INTRODUCTION OF JERUK MADU PAK ALI COMPANY

Pak Ali Food Industries Sdn Bhd is a leading manufacturer of fruits pickles in Malaysia, well
known of their uniqueness of taste and special aroma in the name of Jeruk Madu Pak Ali. Jeruk
Madu (honey pickles) produced, was made from different types of quality fruits freshly chosen
from the farms. The savory taste and high nutrition product is the outcome of combination
between traditional recipe and the modern technologies from the Institut Penyelidikan Dan
Kemajuan Pertanian Malaysia (MARDI).

Jeruk Madu Pak Ali product had gain the HALAL certificate from the Jabatan Kemajuan Islam
Malaysia (JAKIM), Mesti certificate from Kementerian Kesihatan Malaysia and 1 Malaysia
Best certificate from Lembaga Pemasaran Pertanian Persekutuan Malaysia (FAMA).

The production of the pickles was run by the factory which is located in Kawasan Perindustrian
IKS Perda Tasek, Simpang Ampat, Seberang Perai Selatan, Penang since 2009. Through this
pickles factory, the tourist and customer can by themselves on how the pickles were made,
besides be able to buy the pickles and other product of Pak Ali Food Industries and also any
other local foods and goods.

Jeruk Madu Pak Ali pickles are increasingly popular as souvenirs of Penang. It has become a
must for tourists visiting Penang, to get Jeruk Madu Pak Ali as gifts to relatives and friends.
Jeruk Madu Pak Ali is currently in demand by all levels of society. The pickles were produced
in a clean, safe and close, plus it tastes so good and tasty, making it the choice of many products
in Malaysia.

Perhaps few people know Jeruk Madu Pak Ali hails from Penang, but certainly most of us do
not know the origin of its establishment. Jeruk Madu Pak Ali Company begins since 1985 on
a small scale at home, founded by Hj. Ali Omar. Commercially introduced in 2007, under
Kunci Kreatif , starting with a capital of RM 15,000 now has a working capital of more than
RM 300,000. In addition, Jeruk Madu Pak Ali is the only factory that produces local fruits
pickles.

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Product (pickles) under the guidance of Penang Regional Development Authority (Perda),
Ministry of Agriculture (MOA), Ministry of Agriculture, FAMA and MARA. The resulting
pickles require leased directly from farms like sala mango farm in Perlis. Results of commercial
citrus yellow like mango, mango sala, green kedondong, yellow kendondong, papaya, guava,
honey sala, nutmeg Penang, nutmeg Sagat, cermai, sackcloth, kelubi, ,grapes and sengkuang
is able to generate the local economy. There are over 30 types of fresh citrus and 50 dried
pickles. Also there are products to make traditional fruit salad ( acar buah).

In terms of production, it has been enhanced with a number of improvements in the production
process. This is to ensure the quality of the products can be made in full despite the increase in
production activities, together with the increasing demand from customers. Packaging products
are now made in air-conditioned rooms. Employees involved also wear masks and gloves
during the packaging process is carried out. Sugar solution is made by using filtered water, then
boiled and cooled to a temperature of 70 degrees before it is used. The sugar content is
measured with an engine Gato Digital refractometer. In addition, all employees of each division
will be through "Staff Dressing Rooms" in advance each time before starting the job. In this
room workers will change ordinary clothes to the employee uniform wearing shoes, apron, shirt
and a head scarf provided. Employees also will wash their hands perfectly every time before
getting in and out of the workplace. The Operations Manual and "Standard Operating
Procedure" is also available for workers.

Other than that the salt leaching process of fruit that has been cut was also been upgraded. To
ensure that the cleaning process can be carried out effectively, the fruit was put into dry labelled
cask.The washing process using clean water (from Water Supply Department) were screened
several times until the salt disappears. The measure of the salt content is checked by using
Alpha Master Gato refractometer measurement. Customers can also witness the pickles
processing activities at the gallery provided. These include fruit-cutting activities, cleaning and
packing of pickles. To facilitate the customers, Pak Ali Food Industries also provides a special
area for briefings or explanations to customers who come in groups. Also provided is a prayer
room (separate for men and women) and also comfortable toilets. Indoor parking area is also
available here, all of it is for the convenience of customers.

Jeruk Madu Pak Ali differ from other pickles company as they use only fine sugar (tiada ibu
gula) to sweetened up the syrup. And it is added with natural honey as a unique flavor. The

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pickles are produced using apple cider vinegar which is good for health and beauty. The most
significant is that whoever consume Jeruk Madu Pak Ali will not cough and having sore throat,
like other pickles we bought from the market. Moreover, the juice can also be drank. Jeruk
Madu Pak Ali also can last for a maximum of four months. The only company in Penang
pickles that have halal certification from JAKIM.

Pak Ali also create opportunities to retailers and distributors. He practiced the concept of direct
sales to customers, "try first before buying". Distributor , dealer and retailer are very welcome,
with the capital in the range of RM500 (40kg orange), the profit can reach of 40% to 50%.
There are more than 30 products (pickles) wet and dry. Distributor or dealer were also given
the freedom to determine the method and manner of sale, and if it involves the rental of a site
on the lease of the business premises is the responsibility of the distributor or the dealer himself.
Jeruk Madu Pak Ali also has a huge potential market in the Klang Valley, South and East Coast,
as the product is fresh, clean and halal. In addition, Jeruk Madu Pak Ali also issued Kuah Rojak
Pak Ali. After Pak Ali died in 2013 due to a stroke, which also restricted his movement, the
legacy of its business is now managed by his son, Elias Ali and his family.

VISION: :
To be a leader in the production of food and beverages in Malaysia halal products based on
fruits and food heritage of the Malaysian society.

MISSION :
1. Achieve continuous net profit of at least 15% per year
2. Combines technology, engineering and innovation in product development and continuous
improvement in line with customer wishes
3. Developing the market in Malaysia through smart partnerships between distributors and
honey orange pack ali
4. Creating a culture of competitive and innovative by adopting "lean organization" effectively

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GOALS AND OBJECTIVES :

1. To developed products throughout Malaysia through intensive marketing research and

partnerships with customers.
2. Cooperate with all government agencies and departments to ensure that new products
and standards can be developed along with customer demand.
3. Continue to do research on the product manufacturing process through R&D and cost
savings project to ensure that consumers get the product at minimal cost.
4. Make sure the company is financially strong and stable with the use of effective cost.

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QUESTIONAIRE OF INTERVIEW

1. From which source of profits earned by the company?

From the business through the budget about 40% of sales are transacted.

2. Are the company's financial stable?

Alhamdulillah, so far our company is stable and almost every year the company's profit is
increasing.

3. What is the strategic planning to achieve the company's goals?

Strategic planning to achieve the company's goal is to increase the quantity of pickles
production in each year. Total production will increase 2 times per year. Also for this year we
need to increase our production to 3 times from last year as we will export our product to
overseas.

4. In order to achieve the company's goals, what is the role of the manager?

The role of the manager is to make sure each processes to run smoothly. The Manager is also
responsible as the watchdog for workers in each unit to ensure the work will be more systematic
and smooth.

5. How does the company deal with the shortage of stock?

We always 'update' what is done by the employee for each unit. In addition, Mr. Ali also collect
information from the Operating and Marketing for the smooth production of pickles can keep
under control. We also have an agreement to lease some farm to ensure our stock to always
available.

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6. How do managers communicate with their subordinates (employee)?

How managers communicate with subordinates is to hold a meeting once a week to all heads
of sections. They will be given one month to discuss if there is any problem. If still unresolved,
the manager himself will come down to see the prevailing situation.

7. What are the challenges and actions of the company in achieving the goal?

The challenge is to achieve the goal is to manufacture quality pickles. In addition, there is no
factory in Malaysia's to be famous or on top of the business. Therefore, the company making
the action by sending juice to the lab for quality assurance in order not to generate acidic
pickles. It is also to avoid skin allergies. In addition, the challenges faced by jeruk Madu Pak
Ali is how to increase the shelf life of the honey pickles. Therefore, Jeruk Pak Ali makes
cooperation with MARDI in using technology for durable.

8. How can managers overcome obstacles in communication?

Manager overcoming obstacles in communicating with frequent meeting (meeting) for

managers with employees. In addition, the allowance for each employee phone like a walky
talkie. The boss also see for themselves how their employees work indirectly facilitate
communication with superiors and subordinates.

9. How will employees be trained?

Employees are trained through technical courses. Standard Operating Procedure (SOP) to
familiarization with government employees. Employees also participated in the special care
such as food hygiene, took the vaccine and get recognition. Employees also been briefed with
discipline while working, cleaning and use of the machine.

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10. How do you motivate employees with low incomes?

Low-income workers were motivated by Islamic way. Workers should be grateful for what is
given by the company as their reward(rezeki). In addition, employees are sent to classes where
the woman work in the morning while the man in the evening. In addition, workers are exposed
to religious talks in improving real intention to work again. Employees need to attend the
inaugural lecture of the month. Some of the privileges granted to high performing employees
such as:
1) low-income workers receive bonus every 3 months.
2) Employees brought to perform umrah every year in accordance with the employee's
performance.
3) Provide annual bonus.
4) SOSO Insurance Fund.
5) vacation overseas for the superior and subordinate officers brought to the family day
program.

11. How does manager plan to strengthen an organization?

For this, manager tend to solve the conflict between workers arising from the workers
themselves. In addition, manager will ask the employees to tell or share their problems.
Cooperation between manager and worker are very important as they lead to a better result in
the future for the company.

12. What are the characteristics of effective teams in an organization?

The characteristics of effective teams in an organization is a compromise between manager and

workers. In addition, no differences in communication standards regardless of whether
superiors or subordinates.

13. What are the specific goals or objectives MBO of this company?

Specific goals and objectives MBO of this company is to develop products Pak Ali throughout
Malaysia through intensive market research and partnership programs with customers. In

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addition, working closely with all government departments and agencies to ensure the latest
products and standard code can be developed in line with customer demand to be always
continued.

14. Does the MBO objectives effect the growth of this company?

Yes, MBO objectives effect the company in line with the vision to develop foods that have
been set. Jeruk Madu Pak Ali has grown from its original low quality pickles and there are no
consumer preferences. They overcame this problem by using technology for long life for about
one year in a special container to be export to oversea.

15. How do you compete with other company as there are a lot of company trying to run
a similar business as yours nowadays?

Actually, Mr. Alias are very close with our competitors in the industry, such as Jeruk Al-
Ghazali and Jeruk Pak Nasir. Recently, we had a holiday to the Maldives and China, and all
competitors were invited there to work if there are any problems. Although some of them were
envy with us, but all this happen as God wills.

16. Describe the opportunities and threats facing by the company.

Chinese citizens are increasingly expanding and halal food is insufficient and difficult to
obtain. Their leader try to find out for the solution as the citizen wants halal food. They sent a
representative to Malaysia and the first state selected was the Penang. Penang had been
declared as the most delicious food and halal in the world and that is what attracts them. Pak
Ali invited all companies that produce a halal food products to gather there. As a result, the
Company Jeruk Madu Pak Ali has a chance to break into the Chinese market. On entering the
Chinese market, Jeruk Madu Pak Ali was the 3rd store that finished sold out their products. The
threat faced is supply of raw materials for the manufacture of pickles is very dependent on the
local fruit. For example, government agencies, farmers' organizations, FAMA, the department
of agriculture, farmers and villagers.

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17. Describe the strengths and weaknesses of your company compared to other
companies.

Jeruk Madu Pak Ali has been in operation for nearly eight years where the quality are a lot
better than other companies. In addition, the brand is already known almost all over Malaysia.
Jeruk Madu Pak Ali was also the first pickles product in Malaysia and the first to get halal
certificate from JAKIM. As was said earlier, the disadvantage faced is the source of raw
materials.

18. Sometimes there are internal problems such as worker strikes. How do you overcome
the problem?

We solve the problem of breaking down before the workers on strike. For that, we often
communicate with employees if they have any problems. If unresolved, workers and managers
will discuss these issues together. So far we have never experienced the problem of worker
strikes.(mogok).

19. How does the manager embrace the spirit of unskilled the labor?

Employees are trained to be the best. If there are any problems, we will try to solve them as
soon as possible. Employees who work here are among the SPM school leavers and graduates.
Therefore, employees and manager will be mutual help to each other in the mastering the skill
of work.

20. How do managers determine the difference between actual performance and planned
objective?

We are not too concerned with this matter as the main focus is how to achieve the goal by
providing assistance to others. For example, the coffee shop established here. Now, the growing
of coffee shop like Starbucks, Black Wood and so on, but all that does not belong to Muslims.
Thus, the outbreak of the idea of setting up a coffee cafe here because employees are also
interested in coffee besides being our supporting income for the company.

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21. Is there any improvement had been made in term of increasing workers salary and
production of pickles?

Yes there is. We have change our term of paying salary according to contract that have been
made. Before this, we paid salary by month, but now we pay the workers salary by calculating
the weight of fruit that have been cut into smaller pieces per day. So, our production of fruit
pickles can be multiple and the workers can improve their income.

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CONCLUSION

On completion, the company that we chose, Jeruk Madu Pak Ali has a lot of advantages over
other companies. The company is a producer of local fruits pickles in Malaysia. Jeruk Madu
Pak Ali products have an approval of Halal Certification from JAKIM. Now, Jeruk Madu Pak
Ali has received widespread coverage from the media and well received in countries such as
China ,Korea, Thailand, Ireland and Australia. Jeruk Madu Pak Ali have their own fans.
Although, this pickles can be found throughout Malaysia but they are also willing to come to
Penang just simply want to buy fruit pickles. The process of producing the pickles from the
combination of traditional recipe and modern technologies create an awesome taste and that
will make who ever try it will love the pickles so much.

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REFFERENCES :

Interview session:

1. En. Elias bin Ali (son of Pak Ali, owner of Jeruk Madu Pak Ali Company)

2. En. Mohd Shahrul Nizam bin Shahidin (Administrative and public relations executive
of Jeruk Madu Pak Ali Company)

Internet :

1. http://www.jerukmadupakali.com/profil.html

e-Mail :

1. [email protected]

Location of Interview session :

Pak Ali Food Industries Sdn Bhd

Lot 420-421, 652-655, Kawasan Perindustrian IKS Perda Tasek, 14120 Simpang
Ampat, Seberang Perai Selatan, Pulau Pinang.

TEL / FAX : 04 588 3781

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