Group Project - CASE Study PDF

Preview

Summary

GROUP PROJECT...

Description

HERNAN CORPORATION SDN BHD PRINCIPLES OF ENTREPRENEURSHIP (ENT530) : CASE STUDY FACULTY & PROGRAMME

: ACCOUNTING & BACHELOR OF ACCOUNTANCY (HONS)

GROUP

: NACAB2B

GROUP MEMBERS

: 1. NUR ADIBAH BINTI IZHARI (2019488682) 2. AINA SAHIRA BINTI MOHAMAD FADZIL (2019804516) 3. NUR EMYLIA NATASHA BINTI NOR HAIRUL (2019635342) 4. NURUL WAHIDAH BINTI MUHAMAD (2019708815) 5. NURUL FATANA BINTI ABDUL PATAH (2019479178) 6. NURFAIZATUL NADIA BINTI NURAN (2019450718)

LECTURER

: SIR MOHAMMED HARDY LOH BIN RAHIM

AKNOWLEDGMENT

Alhamdulillah, we are grateful to Allah S.W.T for completion of this Case Study as one of requirements that need to be accomplish in the course work assessment for this subject code ENT530. Special thanks to our family for supporting us to complete this case study. This case study has been prepared with full cooperation and commitment from the members. Besides, we would like to thank to our best lecturer, Sir Mohammed Hardy Loh bin Rahim that has given us the best guidance by teaching and providing useful information to us. Without the guidance, we might not be able to complete our case study. Furthermore, we could not be more grateful to be teach by a kind lecturer that willingly taking the time to give continuous consultation. Last but no least, thank you again for those who has helping us directly and indirectly to complete this case study. We are hoping that the knowledge and skills that we have learned can be applied and be used in the future.

TABLE OF CONTENT

PAGE 1. COVER PAGE 2. EXECUTIVE SUMMARY 3. INTRODUCTION 3.1 3.2 3.3

Background Of The Study

Problem Statement Purpose Of The Study

4. COMPANY INFORMATION 4.1 4.3 4.4 4.5 4.6

Background Organizational Structure Products/Services Business, marketing, operational strategy Financial achievements

5. COMPANY ANALYSIS 5.1

Business Model Canvas (BMC)

6. FINDINGS AND DISCUSSION 7. CONCLUSION 8. RECOMMENDATION AND IMPROVEMENT 9. REFERENCES 10. APPENDICES

EXECUTIVE SUMMARY

3. INTRODUCTION 3.1

Background Of The Study

The company that we choose for our case study is Hernan Corporation Sdn Bhd. This company is located at Bandar Puncak Alam, Selangor. This study is about to analyses a real-life situation where existing problems in the company need to be solve and try to find the best alternatives that can be applied to ensure the problems will be resolved. 3.2

Background Of The Study

Based on what we have studied on that company, we found that several problems that have been analyzed through the search which are lack of workmanship, the product variety is less (not more than 10) and high operating cost. Hence, we will brainstorming on how to Hernan Corporation Sdn Bhd can improve their processes. 3.3

Purpose of The Study

The purpose of the study is to describes an individual situation for example, a person, a business, or an organization in detail. Other than that, this case study is to investigate the key of successful for Hernan Corporation Sdn Bhd to success in their business and to look how they can face and solve the problem. This study also want to know the best way in solving the problem to have a better achievement.

4. COMPANY INFORMATION 4.1

Background

Hernan Corporation Sdn Bhd founder and director by Teo Lee Chu. She started as a small trading company in 1996, Hernan rose to prominence when it shipped its first batch of frozen durian to Australia in 2004. Fast forward to today, the company Teo built has grown into one of the biggest food trading and manufacturing empires in Malaysia with a turnover rate of over RM100mil. Backed by her strong belief in her products, Teo finds that durian is truly king in the food business. Hernan Corporation Sdn Bhd is a leading exporter of the finest quality of Malaysian food and frozen durian products. Over the years, it has grown by leaps and bound with its export business spreading to Australia, New Zealand and also China. Hernan Corporation is also the leading manufacturer and cold chain operator in producing frozen durian products and durian desserts. The company is equipped with excellent

4.2

Organizational Structure

DIRECTOR TEO LEE CHU

COO

CFO

TAN CHUAN HOE

VICTTOR

PRODUCTION

R&D

SALES & MARKETING

FINANCE

PURCHASING

ACCOUNT

4.3

Products/Services

With the goal to export high quality Malaysian food products, they started their business by manufacturing and exporting local premium products. Apart from producing Durian products from their own plantation, they also exporting various inhouse and distinctive local brands to international markets. Over the years, they were granted the ‘Sole Distributor’ rights of several distinctive local brands to export their products to the international markets. Here an example of Hernan’s product :

4.4

Business, marketing, operational strategy

Business strategy : Hernan Corporation is focuses on Malaysian’s favourite fruits. This strategy can narrow down the target market of that company. Thus, Hernan make a lot research and development to create more products that can meet its targeted customer demand. Not only snacks and desserts, Hernan also make strategy to frozen the durian for people who want durian on not durian’s season. Hernan also created paste and pulp for those people who want make product based on durian. Marketing strategy : Hernan Corporation used various kinds of media to make its brand visible to the potential customers. They expanded the market by spending a lot of money on advertisements such as newspapers, websites, facebook and more. On that way, customers can find the durian market very easy to obtain. Else, Hernan Corporation also have collaboration with big company of business such as MOA, MATRADE, FAMA and also work closely with MOH and DOA. Hernan also active to participated in more than 30 international Trade Fairs since 2005. Operation strategy: Hernan Corporation’s factory is registered with FAMA as a Durian Packing House and is fully comply with the rules and protocol for the export of durians to China. Good manufacturing practices with highest food safety standards and procedures are employed in this factory. Henan also is factory’s GMP certification is accredited (certified, monitored and audited) by the Ministry of Health Malaysia. At Hernan, quality is an indispensable part of our work ethics that is maintained at every level of production. The Islamic Development Department (Jakim) has issued halal certification to the company since it started food production seven years ago (2002).

4.5

Financial Achievements

Hernan Corporation Sdn Bhd achieved a turnover of RM42mil IN 2018, the director said, and is targeting RM160mil in revenue in three years’ time.

5. COMPANY ANALYSIS

6. FINDINGS AND DISCUSSION

 Findings Weakness :1. Factors that are weak in the preparation of durian paste are difficult to maintain the main material quality/taste of product from supplies to produce the product . The supplies obtained are also irregular in terms of taste, the taste of main material was changing according to the current weather factors. 2. The sales and marketing of the durian-based products in the overseas market. Some of the products offered by the company are frozen whole durian, durian paste, durian spring roll and durian dumpling. The company actively export frozen durian and frozen paste overseas. In the other hand, the sales of durian-based product such as pancakes and dumplings in the overseas market are not as high as the local sales. The company could have applied more innovative ways and promotions to boost the sales in the oversea market. The durian-based product could be the alternative ways to introduce the taste of the fruit to the overseas customer because people outside Malaysia may be not be familiar with the thorny fruit and did not want to try it. This way, it will increase the exposure of the taste of durian and attract more interest towards it. Strength :The strength of the Hernan Corporation is that through the care of their products, the company maintains the quality of their products with using high technologies storage to keep raw material to prevent damage to the main material (lack of flavor). Opportunity :The opportunity for the Hernan Corporation is that they have entered the Asian market where they have sent paste to Korea, this opportunity allows them to expand the market for their businesses nationwide.

Threat :The threat posed by this company is when there is a competition that produces the same product as them, Company only produces one product , and this is a major threat to Hernan Corporation Sdn Bhd.  Discussion The company should take action to boost the sales in the overseas market. The first alternative solution that can be applied by the company is to actively promote the durianbased product along with the whole fruit and paste. Nowadays the cheapest and simplest way to promote a product is by the internet, specifically social media. The marketing in the internet should include variations of products with creative advertisement to attract customers’ interest in the product. But the promotions through the internet could not be a very effective way because of there are wide choices of supplier that can be found online. The other approach that can be made to a better marketing in the overseas market is by holding an exhibition with few samples prepared to introduce the company’s product in the overseas targeted area. An exhibition is a great way to expose the products because the exposure and information are directly given to the future consumer. Other than the main objective of an exhibition which is to attract more buyers, the other reason is to gain trust from the future customers in dealing with the company. This approach might incurred high expenditure.

7. CONCLUSION

8. RECOMMENDATION AND IMPROVEMENT

9. REFERENCES

1. https://hernancorporation.fm.alibaba.com/company_profile.html 2. https://www.linkedin.com/company/hernan-corporation-sdn-bhd 3. https://www.thestar.com.my/business/smebiz/2018/12/19/queen-of-the-king-of-fruits/ 4. http://www.halal.gov.my/v4/directory/slm_viewdetail.php?comp_code=COMP-20121018-

173417&type=C 5. http://www.matrade.gov.my/en/about-matrade/media/press-releases/4679-digital-trade-

halal-value-chain-for-tokyo-olympic-2020-initiative-launched

10. APPENDICES Site visit to Hernan Corporation Sdn Bhd....