imitated is different with
the original in HPA.
0.02 2 0.04
6. High demand from stockiest 0.07 3 0.21
Threats
1. The existence of Tesco as HPA Seri Iskandar
competitor
0.10 3 0.30
2. Cupping treatment is known only in the area
Seri Iskandar and the existence of other
cupping centre.
0.07 4 0.28
3. People scared of the Islamic treatment such
as Leech therapy, Al-Fasdu, Kiropraktik,
acupuncture and cupping.
0.05 2 0.10
4. The bad perception about MLM Company. 0.09 3 0.27
5. Trend that consume others branded product
which well-known.
0.04 4 0.16
6. Extra time required for restock 0.05 3 0.15
7. Competitor’s company imitate taste of radix
coffee
0.07 4 0.28
8. The existence of HAIO, as the one of
competitors to HPA
0.04 4 0.16
Total 1.00 3.05

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Matching stage : A SWOT MATRIX
Implementing Alternatives Strategies
1. Forward Integration
HPA Industries branch Seri Iskandar should open more new store except more focusing on
certain area. This is because many of the consumers do not know the existence of their
diverse product. The existence of Radix Fried Chicken, Pizza, frozen foods and Hotel El
Zahraa Inn only made known in the area of Sungai Petani. Another new branch of those
products should be made aware to the consumer and non-consumer. HPA can control their
branch but the limitation is where their branches allocated is consist of independent
individual who likely to generate some income.
SO STRATEGIES
1. Send flyer to all Perak Market (S1,O1)
2. Purchase land to build a new store in
Perak (S2,O3)
3. Develop huge advertising promotion
(S5,O4)
4. Making product development (S7,O1)
WO STRATEGIES
1. Produce product that ease of use and
Halal. (W1,O1)
2. Make market penetration to attract –
affluent customers (WI,O6)
ST STRATEGIES
1. Add a new branch of product diversification
in Sri Iskandar, Perak(S6,T1)
2. Organized a seminar programmed (S4,T4)
3. Influence them by huge advertising about
the method and benefit of treatments.
(S5,T3)
4. Built a strong market through loyalty
customer program (S7,T8)
WT STRATEGIES
1. Hire more employees to manage the
business (W2,T6)

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2. Market development
Although HPA industries Sdn Bhd owned a big farm of Roselle, Spirullina and Asiatic
Pennywort, they should expand their product to the new geographic area instead of only
farming in the existence farm. HPA is trying very hard to enter the Indonesian market which
consists of Muslim society. This segment will be the future target market for HPA’s
consumer. The market uncertainty may be a trouble to HPA Industries since it involves a lot
of strategies to be used.
3. Market Penetration
As awarded Good Manufacturing Product and Islamic Manufacturer Product, HPA Industries
Sdn Bhd should always maintain their concept as it will be their strength to sustain in the
market. A lot of development program can be organized by HPA Industries Sdn Bhd
including seminar, practical to treatment provided to abolish the fear, and also to influence
and attract the people to consume HPA’s product who of course will give 100% benefit to all
every aspect of live.
4. Unrelated diversification
HPA Industries Sdn Bhd has already captured the heart of Muslim consumer. This is
because every product they produce will be based on Sunnah. The strength of their product
is they produce a huge unrelated diversify product which based on the Muslim practices.
Example of their product is herb, health, treatment, care, accessories, drinks, frozen food,
fast food, hotel, and plantation and so on. Diverse unrelated product will enhance that the
HPA Industries and their branches will attract a diverse market which values their product
and of course this will bring good opportunities to the HPA Industries.

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Implementing Strategies: Marketing
Across the border, countless marketing issues affect the success or failure of strategy
implementation. HPA Industries who recently widening their market shares throughout the
Malaysia and Indonesia need to have good marketing strategies. Firstly, the company should
make their advertisement more interactive to be effective. Effective advertisement and clear
information provided will ensure that HPA Industries Sdn Bhd and their branches will open the
eyes of the society. For muslim, it is important to eat, live and have a living style that based on
Islamic practices. HPA Industries Sdn Bhd should take a good take of the advertisement things,
because some people’s response will be either positively or negatively towards their product
and services.
Secondly, HPA Indusries Sdn Bhd should take advantage of the arising social network.
Nowadays, people are more connected via the internet. They simply find the information at their
fingertips without getting any payment. If they interested to find about HPA Industries Sdn Bhd,
they will go to the company websites and search for info that they want to know. It is necessary
for the company to take advantage from the social network including blogs, websites, YouTube
and Facebook. The internet made the world getting small and thus it is basically affect the
company productivity and of course their marketing strategies. Using social network will reduce
the cost in the company, because the development of social network does not require with high
involvement. Besides that, HPA Industries Sdn Bhd also can advertise their product and
services through online. It is more effective to those who actively join the online community and
social network. The company should encourage their consumer to giving their feedback,
opinion, criticism and suggestion about the company product and services.
According to the manager of HPA Seri Iskandar branch, the consumer can purchase their
product in high price. Although the price display is high but the quality of the product and
services is superb. For example, each cup for cupping treatment cost RM12, if the consumer
purchases more than 3 cups, the price will be lower. After the treatment, the consumer will fell
energize and healthier. In the company, the herbalist already investigates on the effectiveness
of their treatment and herb, so there are no worries to use the product and to undergo the
treatment. Thirdly, HPA Industries should make the purchasing price affordable with their
customer income. It is necessary to offer for discount for their regular customer. This strategies
will induce the consumer to repeatedly buy their product over and over.

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Next, the product and services offer should meet the customer requirement. This is to ensure
that the satisfaction from the customer is high. A good product and services should include the
aspects of quality, features and option, style, interesting packaging, product line, warranty and
also others attributes. Some people want to purchase a product because they like the design
and some may not. Thus, HPA Indusries Sdn Bhd and all of their branches should increase their
awareness on the product and services features thus increase the sales and customer market.
D. RECOMMENDATION AND CONCLUSION
HPA Industries Sdn Bhd is 100% belong to Muslim. It has survived for more than 20 years in
the herbal industry. The products are clean and halal so that it products are highly demand
among Muslim’s customer in Malaysia. The price is reasonable because this company
emphasize the principle of courtesy in the business. It is because, they want all people regardless
of rich or poor can consume the products. Moreover, each month HPA will donate half of its
profit to welfare organization, Maahad Tahfiz and orphanage. So, the consumer will donate
while purchase the products.
HPA had introduced “Perubatan Jawi” concept which combining natural and Islamic sources. It
consists of herbal medicine, science palms diagnosis, cupping, and others. All members have the
opportunity to learn and apply it back in real life. So, this company had increase workers job
satisfaction because they can increase their income with the skill they have. This company also
provides entrepreneurship training to its members. The purpose of this training is to provide
guidance and assistance to all members to carry out Syariah HPA MLM business. This program
is highly effective to help boost monthly sales of HPA.