Strategic Planning of Ayam Cak Nga"s Company

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1.0 INTRODUCTION Strategic Planning is a broad process that can be address the entire business, or a portion of the business such as marketing. Marketing Strategies is derived from strategic plans. The purpose of strategic plans is to design by provide an organization, its divisions, departments or even individual player or a game plan to achieve specific goals and objectives. Planning process is a number of steps are involved in any strategic planning process, including a strategic marketing planning process. These include identifying the overall planning goal, selecting team participants, gathering data related to the internal and external environment, conducting a SWOT (Strength, Weakness, Opportunities, And Threats) analysis, developing specific objectives, creating strategies and tactics, and designing a measurement and reporting process. In many organizations, the overall strategic plan provides direction of the creation of sub-plans, including a strategic marketing plan. From the task given, we choose to interview Ayam Penyet Cak Nga. 1

Transcript of Strategic Planning of Ayam Cak Nga"s Company

1.0 INTRODUCTION

Strategic Planning is a broad process that can be address

the entire business, or a portion of the business such as

marketing. Marketing Strategies is derived from strategic plans.

The purpose of strategic plans is to design by provide an

organization, its divisions, departments or even individual

player or a game plan to achieve specific goals and objectives.

Planning process is a number of steps are involved in any

strategic planning process, including a strategic marketing

planning process. These include identifying the overall planning

goal, selecting team participants, gathering data related to the

internal and external environment, conducting a SWOT (Strength,

Weakness, Opportunities, And Threats) analysis, developing

specific objectives, creating strategies and tactics, and

designing a measurement and reporting process. In many

organizations, the overall strategic plan provides direction of

the creation of sub-plans, including a strategic marketing plan.

From the task given, we choose to interview Ayam Penyet Cak

Nga.

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1.1 “AYAM PENYET CAK NGA” HISTORY

“Ayam Penyet Cak Nga” was established by Ahmad Ashrof in

2015. Ahmad Ashrof was an engineering student with a business

family background, especially his father. He firstly entered the

food industry by selling his chicken rice at night market. Then

after a few years gaining profits, Mr. Ashrof opened his first

restaurant “Ayam Penyet Cak Nga”.

The restaurant provides specialize Ayam Penyet and Chicken

Rice for the customers. “Ayam Penyet Cak Nga” located behind

Mcdonald restaurant at No.1 Jalan Dagangan 7, Pusat Bandar Bertam

Perdana, 13200 Kepala Batas, Pulau Pinang.

Ahmad Ashrof opened “Ayam Penyet Cak Nga” due to his will to

introduced “Ayam Penyet” cuisine to the local people in Kepala

Batas. Besides, the main reason is there are no “Ayam Penyet”

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being sells at this area at the moment and he is the fan of “Ayam

Penyet”cuisine which is the main dish for Jawa people.

2.0 THEORY OF STRATEGIC PLANNING

John and Lee (2002) theorize that strategic planning is to a

business what a map is to a road rally driver. It is a tool that

defines the paths that when taken will lead to the most likely

probability of getting from where the business is to where the

owners want it to go. And like a road rally, strategic plans meet

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detours and hurdles that call for adapting and adjusting as the

plan is implemented.

Strategic planning is a process that brings to life the

mission and vision of the business. A strategic plan, well-

crafted and of value, is driven from the top down; considers the

internal and external environment around the business; is the

work of the managers of the business; and is communicated to all

the business workers, both inside and outside of the company.

While according to Kotler (2012), strategic planning is the

managerial process of developing and maintaining a strategic fit

between the organization’s goals, capabilities and resources with

an evolving of market opportunities.

The benefit of the discipline that develops from the process

of strategic planning, leads to improved communication. It

facilitates effective decision-making, better selection of

tactical options and leads to a higher possibility of achieving

the owners’ goals and objectives. There is no one formula or

process for strategic planning. There are however, principles and

required steps that optimize the value of strategic planning.

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2.1 STRATEGIC PLANNING IN AYAM PENYET CAK NGA

Interview by:

1. Abdul Hakim Bin Abd Halim

2. Nur Amalina Binti Zainon

3. Nur Faezza Binti Zaker Husain

4. Nur Shazni Shahirah Binti Saiful

5. Nurul Shuhada Binti Abd Hamid

Q1 : How did you start your business?

A1 : First of all, err.. I studied in an engineering course in

UIA. During my studies, I love to eat “Ayam Penyet”. In my

hometown, it is hard to found “Ayam Penyet” which is my

favorite. The owner of famous “Ayam Penyet” in KL teaches me

how to make special sambal for “Ayam Penyet”. The uncle gave

me encouragements to make my own meal of Ayam Penyet using the

secret recipe at my home. That is how I start my own business.

Q2 : Did you get any guidance from certain institution?

A2 : Many advice came from my father as he also involved in

business. Basically, I did not attend any series of lesson.

Q3 : When did you open your business?

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A3 : This business is recently open. Only open in 5 months.

Q4 : What is your marketing strategy?

A4 : I’m using Facebook as a medium and banner to promote my

restaurant.

Q5 : Did you have any special price for students to eat at your restaurant?

A5 : I did not make any special price for students yet as my

business only at the starting point. Therefore, tons of things

to be improved.

Q6 : What is your marketing target?

A6 : Actually my target are to the ones who adore Ayam Penyet

meal, but mostly of my customers are from family and at

usually at office hours, there were office worker who come to

my restaurant.

Q7 : What have you done so that your business is well-known by public?

A7 : I’m using flyers because it reduces the cost.

Q8 : What are the obstacles that you have been through along in this business?

A8 : The obstacles that I have been gone through is to manage

this business. Especially to me who does not have any

background in business.

Q9 : What is your business’s strength?

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A9 : The other restaurant with many types of menus. Other than

me who only introduced a famous menu as the main cuisine.

Also, I make a variety of Ayam Penyet and all my menus are

based on set. Because the set are more efficient in reducing

cost.

Q10 : How did you control your business on the product which is no longer

profitable?

A10 : I eliminate the menu that is unfavorable by the customer

and create the new menu. for example, I make “keow teow

kerang” and “mee goreng mamak” every evening starting 5pm

until 11pm, but because of the high demand from the customers,

I decided to make this dishes starting at 12 in the afternoon.

Q11 : What are your business operation hours?

A11 : Starting 12 noon until 11pm. Open for everyday except

Tuesday.

Q12 : How is your estimation income per month?

A12 : Well, it is a secret. But, what can I tell you is I have

enough to pay my workers and rent every months.

Q13 : Where did you get your basic capital from?

A13 : I only make loan from bank.

Q14 : What is your long-term objective?

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A14 : My long-term objective is to expand my business. My

Chinese friend asks me to open my business at the island side

of Penang as it is hard to find the delicious and cheap food

there. I’m looking forward for that.

Q15 : How much is your monthly rent?

A15 : Monthly rent is RM350-RM400.

Q16 : What is the meaning of “Ayam Penyet Cak Nga”?

A16 : “Cak” stands for brother. While “Nga” referring to

myself as Angah the second member in my family.

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2.2 DESIGNING THE BUSINESS PORTFOLIO

Directed by the business mission statement and objective,

management now must plan its business portfolio; the collection

of businesses and product that makes up the company .The best

business portfolio is the one that best fits the company’s

strengths and weaknesses to opportunities in the environment.

Business portfolio planning involves two steps. First, the

company must analyze its current businesses, should receive more

less or no investment. For instance, we can see Mr. Ashrof, the

owner of “Ayam Penyet Cak Nga” Restaurant analyze his current

business as the potential business to growth as it was the only

one restaurant that offer “Ayam Penyet” in Bertam, Pulau Pinang.

Second it must shape the future portfolio by developing

strategies for growth and downsizing. For developing strategies

in growth, Mr. Ashrof, the owner of “Ayam Penyet Cak Nga”

Restaurant identified the business growth through product/market

expansion grid. Product/market expansion grid consists of market

penetration, market development, product development or

diversification.

Market penetration is a growth strategy increasing sales to

current market segments without changing the product. We can

look in “Ayam Penyet Cak Nga” Restaurant, Mr. Ashrof implement a

reasonable and valuable price for its dish which is RM 7.00 for

one set of “Ayam Penyet Original” that includes a quarter of

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“Ayam Penyet”, Special Madura Sauce, Tempe, Tauhu, Ulam, Soup and

Rice.

Market development is a growth strategy that identifies and

develops new market segments for current products. For instance,

Mr. Ashrof develops new market segment for the chicken product

which is “Ayam Penyet”.

Product development is a growth strategy that offers new or

modified products to existing market segments. In “Ayam Penyet

Cak Nga” Restaurant, Mr. Ashrof used a special secret homemade

sauce in his Ayam Penyet’s recipes.

Diversification is a growth strategy for starting up or

acquiring businesses outside the company’s current products and

markets. Mr. Ashrof planning to diverse his business by prepared

delivery service for its customer.

While for downsizing is the reduction of the business

portfolio by eliminating products or business units that are not

profitable or that no longer fit the company’s overall strategy.

For example, according to Mr. Ashrof, the owner of “Ayam Penyet

Cak Nga” Restaurant, he had to eliminate porridge soup as it was

not profitable and demanding by his customer.

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3.0 CONCLUSION

Mr. Ashrof is taking the next level of business through the

effort of franchising his business by increasing the profits and

minimized the cost of production by planning, organizing and

controlling.

From the interviewed, we can see that Mr. Ashrof have been

promoting his restaurant via internet such as Facebook for

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marketing. Mr. Ashrof also minimize the cost production by

offering set-menu rather than buffet style which can cost him

lots of expenditure for the restaurant. Besides that, Mr. Ashrof

have introduced others cuisine for his restaurant such as western

cuisine for dinner due to high demand from his customer

especially among young-adults and children range.

Therefore, we can make Mr. Ashrof as an example of

successful businessman that started from selling food at night

market to a restaurant in few years and one day will become a

franchise restaurant in Malaysia.

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4.0 REFERENCES

John F. Dix and H. Lee Mathews Research, “The Process Of

Strategic Planning” (August 2002).

Philip Kotler, Gary Armstrong, 2012, Principles of

Marketing, 14th ed. New Jersey: Pearson Education.

Salah S. Hassan Stephen Craft Wael Kortam,

(2003),"Understanding the new bases for global market segmentation", Journal

of Consumer Marketing, Vol. 20 Iss 5 pp. 446 – 462. Permanent

link to this document:

http://dx.doi.org/10.1108/07363760310489670.

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5.0 APPENDICES

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The registration certificate of “Ayam Penyet Cak Nga”

Restaurant

Shaz, Faezza, Syud

and Hakim with

the owner of “Ayam

Penyet Cak Nga”

Restaurant ; Mr.

Ashraff

Shaz, Faezza, Syud

and Amal with Mr.

Ashraff.

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Us capturing a

picture while

waiting Mr.

Ashraff for

prepare his special dish.

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Mr. Ashraff , the owner of “Ayam Penyet Cak Nga”

“Ayam Percik” one of the menu

Decoration of the restaurant

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“Ayam Penyet

Original” the main

dish

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The inside menu of “Ayam Penyet Cak Nga” Restaurant

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