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"OldTown White Coffee" in Malaysia

Student’s Name

Institutional Affiliation

Course Name and Code

Professor’s Name

Due Date
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"OldTown White Coffee" in Malaysia.

Question 1.

Background of the Company

OldTown White Coffee was founded in 1999 by the founders, namely Goh Ching

Mun and Tan Say Yap, in the city of Ipoh, Malaysia. The cafe provides Malaysian-style

coffee, beverages and local cuisine of its own, with special coffee beans carefully roasted in

the traditional Ipoh manner. Over the time, OldTown White Coffee has been widening the

business scope to encompass many other food and beverage options in order to meet both

local and international tastes (Deraman, 2022). Presently, OldTown White Coffee is not only

well-known in Malaysia but also holds many outlets in different parts of the country and has

expanded its operations to Singapore, China, and Australia internationally.

Factors Contributing to Success

A range of factors are responsible for the OldTown White Coffee boom. Firstly, its

unique selling proposition is its own traditional Malaysian-style coffee which appeals to

customers who want a beverage that brings their own national identity. Furthermore, the

franchising mode applied by this company has made the business growth seamless and

information widespread, which has in turn helped the company to pounce on emerging

market opportunities. In addition, OldTown White Coffee by way of choosing quality

ingredients, implementing service standards, and strategic location selection has resulted in

its customers being loyal and having a positive brand reputation (Gogrichiani, 2022).

Other than the explanation provided, the achievement of OldTown White Coffee also

goes hand in hand with its strong brand image and marketing tactics. The complaint has

presented itself successfully as a bedrock of the popular Malaysian coffee culture, exploiting

the nostalgic pictures and storytelling to create a bond between themselves and the
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consumers. By using the approaches of targeted advertising campaigns, brand engagement,

social media, and experiential marketing events, OldTown White Coffee has been able to

create brand recognition and brand loyalty among its consumers (Hasanah & Aziz, 2021).

In addition, the firm's interests to be innovative and develop new products have

significantly contributed to its growth. OldTown White Coffee is always coming up with

different menu items, seasonal gives and the so-called special time deals in order to maintains

its offerings varied and eye-catching, while the tendency of customers is changing too.

OldTown White Coffee remains aware of latest market trends, always using customer

feedback as a guide in order to prove its dedication to responsive and customer-oriented

approach in meeting the needs and expectations of the numerous customer segments the

company has (Hasanah & Aziz, 2021).

It is another factor vital to the success of the coffee shop because of the existing

strong relationship of the franchisor and the franchisee. The franchise provides all kinds of

training programs, assistance with operations and marketing for franchisees. This makes the

organization successful all the while being fully congruent with the branding protocols. It has

happened as a result of the team building attitude which implies unity, inter-dependence and

mutual respect of both franchisors and franchisees thus the team growth and improvement.

Additionally, OldTown White Coffee's CSR (Corporate Social Responsibility)

initiatives have received a favourable reaction from society and resulted in a goodwill for the

business. The entity engages in philanthropy in the community, conservation of the

environment and undertakes community development projects, all aimed at ensuring that

other than profitability, the company has a positive impact on the society. While OldTown

White Coffee applies its operations to the world of values and ethics, it gets high respect and

regard from customers, employees, and shareholders (Duca & Gherghina, 2019).
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Challenges Faced by Operators and Navigation

While this shop had success, operators of OldTown White Coffee franchises face

some obstacles. This is such competition, in the food and beverage industry and those of

rising operational costs and changing consumers' preferences. To address the issues, the

franchise operators should formulate new offerings, create exciting experiences and enhance

operational efficiency (Keni et al., 2021). Furthermore, marketing techniques which are well

build and continued help of the franchisor are indispensable in maintaining competitiveness

and overcoming hardships.

While the points mentioned above are arduous challenges, owners of OldTown White

Coffee franchises also wrestle with regulatory compliance problems and labor-related issues.

As businesses that operate within the sector of food and beverages, the role of franchise

operators grants them the responsibility to meet specific health and safety regulations, as well

as the required food handling standards, imposed by local authorities. Utilizing top-notch

supervision and putting resources into training is the best solution to face this regulatory

complexity, which is often compounded with higher operational costs.

Additionally, the process of recruiting and retaining the highly qualified and

productive personnel is the hardest one for the franchisees. Darkness of labour shortage and

high turnover rates permeate in the hospitality area, it stands as a challenge to have a team

which is committed to corporate values as well as to service standards. In order to overcome

this hurdle, franchisee operators must apply effective recruitment strategies, award

competitive wages and perks, and provide a template for career advancement and skills

development to nurture employees' job satisfaction and loyalty (Сайдивосилов, 2023).

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Apart from this, the ever-changing technology bears both emergence areas and threats

for OldTown White Coffee franchise owners. Supposing technology can go a long way to

simplify procedures, provide better experiences and upgrade productivity, adopting the new

changes, and integrating newly invented systems may however be difficult. The franchise

operators must consider running ongoing training and support programs for the staff members

in order for them to be technology efficient and proficient.

Furthermore, brand capacity and quality control for franchise owners to monitor and

ensure consistency at all of their locations might be a problem too. Think about three

different types of management styles, operational practices, and customer experiences that

vary the brand reputation and lead to the reduction of customer loyalty. Franchisors should

provide franchise operators with operating manuals and conduct the audits of quality on a

periodic basis and do general support as well as guidance in order to preserve brand integrity

and replicate the same look of offices (Keni et al., 2021).

Faced by numerous challenges, operators of OldTown White Coffee formulation are

working hard to stay afloat in the competitive environment and manage costs, comply with

the requirements of those on top of employment, recruit and retain staff, adapt to technology

and maintain brand integrity. Yet, with a careful planning of strategy, regular support of

franchisor, and a productive work of operators, the industry of quick service will be resistant

to challenges of a dynamic food and beverage sector.

Future Plans for the Business

For the following stage, White Coffee OldTown planned to expand both domestically

and abroad. Company aims to diversify its market and invest into customized menu items

according to unique consumer demands. Lastly, Oldtown White Coffee utilizes technology

and digital platforms to increase customer engagement, optimize operations, and improve
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business exposure (Gogrichiani, 2022). Furthermore, the franchisor targets to continuously

provide education and guidance to franchise operators, ensuring that the enterprise remains

viable and profitable in the future.

As well as its work on the expansion, OldTown White Coffee is now deliberately

allocating its efforts to boosting its brand visibility and market presence through ground

breaking marketing campaigns. The business is planning to spend on strategic adverts, social

media publicity, and experiential marketing to create brand awareness and to get new clients

attracted. Through digital platforms and analytics, OldTown White Coffee intends to obtain

substantial information about consumer taste and habit. The data can be used for customized

marketing and tailored product offerings.

Also, OldTown White Coffee advocates for sustainable practices and social

responsibility as it pertains to businesses today. Continuing its long-term vision, the company

will integrate environment-friendly methods and use only natural ingredients, which will help

to reduce its environmental impact. OldTown White Coffee is trying to establish trust and

loyalty among consumers through the introduction of corporate social responsibility measures

such as community interaction initiatives and ethical sourcing practices (Hasanah & Aziz,

2021).

Along with that, the company reacts to the changing consumer behavior and tastes by

looking at ways to add more products into its current offerings and to move into new

categories. It could possibly incline toward adding healthy menu choices, the plant-based

alternatives and specialty beverages for the sake of changing dietary preferences and

lifestyles. Through constant innovation and being aware of evolving consumer needs,

OldTown White Coffee strives to remain the market leader by consistently keeping up with

consumer demands in an ever-changing food and beverage industry.

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It is in line with its aim of quality and customer satisfaction that OldTown White

Coffee is offering programs to both franchise operators and employees for staff training and

development and assuring the company's high service standards. Through extensive

education on product knowledge, customer service, and operational excellence, OldTown

White Coffee wants its employees to be catered to the utmost pleasure of customers (Duca &

Gherghina, 2019). As well, the organization is going to establish evaluation systems and

compensation schemes in order to stimulate and acknowledge best-performing staff members

within the organization.

Question 2

i) Is franchising in line with your career aspirations or do you have any concerns

surrounding the topic?

The franchise concept has dramatically changed my perspectives about my future

career path, with the case of business and use of the franchise considered. Through

franchising, we meet at one end individuals such ourselves who not only desire to run their

own companies but also to take advantage of some of the fundamental reasons for which

franchising is considered as the one of the best routes towards our business ownership (Mays

& Han, 2021). In my working experience of franchising, I realized its ability to replace a

detailed and ready-made commercial system, connection to an existing brand that possess a

wide acceptance in the market and a franchisor who is ever ready to assist and guide the

franchisee.

Being a Somebody who is creative and visionary, put Franchising at the top of the list

of the many options available as an outlet for entrepreneurial energy, which offers a certain

level of predictability and stability. Unlike independent startups which employ teamwork

process, a franchise has already built in the strategic framework for its success, including
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standardized operating procedures, marketing strategies, and training programs. This

structure not only clarifies and defines the typical vagueness and fuzziness usually

encountered in venture setups but also betters the chances of profitability and sustainability

forms the long term.

Moreover, I can usually grasp the nature of franchising that enlarges my view of

business opportunities and changes the way I think about the market. I took a look at different

franchises and how they worked in their own industries as well as other industries in general.

In doing this, I discovered and studied the fact that emerging trends, consumer choices and

other competition happening in the market can serve me a great well of knowledge

(Thodeson & Hsieh, 2017). Such awareness predestines me for the ability to anticipate and to

think strategically in advance of the most eligible franchising opportunities, to discover new

untapped markets and to take advantage of them.

Furthermore, my perspective for the future is franchising and this feeds the dream of

mine to change the lives of people around and all the known boundaries. A lot of franchises

provide services or products which address social needs and improve the quality of life by

tending to health, for instance, offering education or environmentally-friendly products.

Through establishment of a franchise, I can work to the enhancement of economic prospects

of my local community as much as the realization of my dream and own personal existence

(Sathe, 2023).

Comprehensively, my perception of franchising arouses my ambition to embark in the

future path of the business career that fuses entrepreneurship, business management, and

social equity. The goal to establish a thriving and long-lasting business which is not only

meant for increasing our sales but also improving the lives of customers, staff, and the society
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on the whole can be done by exploiting the advantages and opportunities of the franchising

industry.

ii) What are the benefits of franchising?

Brand franchising is a business strategy that has an array of advantages for both

franchisors and franchisees; hence it is a model that has gained so much appeal among start-

ups and established companies. The following are some of the key benefits;

Proven Business Model: Resonating with the franchisor's tested and validated

business model, the franchisees will be able to join the ranks of successful businessmen.

There is less probability to face failure while taking advantage of these opportunities since

you are not required to start a new business from scratch (Ghantous & Christodoulides,

2020).

Brand Recognition: The franchisees beneficiate from the previously secured brand

recognition and reputation developed by the franchisor that bring in more customer trust,

interest, and walk-in.

Training and Support: A serious characteristic of franchising is that franchisors give

you a wide range of training, support, and expert advice that covers the field of operations,

marketing, and financial management. The franchisor in this regard provides support to

reduce the stress of the franchisee and increase the opportunity for success.

Economies of Scale: Franchising has an advantage of scaling up purchasing,

marketing and advertising by franchisees. The economy of scale is a concept whereby

franchisees within the network can order from their main resource center at a lower unit cost

or negotiate good terms with suppliers (Khan, 2021).

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Access to Financing: Institutional financial entities such as commercial banks and

financial institutions may view the franchisees as lower risks to lend the money while

independent entrepreneurs might struggle to obtain the financing. Coming from the proven

background and supported by franchising then, this is why lenders often provide franchisees

the extension of credit.

Flexibility and Autonomy: Although franchisees are obligated to comply with the

franchisor’s operating standards and guidelines, they still maintain some level of freedom in

the latter portions, including modifying the business to suit the needs of the local customers.

Marketing and Advertising Support: A franchise generally undertakes marketing

investments in the form of national or regional adverts and campaigns to promote the brand

and augment its patronage (Khan, 2021). Franchisees get the advantage of the joint efforts of

these processes by means of the fact that the brand prestige is raised and customer base is

also increased.

Risk Mitigation: With franchising, entrepreneurs enjoy a lesser risk of failure

compared to independent entrepreneurship because franchisees are operating within a tested

modal which is already recognized and where systems of support are present.

iii) Who is a franchisor?

A franchisor is a person or a corporation that gives the authority to the entrepreneurs

with whom they have a business contract to operate under a brand that the franchisor

provides and under the model of operation that the franchisor uses. This individual or group

of individuals is known as franchisees. The franchisor being the holder of the brand's overall

business idea, trademarks and intellectual property, gets to license these assets to the

franchisees against an initial franchise fee, a royalty payment and in obedience to certain of
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operational standards and requirements (Jeremiah et al., 2021). The status of the franchisor is

two-fold with the duties assigned covering all aspects of the franchising cycle as follows;

Developing the Business Concept: The franchisor is the one that is tasked with the

development and iteration of the business concept, which consist of the product or service

offered, branding, the marketing strategies used, and the operational standards.

Recruiting and Selecting Franchisees: The franchisor is responsible for finding

suitable franchising candidates who can demonstrate their skills, previous experiences, and

financial assets to take up the role and run a successful franchise location. This requires

attention to all the details including more thorough due diligence and choosing candidates

against the predetermined criteria (Emerson, 2022).

Providing Training and Support: The franchisor has a robust training regime and

consistent support mechanism in place to make sure that the franchisees are backed with all

the essential knowledge and information they need to run their business in an efficient

manner. That may, in turn, be represented by an initial training at the franchisor’s

headquarters, support during the opening phase, and continuous cooperation with reference to

operations, marketing, and financial management.

Developing Marketing and Advertising Strategies: The franchisor can cause

national or regional promotion of the brand and the demand by developing the marketing and

advertising campaigns. This can be made through television advertising, print advertising,

engaging in digital marketing, and organizing promotional events among other things.

Normally, the merchants' contribution is made in the form of funds for marketing which is

used to finance these activities.

Maintaining Brand Standards: The franchisor sets and maintains standardizations

and procedures that must be followed by franchisees so that the franchise units do not differ
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in brand outlook, service quality, product quality and operational deployments. So, this will

guard the image of the brand and its reputation and this will make sure customer with

uniform experience (Teixeira & Chan, 2022).

Monitoring Performance and Compliance: The franchisor evaluates and control

franchisees' efficiency ensuring the operation in compliance with the franchise agreement,

operational standards, and legal requirements. The franchisee is autonomous to run the

business but always bound by contractual agreement. There is a high probability of this

meaning an inspection of the results why letting the employees know about the good or bad

sides of the performance, and then solving the problem when it occurs.
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