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MBB2523 Organizational Management Case Study Assignment Answer
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Case Study: OLDTOWN White Coﬀee
Malaysians have been coﬀee drinkers ever since the late 19th 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 1997-98. The Malaysian local coﬀee culture grew, starting with the commercializing of so called ‘kopitiams’ (derived from the work ‘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 states in Malaysia and as well as internationally. The group opened its 200th 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 cafe outlets, franchise outlets and food processing facilities.
The company’s vision is to be the 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 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 of knowledge in its workers’ development programmes. A dynamic and challenging workplace is provided to encourage development of employee’s skills, talents, and capacities. The aim is to cultivate passion and to instil dedication in delighting customers as an important work value into its staﬀ to bring forth their best eﬀorts, experience and to retain customer’s 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 service-oriented business mode and move towards a self-service concept, together with the launching a new range of set menus in their cafe 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.
Case Study Questions:
- Identify any TWO (2) speciﬁc environment and TWO (2) general environment of OLDTOWN White Coﬀee. Describe your answer by including an example to support your
- Relate how OLDTOWN White Coﬀee may have applied the Scientiﬁc Management Principles by Frederick
- Since OLDTOWN White Coﬀee is going internationally, describe the challenges in today’s
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