Principles of Entrepreneurship ENT530-CASE STUDY PDF

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CASE STUDY: COMPANY ANALYSISABSTRAX®PRINCIPLES OF ENTREPRENEURSHIP (ENT530): CASE STUDYFACULTY & PROGRAMME: FSPPPBACHELOR IN SCIENCE ADMINISTRATION (AM228)SEMESTER : 3PROJECT TITLE : Case Study: Company Analysis of Abstrax®PREPARED BY : NOR ATIERAH BINTI MOHD ZAKI(2021119497)NURUL FATIEHAH NATAS...

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CASE STUDY: COMPANY ANALYSIS ABSTRAX® PRINCIPLES OF ENTREPRENEURSHIP (ENT530): CASE STUDY

FACULTY & PROGRAMME: FSPPP BACHELOR IN SCIENCE ADMINISTRATION (AM228) SEMESTER

:3

PROJECT TITLE

: Case Study: Company Analysis of Abstrax®

PREPARED BY

: NOR ATIERAH BINTI MOHD ZAKI (2021119497) NURUL FATIEHAH NATASYA BT MOHD ZULHAIZAM (2021149703) NUR ZAHIDAH SYAMIMI BT MOHD RASID (2021102189) REDHANI DAYANA ATHIRAH BT MOHD AKHRI (2021100671) NURSHAHEERA FATINIAFZA BT ALIAS (2021393327)

LECTURER

: DR LAW KUAN KHENG

AKNOWLEDGEMENT Although it is impossible to mention all individuals for their ideas and assistance in preparing this assignment, we particularly would like to express our appreciation to the following individuals. Firstly, a great of thankful to God, The Most Gracious who gave us strength to fulfil and complete this assignment. We also owe a great intellectual debt to our brilliant lecturer, Dr. Law Kuan Kheng for giving us an opportunity to complete this assignment besides giving us valuable suggestions for any difficulties that we are facing. First of all, we are grateful that we able managed to complete our final assessment within the time that had been given by our lecturer, Dr. Law Kuan Kheng. We also want to express sincerely thank to our lecturer for the guidance and encouragement to manage and complete this assignment. Besides, this assignment cannot be complete without effort and cooperation of our group members and discussion by our lecturer. A very warm thanks to our parents who hardly give a long-distance encouragement throughout completed this assignment. We also pleased to acknowledge our colleague for their helping and suggestion comments concerning to the editing process. Last but not least, we would like to express towards all individuals that contribute directly or indirectly regarding to finish this ENT 530 assignment.

TABLE OF CONTENTS BIL

CONTENTS Executive Summary

PAGE 1

1.0. Introduction 1.1.

Background of The Study

2

1.2.

Purpose of The Study

3

2.0. Company Information 2.1.

Background

4

2.2.

Organizational Structure

5

2.3.

Products

6

2.4.

Business, Marketing and Operational Strategy

7-8

2.5.

Financial Achievement

9-10

3.0. Company Analysis 3.1.

SWOT Analysis 3.1.1.

Strengths

3.1.2. Weaknesses 3.1.3. Opportunities

11-17

3.1.4. Threats

4.0. Findings and Discussion

18-19

5.0. Conclusion

20

6.0. References

21

7.0. Appendices

22-23

EXECUTIVE SUMMARY This is a Case Study report that conducted by a group of students to fulfil the requirement of subject Principles of Entrepreneurships (ENT530). In order to finish this case study, the groups of student need or required to choose one small or micro business. The group of students that consist of five members need to collect as much information as possible about the chosen company. The information of the company includes company background, product, marketing techniques and also the business performance. After that, the group needs to analyse the companies using SWOT analysis and identify the problem face by the business. Last part is, after finish all the findings, the groups of students also need to propose relevant solution to enhance or improve the business performance. In this case study, the group has decided to choose FF Wonderworks Enterprise (Abstrax®) in order to finish this case study. In order to collect the information regarding the company, an online interview was held using Google Meet. Through the online interview, the group managed to analyse the company performance using the SWOT analysis. Strength of the company in order to stay competent in this business is the customer trust and loyalty which means that the company able to produce a product that high with quality. However, there are some weaknesses and also threat that would give some impact to the company. In conclusion, with some threat and problems that the company, FF Wonderworks Enterprise have, the groups managed to come with some solution such as using media Massa to promote their product. Apart from that, the group also suggest that, the company should hire more employees so that they can gain more trust and the customer will stay loyal with their product.

1

1.0.

INTRODUCTION 1.1.

Background of The Study

In Principles of Entrepreneurship course (ENT530) we are given guideline and exposed to the business orientation. In this course, we will be conducting case study to any business or company. We also required to interview any company or business to get some information about the problem that faced by the company and we need to analyse the problem and find the solution. We also analyse the company using SWOT analysis which are strength, weaknesses, opportunities and threats. SWOT analysis will help us in analyse the company properly. The benefit of this case study is student will be more creative and knowledgeable in conducting business. Other than that, students will be more exposed on how company operating their business. Thus, this case study is the great medium to teach us on how every business problem can be solve. In Principle of Entrepreneurship, we will able to learn and think outside the box and this will lead to the creativity in thinking. In entrepreneurship, it is not only about getting the profit but it also creates opportunity, in stills confidence, ensures social justice and stimulates the economy. Studying entrepreneurship also helping us to learn about core business areas such as finance, sales, marketing, management and accounting, soft skills and many more. Furthermore, Principle of Entrepreneurship also enable us to critical thinking. A company is not obligated to run smoothly indefinitely, especially in today's market, which is more volatile than ever. Not to mention the fierce rivalry. Learning entrepreneurship provides students with numerous opportunities to practise critical thinking and board analysis. For example, in this case study we will do a findings and discussion to able us to practise critical thinking to find the problems and how the company should be able to solve it properly. This case study will benefit us as a student and give a great chance for us to grab the knowledge for future benefits from the entrepreneur since we have interview session with the company. In this case we are conducting case study of Abstrax® which is a business that provides apparel and clothing products. We are going to get the information about them and analyse the problem that faced by them.

2

1.2.

Purpose of The Study

In the case study we are able to analyse and think about something outside the box. We also can see the information that others cannot see for example, what the key success of entrepreneur since now we face many challenges in economy because of Pandemic Covid-19. So, in the case study we can see, how the business able to survive. Every busines has through ups and downs with the various challenges. First purpose of the study is to analyse the strength and the weakness of the company. With this analysis, we can give our opinion and apply the critical thinking in this study and can use it for the future. With this analysis, the weaknesses can be fixed and can be improve to make the company one of the companies that can compete globally. It also can help the economy development of the country. The business is not only focus on getting profit, but it can give many benefits to peoples and country. The study also can encourage the critical thinking which is one of the important parts in the business. Critical thinking can be used for solve the problem in the business and to make tough decisions. Critical thinking will support the smooth operations of the business because when the problems occur, critical thinking can help with the idea for solving the problems. Second purpose of the study is to learn more about the company and how they can still survive as the apparel and clothing company until now. Every company has their own strategies and uniqueness in exercising the business. With the case study we can know further about the company and of course there is something that they hold and encourage them to pursue the business until now although there are many challenges that face in every business. In every organization or company has risk and the risk management will differentiate every company. The ability to manage risk will help companies act more confidently on future business decisions. Last purpose of the study is to gain new knowledge. When we study about the features of the study, it allows us to practice it in our lives or in the future. In every case study, the analytic is necessary because it based on actual event. Case study forces us to approach the problem from a different angle in order to find a solution. For example, in this case study we need to analyse opportunities and threats which is external from the company itself. This allows us to think in new ways and aids in the creation of new knowledge each time we begin and complete a new case study. Furthermore, case studies enable us to think through multiple perspectives at the same time.

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2.0.

COMPANY INFORMATION 2.1.

Background

Abstrax® have two main people that cooperate together to grow up the brand in the market. First, the founder of Abstrax® is Fahmi Fabilah. Muhammad Fahmi bin Muhammad Fabilah is the young male entrepreneur in Malaysia when he started to establish this brand. He was born on 26 November 1982. Now, he was 38 years old. He studied at Cosmopoint International College of Technology. He was the prodigal designer. In 2008, he feels that it is the right time to launched his own brand which is known as Abstrax® Jingga on that time. The brand presented with his arts and ideas. He was inspired by the skate boarding and indie apparel scene. Then, he run the business himself. Second, the chief executive of this brand is Dr Faiz Izwan bin Anuar. He is from Sepang, Selangor. He was a full-time lecturer at UITM. He has Diploma and Degree in Tourism Marketing at UITM. Then, he pursues his study in Masters of Tourism Management in Rochester and also PhD in Tourism Management in Recreation Parts and Tourism Sciences from Texas A&M University. He started to know Abstrax® Jingga when he saw Mr Fahmi settling the clothing booth. He was interested on this brand because he believes this brand can grow successfully on future. ABSTRAX® JINGGA was fully belongs to Mr Fahmi, but he then cooperates with Dr Faiz on 2013 and started the partnership. They setup the Sdn. Bhd. when the chief executive come back from the United States. Dr Faiz once promoted the brand at the United States, then he found the pronunciation of JINGGA is quite difficult for people there. The name also is too long for a brand. Then, they rebrand it as Abstrax®. The name of Abstrax® by Mr Fahmi is come from the process of manipulated among colours. The name of JINGGA come from the combination of three main colours that have been choose which are white, pink and green. Nowadays, the key business of Abstrax® was categorized in Abstrax® Jingga and Abstrax® Max. It was divided because it is totally different views and directions. Abstrax® Jingga is for the streetwear and Abstrax® Max for the sportswear.

4

2.2.

Organizational Structure

FF WONDERWORKS ENTERPRISE (ABSTRAX®)

EN FAHMI FABILAH FOUNDER AND CEO

PUAN NADHIRAH MUDA ACCOUNTANT

There are only two layers of the organizational structure in FF Wonderwokrs Enterprise. FF Wonderworks Enterprise (Abstrax®) for now only have two employees which are En Fahmi Fabilah and his wife, Puan Nadhirah Muda. The most important part is, En Fahmi Fabilah, CEO of FF Wonderworks Enterprise is the main designer for the company that always come out with the good design in order to achieve the target of sale. Apart from that, En Fahmi Fabilah is assist by his wife, Puan Nadhirah Muda that acted as an accountant in this company. The cash flow will be control by his wife.

5

2.3.

Products

Abstrax®, one of famous brand of sportwear that produce by one of the famous local products in Malaysia under FF Wonderworks Enterprise. Under this management, Abstrax® have launched several products such as t-shirts, jerseys, pants, jackets and the accessories that covers hat, mask, bag and also lanyard. Basically, Abstrax® is more to the sportwear that get place in the Malaysian heart. All the products that has been launched by Abstrax® has their own uniqueness because of the design itself. Based on the reading at their own website, Abstrax® was founded with the elements which are art, design, philosophy and ideas. Apart from that, these products also have their own qualities, abstrax and creativity. For sure, the customers will fall in love to buy their product such as jerseys and also jackets. The strength of having that kind of collaboration is, Abstrax® can strengthen their brand. Malaysia Airlines (MAS) is one of the big companies in Malaysia that has been collaborate with Abstrax®. Through this collaboration, the collection at that time was so high and the demand also increased. The collection at that time known as MASterpiece that designated featuring the trademark which is Flying High. Other than Malaysia Airlines, Abstrax® also collaborate with Hujan and Bunkface, one of the most famous local band artists in Malaysia. Moreover, ambassadors also part of the element to strengthen their product. Mohammaduo Sumareh and YB Khairy Jamaluddin are the ambassador of Abstrax®. All in all, the collection from Abstrax® has sentimental values and also has unique design. We also know that there are so many brands and company that produce the same product which is focuses on the sportwear. The design of the product from Abstrax® that have their own sentimental value will also help to strengthen the product. The target groups or the audience for this product is mostly focus on the teenagers and also the sportwear’s fans. However, this product that has been produced by Abstrax® also suitable for all ages. This will make this product look strong. In order to make their brand well known, Abstrax® has their own social media and also website that will help the audience reach them. With the tagline of “Never Afraid”, this tagline will help highlight the brand that will make more recognise by the people. Last but not least, as we know that Abstrax® is focusing on the streetwear and also sportwear. The branding will help to focus on creating lifestyle brands inspired by powerful connection between consumers, fitness and healthy lifestyle. Indirectly, this will help or encourage the people to create a good lifestyle.

6

2.4.

Business, Marketing and Operational Strategy

First of all, before Mr Fahmi create Abstrax® Max towards the public, Mr Fahmi represent the streetwear local brand by introducing Abstrax® Jingga. Basically, Mr Fahmi see the opportunities on that time which is the younger generation want to look different, new, fashionable and also hipster when involving their clothing. So that, Mr Fahmi market the Abstrax® Jingga by introducing the unique design by himself. He exposes the brand using the design on the streetwear like t-shirts and at the same time gain the followers of the Abstrax® Jingga first. The strategy clearly stated that Mr Fahmi want to strengthen the Abstrax® Jingga brand among the public before going any further. Then, he separated into Abstrax® Max that are focusing on the sportswear. The followers of the Abstrax® Jingga help the Abstrax® Max to build its own legacy because the brand is already known and famous. Second, the marketing strategy that used by Abstrax® Company is by promote and selling through the media social. As we all know in the current era of globalization, where the internet is a necessity today to connect, communicate and get and tell information to others. In fact, today's mass media and social media are also a place for them to generate income by promoting their goods because almost all people have social media such as Instagram, Facebook and so on. It same with this company where they start their business through their social media account which is Instagram and it still use this platform until now and became their main marketing strategy and the place for them to interact and also attract more customer to buy their product. There are 3 main account Instagram that they used which are @abstraxjingga has 167 thousand followers, @abstraxmax has 18.5 thousand followers and @abtraxheadquarters has 38.3 thousand followers. During the interview session with Encik Fahmi he said that he is not directly affected by the pandemic COVID-19 but during the movement control order (MCO) they can generate more sell. It is because they do use social media platforms as their primary platform. Third, one of the operational strategies is the website. The website that have been organize currently the most beneficial because the customers can see clearly all the products that they wanted to buy. The Abstrax® Max website is easy to access because it is not complicated as the other business website. It shows all the products details, pictures, sizes prices and mores. The customers also can directly but the products through the website only. They did not have to WhatsApp or email to buy it. It can save the time. The availability of products also can be easier to know and all the products on the website have been categorizing properly.

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Fourth, collaboration is the active activity and the key of the Abstrax® Max. It is because the contribution of the other party will be enhancing the name of the Abstrax® Max itself. It also proves that the Abstrax® Max is trusted by the other company to work and cooperate. For example, Abstrax® Max have been collaborating and work together with Storebox, Petronas, Vamos and also Phantom in establishing the sportswear that represent high quality, unique design and comfort to wear. The current 2021 project that Abstrax® Max collaborate and work is with the Volta local sportswear brand. They produce new design of jersey and shoes that never Abstrax® Max produce before. So, the shoes that will be launch soon is the first shoes that represent Abstrax® Max since it was established. Last but not least, promoting their product by use the ambassador. Ambassador means someone famous that represent our product to others or someone can be influence to other people to buy our product. Nowadays this strategy is very important and successful strategy. There are a lot of product that use this strategy. For Abstrax® Max they use their main ambassador is Mohamadou Sumareh where he is the famous football player for Pahang football team and nowadays be the Johor’s football player. This strategy run where the ambassador wear or show our product and tag us at our Instagram it will make their fans will follow and buy our product that ambassador wear. It is the way how this strategy be run successful by that it will help our company to get more customer and income. For Abstrax® Max they also use our Minister of Science, Technology and Innovation Khairy Jamaluddin Abu Bakar or known as KJ as their ambassador during the launch of their new Abstrax jersey on 12 January 2020, THE PANTHER. Meanwhile for Abstrax® Jingga their main ambassador is Beto Kusyairy which is actor Malaysia.

8

2.5.

Financial Achievement

Before this Abstrax® did not get any attention by the community after Dr Faiz making marketi...