Prakticum Report

UNIVERSITI UTARA MALAYSIA BERJAYA ROASTER (M) SND BHD
CHAPTER 1:
- INTRODUCTION -
1.1 ORGANIZATION PROFILE
Kenny Rogers Roasters (KRR) is a leading international wood-fire roasted chicken
chain in the world. In August 1993 Kenny Rogers Roasters signed a multi-million
dollar venture agreement with the Berjaya Group Berhad to develop the chain.
Beginning operations in April 1994 in the Asia Pacific Region, Kenny Rogers
Roasters has grown to more than 80 stores in 6 countries namely Malaysia,
Singapore, Indonesia, Philippines, Brunei and China. Kenny Rogers Roasters also
has development agreements for the Middle East, which include Egypt, Saudi Arabia,
Cyprus and Jordan. Berjaya Roasters (M) Sdn Bhd, a wholly owned subsidiary of
Berjaya Group Berhad was established in Malaysia in 1993. The company is
principally engaged in the development and operation of the "Kenny Rogers
Roasters" chain of restaurants in Malaysia.
1.2 VISION
KRR’s vision is “To provide Total Customer Satisfaction (TGS) beyond comparison,
by doing the right things, in the right way, for the right reasons, by all the members of
the Kenny Rogers Roasters team” (www.kennyrogers.com.my).
1.3 MISSION
KRR’s mission is “To establish KRR as the leading and preferred mid-casual
rotisserie chicken restaurants in Malaysia without compromising our principles and
values” (www.kennyrogers.com.my).
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1.4 OBJECTIVES
KRR has their own guiding principles to support them to achieve their vision. The
guidelines are to provide a great work environment and treat each other with respect
and dignity. Second, is to apply the highest standards of excellence from purchasing,
preparation to delivery of products. Offering affordable, fresh, wholesome and
nutritional food and provide enthusiastic hospitality in a pleasant ambience. Last but
not least, recognizing that profitably is essential to KRR future success.
1.5 PHILOSOPHY AND CORPORATE CULTURE
KRR holds the philosophy and practice a corporate culture to ensure their guests to
always enjoy the best in term of food variety and quality, restaurant ambience, menu
price and excellent service by their people or team member.
Beside that, they also five core values to ensure continue success in food industry.
First is teamwork towards winning and success. Second, passion in everything we
do. Third, integrity in everything we do. Fourth, embrace empathy. Finally yet
importantly, is to have fun.
1.6 CORPORATE BUILDING
KRR follows the exact structure, colour, tools, and method of making products that
has determined by the KRR management. In Malaysia, all KRR staffs must wear
black outfit and wear a red colour apron.
1.7 ORGANIZATION TEAM
Refer appendix (1)
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1.8 CORPORATE STRUCTURE
I practise my industrial training at Kenny Roger Roaster at ground floor, KLCC
convention centre, Kuala Lumpur. It situated strategically beside KLCC Aquaria.
Mostly the people who work at the Convention Centre visit the restaurant. In the
school holidays and public holidays, the public will settle in the restaurant for their
meals. Foreigner also comes in when their visiting the convention area.
1.9 PARENT COMPANY ORGANIZATION POSITION IN BSKL
The Berjaya Group of Companies' history dates back to 1984 when it
Chairman/CEO, Tan Sri Dato' Seri Vincent Tan Chee Yioun, acquired a controlling
stake in Berjaya Industrial Bhd (now known as RekaPacific Bhd). The shareholding
change resulted in a major change in the direction and the dynamic growth of
Berjaya.
In October 1988, following a major restructuring, Berjaya Group Bhd (then known as
Inter-Pacific Industrial Group Bhd) became the holding company of Berjaya
Industrial. Inter-Pacific had been incorporated as Raleigh Bhd in 1967 as a bicycle
manufacturer. It gained official listing in KLSE in 1969. (www.berjaya.com.my)
Through partnerships, acquisitions, JVs and new start-ups, the Group is now a major
Malaysian conglomerate with an annual turnover of over RM7b. Its activities
encompass financial services, local and overseas hotels, resorts and recreation
development, vacation timeshare, property investment and development, consumer
marketing and direct selling/services, gaming and lottery management, restaurants,
industry/technology and healthcare/ education. Operations cover the US, UK, Europe
and Asia. Six of its direct subsidiaries, i.e. Berjaya Land, Berjaya Sports Toto,
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Berjaya Capital, Unza, Dunham-Bush,Cosway and Matrix International (formerly
known as Gold coin (Malaysia) Berhad) are also listed on KLSE.
Stock Name is BJGROUP. Stock Code is 3395. then, ISIN is MYL3395OO000
BJgroup listed on the Main Board under Sector Trading Services. The listing Date is
on 13/02/69. BJGROUP was incorporated On 31.7.67 as a private limited company
under the name of Raleigh Cycles (Malaysia) Sdn Bhd; converted into a public
company on November 2, 1968. (www.berjaya.com.my)
1.10 SERVICES AND PRODUCTS
Kenny Rogers Roasters operates mid-casual dining restaurants with fire roasted
rotisserie chicken as the main menu item and a variety of hot and cold side dishes;
Kenny’s famous home cooked muffins, vegetable salads, soups desserts and
beverages. To know more about the menu please refers to appendix (2).
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Chapter 2:
- Theory Analysis -
In this second chapter of this industrial report, there were four analyses carried out
namely competitive advantage, SWOT analysis, TOWS matrix and Porters Diamond
Model. The analyses that had carried out for the purpose to provide understanding
about the KRR and its operation environment in more detailed. In this section, i will
explain about the purpose of these analyses, the objectives, the method used to
carry out this analysis and other information about the analyses.
2.1 COMPETITIVE ADVANTAGE
According to the Competitive Advantage model of Porter, a competitive Strategy
takes offensive or defensive action to create a defendable position in an industry, in
order to cope successfully with competitive forces and generate a superior Return on
Investment. According to Michael Porter, the basis of above average performance
within an industry is sustainable competitive advantage.
Another sources mentioned that competitive advantage is a competitive advantage is
an advantage over competitors gained by offering consumers greater value, either by
means of lower prices or by providing greater benefits and service that justifies
higher prices. (www.tutor2u.net)
Competitive analysis is a condition which enables a company to operate in a more
efficient or otherwise higher-quality manner than the companies it competes with,
and which results in benefits accruing to that company. (Wall street journal)
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As mention above, Competitive advantage is something a company does especially
well in comparison to its competitors and that skill gives the company an advantage
in the marketplace. The purpose of this analysis is carried out is to point out KRR
competitive advantage in the market place and how it can be defensive in sustaining
the competitive advantage.
Ismail bin Omar. (2003). The competitive advantage analysis had carried out by
using a competitive advantage model according a resource-based view
emphasizes that a firm utilizes its resources and capabilities to create a
competitive advantage that ultimately results in superior value creation. The
analysis uses the diagram that combines the resource-based and
positioning views to illustrate the concept of competitive advantage.
According to the resource-based view, in order to develop a competitive advantage
the firm must have resources and capabilities that are superior to those of its
competitors. Without this superiority, the competitors simply could replicate what the
firm was doing and any advantage quickly would disappear. Krajewski, L.J.,&
Ritzman, L.P. (2005).
Resources are the firm-specific assets useful for creating a cost or differentiation
advantage and that few competitors can acquire easily. The following are some
examples of such resources Patents and trademarks, proprietary know-how, installed
customer base reputation of the firm and brand equity
Capabilities refer to the firm's ability to utilize its resources effectively. Vignali, C.
(2001) an example of a capability is the ability to bring a product to market faster than
competitors. Such capabilities are embedded in the routines of the organization and
are not easily documented as procedures and thus are difficult for competitors to
replicate.
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The firm's resources and capabilities together form its distinctive competencies.
These competencies enable innovation, efficiency, quality, and customer
responsiveness, all of which can be leveraged to create a cost advantage or a
differentiation advantage.
Competitive advantage is created by using resources and capabilities to achieve
either a lower cost structure or a differentiated product. A firm positions itself in its
industry through its choice of low cost or differentiation. This decision is a central
component of the firm's competitive strategy.
To achieve a competitive advantage, the firm must perform one or more value
creating activities in a way that creates more overall value than do competitors.
Superior value is created through lower costs or superior benefits to the consumer by
differentiation. The competitive advantage for KRR is analyzed by using the
competitive advantage model.
2.2 SWOT ANALYSIS
Scan of the internal and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually can be classified
as strengths (S) or weaknesses (W), and those external to the firm can be classified
as opportunities (O) or threats (T). Such an analysis of the strategic environment is
referred to as a SWOT analysis. (www.12manage.com)
The SWOT analysis provides information that is helpful in matching the firm's
resources and capabilities to the competitive environment in which it operates. As
such, it is instrumental in strategy formulation and selection
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A SWOT analysis is a tool, used in management and strategy formulation. It can help
to identify the Strengths, Weaknesses, Opportunities and Threats of a particular
company. Strengths and weaknesses are internal factors that create value or
destroy value. They can include assets, skills, or resources that a company has at its
disposal, compared to its competitors. They can be measured using internal
assessments or external benchmarking. While Opportunities and threats are external
factors that create value or destroy value. A company cannot control them. But they
emerge from either the competitive dynamics of the industry/market or from
demographic, economic, political, technical, social, legal or cultural factors
Any organization must try to create a fit with its external environment. The SWOT
diagram is a very good tool for analyzing the (internal) strengths and weaknesses of
a corporation and the (external) opportunities and threats. However, this analysis is
just the first step. To really create the fit with the external environment is often the
most difficult work.
A SWOT analysis carried out for KRR for the purpose to reveal its own strengths and
weaknesses, and the opportunities and threats it faces from the environment.
Although there are many strength, weakness, threat and opportunity factor for KRR,
in this analysis only the most prior factors taken into account. This SWOT Analysis is
conducted based on the KRR at KLCC and also Berjaya Roaster management.
2.3 TOWS MATRIX
A TOWS matrix is a tool to combine the internal factors with the external factors. A
firm should not necessarily pursue the more lucrative opportunities. Rather, it
may have a better chance at developing a competitive advantage by
identifying a fit between the firm's strengths and upcoming opportunities. In
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some cases, the firm can overcome a weakness in order to prepare itself to
pursue a compelling opportunity.
To develop strategies that take into account the SWOT profile, a matrix of these
factors can be constructed. Often in reality the two columns of the SWOT diagram
are pointing in opposite directions. Strategists must still deal with the paradox of
creating alignment. This can be done via Outside-in strategy formulation (market-
driven strategy) or Inside-out strategy formulation (resource-driven).
The TOWS matrix is carried out to develop possible and logical strategies by
combining the factors in the SWOT analysis. The strategies can be formulated by
combining the S-O strategies to pursue opportunities that are a good fit to the
company's strengths. Then formulate W-O strategies to overcome weaknesses to
pursue opportunities. Formulate S-T strategies to identify ways that the firm can use
its strengths to reduce its vulnerability to external threats. Lastly, formulate W-T
strategies establish a defensive plan to prevent the firm's weaknesses from making it
highly susceptible to external threats.
This analysis is carried out for KRR to find its offensive move by making the most its
strengths and opportunities. Then, to find it defensive moves by observing its
competition closely. Beside that, to understand the necessary adjustment it has to
make using it strengths and threats. Last but not least, to form its survival move by
taking the possible turn around. This strategy formulate by watching closely at KRR
threats and weakness.
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2.4 PORTER’S DIAMOND MODEL
The Five Forces model of Porter is an Outside-in business unit strategy tool that is
used to make an analysis of the attractiveness (value) of an industry structure.
Michael Porter provided a framework that models an industry as being influenced by
five forces. The strategic business manager seeking to develop an edge over rival
firms can use this model to better understand the industry context in which the firm
operates.
This analysis is different than the industry analysis even though both use to analyze
the industry. This porter’s model helps to identify fundamental competitive forces in
the specific restaurant industry that KRR operates.
The Competitive Forces analysis is made by the identification of 5 fundamental
competitive forces which are Entry of competitors to know how easy or difficult is it
for new entrants to start competing, which barriers do exist. Then identify the Threat
of substitutes to know how easily can KRR product or service be substituted,
especially made cheaper. Further more to measure the bargaining power of buyers
to know how strong is the position of buyers and can they work together in ordering
large volumes. Then to measure the bargaining power of suppliers to understand
how strong is the position of sellers and potential suppliers exist. Lastly, to measure
the rivalry among the existing players and to understand whether there is a strong
competition between the existing players or is one player very dominant or are all
equal in strength and size. Dana, L., & Vignali, C. (1998). With using this model, KRR
can know its potential competitors, its stable status in the restaurant industry in
depth.
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Chapter 3:
- Findings And Discussion -
3.1 COMPETITIVE ADVANTAGE
Resources
Cost Advantage
Distinctive or Value
Competencies Differentiation Creation
Advantage
Capabilities
Diagram 1: competitive advantage model
The competitive advantage of KRR is analyzes by using the diagram 1 (competitive
advantage model). As discussed in Chapter 2, competitive analysis had divided into
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four different aspects to analyze KRR competitive advantage. KRR is very concern
in generating a superior return on investment.
3.1.1 Resources
KRR has specific assets and resources and capabilities that are superior to those
of its competitors. Resources are the KRR specific assets useful for creating a
differentiation advantage and that few competitors can acquire easily. The
resources which are contributing to KRR competitive advantage are its trademark.
Its trademarks are it food products. KRR has its own secret recipe which uses its
own secret herbs, spices, citrus and marinates chicken in its own juicy marinate
method. In preparing each food product KRR uses its unique method of cooking
and its ingredients that is had to know by others. KRR food products have its own
taste and it is made to provide healthy food consumption for the guests.
Further more, KRR has a good reputation among the guests. as a mid-casual
rotisserie chicken restaurant KRR has gain a special place in its guests heart as a
third place for them beside home and work place. A lot of people likes to dine-in in
KRR because they have trust in KRR food that are fresh always and KRR provide a
clean and healthy environment to relax peacefully while having their meals. Kenny
Rogers Roasters has been awarded three times in a row (1996, 1997 and 1998)
the America’s Choice Award Winner for the Best Chicken Chain by Restaurants &
Institutions Magazine. Kenny Rogers Roasters was also awarded the Master
Franchisee of the year 2000/2001 by Malaysian Franchise Association.
(www.berjaya.com.my).These resources had differentiated KRR from its
competitors.
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3.1.2 Capabilities
Beside that, KRR has it own capabilities to give a competitive advantage from its
competitors. KRR products are well known for its healthy way of cooking and its
method of preparing its products with less fat, less salt and less calories. It’s a
unique and most important aspect of KRR to gain its own loyal guests. Nowadays
people are more concern in consuming healthy food and price of the product doest
really taken into account.
Furthermore, KRR is giving a priority in making quality products. KRR is the only
restaurants that are running a quality inspection from time to time to ensure that the
guests always receive the best and quality products. KRR always give An Attractive
Price and a Value Relationship where it offers the quality of a full service meal at
the prices and convenience available at quick-service restaurants. In short, value
for money.
In addition to that, KRR create consumer awareness where it strives to set
Roasters into the minds of consumers as ‘the place for Rotisserie chicken’ through
marketing efforts that emphasize on the various attributes of the Roasters menu
and restaurant design, including the association of Kenny Rogers. As mentioned
above KRR is give the full effort in making KRR as guests conscious environment
roasters restaurants are designed and managed, to provide the level of service,
comfort and ambience of a full service restaurant with the convenience of a quick
service restaurant. The restaurant design showcases a brick-enclosed, wood-fire
rotisserie, memorabilia and photographs together with sounds of lovely music which
are designed to create a warm, comfortable and lively atmosphere. In addition, the
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training programs encourage its employees and hostess to interact with guests and
provide a high level of friendly customer service.
3.1.3 Differentiation advantage
The resources and KRR capableness to use the resources effectively has given a
KRR a defendable position in the restaurant industry. Even though, food is
something we can substitute easily, but KRR has created its uniqueness when
people think about having meal foe a special occasions or looking for a healthy and
comfortable environment KRR is the place that they are looking for.
3.1.4 Value creation
Since KRR has its own uniqueness the money is not the matter for the guests that
dine-in at KRR. KRR has created its own value creation that is quite difficult for any
other competitors to take it place. It’s clear mission and vision and it professional
management has create the unique value for KRR.
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3.2 SWOT ANALYSIS
STRENGTHS WEAKNESSES
1. Strategic location 1. Still using filing system

2. Appropriate training provided and 2. Fail to curb the restaurant operation in
Ongoing development. the busy situations
3. Quality processes and procedures 3. Less innovative
(Hazard analysis critical control 4. Staffs not provided with proper
point) uniforms and name tag or
4. Delicious food and healthy food. Identifications.
5. Proper management. 5. Less commitment from the staffs
6. Clear menu card. 6. Not providing any additional benefits
for the guests
7. Less effective feedback method.
OPPORTUNITIES THREATS
1. More business meetings and 1. Delay of suppliers.

function To be held in the convention 2. Potential competitors.
area. 3. Competitor has a new, innovative
2. Aquaria in KLCC. substitute product or service.
3. Moving into new attractive market 4. Regulations to use wood in preparing
Segments. the foods.
4. Change of consumer 5. More cheaper products.
behaviour.
5. More fresh graduates
looking for jobs.
Table 1: SWOT analysis for KRR
3.2.1 Strengths
S1: Strategic location
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Figure 1: Kuala Lumpur Convention Centre
KRR Kuala Lumpur Convention Centre is located very strategically at one of the most
popular place in Malaysia. Firstly, it is at the centre of the Kuala Lumpur town, and it
is situated at the world tallest tower namely Kuala Lumpur City Centre (KLCC). This
KLCC is the most favourite place for the tourists who came to Malaysia and for the
local people of Malaysia.
Secondly, in the Twin Tower the KRR is placed at the Convention Centre’s food
court. The restaurant is often occupied by the people working in the convention
centre offices and also by the people who comes to attend the events arranged in the
convention centre.
Beside that, in the weekdays and public holidays the KRR restaurant will be filled
with schoolchildren and parents, teenagers and friends who came to enjoy their meal
after visiting the Aquaria, which situated beside the restaurant. It also a plus point for
the restaurant.
S2: Complete training provided
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KRR is very concern in giving 100 percent knowledge about their vision, mission,
objectives, products and their current activities to their new staffs to ensure that their
staffs is equipped with tools and resources , to ensure that the guests receive a
quality product, great service and leave enthusiastically. To ensure their staffs
receives the proper tools and resources, KRR provide complete training workshop
and workbook for those staffs that joins in the KRR family. The staffs who newly join
KRR must attend first two classes in within a week from the day they join KRR. The
staffs provided with ‘core program Learning Journey Workbook’
The workbook must be finished with 100 hours of employment. The workbook
contains nine modules namely ‘first impression, KRR experience, communicating
products, legendary service, service deployment, server, front of the house station,
register, back of the house station. After this session, KRR staffs will be able to
perform more professionally.
S3: Quality processes and procedures (Hazard analysis critical control point)
KRR practices to give best quality product and service to its guests in order to give a
legendary service to them. It believes that legendary service could tie up a promising
bond and gain the guests loyalty towards KRR. Since the KRR daily operation is
about giving service to guests, it tries to give its best in doing so.
KRR ensures that its guests always receive legendary service and to differentiate
them with other fast food restaurant, KRR follows the HACCP guidelines and
procedures in handling its daily operation. This had made KRR a recognizable
restaurant for cleanliness and healthy and safe environment to dine in.
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To monitoring the quality KRR food products, the quality assurance teams are
responsible in a continuous round of visits, inspections and audits, announced and
unannounced, to all production facilities, distribution centres and restaurants. A very
tight specifications has been done to every supplier to ensure that the detail of exact
quantity and quality of raw ingredients and the dimensions of the finished product.
KRR also regularly take samples of stock at distribution centres to ensure that they
conform to specifications. The quality controls continue when the food arrives at
restaurants, no delivery is accepted until a series of quality and safety checks is
completed. A comprehensive training in food safety, hygiene and food preparation
procedures is designed to all of the restaurant staffs. This is a global practice and is
one of the distinguishing features of KRR as a fast-food restaurant.
S4: Delicious and healthy food
Beside that, KRR is well known for its delicious and healthy roasted chicken and its
twelve hot and cold side-dishes and it KRR mouth-watering homemade muffins. All
KRR products is contains ‘less fat, less calories and less salt’. This had given a
significant competitive advantage from its competitors. The fat is removed naturally
by roasting the chicken inside rotisserie for forty-five minutes to let the fats to melt
away and giving the guests tasty and healthy chicken meal.
Besides that, KRR make sure each time the guests are consuming the fresh products
and it practices the ‘first in, first out ‘concept. With this, the guests always enjoy a
healthy and delicious food. At KRR restaurant any product that exceeded its life
period will be disposed immediately even the cost is high.
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S5: Proper management team
KRR management is recognized as one of the best management in the subsidiary of
Berjaya Group. The management always aware of each restaurants activity progress
and always visits the restaurant. The management gives moral support and open to
listen to any problems of the KRR team members at anytime. The management team
always focuses on creating a very effective two way communication system since
their main required skill is connecting oneself with the guests. For example, KRR
KLCC has been visited more than 5 times by the Area manger, Deputy General
Manager in the period of my industrial training there for 10 weeks.
S6: Clear menu card
I should admit that KRR has a very clear complete menu card. It is designed with
separating into four parts where it is divided according with its type of food namely,
lite and easy selections, great meals, desserts and beverages. The menu card has
hard covers and eliminated pages to make sure it’s not easy to get dirty or torn. The
menu card contains each items mane, with its price and a picture of the product. This
is very much help for those who are new to the KRR. The menu card can be said
people friendly.
3.2.2 Weaknesses
W1: Still using filing system
While all the organization moving beyond the expending modern technology arena,
KRR is still using manual filling system in dealing with its daily activities in the
restaurant. The files had taken a big space in the small office room and it is delaying
a task to find the correct document. The files such as daily profit or loss statement,
ordering files, staffs attendance fail, stock files is not only delaying daily activities but
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also give the opportunity for human errors that affect the restaurant performance
overall.
W2: The management fails to curb the restaurant operation in the busy
situations
The restaurant management fail to handle the increase of guests during ‘peak hours’
on function days. The restaurant management has less communication with the
convention area management people about the functions held: to know the details of
the events arranged at the convention area and the number of people that would
attend the functions. This often lead to unexpected increase number of guests at
KRR restaurant and make the situation worst with unprepared products, tools and
shortage of staffs and it create a tensed situation for all the team members.
W3: Less innovative and less choice of food
From the day KRR started its operation in Malaysia until now, it has obviously
reduced its number of product whereas it should have come up with new products. It
has loses its competitive advantage in competing with it’s competitor who undertake
to provide new and different product to its customers. For instance, Nando’s had
introduced almost more than 10 different products for the taste of its customer. This
has shown that KRR is using the profit strategy under stability strategy where; KRR is
just concentrating at the company’s current problems and being passive.
W4: Staffs not provided with proper uniforms and name tag or identifications.
KRR does not have a standardize uniform that show identity of a staffs who work at
KRR restaurant. Staffs are also not providing with nametag or identification card to
identify them as KRR staffs. Sometimes guests who wear all black are mistaken for
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the KRR staffs. The staffs do not carry the image of KRR staffs as Starbuck staffs do
even though both the companies are under the same management.
W5: Not providing any additional benefit or packages to the guests demands
KRR fail to meet most of guests’ demands who wish to dine in as a big family around
20-25 people for a specific functions. They often ask for a discount or any pacific
packages for families. One of their demands is for the drinks to provide in a jug for
the family. Beside that, any toys for the children and so on. The failure of KRR to the
requests, a wrong perception occurs within the guests that KRR is not a family
oriented restaurant. This had led KRR to losing its promising guests.
W6: Less effective feedback method
KRR practices to get themselves closely to the guests. In their serving concept, they
conduct a ‘table visit’ part to visit the entire guests at the table and ask their opinion
about their experience at KRR. Even though it’s a friendly way to ask about their
comments but it is not the effective way to gain the guests feedback. The ‘table visit’
method not only consumes a lot of time and the feedback that the staffs gain is not
appropriate.
W7: Less commitment from the staffs
Common points of view within publics are KRR is fast food restaurant and it is
suitable just to work as part-time or temporary only. There so many school leavers,
students who are waiting for education results and waiting for Universities intake and
so on are finding work at KRR. Due to this situation, there are not many staffs that
can rely on. Since the staffs are working part-time and based on hours, they intend to
come in for work as they wish and they show less commitment in their work. This not
only creates difficulties to KRR but also affect KRR reputation.
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3.2.3 Opportunities
O1: More business meetings and function are held in the convention area
Convention area in KLCC designed to held function and meetings. It has two big
halls that has place for more than 25000 people and ballroom, and meeting room. It
has recognized as one of the best place to hold up any official event because it is
easy access it has a big food court and the convention management prepare food
upon requests. Last year, the biggest event that held in the convention area is the
‘PC Fair ‘and it has gave KRR a huge increase in its profit. Recently, events like
Pikom 06’, REX06, companies annual meetings and so on had successfully held in
KLCC convention centre and gave a hit in KRR profits. Furthermore, the convention
area at KLCC expected to have more and more business functions and meetings and
other events in the future. This will automatically penetrate more guests for KRR at
KLCC restaurant.
O2: Aquaria in KLCC
Figure 2: Aquaria KLCC
Aquaria (as shown in Figure 2) are KRR restaurant’s backbone at convention area.
Most of people realized there is KRR restaurant at KLCC because of Aquaria.
Aquaria often visited by foreigners, local people, teenagers and group of tourist. KRR
is getting more guests if Aquaria come up with any special promotion or events.
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Aquaria eventually come up with new events and bring in new and rare water life
almost every month. Recently they had announced a special promotion price during
the school holiday and it has attracted mote people from local and outstation. This
kind of events will ensure KRR profit maintains and gets higher.
O3: Moving into new attractive market segments
KRR main motive is to attract mid age people but it is now became more like a coffee
shop for the business people, family gathering place for families and kids place for
kids. KRR has a great opportunity to attract all aged people by giving them more
suitable meals for them. KRR has the capability to entertain more attractive and
profitable market segments.
O4: Change of consumer behaviour
The people are becoming more health conscious and health consciousness becomes
major topic of discussion among customers these days (Luis, R, 1995). People are
very particular in consuming healthy and full nutrition food. Therefore, they are more
knowledgeable and aware of the suitable food for their healthy life. KRR is well
known for it tasty and healthy products. The methods for making the products are
very clean and KRR food service is certified by the health ministry of Malaysia.
O5: More fresh graduates looking for jobs
There are a lot of fresh graduates are looking for jobs that can promise them
continues growth in their carrier. More challenged and graduates with good
communication skills are looking for job at this tough moments where there a limited
jobs available nowadays. There are a lot of graduates are willing to work in the fast
food industry and most of them realize that there a carrier growth opportunity at KRR.
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3.2.4 Threats
T1: Delay of suppliers
KRR faces threats from it suppliers. KRR ordering its raw products from almost 10
different suppliers namely English Hotbread Sdn. Bhd for muffins, Ven Trading for
vegetables and fruits, PAP Marketing for the gravy, and F&N for the drinks.
Sometimes the supplier cannot provide more products when ordered in a short
notice. Sometimes, the amount of guests will exceed than the anticipated and as the
result, the service breakdown. Sometimes, product sent to different outlet out wrongly
sent or incorrect amount of products. These affect KRR restaurant daily operation
and service to guests.
T2: The occurrence of Potential competitors
Since convention centre at KLCC is becoming a ‘hotspot’ for foreigners and visitor it
is also becoming a potential business area for food-oriented business. The food court
at convention centre already occupied with variety of food and beverage stalls. There
are rumours that a ‘chicken rice’ restaurant will be opened soon at the convention
centre right in front of KRR restaurant. This could result a tough fight between KRR
and the chicken rice restaurant in the future.
T3: Competitor has a new, innovative substitute product or service
Possible threat for KRR is the price, compare to their competitor around it. Since the
KRR KLCC is situated in the food court, there are more foods and beverages with the
image of local sold in the stalls at the food court. There are all kinds of food sold
there, such as mixed rice, lamb chop, chicken rice and so on. There also provide
partially table service where the customers only have to place their orders and the
food will be sent to them when its ready and the staffs will clear the plates after the
guests’ meals.
24
T4: Regulations in using wood in preparing the food.
Besides that, the basic image of KRR, which is a roasted chicken using wood, is not
in practice anymore except in one or two outlets of KRR. These changes are due to
the regulations of the government and to follow the environmental friendly policies.
So, KRR has lost its own specialty in preparing their roasted chicken.
T5: Cheaper food available
KRR is considered as a mid-casual restaurant and it applies 5% government tax and
10% service charge. The prices of the product are much higher than other
competitors at the KLCC Convention area food court. Normally, most of the people
who come to the convention area in a big group or big-membered families prefer to
eat at the food court since the price of the foods are cheaper.
25
3.3 TOWS MATRIX
STRENGTHS WEAKNESSES
1. Strategic location 1. Still using filing system

Internal 2. Appropriate training 2. Fail to curb the
Factors provided and ongoing restaurant operation in
Development. the busy situations
3. Quality processes and 3. Less innovative
procedures (Hazard 4. Staffs not provided with
analysis critical control proper uniforms and
point) Name tag or
4. Delicious food and identifications.
healthy food . 5. Less commitment from
5. Proper management the staffs
External 6. Clear menu card. 6. Not providing any
additional benefits for
Factors
the guests
7. Less effective
feedback
method
OPPORTUNITIES SO: WO:
1. More business 1. (S1, S5,S4, O1, O2) 1. (W2.W5,O5)

meetings and function
to be held in the
Convention area.
2. Aquaria in KLCC 2. (S3,S4, O3,O4) 2. (W6, W3, O1,O2)
3. Moving into new
attractive market
segments
4. Change of consumer
behaviour
5. More fresh graduates
looking for jobs
THREATS
ST: WT:
1. Delay of suppliers 1. (S2,S3, T2,T3) 1. (W1, W7, T1, T5)
2. Potential competitors.
3. Competitor has a new,
innovative substitute
product or service
4. Regulations to use
wood in preparing the
foods
5. More cheaper
products
Table 2: TOWS Analysis
26
3.3.1 SO Strategies
SO 1: Product Development Strategy
KRR should provide more variety of food products its growing numbers of guests. A
strategic location of KRR KLCC is able penetrate more guests and KRR should serve
them according to their needs and current trend of food consumption. KRR can
prepare light meals for breakfast or evening meals because there are a lot of office
people will have meeting in the convention area and they looking forward to KRR will
have something for them. So, KRR is capable of fulfilling guests’ needs because it
has a situated in very strategic location, has a professional higher management, and
can provide delicious food to the guests.
SO 2:Maintain Distinctive Competencies Strategy
KRR should sustain its quality assurance to differentiate KRR with any other
competitors. KRR should wisely utilize it strength to grab the opportunity it has. The
training that KRR providing is a complete training and prepare themselves to attend
the guests with confident and more knowledgeable about the KRR operation and its
products.
Besides that, KRR should continuously ensure that quality and the taste of their
products are always up to the expected level. The growing awareness among the
public for a healthy life can create a quite huge numbers of loyal guests for KRR.
3.3.2 WO Strategies
WO 1: Human resource strategy management
KRR can overcome the shortage of committed staffs by realizing the opportunity that
lies around it. It should hire more fresh graduates to be the part of the team because
the graduates are able to penetrate some excellent ideas since they are from
different background and well educated. KRR should come with more skill
27
challenging programs and some arrange brainstorming programs to gain a better
feedback from the staffs.
WO 2: Marketing Strategy
Further more, KRR must concentrates on marketing strategies to create awareness
of KRR products and the message should always be in the peoples mind all the time
to make KRR as the ‘third place’ as KRR objective. KRR should advertise its
products in television and news paper to always reminding the people of its delicious
products and to think of KRR when they thinking of enjoying a tasty and healthy food
at a comfortable place.
3.3.3 ST Strategies
ST 1: Cooperative Strategy
KRR can share its knowledge in quality management and proper training method
with other companies in the restaurant industry to gain the latest information in the
food industry, trends of food consumption and the preferences of people. This is
because in the fast moving world, it is difficult to survive if ones not willing to share its
expertise and it might left behind in its industry.
3.3.4 WT Strategies
WT 1: Financial Strategy
To face the threat and to overcome the weakness of KRR it should practices a cost
reduction financial strategy. KRR should try to reduce cost in its purchasing, and
make that products in a restaurant is enough and there is no exceed orders and all
the product that are sold are tally with the daily report of the restaurant. KRR must
28
note all the wastages occur at the restaurant and fine its possible causes to save
cost.
3.4 PORTER’S DIAMOND MODEL
New Entrants
Threat of new
entrants
Bargaining
Bargaining
Power of
Suppliers Industry Power of
Competitors Suppliers
Suppliers Buyers
Intensity of
Rivalry
Threat of
substitutes
Substitutes
Figure 2: Porter’s Diamond Model
3.4.1 Threat of new entrants
KRR is in the food industries: specifically in fast food restaurants industry. Even
tough, KRR is identity itself as a mid-casual chicken restaurant, in people’s eye it fall
29
under fast food restaurant category. Therefore, KRR has to battle up with the existing
restaurants and new upcoming restaurants. KRR foothold in Malaysia by franchising
and nowadays there are a lot of similar restaurants enters Malaysia in the same
method. As analysis the Malaysia Franchising industry, it clear that government of
Malaysia also open arm for these kind business by providing financial support, less
regulations and give guidance to encourage more and more Malaysia to participate in
business. Barney, M.(n.d).
Since restaurant industry is an easy access industry and it has a potential market
growth, KRR faces a serious threat from newly entering restaurants because they are
more advanced in technology and more innovative and bringing up products that is
more familiar with taste of locals. For example, now the Chicken Rice restaurant is
opening its branch almost all over the ‘hotspot’ places. The name of the restaurant is
shows that it is more to localise food products and all easily accept the image of the
restaurant. Beside that, restaurants like Chicken King and more chicken meal
oriented restaurant are popping out everywhere like mushrooms.
3.4.2 Threat of substitutes
KRR restaurant at the Convention Centre is placed at the food court. Eventually there
are many choices of food there for the people who wish to have their meal. Food is
something can be substitute easily according to the preference of a person. Even
though chicken is one of most favourite food item of Malaysian but there are more
choices of chicken there and spaghetti and other food that is price cheaper than KRR
because they do not apply taxes as KRR do. KRR and other food stalls at the
Convention area give a similar taste and satisfaction for those take their meal there.
Therefore, the customers easily substitute the products of KRR with the other food.
30
Beside that, there is no cost in involved for the customers in switching to the
substitute product.
3.4.3 Bargaining Power of Suppliers
Raw materials and other components at KRR are supplied by other parties or
suppliers. Mostly involved suppliers are those supplying raw items like chicken,
vegetables, cooking powders and so on. Well, KRR had established a good
relationship with its suppliers and always maintain a good communication between
them.
When we are about to analyze the bargaining power of suppliers to KRR, we must
take into account that KRR purchase item from various suppliers for different items.
KRR order its marinated chicken from Dinding Poultry snd. Bhd, muffin mixture from
English Hotbread snd bhd, Vegetables from Ven Trading, the Gravy mixture from
PAP marketing and so on. The items that ordered for the operation purpose has a
significant impact on the restaurant daily profits.
The bargaining power of suppliers is differ from a supplier to another. The suppliers
of raw chicken and vegetables and fruits are having more bargaining power because
they are very established company with their own trademark in providing the required
amount and size for the item that is ordered by the buyers.
3.4.4 Bargaining Power of Buyers
The people create demand for KRR are its guests. KRR is in restaurant services
industry and it’s operating with its own concepts, taste of food and targeted guests.
The buyers are more dominant in KRR. The KRR operation based on guests
demands and there are many restaurants providing similar food and beverages to the
31
guests. So, KRR had to obey for the demand for its guests. At KRR they practices
‘Just Say Yes’ philosophy, realizing the power of guests.
The guests can easily find a substitute for KRR products since it’s related with food
and Malaysia is well known for tasty food and beverages. The buyers can easily find
another substitute for their meal. Therefore, KRR must create an unforgettable image
on it’s guests and make KRR must accentuate itself as a distinctive taste as food as
how Malaysian feels about KFC and MC Donald’s and Pizza Hut.
In this food and beverage industry, the buyers are definitely has the bargaining power
since the industry is running to serve them.
3.4.5 Intensity of Rivalry
KRR restaurant at KLCC convention Centre is placed at the food court. At the food
court, there are all kind of foods and beverages. There are foods to the taste of locals
and foreigners. There are western food stall, Thailand food stalls, Indian food stall,
Korean food stall, New Zealand ice- cream stall, and so on. KRR is originated from
United States of America and it remains its foreign identity. Therefore, it is battling
with other stalls build up there. The only different that it provide to guests in term of
services is its structure of it restaurant which is more spacey and it give a table
service. In term of price KRR is known for a highest price for its products among its
competitors at there.
32
CHAPTER 4:
-ADDITIONAL ANALYSIS AND SUMMARY-
4.1 ADDITIONAL ANALYSIS
4.1.1 Industry Analysis
In this part, I had done an industry analysis for franchise Industry in Malaysia.
Industry analysis is a type of business research that focuses on the status of an
industry or an industrial sector (a broad industry classification, like "manufacturing").
A complete industrial analysis usually includes a review of an industry's recent
performance, its current status, and the outlook for the future.
Smith.E , Samuel.M (2004) There are many sources of industry analysis or eg.
investment firms, business and trade periodicals, trade associations, and
government agencies. To conduct a thorough industry analysis, include a variety of
sources.
The industrial analysis that had carried out in this report is about the Franchise
Industry in Malaysia. This analysis include information about the overall franchise
market overview, the government support, financial supports, current market trends,
potential competition between foreign and local competitors, sales prospect, market
access and cultural and regional issues.
The purpose of this analysis is to give a deep understanding about the franchise
industry in Malaysia as it is now recognized as one of the profitable and less risk
33
involved industry. The main objective of this analysis is to give a proper
understanding of the industry to the readers and to guide those who are interested in
involving themselves in the industry later.
4.1.2 Market overview
A&W was the first fast food company that brought the idea of franchising into
Malaysia in 1967. (Layhwa Teh, 2003). However, Franchising were better known and
starts to expand gradually in Malaysia after the year 1992 when government began
promoting the sector. The government's agenda is to increase the number of
"bumiputra" (ethnic Malays and other indigenous groups) entrepreneurs in the
country through franchising by offering them significant financial and training
support. The government efforts had been effective, as bumiputras now represents at
least 40% of franchise owners in Malaysia, up from less than 10% ten years ago.
(source). Interestingly, more non-bumiputras are entering the industry for they are
recognizing franchising as an effective strategy for regional expansion. Furthermore,
with increasing competition regionally, local manufacturers are looking towards
franchising as a way to diversify their operations.
4.1.2.1 Strong Government support
Under the 9th Malaysian Plan (9MP), the country's economic development plan for
2006-2010, franchising has been identified as one of the growth areas for the
structural change and upgrading of the distributive trade industry. The government
allocated US$26.3 million (RM100 million) to the Ministry of Entrepreneur
Development to promote, market, train, and finance the Franchise Development
Program (FDP) with the objective of establishing 1,000 franchisees and 50 new
franchisors (and hopefully, building 1,000 entrepreneurs) over the five-year period.
( Forbes, 1999 )
34
Although FDP encourages the development of home-grown franchises, foreign
franchises that contribute capital, technology transfer, expertise, entrepreneurial
development, and human resource development are most welcome. The
government recognizes that it has to learn from the developed countries since
franchising is relatively new in Malaysia.
The Malaysian government has allocated funds to various federal agencies,
including Perbadanan Nasional Berhad (PNS) and Permodalan Usahawan Nasional
Berhad (PUNB), to develop and enhance local franchises, acquire master franchises,
master licenses and encourage sub-franchises among the bumiputras.
4.1.2.2 Financial Support
Many financial assistance programs and facilities created under the Ministry of
Entrepreneur Development to promote franchising among bumiputra middle class
entrepreneurs. Although preference is given to bumiputras, others are also allowed to
apply.
The Programs that includes are such as Credit Guarantee Corporation where it
guarantees up to 80%-100% of commercial loans obtained by franchise companies.
Beside that The Franchise Development Assistance Scheme provide financial
assistance up to a maximum of US$26,316 (RM100,000) or 90% of the total
development cost, whichever is lower. Further more Permodalan Usahawan Nasional
Berhad (PUNB) give out loans in return for equity holding. (Layhwa Teh, 2003).
Further more, foreign franchisors can benefit from the above programs if the local
partner or franchisee is incorporated in Malaysia.
35
4.1.2.3 Market Trends
There are over 2,500 franchising outlets in Malaysia in sectors ranging from food and
beverage to automotive related sector (car sales, service centres, tire services),
clothes and fashion, computer & internet services, beauty and health, hotels and
tourism agencies, cleaning services, pharmacy, souvenirs, jewellery, printing, photo-
shops, etc. (refer to appendix 3) As of September 2005, 448 franchises have applied
for registration with Registrar of Franchise (ROF). Of these, 339 have been
approved. Approximately 40% of the approved applications are for foreign franchises,
which the U.S. dominates.
Asmah Zaidani. (2000) mentions that Franchising, which contributes over 12% of the
country's GDP, has been growing at a rate of 10% over the past few years. It
represents approximately 4% of the retail outlets in Malaysia and accounts for 5% of
total retail sales. Comparatively, the local industry has a high potential for growth
since the franchising industry in the U.S. contributes more than 40% to its total retail
sales. Although the market was impacted by the Asian financial crisis in 1997, it is
recovering. It is expected to continue to grow due to the strong support of the
government.
Fast foods dominate the franchising sector with estimated annual sales exceeding
$342 million (RM1.3 billion). Asmah Zaidani. (2000). With rising disposable income,
growing appetite for fast food (especially among Western-influenced young adults),
the market outlook is good. As these young adults raise families of their own, they
are likely to take their kids to fast food eateries, thus building a new generation of fast
food lovers.
36
Furthermore, the local industry is currently going through an interesting development
phase where it is not only growing in terms of volume but also in terms of product
variety. Industry players are now more adventurous to explore non-food based
franchise business. An example is PNS' purchase of the Dwyer group franchise.
Halim Hilman Abdullah. (2005).
4.1.3 Competition
4.1.3.1 Foreign Franchises
The U.S. accounts for over 70% of foreign franchise sales in Malaysia, followed by
the U.K., Taiwan, Singapore, and Australia. U.S. franchises dominate the fast food
and restaurant industry and include the following: Kentucky Fried Chicken (KFC),
McDonalds, A & W, Burger King, Starbucks, Seattle's Best Coffee, Dunkin Donuts,
Pizza Hut, Domino Pizza, Shakeys Pizza, Kenny Rogers Roasters, Long John
Silvers, Dairy Queen, TGIF, Chilis, Hard Rock Cafe, Planet Hollywood, Baskin
Robbins, Haagen Dazs, Swensons, Famous Amos, Auntie Annes, Outback Steak
House.
Due to the high capital investment required for a foreign franchise, owners of foreign
franchises tend to be Malaysian conglomerates and wealthy investors. As more and
more manufacturing heads towards China and other neighbouring low-cost labour
markets, Malaysian manufacturers are beginning to look towards services and
franchising as a way to diversify their operations, often in very different sectors.
Halim Hilman Abdullah. (2005).
Large local conglomerates such as KFC Holdings Bhd, Berjaya Group, KUB
Holdings, TT Resources Bhd and HPL Holdings Ltd (based in Singapore) are active
players in Malaysia’s franchising market, each holding a number of foreign and local
37
franchises. Most of these conglomerates use franchising as a strategy for regional
expansion and, therefore, also hold master franchisee/licensee rights to a number of
other countries in the region.
KFC, which entered the Malaysian market in 1973, is the most successful franchise
and dominates the market with 300 outlets and 55% market share. KFC Holdings
Bhd, a publicly-listed company in the Kuala Lumpur Stock Exchange (KLSE), also
holds the franchise for Pizza Hut and Seattle's Best Coffee. In total, KFC Holdings
Bhd controls over 60% of the fast food market in Malaysia.
Berjaya Group, a major conglomerate listed on KLSE, ventured into franchising in
1984 with the establishment of 7-Eleven convenience stores in Malaysia. They have
since acquired the rights to Kenny Rogers Roasters, Roadhouse Grill, and Starbucks
Coffee, making them one of the major players in the industry. http://
(www.berjaya.com.my)
4.1.3.2 Local Franchises
Since there is no significant presence of other foreign franchises in Malaysia, the
U.S. franchises are mainly competing among themselves and with a few successful
local franchises. Home-grown food outlets such as San Francisco Coffee, San
Francisco Steakhouse, Chinoz and Mississippi Slims have been successful in
marketing themselves as western food outlets which is in direct competition with the
U.S. food franchises.
The largest local franchise is Edaran Otomobil Nasional (EON) which was
established in 1986 to distribute Malaysia's national car, "Proton". EON has over 250
38
franchised outlets with annual sales of $1 billion, making it the country's largest
franchise.
Although the Malaysian government is encouraging the development of home-grown
franchises through various programs, it will take time to develop them to a level
where they can compete in the global market. A number of home-grown franchise
schemes have started penetrating foreign markets. These include Marrybrown Fried
Chicken (fast food), England Optical (optical shop), Royal Selangor (crafts/gifts),
Nelson's (fast food) and Bonia (shoes & bags). Marrybrown Fried Chicken which
was founded in 1981 has over 100 outlets in Malaysia, Singapore, Brunei, China,
India and the United Arab Emirates.
Since home-grown franchising is still in its infancy stage, the government recognizes
the benefits of learning from foreign franchises with proven business models and
track records. Therefore, it encourages leading foreign franchisors to set up
operations in Malaysia.
4.1.4 Sales Prospects
There are many opportunities for U.S. franchisors in the Malaysian market, especially
for those willing to structure their franchising fees reasonably and emphasize training.
Franchising has excellent growth potential here due to a few strong reasons. Which
are the government's strong promotion and support for the franchising industry and
popularity of U.S. franchises;
Best prospects identified for the franchising sector in Malaysia include casual fast-
food outlets and restaurants , education and training products/programs for English,
life sciences, leadership, child development, and other adult training programs,
39
services, such as pharmacy, healthcare, nursing, senior care, printing, cleaning,
plumbing, car servicing & maintenance, Information technology, such as computer
services and Gift and souvenir shops.
4.1.5 Market Access
4.1.5.1 Registration With Registrar Of Franchise
According to Franchise Act 1998, all franchisors that are selling their franchises in
Malaysia are required to register with the Registrar of Franchise (ROF) which is
under the Ministry of Entrepreneur Development. Exemptions are granted to
franchises that have been in operation in Malaysia prior to 1998. Therefore, U.S.
franchisors that are selling their franchises in Malaysia will have to register with ROF
first. The franchisors have to submit letter of Intent, their company profile, a sample
of franchise agreement and copy of latest audited accounts
Officially, it takes one month to get an approval from ROF but normally it takes at
least three months. It is usually easier for foreign franchises to get approval for
registration with ROF compared to local franchises. However, there are incidences
in which applications from foreign franchises had been rejected. When an
application has been rejected, the franchisors can appeal.
4.1.6 Cultural and Religious Issues
Franchises operating in Malaysia must adhere to Malaysian commercial and contract
laws, procedures, and local norms. For instance, pork must not be served at fast
food outlets and chicken, lamb, and beef must be slaughtered according to Islamic
rites. Although an existing handful of non-fast food franchised restaurants serve pork,
new non-fast food franchised restaurants with pork on the menu may face difficulties
in obtaining approval.
40
4.2 SUMMARY OF MY RESPONSIBILITIES
I successfully finished my practicum period as a food and beverage assistant,
frontline person, back of the house staffs and cashier at KRR KLCC convention
centre. My responsibilities as FBA are welcoming the guests, giving the menu card to
the guests, taking guests orders, serving the food correctly to the guests by following
the cover note, cleaning the tables, sweeping and mopping the floor and fulfilling the
guests’ needs.
Beside that as the frontline person, i prepared the food and drinks according to the
menu sheet, keeping the frontline place clean, top up the products when it get less.
Always make sure all the products are fresh and safe to consume. Further more, as
the BOH staffs i helped the team to make products such as muffin. Beside that, I also
washed the plates and the cups.
Finally, as cashier my responsibility is to punch in the order into the cashiering
machine, giving out the bill, receive the payment from the guests and returning the
correct change. When the shift comes to an end i need count the float money and the
sales money to make sure that money is correct.
On top of all these responsibilities, i need to take a good care of the guests and give
legendary service to them.
4.3 NEW EXPERIENCES
At Kenny Rogers Roasters restaurant, everyday taught me useful and enjoyable
experiences. At KRR, it’s all about services. Since, i am used to the service sectors
but i really enjoyed my each day of work. I got chance to meet new people and gain
41
New knowledge from them.
Besides that, i had been through exciting moments by representing KRR KLCC for
the semi final and final of Roaster Challenge 2006. In this Roaster challenge 2006, i
got the chance to meet most of the KRR staffs from all over Malaysia and the
management people. I spend time with them to share their experience at KRR.
I was so thrilled when we were chosen to enter the final competition and we got even
more excited when we were announced as the Bronze Winners. I and my team
members received the medal and Rm200 cash money. It was the happiest moment
at KRR.
Please refer to appendix 4 for my photos that snapped during Roaster Challenge Day
2006.
42

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UNIVERSITI UTARA MALAYSIA BERJAYA ROASTER (M) SND BHD

1.1 ORGANIZATION PROFILE

Kenny Rogers Roasters (KRR) is a leading international wood-fire roasted chicken

Roasters has grown to more than 80 stores in 6 countries namely Malaysia,

Berjaya Group Berhad was established in Malaysia in 1993. The company is

principally engaged in the development and operation of the "Kenny Rogers

Roasters" chain of restaurants in Malaysia.

the Kenny Rogers Roasters team” (www.kennyrogers.com.my).

rotisserie chicken restaurants in Malaysia without compromising our principles and

preparation to delivery of products. Offering affordable, fresh, wholesome and

not least, recognizing that profitably is essential to KRR future success.

1.5 PHILOSOPHY AND CORPORATE CULTURE

price and excellent service by their people or team member.

First is teamwork towards winning and success. Second, passion in everything we

importantly, is to have fun.

1.6 CORPORATE BUILDING

black outfit and wear a red colour apron.

1.7 ORGANIZATION TEAM

Refer appendix (1)

1.8 CORPORATE STRUCTURE

I practise my industrial training at Kenny Roger Roaster at ground floor, KLCC

convention centre, Kuala Lumpur. It situated strategically beside KLCC Aquaria.

1.9 PARENT COMPANY ORGANIZATION POSITION IN BSKL

The Berjaya Group of Companies' history dates back to 1984 when it

Inter-Pacific Industrial Group Bhd) became the holding company of Berjaya

Industrial. Inter-Pacific had been incorporated as Raleigh Bhd in 1967 as a bicycle

manufacturer. It gained official listing in KLSE in 1969. (www.berjaya.com.my)

Malaysian conglomerate with an annual turnover of over RM7b. Its activities

development, vacation timeshare, property investment and development, consumer

marketing and direct selling/services, gaming and lottery management, restaurants,

Berjaya Capital, Unza, Dunham-Bush,Cosway and Matrix International (formerly

known as Gold coin (Malaysia) Berhad) are also listed on KLSE.

Stock Name is BJGROUP. Stock Code is 3395. then, ISIN is MYL3395OO000

on 13/02/69. BJGROUP was incorporated On 31.7.67 as a private limited company

company on November 2, 1968. (www.berjaya.com.my)

1.10 SERVICES AND PRODUCTS

2.1 COMPETITIVE ADVANTAGE

According to the Competitive Advantage model of Porter, a competitive Strategy

takes offensive or defensive action to create a defendable position in an industry, in

Investment. According to Michael Porter, the basis of above average performance

within an industry is sustainable competitive advantage.

Another sources mentioned that competitive advantage is a competitive advantage is

an advantage over competitors gained by offering consumers greater value, either by

higher prices. (www.tutor2u.net)

Competitive analysis is a condition which enables a company to operate in a more

efficient or otherwise higher-quality manner than the companies it competes with,

As mention above, Competitive advantage is something a company does especially

the competitive advantage.

using a competitive advantage model according a resource-based view

emphasizes that a firm utilizes its resources and capabilities to create a

competitive advantage that ultimately results in superior value creation. The

analysis uses the diagram that combines the resource-based and

positioning views to illustrate the concept of competitive advantage.

According to the resource-based view, in order to develop a competitive advantage

Ritzman, L.P. (2005).

examples of such resources Patents and trademarks, proprietary know-how, installed

customer base reputation of the firm and brand equity

These competencies enable innovation, efficiency, quality, and customer

responsiveness, all of which can be leveraged to create a cost advantage or a

Competitive advantage is created by using resources and capabilities to achieve

component of the firm's competitive strategy.

differentiation. The competitive advantage for KRR is analyzed by using the

competitive advantage model.

2.2 SWOT ANALYSIS