MGT162 : FUNDAMENTALS OF MANAGEMENT

TITLE : WANPAKU COFFEE MACHANG

GROUP MEMBERS:

NO. NAME NO. MATRIKS

1. ANTASYA BINTI AZAHAR 2021867864

2. KHAIRATUL NAJWA BINTI MAT RONI 2021833302

3. MIMI NAJIHAH BINTI KOMAR 2021861496

4. NURKHAIRUNISA BINTI ZAHARI 2021207348

PREPARED FOR : MADAM ROSFATIHAH BINTI CHE MAT

DATE SUBMISSION : 22 JUNE 2023

 ACKNOWLEDGEMENT

First of all, we want to express our gratitude to Allah S.W.T and his messenger, Prophet
Muhammad S.A.W, for showering us with blessings throughout our interview work and giving
us the strength to finish our group project within the due date. Next, fully respect our best
lecturer, Madam Rosfatihah Binti Che Mat, for helping us to complete this assignment. We
were given the task of choosing any food company and create a report based on the topic of
business management that we had learned. She is like a source of inspiration to us because
she is always willing to answer our questions and provide us with the knowledge that we need.
Without her support and encouragement throughout this assignment, we may not have
completed this group project successfully.

We are also thankful to every group member because we cooperated very well when doing
this group project and always helped each other when someone needed help. The
accomplishment of this task was due to the contribution of each member. We were always
there to support one another, and that is what allowed us to remain a group until this group
project was completely done.

Not forgetting to all Wanpaku staff for taking the time to interview with us. We really appreciate
it because the manager is really helpful in answering our questions about the cafe. We hope
Wanpaku Coffee can expand its business internationally and gain a lot of customers in the
future because they deserve more recognition from others.

Last but not least, we would like to thank everyone involved in this group project directly or
indirectly. We would also like to apologize for any mistake in carrying out this task and hope
this report will bring benefit to others.
 TABLE OF CONTENT

NO. CONTENT PAGES

1. INTRODUCTION 1-2
❖ Company Background
❖ Levels Of Management
❖ Types Of Managers

2. PLANNING 3-4
❖ Vision
❖ Mission
❖ Types Of Plans

3. ORGANIZING 5-7
❖ Types Of Departmentalization Structure
❖ Types Of Organizational Structure

4. LOCUS OF DECISION MAKING 8

❖ Program Decision & Non-Program

5. MOTIVATION 9 - 10
❖ Motivation Theories

6. LEADING 11
❖ Leadership Theories

7. CONTROLLING 12 - 13
❖ Types Of Control
❖ Process Of Control

8. CONCLUSION 14

9. REFERENCES 15

10. APPENDICES 16 - 18
 INTRODUCTION

Wanpaku Coffee was established on 10th March 2022 at Machang. The first branch is open
at Shah Alam, and the name “Wanpa” was taken from the owner of the business. This
company is not a franchise because of the different menu and this business is a family
business. The owner of this cafe is Risham Bin Firdaus, and Auni Batrisyia Binti Razilan is the
administrator. There are three managers in charge of the bar, kitchen and service which are
Nur Athirah Binti Zakaria, Siti Nur Fatihah Binti Ali and Muhammad Faris Bin Muhammad.
Each part of the role is given by their speciality. Currently, they have twelve employees and
they have two shifts which are morning and night. This cafe is located at No 11 Bangunan
Hadapan Terminal Bas Ekspres, 18500 Machang, Kelantan. They chose this location because
it is located near the bus stop. This cafe will be the main attraction during the festival season
and school holidays. They import coffee beans from Kuala Lumpur.

Wanpaku Coffee also provides other drinks unrelated to coffee for someone who cannot drink
coffee, such as juice, chocolate drink and others. This cafe’s drink and food signatures are
Wan Premium Latte (hot), Wan Premium Shaken (cold) and chicken chop. Chicken chop
becomes the first choice because the price is very affordable, especially for students. This
cafe provides many facilities such as toilets, wifi and a power plug. This place is very
recommended for students to do their assignments here because it is very cosy and aesthetic.

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PRODUCT FROM WANPAKU COFFEE

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 PLANNING

Planning is the process of identifying objectives, formulating strategies, and creating

action plans to coordinate efforts in order to achieve organisational goals. In other words,
planning may also reduce the process of listing the tasks that are essential to the
organisation’s success.

VISION
People will be devoted and give their all if you treat them like family.

MISSION
One person, one cup, and one neighbourhood at a time, in order to uplift and nourish the
human spirit.

STANDING PLAN

Policy
● All employees are required to be punctual with the business organisation. Working time
start at 11:00 a.m. and end at 11:00 p.m. with two shift, for the first session, they decide
to start from 11:00 a.m. to 8:00 p.m. and for the second session, they divide to start
from 2:00 p.m. until 11:00 p.m.
● All managers and employees were needed to wear a specific uniform depending on
their department day. Referring to Wanpaku, their working attire is all black except on
Sunday, they will be wearing white T.

Procedure
● Before getting to work, all the employees need to make a verification of their
attendance by thumbprint.
● Remove all the accessories and wash their hands before entering the kitchen.

Rules
● No accessories such as rings, bracelets and fake nails while working, especially the
workers in the kitchen.
● Must be wearing the apron for the sake of keeping hygiene.
● Wear the cooking cap while cooking.
● They need to wear fully covered shoes and all-black attire except on Sunday (working
hours).

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SINGLE USE PLAN

Program
● Wanpaku is trying various ways and styles to produce palatable foods and drinks, also
in terms of their services. By that, Wanpaku can have a chance to increase its business
and fear to expand their regular and first-time customers.

Project
● Wanpaku has some creativity in the development of their business in order to attract
customers. In terms of food, all of their food is finger-licking good, while in terms of
location, they choose the strategic location which is near to the bus station in
Machang's town. Their reason is that all of the people from different destinations will
be attracted to their cafe.

Budget
● Their daily budget ranges from RM 2000 to RM 3000, but their target of the day is RM
5000 to RM 6000. When it comes to special events such as Hari Raya, Chinese New
Year, Deepavali or the end of the month, they will break their target which is they will
get RM 11000 per day.

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 ORGANIZING

● TYPES OF DEPARTMENTALIZATION :

Organising is the process of defining which tasks need to be completed, who will complete
them, and how they will be managed and coordinated. The departmentalization structure of
Wanpaku Coffee Machang is a functional structure.

Functional structure is grouping based on functions performed. The tasks will be

divided into several groups, such as bar, kitchen and service and each group will be headed
by a functional manager, who in turn is supported by employees. Functional managers must
have good experience in the positions they manage. The purpose is to make sure that they
can handle their staff and the staff can utilise their abilities effectively and efficiently to support
the organisation's objectives and goals.

The benefit of a functional structure is employees will be experts in their jobs and will be easy
to supervise. Additionally, functional structures have negative effects, the organisation will take
longer to make decisions and it will be challenging to monitor employee performance.

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 ● TYPE OF SPAN OF MANAGEMENT :

The span of control of Wanpaku Coffee’s organization is narrow span, which means a tall
structure because the manager supervises a smaller number of employees. A narrow span of
control depends on the work that the business does. With a narrow span of control, the
employee will get more advice and help from their managers to do their work.

The narrow span of control has advantages and disadvantages. The advantages of a
narrow span are closer supervision and better company growth opportunities. Closer
monitoring allows closer interaction and cooperation between managers and employees. It is
beneficial because the work will be completed in teams. There is also a need for more
managers overall with fewer direct reports. The narrow span of control provides more options
for growing into a management position within the company because there are more available.

The disadvantage of the narrow span is increasing supervisory involvement in work

can lead to less delegation and empowerment and more micromanagement. besides, tends
to result in poor communication and too much gap between the organization’s top and bottom
levels.

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A diagram of the organization structure of Wanpaku Coffee Machang :

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 LOCUS OF DECISION MAKING

Locus of decision making is a method that is used by company to use centralization or

decentralization. Centralization of control is an activity or organization under a single authority.
In this method, the top manager has all the power to decide for the company. Therefore,
decentralization is the transfer of control of an activity or organization to several local
authorities rather than a single authority.

As for Wanpaku, the decision making is based on decentralization. Several problems

of the company need to be solved by each level of management. The decision needs to be
discussed and approved by everyone. Decentralization is a method that is good for decision
making. The problem can be settled easily by discussing and by giving ideas that can achieve
Wanpaku something better. Moreover, several pieces of information can be accessed to make
Wanpaku’s company a good company.

The outcome of the decision will make the quality of Wanpaku increase. Group
decision-making has its own advantages, group decision-making can enhance communication
of the decision, may result in something good, gain a broader perspective owing to differences
of perceptions among group members and make a great group commitment. Decentralization
has become the choice for Wanpaku because they want to fix problems and gain information
quicker. For example, Wanpaku is located at Machang and it is not a busy town, the company
is always visited by regular customers. They have to think of the best solution for their
company and income for their company.

Quality and decision making is important for any organization. An organisation need to
make good decision-making because it is mainly important in the face of increasing
competition and greater uncertainty from exposure to more competitors.

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 MOTIVATION

Motivation is a set of sources that cause people to behave in certain ways. It is a psychological
process that gives purpose and direction to behaviour. Motivation is also derived from the
word ‘motive’, which means needs, desires, wants or drives within the individuals. It is the
process of stimulating people to action to accomplish the goals.

Wanpaku uses Maslow’s Hierarchy of Need Theory to motivate their employee to work
great and be good staff at this cafe. In this theory, there are five basic needs, such
psychological needs, security or safety needs, belonging or social need, self-esteem needs,
and self-actualization.

Psychological needs are the most basic needs to motivate their staff. Psychological
needs are survival-ensuring needs such as food, water and shelter. People need all of these
to survive their life. Wanpaku provides facilities to their staff such as a toilet and prayer room.
Wanpaku also opens at 3.30 on Friday to make sure they have enough rest. Furthermore,
Wanpaku has applied shifts at their cafe, for example, 10.30 a.m to 4.00 p.m first shift and
4.00 p.m to 11.30 p.m second shift. They apply this shift to ensure their staff are energized
and have the energy to work the next day.

Security or safety needs are the second level of needs. Safety is a need for security in
daily physical and interpersonal events. In Wanpaku, they provide insurance for their
employees and the policy of the insurance will protect them during work. Wanpaku also has
CCTV to see everything that happens every day. Wanpaku’s manager always makes sure
that there is no injustice in the treatment of their employees.

Belonging to or social is a need for finding and establishing friendly interpersonal

relationships and giving love a sense of belonging. Employees need social interaction to
strengthen the bond between team members. In Wanpaku, they will organize an event such
as family day, Hari Raya open House and iftar sessions every year.

Self-esteem requirements are also referred to as growth requirements. Self-esteem is

a need for the high regard of others. Examples of self-esteem needs are job titles, good offices,
opportunities for advancement, prestige, status, appreciation, and recognition. Every month,
at Wanpaku, they will up employees’s salary based on the work performance of their
employees. This will make employees will be more motivated to do their job.

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 Self-actualization needs the company will realize its potential for continued growth and
individual development. In Wanpaku, managers will emphasize their employees in designing
jobs or they make assignments to capitalize on employee’s unique skills. Managers will
monitor every employee that manages the assignment. Therefore, managers in Wanpaku give
the opportunity to involve in decision-making and the result is the employees can learn new
things.

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 LEADING

Leading is motivating and directing the organisation's members so that they contribute to the
achievement of the organisation's goals. Every company must have one leader to create a
vision of the future, devise a strategy for achieving it, and communicate it so that everyone
understands and believes in it. The same goes for Wanpaku Coffee. The owner of Wanpaku
Coffee, Risham Bin Firus, plays an important role in the company, for example, he makes
contributions to the organisation, encourages employees and motivates them to generate
good work.

There are three leadership approaches which are the trait approach, behavioural
theories and contingency theories. Wanpaku Coffee used behavioural theories in their
organisation by Michigan University Studies. Production-Centered Behavior and Employee-
Centered Behavior are the two basic types of leadership behaviours. Firstly, Production-
Centered Behavior is leader behaviour that focuses primarily on how well their employees
perform their job. For example, the manager of Wanpaku Coffee needs to set rigid work
standards, organise tasks down to the last detail, prescribe work methods to be followed and
closely supervise employees’ work. Secondly, Employee-Centered Behavior is leader
behaviour that focuses primarily on subordinates as people. As a manager1 (bar) of Wanpaku
Coffee, she plays a vital role in encouraging employee participation in goal setting and other
work decisions.

Power is the ability to marshal human, information, or material resources to get

something done. Two major types of power are position power and personal power. Position
power is inherent in the formal position that the leader holds. French and Raven, researchers
at the University of Michigan, identify five position powers which are legitimate, information,
coercive, expert and reward. Wanpaku Coffee uses reward power to encourage their
employees to work hard. For example, give cash prizes, salary increases, bonuses, and
vacation days to employees if their sales that day meet a certain quota. Next, personal power
is derived from the interpersonal relationship between a leader and his follower, including
referent and expert. Wanpaku Coffee has expert power because their cafe has the ability to
influence others to buy and try their coffee. Not only that, Wanpaku Coffee also influences
small businesses to build coffee shops for people to enjoy, relax and study with their friends.

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 CONTROLLING

Important problems with the control management role are faced by managers in organisations.
Controlling is the practice of policing organisational activities to ensure that actual performance
complies with anticipated organisational standards and objectives. According to the definition
of controlling, managers create suitable standards, assess ongoing performance against
those standards, and ensure that relevant actions are taken.

There are three types of control. It is feedforward control, concurrent control and
feedback control. these three types of control Wanpaku use. They focused on identifying
unwelcome content and financial resources that are used as inputs to the information process.

Firstly, feedforward control. This type of controlling is to prevent problems before they
occur by monitoring performance inputs. In order to be effective, employees must be directed
towards managers about their future. They need to be trained for at least 2 weeks before
becoming a permanent baristas. By that, the manager can correct internal or external
problems. manager and employees have a workable feedforward control system.
1. examining the planning and control system thoroughly and carefully
2. creating a system model
3. checking a model frequently to make sure the input variables are specified and
that their relationships still reflect reality
4. gathering input variable data on a regular basis and entering it into the system
5. Regularly evaluating the differences between actual input data and intended
inputs and determining the influence on the anticipated outcome

Concurrent control is the second. sometimes called screening management.

Managers and staff are involved in controlling ongoing transformation-related activities. In
order to make sure they adhere to organisational standards. When decisions are made on
whether to move forward with work on products or services, take corrective action, or halt
completely, managers and employees are involved.
Last but not least is feedback control. often referred to as output control or previous action
control. When feedforward and concurrent controls are impractical or too expensive, we use
feedback control.

Basically, Wanpaku used feedforward control, concurrent control and feedback

control. by feedforward control, Wanpaku can prevent future problems before that occur. Next,

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concurrent control lets us know about ongoing activities that will make Wanpaku dishes good.
Last but not least, feedback control, by this type of control, we can know the good feedback
or bad feedback. By that, Wanpaku can improve their performance in promoting their
business. In conclusion, Wanpaku used the three of them.

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 CONCLUSION

In conclusion, Wanpaku Coffee Machang is a food business. Wanpaku Coffee

Machang has many branches, but this business is not a franchise because the menu is
different. A clear vision and mission can help and inspire Wanpaku Coffee Machang
employees to achieve the targets. Secondly, planning by the top management of this company
is very structured and leads to very effective system control. In addition, the company chooses
a good organisation structure that can help employees understand and carry out their
responsibilities fairly. Next, a very effective decision-making process can quickly solve all the
problems and challenges. This company uses the right way of giving advice and guidance to
its troubled employees. In addition, leadership advice that advises employees to achieve
company goals can also generate good work and encourage teamwork. The way Wanpaku
Coffee Machang managers control every activity in this business makes this business run
smoothly every day. Last but not least, the owners, managers, and employees have an
important role in ensuring that the company is operating successfully and profitably.

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 REFERENCES

1. food business means - Search (bing.com)

2. https://yourerc.com/blog/post/span-of-control-how-many-employees-should-your-
supervisors-
manage#:~:text=Span%20of%20control%20refers%20to,or%20more%20hierarchical
%20organizational%20structure.
3. https://www.luqmanzakaria.com/2022/05/wanpaku-coffee-machang-kelantan.html
4. https://www.coursesidekick.com/management/study-guides/boundless-
management/behavioral-approach

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APPENDICES

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