1. ENT 300
FUNDAMENTALS OF ENTREPRENEURSHIP
GROUP MEMBERS
SHADINA SHAH
CLASS MBM 111 5B
DATE OF SUBMISSION 4TH DECEMBER 2017
NAME OF LECTURER PROF MADYA SHAHARIAH BT
OSMAN
2. 2
ACKNOWLEDGEMENT
Praise is to Allah for His help and guidance that we finally able to complete this project
according to schedule. Many obstacles and difficulties we had to face in preparing this business
plan.
First and foremost we would like to extend our sincerest gratitude to Prof Madya
Shahariah Bt Osman, lecturer of Fundamentals of Entrepreneurship for his willingness in
overseeing the progress of our assignments from its initial phases till the completion of it. Your
invaluable support and patience throughout this journey has been unreal.
To our beloved parents and family who had given us a lot of moral support as well as
financial support, thank you so much. For all the group members, thank you for believing us
whether through our stormy weathers. The experience and knowledge we gained throughout the
process of completing this project would prove invaluable to better equip us for the challenges
which lie ahead.
I also like to express my thanks and appreciation to all the individuals who involved
directly or not directly in helping us giving cooperation and information that we needed along
the way completing this business plan.
Thank You.
3. 3
TABLE OF CONTENTS
ITEM PAGE
A. Cover Letter 6
B. Executive Summary 7
C. Partnership of Agreement 8
1.0 Introduction 11
1.1 Name of business 12
1.2 Nature of business 12
1.3 Industry profile 12
1.4 Location of the business 12
1.5 Date of commencement 12
1.6 Factors in selecting the proposed venture 13
1.7 Future prospects of the business 13
2.0 Purpose Of Preparing The Business Plan 14
3.0 Business / Company Background 14
3.1 Nature of business 14
3.2 Address (business and correspondence) 14
3.3 Telephone number 14
3.4 Form of business 14
3.5 Main business activity 14
3.6 Date of commencement 14
3.7 Date of registration and registration number 14
3.8 Name of bank and account number 14
4.0 Background Of Owner
4.1 Personal particulars of owner 1 15
4.2 Personal particulars of owner 2 16
4.3 Personal particulars of owner 3 17
5.0 Background Of Proposed Project
5.1 Physical location 18
5.2 Price of premise 19
4. 4
5.3 Distance from source of raw material 19
5.4 Availability of manpower 19
5.5 Transportation facilities 19
5.6 Distance from customers 19
5.7 Basic amenities 19
6.0 Marketing Plan 20
6.1 Product or service description 21
6.2 Target market 22
6.3 Market size 23
6.4 Competition 24
6.5 Market share 25
6.6 Sales forecast 27
6.7 Marketing strategy & budget 28
7.0 Operation Plan 32
7.1 Operational objective 33
7.2 Process planning 34
7.3 Operations layout 35
7.4 Production planning 37
7.5 Material planning 38
7.6 Machines and equipment planning 39
7.7 Manpower planning 39
7.8 Overhead requirement 40
7.9 Location 40
7.10 Business and operations hours 41
7.11 License, permits and regulations required 41
7.12 Operations budget 43
7.13 Implementation schedule 44
8.0 Organizational Plan 45
8.1 Organization vision and mission 46
8.2 Organization chart 47
5. 5
8.3 Manpower planning 48
8.4 Schedules of task and responsibilities 48
8.5 Operation Layout 52
8.6 Schedule of remuneration 53
8.7 List of office equipment 55
8.8 List of furniture, fixture and fittings 56
8.9 Pre-operational budget 56
8.10 Utilities expenses 57
8.11 Administration Budget 58
9.0 Financial Plan 60
9.1 Project implementation cost and source of financing 61
9.2 Pro forma cash flow statement 62
9.3 Pro forma income statement 63
9.4 Pro forma balance sheet 64
9.5 Start-up summary 65
9.6 Financial report 66
9.7 Financial analysis 68
10.0 Conclusion 73
11.0 Appendices 75
6. 6
A. COVER LETTER
BUSINESS PLAN
6TH OCTOBER 2017
FLORES VIRENT ENTERPRISE
Jalan KJ 3
78300 Kuala Sungai Baru,
Melaka.
Tel:
7. 7
B. EXECUTIVE SUMMARY
Flores Virent wants to introduce to people about indoor plantation. It is an urban florist that
connects people to the world of plants, fostering delight and curiosity while inspiring an
appreciation and sense of stewardship of the environment. In the garden, in its community and
well beyond, Flores Virent inspires people of all ages through the conservation, display and
enjoyment of plants; with educational programs that emphasize learning by doing; and with
research focused on understanding and conserving regional plants and plant communities. We
believe that people nowadays need some refreshment and relaxing life because the majority of
them are working in an office or organization that had enough time to relax. We hope that we
can encourage people would love to plant and more aware about nature. This may also reduce
the burden of working in the office for hours while smell the fragrance of the flowers. Besides
that, it is to promote environmental awareness and sustainability practices to be shared and
applied across different layers of society.
Flores Virent is located at Jalan KJ 3 78200 Kuala Sungai Baru, Melaka, a prime
location for any type of business. The location is strategic because it is at the center of a housing
area. After through considerations, we determines it is the ideal place for the shop to be open. A
good neighborhood ensures stable operating revenue, since convenience is one of the key factors
in floral industry. Customers value shops within close proximity.
Flores Virent Enterprise will operate six days a week that headed by manager Shadina
Asyiqin Bt Norhasrin Shah with her partners Fatin Ashila Bt Azmi and Nurul Najihah Bt Abu.
The company will have three workers which is cashier, inventory (who managed the order) and
packaging (pack the items).
This document will demonstrate the need for a business such as in Kuala Sungai Baru
and its chances for success. It will serve as road map that will set the course for further planning
and for the implementation process. Anticipated sales are RM 824 890.50 for the first year, RM
907 379.55 for second year and RM 998 117.505 for the third year. This is based on the history
of sales of our competitors. Our pricing strategy will be based on the objectives to get reasonable
profit and to ensure customers continue doing business with us in the future. Emphasis will be
placed on friendly service that will not only meet, but exceed customers’ satisfaction.
8. 8
C. PARTNERSHIP AGREEMENT
All of partners are free to sign this partnership agreement on 7th October 2017. The
function of this partnership agreement is to avoid any fraudulent and deception that might
be happen during the operation of business and ensure business run efficiently and
effectively.
Below are the partners of the Flores Virent Enterprise:
1. Shadina Asyiqin Bt Norhasrin Shah 971208-10-6288
2. Fatin Ashila Bt Azmi 970924-10-6516
3. Nurul Najihah Bt Abu 970110-04-5744
We all are the strength under one roof of Flores Virent Enterprise. We will strive to bring
our product to the customer and market it nationally and internationally in the future.
We are all come with the mutual agreement in relation to the sharing of information,
openness, trust and decision making involvement which lead to the successful of our
company Flores Virent Enterprise. We are agreed to work together and strive till the end
in gaining the target profit and achieving our mission and vision. This agreement is a
symbol of our continued partnership and we will work with each other in good faith and
having a close relationship with one another in ensuring the successful of our company.
1) Company’s Name
Three partners under Partnership Act Registered 1961 (Amendment 1974) established
Flores Virent Enterprise.
2) Business Form
Our business operation and administration will base on the Business Registration Act
1956 (revised 1978) and our business carry on the partnership.
3) Business Location
Our premise is located at Jalan KJ 3 78200 Kuala Sungai Baru, Melaka. The reason
why we choose this location because it is at the center of a housing area. We have
decided to establish the florist’s business due to opportunity and potential to make
profits at the Kuala Sungai Baru area.
9. 9
4) The business will start
Our business will start on 1st January 2018. This business will not be dissolve if one
partner is death but it will dissolve if all partners are agreed to dissolve it.
5) Partners position
Name Position
a) Shadina Asyiqin Bt Norhasrin Shah General Manager / Administration /
Financial Manager
b) Fatin Ashila Bt Azmi Marketing Manager
c) Nurul Najihah Bt Abu Operation Manager
6) Profit and lost sharing is based on the capital contributions of partners.
7) Management of salaries
Name RM
a) Shadina Asyiqin Bt Norhasrin Shah 1 800.00
b) Fatin Ashila Bt Azmi 1 500.00
c) Nurul Najihah Bt Abu 1 500.00
8) Death and dissolve
This partnership will continue operate in the future even partners is dead, until all
agree to dissolve it.
9) Labor right
Each partner is entitled to take 16 days leave per year.
10) All partners have to work hard, build up trust and honesty in their own self, all
information should be informed to the other partners and all partners should keep
secret and policy of company.
10. 10
11) All partners should help each other’s in ensuring the successful of business in the
future.
12) This agreement is valid for 10 years starting from the date of this agreement.
General Manager / Administration / Financial Manager Marketing Manager
Operation Manager
12. 12
INTRODUCTION
1.1 Name of Business
Flores Virent Enterprise
1.2 Nature of Business
Our company is offering an indoor flower plantation to the market. Our business
concept is selling the seeds of variety of flowers from Holland. We provide
variety of flowers’ seeds such as Mini Lotus, Calla Lily, Hyacinth, Tulip, Water
lily, Daffodil, Saffron and many more depending to the season in their homeland.
Once the flowers bloom, it will release the fresh smell of fragrance.
1.3 Industry Profile
Flores Virent Enterprise is about guiding people in indoor flower plantation and
interior decoration. Indoor flower plantation could act as the main mechanism of
relaxation and stress reduction specifically for the working people. We believe
that people nowadays need some refreshment and relaxing life because most of
them are working in an office or organization that had not enough time to relax.
We want to encourage people to love indoor flower planting and more aware
about nature.
1.4 Location of Business
Flores Virent Enterprise is located at Jalan KJ 3 78300 Kuala Sungai Baru,
Melaka. The location is strategic because it is at the center of a housing area
where there are schools.
1.5 Date of Commencement
1st January 2018
13. 13
1.6 Factors in selecting the proposed venture
We have decided to establish the florist’s business due to opportunity and
potential to make profits at the Kuala Sungai Baru area. Besides that, there are
several reasons that attracted us to this business and its location. There are three
reasons why we decided to establish Flores Virent. Firstly, they observed that
people are lacks about indoor flower plantation. As such, this is great opportunity
for his business to be the only choice of customers. Their business will be the only
customers’ option and thus, able to attract many customers.
Secondly, there are many working women in this area. Since the objective
is to focus on indoor plantation, working women are going to be their target
market. This is because the environment in a building is very suitable for the plant
to grow. In the meantime, they also want to encourage nowadays community to
learn how to plant.
Thirdly, the competition among florists in their area is not strong enough.
Therefore, the demand for flowers from the Flores Virent will be higher
1.7 Future prospect of the business
Once the business is financially stable, we plan to open other branches and
expand our business in other housing areas. Besides, we will try to keep the cost
lower and minimum as the cost of maintenance (plantation) is high. We also want
to improve our marketing strategy by attend and participate in expo (FAMA,
MARDI) to give clear information about indoor plantation, do a collaboration
with research and development (R&D), advertise our flowers in magazine,
newspaper and expand our business internationally.
As a conclusion, this business has a good future prospect as many people later
would love to plant and give awareness about nature.
14. 14
2.0 PURPOSE OF PREPARING BUSINESS PLAN
This business purposed is about selling varieties of Holland flowers to Malaysian in a
very affordable and reasonable price. Besides, it will encourage people to be more aware
about nature and started to plant by them.
3.0 BUSINESS / COMPANY BACKGROUND
3.1 Name of Business : Flores Virent
3.2 Business address : Jalan KJ 3 78300 Kuala Sungai Baru, Melaka
Correspondence address : Jalan KJ 3 78300 Kuala Sungai Baru, Melaka
3.3 Telephone number :
3.4 Form of business : Partnership
3.5 Main business activity : Holland florists
3.6 Date of commencement : 1st January 2018
Date of registration : 8 October 2017
3.7 Registration number: : MA0199032-D
3.8 Name of bank : BIMB
Bank account number :
15. 15
4.0 BACKGROUND OF OWNER
4.1 Personal particulars of owner
Name of the owner :
Identity card number :
Permanent address :
Telephone number :
E-mail address :
Date of birth :
Age :
Marital status :
Academic qualifications :
16. 16
4.2 Personal particulars of owner
Name of the owner :
Identity card number :
Permanent address :
Telephone number :
E-mail address :
Date of birth :
Age :
Marital status :
Academic qualifications :
17. 17
4.3 Personal particulars of owner
Name of the owner :
Identity card number :
Permanent address :
Telephone number :
E-mail address :
Date of birth :
Age :
Marital status :
Academic qualifications :
18. 18
5.0 BACKGROUND OF THE PROPOSED PROJECT
5.1 Physical location
Flores Virent is located at Jalan KJ 3 78300 Kuala Sungai Baru, Melaka. Generally,
the premise is a shophouse situated in a housing area with many facilities nearby.
Figure 1.1 Map of the premise
Figure 1.2 Premise of Flores Virent Enterprise
19. 19
5.2 Price of premise
Expenses for the rent cost about RM1000 per month.
5.3 Distance from the source of raw material
We get the raw materials from suppliers through shipping. We get the sources
from Holland Netherlands. The supplier always guarantees that the materials are
not faulty.
5.4 Availability of man power
The business requires skilled workers in terms of promoting and advertising
through social network and in terms of packaging the items.
5.5 Transportation facilities
Customers can reach our premise by bus and taxi. The location is also convenient
for our supplier to deliver the raw materials.
5.6 Distance from customers
Our company is located 500 meters from the nearest schools and housing area,
which makes it very easy to frequent. Customers can always contact the staff
asking for any inquiries, complained, and searching for more details.
5.7 Basic amenities
The staff office is completed with water and electricity supplies, internet
connection, and telephone connection lines. These basic amenities are provided in
order for all workers to perform and accomplish their jobs more efficiently and
productively.
21. 21
6.0 MARKETING PLAN
6.1 Product and service description
We will focus on providing high-quality seeds of Holland flowers to consumers
with outstanding service and establish good relationship between our clients. Our
product is high in quality as we originally bring it from its homeland, Holland,
Netherlands. Flores Virent will select and offer distinctive vases for the
discretionary buyer as well as affordable options for routine purchases. To create
a gallery environment, the Flores Virent store will feature paintings and/or
drawings from local artists.
Flores Virent will contribute to the experience by offering a pleasant shopping
experience through the gallery-like design of its storefront, and its selection of
vases and type of flowers.
6.1.1 Technology
Technology is, of course, vital to the success of Flores Virent. It is
imperative that we stay up-to-date on the latest technological
developments in the business industry. In addition, it is important to know
the possible equipment/s that can be used for the business. Flores Virent
will use sophisticated technology especially for the storing and packaging.
As the product is basically a natural product importance will be given on
culture and production of quality flowers. Sophisticated technology will
also be used in terms of selecting the fertilizers.
6.1.2 Future product and service
Flores Virent plans to venture into creating a new fresh flower
arrangement services to any establishments as well as provide medicines
for plants to avoid pests and any harmful insects to the flowers.
22. 22
6.2 Target Market
The target market of Flores Virent is comprised of the residents of the housing
area in Kuala Sungai Baru, Melaka and workers (sales people, executives,
professionals) in the government and private sectors in those area especially
women. Based on the statistics, population at Malacca is about 872,900 people
and 18% of them are the potential customer in buying flowers and plants.
Area that we serves:
Kampung Permatang
Kampung Ladang
Kampung Teluk Belanga
Taman Seri Kuala
Taman Desa Bayu
Taman Seri Gemalan
Factories located in the area are Chinaware Kelvin Eng Enterprise, Guan
Seng Motor Company, Homewares AFS Berkat Enterprise and Cdo
Homemade Bakery & Enterprise.
Schools and other institutions located in the area are Melaka International
Islamic College of Technology (MIITECH) / (KUIM), Malaysian
Maritime Academy (ALAM), SMK Rahmat, SMKA Darul Falah and
SMK Lubok China.
23. 23
6.3 Market size
Based on the statistics, population at Malacca is about 872,900 people and 18% of
them are the potential customer in buying flowers and plants.
Total Market Size:
872,900 people × 18% = 157,122 people (potential customers)
Market size × Average price (1 set)
= 157,122 × RM35
= RM 5,499,270
24. 24
6.4 Competition
It is very important for Flores Virent to identify our competitors. Competitors
refer to other businesses that offer similar product or service. Based on our
market survey done this year, we found a few competitors for our business,
which are open in the city of Malacca.
Table 6.1 Competitors’ strengths and weakness
Competitor Product Strength Weakness
Iman Amanda Shoppe
(Holland Florist)
23-1, Jalan Inang 2,
Taman Paya Rumput
Utama, Melaka.
Holland fresh
flowers
100% online business
Easier for customer to
buy anywhere,
anytime.
Cheap in price
No face to
face service
Lack in
delivering
management
.
Paradise Flower
House
331, Jalan Ong Kim
Wee, Taman Angkasa
Nuri, 75300 Melaka.
Flowers and
chocolate
Varieties bouquet of
flowers arrangement.
Quite
expensive
price
Voe Florist
574, Jalan Merdeka,
Taman Melaka Raya,
75000 Melaka.
Flowers and
chocolate
Specialist in artificial
flowers
Provide additional
gifts.
High quality
Quite
expensive
price
25. 25
6.5 Market share
The target market for this business is formed mainly by working adult especially
women. We are not able to identify the actual market share for our business as the
data is ambiguous. The market size for flowers at Malacca area is about RM 5,499
270 per year. Our company target is to enter about 15% of the market share in
Malacca area for starting. The estimated market share for 15% is about RM 8 24
890.50.
6.5.1 Market share before entering the market
Table 6.2 Market share before the entry of Flores Virent Enterprise
NAME SHARE PERCENTAGE VALUE
(RM)
Iman Amanda Shoppe (Holland
Florist)
45% 2,474,671.50
Paradise Flower House 35% 1 924 744.50
Voe Florist 20% 1, 099 854.0
TOTAL 100% RM 5,499 270
Figure 6.1 Pie chart before entering the market
Iman Amanda
Shopee
45%ParadiseFlower
House
35%
Voe Florist
20%
MARKET SHARE BEFORE THE ENTRY
OF FLORES VIRENT ENTERPRISE
Iman
Amanda
Shopee
Paradise
Flower
House
26. 26
6.5.2 Market share after entering the market
Table 6.3 Market share after the entry of Flores Virent
Figure 6.2 Pie chart after entering the market
Iman Amanda
Shoppe
40%
ParadiseFlower
House
30%
Voe Florist
15%
Flores Virent
Enterprise
15%
MARKET SHARE AFTER THE ENTERING OF
FLORES VIRENT ENTERPRISE
Iman Amanda Shoppe Paradise Flower House Voe Florist Flores Virent Enterprise
NAME SHARE
PERCENTAGE
VALUE
(RM)
Iman Amanda Shoppe (Holland
Florist)
40% 2,199 708
Paradise Flower House 30% 1, 649 781
Voe Florist 15% 824 890.50
Flores Virent Enterprise 15% 824 890.50
TOTAL 100% RM 5,499 270
27. 27
6.6 Sales forecast
FLORES VIRENT ENTERPRISE sales forecast is estimated as follows:
Table 6.4 Sales forecast for Flores Virent for three consecutive years
MONTH
SALES FORECAST FOR THREE CONSECUTIVE YEAR (RM)
Sales Collection
January 68 740.875
February 68 740.875
March 68 740.875
April 68 740.875
May 68 740.875
June 68 740.875
July 68 740.875
August 68 740.875
September 68 740.875
October 68 740.875
November 68 740.875
December 68 740.875
Total for Year 1 RM 824 890.50
Total for Year 2 RM 907 379.55
Total for Year 3 RM 998 117.505
28. 28
6.7 Marketing strategy & budget
6.7.1 Product strategy and service strategy
Flores Virent Enterprise focuses on providing high-quality products to
consumer with outstanding service. Customization of orders and
specialization of services will create a competitive advantage. Flores
Virent Enterprise is developing the organization by beginning with few
employees to reduce costs. All current employees are very highly
motivated, resulting in a positive and strong company culture. This culture
will carry over to all new trainees, which is a prime objective for the
expansion of Flores Virent Enterprise. The first year of service will be the
most important, as Flores Virent Enterprise plans to establish strong
relations with both suppliers and buyers. These relationships will help us
to grow and evolve in this industry. Our product is far better than those of
our competitors because we provide varieties and the best seeds of
Holland flowers we have from their origin land.
6.7.1.1 Company logo and sticker
Figure 6.3 Logo of Flores Virent
This is our company logo and stickers that will appear on each of
our paper bag. We confident that it will attract the buyers to
remembered us by the logo or stickers
29. 29
6.7.1.2 Company’s product
We provide only the seeds with highly quality guaranteed from
Holland, Netherlands. We also provide the mini pot, import
flower’s nutrient and some others equipment for nursing the
flowers.
F
i
g
u
6
Figure 6.4 A set of items that customer will get
6.7.2 Pricing Strategy
Flores Virent Enterprise imposed prices affordable for the
customers .Being a very new company in this business and that too with a
new territory the company does not know about the pricing strategy of the
competitors. So, at the initial level the company will go for low pricing
strategy. Flores Virent Enterprise sets standard prices for each product line.
These prices are not expected to experience significant change over the
next two years.
6.7.3 Distribution (location) strategy
Our company which is Flores Virent Enterprise located at Jalan KJ 3
78300 Kuala Sungai Baru, Melaka. The location is strategic because it is
at the centre of a housing area where there are schools. Technically, we
are operating in a busy street and high exposure to potential customers.
The place also easy for people to access, and parking is provided.
Seeds Pot Nutrient Hydroponic pot Hydroponic
rope
30. 30
6.7.4 Promotion strategy
Our goal is to gain enough visibility from the public and to promote our
products and services. Initially the company is not interested in any price
promotion activity as the company believes at the initial level it will
hamper the brand equity of the company.
a) Business card (see appendix)
Business card is a great inexpensive marketing tool that we use in our
company. It includes our contact and business location to ease the people
to contact us for any inquiries.
b) Brochure (see appendix)
We are providing brochure to the customer who enter our store as to
introduce them our varieties of Holland flowers and other information
regarding flowers.
c) Social Media (see appendix)
We also promote our business via Facebook, Twitter, and Instagram. This
medium could help in making our company more visible and popular.
d) Gift (see appendix)
We will provide the customer with free mini calendar so that they will be
more motivated in growing their own flowers.
e) Signboard (see appendix)
33. 33
7.0 Operation plan
The operational plan is one of the most important factors to consider in a business. Like
other companies, our target is to ensure that our services are the best in quality and able
to satisfy our customers’ needs and wants. Hence, systematic operational plan is formed
so that our business runs smoothly and achieves its objectives.
7.1 Operational objectives
The objectives of our operational plan are as follows:
a) To ensure the operations of the business runs smoothly
b) To optimize customer satisfaction and fulfill their expectations towards
our ability to provide high quality products and timely service
c) To achieve consistency and stability in our production and services
d) To ensure the quality of our products and services meets the established
standards
e) To ensure our business is profitable and successful
34. 34
7.2 Process planning
Customer enter the premise
Customer choose the flower (seeds) and the vase that they want
Customer then makes an order through the ordering system
Production team received the order from the system and handles
it to packaging team
Meanwhile, the customer waits for several minutes for their
ordered items.
The packaging team sends the ordered items to the cashier to be
delivered to the customer
Customer made payment at the cashier
Figure 7.1 Process flow chart in Flores Virent Enterprise
36. 36
Figure 7.3 2nd floor layout of premise
Ready-to-packitem
Place to pack the item
Storageofseeds
Soil,nutrientfertilizer,vase/pots
Toilets
37. 37
7.4 Production Planning
Production per year:
Average Sale
Price per unit
= 68 740.875
35
= 1 964 units / year
Production per month:
Total Production per Year
12 month
= 1 964
12
= 164 units / month
Production per day:
Total production per month
24 days
= 164
24 days
= 7 units / day
39. 39
7.6 Machines and equipment
Table 7.2 Machines and equipment
7.7 Manpower Planning
Table 7.3 Manpower Planning
ITEMS UNIT PRICE (RM) TOTAL (RM) SUPPLIER
Air conditioner 2 units 1 500 3 000 PANASONIC
Lamp 4 units 120 480 IKEA
Table 8 units 130 1 040 IKEA
Chair 10 units 80 800 IKEA
Racks / Shelves 10 units 100 1 000 IKEA
Refrigerators 1 units 1 000 1 000 PANASONIC
Vase / Pots 80 units 10 800 VIVA HOME
Desktop PC 2 units 1 800 3 600 ASUS
TOTAL RM 11 720
POSITION NO. OF
STAFF
MONTHLY
SALARY
(RM)
EPF
CONTRIBUTION
11% (RM)
SOCSO
2.5 %
(RM)
AMOUNT
(RM)
Cashier 1 900 99 22.5 1021.5
Order 1 900 99 22.5 1021.5
Packaging 1 900 99 22.5 1021.5
TOTAL 3 RM 2 700 RM 297 RM 67.5 RM 3 064.5
40. 40
7.8 Overheads Requirement
Table 7.4 Overheads Requirement
No. ITEMS COST (RM) AMOUNT (RM)
1. Insurance 300 300
2. Fire extinguisher 35 x 2 unit 70
TOTAL RM 370
7.9 Location
A strategic location is the most important thing that we should be considered.
Without strategic location, we will counter problem in the future even though our
plan is strategic. A strategic location that been chosen will determine whether the
business can operate for long time period or not. Thus, Flores Virent Enterprise
will be located at Jalan KJ 3 78200 Kuala Sungai Baru Melaka. In our operation
plan, the choice of our location is depend on the following factors:
7.9.1 Distance from customer
In our business, we choose this location because it situated in nearby town
and housing. The location also near the main road also be important factor
from transportation and many tourists can come at our place.
7.9.2 Facilities
Our business location also has facilities in term of parking park, sources of
water, electricity, communication facilities and also financial institution.
7.9.3 Security
Security is very important in our business. The location of our business is
very strategic because our premise is in the town. Besides, our location is
near to the police station and public area.
41. 41
7.10 Business and operation hours
Flores Virent operates 6 days per week. Flores Virent will be close only on
Sunday.
Our company will give 16 days annual leave for every employee. The workers get
one day off and follow the rotation that company gives so they can spend time
with their family and rest after tiredness working for 6 days.
Table 7.5 Operation hours for Flores Virent Enterprise
Day Time
Monday, Tuesday, Wednesday, Thursday,
Friday, Saturday
9.00 am – 9.00 pm
Sunday Closed
7.11 License, permits and regulations Required
Business act 1956
Our Flores Virent registered to Companies Commission of Malaysia (SSM) as
stipulated in the Act 197 Registration of Business Act 1956.
Requirements to register a sole proprietorship or partnership:
a) Ownership must be a Malaysian Citizen or permanent resident of Malaysia
b) Aged 18 years old and above
c) Business must be carried out in Peninsular Malaysia or federal Territory of
Labuan.
An application under subsection (1) shall be made in the prescribed form and
shall state:
a) Name of the business
b) Nature of the business
42. 42
c) Date of commencement of the business
d) Address of the place of business in the case of a business having more than one
place business, the address of the branches
e) The particular of the partnership agreement
f) In respect of the associate of the business, their full names, position hold and
dates of entry into business’
g) Such other as the register may require
44. 44
7.13 Implementation Schedule
Table 7.7 Implementation schedule Flores Virent Enterprise
Jan Feb Mar Apr May June July Aug Sept
Incorporation of business
Application of permits
Searching for business premise
Renovation of premise
Procurement of machines and
raw materials
Recruitment of labors
Installation of machines and
equipment
Launch of premise
Figure 7.4 Gantt chart of Implementation schedule for Flores Virent Enterprise
Activities Deadlines Durations
Incorporation of business Jan-Mac 2018 3 months
Application of permits Jan- April 2018 4 months
Searching for business premise Feb- April 2018` 3 months
Renovation of premise April 2018 1 month
Procurement of machines and
raw materials
April- June 2018 3 months
Recruitment of labors June 2018 1 month
Installation of machines and
equipment
July 2018 1 month
Launch of premise August 2018 1 month
46. 46
8.0 Organizational/ Administration Plan
8.1 Organization’s vision, mission and objectives
The management plan section explains how the business will be managed in order to
ensure the objectives of the business can be achieved. It is the plan that describes the
contributions of the management team and staff to the bottom line, setup plans and
strategies of the business, and the division of work among them according to skills
and qualification.
8.1.1 Vision
Flores Virent wants to connect people to the world of plants, fostering
delight and curiosity about indoor plantation while inspiring an
appreciation and sense of stewardship of the environment.
8.1.2 Mission
Flores Virent Enterprise will provide the customers with high quality
seeds of Holland flowers at a fair price and strive to match and surpass the
expectations that our customers expect from us and our products. Flores
Virent Enterprise will not compromise on quality and will never use
inferior product for the sake of price.
8.1.3 Objectives
a) To achieve consistency in our company’s cash flow
b) To ensure that we have good cash flow and a smooth running
business
c) To offer reasonable price to customers
d) To achieve monthly profit targets
e) To ensure the order is completed on time
47. 47
8.2 Organizational chart
Figure 8.1 Organizational Structure of Flores Virent Enterprise
SHADINA SHAH
GENERAL MANAGER / ADMINISTRATIVE / FINANCIAL MANAGER
OPERATION / PRODUCTION MANAGERMARKETING MANAGER
PACKAGINGCASHIER ORDERING
48. 48
8.3 Manpower Planning
Table 8.1 Position and number of personnel in Flores Virent Enterprise
Position Number of personnel
General Manager / Administrative / Financial Manager 1
Marketing Manager 1
Operation / Production 1
Workers
Cashier
Ordering
Packaging
3
TOTAL 6
8.4 Schedule of tasks and responsibilities
Table 8.4.2 describes the tasks and responsibilities of every position. The
following functions and responsibilities have been identified and will be delegated
to the respective individual to ensure the smooth of operation business.
49. 49
Table 8.2 Schedule of tasks and responsibilities
Position Job description
GENERAL MANAGER /
ADMINISTRATION MANAGER /
FINANCIAL MANAGER
Responsible for overseeing all
administrative functions in business.
Ensure all activities to run smoothly using
the proper procedure.
Leading and directing employee.
Prepared cash flow, trading profit and
loss account and also the balance sheet of
the company.
To manage the flow of organization
financial from suffered loss.
To handle the administration, operations
and marketing expenses not over the
budget.
To ensure the organization have
financially stable.
Responsible to the entire activities that
involves the company finance.
Organize and supervise other office
activities.
Manage schedules and deadlines.
MARKETING MANAGER
To identify the marketing target, current
market and determine the strategy that
suitable to be used.
To prepared marketing analysis and
observe the strategic location to expand
the business.
Doing consistent promotions to ensure
50. 50
the sales reach the objective goals.
Analyze market trends and recommend
changes to marketing business
development strategies
OPERATION / PRODUCTION
MANAGER
Ensure all workings are manufactured in
correct, cost effective and timely manner
in alignment with specifications and
quality requirements.
To ensure the smoothly flow of stock
runs without having any shortage of
stock.
To ensure the quality of product.
Controlling the operation includes the
welfare and safety of workers.
Contribute towards the achievement of
company’s strategic and operational
objectives
To ensure all stock and equipment is
sufficient.
Overseeing inventory, distribution of
goods and facility layout
CASHIER To serve customers and carry out
replenishment, merchandising and stock
control activities to deliver an every little
helps shopping trip for our customers
Ensure store availability measure is
achieved and customers can get what they
want
To coordinate product packaging
51. 51
PACKAGING
development activity involving internal
and external parties
Managing all packaging innovation,
labeling and improvement
Work on material and ingredients
sourcing when require
ORDERING
Verify and upload daily auto
replenishment order
Responsible for updating data and system
maintenance is accurately maintained
Responsible to manage, monitor,
coordinate and ensure inventory is kept at
optimum level
Identifies and escalates root causes of
over / under stocks for various products’
categories, and generates solutions / work
together with respective department to
overcome the issues
Assist stores in managing and optimizing
aged, returns and excess stocks
53. 53
8.6 Schedule of remuneration
For our company, we have chosen the EPF scheme to be given to all employees.
Table 8.6.1 illustrates the remuneration plan for each employee in Flores Virent
Enterprise.
Table 8.3 Remuneration plan
POSITION
NO. OF
STAFF
MONTHLY
SALARY
(RM)
EPF
CONTRIBUTION
(11%)
(RM)
SOCSO
(2.5%)
(RM)
AMOUNT
(RM)
General Manager /
Administration /
Financial Manager
1 1 800 198 45 2 043
Marketing
Manager
1 1 500 165 37.5 1 702.5
Operation Manager 1 1 500 165 37.5 1 702.5
Total 3 RM 4 800 RM 528 RM 120 RM 5 448
8.6.1 Salary
Basic wage or salary will be paid in cash as stipulated in the employment
contract. Wages will be paid once a month to the workers and payment
will be paid at the end of the month. The salary will be debited to their
accounts on the 27th of every month. Any increment in wages will be
decided by the management. Salaries will be given to all employees based
on their qualification and working experience.
54. 54
8.6.2 EPF and SOCSO contributions
EPF contributions will be deducted from all workers’ salaries. The
company will also contribute to SOCSO which is 2% of the workers basic
salary.
8.6.3 Working hours
Every employee who works in Flores Virent Enterprise has to work
starting from 9.00 a.m. until 9.00 p.m. every Monday to Saturday. Lunch
hour is from 1.00 p.m. until 2.00 p.m.
8.6.4 Medical allowance
Medical allowance will be provided in the event of illness.
8.6.5 Maternity benefits
Female employees are entitled to 60 days maternity leave for every
confinement period. Allowance is not given to employees who have more
than five surviving children.
8.6.6 Insurance
Insurance coverage will be given to all workers, the premises or buildings
bought or rented as well as all means of transportation.
8.6.7 Bonus
Bonus will be paid depending on the tailor’s job performance.
8.6.8 Compensation and benefits to workers
Compensation and benefits are given to workers to improve their
performance and job satisfaction.
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8.6.9 Holidays
All workers are entitled to have at least one rest days that is on Sunday
every week.
8.6.10 Annual leave and sick leave
Each worker will be given an annual leave of 16 days. In terms of sick
leave, the medical certificate has to be approved by a registered medical
practitioner. If an employee is hospitalized, he is entitled to 60 days of
sick leave whereby his wages will still be paid. But if the employee is
hospitalized more than 60 days, his wages will not be paid.
8.7 List of Office Equipment
Flores Virent Enterprise has bought office equipment and supplies as listed in
table 8.4
Table 8.4 List of office equipment
ITEMS QUANTITY PRICE PER
UNITS
(RM)
TOTAL COST
(RM)
SUPPLIER
Desktop PC 2 units 1 800 3 600 ASUS
Telephone 1 unit 600 600 PANASONIC
White Board 1 unit 120 120 EASY WRITE
Photostate machine 1 unit 1 000 1 000 RICOH SP
Small Dustbin 3 units 5 15 IKEA
TOTAL RM 5 335
56. 56
8.8 List furniture, fixture and fitting
Table 8.5 List of Furniture, Fixture and Fitting
ITEMS QUANTITY PRICE PER UNITS
(RM)
TOTAL COST
(RM)
SUPPLIER
Office manager table
and chair
3 set 500 1 500 IKEA
Air Conditioner 1 unit 1 500 1 500 PANASONIC
First aid kit 1 unit 40 40 DEMC
Storage cabinet 1 unit 1 200 1 200 IKEA
Sofa & Coffee Table 1 set 2 000 2 000 IKEA
Lamp 2 units 120 240 IKEA
TOTAL RM 6 480
8.9 Pre-operational budget
Table 8.6 Pre-operational Budget
ITEM RM
Business license 250
Business registration 60
Fire insurance 500
TOTAL RM 810
60. 60
9.0 FINANCIAL PLAN
Financial plan is important for the overall success of Flores Virent Enterprise because it
helps to:
a) Determine the size of investment that is the project implementation cost
b) Identify and propose the relevant source of finance
c) Ensure the initial capital is sufficient
d) Appraise the viability of the project before actual investment is committed
e) Guide the implementation of plans
74. 74
10.0 CONCLUSION / SUMMARY AND RECOMMENDATION
Through the business, we are able to answer the raising question in the beginning about
the feasibility of business. The market opportunities are very encouraging. The
management team complement each other’s skills. The only grand challenge for Flores
Virent is to differentiate itself from existing tough competition. The business will
continuously perform the business strategies, especially on the marketing aspects to
ensure that the business is well known to the customers and we hope to build a loyal
customer.
