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Introduction to Quality Management SQB4004 Assignment Case Study Topic: Old Town W ite Co!!

ee

"ecturer: #ro! $r% & airul Ba arein Mo d 'oor


Group members names: Gevana Rao a/l Maraiah V.Kalaaimohan "an#ha$umar a/l %oapalan 'hanash a/l Ravin(ran KJC1050037 KJC10 0!13 KJC10 0!0& KJC10 00&!

'able o) Con#en#s
"o 1. 2. 3. 4. 5. 6. &. !. %. 1-. 11. 12. 13. 14. 15. Con#en#s Company Profile Company History Milestones Industry Analysis Supply Chain Mappin "r ani#ation Stru$ture 'a$ilities and ()uipment 'ood * +e,era es Ser,i$e Personnel +est Pra$ti$es .he +i est Challen e Solutions Pro$ess 'lo/ for 0istri1ution A$ti,ities Con$lusions Appendi2 %a*e "o. 1 3 5 6 ! % 12 13 15 1& 1! 1% 222 23

Compan+ %ro)ile
"ldto/n is a re ional $af3 $hain operator and an esta1lished 1e,era es manufa$turer in Malaysia. As at 31 0e$ 2-114 the roup operates 1%6 $af3 outlets in the Asia re ion4 of /hi$h 1!3 in Malaysia4 ! in Sin apore4 4 in Indonesia4 and 1 in China. .hese $omprise of %6 fran$hised outlets4 &% fully5o/ned outlets4 1! partially5o/ned outlets and 3 li$ensed outlets. All of the roup6s $af3 outlets are supported 1y 3 $entralised food pro$essin $entres4 /hi$h lo$ated in Ipoh 728 and Su1an 7184 Malaysia. In 'inan$ial 9ear 2-114 the roup enerates 6!: and 32: of its re,enue from food and 1e,era es 7'*+8 se ment and fast mo,in $onsuma1le oods 7'MC;8 se ment respe$ti,ely.

Oldtown'scafe outlets by type as at FY11


*(

40( 4)(

+ully,owned #artially,owned +ranc ised "icensed

)(

Sources: Company data, Alliance Research

.he history of "ld .o/n <hite Coffee 1e ins /ith the in$orporation of <hite Cafe in the year 1%%% 1y initial $o5founders and (2e$uti,e 0ire$tors i.e. Mr. ;oh Chin Mun and Mr. .an Say 9ap. .he intention is simple and ,ery 1asi$ /hi$h stands for pro,idin )uality /hite $offee for Malaysians households and food ser,i$e industry. "ld.o/n is the proprietary o/ner of the spe$ial formulation of 35in51 /hite $offee 1lend4 /hi$h has 1een permeatin Malaysian households and food ser,i$e industry sin$e 1%%%. .he $ompany 1een operatin $losely for 13 years in /hi$h it ha,e e2perien$e in the $offee 1e,era e industry in /hi$h 1oth the $o5founders stri,e hard to the ro/th of "ld .o/n ;roup of Companies. .his /as made only possi1le 1y the help of "ld .o/n ;roup
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Mana in 0ire$tor i.e. Mr. =ee Sie/ Hen /ho played si nifi$ant role in implementin o,erall strate y4 and de,elopment of the roup. In the year 2--5 and 2--64 "ld .o/n ha,e esta1lished their su1sidiaries /hi$h is >no/n 1y the name of "ld .o/n ?opitiam4 "ld .o/n ?opitiam +utter/orth4 "ld .o/n ?opitiam ?uala =umpur4 "ld .o/n ?opitiam Cheras4 Conne$#one to fo$us on operatin $af3 outlets in different areas and states in Malaysia. In order to support the 1usiness operations more effi$iently4 "ld .o/n ha,e initiated the follo/in su1sidiaries as $entral food pro$essin $enters 1et/een 2--5 and 2--&@ (mperor6s ?it$hen $ommen$ed operations in 2--5A (s)uire Chef $ommen$ed operations in 2--&A 0ynasty6s Confe$tionery $ommen$ed operations in 2--&.

Compan+ ,is#or+
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<hite Coffee has su$$essfully $ommer$iali#ed their 1read and 1utter produ$t i.e. the instant 35in51 $offee mi2 under the B"=0."<C6 1rand name for the retail se$tor in the year 1%%%. As per date 31 "$to1er 2--%4 the "=0."<C 35in51 instant $offee mi2 /as sold in appro2imately 1434! retails nation/ide in Malaysia4 appro2imately 55- retail outlets in Sin apore and appro2imately 241-- retail outlets in Hon ?on . <hile in 2---4 <hite Coffee $ommen$ed the first e2port of the B"=0."<C6 1rand of 35in5 1 instant $offee mi2 to Sin apore. Ce2t in 2--14 "ld .o/n su1sidiary /hi$h is >no/n as <hite Caf3 Mar>etin $ommen$ed operations as the mar>etin arm for the roup6s 1e,era es. 0urin this time also4 the roup ha,e seen mass e2pansion of their different ,ariations of $offee mi2 and also ,entured to o,erseas mar>et parti$ularly Hon ?on in the e2port of the famed instant $offee mi2. In 2--24 <hite Caf3 mana ed to o1tain a Halal $ertifi$ation from the Islami$ Deli ious 0epartment of Pera> for the ;roup6s 1e,era es. All this /ere 1ein done in order to produ$e the 1e,era es a$$ordin to Islami$ la/. Soon4 they also mana ed to e2pand their nation/ide retail distri1ution of 35in51 instant $offee mi2 to $o,er (ast and <est Malaysia throu h hypermar>ets and supermar>ets. In 2--34 the $ompany su$$essfully formulated their ori inal 1lend of 35in51 instant mil> tea for the retail mar>et under the B"=0."<C6 1rand name. +esides4 they also in$orporated ;on a 'ood and $ommen$ed operations in 2--4 manufa$turin the roasted $offee po/der for the food ser,i$e industry usin their ;roup6s proprietary 1ean roastin pro$ess. MaEor $han es too> pla$e in the year 2--5 as <hite Caf3 offi$ially open a $hain of $afe outlets 1ased on the traditional Ipoh $offee shop settin and atmosphere under the B"=0 ."<C <HI.( C"''((6 1rand name. .his /or>s as part of roup6s strate y of $apitalisin and reinfor$in the B"=0 ."<C <HI.( C"''((6 1rand in Malaysian food industry. .he same year also /itness that ?opitiam Asia Pa$ifi$ $ommen$ed operations in the li$ensin 4 supply of food4 1e,era es and other items and pro,ision of mana ement ser,i$es to B"=0 ."<C <HI.( C"''((6 $af3 outlets.

+esides that4 ;on

a 'ood6s 1usiness a$ti,ity /as e2panded to $o,er the pro$urement of

food items for B"=0 ."<C <HI.( C"''((6 $af3 outlets. It also su$$essfully se$ured the
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HA=A= $ertifi$ation from the Islami$ Deli ious 0epartment of Pera> for its produ$tion of roasted $offee po/der. 'urthermore4 in the same year4 <hite Caf3 also o1tained a HCCAP $ertifi$ation from +M .DA0A Certifi$ation =td for the pro$essin and manufa$turin of 1e,era e produ$ts. In year 2--64 the $ompany e2panded their e2port mar>ets to Fapan and China. It /as also durin this time that they in$orporated 0ynasty6s ?it$hen as a distri1ution $entre /hi$h $omforta1ly $ommen$ed operations in 2--&. At the same time4 the in$orporation of "ldto/n +erhad too> pla$e /ith the moti,e of fo$usin on in,estment holdin and pro,ision of mana ement ser,i$es in a$$ordan$e to its listin on the Main Mar>et of +ursa Se$urities. Plus4 they also started e2portin to Asian $ountries su$h as .hailand and Philippines. In 2--&4 the in$orporation of "ld.o/n Sin apore too> pla$e to pro,ide mana ement ser,i$es4 supply of food and 1e,era es items to $af3 outlets in Sin apore. <hile in 2--!4 ".? Sin apore started operations /ith the laun$h of the roup6s first "=0 ."<C <HI.( C"''(( $af3 outlet in Sin apore. .his ama#in ly $ontinues the roup6s initiati,es as their su1sidiaries4 0ynasty Confe$tionary and (s)uire Chef o1tained HA=A= $ertifi$ation from the Islami$ Deli ious 0epartment of Pera> for the pro$essin of ,arious foods. .he other food pro$essin $entre4 (mperor6s ?it$hen also mana ed to se$ured HA=A= $ertifi$ation from the I'DC Asia. Ama#in ly4 /ithin the same year4 the $ompany e2panded their produ$t line to in$lude 35in51 instant $offee mi2 /ith su ar $ane. In 2--%4 ;on a 'ood o1tained a HACCP $ertifi$ation from +M .DA0A Certifi$ation =td

for the produ$tion of roasted $offee po/der. In year 2-1-4 "=0."<C Sin apore started operation of $af3 outlets. Plus4 (s)uire Chef o1tained a HACCP $ertifi$ation and ;MP $ertifi$ation for the preparation of food seasonin s4 $ondiments for restaurant outlets from Moody International Certifi$ation 7Malaysia8 Sdn. +hd. 'urthermore4 ;on a 'ood o1tained a ;MP $ertifi$ation from 'ood Safety and Guality 0i,ision under the 0epartment of Pu1li$ Health of the Ministry of Health Malaysia for our roasted round $offee mi2ture.

Miles#ones
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"ldto/n ;roup has /on numerous a/ards throu h their su1sidiaries and su1stantial shareholder4 "ld .o/n International. .hese a/ards are listed 1elo/@

-n(us#r+ .nal+sis

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Malaysian '*+ industry is a

ro/in

1ut $ompetiti,e industry. A$$ordin

to 2-1-

Population and Housin Census of Malaysia 7Census 2-1-84 Malaysia has a youn population /ith a median a e of 2&.6 years or 5&.2: of the population is youn er than 3- years old. .his so5$alled ;eneration 9 7;en598 population is $onsidered the fastest ro/in se ment of the $ountry /or>for$e and the maEority of them are deemed to ha,e a hi h propensity to spend4 in$ludin '*+ e2penditure as $ompared to pre,ious enerations. As su$h4 /e 1elie,e the '*+ industry $ould 1e one of the 1i est 1enefi$iaries of the $ountry6s youn population. "n the other hand4 /e ,ie/ the 1ar ainin po/er of suppliers in the '*+ industry as moderate due to the tradin nature of its $ommoditi#ed ra/ materials su$h as flour4 $offee 1ean and su ar4 /hi$h depend on lo1al supply and demand dynami$s. "ldto/n sour$es !-: of its $offee re)uirement from o,erseas4 su$h as +ra#il and Indonesia on a 6512 months $ontra$t 1asis. .o ether /ith its typi$al in,entory le,el of 65% months4 this ena1les the roup to plan its $osts pass throu h more effi$iently. Coffee industry is a ro/in industry in Asia. .he primary su1stitute produ$ts posin a potential threat to $offee are $affeinated soft drin>s produ$ed 1y Pepsi and Co$a5Cola. Ho/e,er4 there e2ist si nifi$ant differen$e in tastes4 hen$e4 $onsumers /ere unli>ely to dire$tly su1stitute $offee for $affeinated soft drin>s or ,i$e ,ersa. As a result4 it a$tually presented the industry /ith little threat of su1stitution. Presently4 Malaysia has a1out 14 $af3 $hain operators /ith the top fi,e ma>in up &!: of the total num1er of $af3 outlets in the $ountry. <hile on the 'ast Mo,in Consumer ;oods 7'CM;8 se ment4 "ldto/n is the third lar est $offee retailer /ith %.5: mar>et share in 2-11. <ithin the /hite $offee se ment4 "ldto/n is the $lear mar>et leader /ith 42.3: mar>et share4 leadin the se$ond and third lar est player4 Super ;roup and Che> Hup /ho are estimated to ha,e a1out 2-: and less than 1-: mar>et share respe$ti,ely4 1ased on mana ement uidan$e. As for the Hon ?on and Sin apore $offee mi2 mar>ets4 "ldto/n ran>ed is num1er 2 /ith in$reasin mar>et share o,er the past 3 years4 $hallen in the mar>et leader4 Ces$afe /hi$h has a1out 2%: mar>et share in Hon ?on . ;oin for/ard4 /e e2pe$t the ri,alry $ompetition /ithin the $af3H$offee industry to in$rease as /e anti$ipate the maEor players stri,e to $apture lar er mar>et share. Ca)/ 0hain opera#ors in Mala+sia
# no of outlets % 1.#age

Secret Recipe Old Town !ite "offee Starbuc's "offee Subway Sandwic!es )appa Ric! "offee ,ean - Tea .eaf Station 1 .eisure "af/ 0aila1 2opitia1 San Francisco "offee 3o1e "af/ 4loria 5ean's "offee 2illiney 2opitia1 2luan6 Station 4eor6etown !ite "offee Total

212 1#$ 12( &( *$ (2 41 2+ 2$ 1* 1$ 1% # + #+(

24.2% 2%.&% 14.$% 1%.&% +.2% (.&% 4.+% $.1% 2.*% 1.#% 1.(% 1.1% %.&% %.#% 1%%.%%

Sources: Company Data 1l(#o2ns 3MCG mar$e# share brea$(o2n b+ 0oun#r+

Sources: Company Data

4uppl+ Chain Mappin*


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Inherently4 "ldto/n $afes ha,e 1een strate i$ally pla$ed themsel,es as retailer position in supply $hain mappin of '*+ industry. Da/ materials su$h as roasted $offee 1eans4 $urry paste and sam1al are internally produ$ed and pro$essed for the $onsumption of "ldto/n $af3 outlets and end users. <hile4 other supplier mainly pro,ides $ar1onat drin>s4 i$e5$reams and yo urt that are ,ital for "ldto/n si nature dishes and 1e,era es.

Da/ Materials
Supplier

Detailer
Oldtown Cafe

'inished produ$t
End Customer

Main 4uppliers 1. ;on a 'ood Sdn. +hd.7fully Io/ned su1sidiary8 Supplies dry * fro#en $offee 1eans4 $urry paste and sam1al produ$ts. 2. Cestle Produ$ts Sdn. +hd. Supplies i$e5$ream and yo urt produ$ts. 3. Permanis Sandilands Sdn. +hd. Supplies $ar1onat drin>s

Note: The main suppliers listed above are only pertaining to Oldtown Alpha Angle branch only

1r*ani5a#ion 4#ru0#ure
3.#age

6oar( o) (ire0#ors "=0."<C has a stron and e2perien$ed mana ement team. .he roup pra$ti$es ood $orporate o,ernan$e 1y splittin the roles of the $hairman of the 1oard and mana in dire$tor. .he 1oard $onsists of ei ht mem1ers4 of /hi$h three are independent dire$tors. 18 7a#u$ 7r .hme( 'asir bin 8ope %ihie9 6!ndependent non"e#ecutive chairman, since $%%& :uali)i0a#ion ; +a$helor in A ri$ulture S$ien$e 7Jni,ersity Malaya84 MS$ in Seed .e$hnolo y 7Jni,ersity of (din1ur h4 S$otland84 Ph0 in S$ien$e and .e$hnolo y Poli$y 7Jni,ersity of Man$hester4 J?8 <=perien0e ; He /as the C(" of Malaysia Industry5;o,ernment ;roup for hi h te$hnolo y from 1%%352--!. He presently ser,es as the Chairman of Ca aya ;lo1al +hd and Strand Aerospa$e Malaysia Sdn +hd. 2> 8ee 4ie2 ,en*9 45 'roup (anaging Director, since $%%) :uali)i0a#ion ; Completion of se$ondary edu$ation <=perien0e ; He had a$$umulated more than 2- years of e2perien$e in the manufa$turin and retailin industry /ith % years in the $offee 1e,era e industry. 38 Goh Chin Mun9 4*#ecutive Director, since $%%) :uali)i0a#ion ; Completion of se$ondary edu$ation <=perien0e ; He started his $areer in 1%!3 /ith Cam Heon Coffee Shop in Ipoh. Su1se)uently4 he $o5founded <hite Caf3 7<C8 /here he /as appointed the Produ$t Desear$h and 0e,elopment 0ire$tor and /as then responsi1le for the formulation of the 1lend of /hite $offee that is produ$ed 1y the roup.

48 'an 4a+ ?ap9 36 *#ecutive Director, since $%%&


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:uali)i0a#ion ; 0iploma in Hotel +usiness Mana ement 7Syuen Hotel and Caterin Mana ement Institute8 <=perien0e ; He $o5founded and esta1lished <C in 1%%%. 'rom 2--5 to 2--%4 he /as appointed the +usiness 0e,elopment 0ire$tor of ?opitiam Asia Pa$ifi$ as is responsi1le for the $af3 outlet operation durin that period. 58 Claren0e 74ilva ./8 8eon 74ilva9 5*#ecutive Director + COO o, -+. segment, since $%%& :uali)i0a#ion ; +a$helor in +usiness Administration 7California .e$hni$al Colle e4 JS8 <=perien0e ; He started his $areer in 1%!3 /ith ?entu$>y 'ried Chi$>en as a mana ement trainee. In 1%!%4 he left to ta>e up employment /ith Carl6s Fr. Asia 0e,elopment Corporation and /as e,entually promoted to the position of ;eneral Mana er of the 1rand in .hailand. In 2--34 he Eoined 9oshinoya 'ood System as the Chief "peratin "ffi$er 7C""8. Claren$e Eoined "ldto/n in 2--% as the C"" of "ldto/n6s '*+ se ment. 68 Chuah 4eon* Men*9 36 *#ecutive Director and COO o, -(C' segment, since $%%& :uali)i0a#ion ; ++us. maEorin in Mar>etin 7Jni,ersity of .asmania4 Australia84

Certified Mar>eter 7Chartered Institute of Mar>etin 4 J?8 <=perien0e ; He Eoined <CM as a Mar>etin Mana er in 1%%% and /as e,entually promoted to ;roup Mar>etin Mana er in 2--&. He $urrently o,ersees the 1usiness operations of the roup6s 'MC; 1usiness. &8 Chin 8ai ?on*9 43 Non"independent non"e#ecutive director, since $%%& :uali)i0a#ion ; 0iploma in Cost A$$ountin Industry8 <=perien0e ; In 1%%!4 she parti$ipated as an in,estor in the fashion retailin 1usiness 1efore Eoinin <CM as an administration offi$er from 2--3 to Fuly 2--%. !8 Mar$ @in* Kon*9 52 !ndependent non"e#ecutive director, since $%%&
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7=ondon Cham1er of Commer$e and

:uali)i0a#ion ; CA /ith Malaysian Institute of Certified Pu1li$ A$$ountant 7MICPA8 <=perien0e ; He /as eneral mana er of Corporate 'inan$e department in Ara15

Malaysian Mer$hant +an> +hd. He left the $ompany to Eoin =+ Aluminium +hd in 1%%& /here he is $urrently the C(". %8 7r. 8eon* Chi$ @en*9 4! !ndependent non"e#ecutive director, since $%%& :uali)i0a#ion ; +S$ in Chemi$al (n ineerin 7<est Kir inia Jni,ersity4 JS84 Ph0 in Chemi$al (n ineerin 7Jni,ersity of Massa$husetts4 JS8 <=perien0e ; He Eoined Day$hem Corporation Menlo Par> from 1%!% to 1%%6. His last position at Day$hem /as .e$hni$al 0ire$tor. He is $urrently the C(" of e5=o$> Corporation Sdn +hd. Note: Chin /ai 0ong is the sister"in"law o, /ee Siew 1eng

3a0ili#ies an( <Auipmen#


.he interior d3$or of "=0 ."<C <HI.( C"''(( ha,e 1een ama#in arran ed to suit the perfe$tion of $reatin memories of /al>in into a time $apsule. Inside the $af34 $ustomers are /el$omed /ith a modern am1ien$e $omprisin of old 1la$> and /hite pi$tures han in on
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the /all sho/in history of the $af34 1la$> /ood par)uet floorin 4 and /alls that uni)uely de$orated. .a1les are made from mar1les so that $ustomers $an ha,e a sense of lu2ury feelin to their dinin e2perien$e. Plus4 the $hairs offered are in t/o forms i.e. a $lassy $hair /ith a $om1ination of mar1le and 1la$> /ood and another in the form of 1en$h that is $omfy and rela2in . +asi$ally4 these ta1les and $hairs $omplimented the /hole traditional and ultra5 modern loo> fla/lessly.

.he e)uipment used for $offee ma>in and 1eans roastin are all deri,ed from o,erseas so that $ustomer /ill et unadulterated feelin of enEoyin their drin>s. .his is also to mat$h the standard set 1y the fran$hise in order to ser,e people effi$iently at all le,els. Si nifi$antly4 this parti$ular "=0 ."<C <HI.( C"''(( outlet is lo$ated at 1 st floor of Fus$o Alpha An le Shoppin Center4 /hi$h is in <an sa MaEu. .hus4 in order to $ater to lot of $ustomers4 a free <I'I ser,i$es is 1ein pro,ided so that people $an surf the net and enEoy their food at the same time.

3oo( an( 6evera*es


All the $afe outlets are supported 1y three 738 $entralised food pro$essin $entres operated 1y "=0."<C su1sidiaries4 0ynasty Confe$tionery4 (s)uire Chef and (mperor6s ?it$hen. .he $entralised food pro$essin $entres are responsi1le for the pro$essin of all the in redients
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in$ludin the freshly 1a>ed si nature toasts that are ser,ed at the $afe outlets. .hey ha,e a menu that refle$ts the $entral theme /ith a fo$us on ser,in lo$al fare that is traditionally a,aila1le at $offee shops. .hese in$lude half 1oiled e s4 spe$ialty ri$e4 homemade toasted 1read and 1uns4 noodles4 sand/i$hes and many others. Some of their si nature food that is offered at the $afe outlets in$ludes the follo/in @5 5 ?aya and +utter .oast 70ou1le8A 5 "me a Soft +oiled ( sA 5 "=0."<C Ipoh Chi$>en Hor 'unA 5 SJPD(M( Casi =ema>A 5 "=0."<C Curry MeeA and 5 "=0."<C Dendan Chi$>en Di$eA

. 2aya and .utter Toast 3Double4 Omega So,t .oiled *ggs

S56R*(* Nasi /ema7

O/DTO8N !poh Chic7en 1or -un

.he $offee and tea 1e,era es offered at our $afe outlets are spe$ially formulated and manufa$tured for our B"=0."<C <HI.( C"''((6 $afe outlets /hi$h differ from our ran e of retail pa$> instant $offee mi2 and roasted $offee po/der. Some of our si nature hot and $old $offee 1e,era es offered at our $afe outlets in$lude the follo/in @5 5 "=0."<C <hite Coffee 7Hot8A
-/ . # a g e

5 "=0."<C <hite Coffee 7Cold8A 5 "=0."<C6s CAC 9AC; I " 7Hot8A 5 "=0."<C6s CAC 9AC; I " 7Cold8 5 "=0."<C <hite Coffee 'ree#eA 5 "=0."<C Li Mut Mil> .ea 7Hot8A 5 "=0."<C Li Mut Mil> .ea 7Cold8A and 5 "=0."<C Coffee =a,a.

O/DTO8N 8hite Co,,ee 31ot4 and O/DTO8N 8hite Co,,ee 3Cold4

O/DTO8N9s Nan 0ang " O 31ot4 and O/DTO8N9s Nan 0ang " O 3Cold4

O/DTO8N 8hite Co,,ee -ree:e

4ervi0e %ersonnel
.here /ere total of nine employees in the $af3 outlet4 in$ludin the Super,isor4 Ms. Catasya. ;enerally4 the restaurant manual indi$ates that there is 3 di,ision of hierar$hy le,el /hen it $omes to their or ani#ation stru$ture. It $an 1e e2plained as follo/s@ +ar Cre/
-4 . # a g e

?it$hen Cre/ Ser,i$e Cre/ ;enerally4 the 1ar $re/ are desi ned to deli,er $ustomer ser,i$e in the form of ser,in and presentin 1e,era es )ui$>ly and effi$iently. .hey also ha,e to assist in >eepin the $afe4 front5of5house and toilets $lean and tidy4 at all times 1esides >eepin up to date /ith $urrent promotions and ne/ produ$ts. .he 1ar $re/ in this outlet are made of 2 people of /hi$h one 1ein lo$al and another is a forei ner. As for the >it$hen $re/4 the or ani#ation appoints 3 people 72 lo$al and 1 forei ner from Cepal8. .heir duties are mainly on preparin 4 $oo>in and presentin food )ui$>ly and effi$iently4 meetin "=0."<C standards. .hey also need to assist in >eepin the >it$hen $lean4 hy ieni$ and tidy at all times. Ceedless to say4 >it$hen $re/s si nifi$antly ha,e to /or> safely around >it$hen e)uipment and report any maintenan$e issues to the mana er. +asi$ally4 ser,i$e $re/ Eo1 des$riptions is to ta>es $ustomer orders for drin>s4 appeti#ers4 entrees and dessert items and deli,ers all re)uested items to the ta1le and ensures restaurant patrons are $omforta1le and ta>en $are of throu hout the meal. .he $re/ also deli,ers the $he$> at the $lose of the meal and may ta>e the $ustomerMs payment in the form of $ash or $redit $ard. In this outlet4 only 1 ser,i$e $re/ is re$ruited /hi$h ori ins from Cepal as the $af3 is small and re)uires less people to maintain it. In order to fa$ilitate Ms. Catasya in her performan$e of /or>4 there are 2 Assistant Super,isor a,aila1le in this outlet. .hey are 1ein one lo$al and another forei ner from Myanmar. "=0."<C mana ement enerally re$ruits forei ners from only 2 $ountries4 parti$ularly 1ein Cepal and Myanmar. .he employees that /or> in all 3 di,ision of 1ar $re/4 >it$hen $re/ and ser,i$e $re/ are e2tensi,ely trained for full 6 months 1efore 1ein stationed nation/ide. "=0."<C ha,e strate i$ally lo$ated their trainin $enter at t/o pla$es /hi$h is in

"=0."<C Su1an and "=0."<C Sri Dampai. .he employees are 1ein trained on ho/ to properly $ommuni$ate and $on,erse in (n lish lan ua e and +ahasa Melayu in order to deal /ith ta>in orders4 reetin $ustomers and others. Plus4 the /or>ers are also 1ein roomed on ho/ to prepare food and 1e,era es a$$ordin to "=0."<C standards so that the distin uished )uality $an al/ays 1e maintained e,ery time.
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.he Destaurant Manual hierar$hy in Alpha An le Shoppin Center 1ran$h $an 1e sho/ as 1elo/@ Restaurant 7anual

Orientation

"rew

"rew .eader

8ssistant Super9is or

Super9is or

Bar Crew

Kitchen Crew

Service Crew

6es# %ra0#i0es
"ldto/n ha,e enerally e2$elled in their indi,idual e2perimentation of 1est pra$ti$es in '*+ industry lo$ally. .his is e,ident in terms of adheren$e to their standard operatin pro$edure 7S"P8. A$$ordin to Ms. Catasya4 ea$h "ldto/n outlet /ill send their Assistant Super,isors and Super,isor to attend +asi$ "peration Mana ement .rainin 7+"M.8. .he purpose of this trainin is to familiari#e the upper mana ement le,el /ith re$ent updates4 "ldto/n
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distin uished '*+ preparation standards4 $ustomer ethi$s4 re ulations and promotions. =ater4 this upper mana ement le,el people4 need to esta1lish these standards amon the employees in order to pre,ent mista>es and errors. In addition to this pro$edure4 $ertain Binspe$tors6 are assi ned from "ldto/n head)uarters in order to $ondu$t audit as per food and the outlet operation system. .hese are ,ital in order to ensure $leanliness and hy ieni$ foods are properly maintained from time5to5time. Internally4 this parti$ular audit is 1ein 1randed as ;Rose Audit9 Similarly4 another 1est pra$ti$e of "ldto/n is to use their o/n $offee /hen it $omes to satisfyin the $ustomer needs and /ants. Ceedless to say4 $ustomers are 1ein treated /ith "ld .o/n <hite Coffee /hi$h is a 1lended of 3 types of $offee 1eans i.e. Do1usta4 Ara1i$a and =i1eri$a4 of /hi$h &-: of the $offee 1ean used is Do1usta. .his instant $offee mi2 is spe$ial as it is only used in outlet and is not a,aila1le at departmental store. .he ,alidations of these 1est pra$ti$es are $onstantly monitored 1y "ldto/n 1y propa ation of s$hedule preparation and $he$>in on /ee>ly inter,al 1asis. De ular in,entory $he$>in are also monitored in order to pre,ent /asta es and to sa,e or ani#ation resour$es.

'he 6i**es# Challen*e


.he main pro1lem that the "ldto/n Alpha An le 1ran$h is fa$in ori inated from issues re ardin $ustomers. <hen it $omes to matters $onsistin of late orders and foods are not tasty4 the $ustomers $an 1e seriously pushy and needy. Jnder normal $ir$umstan$es4 these 1eha,iors 1y the $ustomers are perfe$tly normal as they are payin $ustomers and deser,ed to 1e treated /ith respe$t and honor. Ho/e,er4 at times4 the $ustomers $an 1e rumpy naturally
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and o,errea$ted to the sli htest mista>e or error /ithout 1ein understandin on the /or>ers.

$ompassionate and

.his pro1lem $an 1e hi hli hted throu h the portrayal of the follo/in 1usiness model@ %or#ers Value Chain .nal+sis 3rame2or$

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Inbound logistics (Suppliers, Warehousing , and Inventory Control)

Inbound logistics (Suppliers, Warehousing , and Inventory Control)

Custom er dealing issues (errant customers, late delivery, and tasteless food)

Outbound logistics (Distribution, order fulfillment)

Mar eting ! sales ("dvertiseme nts and promotions, pricing, loyalty programs)

#rand$#rand Image$%eco gnition (Customer relations, customer feedbac )

Company Infrastructure (Administrative management, planning management, accounting. etc) Human Resource Management (Labor, personal s ills training and development employee benefits. etc) !ec"nology #evelopment (R$#, process automation, design, etc)

%rocurement (Ra& materials, mac"ines and e'uipment, etc.)

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4olu#ions
;enerally4 the solutions relatin to $ustomer issues are sol,ed 1y usin personal dis$retion and lo i$al thin>in . .his is done 1y follo/in a list of steps hi hli hted 1y "ldto/n mana ement parti$ularly in dealin /ith errant $ustomers. Mu$h of this uideline /ill 1e used 1y Assistant Super,isors4 Super,isors4 and Mana ers to pa$ify $ustomers that are not happy /ith $urrent ser,i$es that arise out of /ron 1illin 4 late orders and re$ei,in tasteless food and 1e,era es. +elo/ are the lists of steps that "ldto/n employees ha,e to adhere /hen it $omes to matter of dealin /ith $ustomers@ Steps@ 1. =isten to $ustomer N Customer needs to maintain an eye $onta$t re ularly in order to sho/ respe$t
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N =isten attenti,ely N 0o not interrupt $ustomer /hen they are spea>in N (mpathi#e 2. A$>no/led e N Con,ey pro1lems to Mana ers a1out full

information of the situation 3. Settle the pro1lem N Settle the pro1lems immediately

N If una1le to settle4 et superior to help out 4. .han> the $ustomerN .han> the $ustomer for their food and 1e,era e N Assure them this thin ne,er happen in future N In,ite the $ustomer to return a ain As for the in$iden$e of prepared food 1ein tasteless or spoiled4 $ustomers are 1ein as "ldto/n /ants to maintain des$ri1ed earlier. i,en an

option of orderin different food at the $ost of the ori inal dish. .his is re ardless of the pri$e ood relationship /ith $onsumer at all times. Similarly4 another solution also 1ein pra$ti$ed in the form of /ai,er of 1ills for the same s$enario

%ro0ess 3lo2 3or 7is#ribu#ion .0#ivi#ies


"af/ Outlets :;ort!< "af/ Outlets :"entral< "af/ Outlets :Sout!< "af/ Outlets :Sin6apor e<

are!ouse :5o!or ,a!ru< are!ouse :=po!< are!ouse :,utterwort !< are!ouse :Suban6 5aya< are!ouse s :>ast 7alaysia<

are!ouse =ndonesia

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Con!ectionary and Ba4ery Ipo 5

+ood #rocessing Center 6Ipo 5

+ood #rocessing Centre 6Su7ang 8aya5

"af/ Outlets :=ndonesi a<

"af/ Outlets :>ast 7alaysia<

.he ;roup $urrently has t/o food pro$essin $entres in Ipoh and one in Su1an Faya4 Selan or. "ldto/n pro$essed food is distri1uted 1y their o/n lo isti$s to their /arehouses and outlets in Malaysia4 Sin apore4 and third party /arehouses in (ast Malaysia and Indonesia. Pro$essed food from pro$essin $entre in Ipoh is distri1uted to their /arehouses in

+utter/orth4 Ipoh and Su1an Faya. Pro$essed food from their pro$essin $entre in Su1an Faya is distri1uted to the /arehouses lo$ated in Su1an Faya4 Ipoh and +utter/orth +a>ed oods from the $onfe$tionary and 1a>ery $entre in Ipoh are distri1uted dire$tly to "ldto/n $af3 outlets in the northern re ion and also to /arehouse in Su1an Faya. 'rom the /arehouses in +utter/orth and Ipoh4 the pro$essed food is distri1uted to "ldto/n $af3 in the northern re ion. 'rom "ldto/n /arehouse in Su1an Faya4 1a>ed oods and pro$essed food are distri1uted to lo$al $af3 outlets in the $entral re ion and /arehouse in Fohor +ahru. <hile4 pro$essed food are also distri1uted to third party /arehouses in (ast Malaysia and Indonesia. 'rom /arehouses in Fohor +ahru4 1a>ed oods and pro$essed food are then distri1uted to the $af3 outlets in the southern re ion and Sin apore. 'rom the /arehouses in (ast Malaysia4 pro$essed food is distri1uted to the $af3 outlets in (ast Malaysia. 'rom the /arehouse in Indonesia4 pro$essed food is distri1uted to "ldto/n $af3 outlets lo$ated in Indonesia.

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Con0lusions
Impro,ement in terms of $onstant $han es is the >ey for "=0 ."<C <HI.( C"''(( $ontinuous su$$ess. +y /or>in and tin>erin /ith e2istin 1usiness model4 pra$ti$es and strate ies /ill ultimately i,e them the $ompetiti,e ad,anta e to stay ahead from the rest of the $ompetitors. Ceedless to say4 the $ompany6s le a$y remained uns$athed for the last de$ade due to their stri,in effort in mana in $ustomer6s needs and /ants effe$ti,ely. Si nifi$antly4 "ldto/n ha,e esta1lished their 1est pra$ti$es in terms of $offee ma>in on par /ith other '*+ hea,y/ei hts su$h as Star+u$>s and 0ome. .his is only a$hie,a1le 1y their fluidity in internal $offee ma>in pro$ess and sele$tion pro$ess of hi hest rade $offee 1eans in order to ser,e their $ustomers. Inte rated 1usiness also ena1les "ldto/n to $ontrol most aspe$ts of the ,alue5added $hain to $ontrol produ$t )uality and ser,i$e pro,ision4 as /ell as to retain as mu$h of the profit as possi1le /ithin the ;roup. Desponses to $ustomer6s feed1a$> in terms of ne ati,e $omplaints pertainin to )uality of ser,i$e4 )uality produ$t and fa$ilities and en,ironment ha,e 1een $arefully s$rutini#ed.
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Pro ressi,ely4 it helps to 1uild a ood reputation amon food $riti$s and industry e2perts so that any errors are immediately addressed /ithout pro$rastination. +y stri>in a 1alan$e in this t/o $ore areas4 "ldto/n $an loo> up to a ressi,e e2pansion plan /ith $onfiden$e and ,alor that mu$h needed for in order to 1e a lo1al player.

.ppen(i=
.he prin$ipal 1usiness a$ti,ities of "ldto/n ;roup are depi$ted as follo/@
Business Acti9ities o! Oldtown :roup

Operation o! Ca!; C ain

Manu!acturing o! Co!!ee and Ot er Be9erages Instant co!!ee,mi<

Mar4eting and Sales o! Co!!ee and Ot er Be9erages Instant co!!ee,mi< ?

Own Ca!; Outlets

#artially owned outlets

=oasted co!!ee powder

=oasted co!!ee powder *4 . # a g e

+ranc ised and licensed outlets

Instant mil4 tea mi<

Instant mil4 tea mi<

+ood #rocessing

Instant c ocolate mi<

Instant c ocolate mi<

=T$ co!!ee >

Notes:
? > Also includes instant bottle coffee which represented a very small proportion of Oldtown total revenue FYE 2010 RT !offee started in 200"

@hi#e 0o))ee ba0$*roun( <hite Coffee ori inated from Ipoh4 Malaysia and is >no/n for its ro1ust aroma and its $reamier and ri$her taste. It is 1asi$ally produ$ed from the same spe$ies of $offee 1eans that 1la$> $offee used4 i.e. Do1usta or Ara1i$a $offee. Ho/e,er4 "ld .o/n <hite Coffee is a 1lended of 3 types of $offee 1eans i.e. Do1usta4 Ara1i$a and =i1eri$a4 of /hi$h &-: of the $offee 1ean used is Do1usta. .he main differen$e 1et/een /hite and 1la$> $offee is 1asi$ally the /ay the $offee 1eans are roasted. .o produ$e a traditional B1la$>6 $offee4 $offee 1eans are roasted /ith su ar and mar arine. <hile B/hite6 $offee 1eans are only roasted /ith mar arine. <ithout su ar4 the roast is not as dar> and hen$e termed as B/hite6 $offee. Co))ee beans in#ro(u0#ion .rabi0a $offee is a pri$ier and more superior spe$ie as $ompared to Do1usta $offee. It produ$es the ri$h fla,our and 1ody found in a ood $up of $offee. Ara1i$a $offee is diffi$ult to ro/4 and prone to disease. Hen$e4 re)uires more hand $ulti,ation and result in lo/er yield har,ests per a$re.
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Robus#a spe$ie is a hardy4 hi h yieldin plant /hi$h is resistant to numerous pests. Most of the lar e $offee $ompanies in the /orld /ill 1lend a small amount of Ara1i$a $offee 1eans /ith a lar er portion of Do1usta $offee 1eans. 8iberi0a is a spe$ie of $offee that ori inated from =i1eria4 <est Afri$a sin$e 1!43. .oday4 most of the li1eri$a $offee trees are ro/n in Malaysia4 Indonesia and Philippines /ith some in <est Afri$a4 and India. Ho/e,er4 only nearly 1: of =i1eri$a $offee is traded in $offee tradin around the /orld. .his 1eautiful lon 5li,in plant is stron 4 lush4 /ith fruits and seeds proportion dou1le to those of Ara1i$a and more immune to parasites atta$>s.

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