BUSINESS PLAN OF XYMMER BATIK - repository.president.ac.id
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BUSINESS PLAN OF XYMMER BATIK By Julia Ratih Gita Dwiyana Sitompul ID no. 015201500082 A Skripsi presented to the Faculty of Business President University in partial fulfillment of the requirements for Bachelor Degree in Business Administration August 2018
Transcript of BUSINESS PLAN OF XYMMER BATIK - repository.president.ac.id
BUSINESS PLAN OF XYMMER BATIK
By
Julia Ratih Gita Dwiyana Sitompul
ID no. 015201500082
A Skripsi presented to the
Faculty of Business President University
in partial fulfillment of the requirements for Bachelor Degree in Business Administration
August 2018
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PANEL OF EXAMINERS APPROVAL SHEET
The Panel of Examiners declare that the Business Plan entitled “Xymmer Batik”
that was submitted by Julia Ratih Gita Dwiyana Sitompul majoring in Business
Administration from the Faculty of Business was assessed and approved to have
passed the Oral Examinations on 8th August 2018.
Dr. Retnowati
Chair - Panel of Examiners
Christina Liem, ST., M. Comm
Examiner I
Anggraeni Permatasari, S.Sos.,M.S.M Examiner II
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PLAGIARISM DOCUMENT
iii
CONSENT FOR INTELLECTUAL PROPERTY RIGHT
Title of Business Plan: Business Plan of Xymmer Batik
1. The Author hereby assigns to President University the copyright to the contribution
named above whereby the university shall have the exclusive right to publish the
contribution and translations of it wholly or in part throughout the world during the full
term of copyright including renewals and extensions and all subsidiary rights.
2. The Author retains the right to re-publish the preprint version of the contribution without
charge and subject only to notifying the University of the intent to do so and to ensuring
that the publication by the University is properly credited and that the relevant copyright
notice is repeated verbatim.
3. The Author retains moral and all proprietary rights other than copyright, such as patent
and trademark rights to any process or procedure described in the contribution.
4. The Author guarantees that the Contribution is original, has not been published
previously, is not under consideration for publication elsewhere and that any necessary
permission to quote or reproduce illustrations from another source has been obtained (a
copy of any such permission should be sent with this form).
5. The Author guarantees that the Contribution contains no violation of any existing
copyright or other third-party right or material of an obscene, indecent, libelous or
otherwise unlawful nature and will indemnify the University against all claims arising
from any breach of this warranty.
6. The Author declares that any named person as co-author of the contribution is aware of
this agreement and has also agreed to the above warranties.
Name: Julia Ratih Gita Dwiyana Sitompul
Date: Agustus 2018
Signature:
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ACKNOWLEDGEMENT
Praise the Lord. Thank God for all of the guidance, all of the wonderful journey in my university
life and for all of the process that I have done to make me become a better person. Without Your
love, I could not accomplish my final project and finishing my study in President University on
time.
In this opportunity, I realize that I could not finish this final project without the support from
many parties. Therefore, I would like to express my special thanks to these people who
contributed their time and help me to complete this Business Plan:
1. My favorite human in this world, Kakek, who have always supported me in everything I do
and always proud of me. I hope, you will be happy in heaven right now, because I have
completed my promises to you.
2. Mama and Papa who always provide everything that I need and love me for who I am. My
sister, Audrey, I have learned a lot from you, thank you. My Oma, who always listen to my ups
and downs and be there for me when I need her.
3. My second Mom, also my lovely advisor, Mam Anggraeni Permatasari, M.S.M who always
help and has a sincere heart to give any suggestions, and support me to finish this Business Plan
in time.
4. My other half, Daniel Tobias Hobday, who always cheers me up and motivates me whenever I
feel insecure with myself.
5. My Head of Business Administration Study Program, Suresh Kumar, ST., M.Si. Thank you
for your understanding, support and willingness to let me do and finish one of my dreams in life
through this Business Plan.
6. All of my best friends, Iki, Yue, Ike, Frisca, Siti, Lady, Jovita, Marsintha, Poppy, Vio, Shelia,
who always have their own part in my heart and as a place for me to share everything.
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7. Ibu-Ibu Arisan who always become my supporter and color my University life. You guys are
rock and cheerful.
8. The Foundation of Mr & Ms President University who become a part of my family in this
university. I couldn’t imagine how my University life will be, without the support of this
foundation. This is the right place to become the best version of yourself, and I prove it.
9. To all crazy, lazy classmates in Entrepreneurship 2015, that always makes their own way to
make a whole class laughing and make the unforgettable story in my university life.
10. All of my best friends from my Senior High School, Revita, Sarah, Marlathasia, Nina, Risky,
and Dewa who become my story listener and my support system during the process to finish this
final project.
11. Putra Putri Batik Nusantara & Putra Putri Batik Karawang who helped me a lot o find my life
goals, and direct me to have many connections that have the same mission, to preserve
Indonesian Batik.
12. My pastor, Mr. John Paul and his wife Mrs. Fifi Julia, who prays for the best and lead me in
the right way and walk with Jesus.
13. My Church. God's Dna Jababeka, as my second home in Cikarang, Ci Hany, Nadia, Epin, Ci
Hana, also the people that always support me and remind me if I do something wrong.
14. The sisters, Indrakila family, especially Mbak Upik for becoming the best tailor for Xymmer
Batik.
15. Last but not least, my Business plan’s mentor, Aam Hamada, the owner of Kekean Wastra
Galery who support me and willing to share his knowledge and business experienced to me.
Cikarang, 8th
August 2018
Julia Ratih Gia Dwiyana Sitompul
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TABLE OF CONTENT
PANEL OF EXAMINERS APPROVAL SHEET ...................................................................... i
PLAGIARISM DOCUMENT ...................................................................................................... ii
CONSENT FOR INTELLECTUAL PROPERTY RIGHT ..................................................... iii
TABLE OF CONTENT ............................................................................................................... vi
EXECUTIVE SUMMARY .......................................................................................................... x
CHAPTER I .................................................................................................................................. 1
INTRODUCTION......................................................................................................................... 1
1.1 Name and Address of the Business ............................................................................... 1
1.2 Name and Address of Principal .................................................................................... 1
1.3 Nature of Business .......................................................................................................... 1
1.4 Statement of Financial Needed ..................................................................................... 1
1.5 Statement of Confidentiality Report ............................................................................ 2
CHAPTER II ................................................................................................................................. 3
DESCRIPTION OF VENTURE .................................................................................................. 3
2.1 Venture Description ............................................................................................................ 3
2.2 Vision and Mission .............................................................................................................. 3
2.2.1 Vision of Company ....................................................................................................... 3
2.2.2 Mission of Company .................................................................................................... 3
2.3 Size of Business .................................................................................................................... 4
2.4 Logo and Description .......................................................................................................... 4
2.5 Tag Line ............................................................................................................................... 5
2.6 Background of Entrepreneurs ........................................................................................... 5
2.7 Current Status ..................................................................................................................... 6
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CHAPTER III ............................................................................................................................... 7
INDUSTRY ANALYSIS .............................................................................................................. 7
3.1 Environmental Factor ......................................................................................................... 7
3.1.1 Legal Concern (Political) ................................................................................................. 7
3.1.2 Economy ............................................................................................................................ 8
3.1.3 Social (culture) ................................................................................................................ 10
3.1.4 Technology ...................................................................................................................... 11
3.2 Industry Analysis .............................................................................................................. 13
3.3 SWOT Analysis ................................................................................................................. 15
3.4 Porter’s Five Forces Analysis ........................................................................................... 15
3.6 Competitor Analysis.......................................................................................................... 17
CHAPTER IV.............................................................................................................................. 20
EXECUTION PLAN .................................................................................................................. 20
4.1 Marketing Plan Executive Summary .............................................................................. 20
4.2 Segmentation, Targeting, Positioning ............................................................................. 20
4.2.1 Segmentation ................................................................................................................ 20
4.2.2 Targeting ....................................................................................................................... 21
4.2.3 Positioning .................................................................................................................... 21
4.3 Estimation of Monthly Sales ............................................................................................ 21
4.4 Marketing Strategy ........................................................................................................... 22
4.4.1 Product .......................................................................................................................... 23
4.4.2 Price .............................................................................................................................. 23
4.4.3 Process .......................................................................................................................... 23
4.4.5 Place.............................................................................................................................. 26
4.4.6 People ........................................................................................................................... 26
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4.4.7 Physical Evidence ......................................................................................................... 26
4.5 Target of Sales Yearly ....................................................................................................... 27
4.6 Marketing Budget ............................................................................................................. 28
4.7 Implementation ................................................................................................................. 29
4.8 Production Planning ......................................................................................................... 30
4.8.1 Standard Operating Procedures .................................................................................... 34
4.8.2 Equipment / Materials .................................................................................................. 35
4.8.3 Key Supplier ................................................................................................................. 37
4.8.4 Flow of Production ....................................................................................................... 38
4.8.5 Store Layout ................................................................................................................. 39
4.8.6 Quality Control ............................................................................................................. 39
4.9 Overall Operational Plan ............................................................................................ 40
4.9.1 Process Planning ........................................................................................................... 40
4.9.4 Operations Strategy and Plan ....................................................................................... 44
4.9.5 Company Operations .................................................................................................... 44
4.9.6 Operation Budget .......................................................................................................... 45
4.9.7 Operations Hour ........................................................................................................... 45
4.10 Organizational Planning ................................................................................................. 46
4.10.1 Company Structure and Job Description .................................................................... 46
4.10.2 Salary and Compensation System .............................................................................. 51
4.10.3 Code of Conduct (Rules and Regulations) ................................................................. 52
CHAPTER V ............................................................................................................................... 54
FINANCIAL PLAN .................................................................................................................... 54
5.1 Sources and Uses of Fund Statement .............................................................................. 54
5.2 Assumption Sheet .............................................................................................................. 54
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5.2.1 General (Assumptions) ................................................................................................. 54
5.2.2 Financial Statements (Assumption) .............................................................................. 54
5.3 Cash Flow ........................................................................................................................... 56
5.4 Break Even Analysis ......................................................................................................... 59
5.5 Income Statement .............................................................................................................. 60
5.6 Balance Sheet ..................................................................................................................... 61
5.7 Ratio Analysis .................................................................................................................... 62
CHAPTER VI.............................................................................................................................. 63
MILESTONE .............................................................................................................................. 63
CHAPTER VII ............................................................................................................................ 64
ASSESMENT OF RISK AND CONTIGENCY PLAN ........................................................... 64
7.1 Possibility Risk.................................................................................................................... 64
7.2 Contingency Planning ......................................................................................................... 66
CHAPTER VIII .......................................................................................................................... 69
EXIT STRATEGY ...................................................................................................................... 69
BIBLIOGRAPHY ....................................................................................................................... 71
APPENDIX .................................................................................................................................. 75
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EXECUTIVE SUMMARY
Recently, the use of traditional cloths as everyday clothes is starting to attract people's interest.
One of them is Batik. Batik is Indonesia's pride product that has been recognized internationally
through UNESCO as a World Cultural Heritage in 2009.
However, the problem is the limitations of traditional Batik which is packaged in a fashionable
manner and follows a trend that is far from being old-style. Besides that it is a matter of
availability or access to sellers who can meet the tastes and interests of the community,
especially women who want to always look attractive.
Through the variety of choices that are always updated, Xymmer Batik is the solution to these
problems. In addition, the Xymmer Batik Business has implemented effective e-commerce to
provide convenience to consumers in buying and selling transactions. This online system will
make the operational and the marketing system become easier. In the other hand, to expand the
target market, Xymmer Batik will make the official website, social media, collaborate with e-
commerce platforms, fashion bloggers and join the exhibition.
Xymmer Batik itself has the concern with the product quality and become stylish with the simple
and ready to wear clothes. Xymmer Batik’s capital is Rp. 500,000,000. The source of the capital
comes from the owner cash investment and would be allocated for equipment, tools, materials,
starting salaries, building rent, and other expenses.
Keywords: Indonesian Batik, Casual, Ready to Wear, Clothing Business, Fashion Industry
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CHAPTER I
INTRODUCTION
1.1 Name and Address of the Business
Name of Business : Xymmer Batik
Address of Business : Jalan Raya Canggu, Kabupaten Badung, Kuta Utara, 80351
Bali
Indonesia
1.2 Name and Address of Principal
Name of principal : Julia Ratih Gita Dwiyana Sitompul
Address of Principal : Canggu Permai blok A/1, Br. Tibubeneng, 80351
Bali
Indonesia
1.3 Nature of Business
Xymmer Batik is a business that concern in the clothing and fashion line in Indonesia to be
exported to several countries. Here our main task is to be a leader of Batik Clothing in the young
people by organizing the production process to be made, analyzing the market, searching for
trends and up to date, selling product and marketing, Control the value of chain. To develop this
business, there are several parties involved. The related parties are owner, vendors, government,
customers, courier service, communities, travel and tourism agency, supplier relationship and
competitors
1.4 Statement of Financial Needed
Xymmer Batik finance will be controlled by owner and for starting this business; the capital
needed is approximately IDR 500.000.000 or $35200. The budget will be used for production
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needs, sales and marketing budget, designer, packaging, cost driven, final cost, variable cost,
operational cost of the store and website and other expenses.
1.5 Statement of Confidentiality Report
This document created for thesis compliance. The purpose of this information, data, and all
embodied in this business plan are provided in confidentiality. May not be disclosed to any third
party or used for any purpose without the express written permission of the principal mentioned
above.
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CHAPTER II
DESCRIPTION OF VENTURE
2.1 Venture Description
Batik occupies a special place in Indonesian culture. Each fabric has a rich story to tell as a
reflection of the nation's religious beliefs, sophisticated court cultures and cosmopolitan history
(Rudolf Smend, 2016)). Batik and the fashion design development in the last decade cannot be
removed from cultural development (visual culture) development efforts, as artifact-based local
wisdom in particular spurred the creative sector of the economy. The knowledge of the fashion
or design, really support the newborn of the new fashion works by using the technique of Batik.
Therefore, it could be a source of innovation in the making of new design, fashion styles and
ornament of Batik itself. In conclusion, Batik and fashion got an important position in the
development of culture.
The business idea of Xymmer Batik originated from a love of the owner against Batik. We found
out that there is the difficulty of selecting an interesting and appropriate Batik with a young and
chic style. Therefore, it becomes a great opportunity in to create Batik as a clothing line business.
Batik can be used as a daily fashion style and also represent the masterpiece of Indonesia. In
addition, based on the results of the research, young people prefer to buy clothes based on the
design of the on other factors. Thus, Xymmer Batik will be presented with the concept of a
young fashionable style and can be used in daily style. We believe that our clothing line could be
acceptable and success in the market.
2.2 Vision and Mission
2.2.1 Vision of Company
To become the leader of Indonesian Young Modern Batik Company in international fashion with
high quality product.
2.2.2 Mission of Company
1. Creating and controlling high quality materials with the Indonesia original process of Batik
2. Always put commitment and integrity to create customer satisfaction
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3. Consistency to always innovate and keep updated with the fashion world
4. Develop market oriented strategic marketing
5. Produce best quality of products and services based on market orientation
2.3 Size of Business
Based on UU No.22 Tahun 2008 about UMKM, Xymmer Batik is classified as a small enterprise
category. It is because the annual income of Xymmer Batik will be less than Rp.2.500.000.000.
2.4 Logo and Description
Figure 1.1 Xymmer Batik Logo
Xymmer Batik’s logo comes from; Kawung Batik pattern, in the Javanese belief, Kawung (palm
trees) is interpreted as a clean portrayal of the heart. Philosophy of the palm tree was also
published in this Kawung motif. Palm trees have benefits for humans from the tip of the leaves to
the roots, both from stems, leaves, sap, and fruit. It symbolizes for human to always be useful for
anyone at any time in their daily life. Therefore, Xymmer Batik wants to give the contribution
for building people confidence when they use our product and become a trusted brand that could
be a great role model to others. Xymmer Batik logo tries to make a young and simple concept
with the touch of Batik like the picture (figure 1.1) and also the logo will show the identity of
Xymmer. Here is the table that shows Xymmer Batik Interpretation based on the color.
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Table 2.1 Color Logo and Interpretation
2.5 Tag Line
“The Xymmer of Batik”
It means the meaning of encouraging the user to feel confidence and exotic beauty in the summer
style with Batik. Besides that, the pronunciation of “Xymmer” is sound like “Shimmer”, while
shimmer itself has the meaning of sparkle and suitable for the person who want to looks
Stunning.
2.6 Background of Entrepreneurs
Julia Rgds as the owner of Xymmer Batik is taking a bachelor degree of Business Administration
majoring Entrepreneurship from 2015 – 2019. She is the part of Indonesian Batik Ambassador
which is Putra Putri Batik Nusantara (PPBN). Putra Putri Batik Nusantara is a beauty pageant
competition, which aims to give deeper understanding about Batik to the young generation of
Indonesia. It has the purpose to create a sense of love and belongings for the young generation to
be able to preserve, develop, and appreciate Batik as the cultural heritage of Indonesia. In
addition, there is an organization that embraces Putra Putri Batik Nusantara, called Ikatan
Pecinta Batik Nusantara (IPBN), which has a cooperation with the Ministry of culture and
tourism of Indonesia (Kementrian Kebudayaan dan Pariwisata RI).Ikatan Pecinta Batik
Nusantara (IPBN) has become an organization that is actively fostering the young generation to
become the successor to a nation that not only intelligent and kind hearted person, but also
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creative, independent and become a warrior that ready to become the entrepreneurial culture of
Indonesia. By involving in that organization, then the owner believes that this business will have
the support of various parties. Besides that, the owner also the ambassador of Batik Karawang,
that is located in Karawang, West Java. In conclusion, the owner has the purpose not only to earn
the profit but also apply the mission and desire to spread the love of Batik all over Indonesia, and
accrosss the world.
2.7 Current Status
Xymmer Batik needs to complete the milestone in order to start its operation plan as explained.
To cover National and International market, several objectives needed by Xymmer Batik with
the purpose of expanding the business from the beginning until success. The objectives are as
follows:
1. Get enough money for the initial capital
2. Permit and Legalization
3. Search and build the partnership for supplier
4. Build the warehouse and buy the machineries
5. Staff recruitments
6. Run the project
7. Implement the marketing strategy
8. Build the partnership with government, travel and tourism agencies, communities
9. Xymmer Batik Launching
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CHAPTER III
INDUSTRY ANALYSIS
3.1 Environmental Factor
Xymmer Batik will use PEST analysis to measure the environmental factors. PEST analysis is a
powerful tool for understanding strategic risk which stands for political, economic, social, and
technology. Undertaking a PEST analysis can raise awareness of threats to ongoing profitability
and help to anticipate future difficulties, so that action to avoid or minimise their effects can be
taken (Blokdyk, 2018). Analysis of external environment used to analyze business through the
analysis of the conditions of political, economic, social, and technological effect directly against
business strategy, for both current conditions and future come.
3.1.1 Legal Concern (Political)
First of all, Xymmer Batik need to take care of Trade Business License or SIUP ( Surat Izin
Usaha Perdagangan ). The trade business license or SIUP is a permission letter to to carry out the
business of the trade and serves as evidence of tools or trading business of Xymmer Batik.
Xymmer Batik is categorized as a small business with an initial capital of IDR 50 to 500 million.
1) In conducting a business, there are some rules and regulation that needs to be followed by
Xymmer Batik. Here are the concerns based on UUD 1945 and Government regulations:
Pasal 90 ayat (1) UU No.13 Tahun 2003 and Perda UMP Pasal 1 No.174 Tahun 2014.
Minimum wages rate, which is based on Government regulation that need to be fulfilled
for the employee’s salary.
2) Pasal 77 ayat 1, UU No 13/2003
3) Work time that is obligated to be given for the employees, which is seven hours working.
4) Pasal 4 ayat (1) huruf c Permendag 46/2009
5) About allowance and NPWP for opening a company or firm
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3.1.2 Economy
Economic factors could determine the overall attractiveness of a market or industry. This factor
also plays a role in a company’s success.
Figure 3.1 the number of Enterprises, Growth, and Contribution of the total business subsector of
creative economy.
From the picture below, shows the number of enterprises, growth, and contribution of the total
business subsector of creative economy year 2013. In this statistic, shows the rate of creative
economy growth in the fashion sector increased by 20.44%. It shows that, fashion industry
(mode) is in the top 3 after culinary and crafts. It means that Xymmer Batik, as the fashion
industry will contribute in the business subsector of the creative economy in Indonesia. But in
the other case, this could be a challenge because it means that Xymmer Batik will have many
competitors. (Titik Anas, 2014). Therefore, Xymmer Batik will face this problem through the
Strength and Opportunity in Xymmer Batik’s SWOT analysis.
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F
Figure 3.2 Data of Domestic Visitor to Bali
Figure 3.2 Data of International Visitor to Bali
According to a major new report Short-Term Forecasts of Visitor Arrivals in Bali, 2018-2020
(Woods, 2018), shows that over the next few years, total visitor numbers to Bali are expected to
increase by 26.3%, from 14.4 million in 2017 to 18.2 million in 2020. This report is released by
Hotel Investment Strategies, a New York-based hotel investment advisory firm with a
representative office in Jakarta.
From the statistic above , we could conclude that the tourists, both from domestic or foreign are
relatively increased every year. This could be a good potential to expand and reach the target
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market of the business. Therefore, the more potential target market that comes to Bali could be
good for Xymmer Batik to do the market research of trends and the customers needs.
3.1.3 Social (culture)
Batik is also one of the real evidence of the results of the Indonesian creative people. Batik is an
expression of culture, glorifying the symbolic meanings of man who used it (Keller, 2012). It has
local wisdom in interpreting each stage of human life. The power of cultural value and the value
of the beauty of batik has captivated people in Indonesia even in the world to make batik as part
of human life. Batik can be a source of pride and passion for the community of Nations and
Indonesia against his country and intercultural interaction can also bridge the local Indonesia
with other cultures in the world.
Based on the data in this figure below, it shows that Batik has the relations and impact for the
nationalism. Xymmer Batik has the willingness to encourage people to respect and preserve
Batik Indonesia through this business. Therefore, if, people in Indonesia have a good nationalism
and love their cultural heritage, this also could be a good way to introduce Indonesia and also
Batik around the world.
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Figure 3.4 Correlations between Batik and the Nationalism
3.1.4 Technology
Currently, technology has a big role in everything, especially in a business. It could help
the business run easier and efficient. For the marketing side, Xymmer Batik will use and
maximize the technology on the internet that provide free marketing strategy. This
strategy, could minimize the expense and as a tool to promote and create the brand
awareness of Xymmer Batik.
E-commerce is one of the examples of the modern technology that could support the
sales of Batik. (Yunita Purnamasari, 2015). Nowadays, there are currently 31.65 million
e-Commerce users in Indonesia, with an additional 22.24 million users expected to be
shopping online by 2022. Four years from now, these 43.89 million e-Commerce users
will spend an average of 375.32 USD online (eshopworld, 2018). Based on the statistics
bellow, it shows that the number of online shoppers in Indonesia is increase every year.
So, this is a really good opportunity to use e-commerce as the platform to promote and
sell Xymmer Batik products.
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Figure 3.5 Number of Online Shoppers in Indonesia
In the production side, Xymmer Batik uses the technology of some machines to make the
production process more efficient and less effort from human resources. Besides that, the
improvement or innovation of technology in transportation also helps Xymmer Batik in
ordering the materials and assist the operations of the business.
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3.2 Industry Analysis
Figure 3.6 The total amount of labor and the growth of creative economy labor absorption
Absorption of labor has a big role and also is driven by the creative industries that important in
the economy. From the statistic above, shows that Fashion industry has a big role in the number
and growth of the employees/ manpower in Indonesia. The number of employees from the
fashion industry is the highest which is 3839 and the growth of employees is 0.77 in 2013. It
means that Xymmer Batik also contribute a Indonesia creative industries that have a big potential
for growing bigger and hire more manpower.
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Figure 3.7 Export value, growth and creative contribution to the total exports of goods exports of
the world
Based on the image below, the 3rd
position of the highest total export products is fashion/mode 7,
77% with a total export value of US $251 million. In conclusion, Xymmer Batik business
produces the products that widely exported from Indonesia. This could be a challenge and also a
good opportunity for Xymmer Batik. The positive thing is Xymmer Batik could have many
links/connection from the same fields to collaborate and complete each other.
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3.3 SWOT Analysis SWOT analysis directs the identification and analysis of strategies by using strategic planning
and focusing attention on the (strengths), weaknesses, opportunities and threats that is critical to
the success of the company (Emet GÜREL, 2017). As a result, the company could achieve goals
based on the vision and mission.
Table 3.1: Xymmer Batik SWOT Analysis
3.4 Porter’s Five Forces Analysis Porter five forces analysis has the purpose to determine the market attractiveness of the business
and also analyze the business conditions of a company (50MINUTES.COM, 2015). Porter's Five
Forces analysis provides a powerful overview of how competitive the industry is from supply
chain (suppliers and customers) and markets (new players and substitutes) (50Minutes.Com,
2015). As a result, Porter’s Five Forces Analysis could determine the profitability of Xymmer
Batik which is the main attraction for an industry, which by knowing the position of a business
based on the forces it has. Five forces of Xymmer Batik are as follows:
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Figure 3.8 Porter’s Five Forces Analysis
A. Threats of new entrants ( The power of new competitors ): High
1) The capital to open a this business relatively small, which is easy for other people to
open the same business as Xymmer Batik
2) Xymmer Batik will make some patent so Xymmer Batik will have a legal brand and
other people couldn’t copy Xymmer Batik
3) Easy to start the business with many ways or alternatives
B. Threat of substitutes ( The power of other services ): High
1) Competitors could offer the lower/ cheaper prices for their Batik products
2) Xymmer Batik creates the unique selling point with the products by giving the best
quality and have a characteristic in every product
3) The common materials could be substituted with similar product
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C. Bargaining power of clients ( The power of costumer ) : High
1) Customers could find other products to substitute Xymmer Batik products easily with
similar materials, or design
2) Xymmer Batik must have a competitive price and pricing strategy for their target
market
3) Xymmer Batik will perform various promotional and marketing strategies and
activities to compete with the competitors and attract the customers
D. Bargaining power of suppliers : Low
1) Xymmer Batik not only use one supplier for production, therefore the threats from the
suppliers are low
E. Rivalry among existing competitors : High
1) Xymmer Batik has lots of competitors in the same industry that already exist with a
strong brand and could face another competitors that will open the same business
2) Other competitors might have bigger capital and put more on advertising and
marketing expenses
3) Xymmer Batik will do the competitor analysis to maximize the performance of the
company and make a differentiation
3.6 Competitor Analysis
Competitors are companies that produce or sell goods and services with the same or similar
products offered. In this case, the main task of Xymmer Batik is to hook customers as much as
possible (both new and old customers) and also how to turn off the pace of the development of
competition. Thus, to reach the goal and optimize the company strategy, the business expected to
be constantly aware of and monitoring any gestures of competitors (Porter, 1998).
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Table 3.2 Competitor Analysis of Xymmer Batik
Company
Name
Xymmer
Batik
Oemah Etnik Populo Batik Sejauh Mata
Memandang
Start Up - Year 2018 2013 2013 2015
Number of
employee
8-9
employees
- 11-50 employees 1- 50 employees
Customer
Segment
Young
people and
adult who
love fashion
Young people Young people Young and adult
Product Fashionable
Batik
(ready to
wear for
woman)
Clothing,
Accessories
(woman only)
Fashion, ready to
wear (man and
woman)
Batik textile,
Wardrobe,
Apparel, Scarves
and Shawl
Place No store,
online only
Metro Dept.
Plaza Senayan
Metro Dept. Puri
Indah Mall
Jl. Terusan Hang
Lekir 1 No.25,
RT.10/RW.8,
Grogol Sel., Kby.
Lama, Kota
Jakarta Selatan,
Daerah Khusus
Ibukota Jakarta
12220
No store, online
only
Price 350.000 –
594.000
300.000 –
1.499.000 IDR
699.500,00 -
3.299.000,00
800.000 –
1.850.000
Promotion Website,
Facebook,
Instagram, E-
commerce,
Website,
Instagram,
involve in the
exhibition
Promotion
through online
media platforms,
involve in
Website,
Instagram,
involve in the
exhibition
19
Line, Promo,
endorsement,
involve in
Indonesian
exhibition
Indonesian
exhibition
20
CHAPTER IV
EXECUTION PLAN
4.1 Marketing Plan Executive Summary
The owner used promotion as a tool for the marketing plan. Promotion is the marketing term
used to describe all marketing communications activities Xymmer Batik uses this method
because nowadays people, specifically youth is tend to use the internet or social media rather
than mind to see the banner or the flyer. The owner also used the word of mouth method to
promote this business.
4.2 Segmentation, Targeting, Positioning
4.2.1 Segmentation
Table 4.1 Market Segmentation of Xymmer Batik
Geographic Area: Basically, we don’t have our own store, to maintain our budget.
But we put our products and sell it online all over Indonesia and across
Asia (Malaysia, Singapore, Japan) and Australia
Demographic Age: 17-25years old, 26-45 years old.
Gender: Female
Occupation: Students, Employee General, Entrepreneur, etc
Monthly Income: >1.000.000
Psychographic Life style : Concern and interest with fashion, quality of cloth
materials, culture & art
Personality: Attractive, Stunning, Active
Social class : middle class to high class
Behaviors Economic: Concerned with quality and the fashion enthusiast
Functionality: ready to wear for daily use
21
4.2.2 Targeting
The function of the targeting is to identify and analyze the segment in the market of the products,
determine the segments will become targets and Devise and implement positioning strategies
within each target. The main target of Xymmer Batik is the customers who are concerned about
fashion. Therefore, we put the unique selling point by using Batik as Indonesian traditional
textile and using premium material as the modification style. We believe that our professional
designer could make the customers feel comfortable and looks natural attractive when use our
products. Therefore, beside the Fashionista, we concern to the people who want to show their
inner beauty, and confident with whom they are. Our company has a strong believe that in every
product that we launch, we put hope and heart to create every single detail on it. Our concern is
to create the satisfaction and fulfill the needs of our consumers. In addition, we sure that our
product is qualified and could compete with the others.
4.2.3 Positioning
Positioning is a marketing concept that outlines what a business should do to market its product
to the customers. A good positioning strategy elevates the marketing efforts and helps a buyer
move from knowledge of a product to its purchase. Xymmer Batik has some concern in the
positioning as the most comfortable, fashionable and high quality product in Batik as a fashion
business. We believe that we could provide a stunning, youth fashion in the touch of Batik for all
customers
4.3 Estimation of Monthly Sales
Xymmer Batik is a clothing line who sells fashionable Batik clothes for girl to woman
customers. Clothes are a basic need for human being. Therefore, fashion industry exists to fulfill
the customer needs and reach the customer satisfaction. On the other hand, Consumer purchasing
is also strongly influenced by many factors. Clothing will be selected by the consumers,
according to what they need and they like, also according to the purchasing power. Below, is the
Xymmer Batik’s annual sales estimation:
22
Based on the data above, we could conclude that the estimation sales of Xymmer Batik will
always increase every month. Therefore, it shows that, Xymmer Batik always has a target to
reach for the sales. Then, the marketing strategy is applied in order to ensured and support the
sales.
4.4 Marketing Strategy
Xymmer Batik will use the seven “P” (7Ps) model of marketing mix as the marketing strategy
that consists of Product, Price, Process, Promotional Activities, Place, People and Physical
Environment.
23
4.4.1 Product
Products that are offered by Xymmer Batik are Indonesian Batik wardrobe with a modern and
fashionable style that suit for girl and woman. The products are clothes, short pants and long
pants with the unique name.
Customer satisfaction is the main goals for Xymmer Batik. Thus, Xymmer Batik concerned with
the quality of the products. Therefore the materials are highly selected by the best supplier and
there will be quality control from the staff of Xymmer Batik to make sure that the products are
good and in the perfect condition.
For the packaging, Xymmer Batik has the classy and original box from Pandanus. Therefore, this
packaging could be one of our uniqueness and differentiation with the competitors.
4.4.2 Price
The target of Xymmer Batik’s is the middle until high income people. Therefore, based on the
research and observation from the competitors, which are Oemah Etnik, Ikat Indonesia and
Sejauh Mata Memandang, Xymmer Batik decided to set the price from around IDR 350.000 until
IDR 594.000 (estimated price from year 1 to year 3). In Oemah Etnik, the cheapest around
IDR300.000 – IDR1.499.000 for wardrobe. In Ikat Indonesia the price for wardrobe are around
IDR 339.000 – IDR 1.259.000). For Sejauh Mata Memandang, the price for wardrobe around
IDR 800.000 – IDR 1.850.000
4.4.3 Process
The sales process of Xymmer Batik is based on the online, and there is no offline store. Our
Shop online 24/7 are available at our website www.xymmerbatik.com (the prototype of the
website, please check and others e-commerce platform such as Shopee, Tokopedia and
Bobobobo. Through the online business, the customer will get faster response and able to get the
notifications about their favorite products. Our customers also could review our product on our
platform and see the satisfaction review from other customers. Besides that, in our website and
the e-commerce platform Xymmer Batik will offer the customer with the happy and fast
shopping experience in order to create the customer satisfaction. In the other way, Xymmer Batik
will also provide several options of payment method for the local customers and customers
abroad.
24
4.4.4 Promotional Activities
A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. Product promotion is one of the necessities for
getting Xymmer Batik Brand in front of the public and attracting new customers. A strong set of
promotional strategies could help position of our company in a favorable light with not only
current customers but new ones as well. Therefore, promotion will be one of our concerns since
it also an element of the marketing mix (7p's)
1. Partnership with e-commerce
E-commerce refers to various online commercial activities focusing on commodity exchanges by
electronic means, internet in particular, by companies, factories, enterprises, industrial
undertakings and customers (Qhin, 2009). Nowadays, people are getting used to have an online
shopping experience. Therefore, many e-commerce and shopping platform offers the best deals
and offer big sales or many kinds of promotional activities.
Xymmer Batik will collaborate and partnership with trusted e-commerce platform such as
Lazada, Tokopedia, and Shopee to increase the company’s sales. That are top three of
Indonesia’s largest e-commerce platform (Australia, 2018)
2. Create an Official Website
Through the official website, it could be a tool for Xymmer Batik to get in touch with the
customers by giving the information about what’s going on in Xymmer Batik, promotions,
customer reviews and testimonials, and also about the fashion updates. This also has the purpose
as the marketing tools to increase the target sales and gain more customers.
Xymmer Batik website : www.xymmerbatik.com
Xymmer Batik website prototype : https://xymmerbatik.wixsite.com/xymmerbatik
3. Social Media
Social media are channels that introduce Xymmer Batik brand to people. It could be a new ways
to increase the visibility and make the company more recognizable to customers.
By presenting Xymmer products on multiple social networks, the potential users and customers
can become better acquainted with our product .This in one of the main benefits of social media.
Besides that, social media allow business to easily and quickly respond to customers’ comments,
25
questions and concerns and consumers to instantaneously receive help. Moreover, by answering
to consumers’ needs in public, businesses can show the quality of their service and a certain level
of transparency.
If people are unaware with our products, they won’t buy your products or be interested in our
products. Therefore, we need several social media to promote and increase our sales.
Xymmer Batik social media accounts are :
Instagram : @xymmerbatik
Line : @xymmerbatik
Facebook : Xymmerbatik
4. Event / Stan (Exhibition)
Xymmer Batik will join the exhibition or Bazzar twice a year, which are Inacraft (located in
Jakarta Convention Center, usually in March, and Gebyar Batik Muda Nusantara by Putra Putri
Batik (on October). The purpose is to contribute in the government event for Inacraft, and
contribute to support the biggest Batik festival through Gebyar Batik Muda Nusantara.
5. Endorsement
Nowadays, the KOL (Key Opinion Leader) such as celebrity endorse or fashion bloggers have a
big impact on the sales of a brand. People usually will buy the products based on the review from
them. Therefore, the endorsement could be a good way to promote and branding our products.
The responsibilities of the celebrity endorsement are to give the review, promote and encourage
people to buy Xymmer Batik’s products. Then, Xymmer Batik will post the existence of the
celebrity in the official website, page and social media.
6. Instagram Sponsored Advertisement
Instagram sponsored advertisement aims to encourage awareness, expand customer, and share
updates and information on the company to the viewers in an interactive way. Besides that, it
also gives convenience to be able to make what is called with a custom audience to reach out to
people who are already interacting with business in Xymmer Batik.
26
In addition, there is a feature to specify an about who wants to reach (Xymmer Batik potential
target market) with Instagram. The feature allows us to choose location, demographics, as well
as the interest of the user who viewed the advertisement of the company. This advertising
platform also will allow Xymmer Batik to save the audience that already created before, and for
use again at a later time, which would be great remember the exact audience that are used in a
particular campaign. In conclusion, Instagram sponsored ads can easily increase brand awareness
by using visual content such as images or videos and will be a suitable way to promote Xymmer
Batik.
4.4.5 Place
Xymmer Batik doesn’t have an offline store; therefore, we have a warehouse that is located in
Canggu area. That is a strategic location because that is one of the favorite place of tourist area.
In conclusion, it could make easier for the target market to visit the warehouse and make a deal
for the order. Besides that, in this area there are many hotels and guest house, that could be a
great opportunity to collaborate by putting our Look book there.
4.4.6 People
People have a big role and could be a main key for the business. Therefore, an organization or a
business needs to have a good standard and a clear job description in every role of the
employee’s position. To support that, Xymmer Batik will hire the employees who have skills and
abilities that are related to the company needs. The company structure and the detail of the
employee requirements could be seen in Chapter 8 as Organizational Planning.
4.4.7 Physical Evidence
Pyhsical evidence has a role as the way to optimize the marketing mix. In Xymmer Batik, the
tools needed to support the appearance of the products are through website and social media. The
appearance of our online store should be attractive and able to make our target market and
customer interest in our products. Besides that, our official website” www.xymmerbatik.com”,
Xymmer Batik website prototype “https://xymmerbatik.wixsite.com/xymmerbatik”, should be
user friendly and make the convenience of the online shoppers in searching for the desired
products. Therefore, Xymmer Batik also has a partnership with the others well-known e-
27
commerce that are already trusted such as Lazada, Tokopedia, and Shopee. In conclusion,
Xymmer Batik will prioritize customer satisfaction and easy to order in our online store.
4.5 Target of Sales Yearly
Table 4.3 Target Sales
28
Description Price Unit First Year Budget
Business Card 35,000 5 Box 175,000
Website Maintenance 500,000 12 6,000,000
Instagram Sponsored
Ads250,000 6 1,500,000
Look Book A5 25,000 120 3,000,000
Endorsment 1,400,000 6 8,400,000
Stand/Event 15,000,000 2 30,000,000
Total 49,075,000
Description Price Unit First Year Budget
Business Card 35,000 5 Box 175,000
Website/ domain
house1,000,000 1 1,000,000
Website Maintenance 500,000 12 6,000,000
Instagram Sponsored
Ads225,000 3 675,000
Look Book A5 25,000 120 3,000,000
Endorsment 1,000,000 6 6,000,000
Total 16,850,000
Description Price Unit First Year Budget
Business Card 35,000 5 Box 175,000
Website Maintenance 500,000 12 6,000,000
Instagram Sponsored
Ads225,000 6 1,350,000
Look Book A5 25,000 120 3,000,000
Endorsment 1,200,000 6 7,200,000
Total 17,725,000
4.6 Marketing Budget Table 4.4 Marketing Budget 1
st year
Table 4.5 Marketing Budget 2nd
year
Table 4.6 Marketing Budget 3rd
year
29
4.7 Implementation Xymmer batik will ensure that all of the promotional and marketing activities will work efficiently and effectively. Therefore, here is
the schedule for the implementation of Xymmer Batik marketing that will be done by the person in charge.
Activity 1 2 3 4 5 6 7 8 9 10 11 12
Week 1 2 3 4 1 2 3 4 1 2 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Partnership
with e-
commerce
Official
Website
Social
Media
Even/Stand
(exhibition)
Endorsemet
Sponsored
Ads
30
4.8 Production Planning
Our fashion designer will find out the product design for different styles every month. It could
consist of the theme of the style, the color, and the additional materials to combine with Batik.
After that, the design should be submitted to the CEO/Owner to get the approval. If the
CEO/Owner approved the design, so the next step is to contact the suppliers. For the Batik
materials, it needs to be suitable to the Xymmer Batik theme of the month, for the color and
pattern and need to be approved by the Fashion designer and the CEO/Owner. Then CEO/Owner
will make a deal for the price, quantity, and everything with the suppliers.
After all the materials for the products are available, Fashion designer will direct all tailors and
make sure that the product result could be done properly. After the products are done, the next
step is to put the label of Xymmer Batik on it. In this process, Fashion designer has the
responsibility to make sure that the production process is finished on time based on the estimated
date. The next step is the quality control and packaging that will be done by the staff. The staff
will deliver and take care about the shipment of all products based on the quantity of the orders.
In the end, Xymmer Batik will give the tracking number to the customers to make them able to
check the shipment status.
31
Table 4.7 Estimation of Annual Production Year 2019
Months Variant QTY Production Cost/pcs Total Production Total Production Cost/Months
Hotty Crop 80 Rp93,000 Rp7,440,000
Lollycool 100 Rp193,000 Rp19,300,000
Hotty Crop 150 Rp93,000 Rp13,950,000
Lollycool 120 Rp193,000 Rp23,160,000
Hotty Crop 160 Rp93,000 Rp14,880,000
Lollycool 120 Rp193,000 Rp23,160,000
Hotty Crop 160 Rp93,000 Rp14,880,000
Lollycool 130 Rp193,000 Rp25,090,000
Hotty Crop 180 Rp93,000 Rp16,740,000
Lollycool 140 Rp193,000 Rp27,020,000
Hotty Crop 200 Rp93,000 Rp18,600,000
Lollycool 140 Rp193,000 Rp27,020,000
Hotty Crop 210 Rp93,000 Rp19,530,000
Lollycool 150 Rp193,000 Rp28,950,000
Hotty Crop 230 Rp93,000 Rp21,390,000
Lollycool 150 Rp193,000 Rp28,950,000
Hotty Crop 220 Rp93,000 Rp20,460,000
Lollycool 160 Rp193,000 Rp30,880,000
Hotty Crop 250 Rp93,000 Rp23,250,000
Lollycool 170 Rp193,000 Rp32,810,000
Hotty Crop 250 Rp93,000 Rp23,250,000
Lollycool 190 Rp193,000 Rp36,670,000
Hotty Crop 300 Rp93,000 Rp27,900,000
Lollycool 250 Rp193,000 Rp48,250,000
4210 Rp573,530,000 Rp573,530,000
26,740,000
37,110,000
38,040,000
39,970,000
43,760,000
76,150,000
45,620,000
48,480,000
50,340,000
51,340,000
56,060,000
59,920,000
Total
December
January
February
March
April
May
June
July
August
September
October
November
32
Table 4.8 Estimation of Annual Production Year 2020
Months Variant QTY Price Total Production Total Production Cost/Months
Hotty Crop 100 Rp93,000 Rp9,300,000
Lollycool 100 Rp193,000 Rp19,300,000
Promo 50 Rp93,000 Rp4,650,000
Hotty Crop 120 Rp93,000 Rp11,160,000
Lollycool 120 Rp193,000 Rp23,160,000
Shootbunny 90 Rp109,000 Rp9,810,000
Hotty Crop 150 Rp93,000 Rp13,950,000
Lollycool 140 Rp193,000 Rp27,020,000
Shootbunny 110 Rp109,000 Rp11,990,000
Hotty Crop 150 Rp93,000 Rp13,950,000
Lollycool 150 Rp193,000 Rp28,950,000
Shootbunny 120 Rp109,000 Rp13,080,000
Hotty Crop 180 Rp93,000 Rp16,740,000
Lollycool 160 Rp193,000 Rp30,880,000
Shootbunny 130 Rp109,000 Rp14,170,000
Hotty Crop 200 Rp93,000 Rp18,600,000
Lollycool 170 Rp193,000 Rp32,810,000
Shootbunny 150 Rp109,000 Rp16,350,000
Hotty Crop 220 Rp93,000 Rp20,460,000
Lollycool 200 Rp193,000 Rp38,600,000
Shootbunny 150 Rp109,000 Rp16,350,000
Hotty Crop 240 Rp93,000 Rp22,320,000
Lollycool 220 Rp193,000 Rp42,460,000
Shootbunny 170 Rp109,000 Rp18,530,000
Hotty Crop 240 Rp93,000 Rp22,320,000
Lollycool 250 Rp193,000 Rp48,250,000
Shootbunny 200 Rp109,000 Rp21,800,000
Hotty Crop 300 Rp97,650 Rp29,295,000
Lollycool 300 Rp202,650 Rp60,795,000
Promo 50 Rp93,000 Rp4,650,000
Shootbunny 250 Rp109,000 Rp27,250,000
Hotty Crop 280 Rp93,000 Rp26,040,000
Lollycool 270 Rp193,000 Rp52,110,000
Shootbunny 250 Rp109,000 Rp27,250,000
Hotty Crop 350 Rp93,000 Rp32,550,000
Lollycool 300 Rp193,000 Rp57,900,000
Shootbunny 300 Rp109,000 Rp32,700,000
6930 Rp917,500,000 Rp917,500,000
Rp33,250,000
Rp44,130,000
Rp52,960,000
Rp55,980,000
April
May
December
November
June
July
August
September
October
January
February
March
Rp121,990,000
Rp105,400,000
Rp123,150,000
Rp61,790,000
Rp67,760,000
Rp75,410,000
Rp83,310,000
Rp92,370,000
*January, October Promotion Price=Hotty Crop price previous design
Total
33
Table 4.9 Estimation of Annual Production Year 2021
Months Variant QTY Price Total Production Total Production Cost/Months
Hotty Crop 100 Rp93,000 Rp9,300,000
Lollycool 100 Rp193,000 Rp19,300,000
Promo 50 Rp93,000 Rp4,650,000
Shootbunny 120 Rp109,000 Rp13,080,000
Hotty Crop 150 Rp93,000 Rp13,950,000
Lollycool 90 Rp193,000 Rp17,370,000
Shootbunny 160 Rp109,000 Rp17,440,000
Hotty Crop 140 Rp93,000 Rp13,020,000
Lollycool 110 Rp193,000 Rp21,230,000
Shootbunny 180 Rp109,000 Rp19,620,000
Hotty Crop 160 Rp93,000 Rp14,880,000
Lollycool 120 Rp193,000 Rp23,160,000
Shootbunny 200 Rp109,000 Rp21,800,000
Hotty Crop 180 Rp93,000 Rp16,740,000
Lollycool 130 Rp193,000 Rp25,090,000
Shootbunny 210 Rp109,000 Rp22,890,000
Hotty Crop 180 Rp93,000 Rp16,740,000
Lollycool 150 Rp193,000 Rp28,950,000
Shootbunny 220 Rp109,000 Rp23,980,000
Hotty Crop 210 Rp93,000 Rp19,530,000
Lollycool 200 Rp193,000 Rp38,600,000
Shootbunny 250 Rp109,000 Rp27,250,000
Hotty Crop 210 Rp93,000 Rp19,530,000
Lollycool 220 Rp193,000 Rp42,460,000
Shootbunny 250 Rp109,000 Rp27,250,000
Hotty Crop 210 Rp93,000 Rp19,530,000
Lollycool 230 Rp193,000 Rp44,390,000
Shootbunny 260 Rp109,000 Rp28,340,000
Hotty Crop 365 Rp93,000 Rp33,945,000
Lollycool 300 Rp193,000 Rp57,900,000
Promo 50 Rp93,000 Rp4,650,000
Shootbunny 310 Rp109,000 Rp33,790,000
Hotty Crop 250 Rp93,000 Rp23,250,000
Lollycool 220 Rp193,000 Rp42,460,000
Shootbunny 300 Rp109,000 Rp32,700,000
Hotty Crop 380 Rp93,000 Rp35,340,000
Lollycool 300 Rp193,000 Rp57,900,000
Shootbunny 310 Rp109,000 Rp33,790,000
7575 Rp965,795,000 Rp965,795,000
Rp46,330,000
Rp69,670,000
July
Rp85,380,000
February
Rp48,760,000
March
Rp53,870,000
April
Rp59,840,000
January
November
Rp98,410,000
December
Rp127,030,000
Total
August
Rp89,240,000
September
Rp92,260,000
October
Rp130,285,000
May
Rp64,720,000
June
34
4.8.1 Standard Operating Procedures
Standard operating procedure (SOP) has the goal to provide an instruction and explanation to all
personnel involved in the company. SOP could be as a tool of control and note that measuring
the quality, environment and occupational health and safety etc.
General procedures
1. Any production activities need to be done properly based on the instructions and the directions
that are already available in the rules and regulations. All of the organization members should
follow the standard of Xymmer Batik’s company.
2. All of the organization members will get the directions and will be educated based on their job
description clearly. Besides, there will be training and introduction to use the production tools in
a proper way.
3. If there is any issue, the person in charge should make a report to the CEO/Owner to get the
solution in advance.
35
4.8.2 Equipment / Materials
Table 4.10 Equipment/ Materials
Material Picture Quant
ity
How
Long
Price per
item
Total
CCTV
3 5 years 600,000 1,800,000
Water
dispenser
1 5 years 150,000 150,000
Sewing
Machine
3 10 years 1,800,000 5,400,000
Racking
storage
100x40x20
6 10 years 720,000 4,320,000
36
Table Set
(+12 chairs)
1 10 years 7,000,000 7,000,000
Computer
2 5 years 1,800,000 3,600,000
Scissors
4 5 years 55,000 220,000
Sewing
Thread
100
dozen 10 years 14,000 1,400,000
Sewing
Needle
5 pack
@24se
t @16
5 years 25,000 125,000
37
Total
12,164,00
0
4.8.3 Key Supplier
Table 4.10 Key Supplier
24,015,000
38
4.8.4 Flow of Production
Figure 4.1 Xymmer Batik Flow of Production
39
4.8.5 Store Layout
Figure 4.2 Store Layout
4.8.6 Quality Control
There are two types of quality control in the production process of Xymmer Batik:
1. Concurrent Control
Xymmer Batik will do the concurrent control to make sure that every production process will be
finished smoothly and reduce any error. For the example, Fashion designer will do and
coordination with the tailor during the production process. Besides that, Staff will do the
coordination with the tailor, if there is something wrong with the product and need to have some
reparation. Other than that, the staff will do the control and make sure the income materials from
the suppliers and the product result to the costumer is in a good quality and in a right amount.
2. Feedback Control
Meeting room
Materials
storage Xymmer Batik’s
Storage
Tailor
Staff Table
CEO Room
Rest
Room
Display Area
Pattern
Making
Cuting
area
Finance/
secretary
Marketing
Manager
Pattern
Designer
40
On the Xymmer Batik website, there will be a special space for the costumer to give their
testimonials. It has the purpose to evaluate the performance of Xymmer Batik, and as the tool to
know the customer satisfaction. Therefore, if on the e-commerce platform, there is space to put
the customer feedback and give a rate (with a star) to the company profile. Besides that, Xymmer
Batik will use all of the social media as a tool to check the customer satisfaction. All of this
activity will be done by the marketing.
4.9 Overall Operational Plan
Xymmer Batik is a fashion business which based on the online sales. As a new comer in
this business, Xymmer Batik will have some challenges where the products are easy to copy by
the others. Besides that, the challenge is the business in the same fields that already well known
before Xymmer Batik and will be the competitors of Xymmer Batik. Therefore, to overcome that
problem, Xymmer Batik is ready to operate and produce the products with the best quality to
reach customer satisfaction. Then, Xymmer Batik also will reach the target sales by the
marketing strategy and activities that will be done by the marketing manager. For the operational
plan, Xymmer Batik applied the system and structure to support the flow of the business.
4.9.1 Process Planning
Xymmer Batik needs to complete the milestone in order to start its operation plan as explained.
To cover the National and International market, several objectives needed by Xymmer Batik
with the purpose of expanding the business from the beginning until success. The objectives are
as follows:
1. Get enough money for the initial capital
Gain the capital is for the needs of the whole business in Xymmer Batik. The capital will be
allocated to execute the plan, and for further plan.
2. Permit and Legalization
In order to open a legal business, Xymmer Batik company needs to have Trade Business License
or SIUP (Surat Izin Usaha Perdagangan). Besides that, Xymmer Batik needs to have the
agreement for renting the building and sign for the contract with the building owner.
3. Employee recruitment
41
Manpower is the important part in the organization, therefore the CEO/Owner will be the one
who responsible to hire the employees based on the qualification standard of Xymmer Batik.
4. Search and build the partnership for the supplier
Supplier is the source of materials in order to run the production plan. Therefore, Xymmer Batik
will selectively choose the right supplier to cooperate with.
5. Run the project
Xymmer Batik runs the project by renting a building, buy the equipments and materials and other
facilities. In this part, CEO/Owner will be a decision maker and control the project and make
sure everything will be finished on time
6. Implement the marketing strategy
Marketing strategy has the purpose to create brand awareness to Xymmer Batik, and could be as
the main tool to reach the target sales.
7. Build the partnership with government, travel and tourism agencies, communities
The more connection/ channel that Xymmer Batik has will make it easier for Xymmer Batik to
promote and create brand awareness to the target market. Xymmer Batik will join the exhibition
that will be held by the government. Not only that, Xymmer Batik will make relationship with
the travel and tourism agencies as the promotional media for Xymmer Batik for the example to
put Xymmer Batik’s catalogue to their place. Besides, Xymmer Batik will expand the channel by
joining the communities and be active in order to get the respect from the people.
8. Xymmer Batik Opening
After all of the preparations are ready, there will be Xymmer Batik opening to launch the official
company and business to the market. Xymmer Batik will put the dedication and commitment to
run the business properly and excellent.
42
4.9.2 Operation Model and Procedures
1. The Input process consists of capital, materials, equipment, facilities, supplier, labor,
management, time.
2. Transformation process includes alteration, transportation, storages
3. Output is the outcome of Xymmer Batik which is the product of Xymmer Batik, profit
and customer satisfaction based on the customer Feedback.
43
4.9.3 Location Planning
Figure 4.4 Location of Xymmer Batik’s Warehouse
Xymmer Batik’s warehouse will be located in Jalan Raya Canggu, Badung, Bali 80351. Here are
the reason why Xymmer Batik rent this building:
1. Profitable Market Area
This area is one of the tourist favorite places in Bali. Therefore, this will be a good opportunity to
gain the target market, especially for the foreign customer when they pass our warehouse.
2. Easy to access
Xymmer
Batik
44
Xymmer Batik has a strategic location in the main road of Jalan Raya Canggu with a decent
quality of roads.
3. Visibility and Parking area
Xymmer Batik’s warehouse has enough space for parking and also a visible area so the facilities
could support the operation of Xymmer Batik.
4.9.4 Operations Strategy and Plan
Xymmer Batik has a goal to become a successful company. Therefore, here are the competitive
advantages of Xymmer Batik:
1. Collaboration with well-known fashion bloggers to create the brand awareness and influence
others to become fashionable with Xymmer Batik
2. Have an eager to reach beyond the annual sales target
3. Produce good quality product with the competitive price and based on customer needs to gain
the profit and customer satisfaction.
4. Easy to access for the customers.
Xymmer Batik expanding the business by putting the products not only on Xymmer Batik
websites, but also social media, endorsement and e-commerce platform. Xymmer Batik also
will join the exhibition to reach the target sales.
4.9.5 Company Operations
1. Purchasing
Purchasing will be done by Fashion designer with the approval of the CEO/Owner. The Fashion
designer has a responsibility to find the materials from the suppliers and ensure the availability
for every item. Besides that, fashion designer needs to coordinate with the staff and tailors to list
the items that need to be re-stocked and report it to the CEO/Owner.
2. Production Process
The Production process will be done by the tailors. Their responsibility is to process the raw
materials until it becomes the final product, with the label of Xymmer Batik. Therefore, after the
final of the products are done, it will be handover to the staff for quality control, packaging, and
shipment process.
45
4.9.6 Operation Budget
The Operation Budget has the purpose to help the business to prepare for the business budget and
reduce the over budget risk. Therefore, here are the estimation data for Xymmer Batik’s
operation Budget.
4.9.7 Operations Hour
Working Hours:
Date : Monday – Friday, Saturday
Time : 08.00 – 17.00 (break time at 12.00 – 13.00), 08.00 – 13.00
46
4.10 Organizational Planning
4.10.1 Company Structure and Job Description
Figure 4.5 Xymmer Batik Organizational Chart
A successful company along with the business goals will be achieved by the people who work
together as a team. People in the company such as the owner, also the employees need to have
clear job descriptions and responsibilities in order to perform their role perfectly.
Job descriptions and management structure act as the backbone of the organization. By having
company’s standard and qualifications jobs will be cohesive, reporting structures be aligned, and
all of the organization will run effectively. Therefore, Xymmer Batik’s employees are selected
based on qualifications standard and commitment to work in a team.
CEO Fashion Designer
Tailor
Finance staff &
secretary
Staff
Marketing
manager
47
Job Title: CEO/Owner
Working Hours:
Monday – Friday , Saturday
Time: 08.00 – 17.00 ( break time at 12.00 –
13.00) , 08.00 – 13.00
Reporting to: - Salary: IDR 5,000,000/month
Job Description:
- Create company’s vision, mission and
strategy
- Apply policies and principles for the
company
- Responsible to hire, fires, and leads the
company’s employee
- Developing solid group for the
organization
- Observe company's execution and
activities
- Sets the financial plan
- Make a deal with the suppliers
- Controls and direct the business team
- Realizing company’s opportunities and
weaknesses internal and externally
- As a decision maker for the company
- Drives profitability of the business
- Able to analyze trends of the fashion
- Encourage the team by giving motivation
Skills Needed:
- Good Leadership skill
- Good Management Skills
- Full commitment to the company
- Loyal
- Understand all kind financial
reports
- Has ability to think and operate
strategically
- Demonstrate leadership,
management and organizational
skills, including fairness and
impartiality and openness to new
ideas and information.
- The ability to work closely to the
team of the workers
- Able to lead and motivate the team
- Communicate effectively
48
Job Title: Marketing Manager
Working Hours:
Monday – Friday , Saturday
Time: 08.00 – 17.00 ( break time at 12.00 –
13.00) , 08.00 – 13.00
Reporting to: CEO/Owner Salary: IDR 4,000,000/month
Job Description:
- Persists in sales even in the face of
failure
- Make product knowledge readily
available for self and other sales
people through various resources
- Finds ways to sell products in the face
of a down market
- Researches client base to find new
types of customers and sells to them
accordingly
- Responsible to make and control
online marketing content and other
promotional activities
- Evaluate overall marketing strategy
- Follow up the customer satisfaction
through social media and website
- Analyze trends in markets, economy
and industry
Skills Needed:
- Good Leadership skill
- Fluent English written and verbal
communication skills
- Math Skills, Product Knowledge
- Creativity, Demonstrated Experience
and optimist
- Courteous
- Basic Computer Literacy
- Database Skills
- Business, Accounting, Marketing,
Finance, Target Market Analysis
- Presentation Skills
- Persistent
- Flexible
- Able to organize everything effectively
- The minimum has a bachelor degree in
management, accounting or other
related major.
49
Job Title: Finance staff and Secretary
Working Hours:
Monday – Friday , Saturday
Time: 08.00 – 17.00 ( break time at 12.00 –
13.00) , 08.00 – 13.00
Reporting to: CEO/Owner Salary: IDR 4,000,000/month
Job Description:
- Managing budgetary planning
- Monitoring and interpreting cash
flows
- Developing financial management that
minimal financial risk
- Formulating strategic and long term
business term
- Analyze the change and advising
accordingly
- Arrange meetings and make report
compilation
- Undertaking research into pricing,
competitors and factors affecting
performance
Skills Needed:
- Knowledge of financial systems and
procedures
- Ability to prioritize, meet deadlines and
work calmly under pressure
- Good literacy, numeracy and IT skills
- Project management skills
- Attention to detail
- Able to manage pressure and to
prioritise work
- Ability to manage time effectively and
work with the deadlines
- The minimum has a bachelor degree in
finance,economics,or business
administration
50
Job Title: Fashion designer
Working Hours:
Monday – Friday , Saturday
Time: 08.00 – 17.00 ( break time at 12.00 –
13.00) , 08.00 – 13.00
Reporting to: CEO/Owner Salary: IDR 3.800,000/month
Job Description:
- Create/visualize ideas and produce
designs by hand or using computer
programs design helper
- Responsible for sourcing and
determine the product materials also
make sure it has a good quality
product standard
- Developing the concept of a collection
with an attractive design and report it
to the CEO
- Analyze trend of the fashion
- Make an analysis of fast and slow
product moving
- Find out the suppliers
- Do follow up and negotiations with
suppliers
- Working out the price cost for
production
- Keep an eye on production to conform
with the planning and design.
Skills Needed:
- Good communication and negotiation
skill
- Well organized, detail, fast learned and
result oriented
- Have the capability to operate design
software (Adobe Photoshop. Adobe
Illustrator, Corel Draw, etc,)
- Creative and has an entrepreneurial
spirit to compete with the market
- Knowledgeable and update with
current fashion trends
- Could work individually or in a team
- Technical skills in areas such as pattern
cutting, grading and garment
construction
- An eye for color, pattern and materials
for the production
- The minimum has a diploma/bachelor
degree from a design background
51
4.10.2 Salary and Compensation System
Xymmer Batik is located in Canggu, Bali. Xymmer Batik’s salary and compensation system are
set based on rules form Ministry of Labor in Indonesia and using the scale from Bali’s minimum
wage rate. In 2018 this year, Bali’s minimum wage is IDR 2.127.157, so every employee will be
Job Title: Staff ( Male )
Working Hours:
Monday – Friday , Saturday
Time: 08.00 – 17.00 ( break time at 12.00 –
13.00) , 08.00 – 13.00
Reporting to: CEO/ Owner
Coordination to : the tailor
Salary: IDR 2,000,000/month
Job Description:
- Check the quality of the products before
packing or as the quality controller
- Make the list of data for the income
equipment or materials from the suppliers
- Find out how to control the problem in
production
- Responsible for packing and arrange
shipment to the buyer
- Responsible to check the in and out of all
the products amount ( such as the input
amount of the material from the
supliers,the inventory, and the amount of
products that ready to send while make
sure the amount is correct based on the
order)
- Followup production based on timeline
Skills Needed:
- Responsible
- Honest
- Basic Computer Literacy
- Multitasking and able to work
underpressure
- Basic understanding of production
process
- Able to coordinate with parties that
concerned about a problem of
Quality
- Candidate must possess at least a
SMU, any field
52
paid with lowest total amount of money same as Bali’s minimum wage. Salary and
compensation system for the employees will be paid based on their position. Besides that,
Xymmer Batik gives Tunjangan Hari Raya (THR) in the Hari Raya day because it is the culture
in Indonesia that would be given every year in June. More detail about Xymmer Batik’s salary
system could be viewed in Table 8.1
Table 4.14 Employee Salary
4.10.3 Code of Conduct (Rules and Regulations)
Code of Conduct can be a strategy to seek the way out over problems that appear related to
business practices. The purpose of Xymmer Batik’s rules and regulation are to create a great
company culture, discipline and good working environment with a great standard of employees.
The sanction will be given to the employee who disobey the rules, such as warning letter,
disciplinary procedure or will cause the employee fired from the company. Below are the list of
Xymmer Batik’s Code of Conduct, these codes of conduct are obligated and applied to all of the
employees.
1. Every employee should follow the law and regulation of the Indonesian Government.
Any activity which against the law and regulation of Indonesian Government is prohibited
2. The employees are prohibited to duplicate or give any keys, data, and property of the
company to other parties without any approval from the owner.
3. Employees should be professional and responsible during the working hours. Personal
business is not allowed unless it has the approval of the CEO/Owner and in terms of
emergencies
4. Disciplinary procedures will be given to all employees who has too many absences, come
late to work and leaving work without permission.
Job Title Qty Salary Total/Month Year + THR Total
CEO 1 5,000,000Rp 5,000,000Rp 13 65,000,000Rp
Marketing Manager 1 4,000,000Rp 4,000,000Rp 13 52,000,000Rp
Finance staff & secretary 1 4,000,000Rp 4,000,000Rp 13 52,000,000Rp
Desainer 1 3,800,000Rp 3,800,000Rp 13 49,400,000Rp
Tailor 3 2,500,000Rp 2,500,000Rp 13 32,500,000Rp
Staff 1 2,000,000Rp 2,000,000Rp 13 26,000,000Rp
Total 8 21,300,000Rp 13 276,900,000Rp
53
5. Employees are not allowed to do the activity such as sleeping, slacking, and avoiding task
and responsibilities. If those kind of activities continued or get caught, the employee will get the
sanction.
6. Sanction will be given to employee who leave work activities or do other business for
personal gain or outside of the company without permission during the working hours
7. Employees should keep the company's assets and use them efficiently and not use it for
personal or outside business interests
8. All employees are required to be at the working place in the working hours.Any
avoidance will cause a disciplinary procedure
9. To maintain a healthy working environment,the employee under medication is required to
give any report to CEO/ Owner. It has the purpose to keep all of the employee could perform
their role perfectly
10. Employees should have good manners and behave politely toward costumers, superiors
and fellow employees
11. Employees of Xymmer Batik should be free from drug abuse and alcohol. The team
members were banned for abusing the use, possession, distribution and the trade of narcotics
and illegal drugs (psychotropic) as well as misuse of Liquor (Liquor) because it can potentially
inflict an accident work, degrade the performance standards, or ruin the reputation of the
company
12. Employees have a right to take one day off in every month. The Employees are not
allowed to take a same day day off as another employee.
54
CHAPTER V
FINANCIAL PLAN
5.1 Sources and Uses of Fund Statement In purpose to establish the business, Xymmer Batik will earn some capitals by using the owner
cash investment and also from the angel investor. Angel investor is individual private investors
who provide start-up funding for entrepreneurial company, as family, or friends.
Table 5.1 Sources
Sources Amount
Owner Cash Investment Rp. 200.000.000
Angel Investor Rp. 300.000.000
Total Rp. 500.000.000
5.2 Assumption Sheet
The key assumptions of Xymmer Batik are as follows:
5.2.1 General (Assumptions)
1. Fashion industry is the Top 3, highest position total export product which is 7, 77% with a
total export value of US $251 million (based on UNCTAD and UN Comtrade 2013).
2. Fashion industry is the Top 3 of the economic growth in the creative economy (Source: Badan
Pusat Statistic 2013)
3. Number of people who knows Batik increase every year
5.2.2 Financial Statements (Assumption)
1. The product price of Xymmer Batik will increase 10% every year
2. The salary of each member in Xymmer Batik will increase 10% every year and in the 6th
month will be assumed as Hari Raya. Therefore, there will be a bonus for every employee
(Tunjangan Hari Raya)
3. Depreciation rate divided into 5 years and 10 years depreciation for the assets.
55
4. Government rules Chapter 4 verse 2 number 46 year 2013 states that company which has
gross sales less than IDR 4,800,000,000 a year has to pay tax 1% for the government.
56
5.3 Cash Flow
Table 5.2 Cash Flow for January – December 2019
Description Pre Operation January February March April May June July August September October November December Total
Cash on Hand - 373,810,000 393,545,000 435,135,000 480,795,000 527,525,000 583,240,000 623,020,000 687,740,000 757,600,000 828,735,000 908,875,000 995,655,000
Cash In
Equity 500,000,000 500,000,000
Product Sales 73,000,000 106,500,000 110,000,000 114,500,000 126,000,000 133,000,000 141,000,000 148,000,000 149,000,000 164,000,000 173,000,000 217,500,000 1,655,500,000
Services Sales 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Cash In 500,000,000 73,000,000 106,500,000 110,000,000 114,500,000 126,000,000 133,000,000 141,000,000 148,000,000 149,000,000 164,000,000 173,000,000 217,500,000 2,155,500,000
Cash out
Cost of Goods
Sold26,740,000 37,110,000 38,040,000 39,970,000 43,760,000 45,620,000 48,480,000 50,340,000 51,340,000 56,060,000 59,920,000 76,150,000 573,530,000
Rent Building 95,000,000 95,000,000
Transportation 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 18,000,000
Administrative 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 12,000,000
Electricity &
Water1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 12,000,000
Telephone 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 12,000,000
Maintainance 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 6,000,000
Marketing 7,175,000 225,000 1,500,000 1,500,000 225,000 1,500,000 1,500,000 225,000 1,500,000 1,500,000 16,850,000
Salaries 21,300,000 21,300,000 21,300,000 21,300,000 21,300,000 42,600,000 21,300,000 21,300,000 21,300,000 21,300,000 21,300,000 21,300,000 276,900,000
Equipment 24,015,000 24,015,000
Tax (1%) 6,302,290 6,302,290
Total Cash Out 126,190,000 53,265,000 64,910,000 64,340,000 67,770,000 70,285,000 93,220,000 76,280,000 78,140,000 77,865,000 83,860,000 86,220,000 110,252,290 1,052,597,290
Cash
Surplus/Defisit373,810,000 19,735,000 41,590,000 45,660,000 46,730,000 55,715,000 39,780,000 64,720,000 69,860,000 71,135,000 80,140,000 86,780,000 107,247,710 1,102,902,710
Beginning Cash
Balance - 373,810,000 393,545,000 435,135,000 480,795,000 527,525,000 583,240,000 623,020,000 687,740,000 757,600,000 828,735,000 908,875,000 995,655,000
Ending Cash
Balance 373,810,000 393,545,000 435,135,000 480,795,000 527,525,000 583,240,000 623,020,000 687,740,000 757,600,000 828,735,000 908,875,000 995,655,000 1,102,902,710 1,102,902,710
57
Table 5.3 Cash Flow for January – December 2020
Description January February March April May June July August September October November December Total
Cash on Hand 1,102,902,710 1,038,472,710 1,096,862,710 1,172,447,710 1,254,387,710 1,348,592,710 1,433,472,710 1,555,257,710 1,694,167,710 1,846,442,710 1,980,872,710 2,160,417,710 1,102,902,710
Cash In
Equity 0 0
Product Sales 95,500,000 132,600,000 160,050,000 168,000,000 187,500,000 206,150,000 228,700,000 252,300,000 276,150,000 286,500,000 316,450,000 373,250,000 2,683,150,000
Services Sales 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Cash In 1,198,402,710 132,600,000 160,050,000 168,000,000 187,500,000 206,150,000 228,700,000 252,300,000 276,150,000 286,500,000 316,450,000 373,250,000 3,786,052,710
Cash out
Cost of Goods
Sold33,250,000 44,130,000 52,960,000 55,980,000 61,790,000 67,760,000 75,410,000 83,310,000
92370000121,990,000 105,400,000 123,150,000 917,500,000
Rent Building 95,000,000 95,000,000
Transportation 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 21,600,000
Administrative 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 12,000,000
Electricity &
Water1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 14,400,000
Telephone 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 16,800,000
Maintainance 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 6,000,000
Marketing 2,350,000 750,000 2,175,000 750,000 2,175,000 750,000 2,175,000 750,000 2,175,000 750,000 2,175,000 750,000 17,725,000
Salaries 23,430,000 23,430,000 23,430,000 23,430,000 23,430,000 46,860,000 23,430,000 23,430,000 23,430,000 23,430,000 23,430,000 23,430,000 304,590,000
Equipment 0
Tax (1%) 127,454,400 127,454,400
Total Cash Out 159,930,000 74,210,000 84,465,000 86,060,000 93,295,000 121,270,000 106,915,000 113,390,000 123,875,000 152,070,000 136,905,000 280,684,400 1,533,069,400
Cash
Surplus/Defisit1,038,472,710 58,390,000 75,585,000 81,940,000 94,205,000 84,880,000 121,785,000 138,910,000 152,275,000 134,430,000 179,545,000 92,565,600 2,252,983,310
Beginning Cash
Balance1,102,902,710 1,038,472,710 1,096,862,710 1,172,447,710 1,254,387,710 1,348,592,710 1,433,472,710 1,555,257,710 1,694,167,710 1,846,442,710 1,980,872,710 2,160,417,710
Ending Cash
Balance1,038,472,710 1,096,862,710 1,172,447,710 1,254,387,710 1,348,592,710 1,433,472,710 1,555,257,710 1,694,167,710 1,846,442,710 1,980,872,710 2,160,417,710 2,252,983,310 2,252,983,310
58
Table 5.4 Cash Flow for January – December 2021
Description January February March April May June July August September October November December Total
Cash on Hand 2,252,983,310 2,234,905,310 2,333,782,310 2,440,359,310 2,549,996,310 2,686,883,310 2,810,177,310 2,996,244,310 3,191,981,310 3,392,588,310 3,602,210,310 3,823,607,310 2,252,983,310
Cash In
Equity 0
Product Sales 157,800,000 180,360,000 194,820,000 217,200,000 235,980,000 251,460,000 305,820,000 317,700,000 327,240,000 387,630,000 354,180,000 465,360,000 3,395,550,000
Services Sales 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Cash In 2,410,783,310 180,360,000 194,820,000 217,200,000 235,980,000 251,460,000 305,820,000 317,700,000 327,240,000 387,630,000 354,180,000 465,360,000 5,648,533,310
Cash out
Cost of Goods Sold 46,330,000 48,760,000 53,870,000 59,840,000 64,720,000 69,670,000 85,380,000 89,240,000 92260000 130,285,000 98,410,000 127,030,000 965,795,000
Rent Building 95,000,000 95,000,000
Transportation 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 24,000,000
Administrative 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 12,000,000
Electricity & Water 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 14,400,000
Telephone 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 18,000,000
Maintainance 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 6,000,000
Marketing 2,575,000 750,000 2,400,000 15,750,000 2,400,000 750,000 2,400,000 750,000 2,400,000 15,750,000 2,400,000 15,750,000 64,075,000
Salaries 25,773,000 25,773,000 25,773,000 25,773,000 25,773,000 51,546,000 25,773,000 25,773,000 25,773,000 25,773,000 25,773,000 25,773,000 335,049,000
Equipment 0
Tax (1%) 185,824,000 185,824,000
Total Cash Out 175,878,000 81,483,000 88,243,000 107,563,000 99,093,000 128,166,000 119,753,000 121,963,000 126,633,000 178,008,000 132,783,000 360,577,000 1,720,143,000
Cash Surplus/Defisit 2,234,905,310 98,877,000 106,577,000 109,637,000 136,887,000 123,294,000 186,067,000 195,737,000 200,607,000 209,622,000 221,397,000 104,783,000 3,928,390,310
Beginning Cash Balance 2,252,983,310 2,234,905,310 2,333,782,310 2,440,359,310 2,549,996,310 2,686,883,310 2,810,177,310 2,996,244,310 3,191,981,310 3,392,588,310 3,602,210,310 3,823,607,310
Ending Cash Balance 2,234,905,310 2,333,782,310 2,440,359,310 2,549,996,310 2,686,883,310 2,810,177,310 2,996,244,310 3,191,981,310 3,392,588,310 3,602,210,310 3,823,607,310 3,928,390,310 3,928,390,310
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Description Nominal Fixed Cost Variable Cost
Cost of Goods Sold 573,530,000Rp 573,530,000Rp
Rent Building 95,000,000Rp 95,000,000Rp
Transportation 18,000,000Rp 18,000,000Rp
Administrative 12,000,000Rp 12,000,000Rp
Electricity & Water 12,000,000Rp 12,000,000Rp
Telephone 12,000,000Rp 12,000,000Rp
Maintainance 6,000,000Rp 6,000,000Rp
Marketing 16,850,000Rp 16,850,000Rp
Salaries 276,900,000Rp 276,900,000Rp
Equipment 24,015,000Rp 24,015,000Rp
Total 401,915,000Rp 644,380,000Rp
5.4 Break Even Analysis
Table 5.4 Xymmer Batik’s Expenses
Breakeven point on Unit:
Note:
Fixed cost = 401.915.000
Variable cost/unit= 644.380.000/4210
= 153060
Sales Price/unit = 175000
= 18. 319 unit
60
= 5 months
In order to reach the monthly break- even point, the payback period of the investment is 5
months. The Break-even point of the transaction is a 18.319 unit product.
5.5 Income Statement
Description 2019 2020 2021
Sales
Product Sales 1,655,500,000Rp 2,683,150,000Rp 3,395,550,000Rp
Total Sales Income 1,655,500,000Rp 2,683,150,000Rp 3,395,550,000Rp
COGS 573,530,000Rp 917,500,000Rp 965,795,000Rp
Gross Profit 1,081,970,000Rp 1,765,650,000Rp 2,429,755,000Rp
Expenses
Rent Building 95,000,000Rp 95,000,000Rp 95,000,000Rp
Transportation 18,000,000Rp 21,600,000Rp 24,000,000Rp
Administrative 12,000,000Rp 12,000,000Rp 12,000,000Rp
Electricity & Water 12,000,000Rp 14,400,000Rp 14,400,000Rp
Telephone 12,000,000Rp 16,800,000Rp 18,000,000Rp
Maintainance 6,000,000Rp 6,000,000Rp 6,000,000Rp
Marketing 16,850,000Rp 17,725,000Rp 64,075,000Rp
Salaries 276,900,000Rp 304,590,000Rp 335,049,000Rp
Depreciation Of Equipment 2,991,000Rp 2,991,000Rp 2,991,000Rp
Total Expenses 451,741,000Rp 491,106,000Rp 571,515,000Rp
Earning Before Interest & Taxes 630,229,000Rp 1,274,544,000Rp 1,858,240,000Rp
Taxes (1%) 6,302,290Rp 127,454,400Rp 185,824,000Rp
Nett Profit 623,926,710Rp 1,147,089,600Rp 1,672,416,000Rp
INCOME STATEMENT
Xymmer Batik
2019-2021
61
5.6 Balance Sheet
Description 2019 2020 2021
Asset
Cash 1,102,902,710Rp 2,252,983,310Rp 3,928,390,310Rp
Total Current Asset 1,102,902,710Rp 2,252,983,310Rp 3,928,390,310Rp
Fixed Asset
Equipment 24,015,000Rp 21,024,000Rp 18,033,000Rp
Depreciation Of Equipment (2,991,000)Rp (2,991,000)Rp (2,991,000)Rp
Total Fixed Asset 21,024,000Rp 18,033,000Rp 15,042,000Rp
Total Asset 1,123,926,710Rp 2,271,016,310Rp 3,943,432,310Rp
Liabilities
Current liabilities -Rp
Account Payable -Rp
Total Current Liabilities -Rp
Long Term Liabilities -Rp
Bank Loans Payable -Rp
Total Long Term Liabilities -Rp
Total Liabilities -Rp
Equity
Capital 500,000,000Rp -Rp -Rp
Retained Earnings -Rp 1,123,926,710Rp 2,271,016,310Rp
Current Year Earnings 623,926,710Rp 1,147,089,600Rp 1,672,416,000Rp
Total Equity 1,123,926,710Rp 2,271,016,310Rp 3,943,432,310Rp
Balance Sheet
Xymmer Batik
2019-2021
62
5.7 Ratio Analysis
Profitability Ratios Year 1 Year 2 Year 3
Return on Asset (ROA) =
net income / total asset56% 51% 42%
Return on Sales (ROS) =
Net Income/Net Sales38% 43% 49%
Return on Investment
(ROI) = Net
Income/Investment
125% 229% 334%
Nett Income 623,926,710Rp 1,147,089,600Rp 1,672,416,000Rp
Total Asset 1,123,926,710Rp 2,271,016,310Rp 3,943,432,310Rp
Nett Sales 1,655,500,000Rp 2,683,150,000Rp 3,395,550,000Rp
63
CHAPTER VI
MILESTONE
Table 6.1 Xymmer Batik’s Milestone
64
CHAPTER VII
ASSESMENT OF RISK AND CONTIGENCY PLAN
7.1 Possibility Risk
Understanding the risk possibility and knowing how to handle the problem is one of the
important things to be done before the business established. Therefore, a successful business is a
business that is able to anticipate, control and manage every potential risk. In Xymmer Batik, the
risks are as follows:
1. Loss of Sales
Every company has their own goals to achieve their target market and increase the sales in order
to develop their business. But, sometimes external factor such as bad economy, or the changing
rules of the government have a possibility to give the risk for the business. As a result, the sales
of the business could be low or loss of profit
2. Higher Production Cost
In every stage of the production process requires a fee. There are some costs that cannot be
avoided by companies, such as raw materials, auxiliary materials, labor, and other production
costs. However, in the production process, the cost used is often higher than the standard costs
budgeted earlier. Therefore, the company should do the cost-efficiency so that the inevitable cost
of excess production. Therefore the company should do the cost efficiency in order to avoid
excess production costs and maximize the profit.
3. Defected Product
An error during the production process could cause the defected product. For the example
stitching clothes that are not neat, wrong cut pattern, negligence in putting the additional
accessories on the clothes and much more. This negligence could be detrimental to the company
4. Man Power Problem
In every business, man power has a big impact in the quality of the company. The main power
problem in the business is caused by the employees of the company. Manpower problem could
happen because of several reasons such as unproductive employee, unqualified human resources
or from lack of experience employee. This could affect the company by increasing the
65
production cost with lesser profit. In the other case, the employee could strike and make the
production process stop. The worst case, it could cause the business out of manpower and has to
close the business for a few days.
5. Fraud or Corruption
Fraud or corruption in the company could create an unhealthy working environment. Fraud could
become from an employee stealing inventory from Xymmer Batik company, or even replace and
manipulate financial data for the personal business. It could cause the bad effects for the
company, such as a bad habit or a dishonesty of the employee, bad reputation of the employee
and the whole company, and make the company has no money or asset to develop
6. Increased Tax
The government has the authority or right to increase the tax in the country. It could depend on
the country’s situation and policy. Xymmer Batik need to obey the country’s policy,and as the
result, it could affect the profit in the business become less or decreasing
7. Problem from Government
Government has the power to make rules and regulation in the business. Xymmer Batik has a
possibility to get the problem from the government if it doesn’t obey the rules and could affect
the existence of the business or could be banned
8. Lack of Money
Running and developing the business need a good flow of money in order to support the
operational cost, marketing cost and any other expenses. Besides that, unexpectedly, there could
be the possibility of robbery in a sudden time. Therefore, there could be a possibility when
business out of money
66
7.2 Contingency Planning
The contingency plan is a step in anticipation that has been prepared and will be executed if a
condition is not expected to occur and interfere with normal operations. Although planning
would not eliminate the risk, at least planning could help the CEO or owner to take a decision or
response efficiently and minimize risk. Contingency plan aims to maximize the speed of
recovery against the troubled business, keeping the image and business reputation, minimizing
data loss, minimize critical decision-making in critical times, and certainly pressing the number
of losses (loss) in case of something not expected. In this table below, there are contingency
plans to handle the risk which has been explained before.
Table 7.1 Xymmer Batik Contingency Plan
Risk Contingency Plan
Loss of Sales
The contingency plan of Xymer Batik is by increase the marketing
activity to attract more customers and sales. For the example by
endorsement, e-word of mouth, give promo or discount, and many more
High Production Cost
Xymmer Batik will evaluate all the production process and make sure
that all run efficiently. For the example: avoid the wasting of time, raw
materials, and use the money wisely. The alternative way will be
looking for other suppliers that offer the same quality with the lower
price. Increase the product price might be happened based on the
situation and the consideration.
Defected Product
The staff has a responsibility to do the quality control before the product
send to the costumers. If there are defected products, so it should be
separated and we will sell it with the lower price
67
Man Power Problem
In order to make a conducive working atmosphere, the Xymmer Batik
company will give the training for the employee to maximize their job
performance. Besides that, to make the honesty and healthy working
environment, the company will spread the questionnaire for the
employee. It has the purpose to give the advice or suggestion for the
business overall, and builds the motivation to all employees. In the other
way Xymmer Batik will also give a special appreciation for the
employee who has good achievements.
Fraud and Corruption
The owner will learn more about the financial knowledge, and
responsible to check and evaluate the financial report from the Xymmer
Batik’s finance.
Besides that, the CEO/Owner will track the sales and responsible to
ensure the validity of every data
Increased Tax
To overcome this problem, Xymmer Batik will increase the sales and
reach the new target. Besides that, Xymmer Batik will not increase the
price, but press the production cost efficiently. In the worst case,
Xymmer Batik could increase the price while adds another value to the
products ( this will happen in some consideration based on the situation)
Problem From
Government
To make this business run smoothly, Xymmer Batik will obey all rules
and regulations from the government. Xymmer Batik will make sure
that everything is in line or properly done with all of the procedures
such as paying taxes, making permit to open business and many more.
Lack of Money
Xymmer Batik will ask for a loan from the bank or the owner’s
68
colleagues
69
CHAPTER VIII
EXIT STRATEGY
An exit strategy is the company's plan to take off the investment to make profit, or encourage
business owners reduce and even eliminate ownership. This step could be an unexpected
challenge for the business. Managing a successful exit from their business is one of the most
important events in their business lives. It shows that the business is working towards a clear
and specific goal, something that demonstrates the maturity of the business which is often
missing from many entrepreneurs. Therefore, the best way to have the successful exit strategy is
by planning it well (Mills, 2015). Xymmer Batik’s exit strategy is by passing the business to
someone the owner trust. For this, the Xymmer Batik owner wants to pass over the business to
the next generation or the family. This way of exit strategy is the master plan of Xymmer Batik,
with so,e considerations. According to Peter G. Christman, the master plan offers timeless
wisdom, practical advice and enduring strategy to meet the needs and challenges of a new
generation of business owner, who want to be prepared ot exit their businesses (Christman,
2015).
Here are the consideration:
8.1 Xymmer Batik will have the continuity of the business
Xymmer Batik’s owner has the ambitions to preserve Indonesian culture, which is Batik in a
modern way and make other people accept and proud to use it. Therefore, by passing over,
means that the owner has the willingness to let the others that she trust continue the business
with the same vision and mission. Besides that, this could be a good way to keep the loyal
consumers with the existence of Xymmer Batik.
8.2 The Weakness Of The Handing Over Of Business
1. Have a risk
Every decision with the Exit strategy of the business will have pro and contra or positive sides
and negative sides. By passing over to someone who already trusted is good, but trust is not
enough. The person should have a capability, willing to learn and analyze the problem of the
70
business. Besides that he/she needs to be able to be the decision maker or problem solver. Not
only that, the person need to have the desire to manage the business well. Xymmer Batik’s owner
will be the guidance, the advisor and the controller to make sure that the business run well. If the
person doesn’t have the standard qualification, therefore it could create the risk of the business.
2. Jealousy and gap between family members or internal company
The contra possibility could be the jealousy between family members or the internal company.
Therefore, Xymmer Batik’s owner will make sure to providing confidence and understanding the
wisdom for employees, to keep it could develop the performance of the company has switched
ownership. Besides that, with a system that has been running automatically, it will make the
company for the company to focus with the business growth and helping ease new manager.
Inconclusion, Xymmer Batik’s owner will have the coordination with the expert advisor and the
final advisor to decide the more details of the exit strategy with the more objective view.
Therefore, Xymmer Batik could get the best outcome and ensure that every transition could go
well.
71
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APPENDIX
A. Interview Questions
1. Hello Miss, how are you? First of all I want to ask you. Do you know Batik?
2. Basically, I would like to sell Batik for a woman in a fashionable style, do you want to take a
look?
3. What is your first impression of the products? I would love to sell it online
4. What will be your priority when you want to buy clothes?
4. Where do you usually buy clothes?
5. What is your concern when you want to buy in online based? What will make you trust the
online shop?
6. What is the price range or your budget for buying clothes?
7. Which one do you prefer for the clothes packaging? Do you think with the box or with the
cotton bag? Or what will you like?
To gain the information from the target market, Xymmer Batik does the research through
interviews by chatting with ten (10) women. The interview is divided into two, which are for the
foreigner and for the local people.
76
Interview with the Foreigners
Participant Background:
Name : Flavia Nambooze
Age : 30
Country Origin : Uganda
Background : Exchange student from Darmasiswa program
77
78
Interview with the Foreigners
Participant Background:
Name : Kunitani Yuka
Age : 28
Country Origin : Osaka, Japan
Background : Self employed
79
Interview with the Foreigners
Participant Background:
Name : Mimi Nguyen
Age : 20
Country Origin : Vietnam live in Melbourne
Background : The University of Melbourne
80
81
Interview with the Foreigners
Participant Background:
Name : Emmy Lee
Age : 40
Country Origin : Queensland, Australia
Background : Entrepreneur, Styling teacher at TAFE & Owner of Hoa's Angel Charity
Foundation
82
Interview with the Foreigners
Participant Background:
Name : Hannah Louise
Age : 37
Country Origin : Australia
Background : Former Sales/Marketing Consultant at My Designer Wardrobe
83
Interview with the Local
Participant Background:
Name : Jessica Florencia
Age : 21
Origin : Bekasi
Background : Communication Student of President University 2015
84
Interview with the Local
Participant Background:
Name : Jovita Wibowo
Age : 21
Origin : Kudus
Background : Business Administration Student Batch 2015 of President University
85
Interview with the Local
Participant Background:
Name : Bella Arista
Age : 21
Origin : Bangka
Background : Communication Student of President University 2015
86
Interview with the Local
Participant Background:
Name : Sarah Aprillia Tatuhey
Age : 21
Origin : Jakarta
Background : International Business Student Batch 2015 Of Bina Nusantara
University
87
Interview with the Local
Participant Background:
Name : Frisca Nazhiera
Age : 21
Origin : Aceh
Background : International Relations Student of President University 2015
88
Appendix
B. Xymmer Batik Product
89
Appendix
C. Xymmer Batik Packaging
Made by the local artisan in Bali, and using the natural material from Pandanus (Pandan).
Therefore, the packaging of Xymmer Batik will not only looks classic and original, but also
looks exclusive. There will be two sizes for the Box which is normal and large.
90
Appendix
D. Xymmer Batik Website
91
Appendix
E. Xymmer Batik Business Model Canvas
