business plan for assignment ti

BUSINESS PLAN

By:Student of FTI

GANOLINGZHI A HEALTHY DRINK

There are no other things as precious as

your health

(Proverb)

Introduction

PT.Tekno TI UMI is a qualified company that produces natural foods and drinks. One of which is Ganolingzhi, a health drink made of Ling Zhi mushrooms. For years the Ling Zhi has been used a panacea (a cure-all medicine). Its prime function is to stimulate body organ’s function.Ganolingzhi packed all the Ling zhi’s goodness into a ready to drink bottle. Very practical, and unlike other health drinks, it completely save from any contra indications. This will be a very promising business. Our product is unique, and answers all customers’ need. So far PT.Tekno TI UMI seeking the right venture (or investor as well) to build a prospecting business together in a partnerships, 60:40 based.

Content

Competitive AnalysisMarket Analysis

Strategy and Implementation Summary

Management Summary

Financial Plan

Competitive Analysis

Company SummaryThe Product

COMPANY SUMMARY

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COMPANY SUMMARY (1)

MissionTo provide a fully natural healthy drink for people who concerns about their healthiness, and interested in keeping up their stamina with a practical and easy way. VisionTo become the lead producer of healthy drink in Indonesia

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COMPANY SUMMARY (2)Objectives

• To be top of mind among other natural health drink or supplements.

• To reach sales at 500.000 bottles for the first year in Sulawesi Island (big cities in east Indonesia) and Maluku, Papua area.

• To maintain a growth on sales at 20% per year

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COMPANY SUMMARY (3)

The CompanyThe Company, PT.Tekno TI UMI , is established to create natural and organic contain consumption products.

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COMPANY SUMMARY (4)

Company Location and Facilities PT.Tekno TI UMI is planned to be located at Karuwisi, Makassar. The plant itself is about 200 meters squares, while the office is about 100 meters squares. Maximum capacity of 1,100.000 bottles per year.

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THE PRODUCT

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THE PRODUCT (1)

Product Description Ganolingzhi is a healthy drink made from Ling Zhi mushroom (Ganoderma). Uses extraction method with no added artificial ingredients. Healthier feel of the body, sharper minds and energetic motions.

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THE PRODUCT (2)

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Sales Literature Spreading out brochures Advertisement by the means of electronic media, magazines and newspapers.

THE PRODUCT (3)

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Keys To success1. Completely has no side effect to human’s body.2. Production cost can be minimized because the

Ling Zhi mushroom it self is a local variety developed by TI-UMI biology’s laboratory.

3. Unique product, invented by a branded institution (TI-UMI).

THE PRODUCT (4)

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The Future Products Another lines of the products such as:

• vitality tonics• children‘s health drinks, and • pregnancy capsules.

COMPETITIVE ANALYSIS

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COMPETITIVE ANALYSIS (1)

Suppliers Industry Competitor(Intensity of Rivalry)

Substitutes

New Entrants

Buyers

Bargaining Powerof Supplier

Threat of NewEntrance

Bargaining Powerof Buyer

Threat of NewSubstitutes

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Threats of new entrants are high- Barriers to entry are low- Capital requirement is lowOur strategies to compete is to create a loyalty to our brand.

Threat of substitutes products are mediumThere are few resemble products either natural or chemical in the same market.

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Bargaining power of customers is lowHigh concern customers about health for different reasons.

Bargaining power of supplier is lowThe suitable mushroom is still produced by TI-UMI, but we can also outsource the seeds from other suppliers.

Intensity of rivalry is lowThere is no rival exist at all until now in the same industry.

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COMPETITIVE ANALYSIS (4)Concern and Risk

Concern:Product focus is the best strategy to be implemented for such market. Marketing concentration in:

1. Designing an eye-catching package and label2. Distributing through agent distributor, pharmacies, sport

centre, health club, supermarket and direct selling.3. Intensive promotion to people over the age of thirty-five on

the goodness of Lingzhi mushrooms.

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Risks:1. Consumers’s doubt about the goodness in

Ganolingzhi related to its price.2. Failure of campaign on Ganolingzhi’s

goodness

MARKET ANALYSIS

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MARKET ANALYSIS (1)

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Type of MarketConsumer Market: single use consumer goods, drink.

MARKET ANALYSIS (2)

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Market Share Adults in Indonesia year 2003 is 88 million populations. Target market (Sulawesi Island) = 12 million population.Middle Income Rp 2 million = 8 million populationOur potential user is 20% from the target marketMarket Share (20%) x 8 million = 1.6 million population

MARKET ANALYSIS (3)

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Market Segmentation GeographicMakassar, Palu, Kendari, Gorontalo,Maluku and Papua/Irian Island Demographic• Adults, Male and female• Middle disposable income• Any ethnic of Indonesia (prime target), kaukasia, (long term target) PsychographicThose who are dynamics, and concern about natural supplements for

many reasons.

MARKET ANALYSIS (4)

Main Competitor Potential competitors: Other healthy or energy drinks made from

un-organic ingredients with artificial additives Indirect Competitor: The Chinese herbs / potions that has similar effect as Ling Zhi mushrooms that also sold in Chinese drug stores or pharmacies Substitute Competitor: Other drugs from pharmacies that have the same effect as Ling Zhi does.

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STRATEGY AND IMPLEMENTATION SUMMARY

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STRATEGY AND IMPLEMENTATION SUMMARY (1)

Marketing Strategy Concentrated Marketing: Single version product to single and particular market segment.

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Positioning

Pricing Strategy Premium

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Promotion StrategyPushing promotion strategy; sales are supported by brochures, and advertisement.

The Pushing Promotional Strategy

Originator Intermediary End User

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Sales Promotion Tools1. Free tasted Ganolingzhi at the street and

malls.2. A contest of the healthiest adults.

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Distribution StrategyIntensive, aimed for maximum exposure. Sold through agent distributors, supermarket, pharmacies and health centre.


Production chainRaw Material from

Supplier

Supply GanolingzhiProduction Process

Bottling andLabelling

End Product

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Sales StrategySales strategy is Consultative model:Perform free counseling on healthiness among adultsAsk them what they actually need and expect from health drink Assist them to find safest health drink for their various concern of contra indication; the Ganolingzhi.

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Sales Forecast Net Profit Margin 34%BEP on sales of 208,312 units

Sales Forecast

0

1000

2000

3000

4000

5000

1 2 3 4 5

Year

Rupi

ah (i

n M

illio

n)

Year

Sales

MANAGEMENT SUMMARY

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MANAGEMENT SUMMARY (1)

Management Team PT.Tekno TI UMI is departmentalized. The main departments are marketing, operation, human resources development, and accounting and finance. The company will make all decisions in accordance with the company mission. Employees are delegated tasks based upon their specialty.

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Organization structurePresident

Commissaries

Director

Marketing Manager Operation Manager HRD Manager Accounting &Finance manager

Storage &Distribution

Division

Promotion Division

Capacity DesignDivision

Inventory & QualityControl Division

PersonnelManagement

Division

Training &Development

Division

Chief Accounting

Chief Financial


1. President Commissaries (Dr. Nusran Muhammad, PhD)Qualification:

Graduated from Doctorate program of AsiaeUniversity, Malaysia majoring in Industrial Management focus in Halal Industry Management Experienced in Industrial Management and Engineering Has been in Lecturer for 20 years.

2. Director (Dr.Ir. Muhammad Yusuf, DEA)Qualification:

Graduated from Doctorate program of Yale University majoring in science technologyExperienced in Biotechnology Has been in Lecturer for 8 years.

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3. Operation Manager (DR.Ir.Andi Pawennari, MT. MBA)Qualification:

Graduated from Doctorate program of ITS majoring in Industrial EngineeringExperienced in Production schedulingHas been working in PT. DI.

4. Marketing Manager (Ir.Hj.Nurhayati, MSIE)Qualification:

Graduated from Master program of TI-UMI majoring in Industrial EngineeringExperienced in Promotion techniqueHas been involved in Consulting in Engineering

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5. HRD Manager (DR.Ir.H. Lamatinulu, MT. MBA)Qualification:

Graduated from Doctorate program of American University majoring in Industrial Management Experienced in managing people Has been involved with Engineering Consultant.

6. Accounting and Finance manager(DR.Hj.Rahmaniah Malik, MBA)Qualification:

Graduated from Doctorate program of UK, London majoring in Financial Management Experienced in auditing and tax consultingHas been working in BPK(Badan Pemeriksa Keuangan) for 3 years .

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FINANCIAL PLAN

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FINANCIAL PLAN (1)

AssumptionAll figures are in real Rupiah (Indonesian currency)Commercial starts up on January 1, 2005All costs incurred during the initial six-month period of 2004 has been shown as pre-operating expensesOperational cost increases 15% per year (equal to the expected inflation rate)Dividend payment are 70% of free cash (free cash = Net Income after tax – Retention for growth)Interest rate is 15%Discount rate is 15%Corporate tax rate is 30%Account receivable is expected to be paid in 30 days

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FINANCIAL PLAN (2)

Rp-Rp500,000,000.00

Rp1,000,000,000.00Rp1,500,000,000.00Rp2,000,000,000.00Rp2,500,000,000.00Rp3,000,000,000.00Rp3,500,000,000.00Rp4,000,000,000.00Rp4,500,000,000.00

Rupi

ah

1 2 3 4 5

Year

Highlights

Sales

Gross margin

Net Income

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FINANCIAL PLAN (3)

Year Sales Gross margin Net Income

1 1,750,000,000.00 1,475,500,000.00 602,497,000.00

2 2,520,000,000.00 2,190,600,000.00 1,066,590,000.00

3 3,024,000,000.00 2,628,720,000.00 1,328,839,050.00

4 3,628,800,000.00 3,154,464,000.00 1,646,598,817.50

5 4,354,560,000.00 3,785,356,800.00 2,031,346,666.13

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FINANCIAL PLAN (4)Start-up ExpensesPlant Facilities

Boiler (1) 100,000,000.00 Mixer & Cooker 40,000,000.00 Incubator box 4,000,000.00 Refrigerator (2) 4,000,000.00 Steamer 25,000,000.00 Fuel Tank 20,000,000.00 Fuel Pipe 5,000,000.00 LAFC rent 12,000,000.00 210,000,000.00

EquipmentTrolley (3) 1,500,000.00 Crate (8) 800,000.00 Petri disc (10) 750,000.00 Shelf (1 set) 2,000,000.00 Scale (2) 400,000.00 Scalpel (10) 200,000.00 Polybag (50) 500,000.00 Diesel Fuel 1,500,000.00 Office Equipment 1,300,000.00 8,950,000.00

LaborStaff/Labor training 20,000,000.00 Recruitment Expenses 2,000,000.00 22,000,000.00

Other Expenses 5,000,000.00 5,000,000.00 Total Start-Up Expenses 245,950,000.00

Start-Up asset NeededCash Balance on Starting Date4,000,000.00 Start-Up Inventory 16,200,000.00

Total Current Asset 20,200,000.00

Building (Plant & Office) 500,000,000.00 Vehicles (2) 100,000,000.00 Total Assets 620,200,000.00 Total Requirements 866,150,000.00

FundingVenturing InvestmentEquity LAPI ITB 519,690,000.00 Equity Ventura 346,460,000.00 Total Investment 866,150,000.00

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FINANCIAL PLAN (5)

1 2 3 4 5Capacity 500,000.00 600,000.00 720,000.00 864,000.00 1,036,800.00 Growth 20% - 1.20 1.20 1.20 1.20 Price 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 Sales 1,750,000,000.00 2,520,000,000.00 3,024,000,000.00 3,628,800,000.00 4,354,560,000.00 COGS 274,500,000.00 329,400,000.00 395,280,000.00 474,336,000.00 569,203,200.00 Gross profit margin 1,475,500,000.00 2,190,600,000.00 2,628,720,000.00 3,154,464,000.00 3,785,356,800.00

Selling and gen. Adm. CostSalary 222,000,000.00 239,760,000.00 263,736,000.00 290,109,600.00 319,120,560.00 Utilities 24,000,000.00 27,600,000.00 31,740,000.00 36,501,000.00 41,976,150.00 Depreciation 163,790,000.00 163,790,000.00 163,790,000.00 163,790,000.00 163,790,000.00 Miscellaneous expenses 30,000,000.00 34,500,000.00 39,675,000.00 45,626,250.00 52,470,187.50 Marketing cost 175,000,000.00 201,250,000.00 231,437,500.00 266,153,125.00 306,076,093.75

614,790,000.00 666,900,000.00 730,378,500.00 802,179,975.00 883,432,991.25 Operating profit 860,710,000.00 1,523,700,000.00 1,898,341,500.00 2,352,284,025.00 2,901,923,808.75 Income tax 258,213,000.00 457,110,000.00 569,502,450.00 705,685,207.50 870,577,142.63 Net income 602,497,000.00 1,066,590,000.00 1,328,839,050.00 1,646,598,817.50 2,031,346,666.13 Retained Earning (40%) 240,998,800.00 426,636,000.00 531,535,620.00 658,639,527.00 812,538,666.45 Free cash 361,498,200.00 639,954,000.00 797,303,430.00 987,959,290.50 1,218,807,999.68 FCF 525,288,200.00 803,744,000.00 961,093,430.00 1,151,749,290.50 1,382,597,999.68 Dividend for Investor 144,599,280.00 255,981,600.00 318,921,372.00 395,183,716.20 487,523,199.87 Dividend for PT LAPI F&B 216,898,920.00 383,972,400.00 478,382,058.00 592,775,574.30 731,284,799.81 Net Cash Flow 438,707,000.00 902,800,000.00 1,165,049,050.00 1,482,808,817.50 1,867,556,666.13

Income Statement

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FINANCIAL PLAN (6)Balance Sheet

0 I II III IV VAssets

Cash 31,000,000.00 31,000,000.00 37,200,000.00 44,640,000.00 53,568,000.00 64,281,600.00 Cash at Bank - 255,429,000.00 607,812,333.33 1,265,369,350.00 1,809,704,422.50 2,481,382,537.88 Account Receivable 510,858,000.00 1,215,624,666.67 2,530,738,700.00 3,619,408,845.00 4,962,765,075.75 Inventories 16,200,000.00 16,200,000.00 19,440,000.00 23,328,000.00 27,993,600.00 33,592,320.00

Total Current Assets 47,200,000.00 813,487,000.00 1,880,077,000.00 3,864,076,050.00 5,510,674,867.50 7,542,021,533.63

Gross Fixed Assets 818,950,000.00 818,950,000.00 982,740,000.00 1,179,288,000.00 1,415,145,600.00 1,698,174,720.00 Acc. Depreciation (163,790,000.00) (327,580,000.00) (491,370,000.00) (655,160,000.00) (818,950,000.00)

Net Fixed Assets 818,950,000.00 655,160,000.00 655,160,000.00

Total Assets 866,150,000.00 1,468,647,000.00 2,535,237,000.00 3,864,076,050.00 5,510,674,867.50 7,542,021,533.63

Liabilities & EquityStock 346,460,000.00 491,059,280.00 747,040,880.00 1,065,962,252.00 1,461,145,968.20 1,948,669,168.07 Equity LAPI ITB 519,690,000.00 736,588,920.00 1,120,561,320.00 1,598,943,378.00 2,191,718,952.30 2,923,003,752.11 Retained Earning 240,998,800.00 667,634,800.00 1,199,170,420.00 1,857,809,947.00 2,670,348,613.45

Total Liabilities & Equity 866,150,000.00 1,468,647,000.00 2,535,237,000.00 3,864,076,050.00 5,510,674,867.50 7,542,021,533.63

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FINANCIAL PLAN (7)

Initial Investment 866,150,000.00 Equity 1,227,648,200.00 NPV 2,176,214,769.32 IRR 82%PBP 1 year 5 monthBEP 208,312 units

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FINANCIAL PLAN (8)

Gross margin 84%ROA 41%ROE 49%Profit Margin 34%ROI 70%

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Ganolingzhi,We give You

a Piece of TI-UMI)

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Many Thanks for Munawar for your materialThis material for example only

business plan for assignment ti

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