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FUNDAMENTALS OF ENTREPRENEURSHIP(ENT300)INDIVIDUAL CASE STUDY:RAMLY FOOD PROCESSING SDN BHDBA1195APREPARED BY:AISHAH NISA BINTI FAYROUZ(2017378281)PREPARED FOR:SIR MOHD AZLAN BIN ABD MAJIDiACKNOWLEDGEMENTFirst and foremost, praises and thanks to the Almighty, for His showers ofblessings throughout m...

Description

FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300)

INDIVIDUAL CASE STUDY: RAMLY FOOD PROCESSING SDN BHD

BA1195A

PREPARED BY: AISHAH NISA BINTI FAYROUZ (2017378281)

PREPARED FOR: SIR MOHD AZLAN BIN ABD MAJID i

ACKNOWLEDGEMENT First and foremost, praises and thanks to the Almighty, for His showers of blessings throughout my case study which is one of the requirements that need to be fulfil in the course work assessment for subject Fundamentals of Entrepreneurship. Special thanks to my parents in supporting me to complete this case study. Besides that, I would like to express my sincere appreciation to my Fundamentals of Entrepreneurship lecturer, Sir Mohd Azlan bin Abd Majid for his constant guidance and encouragement, without him this work would not have been possible, and I am truly grateful for his unwavering support. I wish to express my gratitude to the staff members of Ramly Food Processing Sdn Bhd who rendered their help during the period of my case study and providing me more detailed information about their company. Furthermore, I am immensely thankful to my friends for their elevating inspiration and kind supervision in the completion of my case study. Finally, I would like to mention here that I am greatly grateful to each and everybody who has been associated with my case study at any stage. I am very grateful to them for the effort and initiative that they have shown in my case study until successfully completed and I hope this case study report can give us little bit about entrepreneurship world.

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TABLE OF CONTENTS PAGE

COVER PAGE

i

ACKNOWLEDGEMENT

ii

TABLE OF CONTENT

iii - iv

LIST OF FIGURES

v

LIST OF TABLES

vi

EXECUTIVE SUMMARY

vi

1. INTRODUCTION 1.1 Background of the study

1

1.2 Purpose of study

2-3

1.3 Reasons of choosing the company

4

2. COMPANY INFORMATION 2.1 Background 2.2 Organizational structure 2.3 Business model 2.4 Products or services 2.5 Business, marketing, operational strategy 2.6 Financial achievements

3. COMPANY ANALYSIS

5 6 7 8 - 13 14 - 15 16 - 17

18 - 24

4. BUSINESS PROBLEM iii

4.1 Main issues/problems 4.2 Suggestion/solution for each issue

25 – 26 27 – 28

4.3 Outline the suggestion/solution into advantages & 29

disadvantages 5. RECCOMENDATION AND IMPROVEMENT

30

6. CONCLUSION

31

7. REFERENCES

32

8. APPENDICES

33

iv

LIST OF FIGURES

Figures

Description

Figure 2.1

Organizational Structure of Ramly Food Processing Sdn Bhd

Figure 2.2

Ramly’s Burger

Figure 2.3

Ramly’s Frankfurter

Figure 2.4

Ramly’s Nuggets

Figure 2.5

Ramly’s Chicken

Figure 2.6

Ramly’s Minced Meat

Figure 2.7

Company Performance

Figure 4.1

Online Article

Figure 4.2

A Facebook screenshot of the Ninja Joe’s “P.Ramly” burger

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LIST OF TABLES

Tables

Description

Table 2.1

Chicken Patty’s nutrient facts

Table 2.2

Beef Patty’s nutrient facts

Table 2.3

Buns’ nutrient facts

Table 2.4

Beef Frankfurter’s nutrient facts

Table 2.5

Chicken Nuggets’ nutrient facts

Table 2.6

Coated Chicken Drumettes nutrient facts

Table 2.7

Minced Beef’s nutrient facts

Table 4.1

Advantages and Disadvantages of the solutions

vi

EXECUTIVE SUMMARY The overview of this case study is I managed to get a lot of new knowledge and information about businesses and entrepreneurship world. I also get to analyse business’s products or services through the BMC analysis which comprises Business Model Canvas and SWOT analysis which contain of Strength, Weaknesses, Opportunity and Threat. In this case study, I also to see the existence problem that needs to be solved. There are also several solutions for the problems stated in the case study. In addition, I managed to find out Ramly’s financial statement and profit that they received throughout their business. Next, in this case study, there is a lot of information about Ramly Food Processing Sdn Bhd such as organizational structure and several franchises of the company. Lastly, This case study is prepared to obtain more information about the Small and Medium Enterprises (SME) in Malaysia. In today’s highly competitive environment, it is becoming difficult for SME Entrepreneurs to compete with non-small medium enterprises company. Therefore, we need to help the local community in our country.

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1. INTRODUCTION 1.1 Background of the study SME Corporation Malaysia (SME Corp. Malaysia) is the central coordinating agency (CCA) under the Ministry of Entrepreneur Development and Cooperatives (MEDAC) that coordinates the implementation of development programmes for small and medium enterprises (SMEs) across all related Ministries and agencies. Small and Medium Industries Development Corporation (SMIDEC) was formed under MITI to develop SMEs to be competitive in the global market on 2 May 1996. It includes small manufacturing facilities, small processing units, trading companies, exportimport companies, distribution, retailing, rental, and service company. In this modern world, it is not easy for small and medium entrepreneur to grow their business successfully. As for my case study, Ramly Food Processing Sdn Bhd is one of the companies that has been recognize as performance excellence Best Project Award (1982), Customer Development Award (1984), and Successful Entrepreneur Award (1992) by the Development Bank. According to SME Corp Malaysia, the sales turnover of service and other sectors for small enterprise is from RM300 000 to less than RM3 million or employees from 5 to less than 30 while for medium enterprises, sales turnover from RM3 million to not exceeding RM20 million or employees from 30 to not exceeding 75. Next, for manufacturing category, sales turnover from RM300 000 to less than RM15 million or employees from 5 to less than 75 in a small enterprise but for medium enterprise, sales turnover from RM15 million to not exceeding RM50 million or employees from 75 to not exceeding 200.

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1.2 Purpose of study The purpose of the study is to gain more knowledge about entrepreneurship and business world. The concept of entrepreneurship is when they involve not only the process that leads to the setting up of a business entity but also the expansion and development of an ongoing concern. It is also a process of innovation and new venture creation through individual, organizational, environmental, and process. In Malaysian economy, entrepreneurship is very important. In a business, it is vital to know the key of entrepreneurial motivation which are: High need for Achievement (high n Ach) Individual with high need for achievement found in most good business founder such as Dato’ Dr. Hj. Ramly Mokni who is a famous entrepreneur in Malaysia. High need for Power (high n Pow) This individual normally seek position of leadership. They potentially to be good managers, executive, and supervisors. High need for Affiliation (n Aff) Entrepreneurs need for affiliation to establish, maintain, or renew affective relationship with others. The potentially to be good social workers. As for Dato. Dr. Hj. Ramly Mokni, is a person who dare to take the risk openly in his business and thus, he will be ready to face any eventuality in the future. Besides that, an entrepreneur must have competence motivation. Thus, it will lead the entrepreneur to do a high-quality work. This is because, the inner satisfaction they feel and esteem they gain from others due to their competence. Next, the purpose of study is to know detailed about the company’s business plan, marketing plan, and operation plan.

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Firstly, based on what I have learned in Fundamentals of Entrepreneurship (ENT300), there are several reasons for preparing a business plan which are to study and evaluate the feasibility of the business, to convince venture capitalists, investors and bankers, and to be able to distribute business resources more effectively. Secondly, an entrepreneur needs to have a marketing plan for their business. Marketing plan is a comprehensive document that outlines a company's overall marketing effort. In order to create a marketing plan, there are nine steps to complete which are: Step 1: Setting marketing objectives Step 2: Determining product or service Step 3: Identifying target market Step 4: Analysing market trend and market size Step 5: Assessing competition Step 6: Forecasting sales Step 7: Developing marketing strategy Step 8: Planning for marketing personnel Step 9: Preparing marketing budget Lastly, operational plan is also an important part of the business. It will ensure the business is able to produce the product or to provide the services that the business had planned.

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1.3 Reasons of choosing the company The reasons why I choose Ramly Food Processing Sdn Bhd Company is because it is one of the companies that is listed under Small and Medium Enterprises. Besides that, there are several business problems that always happen to any businesses. For examples, problems in terms of financial management and customer service. As for Ramly Food Processing Sdn Bhd, the major problem faced by the company is that their products are said to be non-halal food and it was a big loss for the company during that time because customers tend to trust the news without knowing the truth. Another reason why I choose this company is because I want to figure out detailed about this company’s problems. Thus, I can provide any solutions that may help this company to grow further. Business problems faced by the company may prevent a business from executing strategy and achieving goals. In some cases, business problems also threaten the long-term survival of a firm. Lastly, I choose Ramly Company because of their quality product. In my opinion, the products produced is the best quality such as the patties but some ingredients used in the product is not good for customer’s health and because of that, I created this case study, to address what is the company’s problems and how I will be able to solve these problems by providing several solutions.

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2. COMPANY INFORMATION 2.1 Background

Ramly Food Processing Sdn Bhd is a functional food ingredients industry. It was established in 1984. Ramly Food Processing Sdn Bhd formerly known as Perusahaan Burger Ramly Mokni Sdn Bhd. The company owns a processing plant located in SME Industrial park, Mukim Batu, Kuala Lumpur. They offer career opportunities in management, production to product marketing and distribution. They also focus more on premium quality HALAL food that are very easy for people nowadays to use their products. There are several products that they produced and mostly fast food which are burger, frankfurter, cocktail, nuggets, chicken, and minced meat. Their aim is to develop a clean and good quality halal Western fast food chain in Malaysia. Ramly started a business selling burgers with his wife from street food stalls in 1979. While working as a butcher in a market, he discovered that it is unknown whether most fresh-meat sources were halal or not and because of that Ramly’s decide to produce a halal certified meat source for all Muslim consumers in Malaysia. All Ramly’s products are certified Halal by JAKIM. It is vital for a company to obtain a halal certificate from JAKIM especially for food and beverages industry or sector. This is because to ensure that all the ingredients used in the products are safe and harmless for Muslim consumers. The Ramly group currently exports their products to Singapore, Thailand, Indonesia, Myanmar, Cambodia, and Bangladesh. They also planning to export their products to other Southeast Asian countries such as Vietnam and Philippines. Besides that, Ramly group are looking to expand their business into the Middle Eastern and East Asian markets.

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2.2 Organizational Structure Ramly Food Processing Sdn Bhd has their own organizational structure and their board members are generally from their own family members. Dato Dr. Hj. Ramly Mokni and Datin Hjh. Shala Siah Abdul Manap started the company from humble beginning into one of the most respected and market leader of Halal quality frozen products in the country. These are their board of directors who are responsible and innovative person in this company.

Figure 2.1 Organizational Structure of Ramly Food Processing Sdn Bhd

2.3 Business Model 6

Ramly Food Processing Sdn Bhd has grown rapidly in a factory located at Bandar Tun Razak and now it is manufactured at IKS Batu Mukim, Kuala Lumpur. This factory is operating in 2019 with the cost of RM1 billion. Mostly the factory produced fast food such as burger and frozen food like frankfurter, nuggets, meat balls, fried chicken, buns, and mayonnaise. This factory has a high performance and sophisticated machine tools. So, the Ramly’s products will be more quality compared to other brand. Ramly Food Processing Sdn Bhd has their own franchise in order to reach their customers located in Taman Sri Rampai, Taman Maluri, Putrajaya, Mukim Batu, Klang Sentral, Bentong, Bandar Tun Razak, Bandar Botanik, and Bandar Baru Bangi. There are several advantages of franchising which are increased profitability, improved valuations, and reduced risk. For example, Ramly Food Processing Sdn Bhd can increase their profitability or revenue easily because there is 9 Ramly Halal Mart in Peninsular Malaysia. Since franchisors can depend on their franchisees to undertake, local marketing, hiring, training, accounting, payroll, and other human resources functions, the franchisor’s organization is typically much leaner and often leverages off the organization that's already in place to support company operations.

2.4 Products or Services 7

The company (Ramly Food Processing Sdn Bhd) is also known for its street stalls, which have sold the Ramly Burger in every state in Malaysia since 1979. All their products are considered a local favourite, especially by city dwellers. It is estimated that there are over 25 000 Ramly Burger stalls nationwide as of 2015, with the monthly average income about RM 5 000. These are the list of their products: Burger

Chicken Burger

Chicken Burger Grill

Chicken Burger Classic Oblong

Beef Burger

Beef Burger Grill

Beef Burger Classic Oblong

Oblong Lamb Burger Classic Oblong Figure 2.2 Ramly’s Burger

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These are the most popular product in Malaysia. Ask any Malaysian if they know what a Ramly Burger is, and the answer will most likely be an enthusiastic “YES”. Probably the best burger in town, this well known, addictive Malaysian food has taken the country by storm. The taste is rich compared to other brands. It is quite juicy, tender and tasty and good for fast breakfast. These are some nutrient facts in Ramly’s Burger: Chicken Patty Nutrients Calories (kcal) Carbohydrates (g) Protein (g) Fats (g)

Per 100g 280 4.0 17.1 21.3

Per serving 196 2.8 12.0 14.9

Table 2.1 Chicken Patty’s Nutrient Facts Beef Patty Nutrients Calories (kcal) Carbohydrates (g) Protein (g) Fats (g)

Per 100g 270 6.0 16.1 20.1

Per serving 135 3.0 8.1 10.1

Table 2.2 Beef Patty’s Nutrient Facts Buns Nutrients Calories (kcal) Carbohydrates (g) Protein (g) Fats (g)

Per 100g 280 57.1 11.2 1.1

Table 2.3 Buns’ Nutrient Facts

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Frankfurter

Chicken Frankfurter

Beef Frankfurter Jumbo Chicken Frankfurter

Jumbo Beef Frankfurter Figure 2.3 Ramly’s Frankfurter These beef frankfurters from Ramly are the perfect accompaniment to bread and sandwiches as they are not overly salty and can even be eaten on its own. The taste of the frankfurters is slightly different compared to the Chicken ones. The quality of the sausage is good, and its flavour is not only focus on flour but the flavour itself. Besides that, the texture is slightly softer and retains less of its shape as well. This is the nutrient facts in Ramly’s Frankfurter: Beef Frankfurter Nutrients Carbohydrates (g) Protein (g) Fats (g)

Per 100g 5.4 13.6 20.7

Per serving 1.8 4.6 7.0

Table 2.4 Beef Frankfurter’s Nutrient Facts

Nuggets 10

Chicken Nuggets Tempura Coated Chicken Fish Nuggets

Beef Nuggets

Figure 2.4 Ramly’s Nuggets Ramly's Tempura Chicken Nugget was awarded a Special Award at the MAHA expo. They received Excellent Product Award from the Department of Veterinary Malaysia. Ramly's Beef Nugget is among the pioneer in producing Beef Nugget in Malaysia. The taste of the nuggets is very firm, and the filling is thick and juicy. This is some nutrient facts in Ramly’s Nuggets: Chicken Nuggets Nutrients Carbohydrates (g) Protein (g) Fats (g)

Per serving 10.5 16.2 15.2

Table 2.5 Chicken Nuggets’ Nutrient Facts

Chicken

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Coated Fried Chicken Red Chicken Smoked Chicken

Coated Chicken Drumettes

Figure 2.5 Ramly’s Chicken This is also the most popular product from Ramly Food Processing Sdn Bhd. The way of preparing is very simple and easy. The flour is not too thick and because of that the coated fried chicken can be easily to cook compared to other brands. Furthermore, the price is very affordable and easy to find everywhere. This is nutrient facts in Ramly’s Chicken: Coated Chicken Drumettes Nutrients Carbohydrates (g) Protein (g) Fats (g)

Per serving 17.4 17.4 13.6

Table 2.6 Coated Chicken Drumettes’ Nutrient Facts

Minced Meat

12

Minced Chicken

Minced Beef

Figure 2.6 Ramly’s Minced Meat The meat is packed into a condensed, tightly knit pack and sold to consumers in the frozen aisle. This product also is a convenient fix when you don’t have the time to head out to the supermarket to get fresh meat and the meat has already been minced. They use a quality meat to make this product. There are several dishes that can be made from this product including meatballs, and spaghetti. It can be cooked easily and quickly. This is nutrient facts in Ramly’s Minced Meat: Minced Beef Nutrients Carbohydrates (g) Protein (g) Fats (g)

Per serving (g) 4.2 17.6 11.0

Table 2.7 Minced Beef’s Nutrient Facts

2.5 Business, Marketing, Operational Strategy 13

A business is an organization where people work together. In a business, people work to make and sell products or services. Other people buy the products and services. The business owner is the person who hires people for work. A business can earn profit for the products and services it offers. In this case, Ramly Food Processing Sdn Bhd is a well-known business that sells frozen food in many countries. Unfortunately, the burger (patties) has been banned in Singapore due to the meat coming from sources which are not on the Agri-Food and Veterinary Authority of Singapore approved list of Commercial Food Imports for Meats which could cause a potential health risk. This business is to ensure that all daily operations including transactions are implemented and executed ethically, professionally, and pursuant to the la...