FUNDAMENTALS OF ENTREPRENEURSHIP

(ENT 300)
CASE STUDY

COMPANY’S NAME:
DOORNUT

FACULTY OF MECHANICAL ENGINEERING

J4EM1105A

PREPARED BY:

NO NAME STUDENT ID

1 AELRED NGIGAP ANAK NAMBAR 2017301623

2 PUTERA NUR ALIFF BIN SHAMSHUL 2017339937
3 AIN ISLAH BINTI MOHD NOOR 2017310373
4 NUR AQILAH BINTI ADNAN 2017535517
5 NURLISA BINTI HAMZAN 2017368543

PREPARED FOR:
PN. NURUL ASRIN BINTI ROSLAN

SUBMISSION DATE:
26TH OF APRIL 2020
 CONTENTS
EXECUTIVE SUMMARY .................................................................................................... 1

1.0 INTRODUCTION............................................................................................................. 3

1.1 Background of The Study ............................................................................................. 3

1.2 Purpose of The Case Study ........................................................................................... 4

1.3 Business Problem That Project Was Created................................................................ 5

2.0 COMPANY INFORMATION ......................................................................................... 6

2.1 Business Background .................................................................................................... 6

2.1.1 Business Details ................................................................................................... 6

2.1.2 Nature of Business ............................................................................................... 7

2.1.3 Industry Profile .................................................................................................... 7

2.2 Organizational Chart ..................................................................................................... 8

2.3 List of Products ............................................................................................................. 9

3.0 BUSINESS STRATEGY ................................................................................................ 11

3.1 Strategic Location ....................................................................................................... 11

3.2 Consistent Client ......................................................................................................... 11

3.3 High Quality Products................................................................................................. 11

4.0 MARKETING STRATEGY .......................................................................................... 12

4.1 Products....................................................................................................................... 12

4.2 Place ............................................................................................................................ 12

4.3 Price ............................................................................................................................ 12

4.4 Promotions .................................................................................................................. 13

4.4.1 Seasoning Promotions........................................................................................ 13

4.4.2 Birthday Treats................................................................................................... 13

4.4.3 Mega Sales Promotions...................................................................................... 13

4.4.4 DoorNut Tuesday ............................................................................................... 13

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 4.4.5 Members-Only Promotions................................................................................ 13

4.5 Promotions Using Social Media ................................................................................. 13

5.0 OPERATIONAL STRATEGY ...................................................................................... 14

5.1 Manpower Planning .................................................................................................... 14

5.2 Process Planning ......................................................................................................... 14

5.3 Payment Methods........................................................................................................ 14

5.4 Operation Hours .......................................................................................................... 14

6.0 FINANCIAL ACHIEVEMENT .................................................................................... 15

6.1 Accumulation of Fixed Assets .................................................................................... 15

6.2 Asia Halal Brand Awards ........................................................................................... 15

6.3 Profits .......................................................................................................................... 15

6.4 Future Planning ........................................................................................................... 15

7.0 LIST OF STRENGTH, WEAKNESS, OPPORTUNITY & THREATS (S.W.O.T) 16

7.1 Strength ....................................................................................................................... 16

7.1.1 Variety of Menu ................................................................................................. 16

7.1.2 Reasonable Price ................................................................................................ 16

7.1.3 Delivery Services ............................................................................................... 16

7.1.4 Modern Payment Method .................................................................................. 16

7.1.5 Online Order ...................................................................................................... 16

7.1.6 Halal and Local Product..................................................................................... 17

7.2 Weakness .................................................................................................................... 17

7.2.1 Short Business Hour .......................................................................................... 17

7.2.2 Low Shelf Life ................................................................................................... 17

7.2.3 Unhealthy Food Menu ....................................................................................... 17

7.3 Opportunity ................................................................................................................. 17

7.3.1 Strategic Location .............................................................................................. 17

7.3.2 Got A Lot of Customer ...................................................................................... 18

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 7.3.3 Global Chain-store ............................................................................................. 18

7.4 Threats......................................................................................................................... 18

7.4.1 Demanding Customer ........................................................................................ 18

7.4.2 Technical Faulty................................................................................................. 18

7.4.3 Inconsistent Demand.......................................................................................... 18

7.4.4 Cleanliness ........................................................................................................ 19

8.0 ANALYSIS S.W.O.T ....................................................................................................... 20

9.0 BUSINESS PROBLEMS ................................................................................................ 22

9.1 Major Problems........................................................................................................... 22

9.2 Problems ..................................................................................................................... 22

9.2.1 Hygiene Violations on Premises ........................................................................ 22

9.2.2 Hire of Foreign Workers .................................................................................... 22

9.2.3 Recipes of Doughnuts ........................................................................................ 23

9.3 Alternative Solutions .................................................................................................. 23

9.3.1 Focus on Health and What Customers Want ..................................................... 23

9.3.2 Properly Trained Employee ............................................................................... 23

9.3.3 Introduce New Procedures ................................................................................. 24

10.0 RECOMMENDATIONS & IMPROVEMENTS ....................................................... 25

11.0 CONCLUSION ............................................................................................................. 26

12.0 REFERENCES .............................................................................................................. 27

13.0 APPENDICES ............................................................................................................... 28

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EXECUTIVE SUMMARY

The reality today, dessert has become an attraction for people. Various food innovations
have been created to attract customers to buy them especially for children. Big Apple Donuts
& Coffee and Dunkin's Donut are one of dessert company that make their brand well-known
to almost around the world including Malaysia.

A doughnut or donut is a type of fried dough confection or dessert food. The doughnut is
popular in many countries and is prepared in various forms as a sweet snack that can be
homemade or purchased in bakeries, supermarkets, food stalls, and franchised specialty
vendors. Doughnuts are usually deep fried from a flour dough, and typically either ring-shaped
or several shapes without a hole. Various toppings and flavourings are used for different types,
such as sugar, chocolate, or maple glazing.

In this case study, we have done some research and discover for more information and
knowledge regarding to donuts business. We have chosen Big Apple Donuts & Coffee and
Dunkin's Donut as a role for business plan. The reasons why we chose the business store are
due to business strategy, marketing strategy, operational strategy, and their financial
achievements.

Based on those companies researched, we have created a small company named DoorNut.
DoorNut, which is a coffee and donut restaurant, which was founded by Ahmad William and
began the company since 1974. In the years since, the company has expanded its business to
more than 800 over the country. And now, the brand has more than 800 outlets in Peninsular
Malaysia and also Sabah and Sarawak.

With some good business and marketing strategies, the company is doing great since the
company has a good strategic location which located in a mall that has heavily consumed
attraction. By using high quality products and affordable prices for the products, we are able to
keep customers and have consistent clients since most of customers are satisfied with our
products. To keep our clients, we also do some promotions on our products since people love
promotions and with their purchases, it can help our company to increase our monthly sales.

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 DoorNut has come out with good operational strategies which can lead our company to be
more successful by making sure that customers satisfied with our services and products. We
had planned the process of products well from the raw materials until products received by
customer and we receive their payments for products. Our company also use few methods of
payment based on customers preferences to make sure it is going to be a lot smoother so that
they can shift their money without any hassle.

There are some achievements on financial to this company such as received an award in
2018 and managed to get high profits every month which is a good achievement for this small
company. Besides, we have learnt a lot of important strategies and information in the websites
and based on financial book in order to stabilize the business.

Health issues is a major problem in our business of ice cream donut. As the risks of high
sugar consumption become more well-known, it may become more challenging for DoorNut
to sell it. We need constantly monitoring the amount of the sugar and sweeteners usage in the
process of making donuts. There are other problems on our business such as lack
communications skills of the foreign workers which causing difficulties for customers. We
have a plan to train our workers specially those who are new to this job.

An analysis had been made towards our business regarding its strength, weakness,
opportunity and threat. Through the observation and analysis, there are a few recommendations
and improvements need to be done in order to keep the donut ice cream business thriving
upwards on top of the chart especially among the competitors.

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1.0 INTRODUCTION
1.1 Background of The Study

Fundamental of Entrepreneur (ENT 300) is the course that faculties give and expose to
students in order to introduce them basic knowledges in business organization. In this
course, students need to prepare a case study to any company and business activities to get
the information and the problem faced by the company or the business. Next, student should
find the solution and improvement about the problem faced by the company or business to
be more effective and efficient. The positive impact of this case study is students can think
wisely and rationally in conducting a business and can make a good decision that gives
positive impact to the business. Other than that, students will also know how to run a
business operation. This case study is about our company which we are refer to Big Apple
Donuts & Coffee and Dunkin's Donut as a reference to create a new business based on
donuts.

Entrepreneurship is a process of innovation and new venture creation through four

major dimensions-individual, organizational, environment and process. According to the
evolution of entrepreneurship theory by Adam Smith (1776), an entrepreneur is a person
who acts as agents in transforming demand into supply. Joseph Aloysius Schumpeter
(1934) said that, an entrepreneur is an innovator. The economy moves through leaps and
bounds and the prime move is the entrepreneur through the process of creative destruction.
Entrepreneurship education gives benefits to students from all socioeconomic background
because it teaches student to think outside the box and enhance the talent and skill. Besides
that, it creates opportunity, ensure social justice, gain confidence and stimulates the
economy. It can develop skills feature innovation, motivation and more essentially risk
taking due to the high risk of creating something new such as starting a new business, create
an innovative product or offering a new service.

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1.2 Purpose of The Case Study

Nowadays, various productions and services have been impressively thrived along with
the modernization. In every sectors and industries, countless developments have been done
in order to improve the youth and economy growth. These developments causing a huge
impact and transformation not only on modern technology but also on producing many
successful businessman and entrepreneur. It has been proved that both businessmen and
entrepreneurs are the major contributor that successfully played their parts not only in
keeping up with the world’s economy growth, but also in improving human’s life. Even
though both businessmen and entrepreneurs are classified in economy major, we should
know and understand that businessmen and entrepreneurs are slightly different. This is
because entrepreneurs are known for their purpose that focusing on creating and producing
something that could help people in improving their life while businessmen are focusing
on selling things to gain profit.

The main objective why this case study needs to be conducted is to analyse things that
need to consider in order to become a successful entrepreneur in business activities and
how a company facing the problems. This is something that has been demonstrated by
company of Big Apple Donuts & Coffee and Dunkin's Donut which have proven that it is
one of the famous companies in foods and beverages sector in Malaysia and it is also has
been known by other countries. Other than that, this study also wants to know the best way
and how to make a good decision that gives good impact to the company for the better
future and achievement. Hence, the purpose we choose this business is due to the business
strategy, marketing strategy, operational strategy, and financial achievements.

As we know, the world is experiencing a catastrophe in which a virus outbreak called

COVID19 has affected the whole life of human in the world. Restricted Movement Order
(RMO) for Malaysia have been implemented. Therefore, we have taken the initiative by
obtaining information about the donut business through the website and online interview.
Tons of information regarding to business and entrepreneurship has been collected from
many sources. Most of the information was received through the company websites and
book research.

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1.3 Business Problem That Project Was Created Address

2.3.1 Health conscious

Certain people more prefer a healthy food rather than eating sweet
dessert every day.

2.3.2 Process of making the donuts

The process of making donuts is quite simple but they are need
some techniques and skills to get the fluffy donuts to fulfilled
customers's desired and satisfied.

2.3.3 Technology used in business

The technique used in making the donut is the od method.
Some improvement needed to produce multiple product at a
time.

2.3.4 Product oriented

People get bored of getting the same flavors of donuts all the time.
Hence, some innovations neeeded in making the difference donuts.

Figure 1: Business Problem That Project Was Created Address

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2.0 COMPANY INFORMATION
2.1 Business Background
2.1.1 Business Details

Business Name : DoorNut – Always more than donut

Address : Lot L2, Bandar Baru Uda, 81200 Johor Bahru, Johor.

Contact Number : + 603 3737 0688 / 0788

Operating Hour : 10:00 AM – 10:00 PM

Social Media : Instagram - mr.doornut

Website - https://www.doornut.com/

DoorNut is more than just donut.

It’s a point of view, a way of life.
It’s daring to be your best.
To break through barriers, obstacles, and challenges.
To achieve your dreams.
To make the world a happier place.

Figure 2: Ahmad William, DoorNut founder

DoorNut, which is the Malaysia coffee and donut restaurant was founded by
Ahmad William. He was born in Arau, Perlis in 1956 and raised in Alor Setar, Kedah.

DoorNut began in 1984 with a donut and coffee restaurant in Johor Bahru, Johor
called “Marvelous Donut”. After a brainstorming session with his executives, William
renamed his restaurant “DoorNut” in 2005 and now is operated in both restaurants and
shops concept in all nearby areas. In 2009, the first DoorNut franchise opened, and in
just 10 years, the number of restaurants had grown to over 50 shops.

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 In the years since, DoorNut has expanded its menu to include a wide variety of
food and beverage options to keep customers running all day. Day by day, DoorNut has
also become a leader in digital innovation. DoorNut Online allows customers to pay
right from the website with their virtual DoorNut Card.

Since 2009, the number of DoorNut restaurants has increased to more than 800
over the country. The company serves approximately 900 thousand cups of hot and iced
coffee every year, with standards for coffee excellence that are among the best in the
industry. And now, the brand has more than 800 outlets in Peninsular Malaysia
including Sabah and Sarawak.

2.1.2 Nature of Business

DoorNut, is one of the largest coffees and baked goods chains in Malaysia and
also known as DN. DoorNut offers a service that provides food and beverage services
such as donuts, bagels, other baked goods, and a variety of hot and iced beverages.

DoorNut which known for its coffees and donuts, has been expanding its menu in
recent years to include items from breakfast doughnuts and cakes to munchkins and
latte. The company released several new frozen beverages and sweet treats as it works
to continue to appeal its customers’ palates. Other than coffees, the chain also
presenting their fruited teas and smoothies which freshly brewed black or green tea
mixed with fruit juice.

2.1.3 Industry Profile

The objectives of DoorNut are to become a dominant retailer in the food and
beverage industry and provide high quality products and services to its customers. They
also aim to ensure the products are designed and manufactured in accordance with the
internationally recognized standards.

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2.2 Organizational Chart

OWNER
(DIRECTOR)

MARKETING FINANCIAL OPERATING SALES

MANAGER MANAGER MANAGER MANAGER

PRODUCTION RESTAURANT
MANAGER MANAGER

Figure 3: Organization of DoorNut

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2.3 List of Products

Table 1: List of Products of DoorNut Company

PRODUCTS DETAILS
1. Ring Donuts DoorNut provided such an amazing type of flavour of
1.1 Sugar Raised our original ring donuts just for our precious
1.2 Choco Almond customers. All these flavours created based on
1.3 Cookies & Cream Malaysians’ taste.
1.4 Black Forest
1.5 Cheezy Cheese

Figure 4: Choco Almond

2. Filled Donuts Filled donuts presented for someone who prefer a full
2.1 Bavarian Filled coverage of doughnuts without having rings in the
2.2 Boston Kreme middle. Our filled donuts can be considered so special
2.3 Peanut Butter Jelly because of the filling itself is so creamy and melting
2.4 Raspberry Filled in mouth.
2.5 Mr Happy
2.6 Sweet Candy

Figure 5: Peanut Butter Jelly

3. Ice Cream Donuts This special menu prepared with some flavours by
3.1 Choco Strawberry applying topping on top and ice cream in the middle
3.2 Choco Butter of two layers of doughnut which has been cut and
3.3 Vanilla Chocolate placed the ice cream in the middle which inspired by
3.4 Oreo Cream burger concept. This menu is a great combination
3.5 Sweet Mango since it is hot and cold at the same time. This menu
3.6 Creamy Mocha suitable for adult and children and great to be eaten in
3.7 Double Grape a hot sunny day.
3.8 Apple Vanilla
3.9 Choco Mango Ice
Cream
Figure 6: Choco Mango Ice Cream

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PRODUCTS DETAILS
4. Fancy Donuts Fancy donuts created based on our little customers
4.1 Gummy Drops preference since kids love fancy design of doughnuts
4.2 Chocolate Candy such as our gummy drops and chocolate candy.
4.3 Wormy Choc
4.4 Cinnamon Twist
4.5 Smiley Marshmallow Figure 7: Gummy Drops
5. Munchkins Munchkin food is a simple mesh design, this allows
5.1 Chocolate for babies to gnaw on foods safely. Baby can chew,
5.2 Carrot suck, and taste the whole food goodness, with only
5.3 Banana small, digestible pieces coming through which can
reducing the risk of choking.

Figure 8: Mix Munchkin

6. Hot Beverages There are also many types of hot drinks provided by
6.1 Latte DoorNut according to customers’ preferences. If
6.2 Mocha Swirl Latte customers like something classic yet unique, various
6.3 Caramel Swirl Latte types of coffee from our shop can a good suggestion
6.4 Cappuccino from us. While some will choose hot chocolate and
6.5 Hot Chocolate hot tea to start with a bright playful day.
6.6 Tea
6.7 Full Cream Milk
6.8 Teh Tarik
6.9 Espresso Figure 9: Cappuccino
7. Cold Beverages While cold beverages provided for someone who
7.1 Iced Coffee prefer to start their day with calm and relax by
7.2 Iced Bubble Latte enjoying our special smoothies and milky drinks.
7.3 Iced Caramel Latte
7.4 Cold Brew
7.5 Smoothie
Figure 10: Iced Latte

Table 1

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3.0 BUSINESS STRATEGY

DoorNut is a coffee and donut shop that has been operated since 2005. Nowadays, everyone
wants and worries of something better that will make their lives easier, either by completing
their daily or weekly basis.

3.1 Strategic Location

DoorNut is operated and located in the area that has heavily consumed attraction. This
is because of the location surrounded by many people and customers. The shop itself faces
people who walk around in the shop area that makes convenient access for the passing
crowd. In addition, the area is highly guaranteed to prosper in the next few years as there
are several investments and construction of new housing and educational center near to the
shop. DoorNut also operated in the shopping mall as a kiosk which also has heavily
consumed attention. This is because of the location surrounded by many people and
customers who comes to the mall to shop every day. Therefore, the communities and
consumers would also definitely prefer to try the services and goods of DoorNut because
of its strategic location.

3.2 Consistent Client

This shop works hard to keep a customer loyal to ensure they can have a consistent cash
flow throughout the years. Having a consistent client can also give the business a strong
reputation amongst other customers.

3.3 High Quality Products

This company is committed in providing its highly valued customers the highest quality
of services and goods. Ensuring every customer is happy with the services and goods is in
their corporate strategy. When customer is satisfied, for sure there will have a very good
chances of using the company’s services again.

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4.0 MARKETING STRATEGY

DoorNut is a doughnut shop which located at Johor Bahru, Johor. Nowadays, people tend
to find instant food which can be eaten right away and already cooked by the shop. This
opportunity can be used by providing people this healthy instant food which can be eaten every
time such as for breakfast, lunch, and dinner. Therefore, company will use all the media
platform to promote and advertise the product.

4.1 Products

This company can use the opportunity to advertise the product to the public since the
product is also in high demand because of people nowadays tend to find healthy and easy
to find food which can be eaten right away after they buy it.

4.2 Place

DoorNut which operated in a very strategic area will always surrounded by many
people since there many houses and schools nearby. When they need to buy something in
a shop nearby, they will look around most of the shops there since they are already in the
shops area. This behavior will always happen every day. DoorNut also operated as kiosk
in few malls since malls are the place where people shop every day and every time. . In a
crowded place like malls can attract customers to get to know our products more by
choosing a strategic area such as at the main entrance of the mall and at the food area such
as food court. And of course, the mall is highly guaranteed to prosper in the next few years
as there are more new construction of new housing. Hence, the communities and consumers
would also definitely prefer to try the services and goods from our company.

4.3 Price

The company has stated the price of the products which based on the current market
prices. This will ensure that they will not have any customers dissatisfied with their
services. The price offers to the customers are reasonable as it can be afforded by all
customers. For each doughnut, the price charge is minimum at RM 1.50 depends on the
types of the doughnut while for the drinks, it depends on the types of the drinks whether
cold drinks or hot drinks.

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4.4 Promotions
4.4.1 Seasoning Promotions

Every season, we release some new products but only for a limited time such as
for Christmas we release new drinks and some new flavors for our doughnut such as
snowy donut and frozen choc donut. Our discount promotion also applied on these
limited seasons.

4.4.2 Birthday Treats

Discounts given for those who has a DoorNut Membership Card on their birthday
which can get free 5 pieces of regular donuts once on their birthday month. Special
discount also given for purchases on their birthday month.

4.4.3 Mega Sales Promotions

There will be one day for every month, we will release special discount on a
random day which is decided to give 50% discount on our goods. This will encourage
people to approach and try our best products.

4.4.4 DoorNut Tuesday

Purchase one set of donut and drink and enjoy the second set for only RM 2.00
every Tuesday from 3pm to 6pm all year round.

4.4.5 Members-Only Promotions

Get members-only access to Exclusive DoorNut Deals and be one of the first to
receive latest updates on new promotions, giveaways, and contests.

4.5 Promotion Using Social Media

Even though the company has been operating for over a decade, they keep up with the
latest technological advancements and use the opportunity to promote their products and
services through the internet. In this digital age, people tend to go shopping online instead
of purchasing stuff from the store. But online shopping is superior to spending too much
time inside the store instead. This situation gave an idea for online promotion of The
DoorNut which can be purchase using online shop such as Instagram and our official
website. Discount promotion also can be done for online purchasing since too many
customers will look up on our products online.

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5.0 OPERATIONAL STRATEGY
5.1 Manpower Planning

DoorNut which is a small kiosk shop have quite few workers which can be divided into
two categories, which is office workers and general workers. Office staff rely primarily on
the administrative side of the business. They are responsible for company documentation
and monitoring company’s expenses while the general staff are responsible for processing
the goods, maintaining high quality products, and communicating with customers. General
staff often have a duty to operate the vehicles, either to collect waste or delivering products.
By having a few workers, the workload becomes significantly easier and would not cause
any dissatisfaction among workers.

5.2 Process Planning

Ingredient measured
Ingredient prepared Frozen doughnut
based on recipes by
based on menu sent to the shop
company

Company receive Doughnut been Customer order the

payment cooked doughnut

Figure 11: Process Planning

5.3 Payment Methods

DoorNut allows customers to use any acceptable way in order to pay for the charges
either by cash or debit and credit card. Customers also allowable to pay using e-wallet such
as TnG Wallet, GrabPay, BoostApp, and any other e-wallet. It is going to be a lot smoother,
because it makes consumers shift their money without any hassle.

5.4 Operation Hours

DoorNut restaurants open and operates at 10 am until 10 pm every day. In malls,

DoorNut will also open at 10 am until 10 pm since malls usually runs at 10 am. This shop
will always open based on the malls’ time because of the shop is operated in malls.

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6.0 FINANCIAL ACHIEVEMENT
6.1 Accumulation of Fixed Assets

The company has been in the business for 15 years, enabling the firm to allocate enough
capital to procure the necessary machinery & equipment needed to run its operations
smoothly. The company are restrained by its limited working capital due to the nature of
the company. Nevertheless, the company continues to expand by raising additional money
to purchase additional ingredient stocks and ensure the quality of its operations.

6.2 Asia Halal Brand Awards (AHBA) 2018

In a Gala Dinner which held at Shangri-La Hotel Kuala Lumpur 2018, The DoorNut
has been awarded the Asia Halal Brand Awards (AHBA). The objective of the award is to
recognize and promote prominent halal brands in Asia. The prestigious recognition is a
testament of the world-class Halal expertise we have in place, and it have strengthened their
position in the market. AHBA is also supported by Jabatan Kemajuan Islam Malaysia
(JAKIM) and the Halal Development Corporation (HDC).

6.3 Profits

Based on the analysis of the company profiles, the company was going very well.
Customers also offer positive reviews and regularly buy our goods. The most important
things about running a business is to provide a good services and goods, so that clients can
return and even promote to their family and friends. Amount received per month is so much
more than the modal used for the products and after being deducted for workers salary,
electricity bills, and any other additional bills. This means that the profit collected per
month is in a huge amount.

6.4 Future Planning

In the future, the company plans to expand the business by adding more branches in
Sabah and Sarawak and also some near countries such as Brunei and Singapore. It is now
focused on saving in order to open new branch in Sabah and Sarawak and boost services
by providing extra facilities to ease customers works.

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7.0 LIST OF STRENGTH, WEEKNESS, OPPORTUNITY & THREATS (S.W.O.T)
7.1 Strength
7.1.1 Variety of Menu

DoorNut offered their customers the unforgettable and savoury taste of the
doughnut. The concept of doughnut ice-cream will surely make customers enjoy the
doughnut more. Especially during a hot day. Nothing can beat the combination of
sweetness and a cold doughnut. For those who prefer the traditional type of doughnut,
we also offer those type of doughnut for our customer, with variety of flavours and
colours to choose from.

Not only limited to doughnuts, but our menu also includes drinks in their menu
that can be purchased along with the doughnut and other foods.

7.1.2 Reasonable Price

With such an affordable and reasonable price, surely customers will not be
burdened with the best price offered to them. Customers can repeat their order without
having to spend a lot of money to experience a good quality taste of food at DoorNut.

7.1.3 Delivery Services

With a collaboration with a few food deliveries companies such as FoodPanda

and GrabFood, our products can be delivered directly to customers without having
customers to come to our shop.

7.1.4 Modern Payment Method

In this digital era world, we also provide our customers with various choice of
payment method. They can either choose to pay cash or with our partnered online
payment services like GrabPay, Boost, TnG Wallet, which undoubtedly more secure
and fast.

7.1.5 Online Order

DoorNut customers will be given an option for online order in case they do not
want to walk-in into our shop. Surely this method will ease the customers and they can
comfortably order whatever they want easily from DoorNut official website and their
favourite doughnut will be delivered to their front door.

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 7.1.6 Halal and Local Product

According to the data, the population of Muslim in Malaysia is 19.5 million, or

61.5% of the population. Being a Muslim surely required the food to be eaten contain
no non-halal ingredients. Muslims customer can surely enjoy the foods without
worrying about the type of ingredients used in the foods because DoorNut owner itself
is a Muslim himself and their shop also has a halal certificate from JAKIM.

Being a local business will surely give more benefits to the customer and our
nation, such as better customer service besides improving Malaysia’s economy.

7.2 Weakness
7.2.1 Short Business Hour

Nowadays, there is plenty of shops that open 24-hours. If DoorNut wants to

compete with other competitors, they can try extending their business hour to 24-hours
business. This will be challenging, but it can help to improve their business because
customers can go to their shop any time especially young people and busy workers.

7.2.2 Low Shelf Life

The problem with doughnut is that they must keep it fresh to present its high-
quality taste. However, this may be quite challenging because doughnut cannot be kept
for a long time. Additional cost must be considered to add a suitable machine or
technology to keep the doughnut fresh all the time.

7.2.3 Unhealthy Food Menu

Most of the menu in the shop is certainly unhealthy for customers. This can be
harmful to customer’s health if they eat this food without control. DoorNut can innovate
their foods and drinks by trying to reduce the number of unhealthy ingredients in it.

7.3 Opportunity
7.3.1 Strategic Location

Our shop located at a strategic location which is in the urban area. This will help
our business expand more and this will be an opportunity for us to attract target
customers that live and work in that area.

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 7.3.2 Got A Lot of Customers

Since the food is cheap and unique, many customers that come to the shop
especially kids and teenagers. There were also many regular customers that come to
DoorNut surely because they satisfied with the excellent services that the staffs
provided and the high-quality food that were offered.

7.3.3 Global Chain-store

Seeing that our business is doing well in this country, it is not impossible that in
the future DoorNut can open their chain-store in other countries. Starting from our
neighbours, Singapore and Brunei will be a good start because these mentioned
countries is near to Malaysia.

7.4 Threats
7.4.1 Demanding Customer

There are various types of customers behaviour that come to DoorNut. One of the
most challenging customers for DoorNut itself is demanding customers. This type of
customers must be handled nicely by the staffs in order to avoid other problem that can
affect the rating of the shop.

7.4.2 Technical Faulty

Technical faulty is one of the threats that DoorNut needs to face. Problems such
as machine breakdown or website down or crash are a threat that DoorNut needs to
prepare. Proper guidelines must be prepared and the person in charge must be
responsible for the scheduled inspection so that this kind of problem can be avoided.

7.4.3 Inconsistent Demand

Problems with opening a food-based shop is it inconsistency of demand from the

customer. There are several factors that will affect the demand for the product, such as
time, location, income of targeted customers and others. For example, the demand for
doughnut may increase in weekend compared to weekdays because people spend more
time shopping and go out more in weekend than in weekdays. This will become a threat
to business if there are no proper planning to overcome this problem.

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7.4.4 Cleanliness

Cleanliness is the most important part that need to be considered. Although proper
guidelines had been given to the workers, in order to avoid these related problems in
the future, we shall always remind our employees to take serious of this matter or else
they would face the consequences if they fail to do so.

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8.0 ANALYSIS S.W.O.T

The good food quality offered by DoorNut and great customer service are certainly the
reason why the shop gains a lot of customers every day. The variety of menus and halal foods
surely make the customers love buying from DoorNut. The great customer service also what
makes customers enjoy buying food from the shop and earn a lot of repeats and loyal customers
who satisfy with the efficient services that were provided. From various ways of ordering the
food to various way of payment method surely ease the customers and make customers happy
which then will lead to positive reviews and feedback from customers.

There are a lot of improvements that can be made by DoorNut in order to maintain a good
image and increase their profits in the future, such as healthy menu. If we can add this criterion
into our business, it certainly will give benefits to customers, because not only they can enjoy
the savory taste of the doughnut, they also can reduce the risk of getting a harmful disease such
as obesity and others in the future, if they consumed the food excessively.

To increase the quantity and quality of food and drinks, an investment can be made to buy
and upgrade suitable machinery and tools to preserve the high-quality taste of doughnut and
other foods as well.

Due to its good marketing and customer service, DoorNut has successfully opened a lot of
its chain-store across Malaysia. If we continuously excel in our performance, it will not be
surprising if one day we will manage to open chain-store across the world. There are a lot of
opportunities to go into the global market because according to the data, there will be a rise in
demand of halal food in the future. This is due to the increase of Muslim population globally
and the interest from non-Muslims, for food from the halal-based shop. Halal food is
undoubtedly safer in terms of the ingredients used in the foods and the way of making it. This
is because the owner must follow the strict and proper guidelines before obtaining the halal
certificate.

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 Lastly, there are many threats that DoorNut need to deal with, such as customer behavior
and inconsistent demand. The problem with opening a food-based shop is, customers will give
a lot of complaints if the food and services provided are unsatisfying. If this problem does not
settle properly, it will affect the shop image and reputation.

Demand for food may vary depending on the situation. Considering every factor such as
geographic location, condition of the economy. The demand will increase and decrease as time
goes. For example, during this Covid-19 pandemic, many local businesses were affected
because of Movement Restriction Order that was being implemented by the government.
Resulting in slow demand for food because customers cannot go out to buy the food. However,
thanks to the delivery option provided by DoorNut, the demand for foods from their shop is
continuing but not as much as before the pandemic.

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9.0 BUSINESS PROBLEMS
9.1 Major Problems

Health issues is a major problem in our business of ice cream donut. As the risks of
high sugar consumption become more well-known, it may become more challenging for
DoorNut to sell it. Even though these treats are delicious, it is hard to argue that they are
healthy. To be fair, this has been a challenge for the donut purveyor for quite some time,
such as low-carb diets have been around for more than a decade. Yet it remains a persistent
threat, nonetheless. And if more studies show additional negative effects of high-sugar
diets, it could become more of an issue. Moreover, Malaysia is a country that puts hygiene
as a serious matter as their religion (most are Muslims) told them to. It is also important for
food not to only be Halal, which is free from forbidden ingredients, but also be ‘Toyyiban’,
which means something that is good for eating.

9.2 Problems
9.2.1 Hygiene Violations on Premises

Nowadays, many outlets in Malaysia are violating the Malaysia Halal

Certification Procedure Manual and Good Manufacturing Practice (GMP) involving
hygiene from The Islamic Development Department (JAKIM). This causes JAKIM to
withdraw the Halal certificate through it was not due to any misuse of impermissible
(haram) substances in the ingredients used in their food. Regarding this matter,
customers were unhappy with the business’s lack of transparency, since it did not
immediately update to their customers either Halal certificate was approved or not.

9.2.2 Hire of Foreign Workers

Foreign worker usually lacks communication skills. Hence, it will cause

difficulties for customers to interact with employees in charge. Language barrier
between staffs and customers lead to inefficient service in DoorNut restaurant,
especially when customers receive wrong order due to miscommunication.
Furthermore, hire of foreign workers may causes customers to become skeptical in level
of cleanliness in their restaurant. Difference countries have different lifestyle. For third-
world countries, it is usually said that they did not stressed on hygiene issues. People’s
perception towards third-world countries such as Bangladesh creates trust issues
towards DoorNut’s foreign workers.

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 9.2.3 Recipes of Doughnuts

Misusing a recipe can make a dessert tasteless and unresponsive. We will lose our
customers if they are not satisfied on our donuts. Customers are likely criticizing the
dessert and compared it with other outlets. Therefore, it will cause a decline in
marketing and profitability.

9.3 Alternative Solutions

9.3.1 Focus on Health and What Customers Want

Health issues play an important role in our diet or nutrition. The good diet can
keep a person from getting chronic illnesses such as diabetes, hypertension and heart
disease. We need constantly monitoring the amount of the sugar and sweeteners usage
in the process of making donuts. This is because we are always looking after the welfare
and health of our customers. The different flavors also play an important role as these
differences making the customers’ experience getting better.

Advantages:

• Customers can choose any kind of donuts that they want

• Increasing health by reducing sugar levels in donuts

Disadvantages:

• A lot of works and process need to be done

9.3.2 Properly Trained Employee

The Human Resources Department of DoorNut should work on training

programmed on employee, especially those who are new to this job. Training
programmed are well-known of its capability to change employees’ attitude, help to
develop their skills ad also increase their knowledge. Role playing would have been the
best method for restaurant employees. Supervisors need to show how to work on a
hygiene environment and always keep their kitchen clean.

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Advantages:

• Attain skilled workers

• Increase workers productivity
• Workers know their job scope

Disadvantages:

• Use of supervisor/trainers’ time

• Short training programmed leads to limited knowledge shared
• Workers’ attitude is almost impossible to change

9.3.3 Introduce New Procedures

New procedure such as 5S should be introduced. 5S is systematic approach to

workplace organization and it is about efficiency, competitiveness and survival. The
five pillars involve Sort, Set in Order, Shine, Standardize and Sustain. These words
came from Japanese words which are Seiri, Seiton, Seiso, Seiketsu and Shitsuke.
However, most company add on one more pillar, which is the sixth pillar Safety
Practice of 5S or 6S may increase high quality of service in DoorNut and as the
important thing that we need to aware about the safety during working.

Advantages:

• Lower costs
• Better quality
• Increase productivity

Disadvantages:

• Takes time to practice for 5S

• A lot of work to do when we follow each 5S procedures

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10.0 RECOMMENDATIONS & IMPROVEMENTS

Recommendations and improvements are important to make a business, or an organization

maintain their place in the market. With these, we can make the business much better in their
daily operation. It is unavoidable for DoorNut from having problems. We need our customers’
recommendations and need an improvement to make our company better than another.

The problem that we have face before is really a big issue in our country because in
Malaysia, we know that all people taking care of health especially Muslim takes good care of
what they eat, and our benchmark is on Halal certificate from JAKIM. It happened not because
of we put pork in our food but it because of the quality of dessert that we serve, either it has
nutrition or not and cleanliness at the workplace. In Islam, taking care of health and cleanliness
are very important.

The best alternative that we can took is we need to introduce new procedure to our
employee in every branch that we have. Introduce new procedure is we can shuffle the
procedure that we have and use before. For the quality of our donut, we can adopt the new
recipe to make a donut based on World Health Organization (WHO) suggest for the level of
taking sugar in food. If in our procedure before does not practice 5S concept. 5S, or any lean
system, helps to eliminate waste, streamline production, and optimize efficiencies. When we
adopt 5S thinking, we make a commitment to put safety, organization and effectiveness ahead
of production deadlines, profits and output. The result is always an increase in overall success,
though growing pains will occur as the processes are implemented.

As mention before, 5S concept is a systematic approach to workplace organization and it

is about efficiency, competitiveness and survival. The five pillars involve Sort, Set in Order,
Shine, Standardize and Sustain. These words came from Japanese words which are Seiri,
Seiton, Seiso, Seiketsu and Shitsuke. They also need to add on one more pillar, which is the
sixth pillar, Safety. Practice of 5S or 6S concept may increase high quality of service in our
company, DoorNut.

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11.0 CONCLUSION

After all the research, we come to conclude that DoorNut will be the successful company
of dessert in world. DoorNut will took pride in giving our consumer the outmost respect and
the best customer service we could provide. DoorNut competes with the competitors by
keeping their costs low, giving the customers the freedom to customize orders, fulfilling
customer orders in a timely matter, and keeping the quantity of the products up to par.

DoorNut uses the five dimensions when computing customer satisfaction. These five
dimensions include conformance to specification, how much the customer values the company,
fitness for use, support, and the psychological impressions consumers have on the company.
We concluded that DoorNut provides quality service to our consumer and tries hard to keep
our customers satisfied.

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12.0 REFERENCES
• Website of Dunkin Donuts
https://www.marketing91.com/swot-analysis-of-dunkin-donuts/
https://dunkindonutsmy.oddle.me/en_MY/
• Website of Big Apple Donuts and Coffee
https://bigappledonuts.com/
https://prezi.com/svh74gs_lbek/big-apple-donuts-coffee/
• Operations Management for UiTM Second Edition, Rosliza Md Zani et al, August 2019
• Operations Management for UiTM, Pre-University & University Series, Rosliza Md
Zani et al, November 2015
• Introduction to Entrepreneurship, Sodri Ariffin et al, July 2017

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13.0 APPENDICES

Figure 12: DoorNut Official Logo

Figure 12: Inside DoorNut

Figure 13: Dine in DoorNut

Figure 14

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Figure 15 & 16: DoorNut Official Website

Figure 18: DoorNut Official Instagram

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