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J&J ENTERPRISE
2.0 INTRODUCTION
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J&J ENTERPRISE
2.0 INTRODUCTION
Joy & Juicy Enterprise plan establish as a partnership business, involve of five people, and state of location at BANDAR SUNWAY. Date of business commencement on 31st January 2011 launch at BANDAR SUNWAY.
VISION
For our vision to gain high profit and revenue generated by its sales cover all expenditure to set up business. Also, provide good service with quality standards at reasonable or affordable price to the customer can pledge customers’ confidence and loyalty.
MISSION
Mission of our organization are to achieve high growth and increase our profit with enhance productivity. Other than that we are also want to create brand when established and open another branch at everywhere.
OBJECTIVE
Objective of our organization to make customer satisfaction with our good service and quality product. Then, to boast customer confident and create loyalty. Also, attract more customers and build a long good relationship with them.
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2.1 FACTOR SELECTING PROPOSED
1. Promote local fruit
This business is a one way that can introduce promotes a local fruit to the foreigner beside that also can help to increase gross domestic product to economic country.
2. Easy to market
Joy & Juicy produce many types of fresh fruit where we are easy to get the input and also easy to market because people mostly interested with fruit.
3. Save time in producing
To produce a product regarding to the customer’s demand, it requiring low time involvement and save time in producing.
4. Low competitor to attractive
At the place where our business located, these types of business still has low competitor which produce product same like us compare to other business. Customers have few choices to choose that makes we are as a power of supplies.
5. Easy to create external stimuli
The way how we present our product is easy to create external stimuli because naturally fruits has fresh smelly that can attract customers to buy our product.
6. Create supply
This business creates supply rather than create a demand. This business create a variety of product so then can create a demand to customer.
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2.2 FUTURE PROPECTS OF THE BUSINESS
Capital requirement
Capital requirement of a business is important. The funding of the business can be done with using the entrepreneur‘s own money or from external source such as borrowing loan from banks, finance company and cooperatives. Our partnership businesses contribute RM9643 for each person.
Risky
J&J enterprise face on low risk to enter a particular business field which is low competitor. At Sunway Pyramid only have two competitor which is Daily fresh and MBG, but two of them not sell a variety product compare to our company is supply a variety product. Based on risk on insurance scheme cover fire and accident at work is under responsibility of Sunway Pyramid department. For the risk machine breakdown our business take a risk to purchase the entire machine needed.
Loans
Based on financial, J&J ENTREPRISE is face on problem on first three month which is get a loss on sale, but our company able to recover loan and expenses because our profit still can support expenses and repay a loan.
Credit
J&J not facing on credit because our business is pay in cash. So, it not turns to a bad debt and will be treated as an expense for the company.
Foreigner Exchange
J&J ENTREPRISE not involve on foreign exchange and our business has not to face the risk of fall and rise in the exchange rate and our business using home currency unit in Ringgit Malaysia.
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2.3 OBJECTIVE OF BUSINESS PLAN
1 To Convince Bank In order to get Loan.
This business plan is prepared by JOY & JUICY ENTERPRISE for the purpose of obtaining working capital loan from SME Bank.
2 As a Guideline in Managing Business
This business plan is prepared by JOY & JUICY ENTERPRISE as a guideline for managing proposed venture
3 Forecasting Performance of Business in Future.
This business plan may provide information to management of this proposed business and how well this business progress in future
4 Preparation for Unexpected Situation.
By preparing this business plan, we may predict and assume what consequences may happen in future and what action we should take to solve it.
5 To get Big Picture of Business.
This business plan is a useful document that may explain about the proposes business before we start and develop it.
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2.4 COMPANY BACKGROUND
Name Of Company : J&J Trading Enterprise
Business Address(Shope) : Lot F2.57, 1st Floor, Sunway Pyramid,No. 3, JalanPj11/15, Bandar Sunway, 46150 Petaling Jaya, Selangor Darul Ehsan
Telephone Number : 012 7753368
Form Of Business : Partnership
Main Activities : Fruits Trading
Date Of Commencement : 30.01.2011
Date Of Registration : 27 JAN 2009
Registration Number : CA 0124030/T
Name Of Bank : SME BANK
Bank Account Number : 1405-1673844-68-1
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2.4.1 COMPANY LOGO
GREEN COLOUR : Indicated Peaceful and natureYELLOW COLOUR : Indicated Easy to see. Easy to attract the potential customer. BEE : Hard working animal indicated our partnership hard working to
establish a business. TAGLINE : Feel the luscious refer that our product making a variety product
base on fruit and attract the customer to try our product and feel it. JOY & JUICY : With image fruit in the word is display that our product produces
variety product based on fruits.OVUL : make a comparative relationship between our partnerships.
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2.5 BENCHMARK
Name : Mr. Jeffry bin Shahrul
Age : 38 years old.
No telephone : 016-9969918
Marital Status : Married and has three children.
Position : Manager Fruit Stick @ Klcc and Mid Valley.
Academic Qualification : Degree in Civil Engineering
Home Town : Johor
Experience : 20 Years in Food and beverage (F&B)
10 years as a Manager of Fruit Stick
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2.6 LOCATION PLAN
In J&J ENTERPRISE we know that location is one of the most important decision that entrepreneur should make. We aware that wrong choice of location can result lower sales and higher operation cost. So, for that reasons we have survey many strategic places to open our shop. After look at all aspects, we are agreed to open our shop at Sunway Pyramid shopping mall. We choose this place because of several reasons.
J&J ENTERPRISE’s lot shop located at Lot F2.57, 1st Floor of Sunway Pyramid. Sunway Pyramid located at center of Bandar Sunway. This is one of the most important factor as it easy excess by public or customers thus reduce time taken and transportation cost to reach this place. Just about 2 to 3 kilometers from it, there are many residential areas. Example like Bandar Sunway, Taman Wangsa Baiduri, Taman Desaria, Taman Subang Permai and many more.
In term of availability of manpower, we are not so worry as this place is near to housing areas. We also planned to hire only two worker to support or sales and operation every day.
Beside that, this place also near to our sources of raw materials. Based from our planned, we plan to purchase our stock of fruits for every two days direct from fruits vendor. Generally, we will get our stock from suppliers in Pasar Borong Selayang Lama and Pasar Borong Selangor which located about 30 to 50 kilometers from our place. In long term, we are still looking and search nearest suppliers for us to reduce our cost of transportation.
A transportation facility is not a big problem. Here, it connects with good connection of roads and highways such as Damansara-Puchong Highway (LDP), Federal highway and so on.
Moreover, the price charge for our shop also affordable compare to other place. Here, we will pay RM 4800 every month for 23x15 square feet compare to KLCC as the management charge RM 30,000 for smaller size of shop. Thus, we save our monthly expenditure for rent at this place.
Other factors that make us choose this place also because of available of utilities such as water supply and electricity that will be supply and arrange by management of Sunway Pyramid.
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Easy excess by customers, availability of manpower, and good transportation facility
Near to sources of input
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PASAR BORONG SELANGOR
PASAR BORONG SELANGOR
SUNWAY PYRAMID
SUNWAY PYRAMID
SUNWAY PYRAMID
SUNWAY PYRAMID
J&J ENTERPRISE
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SUNWAY PYRAMID
SUNWAY PYRAMID
PASAR BORONG SELAYANG LAMA
PASAR BORONG SELAYANG LAMA
J&J ENTERPRISE
2.7 CONTRACT OF AGREEMENT
This agreement will bind the partners with the following aspects:
1. Name of the business : Joy and Juicy enterprise (J&J).
2. The duration of the partnership 10 years to prevent the dissolution of the business. If one partner passes away or withdraws from the partnership, the business will
not be dissolve.
3. Individuals involved in managing the partnership business. Manager : Siti Ubaidah bt Ahlias Administration Officer : Zuraidah bt Abdullah Production Officer : Ainul Afifah bt Ibrahim Sale Officer : Norsidah bt Nazahar Account Officer : Noor Azwin bt Hamzah
4. The accounts of the business and share capital that show the contribution of each partner and the right and obligations of each partner towards the capital
Each partners should be contribute in share of the capital around RM 9643 for each.
All profit and loss will be share equally among all partners and any losses will be liable among partner equally according Partnership Act 1961.
5. The properties are considered as assets of the business All the properties in this company such as furniture, machine and vehicles
considered as assets of the business If the partners are contribute their assets in the company, it also considered as
assets of the business
6. Retirement:
If any partner who want to retire from the business must have consent from others
partners. They will get back their invets and the notice of retirement must be
given 3 months before the retirement date.
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7. Others:
Each of the partners must act in good faith and respect other partners. Partners
must have willingness and interested to make the business more succesful and
giving full commitment for the business. They also must be honest and straight
forward in order to execute responsible as a partner.
.
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2.8 PARTNERS BACKGROUND
Name :Siti Ubaidah Bt Ahlias
Ic No : 830403-56-5400
Address : 04-06-14, Desa Tun Razak, Jln 9/11 8 b
56000, Cheras Kuala Lumpur.
Email : [email protected]
Telephone : 017-3068077
Date Of Birth : 3 April 1982
Age : 28 Years Old
Marital Status : Married
Academic Qualification : Degree In Human Resource
Skills : Microsof Office
Experience : 2005-2007 - Marketing Officer
2007-2009 - Admin Executive
Previous Business Experience : Entrepreneur Seminar 2008
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MANAGERMANAGER
J&J ENTERPRISE
Name : Zuraidah Bt Abdullah
Ic No : 850120-03-5628
Address : No 4, Jalan Sultan Salahuddin AbdulAziz Shah Tiga, 9/6c, 40100 ShahAlam, Selangor Darul Ehsan.
Email : [email protected]
Telephone : 012-9247587
Date Of Birth : 20 January 1985
Age : 25 Years Old
Marital Status : Single
Academic Qualification : Degree in Finance
Courses Attended : Conventional Entrepreneurs
Skills : Able To Speak In Malay, English AndArabian, Able To Use Microsoft Office Tools Collect And Evaluate Research Data Using A Variety Of Tools Including The Internet.
Experience : As A Cashier in Cashier Dept At Cold Storage, Sacc MallShah Alam
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ADMINISTRATIVE OFFICERADMINISTRATIVE OFFICER
J&J ENTERPRISE
Name : Norsidah Bt. Nazahar
Ic No : 840528-04-5280
Address : No, 12 Jalan Dato Yusof Shahbudin 4 Taman Sentosa 41200 Klang, Selangor
Email : [email protected]
Telephone : 013-7010339
Date Of Birth : 28 May 1984
Age : 26 Years Old
Marital Status : Single
Academic Qualification : Bachelor in Marketing
Courses Attended : Entrepreneurship Convention, Real Undergraduate Conference 2007
Skills : Speak Fluent In Malay, Able To Speak English, Able To Use Ms Word, Ms Excel, Ms Power point, Html Able To Work With Dedicate, Good Sense And Responsibility
Experience : Sales Promoter in Food & Beverage Industry, Clerk in
First Lady, Tutor in Marketing Subject Previous Business : Agent to Food Supplier.Experience
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SALES OFFICERSALES OFFICER
J&J ENTERPRISE
Name :Ainul Afifah Bt Ibrahim
Ic No : 860621-11-5394
Address : No 15 Jalan Dahlia 3/3, Taman Dahlia,Bandar Baru Salak Tinggi, 43900 Sepang,Selangor.
Email : [email protected]
Telephone : 017-6086226
Date Of Birth : 21 June 1986
Age : 24 Years Old
Marital Status : Single
Academic Qualification : Degree in Operation Management
Skills : Microsoft Office
Experience : Part Time Clerk in Uitm, Promoter Parkson, Cashier In
Bookstore
Previous Business Experience : Agent for T-Shirt Printing
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PRODUCTION OFFICERPRODUCTION OFFICER
J&J ENTERPRISE
Name : Noor Azwin Bt Hamzah
Ic No : 851003-10-5820
Address : No.4 Lorong Melor 7, Taman Pertama, 45200 Sabak Bernam, Selangor
Email : [email protected].
Telephone : 017-3685820
Date Of Birth : 03 October 1985
Age : 25 Years Old
Marital Status : Single
Academic Qualification : Degree in Finance
Courses Attended : Entrepreneurship Programmed
Skills : Computer Knowledge – Microsoft Of Word (Word,Excel, Power Point) Communication Skills – Able To Speak Language English/Malay
Experience : Supervisor of Ladies Department Billion ShoppingCentres, Sabak Bernam, Selangor
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ACCOUNT OFFICERACCOUNT OFFICER
J&J ENTERPRISE
3.0 ADMINISTRATION
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3.1 ORGANIZATION CHART J&J ENTREPRISE
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3.2 SCHEDULE OF TASKS AND RESPONSIBILITIES
POSITION MAIN TASKS
GENERAL MANAGERTo plan, implement and control the overall management of the business.To plan and monitor the strategic progress of the business.To be accountable for the overall performance of the business.
EXECUTIVE FINANCIALPlan and manage the capital.Prepare the account balance, income statement, balance sheet.Resolves complex accounting errors or discrepancies to ensure accurate accounting and compliance with applicable rules, regulations, and laws.
EXECUTIVE MARKETINGConduct market research from time to time to learn consumers’ preferences/likings.Managing the production of marketing materials, including leaflets, posters, flyers and etc.Prepare marketing plan.Monitoring competitors’ activity.
EXECUTIVE OPERATIONLiaison person with the shopping complex.In-charge of operation hours of the shop.Plan and manage the delivery of fruits, and other suppliers. (E.g. plastic, ice, container, etc)Controls expenditure of input.
EXECUTIVE HR AND ADMINISTRATIONManage the employee details or information.Compute the overtime.Prepare monthly payroll.Manage the statutory payment.As required, recruit, hire, train and supervise, full-timeMaintain procedures manual to ensure consistent performance of routines
SALES ASSISTANTOpen and closing the business.Serving the customers. Take a good care of the working environment.
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3.3 RECRUITMENT PROCESS
Recruitment involves the process of searching, identifying and selecting qualified candidate for position in an organization. The process can be as simple a hiring two of person as a sale assistant at a shop at Sunway Pyramid. This recruitment process will be expected operate on one month
3.3.1 Searching candidate
This is task of looking for candidates and inviting then to apply for vacant position in the business. It can be done by advertising the vacancy through the printed such as regional newspaper. This business refer to present personal because is less costly and a reliable way to get capable candidates.
3.3.2 Selection process This process involves the task of reviewing the applicant, the short-listing applicants and selecting the best candidates for the job. Three most commonly used tools to facilitate these tasks are a job applicant, interview and selection process.
i. Job Application
A job application form is prepared by an employer to gather basic information about applicants. It helps to generate job related information such as age, gender, education level, previous employer can refer to the referees or ex-employer if further information is needed to evaluate the applicant.
ii. Job interview
This is the most frequently used method by employers to gain in depth information about applicant. Face to face meeting gives both parties a chance to learn more about each other. For instance, the employer can evaluate the applicant’s personality and communication skills. Likewise, the applicant can enquire more about the job and the organization he is about to joint.
iii. Selection test.
An employer may choose to use a selection test as a tool to evaluate applicants for position that require certain qualities. The test is used to measure an applicant’s potential to perform the job. These include performance, aptitude, interest, intelligence, skills or practical test. Example of practical test is machine handling skills.
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3.4 SALARY
Salary is a fixed monetary reward paid to workers on periodical basis. J&J enterprise using normal practice to pay salaried workers on a monthly basis. Salaried workers are expected to work a fixed number of hours which is 8 hours per day and 26 days per month. Salaried workers are not subjected to loss of pay in the case of allowed absences such as illness.
Contribution to the employees provident fund (EPF)
It is the responsibility of the employers to register its employees if they are not yet contributor to EPF. It is mandatory for employers to contribute to the EPF for all qualified employees. At present, the statory rate of monthly contribution employees is 11% of the basic salary. The employer’s portion of the monthly contribution is 12%.
Contribution to the social security organization (SOCSO)
Employers are obligated to protect their employees by contributing to the SOSCO. It is a form of insurance to protect the employees in term of monetary composition in case of unforeseen incidents at the work place. All employees earning RM3000 or less amount are qualified to contribute to this fund. Employees earning more than RM 3000 a month can also contribute to the fund with the consent of the employers. The rate of contribution by the employers and employees is based on the basic salary.
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3.5 LIST OF EQUIPMENT
MACHINE/EQUIPMENT QUANTITY PRICE PER UNIT (RM)
TOTAL COST
Cash register 1 1 500 1 500Punch card machine 1 1 500 1 500Lamp 5 1 000 5 000Supervisor desk and chair 1 250 250TOTAL 4250 8250
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3.6 ADMINISTRATION BUDGET
FIXED ASSETS
EXPENSES(RM)
MONTHLY EXPENSES
(RM)
OTHEREXPENSES
(RM)
Furniture and Fitting 5250Machinery and Equipment 3000Rent 4800Utilities 800Sundry 300Rental deposits 9600Deposits utilities 1600Road tax/ Insurance 1200Business Registration/ License 175Advertisement newspaper 200Job application form 10Legal fee 200TOTAL 8250 5900 12985
Total :27,135
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4.0 MARKETING
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4.1 MARKETING OBJECTIVE
As we know, fruits are one of the essential elements in our diet. In pyramid, fruits are in the third place that needed to all people for their body. In addition to, Joy & Juicy (J & J) Enterprise will be produce variety of fruits which is Fruits, “Rojak Buah”, Ice Blended, Juices, Strawberry-Dip-Chocolate, Cordial Drinks and our own recipe, Bano Sore.
Fruits business is a kind of common business in Malaysia, but why J & J Enterprise still chooses this kind of business? It is because we have our own technique and recipe in order to keep our product fresh and quality compare to other competitors.
In addition to, we want to cover 10% market share for starting year on existing market share. Our targets also want to increase percentage of market share at least 2% every year. By increase our sales every years we can create good competition among the other two competitors which is Daily Fresh and MBG Fresh Fruits.
4.2 PRODUCT OR SERVICES
As we know, fruits contain vitamins which are essential for our body to growth. In order to add variety to our product, besides sell our fruits, we also sell juices. The unique and strength of our product are based on our ingredient used, our own recipe such as Bano Sore that we adapt from traditional foods and we also apply safety policy.
The product that J & J Enterprise produce is Bano Sore which is our special recipe that contribute 10% of sales, Assortment of Fruits with contribute 30% of sales, Stick Fruits with contribute 5% of sales, Rojak Buah with contribute 10% of sales, Ice Blended with 10% of sales, Juices with 10% of sales, Strawberry-Dip-Chocolate with 5% of sales and Cordial Drinks with 10% of sales.
Besides that, other strength of our company also is based on our strategic location where most people passing by. Thus, it is not possible for customer to buy our product. Our company also operate everyday including public holidays and festival seasons.
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4.3 TARGET MARKET
As we are in Sunway Pyramid, our own targets are people who stay near that area which is resident in Taman Desaria, Taman Medan, Seksyen 15, Seksyen 14 and Taman Subang Permai. Besides that, Bandar Sunway also comprises of operating commercial and industrial business such as in Petaling Jaya Seksyen 7, Petaling Jaya Seksyen 9, Petaling Jaya Seksyen 11 and Lagoon Perdana. Moreover, there are also have student from many institutions such as Sunway Collage, Monash University, Taylors University Collage and The First Academy. Our product produce fresh fruit with contain a lot of vitamins that satisfied our customer needs and want.
From this, we are using segmented marketing as target market alternative. Our target is people who come to Sunway Pyramid. The common bases that we use segmentation include demographic segmentation which is information about their level of age with average range start from 5 years old and above, their income average level from RM 1000 and above, gender, occupation and education with average range start kindergarten until university student. Other than that, we also use psychographic segmentation which includes the personal tastes of the customer, the preference of the customer, customer status and loyalty to product. In behavioural segmentation, we identify occasion, user status and loyalty status.
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4.4 MARKET TREND AND MARKET SIZE
Nowadays, people are concern with healthy lifestyle. So, they will seek product that will give benefit to them. Today, time is so importance, so consumers more prefer to purchase something which is less time consuming in preparing it. Beside that, consumer also prefer product that are easy to reach them. The population at Sunway Pyramid is around 200,000 people. There are two major market segments within the target market area which is student from institutions and families living. The first group consists of about 8300 students from 4 institutions and the second group is made up of 191,700 from 9 families living including secondary and primary school at that area.
J & J Enterprise estimated the market size to be RM 27,500 a month, that is, RM 9,000 a month from 4 intistutions and RM 8,000 a month from families. We also took into consideration factors that may affect sales such as the school holiday and fasting month of Ramadhan. Using this information, J & J Enterprise estimated the market size to be only RM 309,600 per year.
Base from all the trends in our market today, we are confidence that our product may attract consumer as it will reduce their obstacle in life. We see that this business guarantee high return as the market size in value amount to RM 3,096,000 per year (RM 258,000 x 12 months). Part from the value, J & J Enterprise own 10% that equal to RM 309,600 per year.
In our location we have only two competitors to compete with them. J & J enterprise feel that it is not too tough to survive in this industry.
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4.4.1 Market Share
J & J Enterprise has identified 2 main competitors, which are Daily Fresh and MBG Fresh Fruits. Our survey according to this business reveals that each of the competitor controls a percentage of the market as shown below.
Market Share before Entry of J & J Enterprise:
Daily Fresh : 55% RM 141,900
MBG : 45% RM 116,100
100% RM 258,000
After analyzing the competitor’s strength and weaknesses, J & J Enterprise is confident it can control 10% of the market. This will mean that the existing competitors will lose some of their market after the entry of J & J Enterprise.
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Adjusted Market Share after the Entry of J & J Enterprise:
Daily Fresh : 50% RM 129,000
MBG : 40% RM 103,200
J & J Enterprise : 10% RM 25,800
100% RM 258,000
Estimated market share for J & J Enterprise is 10% or RM 25,800 per month.
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4.5 COMPETITION
To identify our competitor, we ensure that to assess their market position and strategy in term of product quality, pricing, distribution and promotion of competitors. Besides, we also look for competitor strengths and weaknesses in market.
COMPETITORS STRENGTHS WEAKNESSES
DAILY FRESH a) In term of size, Daily Fresh own higher market share which is 50.5%.
b) Experience for Daily Fresh in Sunway Pyramid is 5 years.
a) The promotion for Daily Fresh is not widely or lack of promotion.
b) Fruits display is not in proper ways in order to retain the quality of fruits.
MBG FRESH FRUITS
a) In term of size, MBG own 40.5% of market share.
b) MBG already experience for 3 years in Sunway Pyramid.
a) The price of the product is too expensive.
b) The location in Sunway Pyramid is not strategic.
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4.6 FORECAST SALES
There are several factors need to be taken into consideration when forecasting sales. In general, customer awareness of a business that has just started operations will take some time. While the customers familiarise themselves with the new business and its product or services, the business can expect sales to be less than the estimated market share. From this, we take action to speed up customer awareness and boost early sales figures with an aggressive and intensive marketing effort. For example we are focus on promoting our product and building trust between our business and our target market.
In term of seasonal factor, customer buying patterns can be influenced by certain seasons that occur within a particular business period. We as a new business have identified seasonal factor such as school holidays, festival season (Hari Raya Puasa, Chinese New Year, Deepavali and Christmas and so on) and weather conditions.
J & J Enterprise produce a variety fruits in Sunway Pyramid. From our survey, our target market area that the market size for fruits is about RM RM 3,096,000 per year. Since we are starting a new business, J & J Enterprise is confident it can achieve 10% market share which is equivalent to RM 309,600 per year.
As J & J Enterprise is just started the business, will take some time to achieve target profit. As we are new business, our target sales can be expect to be less than estimated market share for the first year.
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Market size = RM 3,096,000 per year
Market Share J & J Enterprise = 10%, RM 283,800 per year (for the first year with 11 month, RM 25,800 x 11 months)
Sales Forecast for Joy & Juicy Enterprise Year 2011
Month Sales Forecast (RM)
January -
February 23,200
March 23,200
April 23,736
May 23,736
June 24,252
July 24,252
August 23,200
September 24,510
October 24,510
November 24,768
December 25,026
Total 240,128
According to our marketing objective, our market share will increase 2% for every year. This means that J & J Enterprise market share for the year of 2012 is to be 12% which is equivalent to RM 271,520 and for the year 2013 is achieve 14% market share which is equivalent to RM 433,440.
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4.7 MARKETING STRATEGY
The marketing strategy that we are using consists of four key variables, also known as the 4Ps of marketing. The four variables are product, price, place and promotion.
a) Product strategy
In term of quality of our product, we are using only quality input such as fresh fruits to produce high quality output. Beside that, we also using simple and easy to carry by customer. We also produce mix the colour of fruits to attract customer attention besides using cordial and ice-blended drinks.
b) Pricing Strategy
Our price of the product is based on cost with average mark up 22% on cost per unit and some of our product also based on competition among another two competitors in Sunway Pyramid. Besides that, our factors affecting price of the product is according to our product concept, cost target market, our marketing objectives and targeted profit. We also look to economic conditions, government regulation, social concerns and consumer in order to setting the price.
c) Place Strategy
We are choosing Sunway Pyramid as our location of the business base on several factors such as type of product, target market, transportation ease and product standardization.
i) Type of product
Our product is easy to market. It means that, this business is accepted to all people because meet needs and wants of the customers. Besides that, we know that food is one of the basic needs for our body. Thus, fruits are one of the foods that people will buy.
ii) Target Market
As we know, our marketing objective in target market is resident who stay near Sunway Pyramid. In addition to, all level of age with average range start from 5 years and above. Besides that, there are also have student in many institutions such as, Sunway Collage, Monash University and so on that will be our target market.
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iii) Transportation ease
Sunway Pyramid location is strategic as it easy access with connection of highways and roads from many place. This will make easy to people who want to come to Sunway Pyramid.
iv) Product Standardization
Most of our product is using similar input which is fresh fruits. J& J Enterprise produce variety style that using fruits.
d) Promotion strategy
There are several promotion tools in this strategy which are advertising, sales promotion, personal selling and publicity. As we are in this business, our promotion strategies are using advertisement and sales promotion.
In advertising, we using banting and put it beside escalator, lift and other attraction place where people always passing by in order to promote our product. Besides that, we also use sales promotion which is our business using purchase with purchase and also coupon that we give during opening this business.
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4.8 MARKETING BUDGET
Items
Fixed Assets Expenses (RM)
Other Expenses (RM)
Signboard
Fruits Display Fridge (2 units)
Furniture
Round Aluminium Table (3 units) Aluminium Chairs (12 units) Stool (10 units)
Promotion
Price list Banting Banting stand
Grand Opening
Balloon Coupon Others accessories
Business Card (100 pieces x 5)
Workers T-Shirt ( 7person x 2)
1,500
16,000
270
600
1190
500
150
100
100
40
50
60
350
Total 19560 1350
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5.0 OPERATION MANGEMENT
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5.1 OPERATION MANAGEMENT
Operations management can be defined as the process of marshalling business input to transform them into output in the form of product or services. In J&J enterprise, we produce variety of fruits products such as:
Bano sore Assortment of fruits Mix fruits Stick fruits Strawberry dip chocolate Rojak Buah Ice blended Fresh juices Cordial drinks
In J&J ENTERPRISE, we plan our operation activities to ensure that our business will meet customers’ expectation, which include production parameters such as quality, quantity and cost.
In J&J ENTERPRISE, we are using lot of fruits as our raw material beside manpower, machine and equipment, and capital as our input. All this input we transform it into value added and quality product. All process involve had been planned systematically to ensure smooth flow of operation beside fully utilize resources and reduce cost of production in the future.
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J&J ENTERPRISE
5.2 PROCESS PLANNING
Process planning involve the identification of the step-by-step processes from beginning to end in making the product or in providing the services
Here we prepared the flow chart of J&J Enterprise products:
1. Bano Sore
40
Put it in the microwave’s tray. Add some sugar on it
Baked it for about 5 minutes in the microwave
Wait until the colour change to little bit brown and take it out
Put the bananas into plastic box.
Add 1 scope of ice cream with some decoration
Serve to customers
Slice banana into 4 slices
J&J ENTERPRISE
2. Assortment Of Fruits (Example: guava, papaya, watermelon, honey dew, mango, pineapple, jackfruit, dragon fruit, ciku.)
41
Choose the best quality fruits
Clean the fruits under running water
Cut the fruit
Put the cut fruit into a plastic
Deliberate the amount of fruit in the plastic until it reach 150grams
Serve to the customers
J&J ENTERPRISE
3. Mix Fruits(Combination of 4 to 5 kind of fruits in one cup)
4. Stick Fruits
42
Clean the fruits under running water
Cut the fruit
Put the cut fruit into a transparent cup
Serve to the customers
Choose the best quality fruits
Clean the fruits under running water
Cut the fruit
Choose the best quality fruits
Take 4/5 slice of fruit and put into a rib
Serve to the customers
J&J ENTERPRISE
5. Strawberry Dip Chocolate
6. Rojak Buah
43
Dip it into chocolate fountain
Clean the fruits under running water.
Cut all the fruits into bite size and combine them in a large mixing bowl.
Add in the prepared “Sambal Rojak” and stir with the fruit until well combined.
Serve portion in plastic box. Top with generous amount of grounded peanuts.
Clean the fruits under running water
Choose the best quality strawberries
Take 4 strawberry and put into a stick
Serve to the customers
Serve to the customers
J&J ENTERPRISE
7. Cordial Drinks(Example: Orange, Ice Lemon Tea and Soya Bean)
8. Ice Blended(Chocolate, kiwi, sour soup, pink guava)
44
Pour 2 tea spoon of selected cordial into the ice blended machine
Add 2 cup of ice
Cover the fruit juicer and switch on the machine
Blend it well for a bout 30 second
Pour the ice blended into transparent cup
Put some cream or chocolate rice
Cover the cup and serve to the customer
Add 7 liters water
Pour selected cordial into cordial drink machine
Switch on the machine
When it is ready, serve to customer using transparent cup
J&J ENTERPRISE
9. Fresh Juices(Any fruits choose by customer from variety of fruits stick)
45
Clean selected fruit under running water
Slice the selected fruits and put into the fruits juicer
Add some sugar and cover the fruit juicer
Switch on the machine and blend it well for about 30 seconds
Pour the juice into transparent cup
Serve to customers
J&J ENTERPRISE
5.3 PRODUCTION PLANNING
The main objective of production planning is to ensure the quantity of production is enough to fulfill expected market or sale forecast over certain period. J&J enterprise adopt Chase Strategy where the quantity varies to suit marked demand for every day.
J&J enterprise determine number of input require based from forecasting percentage of product through average forecast sale.
Here is our example of calculation for output per month for each product.
1. Bano Sore
Average sales forecast per month = 10% x RM 25,800= RM 2,580
Price per unit =RM 3.00
Number of output per month =RM 2,580/RM 3.00=860 units
Number of working days/month =30 daysAmount of output per day =860 units/30days
= 29 units per day
2. Assortment Of Fruits
Average sales forecast per month = 30% x RM 25,800= RM 7,740
Price per unit = RM 2.00
Number of output per month = RM 7,740/RM 2.00= 3,870 units
Number of operation days/month = 30 daysAmount of output per day = 3,870 units/30 days
= 129 units per day
46
J&J ENTERPRISE
3. Mix Fruits
Average sales forecast per month =10% x RM 25,800 = RM 2,580
Price per unit = RM 3.00
Number of output per month = RM 2,580/RM3.00= 860 units
Number of operation days/month = 30 daysAmount of output per day = 860 units/30days
= 29 units per day
4. Stick Fruits
Average sales forecast per month = 5% x RM 25,800= RM 1,290
Price per unit = RM 2.00
Number of output per month = RM 1,290/RM 2.00= 645 units
Number of operation days/month = 30 daysAmount of output per day = 645 units/30 days
= 22 units per day
47
J&J ENTERPRISE
5. Strawberry Dip Chocolate
Average sales forecast per month = 5% x RM 25,800= RM 1,290
Price per units = RM 4
Number of output per month = RM 1,290/RM4.00= 323 units
Number of working days/month =30 daysAmount of output per day =323 units/30days
= 11 units per day
6. Rojak Buah
Average sales forecast per month = 10% x RM 25,800= RM 2,580
Price per unit =RM 3.00
Number of output per month =RM 2,580/RM 3.00=860 units
Number of working days/month =30 daysAmount of output per day =860 units/30days
= 29 units per day
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J&J ENTERPRISE
7. Ice Blended
Average sales forecast per month =10% x RM 25,800= RM 2,580
Price per unit = RM 5.00
Number of output per month = RM 2,580/RM 5.00= 516 units
Number of operation days/month = 30 daysAmount of output per day = 424 units/30 days
= 17 units per day
8. Juice
Average sales forecast per month = 10% x RM 25,800= RM 2,580
Price per unit =RM 4.00
Number of output per month =RM 2,580/RM 4.00=645 units
Number of working days/month =30 daysAmount of output per day =645 units/30days
=22 units per day
49
J&J ENTERPRISE
9. Cordial Drinks
Average sales forecast per month = 10% x RM 25,800= RM 2,580
Price per unit =RM 2.00
Number of output per month =RM 2,580/RM 2.00=1290 units
Number of working days/month =30 daysAmount of output per day =1290 units/30days
=43 units per day
50
J&J ENTERPRISE
5.3.1 SUMMARY OF PRODUCTION PLANNING
Product Total Average
sales per
month (RM)
Percentage sales of
each product
per month (%)
Average sales
forecast per
month (RM)
Price per unit
(RM)
No. of output
sold per
month (unit)
Working day per month
No. of output
sold per day(unit)
Bano sore 25,800 10 2580 3.00 860 30 29
Assortment of fruits
25,800 30 7740 2.00 3870 30 129
Mix fruits 25,800 10 2580 3.00 860 30 29
Stick fruits 25,800 5 1290 2.00 645 30 22
Strawberry dip chocolate
25,800 5 1290 4.00 323 30 11
Rojak buah 25,800 10 2580 3.00 860 30 29
Ice blended 25,800 10 2580 5.00 516 30 17
Fresh juices 25,800 10 2580 4.00 645 30 22
Cordial drinks
25,800 10 2580 2.00 1290 30 43
TOTAL 100% 25,800 9869 331
Based from the diagram, it show our forecast for the unit of output that will be sell in day and month based from our total average sales per month.
In order to give better understanding, we had transferred all the data into a pie chart below;
51
J&J ENTERPRISE
52
J&J ENTERPRISE
5.4 MATERIAL PLANNING
Material management is an important component of any production set up as materials often form a high percentage of the total cost of the finished product or services.
J&J Enterprise choose the best quality of fresh fruits as the main ingredient for our product. Fruits would not last for a long period, so this is challenging for us to ensure we purchase enough stock to fulfill customer demand without wasting it.
Most of our materials are purchase from vary suppliers as we will compare and buy from the most cheap price for every purchase. It’s our company policy where we are not stick to one supplier to supply the same product. What the most important for us is to find the lowest cost in order to minimize our cost of operation thus gain more profit.
1. Bano Sore
Material Quantity Safety Stock Total Material Requirement
Price/Unit (RM)
Total Price(RM)
Banana 30 kg 2 kg 32 kg 4 128.00Sugar 2 kg 1 kg 3 kg 2 6.00Cooking oil 1 liter 500 ml 1.5 liter 12 12.00Ice cream 1 box 1 box 2 box 6 12.00Transparent box 7 packet 1 packet 8 packet 5.00 40.00Plastic fork 7 packet 1 packet 8 packet 2.50 20.00Total 218.00
53
J&J ENTERPRISE
2. Assortment Of Fruits
Material Quantity Safety Stock Total Material Requirement
Price/Unit (RM)
Total Price(RM)
Guava 140 kg 10 kg 150 kg 3.20 480.00Dragon fruit 50 kg 3 kg 53 kg 5.00 265.00Watermelon 100 kg 7 kg 107kg 1.50 160.50Honey dew 100 kg 7 kg 107 kg 2.50 267.50Mango 100 kg 7 kg 107 kg 3.50 374.50Pineapple 80kg 5 kg 85 kg 1.50 127.50Plastic 39 packet 1 packet 40 packet 2.50 100.00Rib 39 packet 1 packet 40 packet 2.00 80.00“serbuk asam” 5 packet 1 packet 6 packet 4.00 24.00Fruits dressing 3 bottel 1 bottel 4 packet 7.00 28.00Soy sweet sauce
6 bottel 1 bottel 7 bottel 3.00 21.00
Cili padi 1 kg 100 gram 1.1 kg 8.00 8.80TOTAL 1936.80
3. Mix Fruits
Material Quantity
Safety Stock
Total Material Requirement
Price/Unit (RM)
Total Price(RM)
Guava 30 kg 2 kg 32 kg 3.20 102.4Water apple 20 kg 1 kg 21 kg 5.00 105Watermelon 15 kg 1 kg 16 kg 1.50 24Honey dew 20 kg 1 kg 21 kg 2.50 52.5Mango 20 kg 1 kg 21 kg 3.50 73.5Pineapple 15 kg 1 kg 16 kg 1.50 24Dragon fruit 15 kg 1 kg 16 kg 5.00 80Grapes 15kg 1 kg 16 kg 8.00 128Papaya 15 kg 1 kg 16 kg 1.50 24Transparent cup 6 packet 1 packet 7 packet 8.00 56.00Rib 6 packet 1 packet 7 packet 2.00 14.00Total 683.40
54
J&J ENTERPRISE
4. Stick Fruits
Material Quantity Safety Stock Total Material Requirement
Price/Unit (RM)
Total Price(RM)
Papaya 30 kg 2 kg 32 kg 1.50 48.00Ciku 15 kg 1 kg 16 kg 7.00 112.00Jack fruit 30 kg 2 kg 32 kg 8.00 256.00Water apple 30 kg 2 kg 32 kg 5.00 160.00Plastic 5 packet 1 packet 6 packet 3.00 18.00TOTAL 594.00
5. Strawberries Dip Chocolate
Material Quantity Safety Stock
Total Material Requiremant
Price/Unit (RM)
Total Price(RM)
Chocolate 2kg 1 kg 3 kg 10.00 30.00Strawberry 19.2kg 1.5 kg 20.7 kg 15.00 310.50Rib 5 packet
(x 100 pc)1 packet 6 packet 2.00 12.00
Plastic box 3 packet 1 packet 4 packet 5.00 20.00Total 372.50
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J&J ENTERPRISE
6. Rojak Buah
Material Quantity Safety Stock Total Material Requirement
Price/Unit (RM)
Total Price(RM)
Chilli Sauce 5 liter 1 liter 6 liter 32.4 32.40
Sweet Soy Sauce
5 liter 1 liter 6 liter 31.00 31.00
Sugar 30kg 2kg 32kg 1.50 48.00Cili Padi 2 kg 100 gram 2.1 kg 8.00 16.80Belacan 500 gram 30 gram 530 gram 2.50 2.50Ground nuts 2 kg 200 gram 2.2 kg 5.00 11.00Pineapple 12kg 2 kg 14 kg 1.50 21.00Mango 20 kg 2 kg 22 kg 3.50 77.00Turnip 30 kg 2 kg 32 kg 4.00 128.00Guava 20 kg 2 kg 22 kg 3.20 70.40Water apple 20 kg 2 kg 22 kg 5.00 110.00Cucumber 10 kg 2 kg 12 kg 5.00 60.00Transparent box
6 packet 1 packet 7 packet 5.00 35.00
Rib 6 packet 1 packet 7 packet 2.00 14.00Total 657.10
7. Ice Blended
Material Quantity Safety Stock Total Material Requirement
Price/Unit (RM)
Total Price(RM)
Chocolate 2 kg 1 kg 3 kg 10.00 30.00Sour soup 8 liter 2 liter 10 liter 12.00 120.00Pink guava 8 liter 2 liter 10 liter 12.00 120.00Kiwi 8 liter 2 liter 10 liter 12.00 120.00Chocolate rice 1 packet 1 packet 2 packet 3.00 6.00Whipe Cream 5 bottle 1 bottle 6 bottle 8.00 48.00Transparent cup 4 packet 1 packet 5 packet 8.00 40.00Straw 4 packet 1 packet 5 packet 1.50 7.50Total 491.50
8. Fresh Juice
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J&J ENTERPRISE
Material Quantity Safety Stock Total Material Requirement
Price/Unit (RM)
Total Price(RM)
Orange 20 Kg 2 Kg 22 8.00 176Apple 20 Kg 2 Kg 22 8.00 176Watermelon 21 Kg 3 Kg 24 1.50 36Mangga 20 Kg 2 Kg 22 3.50 77Sugar 50 kg 3 kg 53 kg 1.50 79.5Ice 90 packet 6 kg 96 kg 2.00 192Transparent cup 5packet 1 packet 6 packet 8.00 48.00Straw 5packet 1 packet 6 packet 1.50 9.00TOTAL 793.50
9. Cordial Drinks
Material Quantity Safety Stock
Total Material Requirement
Price/Unit (RM)
Total Price(RM)
Orange Cordial 8 liter 2 liter 10 liter 12.00 120.00Soy Cordial 8 liter 2 liter 10 liter 13.00 130.00Lemon Tea Cordial
8 liter 2 liter 10 liter 12.00 120.00
Sugar 100 kg 20kg 120kg 1.50 180.00Transparent cup
10packet 1 packet 11 packet 8.00 88.00
Straw 10 packet 1 packet 11 packet 1.50 16.50Total 654.50
5.4.1 TOTAL RAW MATERIAL COST
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J&J ENTERPRISE
NO PRODUCT COST (RM)1. Bano Sore 218.002. Assortment Of Fruits 1936.803. Mix Fruits 683.404. Stick Fruits 594.005. Strawberries Dip Chocolate 372.506. Rojak 657.107. Ice Blended 491.508. Fresh Juice 793.509. Cordial Drinks 654.50
TOTAL COST 6, 401.30
The table above show the total J&J ENTERPRISE spend for raw material cost monthly for all 9 products, is RM 6,401.30.
The above pie chart show percentage of raw material expenses cost for each product monthly. Assortments fruits show highest cost spends monthly compare to Bano Sore with difference off 26%.
5.5 MACHINE & EQUIPMENT PLANNING
58
J&J ENTERPRISE
In order to produce our product, we are using several machine and equipment to produce good and quality product to our customer. Below is the detail of the machine and equipment required:
NO
MACHINE&EQUIPMENT QUANTITY PRICE/UNIT (RM)
TOTAL PRICE (RM)
1. Freeze 1 1 099.00 1 099.002. Fruit juicer 1 200.00 200.003. Ice-blended machine 1 10 000.00 10 000.004. Cordial drink machine 1 13 000.00 13 000.005. Chocolate fountain 1 5 000.00 5 000.006. Microwave 1 269.00 269.007. Chopping board 5 10.00 50.008. Knife 6 20.00 120.009. Peeler 2 14.50 29.0010. Weight scale 1 97.00 97.0011. Bowl 2 5.00 10.0012. Ice cream scope 1 5.00 5.0013. Spoon 10 2.00 20.0014. Apron 6 5.00 30.0015. Vinyl disposable gloves 60 boxes 5.00 300.00
TOTAL 30,229.00
FURNITURE
J&J enterprise choose to make some renovation in order to match with the production daily at shop beside create smooth and effective flow of production.
NO MACHINE&EQUIPMENT QUANTITY PRICE/UNIT (RM)
TOTAL PRICE (RM)
1. Build-in cabinet (renovation) 1 25 000.00 25 000.00TOTAL 25 000.00
5.6 MANPOWER PLANNING
59
J&J ENTERPRISE
In J&J ENTERPRISE, we had decided that all partners have to participate in production and daily business. We also hire another two workers to support our operation and increase our productivity and efficiency;
NO POSSITION NO.OF STAFF
REQUIRED
SALARY/MONTH (RM)
EPF 12 %, 11%
(RM)
SOCSO 2%
(RM)
TOTAL (RM)
1. Manager 1 1 500 180 30 1 7102. Account Officer 1 1 500 180 30 1 7103. Administrative
Officer1 1 500 180 30 1 710
4. Operation Officer 1 1 500 180 30 1 7105. Marketing Officer 1 1 500 180 30 1 7106. Sale Assistant 2 650 71.50 13 1 469
TOTAL 1 0019
5.7 OPERATIONS LAYOUT
60
J&J ENTERPRISE
Layout refers to the arrangement of machine, equipment, workers and other facilities used in the operations
In JOY & JUICY lot shop, we are using process layout based. This is because the layout is suitable for a business that produce several products using similar processes
This type of layout is design based on the similarity of processes where by machine and equipment that perform similar function will be grouped together
Here we have attach our operation layout for our shop lot at Sunway Pyramid
5.8 OPERATIONS BUDGET
61
J&J ENTERPRISE
ITEM FIXED ASSETS(RM)
MONTHLY EXPENSES (RM)
OTHERS EXPENSES (RM)
Machine 29,099.00
Equipment 1,130.00
Van 20 000.00
Build-in cabinet (renovation)
25,000.00
Raw Materials 6,401.30
Wages + EPF + SOCSO
10,019.00
TOTAL 74,099.00 16,420.30 1,130.00
TOTAL BUDGET 91,649.30
62
J&J ENTERPRISE
6.0 FINANCING
63
J&J ENTERPRISE
J & J ENTREPRISE
6.1 PROJECT IMPLEMENTATION COST
Project Implementation Cost
Requirements Cost
Fixed Assets Land & Building Furniture & fixtures 8810 Machinery 48099Vehicle – Van (2nd hand) 20000 Renovation cost 25000 Plant & MachineryOffice Equipment Working Capital 2 monthsAdministrative 11800 MarketingOperations 32840 Pre-Operations & Other Expenditure 15465 Contingencies 10% 16201
TOTAL 178215
64
J&J ENTERPRISE
6.2 SOURCES OF FINANCING
Sources of Finance
Requirements Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing F. Assets
Land & Building Furniture & fixtures 5595 3215 Machinery 48099 Vehicle – Van (2nd hand) 20000 Renovation cost 25000 Plant & Machinery Office Equipment Working Capital 1 months Administrative 11800 Marketing Operations 32840 Pre-Operations & Other Expenditure 15465
Contingencies 10% 16201
TOTAL 130000 48215
65
J&J ENTERPRISE
6.3. PRO FORMA CASH FLOW STATEMENT
J & J ENTERPRISECASH FLOW PRO FORMA STATEMENT
MONTHPre- 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL
Operations YEAR 1 YEAR 2 YEAR 3
CASH INFLOW
Equity (Cash) 48215 48215
Term loan 130000 130000 371520 433440
Cash Sales 23200 23200 23736 23736 24252 24252 23200 24510 24510 24768 25026 264390 371520 433440
TOTAL CASH INFLOW 178215 23200 23200 23736 23736 24252 24252 23200 24510 24510 24768 25026 442605
CASH OUTFLOW
Administrative Expenditure
Rent 4800 4800 4800 4800 4800 4800 4800 4800 4800 4800 4800 4800 57600 57600 57600
Utilities 800 800 800 800 800 800 800 800 800 800 800 800 9600 9600 9600
Sundry 300 300 300 300 300 300 300 300 300 300 300 300 3600 3600 3600
Salary, EPF & SOCSO
Marketing Expenditure
Salary, EPF & SOCSO
Advertising
66
J&J ENTERPRISE
Operations Expenditure
Cash Purchase 6401 6401 6401 6401 6401 6401 6401 6401 6401 6401 6401 70411 85450 99691
Salary, EPF & SOCSO 10019 10019 10019 10019 10019 10019 10019 10019 10019 10019 10019 110209 120228 120228
Payment of account payable
Carriage inward & duty
Rental
Utilities
Other Expenditure
Pre-Operations
Deposit (rent, utilities, etc.) 11200 11200
Business Registration & Licences 175 175
Insurance & Road Tax for Motor Vehicle 1200 1200 1200 1200
Other Pre-Operations Expenditure 2890 2890
Fixed Assets
Purchase of Fixed Assets - Land & Building
Purchase of Fixed Assets - Others 101909 101909
Hire-Purchase Down Payment
Hire-Purchase Repayment:
Principal
Interest
Loan Repayment:
Principal 903 903 903 903 903 903 903 903 903 903 903 903 10833 10833 10833
Interest 433 433 433 433 433 433 433 433 433 433 433 433 5200 4767 4333
Tax Payable
67
J&J ENTERPRISE
TOTAL CASH OUTFLOW 117374 7236 23656 23656 23656 23656 23656 23656 23656 23656 23656 23656 23656 384827 293278 307085
CASH SURPLUS (DEFICIT) 60841 (7236) (456) (456) 80 80 596 596 (456) 854 854 1112 1370 57778 78242 126355
BEG: CASH BALANCE 60841 53605 53149 52693 52773 52853 53449 54045 53589 54443 55297 56409 57778 136020
END: CASH BALANCE 60841 53605 53149 52693 52773 52853 53449 54045 53589 54443 55297 56409 57778 57778 136020 262375
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J&J ENTERPRISE
6.4 PRO FORMA INCOME STATEMENT
Pro Forma Income Statement WE CARE FOR YOU SDN. BHD.
PRO-FORMA INCOME STATEMENT
Year 1 Year 2 Year 3
Sales 264 390 371520 433440
Less: Cost of Sales
Opening stock
Purchases 70411 85450 99691
less: Ending Stock
Carriage Inward & Duty
70411 85450 99691
Gross Profit 193979 286070 333749
Less: Expenditure
Administrative Expenditure 70800 70800 70800
Marketing Expenditure
Other Expenditure
Business Registration & Licences 175
Insurance & Road Tax for Motor Vehicle
1200 1200 1200
Other Pre-Operations Expenditure 2890
Interest on Hire-Purchase
Interest on Loan 5200 4767 4333
Depreciation of Fixed Assets 6577 6577 6577
Operations Expenditure 110209 120228 120228
Total Expenditure 197051 203572 203138
Net Profit Before Tax (3072) 82498 130611
Tax 0 0 0 Net Profit After Tax (3072) 82498 130611 Accumulated Net Profit (3072) 79426 210037
69
J&J ENTERPRISE
6.5 PRO FORMA BALANCE SHEET
J & J ENTERPRISEPRO-FORMA BALANCE SHEET
Year 1 Year 2 Year 3 ASSETS Fixed Assets (Book Value) Land & Building Furniture & Fitting 5250 5250 5250
Machinery & Equipment 3000 3000 3000
Fruit display 14000 12000 10000
Furniture 3560 3560 3560
Machinery 26189 23279 20369
Renovation 25000 25000 25000
Van 18333 16666 14999
95332 88755 82178
Current Assets Stock of Raw Materials 0 0 0 Stock of Finished Goods
Accounts Receivable
Cash Balance 57778 136020 262375
57778 136020 262375
Other Assets Deposit 11200 11200 11200 TOTAL ASSETS 164310 235975 355753
Owners' Equity Capital 48215 48215 48215 Accumulated Profit (3072) 79426 210037
45143 127641 258252
Long Term Liabilities Loan Balance 119167 108334 97501
Hire-Purchase Balance
119167 108334 97501
Current Liabilities Accounts Payable
TOTAL EQUITY & LIABILITIES
164310 235975 355753
70
J&J ENTERPRISE
6.6 FINANCIAL ANALYSIS
J & J ENTERPRISE
FINANCIAL PERFORMANCE
Year 1 Year 2 Year 3
PROFITABILITY Sales 264390 371520 433440 Gross Profit 193979 286070 333749 Profit Before Tax (3072) 82498 130611 Profit After Tax (3072) 82498 130611 Accumulated Profit (3072) 79426 210037 LIQUIDITY Total Cash Inflow 442605 371520 433440 Total Cash Outflow 384827 293278 307085 Surplus (Deficit) 57778 78242 126355 Accumulated Cash 57778 136020 262375 SAFETY Owners' Equity 45143 127641 258252 Fixed Assets 95332 88755 82178 Current Assets 47732 125948 252277 Long Term Liabilities 119364 108334 97501 Current Liabilities 0 0 0 FINANCIAL RATIOS Profitability Return on Sales -1% 22% 30% Return on Equity -7% 64% 51% Return on Investment -2% 35% 37% Liquidity Current Ratio - - - Quick Ratio (Acid Test) - - - Safety Debt to Equity Ratio 2.64 0.85 0.38 BREAK-EVEN ANALYSIS Break-Even Point (sales) 104724 108180 107952 Break-Even Point (%) 40% 29% 25%
71
J&J ENTERPRISE
Return on sales
Year
Return on equity
Year
72
%%
J&J ENTERPRISE
Return on investment
Year
Debt to equity ratio
Year
73
%
Times
J&J ENTERPRISE
6.6 BUDGET
ADMINISTRATIVE BUDGET
Particulars F.Assets Monthly Exp. Others Total
Fixed Assets
Furniture & fitting
5250
5250
Machinery & Equipment 3
000 30
00
-
-
-
-
-
-
Working Capital
rent 4800 48
00
Utilities 800 8
00
sundry 300
300
- -
- -
- -
- -
Pre-Operations & Other Expenditure
Other Expenditure -
Deposit (rent, utilities, etc.)
11200 1
1200
Business Registration & Licences
175 1
75
Insurance & Road Tax for Motor Vehicle
1200
1200
Other Pre-Operations Expenditure 4
10 41
0
Total 8250 5900 12985
27135
74
J&J ENTERPRISE
6.7.1 MARKETING BUDGET
MARKETING BUDGET
Particulars F.Assets Monthly Exp. Others Total
Fixed Assets
Signboard 1
500 15
00
Fruits Display fridge 16
000 1600
0
Furniture
2060
2060
-
-
Working Capital
Salary, EPF & SOCSO
Advertising
- -
- -
- -
- -
- -
Pre-Operations & Other Expenditure
Other Expenditure
Deposit (rent, utilities, etc.) -
-
Business Registration & Licences -
-
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure
1350 1
350
Total 19
560 1
350 2091
0
75
J&J ENTERPRISE
6.7.2 OPERATION BUDGET
OPERATIONS BUDGET
Particulars F.Assets Monthly Exp. Others Total
Fixed Assets
Machinery 29099 2909
9
Van 20000 200
0
Renovation 25000
25000
Working Capital
Raw Materials & Packaging 6401 640
1
Carriage Inward & Duty - -
Salaries, EPF & SOCSO 10019 100
19
Rental
Utilities
Pre-Operations & Other Expenditure
Other Expenditure
1130 1130Deposit (rent, utilities, etc.)
Business Registration & Licences -
-
Insurance & Road Tax for Motor Vehicle -
-
Other Pre-Operations Expenditure -
-
Total 740
99 16420 1130
91649
76
J&J ENTERPRISE
6.8 DEPRECIATION SCHEDULE
Fixed Asset Fruit displayCost (RM) 16000 Method Straight Line
Economic Life (yrs) 8 Annual Accumulated
Year Depreciation Depreciation Book Value
- -
16000
1 2000 20
00 14
000
2 2000 40
00 12
000
3 2000 60
00 10
000
Fixed Asset MachineryCost (RM) 29099 Method Straight Line
Economic Life (yrs) 10 Annual Accumulated
Year Depreciation Depreciation Book Value
- - 29099
1 291
0 2
910 26189
2 291
0 5
820 23
279
3 2910 87
30 2
0369
77
J&J ENTERPRISE
78
Fixed Asset VanCost (RM) 20000 Method Straight Line Economic Life (yrs) 12
Annual Accumulated
Year Depreciation Depreciation Book Value
- - 20000
1 1667 1667 1666
6
2 1667 333
3 149
99
3 1667 500
0 133
32
J&J ENTERPRISE
6.9 LOAN AMORTIZATION SCHEDULE
LOAN REPAYMENT SCHEDULEAmount (Rm) 130000 Interest Rate 4% Duration (yrs) 12 Method Anually Year Principal Interest Total Payment Principal Balance
-
- - 130000
1
10833 5200
16060
119167
2
10833 4767
15626
108334
3
10833 4333
15192
97501
79
J&J ENTERPRISE
6.10 SALES & PURCHASES PROJECTION
SALES PROJECTIONMonth 1 - Month 2 23200 Month 3 23200 Month 4 23736 Month 5 23736 Month 6 24252 Month 7 24252 Month 8 23200 Month 9 24510 Month 10 24510 Month 11 24768 Month 12 25026Total Year 1 264390 Total Year 2 371520 Total Year 3 433440
PURCHASE PROJECTIONMonth 1 6401 Month 2 6401 Month 3 6401 Month 4 6401 Month 5 6401 Month 6 6401 Month 7 6401 Month 8 6401 Month 9 6401 Month 10 6401 Month 11 6401Month 12 6401 Total Year 1 70411 Total Year 2 85450 Total Year 3 99691
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6.11 COLLECTION FOR SALES & PAYMENT FOR PURCHASES
CASH COLLECTIONS FOR SALESIn the month of sale 100%1 month after sale2 months after sale Total 100%
CASH PAYMENTS FOR PURCHASESIn the month of purchase 100%1 month after purchase 2 months after purchase Total 100%
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7.0 CONCLUSION & JUSTIFICATION
As a conclusion according to our proposal, we hope we can convince capitalist, banker and investor in order to raise capital to manage a business more effectively in future as to achieve our vision and our mission, which is to gain high profit and revenue generated by its sales cover all expenditure to set up business and also increase our productivity.
This proposal also will be used as our guidelines to handle this business effectively in future and this is refer on how to operate a business according four important element which is on administration, marketing, operation and also financial.
We believe that, our business will success due to strategic location that we choose that may attract many people to visit our shop and purchase our product because our shop is located on shopping mall which is easy to obtain a customer.
On financial we obtain a deficit on for the first there year because on beginning business. Our businesses also have a deficit during a fasting month because on high demand, but profit per year we obtain a profit on three year forecast.
In addition, since our product a variety product based on a fruits, we ensure that our business will go further, and will obtain a customer because customer can make an option on our variety product.
J&J ENTERPRISE operate to make a quality product in order to satisfaction of our customer. This is for make a long term relationship with our customer in order to increase our sale.
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8.0 APPENDIX
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