case study

FUNDAMENTAL OF ENTREPRENEURSHIP (ENT300) CASE STUDY

Suzana’s Roti Canai 288, Rumah Kos Rendah, Jalan Intan, Bukit Besi, 23200, Dungun, Terengganu Sole Proprietor 

Prepared by:

 Name Khairul Fahmi Bin Ahmad Mas Rusli Muhammad Ikhwan Izzuddin Bin Khairuddin  Noor Elya Nashiewa Bt Shabarudin Eiman Amirah Bt Rozman  Nurul Shuhada Bt Sulaiman

Student No 2016471672 2016603666 2016449908 2016449482 2016658452

Prepared for : Mrs Rusnah Bt Ismail Date of submission : 28/11/2018

Group/Class EM1105C EM1105C EM1105C EM1105C EM1105C

TABLE OF CONTENT

1.0 Executive summary……………………………………………………………………..

1

2.0 Introduction …………………………………………………………………………….

2

3.0 Company information 3.1 Industry Profile……………………………………………………………………..

3-4

3.2 Company Information………………………………………………………………

5-7

4.0 Identification of main issues 4.1 Marketing activities…………………………………………………………………

8

4.2 Operation strategy………………………………………………………………….

8

4.3 Administration activities…………………………………………………………… activities……………………………………………………………

8

4.4 Financial achievement …..…………………………………………………………

8

4.5 Summarize of major problem………………………………………………………

9

5.0 Analysis of the issues 5.1 SWOT analysis……………………………………………………………………..

10-11

5.2 Business Model Canvas…………………………………………………………….

12-13

6.0 Suggestion on appropriate solution…………………………………………………….. solution……………………………………………………..  

14-15

7.0 Conclusion ……………………………………………………………………………...

16

8.0 References ……………………………………………………………………………...

17

9.0 Appendices………………………………………………………………………….….. Appendices………………………………………………………………………….…..  

18-20

EXECUTIVE SUMMARY The overview of this case study is that we are able to see the real life situation where we see the existence problem that needs to be solved. The restaurant that we took as our mentor is Suzana’s roti canai. They sell roti canai  that they develop through their experience. Their shop is located at Kg Bukit Besi and has 46 years of experiences and will keep going on. While studying for this mentor, we had identified a few problems in the business process. The restaurant faces with major problems such as marketing activities, operation activities, administration activities and financial activities. Problem in marketing activities that the shop does not have any marketing strategy. Next is the operation activities. The problem of restaurant is lack of staff. The restaurant has only two workers which is the owner and spreader and it occur high risk to the business if one of them are sick. Their service is slow due to no machine use because they prefer hand made dough . For administration activities, the shop does not keep any record of the business. Thus, with not having staffs, they should recruit another workers. Last but not least, in financial activities, the problem that they face is they does not maintain the flow of the cash. They have to make sure that their profit is more than the expenses. We analyzed these problem using SWOT and BMC as our tools to oversee the problems and suggest the solution to our mentor

1

INTRODUCTION Assalamualaikum, we are currently study at UiTM Kampus Bukit Besi in Terengganu. The course that we take is Diploma in Mechanical Engineering and out group consist of 5 member which are Shuhada, Nashiewa , Izzuddin , Eiman and Fahmi .. The reason why we are doing the case study is because it is in our ENT300 Syllabus. We are required to write a report based on our study which is our business mentor. The purpose of this case study is to provide a better understanding for us to asses our chosen  business plan. This case study is done to analyse in detail about a business for us to be able to manage one effectively and efficiently in the future. We studied a business in restaurants and food services industry. It is a restaurant called Suzana’s Roti Canai, taken from the owner’s name. We studied the background of the business and the process of rendering the service. We were able to assess our knowledge in entrepreneurship in this study. The purpose of this study is to know the problems faced by the owner in handling the business and to find solutions to help them cope with the challenges. We got to identify the problems after a careful observation and meeting the owner of the cafe. We started by meeting the owner of the restaurant and interviewed her to know more about the business.

2

3.0 COMPANY INFORMATION 3.1 Industry Profile 3.1.1 Background of industry In foodstuff content, it is more meaningful if the quality standard assures that food is suitable for consumption, processed in a hygiene manner, is nutritious and safe. This paper will focus on the Malaysian food industry development in terms of quality standards that are necessary to be given consideration in the production of food. This paper also concentrates on the principles of quality assurance in food processing which is required by the global market standards. Malaysia being a  part of this global market would like to set the quality standards that involve the processing of halal food. At present, the Malaysian government is using the global halal market stand as a brilliant opportunity to establish the country as a halal hub for halal products in this region. Seafood consumption in Malaysia is experiencing high growth, which is expected to continue. Restaurants sell considerable amounts of seafood and supermarkets are also expanding their seafood sales. Euromonitor forecast the total Malaysian fish and seafood market to reach 1,606 thousand tonnes in 2011.Consumption of fish and seafood is expected to grow in line with growth in overall disposable household income. Aquaculture is becoming economically more important as a way of increasing local fish production for food security. However, production is still very small when compared to capture fisheries: it contributes less than 0.2 percent to GDP.Food retail demands a wide range of different fish and seafood products. Wet markets are still the main channel for the fish and seafood distribution. However, this segment is highly localized. The wet markets get good support from housewives due to price and value for money. However, fish and seafood sales at modern retailers such as hypermarkets have increased significantly over recent years, targeting middle income groups and younger shoppers. Around 90 percent of imported fish and seafood from New Zealand is used in food service sector especially 4 to 5 star hotels. Malaysia is one of the leading tourist destinations in ASEAN region with 22 million visitors per annum and there are 200 hotels rated as 4 to 5 star in Malaysia.

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3.1.2 Trend Baked goods, especially bread and pastries, are essential products and treated as part of  breakfast. Baked goods are also affordable for most consumers, encouraging bread and pastries to  prosper. Baked goods are widely distributed to most of the modern and traditional trade channels, helping the products to be widespread and reach consumers easily. Players introduced new products such as flavour extensions and marketing campaigns boosted sales of baked goods in 2017. 3.1.3 Future Prospect Currently, roti canai has recorded strong growth and is expected to continue throughout the coming decades as it is a convenient medium and time savings to cook at home. Besides, this type of restaurant can be improve by doing shipping services, online and promotional services as it reaches the needs of consumers. However, prices are still a concern for many people as the economy is getting worse today. Therefore, cost-saving initiatives should be carried out to avoid the financial  problems of the restaurants.

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3.2 Company Background 3.2.1 Background of the mentor’s business Based on the information that had interviewed, the business was operated in sole proprietor. Sole proprietorship is a business that is owned and operated by a natural person (individual). This is the simplest form of business entity. The sole proprietorship is a legal entity. The business has no existence separate from the owner who is called the proprietor. Next, Suzana’s roti canai  that was located in Bukit Besi was established in 2001 and it produced a few type of product. For example;  Roti Canai Kosong, Roti Planta, Roti Sardine, Roti Tampal, Roti Telur and Roti Telur Bawang .

Suzana’s Roti Canai

Figure 1 Location of Suzana’s Roti canai

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3.2.2 Organizational Structure Suzana Owner

‘Ayah Cik’ Roti canai maker

3.2.3 Marketing Activities The table below shows for the products and provided by Suzana’s Roti Canai and the price of each product. The total product that they sale 6 types of roti canai with two types of gravy. PRODUCT

PRICE (RM)

1.  Roti Canai Kosong

1.00

2.  Roti Planta

1.30

3.  Roti Sardin

3.00

4.  Roti Telur

2.00

5.  Roti Tampal

2.00

6.  Roti Telur Bawang

2.20

3.2.4 Operation Activities The dough of roti canai was made using traditional way which is using hand by Ayah Cik. The raw material for the dough are flour, condensed milk, egg, and salt. He usually knead 10kg of flour, 2 can of condensed milk, a little of salt and 2 eggs that can produce 180 pieces of roti canai. Usually, the dough was prepared in the evening to be used for night and next morning session. The gravy was also prepared by Ayah Cik himself. The shop was operated by two employees only which are Ayah Cik and Cikna.

6

3.2.5 Administration Activities VISION

To be a well-known entrepreneur in Bukit Besi MISSION

To serve the best Roti Canai in the Bukit Besi 3.2.6 Financial Achievement Suzana’s roti canai spend about RM120.00 per week to make roti canai. They buy the raw material using the profit that they had gained during the sale. Besides, the place where they are selling was actually their own house. It has been renovated to achieved the current design. They spend about RM23 000 for the renovation itself. It was done step by step using the money gained from the sale. They did not apply any loan for their business. The profit was assumed to be double the price. REQUIREMENTS

COST

FIXED RAW MATERIAL 

Flour



RM2/kg



Condensed milk



RM2.30/tin



Salt



RM0.60/0.45kg



Egg



RM0.20/each

(Cooker use 10kg of flour, 2 tin of condensed milk, a little of salt and 2 eggs for 180 Roti Canai) OTHER EXPENSES 

Renovation



RM23,000



Cooking ware



RM500



Cooking oil



RM2.50/kg

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4.0 Identification Of Main Issues/ Business Problem 4.1 Marketing activities One of the problem that Suzana’s Roti Canai in marketing activities is that the store does not have a signboard. It has brought effect to the business because the customer might get confuse to

go to the shop. Besides, the customer would not know about what they are selling as they have no hint.Other than that, the shop does not have any marketing strategy.   They are just wait for the customer and serve them. They did not do any initiative to promote their shop. This make their shop unknown to the people outside. 4.2 Operation strategy The problem that they face in operation activities is lack of staff . The restaurant has only two workers which are the owner and spreader and it occur high risk to the business if one of them are sick. Besides, their service is slow due to  lack of staff   and no machine use because they prefer hand made dough. They choose to use traditional way instead of using machines. It will make the  production of roti canai  low. Then, they only serve a few type of gravy only . This problem happened due to lack of creativity and they does not have any courage to try something new. 4.3 Administration activities For administration activities, the shop does not keep any record of the invoice.  It will make their business not systematic. Thus, with not having staffs, they should recruit another workers. The other problem that has been encountered by her is  lack of space at the workplace . There was just enough space for 15 customers. 4.4 Financial activities In financial activities, the problem that they face is they does not maintain the flow of the cash. They have to make sure that their profit is more than the expenses. They use the profit to buy

the material. If the sale is decreased, they will lack financial source as they are relying on that  business to survive. Besides, The next problem that has been encountered is that the  price of raw material increase in every year.

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4.5 Summarize of major problem Every business has their own problem, same goes to our mentor’s business. The problem may be minor or major. Minor problem is a problem that does not effect on the business production compared to major problem. This major problem could give a high risk to business. The major problem that the Suzana’s roti canai is that the shop does not have any marketing strategy. This problem seem simple to people but it may cause some effect to the

 business. This problem makes their business not grow and stunted. A good marketing strategy can make their shop well known even to the people outside their area. Besides, the other major problem is lack of staff. This can effect their service. Lack of staff make their work even slower. If there are more staff, the management of the business become more systematic. Then, the problem in the shop is they do not keep any record of their business. They cannot see the ups and downs of their business since there are no record of the sale. They did not has any plan for their business. This cause their business in the same level without seeing the improvement.

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5.0 Analysis Of The Issues 5.1 SWOT Analysis Positive

Negative

Strengths

Weakness



Lack of competitors



Located far from city

Internal



Variety type of roti canai



Low marketing strategy

factor



Offering a lower price menu



Slow service



A lot of experience worker



Does not have staff



Hygiene



Serve a few type of gravy

Opportunities

Threats



Popular among the student



Increasing material cost

External



Offering delivery service



Currency fluctuations

factor



Easy to get suppliers



Crowded



Require a few staff only



Unstable financial



Develop new recipe



Holiday

Strength They lack of competitors because in this area there only a few roti canai seller. From that the owner can get many profit from selling roti canai. Next, offering low price because owner get the supply from a cheap, trustworthy supplier and lack of competitors. They still can get profit from selling low  price product. Roti Canai maker start this field since he was 20 years old. He learnt about roti canai at Coffee shop and how to "spread"  Roti Canai. So he have a lot of experience about Roti Canai making. The shop offer variety types of  Roti Canai such as Roti Canai Telur, Roti Canai Kosong,  Roti Canai Sardin and etc.

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Weakness The shop only serve a few type of gravy because of the gravy is a bit hard to make. Next, the shop is lack of marketing strategy. This is because the is located at countryside. The owner thought there's no need to do the promotion. Other than that the shop is lack of staff. It is because the owner open the shop at a certain hours. So the owner only use 2 employee including the owner. The other weaknesses is the shop provided slow service. Sometimes when many customers come to the shop and make the service even slower.

Opportunities The shop still can be develop by hiring many employee so the service can be faster. Next, the owner easily can find the supplier because The ingredient to make Roti Canai can get at any mart. Besides that, the shop is popular among student(UiTM) because only a few  Roti Canai  shop available at Bukit Besi. The offering delivery service so that selling rate increase. The owner interested to create a new recipe to make the Roti Canai and make it even more delicious.

Threat Increasing material cost can be a threat to the shop. It is because bad economy situation causes the  price of the ingredient become more expensive. When there many customer the shop lack of seat to offer to the customer. It makes the shop less fascinating. Currency fluctuation can also be a thread  because it can change the ingredient price. Other than that is unstable financial this due to lack of financial manager. By hiring a financial manager the business can be more efficient and stable. Lastly, when it come to holiday the amount of the customer will decreasing. It is because of many  people spending time with their family member at home. It will decrease the product selling.

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5.2 Business Model Canvas Key Partners  Retail

Key Activities  Manufacture

store

 Selling  Service

Key Resources

Value

Customer

Customer

Propositions

Relationships

Segments



Taste





Price



Service



Cleanliness

customer friendly



Personal



Villagers



Low

Raw material



Direct selling



Manpower



Mouth



Store



Equipment

to

mouth

Revenue Streams 

Raw material Utilities

12

income

families





Students

Channels

Cost Structure 



Profit of the selling

Business model canvas for Suzana’s roti canai  includes Key Partners, Key Activities, Key Resources, Value Propositions, Customer Relationships, Channels, Customer Segments, Cost Structure, and Revenue Streams. Firstly, the key partner for Suzana’s roti canai is retail store. They bought all the raw material such as flour, condensed milk, salt,and egg from retail store in Dungun. They make a comparison for the price and choose the store with the cheapes t price. Secondly, key activities  for the shop are manufacture, selling and service. They are the one that produce the roti canai and sell it at their shop. When there are shop, they should provide service which is send the roti canai to the customer and also at the payment counter. Thirdly, key resources  for the shop are raw material, manpower, store, and equipment. That is the assets that the shop must the business have in order to operate. Without one of those thing, the shop cannot operate. Fourthly, value proposition for the shop is taste, price, service, and cleanliness. That is what compelling about the shop. The taste of the roti canai  is delicious because of the experience that ayah cik,the roti canai  maker have which is 46 years experience. The price is cheaper than other shop because the  customer segment  are students, villagers, and low income family. So, they make the price suitable for them. Service provided was very good because of friendly attitude of Cikna. Customer relationship  that the show is customer friendly.They also keep the shop clean because it

 just in front of their house. Fifthly, the channel for shop are direct selling and mouth to mouth. They were direct selling at their shop which is in front of their house. Their shop was promoted by mouth to mouth which is their customer itself. They did not use any initiative in promoting their shop. Lastly, the cost structure are raw material and utilities. The business’ major cost drivers are raw material. They get the revenue stream from the profit of the selling. Their life are relying on the business and they income was from the business. If the sale is low,so it will be a big problem to them.

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6.0 Suggestion On Appropriate Solution Each problem has it own solution. It just need us to do our own improvement in order to be  better. To improve the marketing strategy, Cikna should  make a social media page   for their  business such as facebook and instagram page. This way could help their business known by others. People nowadays was a modern generation. Everything was searched using social media. This could  be applied to the tourist or traveler. When they are traveling to the place that had never been, they will make a research and this will help them find the thing that they want. The disadvantage of this solution is that they have to update about their shop in that page. Cikna and Ayah Cik were already old and they does not has interest in social media. Besides, their children live apart from them. So it is a bit difficult for them to manage the page. Besides, Cikna get the raw material from retail store in Dungun which is far from their place. This make the cost of their product high which require the cost for transportation. They should find a supplier such as wholesaler  to reduce the cost. Through this way,they can attract the customer with a lower price. Secondly, they need to hire new staff  to manage the business smoothly. They can either hire the villager or their own children. This can make their work faster as the contribution of work divided equally. The current service was a little bit slow because there are only 2 employee. It takes about 15 minutes for them to prepare the roti canai. Lastly, the problem that they face is that they did not has any record of their business. They should make a little calculation about the sale to be put into the report. This way can ensure the  buying and selling activities brings more profit to them. Business reports  document your progress and provide you with a means of comparing periods of time, project details, and your history of growth. While you may rely on a superior memory or the amount of profits you make each year to gauge your progress, the data you collect in reports can serve a number of important purposes. It can help you formulate your budget and marketing plans for the upcoming year. It also can allow you to realize which products or services are the most successful, and which markets you may have overlooked. You’ll find more reasons to consult the data you’ve collected as your business grows.

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Key Partners  Retail

Key Activities  Manufacture

store

 Wholesaler

 Selling  Service

Key Resources

Value

Customer

Customer

Propositions

Relationships

Segments



Taste





Price



Service



Cleanliness

Customer friendly



Personal

Raw material



Direct selling



Manpower



Cash



Store



Equipment

Villagers



Low

on

delivery 

Social media  page Revenue Streams 

Raw material





Utilities Staff

15

income

families





Students

Channels

Cost Structure 



Profit of the selling

7.0 CONCLUSION

In conclusion, by doing some researches that involve in this kind of business, we decided to choose Ayah Cik   as our mentor. Next, the main reason that we choose he as our mentor because he had about 46 years experiences in this business.

Apart from that, he had been facing so many challenges throughout ups and downs in order to be a successful

roti canai’ s

maker from what he had now. So, he was the right person to help us

in starting a new business about roti canai.

Last but not least, we hope that with his guides and advises, we could make our dreams  become reality to open a business and be successful young entrepreneurs like ayah cik.

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8.0 REFERENCES 

Oxacuk. 2018. Oxacuk. [Online]. [25

November

2018]. Available

from:

https://www.eship.ox.ac.uk/business-model-canvas-explained 

Googlecom. 2018. Googlecom. [Online]. [25

November

2018]. Available

from:

https://www.google.com/search?biw=1366 

Chroncom. 2018. Chroncom. [Online]. [27

November

2018]. Available

https://smallbusiness.chron.com/importance-business-reports-55843.html

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from:

9.0 APPENDICES

Figure 2 Registration certificate of business

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Figure 3 Roti canai workplace

Figure 4 Arrangement of the shop

19

Figure 5 Owner of the shop

20