MANAGERSHIP BREADTALK OPPORTUNITY IN MADIUN

BY: HESTI LUSTIKA W

A THESIS SUBMITTED IN PARTIAL FULLFILMENT OF THE REQUIREMENT FOR MANAGERSHIP PAPER AT STIE IEU SURABAYA

CHAPTER I INTRODUCTION

1.1 Background
For this paper, I decided to choose topic about BreadTalk business opportunity in a small town, Madiun. Because business in this day is not easy, so must work hard to find out that you can be better than your customer. For long time successful company like BreadTalk, to be better than competitor you must know what are the customers wanted, what they demand, and what makes them always want for what you serve. And for the city of doing business for BreadTalk, I decided to choose Madiun. Because Madiun is a small city with small population, yet have a long time history for the country and play a big role in Indonesia and the revolution of it are very interesting. I know all of that because I have been stay in there for more than three years. And it is a very good experience to be one of Madiun society. And to understand how the city growth and survive for a very long time. I find out that BreadTalk is a pioneer in the food and beverage field. The company invests on average S$500,000 into each new store, using sleek and modern interior design to create a unique ambience, comfortable environment and very special shopping experience for their customers. From the glass panels of the shop front to the sleek white display shelves and neatly arranged appliances in the stainless steel open-plan kitchen, BreadTalk invites customer’s in-store with the delicious smell of fresh and hygienically baked bread. The mindboggling variety of bread is made before their very eyes, in a clean and modern environment; customers are left in little doubt of BreadTalk’s commitment to care and innovation. And it is all bring a huge benefit for the company.

Among few new bread boutiques in Madiun, the one which really sweeps their people is no store that really provides what they need, from west to south. Breadtalk opened in Singapore on in July 2000 with a revolutionary take on the bread industry. Entering the market with its new concept of a boutique bakery, it shook up the bread industry with its innovative and creative products. And they have opportunity of successful in Madiun.

1.2 Problem Statement
1. Unknown the result of BreadTalk opportunity in Madiun 2. Unknown the people, the culture, and the long time history of Madiun 3. Unknown how to introduce this bread business to Madiun people 4. Unknown the customers opinion about BreadTalk 5. Unknown the BreadTalk condition in the market

1.3 Objectives of the Study
1. To know the result of BreadTalk opportunity in Madiun 2. To know the people, the culture, and the long time history of Madiun 3. To know how to introduce this bread business to Madiun people 4. To know customers opinion about BreadTalk 5. To know the B

1.4 Scope and Analyze
1. This thesis only analyze BreadTalk opportunity in doing business in Madiun 2. The needed and demand of people for BreadTalk 3. The power of BreadTalk for successful in bread business

CHAPTER II LITERATURE REVIEW

The most important strategy in getting organized is to know your objective. Decide what objectives are and begin to separate what must do to achieve the objectives from any others matter that call on the time ruthless in avoiding unnecessary.

2.1

Goal/ objectives

Goal are “desired outcomes for individual, groups or entire organization” Robbins, Stephen P. and Marry Coulter Management 8th. Goals provide the direction for all management, decisions and from the criteria against which actual work accomplishment can be measured. To knowing the objective, there are some steps that should follow, which are:

2.1.1 Focusing on the aims

Other tasks often distract an organization from the real responsibilities. Distinguish between the actions & information that directly contribute to the business success & the other issues that infringe on the organization workload. Be quite clear about the objectives & remind the organization of what aiming for refer to the job description. If its have one or ask the leader for viewing the job & use this as a basis for the job description. So, the organization can set the objectives.

• Analyze the Role
To make a goal become really good, people should analyze all the roles. So, the goal can't go wrong. By analyze the role, can make people considered from all perspective before determining the objectives. People should prepare the notes for future references.

2.1.2 Setting the Objective
Work out the objective by using the key areas of the job in order of importance. Line the number of objectives area to six & choose activities worlds to describe the objective. Add the percentage of time that the organization need to put into each area. The setting should make sure so, it can measure the achievement in each area & consider the best ways to monitor the performance. For example through customer feedback or regular reviews.

• Documenting Objectives
The organization should document all the objectives. Make more specific & clear the objectives. So, organization can focused to the work. Make sure the organization include the performance measures that team & leader have agreed.

2.1.3 Being Critical List all things that team should do currently & put them into the order in which they are trying to achieve the easier it will be to get things into the right order. For example, create a second list. Using the calendar or team activity reporting system, of team work activities in order of the time they spend on each time. Compare the two lists. If they are both in the same order, focused on what is important to achieve the objectives

• Comparing List
Comparing list is very advantage. It makes the team set the priorities & methods. So, the team makes it. For example, they can find that the list of their objectives priority rating is very different to their daily schedule. There going to have to change the priorities & methods. \How to compare??? By use 3 point to remember: 1. Objectives can be restated by the team leader to clarify precisely. What is expected of all the team members. 2. Urgent tasks are not always the most important t6asks. 3. It is important to take the time to analyze the team's routines

2.2

Preparing to Do-It-Now

People who operate on do-it-now basis focus on the important activities they need to complete in order to meet their objectives. Make a start on working more effectively. A do-it-now people can be relied on to get work done on time. Such people do not put anything off until later, whether the issue involves taking immediate action, thinking matters through, or gathering the facts necessary to make a decision. That’s why proactive people do the right things on time.

2.2.1 Why Do-It-Now ???
Some business people consistently meet their performance targets by dealing with the right issues in the right order. They are in control of both personal & business lives & their colleagues rely on them. Do-it-Now people have to cope with stress in their business lives like everyone else, but their well organized approach and ability to cope with the issues of the day in a timely fashion allow them to keep stress to a minimum. Finally, when Do-It-Now people go home, they leave work behind them entirely knowing that their task is under control.

• Creating Team Spirit
Do-It-Now people create maintain excellent relationship with their colleagues & business partners. So, their can create team spirit. People who doesn't have to worried & stress. Because Do-It-Now people can create fun situation.

2.2.2 Analyzing Others
Each team of the organization should care each others. Think about the people who work with us. Divide them into Do-It-Now people & the put-it-off gang. Think about what distinguish one group from the others. Do-It-Now people will never reminding that they have a task to complete & they will tell when to expect the task to be done. Conversely, we never know where they are with people who put-it-off... for example, if they are having difficulty with a task, they fail to inform us & we find out that something has gone wrong only when the completion date has passed. Decide which category of person our colleagues would put us into. Make sure we keep everyone informed about when a task will be completed.

• Working Pro actively
Working pro actively can make all the work done faster. A pro active person reviews a task on receipt, schedules it, & than informs the relevant parties of a completion date.

Review

Schedule

Inform

2.2.3

Resolving to Change

Decide how to become a Do-It-Now person. This may require us to make significant changes to the way we work. Getting organized may involve . For example, changing your filling

system. Using new system for making decisions or implementing new way of prioritizing actions. Remember, however, that is also a matter of getting our attitude right when taking control of our work. Be our pro active person who initiates action rather than a reactive one who waits to be prompted.

• Aiming to Do-It-Now
The qualities that a Do-It-Now person poss. eases, lead to a reputation fro reliability & for being able to complete actions successfully, on time, & with the minimum of stress.

Communication Effectively Takes Initiatives Responds Efficiently

Improve Processes

Priorities Action

2.3

Managing relationship

2.3.1 What is culture?
Culture generally refers to patterns of human activity and the symbolic structures that give such activities significance and importance. Cultures can be "understood as systems of symbols and meanings that even their creators contest, that lack fixed boundaries, that are constantly in flux, and that interact and compete with one another.

Culture can be defined as all the ways of life including arts, beliefs and institutions of a population that is passed down from generation to generation. Culture has been called "the way of life for an entire society."[3] As such, it includes codes of manners, dress, language, religion, rituals, norms of behavior such as law and morality, and systems of belief as well as the art.

2.3.2 Cultural influences
The invisible aspects of culture influence cause the visible ones. Religious beliefs, for example, are clearly manifest in certain holiday, customs, and notions of modesty affect styles of dress. For example: Case culture between Indonesia and Malaysia, • • • The Indonesian's culture’s song (Rasa sayang e), Traditional dance (Reog ponorogo), Traditional clothes (Batik).

2.3.3 Analyzing culture

Culture are often said to be like icebergs. Above the surface are the

characteristics that can be seen, heard, touched, smelled, and tasted. For example: wayang kulit from java, everyone in Indonesia especially for Javanese people. Because wayang kulit has become unique culture with a long history.

2.3.4 Understanding culture
Why is it important that you learn about other cultures? There are a number of reasons. Some may do it simply because they find fascinating the different ways that people think, speak, act, evaluate, and communicate. • • To learn about our cultures and how it shaped us. To understand how other cultures work so that we can be an effective global

manager. For example:

In business: An American boss will find that relations with Saudi employees

will become strained and difficult if she or he simply treats them as though they were Americans. In the world we live in, understanding culture in general and also specific individual cultures in particular can make the difference between success and failure in the global market and economy. China and the Islamic nations, whose history, culture and literature are the focus of this course, are major players in the world economy.

In Politics and Diplomacy: If your career goal involves anything that relates to

international politics and diplomacy, then understanding other cultures is important. Often as Americans we only acknowledge the existence of other societies and nations with their very different values, beliefs, ideologies and interests, when it comes to the point of some sort of crisis or perhaps even war. A better way is to seek to understand other nations and cultures before things come to a crisis. • In Religious and Social Work: If you are either a religious believer or simply a

conscientious world citizen, you may decide at some point in your life to become involved in some form of relief effort or church mission trip. If this (as is quite

likely) involves crossing cultural boundaries, then you will find that understanding other cultures and societies will prevent you from offering what is known as the ‘kindness that kills’. Many well-intentioned people from North America and Western Europe have gone to other cultures hoping to offer a helping hand of some sort. Often, because of a failure to understand the local situation and culture adequately, what began as well-meaning charity has become something not only less-than-helpful, but actually harmful. Understanding other cultures is a key to avoiding such mistakes. • In Neighbors: If none of these previous factors motivates you, then you can

just look at this class as a lesson in good neighborliness in the global village. When you enter an internet chat room, send an e-mail, or visit a web page, you may be interacting with one of the over a billion people in this world that is either Chinese or Muslim! Instead of simply stereotyping, why not learn about these other cultures?

CHAPTER III METHODOLOGY
The processes of research will be more difficult. Because gathered the data by use Internet Information. The writer will be more focus on the Internet.

3.1 Problem Gathering
The Data will be more complete if we use the problem as the comparison. Because more data will be not accurate if its not compare by some problem. So, it can make the reader or the writer more understand the strategy from the problem.

3.2 The Purpose of Research
The purposes of the research are: 1. To make people more realize about how rich Indonesia especially for the spices, especially NAD 2. To make people consider the best strategy to attract the investor 3. To make people know accurately how to operate the best strategy to get good result in investment process

3.3 Data Gathering
The data will be gather from Internet, library, and from some media information such as newspaper, television and some important media. It make the writer more specific and carefully in doing the research.

3.4 Scope & Analyze
The data will be focused to the important of the strategy of getting organized & managing globally. So, the writer will be more directed by use the thing. It will be compare by some problem that happens in that company.

CHAPTER IV BREADTALK OPPORTUNITY IN MADIUN 4.1 Demographic comparison
Demographics comparison in this paper is to find out the differences between Madiun, which is a small country yet a great opportunity to start business. Madiun has a very large number of empty field and natural sources. And also Singapore, a modern country that full of competition and. Smalls or big capital have differences, and so the people that live in there, what they like or what they don’t like. Especially for Madiun and Singapore, their both have a very large difference of population, habit, languages, and culture. It is interesting to see how a city can growth from small to big, even from big to bigger. If you pay attention, you can almost fell the difference, and as human being, we are very grateful of what God have been given to us as Creatures.

4.1.2 Singapore demographic

Capital Languages

: Singapore city : English Malay Mandarin Tamil

Population 2008 estimate 2000 census Density

: : 4,839,400 (114th) : 4,117,700 : 6,489/km² (3rd) 16,392/sq mi

Religion

: Christianity (5%),Buddhism(5%)

(90%),Hinduism

Time zone

: SST (UTC+8)

4.1.3 Madiun demographic

Capital Population Density Ethnic groups Religion

: Madiun : 198,745 (2006) : 5.981/km² (1,879 /sq mi) : Javanese (90%), Chinese (5%), other (5%) : Islam (96.3%), Christianity (2.6%), Hinduism (0.6%), Buddhism (0.4%)

Languages Time zone

: Javanese and Indonesian : WIB (UTC+7)

Madiun is a city in the western part of the province of East Java Indonesia, an agricultural centre best known as the site of an uprising in 1948 which resulted in thousands of deaths. It is the capital of the regency of the same name.

Madiun, located 169 km south west of Surabaya, had a population of 190,823 in 1992. The town is an average of 63 meters above sea level and lies on the Madiun River, a tributary of the Bengawan Solo River. It is surrounded by a number of mountains, including Mount Wilis (2,169 m) to the east, to the south the Kapur Selatan range (500-1000 m) and to the west Mount Lawu (3,285 m). Madiun has an average temperature of 20 - 35 degrees C. Map of Madiun and surrounding area

Madiun was the site of an uprising, the "Madiun Affair", in 1948 by elements of the Communist Party of Indonesia (PKI). After the signing of the Renville Agreement that year, guerrilla units and militias under the influence of PKI were ordered to disband. In Madiun a group of PKI militia refused to disarm and were killed in September. The killings sparked a violent uprising. Army sources claimed that the PKI had announced the proclamation of the "Soviet Republic of Indonesia" on September 18 with Musso as its president and Amir Sjarifuddin as its prime minister.

The uprising was suppressed by republican troops. On September 30 Madiun was taken over by republican troops of the Silwangi Division. Thousands of party cadres were killed and 36 000 were imprisoned. Amongst the executed were several leaders including Musso who was killed on October 31, allegedly while trying to escape from prison. Other PKI leaders such as D.N. Aidit went into exile in China.

• View of Madiun
According to the formal reference of the history of Madiun (before dissociated to become Regency and Madiun City) started at XV century or precisely 18 July 1568 (the day of Madiun anniversary). At the time Prince Timoer trusted to become the duke of regency of Purabaya. The later; titled Panembahan Poerobojo. He is the brother of King Pajang Hadiwidjojo or Djoko Tinglir. (History of Madiun Regency, 1980).

In 1590, Purabaya attacked by Mataram. Legend of Woman War Lord named Retno Dumilah as Purabaya war lord. Purabaya fall and mastered by Mataram until 1830 (after Diponegoro War and won by Duth Colonist). This Matter possible influence Madiun culture and its surroundings felt Mataraman nuance than the cultural nuance of Arek Surabaya and its surroundings.

In 1831-1832 Madiun specified as the Capital city and the center of Madiun city government covered Madiun, Ngawi, Magetan, Ponorogo and Pacitan. At Dutch colonization era, Madiun also represent the industrial estate vitally sugar. Till in this time there are 6 (six) of sugar mill. The regions that produced this sugar mill are rejo Agung, Kanigoro, Pagotan, Purwodadi, Soedono and Redjo sarie laid at about 30 Km from Madiun city.

The stand up of Madiun City is based on Governmental Regulation of Indies Dutch number 326 at 20th June 1918 about Madiun City. But till 1928 it has not the Burgemester (mayor). It only managed by the Resident Assistant. Number Decree 411 in 1928, government of Ducth Indies pointed Mr. K.A. Schotman as Mayor of Madiun public service District, and govern till 1932.

4.2 Madiun culture
Close to Madiun a village is whose inhabitants work in the manufacture of figurines of the traditional shadow theater Javanese Wayang kulit . They can also organize spectacles for ceremonies like the marriages and other occasions asking for the behavior of such a spectacle.

To 8 km in the east of Madiun, in the village of Nglambangan, ruins are which the inhabitants date from the time of the kingdom of Majapahit, whose will pura (palate) of Lambangsari. They are regarded as crowned by the inhabitants and are the framework of ceremonies of the Javanese traditional religion during the Moslem month of Syuro .

To see some artistic of typical culture performance of Madiun City, for example: Tayung Ronggo Lawung Dance get from typical artistry of Madiun City “gembrung” depicting adolescent of 'santri' (Moslem student) exercising in the advocating effort and warrior of Retno Dumilah.

There is also Famous Madiun with pre-eminent product of food brem. One of food typical of Madiun is Pecel Madiun, and sambal pecel madiun.Town Madiun also is traditional culture maintainer, that is pencaksilat.Where is one of properties of art beladiri in Indonesia. Form of the conservations like still existence of various organizations pencak kunfu like Setia Hati Winongo,Devoted is Liver Tattuhu Tekad and Setia Hati Terate which can be told as organization pencak the biggest kunfu in Indonesia, what own? Have wide networks.

4.3 BreadTalk

BreadTalk Group Limited is a listed bakery based in Singapore and was founded in April, 2000. It currently operates a chain of retail outlets through its subsidiary BreadTalk Pte Ltd, selling a wide range of bread, cakes, buns and pastries. The Group currently has a chain of 24 retail outlets islandwide in Singapore, and is seeking to expand overseas by opening branches in Indonesia, Hong Kong, and the People's Republic of China, Philippines, Malaysia, Taiwan, Thailand, United Arab Emirates, and India.

A BreadTalk outlet at Causeway Point, Woodlands, SingaporeBreadTalk stores are recognized by their distinctive BreadTalk signboards and brightly lit store interiors. BreadTalk has also been credited with revitalizing the otherwise conservative bakery scene in Singapore with its creative store designs and emphasis on consumer marketing. A novel

concept that BreadTalk embraced was its "see-through" kitchens, often located next to or within the retail outlet, separated from the main retail space by transparent glass panes, allowing the public to view the kitchens. The rationale for doing this was that it would promote confidence in their hygiene quality and food standards. BreadTalk's signature food items are chicken and pork floss buns. A recent popular addition is the spicy version of the chicken and floss buns.

Entering the market with its new concept of a boutique bakery, it shook up the bread industry with its innovative and creative products. With over 200 varieties of breads, Breadtalk prides itself with the unique bread/cakes names and personalities that echo fun irreverence. The most popular Breadtalk's product is fire floss bun. Cakes include scarlet passion, mint mousse, and sweet chocolate sahara. Breads go for Rp.5.500 to Rp.9.000, while cakes go for Rp.9.500 per piece.

• BreadTalk in Indonesia
BreadTalk's branches in Indonesia are owned and managed by Johnny Andrea, a famous hairdresser-turned-entrepreneur whose latest business, J.CO Donuts is a similarly styled bakery focusing on donuts and bearing similarities to Crispy Kreme.

BreadTalk opened its first franchise outlet in Jakarta in April 2003, where the franchisee pays an initial base fee, a store license fee and a monthly royalty fee based on a percentage of gross revenue. BreadTalk provides ongoing training for franchisee’s staff and certain raw materials and ingredients. BreadTalk has received inquiries from interested franchisees in other countries, including Malaysia, Hong Kong, Australia, and the USA.

4.3.1 BreadTalk product
Entering the market with its new concept of a boutique bakery, it shook up the bread industry with its innovative and creative products.

With over 200 varieties of breads, Breadtalk prides itself with the unique bread/cakes names and personalities that echo fun irreverence. The most popular Breadtalk's product is fire floss bun. Cakes include scarlet passion, mint mousse, and sweet chocolate sahara. Breads go for Rp.5.500 to Rp.9.000, while cakes go for Rp.9.500 per piece.

4.3.2 BreadTalk distribution
• • • • Since its opening, BreadTalk has received numerous enquires on franchising its brand. With our home base in Singapore, our first franchise outlet has opened in Jakarta, May 2003 to great success. Following the success in Jakarta with four outlets to date, Shanghai was the next country to follow with its direct investment. To date, BreadTalk has signed • BreadTalk has signed master agreements for the Philippines, Malaysia and the GCC of the Middle East. • These countries would open their first franchise outlet in the 2Nd quarter of 2004.

4.3.3 BreadTalk finance
George Quek, Managing Director and founder of BreadTalk, will be paid a monthly salary of $18,000, one month annual bonus payment, a car, and golf club membership. In addition, he will receive a profit-sharing bonus of 3% of all PBT up to $5 million, as well as 4% of any PBT above $5m each year.

During FY2002, BreadTalk PBT was $4.6m. If we assume PBT rises to $8m in a given year, George Quek will earn the following compensation: • • • Salary: $234,000 (plus car and free golf) PBT bonus: $270,000 Total Compensation in this hypothetical year = $504,000 (plus car & golf)

FINANCIAL PERFORMANCE

S$’000 Revenue Cost of sales Gross profit Distribution and selling expenses Administrative expenses Operating (loss)/profit Finance expenses-net (Loss)/Profit before taxation Tax expenses (Loss)/profit attributable to shareholders

FY2000 FY2001 FY2002 1,164 (385) 779 (713) (311) (245) (3) (248) (248) 16,741 (5,299) 11,442 (7,365) (1,420) 2,657 (56) 2,601 (628) 1,973 34,970 (11,750) 23,220 (15,348) (3,175) 4,697 (134) 4,563 (1,160) 3,403

4.4 BreadTalk opportunity
Some of the BreadTalk outlets modify their product selection to match local tastes. For example, the Paragon and Holland Village retail outlets offer a wider selection of European breads and cakes as the majority of customers who frequent these shops are likely to be tourists and expatriates. The Peranakan Place outlet also has special items with a distinctive

Peranakan flavor to meet the tastes of local customers. so where ever BreadTalk is standing; they always suit to customer’s taste and demand. That’s why, BreadTalk have a big opportunity in Madiun.

Almost 100% of Madiun people are Moslems, and people want food that is halal, and BreadTalk obtained halal certification in order to attract customers in countries with majorityMuslim populations, such as Malaysia and Indonesia. Without this understanding, long queues at BreadTalk counters in Jakarta and KualaLumpur might not have been existing.

People of Madiun like healthy food. And BreadTalk is now introducing four new varieties of bread that can be enjoyed as part of a healthy and nutritious meal and giving the state of rice supply in the country at the moment, it appears more and more people are enjoying the ‘western’ staple.

4.5 BreadTalk threat
Each company has weakness, and they afraid that it will ruin their business. Even big companies are afraid of failing in making step. And it is no exception for BreadTalk. I have some reason about threat that may attack BreadTalk: • Company that has the same concept of bread store like BreadTalk, and that is make customers more difficult to choose. • • Customers are bored by BreadTalk’s food They not following the trend of food again.

CHAPTER IV CONCLUSION

Open and maintain a business is not difficult. The most important is we should have a goal. So, we can do the business well and it can be direction for us to success and prepare our self to do the business now. Because now is more valuable than tomorrow. If we can do now, we can prepare our self better. We cab face any problem on tomorrow, than just sit and dream about the things. Many work less happen, because they are not pushing their self to do something. They are just surrender with the condition. People who just silent and does nothing will not ever get anything. We should do something to change our life. Remember, God create people with many creativities and talent. Nobody’s stupid in this world. If we want to hard with the life, the life will be soft to us.

In this case that I have discus, it is not easy to make a good brand image like BreadTalk, but if you want to learn from mistakes and find out your weakness, I’m sure that you can be successful in any kind of business. Doesn’t matter where you life, if you have a passion of what you are doing, you can be success; you just have to find the way. BreadTalk is one good example of good business I think, more company should learn from them, I think.

Small country doesn’t mean small opportunity, and a good company should understand that. If you give up on first impression of doing something, then you never be successful. But if you see opportunity even if other people wouldn’t see, then you realize you have the gift of make things different. And that is what I think of my research in this paper.

References
 www.google.com  www.wikipedia.com  www.Breadtalk.com  www.WhyGoIndonesia.com  www.InsideJakarta.com  www.Madiuncitytour.com  www.Spedylook.com

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