BACHELOR OF ESTATE MANAGEMENT (HONS)

COLLEGE OF BUILT ENVIRONMENT

UNIVERSITI TEKNOLOGI MARA PERAK BRANCH
CAMPUS OF SERI ISKANDAR
GROUP ASSIGNMENT FOLDER
Course Code: ENT600

Course Name: TECHNOLOGY ENTREPRENEURSHIP

Name Matric No.

MUHAMMAD NAIM BIN HAMADAN 2022786995

Assignment Title: Self-Checkout Kiosk at FamilyMart

Due date of Assignment: 5/11/2023

Submission Date: 5/11/2023

DECLARATION: We declare that no part of this assignment has been copied from others
person work except where due to acknowledgement is made in the text and no part of
this assignment has been written for me by any other person except where such
collaboration has been authorized by the lecturer concerned.

Signature : NaemHamadan Date: 5/11/2023

TABLE OF CONTENT

EXECUTIVE SUMMARY 2
INTRODUCTION 3
Background of Study 3
Purpose of Study 3
COMPANY INFORMATION 4
Background of Company 4
Product / Service 5
Business Strategy and Operational 6
COMPANY ANALYSIS 7
SWOT Analysis 8
Strengths: 8
Weaknesses: 9
Opportunities: 10
Threats: 11
FINDING OF PROBLEMS 12
DISCUSSION 13
REFERENCES 14
EXECUTIVE SUMMARY
This endeavor represents an exploration of the practical application of theoretical concepts, a
requirement for all students at our university as part of their academic assessment. In this
specific case study, I embarked on a journey of research and innovation, conceiving an idea to
introduce self-checkout kiosks at FamilyMart, a popular convenience store chain. The
foundation for this study involved gathering comprehensive information about the company,
leveraging both primary and secondary sources.

The case study unfolds in two distinct segments which the first involves collecting and
presenting crucial data about FamilyMart itself. In the second part, a thorough examination of
the challenges faced by the store is carried out, identifying the issues it currently encounters.
Subsequently, viable solutions are proposed, accompanied by recommendations aimed at
enhancing the overall customer experience and operational efficiency of the store.

Furthermore, my research delves into the technological aspects of self-checkout kiosks and how
they align with the specific needs and goals of FamilyMart.

Concluding this comprehensive study, the focus shifts to a meticulous examination of the
financial implications of implementing self-checkout kiosks at FamilyMart. This involves an
investigation in relation to the kiosk implementation and the measurable results they achieve.

In the context of this case study, it becomes evident that every company, including a
convenience store like FamilyMart, must formulate a multifaceted strategy to achieve its
objectives. This strategy encompasses not only technology adoption but also efficient and
effective management practices. In a pragmatic application of theoretical knowledge, I have
incorporated a SWOT analysis to evaluate the store's real-world dynamics, understanding its
strengths, weaknesses, opportunities, and threats. This analysis serves as a vital tool for
discerning the store's current position and, more importantly, for identifying avenues for
improvement.
INTRODUCTION

Background of Study

The ENT600 technology entrepreneurship course is required of UiTM students who continue
their education towards a bachelor's degree. The purpose of that is to provide college students
direction and introduce them to the corporate world. Through this course, students will do case
studies of any business or firm, including SME companies.

Subsequently, the students will investigate the issue and determine how to resolve the problem
that arises within the organization. Upon completing the case study, students stand to gain
expertise in handling business-related tasks. The potential exposure to the business
environment and acquisition of knowledge about how the firm and business are operated
represents the next benefit. In order to identify the issues they were facing, a case study was
conducted with the FamilyMart in Malaysia.

Purpose of Study

The purpose of this case study is to identify the issues that FamilyMart Malaysia Seri Iskandar
Branch is now encountering and which call for a technology-based solution. We will also offer
the fixes for the issues in this case study. Furthermore, this case study presents a potential
avenue for suggestion or ideation on product enhancement, with the goal of reaching the
highest level possible while catering to the needs of the end user. Additionally, we want to look
into the core components of a successful entrepreneur in the business sector and how they
function, including the company's history and operational strategy, among other things, in this
case study.
COMPANY INFORMATION

Background of Company

FamilyMart, a Japanese convenience store chain headquartered in Tokyo, was founded in 1973
and has expanded internationally, operating in multiple countries across Asia. Their stores offer
a wide variety of products, from snacks and beverages to ready-to-eat meals and daily
necessities. FamilyMart follows a franchise model, allowing individuals to own and run their own
stores. In 2016, the company merged with the Japanese retail conglomerate Itochu, and it is
known for its innovative use of technology, including self-checkout kiosks, digital payment
options, and online ordering for delivery or in-store pickup.

FamilyMart, the Japanese convenience store chain, has a presence in Malaysia. FamilyMart
entered the Malaysian market, offering a range of convenience store products, similar to its
operations in other countries. They have a network of stores across various locations in
Malaysia, serving snacks, beverages, ready-to-eat meals, and daily necessities.

As of my knowledge from Google, FamilyMart Malaysia was a joint venture between QL

Resources Berhad and FamilyMart Co., Ltd. QL Resources Berhad, a Malaysian conglomerate,
played a significant role in operating FamilyMart stores in Malaysia. FamilyMart is founded by
the Seiyu Group from Tokyo, Japan and has stores worldwide all around Asia.
Product / Service

Self-checkout kiosks are innovative, user-friendly systems designed to streamline the payment
and checkout process for customers in retail stores. These kiosks offer a range of benefits,
enhancing the overall shopping experience.

The product called self-checkout kiosks typically consist of a touchscreen interface, barcode
scanner, and payment terminal. Customers can scan the barcodes of their selected items, view
the itemized list, and make payments using cash, credit cards, or mobile payment methods.
After payment, a receipt is generated, and customers can bag their purchases.

On part of the benefit, the primary advantage of self-checkout kiosks is the significant reduction
in wait times. They empower customers to take control of their checkout process, leading to
faster transactions. Additionally, self-checkout kiosks can increase privacy, as customers can
maintain their personal space during the payment process. For retailers, these kiosks can
reduce the need for additional cashier staff, saving on labor costs, and they often result in higher
customer satisfaction due to the convenience and speed they provide.

Other than that, how the self-checkout kiosk works is that customers begin by scanning their
items' barcodes, and the kiosk registers each product. The system tallies up the total cost, and
customers select their preferred payment method. They can pay with cash, insert a credit or
debit card, or use a mobile payment app. Once payment is confirmed, the kiosk prints a receipt,
and customers can bag their items. In cases where assistance is required, an on-site staff
member can step in to provide help. This self-checkout process enhances the efficiency and
convenience of shopping for customers and is a valuable addition to many retail stores.
Business Strategy and Operational

Implementing a successful strategy for self-checkout kiosks in a retail setting requires careful
planning and execution. Here are key aspects to consider when developing a strategy for
self-checkout kiosks:

On the part of Customer Education to ensure that customers are familiar with how to use the
self-checkout kiosks. This may involve providing clear instructions, signage, and on-screen
prompts to guide them through the process. Some retailers offer demonstrations or tutorials to
first-time users.

For the Placement and Accessibility, it should strategically position self-checkout kiosks within
the store to maximize their accessibility and convenience. They should be placed in high-traffic
areas, near entrances, or close to popular product categories. The most important strategy is
Staff Assistance which staff members available nearby to assist customers who encounter
difficulties or have questions. This ensures a smooth experience for all customers and can
address any technical issues promptly.

The product should be User-Friendly Interface which is user-friendly interfaces that are intuitive
and easy to navigate. This minimizes the learning curve for customers and encourages
adoption. In terms of Security Measures, implement robust security features to prevent theft or
fraudulent activities at self-checkout kiosks. This may include weight sensors, security cameras,
and transaction monitoring. Moreover, Product Placement and Packaging should optimize
products for easy scanning. Clear barcodes, visible prices, and appropriate packaging help
customers scan items accurately.

Other than that, accept Multiple Payment Methods which cater to a wide range of customers,
ensure that the kiosks accept various payment methods, including cash, credit/debit cards, and
mobile payment apps. Furthermore, regularly maintain and update the kiosks to ensure they are
in working order. Out-of-service kiosks can frustrate customers and negate the benefits of
self-checkout. The most important is Scaling and Expansion. It considers expanding the
self-checkout kiosk system as the demand grows or as your business expands. More kiosks
may be needed during peak hours or in larger store locations.

A well-executed strategy for self-checkout kiosks should aim to enhance the customer
experience, improve store efficiency, and drive customer adoption. Regularly evaluate the
effectiveness of your strategy and be prepared to adapt it based on changing customer
preferences and technology advancements.
COMPANY ANALYSIS

SWOT Analysis

For the SWOT analysis implementing self-checkout kiosks at FamilyMart, a convenience store
chain:

Strengths:

Enhanced Customer Experience:

Self-checkout kiosks offer customers greater control and convenience, reducing wait times and
providing a modern shopping experience.

Efficiency:

Self-checkout kiosks can lead to faster transactions, allowing FamilyMart to serve more
customers during peak hours without expanding cashier staff.

Labor Cost Savings:

Reduced reliance on cashier staff can lead to cost savings in terms of labor expenses.

Improved Data Collection:

Self-checkout kiosks can collect valuable data on customer behavior, helping FamilyMart make
data-driven decisions to optimize operations and product offerings.
Weaknesses:

Technical Issues:

Technical glitches or malfunctions in self-checkout kiosks can lead to customer frustration and a
negative shopping experience.

Initial Investment:

Installing and maintaining self-checkout kiosks can be expensive, and it may take time to recoup
these costs.

Customer Adoption:

Some customers may be resistant to self-checkout technology, especially if they are unfamiliar
with it. This can result in slower adoption rates.

Security Concerns:

Self-checkout kiosks can be vulnerable to theft or misuse, requiring strong security measures.
Opportunities:

Increased Sales:

Faster checkout times and a more convenient shopping experience can attract more customers
and lead to increased sales.

Competitive Advantage:

Offering self-checkout kiosks can set FamilyMart apart from competitors and attract tech-savvy
customers.

Customization:

FamilyMart can use data from self-checkout kiosks to customize product offerings and
promotions, increasing customer loyalty.

Expansion:

FamilyMart can explore expanding self-checkout kiosks to more locations or introduce new
features to enhance the customer experience.
Threats:

Customer Resistance:

If customers prefer traditional cashier-operated checkouts, the adoption of self-checkout kiosks

may be slower than expected.

Technical Issues and Downtime:

Technical glitches or downtime can disrupt store operations and frustrate customers.

Security Risks:

Theft, misuse, or fraud at self-checkout kiosks can pose security threats and result in financial
losses.

Regulatory Changes:

Evolving regulations related to self-checkout, data privacy, or payment processing could impact
the use and operation of kiosks.

In conclusion, while the implementation of self-checkout kiosks at FamilyMart presents

numerous opportunities for improving customer experience and operational efficiency, it also
comes with challenges related to customer adoption, technical issues, and security concerns. A
successful strategy will require addressing these weaknesses and threats while capitalizing on
the strengths and opportunities presented by self-checkout technology.
FINDING OF PROBLEMS
The factors contributing to excessive queues at the payment counter in FamilyMart are Peak
Hours and High Traffic. During peak hours, such as evenings and weekends, FamilyMart
experiences a surge in customer foot traffic. This surge often leads to long lines at the payment
counter as many shoppers arrive at the store simultaneously, causing delays in processing their
purchases.

Other than that, Limited Checkout Counters at FamilyMart stores may have a limited number of
checkout counters available for customers. When the number of available counters is
insufficient to handle the high customer demand during busy hours, it can result in lengthy
queues.Moreover, Complex Transactions which some shoppers may have more complex
transactions, such as purchasing a variety of items, using multiple payment methods, or seeking
assistance from cashiers. These complex transactions can take longer to process, leading to
slower checkout times for all customers.

Furthermore, in part of Inefficiencies which in the checkout process, such as slow cashier
service, inadequate staffing, or technical issues with cash registers, can contribute to extended
waiting times. When the checkout process is not operating smoothly, customers have to wait
longer to complete their purchases. The Product Placement and Packaging also can contribute
which product with unclear barcodes, bulky packaging, or items that require extra handling can
slow down the scanning and bagging process at the checkout counter. This leads to delays and
longer queues as cashiers and customers grapple with more challenging items.

Moreover, payment methods in which Customers use cash, often require more time to count
and process compared to electronic payment methods, can lead to slower transactions.
Additionally, customers who are unfamiliar with certain payment methods may require extra
assistance, further contributing to extended wait times. In addition, Social Interaction between
customers may engage in social interactions with cashiers or fellow shoppers during the
checkout process. While these interactions can be positive for customer service and
engagement, they can also lead to extended wait times as customers take extra time at the
counter.

Addressing these factors requires careful operational planning, staffing adjustments during peak
hours, optimizing product placement and packaging, and providing clear instructions and
assistance to customers. Reducing inefficiencies and promoting quicker payment methods can
help mitigate the issue of long queues at the payment counter in FamilyMart stores.
DISCUSSION
The issue of long queues at the payment counter in FamilyMart is a recurring challenge that
poses various complexities for both the store and its customers. The problem intensifies during
peak hours, which typically occur in the evenings and on weekends when the store experiences
a significant surge in customer foot traffic. This sudden influx of shoppers converging upon the
store creates a bottleneck at the payment counter, with many customers queuing up
simultaneously, all vying to complete their purchases promptly. The limited number of checkout
counters further compounds the issue, particularly when the available counters are insufficient
to accommodate the high customer demand. This situation can be exasperating for customers
as they experience delays and might perceive the store's operational efficiency as lacking.
Moreover, the complexity of certain transactions, such as customers purchasing multiple items
or utilizing a variety of payment methods, can substantially slow down the overall checkout
process, affecting everyone in the queue. Inefficiencies within the checkout process, such as
sluggish cashier service or technical malfunctions with the cash registers, can exacerbate
waiting times, adding to customer frustration.

Additionally, product placement and packaging complexities, such as items with unclear
barcodes or bulky packaging, can further complicate and prolong the scanning and bagging
process. Furthermore, the payment method used by customers, particularly those opting for
cash, tends to be slower to process compared to electronic payment methods. Customers
unfamiliar with certain payment methods may require additional assistance, which prolongs the
checkout time. Lastly, although social interactions between customers and cashiers can foster a
sense of engagement and excellent customer service, they can also inadvertently contribute to
extended waiting times as customers take more time at the counter. Addressing this
multifaceted issue effectively requires a strategic combination of solutions, including optimizing
staffing during peak hours, promoting self-checkout alternatives, streamlining product
placement, and encouraging the adoption of quicker payment methods, all with the aim of
enhancing the checkout process and ultimately improving the overall customer experience.
REFERENCES
- Official website of FamilyMart
- http://kioskgroup.com/pages/self-service-kiosks-101
- Google Image