Professional Documents
Culture Documents
1
TABLE OF FIGURES AND TABLES
2
1.0 EXECUTIVE SUMMARY
Sinar Saujana Hiasan Lampu Enterprise was first operated in 2006 and owned by
Madam Chia Chuah Sin, but in 2008, the company was then passed down to Miss Ani Binti
Ahmad. This company consist of four member which are the founder, the general manager
who is also the financial manager, the operational manager and lastly the marketing manager.
Sinar Saujana Hiasan Lampu Enterprise is located in the middle of a town called Bandar
Utama in Sungai Buloh, Selangor which is a strategic place because it is visited by most
people ranging from young adults to elders.
The company not only distributes lamps but also other equipment such as fans, iron
works and electrical appliances in which their pricing is value-based. As per marketing
management, the products are distributed directly to customers and in order to promote the
products, they use brochures, flyers and banners as well as social media such as Facebook to
attract buyers. Their business operates from 9.00 a.m. to 11.00 p.m. (14 hours per day) and 7
days per week.
Miss Ani had mentioned that they were experiencing financial problems and this
problem will bound to lead to an even major problem in the future. After further analysis it
was found that the financial problems were due to poor management of records where there
are no systems in managing records, purchases, payments, receipts and etcetera. The financial
records were also handled by a single person and thus lead to slow working progress.
The mission of Sinar Saujana Hiasan Lampu Enterprise was to successfully supply
people with the best quality, variations and sizes of unique lamps that would see fit to their
utmost satisfaction. In order to pursue those missions, a suitable alternative was needed to
reduce their financial crisis. And the suitable alternative concluded were by establishing a
business checking account to keep all accounting programs organized, setting up good
accounting system software and hiring an expert bookkeeper. With all those alternatives, the
company will reduce its financial problems and achieves an even high success and profits.
3
2.0 INTRODUCTION
As UiTM students who further their study in diploma level need to take
Fundamental of Entrepreneurship course or ENT300 to give guidelines and exposing
students to the business orientation. In this course students will conduct a case study to
any business or company. In this case study, students are required to interview any
company or business to get know the problem that been faced by the companies or
businesses. After that students should analyse the problem and find solution for any
problem that have. The benefit of case study is students will be more intelligence in
conducting businesses. Next benefit is students will be exposed on how company
operating its businesses. Thus, the case study is the good medium to teach students on
how to solve the problem. For this case study, we decided to choose and interview the
owner of Sinar Saujana Hiasan Lampu Enterprise. This store offers and sells various type
of lamps decorative lamps. This store starts operating in 2006 and initially owned by
Madam Chia Chuah Sin. But, in 2008 the ownership of this store was taken over by Miss
Ani binti Ahmad. We managed to set an appointment to interview the owner at her store
that was located at No. 11G, Jalan Bidara 10, Bandar Saujana Utama, 47000 Sungai
Buloh, Selangor.
4
2.2 Problem Statement
Miss Ani mentioned that she had faced some problems while handling this
business and one of them is regarding to the financial issue. According to Miss Ani, she
predicts that this store will become bigger in the future as the profitability of this store
has increased over the year. This store had become a main choice among citizens in
Bandar Saujana Utama if they want to buy a lamp because not only design of the lamp is
attractive, but also the price is considered affordable. But the main problem of this store
is the financial management of this business was handled manually, which can lead to
many serious mistakes. Mistakes may occurs while recording and calculating the finance
in the company if they record the finance manually. The other problem is this store only
famous and well known among Bandar Saujana Utama citizens and not really exposed to
outsiders due to the limitation of marketing. As example, the marketing strategy was not
strong enough to attract people from outside of the city due to the lack of awareness in
doing successful marketing strategy. Next, the variety of product are lesser which is the
store focusing on several electrical product such as bulb, lamps and gates which are not
including overall electrical part that are needed by the people. It did not have any
improvement and this cause a bad reputation for his store. Even though there are many
problem faced by the owner, Miss Ani still manages to keep his store as one of the top
choice among Bandar Saujana Utama citizens when it comes to lamp store.
In this case study, we are required to search about a business company and we need
to interview the owner regarding on the company’s background and the problem faced
by owner while handing the business. We also need to identify the type of business and
what kind of service that they offer. The purpose of this case study is to gain more
knowledge regarding business, including the pros and cons of business that may occur
such as problems and the solutions to handle the problem. Next, the purpose of the study
also giving us the ability of identifying the problems in the businesses, to suggest
solutions to these major problems, to recommend the best solution to be implemented
and to detail the step of this solution should be implemented.
5
3.0 BUSINESS INFORMATION
Products/Services Lamps
Fans
Electrical appliances
Ironworks
Wiring
Plumbing
Online Page Facebook: Sinar Saujana Hiasan Lampu
6
3.2 Organizational Structure
Founder
General
Manager
The company operates in the effort of 4 people together, which are the founder, the general
manager who is also the financial manager, the marketing manager, as well as operational
manager.
Sinar Saujana Hiasan Lampu Enterprise was a retail store which offers more
products such as fan, lamp and electrical appliances. All of the items were purchased by
the wholesaler at Selangor, Malacca and Pulau Pinang. It also used two kinds of business
model which are “Low-Touch” model, “Brick and Mortar” model and Sole
Proprietorship for the ownership of company.
“Low- Touch” model is a business model which was requires minimal involvement
or assistance from employee in selling product or services. The customers are buying the
product or service and don’t place much value in the individual selling to the business.
An advantage of this model was it will be a lower cost for a business to acquire
customers as hiring and maintaining a sales team can be expensive.
7
“Brick and Mortar” model is a traditional street-side business that deals with its
customers face-to-face in the store that the businesses owns or rents. The local grocery
and the corner banks are the examples of brick and mortar companies. Brick and mortar
businesses can find it difficult to compete with web-based businesses like Amazon.com,
Incorporation because the latter usually have lower operating cost and greater flexibility.
Brick and mortar businesses have several distinct advantages over their online
counterparts. Many consumers still prefer with people directly as they believe question
about the product or services can be dealt with in a more comprehensive an immediate
manner at a face-to-face level. Brick and mortar businesses allow consumers to hold, try
and touch items before they buy. Consumers associated legitimacy with a bricks and
mortar business as a physical presence often gives a perception of trust. Brick and
mortar businesses provide consumers with instant gratification when a purchase is made.
As a result, consumers typically spend more time than they intend to at brick and mortar
stores. However, there are several key disadvantages to operating a traditional brick and
mortar businesses. A physical presence requires the need for employees to conduct
transactions, renting or easing expenses and utility charges such as electricity and water.
Sole proprietorship is a business that legally has no separate existence from its
owner, income and losses are taxed on the individual personal income tax return. The
sole proprietorship is the simplest business form under which one can operate a business.
The sole proprietorship is not a legal entity. It simply refers to a person who owns the
business and is personally responsible for its debts. A sole proprietorship can operate
under a fictitious name, such as Naim’s Bike Garage. It is a simple trade name where it
does not create a legal entity separate from the sole proprietor owner. The sole
proprietorship is a popular business form due to its simplicity, ease of setup and nominal
cost. A sole proprietor need only register his or her name and secure local license, and
the sole proprietor is ready for business. A distinct disadvantage is that the owner of a
sole proprietorship remains personally liable for all the business debts. So if a sole
proprietor business runs into financial trouble, creditors can bring lawsuits against the
business debts with his or her money.
8
3.4 Products & Services
The company distributes lamp, fans, iron works and electrical appliances. They
offer the customers a wide range of lamp designs, so that the customers can choose them
accordingly to their likings and also to the designs of their home. Apart from the lamps,
they also provide a selection of fan appliances, as well as other electrical appliances,
hence making their business a one-stop shop for people who had just moved into the
area. Besides that, services of electrical wiring, plumbing and roofing also been offered
to the residential area.
• Quality
According to Miss Ani, they were made sure to order a good quality of metal or the
material of the lamp that can be used for many years from suppliers. Cast iron and
aluminium are the good example of the material which are resistant towards the rain and
extreme temperature.
The products are wrapped with box and covered more with newspaper. The reason why
they chose to use boxes is because it is due to the fragility of the object and also easier
for the customers to carry the part of the lamps, fan or electrical appliances which as they
can easily dispose of the box after they are done beside of they can prevent the small part
of the screw not loss that cause the lamp is not worked properly.
Sinar Saujana Hiasan Lampu was offering many products and services towards the
people which cover the electrical appliances, fan and many beautiful and fancy-like
lamps that can attract many people to this shop. Besides that, there are SIRIM stickers
which immediately determine the product was safer to use.
9
3.5.2 Price Strategy
A business using value-based pricing must perform a research on the range of price that
the customers are willing to pay.
• Direct to customer
This shop in No 11G, Jalan Bidara 10, Bandar Saujana Utama is reachable by vehicle,
such as car. Customers can visited and buy our product directly from our outlet. We take
a lengthy measure of cautions regarding the quality of our products.
The company uses brochures, flyers and banners all around the town to maximize
advertising to customers nearby. This way, customers know where they can find their
service and products. The customers will also know how to contact them. Besides
brochures and flyers, the company also makes use of the effectiveness of social media.
The social media that they have been using to advertise their business is Facebook. The
company found out that it is a whole lot easier to set up a business page on social media
platforms like Facebook, rather than using the traditional techniques. The company sets
up a Facebook page that stated their business nature and their company name, as well as
their contact numbers. From here, customers can easily find out about them and possibly
make a business with them. Moreover, customers will feel more confident and develop a
sense of trust towards the company due to positive feedbacks and vouch that is given by
other customers on the social media platform.
10
3.6 Operational Strategy
Show to the client the work process and the results after doing the
defects
Item Quantity
Drill 2
Bulb Tester 1
Screwdriver 2
Test pen 10
Hammer 1
Table 2
Electronic Calculator 1
Printer 2
Fax Machine 1
Telephones 1
Table 3.0: List of Machine and Equipment
12
3.6.3 Business and Operation Hours
13
3.7 Financial Achievements
14
4.0 COMPANY ANALYSIS
STRENGTH WEAKNESS
OPPORTUNITY THREATS
15
5.0 BUSINESS PROBLEM
The major problem faced by the company is related to the financial issues. It is due to
poor management of financial records such as receipt and financial statement. Without a
thorough documented records management strategy, the company experience
miscommunication and data loss. It can lead to difficulty in finding files that provide
information on customer accounts, including purchases, payments, receipts and tax
information. Furthermore, the financial records are managed by the owner of the company
manually. This can take a longer time since all the records are managed by only one person
so he has to do everything from maintaining the business to organizing the financial records
by himself.
i. Establish business checking account to keep all the business accounting program
records organized.
Advantages: -
A business checking account separates personal and business transactions
which helps to monitor business’s profitability.
Easily track business income and expenses and helps file taxes accurately.
Disadvantages: -
There are many fees that apply to business checking accounts compared to
personal checking accounts. For example, a well-established business is
commonly expected to hold a somewhat high minimum balance and may be
charged fees for failing to do so. An individual account holder, however, is
usually not expected to keep any particular amount in their account and can
have a $0 balance, as long as they do not overdraw.
16
ii. Set up a good accounting software system
Advantages: -
It saves a lot of time over manual bookkeeping. With a computerized
accounting package, front end business documents and back end
transaction recordings are completed simultaneously.
There are many low risks of blunder and error in calculations using accounting
software.
Disadvantages: -
The package costs, although small in relation to the other costs, is higher than
a paper-based system.
Manual accounts are generally easier to set up and can be more flexible than
computerised accounting. So, initial help may be required from the system
provider to set up accounting software and charge may be applied for this
service.
Disadvantages: -
Hiring an external bookkeeping service can be costly for smaller companies.
When hiring a bookkeeper, then you’re handling over some control. You’re
placing your trust in a stranger.
Human errors can cause a misrepresentation of a company's financial position
17
6.0 RECOMMENDATION AND IMPROVEMENT
The alternative solution that should be adopted was setting up a good accounting
software system to keep all business accounting program records was well organized.
Solution of the major problem which is financial problem can be done over a long
period of time. Business account was important to detect the amount of cash flow was
balance with the input and output of the business. Financial problem is the most important
that needed to be improve to produce a well-being businesses. Therefore, accounting program
are well organized and improve the efficiency of financial matters in Sinar Saujana Hiasan
Lampu Enterprise.
Firstly, Sinar Saujana Hiasan Lampu Enterprise should setting up the record for the
product and sales as using computerized methods. This is one of the important accounting
system software to identify the sales forecast within monthly or annually. The records should
include the supplier’s record, the product record and price and other information that was
important towards the financial properties. For example, Sinar Saujana Hiasan Lampu
Enterprise can apply UBS (User Business System) software which was one of the effective
program that gives more tally output and input. Sage UBS has been offering innovative and
localised accounting solutions to more than 200,000 customers in Singapore and Malaysia. It
have grown from strength to strength and established ourselves as a leader in businesses
software solutions for small and medium-sized enterprises (SMEs). Sage UBS products are
supported by a vast network of over 50 businesses partners and 400 associates across
Singapore and Malaysia, providing our customers with the quality and choice of services they
need. The product also keeps in constant touch with developments both in Singapore and
Malaysia and in the global businesses software industry through its parent company, The
Sage Group plc (Sage UBS, n.d). Therefore, the record was not easily misplaced and it saves
a lot of time compared to manual which simultaneously done by the software.
Next, setting a good accounting system software is a must for all businesses even
though it was Enterprise or Sdn. Bhd. Enterprise does not have many taxation compared to
Sdn. Bhd. Setting a good account system will help the general manager to overcome the
shortness of the cash flow and the budget for a particular year. We can predict the balance
sheet which are balance or not due to the good accounting system. Even though accounting
system was quite expensive but it helps in many things especially when applying the loan for
a businesses. Good accounting system are needed to been applied in all businesses due to
18
build a new future of business without a corruption. All record are managed by the person
who assigned for the specific accounting system that prevent losses occurred by the hand of
the inside people in the companies. This should be implemented in the businesses and
probably it will give the positive impact beside of low risk of error in accounting software
and it saves a lot of time compared to manual book keeping accounting.
19
7.0 REFERENCES
Aman Shah, Sarimah Hanim, Shafie, Sharida Zaina, Teik Lan, Cecilia Soon, (2016).
Polytechnic Series: Entrepreneurship 4th Edition. Shah Alam: Oxford Fajar SDN.
BHD.
Bluest, K. (n.d). What Are the Advantages & Disadvantages of Bookkeeping? Retrieved from
azcentral: https://yourbusiness.azcentral.com/advantages-disadvantages-bookkeeping-
4994.html
GOBankingRates Staff. (April 29, 2011). Pros and Cons of Getting a Separate Business
Checking Account. Retrieved from GOBankingRates:
https://www.gobankingrates.com/banking/checking-account/business-checking-
account-pros-cons/
IRCHAdmin. (January 2, 2018). 7 Tips to Help with Business Financial Record Keeping.
Retrieved from INFORMATION REQUIREMENTS CLEARING HOUSE:
https://irch.com/7-tips-help-business-financial-record-keeping/
Sage UBS, (n.d). Why choose Sage UBS? Retrieved from, https://www.sage.com/en-
my/products/sage-ubs/
State Government of Victoria. (August 27, 2019). Records management for small business.
Retrieved from BUSINESS VICTORIA: https://www.business.vic.gov.au/money-
profit-and-accounting/financial-processes-and-procedures/records-management-for-
small-business
Interview:
Ani binti Ahmad, (October 11, 2019). Case study about business plan and business
opportunity. (Interview)
20
APPENDICES
21
Figure 4.0: Front View of Sinar Saujana Hiasan Lampu Enterprise
22
Figure 6.0: Ceiling Light
23
Figure 8.0: Electrical Wiring Services
24