UNIVERSITY MALAYSIA PERLIS

FACULTY BUSINESS AND COMMUNICATION

SEMESTER 2, ACADEMIC SESSION 2023/2024

SMP33803 STRATEGIC MANAGEMENT

INDIVIDUAL ASSIGNMENT

COMPANY NAME: DAPOQ CIK INA

PREPARED FOR:

DR SURIANI BINTI SUKRI

PREPARED BY:

NAME MATRIC NO GROUP

GETHA A/P M. CHELLAIAH 211222357 21A
NO TABLE OF CONTENTS PAGES
1.0 INRTRODUCTION 1

2.0 COMPANY BACKGROUND 2

3.0 PESTEL ANALYSIS 3

3.1
POLITICAL

3.2 ECONOMIC 4

3.3 SOCIAL 4-5

3.4 TECHNOLOGICAL 6

3.5 ENVIRONMENTAL 6-7

3.6 LEGAL 7-8

4.0 ANALYSIS ANND RECOMMENDATIONS 8-10

5.0 CONCLUSION 10-11

6.0 REFERENCES

7.0 APPENDIX
1.0 INTRODUCTION

This case study aims to analyze how external factors impact Dapoq Cik Ina, a small

medium business in Kangar, Perlis. By utilizing a PASTEL analysis framework, the study

assesses political, economic, social, technological, environmental, and legal factors affecting

the company's operations and strategic decisions. Understanding these factors is vital for Dapoq

Cik Ina to navigate the business landscape effectively, capitalize on opportunities, mitigate

risks, and achieve sustainable growth in a competitive market.

Dapoq Cik Ina, a small-medium business in Kangar Perlis, holds a significant position

in the local food and beverages sector. Specializing in a diverse range of locally sourced

products, it addresses regional market demands while upholding affordability and quality

standards. By partnering with local vendors, the company not only contributes to the economy

but also demonstrates a commitment to community involvement. With a focus on affordability,

quality, and community engagement, Dapoq Cik Ina embodies the entrepreneurial spirit,

fostering economic growth and customer satisfaction in the area.

This analysis explores various factors influencing Dapoq Cik Ina's operations and

strategic decisions. Political dynamics, such as government policies and trade agreements,

shape the regulatory environment. Economic factors, like agricultural fluctuations and inflation

rates, impact financial stability. Social factors, including cultural preferences and demographic

shifts, influence consumer behavior. Technology drives efficiency and growth, while

environmental considerations affect supply chain operations. Legal factors, encompassing

labor laws and taxation policies, demand meticulous adherence. Understanding and managing

these factors are crucial for sustaining competitiveness and fostering growth for Dapoq Cik Ina.

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2.0 COMPANY BACKGROUND

Established in 2019, Panggas Enterprise is the headquarters for Dapoq Cik Ina, a small

medium enterprise in Kangar, Perlis operating in the food and beverages industry. Specializing

in locally sourced packed foods, the company prioritizes affordability and quality, offering a

diverse range of options such as nasi lemak, spaghetti, fried noodle, dumplings, cakes and more.

Targeting students, working professionals, and families, Dapoq Cik Ina’s mission to be the

preferred choice for top-quality packed foods in Perlis. Their vision is guided by a commitment

to freshness, quality, and integrity in every product sourced from trusted local vendors.

Miss Nor Haslina Binti Hashim journey with Dapoq Cik Ina began with her deep-rooted

passion for the food and beverages industry. Having worked as a crew member at Kopitiam

Classic Kangar, she was inspired by her experiences there and encouraged by a former

employer to pursue her entrepreneurial aspirations. After completing her studies, she enrolled

in business courses which is six-month course to gain the essential knowledge and skills. With

a well-defined plan, she requested a location to start her food and beverage business. Due to a

fast approval process, she obtained a location promptly, allowing her to start operations in

Kangar, Perlis.

Since its establishment, Dapoq Cik Ina has earned a reputable status within the food and

beverages sector of Kangar, Perlis. The company's dedication to excellence and innovation has

been recognized, particularly receiving the "Best Local Food Supplier" title from the Perlis

Chamber of Commerce in 2022. This recognition underscores Dapoq Cik Ina commitment to

sourcing high-quality packed foods from local vendors, enhancing its reputation as a

trustworthy provider of premium products in the area. The company's focus on customers and

excellent service boosts its competitive edge in the packed foods industry.

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3.0 PESTEL ANALYSIS

3.1 POLITICAL

Political factors significantly influence Dapoq Cik Ina operations in Kangar Perlis,

particularly concerning food safety regulations and trade policies. While government standards

ensure product quality and consumer trust, compliance measures increase operational costs,

affecting profit margins. Additionally, trade agreements impact ingredient availability and

costs, with favorable agreements enhancing competitiveness but trade restrictions posing

procurement challenges and financial instability.

Government initiatives supporting local businesses offer opportunities for Dapoq Cik

Ina to broaden its vendor network and product range. Incentives and subsidies to local food

producers encourage collaboration and innovation, facilitating unique offerings. However,

navigating bureaucratic processes efficiently is required to overcome the operational challenges

posed by the administrative complexities of accessing these benefits. Moreover, political

stability and effective governance are vital for creating a favorable business environment. A

stable political climate ensures consistency in regulatory frameworks, enabling smooth

operations for Dapoq Cik Ina. Conversely, instability disrupt supply chains, impacting the

company's ability to meet customer demand and maintain product quality.

Also, government investments in infrastructure development are enhancing the

efficiency of Dapoq Cik Ina distribution operations. Improved transportation networks and

logistics facilities reduce costs and delivery times, benefiting both vendors and customers.

However, delays in infrastructure projects hinder the company's growth and market

competitiveness, requiring proactive engagement with authorities to address these challenges.

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3.2 ECONOMIC

Perlis's economy, heavily reliant on agriculture, directly impacts Dapoq Cik Ina's

financial stability and growth. Fluctuations in agricultural output affect local purchasing power

and consumer spending habits, influencing demand for the company's products. Additionally,

inflationary pressures in 2021 led to rising production costs for Dapoq Cik Ina, squeezing profit

margins and impacting financial performance. Despite cost increases, the company-maintained

prices, further affecting its bottom line.

Economic growth prospects in Perlis also influence Dapoq Cik Ina business outlook.

During periods of strong economic growth, characterized by increased employment

opportunities, rising incomes, and consumer confidence, the company experience higher

demand for its packed foods as consumers have more disposable income to spend on

convenience items. This scenario presents growth opportunities for Dapoq Cik Ina to expand

its market presence, introduce new product lines, or invest in marketing initiatives to capitalize

on the favorable economic conditions and increase its revenue streams. On the other hand,

economic downturns present challenges for Dapoq Cik Ina, affecting its financial stability and

growth potential. Decreased consumer spending power, declining consumer confidence, and

stricter budget limitations result in reduced demand for packed foods, impacting the company's

sales and revenue.

3.3 SOCIAL

Dapoq Cik Ina operates in Perlis, where cultural trends significantly influence consumer

behavior. With a diverse cultural landscape comprising Malay, Chinese, and Indian influences,

the company aligns its offerings with local culinary traditions. For instance, including

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traditional Malay dishes like nasi lemak attracts the majority Malay demographic, while

offering Chinese-inspired dishes like fried noodles and dumplings caters to the preferences of

the Chinese community.

Demographics in Perlis shape consumer behavior, with diverse segments having

varying needs. Dapoq Cik Ina tailors its products to meet these specific needs, maximizing

market reach. For instance, the company offers convenient meals for busy demographics like

students and working professionals. It also provides nutritious options for families with

children, meeting their dietary requirements.

Lifestyle changes due to urbanization and globalization drive demand for convenient

packed foods in Perlis. As urban areas develop, residents seek quick meal solutions to match

their busy schedules. Dapoq Cik Ina recognizes these trends, offering a variety of packed foods

tailored to urban consumers' evolving needs. By providing convenient, high-quality options,

the company positions itself as the preferred choice for those seeking taste and quality without

sacrificing convenience.

The higher education landscape in Perlis influences consumer behavior, particularly

among students seeking affordable and convenient food options due to limited budgets and

busy schedules. Dapoq Cik Ina targets this demographic by providing value-for-money packed

foods tailored to their preferences for quick and affordable meals. Collaborations with nearby

colleges offering student discounts or promotions further attract this consumer segment and

boost sales. As Perlis develops economically and urbanizes, residents are placing more

emphasis on health and wellness, leading to a greater demand for healthier food options. Dapoq

Cik Ina responds to this trend by offering alternatives like vegetable salads, fruit cups, and

whole grains, appealing to health-conscious consumers.

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3.4 TECHNOLOGICAL

Dapoq Cik Ina relies on a network of vendors in Perlis to supply its products, enabling

it to offer a diverse range of options to customers. Use social media platforms such as

Instagram, Facebook, TikTok, and WhatsApp Catalogue, Dapoq Cik Ina effectively reaches its

target audience, engages with customers, and promotes its products. Through these channels,

the company showcases its diverse range of packed foods, highlights special offers, and

engages with customers directly.

Dapoq Cik Ina maximizes efficiency and decision-making capabilities by using the

Synergy system software to centralize business accounting operations. This streamlines

processes such as payroll processing, sales tracking, transaction and management of financial

data. Additionally, leveraging data analytics from the system enables the identification of

emerging consumer trends, fostering collaboration with local vendors to develop innovative

packed food products that meet customer demands, enhancing competitiveness and market

positioning. The adoption of technology extends to enhancing the overall customer experience

for Dapoq Cik Ina. Through its digital platforms and integrated technology system, the

company offers convenient online payment options, streamlined order processing, and

responsive customer support services. This customer-centric approach fosters loyalty,

strengthens brand reputation, and drives sustained growth and success for Dapoq Cik Ina in the

competitive packed foods industry.

3.5 ENVIRONMENTAL

The lack of eco-friendly packaging from Dapoq Cik Ina suppliers creates a significant

challenge in supporting sustainability goals. Despite the Dapoq Cik Ina desire to adopt

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environmentally conscious practices, the absence of suitable packaging choices hinders its

ability to decrease its environmental impact. This limitation not only impedes Dapoq Cik Ina

efforts to reduce its environmental impact but also influences its reputation among

environmentally aware customers who value sustainable packaging.

Climate change presents risks to Dapoq Cik Ina's operations, causing supply chain

disruptions and logistical challenges due to extreme weather events like floods or droughts.

These disruptions lead to delays in product delivery and increased costs, impacting customer

satisfaction. Additionally, environmental regulations influence the company's operations, with

adherence to strict standards requiring investments in eco-friendly practices and materials.

Failure to comply damage the company's reputation and undermining customer trust.

3.6 LEGAL

Legal factors, including labor laws, taxation policies, and regulatory compliance, are

pivotal in shaping Dapoq Cik Ina business practices and risk management strategies. The

company ensures fair treatment of employees by adhering to labor laws during recruitment,

fostering a positive work environment, and minimizing legal disputes. By complying with

taxation regulations, Dapoq Cik Ina fulfills its tax obligations accurately, maintaining financial

transparency and integrity to build trust with stakeholders. These adherence efforts demonstrate

the company's commitment to upholding employee rights, promoting ethical business practices,

and being a responsible corporate citizen. Regulatory compliance requirements ensure Dapoq

Cik Ina maintains safety, quality, and legality standards for its products and services. Adherence

to regulations like food safety and packaging minimizes risks such as product recalls and legal

issues, safeguarding the company's reputation. By meeting regulatory standards, Dapoq Cik Ina

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enhances consumer confidence, assuring them of the safety and reliability of its packed food

products.

4.0 ANALYSIS AND RECOMMENDATIONS

The PESTEL analysis of Dapoq Cik Ina identifies challenges and opportunities across

political, economic, social, technological, environmental, and legal factors. Compliance with

food safety regulations and trade policies impacts costs, while government initiatives offer

collaboration opportunities. Economic fluctuations affect financial stability, but growth

presents expansion prospects. Social understanding drives market reach, while technology

enhances operations and engagement. Addressing eco-packaging and climate resilience is

crucial for sustainability. Legal adherence ensures ethical conduct, enhancing consumer

confidence.

These findings highlight the necessity for Dapoq Cik Ina to take proactive strategic

measures to capitalize on opportunities and address potential threats identified in the analysis.

The company should focus on streamlining bureaucratic processes to access government

incentives, diversifying its vendor network, and investing in infrastructure development to

ensure smooth operations. Additionally, monitoring economic trends, adapting product

offerings to changing consumer preferences, and embracing technological advancements are

crucial for market competitiveness and growth. Addressing environmental challenges through

sustainable practices and complying with legal requirements further enhances the company's

reputation and fosters consumer trust. By staying agile and responsive to external factors across

political, economic, social, technological, environmental, and legal dimensions, Dapoq Cik Ina

can navigate the dynamic business landscape, capitalize on opportunities, and drive sustainable

growth in the competitive market of Perlis.

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 To capitalize on political opportunities and reduce risks, Dapoq Cik Ina could engage

in proactive advocacy efforts to influence food safety regulations and trade policies positively.

By actively participating in industry associations and lobbying groups, the company can

advocate for policies that support local businesses while ensuring compliance with regulatory

standards. Additionally, forming strategic partnerships with local government agencies and

policymakers can facilitate access to incentives and subsidies, helping to offset operational

costs and enhance market competitiveness.

Dapoq Cik Ina can utilize strategic initiatives to seize opportunities and tackle

environmental threats. By adopting environmentally friendly packaging and collaborating with

suppliers, the company reduces its ecological impact and attracts environmentally aware

customers. Implementing waste reduction strategies enhances its reputation as a socially

responsible entity. Moreover, contingency plans for climate-related disruptions ensure supply

chain reliability, achieved through diversified sourcing and resilient supply chains. Through

prioritizing environmental sustainability, Dapoq Cik Ina strengthens its market position and

ensures sustained growth in Perlis's packed foods sector. Furthermore, Dapoq Cik Ina can

address economic factors by implementing adaptive pricing strategies during inflation,

exploring cost-saving measures, forming alliances with local agricultural producers for stable

ingredient supply, and investing in marketing campaigns emphasizing budget-friendly quality.

This proactive approach to pricing and supply chain management enhances resilience to

economic fluctuations, ensuring financial stability in Perlis's dynamic market.

To enhance its competitiveness and adapt to the external environment, Dapoq Cik Ina

could focus on several strategic initiatives tailored to its unique circumstances. Firstly, given

its reliance on local vendors and commitment to community involvement, the company could

further strengthen its ties with these vendors by investing in their capacity building and

sustainability practices. By providing training and resources to help vendors improve their

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production processes and adopt eco-friendly practices, Dapoq Cik Ina can ensure a more

sustainable and reliable supply chain while also enhancing its reputation as a socially

responsible enterprise. Additionally, by embracing technological advancements, such as a

centralized technology system, Dapoq Cik Ina can further optimize its operations and enhance

customer experience. Expanding the capabilities of its Synergy system to include online

ordering and delivery, inventory management, and delivery tracking can streamline processes

and improve efficiency.

5.0 CONCLUSION

The case study investigates how external factors impact Dapoq Cik Ina, a small medium

enterprise in Kangar, Perlis, using a PESTEL analysis framework. It assesses political,

economic, social, technological, environmental, and legal influences on the company,

highlighting challenges like regulatory costs and economic shifts, alongside opportunities such

as cultural consumer trends and technological advancements. Understanding the external

environment through frameworks like PESTEL is essential for small companies like Dapoq Cik

Ina in Malaysia to navigate a competitive market successfully. By analyzing political,

economic, social, technological, environmental, and legal factors, businesses can identify

growth opportunities, manage risks, and align strategies with market dynamics. This

comprehensive understanding enables swift adaptation, sustains competitiveness, and ensures

long-term viability, allowing small businesses to carve out their niche, build resilience, and

thrive in their industries. In a nutshell, Dapoq Cik Ina's strategic approach is crucial for growth

in Perlis. By addressing challenges across various areas and leveraging opportunities, the

company can enhance its market influence and adaptability. Proactive advocacy, sustainability,

and technology are key for competitiveness and satisfaction. Strengthening partnerships and

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tech adoption will boost operations, securing Dapoq Cik Ina's leadership in Perlis's packed

foods market.

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6.0 REFERENCES

1. Log in or sign up to view. (n.d.-c). https://www.facebook.com/DapoqCikIna/

2. Instagram. (n.d.). https://www.instagram.com/dapoqcikina/
3. PESTEL analysis: Identify external forces affecting your organization. (2024, March
20). BDC.ca. https://www.bdc.ca/en/articles-tools/business-strategy-planning/define-
strategy/pestel-analysis-identify-external-forces-affecting-your-organization
4. Choo, J. (2023, October 4). What is PESTEL Analysis – How Does it Help Your
Business? THE STRATEGY JOURNEY. https://strategyjourney.com/what-is-pestel-
analysis-how-does-it-help-your-business/
5. Heubel, M. (2023, October 14). PESTLE analysis: The Macro-Environmental analysis
explained. Consulterce. https://consulterce.com/pestle-analysis/
6. Staff, H., & Staff, H. (2023, October 15). PESTEL (PEST) analysis: How to evaluate
external influences. HRDQ. https://hrdqstore.com/blogs/hrdq-blog/pestel-analysis-
how-evaluate
7. MasterClass. (2022, April 19). PESTEL Framework: The 6 elements of a PESTEL
Analysis - 2024 - MasterClass. https://www.masterclass.com/articles/pestel-framework
8. Makos, J. (2024, May 1). What is PESTLE Analysis? [Easy Explanation]. PESTLE
Analysis. https://pestleanalysis.com/what-is-pestle-analysis/
9. Hatoum, M. B., Nassereddine, H., Musick, S., & Eljazzar, M. S. (2023). Investigation
of PESTEL factors driving change in capital project organizations. Frontiers in Built
Environment, 9. https://doi.org/10.3389/fbuil.2023.1207564
7.0 APPENDIX

SSM Company
Dapoq Cik Ina products
Selfie and picture with small medium enterprise owner (Dapoq Cik Ina Owner)

Facebook Dapoq Cik Ina

 TikTok Dapoq Cik Ina

Instagram Dapoq Cik Ina

WhatsApp Catalogue of Dapoq Cik Ina

Data analysis of Cookies Dapoq Cik Ina