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GROUP MEMBER (Gang 17) MOHD. NORIZAM MD. SALLEHIC NO: 670703-01-6045STUDENT ID:CGS00534317 REIDZUAN BIN AHMADIC NO: 691218-04-5275STUDENT ID: CGS00541817 MUHAMMED FUSEINI INUSAHPASPORT NO: D 0002277STUDENT ID: CGSGH00001917 KAMALUL BAHARI ABDUL JALALIC NO: 830213-06-5485STUDENT ID: CGS00534017

Year 2011 Business Plan Proposal

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CONTENT

1. PROPOSAL TITLE/GROUP2. BACKGROUND3. OBJECTIVE4. OUR FINDING5. SALES & PROFIT COMPARISON6. COMPARISON GRAPHS7. THE TECHNOLOGY8. INVESTMENT REQUIRED9. RECOMMENDATION10.REASONS

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Proposal Title

To Participate in “High Speed Broad Band to Homes” Project

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Background

Company current conventional market growth are almost stagnant.

Therefore this paper is to present the Proposal Business Plan for 2011 to the top management after carrying out a study in determining a new market/technology to explore for company future expansion, growth and survival.

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Objectives

To secure mandate and approval from top management on the followings;

1) To participate in the “High Speed Broad Band to Homes” projects.

2) To investment in Micro Trenching Technology.

Buying micro trenching machines Setup teams to carry out job using this

technology.

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Our Findings

“High Speed Broad Band to Homes” is booming at the moment.

With most of the “Telcos” are participating, the market is growing so fast that the demands are currently greater than the supply. RM 15 Billion is to be spent by “Telcos” to build up the infrastructure and the entire system in the next 10 to 15 years. Currently the contractors are insufficient and this is an excellent opportunity for us to gain the market share and a defensible position in the industry.

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Past Three Years Sales

  2008 2009 2010   (RM)   (RM)   (RM)  Sales  3,500,000 3,675,000 3,858,750 Total Cost 3,025,595 3,274,150 3,545,090 Net Profit (Before Tax) 474,404.8 400,850.3 313,659.6

Next Three Years Sales Forecast

  2011 2012 2013   (RM)   (RM)   (RM)  Sales  12,100,000 13,310,000 14,640,000 Total Cost 10,065,198 11,054,898 12,143,286 Net Profit (Before Tax) 2,034,801.6 2,255,101.8 2,496,714.1

Sales & Profit Comparison Between the Past & Forecast – With HSBB to Homes

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Past Performance•Existing sales increasing•But the profit started to decline

New Market •Sales increasing•Profit also increasing

Comparison Graphs Between the Past & Forecast – With HSBB to Homes

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Micro Trenching Technique Conventional

Open Cut Method

The Technology Comparison

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Conventional Open Cut Method - Finish

Micro Trenching - Finish

Finish - Comparison

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Typical Micro Trenching Works

Install Micro Duct Inside the Micro Trench

Micro Trenching Typical Works

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Investment Required

Aprox. RM 2.5 Million cash to cover first three month overhead/project cost RM 2 Mil. from company and aprox. RM 500k from invoice financing or revolving working capitol.

Proposed new machineries/vehicles RM 478K for 2011 and subsequent RM 119K each year for 2012 and 2013.

Additional manpower cost of RM 1,536 Mil. each years for 2011-13.

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Recommendation

To participate in “High Speed Broad Band to Homes”.

Invest in the new technology (micro trenching)

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Increase sales by 245% in the first year and subsequently 10% each years.

Increase profit by ~612% on the first year and about 11% on subsequent years.

Due to the shortfall on the capable contractor we anticipate this business is going to be our “Stars” referring to “BCG Growth – Share Matrix”.

Have very big growth potential if we are willing to invest more.

Reasons;

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