ENT600 TECHNOLOGY ENTREPRENEURSHIP

CASE STUDY

WKD ENTERPRISE

PRIVATE

FACULTY OF SPORTS SCIENCES AND RECREATIONS

SEMESTER: 6

PROJECT TITTLE: WKD ENTERPRISE CASE STUDY

PREPARED BY

MOHD ALZAIRUDDIN BIN MAININ (2015955727)

KAMALUDDIN BIN KAMIS (2015561553)

MEGAT SAIFULLAH BIN MEGAT ADNAN (2015748943)

NUR AIN BINTI ABDUL RASHID (2015131974)

AHMAD FAIQ BIN ABD SHUKUR (2015943885)

PREPARED FOR

DR REZIAN-NA MUHAMMED KASSIM

SUBMISSION DATE

21 OCTOBER 2018
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Contents
EXECUTIVE SUMMARY ...................................................................................................... 3

1.0 INTRODUCTION............................................................................................................. 4

1.1 Background of the Study ............................................................................................. 4

1.2 Purpose of the Case Study .......................................................................................... 4

1.3 Problems of the Business ............................................................................................ 4

2.0 COMPANY INFORMATION ............................................................................................ 5

2.1 Company Background ................................................................................................. 5

2.2 Company Info .............................................................................................................. 6

2.2 Organisational Structure .............................................................................................. 7

2.3 Business Model ........................................................................................................... 7

2.4 Products/ Services ....................................................................................................... 7

2.5 Business, Marketing and Operational Strategy ............................................................ 8

3.0 COMPANY ANALYSIS ................................................................................................... 9

SWOT ......................................................................... Error! Bookmark not defined.

STRENGHTS .................................................................................................................. 10

WEAKNESSES ............................................................................................................... 11

OPPORTUNITIES ........................................................................................................... 11

THREATS ....................................................................................................................... 12

4.0 BUSINESS PROBLEM ................................................................................................. 13

4.1 Problem 1: Non long-lasting Product ............................................................................ 13

4.2 Problem 2: Man power ............................................................................................... 14

5.0 RECOMMENDATION AND IMPROVEMENT ............................................................... 15

REFERENCES ................................................................................................................... 17

APPENDIX ......................................................................................................................... 17

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EXECUTIVE SUMMARY

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1.0 INTRODUCTION

1.1 Background of the Study

This study is a research on a local business which known as Warisan Keluarga Damai (WKD)
Enterprise. WKD Enterprise was owned by a local entrepreneur based in Keningau, Sabah.
The company was selected as a reference for completing the case study assignment for
Technology Entrepreneurship (ENT600) subject because of the achievement and potential of
this company in food manufacturing business. This company is the main supplier of fresh
yellow noodles in the nearby districts.

Our group consist of five members who are co-operated together in conducting the case study
research. The assignment that submitted to the lecturer will be evaluate and determine from
the group’s teamwork and the end results of the case study.

This study gave us a lot of experiences, it helps us developed as an individual and improved
our communication skills among the group members, as we conducting a qualitative research
for completing this report.

1.2 Purpose of the Case Study

To identify problems and recommend a possible solution that will help WKD Enterprise to
cope and strive for a better achievements in the future.

1.3 Problems of the Business

There are several problems identified from the company. One of the main problems identified
in WKD’s managements are the lack of man power. WKD Enterprise was first built for smaller
productions only. Therefore, the number of workers and machines used was only in smaller
scale. They were first started with three workers and only one machine. Thus, when the
demand of the fresh yellow noodles increasing from day to day, it is hard for them to work
efficiently.

Second main problem faced by the local business was they cannot supply the customer’s
daily order of fresh yellow noodles. This problem derived from the first difficulty mentioned
above which are lacking of man power. When supply cannot meet the demands of the
customer’s, it will incur losses. The demands for the products are most spiked on the seasonal

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festival like Hari Raya Aidilfitri, Christmas Celebration and so on. This seasonal festival mostly
contribute the most profit from the sales and contribute to the revenue. Therefore, it is
frustrating for the management to unable to take advantage in the profitable situations.

Last but not least, the yellow noodles are not long lasting because they were not using any
preservatives in the process of making it. The product can only be used in two or three days
time. This has caused a limitation in the market because their customer’s will tend to buy the
noodles in smaller scale to avoid the noodles to spoilt.

2.0 COMPANY INFORMATION

2.1 Company Background

Warisan Keluarga Damai (WKD) Enterprise was established on early year of 1990. This
business was started by Mr. Haji Kamidin bin Sirad whom also at that time worked at Hospital
Keningau as a telephone operator. The first factory was located at Kampung Sondoton Baru
Keningau, Sabah. Their main products are fresh yellow noodles and this business scoped
based on manufacturing, packing, delivering as well as food distribution.

Developed from a deep interest in entrepreneur and cooking, Mr. Hj Kamidin has done a
research in fresh noodle’s demands and marketing in the local area and has decided to buy a
second hand shredded noodle machine worth RM 600. Warisan Keluarga Damai was chosen
as the name to represent their business because it was significant with his great grandfather’s
name.

When it was first operated, they started with only three workers and one second hand
machine. Their motto of the business is “Segar, Bersih dan Cepat”. WKD Enterprise was vast

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recognized by the local customers because it was one and only fresh yellow noodles that is
not using preservatives and owned by a local Muslim people.

WKD’s non-preservative yellow noodle was famously known by people and the demand for it
was increasing day by day. Their customers were from different background such as small
stall trader to a tender canteen and so on.

2.2 Company Info

COMPANY : WKD ENTERPRISE SSM : 775290-W

KG SONDOTON BARU, PETI
MAININ @ KAMIDIN BIN
ADDRESS : SURAT 2424, 89008 DIRECTOR :
SIRAD
KENINGAU SABAH.

EMAIL : WKDenterprise@gmail.com BANK : AGRO BANK

ALLOWED : RM
WEB : www.WKDEnterprise.com CAPITAL : 100,000.00
PAID : RM100,000.00
CONTACT 087-330596 MY & CO, KOTA
AUDITOR :
NUMBER : 013-8773355 KINABALU SABAH

FACEBOOK : Wkdenterprise

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2.2 Organisational Structure

Mainin Bin Sirad

Pengarah Syarikat

Ramuniah Binti Pondiling

Tim. pengarah syarikat

Myra Hasle Sulaiman Ismail Alfauzi Mainin Myzan Haslee

Bahagian Bahagian Pemasaran Bahagian Pematuhan Bahagian
Pengurusan dan Promosi Standard Logistik

Almahyunie Mainin Kamsiah Lakada Amirul Farid Nadirah Hatimin

Kerani Pentadbiran Promoter Penyelia Operasi Kerani Akaun

Masshaile Safie Waiman

Pekerja Am/juruteknik Pemandu 1

Arif Lakada
Pemandu 2

2.3 Business Model

WKD’s business was built and started using Mr. Haji Kamidin’s own personal savings worth
RM 30,000. After his business bloomed, he decided to apply for loan with Agro Bank worth
RM 70,000. He used this extra capital to build larger factory and also to buy more machines.
To make the factory more efficient, work-friendly and equipped.

2.4 Products/ Services

The main product produced by WKD is the fresh yellow noodles. Since early 1990,
WKD’s yellow noodles have their own loyal fans and they keep producing more and more
every single year. This yellow noodles is freshly made every day and most importantly, it is not
made with any kind of preservatives. Their production of yellow noodles was made in the early
of the day starting from three in the morning. Unlike any other noodles, WKD’s yellow noodles
are free from bitterness that most likely caused by lye water and also boric acid that help to

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preserved the noodles for days. That is the reason why WKD’s yellow noodles does not taste
any bitterness, do not have a pungent smell and do not last long.

As we know, a highly contain preservatives ingredients in our food is not good for our
health. Thus, WKD’s strived to produced non-preservatives yellow noodles to their consume
for the purpose of highlighting better consumption of healthy food and to maintain a healthy
life. Furthermore, WKD’s yellow noodles are also free from food colouring. This is because, to
put some colour in their noodles they have been using the extract of turmeric instead of a
yellow food colouring. They operated almost every single day except public holiday. They
have scheduled three session of delivery which are the first session started as early as five in
the morning and ended at 10 in the morning. The second session starts at two evening until
five in the evening. The last session started at seven evening until 10 at night. Various
restaurants, canteen at government buildings, stalls, and personal order from Keningau
districts are where they supplied their yellow noodles to.

2.5 Business, Marketing and Operational Strategy

The company started to promote their product through the village at first as they only
open a small factory in the village. As they grew bigger, people start to recognize WKD and
promoted them through the social media such as Facebook, Instagram and many more. They
are well known for their uniqueness as one and only non preservatives yellow noodles at
Keningau district and the fresh taste came from the yellow noodles.

The factory is located in a strategic place where people can walk in by the factory and
can buy their noodles just like a drive through deals. In addition, if the customers wanted a
delivery they can easily contacted WKD’s customer service through Facebook, WhatApp and
through messaging as well as call in directly. Cash on delivery is one of their benefits and the
delivery around Keningau is free of charge.

In order to boost the exposure of WKD’s business more to the public, WKD’s
management have been highly taking advantages of the social medias. This is because, it is
not only free, but also it can be using to increase business visibility widely. Other than that,
WKD business also can interact and connect on more personal level with their customers. In
that way, customers will more likely recognize WKD as a business.

As for now, WKD’s management have been using Facebook as a main medium of
social media and the likes on their page have been increasing to almost 1000 likes. They took
supply from outsource that is special have been certified Halal by JAKIM and customer no
need to worry from where they get the ingredients. At the moment, they possessed a MESTI

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certificate that recognized them as professional in handling food and beverages. The
management priorities the cleanness and freshness of the environment and food they served.

3.0 COMPANY ANALYSIS

STRENGHTS WEAKNESSES

 Cheap price and high quality of  Man power problem

product.  Delivery limited to Keningau district
 Taste of the product was not same only due to the logistics and
as other products. transportation constrain.
 As foods during outdoor activities,  Equipment problems
camping, mount climbing and other  Non-preservatives, product fast
activities. stale.
 no preservatives
 taste of the product was clearly can
be differentiate with the other
distributer
 high quality
 most cheaper product compared to
the other factory and distributer.
 Packaging within 1kg, 2kg, 3kg and
5kg.

OPPORTUNITIES THREATS

 Indirect advertisement based on  Existence of competition

people’s recommendations
 Creating a new medium to channel
the product
- Recommendation base on customer
review on facebook page’s
 Can expand their product toward
any supermarket or to other districts.
 Competition with another supplier
 Uncertainty of customer demand,
Risk of product when produced a lot
of quantity but the actual demand
was not compatible with the total
product produced.
 Raw material supplier problem and
the raw material price

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STRENGHTS

There are several strengths possessed by the WKD’s management. One of their main
strength is that they are using fresh ingredients in making the yellow noodle in every single
day production. They will not re-used ingredients such as flour, eggs, oil, turmeric powder and
organic salt. As mention above, all of the ingredients are fresh. If there are leftovers of yellow
noodles supplies within a day, they will disposed the supplies and will not delivered it to the
customers. This shown that they are very particular in maintaining their cleanliness and
freshness of products. WKD also have a head start compared to other noodles company in
Keningau because the owner is the only local Muslim people which give people more
confidence in buying their products.

In addition, WKD’s yellow noodle also is a non preservative which is a distinctive

measure that will help the consumer’s to differentiate WKD’s yellow noodle and others regular
yellow noodle. The taste of the noodle will not have a sense of bitterness, it is odourless and it
gives a radiant yellow colour since the management of WKD is using a turmeric powder
instead of a yellow food colouring.

Furthermore, with all of the importance aspects already have been taken care of, their
products which is yellow noodles are ensure to have a scrumptious taste and freshness. If
were compared to others factory productions, WKD’s yellow noodles are more high quality.
This is because, WKD are very specific in maintaining their products quality. We can see this
by evaluating on how they took care of handling ingredients in the factory and also we can
evaluate on how the choose their ingredients and not using any preservatives to make the
noodles last longer.

Last but not least, WKD’s yellow noodles also are in advantage in terms of price. If
compared to other productions at Keningau districts, WKD’s yellow noodles are the most
lower in price. It is cheap and this enable more people to enjoy eating a healthy and
scrumptious yellow noodle. For 1 kilogram of WKD’s yellow noodle it will only cost RM 3.30
compared to other competitors which almost hitting RM 4.00 per kilogram. The reason behind
their cheaper price are because, the factory was build on their own land which already helping
them in reducing cost for the payment of renting places. Furthermore, since early production’s
of WKD although they are using a second hand machine but it works well and like new. Thus,
they can cut cost in buying a new much more pricey utilities. Moreover, they also have done
their own packaging in the factory. Their packaging has variety from 1 kilogram, 2 kilogram, 3
kilogram.

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WEAKNESSES

The first weakness of the WKD is they faced insufficiency of product capacity. Due to
overwhelmed demand from the customer, sometimes they could not provide sufficient of
dishes to fulfil the demand of the customers. They would probably cook just the right amount
to go through their business hour.

Next, the weakness of WKD is some customers which usually are the big buyers
wanted WKD to produce a frozen yellow noodle as an alternative of preservative yellow
noodle. The based on the product is frozen noodle, they product are fragile so that, they have
a lot of risk after produced it. Furthermore, WKD has not yet any experiences and also a fully
knowledge in doing so yet. This is because, they would not want to put any preservatives that
will change the taste of the yellow noodles. Thus, making it a frozen noodle might be an option
to do so. The next weaknesses, are the factory only have small parking area is they need
faced by the customers during the peak time. It happened because the factory is located near
the district and it is difficult for the customers to drive through and get their order, due to that
limited parking space is provided. Problem usually happen when it is on the public holiday or
festive season, and sometimes when it is the lunch hour in the weekdays.

Lastly, they also faced disadvantages in handling man power problem. They always
faced difficulties in finding a long term workers although offering a quite high salary. This is
due to the uncertainty of time work due to the sudden spiked of order especially during festival
season and public holiday.

OPPORTUNITIES

Even though WKD face a lot of threats, they gain opportunities by taking fully
advantages of social media such as Facebook and Instagram. Due to the vast exposure of
social medias, WKD has the chance to reach more potential customers even outside of
Keningau district. But, due to transportation restrictions, they are using public transportation
such as busses and taxis in order to deliver the yellow noodles. The customers of WKD’s
yellow noodles have been growth not only at Keningau district, but also to Tenom, Tambunan
and Sook’s districts. Based on the page created by WKD on Facebook, it actually gives more
exposure to the potential customers because the regular customers tend to gives positive
comments and recommendations on their Facebook’s page.

Next, with the popularity gained by WKD, they receive indirect advertisement based on
people’s recommendation. It uses less money but maximise the profit and that is the key of
success. Customer that came will recommend to others due to the unique taste of the

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noodles. At the end of the day, they successfully create a new medium or platform to promote
and channel their product to the customer or buyer.

Lastly, other opportunities of the company are they can expand their product toward any
supermarket such as Giant and Speedmart.

THREATS

No matter how success is your company, there must be threats either from internal or
external. Other than WKD, there are exactly two other companies that sell the same kind of
product so WKD is having competitions among the other seller. With the threats, they will work
harder to ensure that their product is always at the top and highly recommended by the
customers.

Other than that, fresh ingredients and not using any kind of preservatives are needed
to get the product. WKD behind threat is the problem of fresh materials provider. Due to high
demand of WKD product, the company should have a proper plan in maintaining the incoming
source of fresh ingredients.

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3.0 BUSINESS PROBLEM

 Man power problem

 Delivery limited to Keningau district only due to the logistics and transportation
constrain.
 Equipment problems
 Non-preservatives, product fast stale.

4.1 Problem 1: Non long-lasting Product

The yellow noodles are not long lasting because they were not using any preservatives

in the process of making it. The product can only be used in two or three days time. This has

caused a limitation in the market because their customer’s will tend to buy the noodles in

smaller scale to avoid the noodles to spoilt.

4.1.1 Solution 1: Improvement in packaging product and handling with high standard
operation.

Advantages

- To increase the freshness of the product can be retain up to five days.

- Help the company to solve the uncertainty daily demand. Product can be store to the
next day order delivery.

Disadvantages

- If they cannot supply the product to the customer it will wasting in their production.

- They need to increase their money capital to improve the packaging of their product.

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4.2 Problem 2 : Man power

Inefficient of production because of the man power constrain.

4.2.1 Solution 2: hirer more employee and invest some model to improve machinery
equipment.

Advantages

- Efficiency in production. When the addition of employee have been done the working
schedule base on shift seven hours per day and not exceed 48 hour per week can be
conducted.
- Increase employee welfare and company’s revenue.

Disadvantages

- Improving logistic, man power and equipment means they have to invest some model
to solve the problem.
- The company have to train the apprentice to be expert worker so that the worker can
conduct the production sector in the factory.

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5.0 RECOMMENDATION AND IMPROVEMENT

First of all this, company should try to add more branch because their business can
generate income. From that the company can get big revenue from the sales at the other
branch. If they built more branches in other different districts, they also can boost up their
name of company and their product. Furthermore, they can cut the cost of transportation and
no more needed to use busses and taxis to deliver the yellow noodles to other districts outside
of Keningau. Other than that it can provide more job opportunities to other people as their
worker at the factory and also in the delivering branch.

Furthermore, this company also should have been considering using other vehicles
such as motorcycles in order to deliver the yellow noodles. This is because, it is more practical
to deliver to a short distance delivering due to the traffic jam.

In addition, the company also should do more variety in their productions and not only
focusing on producing yellow noodles only. This is due to the popularity and demands by the
customers, they can generate more revenue if they introduce more variety product such as
thin rice noodles, stir-fried ricecake strips with much more advance flavour such as Tom Yam,
Curry and Asam Laksa.

According to the weaknesses mention above, some of their customers are requesting
them to do a dry noodles pack instead of a regular non-preservatives noodles. These
recommendations also are about technologies which the founder of WKD’s are lacking of.
Thus, it is a good suggestion for the founder to take this advantages and learn more about this
kind of technologies in order to retain the freshness of the yellow noodles from two to three
days to five days. This will give a lot of advantages to the company in expanding their
marketing pool.

Lastly, this company can improve their marketing system by using the advantage of
social media as a platform to expose the WKD’s product. The Facebook page for example
eases the customer to get information of the company and create two way communications
within the WKD Company and their customer. The promotion through social media not only
boost up the brand popularity but at the same time create advantage and opportunity to
increase the order and demand of their product.

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APPENDICES

Figure 1 WKD’s delivery service.

Figure 2 Some of the WKD’s yellow noodle ready stock at their factory.

Figure 3 WKD’s Promotion Card.

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REFERENCES

Internet

1. https://www.foodbevg.com/MY/Keningau/506658549537590/WKD-Enterprise
2. https://www.facebook.com/pg/WKDmee/photos/?ref=page_internal
3. https://www.instagram.com/explore/locations//506658549537590/WKD-Enterprise

Interview

1. Mr Haji Kamidin Bin Sirad.

WKD Enterprise, Kg Sondoton Baru,
Peti surat 2424, 89008 Keningau Sabah.
2. Wkd Staff

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