Comparative analysis-of-2-business-in-differen-geographical-locations-150122054419-conversion-gate02

SCHOOL OF ARCHITECTURE, BUILDING & DESIGN

FOUNDATION IN NATURAL AND BUILT

ENVIRONMENT

MODULE: ENGLISH 2 [ELG 30605]

REPORT TITLE: A Comparative Analysis of 2 Businesses of Similar

Industry in Different Geographical Locations

Group Members: Alan Koo Ka Lok [0318757]

Beh Nianzi [0319445]

Lee Pui San [0319089]

Lum Si Chu [0319502]

Saw Hwei Ying [0318093]

Tan Kah Jun [0320119]

Toh Kean Hou [0319575]

Table of Contents

No. Contents Pages

1. Artistic Cover

2. Cover Page

3. Table of Contents

4. Key Summary

5 Description of the History of the Business Involvement

6. Brief Description of the Business

6.1 Leng Hiang Restaurant

6.1.1 Brief Description of Leng Hiang Restaurant

6.2 The Oriental Food Restaurant

6.2.1 Brief Description of The Oriental Food Restaurant

7. Comparative Analysis of the Business’ Comparative Traits7.1 Summary Table of Differences and Similarities

8. Recommendation8.1 Leng Hiang Restaurant


9. Bibliography

10. Appendices

11. Reference

Alan Koo Ka Lok [0318757] Beh Nianzi [0319445] Lee Pui San [0319089] Lum Si Chu [0319502] Saw Hwei Ying [0318093] Tan Kah Jun [0320119] Toh Kean Hou [0319575]

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4. Key Summary

We are given an assignment which is to do comparison between both the

similar businesses. It is perquisite to pay a visit and interview the two similar

businesses. In a group of seven, we have chosen food industry, specifically Chinese

cuisine as our topic. So, what is Chinese cuisine? It is foods that are cooked according

to the Chinese’s culture and originates from the regions of china. The first business

that we have interviewed is The Oriental Food Restaurant which is located in Bandar

Menjalara, Kuala Lumpur. Meanwhile the second business that we have interviewed

is Leng Hiang Restaurant which is located in Kepong, Kuala Lumpur as well. Both

the businesses have lasted more than approximately 10 – 15 years. The two similar

restaurants attract different range of costumers. Inevitably, there is always a high

probability of encountering hardships and obstacles in the aspect of business. Hence,

both the similar businesses surely have faced barriers before and after they have

entered this market. In today’s generation, food industry can never be neglected

anymore. This is due to the youngsters and elderlies who prefer eating outside to

eating at home.


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5. Description of the History of Business and Involvement

Two Chinese cuisines – The Oriental Food Restaurant and Leng Hiang

Restaurant, were interviewed. The followings are the history and other elements of the

restaurants. These elements include their origin, the duration of the business has been

going on and traits of survival to keep the business going on.

Chinese food has a long and glorious history on its origin. The perception of

the exploration of food, diet treatment, nutrition and health care, dishware design and

cuisine aesthetics, has been greatly affected by the Chinese cuisines in China. With

China being the third world largest country geographically, each provinces and cities

contain their own distinct style of cooking. In Northern China, wheat is the main

ingredient in most of its dishes. Noodles and dumplings (made out of wheat) are the

everyday dishes for the northern citizens. As for Southern China, rice is more

common than in Northern China. Rice noodles (known as Beehoon in Malaysia) and

Zongzi (leaf-wrapped glutinous rice) are most Southern people’s almost everyday

food. To enhance its dining experience, educated Chinese have created various dishes

with different names, aromas, flavors, and colours. Chinese dishes have also revolved

around the world for approximately four or five thousand years. Although there are

nearly countless Chinese cuisines around the world, the main dishes still maintain in

most pure Chinese cuisine – which is grains, mixed with vegetables, plus a little meat

content. These dishes come in many forms. It can be in fried rice, or people can also

order them individually for sharing purposes. Eventually, the Chinese food culture is

formed as most of the dishes are related to agriculture – grains, flours, etc. Unlike the

Japanese cuisine that contains cold dishes, for example Sashimi and cold noodles,

Chinese dishes are mostly cooked and served hot. This is also linked to the upper


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level of culinary skills and Chinese food culture of the country. Therefore, the ages of

time Chinese people have implement the Chinese culture into Malaysia and come out

with the Chinese restaurant nowadays that we get to interview. Due to the support

from the local Chinese people in Malaysia and the needs from the local who starving

for Chinese dishes. The businesses of Chinese restaurant are growing successfully.

Most of the Chinese Restaurants realize that they can only survive the business in

certain areas which are mostly surrounded by Chinese people. Beside that, Chinese

food is also acceptable to certain Indians people as well.


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6. Brief Description of the Businesses6.1 Leng Hiang Restaurant6.1.1 Brief Description of Leng Hiang Restaurant

Liang Hiang Restaurant is located in Bandar Menjalara, Kuala Lumpur. Due

to certain reasons they still do not own any other branches. However, they are famous

in the Kepong district for their traditional way of cooking their food. They do not

have many employees due to the size of the restaurant. They have about 4 employees

such as waitress, chefs and cleaners. The restaurant serves local traditional Chinese

food. The restaurant does not attract any new costumers but they do have solid

costumers base. Leng Hiang Restaurant has an estimation of 50 – 100 customers per

day. They started this business in the year of 2003. The name of the founder is Cheah

Leng Hiang. The purpose of starting this business is mainly because the owner wants

to earn a living and support her family so that her children can have a better life.

However, she is passionate in the food making business and she tries to incorporate

her passion for food and her love for her family into the business.


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Interview Questions

1) When was the business founded?

Leng Hiang was founded since 2003

2) Who are the key founders?

The key founder of Leng Hiang is Cheah Leng Hiang

3) What prompted the founders to start this business?

Getting enough income to support her daily family expenses causes the

founder of Ling Hiang to start this business.

4) What are your main products?

The main product of Leng Hiang is hometown Chinese dishes.

5) Who are your customers?

Customers are mostly Chinese, very few Indians, and are mostly middle-aged.

6) What is the business’ annual revenue figure?

This question is private and confidential and I reserve to answer your question

7) How many branch offices/stores do you have (if applicable)?

None.

8) Can you provide us a brief history of your business and its most recent

developments? Alan Koo Ka Lok [0318757] Beh Nianzi [0319445] Lee Pui San [0319089] Lum Si Chu [0319502] Saw Hwei Ying [0318093] Tan Kah Jun [0320119] Toh Kean Hou [0319575]

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I worked in a restaurant for more than 10 years before I started my own

business. We went through a hard time at the beginning as I started this

business from scratch and my 10-years-experience. We only survived with

only one hundred plus of daily revenue during the beginning.

9) Do you have many competitors? Who are they? Who are your top 3 competitors?

Actually we focus on our own business. As I know between two to three shops

there will have one restaurant. All of the, have their own business styles and

also their specialties. We run our restaurant in this city but the foods we sell

are categorized as countryside dishes and also more traditional so I think there

are no competitors for my business.

10) Is the business constantly facing strong competition from other competitors?

What strategies have they used to compete with you?

Leng Hiang Restaurant does not have many potential competitors as the prices

of their food are cheaper than others and the quality of their food is satisfying.

Strategy to maintain the costumers are ensuring the freshness and quality if the

food as well as selling the food with reasonable prices.

11) How much capital is required to start this business? What, if any, specialized field

of knowledge do you need to run this business?


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The capital used was around RM 60,000. The knowledge needed is the skill

on how to communicate with customers. The longer the time we run this

restaurant the more knowledge we learnt about the communication between

people.

12) Generally, do you feel it is easy or hard to enter this market? Why?

It is hard for every types of businesses to enter their markets. It depends on

how you manage your business. It is good to start food restaurant because this

business receives or earns cash money. Every customers need to pay cash in

our shop, so it is easier for the money turnover.

13) How do you compete with your competitors i.e. what strategies do you employ to

divert customers away from your competitors?

Have to depends on our service like treating our customers well and serve the

food fast and must maintain the quality then no matter how others compete

with you, you will still win. You must be confident with your food as long as

you think your food is delicious, fresh and must take a good care of those

things ( foods ) then when the customers come you must smile towards them

don’t be grumpy.

14) How often do you release a new product (this assumes the business sells

differentiated products)?


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We didn’t came up with new product often, but instead of that sometimes our

customers will teach us how to cook because our chef is from their hometown

so the foods is all family style and they didn’t have a chance explore other’s

kitchen or other type of foods and then we lack of workers we must do all the

things our self so all the foods is family style and simplified so when the

customers wanted to eat other style they will offer us to cook for them then if

we can do it then we will make for them if can’t then we will apologize to

them.

15) Are your pricing decisions strongly affected by your competitors?

Nope. We are just a small restaurant our price is also very reasonable and

normal. The customers will also come back to our restaurant so I think it

should be okay with the price its reasonable. That’s how I feel..

6.2 The Oriental Food Restaurant 6.2.1 Brief Description of The Oriental Food Restaurant


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First and foremost, The Oriental Food Restaurant (Zi Zoi Sek) is

located in Bandar Menjalara, Kuala Lumpur. They currently have two

branches located in Kuala Lumpur and one in SS2, Selangor. They have

many employees about 11 or more employees such as waitress, chefs,

ushers and cleaners. This Restaurant mainly serves Authentic Chinese

food and their target customers are to mainly the local Chinese families.

Ever since their customers per day is estimably about 150-200 people a

day with their running well business. They have started this business in

the year of 2000. The restaurant is working on it in order to make it

successful day by day. The founder is Jaymen Tam. The motive of them

starting this business is that they could make authentic Chinese cuisines

more popular and well known to everyone. They are recently thinking of

ways to attract younger customers so that their restaurant can be more

famous.

Interview Questions



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The Oriental Food Restaurant was founded since year 2000.


The key founder of The Oriental Food Restaurant is Jaymen Tan.


To make Chinese cuisine more popular in Malaysia is the causes the founder

of The Oriental Food Restaurant to start this business.


The main product for The Oriental Food Restaurant is traditional Chinese

dishes.


Mostly Chinese customers with higher income. Customers pays great attention

on food quality and do not mind the higher cost.


Given the private and confidentiality, I’m sorry I prefer to not answer your

question.



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I have 3 branches in 3 different places. Two are in Kepong but different area

and one is in SS2.


developments?

My first restaurant started in 2000. I have been a chef for 26 years before I

started running my own business. The main dishes of my first restaurant were

desserts. Sooner or later, more dishes were added in the menu throughout the

years. Now, I am planning on operating a fusion restaurant that sells Hong

Kong and Japanese food.


It is unavoidable to have competitors in every businesses. There are a lot of

competitors in our business, like price competitive, the shop design

competitors. Nevertheless, I will always be myself, focus on the target of our

restaurant which is always customers as our first priority. We will serve the

same quality of food based on the benefits we take from our customers. The

competitors are those who sell their foods, which are cheaper than our

restaurant. Also, those who design their restaurant more comfortable or high

class than our shop. The top 3 competitors are Hei Yut, Wong Kong, Gong

Seng all these three are categorized as Group Company.




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Yes. The strong competitors are the group restaurants. The strategies they used

are the attractive design of restaurant, the scene, and also branches.



RM 160,000. There is much knowledge needed for this business. For example,

the knowledge needed to manage the kitchen, the management of workers and

knowing about all the ingredients used and also the stocks. On the other hand,

the knowledge needed for the management of service is also management of

workers, waiters, and the interpersonal skills.


Of course It is hard to enter this market, but i make it as a challenge. Find an

easier way to work. Make it easy and face it so you will not give up half way

when there are problems ahead.



Every business have competitors, we sure have lots of competitors most of

them will compete with us with their pricing or the their decorations but I have

my own aim of my business is to be myself cause my aim is to focus on what

benefits my customers which is we took their money we give back what they

deserve I will not be like they pay rm100 I will not give back rm80.


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This is mainly about personal attitude, just like that day you went out to eat

then you came out with an idea then you will go back and start creating.

Actually our Chinese food we will always follows our tradition like those food

got mix with other traditions (fusion )those we will not be selling for long

mostly 2-3 months cause I feel like fusion foods is not convenient let’s take

dessert as an example such as mango sausage noodle they didn’t sell for long.

Mostly importantly you don’t run too off away from our tradition if not your

restaurant will not last long. We must stick with the youngsters and the old

people if you are off you can’t survive long.


It all depends on customers, if the customers eat because of the price then it

will be affected but if the customers eat because of the quality then we will not

be affected and instead of being affected we will be benefited as well.

7. Comparative Analysis of the Businesses’ Comparative Traits


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7.1 Number of Competitors in Respective Geographical Markets

Restaurant Leng Hiang has very little competitors in its area, Bandar

Menjalara, as it is the only restaurant that serves Chinese homemade dishes.

Since it has started in the year of 2003, Leng Hiang Restaurant has built a

solid customer base over these merely twelve operating years. It has also

gained popularity in Bandar Menjalara throughout these years as the owner

believes that the persistent and always-improving quality as well as reasonable

price offered will bring the customers back even if the customers have tired

the same type of restaurants.

Unlike Leng Hiang Restaurant, The Oriental Food Restaurant has

many competitors in its operating area as there are many Chinese restaurants

that serve basically the same dishes. Also, Bandar Menjalara’s (operating area

of The Oriental Food Restaurant) main restaurants are mostly Chinese.

7.2 Brief Biographies of Each Business’ Top 3 Competitors


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The owner of Leng Hiang Restaurant assumes that there are little or no

competitors due to its unique dishes. The dishes stand out as being more

unique than the other restaurants’. This is because the chefs of Leng Hiang

Restaurant originate from rural area, hence bringing different background

flavours to these dishes.

In regards to The Oriental Food Restaurant the three main competitors

are the restaurant groups around Bandar Menjalara. These include Hei Yuet

Group, Wong Gong Group, and Gong Seng Group. These groups serve very

similar food with The Oriental Food Restaurant but in a more luxuriant

atmosphere. As The Oriental Food Restaurant is a private enterprise, the

company’s capital are far lower than the capital of those three groups. Hence,

making the dining atmosphere a little less classy compared to the three groups.

The restaurant groups are international companies. Therefore, explaining their

ease to withdraw capitals for further investment compared to The Oriental

Food Restaurant that runs as a local business.

7.3 How do the businesses compete with their competitors? What strategies

were/are employed and how successful are they?


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The followings are comparisons on different aspects Restaurant Leng Hiang and The

Oriental Food Restaurant compete to survive in the food industry business.

Price offered is reasonable and

affordable to people who lives in its

operating area – Bandar Menjalara.

Price is cheaper with larger dish

portions compared to other restaurants

Price

Price of dishes is slightly higher due to

better dining atmosphere (optional to

dine in non-air-conditioned or air-

conditioned area) with high quality

dishes.

With ‘Kampung’ food being their

specialty, new dishes rarely appears on

the menu. However, the chef is able to

cook to customers’ requirements – with

customers having the ability to tell the

chef on cooking method to comply to

own preferences. The chefs employed

are ‘Teochew’ descendants, hence

explaining the ‘Teochew’ dishes in the

menu.

Variety of Food Different styles of dishes are offered

with Hong Kong desserts.


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The owner of Restaurant Leng Hiang

pays high attention on the quality of

food to be persistent and always

improving. She believes that persistent

food quality will cause customers to

revisit. Fresh ingredients and the

portion of food is always assured by

the owner to always satisfy the

customers

Quality of Food

The owner always checks on the

freshness of the ingredients and the

flavor quality of the dishes to try to

convince customers that the quality of

the food is really worth the price

charged.

Although Restaurant Leng Hiang does

not employ a lot of waitress, the

serving manner is ensured to always be

polite. The owner ensures the fast

arrival of the customers’ dishes to

prevent them from waiting. Hot water

dispensers are provided at almost every

corner of the restaurant for customers’

easy access to refill their teas or drinks.

Quality of Serving

Many waitresses are employed to

prevent customers from waiting to be

served. Waitresses are well-trained and

understand the chef’s ability, hence

enabling customers to order certain

dishes that are not listed in the


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7.4 What are the obstacles faced by new business who wish to enter their

markets today? Are they easy or difficult to overcome? Why?

The main obstacle new businesses face is the number of already-

existing competitors. It is hard for new businesses to survive if businesses do

not possess unique selling points. The other challenge faced by newbies in the

market is the time it takes to establish good relationships with the customers to

ensure their regular visits. It is hard to attract customers to visit a new

restaurant as they doubt the quality and price of the new restaurants. Also,

customers are more comfortable going to restaurants they trust and are

comfortable with, therefore making it more difficult for new businesses to gain

popularity in the market

7.5 What is the nature of their markets and your justifications?

The nature of the market is monopolistically competitive as there are

many food businesses in the market with different kinds of food provided.

Each restaurant has their own unique menu with different range of services

provided.

7.6 Similarities and differences between 2 businesses

Leng Hiang Restaurant Similarities The Oriental Food Restaurant


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Chinese Target Customers Chinese

Middle-aged and above Age of target customers Middle-aged and above

From morning to night Operating Hour From morning to night

Emphasize the quality of the food Strategy to compete with

others

Emphasize the quality of food

Leng Hiang Restaurant Difference The Oriental Food Restaurant

This business was founded in 19th

July 2003.

Founder and founding

time

This restaurant is founded in 2000.

To earn more money to sustain

her family

Reason for starting this

business

The founder decided to start his own

business due to the dull routine of

working for others.

Only one Number of branch

available

Three branches are available. Two

brunches located in Kepong whereas

the other one located in SS2.

Very little of competitors exist

due to its unique dishes and

reasonable prices.

Competitors Quite a number of competitors, for

example: Hei Yuet Group.

Approximately

RM 60,000

Capital used to start this

business

Approximately

RM 160, 000


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7.7 Business that are Commercially more Successful and Why

Based on consensus, the group agrees that The Oriental Food Restaurant is

more commercially successful than the Leng Hiang Restaurant due to its stronger

management skills. The Oriental Food Restaurant provides better services to the

customers due to the number of waitresses employed. The dining atmosphere is also

cleaner hence more comfortable than Restaurant Leng Hiang. The Oriental Food

Restaurant also provides customers with two options on where to dine – outdoor

with no air-conditioner and indoor with air-conditioner, to satisfy customers’

preferences.


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8. Recommendation

8.1 Leng Hiang Restaurant

Based on the comparative analysis of two businesses in different

geographical locations that we have interviewed. The Leng Hiang

Restaurant should improve their physical looks and service. As far as we

noticed that the painting in the restaurant has began to fall off. It does

affect the physical appearance of Leng Hiang Restaurant to look untidy

and unorganized. Besides that, they should provide service like helping

costumers to refill hot water to the Chinese’s tea port instead of offering

self-service. Moreover, there are insufficient workers. Hence, we

recommend the restaurant to employ more employees to serve costumers

during peak hours. Furthermore, the shop signage is supposed to have a

new replacement since the existing signage is no longer readable and

visible. In addition, they should give out flyers to promote and capture the

attention of others in order to allow others to know their existence in this

area. Lastly, Leng Hiang Restaurant ought to have a printed menu to

convenient the costumers instead of pasting the dishes’ name on the wall.


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According to the comparative analysis of the two businesses. The

Oriental Food Restaurant should advertise their business through social

media. For instance, create a Facebook page to invite Facebook users to

subscribe or like their page in order to promote their restaurant. Offering

discount to the first 100 followers. Besides that, Instagram is a place

where people will upload their breathtaking photographs. Therefore, The

Oriental Food Restaurant ought to register an account to post all of their

delicious food photos on instagram in order to attract people’s attention.

Furthermore, advertising their restaurant through radio so that the name

of the restaurant will be remember easily and soon to be a well-known

restaurant. In addition, The Oriental Food Restaurant should install

televisions due to the emptiness in the restaurant besides tables and

chairs. Setting up televisions are able to entertain the costumers while

they are waiting to be served or their food to come. Last but not least,

they should update their menu once in a month so that it can capture

customers’ interest to pay a visit again.


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9. Bibliography


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10. Appendices

1st Meeting

MINUTES OF THE MEETING

DATE: 1 January 2015TIME: 1:00 pm – 2:30pmVENUE: Classroom D4.08

NAMES OF GROUP MEMBERS TUTORIAL GROUP ROLEAlan Khoo Ka Lok Ms. Cassie ResearchBeh Nianzi Ms. Cassie ResearchLee Pui San Ms. Cassie ResearchLum Si Chu Ms. Cassie ResearchSaw Hwei Ying Ms. Cassie Reserch

NO. ACTIVITY ACTION TAKEN BY1. Decide what kind of businesses should be interviewed All of us

2. Contact the owners Lum Si Chu


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2nd Meeting


DATE: 6th January 2015TIME: 2pm -4pmVENUE: Kepong, Kuala Lumpur

NAMES OF GROUP MEMBERS TUTORIAL GROUP

ROLE

Alan Khoo Ka Lok Ms. Cassie Note TakingBeh Nianzi Ms. Cassie Camera GirlLee Pui San Ms. Cassie Note TakingLum Si Chu Ms. Cassie InterviewerSaw Hwei Ying Ms. Cassie PhotographerTan Kah Jun Ms. Cassie Note TakingToh Kean Hou Ms. Cassie Interviewer/Transport


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NO. ACTIVITY ACTION TAKEN BY

1. Interviewing the business owner All of us

3rd Meeting


DATE: 1th January 2015TIME: 4:00pm – 6:00pmVENUE: Kepong, Kuala Lumpur


ROLE

Alan Khoo Ka Lok Ms. Cassie Note TakingBeh Nianzi Ms. Cassie Camera GirlLee Pui San Ms. Cassie Note TakingLum Si Chu Ms. Cassie InterviewerSaw Hwei Ying Ms. Cassie PhotographerTan Kah Jun Ms. Cassie Note TakingToh Kean Hou Ms. Cassie Interviewer/Transport


1. Interviewing the business owner All of us


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4th Meeting


DATE: 6th January 2015TIME: 4:00pm – 6:00pmVENUE: Classroom E4.14


ROLE

Alan Khoo Ka Lok Ms. Cassie Report WritingBeh Nianzi Ms. Cassie Report WritingLee Pui San Ms. Cassie Report WritingLum Si Chu Ms. Cassie Report WritingSaw Hwei Ying Ms. Cassie Report WritingTan Kah Jun Ms. Cassie Report WritingToh Kean Hou Ms. Cassie Video Making


1. Report in progress All of us


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5th Meeting


DATE: 12th January 2015TIME: 11:30am – 8:00pmVENUE: Library


ROLE

Alan Khoo Ka Lok Ms. Cassie Report WritingBeh Nianzi Ms. Cassie Report WritingLee Pui San Ms. Cassie Touching UpLum Si Chu Ms. Cassie Touching UpSaw Hwei Ying Ms. Cassie Touching UpTan Kah Jun Ms. Cassie Report WritingToh Kean Hou Ms. Cassie Video Making


1. Finalize report writing and Compilation All of us

Survey Questionnaire


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developments?







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Leng Hiang Restaurant


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Name: Cheah Leng Hiang

Age: 51

Jon Position: Owner

Contact Number:

Email Address:-

Founder of this restaurant: Cheah Leng Hiang

Location: Kepong. No. 4, Jalan 6/62A, Medan Putra Business Centre, Bandar

Menjalara, Kepong, Kuala Lumpur,52200.

The Oriental Food Restaurant


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Name: Jaymen Tam

Age: 43

Jon Position: Manager/Owner

Contact Number: 012-231 3559

Email Address: -

Founder of this restaurant: Jaymen Tam

Location: No. 45-G, Jalan 3/62A, Bandar Menjalara,Kepong, Kuala Lumpur. 52200.

11. References


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1. Newman, J. (2004). Food culture in China (p. Xii). Westport, Conn.:

Greenwood Press.

2. Verderber, R. (1970). The challenge of effective speaking (pp. 101-104).

Belmont, Calif.: Wadsworth Pub.

3. Wu, D. (2002). Improvising chinese cuisine overseas. In The globalization of

Chinese food (pp. 56-57). Richmond, Surrey: Curzon.

4. Wu, D. (2001). Changing Chinese foodways in Asia (pp. 127-128). Hong

Kong: Chinese University Press.

5. Pride, W., & Hughes, R. (n.d.). Exploring the world of business and

economics 2. In Business (Eleventh ed., pp. 23-24). United State.

6. Gupta. (2007). Forms of Business Organizations. In Business Studies (6th ed.,

pp. 49-56). Tata McGraw-Hill Publishing Company Limited.

7. Case, K., & Fair, R. (1999). Monopolistic Competition and Oligopoly. In

Principles of economics (5th ed., pp. 281-282). Upper Saddle River, N.J.:

Prentice Hall.


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