Assignment ENT300 : ENTREPRENEURSHIP [YUME SDN BHD]

ENTREPRENUERSHIP (ENT 300)

BUSINESS PLAN FOR YUME SDN. BHD.

LECTURERS’ NAME:

1.    MR FADER BIN ABDULLAH

2.    MR. MOHAMAD HAKIMY BIN ABDULLAH

GROUP MEMBERS	STUDENT ID NO.
SYAHIDA ABD AZIZ	2008220426
NURUL AFIFI RYANA ADNAN	2008274854
NORAINI PETTIRE	2008253422
NUR FATHIA SALEH	2008296216
NURUL EMIZAR JAMIL	2008220444

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CONTENTS

TABLE OF CONTENT	PAGE
Acknowledgments	7
Purpose of Business Plan	8
General Business Description	9
Submission Letter	10
Loan Application Letter	12
Introduction	13
Company Background	15
Partners Background	19
Location of Business	25

MARKETING PLAN	PAGE
Introduction	29
Products Description	30
Target Market	31
Market Size	33
Market Share	34
Sales Forecast	36
Marketing Strategies	37
Remuneration of Staff	41
Marketing Budget	42

OPERATIONAL PLAN	PAGE
Introduction	44
Process Planning	45
Production Schedule	47
Material Requirement	48
Capacity Planning	54
Machine and Equipment	58
Operation Layout Plan	60
Location	61
Operation Overheads	62
Operation Budget	64

ADMINISTRATION PLAN	PAGE
Office Layout	66
Organizational Chart	67
Manpower Planning	67
Schedule Of Task And Responsibility	68
Employee Incentive	69
Schedule Of Remuneration	70
List Of Office Equipment	71
Administrative Budget	72

FINANCIAL PLAN	PAGE
Introduction	74
Project Implementation Cost Schedule	78
Sources Of Fund Schedule	78
Fixed Asset Depreciation Tables	79
Loan Amortization Schedule	80
Hire Purchase Repayment Schedule	80
Pro-forma Cash Flow	82
Pro-forma Profit And Loss	84
Pro-forma Balance Sheet	85
Company Performance	87

CONCLUSION	92
APPENDIXES	93

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LIST OF TABLE CONTENT

INTRODUCTION	PAGE
Figure 1: Product of Yume Sdn Bhd	14
Table 1: Company Background	15
Figure 2: Organizational Chart	17
Figure 3: Product Logo	18
Table 2: Background General Manager	19
Table 3: Background Marketing Manager	20
Table 4: Background Operation Manager	21
Table 5: Background Administration Manager	22
Table 6: Background Financial Manager	23
Table 7: Equity and Contribution	24
Figure 4: Map of Location	26
Figure 5: Factory of Yume Sdn. Bhd.	27

MARKETING PLAN	PAGE
TABLE 1: Product Descriptions	30
Table 2: Market size in Kedah	33
Table 3: Market size in Bayan Lepas,Penang	33
Table 4: Market Share before entrance of YUME SDN BHD	34
Table 5: Market Share after entrance of YUME SDN BHD	34
Figure 1: Pie chart of Market Share before entrance YUME SDN BHD	35
Figure 2: Pie Chart of Market Share after Entrance YUME SDN BHD	35
Table 6: Sales forecast for year 2011	36
Table 7: Sales forecast by year	36
Table 8: Remuneration of staff	41
Table 9: Marketing Budget	42

OPERATING PLAN	PAGE
Table 1: Process of Flow Chart	45
Table 2: Production symbol	46
Table 3: The Business and Operation Hours	47
Figure 1: Process Flow Chart	49
Table 4: Bill of materials	50
Table 5: Monthly Budget Raw Material Requirement Schedule	51
Table 6: Manpower Requirements	56
Table 7: Schedule of Task and Responsibilities	57
Table 8: Remuneration Table	58
Table 9: Machines and Equipment	59
Figure 2: Layout of Business Operation	60
Table 10: Operation Cost	62
Table 11: Operations Budget	64

ADMINISTRATION PLAN	PAGE
Table 1: Man-powering Plan	67
Table 2: Schedule of Task and Responsibilities	68
Table 3: Schedule of Responsibilities	70
Table 4: List of Office Equipment	71
Table 5: Administrative Budget	72

FINANCIAL PLAN	PAGE
Table 1: Financial Information	77
Table 2: Financial Information	77
Table 3: Project Implementation Cost & Source Of Financial	78
Table 4: Depreciation Schedules	79
Table 5: Loan & Hire-Purchase Amortization Schedules	80
Table 6: Fixed Asset Depreciation Schedule	81
Table 7: Pro-Forma Production Cost Statement	83
Table 8: Pro-Forma Income Statement	84
Table 9: Pro-Forma Balance Sheet	85
Table 10: Financial Ratio Analysis	86
Figure 1: Current Ratio	87
Figure 2: Quick Ratio	87
Figure 3: Inventory Turnover	88
Figure 4: Gross Profit Margin	88
Figure 5: Net Profit Margin	89
Figure 6: Return To Asset	89
Figure 7: Return To Equity	90
Figure 8: Debts To Equity	90
Figure 9: Debts To Assets	91
Figure 10:  Times Interest Earned	91

APPENDICES	PAGE
Table 1: Partnership Name	93
Figure 1: Sign Board In front of Yume Sdn Bhd’s Office	95
Figure 2: Sign Board of Yume Sdn Bhd	95

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ACKNOWLEDGEMENTS

Alhamdulillah, we are most grateful to Allah S.W.T for the completion of this Business Plan as one of the requirements that need to be accomplished in the course work assessment for the code ENT 300.

Special thanks to our parents for giving financial support in completing this business plan. This business plan has been prepared with the cooperation and support of many people. Besides, not to be forgotten to both our lecturers which are MR. FADER BIN ABDULLAH and our second lecturer MR. MOHAMAD HAKIMY BIN ABDULLAH for their kindness in helping us during the process of completion of this project work. They have given us a good service by providing useful information to us. Without them, we would not be able to complete this business plan.

There are a lot of challenges that we have to face such as finding the material suppliers and machine capacity for our project. Besides that we have to go through a lot of difficulties with the furniture base product which is smart table factory, we are dealing with besides going through a lot of procedures.

Through these problems we manage to become more organized and mature in dealing with problems that occur during our research. This business plan covers organization, marketing, operation, financial and training plan and any other information needed by a new entrepreneur as a guide to start this business.

Lastly, to those who had involved and contributed directly or indirectly to this business plan, we are very grateful to them for the effort and initiative that they have shown in our project until we successfully completed our business plan.

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PURPOSE OF BUSINESS PLAN

The purpose of this business plan is as the first step as a module before starting a business. This business plan is very important for a new company like YUME SDN BHD because it may help us to maintain our business longer in the Malaysia market.

The purposes of doing this business plan are:

• To show the financial strength of the company, especially when applying for loans and to convince the investors towards providing funds or other financial institution.
• To fulfill one of the terms and condition that stated in ETR 300 project.
• As a guideline for us in setting, planning, managing, handling and controlling our business for the day to day management, budget, financial forecast, strategies, target market and even long term goals.
• As a master plan of an organization that necessary to calculate the effectiveness on running such business.
• It is also prepared to state clearly the information on the certain authorities’ parties to get permits or other facilities in the mean of formation of a business.
• This business plan can be utilized to convince the suppliers the ability of paying back on credit and the ability to carry out a project of services for customers or the tender board.
• To improve any weaknesses arise by comparing the actual performance of the firm with its master plan. It is to see whether it is a favorable or unfavorable situation.

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GENERAL BUSINESS DESCRIPTION

Nowadays, we know that business is one of the major sources of income for human since the early ages of civilization. Even the Prophet Muhammad once said, “9/10 of income come from businesses”. Therefore, business has a big potential to increase ones social standard and living.

For our business, we are producing smart table as our major product because we know the product is marketable in local and international market and we try to create something unique. We run a partnership business that is lead by Noraini Bt Pettire as a General Manager, Nur Fathia Bt Saleh as a Administration Manager, Nurul Afifi Ryana Bt Adnan as a Marketing Manager, Nurul Emizar Bt Jamil as a Financial Manager and Syahida Bt Abd Aziz as an Operational Manager. People who look into this business plan are:

1. Bank and Financial Institution
2. Investor
3. Entrepreneur
4. Manual and Guide Line

This business plan is prepared by Yume Sdn. Bhd in order to:

•       To obtain a term loan for the amount of RM122,000 from Maybank.

•       As a guideline in managing the business.

•  To provide an opportunity for entrepreneur to access the proposed business project.

•       To study and evaluate the feasibility of the business.

•       To maintain the goal of the firm profit maximization.

•       To be able to distribute the business resources more effectively.

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SUBMISSION LETTER

Diploma in Business Studies,

Faculty of Business Studies,

Mara University of Technology

Arau Campus,

02600 Arau,

Perlis Darul Sunnah.                                                                                    25 MARCH 2011.                                                                                                             

Encik  Fader,

Lecturer of Basic Entrepreneurship ( ETR 300 ),

Mara University of Technology,

Arau Campus,

02600 Arau,

Perlis Darul Sunnah.

Sir,

SUBMISSION OF THE ENTREPRENEURSHIP BUSINESS PLAN

According to the title above, we would like to submit our business plan on the name of Yume Sdn. Bhd consists of all the detail, example, the document and the following procedure which is located in Kulim, Kedah.

2. This report consists of important components and aspect that have been considered in the beginning of the business. It includes our business profile, structure administrative, financial, marketing, and operation aspect plus all other information regarding the business plan. 

3. There is the list of entire group members that is involved in the process of completing the business plan:-

• NORAINI BINTI PETTIRE
• NUR FATHIA BINTI SALLEH
• NURUL AFIFI RYANA BINTI ADNAN
• NURUL EMIZAR BINTI JAMIL
• SYAHIDA BT ABD AZIZ

4. We hope that you will be satisfied with our business plan and this business plan would benefit and educate individual concerned. All your kindness and corporation is much appreciated. Thank you.

Yours truly,

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(NORAINI BINTI PETTIRE)

General Manager

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(NURUL AFIFI RYANA BINTI ADNAN)

Marketing Manager

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(SYAHIDA BT ABD AZIZ)

Operational Manager

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(NUR FATHIA BINTI SALLEH)

Administrator Manager

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(NURUL EMIZAR BINTI JAMIL)

Financial Manager

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LOAN APPLICATION LETTER

Financial Manager,

YUME SDN. BHD.

Lot 5 Industrial Zone Phase 1,

Kulim Hi-Tech Industrial Park,

09000 Kulim, Kedah.                                                                        25 MARCH 2011.

Manager,

Credit Department,

Menara KWSP Jalan Bukit Lagi,

01000 Kangar,

Perlis.

Sir,

APPLICATION OF BUSINESS LOAN FINANCING

      Based on this subject above, we would like to apply business loan financing from your bank for us to support our business capital in generate our business project.

2.   This business is guarantee will earn high profit and demand from customer because this business can attract the customer from the shopping complex, mini market, school canteen and also several high education institution food courts that we will deliver every month.

3.   Our company is slightly different form our competitors because our company provide better product to customer. We sell the high performance product and quality.

4.   Therefore, to generate our business successfully we think that we want to apply a RM122,000 business loan financing from your bank. Thus, this loan will be use as a back up capital into our business operation.

5.   We hope that our application will get better consideration from your side. We always ready to serve any information that you need for next action about the operation beside that we attach our business plan for your attention and next action. Thank you for all your cooperation. Thank you.

Truly from,

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(NURUL EMIZAR BINTI JAMIL)

Financial Manager.

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1.0     INTRODUCTION

1.0.1  Our company is YUME SDN. BHD. Our business is focused in Kulim. We have registered our company on 12 January 2011. Our business start to move on 6 January 2011 and this date are same as our company date of commencement.

1.0.2  Our business is providing the furniture product based on the good quality of materials. Our Smart Table consists of a few compartments that can separate different papers that are used for different purposes. We use glass as our material at the surface of the table to make it transparent.  We also provided other compartments under the glass.

1.0.3   There are a few reasons why we choose this particular business. 

• The first reason is we want to reduce the space we use on the table. This is to make sure our things will not be messed-up.
• The second reason is we can keep our documents, especially papers in an efficient way. Thus, it is easier for us to find the needed papers.
• The third reason why we choose this business is that we can refer to our reference books easily because our table is transparent. We can place our books on the sliding wood which situated under the transparent glass.

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1.1  PRODUCT

Figure 1: Product of YUME Sdn Bhd

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2.0       Company Background

NAME OF COMPANY	YUME SDN. BHD.
BUSINESS ADDRESS	Lot 5 Industrial Zone Phase 1, Kulim Hi-Tech Industrial Park, 09000 Kulim, Kedah.
CORESSPONDENCE ADDRESS	smartable@yahoo.com.my
TELEPHONE NUMBER	04-6489122
FORM OF BUSINESS	PARTNERSHIP ENTERPRISE
MAIN ACTIVITIES	MANUFACTURING TABLE
DATE OF COMMENCEMENT	6TH JANUARY 2011
DATE OF REGISTRATION	12TH JANUARY 2011
REGISTRATION NUMBER	5469833
NAME OF BANK	MAYBANK
BANK ACCOUNT NUMBER	159001852893

Table 1: Company Background

YUME SDN BHD is our company’s name which had been decided together. YUME is a word originally from Japanese Language which means DREAM or HOPE. We decided to choose this name because we hope that our company will continue producing furniture in the future as what in our dreams.

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2.1       Mission, Vision and Objective

Vision

Our vision is to be the only company is the best in producing furniture base which manufacture and produce a smart table in this furniture industry particularly in domestic area.

Mission

Our first mission is to make sure that our product will be available through all Malaysia. In addition, we know that furniture is the primary elements which are more familiar nowadays. Besides that, we hope we will be supplying furniture to the entire world soon besides the best organization to manage the business. Lastly, to achieve customer satisfaction by putting Customer's Priority First and build their trust.

Objectives

Our objectives can be divided into two which are short-term objectives and long-term objectives. The objectives are:

Short-term Objectives

·         To launch our business in the most effective way.

·         Press release to all of the specialist business magazines and publications.

·         Increase employee’s efficiency and productivity, thus will increase the company status.

Long-term Objectives

·     When our business has become a fully established success we will be looking towards franchising the concept outside our country.

·   Running and controlling the business which can be set up and run in any part of the country with equal success.

·      Joint venture with other companies that are in a similar industry since it has a potential to grow because the different product we are produce.

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2.2       ORGANIZATIONAL CHART

Figure 2: Organizational Chart of YUME Sdn Bhd

Further explanation will be provided in another format of the file (i.e. PDF). This report is for the academic purposes only!

To get the full version of this business plan, you can download it from: HERE