Full Assignment Operation Management

OPERATION MANAGEMENT | BJMP 2033
CHAPTER ONE
INTRODUCTION
1.0
INTRODUCTION
Halal food industry in Malaysia is booming in recent years. Consumer demand on food has
also changed considerably. Alongside with the national aim to make Malaysia as the world
halal
hub (Habibah, 2011), the industry is gaining its popularity day by day and opens up
opportunities to halal food producers to expand their target market domestically and internationally.
Though halal concept relates the Muslim society in specific (Alam and Nazura, 2011), there is a
huge potential to tap the non-Muslim community interests when it comes to food. Food in general is
defined as anything eaten or taken orally to the body as a source of energy.
Furthermore, the fact that food is a common need among people, the market potential is even
more promising though people from different cultural backgrounds and religion have different
perceptions and experiences to food. In todays society, the increasing concern over health promotes
the acceptance on halal food as it covers the whole understanding of consuming clean and hygienic
food to promote better health. Consumers today are more aware of the importance of health thus
influence their behavior on food consumption. They search for food that can keep them healthy and
improve their mental state as well as their quality of life. In Islam, consuming halal food constitutes
an important aspect of the religion. The role of food in cultural practices and religious beliefs is
complex but has a unified understanding among Muslim followers. For instance, the halal logo or
label communicates and convinces Muslim consumers that the food product is produced and prepared
according to the Islamic requirement. On the other hand, the non-Muslim consumers understand that
food items carrying the logo are prepared in the most hygienic way and clean to be consumed.
Furthermore, it has also been proven that non-Muslim consumers do respond positively to
halal food certification (Siti Hasnah, Dann, Annuar and De Run, 2009). In Malaysia, the non-Muslims
constitute 38.7 percent of the population. This relatively high percentage of the non-Muslim
consumers could indicate the opportunity for this market to be tapped as the niche halal market which
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could then contribute more to the growth of halal food industry. (Muhammad, Norhaziah, Nuradli and
Hartini 2007) highlighted that halal food benefits not only the Muslims but everyone in general.
Therefore, this study aimed to determine the market acceptance level among the non-Muslim
consumers. Particularly, the research aimed to look into the acceptance level and the factors that
influence the acceptance.
1.1
PROBLEM STATEMENT
According to the study that researchers do about the non-Muslim perception towards Halal
food industry in Malaysia, the researchers have found several problem that might be occur that
probably effect the customer satisfaction in the states that has been chosen. The problem which
researcher can identify in this studies are about strengths, weaknesses, opportunities and threats. This
study is important for knowing the problem and find solution to the problem.
Firstly is Malaysian Halal certification is perceived as more valid compared to non-Muslim

country. In case, not only the Malaysia have a valid Halal certification but also there have certain
countries have their own valid Halal certification. Furthermore, this issues make the Malaysian afraid
to have Halal certification from other countries because they think it not valid in the country. Besides
that, some people make an expectation that money can buy Halal certificate and simply use it in their
businesses.
Secondly is some of the Halal logo is fake. In case, some group of people put fake Halal logo
on the inside and outside their premises. The owner use this Halal logo without permission or without
qualification from the JAKIM. In addition, they also convince customers that the restaurant is
registered under JAKIM. In the Sinar Harian newspaper dated 29 Oktober 2013 titled Traders use
fake halal logo, this case happened inBENTONG which an use unrecognized halal logo by JAKIM
to obscure the user's eyes become one of the tactics the trader to popularize their business primarily
involves the sale of food. Chairman of the Board Consumer Malaysia (MASB), Abdul Aziz Ismail
said monitoring carried out by the company, there are several business premises selling food in Rest
Genting Centre using that tactic. Besides that, he said traders halal logo patch in front of their
premises to attract customers especially Muslims. In this matter, the business to be more responsible
for their actions put fake halal logo on the front of the premises as 'cheating' customers. He added,
Muslim tradersneeds to put a valid halal logo to ensure the purity and cleanliness of the food is sold.

Thirdly is Strong government support for Halal development. In case, lack support from them
will suffered the manufacturer or group of individuals who involved Halal Food industry.
Additionally, it will also make certain company in field run riot. However, there are also some
companies took the opportunity to forge close ties with the people in the government to make the
business run smoothly. Consequently, other companies will feel oppressed and unhappy.
Lastly is the existence and emergence of haram and doubtful substance. In case, in this case,
the user feels that the products made by certain companies, particularly in the food industry have
suspicious materials such as a mixture with other substances added to foods have long to make the
food more fresh despite the fact that he has already bred worms and stank. Additionally, there are also
companies that mix the beef with pork in the same process to save cost. For instance, according to
Star Online in KL dated June 11, 2010 which Most of the employees wore labelled halal logo, but it
was a surprise when a food producing company detected also sells pork-based products. More
disgusting, pig meat-based food that is put pork meatballs mixed with halal food such as noodles, fish
balls and fish cakes in the same refrigerator. However, the factory is located in Garden Silk, Sungai
Petani, Kedah was invaded by the enforcement Monitoring and Enforcement Branch Halal Hub
Division, Department of Islamic Development Malaysia (JAKIM) Putrajaya.
1.2
RESEARCH OBJECTIVES
The objective of this study is:
1.2.1
To identify the strengths factor that influences the customer perception towards Halal
food industry in Malaysia.
1.2.2
To identify the weaknesses factor that influences the customer perception towards
Halal food industry in Malaysia.
1.2.3
To identify the opportunities factor that influences the customer perception towards
Halal food industry in Malaysia.
1.2.4
To identify the threats factor that influences the customer perception towards Halal
food industry in Malaysia.
1.3
RESEARCH QUESTIONS
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1.3.1
Does the strengths factor that influences the customer perception towards Halal food
industry in Malaysia?
1.3.2
Does the weaknesses factor influence the customer perception towards Halal food
1.3.3
Does the opportunities factor influence the customer perception towards Halal food
1.3.4
Does the threats factor influence the customer perception towards Halal food industry
in Malaysia?
1.4
RESEARCH SIGNIFICANT
1.4.1
To The Researcher
We can identify each problem has arisen in the Halal Food and find a solution to the problem.
This study can be a source of important information to future researchers who wish to do research on
similar topic. Future researchers may use this research as a guide as references for extending this
research by using variable and different places.
1.4.2
To The Customer
From the result of this researcher the public can find out what are strength, weakness,
opportunity and threat (SWOT) of Halal Food in Malaysia.
1.5
RESEARCH SCOPE
1.5.1
Subject
The study was made to identify who consume the Halal food in four countries including
Kuala Lumpur, Negeri Sembilan, Melaka and Johor (100 respondents).
1.5.2
Respondent

As the respondents who consume the Halal food in four countries including Kuala Lumpur, Negeri
Sembilan, Melaka and Johor (100 respondent).
1.5.3
Location
The research is conducting in four countries including Kuala Lumpur, Negeri Sembilan, Melaka and
Johor (100 respondents).
1.6
RESEARCH CONTRIBUTION
1.6.1
To The Customer
The result from this analysis exposed informationand awareness towards non-Muslim
consumer about the strengths that a company have in food industry which make them more
compete besides have produces product according to the Halal standards that has been strict.
Besides that, they also know the weaknesses that the producer have in a certain company
especially in food industry. Furthermore, consumer also can see the opportunities that the
company has in term of providing a product that has more quality but still involve in Halal
perspective and know about the way of a company overcome the threats that have been faces
by the company itself.
1.6.2
To The Company
This SWOT analysis give enough information to the company on how their
businesses especially in food industry perform in the market. Besides that, they also can
reduce or avoid the weaknesses with make an improvement in providing the product but still
in Halal Standards guidelines. Moreover, they also can see the opportunities and have a
method to get over the threats in achieving their goals follows the Syara perspective.
1.6.3
Location

Theresult from this analysis is to provide information to residents of the states that
researchers have been select about the importance of the halal food industry in their daily
lives. It is to discouraging them from making a wise choice in buying food products for their
healthy.
1.7
CONCLUSION
Today consumers want more products, with better quality, variety and convenience, whereas
producers want more access, sales increase and new lines, and retailers need a new niche market. It
has been assumed that the trouble soon to be faced by the halal market is shortages in demand. The
halal market is growing rapidly and is fast becoming a recognizable market force. It is a highly
lucrative market that has been underserved. The success of the halal food industry, in both domestic
and export markets, depends on a broad range of policy developments including those related to the
law and regulations, support services and infrastructure, such as human resource development, finance
and R&D, as well as marketing and promotional efforts. Malaysias role is not only to ensure that the
food is completely halal, but also to add value through providing services such as halal management,
logistics and finance. In other words, the country must also provide the system that would be able to
ensure its international credibility.
CHAPTER TWO
LITERATURE REVIEW
2.0
INTRODUCTION
All Muslims must observe their respective Islamic teaching and principles or better known as
Islamic Law (Shariah) in every part of their lives, most importantly, food consumption. The Shariah
demonstrates that it is crucial for Muslims to consume only Halal (permitted) food and avoid any
activities that are or will lead to Haram (prohibited) as it is extensively mentioned in the Quran:
Forbidden to you is that which dies of itself, and blood, and the flesh of swine, and that on
which any other name than that of Allah has been invoked, and the strangled (animal) and that
beaten to death, and that killed by a fall and that killed by being smitten with the horn, and that
which wild beasts have eaten, except what you slaughter, and what is sacrificed on stones set
up (for idols) and that you divide by the arrows; that is a transgression. Al-Maidah 5:3
The Malaysian Government under the Trade Description Order (The Usage Halal) 1975 define
Halal as the term used in relation to food in any form whatsoever, in the process of trade or commerce
as an aspect of trading or part of an aspect of trading for the referred to food, the term Halal,
Guaranteed Halal or Muslim Food or any other terms that may be used to indicate or may be
understood as meaning to indicate as permissible to be consumed by Muslims and allowed in their
religion for the referred to food to be consumed. Furthermore, Halal does not only concern about food
alone. In order for products or services to be deemed Halal, it must follow the Shariah principles that
states:
Does not contain any non-Halal parts or products of Haram animals or products or animals
that is not slaughtered in the name of Allah and Shariah methods

Does not contain any ingredients that are considered najis (unclean)
Safe and not harmful
Not prepared, processed or manufactured using tools or equipment that are contaminated or
used together with non-Halal or najis

Ingredients or by-products does not contain any human part
During the process of manufacturing, preparation, packaging, storage or distribution, product

must be physically separated between Halal and Haram products.
There is a wide range of products and activities that fall under Halal rule such as storage and
distribution, pharmaceutical, cosmetics, finance and tourism (Hashim et al., 2009; Wan Hassan and
Awang, 2009; Haq and Wong, 2010; Tieman, 2011; Tieman et al., 2012; Mursyidi, 2013).
2.1
CUSTOMER
A customer can be a person or business entity who receives well and services from a vendor
in exchange of payment. According to Kendaal (2006) the customer and vendor are likewise known
as client, buyer, or purchaser and seller, or supplier respectively. Business Dictionary (2010) defined
customer as a recipient of goods and services, who is at liberty from one vendor or product to another.
2.2
PERCEPTION
Perception can be defined as the process in which a person selects, arranges and interprets
stimuli. These stimuli are filtered and adjusted to become ones own world. Even though when two
persons are exposed to the same thing in the same environment, their experience may be not the same
(Schiffman and Kanuk 2010).
Perception is the process by which an individual selects, organizes and interprets information
inputs to create a meaningful picture of the world (George 2004). Perception of a service is a complex
series of judgment formed during or at the end of the experience (William and Buswell, 3003). The
perception as the perceived quality of services is the result of an evaluation process in which
customers compare their perceptions of service delivery with the expected outcome (Lovelock, 2001).
In term of social psychology, the word of perception refers to the different mental processes
that we use to form impressions of other people. This includes not just how we form these
impressions, but the different conclusions we make about other people based upon our impression
(Cherry, 2015).
Our perception of others is biased by the primacy effect, negatively bias, attribution error, and
stereotyping. Our perception of self and others is a fundamental starting point of human
communication. We reveal who we are to others by self-disclosing. To be a competent communicator,
monitor your perceptual biases, avoid snap judgments, recognize cultural differences, manage the
impressions you make with others, practice empathy, and check your perceptions of others with them
(Rothwell, 2004).
2.3
CUSTOMER PERCEPTION
Customer perception applies the concept of sensory perception to marketing and advertising.
Just as sensory perception relates to how humans perceive and process sensory stimuli through their
five senses, customer perceptions pertains to how individuals form opinions about companies and the
merchandise they offer through the purchases they make. Merchants apply customer perception theory
to determine how their customers perceive them. They also use consumer perception theory to
develop marketing and advertising strategies intended to retain current customers (Blank, 2014).
Customer service and customer perceptions are always important but mainly for small businesses. By
knowing the customers perception, how they perceive service, selection or products, prices, location
and cleanliness, customers satisfaction and ultimately the success of the business can be affected
(Solvang, 2007).Perception is one biggest hurdle when dealing with customers. The customers see
things differently based on their view point or experiences, and their perceptions become had to
change. The customers perception also dictated whether they think they are getting good customer
service (Michel, 2006).
2.4
HALAL
When the term Halal is used in relation to food in any form whatsoever, in the process of
trade or commerce as an aspect of trading for the referred to food, the term Halal, Guaranteed
Halal or Muslim Food or any other terms that may be used to indicate or may be understood as
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meaning to indicate as permissible to be consumed by Muslims and allowed in their religion for the
referred to food to be consumed, must therefore mean as the following; does not stem from or consists
of any part of or item from animals that are forbidden to Muslims by Islamic Law, or animals that
have not been slaughtered according to Islamic Law; does not contain any substances that is
considered impure in Islamic Law; is not prepared, processed or manufactured using equipment or
utensils that are not free from impurities as defined by Islamic Law (Trade Description Order,
1975). According to Regenstein et al. (2003), most food producer point of view, Halal food is a pork
free, birds of prey, and alcoholic free food for the Muslims that when labelled/presented as such to the
market, shall provide enormous economic gain.
2.5
FOOD
Edible or portable substances (usually of animal or plant origin), consisting of nourishing and
nutritive components such as carbohydrates, fats, proteins, essential mineral and vitamins, which
(when ingested and assimilated through digestion) sustains life, generates energy and provide growth,
maintenance and health of body (Business Dictionary, 2010). Food is the substances that functional
as energy, supports the body growth, conduct the metabolism and act in mechanism body protection
(Sediaoetama, 1996).
2.6
INDUSTRY
Industry can be defined as all the occupation that produces money (Tim Grasindo, 2005).
The manufacturing or technically productive enterprises in a particular field, country, region, or

economy viewed collectively, or one of these individually. A single industry is often named after its
principal product; for example, the auto industry. For statistical purposes, industries are categorized
generally according a uniform classification code such as Standard Industrial Classification (SIC)
(Business Dictionary, 2010).
2.7
STRENGTHS
Dr. Johannes Von Franz & Dr. Nikolaus Schall (2000), stated that strength is questions
about what is that your business / organization does well? Why do your customers buy from you?
What differentiates your business / organization in the market? What are the things that are going well
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for you? Strength is something that has a positive implication. It adds value, or offers your
organization a competitive advantage. Strengths include tangible assets such as available capital,
equipment, credit, established and loyal customers, existing channels of distribution, copyrighted
material, patents, information and processing systems, and other valuable resources. Besides that,
according to Standard & Quality news (Aug 2004), Malaysia has a strong reputation as an exporter
of Halal products, and this sector is expanding rapidly. By doing so it is bringing in foreign
investment, setting up Halal industrial parks and promoting links with foreign ports. Malaysia's
strength as a Halal food-producing centre is large domestic and regional Halal market
Firstly is Malaysian Halal Certification is perceived as more valid compared to nonMuslim countries.The Malaysian government has actively provides incentives or grants scheme and
other facilities with the aimed to develop its halal industries (Bidin, 2009). In the ASEAN region,
Malaysia had been the most intensively positioning themselves to be a hub for halal food in Asia and
become the pioneer of halal certification standard globally. Malaysia became the first country to have
a governing body in halal industry and its halal business blueprints provides clear goals and
guidelines for the halal industry development. Currently, Malaysia's strength position lies in its halal
certification standard that has been recognized internationally and well planned halal industrial stages.
Secondly is Reputable Halal Food Service Providers. According to Frost & Sullivan (2013)
have forecasted that Malaysias food industry will enjoy 9.5 percent growth that is valued at US$45.1
billion. The promising food industry in Malaysia will directly benefit the Halal food industry. The
Halal food potential in Malaysia is due to many reputable Halal food service providers. Several
aspects in Halal food activities, for example transportation, warehouse and storage, have JAKIM and
Standards and Industrial Research Institute of Malaysia (SIRIM) MS1900:2005 certified service
providers.
Thirdly Recognized as Model for Muslim Country. In the year 2010, total Muslim population
in Malaysia was 17.1 million, 61.4 percent from the total population. The majority of Muslim
population puts Halal food products in good stead towards becoming a Halal hub. In addition,
Malaysia is recognized by the United Nation (UN) as the best country in producing Halal products
and holds reputable image among other Muslim countries (Bohari et al., 2013). Furthermore,
Malaysia is recognized as a Muslim country and is exemplary to other Muslims countries (Rabasa,
2003). Another justification why Malaysia is a recognized Muslim country is because of the JAKIM
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Halal certification, the Halal logo. Nik Muhammad et al. (2009) stated that Malaysias strength lies
in its certification.
Lastly is Safety and quality. A study done by Jaafar et al. (2011) concluded that for Halal
food industries service provider to fulfil the growing demand, they have to be innovative in initiating
more Halal foods services such as dedicated assets, comprehensive hygienic practices, and
maintaining a high level of safety and quality. Therefore, these Halal food service providers are
exemplary to indicate that safety and quality of food service providers are also venturing into Halal
food industries.
2.8
WEAKNESSES
According to Cesarettin, TBTAK Marmara Research Centre Food Institute (2003)lack
of strong farmers organizations. Insufficient integration and cooperation between agriculture and
agro-industry, some quality and safety problems in agriculture, and need to improve the official food
control system in line with the EU legislation, rather low investments in research and development,
some technology and capacity utilization problemsof food producing SMEs.
Weakness in Halal food industry in Malaysia is very obvious. According, Shafie and
Othman (2006) indicated that there are many issues and challenges on the Halal matter. Among the
issues mentioned are the lack of consistency in the definition of Halal on the aspect of animal
slaughtering, the release of Halal logo by individual firms, use of Arabic-sounded or Islamic-signalled
brand names, the rampant use of Quran verses or Arabic characters and lack of authority enforcement
in resolving abused Halal logos. In relation to the widespread of fake or outdated Halal logo, several
cases involving misused Halal certification have been reported in the news.
A famous local bread manufacturer claimed that their products were manufactured using 100
per cent Halal oil, but after further inspections, the oil was in doubt as it was imported from Israel and
Germany (Malay Mail, 2006). In addition, the New Straits Times (2006) reported a popular local
chicken meat producer was fined RM100 million for not ensuring their products were Halal.
Moreover, there are other irresponsible parties that put up fake Halal logo and certification at their
premises even though the items sold are not Halal. These parties that exploit the Halal certification
offers food products to consumers that may contain non-Halal substances from foreign countries as
12

the product importers may not practice or understand the concept of Halal practiced in Malaysia. The
reason for the use of fake Halal certification may be the result from slow and inefficient process of
Halal certification. JAKIMs failure in providing a fast and prompt Halal certification application
process is because of the lack of full-fledged research and development unit as well as no support
from third-party experts from local universities in commissioning lab testing, analysis and on-site
inspection (Shafie and Othman, 2006).
In addition, Farouk (2006) claimed that products with Halal logo on the packaging have been
found to have pork ingredients in certain food products. The reliability and authenticity of the Halal
logo for certain products or certification bodies are found to be unreliable and spark controversies in
Halal industry. This can be supported by Rezai (2012) that consumers react positively to food
products with the JAKIM Halal logo but are less confident with other Halal logo. Besides, according
the Pluralism Project Harvard University (2003), food items considered haram include pork and
beasts of prey; further, the consumption of intoxicants such as alcohol is also haram. Islam prescribes
a method by which animals may be slaughtered with minimal suffering. At the time of slaughter, the
name of God is pronounced, symbolizing Gods role as creator and provider: such meat is considered
halal.
Other than that, the weakness of the Malaysian halal food industry has a lot to do with the
halal food producers and suppliers which a conspicuous lack of professionalism. According to Abdul
Manaf Bohari, Cheng Wei Hin, and Nurwahida Fuad in their research (2013), the halal food
producers are noted for their slow follow-up responses depicting lack of seriousness in their attitude
and a short-term business perspective. Each firm has its own brand instead of operating under a
unified Malaysian halal brand identity. The product lacks attractiveness reflecting lack of professional
knowledge and training in product development. Almost all the local halal food firms do not follow
market labelling requirements especially regarding the products shelf life. And the last one is some
halal food firms lack knowledge in the legal, social, and cultural environment of the importing
countries. They are not able to identify consumer needs accurately in terms of taste and preferences.
They enjoy little strategic and long term alliances with importers or distributors or private market
agents to promote their products. They also lack the Islamic mind set and entrepreneurial skills
(Malaysia Journal of Society and Space, 2013).
2.9
OPPORTUNITIES
Based on the institute for higher education policy (1999) opportunity is essential to the task
of building consensus about how to operationalize and measure the goals of postsecondary
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educational opportunity. Ideally, opportunity would be defined according to each students own
interests and abilities. However, in terms of public policy (particular at the federal level), it is neither
practical nor possible to approach the issue from the individual perspective. A larger lens must be
applied to formulate policies and programs that address postsecondary participation more broadly.
Firstly is the strong government support. The Halal industry had long been recognized and
supported by the Malaysian government, and numerous efforts had been implemented. The support
has been widespread from the origins right until the final consumption. Efforts involving dedicated
Halal authority, Halal abattoirs, food premises, Islamic tourism, Halal pharmaceutical and healthcare
products, Shariah compliant logistics activities, Halal market conventions and conferences are some
of the many examples initiatives by the government. In the year 1982, the Malaysia government under
the Prime Ministers Department established a Committee on Evaluation of Foods, Drinks and Goods
Utilised by Muslims which is now known as Department of Islamic Development Malaysia
(JAKIM). Presently, the roles and responsibilities of JAKIM are more than just a Halal certification
authority. JAKIMs role in the Halal industry involves educating the public and industry players by
producing the Manual Procedure of Halal Certification Malaysia as well as publishing the guidelines
for Appointment of Foreign Islamic Organization as Halal Certification Body for Products to be
exported into Malaysia. In addition, Bohari et al. (2013) indicated that Halal certification from
Malaysia is more valid compared to those from non-Muslim countries.
Secondly is increasing number of Muslim population. In case, Malaysia today is a

respectable Islamic country, progressive and highly regarded by other Islamic countries. The
development of Malaysian halal industry that successfully ventures in the international halal market,
especially in the food sector has raised the name of Malaysia. If carefully observed, the development
of halal industry in Malaysia shows a great potential in terms of increased profitability through
business opportunitiesthat can be explored in this market for halal products. Furthermore, the present
demand for halal market is expected to increase due to the increasing growth of population that
reaches two billion people with 57 countries in the world are Muslim majority. This is also based on
the increasing number of users and halal food products, which now totals four billion people (Utusan
Malaysia, 16 January 2009).Increasing demand for halal products is being seen in a number of
Muslim countries, with strong economic growth fuelling demand. Rising income levels in these key
markets have led to higher consumption rates and more opportunities for halal food producers.
Increasing number of Muslim population, the demand of food halal food product also increasing
(Ahmed,2008).
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Thirdly is Halal global trade potential. In case, the Malaysian government has identified the
food processing industry as a priority sector for industrial as well as export development. Recognizing
the potential of the halal food industry, the Malaysian Government aims to become the Global Halal
Hub by becoming a major producer of halal food and to be in the forefront of marketing, certification
and reference for halal food products. In the ASEAN region, Malaysia had been the most intensively
positioning themselves to be a hub for halal food in Asia and become the pioneer of halal certification
standard globally. Malaysia became the first country to have a governing body in halal industry and its
halal The Malaysian government has actively provides incentives or grants scheme and other facilities
with the aimed to develop its halal industries (Bidin, 2009). On the other hand, many countries in
Asia, Europe and also Australia and New Zealand had been aggressively obtained halal market
opportunities, including penetrating Indonesia as its main market. The global market for halal
products is estimated at US$580 billion a year. Global halal trade is approximately US$80 billion or
5% of total trade of agri-food products. In accordance with religious requirements, all Muslims must
eat, drink and take medicines that are halal, which is fuelling a large and growing demand for halal
products. Considering population growth rates and increasing incomes, it is estimated that in the
future, halal food may account for 20% of world trade in food products.
Lastly is demand and needs of halal food are growing up. Halal food demand has increased
tremendously in parallel with the expansion of 2.1 billion Muslim populations around the world.
According to Mariam (2010) size of halal market throughout the world is about USD 2.1 trillion and
in 2011 it is estimated that the size of halal food sector is USD 661 billion (World Halal Forum,
2011). Halal market is growing fast and has been increasing at an estimated 25% per year (Dewan
ekonomi, 2011). Halal food is becoming a lucrative business not only among Muslim but also nonMuslim countries. Besides that, Malaysian government's mission to position Malaysia as the
International Halal Food Hub at the international level has put the country on a strategic path to
become the major halal food supplier base and the global halal certification centre. Malaysia has
developed special zones to encourage more foreign and local investments to go into business for
production and processing of food products. The success of the country in leading the development of
halal system in the food sector should be fully utilized by the business and production community in
particular the small entrepreneurs who are basically involved in industrial and food
business.Furthermore, according to Houssain, K. (2010), the global Halal food industry estimated to
be worth more than $650 billion in 2009 this is a major business and the opportunities are substantial.
2.10
THREATS
15
The factors which need not necessarily be seen only from the negative side, it also can be a
challenge which may be posed by a favourable situation in the environment. According to Koschnik
(1992), a communication of a disagreeable alternative to an individual or group by one in authority or
who pretends to be. Besides that, a Soanes (2000) has stated three means of its intention to inflict
injury, damage, or other hostile action on someone, a person or thing likely to cause damage or danger
and the possibility of trouble or danger. Based on the Oxford (2002) an indication of the approach of
something unwelcome or undesirable.
Firstly is No Uniformity on Halal Standards. In case, during the World Halal Forum in
2006, the Chairman, Mr. Khairy Jamaluddin address the need for a unified Halal standards. In his
speech, he later stressed that the reason behind slow growth in the Halal industry in spite of the
demand worldwide is because that there is no uniformity on Halal standards. Besides that, according
to Halim and Salleh (2012) imply that the Halal standards and certification involves governments
intervention and to have a standard Halal certification will mean surrendering their sovereign rights.
Moreover, Iberahim et al. (2012) has states which this clearly shows the lack of standardization in
Halal certification and causes issues and difficulties throughout the Halal supply chain and logistics
activities that comprise of producers, retailers, service providers and consumers. Furthermore, without
a standard worldwide Halal certification it will be difficult to maintain the Halal integrity because
certain Halal certifying authorities are not recognized in certain countries. Shafie and Othman,
(2006) has saying the halal certification is important because, among the Muslims, the Halal logo is
perceived to be more trustworthy and important compared to those that carry International Standard of
Organization (ISO) certification.
Other than that second threats is Existence and Emergence of Haram and Doubtful
Substance. In case, according to Nakyinsige et al. (2012) halal food products, such as Halal meat,
encompasses various elements, processes and procedures for instance meat origin and species,
production system, slaughter procedure and processing method are all invisible and cannot be
certified before purchasing or during consumption point. Besides that, Fadzlillah et al. (2011) has
stated a shocking discovery were found that lard (pig fat) is widely used for domestic consumption as
well as raw material in mass production in breads and cakes. He also added that there is an upward
trend in some countries to mix pork and lard in food production for the sake of profit maximization.
16

Furthermore, a third threat is in term of product packaging which is there have no halallogo
on the packages. Moreover, Talib et al (2010), has views that plastics or microwaveable containers or
carton boxes are largely used for packing food products and are considered safe from any non-halal
substance but still the packaging materials and its origin raises doubt. Furthermore, the production of
plastic packaging uses animal-origin gelatines, and this voids the halal status as there are no scientific
ways to determine if the gelatines are from properly slaughtered animals or not. Another popular form
of packaging is the metal cans. The production of metal cans uses oil as lubricant to assists during the
production process, and the origin of the lubricant comes from animals which the Halal status could
be in doubt. According to Soong (2007), halal product packaging must consist of name or brand of the
product, minimum content in matric, name and address of manufacturer or distributor, list of
ingredients, code number representing production batch and manufactured and expiry date and Halal
logo from recognized certification agencies.
The last that can be a threat is a product labelling which that stick on the package forms as a
means for communication between manufacturer and consumer. The more information that can be
understood presented on the label, the better informed will be the consumer. According to
Underwood and Ozanne (1988) argued that the communication from manufacturer (package) to the
consumer was found to be typified by a lack of trust. They added that consumer often feel betrayed,
tricked or duped. Besides that, Davis and Wright (1992) noted that an analysis of consumer
purchasing behaviour suggests that many consumers do not appear to pay particular attention to
labelling information. They continue that the important contributor to this behaviour is due to lack of
knowledge about food additives and processing. The complexity, with which information is presented,
makes ingredients cues and other food claims difficult to be encoded in a meaningful way. White and
Parsons (2001) added, studies showed that warning labels that comes with difficult words were seen
as less safe by people regardless of their educational background. Hence the ultimate purpose of
warning that is to inform and protect consumers the possible danger of using a product, are often not
fulfilled.
2.11
TERMS OF THEORY
It is a belief about the relationship between each other some phenomenon and variable.
Theoretical frameworks provide a particular perspective, or lens, through which to examine a topic. It
17

usually come from other disciplines such as economics, the social sciences, and anthropology and are
used by historians to bring new dimensions of their topic to light. There is no right or wrong
theoretical framework to use when examining your topic since every topic can be looked at from a
number of different perspectives.However, it also is even more specific than these broad subject
approaches. Theoretical frameworks are specific theories about aspects of human existence such as
the functioning of politics, the economy, and human relations. These theories can then be applied to
the study of actual events.
2.11.1 Independent Variables

Independent Variables is a matter or factor that will influence or affect other variables. In
addition, it is also the cause of the occurrence of something else. This type of variable is the way that
allows researchers to use them to analyse or as a way to solve a problem. Therefore, the factors
involved in this study are Strengths, Weaknesses, Opportunities and Threats.
2.11.2 Dependent Variable

While Dependent Variable is something to be influenced or affected by the independent
variable either by manipulation or studies and observations conducted by the researchers. In addition,
it is also known as Variable Result (Outcome Variable) or Variable Criteria. Therefore, the study of
which researcher do is through Customer Perception towards Halal Food Industry in Malaysia.
2.11.3 Theoretical Framework Figure
18

I.V
D.V
Strengths
Weaknesses
Customer Perception
towards Halal Food
Industry in Malaysia.
Opportunities
Threats
Figure
2.12
2.10.3: Theoretical Framework
RESEARCH GAP
While the researchers conducted a study on consumer perception towards halal food industry
in Malaysia, researchers can identify some limitations when distributing questionnaires to the
respondents in the states involved. Among them, the respondent did not cooperate when distributed
questionnaire because busy with other work. In addition, respondents were also not paying attention
and interest to the questions that were asked. Next, there are some respondents also consider research
as an insurance agent when distributed questionnaires. In addition, there are those who did not
understand the questions asked and cause them only a cursory read without reading them carefully.
2.13
CONCLUSION
19
In conclusion, the success of Halal food industries does not only lies on a single entity.
Support and collaboration between all parties which include Halal food service providers, Halal
authorities, governments or government agencies, Halal institutes and universities, product or service
manufacturers and consumers are all needed to have a wholesome and successful Halal food.
Therefore, it is hoped that this study will be a reference for all, current and future stakeholders in
Halal food industries. This study is the first of its kind since there have been no dedicated study on
Halal food SWOT Analysis.
CHAPTER 3
RESEARCH METHODOLOGY
3.0
INTRODUCTION
This chapter describes the methodology used in this study. Aspects discussed in this chapter
were related to research design, sampling design, research instrument which is questionnaire, process
20

of data collection and data analysis. The gathering of primary data and the approach of the method
used in this research were also discussed.
3.1
RESEARCH DESIGN
Research design is the plan specifying the method and the procedures for collecting and
analyzing the needed information. This research attempt to identify the relationship between the
independent variables and dependent variable. This research is about consumer perception toward
halal food industry. Questioners were given to selected samples using convenience sampling method
to find out consumer perception toward halal food industry.
3.1.1
Descriptive Research
Descriptive research was undertaken to describe and measure the variables at a point in time
to answer the questions who, what, where, when, why, and how. The type of study for this research is
descriptive research. The researcher has already decide that variables that were used to investigate the
customer perception toward halal food.
3.2
SAMPLING DESIGN
In sampling design, it consist of population, sample size, sample selection, and explanation on
how the data of the study were obtained.
3.2.1
Population
Population refers to the entire group of people, events, or things of interest that the researcher
wishes to investigate. (Sekaran, 2010). The target population at Melaka, Johor, Kuala Lumpur and
Negeri Sembilan.
21
3.2.2
Sample Size
In this study, the researcher distributed the questionnaire to the customers. For this research,
the sample size chosen was 100 respondent in that area chosen. All of the respondent were selected
from the population based on convenience sampling. The sample size consists of all type of customer
in terms of monthly income, age, and type of employment.
3.2.3
Sampling Method
There are two types of sampling methods which are probability and non-probability sampling.
Probability sampling is a sampling technique where in the samples are gathered in a process that gives
all the individuals in the population equal chances of being selected. In this sampling technique, the
researcher must guarantee that every individual has an equal opportunity for selection and this can be
achieved if the researcher utilizes randomization. Non-probability sampling is a sampling technique
where the sample is gathered in a process that does not given all the individuals in the population
equal chances of being selected. The sampling method for this research is non-probability sampling
using the convenience sampling technique. Researchers often believe that they can obtain a
representative sample by using a sound judgment, which will result in saving time and money
(Black, 2010, p.225).
3.3
PROCESS OF DATA COLLECTION

Data collection is the process of preparing and collecting data in research project. The
purpose data collection is to obtain information, to keep and record, to make decision, and to share the
information. This study used a questionnaire for data collection method to obtain more accurate and
complete information about customer perception toward halal food. The respondent of this research
consists of 100 people. All data were collected by using self-administrated questionnaire. Respondents
have spent less than 10 minute to complete questionnaire. 100 sets of questionnaire to give a
customer.
3.4
RESEARCH INSTRUMENT
22
The research instrument used this for study was questionnaire. The questionnaire in used in
this study is to find out customer perception toward halal food in Malaysia.
3.4.1
Primary Data
Primary source ware first-hand accounts of an event, a life or a moment in time. They were in
their original form (diaries, letters, etc) and ware usually without explanation or interpretation.
Historian Mary Lynn Rampolla defines primary source as material produced by people or groups
directly involved in the even or topic under consideration. Primary data is the data collected from
first-hand experienced. Primary data is collected by the investigator conducting the research. It is not
published yet and is more reliable, authentic, and objective. This primary data can never be neglected
by others.
3.4.2
Secondary Data
The secondary data for this research come from many sources such as the internet, articles,
journals, and other sources. It is easier and less expensive to collect secondary data. It can be used as a
reference or guideline to make sure all the research work is done in the right way.
A)
Journal/Articles/Reports
This research used and referred to journals, articles and reports to complete the literature
review in chapter two and also other information in chapter one and chapter three. The information
gathered has helped the researcher to find out the determinants that might contribute to this study and
helped to develop the blueprint of this as well as to complete this research.
B)
Internet
23

The researcher also has surfed the internet and websites in order to find more information that
is related to the topic of research conducted. By using the internet, the researcher also could access the
journal online to find the information in order to complete research.
3.5
QUESTIONNAIRE DESIGN
The researcher also make a questionnaire. Questionnaire will be used as the research
instrument of this research. The purpose of using the questionnaire because its ensures
standardization and comparability of the data across interviews. To procedure for data collection was
through a self-administered question based on Likert Scale. The researcher should identify the right
sample and after that can contribute the data needed the questionnaire forwarded to respondent.
i)
Checklist
The design was used in Section A, which is about personal data of the customer. The
respondents must choose only one answer from this question. Example:
Gender
Male ( )
ii)
Female ( )
Close-ended question
A close-ended question is a form of question which can normally be answered using

the Likert scale type. Close-ended question can be used for clarifying facts,
verifying information already given or controlling conversation among other things.
iii)
Likert-scale question
This type of question was designed to identify how strong subjects or respondents
agree or disagree with the statement on five-point scale.
24

STRONGLY
DISAGREE
MEDIUM
AGREE
STRONGLY
DISAGREE
AGREE
3.6
DATA ANALYSIS
The analysis and interpretation of data were done using descriptive and inferential statistics.
Descriptive statistics involve the description and summary of data, while inferential statistics involve
the inferences that are drawn from the results. Ultimately, the result of statistical investigation can be
represented graphically by means of bar chart or pie chart. In this instance, bar charts and pie charts
were used to compare value across categories.
Section
A
B
B
B
B
3.7
Variable
Demographic Profile
Strengths
Weaknesses
Opportunities
Threats
Number Of Question
1-7
1-5
1-5
1-5
1-5
Types Of Analysis
Frequency
Analysis of mean
Analysis of mean
Analysis of mean
Analysis of mean
VALIDITY TESTING
3.7.1
Content Validity
Table 3.7.1: Reliability Statistics
Cronbach's Alpha
N of Items
.917
20
Item-Total Statistics
Scale Mean if Item
Scale Variance if Item
Corrected Item-Total
Cronbach's Alpha if
Deleted
Deleted
Correlation
Item Deleted
B1
74.44
73.279
.119
.920
B2
73.85
67.927
.561
.913
25

B3
73.49
68.939
.430
.916
B4
73.86
66.808
.632
.911
CA1
74.23
69.694
.475
.915
CA2
74.21
68.915
.410
.916
CA3
74.08
68.377
.425
.916
CA4
73.84
65.732
.629
.911
CB1
73.85
65.462
.747
.908
CB2
73.72
65.557
.728
.909
CB3
73.62
66.016
.690
.910
CB4
73.71
65.198
.707
.909
CC1
73.55
67.159
.552
.913
CC2
73.48
67.000
.647
.911
CC3
73.49
66.939
.658
.911
CC4
73.46
66.958
.612
.912
CD1
73.76
66.164
.632
.911
CD2
73.93
67.379
.563
.913
CD3
74.04
68.241
.548
.913
CD4
73.69
67.691
.553
.913
Based on the Cronbach's Alpha for the whole reliability Test variables, found the Cronbach's
alpha was 0.917. It shows the overall Cronbach's Alpha value is excellence.However, the Cronbach's
alpha can be improved by referring to the "Cronbach's Alpha if item deleted", found that the value of
CB1 shows a higher value than the actual value of Cronbach's Alpha, the item can be dropped. This
value is 0.920> 0.917 actual Cronbach's Alpha.
3.8
CONCLUSION
Chapter three discussed the primary data and secondary data which are used to prepare and
construct the questionnaire. The research instrument used is questionnaire. The questionnaire was
constructed based on research objectives which were addressed in literature review in chapter two. In
addition, the research instrument consists of close-ended questions. It comprises two section which
are sections A and section B. This chapter also deals with the research design used in this study
26

besides other aspects like sampling design, sampling methods, process of data collection, research
tools, and types of data analysis.
CHAPTER FOUR
DATA ANALYSIS
4.0
INTRODUCTION
This chapter describes all the information that has been analysed data from a study
questionnaire which was circulated earlier to consumers in the states which have researchers chose
Kuala Lumpur, Negeri Sembilan, Malacca and Johor. This questionnaire seeks to obtain information
about consumer perception towards halal food industry in Malaysia.
27
In addition, there are three parts in the questionnaire form to be filled in by the respondents,
namely sections A, B, and C. This is where part A is relevant to the respondent demographic
information including gender, status, age, race, religion, occupation, income, While section B
describes the four independent variables (IV) which influence user perceptions of strengths,
weaknesses, opportunities and threats are also found in this study. Next, the C detailing each item is
independent variables.
In addition, after the study the researchers will complete the encoding (coding) into SPSS by
using the forms filled in by each respondent. Next, the researchers will provide the SPSS output,
including testing of the mean value for each IV which researchers have examined.
4.1
DEMOGRAPHICS PROFILES OF THE RESPONDENTS

Demographic profile of the respondents consists of gender, age, race, marital status, religion,
occupation and income. These data were collected from the respondents who used to visit the states
that researchers choose. Each question from the questionnaire was analysed to find out whether the
research objectives are achieved. The researcher uses the tables and pie charts to show the
demographics profiles and preferences of 100 respondents who were selected for this research.
4.1.1
Gender
Table 4.1.1: Frequency of Distribution of Respondents by Gender
Frequency
47
MALE
28
Percent
47.0

FEMALE
Total
53
100
53.0
100.0
GENDER
MALE
FEMALE
47%
53%
Figure 4.1.1: Frequency of Distribution of Respondents by Gender
This study shows that 47 males and 53 females were chosen to answer the questionnaires.
Table 4.1.1 and Figure 4.1.1 below show the frequency of gender in this study where there were 53
females which comprise of 53% whereas the male were 47 people which comprise of 47%. Most of
the respondents are females because the respondents are randomly selected by the conductor without
concerning the difference of gender.
4.1.2
Marital Status
Table 4.1.2: Frequency of Distribution of Respondents by Marital Status

Frequency
40
52
8
100
SINGLE
MARRIED
DIVORCED
Total
29
Percent
40.0
52.0
8.0
100.0
MARITAL STATUS
SINGLE
MARRIED
DIVORCED
8
40
52
Figure 4.1.2: Frequency of Distribution of Respondents by Marital Status
Table 4.1.2 and Figure 4.1.2 show the respondents marital status that has beenanalysed from
the data obtained from the questionnaires. According to the survey that 40% 52% 8% Marital Status
Single, Married, Divorced are conducted, 40% or 40 respondents are singles, 52% or 52 respondents
are married whereas 8% or 8 respondents are in divorced group of marital status. This is because, they
are more concern about healthiness to their family.
4.1.3
Age
Table 4.1.3: Frequency of Distribution of Respondents by Age
Frequency
42
34
24
100
21-30 YEARS
31-40 YEARS
41 YEARS AND ABOVE
Total
30
Percent
42.0
34.0
24.0
100.0
AGE
21-30 YEARS
31-40 YEARS
41 YEARS AND ABOVE
24%
42%
34%
Figure 4.1.3: Frequency of Distribution of Respondents by Age
Table 4.1.3 and the Figure 4.1.3 shows the age distribution of the respondents.From the
results shown below, majority of the respondent was between 21 to 30 years old with the percentage
of 42%. This is followed by the second highest frequency which is 34% of respondents who are
between 31 to 40 years old. The lowest frequency was only 24% of respondents are 41 years and
above. The majority of respondents age was between 21 to 30 years old because at this age, they are
more searching of the Halal food.
4.1.4
Race
Table 4.1.4: Frequency of Distribution of Respondents by Race
MALAY
CHINESE
INDIAN
31
Frequency
Percent
32
24
25
32.0
24.0
25.0

OTHERS
Total
19
100
19.0
100.0
RACE
MALAY
CHINESE
INDIAN
19%
OTHERS
32%
25%
24%
Figure 4.1.4: Frequency of Distribution of Respondents by Race
The table 4.1.4 and Figure 4.1.4 show that majority of respondent are Malay which comprise
of 32% or 32 respondents. The second highest of respondent race was Indian which comprise of 25%
or 25respondents. Thirdly respondents that are Chinese which comprise of 24% or 24 respondents.
Lastly is the Others respondents which comprise 19% or 19 respondents. In case, the Malay
respondents is highest percentage because they have awareness about consume Halal food in daily
lives.
4.1.5
Religion
Table 4.1.5: Frequency of Distribution of Respondents by Religion
Frequency
32
19
25
24
100
ISLAM
CHRISTIAN
HINDU
BUDDHIST
Total
32
Percent
58.0
12.0
16.0
14.0
100.0
RELIGION
ISLAM
CHRISTIAN
24%
HINDU
BUDDHIST
32%
25%
19%
Figure 4.1.5: Frequency of Distribution of Respondents by Religion
The table 4.1.5 and Figure 4.1.5 shows that majority of respondent are Islam which comprise
of 32% or 32 respondents. The second highest of respondent race was Hindu which comprise of 25%
or 25respondents. Thirdly respondents that are Buddhist which comprise of 24% or 24 respondents.
Lastly is the Christian respondents which comprise 19% or 19 respondents. In case, the Islam
respondents is highest percentage because they know the Halal and Haram food.
4.1.6
Occupation
Table 4.1.6: Frequency of Distribution of Respondents by Occupation
Frequency
34
44
22
100
GOVERNMENT SECTOR
PRIVATE SECTOR
OTHERS
Total
33
Percent
34.0
44.0
22.0
100.0
OCCUPATION
GOVERNMENT SECTOR
PRIVATE SECTOR
22%
OTHERS
34%
44%
Figure 4.1.6: Frequency of Distribution of Respondents by Occupation
The table 4.1.6 and Figure 4.1.6 showsthat the highest occupation are Private Sector which
comprise of 44% or 44 respondents whereas the second occupation is Government Sector which 34%
or 34respondents. Lastly, there is 22% or 22 respondents are from Others.
4.1.7
Income
Table 4.1.7: Frequency of Distribution of Respondents by Income
Frequency
42
33
25
100
RM1000-2000
RM2001-3000
RM 3001 AND ABOVE
Total
34
Percent
42.0
33.0
25.0
100.0
INCOME
RM1000-2000
RM2001-3000
RM 3001 AND ABOVE
25%
42%
33%
Figure 4.1.7: Frequency of Distribution of Respondents by Income
The Table 4.1.7 and Figure 4.1.7 shows the highest distribution of monthly income was RM
1000 to RM 2000 which comprise of 42%. The second highest distribution of monthly income was
RM 2001 to RM 3000 where it comprises of 33% whereas the distribution of monthly income that
RM 3001 and above is 25%.
4.2
ANALYSIS MEAN
In this section the researcher will show the data related to the factors affects the Customer
Perception towards Halal Food Industry in Malaysia. The factors include Strengths, Weaknesses,
Opportunities and Threats. The table of mean will show each factor in the questionnaire.
35

4.2.1
NO.
B1
B2
B3
B4
Dependent Variable: Customer Perception towards Halal Food Industry in

Malaysia
DESCRIPTION
The strengths can make Halal food industry more compete.
Halal firms still have not used sophisticated technology.
The ways to operationalize and measure the goals.
Cause damage or danger and the possibility of trouble.
MEAN
3.26
3.85
4.21
3.84
RANK
4
2
1
3
The table 4.2.1 above shows the average mean value for the dependent variable for the
Customer Perception towards Halal Food Industry in Malaysia is 3.79. Since the average mean for
the dependent variable is more than 3.50, so the average mean value for the Customer
Perception towards Halal Food Industry in Malaysia are accepted. The highest rank was show on
B3:The ways to operationalize and measure the goalswith the mean value of 4.21 whereas
second rank was show on B2: Halal firms still have not used sophisticated technology with the
mean value of 3.85. The third rank was show on B4: Cause damage or danger and the
possibility of trouble with the mean value of 3.84 whereas the lowest rank was show on B1:
The strengths can make Halal food industry more compete with the mean value of 3.26.
4.2.2
Independent Variable
4.2.2.1 Strengths
Table 4.2.2.1: Mean Value of Strengths Factor
NO.
CA
DESCRIPTION
Malaysian Halal Certification is perceived as more valid compared
to non-Muslim country.
36
MEAN
RANK
3.47

CA
High reputable Halal food service provides.
2
CA
Recognised as model for Muslim country.
3
CA
Maintaining high level of safety and quality.
3.49
3.62
3.86
Overall Average Mean: 3.61
The Table 4.3.1 above show the average mean value of strengths factor is 3.61. Since the
mean average is more than 3.50, the average mean of strengths factor is accepted. From the Table
4.3.1, the highest rank was show on CA4: Maintaining high level of safety and quality with the
mean value of 3.86 whereas second rank was show on CA3: Recognised as model for Muslim
country with the mean value of 3.62. The third rank was show on CA2: High reputable Halal food
service provideswith the mean value of 3.49 whereas the lowest rank was show on CA4: Malaysian
Halal Certification is perceived as more valid compared to non-Muslim country with the mean value
of 3.47.
4.2.2.2 Weaknesses
Table 4.2.2.2: Mean Value of Weaknesses Factor
NO.
CB1
CB2
CB3
CB4
DESCRIPTION
Some of the Halal logo is Fake.
Have non-Halal ingredient in certain Halal product.
Company have conspicuous lack of professionalism.
Lack knowledge in the legal, social and cultural environment.
MEAN
3.85
3.98
4.08
3.99
RANK
4
3
1
2
Table 4.3.3 above show average mean value of weaknesses factor is 3.98. As the average
mean of weaknesses was exceeds 3.50, this means that the average mean value is accepted. The
highest rank was show on CB3: Company have conspicuous lack of professionalism with mean
value of 4.08 whereas second rank was show on CB4: Lack knowledge in the legal, social and
cultural environmentwith the mean value of 3.99. The third rank was show on CB2: Have non-Halal
37

ingredient in certain Halal productwith the mean value of 3.98 whereas the lowest rank was show on
CB1: Some of the Halal logo is Fakewith the mean value of 3.85.
4.2.2.3 Opportunities
Table 4.2.2.3: Mean Value for Opportunities Factor
NO.
CC1
CC2
CC3
CC4
DESCRIPTION
Strong government support for Halal development.
Muslim population are growing in country.
Halal food has a global trade potential.
Demand and needs of Halal food are growing up.
MEAN
4.15
4.22
4.21
4.24
RANK
4
2
3
1
Table 4.3.3 above show average mean value of opportunities factor are 4.21. As the average
mean of opportunities was exceeds 3.50, this means that the average mean value is accepted. The
highest rank was show on CC4: Demand and needs of Halal food are growing up with mean value
of 4.24 whereas second rank was show on CC2: Muslim population are growing in country with the
mean value of 4.22. The third rank was show on CC3: Halal food has a global trade potentialwith
the mean value of 4.21 whereas the lowest rank was show on CA1: Strong government support for
Halal developmentwith the mean value of 4.15.
4.2.2.4 Threats
Table 4.2.2.4: Mean Value for Threats Factor
NO.
CD1
CD2
CD3
CD4
DESCRIPTION
No uniformity on Halal standards.
Existence and emergence of Haram and doubtful substance.
Do not have Halal logo on the packages.
The product labelling is not stated more details.

38
MEAN
3.94
3.77
3.66
4.01
RANK
2
3
4
1
Based on table above shows that the average means value for threats Factor is 3.85 where it
exceeds 3.50. As it is more than 3.50, the average mean value for threats Factor is accepted. The
highest rank was show on CD4: The product labelling is not stated more details with the mean value
of 4.01 whereas second rank was show on CD1: No uniformity on Halal standardswith the mean
value of 3.94. The third rank was show on CD2: Existence and emergence of Haram and doubtful
substance with the mean value of 3.77 whereas the lowest rank was show on CD3: Do not have
Halal logo on the packageswith the mean value of 3.66.
4.3
OVERALL AVERAGE MEAN VALUE

Table 4.3: Overall Average Mean Value
NO.
1
2
3
4
DESCRIPTION
MEAN
3.61
3.98
4.21
3.85
Strengths
Weaknesses
Opportunities
Threats
RANK
4
2
1
3
The table 4.4 shows overall average mean value on factors that affect the Customer
Perception towards Halal Food Industry in Malaysia. The highest average mean value from all factors
are opportunities factor with mean of 4.21, which shows that many respondents agreed that
opportunities play an important role in Customer Perception towards Halal food industry in Malaysia.
This is followed by average mean value of weaknesses factor with the value of 3.98, threats factor
with the value of 3.85 and lastly Strengths factor with average mean value of 3.61.
4.4
CONCLUSION
Based on the discussion above, it is obvious that the researchers made an attempt to ascertain
the extent to which a combination of the independent variables would be predict the consumer
perception. From the point of view of respondents, opportunities factor is the most influential factor
39

follow by weaknesses, threats and strengths. Besides, all factors are satisfied by the respondent where
they having a positive view or experience towards Halal Food Industry in Malaysia. Therefore, all the
objectives are estimated.
CHAPTER 5
RESEARCH DISCUSSION AND CONTRIBUTIONS
5.0
INTRODUCTION
This chapter discusses the overall conclusion about research project. The researcher also
provides recommendations that are related to this research and for future researchers. The researcher
will discuss about the conclusion on factors that affect the customer perception towards Halal food
40

industry in Malaysia. The variables included in this research are strengths, weaknesses, opportunities
and threats. Based on the analysis done on the data gathered from the 100 respondents, the result
shows positive relationship because the entire factor average mean is more than 3.50. Based on Table
4.4, in terms of factors that affect the customer perception towards Halal food industry in Malaysia,
the first rank opportunities, followed by weaknesses, threats and strengths.
5.1
DISCUSSION
5.1.1
Opportunities
Overall average mean value for opportunities factor is 4.21 where it is more than 3.50 which
shows that respondents are agree to the factor. We can conclude that the opportunities factor in this
study is accepted as one of the factor which can influence the customer perception towards Halal food
industry in Malaysia.
According to analysis that made in chapter 4, it shows that respondent most agree to
Demand and needs of Halal food are growing up with the mean of 4.24 which can influence the
customer perception towards Halal food industry in Malaysia. According to Mariam (2010) size of
halal market throughout the world is about USD 2.1 trillion and in 2011 it is estimated that the size of
halal food sector is USD 661 billion (World Halal Forum, 2011). Halal market is growing fast and has
been increasing at an estimated 25% per year (Dewan ekonomi, 2011). Halal food is becoming a
lucrative business not only among Muslim but also non-Muslim countries. Besides that, Malaysian
government's mission to position Malaysia as the International Halal Food Hub at the international
level has put the country on a strategic path to become the major halal food supplier base and the
global halal certification centre. Malaysia has developed special zones to encourage more foreign and
local investments to go into business for production and processing of food products. The success of
the country in leading the development of halal system in the food sector should be fully utilized by
the business and production community in particular the small entrepreneurs who are basically
involved in industrial and food business. Therefore, our objective for this study is achieved.
5.1.2
Weaknesses
Overall average mean value for weaknesses factor is 3.98 where it is more than 3.50 which
shows that respondents are agree to the factor. We can conclude that the weaknesses factor in this
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study is accepted as one of the factor which can influence the customer perception towards Halal food
industry in Malaysia.
Company have conspicuous lack of professionalism with the mean of 4.08 which can influence the
customer perception towards Halal food industry in Malaysia. According, Abdul Manaf Bohari,
Cheng Wei Hin, and Nurwahida Fuad in their research (2013), the halal food producers are noted
for their slow follow-up responses depicting lack of seriousness in their attitude and a short-term
business perspective. Each firm has its own brand instead of operating under a unified Malaysian
halal brand identity. The products lacks attractiveness reflecting lack of professional knowledge and
training in product development. Almost all the local halal food firms do not follow market labelling
requirements especially regarding the products shelf life. And the last one is some halal food firms
lack knowledge in the legal, social, and cultural environment of the importing countries. They are not
able to identify consumer needs accurately in terms of taste and preferences. They enjoy little
strategic and long term alliances with importers or distributors or private market agents to promote
their products.
5.1.3
Threats
Overall average mean value for threats factor is 3.85 where it is more than 3.50 which show
that respondent are agree with the factor. We can conclude that the threats factor in this study is
accepted as one of the factor which can influence the customer perception towards Halal food industry
in Malaysia.
According to analysis that made in chapter 4, the researchers have found more respondent are
agree to the product labelling is not stated more details with the mean of 4.01 which can influence
the customer perception towards Halal food industry in Malaysia. The result is supported by
Underwood and Ozanne (1988) argued that the communication from manufacturer (package) to the
consumer was found to be typified by a lack of trust. They added that consumer often feel betrayed,
42

tricked or duped. Besides that, Davis and Wright (1992) noted that an analysis of consumer
purchasing behaviour suggests that many consumers do not appear to pay particular attention to
labelling information. They continue that the important contributor to this behaviour is due to lack of
knowledge about food additives and processing. The complexity, with which information is presented,
makes ingredients cues and other food claims difficult to be encoded in a meaningful way. White and
Parsons (2001) added, studies showed that warning labels that comes with difficult words were seen
as less safe by people regardless of their educational background. Hence the ultimate purpose of
warning that is to inform and protect consumers the possible danger of using a product, are often not
fulfilled. Therefore, our objective for this study is achieved.
5.1.4
Strengths
Overall average mean value for strength factor is 3.61 where it is more than 3.50 which shows
that respondents are agree to the factor. We can conclude that the strength factor in this study is
accepted as one of the factor which can influence the customer perception towards Halal food industry
in Malaysia.
Maintaining high level of safety and quality with the mean of 3.86 which can influence the
customer perception towards Halal food industry in Malaysia. According to Jaafar (2011), concluded
that for Halal food industries service provider to fulfil the growing demand, they have to be
innovative in initiating more Halal foods services such as dedicated assets, comprehensive hygienic
practices, and maintaining a high level of safety and quality. Therefore, these Halal food service
providers are exemplary to indicate that safety and quality of food service providers are also venturing
into Halal food industries. Therefore, our objective for this study is achieved.
5.2
SUGGESTION
According to the research that had made, there are four independent variables which are
opportunities, weaknesses, threats and strengths.
5.2.1
Opportunities
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The lowest mean value for independent variable question is Strong government support for
Halal development with the mean value of 4.15. In case, respondents do not agree with it because
they think government do not give commitment and take responsibility in Halal food industry
development. Therefore, the government have to do some exhibition about it such as Malaysia
International Halal Showcase (MIHAS) by World Halal Summit, Halal Fiesta (HalFiest) and Malaysia
Agriculture, Horticulture & Agrotourism (MAHA).
In case, the government have Efforts involving dedicated Halal authority, Halal abattoirs,
food premises, Islamic tourism, Halal pharmaceutical and healthcare products, Shariah compliant
logistics activities, Halal market conventions and conferences are some of the many examples
initiatives by the government. In the year 1982, the Malaysia government under the Prime Ministers
Department established a Committee on Evaluation of Foods, Drinks and Goods Utilised by
Muslims which is now known as Department of Islamic Development Malaysia (JAKIM).
Presently, the roles and responsibilities of JAKIM are more than just a Halal certification authority.
JAKIMs role in the Halal industry involves educating the public and industry players by producing
the Manual Procedure of Halal Certification Malaysia as well as publishing the guidelines for
Appointment of Foreign Islamic Organization as Halal Certification Body for Products to be exported
into Malaysia. In addition, Bohari et al. (2013) indicated that Halal certification from Malaysia is
more valid compared to those from non-Muslim countries.
5.2.2
Weaknesses
The lowest mean value for independent variable question is some of the Halal logo is fake
with mean value of 3.85. There have some of the Halal logo that fake. The owner use this Halal logo
without permission or without qualification from the JAKIM. They use it to make profits to their
business which is can attract the Muslim people to buy from their businesses. Therefore, the
authorities must act more decisively and carry out regular monitoring so that no more products using
fake halal logo. Additionally, in order to avoid a confusion on the consumer part, all the supermarkets,
restaurant have to put JAKIM valid halal logo banner.According to Shafie and Othman (2006), the
reason for the use of fake Halal certification may be the result from slow and inefficient process of
Halal certification. JAKIMs failure in providing a fast and prompt Halal certification application
process is because of the lack of full-fledged research and development unit as well as no support
44

from third-party experts from local universities in commissioning lab testing, analysis and on-site
inspection.
5.2.3
Threats
The lowest mean value for independent variable question is Do not have Halal logo on the
packages with mean value of 3.66. It means, the respondent think the halal logo is important which
can influence the customer to buy halal product. Therefore, the manufacturer must be put the Halal
logo on the packages before market it. This is because to avoid a doubtful of the customer towards
that product.
According to Talib et al (2010), has views that plastics or microwaveable containers or carton
boxes are largely used for packing food products and are considered safe from any non-halal
substance but still the packaging materials and its origin raises doubt. Furthermore, the production of
plastic packaging uses animal-origin gelatines, and this voids the halal status as there are no scientific
ways to determine if the gelatines are from properly slaughtered animals or not. Another popular form
of packaging is the metal cans. The production of metal cans uses oil as lubricant to assists during the
production process, and the origin of the lubricant comes from animals which the Halal status could
be in doubt. Besides that, according to Soong (2007), halal product packaging must consist of name or
brand of the product, minimum content in matric, name and address of manufacturer or distributor, list
of ingredients, code number representing production batch and manufactured and expiry date and
Halal logo from recognized certification agencies.
5.2.4
Strengths
The lowest mean value for independent variable question is Malaysian Halal certification is
perceived as more valid compared to non-Muslim country with the mean value of 3.47. There will be
have process that must be followed to get the Halal certification for the company. Some people make
an expectation that money can buy Halal certificate and simply use it in their businesses. Therefore,
the government especially JAKIM must take an action to an individual or company that abuses or take
the easy way out in the Halal certificate.According to Bidin (2009), the Malaysian government has
actively provides incentives or grants scheme and other facilities with the aimed to develop its halal
industries. In the ASEAN region, Malaysia had been the most intensively positioning themselves to be
a hub for halal food in Asia and become the pioneer of halal certification standard globally. Malaysia
45

became the first country to have a governing body in halal industry and its halal business blueprints
provides clear goals and guidelines for the halal industry development.
5.3
CONTRIBUTIONS
5.3.1
To The Customer
The result from this analysis exposed information and awareness towards non-Muslim
consumer about the strengths that a company have in food industry which make them more compete
besides have produces product according to the Halal standards that has been strict. Besides that, they
also know the weaknesses that the producer have in a certain company especially in food industry.
Furthermore, consumer also can see the opportunities that the company have in term of providing a
product that has more quality but still involve in Halal perspective and know about the way of a
company overcome the threats that have been faces by the company itself.
5.3.2
To The Company
This SWOT analysis give enough information to the company on how their businesses
especially in food industry perform in the market. Besides that, they also can reduce or avoid the
weaknesses with make an improvement in providing the product but still in Halal Standards
guidelines. Moreover, they also can see the opportunities and have a method to get over the threats in
achieving their goals follows the Syara perspective. Other than that, the SWOT analysis can make the
company increasing the efficiency and effectiveness of the business in terms of food processing
independent of dubious ingredients and always follow the standards that be appointed. Therefore it
will make the image of the company better known and protected from rogue elements.
5.3.3
Location
The result from this analysis is to provide information to residents of the states that
researchers have been select about the importance of the halal food industry in their daily lives. It is to
discouraging them from making a wise choice in buying food products for their healthy.Additionally,
the SWOT analysis is to make the states that researchers have chosen to focus more on priorities Halal
food industry because the majority population in these countries are Islam.
46
5.4
CONCLUSION
Researcher could conclude that all the factors that had been used in this study is important. In
another words, all independent variables that used are related to the increase rate of domestic tourism
in Malaysia. From the point of view of respondents, marketing factors is the most influential factors
follow by culture, economy and service. Besides, all factors are satisfied by the respondent where they
having a positive view or experience towards Malacca. Therefore, all the objectives are estimated.
5.5
OVERALL CONCLUSION
From the overall conclusion, the objective is achieved and shows that the four factors are
importance in affecting the increase rate of domestic tourism in Malaysia, Case Study: Malacca. From
the summary findings, it shows that there is positive effect between marketing, culture, economy, and
service.
CHAPTER 6
IMPLICATIONS AND LIMITATION
6.0
INTRODUCTION
This chapter discusses the result of the research on the implication and limitation. The
scope of discussion centers on the implication and limitation of this research. This chapter
47

focuses on the implication of the research to the consumers towards the Halal food in four
states that the researchers have been chosen.
6.1
IMPLICATION FOR THE CUSTOMERS

The consumers have to be clear about what of the Halal food is. It is important for
them especially the non-Muslim consumers on their view about Halal food industry.
Throughout the SWOT analysis, they can know the overall information about the Halal food.
In strength, the Halal food shows that the certification of the Halal food is valid especially in
Muslim country. So, any of the consumers can eat the food without any confusion. However,
it is also shows the weakness of the Halal food whereas the using of the Halal logo was being
fact. So, it can give impact for the consumers especially the Muslim consumers which is can
hesitate the confident of the consumers to eat the food. So, this kind of problem, JAKIM
especially should be more alert and take the seriously step to solve this problem in order to
get the confident consumers back.
The next one is opportunity, whereas the Halal food industry has the strong supported
from the government. So, when the supported from the government, more Halal food has can
be produced. Last one that can be impact to the consumers in term of SWOT analysis is
threats. In this last part, the existence and emergence of Haram and doubtful substance for
surely can give the big implication to the consumers. Nowadays as we can see at certain
supermarket, the seller has sold the Haram and Halal food in one place or line. So, the
consumers especially the Muslim cannot buy the food as well as reduce their trustworthy
towards the Halal food.
6.2
LIMITATION OF THE STUDY

While the researchers conducted a study on consumer perception towards halal food industry
in Malaysia, researchers can identify some limitations when distributing questionnaires to the
respondents in the states involved. Among them, the respondent did not cooperate when distributed
questionnaire because busy with other work. In addition, respondents were also not paying attention
48

and interest to the questions that were asked. Next, there are some respondents also consider research
as an insurance agent when distributed questionnaires. In addition, there are those who did not
understand the questions asked and cause them only a cursory read without reading them carefully.
6.3
CONCLUSION
SWOT analysis being help the consumers in order to know more about the Halal food
industry as well. The researcher has felt that there has to be a better system in order to make
the consumers more clearly to understand what the Halal food is. So, the government as well
as JAKIM should be more corporate in order to make the consumers understand by doing
several activities such as campaign, talk, forum and others that related to the Halal food
industry.
CHAPTER 7
FUTURE RESEARCH AND CONCLUSION
7.0
INTRODUCTION
49

This chapter discusses the future research and conclusion. The scope of discussion
centers on future research and conclusion of this research. This chapter focuses on the future
research and conclusion for the researcher.
7.1
FUTURE RESEARCH
Future researchers can use the same topic in different of the independent variable.
Other than that, the respondents should be more than 100 to ensure more accurate results.
7.2
OVERALL CONCLUSION
In conclusion, the overall average mean value is high which is shown the consumers
get more information and knowledge toward the SWOT analysis about the Halal food
industry. But, some consumers were not satisfied with the SWOT analysis in term of
weaknesses and threat. So, the government and JAKIM should corporate together to solve the
problem that faces by the consumers and also the Halal food can be merging into the market.
50

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OPERATION MANAGEMENT | BJMP 2033

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Firstly is Malaysian Halal certification is perceived as more valid compared to non-Muslim

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that is not slaughtered in the name of Allah and Shariah methods

used together with non-Halal or najis

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During the process of manufacturing, preparation, packaging, storage or distribution, product

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The manufacturing or technically productive enterprises in a particular field, country, region, or

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Secondly is increasing number of Muslim population. In case, Malaysia today is a

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2.11.1 Independent Variables

2.11.2 Dependent Variable

2.11.3 Theoretical Framework Figure

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2.10.3: Theoretical Framework

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how the data of the study were obtained.

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PROCESS OF DATA COLLECTION

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A close-ended question is a form of question which can normally be answered using

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Scale Variance if Item

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DEMOGRAPHICS PROFILES OF THE RESPONDENTS

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Figure 4.1.1: Frequency of Distribution of Respondents by Gender

Table 4.1.2: Frequency of Distribution of Respondents by Marital Status

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Figure 4.1.2: Frequency of Distribution of Respondents by Marital Status

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41 YEARS AND ABOVE

Figure 4.1.3: Frequency of Distribution of Respondents by Age

Table 4.1.4: Frequency of Distribution of Respondents by Race

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Figure 4.1.4: Frequency of Distribution of Respondents by Race

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Figure 4.1.5: Frequency of Distribution of Respondents by Religion

Table 4.1.6: Frequency of Distribution of Respondents by Occupation

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