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  • 1. PRINCIPLES OF ECONOMICS (FNBE0135) Page 1 SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN THE DESIGN SCHOOL FOUNDATION IN NATURAL BUILD ENVIRONMENT PRINCIPLES OF ECONOMICS (FNBE0135) Assignment: A Tale of Two Businesses A Comparative Analysis of 2 Businesses of Similar Industry in Different Geographical Locations NAME: LIM CHERN YIE 0315688 CHUA WEI JIE 0316323 LEE KIM THIAM 0310710 MUHAMMAD HASIF BIN ALIAS 0316413 HAZIM BIN ABDUL AZIZ 0315773 REPORT TITLE: RESEARCH PROJECT FOR BUSINESS OF CHAR KWAY TEOW IN PENANG AND KLANG VALLEY LECTURER: MR. CHANG JAU HO SUBMISSION DATE: 13TH JUNE 2014

2. PRINCIPLES OF ECONOMICS (FNBE0135) Page 2 Table of Contents Content Page Summary 3 Introduction of Ah Leng Char Kway Teow 4-5 Introduction of Aunty Gemuk Char Kway Teow 6-7 Comparative Analysis 8-9 Strategy 10 Nature of the Market 11-12 Summary Table 13-14 Analysis 15 Recommendations 16-17 Appendix 18-25 Reference Lists 26 3. PRINCIPLES OF ECONOMICS (FNBE0135) Page 3 Summary Throughout this whole report, you will be going through numerous contents like the descriptions, comparative analysis, recommendations, and so on. The first one is the descriptions on the businesses we interviewed, where you find their personal business information. After that, youll be going through the comparative analysis of the two businesses mentioned above where you find comparisons like the number of competitors in their area, brief biographies etc. Youll go through the recommendations section where youll find recommendations to improve their businesses success based on our viewpoint. The last two would be the bibliography, appendices, and of course, Legit references. 4. PRINCIPLES OF ECONOMICS (FNBE0135) Page 4 Introduction of Ah Leng Char Kway Teow The first business that we interview is the Ah Leng Char Kway Teow. It is one of the most famous Char Kway Teow stalls to be found in Penang. It is located along Jalan Dato Keramat, Georgetown. Ah Leng Char Kway Teow operates at a caf named Kafe Khoon Hiang. There are apparently 2 stalls at the caf, which are Ah Lengs, and an economy rice stall. Other than that, they are operating at just from 8.30am until 2.30pm. For customers who usually have lunch in the evening, they can go to the main branch, which is located near Jalan Chor Sin Kheng, Air Itam as theyre operating hours are from 6pm to 10pm. As has been mentioned earlier, there is a main branch located near Air Itam, which is currently taken over by the original founder, Teoh Koon Leong. The business has started since the late 70s, which was approximately in 1978. Today, it has handed down to the second generation being managed by the founders own son, Teoh Yung Hee. Teoh Yung Hee is the owner of the sub branch where we visited. Teoh Yung Hee started to take over at year of 2009 when he was 51 years old. Additionally, the business currently has a total of two branches and is hiring 3 hardworking employees to help out in the decrease of some burdens of the business. Then, Teoh Koon Leong was upholding his only product, which is Char Kway Teow for almost 40 5. PRINCIPLES OF ECONOMICS (FNBE0135) Page 5 years now, as it is only the main product they are selling and does not think to develop any other products. Prior to this, by the time the second branch was expanded, he was offering at Lorong Kulit Penang, found adjacent to the Maybank Fragrant Coffee Shop, yet now he has moved to Jalan Datuk Keramat due to the unwelcomed reviews. The place was also perceived as an unlucky place of earning money by relating to the Chinese traditional philosophical arrangement of fitting the human presence with the nature's domain, well known as Feng Shui. Next, when we asked the owner, Teoh Yung Hee about the motivation from his father by starting this kind of business at that time. Then he kindly explained to us that his father started learning the way to cook a fried Char Kway Teow based on his own personal interest and hobby. After some time, theyre family begins to face various kinds of financial crisis. Thus, Teoh Koon Leong decided to start the business by the only knowledge and capabilities of earning money that he applied. He first borrowed some money from his siblings and friends knew well because at that part of time, he cant even afford to start the business. After he managed to save enough money, he started the business without any hesitation, as he was the only breadwinner around his family. Although he did not get the flying color of results at the beginning, he tends to really work hard by not giving up easily. At last, he managed to earn as much income as he can then he paid all his debts to the ones he borrowed money from during his hardship. He also brought his family to the harmony and peace status. Since then the business is carrying on until now and being handed down to the second generation. As the second generations owner, Teoh Koon Leong had mentioned he would continue the business until the time he retires and definitely spread on to his young ones as he stated this is a family business and it must be carried on by their own family. 6. PRINCIPLES OF ECONOMICS (FNBE0135) Page 6 Introduction of Aunty Gemuk Char Kway Teow The second stall we interviewed was a local Char Kway Teow stall located somewhere near Klang Valley. The gene of the stall is Penang Fried Kway Teow, however, the people there preferred to call it the Aunty Gemuks Char Kway Teow. The reason we describe it that way was because the one who cooked the char kway teow, Ewe Sow Choo is a fat auntie. She wasnt mad but instead, she was happy that her dishes did not take all the credits. The stall received a lot of great feedbacks from the Internet. The stall shared its location with Restoran Jamal Mohamed, a mamak restaurant. Unlike any mamak themes, the restaurant consists of many individual stalls such as Nasi Lemak Kukus and Yong Tau Foo. It is located near SS 5A, Kelana Jaya. The restaurant is surrounded by a housing area and exactly beside the Football Association Malaysia(FAM) building. Furthermore, the place is very near to the busy highway, Damansara-Puchong Expressway(LDP). And if people take a left junction to SS 5A from LDP, the restaurant can be easily located about 100m away. Unlike the typical chinese char kway teow which have pork and lards in it, the Auntie Gemuks char kway teow is halal. This way, the stall managed to attract every races and religions in Malaysia to enjoy their delicious char kway teow. The pricings are RM5.00 for small 7. PRINCIPLES OF ECONOMICS (FNBE0135) Page 7 portion and RM5.50 for big portion per plate. Their char kway teow is a bit spicy than the normal one. The number and size of their prawns are little and small respectively. Even so, upon serving, the texture and presentation of the char kway teow on the plate looks very amazing it looks. The stall size was just the right size despite having small spaces, as it is only a shared space in the restaurant. They do not have any other branch, which makes it quite nice to attain such delicacy. With only 2 employees including the cooker, they are able to sustain about more than 150 customers per day. Not to mention that the stall only opened from 10am to 6pm everyday. The stall maintained in such ways for quite a long time without any new development or needs to expand their branch. The business was established since 1982, which means that the business has already exist for more than 32 years. The founder, Ewe Shiau Wei, was the father to current founder, Ewe Kong Chooi. He started the business because of his personal interest in char kuay teow. Ewe Kong Chooi later inherited the business after her father runs it for 10 years. The interesting part was, she is not the cooker. She insisted to be the waiter instead and asked her sister, the fat auntie to be the cooker. Lastly, the Auntie Gemuk Char Kway Teow is very lucky because they dealt with fewer risks and hardly need plans for any strategies, as there are very few competitors. The other char kway teow stalls located miles away and are not as popular as the Auntie Gemuks. The only competitors they have in the restaurant are stalls they share their business location with. However, the owner did not desire to compete with the other stalls and already considered them as part of the restaurant. 8. PRINCIPLES OF ECONOMICS (FNBE0135) Page 8 Comparative Analysis of Ah Leng Char Kway Teow and Aunty Gemuk Char Kway Teow Competitive Traits As a Malaysian, we all know that Penang food was truly Pearl of the Orient, and that was the reason numerous Malaysians barely strike an eyelash at the prospect of making the trek up to Penang to get those mouth-watering meals. There are a lot of amazing nice local street foods at Penang and Char Kway Teow is one of the most well-known foods there. This is the reason why the owner of Ah Leng Char Kway Teow, Teoh Yung Hee stated that it is hard to compete with others as there are much more famous and customer-based stall than them. Additionally, he mentioned that there has currently total of around 47 stalls that are operating in Penang. Although there has many stalls, Teoh Yung Hee is still can find out who are their competitors that stand as their top three. Lorong Selamat Char Kway Teow was the first he mentioned. He said Lorong Selamat has much more customer-based than them and the annual profits are leading them. Then, the next competitor is Sisters Char Kway Teow. It is located at Jalan Macalister. It's named so on the grounds that the Char Kway Teow stall is worked by a couple of sisters. The Lam's sisters had fried Kway Teow for around 50 years precisely at this venue. Some tour guides even introduce to the tourists that it is the best Char Kway Teow in Penang. The third competitor then is Siam Road Char Kway Teow. Obviously, it is located at Siam Road or we called Jalan Siam. However, Teoh Yung Hee mentioned that Siam Road has a very heavy weakness which they tend to let th