ggh(hard cover)

GREEN GARDEN HOUSE ENTERPRISE

CHAPTER 1

INTRODUCTION

Since our Prime Minister has launched the RMK-9, we decided to enter the agricultural

sector to support the RMK-9. After some discussions, we decide to open a partnership business.

GREEN GARDEN HOUSE ENTERPRISE (GGH) is the name we choose to be used for our

partnership business GREEN GARDEN HOUSE ENTERPRISE is registered under the

partnership agreement. GREEN GARDEN HOUSE ENTERPRISE are been shared by 6 person.

The person who is responsible to lead our company is Mohd Faiz Omaq Bin Mahmud, the

General Manager will be supported by a management team which consists of Administration

Manager, Operation Manager, Marketing Manager and Financial Manager. Each manager has

different skills and knowledge which are essential for the business. They will involve directly in

the overall operation of the business because only a strong team with different capabilities can

realize this business plan.

The idea to establish this business is from our survey which is indicated there is to make

sure we produces the fresh vegetables, supply and sell it to the local citizen . We provide the very

fresh vegetables from our farm. We will start to operate our business on 6th January 2009.

The location of our office is situated at No 22, Jalan Pelangi Kuning, Taman Milee,

30000, Perak Darul Ridzuan. We choose Perak for this business because Perak has started their

agriculture development. We selected this location by looking at our target market,

comprehensive infrastructure such as communication network, competition, transportation and

development area.

Lastly, the business that we engage is not just to get profit but also want to increase our

reputation as bumiputera that has courage to participate in type of this business. So, we establish

this business is to show that we as bumiputera also can operate the business which is usually

conquered by non-bumiputera.

1


1.1 PURPOSE OF BUSINESS PLAN

Business plan is a written document explaining the overall explanation regarding a

business or project to be carried out. Business plan is prepared by Green Garden House as

guideline to manage our business and as a guideline for managing the proposed venture. It

covered business expectations, prediction and method and procedures to implement business

strategies.

The business plan is already known as business proposal which is used as an item to

propose a business. So, it has a several purpose preparing a business plan. The following factors

are the purpose for preparing business plan.

Main purposes in preparing this business plan are listed below:

To convince relevant financial institution to apply for loans or financing facilities.

The guideline in managing the business especially as preparation in order to enter

international global business.

To accesses the status of financial ability and stability of our business.

Take different actions to overcome any obstacle that get in the way reaching the business

goals.

To allocate business resources effectively and always find ways to do things faster with

fewer resources or at lower cost.

To view and evaluate the purposed business venture in an objective, critical and practical

manner.

To allow us as an entrepreneur in order to view and evaluate the purposed business

venture in viability and growth potential.

As the guideline for daily management of the business

Able to determine the profit and loss

The business plan generally is suitable and must be proper created. This is because to

prevent any problem happened that will affect our business operation. So, the business plan is

a vital for entrepreneurs like us to prepare it from become worst in the future.

2


1.2 COMPANY BACKGROUND

Name of the company : Green Garden House Enterprise

Business Address : Green Garden House Enterprise

No. 22, Jalan Pelangi Kuning,

Taman Milee,

30000, Perak Darul Ridzuan.

Telephone No. (Office) : +605-4901111

Fax No. : +605-4902222

Form of Business : Partnership business

Main Activities : Farming, selling and supplying vegetables

Date of Commencement : 06th January 2009

Date of Business Registration : 27th January 2009

Registration Number : 379951149

Name of Bank : Agro Bank Malaysia

Bank Account Number : 11369943302

Equity Contribution : RM 100,000.00

3


1.3 COMPANY LOGO

LOGO DESCRIPTION

This logo is the logo that will represent and be the trademark of our company. It shown that we

are hardworking and liable to our company progress. We hope we will develop the farm and gain

more crops. It is also shows that we want to fulfill consumer demand for high standard quality

services. We always find various steps and faster way to solve our problem.

4


1.4 MOTTO

All partners are agreeing GREEN GARDEN HOUSE is going to be our motto. Motto is sort of

spirit to our company and increase the spirit of the workers in doing their work. The color of

green is symbolized for the fresh vegetables that are provided to the costumers. The reason why

we use GREEN FROM GARDEN is as a guaranteed to the customer and the will satisfy with

our products and services.

5


1.5 PARTNERS BACKGROUND

1.5.1 GENERAL MANAGER

Name : Mohd Faiz Omaq Bin Mahmud

I/C No : 700426-01-5413

Permanent address : No.14, Taman Desa Kenari, 30500 Sungai Keling, Perak

Correspondence address : [email protected]

Telephone No : +6013-5119744

Date of Birth : 26th April 1976

Age : 37 years old

Marital status : Married

Academic qualification : Bachelor of Business Management (Ireland) 2004

Course attend : Kursus Usahawan Muda (MEDEC) Ogos 2007

‘Entrepreneurship Skills’ organized by MARA

Skills : Good in business management and able to consult with

clients.

Experience : Three years working with non-government agricultural

as Administration Officer

Three years with Financial Consultant.

Present occupation : Company Manager.

Previous business experience : Has experience in sell vegetables at night market

6


1.5.2 ADMINISTRATION MANAGER

Name of the Partner : Ahmad Al-Zubir Bin Zulkifly

Identity Card Number : 740203-56-5665

Permanent Address : 40, Lorong 12, Taman Bakar Arang, 32000

Kubang Lembu,Perak.

Correspondence Address : [email protected]

Telephone Number : +6013-5229744

Date of Birth : 3 February 1974

Age : 32 years old

Marital Status : Married

Academic Qualification : BSC/BA in Business Studies (UUM) 2005

Diploma in Administration (UiTM) 2002

Course attended : Forum Kerjaya Pelajar Selepas Era Pengajian

(UM) April 2004

: Semainar Usahawan Muda 2005 (PWTC)

Skills : Microsoft Word. Microsoft Power Point.

: Management of Business Administration

Experience of Working : Five years working with government sector

Present Occupation : Administration Manager

Previous Business Experience : Direct Selling Sullivan

7


1.5.3 MARKETING MANAGER

Name : Ahmad Fuad Bin Adzmi

I/C No. : 771026-10-5321

Permanent address : 56, Taman Idaman, Jalan Baru 35000 Permatang

Permaidani, Perak Darul Ridzuan


Telephone No : +6013-5339744

Date of Birth : 26th October 1977

Age : 29 years old

Marital status : Bachelor

Academic qualification : BA/BSC in Marketing (UK) 2007

Diploma in Business Marketing UiTM 2002

Course attend : Kursus Usahawan Malaysia Mampan (KUMM) Mac 2003

Skills : Good in making promotion through experience

Communication.

Experience : promoter for Tunas Manja Enterprise (2005-2007)

Working as tourist guide at Malaysian Tourism

Center (MTC)

Present occupation : Administrative Manager

Previous business experience : Has experience in sell drink and food at night market

8


1.5.4 OPERATION MANAGER

Name : Mohamad Zaid B Ma’riffin

Identity Card Number : 790808-56-5985

Permanent Address : Lot 223, Taman Indah Damai, 30050, Kota Sarang

Semut, Perak Darul Ridzuan

E-mail address : [email protected]

Telephone Number : +6013-5449744

Date of Birth : 08th Ogos 1979

Age : 29 years old

Marital Status : Married

Academic Qualification : BA/BSC in Business Admintration 2007

(ENTREPRENEUR DEVELOPMENT)

Diploma in Business Study UiTM (2005)

Courses Attended : Kursus Keusahawan anjuran, MARA

Disember 2005

Skill : Fluent in Malay, Mandarin and English

Experience : Five years working with E-SPACE as assistant operation

Present Occupation : Operation Manager

Business Experience : None

9


1.5.5 FINANCIAL MANAGER

Name : Mohamad Afiq Bin Azman

I/C No. : 800528-49-5110

Permanent address : 2222 Kg. Perpaduan Sentosa, 30000 Desa Permai,

Perak Darul Ridzuan


Telephone No : +6013-5229744

Date of Birth : 28th May 1980

Age : 28 years old

Marital status : Married

Academic qualification : BSC/BA in Accounting UUM 2004

Diploma in Accounting UiTM 2001

Courses Attended : Seminar Keusahawanan Belia Muda 2004

Skills : Computer Skill with excel and USB System

Experience : Cashier and Sales Assistance (Part time) 2000

Accountant at Maybank (two years)

Present Occupation : Financial Manager

Business Experience : None

10


1.6 PARTNERSHIP AGREEMENT

This partnership agreement has been prepared and signed by each partners witnessed by two

person on 6 January 2009. The objective of this agreement is to avoid any form of fraudulent and

deception that might arise during the operation of the company. It also to ensure the business is

run smoothly and successfully. The partners of the company are:

NAME IC NO

Mohd Faiz Omar Bin Mahmud 700426-01-5413

Ahmad Al-Zubir Bin Zulkifly 740203-56-5665

Ahmad Fuad Bin Adzmi 771026-10-5321

Mohamad Zaid B Ma’riffin 790808-56-5985

Mohamad Afiq Bin Azman 800528-49-5113

General Manager with sincerely gave land for gardening valued RM 80,000 to company and this

gift not include on capital contribution.

All partners agreed and promise to follow and obey all the terms and requirements a started in

the partnership contract of agreement such follows:

1. Name of the business:

GREEN GARDEN HOUSE (GGH) was established by six partners under Partnership

Act Registered 1961 (Amendment 1974).

2. The address of the company:

Green Garden House will take place at No 22, Jalan Pelangi, Taman Milee, 30000 Perak

Darul Ridzuan.

3. Date of Business Commencement:

11


The business has started on 6 January 2009 and it will dissolve when there are death of

the partners and unless there is an agreement otherwise.

4. Equity Contribution

Each partner will contribute money as a capital to our business as follow:

NAME CAPITAL CAPITAL CONTRIBUTION (RM)

PERCENTAGE (%)

Mohd Faiz Omar Bin Mahmud 40,000.00 40%

Ahmad Al-Zubir Bin Zulkifly 15,000.00 15%

Ahmad Fuad Bin Adzmi 15,000.00 15%

Mohamad Zaid B Ma’riffin 15,000.00 15%

Mohamad Afiq Bin Azman 15,000.00 15%

5. Loss and profit will be divided equally.

Profit and loss will be distribute to each partners based on capital contributed.

6. Salaries

It was agreed that each partner would receive their salaries based on their contribution in

capital and their position of employment.

7. Fiduciary Duty

Every partner must be honest and trust towards the other partners. This company has a

right to dismiss any partners that act beyond his capacity and use their partnership name

of purpose without other partner concern. Besides that, every partner must also have

responsibility to keep the good will of the company.

8. Dissolution of The Business

If any of the members death, retirement or handicap, our company will not winding up.

The other partners have the right to find substitute. Compensation will be given to the

partners

12


9. Every partner will understand and follows the entire partner’s agreement and its

requirement. Then signed the agreement that eyewitness by two people:

…………………………..

(MOHAMAD FAIZ OMAR BIN MAHMUD)

700426-01-5413

…………………………

(AHMAD AL-ZUBIR BIN ZULKIFLY)

800528-10-5111

………………………..

(ZAID BIN MA’RIFFIN)

740203-56-5665

………………………

(MOHAMAD AFIQ BIN AZMAN)

790808-56-5985

……………………….

(AHMAD FUAD BIN ADZMI)

771026-10-5321

13


Thus, for this agreement, I as an eyewitness of this agreement letter confirm all the

agreement fact truthfully.

Eyewitness 1 Eyewitness 2

…………………………. ……………………………

(HASLEE BIN SALJEE) (MOHMAD SYUKRI BIN HASHIM)

560321-01-5975 560106-56-5697

14


CHAPTER 2

ADMINISTRATION PLAN

2.1 VISION AND MISSION OF BUSINESS

VISION

To give the best service to our customers in increase the quality of the product and

services that we want to convince the customer on the capability of our business and

friendly with customers.

To become as a strong competitor in north of the Malaysia after three year and to

become as a strong competitor in all country in Malaysia after five year operation.

Attempt to become as a role model of successful business from Bumiputera

entrepreneur in the future.

MISSION

To ensure the customer get the best services according to the customers demand.

Maximize the profit with excellent quality of product and services.

Increase the number of demand and supply in the market.

Provide a good environment and comfortable condition in our shop.

To improve in promotion of our product and services.

Provide complete and appropriate equipment and facilities to customer

To establish a good relationship with the customers.

15


2.2 OFFICE LAYOUT

16


2.3 INTRODUCTION TO THE ORGANIZATION

17


Organization is very important key in business operation. Planning of the whole

infrastructure and management system the lead organization are applicable to achieve more

systematic of work style in the business. The major functions in business management include

arrangement, instruction and logical control

The management system of Green Garden House based on ability of administration in

managing and arranging the strategy planning before this business is function. It is important to

make sure our business strategic by achieving the goal and objective into competitive business.

We also absorb the management skill to ensure the business growing successful and excellent.

2.3.1 ORGANIZATION OBJECTIVES

18


To achieve the goal and objective of GREEN GARDEN HOUSE ENTERPRISE (GGH)

organization, we have generated the systematic strategy of managing the business. The following

are the key objectives of administration:

To carry the business as pious duties to get blessing of Allah besides seek income to

support our life.

Join the market and gain much profit by selling the product.

To increase the effectiveness of the management strategy in the company.

To ensure the relationship between the management and workers in good health.

To practice all experience and skill is running daily organization planning.

Planting the green and fresh vegetables for the environment.

Survey the local and worldwide market.

To make a job opportunities for the local area citizens.

To find the best solution of increasing the business revenue, minimum cost. To get the

cooperation and information from government organization and local residents.

Our missions to propose this type of business are as below:

Developing the land that government has decides as a rezerb land for the bumiputera.

Protecting the environment and the eco-system demolish.

Find the huge target market.

Supplying the fresh vegetables to the citizen in the area.

Build the good competitor environment and Progress the local economy.

2.3.2 ORGANIZATION CHART

19


2.4 MANPOWER PLANNING

20

WORKERS SECURITY GUARD

GENERAL MANAGER

ADMINISTRITATIONMANAGER

MARKETING MANAGER

OPERATION MANAGER

FINANCIAL MANAGER

SITESUPERVISOR

SALES ASSISTANTCLERK

SALES WORKER


List of job designation and no. of workers

Position No. of Workers

General Manager 1

Administration Manager 1

Marketing Manager 1

Operation Manager 1

Financial Manager 1

Clerk 1

Sales Assistant 1

Sales Worker 2

Site Supervisor 1

Workers 4

Security Guard 1

TOTAL 15

2.5 SCHEDULE OF TASK AND RESPONSIBILITIES

POSITION JOB DESCRIPTION JOB SPECIFICATION

GENERAL Responsible in decision making Diploma in Public

21


MANAGER

process.

To make sure that the

organization achieve the high

level performance.

To ensure the business activities

work smoothly and each

department can be handle the

business.

Planning for the short term and

long term planning.

Responsible all over the business

checking and monitoring the

record about operation marketing

etc.

Administration/Degree

holder in Business

Administration.

Minimum 4 years

working experience 1

management position

Good computer skills

and knowledge

especially in managing

the business in sport

area

ADMINISTRATION

MANAGER

Keep all important documents

to ensure to ensure the

documents to ensure the

document are updated from

Diploma in public

administration/degree

in corporate

22


time to time

In charge to the documents

needed to be sign up by general

manager

Help the general manager to

handle the business

Handle all aspect of human

resource including welfare of

the workers and admin function

and also control administrative

expenses.

administration

Minimum 2 years

working experience

management position

Good command in

English and Malay


and knowledge.

MARKETING

MANAGER

Responsible to analyze and

make a market strategy

Receive order from clients

Responsible to promote and

attract customers by making a

good strategy to compete with

other competitor

Manage and develop market

opportunity for organization

Diploma in Public


in Marketing.

Minimum three years

working experience in

operational

management

Good command in

English and Malay


and knowledge.

OPERATIONAL

MANAGER

Responsible of the output that’s

follow company’s orders

Responsible in assigning job and

activities of employees.

Diploma in Public


in Quantity Surveyor

Minimum three years


23


To deal with clients in the most

satisfactory manner in term of

accepting complaints and

suggestions

To ensure the business operation

works effectively and avoid

wasteful of resources.

operational

management

Good command in

English and Malay


and knowledge.

FINANCIAL

MANAGER

Prepare business financial

statement from time to time

Prepare monthly accounts of the

business

Controlling the revenue and the

expenses of the company

To control of services of financial

resources

Diploma in

Accounting or Degree

in Finance

Minimum two years


taxation and auditing

Good command in

English and Malay

Good computer skill

and knowledge.

CLERK

Provide enough office

requirement

Work as general worker in office

At least have SPM

qualification


and knowledge.

2.6 REMUNERATION SCHEME AND WORKERS INCENTIVE

As we know, administration department is important in any organization. All workers are

control by administration department. In our company, all workers are our assets. Administration

24


department is responsible to caring the workers remuneration and incentive. The remuneration

scheme and incentive that we provide in our company are as follow:

SALARY INCREMENT

Workers will receive their fixed monthly salary base on their work experience and

responsibilities. Company will increase workers salary based on the employee performance. To

increase the company member’s salary will be decided base on the agreements of all partners.

However, General Manager decides increase in salary of other employee and it depends on

company progress. Otherwise, employee’s commitment and loyalty toward the company will be

taken to consideration.

ANNUAL BONUS

Annual bonus will be given to the workers based on the total profit received by the company the

end of financial period after all the expenses had been paid. The amount was depending on the

performance of the workers.

EMPLOYEE`S PROVIDENT FUND (EPF)

According to EPF Ordinance 1955, a sum of money from employee’s salary need to be

contributed the EPF. The payment rate based on employee’s salary is 12%.

25


SOSCO

Under the Employee’s Social Security Act 1969 and the Employee’s Social Security (General

Regulation) 1971, an employee earning monthly wages of RM 2300 or less must compulsory

contributed to SOSCO.The employee share of 0.5% of wages should be paid for coverage.

Invalidity Pension Scheme while the employer pays 1.75% for employment Injury Scheme and

Invalidity Pension Scheme. SOSCO is a guarantee of the workers safety. All employees will be

covered under the SOSCO scheme. Current rate for employee contribution is 2.5%.

INSURANCE

The stuff that suffers accident during the work will receive insurance benefits, which will be

managed by the organization.

MEDICAL BENEFIT

The company will pay all of the expenses for medical treatment whether private or hospital.

LEAVE

Medical leave is allowed provided there is Medical Certificate (MC) from the clinic (the

company appointed), government clinic and hospital.

2.6.1 REMUNERATION TABLE FOR THE FIRST YEAR

Job /positionNo of

employeeBasic

salary/wages per

EPF:12%(RM)

Socso(RM)

TotalSalary/wages per month

26


month(RM) (RM)General Manager

1 1600.00 192.00 28.85 1,820.85

Administration Manager

1 1300.00 156.00 23.65 1479.65

Financial Manager

1 1300.00 156.00 23.65 1479.65

Operation Manager

1 1300.00 156.00 23.65 1479.65

Marketing Manager

1 1300.00 156.00 23.65 1479.65

Clerk 1 1000.00 120.00 18.35 1138.35

TOTAL 6 7800.00 936.00 141.80 8877.80

2.7 LIST OF OFFICE EQUIPMENT

2.7.1 OFFICE FURNITURES

27

No.TYPES OF

FURNITURESQuantity

(Unit)Price per unit (RM)

Total(RM)

1 Manager`s table 5 90.00 450.002 chair 6 50.00 300.003 Meeting set room 1 400.00 400.004 Cabinet files 2 80.00 160.005 Sofa set 1 300.00 300.006 Clerk table 1 80.00 80.00

TOTAL 16 1000.00 1690.00


2.7.2 OFFICE EQUIPMENT

2.7.3 OFFICE FITTING

28

No.TYPES OF

FURNITURESQuantity


Total(RM)

1 Computer 4 1500.00 6000.002 Printer 2 100.00 200.003 Fax machine 1 300.00 300.004 Scanner 1 150.00 150.005 Notice board 2 20.00 40.006 Telephone 2 50.00 100.007 Dustbin 8 2.00 16.008 Wall clock 2 5.00 10.00

TOTAL 22 2127.00 6816.00

No.TYPES OF

FURNITURESQuantity


Total(RM)

1 First aid kid 1 20.00 20.002 Fire extinguisher 2 250.00 500.003 Safety alarm 1 200.00 200.004 Air Conditioner 2 3000.00 3000.005 Lamp 10 30.00 300.00

TOTAL 16 3500.00 4020.00


2.7.4 TOTAL OF LIST EQUIPMENTS

2.8 ADMINISTRATIVE BUDGET

29

No. TYPE Total(RM)1 Office Furniture 1690.002 Office Equipment 6816.003 Office Fitting 4020.00

TOTAL 12,526.00


DESCRIPTION FIXED ASSETS

EXPENSES(RM)

MONTHLY EXPOENSES

(RM)

OTHER EXPENSES

(RM)

TOTAL(RM)

Furniture, Fitting Equipment

12,526.00 12,526.00

Salaries 7,800.00 7,800.00

EPF (12%) 936.00 936.00

SOCSO (2%) 141.80 141.80

Deposit Utilities Telephone, Water

And Electricity

1,100.00 1,100.00

Electricity And Water

400.00 400.00

Telephone 150.00 150.00

Rental Building 600.00 600.00

Deposit On Rental Building

1,200.00 1,200.00

Business Registration

65.00 65.00

Business License 100.00 100.00

Charge Bank/Duty Stem

50.00 50.00

Insurance 400.00 400.00

Stationery 350.00 350.00

TOTAL 12,526.00 10,027.80 10,065.00 25,818.80

CHAPTER 3

30


MARKETING PLAN

3.1 INTRODUCTION OF MARKETING PLAN

The marketing concept rests on the philosophy that all marketing activities must satisfy

customer needs and wants, and the same time achieve the targeted profits. The focus, which is

customer satisfaction first and then profit, is considered a long term due to doing business. A

satisfied customer will most likely come back for more and continue to contribute to the business

sales and profit. On the other hand, a dissatisfied customer is not likely to repeat purchases and

may influence others to avoid the particular product or services.

In order to fulfill customer needs and wants, the business needs to offer product or

services that are easily available to the targeted customer at the right place and time and at an

attractive price. This objective can only be achieved if the customer’s needs and wants are

carefully researched and identified before the final product and service is offered.

A lack of understanding of the marketing concept can result in a poorly developed

product that fails to meet the customer’s needs and wants. This can hamper marketing efforts and

affects sales performance, overall business expansion and progress

3.2 PRODUCT & SERVICE DESCRIPTION.

31


3.2.1 Product

We will develop the land; we planted several types vegetable in our farm. There are a lot

of type of vegetable such as chilies, tomatoes, brinjal, and etc. We are involve in agricultural

section where families with the fresh of the products. We are responsible to provide the fresh

vegetables so that satisfied our customers. The packing is very important key to distribute our

product. The simple and interesting packaging can make customers attract to buy the product. In

the packaging part, all the vegetables are packed with certain wrapping and display in the

freezer. In our shop, we display the vegetables in the freezer with plastic packaging. The

packaging is able to protect the product during the transportation, storage ang display until the

product ready to use. The vegetables must be fully protected to guarantee the freshness.

3.2.2 Pricing

For our company, we decide to use the competition base pricing. By using this method,

the business bases its price largely on the competitor’s prices.

3.3 ORGANIZATION CHART

32


3.4 MANPOWER REQUIREMENTS

33

MARKETING MANAGER

SALES ASSISTANT

SALES WORKER SALES WORKER


PositionNo. of

workerJob Status

Remuneration per month

(RM)

EPF (12%)(RM)

SOCSO (RM)

Total (RM)

Sales assistant

1 Permanent 500.00 60.00 9.65 569.65

Sales worker

2 Contract 450.00 - - 900.00

TOTAL 1469.65

3.5 SCHEDULE OF TASKS AND RESPONSIBILITIES


SALES

ASSISTANT

Responsible in managing the

shop

Help the marketing officer to

promote of our service to the

public.

Bring the new ideas to increase

the customers, to use the service

that provided.

No special qualification

(man/ woman)

SALES WORKER

Responsible in sales product

To promote the product and

services to the customers

No special qualification (man/

woman)

3.6 MARKETING ANALYSIS

34


In a business, marketing plan is importance to ensure whether the business can compete

and maintain in the business world that is getting more competitive nowadays. This analysis is to

determine the amount of customer, market size, opportunities, and our ability to compete and to

find the best method to increase the quality of the marketing effort. Therefore, the importance

aspect is to make sure the effectiveness of the business and how far the service can maximizes

the productivity.

GREEN GARDEN HOUSE ENTERPRISE is a business involves in providing service

towards an individual or an organization. So, in order for the business to keep competing and

providing the best service, there a few factor that have to be taken into consideration so the

business can give continuous satisfaction based on our service that are provided. Those factors

are:

Target Market

Market Size

Identifying Competitors

Marker Share

Sales Forecast

Marketing Strategies

35


3.7.1 TARGET MARKET

As we know, any business needs to focus marketing activities toward certain group of

client or customers are chosen based on our business ability to satisfy their need and want. These

groups of client or customers needs and want which can be satisfied by the business through the

supply of goods or services are known as the target market.

Market segmentation is the process dividing of market into a group known as segment of

customer with similar need or characteristic. They may need a different product or marketing.

Thus, within the same geographic area it is possible to have several market segments. Mistakes

in market segmenting may cause businesses to lose sales .Through segmentation; a business can

identify an overlooked market and develop a product to exploit that market. We consider to

Psychographic, Geographic and Demographic segmentation to segment the market.

3.7.2 MARKET SEGMENTATION

Psychographic

Members of market can be segmented according to such psychographic variable as a life

style, social class or personality characteristic and interest. We have chosen this factor to be

considered especially around Pantai Remis because it is important to determine our business is

able to enter new market able to emulate other competitors.

Personality Characteristic - We give our service to the community especially

around this area which is near from our location. .

Interest - As what know usually the villagers will chose vegetables as their main

meal such as “Ulam”. So, we prefer to chose villagers as our main customer by

selling and supply our product to them every day.

36


Geographic

We have identified the market segmentation in our business location before running

our business. Our companies are located at strategic location in term of geographic

segmentation.

i. Climate

The successfulness of vegetables cultivation depends on several

environmental factors such as temperature, humidity, light and air. The

location of our business is suitable with these conditions. It is built at place

surrounded with trees that can maintain the humidity and temperature at the

normal condition. Besides, this places also cleans from pollution which not

suitable for vegetables cultivation.

ii. State

We are focusing on three major sates which are near to our premise. The

states are Pulau Pinang and Selangor.

iii. District

Two main districts that we focus on are Pantai Remis where our premise is

located and Ipoh which is one the main district in Perak.

37


Demographic

Characteristic of the population that may be considered in developing a segment

strategic is recalling a demographic segmentation.

i. Individual

Our main target is families. They especially housewife will use vegetables as one

of ingredient in their cooking, we will promote them all of vegetables at my

shop. Besides, we target peoples who like to eat “ulam”. It is gives us advantage

to for our healthy.

ii. Market

Market is the strategic place to supply vegetables because it is the place where

every housewife will buy vegetables.

iii. Restaurant

Most restaurant always use vegetables in their cooking especially Chinese.

Therefore, we can gain profit by providing our vegetables to their restaurants.

iv. Hotel

Customers especially Chinese prefer vegetables in their cooking. They want

vegetables fresh, green from garden.

We have determined that Ipoh as our target market. Our office is at No. 22, Jalan Pelangi

Kuning, Taman Milee, 30000, Perak Darul Ridzuan As we known; Ipoh is a large district so

that we are divided into several areas:

Setiawan

Pantai Remis

Taiping

Lumut

Kuala Kangsar

38


3.8 MARKET SIZE

Market size refers to the potential purchase of the target market. It is normally stated in

terms of cases or Ringgit Malaysia. It can be calculated daily, weekly, monthly or yearly.

We focus the marketing effort to a potential group of customer for increase or profit and

at the same time we will know the success of marketing. The group of clients or customers

known as target is chosen based on our potential and confident to satisfy their needs and wants.

Total number of family in Pantai Remis

Total family = 32000 people

(1 Family have an average of 5 people)

=1/5 x 32000 people

=6400 family

Each family will spend RM 3 every 2 days

Market size/month

=RM 1.50 × 30 days× 1 family

=RM 45/month/family

= RM45 x 6400 family

=RM288,000

Market size/year

=RM288,000 x 12 month

=RM 3,456,000/year

39


3.9 MAIN COMPETITORS

In the business, competition is very important whether direct or indirect. Competition can

give terrible effect to new competition. From our survey done, we had identified 3 main

competitors that offer similar product and services. Those competitors are:

SYARIKAT ABU SAYUR – Lot 135, Jln Kg Baru, Pantai Remis, Perak

AH CHONG ENTERPRISE – Lot 264, Jln Semarak Kasih, Taiping, Perak

AHMAD 70 AND SONS – Lot 7789, Jln Bunga Raya, Tapah, Perak

LEE SHOP ENTERPRISE - A6308, Jalan Beserah, Lumut, Perak

Although the main competition has been established a few years ago, we still believe that

we can win our customer’s heart even though we are new. Therefore we should work hard to

produce a quality service, which can maximum satisfaction for the customer.

40


3.9.1 ANALYSIS OF BUSINESS STRENGTH AND WEAKNESSES

Competitor refer to related products or services of the same target, we should evaluate the

strength and weakness of the competitors in terms of experience, how long they have been in this

business, financial ability and production line.

COMPETITORS STRENGTH WEAKNESS

SYARIKAT ZAMAN SAYUR

Have regular customers.

Enter market around 4

years.

Have poor facilities.

Not good in quality and

service.

Location not strategic

AH CHONG ENTERPRISE

Workers are very loyal

and hardworking.

Have regular customers.

Entered market around

3 years.

Not good in quality.

Unattractive product and

service.

Price is expensive.

AHMAD 70 AND SONS

Price are not very

expensive

Strong strategic in

promotion and

financial.

Premise quite small.

Not good in quality.

LEE SHOP ENTERPRISE

Have an effective

management

Good on marketing

strategic

Shop near in main road

(no parking and no

space at shop)

Not all vegetable is fresh

41


GREEN GARDEN HOUSE ENTERPRISE has its own strength compete with other company

which offers similar services and product like us.

STRENGTH

CHARACTERISTIC STRENGTH

PRICE We offer reasonable price

LOCATION It is strategic place Enough with the facilities.

GOODS Sell quality item Standard prices according KPDN/HEP Malaysia

SERVICES

Give the services according to customer demand Have experience in selling and supplying

product Services is ready on time

PROMOTION

We promote our business by using business card, signboard, advertisement, banner, pamphlet, and newspapers.

WEAKNESSES

Not familiar in this area because we just opened our company.

New in market size and we may not get a lot of customers.

Have many competitors and some of them have been in business for many years. One of

them started their business 5 years ago.

42


3.9 MARKET SHARE

Market share refer to estimated potential sales of the business after taking into

consideration to the market size and competitor’s influence. It is often to represent in term of

percentage of potential market sized owned.

Market share before GREEN GARDEN HOUSE ENTERPRISE enters into the market:

NO COMPANYMARKET

SHARE (%)ESTIMATE

INCOME/YEAR (RM)

1. SYARIKAT ZAMAN SAYUR

35 1,209,600

2. AH CHONG ENTERPRISE 29 1,002,240

3. AHMAD 70 AND SONS 22 760,320

4. LEE SHOP ENTERPRISE 14 483,840

TOTAL 100 3,456,000

43


Market share after GREEN GARDEN HOUSE ENTERPRISE enters into the market:

NO COMPANYMARKET

SHARE (%)ESTIMATE

INCOME/YEAR (RM)

1. SYARIKAT ZAMAN SAYUR

32 1,105,920

2. AH CHONG ENTERPRISE 26 898,560

3. AHMAD 70 AND SONS 20 691,200

4. LEE SHOP ENTERPRISE 12 414,720

5. GREEN GARDEN HOUSE ENTERPRISE

10 345,600

TOTAL 100 3,456,000

44


3.10 SALES FORECAST

Sales forecast is expected purchases from identified target market. It is quoted in units or

in Ringgit Malaysia for e period of year or a month. It is important to GREEN GARDEN

HOUSE ENTERPRISE. As a new business to estimate it’s forecasting for three years

operation. Table below is our forecasting sale for the first year of our business. We forecast for

the second year is up to 3% from the first year. Then for the third year of the business, our target

is to achieve until 15% which up to 5% from the first year of forecast.

a) Sales forecast for year 2009 (JAN 09-DIS09)

MONTH SALES FORECAST (RM)

JANUARY -

FEBUARY -

MAC -

APRIL 27,648

MAY 38,016

JUNE 34,560

JULY 20,736

AUGUST 38,016

SEPTEMBER 44,928

OCTOBER 41,472

NOVEMBER 48,384

DECEMBER 51,840

TOTAL 345,600

45


b) Sales forecast for years 2010 until 2012

YEARSSALES

FORECAST(RM)Increased

(%)JUSTIFICATION

2010 319,488 5 Promotion more

successful

2011 345,047.10 10 To sell and supply to all

around of Perak

2012 396,804.90 15 To be one of the seller

and supplier for the

whole of Malaysia and

open new branches.

TOTAL 1,004,544

3.11 MARKETING STRATEGIES

46


Marketing strategy is the most important thing in order to make sure that a company will

be run effectively. Strategy is the pattern of an organizational goal and the major policies and

plan it has to achieve these goals, state in a way that define what business company is in or wants

to be in.

A well-conceived strategy includes 4 basic component, scope, resources, deployment,

environment, environmental analysis, establishing the mission and primary goals, developing

policies and developing functional strategies such as developing marketing strategies.

Hence to succeed in our business, we had come out with this marketing strategy. There

are four main marketing strategies (4’P) in this business plan as follows:

a. Product

b. Price

c. Place

d. Promotion

a. PRODUCT STRATEGIC

47


There are various factors that will attract customer to buy our vegetables, which are:

i. Quality

GREEN GARDEN HOUSE ENTERPRISE always checks and control the

quality of vegetables that produced by our company. It is because we want to make

sure that the vegetables are fresh, green from garden and have quality when we want

to distribute it.

We never supply the damages vegetables because it will effect to our business,

which is customer will never trust us forever.

If it is happen, we will give compensation to them. We will give new vegetables

as alternative or substitute.

ii. Packaging

Customers Type of packaging

End customers Plastic bag

Restaurant, markets and hotels Polystyrene box

b. PRICE

The price affordable for all people to buy it. We have to make sure our is reasonable and

compete with our competitor. In the meantime, we also can gain profit with that price. Before

we decide the price for our product, we had survey the price of the vegetables in the market

in Malaysia. With help from KPDN/HEP Malaysia, we came out with the price in the list.

48


The table below shows the price from farm :

Items Unit Price (RM)Seeds: 1. Chilies 100kg 3402. Brinjal 100kg 2703. Cucumber 100kg 654. Mustard 100kg 705. Lady Finger 100kg 2006. Tomatoes 100kg 450

The table below shows the price for shop :

Items Unit Price (RM)Seeds: 1. Chilies 1kg 7.5O2. Brinjal 1kg 5.5O3. Cucumber 1kg 3.OO4. Mustard 1kg 3.5O5. Lady Finger 1kg 5.5O6. Tomatoes 1kg 4.2O

The table below shows the price for wholesale :

Items Unit Price (RM)Seeds: 1. Chilies 100kg 7002. Brinjal 100kg 3403. Cucumber 100kg 1404. Mustard 100kg 1505. Lady Finger 100kg 4206. Tomatoes 100kg 240

c. DISTRIBUTION STRATEGY(PLACE)

49


Place are include company activities that make the product and services available to

target customers. Our location is strategic place because it is near the main road and people

around Perak know it is good place to survey and buy our product. So, customer does not

have any problem to find GREEN GARDEN HOUSE ENTERPRISE.

i. Direct to customer

The easiest ways to distribute our vegetables are by selling directly to customers

around our premise. Local citizen can buy our products freshly according list prices.

They can buy our product during operation hour (7.00 a.m-5.00p.m).

ii. Selling through retailers

The other way to distribute our product is selling our product to the retailers. We have

sale our vegetables to the retailer at the market. They can make order from us by

telephoned or directly come to our premise.

d. PROMOTION STRATEGY

Promotion strategies are important to increase sales especially for a new company

like us, we have to make sure that the promotion will attract customer to buy our vegetables.

The strategies that we use are:-

Business Card

Pamphlets

Banner

World Wide Web

Yellow pages

Broadcasting

Business Card

50


Business card is very important to make ones well known to our company. So, this

business card wills introduce to the customer that makes an appointment with us which will

make the business easier. The main purpose of producing this card is to expand our market to the

new customer where introduced by our regular customer through the card obtained and distribute

to the public.

Total of unit required

51

Green Garden HouseNo. 22, Jalan Pelangi Kuning, Taman Milee,30000, Perak Darul

Tel: +605-4901111 Fax No.: +605-902222

ggardenhouse@yahoo.

MOHD FAIZ OMAR BIN MAHMUD (GENERAL MANAGER)

Green Garden House


Tel: +605-4901111 Fax No.: +605-902222

ggardenhouse@yahoo.

AHMAD AL-ZUBIR BIN ZULKIFLY (ADMINSTRATION MANAGER)

Green Garden House


Tel: +605-4901111 Fax No.: +605-902222

ggardenhouse@yahoo.

AHMAD FUAD BIN ADZMI (MARKETING MANAGER)

Green Garden House


Tel: +605-4901111 Fax No.: +605-902222

ggardenhouse@yahoo.

MOHD ZAID BIN MA”RIFFIN (OPERATION MANAGER)

Green Garden House


Tel: +605-4901111 Fax No.: +605-902222

ggardenhouse@yahoo.

MOH|AMAD AFIQ BIN AZMAN (FINANCIAL MANAGER)

Green Garden House


1 Manager must have 100 business card5 x 100 = 500 unit

Total Price/Cost

Each Card cost RM0.30500 unit x RM0.30 = RM150

Pamphlet

52



2000 unit

Total Price/Cost

Each pamphlet cost RM0.202000 unit x RM0.20 = RM400

Signboard

53


Signboards are used to show the location of our premise and it will act as a

landmark for the new customer. By this way, hopefully the customer will be

benefiting the facilities of getting to our premise.

Size of Signboard

12’ x 5’


Only 1unit required to put at our premise.

Total Price/Cost

1 unit = RM1500

Banner

54


Banners are one of the ways to introduce our business to other people. It will be the

famous place that people can see easier.

Size of Banner

6’ x 3’ feet


15 unit

Total Price/Cost

Each banner cost RM10015x RM100 = RM1500

World Wide Web

55


We also have own website which customers can see information, news and others.

This website is creating because nowadays people like to explore in internet.

Furthermore, customers can leave any comment in the website to improve our

services. It’s cost RM100 for registering the domain name and hosting.

The website address is:

http://www.greengardenhouse.com.my/


56


1 unit

Total Price/Cost

Cost RM100 for Domain name1 x RM100 = RM100

Yellow pages

By this page, our business can be easily access by customer. The pages will be

include information such as the address and phone number of our company.

Size of Advertisement

10cm x 8cm


1 Advertise

Total Price/Cost

1 x RM75 = RM75

Broadcast

57


This is our future plan or strategy. We want to make advertising at radio about our

business. It is because we realize that radio is the best medium of promotion.

We broadcast our advertisement on business at Hot FM for 15 times and at Fungkur

FM (Internet Radio) for 30 times.

Total of On Air

15 times at Hot FM30 times at Fungkur FM

Total Price/Cost

On air at Hot FM cost 15 x RM15 = RM175On air Fungkur FM cost FREE

Total = RM175

On air promotion

“(Music Intro)….Hohohoho,,, Inginkan pelbagai jenis sayur-sayuran yang hijau lagi

segar? datanglah beramai-ramai ke Green Garden House! Kami menawarkan harga

yang istimewa kepada pemborong… Sebarang tempahan dan pertanyaan sila hubungi

05-490111, sila ulangi 05-490111… (Music End)”

Opening Ceremony

58


Our shop also will give discount and sale for opening ceremony. We give free gift if

anybody buys more vegetables. We also can distribute our business card, pamphlet,

catalog and others.

Food = RM800

Free Gift = RM200

VIP = RM200

Flyer = RM100

Promoter = RM100

Rental Service = RM600

No. ItemsPrice/Unit

(RM)No of

RequiredTotal price

(RM)1 Canopy 50 4 200.00

2 Chair and table 5 40 200.00

3 P.A system 200 1 200.00

TOTAL 600

Overall total = RM2000

Oral Communication

Oral communication is one of the strategies. All partners will introduce our business

to other people like our friends or families. In other ways, our friends or families will

introduce our business to their friends or families too. So that, it can be indirect

strategies which is a person will know the business from other people and it will not

include any expenses.

Total of cost for Advertising for Promotion strategies.

59


No. ItemsPrice/Unit

(RM)No of

RequiredTotal price

(RM)1 Business Card 0.30 500 150.00

2 Pamphlet 0.20 2000 400.00

3 Banner 100 15 1500.00

4 World Wide Web 100 1 100.00

5 Yellow pages 75 1 75.00

6 Broadcast 175 1 175.00

7 Signboard 1500 1 1500.00

8 Opening Ceremony 2000 1 2000.00

TOTAL 5900.00

3.12 MATERIALS REQUIREMENT

60


MACHINERY AND EQUIPMENT

At Shop:

No. ItemsPrice/Unit

(RM)No of

RequiredTotal price

(RM)Supplier

1 Cashier Drawer 250 1 250.00

Master Equipment

12, Taman Permai 35000. Ipoh Perak

2 Freezer 850 2 1700.00

Asiahmud Electric

222, Taman Kemboja 35000. Ipoh Perak

3 Racks 350 3 1050.00

Maliaw Craft Ent.

45, Taman Seni 35000. Ipoh Perak

4Electronic scale

(small)150 2 300.00

Master Equipment


5 Analog Scale 55 3 165.00

Master Equipment


TOTAL 3465.00

3.12 MARKETING BUDGET

61


Particulars

Fixed assets

Expenses(RM)

MonthlyExpenses

(RM)

Other expenses

(RM)Total

Fixed Assets Lorry 25,000 25,000Signboard 1,500 1,500Machinery and Equipment 3465 3465Working Capital Lorry maintenance 500 500Diesel 300 300Grand Opening 2000.00 2000.00Business Card 150.00 150.00Advertisement 2,250.00 2,250.00Salary 1,400.00 1,400.00EPF (12%) 60.00 60.00SOCSO (2%) 9.65 9.65Pre-Operations & Other ExpenditureOther Expenditure -Deposit (rent, utilities, etc.) - -Business Registration & Licenses - -Insurance & Road Tax for Motor Vehicle

1,500 1,500

Other Pre-Operations Expenditure 1000.00 1000.00Total 29,965 2,269.65 5,900 39,134.65

CHAPTER 4

62


OPERATION PLAN

4.1 LOCATION STRATEGIES

The location that farming process is located at

No 22, Jalan Pelangi, Taman Milee,

30000 Perak Darul Ridzuan

The land is 100 hectare and near the river and have fertile of soil for gardening.

To start our business, we need the land to plants the vegetables and make a place store the

equipment, fertilizer and chemical liquid. From that, we decide to build the medium garage as a

storage place. Our suggestion for the small garage is a below:-

i. Type of building : Medium garage

ii. Structure : Concrete wall with asbestos as a rooftop

iii. Condition : New building construct by local citizen

iv. Size of building : 8” x 8” x 12”

v. Cost of building : Contribution by all the partner with total of

±RM 2000.00.

While planting, we need the water to watering the vegetables. To reduce the labor cost, we

decided to use the water pump. We put the water pump near the river at our site. So that, to avoid

63


from stolen, we want to build the small water pump house. The description of the water pump

house as below:-

i. Type of building : Small room

ii. Structure : Concrete wall with asbestos as a rooftop

iii. Condition : New building construct by local citizen

iv. Size of building : 2” x 2” x 4”

v. Cost of building : Contribution by all the partner with total of

±RM200.00

Because of our plantation site beside the jungle, we must make the fence to prevent from the

attacking of the wild animal such as wild boars, dogs and etc. The determination of the fence is

as below:-

i. Type of building : Three layer of bubs wire

ii. Structure : Bubs wire and mangrove stick

iii. Condition : New construct by local citizen

iv. Size of fence : Parameter of the land x 1.5 m

v. Cost of fence : Contribution by all the partner with total of

± RM 2200.00.

4.1.1 LOCATION PLAN

64


4.2 ORGANIZATION CHART

65

OPERATION MANAGER


4.2.1 MANPOWER REQUIREMENT

AT SITE:

Position No. Job StatusRemuneration

per month (RM)

EPF (12%)(RM)

SOCSO (2%) (RM)

Total (RM)

Site Supervisor

1 Permanent 700.00 84.00 13.15 797.15

Technician 1 Permenent 600.00 72.00 11.35 683.35Driver 1 Permenent 550.00 66.00 9.65 625.65

Workers 4 Permanent 500.00x4 60.00x4 9.65x4 2278.6x4Security 1 Contract 500.00 - 500.00

TOTAL 6 4350.00 462.00 72.75 4884.75

4.2.2 SCHEDULE OF TASKS AND RESPONSIBILITIES

66

TECHNICIAN DRIVERWORKERS SECURITY GUARD

SITESUPERVISOR



SITE

SUPERVISOR

Responsible all over the checking

and monitoring at the site.

Ensure the quality of product that

has produce material.

Minimum three years


operational management

TECHNICIAN Responsible in maintenance, repair

the operation machine.

Diploma in electrical/

mechanical engineering

DRIVER

To deliver the ordered

purchased items to the customers

and send to shop.

Have lorry license

WORKERS Responsible in managing the farm. No special qualification

(man/women)

SECURITY

GUARD Responsible in farm safety Have experience in security

4.3 OPERATION PROCESS

67


We have two major operation processes, which produce and sell the vegetables to the customers.

The operational process is important to us because to get our company in a good competition

environments.

1. Farming

There were many bushes and unwanted tree in land. So, we had decided to hire the citizen in

the area of Pantai Remis to get out the unwanted plants. It is because we need to minimize our

cost in the forecast of the first year. The bushes and tiny tree must be rejecting from the land to

allow the plough process to take over. The bushes and tiny tree will be eliminating by burning it.

When we get the land, it will in a danger conditions. It is because the land will be exposed to

the wild animals in that area. So we need to fences the land to make a sign of the area for our

land. The area that we need to make a fence is about 1hectare including our store, warehouse and

water pump house.

But, for the plough process we need to rent the plough machine to operate the process. It

can’t be made by human energy because it will take much time and large in costs. Before we

plant the vegetables, we need to bound the land first. For the process, we use the machine to

make it.

For the farm, we had decided to divide it into six (6) sections and each section has three 3

bounds. For the first month, we plant all the six type of vegetable at first bound for every section.

This will continue for the second month at the second bound. For the third month until for a one

year it is the same method. It is because we must obtain our productions in a year. The process

will take about two (2) until three (3) months to collect the revenue. It is because the vegetables

must take the range of time to mature and be sell.

2. Selling vegetables to the customers and supply it to order wholesalers.

68


The final process that we done for the business, we need to satisfy the customer with our

products and the price that we offer. So, we need to give a good product and service to achieve

the aim of our motto GREEN FROM GARDEN.

4.4 PROCESS FLOWCHART

69


A) FARMING ACTIVITIES

B) SALES VEGETABLES ACTIVITIES

70

Make a fence

Plough process

Bound the land

Plants the seeds

Wait the vegetable half mature

Plants the half mature vegetable

Fertilize and poison

Check for the quality

Collect the revenue

Send to shop and store

Cleaning up the land


4.4. CAPACITY PLANNING

71

NOO

Customer enter the premise

Sales assistant take over

Give attention to customers

Server the customers

Give customer make a choice

YES

Deliberate the vegetables

Wrap up the vegetables

Take the cash

Greeting the customer


PROCESS PLANNING

Operation plan is a part of operation management that should be taken seriously when

starting a business. In order to set up our business, we must work efficiently and effectively. It is

because of the market challenging among other competitors.

Our goals are given a good explanation of local vegetables; it is high quality and the

advantages to our customers. We are trying to be best businessmen that involve in agricultural

industry in all over Pantai Remis and especially in Malaysia.

We aspect a good respond from customers when firstly enter into market although we are

new premise compared to other competitors that already existed in the market at our location. It

is because we produce and sell the vegetables compare to the old company in that area. We

believe that we can complete and increase our sales by give a good products and services to our

customer.

4.4.1 PRODUCTIVITY INDEX

72


Green Garden House has average of RM140, 400 per month, while the operational cost per

month is RM49, 855. The productivity index for our company can be calculated as:

Productivity Index (PI) = Total sales

¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯

Total operational cost/month

= RM 28800.00

¯¯¯¯¯¯¯¯¯¯¯

RM 20714.167

= 1.4

The PI calculated for our factory is 1.4 where the PI value is greater than 1.0. This indicates

factory has an efficient business operation. Therefore, it will continue to growth and gain profit.

4.4.2 OPERATING HOURS

73


DAY OPEN REST CLOSE

MONDAY 7.00am 1.00p.m – 2.00p.m 5.00p.m

TUESDAY 7.00am 1.00p.m – 2.00p.m 5.00p.m

WEDNESDAY 7.00am 1.00p.m – 2.00p.m 5.00p.m

THURSDAY 7.00am 1.00p.m – 2.00p.m 5.00p.m

FRIDAY Closed Closed Closed

SATURDAY 7.00am 1.00p.m – 2.00p.m 5.00p.m

SUNDAY 7.00am 1.00p.m – 2.00p.m 5.00p.m

This company opens from 7.00a.m until 5.00p.m every day except for Friday. On Friday

the company will be closed. However, we will be closed for one hour from 1.00p.m to 2.00p.m

for lunch break. Our business also will be close festival seasons such as Hari Raya Aidilfitri,

Chinese New Year’s and on any festive celebrations.

Our operating hours per day are 10 hours and all staff must follow this operating schedule

to make sure that the company will operate smoothly.

4.5. MATERIAL REQUIREMENT PLANNING

74


4.5.1 MACHINERY AND EQUIPMENT

AT SITE:

No. ItemsPrice/Unit

(RM)No of

RequiredTotal price

(RM)Supplier

1

Pipe line

Small

Medium

20

18

560m

170m

2350.00

3060.00

Ah Seng Hardware


2 Water Pump 2500 1 2500.00

Iskandar Equipment

35, Taman Jaya 32000. Ipoh Perak

3

Farming Equipments

Hat

Racks

Gloves

Hoe

Pongkers

5

4

28/bundle

12

7/dozen

6

5

2/bundle

10

10/dozen

30.00

20.00

56.00

120.00

70.00

Abu Disposing Sdn Bhd


4 Vegetables basket 3.5 100 350.00

Kamal Craft Ent.


5 Scale (Large) 70 1 70.00

Master Equipment


TOTAL 8626.00

AT WAREHOUSE:

75


No. ItemsPrice/Unit

(RM)No of

RequiredTotal price

(RM)Supplier

1 Cashier Drawer 250 1 250.00

Master Equipment


2 Freezer 850 2 1700.00

Heng Electric

222, Taman Kemboja 35000. Ipoh Perak

3 Racks 350 3 1050.00

Kamal Craft Ent.


4Electronic scale

(small)150 2 300.00

Master Equipment


5 Analog Scale 55 3 165.00

Master Equipment


TOTAL 3465.00

4.5.2 PRODUCTION MATERIAL

76


For the material requirement, we had list down all the material that we must use for the site.

No ItemQuantity

Required (kg)Safety

Stock (Kg)Price/Unit

(RM)

Total Price (RM)

Supplier

1

Seeds:i. Chilies

ii. Brinjaliii. Cucumberiv. Mustardv. Lady Finger

vi. tomatoes

10535510

52---2

15/kg10/kg7/kg5/kg6/kg12/kg

225.0070.0021.0025.0030.00144.00

Ministry of Agricultural-Pok Yed Seeds Sdn Bhd

2Fertilizer:

i. NPK 777 500(10 bags) 200 (4 bags) 92.50/bag 1295.00Ministry of Agricultural Perak

3Pesticides:

i. Dupontii. Malation

10 gallons5 gallons

2 gallons3 gallons

190150

2280.001200.00

AAZZ Chemical Sdn Bhd

TOTAL 5290.00

For the shop, the material that we use as follow:

No ItemQuantity Required

Safety Stock

Price/UnitTotal Price (RM)

Supplier

1 Wrapping plastic 1 roll 1 roll 30.00 60.00 NeoPlastics Sdn Bhd

2 Plastic bags 8 kg 2kg 2.50 25.00 Neo Plastics Sdn Bhd

3 Polystyrene plate 700 unit 300 unit 0.06 60.00 World of Polystrine Sdn Bhd

4 Price tags 1 dozen 1 dozen 6.00 12.00 Bedul Printing Sdn Bhd

5 Price tags machine

2 unit 18.00 36.00 Cekik Equipment

6 Stationary 30.00 Abdul Stationary

7 Small basket 5 unit 6.00 30.00 Fu Feng Li Haw Craft

8 Cleaning equipment

1 set 50.00 50.00 Maliaw Disposing Sdn Bhd

9 White board 1 unit 150.00 150.00 Abdul Stationary

TOTAL 453.004.6 OPERATION LAYOUT

77


We had design our site (land) layout as followed:

Descriptions:

78

Public parking

Store

Water pump

Rehab Land (extra)

River

Entrance

Mustard Chilies Ladies finger

Cucumber Tomatoe Brinjal

Warehouse

Lorry parking


Our farm is about 1 hectare. General Manager with sincerely gave land for gardening.

We had divided into four (6) sections. For the first month, we plant all the six type of

vegetable at first bound for every section. This will continue for the second month at the

second bound. For the third month until for a one year it is the same method.

We use the continuous flow method to plants our vegetables.

We had store to store equipment and the chemicals. It’s about 8’’ × 8’’ × 12’’.

We had the warehouse to store our harvest.

We also place a small water pump in our area and near the river of Semantan. It’s about

2’’× 2’’ × 4’’.

The extra rehab land, we use to plants the seed’s until it become half mature and can be

plants at bounds that serves.

4.7 OPERATION BUDGET

4.7.1 OPERATION OVERHEAD

79


The extra cost that we use for the operation:

DESCRIPTION

FIXED ASSETS

EXPENSES(RM)

MONTHLY EXPENSES

(RM)

OTHER EXPENSES

(RM)

TOTAL(RM)

Telephone- 150.00 - 150.00

Water - 50.00 - 50.00Electricity

- 170.00 - 170.00

Diesel- 1000.00 - 1380.00

Land duty- 800.00 800.00

Deposit Utilities Telephone,

Water, Electricity and

diesel

2740.00

TOTAL 1370.00 3540.00 4910.00

4.7.2 TRANSPORTATIONS

DESCRIPTION

FIXED ASSETS

EXPENSES(RM)

MONTHLY EXPENSES

(RM)

OTHER EXPENSES

(RM)

Lorry - 470.00 -Deposit - - 200.00Diesel - 1000.00 -

Road tax and insurance

- - 1500.00

Maintenance - 250.00 -TOTAL - RM 1720.00 RM 1700.00 RM 3420.00

4.8 OVERALL OPERATION BUDGET

80


DESCRIPTION

FIXED ASSETS

EXPENSES(RM)

MONTHLY EXPOENSES

(RM)

OTHER EXPENSES

(RM)

TOTAL(RM)

Machine & equipment 12091.00 12091.00Raw material 5743.00 5743.00Salary 4350.00 4350.00EPF 12% 462.00 462.00SOCSO 2% 72.75 72.75

Maintenance 500.00 500.00Renovation 4400.00 4400.00Overhead cost 1370.00 3540.00 4910.00Transportation cost 1720.00 1700.00 3420.00Other expenditure 1000 1000TOTAL 12091.00 14217.75 10,640.00 36948.75

CHAPTER 5

81


FINANCIAL PLAN

5.1 INTRODUCTION

The financial plan is an important plan that provides a complete picture of how much and

when funds are coming into company, where funds are going, how much cash are available and

the projected financial position of the company. It provides the short-term basis for budgeting

control and helps prevent one of the most common problems for new venture-lack of case. This

will determine the viability of the viability of the proposed business.

The financial plan also explains how the entrepreneur/company does plan to meet all

financial obligations and investment. In general, the financial plan will need at least three years

of projected financial data where the first year will reflect to monthly data. In this proposal, the

items that include plan:

1. Project implementation

2. Source of funds

3. Fixed asset depreciation schedule

4. Loan amortization schedule

5. Hire purchase repayment schedule

6. Pro-forma statement

7. Manufacturing accounts

8. Profit and loss account

9. Balance sheet accounts

5.2 OBJECTIVE FINANCIAL PLAN

82


Objective of this business financial plan are:

- To minimize the amount of case in hand that our company must hold for use in

conducting normal business activities.

- To analyze whether cash that has been use in running the business operation is effective

or not.

- To evaluated our business operation and the effect to financial position of our business.

- To arrange the strategies in order to increase our income and minimize our expenses.

5.3 PROJECT IMPLEMENTATION COST AND SOURCE FINANCING

83


5.4 TABLE OF DEPRECIATION

84

Fixed Asset furniture&fitting

Cost (RM) 12,526

Method Straight Line

Economic Life (yrs) 5

Annual Accumulated Year Depreciation Depreciation Book Value

- - 12,526

1 2,505 2,505 10,021

2 2,505 5,010 7,516

3 2,505 7,516 5,010

4 2,505 10,021 2,505

5 2,505 12,526 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Green Garden House Ent.

PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost Sources of Finance

Requirements Cost Loan Hire-Purchase Own Contribution

Fixed Assets Cash Existing F. Assets

Land & Building 80,000 80,000

furniture&fitting 12,526 510 12,016

lorry 25,000 16,000 4,000 5,000

signboard 1,500 1,500

machinery and equipment 3,465 2,965 500

machine&equipment 12,091 12,091

renovation 4,400 2,400 2,000

Working Capital 3 months

Administrative 30,083 12,418 17,665

Marketing 6,809 1,349 5,460

Operations 36,658 0 36,658

Pre-Operations & Other Expenditure 16,405 9,295 7,110

Contingencies 10% 22,894 22,894

TOTAL 251,831 67,831 4,000 100,000 80,000


85

Fixed Asset signboard

Cost (RM) 1,500



Annual Accumulated

Year Depreciation Depreciation Book Value

- - 1,500

1 300 300 1,200

2 300 600 900

3 300 900 600

4 300 1,200 300

5 300 1,500 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Fixed Asset renovation

Cost (RM) 4,400



Annual Accumulated


- - 4,400

1 880 880 3,520

2 880 1,760 2,640

3 880 2,640 1,760

4 880 3,520 880

5 880 4,400 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -


86

Fixed Asset machine&equipment

Cost (RM) 12,091



Annual Accumulated


- - 12,091

1 2,418 2,418 9,673

2 2,418 4,836 7,255

3 2,418 7,255 4,836

4 2,418 9,673 2,418

5 2,418 12,091 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Fixed Asset machinery and equipment

Cost (RM) 3,465



Annual Accumulated


- - 3,465

1 693 693 2,772

2 693 1,386 2,079

3 693 2,079 1,386

4 693 2,772 693

5 693 3,465 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -


CHAPTER 6

5.5 LOAN REPAYMENT SCHEDULE

87

Fixed Asset lorry

Cost (RM) 25,000



Annual Accumulated


- - 25,000

1 5,000 5,000 20,000

2 5,000 10,000 15,000

3 5,000 15,000 10,000

4 5,000 20,000 5,000

5 5,000 25,000 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

LOAN REPAYMENT SCHEDULEAmount 67,831 Interest Rate 3%

Duration (yrs) 5 Method Baki Tahunan

Year Principal Interest Total Payment Principal Balance

- - 67,831

1 13,566 2,035 15,601 54,265

2 13,566 1,628 15,194 40,699

3 13,566 1,221 14,787 27,133

4 13,566 814 14,380 13,566

5 13,566 407 13,973 -

6 0 0 - -

7 0 0 - -

8 0 0 - -

9 0 0 - -

10 0 0 -


5.6 HIRE PURCHASE REPAYMENT SCHEDULE

5.7 CASH FLOW

88

HIRE-PURCHASE REPAYMENT SCHEDULE

Amount 4,000

Interest Rate 3%

Duration (yrs) 5

Year Principal Interest Total Payment Principal Balance

- - 4,000

1 800 120 920 3,200

2 800 120 920 2,400

3 800 120 920 1,600

4 800 120 920 800

5 800 120 920 -

6 0 0 - -

7 0 0 - -

8 0 0 - -

9 0 0 - -

10 0 0 - -


5.8 PROFIT AND LOSS PRO FORMA

89

Green Garden House Ent.PRODUCTION COST PRO-FORMA STATEMENT

Year 1 Year 2 Year 3 Raw Materials Opening Stock 0 Current Year Purchases 67,587 70,501 74,026 Ending Stock Raw Materials Used 67,587 70,501 74,026 Carriage Inward 67,587 70,501 74,026 Salaries, EPF & SOCSO 34,637 34,637 34,637 Factory Overhead

Depreciation of Fixed assets (Operations) 3,298 3,298 3,298

overhead cost 16,440 16,440 16,440 transportation 20,640 20,640 20,640 maintenance 6,000 6,000 6,000 Total Factory Overhead 46,378 46,378 46,378 Production Cost 148,603 151,517 155,042

Green Garden House Ent.PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3 Sales 345,600 362,880 399,168 Less: Cost of Sales Opening Stock of Finished Goods Production Cost 148,603 151,517 155,042

less: Ending Stock of Finishe Goods

0 0 0 148,603 151,517 155,042 Gross Profit 196,997 211,363 244,126 Less: Enpenditure Administrative Expenditure 120,334 120,334 120,334 Marketing Expenditure 27,236 27,236 27,236 Other Expenditure 4,400 4,400 4,400 Business Registration & Licences 165

Insurance & Road Tax for Motor Vehicle

3,400 3,400 3,400

Other Pre-Operations Expenditure 2,400 Interest on Hire-Purchase 120 120 120 Interest on Loan 2,035 1,628 1,221 Depreciation of Fixed Assets 8,498 8,498 8,498 Total Expenditure 168,588 165,616 165,209

Net Profit Before Tax 28,410 45,748 78,918 Tax 0 0 0 Net Profit After Tax 28,410 45,748 78,918 Accumulated Net Profit 28,410 74,158 153,075


5.9 SALES ON SHARE

90


PRO-FORMA BALANCE SHEET

Year 1 Year 2 Year 3

ASSETS Fixed Assets (Book Value) Land & Building 80,000 80,000 80,000 furniture&fitting 10,021 7,516 5,010

lorry 20,000 15,000 10,000

signboard 1,200 900 600 machinery and equipment 2,772 2,079 1,386

machine&equipment 9,673 7,255 4,836

renovation 3,520 2,640 1,760

127,186 115,389 103,593

Current Assets Stock of Raw Materials Stock of Finished Goods

Accounts Receivable

Cash Balance 132,649 175,827 252,175

132,649 175,827 252,175

Other Assets

Deposit 6,040 6,040 6,040

TOTAL ASSETS 265,875 297,256 361,808

Owners' Equity Capital 180,000 180,000 180,000 Accumulated Profit 28,410 74,158 153,075

208,410 254,158 333,075

Long Term Liabilities Loan Balance 54,265 40,699 27,133

Hire-Purchase Balance 3,200 2,400 1,600

57,465 43,099 28,733

Current Liabilities

Accounts Payable

TOTAL EQUITY & LIABILITIES 265,875 297,256 361,808


5.10 FINANCIAL ANALYSIS

91


FINANCIAL PERFORMANCE

Year 1 Year 2 Year 3

PROFITABILITY

Sales 345,600 362,880 399,168

Gross Profit 196,997 211,363 244,126

Profit Before Tax 28,410 45,748 78,918

Profit After Tax 28,410 45,748 78,918

Accumulated Profit 28,410 74,158 153,075

LIQUIDITY

Total Cash Inflow 513,431 362,880 399,168

Total Cash Outflow 380,782 319,702 322,820

Surplus (Deficit) 132,649 43,178 76,348 Accumulated Cash 132,649 175,827 252,175

SAFETY

Owners' Equity 208,410 254,158 333,075

Fixed Assets 127,186 115,389 103,593

Current Assets 132,649 175,827 252,175

Long Term Liabilities 57,465 43,099 28,733

Current Liabilities 0 0 0

FINANCIAL RATIOS

Profitability

Return on Sales 8% 13% 20%

Return on Equity 14% 18% 24%

Return on Investment 11% 15% 22%

Liquidity

Current Ratio #DIV/0! #DIV/0! #DIV/0!

Quick Ratio (Acid Test) #DIV/0! #DIV/0! #DIV/0!

Safety

Debt to Equity Ratio 0.3 0.2 0.1

BREAK-EVEN ANALYSIS

Break-Even Point (Sales) 299,009 292,276 284,685

Break-Even Point (%) 87% 81% 71%


92


CHAPTER 6

93


CONCLUSION

As a conclusion, we are the new comer of this kind of business. So, we have to show that

we are able to compete with other competitors around us so that our company will achieve our

vision and mission.

In the future prospect, we are also aim to get better profit since the efficient commitment

that have been given by the staff of Green Garden House Enterprise. We are planning to increase

our productivity and improve the quality of production.

Hence, we want to grow up Malaysia economy to achieve our Prime Minister’s target in

RMK-9 is exceed 3.8% in agricultural.

CHAPTER 6

94


APPENDICES

95

ggh(hard cover)

Documents

business operation

business resources

business able

business expectations

business strategies

business proposal

business goals

purposed business venture