BE1203 Principles of Management Individual Case Study Solutions

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APPENDIX 1

CASE-STUDY : OLDTOWN WHITE COFFEE

Malaysians have been coffee drinkers ever since the late 19^th century. This habit was influenced by the Chinese immigrants. Unaccustomed to the bitter and strong British Coffee, the Hainan Chinese modified the taste of Western coffee to be better suited to the palate of the Chinese population. Thus the white coffee of Ipoh Old Town was born and the tradition of making white coffee has been carried on for generations. White coffee is now one of the staple drinks of Malaysians. White coffee was first sold by a Hainanese coffee roasting master in one of the old coffee shops in ‘Old Town’ Ipoh. Gradually, white coffee began to put its mark on Malaysian culture and society. The rise of the popularity of this drink was also due to the arrival of branded retail outlets such as Coffee Bean and Starbucks in the local market around 1997-1998. The Malaysian local coffee culture grew, starting with the commercializing of so called ‘kopitiams’ (derived from the word ‘kopi’, from Malay/Hokkien for coffee and ‘tiam’, which means shop in Hokkien), which is the rebranding of local coffee shops by upgrading their services by not only selling products, but also embracing technology as part of their marketing plans. The OLDTOWN White Coffee brand is an example of this upgrading.

Today, OLDTOWN White Coffee is Malaysia’s largest halal-certified kopitiam. OLDTOWN White Coffee was established by a two-man team, Mr Goh Chin Mun and Mr Tan Say Yap in Ipoh, Perak, in 1999. Initially, the company operated as a local coffee shop but has now expanded its business to almost all stated in Malaysia and as well as internationally. The group opened its 200^th outlet in a period of just over seven years. Now, OLDTOWN is diversifying its products by exporting its instant beverage mixes to more than 14 countries and is publicly listed on Bursa Malaysia’s main board and has expanded even further into café outlets, franchise outlets and food processing facilities.

The company’s vision is to be leading white coffee brand in the Asia Pacific region by providing high quality products to customers globally. Its mission states that ‘Our People: We believe that our people are our assets’. The company believes that its human capital is its most valuable asset and it is thus important to create a stimulating and motivating working environment. It acknowledges its workers as people who grow together with the company and appreciates its workers for their full dedication. Its workers are valued for their efforts and what they are able to bring to the company. This is shown by providing platforms and opportunities for career growth and enrichment knowledge in its workers’ development programmes. A dynamic and challenging workplace is provided to encourage development of employees’ skills, talents and capacities. The aim is to cultivate passion and to instill dedication in delighting customers as an important work value into its staff to bring forth their best efforts, experience and to retain customers’ loyalty.

Currently, OLDTOWN White Coffee outlets in West Malaysia have achieved 100% halal status certification by the Malaysian Islamic Halal Board of the Islamic Affairs Department. This recognition and certification will enable the company to bid and make further ventures and investments into the halal market. The company also intends to restructure its services-oriented business mode and move towards a self-service concept, together with the launching a new range of set menus in their café outlets. For its dedication, the company has received recognition and awards, both locally and internationally. In 2017, it won the Gold Award for the Trusted Brand Awards – Malaysia, organized by Reader’s Digest.

Source: Adapted from Norlida, K, Za’faran, H, Rabiah, A W & Rohaya, M H, 2018. Principles of Management. 3^rd ed. Malaysia: Oxford Fajar

Questions (50 Marks)

1. Why need to know about the evolution of management? [4 marks]
2. List three (3) advantages and three (3) disadvantages of scientific management. [6 marks]
3. Differentiate the Theory X and Theory Y management approaches. [11 marks]
4. From the case study, identify and explain environmental factors influenced OLDTOWN White Coffee?           [14 marks]
5. By relating to behavioural perspective of management, how does OLDTOWN White Coffee show its commitment to its employees? [15 marks]