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ENT CASE Study

Principles of Entrepreneurship (Universiti Teknologi MARA)

Studocu is not sponsored or endorsed by any college or university

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FACULTY OF BUSINESS ADMINISTRATION

DIPLOMA IN BUSINESS TRANSPORT

ENT300
FUNDAMENTALS OF ENTREPRENEURSHIP

CASE STUDY

LECTURER’S NAME:
MDM. DAYANG KAMISAH AG BUDIN

PREPARED BY:

GROUP MEMBERS ID NUMBER

MAZNE BINTI SELIN 2017252098
SAZFIRAH BINTI SURYA 2017251796
NUR AMEERA BINTI AFFENDY 2017252016
NUR AISAH BINTI AWANG BUNGSU 2017223504

GROUP:
BA1175A1

DUE DATE: 08th NOVEMBER 2019

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TABLE OF CONTENT

No. Content Page

1.0 ACKNOWLEDGEMENT 1
2.0 EXECUTIVE SUMMARY 2-3
3.0 INTRODUCTION 4
4.0 COMPANY INFORMATION
4.1 Background
4.2 Organizational structure
4.3 Product / service
4.4 Business / marketing / operational strategy 5-9
4.4.1 Business strategy
4.4.2 Marketing strategy
4.4.3 Operational strategy
4.5 Financial achievement
5.0 IDENTIFICATION OF MAIN ISSUES PROBLEMS 10
6.0 SWOT 11
7.0 BUSINESS MODAL CANVAS 12
8.0 SUGGESTION ON APPROPRIATE SOLUTIONS 13
9.0 CONCLUSION 14
10. REFERENCES 15
0
11.0 APPENDICES 16-17

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1.0 ACKNOWLEDGEMENT

First of all, we would like to thank Allah S.W.T because of His blessings, it is
possible for us to complete this group project. We managed to finish this group
project with great enthusiasm and determination.
We would like to thank University Teknologi Mara Cawangan Sabah for giving
us to use the facilities provided such as library and IT laboratories to help us to do
some research.
Then, we would like to express our deepest thanks to our Fundamentals of
Entrepreneurship’s lecturer named Madam Dayang Kamisah Binti Awang Budin.
She had guided us on how to complete this case study. Every week, she will assist
and help us to complete this case study.
Besides, we would like to express our deepest thanks to our parents because
they have been supporting us since we were young until now. They are the ones who
have been providing us money and shelter to live.
Last but not least, we also would like to thank our friends who had supported us
to complete our assignment effectively and efficiently. They gave us many helpful
comments which helped us a lot in preparing this group project.

Page 1

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2.0 EXECUTIVE SUMMARY

Big Apple Donuts & Coffee is a store that is selling donut and beverage with
service industry. With idea “More Than Just a Donut”, the entrepreneurs aimed to
change the perception that the donut was just a donut. They designed types of
donuts in a delightful range with low calories scale without cut costs at the quality
and flavour of donuts. The idea of freshly donuts with different choices of filling
and garnishing came from a group of passionate individuals who have vast
experiences in the food and beverage come out with a tag-line “Every Piece Is a
Masterpiece”.

The report will contain the company information such as background,

organizational structure, product and services that provided, the business, marketing
and operational strategy and financial achievements, the main issues problems, the
strengths, weakness, threat and opportunity (SWOT) analysis , the business model
canvas (BMC) analysis, and the suggestions on appropriate solutions.

The report begins with the environment of Big Apple Donuts & Coffee which is
mainly focus on the urban environment and aim towards the urban community as
their target. Children, students and government employees are targeted with their
large variety of products consisting of donuts and coffee to fulfill the customer
appetite regardless of age. All of products are sold at a reasonable price. Big Apple
Donuts & Coffee offers a wide selection of premium donuts, with a range of
tantalizing coffees and a charming variety of tea creations. Its exceptional donut
qualities come from a unique premix formula with a carefully selected blend of over
20 imported ingredients, producing donuts known for their hallmark freshness and
fluffy soft texture.

This brand has successfully penetrated into the local market especially being in
major shopping malls (One Borneo Shopping Mall) in Sabah going against Dunkin
Donuts as their main competition. With each having their own identity and
strategies to attract their customers, Big Apple Donuts & Coffee stands out by using
the café concept and does not only focus on donuts like other competitors.

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In Big Apple Donuts & Coffee their business strategy into the market is by
serving variety of donuts to the children, students, and government employees as
their target customer. The marketing strategy that being used is promotion strategy
which done by the headquarters at Kuala Lumpur. Usually, they advertise it at
Facebook, TV Channel and advertisement at the cinema as their medium to do their
promotion. As for their operational strategy, the process of making donuts are done
through different process such as preparing the dough, baking and the toppings
which they do it manually. For their business hours is from 10am to 10pm and the
operation hours from 7am until 10pm.

The SWOT analysis helps Big Apple Donuts & Coffee in developing a strong
business strategy as they have made known all the factors that factors will help them
stay as the best against their competitors. Their strength are from their experienced
staff and donuts flavour that always came up with a new one. While their weakness
are the new staff cannot stay longer with them due to they have stand up in a longer
period of time. For opportunities, their brand is very well known in Malaysia and
they have planned to take the opportunity to increase productivity to become number
one choice for everyone. Last but not least, the threat that they have to face in
finding a staff with good quality in order to maintain the store achievement.

The last part of this report is the BMC analysis and the solutions to issues that
disturb the business progress. By having the stock spare parts can solve the defected
machinery problems and renting for a bigger lot can solve the problem insufficient
space at the store. In conclusion, this report has shown a clearer picture of the
important activities in the Big Apple Donuts & Coffee business.

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3.0 INTRODUCTION

Entrepreneurship education seeks to provide students with the knowledge,

skills, and motivation to encourage students to start doing their own business. As for
UiTM, they have introduced the subject of Fundamental of entrepreneurship
(ENT300) as the syllabus for students semester 5 of Faculty Business Management.
For this subject, our second assignment will required us to do a case study which we
need to go for an interview at the companies, restaurants, or any other stores to know
their performance or management strategy on how they run their business
successfully.

As for our group, we decided to do the interview at Big Apple Donuts & Coffee
at 1Borneo Hypermall branch. We choosed Big Apple since it is easy for us to go
and we are familiar with the store. Besides, we choosed BIg Apple because their
store already become a well-known store since they run their business for a very
long time already.

The purposes of this project is to fulfill the subject’s requirement for this
semester as our case study that will provide 20% marks throughout the semester.
Moreover, this study is conducted to learn how the business managed to stay at the
field with the existence of many competitors. Other than that, we also can gain
experience on how to do an interview with people. When we do this case study, we
managed to learn on how to interview people especially the big organization and
learn how to communicate with them since we are still students and still in the
learning process in business industry. Last but not least, this project is to identify the
important component in a company.

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4.0 COMPANY INFORMATION

4.1 Background

Big Apple Donuts & Coffee is founded by Mike Chan. It is a cafe retailer in
Malaysia specializing in donuts and coffee. The company is owned and managed by
Big Apple Interasia. Big Apple Donuts & Coffee opened its first outlet and began
trading in 2007. The first outlet located at The Curve in Damansara, Selangor. In
Sabah, there are 3 Big Apple outlets that they opened which is at City Mall, Warisan
Square and the famous one is at 1Borneo Hypermall.

Big Apple Donuts & Coffee is located at unit no C 223, Concourse Floor,
1Borneo. Their business hours is from 10 am until 10 pm but usually before 10 pm,
their donuts already sold out and start to do the closing such as cleaning their racks
of donuts.

Big Apple provides a lot of donuts. The donuts are baked fresh every hours to
ensure customers have a fresh supply of crunchy and tasty donuts. These donuts also
come with a variety of different mouth water toppings and have different unique
name such as California Almond and Kiwi Blitz. There are so many different type of

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donuts on sell, that customers need to come here for many time to try out all the kind
and types of donuts since they sell different variety of donuts.

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4.2 Organizational Structure

Managing
Director

Doreen Chen

Regional
Manager

Marcia
013-8605118

RB East
RB Bayu Sdn RB Pacific Sdn RB Pacific Sdn
Malaysia Sdn
Bhd 088- Bhd 088- Bhd 088- Driver
Bhd
432354 432354 432354
088-432354

Admin & Admin & Admin & Admin & Freddy

Accountant Accountant Accountant Accountant 014-8596921

Eulynna Tini Izz Izz

012-8184735 013-8717157 019-83224206 019-83224206

Suria Sabah One Borneo Imago

088-487611 / 088-485958 / 088-274838 / Warehouse
018-9888689 019-2418977 018-9888690 088-430277
(Whatsapp No) (Whatsapp No) (Whatsapp No)

Assistant Assistant Assistant

Supervisor
Manager Manager Manager

Paul Josnin Kiddy Chester

011-15370395 014-3567904 014-3733937 012-8823023

Barista Team Barista Team

Supervisor Storekeeper
Leader Leader

Sam Melvin Ayang Marlyne

010-9561581 016-8476792 011-25289451 019-8085400

Topping Team Topping Team Barista Team

Leader Leader Leader

Mary Anne Alex Emma Rose

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014-6574591 016-5865912 014-3546530

Topping Team
Leader

Mayang
014-9502752

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4.3 Product / service

Big Apple serves customer by not only selling donuts, but they also serves
drinks and coffee. They bake the donuts using oven but for the topping, they done it
manually. They sell variety of donuts with different topping and the taste are not
same for each donut’s flavour. The taste of Big Apple’s donut are different with
other store that sell donuts. The donuts itself without the topping are already
different with the normal donuts.

As for packaging, only Big Apple that provide boxes when customer buy their
donut. The other store will only use paper bag or even plastic to give to their
customers. This is one of the speciality that BIg Apple have to attract their customers
because they want to maintain the shape and freshness of the topping and donuts
itself.

4.4 Business / marketing / operational strategy

4.4.1 Business strategy

Big Apple is a franchise store that serves variety of donuts. They target
market is children since children very like junk food such as donut.
Besides, they target student as their customer because most of the
student also like to eat donuts. BIg Apple provides different toppings of
donuts and they will introduced a new flavour so the customers
especially the loyal customer can try new toppings for donut.

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4.4.2 Marketing strategy

Since Big Apple is a franchise store, the marketing strategy that will be
used is promotion strategy. The promotion will be done by the
headquarters at Kuala Lumpur. They do the promotion of their store
using different channel. The advertisement or offers of Big Apple can be
seen at Facebook, TV channel and advertisement at the cinema. This
strategy can help to attract people to buy their donuts since the
advertisement and the offers was shown using the way that people will
see everyday especially TV channel.

4.4.3 Operational strategy

The process of making the donuts are done through different process
such as preparing the dough, baking and the toppings. They used a big
ovens to bake their donuts and for the toppings, they will do it manually
which is they only use their hand instead of using machine or other
equipment. For business and operations hours, their business hours is
from 10am to 10pm. For operations hours, it start from 7am until
10pm.

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4.5 Financial achievement

Big Apple 1Borneo’s income is not fixed every month because it depends on
customers demand. After deducting rental fee, salaries and wages of the workers,
electricity and water bills, the estimated profit for every month is RM150000. In
order to achieve their target sales, they will do promotion and offer for every month
and always introduced new flavour of donut to attract more customer.

The amount of salary that they will pay the workers are RM1100 and above
every month. For part timer, the wages are RM5.20 per hour and they need to work
for 6 hours a day.

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5.0 IDENTIFICATION OF MAIN ISSUES PROBLEMS

Every business has its own problems whether it is small issues or big issues.
These problems will affect not only their profit, but also the business’s productivity
and effectiveness. Big Apple is not excluded facing problem in their business
activities. The main issue that Big Apple faced was defected machinery. Since they
used same machine to make the dough and bake it, the machine will need to do a
monthly maintenance and services to make the machine still usable and functioning.
But even though they don the maintenance, the machine still will defect and cannot
be used again so they will need to buy new machine.

Second issue is the space of the store itself. The space for making the toppings
and designing are combined with the space for selling. Hence, it can limit the
movement of the workers in preparing the donuts and sell it.

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6.0 SWOT

EXPLANATION
STRENGTHNESS a. Experienced staff. A few of the staff there already
worked with Big Apple more than 4 years, This can help
the premise to run effectively since some of the worker
are experienced enough about the condition and what
customers need.

b. Donut’s flavour that always came up with a new one

make customers always buy the donut to taste the new
flavour. So, it can increase the number of sales every
month with the addition of a new flavour.
WEAKNESS a. Some of a new appointed staff cannot stay longer with
Big Apple and maybe it is because work at Big Apple’s
store need to stand up in a longer period of time. Since
our space to prepared the donuts is small, it limit the
movement at the store and they did not have enough
space to sit for a rest.
OPPORTUNITIES a. Big Apple is a brand that already famous in Malaysia
and we have many store at different places. We took this
opportunity to always increase our productivity to be
able become a number one choice for everyone.
THREAT a. Finding a staff with good quality. Since, Big Apple is a
franchise store, so we will need a quality worker to
maintain our store achievement to make sure the Big
Apple brand always become people choice in finding
donuts and coffee especially the donuts. We need a
worker that meet our requirement to make sure they will
give a good commitment in preparing donuts and coffee.

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7.0 BUSINESS MODAL CANVAS

Key Partners Key Activities Value Customer Customer

Proposition Relationship Segments

-Provide a -Website -Student

-Yeo’s drink -Nothing
good service
-Facebook -Government
-Digi Telco
-Consistence employees
-TV channel
quality of
Key Channels -Children
donuts
Resources
-Store’s
-Donuts application

Cost Structure Revenue Streams

-Private and confidential -Nothing

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8.0 SUGGESTION ON APPROPRIATE SOLUTIONS

Every problems will have it owns solution. As for Big Apple, they have two
issues that can disturb their business progress which is defected machinery and
insufficient space at the store.

For the first issue which is defected machinery. Big Apple can do such a
methods. First is stock up on spare parts. Having a spare part of the machine at your
store can help shorten the time your store equipment is idle. By doing this. You
would not have to wait for the part to arrive and just call a repair service and they
will fix the machine right away. Second is follow a regular cleaning schedule. The
most important equipment machinery tip is to clean your machines regularly. Some
of the cause for defected machinery is people usually only know how to use the
machine but they did not realize that sometimes machines need a cleaning after the
machine being used. If the machines are not being cleaned, not only is it unsanitary
to leave particles of flour, pieces of dough and baking oils in the machine, it can also
cause a bulldop that impairs proper function.

For the second issue which is insufficient space at the store. This is important so
that the movement of the workers in preparing the donuts and coffee are smooth. For
the solution, Big Apple can rent for a bigger lot at the 1Borneo Hypermall since their
business are run successfully. With this action, not only their workers will work
more comfortable but they can also add up more table for their customers to eat
there. This will help their customers to have a peace of mind and feel more
comfortable since the space are more bigger than usual.

But for these two solutions, there is one thing that Big Apple will need to take
note which is by doing this two solutions, they will have to increase their cost for
maintenance since they need to do an improvement for their store.

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9.0 CONCLUSION

In conclusion, in order to compete with their main competitor Dunkin Donuts the
Big Apple Donuts & Coffee should make an organization design to ensure that that
employees are confident of their individual responsibilities. Due to the lack of staff
with good quality, in our opinion Big Apple Donuts & Coffee should train more
employees to increase the productivity in order to achieve their goal which is to
become number one choice for everyone.

Other than that, to minimize machinery breakdowns they have to make

machine equipment maintenance and stock up on spare parts as a priority otherwise
they will always be interrupted in their work flow and a loss in sales. Nevertheless,
they should make their weakness as their motivation to retain the employees by
creating a favourable work environment for everyone. With the proper store design,
simple organizational structure and recruitment and training techniques the Big
Apple Donuts & Coffee sure will continue to grow and be more profitable in years
to come.

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10.0 REFERENCE

1) Marcia Olive Bainon

Regional Manager

Big Apple Donuts & Coffee

1Borneo Hypermall

2) https://www.strattonsales.com/5-great-bakery-equipment-maintenance-tips/

3) https://en.m.wikipedia.org/wiki/Big_Apple_Donuts_and_Coffee

4) https://www.bigappledonuts.com/about_our_story.html

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11.0 APPENDICES

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