integrated report

SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN

FOUNDATION IN NATURAL AND BUILT ENVIRONMENT

RESEARCH REPORT

PRESENTATION TITLE: COMPARISON BETWEEN TWO BAK KUT TEH BUSINESSES

GROUP MEMBERS:

Names Presentation / Research Report Roles.Lee Fong Yen (0321976) Obstacles faced, Similarities and Differences

Loo Siah Mong (0321995) Competitors in Klang and Strategies used.Soh Yong Zhou (0322123) Introduction to Bak Kut Teh and Competiors in BPMelanie Soon (0322327) Description Of Bak Kut Teh Business in Klang

Nhat Dinh (0313309) RecommendationsOmar Layas (0322080) Description Of Bak Kut Teh Business in BP

ENGLISH II / ENGLISH 2 (ELG 30605 / ENG 0205)

LECTURER: CASSANDRA WIJESURIA

SUBMISSION & PRESENTATION DATE: THURSDAY, 26th NOVEMBER 2015

1 Research Report (Comparing Two Businesses)ENGLISH II ELG30605

LEE FONG YEN (0321976), LOO SIAH MONG (0321995), SOH YONG ZHOU(0322123),MELANIE SOON (0322327), NHAT DINH (0313309), OMAR LAYAS (0322080)

TABLE OF CONTENTS

No. Description Pages

1. Key Summary 3-5

2. History of Bak Kut Teh 6

3. Descriptive History of the Businesses 7-9

4. Brief Description of the Businesses 10-12

5. Comparative Analysis of the Businesses 13-14

6. The Competitors 15-19

7. Obstacles Faced by New Businesses 20-21

8. Nature of the Market 22

9. Similarities and Differences 23-24

10. Conclusion 25

11. Recommendations 26-31

12. Comparative Analysis Summary Table 32-34

13. Appendices (Photos) 35-41

14. Appendices (Interview Questions) 42-47

15. Appendices (Minutes of meeting) 48-53

16. References 54-55

17. Presentation slides 56

THE KEY SUMMARY2

Research Report (Comparing Two Businesses)ENGLISH II ELG30605


The Assignment

We were asked to compare two types of businesses in the same industry. One based in

Klang valley while the other one based in a different geographical location in Peninsular

Malaysia. We were required to set an appointment beforehand and conduct a face to

face interview with the owner of the business chosen. During the interview session, we

were to collect all available data and information needed for the report. After that, all

notes and researches were properly organized and compiled as a research report for

submission. Research report includes the descriptions of both businesses, the

comparative analysis, the recommendations, as well as pictures and appendices.

The Team

As a group of six, consisting of Soh Yong Zhou, Lee Fong Yen, Loo Siah Mong, Melanie

Soon, Omar Layas and Dinh Minh, we were all given specific tasks to carry out in

ensuring everyone shares a part of work in completing the assignment. Dinh, who is

good at taking pictures, was the cameraman during our interview session while Yong

Zhou, being fluent in both Chinese and English, he was in charge of interviewing the

interviewees for both businesses. As for Lee Fong Yen and Loo Siah Mong, there were

both in-charge of managing overall tasks and handling the research assignment. The last

but not least would be Melanie Soon and Omar Layas, who were both given the tasks of

editing the video clip and doing the presentation slides on the businesses.

Location



Given a choice to choose businesses from a different geographical location, we chose a

Bak Kut Teh restaurant (Hock Chew Restaurant) based in Batu Pahat, Johor and

Restaurant Swee Xiang based in Klang. Both businesses chosen have been operating for

over 10 years.

Task Methodology

Internet- Researches were made beforehand as a preparation for the interviews.

Researches include finding out more about the type of businesses, their histories,

owners’ contact details, social media and others.

Interview- Interviews were conducted on two different restaurants to identify and

understand more about the specific business chosen. All answers from interviewees

were recorded.

Interview questions include:-

Why are you in business?

What is your background? Education, Work Experience

Can you provide me with a description of your business?

How long have you been in this business?

What type of business form do you have, sole proprietorship, partnership, corporation?

What are the advantages of this form of business ownership?

How did you get started in this business?

How did you get the background and skills necessary to run this type of business?



Do you know who your competitors are?

How do you market your business? How are people aware of your business?

Where do you see your business in the next year? In the next five years? The next ten years?

Do you plan to compete in the global market place? If yes, how? If no, why not?

How has technology, such as computers and the internet, impacted on how you conduct business?

Why is your business located on this site?

Whom do you seek advice from for your business?

What do you do with your profits?

Do you have a business plan to operate your business?

Does your business have a stated mission statement, the reason that this business exists?

Do you have employees? How many?

Do you do marketing for your business?

Can you describe your customers?

Why do your customers select you over your competitors?

How do you overcome these ethical problems?

What are the biggest issues for running this business?

What is the future for this type of business?

THE HISTORY OF “BAK KUT TEH”



Bak-Kut-Teh (Bah-Kut-tê) is a popular pork dish in the South-East Asia region,

particularly in Malaysia and Singapore, where there is a predominant Hokkien and

Teochew community. Bak Kut Teh is popularly thought to have originated in Klang,

where it was claimed that a Chinese sinseh developed the in the 1930s. The dish is

reported to supplement the meager diet of port coolies and as a tonic to boost their

health. Bak Kut Teh can be translated as “meat bone tea”. Despite its name, there is in

fact no tea in the dish itself. The tea refers to Oolong Chinese Tea, which is usually

served alongside the soup in the belief that it dilutes or dissolves the copious amount of

fat consumed in Bak-Kut teh. The main ingredients of Bak Kut Teh are pork ribs, complex

broth of herbs and spices. Bak Kut Teh is often eaten with rice, yam rice or noodles.

Youtiao (dough fritters), plays the inseparable role with Bak Kut Teh.

Bak Kut Teh is a popularly favored dish in Malaysia. However, there are certain

versions of Bak Kut Teh due to the difference of regions. For instance, Klang is a

landmark of Bak Kut Teh; it serves a “hardcore” broth of Bak Kut Teh and “dry” Bak Kut

Teh, in other words; a Bak Kut Teh without soup. However, in Southern Malaysia

(Johor), they mainly focused on a light broth of Bak Kut Teh. The main visual difference

between the Hokkien and Teochew version of Bak Kut Teh is that the Hokkiens use more

dark soy sauce and thus the soup base is characteristically darker in color.

HISTORY OF BOTH BUSINESSES



History of Hock Chew Bak Kut Teh (Batu Pahat)

Ah Wang (58), the owner and founder of Hock Chew Bak Kut Teh. He was a high school

dropout at the age of 15. Like most of the dropout kids at that time, Ah Wang was lost

and wondered what he was going to be in the future. Despites the hesitations and

struggles in his mind, there was one thing standing strong and clear in his mind, which

was cooking. He started to learn the cooking skills. But Bak Kut Teh was not the first dish

he learned though. He learned to cook Bak Kut Teh from his friend. He then began to

run this Hock Chew Restaurant in 1984. As the time went by, the good reputation was

well spread from consumers to consumers. Nonetheless, Hock Chew business was

critically hit by the influenza, SARS in 2000s. Hock Chew yet was fortuitously survived

from the SARS and still providing people tasty and affordable Bak Kut Teh in Batu Pahat

to date.

History of Restaurant Swee Xiang (Klang)



Restaurant Swee Xiang, the legendary restaurant in Klang. Restaurant Swee Xiang was

established by Alex Ong and Joey in 2004. The motivation behind the Restaurant Swee

Xiang was simple, Alex Ong and Joey they both loved to cook. They enjoyed seeing their

customers leave their restaurant with a satisfied expression. This belief bonded Alex Ong

and Joey with Restaurant Swee Xiang to go through all challenges from the past 11

years. 7 years ago, it was a typical day for Alex and Joey. But a tragic thing happened on

that night. Restaurant Swee Xiang was caught fire and the fire nearly burnt down the

entire building. There is a saying that goes, “What doesn’t kill makes you stronger.”

Indeed, Alex and Joey decided to stand up from where they fell, which is rebuilding

Restaurant Swee Xiang at the same place. In order to make Restaurant Swee Xiang much

attractive than before, Alex decided to come up with a new dish that can potentially be

the best combination with Bak Kut Teh and after several failures, he finally did it, which

is now called “Ong Bak”. “Ong Bak” was a famous dish and people could even buy frozen

vacuum packed of it. With their unbreakable passion and strong belief of making tasty



Bak Kut Teh, Restaurant Swee Xiang has become the famous Bak Kut Teh restaurant in

Klang.



BRIEF DESCRIPTION OF THE BUSINESSES

Hock Chew Bak Kut Teh Restaurant Swee Xiang

Location 135, Jalan Shahbandar, Batu

Pahat, 83000 Batu Pahat,

Johor, Malaysia

No. 2, Lintang Sungai

Keramat 7C, Taman Klang

Utama, 42100 Klang,

Selangor Darul Ehsan

Contact Info - 016-3734037

016-6849811

Years of business 31 11

Numbers of branches and

employees

Branches: 0

Employees: 4 (family

members)

Branches: 0

Employees: 16 (owner and

family members, foreigners)

Founders of business Ah Wang Alex Ong & Joey

Forms of Business

Organization

Sole proprietorship Sole proprietorship

Education and career

background

Learned to cook Bak Kut

Teh at age of 15. Started to

run business in 1984

Started business right after

the graduation of form 5.

Motive of starting business Passionate about cooking -Passionate about cooking

-Having a family

background who owns a

Bak Kut Teh shop



-Interested in entering the

food industry

Main products Bak Kut Teh (main course) –

a famous dish of pork ribs

cooked with Chinese herbal

soup

Der Kah Chok (side dish) –

is a dish, mix of pork feet

with a huge ratio of black

vinegar

Giam Chai (side dish) – a

kind of Chinese style of

pickled vegetable salad. But

it only focuses on one to

two types of vegetables

Bak Kut Teh (main course) –

a famous dish of pork ribs

cooked with Chinese herbal

soup

Ong Bak (side dish) –

stewed pork with mainly

soy sauce and some

recipes.

Lu Egg and Der Kah (side

dish) -boiled eggs cooked

with herbal soya sauce with

huge amount of time.

Served together with Ong

Bak.

Lu tofu (side dish) – tofu

cooked with soy sauce with

huge amount of time

Consumer Base Family, students, tourist

(mostly from Singapore)

and individuals

Family, students, white

collars, individuals.

Current development Keep on doing what they

had been doing from the

past. (JUST LET IT BE)

Seeking an opportunity to

expand business

Future Plan “What will be will be.” –Ah

Wang

Hopefully to have at least



Not planning to expand the

business

one branch in future.

COMPARATIVE ANALYSIS OF BOTH BUSINESSES



Hock Chew Bak Kut Teh Restaurant Swee Xiang

Number of Competitors Around 2 Bak Kut Teh restaurants

within the area, and 10-20 in Batu

Pahat.

Approximately 2 Bak Kut Teh

restaurants within the area, and 50-

100 in Klang Valley.

Main Competitors Restaurant Mei Hwa Lin

(No.1, Jalan Flora 1, Taman Flora,

83000 Batu Pahat, Johor)

Restaurant Mei Hwa Lin is one of

the top Bak Kut Teh restaurants in

Batu Pahat. Most of the consumers

are from the Singapore. Therefore,

its price is a little bit higher

compare with Hock Chew Bak Kut

Teh

Restaurant Soon Huat

(No. 4, Jalan Maju 2,Taman Maju,

83000 Batu Pahat, Johor, Malaysia)

Restaurant Soon Huat is just

renovated and moved to a new

location. Restaurant Soon Huat has

40 years history of business. The

main attraction of Restaurant Soon

Huat is the free supply of You Tiao

for customers. Besides, Restaurant

Soon Huat has a graded (A) clean

environment from the Batu Pahat

Restaurant Thong Wei

( 1, Jalan Sentosa 3, Taman Chi Liung,

42000 Pelabuhan Klang, Selangor)

Restaurant Thong Wei is one of the

famous Bah Kut Teh in Klang Valley.

Most of the customers are from local

and also other states. Although the

taste of the Bah Kut Teh is nice, but

the service provided was not good

and there was no menu provided nor

available.

Restaurant Lai Heng (Samy)

(42000, 107, Jalan Chan Ah Choo,

Pandamaran, 42000 Port Klang,

Selangor)

Samy Bak Kut Teh has been

operating for over 10 years and is

famous among the locals. Their Bak

Kut Teh is served in individual bowls

where only a limited amount of soup

is given. Customers can hardly get

enough soup at this restaurant



official, which can be a

disadvantage for Restaurant Hock

Chew.

unless they order for an extra bowl

of rice, which can be an advantage to

Restaurant Swee Xiang. Even so,

many customers are willing to wait

for their turns to eat at their

restaurant as the food there are

tasty and delicious.

Obstacles and challenges faced

H1N1 and Influenza diseases in the

year 2000 caused difficulties in

running the business.

Having challenges in hiring local

workers as salary offered are low

and locals tend to be choosy in

finding a job. Therefore, more efforts

and time were needed to teach

foreigners.

Business strategies Fair and reasonable price

(Cheap rice served) and fresh food

(Do not serve overnight leftover)

Excellent customer service

(Smiley face charm)

Sell good- quality food

(Do not serve overnight leftover)

Uses of technologies No -Taking customers’ orders with iPad

-Details of the restaurant can be

easily found on the Internet

(Facebook)

Monthly income (average) RM 5000-RM6000 RM100k~

Side Business Providing factory packaged honey Supplying frozen, packed Ong Bak

Price Low-Moderate Moderate

Future Plan Stick with current status Opening more than 1 branches

THE COMPETITORS (KLANG VALLEY)14



Competitor 1

Restaurant Thong Wei (Klang)



Exterior view of Restaurant Thong Wei

Interior view of Restaurant Thong Wei

One person clay pot Bak Kut Teh at RM 11.00

Pork knuckle per bowl at RM 9.00

Chinese donuts at Rm 2.00 per bowl The shop owner

Competitor 2

Restaurant Lai Hing (Samy) (Klang)



THE COMPETITORS (BATU PAHAT)

Competitor 1



Menu in Restaurant Lai Hing (Samy)

Interior view of

Restaurant Lai Heng (Samy)

Exterior view of Restaurant Lai Hing (Samy)

Bak Kut Teh served in ceramic bowl at RM10.00 per pax

Workers helping out at the cooking area.

Restaurant Mei Hwa Lin (Batu Pahat)

Competitor 2

Restaurant Soon Huat (Batu Pahat)



Exterior view of Restaurant Mei Hwa Lin

Interior view of Restaurant Mei Hwa Lin

One Person clay pot Bak Kut Teh sold at RM10.30

Chinese donuts at RM2.00 per bowl.

The shop owner cooking Bak Kut Teh for his customers

Sweet potato leaves (side dish) at RM5.50 per bowl

Exterior view of Restaurant Mei

Obstacles Faced by New Businesses

1. Financial (Capital problem) 19



Menu

Clay pot Sesame chicken for one pax at RM12.00

Clay pot Bak Kut Teh for one pax at RM11.00

Exterior view of Restaurant Soon Huat

Interior view of Restaurant Soon Huat

To start of a business, a business proprietor needs a large amount of capital. The

capital included rental, renovation, furniture, premise and workers. An estimated

of roughly RM150k is needed. Of all obstacles, financing is still the biggest issues

to start a new business.

2. Price of Ingredients / rental increased

As the price of ingredients and rental keep on increasing now days, it is hard for

a business proprietor to maintain the price of the food. As so, a business

proprietor has to maintain the price to attract the loyal customers.

3. Market Competition

As an example, Klang is famous for their Bah Kut Teh. There are approximately

50-100 of Bak Kut Teh restaurants in Klang. It would be very challenging to start

a new business with those existing shops which have been operating for much

longer that possess more experience and have their own loyal customers.

4. Customers Taste



There are various tastes of Bah Kut Teh nowadays, making it hard for a new

business to compete with other existing businesses. Thus, there are a variety of

choices in the market where some of them might hard to satisfy some customer

5. Hard getting new customers

Starting off as a new business, customers would not know the delicacy served in

the shop. Therefore, to attract them over, the business should be creative in

coming out with special or unique dishes to get their own group of customers.

Nature of the Market



The nature of the market for both Restaurant Hock Chew (Batu Pahat based) and

Restaurant Swee Xiang (Klang based) is monopolistic competition. This is because both

businesses are operating in a market where there are firms/ competitors selling similar

but differentiated products. Not only that, they both are price takers, which means

having a weak pricing power in the business due to the many and intense competitors in

the same industry. Therefore, the price charged for a Bak Kut Teh meal is almost the

same in all restaurants. Due to the weak barriers to entry, the businesses are unable to

charge a higher price amount as this may cause customers to buy from other

restaurants. Therefore, in order to have a stronger pricing power, the businesses would

have to sell differentiated products to be able to maximize their profits. Product

differentiation results in customers developing an attachment for the products. Thus, it

will be harder for other competitors to steal them away.

SIMILARITIES AND DIFFERENCES BETWEEEN BOTH BUSINESSES



Name of business Hock Chew Bak Kut Teh Restaurant Swee Xiang

SimilaritiesThe main dish is Bak Kut Teh

Side dishes are available.

Great passion in making food

Most of the materials are purchased from locals

Serving good quality food is a priority

Currently have no branchesDifferences Menu

Does not provide proper menu

Menu written on board.

Advertising No Owns Social Media advertisement (Facebook)

(https://www.facebook.com/pages/Restoran-Swee-Xiang/208096622552839?fref=ts)

Prices Roughly estimated price for a single person is approximately

RM10

Roughly estimated price for a single person is approximately

RM13-RM14

Other products

Factory-packaged honey Frozen packed meat (Ong Bak)

Future Plan No Franchise expansion (1-2 branches in the future)

Technology No Taking advantage of technologies (iPad) to take

customers’ orders



Employees Family members (2-3) Foreign workers (13)

Years of business

31 11

Monthly Revenue

RM5000-RM6000 RM100, 000

Business Hours

Daily9 a.m. to 6 p.m.

Daily6.00 a.m. to 2.30 p.m.

CONCLUSION



After comparing two similar businesses from two different geographical

locations, we conclude that Restaurant Swee Xiang, which is based in Klang is more

commercially successful than Hock Chew Bah Kut Teh. Even though Restaurant Swee

Xiang has only operated 11 years, having a shorter period of time compared to Hock

Chew Bah Kut Teh, it has been able to earn the maximize amount of revenue every year.

This shows a good and stable financial income that allows them to expand their

business. Not only that, they have been gaining attention from locals and tourists for

their famous signature dish, “Ong Bak”, thus, having a big number of loyal customers

eating at their restaurants. Regardless of the shop being located in a housing area, it has

a strategic location which faces a big and spacious field, causing the surrounding to be

cozy and nice. In addition to that, the business strategies to attract more customers are

by providing good services and quality food to their customers. Last but not least, to

attract more customers into their shop, selling frozen, packed meat “Ong Bak” has been

one of their best-selling products that has brought convenience to customers to fulfill

their taste buds even when they are at home.

RECOMMENDATIONS



Hock Chew Bak Kut Teh

Area of improvement: Location of business and limited parking spaces.

Recommendation: Relocating their business.

As the business/ shop is located on a one way road, it is easily missed out. Customers

have difficulty spotting the shop. Not only that, the non-strategic location there causes

the limited parking spaces provided for the customers. Therefore, the owner can

consider finding a more strategic location, with enough parking spaces for their

customers’ convenience.



Area of improvement: Rustic and dilapidated restaurant outlook, poor lighting

features as well as poor ventilation.

Recommendation: Upgrading the shop’s exterior and interior features

As seen from the front view of the shop, the building looks rustic and old. The other

options apart from relocating business would be improving the physical appearance of

the shop to attract more customers. The owner can consider re-painting the whole

building and installing more lighting features to make it look clean and bright. The next

problem would be the polluted air from cars passing by the shop. Upgrading it by

putting one or two air conditionings would be a good way to improve the shop’s air



ventilation and quality. Thus, customers would feel comfortable having their food in the

restaurant.

Area of improvement: Regularity of dishes sold.

Recommendation: Creating and selling new dishes to be inserted in the menu.

The owner can consider increasing the selection of dishes sold by coming out with new

unique dishes of their own. Instead of only selling two to three types of dishes, they can

improve the menu and start attracting new and different group of customers into the

shop.



Restaurant Swee Xiang Bak Kut Teh

Area of improvement: Insufficient tables and chairs provided as well as poor

ventilation.

Recommendation: Renovating and upgrading the shop’s interior and exterior features.

The owner can expand to a bigger space area by renovating and creating a better and

more spacious space to accommodate the many customers that visits the shop.

Providing a shade outside the shop would be a good option to prevent customers from

eating under the sun or rain. In addition to that, as the food is prepared and cooked in

an open area inside the shop, a few air-conditionings or air ventilators can be fixed



inside the shop to improve the ventilation so that customers would not feel stuffy and

uncomfortable when eating.

Area of improvement: No proper menu.

Recommendation: Preparing a proper and attractive menu in both English and Chinese

Instead of having their menu written and cramped up on a whiteboard, it would be

better if the owner could come out with a proper menu for the customers’ convenience.

Not only the menu should be well-designed and attractive, it should also be clear with

proper pricing written in it. The owner should also include their operating hours and

resting days, so that customers would know when the shop would be closed. Hence,

customers would easily know the types and prices of food sold there. As for customers

who are unable to read Chinese, they can refer to the English menu to make their order.



Area of improvement: Stagnant expansion of business.

Recommendation: Opening a few branches.

Owners can consider opening a few branches for their shop as their financial condition

allows them to do so. Not only that, the shop is currently located in a housing area,

making it difficult for people from the town area as well as tourists to visit their shop. It

would be recommended to expand their business into the town area as well as other

states in Malaysia. This would enable other people from different states to enjoy the

shop’s specialty.

Comparative Analysis Summary Table



Competitive Traits Hock Chew Bak Kut Teh

(Batu Pahat, Johor-Based)

Restaurant Swee Xiang (Klang Valley-Based)

1. Number of Competitors (in ranges e.g. 2 to 10, 10 to 50, 50 to 150, etc.)

10-20 competitors 50-100 competitors

2. Barrier to Entry (Weak or Strong? Why?)

Barriers to entry is weak as there is freedom to leave or enter the market.

This is because the businesses engaged in monopolistic competition require a low capital to start their business, thus allowing easy entry and exits for businesses in the market. However, in order for the business to gain profit, constant development of differentiated products is needed, resulting in a much bigger amount of investment compared to the capital. With easy entry and exit, firms will enter the market where present firms experience economic profit, and exits the market when there are losses incurred.

Barriers to entry is weak as there is freedom to leave or enter the market.

This is because the businesses engaged in monopolistic competition require a low capital to start their business, thus allowing easy entry and exits for businesses in the market. However, in order for the business to gain profit, constant development of differentiated products is needed, resulting in a much bigger amount of investment compared to the capital. With easy entry and exit, firms will enter the market where present firms experience economic profit, and exits the market when there are losses incurred.



3. Differentiated or Standardized Products (if differentiated provide 2 to 3 examples)

Differentiated Products

-Der Kah Chok

-Giam Chai (Salted Vegetable)

Differentiated Products

-Ong Bak

-Lu Tofu

-Frozen Packed Meat “Ong Bak”

4. Pricing Power (Price Maker or Taker? Why?)

Price Taker

Weak pricing power

Having Bak Kut Teh as their main dish, which is similar to most of the Bak Kut Teh restaurants, the business cannot sell them at a higher price. The owner has to refer to the industry price as a guideline for their business to prevent loss of customers to rivals of the same field. However, each business has their own unique products (Salted vegetables and Der Kah Chok) .Therefore, they are able to decide the prices of their own signature products, whether to make it lower or higher, but the price set has to be reasonable and affordable to customers.

Price Taker

Weak pricing power

Bak Kut Teh, being the main dish of the business cannot be sold at a high price. As there are many similar Bak Kut Teh restaurants around Klang, the business would undergo a loss in customers to other businesses if dishes sold are more expensive. Still, because each business has their own unique products (Ong Bak, Lu Tofu, Lu Egg and Der Kah). Therefore, they are able to decide the prices of their own unique products, whether to make it lower or higher, but it has to be reasonable for all customers.

5. Other Characteristics (e.g. Any close product

Due to broad choices of food in the food and beverage field, there are too many close product substitutes



substitutes, mutual dependence, constant advertising)

available for customers to choose from. Bak Kut Teh is one of them, being consumed whenever customers feel like it. Therefore, Bak Kut Teh is easily replaced by other types of food such as “Nasi Lemak”, Economical rice and

others.

6. Verdict (Monopoly? Oligopoly? Perfect Competition?

Monopolistic Competition

-The business decides the price of the products sold. They work independently, without being engaged and affected by other rivals or businesses. However, the business has to refer to the industry price as a guideline for their business, especially for their main dish which is Bak Kut Teh.

- The business sells a much more different type of dish, which are Der Kah Chok and Giam Chai.

- The owners ensure there is a maximum of profit earned.

Monopolistic Competition

-The business makes independent decisions about price and output, based on its product, its market, and its cost of productions. However, the business has to refer to the industry price for their main dish, Bak Kut Teh as a guideline for their business, to prevent loss of customers to other businesses.

-There is a differentiation in the types of food/dishes sold. Ong Bak, their dish can hardly be found in other Bak Kut Teh restaurants in Klang. Therefore the dishes sold are different from other restaurants in Klang.

-Being a monopolistic competitor, the business maximizes profit with the owners actively involved in managing the business.

APPENDICE 1 (PICTURES)

Restaurant Swee Xiang (Klang) 34





The Exterior view of Restaurant Swee

Xiang



Clay pot Bak Kut Teh (Soup) for 1 pax at

RM10.00

Lu tofu (side dish) sold at RM2.00

per piece.

The Interior view of Restaurant Swee Xiang



Frozen packed Ong Bak at

RM49.90 per packet

Ong Bak (side dish) at RM47.00

per plate

IPad used to make it easier to take the customers’ order.

The menu written on a board in Restaurant

Swee Xiang



Group photo after interview

The owner’s name card

The cooking area of the restaurant, where all dishes are cooked

and prepared

Restaurant Hock Chew (Batu Pahat)



Exterior view of Restaurant Hock

Chew

Restaurant Hock Chew’s signboard

Restaurant Hock Chew’s cooking area, where Bak

Kut Teh are prepared.



The Interior view of Restaurant Hock

Chew

Clay pot Bah Kut Teh (Soup) for 1 pax at

RM10.00

Der Kah Chok sold at RM6 per plate.

Chinese Donuts sold at RM1.50 per

bowl



Salted vegetables (side dish) at RM2 per plate

Factory-packaged honey sold at RM9

per bottle

A picture of our group member with the owner



Notes taken by one of our group member

Interview questions in Chinese

APPENDICE 2 (INTERVIEW QUESTIONS)

Restaurant Swee Xiang (Klang)

Q: When was the business found?

A: It started in the year of 2004; I have been in this business for 11 years.

Q: Who are the key founders?

A: The key founders of this business were me and my wife.

Q: What prompted the founders to start this business?

A: The reason why I started this business was because I was interested in the food field.

Q: What are your main products?

A: The main product sold is “Bah Kut Teh”. There are a few types of side dishes which are Lu tofu, ong bak and frozen, packed ong bak.

Q: Who are your customers?

A: There are various types of customers, which includes students, businessman, kids and tourists from overseas and other states.

Q: What is the business’ annual revenue figure?

A: It is about RM100k per month and roughly Rm1.2 million per annual.

Q: How many branch offices/ stores do you have (if applicable)?

A: So far there no branches and this is the only shop where I run my business.

Q: Can you provide us a brief history of your business and its most recent developments?

A: At the very beginning when I started the business in 2004, the business was

already operating smoothly and there were no major obstacles that affect our

business until today.



Q: Do you have many competitors? Who are they? Who are your top 3 competitors?

A: Yes, I do have some competitors, but there are not many competitors because my shop is located near a housing area.

Q: Is the business constantly facing strong competition from other competitors? What strategies have they used to compete with you?

A: There are no strong competitors as we take them as a healthy competition to our business

Q: How much capital is required to start this business? What, if any, specialized field of knowledge do you need to run this business?

A: It was about Rm75k. Yes, we need to know about the ingredients and master the skills of cooking the Bah Kut Teh to start the business.

Q: Generally, do you feel it is easy or hard to enter this market? Why?

A: During the time when I enter the market, it was still easy because there are not many competitors during that period of time.

Q: How do you compete with your competitors (i.e.) what strategies do you employ to divert customers away from your competitors?

A: There were no special strategies used to attract customers. As long as the customers are satisfied with our food and services, I believe they will visit again.

Q: How often do you release a new product (this assumes the business sells differentiated products)?

A: For this kind of business, there wasn’t much option on the food, but we do sell some other side dishes which include Ong Bak and Lu tofu to eat along with the Bah Kut Teh.

Q: Are your pricing decisions strongly affected by your competitors?

A: Not really, even though the price of Bah Kut Teh per bowl is fixed, but our business sells a slightly different product.



Q: How has technology such as computers and the internet, impacted on how you conduct business?

A: Ever since technology came into the market, it had loosened up our work as we now use iPad to order food and billing.

Q: Who do you seek advice from when you faced any problems?

A: I would mostly seek advice from myself and learn from relatives.

Q: Where do you see your business in the next five years? The next ten years?

A: I am planning to expand my business in few year times and hopefully everything goes well.

Q: What is your work background? Education? Work experience?

A: After I complete my high school education at Form 5, I started to work outside and I started this business at age of 25.

Q: Why is your business located on this site?

Q: The reason why I chose this location to run Bah Kut Teh business is because there is a big field in front of the shop and it’s naturally cold without air conditioning. Besides, there is also a lot of parking lots around the housing area.

Q: Why do your customers select you over your competitors?

A: Because the service provided is good, and the quality of the food is also nice.

Q: What are the biggest issues for running this business?

A: Sometimes during lunch hours, we faced the problem where we do not have enough workers and some of the workers are lazy. It is not easy to hire workers now days because they said that the working hours is long.

Restaurant Hock Chew (Batu Pahat)45



Q: When was the business founded?

A: It was first started in the year of 1984, I’ve been in this business for over 50

years in Batu Pahat.

Q: Who are the key founders?

A: The key founder of this shop was me myself.

Q: What prompted the founders to start this business?

A: My family prompted me to start this business as we can earn more money for a better life.

Q: How many employees do you have?

A: I did not have any employees, but I do have my wife and my daughter as my employees to run the business.

Q: What are your main products?

A: The main product sold is “Bah Kut Teh”. There are few types of side dishes which are Chinese dough, der Kah and salted veggie.

Q: Who are your customers?

A: There are various types of customers, which include students, some elder generations and tourists from overseas and other states.

Q: What is the business’ annual revenue figure?

A: It is about RM5, 000- RM 6,000 per month and roughly Rm66, 000 per annual.

Q: How many branch offices/ stores do you have (if applicable)?

A: There are no branches or stores as the shop for me to run this business is owned by other people.



Q: Can you provide us a brief history of your business and its most recent

developments?

A: At the very begging when I started the business in 1985, the business was going

smoothly. But during the year 1990-1993, the business was affected by 3 main

diseases which are H1N1, SARS and NIPAH virus.

Q: Do you have many competitors? Who are they? Who are your top 3 competitors?

A: Yes, I do have some competitors, but there are not many competitors because my shop is located in a rural area.

Q: Is the business constantly facing strong competition from other competitors? What strategies have they used to compete with you?

A: Yes, but I would take it as a daily challenge.

Q: How much capital is required to start this business? What, if any, specialized field of knowledge do you need to run this business?

A: The capital needed to start this business is about RM? To start of this business, you need to know the technique of making Bah Kut Teh and understand the usage of some ingredients which are wolfberries, dried dates, dried chilies and some herbals to cook the Bah Kut Teh.

Q: Generally, do you feel it is easy or hard to enter this market? Why?

A: During the time when I enter the market, it was still easy because there are not many competitors during that period of time.

Q: How do you compete with your competitors (i.e.) what strategies do you employ to divert customers away from your competitors?

A: The concept is easy when the customers like the taste of your Bah Kut Teh and most of the customers would help me promote mostly through their relatives. Other than that, I only used good quality of ingredients to produce the Bah Kut Teh so that it would taste nicer. Moreover, the price of the rice is also cheaper which is only cost Rm0.70 per bowl compared to other competitors.



Q: How often do you release a new product (this assumes the business sells differentiated products)?

A: For this kind of business, there are not much option on the types of food, but we do sell other sides which are salted vegetables and der Kah Chok to eat along with the Bah Kut Teh.

Q: Are you pricing decisions strongly affected by your competitors?

A: Yes, because the price of Bah Kut Teh per bowl is fixed at everywhere.

Q: Who do you seek advice from when you faced any problems?

A: I would mostly seek advice from myself.

Q: Where do you see your business in the next five years? The next ten years?

A: I personally do not think about it and would just go with the flow and also depends on the economics whether to expand the business or not.

Q: What is your work background? Education? Work experience?

A: I stopped my education after high school and involve in the food field business ever since I graduated after high school.

Q: Why is your business located on this site?

A: The reason why I choose this site is because of the rental is cheap compared to other shops.

Q: Why do your customers select you over your competitors?

A: In my opinion, as long the customers are satisfied with my good service and the food, they will definitely come again. This is also because the meat I sell is fresh and I do not keep it overnight.

Q: What are the biggest issues for running this business?

A: I would say that the biggest issues are due to unstable of the economics. The prices of the ingredients keep on increasing until today. Besides that, the rental of the shop increasing from Rm1500 to Rm2500, which has affected my business revenue.



APPENDICE 3

(MINUTES OF THE MEETING)

DATE: 27/11/15TIME: 12pm-2pmVENUE: Library event

hall

NAMES OF GROUP MEMBERS TUTORIAL GROUP ROLESLee Fong Yen Friday N/ALoo Siah Mong Friday N/AMelanie Soon Friday N/ASoh Yong Zhou Friday N/ADinh Minh Friday N/AOmar Layas Monday N/A

NO. ACTIVITY ACTION TAKEN BY1. Discussion about the brief and the assignment All members2. Research about the types of businesses

availableSoh Yong Zhou, Lee Fong Yen and Loo Siah Mong

3. Choosing the types of business Lee Fong Yen, Soh Yong Zhou, Dinh and Loo Siah Mong




DATE: 6/11/15TIME: 11am-1pmVENUE: Outside

library

NAMES OF GROUP MEMBERS TUTORIAL GROUP ROLESLee Fong Yen Friday Research/ReportLoo Siah Mong Friday Research/ ReportMelanie Soon Friday Video/ Presentation

SlidesSoh Yong Zhou Friday Interviewer/ ReportDinh Minh Friday RecordingOmar Layas Monday Presentation Slides

NO. ACTIVITY ACTION TAKEN BY1. The location and appointment for both

businesses confirmed.All members

2. Arranging transportation for the business out of Klang Valley.

Soh Yong Zhou, Lee Fong Yen and Loo Siah Mong

3. Sorting out duties to every group member. All members.4. Discussion about the preparation of

equipment needed during the interview session.

All members

5. Research on examples of interview questions All members




DATE: 14/11/15TIME: 2pm-4pmVENUE: Library event

hall



NO. ACTIVITY ACTION TAKEN BY1. Interview session for Batu Pahat business. Soh Yong Zhou, Lee Fong

Yen and Loo Siah Mong2. Attended interview session in Batu Pahat Soh Yong Zhou, Lee Fong

Yen and Loo Siah Mong3. Recording of interview session. Lee Fong Yen4. Note taking. Loo Siah Mong5. Interviewing the interviewee. Soh Yong Zhou




DATE: 6/11/15TIME: 11am-1pmVENUE: Classroom

D3.08



NO. ACTIVITY ACTION TAKEN BY1. Deciding on transportation to Klang Valley. Soh Yong Zhou, Lee Fong

Yen, Dinh Minh and Loo Siah Mong

2. Attended interview session in Klang Valley. Soh Yong Zhou, Lee Fong Yen, Dinh Minh and Loo Siah Mong

3. Recording of interior session and taking photographs.

Dinh Minh

4. Taking notes and related information to the business during interview.

Lee Fong Yen and Loo Siah Mong

5. Interviewing the business owners. Soh Yong Zhou





library



NO. ACTIVITY ACTION TAKEN BY1. Discussion on the content for the report All members2. Delegation of tasks:-

History of trade-Soh Yong ZhouRecommendations and comparative Analysis-Lee Fong Yen Appendices and photos-Loo Siah MongArtistic cover- Dinh MinhVideo Editing- Melanie Soon

All members

3. Deciding the finishing date of the report All members





library



NO. ACTIVITY ACTION TAKEN BY1. Compilation of report All members2. Overall checking of the report. Soh Yong Zhou, Lee Fong

Yen and Loo Siah Mong3. Doing more research on incomplete

informationAll members

4. Video Editing Melanie Soon5. Decide content to be presented in the slides All members



REFERENCES

Depaul University (n.d.)-Examples of Small Business Interview Questions, Retrieved on 26th October 2015 from http://condor.depaul.edu/pkemp/businterviewq.htm

Economics Online (2015)-Monopolistic Competition, Retrieved on 13th November 2015 from http://www.economicsonline.co.uk/Business_economics/Monopolistic_competition.html

Economics Online (2015) - Oligopoly, Retrieved on 13th November 2015 from http://www.economicsonline.co.uk/Business_economics/Oligopoly.html

Facebook (2015)- Restaurant Swee Xiang, Retrieved on 7th November 2015 from https://www.facebook.com/pages/Restoran-Swee-Xiang/208096622552839

Han’s Bak Kut Teh (2012)- History of Bak Kut Teh, Retrieved on 7th November 2015 from http://hanjiabkt.com.sg/?page_id=101

Damien L. (2015) - Bak Kut Teh, Retrieved on the 11th November 2015 from http://eresources.nlb.gov.sg/infopedia/articles/SIP_1800_2011-03-18.html

Openrice Group Inc (2015)-Thong Wei Restaurant, Retrieved on 7th November 2015 from http://my.openrice.com/klangvalley/restaurant/thong-wei-restaurant-port-klang/287749



http://my.openrice.com/klangvalley/restaurant/thong-wei-restaurant-port-klang/287749

http://my.openrice.com/klangvalley/restaurant/thong-wei-restaurant-port-klang/287749

http://eresources.nlb.gov.sg/infopedia/articles/SIP_1800_2011-03-18.html

http://hanjiabkt.com.sg/?page_id=101

https://www.facebook.com/pages/Restoran-Swee-Xiang/208096622552839

http://www.economicsonline.co.uk/Business_economics/Oligopoly.html

http://www.economicsonline.co.uk/Business_economics/Monopolistic_competition.html

http://www.economicsonline.co.uk/Business_economics/Monopolistic_competition.html

http://condor.depaul.edu/pkemp/businterviewq.htm

Openrice Group Inc (2015)-Swee Xiang Restaurant, Retrieved on 7th November 2015 from http://my.openrice.com/klangvalley/restaurant/swee-xiang-restaurant-klang/21939

Old Street-Bak Kut Teh (2013)- History of Bak Kut Teh, Retrieved on 7th November 2015 from http://www.oldstreet.com.sg/the-history.html

PasangLang.com (2015)- Restaurant Lai Hing, Retrieved on 10th November 2015 from http://www.pasanglang.com/10-Must-Try-Bak-Kut-Teh-in-Klang--NON-HALAL--food-4484



http://www.pasanglang.com/10-Must-Try-Bak-Kut-Teh-in-Klang--NON-HALAL--food-4484

http://www.pasanglang.com/10-Must-Try-Bak-Kut-Teh-in-Klang--NON-HALAL--food-4484

http://www.oldstreet.com.sg/the-history.html

http://my.openrice.com/klangvalley/restaurant/swee-xiang-restaurant-klang/21939

http://my.openrice.com/klangvalley/restaurant/swee-xiang-restaurant-klang/21939

PRESENTATION SLIDES

