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Entrepreneurship C14 SME Assignment
Entrepreneurship C14 SME Assignment
Entrepreneurship C14 SME Assignment
ASSIGNMENT
1.0 INTRODUCTION.............................................................................................................. 1
LIST OF FIGURES
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FIGURE 5 : COFFEE BEAN FROM SOUTH-AMERICA ................................................ 4
LIST OF TABLE
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1.0 INTRODUCTION
1.1 Background
This project aims to encourage the students in becoming more familiar with the basic concepts
of entrepreneurship done in real world and to understand the operation and marketing that small
medium enterprise need to handle. After discussion done between team members, the Small to
Medium Enterprise (SME) that chosen are in beverages industry that situated in Petaling Jaya.
A letter of requesting for an interview was sented and received a reply from the company
allowing the team to set-up an interview on 31 October 2020 at their own company
headquarters office.
The methodology of this project are interview with the owner or manager of the
company and through web search from the internet. The limitation of this project are the
interview were conducted in time of COVID-19 Conditional Movement Control Order that
implemented in Selangor. Therefore, the visits for an interview is time restricted and visit on
their factory manufacturer is not allowed.
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1.3 History Of Company Start-Up
The company was founded since 1955 by the great-grandparent who was the last Chinese
immigrant from China brought to Malaya, where their first company, Heng Lee Coffee Mill
was a family business and operating only as a coffee roasting unit supplying traditional coffee
within the Malaysia. The business idea created around 60 years ago when at that time the small
restaurant was roasting their coffee on their own and this giving Heng Lee an idea to supply a
roasted coffee service distributed to local small restaurant. The family business was inherited
for generation to supply coffee to restaurants and small grocery store. The first company was
situated at Kawasan Industry 1, PJ Old Town for 36 years before moved to new location at Old
Klang in 1991.
Up until in 2010, where they started to incorporated a subsidiary, Heng Lee Coffee &
Beverages Sdn. Bhd. to take over the distribution of their coffee product up to the notch, to all
over Peninsular and East Malaysia as well as overseas. Because of a demanding market from
the customer, this company was founded to meet up the demand.
Ever since then, the company has diversified from producing tradisional black coffee
to the instant beverages business. This thus consequently marking the birth of a unique brand
name as “RICHBOY”, for the sale of their new range of instant products which will also
include amongst the other things such as instant coffee, instant cocoa and instant chocolate
drinks. Both of the company still operational until today, continue by the 4th generation family.
To be one of the market leading in food and beverage industry in bringing the “RICHBOY”
brand known locally and global reach.
The Company plans to expand the sales to Australia and South America in the near future after
their product already hit market shelves in Malaysia, Brunei, Myanmar, Cambodia, Hong Kong
and China by providing a high quality and best value product to the customers.
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1.6 Business Operation
The company source of coffee beans are from Vietnam, South Africa, Indonesia, Guatemala
and Brazil amongst other countries. With this the company then roast the coffee in their factory
premises in Old Klang Road. A quality control was done to ensured the coffee was given the
best flavour to meet their standard of aroma and aftertaste. Once roasted the coffee bean will
be either sold as a whole, roasted beans or coffee grounds in a sealed quantities based on the
customer request.
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1.7 Supply Chain Network
The company supply chain network have their source of coffee bean from various countries
such as Vietnam, South Africa, Indonesia, Guatemala and Brazil. Their effective supply chain
management which procuring 3-6 months in advanced before starting to manufacturing
products helps the company in optimizing the production and this help in contributing to the
costs control and time delivery to their customer orders.
Figure 5 : Coffee bean from South America Figure 6 : Coffee bean from Guatemala
1.8 Product Distribution & Service
The company have their warehouse well-equipped to accommodate storage for vast quantities
of their coffee powder product before being distributed. The product was distributed locally
and also export to other countries such as Cambodia, Singapore, China, Hong Kong, Macau,
Hunan, Indonesia and also other countries. Each of the country will have only one main
distribution for now.
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2.0 PRODUCT
Heng Lee Coffee & Beverages Sdn Bhd. main products are producing tradisional black coffee
to the instant beverages to customer through various outlet consist of supermarket,
hypermarket, online marketing platform such as Shoppe and also export to other countries via
main distributor. The RICHBOY brand have produced 15 different product of instant coffee
and beverages with different packaging and price. Each packaging weight between 480g to
600g depends on type of beverages. The selling price of each product is between RM12.90 to
RM13.90 each packet which consist of 15 sachets per packet. For export product, there have
different packaging of each product depends on each main distributor in each country.
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3. 3-in-1 Hazelnut White Coffee
7. Coffee Powder
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9. Instant Cappuccino
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Export Hazelnut White Coffee
15. (different country have different
packaging)
2.2 Promotion
How company introduced their product to customer? This is one of the question was raised by
our team for the entrepreneur to explain the mainstream of products promotion used. For local
marketing strategy, basically company will setup the RICHBOY Coffee and Tea testing corner
which is usually located at hypermarket such as Jaya Grocer Damen Mall (USJ1) and Nirwana
Hypermarket Star City (Kuantan) as promotion medium. Hence, for global marketing strategy,
the company decided to make a good use of the social media platform such as Facebook,
WhatsApp, Instagram, Shopee Online Shopping and various more application to blast their
product promotion to the consumers.
The companies create their own websites that accessible through below link.
Websites: http://www.richboy.com.my/
Instagram: http://instagram.com/richboywhitecoffee?igshid=18pamrb7fsm44
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2.3 Accolades & Accreditation
Heng Lee Coffee & Beverages Sdn Bhd is certified with some accreditation and certification
of quality. Accolades and accreditation are also meaning as promotion to tell the customers
that this company is qualified company and complying with strict standard provided by the
certifying body. Among accreditation and certified awarded to the company are;
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2. Makanan Selamat Tanggungjawab Industri (MeSTI) (Awarded by Ministry of Health,
Malaysia)
MeSTI Certification Scheme is the result of improvements to facilitate SK1M food
enterprise, in particular small and medium-sized enterprises (SMEs) to meet the
requirements set out in the Food Hygiene Regulation 2009. Until certification is issued,
food traders must be directed by MeSTI certification to establish and enforce a food safety
compliance system. The operators need to develop a system of planned and documented
practices and records of controls under the food security programme. Good monitoring of
the facilities, operating procedures, and traceability (traceability) are among the primary
elements of the food health security system.
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3.0 CONCLUSION
Students get a chances to learn from the entrepreneur on how to start, manage, and run a
business when running this assigment. On this matter, the entrepreneur was the 4th generation
of family business where it started as a small family business, growing to be one of the large
companies in the coffee business in Selangor. This gave the student oppurtunity to learn real
experience given by the entrepreneur during the interview. The entrepreneur is sharing the idea
in how the business was started and how to manage and running a business also attitude toward
successful entrepreneur.
To be an entrepreneur, the challenge was holding a lot of responsibilities where many risk had
been take in traits as an entrepreneur. Business plans also important in opening the road how
to improving a business even it a continuing running family business. Without proper planning,
the probability of success might reduce.
An entrepreneur should be study and learn how to maintain the business and how to make
people around know our product. One thing that should be highlighted is the method of
promoting products. A good promotion will secure the product marketing. Advertisment that
distributed through social media must be effective ways noways, although the frequency of ads
spamming through social media should be high intensity.
Last but not least, Focus is the most important traits to succeed. Growth of company should be
managed accordingly to ensure everything running smoothly. By implementing quality
assurance program, it could help in guide the company to achieve certain standards in business.
This awarded accreditation then will influence consumer in having confidence to the products
manufactured / marketed by the company.
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4.0 APPENDIX
PENGURUS,
Heng Lee Coffee & Beverages Sdn Bhd
Lot 62 & 63 Jalan Medan 3, Taman Medan Light Industrial Centre, 7 ½ Miles Off Jalan Klang
Lama, 46000 Petaling Jaya, Selangor Darul Ehsan
Tuan,
2. Sukacita dimaklumkan kepada pihak tuan bahawa pelajar dari universiti Mahsa (seperti
dilampiran) ingin menjalankan dokumentari secara temu-ramah dan akan dipersembahkan
dalam bentuk tontonan video berdurasi <15 minit yang bertempat di fasiliti tuan. Tugasan ini
adalah bagi tujuan pembelajaran program keusahawanan.
Sekian,
……………………..
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LAMPIRAN 1
Senarai Pelajar Yang akan terlibat
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LAMPIRAN 2
1. Introduce the owner of company (name, position, and how long run the company)
2. History of company started
What the company concept and where the idea came from
What the obstacles in running the business and how to handle
3. Introduce the company
What company goal, mssion and vision
How many employee
What the success of company
4. Place
How many branch, agent, distribution and logistic
Why location choosen and where
5. Product
What kind of service and product provide
What type of product introduce
What the price for averange product
6. Strategy
Marketing strategy / promotion /product and business advertisment
7. Operation
Method, process and thecnology use
8. Ending
Successful tips
And some advice how to become a successful entrepenuer.
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5.0 REFERENCE
Heng Lee Coffee & Beverages Sdn Bhd (n.d-a) About Heng Lee Coffee & Baverages Sdn
Bhd. Retrived October 30, 2020 from https://www.richboy.com.my/ourcompany.html
Heng Lee Coffee & Beverages Sdn Bhd (n.d-b) supply chain network. Retrived October 30,
2020 from http://www.richboy.com.my/our-supply-chain-network.php
Heng Lee Coffee & Beverages Sdn Bhd (n.d-c) our business standards. Retrived October 30,
2020 from http://www.richboy.com.my/our-business-standards.php
Heng Lee Coffee & Beverages Sdn Bhd (n.d-d) our product distribution services. Retrived
October 30, 2020 from http://www.richboy.com.my/our-product-distribution-services.php
Heng Lee Coffee & Beverages Sdn Bhd (n.d-e) our company strategy. Retrived October 30,
2020 from http://www.richboy.com.my/our-company-strategy.php
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