ENT530 CASE Study ( Aween FOOD Processing SDN BHD) PDF

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UNIVERSITI TEKNOLOGI MARA CAWANGAN KEDAHPRINCIPLES OF ENTREPRENEURSHIP (ENT530)CASE STUDY : COMPANY ANALYSISAWEEN FOOD PROCESSING SDN BHDPREPARED BY :STUDENT NAMES STUDENT IDMUHAMMAD SYAHMI BIN ABDULLAH 2020964753NURFAZLIS ELISYA BINTI AHMAD FAIZUL 2020977121NUR HANIS NABILAH BT MOHD IZAM 2020964267...

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UNIVERSITI TEKNOLOGI MARA CAWANGAN KEDAH

PRINCIPLES OF ENTREPRENEURSHIP (ENT530)

CASE STUDY : COMPANY ANALYSIS AWEEN FOOD PROCESSING SDN BHD

PREPARED BY :

STUDENT NAMES

STUDENT ID

MUHAMMAD SYAHMI BIN ABDULLAH

2020964753

NURFAZLIS ELISYA BINTI AHMAD FAIZUL

2020977121

NUR HANIS NABILAH BT MOHD IZAM

2020964267

ANIS AIZA BINTI KHAZALI

2020963969

ARISA NAZIFA BINTI MAZRI

2020988355

KBA242-4B PREPARED FOR : SIR RAMLI BIN SAAD SUBMISSION DATE : 5/5/2021

ACKNOWLEDGEMENT First and foremost, we would like to express our heartfelt gratitude to Allah SWT for allowing us to successfully complete our Case Study with His guidance and blessings. Then, we would like to thank University Technology Mara (UiTM) Campus Merbok, Kedah for providing us with the ability to complete this task. Next, we would like to express our sincere gratitude to Sir Ramli Bin Saad, our Principle of Entrepreneurship (ENT530) lecturer, for providing us with this platform as well as continuous great support and encouragement during the semester. Despite the fact that we encountered some difficulties, his attention to imparting all of his expertise on this topic made this case study a breeze to complete. I will be unable to complete this case study without the assistance of sir. Furthermore, we owe a great deal of appreciation to our beloved teammates, who still stick together and work hard to complete a good task with all of the requisite support and obligations. I am hopeful that with all of our cooperation, we will be able to reap significant benefits from our community project. Next, we would like to express our heartfelt appreciation to our families, who did whatever they could to provide us with inspiration from the beginning to the end of our task.

Finally, we would like to thank Puan Mazurin Bt Nordin, the owner of Aween Food Processing Sdn Bhd who accepted our invitation to assist directly or indirectly to this case study We are very grateful to Puan Mazurin for agreeing to be interviewed and assist us in completing this task.

TABLE OF CONTENT

List of Figures

1

List of Tables

2

EXECUTIVE SUMMARY

3

1.0 INTRODUCTION 1.1 Background of The Study

4

1.2 Purpose of The Study

4

2.0 COMPANY INFORMATION 2.1 Background of The Company 2.1.1 Location of Business Operation 2.2 Organization Structure 2.3 Product/Services of The Company

5 6 7 8-9

2.4 Business Strategy

10

2.5 Marketing Strategy

10

2.6 Operational Strategy

11

2.7 Financial Achievement

11

3.0 COMPANY ANALYSIS 3.1 SWOT Analysis

12 - 16

4.0 FINDING AND DISCUSSIONS 4.1 Findings

17 - 18

4.2 Discussions

19

5.0 CONCLUSION

20

6.0 REFERENCES

21

7.0 APPENDICES

22 - 27

LIST OF FIGURES

Figure 1 : Logo of Aween Food Processing Sdn Bhd

5

Figure 2 : Location of Aween Food Processing Sdn Bhd

6

Figure 3 : Whatsapp Interview With Puan Aween, The Founder of Aween Food

22

Processing Sdn Bhd Figure 4 : SSM Certificate of Aween Food Processing Sdn Bhd

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Figure 5 : Awards Received by Aween Food Processing Sdn Bhd

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Figure 6 : Products from Aween Food Processing Sdn Bhd

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Figure 7 : Manufacturing Process of Aween Spices

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Figure 8 : Halal Certificate of Aween Food Processing Sdn Bhd

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1

LIST OF TABLES

Table 1 : Products of Aween Food Processing Sdn Bhd

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Table 2 : SWOT Analysis of Aween Food Processing Sdn Bhd

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2

EXECUTIVE SUMMARY Aween Food Processing Sdn Bhd is a company owned by Encik Nordin Salleh and Puan Maizureen Nordin. The company has a few staff in the management which are the Director, Marketing manager, the Administration, and the Production manager. They also have several staff under their production team. Aween Food Processing Sdn Bhd sells a variety of curry spices that suit the local palate. The curry spices are not only loved by Malay, but also other races such as Indian, Chinese, and many more. These products are suitable to eat with a variety of dishes such as rice, glutinous rice, and noodles. Products produced by Aween Food Processing were considered to be daily meals. Besides the curry spices, Aween Food Processing also generates other products such as fried batter and coco drinks. The reason why this company was able to develop and loved by many is due to the variety of spices produced by the company alongside with the other products mentioned. This study analyzes and evaluates the company's strategy, strengths, weaknesses, threats, and opportunities. It also listed the challenges and solutions to the problems that the organization is currently facing. There are many issues that have been analyzed in this article, and we have made recommendations to the company's problems.

3

1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY This Principles of Entrepreneurship course, or ENT530, is a subject that provides students with guidance and introduction to business orientation. Students in this course must do a case study on a Small and Medium Enterprises (SME) sector or organization. The students would assess the situation and list the solutions for any issues that the enterprise or organization encountered. This case study is very useful to students because it will introduce them to how companies operate and manage their businesses, as well as giving them ideas about how to be more innovative in conducting business. And this case study can be used to teach students how to solve problems. Besides, this case study was performed solely through an online Whatsapp interview with the owner of Aween Food Processing Sdn Bhd due to the outbreak of COVID-19.

1.2 PURPOSE OF THE STUDY The primary goal of performing this case study is to examine how an organization does business. Furthermore, this case study was performed to find issues that the company could be unaware of when running the business and to have the best remedy or advice for the company about how to solve their problems in order for their company to become more competitive in the future.

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2.0 COMPANY INFORMATION 2.1 BACKGROUND OF THE COMPANY

Figure 1: Logo of Aween Food Processing Sdn Bhd Aween Food Processing Sdn Bhd was owned by Nordin Salleh and Maizureen Nordin. The company was established on 3rd January in 2009 and was located at Jalan Kubang Rotan, Kampung Kubang Rotan, 06250 Alor Setar, Kedah. The owner of Aween Food Processing Sdn Bhd used to be the owner of Rempah Cap O but unfortunately, due to several problems encountered by Encik Nordin Salleh, the company was currently owned by someone else. The idea of establishing Aween Food Processing Sdn Bhd started back then in 2008 right after Puan Maizureen Nordin who was the daughter of Encik Nordin Salleh completed her studies in University Utara Malaysia (UUM). Puan Mazureen and Encik Nordin decided to form a new company to continue their curry spices legacy. The company was established with new management, new staff, and new recipes. The first ever products produced by Aween Food Processing Sdn Bhd are rempah kari ikan, rempah kari daging, rempah masak merah, and serbuk kari ikan kering. The packaging for the products is in two types which is in 25 gram and 250 gram. In 2010, the curry spices produced by Aween Food Processing Sdn Bhd was accepted by many, therefore the company decided to export the products to Brunei due to the demand from overseas customers. In 2010, after Aween Food Processing Sdn Bhd had expanded, the company decided to supplement new products which are serbuk kurma, serbuk kunyit, tepung ayam goreng, sup bunjut, and coco drink.

5

2.1.1 LOCATION OF BUSINESS OPERATION

Figure 2: Location of Aween Food Processing Sdn Bhd Aween Food Processing Sdn Bhd are located at Jalan Kubang Rotan, Kampung Kubang Rotan, 06250 Alor Setar, Kedah.

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2.2 ORGANIZATIONAL STRUCTURE

CHAIRMAN Nordin Bin Salleh

MANAGING DIRECTOR Mazureen Bt Nordin

SALESMAN

PRODUCTION MANAGER

ADMIN MANAGER Wafin Farihin

MARKETING MANAGER Mohd Akmal GENERAL WORKER

GENERAL WORKER

GENERAL WORKER

MACHINERY TECHNICIAN

OPERATOR

OPERATOR

OPERATOR

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2.3 PRODUCT/SERVICES OF THE COMPANY

Table 1 : Products of Aween Food Processing Sdn Bhd

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Aween Food Processing Sdn Bhd offered variety of products that consist of variety of curry spices such as serbuk kari ikan kering, serbuk kari masak merah, serbuk kari ikan dan udang, serbuk kari daging dan ayam, serbuk kurma ayam dan daging, tepung ayam goreng, serbuk kunyit, sup bunjut, and also coco drinks. Aween Food Processing Sdn Bhd offered hereditary recipes to their customers. Even though the products can be categorized as a common product in Malaysia, the demand for these products are still high and relevant because most of the dishes served are still using these products to enhance the flavor and taste of the food. In addition, these products developed not only in Malaysia but also Brunei due to the natural resources used by the company. They did not prescribe any preservative ingredients to produce these products to ensure the durability of the products. Due to this ingredient, the company was able to manufacture healthy food and gain profits. Next, as we know, curry is one of the common foods that suit the Malaysian palate, especially Malay and Indian. The reason why the company decided to produce these products is because they also want to market their products not only to Malay consumers but also to others which is Indian to preserve their culture.

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2.4 BUSINESS STRATEGY Aween Food Processing Sdn Bhd chooses the location of the business as she thinks that it is the most suitable location to set up their business. Aween Food Processing Sdn Bhd is located at Kuala Sungai, Mukim Kubang Rotan which is near to the residential areas. In order to expand the company business, Aween Food Processing Sdn Bhd has been exporting their products to Brunei Darussalam for five years which is in 2010 until 2015. Before this, Aween Food Processing Sdn Bhd only had five products but then in 2010, the company added in more fifteen products which accumulated twenty products produced by the company. Moreover, Aween Food Processing Sdn Bhd also do their businesses with other new companies which means other companies do their own products but the process of the products making are being made by Aween Food Processing Sdn Bhd. 2.5 MARKETING STRATEGY For the marketing, in the beginning of the business, Aween Food Processing Sdn Bhd finds their own salesman. Every day, the salesman will come to Aween Food Processing’s factory to take the stocks and distribute to the chosen shops and supermarkets in Kedah and Perlis.There are about twenty shops or supermarkets involved and every twenty days, the salesman must restock the products from Aween Food Processing and distribute to them. Beside Kedah and Perlis, Aween Food Processing Sdn Bhd appoints a sole distributor for every state such as Terengganu, Kelantan, Selangor and many more. Every sole distributor will appoint their own agents or dropshipper to promote the products and sell it to the customers. These agents and dropshipper promote the products by using social media platforms such as Facebook and Instagram. They believe that Facebook and Instagram is a good medium in promoting the business because Facebook and Instagram is a worldwide media social and a lot of people will know about Aween Food Processing’s product. By using social media as a medium, it could reduce their cost in marketing as they do not have to spend budget in distributing flyers and doing banners. Furthermore, when the company found out that some certain area that has low revenue in sales, the company helps these shops by giving small packs of the products for free and also cooks using the product and distributed to the customers as a food testing. By using this technique, it will help the shop to gain profit from Aween Food Processing’s product.

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2.6 OPERATIONAL STRATEGY

For the operational strategy, Aween Food Processing Sdn Bhd hire their employees who can work according to the standards set by the company with trustworthy and efficiency so that the product produced can be done on time. In a moment of time when the company figured out that they do not have enough workers, they hurriedly hired more part timer workers to meet the needs of time so that the product demand is not late to the customers. Next, since Aween Food Processing Sdn Bhd is a manufacturer of Original Equipment Manufacturer(OEM), the company had done some Research and Development(R&D) for every type of products the customers wanted so that the company can produce the products to fulfill the customers desire. For Aween Food Processing product’s users, the company asked for feedback from the customers through their salesman, agents and dropshipper so that the company can know what the current demand from the customers. Lastly, Aween Food Processing Sdn Bhd always do their best to make sure that their products are safely arrived to their customers. In Kedah and Perlis, the company uses direct salesmen from the factory to more easily monitor while outside Kedah and Perlis the company uses a sole distributor, under him to find their own sales team. This makes it easier for the company to monitor prices so that they do not play arbitrary prices and do not enter the area through another agent. 2.7 FINANCIAL ACHIEVEMENT

Aween Food Processing Sdn Bhd started operating their company in 2009. For the end of the year in 2009, the company had reached their net profit RM700,000. Furthermore, the company had a problem which was that the company was hit by a major flood and made the machines for the product completely damaged in 2010. The company had faced losses for a few years starting from 2010 until 2016 with their net profit less than RM700,000 but, in 2016, the company started to regain their net profit back to reach RM700,000 a year. Suddenly, in 2020, the company has managed to obtain extraordinary sales that exceeded the net profit of previous years.

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3.0 COMPANY ANALYSIS (SWOT)

STRENGTH

➔ Experienced

and

WEAKNESS

strong

management team

➔ Resources limitations ➔ Resistance to change in marketing

➔ A well-known brand name in the industry

strategy ➔ Lack of using modern technology in

➔ Uniqueness of the product

productions

OPPORTUNITIES

THREAT

➔ Huge market size

➔ Rising cost in raw materials

➔ Having few local competitors

➔ Changes in customer preference

➔ Government

encouragement

expand in foreign market

to

➔ Rising of competitors with similar products

Table 2 : SWOT Analysis of Aween Food Processing Sdn Bhd

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3.1 STRENGTH

3.1.1 Experienced and strong management team Aween Food Processing Sdn Bhd has a strong management team with extensive knowledge and expertise that can work together to achieve the company's goals and improve the brand. By having these strong and experienced teams, it can help the company to efficiently produce products that can also boost a company's profits.

3.1.2 A well-known brand name in the industry Aween Food Processing Sdn Bhd has been a well-known brand among the locals since its establishment. Aween Food Processing Sdn Bhd does not only attract malay consumers but also other races. This can be said so as the product can be found in any retail stores such as Lotus, AEON, or any grocery store. It has also expanded its product line in the ASEAN market, like Brunei. 3.1.3 Uniqueness of the product Aween Food Processing Sdn Bhd provided a high-quality product that was free from preservatives and made with premium ingredients to ensure that it lasted longer. Unlike other brands, Aween’s used natural raw materials to maintain the original recipe of the product.

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3.2 WEAKNESS

3.2.1 Resources limitations Aween Food Processing Sdn Bhd is having trouble seeking suppliers who can deliver high-quality goods at reasonable prices. Since they must minimize the quantity of product produced at one time, this may result in slow production.

3.2.2 Resistance to change in marketing strategy Aween Food Processing Sdn Bhd is resisting the transformation to a comprehensive marketing strategy. Since they are afraid of high costs, they depend on old-fashioned and underdeveloped marketing methods such as word-of-mouth, flyers, as well as truck and van advertisement. 3.2.3 Lack of using modern technology in productions Aween Food Processing Sdn Bhd is relying more on the human workforce compared to modern technology. This is due to the fact that certain manufacturing methods necessitate the use of humans rather than processing machines.

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3.3 OPPORTUNITIES

3.3.1 Huge market size Aween Food Processing Sdn Bhd is situated in a high-traffic area with a large population. Since there are so many retailers, we can find the products anywhere, whether in urban or rural areas.

3.3.2 Having few competitors Since there are fewer competitors in the northern regions, Aween Food Processing Sdn Bhd is advantageous. As Aween's products are widely available in the northern market, they may use this as an opportunity to attract interest and raise brand awareness, resulting in increased sales.

3.3.3 Government encouragement to expand in foreign market Through MEDAC, the Malaysian government assists local businesses in extending their product lines into international markets. By applying tp MEDAC, Aween Food Processing Berhad will become famous not only among Malaysian but also globally. Thus, this will help Aween Food Processing to generate more income.

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3.4 THREAT

3.4.1 Rising cost in raw material Since the market cannot be controlled, Aween Food Processing Sdn Bhd would have to accept future increases in raw material costs. Aween Food Processing Sdn Bhd has no influence over this factor because it is dependent on the country's economic performance.

3.4.2 Changes in customer preference Since people nowadays don't really cook at home due to work commitments, Aween Food Processing Sdn Bhd may face some demand issues. As a result, they prefer to buy ready-to-eat instant food because it is more convenient. This would result in a decline in demand for Aween's goods. 3.4.3 Rising of competitors with similar product The food industry is always competitive, as newcomers to the industry arise almost every day. This will have an effect on Aween Food Processing Sdn Bhd, as they will need to develop their products in order for customers to stick to their brand despite having many options.

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4.0 FINDINGS AND DISCUSSION 4.1 FINDINGS 4.1.1 Resources limitations Based on our findings in Aween Food Processing Sdn Bhd, we can see that the company faces several major problems throughout their business. The first one is Aween Food Processi...