jannah jaya
TRANSCRIPT
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
CASE STUDY:
Issues and challenges and key success factor in SME in
Malaysia:
- Focus on fabricated metal, food, etc.
Done By : Mohd Shafie Osman (GP 01615) 1
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
ABSTRACT
Small and Medium Enterprises (SMEs) play an important
role in the development of Malaysian economy, their
contribution to national economy is still relatively small. The
Government has made the development of SMEs as a high
priority area with a string of development agendas but SMEs
still face a lot of challenges and obstacles that deter them
from further expanding their business. These obstacles
includes lack of managerial capabilities, shortage in financing
and human resource and this increases the need for value
creation among SMEs to ensure business sustainability which
coexists within an environment of good corporate governance.
This study examines the usage of accounting tools and
professional services amongst SMEs. Objectives of this study
are to identify the type of business advisory services
purchased and gauge SMEs’ level of satisfaction on these
services, to determine how the business advisory services
purchased has helped SMEs in achieving competitive
advantage or success and to identify opportunities in providing
specialized assistance to SMEs in areas where they lack
certain skills. They tend to seek for assistance in marketing
Done By : Mohd Shafie Osman (GP 01615) 2
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
strategy on how to market their products in terms of branding
and promotion to increase their competitiveness in getting
investor or funder to help the growth of the business. Apart
from that, the SMEs need help in accounting services as to
help them delve more into their financial strength in order to
provide a better understanding of their financial position. SMEs
in the “global enterprise” stage generally were satisfied with
the level of quality services given by SMPs. They tend to need
assistance from the SMPs to assist the company to become a
public listed company and also to penetrate into the
international market. Findings also show that, SMEs in both
stages of growth faces challenges in tax planning and they
need to be equipped with the latest management tool to help
improve their business performance.
Done By : Mohd Shafie Osman (GP 01615) 3
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
1.0 INTRODUCTION
Small and Medium Enterprises (SMEs) play an important
sub-sector in the Malaysian economy and is considered as the
backbone of industrial development in this country. An
enterprise is considered as an SME based on annual turnover
or on the number of full-time employees.
In 2010, there were 523.132 organizations in the
manufacturing, services and agriculture sectors, and 518.996
of this total (99.2 per cent) were SMEs (SMIDEC, 2011). In
terms of distribution by industry, SMEs mainly in textiles and
clothing as well as resource-based industries. Textiles and
clothing accounted for 23.2 percent of the total SMEs, followed
by food and drink (15 percent), metals and metal products
(12.4 percent) and paper, printing and publishing (9.2
percent).
In contrast, the 451,516 establishments in the service
sector, 449,004 (99.4 percent) of the amount is made up of
SMEs. Of the total SMEs, 69.3 percent in distributive trade
(wholesale, retail and restaurants), followed by transport and
communications (6.2 percent), financial sector / banking (4.3
percent) and professional services (2.5 percent).
Done By : Mohd Shafie Osman (GP 01615) 4
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
In agriculture, from 32,397 active companies, 32,126
(99.2 per cent) were SMEs. Of the total SMEs, 65.8 per cent in
agriculture, marketing and farming, followed by fisheries (20.9
percent), poultry (6.9 percent) and agriculture and animal
husbandry services other (4.8 percent).
SMEs play an important role in the Malaysian economy in
terms of output value, the additional market, labor and
exports. In 2011, production of the SMEs recorded an average
annual growth rate of 5.3 percent which contributed to the
increase in total manufacturing output from 22.1 percent in
2005 to 29.6 percent in 2011.
2.0 JANNAH JAYA ENTERPRISE
Done By : Mohd Shafie Osman (GP 01615) 5
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
2.1 The company
Jannah Jaya Enterprise (thereafter referred as Jannah
Jaya) is one of the pioneer Bumiputra companies that cater
food restaurant in Merlimau Melaka since 1981. This is the
family businesses which will be heritage from one generation
to the next generation. Besides cater the foods to local
communities, the company’s core business nowadays includes
catering services to any function or event around Melaka.
Jannah Jaya now are trying to penetrated to the Singapore
market, with its food restaurant and catering services.
2.2 Getting sales: Overcoming obstacles and
venturing into new management
Just when Jannah Jaya was experiencing growth in their
business, they were hit with another letdown. On 1992, they
encountered a big problem. The company’s first owner En.
Zainal was encounter with heart attack and sadly informed
that he passed away. That incident affected the company so
badly when nobody from his families were willing to take over
his business because his first son was at the final year studied
in UiTM in pastry course. So his wife at that time with full
support from other families members continued Mr. Zainal
business while waiting his son Adnan finished his study. At that
time the business is nearly closed down. However, at 1993,
Mr. Adnan finished his studied and with his commitment and
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JANNAH JAYA ENTERPRISE – Restaurant and Caterer
perseverance, he managed to pull through and return to the
market in 1994. When they returned, they managed to
achieve another success which was venturing into the 24
hours restaurant with 7 days a week operation. Thus, it took
Jannah Jaya ten year,s before their restaurant could finally be
operated with 3 franchises around Melaka. With their quality
and consistent services Jannah Jaya always received tender for
catering at formal function and event which involved
government function for important and famous guesses in
Malaysia. Since 2005, they maintain received Grade A
restaurant for cleanliness and food handling from local Health
Department awards. Jannah Jaya may be a small SME, but it
is not too small to recognize the importance of Corporate
Social Responsibility.
Since 2008 they have accepted Polytechnic students
from course hotel and catering to undergo their practical
training in their restaurant. Jannah Jaya has provided a
platform for students to practise what they have learnt in the
classroom. Besides that, En. Adnan also accept disable people
from Welfare Department to work at his restaurant to show his
contribution in social responsibilities.
2.3 To the new franchise: Expansion and Growth
On 02.01.2013 Jannah Jaya has launched their third
franchise in Melaka. Presently, their main restaurant is handles
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JANNAH JAYA ENTERPRISE – Restaurant and Caterer
by En. Adnan’s wife Pn. Norhayati. Their second branch is
conducted by En. Adnan himself and finally with their proud
and happily, their third franchise is now conducted by En.
Adnan first sons En. Amin with the age of 22th. Now, Jannah
Jaya is slowly landing to their third generation.
With all the expansion and growth, Jannah Jaya is
advancing towards achieving its vision of being a successful
Bumiputra enterprise in the food services. Up till now, the
company is operating its business with 75 permanent workers
and 100 part time workers based on demand for catering
services. Jannah Jaya company now operated with 5 objectives
which are as follows:
• To increase the economy of Bumiputra people
• To produce high quality foods for customers
• To be the best example restaurant in food handling
procedures
• To prove that local Bumiputra restaurant are also able to
develop and produce homogeneous and quality food
products
• To maintain the recipe of Melaka heritage
Done By : Mohd Shafie Osman (GP 01615) 8
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
However, lately there have been many new restaurant and
catering that have penetrated the local market which made
the competition stiffer.
2.4 Factors for Success: Effective marketing
strategy, product rebranding and
government support
There are a few factors that have contributed to the
success that Jannah Jaya is enjoying today. One of the internal
factors is their effective marketing strategy of going to attract
big companies or individuals to get trust from them to give
Jannah Jaya chances to supply foods and conducts the catering
for their important event such as government event, wedding
function, organization function and personal individual event
such as birthday party or anniversary party. They uses variety
of marketing strategy. Some of them are;
1)Through electronic medium.
Jannah Jaya has advertise their business at Melaka Radio. En.
Adnan also has attended live interview by the Melaka Radio
three time a year.
2) Through published medium
Jannah Jaya has assigned private company to distribute
their pamphlets and brochures regarding the restaurant and
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JANNAH JAYA ENTERPRISE – Restaurant and Caterer
catering services once a week. Thus, Jannah Jaya also will put
their banners at the strategic places around Melaka to attract
people. They also advertise their restaurant and services in
Melaka 2U magazine that will be published once a month. This
magazine will be distribute to all houses in Melaka with motto
“one house one Melaka 2u”
Next, Jannah Jaya rebranding their services by choosing their
team colour which is orange colour. Through this all the
restaurant signboard, banners, fliers, and also the company
uniform will uses the orange colour. This strategies are really
give the big impact to the company sales. Since they use this
strategy, the company sales increases rapidly.
Next, in order to get the government support, Jannah Jaya will
joint any SME exhibition conducted by government. Instead of
getting consumers awareness, through this, they also get the
government awareness. The company has getting many
financial support from the government. They uses all the
financial support to expand their business by buying the new
kitchen tools and do the restaurant renovation. In addition,
when Jannah Jaya participated in exhibitions, they managed to
meet people from the media who requested for an interview
with them. The company agreed to take the opportunity as it
was a free promotion for them. As a result, their appearance
on the media helped boost their sales. With this, more
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JANNAH JAYA ENTERPRISE – Restaurant and Caterer
customers will be aware of their business. By supplier the best
quality of foods and services, plus the comfort restaurant for
customers, and present the good image, Jannah Jaya
Enterprise are getting to the pick of mountain now.
2.5 Challenges Ahead
Like any businesses, Jannah Jaya too has had its fair
share of ups and downs in its business venture. The increases
of new companies that offer the same services has gave them
a serious stress to maintain their business. Jannah Jaya has to
compete with the quality of food, the best services, and the
most important things in the reasonable prices. Until now,
Jannah Jaya is the popular restaurant at Melaka which offer the
cheaper prices of ready foods.
However, the Malaysian economic situation today, is not
certain. The gross prices which always change, will affect the
company profit every months. Jannah Jaya overcome this
situation by dealing with the direct seller without involving the
intermediate supplier in order to get the cheaper prices of
gross foods.
Besides that, Jannah Jaya also facing problems with the
product quality issue. As economic country growth well, there
are many factory are launched. Therefore many skilled
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JANNAH JAYA ENTERPRISE – Restaurant and Caterer
workers especially young workers switched their job to factory
sectors. This situation really gives impact where’s Jannah Jaya
faced the difficulties to maintain their foods quality taste. This
is because, they need much time to train the new workers to
become skilful workers.
Furthermore, it was also very difficult for them to obtain
bank loans as banks were very strict in providing loans to
SMEs. The banks required a lot of supporting documentations
and collateral to back up the loan. Therefore, it was indeed a
very big challenge for SMEs like Jannah Jaya to obtain funds to
expanded their businesses.
3.0 Bibliography
http://listings.allhalal.net/content/aj-food-industries-m-sdnbhd
http://en.wikipedia.org/wiki/Small_and_medium_enterprises
http://www.smecorp.gov.my/v4/node/14
4.0 Picture Attachment
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JANNAH JAYA ENTERPRISE – Restaurant and Caterer
Merlimau Town
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
Done By : Mohd Shafie Osman (GP 01615) 13
JANNAH JAYA ENTERPRISE – Restaurant and Caterer
Menu
Restaurant Dining
Done By : Mohd Shafie Osman (GP 01615) 14