UBTE 2013 - Entrepreneurship Group Assignment

Universiti Tunku Abdul Rahman
Faculty of Business and Finance
(Academic Year 2021/2022)
MAY 2021 SEMESTER
UBTE 2013 ENTREPRENEURSHIP
GROUP ASSIGNMENT COVER
SHEET
Appendix II
Course Details
Course : Bachelor of Marketing (Hons)
Year and Semester : Year 3 Semester 1
Tutorial Group : T4
Tutor’s Name : Mr. Adi Wira Bin Mohd Zin
Lecturer’s Name : Mr. Adi Wira Bin Mohd Zin
Assignment Details
Topic : Proposal for Kedai Kopi Pun Sim
Due Date : 30th July 2021
Important Note : Submission of assignment is the responsibility of the students.
Student Details
Name Student ID
1. Chong Yun Rui 1903268
2. Choy Jey Ni 1801962
3. Lee Qi Xuan
4. Tan Yi Ko 1902325
5. Teh Zi Xiang 1901624
Assignment overall marks:

Universiti Tunku Abdul Rahman
Faculty of Business and Finance
(Academic Year 2020/2021)
MAY 2021 SEMESTER
UBTE 2013 ENTREPRENEURSHIP
MARKING SCHEME FOR GROUP
ASSIGNMENT
Appendix III
No. Assessment Marks
Allocation
Marks
Given
1 Company, Product, Service and Industry Background 2
2 Recognizing opportunities/techniques for generating ideas 3
3 Feasibility Analysis 8
4 Industry Analysis and Competitor Analysis 8
5 Pro-Forma Financial Statements and Funding Aspect 8
6 Business Model 8
7 Growth Strategies 5
8 Quality of the Written Assignment 3
Total Marks 45
Comments: _
_
_
_
Name of Marker : _ _
Signature of marker : _ _
Date : _ _

TABLE OF CONTENTS
CONTENTS PAGE NO.
1.0 Company, Product, Service & Industry Background 1
2.0 Opportunities & Techniques for Generating Ideas 2-4
3.0 Feasibility Analysis 5-9
4.0 Industry Analysis and Competitor Analysis 10-13
5.0 Pro-Forma Financial Statement & Funding Aspect 14-18
6.0 Business Model 19-25
7.0 Growth Strategy 26-27
REFERENCES 28-30
APPENDICES
-Figures
-Financial Statements (2019 & 2020)
-Interview Transcript
31-45

1.0 Company, Product, Service & Industry Background
Kedai Kopi Pun Sim is a restaurant owned by Lee Pei Sim in 1989. It is an old Chinese
restaurant located at Jalan Pasar, Bidor 35500, Perak, Malaysia. Its operation hours are from
5.30 am to 1.00 pm on every day except for Thursday. It is engaged in selling a series of
coffee such as “kopi kau”, white coffee, “kopi ais” and other beverages such as milo,
Horlicks and Chinese Tea. Also, it sells tradition local breakfast such as kaya butter toast,
half-boiled egg, etc. Besides, it also provides the takeaway services for customers which
allowed them to eat at home or at work. Ms Lee rented out her restaurant for another two
food stalls which sells signature “Chee Cheong Fun” and “pau” respectively (refer to
Appendix 1.0). Until today, Kedai Kopi Pun Sim is one of the famous tradition food
restaurants in Bidor with the signature “kopi kau” and “Chee Cheong Fun” (refer to
Appendix 1.1). Its target market are the customers who prefer having tradition breakfast at
morning market, secondary school students who likely to have breakfast before attending
school classes, and the customers who would like to take away the food and beverages for
their families after buying groceries from the morning wet market.
Before starting up her business, she went through a series of process in investigating the
technique of brewing a nice coffee, including doing primary research in other “kopitiam”. Ms
Lee’s husband also assisted her a lot in building the restaurant which includes financing,
business planning and so on. As she mainly sells her beverages in the restaurant, she opened
for other food stalls for rental. Therefore, when the customers having breakfast in the
restaurant, they will order food with the drinks as well. Hence, it creates the opportunity for
customers to order her drinks. Kedai Kopi Pun Sim has rented out for a noodles stall and a
“dim sum” stall. The noodles stall basically sells different types of noodles which includes
prawn noodles, side dishes and its signature “Chee Cheong Fun” while another “dim sum”
stall sells “pandan pau”, “vege pau”, “lo mai gai”, etc. Normally, customers will order
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noodles, side dishes alongside with the beverages as a complete breakfast or lunch (refer to
appendix 1.2).
2,0 Recognizing Opportunities/Techniques for Generating Ideas.
2.1 Observing Trends
2.1.1 Economic forces
Malaysia faced an economic downturn due to COVID-19 pandemic (Shah et al., 2020). When
the economy is poor, people not only have less money to spend, but they are also more
hesitant to spend the money they do have, because they are afraid that the economy will
worsen and that they will lose their jobs. Hence, customers become more price sensitive and
decide to buy only what they depend on for survival. A weak economy could provide
business opportunities for old food stall as they sell affordable food and beverages which
enable to help consumer to save money. Consumers may switch from restaurant to old food
stall for purchasing food and beverages due to the more affordable prices. However, instead
of dining out, people may prefer to increase consumption of ready-to-eat meals and snacks
during pandemic (Focus, 2020). Hence, Kedai Kopi Pun Sim could come out with different
set of breakfast meals packages which allows for taking away or even allow the customers
to customize their ideals set of breakfast meals at a valuable set meal price in order to attract
more price-sensitive customers. By doing so, Kedai Kopi Pun Sim also could generate high
profit margin by selling large volumes of products.
2.1.2 Social forces
Frequently, the existence of a product or service is due to the satisfaction of a societal need
rather than the more obvious need that the product fulfils. People would like dining outside or
consume ready-to-eat meals due to people's hectic schedules and insufficient time to prepare
their meals. Likewise, social networking sites like Facebook and Instagram are popular
because it acts as an intermediary which allows people to connect and communicate with
each other. Changes in societal trends have an impact on how companies act and prioritize
their goals. These shifts have an impact on how goods and services are developed and
marketed.
The social trends that Kedai Kopi Pun Sim could take into consideration are the increasing
interest in social networks. Nowadays, people spend most of the time on social media such as
Facebook, Instagram and Tiktok. As Bidor residents especially middle-aged customers are
more likely to use Facebook compared to other social media platforms, Kedai Kopi Pun Sim
could focus on implementing social media marketing on Facebook. After creating its own
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Facebook Pages, it could regularly update the latest advertisement and share it to the
“Bidor” public group in order to reach maximum of Bidorian (refer to appendix 2.0).
Besides, Kedai Kopi Pun Sim could collaborate with affiliate Facebook page to help them
advertise their products so that it could exposed to larger communities (refer to appendix 2.1).
Moreover, Kedai Kopi Pun Sim could use Facebook as a platform to offer order pickup
services to customers as it is more cost-effective. After Kedai Kopi Pun Sim creating its own
Facebook Pages, it could advertise their daily products offered and set different sections of
pick-up time on its own pages. By doing so, it enables to provide convenience to the
customers which allow them to order the food and beverages by leaving down their comment
or contacting the stall by phone number that stated on the pages. Customers could straight
away receive their ordered food once they reached the stall during the stated pickup time.
2.1.3 Technological advances
The system was made feasible by advancements in wireless technology. Most of the time,
technology is not the determining factor in recognizing business opportunities. Instead, the
key is to recognize how technology can be used to meet basic or evolving needs of the
companies. Technological advancements also offer opportunities to assist companies in doing
daily operation in a more efficient or effective manner. Nowadays, many small businesses
utilize technology in payment method by using digital wallet applications in money
transaction activities as it is user-friendly and convenience (Putri & Sumitra, 2020). During
the COVID-19 pandemic, as money changes hands frequently and it may consist of all sorts
of bacteria, people are encouraged to use e-wallet in order to reduce the chances of spreading
the viruses. Hence, Kedai Kopi Pun Sim could implement digital wallets payment method
such as Touch ‘n Go and Boost which provides another payment option for their customers.
It could reduce the risk of spreading the viruses as it allows customers to purchase the food
and beverages through scanning the QR codes without having any cash transaction.
Therefore, customers may feel safe to purchase their food and beverages as they allow for
using e-wallet applications.
2.2 Solving Problems
Due to COVID-19 pandemic, Kedai Kopi Pun Sim currently facing some problems in their
business. The first problem that Kedai Kopi Pun Sim faced is the sharp decline of
customers. During MCO period, with health and safety taking precedence over the love of
food, many customers were not able to dine-in at the stall. Even currently Kedai Kopi Pun
3

Sim is allowed to offer take away services, there are getting less customers due to limited
operation period which could only allow to operate from 8 am to 12pm and increasing
reported COVID-19 cases in Bidor. As the COVID-19 pandemic in Bidor are getting serious,
most customers are rarely step out of their house which lead to decreasing in the number of
customers.
In order to solve the first problem, Kedai Kopi Pun Sim could diversify its sales channels by
introducing delivery services. Kedai Kopi Pun Sim could partner with QuickSent which is
one of the online food delivery platforms that available at Bidor area (refer to appendix 2.2).
By offering delivery services, it could attract back the regular customers or even new
customers. This is because it could satisfy the needs of the customers who eager to having
their products but anxious of leaving their home. Customers could consume their products
without stepping out from their house as the food and drinks would be delivered to them.
The second problem is the increasing of cost expenses. Ms Lee claimed that the cost of the
purchase materials has increased during this period, however government did not allow food
stalls to increase the prices of their products and the suppliers still request them to make the
payment on time as usual. Moreover, Kedai Kopi Pun Sim have to pay for the variable costs
such as cleaning supplies, electricity, gas fuel, water charges, packages and so on. As
currently, only take away services are allowed, the expenses on packages have increased. In
addition, Kedai Kopi Pun Sim still have to pay fixed costs which includes licensed fee,
business renewal fee, rental fee which is the rental of outside area around the stall and so on
regardless the negatively impact of COVID-19 pandemic. Therefore, Kedai Kopi Pun Sim is
undergoing a hard period especially when the sales drop due to declining of customers.
In order to solve the second problem, Kedai Kopi Pun Sim could find the members of
parliament to assist for applying financial assistance from the government as she
mentioned that she is unfamiliar process of procedures during the interview. Moreover, the
owner of Kedai Kopi Pun Sim could negotiate with the suppliers about the payment
postponement or price adjustment during this COVID-19 pandemic period. Besides, if
Kedai Kopi Pun Sim would like to introduce order pick up and online delivery services, it
could narrow the physical area by ending its rental on the outside area around its stall.
Hence, it could decrease the burden of Kedai Kopi Pun Sim to afford those expenses.
Besides, Kedai Kopi Pun Sim could focus on marketing efforts in order to boost up its sales.
When the sales increase, it could increase the ability to afford the increasing cost of business.
For example, Kedai Kopi Pun Sim could introduce valuable set breakfast meals, implement
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social media advertising on Facebook and diversify to different sales channels which includes
take away services, order pick up services and delivery services.
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3.0 Feasibility Study
According to Kampira (2018), feasibility analysis is a way to analyze the practicality of the
business idea. Here, the four feasibility analysis to be analyzed are product/service feasibility,
industry/target market analysis, organizational feasibility, and financial feasibility.
3.1 Product / Service Feasibility Analysis
The product/service feasibility is to analyze the viability of the proposed products or services
to be implemented (Barringer & Ireland, 2019). The opportunities and ideas generated will be
analyzed in 2 sections which are the product/service desirability and product/service demand.
3.1.1 Product / Service Desirability
The first idea generated from the opportunities is to come out with different sets of
breakfast meals packages. During Movement Control Order (MCO), many people have less
or no income at all. Thus, due to the economic forces, the old food stalls with cheaper prices
may attract those people to consume in Kedai Kopi Pun Sim. Besides, by launching some
new breakfast meals packages, the customers could have more buying choices and not easily
feel bored. Which means the repurchase rate of customers could be increased.
The second idea is to upload the restaurant information to Facebook and offer the pickup
order service. Due to the pandemic COVID-19 lockdown order, the usage of social media
showed an increasing trend (Fernandes at el., 2020). Physical socialization activities are
restricted, thus most people spend more on social media to fulfil their social needs. If the
promotion is distributed to the Bidor online community or collaborates with affiliate pages,
the customer may be increased. Furthermore, the customers who use the pickup order service
could directly get their foods in the pickup time set by the food stall. Beside fast in speed, the
contact among people could also be minimized and lower the risk of contracting COVID-19.
The third idea is the implementation of e-Wallet. Due to the development of technology, the
e-Wallet payment method with cashless required appears to the public. The convenience of
using a smartphone to make payment gets the attention of many people. Moreover, the
touchless characteristic makes the e-Wallet becoming a preferable paying method during the
pandemic COVID-19. Besides, the encouragement of the government is also one of the
reasons why the e-Wallet is widely adopted by the public. Thus, the implementation of e-
Wallet payment methods could provide a sense of security along with technological
convenience.
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The last idea generated is the cooperation with the online food delivery platform. By
increasing the price and delivery fee, the customers could enjoy the food delivered directly to
their home. Moreover, it is an additional channel for Kedai Kopi Pun Sim to reach the
customers. The selling area will not be more restricted just around the food stall, it could
cover all the places the third-party delivery platform can reach.
3.1.2 Product / Service Demand
To understand the demand of the proposed products and services, a simple questionnaire
survey was done. With the help of Kedai Kopi Pun Sim’s owner, this little survey was
responded by 20 respondents, which means the statement may be low in accuracy. But it
could show the typical status the owner could get in touch with in her daily life. According to
Figure 1, 14 of the respondents will have breakfast in their daily life. Inside these 14
respondents, 8 of them are having breakfast every day (Figure 2). These two statements show
the high demand of breakfast. Besides, Figure 3 shows how respondents think about the
current choices of breakfast. 12 out of 20 respondents feel that the breakfast provided by
Kedai Kopi Pun Sim lacks choice. Thus, it shows there is a demand for expanding the meal
of breakfast.
Next, in Figure 4 show the respondents’ time length of using Facebook in a day. The average
time length is at least 2.2 hours per respondent. Which means, the promotion using Facebook
could be considered as a usable way. Furthermore, the willingness to use pickup order service
through Facebook has shown in Figure 5. It states that 50% of the respondents are willing to
use this kind of service if Kedai Kopi Pun Sim implements it in future.
For the aspect of e-Wallet, according to Ismail (2021), the e-Wallet user in Malaysia in the
year 2020 had come to about 40% and maybe higher now. In the survey conducted, 13 out of
20 respondents are using e-Wallet to make payments in their daily life (Figure 6). Thus, the e-
Wallet is concluded as high in demand.
Lastly, Figure 7 shows there are 14 respondents who are willing to use the online food
delivery service. According to Nathan (2020), the online food delivery platforms increased in
demand during the pandemic COVID-19. Even in the Recovery MCO, the delivery orders
were still high in number. These statements show the food delivery is high in demand and
maybe higher in the future.
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3.2 Industry / Target Market Feasibility Analysis
3.2.1 Industry Attractiveness
According to the Food & Beverages Industry Report Malaysia (2020), the food and beverages
industry is a fast-growing market. It is one of the largest contributors in the national account
in these few years. Besides, humans have to drink and eat to keep alive. Based on the
Maslow’s Hierarchy, the most important human basic needs consist of food, water, warmth,
and rest (Mcleod, 2020). Thus, in the national lockdown due to the pandemic COVID-19, the
food and beverages industry is still needed to open while the other industries that have not
related to human basic needs are forced to shut down. The industries that are not allowed to
operate may continue to suffer losses each day the MCO doesn’t end. The small and medium
corporations that are high in fixed cost will be the first to bear the brunt.
3.2.2 Target Market Attractiveness
The business of Kedai Kopi Pun Sim is the food service market. Food service means the
economic activities that serve the food to the people out of their home. Also based on the
Food & Beverages Industry Report Malaysia (2020), 31% of Malaysian are use their
disposable income to eat outside. As mentioned in industry attractiveness, the restaurants are
allowed to operate within a certain time range. The profit may be lower than normal, but the
business can be supported for a longer period.
3.3 Organizational Feasibility Analysis
3.3.1 Management Prowess
The owner of Kedai Kopi Pun Sim builds the business of food stalls with her own hands. The
passion to operate the business still exists even though it is already 32 years after the
founding. Besides, the food stall is her only income source, the thought to improve the
business is much stronger when the number of infections is increasing every day. Thus, they
are willing and passionate to implement the business ideas proposed.
3.3.2 Resource Sufficiency
Beside the owner, Kedai Kopi Pun Sim has only one worker who is 58 years old to assist in
the business operation. Because they have run the business for a long time, the new set of
breakfast could be handled easily by themselves or using their social connection. However, if
they want to adopt all other business ideas, they need to learn the function of Facebook, the e-
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Wallet payment process, and online food delivery order taking. If they think it is hard to
learn, they may have to hire an additional worker who is familiar with technology.
The location of the restaurant is just in front of the Bidor Bazaar. The people who go to or
leave from the bazaar have high probability to consume and rest for a while in Kedai Kopi
Pun Sim. Furthermore, there is a row of parking spaces between the bazaar and the restaurant.
So, the customers who use those parking spaces may raise their awareness when they are
hungry. Moreover, there are various stores around Kedai Kopi Pun Sim, those stores’ staffs
may also have their meals here. In addition, the food stall has had its loyal customers for 32
year running the business.
Furthermore, they are not familiar with the government policy and procedure, thus they
didn’t receive any support from the government no matter before or during the pandemic
COVID-19. Moreover, Kedai Kopi Pun Sim was able to make the payment to the supplier
within 30 days after receiving the payment invoice. But the payment postponable period had
been changed to 15 days from August 2020.
3.4 Financial Feasibility Analysis
3.4.1 Total Start-Up Cash Needed
First and foremost, for the new breakfast meals, the cost required is only the cost of material,
which is as much as RM300 to RM400 for a week. Additional cost about RM100 to RM200
if they want to make improvement. Assume that the new meals are sourced in the form of
finished goods supplied from a third party, the cost may be RM400 to RM500.
Furthermore, the promotion on Facebook does not need to spend any money. For the pickup
order service, the communication between Facebook users is also free of charge. But, using a
personal smartphone to take the order may make the owner feel annoyed due to the high
frequency usage. Thus, a new smartphone for business use is suggested. The cost is estimated
around RM1,999. In addition, the new smartphone could also be used to take orders from
online food delivery platforms. QuickSent is the chosen online food delivery platform and
there is not any fee charge to be a merchant. Besides, the receipt printer could be purchased
to support both the food delivery and pickup services. This receipt printer is around RM700
in price.
For the setup of e-Wallet, Touch ‘n Go and Boost are providing free setup costs to the
merchants. If the owner of Kedai Kopi Pun Sim has no idea how to deal with the
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technological stuff, she may have to hire a guy who is familiar with technology which may
require RM2500.
In short, the total cost for Kedai Kopi Pun Sim to implement all the business ideas is about
RM5500.
3.4.2 Financial Performance of Similar Businesses
It is difficult to search for a financial statement of a “kopitiam” that is similar to our business
ideas. Plus, the observation outside the similar store is not encouraged due to the pandemic
COVID-19. The financial performance of similar businesses may only be done through
speculating.
The business similar to Kedai Kopi Pun Sim is the Asian Delight located in Kampar. Asian
Delight offers different types of meals and beverages and it has its own Facebook page. The
e-Wallet, pickup order, and online food delivery service also adopted by Asian Delight.
Besides the three owners coming from the same family, they have two more workers hired.
They faced the same problem as Kedai Kopi Pun Sim in pandemic COVID-19. But, with the
great effort of adapting to the social media, e-Wallet, and food delivery platform, they
manage to continue running the business. Thus, the Kedai Kopi Pun Sim is estimated to have
good financial performance after implemented the business ideas proposed.
3.4.3 Overall Financial Attractiveness of the Proposed Venture
With the utilization of online food delivery platforms, the sales and revenue may rise rapidly
in the first few months because of the consumption of loyal customers. As long as the quality
of products are remaining just like before the pandemic COVID-19, the review and rating of
Kedai Kopi Pun Sim will be increased. The merchants that have high reputation will attract
more people to buy their product and the sales and revenue will increase stably. Besides,
there are new breakfast meals launched and it may increase the customers’ rate of return to
consume the products they haven’t try before.
Moreover, after the pandemic COVID-19, ordering food using online food delivery platforms
may be a new norm to some customers (Nathan, 2020). At the same time, the customers who
are unfamiliar with technology will go to the physical stores. These two groups of customers
may increase Kedai Kopi Pun Sim’s sales and revenue again.
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Furthermore, there will be a traveling trend after the pandemic COVID-19. If the
advertisement and promotion on Facebook is doing well, it may attract many tourists to
patronize here. The promotion on the affiliate pages that introduce the fine food may create
an effective result.
In conclusion, the business ideas generated could help Kedai Kopi Pun Sim to run the
business during pandemic COVID-19 and form high attractiveness in financial aspect.
4.0 Industry Analysis
4.1 Food and beverage industry in Malaysia
Malaysians' enthusiasm for food has produced a huge market in the food and beverage
industry. The food and beverage industry has developed in recent decades due to its high
profit potentials. It has a great deal more to offer tourists and locals who dine out. To
stimulate people’s taste buds, the food and beverage industry provides consumers with its
quality of food and great taste (Yeo & Leu, 2014). Therefore, Malaysia's Food and Beverage
Industry (F&B) has been identified as a rapidly developing industry and a significant
contributor to the country's economic growth. The industry is dominated by small and
medium enterprises (SMEs).
Industry analysis helps businesses to identify their organization's threats and opportunities.
Porter's five forces model is a critical tool that entrepreneurs use to understand the industry's
structure and profitability. The five competitive forces include the threats of substitutes, the
threat of new entrants, rivalry among existing firms, the bargaining power of suppliers and
the bargaining power of buyers. Each of the porter’s five forces influences the average rate of
return for companies in an industry by imposing a profit constraint on the industry (Barringer
& Ireland, 2021).
4.1.1 Threats of substitutes
The threats of substitution is the availability of other products that customers may acquire
outside the industry. Typically, when the threat of substitute is low, the industry is more
appealing. (Barringer & Ireland, 2021). The essence of life is food and beverages. Therefore,
the threats of substitute is low in the food and beverages industry. Trends in eating and
drinking may alter from time to time, but no substitute can completely replace the business.
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In term of traditional cafe business, the threats of substitute products in the food and
beverages business is also low although there are competition from those western cafe such
as Starbucks. The traditional cafe business still remain firm among the mainstream due to its
affordable price and the taste of local food which match the customers’ taste buds.
There are many people prefer the “kopitiam” that provides the local food and beverages such
as those ‘kopi ais’, kaya toast and half boiled egg which differs from western-style coffee
shop. Those food and beverages are the ‘stars’ of their menu list.
4.1.2 Threat of new entrants
The intensity of new entrants into a market has an impact on a company's strength (Team,
2021). According to Barringer and Ireland (2021), the industries are more attractive when the
threat is low. This indicates that rivals will have a great difficulty entering this industry and
effectively copying what the insiders are doing to earn profits.
However, the threat of new entrants in food and beverages industry is high. Firstly, the
requirement of the capital is relatively low as compare to other industries. It is due to the low
cost of equipment that is needed. Besides, the cost incurred in the research and development
to start the business is also lower than other industry. There is less demand in terms of the
resources and capital in food and beverage industry. As a result, the industry appears to be
profitable. Secondly, there are low barriers to entry in this industry since the need of
expertise is easily acquired by the new entrants. For example, newcomers to “kopitiam”
will find it simple to become familiar with the majority of the business operation. Acquiring
the necessary knowledge and skills in the preparation of toast and coffee is not difficult.
4.1.3 Rivalry among existing firms
In most industries, the degree of rivalry among existing competitors is one of the most
important drivers of industry profitability. When there is intense competition and prices are
driven below the cost level, industries-wide losses may result. The industry, on the other
hand, is more appealing when competition is less fierce and price competitiveness is
moderate (Barringer & Ireland, 2021).
In terms of food and beverage industry, it is characterized by fierce rivalry. Firstly, this is
determined by the number and balance of competitors. There are large numbers of
competitors within this industry. High levels of competitive competition might be seen as a
threat since it reduces the profit and lowers the pricing. Besides, the degree of difference
between products is also one of the primary factors that determine the intensity of the rivalry
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among existing firms in industry. Given the fact that many businesses sell the similar items or
imitations rapidly, product differentiation is difficult. For instance, the traditional coffee
business are offering the similar products in the menu list such as the traditional coffee and
toast. For business to differentiate with other competitors, they should offer other local food
as much as possible. Consequently, businesses have found themselves involved in price wars
and competing on the basis of diminishing profit margins in such a saturated marketplace.
4.1.4 Bargaining power of suppliers
Suppliers’ bargaining power is referred to the pressure exerted by suppliers on business by
increasing prices, reducing quality or reducing the availability of products. It address the ease
of suppliers to raise to cost of inputs (Team, 2021). In general, industries are more attractive
when the bargaining power of suppliers is low. In any industry, it is critical to evaluate the
power of suppliers because they are the primary source of a company's competitive
advantage.
In term of traditional coffee business, the bargaining power of suppliers is low. The
switching cost of buyers is low, they can easily switch to other suppliers. This is due to the
price of the ingredients needed for operating the business are standardized. For example,
the ingredients used by the traditional coffee business such as eggs and bread are not scarce.
It has many substitutes because of the large number of existing suppliers in the local food
and beverage industry. Therefore, suppliers in the food and beverage industry have resulted
in a relatively low bargaining power.
4.1.5 Bargaining power of buyers
The bargaining power of buyers refer to consumers may exert negotiating power on
businesses by pressuring them to offer higher-quality goods, better customer service, and
cheaper pricing in the industry. The industries considered more attractive when the
bargaining power of buyer is low.
The bargaining power of buyers is high in the food and beverage industry. This is due to the
low switching costs. Customers may make their selections based on the quality of the meal
as well as the pricing, with a minimal switching cost. Customers could find it simple to move
to a different service provider. The threat exists as there is a lot of business providing the
comparable products. Customers have the ability to compare products and services across
various rivals. Customers who are price sensitive, for example, might prefer to pick the less
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expensive alternatives. Thus, the traditional local businesses must be mindful of their
customers' "purchasing power" if they are to stay competitive in their market.
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4.2 Competitor Analysis
Name Kedai Kopi
Pun Sim
Restaurant
Soon Kee
Kopi Kedai
Fong Kong Kee
Restaurant Erat
Establish
year
1989 1991 1978 1995
Operating
hour
5.30am-1.00pm 6am-11.30am 6am-11am 6.30am-11am
Main
features
Quality products
and services at
affordable prices
High quality
and friendly
staff
One of the
earliest
restaurants in
Bidor
Wide product
offerings
Place In front of Bidor
Wet Market
Opposite Bidor
wet market
Inside Bidor wet
market
Near residential
area
Product
offerings
Beverages,
traditional toast,
noodles, Chee
Cheong Fun,
Pau, Lomaigai
Beverages,
traditional toast,
Chee Cheong
Fun
Beverage,
traditional toast,
noodles,
Beverages,
traditional toast,
noodles, Yong tao
fu, Chee Cheong
Fun
Strength 1. Popular to
local community
2. high ratings
on review
websites
1. Prompt and
friendly service
1. Clean and
friendly
environment
2. good quality of
food
1. own a webpage
on social media
platforms
2. high exposure
location
Weakness 1. competitors is
located nearby
2. less attractive
design
1. Low
exposure due to
poor marketing
2. limited seat
provided
1. Long waiting
duration
2. Less food
selection as
compare to other
competitors
1. Loud and
packed
environment
2. car emissions
affect dining
environment
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5.0 Pro-Forma Financial Statement & Funding Aspect
Kedai Kopi Pun Sim
Pro Forma Income Statement
2020
Current
2021
Projected
2022
Projected
2023
Projected
RM RM RM RM
Sales 88,744.00 78,600.00 104,700.00 150,500.00
Cost of Sales 42,290.00 30,400.00 47,900.00 71,300.00
Gross Profit 46,454.00 48,200.00 56,800.00 79,200.00
Other Income
Stall Rental Received 2,800.00 4,200.00 5,040.00 5,040.00
49,254.00 52,400.00 61,840.00 84,240.00
Operating Expenses
B.R. Renewal Fees 60.00 60.00 60.00 60.00
Cleaning Supplies 200.00 100.00 200.00 330.00
Depreciation 154.00 408.00 368.00 331.00
Utilities 2,297.00 2,450.00 3,000.00 4,500.00
Gas Fuel 1,612.00 1,100.00 1,900.00 2,800.00
License Fees 360.00 360.00 360.00 360.00
Packages 380.00 700.00 1,400.00 2,800.00
Rental Paid 6,360.00 6,300.00 - -
Wages 8,773.00 8,800.00 16,000.00 18,000.00
Advertising Charges - 800.00 1,400.00 1,800.00
Delivery Charges - 500.00 800.00 1,200.00
Printing and Stationery - 60.00 150.00 180.00
Phone and Internet Charges - 300.00 720.00 720.00
Total Operating Expenses 20,196.00 21,938.00 26,358.00 33,081.00
Income before income taxes 29,058.00 30,462.00 35,482.00 51,159.00
Income taxes expenses - 500.00 650.00 2,000.00
Net Income 29,058.00 29,962.00 34,832.00 49,159.00
16

Pro Forma Balance Sheet
17

2020
Current
2021
Projected
2022
Projected
2023
Projected
RM RM RM RM
Assets
Current assets
Cash and cash equivalents
7,804.
00
10,374.0
0
5,474.0
0 4,734.00
Electrical Deposit
300.
00
300.0
0
300.0
0 300.00
Inventory
870.
00
970.0
0
1,070.0
0 1,300.00
Total Current Assets
8,974.
00
11,644.0
0
6,844.0
0 6,334.00
Non-current assets
Furniture and Fittings
1,048.
00
943.0
0
849.0
0 764.00
Stainless steel equipment
488.
00
439.0
0
395.0
0 355.00
Equipment -
2,700.0
0
2,430.0
0 2,187.00
Renovation
10,787.
00
10,787.0
0
10,787.0
0 10,787.00
12,323.
00
14,869.0
0
14,461.0
0 14,093.00
Less: Accumulated Depreciation
154.
00 408.00 368.00 331.00
Total non-current assets
12,169.
00
14,461.0
0
14,093.0
0 13,762.00
Total assets
21,143.
00
26,105.0
0
20,937.0
0 20,096.00
Liabilities and Capital
Capital
20,000.
00
20,000.0
0
20,000.0
0 20,000.00
CR Balance B/F as per last B/Sheet
7,085.
00
1,143.0
0
6,105.0
0 937.00
Earning Profit
29,058.
00
29,962.0
0
34,832.0
0 49,159.00
36,143.
00
31,105.0
0
40,937.0
0 50,096.00
Less: Drawings
35,000.
00 25,000.00 40,000.00 50,000.00
CR Balance C/F as per last B/Sheet
1,143.
00
6,105.0
0
937.0
0 96.00
Total Liabilities and Capital
21,143.
00
26,105.0
0
20,937.0
0 20,096.00
Pro Forma Cash Flow
18

2020
Current
2021
Projected
2022
Projected
2023
Projected
Cash flow from operation activities
Net Income before tax
29,058.
00
30,462.0
0
35,482.0
0
51,159.0
0
Add:
Depreciation of furniture and fittings
105.
00
94.0
0
85.0
0
76.0
0
Depreciation of stainless-steel
equipment
49.
00
44.0
0
40.0
0
36.0
0
Depreciation of equipment -
270.0
0
243.0
0
219.0
0
Depreciation of renovation - - - -
Increase (decrease) in inventory
580.
00
(100.0
0)
(100.0
0)
(230.0
0)
Net cash from operation activities
29,792.
00
30,770.0
0
35,750.0
0
51,260.0
0
Cash flows from investing activities
Purchase of equipment -
(2,700.00
) - -
Net cash used in investing activities -
(2,700.0
0) - -
Cash flows from financing activities
Drawings
(35,000.
00)
(25,000.0
0)
(40,000.0
0)
(50,000.0
0)
Income tax -
(500.00
)
(650.0
0)
(2,000.0
0)
Net Cash used in financing activities
(35,000.
00)
(25,500.00
)
(40,650.00
)
(52,000.00
)
Increase/Decrease in cash and cash
equivalents
(5,208.
00)
2,570.0
0
(4,900.0
0)
(740.0
0)
Cash and cash equivalents at the beginning
of year
13,012.
00
7,804.0
0
10,374.0
0
5,474.0
0
Cash and cash equivalents at the end of
year
7,804.
00
10,374.0
0
5,474.0
0
4,734.0
0
Note: The current financial reports (Profit & Loss and Balance Sheet) of Kedai Kopi Pun Sim
from Year 2019 to 2020 is attached at Appendix (refer to Appendix 5.2.1, Appendix 5.2.2,
and Appendix 5.2.3)
19

Financial reports published by an organization utilizing assumption or hypothetical scenarios
regarding incidents that may have happened in the previous or may happen in the future are
known as pro forma financial statements. All the statements are intended to offer an outsider's
perspective on a company's performance, such as a part of an investment or financing
proposal (Bragg, 2021).
To assist Kedai Kopi Pun Sim in developing a strong financial plan for the future, we have
constructed pro-forma financial statements that predict and anticipate Kedai Kopi Pun Sim's
future endeavours. There are three main statement of pro-forma financial statement which are
pro-forma income statement, pro-forma balance sheet and pro-forma cash flow. Firstly, we
anticipate the sales of Kedai Kopi Pun Sim will increase and intend to reach RM 78,600 in
2021, RM 104,700 in 2022 and RM 150,500 in 2023. There are some changes for Kedai Kopi
Pun Sim in order to recruit and retain their customers such as meals package, online delivery,
advertising, packaging, sales promotion and extend product lines. These changes are to assist
Kedai Kopi Pun Sim can recover their profit as before the COVID-19 pandemic.
The easiest method to fund a firm is through bootstrapping, which is using their own financial
resources as needed. As mentioned above, Kedai Kopi Pun Sim invests in purchasing the
equipment such as the phone and receipt printer to support their online delivery services.
Oppo Reno5 (5G) (refer to Appendix 5.0) is the phone we recommend for buying, with a
retail price of nearly RM 1,999. We intend to purchase this phone since we think the
capability, battery of the phone is quite good and the price is affordable. Besides, the retail
price of Sunmi V2 receipt printer (refer to Appendix 5.1) is nearly RM 700.
Due to the Malaysia Movement Control Order (MCO) in 2021, customers cannot dine-in,
thus the sales revenue of many business are affected heavily. After purchasing the equipment,
the owner may start to explore their online business such as investing in marketing of the
business and the online delivery services. We recommend that Kedai Kopi Pun Sim work
with the Bidor's delivery platform - QuickSent. It is because QuickSent charges only a 10%
commission fees, which is less than Food Panda, which charges between 25% and 30%.
Therefore, customers can start to order the food and beverages of Kedai Kopi Pun Sim
through the food delivery service platform.
Besides, through investing in advertising and affiliate with Facebook page, the name and
reputation of Kedai Kopi Pun Sim will become more famous. This can help Kedai Kopi Pun
Sim retain more potential customers. Besides, we also anticipate that the pandemic of
COVID-19 will decrease since many people already be vaccinated. Then, the dine-in and
17

online delivery for the food and beverages can be executed at the same time. We expect the
number of employees will be increased from 1 to 2 workers. Since we need more labour to
assist the business run smoothly. For the rental paid, Kedai Kopi Pun Sim rents for the space
of outside their shop to extend the seat for those dine-in customers. Since the online delivery
and dine-in can be executed at the same time after the pandemic, so we recommend that
Kedai Kopi Pun Sim can stop to rent the space in order to reduce the expenses in 2022 and
2023.
As a result of all changes, we expect that the sales of Kedai Kopi Pun Sim will increase due
to they start the online delivery services and they extend their product line such as selling the
hand sanitizers and face masks. So, they can recover back to their peak since they have
acquire the changes to adapt in the trend of e-commerce and fast-paced world.
18

6.0 Business Model
19
Current
- Food & drinks
suppliers
- Rental stall hawkers
Recommended
- Online food deliveries
- Face mask suppliers
- Hand sanitizer
suppliers
Current
- Stock delivery
- Provide and sell foods
& drinks
Recommended
- Manage online food
delivery services
Current
- Well-trained
employees
- Stock inventory
- Spacious restaurant
Recommended
- Handling credits
Current
- Frequent chats
- Personalized service
Recommended
- Special discounts for
regular customers
Current
- Affordable and good
food & drinks
- Clean and friendly
environment
Recommended
- Convenient food &
drinks take-away
- Special offers for food
& drinks bundle Current
- Word-of-Mouth
Recommended
- Digital marketing /
Social media advertising
Current
- Chinese customers
- Families of all income
- Customers of all ages
Recommended
- The poor, misfortune
and special-needs
customers
Current
- Fixed costs (Rental, license,
renewal fees)
- Variable costs (Food & drinks
stock, salary, utilities, taxes)
Recommended
- Online delivery initial
investment setups
- Face mask and hand
sanitizers costs
Current
- Rentals
- Food & drinks
fees
Recommended
- Online deliveries
- Face mask
- Hand sanitizers

Business model can be referred to as a company’s plan to make profits by identifying the
products or services the business plan to sell, the target market, the channels involved, the
relationship with customers, and the estimated revenue and expenses (Kopp, 2020). The
following sections will be explaining the proposed business model retrieved from the owner
of Kedai Kopi Pun Sim, Ms. Lee Pei Sim during our interview, as well as our recommended
business model elements and strategies that the business can adopt in order to sustain in this
market during the COVID-19 pandemic.
6.1 Key Partners
According to Belyh (2020), key partners are business partners that involve two business
entities joint together to form an alliance that aid each other in conducting business activities.
This includes suppliers as well as businesses that work under a company in a long-term time
frame. There are currently two (2) key partners of Kedai Kopi Pun Sim, the restaurant has
different suppliers that supply different food, drinks, and materials such as bread, coffee
powder, tea powder, condensed milk, fresh fruits, soft drinks, mineral waters, and teapot.
Kedai Kopi Pun Sim also formed partnerships with the hawkers that rented stalls from the
owner of the restaurant, Ms. Lee.
During this COVID-19 pandemic when people started to opt for online food deliveries, we
would recommend Kedai Kopi Pun Sim to bring their food and drinks business to the online
world. For instance, the owner of the restaurant, Ms. Lee can register their business on online
food delivery platforms such as QuickSent that is available in Bidor. Besides, we would also
recommend Ms. Lee to outsource for face masks and hand sanitizers suppliers, and offer the
products to customers who seek to purchase face masks and hand sanitizers conveniently
when customers are waiting for the food to be prepared. This is due to the fact that the
pandemic is getting much more serious (MOH, 2021), and there is a wide usage of the
aforementioned products at this point in time (Worby & Chang, 2020).
6.2 Key Activities
Key activities can be described as the activities that a business is engaged in for the primary
purpose of making a profit (Imke, 2019). The key activities are different based on the type of
business that the company or organization operates. As an example, manufacture, production,
distribution, service provision, etc. are some of the major activities that a business can
perform. Currently, the key activities that Kedai Kopi Pun Sim is involved in are inventory
management and the serving of food and drinks to the customers by the workers of the
20

restaurant. The restaurant’s suppliers will come by and drop off their products, and Ms. Lee
will be managing the inventory stocks to check the sufficiency of products and materials. On
the other hand, the hawkers and workers of the restaurant will be in charge of serving the
customers, such as preparing food and drinks, cleaning and sanitizing the restaurant on a
regular basis, and handle the transactions of their customers.
With the suggested key partners of online food delivery services platforms, we would
recommend the owner, Ms. Lee to manage online food and drinks orders. For example, she
will have to inform the hawkers and workers immediately if orders were received from online
customers. The addition suggestions of face masks and hand sanitizers product, however, Ms.
Lee should also set and manage the finances of those products accordingly.
6.3 Key Resources
Key resources are the resources that needed to create value for customers, it can also be
considered as assets owned by businesses to support their current operation (“Business
Model: Key Resources”, n.d.). Key resources can be categorized into four groups, namely
physical resources, human resources, intellectual resources, and financial resources. In the
concern of Kedai Kopi Pun Sim, their current human resources are their well-trained workers,
as the owner, Ms. Lee mentioned that she provides occasional advice to the workers to
improve their work efficiently and effectively. The current physical resources are the premise
(restaurant) and the inventory of food and drinks. The current intellectual resources are the
license and the name of the business. Their current financial resources are the cash and
credits owed to their suppliers (refer to Part 5.0).
However, we would recommend Ms. Lee to look into and improve their financial resources.
The reason is that the COVID-19 pandemic has caused the business to earn drastically lower
incomes than usual, which would lead to unpaid or partially-paid loans and credits such as
their common expenses. With that said, Ms. Lee needed to manage their finance more
precisely to obtain and maintain a good credit score by clearing the credits on rent and
supplies. Despite the fact that money is hard to come by during this pandemic, the owner has
to think of ways to negotiate or persuade the property owner or suppliers to be sympathetic
towards one another.
21

6.4 Value Propositions
Value proposition in a business model refers to the unique value that a business provides over
its competitors (Luenendonk, 2020). In other words, value proposition addresses the motive
of why customers should choose the business’ products or services over that of their
competitors. So, Ms. Lee has also provided us with some of their unique selling points, such
as affordable and good food and drinks, as well as a clean and friendly environment. Ms.
Lee’s business is an honest one, they practice integrity as the core of their business by not
setting deceptive pricing nor predatory pricing on the products and services they provided.
The environment of the restaurant is also clean and friendly, the restaurant was cleaned and
sanitized regularly and the dine-in experience is lively and carefree.
We have also suggested two recommendations as their new value proposition considering the
fact that restaurants dine-in are not allowed in the whole of Malaysia (Adrian, 2021). Firstly,
Kedai Kopi Pun Sim can prepare convenient food and drinks take-away for their customers
who stop by to buy foods and drinks, this way would minimize the period of the customers
being exposed to the public thus minimizing the risks of contracting COVID-19.
Additionally, the orders take-away containers can be free of charge regardless of the costs of
plastic containers and plastic bags that were borne by the owner and hawkers. To
complement the free of charge food and drinks containers take-away, the restaurant can also
offer food and drinks in a bundle at a lower cost compared to that of the prices of à la-carte
foods and drinks (e.g. Fried noodles with iced Kopi O’ is cheaper when ordered together as a
bundle). These good deals have high potential to attract more customers to purchase from the
restaurant.
6.5 Customer Relationships
Based on McGill (2018), customer relationship is the kind of relationship that businesses
form with their customer segments. The relationship can be in the form of personal,
automated, and co-creation. Kedai Kopi Pun Sim’s current customer relationship strategy is
personalized service and being friendly with their customers by chatting with them regularly.
Ms. Lee mentioned that all of the workers will recognize customers that come to purchase
food and drinks from them regularly, and usually the regular customers do not have to order
food one by one themselves, in fact, all of the workers only have to confirm with the
customers to prepare the food and drinks for them because they have already memorized the
22

customers’ regular orders. The owner and the hawkers also chat with their customers
regularly, and the conversation topics are usually keeping up with their work, family,
personal stories, etc.
Since we have observed that the business treats their regular customers well to continually
maintain relationship and revisit intention, we would suggest them to provide special
discounts that were only exclusive to regular customers during and after the COVID-19
pandemic. For instance, the business can implement rounding-down pricing strategy, such as
rounding-down the decimals ranging from 10 – 40 cents to 0 cents and 60 - 90 cents to 0.50
cents (e.g. Teh Tarik Panas: discounted from RM 1.80 to RM 1.50 or Red Bean Pau:
discounted from RM 1.20 to RM 1.00). This way, the regular customers will feel that they
were valued, thus developing a better relationship, and eventually increase repurchase
intention.
6.6 Channels
Luenendonk (2020) illustrates that channels are the touch point on how an organization
communicated with its customer segments. As channels are a form of communication, they
can also be considered as one of the main components within the marketing field.
Luenendonk (2020) also mentioned that channels and customer relationships are linked
together on how relationships among businesses and customers are initiated. According to
Pereira (2020), there are five (5) phases of channel functions, namely awareness, evaluation,
purchase, delivery, and after-sales. Each of these phases correlates one another on how the
customers get to know about the business, all the way to customer purchase and customer
sales support services. Kedai Kopi Pun Sim was assumed to have its marketing channel in the
form of word-of-mouth (WOM), as Ms. Lee mentioned that customers are usually introduced
by their families or friends of existing and regular customers.
As WOM is hardly been utilized since everything is online during the pandemic, we would
suggest advertising their food and drinks business on the internet. To be specific, Ms. Lee and
the workers can promote their restaurant’s 4Ps (Product, Price, Place, and Promotion) on the
social media websites such as Facebook and Youtube, as the two social media platforms are
among the most popular in Malaysia (Statista, 2021). Implementing the 4Ps strategy, the
business can post photos or videos of their delicious food and drinks on social media
platforms, while stating the prices, location, and the promotion that was ongoing. Not only
that, if Kedai Kopi Pun Sim has successfully integrated the online food delivery services,
23

they can also mention that customers can order online via food delivery apps such as
QuickSent which is the only available food delivery service platform in Bidor.
6.7 Customer Segments
Based on Ehrens (2019), customer segmentation can be referred to as the division of the
entire customer base into distinctive groups of individuals of different attributes. In this way,
businesses can operate more specifically to meet the needs and wants of their targeted
customer segments rather than the entire market as a whole. There are several notable
customer segments that businesses usually target, such as demographic (age, income,
occupation, etc.), geographic (customer’s location), psychological (beliefs and values), and
behavioural (consumption rate and purchasing habits). For Kedai Kopi Pun Sim, the business
targets all kinds of customers regardless of their age or income. Yet, most of the customers of
the restaurant are Chinese customers who were seeking for good breakfast and lunch at a
reasonable price.
To step up their business, we would recommend the business to offer particular offers and
discounts to the poor, misfortune, and special-needs customer base. The restaurant should
treat the said customer groups with special services by sympathizing with them and providing
them better services, especially during this pandemic whereby a remarkable amount of people
have been losing their jobs and find it financially difficult to even afford meals to feed
themselves and their families (Yusof, 2020). For example, Kedai Kopi Pun Sim can sell their
foods and drinks at a loss, break-even, or even donate to those who could not afford a proper
meal to continue to sustain the every-challenging period of time. This action can bring hope
among the unfortunate customer segments, and the business can hope that those who were
helped can return for a favour once the pandemic effects started to diminish and the economy
started to recover.
6.8 Cost Structure
Pereira (2020) stated that cost structure is composed of all the important costs involved in the
entire operation of the business. It was also affirmed that cost structure is required in a
business model because the components within the model such as value proposition,
customer relationship, channels, key resources, activities, and partners require expenses to be
24

performed. That said, the costs involved within the business of Kedai Kopi Pun Sim are fixed
costs and variable costs. Fixed costs such as rental, license, and renewal fees are paid
periodically in order for the business to continue to operate. Variable costs, on the other hand,
such as food and drinks inventory, worker’s salary, utility fees, and taxes fluctuate from time
to time depending on how heavily used the expense was during a specific period of time.
In order for the business to implement its online food delivery business, initial investments
such as a smartphone, multipurpose food delivery device, and Wi-Fi deposit are needed. The
variable costs, however, are the additional utility fees from the printer and Wi-Fi router,
mobile data connection package (if the business decided not to use Wi-Fi), and Wi-Fi
network fees (if the business decided not to use mobile data). Additionally, the costs to
purchase face masks and hand sanitizers from suppliers also needed to be taken into account
by the business as well.
6.9 Revenue Streams
In contrast to costs, revenue streams are the various sources from which a business can
generate revenue from the sales of goods and services (CFI, 2019). Revenue streams can be
generated through asset sales, usage fees, renting or leasing, licensing, and transactions. The
revenue streams that are applicable to Kedai Kopi Pun Sim are renting and transaction
revenues. The recurring rental revenues from the hawkers who set up their store under Ms.
Lee’s premise can be considered as a fixed cost, whereas the transaction fees such as food
and drinks fees from customers can be regarded as variable costs, as there are no measurable
fixed amount of customers who come by every month. In fact, the business’ revenue stream
from transaction revenues has been performing rather badly during this pandemic.
Hence, to counter this issue, we would suggest the business to source their main income from
online food delivery apps, as we would anticipate that the revenue generated from online
customers will exceed that of customers who come by physically. Despite the considerable
amount of investment required to set up an online partnership business with delivery
platforms, we are certain that this would benefit the business imminently. Furthermore, some
of the side income that the business can generate is from the sales of face masks and hand
sanitizers with reasonable mark-ups.
25

7,0 Growth Strategies
7.1 New Product Development
New product development strategy focus on creating new products that the market seeks.
New products demand the company to recognise a need and then create a solution to make
life simpler, safer or more pleasant (Leonard, 2019). Also, the creation of new products is a
competitive requirement. As currently Kedai Kopi Pun Sim only offers beverages and
tradition local breakfast, it could introduce a series of lunch meals to their customers. Kedai
Kopi Pun Sim could continue offers beverages and some tradition local breakfast as it has
rented out to other stalls which selling noodles and “dim sum” for the morning section.
Therefore, Kedai Kopi Pun Sim could focus on the lunch section which offering a series of
lunch set meals such as fried noodles, fried rice or “economy rice”. For the “economy rice”,
Kedai Kopi Pun Sim could sell various types of Chinese style dishes which could strengthen
its brand positioned as an old Chinese food stall. By offering a series of lunch set meals, it
could attract the existing or new customers who eager for affordable lunch meals and provide
the opportunity for the loyalty customers to try out its new products. Thus, it could help
Kedai Kopi Pun Sim to increase their sales revenues.
7.2 Other product-related strategies
7.2.1 Improving an Existing Product or Service
Improving existing products or services is an efficient method for growth strategy as it is less
risk and cost-saving compared to creating new products which consume a lot of time and
resources (Leonard, 2019). This strategy could help the companies to increase the sales by
increasing the quality of its existing products or services. Due to the restriction of
government, Kedai Kopi Pun Sim currently only be allowed to offer take away services.
Hence, the demand of takeaway packaging has increased. As currently Kedai Kopi Pun Sim
is using single-use plastic packaging to pack their food and beverages for the takeaway
services, they could improve the quality of the takeaway packaging by switching to
26

disposable food packaging. Kedai Kopi Pun Sim could use disposable food packaging to
replace with the single-use plastic packages for the takeaway services. By improving the
quality of takeaway packaging, it could boost the eco-friendly image towards Kedai Kopi Pun
Sim as disposable food packaging is environmentally friendly. Moreover, it also provides
convenience for the customer to carry their favourite food and beverages. As a result, it could
attract more customers as it brings up a good image towards Kedai Kopi Pun Sim.
7.2.1 Increasing Market Penetration
Marketing penetration strategy is one of the growth strategies that help in increasing a
product’s market share through strong marketing efforts (Kenton, 2021). As the target
customers of Kedai Kopi Pun Sim are low- and middle-income group, Kedai Kopi Pun Sim
could focus on the prices of their products. Other than introducing different set of breakfast
meals packages, Kedai Kopi Pun Sim could implement a sales promotion which offer free
drinks or free food such as half-boiled eggs or kaya butter toast for the customers who
purchased their products up to a certain amount of price. Hence, it could encourage the
customers to buy more so that they could get the free drinks or food which is more worthy.
Kedai Kopi Pun Sim could promote the breakfast meals packages and the sales
promotion through social media platform such as Facebook. Besides promoting the posts
in “Bidor” public group, Kedai Kopi Pun Sim could introduce “Like and Share” campaign
which encourages their customers to help them like and share the posts by rewarding them 10
percent discount. For those customers who shared the posts, they could get the discount by
showing the screenshot of the shared post. This method could attract more customers to help
them share the post as they want to get the discount. The more customers share the post, the
more audiences that Kedai Kopi Pun Sim could reach. As a result, the advertisements of
Kedai Kopi Pun Sim could effectively reach out the maximum of customers meanwhile
enable to attract more customers, thus it could increase the profit margin by selling large
volume of products.
7.2.2 Extending Product Lines
Extending products lines involve adding new features to existing products such as different
forms, flavours, size and so on, rather than developing completely new products (Linton,
2019). As the signatures of Kedai Kopi Pun Sim are the series of coffee which include “kopi
kau”, “kopi ais” and white coffee, it could add a new form of the coffee by introducing ice-
blended coffee. Other than ice-blended coffee, Kedai Kopi Pun Sim also could introduce ice-
27

blended Horlicks, ice-blended milo and ice-blended Teh Tarik. Besides, in terms of the types
of egg, currently Kedai Kopi Pun Sim only offers half-boiled eggs. Therefore, other than
half-boiled eggs, Kedai Kopi Pun Sim could come out with another form of egg doneness
which is hard-boiled eggs. Moreover, other than kaya butter toast, Kedai Kopi Pun Sim could
introduce more flavour compounds of toast such as chocolate peanut toast, peanut butter
toast, ham cheese toast and so on. By introducing ice-blended series of beverages, different
forms of egg doneness and different flavour compounds of toast, it could provide more
options for them to choose which enable to meets variety needs of customers and keep
customers interested.
28

REFERENCES
Adrian, W. (2021). FMCO: Restaurants + eateries can open from 6am to 10pm! Retrieved
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APPENDICES
Yes No
0
2
4
6
8
10
12
14
16
1. Do you have breakfast in your everyday life?
Figure 1
Every day 5-6 days 3-4 days 1-2 days
0
2
4
6
8
2. If yes, how often you consume breakfast in a week?
Figure 2
Yes No
0
2
4
6
8
10
12
14
3. Do you think that the breakfast provide by Kedai Kopi
Pun Sim is lack of choice?
Figure 3
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30 minutes 1 hour 2 hours 3 hours > 3 hours
0
1
2
3
4
5
6
7
4. How long do you use Facebook in a day?
Figure 4
Yes No
0
2
4
6
8
10
12
5. If Kedai Kopi Pun Sim offer pre-order and pick up service
through Facebook, will you consider to use it?
Figure 5
Yes No
0
2
4
6
8
10
12
14
6. Do you use e-Wallet to make payment in daily life?
Figure 6
33

Yes No
0
2
4
6
8
10
12
14
16
7. Do you willing to use online food delivery services?
Figure 7
Appendix 1.0
Appendix 1.1
34

Appendix 1.2
Appendix 2.0
35

Appendix 2.1
Appendix 2.2
36

Appendix 5.0
Appendix 5.1
37

Appendix 5.2.1
38

Appendix 5.2.2
39

Appendix 5.2.3
40

Interview Transcript - Ms Lee Pei Sim, Owner of Kedai Kopi Pun Sim
Q1: Can you briefly introduce yourself and your restaurant?
A: I am Lee Pei Sim, the owner of Kedai Kopi Pun Sim. I have started up my stall since 1989
in Pasar Bidor. We are doing kopitiam, basically selling kopi kau, kopi ais, white coffee,
milo, teh and so on. Other than that, we also sell kaya butter toast and half-boiled eggs. As we
mainly sell kopi in our stall, we have rented out for other food stalls as well.
Q2: May I know what are the types of food stalls that you rented out?
A: We just rented out for 2 stalls. The first one is a noodle stall, selling “yong tao foo” (side
dishes), prawn noodles, and the most famous one is the “chee cheong fun”. Another food stall
is a “dim sum” stall, selling “pandan pau”, “vege pau”, “lo mai gai '' and so on. Basically,
customers who come to our stall will order our signature kopi kau and the chee cheong fun,
because it is quite famous here.
Q3: Could you briefly explain how you started up your business?
A: Since I was young, I like to drink coffee a lot, and I am quite curious on how to brew a
nice coffee. So, I started to do some investigation such as go and observe how other kopitiam
prepare the kopi and examine all the taste of the coffee, then i go back and try myself. At that
time, my husband also helped me a lot in all those financing stuff and also business planning.
After we built up our stall, we opened for other food stalls to rent, so when the customers
come, they will order the food and also will order our drinks. So this is one of the strategies
that we attract the customers.
Q4: Other than selling beverages and some traditional local breakfast, do you provide
any services to the customers?
A: For the services, we just provide dine-in and take away services. Customers can take away
the food and drinks and eat at home or other places.
Q5: What is your target market?
A: My target market is the customers who like to eat local traditional Chinese breakfast at
pasar. Basically, the customers are the middle aged customers, or come with the whole family
and also the housewives who would like to take away the food and drinks after buying
41

groceries from the center of pasar. Besides, we also target the secondary students who would
like to have breakfast before going to school.
Q6: May I know what your operation hours are?
A: Before COVID, the operations hours are from 5.30am to 1pm, and then every Thursday is
our off day. Currently, because of the restriction, we can only operate from 8 am to 12 pm, so
we decided to operate every day.
Q7: During this COVID 19 pandemic, what are the problems that you are currently
facing?
A: The first problem is the customers are getting less and less. Last year, during COVID-19
pandemic, we only operated for three to four days a week because there were very few
customers. But until around August and September last year, the customers were increasing
and we can operate our business back even though there are limited seats in the stall due to
the social distancing. This year became worse again because the COVID-19 cases are
increasing in Bidor and the government only allowed us to operate from 8am to 12 pm, and
we only can offer take away services, so currently we will not have any customers come after
around 11pm.
Another problem is the increasing costs of the business. During this COVID-19 pandemic,
the cost of materials is increased, but the government did not allow us to increase the price of
our products, they wanted us to remain the price. In addition, we still have to pay the license
fee, renewal fee, rental fee for renting the outside area of my restaurant, electricity bill, water
bill, gas, and so on. We already do not have much sales, but we still need to continue paying
all those expenses, so it is very hard for us during this period.
Q8: How many workers are hired? Do you consider adjusting workers during this
pandemic?
A: Only one worker. No, because there is only one, and the salary is still the same.
Q9: What is the age range of workers?
A: 58 years old
Q10: What is the average salary of the workers?
42

A: RM 40 per day, from 7 am to 1 pm
Q11: Are the workers familiar with the technology?
A: No, she only knows the basic function of using the phone.
Q12: Has Kedai Kopi Pun Sim received any support from the government before or
during the COVID-19 pandemic? If yes, what kind of support does the government
provide?
A: No. because I am not familiar with the procedures and nobody can assist me.
Q13: How much space for Kedai Kopi Pun Sim to bargain with the suppliers? (like the
price negotiation and payment postponement)
A: Actually we paid under the package with a certain standard rate. Even during COVID-19,
the cost of materials some still remains the same and some even increase the price, no
discount, because the suppliers also faced a hard time during this period. Before COVID-19, I
usually make the payment within the 30 days payment term once I receive the purchase
invoice. However, since August 2020 even worse, it has changed to 15 days cash term which
means that I have to pay them cash within 15 days payment term once I receive the purchase
invoice.
Q14: Who do you think are the competitors of Kedai Kopi Pun Sim?
A: Actually, within all the chinese food stalls that are located at pasar, all are my main
competitors.
Q15: Would you mind listing your 3 main competitors among them?
A: Then I would say Soon Kee, Erat and Fong Kong Kee.
Q16: Could you briefly explain about these 3 competitors?
A: Soon Kee was actually just three stalls away from my stall. It basically sells “Chee
Cheong Fun '', kaya butter toast and also the drinks. Then, Erat is also near my stall. It sells a
lot of different chinese style side dishes, noodles, signature “Chee Cheong Fun '' and the
drinks as well. Fong Kong Kee is just behind my stall. It also mainly sells drinks such as
white coffee, and it is rented to other noodle stalls as well. The famous dishes there are the
white coffee and the “Kon Loh Mee”.
43

Q17: How many workers are hired ? Do you consider adjusting workers during this
pandemic?
A: Only one worker. No, because there is only one, and the salary is still the same.
Q18: Do you think the sales of Kedai Kopi Pun Sim in 2021 will have any changes
compared to 2020?
A: Yes, the sales will continue to decrease because of the government restriction of business
due to the increasing COVID-19 cases, and the purchase materials prices also increase.
Q19: May I know who your business key partners are, such as your suppliers, materials
provider, or even your rental stall hawkers?
A: I am a sole proprietor and my suppliers include bread supplier, coffee powder and chinese
tea are from one supplier, tea dust supplier, condensed milk I take from 2 suppliers, teapot
supplier, fruit (lemon) supplier, soft drinks & hard drinks supplier and two rented stall
hawkers (noodles stall and “dim sum” stall).
Q20: What activities do your business partners perform?
A: The suppliers will deliver the stock to our stall, and come out with the invoice. The rental
stall hawkers will open their stall in the fixed partition in front of the shop.
Q21: What are your business value propositions, like what products or services that you
provide to your customers? Do you mind mentioning all of them?
A: We will provide good food, good drinks and good service.
Q22: What does your business do that is considered special, and it sets apart from what
your competitors do?
A: We provide very affordable food and drinks, a clean environment and the most important
thing is we provide a good taste of food and drinks.
Q23: What are the key activities that your business performs, do you manage and train
your employees?
A: Normally, I will make the food and drinks and manage and keep the money. My worker
will incharge of receiving the order, delivering the food and drinks to the customers and the
44

customers will pay for the food and drinks to my worker and then my worker will pass the
money to me. On the other hand, I will train my workers to be familiar with what products
that we offer and the prices. When there is no customer, the worker will do the hygiene tasks
such as cleaning the table and washing the plates and cups.
Q24: What are your company’s key resources? Do you have food stalls that attract a lot
of customers? Also, does your company have good financial performance before this
COVID-19 pandemic?
A: Most of the customers will order our coffee such as kopi ais, kopi kau, white coffee and so
on and the noodle stall that I rented has attracted a lot of customers as they are famous in the
“Chee Cheong Fun”. Before COVID-19, our customers like to dine-in and chichating with
their friends, and most of the time our seats are full especially during weekends. Therefore, I
can say that we really had good financial performance during that time.
Q25: What are some of the things your kopitiam provides that can help build strong
customer relationships? Do you frequently communicate with your customers?
A: For the regular customers, actually we know what they want because they often order the
same food and drinks, so we will just confirm with them with the orders. So these actions
actually can make them feel they are important as we still remember their favourite food and
drinks. Sometimes, when there is only one customer dine-in in my shop, I will chit chat with
him or her after I clear the customer’s order.
Q26: May I know how do your customers get to know about your kopitiam during this
COVID-19 pandemic (channels)?
A: Normally, just remain the regular customers, or maybe the customers that are introduced
by their families or friends that have been dine-in in our stall before.
Q27: May I know who your customer segments are? Do you have specific types of
customers that come to your kopitiam regularly, like age, income, or all kinds of
customers that come to your kopitiam regardless of their demographics?
A: All ages of customers also will come, mostly middle-aged customers, some are with
families, and before COVID-19, as the secondary school is near to my stall, during the school
days, many students will come to our stall to have their breakfast before going to school.
Generally, my customers are all in the low or middle income group.
45