jannah jaya

JANNAH JAYA ENTERPRISE – Restaurant and Caterer

CASE STUDY:

Issues and challenges and key success factor in SME in

Malaysia:

- Focus on fabricated metal, food, etc.

Done By : Mohd Shafie Osman (GP 01615) 1


ABSTRACT

Small and Medium Enterprises (SMEs) play an important

role in the development of Malaysian economy, their

contribution to national economy is still relatively small. The

Government has made the development of SMEs as a high

priority area with a string of development agendas but SMEs

still face a lot of challenges and obstacles that deter them

from further expanding their business. These obstacles

includes lack of managerial capabilities, shortage in financing

and human resource and this increases the need for value

creation among SMEs to ensure business sustainability which

coexists within an environment of good corporate governance.

This study examines the usage of accounting tools and

professional services amongst SMEs. Objectives of this study

are to identify the type of business advisory services

purchased and gauge SMEs’ level of satisfaction on these

services, to determine how the business advisory services

purchased has helped SMEs in achieving competitive

advantage or success and to identify opportunities in providing

specialized assistance to SMEs in areas where they lack

certain skills. They tend to seek for assistance in marketing



strategy on how to market their products in terms of branding

and promotion to increase their competitiveness in getting

investor or funder to help the growth of the business. Apart

from that, the SMEs need help in accounting services as to

help them delve more into their financial strength in order to

provide a better understanding of their financial position. SMEs

in the “global enterprise” stage generally were satisfied with

the level of quality services given by SMPs. They tend to need

assistance from the SMPs to assist the company to become a

public listed company and also to penetrate into the

international market. Findings also show that, SMEs in both

stages of growth faces challenges in tax planning and they

need to be equipped with the latest management tool to help

improve their business performance.



1.0 INTRODUCTION

Small and Medium Enterprises (SMEs) play an important

sub-sector in the Malaysian economy and is considered as the

backbone of industrial development in this country. An

enterprise is considered as an SME based on annual turnover

or on the number of full-time employees.

In 2010, there were 523.132 organizations in the

manufacturing, services and agriculture sectors, and 518.996

of this total (99.2 per cent) were SMEs (SMIDEC, 2011). In

terms of distribution by industry, SMEs mainly in textiles and

clothing as well as resource-based industries. Textiles and

clothing accounted for 23.2 percent of the total SMEs, followed

by food and drink (15 percent), metals and metal products

(12.4 percent) and paper, printing and publishing (9.2

percent).

In contrast, the 451,516 establishments in the service

sector, 449,004 (99.4 percent) of the amount is made up of

SMEs. Of the total SMEs, 69.3 percent in distributive trade

(wholesale, retail and restaurants), followed by transport and

communications (6.2 percent), financial sector / banking (4.3

percent) and professional services (2.5 percent).



In agriculture, from 32,397 active companies, 32,126

(99.2 per cent) were SMEs. Of the total SMEs, 65.8 per cent in

agriculture, marketing and farming, followed by fisheries (20.9

percent), poultry (6.9 percent) and agriculture and animal

husbandry services other (4.8 percent).

SMEs play an important role in the Malaysian economy in

terms of output value, the additional market, labor and

exports. In 2011, production of the SMEs recorded an average

annual growth rate of 5.3 percent which contributed to the

increase in total manufacturing output from 22.1 percent in

2005 to 29.6 percent in 2011.

2.0 JANNAH JAYA ENTERPRISE



2.1 The company

Jannah Jaya Enterprise (thereafter referred as Jannah

Jaya) is one of the pioneer Bumiputra companies that cater

food restaurant in Merlimau Melaka since 1981. This is the

family businesses which will be heritage from one generation

to the next generation. Besides cater the foods to local

communities, the company’s core business nowadays includes

catering services to any function or event around Melaka.

Jannah Jaya now are trying to penetrated to the Singapore

market, with its food restaurant and catering services.

2.2 Getting sales: Overcoming obstacles and

venturing into new management

Just when Jannah Jaya was experiencing growth in their

business, they were hit with another letdown. On 1992, they

encountered a big problem. The company’s first owner En.

Zainal was encounter with heart attack and sadly informed

that he passed away. That incident affected the company so

badly when nobody from his families were willing to take over

his business because his first son was at the final year studied

in UiTM in pastry course. So his wife at that time with full

support from other families members continued Mr. Zainal

business while waiting his son Adnan finished his study. At that

time the business is nearly closed down. However, at 1993,

Mr. Adnan finished his studied and with his commitment and



perseverance, he managed to pull through and return to the

market in 1994. When they returned, they managed to

achieve another success which was venturing into the 24

hours restaurant with 7 days a week operation. Thus, it took

Jannah Jaya ten year,s before their restaurant could finally be

operated with 3 franchises around Melaka. With their quality

and consistent services Jannah Jaya always received tender for

catering at formal function and event which involved

government function for important and famous guesses in

Malaysia. Since 2005, they maintain received Grade A

restaurant for cleanliness and food handling from local Health

Department awards. Jannah Jaya may be a small SME, but it

is not too small to recognize the importance of Corporate

Social Responsibility.

Since 2008 they have accepted Polytechnic students

from course hotel and catering to undergo their practical

training in their restaurant. Jannah Jaya has provided a

platform for students to practise what they have learnt in the

classroom. Besides that, En. Adnan also accept disable people

from Welfare Department to work at his restaurant to show his

contribution in social responsibilities.

2.3 To the new franchise: Expansion and Growth

On 02.01.2013 Jannah Jaya has launched their third

franchise in Melaka. Presently, their main restaurant is handles



by En. Adnan’s wife Pn. Norhayati. Their second branch is

conducted by En. Adnan himself and finally with their proud

and happily, their third franchise is now conducted by En.

Adnan first sons En. Amin with the age of 22th. Now, Jannah

Jaya is slowly landing to their third generation.

With all the expansion and growth, Jannah Jaya is

advancing towards achieving its vision of being a successful

Bumiputra enterprise in the food services. Up till now, the

company is operating its business with 75 permanent workers

and 100 part time workers based on demand for catering

services. Jannah Jaya company now operated with 5 objectives

which are as follows:

• To increase the economy of Bumiputra people

• To produce high quality foods for customers

• To be the best example restaurant in food handling

procedures

• To prove that local Bumiputra restaurant are also able to

develop and produce homogeneous and quality food

products

• To maintain the recipe of Melaka heritage



However, lately there have been many new restaurant and

catering that have penetrated the local market which made

the competition stiffer.

2.4 Factors for Success: Effective marketing

strategy, product rebranding and

government support

There are a few factors that have contributed to the

success that Jannah Jaya is enjoying today. One of the internal

factors is their effective marketing strategy of going to attract

big companies or individuals to get trust from them to give

Jannah Jaya chances to supply foods and conducts the catering

for their important event such as government event, wedding

function, organization function and personal individual event

such as birthday party or anniversary party. They uses variety

of marketing strategy. Some of them are;

1)Through electronic medium.

Jannah Jaya has advertise their business at Melaka Radio. En.

Adnan also has attended live interview by the Melaka Radio

three time a year.

2) Through published medium

Jannah Jaya has assigned private company to distribute

their pamphlets and brochures regarding the restaurant and



catering services once a week. Thus, Jannah Jaya also will put

their banners at the strategic places around Melaka to attract

people. They also advertise their restaurant and services in

Melaka 2U magazine that will be published once a month. This

magazine will be distribute to all houses in Melaka with motto

“one house one Melaka 2u”

Next, Jannah Jaya rebranding their services by choosing their

team colour which is orange colour. Through this all the

restaurant signboard, banners, fliers, and also the company

uniform will uses the orange colour. This strategies are really

give the big impact to the company sales. Since they use this

strategy, the company sales increases rapidly.

Next, in order to get the government support, Jannah Jaya will

joint any SME exhibition conducted by government. Instead of

getting consumers awareness, through this, they also get the

government awareness. The company has getting many

financial support from the government. They uses all the

financial support to expand their business by buying the new

kitchen tools and do the restaurant renovation. In addition,

when Jannah Jaya participated in exhibitions, they managed to

meet people from the media who requested for an interview

with them. The company agreed to take the opportunity as it

was a free promotion for them. As a result, their appearance

on the media helped boost their sales. With this, more



customers will be aware of their business. By supplier the best

quality of foods and services, plus the comfort restaurant for

customers, and present the good image, Jannah Jaya

Enterprise are getting to the pick of mountain now.

2.5 Challenges Ahead

Like any businesses, Jannah Jaya too has had its fair

share of ups and downs in its business venture. The increases

of new companies that offer the same services has gave them

a serious stress to maintain their business. Jannah Jaya has to

compete with the quality of food, the best services, and the

most important things in the reasonable prices. Until now,

Jannah Jaya is the popular restaurant at Melaka which offer the

cheaper prices of ready foods.

However, the Malaysian economic situation today, is not

certain. The gross prices which always change, will affect the

company profit every months. Jannah Jaya overcome this

situation by dealing with the direct seller without involving the

intermediate supplier in order to get the cheaper prices of

gross foods.

Besides that, Jannah Jaya also facing problems with the

product quality issue. As economic country growth well, there

are many factory are launched. Therefore many skilled



workers especially young workers switched their job to factory

sectors. This situation really gives impact where’s Jannah Jaya

faced the difficulties to maintain their foods quality taste. This

is because, they need much time to train the new workers to

become skilful workers.

Furthermore, it was also very difficult for them to obtain

bank loans as banks were very strict in providing loans to

SMEs. The banks required a lot of supporting documentations

and collateral to back up the loan. Therefore, it was indeed a

very big challenge for SMEs like Jannah Jaya to obtain funds to

expanded their businesses.

3.0 Bibliography

http://listings.allhalal.net/content/aj-food-industries-m-sdnbhd

http://en.wikipedia.org/wiki/Small_and_medium_enterprises

http://www.smecorp.gov.my/v4/node/14

4.0 Picture Attachment


http://www.smecorp.gov.my/v4/node/14

http://en.wikipedia.org/wiki/Small_and_medium_enterprises

http://listings.allhalal.net/content/aj-food-industries-m-sdnbhd


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