KOOLKES SENDIRIAN BERHAD: How Cool Can The Fridge

Asian Journal of Case Research (AJCR)it be that the new loan application for KoolKes is rejected?Where can KoolKes turn to if the banks can no longer give theirsupport?These questions kept reeling at the back of Mr. P. K. Gong’s mind. He had tomake a strategic proposal and come up with some specific recommendations forthe next board meeting within a week’s time.BACKGROUND OF THE COMPANYKoolKes Sdn. Bhd. was established in February 2000 with an authorized capitalof RM500,000 and a paid-up capital of RM300,000. Its shareholders were Mr.P. K. Gong and Mr. S. P. Han, who were respectively the company’s ManagingDirector and Technical Director. Mr. P. K. Gong also became the company’sacting Sales and Marketing Manager. They both previously served withElectrolux Commercial Products Sdn. Bhd. for 10 years. Mr. P. K. Gong beganas a Sales Executive, got promoted as a Sales Manager, then as Product Managerand later became a Divisional Manager there. Mr. P. K. Gong handled projectsfor major supermarkets and specialty stores (e.g. Parkson, Kerry, Jusco andAyam Dindings) during his tenure with Electrolux. In contrast, Mr. S. P. Hanstarted as a senior Services Technician and later became a Service Manager cumRefrigeration Specialist for the company. He was also involved with projects formajor supermarket like Isetan, Sogo, Parkson, Giant, Ocean and others. Whileworking for Electrolux, they shared a dream to set up their own company and tobe the leader in the market for supermarket equipments supplies.Koolkes’s sales office was located in Ampang, Kuala Lumpur. KoolKeshad a factory lot approximately 8,000 square feet in Sungai Buloh industrialarea. It was used to store goods in transit to customers but most of the time therefrigerated showcases were delivered to the site directly. The principal activityof KoolKes was store designing, supplying and installing imported commercialrefrigerated showcases in food retail outlets such as hypermarkets, supermarkets,mini markets, convenience stores and specialty stores. KoolKes also providedafter - sales support, training and maintenance services and consultancy.“Our mission is to be the superior equipment supplier forthe food retail stores in Malaysia. To achieve this, we haveto be professional and equipped with comprehensive technicalknowledge and skill. We must offer a good range of qualityproducts and have both efficient and reliable back - up services,”said Mr. P. K. Gong to his employees in a company meeting inthe first year of KoolKes’s establishment.146