Western Style Fast Food In China

Western Style Fast Food In China In this section, we first apply Five Forces model to investigate all kinds of competition facing western fast food industry in China which contains competition between western fast food enterprises and Chinese fast food enterprises. The markets of tableware and beverage are both competitive, and the purchasing rate of raw materials is relatively low compared with other materials, therefore these suppliers are poor at capability of pricing. As for other raw materials like chicken and potatoes and so on, since that the prices of agricultural products have been rising in recent years, suppliers of these materials gain more power on pricing. (2)Competitors: the other western fast food brands in China are McDonalds and so on. All these brands enjoy their own reputation, and are operated in chain. The food and service they offer are of high quality. Particularly, they all expect huge potentials in fast food industry in China, so they are willing to invest larger amount money opening more restaurants in China. Therefore the competition between them tends to be more intensive in the future. (3)Consumers: at present, if one Chinese consumer is willing to buy western fast food it means that he (or she) has already accepted the price. Generally, the bargaining power of one single consumer in western fast food industry is weak. But it does not hold for those group consumers. For now, most western fast food enterprises focus on discrete consumer, and if they want to occupy a fraction of group consumers market, They should also apply flexible pricing strategies and enhance their bargaining power with consumers. (4)Substitution: in recent years, more and more Chinese begin to pay attention on diet health, which promotes the development of Chinese fast food. The reasonable price and rich varieties of Chinese fast food has press the expansion of western fast food in China. (5)Potential entrants: relatively speaking, the entry barriers of western fast food are high. Because these western fast food requires large funds input, great brands reputation, economies of scale and so on. But we should also predict that with capability of investing strengthened and management improved for Chinese enterprises, they probably enter western fast food market and enjoy great success in it. Through Five Forces mode we can find that western fast food industry in China is still of great profitable potential, and the competition between western fast food enterprises and Chinese fast food enterprises will intensify, which implies that both of western fast food enterprises and Chinese fast food enterprises should cultivate their own competitiveness 4.2Brief introduction about KFC in China As one of the most popular western style fast food brands, KFC(Kentucky Fried Chicken) belongs to the worlds largest food group -Yum food group . This largest food group includes about 30,000 KFC Dining-room, pizza hut and TacoBell restaurants which are distributed in more than 100 countries and regions of the world. On November12, 1987, KFC entered into Beijing, which is the capital city of China. After that, more KFC chain restaurants have been established in more cities such as Shanghai, Guangzhou, Hangzhou, Nanjing, Xiamen etc. And even people who live in those small towns can also have the access to western style fast food. Until now, there are about two thousand one hundred KFC chain stores distributed around almost hour hundred and fifty cities except Tibet. KFC has been the largest fast food chain restaurant in China at the greatest speed of expansion(www.kfc.com.cn). 4.3 Core competitiveness of KFC in China During over twenty years development in China, KFC has been always and constantly integrated and taken advantage of limited resources and capability in China, and have gradually cultivated its unique abilities during the business operation, which are not easily imitated by its rivals but also could bring it extra profits. Abilities like that are named core competitiveness of KFC by our researchers. This kind of competitiveness can make one or several business operations are of first rate in the world or of greater advantages over its competitors(Aaker,1989). (1) Standardization of management. The research by KFC on their standardization management is amazing. In order to ensure that people around the whole world can enjoy the food of exactly same taste, KFC investigated in detail into every single processing program to obtain corresponding quantitative standard. There is no doubt that standardization is KFCs core knowledge competitive ability(Stephen,1992). (2). Localization. KFCs franchise mode is quite special, with unique Chinese characteristics. Its not starting from zero joining way is acceptable by those Chinese investors. In addition, KFC applied material resources integration into its management. From the very day when it entered into China, KFC has been determined to provide food which is right for Chinese taste. For now, KFC purchase the raw material fully from local providers. (3). Great brand power. These days, the internet is highly developed and information is commonly shared by people around the world, which makes it a good way to publicize KFCs brand more easily and efficiently. Based on parent companys terrific and strong brand reputation, KFC in China are as well known by almost each household, even for those who have not been to KFC. (4). Reasonable Location of restaurant. Same as McDonalds location, every time, KFC restaurants location is successful. No wonder that these two famous and popular western style fast food restaurants are usually located besides each other. 4.4 Competitive strategy of KFC in China Enterprises usually choose those strategies which can bring them competitive advantages. According to Potter theory(Porte,1997), ones competitive advantage is either from less cost than competitors or from obvious differentiations from its rivals. So competitive strategies include the following three types: cost leadership strategy, the differentiation strategy and centralization strategy. If enterprises through their innovative design, technical potential ability or outstanding brand image and so on seek to provide different products, unique services, this strategy is called differentiation strategy which is based on a broader market comparing with centralization strategy (Prahalad, Hamel,1990). Here, we highlight the differentiation strategy as it is the major and most important strategy not only for KFC but also for other successful western style fast food restaurants such as McDonalds. By its definition, it means that according to their own product positioning, one develops its o wn new products and establishes its competitive strategies in terms of supplier management strategy, brand strategy, talent strategy and so on. (1) Product strategy: product localization. On KFCs menu, there are some main varieties which not only in China, and even around the world are standardized and unified. But, in aspect of product innovation and uniqueness, KFC spares no effort to meet the different needs of customers in China. Since the mid 1990s, it was determined to build KFC as an influent brand which fulfills Chinese demands. To ensure the execution of this thinking and working direction, In 2000, KFC sincerely invited 40 national food nutrition experts to establish the Chinese KFC health consulting committee(www.kfc.com.cn). In 2004, due to KFC products innovation and localization strategy, it broke the boundaries between the western style fast food and traditional Chinese fast food, resulting in more new consumer market. At present, of more than 30 new products in Chinas regional market launched by KFC, at least half of them are of the Chinese characteristic. Some varieties even hit the consumer market since they learned from eight famous Chinese cuisines . For those products aiming at Chinese people , such as fresh vegetarian soup, cold rice, corn salad, old Beijing chicken and etc enjoy a wide popularity among people for its deep Chinese flavor. On summer of 2004, Guangdong province, the traditional old cool tea named WangLaoji, which is a traditional drink brand originated from Guangdong province, formally appeared on KFCs counter. This is the first time for KFC to introduce completely and directly traditional Chinese product into its food menu rather than indirectly improve these traditional food. Besides the deepening of localization strategies, KFC is now studying on consumers preferences within a region, in order to promote the regional localization strategy in the future. It has been over 20 years since KFC entered China. Now, KFC ranks first in fast food industry in China, largely owing to its localization strategy. In the Chinese market, KFC launches 1.5 new products per month averagely, and the turnover from KFC in China a lready is the powerful and main support for the headquarters profits. (2)Target strategies: focusing on families For fast food industry, the most commonly used method for target market positioning is to divide the consumer market based on demographic factors. Other factors such as region factors, customer psychological factors and customer consumption behavior factors are less taken into account(Emerson,1990). Of demographic factors, western fast food industry mainly considers age as market positioning variables. KFCs target markets are families, which mainly include consumption of young people and young parents with their children(Gould,2002). Dining environment aims at providing family reunion, warm dinner atmosphere. And because of its product diversification and the localization of taste, KFC managed to attract more people of all ages, particularly, with elders included. A few years ago, KFC launched the family meal, which is quite enough for a whole family to eat. In addition, being different from McDonalds publicity and dynamic advertising, or inviting stars to join the advertisement, the feature of the image of KFC is its simplicity and implicative style, the warmth and love. (3)Brand image strategy: localization With more attention is paid to brand image individuation by the enterprises, KFC in China have paid more attention to Chinese consumers psychology. Not only the information into life they would like to spread, but also the concept change for China to make a new fast food. In each brand image details, KFC is characterized by obvious Chinese culture features. KFC restaurants in China use a new mark and adornment concept. Not only a very smart appearance, all visual elements like dining-room design, advertising, food packaging, staff uniforms, public goods have been armed with new visual marks. Even the KFC grandpa also changed into traditional Chinese costumes on Chinese traditional festivals. By doing this, KFC publicized its brand and marketing. Since people like to focus on changes or fresh things, while invariable things easily cause visual fatigue, failing stimulating people sensory and becoming the focusing centre naturally. Hence, from the strategic height, KFC sent signals of c hanging to the media as well as consumers. KFC successfully made itself the social attention centre by gathering the public attentions, eventually smoothly spread its brand strategy and tactics to the public. SuJingShi, China regional President of Yum KFC once said: Since the entry into China in 1987, KFC has always been able to insist on the concept of Chinese brand building, and devote every effort to make it. Under this localization concept, the distance between KFC and Chinese customers is continuously getting closer. Building Chinese brand means putting Chinese flavour into its brand building. In this way, it will definitely leave a more obvious trace of localization. (4)Talent strategy: localization. KFCs talent localization, not only embodies in grass-roots employees, but more importantly, in the high-level management. From the first store in China until now, KFCs talent localization strategy have never been changed and even enhanced. KFC cultivate and promote and use local talents, giving full play to their comparative advantages due to their more familiarity with policy environment and local market features. At present, KFC has employed eight general managers from Mainland Chinas total managers who are responsible sixteen markets in China respectively. Those senior management personnel who are directly responsible for the operation of restaurant such as operation manager, regional manager and Hall manager are recruited locally. Those local management personnel can better understand the local demand, master the local consumer psychology and consumption habits, quickly discover local market growth point, more accurately grasp the market pulse and timely make strategic adjustment (Caudron,1991), which helps KFC to win out competing against others. In order to better implement talent localization strategy, KFC creatively put forward the framework with great Chinese characteristics of double departments: the operation department, HR and training department. This framework has a nickname two HR departments. ChenYaqing, the operating training senior manager of Yum China introduced: the case that a special independent department is established from human resource training operations department is not common in the world. The importance of the Chinese market determines the necessity to do so. We can see from this the great determination of talent strategy of KFC. (5)Supplier management strategy: humanization KFCs raw materials are all provided by local enterprises, so KFCs rapid development also stimulates the development of various related raw material supply industries in China. Currently, about 95% of food and packing materials are provided by suppliers in China. Based on principle of common interests, KFC introduces local suppliers brand new management concepts and advanced technologies, and offers them active training programs and generous help especially for those suppliers who are sometimes in difficulty. Through this, KFC has formed strategic partners with local suppliers in China. Firstly, expanding the scale of the domestic suppliers. KFC took active measures to make its twenty five domestic suppliers who are distributed in the twenty seven cities and regions are now the most outstanding in industry. For example, Zhucheng Foreign Trade Corporation in Shandong province, being in relationship with KFC for more than five years has become the largest county foreign trade corporatio n. Secondly, localization of overseas suppliers. KFC has been actively encouraging foreign suppliers to enter into China to establish local factories. For the past few years, KFC have succeed in promoting seventeen products localization which originally have to be imported from overseas suppliers. KFC Continuously integrated suppliers around itself, and established a strategic cooperation partnership with them. The attitude KFC treated with suppliers reflected the humanistic concern and Chinese characters. 5. S.W.O.T analysis of Chinese fast food enterprises Taking KFC as a typical example of western style fast food enterprises, we have showed the competitiveness and competitive strategies they adopt. To compete successfully against with them, what strategies should our Chinese fast food enterprise adopt? To answer this question, an S.W.O.T analysis may be effective. And when it comes to analysis on external opportunities and threatens, we could also apply PEST analysis. 5.1 External Opportunities (O) 5.1.1 Economical factors: (1) Economy of China grows at high rate. Since the policy of Reform and Opening-up in 1978, Chinas government has constantly taken economic development as the center, persisting in Reform and Opening up. For a recent decade, Chinas economy increased at an average rate over 10%.(www.stats.gov.cn) Even during the Southeast Asian Financial Crisis in 1998 and financial crisis recently, under the impact of world economic shock , Chinas economic performance is the best among the world. (1)Industry has a huge potential for development. Although with peoples living standards improving, the proportion of the third industrys output to GDP is increasing, but compared with the western developed countries, China is still low in proportion of the third industry to GDP. While the third industry is a good way to increase employment, social wealth as well as peoples effective living standard, so there must be a huge potential for development of third industry in China. As part of the third industry, the output of the fast food industry in China has increased at average rate of 16%, even during bad times like the Southeast Asian Financial Crisis, it enjoyed the rate over 16% (www.stats.gov.cn). In fact, the national bureau of statistics in China considered the fast food industry as one of the industries with the greatest economic growth, which revealed that the fast food in China would become a promising industry in the future. 5.1.2 Political factors: (1)Great policy support. In order to support Chinas fast growth, in march of 1997, Foreign Trade Department in China issued à £Ã¢â€š ¬Ã…  the Chain Stores Operating Normsà £Ã¢â€š ¬Ã¢â‚¬ ¹, later à £Ã¢â€š ¬Ã…  Development Program of Fast Food Industry in Chinaà £Ã¢â€š ¬Ã¢â‚¬ ¹in September of 1997, and à £Ã¢â€š ¬Ã…  The Commercial Franchising Management Measuresà £Ã¢â€š ¬Ã¢â‚¬ ¹(for trial implementation) in November of 1997. All these documents pointed out the guiding principles, development target, the main task, organization in the implementation and measures. (2) Political stability The good investment environment, huge market and abundant tourism resources, attracted a large number of investors and tourists, thus making fast food become a indispensable need for businessman, tourists and other people who are occupied by outdoors activities. (4)Chinas entering into WTO promotes development of fast food industry. Firstly, the fast food industrys raw material costs would decline and the quality would be improved. According to the agreements between China and American, China would open part of its grain market after entering into WTO. China would import 30million tons grain with high-quality, accounting for about 6% of Chinas whole grain market. These imported grain included One thousand tons of wheat, seven hundred tons corn six hundreds tons of rice, five hundred tons of soybean meal, four hundred tons of soybean and three hundred and thirty tons of soybean oil, meanwhile some special breeds of certain fruit and meat .Because of the low price and good quality of import products, this will push domestic enterprises to reduce costs and improve quality. Secondly, it is helpful to expand the use of foreign capital and improve manufacturing processing equipments technological level. According the principle of national treatment, foreign investors will be treated as same as Chinese domestic enterprises. Further more, the Chinas legal policies are becoming more transparent, it is easier for foreign investors to well predict market risk and profit condition. We have great confidence that foreign investors will invest in fast food industry. This can solve domestic capital insufficient contradiction, also can improve food Industry processing technology and management level, to produce scientific and modern Chinese food. Thirdly, it is advantageous for Chinas fast food enterprises to compete in the international market. Under the framework of WTO, each members of WTO reduce tariff rate and eliminate barriers, and open services trade market. Our domestic fast food enterprises can enjoy national treatment, which helps to create opportunities for them to walk towards the world. Chinese food, especially the various cuisines, enjoy high reputation and consumers big welcome. If the traditional crafts with modern scientific technology can be perfectly combined, with good quality and reasonable price, Chinese fast food will be bound to succeed In the international market. Fourthly, it is helpful to accelerate the strategic reorganization of Chinese fast food enterprises. The large restaurant brand enterprise groups, with the establishment of fair market competition system, the competition among domestic fast food enterprises and between domestic fast food enterprises and foreign ones will tend to be more intense. After that, however, some large restaurant brand enterprise group, with the appropriate scale and regional across, will be formed. 5.1.3 Social factors: Although more young people love to enjoy western style fast food, most of adults still prefer Chinese fast food. It is no doubt that in the future, people will definitely pay more attention on diet health. And since Chinese people are rooted on their profound diet culture, it is not easy for them to shift away from tradition. Moreover, this advantages over western style fast food can be enhanced as long as Chinese fast food enterprises develop suitable strategies to assure the quality, tastes, service as well as to improve the management. 5.1.4 Technological factors: In fact, a great of the success of western style fast food should attributed to technological progress which also do good to Chinese fast food enterprises. Owing to more advanced and sophisticated cooking equipments, it costs less time to provide and offer Chinese food. Additionally, the cooking process can be divided into small pieces and each piece can be controlled, which ensures the finest quality of food and make standardization feasible. 5.2 External Threatens (T) (1) Fast expansion of western style fast food in China. In 1987 on November 12, the first KFC restaurant was established in Beijing .about 20years later in 2007, the chain stores of Yum KFC group in China has amounted about two thousand and one hundred. During the period of time , McDonalds, pizza hut, Japanese, Italian pizza all entered into China In succession, in order to share the huge Chinese consumption .not only did these western style fast food occupied consumption market, they also changed gradually the diet concept of Chinese people. (2) The competitive advantages of western style fast food enterprises are strengthened. Based on competition principles of fairness, openness, justification, the foreign enterprises in China usually implement localization strategy to reduce the cost. In China, however, there are many and serious defects in talent incentive mechanism and income distribution system, so the foreign enterprises with good training mechanism, and competitive compensation And scientific personnel management mode, will attract large quantities of outstanding management and professional talents. Until the end of 2000, the total KFC staff in China is 2.4 million, of them, More than 5,000 members are restaurants managers or function managers. During the early period time after KFCs entering in to China, the raw materials were fully imported abroad. But nowadays, being fully provided locally, resulting in KFCs operating costs further reduced, the competitive advantages further strengthen. (3) Competition between industries is intense. In the past, hotels and restaurants confined their consumption market to people with median or high income level. Because this market has been saturated, now the restaurants shift their attentions to a broader need of the public. Usually, in order to attract more consumers, the restaurants nowadays provide the food at a very reasonable price. Further more, to satisfy different tastes of different kinds of consumers, more varieties and flavors of food have been developed. More and more restaurants begin to operate their business in a chain and systematic way, which lowers the operation costs quite a lot. (4) A large number of potential entrants From the perspective of investment capital, the general financing volume is not very high. According to the à £Ã¢â€š ¬Ã…  Chinese Fast Food Industry Research Reportà £Ã¢â€š ¬Ã¢â‚¬ ¹, to invest one fast food store, the minimum investment capital requires 100 thousand Yuan, and the maximum investment capital is 1million Yuan. Usually, the former which need a smaller volume money are Chinese fast food chain enterprises, while the latter which need a larger volume of money tend to be western fast food chain enterprises. Investment above includes training fee and decoration expenses and so on. From the view of technology, the technologic barriers of fast food industry are not very high neither. From the view of the market situation, diet is an important competent of social activities for people and also serves as a main way for intercourse among people. Especially, the long history of thousands of years of the diet culture determines that the consumption market of fast food industry is huge. Factors like high return on investment, stable consumption market make fast food industry the investing hot, with a large number of investors in. (5) Diet culture changing. Over the world, it is impossible that the food demand structure of one country keep invariant, without being influenced by foreign food culture. This even applies to countries like China, France and Italy which all have a proud diet culture. It is inevitable that new varieties of food and cooking methods from other countries or regions will affect another nation food demand structure(Shone, Nobuhiro, Kaiser, 2000). The more open of one nation, the easier the food demand structure of itself tends to be affected by foreign food culture. Not only have Western fast Food culture promoted the development of Chinese fast food, but also have cultivated a certain group who have a preference for western fast food(Jussaume,2001). Since the youth are the target consumption market for KFC, the youth are mostly affected by western fast food culture. They think of eating western style fast food as a new and fashionable life style rather than simply satisfying their appetites. 5.3 Internal Strength (S) (1) A large number of varieties There are a large number of Chinese fast food varieties such as rice, noodles, dumplings, pancakes and so on, which are characterized by traditional national characteristics. It is rather difficulty for western fast food restaurants to offer such rich varieties of food. The diet culture with the history of five thousand years impresses every Chinese profound influence, which is the greatest advantage over western style fast food. (2) Flavours of diversification Due to Chinas vast territory and 56 ethnic groups in different regions, consumers in different regions have different diet habits. Even within the same region, the tastes vary across individuals. Although Western style fast food restaurants make some adjustment on tastes in different countries to satisfy the local taste, generally, the tastes of their food have not changed a lot for their slogan tastes the same over the world. (3) Moderate price China is still a developing country, in 2001, disposable income of urban residents per capita is 6860 Yuan. Price is still the major considering factor when they are planning to consume. The cost of western-style food consumption per capita each time is between 20yuan to 50yuan, which is still on the high side for general consumers. According to the statistical analysis, the average cost of Chinese fast food per capita each time is about 10yuan which is the consumption level that most Chinese people can reach. As a matter of fact, these people are the main consumption of fast food industry. (4) Loyal customers It is the cultural features of food consumption that assures the Chinese fast food enterprises stable and loyal customers. Food consumption is not only a mean which satisfies people the most basic physiological needs, but also cultural features by which a nation is distinguished from other nations. Whether you are one of the elders who are deeply rooted by prominent feature and traditional culture or of new trend-spotting generation, and whether you are one of the rich who pursuit life quality or of the low-income receivers who are mainly contented with physiological needs. As long as you are born in China, the diet culture is rather hard to change. Although other cultural features, such as the consumption idea, clothing, lifestyle is actually changing with the further development of Globalization, modernization. The Local feature makes the entry of the foreign enterprise into Chinese market more difficult than the entry into markets like financial market, insurance market, Consultin g and other services industry market. Compared with the enterprises into China, Chinese fast food enterprises have a objective advantage namely customer loyalty. 5.4 Internal Weakness (W) (1)The poor sanitary conditions in restaurants and instability of food quality The sanitary conditions of fast food industry is directly related to the health of customers. They are reflected in three aspects: sanitary conditions of the production of food processing, sanitary conditions of tableware and dinnerware and sanitary conditions of dining restaurant environment. The sanitary situation of most fast food enterprises in our country health situation is worrying, even if Equipped with the disinfection equipment according relevant regulations, the procedure of disinfection is often omitted when there are not enough dish plates. Chef and Staff are very in cleanliness, especially during summer. Such terrible sanitary conditions discouraged many customers from dining. KFC especially emphasis on internal cleansing, the company set rules about how to check the stores cleanliness. Items like food quality, cooking, cooking time and temperature and so on have to be evaluated by the following assessment: quality, service, health and value .the scores of the four asse ssments would decide whether you are eligible to join to apply for new stores. Chinese fast food restaurants are lack of quantitative criteria, because the chef cooks by his or her experience. It is difficult to guarantee quality of uniform standards, and food quality is not showing a great deal of stability, which has a negative effect on the inheritance of the traditional cooking and Chinese fast food track of modernization. Western-style fast food enterprises use advanced production equipment and technology, and strictly control the food-processing time, temperature, taste, which can prevent the food from the impact of human factors to ensure the quality stability. (3)Being Slow to provide food Summary of the main features of fast food is to provide catering services in the shortest possible time(Jekanowski, Binkley ,2001), thereby saving consumers time. For fast food enterprises, if they can not increase the service speed, it means that they are probably to lose their customers and market. It is estimated that the waiting time of Chinese fast food enterprises customers is a period of 15 minutes for 10, while KFCs is less than two minutes. (4) Marketing concepts left behind Food products include three parts: a core product to meet the appetite; the form of products of a delicious food, excellent environment, clean utensils; extension product of a satisfactory service. Chinese fast food enterprises are in the pursuit of foods colour, Smell and taste too much, and ignore the image of the restaurant, service norms, the waiting time, cleanliness of environment and extension of the form of products(Liu,2003). Therefore the overall product does not meet consumers expectations, resulting in failure in competition with Western-style fast food. The Chinese fast food enterprises are poor at brand awareness, people are more familiar with KFC an

Energy Trends And Energy Policy In Malaysia Environmental Sciences Essay

In the twelvemonth 2005, the energy ingestion in Malaysia is about 38.9 Mtoe which is addition about 5.6 per centum from the twelvemonth 2000. Oil is a significant part of energy consumed which is about 63 per centum. It is chiefly used in the industrial and conveyance sector. Natural gas ingestion besides increased in analogue with the fuel electricity demand. Although it is decrease from 77 per centum in yea 2000 to 70 per centum in twelvemonth 2005 but it still considered as a high in the portion of natural gas with the electricity coevals. Actually the authorities wants to increase the portion of coal in the electricity coevals mix, but it merely reached about 22 per centum in 2005. In twelvemonth 1980, Malaysia authorities introduced the National Depletion Policy. It is because Malaysia has many conventional energy resources ( oil and gas ) and renewable energy such as hydro, biomass and solar energy. The intent of this policy is to develop the economic system ‘s oil and gas in a sustainable mode and fixed the maximal day-to-day oil and gas production degrees. The production degrees for the natural gas militias are expected to last another 33 old ages and oil militias are expected to last another 19 old ages. Malaysia authorities introduced the Five Fuel Strategy in order to happen alternate energy beginnings after oil, coal, natural gas and hydro. In 2005, biodiesel was introduced for the conveyance sector to accomplish sustainable energy development through variegation of fuel beginning. Energy demand The portion of Malaysia ‘s urban population will increase from 63 per centum in 2002 to 78 per centum in 2030. Besides, the existent GDP besides increase about 3.4 per centum per annum. The increasing of population and existent GDP will take to alter in lifestyle and do energy demand besides increase in the conveyance, commercial and industrial sector. Beginning: Global Penetrations ( 2005 ) Figure: Real GDP and Population The concluding energy demand until 2030 shows the industry sector will hold the highest growing rate which is about 4.3 per centum. The 2nd growing rate is transport sector at 3.9 per centum and followed by residential at 3.1 per centum. The lowest growing rate energy demand is commercial sector at 2.7 per centum. The concluding energy demand is shown in figure below. Beginning: APERC Analysis ( 2006 ) Figure: Final Energy Demand Although the concluding energy demand for the industry sector is the growing rate, but its mean one-year growing is decrease about 7.5 per centum over the past two decennaries. It is because of the switching industry construction from energy intensive to non-intensive energy and betterment of energy efficiency. Energy demand for natural gas is expected to growing at 43 per centum of industrial demand in 2030. Hence, substitute the oil as a primary fuel in Malaysia. Malaysia authorities makes many programs in order to happen alternate renewable fuel. It can see by the development of biomass energy in Malaysia. Biomass energy is used in cogeneration by palm oil industries. Intro Production The Malayan authorities stated that mush and paper industry as one of the of import sector for investing in the 2nd industrial maestro program ( IMP 2 ) . The chief aim of this program is to accomplish a province of ego sufficient, cut down import and promote foreign capital influx. Although, in the twelvemonth 1997 occur Asiatic Crisis, the mush and paper industry still can last to make their production. No mill was closed down or taken by larger companies at this clip. The mush and paper industry merely produce little production because they cutting the cost of production but still efficient. This industry besides concentrating on niche markets at the national graduated table. Until now, this industry becomes one of the of import sectors that contribute to development of Malaysia economic system. The entire capacity of mush and paper production is about over than one million tones per twelvemonth and it is increase twelvemonth by twelvemonth. In Malaysia, the production of mush and paper industry does non carry through the domestic ingestion. Malaysia had ever dependent on newspaper import. Figure: Malaya Pulp Production and Consumption Figure: Malaysia Paper Production and Consumption Malaya is turning in the paper recycling procedure. Many mills use about 95 per centum wastepaper as a natural stuff base. Some company makes net income by selling the wastepaper to another company. The authorities decided to censor export of wastepaper to do certain that all of the wastepaper collected stayed in the state. Figure: Pulp and Paper mill in Malaya From the figure, there are 20 mills of mush and paper in Malaysia. For the instance survey, three mills were selected. The mills are: Cenpak Holding ( M ) Sdn Bhd Plo 59, Jalan Perusahaan 4, Senai Industrial Estate, 81400 Senai, Johor. The company specialising in the maker of expandible polystyrene boxes and corrugated paper cartons merchandises. This company was established in twelvemonth 1991. 2 ) Genting Sanyen Industrial Paper Sdn Bhd Batch 7090. Mukim Tg. 12, Karung Berkunci 206, 42700 Banting, Selangor Malaya The company specialising in the maker of line drives and corrugated medium documents. This company was established in twelvemonth 1992. It has approximately 600 employees working in this company. The company is able to bring forth 250,000 M/T of industrial paper per twelvemonth. 3 ) Ornapaper Industry ( M ) Sdn Bhd No. 8998, Kawasan Perindustrian Peringkat IV Batu Berendam 75350 Melaka Malaya The company specialising in the maker of corrugated cartons and boards. This company was established in twelvemonth 1990.It has approximately 300 employees working in two displacements. The company is able to bring forth 100,000 M/T of corrugated boards and cartons per twelvemonth. Table shows the entire operating hr and net production for each mill. From the tabular array below, the highest production and runing hr is from Genting Sanyen compared to Ornapaper and Cenpak. It is because Genting Sanyen has a big works and many fabrication machines that allow to bring forth a big sum of production. No Item Unit of measurement Cenpak Genting Sanyen Ornapaper 1 2 Operating hr Net Production h/yr t/yr 6240 6,645 8400 196,631 5840 43,756 Table: Entire runing hr and net production Operational government and production figures Cenpak Holding ( M ) Sdn Bhd The works operates for 24 hours a twenty-four hours throughout the twelvemonth. The operational government of the works differs harmonizing to the procedure as shown in table below. No Item Unit of measurement Figure 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Base information CCB Corrugator machine Flexo Printing machines Waste H2O intervention EPS Preexpansion Modeling machines Dryers Boiler room operation Boiler 1 Boiler 2 h/yr h/yr h/yr h/yr h/yr h/yr h/yr h/yr 3,120 3,120 3,120 6,240 6,240 6,240 6,240 3,120 Plant operational government The monthly net production end product for the period January 2000 to December 2000 is shown in the undermentioned tabular array. Calendar month Unit of measurement Expanded polystyrene Corrugated carton box Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Sum T T T T T T T T T T T T T 59 74 62 48 57 65 66 66 53 64 45 36 695 567 743 478 479 478 422 533 472 453 565 456 306 5,950 Entire net production for the mention period Genting Sanyen Industrial Paper Sdn Bhd Operational government and production figures The works operates for 24 hours a twenty-four hours throughout the twelvemonth. The operational government of the works for each section is shown in table below. Department Working ( yearss ) Number of Shifts Working Hours Annual Operating Hours Stock readying 7 3 24 8,400 Paper machine 7 3 24 8,400 Care 7 3 24 8,400 The monthly production end product for the twelvemonth 2000 is given in the tabular array below. Calendar month Production ( T ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Entire 16,055 16,073 15,961 16,266 16,928 17,078 16,944 16,686 14,960 17,144 15,743 16,795 196,631 Ornapaper Industry ( M ) Sdn Bhd The Ornapaper works operates 16 hours a twenty-four hours on two displacements. However, certain subdivisions operate over longer periods. The one-year operating hours of the works harmonizing to the procedure are shown in Table below Plant one-year runing hr Unit of measurement Figure Corrugator machine Printing machine Waste H2O intervention Boiler Compressor Hr/yr Hr/yr Hr/yr Hr/yr Hr/yr 5840 5840 5840 5840 5840 The monthly production end product of the works for the twelvemonth 2002 is shown table below Calendar month Unit of measurement Corrugated box Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Tones Tones Tones Tones Tones Tones Tones Tones Tones Tones Tones Tones 4,234 2,976 4,054 3,946 4,256 3,818 3,375 3,157 3,190 3,571 3,659 3,520 Entire Tones 43,756 Monthly production for the twelvemonth 2002 Manufacturing procedure For the instance survey, fabricating procedure for each mill is different. It is because each works produces different merchandise and different machine. In order to accomplish energy salvaging step, it is of import to cognize the fabrication procedure and it energy ingestion in the procedure. Cenpak Holding ( M ) Sdn Bhd The company produces expandible polystyrene boxes and corrugated box. The production of corrugated box based on the client specification. The production procedure is begins with starch readying and paper axial rotations. The following phase is corrugators subdivision. In this subdivision, the corrugator machine will convey together a sheet of paper to organize individual or dual bed corrugated paper. The paper is produced in a uninterrupted procedure harmonizing to the merchandise design and specifications. The machine is divided into chief subdivisions, flute and hot home base subdivisions. The flute subdivision is divided into flutes portion and dual angel. The paper axial rotations are transported under the axial rotation stands utilizing conveyers. The operator so feeds the axial rotations into the corrugators. In the individual facer, the paper is which give the paper the fluted form. Starch is applied to the tips of the flutes on one side and the interior line drive is glued to the flute. The corrugated flute medium with one line drive attached to it, is called individual phaser web and travels along the machine towards dual angel. This subdivision is known as line preheater. There, the individual facer web meets the outer line drive and forms the corrugated board. After the board emerges from dual angel, it passes a steam heated a steam flatcar known as hot home base, the cutter cuts the board to the exact required length to obtain the corrugated sheet. Finally, corrugated sheets are stacked and sent to the 2nd subdivision of the corrugators hall by operators. Then, the corrugated carton box goes to following procedure which is publishing and slotting, cutting, turn uping and pasting the board to fabricate a corrugated box. In this subdivision, it have flexographic or flexo machines. This machine will publish, cuts, creases and glues the board into the concluding form in one operation. Unfortunately, non all operation can be managing with flexo machine. For the big poster board or more sophisticated packaging manner instance, it will travel to decease cutting and sewing or pasting procedure manually. Last, the corrugated carton box will be sent to review subdivision. In this subdivision, the merchandise will be inspects whether it is fulfill the client specification or non. After the review subdivision is complete, the merchandise will be sent to the client. Flow Diagram of corrugated box procedure Starch Preparation Paper RollsCorrugatorPrintingDie CutGluing/StitchingInspectionDeliveryThe 2nd of merchandise in this company is expandible polystyrene boxes. Figure below shows the general procedure to do the expandible polystyrene boxes. EPS RESIN NEW MOULD EXPANDER SILO AGING Molding Machine REQUIRE DRYING DRYING Packing material STORING Delivery Energy use at modeling procedure. Polystyrene modeling procedure requires the supply of steam, compressed air, electricity, chilling H2O and vacuity. Steam is required to provide heat for the formation of the polystyrene mold and chilling H2O to chill the vacuity pumps and molds. Compressed air is chiefly needed for the control of the molding procedure, purge of H2O and gap of the mold. Vacuum is required in the chilling and emptying of extra steam before the mold gap. Genting Sanyen Industrial Paper Sdn Bhd Flow diagram of production procedure of paper Waste PaperRaw stuff StorageStock Preparation Paper Machine Whitewater Preparation Wire Section Imperativeness Section Dryer Section Completing Section Paper Rolls First, the waste paper is collected and some waste paper is import from another company. After that, the natural stuff will be store up to six-month supply. The stock readying starts with the cleansing procedure. It starts with the centrifugal cleansing of the diluted mixture of contaminated fibres. The diluted waste paper mixture is pumped to different machines whose intent it is to divide the useable fibres from the ink or any other soiled stuff, which might be attached to the fibre. The mixture has to be farther diluted, dewatered, washed and pressed to hold those fibres reclaimed, which are clean and transcend a certain fibre size, the remainder is discarded as sludge. The fibres are separated in short and long fibres to command the strength and quality of the paper by choosing the appropriate mixture in the paper production subsequently on. Then, the procedure continues to the paper machine subdivision. The paper machine is used as a large drier which transform the loose fibres into solid sheet of paper. The paper machine can be spliting into another subdivision which is the white water readying system, the wire subdivision, the imperativeness subdivision, the drier subdivision with size imperativeness and finishing subdivision. Whitewater readying is provides the circulating H2O for the paper machine. The wire subdivision is orientating the fibres on a traveling screen ( wire ) and allows large measures of H2O to go through through. The imperativeness subdivision presses the H2O in the imperativeness felt which in bend is cleaned with hard-hitting H2O noses and suction tubings for H2O remotion. For the drier subdivision it will distilling inside the cylinder and heats the surface to about 140 & A ; deg ; C. Lastly, the finishing subdivision provides a steel calendar for smoothing the surface. Ornapaper Industry ( M ) Sdn Bhd The company produce corrugated box which is same with the Cenpak Holding. Hence, the fabrication procedure to bring forth corrugated box besides same. The procedure involve with starch readying and paper axial rotations, corrugators, printing, dice cut, pasting, review and bringing. Energy use at the corrugator The energy consumed at the corrugators subdivision is electrical and thermic energy. Electrical energy is used to run motors, fans and compressor. Thermal energy or steam supplied to the assorted subdivisions of the corrugators. . Boiler is used to bring forth steam for corrugator subdivision to blow H2O intervention works ( WWTP ) . Steam is supplied through a distribution pipe and the distribution is shown in figure below.BoilerSteam HeadingConveyerHot PlateDouble BeckerPreheaterWater TankIntro energy ingestion Energy ingestion of mush and paper industry is about 3 per centum from the entire industrial energy ingestion in Malaysia. The mush and paper industry self-generates from the energy required to back up the fabrication procedure. Wood waste fuels, chemical waste fuel watercourse and power cogeneration is the illustration of the spontaneous. Table below show the Malayan industrial energy ingestion in 2003. Cenpak Holding ( M ) Sdn Bhd Energy and public-service corporations ingestion The public-service corporations supplied to the site are electricity, Medium Fuel Oil ( MFO ) and H2O. The entire energy ingestion of the mill and the one-year energy and public-service corporation costs in the twelvemonth 2001 is shown in table below. No Item Unit of measurement Measure Cost th.RM 1 2 3 4 MFO Electricity Water Sum th.ltr MWh th.m3 Th.RM 1,363 2,961 35 736 688 76 1,501 Annual energy public-service corporation ingestion and costs for the twelvemonth 2001 Chart: one-year energy public-service corporation ingestion ( 2001 ) From the pie chart, we can see that MFO and electricity contribute major energy to the Cenpak Holding. Therefore, it recommended concentrating to this energy to cut down the cost. Description of the electric web The mill is billed under Duty E2 by TNB. The electric use, demand and cost sum-up for 2001 is shown in table below. Calendar month On-peak ( KWh ) Off-peak ( KWh ) Entire ( KWh ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Entire Annually cost ( th.RM/yr ) Average monetary value RM/KWh 167,160 157,800 156,450 141,350 113,510 151,000 151,320 185,440 170,200 157,130 152,220 124,810 1,828,390 380 96,390 91,250 88,690 98,050 76,980 96,920 107,710 119,000 101,440 102,330 88,550 65,780 1,133,090 145 263,550 249,050 245,140 239,400 190,490 247,920 259,030 304,440 271,640 259,460 240,770 190,590 2,961,480 688 0.232 Electricity duty Item Unit of measurement Rate Electrical energy Duty codification On peak period rate Off peak period rate Maximal demand for each KWh RM/KWh RM/KWh RM/month E3S 0.208 0.128 21.70 From the graph, we can see that the highest electricity ingestion was in August and the lowest is in May. The electricity ingestion is all of a sudden reduced in May and get down addition from June to August. The peak clip and off extremum is reduced towards the terminal of the twelvemonth. Fuel supply and ingestion The fuel used at Cenpak Holding is Medium Fuel Oil ( MFO ) . MFO is used in the boiler. The MFO ingestion and costs for the twelvemonth 2001 is shown in table below. No Fuel Unit of measurement Figure Entire cost ( th.RM ) 1 MFO ltr 1,363,250 736 Water Consumption Water ingestion for the twelvemonth 2001 is shown in table below. Calendar month Consumption ( M3 ) Cost ( RM ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Entire 2,351 2,560 2,806 2,720 2,747 3,473 2,743 2,580 2,251 3,486 3,720 3,077 34,514 4,558.93 5,722.81 6,274.98 6,080.85 6,142.08 7,768.32 6,132.37 5,768.00 5,031.04 7,797.05 8,320.85 6,881.28 76,478.56 From the graph, we can see that the highest H2O ingestion was in November and the lowest is in January. The cost for the H2O ingestion is parallel with the H2O ingestion. Higher the H2O ingestion, higher the cost. Genting Sanyen Industrial Paper Sdn Bhd Energy and public-service corporation ingestion The public-service corporations supplied to the site are electricity, steam, and H2O. The one-year energy cost in the twelvemonth 2000 for each public-service corporation is shown in table below. No Utility Unit of measurement Consumption Equivalent Energy Cost GJ%1000 RM%1 2 3 Electricity Steam Water MWh T M3 98,602 316,199 2,247,232 1,268 867,334–868,602 0.15 99.85–100 19,720 7,905 1123.6 28,746 25 73 3 100 Chart one-year cost for each public-service corporation From the pie chart, we can see that electricity consume the major portion of the cost which is 69 % . Therefore, it is recommended concentrating the electricity energy to cut down the cost. Specific electricity ingestion per ton ( EUI ) The specific electricity ingestion per ton ( EUI ) for the twelvemonth 2000 is shown in the tabular array below. Calendar month Electricity ( MWh ) Production ( T ) EUI ( MWh/t ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 7,185 7,063 6,929 7,246 7,365 8,623 8,772 8,766 8,201 9,319 8,693 10,441 16,055 16,073 15,961 16,266 16,928 17,078 16,944 16,686 14,960 17,144 15,743 16,795 0.45 0.44 0.43 0.45 0.44 0.50 0.52 0.53 0.55 0.54 0.55 0.62 Entire 98,602 196,631 0.50 Table specific electricity ingestion per ton ( EUI ) From the graph, we can see that specific energy ingestion per ton ( EUI ) reaches the highest in December and lowest in March. The mean electricity ingestion is 0.50 MWh/ton. Specific steam ingestion The specific steam ingestion ( EUI ) for the twelvemonth 2000 is shown in the tabular array below. Calendar month Steam ( T ) Production ( T ) EUI ( t/t ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 26,074 26,270 26,023 27,029 27,142 27,024 24,658 28,111 27,247 28,353 22,333 25,935 16,055 16,073 15,961 16,266 16,928 17,078 16,944 16,686 14,960 17,144 15,743 16,795 1.62 1.63 1.63 1.66 1.60 1.58 1.46 1.68 1.82 1.65 1.42 1.54 Entire 316,199 196,631 1.61 Table specific steam ingestion per ton ( EUI ) Specific steam ingestion From the graph, we can see that specific steam ingestion ( EUI ) reaches the highest in September and lowest in November. The mean electricity ingestion is 1.61 t/t. The specific H2O ingestion for the twelvemonth 2000 is shown in the tabular array below. Calendar month Water ( M3 ) Production ( T ) Spec. Water Consumption ( m3/t ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 18,2257 16,6727 17,7752 17,7061 17,9752 18,5445 20,6532 19,7667 19,4102 20,0148 18,2558 19,7231 16,055 16,073 15,961 16,266 16,928 17,078 16,944 16,686 14,960 17,144 15,743 16,795 11.35 10.37 11.14 10.89 10.62 10.86 12.19 11.85 12.97 11.67 11.60 11.74 Entire 2,247,232 196,631 11.43 Table specific H2O ingestion. From the graph, we can see that specific H2O ingestion ( EUI ) reaches the highest in September and lowest in February. The mean electricity ingestion is 11.43 m3/t.Energy and Utilities ConsumptionThe major energy consumed in their works is light fuel oil ( LFO ) , electricity and diesel oil. Electricity is utilised chiefly for its procedure machine such as corrugator, publishing machines, sewing machine, compressor, fan and office. LFO is used by boiler to bring forth steam while Diesel is chiefly used for vehicles. The entire energy and public-service corporations ingestion for the twelvemonth 2002 is shown in table below. No Item Unit of measurement Measure Cost th.RM 1 2 3 4 LFO Diesel Electricity Water Sum th.ltr th.ltr MWh M3 th.RM 1,485 102 3,294 24,346 980 64 605 36 1,685 Chart: one-year energy public-service corporation ingestion ( 2002 ) From the pie chart, we can see that LFO and electricity contribute major energy to the Ornapaper. Therefore, it recommended concentrating to this energy to cut down the cost. Electricity duty The site belongs to TNB ‘s duty codification E2 – Medium Voltage Peak / Off-peak Industrial Tariff. Table below shows the duty rate. Item Unit of measurement Rate Electrical energy Duty codification On peak period rate Off peak period rate Maximal demand for each KWh RM/KWh RM/KWh RM/month E2 0.208 0.128 21.70 Electricity ingestion Table below shows the monthly electricity ingestion and costs for the twelvemonth 2002. Calendar month On-peak ( KWh ) Off-peak ( KWh ) Entire ( KWh ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Entire 198,000 195,860 200,350 218,840 209,570 209,570 210,520 215,850 215,380 202,780 212,690 186,130 2,475,540 100,270 85,040 111,930 111,460 112,460 112,460 73,460 84,720 78,260 73,060 61,250 62,640 1,067,010 298,270 280,900 312,280 330,300 322,030 322,030 283,980 300,570 293,640 275,840 273,940 248,770 3,542,550 Annually cost ( th.RM/yr ) 515 137 651 Average monetary value ( RM/KWh ) 0.184 Graph: Electricity Consumption ( 2002 ) From the graph, we can see that the highest electricity ingestion was in April and the lowest is in December. The peak clip is about same throughout the twelvemonth but the off extremum is reduced towards the terminal of the twelvemonth. Fuel ingestion Light Fuel Oil ( LFO ) and Diesel are used at Ornapaper. As reference before, LFO is used for boiler to bring forth steam and Diesel is used for vehicle. Table below shows the fuel ingestion for the twelvemonth 2002. No Fuel Unit of measurement Figure Entire cost ( th.RM ) 1 1.1 1.2 Liquid fuel LFO Diesel ltr ltr 1,621,280 101919 1070 64 Entire Cost 1134 Specific Energy Consumption ( 2002 ) Calendar month Electricity ( KWh ) LFO ( ltr ) Production ( metric tons ) Specific Energy Consumption Electricity ( Kwh/tonnes ) LFO ( GJ/tonnes ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 298,270 280,900 312,280 330,300 322,030 322,030 283,980 300,570 293,640 275,840 273,940 248,770 99,655 71,182 160,527 93,764 239,073 130,255 145,800 149,236 87,873 164,152 143,427 136,337 4,234 2,976 4,054 3,946 4,256 3,818 3,375 3,157 3,190 3,571 3,659 3,520 70.4 94.4 77.0 83.7 75.7 84.4 84.1 95.2 92.1 77.2 74.9 70.7 0.85 0.86 1.43 0.86 2.03 1.23 1.56 1.71 1.00 1.66 1.42 1.40 Entire 3,542,550 1,621,280 43,756 81.6 1.33 Graph specific energy ingestion ( electricity ) From the graph, we can see specific energy ingestion highest in February and the lowest in January. Specific energy ingestion is cut down from October to January. Therefore, it is chances to cut down the electricity ingestion. Graph specific energy ingestion ( LFO ) From the graph, we can see specific energy ingestion highest in May and the lowest in January. Specific energy ingestion is about same from January to February. Therefore, it is chances to cut down theLFO ingestion and step energy salvaging for the boiler. Water Consumption Water is used for boiler to bring forth steam and for publishing procedure at the Ornapaper. The H2O ingestion for Ornapaper in the twelvemonth 2002 is given in table below. Calendar month Figure ( M3 ) Entire Cost ( th.RM ) Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Entire 1,480 1,581 2,486 1,994 2,349 2,331 2,245 1,986 1,171 1,194 1,676 3,265 23,758 2,175.60 2,324.07 3,654.42 2,931.18 3,453.03 3,426.57 3,300.15 2,919.42 1,721.37 1,755.18 2,463.72 4,799.55 34,924.26 Graph H2O consumotion and cost ( 2002 ) From the graph, we can see that the highest H2O ingestion was in December and the lowest is in September. The cost for the H2O ingestion is parallel with the H2O ingestion. Higher the H2O ingestion, higher the cost.

Help for Writing a Research Paper Features

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Global Warming And Its Effect On The Environment - 849 Words

It is known that global warming contributes to climate change worldwide. Climate change directly affects the environment, but also affects aspects of one’s everyday life such as technology. Although not apparent, technology can propel or inhibit climate change. As many know, global warming is due to an excess of carbon dioxide in the atmosphere. Recently, an oil and gas company, Exxon Mobil, was accused of not warning the public about the risks of climate change; the extent in which the company contributes to climate change. Many believe this was due to the fact that the company wanted to protect their profits. Essentially, by releasing such information the company would face backlash from environmentalists as well as the possibility of receiving violations from the federal government. Environmental and social justice groups did not cease. They demanded that a federal investigation occur in which such allegations were researched. The groups addressed a letter to Attorney Gener al Loretta Lynch comparing the fraudulent activity of Exxon Mobil to the tobacco industry in the 1950’s. Exxon Mobil denied the allegations declaring that they finance accurate scientific research. Over the past century, human activities have released large amounts of carbon dioxide and other greenhouse gases into the atmosphere(EPA 2015). The question that remains is how does this affect technology(EPA 2015)? Technology is apparent in almost all aspects of one’s everyday life whether one is using aShow MoreRelatedGlobal Warming And Its Effect On The Global Environment1144 Words   |  5 PagesGlobal warming has emerged as one of the most serious concerns for scientists and environmentalists in the 21st century. 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