DONUT SHOWDOWN

1.0
INTRODUCTION

1.1 INTRODUCTION TO THE INDUSTRY

52
 DONUT SHOWDOWN

We have decided to establish a company that consists of four (4) shareholders. Each
one of them is appointed based on their experience and skill such as General Manager,
Administration Manager, Operation Manager, Marketing Manager, and Financial Manager.
The purpose of choosing the business is to provide varieties of doughnut flavours based on
Asian personal taste.

Our proposal is to help any entrepreneur making our proposal as a guideline to the
organization in order to execute any businesss activity. Besides that, it is used to convince
certain party, for instant the bank in order to give a businesss loan. As a measure in
determining either the business is profitable or otherwise.

We hope our proposal can give more return and advantages, especially putting it to a
good use. As a company that is based on food industry, marketing plan is vital in order to
improve the efficiency and the companys sale as well. We are concentrating in Bandar
Melaka, which is within area of Melaka, and the surrounding within the radius of 20km from
our location, as our target market.

Our prices are reasonable and quite cheap in order to attract customers. The
reasonable prices strategy that we implement will set the sales figures to increase, and this
will lead to a long term profit.

Finally, we are expecting to start our business operation on the middle of 2016
because we can ensure that everything is carefully planned. Hopefully, by that time we can
attract the attention of urban area and students from Universiti Teknologi Mara (UiTM) and
other colleges as much as we possibly could.

1.2 OBJECTIVE AND PURPOSE OF BUSINESS PLAN

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 1.2.1 Business Objectives

i- To provide 100% customers satisfaction through our innovation in 2 years time.

ii- To achieve 99.99% efficiency of our business services and activities in 3 years time.

iii- To obtain 80% of Malaysias target market through our branches in 5 years time.

1.2.2 Business Plan Purpose

i- As a roadmap towards building a successful business.

ii- As a guideline for our business operations.

iii- To distribute business resources more effectively.

iv- To attract bankers, lenders and investors in order to raise capital and obtain support
for the venture.

1.3 BACKGROUND OF THE BUSINESS

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Name of the Business/Company : DONUT SHOWDOWN

Business Address : NO 7, JALAN LAGENDA 2/15, LORONG

KENANGA INDAH, 75200 MELAKA

Contact Number : 06-3360350 (fixed line), 05-5912923 (fax)

E-mail : donutforlife@gmail.com

Form of Business : Partnership

Main Activities and Services : Selling variety of donuts

Date of Registration : 10th February 2016

Date of Commencement : May 2016

Business Registration Number : 5A0102693-M

Bank : Maybank

Account Bank Number : 162021474246

Total Capital Contributed from partners : RM 120, 000

Total Loan : RM 15,000

1.4 COMPANY NAMES DESCRIPTION, LOGO AND MOTTO

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Company Names Description

DONUT : Small fried cake of sweetened dough, typically in the shape of a ball or ring.

SHOWDOWN : A conclusive settlement of an issue, difference, etc., in which all resources,

power, or the like, are used; decisive confrontation

Company Logo

Company Motto

DONUT WORRY, BE HAPPY.

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Logo Description

1) Black and pink Unique combinations of donut with different fillings and colors.
2) Picture of donut Represent that delicious and appetizing of our donut.
3) Donut showdown Represent the innovation towards our donut that are different from
other competitors.
4) Moto Donut worry, be happy is the main attraction.
5) Round shaped background Display the shape of out donut.

1.5 SHAREHOLDER BACKGROUND

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1.5.1 GENERAL MANAGER

NAME OF THE PARTNER : NURUL AMIRAH BINTI AHMAD

IDENTITY CARD NUMBER : 910401-04-5268
PERMANENT ADDRESS : NO 38, LORONG ENGGANG 7 KERAMAT, 43220
KUALA LUMPUR
CORRESPONDENCE ADDRESS : NO 38, LORONG ENGGANG 7 KERAMAT, 43220
KUALA LUMPUR
EMAIL ADDRESS : myra_ahmad96@yahoo.com.my
TELEPHONE NUMBER : 017-2339018
DATE OF BIRTH : 1 APRIL 1991
AGE : 25 YEARS OLD
MARITAL STATUS : MARRIED
ACADEMIC QUALIFICATION : 1. FOUNDATION IN SCIENCE, UM
2. BACHELOR IN SPORTS SCIENCE, UITM
3. MASTER IN BUSINESS MANAGEMENT,
UITM
COURSE ATTENDED : 1. MARKETING POWER, DR. AZIZAN
2. SEMINAR PERNIAGAAN ECPI

SKILS : ABILITY IN MANAGING AN ORGANIZATION

EXPERIENCE : 3 YEARS EXPERIENCE IN CONDUCTING BAKING
SEMINAR

CURRENT OCCUPATION : A LECTURER IN BUSSINESS MANAGEMENT, UM

PREVIOUS BUSINESS A DEALER OF BAKING EQUIPMENTS DIRECTLY
EXPERIENCE : FROM SUPPLIER
1.5.2 ADMINISTRATING MANAGER

44
NAME OF THE PARTNER : NURUL AMIRAH BINTI AHMAD
IDENTITY CARD NUMBER : 910401-04-5268
PERMANENT ADDRESS : NO 38, LORONG ENGGANG 7 KERAMAT, 43220
KUALA LUMPUR
CORRESPONDENCE ADDRESS : NO 38, LORONG ENGGANG 7 KERAMAT, 43220
KUALA LUMPUR
EMAIL ADDRESS : myra_ahmad96@yahoo.com.my
TELEPHONE NUMBER : 017-2339018
DATE OF BIRTH : 1 APRIL 1991
AGE : 25 YEARS OLD
MARITAL STATUS : MARRIED
ACADEMIC QUALIFICATION : 4. FOUNDATION IN SCIENCE, UM
5. BACHELOR IN SPORTS SCIENCE, UITM
6. MASTER IN BUSINESS MANAGEMENT,
UITM
COURSE ATTENDED : 3. MARKETING POWER, DR. AZIZAN
4. SEMINAR PERNIAGAAN ECPI

SKILS : ABILITY IN MANAGING AN ORGANIZATION

EXPERIENCE : 3 YEARS EXPERIENCE IN CONDUCTING BAKING
SEMINAR

CURRENT OCCUPATION : A LECTURER IN BUSSINESS MANAGEMENT, UM

PREVIOUS BUSINESS A DEALER OF BAKING EQUIPMENTS DIRECTLY
EXPERIENCE : FROM SUPPLIER

1.5.3 MARKETING MANAGER

NAME OF THE PARTNER : AIN NAJWA BINTI MAHADZIR

IDENTITY CARD NUMBER : 910523-14-5486
PERMANENT ADDRESS : LOT 103(A) KG LINTANG, SG SIPUT (u) PERAK.
CORRESPONDENCE ADDRESS : LOT 103(A) KG LINTANG, SG SIPUT (u) PERAK.
EMAIL ADDRESS : ainnajwa@yahoo.com.my
TELEPHONE NUMBER : 017-7103271

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DATE OF BIRTH : 23 MAY 1991
AGE : 25 YEARS OLD
MARITAL STATUS : SINGLE
ACADEMIC QUALIFICATION : MASTER IN BUSINESS MARKETING, UNIVERSITY
OF SHAFFIELD U.K,
COURSE ATTENDED : SEMINAR MARKETING BY DR. AZIZAN
SKILSS : HIGH KNOWLEDGE ABOUT MARKETING
EXPERIENCE : EXPERIENCES AS MARKETING EXECUTIVE AT
KARANGCRAFT SDN BHD (2YEARS)
CURRENT OCCUPATION : LECTURER AT UITM
PREVIOUS BUSINESS
EXPERIENCE : NONE

1.5.4 OPERATING MANAGER

NAME OF THE PARTNER : NUR IZZA ZAFIERAH BINTI ZUHAILI

IDENTITY CARD NUMBER : 910928-10-6274
PERMANENT ADDRESS : NO 26, TAMAN KANCIL 2, LORONG SETAPAK,
43320 KUALA LUMPUR
CORRESPONDENCE ADDRESS : NO 26, TAMAN KANCIL 2 LORONG SETAPAK, 43320
KUALA LUMPUR
EMAIL ADDRESS : izzazafierah@yahoo.com.my
TELEPHONE NUMBER : 0174152075
DATE OF BIRTH : 28 SEPTEMBER 1991
AGE : 25 YEARS OLD

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MARITAL STATUS
ACADEMIC QUALIFICATION
COURSE ATTENDED
SKILS
EXPERIENCE
CURRENT OCCUPATION
PREVIOUS BUSINESS
EXPERIENCE
1.5.5 FINANCIAL MANAGER
NAME OF THE PARTNER
IDENTITY CARD NUMBER
PERMANENT ADDRESS
CORRESPONDENCE ADDRESS :
EMAIL ADDRESS
TELEPHONE NUMBER
DATE OF BIRTH
AGE
MARITAL STATUS
ACADEMIC QUALIFICATION : i-
COURSE ATTENDED
EXPERIENCE
: MARRIED
: 1. FOUNDATION OF SCIENCE, UiTM
2. BACHELOR IN PROJECT MANAGEMENT,
UiTM
3. MASTER IN INTERNATIONAL BUSINESS,
UITM
: MARKETING POWER, DR. AZIZAN
: EXPERTISE IN MACHINERIES
: WORK AS A SUPERVISOR AT SECRET RECIPE
FOR 2 YEARS
: NONE
NONE
:
: NUR SYAFIQAH BINTI ABD RAZAK
: 911017-14-6202
: NO 13, JALAN CONGKAK 11/1D 40100 SHAH
ALAM SELANGOR DARUL EHSAN
NO 13, JALAN CONGKAK 11/1D 40100 SHAH
ALAM SELANGOR DARUL EHSAN
: fyyrazak@yahoo.com.my
: 013-3172334
: 17 OCTOBER 1991
: 25 YEARS OLD
: MARRIED
CERTIFIED ACCOUNTING
TECHNICIAN(CAT)
ii- ASSOCIATION OF ACCOUNTING
TECHNICIAN (ACCA)
: NONE
: i- 2 YEARS OF EXPERIENCE AS JUNIOR
44

CURRENT OCCUPATION
AUDITOR AT TERNST & YOUNG
ii- 2 YEARS EXPERIENCES WORKING AT
SHELL COMPANIES AS FINANCIAL
CONTROLLER
: LECTURER

1.6 PARTNERSHIP AGREEMENT

This agreement was made between the following personnel:

NAME : NURUL AMIRAH BINTI AHMAD

IC NUMBER : 910401-04-5268

POSITION : GENERAL MANAGER

CAPITAL : RM 24, 000 each

NAME : NURUL AMIRAH BINTI AHMAD

IC NUMBER : 910401-04-5268

POSITION : ADMININSTRATION MANAGER

CAPITAL : RM 24, 000 each

NAME : AIN NAJWA BINTI MAHADZIR

IC NUMBER : 910523-14-5486

POSITION : MARKETING MANAGER

CAPITAL : RM 24, 000 each

NAME : NUR IZZA ZAFIERAH BINTI ZUHAILI

IC NUMBER : 910928-10-6274

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POSITION : OPERATION MANAGER

CAPITAL : RM 24, 000 each

NAME : NUR SYAFIQAH BINTI ABD RAZAK

IC NUMBER : 911017-14-6202

POSITION : FINANCIAL MANAGER

CAPITAL : RM 24, 000 each

Due to this agreement of partnership, it can be stated that:

i- This business is given DONUT SHOWDOWN as the name, which provides foods
and services for the customers.

ii- Each company shareholder is entitled to receive company salary and incentive as
rewards for their involvement in the company

iii- Resignation notice must be made within 30 days period before the resignation.

iv- Any decision is only accepted with the authorization from the General Manager.

v- If any shareholder want to resign or retire from the company with concrete reason,
therefore the company will return back their shares, unless, that person wants to
sell his or her shares.

For the witness of this agreement, therefore the company shareholders need to design the
agreement in front of the witness on the date when this proposal is declared.

Yours faithfully,

44


NURUL AMIRAH BINTI AHMAD

910401-04-5268

GENERAL MANAGER

2.0
ADMINISTRATION
PLAN

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2.1 INTRODUCTION

2.1.1 VISION

DONUT SHOWDOWN is aimed to be strong bumiputra company which provides quality and
excellent donuts all over Malaysia in order to meet the market demand in 5 years from the
date it established.

2.1.2 MISSION

The mission is to be one of the companies that will be recognized worldwide. We also
attend to serve best quality flavoured donut with affordable price.

2.1.3 BUSINESS GOAL

i- To extend our branch all over the main cities in Malaysia by 2017.
ii- To be the number 1 choice of donut provider for Malaysians.
iii- To educate the Malaysian about variety of donut.

2.1.4 OBJECTIVE

Justly to compensate the employers and owners of DONUT SHOWDOWN.

i- Contribute to the development and growth of the countrys economy and to increase
the percentage of Bumiputra involves in business.

ii- To create productivity among employees.

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 iii- To provide the best quality of every single donut in order to gain repeated and loyal
customers.

2.2 TYPE OF BUILDING AND INFRASTRUCTURE

Among the facilities that are provided at our project site are :

1) Office

2) Musalla

3) Toilet

We have chosen a project site which has all the necessary facilities and infrastructure
as a catalyst for the growth and development of our business, DONUT SHOWDOWN. Our
business is situated only 15 minutes from Mahkota Parade.

Among the many infrastructures that can be seen at our project site are:

i- A good road linkages system where it can facilitate the customers to visit frequently to
our shop, purchase and engage with our services. It will also make it more convenient
for the suppliers to come and supply the equipments needed by our company.

ii- Electricity power supply has already been provided by Tenaga Nasional Berhad at
Bandaraya Melaka, Melaka.

iii- Telephone line has already been made available by the Telekom Malaysia Berhad and
also water supply from the Syarikat Air Bekalan Berhad Sdn Bhd at Bandaraya
Melaka, Melaka.

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2.2.1 OFFICE LAYOUT

Administrat
Operating Marketingion
Manager Manager Manager General
Manager

Financial
Manager

Meeting
Room

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2.2.2 LIST OF ADMINITRATION PERSONNELS

POSITION NUMBER OF STAFF

General Manager 1
Administration Manager 1
Marketing Manager 1
Operation Manager 1
Financial Manager 1
Labor Worker 3
Cashier 1
Driver 1
TOTAL 10

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2.3 ORGANIZATION CHART

NURUL
NURUL AMIAMIRRAHAH BTBT
AHMAD
AHMAD
((GGENERAL
ENERAL MANAGER)
MANAGER)

NUR
NUR IIZZZAZA NURUL AMIRAH
NUR
NUR SYAFI
SYAFIQQAHAH BTBT AIAINN NAJWA
NAJWA BTBT ZAFI E RAH BT NURUL AMI R AH
ABD ZAFIERAH BT BT AHMAD
ABD RAZAKRAZAK MAHADZI
MAHADZIRR ZUHAI L I BT
ZUHAILI (ADMINISTRATIVE AHMAD
((FFIINNANCI
ANCIAALL ((MMARKETIARKETINNGG ((OOPERATI O N ( A DMI N I S TRATI V E
MANAGER) MANAGER) PERATION MANAGER)
MANAGER) MANAGER) MANAGER)
MANAGER) MANAGER)

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2.4 SCHEDULE OF TASKS AND RESPONSIBILITIES

POSITION RESPONSIBILITIES

To form the objectives, planning strategies and

GENERAL MANAGER monitor the organization policies and also as
(NURUL AMIRAH BT AHMAD mastermind in an organization.
To plan and monitor the strategic progress of
the business

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ADMINISTRATION MANAGER
(NURUL AMIRAH BT AHMAD)
OPERATING MANAGER
(NUR IZZA ZAFIERAH BT
ZUHAILI)
MARKETING MANAGER
(AIN NAJWA BINTI MAHADZIR)
FINANCING MANAGER
(NUR SYAFIQAH BINTI ABD
RAZAK)
To maintain good communications skill and
relationship government, private sector,
customer and also financial institution.
Ensure all activities to run smoothly using the
proper procedure.
Able to cooperate and interact with people.
To carry out interview for workers and to
evaluate the workers performance.
Ensure that all the business objective will be
achieve.
To plan administration system and ensure it
become efficient and effective.
To ensure the flow stock runs smoothly without
having any shortage in the supply stock.
To ensure the quality of product.
Plan out the program that will be done.
To identify the marketing target, current market
and determine the strategy which is suitable to
be used.
To prepared marketing analysis and observe
the strategic location to expand the business.
Doing consistent promotions ensure the sales
reach the objectives.
To find out the steps and effort needed to be
done systematically to smoothly increase in the
sales.
Arrange the set of services and education that
will be offer.
Prepared cash flow, trading profit and loss
account and also the balance sheet for the
company.
To manage all financial management.
To handle the administration, operations and
marketing expenses in order for the business to
be financially stable.
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 Responsible to the entire activities that involves
the company finance.
Loading and unloading stocks.
LABOUR WORKERS Packaging products.
Manage daily sales transactions.
CASHIER Manage and arrange stock at premise.
To deliver the product to the customer by
DRIVER companys vehicle.

2.5 SCHEDULE OF REMUNERATION

POSITION NO. MONTHLY EPF SOCSO AMOUNT

SALARY CONTRIBUTION (2%) (RM)
(RM) (13%)
General Manager 1 2,500 325 50 2,875

Administration 1 1,800 234 36 2,070

Manager
Marketing 1 1,800 234 36 2,070
Manager
Operation 1 1,800 234 36 2,070
Manager
Financial Manager 1 1,800 234 36 2,070

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 TOTAL 5 9,700 1,261 194 11,155

2.6 LIST OF OFFICE EQUIPMENTS AND SUPPLIES

2.6.1STATIONARY

ITEM QUANTITY COST PER UNIT TOTAL

(RM) (RM)
A4 paper 5 rim 8.50 42.50
Calculator 5 4.90 24.50
Duster 1 2.00 2.00
Eraser 5 0.20 1.00
File 10 1.50 15.00
Glue 5 1.00 5.00
Marker pen 1 2.50 2.50
Pen 10 1.20 12.00
Pencil 10 1.00 10.00
Ruler 5 0.20 1.00
Rubber stamp 5 2.00 10.00

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Stamp Pad 5 7.00 35.00
Stapler 5 1.50 7.50
Total 72 33.20 168.00

2.6.2 OFFICE EQUIPMENT AND FURNITURE

ITEM QUANTITY PRICE/PER UNIT TOTAL COST

(RM) (RM)
Printer 1 200 200

Telephone 1 95 95

Fax 1 365 365

Photocopy machine 1 3,688 3,688

Computer 1 2,500 2,500

TOTAL 6,848 6,848

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2.6.3 FURNITURE, FIXTURE AND FITTINGS

NO. ITEM QUANTITY PRICE/UNIT TOTAL COST

(RM) (RM)
1 Square table 5 unit 170 850
2 Office chair 5 unit 60 300
3 Air conditioner 7 unit 2200 15400
4 Executive table + chair 1 set 500 500
5 Meeting table + 6 chair 1 set 1400 1400
6 First aid kit 1 unit 40 40
7 Multipurpose cabinet 2 unit 400 800
8 Dustbin 1 unit 25 25
9 Fire extinguisher 2 unit 130 260
10 Sofa 1 set 999 999
TOTAL 6,124 20,574

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2.7 PRE OPERATIONAL BUDGET

ITEM RM
Business license:
Process RM 10
Retail shop RM 100
Processing RM 400
Lighting billboard (20m 4m) RM 130
Dustbin RM 160
Apron RM 25
Picture RM 3
Patil RM 10
Food handling certificate 6 person RM 300
Injection book 6 person RM 30
Injection 6 person RM 180 1338
Business registration 60
Fire insurance 200
Stamp duties 10
TOTAL 1608

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2.8 UTILITIES EXPENSES

ITEM RM
(for 2 months)
Water deposit 100
Electricity deposit 360
Telephone deposit 220
Rental deposit 6,600
TOTAL 7,280

2.9 ADMINISTRATIVE BUDGET

Fixed Assets
Items Expenses Monthly Expenses Others Expenses
(RM) (RM) (RM)
Renovation and 10,000
construction
Office Equipment 6,848
Furniture, fitting and 20,574
fixture
Salaries 9,700
EPF 1,261
SOCSO 194
Water bill -
Electricity bill -
Telephone bill -
Water deposit 100
Electricity deposit 360
Telephone deposit 220
Business Registration & 1608
License
Rental deposit 6,600
Stationery 168
TOTAL 37,422 11,155 8,888

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 3.0
OPERATION PLAN

3.1 OPERATION MANAGEMENT

44
 Operation management can be defined as the process of marshalling resources to
produce output through the transformation process. The operation process comprises three
main components, for example business input, transportation and output.

Business input refers to all resources required to produce a particular output.

Examples of input are manpower, raw materials, machines and equipment, technology,
information and capital. The transformation system refers to the activities involved in
transforming input into output. Among others, the process system involves planning of raw
materials, designing of operational process, planning of floor layout and distributing of
manpower in the organization. Output refers to the end product created as the result of
transformation process. Business output can be categorized into their products or services.
As input is transformed into output, it acquires added value, whereby the value of the output
is higher than the total input value.

Our purpose focus in operational plan is to ensure that foods provided by our
company is high quality to fulfil our customer needs and wants. With the quality, exact time
and place we planned at the lowest cost but give an optimum profit, which will avoid
misspend money. It also to recognize and list down all the materials needed to effort by
making some arrangement for the quantity and quality of material needed and recognized.

3.2 OBJECTIVE

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 In a business, there should be the objectives to ensure in order to establish our own
strategy and acting as a guideline for our business project in order to ensure that all the
expectation forecast can be achieve in successful manner. The main objective for the
DONUT SHOWDOWN is to give a best quality of our product, which are many different types
and taste of Donuts to our customer in order to make them more satisfied with these
products. We also try to fulfill our customer requirements and needs. We are already outlining
our business objectives and they are stated as below:

i- To make sure that all the operation activities will be run properly and effectively
by the workers who are responsible for it and able to achieved the business goal.
ii- To ensure that all the products that provided to our customer follow the
requirements and needs in order to make them satisfy with our product.
iii- To make sure that our product is nutritious, clean, Halal and always available to
the customer.
iv- To make sure that the stocks is being managed properly.
v- To ensure all the workers can perform their job effectively.
vi- To maximize the sustainable profit growth and minimize the lost.
vii- To make our company grow faster in order to be more competitive in the
business.
viii- To be more creative and innovative in order to attract customers.
ix- To be aware with new business opportunity that is based on our product
x- To make sure the performance of our business operation will be successful.

Thus, based on those objectives, we do hope that the establishment of this business can
make the profit with the full cooperation and commitment of partners. At the same time, we
hope that our business can give the benefits to the entire society.

3.3 OPERATION STRATEGIES

As the world keep on changing and globalization in the Malaysian industry field, we
Donut Showdown are ready to take up the challenge. One of our strategies is through
our operation plan itself. Where this particular plan is vital as others plan that we has
discussed early. The operation plan itself discusses on how exactly the basic operation

44
 will occurs. In the operation department, all the inputs are merging to produce are
merging to produce the output.

In simple word, we at Donut Showdown will efficiently combine the work force, stock
available, equipment and apparatus, technologies, information and capital to meet the
demand of our customers and the same time gain the profit that we had estimated. In
order to do so, we had made several strategies in making sure that the objectives of our
operation plan are well achieved.

These strategies are created for many purposes, which are:

i- To ensure our service flow will be smooth and in proper condition.

ii- To fulfill the customers satisfaction.

iii- To provide the best quality of services to our customers.

iv- To ensure our service is in high quality and utilized efficiently.

v- Send the customers order on time.

vi- To have a good interaction and communication with our customers.

vii- To provide our donuts at the minimum cost.

viii- To achieve customer satisfaction by providing them quality services at a competitive

cost, affordable price and within a reasonable time schedule.

ix- To make sure that all the Bahulu cakes that we bake are properly concealed, clean
and in good condition

Thus, we hope that we can give a better and good quality of services to our
customers.

3.4 PRICES OF OUR PRODUCTS

Types Prices offered by Donut Showdown

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 For end customer (retail Donut Quantity (pieces) Price
2 RM 2.50
price)
Regular (original) 6 RM 14.00
12 RM 26.00
24 RM 50.00

3.5 OPERATION HOUR

Donut Showdown operates 7 days per week and we practice a shift hour for our
worker. Our company does not have off day due to the target demand from the customer that
Donuts with filling would be everyday needs. When the demand comes, our company will
fulfill their request in order to guaranteed satisfaction of our customer.

Donut Showdown will be close just driving the public holiday such as Labor day but
will not be closed during Hari Raya and any big festival seasons in Malaysia. This is due to
the higher demand from the customer for our product.

The operation hour of Donut Showdown :-

DAY TIME

Monday Friday 9.00 am 9.00 pm

Saturday Sunday 10.00 am 10.00 pm

3.6 REST HOUR

The rest hour for our company is state 12.30 pm until 1.30 pm for the first shift and the
rest hour for the next shift is 8.30 pm until 9.30 pm.

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 For Friday, there are extra 1 hour for the workers to perform a Jumaat prayer that is
12.30 p.m. until 2.30 p.m.and the rest day for Saturday is at 1.00pm until 2.00 pm for the first
shift and the next shift is 9.00 pm 10.00 pm. The reasons why there were just 1 hour rest
for the worker is that business need to be operate continuously to fulfill the demand of the
customer and be more effective in making more profit to the company.

3.7 MANPOWER AND LABOR

Donut Showdown, we have 5 workers under operation department, 2 workers for

managing and preparing the bahulu and 2 workers taking order and managing the front
cashier counter and also plus one driver van for delivering the product from supplier and also
to our customer (resellers). This 5 staff have been chosen based on the criteria that our
company has decided. All 5 workers plays a very important role in ensure that our business
running smoothly. These 5 workers are responsible in ensuring the process of managing and
distributing the stocks was on the time and the delivery of the fruit pickles is perfect and any
delay must be avoid by the workers.

They are also having the responsibilities in cleanliness in order to avoid any damages
to the employees due to use of apparatus and equipment in managing the fruit pickles. They
must ensure that the apparatus and equipment are in good condition and safe to be use.

Our workers are totally have been supervised and trained in order to manage the
stocks properly and based on the guidelines as to maintain our quality of product. This will
help our worker to work effectively and can handle the stocks efficiently in order to fulfill the
demand of the customer.

3.8 OPERATION LAYOUT

Premise Layout

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Symbols stand for :

Cashier Donuts racks

Toilet Table&chair

Kitchen

Kitchen layout

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Symbols stand for :

Washing Finished Donuts

Mixing/Preparing Frying

3.9 OPERATIONAL DEPARTMENT CHART

Operational Manager

(Nur Izza Zafierah

Bt Zuhaili)
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 Cashier

Worker

Driver

3.10 MANPOWER REQUIREMENT

DESIGNATION NO. OF SALARY EPF (10%) SOCSO (2%)

WORKER (RM) (RM)
MONTHLY
Cashiers 1 900 x 1 = 900 900 x 13% = 117 900 x 2% = 18

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 Workers 3 900 x 3 = 2,700 2,700 x 13% = 351 2,700 x 2% = 54

Driver
1 900 x 1 = 900 900 x 13% = 117 900 x 2% = 18
TOTAL
5 4,500 585 90
YEARLY
Cashiers 1 1,800 x 12 = 21,600 234 x 12 =2,808 36 x 12 = 432

Workers 3 1,800 x 12 = 21,600 234 x 12 = 2,808 36 x 12 = 432

Driver 1 900 x 12 = 10,800 117 x 12 = 1,404 18 x 12 = 216

TOTAL 5 54,000 7,020 1,080

For Overtime payment

RM 3.75 x 1.5 = RM 5.63 per hour
*basic payment for 1 hour RM 3.75
*overtime payment for 1 hour is RM 5.6

3.11 PRODUCTION SCHEDULE

TIME SHIFTS WORKERS

Cashier Workers Driver

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 1 2 1
9.00 10.00

1 2 1
10.00 11.00

1 2 1
11.00 12.00

12..00 13.00 2 2 1

13..00 14.00 2 2 1

14..00 15.00 2 2 1

15..00 16.00 2 2 1

16.00 17.00 2 2 1

17.00 18.00 2 2 1

18..00 19.00 1 2 1

19.00 20.00 1 2 1

20.00 21.00 1 1 1

21.00 22.00 1 1 1

3.12 STOCK REQUIREMENT FOR ONE DAY PRODUCTION

44
 TYPES COST

Flours RM 20.00 (10 kg)

Eggs (gred A) RM 100.00 (303 units)
Sugar RM 20.00 (11 kg)
Salt RM 1.00 (500 g)
Paste (colour) RM 8
Green (1 packs)
Brown (1 packs)
Purple (1 packs)
Pink (1 packs)

Baking Powder RM 2.00 (1 pack)

Chocolate Chip RM 35.00 (10 packs)
Fillings(Jem) RM 25.00
chocolate (2 bottles)
Strawberry (2 bottles)
Blueberry (2 bottles)
Pineapple (2 bottles)
Coconut Oil RM 1.50 (500 g)
Yeast RM2.50 (2 bottles)

STOCK PURCHASES (RM)

Flours Eggs Sugar Salt Paste
MONTH
Coconut Oil
January
520 2600 520 26 208 39

February

44
 520 2600 520 26 208 39
March
520 2600 520 26 208 39
April
520 2600 520 26 208 39
May
520 2600 520 26 208 39
June
520 2600 520 26 208 39
July
520 2600 520 26 208 39
August
520 2600 520 26 208 39
September
520 2600 520 26 208 39
October
520 2600 520 26 208 39
November
520 2600 520 26 208 39
December
520 2600 520 26 208 39

TOTAL 6,240 31,200 6,240 312 2,496 468

STOCK PURCHASES (RM)

Baking Chocolate Chips Fillings(Jem) Yeast Total

MONTH
Powder (RM)
January
52 910 650 65 5,590
February
52 910 650 65 5,590
March
52 910 650 65 5,590
April
52 910 650 65 5,590
May
52 910 650 65 5,590

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 June
52 910 650 65 5,590
July
52 910 650 65 5,590
August
52 910 650 65 5,590
September
52 910 650 65 5,590
October
52 910 650 65 5,590
November
52 910 650 65 5,590
December
52 910 650 65 5,590

TOTAL 624 10,920 7,800 780 67,080

3.13 CONVENTIONAL SYMBOL

SYMBOL ACTIVITY DECRIPTION

Operation Material are being processed
or information being or the
process of planning and
calculating
Transporting Movement of material from
one place to another

Inspection Inspection on the quantity or

quality of the product

Delay Processed is delay or material

waiting for further processed

44
 Storage Process of the materials or
finished products is stored in
the storage area

3.14 FLOW CHART OF OPERATION ACTIVITIES

44
 Sift flour together with the sugar and salt. Set aside.

Mix the yeast and the warm water together in a small ramekin.

After thatputyeastinto doughthat have been made input Knead the

dough with your hands and knuckles for 5 minutes until the dough is
smooth.

Set the dough into a greased bowl to rise.Cover with a towel and let stand until
dough doubles in volume (about 1 hour)

On a floured surface, roll the dough out until it's about 0.5 inch (1.3cm)
thick. Make a round shapes by hand

Heat the oil in a deep fryer. Gently transfer doughnuts into the fryer

While doughnuts are still warm, dip doughnuts into the glaze, coating
evenly and put on the toppings.

Operation

44
 Operation

Operation

Operation

Operation

Operation

3.15 EQUIPMENT AND APPARATUS

The material management is important in our packaging process as its need to be
clean and sterile at any time. The entrepreneur should plan and control the quality of
packaging effectively and efficiently.

44
 Item Price No. Total Supplier
/ unit requirement cost
(RM)
Weight Jong
Machine 100 1 100 Hong
Enterprise

Fridge Jong
390 1 390 Hong
Enterprise

Deep Mustafa
fryer 10000 1 10,000 Tools
Enterprise

Electronic 1000 1 1000 Mustafa

Mixer Tools
Enterprise

Others 3,250 3,250

Total 11,490

44
3.16 OTHER EXPENSES

No. Items Quantity Price/unit Total (RM)

(RM)
1 First Aid 1 40 40
2 Fire Extinguisher 2 130 260
3 Uniform 6 25 150
4 Packaging 50Kg Small size = 9 585
(small = 20Kg, per Kg
Medium = 15Kg Medium size =
Large = 15Kg) 12 per Kg
Large = 15 per
Kg

44
 5 Plastic bags 50Kg 4 per Kg 200
6 Glove 4 10 40
7 Insurance van 1,000
8 Road Tax 500
9 Van Inspection 60
Total
2,835

3.17 LIST OF EQUIPMENT

Item Price/unit No. Total Supplier

RM Requirement Cost
RM
Sink 225 2 450 Deluxe Sdn
Bhd

Upright 1200 1 1200 Rakan

Freezer niaga Corp

44
 Rack 420 4 1,680 IKEA

Stainless 1,200 1 1,200 Stanley sdn

steel table bhd

Dustbin 25 3 75 Kedai
runcit Bilah
enterprise

Cash 1,000 1 1,000 Stationerie

Register s is ours
enterprise

Long Hong leong

Table 90 2 180 hardware
sdn bhd

Small Jati
Square 120 1 120 sungguh
Table sdn bhd

Others 2,835
Total 8,740

3.18 OPERATIONAL BUDGET

FIXED ASSET MONTHLY OTHER
NO. ITEMS EXPENSES EXPENSES EXPENSES
(RM) (RM) (RM)
1 Equipment 8,740

44
 2 Apparatus 11,490
3 Van 50,000
4 Labour wages 4,500
5 EPF 585
6 SOCSO 90
7 Stocks 8,985
8 First aid 40
9 Fire extinguisher 260
10 Uniform 150
11 Packaging 585
12 Plastic bags 200
13 Glove 40
14 Insurance lorry 1,000
15 Road tax 500
16 Van inspection 60

TOTAL 70230.00 14,160 2835

2.19 PRODUCTION PLANNING

Production Planning is concerned with the determination and arrangement of all facilities
necessary for future operations. During the scheduling phase the production plan is
translated into a detailed, usually day-by-day, schedule of products to be made. Besides, it
helps to decide the ways and means of production and showing the direction. That
importantly, it is based on sales forecasting. So, it is important to make sure that the business
is able to produce outputs that are enough to fulfil the expected market demand or sales. This
can be achieved by having a good production planning. In production planning, the business
will determine how much output to produce for a certain period of time such as in a day, a
week or a month.

Average sales forecast per month = RM 32, 017

Price per unit = RM 0.30

Number of output per month = RM 26,311

RM 0.30

= 106,723 UNITS

If the number of working days per month is 26 days,

The amount of output to be produced per day is:

44
= 106,723 donut

26 days

= 4,104.7 4,105 donut per day

3.20 MANPOWER PLANNING

Manpower Planning which is consisting of putting right number of people, right kind of
people at the right place, right time, doing the right things for which they are suited for the
achievement of goals of the organization. Therefore, manpower planning involves reviewing
current manpower resources, forecasting future requirements and availability, and taking
steps to ensure that the supply of people and skills meets demand. The production operation
refers to the amount of output that can be produced within a specific time. Production
planning is a method to calculate manpower requirement so that production demand based
on sales forecast can be met.

The sales forecast is 27,750 units of donut per month which is monthly production demand is
27,750. If working days per month are 26 days per month, the daily production rate is:

106,723 / 26 days = 4,105 donut per day

The working hour per day is 12 hours. After deducting one hour to two hours of rest period
and idling time the effective working hours per day is 9 hours. The hourly production rate is:

4,105 / 9 hours = 456 pieces of donut per hour

One worker can produce about 432 pieces donut in 1 hour and then his hourly capacity is:

432/ 1 = 432 pieces donut per hour

Therefore, the number of workers required is:

Planned Rate of Production per hour

Worker Productive Time per hour
= 456 pieces of donut
432 capacity of worker

= 1.05 1 workers

44
1 workers

Thus, Donut Showdown needs one worker in mixing and frying area.

4.0
MARKETING PLAN

44
4.1 INTRODUCTION

Marketing plan can be defined as the activities that are carried out systematically to
encourage and increase sales of products or services as long as the activities are in line with
religious and ethical practice. Marketing activities and strategies result in making products
available that satisfy customers while making profits for the companies that offer those
services.

4.1.1 MARKETING GOALS

As doughnut business is involved in food industries, the company is competing with

other competitors who are in similar business line. Moreover, to ensure that our business
operations are running smoothly, our company comes out with effective plans and strategies
in selling, promoting, and marketing of our product. These plans will make us possible to get
maximum profit as well as to satisfy our customers needs. We try to provide and deliver
quality services to the customers because we believe that the customers would respect us if
we satisfied them with an excellent quality of services and fulfil their needs and wants.

Marketing plan is a part of a venture overall strategic effort. To be effective, these

plans must be based on the ventures specific goals:

i. To increase our sales and get 90% profit in a year.

ii. To enter the market with the greatest performance and achievement.

iii. To promote our services as well-known, reputable and recognized to our customers.

iv. To provide a high quality food and doughnut at a reasonable price and making it
available to all types of customers.

v. To fulfill customers satisfaction when they eat our food.

44
 vi. To widen our product across the nation of Malaysia, including East Malaysia (Sabah
and Sarawak).

4.2 TARGET MARKET

In determining target market, a business needs to first identify the product or services
to be offered. Next, the business should focus its marketing efforts by identifying the market
area and business location, collecting information and data of customer that can be used to
identify personal details of the population in the area, their lifestyle and buying habits. By
compiling these details, the business can now be divided the market into smaller groups or
segments. Below, it shows the market segments of our target market;

4.3 LOCATION OF BUSINESS

44
 4.3.1 Geographic

i. We are focusing people that are staying at the urban area especially in Bandaraya
Melaka, because it is located within the radius of our doughnut cafe. Besides that, our
stall is also accessible to anyone in Bandaraya Melaka region, because Melaka is
located at the heart of our location. Thus, making it easier for our potential customer
to come and purchase our foods.

ii. Besides that, it is easier for our doughnut to get supplies from our supplier because
Melaka is close to the exit of Lebuhraya Ayer Keroh Ayer Keroh exit.

4.3.2 Demographic

i. This segmentation is based on age, race, religion, gender, education, family size,
and occupation.

ii. We are focusing our target market to young people, especially students who like to
sweet foods because they are more likely to purchase our doughnut.

iii. For example: Students of UITM Bandaraya Melaka hard find a place where they can
buy comfort food for a reasonable and affordable price. So, by opening our stall in the
heart of Melaka, it will give them the opportunity to purchase our doughnut.

4.3.3 Psychographic

i. The psychographic segmentation here in Bandaraya Melaka has different social

class, lifestyle, and personality that affect our market.

ii. In social class, there are high, middle, and lower class. Every social class will able to
purchase our food because of their financial position and our doughnut taste for sure .
Besides that, people who love to eat sweets food are expected to purchase our
doughnut.

44
4.4 TARGET MARKET POPULATION

college
student

high
Bandaray
school a Melaka families
student

employer
s

44
 4.5 MARKET SIZE

Population in Melaka is 872,900 people. In determining the market size, a company

focused on the people who situated around 20km from DONUT SHOWDOWN and it is
estimated to be about 80,380people. The company narrowed its focus only on student and
social class from middle and high group income which is estimate 4,019 people 5% from
80,380 people. The price per enter to be offered is RM5 per day.

Market Size = 1 day: 4,019 RM 5 = RM 20,095

= 1 month: RM 20,095 30 days = RM 602,850

= 1 year: RM 602,850 12 = RM 7,234,200

The market size = RM 7,234,200

A survey of purchase that has been made for these four groups has been showed below:

TARGET MARKET NUMBER OF MARKET PRICE SALES/MONTH SALES/YEAR

TARGET (RM) (RM) (RM)
MARKET

College Student 1500 5 225,000 2,700,000

Families 300 5 45,000 540,000
Employer 1700 5 255,000 3,060,000

High School Student 519 5 77,850 934,200

TOTAL 602,850.00 7,234,200.00

Based on this survey, DONUT SHOWDOWN estimated the market size to be RM 602,850.00
month, that is RM225,000.00 a month from college student, RM 45,000 from families,
RM255,000.00 from employers , and RM 77,850.00 from high school student. The business
then proceed to estimate the potential sales for the years as RM 7,234,200.00

4.6 COMPETITOR

44
 COMPETITOR STRENGTH WEAKNESSES

Price of services are

Early existence in
expensive.
Bandaraya Melaka. Cafe too crowded with
Dunkin Donut
Well known among the
people.
locals and customers.

Well-known for its variety

Price and services are
of doughnut.
J.CO Donuts & Coffee expensive.
Cheap price compared to
others.

Many options of flavour.

Reasonable price with
DONUT SHOWDOWN New in the market.
the high quality of
doughnut.

4.7 MARKET SHARE

44
 Market share refer to the estimated potential sales of the business after taking into
consideration of the market size and competitors influences. After analysing the competitors
strength and weakness, DONOT SHOWDOOWN is confident it can control 15% of the
market. This will mean that the existing competitors will lose some of their market after the
entry of DONUT SHOWDOWN
The table below show the market share before and after DONUT SHOWDOWN enter
into the market.

Before DONUT SHOWDOWN Enter the Market

COMPETITORS PERCENT (%) TOTAL (RM)

Dunkin Donuts 57 4,123,494.00

J.CO Donuts & Coffee 43 3,110,706.00
TOTAL 100 7,234,200

Sales

43% Dunkin Donuts

58% J.CO Donuts

After DONUT SHOWDOWN Enter the Market

44
 COMPETITORS PERCENT (%) TOTAL (RM)

Dunkin Donuts 45 3,255,390.00

J.CO Donuts 40 2,893,680.00

Donut Showdown 15 1,085,130.00

TOTAL 100 7,234,200.00

Sales

Dunkin Donuts
J.CO Donuts
Donut Showdown

44
4.8 SALE FORECAST

Month Sales Collection (RM)

January 645,151.83
February 646,596.66
March 650,812.95
April 650,563.00
May 639,797.58
June 652,227.58
July 652,113.60
August 633,443.00
September 635,493.00
October 644,493.00
November 645,948.00
December 646,359.70
TOTAL 7,234,200.00

Remarks :

January
The cafe enters the market and the customers still do not know about the food service. Our
company starts to make promotion by introducing our doughnut to people in the target
market area, and the selling remains within the kilometre radius of the target market.

February
The sales start to increase due to the promotion made by our company. People now are
aware of our doughnut and it has attracted many people, especially students to try our
doughnut.

March & April

Sales increase due to number of people like to eat and know our doughnut through flyers
and another promotion and customer start to enjoy in our food to purchase our doughnut.

44
May
Sales start to decline because most of our customers which consist of university students are
having their semester break. Thus, resulting in the decline of our sales figures.

June & July

Sales start to climb back up because our customers which are consist of university students
are back from their semester break. Moreover, the sales boost so much due to the promotion
through social networking, blog, and direct selling. The sales also increased based on people
demand to purchase our doughnuts, and our doughnuts had built trust in them.

August
Sales decline because most of our customers are Muslim, and they start fasting because it is
the month of Ramadan. In the blessing of the month of Ramadan, most of our customers did
not come because they are fasting.

September
Sales start to climb up a bit because the month of Ramadan already ends. The reason it
climbs up only with a few figures is because most of our customers who are Muslims are
busy with the month of Syawal.

October to December
Most of the customers feel confident with our services, increasing the demand of our
doughnut, thus boosting the figure of our sales.

44
4.9 MARKETING STRATEGIES

Donut services Bandaraya Melaka

Service
es
es
Service
Strategi
Strategi
Strategi
Strategi
es
Place
Place
es

es
es
Strategi
Strategi Price
Price
nn Strategie
Strategie
Promotio
Promotio s
s
Social Networks
Competition based
Flyers
pricing
Business Card

4.9.1 Service Strategy

The uniqueness of our cafe is that we provide world class doughnut taste, such as the
flour and etc. Many of our cafe equipment are of high quality with high maintenance.
Moreover, some of the equipment we provide is multipurpose equipments.

Moreover, we have two separate services provided to our customers based on their
age. For older, we provide them with a less sweet sugar and healthy doughnut , while for the
teenagers and adult; we are provide them with a sweet doughnut for them.

44
4.9.2 Place Strategies

Bandaraya Melaka can be classified as one of the town that has higher population
and our company is situated within that area. It is a strategic area because it is near to
residential area, universities, school and also surrounded with shopping complex. It will be
our placed for target market and in promoting our service, so the service can be promoted to
the customers easily.

Our place is completely perfect with basic infrastructure needs such as electricity,
telephone lines, and water. Our company focuses on location that has lot of residential area
around it because as starters, we can promote it to the university students and local
residents.

Bandaraya Melaka has a lot of residential area and it is also surrounded with
industrial places, educational institutions, and hotels which can increase our income whereby
the place we choose is strategic.

4.9.3 Price Strategy

44
 Our company fixed the price based on competition based pricing. This is because
most of our competitors have the equivalent price in the market. Our company promotes a
reasonable and affordable price compared to other competitors. This is because our
company is a new company and the customer are attracted to the variety of new flavours of
doughnut that we provide which are provided with a reasonable price. It will most certainly
satisfy the customers demand. Other than that, our doughnut is the cheapest among our
customers.

Gymnasiums Price
Dunkin Donuts RM 7.00
J.CO Donuts RM 4.50
Donut Showdown RM 5.00

Based on our competitors, Dunkin Donut has a higher price compared than others.
This is because Dunkin Donut is one of the trusted doughnut cafe and is already in the
market for a long time. Dunkin Donut provides a better quality which is costly. It will cause
them to set up a higher price for the service.

DONUT SHOWDOWN sets the price cheaper than Dunkin Donut because this will
fulfill customers demand and people will more attracted to cheaper price. Even though our
company sets up a moderate price, but the quality of doughnut we provided is the same to
other doughnut cafe with much more attractive features.

4.9.4 Promotion Strategies

Promotion is method of communication by business inform, persuade, and influence

customer to rent or use our services. A promotion strategy is a very important step to
determine our organization goals on this modern period because of the ever-challenging
competitors.

Social Networking

44
We also promoted our doughnut through twitter, where it can reduce the cost because of its
free services. Customers can access our webpage through
http://www.twitter.com/pages/DoNotWorry for more information regarding our business.
In addition, we also provide facebook to contact us

Web site / Blog

Our
company starts
our
promotion by make
our own
company web
page by using
blog service. This will display advertisement about our company and also about our services.
By using blog, it does not require any cost and it also can attract teenager because most of
the them are active with blogs. In our blog, we show information about our company details,
complete with our address, price, functions and all details that will make people easier to look
at our product.

Flyers

44
Our company use flyers to distribute to the notice board, residential area, university, colleges.

Business card

Business card is very important while you are

opening a business. For each of the customer who came to
our business, they are given a piece of business card that
contains all the information regarding our
business, such as the name of company, address, and contact number. The purpose to make
our business card is to attract the attention of our customers to use more of our services, and
to build a long-term relationship with them.

44
4.10 MARKETING BUDGET

MARKETING EXPENDITURE

Fixed Assets RM

Signboard 2,000

Working Capital

Other Expenditure

Other Expenditure

Pre-Operations

Deposit (rent, utilities, etc.)

Business Registration & Licences

Insurance & Road Tax for Motor Vehicle

Other Expenditure 1,345

TOTAL 3,345

44
 F.ASSETS MONTHLY OTHER TOTAL
PARTICULARS (RM) EXP. (RM) S (RM) (RM)
Fixed Assets

Signboard 2,000 2,000

- -
Working Capital

- -

- -

- -
Pre-Operations & Other
Expenditure

Other Expenditure -

Deposit (rent, utilities, etc.) - -

Business Registration & Licences - -

Insurance & Road Tax for Motor
Vehicle - -

Other Pre-Operations Expenditure 1,345 1,345

TOTAL 2,000 - 1,345 3,345

44
 5.0
FINANCIAL PLAN

44
5.1 INTRODUCTION

The most crucial before starting a new business is how to get the capital and how the
capital will be use. Financial system is basic thing or features in a business and it is the main
source to control the journey of a business.

A complete set of account which is related with the organization journey will be
prepared by the chosen Financial Manager; to financial statement every year. It will show the
profit or loss of our company, assets, liabilities, and the stability and growth of our companys
financial to make it faster. Besides, financial system can give us a clearer picture about our
return of capital that will be gain or capital investment that has been done.

The information of financial plan is to gather on the input from the administrative
budget, marketing budget, and operation budget.

The objectives of financial plan are:

i- To determine the amount of money to be invested that is the project cost.

ii- To identified and propose the relevant source fund
iii- To ensure that the initial capital is sufficient
iv- As a guideline for implementation
v- To know whether the business is competitive or not
vi- To determine the potential of the business to generate profit
vii- Cash outflows and cash inflows in the business project
viii- Hire purchase installment payment
ix- Loan installment payment
Depreciation on the fixed assets
The companys capital structure
The total cost that we need to start the business
Cost or paid up capital involves for starting the business

44
FINANCIAL INPUT

Administrative Budget

Useful life of fixed assets.

DEPRECIATION METHOD
(1=straight line, 2=declining
balance) 1

44
Marketing Budget

Forecasted Sales & Purchases.

44
Operation Budget.

44
PROJECT IMPLEMENTATION COST SCHEDULE

A project implementation cost schedule incorporates both long-term and short-term

expenditure needed to start a project. The purpose of preparing the cost schedule is to
determine the amount of initial investment needed to launch our new project.

44
44
44
44
DEPRECIATION SCHEDULES

Our company is planning to purchase fixed assets either with cast or through hire purchase
scheme. Therefore, depreciation schedules for each of the fixed assets (except land) either
bought or contributed have to be prepared. Our method to calculate the annual depreciation
charges is the straight-line method.

Annual depreciation = Original cost of asset Scrap value

Assets Economic Life

Annual depreciation (Vehicle) = RM85,000 RM0

5 years

= RM17, 000

44
44
44
 SOURCES OF FINANCE SCHEDULE

Our source of finance schedule is made of the following common components:

Internal sources
- Equity contributions (cash)
External sources
- Term loan

Hire-
Requirements Cost Loan Own Contribution
Purchase
Fixed Assets Cash Existing F. Assets
Land & Building 80,000 80,000
Office Equipment 6,848 6,848

20,57
Furniture & Fixture 20,574 4

Signboard 1,000 1,000

Vehicle 25,000 25,000

20,23
Equipment & Apparatus 20,230 0

month
Working Capital 1 s
Administrative 11,323 11,323
Marketing 7,440 7,440
Operations 5,590 5,590
Pre-Operations & Other
Expenditure 13,423 6,600 6,823
10
Contingencies % 19,143 19,143

68,50
TOTAL 210,571 117,066 25,000
5

44
Amortisation schedule (term loan)

44
GOOD PRODUCTION COST

44
PRO FORMA INCOME STATEMENT (ANNUALLY)

44
PRO FORMA BALANCE SHEET

44
FORECASTED PERFORMANCE

44
FINANCIAL RATIO

44
44
44
7.0 CONCLUSION

In this modern world, people can no longer expect large enterprise to

guarantee them jobs for life. Individuals are increasingly expected to seek out their
own opportunities, actively create value and behave ethically.

Therefore, in conclusion, from this assignment, all of us had an opportunity to

learn and experience ourselves on how the entrepreneurship really works. Without
this project, we would not be able to study basic about business, in fact, it also helps
us to learn more on how to approach and persuade the customers to purchase our
products. This project also help us plan to expand our business by giving a variety of
product to customers. To become a successful decoration in Malaysia within 5 years
and in Asia on the years of 2020. Then, also to provide the best handmade product
with a good quality.

Furthermore, this entrepreneurship assignment basically helps us to build

confidence in order to create our own business in future. We believe that this project
is to give us a good chance to learn and explore more about business like the
general, operation, financial, human resource and also marketing as well.

Last, but definitely not the least, this assignment that we were assigned to
complete helps us to cooperate and interact well with each other. It somehow ties our
bond together to make a great team works, the great of experience in subject
entrepreneurship. Then, encourages us to become a successful entrepreneur
besides it also a practice for our future on how to solve a particular problem together
with a good communication skills.

44