1.

1 BACKGROUND OF MALAYSIA

Malaysia mainly exports the following commodities, Electronic equipment, Petroleum and liquefied natural gas Wood and wood products Palm oil Rubber, Textiles ,Chemicals. ( Economic Watch Content, 2010) Malaysia import Electronics ,Machinery, Petroleum products, Plastics, Vehicles, Iron and steel products, Chemicals ( Economic Watch Content, 2010) Vision of Malaysia is a to foster an office which embodies the Prime Ministers leadership vision towards an innovative government of excellence and integrity, in serving the people and the nation. And the mission of It is our mission to provide a conducive environment to assist the Prime Minister in carrying out his duties and responsibilities effectively, efficiently and in a timely manner. Prime Minister of Malaysia Dato' Sri Mohd Najib was appointed as Malaysia's 6th Prime Minister on 3 April 2009. He succeeded Tun Abdullah Ahmad Badawi who did not seek reelection as Umno President. Dato' Sri Najib, the eldest son of Malaysia second Prime Minister, Tun Abdul Razak Hussein, was born in the district of Kuala Lipis in the state of Pahang. He received his primary and secondary education at one of the country's leading schools in the country, St John's Institution. He then continued his secondary education at the Malvern Boy's College, Worcestershire, England. Upon completion of his secondary education, Dato' Sri Najib enrolled at the University of Nottingham and graduated in 1974 in industrial economics. Malaysias economic growth is largely due to the expanding industrial sector, which has contributed to an 8-9 percent annual growth rate from 1987 to 1997. Growth in the service sector is driven by wholesale and retail trade and finance and insurance, while the manufacturing sector is driven by growth in export, especially of electronics. The main export partners are United States, Singapore, Japan and China. The system of Government in Malaysia is closely modeled on that of the Westminster parliamentary system, as a legacy of British colonial rule. Malaysia is a federal constitutional

elective monarchy, where the King is the head of state and elected every five years from one of the Sultan states. Malaysias legislative power lies in the Parliament, executive power is vested in the cabinet led by the Prime Minister, and the judiciary is independent of both the legislature and the executive powers. The Parliament consists of the Senate with 70 non-elected representatives and the House of Representatives with 222 elected representatives. The members of the House of Representatives are elected every five years, and the leader of the largest party becomes Prime Minister and head of Government. Although the federal Government promotes private enterprise and ownership in the economy, the economic direction of Malaysia is heavily influenced by the Governments development plans. The Government has a development plan to improve the manufacturing sector which is called the Industrial Master Plan. The current Third Industrial Master Plan (IMP3) covers the period from 2006 to 2020. The purpose of these industrial plans is to make Malaysia a major trading nation and build up the countrys economical and human capital. IMP3s period. The population of Malaysias is currently around 27million, with approximately 85 percent living in Peninsular Malaysia. The three largest groups, Malays, Chinese and Indians, mainly live on this peninsula and are the groups which one is most likely meet in a business situation. Malaysia is also home to the indigenous Orang Asli population, and there are other tribes living in the more sparsely populated states of Sabah and Sarawak in the eastern part of the country. the major groups. English is widely spoken by all groups because it was the administrative language of the British colonizers and it is also the working language in most offices in the main cities. The Malays make up more than half of Malaysias population, and are the most dominating ethnic group in several ways. Their language (Bahasa Malay) is the official language, their religion (Islam) is the state religion, and it is reasonable to say that they control most of the Government. The Chinese are the second largest group in Malaysia and have an important presence and influence within major industries and in the commercial sector. When doing business in Malaysia one can expect to meet a majority of Chinese businesspeople. The Chinese in Malaysia are normally followers of Buddhism or Taoism and they speak a variety of Chinese dialects. Indians make up about ten percent of the population, yet they own less than one percent of the countrys corporate wealth. The majority of Indians are still manual laborers on plantations and in factories, though the group is also represented within various service professions, such as medical, legal and engineering. Most Indians in Malaysia are Hindu,

though a considerable part is Muslim. The majority speaks Tamil, but many middle-class Indians speak English as their first language.( wendy, 2012)

1.2 BACKGROUND OF COMPANY

TRADEMARK Hot & Roll, an emerging leader of "Wholesome Tasty Treats Anytime, Anywhere The Hot & Roll Story HOT&ROLL is an emerging leader of "Wholesome Tasty Treat Baked Food Products which can be enjoyed ANYTIME, ANYWHERE especially for those who are constantly On-the-Go. The franchise belongs to HOT & ROLL Holdings Sdn Bhd which is the owner of the HOT&ROLL trademark. We started off with one kiosk located at Cheras Leisure Mall in April 2003 and sold Crispy Wraps (a very thin cooked pancake from a homemade Malaysian flour mix). The kiosk attracted the attention of many investors both locally and from abroad who were interested in being a part of the franchise. All this occurred even before we received Franchisor status in November 2007. The trade name HOT&ROLL was introduced by 5 entrepreneurs who were made up of people with local & European expertise who came on board as additional investors. In Oct 2006 the HOT&ROLL brand was introduced and our 3 Quick Service Food Kiosks in the Klang Valley were merged and began carrying the HOT&ROLL logo. Today, HOT&ROLL has 17 flavours in our Crispy & Paratha Wrap line, and continuously researches & develops all sorts of mini-delicacies & finger foods. In November 2007 HOT&ROLL was granted Franchisor status by Malaysian Ministry of Domestic Trade, Co-operatives And Consumerism (MDTCC). Our main objective as a true Malaysian Franchiser is the SUCCESS of our Franchisees. By the end of 2011 we will have not less than 80 Hot & Roll kiosks throughout Malaysia. (The Hot & Roll Story, 2011)

4.1.1 Strength The modular HOT&ROLL store concept fits in any location (start small with a food-stand & grow big into a kiosk that is modular).Wholesome tasty treats for everyone; with a menu that caters to both Malaysian & International tastes. Wholesome tasty treats perfect for children, teens and the working adult. Hot, delicious wholesome tasty treats prepared in minutes with low or no ingredients wastage for day-long maximum sales exposure .It also easy market entry with a wide variety of freshly baked & delicious-tasting wholesome food items. The HOT&ROLL product line has high appeal to all consumer groups as a wholesome fulfilling meal or a welcome wholesome bite-On-the-Go. Its include solid backing, full product research & development support & continuous NEW product development by the international frozen food manufacturer, Kawan Food Berhad.Its also attractive HOT&ROLL Modular Concept that fits in any location with easy expansion at any time. HQ Support to all Franchisees through regular review meetings, training and marketing initiatives as and where necessary. It is a good strength because in Switzerland, their basic food items are include a huge selection of bread (white, whole wheat etc.), Also important are vegetables including beans, carrots, cauliflower, potatoes, spinach etc. so, HOT&ROLL is a new delicious meal for them to try because HOT&ROLL basics ingredients like paratha that are made from whole wheat flat bread thats highest health & food standards.. And also HOT&ROLL Wraps are made with top-grade pure Halal Chicken Meat and comes with a guarantee of freshness. Our ingredients is from high quality, like we are use cheese from The Australian cheeses that approved by the Australian Halal Food Services (AHFS). HOT&ROLL uses Lady's Choice Mayonnaise - a trusted brand for many years that produces many quality products with great consumer value. Lady's Choice Mayonnaise is made from cholesterol-free soya bean oil, vinegar, eggs, sugar, salt, spices and other ingredients

We use freshly shredded romaine lettuce, onions & parsley in our Wraps. Romaine lettuce and parsley are low in calories and excellent sources of Vitamin A, Vitamin K and lutein. Onions are good source of fiber, Vitamin C, Vitamin B6 and organosulfur compounds which keep blood pressure normal. Delicious additions that make each Wrap a healthy & tasty treat for individuals on the go!. (Franchise opportunity, 2011)

4.1.2 Weaknesses

There are some weaknesses of HOT& ROLL company that are lack of patent protection that could permit our competitors to copy our trade secrets and formulae and thus gain a competitive advantage. However, the competitive disadvantage could reduce our revenues and our profits. Switzerland has Double Taxation Treaties with about 100 other countries, more than 30 of these are based on the OECD model. The general effect of the treaties for non-residents from treaty countries is that they can obtain a partial or total refund of tax withheld by the Swiss paying agent. Although the full amount of withholding tax is deducted at source the difference can be re-claimed by the non resident from the Swiss tax authorities. Where there is no double taxation treaty in place withholding taxes deducted in the foreign jurisdiction on remittances paid to a Swiss entity give rise to a tax credit in Switzerland. Treaty abuse: A repayment of withholding taxes under the terms of a treaty will be denied where there has been "abuse". Abuse occurs when a foreign-controlled legal entity which is resident in Switzerland fails one of the four following tests. Firstly, the entity must have a reasonable debt/equity ratio (generally the total of all interest-bearing loans should not exceed 6 times the company's equity). Secondly, the entity must not pay excessive interest rates on debt (for the purposes of this test the accepted rate varies from time to time). Thirdly, the entity must not pay more than 50% of its income as management fees, interest or royalties to non residents. And fourthly, the entity must distribute at least 25% of the income which could be distributed as dividend. ( Double Tax Treaties, 2012)

4.1.3 Opportunity

Making the world a better place HOT&ROLL is a franchise that cares. We prioritize career opportunities & support for Single Mothers, Graduates & Entrepreneurs to enable them to improve the quality of life for their families. Through our franchise programme we hope to help people live better and to contribute more to society at large. We seek to strike a balance between profitability & community contributions in our business developments. We lead by example and our motto is "To do good is the greatest joy". One of our main shareholders Mr. John Madsen is a strong advocate of Corporate Social Responsibility. Mr. John Madsen is the chairman & long-time contributor to the Borneo Child Aid Society Sabah an organization that educate more than 10,500 underprivileged children yearly free of charge Our responsibility to society is also reflected in our business practices. In spite of the rising prices of flour, margarine, sugar and packaging materials it is our promise to ensure that our customers will always enjoy our wholesome treats that give them value for their money. That is the HOT&ROLL promise; We are the brand that truly cares. ( Making The World Better Place, 2011)

4.1.4 Threats

All businesses must abide by the laws, regulations, and bureaucracy in the host nation, including the United States and other capitalist countries. Examples of the obstacles an international corporation may encounter include complying with government restrictions on regulated professions and industries such as law, medicine, banking, insurance, transportation, and utilities. State and local governments may also require specific licenses for business and restrict foreign use of buildings. For all of these, proper compliance takes knowledge, time to learn, and expense. ( Wendy,2012) Technology is an important factor that can vary significantly, depending on the purpose of foreign investment and how important it is for technology to be standardized across business divisions. Malaysia governments urge investors to consider intermediate technology rather than the highly-automated equipment and processes of industrialized countries, in part because less advanced countries lack the infrastructure to support such technology. Companies may respond by searching for an appropriate technology that matches A country's resources, or it may choose to invest elsewhere. ( Wendy,2012) Technology has also contributed significantly to the spread of globalization and international expansion. Advances in technology enable international businesses to conduct international financial transactions, purchase products, analyze data rapidly, make capital improvements, and streamline communications, transportation, and distribution channels. ( Wendy,2012) Competition in the global marketplace continues to grow, particularly between the United States, the European Union, and Asian nations. For this reason, companies need to evaluate the competitive landscape of the host country. First, it is helpful to understand that the nature of competition varies by region and industry. Some nations support an atmosphere of pure competition; for example, there may be any number of sellers, each with relatively small market share, with competition based solely on price. Others may be more monopolistic. Understanding

the type of environment in which a firm will participate in its host country ensures the use of appropriate business practices( Wendy,2012) Malaysia has yet to implement competition policy or laws regulating the business economy. There are however several statutes which regulate trading and business activities as well as protecting consumer interests on a sector level. These statutes consist of about 30 laws relating to competition, each applicable to different sector of the economy. Formally there are only two sectors where competition regulation exists expressively, namely the communications and multimedia sector, and the energy sector. ( Wendy,2012)

REFERENCES.

Wendy. H. M. (n.d) .International Management. Encyclopedia for Business. Retrieved 2012, from http://www.referenceforbusiness.com/management/Gr-Int/InternationalManagement.html. Franchise opportunity. Hot & Roll. Retrieved 2011,from http://www.hotandroll.com/investwUs.php The Hot & Roll Story. Hot & Roll. Retrieved 2011, from http://www.hotandroll.com/ourStory.php International Business Malaysia. PDF. From http://org.ntnu.no/internationalbusiness/pdfs/Malaysia0809.pdf Switzerland: double Tax Treaties. Lowtax. Retrieved 2012, from http://www.lowtax.net/lowtax/html/jsw2tax.html Fact Sheet Labor law. Berne Economic Development Agency. From http://www.wfb.ch/public/fact_sheets/fs_2.09/en/labor_laws.pdf Countries and Their cultures. switzerland . Retrieved 2012. From http://www.myswissalps.com/switzerland/switzerland-language.asp?lang=EN Malaysian Trade, Import & Export. Economic Watch Content. Retrieved 2010. From , http://www.economywatch.com/world_economy/malaysia/export-import.html Cultural Aspect in Switzerland .e wateguide.info. retrieved 2009. From ,http://ewasteguide.info/ch_cultural_aspects Environmental protection in Switzerland. Federal administration. Retrieved from 2011. From http://www.uvek.admin.ch/themen/umwelt/00493/index.html?lang=en

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