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)

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 strategy on how to market their products in terms of branding and promotion to increase their competitiveness in getting
Done By : Mohd Shafie Osman (GP 01615) 2

JANNAH JAYA ENTERPRISE Restaurant and Caterer 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)

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)

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.

Done By : Mohd Shafie Osman (GP 01615)

JANNAH JAYA ENTERPRISE Restaurant and Caterer 2.0 JANNAH JAYA ENTERPRISE 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 companys 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 companys 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
Done By : Mohd Shafie Osman (GP 01615)

JANNAH JAYA ENTERPRISE Restaurant and Caterer 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 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.
Done By : Mohd Shafie Osman (GP 01615)

JANNAH JAYA ENTERPRISE Restaurant and Caterer 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 by En. Adnans 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

Done By : Mohd Shafie Osman (GP 01615)

JANNAH JAYA ENTERPRISE Restaurant and Caterer To maintain the recipe of Melaka heritage 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

Done By : Mohd Shafie Osman (GP 01615)

JANNAH JAYA ENTERPRISE Restaurant and Caterer Jannah Jaya has assigned private company to distribute their pamphlets and brochures regarding the restaurant and 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
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JANNAH JAYA ENTERPRISE Restaurant and Caterer 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 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

Done By : Mohd Shafie Osman (GP 01615)

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JANNAH JAYA ENTERPRISE Restaurant and Caterer 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 workers especially young workers switched their job to factory sectors. This situation really gives impact wheres 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

Done By : Mohd Shafie Osman (GP 01615)

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JANNAH JAYA ENTERPRISE Restaurant and Caterer 4.0 Picture Attachment

Merlimau Town

JANNAH JAYA ENTERPRISE Restaurant and Caterer

Done By : Mohd Shafie Osman (GP 01615)

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JANNAH JAYA ENTERPRISE Restaurant and Caterer

Menu

Restaurant Dining

Done By : Mohd Shafie Osman (GP 01615)

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