The start-up of a distribution of gourmet Coffee Bean company in Malaysia

Teoh, Kok Seong (2021) The start-up of a distribution of gourmet Coffee Bean company in Malaysia. [Dissertation (University of Nottingham only)]

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Gridlock Coffee (M) Sdn Bhd is aiming to be registered in the Company Security Commission in Kuala Lumpur, Malaysia. Gridlock Coffee Malaysia will enter into the business of distributing of premium Coffee beans in the Food and Beverage industry for the segment of restaurants and café in Malaysia.

The office of the company will be located in a unit inside a SoHo office building with 1500sf in the area of Bukit Jalil in Kuala Lumpur. The location is in the company’s target customer area and also strategically between Selangor and the City Centre of Kuala Lumpur. The office will serve a benefit of saving the time and cost of delivery for the company due to the location is surrounded by well develop and convenient highway. Besides that, the office location is also surrounded by the noble residential area, colleges, and offices which consist of the largest group of people who are looking for premium coffee, where they will be the main target for Gridlock Coffee Malaysia.

Gridlock Coffee Malaysia will offer a faster lead time for delivery due to the convenient location of the office which will be made the delivery more efficient for the company. This will also serve as a good customer service point to increase a strong relationship with the customer. By doing all this, a more trusted and strong relationship will be built between Gridlock Malaysia and the customer.

Gridlock Coffee Malaysia will be incurring a high start-up cost and result in making a loss in year 1 of operation. However, as shown in sales forecasts, sales will increase significantly in year 2 of operation, the company is expected to breakeven at the end of 3rd quarter in year 2 of operation. It also means that Gridlock Malaysia will initially making a profit from the 4th quarter in year 2 of operation. However, Gridlock Malaysia will mainly market its product through direct sales approach channels and search engine optimization in an online search.

As the company continues to expand, Gridlock Coffee Malaysia will be aiming to expand the business through entire Southeast Asia. This is due to the company is partnering and maintain a contract of 10 years with Gridlock Coffee Australia with the offer of a longer credit term from them and also technical knowledge transfer from Gridlock Australia. Also, the short credit terms for the customer are the main factor for Gridlock Coffee Malaysia to enjoy a more positive cash flow initially from the 4th quarter of year 2 operation. Gridlock Coffee Malaysia's future performance will be determined by all this factor.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Teoh, Kok
Date Deposited: 04 Aug 2021 01:59
Last Modified: 04 Aug 2021 01:59

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