Disclaimer: The case study is only intended to be used for NYIC and doesn't reflect actual objectives of Arba Travel. All rights reserved.
You are a team of analysts working in a renowned asset management firm in Malaysia. Recently, you received a new client company who is looking to invest its capital to open a new travel route to Russia. Introducing…
Background
Over the past few years, ARBA Travel has built a reputation as one of the fastest growing travel companies in Malaysia, bringing over 35,000 Malaysians to explore more than 40 countries worldwide. Founded by 3 passionate students who studied overseas, ARBA Travel began with a simple mission: to provide Malaysians with meaningful travel experiences. Through extensive research and development, ARBA Travel creates its own travel packages tailored to travelers' needs. Having lived abroad for years, the founders understand what truly matters to travelers. They understand that traveling isn’t just about visiting famous landmarks, but also immersing oneself in local culture, exploring authentic local delicacy, learning about its meaningful history, and having genuine interactions with local communities. As a result, ARBA Travel has been consistent in creating itineraries that avoid tourist traps and instead focus on delivering memorable experiences.
Recently, a new opportunity has emerged. Following announcements that Russia is moving towards visa-free arrangements for Malaysians, ARBA Travel believes Russia could become one of its new promising destinations. With its rich history, unique culture, iconic landmarks, and growing appeal among adventurous Malaysian travelers, Russia presents a potentially lucrative market for the company.
Two routes were proposed to management, the first one being “Winter aurora” which encompasses the Moscow-Saint Petersburg-Murmansk route. This route offers travellers a glimpse into Russia’s imperial past with landmarks such as Saint Basil’s Cathedral and Peterhof Palace. Up north, tourists can catch a glimpse of auroras close to the Arctic. The second route proposed is the “Trans-Siberian Express”, an enduring 9,289 km railway journey where travellers can immerse in its Soviet past along with exploring natural wonders along the way such as Lake Baikal.
However, entering the Russian tourism market will not be easy. Due to international sanctions, different financial systems, logistical complexities, and limited existing partnerships, ARBA Travel estimates that it will take approximately 5-10 years to fully establish and operate a sustainable Russian travel division. During this period, the company will need to invest heavily in preparation and market development.
Among the anticipated expenses are:
• Recruitment and training of specialized travel consultants and tour agents.
• Establishment of partnerships with hotels, transportation providers, and local tourism operators.
• Insurance, licensing and legal costs associated with operating tours in Russia.
• Development of payment and operational systems that can navigate cross-border financial restrictions.
Financial goals
To prepare for this expansion, ARBA Travel has allocated RM750,000 for an investment fund. The company aims to grow this capital to approximately RM1,500,000 at the end of 10 years. However, ARBA Travel plans to withdraw RM20,000 annually during the last five years to actively support expansion activities and operations related to the Russia project.
In addition to pursuing growth, ARBA Travel has specific investment preferences. The company requires that all investments remain Shariah-compliant and align with Environmental, Social, and Governance (ESG) considerations wherever possible. The management believes that financial success should be achieved responsibly while supporting ethical business practices and sustainable development.
The challenge that is presented to you is not simply maximizing returns, but how to design an investment plan that enables ARBA Travel to balance ethical considerations while achieving his financial goals.
Your task
As a fund manager, you will be given 8 weeks to create an investment portfolio that supports the company’s goals. Afterwards, you are required to pitch your final report outlining your investment strategy and proposal. What makes your investment portfolio stand out from others?
Disclaimer: The case study is only intended to be used for NYIC and doesn't reflect actual objectives of Celsius Coffee. All rights reserved.
You are a team of analysts working in a renowned asset management firm in Malaysia. Recently, you received a client who goes by the name of Encik Ammar, a coffee shop owner who is looking to invest its business savings to expand its outlets. Introducing…
Background
Ten years ago, Encik Ammar started selling bottled coffee from his home kitchen. At that time, he was just an avid coffee lover who likes to share his passion for coffee with friends and family. He loved collecting different coffee beans from around the world and experimenting with them in his kitchen. As his coffee became favorites among his guests and relatives, he realised there was an opportunity to turn his passion into a business. With his own limited savings, he personally handled everything from preparing drinks and managing social media to delivering orders around Klang Valley.
Initially, building the business was not easy. There were days when sales were slow, and every ringgit had to be spent carefully. However, Encik Ammar believed that customers would return if he focused on two things: serving quality coffee and treating customers well. Rather than chasing rapid growth, he focused on perfecting his recipes, sourcing quality ingredients, and creating a customer experience that felt warm and genuine.
As demand grew, Encik Ammar opened the first Celsius Coffee outlet. His vision was to create a café that fit naturally into the lifestyle of Malaysians, where people could either sit down and catch up with friends or quickly pick up a drink on their way to work. Alongside specialty coffee, Celsius Coffee introduced familiar local dishes such as Nasi Lemak which quickly became customer favorites.
Over the years, Celsius Coffee expanded steadily across the Klang Valley. What began as a small delivery business eventually grew into 5 outlets located in areas such as Putrajaya and Cyberjaya. The brand became especially popular among youths who were attracted by its affordable specialty coffee and comfortable café environment. Through community events and customer engagement, Celsius Coffee built a loyal following and established itself as a growing name in Malaysia's specialty coffee industry.
Today, Celsius Coffee stands at an important turning point. After the success of its existing outlets, Encik Ammar believes the company is ready for its most ambitious expansion yet: opening a flagship branch at Bukit Bintang, one of Kuala Lumpur's busiest commercial and tourism districts. The location would allow Celsius Coffee to reach a larger customer base, including international tourists, while strengthening its brand presence in the heart of the city.
Financial Goals
However, opening a cafe in Bukit Bintang comes with significant costs. Higher rental rates, renovation expenses, new equipment and staff recruitment will require substantial funding. While the company remains financially stable, Encik Ammar wants to ensure that the expansion is supported by careful long-term financial planning.
To prepare for this next stage of growth, Encik Ammar has set aside RM300,000 available for investment. Encik Ammar hopes to grow this amount to RM500,000 over the next 10 years, creating additional capital that can support the Bukit Bintang project and future expansion plans. At the same time, as a business that values ethical financial practices, Celsius Coffee wishes to ensure that all investments comply with Shariah principles.
As an investment management firm, your task is to develop an investment strategy that will help Celsius Coffee achieve its target within 10 years. Your recommendation should take into account the company's financial objective, time horizon, risk profile, and commitment to Shariah-compliant investing. The strategy you propose could play an important role in helping Encik Ammar bring Celsius Coffee to the next stage of its growth.
Your Task
As a fund manager, you will be given 8 weeks to create an investment portfolio that supports the company’s goals. Afterwards, you are required to pitch your final report outlining your investment strategy and proposal. What makes your investment portfolio stand out from others?