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NAME NO. MATRIKULASI NO. TELEFON E-MEL : : RUZINA AMRUN : : 690824105392002 690824105392 014 2693079




Prepared for

Encik Hassan b. Salehin The Branch Manager Tunas Manja Hypermarket Kuala Selangor


Puan Ruzina Amrun The Store Manager Tunas Manja Hypermarket Kuala Selangor. 23rd October 2011



Tunas Manja Hypermarket opens its new branch in Kuala Selangor in the year 2009. It is the 20th store in the chain of Tunas Manja Hypermarket all over Malaysia. The store offers varieties of products from many Malaysian famous brands as well as selling its own house brand. Tunas Manja Hypermarket caters to all types of customers in the surrounding areas and from the neighbouring town. It adapts a fresh approach to shopping by providing a new concept. The store is designed in such a way to enable the shoppers to shop for their groceries and household items in comfort and convenience. It customer service. Tunas Manjas business motto is store needs customers to exist. It believes that, while profits are necessary for any business entity, a business relies on the society within which it operates, and it just could not exist and prosper in isolation. The stores need the customers while the customers want to buy goods from stores that they trust. Thus, these stores must obtain their goods from trustworthy sources. Satisfying each of these will allow everybody to benefit at the fullest. However, like other big stores, Tunas Manja Hypermarket receives many complaints concerning the products sold as well as the service rendered by the employees of the hypermarket. Some of the complaints can be dealt on the spot, while some need thorough investigations. This report aims at highlighting the complaints logged by the customers and getting to the roots of the problems, and finding solutions to solve them. The complaints are made regarding to the quality of the frozen lamb purchased at the store recently. The complainants stated that the frozen lamb they bought at the store had a peculiar taste. has also gained its popularity among the customers by offering reasonable priced products and excellent

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Thus, it is hoped that the report will assist the management of Tunas Manja corporation in making the necessary decisions and to avoid making similar mistakes in the future. As the store manager, I had found these complaints relatively disturbing. In my opinion, similar problems encountered by more than 2 customers should be looked into, as there might be unforeseen problems somewhere, which need to be discovered and solved. Other than taking the usual actions, such as demanding proofs of purchase and offering refunds to the complainants, a meeting had been conducted among the managers to discuss the complaints and to get to the roots of the complaints. The attendees of the meeting were The Sales and Marketing Manager, The Human Resource Manager, The Housekeeping Manager and The Customer Service Manager of Tunas Manja Kuala Selangor branch. The personnel were briefed on the complaints received. They were instructed to do internal investigations among the staffs in their own departments and to come up with a written report of any possible problems that might have been the cause of the complaints in one weeks time. It was significant for the managers to realize that the reports were crucial for further actions. The reports that were received from the managers reveal four troubling discoveries. 2.0 THE FIVE POSSIBLE PROBLEMS. 2.1 APPOINTMENT OF A NEW SUPPLIER BY THE HQ

The latest batch of lamb received by Tunas Manja Hypermarket Kuala Selangor branch was delivered by Mr. Wong Lee Fah, from Good Meat Sdn Bhd, a new supplier appointed by the HQ. After a thorough investigation, it was found out that Mr. Wong did not meet the standard set by the store in several ways. First, the new batch of frozen lamb delivered was of inferior quality. The contract had clearly stated the standard and criteria that suppliers should follow and adhere to and Good Meat Sdn. Bhd clearly did not follow any of the terms and conditions that all suppliers must.

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After further enquiries, it was found out that Good Meat Sdn. Bhd did this in order to increase its profit margin. The company managed to get the contract by quoting lower tender compared to other bidders. However, Good Meat Sdn Bhd intended to gain back its losses by supplying inferior quality lamb which costs much, much lower that what was originally quoted in the contract. To curb this issue from re-occurring, it is proposed that the old supplier is re-appointed. The former supplier, Semoyang Tinggi Sdn. Bhd. had lost its bid against Good Meat Sdn.Bhd. by a fraction of a percentage. Although Semoyang Tinggi might cost higher, it had an excellent reputation and history with the Tunas Manja corporation. Renewing the contract with Semoyang Tinggi Sdn. Bhd will mean cutting out

unnecessary waste and obtaining the product at the optimum value and quality. The communication levels between Tunas Manja corporation and Semoyang Tinggi had always been good with high ability to address and resolve issues. The history between these two parties will also mean that costs associated with changing suppliers can be avoided. Looking at the retailing level, the customers of Tunas Manja Hypermarket Kuala Selangor branch will not have to worry about purchasing inferior quality frozen lamb that has changed in taste and texture again.As the store manager, I propose that the remaining stock of frozen lamb be sold at a discounted price, as suited to the original quality of the frozen lamb. 2.0 LARGE QUANTITY OF STOCK KEEPING.

For several years, there was a significant shortage in the supplies of frozen lamb from exporting countries. The hypermarket had experienced difficulties in obtaining stock when orders were made. There was even a time when it totally ran out of stock. Suppliers could not keep up with the demand of frozen lamb from all over the country, what more with the escalating popularity of grilled lamb dish that suddenly overtook the nation.

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The shortage of supplies was inevitable. There was a long, unending draught in the major lamb exporting country which had led to disease and lack of food for the livestock. The price of food escalated because crops were destroyed by the heat of the draught and lack of water supply. Not only there was a shortage in lamb supply, but there was an increase in cost as well. In order to avoid being too affected by the phenomenon, the store had made a decision to order a larger quantity of stock from the supplier, not realizing that it was a bad move. The supplier concerned was Good Meat Sdn. Bhd, and the quality of the frozen lamb in question was not what the hypermarket usually sell. Not only the lamb was of inferior quality, but ordering a large batch of it had made it worse. Keeping a large stock of lamb in the freezer for a longer period of time will cause the lamb to experience freezer burn, a major factor that will affect the quality of any frozen meat, in this case, the taste of the frozen lamb. However, the lamb is still safe for consumption. To avoid this incident from reoccurring, it is proposed that future stock taking should be done in a smaller quantity. This action may result in higher expenditure but it will help the store to keep up its promise to the customers by trying its best to sell best quality products. It should be noted that satisfied customers are good advertisers. Mouth to mouth recommendations are the most effective advertising tort that a store can get for free. Therefore, supplying products that meet the customers expectation will likely make the customers promote. 2.3 POOR QUALITY PLASTIC WRAPPER

After much inspection and questioning, another factor that might be the cause of the problem was discovered. The plastic wrapper that was used as packaging for the frozen lamb was of poor quality. Many of the lamb packages which were encased in the plastic casing had torn in places as the plastic was thin and not very durable, and could not

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withstood repeated and rough handlings during transportation. The lamb in the affected packaging was exposed and it had became dry and brittle which might contributed to the change of quality, hence the peculiar taste. Torn packaging will also make it easier for the freezer burn to seep in. It is a quality detractor when cold air comes in contact with the surface of the lamb causing it to lose moisture. Discolouration will set in and the lamb will take on a dry and leathery texture. To avoid or minimize freezer burn, good packaging is necessary. The usage of non-air permeable plastic is required. Again, Good Meat Sdn Bhd did not follow the stores guideline which resulted in lost of revenue, and waste of resources. While dealing with suppliers, the store should make it a priority to stress that goods must come in its proper packaging, or else, be rejected. Quality check should be done stringently to ensure all regulations are followed to avoid unnecessary trouble and waste. 2.4 INABILITY TO PROPERLY MAINTAIN THE DELIVERY VAN

Study has shown that frozen meat should always be transported in a permanent frozen condition to ensure it is not spoiled. Frozen meat cannot be thawed, then refreeze. If this happen, the meat may not be safe for consumption anymore. Even a slight rise to the temperature will make the meat lessen in its quality. Another of Good Meat Sdn. Bhds wrong conduct was the companys inability to properly maintain the transport they used in transporting the frozen meat to the hypermarket. The supplier used a mobile cold storage facility when delivering the frozen meat to the hypermarket to keep the freshness intact. All seemed fine, until the staff at the unloading bay were interviewed. They related that, when they were transferring the frozen lamb from the meat van, into the hypermarkets cold room, the generator that powered the freezer on the van was not working, and there was a lot of water on the floor

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of the van. After being questioned, the van driver admitted that the generator broke down for more than 12 hours earlier, and all the while, the frozen lamb was inside the freezer. Although not fully thawed, the lamb might still be affected by the rise of temperature and its quality can be questioned. Thawed frozen meat product that has been refreeze contain harmful bacteria and micro organism which can cause serious health problems if consumed. The incident could be avoided if Good Meat Sdn. Bhd. had taken the trouble to inspect the van to make sure the generator and the freezer were working properly. It is proposed that Good Meat Sdn Bhd is called in and be given the opportunity to explain about the broken generator. If found responsible for the break down, Good Meat Sdn Bhd shall be held reliable over the spoiled batch of lamb.



Tunas Manja hypermarket is respected by its customers as a store that values its customers. The Human Resource Department had taken necessary actions to ensure that every store personnel is properly trained to give the customers good service. The department also conducts regular meetings to get feedbacks from employees and to make sure work ethics are constantly followed. However, there was always an oversight when it comes to dealing with human personality and behaviour. One of the customer that bought the peculiar tasting lamb was irked by the improper attitude of one of the staff that she encountered while purchasing the lamb. She said that her bad purchase would not have happened if the staff on duty was helpful and friendly. She tried to ask the staff that was on duty to her find a good pack of frozen lamb leg for her to buy. As the packages of lamb in the freezer compartment were arranged in such a way that it was quite difficult for her tiny self to get, she needed some assistance in pulling the pack from the pile. Her request was dismissed with sarcastic remarks which stunned, and later infuriated her. She was highly

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embarrassed and humiliated by the improper treatment she received from the staff. Such attitude cannot be tolerated in any circumstances as it will only tarnish the image of the hypermarket. She said that she will definitely tell her friends about the incident. The customer was a regular at the hypermarket. She did her shopping at the store at least twice a month. As the store is located near her house, she found it very convenient to come here. On top of that, she could find almost everything that she needed at the store. Therefore, it is only natural that she found it very disappointing to experience such encounter on that day. Her other visits were always smooth and pleasing. The customer said she might not be as disappointed over the unsatisfied purchase had the employee be more agreeable. She felt that the store had done her injustice both in product and service. She wanted a full refund and demanded that the employee concerned be terminated from employment. As the store manager, I propose that the human resource department conduct an interview with the staff to get a detailed overview of the incident. There should be a witness present as well as the supervisor of the frozen meat department. This issue should be treated with care to avoid doing any injustice to any parties. However, if the complaint proved to be true, then appropriate action should be taken as determined by the higher management.



It is essential for the Tunas Manja management to allocate some space for changes as suggested by the report, as it will be benefiting for both the company and the customers. There were much discussion done, many meetings were called, before finalizing the report, where all factors of the probable actions and solutions have undergone much considerations and thoughts. The attendees of the meeting had gone through all the pros and cons of the probable outcomes before coming up with suggested solutions.

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The problems that the hypermarket is dealing right now, does not only concern with satisfying the affected customer. The consequences go deeper than that. The complainant only served as the person who brought forward her discontentment, whereas, the real problems were the cause of more serious matters in the future, which may affect the hypermarket in the long run, should no action be taken. Making changes will definitely cost the hypermarket. However, it is a very insignificant amount, compared to the future outcome of the changes. Tunas Manja hypermarket will gain back the confidence and loyalty of the customers which may be lost should similar incidents take place again. The store will not want to experience personal boycott, a term that is used to define a persons decision to discontinue purchase of offending products and to withhold patronage of the store, as it will damage the stores long standing reputation and credibility. As three out of five of the problems identified go against Good Meat Sdn. Bhd, it is recommended that firm action be taken against the company as suggested, or as deemed fit by the management. The move will serve as examples to other companies that Tunas Manja management will not hesitate in taking necessary actions against them, should there be any wrongdoings. According to Jacoby and Jaccard,1981,pg 18, the act of making a complaint is influenced by a multiplicity of factors, including product dissatisfaction, reputation of the retailer, ease of access of complaints channels, consumer attitudes and motives, cost and benefits of complaining, and the importance of the situation. Many customers actually fail to complain when confronted with a problematic purchase because they do not want to be bothered by the procedures. Therefore, concerning complaints received, providing the customers with logical explanations for any service failures, and compensating them in some ways, can mitigate satisfaction.

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