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BUSINESS PLAN

SATAY KING

DATO IR. MUHAMMAD HAKIM BIN YUNUS 51211217104


NADIAH BINTI ARIFIN 51211217092
IR. MUHAMAD SYAFIQ BIN SUMAIRI 51211217077
IR. MOHAMAD HAFIZ BIN AZMI 51211217031
MUHAMAD ADIB FIKRI BIN UJANG 51211217140
NURSYUHADA BINTI MOHD ALI 51211217009
SET ZI YANG 51211217096
DANIAL HAKIM BIN JAMAL MOHAMAD 51211217039
NUR AISHAH BINTI MOHAMAD RAIS 51211217012
SHAHRUL AZAM BIN MAT ZIN 51211217162

Contact Details:

Address: NO 5 Jalan Kemajuan,


Bangi Industrial Estate,
Bandar Baru Bangi,
43650 Selangor Darul Ehsan
Tel : 033652211
Fax : 063882440
Mobile : 01798563214
Email : satayking95@gmail.com
CONTENTS

Section 1.0 EXECUTIVE SUMMARY......................................................... 2

Section 2.0 INTRODUCTION TO THE COMPANY 4


2.1 Company Background.......................................................... 4
2.2 Business intend and activities.............................................. 5
2.3 Target market........................................................................ 7
2.4 Vision, mission and goal of company................................... 9
2.5 Future prospects of the business......................................... 10

Section 3.0 EMPLOYMENT OF KNOWLEDGE WORKERS


3.1 Management Team............................................................... 11
3.2 Organization Chart................................................................ 21
3.3 Human Resource Plan.......................................................... 22
3.4 Administrative Budget........................................................... 23

Section 4.0 PRODUCT OR SERVICE DEVELOPMENT


4.1 Product Technology Overview............................................. 24
4.2 Benefits & Customer Value................................................... 37

Section 5.0 MARKETING PROGRAMS


5.1 Marketing Overview.............................................................. 41
5.2 Marketing Budget 52

Section 6.0 OPERATION PLAN


6.1 Operational Setup................................................................ 53
6.2 Operational Budget.............................................................. 72

Section 7.0 FINANCIAL PROJECTIONS


7.1 Financial Overview.............................................................. 73

Section 8.0 APPENDICES. 85

1
1.0 EXECUTIVE SUMMARY

Satay King company based on partnership where it consists of ten (10) members which
hold important positions in the company such as Chief Executive Officer (CEO),
Administration Manager, Marketing Manager, Operational Manager and Financial
Manager. The business capital is amounted to RM 1,000,000 where the total
contribution of each member is RM150, 000 and the rest RM 500,000 is from Bank
Negara loan.

Satay King Company is located at Bangi with address: NO 5 Jalan Kemajuan, Bangi
Industrial Estate, Bandar Baru Bangi, 43650 Selangor Darul Ehsan.

Satay King is a company which focuses on manufacturing machine in Malaysia. This


company provided a satay machine which is more technology revolutionary and created
the brand of the innovation. Traditionally to produce satay there need more manpower
and consume a lot of time and cost. Therefore, we decided to make some innovation to
solve the problem statement by implying our creativity and modern element in this
machine which is wanted by customer nowadays. By these machine, its can help
consumer to reduce a lot of time in preparing satay.

Our target market based on two factors which is geographic and psychographic. Satay
King more focused in cities because there are a lot places for marketing this machine.
Furthermore, that our target market is peopling that comes from all level of incomes
from both genders.

With loan given as a support from Bank Negara we are hoping and wishing to make this
machine able to achieve outstanding demand from consumer. Our business is expected
to commence on 2020 and our vision is to make our company committed in producing
high quality product and providing high quality service thus setting high industry
standards for other competitors. This will be realized by the full cooperation and efforts
among the partners to promote company.

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Based on the objectives above, we are venturing into manufacturing production has the
potential of being a profitable business if it is done in modern way with large scale and
systematically managed.

We will expect that our business will become more developed in the near future
because with the new innovation in our machine, the demand will increase. This will
give more advantages for us to make our product more profitable and stable in the long
run.

3
2.0 INTRODUCTIONS TO THE COMPANY

2.1 Company Background

SATAY KING

Shareholders name:

1) DATO IR. MUHAMMAD HAKIM BIN YUNUS


2) NADIAH BINTI ARIFIN
3) IR. MUHAMAD SYAFIQ BIN SUMAIRI
4) IR. MOHAMAD HAFIZ BIN AZMI
5) MUHAMAD ADIB FIKRI BIN UJANG
6) NURSYUHADA BINTI MOHD ALI
7) SET ZI YANG
8) DANIAL HAKIM BIN JAMAL MOHAMAD
9) NUR AISHAH BINTI MOHAMAD RAIS
10) SHAHRUL AZAM BIN MAT ZIN

Paid up total: RM 500,000.00

Type of industry: Manufacturing

Date of register: 16 June 2016

4
2.2 Business Intent & Activities

Company Background
Our company was established on January 2017. The company was named Satay
King by the UniKL BMI students that subsequently brainstorming their idea to
create a brand, products and technology for the future. The company created a
machine that produces frozen food such as satay that could entice customers to
buy it. The company has talented and experienced engineers in the field of
mechanical and electrical to produce this machine. Satay King created the
machine of technology revolutionary and created the brand of the innovation of
frozen foods machine in the future. Furthermore, the machine technology are
created to process the ingredients of spices and meats, burning of half cook,
freezing it and subsequently become frozen satay for marketed. This main
marketing is especially to the frozen foods factory that still using ancient methods.
In addition, by selling this machine, the company has also provided the service for
the machine if there have any damage. Therefore, our company can make profit
through the sales of the machine and the service that company has provided.
Conclusion,, the company business will grow wider and became famous around
the world in the manufacture of frozen food.

Problem Statement
Traditionally to produce frozen food, it will need much manpower and consume a lot of
time and costs. In addition, by applying traditional techniques it will cause smoke
pollution which can be adverse effects on unhealthy for customers and also patients
that have asthma. This produces carbon combustion frozen food which is unhealthy
that stick along with the frozen food. Despite that, we found three problems of the
manufacture in a manner of ancient that are smoke pollution by frozen food grilling,
slow production of frozen food and arduous in the making of frozen food. Air pollution
occurs when the seller burn the charcoal to produce the smoke that contains carbon
which is unhealthy for our bodies to grill the meats. So, by using this machine there is
no smoke occurred and innovated to impede the air pollution and lead to a clean
environment. Besides, the making of frozen food is too slow by ancient method that

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required a lot of process preparation such as cutting, skewering and grilling meats with
various sauces. This process will take a long period and difficult in the making of frozen
food.

Ideas of technology product


An idea that can be adapted to improve this company business is to produce a clean-
grilling frozen food by applying our new technology which is Grill Electric Gyros Plate.
The machine has 5 processes which are blending, skewering, grilling in half cook,
packaging and freezing it. Grill Electric Gyros Plate will grilling half cooked of frozen
food and does not pollute the air. The idea encouraged to be more an eco-friendly and
green earth. In addition, this future technology machine produces frozen food previously
there are in the market, which is the innovation designed by the company. Therefore,
this frozen food can be marketed at a supermarkets, shops and restaurants.
Conclusion, the main intention of the creation of this high-technology machine is to
produce the frozen food which is a readymade satay with original taste and savory
frozen food in accordance with the future development.

6
Target Market

To ensure that marketing effort fulfill customers needs and wants as well as bring the
profits, we have analyzed the steps to identify and focus our effort on a selected group
of customers. This is to ensure that the marketing efforts that has been analyzed
through our scope and capabilities of our business. Target market is defined as the
group of customers with needs and wants that can be satisfied by business through
supply goods and services. With a clearly defined target audience, it is much easier to
determine where and how to market our company.

After discussions and planning, we have a specific target market. In addition, by


this duty, it does not mean that we are only focus in this group members and ignore
others that are not in our target market duty but the others market group could also
bring income to our business.

We have segmented for our market based on these two factors, which are
geographic and psychographic. Market segmentation is the technique that we have
apply in order to identify our market that is greatly helps in deciding our target market
and finally our business in a long run. It involved the process of defining and subdividing
a large homogenous market into clearly identifiable segments having similar needs, wants,
or demand characteristics. Its objective is to design a marketing mix that precisely matches
the expectations of customers in the targeted segment. This is because the mistakes in
market segmenting may cause business lost sales.

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Geographic Segmentation

Geographic segmentation divides the market into different geographical units such as
nations, regions, states, counties, or cities. Our company is located at the cities where
the people or customers came from different background or lifestyle. This type of
segmentation helps us to identify the trend that might shape future spending patterns in
the target market. There are a few characteristics of population that has been identified
as our target market. The target market for marketed this machine is more to focus in
cities. This is because the cities have a lot of places for marketing this machine such as
restaurants, factories for frozen food, stalls and streets.

Psychographic Segmentation

Psychographic segmentation divides the market into groups according to customers


lifestyle. Activities, interests, and opinions (AIO) surveys are one tool for measuring
lifestyle. It considers a number of potential influences on buying behavior, including the
attitudes, expectations and activities of consumers. From our research, we identified
that our target market is people that come from all level of incomes from both genders.
As we know, we are competing with other companies in producing frozen machine. So,
our machine are different from others. These differences can attract customers to come
to our company, besides the fact that our product is a very new and unique product.
Because of this reason, we have decided to use only the best qualities of raw materials.
In addition, we are also provide the best services at reasonable prices. All these are
important to ensure that our customers are satisfy with our product.

8
2.4 Vision, Mission and Goal of the Company

Vision

We are committed in producing high quality product and providing high quality service
thus setting high industry standards for other competitors.

Mission

To serve as a one-stop solution provider that achieves manufacturing


excellent through process and product innovation, thus contributing to
customer value.
We are committed towards producing higher quality and service that
exceeds customers expectation through innovation.

Goal of the company

Our main goal is to be one of the most successful frozen food of satay
outlets in global.
A growing business, full of opportunity.
More innovative and full of ideas
Strive to be a premier frozen food in the local market place.

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2.5 Future prospect of the business

For more future prospect of the business the company will obtain in a variety of ways
such as Social Media in the physical world and the customer can approach our
company first by visit the company website. The company will connect with influencers
on Facebook, Twitter, LinkedIn and Google+ and communicate with them. Thus, the
customers could also give some enquires on the company email so that everyone can
give the feedbacks too.

Meanwhile, by this business the company will append and improve ideally on
the product machine from ancient satay that namely Grill Electric Gyros Plate that could
solved and innovated more in making of satay. By this innovation machine as well which
is no smoke occurred and innovated to impede the air pollution and lead to a clean
environment. Thus, by making the satay with this machine will less the manpower and
easier to produce large quantity of frozen food. In addition, these future prospect
machines will produces frozen satay previously there are in the market and can be
marketed at big company such as supermarkets and restaurants. The company will
render in market of the product duly which is the readymade satay with original taste
and savory satay in accordance with the future development. The marketing of this
business will market bigger through the Social Media because it is a great way to start
creating and nurturing relationships through engaging in conversations, sharing relevant
content and generally getting to know the people who are keen followers of your brand
by applying the social media so that all around the world will desire and interest with the
product that the company offer

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3.0 EMPLOYMENT OF KNOWLEDGE WORKERS

3.1 Management Team

Dato Ir Muhammad Hakim Bin Yunus


Chief Executive Officer
Malacca

EXPERTISE

Great critical thinking abilities.Professional in project management Expert in Contract


administration.
EXPERIENCE

KUMALA INDUSTRIE,INDIA - Junior Engineer


YEAR 2002 - 2009

SAPURA KENCHANA,MALAYSIA - Asst. Director


YEAR 2009 - YEAR 2014

SCHLUMBERGER - Director
YEAR 20014 - YEAR 2017

EDUCATION

University Malaya, Malaysia - Bachelor in (Hons) Electrical Engineering

YEAR 1994 - YEAR 1997

Stanford University, United Kingdom - Master in Business Administration

YEAR 1998 - YEAR 2002

11
Nadiah Binti Arifin
SECRETARY
Penang, Malaysia

EXPERTISE

Plan financial futures by offering information and guidance on topic that include taxes.
Responsible for reporting of income and expenditure budget and staff profile that
informs the budget.

EXPERIENCE

Capital Dynamic Holding,MY - Financial Consultant


YEAR 2011-2013

Khazanah Nasional,MY - Senior Consultant


YEAR 2015 - YEAR 2017

EDUCATION

UniversitiKebangsaanMalaysia- BachelorinAccount(honors)

YEAR 2005-2008

UniversityofNicosia,CyprusMBAinHumanResourcesManagement
YEAR 2009-2011

University of Nicosia, Cyprus- Doctor in Philosophy in Environmental Science and


Economic
YEAR 2012-2015
12
Ir. Muhamad Syafiq bin Sumairi
Operation Manager
Subang, Selangor

EXPERTISE

Monitoring and analyzing the current system of production or provision to check its
effective, and working out a strategy for improving if necessary. Competent in planning
and controlling change and also researching new technologies and alternative methods
of efficiency

EXPERIENCE

Malaysia Marine and Heavy Engineering - Assistant Operation Manager


Year 2013 - 2016

EDUCATION

UTHM, Johor - Diploma in Electrical and Electronics


Year 2004 - Year 2006

Imperial College of Engineering, India - Bachelor of Engineering in Electrical


Year 2007 - Year 2010

University of New South Wales, Australia - Master in Operations Management


Year 2010 - Year 2013

13
Ir. Mohamad Hafiz bin Azmi
Assistant Operation Manager
Manjung, Perak

EXPERTISE

Capable to communicate with clients and evaluate their needs and specifications. Able
to schedule preparation, pre-planning and resource forecasting for engineering and
other technical activities relating to the project. Plus, manage to assist in organizing,
planning, implementing strategy and coordinate operations.

EXPERIENCE

Primech Industrial Supplies (M) Sdn. Bhd. - Assistant Project Engineer


Year 2007 - 2010

CBR Conveyor Systems Sdn. Bhd. - Project Engineer


Year 2013 - 2016

EDUCATION

University Kuala Lumpur British Malaysian Institute - Foundation in Science and


Technology
Year 2002 - Year 2003

University of California, Los Angeles - Bachelor of Engineering in Electrical (Hons)


Year 2003 - Year 2006

University of New South Wales, Australia - Master in Operations Management


Year 2010 - Year 2013

14
Set Zi Yang
Marketing Manager
Malacca

EXPERTISE

Competent for developing, implementing and executing strategic marketing plans for an
entire organization (or lines of business and brands within an organization) in order to
attract potential customers and retain existing ones.

EXPERIENCE

Berjaya Group - Sales Engineer


Year 2009 - 2011

YTL Corporation - Assistant Marketing Manager


Year 2011 - Year 2016

EDUCATION

Universiti Teknologi Malaysia - Foundation in Science and Technology


Year 2001 - Year 2002

University of Bradford - Bachelor of Engineering in Electrical (Hons)


Year 2002 - Year 2006

University of Oxford- Master in Business Administration


Year 2006 - Year 2009

15
Danial Hakim bin Jamal Mohamad
Assistant Marketing Manager
Lumut, Perak

EXPERTISE

Competent assisting manager for developing, implementing and executing strategic


marketing plans for an entire organization (or lines of business and brands within an
organization) in order to attract potential customers and retain existing ones.

EXPERIENCE

Oxford Tobacco Limited Malaysia Branch - Assistant Marketing Manager


Year 2013 - 2016

EDUCATION

Management and Science University -Diploma in Business and Financial


Year 2006 - Year 2009

University of Oxford - Bachelor of Business Administration (Hons)


Year 2009 - Year 2013

16
Muhammad Adib Fikri bin Ujang
FINANCIAL MANAGER
Johor Bahru, Johor

EXPERTISE

Corporate accounting skills and knowledge


Ability to compile, verify, analyze, interpret and disseminate critical financial data
(actual,forecast and budgeted) to all major stakeholders and in multiple currencies.
Experience in acquisition accounting mergers, competent in statutory reporting and tax
related task.

System implementation

Successful implementation, analysis and management of new accounting systems and


procedures, including systems integration and staff training.

EXPERIENCE

Bernama Limited - Assistant Accountant


YEAR 2005 - YEAR 2008

MAYBANK BHD, JOHOR BRANCH - Branch Manager


YEAR 2009 - YEAR 2016

EDUCATION

University Hertfordshire, United Kingdom - Bachelor in (hons) Accounting and


Finance
YEAR 2000 - YEAR 2004

17
Nursyuhada Mohd Ali
Assistant Financial Manager

Lumut, Perak

EXPERTISE

Support financial decision-making information by collecting, analyzing, investigating,


and reporting financial data.

EXPERIENCE

MALAYSIAN EXTERNAL TRADE DEVELOPMENT CORPORATION - Accountant


MONTH 2013 - 2016

EDUCATION

Unikl Business School - Diploma in Business Management

year 2006 - year 2009

Unikl Business School- Bachelor in Accounting (Honours)

2009-2013

18
Shahrul Azam Mat Zin
ADMINISTRATION
Kota Bharu, Kelantan

EXPERTISE

Maintaining professional work chores while leading toward professional attitude.


Competent in handling high technology and heavy industry chores.

EXPERIENCE

UMW Holdings, JPN- Human Resources


YEAR 2010-2012

BERKSHIRE HATHAWAY, UK- Office Director


YEAR 2012 - YEAR 2017

EDUCATION

KINGS COLLEGE - Bachelor in Administration


YEAR 2004 - YEAR 2006

cole Normale Suprieure, France - Master of Business Administration

YEAR 2007-2009

19
Nur Aishah Binti Mohamad Rais
Administration Assistant
Tanjong Ipoh, Negeri Sembilan

EXPERTISE

Develop administrative staff by providing information, educational opportunities and


experiential group opportunities.

EXPERIENCE

SAMSUNG COMPANY - Human Resource


YEAR 2013 - 2015

EDUCATION

LIMKOKWING UNIVERSITY - Foundation in Human resource


YEAR 2006 - YEAR 2007

MONASH UNIVERSITY, AUS - Bachelor in Business Administration

YEAR 2008-2012

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3.2 Organizational Chart

CEO
Muhammad Hakim B. Yunus

Secretary
NadiahBintiArifin

Finance Operation Marketing Admin

Financial Manager Operation Manager Marketing Manager Admin Manager


Muhamad Adib Muhamad Syafiq Set Zhi Yang Shahrul Azam

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Assistant Manager Assistant Manager Assistant Manager Admin Assistant
Nursyuhada Mohamad HAfiz Danial Hakim Nur Aishah
3.3 Human Resource Plan

NUMBER MONTHLY
POSITION OF SALARY EPF (13%) SOCSO (2%) TOTAL(RM)
EMPLOYEE (RM)

Chief
Executive 1 10,000 1,300 200 11,500
Officer

Secretary 1 2,500 325 50 2,875

Financial
1 2,800 364 56 3,220
Manager

Asst Financial
1 2,000 260 40 2,300
Manager

Operation
1 3,500 455 70 4,025
Manager

Asst
Operation 1 2,500 325 50 2,875
Manager

Marketing
1 2,200 286 44 2,530
Manager

Asst
Marketing 1 1,500 195 30 1,725
Manager

Administration 1 1,800 234 36 2,070

Asst
1 1,500 195 30 1,725
Administration

TOTAL 10 30,300 3,939 606 34,845

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3.4 Administrative Budget

Fixed Expenses Monthly Expenses Other Expenses


Description
(RM) (RM) (RM)
Building
5,000
Maintenance
Furniture &
20,000
Fittings
Renovation 20,000
Photocopy
5,000
Machine

Rental 15,000

Utilities : Water,
Electricity,
20,000
Telephone,
Internet

Salary 20,600

EPF & SOCSO 3,090

Medical Fee 5,000

Insurance 1,000

Rental Deposit 30,000

Utilities Deposit 5,000

Stationery 200
Business
2,500
Registration
Total 56,000 58,690 37,700

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4.0 PRODUCT OR SERVICE DEVELOPMENT

4.1 Product Technology Overview

4.1.1 Product Image

Grill Electric Gyros Plate

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The example of grill satay

Skewing satay

25
Schematic Diagram

Grilling machine

Grilling Machine

26
Cooling Machine

Cooling machine no 1

Cooling machine no 2

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Conveyor

28
Switch Panel

Button switch

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4.1.2 Core Technologies

Quartz heat lamps

Halogen lamps are incandescent lamps filled with highly pressurized halogen gas. This
gas is combined with a small amount of bromine or iodine which causes tungsten atoms
to regenerate by lessening the evaporation of the filament. This leads to a much longer
life of halogen lamps than incandescent lamps. Due to the high pressure and
temperature halogen lamps produce, they are relatively small and made out of quartz
glass because it has a hotter melting point than standard glass. Common uses for
halogen lamps are table top heaters.

Quartz heat lamps are used in food processing, chemical processing, paint drying, and
thawing of frozen materials. They can also be used for comfort heating in cold areas, in
incubators, and in other applications for heating, drying, and baking. During
development of the satay machine process the quartz infrared lamps were used as a
heating element to grill the satay.

Much of the infrared and visible energy released is caused by the direct heating of
the quartz material, 97% of the near infrared is absorbed by the silica quartz glass tube
causing the temperature of the tube wall to increase, and this causes the silicon-oxygen
bond to radiate far infrared rays. Quartz glass heating elements were originally
designed for lighting applications, but when a lamp is at full power less than 5% of the
emitted energy is in the visible spectrum. So this heating element can save the power
consumption thus this give a multiple saver.

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Counter sensor

Object counters or product counters are important applications used in industries,


shopping malls, thus object counters are widely used devices. They are used at
different places for different purposes and different usages. They can be used as visitor
counter, vehicle counter material or product counter etc.

Thus the application areas are varied where object counters are used. On the conveyor
belt in the industry to count number of objects passed. For example, to count the
number of sate produce.

The counter sensor presented the senses of the object when it passes in front of it. The
sensor uses IR emitter and detector that detects reflected IR light from the object and
gives output pulse. This pulse is counted and displayed on 7 segment display or a LCD.

The object counter is made up of sensor, counter and display.

- Sensor senses any object that passes in front of it and gives output pulse to the
counter
- Counter increments count by one when it gets pulse input from sensor
- Current count is displayed on any type of display like the 7-segment or LCD
display

Conveyer with the counter sensor

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Advantage

The advantages of our machine are to reduce time, cost and manpower. Mostly, these
three advantages are mainly problems for human to make a satay. So, by this
technology we are invented it into the machine that to reduce time from producing 100
satay per hour until 300 satay per hour. It is also be able to save our budget and
manpower. Furthermore, this technology will reduce the air pollution. As we know, when
the foods are grilling, it will produce the carbon combustion which is unhealthy to human
bodies. By using this machine there is no smoke occurred and innovated to impede the
air pollution and lead to a clean environment. In addition, our technology mostly
proposed to a new innovation to produce the frozen foods. The machine has three types
of function which is blending, grilling and freezing it. After frozen, it will pack and
marketed to the stalls, streets and supermarkets. This machine is very worth to a factory
because there are so many function and advantage. Specially benefit for the Muslims,
they do not have to worry about the Halal because the machine will produces the Halal
frozen food sand guaranteed it will be safe and fresh to eat. Every week, we will send
our maintenance to service every each part of the machine. So the machine will be
always clean to process the frozen foods. The process of innovation is invented to
produce the frozen foods in a future and easier to grill. So, everyone can eat frozen
foods at any time easily.

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4.1.3 Function of the product

The brilliant idea that can be adapted to improve the grilling machine that produce a
clean-grilling Satay by applied our new technology which is Grill Electric Gyros Plate.
Grill Electric Gyros Plate will grill in half cooked of foods and does not pollute the air.
The idea encouraged to be more an eco-friendly and green earth. The process of
machine has 3 processes which are blending, grilling in half cook and freezing it. In
addition, this future technology machine produces frozen food previously there are in
the market, which is the innovation designed by the company. Therefore, this frozen
food can be marketed at a supermarkets, shops and restaurants. Conclusion, the main
intention of the creation of this high-technology machine is to produce frozen food which
is the readymade with original taste and savory of foods in accordance with the future
development.

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4.1.4 R&D status

Invention of research and development

1) Grill electric gyros plate


Grill electric gyros plate is a one of our invention that applied in the machine. This
technology is to grill a satay with quartz heat lamps. What is a quart heat lamp?
The quart heat lamps are incandescent lamps filled with highly pressurized
halogen gas. This gas combined with a small amount of bromine or iodine which
causes tungsten atoms to regenerate by lessening the evaporation of the
filament. The quart heat lamp is very suitable to grills a satay and it has long life.
So, the process of combustion satay will be long lasting and perfectly cooked.

2) Skewer robot arm


The function of skewer robot is to prick a satay. Why we are developing this
mechanical technology? That is because we thought it could help our speed of
manufacturing satay. In manually, the skewering satay will be hard and take a lot
of time to skewer one by one of a satay. So, by this innovation can increase the
speed of manufacturing satay and reduce time and manpower to make satay.

3) Packaging
Packaging is the technology of enclosing or protecting products for distribution,
storage, sale and use. This packaging will protect satay from broken when a
process delivery occurs. Our customers will be satisfied when a satay in a good
condition.

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4.1.5 Future product strategy

1) Grill of foods
In the future of our product, satay will have a new machine for combustion.
This new technology can be implemented into supermarkets, streets and
malls. It is coming in a small medium and very suitable for stalls who want
to sell a satay. With this technology, the combustion of satay can be
reducing time and workers. In addition, the manufacturing of satay also
can be increase when a process of burning becomes quick.

2) New skewer robot arm


After have a lot of research, this technology can be improving by upgrade
a skewer robot arm. From what we can see, the skewer robot only has
one prick. So, it is need to upgrade from one prick to 5 pricks arm. The
output of satay will be increase and more consistent.

3) Type of packaging
Before this, the packaging of satay only has one type. But now, the
packaging will be upgrade to three types that is single, family and special
pack. Many type of packaging can make our customers choose which one
to buy. When there have many type of packaging, it will be more attractive
and interesting.

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4.1.6 Intellectual property

1) Industrial design

When we are applying this industrial design, it will protect our shape of an article,
or two dimension features, such as patterns, lines or color. Every dimension of
our product will be protected and secure.

2) Copyright

Intellectual Property is important so that there are no third parties will develop
their product under our companys name. We could also sue them if they are still
using our copyright branding their product. To avoid the situation, we will use
patents and trademark as our IP.

3) Patents

Our company, as the owner of the product has the priority to decide on how or
whether the invention can be used by others.

4) Trademark

For the trademark, it is considered as our signature or mark for our company. As
it can be uses for promotion, it can also secure our product from any third party
developers.

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4.2.1 Benefits & Customer Value

Core values

1) Convenience
This machine can reduce time, cost and manpower. Mostly, these three
advantages are mainly problems for human to make a satay. As we know, to
make a satay is hard and many process because it need a lot of time to blending
and grilling, very high cost and need person to conduct it. With only one machine,
the entire problem can be solved.

2) Speed
The innovation that are providing into this machine is blending, grilling and
freezing. With all this innovation, the manufacturing of satay can be faster than
humans manufacturing. So, by this technology we are invented it into the
machine that to reduce time from producing 100 satay per hour until 300 satay
per hour.

3) Free air pollution


This technology can reduce the air pollution. As we know, when the satays are
grilling, it will produce the carbon combustion which is unhealthy to human
bodies. By using this machine there is no smoke occurred and innovated it to
impede the air pollution and lead to a clean environment.

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Actual values

1) Quality
The market for industrial machine is becoming truly global. So, we take the
advantages to make our quality in high class. The customers that want to buy our
machine can send their audit to check the manufacturing of machine. Every part
of machine is very important because those machines are supply food.

2) Testing
The inspection of machine must be retaining because its very important to know
the strength, breakdown, deficiency and all aspect of machine. From the
inspection, we can know the problem of machine and quickly send back to their
department to fix it. This machine must to sell in good or excellent condition. The
machine will be less quality if it is not function when arrived at our customer.

3) Training
Customers whom want to buy our machine need to training using it to ensure
health and safety in its uses. Their management must send an engineer and
maintenance to provide our training. In our training, there will be involving in work
equipment, the machines instructions, how to run machine and more. It will give
their workers more skills and experience in our machine.

38
Augmented values

1) Warranty
If your performance machine is defective in material or workmanship and you
return it to us within seven years from the date of purchase, we will replace it
or at our option, repair it at no charge to the customers.. If we repair the
defective part, we may use reconditioned replacement parts or materials. If
we replace it, we may replace it with a reconditioned one of the same design.
Any product to be considered under a warranty claim must be returned to
Performance Machine (PM) for quality inspection with original receipt. Upon
confirmation that a product is covered under warranty, PM will repair or
replace parts as quickly as possible. Warranty is limited to product repair or
replacement only. Product purchased through the distributor is subject to the
terms of the Performance Machine warranty above and as such we will repair
or replace product deemed to fall within the warranty terms. Performance
Machine does not issue credits or refunds on products purchased directly
from a distributor.
2) Vendor Development
Vendor is one of the popular techniques of strategic sourcing, which improve
the value they receive from us. Vendor Development can be defined as any
activity that a suppliers performance undertakes to improve a buying firm and
capabilities to meet the buying firms needs. As an example, we are provided
a specialist for machine. In case, if engineer and maintenance have a
problem to solve the machine. So, engineer can calls us to send our specialist
to fix it.
3) Delivery and installation
Process deliver is a part of our responsibility. We help our clients to simplify
the process of deliver. Our standard delivery service takes 3 working days
and we are including with installation service. In installation service, our
company will send 1 engineer and 5 specialists to install the machine. It will
take 8 hours to set up and install the program to machine.

39
4.2.2 Product Uniqueness

1) Types of packaging
There are have 3 packages which is single set, couple set and family bucket. For
single set, it has 5 sticks, peanut sauce, cucumber and rice cubes. For couple
set, the meat is not skewered but it is placed on the plate. In the middle of the
plate are the peanut sauce and the meat, cucumber and rice cubes are mixed in
the peanut sauce. For the family bucket, it has 50 sticks of satay, sliced
cucumber, peanut sauce and rice cubes (nasi impit).

2) Coloured of satay
The machine can produce coloured satay to make it look more interesting to
attract younger customer. The colour comprised of blue, red, green and yellow.
So, the satay will be colourful and can attract people come to eat the satay.

3) Satay Variation
Aside from satay, the machine can produce Shish Kebab which is a type of satay
that has vegetables like cucumber, onions, tomatoes and bell peppers. The
rearrangement of Shish Kebab is meat, vegetable, meat, vegetable and lastly
meat.

4) Hygiene
Other uniqueness is the machine can be cleaned inside it with automatically by
using hot water from the boiler tank. This will ensure cleanliness of the machine
for a long period of time.

40
5.0 MARKETING PROGRAMS

5.1 Marketing Overview

5.1.1 Product Strategy

Satay King main products strategy was to be the world first ever Specialist Satay
Grilling Maker, with the special technologies that have been invented by our specialist
engineer in our company to make a perfect satay in a single massive machine maker,
that can works massively in few process such as Blending, Skewing, Grilling,
Packaging, and Frozen process. The benefit of having our machine is that to save time
and use less man power to process massive production of satay in a single time.
Moreover, to compare with any other brands that has established with their products, for
example Nova, Tefal and George Foreman they have the same weakness game that
they come out with the small machine that does not have any power or perform to
produce massively in a single time and perfectly for satay. Next, as the request of our
local satay maker reseller needed this kind of invention machine to help them with the
problem that they have been go through after all this years. This request is not only from
Malaysia but also, Indonesia, Thailand, and Singapore as their places needed this
innovative machine to help them in the making of satay.

5.1.2 Pricing Strategy

Satay King pricing strategy is basically base on price skimming, our company do a
charge a high price because the company have substantial competitive advantage
parallel with Satay King goal to be the world first massive satay machine. However, the
advantage is not sustainable. The high price tends to attract new competitors from other
brands into the market, and the price inevitably falls due to increased supply, but this
can be handle with reconstruct of our strategy and innovating our product, as what
technologies does nowadays as we can see.

41
5.1.3 Promotion Strategy

Promotion for our Satay King represents all of the communications that a marketer
may use in the marketplace. Promotion has four distinct elements: advertising,
public relations, personal selling and sales promotion. A certain amount of crossover
occurs when promotion uses the four principal elements together, which is common
in film promotion.

Newspapers/magazines

This is one of our promotion strategies in introducing our company.


Newspaper is a part of medium in transferring information to the residents in
our marketplace. So, we will advertise our product including our companys
contact details. However, in order to minimize the cost, we will choose the hot
selling newspaper and magazines in the residential area. It also will reduce
the waste of advertising useless promotions. This company promotion will do
once in two month. Our company will also do this promotion around the Asia
area.

Signboards and banners

Signboard is the way we introduce our company especially for our


premises. It is because, we will locate the signboard directly in front of our
building so that when people pass by, they will know where we are and
what services and products we are producing. We will locate our banners
at the main locations where people always come or pass by for example
is, at junctions of the town area, factory area and so on. The total of the
banners is around five depends on how much place we will locate them.

42
Website
Other alternative that we will use is the website that has information about our
company and products. In spite of that, we also will use social networking
sites such as blog, Facebook, twitter, and so on. Online selling is important as
it is the easiest way to buy something so people can make orders by only
access to the internet. Our company will focus at this part because it will help
our company brand getting knowing by people when our company having
exhibition.

Exhibition
Our company will also having exhibition every two month, because if will help
our company selling product more easy. In addition, our company also will
have exhibition at oversea twice per year.

5.1.4. Distribution strategy

Manufacturer Consumer

In this section we will sell our product to consumer. We will not going through retailer or
wholesaler because we want to save our budget.

Manufacturer Industrial user

In this section we will sell our product to industrial user. We will not going through
retailer or wholesaler because we want industrial to buy more our product when we give
them the offer.

43
Sales Forecast

2017

Product Month Quantity Variable Total Cost


cost/unit
January 10 RM 12,000 RM 120,000
February 10 RM 12,000 RM 120,000
March 10 RM 12,000 RM 120,000
April 10 RM 12,000 RM 120,000
May 10 RM 12,000 RM 120,000
Grill Electric June 10 RM 12,000 RM 120,000
Gyros Plate
July 10 RM 12,000 RM 120,000
August 10 RM 12,000 RM 120,000
September 10 RM 12,000 RM 120,000
October 10 RM 12,000 RM 120,000
November 10 RM 12,000 RM 120,000
December 10 RM 12,000 RM 120,000
Total Quantity 120
Total Cost of Goods Sold RM 1,440,000
Sold price per unit RM 20,000
Total revenue RM 2,400,000

44
2018

Product Month Quantity variable Total cost


cost/unit
January 15 RM 12,000 RM 180,000
February 15 RM 12,000 RM 180,000
March 15 RM 12,000 RM 180,000
April 15 RM 12,000 RM 180,000
May 15 RM 12,000 RM 180,000
Grill Electric Gyros June 15 RM 12,000 RM 180,000
Plate July 15 RM 12,000 RM 180,000
August 15 RM 12,000 RM 180,000
September 15 RM 12,000 RM 180,000
October 15 RM 12,000 RM 180,000
November 15 RM 12,000 RM 180,000
December 15 RM 12,000 RM 180,000
Total Quantity 180
Total Cost of Goods Sold RM 2,160,000
Sold price per unit RM 20,000
Total revenue RM 3,600,000

45
2019

Product Month Quantity variable Total cost


cost/unit
January 20 RM 240,000 RM 450,000
February 20 RM 240,000 RM 450,000
March 20 RM 240,000 RM 450,000
April 20 RM 240,000 RM 450,000
May 20 RM 240,000 RM 450,000
June 20 RM 240,000 RM 450,000
Grill Electric
July 20 RM 240,000 RM 450,000
Gyros Plate
August 20 RM 240,000 RM 450,000
September 20 RM 240,000 RM 450,000
October 20 RM 240,000 RM 450,000
November 20 RM 240,000 RM 450,000
December 20 RM 240,000 RM 450,000
Total Quantity 240
Total Cost of Goods Sold RM 5,400,000
Sold price per unit RM 20,000
Total revenue RM 9,000,000

46
RM9,000,000
9000000

8000000

7000000

6000000

5000000

RM3,600,000
4000000

3000000 RM2,400,000

2000000

1000000
2017 2018 2019
0
1 2 3

Year Total Revenue

Graph 1: Sales forecast for 3 years

47
Breakeven point

Calculation:

Selling price (per unit): RM 20,000

Variable cost (per unit): RM 12,000

Fixed cost : RM 144,000

( ) = ( ) ( )

= 20,000 12,000

= 8,000


() =
Contribution (per unit)

144,000
=
8,000

= 18 units


() = ( )
Contribution (per unit)

144,000
= 20,000
RM 8,000

= RM 360,000

48
Calculation for Breakeven Analysis

Variable cost = Variable cost (per unit) x No. of units


= RM 12,000 x 18
= RM 216,000

Total cost = Variable cost + Fixed cost


= RM 216,000 + RM 144,000
= RM 360,000

Total revenue = Selling price (per unit) x No. of units


= RM 20,000 x 18
= RM 6,480,000

Breakeven Analysis
700000

600000

500000

400000

300000

200000

100000

0
0 10 20 30 40 10 12 14 16 18 20 22 224 26 28 30

Fixed Cost (RM) Total Cost (RM) Total Revenue (RM)

Graph 2: Breakeven Analysis

49
5.1.5 Breakdown of sales for 3 years

2017

Jan Feb Mac Apr May Jun Jul Aug Sep Oct Nov Dec
Starting
10 12 12 9 11 11 9 9 8 9 9 10
Inventory
Sold
8 10 13 8 10 12 10 11 9 10 9 10
Inventory
Quantity
10 10 10 10 10 10 10 10 10 10 10 10
Inventory
Balance 12 12 9 11 11 9 9 8 9 9 10 10
Total Cost
240,000 240,000 180,000 220,000 220,000 180,000 180,000 160,000 180,000 180,000 200,000 200,000
Balance (RM)

2018

Jan Feb Mac Apr May Jun Jul Aug Sep Oct Nov Dec
Starting
10 10 15 17 17 20 17 17 19 15 12 10
Inventory
Sold
15 10 13 15 12 18 15 13 19 18 17 16
Inventory
Quantity
15 15 15 15 15 15 15 15 15 15 15 15
Inventory
Balance 10 15 17 17 20 17 17 19 15 12 10 9
Total Cost
200,000 300,000 340,000 340,000 400,000 340,000 340,000 380,000 300,000 240,000 200,000 180,000
Balance (RM)

50
2019

Jan Feb Mac Apr May Jun Jul Aug Sep Oct Nov Dec
Starting
9 14 14 19 19 22 22 27 27 28 28 31
Inventory
Sold
15 20 15 20 17 20 15 20 19 20 17 20
Inventory
Quantity
20 20 20 20 20 20 20 20 20 20 20 20
Inventory
Balance 14 14 19 19 22 22 27 27 28 28 31 31
Total Cost
280,000 280,000 380,000 380,000 440,000 440,000 540,000 540,000 560,000 560,000 620,000 620,000
Balance (RM)

51
5.2 Marketing Budget

Other monthly
Fixed assets cost Monthly expenses
expenses

Computer 4,000

Air-cond 1,000

Photocopy
5,000
machine

Salary 3,700

EPF & SOCSO 555

Allowance 10,000

Exhibition 30,000

Signboard 5,000

Banner 200

Sticker 100

Website 200

Total 15,000 4,255 40,500

52
6.1 OPERATIONAL PLAN

6.1 Operational Setup

6.1.1 Process Flow chart

Start

Hardware
Installation

Software
Installation

Quality
Check

Packing

53

End
Hardware installation

1. Sensor
A sensor is a device that detects and responds to some type of input from the
physical environment. It will detect the number of satay are producing.

2. Gyros plate
Gyros plate is a process of burning satay.

3. Conveyor
A conveyor system is a common piece of mechanical handling equipment that
moves materials from one location to another. Conveyor system allows quick and
efficient transportation for a wide variety of material, which make them very
popular in the material handling and packaging industries.

4. Skewer robot arm


A skewer robot arm is a process of prick satay.

5. Skewer box
In skewer box, it will have skewers to supplies for skewer robot arm. It will store a
skewer.

6. Push button
A push button or simply button is a simple switch mechanism for controlling some
aspect of a machine or a process.

7. Blender
A blender is an appliance to use to mix, puree, or emulsify food and other
substances. The blender made from stainless steel.

54
8. Frozen
It will have a refrigerator for food storage. The lower temperature lowers the
reproduction rate of bacteria, so the refrigerator reduces the rate of spoilage.

9. Screw
Mostly, all equipment is using screw even machine also. Screws are used to hold
objects together and to position objects.

Software installation

1. Programming C++
The installation of programming C++ is very important to make all system is
running. There will control the process of bleeding, skewering, grilling, packaging
and freezing.

2. Arduino
Arduino is an open source, computer hardware and software company, project,
and user community that designs and manufactures microcontroller kits for
building digital devices and interactive objects that can sense and control objects
in the physical world. It will help programming C++ in controlling system.

Quality control (QC)

Quality control (QC) is a procedure or set of procedures intended to ensure that a


manufactured product or performed service adheres to a defined set of quality criteria or
meets the requirement of the client or customer.

Packaging

Packaging is the technology of enclosing or protecting products for distribution, storage,


sale, and use. Packaging also refers to the process of designing, evaluating, and
producing packages. Packaging can be described as a coordinated system of preparing
goods for transport, warehouse, logistics, sale, and end use. Packaging contains,
protects, preserves, transports, informs, and sells.

55
6.1.2 Layout Plan of Factory

Maintenance CAFETERIA
Room

(PROCESS
AREA)
OFFICE
BLENDING
SKEWERING
GRILLING
Main entrance
PACKAGING
FROZEN

DEMO AREA OR
SHOWROOM

56
DELIVERY
Layout Plan Guideline

= Door access

= Sidewalk

1) Main Entrance
2) Second entry
3) Entry for Frozen room Department

By passing through the main entrance we can get a very easy access to Office or
Showroom, our visitor or customer are not allow to go to our actual production area
unless by staff access card, visitor access is only in Green and Yellow area. For
Blue, Red and Orange area only can be access by staff and top management.
Production is begin from Blue area which is maintenance room next move to Red
area which is processing area, lastly move to orange area which is delivery area.
Cafeteria is open for all visitor and staff which is in placed Olive area.

57
6.1.3 Materials Requirement Planning (MRP)

Material requirement planning (MRP) is a production planning and inventory control


system. An MRP integrates data from production schedules with that from inventory and
the bill of materials (BOM) to calculate purchasing and shipping schedules for the parts
or components required to build a product. From our company, it will have a bill of
materials (BOM), lead times, inventory date, and purchasing data. This entire will go to
Master Production Schedule (MPS).

The objective for this MRP is

To ensure materials are available for production and products are available for
delivery to consumers.
Maintain the lowest possible material and product levels in store.
Plan manufacturing activities, delivery schedules and purchasing activities.

MRP System

58
Four inputs for Master Production Schedule (MPS);

1) Bill of materials
A bill of materials (BOM) is a list of the parts or components that are required to
build a product. The BOM provides the manufacturers part number (MPN) and
the quantity needed for each component. The managers can see what materials
are needed to complete each level of production

Requirement components for completing this machine

59
2) Inventory data
An inventory control system is a system that encompasses all aspects of
managing a companys inventories like purchasing, shipping, receiving, tracking,
warehouse and storage. All data will go through Master Production Schedule
(MPS). Our workers can check the data from MPS.

Check list for components:-


1) Sensor
2) Gyros plate
3) Conveyor
4) Skewer robot arm
5) Skewer box
6) Push button
7) Blender
8) Frozen
9) Screw
10) And more:-

60
3) Purchasing data
Using purchased data can help businesses gain insight into tracking and
understanding customer purchases. From this data, our marketing can identify
opportunities and gaining more customers. It will have a data from customer that
want to buy our product.

No. Items RM/ Per Quantity Total (RM)


1. Sensor 500 2 1,000
2. Gyros plate 4,500 1 3,500
3. Conveyor 1,500 2 2,000
4. Skewer Robot 1,000 1 1,000
Arm
5. Skewer box 500 1 500
6. Push button 250 1 150
box
7. Blender 2,000 1 1,800
8. Frozen 2,500 1 1,800

9. Screw 0.83 300 250

Total 12,000

61
4) Lead times
In certain planning situations, the system may use lead time to approximate the
time needed to acquire, make, or receive an item. So, the product will go to every
place congruously with a schedule. The schedule must cover a time frame long
enough to produce the final product.

Items information:-
Item Lead time Unit measure Code
(Weeks)
Sensor 1 Each A
Gyros plate 2 Each A
Conveyor 2 Each B
Skewer robot arm 1 Each B
Skewer box 1 Each B
Push button 1 Each C
Blender 2 Each A
Frozen 2 Each A

Screw 1 Each C

Category A items are the most important inventory items and in total are
responsible for 80% of inventory cost.
Category B items are only moderately important inventory items and in
total are responsible for 15% of inventory cost.
Category C items are relatively unimportant inventory items and in total
are responsible for 5% of inventory cost.

62
6.1.4 MACHINE AND EQUIPMENT

LATHE MACHINE

A machines that used to do various operation like cutting, knurling, sanding, drilling or
deformation on its axis. This machine is very suitable for making precise operation. This
machine require single operator to operate. Thus reducing workforce needed. Even
though workforce reduced, but machine maintenance and equipment quite high. Image
below is the example of lathe machine.

Lathe machine

Lathes are used in woodturning, metalworking, metal spinning, thermal spraying, parts
reclamation, and glass-working. Lathes can be used to shape pottery, the best-known
design being the potter's wheel. Most suitably equipped metalworking lathes can also
be used to produce most solids of revolution, plane surfaces and screw threads or
helices. Ornamental lathes can produce three-dimensional solids of incredible
complexity. The work piece is usually held in place by either one or two centers, at least
one of which can typically be moved horizontally to accommodate varying work piece
lengths. Other work-holding methods include clamping the work about the axis of
rotation using a chuck or cullet, or to a faceplate, using clamps or dogs.

63
COMPUTER NUMERICAL CONTROL (LASER) MACHINES

This machines also known as CNC machines use high-power laser through optic. It is
generated by laser beam to cut through material such as metal, acrylic and etcetera.

A typical commercial laser for cutting materials would involve a motion control system to
follow a CNC or G-code of the pattern to be cut onto the material. The focused laser
beam is directed at the material, which then either melts, burns, vaporizes away, or is
blown away by a jet of gas, leaving an edge with a high-quality surface finish. This
machine is very suitable to cut metal sheet and pieces precisely and fast while keeping
pollution at lowest. A highly skilled worked were needed to operate this machine since it
requires numerical control command.

CNC laser cutter machine

Quality produced by this machine is superb, since it use cutting edge technology in it,
making every work done perfectly. In other hand, the cost for this machine is raking high
due to its superiority. This machine is very suitable for precise workhorse.

64
CONVEYOR BELT

Conveyor belt system are often used in production line because of it capability and
durability. The usage of this system ease user moving any part from one point to
another within short period of time without requiring any workforce. It is considered a
labor saving system that allows large volumes to move rapidly through a process,
allowing companies to ship or receive higher volumes with smaller storage space and
with less labor expense. This system is programmable to move within command, thus
keeping workflow organized every time. Besides that, the size and length of the
conveyor vary upon size of industry from smallest form (sushi conveyor) to biggest
scale (mining conveyor). Belt conveyors are the most commonly used powered
conveyors because they are the most versatile and the least expensive. Product is
conveyed directly on the belt so both regular and irregular shaped objects, large or
small, light and heavy, can be transported successfully. These conveyors should use
only the highest quality premium belting products, which reduces belt stretch and results
in less maintenance for tension adjustments. Belt conveyors can be used to transport
product in a straight line or through changes in elevation or direction. In certain
applications they can also be used for static accumulation or cartons. Diagram below is
the sample image of conveyor system in production line.

Production line conveyor system

65
FORKLIFT

This versatile machine can be used whether in production line or in warehouse to lift
and move product into container. Forklifts are a critical element of warehouses and
distribution centers. Its imperative that these structures be designed to accommodate
their efficient and safe movement. In the case of Drive-In/Drive-Thru Racking, a forklift
needs to travel inside a storage bay that is multiple pallet positions deep to place or
retrieve a pallet. Often, forklift drivers are guided into the bay through guide rails on the
floor and the pallet is placed on cantilevered arms or rails. These maneuvers require
well-trained operators. Since every pallet requires the truck to enter the storage
structure, damage is more common than with other types of storage.

In designing a drive-in system, dimensions of the forklift, including overall width and
mast width, must be carefully considered. This machine has rear wheel steering
operation to increase the maneuverability through tight corner inside the warehouse. It
can load specific amount of load at one time and specified forward gravity depending on
its size. The workload information is stated on the nameplate of each unit (forklift).
Putting load on the L fork exceed the load limit may cause the overload maneuver and
tip-over accident often occurs.

Industrial forklift

66
SOLDERING ROBOTIC MACHINE

Soldering robotic machine is a very useful device because manpower is not enough and
less precise compared to this machines. This machine was designed to increase
production and precision in soldering automation for mass production line and keeping
errors at lowest rate.

Servo motors (AC) that run inside the machines, make it best in linear soldering.
Equipped with its multi-joint axis arm, it solves any automated production issues occurs
compare to labour job. Meanwhile, labour can be reduced drastically. Various
applications can be added for automation and soldering problems. The series have
achieved high speed, accuracy and quality, which are able to automate even difficult
soldering application samples. Even though, we paying high for what we are getting, the
price point is quite high, but for its quality and precision assurance it is a valuable
investment.

Multi-joint axis robotic arm

67
6.1.5 Manpower Requirements
Salary Expectation

No Designation Basic Salary Medical Allowance


(RM) (RM)
1 Project Engineer 3,000 500
2 Project Supervisor 2,500 500
3 Project Technician 2,000 500
4 Quality Assurance 2,000 500
5 Quality Control 2,000 500
6 Operator Machine 1,500 200
7 Maintenance 1,200 200
8 Store Keeper 1,000 200
Total 15,200 3,100

Monthly Budget
No Designation Basic Salary Medical Quantity Total
(RM) Allowance (Worker) (RM)
(RM)
1 Project Engineer 3,000 500 2 7,000
2 Project Supervisor 2,500 500 8 24,000
3 Project Technician 2,000 500 12 30,000
4 Quality Assurance 2,000 500 2 5,000
5 Quality Control 2,000 500 2 5,000
6 Operator Machine 1,500 200 40 68,000
7 Maintenance 1,200 200 15 21,000
8 Store Keeper 1,000 200 2 2,400
Total (RM) 162,400

Annual Budget
No Designation Basic Salary Medical Quantity Total
(RM) Allowance (Worker) (RM)
(RM)
1 Project Engineer 36,000 6,000 2 84,000
2 Project Supervisor 30,000 6,000 8 288,000
3 Project Technician 24,000 6,000 12 360,000
4 Quality Assurance 24,000 6,000 2 60,000
5 Quality Control 24,000 6,000 2 60,000
6 Operator Machine 18,000 2,400 40 816,000
7 Maintenance 14,400 2,400 15 252,000
8 Store Keeper 12,000 2,400 2 28,800

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6.1.6 Location for our company

The location of the business gives significant impact in the business and cost structure.
In establish company, problem connected with location a can arise in many ways. We
choose this location base on a few aspect that has been consider which are the
infrastructure, the system of transportation and the environment.

Our business is located at No5, Jalan Kemajuan, Bangi Industrial Estate, Bandar
Baru Bangi,43650 Selangor Darul Ehsan. It located at near the highway. So its easy for
customer to find our company. It is also has a good drainage system and low flood risk.
This location also located at good and strategic area because this area situated near
and accessible to the customer. The selection is depending upon a few factors such as
strategic area and suitable to operate the business.

Other advantages of our location are:

Nearest to customers:

Located nearby the resident.


Large population

Nearest to suppliers:

The organization has a large requirement for material inputs.


My company can reduce costs to buy equipment to use for my product.

Access to transport link:

Easiest way to access the transport link such as highways.


My location near to airport, Port Klang and reduce costs to send our product
to another country.

Access to basic utilities:

Energy suppliers.
Energy other infrastructure.

Access to other infrastructure:

69
Include reliable, internet it network and satellite.
Our location near to IT specialist and become easy if my product have a
problem.

We choose Bangi because increasing of population. It means increasing work demands

Satay King Company

70
Inside of our factory

Maps of our company

71
6.2 Operational Budget

Other monthly
Fixed assets cost Monthly expenses
expenses

Computer 4,500

Air-cond 1,000

Rental of lorry 4,500

Raw materials 30,000

Installation of
25,000
Machine CNC

Salary 168,400

EPF & SOCSO 25,260

Printer 200

Telephone bill 100

Transport fee
15,000
(forklift)

Toll 300

Courier 150

Petrol 500

Total 20,700 223,260 30,950

72
7.0 Financial Projection

7.1 Financial Overview

Administration

ADMINISTRATION BUDGET

Fixed assets RM

Building maintenance 5,000

Furniture & Fittings 20,000

Photocopy machine 5,000

Renovation 20,000

Medical fee 5,000

Insurance 1,000

Monthly expenses

Other expenses 35,000

Salary 20,600

EPF & Socso 3,090

Other expenses

Other expenses deposit 35,000

Stationary 200

Business Registration 2,500

TOTAL 152,390

73
Marketing

MARKETING BUDGET

Fixed assets RM

Computer 4,000

Air-cond 1,000

Photocopy machine 5,000

Signboard 5,000

Monthly expenses

Salary 3,700

EPF & Socso 555

Other expenses

Allowance 10,000

Exhibition 30,000

Banner 200

Sticker 100

Website 200

TOTAL 59,755

74
Operation

OPERATION BUDGET

Fixed assets RM

Computer 4,500

Air-cond 1,000

Printer 200

Transport fee (forklift) 15,000

Monthly expenses

Salary 168,400

EPF & Socso 25,260

Rental of lorry 4,500

Installation of machine CNC 25,000

Telephone 100

Other expenses

Raw material 30,000

Toll 300

Courier 150

Petrol 500

TOTAL 273,910

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7.1.1 PROJECT IMPLEMENTATION COST

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.

Fixed assets RM

Administrative 56,000

Marketing 15,000

Operation 20,700

Monthly expenses

Administrative 58,690

Marketing 4,255

Operation 36,500

Other expenses

Administrative 37,700

Marketing 40,500

Operation 30,950

Contingencies (10%) 29,729.50

TOTAL 327,024.50

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7.1.2 Source of fund

Our sources of fund depends on the relative ease with which funds of different types are
obtainable and this in turn is affected by the character of the company's assets the
seasonal and cyclical fluctuations in it volume of business, it is rapidity of growth, it is
demonstrated or anticipated stability of profits and continuity of operations and any
other aspects of it operations which affects it position as a potential borrower.

Furthermore, our fund which is from Bank Negara, Malaysia is very helpful to improve
our financial company. Thus, this is an initiative manner to increase our financial and
rolling our financial company seamlessly. The amount of our funds is RM 500,000 as
well which ideally that could be used for the company business. However, it only can be
used for the company business and must be paid promptly as the company is the
borrower of Bank Negara.

Our company drawback of borrowing money is the interest that must be paid to the
lender. This intention of sources of fund included to make profit by selling a product for
more than it costs to produce. This is the most basic source of funds for our company
and hopefully the method that brings in the most money. On the other hand, our
company could make profit by selling a product for more than it costs to produce. This is
the most basic source of funds of our company and hopefully it brings in the most
money.

In a conclusion, our company would bring in all of its cash simply by selling goods and
services for a profit. Our company has to raise funds at some point to develop products
and expand into new markets.

77
7.1.3 P&L projections for 3 years (in RM)

Profit and Loss

2017 2018 2019


Sales 2,400,000 RM 3,600,000 RM 9,000,000
less: Cost of sales 1,440,000 2,160,000 5,400,000
Gross Profit 960,000 1,440,000 3,600,000
less:
General & Administrative Expanses
Building Maintenance 5,000 5,000 5,000
Furniture & Fittings 20,000 0 0
Renovation 20,000 20,000 20,000
Rental 15,000 15,000 15,000
Utilities : Water, Electricity, Telephone, Internet 20,000 20,000 20,000
Salary 20,600 20,600 20,600
EPF & SOCSO 3,090 3,090 3,090
Medical Fee 5,000 5,000 5,000
Insurance 1,000 1,000 1,000
Rental Deposit 30,000 30,000 30,000
Utilities Deposit 5,000 5,000 5,000
Stationery 200 200 200
Business Registration 2,500 0 0
Total G&A 147,390 124,890 124,890
Sales & marketing expenses
Computer 4,000 4,000 4,000

78
Air-cond 1,000 1,000 1,000
Photocopy machine 5,000 5,000 5,000
Salary 3,700 3,700 3,700
EPF & SOCSO 555 555 555
Exhibition 30,000 30,000 30,000
Signboard 5,000 5,000 5,000
Banner 200 200 200
Sticker 100 100 100
Website 200 200 200
Total S & M 49,755 49,755 49,755
Other income 500,000 500,000 500,000
PBDIT 1,262,855 1,765,355 3,925,355
less: Amortization of R&D 0 0 0
Depreciation 51,050 51,050 51,050
PBIT 1,211,805 1,714,305 3,874,305
less: Financial charge 0 0 0
Profit/(loss) before taxation 1,211,805 1,765,355 3,925,355
less: Taxation 121,180.50 176,535.50 392,535.50
Profit/(loss) after taxation 1,090,624.5 1,588,819.5 3,532,820
Minority Interest 0 0 0
Distributable profit 1,090,624.50 1,588,819.50 3,532,820
less: Dividend 0 0 0
Retained profit/(loss) for the year 1,090,624.50 1,588,819.50 3,532,820
Retained profit/(loss) b/fwd 0 1,090,624.50 2,679,444
Retained profit/(loss) c/fwd 1,090,624.50 2,679,444.00 6,212,264

79
7.1.4 Cash flow projections for year 1-monthly

JAN FEB MAC APR MAY JUN JUL AUG SEP OCT NOV DEC
budget start 1000000 273910 222260 253210 222260 253210 222260 253210 222260 253210 222260 253210
Income sell 160,000 200000 260000 160000 200000 240000 200000 220000 180000 200000 180000 200000
Income service 0 0 0 0 0 0 100000 120000 100000 90000 100000 100000
Total (RM) 1160000 473910 482260 413210 422260 493210 522260 593210 502260 543210 502260 553210
Income service 0 0 0 0 0 0 100000 120000 100000 90000 100000 100000
Total (RM) 1160000 473910 482260 413210 422260 493210 722260 833210 702260 723210 702260 753210

Admin budget
Fixed assets cost 56,000 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690
Other monthly expenses 37,700 0 37,700 0 37,700 0 37,700 0 37,700 0 37,700 0
Total (RM) 152390 58690 96390 58690 96390 58690 96390 58690 96390 58690 96390 58690

Marketing budget
Fixed assets cost 15000 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255
Other monthly expenses 40500 0 40500 0 40500 0 40500 0 40500 0 40500 0
Total (RM) 59755 4255 44755 4255 44755 4255 44755 4255 44755 4255 44755 4255

Operation budget
Fixed assets cost 20700 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260
Other monthly expenses 30950 0 30950 0 30950 0 30950 0 30950 0 30950 0
Total (RM) 273910 222260 253210 222260 253210 222260 253210 222260 253210 222260 253210 222260

Total Overall(RM) 673945 188705 87905 128005 27905 208005 327905 548005 307905 438005 307905 468005

80
7.1.5 Cash flow projections for 3 years

2017

JAN FEB MAC APR MAY JUN JUL AUG SEP OCT NOV DEC
budget start 1000000 273910 222260 253210 222260 253210 222260 253210 222260 253210 222260 253210
Income sell 160,000 200000 260000 160000 200000 240000 200000 220000 180000 200000 180000 200000
Income service 0 0 0 0 0 0 100000 120000 100000 90000 100000 100000
Total (RM) 1160000 473910 482260 413210 422260 493210 522260 593210 502260 543210 502260 553210
Income service 0 0 0 0 0 0 100000 120000 100000 90000 100000 100000
Total (RM) 1160000 473910 482260 413210 422260 493210 722260 833210 702260 723210 702260 753210

Admin budget
Fixed assets cost 56,000 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690
Other monthly expenses 37,700 0 37,700 0 37,700 0 37,700 0 37,700 0 37,700 0
Total (RM) 152390 58690 96390 58690 96390 58690 96390 58690 96390 58690 96390 58690

Marketing budget
Fixed assets cost 15000 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255
Other monthly expenses 40500 0 40500 0 40500 0 40500 0 40500 0 40500 0
Total (RM) 59755 4255 44755 4255 44755 4255 44755 4255 44755 4255 44755 4255

Operation budget
Fixed assets cost 20700 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260
Other monthly expenses 30950 0 30950 0 30950 0 30950 0 30950 0 30950 0
Total (RM) 273910 222260 253210 222260 253210 222260 253210 222260 253210 222260 253210 222260

Total Overall(RM) 673945 188705 87905 128005 27905 208005 327905 548005 307905 438005 307905 468005

81
2018

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
budget start 380660 344605 359400 325045 419840 365485 530280 535925 630720 716365 881160 926805
Income sell 300000 200000 260000 300000 240000 360000 300000 260000 380000 360000 340000 320000
Income service 150000 100000 100000 80000 100000 90000 100000 120000 100000 90000 100000 100000
Total 830660 644605 719400 705045 759840 815485 930280 915925 1110720 1166365 1321160 1346805

Admin budget
Fixed assets cost 56,000 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690
Other monthly expenses 37,700 0 37,700 0 37,700 0 37,700 0 37,700 0 37,700 0
Total 152390 58690 96390 58690 96390 58690 96390 58690 96390 58690 96390 58690

Marketing gudget
Fixed assets cost 15000 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255
Other monthly expenses 40500 0 40500 0 40500 0 40500 0 40500 0 40500 0
Total 59755 4255 44755 4255 44755 4255 44755 4255 44755 4255 44755 4255

Operation gudget
Fixed assets cost 20700 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260
Other monthly expenses 30950 0 30950 0 30950 0 30950 0 30950 0 30950 0
Total 273910 222260 253210 222260 253210 222260 253210 222260 253210 222260 253210 222260

Total Overall (RM) 344605 359400 325045 419840 365485 530280 535925 630720 716365 881160 926805 1061600

82
2019

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
budget start 1601320 1565265 1780060 1785705 1980500 2026145 2230940 2236585 2471380 2557025 2761820 2807465
Income sell 300000 400000 300000 400000 340000 400000 300000 400000 380000 400000 340000 400000
Income service 150000 100000 100000 80000 100000 90000 100000 120000 100000 90000 100000 100000
Total (RM) 2051320 2065265 2180060 2265705 2420500 2516145 2630940 2756585 2951380 3047025 3201820 3307465

Admin budget
Fixed assets cost 56,000 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690 58,690
Other monthly 37,700 0 37,700 0 37,700 0 37,700 0 37,700 0 37,700 0
expenses
Total (RM) 152390 58690 96390 58690 96390 58690 96390 58690 96390 58690 96390 58690

Marketing budget
Fixed assets cost 15000 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255 4255
Other monthly 40500 0 40500 0 40500 0 40500 0 40500 0 40500 0
expenses
Total (RM) 59755 4255 44755 4255 44755 4255 44755 4255 44755 4255 44755 4255

Operation budget
Fixed assets cost 20700 0 0 0 0 0 0 0 0 0 0 0
Monthly expenses 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260 222260
Other monthly 30950 0 30950 0 30950 0 30950 0 30950 0 30950 0
expenses
Total (RM) 273910 222260 253210 222260 253210 222260 253210 222260 253210 222260 253210 222260

Total Overall (RM) 1565265 1780060 1785705 1980500 2026145 2230940 2236585 2471380 2557025 2761820 2807465 3022260

83
7.1.6 Performa Balance Sheet for 3 years (in RM)

2017 (RM) 2018 (RM) 2019 (RM)

Research & development (net) 0 0 0


Investment 0 0 0
Fixed assets (net)
Building 180,000 180,000 180,000
Furniture & Fitting 20,000 20,000 20,000
Vehicles 69,000 54,000 54,000
Others 0 0 0
269,000 254,000 254,000
Current assets
Trade debtors 0 0 0
Cash and bank balances 3,712,200 7,097,230 27,225,150
Prepayment & deposits 0 125,000 127,500
Stock (non tradeable) -200,000 -180,000 -620,000
3,712,200 7,042,230 26,732,650
less: Current liabilities
Other creditors 0 0 0
Trade creditors 0 0 0
Accruals 0 0 0
Short-term loans 0 0 0

Net current assets 3,712,200 7,042,230 26,732,650


Financed by:
Share capital (paid-up capital) 500,000 500,000 500,000
Share premium reserves 0 0 0
Retained profit c/fwd 1,090,624.50 2,679,444 6,212,264
Shareholders' networth 1,590,625 3,179,444 6,712,264
Long-term liabilities
Grants 0 0 0
Debenture
Long-term loans 500,000 304,496 101,492
Capital employed 2,090,625 3,483,940 6,813,756

84
8.0 APPENDICES

Market Analysis

Satay King is a new company that provides frozen food to our customer. Satay
King located in Bangi because we have made a survey from citizen of Bangi area as
figure shown below. The result showed that they love satay very much and satay is their
preferred food. Bangi is suitable area to sell satay and the area is easy to find.
Furthermore, Bangi is the strategic area to open satay kings company. For the people
from the north of Malaysia that going to their hometown at the south of the Malaysia can
stop buy Bangi to taste our frozen food. So we can increase our income by putting
banner and advertisement in north-south highway to attract our customer. Besides, the
major reason for the customers to return to a specific frozen food shop is a great
tasting, quick service and pleasant atmosphere. Although, as stated before, frozen food
consumption is uniformly across different income segments, Satay King will price its
product offerings competitively. We strongly believe that selling satay with a great
service in a nice setting will help us build a strong base of loyal clientele.

4.5

3.5

3
Result
2.5
Like Satay
2

1.5 Dislike
Satay
1

0.5

0
Category 1

Graph 3: Result of Bangis Citizen Area

85