Final ent

J&J ENTERPRISE

2.0 INTRODUCTION

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J&J ENTERPRISE

2.0 INTRODUCTION

Joy & Juicy Enterprise plan establish as a partnership business, involve of five people, and state of location at BANDAR SUNWAY. Date of business commencement on 31st January 2011 launch at BANDAR SUNWAY.

VISION

For our vision to gain high profit and revenue generated by its sales cover all expenditure to set up business. Also, provide good service with quality standards at reasonable or affordable price to the customer can pledge customers’ confidence and loyalty.

MISSION

Mission of our organization are to achieve high growth and increase our profit with enhance productivity. Other than that we are also want to create brand when established and open another branch at everywhere.

OBJECTIVE

Objective of our organization to make customer satisfaction with our good service and quality product. Then, to boast customer confident and create loyalty. Also, attract more customers and build a long good relationship with them.

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2.1 FACTOR SELECTING PROPOSED

1. Promote local fruit

This business is a one way that can introduce promotes a local fruit to the foreigner beside that also can help to increase gross domestic product to economic country.

2. Easy to market

Joy & Juicy produce many types of fresh fruit where we are easy to get the input and also easy to market because people mostly interested with fruit.

3. Save time in producing

To produce a product regarding to the customer’s demand, it requiring low time involvement and save time in producing.

4. Low competitor to attractive

At the place where our business located, these types of business still has low competitor which produce product same like us compare to other business. Customers have few choices to choose that makes we are as a power of supplies.

5. Easy to create external stimuli

The way how we present our product is easy to create external stimuli because naturally fruits has fresh smelly that can attract customers to buy our product.

6. Create supply

This business creates supply rather than create a demand. This business create a variety of product so then can create a demand to customer.

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2.2 FUTURE PROPECTS OF THE BUSINESS

Capital requirement

Capital requirement of a business is important. The funding of the business can be done with using the entrepreneur‘s own money or from external source such as borrowing loan from banks, finance company and cooperatives. Our partnership businesses contribute RM9643 for each person.

Risky

J&J enterprise face on low risk to enter a particular business field which is low competitor. At Sunway Pyramid only have two competitor which is Daily fresh and MBG, but two of them not sell a variety product compare to our company is supply a variety product. Based on risk on insurance scheme cover fire and accident at work is under responsibility of Sunway Pyramid department. For the risk machine breakdown our business take a risk to purchase the entire machine needed.

Loans

Based on financial, J&J ENTREPRISE is face on problem on first three month which is get a loss on sale, but our company able to recover loan and expenses because our profit still can support expenses and repay a loan.

Credit

J&J not facing on credit because our business is pay in cash. So, it not turns to a bad debt and will be treated as an expense for the company.

Foreigner Exchange

J&J ENTREPRISE not involve on foreign exchange and our business has not to face the risk of fall and rise in the exchange rate and our business using home currency unit in Ringgit Malaysia.

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2.3 OBJECTIVE OF BUSINESS PLAN

1 To Convince Bank In order to get Loan.

This business plan is prepared by JOY & JUICY ENTERPRISE for the purpose of obtaining working capital loan from SME Bank.

2 As a Guideline in Managing Business

This business plan is prepared by JOY & JUICY ENTERPRISE as a guideline for managing proposed venture

3 Forecasting Performance of Business in Future.

This business plan may provide information to management of this proposed business and how well this business progress in future

4 Preparation for Unexpected Situation.

By preparing this business plan, we may predict and assume what consequences may happen in future and what action we should take to solve it.

5 To get Big Picture of Business.

This business plan is a useful document that may explain about the proposes business before we start and develop it.

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2.4 COMPANY BACKGROUND

Name Of Company : J&J Trading Enterprise

Business Address(Shope) : Lot F2.57, 1st Floor, Sunway Pyramid,No. 3, JalanPj11/15, Bandar Sunway, 46150 Petaling Jaya, Selangor Darul Ehsan

Telephone Number : 012 7753368

Form Of Business : Partnership

Main Activities : Fruits Trading

Date Of Commencement : 30.01.2011

Date Of Registration : 27 JAN 2009

Registration Number : CA 0124030/T

Name Of Bank : SME BANK

Bank Account Number : 1405-1673844-68-1

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2.4.1 COMPANY LOGO

GREEN COLOUR : Indicated Peaceful and natureYELLOW COLOUR : Indicated Easy to see. Easy to attract the potential customer. BEE : Hard working animal indicated our partnership hard working to

establish a business. TAGLINE : Feel the luscious refer that our product making a variety product

base on fruit and attract the customer to try our product and feel it. JOY & JUICY : With image fruit in the word is display that our product produces

variety product based on fruits.OVUL : make a comparative relationship between our partnerships.

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2.5 BENCHMARK

Name : Mr. Jeffry bin Shahrul

Age : 38 years old.

No telephone : 016-9969918

Marital Status : Married and has three children.

Position : Manager Fruit Stick @ Klcc and Mid Valley.

Academic Qualification : Degree in Civil Engineering

Home Town : Johor

Experience : 20 Years in Food and beverage (F&B)

10 years as a Manager of Fruit Stick

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2.6 LOCATION PLAN

In J&J ENTERPRISE we know that location is one of the most important decision that entrepreneur should make. We aware that wrong choice of location can result lower sales and higher operation cost. So, for that reasons we have survey many strategic places to open our shop. After look at all aspects, we are agreed to open our shop at Sunway Pyramid shopping mall. We choose this place because of several reasons.

J&J ENTERPRISE’s lot shop located at Lot F2.57, 1st Floor of Sunway Pyramid. Sunway Pyramid located at center of Bandar Sunway. This is one of the most important factor as it easy excess by public or customers thus reduce time taken and transportation cost to reach this place. Just about 2 to 3 kilometers from it, there are many residential areas. Example like Bandar Sunway, Taman Wangsa Baiduri, Taman Desaria, Taman Subang Permai and many more.

In term of availability of manpower, we are not so worry as this place is near to housing areas. We also planned to hire only two worker to support or sales and operation every day.

Beside that, this place also near to our sources of raw materials. Based from our planned, we plan to purchase our stock of fruits for every two days direct from fruits vendor. Generally, we will get our stock from suppliers in Pasar Borong Selayang Lama and Pasar Borong Selangor which located about 30 to 50 kilometers from our place. In long term, we are still looking and search nearest suppliers for us to reduce our cost of transportation.

A transportation facility is not a big problem. Here, it connects with good connection of roads and highways such as Damansara-Puchong Highway (LDP), Federal highway and so on.

Moreover, the price charge for our shop also affordable compare to other place. Here, we will pay RM 4800 every month for 23x15 square feet compare to KLCC as the management charge RM 30,000 for smaller size of shop. Thus, we save our monthly expenditure for rent at this place.

Other factors that make us choose this place also because of available of utilities such as water supply and electricity that will be supply and arrange by management of Sunway Pyramid.

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Easy excess by customers, availability of manpower, and good transportation facility

Near to sources of input

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PASAR BORONG SELANGOR

PASAR BORONG SELANGOR

SUNWAY PYRAMID

SUNWAY PYRAMID

SUNWAY PYRAMID

SUNWAY PYRAMID

J&J ENTERPRISE

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SUNWAY PYRAMID

SUNWAY PYRAMID

PASAR BORONG SELAYANG LAMA

PASAR BORONG SELAYANG LAMA

J&J ENTERPRISE

2.7 CONTRACT OF AGREEMENT

This agreement will bind the partners with the following aspects:

1. Name of the business : Joy and Juicy enterprise (J&J).

2. The duration of the partnership 10 years to prevent the dissolution of the business. If one partner passes away or withdraws from the partnership, the business will

not be dissolve.

3. Individuals involved in managing the partnership business. Manager : Siti Ubaidah bt Ahlias Administration Officer : Zuraidah bt Abdullah Production Officer : Ainul Afifah bt Ibrahim Sale Officer : Norsidah bt Nazahar Account Officer : Noor Azwin bt Hamzah

4. The accounts of the business and share capital that show the contribution of each partner and the right and obligations of each partner towards the capital

Each partners should be contribute in share of the capital around RM 9643 for each.

All profit and loss will be share equally among all partners and any losses will be liable among partner equally according Partnership Act 1961.

5. The properties are considered as assets of the business All the properties in this company such as furniture, machine and vehicles

considered as assets of the business If the partners are contribute their assets in the company, it also considered as

assets of the business

6. Retirement:

If any partner who want to retire from the business must have consent from others

partners. They will get back their invets and the notice of retirement must be

given 3 months before the retirement date.

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7. Others:

Each of the partners must act in good faith and respect other partners. Partners

must have willingness and interested to make the business more succesful and

giving full commitment for the business. They also must be honest and straight

forward in order to execute responsible as a partner.

.

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2.8 PARTNERS BACKGROUND

Name :Siti Ubaidah Bt Ahlias

Ic No : 830403-56-5400

Address : 04-06-14, Desa Tun Razak, Jln 9/11 8 b

56000, Cheras Kuala Lumpur.

Email : [email protected]

Telephone : 017-3068077

Date Of Birth : 3 April 1982

Age : 28 Years Old

Marital Status : Married

Academic Qualification : Degree In Human Resource

Skills : Microsof Office

Experience : 2005-2007 - Marketing Officer

2007-2009 - Admin Executive

Previous Business Experience : Entrepreneur Seminar 2008

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MANAGERMANAGER

mailto:[email protected]

J&J ENTERPRISE

Name : Zuraidah Bt Abdullah

Ic No : 850120-03-5628

Address : No 4, Jalan Sultan Salahuddin AbdulAziz Shah Tiga, 9/6c, 40100 ShahAlam, Selangor Darul Ehsan.


Telephone : 012-9247587

Date Of Birth : 20 January 1985

Age : 25 Years Old

Marital Status : Single

Academic Qualification : Degree in Finance

Courses Attended : Conventional Entrepreneurs

Skills : Able To Speak In Malay, English AndArabian, Able To Use Microsoft Office Tools Collect And Evaluate Research Data Using A Variety Of Tools Including The Internet.

Experience : As A Cashier in Cashier Dept At Cold Storage, Sacc MallShah Alam

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ADMINISTRATIVE OFFICERADMINISTRATIVE OFFICER


J&J ENTERPRISE

Name : Norsidah Bt. Nazahar

Ic No : 840528-04-5280

Address : No, 12 Jalan Dato Yusof Shahbudin 4 Taman Sentosa 41200 Klang, Selangor


Telephone : 013-7010339

Date Of Birth : 28 May 1984

Age : 26 Years Old


Academic Qualification : Bachelor in Marketing

Courses Attended : Entrepreneurship Convention, Real Undergraduate Conference 2007

Skills : Speak Fluent In Malay, Able To Speak English, Able To Use Ms Word, Ms Excel, Ms Power point, Html Able To Work With Dedicate, Good Sense And Responsibility

Experience : Sales Promoter in Food & Beverage Industry, Clerk in

First Lady, Tutor in Marketing Subject Previous Business : Agent to Food Supplier.Experience

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SALES OFFICERSALES OFFICER


J&J ENTERPRISE

Name :Ainul Afifah Bt Ibrahim

Ic No : 860621-11-5394

Address : No 15 Jalan Dahlia 3/3, Taman Dahlia,Bandar Baru Salak Tinggi, 43900 Sepang,Selangor.


Telephone : 017-6086226

Date Of Birth : 21 June 1986

Age : 24 Years Old


Academic Qualification : Degree in Operation Management

Skills : Microsoft Office

Experience : Part Time Clerk in Uitm, Promoter Parkson, Cashier In

Bookstore

Previous Business Experience : Agent for T-Shirt Printing

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PRODUCTION OFFICERPRODUCTION OFFICER


J&J ENTERPRISE

Name : Noor Azwin Bt Hamzah

Ic No : 851003-10-5820

Address : No.4 Lorong Melor 7, Taman Pertama, 45200 Sabak Bernam, Selangor

Email : [email protected].

Telephone : 017-3685820

Date Of Birth : 03 October 1985

Age : 25 Years Old


Academic Qualification : Degree in Finance

Courses Attended : Entrepreneurship Programmed

Skills : Computer Knowledge – Microsoft Of Word (Word,Excel, Power Point) Communication Skills – Able To Speak Language English/Malay

Experience : Supervisor of Ladies Department Billion ShoppingCentres, Sabak Bernam, Selangor

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ACCOUNT OFFICERACCOUNT OFFICER


J&J ENTERPRISE

3.0 ADMINISTRATION

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3.1 ORGANIZATION CHART J&J ENTREPRISE

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3.2 SCHEDULE OF TASKS AND RESPONSIBILITIES

POSITION MAIN TASKS

GENERAL MANAGERTo plan, implement and control the overall management of the business.To plan and monitor the strategic progress of the business.To be accountable for the overall performance of the business.

EXECUTIVE FINANCIALPlan and manage the capital.Prepare the account balance, income statement, balance sheet.Resolves complex accounting errors or discrepancies to ensure accurate accounting and compliance with applicable rules, regulations, and laws.

EXECUTIVE MARKETINGConduct market research from time to time to learn consumers’ preferences/likings.Managing the production of marketing materials, including leaflets, posters, flyers and etc.Prepare marketing plan.Monitoring competitors’ activity.

EXECUTIVE OPERATIONLiaison person with the shopping complex.In-charge of operation hours of the shop.Plan and manage the delivery of fruits, and other suppliers. (E.g. plastic, ice, container, etc)Controls expenditure of input.

EXECUTIVE HR AND ADMINISTRATIONManage the employee details or information.Compute the overtime.Prepare monthly payroll.Manage the statutory payment.As required, recruit, hire, train and supervise, full-timeMaintain procedures manual to ensure consistent performance of routines

SALES ASSISTANTOpen and closing the business.Serving the customers. Take a good care of the working environment.

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3.3 RECRUITMENT PROCESS

Recruitment involves the process of searching, identifying and selecting qualified candidate for position in an organization. The process can be as simple a hiring two of person as a sale assistant at a shop at Sunway Pyramid. This recruitment process will be expected operate on one month

3.3.1 Searching candidate

This is task of looking for candidates and inviting then to apply for vacant position in the business. It can be done by advertising the vacancy through the printed such as regional newspaper. This business refer to present personal because is less costly and a reliable way to get capable candidates.

3.3.2 Selection process This process involves the task of reviewing the applicant, the short-listing applicants and selecting the best candidates for the job. Three most commonly used tools to facilitate these tasks are a job applicant, interview and selection process.

i. Job Application

A job application form is prepared by an employer to gather basic information about applicants. It helps to generate job related information such as age, gender, education level, previous employer can refer to the referees or ex-employer if further information is needed to evaluate the applicant.

ii. Job interview

This is the most frequently used method by employers to gain in depth information about applicant. Face to face meeting gives both parties a chance to learn more about each other. For instance, the employer can evaluate the applicant’s personality and communication skills. Likewise, the applicant can enquire more about the job and the organization he is about to joint.

iii. Selection test.

An employer may choose to use a selection test as a tool to evaluate applicants for position that require certain qualities. The test is used to measure an applicant’s potential to perform the job. These include performance, aptitude, interest, intelligence, skills or practical test. Example of practical test is machine handling skills.

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3.4 SALARY

Salary is a fixed monetary reward paid to workers on periodical basis. J&J enterprise using normal practice to pay salaried workers on a monthly basis. Salaried workers are expected to work a fixed number of hours which is 8 hours per day and 26 days per month. Salaried workers are not subjected to loss of pay in the case of allowed absences such as illness.

Contribution to the employees provident fund (EPF)

It is the responsibility of the employers to register its employees if they are not yet contributor to EPF. It is mandatory for employers to contribute to the EPF for all qualified employees. At present, the statory rate of monthly contribution employees is 11% of the basic salary. The employer’s portion of the monthly contribution is 12%.

Contribution to the social security organization (SOCSO)

Employers are obligated to protect their employees by contributing to the SOSCO. It is a form of insurance to protect the employees in term of monetary composition in case of unforeseen incidents at the work place. All employees earning RM3000 or less amount are qualified to contribute to this fund. Employees earning more than RM 3000 a month can also contribute to the fund with the consent of the employers. The rate of contribution by the employers and employees is based on the basic salary.

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3.5 LIST OF EQUIPMENT

MACHINE/EQUIPMENT QUANTITY PRICE PER UNIT (RM)

TOTAL COST

Cash register 1 1 500 1 500Punch card machine 1 1 500 1 500Lamp 5 1 000 5 000Supervisor desk and chair 1 250 250TOTAL 4250 8250

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3.6 ADMINISTRATION BUDGET

FIXED ASSETS

EXPENSES(RM)

MONTHLY EXPENSES

(RM)

OTHEREXPENSES

(RM)

Furniture and Fitting 5250Machinery and Equipment 3000Rent 4800Utilities 800Sundry 300Rental deposits 9600Deposits utilities 1600Road tax/ Insurance 1200Business Registration/ License 175Advertisement newspaper 200Job application form 10Legal fee 200TOTAL 8250 5900 12985

Total :27,135

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4.0 MARKETING

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4.1 MARKETING OBJECTIVE

As we know, fruits are one of the essential elements in our diet. In pyramid, fruits are in the third place that needed to all people for their body. In addition to, Joy & Juicy (J & J) Enterprise will be produce variety of fruits which is Fruits, “Rojak Buah”, Ice Blended, Juices, Strawberry-Dip-Chocolate, Cordial Drinks and our own recipe, Bano Sore.

Fruits business is a kind of common business in Malaysia, but why J & J Enterprise still chooses this kind of business? It is because we have our own technique and recipe in order to keep our product fresh and quality compare to other competitors.

In addition to, we want to cover 10% market share for starting year on existing market share. Our targets also want to increase percentage of market share at least 2% every year. By increase our sales every years we can create good competition among the other two competitors which is Daily Fresh and MBG Fresh Fruits.

4.2 PRODUCT OR SERVICES

As we know, fruits contain vitamins which are essential for our body to growth. In order to add variety to our product, besides sell our fruits, we also sell juices. The unique and strength of our product are based on our ingredient used, our own recipe such as Bano Sore that we adapt from traditional foods and we also apply safety policy.

The product that J & J Enterprise produce is Bano Sore which is our special recipe that contribute 10% of sales, Assortment of Fruits with contribute 30% of sales, Stick Fruits with contribute 5% of sales, Rojak Buah with contribute 10% of sales, Ice Blended with 10% of sales, Juices with 10% of sales, Strawberry-Dip-Chocolate with 5% of sales and Cordial Drinks with 10% of sales.

Besides that, other strength of our company also is based on our strategic location where most people passing by. Thus, it is not possible for customer to buy our product. Our company also operate everyday including public holidays and festival seasons.

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4.3 TARGET MARKET

As we are in Sunway Pyramid, our own targets are people who stay near that area which is resident in Taman Desaria, Taman Medan, Seksyen 15, Seksyen 14 and Taman Subang Permai. Besides that, Bandar Sunway also comprises of operating commercial and industrial business such as in Petaling Jaya Seksyen 7, Petaling Jaya Seksyen 9, Petaling Jaya Seksyen 11 and Lagoon Perdana. Moreover, there are also have student from many institutions such as Sunway Collage, Monash University, Taylors University Collage and The First Academy. Our product produce fresh fruit with contain a lot of vitamins that satisfied our customer needs and want.

From this, we are using segmented marketing as target market alternative. Our target is people who come to Sunway Pyramid. The common bases that we use segmentation include demographic segmentation which is information about their level of age with average range start from 5 years old and above, their income average level from RM 1000 and above, gender, occupation and education with average range start kindergarten until university student. Other than that, we also use psychographic segmentation which includes the personal tastes of the customer, the preference of the customer, customer status and loyalty to product. In behavioural segmentation, we identify occasion, user status and loyalty status.

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4.4 MARKET TREND AND MARKET SIZE

Nowadays, people are concern with healthy lifestyle. So, they will seek product that will give benefit to them. Today, time is so importance, so consumers more prefer to purchase something which is less time consuming in preparing it. Beside that, consumer also prefer product that are easy to reach them. The population at Sunway Pyramid is around 200,000 people. There are two major market segments within the target market area which is student from institutions and families living. The first group consists of about 8300 students from 4 institutions and the second group is made up of 191,700 from 9 families living including secondary and primary school at that area.

J & J Enterprise estimated the market size to be RM 27,500 a month, that is, RM 9,000 a month from 4 intistutions and RM 8,000 a month from families. We also took into consideration factors that may affect sales such as the school holiday and fasting month of Ramadhan. Using this information, J & J Enterprise estimated the market size to be only RM 309,600 per year.

Base from all the trends in our market today, we are confidence that our product may attract consumer as it will reduce their obstacle in life. We see that this business guarantee high return as the market size in value amount to RM 3,096,000 per year (RM 258,000 x 12 months). Part from the value, J & J Enterprise own 10% that equal to RM 309,600 per year.

In our location we have only two competitors to compete with them. J & J enterprise feel that it is not too tough to survive in this industry.

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4.4.1 Market Share

J & J Enterprise has identified 2 main competitors, which are Daily Fresh and MBG Fresh Fruits. Our survey according to this business reveals that each of the competitor controls a percentage of the market as shown below.

Market Share before Entry of J & J Enterprise:

Daily Fresh : 55% RM 141,900

MBG : 45% RM 116,100

100% RM 258,000

After analyzing the competitor’s strength and weaknesses, J & J Enterprise is confident it can control 10% of the market. This will mean that the existing competitors will lose some of their market after the entry of J & J Enterprise.

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Adjusted Market Share after the Entry of J & J Enterprise:

Daily Fresh : 50% RM 129,000

MBG : 40% RM 103,200

J & J Enterprise : 10% RM 25,800

100% RM 258,000

Estimated market share for J & J Enterprise is 10% or RM 25,800 per month.

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4.5 COMPETITION

To identify our competitor, we ensure that to assess their market position and strategy in term of product quality, pricing, distribution and promotion of competitors. Besides, we also look for competitor strengths and weaknesses in market.

COMPETITORS STRENGTHS WEAKNESSES

DAILY FRESH a) In term of size, Daily Fresh own higher market share which is 50.5%.

b) Experience for Daily Fresh in Sunway Pyramid is 5 years.

a) The promotion for Daily Fresh is not widely or lack of promotion.

b) Fruits display is not in proper ways in order to retain the quality of fruits.

MBG FRESH FRUITS

a) In term of size, MBG own 40.5% of market share.

b) MBG already experience for 3 years in Sunway Pyramid.

a) The price of the product is too expensive.

b) The location in Sunway Pyramid is not strategic.

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4.6 FORECAST SALES

There are several factors need to be taken into consideration when forecasting sales. In general, customer awareness of a business that has just started operations will take some time. While the customers familiarise themselves with the new business and its product or services, the business can expect sales to be less than the estimated market share. From this, we take action to speed up customer awareness and boost early sales figures with an aggressive and intensive marketing effort. For example we are focus on promoting our product and building trust between our business and our target market.

In term of seasonal factor, customer buying patterns can be influenced by certain seasons that occur within a particular business period. We as a new business have identified seasonal factor such as school holidays, festival season (Hari Raya Puasa, Chinese New Year, Deepavali and Christmas and so on) and weather conditions.

J & J Enterprise produce a variety fruits in Sunway Pyramid. From our survey, our target market area that the market size for fruits is about RM RM 3,096,000 per year. Since we are starting a new business, J & J Enterprise is confident it can achieve 10% market share which is equivalent to RM 309,600 per year.

As J & J Enterprise is just started the business, will take some time to achieve target profit. As we are new business, our target sales can be expect to be less than estimated market share for the first year.

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Market size = RM 3,096,000 per year

Market Share J & J Enterprise = 10%, RM 283,800 per year (for the first year with 11 month, RM 25,800 x 11 months)

Sales Forecast for Joy & Juicy Enterprise Year 2011

Month Sales Forecast (RM)

January -

February 23,200

March 23,200

April 23,736

May 23,736

June 24,252

July 24,252

August 23,200

September 24,510

October 24,510

November 24,768

December 25,026

Total 240,128

According to our marketing objective, our market share will increase 2% for every year. This means that J & J Enterprise market share for the year of 2012 is to be 12% which is equivalent to RM 271,520 and for the year 2013 is achieve 14% market share which is equivalent to RM 433,440.

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4.7 MARKETING STRATEGY

The marketing strategy that we are using consists of four key variables, also known as the 4Ps of marketing. The four variables are product, price, place and promotion.

a) Product strategy

In term of quality of our product, we are using only quality input such as fresh fruits to produce high quality output. Beside that, we also using simple and easy to carry by customer. We also produce mix the colour of fruits to attract customer attention besides using cordial and ice-blended drinks.

b) Pricing Strategy

Our price of the product is based on cost with average mark up 22% on cost per unit and some of our product also based on competition among another two competitors in Sunway Pyramid. Besides that, our factors affecting price of the product is according to our product concept, cost target market, our marketing objectives and targeted profit. We also look to economic conditions, government regulation, social concerns and consumer in order to setting the price.

c) Place Strategy

We are choosing Sunway Pyramid as our location of the business base on several factors such as type of product, target market, transportation ease and product standardization.

i) Type of product

Our product is easy to market. It means that, this business is accepted to all people because meet needs and wants of the customers. Besides that, we know that food is one of the basic needs for our body. Thus, fruits are one of the foods that people will buy.

ii) Target Market

As we know, our marketing objective in target market is resident who stay near Sunway Pyramid. In addition to, all level of age with average range start from 5 years and above. Besides that, there are also have student in many institutions such as, Sunway Collage, Monash University and so on that will be our target market.

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iii) Transportation ease

Sunway Pyramid location is strategic as it easy access with connection of highways and roads from many place. This will make easy to people who want to come to Sunway Pyramid.

iv) Product Standardization

Most of our product is using similar input which is fresh fruits. J& J Enterprise produce variety style that using fruits.

d) Promotion strategy

There are several promotion tools in this strategy which are advertising, sales promotion, personal selling and publicity. As we are in this business, our promotion strategies are using advertisement and sales promotion.

In advertising, we using banting and put it beside escalator, lift and other attraction place where people always passing by in order to promote our product. Besides that, we also use sales promotion which is our business using purchase with purchase and also coupon that we give during opening this business.

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4.8 MARKETING BUDGET

Items

Fixed Assets Expenses (RM)

Other Expenses (RM)

Signboard

Fruits Display Fridge (2 units)

Furniture

Round Aluminium Table (3 units) Aluminium Chairs (12 units) Stool (10 units)

Promotion

Price list Banting Banting stand

Grand Opening

Balloon Coupon Others accessories

Business Card (100 pieces x 5)

Workers T-Shirt ( 7person x 2)

1,500

16,000

270

600

1190

500

150

100

100

40

50

60

350

Total 19560 1350

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5.0 OPERATION MANGEMENT

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5.1 OPERATION MANAGEMENT

Operations management can be defined as the process of marshalling business input to transform them into output in the form of product or services. In J&J enterprise, we produce variety of fruits products such as:

Bano sore Assortment of fruits Mix fruits Stick fruits Strawberry dip chocolate Rojak Buah Ice blended Fresh juices Cordial drinks

In J&J ENTERPRISE, we plan our operation activities to ensure that our business will meet customers’ expectation, which include production parameters such as quality, quantity and cost.

In J&J ENTERPRISE, we are using lot of fruits as our raw material beside manpower, machine and equipment, and capital as our input. All this input we transform it into value added and quality product. All process involve had been planned systematically to ensure smooth flow of operation beside fully utilize resources and reduce cost of production in the future.

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5.2 PROCESS PLANNING

Process planning involve the identification of the step-by-step processes from beginning to end in making the product or in providing the services

Here we prepared the flow chart of J&J Enterprise products:

1. Bano Sore

40

Put it in the microwave’s tray. Add some sugar on it

Baked it for about 5 minutes in the microwave

Wait until the colour change to little bit brown and take it out

Put the bananas into plastic box.

Add 1 scope of ice cream with some decoration

Serve to customers

Slice banana into 4 slices

J&J ENTERPRISE

2. Assortment Of Fruits (Example: guava, papaya, watermelon, honey dew, mango, pineapple, jackfruit, dragon fruit, ciku.)

41

Choose the best quality fruits

Clean the fruits under running water

Cut the fruit

Put the cut fruit into a plastic

Deliberate the amount of fruit in the plastic until it reach 150grams

Serve to the customers

J&J ENTERPRISE

3. Mix Fruits(Combination of 4 to 5 kind of fruits in one cup)

4. Stick Fruits

42


Cut the fruit

Put the cut fruit into a transparent cup




Cut the fruit


Take 4/5 slice of fruit and put into a rib


J&J ENTERPRISE

5. Strawberry Dip Chocolate

6. Rojak Buah

43

Dip it into chocolate fountain

Clean the fruits under running water.

Cut all the fruits into bite size and combine them in a large mixing bowl.

Add in the prepared “Sambal Rojak” and stir with the fruit until well combined.

Serve portion in plastic box. Top with generous amount of grounded peanuts.


Choose the best quality strawberries

Take 4 strawberry and put into a stick



J&J ENTERPRISE

7. Cordial Drinks(Example: Orange, Ice Lemon Tea and Soya Bean)

8. Ice Blended(Chocolate, kiwi, sour soup, pink guava)

44

Pour 2 tea spoon of selected cordial into the ice blended machine

Add 2 cup of ice

Cover the fruit juicer and switch on the machine

Blend it well for a bout 30 second

Pour the ice blended into transparent cup

Put some cream or chocolate rice

Cover the cup and serve to the customer

Add 7 liters water

Pour selected cordial into cordial drink machine

Switch on the machine

When it is ready, serve to customer using transparent cup

J&J ENTERPRISE

9. Fresh Juices(Any fruits choose by customer from variety of fruits stick)

45

Clean selected fruit under running water

Slice the selected fruits and put into the fruits juicer

Add some sugar and cover the fruit juicer

Switch on the machine and blend it well for about 30 seconds

Pour the juice into transparent cup

Serve to customers

J&J ENTERPRISE

5.3 PRODUCTION PLANNING

The main objective of production planning is to ensure the quantity of production is enough to fulfill expected market or sale forecast over certain period. J&J enterprise adopt Chase Strategy where the quantity varies to suit marked demand for every day.

J&J enterprise determine number of input require based from forecasting percentage of product through average forecast sale.

Here is our example of calculation for output per month for each product.

1. Bano Sore

Average sales forecast per month = 10% x RM 25,800= RM 2,580

Price per unit =RM 3.00

Number of output per month =RM 2,580/RM 3.00=860 units

Number of working days/month =30 daysAmount of output per day =860 units/30days

= 29 units per day

2. Assortment Of Fruits


Price per unit = RM 2.00

Number of output per month = RM 7,740/RM 2.00= 3,870 units

Number of operation days/month = 30 daysAmount of output per day = 3,870 units/30 days

= 129 units per day

46

J&J ENTERPRISE

3. Mix Fruits

Average sales forecast per month =10% x RM 25,800 = RM 2,580


Number of output per month = RM 2,580/RM3.00= 860 units

Number of operation days/month = 30 daysAmount of output per day = 860 units/30days

= 29 units per day

4. Stick Fruits



Number of output per month = RM 1,290/RM 2.00= 645 units

Number of operation days/month = 30 daysAmount of output per day = 645 units/30 days

= 22 units per day

47

J&J ENTERPRISE

5. Strawberry Dip Chocolate


Price per units = RM 4

Number of output per month = RM 1,290/RM4.00= 323 units


= 11 units per day

6. Rojak Buah





= 29 units per day

48

J&J ENTERPRISE

7. Ice Blended

Average sales forecast per month =10% x RM 25,800= RM 2,580


Number of output per month = RM 2,580/RM 5.00= 516 units

Number of operation days/month = 30 daysAmount of output per day = 424 units/30 days

= 17 units per day

8. Juice





=22 units per day

49

J&J ENTERPRISE

9. Cordial Drinks





=43 units per day

50

J&J ENTERPRISE

5.3.1 SUMMARY OF PRODUCTION PLANNING

Product Total Average

sales per

month (RM)

Percentage sales of

each product

per month (%)

Average sales

forecast per

month (RM)

Price per unit

(RM)

No. of output

sold per

month (unit)

Working day per month

No. of output

sold per day(unit)

Bano sore 25,800 10 2580 3.00 860 30 29

Assortment of fruits

25,800 30 7740 2.00 3870 30 129

Mix fruits 25,800 10 2580 3.00 860 30 29

Stick fruits 25,800 5 1290 2.00 645 30 22

Strawberry dip chocolate

25,800 5 1290 4.00 323 30 11

Rojak buah 25,800 10 2580 3.00 860 30 29

Ice blended 25,800 10 2580 5.00 516 30 17

Fresh juices 25,800 10 2580 4.00 645 30 22

Cordial drinks

25,800 10 2580 2.00 1290 30 43

TOTAL 100% 25,800 9869 331

Based from the diagram, it show our forecast for the unit of output that will be sell in day and month based from our total average sales per month.

In order to give better understanding, we had transferred all the data into a pie chart below;

51

J&J ENTERPRISE

52

J&J ENTERPRISE

5.4 MATERIAL PLANNING

Material management is an important component of any production set up as materials often form a high percentage of the total cost of the finished product or services.

J&J Enterprise choose the best quality of fresh fruits as the main ingredient for our product. Fruits would not last for a long period, so this is challenging for us to ensure we purchase enough stock to fulfill customer demand without wasting it.

Most of our materials are purchase from vary suppliers as we will compare and buy from the most cheap price for every purchase. It’s our company policy where we are not stick to one supplier to supply the same product. What the most important for us is to find the lowest cost in order to minimize our cost of operation thus gain more profit.

1. Bano Sore

Material Quantity Safety Stock Total Material Requirement

Price/Unit (RM)

Total Price(RM)

Banana 30 kg 2 kg 32 kg 4 128.00Sugar 2 kg 1 kg 3 kg 2 6.00Cooking oil 1 liter 500 ml 1.5 liter 12 12.00Ice cream 1 box 1 box 2 box 6 12.00Transparent box 7 packet 1 packet 8 packet 5.00 40.00Plastic fork 7 packet 1 packet 8 packet 2.50 20.00Total 218.00

53

J&J ENTERPRISE

2. Assortment Of Fruits


Price/Unit (RM)

Total Price(RM)

Guava 140 kg 10 kg 150 kg 3.20 480.00Dragon fruit 50 kg 3 kg 53 kg 5.00 265.00Watermelon 100 kg 7 kg 107kg 1.50 160.50Honey dew 100 kg 7 kg 107 kg 2.50 267.50Mango 100 kg 7 kg 107 kg 3.50 374.50Pineapple 80kg 5 kg 85 kg 1.50 127.50Plastic 39 packet 1 packet 40 packet 2.50 100.00Rib 39 packet 1 packet 40 packet 2.00 80.00“serbuk asam” 5 packet 1 packet 6 packet 4.00 24.00Fruits dressing 3 bottel 1 bottel 4 packet 7.00 28.00Soy sweet sauce

6 bottel 1 bottel 7 bottel 3.00 21.00

Cili padi 1 kg 100 gram 1.1 kg 8.00 8.80TOTAL 1936.80

3. Mix Fruits

Material Quantity

Safety Stock

Total Material Requirement

Price/Unit (RM)

Total Price(RM)

Guava 30 kg 2 kg 32 kg 3.20 102.4Water apple 20 kg 1 kg 21 kg 5.00 105Watermelon 15 kg 1 kg 16 kg 1.50 24Honey dew 20 kg 1 kg 21 kg 2.50 52.5Mango 20 kg 1 kg 21 kg 3.50 73.5Pineapple 15 kg 1 kg 16 kg 1.50 24Dragon fruit 15 kg 1 kg 16 kg 5.00 80Grapes 15kg 1 kg 16 kg 8.00 128Papaya 15 kg 1 kg 16 kg 1.50 24Transparent cup 6 packet 1 packet 7 packet 8.00 56.00Rib 6 packet 1 packet 7 packet 2.00 14.00Total 683.40

54

J&J ENTERPRISE

4. Stick Fruits


Price/Unit (RM)

Total Price(RM)

Papaya 30 kg 2 kg 32 kg 1.50 48.00Ciku 15 kg 1 kg 16 kg 7.00 112.00Jack fruit 30 kg 2 kg 32 kg 8.00 256.00Water apple 30 kg 2 kg 32 kg 5.00 160.00Plastic 5 packet 1 packet 6 packet 3.00 18.00TOTAL 594.00

5. Strawberries Dip Chocolate

Material Quantity Safety Stock

Total Material Requiremant

Price/Unit (RM)

Total Price(RM)

Chocolate 2kg 1 kg 3 kg 10.00 30.00Strawberry 19.2kg 1.5 kg 20.7 kg 15.00 310.50Rib 5 packet

(x 100 pc)1 packet 6 packet 2.00 12.00

Plastic box 3 packet 1 packet 4 packet 5.00 20.00Total 372.50

55

J&J ENTERPRISE

6. Rojak Buah


Price/Unit (RM)

Total Price(RM)

Chilli Sauce 5 liter 1 liter 6 liter 32.4 32.40

Sweet Soy Sauce

5 liter 1 liter 6 liter 31.00 31.00

Sugar 30kg 2kg 32kg 1.50 48.00Cili Padi 2 kg 100 gram 2.1 kg 8.00 16.80Belacan 500 gram 30 gram 530 gram 2.50 2.50Ground nuts 2 kg 200 gram 2.2 kg 5.00 11.00Pineapple 12kg 2 kg 14 kg 1.50 21.00Mango 20 kg 2 kg 22 kg 3.50 77.00Turnip 30 kg 2 kg 32 kg 4.00 128.00Guava 20 kg 2 kg 22 kg 3.20 70.40Water apple 20 kg 2 kg 22 kg 5.00 110.00Cucumber 10 kg 2 kg 12 kg 5.00 60.00Transparent box

6 packet 1 packet 7 packet 5.00 35.00

Rib 6 packet 1 packet 7 packet 2.00 14.00Total 657.10

7. Ice Blended


Price/Unit (RM)

Total Price(RM)

Chocolate 2 kg 1 kg 3 kg 10.00 30.00Sour soup 8 liter 2 liter 10 liter 12.00 120.00Pink guava 8 liter 2 liter 10 liter 12.00 120.00Kiwi 8 liter 2 liter 10 liter 12.00 120.00Chocolate rice 1 packet 1 packet 2 packet 3.00 6.00Whipe Cream 5 bottle 1 bottle 6 bottle 8.00 48.00Transparent cup 4 packet 1 packet 5 packet 8.00 40.00Straw 4 packet 1 packet 5 packet 1.50 7.50Total 491.50

8. Fresh Juice

56

J&J ENTERPRISE


Price/Unit (RM)

Total Price(RM)

Orange 20 Kg 2 Kg 22 8.00 176Apple 20 Kg 2 Kg 22 8.00 176Watermelon 21 Kg 3 Kg 24 1.50 36Mangga 20 Kg 2 Kg 22 3.50 77Sugar 50 kg 3 kg 53 kg 1.50 79.5Ice 90 packet 6 kg 96 kg 2.00 192Transparent cup 5packet 1 packet 6 packet 8.00 48.00Straw 5packet 1 packet 6 packet 1.50 9.00TOTAL 793.50

9. Cordial Drinks

Material Quantity Safety Stock

Total Material Requirement

Price/Unit (RM)

Total Price(RM)

Orange Cordial 8 liter 2 liter 10 liter 12.00 120.00Soy Cordial 8 liter 2 liter 10 liter 13.00 130.00Lemon Tea Cordial

8 liter 2 liter 10 liter 12.00 120.00

Sugar 100 kg 20kg 120kg 1.50 180.00Transparent cup

10packet 1 packet 11 packet 8.00 88.00

Straw 10 packet 1 packet 11 packet 1.50 16.50Total 654.50

5.4.1 TOTAL RAW MATERIAL COST

57

J&J ENTERPRISE

NO PRODUCT COST (RM)1. Bano Sore 218.002. Assortment Of Fruits 1936.803. Mix Fruits 683.404. Stick Fruits 594.005. Strawberries Dip Chocolate 372.506. Rojak 657.107. Ice Blended 491.508. Fresh Juice 793.509. Cordial Drinks 654.50

TOTAL COST 6, 401.30

The table above show the total J&J ENTERPRISE spend for raw material cost monthly for all 9 products, is RM 6,401.30.

The above pie chart show percentage of raw material expenses cost for each product monthly. Assortments fruits show highest cost spends monthly compare to Bano Sore with difference off 26%.

5.5 MACHINE & EQUIPMENT PLANNING

58

J&J ENTERPRISE

In order to produce our product, we are using several machine and equipment to produce good and quality product to our customer. Below is the detail of the machine and equipment required:

NO

MACHINE&EQUIPMENT QUANTITY PRICE/UNIT (RM)

TOTAL PRICE (RM)

1. Freeze 1 1 099.00 1 099.002. Fruit juicer 1 200.00 200.003. Ice-blended machine 1 10 000.00 10 000.004. Cordial drink machine 1 13 000.00 13 000.005. Chocolate fountain 1 5 000.00 5 000.006. Microwave 1 269.00 269.007. Chopping board 5 10.00 50.008. Knife 6 20.00 120.009. Peeler 2 14.50 29.0010. Weight scale 1 97.00 97.0011. Bowl 2 5.00 10.0012. Ice cream scope 1 5.00 5.0013. Spoon 10 2.00 20.0014. Apron 6 5.00 30.0015. Vinyl disposable gloves 60 boxes 5.00 300.00

TOTAL 30,229.00

FURNITURE

J&J enterprise choose to make some renovation in order to match with the production daily at shop beside create smooth and effective flow of production.

NO MACHINE&EQUIPMENT QUANTITY PRICE/UNIT (RM)

TOTAL PRICE (RM)

1. Build-in cabinet (renovation) 1 25 000.00 25 000.00TOTAL 25 000.00

5.6 MANPOWER PLANNING

59

J&J ENTERPRISE

In J&J ENTERPRISE, we had decided that all partners have to participate in production and daily business. We also hire another two workers to support our operation and increase our productivity and efficiency;

NO POSSITION NO.OF STAFF

REQUIRED

SALARY/MONTH (RM)

EPF 12 %, 11%

(RM)

SOCSO 2%

(RM)

TOTAL (RM)

1. Manager 1 1 500 180 30 1 7102. Account Officer 1 1 500 180 30 1 7103. Administrative

Officer1 1 500 180 30 1 710

4. Operation Officer 1 1 500 180 30 1 7105. Marketing Officer 1 1 500 180 30 1 7106. Sale Assistant 2 650 71.50 13 1 469

TOTAL 1 0019

5.7 OPERATIONS LAYOUT

60

J&J ENTERPRISE

Layout refers to the arrangement of machine, equipment, workers and other facilities used in the operations

In JOY & JUICY lot shop, we are using process layout based. This is because the layout is suitable for a business that produce several products using similar processes

This type of layout is design based on the similarity of processes where by machine and equipment that perform similar function will be grouped together

Here we have attach our operation layout for our shop lot at Sunway Pyramid

5.8 OPERATIONS BUDGET

61

J&J ENTERPRISE

ITEM FIXED ASSETS(RM)

MONTHLY EXPENSES (RM)

OTHERS EXPENSES (RM)

Machine 29,099.00

Equipment 1,130.00

Van 20 000.00

Build-in cabinet (renovation)

25,000.00

Raw Materials 6,401.30

Wages + EPF + SOCSO

10,019.00

TOTAL 74,099.00 16,420.30 1,130.00

TOTAL BUDGET 91,649.30

62

J&J ENTERPRISE

6.0 FINANCING

63

J&J ENTERPRISE

J & J ENTREPRISE

6.1 PROJECT IMPLEMENTATION COST

Project Implementation Cost

Requirements Cost

Fixed Assets Land & Building Furniture & fixtures 8810 Machinery 48099Vehicle – Van (2nd hand) 20000 Renovation cost 25000 Plant & MachineryOffice Equipment Working Capital 2 monthsAdministrative 11800 MarketingOperations 32840 Pre-Operations & Other Expenditure 15465 Contingencies 10% 16201

TOTAL 178215

64

J&J ENTERPRISE

6.2 SOURCES OF FINANCING

Sources of Finance

Requirements Loan Hire-Purchase Own Contribution

Fixed Assets Cash Existing F. Assets

Land & Building Furniture & fixtures 5595 3215 Machinery 48099 Vehicle – Van (2nd hand) 20000 Renovation cost 25000 Plant & Machinery Office Equipment Working Capital 1 months Administrative 11800 Marketing Operations 32840 Pre-Operations & Other Expenditure 15465

Contingencies 10% 16201

TOTAL 130000 48215

65

J&J ENTERPRISE

6.3. PRO FORMA CASH FLOW STATEMENT

J & J ENTERPRISECASH FLOW PRO FORMA STATEMENT

MONTHPre- 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL

Operations YEAR 1 YEAR 2 YEAR 3

CASH INFLOW

Equity (Cash) 48215 48215

Term loan 130000 130000 371520 433440

Cash Sales 23200 23200 23736 23736 24252 24252 23200 24510 24510 24768 25026 264390 371520 433440

TOTAL CASH INFLOW 178215 23200 23200 23736 23736 24252 24252 23200 24510 24510 24768 25026 442605

CASH OUTFLOW

Administrative Expenditure

Rent 4800 4800 4800 4800 4800 4800 4800 4800 4800 4800 4800 4800 57600 57600 57600

Utilities 800 800 800 800 800 800 800 800 800 800 800 800 9600 9600 9600

Sundry 300 300 300 300 300 300 300 300 300 300 300 300 3600 3600 3600

Salary, EPF & SOCSO

Marketing Expenditure

Salary, EPF & SOCSO

Advertising

66

J&J ENTERPRISE

Operations Expenditure

Cash Purchase 6401 6401 6401 6401 6401 6401 6401 6401 6401 6401 6401 70411 85450 99691

Salary, EPF & SOCSO 10019 10019 10019 10019 10019 10019 10019 10019 10019 10019 10019 110209 120228 120228

Payment of account payable

Carriage inward & duty

Rental

Utilities

Other Expenditure

Pre-Operations

Deposit (rent, utilities, etc.) 11200 11200

Business Registration & Licences 175 175

Insurance & Road Tax for Motor Vehicle 1200 1200 1200 1200

Other Pre-Operations Expenditure 2890 2890

Fixed Assets

Purchase of Fixed Assets - Land & Building

Purchase of Fixed Assets - Others 101909 101909

Hire-Purchase Down Payment

Hire-Purchase Repayment:

Principal

Interest

Loan Repayment:

Principal 903 903 903 903 903 903 903 903 903 903 903 903 10833 10833 10833

Interest 433 433 433 433 433 433 433 433 433 433 433 433 5200 4767 4333

Tax Payable

67

J&J ENTERPRISE

TOTAL CASH OUTFLOW 117374 7236 23656 23656 23656 23656 23656 23656 23656 23656 23656 23656 23656 384827 293278 307085

CASH SURPLUS (DEFICIT) 60841 (7236) (456) (456) 80 80 596 596 (456) 854 854 1112 1370 57778 78242 126355

BEG: CASH BALANCE 60841 53605 53149 52693 52773 52853 53449 54045 53589 54443 55297 56409 57778 136020

END: CASH BALANCE 60841 53605 53149 52693 52773 52853 53449 54045 53589 54443 55297 56409 57778 57778 136020 262375

68

J&J ENTERPRISE

6.4 PRO FORMA INCOME STATEMENT

Pro Forma Income Statement WE CARE FOR YOU SDN. BHD.

PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3

Sales 264 390 371520 433440

Less: Cost of Sales

Opening stock

Purchases 70411 85450 99691

less: Ending Stock

Carriage Inward & Duty

70411 85450 99691

Gross Profit 193979 286070 333749

Less: Expenditure

Administrative Expenditure 70800 70800 70800

Marketing Expenditure

Other Expenditure

Business Registration & Licences 175

Insurance & Road Tax for Motor Vehicle

1200 1200 1200

Other Pre-Operations Expenditure 2890

Interest on Hire-Purchase

Interest on Loan 5200 4767 4333

Depreciation of Fixed Assets 6577 6577 6577

Operations Expenditure 110209 120228 120228

Total Expenditure 197051 203572 203138

Net Profit Before Tax (3072) 82498 130611

Tax 0 0 0 Net Profit After Tax (3072) 82498 130611 Accumulated Net Profit (3072) 79426 210037

69

J&J ENTERPRISE

6.5 PRO FORMA BALANCE SHEET

J & J ENTERPRISEPRO-FORMA BALANCE SHEET

Year 1 Year 2 Year 3 ASSETS Fixed Assets (Book Value) Land & Building Furniture & Fitting 5250 5250 5250

Machinery & Equipment 3000 3000 3000

Fruit display 14000 12000 10000

Furniture 3560 3560 3560

Machinery 26189 23279 20369

Renovation 25000 25000 25000

Van 18333 16666 14999

95332 88755 82178

Current Assets Stock of Raw Materials 0 0 0 Stock of Finished Goods

Accounts Receivable

Cash Balance 57778 136020 262375

57778 136020 262375

Other Assets Deposit 11200 11200 11200 TOTAL ASSETS 164310 235975 355753

Owners' Equity Capital 48215 48215 48215 Accumulated Profit (3072) 79426 210037

45143 127641 258252

Long Term Liabilities Loan Balance 119167 108334 97501

Hire-Purchase Balance

119167 108334 97501

Current Liabilities Accounts Payable

TOTAL EQUITY & LIABILITIES

164310 235975 355753

70

J&J ENTERPRISE

6.6 FINANCIAL ANALYSIS

J & J ENTERPRISE

FINANCIAL PERFORMANCE

Year 1 Year 2 Year 3

PROFITABILITY Sales 264390 371520 433440 Gross Profit 193979 286070 333749 Profit Before Tax (3072) 82498 130611 Profit After Tax (3072) 82498 130611 Accumulated Profit (3072) 79426 210037 LIQUIDITY Total Cash Inflow 442605 371520 433440 Total Cash Outflow 384827 293278 307085 Surplus (Deficit) 57778 78242 126355 Accumulated Cash 57778 136020 262375 SAFETY Owners' Equity 45143 127641 258252 Fixed Assets 95332 88755 82178 Current Assets 47732 125948 252277 Long Term Liabilities 119364 108334 97501 Current Liabilities 0 0 0 FINANCIAL RATIOS Profitability Return on Sales -1% 22% 30% Return on Equity -7% 64% 51% Return on Investment -2% 35% 37% Liquidity Current Ratio - - - Quick Ratio (Acid Test) - - - Safety Debt to Equity Ratio 2.64 0.85 0.38 BREAK-EVEN ANALYSIS Break-Even Point (sales) 104724 108180 107952 Break-Even Point (%) 40% 29% 25%

71

J&J ENTERPRISE

Return on sales

Year

Return on equity

Year

72

%%

J&J ENTERPRISE

Return on investment

Year

Debt to equity ratio

Year

73

%

Times

J&J ENTERPRISE

6.6 BUDGET

ADMINISTRATIVE BUDGET

Particulars F.Assets Monthly Exp. Others Total

Fixed Assets

Furniture & fitting

5250

5250

Machinery & Equipment 3

000 30

00

-

-

-

-

-

-

Working Capital

rent 4800 48

00

Utilities 800 8

00

sundry 300

300

- -

- -

- -

- -

Pre-Operations & Other Expenditure

Other Expenditure -

Deposit (rent, utilities, etc.)

11200 1

1200

Business Registration & Licences

175 1

75


1200

1200

Other Pre-Operations Expenditure 4

10 41

0

Total 8250 5900 12985

27135

74

J&J ENTERPRISE

6.7.1 MARKETING BUDGET

MARKETING BUDGET


Fixed Assets

Signboard 1

500 15

00

Fruits Display fridge 16

000 1600

0

Furniture

2060

2060

-

-

Working Capital

Salary, EPF & SOCSO

Advertising

- -

- -

- -

- -

- -


Other Expenditure

Deposit (rent, utilities, etc.) -

-

Business Registration & Licences -

-


Other Pre-Operations Expenditure

1350 1

350

Total 19

560 1

350 2091

0

75

J&J ENTERPRISE

6.7.2 OPERATION BUDGET

OPERATIONS BUDGET


Fixed Assets

Machinery 29099 2909

9

Van 20000 200

0

Renovation 25000

25000

Working Capital

Raw Materials & Packaging 6401 640

1

Carriage Inward & Duty - -

Salaries, EPF & SOCSO 10019 100

19

Rental

Utilities


Other Expenditure

1130 1130Deposit (rent, utilities, etc.)

Business Registration & Licences -

-

Insurance & Road Tax for Motor Vehicle -

-

Other Pre-Operations Expenditure -

-

Total 740

99 16420 1130

91649

76

J&J ENTERPRISE

6.8 DEPRECIATION SCHEDULE

Fixed Asset Fruit displayCost (RM) 16000 Method Straight Line

Economic Life (yrs) 8 Annual Accumulated

Year Depreciation Depreciation Book Value

- -

16000

1 2000 20

00 14

000

2 2000 40

00 12

000

3 2000 60

00 10

000

Fixed Asset MachineryCost (RM) 29099 Method Straight Line

Economic Life (yrs) 10 Annual Accumulated


- - 29099

1 291

0 2

910 26189

2 291

0 5

820 23

279

3 2910 87

30 2

0369

77

J&J ENTERPRISE

78

Fixed Asset VanCost (RM) 20000 Method Straight Line Economic Life (yrs) 12

Annual Accumulated


- - 20000

1 1667 1667 1666

6

2 1667 333

3 149

99

3 1667 500

0 133

32

J&J ENTERPRISE

6.9 LOAN AMORTIZATION SCHEDULE

LOAN REPAYMENT SCHEDULEAmount (Rm) 130000 Interest Rate 4% Duration (yrs) 12 Method Anually Year Principal Interest Total Payment Principal Balance

-

- - 130000

1

10833 5200

16060

119167

2

10833 4767

15626

108334

3

10833 4333

15192

97501

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J&J ENTERPRISE

6.10 SALES & PURCHASES PROJECTION

SALES PROJECTIONMonth 1 - Month 2 23200 Month 3 23200 Month 4 23736 Month 5 23736 Month 6 24252 Month 7 24252 Month 8 23200 Month 9 24510 Month 10 24510 Month 11 24768 Month 12 25026Total Year 1 264390 Total Year 2 371520 Total Year 3 433440

PURCHASE PROJECTIONMonth 1 6401 Month 2 6401 Month 3 6401 Month 4 6401 Month 5 6401 Month 6 6401 Month 7 6401 Month 8 6401 Month 9 6401 Month 10 6401 Month 11 6401Month 12 6401 Total Year 1 70411 Total Year 2 85450 Total Year 3 99691

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J&J ENTERPRISE

6.11 COLLECTION FOR SALES & PAYMENT FOR PURCHASES

CASH COLLECTIONS FOR SALESIn the month of sale 100%1 month after sale2 months after sale Total 100%

CASH PAYMENTS FOR PURCHASESIn the month of purchase 100%1 month after purchase 2 months after purchase Total 100%

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J&J ENTERPRISE

7.0 CONCLUSION & JUSTIFICATION

As a conclusion according to our proposal, we hope we can convince capitalist, banker and investor in order to raise capital to manage a business more effectively in future as to achieve our vision and our mission, which is to gain high profit and revenue generated by its sales cover all expenditure to set up business and also increase our productivity.

This proposal also will be used as our guidelines to handle this business effectively in future and this is refer on how to operate a business according four important element which is on administration, marketing, operation and also financial.

We believe that, our business will success due to strategic location that we choose that may attract many people to visit our shop and purchase our product because our shop is located on shopping mall which is easy to obtain a customer.

On financial we obtain a deficit on for the first there year because on beginning business. Our businesses also have a deficit during a fasting month because on high demand, but profit per year we obtain a profit on three year forecast.

In addition, since our product a variety product based on a fruits, we ensure that our business will go further, and will obtain a customer because customer can make an option on our variety product.

J&J ENTERPRISE operate to make a quality product in order to satisfaction of our customer. This is for make a long term relationship with our customer in order to increase our sale.

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8.0 APPENDIX

83

Final ent

Documents

Transcript of Final ent