Building the Entrepreneurial Mindset

Protagonist: Mr. Neo Kah Kiat, founder, chairman and CEO of NEO Group Limited

Case Summary:

The case depicts the entrepreneurial journey of Neo Kah Kiat , Founder, Chairman
and CEO of NEO Group who derived business learnings from informal learning
and life experiences not from formal business-related education. The case deals
with building an entrepreneurial mindset using the BRiSK MIND model. Neo
group laid its success in their spirit of hospitality and pursuit of excellence with
adherence to food safety and reliability standards. The six unique selling points that
set them ahead of competitors were: One chef, one dish policy, 1 hour from
preparation to delivery, Ensuring top-notch quality taste and food presentation,
Every new dish, multiple research and development (R&D), 3-hour notice
last-minute orders, Quality versus quantity. Mr. Neo’s knowledge was honed
from his 12 years experience in the kitchen. In line with the Kaizen philosophy for
continuous improvement and growth, Mr. Neo had pushed for his operation team’s
protocol and knowledge to be enhanced to meet the quality standards of an ISO
22000 certified kitchen facility with technology-assisted specialised cooking. To
ensure food quality and safety standards, he created unique business practices and
processes that his catering companies had to follow. He constantly and repeatedly
stretched targets to motivate employees to aspire towards growing the business.
Through his persistence and foresight, many of his companies met or exceeded
their growth targets.

Problems:
 Lack of formal business knowledge
 Importing machinery
 Initial installation cost
 Business opportunity identification
 Risk mitigation, recruitment and relationship
 Strategy formulation

Criteria for evaluation:

BRISK Mind Model

Analysis/Alternatives
 Evolution of subsidiaries around five core business segments: strategic
vertical supply-chain integration across supplies and trading, manufacturing,
catering, retail, and others (including flowers and gifts) categories.
 The Neo Group’s success lay in their spirit of hospitality and pursuit of
excellence, as exemplified by adherence to food safety and reliability
 standards, as well as their key brand promises and synergistic value chain.
 a dedicated team of nine food safety and hygiene officers in their central
kitchens.
 Their unique selling points the six key highlights that set them ahead from their
Competitors:
1. One chef, one dish policy – having a dedicated chef for each type of
food, with a team of chefs deployed for the entire buffet line.
2. 1 hour from preparation to delivery10 – cooking 1 hour before delivery
ensured freshness, made possible by having two state-of-the-art central
kitchens, strategically located in the east and west of Singapore.
3. Ensuring top-notch quality taste and food presentation – taste and visual
tests were conducted prior to the delivery of every order. Dishes that did not
meet stringent standards were promptly replaced. Dishes were delivered
with props and display settings to match the occasion, such as Chinese New
Year and Christmas.
4. Every new dish, multiple research and development (R&D) – constant
experiments were carried out to create innovative dishes which followed a
stringent selection process of food tests and tasting before a new dish was
introduced.
5. 3-hour notice last-minute orders11 – their kitchens could produce
last-minute buffet orders with just a 3- hour lead time, thanks to their kitchen
technology enabling large-production capacity.
6. Quality versus quantity – food quantity was prepared according to the
number of guests catered for, without compromising quality over quantity of
food, even when serving up to 5,000 guests.

 Despite his lack of formal education, Mr. Neo was able to draw on his life
experiences, and learning from peers, mentors and employees. These informal
learning opportunities led him to exhibit strategic foresight and wisdom in
growing his enterprise.
 He recognised the potential to providing high-quality catered food for families,
especially during festive seasons and special occasions. Although he had no
training to create and evaluate business models, he had intuitively envisioned
his value proposition to transform the food catering industry and redefine
consumer perception of catered food through superior quality and convenience.
 Mr. Neo make bold decisions, but each move was calculated based on the
top-line and bottom-line for risk mitigation.
 To set themselves apart from competitors, other than quality, the Neo Group
created signature dishes, such as their curry chicken which took 9 months to
develop. Food safety was another critical component. To cope with the
increased demands and to maintain quality, Mr. Neo looked towards
supply-chain optimization and productivity through automation, such as
by acquiring rotary fryers. He also constructed identical kitchens in both
 the eastern and western regions of Singapore and imposed a philosophy of one
chef, one dish and zero error.
 The classic signature rotary fryer, the cake depositor, and the newest kid in the
block, Sophie, were just examples epitomising the Group’s investment in R&D
technologies for innovative processes that increased efficiency and
productivity.
 Mr. Neo’s entrepreneurial spirit might be captured by three As: ambition,
agility, and adaptability.
 Mr. Neo also eyed global expansion, targeting acquisition and strategic
partners in the F&B industry to strengthen38 the Group’s positioning as an
integrated catering and food solutions provider. All of this would not be
possible if not for his breadth and depth of knowledge in the industry and
support from management, sales, procurement and supply chain integration.

Conclusion:

Mr. Neo believes that continuing in the industry for more than 20 years is an
accomplishment. He would never, however, describe himself as a success since
he thinks one should always aim higher and never give up. Mr. Neo's goal is to
advance the local catering industry, and he leads by example, which has
undoubtedly boosted standards for the entire sector. His steadfast resolve also
equips him well to overcome any challenges in business. Mr. Neo's leadership
values corporate culture above anything else. Mr. Neo is a highly
forward-thinking caterer. Mr. Neo Kah Kiat never compromises on food
standards since he is aware that offering high-quality cuisine is the best method
to attract customers. He developed 6 special procedures that his catering
businesses must adhere to in order to guarantee that quality is upheld
throughout all steps. To spur himself and his team members to expand the
company, he would continually set new goals. His enterprises have consistently
hit their goals and eventually become listed in 2012 because to his tenacity and
insight. Additionally, he helped the business win the title of No. 1 Events
Caterer for three consecutive years, 2011, 2012, and 2014.