SECTION 1

Introduction

"Keropok Lekor" is a traditional fish sausage normally consumed as a morning and

evening snack. Made from a mixture of minced fish meat and tapioca flour to form a dough, it is

processed into a cylindrical shape and boiled before it is fried. Its texture is fine with a crispy and

soft bite into delicious Chile sauce. Nutritionally, “keropok lekor” are rich in protein, calcium

and potassium. This traditional method of preparation usually means that the “keropok lekor”

can only have a shelf-life of 1-2 days. Reformulation of keropok lekor by adding modified waxy

corn starches; the keropok lekor can be kept in frozen up to six months with acceptable in taste

and appearance. Also, oil absorption into keropok lekor after frying can be reduced.

Here the ideas comes from Mr Hasanudin Bin Yakob to involve in food industry and the

main ideas that he had in his mind was “keropok lekor”. The demand of “Keropok Lekor” in his

location is high because for that time the food was imported from Terengganu as the biggest

supplier in Malaysia. He was born and raised in Johor. One factories has been establish in Muar

because of the high demand from the local consumer for “Keropok Lekor”. An idea was realized

by attempting to build own recipe to make this product which finally has successful to cater the

market in Johor. Starting with only 4 workers, Mr Hasanudin has increase his worker to meet the

requirement of the market and now the company has 30 workers from the local people. In line

with the call from government for economic development of the people, job opportunities for

local are highly preferred. In the early establishment of the company at the year 2011, this

company has taking steps to expanding the market for the product in the states of Malacca.

Research has been done to study the market in the states and it is confirm that this states has a

potential to expanding the product.

Company’s Objective

Producing nutritious food products

Promoting Halal food

To compete with other well-known companies in the global market

Get maximum profits

Controlling the distribution and marketing of products

Company’s Vision

Successful entrepreneur and listed as one of the Malaysian millionare.

Company’s Mission

Become a leading manufacturer of “Keropok Lekor” in Malaysia.

Providing high quality product.

Expanding throughout the Malaysia market.

SECTION 2

Background/description of the entrepreneur

Name : Muhd Fikri Bin Hasanudin

IC Number : 871220-01-5065

Address : No.10, Jalan Ria 1/1,

Taman Ria Jalan Salleh,

84000 Muar, Johor Darul Takzim

Date of Birth : 20 December 1987

Age : 27

Sex : Male

Maritial Status : Single

Race : Malay

Religion : Islam

Highest Education : Diploma in Automotive

Work Experience : 4 Years

Phone Number : +6013-9621004

Muhd Fikri Bin Hasanudin is the second son from three siblings. Born in the year 1987,

he is now 27 years old. As this was family business, his father has given him the chance to

manage business at Melaka 2 years ago which at that time he only 25 years old. Even at the

young age, he was given trust by his father to manage business for Melaka branch.

After he finish his high school, he went to further his study in Politeknik Ungku Omar

located in Perak. So he started his study and travel from his hometown Muar to Ipoh. For three

years study to finish his diploma in Automotive Engineering he gain many knowledge to help

him to become better person. After finishing his diploma, her father did not straight away give

him a chance to manage their family business instead he was told by his father to gain more

experience by working in company which suitable with his diploma in automotive field.

His first work experience is working with Malaysia’s vehicle inspection specialist

Puspakom as technician. He work for two years before leaving that company to join other

company. He then continue his career with Toyota Malaysia as sales consultant. In this company

he was working at Kuala Lumpur. He worked with Toyota Malaysia for two year before leaving

that company.

After all of his working experience, he started to manage business in Melaka factory with

the main product is “Keropok Lekor”. Despite his young age, he thinks he was ready to continue

their family legacy in producing Keropok Lekor. Under his father surveillance and guidance, he

can handle all the challenges in the early years he involved.

Company Organization Chart

Hasanudin Yaakob

(Excutive Director)

Rubiha Hassan

(Administration and account)

Hasanudin Yaakob

(General Manager)

Khairulihsan Hasanudin

(Manager Muar)

Muhd Fikri Hasanudin

(Manager Melaka)

Fitri Johari

(Sales Exec)

Md Ayub B. Ali

(Supervisor)

Azrin B. Satuan

(Supervisor)

Zubaidah

Aishah

Linda

Mahathir

Arif

Yazid

Sulaiman

Azim

Wafie

Akbar

Amirul

Sarah

Azizah

Rosnani

Hidayah

Azmin

Rafiee

Hafiz

SECTION 3

Company Background

Company Name : Tradisi Food Industri

Address : No 9, Jalan IKS 8,

Batu Berendam, 75350,

Melaka.

Company Registration Number : MA0112242-K

Office Number : 09-6816516

Phone Number : 017 - 2688 996

Email : tradysifood@yahoo.com

Year of Incorporation : 2009

Account Number : 563037013949

Bank Account : MAYBANK

Type of Business : Sole Proprietary

Company History

In the year 2009, when Hasanudin Hj. Yaakob try kneading the mixture of flour and fish

meat recipes authentic tradition keropok lekor, he did not expect to go this far in the process

industries keropok lekor in particular and massive. At first, he only intends to make keropok

lekor as one product only, in addition to processing keropok kering is in full swing. Several years

of experience in the industry this fishery products, made him so confident that the processing

industry keropok lekor will give good returns if developed specifically and intensively.

This is evidenced by the tremendous market demand. Starting with the mix of 5kg, now

Production Company has already increased to over 40 tons per month. Along with the increasing

demand, the company has undergone a process of transformation from a small factory, now the

company has moved to a larger factory in order to accommodate the machines and processing

equipment in order to accommodate the increasing amount of production time. The main office

of Tradisi Food Industries at Muar, Johor with address No.10, Jalan Ria 1/1, Taman Ria, Jalan

Salleh, 84000 Muar, Johor.

At present, our company is working on a marketing strategy extensively to appoint agents

in every major area and surrounding states. The preliminary step so that more people can receive

as well as on our products is the branding of the product itself. If the first move products through

agents without any introduction, now it appears majestic with its own brand of "Q'FIS", which is

expected to be able to capture the market in the south of the country this year. This is further

heightened by ownership HALAL status in 2011.

In early 2011, the company has started to expand the marketing of products in Malacca.

Marketing research are made and proven Malacca enough potential to expand marketing keropok

lekor. Plans and organizational structure are discussed in detail for the opening of a branch.

Views and opinions of the public and colleagues adds further strength to create branch.

Once agreed, location search strategy was conducted. This is because the location of the

branch is very important to meet the diverse aspects. Among them is the area around the plant

should be clean and uncontaminated. This is because the process of making food should be clean

and managed to ensure the quality of food produced at a maximum level of cleanliness.

In September 2011, the search location has been determined and finally decided to rent a

factory building at No. 9, Jalan IKS Merdeka, Malacca Berendam 75 350 Miles. This location is

very strategic as it is located around the middle of Malacca and not far from the city of Melaka.

Once there is a branch in Melaka, marketing activities underway to expand the product to

the rest of Malacca. Until now the market for branches around the city of Malacca is Malacca,

Jasin, Bemban, Alor Gajah, Masjid Tanah, Port Dickson, Nilai and Sepang.

Challenges during the early years

The demand for fish-based food product is very high, especially crackers. The first few

years of small business ownership is undoubtedly the most difficult, as a test of the nature of

entrepreneurship. Many of the problems encountered during the first year of incorporation Q'fis.

According Mr Fikri bin Hasanudin Q'fis branch manager of the problems faced is the problem of

getting loans from banks and financial. In Malaysia, there are a variety of credit and loan

facilities provided by various banks and other financial agencies. But many small firms factor to

obtain loans. Among them is the absence of complete financial records and systematic and no

suitable collateral and guarantors. Thus, financial institutions offering loans to firms feel small is

a higher risk than lending to larger firms.

The second factor is the return of profits in the early years. Production of fish products is

less satisfactory than operators of large firms. This is due to the lack of capital to finance the

machine tools are expensive in which it can improve earnings. As a result, the poor production

would affect the company's return. Low returns will cause small firms face difficulties in adding

machine tools that improve productivity or expanding firms. In addition, the firm's management

of low and unsatisfactory. Low returns caused the Q'fis weaker and less attractive for the banks

and lending institutions.

The third problem is the labor force. Ability, success and the establishment of small and

medium-sized firms are not only determined by a steady source of funding but also require

skilled labor and knowledge more talented. Shortage of skilled labor in the field of technology is

one of the most common problems faced by most of the small firms. The main cause of this

problem is due to lack of training schemes offered by the government or private parties for teens.

Educated labor force using computers and machine tools, the power output cannot be increased.

In addition, the technology also frequently change and every change involving complex

technology. As a result, the labor force should be constantly trained and channeled knowledge

modern technology that the productivity can be enhanced.

Many small firms entrepreneurs recognize that their employees are poorly trained

compared to large firms. One of the main reasons is that they are not able to provide training

courses to employees. In addition, experienced trainers to train harder employed workers. If there

is such a coach, the FKS not able to hire the trainee. In the meantime, most of the labor force in

small firms have a low degree of formal education. There are also a handful of labor in small

firms have no formal education.

Low level of education among the labor force is also inhibit the absorption of them in

training is low due to the inability of language proficiency and general knowledge. Lack of

skilled labor is greater among FKS, small firms and medium-skilled labor loss due to join a firm

or a large company that offers salary and benefits far higher and more comfortable working

environment and good. This is not only common among small firms, but this is also true of large

firms where they compete for talent. This would of course, the government and the private sector

should provide plenty of appropriate technical training center or offer technical training to each

labor force, rather than competing to get labor from among the same or take foreign labor to

meet their needs. So, the ability to provide and the skills and training is an important thing in

Malaysia.

The next challenge is a marketing problem. Marketing research is crucial before starting a

business. Problems arise in the market and marketing due to several key factors. The main causes

of this is the quality of the product; price of the product; the absence of perfect marketing

strategy and others. Wage labor in Malaysia have risen high, the cost of transportation and

delivery is high, the firm is also a consequence of high production costs. This situation leads to

higher product prices. For example, wage labor in China is cheap unknown, transportation costs

are also low. The absence of a perfect marketing strategy to affect the sales of local products.

Commonly used strategy may include the provision of good service before and after sell products

to customers, with an attractive packaging, and corporate marketing systems that caliber. The

absence of appropriate packaging system is also a factor. In fact, the packaging is pretty sure to

attract customers to buy goods. Customers are now more concerned with the packaging,

sometimes they are attracted by the beautiful packaging, and then they will buy the product

because it is packaged beautifully. The other thing is the lack of systems and marketing

corporation that caliber.

Other challenges are technological problems. Technology in general can be defined as a

collection of network manufacturing or manufacturing techniques that can be associated with any

one industry sector or industrial products. In general, the technology can be considered as a

system of rational knowledge based on science, engineering and electronics knowledge. Many

problems were faced by FKS when determining the appropriate technology. These include lack

of expertise, skilled engineers and information about new technologies and changes in the supply

of corporate information rapidly changing technology. This problem is mostly the result of a lack

of resources as well as research and development corporation incomplete.

Challenge a host of others is the problem of building and site that suits. Lack of buildings

and sites suitable for FKS has become a fact. This deficiency has avoided FKS had to

manufacture them in residential areas and in the back yard operators. Thus it affects the quality

of production. Entrepreneurs who have factories and firms located less suitable intend to transfer

to a more appropriate industrial zones. But they worry about the cost as well. This is due to move

into industrial zones will take high cost of high rent.

The next challenge is the problem of raw material shortage of raw materials is one of the

tricky problems to overcome. The effect of this problem is that the raw materials that will lead to

high production costs. Sometimes this causes a lack of raw material products cannot be delivered

on time. FKS had to pay damages which must meet the requirements of the signed agreement.

The main phenomena causing these increases are not enough raw materials, raw materials market

speculation and natural disasters.

Challenge competition is a problem in the early days of the company Q'fis. This is

because companies are forced to compete with the large companies that are well established in

the industry. The next challenge is to get a business license. Industrialized Act launched in the

1970s, the complexity of small firms and medium-sized manufacturing license. FKS is not only

required to obtain a business license but still need to obtain manufacturing licenses.

Company activities

In order to start the Small and Medium Enterprises (SME) business activity, Mr. Fikri bin

Hasanudin obtain a business license and a premises license from the local authority. Next step is

about to get the funding and grants for the SME business. He said that the government offers

various forms of financial assistance to SMEs. This assistance is channeled through agencies

responsible and also through financial institutions. He mention that many loan facilities available

to who wants to involve in SME business for example Government financial institutions,

commercial bank and also financial companies.

Advisory and Consultancy

Here, Mr. Fikri bin Hasanudin said to us entrepreneurs and investors who want more exposure of

SMEs can obtain advisory services provided by government agencies and some other body

which are:

Advisory services and technical support

Expert advisory panel of SMEs (SEAP)

Infrastructure

MARA consultant conscription

The development of business infrastructure (BPI)

Sections development of small and medium

SME Consultancy Sdn Bhd

SMI Association of Malaysia

For the training and development, he stated government provides a range of training and

development programs for entrepreneurs and investors who are interested in working on SME

activities. The government agencies including:

Corporation for Small and Medium Industry Development (SMIDEC)

Majlis Amanah Rakyat (MARA)

Ministry of Entrepreneur and Cooperative Development (MeCD)

Development Corporation for Small & Medium Enterprises (SMIDEC)

Corporation for Small and Medium Industry Development (SMIDEC) is the main government

agency responsible for coordinating the development of the sector. In addition to offering advice

on the development of the industry, the agency provides training and development programs for

the public and SMEs which are:

Industrial linkage program

Global supplier program

Skilling

Majlis Amanah Rakyat (MARA)

Majlis Amanah Rakyat (MARA) is a government agency established to encourage, guide and

train indigenous peoples, particularly in rural areas, to participate in the activities of trade and

industry. Here is a training and development programs provided by MARA entrepreneurs:

Entrepreneurship Training

Apprenticeship training scheme

Marketing promotion programs

Ministry of Entrepreneur and Cooperative Development (MeCD)

Ministry of Entrepreneur and Cooperative Development (MeCD) is the primary agency

responsible for coordinating the development. Here is a training and development programs

provided by MeCD entrepreneurs:

Basic business training (LAP)

Basic Training for Graduate Entrepreneurship

Integrated marketing programs furniture

Courses / Workshops Organized Entrepreneurship Entrepreneurship Training

Entrepreneurship Courses National Institute of Entrepreneurship system (GIS)

Organized Training Franchise Division and Vendors

List of activities of Tradisi Food Industries from year 2006 until 2011

No Agencies Date Courses program

1 Department of Fisheries 11-15 July 2006 Fish product processing base course

(Otoshimi and Surimi)

2 Department of Agriculture 3-5 December

2006

Entrepreneurial development workshops

and guidance counselors

3 Department of Agriculture 11 July 2007 IMO technology for agriculture and

environmental conservation

4 Department of Agriculture 23-25 July 2007 GMP courses and food regulation act

5 Department of Fisheries 27-30 August

2007

Entrepreneur coaching workshop program

project processing

6 Department of Fisheries 27 August – 2

September 2007

Competition for agricultural produce

7 Department of Fisheries 9-11 September

2007

SME processing industry consultation

meetings and workshops towards GMP

certification

8 Department of Fisheries 28-30 April

2009

Development workshops cracker operators

9 Department of Fisheries 3-6 June 2009 Fisheries consultative council

10 Department of Fisheries 23-25 June GMP briefing

2009

11 Department of Fisheries 5-6 October

2009

Presentation coaching entrepreneur

fisheries department (processing)

12 Department of Fisheries 4-6 November

2009

Entrepreneur workshop and China business

culture

13 Department of Veterinary 21 April 2010 Agro-based project manager

14 Department of Fisheries 23-25 May

2010

Agro-industry entrepreneurs workshop and

mentors Department of Fisheries

15 Paisley Consultant 5-6 April 2011 Certification and food safety briefing

Business development activity

Business development unit was formed in line with the needs and development that has been

moving towards a larger market and widespread. The first move is branding of the product and

thus the company officially introduced the brand Q'FIS as a trademark of ‘keropok lekor’

product.

This logo officially has been registered as a Trade Mark (TM) through MyIPPO on middle of

year 2010.

List of achievement of Tradisi Food Industries

Year Achievement / Awards Place

2006 Pertandingan Produk Pemprosesan Makanan Sempena

HPPNK 2006 – Serdang, Selangor

Second

2011 Pertandingan Hasil-Hasil Pertanian Pemprosesan

Keropok Lekor Peringkat Negeri Johor – Ayer Hitam

Kluang

Second

2011 Pertandingan Hasil-Hasil Pertanian Kategori Keropok

Lekor Peringkat Hari Peladang Kebangsaan

Second

SECTION 5 : APPENDICES

Company Registration Certificate

Business License

QMS Internal Auditors Certificate

Trademark Certificate

Worker processing Keropok Lekor

Group Member with Mr Fikri

Group Member with Mr Fikri