Report writing

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A COMPARATIVE ANALYSIS OF 2 BUSINESSES OF SIMILAR INDUSTRY IN DIFFERENT
GEOGRAPHICAL LOCATIONS|FNBE ELG30605

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Foundation of Natural Build Environments (FNBE)
English 2 (ELG30605)
Assignment: A Comparative Analysis
of 2 Businesses of Similar Industry in
Different Geographical Locations
Lecturer: GopiGhantan Mylvaganam
Group Member:
Jiji Ng 0904Y72861
Wong Yun Teng 0323454
Tan Tee Jane 0323640
Janson Chen 0323047
Ho Hong Lok 0323949
Pau Jin Wei 0323840
Jason Goh Kok Wei 0323392
Mashruk Asad 0322188

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Table of Contents
Key Summary ………………………………………………………………………………6
History of Coffee Beans and Its Trading in Malaysia ……………………………………...7
Brief Description of the Businesses……………………………………………………..8 – 10
1. Berjaya Starbucks Coffee Company Sendirian Berhad ………………………...8
a. Main Products and Services ………………………………………………...8
b. Business Foundation ………………………………………………………..8
c. Business History ……………………………………………………………8
d. Core Success ………………………………………………………………..9
e. Managerial Success ………………………………………………………....9
2. C U Latte by Cheong Foh ………………………………………………………9
a. Main Products and Services ………………………………………………...9
b. Business Foundation ………………………………………………………..9
c. Business History …………………………………………………………...10
d. Core Success ……………………………………………………………….10
Business Competition …………………………………………………………………11 - 12
1. Number of Competitors and Brief Bios of Top 3 Competitors ………………...11
a. Berjaya Starbucks Coffee Company Sendirian Berhad ………………...11
b. C U Latte by Cheong Foh ………………………………………………11
2. Business Competitiveness and Strategies (Direct Competitors)
a. Berjaya Starbucks Coffee Company Sendirian Berhad …………....11 - 12
b. C U Latte by Cheong Foh ………………………………………….……12
Market’s Direction …………………………………………………………………......13 - 14
1. New Businesses Obstacles and Alternatives ……………………………………13
a. Berjaya Starbucks Coffee Company Sendirian Berhad ………………... 13
b. C U Latte by Cheong Foh ……………………………………………… 13
2. Nature of Market: Current Market Economy, Consumers and Suppliers
Collaboration ……………………………………………………………….……13
a. Berjaya Starbucks Coffee Company Sendirian Berhad ………….....13 - 14
b. C U Latte by Cheong Foh ………………………………………………-14

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Similarities and Differences …………………………………………………….......…..15 - 18
1. Summarization Table of Similarities and Differences between Two Businesses .15
2. Exposition Context: Similarities and Differences ……………………………….16
a. Globalization …………………………………………………………….16
i. Berjaya Starbucks Coffee Company Sendirian Berhad ………....16
ii. C U Latte by Cheong Foh ……………………………………….16
b. Café Passion and Cultures …………………………………………….…16
i. Berjaya Starbucks Coffee Company Sendirian Berhad …………16
c. Food Cultures and Their Motives ………………………………………..18
i. Berjaya Starbucks Coffee Company Sendirian Berhad …………18
Commercial Success ……………………………………………………………………...…19
Recommendations (Competitiveness) ………………………………………………………19
1. Berjaya Starbucks Coffee Company Sendirian Berhad …………........................19
2. C U Latte by Cheong Foh ……………………………………………………….19
Appendices (Interview Records) …………………………………………………….…20 – 26
1. Berjaya Starbucks Coffee Company Sendirian Berhad ………….................20 - 24
2. C U Latte by Cheong Foh ………………………………………………..…24 - 29
Minutes of Meeting …………..……………………………………………………………...30
References …………………………………………………………………………….......…31

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Key Summary
Café is derived from society’s lifestyles and extended from Europe in the midst of
17th Century. To investigate the inequality between international and local café, the
trustworthy Starbucks in Malaysia and business-friendly Cheong Foh are chosen for the
research about the formation, development and success of café in Malaysia. Berjaya
Starbucks has comparably shown the prestige of company’s mobilisation, affiliation and
administration, and C U Latte by Cheong Foh is persevere in tradition, locality and ethical
development. In conclusion, these café businesses achieved a convergence of similarities and
competitive differences that yields different markets by using adaptive strategies in their
business history in different locations and phases of modernisation.

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History of Coffee Beans and Its Trading in Malaysia
Coffee beans was initially founded in Ethiopia in the midst of 11th Century and
rapidly spread to Yemen, Istanbul, Venice, Marseilles, Paris, Vienna, London, Holland,
Germany and America. In the midst of 1800s, British colonialists invested coffee in
Malaysia; later, the coffee is cultivated by locals and they produced own coffee products.

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Brief Description of the Businesses
Berjaya Starbucks Coffee Company Sendirian Berhad
The foremost café established as Berjaya Starbucks Coffee Company Sendirian
Berhad in range of 163 outlets, with an outlet located in Taylor’s University Lakeside
Campus. The number of employees for this outlet is 10 persons. The estimated number of
customers per daily ranges from 400 to 500 persons.
Main Products and Services
Berjaya Starbucks sell coffees according to Starbucks Roast Spectrum, which coffees
are assessed as Blonde Roast, Medium Roast and Dark Roast; consequently, the inimitable
control of temperature and time resulted in their peak of scent, acerbity, form and savour.
This company delivered customized grinding of coffee beans as well as Malaysia Starbucks
Card services. The cards aim to pertain customers’ loyalty through membership which
enhance their Starbucks experiences and reward their trust and passion for Starbucks.
Business Foundation
The founder of Starbucks is the store owner in Seattle’s historic Pike Place Market.
Starbucks in Malaysia is founded by Berjaya Starbucks Coffee Company Sendirian Berhad,
and Taylor’s University Lakeside Campus’s outlet is operated since 2010. They aimed to
provide products and services to the university students with their good employee
engagement, performance cultures and leadership.
Business History
Berjaya Starbucks undertook several major developments in form of accomplishment
and changes in the past five years. In 2011, Starbucks Malaysia advocated Starbucks Card.
Starbucks VIA Ready Brew is launched upon its discovery. In 2012, Starbucks has more than
17,600 stores and is valued at $35.6 billion. In 2013, Starbucks instigated Starbucks
Connecting Communities Project. In 2014, Starbucks generated old plan by inaugurated
Starbucks Card Mobile Application. Furthermore, Starbucks received the HR Best Practices
Gold Award, honoured by Malaysia Institute of Human Resources Management (MIHRM).
Moreover, Starbucks established the Community Computer Centre and initiated the Global
Month of Service, and they have contributed to 38 community service projects and

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accomplished 27,437 community services hours. In 2015, Starbucks was entitled “Best of the
Best” in Aon Hewitt Employers-Malaysia 2015 Awards.
Core Success
The core success of Starbucks is developed into a gigantic worldwide coffee company
which modelled market’s innovation. Their leadership in coffee specialty build business
opportunities lead by customized luxuries, dynamic retailing demography, coffee lifestyle
influences, provident leadership and interactive organizational infrastructures. Their empathy
on customers has create critical success of consistency, ingenuity and brand awareness.
Managerial Success
Berjaya Starbucks success comply with their Business Ethics and Compliance
program which safeguards outlet cultures and notoriety by ethical decision-making via
informational measures, training, investigation and communication channels. This essentially
resolved employee relation issues which is the key of potential success of the outlet.
Workplace diversity is effectively measured by headquarter to prioritize in human connection
and engagement, fairness and justice, and ease of use and barrier free. The friendliness of
outlet services is safeguarded by headquarters’ expectation with employees’ unceasing
kinship, tolerance and humanity.
C U Latte by Cheong Foh
The comparative café is C U Latte established by Cheong Foh which situated at BBK
Port Tech Tower. C U Latte is the first outlet launched by Cheong Foh in 2015. The number
of employees in this outlet is 10 persons. This company’s estimated number of customers is
in the range of 50 persons.
Main Products and Services
C U Latte sell Klang coffee species Liberica. Liberica is the only coffee commodity
historically splendid in Malaysia, with properties of lessen flavour, founders of coffeehouse
in Malaysia conduct adds-in roasting method with barley, caramel and butter. This outlet also
offered foreign coffee series from global bean belt. Their main services is customized
brewing services for coffee beans.
Business Foundation

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The founder of C U Latte by Cheong Foh is Cheong Yoke Lee, grandfather of current
coffeehouse owner. Cheong Foh is established in 1955, ranging about 60 years and C U Latte
is operated since 2015. Cheong Foh is inaugurated because of his grandfather’s family
livelihood in Malaysia since his migration from China. C U Latte is operated to meet new
demands and emerged into competitive service markets in terms of the old coffeehouse
expansion after 60 years of traditional management of local coffeehouse.
Business History
The operation of a contemporary coffeehouse, C U Latte is the prior development of a
traditional-founded coffeehouse in Malaysia. This culturally westernised and culinary
globalized coffeehouse fulfilled the customers’ demand according to the epoch of
modernization. In several years ago, Cheong Foh coffeehouse achieved international fame as
it became the primary selection for foreigner’s Klang tour according to the shop listing of
Selangor district governance.
Core Success
Cheong Foh’s core success is acting as an important, unique, supportive, innovative
and persisting coffee entrepreneurship in preserving the locality, traditional quality,
customers’ delight, commitment and healthiness in the preferences and distribution of
trustworthy coffees.

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Business Competition
Number of Competitors and Brief Bios of Top 3 Competitors
Berjaya Starbucks has more than 10 regional competitors in Taylor’s University
Lakeside Campus. The direct regional competitor is Coffee Bean and Tea Leaf, their products
and services are ice-blended coffees and flavoured teas, and Coffee Bean Card services.
Chatime is an indirect competitor which special in products such as customised contemporary
teas series and juices, and services such as Chatime Thirstea Card services, periodical
promotions and organised product’s delivery. OldTown White Coffee is an indirect
competitor that exclusive in products and services such as white coffee series, food in classic
noodles, rice and western gourmet series, and periodical promotions.
C U Latte by Cheong Foh has more than 50 regional competitors in the region of
Bandar Baru Klang. The direct regional competitors in Klang are the recent emergence of
China expansion’s coffeehouses which brought an inevitable impact on their local coffee
businesses. These competitors such as China’s expanded hotels in Computer Station had a
good success, fame, qualitative coffee processing and China’s culturally-supported coffee-
making which provide a competitive edge of coffee demands in the same markets. OldTown
White Coffee is another indirect regional competitor of C U Latte by Cheong Foh.
Hometown Hainan Coffee is another indirect competitor regionally which unique for
homemade instant coffee, tea and combination of these flavours and prior in classic breakfast,
rice, noodles and western gourmet series.
Business Competitiveness and Strategies (Direct Competitors)
Berjaya Starbucks has a higher responsive social media presence which successfully
build customers’ certainty and trust. Comparably, Starbucks disclose their awards’
recognition which create massive boost in their reputation as compared to Coffee Bean and
Tea Leaf which were seem uncompetitive.

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Implementing strategies for secondary product’s competition, Cheong Foh provide
three trustworthy manufactured flavours of gourmet tea in terms of China’s competitive tea
commodity in the global beverage market, to relocate customer’s attention on coffee to other
beverage preferences that form a new marketing direction to patronize unsatisfied customers.
Secondly, according to the global emergence of preferences on purer and cleaner filtered
coffee, Malaysian coffeehouses are proceeding to these new era of coffee-making. Cheong
Foh predictably invested in the V60 coffee filtration in encountering customer’s desertion of
flavoured coffee. In their newly established CU Latte contemporary coffeehouse, they
dedicated to the Diedrich Coffee Roaster from United States which effectively produce
overwhelming result of roasting and customer’s coffee experiences.

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Market’s Direction
New Businesses Obstacles and Alternatives
According to Berjaya Starbucks, the new businesses of coffee lacking excellence in
coffee education, which is the core foundation for café industry and baristas expertise.
Consequently, the new establishment of coffee businesses failed to execute the innovative
core of coffee delights and personalise coffee services which strengthened their customer
experiences prior to the competitive edge of contemporary café. These new businesses can
follow the leadership of notorious coffee suppliers and partners to pursue in their further
education and gain experiences in coffee entrepreneurship with their initiatives of structuring
good reputation for them.
According to C U Latte by Cheong Foh, the main obstacles is the rising cost of coffee
beans. The extraction of coffee beans are blended with the impurities during coffee harvest
and along with the increment of prices had made many coffee businesses degrading to their
cessation. The relative amount of capital investment is prior to establish a good coffee
entrepreneurship, direction, culture and market. Workforce is a problematic sourcing for local
coffeehouse businesses, because many young adults are revenue-driven, business-motivated,
luxury-dominant, and artistically manipulative instead of philosophy-manageable, coffee-
propelling, ethical-and-cultural driven and motivated for long-term success. Coffeehouse’s
location is the resolution for every coffeehouse business failure or deprivation. Many
unexperienced coffeehouse owners had encountered massive loss or termination due to the
lacking of understanding and good schemes in terms of selecting location.
Nature of Market: Current Market Economy, Consumers and Suppliers
Collaboration
The Coffee and Farmer Equity (C.A.F.E.) Practices assured proper coffee trading and
ethical sourcing of responsibly grown coffee. They promote sustainable industry that support
farmers, such as organic farming practices and Starbucks Farmer Loan programs. They

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collaborate with Mercy Corps to create tea production with good health aids, youth
engagement and economic progression.
Cheong Foh maintain a good relationship with coffee beans supplier in Klang to
continuously discover and obtain improving coffee beans in terms of long-term trading. They
have a good business relation with informative communication and experience exchanges
that can benefit the development of local coffeehouse. Many philosophical customers have
good understanding about coffee markets and truthful passion for coffee has continuously
being supportive to the coffee business. The market economy of coffee supplies has
continuously depriving dated back to last 60 years because of the agricultural pests in coffee
plantation and largely important agricultural land is being developed into commercial land.
The coffee businesses became largely dependent on huge and continuous capital investment
to sustain quality and originality of coffee products.

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Similarities and Differences
Comparison Type Comparison Context
C U Latte by Cheong Foh Berjaya Starbucks
Similarities Supporting healthiness of food
such as calorie-free beverage,
without artificial fusion, instant
coffee disapproval, coffee’s health
awareness
Offers healthy food such as
wholesome food
Cross-cultural food Diverse and globalized food
cultures
Deliver song with caffeinated
effect
Romantic music atmosphere
Provide customers with coffee
philosophy and livelihood
acknowledgement
Provide customers with coffee
selections by means of humanistic
characters and philosophy
Differences Business direction is to achieve
ethical business in terms of
quality maintenance, cultural
contribution and good customer
services.
Business direction is regulated for a
higher responsibility, assurance and
philosophy on missionary success.
High level of professionalism in
form of prolific experiences
relating to breakfast
High level of contribution to
world’s coffee agriculture by
supporting farmers with resources
and expertise of coffee.
Coffeehouse cultures perceived
the devotion of local coffee
ancestors and coffee cultures of
trustworthy Malaysian folks
Coffeehouse cultures conjured the
ardour for high seas and
navigational beliefs of the early
coffee traders
Table 1. Summarization of similarities and differences between two businesses.

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Exposition Context: Similarities and Differences
Globalization
Starbucks aim to create visionary products out of world’s coffee agriculture by
supporting farmers with resources and expertise of coffee. The foreign headquarter affirmed
every outlet as essential parts of Starbucks neighbourhood, which the outlet gain managerial
and leadership experiences in a bonding network of partners, customers and community
through their contribution channels. Subsequently, they look and act on behalf of Starbucks
beyond their boundary, with a higher responsibility, assurance and philosophy on missionary
success.
CU Latte also actively contributed to cross-cultural cuisines such as Korean-Western
pasta Gangnam style. They aimed to promote their qualitative coffees by attracting culinary-
based customers with international food as these had always been an attraction to consumers
in this globalized markets.
Café Passion and Cultures
Customers love Starbucks’ coffee selections in significance with humanistic
characters and philosophy, as if their assemblage and rest abided with respect and
appreciation. They love Starbucks specifically for their retentive and genuine services,
pleasing atmosphere with romantic appeal of chosen music, and coffee out of expertise.
Café cultures of Starbucks primarily initiated by the characterized Starbuck in Moby
Dick, conjured the ardour for high seas and navigational beliefs of the early coffee traders.
Later, after the Starbucks licensed under Howard Schultz, Starbucks aimed to create: a
consigned corner of conversation, a locality reassuring the sense of community, a mediator
between work and home. Starbucks endeavours to formulate a feeling of connection.
Cheong Foh is one of the notorious ethical business that fastened themselves with
quality maintenance, cultural contribution and good customer services. The coffeehouse
owner assured the customer’s was well-informed of their ethical coffee processing, and they
aimed to produce every good cup of coffee to serve better by contributing sufficiently and

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carefully in the processes. Their motto is always attesting their trustworthiness, ‘even by just
a bit, I'll want to make the cup that I serve better.’ They have a greater philosophy and vision
affiliated with local spirit and formation of coffeehouse, ‘the world is one, no war, no hatred,
a lot of good coffee to share.’ They have a strong will to reassure customer’s reliance on
specialty coffee preferable to the instant coffee. They have clear and selfless vision about
supporting this healthy cause because coffee market demanded for good transparency –
coffee owners want natural, fair trading and organically processed of coffee commodity. As
the potential side effects in terms of instant coffee chemical processes is the conscientious
reasoning for ethical coffee developers to motivate consumers to move way from this type of
coffee products.
CU Latte also contributed to the contemporary trend of café by enlivening atmosphere
with old-fashioned song related to coffee. They claimed the songs have caffeinated effect,
and they are satisfied for these relaxing, cheerful and delightful melody. The coffee matched
perfectly with the melody atmosphere which give coffee lovers a unique sensation, driving
them with the influential coffee philosophy by Cheong Foh brand’s good foundation
effectively stir up their inner world. Cheong Foh coffeehouse concerning and stimulate
development for calorie-free beverage. They are passionate in creating coffees with immense
of philosophy and livelihood acknowledgement, varying from most of the modernised
coffeehouse with commercial practices, implementing, insisting and appreciating the purest
method of producing coffees, according to local ancestors and coffee cultures of trustworthy
Malaysian folks, without the artificial fusion of unhealthy add-ons or processes, such as
sugar-free caramel and non-fat ingredients that brimming away with antioxidants, while
maintaining the natural extract, beverage philosophy and local gratification of traditional
method’s processing coffees. Owner of Cheong Foh which always occupied with deep faith
and affection on coffee, also has strong attachment for the origin of coffee which revolved
around Ethiopia. Their coffee practices and devoutness is upheld with their responsibility and
professionalism, professing their business honour and reliability on the coffee markets. Their
brand does not only cultivated interest and characters of coffees in every customers, but also
instilled coffee health and beverage knowledge to every heart of aficionados, and coffee
stories to active coffee lovers.
Food Cultures and Their Motives

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Starbucks promote the diversity and globalization of food cultures for international
students. For instance, the Mississippi mud muffin is associated with Southern United States
cuisine, blended with chocolate originated from Belgium. Besides that, tandum with salted
caramel, chocolate and passion fruits is invented in New Zealand, and fruity cinnamon roll
developed from Sweden. Starbucks aim to provide traditional and wholesome food which
exclude trans fats, artificial flavours and dyes, and high fructose corn syrup.
CU Latte has adapted the neighbourhood food cultures in fulfilling the regional
market demands after the realization on incompetence of marketing. Creativity and
enthusiasm on food has always been a motivation for their traditional coffee business such as
rolling pizza, colour-layered cakes of Jalur Gemilang. They also prioritized on the essence of
breakfast by innovating and improving the big breakfast, with their relevant experiences and
gratitude of these services in the past 60 years. They promote food pairing with coffees along
the informational and attractive selections which specific food brought unexpected great
effect to customer’s taste buds.

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Commercial Success
Berjaya Starbucks is interpreted as commercially successful in the comparative
analysis with C U Latte Cheong Foh in terms of the complexity of distribution network,
business motto and standardisation.
Recommendations (Competitiveness)
To enhance reformation in terms of competitiveness in coffee markets, Berjaya
Starbucks can instituted coffee research lab to monopolize coffee market demands by the
restructuration of production system which completely complement transforming trend of
market in globalization and modernization. The upsurge of consumer’s satisfaction due to
company’s professionalism and leadership can justified the emergence of new markets, in
spite of extending the sophistication of business organisation that proves impractical to
patronise the café.
To refashion the ineffective public relation between influential representative and
Cheong Foh regarding of their dedication for café’s publicity in terms of its virtuous
reputation in the coffee market, Cheong Foh shall strategically enhances familiarisation of
brand identity in markets to triggered development of beliefs and trusts that can achieved the
realization of potential partners.

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Appendices (Interview Records)
1. Name: Berjaya Starbucks Coffee Company Sendirian Berhad
2. Current location: Taylor’s University Lakeside Campus
3. Number of employees: 10 person
4. Number of branches: 2 outlets
5. Main products:
- Coffee (According to Starbucks Roast Spectrum, coffees are assessed as Blonde
Roast, Medium Roast and Dark Roast; the inimitable control of temperature and
time resulted in their peak of scent, acerbity, form and savour)
6. Main services:
- Malaysia Starbucks Card services
- Customized grinding (coffee beans)
7. Estimated number of customers: in the range of 400 to 500 person
8. How does the introduction of cards help in your business?
The cards aim to pertain customers’ loyalty through membership which enhance their
Starbucks experiences and reward their trust and passion for Starbucks.
9. How do you look into your customers’ experiences at Starbucks?
Customizing experiences of Starbucks customers, Starbucks rooted their courtesy of
services in several purposeful environmental designs, which immersed their
customers in: old heritage of past centuries, ground-breaking assembly in the hub of
cultures and arts, retreat of calm and contemporaneous hub apart from the fleeting
outer world. Starbucks also maintained their customers’ beverage experiences with
the merchandise of seasonal and qualitative drinkware.
10. Who is the founder of this outlet? When did your outlet started the business? What are
the motives behind it?
The founder of Starbucks is the store owner in Seattle’s historic Pike Place Market.
Starbucks in Malaysia is founded by Berjaya Starbucks Coffee Company Sendirian
Berhad, and Taylor’s University Lakeside Campus’s outlet is operated since 2010.
They aimed to provide products and services to the university students with their good
employee engagement, performance cultures and leadership.
11. What are your company/outlet traditions and beliefs? Do they change by the course of
time?

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Starbucks believed in the cultural values of environmental practices by launching
Greener Cups movement, environmental lighting and efficient HVAC (heating,
ventilation and cooling) investment, water reduction and retrofitting of water fixtures,
and environmental construction strategies.
12. How do you accomplish your slogan of ‘Everything we do goes into every cup you
serve’?
The higher altitudes of farming, complex network of coffee farmer support centres,
nurturance of same-rooted relationships, reiteration of coffee harvests, and the
enormous replication of testing and critical analysis are Starbucks’ industry and
confidence which testified that their coffees are every cup of customers’ love. The
philosophy of coffee roasting, blending of international great coffees, frequent
examination of coffee sourcing, and perfection of climate, soil, elevation and
agricultural practices are the boundless passion and entrepreneurial values that ends in
a cup of customer’s coffee.
13. What are the major developments, such as major accomplishment and changes, in
your business of the past five (5) years?
In 2011, Starbucks Malaysia advocated Starbucks Card. Starbucks VIA Ready Brew
is launched upon its discovery. In 2012, Starbucks has more than 17,600 stores and is
valued at $35.6 billion. In 2013, Starbucks instigated Starbucks Connecting
Communities Project. In 2014, Starbucks generated old plan by inaugurated Starbucks
Card Mobile Application. Furthermore, Starbucks received the HR Best Practices
Gold Award, honoured by Malaysia Institute of Human Resources Management
(MIHRM). Moreover, Starbucks established the Community Computer Centre and
initiated the Global Month of Service, and they have contributed to 38 community
service projects and accomplished 27,437 community services hours. In 2015,
Starbucks was entitled “Best of the Best” in Aon Hewitt Employers-Malaysia 2015
Awards.
14. What is your company’s/outlet’s core success?
The core success of Starbucks is developed into a gigantic worldwide coffee company
which modelled market’s innovation. Their leadership in coffee specialty build
business opportunities lead by customized luxuries, dynamic retailing demography,
coffee lifestyle influences, provident leadership and interactive organizational
infrastructures. Their empathy on customers has create critical success of consistency,
ingenuity and brand awareness.

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15. What is your company’s/outlet’s vision in relation to workforce expansion?
The merit of baristas envisaged Starbucks’s dream, spirit and patron about coffee. The
company’s vision on workforce expansion must be disciplined under baristas’ passion
of being trained, as disregarding the quality of coffee beans, roasting, and equipment
and tools.
16. What kind of company headquarters' management that bring success to your outlet
retail careers?
Business Ethics and Compliance program safeguards outlet cultures and notoriety by
ethical decision-making via informational measures, training, investigation and
communication channels. This essentially resolved employee relation issues which is
the key of potential success of the outlet. Workplace diversity is effectively measured
by headquarter to prioritize in human connection and engagement, fairness and
justice, and ease of use and barrier free. The friendliness of outlet services is
safeguarded by headquarters’ expectation with employees’ unceasing kinship,
tolerance and humanity.
17. Who are your regional competitors and what are their products and services?
The direct regional competitors are Coffee Bean and Tea Leaf, their products and
services are ice-blended coffees and flavoured teas, and Coffee Bean Card services.
18. What strategies have been used in response to their competition and how successful
are they?
A higher responsive social media presence build customers’ certainty and trust.
Comparably, Starbucks disclose their awards’ recognition which create massive boost
in their reputation as compared to Coffee Bean and Tea Leaf which were seem
uncompetitive.
19. What are the obstacles faced by new businesses who wish to enter your regional
market today? How can they possibly overcome it?
The new businesses of coffee lacking excellence in coffee education, which is the
core foundation for café industry and baristas expertise. Consequently, the new
establishment of coffee businesses failed to execute the innovative core of coffee
delights and personalise coffee services which strengthened their customer
experiences prior to the competitive edge of contemporary café. These new businesses
can follow the leadership of notorious coffee suppliers and partners to pursue in their
further education and gain experiences in coffee entrepreneurship with their initiatives
of structuring good reputation for them.

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20. What is the nature of your regional market? For example, current market economy,
consumers and suppliers collaboration.
The Coffee and Farmer Equity (C.A.F.E.) Practices assured proper coffee trading and
ethical sourcing of responsibly grown coffee. They promote sustainable industry that
support farmers, such as organic farming practices and Starbucks Farmer Loan
programs. They collaborate with Mercy Corps to create tea production with good
health aids, youth engagement and economic progression.
21. How do you describe your company’s vision in terms of globalization? How does
your company’s foreign headquarter influenced your locally-registered coffeehouse?
Starbucks aim to create visionary products out of world’s coffee agriculture by
supporting farmers with resources and expertise of coffee. The foreign headquarter
affirmed every outlet as essential parts of Starbucks neighbourhood, which the outlet
gain managerial and leadership experiences in a bonding network of partners,
customers and community through their contribution channels. Subsequently, they
look and act on behalf of Starbucks beyond their boundary, with a higher
responsibility, assurance and philosophy on missionary success.
22. What customers are so passionate about at your café?
Customers love Starbucks’ coffee selections in significance with humanistic
characters and philosophy, as if their assemblage and rest abided with respect and
appreciation. They love Starbucks specifically for their retentive and genuine services,
pleasing atmosphere with romantic appeal of chosen music, and coffee out of
expertise.
23. What kind of café cultures do your company preserve and is passionate about?
Café cultures of Starbucks primarily initiated by the characterized Starbuck in Moby
Dick, conjured the ardour for high seas and navigational beliefs of the early coffee
traders. Later, after the Starbucks licensed under Howard Schultz, Starbucks aimed to
create: a consigned corner of conversation, a locality reassuring the sense of
community, a mediator between work and home. Starbucks endeavours to formulate a
feeling of connection.
24. What kind of food cultures are your company promoting? What are the motives
behind these?
Starbucks promote the diversity and globalization of food cultures for international
students. For instance, the Mississippi mud muffin is associated with Southern United
States cuisine, blended with chocolate originated from Belgium. Besides that, tandum

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with salted caramel, chocolate and passion fruits is invented in New Zealand, and
fruity cinnamon roll developed from Sweden. Starbucks aim to provide traditional and
wholesome food which exclude trans fats, artificial flavours and dyes, and high
fructose corn syrup.
25. Name: C U Latte by Cheong Foh
26. Current location: Port Tech Tower
27. Number of employees: 10 person
28. Number of branches: 163 outlets
29. Main products:
- Klang coffee species Liberica. Liberica is the only coffee commodity historically
splendid in Malaysia, with properties of lessen flavour, founders of coffeehouse in
Malaysia conduct adds-in roasting method with barley, caramel and butter.
- Foreign coffee series from global bean belt.
30. Main services: Customized brewing services (coffee beans)
31. Estimated number of customers: in the range of 50 person
32. Who is the founder of this company/outlet? When did your company/outlet started the
business? What are the motives behind it?
The founder of C U Latte by Cheong Foh is Cheong Yoke Lee, grandfather of current
coffeehouse owner. Cheong Foh is established in 1955, ranging about 60 years and C
U Latte is operated since 2015. Cheong Foh is inaugurated because of his
grandfather’s family livelihood in Malaysia since his migration from China. C U Latte
is operated to meet new demands and emerged into competitive service markets in
terms of the old coffeehouse expansion after 60 years of traditional management of
local coffeehouse.
33. What are your company/outlet traditions and beliefs? Do they change by the course of
time?
Cheong Foh is the one of the coffeehouses that persist the tradition and strategy of
expanding local coffees business and select the specialty coffee without accepting the
market demands on commercial coffee. They insist on the healthiness and quality of
coffee in terms of traditional, purified, and non-commercial method of coffee beans
roasting; and the time-consumption and excellency largely revolved around
parchment coffee checking processes. According to him, Malaysia was ranked 45th

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top coffee consuming country in the world in 2013, with 1.3kg of beans consumed per
person on average. This is the outstanding business indication which largely locals
considering and preferring thick coffee, a strong black coffee served purely with
sugar. They has a strong intuition and business knowledge about the local coffee
products and with abundant experiences on running a local coffeehouse, they have
exceptional determination, driving motivation and strong temperament in local coffee
management, from the plantation, they chose good coffee species Liberica cultivated
in Klang, which is the unique taste from local agricultural ancestors and local
environment, through careful handpicking processes, watchful progressions, thorough
sorting procedures, thoughtful roasting to the careful formulation and traditional skills
of caramel-coating, and delicate brewing of coffee beans. Similar to certain coffee
traditional cultures such as Ethiopian Yirgacheffe, coffee in Malaysia has the similar
preparation ritual such as brewing of used coffee grains several times to meet the
lessen flavour preferences of local folks. They played an important role in preserving
the unique coffee cultures of Malaysia and thereby maintaining the local demands for
Klang coffee. Cheong Foh adapted the local and traditional making of coffees into the
foreign coffees, concentrating on the purity, essence and authenticity of processing
and instilling the same effort and coffee philosophy in the quality-making of foreign
coffees, which make them in good account and attraction to foreign and local
customers.
1. What are the major developments, such as major accomplishment and changes, in
your business of the past five (5) years?
The operation of contemporary coffeehouse is the prior development of a traditionally
founded coffeehouse in Malaysia. This culturally westernised and culinary globalized
coffeehouse fulfilled the customers’ demand according to the epoch of modernization.
In several years ago, Cheong Foh coffeehouse achieved international fame as it
became the primary selection for foreigner’s Klang tour according to the shop listing
of Selangor district governance.
2. What is your company’s core success?
Cheong Foh’s core success is acting as an important, unique, supportive, innovative
and persisting coffee entrepreneurship in preserving the locality, traditional quality,
customers’ delight, commitment and healthiness in the preferences and distribution of
trustworthy coffees.
3. What is your company’s/outlet’s vision in relation to workforce expansion?

26 | P a g e
4. Cheong Foh has critical vision and strategies in expanding and cultivating workforce
for the coffeehouse development, but market demands is unsatisfactory due to young
adults occupational and taste preferences, inconsistency and disloyalty of trained
employees, and the lacking of motivation and interest in managing local and
traditional established coffeehouses. They have unwavering determination, sufficient
acknowledgement and experiences, long-lasting patience and implementation of
attractive policies in terms of trials and hardships of expanding their workforce in
their local coffeehouses. They aimed to preserve and continuously practice the
passionate-driven and customer-friendly approaches in terms of workforce direction
of their coffeehouses.
5. Who are your (regional/Starbuck) competitors and what are their products and
services?
The recent emergence of China expansion’s coffeehouses had brought an inevitable
impact on their local coffee businesses. Their competitors such as China’s expanded
hotels in Computer Station had a good success, fame, qualitative coffee processing
and China’s culturally-supported coffee-making which provide a competitive edge of
coffee demands in the same markets.
6. What strategies have been used in response to their competition and how successful
are they?
Implementing strategies for secondary product’s competition, Cheong Foh provide
three trustworthy manufactured flavours of gourmet tea in terms of China’s
competitive tea commodity in the global beverage market, to relocate customer’s
attention on coffee to other beverage preferences that form a new marketing direction
to patronize unsatisfied customers. Secondly, according to the global emergence of
preferences on purer and cleaner filtered coffee, Malaysian coffeehouses are
proceeding to these new era of coffee-making. Cheong Foh predictably invested in the
V60 coffee filtration in encountering customer’s desertion of flavoured coffee. In their
newly established CU Latte contemporary coffeehouse, they dedicated to the Diedrich
Coffee Roaster from United States which effectively produce overwhelming result of
roasting and customer’s coffee experiences.
7. What are the obstacles faced by new businesses who wish to enter your market today?
How can they possibly overcome it?
The main obstacles is the rising cost of coffee beans. The extraction of coffee beans
are blended with the impurities during coffee harvest and along with the increment of

27 | P a g e
prices had made many coffee businesses degrading to their cessation. The relative
amount of capital investment is prior to establish a good coffee entrepreneurship,
direction, culture and market. Workforce is a problematic sourcing for local
coffeehouse businesses, because many young adults are revenue-driven, business-
motivated, luxury-dominant, and artistically manipulative instead of philosophy-
manageable, coffee-propelling, ethical-and-cultural driven and motivated for long-
term success. Coffeehouse’s location is the resolution for every coffeehouse business
failure or deprivation. Many unexperienced coffeehouse owners had encountered
massive loss or termination due to the lacking of understanding and good schemes in
terms of selecting location.
8. What is the nature of your market? For example, current market economy, consumers
and suppliers collaboration.
Cheong Foh maintain a good relationship with coffee beans supplier in Klang to
continuously discover and obtain improving coffee beans in terms of long-term
trading. They have a good business relation with informative communication and
experience exchanges that can benefit the development of local coffeehouse. Many
philosophical customers have good understanding about coffee markets and truthful
passion for coffee has continuously being supportive to the coffee business. The
market economy of coffee supplies has continuously depriving dated back to last 60
years because of the agricultural pests in coffee plantation and largely important
agricultural land is being developed into commercial land. The coffee businesses
became largely dependent on huge and continuous capital investment to sustain
quality and originality of coffee products.
9. How did your company’s foreign food impacted on company’s culture?
CU Latte also actively contributed to cross-cultural cuisines such as Korean-Western
pasta Gangnam style. They aimed to promote their qualitative coffees by attracting
culinary-based customers with international food as these had always been an
attraction to consumers in this globalized markets.
10. What customers are so passionate about at your café? What kind of café cultures do
your company preserve and is passionate about? Are these related to each other?
Cheong Foh is one of the notorious ethical business that fastened themselves with
quality maintenance, cultural contribution and good customer services. The
coffeehouse owner assured the customer’s was well-informed of their ethical coffee
processing, and they aimed to produce every good cup of coffee to serve better by

28 | P a g e
contributing sufficiently and carefully in the processes. Their motto is always attesting
their trustworthiness, ‘even by just a bit, I'll want to make the cup that I serve better.’
They have a greater philosophy and vision affiliated with local spirit and formation of
coffeehouse, ‘the world is one, no war, no hatred, a lot of good coffee to share.’ They
have a strong will to reassure customer’s reliance on specialty coffee preferable to the
instant coffee. They have clear and selfless vision about supporting this healthy cause
because coffee market demanded for good transparency – coffee owners want natural,
fair trading and organically processed of coffee commodity. As the potential side
effects in terms of instant coffee chemical processes is the conscientious reasoning for
ethical coffee developers to motivate consumers to move way from this type of coffee
products. CU Latte also contributed to the contemporary trend of café by enlivening
atmosphere with old-fashioned song related to coffee. They claimed the songs have
caffeinated effect, and they are satisfied for these relaxing, cheerful and delightful
melody. The coffee matched perfectly with the melody atmosphere which give coffee
lovers a unique sensation, driving them with the influential philosophy by Cheong
Foh brand’s good foundation effectively stir up their inner world. Cheong Foh
coffeehouse concerning and stimulate development for calorie-free beverage. They
are passionate in creating coffees with immense of philosophy and livelihood
acknowledgement, varying from most of the modernised coffeehouse with
commercial practices, implementing, insisting and appreciating the purest method of
producing coffees, according to local ancestors and coffee cultures of trustworthy
Malaysian folks, without the artificial fusion of unhealthy add-ons or processes, such
as sugar-free caramel and non-fat ingredients that brimming away with antioxidants,
while maintaining the natural extract, beverage philosophy and local gratification of
traditional method’s processing coffees. Owner of Cheong Foh which always
occupied with deep faith and affection on coffee, also has strong attachment for the
origin of coffee which revolved around Ethiopia. Their coffee practices and
devoutness is upheld with their responsibility and professionalism, professing their
business honour and reliability on the coffee markets. Their brand does not only
cultivated interest and characters of coffees in every customers, but also instilled
coffee health and beverage knowledge to every heart of aficionados, and coffee
stories to active coffee lovers.
11. What kind of food cultures are your company promoting? What are the motives
behind these?

29 | P a g e
CU Latte has adapted the neighbourhood food cultures in fulfilling the regional
market demands after the realization on incompetence of marketing. Creativity and
enthusiasm on food has always been a motivation for their traditional coffee business
such as rolling pizza, colour-layered cakes of Jalur Gemilang. They also prioritized on
the essence of breakfast by innovating and improving the big breakfast, with their
relevant experiences and gratitude of these services in the past 60 years. They
promote food pairing with coffees along the informational and attractive selections
which specific food brought unexpected great effect to customer’s taste buds.

30 | P a g e
Minutes of Meeting
Date: 12th January 2016
Time: 1 – 2pm
Venue: Level 3, Taylor’s Library
Names of Group Members Tutorial Group Role
Jiji Ng Wed, 6.30 – 8.30pm Chairperson
Wong Yun Teng Wed, 6.30 – 8.30pm Secretary
Mashruk Asad Wed, 6.30 – 8.30pm Member
Janson Chen Wed, 6.30 – 8.30pm Member
Tan Tee Jane Tue, 2 – 4pm Member
Ho Hong Lok Wed, 6.30 – 8.30pm Member
Jason Goh Wed, 6.30 – 8.30pm Member
Pau Jin Wei Wed, 6.30 – 8.30pm Member
No. Activity Action taken by
1 Introduction Jiji Ng
2 Assigning tasks Jiji Ng, Wong Yun Teng
3 Agreement of work
distribution
Mashruk Asad, Wong Yun Teng, Janson Chen, Ho Hong
Lok, Pau Jin Wei, Jason Goh, Tan Tee Jane

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References
1. Berjaya Starbucks Coffee Company. Retrieved from
http://www.starbucks.com.my/.
2. C U Latte by Cheong Foh. Retrieved from
https://www.facebook.com/culattebycheongfoh/.
3. The origin of coffee. (2010, March 27). The Telegraph. Retrieved from
http://www.telegraph.co.uk/foodanddrink/7507026/The-origin-of-coffee.html.
4. History of coffee. Turkish Coffee World. Retrieved from
http://www.turkishcoffeeworld.com/History-of-Coffee-s/60.htm.
5. Coffee Facts: history of coffee. Owl. Retrieved from
http://www.owl.com.sg/page.php?levelid=B534R532S534&n=History+Of+Coffe
e&id=X534P532F535.
6. Chatime. Retrieved from http://www.chatime.com.my/main/index.php.
7. OldTown White Coffee Company. Retrieved from http://www.oldtown.com.my/.
8. Hometown Hainan Coffee Company. Retrieved from
http://www.hometowncoffee.com.my/#fb0=5.
9. Neves, M. F., Kalaki, R. B. & Trombin, V. G. (2011, May 17). The future
competitiveness of the café do cerrado: key elements for success to the first
Brazilian geographical indication. Symposium Papers. Retrieved from
http://www.ifama.org/files/conf/2011/Symposium%20Papers/427_Symposium%2
0Paper.pdf.

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