Name: SIDHARTH TIWARI 1MBAC

Title of the case: THE JOURNEY OF BLITZ: CHALLENGES LIE IN RUNNING THE FAMILY BUSINESS

Topic: BLITZ CASE STUDY

Summary-
Hema - daughter of Encik Sittumalai (Father) and Puan Rani (Mother)
Hema was a teacher by profession. Hema’s mother started running a home based business
producing and selling homemade Indian cookies in the year 2005. (Cake)
Rani also started selling bags. The couple began to supply their products to the five main
Indian restaurants around Johar Bahru.
She named her business as BLITS. It was located in Johor Bahru. Her dream was to become
one of the biggest Malaysian Indian treat producer. Rani ( mother) used to manage all the
task since her husband was a chronic heart patient.
BLits primary products included cookies, pastries, snacks, signature cakes etc. She also sold
goody bags and exchanged gifts on special occasions - birthday parties and wedding. They
started supplying to 5 main Indian restraints around Johor Bahru. She brought lorry as the
business started progressing for the purpose of door to door delivery.
Problems started emerging in the business when Hema’s mother was diagnosed with colon
cancer and Hema had to look after the business.

Problems:
 Hema has no prior experience in running the business as she graduated with diploma in
education and was a teacher.
 Emotional instability of the family along with all the responsibilities.
 There was no definite structure for the shop because of which the work load was
increasing on each and every person.
 Since the mother left the business, there was major issue in the commitment with the
on time delivery of the products.
 No proper distribution system because of which their competition was earning more
profit than them.
 Declining sales as there was no proper marketing strategy in place.
 Insufficient workers - salary not paid since 2 months and had to work more without any
pay. As a result 2 out of 6 employees left.
 Loss of customers - 2 out of 5 major Indian restaurants were no longer associated with
Blitz.
SWOT Analysis-
Strength- traditional cookies, these items were all homemade, Blitz offered goody bags in bulk for
special occasions, parties, and marriages - Blitz also offered free door-to-door delivery within 20 km
where the journey was within 30 min.

Weakness- difficult for Blitz to apply for bank loans, increase purchase raw materials, no staff
benefits extra payment for OT, lack of manpower, no experience about business

Opportunities- Diversification of business, Innovative Marketing strategies, improved organisational

strategies

Threats- Competitor, Seasonal work, the rising cost of sugar.

Alternatives-

 One of the major issue is lack of Organization structure, which is causing issue in the
system maintenance along with employee roles. Preparing of OS would ensure that
the company will have definite structure which will help them to work under
guidance with having a common goal.
 Blitz did not put efforts in the Advertisement department which worked in the
favour of the rival and helped them to gain and cover more of the market ground.
The seasonal advertisement did not really help the company boost their sales which
has been their primary target since the beginning of the company.
 There was no proper documentation of the property and asset because of which
they were denied the loan and they are facing financial problems.
 Blitz used natural ingredients in all of their products which could be used as a USP
which would give them a competitive edge against MANGGALAM.

Conclusion- After the analysis of the case, there are few areas that need to be take care of
immediately such as Organization Structure, Marketing Strategy, Product Diversification.
Hema should seek for help from friends and family at this point of time in order restart and
shape the enterprise on her own terms. And hence forth have proper documentation of
everything associated to business from customer invoice to property papers. At this point
Hema should be strong emotionally as well as mentally along with this have patience, every
Manager should have patience in order to solve complex real world business problems.