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Case Study Assignment (Company Analysis)
Case Study Assignment (Company Analysis)
SWEET BY KAY™
Bismillahirrahmannirrahim.
In the name of Allah, the Most Gracious and the Most Merciful,
Alhamdulillah, thanks to Allah SWT for His willing giving us the strength
and opportunity to complete this assignment. Special appreciation goes to our
Principles of Entrepreneurship lecturer, MADAM WAN HASMAT BT WAN
HASAN, for her supervision and constant support. We are very thankful to madam
for her willing to guide us on completing this assignment. She helped us a lot by
giving comments, suggestion and knowledge on this assignment. Thank you for
madam for her willing to teach and give a lot of knowledge to us for this semester.
Next, our deepest gratitude goes to our beloved parents for their endless love,
prayers and encouragement. Last but not least, sincere thanks to all our friend and
BA2402A members for their kindness and moral support. Our thanks go to the people
who are directly and indirectly involved by developing this assignment.
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EXECUTIVE SUMMARY
We are going to make a simple summary of our case study for company
analysis assignment. To succeed in this assignment, we have managed to interview a
small business owner that is Nurin Kamaliah Binti Rosmi,where she had planned to
sell a cookie she made herself. Her business started operating this year in March at
that time, Malaysia was being hit by covid-19 until today.
Next, the location of her business is located in Malacca. The location she
chooses is very suitable for her to run this business for a long time period because that
is a strategic location. Although many competitors have long advanced for her to face,
but she will make sure that her business will thrive like them. By providing the good
product quality to produce it, she believe her product will be liked by many people
because of the deliciousness of these cookies. Lastly, her business also provides
online shop and services.
After that, BMC which stands for the Business Model Canvas is also used to
examine the strategic management of its business. The nine elements in the BMC
included key partnership, key activities, key resources, value propositions, customer
relationships, channels, customer segments, cost structure and revenue streams. These
elements help a business to focus in improving their business by clearing a path towards
improvement. This means that the BMC element breaks down the business model into
more specific segments.
In this assignment as well, we are asked to find the problems faced by the
owner related to her business. Not only that, we also need to provide suggestions or
recommendation to overcome the problems that are being faced by the business
owner.
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3.0 COMPANY INFORMATION
3.1 BACKGROUND
The name of this product is SWEET BY KAY™. The owner of this business is
Nurin Kamaliah Binti Rosmi. This business has been newly established since March
2021. Since it is still new, the business does not have a store. It is a business that is only
sold online. This business is located at NO.56, Jalan Pegaga 5, Taman Merdeka, Batu
Berendam, 75350 Malacca. She was run this business by herself without any help from
others. After that, when we asked about why is she running this business, she said that
she just wants to fill her free time while waiting for the opportunity to continue
studying.
Then, she added, although her business was new in the early stages,but her
business survived until now due to the response from the public so that some of them
want to be one of the her Dropship. Next, the reason why she chooses the name of
SWEET BY KAY™ is because she sells the sweet foods or better known as the dessert,so
she thinks that this name is suitable for her shop.
Not only that, she said that she learned the art of making this cookies by
watching the video available on YouTube. If customers want to make the order,
customers can contact or message at this number +60164784905. If they have any
questions, customers also can email it at sweetbykay@gmail.com. It also has websites
for anyone who wants to know more details about this business. The website is of her
business is sweetbykay.com.my . The good service will be provided to customers.
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3.2 ORGANIZATIONAL STRUCTURE
MUHAMMAD IMAN
ZAWANAH BINTI DIANA HAFEEZA BT
BIN HAMIDON ABDUL RAHMAN
MOHD (DROPSHIP)
(DROPSHIP)
(DROPSHIP)
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3.3 PRODUCT AND SERVICES
For the product and services, she only has two types of cookies. The name of
these two cookies is Brownies cookies which are RM18 per bottle and Choco Mellow
which is RM 13 per boxes.
In addition, she also has other services such as providing cod services for
anyone who is sitting near Malacca. These are a few pictures of her delivering her
own cookies to customers who bought with her.
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3.4 BUSINESS, MARKETING AND OPERATION STRATEGY
3.4.1 BUSINESS STRATEGY
A business strategy is known as a clear set of plans, actions and goals that
outlines how a business will compete in a particular market. What is interesting about
her cookies is that she makes it herself. People say "hand water itself is tastier than
others". At the same time, the price she offers is more affordable so everyone can buy
her product. Moreover, she will make sure the quality of her product is the better than
others as she uses the highest quality of material like lotus biscuits as its topping.
Key Partners Key Activities Customer Relationship Customer Segments Value Propositions
a) Food suppliers.
a) The price of the
a) Food preparation. a) Conversational. a) Families.
AMIPLUS SDN product offered is
b) Great food quality. b) Up-close and personal. b) Communities especially
BHD
BAKE WITH YEN c)Fast and efficient c) Personalized assistance. to the less fortunate. cheaper compared to
service. d)Accept customer feedback. c) Young people include other brand products.
d)Marketing and kids. b) The quality of
advertising. product.
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4.2 DETAILS OF BUSINESS MODEL CANVAS (BMC)
Key partners are very important for the entrepreneur to define which companies
or shop that suitable to become the suppliers in order to supply new material for the
business. The food suppliers are the first key partner for her business such as
AMIPLUS SDN BHD since she thinks that it is the best shop to find the raw materials
for baking brownie cookies. In addition, the price in this shop are reasonable and
suitable for those who wants to start or running a pastry business. She very enjoyed
shopping here because all items that she wants are there.
Not only that, she also chooses BAKE WITH YEN to buy the Choco Mellow
items because the price and the quality of the product is good. Moreover, she loved
how the shop organizes their goods, for example, their workers pack mini coco crunch
into small packaging such as 250 gram, 500 gram and 1 kilogram at the reasonable
price. It is easy for her to estimate and calculate the capital of raw materials..
Key activities can be defined as the most important activities in executing your
company’s value proposition. Much like key resources, these activities are required to
maintain customer relationships, reach new markets, create value propositions and
earn revenues. The first key activities of her business are food preparation.
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For the first thing first in food preparation, she will purchase all the raw
materials from her food suppliers to produce the cookies. After that, she started
baking the biscuits and then she would place it in the special container she had set at
the beginning and she will store them in a container or fridge. Next, she will open a
reservation for everyone who wants to order her cookies.
The second activity of her business is to ensure the production of great product
quality. In the business of SWEET BY KAY™, she provide the quality of product by
serving the best texture, taste, colour and when the product will be expired. It is to
make customers get a quality Brownie Cookies and Choco Mellow from her and
become a loyal customer of SWEET BY KAY™.
The third activity of her business is to ensure the fast and efficient service. She
will ensure that the customers will get the best services from her which is she will
complete her cookies order in 3 or 4 hours a day and continue to deliver it to her
customer as soon as possible so that the customers don’t wait too long. Not only that,
she will wrap her cookies carefully such as using bubble wrap so that the container
does not break or be damaged once it arrives in the hands of the customer.
The last key activities of her business are making advertising and marketing.
For this key activity, she will advertise and market her cookies in any social media
and also making various of promotion to attract the customers.
Value propositions can be defined as a benefits, costs, and value that your
organization can deliver to your customer. A value propositions creates a unique
value for customers through a mix of elements that could be qualitative or quantitative.
This could include price, speed, design, or customer experience. The advantage
offered by SWEET BY KAY™ is free delivery to anyone sitting in the Malacca area
who has purchased three bottles and above. Not only that, but there is also a buy 2 get
1 free promotion only on special days such as Hari Raya, 10.10 sales and so on.
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The price of the product offered is cheaper compared to other brand products.
Most of Cik Nurin’s customers or anyone, of course they will buy something with
reasonable price. In order to fulfil the wills,SWEET BY KAY™ business sells their
products with a good packaging and the quantity of the goods are suitable with the
price.
Product quality is also taken care of for each manufacturing process. The
packaging process is carried out carefully and neatly so that no damage occurs when
the goods reach the hands of the customer. Customer feedback plays a very important
role in improving process quality as well as quantity.
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Then, all the customer’s feedback will post in social media to attract more people to
try her products.These kind of feedback can make her business become successful in
future.
Finally, the conversation is the last ways to build the relationship with the
customers. Each medium of the channel provides new opportunities to converse
directly with the customers about a customer service. For example, she will respond
to comments and direct messages on social media. Not only that, website also a great
place to acquire customer emails and be able to inform upcoming activities such as
holding promotions.
Cost structure can be defined as the costs and expenses that your company will
incur while operating your business model. When your business defines how to create
value, maintain customer relationships, and generate income, it will see costs incurred
on each of these levels.
Firstly, the variable costs means the costs that vary proportionally with the
volume of goods or services produced. The example of the variable cost of her
business is the direct material. Raw materials are the basic things that we use when we
want to make some business. Without it, we cannot run our business. In this situation,
Cik Nurin had calculated her budget to run her business. The cost of raw materials at
the beginning of her business quite big because she had to buy some equipment for
baking Brownies Cookies. For example, she bought an oven and the mixer to bake her
Brownies Cookies. The cost of Choco Mellow that she use are cheaper than Brownies
Cookies because it does not use so much ingredients to make it.
Lastly, fixed cost in SWEET BY KAY™ business are vehicle, electrical bill and
water bill. For vehicle, she uses car to buy raw materials and make delivery to
customer. It also includes the cost of petrol that use of her car. In addition, electrical
and water bills also added in cost of her business. The uses of the oven and other
materials use a lot of electric and water to wash all the equipment that she uses for
baking.
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4.2.6 CHANNELS
The channel can be defined as the pathway (physical and virtual) which is best
for the company or business to reach your customer. These channels can include
social media, websites, newspaper advertisements, search engines, and word of mouth.
Since SWEET BY KAY™ are operated through the online shop, so the channel that
used is social media and website.
Since she cannot explain directly about her product, she will make one video to
review the product while at the same time being able to promote the product. She also
will serve customer virtually through social media such as WhatsApp, Facebook and
Instagram. In addition, she also creates the website for her business, so it can easier
for customers to contact thru it.
Lastly, she also provided the delivery service or cod to the customer’s house
which will be sent by her with using her own car so indirectly it also can save the
cost.
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4.2.8 REVENUE STREAM
This building block measures the earnings a company generates from various
sources which is sales of the goods or the provision of services. There are four models
of revenue streams for instance service, project revenue, non-recurring and
transaction-based revenue. For the first model of revenue stream is the service
revenue. The income received from providing services falls under service revenue. So,
for instance, she earn revenue by providing delivery services for customer who stay in
Malacca. Also, sales marketing fees are services in nature.
Next, the second model of revenue stream is project revenue. It means that
revenue generated through one-time projects. For instance, she has a strategic
promotion for her product. However, if the customers choose to buy the cookies in
higher quantities, she will give the discounts for every purchase. Also, she will give
one free cookies for everyone if a customer who buy more than three bottles of
cookies.
Then, non-recurring revenue is the third of revenue stream. This revenue is the
source of income that cannot be predicted easily. For example, she sells the cookies
where there may not be many on a normal day, but there will be a lot of demand
during the special day. Last but not least, the transaction-based revenue is the
proceeds of selling goods that are usually from one-time customer payments. For
example, proceeds from the sale of each type of traditional cookies directly to the
customers.
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Firstly, her first target of the customer for her business is family. The reason
why she choose this group is considered to be the cheapest and easiest way to divide a
target market. This group is easy to target because they is a person we are most close.
When demographic data blended with other data sets, it will be easier ways to analyze
differences between among customers.
After that, the second target is a community. Of course she will focus on the
citizens of Malaysia because she want this business to grow in Malaysia. But, she will
focus more to the less fortunate group because she want everyone to be able to taste
her cookies that made by herself.
Lastly, the target customer is young people include kids. This is because these
cookies can be the snack for them to enjoy in the evening but in healthy version.
Another reason is they are more attracted to something sweet and they will invite their
family to buy as well.
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5.0 FINDINGS AND DISCUSSION
The purpose of the discussion is to interpret and describe the significance of our
findings in light of what was already known about the research problem being
investigated and to explain any new understanding or insight about the problem after
we’ve taken the findings into considerations. Based on our interview session and
analysis we have identified few major issues that Sweet by Kay are current struggling
with, which are customer loyalty and lack of marketing and initiative.
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5.1.2 Problem 2: Lack of Marketing & Initiative
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5.2 Recommendations
As we know, Sweet by Kay has problems with customer loyalty. They just
hope to continue to always get customers. We would like to recommend a marketing
program that would boost customers while also directly increasing Sweet by Kay
revenues. The strategy is based on the "Buy one, get one free" promotion concept,
popularly known as the "BOGO Approach." (2019, Hudson). In recent years, the Buy
One, Get One approach has become one of the most powerful advertising techniques.
This can be in the form of a “Buy one, get one free” or a “Buy one, get one half-price
discount”. However, form the approach takes, it will always do one thing: it will
ultimately boost sales for the firm; in this example, Sweet by Kay's sales.
In this company context, this concept can be used in term of their product
which is Brownies Cookies and Choco Mellow: for example, if a customer purchased
a Brownies Cookies for RM18, they can have the second jar for 20% off or “A jar for
a jar” promotion. In addition, Sweet by Kay can offer more value-for-money set
purchases. For example, buyers can get Brownies Cookies and Choco mellow at a
cheaper price than ordering ala carte. For example, the total price for buying product
both product per each is RM31 and if the set that offered both products can be sold
with RM28. We can also suggest based on this concept, purchase for the second time
can get a discount of 20% off. So, it makes the customer feel worthwhile with the next
purchase.
However, this promotion strategy can only be used for a limited length of time,
possibly a week or two, using this “BOGO” concept can also make the seller get less
profit than it should if it is run over a long period of time. The steps given are
conceptualized as “BOGO” and the purchase of this set can create the impression that
the buyer has the right to choose. This is because offering or putting the popular
product of Sweet by Kay at a discounted price for a limited time, it will ultimately
create a sense of urgency among the public, which will contribute in the company's
sales growth.
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5.4 Recommendation for problem 2
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6.0 Conclusion
In conclusion, the case study of Business Modal Canvas is to learn more about
the company or brand operation for a small-businesses. The nine blocks of BMC can
helps any businesses to plan, envision and reinvent the business model by providing
key elements that outline the essentials to help the business succeed. Small business
owners must be well-capitalized or willing to earn new revenue to augment financial
reserves as needed to avoid the problem. This is why many small businesses begin
with the founders working full-time jobs while building their business. The goal is to
learn how to work with different personalities, to figure out what motivates each
employee, and to modify management accordingly. They must efficiently maneuver
around their commercial activity, given their limited resources. Challenges and
problems like customer loyalty and lack of marketing and initiative could be
effectively be countered with been described above.
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7.0 REFERENCES
4) Chiara Lavalle. (2020, May 24). “The Importance of Customers Loyalty in Food
Industries.”
https://www.doxee.com/blog/marketing/importance-of-customer-loyalty-in-food-indu
stry
5) Kay Lim. (2018.March 8). “Rethinking Your Approach to Customer Loyalty and
How it Can Impact Your Business.”
https://solvvy.com/blog/rethinking-approach-customer-loyalty-can-impact-business/
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8.0 APPENDICES
10 Compulsory Questions
Questions Entrepreneur answer Reason (if any)
1. When does your business In March 2021 Starting business after graduate from diploma and waiting
start? for degree.
2. At what time you start Open Monday to Friday from 10 a.m. until 6 p.m. Closed on Saturday and Sunday to buy raw materials and
opening your stall/ opening rest.
hours?
3. Source of capital to start the I used my personal saving. The capital is not expensive.
business (loan, borrow, saving)
4. How do you maintain Selling cookies at the reasonable price, promotion To attract more customers to buy my products during sales
relationships with customers? in a special day and maintain the quality of cookies. with lower price.
5. How did you come up with Kay is my nickname and “Sweet” because I sell Named the shop with catchy name to make customer
the name of your business? sweets product so I combined it and name it as remember my shop and products
(Idea/inspiration/reasons) Sweet by Kay.
7. What is the uniqueness of I will bake the brownies cookies if I have an order To maintain the quality of brownies cookies taste.
your product/ services? and I sell it in lower price than the other seller.
9. How the business I start my business during Covid-19. Also,there are I do delivery and post service to customers.
performance before& after some problems in growing this business.
COVID-19? (Suffer loss/not)
10. What is your average RM 500 per month The profit is based on how many orders that I get per
profits (daily/ monthly) month.
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2) The conversation between us and the owner of Sweet by Kay through Whatsapp.
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