Download - Full Report BUSINESS PROPOSAL
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NATIO
FACULTY OF E
DEPARTMENT O
BU
S-TE
GROUP 20 MEMBERS:
HASLIZAH ABDUL GHA
MOHD NAZMI B. MAT S
GOH YING NGIAPTAN FU YANG
DUE DATE: 1stDECEMBER 2
NAL UNIVERSITY OF MALAYSIA
GINEERING AND BUILT ENVIRONME
CHEMICAL AND PROCESS ENGINEE
SINESS PROPOSAL
HNOLOGY SDN. BHD.
AR A119024
LLEH @ AB. HAMID A118298
A117429A116808
10
i
T
ING
JKAS
JKMB
JKEESJKKP
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LIST OF CONTENT
LIST OF CONTENT i
1.0 EXECUTIVE SUMMARY 1
2.0 VISION, MISSION AND MANAGEMENT TEAM 2
2.1 Vision 2
2.2 Mission 2
2.3 Management Team 2
2.4 Ownership 3
3.0 MARKET SUMMARY 4
3.1 Current State Of The Industry 4
3.1.1 Economic and Market Condition 4
3.1.2 Evolution of New Technology 4
3.1.3 Increase Demand for Printing and Extra Services 4
3.1.4 Cost Effectiveness 5
3.2 MARKET SEGMENT 5
3.2.1 Geographic segmentation 5
3.2.2 Demographic segmentation 5
3.2.3 Psychographic segmentation 6
3.2.4 Behavioral segmentation 6
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4.0 PROBLEM AND OPPORTUNITIES 6
4.1 Customer 6
4.1.1 Customer Buyers Needs And Preferences 6
4.1.2 Customers Buying Motives 7
4.2 SWOT Analysis 8
5.0 BUSINESS CONCEPT 10
5.1 General Description Of The Business 10
5.2 Industry Background 11
5.3 Company Logo 12
6.0 COMPETITION 12
6.1 Industry Competition 12
6.2 Competition And Competitive Advantages 13
6.2.1 Major Competitors 13
6.2.2 Competitive Advantages 15
7.0 GOALS AND OBJECTIVES 15
7.1 Goals 15
7.2 Objectives 16
8.0 FINANCIAL PLAN 17
8.1 Financial Model 17
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8.2 Estimates Material Cost And Pricing 17
8.3 Financial Forecasting 19
8.4 Break-Even Analysis 21
9.0 RESOURCE REQUIREMENTS 22
9.1 Technology Requirements 22
9.2 Personnel Requirements 23
9.3 Location 23
9.4 Promotion 24
9.5 Services 25
9.5.1 Inventory Control 25
9.5.2 Customer Service 25
10.0 RISKS 26
10.1 Addresing Risks 26
10.1.1 Employee Risks 27
10.1.2 Technology Risks 27
10.1.3 Market Risks 27
10.1.4 Financial Risks 27
10.1.5
Time Risk 28
10.2 Rewards 28
10.2.1 Start Up Requirement 28
10.2.2 Funding Investment 29
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10.2.3 Current Liability 29
11.0 CONCLUSION 30
11.1 KEY ISSUE 30
11.1.1 NEAR TERM 30
11.1.2 LONG TERM 31
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1.0. EXECUTIVE SUMMARY
S-Technology Sdn Bhd is a private company which will be built up at Shah Alam
Malaysia. Hereby, we would like to introduce a smart printer which has the characteristic of slim,
smart and speed by using high technology.
Motives for entering the business enterprise are fame and recognition, personal financial
gain, great challenge, to fulfill needs that have not yet been met and to create value in the lives of
customers. These motives encourage producing a printer which fulfills demand and convenience
of customers. Moreover, we are willing to take risk and challenges in our business.
The goal is to build upon the trust of the customer and contribute to the continuous
growth in market share and some of the objectives are to contribute the effort with hard work and
diligent, invest our best effort in everything undertaken, keeping in-line with the latest
technology, provide our clients with the best services and supports,
Target market will be salesman, universitys students, businessman, realtor, insurance
agent and for those working out of office. The startup capital is about RM1,600,000. These
amount is split among the team members and financing with local bank.
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2.0 VISION, MISSION AND MANAGEMENT TEAM
2.1 VISION
S-Technology Sdn Bhd have dedicate ourselves to become the global leader in providing
a leading-edge, integrated intelligent solution and leading company in smart printing and
technology environment.
2.2 MISSION
S-Technology Sdn. Bhd is highly committed in providing a Slim, Smart and Technology
products. Furthermore, we also providing users friendly products and services to our partner by
encouraging them towards a change in lifestyle and eventually, inspiring them to embrace a
digital environment.
2.3 MANAGEMENT TEAM
S-Technology Sdn Bhd was established by four members who have establish with various
skills and work experience runs from manufacturing, international marketing, and finance to
small business entrepreneurship. All of the team members, who bring in complementary skills
and a wealth of experience in the management of new and growing business, and they also share
their part as members of Board of Directors. S-echnologys management teams consist of:
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1. TAN FU YANG
Chief Executive Officer
2.
MOHD NAZMI MAT S
Chief Marketing Officer
3. HASLIZAH ABDUL G
Chief Financial Officer
4. GOH YING NGIAP
Chief Operation Officer
2.4 OWNERSHIP
S-Technology Sdn. Bhd
team members and finan
percentage of the owners
Fi
LLEH
AFAR
was registered with paid-up capital of RM1,60
cing with Public Bank. Tan Fu Yang was ho
ip. Paid-up capital will be as shown in the figu
ure 2.1: Percentage of Ownership
Tan Fu
Yang
35%
MohdNazmi
25%
Haslizah
20%
Goh Ying
Ngiap
20%
3
0,000 among the
lding the highest
e below:
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3.0 MARKET SUMMARY
3.1 CURRENT STATE OF THE INDUSTRY
3.1.1 Economic and Market Condition
Economic recovery is on the way. Current figures and forecasts show Indonesia, Thailand,
and Malaysia will enjoy relatively large growth in technology industries. Our company seeks to
co-operate with these nearest country because it will open up our market in others country. Also,
we plan to seek low cost supplier and low cost resources in these country to better compete with
others competitors.
3.1.2 Evolution of New Technology
The evolution of these new trends and technologies in the printing industry will bring
fresh challenges and opportunity. We must ensure that unrewarding old processes and workflow
habits will have to be shelved and more productive ventures into rewarding and new technologies
to remain competitive and successful in the next millennium.
3.1.3 Increase Demand for Printing and Extra Services
Demand of services other than selling products had been increasing recently. We will
provide services such as warrantee, services after sales and enquiry information need to provide
for customer to meet customer satisfaction.
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3.1.4 Cost Effectiveness
Companies across the industry are experiencing increased competition in the market and
tremendous pressure to decrease prices. So, we always put emphasis on low cost production by
doing the right things at the first time. This will reduce rework job and wastage when producing
our products.
3.2 MARKET SEGMENT
3.2.1 Geographic segmentation
Our country had multi-national, global businesses and brands. However, geographic
segmentation such as region, climate, and population density does not influence our market
segment.
3.2.2 Demographic segmentation
We had dividing the market into groups based on variables such as age, gender family
size, income, occupation, education, religion, race and nationality.
3.2.3 Psychographic segmentation
We also divided the market into groups according to customers lifestyles. Though here,
we can indicate what people do, their activities, their opinion, and their buying behavior.
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3.2.4 Behavioral segmentation
This element is very important because there are closely related to the product itself and
based on actual customer behavior toward products. We had indicated some information about
benefits sought, usage rate, brand loyalty, user status, readiness to buy, and occasions through
user preferences and opinion.
4.0 PROBLEM AND OPPORTUNITIES
4.1 CUSTOMER
4.1.1 Customer Buyers Needs and Preferences
Costumer needs motivate people to act. Understanding how buyers satisfy their needs
provides guidelines for our marketing action. We understanding that consumer acquire
satisfaction through product function, price, quality, and durable.
Daily activities of people almost influence them to have an own printer. For example, a
salesmans need to print out the product specifications, cost, advantages which need to show to
customer to achieve their sales. All of this kind of activities requires a printer able to bring to
anywhere and use in anytime.
Brand Loyalty is the consumer's conscious or unconscious decision, expressed through
intention or behavior, to repurchase a brand continually. In order to create brand loyalty, we
need to break consumer habits, help them acquire new habits, and reinforce those habits by
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reminding consumers of th
purchasing those products in t
4.1.2 Customers Buying Moti
Fig
From the figure above, i
selecting our Smart printer. Pr
extremely small size is a basic el
Ready and easy to use ar
Just connect it to our computer/d
the printing status. Besides that,
English, Chinese, Japanese and
literacy, they are ability to use
without USB cable. User only
detect automatically when receiv
prospect consumer.
value of their purchase and encourage t
e future.
ves
re 4.1: Customers Buying Motives
shows that that the portable is a major facto
spect consumer indicates that easy bring to
ment when they choose the new technology pr
the second factor encourage consumer buying
evice via USB, additionally there is an OLED
touch screen enable user choose a variety of
even Bahasa Melayu. Although a person i
it. Bluetooth function enable user to print out
needs to install software in their laptop, after
e command from laptop. It surely bring a big c
7
em to continue
when consumer
everywhere and
nter.
our Smart printer.
creen to displays
language such as
s not technology
their documents
that printer will
onvenient for our
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4.2 SWOT ANALYSIS
Strengths- S
1. S-Technology printer is
slim, smart, and high speed
by using new technology.
2. Strategically of
manufacturing location.
3.
Low cost of production.
4. Enable charges premium of
price because we gain first
mover advantage.
5.
Strong distribution channel.
6. Promotion and advertising.
Weaknesses- W
1.Lack of experience in
managing company.
2.
Reputation of company is
new in the market.
3.
Financial weak because we
are emerge company.
4.Depend on single product
line.
Opportunities- O
1. Economics recovery.
2.
Growing population and
higher education people.
3. Increase switching costs for
competitors.
4. Changing customer needs
and preferences for printer .
5. Technology has changed
SO STRATEGIES
1.Economic recovery enhances
the buying power of
perspective customer, so
charges the premium price
for our printer able to
increase our cash flow
moving. (S4, O1)
2.S-printer meets the demand
WO STRATEGIES
1.Seek for advisory and
consultant opinion in manage
business. (W1, O2)
2.Worldwide sales to increase
our financial performance.
(W3, O7)
3.
Expand product line in
future.
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expeditiously over the
years.
6.
Changing lifestyle,
activities and attitudes of
consumer.
7.
Worldwide sales.
due to the growing
population changing lifestyle
of people. (S1, O2, O4, O6)
3.Strategically locations of
manufacturing, promotion
and advertising able to
worldwide sales. (S2, S7,O7)
4.
Increased switching cost for
competitors enable us to gain
large market with low
production cost. (S3, O3)
Threats- T
1. Customer loyalty toward
certain brand.
2.
Increasing prices of raw
material in current market.
3.
Life cycle of technology
products become shorter.
4. Imitate product by
competitors, legal
challenges.
ST STRATEGIES
1.Changing customer loyalty
and habit to our Smart printer
through promotion and
advertising. (S1, T1, S7)
2.
Charges premium price for
our printer because life cycle
technology become shorter in
today (S4, T3).
WT STRATEGIES
1.Seeking low cost raw
materials in other country.
(T2)
2.Increase reputation of
company by hiring an
advisory who have power
influence in the
market.(W2)
3.Seeking others resources for
financial help. (W3)
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5.0 BUSINESS CONCEPT
5.1 GENERAL DESCRIPTION OF THE BUSINESS
S-Technology Sdn Bhd is a new company and involve in manufacturing which produces a
multi functions printer to public. S-Technology Sdn Bhd estimated running business in year 2011.
The company name has been registered under Company Act 1965. S-Technology Sdn Bhd was
originally registered with paid-up capital of RM1,600,000 split among the team members and
financing with Public Bank. S-Technology Sdn Bhd is located at Shah Alam Malaysia.
Organization bound by several rules and regulations. A company has an existence
independent of its members therefore it can sue and be sued by others. Companies and their
activities are directly regulated by the Corporations Law. The Corporations Law controls most
aspects of a company's formation, business and winding up and must be carefully considered.
Moreover, the death, retirement or other withdrawal of a member will not terminate the company
and may not even require any reorganization of the company's operations. The company also is a
separate legal entity; thus, it pays tax. Companies are taxed at a flat rate, which is significantly
lower than the upper ranges of the marginal tax rates applying to individuals. If the company
makes significant profits, there can be a large tax saving.
S-Technology Sdn Bhd management team has been established by four members, who
have over 6 years experience and distinct skills in operation, international marketing, finance and
management. Moreover, we have excellent interpersonal skills and are a great collaborator with
an open design process. With these distinct skills and uniqueness printer, we hope to become a
leading company in the market.
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S-Technology Sdn Bhd has established a quality management system that placed great
emphasis in achieving consistent high quality in its products. Consistent high quality in products
and good customer service are vital factors for S-Technology Sdn Bhd to compete successfully in
the international market.
Nowadays, printer is playing very important role in our life especially for workman.
Therefore, customers will buy the printer without any hesitation. However, S-printer in the
market and it is different with other competitors printer, it has many others functions such as
bluetooth, touch screen, setting for multiple languages and adjustable to standard size.
5.2 INDUSTRY BACKGROUND
In Malaysia, there are a lot of companies dealing with printers product and Canon is one
of our major competitors. Although there are many competitors in printer industries in Malaysia
but there are few competitors may produce portable printer. Other countries like China and Japan
produce cheaper products than us and we found that it is necessary to modify the printer to
achieve a better performance on the customers works. Since printer had changed to emergency
usage, customers demand for printer increases.
It has become challenges for us to introduce a new model of printer into the future market.
However, through our R&D strategies, we may produce higher quality and technologies product
than other producer. In addition, through our business strategy, we capable compete with them.
Therefore, our business has great potential to be growth in Malaysia. Our business concept is
come from our survey. We believe our company will be successful become leading company and
greatest printers producer not only in Malaysia.
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5.3 COMPANY LOGO
We designed a distinctive logo of printer. It formed from three basic color which are red,
yellow and blue. The S represent company name and mean slim, smart and speed. It symbolic
this company will produce a slim, smart printer with high speed when used.
6.0 COMPETITION
6.1 INDUSTRY COMPETITION
In Malaysia, there are a lot of companies dealing with printers product and Canon is one
of our major competitors. Although there are many competitors in printer industries in Malaysia
but there are few competitors may produce portable printer. Other countries like China and Japan
produce cheaper products than us and we found that it is necessary to modify the printer to
achieve a better performance on the customers works. Since printer had changed to emergency
usage, customers demand for printer increases. It has become challenges for us to introduce a
new model of printer into the future market. However, through our R&D strategies, we may
produce higher quality and technologies product than other producer. In addition, through our
business strategy, we capable compete with them. Therefore, our business has great potential to
be growth in Malaysia. Our business concept is come from our survey. We believe our company
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will be successful become leading company and greatest printers producer not only in Malaysia
but in Asian too.
6.2 COMPETITION AND COMPETITIVE ADVANTAGES
6.2.1 Major Competitors
Figure 6.1: Revenue (RM) Figure 6.2: Sales (RM)
a. Canon
Ever since Canon Marketing (M) Sdn Bhd was established in 1987, it has become a major
corporate player in Malaysia. Canon in Malaysia has now more than 20 years of success, 20
years of non-stop product launches, 20 years of commitment from employees, 20 years of
support from customers, 20 years of passion and drive from business partners.
Revenue
Canon
HP
Lexmark
Epson
Sales
Canon
HP
Lexmark
Epson
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b. HP
HP is a technology company that operates in more than 170 countries around the world.
They explore how technology and services can help people and companies address their problems
and challenges, and realize their possibilities, aspirations and dreams. They offer consumers a
wide range of products and services from digital photography to digital entertainment and from
computing to home printing.
c. Lexmark
Since inception in 1991 as a spin-off of IBM, Lexmark has become a leading developer,
manufacturer and supplier of printing and imaging solutions for offices and homes. Lexmark is
the only player in the industry which is exclusively focused on distributed output. Lexmark's
products are sold in more than 150 countries in North and South America, Europe, the Middle
East, Africa, Asia, the Pacific Rim and the Caribbean.
d. Epson
Epson Malaysia Sdn Bhd has the exclusive rights to the marketing and distribution of the
complete range of EPSON products in Malaysia and Brunei. It is a brand thats internationally
recognized as a market leader. Epson Malaysia Sdn Bhd, with strong support from their
principals in Japan, is committed to the high standards of excellence.
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6.2.2 Competitive Advantages
a) First mover advantage
Technology has changed expeditiously over the years, and it advances with a geometric
progression rather than an arithmetical one. Every technology product we use daily is getting
smaller and smarter each day. There are quite a few portable printers out there but none is like
our Smart printer as small and tiny. This portable printer was not designed to handle heavy loads,
but it can be very useful for printing on-the-go. Smart printer is a portable printer concept enables
user to print their documents anywhere and anytime. It is still not commercially available.
b) Strategic dealer network
Our distribution channel takes into account a strong dealer network. Throughout Malaysia,
S-Technology Sdn Bhd resellers provide a professional pre sale and after sales service.
7.0 GOALS AND OBJECTIVES
7.1 GOALS
S-Technology Sdn Bhd goals for the first five years of operation: As the popularity of printer
continuous to grow exponential rate, easy and affordable for every customer is quickly becoming
a necessity of life. S-Technology Sdn Bhd is highly committed in providing a slim, smart and
high speed printer by using new technology. S-Technology Sdn Bhd is to dedicate ourselves to
become the global leader in providing a leading-edge, integrated intelligent solution and leading
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company in smart printing and technology environment. Furthermore, we also providing users
friendly products and services to our partner by encouraging them towards a change in lifestyle
and eventually, inspiring them to embrace a digital environment.
7.2 OBJECTIVES
S-Technology Sdn Bhd is a contribution to the hard work and diligence by us, based on the
following objectives:
Provide our clients with the best services and supports, where we take integration as our
core business strategy to integrate multiple components to one simple and user-friendly
printer.
Slim, smart, high speed and portable printer at a reasonable price.
To fulfill our clients needs and thus providing us a path to create better products and
solutions tailored to our clients lifestyle.
Through innovations within our employees, we find the perfect solutions suited for each
of our clients and keeping in-line with the latest technology.
We invest our best effort in everything we undertake and take pride in honesty and
integrity in everything we do.
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8.0 FINANCIAL PLAN
8.1 FINANCIAL MODEL
The initial business model of S-Technology Sdn. Bhd show as below:
Table 8.1 Initial Model of S-Technology Sdn. Bhd
(RM)
Assets 400,000
Cash In Bank 700,000
Loan from Bank 300,000
TOTAL 1,400,000
8.2 ESTIMATES MATERIAL COST AND PRICING
The following table is shows the cost estimates for a unit of printer.
Table 8.2 Cost Estimates for a Unit
MATERIAL USING COST PER UNIT
PVC 1.00
Arc chip inject printer 2.50
COMS Battery 4.00
Battery Clip 0.50
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USB Printer Cable 1.2M, Floppy Cable 3.00
USB Bluetooth Adapter 20.00
Canon BCI-3E Ink Cartridge 33.00
Aluminum 0.60
Touch screen 1.20
Direct Labor 20.00
Cost Overhead:
Electricity
Others
2.50
7.20
Total 95.50
According to the table above, the sales price estimates is RM 165 per unit. The quantities of
printer which can be produced in a year are estimate in 7000 units. The cost spent is showed as
Table 8.3 below:
Table 8.3 Cost Estimates for 7000 Units
MATERIAL USING COST PER UNIT RM
7 000 UNITS
PVC 1.00 7,000
Arc chip inject printer 2.50 17,500
COMS Battery 4.00 28,000
Battery Clip 0.50 3,500
USB Printer Cable 1.2M, Floppy Cable 3.00 21,000
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USB Bluetooth Adapter 20.00 140,000
Canon BCI-3E Ink Cartridge 33.00 231,000
Aluminum 0.60 4,200
Touch screen 1.20 8,400
Direct Labor 20.00 140,000
Cost Overhead:
Electricity
Others
2.50
7.20
17,500
50,400
Total 95.50 668,500
8.3 FINANCIAL FORECASTING
To estimate the cost earn and expense for a year, S-Technology Sdn. Bhd. estimates around
20,000 units of printers have been produced. Table 8.3 below is shows the cost analysis from
year 2010 until 2013.
The sales will increase from year 2010 2012 due to the new technology and new
products been established compare to other competitors. At year 2013, the sales will decrease
because the competitors start to produce the same product by using the same technology. The
salaries expenses are increased every year due to the increasing salaries to workers and hire more
workers for research and development new products. High utilities expenses at initial but will
decrease when the business and production become stable. Maintenance fee is depending on the
production and machines work life.
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Distribution expenses will increase from year 2010 2012 but will decrease when year
2013 because the market sales are decrease due to the decrease in demand of S-Technology Sdn.
Bhd. printer. Promotion expenses will increase at the initial but decrease when year 2012 due to
the stable in market demand. Transportation fees will increase every year due to the increasing of
petrol price every year and transport the products to more places.
The net profit can be shown at Table 8.4.
Table 8.4 Profit Analysis from Year 2010 2013
2010
(RM)
2011
(RM)
2012
(RM)
2013
(RM)
Estimates Net Sales
- Cost Material
3,100,000
668,500
3,500,000
675,000
3,950,000
680,000
3,760,000
690,000
2,431,500 2,825,000 3,270,000 3,070,000
Operating Expenses
Salaries 300,000 350,000 390,000 420,000
Utilities 100,000 110,000 105,000 105,000
Maintenance 88,000 95,000 105,000 100,000
Insurance 35,000 35,000 35,000 35,000
Interest 330,000 330,000 330,000 330,000
Distribution 100,000 140,000 190,000 180,000
Rent 130,000 132,000 132,000 132,000
Promotion 300,000 400,000 350,000 350,000
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Transportation 45,000 51,000 55,000 60,000
Others 80,000 85,000 83,000 88,000
Total Expenses 1,508,000 1,413,000 1,775,000 1,800,000
Profit 923,500 1,412,000 1,495,000 1,270,000
- Income Tax (15%) 148,525 211,800 224,250 190,500
Net Profit 774,975 1,200,200 1,270,750 1,079,500
8.4 BREAK-EVEN ANALYSIS
Total Fixed Cost = Maintenance + Rent + Utilities + Insurance + Interest
= RM 88,000 + RM 130,000 + RM 100,000 + RM 35,000
+ RM 330,000
= RM 683,000
Total Variables Cost = Salaries + Distribution + Promotion + Transportation
+ Others expenses + Cost Material
= RM 300,000 + RM 100,000 + RM 300,000 + RM 45,000
+ RM 80,000 + RM 668,500
= RM 1,493,500
Cost variable per unit = RM 1,493,500 / 20,000 unit
= RM 74.68
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Break-even point in unit = Total Fixed Cost / (Revenue cost per unit - Cost variable per unit)
= RM 683,000 / ( RM 165 - RM 74.68)
= 7562 unit
Break-even point in RM = 7562 unit X RM 165
= RM 1,247,730
9.0 RESOURCE REQUIREMENTS
9.1 TECHNOLOGY REQUIREMENTS
From the basic design of printer in S-Technology Sdn Bhd, technology nowadays was needed
have Bluetooth technology, OLED or touch screen technology, rechargeable battery and etc. First
of all, the these technology were bought license from other company like SONY and HP.
Research and development in S-Technology Sdn Bhd will install these technology in the printer.
The chips and materials needed for these technologies will be bought from suppliers.
To increase the productivity of printer, S-Technology Sdn Bhd will buy the printers from
contractors company by supply the printer design for the company. Receiving is the ultimate
responsibility of the operation manager, the automatic connection with supplier makes the task of
operation manager become much easier in purchasing materials. The material for cover of printer,
PVC will buy from suppliers outside. Malaysia has a high supply for plastic PVC and it easy
been found anywhere.
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The other technology needed is the rechargeable battery for printer which can be used
when no electricity. This battery will be produced with other contractor companies which
produce the input and output of electricity from our design.
9.2 PERSONNEL REQUIREMENTS
Electrical engineers are needed to design the installation of printer by combine the few of
technologies. They also need to research the new technology and modify the printer to improve
the quality and efficient of the printer. Mechanical engineers also needed to handle the machine
in production line. Besides that, it needs some creative designer to design the modern printer
which can attract the customers and help to increase the sales. Company will connect with
institute and university to hire the employees which fulfill the requirements.
The job like clerk, accountant, purchaser, sales and marketing, cleaner also needed in a
company to handle the sales and purchase the raw materials. Besides that, it need contractor
transporter to deliver the products. Good transportation
is important to consider the costs of both
transporting supplies to the manufacturing location and shipping the finished product to
customers. Skill technician also needed to show and explain with customer. They also needed
service the customer if had problem when used by customers.
9.3 LOCATION
To choose a good location for company, some conditions have been alert like customer
accessibility. Customer accessibility is generally an important consideration in selecting location.
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It also help to increase sales where the places of accessed by customers. The targets and prices of
customers also important in decide a printer which can be used in office or home.
Second issue is business environment which includes the competition, legal requirements,
and tax structure. These elements will influence our business success in future. Try to establish
company in enterprise zones in order to bring jobs to economically deprived areas. These zones
lure business by offering regulatory and tax relief.
9.4 PROMOTION
Advertising is one of the promotion skills. To advertise the product effectively, television
become the main media and newspaper advertisement is the secondary media. Popular TV media
have been choosing such as TV3, NTV7, 8TV and Astro. The newspapers choose included The
Star, Sinchew Daily, Nan Yang Siang Pau, Berita Harian and Utusan Malaysia.
Brochures or booklets as another promotion skill will contain attractive and necessary
information about the products. These can encourage potential buyers to find more details about
the product. Brochures or booklets are issued to citizens around the shopping centre and shops
which sold the products.
Internet is another latest technology which efficient and cheap. SMART Technology will
prepare a website about the company and products which customers easy to access it. Besides
that, company will advertise about the latest product at few social website such as msn, facebook
and friendster or others famous forums like Cari to attract prospect customer.
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Exhibition at some shopping center and Pikom PC fair is a good promotion skill. The
customers can understand more about the products from the promoter and can make a smart
choice due to the high competitive there.
9.5 SERVICES
9.5.1 Inventory Control
All sales are monitored on an ongoing basis with the data information linkage from retailer.
Operations manager have responsible for handle inventory control such as barcodes, and
potentially RFID tags, to provide automatic identification of inventory objects. This system
automates a sales order fulfillment process. Real time inventory control systems use wireless,
mobile terminals to record inventory transactions at the moment they occur. A wireless LAN
transmits the transaction information to a central database. These can help for the security system
too.
9.5.2 Customer Service
Customer service is designed to monitor customer feedback. E-mail feedback that requires certain
questions to be answered as a prerequisite to submitting the e-mail transmission. Company is
willing to give feedback for the customer if they face any problems in using our printer as fast as
we could.
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Technician has been provided if the customer faced the problems. A few technicians are
needed which can handle the customer around the Malaysia. The technicians will visit the
customer directly to help to solve the problems.
The guarantee of product provided is along one year and customers have the rights to
return and refund the products for acceptable reason within this period. All customer call will be
directed to our administrative assistant/receptionist.
10.0 RISKS
10.1 ADDRESING RISKS
Our success depends in part on our ability to develop and introduce new products as the first
mover in order to keep pace with competing technologies. However, our manufacturing may
bring in strong competitor such as, Canon, Hp, and Lexmark. In spite of that, we also associated
challenges in the attributes of cost, capacity and reliability.
To achieve consistent success with our customers, we have to balance several key
attributes such as time-to-market, time-to-volume, quality, cost, service, price and a broad
product portfolio. Our operating results will be adversely affected if we fail to:
1) Maintain overall quality of products in new and established programs
2) Produce sufficient quantities of products at the capacities our customers demand while
managing the integration of new and established technologies
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3) Develop and qualify new products that have changes in overall specifications or features
that our customers may require for our business needs
4) Obtain commitments from our customers to qualify new products, redesigns of current
products, or new components in our existing products
5) Obtain customer qualification of these products on a timely basis by meeting all of our
customers needs for performance, quality and features
10.1.1 Employee Risks
Will we able to ramp up quickly enough and attract the key personnel required to execute
the planned marketing and sales programs?
Are we having enough skilled personal?
10.1.2 Technology Risks
What happens if our core technology does not remain unique in the marketplace?
Are our technologies easy to imitate?
What we could do for the rapidly changing conditions in the technology industry?
10.1.3 Market Risks
Will customer like our product?
If the market is growing, what we should do for continue to grow in the future?
What happen if our product does not accept by the market?
10.1.4 Financial Risks
Will we be able to get the required capital?
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Will we meet your cash flow obligations?
Are we able to handle if interest rates increase?
Will the fluctuations in currency exchange rates happen in the future?
10.1.5 Time risk
Will we produce smart printer in short time?
How many years that we can start earning money from printer market?
Thus, we need to consider all the above matter for the success of our enterprise.
10.2 REWARDS
10.2.1 Start Up Requirement
a) Set-up expanses
Legal RM700
Consultant RM2000
Insurance RM1000
Rent RM1500
Computer system RM1000
Communication line RM800
Fixture RM700
TOTAL SET-UP EXPANSES RM7700
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b) Set up asset needed
Cash balance on starting day RM5000
Start up inventory RM2000
TOTAL SET-UP ASSET RM7000
10.2.2 Funding Investment
Cale bruckner RM1000
John underwood RM1000
Wilson RM2000
TOTAL INVESTMENT RM4000
10.2.3 Current liability
Account payable RM 0
Current borrowing RM4570
Other current liability RM1000
TOTAL CURRENT LIABILITY RM5570
LOSS AT SET UP RM7700
TOTAL CAPITAL RM3700
TOTAL CAPITAL AND LIABILITY RM9270
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11.0 CONCLUSION
As a startup company, we are facing many challenge such as finding capitals, suppliers,
and location. Anyways, we believe our channels through the retailers, distributors and sellers can
brings together the successful trends of social networking. With the rich experience of our
advisor and consultant, we believe them can bring us towards successfully. With the great
promotion in our uniqueness printer through financially support by our company, we believe that
we can success in launching our printer and gain profit. It is very important for us because it can
build our company image and affect our next product to be successful in the market. With the
effort and persistency our team member, it enables us to achieve our mission. In future, we hope
to become a leading company in the market and bring our company towards global market.
11.1 KEY ISSUE
11.1.1 Near term
As a starting company, we are going to begin our marketing strategy in our local market by
concentrating on increasing our smaller business accounts. To increase our cash flow, we not
offer promotion price at our started sales. Besides that, we hope to charge premium price from
our products because we have first mover advantages. Other reason is we are in faster changing
technology industry, our product maybe imitate by future competitors. Therefore, before our
competitors offer more comprehensive product than us, we hope to charges premium at first.
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11.1.2 Long term
We only make discount for our product in second and fourth quadrant because between these
periods is launching PIKOM PC Fair around Malaysia, so we hope can gain biggest market share
from that. By the way, we estimated that our sales will be drop because our competitors will use
some strategy to get back their market share.
Consequences of decision postponement
More expenses such as employee salary, bill electricity.
Lower efficiency in production line.
Delay other project
Over budget
Miss the golden opportunity in investment
Make investor or share holder less confident to our company