CHAPTER 1: INTRODUCTION

1.1. INTRODUCTION

In our economic system there is an urgent need for product quality and sustainability.
This need is in the face of a growing destruction of non-renewable resources and the
ceaseless degradation of the environment. It is based on wealth economics trading in
new products to continue expanding well-being while limiting the ecological footprint
including environmental effects, energy and material consumption, emissions all
along the product life cycle. The goal of this work is the technical, ecological,
environmental and social examination of the life cycle of traditional industry products.

A clothing boutique different from a normal retail clothing store in that sells to
a very specific niche market. The demographics for this type of store is naturally
defined. As such its marketing plan must be carefully. People engaged in the retail
clothing industry are involved with buying products, merchandising them and selling
them to customers. Retailers often learn to market their products effectively through
such techniques as print and electronic advertising. Managing the sales staff and
servicing customers are also important duties in the retail clothing industry.

The importance of having a customer-focused approach to doing business is

emphasized by Blumenthal (2008) “good customer service is a critical differentiator
for organizations and it offers a strategic competitive advantage to those enterprises
that embrace it and make it central to their product offering”. In a survey done by
Bernd Schmitt in (2002), customer focus was identified as the single most important
differentiator between the best and worst companies in an industry. Despite this
knowledge, many companies still fail to deliver an exceptional experience to the
customer.

Consumer behaviour research is the scientific study of the processes

consumers use to select, secure, use and dispose of products and services that
satisfy their needs. Knowledge of consumer behaviour directly affects marketing
strategy. This is because of the marketing concept, i.e., the idea that firms exist to
satisfy customer needs (Winer, 2000). Firms can satisfy those needs only to the
extent that they understand their customers. For this reason, marketing strategies
must incorporate knowledge of consumer behaviour into every facet of a strategic
marketing plan (Solomon, 2002). There is a widespread recognition that consumer
behaviour is the key to contemporary marketing success.

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1.2. PROBLEM STATEMENT
Competition is also growing within the industry because of the large number of
players entering Malaysia market both from national and international levels. The
changes in the behaviour of consumers in turn have impact on the industry directly or
indirectly. In order to attract and retain customers, the companies have to come up
with various business strategies. To plan a successful business strategy, it is very
much necessary to understand the factual changing patterns of consumer behaviour.
Like many other items, apparel products are composed of many physical
characteristics, which are perceived differently by various consumers.
When considering a product purchase, consumers tend to compare and
contrast alternative products made of different attribute combinations. Their
preferences for items of apparel may depend on the joint influence of price and
product attributes such as quality, style, and brand. Past studies have indicated that
the apparel store format and store ambience are also important in attracting
customers. Since, apparels are shopping goods, consumers usually spend a
considerable amount of time in selecting and buying apparels. This often includes
visiting multiple apparel outlets and comparing different brands based on the quality,
design and fittings.
Besides that, in these modern times it is more and more difficult to become
and stay competitive in the business environment. Customers have increasingly
more product. The problem with Anggun Hijab, people though it’s so expensive
compare to others meanwhile it’s really worth to having it as they using the most
good quality fabric and the design based on what Muslimah needed. Furthermore,
Anggun Hijab still new and there’s not so many publishing about it. So it will focus on
how to increase the levels of brand awareness among the customers. Also, this
situation analysis would be on the perceptions of society especially woman or girl
towards the target audience of this brand that actually can be wear by everyone, not
only business women or high class worker only.
Thus, the company also have a problem how to manage and marketing their
product to the customer both domestically and abroad. This is because the company
have not many employees for marketing the product and many of the employees not
like the company environment. So, the harmonization of methods and employees to
the continuous improvement activity in the case company. The poor level of the
continuous improvement activity or the lack of it can be considered to be lost
opportunities to utilize the valuable know-how which a large number of the
employees of the case company possesses.

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1.3. OBJECTIVES AND SCOPE

Based on the statement problem of the company 'Anggun Sdn.Bhd,' this study will
help us to identify the objectives and scope for solve that problem. The focus of the
study is:

i. To understand the factors influencing buying behaviour of customer.

ii. To analyze how to improve the profit of company and manage the product.
iii. To create a collective framework for continuous improvement activities in all of
the units of the case company.

The scope of this study about the product and customers. For example, the
company must be know the design of the product based on customer wishes. Beside
that, scope management of the product and environment in company also discuss for
this research. An important benefit of the continuous improvement activity is the
increase in the commitment of the employees to the company. Employees feel that
they have an influence in their own work and working environment. Therefore, they
actively think and invent better operating methods (Singh & Singh: 2009)

1.4. LIMITATION AND CONSTRAINT

Every business operation has something inhibiting it from reaching its full potential.
Some condition exists that limits sales or production output. This limit or constraint
determines the maximum capacity of the system. By removing or improving the
single constraint, the system is elevated to a higher level of performance. This study
shown about the limitation and constraint of company 'Anggun Hijab Sdn.Bhd'.

1.4.1. Budgetary constraints

Gathering and processing of product and data can be very expensive. This company
may lack the expertise to conduct extensive surveys to gather primary data, whatever
the potential benefits, and also lack the funds to pay specialist market research
agencies to gather such data for them. In these cases, organizations may be forced
to rely on data that is less than ‘perfect’ but that can be accessed more cheaply. In
addition, this company also not have many budget to process their marketing such as
to oversea. Economic factors will also affect purchasing power and consumer
spending patterns. It should also be seen in the global economy whether inflation as

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 well as interest rates. For example, when a country is experiencing a recession, it will
indirectly impact negatively on entrepreneurs.

1.4.2. Time constraints

This organizations are often forced to balance the need to build up as detailed a
picture as possible regarding customer needs end so on against the desire to make
decisions as quickly as possible, in order to maintain or improve their position in the
market.

1.4.3. Lack of Employees

One of the limitations in this company about lack of employess. This maybe about
environment and also the payment. The most important aspect of the activity is that
every employee has the possibility to have an impact on their work and make
proposals which are also efficiently implemented. In addition, the goals must be clear
to everyone. According to Garrison (2009) and Beddows (2001), commitment can
mean additional work to the management and changes to operations, but they must
be accepted in order to achieve long-term goals.

1.4.4. Legal and Ethical Constraints

The Data Protection Act (1998) is a good example of a law that has a number of
implications for market researchers collecting and holding personal data. For
instance, researchers must ensure that the data they obtain is kept secure, is only
used for lawful purposes and is only kept for as long as it is necessary. It must be
made clear as to why data is being collected and the consent of participants must be
obtained.

Budgetary Time constraints Lack of Legal and

constraints Employees Ethical
Constraints

Chart 1: Limitations and Constraints

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 CHAPTER 2: CURRENT SYSTEM ANALYSIS AND REVIEW

2.1. COMPANY BACKGROUND

Company of “Anggun Hijab Sdn. Bhd’ is the organization of the latest hijab and veil
for muslimah especially in Malaysia. This company also according to the taste of the
society during the era of globalization. Despite the latest trends or fashion, the hijab
marketed by this boutique is still in line with the syariah and is tailored to the user's
convenience. This business can also help local people, especially the Malay
community in providing jobs. Previously, this company used the services of a few
sewing machines in the production of hijab and also give the lack of product to
produce the hijab. So, this time, the company would like to expand their sales due to
the relatively high demand for stocks such as use an automatic sewing machine
instead of a previously used manual.
Anggun Hijab Sdn. Bhd was established in 1 March 2012. The company's
main activities are the production of various sizes and types of hijabs. This company
is managed by Rohani Ahmad and also have 50 employees. A business coming
from an oriented family, it was only a matter of time that Rohani Ahmad would
eventually become an entrepreneur herself it is because she loved fashion and
had a passion for business so she combined the two and proceeded to set
up her own label. This company located at Ipoh, Perak. Besides boutiques and
vendors that sell Anggun Hijab, online sale also used by this company to be close to
their customers.
Anggun Hijab offered wide range of product to their customers. The product
segmentation help Anggun Hijab to understand and influence consumer buying
decisions and constitute a successful marketing campaign. Most design of Anggun
Sdn. Bhd is instant shawl. Simple but nice is a key element of the brand. Anggun
Sdn. Bhd always come up with the latest collection to add variation to an existing
collection. Their new collection is always a premium collection of more elegant.
Different design and use of high quality fabric become a factor that reinforces the
brand in the hearts of customers. Anggun Hijab always produce new collection follow
by the trend and market need to ensure sales momentum is constantly increasing.

5
2.2. CURRENT SYSTEM
This company constantly produce new design and always have a good promotion for
the old designs. This company use an approach to appreciate their customers by
make a huge promotion during year end sale which is they can buy the scarf at
combo deals. If the customer decides to buy more than one piece of scarf, they will
get more discounts. Anggun Hijab often facing an issue with plagiarized. However,
this company always come up with new collection so that they are not overtaken by
them and Anggun Hijab keep faster than plagiaristic. Thus, this company have many
competitors to sell this product such as Ariani, Nealofa, Duck and so on. However,
this company always positive thinking about the competitors.
Besides that, Anggun Hijab also make huge promotion during Hari Raya
Aidilfitri and AidilAdha because at that season, a lot of customers will buy the scarves
to be matched with Raya costumes. Other promotion is Anggun Hijab also make a
contest to all the customers who have instagram account, to make a short video
tower 5 pieces of different collections for one minutes duration. The winner of this
contest will get a new collection of scarf. But, this company have a problem when to
manage their product because lack of employees. A very important aspect that must
be considered when improving business processes is to test the impact of these
improvement initiatives on customer experience.
Meanwhile about the environment of company, the management is one of
them to solve this current system, The management have to allocate enough
resources, such as time, employees and financial support for the activity to be able to
function well. Pollit (2010) and Salaheldin (2009) argue that the commitment and
support of the higher management are the most important factors enabling
successful continuous improvement.
An important benefit of the continuous improvement activity is the increase in
the commitment of the employees to the company. Employees feel that they have an
influence in their own work and working environment. Therefore, they actively think
and invent better operating methods. Significant benefits which are achieved from the
CI activity also include cost efficiency and the proposals that make work faster and
easier (Jepson, 2010). For example, a large number of small ideas, ranging from
recycling screws to reducing a walking distance by 20 metres, have saved
companies a significant amount of money (Mini, 2004).

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2.3. SOLUTION MODELS (SWOT)
Islamic fashion trend nowadays give a big impact toward islamic fashion industry.
This trend is a give a good impact to change people towards Islamic Syariah. As we
know, Malaysia is among the populous Muslim nation so that fashion that conforms
to the Islamic dress code is a big business. Anggun Hijab for example, is among the
first who establish store and outlet for scarves, scarves and shawls that are for
Muslim apparel. For this study, solution model is used SWOT.

SWOT

STRENGTH WEAKNESS OPPURTINITIES THREAT

Chart 2: Solutions of Model

2.3.1. Strength
Anggun Hijab Sdn. Bhd had already opened up shops and outlets in strategic
location. For example, Anggun Hijab is located at Dataran Ipoh, Perak whereby it is
directly opposite to Ipoh Parade and near most of college consisting of youngster
and adults who want to look stylish. In Addition, Anggun Hijab creates specialty for
their customers such as act as consultant and advisor on how to style scarves.
Besides, Anggun Hijab offers customizing services in decorating and designing
scarves for customers who want to be different and also owning repairing service.

Then, strength of this company is also well-known with its updated scarves
design because new designs are incorporated every fortnightly. In terms of Anggun
Hijab personnel, they have a good work force this is because they use 1 personnel
for 1 customer. Thus, it will help to facilitate and cheers their customers. The
company offers products that suit all its customers. Although its ready-made scarves
face a tough competition with the rising number of ready-made scarves sellers,
Anggun Hijab also provides custom-made scarves services to cater to special needs.
The uniqueness in Anggun custom-made scarves lies on the fact that it uses
Swarovski crystals which make it more exclusives for its customers.

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 2.3.2. Weaknesses

Anggun Hijab is a newcomer in online service and online business. This company
also not have many employees and must be Anggun Hijab is still lacking in media
advertising promotion. In addition, Anggun Hijab do not have many branches and not
famous in our country. Anggun Hijab also products into a high range prices. In
addition to the allocation of a sufficient amount of resources to the activity, the
persons who are appointed must be active where the continuous improvement
activity did not work as well as it could have, because some of the continuous
improvement teams only seldom had meetings while some never had. Only a few of
the teams were productive in their development work.

2.3.3. Opportunities

Anggun Hijab should focused more in online service this is because nowadays is all
about technology that make much easier for customers. More focusing in updating
trendy design for scarves. Anggun Hijab should offer wedding ready made scarves.
Customizing scarves services that based on customer’s wants and taste preferences.
Besides that, this company should try to produce more products in middle-lower
range prices for lower income group. Then, this company can go global by
penetrating into other Islamic countries.

2.3.4. Threat

Currently, there are a lot of competitors exist in this scarves industry. As same as
Anggun Hijab, they also offered and produced a wide variety of scarves. Besides, the
small outlets and online shop services that use to sell scarves and sometimes act as
imitation against Anggun Hijab. It is a normal situation in businesses, but this
situation act as a threat through Anggun Hijab because they will compete with
businesses that imitate Anggun Hijab products. Thus, it will lead to weak product
differentiation. In order to handle and control this situation Anggun Hijab should come
up with some backup plan in limiting the number Anggun Hijab imitation products by
create something different towards this company products. The rising number of
other online scarves shops also threat for this company. A lot of products and
designs are imitated.

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 CHAPTER 3: IMPLEMENTATION STRATEGY

3.1. TEAM

To enable continuous improvement, the management must create an atmosphere

and culture where the employees are ready to develop operations (Hogan, 2009).
The activity must also be clearly understood by the employees, which means that the
operating models which are utilized, machines and equipment as well as rules are
clear to them. It is equally important that the employees are active and interested in
working in accordance with the models and instructions. In the same way, a team
must be managed effectively to expect the best from the team members. The team
leader plays an essential role in managing his team well. This company have 7 size
of team and must be responsible based on their units.

3.1.1. Size of Team and Their Specific Roles

No. Expertise/ Unit Specific Roles Size of

Team
1 Business Analysis Develops and maintains requirements 4 employees
documentation.
Uses information about user goals and 4 employees
2 Interaction Design behavior to design processes and functions
that help users interact with the system and
achieve their goals.
Focuses on developing inbound and 10
3 Marketing outbound strategies for gaining exposure and employees
attracting intended audiences to the product
4 Project Management Develops Project Plan, acquires project 4 employees
resources, and leads kickoff meeting.
5 Fashion Desigenr Focuses on the aesthetics of a user interface 4 employees
and any related materials by strategically
implementing typography, images, and colors
about the scarf.

9
 6 Sales and Service Provide sales and services to customers. 20
Manager Resolve and troubleshoot complex sales and employees
services issues of customers.

7 Financial Manager The executive who manages the financial 1 employees

matters of a business.
8 Operational responsible for keeping everything running 2 employees
smoothly and profitably.

Table 1: Size of Teams

3.2. TIMELINE

DIAGNOSING ACTION PLANNING TAKING ACTION

Identify or defining Considering alternative Selecting a course
a problem coursesd of action

SPECYFING LEARNING EVALUATING

Identify general findings Studying the consequence of

an action
I
Chart 3: Timeline Review

For timeline, first of all the company will be diagnosing when we must know about the problem
whether the product or employees. Example, this company have a problem about how to
manage the product and also had lack of employees to sell this hijab. After that, the company
find the solutions to solve their problem. Segmentation is a technique to identify and satisfy the
needs of specific groups of customers with similar requirements within a market.
Then, the company will be action such as promotions for hijab, online business, give the
pamphlet and also create a collective framework for continuous improvement activities in all of
the units of the case company. Last but not least, the company also must studying the
consequence of an action to analyse that action give positive or negative impact. Last, identify
general finding.

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3.3. IMPLEMENTATION

The measurement framework is broken down into a series of processes, which, in

turn, are composed of four main sub-processes that repeat to form a continual
improvement feedback loop (based on the Plan-Do-Check-Act cycle.

PLAN DO CHECK ACT CYCLE

Chart 4: Process Implementation

3.3.1. PLAN
First of all, is planning. The tuning sub-process is responsible for identifying
improvement opportunities and making recommendations for the subject process or
service being measured. Note that the tuning sub-process Focus initially on just
providing visibility into these problem more “reporting” than “analysis”. Think about
the business questions these problem intend to answer.

3.3.2. DO
The implementation sub-process is responsible for implementing the recommended
changes through normal change management processes. Note that the
implementation sub-process can also act as the entry point for implementing the
measurement program and framework. A new strategy means new priorities and new
activities across the organisation. Every activity (other than the most functional) must
be reviewed against its relevance to the new strategy. A good way of doing this is to
create a strategic value measurement tool for existing and new initiatives. Initiatives
should be analysed against their strategic value and the impact to the organisation.

3.3.3. CHECK
The company must check the strategy that try and force a new strategy into an out-
dated structure will find their strategy implementation eventually reaches a deadlock

3.3.4. ACT CYCLE

When goals are met, the company must analyse and results from this cycle become
input for the phase of the next A+ cycle.

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 3.4. REVIEW FRAMEWORK
3.4.1. TOOLS FOR REVIEW
ANGGUN HIJAB SDN. BHD

Balance Sheet

1 August 2018

ASSETS LIABILITIES

CURRENT ASSETS CURRENT LIABILITIES

Cash 2300.00 Notes payable 4500
Petty Cash 1200.00 Accounts payable 30,000
Temporary Investmen 15,000.00 Wages payable 7500
Account Receivable -net 150,000.00 Taxes payable 1500
Inventory 40,000.00 Warranty Liability 5100
Supplies 4800.00 Unearned revenues 1000
Prepaid Insurance 1,400.00 Interest payable 1500
Total Current Assets 214,700.00 Total Current Liabilities 51,000

Investments 45,000.00 Long-term Liabilities

Notes payable 10,000.00
Fixed Assets Bonds payable 350,000.00
Land 4,500.00 Total Long-Term Liabilities 360,000.00
Land Improvement 15,500.00
Buildings 236,000.00 Total Liabilities 411,100.00
Equipment (56,000.00) STOCKHOLDERS' EQUITY
Less: accum depreciation 550,000.00 Authorized Capital Stock
Total Fixed Assets (1,000,000 SHARES @ per 10,000,000.00
value RM 100
Intangible Assets Subscribe and paid up capital 100,000.00
Goodwill 100,000.00 Common Stock 100,000.00
Trade names 150,000.00 Preferred Stock
Patents 688,900.00 End. Balance Retained 200,000.00
Earning
Total Intangible Assets 938,900.00 Add.Net Income 3,000.000.00
Subtotal 3400,000.00
Other Assets 2,500.00 Stockholders Inquiry 1340,000,00
Table 2 : Tools for Review

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 TOTAL ASSETS 1,751, 100.00 TOTAL LIABILITIES 1751,100.00

3.4.2. REVIEW TIME FRAME

No. Promotions Month Jan- 14 Feb-14 Macrch14 April-14 May-14

of Company s
Weeks 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1 Give the
pamplet
2 Card
Business
3 Promotions
of price
4 Online Sales

3.4.3. REVIEW RECOMMEND AND SOLUTIONS FOR REFINEMENTS

Purpose: Validate decisions and finalize project structure

Tasks:
 Finalize ownership structure and project team identification responsibilities
 Finalize permitting (including environmental reviews), interconnection
 Finalize financing, and development costs

Table 3: Review Time Frame

Outputs:
 Proposed financing/commitments and organization structure
 Detailed economic models
 Vendors selected
 Completed environmental reviews and finalized permits
 Off-take and interconnection agreement
 Transmission finalized, if necessary

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 CHAPTER 4: PROJECT FINANCIAL

4.1. PROJECT BUDGET

ITEM FIXED ASSETS MONTHLY OTHER

EXPENSES EXPENSES EXPENSES
(RM) (RM ) (RM)
Land and building 80,000
Office equipment 30,000
Salary 50,000
Utilities 2,000
Business 220
Registration and
License
Promotions and 5,000
Advertisement
TOTAL 110,000 57,000 220

Table 4: Project Budget

PROJECT BUDGET OF PROMOTIONS

Types Quantity Price (Month)

Template 1500 RM 1500
Business Card 100 RM 1000
Ads Online 120 RM 500
JUMLAH RM 3000

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 CHAPTER 5: CONCLUSION

5.1. CONCLUSION

This research shows how the company of Anggun Hijab Sdn. Bhd. analyse the
problem and solve their problem. First of all, the manager must be know the objective
of company or product, so they can manage their organization. Example, as we know
this company have the lack of management commitment and many competitors in
industry of hijab such as Ariani, Nealofa, Duck scarves and so on. Tne important and
very essential conclusion of this research was to integrate the suggestion scheme
activities and the continuous improvement activity as separate methods into one
entity in the case company. This research is significant for the case company as with
the help of this research, the ways with which the company ought to collect, evaluate
and implement suggestions which its personnel have made to improve its business
activities, have been defined. The results of this research can even be exploited
generically.
Another factor supporting the use of the continuous operating model is the
empowerment of the personnel in decision making. According to literature, the
organisations ought to follow through an official empowerment programme in order to
succeed in this. Another factors included in behavioral segmentation is user status.
Every product has its nonusers, ex-users, potential users, first-time users, and
regular users (Philip Kotler& Gary Armstrong, 2005). The key to be successful is
carrying out different marketing strategies in order to keep the regular customers and
attract new or potential customers. Anggun Hijab already possessed about 30 hijab
collections. This company and the team keep trying to release hijab collection with
different design and in term of the quality of the fabric materials (such as wool chiffon
and Korean chiffon), the color selection and the usage of Crystalline or Swarovski
pearls on the fabric that differentiate Anggun Hijab with other hijab brands. They will
ensure that all the design can be used from young age till old age group.

15
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