IceCoffee Sdn. Bhd. is a local brand company in Malaysia. It started operations in 2015 as a small scale enterprise and headquartered in Kuantan, Pahang. As a growing local brand, IceCoffee not only sells a variety of coffee products (e.g. coffee beans, ground coffee, instant coffee, coffee capsules, creamers, and sweeteners), but also offers coffee accessories for coffee lovers and café at all levels, featuring multiple brands and choices. The company adopted an online sales strategy, specifically through own company's website, Shopee, and Lazada, with a few number of sales agents and no physical stores in operation. IceCoffee heavily relied on personal recommendations through word of mouth from its customers. They also took part in a few food and beverage expos to promote their products to the public.

Recently, the Sales Manager of IceCoffee, Mr. Hafiz, faced a dilemma after meeting three of the company's main customers. The customers suggested that IceCoffee should consider opening its own Coffee shop as some customers felt the need for a personalized experience before purchasing coffee products. Sometimes, they felt reluctant to place an order due to unfamiliarity with certain flavored coffees, and most of time they also had difficulty accessing online sites, which eventually led to limited or no purchase.

Mr. Hafiz was sitting in his office, finalizing the incoming order for IceCoffee. Upon reviewing the figures, he noted that the orders received were consistent with the previous months. Deep in his mind, he knew that he had to address the status quo of orders and the growing competition in the coffee market.

Mr. Hafiz thinks that he may need to scan the internal and external environment to determine whether it is feasible to open coffee shops or to maintain an online business. While an online business may be cost- and manpower-saving, there may also be significant opportunities for physical stores to thrive by enlightening customers' buying experience. Some customers may prefer to interact with the product in real life and enjoy a personalized experience. The ability to see, touch and taste products is one of the many reasons customers choose to shop in stores rather than online. Constomers like to interact and seek advice from the sales associates in their purchasing experience. However, operating physical stores may raise operational cost of a business. Thus, Mr. Hafiz begins to consider whether he really needs to suggest to the company director to establish more channels for their coffee business to compete and boost future sales.

a) Explain the change that Mr. Hafiz intends to suggest for implementation in the company and its trigger(s). 

Answer rating: 100% (QA)

Solution Mr Hafiz intends to suggest the implementation of a new business strategy for IceCoffee whi... View the full answer