Full Report BUSINESS PROPOSAL

7/26/2019 Full Report BUSINESS PROPOSAL

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NATIO

FACULTY OF E

DEPARTMENT O

BU

S-TE

GROUP 20 MEMBERS:

HASLIZAH ABDUL GHA

MOHD NAZMI B. MAT S

GOH YING NGIAPTAN FU YANG

DUE DATE: 1stDECEMBER 2

NAL UNIVERSITY OF MALAYSIA

GINEERING AND BUILT ENVIRONME

CHEMICAL AND PROCESS ENGINEE

SINESS PROPOSAL

HNOLOGY SDN. BHD.

AR A119024

LLEH @ AB. HAMID A118298

A117429A116808

10

i

T

ING

JKAS

JKMB

JKEESJKKP


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i

LIST OF CONTENT

LIST OF CONTENT i

1.0 EXECUTIVE SUMMARY 1

2.0 VISION, MISSION AND MANAGEMENT TEAM 2

2.1 Vision 2

2.2 Mission 2

2.3 Management Team 2

2.4 Ownership 3

3.0 MARKET SUMMARY 4

3.1 Current State Of The Industry 4

3.1.1 Economic and Market Condition 4

3.1.2 Evolution of New Technology 4

3.1.3 Increase Demand for Printing and Extra Services 4

3.1.4 Cost Effectiveness 5

3.2 MARKET SEGMENT 5

3.2.1 Geographic segmentation 5

3.2.2 Demographic segmentation 5

3.2.3 Psychographic segmentation 6

3.2.4 Behavioral segmentation 6


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ii

4.0 PROBLEM AND OPPORTUNITIES 6

4.1 Customer 6

4.1.1 Customer Buyers Needs And Preferences 6

4.1.2 Customers Buying Motives 7

4.2 SWOT Analysis 8

5.0 BUSINESS CONCEPT 10

5.1 General Description Of The Business 10

5.2 Industry Background 11

5.3 Company Logo 12

6.0 COMPETITION 12

6.1 Industry Competition 12

6.2 Competition And Competitive Advantages 13

6.2.1 Major Competitors 13

6.2.2 Competitive Advantages 15

7.0 GOALS AND OBJECTIVES 15

7.1 Goals 15

7.2 Objectives 16

8.0 FINANCIAL PLAN 17

8.1 Financial Model 17


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iii

8.2 Estimates Material Cost And Pricing 17

8.3 Financial Forecasting 19

8.4 Break-Even Analysis 21

9.0 RESOURCE REQUIREMENTS 22

9.1 Technology Requirements 22

9.2 Personnel Requirements 23

9.3 Location 23

9.4 Promotion 24

9.5 Services 25

9.5.1 Inventory Control 25

9.5.2 Customer Service 25

10.0 RISKS 26

10.1 Addresing Risks 26

10.1.1 Employee Risks 27

10.1.2 Technology Risks 27

10.1.3 Market Risks 27

10.1.4 Financial Risks 27

10.1.5

Time Risk 28

10.2 Rewards 28

10.2.1 Start Up Requirement 28

10.2.2 Funding Investment 29


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iv

10.2.3 Current Liability 29

11.0 CONCLUSION 30

11.1 KEY ISSUE 30

11.1.1 NEAR TERM 30

11.1.2 LONG TERM 31


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1

1.0. EXECUTIVE SUMMARY

S-Technology Sdn Bhd is a private company which will be built up at Shah Alam

Malaysia. Hereby, we would like to introduce a smart printer which has the characteristic of slim,

smart and speed by using high technology.

Motives for entering the business enterprise are fame and recognition, personal financial

gain, great challenge, to fulfill needs that have not yet been met and to create value in the lives of

customers. These motives encourage producing a printer which fulfills demand and convenience

of customers. Moreover, we are willing to take risk and challenges in our business.

The goal is to build upon the trust of the customer and contribute to the continuous

growth in market share and some of the objectives are to contribute the effort with hard work and

diligent, invest our best effort in everything undertaken, keeping in-line with the latest

technology, provide our clients with the best services and supports,

Target market will be salesman, universitys students, businessman, realtor, insurance

agent and for those working out of office. The startup capital is about RM1,600,000. These

amount is split among the team members and financing with local bank.


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2

2.0 VISION, MISSION AND MANAGEMENT TEAM

2.1 VISION

S-Technology Sdn Bhd have dedicate ourselves to become the global leader in providing

a leading-edge, integrated intelligent solution and leading company in smart printing and

technology environment.

2.2 MISSION

S-Technology Sdn. Bhd is highly committed in providing a Slim, Smart and Technology

products. Furthermore, we also providing users friendly products and services to our partner by

encouraging them towards a change in lifestyle and eventually, inspiring them to embrace a

digital environment.

2.3 MANAGEMENT TEAM

S-Technology Sdn Bhd was established by four members who have establish with various

skills and work experience runs from manufacturing, international marketing, and finance to

small business entrepreneurship. All of the team members, who bring in complementary skills

and a wealth of experience in the management of new and growing business, and they also share

their part as members of Board of Directors. S-echnologys management teams consist of:


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1. TAN FU YANG

Chief Executive Officer

2.

MOHD NAZMI MAT S

Chief Marketing Officer

3. HASLIZAH ABDUL G

Chief Financial Officer

4. GOH YING NGIAP

Chief Operation Officer

2.4 OWNERSHIP

S-Technology Sdn. Bhd

team members and finan

percentage of the owners

Fi

LLEH

AFAR

was registered with paid-up capital of RM1,60

cing with Public Bank. Tan Fu Yang was ho

ip. Paid-up capital will be as shown in the figu

ure 2.1: Percentage of Ownership

Tan Fu

Yang

35%

MohdNazmi

25%

Haslizah

20%

Goh Ying

Ngiap

20%

3

0,000 among the

lding the highest

e below:


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3.0 MARKET SUMMARY

3.1 CURRENT STATE OF THE INDUSTRY

3.1.1 Economic and Market Condition

Economic recovery is on the way. Current figures and forecasts show Indonesia, Thailand,

and Malaysia will enjoy relatively large growth in technology industries. Our company seeks to

co-operate with these nearest country because it will open up our market in others country. Also,

we plan to seek low cost supplier and low cost resources in these country to better compete with

others competitors.

3.1.2 Evolution of New Technology

The evolution of these new trends and technologies in the printing industry will bring

fresh challenges and opportunity. We must ensure that unrewarding old processes and workflow

habits will have to be shelved and more productive ventures into rewarding and new technologies

to remain competitive and successful in the next millennium.

3.1.3 Increase Demand for Printing and Extra Services

Demand of services other than selling products had been increasing recently. We will

provide services such as warrantee, services after sales and enquiry information need to provide

for customer to meet customer satisfaction.


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3.1.4 Cost Effectiveness

Companies across the industry are experiencing increased competition in the market and

tremendous pressure to decrease prices. So, we always put emphasis on low cost production by

doing the right things at the first time. This will reduce rework job and wastage when producing

our products.

3.2 MARKET SEGMENT

3.2.1 Geographic segmentation

Our country had multi-national, global businesses and brands. However, geographic

segmentation such as region, climate, and population density does not influence our market

segment.

3.2.2 Demographic segmentation

We had dividing the market into groups based on variables such as age, gender family

size, income, occupation, education, religion, race and nationality.

3.2.3 Psychographic segmentation

We also divided the market into groups according to customers lifestyles. Though here,

we can indicate what people do, their activities, their opinion, and their buying behavior.


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3.2.4 Behavioral segmentation

This element is very important because there are closely related to the product itself and

based on actual customer behavior toward products. We had indicated some information about

benefits sought, usage rate, brand loyalty, user status, readiness to buy, and occasions through

user preferences and opinion.

4.0 PROBLEM AND OPPORTUNITIES

4.1 CUSTOMER

4.1.1 Customer Buyers Needs and Preferences

Costumer needs motivate people to act. Understanding how buyers satisfy their needs

provides guidelines for our marketing action. We understanding that consumer acquire

satisfaction through product function, price, quality, and durable.

Daily activities of people almost influence them to have an own printer. For example, a

salesmans need to print out the product specifications, cost, advantages which need to show to

customer to achieve their sales. All of this kind of activities requires a printer able to bring to

anywhere and use in anytime.

Brand Loyalty is the consumer's conscious or unconscious decision, expressed through

intention or behavior, to repurchase a brand continually. In order to create brand loyalty, we

need to break consumer habits, help them acquire new habits, and reinforce those habits by


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reminding consumers of th

purchasing those products in t

4.1.2 Customers Buying Moti

Fig

From the figure above, i

selecting our Smart printer. Pr

extremely small size is a basic el

Ready and easy to use ar

Just connect it to our computer/d

the printing status. Besides that,

English, Chinese, Japanese and

literacy, they are ability to use

without USB cable. User only

detect automatically when receiv

prospect consumer.

value of their purchase and encourage t

e future.

ves

re 4.1: Customers Buying Motives

shows that that the portable is a major facto

spect consumer indicates that easy bring to

ment when they choose the new technology pr

the second factor encourage consumer buying

evice via USB, additionally there is an OLED

touch screen enable user choose a variety of

even Bahasa Melayu. Although a person i

it. Bluetooth function enable user to print out

needs to install software in their laptop, after

e command from laptop. It surely bring a big c

7

em to continue

when consumer

everywhere and

nter.

our Smart printer.

creen to displays

language such as

s not technology

their documents

that printer will

onvenient for our


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4.2 SWOT ANALYSIS

Strengths- S

1. S-Technology printer is

slim, smart, and high speed

by using new technology.

2. Strategically of

manufacturing location.

3.

Low cost of production.

4. Enable charges premium of

price because we gain first

mover advantage.

5.

Strong distribution channel.

6. Promotion and advertising.

Weaknesses- W

1.Lack of experience in

managing company.

2.

Reputation of company is

new in the market.

3.

Financial weak because we

are emerge company.

4.Depend on single product

line.

Opportunities- O

1. Economics recovery.

2.

Growing population and

higher education people.

3. Increase switching costs for

competitors.

4. Changing customer needs

and preferences for printer .

5. Technology has changed

SO STRATEGIES

1.Economic recovery enhances

the buying power of

perspective customer, so

charges the premium price

for our printer able to

increase our cash flow

moving. (S4, O1)

2.S-printer meets the demand

WO STRATEGIES

1.Seek for advisory and

consultant opinion in manage

business. (W1, O2)

2.Worldwide sales to increase

our financial performance.

(W3, O7)

3.

Expand product line in

future.


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expeditiously over the

years.

6.

Changing lifestyle,

activities and attitudes of

consumer.

7.

Worldwide sales.

due to the growing

population changing lifestyle

of people. (S1, O2, O4, O6)

3.Strategically locations of

manufacturing, promotion

and advertising able to

worldwide sales. (S2, S7,O7)

4.

Increased switching cost for

competitors enable us to gain

large market with low

production cost. (S3, O3)

Threats- T

1. Customer loyalty toward

certain brand.

2.

Increasing prices of raw

material in current market.

3.

Life cycle of technology

products become shorter.

4. Imitate product by

competitors, legal

challenges.

ST STRATEGIES

1.Changing customer loyalty

and habit to our Smart printer

through promotion and

advertising. (S1, T1, S7)

2.

Charges premium price for

our printer because life cycle

technology become shorter in

today (S4, T3).

WT STRATEGIES

1.Seeking low cost raw

materials in other country.

(T2)

2.Increase reputation of

company by hiring an

advisory who have power

influence in the

market.(W2)

3.Seeking others resources for

financial help. (W3)


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5.0 BUSINESS CONCEPT

5.1 GENERAL DESCRIPTION OF THE BUSINESS

S-Technology Sdn Bhd is a new company and involve in manufacturing which produces a

multi functions printer to public. S-Technology Sdn Bhd estimated running business in year 2011.

The company name has been registered under Company Act 1965. S-Technology Sdn Bhd was

originally registered with paid-up capital of RM1,600,000 split among the team members and

financing with Public Bank. S-Technology Sdn Bhd is located at Shah Alam Malaysia.

Organization bound by several rules and regulations. A company has an existence

independent of its members therefore it can sue and be sued by others. Companies and their

activities are directly regulated by the Corporations Law. The Corporations Law controls most

aspects of a company's formation, business and winding up and must be carefully considered.

Moreover, the death, retirement or other withdrawal of a member will not terminate the company

and may not even require any reorganization of the company's operations. The company also is a

separate legal entity; thus, it pays tax. Companies are taxed at a flat rate, which is significantly

lower than the upper ranges of the marginal tax rates applying to individuals. If the company

makes significant profits, there can be a large tax saving.

S-Technology Sdn Bhd management team has been established by four members, who

have over 6 years experience and distinct skills in operation, international marketing, finance and

management. Moreover, we have excellent interpersonal skills and are a great collaborator with

an open design process. With these distinct skills and uniqueness printer, we hope to become a

leading company in the market.


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S-Technology Sdn Bhd has established a quality management system that placed great

emphasis in achieving consistent high quality in its products. Consistent high quality in products

and good customer service are vital factors for S-Technology Sdn Bhd to compete successfully in

the international market.

Nowadays, printer is playing very important role in our life especially for workman.

Therefore, customers will buy the printer without any hesitation. However, S-printer in the

market and it is different with other competitors printer, it has many others functions such as

bluetooth, touch screen, setting for multiple languages and adjustable to standard size.

5.2 INDUSTRY BACKGROUND

In Malaysia, there are a lot of companies dealing with printers product and Canon is one

of our major competitors. Although there are many competitors in printer industries in Malaysia

but there are few competitors may produce portable printer. Other countries like China and Japan

produce cheaper products than us and we found that it is necessary to modify the printer to

achieve a better performance on the customers works. Since printer had changed to emergency

usage, customers demand for printer increases.

It has become challenges for us to introduce a new model of printer into the future market.

However, through our R&D strategies, we may produce higher quality and technologies product

than other producer. In addition, through our business strategy, we capable compete with them.

Therefore, our business has great potential to be growth in Malaysia. Our business concept is

come from our survey. We believe our company will be successful become leading company and

greatest printers producer not only in Malaysia.


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5.3 COMPANY LOGO

We designed a distinctive logo of printer. It formed from three basic color which are red,

yellow and blue. The S represent company name and mean slim, smart and speed. It symbolic

this company will produce a slim, smart printer with high speed when used.

6.0 COMPETITION

6.1 INDUSTRY COMPETITION

In Malaysia, there are a lot of companies dealing with printers product and Canon is one

of our major competitors. Although there are many competitors in printer industries in Malaysia

but there are few competitors may produce portable printer. Other countries like China and Japan

produce cheaper products than us and we found that it is necessary to modify the printer to

achieve a better performance on the customers works. Since printer had changed to emergency

usage, customers demand for printer increases. It has become challenges for us to introduce a

new model of printer into the future market. However, through our R&D strategies, we may

produce higher quality and technologies product than other producer. In addition, through our

business strategy, we capable compete with them. Therefore, our business has great potential to

be growth in Malaysia. Our business concept is come from our survey. We believe our company


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will be successful become leading company and greatest printers producer not only in Malaysia

but in Asian too.

6.2 COMPETITION AND COMPETITIVE ADVANTAGES

6.2.1 Major Competitors

Figure 6.1: Revenue (RM) Figure 6.2: Sales (RM)

a. Canon

Ever since Canon Marketing (M) Sdn Bhd was established in 1987, it has become a major

corporate player in Malaysia. Canon in Malaysia has now more than 20 years of success, 20

years of non-stop product launches, 20 years of commitment from employees, 20 years of

support from customers, 20 years of passion and drive from business partners.

Revenue

Canon

HP

Lexmark

Epson

Sales

Canon

HP

Lexmark

Epson


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b. HP

HP is a technology company that operates in more than 170 countries around the world.

They explore how technology and services can help people and companies address their problems

and challenges, and realize their possibilities, aspirations and dreams. They offer consumers a

wide range of products and services from digital photography to digital entertainment and from

computing to home printing.

c. Lexmark

Since inception in 1991 as a spin-off of IBM, Lexmark has become a leading developer,

manufacturer and supplier of printing and imaging solutions for offices and homes. Lexmark is

the only player in the industry which is exclusively focused on distributed output. Lexmark's

products are sold in more than 150 countries in North and South America, Europe, the Middle

East, Africa, Asia, the Pacific Rim and the Caribbean.

d. Epson

Epson Malaysia Sdn Bhd has the exclusive rights to the marketing and distribution of the

complete range of EPSON products in Malaysia and Brunei. It is a brand thats internationally

recognized as a market leader. Epson Malaysia Sdn Bhd, with strong support from their

principals in Japan, is committed to the high standards of excellence.


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6.2.2 Competitive Advantages

a) First mover advantage

Technology has changed expeditiously over the years, and it advances with a geometric

progression rather than an arithmetical one. Every technology product we use daily is getting

smaller and smarter each day. There are quite a few portable printers out there but none is like

our Smart printer as small and tiny. This portable printer was not designed to handle heavy loads,

but it can be very useful for printing on-the-go. Smart printer is a portable printer concept enables

user to print their documents anywhere and anytime. It is still not commercially available.

b) Strategic dealer network

Our distribution channel takes into account a strong dealer network. Throughout Malaysia,

S-Technology Sdn Bhd resellers provide a professional pre sale and after sales service.

7.0 GOALS AND OBJECTIVES

7.1 GOALS

S-Technology Sdn Bhd goals for the first five years of operation: As the popularity of printer

continuous to grow exponential rate, easy and affordable for every customer is quickly becoming

a necessity of life. S-Technology Sdn Bhd is highly committed in providing a slim, smart and

high speed printer by using new technology. S-Technology Sdn Bhd is to dedicate ourselves to

become the global leader in providing a leading-edge, integrated intelligent solution and leading


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company in smart printing and technology environment. Furthermore, we also providing users

friendly products and services to our partner by encouraging them towards a change in lifestyle

and eventually, inspiring them to embrace a digital environment.

7.2 OBJECTIVES

S-Technology Sdn Bhd is a contribution to the hard work and diligence by us, based on the

following objectives:

Provide our clients with the best services and supports, where we take integration as our

core business strategy to integrate multiple components to one simple and user-friendly

printer.

Slim, smart, high speed and portable printer at a reasonable price.

To fulfill our clients needs and thus providing us a path to create better products and

solutions tailored to our clients lifestyle.

Through innovations within our employees, we find the perfect solutions suited for each

of our clients and keeping in-line with the latest technology.

We invest our best effort in everything we undertake and take pride in honesty and

integrity in everything we do.


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8.0 FINANCIAL PLAN

8.1 FINANCIAL MODEL

The initial business model of S-Technology Sdn. Bhd show as below:

Table 8.1 Initial Model of S-Technology Sdn. Bhd

(RM)

Assets 400,000

Cash In Bank 700,000

Loan from Bank 300,000

TOTAL 1,400,000

8.2 ESTIMATES MATERIAL COST AND PRICING

The following table is shows the cost estimates for a unit of printer.

Table 8.2 Cost Estimates for a Unit

MATERIAL USING COST PER UNIT

PVC 1.00

Arc chip inject printer 2.50

COMS Battery 4.00

Battery Clip 0.50


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USB Printer Cable 1.2M, Floppy Cable 3.00

USB Bluetooth Adapter 20.00

Canon BCI-3E Ink Cartridge 33.00

Aluminum 0.60

Touch screen 1.20

Direct Labor 20.00

Cost Overhead:

Electricity

Others

2.50

7.20

Total 95.50

According to the table above, the sales price estimates is RM 165 per unit. The quantities of

printer which can be produced in a year are estimate in 7000 units. The cost spent is showed as

Table 8.3 below:

Table 8.3 Cost Estimates for 7000 Units

MATERIAL USING COST PER UNIT RM

7 000 UNITS

PVC 1.00 7,000

Arc chip inject printer 2.50 17,500

COMS Battery 4.00 28,000

Battery Clip 0.50 3,500

USB Printer Cable 1.2M, Floppy Cable 3.00 21,000


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USB Bluetooth Adapter 20.00 140,000

Canon BCI-3E Ink Cartridge 33.00 231,000

Aluminum 0.60 4,200

Touch screen 1.20 8,400

Direct Labor 20.00 140,000

Cost Overhead:

Electricity

Others

2.50

7.20

17,500

50,400

Total 95.50 668,500

8.3 FINANCIAL FORECASTING

To estimate the cost earn and expense for a year, S-Technology Sdn. Bhd. estimates around

20,000 units of printers have been produced. Table 8.3 below is shows the cost analysis from

year 2010 until 2013.

The sales will increase from year 2010 2012 due to the new technology and new

products been established compare to other competitors. At year 2013, the sales will decrease

because the competitors start to produce the same product by using the same technology. The

salaries expenses are increased every year due to the increasing salaries to workers and hire more

workers for research and development new products. High utilities expenses at initial but will

decrease when the business and production become stable. Maintenance fee is depending on the

production and machines work life.


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Distribution expenses will increase from year 2010 2012 but will decrease when year

2013 because the market sales are decrease due to the decrease in demand of S-Technology Sdn.

Bhd. printer. Promotion expenses will increase at the initial but decrease when year 2012 due to

the stable in market demand. Transportation fees will increase every year due to the increasing of

petrol price every year and transport the products to more places.

The net profit can be shown at Table 8.4.

Table 8.4 Profit Analysis from Year 2010 2013

2010

(RM)

2011

(RM)

2012

(RM)

2013

(RM)

Estimates Net Sales

- Cost Material

3,100,000

668,500

3,500,000

675,000

3,950,000

680,000

3,760,000

690,000

2,431,500 2,825,000 3,270,000 3,070,000

Operating Expenses

Salaries 300,000 350,000 390,000 420,000

Utilities 100,000 110,000 105,000 105,000

Maintenance 88,000 95,000 105,000 100,000

Insurance 35,000 35,000 35,000 35,000

Interest 330,000 330,000 330,000 330,000

Distribution 100,000 140,000 190,000 180,000

Rent 130,000 132,000 132,000 132,000

Promotion 300,000 400,000 350,000 350,000


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Transportation 45,000 51,000 55,000 60,000

Others 80,000 85,000 83,000 88,000

Total Expenses 1,508,000 1,413,000 1,775,000 1,800,000

Profit 923,500 1,412,000 1,495,000 1,270,000

- Income Tax (15%) 148,525 211,800 224,250 190,500

Net Profit 774,975 1,200,200 1,270,750 1,079,500

8.4 BREAK-EVEN ANALYSIS

Total Fixed Cost = Maintenance + Rent + Utilities + Insurance + Interest

= RM 88,000 + RM 130,000 + RM 100,000 + RM 35,000

+ RM 330,000

= RM 683,000

Total Variables Cost = Salaries + Distribution + Promotion + Transportation

+ Others expenses + Cost Material

= RM 300,000 + RM 100,000 + RM 300,000 + RM 45,000

+ RM 80,000 + RM 668,500

= RM 1,493,500

Cost variable per unit = RM 1,493,500 / 20,000 unit

= RM 74.68


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Break-even point in unit = Total Fixed Cost / (Revenue cost per unit - Cost variable per unit)

= RM 683,000 / ( RM 165 - RM 74.68)

= 7562 unit

Break-even point in RM = 7562 unit X RM 165

= RM 1,247,730

9.0 RESOURCE REQUIREMENTS

9.1 TECHNOLOGY REQUIREMENTS

From the basic design of printer in S-Technology Sdn Bhd, technology nowadays was needed

have Bluetooth technology, OLED or touch screen technology, rechargeable battery and etc. First

of all, the these technology were bought license from other company like SONY and HP.

Research and development in S-Technology Sdn Bhd will install these technology in the printer.

The chips and materials needed for these technologies will be bought from suppliers.

To increase the productivity of printer, S-Technology Sdn Bhd will buy the printers from

contractors company by supply the printer design for the company. Receiving is the ultimate

responsibility of the operation manager, the automatic connection with supplier makes the task of

operation manager become much easier in purchasing materials. The material for cover of printer,

PVC will buy from suppliers outside. Malaysia has a high supply for plastic PVC and it easy

been found anywhere.


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The other technology needed is the rechargeable battery for printer which can be used

when no electricity. This battery will be produced with other contractor companies which

produce the input and output of electricity from our design.

9.2 PERSONNEL REQUIREMENTS

Electrical engineers are needed to design the installation of printer by combine the few of

technologies. They also need to research the new technology and modify the printer to improve

the quality and efficient of the printer. Mechanical engineers also needed to handle the machine

in production line. Besides that, it needs some creative designer to design the modern printer

which can attract the customers and help to increase the sales. Company will connect with

institute and university to hire the employees which fulfill the requirements.

The job like clerk, accountant, purchaser, sales and marketing, cleaner also needed in a

company to handle the sales and purchase the raw materials. Besides that, it need contractor

transporter to deliver the products. Good transportation

is important to consider the costs of both

transporting supplies to the manufacturing location and shipping the finished product to

customers. Skill technician also needed to show and explain with customer. They also needed

service the customer if had problem when used by customers.

9.3 LOCATION

To choose a good location for company, some conditions have been alert like customer

accessibility. Customer accessibility is generally an important consideration in selecting location.


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It also help to increase sales where the places of accessed by customers. The targets and prices of

customers also important in decide a printer which can be used in office or home.

Second issue is business environment which includes the competition, legal requirements,

and tax structure. These elements will influence our business success in future. Try to establish

company in enterprise zones in order to bring jobs to economically deprived areas. These zones

lure business by offering regulatory and tax relief.

9.4 PROMOTION

Advertising is one of the promotion skills. To advertise the product effectively, television

become the main media and newspaper advertisement is the secondary media. Popular TV media

have been choosing such as TV3, NTV7, 8TV and Astro. The newspapers choose included The

Star, Sinchew Daily, Nan Yang Siang Pau, Berita Harian and Utusan Malaysia.

Brochures or booklets as another promotion skill will contain attractive and necessary

information about the products. These can encourage potential buyers to find more details about

the product. Brochures or booklets are issued to citizens around the shopping centre and shops

which sold the products.

Internet is another latest technology which efficient and cheap. SMART Technology will

prepare a website about the company and products which customers easy to access it. Besides

that, company will advertise about the latest product at few social website such as msn, facebook

and friendster or others famous forums like Cari to attract prospect customer.


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Exhibition at some shopping center and Pikom PC fair is a good promotion skill. The

customers can understand more about the products from the promoter and can make a smart

choice due to the high competitive there.

9.5 SERVICES

9.5.1 Inventory Control

All sales are monitored on an ongoing basis with the data information linkage from retailer.

Operations manager have responsible for handle inventory control such as barcodes, and

potentially RFID tags, to provide automatic identification of inventory objects. This system

automates a sales order fulfillment process. Real time inventory control systems use wireless,

mobile terminals to record inventory transactions at the moment they occur. A wireless LAN

transmits the transaction information to a central database. These can help for the security system

too.

9.5.2 Customer Service

Customer service is designed to monitor customer feedback. E-mail feedback that requires certain

questions to be answered as a prerequisite to submitting the e-mail transmission. Company is

willing to give feedback for the customer if they face any problems in using our printer as fast as

we could.


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Technician has been provided if the customer faced the problems. A few technicians are

needed which can handle the customer around the Malaysia. The technicians will visit the

customer directly to help to solve the problems.

The guarantee of product provided is along one year and customers have the rights to

return and refund the products for acceptable reason within this period. All customer call will be

directed to our administrative assistant/receptionist.

10.0 RISKS

10.1 ADDRESING RISKS

Our success depends in part on our ability to develop and introduce new products as the first

mover in order to keep pace with competing technologies. However, our manufacturing may

bring in strong competitor such as, Canon, Hp, and Lexmark. In spite of that, we also associated

challenges in the attributes of cost, capacity and reliability.

To achieve consistent success with our customers, we have to balance several key

attributes such as time-to-market, time-to-volume, quality, cost, service, price and a broad

product portfolio. Our operating results will be adversely affected if we fail to:

1) Maintain overall quality of products in new and established programs

2) Produce sufficient quantities of products at the capacities our customers demand while

managing the integration of new and established technologies


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3) Develop and qualify new products that have changes in overall specifications or features

that our customers may require for our business needs

4) Obtain commitments from our customers to qualify new products, redesigns of current

products, or new components in our existing products

5) Obtain customer qualification of these products on a timely basis by meeting all of our

customers needs for performance, quality and features

10.1.1 Employee Risks

Will we able to ramp up quickly enough and attract the key personnel required to execute

the planned marketing and sales programs?

Are we having enough skilled personal?

10.1.2 Technology Risks

What happens if our core technology does not remain unique in the marketplace?

Are our technologies easy to imitate?

What we could do for the rapidly changing conditions in the technology industry?

10.1.3 Market Risks

Will customer like our product?

If the market is growing, what we should do for continue to grow in the future?

What happen if our product does not accept by the market?

10.1.4 Financial Risks

Will we be able to get the required capital?


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Will we meet your cash flow obligations?

Are we able to handle if interest rates increase?

Will the fluctuations in currency exchange rates happen in the future?

10.1.5 Time risk

Will we produce smart printer in short time?

How many years that we can start earning money from printer market?

Thus, we need to consider all the above matter for the success of our enterprise.

10.2 REWARDS

10.2.1 Start Up Requirement

a) Set-up expanses

Legal RM700

Consultant RM2000

Insurance RM1000

Rent RM1500

Computer system RM1000

Communication line RM800

Fixture RM700

TOTAL SET-UP EXPANSES RM7700


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b) Set up asset needed

Cash balance on starting day RM5000

Start up inventory RM2000

TOTAL SET-UP ASSET RM7000

10.2.2 Funding Investment

Cale bruckner RM1000

John underwood RM1000

Wilson RM2000

TOTAL INVESTMENT RM4000

10.2.3 Current liability

Account payable RM 0

Current borrowing RM4570

Other current liability RM1000

TOTAL CURRENT LIABILITY RM5570

LOSS AT SET UP RM7700

TOTAL CAPITAL RM3700

TOTAL CAPITAL AND LIABILITY RM9270


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11.0 CONCLUSION

As a startup company, we are facing many challenge such as finding capitals, suppliers,

and location. Anyways, we believe our channels through the retailers, distributors and sellers can

brings together the successful trends of social networking. With the rich experience of our

advisor and consultant, we believe them can bring us towards successfully. With the great

promotion in our uniqueness printer through financially support by our company, we believe that

we can success in launching our printer and gain profit. It is very important for us because it can

build our company image and affect our next product to be successful in the market. With the

effort and persistency our team member, it enables us to achieve our mission. In future, we hope

to become a leading company in the market and bring our company towards global market.

11.1 KEY ISSUE

11.1.1 Near term

As a starting company, we are going to begin our marketing strategy in our local market by

concentrating on increasing our smaller business accounts. To increase our cash flow, we not

offer promotion price at our started sales. Besides that, we hope to charge premium price from

our products because we have first mover advantages. Other reason is we are in faster changing

technology industry, our product maybe imitate by future competitors. Therefore, before our

competitors offer more comprehensive product than us, we hope to charges premium at first.


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11.1.2 Long term

We only make discount for our product in second and fourth quadrant because between these

periods is launching PIKOM PC Fair around Malaysia, so we hope can gain biggest market share

from that. By the way, we estimated that our sales will be drop because our competitors will use

some strategy to get back their market share.

Consequences of decision postponement

More expenses such as employee salary, bill electricity.

Lower efficiency in production line.

Delay other project

Over budget

Miss the golden opportunity in investment

Make investor or share holder less confident to our company

Full Report BUSINESS PROPOSAL

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