KOOLKES SENDIRIAN BERHAD: How Cool Can The Fridge

Asian Journal of Case Research (AJCR)KoolKes to sell!” Mr. P. K. Gong grumbled to Mr. S. P. Hanupon checking the exchange rates with his banker.In July 2003, the exchange rates of Ringgit to U. S. dollar were 2.5, Ringgitto Sterling Pound 3.2 and Ringgit to Yen were 2.10 ( Per 100yen) but these hadincreased to 4.2, 6.8 and 3.0 respectively.The market prices for the various refrigerated display showcases importedinto the country are shown in table 1.Table 1 Market PriceType Size Price (RM)Multi deck Chiller/ FreezerDisplay Showcase8’12’Island Freezer Display Showcase 4’8’12’Service Counter Display Showcase 8’12’Self contained Chiller Case (with heated glass Doors)2’ (1 door)4’ (2 door)6’ (3 door)21, 000 – 23, 00026, 000 – 28, 00012, 000 – 16, 00018, 000 – 22, 00025, 000 – 28, 00018, 000 – 22, 00024, 000 – 26, 0004, 5006, 0007’ 000N.B.: The current market price of the cases in Table 1 had increased by approximately 60% of theprices listed above. This was because in addition to the currency depreciation of about 40%, there wasalso an increase in freight and insurance costs which were quoted in U.S. Dollar and thus increase theduties payable for imported goods.Installation per foot-run copper piping, insulation and wiring would costabout RM 220 per foot-run. Electrical control panels depending on the numberof showcases and refrigeration system (number of compressors) could cost fromRM 30, 000 to RM 120, 000.This would bring about less than RM 5, 000 for the sale of a simple equipmentfor small outlets to a few million ringgit for big projects involving hypermarketsor supermarkets.MANAGEMENT AND PERSONNELKoolKes’s organization started expanding since the company’s establishmentwhen it only comprised of four employees; a technician, an apprentice and twoclerks. By May 22 1998, the company had twelve employees. The organizationalstructure of the company is given below in Figure 1.154