UNIVERSITI TEKNOLOGI MARA

FAKULTI PENGURUSAN HOTEL DAN PELANCONGAN

KAMPUS DUNGUN TERENGGANU
23000 DUNGUN TERENGGANU

GROUP ASSIGNMENT
A STUDY OF ISSUES AND CHALLENGES IN MANAGING HALAL AND TOYYIB
BUSINESS IN COMPANY OF NZ CRUNCHIES

PREPARED BY:
NAME STUDENT ID GROUP
NORAISHA NABILA BINTI ISMAIL 2018248222 HM2405Ba
NUR ALIA BINTI MD ALIUDIN 2018437348 HM2405Bb
ALIF AKRAM BIN SAHARUDIN 2018259996 HM2405Bb
MUHAMMAD FAKHRULLAH BIN MOHD 2018673964 HM2405Bb
RAHAYUDIN

PREPARED FOR: DR. NOR ADILA BINTI MOHD NOOR

SUBMISSION DATE: 14 DECEMBER 2020 (MONDAY)
 ACKNOWLEDGMENT

First and foremost, praises and thanks to The Almighty God for His showers of blessing
throughout our group assignment report for subject CTU695 Halal Standard, Food Law and
Sanitation to complete this report successfully and to all the opportunities, trials and strength
that have been showered to us to finish write this report for assignment study of issues and
challenges in managing halal and toyyib business in company of Nz Crunchies.
A big thank you for Owner of this product is Mr.Syahmi for willing to spend time with us
to do online interview sessions and with the cooperation of the company Nz Crucnhies we
managed to complete this report successfully. We wish to express our deep and sincere
gratitude to this subject CTU695 Halal Standard, Food Law and Sanitation lecturer by Dr.Nor
Adila Binti Mohd Noor for all the knowledge given during her classes through online. We are
extremely grateful and indebted to her for her expert, valuable guidance and encouragement
extended to us. It was a great privilege and honor to learn under her guidance.
Besides that, big thank to all the group members that always support each other’s until
we complete this report for Group Assignment 1. Lastly, our deepest gratitude goes to all family
members, it would not be possible to write this report without support from them. Last but not
least, our parents are also an important inspiration for us. So, with due regards, we express my
gratitude to them.
 CONTENTS
1.0 INTRODUCTION………………………………………………………………………….……...1
1.1 ORGANIZATION CHART………………………………………………………...…….2
1.2 FLOW OF THE PRODUCTION PROCESS FOR NZ CRUNCHIES……………...……3
1.3 DETAIL ABOUT PRODUCTS FROM NZ CRUNCHIES……………………….…...…4
2.0 PROBLEM STATEMENT………………………………………………………………………...5
3.0 OBJECTIVE OF THE STUDY……………………………………………………………………6
4.0 LITERATURE REVIEW…………………………………………………………………………...
4.1 THE MEANING OF HALAL TAYIBBAN……………………………………….….….7
4.2 THE QUALITY OF HALAL FOOD………………………………………………….….8
4.3 NUTRITIOUS IN NZ CRUNCHIES………………………………………………….….8
5.0 METHODOLOGY (DATA COLLECTION PROCESS) ………………………………………….
5.1 INTERVIEW SESSIONS………………………………………………………………....9
5.1.1 INTERVIEW BY PHONE CALL…………………………………………....9
5.1.2 INTERVIEW BY WHATSAPP………………………………………....….10
6.0 FINDING AND DISCUSSION……………………………………………………………….…….
6.1 RISK MANAGEMENT TAKEN NZ CRUNCHIES…………………….………...11 – 12
6.2 COMPANY REVENUE BY MONTH AND YEAR…………………………….……...12
6.3 ISSUE AND CHALLENGES………………………………………………………..….13
7.0 CONCLUSION AND RECOMMENDATIONS…………………………………………...……14
8.0 APPENDICES……………………………………………………………………….……...15 – 16
9.0 REFERENCES………………………………………………………………………………...…17
1.0 INTRODUCTION
Managing a product halal and toyyib in business have many of issues and challenges.
But our group fined one of the viral products is Nz Crunchies which is hot in the market now.
Nz Crunchies is one of the products produces by Nz Frozen Industries Sdn Bhd and this is one
of the company evolving by using creative ideas for new product development to meet
customer needs and want to continued growth with strength and dedication for their team
management.

Nz Crunchies is of the product which is very popular because of has a cheap price and
is very tasty. The owner of this product is Mr. Syahmi, he is very friendly and easy to
communicate to collect the data about this product from interview session using the online
platform. Mr. Syahmi is the owner of the Nz Crunchies under the company Nz Frozen
Industries Sdn Bhd. The product of Nz Crunchies has been established for 2 years until now
and has a lot of customers buy this product through online and walk in. The address for Nz
Crunchies shop at Lot 147 Puteri Park Plaza, Jalan 28 68000 Ampang, Selangor. The company
of Nz Crunchies is started as an online business but after have a lot of request they also sell this
product as physically at their shop.

In media social, Nz Crunchies is one of the famous products. Under the Nz Crunchies
the amount of stockist is 100 people and also have 1000 agents in Malaysia. Both of these is
only need to sell and promote product from Nz Crunchies. Nz Crunchies is a product to suit
the tastes of food lovers with a crunchy and delicious taste, these Nz Crunchies brand snacks
are also suitable to eat anytime and anywhere. Nz Crunchies Product is melting in the mouth
and also prefect snacks to all the foodies in Malaysia. Nz Crunchies have five flavour which is
milky matcha, savoury chicken floss, cheese primo, golden salted egg and lastly chocolate
supreme and three new flavour, which is korea Bbq, Roti bakar and seaweed teriyaki. The
picture below is list of the flavour from Nz Crunchies. In the social media, Nz Crunchies is one
of the famous products that have many of customers and follower. Below is list of the social
media of Nz Crunchies and the address of their factory.

VIRAL CRUNCHIES

NZ CRUNCHIES

MANUFACTURED BY NZ FROZEN INDUSTRY JOHOR BHARU

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 1.1 ORGANIZATION CHART FOR COMPANY NZ CRUNCHIES

FOUNDER
MR. SYAHMI

ACCOUNTING &
HUMAN RESOUCES SALES & MARKETING
FINANCIAL

STOKIST

AGENT AGENT AGENT

DROPSHIPS DROPSHIPS

Based on the organization above, the company Nz Crunchies have a small organization because
of they run the small business for product Nz Crunchies but during the interview session by
call, one of the staff HQ Nz Crunchies tell they have 100 stockists in Malaysia and also 1000
agents Nz crunchies. Besides that, they also have more than 100 dropships to promote and sell
the product Nz Crunchies. All above we get from interview session by call and WhatsApp, but
the founder for this product did not share anything about the organization for production
because of they say all the things is private.

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1.2 FLOW OF THE PRODUCTION PROCESS FOR NZ CRUNCHIES

Nz Crunchies is the product which is made of Popiah skin which is cut into squares and
then fried until crispy and this product have five flavour and two new flavour. The flow of
the production process for the product Nz crunchies is based on the interview session by
WhatsApp with the founder Mr. Syahmi.

CHOOSE THE PREMIUM POPPY SKIN

CUT IN SQUARE

FRIED UNTIL THE POPPY SKIN LOOK

CRISPSY

LIFT AND COOL BEFORE PLACING THE

FLAVOR

PUT THE FLAVOR

(5 FLAVOUR AND 2 NEW FLAVOUR
)
PRODUCTION PROCESS FOR NZ CRUNCHIES BASED ON INTERVIEW
SESSION BY WHATSAPP WITH THE FOUNDER

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1.3 DETAIL ABOUT PRODUCTS FROM NZ CRUNCHIES
(After the flow of production process for product Nz Crunchies and this is the final look)

There are 8 flavour from product Nz Crunchies is:

➢ Golden Salted Egg

➢ Cheese Primo
➢ Chocolate Supreme
➢ Savoury Chicken Floss
➢ Milky Matcha
➢ Korea BBQ (New Flavour)
➢ Roti Bakar (New Flavour)
➢ Seaweed Teriyaki (New Flavour)

This product is manufacture by Nz Frozen Industries SDN BHD at Johor Bharu, Johor but this
product has run by Mr.Syahmi. The detail about this product is the weight is 220 gram and will
sell the price is RM10.00 per box. The ingredients in this product that have been label at the
product is have chicken floss, wheat flour, filtered water, chili, sugar, salt and also different of
flavour.

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2.0 PROBLEM STATEMENT
The problem statement is explained about the issue will faced or the condition to be
improve in this business. Nz Crunchies is one of the products below the Nz Frozen Industries
SDN BHD, but the founder of Nz Crunchies is a Mr. Syahmi need to run this business from
beginning until now. Mr. Syahmi is one of the founders for Nz Crunchies that need market
their product but the lack of the experience to running the business that always make an owner
of the business make a mistake.

The issue faced by this product from beginning until now is a firstly maybe many of
competitors that produced the same product. Therefore, this company always produces
products that are different from others in various aspects for example, quality, price and also
the materials used to attract customers. This company very concerned about the quality
produced and the benefit when eating the Nz Crunchies. Besides, being a founders for one of
the business is not easy, this is statement say by Mr.Syahmi during the interview session. One
of the issues can be related is a lack of proper marketing. Marketing is one of the important
things can make this product attracted many people as a customer. Nowadays social media is
not a necessity but an essential part of every business to market their product. But for Nz
Crunchies their have a good marketing and have stockist, agents and also dropship in the social
media that will promote Nz Crunchies and 70% profit come from social media.

For this company, they are always trying to solve every issue has face to avoid any of
problem in the future. The founder of Nz Crunchies hopes that one day they can become a big
company that sells a variety of foods that are easy to eat and nutritious.

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3.0 OBJECTIVE OF THE STUDY
Objective of the study for issues and challenges in managing halal and toyyib business in NZ
crunchies.

• To learn more about how NZ crunchies manage to overcome issues and challenges in
managing halal and toyyib business.
• To study about the process of managing halal product in business.
• To gain more knowledge on how NZ crunchies maintain their product in halal food and
business for future references.
• To assess the awareness and perception of the study community regarding for issues
and challenging in managing halal and toyyib business in NZ crunchies.
• To know more about the product that has been use by NZ crunchies to maintain the
halal and toyyib product.
• To learn more on how to improve the quality of product in halal ways.

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4.0 LITERATURE REVIEW

4.1 THE MEANING OF HALAL TAYIBBAN

Halal, the root word of Halalan simply means 'permissible' or 'lawful.' Halal also means
'approved by the law of Syariah without penalty put on the doer.' The opposite of Halal is
Haram, which is "forbidden, illegal. “In the meantime, Toyyib, root word of toyyiban means
'healthy.' Therefore, Halalan Toyyiban means that the commodity is 'permissible for use or use
and must be good and advantageous to the user' (Jakim 2018)

The principle of Halalan Tayyiban takes into account both of the physical and moral
effects of food for mankind. Halalan Tayyiban can be understood in this regard as food that is
required to be eaten (halal) and can Offer the human body advantages. In other words, the food
listed as Halalan Tayyiban meets the two requirements. Firstly, the food is halal and takes from
a halal source and secondly it is a quality food. Foods not listed by these two conditions It
should also be stopped as Halalan Tayyiban. Linguistically, halal is described as anything to
be tolerated and not punished if carried out (Sa'id Abu Jayyib, 1998). It is classified as
allowable, permissible, lawful and legal (Mohammad, 1993). In short, this means something
not forbidden and it is lawful, particularly food and meat from ritually slaughtered animals
(Cyril,1989).

The application of the principle of Halalan Tayyiban suggests that halal food
determination encompasses both the visible and the intangible dimensions of food. Food
classified as halal is high quality, hygienic and healthy to eat. Furthermore, this definition
extends from the initial preparation of the food to the final harvest (Arif & Sidek ,2015). This
involves cooking, producing and distributing food before it is served to consumers. The
Tayyiban definition does not mean that food should be halal, healthy, tasty, delicious and pure.
Furthermore, what is beneficial to the body is also beneficial for the mind and spirit of human
beings (al-Ghazzali, n.d). Furthermore, Sazelin & Ridzwan (2011) said that the high-quality
food, bounded by Islam, has a clear linkage in the production of strong human resource
efficiency.

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4.2 THE QUALITY OF HALAL FOOD
According to Halal Malaysia, in the 1975 Commerce Description Order (Use of the
term "Halal") the meaning of Halal is as follows if in any manner whatsoever this phrase is
used in conjunction with food, in the process of exchange or commerce in relation to an element
of trade or in relation to trade in food, the terms 'Halal,' 'Guaranteed Halal,' and 'Muslim Food'
or any other words that may or can be interpreted as implying to mean that they are acceptable
for consumption by Muslims and permissible in an irreligious way.

i. Does not derive from or constitute any part or object of animal forbidden by Islamic
law to Muslims or animals not slaughtered by Islamic law.
ii. Does not include a material that is considered to be impure by the Islamic law.
iii. Is not cooked, handled or manufactured using impurities-free equipment or utensils.

Based on (R. Mohamed Yunus,2017) When you understand the values and practice of
Halal, you will understand that Halal is also connected to green. The Halal certification is based
on food and its preparation's hygienic, nutrition and safety issues while green management
focuses on reducing the harmful effects on the ecosystem of human activities. Green
management or EMS seeks to provide customers with confidence that their corporate practices
are in accordance with the ecosystem.

4.3 NUTRITIOUS IN NZ CRUNCHIES

NZ Crunchies have 5 types of flavor which is Milky Macha, Savory Chicken Floss,
Cheese Primo, Golden Salted Egg, Chocolate Supreme and three new flavors. Based on the
ingredient that used in NZ Crunchies product all the ingredient is halal. The main ingredient of
the NZ crunchies product is Popiah Skin and Popiah Skin is made from flour and salt. The
nutrient that got in the product is protein and carbohydrate. Furthermore, the NZ Crunchies
have their halal certificate from JAKIM Malaysia. Other than that, the owner of the NZ
Crunchies is a Muslim so consumer don’t have to worry about their halal status, this is because
for Muslims, worship which worships God the Almighty must be the basis of every action.
(Cholil Nafi, 2019). God said: “I did not create the jinn and mankind except to worship” (adz-
Dzariat: 56). The eating activity is also a means of worship with rules and procedures
according to the Sharia (Cholil Nafi, 2019).

8
5.0 METHODOLOGY
For this project assignment, we use the primary data and secondary data to collect the
information about issues and challenges in managing Halal and Toyyib business in NZ
Crunchies. Primary data is data that is collected from first-hand sources using methods like
surveys, interviews, or experiments. While secondary data is involves analyzing data collected
by someone else.

5.1 INTERVIEWS SESSION

We had interviewed the owner of NZ Crunchies using two ways communication. First, we
make a phone call and the second one is through WhatsApp chatting to us know the details
about the company.

5.1.1 INTERVIEW BY PHONE CALL

To get the information from NZ Crunchies HQ, we make the phone call first to get the
permission from the company. So, through the phone call we already ask a few questions to
the sales and marketing department, Mr. Faizul. So, example of questions that we had asked to
him are “the revenue per month of the company?”, “the risk management taken?”, and “the
issues and challenges of the company?”.

The picture above is proof that one of our group contacted HQ Nz Crunchies for an interview
session but only a few things were told the rest of them asked us to contact the founder Mr.
Syahmi by WhatsApp.

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5.1.2 INTERVIEW BY WHATSAPP

The other information about the company we direct with the owner, Mr. Syahmi. These is
because some information of any company, we must get permission from the owner. So, the
questions that we asked to the owner are “the organization of the company”, “the process of
the product”, and “the certificate halal of the company”. The owner of the company gives the
kind responds to us. We get all the accurate information from NZ Crunchies company.

(All the picture above is an interview conversation with Mr. Syahmi the founder of Nz Crunchies)

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6.0 FINDING AND DISCUSSION
6.1 RISK MANAGEMENT TAKEN NZ CRUNCHIES
Risk management means of planning for the worse and minimizing any unexpected
occurrence. That could have a negative effect on the finances and costs of the business.
Company managers must have a plan for detecting threats. They should also pursue a step-by-
step strategy to detect possible market threats in the future. The following overview is a general
method used by small firms to define company risks.

Risk management is critical when it communicates risks to organizations in their

organizational environment and helps them to reduce risk preventively. In the lack of risk
control, organizations will face significant losses because of the blindness of risks.

The first risk management take by NZ Crunchies is operational risk, often companies
are so concerned about external concerns that they cannot create a well-defined risk control
strategy in order to tackle future operating challenges within the organization. These threats
may include daily operating errors, technological failures, or personnel problems. And this
form of risk can appear marginal relative to other risks. For example, NZ Crunchies have to
face the machine of making the snacks not working, after that they have to handle a lot of agent
and drop shippers so they may be hard for the company to control all of them. The way to
unsolved this problem is by always have their expertise in their maintenance department and
sales department to control the problem.

After that is, reputational risk, either large or small, the credibility of an organization is
essential for the success of any ongoing company. Reproductive harm can lead to loss of sales,
loss of associates and loss of consumers, as well as personnel problems. It is important to execute
a successful business plan that will shield from this possibility. The recruiting of the correct
accounting firm, personnel, managers and a successful marketing department would help to
reduce this risk.

Next, is compliance risks. If the company does not comply with all the relevant laws and
regulations, the company will pose a compliance risk. That can also happen if the company
expands and they avoid monitoring enforcement measures. For example, NZ Crunchies have to
get halal certificated in order to make sure the product is safe for Muslim to eat their product.
After that the product must be free from harmful things in order to sell their product in market,

11
so they have to hire expertise to monetize the quality of the product. In order to make their
product relevant in market they have to make sure their product is halal and safe.

Lastly is, financial risk This type of risk refers to the possibility for a sudden monetary
loss. Cash will flow into and out of the company. In some cases, the probability of this may be
high. Everyone knows due to covid-19 all the business has been affected also the NZ Crunchies
also have been affected by the covid-19, so in order to prevent this thing keep to happens,
sometimes they do some shocking sales in order to attract more customer and they will gain
more sales.

6.2 COMPANY REVENUE BY YEAR AND MONTH

Revenue is the amount of money that a business gets in exchange for products and
services or in return, what a buyer pays for the goods or services it receives. Revenue earned
by a corporation commonly occurs as revenue, sales, total sales or net revenue on the first row
of the return.

Companies pay more interest to this item than anything else because it is the main factor
deciding how their company operates. It specifically shows a company how much money it
earns from the selling of its items. Revenue changes should be evaluated in order to decide
what marketing campaigns succeed, how price changes influence commodity demand and
various other views

Revenue is registered at the time of sale where the goods or services are sold. Revenue
is not registered on receipt of payment, but in advance. This is because businesses also market
credit goods that are payable later. This line item is the balance sheet of a company and the
sum that the company is supposed to receive as taxes. Profits are not raised, as previously
reported before the invoice is actually made. Accounts receivables are lowered in the balance
sheet and cash rises.

From the interview that we have made with Mr. Syahmi, the averages revenue of their
stockiest is around three thousand to five thousand per month and they have 100 of stockiest.
The average revenue for stockiest in a year is about RM.52,000 thousand. While the revenue
for the Head Department for a month is more than RM 50,000 per month. The revenue of the
year for Head Department of NZ Crunchies is about RM 500,000 or more per year.

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6.3 ISSUE AND CHALLENGES
The issues and challenges that NZ Crunchies has faced is rising cost of food. Based on
trading economy website food prices in Malaysia increase by 1.5% year on year in October
2020 after a 1.4% rise in the previous month. It has been the fastest rate of food inflation since
June, with prices increasing faster: fish and meat (1,6% versus. 0,6% in September), oils and
fats (1,9% vs. 1,7%), fruits (2.3 percent versus 1.8 percent). Costs have started to grow for
foodstuffs, i.e. (2.6% versus 2.7%), vegetables (4.2% versus 5.1%), sugar, bread & other
cereals (0.8% versus 0.8%) and food away from home (1.8 percent versus 1.9 percent). Cost
decreased more for both sugar, jam, honey (-0.7% vs. -0.7%) and milk, cheese and eggs (-2.7
percent vs -2.5 percent). These things effected the produce of the NZ Crunchies product
because when the demand of the food low but the price of food increase, they have to maintain
the price of the product in order to keep their loyal customer, agent and drop shippers to buy
their product.

After that is the have to challenge with healthy product. In this modern era consumer
more prefer in eat healthy, so from that the NZ Crunchies have to challenges with others health
snacks that available in market. For example, all of them are now more driven to buy items that
they feel closer to health and well-being, such as artificial foods, GMOs or pesticides. This
resulted in cleaner labels and a rise in non-GMO and organic products which placed pressure
on major food and beverage firms to respond to this trend.

Next, the challenges of NZ Crunchies in doing research and development of their

product. To make their product reliable, tasty and safe they have to go through with different
phase to finalize their product. The research and development of these product also cost a lot
of money before they can sell to the market. After that the habits or trends of consumer also
changes from time to time, so from that they have to comes with new product to keep their
names in the market. For example, the new product that NZ Crunchies has produce is Roti
bakar and seaweed teriyaki which is the snacks is healthier.

Lastly, the challenges that NZ Crunchies have to face is regulatory guidelines are often
important, allergens must be reduced or correctly highlighted, waste should be handled, the
margins must be improved and the need for planning for any unforeseeable circumstances.
They have to make a lot of backup plan, because due to covid-19 the business or food industry
is not predictable, so from that the NZ Crunchies always have to have a new idea and expend
their product not to one product only.

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7.0 CONCLUSION AND RECOMMENDATIONS
For the conclusion of issues and challenges in managing halal and toyyib business in
company of NZ crunchies we all know how much important of managing halal and toyyib in
business because as a Muslim we must obey and know the halal standard and food law in Islam.
For what we get from these studies we know that how well the NZ crunchies company manage
with issue and challenges for producing the halal product in marketing sector. NZ crunchies
also taught us on how to manage the product in law of Islam of food industries.

We also glad that by learning this from the owner of this product we also can learn on
how to make our own food products in future. From this perspective also, we learn a lot about
how NZ crunchies has become a successful product that has been produce by a Muslim and
that is make us want to know more about the process, issues and challenging in managing halal
and toyyib food in this company.

We also would like to add a little bit suggestion about what we have learn from CTU695
and we hope that this suggestion could be implement in NZ crunchies on upcoming days. For
the suggestion that we would to give is that we hope that NZ crunchies can upgrade their
marketing in many more platform not just in social media but also is medium mass that is one
day we hope that NZ crunchies can promote their product in newspaper, magazine and so much
more.

We hope that our student also can be inspire to learn more about on how to overcome
the issues and challenges in managing halal and toyyib for business company such as NZ
crunchies has been doing this day.

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8.0 APPENDINCES

(The picture above is a proof that the product Nz Crunchies has a certificate of Halal)

15
(This picture above shows the label for Nz Crunchies product for flavour Golden Salted Egg)

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9.0 REFERENCES

Arif, S., & Sidek, S. (17 november 2015). Application of Halalan Tayyiban in the
Standard Reference for Determining Malaysian Halal Food. 11. Retrieved Décembres 7, 2020,
from https://pdfs.semanticscholar.org/2825/600f4219fff62cb7549f99f60f5c774f4c66.pdf

Cholil Nafi, M. (2019). THE CONCEPT OF HALAL AND THAYYIB AND ITS
IMPLEMENTATION IN INDONESIA. Halal Product and Research. Retrieved December
7, 2020, from
https://www.researchgate.net/publication/333923737_The_Concept_Of_Halal_And_Thayyib
_And_Its_Implementation_In_Indonesia

Difference between Halal and Halalan-Toyyiban - TheRiceBowl Asia powered by DPO

International. (2018, April 17). Retrieved December 07, 2020, from
https://www.ricebowlasia.com/difference-between-halal-and-halalan-toyyiban/

Rahimah Mohamed Yunus, (n.d.). Trustworthiness of halal products among Muslim

consumers. Retrieved December 6, 2020, from
https://www.researchgate.net/publication/320407133_Trustworthiness_of_halal_products_am
ong_Muslim_consumers

Rahimah, M., Che Faridah, C., & Nor Hafizah, A. (2013). Understanding Mechanisms
to Promote Halal IndustryThe Stakeholders’ Views. Understanding Mechanisms to Promote
Halal IndustryThe Stakeholders’ Views. Retrieved December 7, 2020, from
https://pdf.sciencedirectassets.com

Snek Terlazat Abad Ini. (2020, November 16). Retrieved December 07, 2020, from
https://nzcrunchies.com/

Sazelin, A., & Ridzwan, A. (2011). Food Quality Standards in Developing Quality
Human Capital: An Islamic Perspective. African Journal of Business Management, 5(31),
12242-12248. http://dx.doi.org/10.5897/ AJBM10.1692

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