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Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
Economics assignment (Analysis of Two business)
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Economics assignment (Analysis of Two business)

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This assignment requires the students to analyse two businesses in terms of their performance in the same market but in different regions.

This assignment requires the students to analyse two businesses in terms of their performance in the same market but in different regions.

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  • 1. Name of Module: Principles of Economics (FNBE0315) Report Title:A Tale of Two Businesses – A Comparative Analysis of 2 Businesses of Similar Industry in Different Geographical Locations Group Members: Haziq Zariful(0314131) : Syafiq Zariful(0314702) : Cassandra Wong (0313365) 1|Page
  • 2. Table of Content Content Page Cover page 1 Table of Content 2 Key Summary 3 Brief Bio of Businesses 4-5 Comparative Analysis of the Businesses’ Competitive Traits 6-11 Recommendation 12 Appendices 13-46 References 47-50 2|Page
  • 3. Key Summary We were given an assignment to compare the analysis of two businesses of similar industry in different geographical locations. We chose to compare businesses in Penang and in Klang Valley on seafood restaurants. The seafood restaurant we chose in Penang is Bali Hai Seafood Restaurant which is located in Gurney Drive and in Klang Valley we chose Bubba Gump Shrimp Co, which is located in Sunway Pyramid. After completing and analysis the report, we found out that Bali Hai would be the more commercially successful business compared to Bubba Gump. Besides that, the similarity of the two businesses is that both are having monopolistic competition. 3|Page
  • 4. Brief Bio of the Businesses Bali Hai Seafood Restaurant i. The seafood restaurant interviewed in Penang is the ‘Bali Hai Seafood Restaurant’ strategically located in the famous tourist spot for local food in all markets, the Gurney Drive. The interviewee is the Group Food & Beverage Manager of the business, Steve Foong. ii. The first outlet opened for the business is at Gurney Drive, the second outlet is at Penang Times Square, the third outlet is at Sungai Pinang and it the biggest outlet so far, the fourth one, is located at Batu Feringghi. iii. The business currently has four outlets in Penang and is going to open the fifth outlet at Damansara. iv. The product mainly sells fresh seafood in various kinds such as lobsters, crabs, shrimps, geoducks, cooked in many types of ways such as steamed, fried, boiled, etc. Popular dishes include: steamed grouper, curry crabs with rice noodles. v. vi. vii. The business‘s first outlet opened at Gurney Drive in 6th December 2005. The business was founded by Mr. Josh Chua; and It was founded because of his love towards food & desire to try on newer types of cooking; he got the inspiration to start this business during his younger years. He worked with his father when he was at a hawker stall selling grill fish at Sungai Pinang, and then eventually passed the grill fish business to his niece to open Bali Hai Seafood Restaurant. What inspired him to call his shop ‘Bali Hai Seafood Restaurant’ was because Mr. Josh loves Bali, and would love to bring a ‘Bali feel’ to their restaurant where he uses the sunset view, seaside location, tablecloth and the dry leaf roof imported all the way from Thailand with the decorations to make customers feel as if they are in Bali. viii. In recent times, the business has used their revenue to add decorations to add a relaxing family atmosphere & also a Bali feel such as the dry leaf 4|Page
  • 5. roofing. The revenue is also used to bring in more sea animals & products to compete with other competitors. The revenue the business gains through their development is currently RM1million per month, where they start the business with a capital of RM600K. Bubba Gump i. The seafood restaurant interviewed in Klang Valley is the ‘Bubba Gump Shrimp Co.’ strategically located in one of the shopping mall in KL, Sunway Pyramid. The interviewee is the assistant Sous Chef, Mr. Pravin. ii. The first outlet opened in KL is at The Curve Mutiara, Damansara. The second outlet in Kuala Lumpur is at Sunway Pyramid and the third outlet is at. Citta Mall, Damansara iii. The business currently has thirty-two Bubba Gump restaurants operated worldwide. Twenty-two of these locations are in the United States, three are in Japan, two are located in Mexico, three are in Malaysia, and one each in the Philippines, Indonesiaand Hong Kong. iv. The product mainly sells fresh seafood in various kinds such as shrimp, salmon, fish, lobsters cooked in many types of ways such as steamed, fried, boiled and more. Popular dishes includes their award winning Dixie style baby back ribs, traditional shrimp cocktails, stuffed shrimps with crab meats, shrimp kebab and more. v. The businesses opened their first outlet in Malaysia at The Curve Mutiara, Damansara in 2008. vi. The business was founded by Viacom Consumer Products vii. Was founded because was inspired by the 1994 film Forrest Gump. The Bubba Gump restaurant is named after the film's characters Benjamin Buford "Bubba" Blue and Forrest Gump. viii. Their recent development is that they are going to open their 100th outlet in Malaysia soon. 5|Page
  • 6. Comparative Analysis of Competitive Traits 1) In Penang, in the Seafood Restaurant market, there are at least 49 competitors, specifically in Georgetown; there are approximately 19 competitors in the market. There is an astoundingly large number of seafood restaurants in Klang Valley, counting to more than 180 firms. Specifically in Petaling Jaya, there are at least 50 firms. 2) In Penang, Bali Hai’s market share is small & its top competitors in the market would be Tan Sam Guan Seafood Restaurant, Pinang Taste Seafood, and Ocean Green Restaurant. In Klang Valley, Bubba Gumps’ market share is the same as the other outlets in Sunway Pyramid & its top competitors would be Manhattan Fish Market, Pantai Seafood Restaurant & Restaurant Fatty Crab. 3) Bali Hai: a) Tan Sam Guan is a seafood restaurant located in Batu Ferringhi founded by locals Liang & Loon. The restaurant is famous for their friendly service, atmosphere & their Malaysian Cuisine. They also serve food other than seafood such as sizzling chicken & fried chicken with honey. b) Pinang Taste Seafood is located at World Heritage Area Carnarvon Street, Georgetown. Their motto "Local Taste with Home Sauce Recipe" signifies that they cook their food such as Nyonya Asam Fish in a local Malaysian way & that all their sauce are made from traditional home recipe. They are also famous locally for cheap dishes at an average of RM3. c) The Ocean Green Seafood is a popular dining place located off Jalan Sultan Ahmad Shah in the city center. The restaurant also gives an open 6|Page
  • 7. view of a popular beach area for couples. The eatery offers famous seafood freshly caught which are cooked in various ways such as the Steam Curry Fish, Sweet and Sour Crab & Scallop Soup. Bubba Gump: a) The Manhattan Fish Market would be the largest competitor; one of the major reasons is that it is also strategically placed in Sunway Pyramid Megamall like Bubba Gump. Another cause is how a globally successful company owns the restaurant; hence, they would have a larger capital, larger suppliers & different types of recipes such as Fiery Cherry Snapper & Manhattan Flaming Prawns. Pricewise, customers would ideally dine in this restaurant than Bubba Gump. b) Pantai Seafood is situated around wooden houses & light industrials; however, the interior has a spacious relaxing family atmosphere. There are cascading tanks with a wide array of seafood to choose from for a freshly cooked meal. Signature Dishes include Pak Cheok Har (Poached Fresh Prawns) & Siong Tong LaLa (Steamed Clams in Superior Soup). c) Restoran Fatty Crab had been well established and known to many people. A Hot spot for Malaysians including Malays as it had been certified as a Halal restaurant. The business can obviously be identified as a local business since it resembles a typical local restaurant, with fans, outdoor tables, local cuisine & stalls where they cook satay and Chicken wings. Other Dishes include Sweet and Sour Sauce Crabs & Steamed Fish. 4) Bali Hai: - The management team would go around the area & eat food from other restaurants not just in their market to spark ideas on ways to cook their food. 7|Page
  • 8. - The manager also encourages employees to spend time with their customers & receive negative/positive comments for the management to reflect on. - The manager would also discuss with chefs & suppliers every 2 weeks to create a new seafood dish. After discussing, the business would then promote their new product to their customers. - Other strategies include the marketing department running programs to promote the restaurant such as partnering with Tourism Malaysia, which sponsors the business through brochures. Bubba Gump: - The restaurant has dancers perform Spanish dancing with the music in the restaurant as a way to make the restaurant more unique. - As a restaurant self-labeled as a family restaurant, the management allows kids under the age of 12 to eat their products for free. This would attract more families, as they would not want to spend a lot. - New products are introduced annually in November/December. - In the marketing department, Bubba Gump promotes themselves by selling merchandise near their shop, also promoting retro brands such as Guinness & Tiger. 5) To enter the seafood restaurant market according to both managers is currently easy as long as there is enough money to start the business, only a small capital would be needed, eg. Bali Hai only needed RM600k from their capital. One of the few obstacles faced in the market pointed out by Bali Hai manager, Steve Foong, is that businesses need to partner with a supplier & to compete with others; a supplier who can supply a large variety of seafood would be needed, however, local fishermen can also provide their services to local businesses, which would be cheaper. The chefs must also have the 8|Page
  • 9. knowledge to cook seafood & furthermore, to compete against competitors, they need to be innovative on cooking new products to attract customers. 6) The seafood restaurant market for both Bali Hai and Bubba Gump has Monopolistic Competition. In a market with Monopolistic Competition, there are many firms, relatively easy to enter, somewhat different products, some price difference & advertisement is important to compete against competitors. i) In Penang, there are approximately at least 49 firms while there are at least 50 firms in Petaling Jaya, this proves there are many firms in the geographical market & that it is easy to enter. ii) The market also sells different types of dishes, in order to compete against competitors, firms like Bali Hai think of a new product to sell in a mere 2 weeks whereas the products of seafood restaurant also varies by their supplier, Bali Hai has approximately more than 25 different types of seafood in different types of ways to cook them. iii) There are also different price differences, local businesses might hire local fishermen or fish for their supply, which, compared to large businesses who hires suppliers providing various types of seafood, would be much cheaper, hence, their price would also be cheaper. iv) Lastly, large businesses such as Bubba Gump & Bali Hai would advertise in order to attract more customers & not lose to their competitors. 9|Page
  • 10. 7) Comparative Analysis Summary Table Competitive Traits (Klang Valley-Based) 45-60 firms 180-200 firms Strong, has low capital, Weak, has high capital, needs to gradually upgrade located at Sunway Pyramid, firm through revenue 2. Barrier to Entry Bubba Gump (Penang-Based) 1. Number of Competitors Bali Hai Seafood Restaurant where there are many people, strong advertisements 3. Differentiated or Standardized Products. Differentiated, eg. Alaskan Standardized, very few King Crab in Salted Egg Yolk, differentiated products Cheese and Crab Meat Whole Scallop 4. Pricing Power Price Maker - sells various Price Taker - few types of seafood that are not differentiated products, some locally found, such as can be cooked at home. Australian Spider Crab & Geoduck. No close product substitutes substitutes found nearby, constant advertising in & advertising 6. Verdict around the area, mutual dependence, inconstant 5. Other Characteristics Many Close product around firm Monopolistic Competition Monopolistic Competition 10 | P a g e
  • 11. 8) Based on our analysis, Bali Hai would be the more commercially successful business. One of the reasons is that there are too many competitors in Klang Valley than Penang & because of this, their advertisements are effective. Another reason is that Bubba Gump doesn’t give too many unique recipes for their products & takes a whole year on creating a new product while Bali Hai only takes 2 weeks & have different types of seafood not just sticking to prawns, shrimp & fish like Bubba Gump. 11 | P a g e
  • 12. Recommendation BUBBA GUMP - The products sold in the firm are too common & can even be cooked at home or at least can be found in other restaurants in a cheaper price such as tempura shrimp or fish and chips. There are very few differentiated products exclusively for the restaurant and also, the dishes focus too much on shrimp & prawn there are only 4 types of dishes for fish. Our recommendation is for the company to issue new products monthly or every 2 weeks, instead of the current annual time. - The price is a major reason why customers are driven away from the firm, since there are many competitors who sell substitute products for a cheaper price. For example, Bubba Gump’s Fish & chips are for RM25.90, whereas in Manhattan Fish Market, their Fish & chips range from RM12.50 to RM19. Aside from food, drinks are only too pricey ranging from RM12 to RM25. Our recommendation is to sell products almost equal to competitors where demand can be equal. BALI HAI SEAFOOD RESTAURANT -The restaurant is located just by the roadside, which makes it unhygienic due to the carbon monoxide from vehicles which can affect the customers eating the food. Besides that, the noise from the motorcycles that pass through can also disturb the customers who are having family dinners. Our recommendation is that they cover part of the restaurant up to maintain the cleanliness and the ambience of the restaurant. -The limited parking spaces are also one of the major reasons why customers are driven away from the restaurant. There isn’t much parking lots based on what we see when we are there. The reason is because it is by the roadside and there is moving traffic which makes customers cannot park by the side. Our recommendation is to provide parking spaces for the ‘Bali Hai Seafood Restaurant’ customers. 12 | P a g e
  • 13. Appendices BALI HAI: Interview notes 13 | P a g e
  • 14. 14 | P a g e
  • 15. Contact Details (Restaurant): Address - 90, 90A, 90B, 90C & 90D, Persiaran Gurney Georgetown 10250 Penang, Malaysia Contact no. - 04-228 8272 Fax - 04-228 8273 Email - seafood@balihaiseafood.com Website - http://balihaiseafood.com Contact Details (Corporate Office): Address - 23, Lorong Birch, Georgetown 10250 Penang, Malaysia Contact no. - 04-227 3667 Fax - 04-228 3667 Contact Details (Current Manager): Contact no. - 016-520 3024 016-445 1001 Email - stevefoong@balihaiseafood.com 15 | P a g e
  • 16. Photos Business Premises Main Entrance With Sign of Name & Logo Overview of the Main Area 16 | P a g e
  • 17. Cascade Tanks With Various Types of Sea Animals Crabs, Lobsters & Clams placed on ice 17 | P a g e
  • 18. Bali Style Huts with dry leaf roofing Traditional Decorations under ceiling 18 | P a g e
  • 19. The Counter Table Windows To Witness Behind the Scenes Actions by the chefs 19 | P a g e
  • 20. The Kitchen Utensils Used The Kitchen 20 | P a g e
  • 21. The Refrigerators & Ovens Chefs Working In The Kitchen 21 | P a g e
  • 22. Products Deep Fried Crab Curry Crab with Rice Noodles 22 | P a g e
  • 23. Steamed Grouper Seafood Fried Rice 23 | P a g e
  • 24. Bali Hai Waiter serving Coconut Crab Meat and Cheese in whole Scallop 24 | P a g e
  • 25. Official Websites & Pages Bali Hai Facebook Page Bali Hai Official Website Home Page 25 | P a g e
  • 26. BUBBA GUMP: Interview Notes 26 | P a g e
  • 27. 27 | P a g e
  • 28. Contact Details (Restaurant): Address - Oasis Boulevard, Sunway Pyramid Shopping Mall, No. 3, Jalan PJS 11/15, Bandar Sunway, 56150 Petaling Jaya, Selangor, Malaysia Contact no. - 03-5638 4559 03-5635 3559 Fax - 03-5637 6559 Email - bubbagumpsunway@gmail.com Website - http://www.bubbagump.com/ Contact Details (Corporate Office) [Naza Corporation Sdn Bhd]: Address - -115 Jalan Raja Muda Aziz
Kampung Baru,
 50300 Kuala Lumpur -Lot 1, Jalan 51A/ 221
46100 Petaling Jaya
Selangor, Malaysia Contact no. - 03-26177999/888 03-79532888 Fax - 03-2681 8928 Website - www.naza.com.my Contact Details (Manager): Contact no. - 01-4633 4733 Email - pravin.devanalran@gmail.com 28 | P a g e
  • 29. Photos Business Premises Main Entrance Promotion outside Entrance to attract customers 29 | P a g e
  • 30. Seating (1) Seating (2) 30 | P a g e
  • 31. Drink Bar Bartenders with Beer Dispensers 31 | P a g e
  • 32. Seating (3) Corner where stocks such as Plates & Cups are placed 32 | P a g e
  • 33. Seating (4) (Outdoor) 2-3 people seating 33 | P a g e
  • 34. Family seating Promotions & Merchandise Outdoors Employee of the Month Wall 34 | P a g e
  • 35. Employees & Mascot Marketing & Promotions Merchandise Shop 35 | P a g e
  • 36. Merchandise Shop Counter Bubba Gump T-shirts 36 | P a g e
  • 37. Bubba Gump Knick-Knacks ‘Kids Eat Free’ & ‘Free Refill’ Promotion Picture RM50 Coupon 37 | P a g e
  • 38. “Kids Eat Free’ Promotion to Attract Families Mother’s Day Promotion Products Shrimper’s Heaven Onion Rings 38 | P a g e
  • 39. ‘I’m Stuffed!’ Shrimp Jambalaya 39 | P a g e
  • 40. Dumb Luck Coconut Shrimp Shrimper’s Net Catch 40 | P a g e
  • 41. Fried Shrimp Buffalo Wings 41 | P a g e
  • 42. Mud Pie Potato Salad 42 | P a g e
  • 43. Menu Cover Page Back Page Specials Menu 43 | P a g e
  • 44. Chicken, Meat, Fish & Pasta Menu Promotion Menu – Front Page Promotion Menu – Back Page 44 | P a g e
  • 45. Websites & Pages Official Website – Sunway Outlet Website – ‘About’ Page 45 | P a g e
  • 46. Official Facebook Page Restaurant Information from Facebook Page 46 | P a g e
  • 47. References [WEBSITES] Gomakan.com. (2014). Bubba gump shrimp co. @ sunway pyramid | gomakan. [online] Retrieved from:http://gomakan.com/go/bubba-gump-shrimp-co-atsunway-pyramid[Accessed: 13 Jan 2014]. Biz.yellowpages.com.my. (2013). Bali hai seafood restaurant. [online] Retrieved from:http://biz.yellowpages.com.my/balihaiseafood/ [Accessed: 13 Jan 2014]. Balihaiseafood.com. (2012). Bali hai seafood market official website. [online] Retrieved from: http://balihaiseafood.com[Accessed: 17 Nov 2013]. Tripadvisor.com.my. (n.d.). Restaurants: find restaurant reviews - tripadvisor. [online] Retrieved from: http://www.tripadvisor.com.my/Restaurants [Accessed: 24 Jan 2014]. goPenang. (2013). Tan sam guan seafood - gopenang. [online] Retrieved from: http://www.gopenang.my/tan-sam-guan-seafood/ [Accessed: 11 Jan 2014]. [WEB BLOG] Shah, S. ( 2013,11th April 2013). Best local restaurants in penang. BEST LOCAL RESTAURANTS IN PENANG, [web log] Retrieved from: http://www.mygola.com/best-local-restaurants-inpenang/q25083 [Accessed: 9 Jan 2014]. Sumptuos ( 2012,21st January 2012). Pantai seafood restaurant (水上人家) @ kg. sg. kayu ara, petaling jaya. Sumptuous®, [web log] Retrieved from:http://sumptuousblog.wordpress.com/2012/01/21/pantai-seafood- 47 | P a g e
  • 48. restaurant-水上人家-kg-sg-kayu-ara-petaling-jaya/ [Accessed: 11 Jan 2014]. Lam, C. ( 2010,23rd March 2010). Fresh & delicious seafood at ocean green seafood restaurant, penang. What2See : Best of Penang Food!, [web log] Retrieved from:http://www.what2seeonline.com/2010/03/fresh-deliciousseafood-at-ocean-green-seafood-restaurant-penang/ [Accessed: 11 Jan 2014]. Chin, W. Z. ( 2014,22nd February 2009). Pantai seafood restaurant @ kg sg kayu ara, petaling jaya. KAMPUNGBOYCITYGAL, [web log] Retrieved from:http://kampungboycitygal.com/2009/02/pantai-seafood-restaurant-kg-sgkayu-ara-petaling-jaya/ [Accessed: 11 Jan 2014]. Kim, S. ( 2013,14th January 2013). Restaurant fatty crab@ taman megah,pj. Yours Truly Saimnicy, [web log] Retrieved from: http://saimnicy.blogspot.com/2013/01/restaurant-fatty-crab-tamanmegahpj.html [Accessed: 11 Jan 2014]. [e-BOOK] Characteristics of Market Structure. (2013). [e-book] California: California Council On Economic Education. p. 1. Available through: econworks.org http://econworks.org/wpcontent/uploads/2013/01/Characteristics-of-Market-Structure.pdf[Accessed: 11 Jan 2014]. [BROCHURE] In Penang Free Map [Brochure]. (2013). Georgetown, Penang: Tourism Malaysia 48 | P a g e

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