Final English assignment report

SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN

FOUNDATION IN NATURAL BUILD ENVIRONMENT

PRESENTATION TITLE: Research Report Presentation

GROUP MEMBERS:

Names Presentation / Research Report Roles.

CHEE WEI SHAN (0319572)

CHONG HUI XIN (0319363)

HWANG WEI LI (0319756)

TAN SHEAU HUI (0319235)

YAP JIA EN (0319550)

ENGLISH II / ENGLISH 2 (ELG 30605)

LECTURER: CASSANDRA WIJESURIA

SUBMISSION & PRESENTATION DATE: 13th January 2015

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Table of Content

No. Title Page

1 Artistic Cover 1

2 Cover Page 2

3 Table of Content 3

4 Key Summary 4

5 History Description of Hardware Business 5-6

6 Description of Businesses Chosen 7-9

7 Comparative Analysis 10-15

8 Recommendation 16-17

9 Bibliography 18

10 Appendices 19-37

11 References 38

Key Summary

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The Assignment

For this final project, we were given a task to select two similar businesses in

Malaysia for analyzing and comparing. The main objectives of this assignment are to

use appropriate methodology in obtaining information related to the chosen topic, to

demonstrate the ability to prepare questionnaires and interviews and to analyse data

and compile them in a report.

The Group

Our group consists of five members, Hwang Wei Li as the leader, Tan Sheau Hui

as researcher and editor, Yap Jia En as researcher, Chong Hui Xin as videographer

and editor and Chee Wei Shan as secretary and recorder.

Businesses Chosen

We decided to study the businesses of hardware stores which are placed in

Klang Valley and Negeri Sembilan. One of the hardware stores is located in USJ 17,

Subang Jaya, named Perniagaan Gluck. The other hardware shop chosen is located in

Port Dickson, Negeri Sembilan, called Cemerlang Indah Hardware. Perniagaan Gluck is

a partnership business whereas Cemerlang Indah Hardware is a legacy business.

Through the whole process of compiling this report, we had gained knowledge about

hardware business systems, their problems faced, main products and the competitors.

History Description of Hardware Business

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Hardware’s category covers establishments primarily engaged in the retail sale of

a number of basic hardware lines, such as tools, builders' hardware, glass, cutlery,

house wares, and household appliances. Besides, hardware also covers the

establishments which specialized in a particular line of hardware, such as paint or

wallpaper stores.

Hardware remained a healthy, growing business in the early part of the new

millennium. In colonial America, hardware stores were the earliest retail establishments

which sell tools that are imported from England. The oldest hardware store in USA was

Elwood Adams Hardware in Worcester, Massachusetts. Founded by Daniel Waldo and

son in 1782, it was still in business in 1999. The first American manufacturer of

hardware was probably John Ames, a blacksmith in Bridgewater who established a

factory for making shovels in 1774. Ames' shovels became indispensable to American

settlers.

The American Industrial Revolution in the early 1800s had greatly increased the

availability of manufactured goods and spurred the growth of general stores that

stocked basic hardware. The industrial revolution also gave rise to factories that could

supply more goods than nearby communities could use. In the last half of the 19

century, the hardware industry began to acquire distinct manufacturing, retailing

segments and wholesaling.

If you want to start a hardware business in Malaysia, you need to have a resale

license to allow your store to buy goods tax exempt from a manufacturer or distributor.

Besides, you also need an Employer Identification Number (EIN) which is also known

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as Federal Tax Identification Number, to identify your business entity. Furthermore,

Business Name Registration or DBA Certificate is also needed when you use any name

for your retail business other than your own personal name, you'll need to file the

appropriate paperwork.

Before you start your hardware business, you need to choose a location and

study the competitors in the area. Next, choose a 20K to 30K square feet or larger

hardware store to install shelving and display cases. Then, get your stock from three

sources such as hardware wholesalers, direct from the manufacturers and secondary or

specialty distributors. You can also advertise your retail hardware store with low-price

image and put on convenience shopping.

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Description of Businesses Chosen

Perniagaan Gluck Cemerlang Indah Hardware

Location No. 3, Jalan USJ 17/2

47630, UEP Subang Jaya

Selangor.

392, 393, Jalan Pantai Bt 1,

Happy Garden,

71000 Port Dickson, Negeri

Sembilan.

Branches and

Employees

Perniagaan Gluck is a

partnership business with no

branches. 3 employees are

hired.

Cemerlang Indah is also the only

one hardware shop they have.

They have 7 employees, including

the owner’s son, Mr. Goh.

Main Products

and Services

- Construction materials. The

best sellers are YTL brand

cements, paint thinners,

paintbrushes and plumbing

fitting.

- DIY products: sponges,

water pipes, blooms and

watering pots. The shop

provides more household

items and products in these

few years.

- Construction materials:

cements, woods, sand and

steel. Basically, they sell the

materials to construction

business.

- DIY products: screws, toilet

accessories, JOTUN brand

paints (target on families)

- Others services: key

duplication

Estimated

Current Number

of Customers

- Daily number of customers:

approximately 150 (with age

range of 20 and above)

- Main customers are the

workers who in the area of

supplier, construction

business, plumber,

electrician and painting.

- Daily number of customers:

around 80 (uncertain and

unstable)

- The shop also serves suppliers

but there are not many

competitors near their area so

CEMERLANG INDAH is a

good choice for the customers.

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- The business is good

because prices are

reasonable and it provides

good service attitudes and

fast delivery services.

Customers were highly

satisfied and were willing to

come back.

- It gives the best, tries to fulfil

their customers’ needs and

demands to maintain the

relationship.

When were the

businesses

founded?

The business was founded in

2000. It has operated for 15

years until today.

The business began in 1984. It

has operated for 31 years until

today.

The Business

Founders

The founders were Mr. Tan and

Mr. Liew, working as partners.

Now Perniagaan Gluck is

operating under two bosses.

The founder was Goh Sin Sing.

He started the business together

with his friend who works as

contractor but after a few months

his friend decided to quit. Now he

is on half retirement state, the

business had been passed down

to the next generation which is

Mr. Goh's son. Mr. Goh does not

work in the shop every day. He

will only check on their business

accounting reports.

Motive for

Starting The

Businesses

During the period when

construction businesses of our

nation were beginning to grow,

Mr. Tan and his friends decided

to start up a hardware

business.

It happened by unexpected.

When he meet his uncle in

Singapore, who encouraged him

to involve in business instead of

being a wage earner. He then

decided to start up a hardware

business.

Recent Recently, they had a new idea There is not much new

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Development of starting an online business

due to the technology trends.

Nowadays, many people are

interested at DIY (do-it-your-

self), this makes up Mr. Tan

idea to start online business. It

is still in progress and they now

are testing on a Facebook

pages, PERNIAGAAN GLUCK

They will keep improving.

development in their business;

they will continue to manage well

and try to satisfy their customers’

needs while maintaining

relationship with them.

Comparative Analysis


There are quite a number of

businesses trading in hardware

market in close proximity,

approximately 15 shops.

i) CompetitorsOnly a few hardware shops

other than Cemerlang Indah

are located in the area. None

of them is considered as

strong competitor.

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1-Ng Brother Hardware

It is a wholesale hardware

business in Subang Jaya, with

a wide variety of products,

including hardware supplies,

building materials, timber,

paint, roofing and many more.

ii) Brief bios of

competitors

2-Petaling Hardware

Being categorized as a

hardware wholesaler,

manufacturer and store, it has

almost taken over the control

of hardware product price and

becomes a great influence in

the area.

3-Sia Trading Co.

With its diverse product variety

and fast delivery system, Chia

Trade is one of the leading

hardware businesses in the

area. Customers are satisfied

with its efficiency and

guaranteed services.

Put customers as priority

- Always perceive clients’

needs as a guide to upgrade

product options and services

- Ex: High-tech and easy

operate tools such as laser

machine are recently sold for

iii) Business

competing

Strategies

Friendly Working Ethics

- Being a family-like

business, it focuses on

providing the best quality of

services to the customers.

- They always satisfy

customers by fulfilling their

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customers’ convenience. needs and demands. Help

is offered to every

customer. Prices are set

according to customers’

value.

Quality of services

- Not only setting the prices low

could satisfy the customers,

they choose to focus on

serving methods.

- Ex: Seeing the trend of e-

store as an opportunity, they

are currently towards the

progress of providing online

service to the customers.

Monopolistic competition

- Surrounded by many

business competitors trading

the similar products, product

variety externality occurs in

Perniagaan Gluck.

iv) Nature of

market

Oligopoly

- There is no strong

competitor for Cemerlang

Indah Hardware. It has a

relatively great control over

the product prices in that

area.

Approach IT and technology

- Developing on their own

Facebook page and an online

store website:

- to generate new business

opportunity

- to provide professional

services to clients

- to keep clients updated of

most recent items

v) Most recent

development

There is minimal recent

development in Cemerlang

Indah Hardware.

Cemerlang Indah Hardware

focuses on maintaining sales

growth and business

management. Meanwhile, it

keeps track on customers’

latest demands and needs to

strive for the best products and

services quality it could.

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vi) Obstacles faced by new hardware businesses

1. Capital assets

Hardware businesses are goods producing business. They require lots of capital

assets and this can become a barrier to entry, which means obstacle for new

businesses to get started in a market.

2. Knowledge and Business Skills

A new business owners who start as a sole trader will need to learn much in a short

period of time. Even if they have strong product knowledge, there will be areas that

they are weak at, such as marketing and managing employees.

3. Competition

New businesses will be facing rival companies that are already trading in the similar

markets. They have the upper hand and advantage as they have been operating for

a longer time, with more knowledge and experiences gathered.

4. Time Management

To start a business, lots of works have to be done, comprising of setting goals and

plans, decision of task to concentrate on, products selection and hiring employees

with desirable working ethics. This situational could lead to stress and pressure on

new business owners if time is not managed well.

vii) Summary Table

Similarities


Hardware supplies and

construction materials

Main products

sold

Hardware supplies and

construction materials

3 immigrants are hired Workers 6 immigrants and the owner’s

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son.

None Current branches None

Local customers Targeted market Local customers

Differences


Mr. Tan and Mr. Liew founded

Perniagaan Gluck in 2000.

Previously, seeing the

development in construction

businesses in our nation as an

opportunity, they started a

hardware business along with

some of their business associates

at Bukit Beruntung, Rawang. As

the economy was stabilized, they

were soon separated and began

operating their own businesses.

Founder and

History

Mr. Goh Sin Sing founded the

business in 1984 in Port Dickson.

He was once a policeman who

was then inspired by his uncle to

start his own business. Now, Mr.

Goh has given his business share

to his son. Mr. Goh is now in half

retirement state that only checks

on the business income statement

report once in a few months.

Perniagaan Gluck is a standard

hardware shop located in USJ 17,

Subang Jaya.

Address:

No.3, Jalan USJ 17/2,

47630, UEP Subang Jaya,

Selangor D.E., Malaysia.

Location Cemerlang Indah Hardware is

located in Port Dickson, with two

shop lots combined.

Address:

392, 393, Jalan Pantai BT 1,

Happy Garden, 71000 Port

Dickson, NSDK, Malaysia

Construction materials, DIY

products, household items

Types of

products and

services

Construction materials, DIY

products, key duplication service

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Around 150 customers per day Number of

customers

Around 80 customers per day

- Featured on Facebook page

- Online selling website

Media None

Provide DIY tools and household

items instead of focusing on

hardware supplies only. Hence, it

attracts customers from different

work fields and even families from

the nearby residences.

Combating

competition

Since it is a family-like business,


provides good services and offer

helps to customers from time to

time. Their friendly working ethics

are one of the key attitude towards

getting and retaining customers.

Longsighted Future Plan Shortsighted

Very well-organized, with selling

products neatly categorized and

arranged on rows of racks.

Shop layout

and

atmosphere

It is a combination of 2 shop lots,

providing a wide area with variety

of products sold. However, it

presents a rather traditional shop

environment as some products

sold are crammed together.

viii) Conclusion

Based on our research and analysis, we have come to an indisputable

conclusion stating Perniagaan Gluck is more commercially successful to be compared

to Cemerlang Indah Hardware. It possesses a higher potential of business development

and success whereby the manager has the quality of insight despite the fact that its

shop area is relatively smaller than Cemerlang Indah Hardware. He is able to envision

what the business should do so it leads towards a more profitable and successful future.

On the other hand, Cemerlang Indah Hardware is practicing traditional methods in

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handling its business. It does not have a clear direction and future plan as an inspiration

for the business team to strive for a higher quality guaranteed business.

In terms of combating competitors, Perniagaan Gluck has its own specific

business strategies as it always keep track on the current society trend and customer

demands, leading towards its most recent development in generating online services.

As for Cemerlang Indah Hardware, it is an advantage that it consistently gives positive

impression towards its customers by showing friendly attitudes but to look at its long

term effect, this strategy possesses minimal potential towards getting more customers.

As of now, Perniagaan Gluck is considered as a more competitive business but

having to say that, every business has its own motive and methods of managing it. After

all, to earn an independent business similar to Perniagaan Gluck and Cemerlang Indah

Hardware, one should have the basic business knowledge and set a clear path to direct

towards ones specific business goal.

Recommendation

Perniagaan Gluck

Based on our interview with Mr. Tan, we could observe that the manager is an open

minder. He has an intention of generating global business via online website to serve a

wide range of people. Therefore, we recommend him to

a) Determine efficiency of strategies if they want to start an online business.

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They should consider the business economic climate factors of business such as

Economic projections for national economy over the next three to five years and

Economic projections for his region and city. They should get a clear direction on

their future.

b) Improve on their weakness spots.

They need to observe and know the strength of competitors as well as their own

weaknesses. For example, they can set strategy to cut down the product prices

at below normal market prices and provide better services such as efficient

delivery to compete with others.


During the interview in Cemerlang Indah Hardware, we found that the owner is still

utilizing traditional methods in managing their business. For instance, they record their

accounting and business report by hand writing. Our recommendations are as below:

a) Improve services by approaching IT and technology

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They should open an official page to get their customers’ feedback and to allow

people to know about their business. Besides, it is a good way of promoting and

advertising as IT trends is growing rapidly in our society recently. Meanwhile,

they can improve on their services based on clients’ recommendations to

increase their reputations.

b) Motivate employees or staff

By being a democratic styled business leader who keeps customers involved in

decision making and makes them part of the team, Mr. Goh can earn their loyalty

hence improving their working ethics and attitude despite eliminating their

laziness. He should build a good relationship with employees too.

Bibliography

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Appendices

i) Appendix A

The Chosen Businesses

a) Perniagaan Gluck

Address: 3, Jalan USJ 17/2, Usj 17, 47630 Subang Jaya, Selangor.

Map: (taken from Goggle Map)

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Shop sign:

b) Cemerlang Indah Hardware

Address: Address: 392,393, Jalan Pantai Bt 1, Happy Garden, 71000 Port Dickson, NSDK, Malaysia.

Map: (taken from Google Map)

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Shop sign:

iii) Appendix B

Photos

a) Perniagaan Gluck

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All the goods are kept well and are arranged on the shelf accordingly. This gives a convenient environment both for workers and customers.

All the accessories are well arranged. Even the new drivers’ ‘P’ stickers are available.

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They are selling household products too. For example, the watering bucket, different sizes of pails and nylon strings.

One of the best sellers: YTL cement.

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Paints are being stacked on each other so that they would not drop off from the shelves and this also eases the workers to search for different types and colours of paints.

The worker was assisting the customer (the man wearing white shirt) to select a broom wanted.

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Mr. Tan’s workplace

A group photo with Mr Tan after interview.

Mr. Tan C.S., Perniagaan Gluck’s owner

b) Cemerlang Indah Hardware

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The main shop view- It is filled with variety of

tools and brands for customers to

choose from.

Mr. Goh Sin Sing’s eldest son (also

the current person in charge of the

shop) is busying at his workplace.

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The common paint brand available in the shop: JOTUN

Modern paint maker machine

The products and boxes were put everywhere. This is dangerous as the person passing by may get hit by the goods.

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A group photo with Mr. Goh Sin Sing after the interview

Mr. Goh Sin Sing

iv) Appendix C

Minutes of Meeting

Meeting 1

DATE: 10 December 2014

TIME: 12.00pm – 2.00pm

VENUE: Computer Lab, Library Level 2

NAMES OF GROUP MEMBERS TUTORIAL GROUP ROLE

Hwang Wei Li 2 Leader

Yap Jia En 1 Researcher

Chong Hui Xin 1 Researcher

Tan Sheau Hui 2 Secretary

Chee Wei Shan 2 Researcher

NO.

ACTIVITY ACTION TAKEN BY

1. Research information (address, brief history,Person in charge of the shop)

All members

2. Confirmation on appointment date and time All members

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Meeting 2


TIME: 10.00pm – 11.30pm

VENUE: Media via WhatsApp

NAMES OF GROUP MEMBERS TUTORIAL GROUP

Hwang Wei Li 2

Yap Jia En 1

Chong Hui Xin 1

Tan Sheau Hui 2

Chee Wei Shan 2

NO.


1. Discussion on roles to be played by each memberthat will attend for the interview on following day

Name RoleHwang Wei Li InterviewerYap Jia En InterviewerChee Wei Shan RecorderChong Hui Xin Videographer

*Tan Sheau Hui was absent (went for vacation)

All members

2. Confirmation of the shop location All members

3. Discussion on preparation for the interview All members

4. Translation of interview questions from English toChinese

Hwang Wei Li

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Meeting 3


TIME: 1.00pm – 2.45pm

VENUE: Student Life Center


Hwang Wei Li 2 Secretary

Yap Jia En 1 Researcher

Chong Hui Xin 1 Secretary

Tan Sheau Hui 2 Analyzer


NO.


1. Division of report’s section for each members All members

2. Draft conclusion of data collected from interview(Cemerlang Indah Hardware Shop, Port Dickson,Seremban)

All members

3. Discussion about the video recorded from theInterview to relate to the report’s content

All members

4. Discussion about the next interview at PerniagaanGluck, Usj 17

All members

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Meeting 4

DATE: 06 January 2015

TIME: 1.30p.m. – 3.30p.m.

VENUE: Library Level 3


Hwang Wei Li 2 Secretary

Yap Jia En 1 Absent

Chong Hui Xin 1 Video-editing

Tan Sheau Hui 2 Researcher


NO. ACTIVITY ACTION TAKEN BY

1. Phone to finalize the information about the shop (Cemerlang Indah Hardware Shop in Seremban)

Tan Sheau Hui , Chee Wei Shan

2. Arrange and finalize the information collected from interview and other sources

Chong Hui Xin, Hwang Wei Li

3. Report to everyone about the progress of their part for the report

All members

v) Appendix D

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Interview Questionnaire and Results

Perniagaan Gluck Interview Questions Cemerlang Indah Hardware

Our business started in the

year 2000.

When was the business

founded?

My business started in year

1984.

Actually when we first

started this business, there

were 2-3 shareholders. One

of them is Mr. Liew, my

current partner of Gluck

hardware shop.

Who is the key founder? I am the founder of the

business.

-That time, the construction

industry of our country was

beginning to grow.

-Our first location of the

hardware shop was at Bukit

Beruntung, Rawang.

-When the business had

stabilised, we separated

and opened our own shops.

What prompted you to start

the business?

-Previously, I was a pig

husbandry, planting palm oil

and rubber trees.

-Then, by unexpectedly,

when I went to Singapore I

met with my uncle who

encouraged me to do

business instead of being a

wage earner.

-Soon, a person named Goh

who worked in construction

field asked me to partner up

to start a hardware business.

I then became a contractor

for the developer.

-Later on when I had a stable

finance, I started to do

hardware business.

-Mainly hardware materials

and construction materials.

What are your main

products or services?

-Mainly hardware materials.

-We also sell cement, iron

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-We also provide services

based on customers’ needs

such as solving household

and technical problems.

-We will try to satisfy them

including delivery goods and

update on products variety.

materials, wood materials,

paint tools.

-Piping materials are

available in the shop too.

Previously our targets were

contractors, construction

workers and renovation

workers. Recently, our main

customers have changed to

household type.

Who are your customers in

terms of occupation?

-Mostly sub-contractors

rather than main contractor

because doing businesses

with main contractors are

risky.

-there is no age range.

Estimated figure is

10,000,000.

What is your business

annual revenue figure?

-When facing financial

needs, we sell land to invest.

Today, we own many shop

lots, houses and stores.

*Interviewee refused to give

a specific figure.

-Like I said before, we

separated from Bukit

Beruntung and operate our

own business now. This

can’t be considered as

having branch offices.

How many branch offices/

stores do you have?

-I don’t have any branch

store.

-Yes, a lot

-Currently, there are at least

Do you have many

competitors? Who are

There are only a few

hardware shops here. We do

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1 to 2 hardware shops in the

nearby housing area, which

are also our competitors.

- Now then China trading

market is open and if you

have the ability, you can

directly take goods from

there.

- Results in more shops

opened to sell off the goods

imported from China.

they? not compete with others.

Ng Brother hardware,

Petaling hardware and Sia

Trade hardware.

Can you list out your top 3

competitors?

-

Basically, every area has

the shops that have the

superiority because it is

related to price and history.

So if your service is good

and price is cheaper or

delivery is efficient you will

be the dominant.

How big is your market

share as well as your top

competitors?

-I don’t give others my share.

-But now I’m half-retired and

all are under my son’s

management.

Yes.

-since China market is open,

for those that have ability,

they will directly take the

goods from there. .

-they open more shops to

Is your business constantly

facing strong competition

from other competitors?

-can’t said no competition.

–but we don’t care so much.

Just sell as usual.

-not affected as the things

sold are the same.

-if salesman introduce us the

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sell the goods

-More competition causes

price becomes competitive.

product, we will sell it but

only about a month.

-salesmen are good to us as

they will tell us whenever a

new product arrives.

-there are changes from

time to time. We

consistently update new

products. For example, the

Laser machine. Those days,

it was very complicated. But

now, it is easier to be used

regardless of age.

How often do you release

a new product?

Yes, the new products

basically are household

products.

-basically no because there

are always shops that are

cheaper than you.

-my business’s direction is

service attitude. This is the

most important.

Are your pricing decisions

strongly affected by your

competitors?

-We don’t compete with

others. A little profit earned is

fine. Prices are determined

by salesman. If it is too high,

change another one.

-Our motive is to help the

customers.

Nowadays, the capital are

getting higher

-open a small hardware

shop will need around

RM150,000 to 200,000.

How much capital is

required to start this

business?

-capital only 156 ringgit from

my pocket at first.

-Soon, my friend encouraged

me to partner up and all

supplies came from his

company.

-Now it is easier than those

days.

Generally, do you feel it is

easy or hard to enter this

Hardware business is a type

of business that just feed you

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-Those days, it is impossible

to directly get the goods

because the trade has yet to

be developed.

- More capital is needed to

buy goods and one had to

pestered with debts.

- Now, since China market

is open, most of the

products are from there.

- It will be easier if supplier

support you and vice versa.

market? Why? enough for your daily life

routine. Sometimes people

are troublesome. This

business more or less will

have conflict.

-By continuously changing

our service attitude, price

range and continuously

finding new products.

- Service is the most

important because

customers are very concern

about it.

-although your price is a

little higher, customers will

still come to you if you have

friendly kind of service.

What strategies do you

employ to divert customers

away from your

competitors?

-

vi) Appendix E

Documents

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a) Business Card

Perniagaan Gluck


References

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Final English assignment report

Education

Transcript of Final English assignment report