Case Study

ACKNOWLEDGEMENT
First of all, the completion of this assignment was all because of the hard work and the
cooperation from all group members, Siti Maryam Munirah, Nurain, Nur Aiman Hanis, Alliyah
Nur Syazwani and Siti Wahidah Najwa. We are so grateful to have such hard working group
members despite their hectic schedule. We are also thankful to our family members, friends for
supporting and cheering for us to help motivate us. Also to Encik Hakim for being cooperative and
willing to spend his time with us to interview him and answering the questionnaire for us.
Next, we would like to express our utmost gratitude to our lecturer for this ENT530 course,
Madam Jannah Munirah Binti Mohd Nor for providing us guidance, support, assistance and
consideration during the process of completing this assignment. Without her guidance and
encouragement, we would never succeed to complete such an outcome for this assignment.
Last but not least, we would thank the Almighty Allah for giving us strength and His
blessing upon completing this task.
TABLE OF CONTENT
PAGE
DECLARATION FORM i
UITM INTELLECTUAL PROPERTY SUBMISSION FORM ii
ACKNOWLEDGEMENT iii
TABLE OF CONTENT iv
LIST OF FIGURES v
EXECUTIVE SUMMARY vi
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY 1
1.2 PURPOSE OF THE STUDY 2
2.0 COMPANY INFORMATION 3
2.1 BACKGROUND 3
2.2 ORGANIZATIONAL STRUCTURE 4
2.3 PRODUCTS/ SERVICES 6
2.4 BUSINESS, MARKETING, OPERATIONAL STRATEGY 9
2.5 FINANCIAL ACHIEVEMENT 12
3.0 COMPANY ANALYSIS 13
3.1 BMC PLOTTING TABLE 13
4.0 FINDINGS AND DISCUSSION 15
4.1 SECTION A: COMPANY BACKGROUND 15
4.1.1 FINDINGS ON SECTION A 15
4.1.2 DISCUSSION ON SECTION A 18
4.2 SECTION B: PROBLEM STATEMENT IN THE COMPANY
(SUPPLY CHAIN RISK) 19
4.2.1 FINDINGS ON SECTION B 19
4.2.2 DISCUSSION ON SECTION B 24
4.3 SECTION C: STRENGTH IN THE COMPANY 26
4.3.1 FINDINGS ON SECTION C 26
4.3.2 DISCUSSION ON SECTION C 30
4.4 SECTION D: CUSTOMERS AND REVENUE STREAM
& COST STRATEGY’S 33
4.4.1 FINDINGS ON SECTION D 33
4.4.2 DISCUSSION ON SECTION D 35
4.5 SECTION E: REVENUE STREAM: SUPPLY CHAIN
PERFORMANCE IN THE ORGANIZATION 37
4.5.1 FINDINGS ON SECTION E 37
4.5.2 DISCUSSION ON SECTION E 38
4.6 SECTION F: FIRM COMPETITIVE ADVANCE 40
4.6.1 FINDINGS ON SECTION F 40
4.6.2 DISCUSSION ON SECTION F 41
5.0 CONCLUSION AND RECOMMENDATION 43
5.1 CONCLUSION OF SECTION A 43
5.2 CONCLUSION AND RECOMMENDATION OF SECTION B 43
5.3 CONCLUSION AND RECOMMENDATION OF SECTION C 44
5.4 CONCLUSION AND RECOMMENDATION OF SECTION D 47
5.5 CONCLUSION AND RECOMMENDATION OF SECTION E 47
5.6 CONCLUSION AND RECOMMENDATION OF SECTION F 48
6.0 REFERENCE 51
7.0 APPENDICES 53
LIST OF FIGURES
PAGE
Figure 2.2.1 This figure shows an organizational chart of the organization. 4
Figure 2.3.1 This figure shows Ubi Pedas Basah chips that Tradisional Food 6
Industries produce.
Figure 2.3.2 This figure shows Kacang Salut chip that Tradisional Food 6
Industries produce
Figure 2.3.3 The figure shows various types of chips and snacks that are sold 7
in bulk packaging.
Figure 2.3.4 The figure shows a various type of chip and snack that sold in bulk 7
packaging
Figure 2.3.5 The figure shows various of dried fruit snack 8
Figure 2.3.6 This figure shows various types of chip in normal packaging. 8
Figure 2.4.1.1 It shows mapping of Tradisional Food Industries. 9
Figure 2.4.2.1 This figure shows FB Page of Tradisional Food Industries in 10
Facebook platform
Figure 2.4.2.2 This figure shows account Tradisional Food Industries on 11
Instagram platform
EXECUTIVE SUMMARY
For our case study, we would like to summarize Tradisional Food Industries, selling
various kinds of “kerepek”. This company is a big company and their products are well known in
their are. The company’s location is a strategic are which is located in the middle of the city.
Tradisonal Food Industries is surrounded by a residential park. With this strategic places, they can
easily grab variety kind of customers from different ages.
Based on our observations, we discovered that this company sells a variety of kinds of
‘kerepek’ that grabs the attention of all kinds of ages. They even outsource some of the product
from the suppliers to make their products known well.Despite that, this company has been
operating for over 20 years and has done a very good job in maintaining their sales throughout the
years and now they are still operating and managing to maintain their customers even in this
pandemic. They also manage to make profit during the pandemic without even closing their store.
We also had given out the questionnaire to observe how well this company has been operating.
In conclusion,through the questionnaire really helps us to gain the information needed and
to finish our case study. We manage to conclude and observe how a company operated during this
pandemic and how the company avoided the risks they normally encountered during their daily
operation.
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
General view of entrepreneurship is the ability of risk takers to generate their own empire
with the knowledge to create new ideas or innovators, and bring new ideas in the market by
replacing old with a new invention. However, in order to be a successful entrepreneur, they must
have a good management skills.
In this study, we will be focused on the supply chain management that is an important
element for having a good business. Supply chain is a combination of works that create a cycle
from the sources of material, supply of material that moves to the production part to produce goods
and their will distribute the goods that can generate sales. Management will help them to be
successfully managing the supply chains that are important to fulfil customer order. Moreover, an
efficient supply chain management can also reduce company cost of production.
In addition, this study will use Business Model Canvas (BMC) in order to track this supply
chain management of a company. BMC is used to describe the rationale of how an organization
creates, delivers and captures value. It shows that BMC can give a clear understanding in order to
solve this study.
Tradisional Food Industries is the company that has been chosen for conduct this study
which is major in local foods such as Kerepek Ubi Pedas Kering and Ubi Pedas Basah, Kerepek
Pisang, Kerepek Bawang and others that is establish since 1992. By facing Covid-19 Pandemic,
we will take a look at how this company handles their challenge in terms of supply chain
management to fulfil demand and customer order.
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1.2 PURPOSE OF THE STUDY
This study is conducting for the application of the theories learned by relating real
situations. In this study, the students are using the Business Model Canvas (BMC) to analyst the
management risk that occur in the company. The BMC are introduced by Alexander Osterwalder.
It is suitable with the Alexander Osterwalder mention that the role of of business model are to
capture, visualize, understand and communicate the business logic (Osterwalder, 2004)
Supply chain risk management are the process of evaluate, identifying and lessen the risk
of an organizational on their supply chain. This risk can occurs at any times and could involve
with a lot of costs if not find the solution immediately. This risk also can occur on behalf on the
supplier itself. There are different method that company can applied when it comes to selecting
their suppliers. It can be done in three stages of selection process that is formation of selection
criteria, determination of approved supplies and final supplier selection (Boer et al, 2001).
After the student identified the risk of supply chain from Tradisional Food Industries, they
can plotting the risk into nine block in BMC. This will testing the knowledge and skills of the
students to identify suitable risk that suit with the all the blocks. After that, they can start to analyst
the risk problem not only in management but also in operational of the business.
The outcomes from the analyst in BMC will give the student of the idea on how this supply
chain management are used based on the general knowledge of the company itself. Therefore, it
can increase the student knowledge and understanding on how to handle the management risk from
this analysis..
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2.0 COMPANY INFORMATION
2.1 BACKGROUND
Established back in 1992, Tradisional Food Industries was founded by a married couple,
Mrs. Hjh Normah Bt Abd Karim and Mr. Hj Mohd Nizam Bin Kamis. The name Tradisional was
intentionally spelt in Malay to keep their identity as Malaysian. It’s a business that started small
by selling homemade snack such as kacang salut tepung and ubi pedas basah at their home at
Taman Paroi Jaya, Negeri Sembilan. All the production processes were initially done at home. The
business finally registered as a sole proprietorship on 1994 by Mrs Hjh Normah as the owner and
had its own headquarter in a shophouse at 418, Jalan Cenderawasih 2, Taman Paroi Jaya, 70400,
Seremban, Negeri Sembilan but there was only production department and they only deliver their
goods to customers because they didn’t have a shop back then. Now, the business is managed by
their son, Mr Hakim as the successor of this business.
After the business started to hit big on 2007, they expanded their business by adding sales
department and hiring more workers. They also rented a shop under the name Kedai Kerepek Paroi
for customers to easily spot them. In 2019, the business got bigger so they rented another shop at
415 & 416, Jalan Cenderawasih 2, Taman Paroi Jaya, 70400 Seremban, Negeri Sembilan and this
time, not only they sell their own products, they also help selling products from new entrepreneurs
and small businesses. Now, they have over 50 workers that are working for them in both sales and
production departments.
During the Covid-19 outbreak on 2020, productions processes were slow down as some
suppliers didn’t accept orders at the moment. So in order to thrive their business, they still operates
like normal by selling the products that were able to be made but through online as shop is closed
because of MCO. And now that MCO is lifted, the business is going well like pre Covid days.
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2.2 ORGANIZATIONAL STRUCTURE
Figure 2.2.1 shows an organizational chart of the organization
Tradisional Food Industries are founded by a married couple, Hajah Normah bt Karim and
Haji Mohd Nizam bin Khamis. They later on continue to hold a position as operating manager and
financial manager. In the financial management department, they are led by Haji Mohd Nizam and
assisted by Nur Aini. The financial management are more focus on the financial of the company
and creates short and long term plans and strategies for the company. They are also involved to
handle the cash flow of the company. Haji Mohd Nizam as a manager must ensure that the
company finances are stable and have enough cash flow to operate the business.
Next is operation management. Operation management are managed by Hajah Normah and
Abdul Hakim as her assistance. Operating management are handled with the controlling the
process of production of the products. Operation management is also responsible for labor
efficiency and the quality of the raw material and products. As manager in operation management,
Hajah Normah are responsible to ensure the operation in the factory are run smoothly without any
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problem that can slow down the production of the products. She also needs to check the quality
control of the products so it meets with the customer requirement. Other than that, she and her
assistant, Abdul Hakim need to give training to labor if necessary to increase their efficiency in
the production process.
In the Kacang Salut and Ubi Pedas Basah production team, it consists of Noraida, Ros,
Fauziah, Sahariah and Yanti. They are responsible for the process of the products from raw
material to the finished product. They also need to control the quantity of material used and need
to take care of the machine operation so that it can be more efficient. Thus, it can meet a customer
demand for kacang salut and ubi pedas basah
Tradisional Food Industries sales team consists of six employees. They have Rosliza,
Azizah, Fahmi, Faiq, Hasri and Siti. They are in charge of making sales on Tradisional Food
Industries products and other products. They also need to entertain the customer when they need
help or inquiry about the products.
Last but not least, the repackaging team. In the repacking team, they have Hamidah, Salma,
Ridzuan and Zarina to help with packing or repacking the product. They need to check on the
quality of the repackaging for example the plastic bags. The plastic bag that has been used must
be durable and strong to ensure the product are not damaged. Moreover, they need to meet with
customer satisfaction such as on the quality.
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2.3 PRODUCT/ SERVICES
Tradisional Food Industries offer two main ‘kerepek’ that they produce, Ubi Pedas Basah
and Kacang Salut. Most of the customers came here for the original flavor of this product.
Figure 2.3.1 shows Ubi Pedas Basah Figure 2.3.2 shows Kacang Salut
Other than that, Tradisional Food Industries also sell various ‘kerepek’ and other products
that are likely to attract customer to came. The customers always refer to this company as ‘One-
Stop-Centre’ to buy snacks for their family members.
These are the list on various products that sold:
● Kerepek Ubi Pedas Kering

● Kerepek Pisang
● Kerepek Bawang
● Bahulu
● Serunding ayam & daging
● Keropok Lekor
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● Kuih Siput
● Dodol
● Kacang Tumbuk
● Dried fruits
Figure 2.3.3
Figure 2.3.4
Figure 2.3.3 and 2.3.4 shows a various type of ‘kerepek’ that sold in bulk packaging
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Figure 2.3.5 shows various of dried fruit snack
Figure 2.3.6 shows various type of ‘kerepek’ in normal packaging
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2.4 BUSINESS, MARKETING, OPERATIONAL STRATEGY
1. BUSINESS STRATEGY
Figure 2.4.1.1 shows mapping of Tradisional Food Industries
As for business strategy, Tradisional Food Industries (TFI) has great advantages in term of
geography. As can be seen in the maps,Tradisional Food Industries located right in the center. It
is surrounded by a residential park area that can also be assessed by walking distance. Within a
5km radius, Tradisional Food Industries was surrounded by schools, stadiums, mini markets, petrol
stations and even mosque. With this strategic location, Traditional Food will manage to grab
customers from various locations.
2. MARKETING STRATEGY
Initially, Tradisional Food Industries only marketed their products by providing door-to-
door samples. From there the product community begins to know their product.
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Next, Tradisional Food Industries uses social media platforms to promote their businesses
to create awareness and reach out to more customers. Using the Facebook platform, Traditional
Food Industries has created a page called Kedai Kerepek Paroi on September 26, 2012 to update
their potential customers about the product and show feedback from satisfied customers.
Tradisional Food Industries is also active on Instagram in mid-May to make engagement

with their followers and prospects. They believe that most of them are targeted customers who use
the platform to socialize. By creating and posting good content, it may help growing the brand
awareness and be the first snack shop that come to mind when customers want to buy snacks either
to serve for guests who came to their house or as goodies/door gifts in any special events or
occasion.
Figure 2.4.2.1 shows FB Page of Tradisional Food Industries in Facebook platform
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Figure 2.4.2.2 shows account Tradisional Food Industries on Instagram platform
3. OPERATIONAL STRATEGY
Hajah Normah binti Karim Haji Mohd Nizam bin Khamis, owner of Traditional Food
Industries, operates and controls self -employed with their son, Abdul Hakim. All production and
management are properly managed by the owner as it is still a small business. Every product that
has been produced will be carefully monitored to avoid any damage and impending loss. Hajah
Normah herself deepened her business knowledge to further expand her existing business. Since
the COVID 19 outbreak, Tradisional Food Industries has continued to operate despite their sales
declining from normal.
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2.5 FINANCIAL ACHIEVEMENT
Tradisonal Food Industries started operating from 27 years ago until now. Despite this fact,
their demand is increasing each year and they managed to gain a maximum profit of RM15,000
per month. Since they are operating in the early 90’s, they manage to save their expenses by
making production in their own home and delivering the product by themselves.
Instead of focusing their sales on various kinds of Tradisional Food Industries, In 2007,
this company opened a grocery store as their second income. This is also the reason why their sales
are not affected badly during this pandemic.
Having ups and downs in business is normal and the same goes to this Tradisional Food
Industries whether it is low risk or high risk. Since the COVID-19 pandemic started to spread in
Malaysia, it does affect the sales in the earlier stage of re-opening the Tradisional Food Industries.
Their sales are back on track when the government had loosened the SOP and citizens nearby
started to buy their product.
Despite all the risk, this firm did well in managing their finances especially in this pandemic
that is hitting Malaysia
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3.0 COMPANY ANALYSIS
3.1 BMC PLOTTING TABLE
Designed for: Designed by: Date: Version:
Business Model Canvas

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
B 1.1, B 1.2, B 1.3, B B 2.1, B 2.2, B 2.5, B C 1.4, C 1.5 C 2.2, C 2.6, C 3.1, C ● Wholesaler
1.7, B 1.8 2.6, B 2.7, B 2.8, B 3.2, C 4.2, C 4.3, C 4.4, ● Retailer
6.11, C 6.6 C 4.5 ● Special occasion
● Dropship
● People who loves to
eat snacks/instant
food
Key Resources Channels
B 3.1, B 3.2, B 3.5, B B 5.1, C 5.2, C 8.4
4.5, C 7.1, C 7.2, C 7.4
Cost Structure Revenue Streams

D 1.2, D 1.3, D 1.5, D 1.6, D 2.1, D 2.2, D 2.3, D 3.1, D 3.4, D E 1.1, E 1.2, E 1.3, E 1.5
3.5, D 3.6, D 4.1, D 4.2, D 4.5, D 4.6
Designed by: The Business Model Foundry (www.businessmodelgeneration.com/canvas). Word implementation by: Neos Chronos Limited (https://neoschronos.com). License: CC BY-SA 3.0
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The BMC or Business Model Canvas is a graphic representation of numerous variables
that visualizes the value of an organization (Alexander Osterwalder & Yves Pigneur, 2013). It can
be used as a strategy tools to help in developing new organizations and analyses business situation
in an existing business (Amanda Athuraliya, 2020). It provides an overview of how a business
management is doing and omit unnecessary details that will make people confused. It’s a one page
document with nine boxes containing the elements of a business which highlights important details
and is easier to understand.
There are 9 elements in BMC to describe and assess a business model which are
● Key partners
● Key activities
● Key resources
● Value propositions
● Customer relationships
● Channels
● Customer segments
● Cost structure
● Revenue streams
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4.0 FINDINGS AND DISCUSSION
4.1 SECTION A: COMPANY BACKGROUND
4.1.1 FINDINGS ON SECTION A
SECTION A: COMPANY BACKGROUND
Q1. Is your company connected with your supplier or producing goods or services in
Malaysia?
❑ Yes (1)
❑ No (2)
Q2. What is your organizational level? (Choose one)

❑ Chair, Owner, CEO, President (1)
❑ Director, Senior Manager (2)
❑ Manager (3)
❑ Executive Department (4)
❑ Other (5) __________ (Please state)
Q3. What is your functional area within the company? (Choose all that apply)
❑ General management (1)
❑ Supply chain management (incl. procurement, logistics, transportation) (2)
❑ Financial management (incl. accounting and I.T.) (3)
❑ Sales and marketing management (4)
❑ Production and manufacturing management (5)
❑ Engineering and product development (6)
❑ Human resource management (7)
❑ Other (8)
Q4. What is your functional area within the company? (Choose all that apply)
❑ General management (1)
❑ Supply chain management (incl. procurement, logistics, transportation) (2)
❑ Financial management (incl. accounting and I.T.) (3)
❑ Sales and marketing management (4)
❑ Production and manufacturing management (5)
❑ Engineering and product development (6)
❑ Human resource management (7)
❑ Other (8)
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Q5. What is your company's general sector(s)? (Choose all that apply)
❑ Non-durable goods or consumables (1)
❑ Durable goods (2)
❑ Capital goods (buildings, machines, heavy equipment, etc.) (3)
❑ Natural resources (4)
❑ Services, incl. software, IT, education and government (5)
Q6. What is your company's ownership? (Choose one)

❑ Sole proprietorship
❑ Partnership
❑ Private Limited Company
❑ Joint venue
❑ Subsidiary
Q7. What is your company's ownership? (Choose one)

❑ Fully Malaysian
❑ Fully Foreign
❑ Mixed, with majority Malaysian owned
❑ Mixed, with majority Foreign
Q8. The company... (Choose all that apply)

❑ Owns and operates its own production or development facilities in Malaysia (1)
❑ Sources suppliers from Malaysian companies (2)
❑ Sources suppliers from other countries (3)
❑ Source’s suppliers mixed (From Malaysia and other countries) (4)
❑ Other or none of the above (5)
Q9. Which categories of goods or services does your company source or produce in Malaysia?
(Choose all that apply) [The categories correspond to the official ones used by SMEs Corp]
❑ Agricultural and allied products (incl. meat, fish) (1)
❑ Ores and minerals (2)
❑ Leather and manufactures (3)
❑ Chemicals and related products (incl. pharmaceuticals, cosmetics) (4)
❑ Engineered goods (incl. transportation equipment, machinery) (5)
❑ Textiles and textile products (6)
❑ Gems and Our firmly (7)
❑ Handicrafts (8)
❑ Other manufactured goods (9)
❑ Petroleum products (10)
❑ Electricity, gas or water supply (11)
❑ Other products (12)
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❑ Transportation services (goods or passengers) (13)
❑ Travel, hospitality, tourism (14)
❑ Telecommunications, computer or information services (incl. IT, software, BPO, ITES,
media) (15)
❑ Construction services, incl. architecture (16)
❑ Insurance services (17)
❑ Financial services, incl. banking (18)
❑ Other business services, (incl. accounting, law, consulting, R&D, storage) (19)
❑ Personal, cultural or recreational services (incl. audio-visual, educational) (20)
❑ Government goods or services (21)
❑ Maintenance, repairs or manufacturing services (22)
Q10. What are your company’s annual (a year) sales in MYR (Malaysia Ringgit) ? (Choose
one)
❑ Less than RM 100 000
❑ RM 100 001 – RM 200 000
❑ RM200 001 – RM 300 000
❑ RM 300 001 -RM 400 000
❑ More than RM 500 000
Q11. How many persons does your company directly employ in your firm? (Choose one)
❑ None
❑ 1-10
❑ 11-100
❑ 101-1000
❑ More than 1000
Q12. Where are the locations of your major Malaysia suppliers and/or your major Indian
production facilities (incl. services)? (Choose all that apply)
❑ Central Malaysia (1) (Kuala Lumpur, Selangor)
❑ East Malaysia (2) (Kelantan, Terengganu & Pahang)
❑ North Malaysia (3) (Perlis, Kedah, Pulau Pinang, Perak)
❑ South Malaysia (5) (Negeri Sembilan, Melaka & Johor)
❑ Sabah & Sarawak (6)
Q13. For how many years has your company been sourcing or producing in Malaysia? (Choose
one)
❑ Less than 3 years (1)
❑ 3-10 years
❑ 10-20 years
❑ More than 20 years
❑ Don’t know
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4.1.2 DISCUSSION ON SECTION A
Tradisional Food Industries was set up on 1992 and have been operating for almost three
(3) decades now. It is now managed by Mr. Abdul Hakim Bin Mohd Nizam who is the son of his
predecessors, Mrs. Hjh Normah Bt Abd Karim and Mr. Hj Mohd Nizam Bin Kamis who managed
the business back then. The business was registered under CCM on 1994 as a sole proprietorship.
Sole proprietorship is a form of business which has only one person as the owner, who is fully
responsible and organizes anything regarding to this business. He is also personally liable to all
the gains and losses.
This business is owned by a fully Malaysian and is an agricultural company. The main
activities are producing snacks and sells them. They operate and produce their products solely in
Malaysia. But they outsourced the raw materials from suppliers that from Malaysian companies
and other countries such as peanuts, various kind of spices and cassavas. The production process
occurs always at night before the shop opens in the day so the snacks are still crunchy and long
lasting. The products were sold according to FIFO (first-in,first-out) method which means any
products that were made first will be sold first so that it can sustain the quality of the products.
There were almost 100 people working for them in both the production and sales
department because the business has gotten bigger for the past years. But according to Mr. Hakim
when the Covid-19 pandemic hits, they had to let go some of the workers because the production
process slowed down so they need less people to operate. Currently, there are more than 50 workers
in both departments which are enough manpower to do all the work. This business target customers
are those who want to buy snacks for celebration days or special occasions like Hari Raya, Chinese
New Year, Deepavali or even birthday celebrations. They also target people who want to give
snacks as door gifts during wedding ceremonies or any events.
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4.2 SECTION B: PROBLEMS STATEMENT IN THE COMPANY
4.2.1 FINDINGS ON SECTION B
INSTRUCTION SECTION B – SECTION F
You are now presented with 9 Element of Business Model Canvas (9) categories of elements that
could affect supply chain operations in SMEs Malaysia. Our firm ask how often any of these risk
elements may have affected your company for the past three years, what the resilience capabilities
may have been, whether any of four (4) mitigation methods helped to prevent or limit the
capabilities, and which of these disruptions you expect to encounter over the next three years.
There is also room to write in up to two additional disruptions or risks if you don't find them on
the list.
("Risk " can be defined as an unexpected event that throws the supply chain into minor or major
disorder.)
SECTION B: PROBLEM STATEMENT IN THE COMPANY (SUPPLY CHAIN RISK)

B.1 Supply Side Risk (BMC Main Business Partners)
In this past three years (Since 2019 -2021) was your supply chain effected by the supplier side
risk?
1 2 3 4 5
Very Low risk Low Risk Moderate High Risk Very High Risk
(Zero times) (1-3 times) (4-6 times) (7 -9 times) (10 or more times)
Risk Sources Risk Variable 1 2 3 4 5

Supplier Side B 1.1. Poor quality of supplies /
Risk B 1.2. Vague inspection/acceptance /
procedure of the Supplier
B 1.3. Our firm have a limited number of supplies /
B 1.4. Inflexibility of suppliers /
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B 1.5. Non availability of technical know-how such as /
method of production, requirement special
testing facility, tooling packing etc
B 1.6. Inability of the supplier to furnish /
drawings, data sheets etc
B 1.7. Sudden default of suppliers /
B 1.8. Dependency on single supplier for critical and /

long cycle time items
B 1.9. Frequent changes of critical material Suppliers /
B 1.10. Frequent delays in material supply lead-time /
B 1.11. Intellectual property risk /

B 1.12. Complexity of critical material /
B.2 Manufacturing side risk (BMC Key Activities)

In this past three years (Since 2019-2021) was your company affected by supplier manufacturing
side risk?
1 2 3 4 5

B.2 B 2.1. Disruption in production /
Manufacturing B 2.2. High level of process variation /
Risk B 2.3. Variability in production cycle time /
B 2.4. Inadequate production capability /
B 2.5. Inflexibility in Capacity /
B 2.6. Inflexibility in layout for free flow of /
materials
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B 2.7. Vague inspection and acceptance /
procedures
B 2.8. Frequent product recall process /
B 2.9. Sharing of design and other documents with /
suppliers which may lead to loss of core competency
B 2.10. Improper Handling/maintenance of strategic /
warehouses/inventory
B 2.11. Organization issues /
B.3 Demand side risk (BMC: Key resources)

In this past three years (Since 2019-2021) was your company affected by demand side risk to meet
customer expectation?
1 2 3 4 5

B 3.1 Unanticipated or very volatile customer /
B.3 Demand B 3.2 Large forecast error in demand /
Side Risk B 3.3 Frequent delays in delivery to customers /
B 3.4 Receivables risk /
B 3.5 Change in customer preference /
B 3.6 Reputation risk /
B.4 Logistics side risk (BMC: Key Resources)

In this past three years (Since 2019 -2021) was your company affected by logistic side risk to meet
1 2 3 4 5
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B.4 B 4.1 Inadequate operation/financial strength of the /
Logistic Side carrier
Risk B 4.2 Storage issues /
B 4.3 Poor design of transportation network /
B 4.4 Wrong Choice of mode of transportation /
B 4.5 Improper packaging and marking details /
B 4.6 Damages due to accident/improper stacking /
B 4.7 Delay in Delivery time /
B.5 Information risk (BMC: Channel)

In this past three years (Since 2019 -2021) was your company affected by information risk to meet

B.5 B 5.1 Delay or unavailability of the information and /
Information communication infrastructure, either within or outside
Risk the company
B 5.2 Breakdown of external/internal IT /
infrastructure
B 5.3 Inadequate security of information system /
B 5.4 Wrong choice of communication /information /
sharing medium
B.6 Environmental risk (BMC Activities)
22
In this past three years (Since 2019 -2021) was your company affected by environmental risk to
meet customer expectation?
1 2 3 4 5

B.6 B 6.1 Policy Uncertainty /
Environmental B 6.2 Macroeconomic uncertainty /
Risk
B 6.3 Uncertainty due to Government /
laws/regulation
B 6.4 Social uncertainty /
B 6.5 Non availability of skilled /
B 6.6 war terrorism Natural calamities and other /
forced majeure like strikes, riots etc,
B 6.7 Our products face unpredictable demand /
shifts.
B 6.8 Our firm depend on supplies and/or export /
markets that experience severe currency or price
fluctuations.
B 6.9 Our imports or exports face recurring /
disruptions due to geopolitical turmoil.
B 6.10 Our facilities or markets are frequently /
exposed to severe natural disasters.
B 6.11 Our firm regularly face unforeseen technology /
failures in our operations.
B 6.12 Our operations are susceptible to a potential /
health pandemic affecting our employees.
23
4.2.2 DISCUSSION ON SECTION B
Section B questionnaire stated a problem statement on the supply chain risk of the
company. Supply chain risk problems can be seen in internal and external risk. Internal supply
chain risk are risks that the company can control and avoid. While external supply chain risk are
risks from outside and cannot be controlled such as demand risk. Based on the questionnaire, we
categorized it into five levels of risk to the company to answer. The risks are indicated like this;
very low risk (zero time), low risk (one or three times), moderate (four or six times), high risk
(seven or nine times), and very high risk (10 or more times).
As stated in the questionnaire on B.1, the question states on the supply side risk that may
the company faced or get affected by it. Supply side risk are the uncertain risks that might happen
and can slow down the production of a product. It happens because the suppliers have a problem
supplying the raw material to the company itself sometimes due to high demand. Based on the
answers by the company, we can see that the company has a high risk of receiving a poor quality
of supplies, indistinct inspection or acceptance procedure of supplier, sudden default of supplier,
and dependency on single supplier for critical and long cycle of time items. However, the company
also faced a very high risk of having a limited number of supplies. This is probably due to not
many suppliers supplying the raw material that have been used by the company.
Next is manufacturing side risk. Manufacturing side risks are one of the internal risks
caused by disruptions of internal operations or processes. Hence, it can affect the production of
the products. Tradisional Food Industries may be affected by a high risk in disruption in
production, high level of process variation, inflexibility in capacity, inflexibility in layout for free
flow material, indistinct inspection and acceptance procedure, and frequent product recall process.
Demand side risk is a potential hazard that are inevitable for normal business operations.
It occurs when these businesses relies too much on forecasters who inaccurately predicts the
amount of products customers are willing to buy. There are also unanticipated or volatile customers
that business can’t predict what are their demands. They might produce too much or too little
24
products to meet customers demands which eventually will result in losses and wasting production
costs. This business also faces high risk of changes in customer preferences because some people
have their own preferences and others like to try new things which makes it harder for company
to cater all of customers preferences since different people have different preferences.
For logistics side risks, they faced a high risk of improper packaging and marking details
from supplier which can badly affect the quality of the raw materials and will make workers
confused because of the wrong marking details. This will eventually detriment the business
because not only they can’t use the raw materials to produce goods and wasted their money, they
have to order new raw materials from other suppliers which slowed down the production process.
Information risk are the risk that relates with the potential of loss of information or data on
the supply chain. This risk will have a negative impact on the business because it may affect the
trustworthiness and integrity of the company to the outsider parties. The company has a high risk
of delay or unavailability of the information and communication infrastructure, either within or
outside the company in this information risk. This are likely due to miscommunication that
happens among them.
25
4.3 SECTION C: STRENGTH IN THE COMPANY
4.3.1 FINDINGS ON SECTION C
In this section, they will be asked on how to assess the capabilities that enable their firm to
anticipate, and all the risk above, as seize opportunities for competitive advantage. For each
statement, they need to indicate the extent of a very low resilience capabilities to very high
capabilities based on their personal knowledge supply chain resilience capabilities of their
products, organization, and operations.
Capability C1—Flexibility in Sourcing: “Ability to quickly change inputs or the mode of

receiving inputs
1 2 3 4 5
Very Low Low Moderate High Very High
capability Capability Capability Capability Capability
Supply Chain SR Resilience Capabilities Variable 1 2 3 4 5

Capabilities
(Strength)
Capability C1— C 1.1 Our supplies are used in multiple finished /
Flexibility in goods.
Sourcing
C 1.2 Our finished goods use modular designs. /
C1.3 Our products can be made by a variety of /
machines and workers.
C1.4 Our supply contracts can be easily modified /

to change specifications, quantities, and terms.
C 1.5 Our firm have many alternate sources for key /

inputs
Capability C2—Flexibility in Order Fulfilment: “Ability to quickly change outputs or the mode
of delivery.”
Capabilities
(Strength)
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Capability C2— C 2.1 Our firm can quickly vary outsourced /
Flexibility in Order storage, distribution, and other services.
Fulfilment: C2.2 Our firm can delay production to be more
responsive to demand.
/
C 2.3 Our firm pool inventory for a wide variety of /

customers at centralized locations.
C 2.4 Our firm have a sophisticated inventory /

management system that regularly computes both
safety stock and cycle stock at all storage and retail
locations.
C 2.5 Our firm can quickly change the routing and /
mode of transportation for outbound shipments.
C 2.6 Our firm can quickly reallocate orders to /
alternate suppliers and reallocate jobs with
different production units.
Capability C3—Capacity: “Availability of assets to enable sustained production levels.”

Capabilities
(Strength)
Capability C3— C3.1 Our firm have reliable back-up utilities /
Capacity: (electricity, water, communications, etc.).
“Availability of
assets to enable C.2 Our firm maintain access to duplicate or
sustained production redundant facilities and equipment.
/
levels.”
C3.3 Our firm have significant excess capacity of /
materials, equipment, and labour to quickly boost
output if needed.
Capability C4—Efficiency: “Capability to produce outputs with minimum resource

requirements.”
Capabilities
(Strength)
Capability C4— C 4.1 Our labour productivity is very high. /
Efficiency:
“Capability to C 4.2 Our assets are effectively utilized with no /
produce outputs with limiting bottlenecks.
27
minimum resource C 4.3 Our firm consistently produce high-quality /
requirements.” products with little waste.
(Encounter Demand
Risk) C 4.4 Our firm have effective preventative
maintenance programs.
/
D 4.5 Our equipment is very reliable. /
Capability C5—Visibility: “Knowledge of the status of operating assets and the

environment” (BMC Channel)
Capabilities
(Strength)
Capability C5— C 5.1 Our firm have information systems that /
accurately track all operations.
Visibility:
C 5.2 Our firm have real-time data on location /
“Knowledge of the and status of supplies, finished goods,
equipment, and employees.
status of operating
C 5.3 Our firm have regular interchange of /
assets and the information among suppliers, customers, and
environment.” other external sources.
C 5.4 Our firm have effective Business /
Encounter (Supplier Intelligence gathering programs.
Side Risk)
Capability C6 —Anticipation: “Ability to discern potential future events or situations.”

(Encounter with manufacture side risk) (BMC: Key Activities)

Capabilities
(Strength)
Capability C6 — C 6.1 Our firm effectively uses demand /
Anticipation: forecasting methods.
“Ability to discern C 6.2 Our firm has a formal risk identification /
potential and prioritization process.
future events or C 6.3 Our firm closely monitors deviations to /
situations.” normal operations, including near misses.
C 6.4 Our firm quickly recognized early /
warning signals of possible disruptions.
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(Encounter with C 6.5 Our firm has detailed contingency plans /
manufacture side and regularly conducts preparedness exercises
risk) and readiness inspections.
C 6.6 Our firm recognizes new business /
opportunities and takes immediate steps to
capitalize on them.
Capability C7—Recovery: “Ability to return to normal operational state rapidly.” (BMC: Key
resources)
Capabilities
(Strength)
Capability C7—C 7.1 Our firm can quickly organize a formal /
Recovery: “Ability response team of key personnel, both on-site and
to return to normalat corporate level.
operational C 7.2 Our firm have an effective strategy for /
state rapidly.” communications in a variety of extraordinary
situations.
(Encounter to C 7.3 Our firm are very successful at dealing /
Manufacturer Risk) with crises, including addressing public
relations issues.
C 7.4 Our firm take immediate action to mitigate /
the effects of disruptions, despite the short-term
costs.
Capability C8—Security: “Défense against deliberate intrusion or attack.” (BMC: Channels)

Capabilities
(Strength)
Capability C8— C 8.1 Our firm employ layered defences and do /
Security: “Défense not depend on a single type of security
against deliberate measure.
intrusion C 8.2 Our firm use stringent restrictions for /
or attack.” access to facilities and equipment.
C 8.3 Our firm have active security awareness /
programs that involve all personnel.
C 8.4 Our firm effectively collaborate with /
government agencies to improve security.
C 8.5 Our firm have a high level of information /
systems security.
C 8.6 Our firm use a variety of personnel /
security programs such as awareness briefings,
travel restrictions, and threat assessments.
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4.3.2 DISCUSSION ON SECTION C
In this section, we will look on the strength in the company by the capability of their supply
chain to meets customer demands. Ability company to deliver more value to customers than its
competitors in supply chain is the greater factor in competitive (Vincenzo Cirillo, 2020)
According to Mr. Hakim their company is flexible to change or modified their supply
contract accordance to changes in specification, the quantity of supply and any terms to be
considered since they have a high capability on it. This is an advantage for Tradisional Food
Industries in their supply chain by having a high capability supplier. Moreover, Mr. Hakim very
sure to state that his company has a high capability on this flexibility sourcing because Tradisional
Food Industries have many alternative sources in terms of supply. This factor makes Mr. Hakim
company has a lower risk in supply chain even though they have to face with pandemic era.
Furthermore, Tradisional Food Industries is very capable to delay their production in order
to be more responsive to customer demand on their product. It shows that they have the customer
trust because it’s not easy to be flexible with customer order and this is a clear view that they have
a good customer relationship. This is related to the action takes by the company to reallocate with
the order of alternative suppliers and jobs with different production unit that flexible which is very
capable to be handle helps them to meets customer order.
The supply chain of Tradisional Food Industries is also measured on the availability of
assets to enable sustained production levels whether the capacity is very high capable or very low
capable. According to Mr. Hakim, their company has a high capability with the capacity of reliable
back-up utilities which is electric, water, recommendation or others. It indicates that Tradisional
Food Industries able to use the available asset capacity in order to meets customer needs. This
company also capable in maintain access to duplicate or redundant facilities and equipment which
show they have the capacity that available and able to use it. This will make sure Tradisional Food
Industries able to sustained their production level.
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Tradisional Food Industries has a high capability to use their assets with effectively without
any barriers in maximizing the production. It shows that the resource use is well manage which
improve their supply chain. However, Mr. Hakim indicates that they keep produce a high-quality
product even with a little waste. That is clearly show that in order to encounter with demand risk
they constantly give their best to customer with a little waste with their supply chain. They also
state a high capability that their equipment is very reliable to face the demand risk.
Visibility refers to the extent to which a company can estimate its future performance.
While it is a very broad term that applies to both short-term and long-term performance, having
visibility into the organization greatly helps management to run a business better. For this factor,
Tradisional Food Industrie has moderate ratings as they have real-time data on location and status
of supplies, finished goods, equipment, and employees which help a lot during operation. But
sometimes they may not have enough gathering programs, information systems that accurately
track all operations and interchange of information among supplier, customers and other external
sources.
Anticipation as a Business Acumen skill can be defined as the ability to look ahead to see
things others, including customers and competitors, don't see and then developing solutions in the
form of products and services that are executed before your competitors, and before customers
give up looking for the solution. Throughout the questionnaire, we can see that Mr. Hakim rated
low capability in anticipation factor. Mr. Hakim rated low capability for effectively uses demand
forecasting methods, a formal risk identification and prioritization process, closely monitors
deviations to normal operations, including near misses, quickly recognized early warning signals
of possible disruptions and detailed contingency plans and regularly conducts preparedness
exercises and readiness inspections. As Tradisional Food Industries processes flour -coated potato
chips and beans on a daily basis, the chances for the product to go stale are high if not packaged
in the right way. They can't leaving their products exposed outside longer. Because it would be a
waste to throw it away, Mr. Hakim has some suggestions to prevent this from happening. He will
offer a discount on each item and some promotions to encourage customers to buy more than usual.
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Recovery is an economy healing itself from the damage done, and it sets the stage for a
new expansion. Throughout the questionnaire, Mr Hakim has rate moderate with most components
of recovery factors. But in terms of dealing with crises, Mr Hakim rated it as low capability. The
story from Mr. Hakim where, during the transmission of covid-19, every citizen has to abide by
the SOP set by the government where anyone who wants to enter the shop has to wear a face mask,
scan my wellness and also temperature. at the time, there were customers who did not want to wear
face masks, so Tradisional Food Industries employees prevented customers from entering the
store. customers make a fuss of having to wear face masks. customers make a fuss and disturb
others who are buying in the store, Mr. Hakim will not tolerate the prescribed law government.
For him everyone must obey the law. Mr. Hakim solved the problem by asking the customer to
wear a face mask, however the customer still refused and left in a state of dissatisfaction.
Security defines the defense against deliberate intrusion or attack. The company did have
the security for the business but did not effectively collaborate with government agencies to
improve security. They only have the basic security for their company such as use stringent
restrictions for access to facilities and equipment.
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4.4 SECTION D: CUSTOMERS AND REVENUE STREAM & COST STRATEGY’S
4.4.1 FINDINGS ON SECTION D
SECTION D: CUSTOMERS AND REVENUE STREAM & COST STRATEGY’S
This question will be asked regarding the customers and revenue stream & cost strategy’s
strategies application in the organization. which will create more opportunities for the company to
resilience capabilities in the supply chain.
1 2 3 4 5
Does not Somewhat Moderate Apply Certain Applies Very
Applicable Applicable Much
Customer Cost Acceptance Risk Strategy 1 2 3 4 5

Strategy
D1.1 Our firms in collaboration with our customers /
Acceptance and suppliers Our firm are working on transparent
Strategy supply and open sharing information regarding small
(D1) consequences of impact as relatively minor.
(The D1.2 Our firm accepts the small cost of raw materials /
likelihood of affecting of our manufacturing cost from our suppliers.
occurrence is D1.3 Our customers accept the small differentiation of /
small and the cost of product
consequences D1.4 Our Firm accept the small delay time when occur /
of impact as the logistic problem from our supplier.
relatively D1.5 Our customer accepts the small delay time when /
minor) Our firm had occurred problem in the logistic
D1.6 Most of the environment risk (policy /
government, macroeconomic, social problem, natural
disasters) are the small affected with our company
Mitigation Avoidance Risk Strategy 1 2 3 4 5

Risk
Strategy
D2.1 Our firm has avoided the suppliers and customer /
Avoidance who will lead the exposure risks which are considered
Strategy (D2) unacceptable
(Used when D2.2 Our firm will avoid the supplier who are not /
the activities provide the accurate information
lead to D2.3 Our firm will avoid the suppliers who have /
exposers to problem of in the logistic and delay time
risk which are D2.4 Our firm will avoid all the environment risk who /
will affect our company
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considered D2.5 Our firm try to avoid environment risk natural /
unacceptable) disaster with provide precautions signs
(M.S2) D2.6 Our firm will avoid to deal with the customer who /
had a bad reputation with our company
Mitigation Cost Transferred Risk Strategy 1 2 3 4 5

Risk
Strategy
D3.1 Our firm has a mutual agreement that Our firm /
Transferred share the risk through outsourcing, insurance,
Strategy (D3) collaboration and legal contract
(Risk can be G 6.2 Our firm using legal contract to deal with /
shared and suppliers
through D3.3 Our firm has a collaborative relation with /
outsourcing, suppliers and customers e.g involvement in design
insurance, process
collaboration, D3.4 Our firm has insurance coverage for our product /
and legal when with deal with our supplier and our customers
contract) D3.5 Our firm outsourcing the product and service /
D3.6 Our firm have collaboration with our competitor /
(joint product development)
D3.7 Our firm have insured in shipment and liquidated /
damage agreement
Mitigation Risk Cost of Control Risk Strategy 1 2 3 4 5

Strategy
Control Strategy (D4) D4.1 Our firm regularly monitor our /

suppliers for possible supply chain risk
(Involves attempts to
D4.2 Our firm using vendor management to /
prevent risk through the select the suppliers
both a reduction of the D4.3 Our firm using supplier chain structure /
and redesign and reduction
probability of an event
D4.4 Our firm implement Total Quality /
occurring actions to Management as quality monitoring
mitigate the D4.5 Our firm had improvement information /
using the latest technology
consequences of related
D4.6 Our firm using supplier selection /
risk)
strategy to select the best suppliers
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4.4.2 DISCUSSION ON SECTION D
This section discusses the customers and revenue stream & cost strategies. It explains how
the risks in this section will affect the firm production. It contains a 1 to 5 rank for each subsection.
5 represents the highest rank that might affect the business and 1 represents the low risk that can
affect the business. The subsection includes cost acceptance risk strategy, avoidance risk strategy,
cost transferred risk strategy and cost of control risk strategy.
In the cost acceptance risk strategy section it explains the importance of the suppliers and
customers feedback in accepting the risks which involve the business' products. Despite the cost
changes from the suppliers, this company manages to accept the small changes even though it
affects their production. As for the customers, they are still willing to accept the small
differentiation cost of the product. Moreover, the customers will patiently wait for the production
to arrive even though the firm is having a delay time or a problem occurs in the logistics. For
example when the firm had problems in arriving at the supplies, their customers are willing to
accept the consequences. Last but not least, this company is placed in the strategic area. Having
the environmental risk will not badly affect the firm such as the social problem, natural disaster
and policy of the government.Based on the questionnaire above, we know that this company can
cope with the cost risk that occurs and they can manage the problem well.
Avoidance risk strategy explains the firm in avoiding the risk before it occurs in the
business. Honest and trustworthy are the two most important attitudes that had been practiced in
this Tradisional Food Industries. Meeting a lot of suppliers and customers without knowing their
true intentions are also a risk to the firm. Tradisional Food Industries will surely avoid all the
suppliers and customers that can bring unacceptable risks to the company. If the firm knew that
the suppliers had exposed any of the confidential information to the public, Tradisional Food
Industries will immediately find new suppliers for their business. In addition, this firm will not
accept any contract from any suppliers who did not provide any accurate information for the safety
of the business. Having problems in logistics and delay time is normal and can be accepted, but
having this problem to repeatedly happen is a big risk for the business. Since Tradisional Food
35
Industries is a known company in their area, the firm must be professional and must be on time to
deliver customers' demand.
Cost transferred risk strategy can be transferred or shared through outsourcing,

insurance,collaboration and legal contract. For Tradisional Food Industries, they are aware and
informed that their firm has a mutual agreement in the transferred risk strategy. The reason to this
is to save the business from getting a major loss if the firm focuses on one risk only. As for
Tradisional Food Industries, they chose to outsource the product and service as to lessen their risk
strategy. Competition in business is common but this firm chooses to have a healthy competition
with their competitors by having collaboration so that their business would grow together.
Last but not least is the cost risk strategy. This strategy involves attempting to prevent risk.
For Tradisional Food Industries, they will regularly monitor their suppliers to prevent any supply
chain risk. This is because this firm is using vendor management to select the suppliers. Monitoring
the suppliers is one of the ways to prevent the supply chain risk from happening. As years pass by,
technology is a common thing in this era and a need for all human beings. Moreover it is the most
useful and important tool in business to ease everything in keeping information . This firm also
had an improvement to gain information using the latest technology. To give the best and quality
products for customers, this firm will find the best suppliers that can supply fresh products for the
business, so that the customers will keep on repeating to buy Tradisional Food Industries products.
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4.5 SECTION E: REVENUE STREAM: SUPPLY CHAIN PERFORMANCE IN THE
ORGANIZATION
4.5.1 FINDINGS ON SECTION E
SECTION E: REVENUE STREAM: SUPPLY CHAIN PERFORMANCE IN THE

ORGANIZATION
This section will be asked regarding about the how your firm evaluate the Revenue Stream: Supply
Chain Performance in the organization.
1 2 3 4 5
Strongly Not Not Agree Moderate Agree Strongly Agree
Agree
SUPPLY REVENUE STREAM PERFORMANCE 1 2 3 4 5

CHAIN
Supply Chain E 1.1 Oder fill capacity: Provision desired quantity /
Performance on consistent Basis
E 1.2 Delivery on dependability: Meeting quoted or /
anticipated delivery dates and quantities on the
consistence basis
E 1.3: Customer Satisfaction: Meeting customer /
satisfaction with supply chain performance on a
consistent basis
E 1.4: Time: Our firm on time meet order receipt and /
customer delivery
E 1.5: Supply chain not affected by disruption and /
risk related to your suppliers
E 1.6: Supply chain not affected by disruption and risk /
related to your customers
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4.5.2 DISCUSSION ON SECTION E
This section is about how they assess how strong the chin endurance performance supplies
in the organization. The key metrics used in this section are based on rankings 1 through 5 for each
subsection. The highest ranks represent strongly agree which may help business to grow well.
Subsections include the capacity to fill orders, delivery on reliability, customer satisfaction, time
between order receipt and customer delivery, the supply chain is not affected by disruptions and
risks associated with your suppliers and customers.
The first is about the capacity to fill orders, are the steps taken by the Tradisional Food
Industries before new order and send the order to the customer. From what Mr. Hakim said they
never were dropping their customer orders. If the customer places an order and the product is sold
out sold, they will give two options to their customers. The first is to return their money. The
second will ask if they want to change the product to another product. So, what can we do say is
Mr. Hakim is very responsible in carrying out his duties.
The second is delivery on reliability i.e. the ability to meet delivery time or promise.
Tradisional Food Industries will always deliver orders to customers within the stipulated time
estimated. In general, their customers will order directly to the store via Whatsapp, messenger or
direct message on Instagram. Sometimes they also keep coming to the store to buy the products
they want.
About suppliers raw materials, at the time of covid-19 they had no problem in procuring
raw materials because the suppliers did not procure many orders. However, when the situation was
stable, the raw materials ordered from the suppliers were obtained so slowly as the suppliers
obtained many orders until the order reached more than 7 days.
Third is customer satisfaction, expressed as a measure that determines how you are
customer satisfaction with the company’s products. Customer satisfaction includes evaluation and
feedback that can help companies determine ways to improve their services. Mr Hakim said that
38
they have social media platforms like Facebook. So they get feedback through buyer comments
on their Facebook page. But for direct sales companies will ask face -to -face feedback for
customers. For now, they have never gotten any bad feedback from them customers. If the
customer is not satisfied with the product they will try to handle it with the best solution. But for
now, they’ve never gotten any bad feedback.
The fourth is about the customer's order receipt and delivery which is how long it takes
prepare the order. Tradisional Food Industries products are ready to use meaning they are available
provide the product just wait for the rider to select the product and continue to ship to customer. It
doesn’t take long to get into the hands of the customer.
Lastly, the supply chain is not affected by the disruptions and risks associated with you
suppliers that they have never had a problem with raw materials. If that happens, they will sell
ready -made items such as chips taken from nearby housewives. So, they will continue to operate
as usual. The supply chain is not affected by disruptions and risks associated with your customers.
For now, companies have no problems with customers because they really protect their quality
service.
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4.6 SECTION F: FIRM COMPETITIVE ADVANCE
4.6.1 FINDINGS ON SECTION F
SECTION F: FIRM COMPETITIVE ADVANTAGE
This section will be asked regarding about the how firm evaluate the competitive advantage in the
organization.
1 2 3 4 5
Strongly Not Not Agree Moderate Agree Strongly Agree
Agree
SUPPLY REVENUE STREAM PERFORMANCE 1 2 3 4 5

CHAIN
Supply Chain F 1.1 Our brands have excellent customer recognition /
Competitive
Advantage F 1.2: Our firm have a strong reputation for quality /
F 1.3: Our customer can differentiate our products /
F 1.4: Our customer are very loyal to our product /
F 1.5: Our firm strong, long term relationship directly /

with each of our customers.
F 1.6: We are delivering the right quantity with the /
right quality at the right time
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4.6.2 DISCUSSION ON SECTION F
Covin & Miles (1999) and Hunt (2000) in Miles (2006:14) defines that “Competitive
advantage are outcomes of the firm's strategically leveraging EMPs (entrepreneurial marketing
processes) in the innovation of its products, processes, strategies, or its domain to create a superior
market position”. This section is about the competitive advantages of the firm. It is will have 6
sections on brand, firm reputation, product differences, customer loyalty to products, firm long -
term relationships, and delivery. Key metrics used in this section based on levels 1 to 5 for each
subsection. The highest rank represents strongly agree that might help the business to grow well.
First of all, in terms of brand, Traditional Food Industries gained excellent customer
recognition. According to Mr. Hakim, customers who recognize and accept the brand of their
product will definitely come back to their store to buy the product. In addition, customers will also
tell about this brand to friends and relatives so that they are interested and come to the store to find
the brand of the product.
Next, in terms of reputation, Tradisional Food Industries has a strong reputation for quality.
According to Mr. Hakim, they place great emphasis on their products in terms of quality and
quantity. They constantly monitor all processes from the processing part to the packaging part. For
example, if the weight of 1 kg of wet spicy sweet potato chips ordered by the customer, then 1 kg
is also packed by them.
In terms of product differences, Tradisional Food Industries customers are able to

differentiate our products from other products in terms of packaging. This is because, Tradisional
Food Industries puts the logo and name of the product on the packaging plastic so that customers
do not confuse the products of Tradisional Food Industries with other local products.
41
In terms of loyalty, Tradisional Food Industries customers are very loyal to their products.
According to Mr. Hakim, they are very concerned about the taste of their products. They also
maintain the quality, quality and authenticity of their products. That way, customers will continue
to get addicted and stay with Tradisional Food Industries products until they don’t want to try
similar products from other stores.
In terms of the firm’s long -term relationships with customers, Tradisional Food Industries
has strong long -term relationships directly with each of their customers. This is because, opinions
and views from customers are the company's priority at the same time can meet the wants and
needs desired by customers. When the customer's needs can be met, then the customer will
continue to come to buy with the company and in turn can increase sales and profits of the
company.
Finally, from delivery, Tradisional Food Industries are delivering the right quantity with
the right quality at the right time. According to Mr. Hakim, before the order is sent to the customer,
they will double check on their product so that the quality and quantity requested by the customer
is accurate and can send the customer's order according to the desired time. With that, customers
feel very satisfied with the service provided and make customers not shy to buy again and again.
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5.0 CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION OF SECTION A
Starting a small business or business in general is becoming a popular career option among
young and middled age adults as early as during the 80’s according to Michael Cusack and Peter
Emerson (1989) in their studies. Similar case with Mrs. Hjh Normah Bt Abd Karim and her
husband, Mr. Hj Mohd Nizam Bin Khamis when they founded Tradisional Food Industries on
1992. It all started at their own house, where they did all the production processes like frying the
cassava chips and coating the peanuts into various kinds of spices with the help of their children.
Now that their children has grown older and since it’s a family business, they appointed Encik
Hakim, one of their children to be the successor for this business because it can provide long-term
business and financial stability in the labor market (Radha R. Sharma,2020).
Now, after more than 20 years operating, the business gotten big and stable and became
one of the famous place to buy snacks for celebration days in Seremban. They also sell a plathora
kinds of chips which can cater the preferences of many races and people. Currently they have their
own shop lots to sell their products with more than 50 people working for them. Even Though the
pandemic hits and production operates slower than before, the business is still thriving well as they
operate through online.
5.2 CONCLUSION AND RECOMMENDATION OF SECTION B
Tradisional Food Industries are have a major risk problem in receiving a poor quality
product and the dependency on single supplier for a critical and long cycle of time items. It is
likely due to the manager or operation teams are tend to underestimate the disruption risk in the
absence of accurate supply chain risk (Kunreuther, 1976).
43
Next, the company is also facing a high risk of delay or unavailability of the information
and communication infrastructure, either within or outside the company. This can be seen that the
risk itself comes from humans thus it causes falsification either in external or internal of the
company. One of the reasons for this problem could be caused by multiple sources of inherent
uncertainties and can influence the operations of the business (Fahimnia,Tang,Davarzani &
Sarkis,2015).
There are many solutions or ways for Tradisional Food Industries to avoid the supply chain
risk to happen in their business. According to article ‘ Highlighting the Importance of Considering
the Impacts of Both External and Internal Risk Factors on Operational Parameters to Improve
Supply Chain Risk Management’, it stated that a organization need to more proactive in managing
their ever-increasing operational risk that impact on the management (A. Salamai, O. K. Hussain,
M. Saberi, E. Chang and F. K. Hussain,2019). Therefore the business can be more organized
and the risk that may happen could be avoidable or lesser.
As business faced large forecast error in demand that detrimented their profit, it will affect
badly to the business and will make company faces loss in the long run. They should align their
production of products with the demand from the customers (TRACC, 2020). This will prevent
them from overproduction. Because if they overproduced, the products that were not sold will
become bad in no time and they had no choice but to throw them which will lead to another
problem which is wasting the raw materials.
5.3 CONCLUSION AND RECOMMENDATION OF SECTION C
In conclusion and recommendation, we can say the business operations of Tradisional Food
Industries are in a good position as it has been operating for more than 1 decade. Since opening
the business, they have not faced any major problems even in the Covid-19 pandemic, they have
managed to operate and show good performance. Companies have the ability to conduct business
44
when some other businesses are unable to perform well. This shows that the company’s recognition
of their customers is strong and gets support from regular customers and others.
They are advice to increase the ability of their product to be more benefits as input to help
in solving customer problem in producing output. Moreover, by providing more skills to
maximizing the use of machine and work force will help in increase product ability. Workforce is
trained on more creative power skills, including leadership, conflict resolution, and
communication is the concern aspect to increase product value (Susan Podlogar, June 2019).
Besides, Tradisional Food Industries may improve their supply chain management by
improving customer relationship. Capability in inventory management system will helps Mr.
Hakim and team to track both safety stock and cycle stock at all storage and retail locations. Which
the quality of each product is guaranteed and can even meet customer satisfaction. Customer
satisfaction is the broader with product quality which is significant factors influencing satisfaction
according to Petr Suchánek, Jiří Richter, Maria Králová2 (2014).
Furthermore, in maximizing the utilization of asset capacity can drive production

continuously as there is excess capacity of materials, equipment and labor. This action will result
in the efficient use of company resources to produce output. for example, the output produced by
Traditional Food Industries currently is 50,000 units can be increased to 150,000 units if it can
maximize the utilization of the company's asset capacity. so the company's profits also increase.
In terms of visibility, Tradisional Food Industries has done well as they have information
systems that accurately track all operations besides having the real-time data on location and status
of supplies, finished goods, equipment and employees.
45
For recommendation and improvement in future, Tradisional Food Industries need to keep
in touch or update to the new systems which will improve productivity and have the best system
to have better in meeting the supply and demand chain.
Since stores receive a smaller number of customers on weekdays, Mr. Hakim can adjust
the number of their inventory received during weekdays to be lower than on weekends. We will
recommend Mr. Hakim to set up a risk management team. The team will review and avoid any
risks associated with emerging inventories.
While the Tradisional Food Industries faces these types of inventory risks, the team will
focus on how to effectively manage these risks. Discounts are a well -known technique for
convincing consumers to buy products in large quantities. But in the long run, businesses may not
be healthy to continue selling discounted items and this is the reason why this team comes in
handy. Another team that focuses on quality control is also great to have because they can ensure
the quality of the product while being processed. Tradisional Food Industries will process the
product in terms of frying wraps at night. They need a responsible person to take note of any
changes to the product as accidents may occur such as chips being exposed outside for too long or
flavors being placed excessively so as to alter the original taste of the product.
Security is the defense against intrusion or deliberate attack. Every company needs security
to avoid and avoid any losses. As for business security, they actually run well and have the basic
security needed as they have a high level of information system security. The Tradisional Food
Industries has been operating for over 1 decade so companies should have the highest level of
security.
For now, they can take care of their security like this and if they have additional and
sufficient capital they can work with government agencies to increase their security to the highest
level.
46
5.4 CONCLUSION AND RECOMMENDATION OF SECTION D
Tradisional Food Industries took a very serious action on their business safety. This firm
is also good at managing and handling their risks. Rather than having one major risk which can
cause a major loss, this firm manages well to outsource their risks.
One of the important things that this firm needs to improve is that they need to make sure
that the business is wholly safe and convincing by applying insurance for the business.
Last but not least, since this firm is a well known company by the citizens in their area,
they knew how to improve their production by each year and keep doing their best for the
customers by improving their quality of products and avoid the risk that can harm the business
5.5 CONCLUSION AND RECOMMENDATION OF SECTION E
In conclusion and recommendation, Tradisional Food Industries is good at supply chain

resilience performance. Since they use all subsections with the higher which is all agreed upon.
But there are things that are necessary to improve.
First Tradisional Food Industries needs to improve their services with respect to order
filling capacity. According to Vessella, V. (2021). sold -out items need to be repaired as it can
cause the company to get a bad reputation. Sold out is a term used to describe the phenomenon
when inventory for a particular product has run out. A customer walks into their store looking for
their favorite chips but finds them out of stock. customers will feel frustrated and choose whether
to buy at another store as well as not return to this store again. Tradisional Food Industries needs
to see this as a serious issue as it can cause customers to lose interest in their products as that time
may always be sold out. The Tradisional Food Industries needs to solve this problem so that
customers do not go to other stores.
47
The second is about feedback which is very important to improve the business of
Tradisional Food Industries. They need to have a platform to know what is going on in the
business, whether the customer enjoys the product, service or not. They also need to know what to
do if a customer is angry even if it’s not happening now. Furthermore, they still need to have a
plan to deal with this. Tradisional Food Industries doesn’t take feedback seriously because they
don’t often ask their customers. These things need to change so that they can improve their services
in the future. Otherwise, they will do the same and there is no improvement.
Lastly, the Tradisional Food Industries still needs to have backup despite having good
relationships or having a good past history with suppliers because they don’t know what will
happen in the future and this is important to ensure business continuity. Tradisional Food Industries
relies on suppliers who provide the raw materials needed for production. If the Tradisional Food
Industries still relies on the same suppliers but they run into problems and do not deliver the
ingredients as promised, then production can be delayed or stopped. The Tradisional Food
Industries can control supply shortages by making prior agreements with backup suppliers.
Moreover, Tradisional Food Industries has to find the best prices for raw materials and suppliers
also cannot raise prices at will. So, Tradisional Food Industries will get the raw materials at an
affordable price. It is also to maintain production because raw materials are always available when
needed.
5.6 CONCLUSION AND RECOMMENDATION OF SECTION F
In conclusion and recommendation, Tradisional Food Industries showed outstanding

performance in the competitive advantage of the firm. Given that they use all subsections with
higher ones almost everyone agrees. But there are few improvements that can be made.
First of all, in terms of brand, they can use advertising methods to further expand the market
either virtually on social media or using posters. This is very important to make Tradisional Food
Industries brand better known to the public. It is in line with the development of the world which
48
now has a variety of new methods to market their products more easily known and quickly spread.
Tradisional Food Industries is certified with excellent customer service because customers always
repeatedly buy its products and even some of them introduce these products to their contacts.
Therefore, this method is one of the improvements that must be done because it can give a great
impact to Tradisional Food Industries to further boost their brand in the world market.
Second, in terms of reputation, Tradisional Food Industries can improve by ensuring the
quality and quantity of products are checked repeatedly before packaging to ensure a strong
reputation can be maintained. It needs to be emphasized because customers pay close attention to
each product and choose products wisely and carefully. If the products produced are not taken care
of carefully in terms of quality and quantity then it will cause customers will not buy more products
produced by the company. Therefore, Tradisional Food Industries can further improve the process
by monitoring in terms of processing up to the packaging by conducting repeated inspections
before the product is marketed to customers.
Third, in terms of product differences, Tradisional Food Industries can improve the use of
product logos and names to be different from other local products. This is important to make it
easier for customers to better identify products and not be confused with almost identical products.
This is because a company such as Tradisional Food Industries produces products based on chips
and other companies also produce the same product, so the packaging in terms of logo and product
name will be the attention of customers, especially customers who want to buy the product for the
first time. Therefore, it is very important because the logo and product name reflect the image of
the company itself.
Fourth, in terms of loyalty, Tradisional Food Industries must always maintain the taste of
the product to always be guaranteed in terms of taste and quality in order to maintain a variety that
can not be matched by other products. The authenticity of the product must always be emphasized
so that it does not change because it can give an effect because the customer chooses a product
49
based on the taste in the product. This is important so that customers will continue to choose this
product without switching to other products because each product has its own specialties.
Fifth, in terms of the firm’s long -term relationship with customers, Tradisional Food
Industries can use online survey methods to make it easier for customers to voice requests to the
company about the products they want to get. Therefore, customers will feel like they are
appreciated by the company for caring and providing friendly treatment. It can also make it easier
for both parties to communicate with each other and maintain good relations between customers
and the company.
Finally, in terms of delivery, Tradisional Food Industries can improve by using bubble
airwrap to ensure the condition of the chips is better maintained in quality. This way, it gives
satisfaction to the customers and will definitely make more bookings in the future. This is very
important because customer satisfaction is a top priority. If the customer is satisfied and the service
provided is excellent then the customer will always buy from the same company without switching
to another company.
50
6.0 REFERENCE
Alexander Osterwalder & Yves Pigneur (2013). The Business Model Canvas (BMC).
https://www.toolshero.com/strategy/business-model-canvas/
Amanda Athuraliya (2021, September 23). The Easy Guide to Business Model Canvas.
https://creately.com/blog/diagrams/business-model-canvas-explained/
Cardella, G. M., Hernández-Sánchez, B. R., & Sánchez García, J. C. (2020). Entrepreneurship

and Family Role: A Systematic Review of a Growing Research. Frontiers in psychology, 10,
2939. https://doi.org/10.3389/fpsyg.2019.02939
Cirillo, V. (2020, September 22). Supply chain increase the competitiveness of your company
Technologies and Strategies. Business 2 Community. Retrieved November 26, 2021, from
https://www.business2community.com/strategy/supply-chain-increase-the-
competitiveness-of-your-company-technologies-and-strategies-02348056.
De Boer, L., Labro, E., & Morlacchi, P. (2001). A review of methods supporting supplier selection.
European journal of purchasing & supply management, 7(2), 75-89. From
https://www.sciencedirect.com/science/article/abs/pii/S0969701200000289
Hao Ma, (2000),"COMPETITIVE ADVANTAGE AND FIRM PERFORMANCE", Competitiveness

Review: An International Business Journal, Vol. 10 Iss 2 pp. 15 - 32.
http://dx.doi.org/10.1108/eb046396
Michael, C., Peter, E. (1998) The state of small business: A report of the President transmitted to
the Congress. Washington, D.C.: U.S. Government Printing Office.
Osterwalder, A. (2004). The business model ontology a proposition in a design science approach.
From https://patrinum.ch/record/15985/usage'
Podlogar, S. (2019, June 18). Maximizing potential. HRO Today. Retrieved November 26, 2021,
from https://www.hrotoday.com/news/engaged-workforce/benefits/maximizing-potential/.
Suchánek, P., Richter, J. & Králová, M. (2015). Customer Satisfaction, Product Quality and
Performance of Companies. Review of Economic Perspectives,14(4) 329-344.
https://doi.org/10.1515/revecp-2015-0003
Tan, V. (2005). 14 Maximizing Workforce Efficiencies with Effective Change Management. In A.

Ghani & O. Kee Beng (Ed.), HRD for Developing States & Companies (pp. 89-106).
Singapore: ISEAS Publishing. https://doi.org/10.1355/9789812305534-019
TRACC Solution (2020, April 17). In pursuit of demand driven supply chain. Kellogg’s Latin
America. https://traccsolution.com/case-studies/demand-driven-supply-chain/
51
Vessella, V. (2021). How Stockouts Can Hurt Your Business (And How to Prevent Them).
Retrieved June 12, 2021,from https://www.repsly.com/blog/consumer-goods/how-
stockouts-can-hurt-your-business
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7.0 APPENDICES
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ACKNOWLEDGEMENT

1.1 BACKGROUND OF STUDY

Figure 2.2.1 shows an organizational chart of the organization

These are the list on various products that sold:

● Kerepek Ubi Pedas Kering

Figure 2.3.6 shows various type of ‘kerepek’ in normal packaging

Figure 2.4.1.1 shows mapping of Tradisional Food Industries

Tradisional Food Industries is also active on Instagram in mid-May to make engagement

Figure 2.4.2.1 shows FB Page of Tradisional Food Industries in Facebook platform

Designed for: Designed by: Date: Version:

Business Model Canvas

Cost Structure Revenue Streams

4.1 SECTION A: COMPANY BACKGROUND

4.1.1 FINDINGS ON SECTION A

SECTION A: COMPANY BACKGROUND

Q2. What is your organizational level? (Choose one)

Q6. What is your company's ownership? (Choose one)

Q7. What is your company's ownership? (Choose one)

Q8. The company... (Choose all that apply)

4.2.1 FINDINGS ON SECTION B

INSTRUCTION SECTION B – SECTION F

SECTION B: PROBLEM STATEMENT IN THE COMPANY (SUPPLY CHAIN RISK)

Risk Sources Risk Variable 1 2 3 4 5

B 1.4. Inflexibility of suppliers /

B 1.8. Dependency on single supplier for critical and /

B 1.10. Frequent delays in material supply lead-time /

B 1.11. Intellectual property risk /

B.2 Manufacturing side risk (BMC Key Activities)

Risk Sources Risk Variable 1 2 3 4 5

B.3 Demand side risk (BMC: Key resources)

Risk Sources Risk Variable 1 2 3 4 5

B.4 Logistics side risk (BMC: Key Resources)

Risk Sources Risk Variable 1 2 3 4 5

B.5 Information risk (BMC: Channel)

Risk Sources Risk Variable 1 2 3 4 5

B.6 Environmental risk (BMC Activities)

Risk Sources Risk Variable 1 2 3 4 5

4.3.1 FINDINGS ON SECTION C

Capability C1—Flexibility in Sourcing: “Ability to quickly change inputs or the mode of

Supply Chain SR Resilience Capabilities Variable 1 2 3 4 5

C1.4 Our supply contracts can be easily modified /

C 1.5 Our firm have many alternate sources for key /

C 2.3 Our firm pool inventory for a wide variety of /

C 2.4 Our firm have a sophisticated inventory /

Capability C3—Capacity: “Availability of assets to enable sustained production levels.”

Capability C4—Efficiency: “Capability to produce outputs with minimum resource

Capability C5—Visibility: “Knowledge of the status of operating assets and the

Capability C6 —Anticipation: “Ability to discern potential future events or situations.”

Supply Chain SR Resilience Capabilities Variable 1 2 3 4 5

Capability C8—Security: “Défense against deliberate intrusion or attack.” (BMC: Channels)

Supply Chain SR Resilience Capabilities Variable 1 2 3 4 5

4.4.1 FINDINGS ON SECTION D

SECTION D: CUSTOMERS AND REVENUE STREAM & COST STRATEGY’S

Customer Cost Acceptance Risk Strategy 1 2 3 4 5

Mitigation Avoidance Risk Strategy 1 2 3 4 5

Mitigation Cost Transferred Risk Strategy 1 2 3 4 5

Mitigation Risk Cost of Control Risk Strategy 1 2 3 4 5

Control Strategy (D4) D4.1 Our firm regularly monitor our /

Cost transferred risk strategy can be transferred or shared through outsourcing,

4.5.1 FINDINGS ON SECTION E

SECTION E: REVENUE STREAM: SUPPLY CHAIN PERFORMANCE IN THE

SUPPLY REVENUE STREAM PERFORMANCE 1 2 3 4 5

4.6.1 FINDINGS ON SECTION F