economics report2222

LOH MUN TONG (0323680) l TAN JIA SAN (0322406) l ADELE LU KHAI SYN (0323151) l CALVIN WONG PING KET (0322481) l KIEW CHEE YUAN (0323297)

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Q: How much capital is required to start this business? A: RM200k approximately Q: Generally, do you feel it is easy or hard to enter this market? Why? A: It is quite hard because we are new in this market and have no experience in it. In addition, we also need to make sure that we provide the best services to our customer. Q: Where do you see your business in the next year? In the next five years? The next ten years? A: As we have not deciding to open any branches at the moment therefore we will just focus on this shop. We were hoping that we will become best of all desserts shop. Q: What do you most attribute your success? What would say are the five key elements for starting and running a successful business? A: I think it’s time that matters the whole succession. We dedicate lots of time for the preparation of our honey toast.


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Transcript (Sweet Hug House): Ng Kam Wai and Cheong Phooi Leng

Q: When was the business founded? A: started since November 18th, 2012 Q: Who are the key founders? A: Ng Kam Wai and Cheng Phooi Leng Q: What type of business plan did you employ to operate your business? A: We use our own recipe to produce our desserts Q: What prompted the founder to start this business? A: I used to work in a 6-‐star hotel in Genting Highland before that and I move back to Kampar recently to take care of my children. Therefore, I decided to start this business to earn a living.

Q: What are your main products or services provided? A: Our signature dessert is cheesecakes, chocolate lava, and fondue. For main course, we have honey chicken chop and black pepper lamb chop.

Q: Who are your customers? (Age, group, income level, education level) A: 50% of his customers are families, 30% of them are students and the 20% are mostly Malays and Indians.

Q: What is your annual revenue? A: About RM100k Q: How many employees do you have currently? A: 5 full time, 1 supervisor and 4 waitress

Q: What is your estimated current number of customers? A: about 100 people for normal season and 200 during peak season.


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Q: Your recent development? (What has the business accomplished, what changes had occurred?) A: We’ve makes some new changes to our menu and collecting customers’ feedback. Q: Why do you choose to sell desserts? A: Because I have experience in this field by what I observe when I was working in the hotel before that. Moreover, we have less competitor in selling desserts in Kampar too. Another reason is there are many students living in this area.

Q: What is the uniqueness between your desserts and many others? A: What special about us is that we use homemade recipe. In addition, we will change our recipe every 2 to 3 months according to the customers’ need and liking.

Q: What is your Future development? A: We plan to open another branch if possible.

Q: What difficulties you had face running this business? A: Since we are not franchise therefore we lack of publicity. We need to work really hard to attract more customer.

Q: Who are your competitors? A: We don’t have much competitors as our food taste differently compared to other shop. Therefore, it is based on the customers liking.

Q: How do you compete with your competitors (what strategies do you employ to divert customers away from your competitor? A: What we different from other desserts shop is that we produce our recipe on our own.


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Q: How much capital is required to start this business? A: Approximately RM100k Q: Generally, do you feel it is easy or hard to enter this market? Why? A: It is not easy as it needed a lot of time and effort in order to make it succeed. Q: Where do you see your business in the next year? In the next five years? The next ten years? A: As the economy now is not good due to the falling of currency. I hope that there will be an increasing number of customer each year.

Q: What do you most attribute your success? What would say are the five key elements for starting and running a successful business? A: Time and effort. We spend lots of time and effort in our recipe.


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Appendix 3: Comparative Analysis Summary Table

Competitive Traits Sweet Hug House Haraju Cube

1. Number of Competitors 4-‐5 3

2. Barrier to Entry Weak. This means that many competitors can enter the market easily.

-‐No legal barrier which is regulated by the government.

-‐No strategies barrier because most of the businesses will not adopt aggressive strategic moves to prevent new competition.

Weak, which means that many competitors can enter the market easily.

-‐ No strategies barrier because most of the business adopt aggressive strategic moves to prevent new competition.

3. Differentiated or Standardized Products (if differentiated provide 2 to 3 examples)

Differentiated products (dessert, main course)

Differentiated products

(dessert, main course, drinks)


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4. Pricing Power (Price Maker or Taker? Why?)

Low.

-‐According to law of demand, quantity of demand will decrease when price increases. Customers will switch over to other dessert shop if the business raises the price of the products. Pricing decision will also be affected by the competitors. So business should not simply adjust their prices.

-‐The business has high price elasticity of demand, which means that a small percentage of price difference will lead to a big percentage change of quantity demanded.

-‐Generally speaking, if a business doesn't have much pricing power then an increase in their prices would lessen the demand for their products.

Low.

-‐According to law of demand, quantity of demand will decrease when price increases. Customers will switch over to other dessert shop if the business raises the price of the products. Pricing decision will also be affected by the competitors. So business should not simply adjust the prices.

-‐The business has high price elasticity of demand, which means that a small percentage of price difference will lead to a big percentage change of quantity demand.

5. Other Characteristics (e.g. Any close product substitutes, mutual dependence, constant advertising)

Constant advertising could really boost up their products.

Their products are quite unique where there is less close product substitutes, but there are also similar products outside which is cheaper.

6. Verdict (Monopoly? Oligopoly? Perfect Competition?)

Monopolistic competition

-‐Large amount of small firms

-‐Each selling products that are differentiated from one another.

-‐Weak barriers to entry

Monopolistic competition

-‐ Large amount of small firms

-‐ Weak barriers to entry


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Appendix 4: Photos

Following are the photos taken in the interviews and document related to the related businesses.

Sweet Hug House

The interior design of Sweet Hug House

The exterior design of Sweet Hug House

We ordered a pandan lava cake. The dessert is designed in a Christmas theme as Christmas season is closed that time.


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Interview notes

Name card taken from Sweet Hug House

Details are as follow:

Name: Cheng Phooi Leng

Job position: Promotion & Event Planner

Phone number: 016-‐441 7760

Email address: [email protected]


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Sweet Hug House Facebook homepage

Link: https://www.facebook.com/sweethughouse

Group photo with Ng Kam Wai and Cheong Phooi Leng

Haraju Cube


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Interior design of Haraju Cube

Exterior design of Haraju Cube

Haraju Cube’s menu


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Interview notes

Photos of our group member interviewing the interviewee

Haraju Cube’s Honey Toast


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Haraju Cube Facebook page

Link: https://www.facebook.com/harajucube103/?fref=ts

Details are as follow:

Name: Daichi Fukuzato

Job position: General Manager

Phone number: 0377335973

Email address: [email protected]


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Appendix 5: Minutes of Meeting

DATE : 1st December 2015

TIME : 10am-12pm

VENUE: Library , Event Hall (2nd Floor)

NAME OF GROUP MEMBERS TUTORIAL GROUP ROLE

Loh Mun Tong TUESDAY (11.30am-1.30pm) Chairman

Calvin Wong Ping Ket TUESDAY (11.30am-1.30pm) Secretary

Tan Jia San TUESDAY (11.30am-1.30pm) Member

Kiew Chee Yuan TUESDAY (11.30am-1.30pm) Member

Adele Lu Khai Syn TUESDAY (11.30am-1.30pm) Member

NO. ACTIVTIY ACTION TAKEN BY

1. Introduction

i. Discussed the details of brief and understandwhat we were assign to

ii. Figured out what type of business to research

All members

2. Discussion

i. Decided two locations of business which is in Klang Valley and one is in outside of Klang Valley

ii. Did some research on how to make an interview with proper English

iii. Listed out some of the interview questiond. iv. Minutes of meeting will be recorded by Calvin

Wong Ping Ket

All members

3. Conclusion

i. We decided to use desserts shop for business research

ii. Briefly draft for interview questions iii. Next meeting will be on 4th December 2015 (after

showing progress)

All members


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DATE : 4th December 2015

TIME : 11am-2am

VENUE: Library (2nd Floor)










1. Introduction

i. Role of group members during interview ii. Preparation for interview

All members

2. Discussion

i. Decided locations for both desserts shop ( Kampar & Damansara)

ii. Finalized the interview questions iii. Distribution of roles of members during

interview : (Kampar) 1. Loh Mun Tong : Interview 2. Calvin Wong Ping Ket : Record notes

for interview 3. Kiew Chee Yuan: Videographer 4. Tan Jia San : Photographer/Record notes

for interview 5. Adele Lu: Brief Description/ Appendix

iv. Equipment needed for interview : 1. Camera

All members


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DATE : 15th December 2015

TIME : 2pm-5pm

VENUE: Library Event Hall










1. Introduction

i. Analyze interview answers and information

ii. Plan for next interview for Haraju Cube

All members

3. Conclusion

i. Interview session for Sweet Hug in Kampar will be at 11th of December 2015

ii. We will be having meeting after the interview to analyse the answers and information of interview

iii. Only some of the group members will be doing the first interview

All members


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2. Discussion

i. Roles of group members for report assignment 1. Loh Mun Tong : Cover page ,

content, key summary , Comparison 2. Adele Lu :Brief Description 3. Tan Jia San : Appendices ,

Bibliography 4. Kiew Chee Yuan : Competitors,

strategy, Comparison 5. Calvin Wong Ping Ket: Obstacle

Faced , recommendation

All members

3. Conclusion

i. Compile interview questions and answers for first interview by 23th of December 2015

ii. Next interview session will be on 23th of December, 2015

All members


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DATE : 12th January 2016

TIME : 12:00 pm-3:30pm











1. Introduction

i. Finish incomplete information and data need to be compiled

All members

2. Discussion


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i. History of both business shops: - Done Brief description :

- Done Video editing :

- Video for second interview not complete yet

Comparative analysis:

- Not Complete Competitors, strategy:

- Strategy part will be done in this meeting

Artistic cover :

-Finalize draft

Obstacle faced , recommendation :

- will be done in this meeting Appendices, bibliography, references

- Not complete

All members

3. Conclusion

i. Complete the tasks above and compile together by 15th of December 2015

All members


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DATE : 14th January 2016

TIME : 1pm-4pm











1. Introduction

i. Finalization of compiled research report All members

2. Discussion


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ii. History of both business shops: - Done Brief description :

- Done Video editing :

- Done Comparative analysis:

- Completed Competitors, strategy:

- Completed Artistic cover :

- Finalization stage

Obstacle faced , recommendation :

- Done

Appendices, bibliography, references

- Will be completed in this meeting

All members

3. Conclusion

I. Complete all the compilation and submit hardcopy of the report with a CD of interview videos on 15th of January 2016

All members


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References A brief History of Desserts ( Irtiqa RSS) Retrieved from http://www.irtiqa.co.za/a-brief-history-of-desserts. Accessed on 2 January 2016.

History of Baking and Pastry Cooking (History of Baking and Pastry Cooking)

Retrieved from http://www.pfisterconsulting.com/history.htm. Accessed on 2 January 2016.

Harajuku (Urban Dictionary) Retrieved from

http://www.urbandictionary.com/define.php?term=Harajuku .Accessed on 30 December 2015.

Haraju Cube (Time Out Kuala Lumpur) Retrieved from

http://www.timeout.com/kuala-lumpur/restaurants/haraju-cube . Accessed on 30 December 2015.

Sweet Hug House (Foursquare) Retrieved from

https://foursquare.com/v/sweet-hug-house/50ba1aece4b04656297d6f0d . Accessed on 30 December 2015

10 Spots Not To Be Missed in Empire Damansara | OpenRice Malaysia (OpenRice Malaysia)

Retrieved from http://my.openrice.com/klangvalley/article/10-spots-not-to-be-missed-in-empire-damansara/735 . Accessed on 31 December 2015 Seven

Cups & Epique, Empire Damansara, Damansara Perdana (The Garden NOM)

Retrieved from https://thegardennom.wordpress.com/2015/02/26/seven-cups-epique-empire-damansara-damansara-perdana/. Accessed on 31 December 2015

JJ Cafe @ Ipoh, Malaysia (Always Travelicious)

Retrieved from http://alwaystravelicious.com/2013/11/07/jj-cafe-ipoh/. Accessed on 1 Jan 2016

Bread Espresso Dessert

Retrieved from http://softshellcrabtemaki.blogspot.my/2012/10/life-in-bed-bread-espresso-dessert.html. Accessed on 3 Jan 2016.

economics report2222

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