TABLE OF CONTENT

No. Content Page

1 Introduction Of Product Business 2

2 Competitive advantage of the product 3-5

3 Financial sources to create the business 5

4 External and Internal Factor 6-9

5 SWOT Analysis 10-12

6 Ethical issues in the business 13-15

7 References 16-17

8 Task segregation 18

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DESCRIBE THE PRODUCT OR THE SERVICE OF YOUR BUSINESS

After brainstorming session with our group members, we come out with new
renovation and called it Choco Puff. Basically, this product is a renovation from our
traditional ‘kuih’ which is curry puff. This product also has a combination with dip n dip
style. We use marshmallow as it fill instead of curry. The outside skin, we use popia skin
so that it will be crunchier when we cooked it. Then this product is served with melted
chocolate same with dip n dip concept.

Next, for our marketing style we provide two type of products. The products are
frozen and cooked product. The cooked product will be selling at the current store and it
is placed inside the hot shelf. For customer who prefer to cook by themselves, they can
buy the frozen item. Moreover, this is because this product is very easy to serve.

To cook this product, we need to make sure the pan is ready with hot oil. Then put
the product inside pan and wait until the skin turn to golden colour. This product cannot
be cook inside the pan for too long as the marshmallow inside may burnt. After that, this
product can be served with melted chocolate or can be eaten raw without any toppings.

The logo above is our business trademark. It symbolise our delicious and
extraordinary product.

2
COMPETITIVE ADVANTAGE OF CHOCO PUFF

Definition

Competitive advantages are conditions that allow a company or country to produce a

good or service of equal value at a lower price or in a more desirable fashion. These
conditions allow the productive entity to generate more sales or superior margins
compared to its market rivals. Competitive advantages are attributed to a variety of
factors including cost structure, branding, the quality of product offerings, the distribution
network, intellectual property, and customer service.

Method

Competitive advantages generate greater value for a firm and its shareholders because of
certain strengths or conditions. The more sustainable the competitive advantage, the more
difficult it is for competitors to neutralize the advantage. The two main types strategy of
competitive advantages are low cost strategy and differentiation strategy.

Low cost Strategy Differentiation Strategy

• A strategy an organization
uses to build competitive
advantage by being efficient
and offering a standard, no-
frills product
• A strategy an organization
uses to build competitive
advantage by being unique
in its industry along one or
more dimensions

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Our product

The product invented by the team is never been heard in the market. The uniqueness of
the product itself can go viral and penetrate the market itself. Thus, the strategy that is
used for the team is a differentiation strategy where the main advantage of the product is
unique with the textures, flavor and never existed in the market. The product met the
customers’ needs with what the product offer. The uniqueness of product and taste,
affordable price, high chance to go viral through social media, and the ability to easier to
find anywhere else.

The product is differed from the competitors’ offerings and is seen as superior. To
compare with one of the famous outlets “Dip n Dip” which is from the greatest
competitor for our product, the outlet is not serving the dessert that wrapped
marshmallow with spring roll then drizzle with chocolate. The spring roll that was used as
the outer part of the food made it more crunchy after being fry that would give much
satisfaction to the consumers.

Moreover, the price offered by the choco puff is far cheaper than the price of any product
of the “Dip n Dip” outlet. This is because the ingredients that are used for the products are
not costly and can get cheaper if buy by bulk. Thus, the cheaper price than offered by our
product will make the product more superior than the competitors’ products.

Furthermore, by the partnership with 7eleven, the product can be obtained in any
region throughout Malaysia, since 7eleven outlets can be found at any place. 7-Eleven
Malaysia is the largest standalone convenience store chain nationwide with more than
2,250 outlets across the country. Besides, Berjaya Corp founder and executive chairman
Tan Sri Vincent Tan Chee Yioun said 7-Eleven Malaysia is also looking at increasing the
number of franchisees for stores in Malaysia, along with the expansion in the number of
outlets, with target at least 200 new stores on the year 2019. The advertising and
marketing would be the ease with the large numbers of 7eleven outlets. Hence, our
product would be easier to be found to compare with competitors’ product that has
limited outlets.

The product has more advantages in competitive aspects since it met the criteria
that would satisfy the consumers with what the product offers. The product also provides
better value as its competitors but at a lower price.

4
FINANCIAL RESOURCES

For financial resources, we have decided to use our own savings to start making
the sample to present to our big franchise which is 7eleven. Other than that, we plan to
apply government grant and subsidies to support our financial capital to widen our
product market. We also can use this money to improvise our current product in order to
increase the sale. Our last option is using a bank loan as to get the government grant
requires several tough criteria. Bank loans are commonly used as source of funding for
small and medium-sized business. This is because bank always looking for companies
with a sound track record and that have excellent credit. A good idea is not enough; it has
to be back up with a solid business plan. Start-up loans will also typically require personal
guarantee from entrepreneurs.

5
FIVE EXTERNAL FACTOR
1. Competitor
There are lots of companies in the industry sell same product unless the product
was newly invented and didn’t have any competitors. That means the company need to
be aware of the competition and what they’re doing in the marketplace, and use that
information to distinguish in as many ways as possible. Even though what the
competitor do cannot be control, but their weakness in marketing can be useful to give
advantages to company.

2. Customers
Customers are flaky and unpredictable, and they move on to the next big thing just
when someone think they have their loyalty. The customer’s behavior cannot be
control but it can be study and learn how to adapt to modification that might affect the
sales. We take on example, if customers indicates that they want something that
anyone else does not offer,you might want to listen and begin offering what they are
asking before your rivals do it first. Customers’ needs are our priority.

3. Economy
Business owners are unable to regulate the economy, but they must react to
upward or downward trend indices and then adjust their own activities accordingly.
For instance, if economists predict a recession, tightening budgets, eliminating some
projects, and remaining in a holding pattern until things get better. However if the
economy grows and interest rates are small, it will be simpler to acquire loans to assist
the business to grow.

4. Politics and Government Policy

Changes in government policy can give a huge effect on the business. For
example, since the 1950s, cigarette companies have been required to place warning
labels on their products, and they lost the right to advertise on television. Smokers
have fewer and fewer places they can smoke legally [11]. The percentage of smoking
Americans has fallen by more than half, with a corresponding impact on profits from
the sector [12].

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5. Supplier
Supplier is one of the most important people to deal with because they have a
huge impact on the costs. The influence of any given supplier depends on scarcity: If
the resource cannot buy anywhere else, the negotiating room is limited.

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FIVE INTERNAL FACTOR

1. Leadership
Leadership relates to your organization's individuals who make all the main
funding, budget, sales, marketing, and human resources choices. Strong leadership
companies have a clear vision for the future, a plan for achieving their goals, and a
quantifiable way to measure success. They have also developed the kind of management
structure that enables employees to feel empowered, while also meeting production and
sales goals. Weak management is like a vessel that has no direction and is in risk of
sinking without a rudder. Leaders that lack a strong vision and that are unable to
properly manage their teams will find it difficult to achieve their goals.

2. Employees
Strong enterprises feature motivated workers who understand the expectations of
management and are provided with the tools, training, support and encouragement not
only to meet those expectations but to exceed them. Hiring skilled staff is not enough
for leaders, because each excellent companies does the same thing. Managers must
guarantee that they are in continuous communication with staff and that any issues or
dissatisfactions within the rank and file are addressed in a timely way in order for a
business to continuously generate high outcomes. When staff feel appreciated and
rewarded, they will go above and beyond in maintaining a high standard of
organization.

3. Mission Statement
Defining the ‘why’ of a company rather than the ‘what’ of a company is the key to
providing your employees with the motivation and buy-in that affects how hard they
work, and how much they believe in what they do. For example, a fast food company
developed a mission statement that it was always about pleasing the customer, no
matter what it took. That mission enabled the management to give employees the
discretion to give discounts and freebies to customers without supervisor approval. As
a result, the company soon will became known as one of the best fast food companies
in the world.

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4. Communication
Successful organizations thrive on robust communication practices, where teams
and team leaders freely and frequently communicate to improve outcomes. This two-
way communication stretches from top to bottom up and down the hierarchical
structure. Organizations that have communication deficiency often have rigid
management structures that destroy confidence.

5. Learning
Learning is one of the most basic human activities and accounts for the
achievement of any organization directly or indirectly. As technological developments
lead faster rate of change, successful organizations need to discover a way to react that
fosters innovation and creates the chance for learning and exploration into the
experience of each employee.

9
SWOT ANALYSIS

SWOT analysis is crucial when doing business as this analysis will help the
company to come up with proper strategies to run the business successfully. Plus, SWOT
analysis is a powerful method because it helps the organization to uncover opportunities
that are well-placed to exploit. Besides, by having a better understanding of the
organization’s weaknesses, the organization can manage and eliminate potential threats
that would otherwise catch you unawares. After the analysis is completed, the
organization can then craft strategies to operate better than other competitors. Thus,
enable the organization to compete successfully in the market. These are the concrete
reasons for us to determine our strength, weakness, opportunity and threats in our new
product and company.

Before we move on to the first analysis, strength and weakness are often internal
to the company. The first strength for our product is that it has unique taste. This is
because we combine the spring roll savoury taste with the sweetness of marshmallow and
finger-licking chocolate. Plus, there will be crunchiness in every bites as we are using the
spring roll. Hence, with this unique combination will satisfy the consumers’ taste. Next,
our product consists of three main ingredients only. Plus, all of these ingredients can be
easily find locally and offer a much lower price when we buy in bulk. Hence, save cost in
product production even though we are using the best ingredients in town. The third
strength is our product it is convenient. As we are making the product as frozen food
item, it only require small effort and shorter time for preparation. Hence, it is not time
consuming and can be shortly cooked whenever time is crunched.

Next, we moving on to the weakness of our product. Firstly, as we are selling

frozen food so without proper handling, the product can be easily damaged. This product
need to be keep in suitable temperature otherwise it will turn bad. Secondly, we are
producing a new product that has not been sold before. Thus, we are lack of consumers’
feedbacks to make our product trustworthy and worth buying. Moreover, whenever
consumer went for grocery shopping, they tend to buy the items that they usually bought
and this habit is hard to overcome. Thirdly, by selling new product, it will be hard to find
potential customers. Not to mention, loyal customers. Without a proper marketing
strategy, consumers will never know about this new product.

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 In contrast for strength and weakness, opportunity and threats are external to the
company. The first opportunity is that we can sell this product without any competitors in
the market. This is because we are the first company ever to come up with this idea.
Besides, as we study the trend in Malaysia: whoever selling a weird or unique stuffs, the
stuffs tend to go viral and people will look for it. We are taking this golden chance by
selling a unique and new product in the market. Whenever our product go viral, we will
obtain free marketing from others and number of potential buyers will increase.
Furthermore, we are selling the product in a convenient store which operated 24 hours
daily. As we know, 7-Eleven are widely located in Malaysia. Thus increasing the
potential buyers as they can easily access to any 7-Eleven store nearby anytime.
Moreover, we will also be selling the cooked product in the store. This will helps
consumers to save their time and advertise our product better.

Next, we will discuss on the possible threats that we need to face. Firstly, we need
to compete with other products that will also go viral. As many competitors might also
have known about this trend, it will not be possible for them to come up with a unique
product as well. Secondly, we need to compete with other chocolate-related product. For
an example, chocolate bread that also have been sold widely. Even though our product
come up with different combination, but there is still competitions in other section.
Thirdly, the pressure for online preferences. People will seek for items that offer fast
delivery service as they will not need to go through the traffic jammed just to buy
groceries. They prefer to pay for the delivery charge then to go and buy at the store.

After we analyse the strength, weakness, opportunity and threats in our products
and company, finally we managed to build a comprehensive strategies. First, we need
people to recognise our products. In order to do so, we will give a small piece of sample
to whoever that shop at the 7-Eleven store. Who does not like free items right? By giving
free samples, we will obtain free mouth-to-mouth advertising from the customers. They
will promote our products to their families and friends. This will be golden opportunity in
reaching many more people to recognise this products. Plus, we will also advertise this
product in 7-Eleven social media platform such as Instagram and Facebook. By doing
this, we will manage to attract people to come visit the store in order to try this new
product. As 7-Eleven are usually located nearby the residential areas, people will have
easier access to visit any store nearby.

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 Second, we will make collaboration with other food delivery service companies.
For example, Grab Food and Food Panda. By doing this, we can widen the potential
buyers from all over the country. People who do not like to go through the trouble going
to the store or people who are lack in time, can just order it online. For example, we are
very busy doing work in the office and need something to eat, we can just order it online
and the food will be delivered to our front door. It is like killing two birds with one stone
as we managed to finished our job and fulfil the hunger at the same time. Besides, as for
people who does not have any license and transportation, food delivery is really
convenient for them. As a whole, we can say that by doing this collaboration, we can run
this product and company successfully.

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ETHICAL ISSUE

Ethics are defined as the system of rules that governs the ordering of values or in other
words, ethics are moral principles that govern a person's behaviour or the conducting of
an activity, for instance, the discipline dealing with what is good and bad and with moral
duty and obligation. Ethics can be divided into two categories which are ethical issue and
business ethics. Ethical issue is a problem, situation or opportunity that requires a person
to choose between alternatives or among several actions that must be evaluated as
morally right (ethical) or wrong (unethical).

The first ethical issue that we will take into consideration in our business is by
considering or taking into account of only honest feedback or review at work such as
honest, productive as well as constructive feedback of employees to the managers/leaders
or the feedbacks that we got from our consumers itself. The honest feedback or review is
very important as it can be a motivation for the managers or leaders to improve
themselves and increases the understanding and communication between employees and
managers/leaders and also to succeed. Furthermore, honest feedback from our beloved
consumers also can enhance our performance in this business industry as we can further
evaluate and understand the demands along with making improvements with our products
as well as mend our business [1]. To implement the honest feedback/reviews at work,
there are several ways to do so. One of it is by seeking out or investigates it ourselves as it
will really boost or help building trust between the manager and employees as well as
with the consumers, which is very important and essential to sticking to honest feedbacks.
Moreover, we also can be supportive or providing encouragement with the feedback
rather than being so blunt in it that can lead to harsh criticism and misinterpret or
misunderstanding that can generate bad or unfavourable working environment [2].

Besides, we also contemplate on making sure and maintaining a clean work

environment when processing the products. As we run a food business as our main
product is choco puff, we really need to be aware of the cleanliness and good hygiene as
well as always keep in check of it. The main purpose of keeping the work place especially
the food production place cleanliness in check is in terms of health issue which is to
comply with health and safety legislature as it is a very crucial part so that we would not
being sued or complained. As the first impression count, clean and tidy workplace also

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can give a good impression to the client. It can generate or create trust and confidence to
the clients from the very beginning, as on contrary, it can give a bad impression and
reputation as well as we can be look as we lack of professionalism and commitment [3].
There are some methods or actions that can be taken to make sure the work environment
when processing the products is kept hygienic and clean. One of the ways to keep it clean
is making sure our employees have access to the right equipment by providing our
employees with the suitable equipment and make sure the equipment are available all the
time [4].

Next ethical issue that we will take into consideration in our business is we will
put on so much effort to avoid using harmful or unhealthy ingredients in other words food
additives in our process on making and producing our product which is choco puff such
as MSG for flavour enhancement [5]. Food additives are chemical that being added to the
food or beverages for the purpose of enhancing the colour, flavour and texture along with
to keep them fresh longer [6]. This is due to the bad and negative impact that will be
given to the consumer if they consume it in a long term especially in term of health issue
as the additives will increase the risk of getting diseases [7]. We want to produce food as
our product that contains nutrients essential for health, however, it is not harmful to the
consumers, therefore, we don’t want to add the harmful or unhealthy ingredients to our
products.

In addition to the ethical issues that already being stated above, we also want to
consider, encourage and promote highly level of integrity in our organization. Integrity is
defined or described as the quality of being honest and having strong moral principles, as
in terms of our business, it can build trust, creativity and open communication that can be
useful and very beneficial as we work in business team that help keeps our company
reputation stable. Integrity also has other definition which is being whole and undivided.
As in terms of our business, this concept or idea is the key for an enterprise like us to
success, for instance, the lack of unity or connection among us as a team members even
the people inside the company itself can sabotage the efficiency, productivity and
progress. In order to boost and encourage integrity at the workplace, there are many ways
and approach that can be developed. One of it is to work for two-way communication.
When we give the opportunity to our employees to talk or voice out their opinions and
concerns with each other and upper level of management, we would encourage and
endorse the high level of transparency and reinforce the idea that everyone is working

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toward the same objectives [8]. The two-way communication also can create a democratic
environment and solve problems better [9].

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REFERENCE

[1] GovLoop. (2019). 4 Reasons Why Giving and Receiving Performance Feedback is
Important | GovLoop. [online] Available at:
https://www.govloop.com/community/blog/4-reasons-giving-receiving-
performance-feedback-important/ [Accessed 29 Aug. 2019].
[2] Targetprocess - Visual management software. (2019). 4 Ridiculously Easy Ways
to Inspire Honest Feedback at Work. [online] Available at:
https://www.targetprocess.com/blog/honest-feedback/ [Accessed 29 Aug. 2019].
[3] Do Better Hiring - The RecruitLoop Blog. (2019). 5 Reasons Why a Clean
Workplace is Good for Business. [online] Available at:
https://recruitloop.com/blog/5-reasons-clean-workplace-good-business/ [Accessed
29 Aug. 2019].
[4] Brushtec. (2019). How to Maintain a Clean and Organised Factory or Warehouse
(and Why You Should) | Brushtec. [online] Available at:
https://www.brushtec.com/maintain-clean-organised-factory-warehouse/
[Accessed 29 Aug. 2019].
[5] Thebetterhealthstore.com. (2019). Top Ten Toxic Food Ingredients in Processed
Food. [online] Available at: https://www.thebetterhealthstore.com/043011_top-
ten-toxic-ingredients-in-processed-food_01.html [Accessed 29 Aug. 2019].
[6] Cbhs.com.au. (2019). Food additives | Food additive list and their health impact.
[online] Available at: https://www.cbhs.com.au/health-well-being-blog/blog-
article/2015/03/12/food-additives-harmful-or-harmless [Accessed 29 Aug. 2019].
[7] LIVESTRONG.COM. (2019). Bad Effects of Chemicals in Our Food |
Livestrong.com. [online] Available at: https://www.livestrong.com/article/497730-
bad-effects-of-chemicals-in-our-food/ [Accessed 29 Aug. 2019].
[8] Business 2 Community. (2019). 9 Ways to Strengthen Integrity in Your Business.
[online] Available at: https://www.business2community.com/leadership/9-ways-
strengthen-integrity-business-0881034 [Accessed 29 Aug. 2019].
[9] mHub. (2019). The importance of two-way communication - mHub. [online]
Available at: http://www.mhub.tv/importance-two-way-communication/
[Accessed 29 Aug. 2019].
[10] S. Quain, “Internal & External Factors That Affect an Organization,”
Your Business, 04-May-2018. [Online]. Available:

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 https://yourbusiness.azcentral.com/internal-external-factors-affect-organization-
11641.html.

[11] F. Sherman, “What Are Internal & External Environmental Factors That
Affect Business,” Small Business - Chron.com, 08-Mar-2019. [Online].
Available: https://smallbusiness.chron.com/internal-external-environmental-
factors-affect-business-69474.html.

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