1. Faculty of Civil Engineering
81310 UTM Johor Bahru, Johor
MALAYSIA
UHAS 3012: Entrepreneurship & Enterprise Development (Seksyen 2)
NEW VENTURE ANALYSIS
“Interlocking Bricks System”
Academic Session 2015/2016
Semester 1
Company Name
Green Interlocking Brick & Construction (GIBC)
Group Members
1. Noh Irwan Bin Ahmad (A12KA0102)
2. Mohamad Saiful Bin Mohamad Khir (A12KA0215)
3. Mohamad FaizFarhan Bin Mohd Uzir (A12KA0051)
4. Aeus Asfaer Bin Kartubi (A12KA0001)
5. Muhammad Abu Khair Bin Ziatol Ihazair (A12KA0077)
Prepared for
Encik Md Mohar Muhammad
Date of Submission
21 Disember 2015
2. CONTENTS
TITLE PAGE
1.0 COMPANY OVERVIEW 1
2.0 PRODUCT/SERVICE DESCRIPTION 1
3.0 INDUSTRY AND MARKETPLACE ANALYSIS 1
4.0 MARKETING STRATEGY 2
5.0 DISTRIBUTION AND SALES STRATEGY 2
6.0 OPERATIONAL AND DEVELOPMENT PLAN 2
7.0 FINANCIAL ESTIMATES 2
3. NEW VENTURE ANALYSIS
1.0 COMPANY OVERVIEW
Green Interlocking Brick & Construction is the name of our company. The company has been founded in
March 1, 2012 as the contractors classes G3 and works construction projects using interlocking bricks. This type
of business is a partnership in which five people involved in this company. Our strategy is to become a main
manufacturer and major supplier of interlocking brick to all construction companies in Peninsular Malaysia
(Kedah, Penang, Malacca, Negeri Sembilan, Johor, Kuala Lumpur, Kelantan and Terengganu). Sales target is
able to achieve the sustainable use of customers that can help them in cost savings.
Objective of company : The Company’s business growth and increased profitability.
Goal of company : a) Promote the use of interlocking brick as green technology and sustainable
product.
: b) Become a role-model in applying the use of environmentally friendly
products in the construction sector.
Organization of Company:-
Manager : Noh Irwan Bin Ahmad
Production Engineerig : Aeus Asfaer Bin Kartubi
Corporate & Financial : Mohamad Faizfarhan Bin Mohd Uzir
Marketing Operator : Mohamad Saiful Bin Mohamad Khir
Office Clerk : Muhammad Abu Khair Bin Ziatol Ihazair
2.0 PRODUCT/SERVICE DESCRIPTION
The brick’s sizes are modular and rectangular (10cm high, 15cm wide and 30cm long) in shape, the length of the
brick is exactly twice its width so that right angle corner can be achieved without special corner bricks. Its
dimensions permit multi-dimensional walls making configuration such as buttresses or hollow columns possible.
3.0 INDUSTRY AND MARKETPLACE ANALYSIS
The industry that addresses Interlocking Brick System product market is construction industry. Analysis of
statistics of product used in construction and the availability of raw materials need to be conducted to find the
expected return in the future. The product functions as the material that will be used in construction. We intend
to serve construction materials market which is very large market. According to 2014 statistics, brick has the
highest demand to be used in construction compared to other materials. Benefits of the products are total
reduction of weight in construction, less construction time and aesthetically good.
10cm
30cm
15cm
The process of building walls is faster and requires less skilled labour
as the bricks are laid dry and lock into place.
Services: Manufacturers, distributors and supplying interlocking bricks
Advantages:
1) Capable of saving costs by 40%
2) Installation of uncomplicated and robust
3) Exceptional power and reduce the workforce (to save time)
4) No need for skilled workers
5) Sustainability product
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4. 4.0 MARKETING STRATEGY
Target customers are contractor, client and educational programs. The two biggest strength of our product are
effective reduction in overall construction cost and less construction time. Some of the weaknesses in our
product is no design for high - rise building as the compressive strength of the product is a little low. The price of
one unit of interlocking brick will be RM 1.80 and the gross revenues will be RM 1.00 per unit. The expected
annual sales are 700,000 unit.
5.0 DISTRIBUTION AND SALES STRATEGY
The distribution channels that we will be used are mail-order and direct sales. The sales strategies are advertising
in television, internet and newspaper, promoting through local university and face to face method. Our own
salesman will do the sales progress through phone call or face to face. Costs that are fixed is advertising through
internet while the variable are advertising through television and newspaper.
6.0 OPERATIONAL AND DEVELOPMENT PLAN
Operations is a process used to deliver the products and services to the marketplace including manufacturing,
transportation, logistics, travel, printing, consulting and after sales services. The critical phase in this work is the
financial management. We try to use the money in optimum ways to avoid loss in the early of the business. The
main product is the interlocking brick with green technology element. The chosen of the green technology
concept is due to the current situation which we need to preserve the nature for future generation.
In the operating plan, our company will sell interlocking bricks products according to the client's request. After
dealing with the client's product, the next process, we will provide the materials and reservations will be
informed by the total quantity requested. Product delivery can be requested by the client either delivery to the
construction site or a related places but they are subject to pay for service charge and if there is any damage to
the product, it will be replaced with a new product. The latter process, our company will record the purchases
that have been bought by the client as well as the remaining stock and the number of products produced at the
time.
The development phase is a plan for the future. A promotion is needed to promote our product to the
marketplace. production must be monitored to ensure quality production and design is fulfilled desired
characteristics. In addition, it is to avoid any wastage that occurred at the plant and also took into account the
factor of safety in the workplace.
7.0 FINANCIAL ESTIMATES
We need to make a loan to proceed with our business as to project our business so that we can produce our
product and supply and also sell it to our customers. Financial estimates have been made taking into account all
essential elements in which the total was RM 659, 538.20. We are keen to make a loan from MARA to begin
our company. The loan that we want to propose is about RM 613, 778.20 as capital on set-up the factory and
administration of the company and the remaining RM 45,760.00 is the result of contributions from the
partnership of our company.
Count financing1
Financing value: RM 613,778.20 | Profit rate: 7% per annum
Advantage Funding: RM 42,964.47 @ 7% @ 5 years | Financing Amount: RM 613,778.20 + RM 214,822.35
Monthly Repayment: RM 13,810.00 | Monthly fee: RM 10,229.65 | Advantage Funding: RM3 580.35
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Note: Calculation Financing Financial Benefits Straight-line method is used to facilitate the preparation of Cash Flow and the
estimated repayment. The actual monthly payment is smaller if using the declining balance method.
2