SMALL BUSINESS MANAGEMENT

TASK 4 - ASSIGNMENT 2 (20%)

Name: Ogbuehi Chikadibia

Matric no: B18202042.

A Review On Julie’s Manufacturing SDN BHD; A Local SME In Malaysia.

A number of developments in the Malaysia Economy were observed since 2005 (SME
Corporation Malaysia). These included Inflation in Prices, Structural Changes in the Economy as
well as evolving business trends. Thus, in 2013, a Review of the Definition of SMEs was
adopted, and such New Definition was signed at the 14th National Skill Development
Corporation (NSDC) Meeting in July 2013 (SME Corporation Malaysia). As indicated below,
Sales Turnover and the Number of Full-Time Employees are the Two Main Criteria used in
determining the Adopted Definition which covered all the sectors including Manufacturing,
Agriculture, Construction, Mining and Services. Thus, in the Manufacturing Sector, SMEs are
defined as firms with Sales Turnover not exceeding RM50 Million OR Number of Full-Time
Employees not exceeding 200, while in Services and Other Sectors, SMEs are Defined as Firms
with Sales Turnover not Exceeding RM20 Million OR Number of Full-Time Employees not
Exceeding 75 (SME Corporation Malaysia).

Julie’s Manufacturing SDN BHD is a Local Biscuit Manufacturing Company in Malaysia

(UKEssays 2018). It was established as Perfect food in 1981 and located in Alor Gajah, Melaka
with the Leader being Mr Su Chin Hock. At first, the company’s Biscuits were Marketed by
Wholesalers before Sai Ah Sai and Su Chin Hock became the Major Shareholders of the
Company in early 1984. Six years later, the Company was expanded with up to 8 branches in the
whole of the Peninsular Malaysia. Thus, Perfect food adopted the name ‘Julie’s as the Brand
Name in 1987 for the sale of the Company’s Products. The Julie’s Products were introduced for
the first time into Malaysian Supermarket in 1988 at Parkson Grand, Johor Bahru when Peanut
Butter Sandwiches became popular (UKEssays 2018). Some of its known products included
Chip Choco, Chocomore, Treasure, Le-Mond, Hershey's, Oat 25, Wheat Crackers, Butter
Crackers, Golden Crackers, Cheese Sandwich, Love Letter, Peanut Butter Sandwich and Rich
Tea Oat. The Company became the Largest Exporter of Biscuits in Malaysia in 2016, marketing
its biscuits in 75 countries, and the Xurrent Director of Julie’s manufacturing Sdn Bhd is Martin
Ang (TheStar 2014).

The Successes of Julie’s Manufacturing were not achieved without any major challenges.
The Company Faced Challenges in areas due to Organizational growth. One of Such Challenges
arose from the fact that the Company runs on a Multicultural Workforce; a Big Challenge to
Building a Strong Culture. This means that the Company employs both local workers, and also
some foreign workers. With very few nationalities; some from Vietnam, and some from Nepal,
this became a Big Challenge. This Challenge was however circumvented when the Company
tailoring its training methods towards supporting all the staff. For example, since the workers
speak different languages, strategies were provided such that for example, Nepalese were made
to provide training to the Nepalese Staff, to ensure that we’re all one big family. In this way, this
problem was solved.

Another Challenge faced by Julie’s Manufacturing SDN BHD was in the Areas of
Competition and Pricing. There are many other Companies involved in biscuits manufacturing
such as Munchy’s and Krafts, and this created a lot of competition. The Price of Julie’s Biscuit is
evaluated as slightly expensive in east Malaysia compare to Peninsula Malaysia. This is because
the Manufacturing Company of Julie’s Biscuit is located at Melaka. The products distributed to
Eastern parts of Malaysia such as Sabah and Sarawak need a Sole Distributor to act as an Agent,
and this involved some transportation fee before arriving to the end-user. Thus, small quarter of
charges will be added on the product. Although the price is slightly higher compared to other
manufacturers, the Consumers in East Malaysia are able to experience a high-quality product,
that is, Julie’s ensures that the products also have high quality to march the high prices. Thus,
Julie’s biscuit is using Profitability Approach as the Pricing Strategy, and In this Strategy, the
ensure that the Chosen Price largely cover the Variable Costs and Fixed Costs used in the
Production and Operation of the Company while bringing tremendous Profits and avoiding any
Losses. Julie's applies a Competitive Price Strategy in the Pricing since Julie’s Biscuit is placed
at the Pure Competitive Market. This Strategy is aimed at Reducing the Emphasis on Price
Competition by Matching other Companies’ Prices and to Stay Competitive in the Market. They
have slightly different in Price between the Competitors, but still within a small range. Even
though Julie’s Biscuit is using Competitive Price Strategy, the Marketers still Ensures that the
Price Setting is Profitable to the Company.

The Company also faced Challenges in the Distribution. This is so because it was
Established in a Single Location; Melaka. However, this Challenges was taken care of when the
Company Expanded to more Locations within Malaysia and for which the Subsidiary Company,
Julie’s Marketing SDN BHD was establish, with about 6 Branches Strategically Located
throughout Peninsular of Malaysia to Cover the Whole Country, both Urban Areas as well as
Rural Areas. This Helped to Save a Great Deal of Money Because by Having Its Own
Distribution Division, They do not need to Pay Higher Cost to outside Vendor with very High
Charges for Distribution Services.
However, Due to Problems of Distance, Julie’s Biscuits are Distributed by TLS Marketing
SDN BHD for Sabah and Sarawak. Julie’s Manufacturing is still Expanding by Widening its
Brand Presence in European Markets and Wal-Mart Outlets in order to be one of the Leading
Brands in the International Arena. Thus, Julie’s Products are Being Exported to more than 50
countries Since 2005. These include countries such as in the Middle East, Japan, Taiwan, China,
Mongolia, Bhutan, Nepal, Bangladesh, India, France, Spain, Portugal, Pacific islands, Indian
Ocean islands, South Korea, Africa, the US, Canada, New Zealand and Australia.

The Journey of Growing the Biscuit Maker was not always smooth sailing. In 2008, the
Company suffered a major setback due to a Food Contamination Crisis as Melamine-tainted
ammonium bicarbonate (a rising agent for baked goods) from one of its suppliers in China got
introduced into its products (TheStar 2014). Thus, more than RM10mil were Lost Due to
Recalled Products Resulting from the Contamination. A lot of Production Lines were stopped
and Julie’s Products were Banned in Some Countries for a Period of Time. The Company was
fortunate enough to have recovered from this crisis. And as mentioned by Mr Ang, a lot of
Aggressive marketing was Performed after the Incident to Share their Products and Regain the
Company’s Presence in the Different Countries. According to Mr Ang, the Business Normalized
and Significantly Improved again since 2010.
 In Order to Hire New Employees, the Company Posts its New Job Opportunities on
Different Online Platform. In doing so, the Company Gives out Details on the Expected
Responsibilities of the Employee, the Qualifications as well as the Skills Required. Interested
Candidates would apply for the jobs and those who qualified will be employed. In order to
Expand its Business, the Management Inculcates a sense of Ownership and Loyalty in the
Employees in Different Ways. These include Providing Employees with Hostel that come with
Basic Amenities, Annual Allocation of RM200,000 on Organic Foods for the Employees,
Provision of Emergency Resources to Employees in Times of Need, and a Love Fund Shop
which Sells used Materials to Employees at Reduced Prices.

The Human Resources Department in every Company plays Critical Roles in Developing
and Communicating an Effective Succession Plan, Which Specifies the Criteria Chosen to fill
Future Vacancies in the Organization (Ballaro and Polk 2017). Businesses Promote Two Parts of
a Succession Plan which are (i) A Plan to Select the Right People, and (ii) A Process to Retain,
Promote, and Train the Appropriate People to Fill a New Position (Galagan, 2010). Although
there may be Discrepancies within Succession Planning Criteria and a Lack of a Formal
Succession Plan, the Human Resources Directors are Responsible for the Success of the
Development, Implementation, and Communication of the Organization's Succession Plan to
Support Employee Retention, Engagement, and Long-Term Growth for the Organization
(Ballaro and Polk 2017). The Management of Julie’s Manufacturing SDN BHD puts in Place a
Succession Plan in running the Different Departments in the Company. However, details of the
Succession Plan by Julie’s Manufacturing SDN BHD was not found in any Published Literature
as at the time of this Review. Thus, such a Plan may not have been made known to the Public for
Reasons of Privacy.

Furthermore, the Company also Inculcates an Overall Business Strategy for the Future into
its Affairs. These include Strategies such as e-commerce and Automation (The CEO Magazine
2018). As mentioned by the Director, Mr Martin Ang, Ecommerce is an Interesting Challenge
now, because you can’t keep doing things in Conventional Ways. The company currently has an
e-commerce team in China to handle the Logistics for e-commerce Transactions. This ensures
that when the Company Receives an Online order Through Virtual Marketing Platforms, the
Team Forwards the Order to the Company’s Warehouse, where the Products Ordered are Packed
and Shipped out the Next Day. A lot of things have changed when it comes to Manufacturing
and Business Generally, Especially with the Historic Covid19 Pandemic. Many businesses that
never believed in E-commerce are seriously using it as a Major Source of their Current Progress.
Thus, as a Business that Believes in Successes with the Trending Strategies, Julie’s
Manufacturing SDN BHD is Following Suit. In Addition, the Company spares no effort in
Promoting its Products to ensure Julie’s Biscuits tastes are Unique. Thus, the Company Allocates
between 20% and 30% of its Annual Budget into Business Promotions and expects to see some
Returns on Investments within the Next 3 to 5 years.

The Company’s Future Objectives aims at Maintaining Good Relationships with so many
Different Markets and Cultures. They work together on understanding where the company stands
in terms of each country, Identifying every Market and the Challenges They are facing. The
Company does not just do the business with partners who are just willing sellers; it works to
ensures that the partners see and realize that company cares about a lot of things including care
for the employees, the society, and our planet as a whole.

Based on the above information, it could be inferred that Julies’ Manufacturing SDN BHD is
a very viable Business which can stand the test of time, In the Competitive Environment, Julie’s
Manufacturing looks for gaps in the Market in order to beat the Competitors. Julie’s does so by
considering Factors such as Marketing and Pricing Strategies, as well as the Locations They
choose to Establish either the Manufacturing Factories or the Marketing Offices. It pays attention
to trends, not necessarily by coming up with entirely original ideas, but by taking Current
Popular Trends and Building from what is already observed from the Current Trends out there
and Creating Improved Products. The Company also offers a lot of benefits that outweighs the
risks. This may be found in the quality of their products which are produced with High Quality
Materials, and which puts of Disadvantageous Factors such as Prices. The Company Allocates
Huge Amount of Funds in the Evolving Available Technology to ensure that it does not lack
behind in the very Competitive Business Environment in Malaysia. This could be seen for
examples in the Amount of Resources allocated in things like E-commerce and Automation. One
of the Challenges faced by the Company is on Manpower and Labour. However, the Company
also makes efforts to ensure that the Best Strategies are Employed in Tackling this issue. An
instance can be given with the Use of Staff a given Country to Train the Workers being
Employed from that Particular Country.

As a business owner, I would recommend the following strategies in order to achieve more
progress in my business in Malaysia.

 Working With The Right Talent: Assembling and Working with the Right Talent to Build a
Brand brings a Long-term Success in Business. This is true because the Team Gathered in a
Company is the Company's Backbone; and one bad person can completely derail the
Company’s Progress. The Right Talents who Share the Same Vision Greatly Improve the
Chances of Success.
 Motivate Staff: A lot of Employers do not know this. With the current situation of things
globally, a lot of people especially the Unemployed, are going through so much Depression
Due to Lack of Finances. Talented and Motivated Staff members bring on big improvements
in business. Thus, Employers need to know what motivates the Employees to Higher Levels
of Performance and Apply the Strategies. Part of this is being willing to listen to input and
insight from the Staff, despite their Position in the Company. Some of the best ideas come
from those closest to certain problems.
 Hard Work: This has been a major factor in life when it is pertinent to achieve success. In
addition to working hard, the Manager in a Company would also need to ensure that the
workers that he or she employs are smart in their job performance. Thus, working hard and
working smart should go together.
 Know Your Limits: Successful Businesses and Companies usually set very clear ideas of
their boundaries and limitations. By knowing your Entrepreneurial Personality Type, you can
manage your resources and find help in areas of weakness. This is a key driver to success.
For example, if you're great at sales but less experienced with bookkeeping, focus on sales
and hire someone else to handle the books. In this way, both time and resources will be
managed more efficiently.
 Improve On Your Selling Skills: Improving on sells helps determine the viability of a
business. To this effect, a company must clarify its business mission by determining areas it
could excel and potential customers for the products. In this way, the company would gain a
greater sense of vision and purpose. Sales quickly prove the viability of a company’s
products and bring more revenue into the business, thereby bringing about effective growth
in the company. Ideas are great, but without sales to accompany the ideas, they most
probably fail.
 Monitor Trends: With the global events and changes, a lot of businesses are being affected.
Stay abreast with current trends and issues happening in your industry and local community
brings a lot of relief from such events and changes.
 Take A Break: Running a small business is hard work. Sometimes the best way to improve
your business and reignite your passion is to take a vacation. The potential value in spending
some time away from your work on vacations should never be underestimated.

References
Ballaro, J.M. and Polk, L. (2017). Developing an Organization for Future Growth Using
Succession Planning. Organization Development Journal 1.

Galagan, P. (2010). Bridging the skills gap: New factors compound the growing skills shortage.
Association for Talent Development Journal. Retrieved from: http://www.astd.org

Julie’s (Online). Available from https://julies.com.my/our-story/history/

UKEssays (2018). History And Background Of Julies Biscuit Marketing Essay, Retrieved from:
https://www.ukessays.com/essays/marketing/history-and-background-of-julies-biscuit-
marketing-essay.php?vref=1

SME Corporation Malaysia, (Online). Retrieved from:

https://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-definition
The CEO Magazine (2018), (Online). Retrieved from:
https://www.theceomagazine.com/executive-interviews/food-beverage/martin-ang/

The Star 2014 (Online), Retrieved from:

https://www.thestar.com.my/business/sme/2014/08/21/baking-up-a-batch-of-growth-having-
built-a-solid-business-at-home-biscuit-company-eyes-markets-beyon