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
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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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