Business Proposal
Business Proposal
Business Proposal
0 Executive Summary
I Company was establish by 13 young entrepreneur who wants to sell something
that are creative and innovative to meet the demand of customers. We will starts selling
I Ball on 30 April and 2 May and the time is from 8 am until 5 pm. The revenue will be
held at UMS librarys car park.
Our company have our own board of director that contain director, vice director,
secretary, committee members of sales department, marketing department, logistic
department, financial department, and operation department. This is because to make
sure our business run smoothly and success by distributing tasks
I Ball that we offer to customers is special and cannot be found in any cafe in UMS.
I Ball is innovative foods compared to ordinary rice ball. We will specialize in three and
difference ingredients which is meat, chicken and seafood. I Ball is made from rice,
cheese, salt, minced beef / chicken/seafood, garbage, onion, black pepper. The secret
sauce is made from Chili Boh, sugar, salt, garlic. The process is the cooked rice mix
with those ingredient then fry it and lastly serve with secret sauce. . I Ball have a
nutrients and the price is affordable can be bought by our target market.
The unique of I Ball is the recipe that we know that all the people want to have a
complete meals in short time. By the way, they dont have extra time to make for it. So, I
ball is suitable for them to have a complete meals but we do it small as it is easy to eat
and save time. We also have competitive advantages compared to other competitors in
the market is we serve the high quality of I Ball to our customers.
Our main target market are students, lecturer and staff (large population) of UMS. I
Company will use a different type of promotion such as personal selling, advertising
(print poster and banner) and rely on the power of social network to attract customers
as many as possible .Communication skills also need to practice before the EXPO.
Communication skill is important because it will directly affect action of customers.
Our company name is I Company. The alphabet I stands for innovation as we sell
innovative rice ball (Please refer appendix-our logo at the back) Our company using a
partnership(13 member) method to run our business and will play their role in the
business. Each member of I company have difference skills and experience and they
will run our business smooth and success.
2.1 OBJECTIVE/MISSION/VISION
2.1.1 Objective
2.1.2 Vision
Our vision is SERVING BEST TO YOU. This vision means that I Company will
give our customers high quality of I Ball and service to fulfill our customers
needs.
2.1.3 Mission
I Company will use secret sauce to make our product (I Ball) to make a special
taste.
I Company will provide high quality and acceptable of food for customers.
I Company will keep cleanliness of the environment.
2.2 LOCATION OF BUSINESS
The venue is at the UMS librarys car park (no 17).
2.3 COMPETITIVE ADVANTAGES
I Company will have competitive advantages compared to our competitors. This is
because we will serve high quality of I ball to customers and offer affordable price to our
2
customers. This is because we know most of our customers will be students of UMS.
Although our product (I Ball) is small in size, but it is a complete meal that contain
carbohydrate, fiber, protein and vitamin and it is easy to be served.
3.0 MANAGEMENT PLAN
Management in business is getting work done through others. 1 According to Fayol,
managerial
controlling. 2
We also have our Gantt Chart.3Gantt Chart is a graphical chart that shows which
tasks must be completed at which time in order to complete a project or task. (Please
refer appendix at the back)
3.1 MANAGEMENT PROFILE (please refer organization chart at the back)
Director
Name
Skill
Roles
Vice Director
Name
Skill
Roles
William Mc William.(2010).MGMT.3
William Mc William.(2010).MGMT.4
William Mc William.(2010).MGMT.29
Skill
Roles
Marketing Department
Name
: 1) Xing Yujie
: 2) Xin Ze
Skill
Roles
: Products storage.
: Design poster to paste at the crowded place to attract customers.
: Distribute promoting items to the market target and locations.
: Minimum purchase cost and budget. On the other hand, maximum sales
and profit.
: In charge of promotions activities
Sales Department
Name
Skill
: Production
Roles
: To do market survey.
: Conduct product testing before launching the product.
: To implement strategy on how to boost sales.
: Maintains the quality of the product.
: Analyze SWOT (strength, weakness, opportunities and threat)
4
Skill
: Budgeting
Roles
Operation Department
Name
Skill
: Implementing
Roles
Logistic Department
Name
: 1) Xiong Wei
Skill
Roles
: Make sure the product must in time at UMS librarys car park.
: Make sure all the equipment like chair and table in prepare and well
manner when EXPO day start.
: Arrange transport
4.0 PRODUCT/PROCESS
4.1 Product and Service Description
Our main product is I-Ball. (Please refer appendix at the back) I-Ball was made in a
small portion but complete what we need in our body such as protein and vegetables.
We used fresh ingredient and we mainly focus on how to attract people through our
people.
Thus, we also survey few ingredients at the market. We chose high quality
ingredient but in a lower price so we people will afford to enjoy it. We will decorate the
box for the packaging to attract people and provide the ingredient at the box so people
would know if they have allergic like seafood, egg and so on. These information was
very important to make people feel secure to eat the I-Ball.
Due to the location of stall is at the University Malaysia Sabah (UMS) our main
target market student and staff. These target ease us to build our product and its
function as well such as easy to carry everywhere, save time for those who run after the
time and so on.
4.2 PROCESS OF THE PRODUCT
Ingredient of I-Ball
For the ball: Rice, cheese, salt, minced beef / chicken / seafood, garbage, onion, black
pepper
For the sauce: Chili Boh, sugar, salt, garlic
4 I-Ball in a box but guarantee it will full your stomach. Even though it serve in a small
portion it contain what we need in our body such as protein and nutrients.
Furthermore, I-Ball have a varieties of flavour such as beef, chicken or seafood.
They can choose what type of flavour the love to taste. These help people to choose
what kind of flavour they love and not control by only one flavour.
Besides that, the product that we are going to selling is 100% Halal. This means the
product is suitable for all religions. These guarantee will make people secure to eat
especially for a Muslim people which can't eat certain meat such as pork.
In addition, people will enjoy the cheap price so they afford to buy the I-Ball. The
price is RM3.50 RM4.50 (4 pieces) and these will full every stomach of our customer
and they will not feel regret to buy for it.
To made people easy to recognize the ingredient we made the information of I-Ball
at the back of packaging so our customer know a bit information of our product. The
box will made our customer easy to bring it anywhere due to its size and also easy to be
serve.
competitive advantage. This is because, they need to identify the new products in the
food market and trends that excite consumers to succeed.
5.1.2 Competition Analysis
A company must have a competition analysis in order to run a business
successfully. The competition analysis is an analysis that consist all the competitor
around us and it would help the company to describe the product that company offer
and how it compares to what the competition has to offer.
By having this competition analysis, it can help our company to understand our
businesss competitive advantages and disadvantages in this industry. For example, Ipartnership company can be inform basis to develop strategies to achieve competitive
advantage. Competition analysis will allow the company to track how the business
compares in term of product, financial and other.
In depth analysis of the industry competitors can help I-partnership company to
identify opportunities for improvement in business.
5.2 MARKET ANALYSIS
In this product, our target market are more focus on student, lecturer, and other UMS
staff. They are more interested in new product and our selling price is affordable
5.2.2 Size of Market
On the 30th of April and 2nd of May, there are more than 30 stalls will be conducting
in the Expo event. The expected of population are over 5,000 hundreds.
5.2.3 Potential Market
Based on our target market, 50 percent that could be our potential customer is students.
Most of them consist of post-graduates and undergraduates. At the same time, other
staff and lecturer consist 30 and 20 percent respectively. (Please refer pie chart at the
back)
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rice
ball
have
variety
of
ingredient
inside
it
such
as
cabbage,
chicken/meat/seafood, cooked rice, egg, parsley, breadcrumbs and some flavouring like
salt, secret sauce. It seems like a complete and big plate of meal, but we are do it small
like rice ball. So, it is easy to serve and eat. Although budget of I Company is low, but
our member want to keep our I Balls quality as high as possible.
Besides that, packaging is important to I Company and customers because it can
promoting, and prevent spoiling and protect our I Ball. A good packaging will give I
Company more promotional effect than it could get with advertising. I Company will use
transparent polystyrene .So that, customers will be able to see the creation of our
product and make evaluation to our product.
6.3 PRICE
Price is the amount of money that is exchange for something value. 5 It is one of the
four major strategy in marketing plan that we need to control it. This is because it will
affect the interest of customers to buy and directly will affect the number of sales.
Customers will not buy the product is we set too high or too low. This is because
5
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customers will think our product low quality and not good enough. On the other hands,
customers unable to buy the product because it is expensive and it is not worth to
purchase it.
So, I Company is sell I-BALL (rice ball) have decided to sell with reasonable price
which is same as the market price so that customers are affordable to buy and try our
delicious products to boosting our daily sales. We have three and difference kind of
choices for our rice ball that is meat, chicken and seafood. So, we set three prices for
difference product because we consider the different ingredient (meat, chicken and
seafood)inside the rice ball . That is: RM 4.00 (meat),RM 3.50 (chicken),RM 4.50
(seafood)
6.4 PLACE
Definition of place is making goods (I Ball) available in the right quantities and
location when customers need them. 6The venue is at the UMS librarys car park, no 17.
(please refer the map of stall at the back).As you can see, there has so many people
pass through every day and there is a good way to help us get people as many as
possible. So, this definitely can attract customer to purchase our product and it will bring
a lot of convenience to our customer.I Company will use direct channel (no need to
convince other channel for help) to distribute I Ball.
6.5PROMOTION
Promotion is communication tool that use to deliver information between I Company
and their potential customers to influence their attitude. It also involves telling our
potential customer the right product (I Ball) is available at right place (UMS librarys car
park) with the right price (RM3.50, RM4.00, RM4.50). 7
We will use personnel selling and mass selling to promote I Ball. I Company will
deliver I Ball product information to lecturer, course-mate, classmate, schoolmate,
roommate, staff of UMS and friends. I Company will tell them date, venue, time and
6
12
place to them. I company will also make announcement when lecturer class. It is useful
to I Company as it can get immediate feedback from them. We can persuade them to
pay a visit and make pre-order with personnel selling.
Besides that, we also use mass selling that involves advertising. We will decorate a
banner and put at our food stalls to let customers know what we are selling for. We also
will design and print poster that containing some information about the product (I Ball),
venue, price, date and the time available. After that, we will paste those poster in the
place which are crowded .
Second, we can rely on the power of social network. We can post information on
Twitter and Facebook because social network have become a new media for
advertising. We also can make pre-order on the website. So that the customers can get
I-Ball early without need to queue up .This decision make because we consider most of
our customer is UMS student and will have lecturer class on that day.
7.0 OPERATION MANAGEMENT
In our introduction of production and operations management, there are several
different methods of handling the conversion or production process such as job, batch,
flow and group process. The various methods of production are not associated with a
particular volume of production. Similarly, several methods may be used at different
stages of the overall production process. Our company suggested flow process as our
production process which is the product is produced in large quantities with the same
features and quality. Usually, machines or equipment used will be arranged according to
a production flow in order to facilitate the process of production.
In order that flow methods can work well, the product or the production tasks must
be standardised. Flow methods are inflexible, they cannot deal effectively with
variations in the product although some variety can be accomplished through applying
different finishes, decorations and others at the end of the production line.
7.1 OPERATING CHART
13
There are one operating chart that our company used to make sure our operation
plan is in a good condition such as chart flow. Flow chart is a type of diagram that
represents the workflow or process and showing the steps of making I Ball. (Please
refer flow char at the back).
7.2 CAPACITY AND FACILITIES THAT REQUIRED
Capacity of the production is estimate the amount of product that can be produce in
a time like a day or a week. So, our manager has decide the capacity and facilities that
we are need that is in the first day of EXPO day, we will use several box to put the I-ball.
And the second week of the EXPO day we will use box to put the I-ball. So our product
get a good response, so we will increase the amount of our product in the second week.
7.3 RAW MATERIALS MANAGEMENT
The product of our company are based on rice that is I Ball which is innovation from
Nasi Campur to I Ball. There are many ingredients that used in I Ball such as rice,
garlic, meat, chicken, cabbage, breadcrumbs, salt, egg, parmesan cheese, mozzarella
and sauce. All the ingredients does not contain any preservative agent. Therefore, our
product is non-durable. In order to keep the I Ball are always in a good condition, we will
put the products into heat-resistant container and we will produced our product in total
of 150 serving of I Ball per day during the expo. Our company also tries to minimize the
cost of production to make sure all the management going smoothly.
7.4 PLANNING OF OPERATION
For the daily production planning, we decide to sell 150 I-ball in a day in the first
week of EXPO day. In the second week of the EXPO day, we will increase our sell of the
I-ball. For the human resources management that we use, in our company, we have 12
members and every members has their own responsibility and have a skilled in their
own work. So our president and our vice president have to plan the whole events and
manage the member of the I Company to do their work. The secretary is responsible to
record all the minutes what members have to discuss in the meeting and do the
business proposal on time. The financial department has responsibilities to manage the
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company finance and done their budget for the whole events. The marketing and sales
department need to design poster and make sure we have gain the profit well. The
operation department need to prepare a schedule for operation management. Logistic
department need to make sure all the product arrive on time. So every members will
have their own responsibilities in making this event success.
7.5 QUALITY MANAGEMENT OF THE PRODUCTION
Quality is meet or exceed the needs and satisfaction in the use of product. Quality
of the product is a product that meets the requirements of standard and suitable for use.
The quality of product is very concern and willing to pay more to get a quality goods. So,
the product that we sell which is I-ball is a quality product. We are confident that our
product meet the requirement of the customers. The product that we sell also can
generate profits and improve the competitiveness of our companies in the market.
7.6 STOCK MANAGEMENT
7.6.1 SUPPLIER
The main supplier to our product is Giant Hypermarket in the 1 Borneo Hyper mall
located in Unit No. G-200, Concourse Floor, 1 Borneo Hyper mall, Jalan Sulaman, Kota
Kinabalu, Sabah. Agent contact number is 603-5544 8888 and fax number is 603-5544
8646. We choose this company for our main supplier because this company is stable in
their business and their performance in business to gain more costumer and make more
profit also great. So we decide to take them as our main supplier.
7.7 OPERATION BUDGET (Please refer appendix at the back)
8.0 Financial Plan
I Company decides to collect amount of RM25 each members for the business
(Total of 25x13 = RM325). The collection purpose are for the raw materials, rental,
advertising and anything regarding to the business.
8.1 Detailed of the cost for each item
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Operation Budget
Cost
No
.
Item
per Unit
Quantity
(RM)
Cost
Cost
per
per 300
Serving
Servings
(RM)
(RM)
Rice
25.50
10 kg
0.09
25.50
Garlic
4.99
1 pack
0.02
4.99
Meat
19.90
4 pack
0.27
79.60
Chicken
17.40
4 pack
0.23
69.60
Cabbage
1.59
0.01
3.18
Breadcrumbs
4.10
0.11
32.80
Salt
1.20
0.01
1.20
Egg
8.99
2 box
0.06
17.98
Parmesan cheese
17.49
0.12
34.98
10
Mozzarella
19.99
0.13
39.98
11
Sauce
6.45
4 bottle
0.09
25.80
1.14
335.61
Total
16
Estimated Profit
No
.
Price
Per
Serving
(RM)
Item
Estimat
ed
Estimat
Quantity
ed
Sold
Revenue
(cup/set
(RM)
)
Estimat
ed Cost
(RM)
Estimat
ed
Profit
(RM)
Chicken I Ball
3.50
70
245.00
60.90
184.10
Meat I Ball
4.00
40
160.00
36.40
123.60
Seafood I Ball
4.50
40
180.00
45.00
135.00
585.00
142.30
442.7
Total
Other cost
Materials
unit (RM)
Quantity
Amount (RM)
1.
Banner
80.00
80.00
2.
Rental
40.00
Total
120.00
17
RM
RM
SALES
MINUS COST OF SALES
585.00
(262.30)
GROSS PROFIT
322.70
80.00
40.00
(120.00)
NET PROFIT
202.70
RM
NIL
CASH RECEIVED
CAPITAL (RM25 13)
SALES
TOTAL CASH RECEIVED
CASH PAYMENT
Raw material
Banner
Rental
TOTAL CASH PAYMENT
CASH BALANCE
325.00
585.00
910.00
142.30
80.00
40.00
(262.30)
647.70
18
647.70
RM
EQUITY
CAPITAL
325.00
PROFIT
202.70
LIABILITY
CASH
TOTAL ASSET
647.70
0.00
TOTAL LIABILITY
AND EQUITY
647.70
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various types of background, races, religion and ages. So, the company have to come
up with a product that suitable with their taste. Hence, all of them can buy and taste the
company products without doubts or hesitation.
As for the financial, the company might have to tackle the financial crisis if the profit
is below the expected cost and there's no profit from the sales. Every financial approach
should be look into meticulously with sensible and fair judgement. The company can fall
into a critical state if the financial approach does not carry out effectively.
Since the company do business based on food, raw materials are very essential
and should be considered thoroughly. The quality of the food comprises the materials
and the ingredients prepared. Low quality raw materials will result in low buying cost but
it is not good for the customer and surely it is bad for people's health. I Company will
have to face freshness of I Ball. This is because our business hour quite long that starts
from 8am to 5 pm.
EXPO day will start from morning until evening (8am to 5pm).All our member is fulltime student and need to attend lecturer class without escape from the class. By the
way, they also need to take care I Companys stall from 8 am to 5pm.
There will be many competitors on the day of selling the products or services. So,
publicity is important. Low creativity and innovative in publicity of the company's product
will result in lack of customers and it will directly influence our profit.
9.2 OVERCOMING THE RISKS
After analyzing the possible risks that the company would risks before or during
the product selling, precaution steps that should be taken are listed.
One of the first risks that we should overcome is the customers preference. The
ingredients of the food should come from a trusted source specifically JAKIMs seal as a
proved to the Muslims customers that the food is halal and save to eat. Moreover, the
product consists of fresh organic vegetables and meats which are nutritious and
healthful. Not only has it been good for health but it is also tasty which suits the
customers taste.
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Secondly, our I Company has a financial manager who will in charge for manage
our group finance and calculating the company's profit or loss. Our financial manager
need responsible to all the expenditures have been done and balancing the budget. So
that, we will not facing any loss. All of the budget required and used will be calculated
accurately to make target of the company's profit. They also have to make sure that the
cash outflow will not exceed beyond the calculated numbers.
For the raw materials, we will be picked and choose those who are fresh and high
quality of food materials. We will buying large packet of of the raw material packets to
get lower price than buying it in a small packets. It will be bought a day before the expo
and stored in a suitable storage to avoid spoilage of the materials. This is because I
Company want fresh and high quality food materials to be serve. The amount of buying
materials also important to avoid wasting or over used, so, we need to measure
accurately before we purchase our material.
Lastly, publicity will be done in a week before the expo started to make sure that
customers know our product and have desire to buy it. Poster will be design and pasted
at the crowded place and will be distributed to our potential customers. Besides that, the
focal point for the product packaging is to ensure it is handy and eye-catching at the
same time. Last but not least, an attractive appealing stall is also important to gain more
attention from the buyers.
10.0 CONCLUSION
Based on the planning that were presented, I Company optimistic that this business
venture will break even lucrative.
Research and systematic plan has been developed to enable the smooth running of the
business and thus can achieve profits. I Company confident and believe this business
can help us as students to be in part of business. Therefore, I Company hope this
application will be considered from the UMS through this funding business can operate
more efficiently and is able to contribute to the EXPO APK.
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Appendix
ORGANIZATION CHART
I-Company is in the form of small food stall that sell I Ball. The human resources in
administration consist of 13 members.
Director
Director
MUHAMMADHAZRUL
HAZRUL
MUHAMMAD
ViceDirector
Director
Vice
MARGARET
MARGARET
22
Secretary
Secretary
HAZWANI
HAZWANI
MarketingDepartment
Department
Marketing
SalesDepartment
Department
Sales
XINZE
ZE
XIN
NADHIRAH
NADHIRAH
XINGYUJIE
YUJIE
XING
SHAFAWANI
SHAFAWANI
FinancialDepartment
Department
Financial
OperationDepartment
Department
Operation
SANI
SANI
NADIAH
NADIAH
NATALYN
NATALYN
NORALEN
NORALEN
LogisticDepartment
Department
Logistic
XIONGWEI
WEI
XIONG
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Project
Week
Week
Week
Week
Week
Week
Week
Week
Week
Week
Week
10
11
17/02- 24/02- 03/03- 10/03- 17/03- 24/03- 31/03- 07/04- 14/04- 21/04- 28/0423/02
02/03
09/03
16/03
23/03
30/3
06/04
13/04
20/04
27/04
Group
discussion
develop
for
to
idea
what
we
need sell
Distribute
the
job to member
of I Company
Narrowing the
idea
Survey
and
analysis
the
market
Making
and
testing
the
product
Improve again
the product
Make sure the
price
and
material used
24
4/05
Promotion
Operate
and
manufacture
product
EXPO day
Plate meals
25
26
Operation Chart
27
RESUME
RESUME
NAME
POSITION
: Director
AGE
: 23
QUALIFICATION : Diploma
COURSE
ABILITY
EMAIL
: Entrepreneurship
: Have good communication and leading skills.
: [email protected]
RESUME
28
NAME
POSITION
: Vice Director
AGE
: 21
QUALIFICATION : STPM
COURSE
ABILITY
EMAIL
: International Business
: Have good promoting skills and secreatary.
: [email protected]
RESUME
29
Name
Position
: Operation Department
Age
: 21
Qualification : STPM
Course
: Tourism Management
Ability
: Implementing
30
Name
Age
Position
:Operation department
Qualification :STPM
Course
Ability
31
RESUME
Personal Particulars
Name
Age
: 25 years old
Qualifications
Course
: Tourism Management
Ability
RESUME
32
Personal Particulars
Name
Age
: 23 years old
Qualifications
Course
: Tourism Management
Ability
33
Resume
Name
Position
: Secretary
Age
: 23
Qualification
: Diploma In Business IT
Courses
: International Business
Ability
34