INTRODUCTION TO MANAGEMENT (MGT400)

FACULTY OF HOTEL AND TOURISM

MANAGEMENT

ASSIGNMENT TITLE:
CHALLENGES IN MANAGING A COMPANY

NAME OF COMPANY:
SHOPEE PTE. LTD.

TYPE OF BUSINESS:
E-COMMERCE PLATFORM

PREPARED BY:
1 NUR HUSNIYAH BINTI MOHD HALIMI 2022610832
2 FARAH NABILA BINTI HASRI 2022697606
3 NURUL HUDA BINTI MOHD RUSLI 2022495584
4 NURUL ANIS BINTI NOR AZLAN 2022899312

PREPARED FOR:
MS. NUR AMIRAH BORHAN

SUBMISSION DATE:
12 JANUARY 2023
TABLE OF CONTENTS
NO. TITTLE PAGE
1.0 INTRODUCTION
1.1 Background of the company 1

1.2 Organization chart 2

2.0 CHALLENGES FACES BY COMPANY
2.1Competitive advantage 3

2.2Lack of brand recognition 3

2.3 Slow shipping process 3-4

2.4 Bad rating and feedback 4

3.0 THE EFFECT ON POLC

3.1 PLANNNING 5

3.2 ORGANIZING 5

3.3 LEADING 6

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3.4 CONTROLLING

4.0 CONCLUSION AND RECOMMENDATION

4 .1 Focus on the whole system 7
4.2 Upgrade shipping option 7
4.3 Lower shipping prices
8

5.0 REFERENCE 9

APPENDICES 10
1.0 INTRODUCTION

1.1 BACKGROUND OF THE COMPANY

Forrest Li, a multibillionaire businessman and group executive at the technologically

significant Sea, is the owner of the e-commerce site Shopee. Since its founding in Queenstown,
Singapore in February 2015, this company has expanded to include Malaysia, Thailand,
Indonesia, Taiwan, the Philippines, and Vietnam. It demonstrates how readily recognized and
easily enlarged the world of digital entertainment is as an online purchasing platform.

In Greater Southeast Asia, Sea is known as a pioneer in e-commerce, digital entertainment, and
digital financial services. Originally a consumer-to-consumer marketplace, Shopee is now a
hybrid business-to-consumer approach. Due to the frequent purchases and widespread activity
on Shopee, the company now employs more than 8000 people.

Malaysia and Taiwan use Shopee as their primary e-commerce platform in Southeast Asia. This
platform, which has been localized, offers customers safe and quick online payment options, as
well as a wide range of options even when the product is from another country. The logistical
support, such J&T Express and Pos Laju Express, also has a significant impact on this business.

Through constant product optimization and consumer-focused methods, Shopee aims to

advance their platform and turn the area into an e-commerce hotspot. In addition, they feature
a wide range of product categories, including those for home and living, toys and infants,
fashion, health, and beauty.

Shopee provides a platform online shopping experience that offers a wide variety of products,
excellent fulfilment services, and a social network for discovery to all internet users interested
in online shopping around Asia. In addition, Shopee thinks that by connecting everyone,
including buyers and sellers, inside a single community, the revolutionary force of technology
would improve the world.

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1.2 ORGANIZATION CHART

CEO

Chief Commercial Chief Product Head, Business Head, Data Director, Marketing
COO Office Officer Intelligence Privacy Growth- Indonesia

Executive Director,
Philippines

Vietnam

Brazil

Taiwan

Thailand

Executive Director,
Indonesia

Executive Director,
Mexico & Colomb

Figure 1 Organization Chart Shopee

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2.0 CHALLENGES FACED BY THE SHOPEE COMPANY
2.1 Competitive advantage
Customers have multiple retail options. Due to the variety of possibilities, it offers,
online shoppers favor the marketplace. They may quickly compare costs, features, and even
choose the location closest to them for speedier delivery. Although this is excellent for
customers, it can be troublesome for sellers because it causes disturbance. It's brutal to compete.
The market itself occasionally joins the competition because it sells the same goods as
producers and distributors do. For instance, Lazada is one of Shopee's main rivals. Customers
will pick Lazada as their online retailer when Shopee charges a higher shipping fee. Businesses
must come up with fresh ideas if they want customers to keep choosing Shopee as their online
shopping destination.

2.2 Lack of brand recognition

Although the company has a sizable customer base, it is well known that one of its
biggest problems with market sales is a lack of brand recognition. It takes work to establish
your brand in a competitive market. It will also be challenging to change a negative perception
that currently exists for your brand. As a result, there won't be many chances for you to remind
your clients of it. The distinction between branding and marketing is another crucial thing to
understand. In contrast to marketing, which is the strategy you use to connect with clients,
branding is the "why" of your company. Markets play a role in this. Under the Shopee market,
there are a lot of unrecognized businesses. This is said to be so because many sellers sell their
own products. In addition, the goods sold are also usually imported from China without any
logo or recognition tag.

2.3 Slow shipping process

If their product is not delivered on time, 69% of customers will not return to your store.
Customers appreciate prompt delivery. If customers have a negative experience, it will be
reflected in their rating. Unfortunately, this is usually beyond your ability as a seller. One of
the reasons for this problem is that it is nearly impossible to find a city with no traffic. People
experiencing transit delays are becoming more common because of construction, accidents,
major road closures, and detours. Courier drivers can benefit from route optimization software.
It can calculate the quickest route and update it in real time to avoid events that cause delays.

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 Perhaps the most frustrating customer experience to endure always begins with the
question: "Where is my package?". What happened to the package? There are several
possibilities, including a simple misplacement, a damaged shipping label, or an accidental
transfer. This also occurs because one of the most common problems that can arise when
working without a reliable courier software is simply unclear handwriting. Given the nature of
the delivery industry, using pen and paper can result in repeated mistakes or accidents. Shipping
labels are also crucial. If it is of poor quality, it may cause problems for the courier when reading
or scanning it. Basically, relying on humans for tasks that can be automated can breed distrust.
Lost packages can be easily eliminated for the shipping company by utilizing logistics
management software. With complete package visibility beginning with the delivery person.

2.4 Bad rating and feedback

Reviews and social proof are important for any business, but they are especially important for
online businesses like marketplaces. This is said to be so because the comments given will be
used as a reference for the seller to repair deficiencies and improve the quality of their products
and services. There are various shops under Shopee. The issue is that most satisfied customers
won't tell you they are, while unhappy customers will tell you they are. Reviews from customers
are very important to develop a store. For companies like Shopee which is the center of other
stores will also be affected if a store gets a bad review. Stores that provide unsatisfactory
products or services will be evaluated by customers. Customers can say anything in the
comment section to give their feedback about the products and services received. There are
shops that sell under Shopee selling fake and poor-quality goods that tarnish Shopee's good
name.

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3.0 THE EFFECT ON POLC

3.1 Planning

Planning is the first stage in managing a firm, and a lack of planning is a major problem.
When all these elements are considered, it becomes clear that the company should begin its
plan with a solid strategy, a clear understanding of where the company is headed, and the steps
Shopee must take to ensure the plan is effective. Understanding the problems Shopee is
currently having in a competitive market with Lazada as their main competition is the aim of
long-term planning. Shopee owners should make plans for how their company conditions will
develop so that they can respond quickly if anything unanticipated occurs such a drop in
customer interest.
Shopee should constantly make sure the development plans they employ follow the
specifications of the S.M.A.R.T goals, which are specific, measurable, achievable, realistic, and
time bound. For instance, Shopee wants to improve the world by connecting shoppers and
sellers in a single community through the creation of a platform. Use these recommendations
while you create the strategy to improve the likelihood that it will be implemented successfully.
These are steps to take to ensure that the plan is carried out effectively, such as setting aside
time each day to monitor the plan's effectiveness and make changes as necessary. Since a
disaster could occur at any time, Shopee can include preventive measures and a backup plan in
the actual plan.

3.2 Organization

The next step after publishing the business plan is to determine and assign the proper
resources to the department to guarantee the efficient allocation of the resources. Resources can
include everything based on what is needed to complete a task, including labor, time, and raw
materials, thus department managers must have a comprehensive understanding of everything
the company needs in order to be successful. Managers are responsible for assigning tasks to
team members, ensuring that responsibility for all necessary actions has been transferred, and
ensuring that the team members are organized.

They will need to ensure that their technology is used appropriately while organizing.
In other words, since these sorts of tools are necessary for the employee to communicate more
with customers and recognize the problems that arise, software like AI technology should be
used in favor of general-purpose tools like big data analysis. Additionally, Shopee could adjust
their organizational structure by organizing all the available human resources to achieve Shopee
goals to better fit the framework of the Shopee business.
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3.3 Leadership

Leadership is very important in organization. It is because it will motivate employee to

cooperate in order to achieve the goals. Manager is the responsible person to help these
employees do their best in work. For example , monitoring the task that they don’t understand.
In addition, Shopee manager must have special knowledge and skills to make employees
improve themselves to be better in doing their work such as communicators to others.

As we know, our country had pandemic which is Covid-19. Our country has been lockdown
or in specific way is Movement Control Oder (MCO). This situation have a huge impact on
employees. For example, their motivation has dropped during Covid-19 because they must work
from home like using technology as a platform to keep updating and communicating to each
other’s and only certain worker that allowed to work in company. In order to keep the business,
personnel in Shopee got their vaccine. Shopee prioritize to the teams that working in warehouse
because this department face the highest risk and have the most potential interaction with
shoppers. Great leader must think ways to protect their employees to make sure their employee’s
work run smoothly.

3.4 Controlling

The last stage in managing a firm is controlling which is managers have important role to
monitor and regulate how efficiently and effectively an organization and the employees
performing their job to achieve the goals. For instance, Shopee performance standard is their
buyers should give their feedback when using the services. Also, employees have to monitor the
number of product that customers have returned its because manager can make improvement
next time.
Next, Shopee performance standard is that their buyers will have different product, quality
and price based on the seller. So, the buyers will be able to choose carefully based on their needs
and wants. From that point, managers can measure the actual performance by result
from outputs. If the standard cannot be reached, Shopee must change the way work activities
to solve the problem. Hence, Shopee must risk taking everything to control the system.

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4.0 Conclusion
The initial stage of operating a firm is planning, and inadequate preparation is a
significant issue. Shopee should continually check that the development plans they use stick to
the S.M.A.R.T. goals' requirements. To better fit the Shopee's organizational structure, the
company could modify its organizational structure. The teams operating in the warehouse are
given priority by Shopee since they are exposed to the greatest risk and have the greatest
opportunity for interacting with customers. To ensure that their employees' work goes
smoothly, great leaders must consider measures to protect their workers. Shopee managers
play a crucial role in regulating the efficiency and effectiveness of an organization's
management.
4.1 Recommendations
4.0.1 Focus On the Whole System
"The merchant is selling things that are not the same as what is advertised on the
website," one of Shopee's own customers remarked. The business can address the issue by
enacting stricter procedures for the seller prior to the delivery of the customer's items through a
comprehensive system. The advertised item will be returned to the reseller if it doesn't match
the requirements. Companies must also take firm action against dishonest businesses, such as
adding their stores to a blacklist. The Shopee shopping experience will result in more satisfied
customers. Companies, vendors, and customers all profit from one another. After
implementing these technical advancements, businesses can retain performance and enhance
client feedback.
4.0.2 Upgrade Shipping Option
Nowadays, people share their ideas on a variety of platforms and social media sites.
And from the observations, people have been complaining about the shipping option that
cannot be selected anymore. Shopee began as an online marketplace where clients could select
their preferred couriers and shipping methods, but it appears that Shopee has discontinued this
service. Customers will have positive perceptions of Shopee if they enhance their
technological capabilities and give the option back to the users. They'll start selecting Shopee
once more as their online purchasing destination.

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4.0.3 Lower Shipping Price
Shopee may think about improving its financial situation given that most of its users
have moderate incomes by reducing shipping costs and providing more discount couponsto
customers as in the past. Customers have expressed dissatisfaction over the increased delivery
costs and the loss of shipping coupons. The promotion offering "Free Shipping for orders over
RM15" will draw in a lot newer customers. Additionally, shipping costs these days are not
even realistic. Customers will feel horrible about this because they will have to spend more
money on delivery than they will on their purchases.

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 REFERENCES

“4 Challenges D2C Lazada Sellers and Shopee Sellers Face in Marketplaces (and How to Solve

Them).” Split Dragon, 11 Jan. 2022, blog.splitdragon.com/4-challenges-d2c-lazada-

sellers-and-shopee-sellers-face-in-marketplaces-and-how-to-solve-them/.

“10 Common Causes of Delayed Deliveries - ShipTrack – Track Anything, Anywhere!”

ShipTrack, shiptrackapp.com/blog/10-common-causes-of-delayed-deliveries/.

Shopee. “Come Make History with Us | Shopee Careers.” Careers.shopee.com.my, 2022,

careers.shopee.com.my/about.

“Shopee Org Chart.” THE ORG, theorg.com/org/shopee.

“Planning, Organizing, Leading, and Controlling | Principles of Management.”

Courses.lumenlearning.com,courseslumenlearning.com/atd-tc3-

management/chapter/planning-organizing-leading-and-controlling/.

“Shopee Remains Steadfast by Stepping up Initiatives during Covid-19.” The Malaysian

Reserve, 20 May 2020, themalaysianreserve.com/2020/05/20/shopee-remains-steadfast-

by-stepping-up-initiatives-during-covid-19/.

“5 Major Challenges Faced by E-Commerce Sellers and Ways to Overcome It!”

blog.sellinall.com/2020/03/5-major-challenges-faced-by-e-commerce_12.html.

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APPENDICES

Figure 1: Shopee Website

Figure 2: Our Values

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