MPU3232 Technopreneurship- Business Plan: Multipurpose lamp clockjar (fairy lamp)

TECHNOPRENEURSHIP- THE BUSINESS PLAN MULTIPURPOSE LAMP CLOCK JAR (FAIRY LAMP)

LECTURER

: SIR ABDUL RAZAK BIN HAJI MOHD YUSOFF

SECTION

: L01-T2

GROUP MEMBERS: 1. GENERAL MANAGER MUHAMMAD ANAS BIN MUHAMAD AZMI (55213114385)

2. ASSISTANCE MANAGER NABILAH BINTI NORDIN (55213114016)

3. PRODUCTION EXECUTIVE SITI HAJAR MOHAMED (55213114225)

4. FINANCIAL EXECUTIVE ANIS IZZATI BINTI MOHD KELANA (55213114022)

5. ADMINISTRATION EXECUTIVE MUHAMMAD RUSYDAN HAZIQ BIN HASYIM (55213114111)

6. MARKETING EXECUTIVE NORZAITUL HANIS BINTI KASIM @ MANSOR (55213114104)

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TABLE OF CONTENT

1.0 EXECUTIVE SUMMARY ................................................................................................4 2.0 INTRODUCTION........................................................................................................... 5-6 3.0 PURPOSES OF BUSINESS PLAN ...................................................................................7 4.0 BACKGROUND OF THE BUSINESS .............................................................................8 5.0 BACKGROUND OF PARTNERS .............................................................................. 9-14

6.0 ADMINISTRATION PLAN ............................................................................................15 6.1 Introduction to the organizations.....................................................................................15 Mission .................................................................................................................................. Vission ................................................................................................................................... 6.2 Business ProjectBackground ..........................................................................................16 6.3 Business Address................................................................................................................. 6.4 Location of the Business ..................................................................................................... 6.5 Organization Chart .............................................................................................................. 6.6 List of Administration Personel .......................................................................................... 6.7 Schedule of Task and Responsibilities ................................................................................ 6.8 Schedule of Remuneration .................................................................................................. 6.9 List of Office Equipment..................................................................................................... 6.10 Administration Budget ...................................................................................................... 6.11 Organizations Budget ........................................................................................................ Table 6: Table of Organizations Budget ...................................................................................

7.0 THE MARKETING PLAN .................................................................................................. 7.0 Summary ............................................................................................................................. 7.1Product Description ..............................................................................................................

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7.2 Market Analysis and Target Market...............................................................................25 7.2.1 Target Market................................................................................................26--27 7.5 Sales Forecast ......................................................................................................................

8.0 OPERATIONAL PLAN ....................................................................................................... 8.1 Process Flow Diagram for the Making of Aromatherapy Oil ............................................. 8.2 Process Description for Making of Aromatherapy Oil 8.3 Units Output of Operation..............................................................................................36 8.4 Operation Organization ...................................................................................................37 8.5 Operation Budget...........................................................................................................39

9.0: FINANCIAL PLAN ............................................................................................................. 9.1 Introduction....................................................................................................................41 9.2 Objectives.......................................................................................................................41 9.3 Project Implementation Cost ............................................................................................... 9.4 Operating Budget ............................................................................................................43 9.5 Marketing Budget ...................................................................................................... 44-45

10.0 JUSTIFICATION ............................................................................................................... 11.0 CONCLUSION...............................................................................................................47

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LIST OF TABLES Table 1: Administration Personal Tables ................................................................................... Table 2: Schedule of task and responsibilities ............................................................................ Table 3: Schedule of Remuneration............................................................................................ Table 4: Table of list of Office Equipment.................................................................................. Table 5: Table of Administration Budget.................................................................................... Table 6: Table of Organizations Budget .....................................................................................

LIST OF FIGURES

Figure 1:UniKL MICET Malacca ............................................................................................. Figure 2: Location of UniKL MICET ....................................................................................... Figure 3 Process flow diagrams for production of Spackle Glass Cleaner ........................... Figure 4 Example of Sparkel Glass Cleaner............................................................................. Figure 5 Operation Organization Chart ...................................................................................

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CHAPTER 1 EXECUTIVE SUMMARY

The company was named Lullaby Electrical and Enterprise has been established on 2nd November 2016 and target to be well known around Malaysia because of the product named Fairy Lamp as multipurpose lamp clock jar. The business was focused to the same area of head office and manufacturing place. The head office and manufacturing factory was located at MP 859, Jalan 4, Taman Melaka Perdana, 78000 Alor Gajah, Melaka. To ensure high and good quality of product, consistency and flexibility of supply and online marketing and transportation of product.The manufacturing of this Fairy Lamp Clock Jar used four materials such as glass jar, quartz clock mechanism, light bulb and aromatherapy oil. For aromatherapy oil, there are several steps to process it. 150mL of aromatherapy oil for one unit of Fairy Lamp Clock Jar. The product is applying Green Technology which we used zero-chemical and some of recycle things and basically it can be use in many ways or other word is multipurpose product. It is designed especially for most of students suffer of tiredness and fatigue due to lack of sleep and busy life style. With hectic schedule of learning and other things to do, most of students suffer of tiredness and fatigue due to lack of sleep and busy lifestyle. The uniqueness and advantages of Fairy Lamp compared to others are low cost and our product is suitable for all type of glass jar or plastics jar and it can also be used for multipurpose lamp clock jar for example lamp, clock, aromatherapy scent and home appliances beneficial towards human health, the plan to sell these home appliances is not limited towards students only but it is worldwide and can be used for anybody with different background of social or work environment. Currently, our team are trying to make as a much as profit and find the opportunity to expand our business. Lastly, our company is looking forward to improve the quality from time to time for customer’s satisfaction in order to uphold the company’s mission and to become first customer’s choice brand in constant evaluation that satisfies the need of end-customers.

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CHAPTER 2 INTRODUCTION Lullaby Electrical Enterprise is a new company that will provide high quality of home appliances and provides healthy aromatherapy services to its clients. Lullaby Electrical Enterprise is scheduled to begin operations on October 20, 2016. Lullaby Electrical Enterprise will be a partnership, owned and operated by Norm Johnson and Rupert Smith. The selection of name for Lullaby Electrical Enterprise based on agreement of partners consists of six members of General Manager, Assistance Manager, Administrative Manager, Operation Manager, Marketing Manager and Finance Manager during first brainstorming. The members are Muhammad Anas Bin Muhamad Azmi, Nabilah Binti Nordin, Siti Hajar Mohamed, Anis Izzati Binti Mohd Kelana, Muhammad Rusydan Haziq Bin Hasyim and Norzaitul Hanis Binti Kassim @ Mansor The business was focused to the same area of head office and manufacturing place. The head office and manufacturing factory was located at MP 859, Jalan 4, Taman Melaka Perdana, 78000 Alor Gajah, Melaka. To ensure high and good quality of product, consistency and flexibility of supply and transportation, Lullaby Electrical and Enterprise Enterprise manufactures 100% of the product in own manufacturing area. The initiate for Lullaby Electrical Enterprise to produce a high quality and healthy home appliances is because of the observation towards students nowadays. With hectic schedule of learning and other things to do, most of students suffer of tiredness and fatigue due to lack of sleep and busy lifestyle. Hence, Lullaby Electrical Enterprise’ home appliances provides an aromatherapy which can increase the oxygen level in the house and provide a good healthy lifestyle for students. Lullaby Electrical Enterprise will target small to medium sized companies and government organizations within around of Malaysia including Sabah and Sarawak state. Lullaby Electrical Enterprise will seek major contracts with small and medium sized firms. Those contracts will be served with the assistance of strategic alliances, both with other home appliances companies such as Vend O Matic Sdn Bhd and Arc Machinery Malaysia Sdn Bhd, as well as other professional groups. 6

This will give the company the flexibility it needs to successfully secure and complete home appliances production with varying elements. By using existing contracts and joint ventures with other consulting firms, Lullaby Electrical Enterprise is in a position to corner the home appliances market in Southern Asian Region. By year 3, Lullaby Electrical Enterprise will expand to other markets such as East Asian Region such as South Korea, China and Japan. Since Lullaby Electrical Enterprise’ home appliances beneficial towards human health, the plan to sell these home appliances is not limited towards students only but it is worldwide and can be used for anybody with different background of social or work environment.

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CHAPTER 3 PURPOSES OF BUSINESS PLAN

This business plan is prepared by ProtactWorld Enterprise for these purposes:

1. To serve as an Action Plan 2. To serve as a Road Map 3. To serve as a Sales Tool

1) Action Plan The business plan would help staff or workers of our company as a guideline for any actions besides acts as a dynamic blueprint for running and expanding the business today as well as in future. This business plan contains all of important information, manpower and estimation of financial for our business. Apart from that, the business plan is totally will remind our staffs on how and why are we started the business, what are the main goals and how does the business will affect our company’s vision.

2) Road Map The business plan can be a valuable tool to help our staff to keep on track and moving in the right and correct direction. Besides, it would help staffs to keep focused on our main goal of business. This business plan also can serve us to understand our vision, suppliers, customers, employees, and cliques.

3) Sales Tool Our staff will probably need outside financing to start the business and this is a right tool that we need to convince investor to come on board. Furthermore, we also need concessions from the suppliers or customers. Thus, this business plan can help our staff to attract more people to invest. Last but not least, this business plan can serve as attractor to let people more close to us on the benefits of proceeding our business’s concept.

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CHAPTER 4 BACKGROUND OF THE BUSINESS

1.

Name of the Company

: Lullaby Electronic Sdn Bhd

2.

Business Address

:

3.

Correspondence Address

:

4.

Contact Number

:

5.

Form of Business

: Selling a multipurpose clock jar

6.

Main activity

: Producing, packaging and marketing multipurpose jar with an aromatherapy scent.

7.

Date of Business Commencement

: 2nd November 2016

8.

Date of Business Registration

: 2nd November 2015

9.

Registration Number SSM

: MA0215506-A

10.

Name of Bank

:

11.

Bank Account Number

:

12.

Percentage of Bumiputera’s share

:

23.5 %

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CHAPTER 5 BACKGROUND OF PARTNER i.

General Manager

Shareholder Name : Muhammad Anas Bin Mohamad Azmi Ic Number : Address : Tel : E-Mail : Date Of Birth : 16 May 1995 Age : 22 Marital Status : Single Academic Qualification : Sijil Pelajaran Malaysia (Spm) Skills : i am very good with it technology and i have an excellent leadership value Experiences : I use to help my father, fixing the electronics. Percentage of Share: 30% Shareholder’s status: Bumiputera

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ii.

Assistance Manager

Shareholder Name : Nabilah Binti Nordin Ic Number : Address : Tel : E-Mail : Date Of Birth : 14 June 1995 Age : 22 Marital Status : Single Academic Qualification : Sijil Pelajaran Malaysia (Spm) Skills : Has an excellent skills with customer and friendly. Experiences : Have an experience working at 7eleven for several month. Percentage of share: 20% Shareholder’s status: Bumiputera

iii.

Production Executive 11

Shareholder Name : Siti Hajar Mohamed Ic Number : Address : Tel : E-Mail : Date Of Birth : 18 November 1995 Age : 22 Marital Status : Single Academic Qualification : Sijil Pelajaran Malaysia (Spm) Skills : i can sew and cook. I am also very friendly with customer. Experience : i have an experienced of working in a book store Percentage of Share: 20% Shareholder’s status: Bumiputera

iv.

Financial Executive

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Shareholder Name : Anis Izzati Binti Mohd Kelana Ic Number : Address : Tel : E-Mail : Date Of Birth : 4 October 1995 Age :22 Marital Status : Single Academic Qualification : Sijil Pelajaran Malaysia (Spm) Skills : communication and hands on application Experience : i have an experienced working in an IT shop Percentage of Share: 10% Shareholder’s status: Bumiputera

v.

Administration Executive

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Shareholder Name : Muhammad Rusydan Haziq Bin Hashim Ic Number : Address : Tel : E-Mail : Date Of Birth : 27 December 1995 Age : 22 Marital Status : Single Academic Qualification : Sijil Pelajaran Malaysia (Spm) Skills : Can Play Sport And E-Sport Experience : No Experience Percentage of share: 10% Shareholder’s status: Bumiputera

vi.

Marketing Executive 14

Shareholder Name : Norzaitul Hanis Binti Kasim@Mansor Ic Number : Address : Tel : E-Mail : Date Of Birth : 9 April 1995 Age : 22 Marital Status : Single Academic Qualification : Sijil Pelajaran Malaysia (Spm) Skills : Self-Defense Arts And Shooting Experriences : National Level Percentage of share: 10% Shareholder’s status: Bumiputera

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CHAPTER 6 ADMINISTRATION PLAN 6.1 Introduction to the organizations i.

Company Name

Our company was given by the name of Lullaby Electronic Sdn.Bhd. Why we choose lullaby electronic? We chose lullaby electronic because our product is a 3 way lamp. Our three way lamp can be used as a sleep lamp, a clock and gives out aromatherapy scent. Thus, by using our product it can help you to sleep better and relax as if you are singing a lullaby. ii.

The primary objectives of Lullaby Electrical Enterprise are to:

- Obtain commercial financing of RM20,000 to cover start-up costs and initial operating expenses; - Generate a net profit of RM25,000 in the first year of operations by developing a strong client base and keeping overhead costs to a minimum; - Cultivate a healthy environment towards people and increase productivity in clients’ lifestyle. iii.

Mission

The company’s mission is to produce product that satisfies the needs of customers and develop the product all over Malaysia. In addition, our company mission also wants to create a creative and innovative product to build a strong brands in Malaysia. iv.

Vission

The vision of the company is to be a company that has good market and produce a high quality product that will satisfies customers need. Lullaby Electrical Enterprise will be maintained the quality, creativity and affordable price for the product and gives awareness towards human health.

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6.2 Business Project Background

The nature of our business is to create a DIY electronic product that is not only function well in our daily routine but is also healthy. The name given for our product is “fairy jar”. This special jar contains three function which are functioning as a sleep lamp, a clock and as a storage for aromatherapy oil. Our product is made homemade and is very unique. The material needed to create our fairy jar is mainly a recycle product. The numbers for the clock was also made by hand. So it gives a sentimental value to every each pattern on the jar. We also have created an aromatherapy oil that has many benefits. It is not only gives out aromatherapy scent but it is also functioning to eliminate bacteria, unpleasant odours of any kind such as cooking odours, decomposes second hand smoke and improve the overall air quality, leaving you refreshed & rejuvenated. It is also works as an insect repellent such as dust mites, mosquitoes, fleas, ants & other insects. Our aromatherapy oil has a purifying power that eliminates odour causing molecules in the air through the process of catalytic oxidation and by that increase the oxygen level. The oil contain a ceramic catalytic burner with platinum around its outer edge. The odour-causing molecules are actually attracted to the heat generated by the catalysis and then broken down (preventing it from combining). It is also perfuming your surrounding with a relaxing scent. Only by burning the oil for about 5 minutes, their fragrance will occupied your house and last for hours.

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6.3 Business Address

6.4 Location of the Business

6.5 Organization Chart

18

6.6 List of Administration Personel

19

Table 1: Administration Personal Tables Position

Number of Personal

General Manager

1

Assistance Manager

1

Financial Executive

1

Production Executive

1

Administration Executive

1

Marketing Executive

1

6.7 Schedule of Task and Responsibilities

Table 2: Schedule of task and responsibilities Position Manager

Task 

Responsibilities

A person who is planning



Responsible in managing

the strategies and policies

whole organization and

for

initiate to improve the

the

effective

organizations

process of Fairy Lamp Clock Jar

Assistance Manager



Ensure that all departments



Assure the product is

participate well with their

consistently presented in

own role and responsible.

strong, positive image to customers. 

Given

direction

leadership

toward

organzation’s strategy,

and the

mission,

goals

and

objectives. Financial Executive



Presenting business budget every year.



Responsible budgeting,

20

for projecting,

 

Managing the employee

cash

salary

determining

Prepare

a

ledger

invest

to

and

how

and

to

finance

projects.

analyzed the profit and 

loss of company,

flows

Responsible

for

providing

financial

consultations and support to clients. Production Executive

 

Make sure the production



Responsible to check the

runs smoothly

production achieve the

Make sure the product has

target market demand. 

good quality

Approve

the

product

before released to the customers Operation Executive







Identify and list all the raw



Able

to

face

risk

material required to runs

regarding the quality of

the product

the product.

A

person

who

is



Responsible

for

responsibility of ensuring

performing a variety of

that minimum resources.

duties.

Plant

out

the

overall

operations of the company Marketing Executive



A

person

who

responsible

to

plan

are



Supervising employees.

a



Identify potential markets

market strategy to make sure

the

product

were

for their company. 

Develop pricing strategy



Communicating

develop. 

Make

annual

budget

Marketing Administration Executive



Manage major asset of the production

and

administration departments in an organizations. 21

target

audiences

managing customers.

with and

6.7 Schedule of Remuneration

Table 3: Schedule of Remuneration Position

No

Monthly

EPF

SOCSO (2%)

Total Amount

Salary (RM)

Constribution

(RM)

(RM)

(12%) Manager

1

5000

600

5600

Assistance

1

3700

444

4144

1

3500

420

3920

1

3500

420

3920

1

3500

420

3920

1

3000

60

3060

6

1500

180

Manager Financial Executive Productions Executive Operation Executive Marketing Executive Staff

22

25.35

1705.35

6.8 List of Office Equipment Table 4: Table of list of Office Equipment No

Items

Quantity

Price/unit (RM)

Total cost (RM)

1

Office furniture

4 set

2000

8000

2

Fax machine

1 set

500

500

3

Computer and software

4 set

2000

8000

4

Scanner

1 set

900

900

5

Air Conditioner

2 set

2000

4000

6

Advertisement board

1 set

1000

1000

TOTAL

22400

6.9 Administration Budget Table 5: Table of Administration Budget Descriptions

Fixed Assets

Monthly Expenses

Other Expenses

Expenses (RM)

(RM)

(RM)

Building

25000

Furniture & Fitting

12000

Rental

4500

Utilities

2050

Salary

34796.10

EPF & SOCSO

3596.10

Rental Deposit

300

Utilities Deposit

250

Stationary

900

Business Registration

70 37000

Total

26959.35

1520

Total

65479.35

6.10 Organizations Budget Table 6: Table of Organizations Budget

23

Estimated Capital Expenditure

economic life (years)

Land & building

25,000

Furniture &Fittimg

12,000

None

5 5 5 5

Total

37,000

Working Capital (monthly)

Rental

4,500

Utilities

2,050

Salary

34796.1

EPF & SOCSO

3,596

24

Total

44,942

Other Expenditure (one off/annually)

Stationary

900

Utilities & Rental Deposit

550

Business Registration

70

Total

1,520

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CHAPTER 7 THE MARKETING PLAN

7.0

SUMMARY Marketing plan can be defined as outlines the specific actions entrepreneur intend to

carry out to interest potential customers and clients in our product and persuade them to buy the product offered. Our marketing plan refers to the development phase of a month, of the aromatic clock, in the Malaysia market. With quantitative and qualitative methodology of analysis, we have created an operative and strategic plan that will go along with the product towards a prosperous stage of maturity. 7.1

Product description

Name of product: Fairy Lamp Clock Jar Product description: For our lamp, we have upgraded the product so that it will be more attractive and unique. Our product is an aromatic lamp clock jar that comes in many aromas for example lavender, lemon, rose, and many more. Besides that, this aromatic lamp clock jar is beneficial towards human health which can increase the oxygen level in a room. Aromatic lamp clock jar have many design in order to attract the interest from the customer. In creating the aromatic lamp clock jar the best material was used in our product like jar, clock, glass colorings, aromatherapy oil, lamp, electrical circuit, and cotton wool. 7.2

Market Analysis and Target Market Today clock have become a global phenomenon among the people. It can be used by

all whether the person is a child or elder. Nowadays there are a lot of clock design that have been made in order to attract people to come and have it. Besides that clock is easily to used and provides punctuality toward clients. For example it can be used at room area, in the car, at the bathroom and many more. Implemented for this phenomenon, we have upgraded the clock so that it will become more attractive. For our product which is not ordinary clock, the main beneficial part is the aromatherapy. The aromatherapy was done by ourselves and the process is done thoroughly so that the oxygen can be release even after the oil was burn. They come in many aromas for example lemon, lavender, rose and many more. On top of that, to gain more interest among the people, many designs have been created to attract them to have the aromatic lamp clock

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jar. Besides that, the price of this product is affordable. Thus, it can be easily to get place in the market. For our expected market for our product are about 100 units per month of aromatic lamp clock jar to be sold in the first month. This approximation is based on our study of the clock market. This is because the clock market target, we believe that the investigations that we have carried out describe that the product is suitable for everyone. Therefore we have categories it into three which is the first one is trendy, second one is functional and lastly is for the sceptic. 

Trendy: Individuals who follow fashion trends, represented by 69%. This category represents the largest share of the target, represented by 69% and this justifies the position that we will give to the final product.



Functional: those that purchase out of necessity, represented by 10%. It may seem very low, but we must consider the fact that people do not allow the purchase to be influenced by fashion.



Sceptics: those who doesn’t know why they have bought it, represented by 21%

7.2.1 Target Market Table 7.1: The market size NUMBER OF TARGET MARKET TARGET MARKET (MONTHLY)

Functional customer

10%

Trendy customers

60%

Sceptics customer

30%

Total

100%

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Sceptic customer

Trendy customers

Functional customer

Figure 7.1 List of target market

7.3

Market Size

Total customer (1st month)

=

150 people

Estimated demand

=

100 people

Percentages buyer (%)-estimated

=

50%

Target market

=

100 people

Market Share

=

15%

Each customer buy 4 units/month at prices of RM 17/unit Market size

Sales per month

=

100 people x 4 units x RM 17/units

=

RM 6800

=

RM 6800 x 15%

=

RM 1020

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7.4

Competitors Competitors is refer to other businesses that offer similar product, substitute or

alternative products or services to the same target market. We have identify some of our competitors in order to know whom our business is sharing market with and to develop appropriate marketing strategies to compete with our rival. Apart from that, we also need to analyse the strength and the weakness of our competitors in term like the prices, the material used and many else. The list below shows our competitors who in the same area with their strength and weakness in the market: Table 7.2: Competitors Who in the Same Area with Their Strength and Weakness in The Market No

Company name

Strength

Weakness

- Many ways to sell their clock. - There is not much Malizs clock shop

Eg Instagram, shop

design

1 -

2

Diamond home appilances shop

The prices of the clock is - The material used is

affordable

not best quality.

- There are many design of clock

-

- Their service is good - Many ways to sell their clock. Eg Instagram, shop

3

Others shop

The

clock

expensive. -

Their service is

slow.

-The material used is best quality

-Terrible service

-The prices is low

-There is not much design

- The material used is best quality - Many ways to sell their clock. Eg Instagram, shop 4

is

Fooo design - The prices of the clock is affordable

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-New in the Market

7.5

Market Share Market share is refer to the portion of the market that the business can control after

taking into consideration market size and the competitors position the same market. Our company which is Fooo design has identified 3 main competitors which are Malizs clock shop, Diamond home appilances shop and other shop that sold clock. Each of the compatitors control a percentages of the market as shown below. Table 7.3: Market share before entry of Fooo design Competitor

% Market share

Market size

Malizs clock shop

20%

RM 2400.00

60%

RM 3500.00

Other shop

20%

RM 1000.00

Total

100%

RM 6900.00

Diamond home appilances shop

After analyzing the competitor’s strength and weakness, our company confident to control about 26% of the market. This is based on our strength in term of the prices, the design, the material used in order to gain the interest of the customer.

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Table 7.4: Market share after entry of Fooo design Competitor

% Market share

Market size

Malizs clock shop

15%

RM 1290.00

40%

RM 3500.00

Other shop

20%

RM 1720.00

Fooo design

35%

RM 3000.00

Total

100%

RM 8600.00

Diamond home appilances shop

Before entering the business, Diamond home appilances shop took about 60% of the market share followed by malisz clock and other shop with 20% and 20% respectively. Estimated market share for Fooo design is 35%. This will mean the existing competitors (Malizs clock shop, Diamond home appilancesshop and other shop that sold clock) will lose of some their market after the entry of Fooo design.

7.6

Marketing Strategy In the business, to start a company is not an easy task. This is because we have to

make sure that the operation of our business run smoothly until we reach our business goals. In order to make sure that our business to continue to operate, marketing strategies are important to attract customers to continue to spend their money at our shop.

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As our business, our main priority is to give satisfaction to our customers while to gain their trust with our best service. By doing so, we will able to gain our customer trust and therefore they would come again to our shop to buy our aromatic clock. Our marketing strategies consist of 4Ps which are: 1. Price 2. Place 3. Promotion 4. Sales promotion

7.6.1 Prices Pricing is the process of determining the value of the product to the customer at particular amount of money in term of ringgit Malaysia and cents. Once services have been given, the values of the services and product need to be determined. The prices strategy is important to make sure that the company would provide a reasonable prices to the customer while to ensure that company can gain profits from the sales. Based on our product, our prices is slightly cheaper than our competitor because we provide discount to our loyal member and also to student. Besides that, the prices we provide is affordable as all the material used is best quality.

7.6.2 Places For places to sales our product, for now we are using online business such as Instagram and at our company. There are few aspect that we had considered in choosing our sale location. 1. Strategic Our shop is located at the centre of Alor Gajah city. Besides that it near with school and university which is easy to be access. 2. Online shopping

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As we know nowadays, people love to buy anything via online mechanism for example in lazada, Instagram and many else. Thus, in order to increase our production we have choose to open one Instagram profile so that we sell our products there.

7.7.3 Promotion An effective promotion is one of most important things in operating the business in order to introduce the existence of the product and services. By doing so, we can increase the production after the business is noticed by customer. For our company, a few medium we have used in order to promote our product to customer which is by: 

Signboard



Business card



Pamplets



Social networking website

7.7.4 Sales Promotion For our company, every new design out, we will give 10% discount for the first 10 early person buy that design. Besides that, if our customer buy 4 of our product, the price only RM 10.00 compare to if they buy one it will cost RM 3.00 per units. It’s very affordable and it will satisfied the customer.

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7.8

Marketing Budget Table 3.5: Marketing Budget

Type

Signboard

Fixed Asset (RM)

Monthly Expenses

Other Expenses

(RM)

(RM)

500.00

Salaries (EPF&SOCSO)

2980.00

(Advertisement)

1000

Grand Opening

TOTAL

1000

500.00

2981.00

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1000.00

CHAPTER 8 OPERATIONAL PLAN

8.1 Process Flow Diagram for the Making of Aromatherapy Oil

Manufacturing of this Fairy Lamp Clock Jar used four materials such as glass jar, quartz clock mechanism, light bulb and aromatherapy oil. For aromatherapy oil, there are several steps to process it. 150mL of aromatherapy oil for one unit of Fairy Lamp Clock Jar.

Process of 150ml Of Aromatherapy Oil.

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8.1.1 Process Description for the Making of Aromatherapy Oil Step 1: Peel the outer part of three until four of lemons. Step 2: Mix the lemons peel with carrier oil (coconut oil), then double boiler the mixture to extract the oil. Heat with low temperature for two until three hours. Step 3: Strain out oil by using strainer. Squeeze well to get lemon oil extract. Step 4: Ready to put the extract oil into a bottle. After that, for the making of Fairy Lamp Clock Jar, the materials that used to make it were mentioned above. To make this Fairy Lamp Clock Jar, there are a few steps.

Step 1: Wash the glass jar with warm soapy water. Rinse the jar and then wipe it dry. Step 2: Put the quartz clock mechanism into the glass jar (place it at the bottom of glass jar) by using hard glue. Before that, bend the hands of the clock at a 90 degree angle. Step 3: Screw up the light bulb at the cover of glass jar. Step 4: Put the aromatherapy oil inside the glass jar. Step 5: Decorate the glass jar with number and etc. Finally, the Fairy Lamp Clock Jar ready to use.

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8.3 Units Output of Operation





Unit of product per day Day/Month

Unit output

1 day operation

30 units

23 days operation (1 month)

690 units

Hours of service Day/Month

Hours of service

1 day operation

12 hours

23 days operation (1 month)

276 hours

Time

Activities

8.00 a.m – 4.00 p.m

Preparation Process

4.00p.m - 6.00 p.m

Testing Process

6.00 p.m – 8.00 p.m

Delivery Process

37

8.6 Operation Organization

Process Executive

Supervisor

Logistic

Operator

Figure 1 Operation Organization Chart

38

Quality and Maintenance

8.6.1 Schedule of Task and Responsibilities of Operation Staffs Position Process Executive

Job Description 

Give instruction to the supervisor in operation process



Who responsible build the process system in the factory



Control the production of product



Keep the file of production process, cost operation, maintenance to the administration

Supervisor



Ensure the all plant in factory run as the procedure



Ensure the raw material always sufficient



Take action to the operator, logistic and maintenance problem



Do the audit of operation, maintenance and transportation

Logistic



Transfer the product to the market

Operator



Make sure the process operation run wells.

Quality and Maintenance



Do the maintenance of equipment



Do the checklist of the performance of production



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Testing the quality of product

8.7 Operation Budget

Table 8.1 Total Budget for Operation Asset

Unit

Cost(RM)

Factory Land Rental

5000

Deposit

2000

Total

7000

Staff Salary(RM)

No of Person

Cost(RM)

Supervisor 2000

1

2000

Logistic staff 1500

2

3000

Maintenance staff 1500

2

3000

Operator Staff 1500

1

1500

Total

9500

Raw Material Unit (1 Month)

Cost Per Unit

Cost(RM)

(RM) Glass Jar

690

4.00

2760

Quartz Clock

690

9.00

6210

Light Bulb

690

2.00

1380

Aromatherapy Oil

690

10.00

6900

mechanism

Others

1500

Total

18750

Transportation

8000

(Lorry) Utilities

800

Packaging material

1500

Maintenance

1000

40

Business license and

3500

insurance Others

1500

Total

16310

OVERALL

51560

TOTAL

Table 8.2 Total Purchase Forecast for Operation

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CHAPTER 9 FINANCIAL PLAN

9.0 Financial Plan 9.1 Introduction Financial Planning is the process of estimating the capital required and determining it competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise. One of the most important finance functions is to intelligently allocate capital to long term assets. This activity is also known as capital budgeting. It is important to allocate capital in those long term assets so as to get maximum yield in future. There are two aspects of investment decision which are: evaluation of new investment in terms of profitability and comparison of cut off rate against new investment and prevailing investment. 9.2 Objectives 

To enables students to prepare relevant statements for the financial plan.



To enables students to develop the skills of preparing a financial plan.



To help students in evaluating the financial viability of the proposed business or project.

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9.3 Project Implementation

LULLABY ELECTRICAL & ENTERPRISE PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE Project Implementation Cost

Requirements

Sources of Finance

Cost

Loan

Hire-

Own Contribution

Purchase Fixed Assets

Cash

Existing F. Assets

Land & Building Office Equipment

21400

Furniture/fitting

12000

12000

Signboard

1,000

1,000

Vehicle (Lorry)

8000

1

Working

21400

5000

3000

months

Capital Administrative

65479.35

40000

25479.35

Marketing

19313

9313

10000

Operations

48560

18000

30560

3000

1000

2000

6889

1889

5000

1856410.3

70202

Pre-Operations & Other Expenditure Continge

3%

ncies

TOTAL

5

43

5000

94039.3

21400

9.4 Operating Budget 9.4.1 Administrative

ADMINISTRATIVE BUDGET Particulars

F.Assets

Monthly Exp.

Others

Total

Fixed Assets

Land & Building

-

-

Office Equipment

21400

21400

Furniture/fitting

12000

12000

Working Capital

Salaries,EPF,and SOCSO

3596.10

3596.10

Utilities Bill

2050

2050

Rent

4500

4500

Office Stationary

900

900

Pre-Operations & Other Expenditure Other Expenditure

-

Deposit (rent, utilities, etc.)

550

550

Business Registration & Licences

3500

3500

1,500

1,500

-

-

2120

46566.1

Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Total

33400

44

11046.1

9.4.2 Marketing

MARKETING BUDGET Particulars

F.Assets

Monthly

Others

Total

Exp. Fixed Assets

Signboard

1,000

1,000

Vehicle (Van)

8000

8000

Working Capital

Salaries, EPF & SOCSO

13,626

13,626

Promotion

4,187

4,187

Fuel

1,500

1,500

Pre-Operations & Other Expenditure Other Expenditure

2,500

Deposit (rent, utilities, etc.)

-

-

Business Registration & Licences

-

-

1,500

1,500

1,250

1,250

5,250

31063

Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Total

9000

45

19,313

9.4.3 Operations

OPERATIONS BUDGET Particulars

F.Assets

Monthly

Others

Total

Exp. Fixed Assets Machines and Equipment

10000

10000

Renovation

5000

5000

Working Capital Raw Materials

18750

18750

Carriage Inward & Duty

750

750

Salaries, EPF & SOCSO

9500

9500

Utilities

800

800

Machine Maintainance

1000

1000

Diesel and transport

8000

8000

Shop rent

5000

5000

Pre-Operations & Other Expenditure Other Expenditure

300

Deposit (rent, utilities, etc.)

-

-

Business Registration & Licences

-

-

Insurance & Road Tax for Motor Vehicle

-

-

Other Pre-Operations Expenditure

-

-

300

58800

Total

15000

46

43800

CHAPTER 10 JUSTIFICATION

Business plan encourages the build up of better business management of a company. The exposure to the business strategy, management and budgets inspired the employee or staff the key to success in the future to the business involvement. The main target of the business is to introduce our product to the market within the country and worldwide could be achieved with the strategic business plan. Lullaby Electrical and Enterprise has put in all effort in order to increase our quality and quantity in term of production, development and customer services. The business plan will become a guideline for Lullaby Electrical and Enterprise to improve the business in future over the years

Lullaby Electrical and Enterprise consists of six partnerships or shareholders willing to provide our friendly and committed services to achieve the set target of business as state in the short and long goals of company. Each members of the organization had played their main roles in administration, operational, marketing and financial of the company efficiently. Our company will strengthen the skills, efforts and idea in order to achieve the targeted goals as well as improving the quality of the product. Lullaby Electrical and Enterprise will find the opportunity to introduce the business in worldwide by looking forward the quality and quantity of the product by customer’s satisfaction. Last but not least, the partnerships do hope that Lullaby Electrical and Enterprise will grow as premier Multi-purpose lamp clock jar in the country as well as worldwide too.

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CHAPTER 11 CONCLUSION

In a nutshell, the business plan encourages the build-up of better business management and act as a guideline for managing the business. Furthermore, exposure to the business strategy, management, and budget inspired each of us the key to success in future involvement in business. Hopefully our product has expanding potential to be in worldwide market. Lullaby Electrical and Enterprise is offering a

new variety of fragrance which come

in multi-purpose lamp clock jar. Aromatic multi-purpose lamp clock jar will conquer fragrance market segment due to its reasonable price, long lasting fragrance aroma, and portable which we can be put everywhere. This product is worthy of finance when it is come to the end. Lastly, this product is suitable for everyone around the world especially among the students and busy workers often experienced stress because the scents from the lamp clock jar can sooth their stress from work.

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