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COMPANY ANALYSIS

NewAir

TECHNOLOGY ENTREPRENEURSHIP (ENT600) : CASE STUDY

FACULTY & PROGRAMME : FKM – EM220, Exchange Program

SEMESTER : 7

PROJECT TITLE : NewAir Company Case Study

GOUP MEMBERS : 1. Kristin Hülpüsch 2017143029


2. Cindy Heinrichs 2017385183
3. Gerrit van Schwartzenberg 2017571115
4. Fetisia Helena Anak Pengadau 2015126409
5. Amirul Azrai bin Zohari 2015136953

LECTURER : Dr. Mohd Ali Bahari Abdul Kadir


CASE STUDY(ENT600)

ACKNOWLEDGEMENT

In performing our assignment, we had to take the help and guideline of some respected persons,
who deserve our greatest gratitude. The completion of this assignment gives us much pleasure.
We would like to show our gratitude Dr. Mohd Ali Bahari Bin Abdul Kadir, ENT 600 Lecturer, UiTM
Shah Alam for giving us a good guideline for assignment throughout numerous consultations. We
would also like to expand our deepest gratitude to all those who have directly and indirectly guided
us in writing this assignment.

Many people, especially our classmates and team members itself, have made valuable comment
suggestions on this proposal which gave us an inspiration to improve our assignment. We thank all
the people for their help directly and indirectly to complete our assignment.

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TABLE OF CONTENT

ACKNOWLEDGEMENT .................................................................................................................. 2
LIST OF FIGURES ......................................................................................................................... 4
LIST OF TABLES ............................................................................................................................ 5
EXECUTIVE SUMMARY ................................................................................................................ 6
1. INTRODUCTION ..................................................................................................................... 7
1.1. Background and motivation behind the study .................................................................... 7
1.2. Purpose of the study ......................................................................................................... 7
1.3. Business Problem ............................................................................................................. 8
1.4. Informational Background and Supporting Theory ............................................................ 8
2. COMPANY INFORMATION ..................................................................................................... 9
2.1 Background ........................................................................................................................... 9
2.2 Products/Services................................................................................................................ 10
2.3 Technology .......................................................................................................................... 12
2.4 Business, marketing, operational strategy ........................................................................... 14
3. COMPANY ANALYSIS .......................................................................................................... 15
3.1. SWOT Analysis ............................................................................................................... 15
3.2. Consumer Trend Canvas ................................................................................................ 16
4. FINDINGS AND DISCUSSION .............................................................................................. 17
5. CONCLUSION ....................................................................................................................... 19
6. RECOMMENDATION AND IMPROVEMENT ........................................................................ 20
6.1. Customer service system ................................................................................................ 20
6.2. Price of the product ......................................................................................................... 20
6.3. Target audience .............................................................................................................. 20
6.4. Product Innovation .......................................................................................................... 20
7. REFERENCES ...................................................................................................................... 21

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LIST OF FIGURES

Figure 1: Luke Peters ...................................................................................................................... 9


Figure 2: NewAir Al-250W ............................................................................................................. 10
Figure 3: NewAir Al-100BK ........................................................................................................... 10
Figure 4: NewAir ClearIce40 ......................................................................................................... 11
Figure 5: NewAir Al-215SS ........................................................................................................... 11
Figure 6: Luma Comfort IM200SS ................................................................................................. 11
Figure 7: Technology of IceMakers ............................................................................................... 13
Figure 8: Logo amazon ................................................................................................................. 14
Figure 9: Logo BestBuy................................................................................................................. 14
Figure 10: Logo HomeDepot ......................................................................................................... 14
Figure 11: Logo Kohl's .................................................................................................................. 14
Figure 12: Logo Target.................................................................................................................. 14
Figure 13: Logo Walmart............................................................................................................... 14
Figure 14: Logo wayfair................................................................................................................. 14
Figure 15: Logo Facebook ............................................................................................................ 14
Figure 16: Logo YouTube ............................................................................................................. 14
Figure 17: Logo Instagram ............................................................................................................ 14
Figure 18: Logo Pinterest .............................................................................................................. 14

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LIST OF TABLES

Table 1: SWOT Analysis ............................................................................................................... 15


Table 2: Consumer Trend Canvas ................................................................................................ 16

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EXECUTIVE SUMMARY

This is an attempt to know how the theories can be applied to practical situation. As a student in
UiTM Shah Alam, it is a part of study for everyone to undergo a case study project. So, for this
purpose, we got the opportunity to research a company which manufactured the same product that
we want to develop, which is NewAir ice maker company, currently based in California.

In the first part of the project report, the general information of the company has been collected.
Information is gathered through the primary and secondary source as well.

In the second part of the report, contains the specialized subject study. Objective of the project is
to work on the background, organizational structure, products and services that NewAir provides.
Next, we study about the technology of NewAir ice maker, which is basically a normal technology
used by the refrigerator in freezer section, as well as business, marketing and its operational
strategy used by the company to promote their products which we find quite interesting. Lastly, we
research about the company financial achievements regarding how they manage their financial as
well as achievements gain from the financial management.

Goals indicate what a business unit wants to achieve. Strategy is an action plan for getting the
goals. Every business must design a strategy for achieving its goals, consisting of a marketing
strategy, and an effective management.

In this case study, we analysed the strength, weaknesses, opportunities and threats of this
company in real business world by using SWOT analysis. Thus, from the needs and demands from
the existing consumers of this company, we analysed and find a solution to overcome and to fulfil
their needs in Consumer Trend Canvas (CTC) analysis, making it as our innovation to be
continued in new Product Development task.

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1. INTRODUCTION
‘’Either wright something worth reading or do something worth writing.’’ – Benjamin Franklin1

1.1. Background and motivation behind the study


In order to find a suitable topic for a case study which key element it is to identify a product that
has significant potential to be innovated, the group figured it would be most useful to study a
product that many people require to use. Considering the local hot weather, it would only make
sense to address something that has to do with cooling – in this case an ice maker.
Common ice makers are traditionally difficult to use for instance on public beaches, since they
would mostly require a wired power connection and filtered water.
The idea came to the minds of some of the group members since they spent a day in a hot natural
environment which after long period of time made all the foods and especially the beverages
unenjoyable. A solution is now required which is the very reason for composing this study and its
following innovational process.

1.2. Purpose of the study


The purpose of the case study is to fully get access to the details of this product and its company
to detect possible flaws and product regarding aspects that can be picked up by the group
members to come up with the best implementation of our innovations that were going to be added
to the given problem.
At the completion of this study the goal is to have evaluated a broad innovation concept which
implementation in the blue print will then occur more smoothly and without any aspects missing.
The case study therefore is supposed to regard this matter from each and every direction to
provide all the needed information for a fitting business plan.

1
Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology Entrpreneurship",
Global Mediastreet Sdn Bhd, pages xiii

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1.3. Business Problem


The market of ice makers nowadays is quite large and its range longs from devices used in
manufacturing processes to devices that are only used for personal interests only.
The problem of this product doesn’t lie within its market saturation but rather of its adaption to the
customers’ needs. The general concept is mostly the same no matter if we look at NewAir, Igloo
Coolers or any other competitors that promote similar products. The basic ice maker usually
requires a wired power connection, has limited ice capacity, lacks quality standards that enable a
long-term use, only work with filtered and most significantly do not cover many markets that enable
company growth. For instance, there is no product that targets people of young age directly, which
is a great amount of unused potential.
At this point our idea steps in, which is supposed to enhance the given product by the aspect of
wireless transportation and power by adding solar power to the basic concept. Also, there will be a
water filtration system that enables e.g. wanderers to use any water source they find to use for
making ice to cool off after a long day of walking.
This is only one aspect the current concept is missing to generate more market share and satisfy
customers properly.

1.4. Informational Background and Supporting Theory


To be generally informed about the functions and misfunctions of a product it is first of all important
to collect personal experience data from product reviews given on the online webpages of the
retailers. These ideas then may be picked up to generate ideas and compose innovations based
on relevant customer complaints, such as design, power usage, isolation and many more.
Since the general function behind an ice maker is the one of a common freezer, information has
been collected from science books in terms of fluid dynamics, or to be exact, what components an
ice maker consists of and how they function by the means of having an overview of the materials
which are going to be used for a prototype. In order to be highly informed about the very product
this study is about, the presented company by the name of NewAir has been contacted via social
media, their corporate contact platform and E-Mail to increase the chance of being provided with
actual company information so that assumptions wouldn’t have to be made.

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2. COMPANY INFORMATION
The company NewAir is a manufacturer of luxery compact home appliances.

2.1 Background
 Founded in 2002
 Family Owned
o Luke Peters – founder and CEO

Figure 1: Luke Peters2

 California Based
o 6600 Katella Ave, Cypress
o +1 657-2574349

 Over 60 employees
 100.000 sqm distribution centre
 Sister Brand: luma comfort

2 https://www.businessnewsdaily.com/10410-luke-peters-newair.html (Status: 07/04/2018)

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2.2 Products/Services
NewAir’s products are:

o Ice Makers
o Wine & Beverage Coolers
o Portable Air-Conditioners
o Evaporative Coolers
o Water Dispensers
o Cigar Coolers
o Dehumidifiers
o Heaters
o Fans

NewAir’s portable Ice Maker:


NewAir AI-250W
Model: AI-250W
Product Type: 50-Pound Portable Icemaker in White
Product Dimensions: 13.58"L x 15.75"W x 13.70"H
Product Weight: 21.61 lbs.
Prize: $239.95

Figure 2: NewAir Al-250W3

NewAir AI-100BK
Model: AI-100BK
Product Type: 28-Pound Portable Ice Maker in Black
Product Dimensions: 14.50"L x 11.75"W x 15.00"H
Product Weight: 24.30 lbs.
Prize: $189.95

Figure 3: NewAir Al-100BK4

3
www.newair.com/ice-makers/
4
www.newair.com/ice-makers/

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NewAir ClearIce40
Model: ClearIce40
Product Type: 40 Pound Clear Portable Ice Maker
Product Dimensions: 14.76"L x 11.30"W x 14.06"H
Product Weight: 23.15 lbs.
Prize: $249.95

Figure 4: NewAir ClearIce405

NewAir AI-215SS
Model: AI-215SS
Product Type: Portable Ice Maker - 50 Lbs. Daily
Capacity
Product Dimensions: 14.25"L x 16.88"W x 16.75"H
Product Weight: 37.60 lbs.
Prize: $279.95
Figure 5: NewAir Al-215SS6

Luma Comfort IM200SS


Model: IM200SS
Product Type: 28 Pound Clear Portable Ice Maker
Product Dimensions: 11.13"L x 14.25"W x 13.88"H
Product Weight: 25.30 lbs.
Prize: $239.99

Figure 6: Luma Comfort IM200SS7

5
www.newair.com/ice-makers/
6
www.newair.com/ice-makers/
7
www.newair.com/ice-makers/

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2.3 Technology
The process of ice making by using ice makers is pretty much the same with the process done by
common refrigerators. Clear ice makers, for example, do not freeze whole pockets of water at a
time like refrigerator ice makers do. Instead, they lay down thin layers of water, freezing from the
inside out so that there are no microscopic cracks from escaping particles and the ice stays clear.

A portable icemaker works a little differently compared to commercial ice makers. A portable ice
maker freezes the water directly instead of filling an ice mold with water and then putting the ice
mold into a freezer. Thus it takes much less time to complete a batch of ice.

How NewAir’s portable ice maker works.

1) Water is added manually into the unit’s water reservoir, up to the fill line.
2) The water is pumped in the bottom via a hole of the reservoir through a water filter and up
to an ice tray at the top of the unit. Any overflow spills back into the reservoir.
3) When the refrigeration cycle begins, the 1/2-inch prongs on the heat exchanger are lowered
into the water of the ice tray. Ice begins to form on the submerged spikes in a matter of
minutes.
4) The size of the ice cubes depend on how long the prongs are left in the water. A longer
cycle means thicker pieces of ice. Small ice usually takes about 6 minutes, while large ice is
about twice that, though freezing times can be affected by the ambient temperature and
how long the unit has been running.
5) When the ice has reached the proper size, the ice tray empties any remaining water back
into the water reservoir. At the same time, the heat exchanger reverses itself and the spikes
start to heat up just enough so that the ice pieces slide off the prongs and tumble into the
ice bin that’s above the water reservoir.
6) A second sensor on storage basket monitors the amount of stored ice, and shuts off the
system if it gets too full.

Refrigeration Cycle

The vapor-compression refrigeration cycle used in a Newair’s portable ice maker is the same that
is used in an air conditioner, refrigerator or freezer. In a freezer or refrigerator, the cold air
produced by the evaporator is collected in the unit’s insulated interior. In an air conditioner, the cold
air is distributed throughout the room by means of a fan. In a portable ice maker, however, the cold
produced by the evaporator is concentrated in the prongs attached to the evaporator, so that ice
forms on them when they are immersed in fresh water.

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This process is based on the scientific principle of thermodynamics, which explains the transfer of
heat during evaporation. When a coolant, like refrigerant, transforms from a liquid into a gas, it is
able to absorb the surrounding heat during the transformation. The coolant then releases that heat
when it changes back into a liquid. The coolant that being used in Newair’s portable ice maker is
R134a Refrigerant. R134a is also known as Tetrafluoroethane (CF3CH2F).

A refrigeration system has four main components that facilitate the transfer of heat via the coolant.
These components are:

Figure 7: Technology of IceMakers

Compressor: Compresses the coolant, turning it into a hot, high pressure gas

Condenser: A set of coiled pipes on (or near) the exterior of the unit that dissipate heat as the
coolant transforms into high water pressure

Expansion Water Valve: Also known as an inlet valve. It releases the pressure on the coolant,
turning it into vapor again and lowering the temperature of the coolant

Evaporator: Another set of heat-exchanging pipes on the interior of the unit that make the interior
of the unit cold

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2.4 Business, marketing, operational strategy


Since 2012 NewAir completely shifted the focus on B2B relationships.
NewAir’s dealers are:

 Amazon  BestBuy

Figure 8: Logo amazon Figure 9: Logo BestBuy

 The Home Depot  Kohl’s

Figure 10: Logo HomeDepot Figure 11: Logo Kohl's

 Target  Walmart

Figure 12: Logo Target Figure 13: Logo Walmart

 Wayfair

Figure 14: Logo wayfair

NewAir is placed on:

 Facebook  Youtube

Figure 15: Logo Facebook Figure 16: Logo YouTube

 Instagram  Pinterest

Figure 17: Logo Instagram Figure 18: Logo Pinterest

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3. COMPANY ANALYSIS
3.1. SWOT Analysis
POSITIVE NEGATIVE

STRENGTHS WEAKNESSES
INTERNAL FACTORS

 Leader of the market  Niche market located in upper class


 Well established in the US market society
 Strong connection to customer base  Limited marketing expertise
 Huge variety of products  Higher price than competitions
 High quality products  Occasional Quality check failures
 Good service: free shipping and warranty  Less usage of potential Internet Selling
 Attractive design compares to competitions

OPPORTUNITIES THREATS
EXTERNAL FACTORS

 Increasing tourism, new market is formed  Declining potential of customer group


 Growing wealth, especially in Asia  Other companies use advanced
 Global warming, increasing temperatures technologies (solar power)
demand of cold drinks  Huge amount of competitions

Table 1: SWOT Analysis

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Table 2: Consumer Trend Canvas
 good quality of ice cubes  Combine all expected demands in one
 Life style  portable device device
 cold drinks with ice cubes
changes  refreshing product  Starting in Klang Valley
 flexibility
 More holidays +  filtering systems
 mobility
3.2. Consumer Trend Canvas

celebration  renewable energy


 climate change source
 polluted water

16
Ice Maker including
waterfilter system
powered by solar
 Reliable cheap portable energy
device that makes ice
 Portable filter maschine  Young Familys
 Solar powerd
 Ice cube maker  Party lovers
 Clean ice cubes made of
 Solar powered  travellers
clean water
 Leisure time + wherever
they are
 Enjoying cold drinks and
feeling comfortable in hot
weather conditions
CASE STUDY(ENT600)

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4. FINDINGS AND DISCUSSION


The strength of the company NewAir and its brand has many positive aspects like marketing and
prize advantages. However, it is also the leader position which avoids the company of innovative
development. Due to its long duration as good positioned brand in the market, no reconsideration
of its technology strategy was taking place. Reaching their aim of being top seller of home devices
maybe stopped them of looking ahead to future development of the market and the demand of
costumers. For the development of innovation, creativity as a source of ideas is required. Several
techniques like problem reversal, attribute list or lateral thinking support this process. Innovations
do not always imply complete new products or services but also include the extension, duplication
as well as synthesis of a product based on the costumer’s demand.8

Although NewAir created a huge brand within the last sixteen years, it has still difficulties to spread
their products all over the world. The lack of marketing expertise and the failure of using the
complete potential of the internet market lead to limited access for customers who do not live in the
United States of America. As a result, many potential customers are not addressed by the products
of NewAir. This applied modern marketing strategy is called e-business and is in our days one of
the most important purchasing channels. Moreover, e-commerce which is a part of the e-business
focuses on the online buying and selling actions.9

The high prizes of their products are probably related to the high-quality standards but also to their
market leadership. This fact is responsible for a relatively limited costumer group of the upper-class
society. In general, market development strategies enable the growth of purchasing area in order
to involves a broader range of customers. Potential customers may come from geographically
different markets and from different demographical or psychically segments. Companies applying
these techniques need to come out of the comfort of their existing market and need create the
basics for future customers, which may lead to more independence.10

Based on the findings of our study, we can say that this company might face some problems in the
future regarding the competitiveness of the product and their customer service. They should do
some changes in their customer service system and top up their ice maker technology.
There is a lot of complaints regarding the product based on the feedback of the customers. Most of
the customers said that this company’s ice maker is overly expensive and does not last longer than

8 Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology Entrpreneurship",
Global Mediastreet Sdn Bhd, pages 11,15,22,23
9 Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology Entrpreneurship",

Global Mediastreet Sdn Bhd, pages 180,181


10
Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology Entrpreneurship",
Global Mediastreet Sdn Bhd, pages 161,163

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one year. A cheap product with short lifetime or an expensive product with high quality and longer
lifetime is far more preferable over a product with a high price that doesn’t have a long lifetime.
In order for them to compete well in the industry of ice makers, they should come up with new
ideas. For example, they should implement solar power instead of just using electrical power at
home for the ice maker. Here is the situation: Summer comes, and people never have enough ice
for the coolers for all the outdoor activities. Going up to the farm on weekends, fishing, boating,
going to the beach, picnicking and so on. They would always have to go to the supermarket or mini
market for ice, which gets very inconvenient over time. Yes, they have an icemaker in the kitchen,
but is it not portable enough to be used for outdoor activities. Also, keeping lots of ice in the other
freezer hogs, requires too much space and it does not remain frozen long enough before it starts to
melt. In the conjunction, customer service is arguably the most important thing for your business.
To get decent and great customer service can overcome poor marketing, but it is incredibly difficult
and expensive to replace poor customer service with even the most exceptional delightful
marketing.
These are some points of the complaints and feedbacks from the customers regarding the
customer service of the company which is usually considered universally unacceptable:

 Unprofessional and impersonal interactions


 Long waiting and response times
 Poor attention to detail
 Company reps with lack of experience and knowledge

Poor customer service can lead to a loss of customers and damage the company’s reputation and
ultimately affect the company’s business. Hence, they should overcome this situation effectively.
There are some limitations that we faced during conducting this study. First, this company is based
in California, which is physically unreachable regarding a current visit and we couldn’t obtain
information about the company by hand. Next, there is only a few websites that cover the
information about the company and their ice makers. Thus, the information we get was limited. We
tried to contact the company but did not receive a reply in time. Lastly, the time, given for the
completion of this study is limited.

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5. CONCLUSION
As previously mentioned, NewAir has managed it to perform a transition from a small family startup
into a quite large business, providing plenty of products on the market, which are known for their
supposedly high quality along with skyrocketing prices and a well-paying customer base.
These last three listed points are the exact reason for change and make innovational revision of
the current product a necessity in terms of intelligently establishing new markets for this brand by
providing products not just for high paying upper-class society members, but for all different kinds
of people.
To achieve a wider range of customers, various steps of change are to be made with the aim to
innovate the company’s product, dominate new markets, and increase sales throughout the globe.
This vision statement is attempted to make it a reality by implementing the idea of producing a
smaller, portable ice maker which will be supplied with solar energy as a renewable power source,
so that the product will enter a whole different market in terms of families, young people, wildlife
enthusiasts and many more taking it out into nature to enjoy ice wherever they need it, whenever
they need it. Also, there will be a filter module applied to this concept for the customers to be able
to use any water source available.
Still some of these corrections, general changes and innovations have to be made under the
assumption of a few confidential aspects, which the company did not reveal to us in time before the
completion of this document.

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6. RECOMMENDATION AND IMPROVEMENT


6.1. Customer service system
This problem will be solved if the company provides extra ways to connect with the customer.
Currently, they have a “Contact Us” section and a Facebook page, but the problem is, they do not
reply to customers once contacted. This is one of the major problems that they are facing
nowadays and will affect them in the future. They can overcome this issue by hiring more customer
service workers, increase their channel of networking like Whatsapp and other methods of
telecommunication that can instantly reply to customers.

6.2. Price of the product


As mentioned before, the price of NewAir products is slighty higher than other existing products in
the market and this kind of strategy will limit their target audience. They can solve this problem by
reducing the price, maintaining the price and give away gifts, or creating a promotion for limited
time as this will urge the customers to buy.

6.3. Target audience


Currently, their product is only available for shipping in the american region. To increase their
target audience and profit, they must spread their company’s existance to another significant
geographical region like Asia and Africa. There are two methods to do so. First by franchising or
hiring a dealer and secondly by increasing the shipping network. By franchising and hiring a dealer
means that the company spreads its product worldwide, enabling the customers from other regions
to enjoy the products, as well as saving the costs and time regarding the warranty. It means that
the customers don’t have to ship back to California just for repairing the product, they just have to
send it to the local dealer. Second, by collaborating with DHL, FedEx and any shipping companies
to ship NewAir products all around the world. The only problem is this will not solve the warranty
matters. They still have to ship back to California for any repairing.

6.4. Product Innovation


In order to get access to the previously mentioned markets and target audiences it is of significant
importance to implement new technological innovations which generate higher demand, an
increase of sales and more satisfied customers. These innovations include making the ice maker,
which is usually attached to the kitchen power supply, portable through adding solar power as its
chore energy technology. This enables the broad width of customers coming from all different
kinds of areas to take their product whereever they like it in order to enjoy their ice for instance
either at a beach or in some forrest. Regarding the usually undrinkable water at these mentioned
locations, there will be a water filtration system attached to the technology system.

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7. REFERENCES
http://www.newair.com/ (Status: 07/04/2018)

https://www.businessnewsdaily.com/10410-luke-peters-newair.html (Status: 07/04/2018)

Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology


Entrpreneurship", Global Mediastreet Sdn Bhd

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