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ENG REPORT ENG REPORT Document Transcript

  • Name of Module: English 2 [ENGL0205] Report Title: A Tale of Three Businesses – A Comparative Analysis of 3 Businesses of Similar Industry in Different Geographical Locations Group Members : Haziq Zariful(0314131) : Syafiq Zariful(0314702) : Cassandra Wong (0313365) : Kelvin Ng (0315081) : Stanley Low (0314883) 1 | Page
  • Table of Content Content Page Cover page 1 Table of Content 2 Key Summary 3 Brief Bio of Businesses 4-6 Comparative Analysis of the Businesses’ Competitive Traits 7-13 Recommendation 14-15 Appendices 16-58 References 59-61 2 | Page
  • 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. and Manhattan Fish Market 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 and Manhattan. Besides that, the similarity of the two businesses is that both are having monopolistic competition. 3 | Page View slide
  • 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. 4 | Page View slide
  • 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. The business‘s first outlet opened at Gurney Drive in 6th December 2005. vi. The business was founded by Mr. Josh Chua; and vii. 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 5 | Page
  • add a relaxing family atmosphere & also a Bali feel such as the dry leaf 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, Indonesia and 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, 6 | Page
  • 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. th Their recent development is that they are going to open their 100 outlet in Malaysia soon. Manhattan Fish Market i. The seafood restaurant interviewed in Klang Valley is the ‘Manhattan Fish Market’ strategically located in one of the shopping mall in KL, Sunway Pyramid. The interviewee is the restaurant supervisor, Muhammad Rohaidi. ii. The business currently has twenty branches of Manhattan Fish Market in 7 | Page
  • Malaysia and 5 offices. Twelve of them are in KL. iii. The product mainly sells fresh seafood in various kinds such as calamari, mussels, fresh salmon, fish and chips, scallops, octopus and many more cooked in many ways like fried, boiled, steamed and more. Popular dishes include single garlic herb mussels, grilled glory dory, and Manhattan flaming prawns. iv. The business opened their first outlet in 2003, Sunway Pyramid Shopping Mall. v. The business was founded by Mr. George Ang. vi. was founded because of the reputable Flutton Fish Market, which was once located below the iconic Brooklyn Bridge 8 | Page
  • Comparative Analysis of Competitive Traits NUMBER OF COMPETITORS 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. MARKET SHARE & TOP COMPETITORS 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’ & Manhattan Fish Market’s market share is the same as the other outlets in Sunway Pyramid & their top competitors would be Manhattan Fish Market/Fish & Co. (respectively), Pantai Seafood 9 | Page
  • Restaurant & Restaurant Fatty Crab. BRIEF BIO OF TOP COMPETITORS 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 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/Manhattan Fish Market: a) [Bubba Gump] 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 10 | Page
  • 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. [Manhattan Fish Market] The Fish & Co. Outlet is also strategically placed in a Megamall, The Paradigm Mall in Petaling Jaya, where there would be many types of customers such as students, workers or tourists. The restaurant is famous for it’s café atmosphere & cooks many different styles of Fish n’ Chips ranging from a western New York style to a local Malaysian style. The menu also constantly grows according to recurring customers. Fish & Co. is also a global company hence they have a large amount of investment for them to advertise & attract more customers. 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. 11 | Page
  • Other Dishes include Sweet and Sour Sauce Crabs & Steamed Fish. STRATEGIES TO COMPETE 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. - 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. Manhattan Fish Market - The restaurant promotes new products, price decrease & combo meals especially for events such as Chinese New Year or Christmas. 12 | Page
  • - The price range is low compared to seafood restaurants in the area. For example, the Fish n’ Chips would be RM21 while Bubba Gump’s Fish n’ Chips is worth RM30-40. - The company encourages all employees to prioritize in their friendly service & view it as an important component to compete with others DIFFICULTY & OBSTACLES WHEN ENTERING THE MARKET 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 knowledge to cook seafood & furthermore, to compete against competitors, they need to be innovative on cooking new products to attract customers. TYPE OF MARKET & JUSTIFICATION 6) The seafood restaurant market for the restaurants in the region of Penang & Petaling Jaya has Monopolistic Competition. In a market with Monopolistic 13 | Page
  • Competition, there are many firms, relatively easy to enter, somewhat different products, some price difference & advertisement is important to compete against competitors. Proofs of such characteristics found in Penang & Petaling Jaya: 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. Even global companies such as Manhattan Fish Market have lower prices as a strategy to attract customers. iv) Lastly, large businesses such as Bubba Gump, Bali Hai & Manhattan Fish Market can be seen in Question 4 (strategies to compete) to have advertisement as a way to attract more customers & not lose to their competitors. 7) COMPARITIVE ANALYSIS SUMMARY TABLE 14 | Page
  • Bali Hai Seafood Restaurant (PenangBased) Bubba Gump (Klang Valley-Based) Manhattan Fish Market (Klang Valley Based) 1. Number of Competitors 45-60 firms 180-200 firms 180-200 firms 2. Barrier to Entry Strong, has low capital, needs to gradually upgrade firm through revenue Weak, has high capital, located at Sunway Pyramid, where there are many people, strong advertisements Weak, has high capital, located at Sunway Pyramid, where there are many people, strong advertisements 3. Differentiated or Standardized Products. Differentiated, eg. Alaskan King Crab in Standardized, very few Salted Egg Yolk, differentiated Cheese and Crab Meat products Whole Scallop Differentiated, eg. Grilled Glory Dory, Small Flame (A variety of flamed prawns, dory fillet & side dishes) 4. Pricing Power Price Maker - sells various types of seafood that are not locally found, such as Australian Spider Crab & Geoduck. Price Taker - few differentiated products, some can be cooked at home. Price Maker - few types of sea animals, but many types of cooked ways such as grilled, flamed, wrapped, etc. No close product substitutes around the area, mutual dependence, inconstant advertising Many Close product substitutes found nearby, constant advertising in & around firm Not many close product substitutes, advertising & promotion only during special events Monopolistic Competition Monopolistic Competition Monopolistic Competition Competitive Traits 5. Other Characteristics 6. Verdict 15 | Page
  • CONCLUSION 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, while little, are effective. Other than advertisements, the large number of competitors can cause a lot of customers in Klang Valley to have different choices in where to eat or might substitute restaurants such as Bubba Gump & Manhattan Fish Market to other seafood restaurants, probably a cheaper one. 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. One of the reasons why Manhattan Fish Market isn’t as successful as Bali Hai is how Bali Hai has many other types of sea animals to cook, which shows that they have a bigger supplier compared to Manhattan Fish Market. While they have fewer types of sea animals, the restaurant make up for it in their cooking, however, Bali Hai also cooks their seafood in various ways, hence why Bali Hai is considered more commercially successful. 16 | Page
  • 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, 17 | Page
  • 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 ambiance 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. MANHATTAN FISH MARKET - Based on unbiased customer reviews, most complaints point out the bad services the outlet has displayed towards them, typically from the waiters. One of the examples they gave was how a waitress gave wrong receipts twice, which, if unnoticed, would’ve charged unnecessary amounts 18 | Page
  • towards either parties. Other complaints include asking cutlery repeatedly, slow response to calls towards waiters & ill-mannered attitudes from staff. Other than bad service, the communication skills from the staff are also poor, as we ourselves have experienced. One of the waiters who wait our tables can’t speak English while another waitress spoke softly & that we cannot hear her. For a restaurant whose strategy to compete is to prioritize service, they simply can’t do so if this keeps up. Hence, we recommend for the recruitment staff of the business to thoroughly consider the workers’ traits, personality & attitude. They must hear out their communication skill & observe their service towards customers during working hours. - When we interviewed the business, finding a table for two was too difficult when moving around. The seats for families & groups were arranged properly, however the seats for a private 1-2 people seating were unorganized & compact, moreover the paths in between the tables were zigzag shaped, which makes it inconvenient for customers to move around. We recommend a reorganization of the seating & since we’ve observed that a full house is rare, some tables and chairs would be unnecessary, thus can be removed for customer convenience purposes. 19 | Page
  • Appendices BALI HAI: 20 | Page
  • Interview notes 21 | Page
  • 22 | Page
  • Contact Details (Restaurant): Address - 90, 90A, 90B, 90C & 90D, Persiaran Gurney Georgetown 10250 Penang, Malaysia Contact no. - 04-228 8272 Fax Email Website - 04-228 8273 seafood@balihaiseafood.com 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 23 | Page
  • Photos Business Premises Main Entrance With Sign of Name & Logo Cascade of the Main Area Overview Tanks With Various TypesClams placed on ice Crabs, Lobsters & of Sea Animals 24 | Page
  • 25 | Page
  • Bali Style Huts with dry leaf roofing The Counter Table Traditional Decorations under ceiling Windows To Witness Behind the Scenes Actions by the chefs 26 | Page
  • The Kitchen Utensils Used The Kitchen 27 | Page
  • The Refrigerators & Ovens Chefs Working In The Kitchen 28 | Page
  • Products Deep Fried Crab Curry Crab with Rice Noodles 29 | Page
  • Steamed Grouper Seafood Fried Rice 30 | Page
  • Bali Hai Waiter serving Coconut Crab Meat and Cheese in whole Scallop 31 | Page
  • Official Websites & Pages Bali Hai Facebook Page Bali Hai Official Website Home Page 32 | Page
  • BUBBA GUMP: Interview Notes 33 | Page
  • 34 | Page
  • 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 Email - 03-5637 6559 bubbagumpsunway@gmail.com Website - http://www.bubbagump.com/ Contact Details (Corporate Office) [Naza Corporation Sdn Bhd]: Address - -115 Jalan Raja Muda AzizKampung Baru, 50300 Kuala Lumpur -Lot 1, Jalan 51A/ 22146100 Petaling JayaSelangor, 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 35 | Page
  • Email - pravin.devanalran@gmail.com Photos Business Premises Main Entrance Promotion outside Entrance to attract customers 36 | Page
  • Seating (1) Seating (2) 37 | Page
  • Drink Bar Bartenders with Beer Dispensers 38 | Page
  • Seating (3) Corner where stocks such as Plates & Cups are placed 39 | Page
  • Seating (4) (Outdoor) 2-3 people seating 40 | Page
  • Family seating Promotions & Merchandise Outdoors Employee of the Month Wall 41 | Page
  • Employees & Mascot Marketing & Promotions Merchandise Shop 42 | Page
  • Merchandise Shop Counter Bubba Gump T-shirts 43 | Page
  • Bubba Gump Knick-Knacks ‘Kids Eat Free’ & ‘Free Refill’ Promotion Picture RM50 Coupon 44 | Page
  • “Kids Eat Free’ Promotion to Attract Families Mother’s Day Promotion Products Shrimper’s Heaven Onion Rings 45 | Page
  • ‘I’m Stuffed!’ Shrimp Jambalaya 46 | Page
  • Dumb Luck Coconut Shrimp Shrimper’s Net Catch 47 | Page
  • Fried Shrimp Buffalo Wings 48 | Page
  • Mud Pie Potato Salad 49 | Page
  • Menu Cover Page Back Page Specials Menu 50 | Page
  • Chicken, Meat, Fish & Pasta Menu Promotion Menu – Front Page Promotion Menu – Back Page 51 | Page
  • Websites & Pages Official Website – Sunway Outlet Website – ‘About’ Page 52 | Page
  • Official Facebook Page Restaurant Information from Facebook Page 53 | Page
  • MANHATTAN: Interview notes 54 | Page
  • 55 | Page
  • Contact Details (Restaurant): Address - LL2.49-50 Sunway Pyramid, No.3 Jalan PJS 11/15,, 46150 Bandar Sunway, Selangor, Malaysia Contact no. - +60 3-7491 3683 Fax Email Website - 04-228 8273 mfm.sunwaypyramid@manhattanfishmarket.com www.manhattanfishmarket.com/malaysia Contact Detais (Supervisor): Contact no. - 03-74913683 Email ag33582@gmail.com 56 | Page
  • Photos Business Premises Main Entrance With Sign of Name & Logo Overview of the Main Area 57 | Page
  • One of the service crew serving a dish 58 | Page
  • Products Flamming Platter for Quarter Grilled Platter for Quarter 59 | Page
  • Grilled Pacific Dory with NZ Mus Chowder of the day - SeaFood 60 | Page
  • Fire Plate dish 61 | Page
  • Soup of The Day Iced Peach Tea and Coke 62 | Page
  • Official Websites & Pages The Manhattan Fish Market Facebook Page The Manhattan Fish Market Official Website Home Page 63 | Page
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