2.
0 Venture Team
2.1 Formation of Organisations
Home Company is the company that selling electronic kitchen appliances in Malaysia and
began the business on June 2 in 2020. Home Company was founded by several individuals
which are Choong Zhi Le, How Yue Yang, Fong Pui Ying, Wong Lee, and Pang Weng Wai.
Home Company develops and sells the electronic kitchen appliances that can provide greater
convenience and value as well as bring new opportunities to people’s lives. The company’s
retail store will be located at Wisma UOA, Jalan Pinang which is nearby the city centre such
as Kuala Lumpur City Centre, Pavilion Kuala Lumpur, and Lot 10. Since the company and
the retail store was located at the place with high human traffic then can attract more
customer to walk in to have some experience activities with the products that the company
sell.
The business entity of the Home Company is a partnership. The partnership is a form of
business in which two or more people share ownership and the responsibility of managing the
company as well as the income or loss from the business (Shopify n.d.). The income from the
business will be paid to the partners. The partners can share the responsibility for managing
the company. The partnership allows the owner to utilize the resources and expertise of the
partners compared to a sole proprietorship.
The partnership also helps to reduce workload than the partners having more time to do other
things to help the company increase income. The business can be easy to manage by choosing
partnerships as a business entity for the business. The partnership allows making decisions
quickly without excessive bureaucracy as compared to a sole proprietorship.
2.2 Goals and objectives of venture
The Home Company want to become a well-known product in Malaysia. So, they have to
always follow what’s on trending around the world. It is because their brand wouldn’t get
outdated easily (Luenendonk 2020). As Home Company is selling various electronic kitchen
appliances, the objective of the Home Company is selling more than 15,000 units of
electronic kitchen appliances per year because they can get more profit to make more
research and development (R&D) to advance their products.
The goal of the Home Company is to diversify their business globally by producing electrical
appliances products like refrigerator, and microwave rather than just focus on manufacture
electronic appliances, so that more outsiders can get to know more about the Home Company
product (Kokemuller 2020). Not only that, the Home Company wants to partnership with
online platform like Shopee, Lazada, to advertise their products around the world. Hence,
their products would create awareness to outsiders.
2.3 Roles played of each member
The chief executive officer (CEO) of the Home company is Chong Zi Le. A CEO must own
high leadership skill because she has to guide the whole team to improve the company
operations. Because of she is able to make important decisions of the company, so she
possesses 40% of the Home company shares of the company, which has the highest shares
among those managers.
There are 4 managers follow by CEO, which are finance manager, marketing manager, IT
manager, and accounting manager. The finance manager role of the Home company is played
by Wong Lee. Since she is finance manager, she uses company money to invest to
opportunity property to gain interest of the property, so she owns 15% shares in the Home
Company.
The marketing manager role of Home company which is played by How Yue Yang. As an
experienced marketing manager, she must own excellent communication skills, because she
needs to have the ability to promote their company by getting more outsiders to know our
company. Therefore, she owns 15% of company shares of the company.
Pang Weng Wai is an IT manager role in Home company. It is because he finds out the latest
technology, for example hyperconvergence (Bednarz 2020). It is a technology combines
computing, networking and storage into a single system to operate. He applies it into Home
Company to convenient the company operations so that the company would not break down
easily. Thus, he also retains 15% of shares in Home Company.
Last manager is accounting managers, which the role is played by Fong Pui Ying. She helps
the company to monitor financial report of the company frequently so that company will cut
down expenditures by not overspending on unnecessary expenses. Hence, she owns 15% of
the shares in the Home Company.
3.0 Business idea and opportunity on this venture
3.1 Creation of idea/ opportunity
The idea of creating an automatic food cooking machine arises from the foreign cook ban in
restaurants. Based on the news, the Human Resource Ministry announced that all restaurants
need to only recruit locals as cooks (The Star 2018a). It aims to decrease the dependence of
local restaurants on foreign labour and ensure the quality of local food. However, the
Malaysian Muslim Restaurant Owners Association (PRISMA) president stated the issue of
workers shortage in the restaurant was getting more serious as no locals want to work in
restaurants. Therefore, we intended to create an automatic cooking appliance to solve this
problem.
There is an opportunity that creates the need for the automatic food cooking machine. The
first essential quality of an opportunity is attractive. This product is attractive because it has
real demand in the market especially for the restaurant and workers. This is because the
restaurant owners can reduce the number of kitchen staff by replacing them with the machine.
Then, the shortage of chefs can be solved and the kitchen operation can be run smoothly. For
the workers, typically they are always busy working and no time to cook their own meal.
Therefore, they can use the automatic food cooking machine that helps them to prepare
meals.
The other essential quality of an opportunity is durable which means the demand for
automatic food cooking machine is consistent over time. This is because food consumption is
daily necessities no matter people choose to cook at home or eat at the restaurant. There is
also the right timing to enter the market because of the new regulation which did not allow
the local food restaurants to hire foreign chefs (The Star 2018b). The social forces also
provide an opportunity because of the busy schedules that cause people rarely cook at home.
Moreover, our new product can add value to the buyer by saving time to cook and let them do
another thing while waiting for the machine finishes to cook.
3.3 Industry analysis
The large cooking appliances industry is expected to grow at a compound annual growth rate
of 4% during the forecast period of 2020 to 2024, with sales reaching 547,200 units by 2024.
In 2019, retail sales of large cooking appliances increase by 2.9% from 447,800 to 461,000
units (Appendix 1). The sales are forecasted to grow 3.7% in 2020 as home cooking is still
popular in Malaysia which can continue to support the sales of large cooking appliances.
Rising health problems and advances in technology are the key factors driving the growth of
large cooking appliances sales. The reason for consumers' increasing concern about health
problems is the sudden increase in the working-class population, combined with the increase
in the consumption of fast food (Market Watch 2019). The community is moving toward
convenient and fast cooking techniques. Therefore, consumers prefer the latest and most
advanced cooking appliances which require less oil content to make cooking healthier. This
will have a positive impact on consumer demand for large cooking appliances. Furthermore,
the technological advancement of appliances also promoted the growth of the large cooking
appliances market (Bisht 2015). More and more people are looking for modern cooking
appliances because they want to imitate the professionals (Persistent Market Research 2020).
This trend also helps in the development of large cooking appliances.
Refer to appendix 1, large cooking appliances are in a maturity stage. In this stage, the
product is produced and manufacturers aim to maintain the market share they have built.
Sales have stabilized and reached market saturation at this stage because the product has been
widely recognized by most potential buyers (Claessens 2015). The longest stage in the
product life cycle is the maturity stage. Therefore, the cost is reduced due to the volume of
production increased and experience curve effects. Moreover, there is less need for
investment and marketing, as cash flow should be strongly positive in this stage.
7.0 Product development
7.1 Description of product
Home’s Automatic Stir Fryer Cooking Machine is a type of ultra-modern kitchen products in
kitchenware industry, which had outdone the traditional approach of manual cooking. The
function of this product is to stir and fry foods by having any people to loads the ingredients,
adjust the timer settings, pre-setting the stirring speed and ideal temperature on the touch-
screen control panel (Ali Express 2020). It does not require any complex operation, while
every setting is being done on the control panel, after that just one click on the power on
button and the cooking machine will automatically execute and operate itself. There is no
need to turn the power off after the operation has done because once the machine finished
cooking then it will automatically power off due to the build in safety protection system.
Besides, when its power off, it immediately opens the lid to remind the people that dish had
already done.
This machine comes with the features of automatic heating, 3-grades speed control, 8-grades
temperature control, ceramic non-stick coating and there are two cooking blades under the lid
which help to stir and fry the foods within the cooking pot. It also featured with automatic
add oil or water because it has a pair of build in oil tube and water tube designed in the
machine, it will bring convenience to the people as they can simply add sufficient amount of
oil and water to store for quite a period of time such as 2 weeks instead of keep refilling
every day. Moreover, this machine equipped with automatic feeding as well, it refers to
automatic add seasoning and ingredients from the 5 container set up right next to the cooking
pot. The people only need to prepare the ingredients in advance and put in into the containers
according to the sequence based on the recipe, the first container means it will be the first one
which to pour into the cooking pot and so on. This machine is also featured with hot and cold
air duct insulation, this is to improves heat dissipation, at the same time avoid hot air from
being sucked in again so to extends the product life.
References:
1) Ali Express 2020, Automatic stir fry pot Chinese food cooking machine cooker machine
Cooking robot Fried noodles pot Fried rice machine, viewed 9 March 2020,
<https://www.aliexpress.com/item/4000182474278.html?
spm=a2g0o.productlist.0.0.4f7b34adcfhYCh>
2) Bednarz 2020, Hyperconvergence, viewed at 9 March 2020,
<https://www.networkworld.com/article/3207567/what-is-hyperconvergence.html>
3) Bisht, P 2015, Kitchen Appliances Market by User Application (Household,
Commercial), Fuel Type (Cooking gas, Electricity) and Structure (Built-in, Free stand) -
Global Opportunity Analysis and Industry Forecast, 2013 - 2020, viewed 8 March 2020.
< https://www.alliedmarketresearch.com/kitchen-appliances-market>
4) Claessens, M 2015, PRODUCT LIFE CYCLE STAGES (PLC) – MANAGING THE
PRODUCT LIFE CYCLE, viewed 8 March 2020.
<https://marketing-insider.eu/product-life-cycle-stages/>
5) Kokemuller, N., 2020, Why Do Companies Go International, viewed at 9 March 2020,
<https://bizfluent.com/facts-5256365-do-companies-go-international.html>
6) Luenendonk. M 2020, Top 10 PR Techniques to Make Your Product, viewed at 9 March
2020,
<https://www.cleverism.com/top-10-pr-techniques-make-product-famous/>
7) Market Watch 2019, Kitchen Appliance Market, Trends, Growth, Opportunities and Top
Key, 2023, viewed 8 March 2020.
<https://www.marketwatch.com/press-release/kitchen-appliance-market-trends-
growth-opportunities-and-top-key-2023-2019-09-18>
8) Persistent Market Research 2020, Domestics Kitchen Appliances Market, viewed 8 March
2020.
<https://www.persistencemarketresearch.com/market-research/domestic-kitchen-
appliances-market.asp>
9) Shopify n.d., Partnership, viewed 7 March 2020.
<https://www.shopify.com/encyclopedia/partnership>
10) The Star 2018, Govt to ban foreign cooks, only locals allowed to cook in restaurants,
viewed 8 March 2020.
<https://www.thestar.com.my/news/nation/2018/06/22/govt-to-ban-foreign-cooks-only-
locals-allowed-to-cook-in-restaurants/>
Appendices:
Appendix 1: Sales of large cooking appliances
Source: https://www-portal-euromonitor-com.tarcez.tarc.edu.my/portal/analysis/tab
Chief
Executive
Officer
(Chong Zi Le)
40% company
shares,because
she makes
important
decison of the
company.
Finance Accounting
manager manager
(Wong Lee) (Fong Pui
15% company Ying)
shares, because 15% company
she helps shares, because
company she cut down
making unnecessary
investment to company
gain profit. expenditures.
Marketing IT manager
manager (Pang Weng
(How Yue Wai)
Yang) 15% company
15% company shares, because
shares, because he invents new
she advertise system to ease
their company company
to outsiders. operations.
