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LETTER OF SUBMISSION

1
LETTER OF SUBMISSION

Diploma in Applied Sciences (AS120)


Faculty of Applied Sciences
Universiti Teknologi MARA Perak
Tapah Campus
35400 Tapah Road
Perak

4th November 2019

Dr. Mohd Afandi bin Abu Bakar


Lecturer of Fundamentals of Entrepreneurship (ENT300)
Faculty of Business Management
Universiti Teknologi MARA Perak
32610 Seri Iskandar
Perak

Sir,

Submission of the Business Plan (ENT 300)

Attach is the business plan title “MICROBES ALLIANCES” to fulfill the requirements
as needed as university requirements.

Below is the list of the group members that involved in completing this business plan:

ARIFAH BINTI AHMAD DAMAHURI 2017692336


NUR SAKEENAH BT KHAIRUDIN 2017802694
NURUL HADIRAH BT MOHAMAD ASHRAF 2017287078
NUR SAFIAH ‘AQILAH BT MOHD JAMIL 2017265882
IZNI SHAFIQAH BT MOHD RAZI 2017425246

Thank you,

Yours sincerely

………………………
IZNI SHAFIQAH BINTI MOHD RAZI
General Manager

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ACKNOWLEDGEMENT

3
ACKNOWLEDGEMENT

Primarily we would thank God and all praises for Him, the Creator of all. After all
obstacles and hardship that we have been through, we finally completed our group
assignment. Hereby, without doubt we would like to say that, during the completion of this
course, plenty of knowledge and experiences have been obtained. Though, undeniably, it is
quite difficult for us to complete the task, it is worthy and we learn much.

The business plan have been prepared with the cooperation and support of many
people. We would like to thank to our entrepreneurship supervisor, Dr. Mohd Afandi Bin Abu
Bakar, for his guidance, support and advice. He also willingly shares his knowledge and
experience to ensure us finish this business plan in accordance to the requirements for the
completion of ENT300. Special thanks to our parents also, for giving us the financial support
and mental strength in completing this business plan. We are not able to complete all of
these things without this great people.

Recall to our memories while working on this report and in the process of completing
it, we succeed to build a strong bond of friendship among our team members. The strong
bond that has been created and cooperation that existed help us a lot in achieving our aims.
All the teammates play vital role that contribute to our success.

Lastly, we hope the knowledge that we have gathered from this course can help us to
manage our own business and guide us to be a successful entrepreneur in the future. We
would like to apologize for all the mistakes that happened with or without our concern. Once
for all, a great gratitude to Allah and others that have been helping us so much. Only Allah
can repay all of your good deeds. Thank you.

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TABLE OF CONTENTS

5
TABLE OF CONTENTS

LETTER OF SUBMISSION

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

TABLE OF CONTENTS

1 INTRODUCTION
1.1 Name of Business
1.2 Nature of Business
1.3 Industry Profile
1.4 Location of the Business
1.5 Date of Business Commencement
1.6 Factors in Selecting the Proposed Business
1.7 Future Prospects of the Business

2 PURPOSE
2.1
2.2

3 BUSINESS BACKGROUND
3.1
3.2
3.3

4 BACKGROUND OF PARTNERSHIPS
5 LOCATION OF BUSINESS
6 MARKETING PLAN
7 OPERATIONAL PLAN
8 ADMINSTRATION PLAN
9 FINANCIAL PLAN

APPENDICES

PARTNERSHIP AGREEMENT

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EXECUTIVE SUMMARY

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Executive summary

Microbes Alliances offers aqua ball, which is called as MADID balls that is wrapped
with eco-friendly packaging. The combination of ecofriendly substance and its packaging is
beneficial to the customers and not harming the environment as well. Our target customers
among farmers, animal breeders, agricultural business, households and government
agencies. Microbes Alliances Enterprise offers environmental-friendly products that are
made from great microbes without any harmful chemicals that would provide nutrition to the
aquatic animals and to improve the water quality by preventing formation of algae. Besides,
the packaging itself is great for the environment as we don’t use any plastic to package it.
We use water soluble wrapper to wrap the product. The water soluble wrapping is
biodegradable unlike plastic, also easy to bring and is long lasting consumption. Microbes
Alliances Enterprise is located at coastal town of Lumut in Manjung District, Perak.
Marketing strategy of Microbes Alliances Enterprise is to focus on the quality of our product
and provides necessary information to it. The management of Microbes Alliances Enterprise
consists of 5 lead workers which are Izni Shafiqah bt Mohd Razi, Arifah bt Ahmad Damahuri,
Nur Sakeenah bt Khairuddin, Nurul Hadirah bt Mohamad Ashraf and Nur Safiah ‘Aqilah bt
Mohd Jamil. This new product that we improvised which is an eco-ball with environmental
friendly packaging, which is water soluble wrapping that is attached with cardstock that
provides information for usage. By this, the product and the packaging itself won’t put be a
burden for the consumer to use it. With our intention and innovation, we hope to become a
part of people who making other people’s lives more better by using our product.

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INTRODUCTION

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1. Introduction

1.1. Name of the Business

Microbes Alliances Enterprise.

1.2. Nature of Business

It is a new business. Do an eco-friendly packaging bag for products that are save to
the environment and more attractive.
1.3. Industry Profile

Packaging of a product played an important role to attract customers to buy the


product. But the packaging also will be discard when the customer want to use the
product and this will lead to the environmental pollution. So, to overcome this
situation, our company created and produce an eco-friendly packaging that is more
creative that will attract more customer as well as can reduce the pollution from the
normal plastic packaging.
1.4. Location of the business

Pt 4127 Jalan Sultan Idris Shah,Lumut Waterfront,


32200 Lumut,
Negeri Perak

1.5. Date of business commencement (start)

01/01/2020

1.6. Factor in selecting the proposed business

i) Make improvement of the early plastic packaging bag into the modern and
practical one.
ii) All of us have the skills and ability to perform in business marketing and we
think that the eco-friendly and attractive packaging will attract a lot of people to
buy our product because people normally make a first impression based on the
visual first.
iii) Make the selection of labor. We want to hire 10 workers in our company. So,
our job management will be easier to implement.

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1.7. Future prospects of the business

i) We are expanding our product to the whole Malaysia and expect to bring the
product throughout the other country. So, we can gain our more profit and
improve our company.
ii) We will have our own regular customer. We have buyers of our product which
consist of housewife, farmer and animal breeder, agriculture and aquaculture
university or business. Our eco-friendly packaging will increase the production
when the demand is always higher and get a lot of customer’s request.
iii) Our company named which is “Microbes Alliances Enterprise” will be surely
known by every people in Malaysia. We are able to produce and make the
transformation of the normal plastic packaging. We also will improve our
product and add more brunch of our company not only in Malaysia but also in
Asia.

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PURPOSE

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2. Purpose of preparing the business plan

A business plan is a set of document prepared by the organization of the company that
show how we will operate our business. It provides a step-by-step guide as we start a new
business or grow our current company. It provides direction for every decision we make
going forward. It also can help us to maintain our company longer in nowadays marketing.

2.1. To evaluate the project viability and growth potential


Every person in the company will use the information contained in this business plan
whether to guide decision making with regard to on-going operations, to set
performance targets or to assess personnel performance in term of the ability to
meet objectives set forth in business plan. The company growth and performance
can be measured. It also can identify, describe and analysed a business opportunity
or a business already under way, examining its technical, economic and financial
feasibility.

2.2. To apply for loans or financing facilities from the relevant financial
institutions
Business plan show the strength and the stability of the company especially when
applying for loans and to convince the investor towards providing funds or other
financial institution. It also serves as our company’s resume, explaining our
objectives to investors, partners, employees and vendors. A good business plan
clearly states the amount of capital we need to make the company work and where
the investment is coming from. It clarifies the means by which we will pay back
borrowed money, our sales forecast, spending budget, cash flow and how we will
invest profits.

2.3. To act as a guideline for the management of the proposed business


This business plan can help us maintain a long-range view as we make daily
decisions. The plan makes it easier to follow each business development step in
order so we don’t miss any important elements along the way. A well-written plan
provides us with a starting point and outlines a timetable that drives our activities,
keeps us grounded, focuses on our target market, and strategically aligns with our
main business tactics as we track our progress.

2.4. To allocate business resources effectively


Business plan play key role in allocating resources throughout the business so that
the company can meet the organization’s objectives. The company can use the
business plan as a guideline to help the business management to stay focused on
business growth, organization’s objective and the business growth. When a company
are reviewing their business plan to go to the next stage, it is important to be clear on
how they will allocate their resource to make the strategy work. If a particular
department in a company has given a target, the business plan should allocate
enough resources to achieve it. These resources may already available or may
generate by the future activities which means the company should recruiting more
staff, buying more suppliers and equipment, and spending more on marketing. The
change in market could mean that there are increased opportunity in certain division.

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BUSINESS BACKGROUND

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3. Business Background

Table 3.1 Business Background

Name of the Business Microbes Alliances Enterprise


Location: Pt 4127 Jalan Sultan Idris
Business Address Shah,Lumut Waterfront, 32200 Lumut,
Negeri Perak

Website www.microbesalliances.com

E- mail microbesalliances20@gmail.com

Telephone Number 05-34567891

Fax Number 05-34567778

Form of Business Partnership


i. Create and produce an eco-friendly
packaging
ii. Create a creative and attractive
Main Activity
packaging that can
iii. Sell product that made from eco-
friendly materials such as microbes
Date of Commencement 01/01/2020

Date of Registration 01/10/2019

Registration Number 002143657-P

Name of Bank MAYBANK

Bank Account Number 0001 2345 6789

3.1 Vision and Mission

3.1.1 Vision

Our vision is to be one of the leading companies in producing more


environmentally packaging that can save the environment.
3.1.2 Mission

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Our mission is to ensure that we create an eco-friendly packaging by using an
environmentally friendly materials with a modern design and at affordable
prices for customers’ comfort.

3.2 Organizational Chart (GM + Head of Department)

3.3 Logo and Motto

3.3.1 Logo

Logo description

Shape/Color Description
: Represent of nature which show that our products are
Green
eco-friendly and save to the environment.
: Represent that every person in our company are
Green Round
together to improve the production of our eco-friendly
Circle
products.
: Represent microbes that we used to make the Madid
Green leaves
Ball,
: Is our company name. We used white colour to
Microbes Alliances represent that our company are very honest in our
business and 100% trustworthy.

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3.3.2 Motto

Lead the scene, keep it green.

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PARTNERSHIPS BACKGROUND

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4. Background of Partnership

4.1 General Manager

Table 4.1 Background of General Manager

Name of Partners : Izni Shafiqah Binti Mohd Razi

Identity Card Numbers : 990815-05-5594


: No.201, Jalan Senimas 10, Taman
Permanent Address Senimas, 72000 Kuala Pilah, Negeri
Sembilan
E- Mail : izniiishafiqah@gmail.com

Telephone Number/Fax Number : 013-9669143

Date of Birth : 15/08/1999

Marital Status : Single

i. Diploma in Business Studies


Academic Qualification ii. Bachelor of Business Management

i. Business management
Course Attended
ii. Leadership camp and Conference
Skills : Leadership and communication skills
i. Opened an online business that sell
various clothes and scarf
Experiences
ii. Worked as Business Analyst in
Neelofar Hijab

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4.2 Administration Manager

Table 4.2 Background of Administration Manager

Name of Partners : Nur Safiah Aqilah Binti Mohd Jamil

Identity Card Numbers : 991213-10-5800


: No.4, Jalan Subang Permai, U6/2B
Permanent Address
Desa Subang Permai 40150 Shah Alam
E- Mail : safiahaqilah3@gmail.com

Telephone Number/Fax Number : 019-3256474

Date of Birth : 13/12/1999

Marital Status : Single


i. Diploma in Business Management
Academic Qualification ii. Bachelor of Business Administration

i. Office Administration - Fundamentals


Course Attended of Governance

i. Communication and computer skills


Skills ii. Ability to use Microsoft Office
iii. Database management skills
: Worked as Administration Manager in
Experiences
Kayman Beauty

4.3 Marketing Manager


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Table 4.3 Background of Marketing Manager

Name of Partners : Arifah Binti Ahmad Damahuri

Identity Card Numbers : 990221-08-6270


: LOT DR 132, Taman Lerista, Bukit
Permanent Address
Chandan, 33000 Kuala Kangsar,Perak
E- Mail : arifahkakteh@gmail.com

Telephone Number/Fax Number : 013-4177157

Date of Birth : 21/02/1999

Marital Status : Single


i. Diploma in Computer Science
Academic Qualification ii. Bachelor of Marketing

i. Sales and Marketing classes


Course Attended
ii. Certificate Adobe Workshop
i. Creative in promoting products or
items digitally
Skills
ii. Excellent in using various Adobe
software
Experiences : Clerk at Malay Collage Kuala Kangsar

4.4 Operation Manager


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Table 4.4 Background of Operation Manager

Name of Partners : Nurul Hadirah Binti Mohamad Ashraf

Identity Card Numbers : 991121-14-5186


: No.104, Lorong Cakera Purnama,
Permanent Address
Seksyen 12, 42300 Bandar Puncak Alam
E- Mail : nhadirah@gmail.com

Telephone Number/Fax Number : 011-10615186

Date of Birth : 21/11/1999

Marital Status : Single


i. Diploma in Operation Management
Academic Qualification
ii. Bachelor of Operation Management
Course Attended : Integrated Safety Management
i. Good team management skills
Skills
ii. Strong motivational skills
: Worked as Business Development
Experiences
Manager in Siti Khadijah Apparel

4.5 Financial Manager

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Table 4.5 Background of Financial Manager

Name of Partners : Nur Sakeenah Binti Khairudin

Identity Card Numbers : 990524-14-5688


: no 2, Jalan Harmoni 10, Taman
Permanent Address
Harmoni, 43500 Kajang, Semenyih
E- Mail : keenaadean901@gmail.com

Telephone Number/Fax Number : 013-2380299

Date of Birth : 24/5/1999

Marital Status : Single


i. Diploma in Accountancy
Academic Qualification
ii. Bachelor of Accounting and Finance
Course Attended : Accountancy and Finance
i. High numeracy technical skills
Skills
ii. Accountancy skills
Experiences : Work as Accountant in Maybank Berhad

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LOCATION OF THE BUSINESS

5. Location of Business
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5.1. Physical location of the project

Figure 5.1 Location of building in Lumut according to Google Map

5.2. Building

Figure 5.2 Building in Lumut

 Location
 We decide to start our business in Lumut, Perak. Our business address is at
Pt 4127 Jalan Sultan Idris Shah,Lumut Waterfront, 32200 Lumut, Negeri
Perak. We choose this place as our business location because the source of
our materials can be easily obtained from nearby area.
 Our business location also near with our target market which are the
farmers, botanists, gardeners, and housewife.

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MARKETING PLAN

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6. Marketing Plan

6.1 Marketing Objectives

(i) New business.

- To promote our product as we are newly involved in business.

- To attract customers in buying or purchasing our product.

(ii) Existing business.

-To inform market of product’s packaging improvement.

6.2 Description of products

The MADID Ball is wrap separately with water soluble paper wrapping. Then, the
MADID Ball will packaging into burlap bag. There are three different size which depend
on the amount of MADID Ball contain inside the bag. The high resistant cotton rope
come along with cardstock at the side of bag.

Table 6.2.1 Product description

Product Description

Features
 Available in various amount (12pcs, 6pcs,3pcs)
 Wrapped separately.

Materials  Water soluble paper wrapping.


 Burlap bag.
 High resistant cotton rope.
 Cardstock.
Benefits  Long lasting consumption.
 Biodegradable and save environment.
 Easy to bring.

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Table 6.2.2 Product illustration

6.3 Target market

Target Market Descriptions

Use for house appliances (aquarium,


Household.
pond)

Use in water sources.

Farmer, animal breeder and theme park. Accelerate the pace of economic

development.

Agricultural and aquaculture university or For research.

business. Apply on cultivated area.

Government agencies. Use for water quality.

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6.3.1 Geographic Segmentation with explanation

Geographic segmentation is one types of market segmentation which target the


customers based on a predefined geographic boundary. It can be differences in interests,
values and preferences vary dramatically throughout cities, states and regions. This allow
us to target the varying wants and needs of customers in different regions. Furthermore,
our small businesses which in early stage with limited budgets can be more cost effective.
Climate and population in Lumut also make it such a great place for business. Lumut is in
range 28°C, wind North at 3km/hour and 98% humidity.

6.3.2 Volume Purchase with explanation

Our product come out with three various amount such as 12pieces, 6pieces and
3pieces with 3000gm, 1500gm and 750gm of net weight. This is because different target
market has different demand of product. Maximum amount which is 12 pieces is more
prefer for agriculture and aquaculture also government agencies sector. Mostly, that
amount is equivalent for area of water sources with 6 feet/2m depth and 90x250 feet. For
agriculture, it can be use along the season until harvest and get benefit from total per crop
which increase per season. The 6 pieces which suitable for farmer, animal breeder and
theme park. Middle range of area used cause this population need half from the basic
amount of MADID ball. The other 3 pieces is match for small scale usage like household.
This is because only a small goods and appliance is used such as water heater and
aquarium. The effectiveness is retain for three weeks. Then, the procedure must be
repeated to make sure the water and aquatic organism also the habitat is preserved by
presence of healthy plankton. The cleaning effect come along with sustainable
environment after first usage.

6.3.3 Quality Evaluation of Distributor with explanation

The water soluble paper wrapping is made up from adhesive component which is
polyvinyl alcohol. It is not easily react with heat because of the high melting point (228°c).
The quality has been approved by Roberto Astete and Cristian Olivares as researchers
from Chile and supported by US Food and Drug Administration (FDA) (Steffen, 2019).
Next, the burlap bag is made from high quality materials which not harm the natural
environment. Based on United Nations Climate Change (UNCC), it states that eco-bag is
conserve the environment by harmlessly biodegrading after numerous uses (Climate
Action, 2019). There two types of burlap bag which made from jute or linen. Jute’s type is
from skin of the jute plant or sisal fibers that may be combined with other vegetable fibers
while linen’s type is a flax grows naturally and requires no additional water other than
rainwater, making it the most eco-friendly fabric. Because it’s a natural fiber, flax linen is
recyaclable and biodegrade. The whole flax plant can be used, leaving no wate. In
addition, there are a various size of ready made linen bag from the biggest (30x40cm) to
the smallest (8x10cm) in market. Thus, we choose type of linen fabric compared to jute
fabric which have a limited size only.

6.4 Market size

Population in Lumut is approximately 31,880 of peoples.

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6.4.1 Population table

6.4.1.1 Households.
Table 6.4.1.1 Households.

No of No of items Price/unit
Type of outlet Total
populations needed (unit) (RM)
Bukit Permata 5 166,950.00
1000 33.39
Apartment
5 166,950.00
PR1MA Lumut 1000 33.39
Segari 8 347,256.00
1300 33.39
Residents
18 681,156.00
TOTAL

Note:
1 unit = 1 pack
1 pack = 3 MADID ball
Price per pack = RM 33.39

6.4.1.2 Farmer, animal breeder and theme park.


Table 6.4.1.2 Farmer, animal breeder and theme park.

No of items to Price/unit
Type of outlet No of Outlet Total
needed (unit) (RM)
Frenzy Water
1 20 39.39 787.80
Park Lumut
Marina Water
1 15 39.39 590.85
Park
Animals Training
and Husbandry 1 25 39.39 984.75
Center
Lumut Coconut
3 20 39.39 2,363.40
farm.

TOTAL 80 4,726.80

Note:
1 unit = 1 pack
1 pack = 6 MADID ball
Price per pack = RM 39.39

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6.4.1.3 Agricultural and Aquaculture University or business.
Table 6.4.1.3 Agricultural and Aquaculture University or business.

No of items to Price/unit
Type of outlet No of Outlet Total
needed (unit) (RM)
Lumut Malaysia
10
Fisheries Collage 1 51.39 513.90
(KPML).
Industry of Udang
25 20 51.39 25,695.00
Galah.
Lumut
Aquaculture Sdn. 1 8 51.39 411.12
Bhd.
Swee Sim
Agriculture 1 5 51.39 256.95
Farming Sdn. Bhd.

TOTAL 43 26,876.97

Note:
1 unit = 1 pack
1 pack = 12 MADID ball
Price per pack = RM 51.39

6.4.1.4 Government agencies.

Table 6.4.1.4 Government agencies.

No of items to Price/unit
Type of outlet No of Outlet Total
needed (unit) (RM)
Lumut Fisheries
1 10 51.39 513.90
Complexes (LKIM)
Turtle Conservation
and Information 1 20 51.39 1,027.80
Center (LUMUT)
Federal Agricultural
Marketing Authority 6 5 51.39 1,541.70
(FAMA).
TOTAL 35 3,083.40

Note:
31
1 unit = 1 pack
1 pack = 12 MADID ball
Price per pack = RM 51.39

6.4.2 Total market size

Total market size = 681,156 + 4,726.80 + 26,876.97 + 3,083.40


= 715,843.17 x 12
= 8,590,118.04

6.5 Competitors

6.5.1 Identifying competitors

Table 6.5.1 Competitive analysis

Competitors Strengths Weaknesses


 Come with three amount
EMRO (300mL, 1000mL and  Liquid form may leak
Malaysia Sdn 5000mL). from container.
Bhd - EM.1  Improves organic matter  More expensive.
Mictobial breakdown.
Inoculant  Have license agreement with
EM Research Organization
(EMRO Japan).
 Help reduce odor.
Kasco  Dry product which highly  Difficult to find online and
Manufacturing concentrated and easy to mostly in Amazon.com
Co Inc - Kasco store.  Not retain for a long time.
Marine Macro-  Biodegradable packaging
Zyme (water-soluble bag).
 Use only small amount to  Applicable for pond
SanoLife Sdn react. based farming shrimp
Bhd - Sanolife  Places no extra oxygen and fish.
PRO-W demand on the pond.  Be effective after usage
Sanocare PUR first.

6.5.1 Ranking of the competitors

Table 6.5.2 Ranking of the competitors

Rank No Competitors
1 EMRO Malaysia Sdn Bhd - EM.1 Mictobial Inoculant
2 Kasco Manufacturing Co Inc - Kasco Marine Macro-Zyme
3 SanoLife Sdn Bhd - Sanolife PRO-W

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6.6 Market Share

6.6.1 Market share before the entry of your business.

Table 6.6.1 Market share before the entry of your business

Before entrance Amount


Competitor
(%) (RM)
EMRO Malaysia Sdn. Bhd. -
50 4,295,059.02
EM.1 Mictobial Inoculant

Kasco Manufacturing Co Inc -


30 2,577,035.41
Kasco Marine Macro-Zyme

SanoLife Sdn. Bhd. - Sanolife


20 1,718,023.61
PRO-W

TOTAL 100 8,590,118.04

6.6.2 Adjusted market share after the entry of your business.

Table 6.6.2 Market share after the entry of your business.

After entrance Amount Percentage of


Competitor
(%) (RM) loss (%)
EMRO Malaysia Sdn
3,865,553.12
Bhd - EM.1 Mictobial 45 5
Inoculant
Kasco Manufacturing
Co Inc - Kasco Marine 27 2,319,331.87 3
Macro-Zyme

SanoLife Sdn Bhd - 1,546,221.25


18 2
Sanolife PRO-W

MICROBES
ALLIANCES SDN 10 859,011.80 -
BHD- MADID Ball

TOTAL 100 10
8,590,118.04
33
6.7 Sales forecast
Table 6.7 Sales Forecasting

Month Sales Forecast (RM)


January 2020 51,584.30
February 2020 51,584.30
March 2020 71,584.32
April 2020 71,584.32
May 2020 71,584.32
June 2020 71,584.32
July 2020 71,584.32
August 2020 71,584.32
September 2020 71,584.32
October 2020 71,584.32
November 2020 91,584.32
December 2020 91,584.32
Year 1 859,011.80
Year 2 944,912.98
Year 3 1,086,649.93

6.8 Market strategy

6.8.1 Product

For those who have a problem with water’s quality, no worries anymore. MADID Ball
come out with three amount that depend on your necessity. This product is efficient and
suitable for everyone whether a students, housewives and retirees. The cardstock that
attach with high resistant rope is practical both gender because it provide necessary
information including ingredients and instructions. The product labeling is also important
to allow consumers to know about the product. The MADID Ball is wrapped separately
with water soluble paper wrapping. It allow to retain the effectiveness of the product
compared without the wrapping. This does not effects the sale because the duration
which almost three weeks make the customer to repeat order for next month. The burlap
bag is made of biodegradable ingredient which is high quality linen fabric. This linen
fabric is breathable, soft, comfortable, washable, lighfast and antiseptic. This burlap bag
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which is pouch with cotton drawstring design is for easy fastening and avoiding loss of
items also durable.

6.8.2 Price

We are choosing perceived value method to determine the price of our product. This
is because our product is still new in the market. We are the first company which
distribute MADID Ball with eco-friendly concept. Our initial modal is RM24 only for MADID
Ball while estimation cost for packaging item is RM54.78. We take 50% of its which is
RM27.39 to include with MADID Ball’s price. As conclusion, our selling price is RM33.39
(3 pieces), RM39.39 (6 pieces) and RM51.39 (12 pieces). All stated price is exclude
postage. RM4.90, RM7.30 and RM11.50 is postage charge that corresponding to 3
pieces, 6 pieces and 12 pieces. The price is stil affordable and reasonable. However,
customer can directly purchase the product in walk in price which same as price without
postage from our office.

6.8.3 Place

We chose Lumut, Perak as our office and store because the location is very strategic
to our target customers. About three bank are located nearest the place such as
Maybank, Bank Simpanan Nasional and Ar Rahnu YaPEIM Lumut’s Branch. We believed
that there will be a huge turnout from customers that are keep to know about our
products. Furthermore, we will experience numbers of neighborhood that are located
around our shop also people who comes for holiday surround Lumut Waterfront Jetty
Wing.

Figure 6.8.3: Location of place surround according to Google Map.

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Distribution channel :

Supplier Microbes Post Offices


Alliances
Sdn.Bhd.

Consumers

6.8.4 Promotion

We will make a promotion of product with a great combo of amount and price during
end of the year. End of the year as well as for clearance stock. Therefore, it will increase
the sell in a year. Next, we will distribute 500 pieces of pamphlet to promote people and
premises nearby. Then, we will provide business cards that include our contacts for
further information of new product or any comment from clients. As usual media sosial
and network is the key of promotion such as Facebook, Instagram, Twitter, Pinterest also
make an official website. With the help from social media’s influencers who make paid
review can appointed the Youtube as another promotion stage.

6.9 Marketing Budget

Table 7.12.1 Marketing Budget

Monthly Other
Fixed Assets
Item Expenses Expenses
(RM)
(RM) (RM)

Fixed Asset
2,500
Signboard
Working capital
1,000
Promotion and advertising
200
Paid review
Other Expenses
90
Pamphlet 80
Business Cards
TOTAL 2,500 1,200 170

36
37
OPERATIONAL PLAN

38
6 Operational Plan

7.1 Component of Operating Systems

7.1.1 Business Input

Material: Direct material to be processed into finished products.


1) Burlap bags.
2) Cardstock.
3) High resistant jute rope.
4) MADID ball.
5) Water soluble paper wrapping.
Machine: machinery used to build together direct materials into finished
product.
1) Paper trimmer
2) Industrial label printer.
Land and Building: storing room, loading site, process room and office.
Labour: Hired workers to conduct specific task in storing room, loading
site, process room and office.

7.1.2 Transformation Process

Packaging Process
1) MADID ball is obtained from our supplier, EPB Global Resources by
post delivery.
2) MADID ball is packed in burlap bags according to its amount and
packaging size.
3) Label of packaging is tied to burlap bags.

7.1.3 Output

The output refers to our finished products, specifications, number of


products produced, cost, manageability and performance. The expected
output of our business is a packaged MADID ball obtained from our
supplier.

39
7.1.4 Feedback

Feedback from customers are highly needed for improvement of our


product quality. Customers can give their feedbacks through many
channels such as social media and offline material like through mailing and
questionnaire. Their comments, reactions and complain are helps us
identifying the imperfection and lacking in our product.

7.1.5 External Environment

External environment make mention of influence in our product due to


surrounding events involving many condition, entities and factors on the
flow of product process. The opportunity and risk can lead us to final
decision making in leading our product to success.

7.2 Process Planning for Manufacturing

7.2.1 Symbol of Process Chart

Table 7.2.1 Table of Symbol of Process Chart

Symbol Activity Description


Activity that modify, transform or give
Operation
added value to the input.

Movement of materials or goods from one


Transportation
place to another.

Activity that measure that standard or


Inspection
quality.

Process is delay because in process


Delay
materials are waiting for each activity.

Finished product or goods are stored in


Storage
the storage area or warehouse.

40
7.2.2 Process flow chart

41
Figure 7.2.2: Process Flow Chart

7.2.3 Activity chart

42
Figure 7.2.3: Flow of Activity Chart.

7.3 Operations Layout

7.3.1 Layout based on the product

43
Figure 7.3: Layout based on process

Note:

Exceptional step during process.

Compulsory step during process

7.4 Production Planning

7.4.1 Sales forecast per month

(a) Households.

Average sales forecast per month = RM 681,156.00

The sales price = RM 33.39

Number of output per month = RM681,156.00 /RM 33.39

= 20,400 units/month

44
(b) Farmer, animal breeder and theme park.

Average sales forecast per month = RM 4,726.80

The sales price = RM 39.39

Number of output per month = RM4,726.80 /RM 39.39

= 120 units/month

(c) Agriculture and Aquaculture University or business.

Average sales forecast per month = RM 26,876.97

The sales price = RM 51.39

Number of output per month = RM 26,876.97/RM 51.39

= 523 units/month

(d) Government agencies.

Average sales forecast per month = RM 3,083.40

The sales price = RM 51.39

Number of output per month = RM 3,083.40/RM 51.39

= 60 units/month

7.4.2 Number of output per day

(a) Households
No. of output per month = 20,400
No. working days per month = 20
Number of output per day = No. Of output per month/ No. of working
days per month
= 20,400/20
= 1,020 unit/ day
45
(b) Farmer, animal breeder and theme park.
No. of output per month = 120
No. working days per month = 20
Number of output per day = No. Of output per month/ No. of working
days per month
= 120/20
= 6 unit/ day

(c) Agriculture or Aquaculture University or business.


No. of output per month = 523
No. working days per month = 20
Number of output per day = No. Of output per month/ No. of working
days per month
= 523/20
= 26 unit/ day

(d) Government agencies


No. of output per month = 60
No. working days per month = 20
Number of output per day = No. Of output per month/ No. of working
days per month
= 60/20
= 3 unit/ day

7.4.3 Number of units per hour

(a) Household

Daily working hour = 8 hours

No. of output per day= 1,020 units

No. of output per day / daily working hours = 1,020/8

= 128 unit/hour

46
(b) Agriculture and Aquaculture University or business.

Daily working hour = 8 hours

No. of output per day= 6 units

No. of output per day / daily working hours = 6/8

= 1 unit/hour

(c) Farmer, animal breeder and theme park.

Daily working hour = 8 hours

No. of output per day= 26 units

No. of output per day / daily working hours = 26/8

= 3 unit/hour

(d) Government agencies.

Daily working hour = 8 hours

No. of output per day= 3 units

No. of output per day / daily working hours = 3/8

= 1 unit/hour

7.5 Material Planning

7.5.1 Material Requirement Planning

7.5.1.1 Raw Material Required per Month (Bill of Material)

Table 7.5.1: Raw Material Required per Month (Bill Material)

No. Material Quantity Safety Total Price/unit Total price


Stock Material
47
Requireme
(RM) (RM)
nt

26 bags
1. MADID ball - 26 bags 1,091.20 28,371.20
(26,000)

Burlap bags

2. (20cmx30cm) 20,400 pcs 20 pcs 20,420 0.015 306.30

Burlap bags
3. 130 pcs 20 pcs 150 0.05 7.50
(27cmx32cm)

Burlap bags
4. 583 pcs 17 pcs 600 0.04 24.00
(30cmx40cm)

5. Cardstock 32 boxes 1 boxes 33 6.00 198.00

1 bulk
High-resistant jute 6 bulk
6. (125 7 3.00 21.00
rope (125 pcs)
pcs)

11 bulk 1 bulk
Water soluble paper
7. (6000 (6000 12 6.00 72.00
wrapping
pieces) pieces

TOTAL 29,000
48
Note:
1 bag of MADID ball = 1000 pieces
1 pieces of high resistant rope = 100 m per pieces
1 box of cardstock = 700 pieces of cardstock
1 piece of water soluble wrapping = 110 cm x 1m

7.5.2 Identify Supplier


Table 7.5.2: Table of Suppliers
No. Material Supplier Address
1. EPB Global Resources 16, Taman Jati, Fasa 2,
MADID ball 33000, Kuala Kangsar,
Perak
2. Burlap bags Global Sunpoint Sdn Bhd 10, Lording Batu Nilam
8A
Bandar Bukit Tinggi
Klang 41200
Selangor Malaysia
3. Cardstock Malaysian Paper Carton Lot 1769, Jalan Rukun,
Manufacturers Sdn Bhd Mukim Ijok, Kg. Ijok,
45600 Bestari Jaya
(Batang Berjuntai),
Selangor Malaysia.
4. High-resistant jute Xiamen Bethel Ribbon & 3rd Floor, NO.13 Punan
Trims Co., Ltd. 2nd Road, Xiamen, China
rope 361004
5. Water soluble paper Vickma Hardware Sdn Bhd No. 47 & 49, Jalan
Mutiara Emas 5/23,
wrapping Taman Mount Austin,
81100 Johor Bahru,
Johor, Malaysia.

7.6 Machine and Equipment Planning

7.6.1 Amount of machine & equipment required

(a) Paper trimmer machine.

Planned Rate of Production per day X Standard production time


Machine productive time per day
= 3,444/ 360 min (6 hours x 60 minutes) X 0.03 min
= 0.3 @ 1 paper trimmer machine

(b) Industrial label printer.

49
Planned Rate of Production per day X Standard production time
Machine productive time per day
= 1,055/360 min (6 hours x 60 minutes) X 0.03 min
= 0.09 @ 1 industrial label printer.

7.6.2 List of machine & equipment

Figure 7.6.2: Table of machine listing.

Machine No of machine
Paper trimmer machine

Industrial labelling machine

7.6.3 List of machine supplier

Table 7.6.3: Table of machine supplier.

Machine Supplier

Paper trimmer machine Asia Plus Office Automation Sdn Bhd


No. 42A, (G/Floor), Jalan PJS 1/46,
Jalan Petaling Utama, Off Jalan Klang Lama,
46000 Petaling Jaya, Selangor.

50
Malaysia

Industrial labelling printer PC Labels Sdn Bhd


No. 49, Jalan MIVO 1, Taman Perindustrian
Desa Aman,
52200 Kuala Lumpur.

7.6.4 Machine and Equipment

Table 7.6.4: Table of machine and equipment.

Total Cost
Price/unit
Item Quantity Monthly
(RM)
(RM)

Paper trimmer machine 1 680.00 680.00

Industrial labelling 1 1,359.00 1,359.00


printer

TOTAL 2,039.00

Price/unit Total Cost


Item Quantity
(RM) (RM)
Item Quantity Price/Unit (RM) Total Cost Monthly
(RM)
Glove 1 box 6.00 6.00
Apron 6 pieces 10.00 60.00
Mask 1 box 9.50 9.50
Sweeper and shovel 2 set 10.00 20.00
set
Wiping cloth 1 bulk 15.00 15.00
Crate (medium) 10 unit 10.00 100.00
Crate (large) 125 unit 15.00 1,875.00
Shelves 4 unit 150.00 600.00
Table (long) 4 unit 330.00 1,320.00
Table (square) 2 unit 200.00 400.00
Chairs 1 bulk (10 unit/bulk) 100.00 100.00
TOTAL 4,505.50

7.7 Manpower Planning

51
7.7.1 Organization Chart for Operation Department

Figure 7.7.1 Organizational Chart (Head of Department + workers)

Operational Manager
Nurul Hadirah bt Mohamad Ashraf

Operator 1 Operator 2 Operator 3


Izni Shafiqah bt Mohd Nur Sakeenah bt Nur Safiah `Aqilah bt
Razi Khairudin Mohd Jamil

7.7.2 Amount of direct labour required

Operator:

Planned Rate of Production per day X Standard production time

Worker productive time per day

= 1,055 unit/480 min (8 x 60 min) X 0.3 min

= 0.66 @ 1 operator.

7.7.3 List of Operation Personnel

Table 7.7.3: Table of Operation personnel

Position No of personel
Operational manager 1
Operator 3

7.7.4 Schedule of task and responsibilities

Table 7.7.4 Schedule of task and responsibilities

52
Position Task and Responsibilities
Operational Manager  Inspect all the raw materials received from
suppliers.
 Check the quality of finished product.
 Check the quality of packaging such as endurance
of packaging to surrounding and correct amount of
MADID ball in a packaging and ensure
 Inform to operator about the damaged goods.
 Record all the damaged goods.
 Contact supplier if there is damage in raw materials
received.
 Calculate and record the flow of raw materials in
and out of storing room.
 Check the quality of raw materials stored in storing
room.
Operator  Pack all the MADID ball according to its amount
and packaging size
 Use paper trimmer to cut the soluble water paper
according to its size in order to wrap the MADID
ball.
 Use the industrial label printer to print out the label
require for each packaging
 Assist in moving of raw materials in and out of
storing room.

7.7.5 Schedule of remuneration

Table 7.7.5 Schedule of remuneration

EPF
SOCSO
Monthly Contribution Amount
Position No . ( 1.75% )
Salary (RM) (13%) ( RM )
(RM)
(RM)
500.00 x 3 =
Operator 3 195.00 26.25 1,721.25
1500

TOTAL 1,721.25

7.8 Overhead requirement

53
7.8.1 Operations Overhead (indirect labour/indirect material /insurance

/maintenance and utilities)

Table 7.8.1 Operations Overhead (indirect labour/indirect material /insurance

/maintenance and utilities)

No. Types of Overhead Monthly Cost (RM)

1. Electricity 3,000.00

2. Water 1,000.00

3. Rental 3,000.00

4. Telephone 540.00

5. Internet 500.00

7. Machine maintenance 750.00

9. Machinery 7,476.00

TOTAL 16,266.00

7.9 Total Operations Cost

Total Operation Cost = Direct Material Cost + Direct Labor Cost + Overhead Cost
= 29,000 + 1,721.25 + 16,266.00

= RM 46,987.25

7.10 Cost per unit

Cost per unit = Total Operations Cost (RM)

Total number of Output (Output per month)

=RM 46,987.25 / 21,103 units

= RM 2.23 per unit

54
7.11 Productivity Index (PI)

Productivity Index = Total value of Output (Sales forecast per month) - (sales)

Total Value of input (Total Operation Cost)

= (RM 681,156 + RM 4,726.80 + RM 26,876.97 + RM 3,083.40) / 46,987.25


= RM 715,843.17 / 46,987.25
= 15.23

7.12 Location Plan

Building address or Location:


Pt 4127 Jalan Sultan Idris Shah,Lumut Waterfront, 32200 Lumut, Negeri Perak

 Reachable: The area of the building is close to the city’s main attraction area
consist of many people and other facilities.

 Climate: Lumut’s weather is usually hot and humid during the day where
operation hour is done.

 Price of rental: Price of rental is suitable with the standard market price.

 Infrastructure: Buildings are in well condition, reachable roads and power supply.

7.13 Business and operation hours

Business hour = 9 hours per day (8.00 a.m until 5.00 p.m), including Lunch Hour
(1.00 p.m until 2 p.m)

Operating hour = 8 hours per day (8.00 a.m until 4.00 p.m), including Lunch Hour
(1.00 p.m until 2 p.m)

Working days = 5 days per week (Monday – Friday)

7.14 License, permits and regulations required

7.14.1 Business license

Business license can be applied at Manjung City Council.

7.14.2 Building license

55
Building license can be applied at Manjung City Council.

7.14.3 Vehicle license

Vehicle license for marketing van can be applied at JPJ Sri Manjung.

7.14.4 Employee Regulation

Employee contribution for EPF and SOCSO.

7.14.5 Signboard License

Signboard license can be applied at Manjung City Council.

7.15 Operations Budget

Table 7.15 Operations Budget

Monthly Other
Expenses Expenses
Item Fixed Assets
(RM) (RM)

Fixed Asset

Machine 2,039.00
Vehicle 80,000
Equipment 4,505.50

Working Capital
16,266.00
Overhead
1,721.25
Salary
29,000
Materials
Other Expenses

500.00
56
Licenses
1,000.00
Insurance & Road tax
Pre-Operations

Business Registrations
60.00

TOTAL 86,543.50 46,987.25 1,560.00

57
ADMINISTRATION PLAN

58
8. Administration Plan

8.1Organizational Chart for Administration and Finance Department


Figure 8.1 Organizational Chart (GM + Head and workers of Administration and
Finance Department)

General Manager
Izni Shafiqah bt Mohd Razi

Head of Administration Head of Finance


Department Department
Nur Safiah `Aqilah bt Nur Sakeenah bt
Mohd Jamil Khairudin

Clerk Accountant
Arifah bt Ahmad Nurul Hadirah bt
Damahuri Mohamad Ashraf

8.2 Manpower Planning

Table 8.2 List of Personnel (GM + Head and workers of Administration and Finance
Department)

Position No of Personnel

General Manager 1

Administration Manager 1

Clerk 1

Financial Manager 1

Accountant 1

Clerk
Clerk 59
Arifah
Arifah
bt bt
Ahmad
Ahmad
Damahuri
Damahuri
TOTAL 5

8.3 Schedule of Task and Responsibilities

Table 8.3 Task and Responsibilities (GM + Head and workers of Administration and Finance

Department)

Position Task and Responsibilities


 Plan and manage all business operations to achieve target
General goals.
Manager  Provide advice and guidance to employees in their task.
 Develop strategies to enhance overall quality and productivity.

 Monitor administrative operations of a department.


 Collect, organize, and storing information using computers and
Administration
filing systems.
Manager
 Develop strategies in administrative manager functions to
efficiently operate in organization.

 Handle office communication with outside visitors which


includes answering phone inquiries, greeting and directing
guests.
Clerk
 Handle and organize office filing systems effectively.
 Prepares, issues, and sends out receipts, bills, policies,
invoices, statements, and checks.

 Collating, preparing and interpreting reports, budgets,


Financial accounts, commentaries and financial statements.
Manager  Overseeing the flow of cash and financial instruments.
 Establish key financial strategies to enhance business.

 Gives financial information to management by researching and


analyzing accounting data.
Accountant  Recommends financial action by completing database
backups.
 Documents financial transaction.

60
8.4 Schedule of Remuneration

Table 8.4 Schedule of Remuneration

SOCSO
Monthly EPF
Contribution
Salary Contribution Total
Position Quantity (1.75%)
(RM) (13%) (RM)
(RM)
(RM)
General
1 2,500.00 320.00 43.75 3,442.50
Manager
Administration
1 1,500.00 195.00 26.25 1,721.25
Manager
Marketing
1 2,000.00 260.00 35.00 2,295.00
Manager
Financial
1 1,500.00 195.00 26.25 1,721.25
Manager
Accountant 1 2,000.00 260.00 35.00 2,295.00

TOTAL 5 9,500.00 1,230.00 166.25 11,475.00

8.5 Office Furniture, Fitting and Office Supplies

Table 8.5.1 List of Office Furnitures and Fittings

Price/Unit Total
Type Quantity
(RM) (RM)
Table 5 150.00 750.00

Computer 5 2,099.00 10,495.00

Printer 2 194.00 388.00

Chair 5 80.00 400.00

Cabinet 3 275.00 825.00

Rack 2 75.00 150.00

Air conditioner
5 1,860.00 9,300.00
(Panasonic)

Sofa 2 280.00 560.00

Coffee table 1 109.00 109.00

Total 22,977.00

61
Table 8.5.2 List of Office Supplies

Price/Unit Total
Type Quantity
(RM) (RM)

Paper 5 15.50/ream 77.50

Ink cartridge 2 68.60/box 137.20

Pen 1 26.00/box 26.00

Pencil 1 7.50/box 7.50

Eraser 1 10.00/box 10.00

Total 258.20

8.6 Administration Budget

Table 8.6 Administration Budget

Monthly Other
Fixed Expenses Expenses
Item
Assets (RM) (RM)

Fixed Asset
22,977.00
Furniture
Working capital

Office supplies
Salary, EPF, 258.20
SOCSO 11,475.00

Other Expenses

Maintenance 1,000.00

TOTAL
22,977.00 11,733.20 1,000.00

62
FINANCIAL PLAN

63
9 Financial Plan (Arial 12, BOLD)

Financial planning is the process of estimating the capital required and


determining its competition. It is the process of framing financial policies in relation to
procurement, investment and administration of funds of an enterprise. One of the
importance of financial plans is to ensure the adequate funds. Next, financial
planning helps in ensuring a reasonable balance between outflows and inflow funds
so that stability is maintained and helps in making growth and expansion programs
which helps in long-run survival of the company.

The total project cost spends by Microbes Alliances Sdn. Bhd. is 276,771 MYR
which is divided into two; capital expenditure and working capital with total of
135,891 MYR and 140,880 MYR respectively. In this company, capital invested can
be divided into monthly and annually. For Sales and Marketing Department, the
capital invested is 1,200 MYR, General and Administrative Department spent 35,858
MYR and Operations and Technical Department spent 23,247 MYR each month. For
annually payment, the expenditure spent is 1,000 MYR for insurance and road tax
under Operations and Technical Department and RM 170 is spent under Sales and
Marketing Department. Pre-Operating and Incorporation Costs which is paid in one-
off payment is 65,805 MYR including development cost, business incorporation,
deposit for rent and utilities and other pre-operating and incorporation costs.

From the cash flow we proposed, we can see that sales are increasing. This is
because our customer will continuously purchase the product for nutritions of their
fishes, animals or even plants. In October, November and December, the sales is in
high demand because of near to end of the year which means Agriculture and

64
Aquaculture University will be needing it for their projects. Other than that, customers
might want to buy the product when there is National Fish Farmers Day.

9.1 Operating Budget

9.1.1 Administrative Department

9.1.2 Marketing Department

9.1.3 Operations Department

Table 9.1 Pre-Operating & Working Capital Projections

Pre-Operating & Incorporation Costs (one-off) RM


Development cost -
Business incorporation -
Deposit (rent, utilities, etc.)
16,266
Other pre-operating & incorporation costs 60
Sales & Marketing Costs (monthly)  
Promotions and advertising 1,000
Paid review 200
General & Administrative Costs (monthly)
Utilities -
Office supplies 258
Salaries, Wages, EPF & SOCSO
11,475
Operations & Technical Costs (monthly)
65
Purchase of Raw Materials/Goods
29,000
Carriage Inwards -
Salaries, Wages, EPF & SOCSO 1,721
Other Expenditure (annually)
Pamphlet & Business Cards 170
Maintanace 1,000
Licenses,Incurance & Road Tax (Van) 1,500
Total Pre-Operations & Working Capital Expenditure
62,650

9.2 Project Implementation Cost and Sources of Finance

Table 9.2.1 Project Implementation Cost

Capital Expenditure Cost Sources of Financing


Land & Building   Cash
Office Equipment   Cash
Furnitures and Fittings 22,977 Loan
    Cash
    Cash
Signboard 2,500 Cash
    Cash
    Cash
    Cash
Machine 2,039 Cash
Vehicle (Van) 80,000 Existing asset
Equipment 4,506 Cash
    Cash
Working Capital 1 months  
Sales & Marketing Costs (monthly) 1,200 Cash
General & Administrative Costs (monthly) 11,733 Cash
66
Operations & Technical Costs (monthly) 30,721 Cash
Pre-Operating & Incorporation Costs (one-off) 16,326 Cash
Other Expenditure (annually) 2,670 Cash
Provision for Contingencies 5%   8,600 Cash
TOTAL 183,272  

Table 9.2.2 Sources of Project Financing

Own Contributions
Hire-
Capital Expenditure Cost Existing F. Loan
Purchase
Cash Assets
Land & Building  
-
Office Equipment  
-
Furnitures and Fittings 22,977
22,977
   
-
   
-
Signboard 2,500
2,500
   
-
   
-
Machine 2,039
2,039
Vehicle (Van) 80,000
80,000
Equipment 4,506
4,506
   
-
Working Capital  
   
Sales & Marketing Costs
1,200
(monthly) 1,200  
General & Administrative 11,733  
67
Costs (monthly) 11,733
Operations & Technical Costs
30,721
(monthly) 30,721  
Pre-Operating &
Incorporation Costs (one- 16,326
off) 16,326  
Other Expenditure
2,670
(annually) 2,670  
Provision for Contingencies 8,600
8,600  

TOTAL 183,272 80,295 80,000 22,977  

9.3 Fixed Asset Depreciation Schedule

Table 9.3 Capital Expenditure

Types of Fixed Assets Estimated Cost (RM) Estimated Economic Life


(years)
Administrative/Organisation    
Land & Building    
Office Equipment - 5
Furnitures and Fittings 22,977 5
Sales/Marketing  
Signboard 2,500 5
Operations/Technical  
Machine 2,039 5
Vehicle (Van) 80,000 5
Equipment 4,506 5
  - 5
Total
112,022  

68
9.4 Loan and Hire Purchase Depreciation Schedule

Table 9.4.1 Hire-Purchase Schedules

HIRE-PURCHASE REPAYMENT SCHEDULE


Amount
(RM)      
Interest Rate 5%    
Duration
(yrs) 5      
       
Bayaran Ansuran
Tahun Baki Pokok
Pokok Faedah BayaranTahunan
  - - - -
1 - - - -
2 - - - -
3 - - - -
4 - - - -
5 - - - -
6 - - - -
7 - - - -
8 - - - -
9 - - - -
10 - - - -
11 - - - -
12 - - - -
13 - - - -
14 - - - -
15 - - - -
16 - - - -
17 - - - -
69
18 - - - -
19 - - - -
20 - - - -

Table 9.4.2 Loan Amortization Schedules

LOAN AMORTIZATION SCHEDULE


Amount (RM) 22,977    
Interest Rate 5%    
Duration (yrs) 10    
Method Annual Rest  
Instalment Payments
Year Principal Balance
Principal Interest Annual Payments
  - - - 22,977
1 1,827 1,149 2,976 21,150
2 1,918 1,058 2,976 19,232
3 2,014 962 2,976 17,218
4 2,115 861 2,976 15,103
5 2,220 755 2,976 12,883
6 2,331 644 2,976 10,551
7 2,448 528 2,976 8,103
8 2,570 405 2,976 5,533
9 2,699 277 2,976 2,834
10 2,834 142 2,976 0
11 0 0 0 0
12 0 0 0 0
13 0 0 0 0
14 0 0 0 0
15 0 0 0 0
16 0 0 0 0
17 0 0 0 0
18 0 0 0 0
19 0 0 0 0
70
20 0 0 0 0

9.5 Pro-forma Cashflow Statement

(refer excel)

9.6 Pro-forma Income Statement

Table 9.6 Pro-Forma Income Statement

Years 2020 2021 2022


Sales 859,008 944,913 1,086,650
Less: Cost of Sales (Notes 1 & 2) 339,410 147,499 167,777 #VALUE! #VALUE!
Gross Profit 519,598 797,414 918,873 #VALUE! #VALUE!
           
Less: Expenditure          
Pre-Operating & Incorporation Expenditure 60        
General & Administrative Expenditure 140,798 140,798 140,798    
Sales & Marketing Expenditure 14,400 14,400 14,400    

Operations & Technical Expenditure 20,655 20,655 20,655 #VALUE! #VALUE!


Other Expenditure 2,670 2,670 2,670
Interest on Hire-Purchase      
Interest on Loan 1,149 1,058 962
Depreciation of Fixed Assets 22,404 22,404 22,404 #VALUE! #VALUE!
Total Expenditure 202,137 201,985 201,889
Net Income Before Tax 317,462 595,429 716,984 #VALUE! #VALUE!
Tax   0 0 0 #VALUE! #VALUE!
Net Income After Tax 317,462 595,429 716,984 #VALUE! #VALUE!
Accumulated Net Income 317,462 912,890 1,629,874 #VALUE! #VALUE!
Note 1            
Cost of Sales          
Opening inventory 0 8,590 18,898
Add: Total Purchases 348,000 157,807 181,478

71
Carriage Inwards & Duty      
Less: Ending Inventory 8,590 18,898 32,600
        339,410 147,499 167,777 #VALUE! #VALUE!
                 

9.7 Pro-forma Balance Sheet

Table 9.7 Pro-Forma Balance Sheet

      2020 2021 2022


ASSETS
               
Non-Current Assets (Book Value)        
Land & Building      
89,61 67,21
Other Fixed Assets 44,809
7 3
Other Assets            
Deposit 16,266 16,266 16,266
      105,883 83,479 61,075    
Current Assets            
   
Inventory     8,590 18,898 32,600
Accounts Receivable      
Cash Balance 384,434 990,040 1,713,713
      393,024 1,008,939 1,746,313    
               
TOTAL ASSETS 498,907 1,092,418 1,807,387    
               
Owners' Equity            
Capital   160,295 160,295 160,295

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Accumulated Income   317,462 912,890 1,629,874 #VALUE! #VALUE!
      477,757 1,073,185 1,790,169 #VALUE! #VALUE!
Long-Term Liabilities            
Loan Balance   21,150 19,232 17,218
Hire-Purchase Balance         #VALUE! #VALUE!
      21,150 19,232 17,218 #VALUE! #VALUE!
Current Liabilities            
Accounts Payable        
               
TOTAL EQUITY &
498,907 1,092,418 1,807,387 #VALUE! #VALUE!
LIABILITIES

9.8 Financial Performance

Table 9.8.1 Financial Ratio Analysis

Financial Ratio Analysis 2020 2021 2022

LIQUIDITY      
  Current Ratio NA NA NA
  Quick Ratio (Acid Test) NA NA NA
 
EFFICIENCY      
  Receivable Turnover NA NA NA
  Inventory Turnover #VALUE! #VALUE! #VALUE!
         
PROFITABILITY      
  Gross Profit Margin 60.49% 84.39% 84.56%
  Net Profit Margin 36.96% 63.01% 65.98%
  Return on Assets 63.63% 54.51% 39.67%
  Return on Equity 66.45% 55.48% 40.05%
         
SOLVENCY      
  Debt to Equity 4.43% 1.79% 0.96%

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  Debt to Assets 4.24% 1.76% 0.95%
  Time Interest Earned 275 562 745
         

Table 9.8.2 Break-even Analysis

Break-even Analysis 2020 2021 2022

Total projected sales(RM) 859,008 944,913 1,086,650


Total variable costs (cost of sales) 339,410 147,499 167,777
Contribution margin 519,598 797,414 918,873
Contribution margin ratio 60% 84% 85%
Fixed costs 202,137 201,985 201,889
Total costs 541,546 349,484 369,666
Net Profit 317,462 595,429 716,984

Break-even sales 334,175 239,347 238,752

Percentage of break-even to sales 39% 25% 22%

CONCLUSION

74
Our product, MADID balls has provide great benefits to consumers and to our
environment. By this, we hope that MADID balls will be the most preferred product that can
be used by all parties such as households, farmers and animal breeder. It is proved that this
product is very useful as it only needs a small amount of appliance and the effectiveness is
already present.

In a nutshell, with our intention and innovation, we hope to become parts of people
who are making other people’s lives more convenient and easier by using our product. We
will always provide full responsibility and commitment upon this product to be developed into
a more exclusive brand or material in the future. Other than that, we would take any chance
that directly and indirectly increases our business performance in the future.

75
REFERENCES

76
EMRO MALAYSIA. (2018). Retrieved October 27, 2019, from Effective Microorganisms:
https://emromalaysia.n.my/
Climate Action. (2019, October 21). Retrieved from Ecobags – Innovative, Eco-Friendly
Paper Bags by Pahal: https://unfccc.int/climate-action/momentum-for-change/activity-
database/momentum-for-change-ecobags-innovative--eco-friendly-paper-bags-by-
pahal
Info@inveaquaculture. (n.d.). Retrieved October 27, 2019, from Sanolife PRO-W:
https://www.inveaquaculture.com/product/sanolife-pro-w/
Kasco Marine. (n.d.). Retrieved October 27, 2019, from Macro-Zyme Beneficial Bacteria:
https://kascomarine.com/products/biologics-additives/macro-zyme/
Steffen, A. D. (2019, August 3). Intelligent Living. Retrieved from New Non-plastic Bags
Dissolve In Hot Or Cold Water In Minutes And Are Safe To Drink:
https://www.intelligentliving.co/biodegradable-bags-dissolve-water-minutes/
Cara Daftar SSM Secara Online. (2019, May 24). Retrieved from PANDUAN :
https://www.panduanmalaysia.com/cara-daftar-ssm/
Cara Pengiraan Kadar Caruman KWSP & SOCSO 2019. (2019, February 13). Retrieved
from Semakan Online: https://semakanonline.com/kadar-caruman-kwsp/

77
APPENDICES

78
Figure 1: Product of Competitor 1 Figure 2: Product of Competitor 2

Figure 2: Product of Competitor

Figure 3: Product of Competitor 3

79
PARTNERSHIP AGREEMENT

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