EXECUTIVE SUMMARY

At the end of the case study, we managed to get a lot of new knowledge about
businesses in the real world. We also got to evaluate business’s performance through
the SWOT analysis which comprises of Strength, Weaknesses, Opportunity and
Threat. From this study, we managed to identify a few of the company’s SWOT
aspects that can be improved over time. For example, the company’s facilities is
outdated, lack of cleanliness at the factory and poor marketing strategy.

SWOT analysis is vital in order to help the business to keep improving the
business performance because it evaluate business wholly and points out the
company’s advantages and what is lacking comparing to other businesses. Through
the identification of SWOT,the company are able to revise their business plan by
carrying out various of strategy.

Smiling Orchid Bakery & Cake are business that sells cakes and pastry in Tanah
Merah, Kelantan. The business’s main competitor is Secret Recipe who is a household
name in the bakery industry.The business make up the competition by selling their
products at a more affordable price for all the community.The company also promote
their business and products through advertisement in the Social Media such as
Facebook where they updates any discounts and promotion to their customers.

The company’s vision is they aim to create a new product every year so that their
customer’s would not be bored of the same products. Their mission is to create a
bakery that will provide best quality baked goods on site and also providing training
classes to those interested to learn cake and pastry baking. They wish to be a well
known pastry shop in Kelantan.
 INTRODUCTION

Entrepreneurship education seeks to provide student with the knowledge, skills

and motivation to encourage entrepreneur in a variety of settings. Variations of
entrepreneurship education are offered at all level of schooling from primary or
secondary schools and also in university programs. Entrepreneurship education
focused on the development of skills or attributed that enable the realization of
opportunity.

In this project, we make a case study on a company to know about their financial,
operation and management. We can learn about a company in real life, the nature of
the company and the challenge the company has to face. In this case study it helps us
to improve our knowledge in doing business plan later.

In conclusion, this project is good to the student as they study about the
businesses in their life. Also we can go and see the production of the company. It is a
good experience to us.
COMPANY INFORMATION

BACKGROUND

Smiling Orchid Bakery & Cake is located in 473, Jalan Dato Nik Mustapha
17500 Tanah Merah Kelantan. This bakery was established in 2003 and their factory
is established to produce the product at 2011. Before the establishment of the factory
they produce the product at the shop but due to the increasing demand they open up a
factory to manufacture the product.

Smiling Orchid Bakery & Cake is owned by Ronald Toolseram and Kenny So
Yu Cheng. This bakery is a partnership between two people. This bakery has around
20 staff including the salesgirl, driver, factory worker and manager. Some staff works
at the shop and some of them works in the factory. This business has been in
operation for 15 years.

The average sales for this bakery is RM 2000 per day which is RM 60 000 per
month. This is a stable company that can give opportunities to the local people to
work in their hometown. They also have promotion and receive many orders if there
is any special occasion such as Mother’s Day, Teacher’s Day, Valentine’s Day and
National Day . This will increase their sales for that month.

The factory that belongs to Smiling Orchid Bakery & Cake is located In Lot
6750, Jalan Jedok 17500, Tanah Merah Kelantan. This bakery also has other side
business that is Smiling Orchid Ingredients Trading located In Tanah Merah and Pasir
Mas Kelantan. This business supplies ingredient and tools for making cakes and
dessert. They also owned Smiling Orchid Coffee located in Tanah Merah Kelantan.
This café provides cakes and coffee for customer to eat at the café.
Business Name : Smiling Orchid Bakery & Cake

Business Address : 473, Jalan Dato Nik Mustapha 17500 Tanah

Merah, Kelantan

Factory Address : LOT 6750 Jalan Jedok 17500, Tanah Merah

Kelantan

Phone Number : 09-955 7052

Business Form : Bakery and Cake

Main Activities : Bakery and Cake

Date Started : 2003

Date of Registration : 2003

Registration Number : KT0031233-K

BUSINESS LICENSE
LOCATION
Vision
Aims to create a new product every year.

Mission
Create a bakery that will provide best quality baked goods on site.
Providing training classes to those interested to learn cake and pastry baking.

Objective
To be a well known pastry shop in Kelantan.
ORGANIZATIONAL STRUCTURE

Kenny

Intan

Sue Along Ain Dewi

Tan Kian Ju

Din

Mie Jenny Wati Mina

 CAKE DEPARTMENT

kenny

shop factory

ida linie

nora nurul

na
 BREAD DEPARTMENT

kenny

shop (ema) factory

wani nurul

kiyah milah
PRODUCT
BUSINESS STRATEGY

Smiling Orchid Bakery & Cake is partnership business created in 2003. The
business comprises of two partners. The partners are Ronald Toolseram and Kenny So
Yu Cheng. They first started their business in Tanah Merah where they established a
shoplots where they bakes their cakes and breads. As the demand keep increasing, the
owner opens up a separate factory to handle all the customers’ orders. This is to
ensure that all the orders can be fulfilled within the time frame given.

This business employs around 20 staffs to handle the progress of the business.
The employees includes the salesgirl, driver, factory worker and manager. Some of
them work at the shoplots and some at the factory.The bakery shops open daily from
8.00 a.m until 10.00 p.m. except for Friday from 9.30 a.m. until 12.00 p.m. The
factory opens daily from 8.00 a.m. until 5.00 p.m. except on Saturday which is a leave
day. The workers are to clock in their attendance to work by punch card.

The shops are located in the city of Tanah Merah where it is easier for customer
to spot their shops. The customers’ consist of variety of community such as
government workers, private institution workers, students and villagers.The company
promotes their company through social network such as Facebook to provide
information to customers about the product offers as well as to take order. By doing
this, the customer will stay updated for any promotion offered on any special days.
MARKETING STRATEGY

Marketing strategy consist of 4 main strategy mainly known as 4P’s . The 4P’s are
product, place, promotion and price. The 4P’s are to be used in promoting the
business to the market.

Product  Use high quality and fresh ingredients in

fulfilling customers’ wants.

 Produce variety of product such as roll

cakes , sponge cakes , icing cake , breads
and doughnuts.

 Packaging is user friendly so that

customer does not face any difficulty in
unwrapping the products.

 The company will collect feedback from

the customers’ to improve the company’s
performance.

Place and Distribution  The bakery are located in the hearts of

the city of Tanah Merah .

 Surrounded with other shops so easier to

be noticed by the customers.

 The factory located not too far away

from the shop lots to minimize any
distance travelled to transport the
products from factory to shop lots

Promotion  To approach customers’ in attracting

them to buy products by emphasizing the
 good traits of the product produced in
satisfying the customers’ needs and
wants.

 The medium used are:

a) Business cards

b) Signboards

c) Social media services

Price  The products are set at a lower price to

widen the circle of customers’

 The price are affordable for a great

quality products.
Promotion

Bill Items

1 Business cards

2 Social media network

3 Signboards
Competitors

Competitors are other business that sells similar or alternative products or services to
the same target market. There are one other competitors that offer the same types of
products who compete with the company that have their own strength and
weaknesses:

Bill Business Strength Weaknesses

1. Secret Recipe Have established brand name among Price offered is a

consumers higher compared to
Smiling Orchid
Bakery & Cake
OPERATIONAL STRATEGY

Operation Process

Bread Making Process

Ice Machine

Knead the dough

Roll the dough in the rolling

machine
Let the dough set int the
cooler

Bake in the oven

Bread cutter
 BUSINESS AND OPERATION

Business and operation hours

Smiling Orchid Bakery & Cake operates from 8.00 a.m. till 10.00 p.m on Saturday till
Thursday while 9.30 a.m. till 12.00 p.m. on Friday . The factory operates from 8.00
a.m. till 5.00 p.m. and one day off on Saturday .

Bakery operation hours:

Day Time

Saturday - Thursday 8.00 a.m. - 10.00 p.m.

Friday 9.30 a.m. - 12.00 p.m.

Factory operation hours:

Day Time

Sunday - Friday 8.00 a.m. - 5.00 p.m.

Lunch hour:

12.00 p.m. - 2.00 p.m.

Saturday Off day

FINANCIAL ACHIEVEMENT

The company receive capital contribution from the partners amounting to RM

100,000. The capital are to be used in purchasing equipment required to produce their
products and also for the utility bills such as water, electricity and rental payment of
shops. As the company keeps on receiving demands they expand their business by
opening a separate factory which is financed by loan received from Hong Leong Bank
amounting to RM 50,000.Revenue received in a day amounted to RM 2,000 and
estimated about RM 60,000 per month.

The company also open up a bakery supplies shop to supply ingredients to the
factory while selling to the public who is interested in baking. This is to minimize
external cost to pay the suppliers.The company also contribute SOCSO for their staff
according to the SOCSO Contribution Table & Rates that has been determined by the
Act. The company will pay 1.75% while the workers’ will contribute 0.5% of their
wages for the Employment Injury Insurance Scheme and the Invalidity Pension
Scheme.

This company also provide Employee Provident Fund for their employees. The
company contribute 8.33% while the employees contribute 3.67% which goes to PF
fund. Employee State Insurance Corporation (ESIC) is deducted on gross salary
which is 1.75% from the employee’s contribution and 4.75% from the employer’s
contribution.EPF is a retirement benefit scheme that’s available to all salaried
employees. EPF refer to a social security institution under the Ministry of Finance
Malaysia which managed a compulsory saving and retirement planning scheme for
legally employed workers in Malaysia.
 COMPANY ANALYSIS (S.W.O.T)

STRENGTHS WEAKNESS

 Old manufacturing facilities

 High traffic locations can make for
 Lack of cleanliness
easy profits.
 Poor marketing strategy
 The best operating strategy, the
bakery operate during weekend.
 Focus on quality
 Have factory due to high demand.

OPPORTUNITY THREAT

 Price wars between competitors

 Expand marketing strategy such as
 Many competitors at the area
promotion and delivery service
 Price fluctuation due to economic
(COD)
problem
 Improve facilities that gives
 The bakery operate at flood area
convenience to customers
 Open new branches at other city
 BUSINESS PROBLEMS

The main issues problems of Smiling Orchid Bakery & Cake are :

1. Competition in the industry

As the bakery located in the middle of town, they have other competitors that
operate in the same industry such as Secret Recipe Tanah Merah and other
bakery. They need to compete with other bakery about price of the product
and quality.
2. Fussy buyer

Customers have different purchasing habits depending on their taste and

preference of product. Social, cultural, psychological, and personal factor
influence the purchasing behavior of customers from a bakery. Sometime the
bakery did not fulfill all the customer’s demand. Hence, the workers need to
face customers behavior such as fussy buyer.
3. Price fluctuation on raw materials

Some of the raw materials used by bakeries are subject to extreme

fluctuations in cost on a yearly basis. These changes can severely affect the
bakery's profit margin unless the cost is passed on to consumers. If the cost
was passed on to customers, it would affect the product price so that the
customers tend to move to another bakery to find the lower price of product.
RECOMMENDATION AND IMPROVEMENT

1. Be a unique bakery

For the first solution is Smiling Orchid Bakery & Cake must be a
unique bakery. It is because, we cannot avoid the competition in the
business, we only can improve the business to be much better than
others. Therefore, we suggest Smiling Orchid Bakery & Cake to be an
unique bakery such as they can provide surprise delivery service,
create new flavor of cake, and so on.
2. Provide excellent services

Second solution is Smiling Orchid Bakery & Cake must provide

excellent service to the customers. We suggest them try to fulfill all
the demand from customers. They also need to be patient with the
customer and make customers suitable to come at their bakery so that
they can avoid fussy buyer and make loyal customers.
3. Make a contract with supplier

One way to minimize the risk on price fluctuation is Smiling Orchid

Bakery & Cake need to negotiate a contract for a fixed price on raw
materials with supplier such as eggs, cheese and butter. It would be
the best choice if the price cost of raw materials increase, Smiling
Orchid Bakery & Cake can maintain their price of product to
customers due to contract for fixed price that they signed with the
supplier.
 REFERENCES

1. Book

 Sarimah , H.A.S., Sharida , Z.S., & Cecilia , S.T.L (2016). Entrepreneurship

(4th edition).Shah Alam , Selangor Darul Ehsan: Oxford Fajar Sdn. Bhd.

2. Internet

 https://www.facebook.com/SmilingOrchidBakeryCake/

 https://www.google.com/maps/place/Smiling+Orchid+Bakery+%26+Cake/
@5.806447,102.1461438,17z/data=!4m5!3m4!1s0x31b69c89cf2e911d:0xe4
628063ba8d677f!8m2!3d5.806447!4d102.1483325

 https://www.slideshare.net/Haziqzikri97/ent300-case-studies-uitm

 https://www.profitableventure.com/bakery-business-plan-swot-analysis/

 https://www.google.com/search?q=kedai+kek+bandarbtanah+merah&oq=ke
dai+kek+bandarbtanah+merah&aqs=chrome..69i57.7071j0j7&sourceid=chro
me&ie=UTF-8

3. People

 Intan (2018, September 23). Case study about business plan and case study

 Nurul (2018,September 24). Case study about business plan and case study.

 Linie (2018,September 24).Case study about business plan and case study.
 APPENDICES

Bakery
Factory