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PMT Case Study
PMT Case Study
The company’s vision is to be leading white coffee brand in the Asia Pacific region by
providing high quality products to customers globally. Its mission states that ‘Our People:
We believe that our people are our assets’. The company believes that its human capital
is its most valuable asset and it is thus important to create a stimulating and motivating
working environment. It acknowledges its workers as people who grow together with the
company and appreciates its workers for their full dedication. Its workers are valued for
their efforts and what they are able to bring to the company. This is shown by providing
platforms and opportunities for career growth and enrichment knowledge in its workers’
development programmes. A dynamic and challenging workplace is provided to
encourage development of employees’ skills, talents and capacities. The aim is to
cultivate passion and to install dedication in delighting customers as an important work
value into its staff to bring forth their best efforts, experience and to retain customers’
loyalty.
Currently, OLDTOWN White Coffee outlets in west Malaysia have achieved 100% halal
status certification by the Malaysian Islamic Halal Board of the Islamic Affairs
Department. This recognition and certification will enable the company to bid and make
further ventures and investments into the halal market. The company also intends to
restructure its services-oriented business mode and move towards a self-service
concept, together with the launching a new range of set menus in their café outlets. For
its dedication, the company has received recognition and awards, both locally and
internationally. In 2017, it won the Gold Award for the Trusted Brand Awards – Malaysia,
organized by Readers’ Digest.
Sources: Adapted from Norlida, K, Za’faran, H, Rabiah, A W & Rohaya, M H,2018.
Principles of Management. 3rd ed. Malaysia: Oxford Fajar
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1. Why need to know about the evolution of management?
∙ Able to communicate efficiently through theories, and thus, move into more complex
2. List three (3) advantages and three (3) disadvantages of scientific management.
∙ High chances for building a good relationship between the worker and the
∙ It is unsuitable for small firms since it involves an enormous cost. Therefore, small
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∙ Mere speeding up the workers can lead to physical and mental disorder for the
workers.
∙ Management will increase the efficiency via general methods, working conditions, tools
and equipment. Since the output per employee is increased, there will be a
Theory X workers are categorized as lazy and dislikes works. They try to avoid
responsibility as possible as they can and seek direction from superiors. “The
Says, & Takue, 2017) “Therefore, the managers must control, direct and threaten
the workers with punishment in order to get them to achieve the organizational
objectives.” (Kamaluddin, N., 2018, P. 39) Theory X workers are mainly motivated
Theory Y workers are the ones that likes work. They willingly accept and seek for
responsibilities. The workers are ambitious and provide full contribution in their
task. “The workers will exercise self-direction if they are committed to the
objectives.” (Kamaluddin, N., 2018, P. 39) “The capabilities and calibre of the
workers are underutilized, who possess unlimited potential.” (S, Says, & Takue,
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2017) Theory Y workers are mainly motivated by non-financial rewards such as
4. From the case study, identify and explain environmental factors influenced
I. Political
This factors decide the government policies and felony elements that are assessed in
World”, 2020)
Business is exceedingly based on trade relationships. Trade relationships within the
same industries, in this case, the coffee industry that produce and consume
coffee products are drastically contributed in determining the final price tag of the
product. If there perpetuates any mishap within these industries, it will severely
affect the OLDTOWN White Coffee and enlarge manufacturing cost. (“PESTEL
II. Economic
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These elements are determinants of the financial issues that are bound to have an
impact on the commercial enterprise and have resonating lengthy time dimension
affects. (“PEST Analysis Definition and Examples in the Business World”, 2020)
Economic factors that influence OLDTOWN White Coffee is the growing incomes of the
consumers. As the buyers are becoming wealthy in this financial world, they will
have an impact on the coffee industry where as the consumers will most probably
III. Social
desires are frequent and what brings them to the market for a purchase. (“PEST
“The current trend in society towards foods and beverages is health consciousness.
Coffee is high in caffeine, which in turn may lead to sleep disorders, irregular
heartbeats and migraines in some people. This has led to reduced demand for
coffee in recent times. At the same time, this trend has equally given a greater
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demand for decaffeinated coffee products but with lower caffeine quantity.”
(Farooq, 2019)
Another social trend is fair trade. Fair trade is an international movement that seeks to
many middlemen that have historically reaped large profits. Importantly, the
coffee industry is one of the primary ambitions for the fair change movement. As
buyers exhibit increased demand for truthful exchange coffee products, the
farmers will earn extra and the middlemen earn less. However, fair exchange
ought to now not have an effect on the typical dimension of the industry, except
fair trade coffee prices (which are greater than regular coffee prices) drive away
IV. Technological
“How technology can either positively or negatively impact the introduction of a product
or service into a marketplace is assessed here.” (PEST Analysis Definition and
Another factor in the OLDTOWN White Coffee is the advent of new-specific appliances
such as coffee grinders and drip machines. “These multipurpose coffee machines
have helped to preserve the coffee culture in place. Since buyers are now also
buying coffee machines for their homes that allow them to brew coffee with the
most quantity of ease possible, this has resulted in a dip in the consumer
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scale who would have in any other case purchased their coffee from a readymade
vendor. Vendors are now attempting to innovate new recipes that will help
The development of coffee machines is also a factor that influenced OLDTOWN White
Coffee. This indicates that coffee machines are getting less expensive in the
business market. This leads to consumers can now make their very own coffee at
homes rather than buying outside. The development of coffee machine also
means that coffee machines can be bought by small firms, which in turn increase
the competitors within the industry. (“PESTEL Analysis of the Coffee Industry”,
2019)
V. Environmental
“These factors relate to the effect of the surrounding environment and the impact of
condition of the nature such as earthquakes and drought in which it affect the
harvest. This result the change of the quantity and the supply of coffee beans.
VI. Legal
“Legal factors are exterior elements which refer to how the law influence the way
businesses operate and clients behave.” (Legal Factors Affecting Business, 2016)
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The coffee industry, like the entire other industries, is furthermore exaggerated by
minimum possible wage laws as well as laws regarding bribery and corruption in
the international location in which they are choosing to act business. (“PESTEL
Another legal factor is the food standards. Many countries are placing strict regulations
on the quantity of caffeine the beverages can contain and this has sharply hit the
coffee industry. People who desire excessive amounts of caffeine in their drinks
then referred to as the human relations motion due to its focal point on the human
behavioural perspective which are the Hawthorne Studies, Theory X and Y, and
people to work harder and perform better when they are being observed as part of
an experiment.” (The Economic Times, 2020) “Theory X and Theory Y are based
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on the premise that management has to assemble all the factors of production,
including human beings, to get the work done.” (Greyson, 2016) “Maslow’s
(Mcleod, 2020)
From the case study, it mentions that the company believe that the workers are a huge
motive for the company’s growth. Its mission as well states that ‘Our People’ in
which that they believe that their people are their assets. They additionally
admitted that as the company grow, the workers are also enhancing their selves
professionally and thus, value their full dedication. Therefore, it states that the
company providing platforms and opportunities for career growth and enrichment
passion and the dedication produce by workers to fulfill the customers and to
retain
customers’ loyalty.
As a result, this indicates that the workers of the OLDTOWN White Coffee are
responsibility and give priority in their work. They are certainly ambitious and
contribute in their work. They are internally prompted as they work to achieve the
OLDTOWN White
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Coffee trust their employees and believe that they will provide the first-rate of their
work. Furthermore, the managers will often involve their employees and ask their
from https://www.businessmanagementideas.com/scientific
management/advantages-and-disadvantages-of-scientific-management/20259
2) Farooq, U. (2019, October 30). PESTLE Analysis of the Coffee Industry. Retrieved
of-the-coffee-industry/
3) Greyson. (2016, June 13). What is Theory X and Theory Y? definition and
from https://businessjargons.com/theory-x-theory-y.html
from https://courses.lumenlearning.com/wmopen
humanresourcesmgmt/chapter/behavioral-management-theories/
FAJAR
6) Legal Factors Affecting Business. (2016, July 13). Retrieved August 27, 2020,
(2020, March 20). Maslow's Hierarchy of Needs. Retrieved August 29, 2020, from
https://www.simplypsychology.org/maslow.html
8) PEST Analysis Definition and Examples in the Business World. (2020, May 28).
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9) PESTEL Analysis of Coffee Industry. (2020, March 29). Retrieved September 01,
industry/amp/
10) PESTEL Analysis of the Coffee Industry. (2019, October 20). Retrieved
September 01, 2020, from https://pestleanalysis.com/coffee-industry-pestel
analysis/amp/
11) S, S., Says, T., & Takue. (2017, July 08). Difference Between Theory X and
from https://keydifferences.com/difference-between-theory-x-and-theory-y.html
12) What is a PESTEL analysis? (2020, February 05). Retrieved August 29, 2020,
from http://economictimes.indiatimes.com/definition/hawthorne-effect
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