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    RESEARCH ASSIGNMENT RESEARCH ASSIGNMENT Document Transcript

    • SCHOOL OF ARCHITECTURE, BUILDING & DESIGN Research Unit for Modern Architecture Studies in Southeast Asia Foundation of Natural Build Environments (FNBE) English 2 [ENGL0205] STATIONARY BUSINESS - More than just pencils selling - GROUP MEMBERS: ALVIN TAN SHING YEOU (0314850) EUGENE PENG YAP SIANG (0315259) BENNY TAN SHOWIE (0315447) CHAN PIN QI (0314676) MACY KHOR SEEM LENG (0315208) LEE JO YEE (0314880)
    • Contents INTRODUCTION ......................................................................................................................... 3 INTRODUCTION OF RESEARCH PROJECT .............................................................................. 3 INTRODUCTION OF STATIONERY SHOP ............................................................................... 3 KEY SUMMARY .......................................................................................................................... 4 THE HISTORY OF THE STATIONERY BUSINESS ........................................................................... 4 DOWN-SLOPE BUSINESS ....................................................................................................... 4 BACKGROUND INFORMATION OF THE BUSINESS: .................................................................... 5 HENG CO STATIONERY SHOP ................................................................................................ 5 TEE SENG SDN BHD ............................................................................................................... 6 VISION ART ............................................................................................................................ 7 COMPARATIVE ANALYSIS OF THE BUSINESSES’ COMPETITIVE TRAITS ..................................... 7 VISION ART ............................................................................................................................ 7 TEE SENG SDN BHD ............................................................................................................... 8 HENG CO STATIONERY SHOP ................................................................................................ 9 CONCLUSION ....................................................................................................................... 10 RECOMMENDATION ................................................................................................................ 11 VISION ART .......................................................................................................................... 11 TEE SENG SDN BHD ............................................................................................................. 11 HENG CO STATIONERY SHOP .............................................................................................. 12 BIBLIOGRAPHY .............................................................................Error! Bookmark not defined. APPENDICES............................................................................................................................. 13 APPENDICES 1 : PHOTO ...................................................................................................... 13 VISION ART ...................................................................................................................... 13 TEE SENG ......................................................................................................................... 17 HENG CO STATIONERY SHOP ........................................................................................... 20 APPENDICES 2: INTERVIEW QUESTIONS AND ANSWERS .................................................... 26 Stationery Business: more than pencils selling 2|Page
    • INTRODUCTION INTRODUCTION OF RESEARCH PROJECT The main focus of this assignment was to compare the similarities and contrasting differences of three specific business . We will be doing a research on stationery shop ,focusing on three very-owned stationary shop in Subang Jaya, Kuala Lumpur which are Vision Art & Stationery shop , Tee Seng Sdn Bhd and PJS 7 Stationary shop . This aim of this research project is to compare the alter business strategies used by different owners respectively. We will mainly enquire about their history and the differences of how the business has been operating between now and then. (Home: Categories: Education and Communications :Research and Review, 2014) INTRODUCTION OF STATIONERY SHOP Stationery shop is a place where you can find a large range pens, paper, envelopes , ink toners and other supplies for home or office .Stationery has historically pertained to a wide gamut of materials: paper and office supplies, writing implements, greeting cards, glue, pencil cases and other similar items. The usage and marketing of stationery is a niche industry that is increasingly threatened by electronic media. As stationery is intrinsically linked to paper and the process of written, personalized communication, many techniques of stationery manufacture are employed, of varying desirability and expense. (Hannon, 2013) Stationery Business: more than pencils selling 3|Page
    • KEY SUMMARY THE HISTORY OF THE STATIONERY BUSINESS DOWN-SLOPE BUSINESS Nowadays, the stationary manufacture sector is filled with 60% from China 30% from Japan & 10% from others like Malaysia, Thailand, and etc. (Sheng, 2013) Before 1980s, global market was just local manufacture and not much of international trade. In the decade of the 1990’s the world is entering a period of economic prosperity and China as well. Due to low labor cost and higher productivity, China increase production from small portion to at least 10-15% raise per year. (Reportlinker : Customer Goods and Service) The market now is divided into two main sections, high quality product by advance country & lower quality product by growing economy. Malaysia’s manufacturer was eliminated since 2000’s, because of higher labor cost and only the higher quality manufacturer survived. Stepping into internet era, the retailing market competition increases gradually into free trade with the growth of online trader. Retail success is no longer all about physical stores, due to the increases in retailers now offering online store interfaces for consumers. With the rapid growth of online shopping, comes a wealth of new market footprint coverage opportunities for online dealer that can offshore market demands and service requirements, like more specific product that can only be found through online market In a nut shell, local stationary industry face two major challenges since 1990’s, which are global competitors and flexibility of online dealers. Stationery Business: more than pencils selling 4|Page
    • BACKGROUND INFORMATION OF THE BUSINESS: Before we go for the interview, we have done some background research about this three stationery shops through various channel such as on-site observation, books, verbal surveys from the residents and etc. Below are our findings. HENG CO STATIONERY SHOP The first shop is an old traditional stationery shop situated at Jalan PJS 7/15 known as Heng Co stationery shop. It is a 6062 ft small shop below the residential flats and operated from morning 11am to 7pm evening. At the entrance, there are some toy vending machines, that kind where you slot in coins in exchange for a mysterious toy wrapped in a plastic ball-like casing and also a big ice cream machines there. For a moment, you will most probably feel like you have traveled back in time because of these vintage furniture. Furthermore, most of the furniture such as the book shelves, racks, bamboo chairs, tables and wardrobes were handmade by the owner’s father and has a very high sentimental value. The shop is not occupied with any high technology electronics appliances but just a traditional ceiling fan in a shabby condition. Although the products are kept inside the glass-shielded counter, it is not hard to notice some have covered with dust and even yellowed with age. After some conversation between the owner, Mrs.Chang Lin Lee and our group members who are Benny Tan and Lee Jo Yee, we have learned that the shop not only sell stationery but provide basic sewing service too. Mrs. Chang The shop sold hardware products previously but slowly has stopped because lack of demand in this particular area. She serves around 10 customers per day with most of them are students from the nearby primary school and some elderly residents nearby. Speaking of the history, the business has started back to 1960 when it was situated at Sungai Wang Tin Ming upon the request from the British rulers. The local ruler of that time was an English man and has asked the owner’s mother, Mrs. Khor Sai Ngoh to open a stationery shop for the convenience of the villagers at the area. With the fear being punished, her family has accepted the model provided by the British and opened a shop obediently. Mrs.Khor passed away after 3 years the shop was established and has her husband and 18 years old Mrs Chang Lin Lee to continue the business. The business grew rapidly and earn a great amount of profit back then until 1990s when they were forced to move to PJS 7 due to the demolition of the area in order to build more double-story houses. (TN), 1966) Stationery Business: more than pencils selling 5|Page
    • TEE SENG SDN BHD The second shop is situated at a strategic location which is situated inside Taylor’s University Lakeside Campus, the Tee Seng Sdn Bhd. From the appearance, the shop looks small and seems to have nothing to offer other than some basic pens and papers; you will be fooled if you believe so. Upon stepping inside the shop, you will be welcomed by the owner, a 55 years old friendly looking uncle, Mr. Loo Tee Seng. With another 2 employees a girl from South-Africa and a local boy, he sells stationery and provides Photostat, printing and binding services to their main customer source which is the Taylor’s University community. They serve around 50 customers per day with most of them are students, lecturers, school officers and clerks. The shop is fully air-conditioned and the products are neatly arranged in shelves or hung on racks. The uncle keeps an eye on the hygiene of the store all the time and makes sure that his customers queue up for the printing service during peak hours. From the interview between our group members Macy Khor and Chan Pin Qi and Mr.Loo, we have learned that before the shop was established together with Taylor’s University Lakeside Campus in 2011, the owner Mr.Loo worked with his brother in a stationary shop located at KL Jalan Ampang in 1996. Back then, it was a huge business where their customers are mostly large cooperation companies. They have signed contracts and have great business cooperation with those big cooperations. He shared his experience by telling us the importance of strategy location of the business and also the specialty of the business you provide to the customer. Their specialty field was providing binding services like binding of books or magazine as there were a lot of engineering firm around their location back then. After working with his brother for more than 20 years, he decided to retire from his work and find a more relaxing work to pass his time as his daughter and son were all grown up .In 2010, he meet his old friend, Datuk Loy, the owner of the Taylor’s University and was notified that there was shop lots in the commercial block available for him to start his stationary shop business. Initially, the business did not go very well as most of the students were not relocated in this new campus (Taylor Lakeside University campus). However, for the next 2 years, the business has showed great improvement because of the increase in the student population along with the improvement in Malaysia economics. (Country Intelligence: Report: Malaysia., 2013) Stationery Business: more than pencils selling 6|Page
    • VISION ART Alvin Tan and Eugene Peng have been assigned to interview another well-known stationery shop known as “Vision Art” which is situated at 3, Jalan PJS 11/28,Bandar Sunway, 46150, Petaling Jaya is another favorite spot for art students around Bandar Sunway. Other than the Singaporean investor Mr. James, the founders and also the owner of the shop Mr. Franky and Mrs. Winny Hiau welcome around 150 customers everyday with most of them from Sunway University, The One Academy and Taylor’s University. With only 3 Malay female employees, they sell mainly stationery and vast options of art materials and provide Photostat and binding service. There are many choices The one and only Vision Art has most of their products up to date and they are nicely arranged on the book shelves and situated in a specific area so that students may help themselves in searching their desired materials. The shop is also fully air-conditioned and occupied with close-circuit televisions (CCTV) to ensure the security in the shop. After having a quick chat with Mr.Franky, we have learned that the history of the business can be traced back to the period from 1994 to 1997 when they had been introduced to a stationery supplier and decided to start a small shop in PJS state with the target customer are the students of Saito Academic of Art College. Starting with a very small model and without much expectation, the business grew and earned more profit than they have expected and eventually require a bigger venue. They moved to Bandar Sunway at 1998 and the number of customers has increased since from previously 80% students vs 20% outsiders to now 50% students vs 50% outsiders. Outsiders are some office workers, professional artists, photographers, lecturers and so on. COMPARATIVE ANALYSIS OF THE BUSINESSES’ COMPETITIVE TRAITS As fellow architecture students, we understand the importance of stationeries and various art tools in our pursuit of our career. In this research assignment, we made these stationary shops as our interview subjects. We analyze the business’s competitive traits of these shops, which are namely Vision Art, Heng Co and Tee Seng. VISION ART Out of these three shops, Vision Art has 20 years history and thus more experienced in this particular field. As the business go on, the goods and services provided diversified as well. The shops has started giving printing and Stationery Business: more than pencils selling 7|Page
    • binding service but these services face furious competition as more and more professional printing shops emerge in vicinity. They can only depend on the cheaper price and faster speed as they stand no chance in the battle of quality against these shops. As per their printing and binding service, they applied the same strategy on their goods as well. They lower the price of their goods according to the customers’ feedbacks and demands. Their strategy is to attract customers with their cheaper price vast diversity of goods. Most of their customers are art students from nearby universities and working designers. This is the one of the immediate causes of its goods diversification towards art tools. This specialization is one of its advantages as these goods are not very common. Another advantage is the well-trained employees. They are familiar with all the goods and their purpose and other detailed information. They provide advice and left a good impression in the customers that are unfamiliar with these goods. As such, the shop is frequently promoted through words from others and gained a strong reputation, especially in the nearby universities. However, these art tools are also rather expensive, thus it is hard to just rely on these art tools alone. On the other hand, the more common goods such as A4 papers and pens face more competition from many others shops around area SS 15. Another major disadvantage is the location of the shop. There are very few numbers of parking lots around the shop so it is really difficult for people to stop by and stay for a long time. TEE SENG SDN BHD Comparatively, Tee Seng Sdn Bhd has the shortest history among the three shops. However, the owner has experience running a stationary shop before opening this shop in Taylor’s University lakeside Campus. Since this shop was establish as pass time business, the owner does really care about the present competition and hence no strategy is used. The pricing is higher than the stationary shops outside of the campus because of the higher rental. The shop also provides printing and binding service. It faces competition from other printing and binding service within the campus and Stationery Business: more than pencils selling 8|Page
    • outside of the campus. Its printing service is especially unprofitable because of the good printing service provided by the library. It is more student-friendly and better in quality as well with same price. The variety of the goods in the shop is also very limited that students have to go outside to get required art tools. This is most likely due to the small space of the shop that inhibited the shop’s further development. The shop’s only advantage against other stationary shops is its location which is within the university compound, making it more convenient for the students as no transportation is needed. The numbers of students in the university is also steadily increasing. HENG CO STATIONERY SHOP Heng Co has the longest history among the three shops but it can be categorized as sunset business at that area. The owner is the 2nd generation of the business and wish to continue the business as pass time business. Therefore, there is no strategy to use at the shop and the price is lower than the other stationary shop because it doesn’t have to pay the rental fee. It doesn’t have printing and binding service as other shop but it provided sewing service to the old customer. One of its advantages is the short walking distance to the residents in the area since it situated in the residential area. The main source of customer is student from primary and secondary school. This is one of the main causes of the cheaper price goods. Another advantage is the cheaper price of goods, the goods are generally cheaper than other stationary shops at the same business area. For example, the manila card it sells with RM 0.60 but the other shop sells RM 1.00. Since their profit is less than RM50 per day, the owner is selling breakfast in the morning market before the stationary shop start operation. I think this is the strategy for the business and owner herself. Previously, the stall is situated in front of the stationary shop, so it brings the customer to the shop but it has moved to the morning market nearby after getting complain of blocking the parking places. Stationery Business: more than pencils selling 9|Page
    • CONCLUSION (Blais, 2012) In conclusion, the Vision Art is the most successful among the three stationary shops because of its diversity of goods and cheaper price whereas Tee Seng Sdn Bhd has highest pricing, albeit, the nearest and most convenient but Heng Co. stationary shop has lowest pricing, near and convenient to the resident around. Other than Heng Co. stationary shop, Vision Art and Tee Send Sdn Bhd both manage to get an annual revenue figure of more than RM 1,000,000. With just the advantage of location alone, Tee Seng Sdn Bhd was able get on par with Vision Art. Tee Seng Sdn Bhd with only 3 years old is also very much younger than Vision Art which is 20 years old. Furthermore, Heng Co. stationary shop is 54 years old but its revenue isn’t much if compare to them. The effect of location of a business is clearly shown in this scenario. Although Vision Art and Heng Co are not placed in a university, but Vision Art has a pretty good location. It is located in the vicinity of Sunway Pyramid Shopping Mall and a residential area. Heng Co is located near the Pangsapuri Mutiara Perdana in PJS 7. Vision Art possesses higher exposure to the public compare to Tee Seng Sdn Bhd which is confined in the university and Heng Co which is confined in the residential area. Outsiders are less likely to travel to a university compound to purchase stationeries. Both of Vision Art and Tee Seng Sdn Bhd adopted the same strategy with their pricing but Tee Seng Sdn Bhd has got a slight disadvantage due to its higher rental price. However, Heng Co has the cheapest pricing due to the shop is owned by itself. Nonetheless, Vision Art has more diversified and specialized goods that attract students with more advanced demands. Therefore, it has a wider range of customers which allows it to triumph over others easily. They are not just limited to the students of one university or primary and secondary school as Tee Seng Sdn Bhd and Heng Co , instead they are consisted of students from different universities and many other sources. All three of the stationary shops basically face similar competitors but the number of strong competitors is very negligible. The market has a nature Stationery Business: more than pencils selling 10 | P a g e
    • of oligopoly. All three of the shops entered this market with different methods. The owner of Vision Art has established relationship with good suppliers while the owner of Tee Seng Sdn Bhd has prior working experience. These are just the basic criteria to enter the market. Even with all the criteria fulfilled, it is still very hard to enter the market due to its oligopoly nature. Unless it can establish a good reputation among the local communities and insure a good amount of customers in a short time, the business will last for long. RECOMMENDATION (Bharadwaj, Anandhi ; El Sawy, Omar A ; Pavlou, Paul A. ; Venkatraman, N., 2013) VISION ART Limited space in Vision Art has become the biggest problem in running the business. It is always filled up with customer but will never get enough space to move around. Imagine when people carrying the materials that are large in scale moving around the shop. Besides, stocks are piled up until the ceiling. It will be a threat when people walking by in the risk of goods falling down. Therefore, larger space is needed to fit in the customers and the stocks existed. Other than larger space is recommended, student price discount is also a preferable way of running a stationery business in the area of various university existed. Student who have zero income and still gaining financial support from their parents will find it a burden for monthly expense especially architecture or design school students which need variety of materials from different price range. Therefor, price should be lower down when comes to students. (NIEMAND, 2013) TEE SENG SDN BHD Tee Seng is now encountering a threat, which then affect its business performance, which is the rental. The rental here has reached its high peak until RM 4000 per month excluding the electricity and maintenance fee, therefore, the pricing will be a bit higher compare to others which then lose his customer. Price should be a standard price and figure out another way of solving the rental problem. The goods in Tee Seng are founded not sufficient when comes to modeling. More variety of goods is recommended for the shop in order to increase its profit. This will then be a preferable place for students, as no travel is needed. Stationery Business: more than pencils selling 11 | P a g e
    • HENG CO STATIONERY SHOP The maintenance of shop lot structure is recommended to improve. As shop lot has been standing for over few decades, it is already old and full of dust. Running a business should have a good impression for customers in order to attract them. That’s why it should start renovation of the shop if the business wants to be continued. If the business is not meant to continue, a promotion is needed to clear its stock out and gain back the cost of running it. Besides, the arrangement of goods being displayed is a biggest problem in attracting the customers, as it does not look like a stationery shop. People tend to ignore the shop, as it is nothing that can let them know there’s a business running inside. Moreover, old furniture like altar and the Rotan chair are recommended to be discarded from the shop as they should not be them who becoming the focus of the business instead of the stationery. If the sticks are placed in a neat way, customers can notice the goods easier, the performance increase, and yet it still has the chance of surviving in this competitive business. (Nazari & Allahyar, 2012) BIBLIOGRAPHY Bharadwaj, Anandhi ; El Sawy, Omar A ; Pavlou, Paul A. ; Venkatraman, N. (2013). DIGITAL BUSINESS STRATEGY: TOWARD A NEXT GENERATION OF INSIGHTS. TOWARD A NEXT GENERATION OF INSIGHTS. , 471-482. Blais, S. (2012). Business Analysis : Best Practices for Success. Hoboken, New Jersey: Wiley Press . (2013). Country Intelligence: Report: Malaysia. Malaysia: Malaysia Country Monitor. Hannon, K. (2013, October ). Money. The Write Stuff , p. p29. Home: Categories: Education and Communications :Research and Review. (2014, February 10th). Retrieved February 10th, 2014, from www.wikihow.com: http://www.wikihow.com/Write-a-Research-Paper Nazari, A., & Allahyar, N. (2012). Grammar Teaching Revisited. EFL Teachers between Grammar Abstinence and Formal Grammar Teaching , 16. NIEMAND, T. (2013). 7 DEADLY SINS OF BUSINESS OWNERS. p49-49. Stationery Business: more than pencils selling 12 | P a g e
    • Reportlinker : Customer Goods and Service. (n.d.). Retrieved February 2nd , 2014, from Reportlinker web site: http://www.reportlinker.com/ci02159/Office-Supply-and-Stationery.html Sheng, L. P. (2013, December 8th). Several Trends Affect Future Stationery Development. Retrieved February 9th, 2014, from http://www.made-inchina.com/: http://resources.made-in-china.com/article/industrytrends/amYQdItOTnif/Several-Trends-Affect-Future-StationeryDevelopment/ TN), J. L. (1966). Small business problems in urban areas. Government Document. APPENDICES APPENDICES 1 : PHOTO VISION ART Figure 1: Front view of Vision Art stationery shop outside Sunway Pyramid shopping complex. Stationery Business: more than pencils selling Figure 2: Picture of Alvin and one of the owners of Vision Art, Mr. Franky. 13 | P a g e
    • Figure 3: Picture of worker serving customer and recommending the product which suitable for the customer. Figure 4: Rack of putting variety of papers at the end of the shop. Stationery Business: more than pencils selling 14 | P a g e
    • Figure 5: The other side of Vision Art, which rented to a telecommunication shop. Figure 6: rack of Kure pen in variety of colors. Stationery Business: more than pencils selling 15 | P a g e
    • Figure 7 Kure pens and the paper for customers to try out the ink. Stationery Business: more than pencils selling 16 | P a g e
    • TEE SENG Figure 8: Front view of Tee Seng stationery shop. Figure 13: Picture of Macy and the owner, Tee Seng. Stationery Business: more than pencils selling 17 | P a g e
    • Figure 9: rack of pen being sold Stationery Business: which acts as pencils selling Figure 10: Little corner, more than counter. 18 | P a g e
    • Figure 11: Two binding machine in the shop. Figure 12: Variety of tape being hanged for easier approach. Stationery Business: more than pencils selling 19 | P a g e
    • HENG CO STATIONERY SHOP Figure 14: Side view of Pjs 7 shop. Figure 15: Owner of the Pjs shop. Stationery Business: more than pencils selling 20 | P a g e
    • Stationery Business: more than pencils selling 21 | P a g e
    • Figure 16: Old radio being displayed at the corner of the shop. Figure 17: Pictures of sewing machine. Stationery Business: more than pencils selling 22 | P a g e
    • Figure 18: Old cupboards which fill up the stock. Figure 19: Place where act as guardian for their business. Stationery Business: more than pencils selling Figure 20: cupboard of stocking products, which lack of sale. 23 | P a g e
    • Figure 20: Old stuff being stacked in a messy way. Figure 22: Fridge selling ice cream. Figure 21: Toy machine outside the shop to attract children. Figure 23: Accessories of daily stuff also being sold instead of stationery such as battery. Stationery Business: more than pencils selling 24 | P a g e
    • Figure 24: Picture of Benny and the owner. Figure 25: Picture of Joyee and the owner. Stationery Business: more than pencils selling 25 | P a g e
    • APPENDICES 2: INTERVIEW QUESTIONS AND ANSWERS NAME OF THE SHOP : VISION ART DATE : 3 /1/2014 TIME : 1.00 p.m to 2.30 p.m INTERVIEWER : Alvin Tan & Eugene Peng Front view of Vision Art stationery shop outside Sunway Pyramid shopping complex. 1. When was the business founded and who are the key founders? - Started since 1994, with 3 founders, Franky 52 years old, Winny 46 years old, James 57 years old from Singapore. - James as the main investor, he invest the money since 20 years ago and never invest anymore, just share the profit yearly. Stationery Business: more than pencils selling 26 | P a g e
    • 2. What prompted the founders to start this business? - Reason start up business, mainly to find a business which can make money, and know where to find the source. (friend introduce them a stationary supplier) 3. What are your main products? - Main product are material & stationary, mainly retailing and servicing (Photostat & binding) 4. Who are your customers? - Average of 150 customer per day 5. Can you provide us a brief history of your business and its most recent developments? - Started with very small model with a small shop in PJS state during 1994-1997 because they targeted Saito Academic of Art College student. But move to Bandar Sunway at 1998 because they aim for a better market, The One Academy College student. Result is better and profit of business increase and bigger model. - The customer source increase especially outsider. From 80% student vs 20%outsider increase to 50% student vs 50% outsider. Average of 50 customer increase to 150 customer per day. 6. Is the business constantly facing strong competition from other competitors? What strategies have they used to compete with you? -Price setting is mainly by reflection of the product sales, and also customer feedback, will adjust the pricing once the certain product sales is not good (not always happen, as long as reasonable price setting strategy). Price setting is not depending on competitors. 7. How do you compete with your competitors i.e. what strategies do you employ to divert customers away from your competitors? - Strategy to stock their stock, once the product finish, boss will call the supplier, not really have fix period like order once a month, or order twice a month, its all depends on how much stock left. Will stock more if better selling product. Supplier will introduce them new product, hence no research needed. - Main competitors are from nearby and online shops, nearby – SS15 stationary shop & Shah Alam section 2 stationary shop. Stationery Business: more than pencils selling 27 | P a g e
    • - But they don’t do much of market survey and research, never visit any stationary shop for special purpose. 8. Are your pricing decisions strongly affected by your competitors? - Strategy to stock their stock, once the product finish, boss will call the supplier, not really have fix period like order once a month, or order twice a month, its all depends on how much stock left. Will stock more if better selling product. Supplier will introduce them new product, hence no research needed. Stationery Business: more than pencils selling 28 | P a g e
    • NAME OF THE SHOP : TEE SENG STATIONERY SHOP ( Taylor’s commercial block ) DATE : 10 /1/2014 TIME : 3.00 p.m to 5.15 p.m INTERVIEWER : Khor Seem Leng & Pinky Chan Front view of Tee Seng stationery shop. Stationery Business: more than pencils selling 29 | P a g e
    • 1. Can you provide us a brief history of your business and its most recent developments? - Loo Tee Seng ,the founder of this stationary shop graduated from one of the university in UK in 1985 with a degree in economics .After he graduated ,he travel for a few years and studying about the psychology of human beings .He learned about the attitude of human being ,get to know more about the mentality of society .He then work with his brother in a stationary shop located at KL Jalan Ampang in 1996 .Back then ,it was a huge business where their customer are mostly large cooperation company. They also did have a lot of contract with big cooperation company ,running a big business back then. He also did stress on the importance of strategy location of the business and also the specialty of the business you provide to the customer .Their specialty field was providing binding services like binding of books or magazine as there were a lot of engineering firm around their location back then .After working with his brother for more than 20 years ,he decided to retire from his work and find a more relaxing work to pass his time as his daughter and son were all grown up .In 2010 ,he meet his old friend ,Datuk Loy that is going to launch a new Taylor campus that is Taylor University Lakeside campus .With the connection he have with Datuk Loy ,he rented one of the shop lot in the commercial block to start his stationary shop business .That is where his business start to operate when Taylor’s university started three years ago. The initial year of the business did not really progress well as not all the students are relocated in this new campus ( Taylor Lakeside University campus ).However, for the next 2 years ,the progress of the business were establishing because of the population of students start to increase but then competitors start to invade in .The business were establishing quite slowly due to the space of the shop and the increase rate of competitors. 2. Do you have many competitors? Who are they? Who are your top 3 competitors? - Yes ,the shop besides his shop selling a few kind of stationary products ,the library and the shop near Student life center .All of them are doing quite similar business such as providing binding and printing services . Stationery Business: more than pencils selling 30 | P a g e
    • 3. Is the business constantly facing strong competition from other competitors? What strategies have they used to compete with you? - Yes , lower pricing ,conveniency ( library –improve their facilities by having dropbox for smartphones ) 4. How much capital is required to start this business? What, if any, specialized field of knowledge do you need to run this business? - RM 150,000. According to Mr. Loo, do not need any specific knowledge to run his business. Only thing need to know about is where to get the suppliers and some basic knowledge to the machine being used. Previously, in his young age, he had been practicing the binding book service when he was operating his old stationary shop beside KLCC where there’s lots of engineering firm at the area. Besides, knowledge of managing human resources is very essential in running this business. Worker being trained and left the shop happened very common in Tee Sheng shop. As it is a less challenging job, people tend to leave while they have gained certain basic knowledge on how to manage the printing machine. 5. Generally, do you feel it is easy or hard to enter this market? Why? - It is hard to enter this market because the competition out there is much more stronger than imagined. One cannot stand still in this business if they are not competitive enough. 6. How do you compete with your competitors i.e. what strategies do you employ to divert customers away from your competitors? - Actually, in the state of just want to settle down and passing time through retirement, there are no strategies being used to divert customers away from the competitors. Customers have the right to choose where they prefer. However, because of its location is at the commercial block, people tend to buy things there. Therefore, the location will be their only strategy to attract people. However, Stationery Business: more than pencils selling 31 | P a g e
    • some who are studying at the academic block will find it inconvenient to buy things there. 7. How often do you release a new product (this assumes the business sells differentiated products)? - Once or twice a year will introduce new products. He tried his best in introducing variety of products in order to increase the business performance and keep them updated. 8. Are your pricing decisions strongly affected by your competitors? The competitors do not affect the pricing decision here. It is the rental who affect. The price will be higher compare to the competitors as cost used for the rental and maintenance of machine is high. As the owner does not care about how much he earned, it is oaky for students to choose others rather than him. Stationery Business: more than pencils selling 32 | P a g e
    • NAME OF THE SHOP : HENG CO STATIONERY SHOP DATE : 8 /1/2014 TIME : 1.00 p.m to 2.30 p.m INTERVIEWER : Benny Tan & Lee Jo Yee Side view of Heng Co stationery shop . 1. When was the business founded and who are the key founders? - Started since 1960, with founders, Khor Sai Ngoh - British boss of tin mining as the main sponsor, he sponsor the money for the shop opening to the founder. 2. What prompted the founders to start this business? - Reason start up business, mainly is asked by the British boss of tin mining to give benefit, advantage and convenient to the villagers at that time. Stationery Business: more than pencils selling 33 | P a g e
    • 3. What are your main products? - Main products are thread, stationary, rope, hardware (stop selling) 4. Who are your customers? - Mainly are student from primary and secondary school nearby the shop in the residential area. 5. Can you provide us a brief history of your business and its most recent developments? - 1960s, Khor Sai Ngoh started business at sungai wang tin mining by the sponsor of British boss of the tin mining. The target customer is the villagers from the area. Her husband and son continue her business after 3 years. 1990s, moved to Pjs 7 because the government want to demolish the previous place to build double story houses. The business revenue decrease day by day and now only maintain the shop operation, not for earning. - The customer source is 90% come from the nearby primary and secondary school due to the cheap pricing, 10% come from the resident nearby. 6. Is the business constantly facing strong competition from other competitors? What strategies have they used to compete with you? -No, price setting is mainly cheaper compare to others shop since the owner just want to maintain the shop - Main competitors are from a nearby stationary shop. 7. Are your pricing decisions strongly affected by your competitors? - Not really, just maintain the cheap and reasonable pricing Stationery Business: more than pencils selling 34 | P a g e
    • APPENDICES 3: THE DIFFERENCES AND SIMILARITIES BETWEEN THE 3 BUSINESS. VISION ART SHOPS TEE SENG SDN BHD HENG CO. AREAS PRICING Reasonable Highest Lowest STRATEGY Yes No No LOCATION Excellent Good Bad GOODS VARIETY Diversified Limited Limited RENTAL PRICE Reasonable High None NUMBER OF 3 2 0 Highest High Lowest EMPLOYEES ANNUAL REVENUE Stationery Business: more than pencils selling 35 | P a g e