ENT300 Business Proposal Jeruk madu tip top

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ENT300 Business Proposal Jeruk madu tip top

  1. 1. JERUK MADU TIP TOP ENTERPRISE 1 | P a g e
  2. 2. 1.0 NAME OF COMPANY The name of this company is JERUK MADU TIP TOP is the official sales and marketing for the high quality and the most reliable pickles among Malaysia market. The significance for the name of JERUK MADU TIP TOP as our company name is, Jeruk Madu represent the product that we sell. This is because to make people easy to recognise our company and easy to remember. Tip Top is symbolized of high quality. We are believed that quality is the most important aspect in our company and for sure quality is more important than quantity. We want our potential customers to satisfy with our product and can be our loyal customers. 1.1 NATURE OF BUSINESS JERUK MADU TIP TOP is under food sector and the reason why we choose this sector as our main business is because we believe Malaysia has the capacity and potential to become a market leader in this sector. 1.2 INDUSTRY BUSINESS In Malaysia, this sector accounts for about 10% of Malaysia manufacturing output. Processed foods are exported to 80 countries, with an annual export of more than RM5 billion (USD 1.3 billion) which amounts to two-thirds of the total exports of over RM10 billion. Although the export performance of this sector has doubled over the last ten years, Malaysia continues to be a net importer of food products with annual imports of more than RM12 billion (USD3.2 billion). As the food processing industry plays a key role in the economy, government support will continue to encourage and nurture operators with the aim of increasing exports, replacing imports and adding value to product. The Industrial Production Index in Bank Negara June 2007 statistical bulletin showed an increase of 16.2% in production of the food manufacturing industry for the first quarter of 2007 (compared to the previous corresponding period). The growth of the manufacturing sector in general, is expected to continue to be export led with the share of resource-based exports anticipated leading to increasing consumption of imported food and beverages from western countries. Today, Malaysia provides a significant pool of active consumers who will continue to modernist their eating habits, leading to increasing consumption of imported food and beverages. JERUK MADU TIP TOP ENTERPRISE 2 | P a g e
  3. 3. 1.3 LOCATION OF BUSINESS Our shop is located at whereas our office is at . It is next to HSBC Bank, Home-Mart, Tesco Hypermarket and McDonalds. The reason why we choose this location is because it is strategic and has easy accessibility and well connected via linked to major highways such as KLSeremban Highway, AMJ Expressway and Ayer Keroh Expressway. Moreover, investor in part of Melaka Tengah New Golden Triangle is a thriving market of Bandar Cheng can expect a ready market of high growing population residents with cash to spend in this area. With our shop lot facing the highway, we stand to gain maximum exposure and publicity. Also, sufficient parking space and space road for loading goods and entrance giving advantage to us in doing the business daily either in management or sales perspective. 1.4 DATE OF BUSINESS COMMENCEMENT The date of our business commencement is on 27th January 2012 and the reason why we cannot start in 1st January is because the arising of some disputes in registration process of our business. 1.5 FACTOR SELECTING FRUIT PICKLES BASED BUSINESS Firstly we are inspired by the success of bumiputra entrepreneur who is Haji Ali who is the men behind of Jeruk Madu in Penang. Moreover, we want to encourage ex-students who hold Diploma or Degree from High Education in our country to become entrepreneur and not just depend in choosing job in public or private sector. Since fruit pickles are popular commonly among Malaysians and are suitable for every level of community and age so, we do not have to worry about target market and potential customer. Besides that, we want to change perception of Malaysian about bad effect of consuming fruit pickles too much. Some said that consuming fruit pickles too much can lead to cough, cancer and the condition of asthma patient can be worsen. So, in order to prevent this, we are using preservatives in making fruit pickles is apple cider which gives no side effects to our consumer. JERUK MADU TIP TOP ENTERPRISE 3 | P a g e
  4. 4. 1.6 FUTURE PROSPECT OF THE BUSINESS Our expectations for this Jeruk based company for the coming 10 years is that we have stable and strong management in the company that can generate more profit by not ignoring our quality. All this can be achieved by opening lots of franchise firstly in Malaysia and next Asia Pacific market. We also export our product to the most potential Asia Pacific country as such Indonesia, Thailand, China, Japan to be our global customer because we believe that if all this been realize we can make from 30%-65% annual return on our investment with the right location. We will also introduce lots of new products that will open the eye of Malaysian and the world. We plan to produce our beverage product line and use the Jeruk as the topping. This 10 years plan will generate more income for us and also make Malaysia well known throughout the world and make world believe that Malaysian able to be the best in what they do. JERUK MADU TIP TOP ENTERPRISE 4 | P a g e
  5. 5. 1.7 BUSINESS LOGO Company Names: “ TIP TOP” Explanation: 2. Tip Top - It‟s means new and different. Our company is the best of seller at the Southern State in Malaysia. JERUK MADU TIP TOP ENTERPRISE 5 | P a g e
  6. 6. Logo Explanation: Oval Shape The oval shape is the symbols of our company who are allowing all kind of our customer to taste our wonderful product. Which means that our product is affordable compare to others Pickels business company and can buy anywhere at Malaysia state. Exclamation Mark The exclamation mark symbol represent our product in the high rate og quality and we sure to give best satisfaction to our lovely customers until they cannot comment anything about our product. JERUK MADU TIP TOP ENTERPRISE 6 | P a g e
  7. 7. Colour Explanation Green The green colour is the symbols of our main product which mean we certainly use nature of fruits. Yellow Yellow represents the elegant and unique of our product which may bring satisfaction to customers when buying our product. Red Of course, red colours is the symbols of us which mean the strength of us and our product to be market at the southern state in Malaysia JERUK MADU TIP TOP ENTERPRISE 7 | P a g e
  8. 8. 1.8 THE PURPOSE OF PREPARING BUSINESS PLAN A business plan is written document that serves as a blueprint and guide for a proposed business project that one intends to undertake. There are several purposes in preparing business plan. Below are the lists of purposes that become the reason why we do the business plan. To Allow All Our Team Members To Think In Most Critical And Pratical Way Of The Business That We Had Chosen Which Is Partnership. By making the business plan, we can view all the aspect in the most detail manner. In starting the business, we cannot deny the important of aspects such as finance, marketing, administrative, operational, etc that relevant in the establishement of a business. In JERUK MADU we use this business plan to carefuland examine all the details starting from basic things for example, marketing. We will identified from the beginning who is our target customers, where is the place that most suitable to market our product etc. Thus it helps us in doing a good marketing process and showed that an pickles product is a marketable product. In the business plan each of the aspect mention above were studies in detail way. Thus, this allowed us to get good understanding about the particular business. Then we can see in a clear way what steps and actions that we must take the business become realistic and pratical. Not just information that useless for the strategic plan for the business. Guidelines for Managing The Business As been mention above, business plan consists of theory part of each aspect that we need to master in order to make the venture is profitable. In making the plan become real, plan and strategies are needed as guideline in making any decision that can affect the business development from time to time. In JERUK MADU, we see the business plan as primary resource for us in doing the entire task that occurs in our company. To Allocate Business Resources Effectively As a new business or venture, a financial matter is very crucial to be handling in most effective way. All the resources is quite limited since we a new in the industry and lots of money are needed in our effort to become a establish partnership in the competitive industry. The business plan allowed us to make a clear an effective plan on how we will spend our resources in the most effective manner. This is important to avoid any wasteful of resources such as fixed asset that we owned is allocate in effective manner. JERUK MADU TIP TOP ENTERPRISE 8 | P a g e
  9. 9. 1.9 BACKGROUND OF COMPANY Name of company: Jeruk Madu Tip Top Enterprise Business Address: GF , No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka.(Shop) Correspondence Address: 1F , No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka.(Office) Website Address: www.jerukmadutiptop.com Telephone Number: 06-5560292 Fax Number: 06-5560294 Form Of Business: Partnership Main Activities: Sell and Distribute Fruit Pickles (Food And Beverages) Date of Business Registration: 1 January 2012 Registration Number: TR2012/001 Name of Bank: SME Bank Bank Account Numbers: 0303-6020-774-058 JERUK MADU TIP TOP ENTERPRISE 9 | P a g e
  10. 10. GENERAL MANAGER Name : Mohd Asrul Bin Mamat I/C No : 860112-11-5745 Permanent Address : No 28 Taman Selasih, Jalan Sungai Rambai, 70090 Jasin, Melaka Correspondence Address : 1F No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka. Email Address :footy_boy86@tiptop.com Date of Birth :12.01.1986 Age : 26 years old Marital Status : Engaged Academic Qualification : UiTM B.B.A ( Hons. ) in Finance Course Attended : Business Administration, Entrepreneur Talk and Kulinary Art Skills : Well spoken and writing in Malay, English, Mandarin and Arabic Creative and Inovative thinker Risk taker Experience : 2 years as project manager at Petronas Gas Berhad Present Occupation : General Manager of JERUK MADU TIP TOP Previous Business Experience: Manage a own cafe at Mahkota Parade JERUK MADU TIP TOP ENTERPRISE 10 | P a g e
  11. 11. ADMINISTRATIVE MANAGER Name : Arif Munawir Bin Khairon Zamani I/C No : 890501-08-5533 Permanent Address : No 3, Jalan 18, Taman Sg. Petai, 78000, Alor Gajah, Melaka Correspondence Address : 1F No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka. Email Address : arifmunawir89@ tiptop.com Date of Birth :1st May 1987 Age : 25 Marital Status : Single Academic Qualification : Degree and diploma holder in Human Resources Management from UiTM Shah Alam Course Attended : Human Resource by MARA and TEKUN Skills : Goods commands in Malay, English and Mandarin, both written and spoken Experience : Minimum 3 years experience of working at Sime Darby Properties Bhd Present Occupation : Administration Manager Previous Business Experience: Human Resources Junior Manager JERUK MADU TIP TOP ENTERPRISE 11 | P a g e
  12. 12. FINANCIAL MANAGER Name : Muhamad Kamil Hadi bin Daud I/C No : 861216-12-5125 Permanent Address : No 21, Lorong 6, Taman Rembia Perdana, 87000, Alor Gajah, Malacca Correspondence Address : 1F No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka. Email Address : kamilhadi92@ tiptop.com Date of Birth : 16 december 1986 Age : 26 years old Marital Status : Engaged Academic Qualification : Diploma in Business administration and Degree in Finance from UiTM Shah Alam Course Attended : Financial training in Bank Negara Malaysia Skills : Good in Bahasa Malaysia, English, and good in computer Experience : 3 years experience in CIMB Bank Present Occupation : Finance Manager Previous Business Experience: Finance Executive. Join venture in food retail JERUK MADU TIP TOP ENTERPRISE 12 | P a g e
  13. 13. OPERATION MANAGER Name : Muhammad Hanif Bin Mohd Hambali I/C No : 850309-14-5761 Permanent Address : No 21, Lorong 8, Jalan makan orang, Taman Paya Rumput, 87000 Melaka. Correspondence Address : 1F No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka. Email address : hanif@tiptop.com Date of Birth : 09 March 1985 Age : 28 years old Marital Status : Married Academic Qualification : Bachelor in Operation Management UiTM Diploma in Business Studies (Insurance) UiTM Course Attended : Course of Operation Administrative by MARA, Entrepreneurship Course by MITI Skills : Highly expert in running the business Good in communication skill Experience : 3 years of business experience Present Occupation : Operating Manager of Jeruk Madu Tip Top Enterprise Previous Business Experience: Seller of night market Seller of fruit pickels at Pasar Tani JERUK MADU TIP TOP ENTERPRISE 13 | P a g e
  14. 14. ASSISTANT MARKETING MANAGER Name : Ahmad Fariz Petra bin Amiroz I/C No : 870227-08-5013 Permanent Address : No 5, Jalan Tembikai, Taman Paya Emas, 87000, Melaka. Correspondence Address : 1F No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka. Email Address : petra@tiptop.com Date of Birth : 27-02-1988 Age : 26 years old Marital Status : Married Academic Qualification : Bachelor In Marketing Management UiTM Diploma In Accounting UiTM Course Attended : Marketing Course by MATRADE Skills : Good in communication skills, Highly expert in promoting product. Experience : 2 years of Business Experience Present Occupation : Marketing Manager of Jeruk Madu Tip Top Enterprise Previous Business Experience: Manager Multi Level Marketing (Monavie) Promoter Broadband (Maxis) JERUK MADU TIP TOP ENTERPRISE 14 | P a g e
  15. 15. ASSISTANT OPERATION MANAGER Name : Muhammad Saffuan Ismail I/C No : 901018-12-3381 Permanent Address : No 282 Lorong 8 Taman Lendu Bakti Correspondence Address : 1F No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka. Email Address : saffuanismail@ tiptop.com Date of Birth : 18 October 1990 Age : 22 years old Marital Status : Single Academic Qualification : Diploma in Operation Management Course Attended : Entrepreneurship Course by MITI Skills : Great communication skills (English & Bahasa), Good operation planner Experience : One year experience as Junior Operating Manager in Ayamas corporation factory Present Occupation : Operating Asisstant Manager of Jeruk Madu Tip Top Enterprise Previous Business Experience : Shareholder in Grape best product JERUK MADU TIP TOP ENTERPRISE 15 | P a g e
  16. 16. MARKETING MANAGER Name :Aimi Fadhilah binti Abd Rahman I/C No :880703-01-5842 Permanent Address : No 9, Jalan Kemboja 1, Saujana Utama 2, Sg. Buloh Country Resort, Sg. Buloh, 47000 Selangor Darul Ehsan Correspondence Address : 1F No 80, Jalan Inang 3,Taman Paya Rumput Utama,76450 Bandar Cheng,Melaka. Email Address : aimirahman@ tiptop.com Date of Birth :3rd July, 1988 Age : 25 years old Marital Status : Married Academic Qualification : Bachelor in Marketing, Hons Course Attended : Marketing Course by MITI Skills : Multi language, good communication skills, IT literate Experience : 3 months of marketing advisor Present occupation : Marketing manager of Jeruk Madu Tip Top Enterprise Previous business experience: Have own drinking product which is Grape Best JERUK MADU TIP TOP ENTERPRISE 16 | P a g e
  17. 17. JERUK MADU TIP TOP ENTERPRISE 17 | P a g e
  18. 18. 2.0 ADMINISTRATION PLAN Administration is the most important thing when open up a business. It is to ensure the business run smoothly. The performance, growth and survival of the business depend on managerial skills and capabilities. The manager should have the administration function such as planning, controlling, organizing, and leading the company. The task of administration manager is to set the employee‟s salaries, protect the employee‟s welfare compensation and fringe benefits, recruiting, provide the furniture and fitting in the office to ensure the employee comfortable working environment. The administration task also including plan and set the objective or goals of the business and ensure the company achieve the goals that have been set successfully. The administration also has to arrange the organizational structure, do a working schedule, and calculate all budgets relating to administration department. Besides, the administration also responsible to ensure the partnership and the employees get the acceptable salaries like stated in the agreement and take care about employee welfare such as SOCSO, EPF, bonuses and leaves such as medical leaves, emergency leaves, maternity leaves and annual leaves. Thus, in Jeruk Madu Tip Top we see administration function as a vital task where it compresses all the elements to make sure the effectiveness in terms of performing organization activities. Our company, Jeruk Madu Tip Top, which will focus in distribution and selling of fruit pickles, see that Malaysian demand on fruit pickles are dramatically increases day by day. By looking this as business opportunity, we chose to create this company that not only focusing in domestic demand but also create new products from the fruit pickles that can give varieties of choices to the customer. JERUK MADU TIP TOP ENTERPRISE 18 | P a g e
  19. 19. 2.1 VISION To become another one of the bumiputra company that produce products and services that can fulfilled the want of the customer thus become one of the monopolist of the industry by open up more of our franchise in Malaysia. Jeruk Madu Tip Top will strive in creating an efficient and effective in terms of the operation management and becoming a multinational company in 10 years from the date it establish. 2.2 MISSION Our mission is to get more profit by supplying different kind of fruit pickles in whole Malacca area and widen our territory to all over state in south of Malaysia such as Johor, Selangor, and Negeri Sembilan. Efficient in term of handling the operation of administrative that occurs to avoid waste. Especially, when it involved with financial resources, labor, equipment and capital that we have invested. We also will alert and aware regarding the feedback from the customers. We believed that this is a medium where we can improve and upgrade the products and the services by time to time. JERUK MADU TIP TOP ENTERPRISE 19 | P a g e
  20. 20. 2.3 OBJECTIVE Our objective is to ensure the business is running smoothly according to the business plan through planning, organizing, leading and controlling from the Administration Department. From that, our business will run effective and efficient because we have a schedule to do the task, duties and responsibilities. Other than that, to ensure our business is easy to understand by the partner and workers. It is because, when Administration Department have a organizational structure, our partner and workers are easy to understand from whom they need to submit the report and foe whom they need to refer if have any problems. Lastly, is to make our business looking more attractive. It is because the Administration Department has their own allocation to purchase anything but it must relate with the Administration Department. Administration Department cannot over expense, if that happen it will lead loss to the business. By having Administration Department, it can control and manage expenses made by Administration Department. JERUK MADU TIP TOP ENTERPRISE 20 | P a g e
  21. 21. 2.4 ORGANIZATIONAL DEPARTMENT MOHD ASRUL MAMAT ARIF MUNAWIR KHAIRON ZAMANI MUHAMMAD KAMIL HADI DAUD MUHAMMAD HANIF HAMBALI MUHAMMAD SAFFUAN ISMAIL AIMI FADHILAH ABD RAHMAN AHMAD FARIZ PETRA AMIROZ JERUK MADU TIP TOP ENTERPRISE 21 | P a g e
  22. 22. 2.5 JOB DESCRIPTION POSITION JOB DESCRIPTION To form the objectives, planning strategies and monitor the organization policies and also as mastermind in an organization. To plan and monitor the strategic progress of the business To maintain good communications skill and relationship GENERAL MANAGER government, private sector, customer and also financial institution. Ensure all activities to run smoothly using the proper procedure. Able to cooperate and interact with people. To carry out interview for workers and to evaluate the workers performance. Ensure that all the business objective will be achieve. ADMINISTRATION MANAGER To plan administration system and ensure it become efficient and effective. Help the general manager manage and plan systematic management. To identify the marketing target, current market and determine the strategy which is suitable to be used. To prepared marketing analysis and observe the strategic MARKETING MANAGER location to expand the business. Doing consistent promotions ensure the sales reach the objectives. To find out the steps and effort needed to be done systematically to smoothly increase in the sales. JERUK MADU TIP TOP ENTERPRISE 22 | P a g e
  23. 23. Arrange the set of services and education that will be offer. To ensure the flow stock runs smoothly without having any OPERATION MANAGER shortage in the supply stock. To ensure the quality of product. Plan out the program that will be done Prepared cash flow, trading profit and loss account and also the balance sheet for the company. To manage all financial management. FINANCIAL MANAGER To handle the administration, operations and marketing expenses in order for the business to be financially stable. Responsible to the entire activities that involves the company finance. Loading and unloading stocks. LABOUR WORKERS Packaging products. Manage daily sales transactions. CASHIER Manage and arrange stock at premise. To deliver the product to the customer by company‟s DRIVER vehicle. JERUK MADU TIP TOP ENTERPRISE 23 | P a g e
  24. 24. 2.6 POSITION AND NUMBER OF STAFF POSITION NUMBER OF STAFF General Manager 1 Administration Manager 1 Marketing Manager 1 Marketing Assistant Manager 1 Operation Manager 1 Operation Assistant Manager 1 Financial Manager 1 Labor Worker 3 Cashier 3 Driver 1 TOTAL 14 JERUK MADU TIP TOP ENTERPRISE 24 | P a g e
  25. 25. 2.7 JOB SPECIFICATION POSITION JOB SPECIFICATION A degree and or diploma holder in business, marketing and management from UiTM or other university. Minimum 5 years experience in management position. GENERAL MANAGER Experts in planning, leading, managing and controlling. Good commands in Malay and English. Good computer knowledge and skill. Good interaction in overall level. Degree or diploma in Human Resource Management from UiTM or other university. Minimum 3 years experience of working in the ADMINISTRATION MANAGER related field. Goods commands in Malay and English, both written and spoken. Possessed good computer knowledge and skill. Degree or diploma holder in marketing. MARKETING MANAGER Minimum 3 years experience. Good commands in Malay and English. Ability to develop marketing plan and strategies. Degree or diploma holder in marketing. MARKETING ASSISTANT MANAGER Minimum 1 year experience. Good commands in Malay and English. Degree or diploma holder in operational or manufacturing management. OPERATION MANAGER Minimum 3 years experience. Good interpersonal and communication skill and able to work independently and computer literate. JERUK MADU TIP TOP ENTERPRISE 25 | P a g e
  26. 26. Degree or diploma holder in operational management. OPERATION ASSISTANT MANAGER Minimum 1 year experience. Good computer knowledge and skill. Degree or diploma in accountancy or finance. Minimum experience in accounting or financial management. FINANCIAL MANAGER High skill in cash flow management and familiar with micro office. STPM or SPM level. LABOUR WORKER Healthy body. STPM or SPM level. CASHIER Experience in public communication. Good commands in Malay and English STPM or SPM level. DRIVER Having B, D and E licenses. 3 years experience JERUK MADU TIP TOP ENTERPRISE 26 | P a g e
  27. 27. 2.8 OFFICE LAYOUT Our office located at No 80-2, Jalan Inang 3, Taman Paya Rumput Utama, 76450, Bandar Cheng, Malacca, Malaysia. The reason why we choose this place is because this area is very strategic place due to the location which is in Melaka Tengah New Golden Triangle. This new business hub will be new focus for investors and public since it has easy accessibility well connected via linked to major highways such as KL-Seremban Highway, AMJ Expressway and Ayer Keroh Expressway. Furthermore, the location of our premise is next to HSBC Banks, Home-Mart, Tesco Hypermarkets and McDonalds which already attract people at surrounding residential area. Our office is up floor of our shop which including General Manager Room, Administration Room, Marketing Manager Room, Operational Manager room and Financial Manager Room. We also do the renovation in our office to ensure our workers feel comfortable. We provide good condition in our office such as computer, table and chair, sets of sofa and artificial plant. We also bought fixture and fitting, office equipment, air-conditioner and other to ensure our business effective, efficiency and run smoothly. For the processing place, we just provide tinted glass and fan for give good air circulation. It looks simple because our operation is just to rebranding finish product and then distributes to other retailer and also sells it at our shop. The different environment between our office and others is that we provide all randomized culture environment to feel the comfort at our office and this will give our employees to feel overwhelm by working harder for our company. JERUK MADU TIP TOP ENTERPRISE 27 | P a g e
  28. 28. Toilet Marketing manager 1 & 2 room Meeting room General Manager room Administration Manager room Operation Manager 1 & 2 room Financial Manager room Stairs LEGEND Explanation table chair photocopy machine 1 set of sofa Meeting table JERUK MADU TIP TOP ENTERPRISE 28 | P a g e
  29. 29. 2.9 MANDATORY BENEFIT This benefit is very important to our business. It also compulsory gives to the partner and every staff. This benefit was stated in Employment Act 1955 (Act 265) and regulation. 2.9.1 Employees Provident Fund (EPF) EPF is compulsory to the employer provided to the every employee which stated in the Employment Act 1955 Our business will deducted 13% from the employee salary for the contribution. 2.9.2 Social Security Organization (SOCSO) This benefit is also compulsory gives to the employees. It is because SOCSO give the protection to the employees from any circumstances like accident before working hour, during working hour and after working hour. If any happen to the staff, they may claim from the employer which stated in Employment Act 1955. Our business will deducted 2% from the employee salary for the contribution. 2.9.3 Leaves This benefit also was stated in Employment Act 1955 which the employees may take leaves for any circumstances which implement by the employer. Our business provides sick leaves and annual leaves. JERUK MADU TIP TOP ENTERPRISE 29 | P a g e
  30. 30. 2.10 FRINGE BENEFIT In our business, we also provide to the partner and the staff the fringe benefit. It is to ensure our partner and staff will be protected and get the benefit. This is some fringe benefit that provided by our business such as bonus, allowance, annual leave, sick leave, emergency leave, medical leaves and maternity leaves. Bonus will give to the partner or staff if they have a good performances in their job. The increase of the salary will be provided when the business become more consistent and get the profit. For the annual leave, our business provides for workers work less than 2 years with 8 days, 2 years until 5 years is 12 days and more than 5 years is 16 days. While for the sick leave we are provides for workers work less than 2 years with 14 days, 2 years until 5 years with 18 days and more than 5 years with 22 days. For the emergency leave, we will give the permission to the staff to leave with the valid reason only such as death, sick, accident and so on. For the medical leaves any expense will burden by our business if the staff claim for that particular. The staff should provide the evident such as medical slip. Maternity leaves will be given to the female staff only. Our business provides 60 days to female staff and she will get the basic salary. The staff should apply the maternity leaves 4 month before delivery birth. For the allowance, an allowance would be paid to the workers who work more than certain number of hours in a month. The allowance paid is RM 2.00 per hour for every additional number of hours they work. JERUK MADU TIP TOP ENTERPRISE 30 | P a g e
  31. 31. 2.11 WORKING HOURS DAY Monday - Friday 8.00 am – 5.00 pm Saturday (Week 1 and 3) 2.12 TIME 8.00 am – 2.00 pm ORGANIZATIONAL STRUCTURE The organizational structure can be say as the backbone of the organizational management. Where, it showed the hierarchy of responsibilities of the organization itself. It is vital to know the hierarchy because it can show us who is responsible in each of the operation management. That includes the administration, finance, marketing and operation. It also make the activities of the organization become smooth and efficient since we have determine which person will handle which scope of responsibilities and to whom shall that particular staff report for his or her progress of work. For Jeruk Madu Tip Top, we decided to use functional organization structure. The main reasons why we choose this structure are list as below. It can clearly showed the chain of command that make the flow of work become easier since we know who in charge for a particular department. It can help the management team directly tackle the problem that arise due to factors of we have a representatives for each department that will frequently report the progress of the department. It will have the manager focus only one department. This can lead to an effective and efficient work since the manager will focus only one department. JERUK MADU TIP TOP ENTERPRISE 31 | P a g e
  32. 32. 2.13 REMUNERATION FOR ADMINISTRATIVE STAFF POSITION NO. MONTHLY EPF SOCSO AMOUNT SALARY CONTRIBUTION (2%) (RM) (RM) (13%) General Manager 1 2,500 325 50 2,875 Administration 1 1,800 234 36 2070 1 1,800 234 36 2070 1 1,800 234 36 2070 1 1,800 234 36 2070 1 1,800 234 36 2070 Financial Manager 1 1,800 234 36 2070 TOTAL 7 13,300 1,729 266 15,295 Manager Marketing Manager Marketing Assistant Manager Operation Manager Operation Assistant Manager JERUK MADU TIP TOP ENTERPRISE 32 | P a g e
  33. 33. 2.14 LIST OF OFFICE EQUIPMENT ITEM Printer 1 PRICE/PER UNIT (RM) 200 Telephone 1 95 95 Fax 1 365 365 Photocopy machine 1 3,688 3,688 Computer 1 2,500 2,500 6,848 6,848 TOTAL QUANTITY TOTAL COST (RM) 200 JERUK MADU TIP TOP ENTERPRISE 33 | P a g e
  34. 34. 2.15 LIST OF FURNITURE, FIXTURE AND FITTING NO. ITEM QUANTITY PRICE/UNIT TOTAL COST (RM) (RM) 1 Square table 6 unit 170 1020 2 Office chair 7 unit 60 420 3 Air conditioner 7 unit 2200 15400 4 Executive table + chair 1 set 500 500 5 Meeting table + 8 chair 1 set 1600 1600 6 First aid kit 1 unit 40 40 7 Multipurpose cabinet 2 unit 400 800 8 Dustbin 1 unit 25 25 9 Fire extinguisher 2 unit 130 260 10 Sofa 1 set 999 999 6,124 21,064 TOTAL JERUK MADU TIP TOP ENTERPRISE 34 | P a g e
  35. 35. 2.16 LIST OF STATIONERY ITEM QUANTITY COST PER UNIT TOTAL (RM) (RM) A4 paper 5 rim 8.50 42.50 Calculator 5 4.90 24.50 Duster 1 2.00 2.00 Eraser 5 0.20 1.00 File 10 1.50 15.00 Glue 5 1.00 5.00 Marker pen 1 2.50 2.50 Pen 10 1.20 12.00 Pencil 10 1.00 10.00 Ruler 5 0.20 1.00 Rubber stamp 5 2.00 10.00 Stamp Pad 5 7.00 35.00 Stapler 5 1.50 7.50 72 33.20 168.00 Total JERUK MADU TIP TOP ENTERPRISE 35 | P a g e
  36. 36. 2.17 PRE OPERATIONAL BUDGET ITEM RM Business license: Process RM 10 Retail shop RM 100 Processing RM 400 Lighting billboard (20m × 4m) RM 130 Dustbin RM 160 Apron RM 25 Picture RM Patil RM 10 Food handling certificate × 6 person RM 300 Injection book × 6 person RM 30 Injection × 6 person RM 180 3 1338 Business registration 60 Fire insurance 200 Stamp duties 10 TOTAL 2.18 1608 UTILITIES EXPENSES ITEM RM (for 2 months) Water deposit 100 Electricity deposit 360 Telephone deposit 220 Rental deposit 6,600 TOTAL 7,280 JERUK MADU TIP TOP ENTERPRISE 36 | P a g e
  37. 37. 2.19 JERUK MADU TIP TOP ADMINISTRATIVE BUDGET Fixed Assets Items Monthly Expenses Others Expenses (RM) Renovation and Expenses (RM) (RM) 10,000 construction Office Equipment 6,848 Furniture, fitting and 21,064 fixture Salaries 13,300 EPF 1,729 SOCSO 266 Water bill - Electricity bill - Telephone bill - Water deposit 100 Electricity deposit 360 Telephone deposit 220 Business Registration & 1608 License Rental deposit 6,600 Stationery TOTAL 168 37,912 15,295 8,888 JERUK MADU TIP TOP ENTERPRISE 37 | P a g e
  38. 38. JERUK MADU TIP TOP ENTERPRISE 38 | P a g e
  39. 39. 3.0 INTRODUCTION TO MARKETING Marketing can be defined as a process of exchange activities that takes place between a business and the customers. It also can be said as the activities that are carried out systematically to encourage and increase sales of products or services as long as the activities are in the line with religious and ethical practices. In a simple word, we can say that marketing is an activity that entrepreneurs used to promote their products in most efficient and effective ways. In order to do so, the backbone of the marketing strategies which is four P‟s are the main guideline that have been used in a good marketing strategies. Marketing also involved with details plan on identifying the market itself. Where, it is a vital thing to know exactly the market that we wish to enter so that our entering will have a good prospect in the future. Thus, lead the company to gain profit. Starting with knowing who the targets consumers are until forecasting the sales that we will own in the future, marketing plan will be needed in the process. Thus, we can conclude that practical marketing plan is highly needed to ensure that the overall of our business plans becomes smooth and easy to implement. To make a good marketing plan, there are several characteristics that we must critically analysed. The characteristics are listed below: 1. Define the product concept 2. Identify the target market 3. Determine the market size 4. Identify the competitors 5. Determine the market share 6. Developed sales forecast 7. Developed marketing strategies 8. Preparing a marketing budget JERUK MADU TIP TOP ENTERPRISE 39 | P a g e
  40. 40. 3.1 PRODUCT CONCEPT Jeruk Madu Tip Top Enterprise, is the company that focusing on the pickles production in the area of Cheng, Malacca. We will not only focusing on the domestic needs, but we also venture into others prospect in this industries. This is where we can see that this fruit pickles business can make a lot of profit due to the demand of this product in the market. Means that in a thousand of people in this country, there were 60% to 70% of them are interest in having fruit pickles for their snacks. This is based on our latest research after the questionnaires have been completed and shows that most of Malaysian love honey fruit pickles. Understanding these needs and wants of the population in Malaysia, especially in our target population which is the potential customers in that reside in the Malacca area, we decide to make a business to fulfil this demands and needs of fruit pickles. In addition, not only supplying the fruit pickles to the seller and regular customer, we also expand the business by using the selling method of custom made in order to fulfil customer‟s needs and wants. Event such as wedding, aqiqah or any other special occasion are some examples of custom made demands. This is recommended to some customers since they have their own preferences and thus, we provide those services to them. This could be as our competitive advantage to our company. In a nut shell, we have a full confident that Jeruk Madu Tip Top Enterprise have a great quality of product and we also one of the company that distribute honey fruit pickles that provide special or custom made according to our customer preferences. We can gain the market share if this business plan is done in effective and practical manner. JERUK MADU TIP TOP ENTERPRISE 40 | P a g e
  41. 41. 3.2 TARGET MARKET As a newborn in this industry, it is been too difficult for us to identify specific area as our distribution target for the purpose of distributing and marketing our fruit pickles to the market. As the target market, that is the essential part in marketing section since it is the target to distribute our sales. It is important for our company in order to make the proper marketing strategy and it will becoming more easy to manage and run our business since we have know the market and customer demands and also to make sure our effort in marketing and distributing had been successfully satisfy the customer. In ensuring our aim to gain profit in this market, our business had to focus on the effort of marketing to identify the group of customer, peoples who love pickles and care for their health. Thus, in order for us to distribute our product successfully in the market, there are several strategies we have been identified to make sure that the marketing will run smoothly. The strategies are known as market segmentation and mass marketing. Market segmentation helps our company to clarify our product based on geographic and psychographic. Mass Marketing Our company applies for a mass marketing which we are not focusing only in certain group as our target customer because our product is suitable for public which is suitable for any level of age, lifestyles, genders and personalities. Our fruit pickles are most likely to be as a snack while doing any activity. For example, customer can eat these pickles while watching television, listening to music, reading a book or comic, driving, or during any leisure time. So it is our speciality advantage to promote our product in a public event. For the commencement of our fruit pickles, we can join in an open events or small events which require a small cost. JERUK MADU TIP TOP ENTERPRISE 41 | P a g e
  42. 42. Geographic Segmentation Geographic is a part of our important segment to distribute the market of our product. It will be easy and suitable for us to take place first in Malacca states and predicted to expand to the nearest states includes Johor and Selangor. Malacca is the best place because Malacca has a high demand places for tourist to visit the historical venue and Jeruk Madu Tip Top is a local food which also will attract those tourists. This also as an opportunity for us as our product ready to be eating as a snack while travelling and visiting great places in Malacca. As for the beginning, this will easily make our company to be recognized by other citizen in Malacca and those tourists. Psychographic Segmentation Based on our survey in Malacca, nowadays people really looking for something vast, ready to eat, unique and come with several taste. For example, during leisure time, people demand to eat something that is instantly ready. In addition, for wedding ceremonies are often been requested for petite „door gift‟ for the guests. The feedback we get means also symbolises that our fruit pickles are as sweet as the couple of the bride. Thus, with all the information gathered, we could conclude that our fruit pickles are going to be highly demanded in the market based on our uniqueness and preferences of our customers. JERUK MADU TIP TOP ENTERPRISE 42 | P a g e
  43. 43. 3.3 MARKET SIZE Market size refers to the total potential purchase that is expected from the target. The potential purchase includes purchases of our competitor‟s product within the same market. Based on our estimation, the potential customer that we target consists of five groups: The calculation market size of honey pickles for each group will be calculated as following: Market Size of Basic Base Fruit Pickles Types Prices Offered For customer (retail price) 100g = RM 2.00 250g = RM 5.00 500g = RM 10.00 1Kg = RM 20.00 For seller (wholesale price) HONEY SALAK (10Kg) = RM 135 YELLOW MANGO (10Kg) = RM 125 MANGO WITH SKIN (10Kg) = RM 125 KEDONDONG (10Kg) = RM 125 SENGKUANG (10Kg) = RM 110 KELUBI (10Kg) = RM 110 GUAVA (10Kg) = RM 110 CERMAI (10Kg) = RM 110 MIXED CHERRY = RM 100 ONION (10Kg) = RM 100 JERUK MADU TIP TOP ENTERPRISE 43 | P a g e
  44. 44. For Customer Number of customer Price offered Average spend per week (RM) (RM) 105 100g = RM 2.00 130 x 2.00 x 7 days 1,820 95 250g = RM 5.00 95 x 5.00 x 7 days 3,325 70 500g = RM 10.00 70 x 10.00 x 7 days 4,900 50 1 kg = RM 20.00 50 x 20.00 x 7 days 7,000 TOTAL 17,045 Year = RM 17,045 x 48 weeks = RM 818,160 For Retailer Number of Retailer Price offered Average spend per week (RM) (RM) 10 Honey Salak (10kg) 10 x 135 x 7 days 9,450 9 Yellow Mango (10kg) 9 x 125 x 7 days 7,875 6 Mango skin 6 x 125 x 7 days 5,250 with (10kg) 9 Kendondong (10kg) 9 x 125 x 7 days 7,875 8 Sengkuang (10kg) 8 x 110 x 7 days 6,160 7 Kelubi (10kg) 7 x 110 x 7 days 5,390 9 Guava (10kg) 9 x 110 x 7 days 6,930 6 Chermai (10kg) 6 x 110 x 7 days 4,620 6 Mixed Cherry 6 x 100 x 7 days 4,620 5 Onion (10kg) 5 x 100 x 7 days 3,500 TOTAL 61,670 Year = RM 61,670 x 48 weeks = RM 2,960,160 JERUK MADU TIP TOP ENTERPRISE 44 | P a g e
  45. 45. Competitors Competitors refer to the offer similar, substitute or alternative products / services to the same target market. This is important for us to identify any others competitors‟ strength and weakness in terms of experience, the stability in the business, financial ability, target market and differentiation, etc. This is to prepare our company to be ready to compete with all the competitors and become competitive advantage in the market. We have conducted some survey on the available competitors within the scope of our business and we have identified three most close competitors to our company. Below are all our competitors for our company which is Aishah Jeruk, Jeruk Pak Latif and Nasir Jeruk. COMPETITORS STRENGTH WEAKNESS Well known Focused only certain Have regular fruit products customers. Well known only at Multiple choices. certain area in Penang Very popular in Not widely distributed Penang. Have small factory, Taste good. difficult to produce Multiple choice more. Well known Taste almost same Have regular with others customers. Focused only certain Low price. fruit products. Well known only at the bazaar in Penang. Fulfil customer desires New in the market Provide special order Have to compete with such as door gift for many competitors. special occasion Low in capital. Reasonable price JERUK MADU TIP TOP ENTERPRISE 45 | P a g e
  46. 46. 3.4 MARKET SHARE Market share refers to the predictable potential sales of the business after taking into consideration of the market size and competitor‟s influences. As a new comer in the business, we must have the nerve to venture and be brave to face with the existence competitors who are doing the similar types of business with us. Meanwhile, to determine the market share we have been resolute through the market size month and the products that have been produced by our business. Market Share before Jeruk Madu Tip Top Enterprise enter the Market Competitors Market Share Annually (RM) Aishah Jeruk Enterprise 25% 163,843.50 Jeruk Pak Latif Enterprise 50% 327,685 Nasir Jeruk Enterprise 25% 163,843.50 TOTAL 100% 655,370 25% 50% Jeruk Pak Latif Enterprise Aishah Jeruk Enterprise Nasir Jeruk Enterprise 25% JERUK MADU TIP TOP ENTERPRISE 46 | P a g e
  47. 47. Market Share after Jeruk Madu Tip Top Enterprise entered Market Competitors Market Share Annually (RM) Aishah Jeruk Enterprise 30% 196,611 Jeruk Pak Latif Enterprise 40% 262,148 Nasir Jeruk Enterprise 20% 131,074 Tip Top Enterprise 10% 65,537 TOTAL 100% 655,370 10% 20% 40% Jeruk Pak Latif Enterprise Aishah Jeruk Enterprise Nasir Jeruk Enterprise Tip Top Enterprise 30% JERUK MADU TIP TOP ENTERPRISE 47 | P a g e
  48. 48. 3.5 FORECASTED SALES Sales Forecast For Jeruk Madu Tip Top Enterprise Year 2012 Month Sales Collection (RM) January 49,360 February 50 580 March 56 350 April 55 650 May 55 850 June 54 458 July 54 320 August 70 350 September 63 285 October 48 850 November 64 733 December 70 450 Total 694 236 JERUK MADU TIP TOP ENTERPRISE 48 | P a g e
  49. 49. The Sales Forecast Sales forecasting is the process whereby the marketing manager will forecast the sales that the company earn in every month one the first year. Below are the details of the forecasting that we had make to for a year in a roll. January Since our company, Jeruk Madu Tip Top Enterprise was establishing in the last week of January, so, we are focusing on the renovation of our factory and our sales only up to RM 50,000. February In this month, we predict to gain RM 50,000. Since we just launch our promotion by distributed our promotion activities such as business card and commercial our product in the website, this activities are making people realize about our business. On this month we also plan to introduce our product at the event of “Hari Melawat Melaka, Melaka Bandaraya Bersejarah” which exhibited local fruits. There will be a lot of tourists, visitors and potential customers buying our product. March This march we predict to gain RM 56,000. After we launched an aggressive promotion, we are expecting to get a small amount of sales increase, due to the factors that the customers start to know and acknowledge the existence of our company in the market. April, May and June On these three months, we expect to gain consistent sales which are RM 55,000 in each month respectively. Within this three month the customers start to familiarize with the existence of our company and acknowledge our existence. This is a suitable situation for us to start build trust and convince the customers about the quality of our products. Thus, we will try to create a good relationship with our customers. JERUK MADU TIP TOP ENTERPRISE 49 | P a g e
  50. 50. July In July, we predict that there will be a decrease in our sales. There will be a fasting season known as Ramadan and we can conclude there will be a small demand from customers especially from Muslim. The Ramadan will end at the end of August. August In this month our profit is much better than the month of July. We predict to gain a significant increase of sales in this month. This month all the Muslim celebrates Aidilfitri festive seasons and an Independence Day, so this will came up a lot of demand especially for unique and custom order. This month we can see a lot of sales occurs due to the family gathering and the ceremony that the customers make. September In this month we predict there is a slightly decrease in the sales. This is due to the end of the festive seasons. October and November In these months, our sales were slowly increased. This is because there are many demands from the customers due to the celebration of Hari Raya Haji for Muslims and Deepavali festive seasons for Indians. We feel very fortunate to make a business in this country which consists many races which is Malay, Chinese, Indians and many else. December In the last month, we predict that the sales will slightly increase. This is due to the holiday season and Christmas where all the people will basically make events such as wedding especially on the date which every people really demand for, 12.12.12. There was a high demand unique and custom order for door gift and thanks giving ceremony. Thus, we can say that there will be an increase to the sales of our products in this month. JERUK MADU TIP TOP ENTERPRISE 50 | P a g e
  51. 51. 3.6 MARKETING STRATEGIES Product and Services Strategies Jeruk Madu Tip Top Enterprise is not only producing and supplying fruit pickles, but we can act as a pioneer in taking steps in designing and producing different kind of item based on fruit pickles. This differentiates our product from our competitors as well as to attract customer to buy our product. Our company currently focusing on the type of fruit, mixed fruits and custom made for special occasion such as door gift for wedding, etc. In the term of quality, our fruit pickles will be chosen based on the best fruits that ever been supply in the Malacca area. This is because the method and procedure at the beginning is always being our top priority. We take things seriously when it comes to the customer health and safety. Thus, in order to do that our premises will be check regularly in term of cleanliness, environmental effects, etc. Other than quality, packaging also plays and equally important role as attracting customer‟s attention and encouraging sales. Factors that we considered is ease of use and attractive to customers. Service package on the other hand has to be comprehensive and eye-catching to the target market. Pricing Strategies The price of our product is the amount charged to the customer for a particular purchase. Pricing strategies is one of the key methods to ensure the company profit. It is because the price will influence customers to buy our product. Our company pricing strategies are divided into two which are retail price and special order price. As far as we concern, we use price lining strategy. This method is usually used for retail customers. However, for custom made and sellers, we used price based on cost strategy. JERUK MADU TIP TOP ENTERPRISE 51 | P a g e
  52. 52. Place Distribution Strategy We are as a wholesaler, use the below type of distribution channel for our business activity. 1. Jeruk Madu Tip Top Enterprise 2. Jeruk Madu Tip Top Enterprise Consumer Retailer Consumer The first distribution channel is Jeruk Madu Tip Top Enterprise as a wholesaler will produce and sell our products to our consumer directly. This is where the consumer will purchase directly our product. In addition, we also deal with consumer especially for special event such wedding ceremony, festival events, etc. The second distribution channel is Jeruk Madu Tip Top Enterprise as a wholesaler will produce and sell our products to our retailer and straight to the consumer. The location for our business is strategic enough that is at Cheng, Malacca. The location is located in the part of “Melaka Tengah, New Golden Triangle” between the town and also near to the hypermarket Tesco Extra, Cheng which is one of the new business focus location in Malacca. Besides, there are a lot of parking space facilities provided nearest our place. This will help our product to be easily and reachable especially to that entire area. Therefore, we believe that the choice of this location may lead to maximum profit in the future since that Cheng is still under development. This location also has its own attraction to customer because there are a lot of places for hanging out, meeting friends and good for business purposes, etc. Promotion Strategies The existence of Jeruk Madu Tip Top Enterprise must be realized by our target market. Thus, as to increase our target market awareness, we have developed certain promotion strategies. These are the method we have used to promote our company‟s production: JERUK MADU TIP TOP ENTERPRISE 52 | P a g e
  53. 53. 1. Banner and Signboard Banner and signboard is one of the best methods to promote our fruit pickles. The reason that we choose the banner and signboard: 1. Easy to be seen by our customer because of the size and clear 2. The signboard will include company‟s logo, name, address, phone number and company‟s website 3. The signboard are placed at our boutique and office 4. Attractive design and colour will attract our customer to come and see our product Characteristics of our banner and signboard: 1. Size about 4” x 15” with stainless steel materials. 2. Sign board lighten with colourful light and easy to be seen 3. The cost of our banner and signboard is RM1,000 2. Business Card All managers in our company have their own business card. The business card is to promote our company‟s production, besides we can exchange it with our customers, relatives, friends and neighbours. The relatedness will help us promote our business as they get on contact with us. Every manager will get his or her own copies of business cards. And we spend about RM100 for 500 units of business card. JERUK MADU TIP TOP ENTERPRISE 53 | P a g e
  54. 54. 1. Company’s Facebook fan page We plan to make the hosted website where we host our website in the free hosted server. The address for our website is http://www.jmtiptop/facebook.com. We expect that our website will promote our business and inform the visitor of our website about our business and the product we provide to the website. This can ease our customer to gain any information more effectively. This is because by through our website, the customers are always updated with our latest promotion, offerings, packages, etc. JERUK MADU TIP TOP ENTERPRISE 54 | P a g e
  55. 55. 2. Newspaper Advertising We are looking for a large quantity of customer and in order to make our company to be recognized by Malaysian people outside from Malacca area. Thus, we have take some steps in promoting our product in newspaper, Harakah : 1. RM 1,200 per publish (usually Harakah publish once a week) 2. The size is quarter or ¼ of page of the newspaper. We take our own risk in the mission to gain more profit, to be recognized and able to compete with ours competitors. 3.7 GANTT CHART Month Activities 1 7 8 9 10 11 12 Custom made orderings 7 6 Visit promotion 6 5 Briefing for all distribution channel 5 4 Departmental research 4 3 Advertising and promotion launched 3 2 On the job training personnel 2 1 Identify problem and take corrective action 8 Consolidation among department JERUK MADU TIP TOP ENTERPRISE 55 | P a g e
  56. 56. 3.8 MARKETING BUDGET Items Monthly Expenses Others Expenses (RM) Signboard Fixed assets Expenses (RM) (RM) 1,000 Marketing personnel - Salary - 5,600 EPF/ SOCSO 840 Delivering 1,000 Promotion - Banner 200 - Business card 100 - Website 200 - Newspaper 1,200 advertising Total 1,000 7,440 1,700 JERUK MADU TIP TOP ENTERPRISE 56 | P a g e
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  58. 58. 4.0 OPERATION PLAN INTRODUCTION In any business that we want to set up, an operation objective is important element that should be add on in order to ensure that the business will be run smoothly and accordingly. The successful of the business is depending on how the effective of the operation in the business itself. The smoothly and a well condition of operation can lead the business achieved the goal easily without face any difficulties that hinder the success of the business. Therefore, the objective operation should be set up in order to serve as a guideline for the business in achieving their goal. The main objective for the TIP TOP ENTERPRISE is to give a best quality of our product, which are many different types and taste of fruit pickles to our customer in order to make them more satisfied with these products. We also try to fulfill our customer requirements and needs and also to change the perspectives of our customer about the healthiness of fruit pickles where we enriched it with honey and using a healthy preservative such as apple cider. 4.1 OPERATION OBJECTIVES 1. To make sure that all the operation activities will be run properly and effectively by the workers who are responsible for it and able to achieved the business goal. 2. To ensure that all the products that provided to our customer follow the requirements and needs in order to make them satisfy with our product. 3. To make sure that our product is nutritious, clean, Halal and always available to the customer. 4. To make sure that the stocks is being managed properly. 5. To ensure all the workers can perform their job effectively. 6. To maximize the sustainable profit growth and minimize the lost. 7. To make our company grow faster in order to be more competitive in the business. 8. To be more creative and innovative in order to attract customers. 9. To be aware with new business opportunity that is based on our product 10. To make sure the performance of our business operation will be successful. Apart from all the objectives, the main priorities of TIP TOP ENTERPRISE is to ensure that all the operation activities run effectively and systematically based our business plan. Hence in order to achieve our objectives, our management aggressively promotes responsible, JERUK MADU TIP TOP ENTERPRISE 58 | P a g e
  59. 59. ethical, proactive, responsive toward the customer needs and requirements for their satisfaction. 4.2 OPERATION DEPARTMENT STRATEGIES As the world keep on changing and globalization in the Malaysian industry field, we TIP TOP ENTERPRISE are ready to take up the challenge. One of our strategies is through our operation plan itself. Where this particular plan is vital as others plan that we has discussed early. The operation plan itself discusses on how exactly the basic operation will occurs. In the operation department, all the inputs are merging to produce are merging to produce the output. In simple word, we at TIP TOP ENTERPRISE will efficiently combine the work force, stock available, equipment and apparatus, technologies, information and capital to meet the demand of our customers and the same time gain the profit that we had estimated. In order to do so, we had made several strategies in making sure that the objectives of our operation plan are well achieved. The strategies are listed below: TIP TOP ENTERPRISE will make sure that the staff that we hire fulfill the requirement of the particular position. This merely due to avoid excessive staff in the operation department. TIP TOP ENTERPRISE will ensure that our stock is always for the customer TIP TOP ENTERPRISE make sure that all the barrel that we received from “Jeruk Madu Pak Ali” is properly concealed, clean and in good condition (Extra precaution) TIP TOP ENTERPRISE will take note on all the feedback that came from of our customer. We believed that the critics that they give to us would improve the level efficiency in the operation department. TIP TOP ENTERPRISE will always find new initiatives and business plan that can increase our opportunity for success. In the term of management, we will set up clear objectives and goals to achieve in this industry. A clear goal and objectives will derive our staff to perform well .in their own job task thus lead to a smooth and efficient of the business. JERUK MADU TIP TOP ENTERPRISE 59 | P a g e
  60. 60. 4.3 CONCEPT OF OPERATION As a new comer for the business that distributes a variety of fruit pickles, our company come with the new concept that will show the uniqueness of our company that provide variety method of selling our product. It is important to make sure that our customer can easily recognize and interested with us. Due to that, our company, which is JERUK MADU TIP TOP ENTERPRISE, always does the job based on the concept of “CUSTOMER IS OUR MAIN PRIORITY”. By applying this concept, our company tries to make sure that all the requirements and needs of the customer must be fulfilled first. It is vital to ensure that our customer satisfied and become a loyal customer for our product. In our business, we offer a various type of fruit pickles and also provide special order in order to attract the customer to buy our product. By putting the customer as our main priority, we will do our job effectively so that we can reduce any complaint by the customer, however, if has any complaint, we will solve it immediately and take corrective action to curb that problem. 4.3 PRICES OF OUR PRODUCTS in JERUK MADU TIP TOP, we will try our best to distribute the most quality and best honey fruit pickles. Instead of that, we also will give our customers a reasonable price and ensure that the customers are satisfied with our fruit pickles that we distribute. To know about the price that we offer to the customer regarding our product, we show the price according to the types of buyer and fruit pickles that we provided. JERUK MADU TIP TOP ENTERPRISE 60 | P a g e
  61. 61. Types Prices offered by JERUK MADU TIP TOP ENTERPRISE For end customer (retail 100g = RM 2.00 price) 250g = RM 5.00 500g = RM 10.00 1Kg = RM 20.00 For seller (wholesale price) HONEY SALAK (10Kg) = RM 135 YELLOW MANGO (10Kg) = RM 125 MANGO WITH SKIN (10Kg) = RM 125 KEDONDONG (10Kg) = RM 125 SENGKUANG (10Kg) = RM 110 KELUBI (10Kg) = RM 110 GUAVA (10Kg) = RM 110 CERMAI (10Kg) = RM 110 MIXED CHERRY = RM 100 ONION (10Kg) = RM 100 4.5 OPERATION HOUR Jeruk Madu Tip Top Enterprise operates 7 days per week and we practice a shift hour for our worker. Our company does not have off day due to the demand from the customer that chocolate would be everyday needs. When the demand comes, our company will fulfill their request in order to guaranteed satisfaction of our customer. JERUK MADU TIP TOP ENTERPRISE 61 | P a g e
  62. 62. Jeruk Madu Tip Top Enterprise will be close just driving the public holiday such as Labor day but will not be closed during Hari Raya and any big festival seasons in Malaysia. This is due to the higher demand from the customer for our product. The operation hour of our boutique:- DAY Sunday – Thursday 10.30 am – 10.30 pm Friday – Saturday 4.6 TIME 10.30 am – 11.00 pm REST HOUR The rest hour for our company is state 12.30 pm until 1.30 pm for the first shift and the rest hour for the next shift is 8.30 pm until 9.30 pm. For Friday, there are extra 30 minutes for the workers to perform a Jumaat prayer and the rest day for Saturday is at 1.00pm until 2.00 pm for the first shift and the next shift is 9.00 pm – 10.00 pm. The reasons why there were just 1 hour rest for the worker is that business need to be operate continuously to fulfill the demand of the customer and be more effective in making more profit to the company. 4.7 MANPOWER AND LABOR In Jeruk Madu Tip Top Enterprise, we have seven workers under operation department, 3 workers for managing and preparing the stocks and 3 workers taking order and managing the front cashier counter and also plus one lorry driver for delivering the product from supplier and also to our sellers. This 7 staff have been chosen based on the criteria that our company has decided. All seven workers plays a very important role in ensure that our JERUK MADU TIP TOP ENTERPRISE 62 | P a g e
  63. 63. business running smoothly. These seven workers are responsible in ensuring the process of managing and distributing the stocks was on the time and the delivery of the fruit pickles is perfect and any delay must be avoid by the workers. They are also having the responsibilities in cleanliness in order to avoid any damages to the employees due to use of apparatus and equipments in managing the fruit pickles. They must ensure that the apparatus and equipments are in good condition and safe to be use. Our workers are totally have been supervised and trained in order to manage the stocks properly and based on the guidelines as to maintain our quality of product. This will help our worker to work effectively and can handle the stocks efficiently in order to fulfill the demand of the customer. 4.8 OPERATION LAYOUT Store Entry Cashier Kiosk Legend: 1.Upright Freezer 4.Rack 2. Sink 3. Long Table 5. Dustbin 6. Extinguisher JERUK MADU TIP TOP ENTERPRISE 63 | P a g e
  64. 64. 4.9 OPERATIONAL DEPARTMENT CHART Operation Manager (Muhammad Hanif Hambali) Assistant Manager (Muhammad Saffuan Ismail) Cashiers Workers Driver JERUK MADU TIP TOP ENTERPRISE 64 | P a g e
  65. 65. 4.10 MANPOWER REQUIREMENT DESIGNATION NO. OF SALARY EPF (10%) SOCSO (2%) WORKER (RM) (RM) Cashiers 3 900 x 3 = 2,700 2,700 x 13% = 351 2,700 x 2% = 54 Workers 3 900 x 3 = 2,700 2,700 x 13% = 351 2,700 x 2% = 54 Driver 1 900 x 1 = 900 900 x 13% = 117 TOTAL 7 6,300 819 126 Cashiers 3 2,700 x 12 = 32,400 351 x 12 = 4,212 54 x 12 = 648 Workers 3 2,700 x 12 = 32,400 351 x 12 = 4,212 54 x 12 = 648 Driver 1 900 x 12 = 10,800 117 x 12 = 1,404 18 x 12 = 216 TOTAL 7 75,600 9,828 1,512 MONTHLY 900 x 2% = 18 YEARLY For Overtime payment RM 3.75 x 1.5 = RM 5.63 per hour *basic payment for 1 hour RM 3.75 *overtime payment for 1 hour is RM 5.63 JERUK MADU TIP TOP ENTERPRISE 65 | P a g e
  66. 66. 4.11 PRODUCTION SCHEDULE TIME SHIFTS WORKERS Cashier Workers Driver 10.30 – 11.30 1 1 1 11.30 – 12.30 1 1 1 12.30 – 13.30 2 2 1 2 2 1 14.30 – 15.30 3 3 1 15.30 – 16.30 3 3 1 16.30 – 17.30 3 3 1 17.30 – 18.30 3 3 1 18.30 – 19.30 2 2 1 19.30 – 20.30 2 2 1 20.30 – 21.30 1 1 1 21.30 – 22.30 1 1 1 13.30 – 14.30 1 2 3 JERUK MADU TIP TOP ENTERPRISE 66 | P a g e
  67. 67. 4.12 STOCK REQUIREMENT TYPES COST PER UNIT (10Kg) Honey salak RM 125 Mangga Kuning RM 80 Mangga Kulit RM 80 Kedondong RM 80 Sengkuang RM 65 Guava RM 80 Cermai RM 65 Cherry RM 80 Onion RM 95 Kelubi RM 95 JERUK MADU TIP TOP ENTERPRISE 67 | P a g e
  68. 68. STOCK PURCHASES (RM) MONTH Honey Mangga Mangga salak kuning kulit 1,875 1,200 1,200 1,040 640 1,920 1,350 1,350 1,150 760 1,920 1,375 1,350 1,175 760 1,820 1,350 1,275 1,080 740 1,780 1,210 1,250 1,098 665 1,875 1,265 1,265 1,165 700 1,850 1,195 1,350 1,150 640 3,750 2,400 2,400 2,000 1,200 1,920 1,459 1,270 1,450 1,190 1,500 1,000 990 990 590 2,500 2,000 2,000 1,900 1,000 2,400 1,700 2,350 2,290 1,550 25,170 17,504 18,050 16,488 10,435 Kedondong Sengkuang January February March April May June July August September October November December TOTAL JERUK MADU TIP TOP ENTERPRISE 68 | P a g e
  69. 69. STOCK PURCHASES (RM) TOTAL MONTH Guava Cermai Cherry Onion Kelubi (RM) 640 325 640 475 950 8,985 770 460 745 560 875 9,940 775 445 725 565 945 9,975 770 375 695 520 980 9,605 645 325 655 475 1,120 9,223 745 405 685 500 985 9,590 660 325 630 450 965 9,215 1,200 650 1,200 950 2,200 17,953 950 550 965 750 1,850 12,354 600 265 600 450 975 7,960 1,100 690 950 950 2,200 15,290 1,500 990 1,350 1,250 2,250 17,630 10,355 5,805 9,840 7,895 16,295 137,720 January February March April May June July August September October November December TOTAL JERUK MADU TIP TOP ENTERPRISE 69 | P a g e
  70. 70. 4.13 CONVENTIONAL SYMBOL SYMBOL ACTIVITY DECRIPTION Operation Material are being processed or information being or the process of planning and calculating Transporting Movement of material from one place to another Inspection Inspection on the quantity or quality of the product Delay Processed is delay or material waiting for further processed Storage Process of the materials or finished products is stored in the storage area JERUK MADU TIP TOP ENTERPRISE 70 | P a g e
  71. 71. 4.14 FLOW CHART OF PACKAGING OR STOCK PROCESS OPERATION Receive the stocks from the supplier (Jeruk Madu Pak Ali) Inspect the quality of the stocks that been received from supplier Packaging the stocks according to sizes and types Custom packaging for customer (Special Order) The extra pickles is store in the storage compartment All the sale data of the product is being recorded JERUK MADU TIP TOP ENTERPRISE 71 | P a g e
  72. 72. 2.15 EXPLANATION OF PROCESS FLOWCHART Receiving stocks: The stocks been received from supplier, Jeruk Madu Pak Ali, according to how many stocks that we ordered. Quality Inspection: Process to inspect the quality of the barrel if there any leakage and make sure that the product quality is in good condition such as the colours or defective. The product that is in good condition is accepted and put in the store while if the product does not meet the requirement is sent back to the supplier. Weighing: The product is weight and put into a sterile plastic bag according to certain weight (100g,250g,500g and 1kg) Sealing: The product that is weight and keeps in a sterile plastic is sealed by sealer. Packaging: The product is pack according to the demand of the customer and order of the customer. If there is any excess is kept in the storage. Custom packaging (special order): Some customers demand for special order such as goodies for special occasion and else. This process of packaging is depends on customer‟s demand. Storage: The other rest of the stock will be stored in storage compartment Recorded: all the sale data is recorded JERUK MADU TIP TOP ENTERPRISE 72 | P a g e
  73. 73. 4.16 EQUIPMENT AND APPARATUS: The material management is important in our packaging process as its need to be clean and sterile at any time. The entrepreneur should plan and control the quality of packaging effectively and efficiently. Item Price / unit No. (RM) Total cost requirement Weight Machine Supplier Jong 150 2 300 Hong Enterprise (for retail use) Weight Machine Jong 100 3 300 Sealer Enterprise Jong 55 3 165 Strainer Hong Hong Enterprise Kedai Runcit 5 15 75 Kamal Sdn Bhd Basin Kedai Runcit 3 10 30 Kamal Sdn Bhd JERUK MADU TIP TOP ENTERPRISE 73 | P a g e
  74. 74. Container 35 15 525 Bima Sakti Enterprise Others 7,650 7,650 Total 4.17 9,045 OTHER EXPENSES No. Items Quantity Price/unit Total (RM) (RM) 1 First Aid 1 40 40 2 Fire Extinguisher 2 130 260 3 Uniform 6 25 150 4 Packaging 50Kg Small size = 9 585 (small = 20Kg, per Kg Medium = 15Kg Medium size = Large = 15Kg) 12 per Kg Large = 15 per Kg 5 Plastic bags 50Kg 4 per Kg 200 6 Glove 4 10 40 7 Insurance Lorry 1,000 8 Road Tax 500 9 Lorry Inspection 60 Total 2,835 JERUK MADU TIP TOP ENTERPRISE 74 | P a g e
  75. 75. 4.18 LIST OF EQUIPMENT Item Price/unit No. Total RM Requirement Supplier Cost RM Sink 225 2 450 Deluxe Sdn Bhd Upright 1200 1 1200 Freezer Rakan niaga Corp Rack 420 4 1,680 IKEA Stainless 1,200 1 1,200 Stanley sdn steel table Dustbin bhd 25 3 75 Kedai runcit Bilah enterprise Cash Register 1,000 1 1,000 Stationeries is ours enterprise JERUK MADU TIP TOP ENTERPRISE 75 | P a g e
  76. 76. Long Table Hong leong 90 2 180 hardware sdn bhd Small Square Jati 120 1 120 Table Others Total sungguh sdn bhd 2,835 8,740 JERUK MADU TIP TOP ENTERPRISE 76 | P a g e
  77. 77. 4.19 OPERATIONAL BUDGET FIXED ASSET ITEMS OTHER EXPENSES EXPENSES EXPENSES (RM) NO. MONTHLY (RM) (RM) 1 Equipment 8,740 2 Apparatus 9,045 3 Lorry 85,000 4 Labour wages 6,300 5 EPF 819 6 SOCSO 126 7 Stocks 8,985 8 First aid 40 9 Fire extinguisher 260 10 Uniform 150 11 Packaging 585 12 Plastic bags 200 13 Glove 40 14 Insurance lorry 1,000 15 Road tax 500 16 Lorry inspection 60 TOTAL 102,785 16,230 2835 JERUK MADU TIP TOP ENTERPRISE 77 | P a g e
  78. 78. FINANCIAL PLAN JERUK MADU TIP TOP ENTERPRISE 78 | P a g e
  79. 79. INTRODUCTION A financial plan incorporates all financial data derived from the operating budgets i.e. the marketing, production (or operations) and administration budgets. Financial information from the operating budgets is then translated or transformed into a financial budget. Based on the financial data, projections are prepared via the following pro forma statements:  Cash flow  Income (or profit and loss) statement  Balance sheet. THE IMPORTANCE OF A FINANCIAL PLAN A financial plan is crucial to the overall business plan that is developed for a particular business or project. Its importance can be summarized as follows:  To determine the size of investment  To identify and propose the relevant sources of finance  To ensure that the initial capital is sufficient  To analyze the viability of the project before actual investment is committed  To be used as a guideline for project implementation VISION OF FINANCIAL PLAN   To utilize every resource those owned by the organization and lead to increase of our company profit. To check in every single transaction inflows and outflows of the financial resources that being made within the financial year and to prevent and detect any corruption and misused of money and can lead to decrease in our profit. MISSION OF FINANCIAL PLAN   The flow of work is well managed and reduce error in every single transaction. To equally distribute the financial resource to each department. JERUK MADU TIP TOP ENTERPRISE 79 | P a g e
  80. 80. FINANCIAL INPUT Administrative Budget. ADMINISTRATIVE EXPENDITURE Fixed Assets Land & Building Office Equipment Renovation Furniture & Fixture RM 6,848 10,000 21,064 Working Capital Salary EPF & SOCSO 13,300 1,995 Rental Deposit Stationary 6,600 168 Other Expenditure Other Expenditure Pre-Operations Expenditure Deposit (rent, utilities, etc.) Business Registration & Licenses Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL 680 1,408 200 62,263 Useful life of fixed assets. FIXED ASSETS Office Equipment Renovation Furniture & Fixture Signboard Vehicle Equipment & Apparatus Econ. Life (yrs) 5 5 5 5 5 5 DEPRECIATION METHOD (1=straight line, 2=declining balance) 1 JERUK MADU TIP TOP ENTERPRISE 80 | P a g e
  81. 81. Marketing Budget MARKETING EXPENDITURE Fixed Assets RM Signboard 1,000 Working Capital Salary EPF & SOCSO Delivering 5,600 840 1,000 Other Expenditure Other Expenditure Pre-Operations Expenditure Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL 1,700 10,140 Forecasted Sales & Purchases. SALES PROJECTION Month 1 49,360 Month 2 50,580 Month 3 56,350 Month 4 55,650 Month 5 55,850 Month 6 54,458 Month 7 54,320 Month 8 70,350 Month 9 63,285 Month 10 48,850 Month 11 64,733 Month 12 70,450 Total Year 1 694,236 ToTal Year 2 728,948 Total Year 3 794,553 PURCHASE PROJECTION Month 1 8,985 Month 2 9,940 Month 3 9,975 Month 4 9,605 Month 5 9,223 Month 6 9,590 Month 7 9,215 Month 8 17,953 Month 9 12,354 Month 10 7,960 Month 11 15,290 Month 12 17,630 Total Year 1 137,720 ToTal Year 2 144,606 Total Year 3 157,621 JERUK MADU TIP TOP ENTERPRISE 81 | P a g e
  82. 82. Operation Budget. OPERATIONS EXPENDITURE Fixed Assets RM Vehicle Equipment & Apparatus 85,000 17,785 Working Capital Raw Materials & Packaging Carriage Inward & Duty Salaries, EPF & SOCSO Other Expenditure Other Expenditure Pre-Operations Expenditure Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Expenditure TOTAL 8,985 7,245 1,500 1,335 121,850 JERUK MADU TIP TOP ENTERPRISE 82 | P a g e
  83. 83. PROJECT IMPLEMENTATION COST SCHEDULE A project implementation cost schedule incorporates both long-term and short-term expenditure needed to start a project. The purpose of preparing the cost schedule is to determine the amount of initial investment needed to launch our new project. Project Implementation Cost Requirements Cost Fixed Assets Land & Building Office Equipment Renovation Furniture & Fixture 6,848 10,000 21,064 Signboard 1,000 Vehicle Equipment & Apparatus Working Capital 85,000 17,785 1 months Administrative Marketing Operations Pre-Operations & Other Expenditure Contingencies 10% TOTAL 22,063 7,440 16,230 6,823 19,425 213,678 JERUK MADU TIP TOP ENTERPRISE 83 | P a g e
  84. 84. DEPRECIATION SCHEDULES Our company is planning to purchase fixed assets either with cast or through hire purchase scheme. Therefore, depreciation schedules for each of the fixed assets (except land) either bought or contributed have to be prepared. Our method to calculate the annual depreciation charges is the straight-line method. Annual depreciation = Original cost of asset – Scrap value Asset’s Economic Life Annual depreciation (Vehicle) = RM85,000 – RM0 5 years = RM17, 000 Fixed Asset Cost (RM) Method Economic Life (yrs) Year Vehicle 85,000 Straight Line 5 Annual Depreciation Accumulated Depreciation Book Value - - 85,000 1 17,000 17,000 68,000 2 17,000 34,000 51,000 3 17,000 51,000 34,000 4 17,000 68,000 17,000 5 17,000 85,000 - 6 0 0 - 7 0 0 - 8 0 0 - 9 0 0 - 10 0 0 - JERUK MADU TIP TOP ENTERPRISE 84 | P a g e
  85. 85. Fixed Asset Cost (RM) Method Economic Life (yrs) Year Annual Depreciation Fixed Asset Cost (RM) Method Economic Life (yrs) Office Equipment 6,848 Straight Line 5 Accumulated Depreciation Book Value Year - - 6,848 1 1,370 1,370 5,478 2 1,370 2,739 3 1,370 4 Annual Depreciation Renovation 10,000 Straight Line 5 Accumulated Depreciation Book Value - - 10,000 1 2,000 2,000 8,000 4,109 2 2,000 4,000 6,000 4,109 2,739 3 2,000 6,000 4,000 1,370 5,478 1,370 4 2,000 8,000 2,000 5 1,370 6,848 - 5 2,000 10,000 - 6 0 0 - 6 0 0 - 7 0 0 - 7 0 0 - 8 0 0 - 8 0 0 - 9 0 0 - 9 0 0 - 10 0 0 - 10 0 0 - Fixed Asset Cost (RM) Method Economic Life (yrs) Year 1 2 3 4 5 6 7 8 9 10 Annual Depreciation 4,213 4,213 4,213 4,213 4,213 0 0 0 0 0 Furniture & Fixture 21,064 Straight Line 5 Accumulated Depreciation 4,213 8,426 12,638 16,851 21,064 0 0 0 0 0 Book Value 21,064 16,851 12,638 8,426 4,213 - JERUK MADU TIP TOP ENTERPRISE 85 | P a g e
  86. 86. Fixed Asset Cost (RM) Method Economic Life (yrs) Year 1 2 3 4 5 6 7 8 9 10 Signboard 1,000 Straight Line 5 Annual Depreciation Accumulated Depreciation 200 200 200 200 200 0 0 0 0 0 Fixed Asset Cost (RM) Method Economic Life (yrs) Year 1 2 3 4 5 6 7 8 9 10 Book Value 200 400 600 800 1,000 0 0 0 0 0 1,000 800 600 400 200 - Equipment & Apparatus 17,785 Straight Line 5 Annual Depreciation 3,557 3,557 3,557 3,557 3,557 0 0 0 0 0 Accumulated Depreciation 3,557 7,114 10,671 14,228 17,785 0 0 0 0 0 Book Value 17,785 14,228 10,671 7,114 3,557 - JERUK MADU TIP TOP ENTERPRISE 86 | P a g e
  87. 87. SOURCES OF FINANCE SCHEDULE Our source of finance schedule is made of the following common components:  Internal sources - Equity contributions (cash)  External sources - Term loan Requirements Loan Hire-Purchase Own Contribution Fixed Assets Cash Land & Building Office Equipment Renovation Furniture & Fixture Existing F. Assets 6,848 5,000 21,064 5,000 Signboard 1,000 Vehicle Equipment & Apparatus 85,000 17,785 months Working Capital 1 Administrative Marketing Operations Pre-Operations & Other Expenditure Contingencies 10% 19,425 TOTAL 24,425 22,063 7,440 16,230 6,823 104,253 85,000 LOAN (if required) Interest rate Loan duration 5% 5 JERUK MADU TIP TOP ENTERPRISE 87 | P a g e
  88. 88. Amortisation schedule (term loan) LOAN REPAYMENT SCHEDULE 24,425 5% 5 Annual Rest Amount Interest Rate Duration (yrs) Method Year 1 2 3 4 5 6 7 8 9 10 Principal 4,885 4,885 4,885 4,885 4,885 0 0 0 0 0 Interest Total Payment 1,221 977 733 489 244 0 0 0 0 0 6,106 5,862 5,618 5,374 5,129 - Principal Balance 24,425 19,540 14,655 9,770 4,885 - JERUK MADU TIP TOP ENTERPRISE 88 | P a g e
  89. 89. JERUK MADU TIP TOP ENTERPRISE 89 | P a g e
  90. 90. GOOD PRODUCTION COST Year 1 Raw Materials Opening Stock Current Year Purchases Ending Stock Raw Materials Used Carriage Inwards Year 2 Year 3 Total Factory Overhead Production Cost 144,606 157,621 137,720 144,606 157,621 137,720 86,940 144,606 86,940 157,621 86,940 20,557 20,557 20,557 20,557 245,217 20,557 252,103 20,557 265,118 Year 1 694,236 Year 2 728,948 Year 3 794,553 245,217 6,545 252,103 6,040 265,118 6,545 6,040 5,855 0 238,672 Salaries, EPF & SOCSO Factory Overhead Depreciation of Fixed assets (Operations) 0 137,720 0 252,608 0 265,303 455,564 476,340 529,250 264,756 264,756 264,756 89,280 89,280 89,280 1,500 1,500 PRO FORMA INCOME STATEMENT (ANNUALLY) Sales Less: Cost of Sales Opening Stock of Finished Goods Production Cost less: Ending Stock of Finished Goods Gross Profit Less: Expenditure Administrative Expenditure Marketing Expenditure Other Expenditure Business Registration & Licences 1,408 Insurance & Road Tax for Motor Vehicle 1,500 Other Pre-Operations Expenditure 3,235 Interest on Hire-Purchase Interest on Loan 1,221 977 733 Depreciation of Fixed Assets 7,782 7,782 7,782 369,183 364,295 364,051 Net Profit Before Tax 86,381 112,045 165,199 Tax Net Profit After Tax Accumulated Net Profit 0 86,381 86,381 0 112,045 198,426 0 165,199 363,625 Total Expenditure JERUK MADU TIP TOP ENTERPRISE 90 | P a g e
  91. 91. PRO FORMA BALANCE SHEET Year 1 Year 2 Year 3 ASSETS Fixed Assets (Book Value) Land & Building Office Equipment Renovation Furniture & Fixture Other Assets Deposit TOTAL ASSETS Owners' Equity Capital Accumulated Profit Long Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities Accounts Payable TOTAL EQUITY & LIABILITIES 800 600 400 68,000 14,228 51,000 10,671 34,000 7,114 85,018 56,679 6,545 6,040 5,855 179,881 317,951 510,693 323,991 516,548 680 680 680 300,464 409,689 573,907 189,253 86,381 275,634 189,253 198,426 387,679 189,253 363,625 552,878 19,540 14,655 9,770 19,540 Current Assets Stock of Raw Materials Stock of Finished Goods Accounts Receivable Cash Balance 2,739 4,000 8,426 186,426 Vehicle Equipment & Apparatus 4,109 6,000 12,638 113,358 Signboard 5,478 8,000 16,851 14,655 9,770 5,289 7,355 11,259 300,464 409,689 573,907 JERUK MADU TIP TOP ENTERPRISE 91 | P a g e
  92. 92. FINANCIAL RATIO ANALYSIS (YEAR 1 CALCULATION) i) Current ratio = Current assets Current liabilities = 186,426 5,289 = 35.25 times The current ratio above indicates that the company has 35.25 times the current assets that it needs to cover the current liabilities. JERUK MADU TIP TOP ENTERPRISE 92 | P a g e
  93. 93. ii) Quick ratio = Current assets – stocks Current liabilities = 186,426 – 6,545 5,289 = 34.01 times The quick ratio of 34.01:1 indicates that the company has more than 34.01 times the current assets to cover the current liabilities. JERUK MADU TIP TOP ENTERPRISE 93 | P a g e
  94. 94. iii) Return on investment = Net profit Total assets = 86,381 299,784 = 28.81% @ 29% Return on investment of 29% indicates that for every RM 1.00 invested the company earns cent in return. JERUK MADU TIP TOP ENTERPRISE 94 | P a g e
  95. 95. iv) Return on Equity = Net Profit Equity = 86,381 275,634 = 31.34% @ 31% Return on equity of 31 percent indicates that for each RM 1.00 invested, the owner earns 31 cent in return. JERUK MADU TIP TOP ENTERPRISE 95 | P a g e
  96. 96. v) Debt to Equity = Long Term Liabilities Owners Equity = 19,540 275,634 = 0.07 times @ 0.1 times The company has a debt-to-equity of ratio of 0.1. This ratio means that for every RM 1.00 invested by the owner, the company has RM0.1 debt financing. JERUK MADU TIP TOP ENTERPRISE 96 | P a g e
  97. 97. vi) Return on sales = Net profit Sales = 86,381 694,236 = 12.44% @ 12% It indicates that 12 percent represent that for each RM 1.00 of sales revenues generated; company earns 12 cent net profit. JERUK MADU TIP TOP ENTERPRISE 97 | P a g e
  98. 98. JERUK MADU TIP TOP ENTERPRISE 98 | P a g e
  99. 99. FORECASTED PERFORMANCE Year 1 Year 2 Year 3 PROFITABILITY Sales Gross Profit Profit Before Tax Profit After Tax Accumulated Profit 694,236 455,564 86,381 86,381 86,381 728,948 476,340 112,045 112,045 198,426 794,553 529,250 165,199 165,199 363,625 LIQUIDITY Total Cash Inflow Total Cash Outflow Surplus (Deficit) Accumulated Cash 822,914 643,033 179,881 179,881 728,948 590,878 138,070 317,951 794,553 601,810 192,743 510,693 SAFETY Owners' Equity Fixed Assets Current Assets Long Term Liabilities Current Liabilities 275,634 113,358 186,426 19,540 5,289 387,679 85,018 323,991 14,655 7,355 552,878 56,679 516,548 9,770 11,259 12% 31% 29% 15% 29% 27% 21% 30% 29% 35.2 34.0 44.1 43.2 45.9 45.4 0.1 0.1 0.0 77% 555,629 70% FINANCIAL RATIOS Profitability Return on Sales Return on Equity Return on Investment Liquidity Current Ratio Quick Ratio (Acid Test) Safety Debt to Equity Ratio BREAK-EVEN ANALYSIS Break-Even Point (Sales) Break-Even Point (%) 576,203 564,005 83% JERUK MADU TIP TOP ENTERPRISE 99 | P a g e
  100. 100. APPENDIX Newspaper advertising Banner JERUK MADU TIP TOP ENTERPRISE 100 | P a g e
  101. 101. Signboard JERUK MADU TIP TOP ENTERPRISE 101 | P a g e
  102. 102. Business Card JERUK MADU TIP TOP ENTERPRISE 102 | P a g e
  103. 103. JERUK MADU TIP TOP ENTERPRISE 103 | P a g e

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