INTERNSHIP FINAL REPORT

YEAR 2014
1. Title Page

1.1. Student Name : Nik Fadli Nik Fauzi

Student ID : 002F5412
Faculty : Advanced Diploma in Interior Design
Program : Internship
Year : 2014

1.2. Internship Start Date : 8th April 2014

Internship End Date : 3rd July 2014

1.3. Company Name : Kian Interiors Sdn Bhd

2. A Brief Executive Summary of the Internship

I decided to make my work placement in Malaysia on account of two things. On the first hand,
the fact that the “License” is specialized in International Trade tip the scales. Indeed, I think it is
better to go yourself abroad to have a real insight of the international area and in particular in a
professional purpose in order to keep experience. On the second hand, I read that Malaysia was
attracting more and more foreigners company since 5 years. So, I thought it was a good idea it
meant that the economy was convenient, so that they will maybe a need in work labor force so in
interns. And finally, Malaysia was definitely an unknown place for me and insofar as this
country makes a part of the Asian continent, it enables me to have a foothold on the continent
which is currently leading the worldwide economy.
My work placement took place in “KIAN Sdn Bhd” in Kuala Lumpur, a furniture company. The
furnishing industry is classified in consumer goods. It group together furniture’s manufacturing
in all fabrics: wood, metal, plastic, rattan, wicker and so on… The evolution of technology
enables steel, iron and aluminum to enter, about the XIX century, into the furniture
manufacturing. If the wood or its derivatives remain in the composition of more than half of
them, the diversity of materials (plastic, leather, metal, glass ...) profoundly modified the
structure of the sector. The materials innovation’s research leads to evolution in terms of comfort
but also respect for the environment.
The furniture sector’s products contained:
- Finishing furniture (Bedroom, living room)
- Outdoor furniture
They are destined for domestic and professional use (seating, office, education, and residential
furniture, and etc.
Ranking the 10th largest exporter of furniture in the world, Malaysia exports around 80% of its
production. With large markets in US, Japan and Australia, Malaysia's has a strong position in
the global furniture industry. With tremendous growth in exports to UAE, Saudi Arabia, the
Philippines and Russia, Malaysia is now eyeing on countries like Algeria, Greece, Puerto Rico
and Libya.
Malaysia has always been known for its wood based furniture, owing to its natural resources.
Malaysia is a rich country regarding his raw resources. It is the third world's largest producer of
rubber and the second largest producer and exporter of wood. Popular with overseas buyers of
the middle to high category, foreign buyers look to Malaysia for manufacturers who can meet
their high production demand.
Despite numerous economic downturns, the industry is still supported by a strong global
demand. While lower priced Chinese and Vietnamese furniture pose strong competition,
Malaysian furniture continues to set itself apart with original design that places importance on
aesthetics as well as its good work ethics.
3. Table of Contents

3.1 Description of the Company/ Institution

3.2 Overview of the Internship

3.3 Experience gained during the internship period

3.4 Objectives/Expectations and Achievements/ Reality of the Internship

4.0 Final Assessments and Conclusion of the Report

5.0 Appendices and supplementary materials

6.0 Reference page

3.1 Description of the Company/ Institution

3.1.1 from 1983 to nowadays

KIAN is a family business created in 1983 which manufactures and suppliers furniture for the
commercial and residential sectors. KIAN is only doing business to business transactions.
So in 1983, KIAN made its first factory of table tops for wholesale in Hong Kong. Strong of this
succeed, in 1985, KIAN has been set up in Malaysia. More precisely, it has been in Kuala
Lumpur, Penang and Johor Bahru. Export operations, only start in 2001.
KIAN makes seating, tables, outdoor and bedroom furniture. The company also makes “custom
made product”. It means that KIAN develops a product range that suits customer existing design
scheme. It permits them to have their own customized signature pieces that no one will have
except them. So, it has five strategic business units in furniture area: Lifestyle furniture, Food &
Beverage furniture (F&B), educational (classroom and student room at universities) furniture,
library furniture, ready-made and customized hostel furniture.
KIAN is divided in three entities. Actually, the company is composed of “KIAN Contract”,
“KIAN export” and “KIAN Interior”.
“KIAN Contract” makes standards product for restaurants, pub and bars. Standards products
means those one which came from catalogues.
“KIAN Interior” makes “custom made” products for Hotels and resort.
And finally, “KIAN Interiors” where I am doing my work placement products for Hotels and
resort.
KIAN has showroom and factory in Malaysia and China along with partner manufacturers in
Vietnam and Indonesia with an extensive database of established suppliers. Moreover, it has
offices in Malaysia, Singapore, Hong Kong, Guangzhou, Beijing and Shanghai.
With an area over 30,000 m2, KIAN’s manufacturing plants are divided in different departments
that specialize in different products. That permits to manufacture a wide range of very different
products, ranging from metal works, polypropylene injection, rotary molding, synthetic wicker
weaving, woodworks and upholstery.
The Malaysian plant is specialized in wood and upholstered products. Regarding, the Chinese
factory is conforms to stringent worldwide standards (ISO9001:2008) and the products have
passed international tests such as ANSI/BIFMA test and 3000 hours of exposure to sunlight for
outdoor products. Thanks to this, KIAN can access worldwide market often suspicious on the
“made in Asia”.
KIAN believes that Corporate Social Responsibility, fully integrated into the pursuit of business
objectives, will in the long term, add value to its business and be appreciated and rewarded by
their stakeholders.
KIAN is aware that it has an impact on the communities in which it operates, and it strives to
support and contribute to the well-being of its employees, local communities and society as a
whole.
The company has made considerable progress over the years in meeting environmental and
social challenges and shall further pursue it efforts within the framework of its business.
KIAN periodically undergoes social audits in order to comply with McDonald’s and Starbucks
social accountability requirements. Such standard addresses areas such as safety at work,
compensation and working hours among other things. So, KIAN believes a Corporate Social
Responsibility and supports Kiwanis International and World Wildlife Fund.
3.1.2 A complementary relationship: KIAN/Designers
Tie up designers and furniture maker together is vital with the globalization. You must stand out
from the crowd. That’s why, KIAN works directly with talented local and international designers
in order to developing new ranges. So, it permits to innovate often as possible.
By effectively collaborating with award-winning design studios, KIAN is becoming more
prominent in the future wave of furniture solutions and competitive also in product development
lead time and manufacturing costs. KIAN is currently working with height local and
international designers. Cici Chen and Lui Honfay, Danny Fang, John Kelly, Mark Lafferty,
Rosalind Ong, Stephanie Maignan and Ton Haas join their talent in KIAN furniture solutions.
Those designers work closely with company, or their architects to develop a product range that
suits their existing design scheme. Thanks to this service, customers can have their own
customized signature pieces that no one will have except them.
3.1.3 Customer
For over 25 years, KIAN has built an enviable reputation to become one of Asia’s leading
manufacturers and suppliers to the contract industry.
Indeed, it provides to the commercial and residential segment of the industry, which includes
food court, international franchise, hospitality, accommodation and education industry, but also
important events.
It customers are present in more than one hundred countries all over the world.
Food court: In the food court industry, the company provides Shopping Centers and Mall,
Specialty Centers and also Public Spaces.
International franchises: KIAN carries out about McDonalds brand in Asia and in United
Kingdom. It carries out also about eateries and restaurant chain.
Hospitality: the company provides furniture in destination of Casinos and Gaming Rooms, Clubs
and Hotels or Restaurants and Cafés.
Accommodation: it provides Hotels and Motels, Resorts and Apartments.
Education: Classrooms, Cafeterias and Auditoriums.
Events: as the World Cup 2010 in South Africa, KIAN carries out about Major Venues, Special
Events, Corporate Offices & Branches and Government Facilities.
KIAN distributor customers’ are Specialist Department Store and Mail order by internet. Those
customers are a trader which buy KIAN products’ and sell them on its own name on foreign
market. Somme customers coming from the integrated trade, it means that they work according
to a central purchasing agency system. It can be a threat because of their size, they have a
negotiation power increased and they can impose their demand which can be a risk for KIAN.
For this latter, we can illustrate it with the customers McDonalds. Indeed, KIAN handles about
several McDonalds franchise all around the world. The company carries out about McDonalds
UK, UAE, Oman, Sri Lanka, Korea, Philippines and of course McDonalds Malaysia.

3.1.4 Competitors

Deven Design.
This competitor is KIAN’s main competitor for the Food & Beverage market. It considered as a
direct competitor due to the fact that Deven Design sells the same products as KIAN, on the
same segment and approximately with the same prices. They have manufacturing capabilities in
metal; wood, and upholstery as KIAN.
This competitors company is weak in term of choices on plastic chairs, wooden chairs, outdoor
and alfresco.
“Deven Design” which has three offices in Malaysia (Klang, Pulau Pinang and Kuching) as
KIAN has three offices in Malaysia in Penang, Johor and Kuala Lumpur. However, Kian has
others offices in Asia. So it is strength against them.

New Convox.
This competitor is also considered as a direct competitor although their core business is dining
ware. “New Convox” can be very competitive. Indeed, they sells the same products as KIAN, on
the same segment (the Food & Beverage market), so for the same type of customers.
Their products makes their way into luxury hotels, resorts, corporate offices, service centers,
restaurants, food courts, bars, cafes and even private homes. Moreover, they also make
personalized service for customers. What could be completely a real strength for this competitor
for two reason?
At first sight, it is because of “New Convox” strategy. They are doing a horizontal diversification
strategy by using the business link between their dining ware products and their furniture
product. It means that they catering the same customers, no need to spend a lot of money to look
for customers. Indeed, they already have those of their first strategic business units: it means
“dining ware range”. So those customers already know very well “New Convox” due to their
previous business link together and surely, trust on their reliability.
Secondly, this competitor also cares about private home unless KIAN is not carry out of this
market. As said before, KIAN only makes business to business transactions. (B to B)

3.1.5 KIAN Market

KIAN is making it main sales in the domestic market by consecrating 62% of its sales.

KIAN uses direct selling in the domestic market which permits reactivity to customers and to
build a real relationship with them.

That’s why; KIAN has current offices in Kuala Lumpur, Penang and Johor service the Malaysia
and Singapore markets. It permits KIAN to be closer to its customers.

KIAN aims to have 10 regional offices servicing the domestic markets by 2020.

Colleagues in the Shanghai and Guangzhou offices handle about the domestic China and Hong
Kong customers.

Export market (38%):

KIAN’s products are exported to over 100 countries around the world. The company penetrates
indirectly the foreign market by using the subcontracted exportation. It means that KIAN deal
with a distributor based in it target export market who sell to end users. The advantages of this
kind of exportation is that risks are limited for KIAN indeed, this latter in weakly involved in
terms of export structure, financial and humans resources. Moreover, the distributors, has
experience and knowledge of the market. So the distribution circuit is short so as to increase their
effectiveness. KIAN gains time in the foreign market penetration by leaving the management
related to the sale of its products (detailed expertise for overseas markets approach, local
distribution network). However for some customers, sells can be occasional and they can also
sell competitors’ products.
By mixing direct and indirect distribution, it permits to the company to be more flexible and
more efficient.
KIAN also uses Agent in order to research customers abroad.
3.2 Overview of the Internship
Among the different tasks that I made during my internship, I noticed my duties were mainly
focus on the customers, although I do a little assisting on designing. In whole, I had to handle to
customers relationship management by maintaining good relationship with current and potential
clients.
3.2.1 Resources
During the leading of this duty, I have been assisted by my tutor. He works in the company for
five years which enable him to gain experiences add to his skills from his degrees at University.
Besides, there are also the export team colleagues who can help me on this job.
Also, I dispose of my own skills acquired during my scholarship. It will enable me make easier
some duties understanding. More precisely in terms of management skills or humans resources
and communication skills, thanks to my different degrees. So I learnt about doing administrative
tasks but also about humans’ recourses management.
3.2.2 Constraint
Company has to cope with the “competition” factor.
Companies operate in an environment increasingly competitive. Which is global now, with the
development of communication technologies and the Internet, The new product development and
innovation are accelerated.
Consumers have more choices. They expect the company to respond quickly and with high
quality products and perfect service to their new requirements.
While lower priced Chinese and Vietnamese furniture pose strong competition, Malaysian
furniture continues to set itself apart with original design that places importance on aesthetics as
well as its good work ethics.
In Malaysia, there are more than 750 furniture manufacturing and export companies, with
another 1,500 smaller concerns playing a supporting role.
Companies are struggling keep customers more and more unfaithful and win new ones is much
more expensive. Indeed, you have to do this, they must both offer products and quality services
and develop long term relationships with their customers in order to satisfy them. But
differentiation is difficult and expensive to implement, and keeps you ahead of the pack only
temporarily.
Some customers break their contracts with their suppliers because they are not properly taken in
hand.
That’s why; it is a relevant aim to handle properly to its customers.
Two solutions are possible to attract the customers. First one, use Marketing tools in destinations
of the customers directly by discount, making expensive marketing communication or play on
the attractiveness of the showroom and so on. But this solution does not permit easily to keep a
competition advantage in the longue term. Indeed, competitors will quickly do the same and at
this moment, your company does not stand out from the crowed for a long time. And with each
tools find, it will be the same story over and over again. That’s why, the second solutions below
can be a real add values for company from the customers eyes.
Second solution is to attract the customers by attract the employees first. It will create a snow
ball effect by the way on the customer’s satisfaction.
When the competition escalates and customers are more and more demanding regarding the
quality of products, companies have to increase each employee’s awareness on the customer
loyalty, not only those who are in contact with customers.
Indeed, manufactures quality, attention to solve technical issues, respect of maintenance
standards and procedures defined in the company have an impact on the quality of the products
and the relational climate between a company and its customers.
3.3 Experience gained during the internship period

Mission leads and analysis

This internship gives me the opportunity to leads different mission. Those varieties tasks dealt
from marketing video translation or administrative tasks to verification of some technical
information by making measures of seating ranges for factories manufacturing. But, in the
whole, the main tasks gave to me was focus on customers management.

Price list:
My missions began by creation of price list of several collections from KIAN products.
This works enable me to have an understanding of the company products. Indeed, I could
have a proper view of the product specification which has been essential and relevant regarding
the fallowing missions.

Quotation:
I have made several quotations for customers in order to inform them about KIAN products
prices and characteristics. More precisely on the product description, cbm3 , packing, the price
per unit in United States Dollars, cbm3, the total price and Free On Board (FOB) price. The FOB
Incoterms using is the best option because the company works with sea transport and the
Incoterm that meets the stringent requirements of the importing country.
I sent quotations for two kinds of customers. The first one, prospects who were interested by
KIAN products during exhibition. My aim here was to keep the link between KIAN and the
prospect.
Having begun to doing price list, it was a kind of “training courses” for quotation work which
has been easiness.

Chasing up customers:
I helped to receive foreigner customer in order to visiting KIAN showroom. However, we did
not have news from him during a while. So, I chased them up by email to hold the relation and
keep the visibility from the customers. Thanks to that, even if they do not go to the purchasing,
they will keep the company in memories for subsequent purchases.

Emailing:
I had to contact various developers, Architects, and Hotel owners for potential client.

Training:
Technical product knowledge: My tutor taught me more about KIAN product in terms of
materials used into the manufacturing process. Moreover, it enables me to understand some
technical words in quotations. It permit me to know more about the product, because if you want
to sell a product and make it attractive to customers you have known it yourself first.

Customer Relationship Management software:

After being trained on the Fastquote Software, which is an in house software to key in the
quotations, sales order, and also updating the latest available materials and products.
3.4 Objectives/Expectations and Achievements/ Reality of the Internship

Emergence of Corporate culture: employees put ahead

The corporate culture is represented by a whole of values (conviction and behavior) of an
organization. Those values contribute to the creation of richness in the relationship with
employees, customers, providers, shareholders and the society.
Through my different duties, I can see several references from a strong presence of corporate
culture into the company. Also, here is below, an analysis a KIAN corporate culture.

Values:
Kian values below are beliefs shared by each employee and define the way to act and think
within “KIAN tribe”.

The company expect several behaviors from their employee according their matrix values:

Innovation and passion behaviors:

Innovation and passion behaviors are expected from their employee in order to cope with their
core values: the KAIZEN for a continuous improvement in the company. Finally, it permit the
company to be coherent with its brand promise communicate to outsider. It means provide an
excellent design and an excellent service offer from employees to their partnerships.

Honesty, Courage, communication behaviors:

All those behaviors expected will enable the creation of an authentic relationship between all
KIAN members. So, all those elements quote before, can show to the partnership that they can
trust KIAN.

Committed behavior:
It copes with KIAN reliability values. Through this core values, KIAN tends to communicate
about its quality on time delivery and its commitment on responsibility.
Good Judgment and curiosity behaviors:
It means that the judgment must be constructive and helps the person concerned to improve
himself.

Selflessness behaviors:
It represents the 1 KIAN Spirit and lead to two point of KIAN spirit: a high performance from
employees which leads to a fair reward from Direction.
Those values represent the KIAN company philosophy.

Finally, all those values have been sum up and lead to the creation of a code of honor. This latter
represents the “1KIAN spirit”. It advises employees on many ways. Firstly, to support their
team by prioritizing mission first, team second and individual third. Secondly, to never
abandon a team mate in need. Third, it encourages everyone to sell. Then, it reminds them to be
energetic, powerful & positive at all times. Also, being 100% commitment towards system and
responsibility. Next, they have to finish what they started and take responsibility. At last, they
have to keep confidential information at work and so to not betray they company.
Environment care:
KIAN believes that Corporate Social Responsibility, fully integrated into the pursuit of
business objectives, will in the long term, add value to its business and be appreciated and
rewarded by their stakeholders.

The company is aware that it has an impact on the communities in which it operates, and it
strives to support and contribute to the well-being of its employees, local communities and
society as a whole.

The company has made considerable progress over the years in meeting environmental and
social challenges and shall further pursue it efforts within the framework of its business.

KIAN periodically undergoes social audits in order to comply with McDonald’s and Starbucks
social accountability requirements. Such standard addresses areas such as safety at work,
compensation and working hours among other things. So, KIAN believes a Corporate Social
Responsibility and supports Kiwanis International and World Wildlife Fund. Also, KIAN
gives priority during manufacturing process to materials which are recyclable. Everyone is
involved. Also, Employees do not throw their used paper but recycle it.
Symbol:
The symbol of the corporate culture has a link with the core values of KIAN Company.

T-shirt:
Each employee has a T-shirt with the name, colours and slogan of KIAN.

RITES
They come from the shared values and concern:

Recruitment process:
When the company want to extend it team by hiring new personal, it emphasizes values in the
employment. Indeed, the human resources personal who interviewed the candidates try to see if
this latter have the ten values quoted above.

New recruit reception:

When a new employee has been hired an email is sent to each employee. This latter is sent in
order to inform them about the new recruit. Then, one of the department colleagues of the new
fresh recruit go to around for “meet & greet” shortly to everyone. Next, he is invited by his
department leader for a lunch.
Moreover, one of the human resources colleagues shows to him a PowerPoint presentation of the
company and explains to him KIAN history and its functioning. It permits to pass the corporate
culture on the new recruit.

Weekly report:
Every week, employees have to send a report to their team leader. They recap their week, and
share their learning, and challenges with their department team leader. Also, they explain
about their achievements, the bridges built and above all, the link between the work done and the
corporate identity.
4.0 Final Assessments and Conclusion of the Report

The corporate culture is represented by a whole of values (conviction and behavior) of an

organization. Those values contribute to the creation of richness in the relationship with
employees, customers, providers, shareholders and the society.

KIAN company was the best example to illustrate this notion.

Corporate culture’s values are so strong that it appears through symbols pointed up by explicit
signs and codes. Language appears as the most expressive symbol of culture, which is the case
in this company. The introducing of a common language makes easier the flow of information,
social communication and decision making. Also, symbols lead to ritual.
Environment and atmosphere that carry the company show the coherence of corporate culture
that implement within the organization.

Corporate culture gives to employees a strong real sense of belonging to their company and at
the same time a sense of reference from KIAN company which can leads to motivation to
develop their commitment sense, productivity, so profit earning.

So, to summarize, like Chinese culture, KIAN culture is really marked by respect and loyalty,
so employees promote the interests of the group.

As the corporate culture is specific to each company, so it can lead to one of the several
condition of the effectiveness of a differentiation strategy for KIAN.
It makes it stand out from the competition by creating its proper culture.

A strong culture is undeniably a competitive advantage through its impact on the cohesion and
motivation of staff, as well as its involvement in productive effort. It allows a better
understanding of the social climate and promotes initiative, skill, creativity and pride among
the employee. Also, it gives energy, stimulate enthusiasm and give a coherent picture to
outsiders.

Behavior within the company is united and coherent.

Coherence of action is provided by a common future view shared by every employee in the
organization. Corporate culture forms this common vision which ensures relevance of initiatives
taken by each employee towards the environment.

Shared values help build a common project. To me, this stay brings me a lot to me
professionally but above all personally. I find that my mission has been followed
chronologically to the some extent that each of them helps me pass to the next step that is to say
to the next mission. In addition, this internship allowed me to see in the right professional
context the teaching of intercultural management courses and approach to the Asian market.

As for my professional future, I intend to spend part abroad in order to develop knowledge on
international context as a first time. Indeed, this work placement gave me the willing and the
urge to travel through several countries.
5.0 Appendices and supplementary materials

*All works done are arranged accordingly.

6.0 Reference Page

http://www.kian.com/
http://www.bciasia.com/
http://fastquote.kian.my/
http://mail.kian.com:8080/Login.aspx#page=