COMPANY ANALYSIS

Poly-Xtract Sdn Bhd

TECHNOLOGY ENTREPRENEURSHIP (ENT600) : CASE STUDY

FACULTY & PROGRAMME : Faculty of Chemical Engineering (FKK) – EH220

GROUP : EH220 7A

PROJECT TITLE : Poly-Xtract Sdn Bhd Case Study

GROUP MEMBERS : 1. MUHAMMAD SYAHSAIFULLAH BIN OSMAN (2016577903)

2. MUHAMAD AMNI RABANI BIN ELIAS (2016728733)
3. MUHAMMAD SHATIR BIN ROOSLEE (2016577413)
4. MUHAMMAD HARIZ BIN MIOR MUZAMIN (2016341173)
5. MHD BADHRUL BIN BAHAR (2016589039)

LECTURER : ASSOCIATE PROFESSOR DR ZARINA SALLEH

DATE SUBMITTED : 1 APRIL 2020
 GROUP MEMBERS INTRODUCTION

MUHAMMAD SHATIR BIN ROOSLEE MUHAMAD AMNI RABANI BIN ELIAS

MHD BADHRUL BIN BAHAR

MUHAMMAD HARIZ BIN MIOR MUHAMMAD SYAHSAIFULLAH BIN OSMAN

MUZAMIN MUHAMMAD
HARIZ BIN MIOR MUZAMIN
 ACKNOWLEDGEMENT

Assalamualaikum W.B.T

We all had a support and guidance of some esteemed individuals, who deserve our
greatest gratitude in carrying out our assignment. Completing this assignment gives us great
pleasure. We would like to express our gratitude to ASSOCIATE PROFESSOR DR ZARINA
SALLEH, ENT 600 Instructor and lecturer, UiTM Shah Alam for providing us with a successful
assignment guidance during multiple consultations and classes. We would also like to
acknowledge with great appreciation the crucial role played by the manager of Poly-Xtract
Sdn. Bhd., Ms. Siti Fatimah binti Elias, who gave us all the permission for the interviews and
the requisite materials to complete the task "Entrepreneurship Fundamentals".

We would also like to extend our sincere gratitude to all those who have guided us in
writing this task, directly and indirectly. Last but not least, many thanks go to all team members,
whose have been invested in managing the team to achieve the goal. We must also appreciate
the feedback provided in our project report by our classmates, it has strengthened our skills
thanks to their comments and advices.

Many people, particularly our classmates and team members themselves, have made
valuable suggestions for this proposal which encouraged us to improve our assignment. We
thank all the people directly and indirectly for their support in achieving it. We wish to express
our sincere gratitude to all those who have provided us with the opportunity to complete this
study.

I
 LIST OF CONTRIBUTION
CASE STUDY MATERIAL
Searching Company Muhammad Syahsaifullah Bin Osman
Muhamad Amni Rabani Bin Elias
Muhammad Shatir Bin Rooslee
Muhammad Hariz Bin Mior Muzamin
Mhd Badhrul Bin Bahar

Contact Company Muhamad Amni Rabani Bin Elias

Preparing Question Muhamad Amni Rabani Bin Elias

Interview Company Muhamad Amni Rabani Bin Elias

CASE STUDY REPORT

List of Figure and Table Content Mhd Badhrul Bin Bahar

Acknowledgement Muhamad Amni Rabani Bin Elias

Executive Summary Muhamad Amni Rabani Bin Elias

Muhammad Syahsaifullah Bin Osman

Introduction Muhammad Hariz Bin Mior Muzamin

Company Information Muhammad Shatir Bin Rooslee

II
Company Analysis

SWOT Analysis Mhd Badhrul Bin Bahar

Muhammad Shatir Bin Rooslee

Business Model Canvas Muhammad Hariz Bin Mior Muzamin

Findings And Discussion Muhamad Amni Rabani Bin Elias

Conclusion Muhammad Syahsaifullah Bin Osman

Recommendation And Improvement Muhammad Syahsaifullah Bin Osman

References Muhammad Syahsaifullah Bin Osman

Muhamad Amni Rabani Bin Elias
Muhammad Shatir Bin Rooslee
Muhammad Hariz Bin Mior Muzamin
Mhd Badhrul Bin Bahar

Compiling Report Mhd Badhrul Bin Bahar

III
TABLE OF CONTENT
PAGE
ACKNOWLEDMENT I
LIST OF CONTRIBUTION II - III
TABLE ON CONTENT IV
LIST OF FIGURES V
LIST OF TABLES VI
EXECUTIVE SUMMARY VII

PAGE
1.0 INTRODUCTION
1.1 Background of the study
1-3
1.2 Problem Statement
1.3 Purpose of the Study
2.0 COMPANY INFORMATION
2.1 Company Background
4-9
2.2 Organizational Structure
2.3 Products and Services
2.4 Business, Technology, Marketing and Operational Study
3.0 COMPANY ANALYSIS
3.1 SWOT Analysis
3.1.1 Internal Factors
a) Strengths 10-15
b) Weaknesses
3.1.2 External Factors
a) Opportunities
b) Threats
3.2 Business Model Canvas (BMC)
4.0 FINDINGS AND DISCUSSION 16 - 20
5.0 RECOMMENDATION 21
6.0 CONCLUSION 22
7.0 REFERENCES 23
8.0 APPENDICES 24 - 36

IV
LIST OF FIGURES
PAGE
FIGURE 1 Poly-Xtract Sdn Bhd Logo 4
FIGURE 2 Organizational Chart of Poly-Xtract Sdn Bhd 5
FIGURE 3 Samples of local Malaysian herbal:
(a) Ficus doltoidea commonly known as mistletoe fig (Mas Cotek in
Malaysia)
6
(b) Andrographis paniculata locally known as Hempedu Bumi in
Malaysia

FIGURE 4 Services involved in Poly-Xtract Sdn Bhd 7

FIGURE 5 Products that has been extracted from raw material or herbal 7
FIGURE 6 Market Value of Herbal Preparation 8
FIGURE 7 Poly-Xtract Sdn Bhd’s social media on Facebook. 9
FIGURE 8 Poly-Xtract company joining the 13th Medicinal and Aromatic 17
Plants seminar(MAPS)
FIGURE 9 More example Malaysian herbal raw materials 24
FIGURE 10 Equipment use in Poly-Xtract company to extract the herbals;
(a) Evaporator machine to dry the herbal’s raw materials 25
(b) Standardized extractor machine where usually the end products
produce here before packaging

FIGURE 11 Poly-Xtract’s worker do a quality check of the products 26

FIGURE 12 Packaging of the company’s end products 27
FIGURE 13 List of question in the form questionnaire. 28 - 36

V
LIST OF TABLES
PAGE
TABLE 1 SWOT Analysis for Poly-Xtract Company 10
TABLE 2 Business Model Canvas (BMC) 15

VI
 EXECUTIVE SUMMARY

This case study project is one of the compulsory course assignments for Technology
Entrepreneurship (ENT600). The goal of this study is to encourage the student to learn on
how to manage and operate a business specifically for local SMEs Company. The company
chosen for this case study is Poly-Xtract Sdn. Bhd.

Poly-Xtract Sdn. Bhd. located at Taman Industri Spring Crest Batu Caves, Selangor, is one
of a biotechnology-based company in Malaysia that produce and commercialise aqueous
based extract and active fraction from selected local herbal species. They target to achieve
0.005% from the local herbal industry market value that currently estimated value about
RM 10 billion with their current capacity and technologies. Hence, a brief summary of the
company's knowledge and product is represented based on the interview with the
company's general manager, Ms. Siti Fatimah binti Elias. The interview was conducted
virtually thru WhatsApp and Google Form because of the Pandemic Corona Disease
(COVID-19) exists around the world and Malaysia has a Malaysian Movement Control
Order, which allows the company physically inaccessible for a visit and face-to-face
interview to collect details about the company by hand.

In this case study, we use SWOT analysis to evaluate the potential and limitation that exist
from outside and inside of the company. According to this analysis, we suggested several
solutions that can overcome the problem and thus fulfill their demands. This report also
briefly describes the details about the business marketing and organizational strategy of the
company.

VII
1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

This study is conducted as an assessment for subject Technology Entrepreneurship

(ENT600). In this course, we learn on how to apply technology in a business as an
entrepreneur as well as learn the proper way of handling a business. In order to do that, we
have to analyse how a business is run and how they manage to sustain in the market in a
long run and also to recognize the problem faced by the company and come out with ways
to solve the problem.

Thus, a case study of a selected company must be done to serve for that purpose.
Since the time we conducted the study, the country was encountered with the COVID-19
issues and our movement is restricted, we cannot conduct the interview face-to-face.
Instead, we contacted the company via WhatsApp and send a set of questions thru Google
Form as a medium to interview the company. From the interview, we can recognize the
strengths, weaknesses, opportunities, and threats related to their business. With that, we
should have a greater understanding of the essence of the business and why the company
is successful and able to satisfy market demand. We also can relate to the initiative took by
the company to overcome the problems that they faced and how it helps to sustain the
company.

After taking a few consideration, Poly-Xtract Sdn Bhd was chosen as our case study.
Poly-Xtract Sdn Bhd is a biotechnology-based company established on 26th December
2008 under the FRIM-MTDC Graduate Bio-Entrepreneur Development Programme
(FMBioSis™) aiming to produce and commercialize aqueous based extract and active
fraction from selected local herbal species. This processing technology was licensed by
Forest Research Institute Malaysia (FRIM). Extract and fraction produced are of high
quality that fulfil the international requirement such as quality, safety and efficacy
standards.
On 28th March 2020, we gathered all the information required about the company
from the company’s general manager, Ms. Siti Fatimah binti Elias from the Google Form.
Using the SWOT analysis, we can analyse the strengths, weaknesses, opportunities and
threats of the company. Afterwards, we can make an improvement and recommendation

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based on the findings as well as discuss the solutions to each of the problems faced by the
company.

1.2 PROBLEM STATEMENT

Based on the Google Form received from Poly-Xtract manager, we can identify a few
problems from the company:

1) Need to use many different equipment and processes.

Process of different herbs and its parts required different process and parameters.
Depending on the customer’s demand, the production cannot be run all at once if
the requirement need includes different types of herbs. It needs to process separately
which will cost more manpower and consume more time.

2) Low market demand

It is assumed that the demand for the product is low because of lack of marketing
strategies and acknowledgement to the target customers. Since the production of
herbal product in Malaysia has increased over the years, the demand for the herbal
extraction should be increase as well.

3) Expensive Insurances
Smaller businesses are charged more because they do not have many employees.
Unlike large businesses, the more employees, the more money they are paying the
insurance company to manage each employee’s account.

4) Low production rate

As the market demand increasing over the years, the production rate of the company
still at the same rate. This will limit the profit gain through time because the
production is not speed up without reducing the quality of the products.

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1.3 PURPOSE OF THE STUDY

These are the purpose of study:

1) To learn about the company information such as background, organizational

structure, services and products, marketing and operational strategies.
2) To learn about their strengths and weaknesses in order to improve their business.
3) To make a SWOT analysis based on the gathered information about the company.
4) To discuss about the finding made based on the analysis.
5) To suggest the solutions to the problems and recommend improvements that can
be made and creating some innovation to the company.

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2.0 COMPANY INFORMATION

2.1 COMPANY BACKGROUND

FIGURE1 : Poly-Xtract Sdn Bhd. Logo

POLY-XTRACT SDN BHD is a biotechnology-based company produce and

commercialise aqueous based extract and active fraction from selected local herbal species.
This company was established on 24th December 2008 under the FRIM-MTDC graduate Bio-
Entrepreneur Development Programme (FMBioSisTM). The processing technology was
licensed by Forest Research Institute Malaysia (FRIM). Extract and Fraction produced are of
high quality that fulfil the international requirement such as quality, safety and efficiency
standards.

This company is located at Taman Industri Spring Crest Batu Caves, 68100 Batu Caves,
Selangor Darul Ehsan. It provided herbal extract and extraction service to various industry
especially to herbal industry. The system used by this company is business to business for
manufacturing product and providing service to customers.

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2.2 ORGANIZATIONAL STRUCTURE

Figure 1 shows the Organizational Chart of Poly-Xtract Sdn. Bhd.

POLY-XTRACT SDN BHD

GENERAL MANAGER

TECHNOLOGY ADVISOR

PRODUCTION OFFICER QUALITY OFFICER

PRODUCTION WORKER

FIGURE 2: Organizational Chart of Poly-Xtract Sdn Bhd.

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2.3 PRODUCTS AND SERVICES

In Poly-Xtract Sdn Bhd, herbal extract and extraction services to various industry such
as herbal industry which is small size of company and medium enterprise company. The
products depend on client’s demand and target size to be process. Usually the client’s target
size is between 50kg to 100kg to be process and in order to fulfil the client’s need, this company
will increase and add value to product or raw herbal. Moreover, the cost for customers to get
the product or service will be RM2,500 to extract 50kg raw material subjected to process
required. Some of the raw material or herbal need to be extract are shows in figure 2.

(a) (b)

FIGURE 3: (a) Ficus doltoidea commonly known as mistletoe fig (Mas Cotek in Malaysia)
(b) Andrographis paniculata locally known as Hempedu Bumi in Malaysia.

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 Furthermore, Poly-Xtract Sdn Bhd is involved in manufacturing and processing high
quality extract from selected herbal species. Their Good Manufacturing performance (GMP)
extraction facility is capable of processing aqueous and solvent extract. They also provide R&D
and consultation. Figure 3 shows the services involved in Poly-Xtract Sdn Bhd.

FIGURE 4: Services involved in Poly-Xtract Sdn Bhd

For the products, all the herbal extract will go through stringent guidelines which
address the quality issues, safety element and efficaciousness of the product. Figure 4 shows
the example of the product produced by Poly-Xtract Sdn Bhd.

FIGURE 5: Products that has been extracted from raw material or herbal.

To conclude, POLY-XTRACT SDN BHD’s products are aqueous based herbal extract
and active herbal extract fraction. Meanwhile, the service that Poly-Xtract offer are extraction,
extract fraction and freeze drying.

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2.4 BUSSINESS, TECHNOLOGY, MARKETING AND OPERATIONAL

In Poly-Xtract Sdn Bhd, the technology used called Standardised Extract which is an
herbal extract that has been processed so that it contains a specified amount of certain
compound, usually the one thought to be the active compound. Standardised extract normally
will be represented with list of CoA (certificate of analysis) which encompassing the element
of quality, safety and efficacy factors with the intent to inform consumers that the product
contains the list amount of active component.

Extract Fraction Value Added

Standardised Extract

Freeze/Spray Dried Extracts

Dried Powder

Non-Standardised Extract

Fresh Materials (fruits, leaves, roots)

FIGURE 6: Market Value of Herbal Preparation.

Figure 6 shows the step or process technology used by Poly-Xtract Sdn Bhd to produce
a good product and service for customers. The process started form the fresh material such as
fruits, leaves and roots will go through non-standardised extraction process and become dried
powder. Next, dried powder will be extract by using freeze or spray drier before going into
standardised extraction process. Lastly, extract fraction will be the final process flow to
produce the herbal and every process have different technology used.

8
 Poly-Xtract Sdn Bhd provide services and promote their manufacturing and processing
high quality extract from herbal species in social media such as Facebook and customer can
reach this company by contact details such as email or phone number. Nowadays, social media
is one of the best ways on marketing strategy in order to market product in Malaysia.

FIGURE 7: Poly-Xtract Sdn Bhd’s social media on Facebook.

For the market strategy, Poly-Xtract Sdn Bhd always keep on updating the process
toward customer before the product is completely prepared. For delivery process in Selangor
and Kuala Lumpur, the company will deliver the product to customer and post the product via
courier if the customers cannot afford to collect the product. Usually customer will self collect
the finish product after they have informed by the company.

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3.0 COMPANY ANALYSIS.

3.1 SWOT ANALYSIS

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is an
important tool or technique for the company to find out what is important what is not work
well in their business. One of the important aspects for the analysis used by most of the
company is to reduce the chance of failure or to reduce the uncertainty in their business and if
taken carefully to the extent of eliminating the hazard that can brings bad reputation to the
company. According to(Helms & Nixon, 2010), SWOT has been used by countless
practitioners, marketing researchers, and is a frequent and popular tool for business marketing
and strategy students. Its simplicity and catchy acronym perpetuate its usage in business and
beyond as the tool is used to assess alternatives and complex decision situations.

As for Poly-Xtract company, the analysis can be shown by the table below;

STRENGTHS WEAKNESSES

 High quality and efficaciousness  Production rate depends on the

products client’s needs
 Strong employee attitude  Low level of marketing strategy
 High integrity organization
 Good working environment

OPPORTUNITIES THREATS

 Online Business Opportunities  Increased competition with other

 Growing Market Demand company does the same kind of
 Strategic Place business.
 Act of God
 Political issue

Table 1 SWOT analysis for Poly-Xtract company

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 In the Poly-Xtract company, we divide the SWOT analysis into two main group which
is the external factor outside the company and internal factor within the company. This is also
supported by the (Helms & Nixon, 2010) that stated, in the business arena the grouping of
internal and external issues is a frequent starting point for strategic planning. It can be
constructed quickly and can benefit from multiple viewpoints as a brainstorming
exercise. Hence, from the previous statement, The Strengths and Weaknesses for the Poly-
Xtract company falls into the internal factor while Opportunities and Threats falls into the
external factors.

3.1.1 INTERNAL FACTOR

A) STRENGHTS

First of all, one of the strengths that was found is the quality of the products from the
Poly-Xtract company. Since the process line to produce the product is from the technique called
Standardized Extraction, the technique for the herbal extract that has been processed so that it
contains a desired active compound. According to (Zhang et al., 2018), the extraction technique
is a way to separate a desired substance when it is mixed with others. Poly-Xtract Company
used the standardized technique usually followed with certificate of analysis (COA) which
encompassing the desired element quality with high pureness.

The second strengths of the company is the strong employee attitude, since the Poly-
Xtract is a small company, the employee also been chosen with a good attitude towards their
works. The organization choose the employee that has the skills or has been trained accordingly
with the extraction technique to ensure the product delivered to the clients meet the expectation.
From the interview that our groups been doing to the CEO of the company, the due date for the
product delivery also has been not a problem so far, this is proved that most of the employee
doing their job with a good attitude.

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 Moreover, having a sense of integrity in the way company run a business has
numerous advantages. Not only do you avoid the potential legal and ethical pitfalls associated
with running a business dishonestly, you also have the opportunity to set the standard for
excellence in your industry. In this sense, you have the opportunity to earn the long-term
respect of the clients, company and the partner. As from the perspective of the business run
by the Poly-Xtract, there has not been any misconduct of the works reported by the company
since all the members in the the organization have a high integrity attitude.

Poly-Xtract company also has a product delivery services, usually some clients will
self-collect the end product at the company’s factory. However, the company also do the
delivery service or using the courier if the clients cannot collect the product.

B) WEAKNESSES

Weaknesses in the SWOT analysis are the characteristics of a business that gives
disadvantages to the company, its means that these factors can prevent the company from
achieving the goals and objectives. As stated by(Piji, 2017) by his journal the theoretical
review of the Swot analysis, Weaknesses means that the factor of internal characteristics of the
company that place disadvantages relatives to the others that are harmful to achieve the
company objectives.

One of the weaknesses of the Poly-Xtract company is the production rate is too
dependent on the client needs compare to the other big company or other big industry which
their production rate usually in terms of large quantities. Poly-Xtract produced the product only
if the clients or retailers have ordered first that sometimes the client order is too low. On the
other hand, the problems also come if the demands from the clients is too high which cannot
be satisfied by the company.

Another Weaknesses is from marketing strategy of the company, it can be said that the
Poly-Xtract company did not fully utilise the big potential of the marketing strategy given the
situation of the business today highly influence by the digital revolution. The lack of funding
and experiences on the digital marketing strategy prevents the goals and objectives of the
company to be achieved even though the company business has been running for more than 10
years but the company’s brands still not reached and exposed by some potential clients or
retailers.

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3.1.2 EXTERNAL FACTOR

A) OPPORTUNITIES

Stated also by (Piji, 2017), the Strengths and Opportunities in the swot analysis have
the similarities in terms of both are favourable to the company. He also stated that Opportunities
is the external element outside your company’s boundary that can give benefits to the company.

For Poly-Xtract, one of the opportunities is the online business opportunity. Since the
world today have been shifting to the internet revolution, the rapid growth of the internet
brought the online business opportunities. For example, the customer who once travel to store
to buy products or things now can complete the transaction from their home. The Poly-Xtract
company can working more on the online business such as digital marketing strategy to
promote the business to the target audiences.

The other opportunity is the growing market demand of the healthcare industry.
Theoretically demands for the healthcare rises as the population become bigger, older and
sicker. Frankly demand for healthcare is bottomless. In Malaysia, current local herbal industry
estimated at RM10 billion and increasing by year. Poly-Xtract company may be able to take
advantages of this highly demanding consumer by being one of the main supplier in the
country.

Moreover, Malaysia also is known as the megadiverse countries which is a group of

countries that harbour the majority of the earth’s herbal species. There are only 17 countries in
the world that claims to be the world’s biodiversity. According to the Ministry of the Natural
Resources and Environment, the estimated local herbal market may expand by 15% a year from
RM7 billion in 2010 to around RM29 billion by year 2020(Farizah et al., 2015).

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B) THREATS

Threats are anything that could damaging the company’s goals and objectives. Threats
and Weaknesses have the same similarities which are harmful to the organization, however
Threats is the external factor outside the boundary of the company(Piji, 2017).

One of the Threats that comes to the Poly-Xtract company is the increasing competition
by the other company running the same healthcare business. In Malaysia there are some of the
leading company to supply the demands for this industry. ERA Herbal Products Sdn.Bhd, and
Herbeco (Malaysia Herbal Products Manufacturer and Supplier) are one of the healthcare base
business that have a big and large brand in Malaysia. Due to the competition, Poly-Xtract
company have the problems to expose their brand and products to the targeted audiences.

Act of god also one of the external threats that cannot be prevent by the company, as
from the current issue, the outbreak pandemic of Covid19 which originated in Wuhan, China
has been left the business around the world counting the lost. In Malaysia, due the 2020
Malaysia Movement Control Order (MCO) brings bad impact to all the business in the
Malaysia including the Poly-Xtract company. This is due to the restriction order from the
government to close some of the selected premises for social distancing in the workplace that
affected the production rate of Poly-Xtract company because all the employees needs to stay
at home and leave the work temporarily.

Last but not least, political issues also been one of the external Threats that are harmful
to the company. Due to the unstable political issues in Malaysia, a changing government also
brings bad impact to Poly-Xtract. Some contract with one of the partnerships for the research
and development with the Forest Research Institute Malaysia (FRIM) have been delayed which
affected the production rate of the company.

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3.2 Business Model Canvas (BMC) Poly-Xtract Sdn Bhd Muhammad Hariz 31/3/2020 V 1.0

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

 Investor  Research and  Added value on  Personal assistance  Industry in different

 Herbal industry Development herbal products  Expertise vertical markets
 Several vertical  Chemical  Extracted active  Trust  Industrial
market (perfume,  Develop compound  Reputation  Packaging
pharmaceutical, manufacturing  Standardized  Brand Awareness  Consumer care
foods etc) capability extracted  Retrofit
 Supplier  Supply chain compound
management
 Dyring
 Processing
 Quality Control

Key Resources Channels

 Interlectual property  Social media

 Facilities (Facebook)
 Highly qualify staff  Email
 Website

Cost Structure Revenue Streams

 Raw materials  Sale of products

 Research and Development  Business services
 Staff compensation
 Marketing
 Facilities and technology
 Taxes

Table 2 Business Model Canvas (BMC) for Poly-Xtract Company

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4.0 FINDINGS AND DISCUSSION

Poly-Xtract Sdn. Bhd. is an enterprise that has many good elements such as their value
proposition and marketing. However, this company have a lot of potential to be improved. The
company is still ne compared to its competitor and mainly focused on herbs only, which make
the company have some disadvantages than their competitors. There was no reconsideration of
its development strategy since it’s still a new company, there is no financial allocation in this
matter. Current local herbal industry market value is estimated to be at RM 10 billion. They
are targeting 0.005% of the market with their current capacity and technologies. To achieve
their target with a lot of restriction that they have, they may need to be more creative and have
a lot of ideas for the production and innovation. Innovations does not only mean a completely
new goods or services but also the expansion, replication and adaptation of a product depending
on the demand of the consumer (Fundamentals of Technology Entrepreneurship, 2017).

Poly-Xtract Sdn. Bhd. providing their client an herbal extract and extraction services to
various industry by increasing and add value to the product or raw herbal material. They
convincing their client to use their services by using their product recovery rate which is more
than their competitors. They mainly focus on Business-to-Business (B2B) systems. Business-
to-business (B2B), is a trade or partnership between one company and another such as retailer
and a wholesaler. B2B transactions appear to take place in the supply chain, where one
company buys raw materials from another company to be used in the production process
(Investopedia, 2020). The client’s company size that usually doing business with them is the
small and medium size company that involved in an Herbal Industry. The average client’s
target size of raw material to be processed are usually in range of 50 – 100 kg.

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 While Poly-Xtract Sdn. Bhd. has been trying to grow their company for the last twelve
years, it still has trouble to reach their target. The lack of marketing experience and the inability
to leverage the internet market's full potential contribute to restricted exposure for consumers
even for the locals. As a result, the company is unknown by many potential clients and
partnership. This modern marketing technique is called e-business, and is one of the most
important platforms in our days to create partnership and to find any potential clients. In
addition, e-commerce, which is part of the e-business, focuses on shares in online purchasing
and selling (Fundamentals of Technology Entrepreneurship, 2017).

Most of the time they promote their product and services by using website and
exhibition such as Malaysia Agriculture, Horticulture & Agritourism (MAHA), Medicinal and
Aromatic Plants Seminar (MAPS) and many others.

FIGURE 8 Poly-Xtract company joining the 13th Medicinal and Aromatic Plants seminar
(MAPS)

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 Other than that, their customer contacts them thru phone, email or Facebook and
becomes part of their sales cycle. As of for the delivery of product or services, usually the
clients will self-collect the product desired. If the client cannot collect the product, their
company will do delivery or post the product via courier if within Selangor & KL. The
company keep on growing by doing the research and development and keep their customer by
giving them consultation session. They hoping to build a close and continuous relationship
where customers will continue to get services and R&D from their company for current and
future product from the client. They always updating on the process to keep in touch and
interact with the client.

Their extraction only focused on herbal plant and their business is mainly value-driven,
which they focused on the quality value of product created. This possibly limiting the market
development approaches to growth in the buying field to reach a broader variety of customers
other than herbal plant. Potential clients can come from vary type of industry, and from
different demographic or psychological segments. Companies using these strategies need to
come out of their current business comfort and build the basics for potential consumers, which
can contribute to greater freedom (Fundamentals of Technology Entrepreneurship, 2017).

They are targeting to hit RM 300,000 revenue turnover after 5 – 10 years of running
the company depending on the current technology that they have. Most of the time the contract
with their client in a range of 1 year or more to get their services for a certain amount of raw
material and product monthly and the payment are thru checks which gave 50% deposit before
the process started and 50% upon receiving the desired product. The average price to extract
50 kg of the raw material is around RM 2,500 subjected to the process required.

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 Based on our findings and discussion, we conclude that this business may face some
potential problems regarding the competitiveness and its way to keep their client in the future.
In their customer services system, they can make some improvements and keep improving their
technology. There are a lot of concerns about the production capacity, based on the client
reviews according to the company. A less quality product with a bigger capacity of production
is much more desirable. They will need to come up with fresh ideas so they can do well in the
extraction industry with a strategy to develop a technology that can increase the machine
capacity to process more product and to process more varieties of herbs without degrading their
vision to give their customer a high quality product. They can, for example, scale up the
technology that they have been using to get more production capacity and invest more in the
research and development. However, as we all know it will consume a big amount of finance
to do it. To grow up their business mean they need to start partner up with a lot more companies
and a bigger company size which results in more production capacity needed. Other than that,
customer service play an important role to grow a company. Our suggestion is to add a section
in the website for feedback from the client concerns and suggestions about the company to
consider. Having good and excellent customer service will surpass poor marketing, but
replacing poor customer service with even the most outstanding delightful marketing is
extremely difficult and costly. Bad customer service can cause customer dissatisfaction and
harm the credibility of the company, and eventually affect the business of the company.

Poly-Xtract Sdn. Bhd. have a close partnership with Malaysian Technology

Development Corporation (MTDC) and Forest Research Institute Malaysia (FRIM). The
partnership is built mainly for finance and technology resources for their company. They are
searching for more strategic relationship with any company that can built them a processing
and supplying chain. Different herbs requiring different processes because of different of
parameter needed and the client need to be educated more on the technology and herbal
industry. Most of the industry now days is depending on chemicals which might be dangerous
for the consumer to consume and can harm the environment.

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 There are some limitations we faced when carrying out this report. First, there is a
Corona diseases (COVID-19) pandemic is going on all over world and Malaysia is having
Malaysia Movement Control Order, which make the company is physically unreachable for a
visit and face to face interview to obtain information about the company by hand. Second, there
are only one website which cover the company and its information. Therefore, there was little
details we can search about the company. Finally, the time given for this study to be completed
is limited to do a research any further.

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5.0 RECOMMENDATIONS

Depend on the study, we highly recommended several actions that can be taken in order to
boost the company production capacity and sustain the Poly-Xtract Sdn. Bhd. in the small and
medium entrepreneur (SME) industry.

Target audiences – Versatile their product type. By doing so, it will increase the rate of
production. We believe that if they innovate the product, such as create the product into a solid
form, is another alternative way to increase their products demand.

Marketing system – Commercialize their products and services through multimedia and
upgrading their services to e-business. Based on finding, generally Poly-Xtract Sdn. Bhd.
promote their product and services through website and exhibition. Therefore, to enhance
their merchandise, they need to actively promote their services through multimedia such as
Instagram, Twitter or others similar platform. This will result in widely company recognition.

Customer satisfaction – Many of us know that customer centricity is essential today.

Customer play an important role in all type of business. We recommend that Poly-Xtract
company to always up to date with customer and improving their customer service system such
as measure and analyse customer feedback. Through this feedback, the company can improve
product strategy, optimize user experience and deliver exactly what the market demands
nowadays.

Production capacity – Elevating the product capacity without downgrading the product’s
quality is an idea to minimize the problem that rise in the SWOT analysis study. Besides that,
they also can modernize their technology in order to meet the market demand and increase the
machine capacity to process more product.

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6.0 CONCLUSION

From the SWOT analysis, we conclude that Poly-Xtract Sdn. Bhd. have a lot of
potential to become a significant company in Malaysia for extracting herbal and providing
excellent extraction services. The combination of strength and opportunities properties shown
a positive prospect for the future development of the company. Considering to high integrity
of organization and employee ethic, this company can build a strong and continuous
relationship with their customer and clients. Through findings in this study, we believe that in
future Poly-Xtract Sdn. Bhd. will be top tier in the healthcare industry as if they improve their
marketing system and upgrading their customer services system. Furthermore, we also
recommend several measures in order to minimize the issues.

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7.0 REFERENCES

Farizah, A., Azlan Shah Zaidi, M., Noorasiah, S., Adibah Abdul Majid, F., Ahmad, F., Azlan
Shah Zaidi, M., Sulaiman, N., & Adibah Abdul Majid ABSTRAK, F. (2015). Issues and
Challenges in the Development of the Herbal Industry in Malaysia. Prosiding Perkem,
10(September), 227–238.
http://www.strategyr.com/MarketResearch/Infograhics_Images/MCP-1081/1081.jpg

Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis – where are we now?: A review
of academic research from the last decade. In Journal of Strategy and Management (Vol.
3, Issue 3). https://doi.org/10.1108/17554251011064837

Piji, A. (2017). Опыт аудита обеспечения качества и безопасности медицинской

деятельности в медицинской организации по разделу «Эпидемиологическая
безопасностьNo Title. Вестник Росздравнадзора, 4(1), 9–15.

Zhang, Q. W., Lin, L. G., & Ye, W. C. (2018). Techniques for extraction and isolation of
natural products: A comprehensive review. In Chinese Medicine (United Kingdom).
https://doi.org/10.1186/s13020-018-0177-x

Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim (2017)"Fundamentals of

TechnologyEntrpreneurship", Global Mediastreet Sdn. Bhd.

Chen, J., Investopedia (2020, March 5). Business to Business (B2B). Retrieved on 2020, March
28 from https://www.investopedia.com/terms/b/btob.asp

Poly-xtract Sdn Bhd’s Facebook. Retrieved on 2020 March 28 from

https://web.facebook.com/Poly-Xtract-Sdn-Bhd-438358899573994/about/

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8.0 APPENDICES

Figure 9 More example Malaysian herbal raw materials

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 (a)

(b)

Figure 10 Equipment use in Poly-Xtract Company to extract the herbals:

(a) Evaporator machine to dry the herbal’s raw materials

(b) Standardized extractor machine where usually the end products produce here
before packaging

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Figure 11 Poly-Xtract’s worker do a quality check of the products

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Figure 12 Packaging of the company’s end products in exhibition

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Figure 13 List of question in the form of questionnaire

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Figure 13 List of question in the form questionnaire

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Figure 13 List of question in the form questionnaire

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Figure 13 List of question in the form questionnaire

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Figure 13 List of question in the form questionnaire

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Figure 13 List of question in the form questionnaire

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Figure 13 List of question in the form questionnaire

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Figure 13 List of question in the form questionnaire

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Figure 13 List of question in the form questionnaire

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