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Future challenges foresee for Wing Zone

There are a few challenges that can be foreseen for the Wing Zone in the near future.

One is the weak currency exchange rate of other countries relative to the US Dollar. Wing

Zone currently has two branches in Malaysia. Wing Zone will find it hard to oen u !ore

branches in Malaysia as the Malaysia econo!y is not rogressing s!oothly"

!aking future

rofits and growth unlikely. The costs to oen a new franchise will be even !ore exensive

than it was reviously" !aking rosective franchisers hesitant about co!!encing business

in Malaysia. #ecently it has been reorted that the ringgit had droed to its lowest level in

$% years. &ccording to the 'inancial Ti!es" there is a ossibility of the Malaysian ringgit

sinking even lower than the current rate ().*+$, by the end of -+$. /ence" although !any

arties have exressed interest in oening u new franchises" the current exchange rates hasut a sto to these activities.

0esides" !aintaining its existing branches will be another challenge. &s new flavours

and varieties will attract !ore custo!ers" Wing Zone will have to create new flavours

fre1uently in order to grab the ublic2s attention. &ll Wing Zone branches are re1uired to use

roducts aroved by the US head1uarters. /ence" the !aterials used by Wing Zone

Malaysia are all i!orted goods. &s head1uarters co!es u with a new flavour" overseas

branches will only receive the! once or twice every 1uarter. 3n today2s co!etitive world"

this !ay not be 1uick enough for custo!ers" who exect to taste new flavours fre1uently.

This !ay lead to decreased custo!er share. Moreover" there is also the 1uestion of suiting the

flavours to local taste buds. 3n order to introduce a new flavour in Malaysia" the local Wing

Zone outlets will have to order direct fro! the US head1uarters" where the !ini!u! order

consists of -+ boxes where $ box costs around #M-++. With 4ST and custo!s duties levied

on the!" it will be a big loss to Wing Zone if the flavour ordered does not favour local

references. 'ro! the revious ti!es till the current ti!es it would not have been so obviousbut in the future as the econo!y is unredictable" Wing Zone !ight even have to shut down

their re!ises in Malaysia to recou losses.

& standard !eal at the current ti!e for the adults in Wing Zone costs about #M $.5+.

Due to 4ST (govern!ent services and tax, the rice of all !eals including beverages has

been increased. 3f the econo!y continues to erfor! badly in the future" Wing Zone !ight

have to increase the rice of their !eals even !ore to cover their cost of roduction. This will

be a great challenge to the future of Wing Zone because the ublic !ight not want to ay that

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!uch for a standard !eal. This will result in grievous losses" which !ay even cause the! to

go out of business.