Entrepreneurship C14 SME Assignment

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FACULTY OF HEALTH & SPORTS SCIENCE

BACHELOR OF ENVIRONMENTAL HEALTH & SAFETY


(HONS)

ENTREPRENEUR MPU 3232

ASSIGNMENT

SMALL TO MEDIUM ENTERPRISE (SME) ON HENG LEE COFFEE &


BEVERAGES SDN BHD

TEAM MEMBER: BACHELOR OF ENVIRONMENTAL HEALTH & SAFETY


(COHORT 14 FLEXI)

ROSE WONG BEHP19096818


KEVIN BIN JUANIS BEHP19096826
GERARD B.Y. LINGGOU BEHP19096825
ARNI ANAK JAMIT BEHP19096819
ANDRISON ANAK JESI BEHP19096907
MOHAMAD AMIN BIN MAT ADAM BEHP19096914
Table of Contents

1.0 INTRODUCTION.............................................................................................................. 1

1.1 BACKGROUND .............................................................................................................. 1

1.2 COMPANY DETAILS .................................................................................................... 1

1.3 HISTORY OF COMPANY START-UP ......................................................................... 2

1.4 COMPANY VISION ....................................................................................................... 2

1.5 COMPANY MISSION .................................................................................................... 2

1.6 BUSINESS OPERATION ............................................................................................... 3

1.7 SUPPLY CHAIN NETWORK ........................................................................................ 4

1.8 PRODUCT DISTRIBUTION AND SERVICES ............................................................. 4

2.0 PRODUCT .......................................................................................................................... 5

2.1 FOOD & BEVERAGES ............................................................................................... 5-7

2.2 PROMOTION .................................................................................................................. 8

2.1 ACCOLADES & ACCREDITATION ......................................................................9-10

3.0 CONLUSION ................................................................................................................... 11

4.0 APPENDIX ....................................................................................................................... 12

5.0 REFERENCE ................................................................................................................... 13

LIST OF FIGURES

FIGURE 1 : WAREHOUSE FOR RAW MATERIAL ........................................................ 3

FIGURE 2 : ROASTING TEAM ........................................................................................... 3

FIGURE 3 : OPERATION ROOM........................................................................................ 3

FIGURE 4 : MIXING ROOM ................................................................................................ 3

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FIGURE 5 : COFFEE BEAN FROM SOUTH-AMERICA ................................................ 4

FIGURE 6 : COFFEE BEAN FROM GUATEMALA ......................................................... 4

FIGURE 7 : PRODUCT READY FOR DISTRIBUTION ................................................... 4

FIGURE 8 : PRODUCT PROMOTION ............................................................................... 8

FIGURE 9 : HALAL CERTFICATE .................................................................................... 9

FIGURE 10 : MeSTI CERTIFICATE ................................................................................. 10

LIST OF TABLE

TABLE 1 : COMPANY DETAILS ........................................................................................ 1

TABLE 2 : LIST OF PRODUCT ........................................................................................ 5-7

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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.

1.2 Company Details

Company Heng Lee Coffee & Beverages Sdn Bhd


Company Registration No. 201001030793 (914714-D)
Industry Food and Beverages
Founded Since 9 September 2010
Ownership Type Private
Business Summary The company specializes in the production of instant
coffee mixes and flavoured coffee powders
Total Staff 23 People
Headquarters Address Lot 62 & 63 Jalan Medan 3, Taman Medan Light
Industrial Centre, 7 ½ Miles Off Jalan Klang Lama,
46000 Petaling Jaya, Selangor Darul Ehsan
Telephone +603 7782 1851
Fax +603 7785 9618
Email sales@richboy.com.my
Website www.richboy.com.my
Tagline Richboy White Coffee Instant Satisfaction

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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.

1.4 Company Vission

To be one of the market leading in food and beverage industry in bringing the “RICHBOY”
brand known locally and global reach.

1.5 Company Mission

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.

Figure 1 : Warehouse for raw material Figure 2 : Roasting team


The company instant coffee beverages are produced via a blending process. During the
blending process, a predetermined golden ration of rock sugar and creamer is mixed with the
premium instant coffee to produce a powder mixture. The ratio along with the ingredients used
then will be adjusted according to the type of instant beverages products produced.

Figure 3 : Operation room Figure 4 : Mixing room

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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.

Figure 7 : Products ready for distribution

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2.0 PRODUCT

2.1 Food & Beverages

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.

The RICHBOY brand product are listed as below:

No Packaging of Product Name of Product

1. 3-in-1 White Coffee

2. 2-in-1 White Coffee

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3. 3-in-1 Hazelnut White Coffee

4. 3-in-1 Teh Tarik

5. 2-in-1 Kopi ‘o’ Coffee Mixture Bag

6. 3-in-1 Coffee Mixture Bags

7. Coffee Powder

8. Hazelnut White Coffee

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9. Instant Cappuccino

10. Instant Chocolate Drink

11. Instant Cocoa

12. Instant Mocha White Coffee

13. Tea Dust

Export White Coffee


14. (different country have different
packaging)

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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/

Facebook Page: http://m.facebook.com/RichboyWhite Coffee/

Instagram: http://instagram.com/richboywhitecoffee?igshid=18pamrb7fsm44

Figure 8 : Products free testing corner

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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;

1. HALAL (Awarded by Department of Islamic Development Malaysia (JAKIM))


Halal certification is an official form that refers to the Halal requirements provided by the
competent authority in respect of goods and/or services under the Malaysian Halal scheme.
The only Halal certification that can be recognized in Malaysia is the certification issued
by JAKIM (Jabatan Kemajuan Islam Malaysia).

Figure 9 : HALAL Certificate

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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.

Figure 10 : MeSTI Certificate

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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.

Management of business is also important. In the successful of a company is an employee


where its became the backbone in product progressing and also product quality. Therefore, as
advice from the entrepreneur, an employee should be taken care as a part of company family,
they will be part of successor of the company, where this will boost the productivity of the
companies. A good human resource and employee welfare program is well implemented in this
company.

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,

MEMOHON KEBENARAN MENJALANKAN DOKUMENTARI SECARA TEMU-


RAMAH BAGI TUJUAN PEMBELAJARAN PROGRAM ENTREPRENUESHIP DI
HENG LEE COFFEE & BAVERAGE S/B.

Dengan segala hormatnya perkara diatas dirujuk.

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.

3. Sehubungan dengan itu, saya berharap pihak tuan dapat mempertimbangkan


permohonan untuk menjalankan aktiviti ini di tempat tuan. Segala kerjasama dari pihak tuan
amat dihargai dan di dahului dengan terima kasih.

Sekian,

……………………..

(Mohamad Amin Mat Adam)

Wakil Pelajar Mahsa University

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LAMPIRAN 1
Senarai Pelajar Yang akan terlibat

Rose Wong BEHP19096818


Kevin Bin Juanis BEHP19096826
Gerard B.Y. Linggou BEHP19096825
Arni Anak Jamit BEHP19096819
Andrison Anak Jesi BEHP19096907
Mohamad Amin Bin Mat Adam BEHP19096914

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LAMPIRAN 2

1. Video durasi tidak kurang dari 15 minit


2. Wawancara di jalankan kurang dari 30 minit

Soalan temu-ramah berdasarkankehendak universiti dipersembahkan :

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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