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Company Analysis: Samerin Legacy Enterprise
Company Analysis: Samerin Legacy Enterprise
Assalamualaikum w.b.t.
We would like to express my deepest appreciation to all those who provided us the possibility to
complete this report. A special gratitude we give to our lecturer’s Madam Siti Aishah binti
Mohamad, whose contribution in stimulating suggestions and encouragement, helped us to
coordinate our case study especially in writing this report.
Furthermore we would also like to acknowledge with much appreciation the crucial role of the
manager of Samerin Legacy Enterprise, Mr. Ahmad Samerin bin Dzulkifli who gave the permission
to us all for the interviews and the necessary materials to complete the task “Fundamentals of
Entrepreneurship”.
Last but not least, many thanks go to the all team mates of the project, whose have invested on
their full effort in managing the team in achieving the goal. We also have to appreciate the
guidance given by our classmates in our project report, it has improved our skills thanks to their
comment and advices.
TABLE OF CONTENT
PAGE
TITLE PAGE i
ANKNOWLEDGEMENT ii
LIST OF FIGURES iv
LIST OF TABLE v
EXECUTIVE SUMMARY vi
1. INTRODUCTION
2. COMPANY INFORMATION
2.1 Background
2.2 Organizational Structure
2.3 Products/Services
2.4 Technology
2.5 Business, marketing, operational strategy
2.6 Financial achievements
3. COMPANY ANALYSIS
3.1 SWOT
5. CONCLUSION
7. REFERENCES
8. APPENDICES
EXECUTIVE SUMMARY
1.0 INTRODUCTION
Samerin Legacy Enterprise is an electrical store that has become the choice of
residents around the Bandar Pusat Jengka and has been in the business world for a
long time. However, there are some weaknesses in the business that have been
identified through observation. First, the signboard in front of the store is in a less
attractive and obsolete state. This will cause the people cannot recognize the store
as the electrical store and less attract people to come. Next, the business layout in
the store is not suitable with sales items which are narrow place may cause worker
difficult to transfer items and the customer cannot reach the items. If no change is
made by the owner, it may risk the business in the future as often quoted in
business is: “Failure to plan is planning to fail”.
The purpose of the case study on Samerin Legacy Enterprise is one of the
opportunities for the student to learn about entrepreneurship. A student will be
exposed to how a business is carried out and its challenges. If the student wants to
run a business in the future, they know the step to start the business in the
appropriate channels and able to manage the business properly. Furthermore, they
can survive in the business world by upgrading the operation of the business from
time to time become more efficient and organized. Next, enhance the sales
promotion strategy of the company to become more attractive toward the customer
and able to compete with the other competitor.
2.1 Background
Ahmad
Samerin
Manager/Owner
Nora Mohamad
Hezwan Faiz
Nor Akmar
Clerk
Mohd Ahmad
Abdul Muiz Amin Razak Mat Daus
Fadilah Nazmi
Supplier Driver Sales Assistant Sales Assistant Sales Assistant Sales Assistant
Figure 1.0 : Organizational Structure
2.3 Products/Services
2.4 Technology
The Samerin Legacy Enterprise use several machines for daily tasks. This
technology was mostly used for the service in installing the “All-Asian Satellite
Television and Radio Operator” or also known as Astro channel to customer
home or office. The Astro component did not have a specific brand because
the Astro Company itself provide the device. The device for installing the
Astro channel are decoder, satellite dish accepter, remote control and
connection cable. The company using computer to doing the monthly
computerized financial report and also filling the systems with the stock
quantity, brands and price value.
2.5 Business, marketing, operational strategy
2.5.1 Business
The Samerin Legacy Enterprise with capacity of 9 workers have shown that
this company does not have a straight rule or a certain type of qualification to
hire their worker. By referring to the manager itself, he say that anyone can
works at his company and there is no an interview or any qualification
needed. If they do not have experience, they still can be teach by other
experience workers.
The workers have to work for 9 hours per day starting with 9.00 a.m until 6
p.m every except for Sunday and public holiday. There is no specific lunch
time for the company, the worker can take turn to rest with other workers. If
the is no customer at that time, works a free to rest and having their lunch. On
certain public holidays the workers was given a choice whether they want to
take a leave or continue to work on that day.
Job Scope
Manager Monitor the worker.
Make sure everything was in good condition.
Salary : RM 5000
Assistant Monitor the workers.
Manager Update and renew the stock of the items.
Record all the in and out flow of profit.
Manage the worker’s salary and lunch.
Handling the meeting with salesman or supplier.
Promote the company online through Facebook.
Salary : RM 3000 per month
Clerk Assist the assistant manager.
Doing the monthly financial report.
Salary : RM 1200 per month
Supplier Bring supply of electric equipment to the shop.
Driver Deliver the sold equipment to the customer.
Handling in Astro Service.
Salary : RM 2000 per month
Sales Selling the electrical item to the customer.
Assistant Consult the customer on finding the best equipment.
Repairing the electrical equipment.
Salary : RM 1000 per month
2.5.2 Marketing
Business Card
This company used a simple business card as their marketing. The business
card provided with a simple information about the company such as the name
of company, address, phone number and Companies Commission of
Malaysia register number. By the information on the business card, customer
can know the company details and with a good design card can attract more
customer. Business card is a small tool that can be carried anywhere and
anytime. It easy to use by giving it to the customer not only at the shop but
also anywhere that is suitable. Besides, the company also using a stamp that
have their company information that stamped on the customer receipt. Its acts
given an approval towards the receipt and also company information.
Signboard
Word of Mouth
Other than that, word of mouth is an important marketing strategy for this
company. Word of mouth is define as an action that influencing and
encouraging organic discussion about a business. It creates an opportunity
for people to talk about. People nowadays can be easily influenced by
referrals from other people, especially someone that they trust. This create a
trusted word and opinion that tend to trust the opinions of their friends when
making purchasing decisions. Customer satisfaction and good feedback from
the services that they get in the Samerin Legacy Enterprise make them to talk
to the others. For examples, the family that had services in this company
already in second generations since 1995. Quality and good services in the
company had been gossip in the community make people trust the skill of the
owner.
Social Media
A social media was used as a medium for promoting and attracting customer
such as a Facebook. Their Facebook is known as “Samerin Legacy
Enterprise” with easy to in spreading the news to the people they used
Facebook as their main social media. Inside the Facebook they give
information on the item that they sold and also a service on installing the
Astro channel with an affordable price. When they having a promotion or to
clear the stock, they will inform to the people inside the Facebook with a
suitable discounts.
Competitors
The company marketing strategy was based on the customer service and
getting the customer feedback and customer recommendation that mainly
was residents around Bandar Jengka and Felda settler. Based on customer
to customer talk about the company, the other community can know the
building of the company that served the good quality of electrical equipment.
It can be shown by the people that come to make the shop already in second
generations up till 23 years after established. This company have make
customer loyalty to their company as one of the mechanism in marketing. Mr.
Ahmad Samerin also have a great connection and network with the people in
the electrical industry and people all over Jengka. This connection make the
company always have the customer for every season and year
Business Hours
This company is more toward selling product than given service such as
repairing and installing Astro Channel. So, they have a supply that high
enough to go on the business for almost a week. Electrical device also a long
term items that do not have expired date and can be store for a longer time.
Usually the items will be at display at the shop and the customer is freely to
look and touch the equipment also can demonstrate the device function
whether it can operate smoothly. The sale assistant will consult them and
advice which is better depend on the customer requirement. In installing Astro
channel, the driver supplier was the man for the job. He will go to the
customer house or office for installing the Astro.
Besides, the service counter that can be seen clearly on the front of the shop
is also effecting customer number. The customer can directly go to the
counter to ask for information or service. Although there was also customer
that prefer to walk around first before consulting with the workers.
Stock Supply
Samerin Legacy Enterprise have a store on the second floor their shop. This
floor is used to store their supply. This can make the company to last without
new stock of supply for a month. The stock supplying was be managed by the
driver and also assistant manager. They will survey and update the list of the
number of stock available and what item needs to be resupply. Then, the
assistant manager will contact the supplier to update their item. The supplier
are mostly from Panasonic Company and LG Company bust also come from
other company based on their brands. This supplier are come from all around
Malaysia such as Selangor, Penang and Johor. For clearing the old stock,
the company will make a clearance by offering a discount or a gift to their
customer. The promotion was promote by using social media such as
Facebook and banner in front of the company.
Layout
Files Desk
Items Cabinet
Service Counter
Item Cabinet Door Front Door
The arrangement of the product is too compact no suitable with the space
available.
The display of electrical equipment is be categorized by the type of product
at the item cabinet and on the floor.
The files desk is too open and there are no privacy for the worker when
handling the important files.
The service counter and cashier counter should be separated to smooth the
customer flow.
Samerin Legacy Enterprise survive at Bandar Jengka for 23 years with the
stable financial achievement. Starting with RM 100,000.00 as a capital, the
company can achieve the margin profit one year after and survive till now.
Each of the product make in this company, the price of the apparel will be
divide into 4 category; network, workers, purchases and utility. Then, the
profit for the company is high with customer more than 50 peoples per day for
normal day. The business financial had a great profit during the season
festival such as Hari Raya Puasa and Hari Raya Aidiladha where the sale can
reach over the normal day with twice the number of customer than normal
day such as more than 100 customer per day. The number of days is high
because most the customers come to the shop to buy spare part of their
electrical device. Introduction of Government Service Tax, GST on 2015 was
effected to the company by dropping their sales. By having the taxes, people
in area of Jengka have lost their purchasing power because they do not have
high income and need to save money for the future.
3.0 COMPANY ANALYSIS
3.1 STRENGTH
This company offers the delivery of goods to customers' homes. The company is
also ready to take damaged items from home to shop for repair.
The building has been bought by the entrepreneur and not to rent the building.
The company's buildings are two floors where the upper floors are used as
storages for storing electrical items from suppliers.
Although employees in these companies do not have high eligibility in the field of
electronics, but they quickly learn and are well versed in electrical equipment.
They also serve their customers very well.
Adequate parking
Electronic items in the store are too much and are not systematically arranged to
limit the movement of customers within the company.
Old-looking buildings and paints have been shattered causing less attention to
new customers.
Initially, this company is easy to identify. But with the construction of new
buildings has caused the company to be obscured from view.
The boss does not have a special place or room to deal with. All transactions
take place at the counter.
Weather effects
UiTM students will buy a fan for themselves because of the hot room condition.
Unpowered competition
There are competitors, but they do not sell various branded electronics. Some
also do not provide the delivery service of the purchased goods.
Loyal customers
This company is the first to operate in the region until now and has successfully
acquired many loyal customers.
This premise sells the latest items in the market where the other premises are
slightly slower to get the latest items from the supplier.
Online Shopping like Lazada always make cheap sales in conjunction with
festive days
People nowadays like to send clothes to laundry rather than buying a washing
machine.
Economic factor
There are also many promotions made in conjunction with the opening of new
stores like DIY
A new tax system introduced, namely SST which raises a slight price for electric
products.
4.0 FINDING AND DISCUSSION
During our interview session at Samerin Lagecy Enterprise, we observed that the
company had problem due to the arrangement of products are too compact which is
limiting the movement of the customers in the shop. We also noticed the repairing
service section and rest room for their workers are located closely at the product
display section causing crowded inside premise while in front of the company are
too much signs that confusing the customers.
The inconvenience premise layout will lower the customer’s attraction as the
customer feel uncomfortable walking for looking their wanted item in the premise
because unsuitable arrangement of the sections that block the movement of
customer. This problem can cause the customers did not visit the premise again.
The advantage of this premise is had a large upstairs store that can be used to
move the items while renovate the premise to rearrange systematically the sections.
However, the disadvantage of this solution there are no sale for particular period of
time due to renovation process.
The history that were told by the company’s owner where the premise is the first
electrical shop at Bandar Jengka Pusat. For the beginning Bandar Jengka Pusat
growing, the position of this premise is very strategic due to this only an electrical
shop no other building. With the changes of times, the position of the premise no
longer strategic when the other shop and building growing fast and cause the
customers difficult to locate the shop. The premise should place a signboard to bring
customer to this premise. The advantage of rise the signboard can increase the
customer visiting the shop. However, the disadvantage of this solution is signboard
need up to date due to rising another shop and building.
4.3 Online Shopping Offers Lower Price (Threat)
For the second problem faced by this company is no cheap sales than normal prices
compared with online shop that always offer the cheap sales at the end year or
clearing stocks. So, the customer will tend to buy the cheapest one. Nowadays, the
evolution of technology causing the people to use the online shopping with one click
that can save their time rather than go to this premise directly. This problem can
cause decreasing number of customer due to cheap sales on online shopping. To
increase the selling, the company need to make promotion and a cheap sales to
compete with online shopping. The advantage of cheap sale promotion will cause
the premise equivalent with online shopping. However, the disadvantage of this
solution is too much cheap sales promotion will cause the premise not gain profit.
5.0 CONCLUSION
In conclusion, we have been able to identify the problems faced by the Samerin Lagecy
Enterprise. We give some ides to solve the problems they faced. We hope with our help by
giving some ideas to solve the problems and they could accept with sincere and assist
them in managing their business to be more success in the future.
From this case study, the biggest problem faced by this company is related to the layout.
The compact layout makes the premise of the premises look cramped and makes it difficult
for customers to search for electrical items. So, the company need to store their goods
somewhere else and the store available on the top floor of the building can be used as a
place of sale as well. This will reduce the bottom density of the items. This will make sure
the premise looks neat and tidy. Plus, there will be a lot more space and comfort for
customers to wonder around the premise.
During online shopping competition, the premises should be more active in social media to
promote selling goods. In today's modern world, customers prefer to buy online rather than
go sales centres because it can save you time and cost. Customers also prefer to make
online surveys before buying something. Instead of going to the premises, they prefer to
survey online as it saves more time and energy.
7.0 REFERENCE
8.0 APPENDIX