Report writing

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A COMPARATIVE ANALYSIS OF 2 BUSINESSES OF SIMILAR INDUSTRY IN DIFFERENT GEOGRAPHICAL LOCATIONS | FNBE ELG30605

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Foundation of Natural Build Environments (FNBE)

English 2 (ELG30605)

Assignment: A Comparative Analysis of 2 Businesses of Similar Industry in

Different Geographical Locations

Lecturer: GopiGhantan Mylvaganam

Group Member:

Jiji Ng 0904Y72861

Wong Yun Teng 0323454

Tan Tee Jane 0323640

Janson Chen 0323047

Ho Hong Lok 0323949

Pau Jin Wei 0323840

Jason Goh Kok Wei 0323392

Mashruk Asad 0322188


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Table of Contents

Key Summary ………………………………………………………………………………6

History of Coffee Beans and Its Trading in Malaysia ……………………………………...7

Brief Description of the Businesses……………………………………………………..8 – 10

1. Berjaya Starbucks Coffee Company Sendirian Berhad ………………………...8

a. Main Products and Services ………………………………………………...8

b. Business Foundation ………………………………………………………..8

c. Business History ……………………………………………………………8

d. Core Success ………………………………………………………………..9

e. Managerial Success ………………………………………………………....9

2. C U Latte by Cheong Foh ………………………………………………………9

a. Main Products and Services ………………………………………………...9

b. Business Foundation ………………………………………………………..9

c. Business History …………………………………………………………...10

d. Core Success ……………………………………………………………….10

Business Competition …………………………………………………………………11 - 12

1. Number of Competitors and Brief Bios of Top 3 Competitors ………………...11

a. Berjaya Starbucks Coffee Company Sendirian Berhad ………………...11

b. C U Latte by Cheong Foh ………………………………………………11

2. Business Competitiveness and Strategies (Direct Competitors)

a. Berjaya Starbucks Coffee Company Sendirian Berhad …………....11 - 12

b. C U Latte by Cheong Foh ………………………………………….……12

Market’s Direction …………………………………………………………………......13 - 14

1. New Businesses Obstacles and Alternatives ……………………………………13

a. Berjaya Starbucks Coffee Company Sendirian Berhad ………………... 13

b. C U Latte by Cheong Foh ……………………………………………… 13

2. Nature of Market: Current Market Economy, Consumers and Suppliers

Collaboration ……………………………………………………………….……13

a. Berjaya Starbucks Coffee Company Sendirian Berhad ………….....13 - 14

b. C U Latte by Cheong Foh ………………………………………………-14


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Similarities and Differences …………………………………………………….......…..15 - 18

1. Summarization Table of Similarities and Differences between Two Businesses .15

2. Exposition Context: Similarities and Differences ……………………………….16

a. Globalization …………………………………………………………….16

i. Berjaya Starbucks Coffee Company Sendirian Berhad ………....16

ii. C U Latte by Cheong Foh ……………………………………….16

b. Café Passion and Cultures …………………………………………….…16

i. Berjaya Starbucks Coffee Company Sendirian Berhad …………16


c. Food Cultures and Their Motives ………………………………………..18

i. Berjaya Starbucks Coffee Company Sendirian Berhad …………18


Commercial Success ……………………………………………………………………...…19

Recommendations (Competitiveness) ………………………………………………………19

1. Berjaya Starbucks Coffee Company Sendirian Berhad …………........................19

2. C U Latte by Cheong Foh ……………………………………………………….19

Appendices (Interview Records) …………………………………………………….…20 – 26

1. Berjaya Starbucks Coffee Company Sendirian Berhad ………….................20 - 24

2. C U Latte by Cheong Foh ………………………………………………..…24 - 29

Minutes of Meeting …………..……………………………………………………………...30

References …………………………………………………………………………….......…31


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Key Summary

Café is derived from society’s lifestyles and extended from Europe in the midst of 17th

Century. To investigate the inequality between international and local café, the trustworthy

Starbucks in Malaysia and business-friendly Cheong Foh are chosen for the research about

the formation, development and success of café in Malaysia. Berjaya Starbucks has

comparably shown the prestige of company’s mobilisation, affiliation and administration, and

C U Latte by Cheong Foh is persevere in tradition, locality and ethical development. In

conclusion, these café businesses achieved a convergence of similarities and competitive

differences that yields different markets by using adaptive strategies in their business history

in different locations and phases of modernisation.


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History of Coffee Beans and Its Trading in Malaysia

Coffee beans was initially founded in Ethiopia in the midst of 11th Century and

rapidly spread to Yemen, Istanbul, Venice, Marseilles, Paris, Vienna, London, Holland,

Germany and America. In the midst of 1800s, British colonialists invested coffee in

Malaysia; later, the coffee is cultivated by locals and they produced own coffee products.


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Brief Description of the Businesses

Berjaya Starbucks Coffee Company Sendirian Berhad

The foremost café established as Berjaya Starbucks Coffee Company Sendirian

Berhad in range of 163 outlets, with an outlet located in Taylor’s University Lakeside

Campus. The number of employees for this outlet is 10 persons. The estimated number of

customers per daily ranges from 400 to 500 persons.

Main Products and Services

Berjaya Starbucks sell coffees according to Starbucks Roast Spectrum, which coffees

are assessed as Blonde Roast, Medium Roast and Dark Roast; consequently, the inimitable

control of temperature and time resulted in their peak of scent, acerbity, form and savour.

This company delivered customized grinding of coffee beans as well as Malaysia Starbucks

Card services. The cards aim to pertain customers’ loyalty through membership which

enhance their Starbucks experiences and reward their trust and passion for Starbucks.

Business Foundation

The founder of Starbucks is the store owner in Seattle’s historic Pike Place Market.

Starbucks in Malaysia is founded by Berjaya Starbucks Coffee Company Sendirian Berhad,

and Taylor’s University Lakeside Campus’s outlet is operated since 2010. They aimed to

provide products and services to the university students with their good employee

engagement, performance cultures and leadership.

Business History

Berjaya Starbucks undertook several major developments in form of accomplishment

and changes in the past five years. In 2011, Starbucks Malaysia advocated Starbucks Card.

Starbucks VIA Ready Brew is launched upon its discovery. In 2012, Starbucks has more than

17,600 stores and is valued at $35.6 billion. In 2013, Starbucks instigated Starbucks

Connecting Communities Project. In 2014, Starbucks generated old plan by inaugurated

Starbucks Card Mobile Application. Furthermore, Starbucks received the HR Best Practices

Gold Award, honoured by Malaysia Institute of Human Resources Management (MIHRM).

Moreover, Starbucks established the Community Computer Centre and initiated the Global

Month of Service, and they have contributed to 38 community service projects and


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accomplished 27,437 community services hours. In 2015, Starbucks was entitled “Best of the

Best” in Aon Hewitt Employers-Malaysia 2015 Awards.

Core Success

The core success of Starbucks is developed into a gigantic worldwide coffee company

which modelled market’s innovation. Their leadership in coffee specialty build business

opportunities lead by customized luxuries, dynamic retailing demography, coffee lifestyle

influences, provident leadership and interactive organizational infrastructures. Their empathy

on customers has create critical success of consistency, ingenuity and brand awareness.

Managerial Success

Berjaya Starbucks success comply with their Business Ethics and Compliance

program which safeguards outlet cultures and notoriety by ethical decision-making via

informational measures, training, investigation and communication channels. This essentially

resolved employee relation issues which is the key of potential success of the outlet.

Workplace diversity is effectively measured by headquarter to prioritize in human connection

and engagement, fairness and justice, and ease of use and barrier free. The friendliness of

outlet services is safeguarded by headquarters’ expectation with employees’ unceasing

kinship, tolerance and humanity.

C U Latte by Cheong Foh

The comparative café is C U Latte established by Cheong Foh which situated at BBK

Port Tech Tower. C U Latte is the first outlet launched by Cheong Foh in 2015. The number

of employees in this outlet is 10 persons. This company’s estimated number of customers is

in the range of 50 persons.

Main Products and Services

C U Latte sell Klang coffee species Liberica. Liberica is the only coffee commodity

historically splendid in Malaysia, with properties of lessen flavour, founders of coffeehouse

in Malaysia conduct adds-in roasting method with barley, caramel and butter. This outlet also

offered foreign coffee series from global bean belt. Their main services is customized

brewing services for coffee beans.

Business Foundation


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The founder of C U Latte by Cheong Foh is Cheong Yoke Lee, grandfather of current

coffeehouse owner. Cheong Foh is established in 1955, ranging about 60 years and C U Latte

is operated since 2015. Cheong Foh is inaugurated because of his grandfather’s family

livelihood in Malaysia since his migration from China. C U Latte is operated to meet new

demands and emerged into competitive service markets in terms of the old coffeehouse

expansion after 60 years of traditional management of local coffeehouse.

Business History

The operation of a contemporary coffeehouse, C U Latte is the prior development of a

traditional-founded coffeehouse in Malaysia. This culturally westernised and culinary

globalized coffeehouse fulfilled the customers’ demand according to the epoch of

modernization. In several years ago, Cheong Foh coffeehouse achieved international fame as

it became the primary selection for foreigner’s Klang tour according to the shop listing of

Selangor district governance.

Core Success

Cheong Foh’s core success is acting as an important, unique, supportive, innovative

and persisting coffee entrepreneurship in preserving the locality, traditional quality,

customers’ delight, commitment and healthiness in the preferences and distribution of

trustworthy coffees.


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Business Competition

Number of Competitors and Brief Bios of Top 3 Competitors


Berjaya Starbucks has more than 10 regional competitors in Taylor’s University

Lakeside Campus. The direct regional competitor is Coffee Bean and Tea Leaf, their products

and services are ice-blended coffees and flavoured teas, and Coffee Bean Card services.

Chatime is an indirect competitor which special in products such as customised contemporary

teas series and juices, and services such as Chatime Thirstea Card services, periodical

promotions and organised product’s delivery. OldTown White Coffee is an indirect

competitor that exclusive in products and services such as white coffee series, food in classic

noodles, rice and western gourmet series, and periodical promotions.


C U Latte by Cheong Foh has more than 50 regional competitors in the region of

Bandar Baru Klang. The direct regional competitors in Klang are the recent emergence of

China expansion’s coffeehouses which brought an inevitable impact on their local coffee

businesses. These competitors such as China’s expanded hotels in Computer Station had a

good success, fame, qualitative coffee processing and China’s culturally-supported coffee-

making which provide a competitive edge of coffee demands in the same markets. OldTown

White Coffee is another indirect regional competitor of C U Latte by Cheong Foh.

Hometown Hainan Coffee is another indirect competitor regionally which unique for

homemade instant coffee, tea and combination of these flavours and prior in classic breakfast,

rice, noodles and western gourmet series.

Business Competitiveness and Strategies (Direct Competitors)


Berjaya Starbucks has a higher responsive social media presence which successfully

build customers’ certainty and trust. Comparably, Starbucks disclose their awards’

recognition which create massive boost in their reputation as compared to Coffee Bean and

Tea Leaf which were seem uncompetitive.


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Implementing strategies for secondary product’s competition, Cheong Foh provide

three trustworthy manufactured flavours of gourmet tea in terms of China’s competitive tea

commodity in the global beverage market, to relocate customer’s attention on coffee to other

beverage preferences that form a new marketing direction to patronize unsatisfied customers.

Secondly, according to the global emergence of preferences on purer and cleaner filtered

coffee, Malaysian coffeehouses are proceeding to these new era of coffee-making. Cheong

Foh predictably invested in the V60 coffee filtration in encountering customer’s desertion of

flavoured coffee. In their newly established CU Latte contemporary coffeehouse, they

dedicated to the Diedrich Coffee Roaster from United States which effectively produce

overwhelming result of roasting and customer’s coffee experiences.


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Market’s Direction

New Businesses Obstacles and Alternatives


According to Berjaya Starbucks, the new businesses of coffee lacking excellence in

coffee education, which is the core foundation for café industry and baristas expertise.

Consequently, the new establishment of coffee businesses failed to execute the innovative

core of coffee delights and personalise coffee services which strengthened their customer

experiences prior to the competitive edge of contemporary café. These new businesses can

follow the leadership of notorious coffee suppliers and partners to pursue in their further

education and gain experiences in coffee entrepreneurship with their initiatives of structuring

good reputation for them.


According to C U Latte by Cheong Foh, the main obstacles is the rising cost of coffee

beans. The extraction of coffee beans are blended with the impurities during coffee harvest

and along with the increment of prices had made many coffee businesses degrading to their

cessation. The relative amount of capital investment is prior to establish a good coffee

entrepreneurship, direction, culture and market. Workforce is a problematic sourcing for local

coffeehouse businesses, because many young adults are revenue-driven, business-motivated,

luxury-dominant, and artistically manipulative instead of philosophy-manageable, coffee-

propelling, ethical-and-cultural driven and motivated for long-term success. Coffeehouse’s

location is the resolution for every coffeehouse business failure or deprivation. Many

unexperienced coffeehouse owners had encountered massive loss or termination due to the

lacking of understanding and good schemes in terms of selecting location.

Nature of Market: Current Market Economy, Consumers and Suppliers

Collaboration


The Coffee and Farmer Equity (C.A.F.E.) Practices assured proper coffee trading and

ethical sourcing of responsibly grown coffee. They promote sustainable industry that support

farmers, such as organic farming practices and Starbucks Farmer Loan programs. They


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collaborate with Mercy Corps to create tea production with good health aids, youth

engagement and economic progression.


Cheong Foh maintain a good relationship with coffee beans supplier in Klang to

continuously discover and obtain improving coffee beans in terms of long-term trading. They

have a good business relation with informative communication and experience exchanges

that can benefit the development of local coffeehouse. Many philosophical customers have

good understanding about coffee markets and truthful passion for coffee has continuously

being supportive to the coffee business. The market economy of coffee supplies has

continuously depriving dated back to last 60 years because of the agricultural pests in coffee

plantation and largely important agricultural land is being developed into commercial land.

The coffee businesses became largely dependent on huge and continuous capital investment

to sustain quality and originality of coffee products.


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Similarities and Differences

Comparison Type Comparison Context

C U Latte by Cheong Foh Berjaya Starbucks

Similarities Supporting healthiness of food

such as calorie-free beverage,

without artificial fusion, instant

coffee disapproval, coffee’s health

awareness

Offers healthy food such as

wholesome food

Cross-cultural food Diverse and globalized food

cultures

Deliver song with caffeinated

effect

Romantic music atmosphere

Provide customers with coffee

philosophy and livelihood

acknowledgement

Provide customers with coffee

selections by means of humanistic

characters and philosophy

Differences Business direction is to achieve

ethical business in terms of

quality maintenance, cultural

contribution and good customer

services.

Business direction is regulated for a

higher responsibility, assurance and

philosophy on missionary success.

High level of professionalism in

form of prolific experiences

relating to breakfast

High level of contribution to

world’s coffee agriculture by

supporting farmers with resources

and expertise of coffee.

Coffeehouse cultures perceived

the devotion of local coffee

ancestors and coffee cultures of

trustworthy Malaysian folks

Coffeehouse cultures conjured the

ardour for high seas and

navigational beliefs of the early

coffee traders

Table 1. Summarization of similarities and differences between two businesses.


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Exposition Context: Similarities and Differences

Globalization


Starbucks aim to create visionary products out of world’s coffee agriculture by

supporting farmers with resources and expertise of coffee. The foreign headquarter affirmed

every outlet as essential parts of Starbucks neighbourhood, which the outlet gain managerial

and leadership experiences in a bonding network of partners, customers and community

through their contribution channels. Subsequently, they look and act on behalf of Starbucks

beyond their boundary, with a higher responsibility, assurance and philosophy on missionary

success.


CU Latte also actively contributed to cross-cultural cuisines such as Korean-Western

pasta Gangnam style. They aimed to promote their qualitative coffees by attracting culinary-

based customers with international food as these had always been an attraction to consumers

in this globalized markets.

Café Passion and Cultures


Customers love Starbucks’ coffee selections in significance with humanistic

characters and philosophy, as if their assemblage and rest abided with respect and

appreciation. They love Starbucks specifically for their retentive and genuine services,

pleasing atmosphere with romantic appeal of chosen music, and coffee out of expertise.

Café cultures of Starbucks primarily initiated by the characterized Starbuck in Moby

Dick, conjured the ardour for high seas and navigational beliefs of the early coffee traders.

Later, after the Starbucks licensed under Howard Schultz, Starbucks aimed to create: a

consigned corner of conversation, a locality reassuring the sense of community, a mediator

between work and home. Starbucks endeavours to formulate a feeling of connection.


Cheong Foh is one of the notorious ethical business that fastened themselves with

quality maintenance, cultural contribution and good customer services. The coffeehouse

owner assured the customer’s was well-informed of their ethical coffee processing, and they

aimed to produce every good cup of coffee to serve better by contributing sufficiently and


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carefully in the processes. Their motto is always attesting their trustworthiness, ‘even by just

a bit, I'll want to make the cup that I serve better.’ They have a greater philosophy and vision

affiliated with local spirit and formation of coffeehouse, ‘the world is one, no war, no hatred,

a lot of good coffee to share.’ They have a strong will to reassure customer’s reliance on

specialty coffee preferable to the instant coffee. They have clear and selfless vision about

supporting this healthy cause because coffee market demanded for good transparency –

coffee owners want natural, fair trading and organically processed of coffee commodity. As

the potential side effects in terms of instant coffee chemical processes is the conscientious

reasoning for ethical coffee developers to motivate consumers to move way from this type of

coffee products.

CU Latte also contributed to the contemporary trend of café by enlivening atmosphere

with old-fashioned song related to coffee. They claimed the songs have caffeinated effect,

and they are satisfied for these relaxing, cheerful and delightful melody. The coffee matched

perfectly with the melody atmosphere which give coffee lovers a unique sensation, driving

them with the influential coffee philosophy by Cheong Foh brand’s good foundation

effectively stir up their inner world. Cheong Foh coffeehouse concerning and stimulate

development for calorie-free beverage. They are passionate in creating coffees with immense

of philosophy and livelihood acknowledgement, varying from most of the modernised

coffeehouse with commercial practices, implementing, insisting and appreciating the purest

method of producing coffees, according to local ancestors and coffee cultures of trustworthy

Malaysian folks, without the artificial fusion of unhealthy add-ons or processes, such as

sugar-free caramel and non-fat ingredients that brimming away with antioxidants, while

maintaining the natural extract, beverage philosophy and local gratification of traditional

method’s processing coffees. Owner of Cheong Foh which always occupied with deep faith

and affection on coffee, also has strong attachment for the origin of coffee which revolved

around Ethiopia. Their coffee practices and devoutness is upheld with their responsibility and

professionalism, professing their business honour and reliability on the coffee markets. Their

brand does not only cultivated interest and characters of coffees in every customers, but also

instilled coffee health and beverage knowledge to every heart of aficionados, and coffee

stories to active coffee lovers.

Food Cultures and Their Motives



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Starbucks promote the diversity and globalization of food cultures for international

students. For instance, the Mississippi mud muffin is associated with Southern United States

cuisine, blended with chocolate originated from Belgium. Besides that, tandum with salted

caramel, chocolate and passion fruits is invented in New Zealand, and fruity cinnamon roll

developed from Sweden. Starbucks aim to provide traditional and wholesome food which

exclude trans fats, artificial flavours and dyes, and high fructose corn syrup.


CU Latte has adapted the neighbourhood food cultures in fulfilling the regional

market demands after the realization on incompetence of marketing. Creativity and

enthusiasm on food has always been a motivation for their traditional coffee business such as

rolling pizza, colour-layered cakes of Jalur Gemilang. They also prioritized on the essence of

breakfast by innovating and improving the big breakfast, with their relevant experiences and

gratitude of these services in the past 60 years. They promote food pairing with coffees along

the informational and attractive selections which specific food brought unexpected great

effect to customer’s taste buds.


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Commercial Success

Berjaya Starbucks is interpreted as commercially successful in the comparative

analysis with C U Latte Cheong Foh in terms of the complexity of distribution network,

business motto and standardisation.

Recommendations (Competitiveness)


To enhance reformation in terms of competitiveness in coffee markets, Berjaya

Starbucks can instituted coffee research lab to monopolize coffee market demands by the

restructuration of production system which completely complement transforming trend of

market in globalization and modernization. The upsurge of consumer’s satisfaction due to

company’s professionalism and leadership can justified the emergence of new markets, in

spite of extending the sophistication of business organisation that proves impractical to

patronise the café.


To refashion the ineffective public relation between influential representative and

Cheong Foh regarding of their dedication for café’s publicity in terms of its virtuous

reputation in the coffee market, Cheong Foh shall strategically enhances familiarisation of

brand identity in markets to triggered development of beliefs and trusts that can achieved the

realization of potential partners.


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Appendices (Interview Records)


1. Name: Berjaya Starbucks Coffee Company Sendirian Berhad

2. Current location: Taylor’s University Lakeside Campus

3. Number of employees: 10 person

4. Number of branches: 2 outlets

5. Main products:

- Coffee (According to Starbucks Roast Spectrum, coffees are assessed as Blonde

Roast, Medium Roast and Dark Roast; the inimitable control of temperature and

time resulted in their peak of scent, acerbity, form and savour)

6. Main services:

- Malaysia Starbucks Card services

- Customized grinding (coffee beans)

7. Estimated number of customers: in the range of 400 to 500 person

8. How does the introduction of cards help in your business?

The cards aim to pertain customers’ loyalty through membership which enhance their

Starbucks experiences and reward their trust and passion for Starbucks.

9. How do you look into your customers’ experiences at Starbucks?

Customizing experiences of Starbucks customers, Starbucks rooted their courtesy of

services in several purposeful environmental designs, which immersed their

customers in: old heritage of past centuries, ground-breaking assembly in the hub of

cultures and arts, retreat of calm and contemporaneous hub apart from the fleeting

outer world. Starbucks also maintained their customers’ beverage experiences with

the merchandise of seasonal and qualitative drinkware.

10. Who is the founder of this outlet? When did your outlet started the business? What are

the motives behind it?

The founder of Starbucks is the store owner in Seattle’s historic Pike Place Market.

Starbucks in Malaysia is founded by Berjaya Starbucks Coffee Company Sendirian

Berhad, and Taylor’s University Lakeside Campus’s outlet is operated since 2010.

They aimed to provide products and services to the university students with their good

employee engagement, performance cultures and leadership.

11. What are your company/outlet traditions and beliefs? Do they change by the course of

time?


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Starbucks believed in the cultural values of environmental practices by launching

Greener Cups movement, environmental lighting and efficient HVAC (heating,

ventilation and cooling) investment, water reduction and retrofitting of water fixtures,

and environmental construction strategies.

12. How do you accomplish your slogan of ‘Everything we do goes into every cup you

serve’?

The higher altitudes of farming, complex network of coffee farmer support centres,

nurturance of same-rooted relationships, reiteration of coffee harvests, and the

enormous replication of testing and critical analysis are Starbucks’ industry and

confidence which testified that their coffees are every cup of customers’ love. The

philosophy of coffee roasting, blending of international great coffees, frequent

examination of coffee sourcing, and perfection of climate, soil, elevation and

agricultural practices are the boundless passion and entrepreneurial values that ends in

a cup of customer’s coffee.

13. What are the major developments, such as major accomplishment and changes, in

your business of the past five (5) years?

In 2011, Starbucks Malaysia advocated Starbucks Card. Starbucks VIA Ready Brew

is launched upon its discovery. In 2012, Starbucks has more than 17,600 stores and is

valued at $35.6 billion. In 2013, Starbucks instigated Starbucks Connecting

Communities Project. In 2014, Starbucks generated old plan by inaugurated Starbucks

Card Mobile Application. Furthermore, Starbucks received the HR Best Practices

Gold Award, honoured by Malaysia Institute of Human Resources Management

(MIHRM). Moreover, Starbucks established the Community Computer Centre and

initiated the Global Month of Service, and they have contributed to 38 community

service projects and accomplished 27,437 community services hours. In 2015,

Starbucks was entitled “Best of the Best” in Aon Hewitt Employers-Malaysia 2015

Awards.

14. What is your company’s/outlet’s core success?

The core success of Starbucks is developed into a gigantic worldwide coffee company

which modelled market’s innovation. Their leadership in coffee specialty build

business opportunities lead by customized luxuries, dynamic retailing demography,

coffee lifestyle influences, provident leadership and interactive organizational


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infrastructures. Their empathy on customers has create critical success of consistency,

ingenuity and brand awareness.

15. What is your company’s/outlet’s vision in relation to workforce expansion?

The merit of baristas envisaged Starbucks’s dream, spirit and patron about coffee. The

company’s vision on workforce expansion must be disciplined under baristas’ passion

of being trained, as disregarding the quality of coffee beans, roasting, and equipment

and tools.

16. What kind of company headquarters' management that bring success to your outlet

retail careers?

Business Ethics and Compliance program safeguards outlet cultures and notoriety by

ethical decision-making via informational measures, training, investigation and

communication channels. This essentially resolved employee relation issues which is

the key of potential success of the outlet. Workplace diversity is effectively measured

by headquarter to prioritize in human connection and engagement, fairness and

justice, and ease of use and barrier free. The friendliness of outlet services is

safeguarded by headquarters’ expectation with employees’ unceasing kinship,

tolerance and humanity.

17. Who are your regional competitors and what are their products and services?

The direct regional competitors are Coffee Bean and Tea Leaf, their products and

services are ice-blended coffees and flavoured teas, and Coffee Bean Card services.

18. What strategies have been used in response to their competition and how successful

are they?

A higher responsive social media presence build customers’ certainty and trust.

Comparably, Starbucks disclose their awards’ recognition which create massive boost

in their reputation as compared to Coffee Bean and Tea Leaf which were seem

uncompetitive.

19. What are the obstacles faced by new businesses who wish to enter your regional

market today? How can they possibly overcome it?

The new businesses of coffee lacking excellence in coffee education, which is the

core foundation for café industry and baristas expertise. Consequently, the new

establishment of coffee businesses failed to execute the innovative core of coffee

delights and personalise coffee services which strengthened their customer

experiences prior to the competitive edge of contemporary café. These new businesses

can follow the leadership of notorious coffee suppliers and partners to pursue in their


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further education and gain experiences in coffee entrepreneurship with their initiatives

of structuring good reputation for them.

20. What is the nature of your regional market? For example, current market economy,

consumers and suppliers collaboration.

The Coffee and Farmer Equity (C.A.F.E.) Practices assured proper coffee trading and

ethical sourcing of responsibly grown coffee. They promote sustainable industry that

support farmers, such as organic farming practices and Starbucks Farmer Loan

programs. They collaborate with Mercy Corps to create tea production with good

health aids, youth engagement and economic progression.

21. How do you describe your company’s vision in terms of globalization? How does

your company’s foreign headquarter influenced your locally-registered coffeehouse?

Starbucks aim to create visionary products out of world’s coffee agriculture by

supporting farmers with resources and expertise of coffee. The foreign headquarter

affirmed every outlet as essential parts of Starbucks neighbourhood, which the outlet

gain managerial and leadership experiences in a bonding network of partners,

customers and community through their contribution channels. Subsequently, they

look and act on behalf of Starbucks beyond their boundary, with a higher

responsibility, assurance and philosophy on missionary success.

22. What customers are so passionate about at your café?

Customers love Starbucks’ coffee selections in significance with humanistic

characters and philosophy, as if their assemblage and rest abided with respect and

appreciation. They love Starbucks specifically for their retentive and genuine services,

pleasing atmosphere with romantic appeal of chosen music, and coffee out of

expertise.

23. What kind of café cultures do your company preserve and is passionate about?

Café cultures of Starbucks primarily initiated by the characterized Starbuck in Moby

Dick, conjured the ardour for high seas and navigational beliefs of the early coffee

traders. Later, after the Starbucks licensed under Howard Schultz, Starbucks aimed to

create: a consigned corner of conversation, a locality reassuring the sense of

community, a mediator between work and home. Starbucks endeavours to formulate a

feeling of connection.

24. What kind of food cultures are your company promoting? What are the motives

behind these?


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Starbucks promote the diversity and globalization of food cultures for international

students. For instance, the Mississippi mud muffin is associated with Southern United

States cuisine, blended with chocolate originated from Belgium. Besides that, tandum

with salted caramel, chocolate and passion fruits is invented in New Zealand, and

fruity cinnamon roll developed from Sweden. Starbucks aim to provide traditional and

wholesome food which exclude trans fats, artificial flavours and dyes, and high

fructose corn syrup.


25. Name: C U Latte by Cheong Foh

26. Current location: Port Tech Tower

27. Number of employees: 10 person

28. Number of branches: 163 outlets

29. Main products:

- Klang coffee species Liberica. Liberica is the only coffee commodity historically

splendid in Malaysia, with properties of lessen flavour, founders of coffeehouse in

Malaysia conduct adds-in roasting method with barley, caramel and butter.

- Foreign coffee series from global bean belt.

30. Main services: Customized brewing services (coffee beans)

31. Estimated number of customers: in the range of 50 person

32. Who is the founder of this company/outlet? When did your company/outlet started the

business? What are the motives behind it?

The founder of C U Latte by Cheong Foh is Cheong Yoke Lee, grandfather of current

coffeehouse owner. Cheong Foh is established in 1955, ranging about 60 years and C

U Latte is operated since 2015. Cheong Foh is inaugurated because of his

grandfather’s family livelihood in Malaysia since his migration from China. C U Latte

is operated to meet new demands and emerged into competitive service markets in

terms of the old coffeehouse expansion after 60 years of traditional management of

local coffeehouse.

33. What are your company/outlet traditions and beliefs? Do they change by the course of

time?

Cheong Foh is the one of the coffeehouses that persist the tradition and strategy of

expanding local coffees business and select the specialty coffee without accepting the

market demands on commercial coffee. They insist on the healthiness and quality of


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coffee in terms of traditional, purified, and non-commercial method of coffee beans

roasting; and the time-consumption and excellency largely revolved around

parchment coffee checking processes. According to him, Malaysia was ranked 45th

top coffee consuming country in the world in 2013, with 1.3kg of beans consumed per

person on average. This is the outstanding business indication which largely locals

considering and preferring thick coffee, a strong black coffee served purely with

sugar. They has a strong intuition and business knowledge about the local coffee

products and with abundant experiences on running a local coffeehouse, they have

exceptional determination, driving motivation and strong temperament in local coffee

management, from the plantation, they chose good coffee species Liberica cultivated

in Klang, which is the unique taste from local agricultural ancestors and local

environment, through careful handpicking processes, watchful progressions, thorough

sorting procedures, thoughtful roasting to the careful formulation and traditional skills

of caramel-coating, and delicate brewing of coffee beans. Similar to certain coffee

traditional cultures such as Ethiopian Yirgacheffe, coffee in Malaysia has the similar

preparation ritual such as brewing of used coffee grains several times to meet the

lessen flavour preferences of local folks. They played an important role in preserving

the unique coffee cultures of Malaysia and thereby maintaining the local demands for

Klang coffee. Cheong Foh adapted the local and traditional making of coffees into the

foreign coffees, concentrating on the purity, essence and authenticity of processing

and instilling the same effort and coffee philosophy in the quality-making of foreign

coffees, which make them in good account and attraction to foreign and local

customers.

1. What are the major developments, such as major accomplishment and changes, in

your business of the past five (5) years?

The operation of contemporary coffeehouse is the prior development of a traditionally

founded coffeehouse in Malaysia. This culturally westernised and culinary globalized

coffeehouse fulfilled the customers’ demand according to the epoch of modernization.

In several years ago, Cheong Foh coffeehouse achieved international fame as it

became the primary selection for foreigner’s Klang tour according to the shop listing

of Selangor district governance.

2. What is your company’s core success?

Cheong Foh’s core success is acting as an important, unique, supportive, innovative

and persisting coffee entrepreneurship in preserving the locality, traditional quality,


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customers’ delight, commitment and healthiness in the preferences and distribution of

trustworthy coffees.

3. What is your company’s/outlet’s vision in relation to workforce expansion?

4. Cheong Foh has critical vision and strategies in expanding and cultivating workforce

for the coffeehouse development, but market demands is unsatisfactory due to young

adults occupational and taste preferences, inconsistency and disloyalty of trained

employees, and the lacking of motivation and interest in managing local and

traditional established coffeehouses. They have unwavering determination, sufficient

acknowledgement and experiences, long-lasting patience and implementation of

attractive policies in terms of trials and hardships of expanding their workforce in

their local coffeehouses. They aimed to preserve and continuously practice the

passionate-driven and customer-friendly approaches in terms of workforce direction

of their coffeehouses.

5. Who are your (regional/Starbuck) competitors and what are their products and

services?

The recent emergence of China expansion’s coffeehouses had brought an inevitable

impact on their local coffee businesses. Their competitors such as China’s expanded

hotels in Computer Station had a good success, fame, qualitative coffee processing

and China’s culturally-supported coffee-making which provide a competitive edge of

coffee demands in the same markets.

6. What strategies have been used in response to their competition and how successful

are they?

Implementing strategies for secondary product’s competition, Cheong Foh provide

three trustworthy manufactured flavours of gourmet tea in terms of China’s

competitive tea commodity in the global beverage market, to relocate customer’s

attention on coffee to other beverage preferences that form a new marketing direction

to patronize unsatisfied customers. Secondly, according to the global emergence of

preferences on purer and cleaner filtered coffee, Malaysian coffeehouses are

proceeding to these new era of coffee-making. Cheong Foh predictably invested in the

V60 coffee filtration in encountering customer’s desertion of flavoured coffee. In their

newly established CU Latte contemporary coffeehouse, they dedicated to the Diedrich

Coffee Roaster from United States which effectively produce overwhelming result of

roasting and customer’s coffee experiences.


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7. What are the obstacles faced by new businesses who wish to enter your market today?

How can they possibly overcome it?

The main obstacles is the rising cost of coffee beans. The extraction of coffee beans

are blended with the impurities during coffee harvest and along with the increment of

prices had made many coffee businesses degrading to their cessation. The relative

amount of capital investment is prior to establish a good coffee entrepreneurship,

direction, culture and market. Workforce is a problematic sourcing for local

coffeehouse businesses, because many young adults are revenue-driven, business-

motivated, luxury-dominant, and artistically manipulative instead of philosophy-

manageable, coffee-propelling, ethical-and-cultural driven and motivated for long-

term success. Coffeehouse’s location is the resolution for every coffeehouse business

failure or deprivation. Many unexperienced coffeehouse owners had encountered

massive loss or termination due to the lacking of understanding and good schemes in

terms of selecting location.

8. What is the nature of your market? For example, current market economy, consumers

and suppliers collaboration.

Cheong Foh maintain a good relationship with coffee beans supplier in Klang to

continuously discover and obtain improving coffee beans in terms of long-term

trading. They have a good business relation with informative communication and

experience exchanges that can benefit the development of local coffeehouse. Many

philosophical customers have good understanding about coffee markets and truthful

passion for coffee has continuously being supportive to the coffee business. The

market economy of coffee supplies has continuously depriving dated back to last 60

years because of the agricultural pests in coffee plantation and largely important

agricultural land is being developed into commercial land. The coffee businesses

became largely dependent on huge and continuous capital investment to sustain

quality and originality of coffee products.

9. How did your company’s foreign food impacted on company’s culture?

CU Latte also actively contributed to cross-cultural cuisines such as Korean-Western

pasta Gangnam style. They aimed to promote their qualitative coffees by attracting

culinary-based customers with international food as these had always been an

attraction to consumers in this globalized markets.

10. What customers are so passionate about at your café? What kind of café cultures do

your company preserve and is passionate about? Are these related to each other?


28 | P a g e

Cheong Foh is one of the notorious ethical business that fastened themselves with

quality maintenance, cultural contribution and good customer services. The

coffeehouse owner assured the customer’s was well-informed of their ethical coffee

processing, and they aimed to produce every good cup of coffee to serve better by

contributing sufficiently and carefully in the processes. Their motto is always attesting

their trustworthiness, ‘even by just a bit, I'll want to make the cup that I serve better.’

They have a greater philosophy and vision affiliated with local spirit and formation of

coffeehouse, ‘the world is one, no war, no hatred, a lot of good coffee to share.’ They

have a strong will to reassure customer’s reliance on specialty coffee preferable to the

instant coffee. They have clear and selfless vision about supporting this healthy cause

because coffee market demanded for good transparency – coffee owners want natural,

fair trading and organically processed of coffee commodity. As the potential side

effects in terms of instant coffee chemical processes is the conscientious reasoning for

ethical coffee developers to motivate consumers to move way from this type of coffee

products. CU Latte also contributed to the contemporary trend of café by enlivening

atmosphere with old-fashioned song related to coffee. They claimed the songs have

caffeinated effect, and they are satisfied for these relaxing, cheerful and delightful

melody. The coffee matched perfectly with the melody atmosphere which give coffee

lovers a unique sensation, driving them with the influential philosophy by Cheong

Foh brand’s good foundation effectively stir up their inner world. Cheong Foh

coffeehouse concerning and stimulate development for calorie-free beverage. They

are passionate in creating coffees with immense of philosophy and livelihood

acknowledgement, varying from most of the modernised coffeehouse with

commercial practices, implementing, insisting and appreciating the purest method of

producing coffees, according to local ancestors and coffee cultures of trustworthy

Malaysian folks, without the artificial fusion of unhealthy add-ons or processes, such

as sugar-free caramel and non-fat ingredients that brimming away with antioxidants,

while maintaining the natural extract, beverage philosophy and local gratification of

traditional method’s processing coffees. Owner of Cheong Foh which always

occupied with deep faith and affection on coffee, also has strong attachment for the

origin of coffee which revolved around Ethiopia. Their coffee practices and

devoutness is upheld with their responsibility and professionalism, professing their

business honour and reliability on the coffee markets. Their brand does not only

cultivated interest and characters of coffees in every customers, but also instilled


29 | P a g e

coffee health and beverage knowledge to every heart of aficionados, and coffee

stories to active coffee lovers.

11. What kind of food cultures are your company promoting? What are the motives

behind these?

CU Latte has adapted the neighbourhood food cultures in fulfilling the regional

market demands after the realization on incompetence of marketing. Creativity and

enthusiasm on food has always been a motivation for their traditional coffee business

such as rolling pizza, colour-layered cakes of Jalur Gemilang. They also prioritized on

the essence of breakfast by innovating and improving the big breakfast, with their

relevant experiences and gratitude of these services in the past 60 years. They

promote food pairing with coffees along the informational and attractive selections

which specific food brought unexpected great effect to customer’s taste buds.


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Minutes of Meeting

Date: 12th January 2016

Time: 1 – 2pm

Venue: Level 3, Taylor’s Library

Names of Group Members Tutorial Group Role

Jiji Ng Wed, 6.30 – 8.30pm Chairperson

Wong Yun Teng Wed, 6.30 – 8.30pm Secretary

Mashruk Asad Wed, 6.30 – 8.30pm Member

Janson Chen Wed, 6.30 – 8.30pm Member

Tan Tee Jane Tue, 2 – 4pm Member

Ho Hong Lok Wed, 6.30 – 8.30pm Member

Jason Goh Wed, 6.30 – 8.30pm Member

Pau Jin Wei Wed, 6.30 – 8.30pm Member

No

.

Activity Action taken by

1 Introduction Jiji Ng

2 Assigning tasks Jiji Ng, Wong Yun Teng

3 Agreement of work

distribution

Mashruk Asad, Wong Yun Teng, Janson Chen, Ho Hong

Lok, Pau Jin Wei, Jason Goh, Tan Tee Jane


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References

1. Berjaya Starbucks Coffee Company. Retrieved from

http://www.starbucks.com.my/.

2. C U Latte by Cheong Foh. Retrieved from

https://www.facebook.com/culattebycheongfoh/.

3. The origin of coffee. (2010, March 27). The Telegraph. Retrieved from

http://www.telegraph.co.uk/foodanddrink/7507026/The-origin-of-coffee.html.

4. History of coffee. Turkish Coffee World. Retrieved from

http://www.turkishcoffeeworld.com/History-of-Coffee-s/60.htm.

5. Coffee Facts: history of coffee. Owl. Retrieved from

http://www.owl.com.sg/page.php?

levelid=B534R532S534&n=History+Of+Coffee&id=X534P532F535.

6. Chatime. Retrieved from http://www.chatime.com.my/main/index.php.

7. OldTown White Coffee Company. Retrieved from http://www.oldtown.com.my/.

8. Hometown Hainan Coffee Company. Retrieved from

http://www.hometowncoffee.com.my/#fb0=5.

9. Neves, M. F., Kalaki, R. B. & Trombin, V. G. (2011, May 17). The future

competitiveness of the café do cerrado: key elements for success to the first

Brazilian geographical indication. Symposium Papers. Retrieved from

http://www.ifama.org/files/conf/2011/Symposium%20Papers/427_Symposium

%20Paper.pdf.


http://www.ifama.org/files/conf/2011/Symposium%20Papers/427_Symposium%20Paper.pdf

http://www.ifama.org/files/conf/2011/Symposium%20Papers/427_Symposium%20Paper.pdf

http://www.hometowncoffee.com.my/#fb0=5

http://www.oldtown.com.my/

http://www.chatime.com.my/main/index.php

http://www.owl.com.sg/page.php?levelid=B534R532S534&n=History+Of+Coffee&id=X534P532F535

http://www.owl.com.sg/page.php?levelid=B534R532S534&n=History+Of+Coffee&id=X534P532F535

http://www.turkishcoffeeworld.com/History-of-Coffee-s/60.htm

http://www.telegraph.co.uk/foodanddrink/7507026/The-origin-of-coffee.html

https://www.facebook.com/culattebycheongfoh/

http://www.starbucks.com.my/

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