TECHNOPRENEURSHIP- THE BUSINESS PLAN

MULTIPURPOSE LAMP CLOCK JAR (FAIRY LAMP)

LECTURER : SIR ABDUL RAZAK BIN HAJI MOHD YUSOFF

SECTION : L01-T2

GROUP MEMBERS:
1. GENERAL MANAGER
MUHAMMAD ANAS BIN MUHAMAD AZMI (55213114385)

2. ASSISTANCE MANAGER
NABILAH BINTI NORDIN (55213114016)

3. PRODUCTION EXECUTIVE
SITI HAJAR MOHAMED (55213114225)

4. FINANCIAL EXECUTIVE
ANIS IZZATI BINTI MOHD KELANA (55213114022)

5. ADMINISTRATION EXECUTIVE
MUHAMMAD RUSYDAN HAZIQ BIN HASYIM (55213114111)

6. MARKETING EXECUTIVE
NORZAITUL HANIS BINTI KASIM @ MANSOR (55213114104)

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TABLE OF CONTENT

1.0 EXECUTIVE SUMMARY ................................................................................................4

2.0 INTRODUCTION........................................................................................................... 5-6

3.0 PURPOSES OF BUSINESS PLAN ...................................................................................7

4.0 BACKGROUND OF THE BUSINESS .............................................................................8

5.0 BACKGROUND OF PARTNERS .............................................................................. 9-14

6.0 ADMINISTRATION PLAN ............................................................................................15

6.1 Introduction to the organizations.....................................................................................15

Mission ..................................................................................................................................

Vission ...................................................................................................................................

6.2 Business ProjectBackground ..........................................................................................16

6.3 Business Address.................................................................................................................

6.4 Location of the Business .....................................................................................................

6.5 Organization Chart ..............................................................................................................

6.6 List of Administration Personel ..........................................................................................

6.7 Schedule of Task and Responsibilities ................................................................................

6.8 Schedule of Remuneration ..................................................................................................

6.9 List of Office Equipment.....................................................................................................

6.10 Administration Budget ......................................................................................................

6.11 Organizations Budget ........................................................................................................

Table 6: Table of Organizations Budget ...................................................................................

7.0 THE MARKETING PLAN ..................................................................................................

7.0 Summary .............................................................................................................................

7.1Product Description ..............................................................................................................

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 7.2 Market Analysis and Target Market...............................................................................25

7.2.1 Target Market................................................................................................26--27

7.5 Sales Forecast ......................................................................................................................

8.0 OPERATIONAL PLAN .......................................................................................................

8.1 Process Flow Diagram for the Making of Aromatherapy Oil .............................................

8.2 Process Description for Making of Aromatherapy Oil

8.3 Units Output of Operation..............................................................................................36

8.4 Operation Organization ...................................................................................................37

8.5 Operation Budget...........................................................................................................39

9.0: FINANCIAL PLAN .............................................................................................................

9.1 Introduction....................................................................................................................41

9.2 Objectives.......................................................................................................................41

9.3 Project Implementation Cost ...............................................................................................

9.4 Operating Budget ............................................................................................................43

9.5 Marketing Budget ...................................................................................................... 44-45

10.0 JUSTIFICATION ...............................................................................................................

11.0 CONCLUSION...............................................................................................................47

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LIST OF TABLES

Table 1: Administration Personal Tables ...................................................................................

Table 2: Schedule of task and responsibilities ............................................................................
Table 3: Schedule of Remuneration............................................................................................
Table 4: Table of list of Office Equipment..................................................................................
Table 5: Table of Administration Budget....................................................................................
Table 6: Table of Organizations Budget .....................................................................................

LIST OF FIGURES

Figure 1:UniKL MICET Malacca .............................................................................................

Figure 2: Location of UniKL MICET .......................................................................................
Figure 3 Process flow diagrams for production of Spackle Glass Cleaner ...........................
Figure 4 Example of Sparkel Glass Cleaner.............................................................................
Figure 5 Operation Organization Chart ...................................................................................

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 CHAPTER 1
EXECUTIVE SUMMARY

The company was named Lullaby Electrical and Enterprise has been
established on 2nd November 2016 and target to be well known around Malaysia because of
the product named Fairy Lamp as multipurpose lamp clock jar. The business was focused to
the same area of head office and manufacturing place. The head office and manufacturing
factory was located at MP 859, Jalan 4, Taman Melaka Perdana, 78000 Alor Gajah, Melaka.
To ensure high and good quality of product, consistency and flexibility of supply and online
marketing and transportation of product.The manufacturing of this Fairy Lamp Clock Jar
used four materials such as glass jar, quartz clock mechanism, light bulb and aromatherapy
oil. For aromatherapy oil, there are several steps to process it. 150mL of aromatherapy oil for
one unit of Fairy Lamp Clock Jar. The product is applying Green Technology which we used
zero-chemical and some of recycle things and basically it can be use in many ways or other
word is multipurpose product. It is designed especially for most of students suffer of tiredness
and fatigue due to lack of sleep and busy life style. With hectic schedule of learning and other
things to do, most of students suffer of tiredness and fatigue due to lack of sleep and busy
lifestyle. The uniqueness and advantages of Fairy Lamp compared to others are low cost and
our product is suitable for all type of glass jar or plastics jar and it can also be used for
multipurpose lamp clock jar for example lamp, clock, aromatherapy scent and home
appliances beneficial towards human health, the plan to sell these home appliances is not
limited towards students only but it is worldwide and can be used for anybody with different
background of social or work environment. Currently, our team are trying to make as a much
as profit and find the opportunity to expand our business. Lastly, our company is looking
forward to improve the quality from time to time for customers satisfaction in order to
uphold the companys mission and to become first customers choice brand in constant
evaluation that satisfies the need of end-customers.

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 CHAPTER 2

INTRODUCTION

Lullaby Electrical Enterprise is a new company that will provide high quality
of home appliances and provides healthy aromatherapy services to its clients. Lullaby
Electrical Enterprise is scheduled to begin operations on October 20, 2016. Lullaby Electrical
Enterprise will be a partnership, owned and operated by Norm Johnson and Rupert Smith.

The selection of name for Lullaby Electrical Enterprise based on agreement of

partners consists of six members of General Manager, Assistance Manager, Administrative
Manager, Operation Manager, Marketing Manager and Finance Manager during first
brainstorming. The members are Muhammad Anas Bin Muhamad Azmi, Nabilah Binti
Nordin, Siti Hajar Mohamed, Anis Izzati Binti Mohd Kelana, Muhammad Rusydan Haziq
Bin Hasyim and Norzaitul Hanis Binti Kassim @ Mansor

The business was focused to the same area of head office and manufacturing place.
The head office and manufacturing factory was located at MP 859, Jalan 4, Taman Melaka
Perdana, 78000 Alor Gajah, Melaka. To ensure high and good quality of product, consistency
and flexibility of supply and transportation, Lullaby Electrical and Enterprise Enterprise
manufactures 100% of the product in own manufacturing area.

The initiate for Lullaby Electrical Enterprise to produce a high quality and healthy
home appliances is because of the observation towards students nowadays. With hectic
schedule of learning and other things to do, most of students suffer of tiredness and fatigue
due to lack of sleep and busy lifestyle. Hence, Lullaby Electrical Enterprise home appliances
provides an aromatherapy which can increase the oxygen level in the house and provide a
good healthy lifestyle for students.

Lullaby Electrical Enterprise will target small to medium sized companies and
government organizations within around of Malaysia including Sabah and Sarawak state.
Lullaby Electrical Enterprise will seek major contracts with small and medium sized firms.

Those contracts will be served with the assistance of strategic alliances, both with
other home appliances companies such as Vend O Matic Sdn Bhd and Arc Machinery
Malaysia Sdn Bhd, as well as other professional groups.

6
 This will give the company the flexibility it needs to successfully secure and complete
home appliances production with varying elements. By using existing contracts and joint
ventures with other consulting firms, Lullaby Electrical Enterprise is in a position to corner
the home appliances market in Southern Asian Region. By year 3, Lullaby Electrical
Enterprise will expand to other markets such as East Asian Region such as South Korea,
China and Japan.

Since Lullaby Electrical Enterprise home appliances beneficial towards human

health, the plan to sell these home appliances is not limited towards students only but it is
worldwide and can be used for anybody with different background of social or work
environment.

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 CHAPTER 3
PURPOSES OF BUSINESS PLAN

This business plan is prepared by ProtactWorld Enterprise for these purposes:

1. To serve as an Action Plan

2. To serve as a Road Map
3. To serve as a Sales Tool

1) Action Plan
The business plan would help staff or workers of our company as a guideline for any actions
besides acts as a dynamic blueprint for running and expanding the business today as well as
in future. This business plan contains all of important information, manpower and estimation
of financial for our business. Apart from that, the business plan is totally will remind our
staffs on how and why are we started the business, what are the main goals and how does the
business will affect our companys vision.

2) Road Map
The business plan can be a valuable tool to help our staff to keep on track and moving in the
right and correct direction. Besides, it would help staffs to keep focused on our main goal of
business. This business plan also can serve us to understand our vision, suppliers, customers,
employees, and cliques.

3) Sales Tool
Our staff will probably need outside financing to start the business and this is a right tool that
we need to convince investor to come on board. Furthermore, we also need concessions from
the suppliers or customers. Thus, this business plan can help our staff to attract more people
to invest. Last but not least, this business plan can serve as attractor to let people more close
to us on the benefits of proceeding our businesss concept.

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 CHAPTER 4
BACKGROUND OF THE BUSINESS

1. Name of the Company : Lullaby Electronic Sdn Bhd

2. Business Address :
3. Correspondence Address :
4. Contact Number :
5. Form of Business : Selling a multipurpose clock jar
6. Main activity : Producing, packaging and marketing
multipurpose jar with an aromatherapy
scent.
7. Date of Business Commencement : 2nd November 2016
8. Date of Business Registration : 2nd November 2015
9. Registration Number SSM : MA0215506-A
10. Name of Bank :
11. Bank Account Number :
12. Percentage of Bumiputeras share : 23.5 %

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 CHAPTER 5
BACKGROUND OF PARTNER
i. General Manager

Shareholder Name : Muhammad Anas Bin Mohamad Azmi

Ic Number :

Address :

Tel :

E-Mail :

Date Of Birth : 16 May 1995

Age : 22

Marital Status : Single

Academic Qualification : Sijil Pelajaran Malaysia (Spm)

Skills : i am very good with it technology and i have an excellent leadership value

Experiences : I use to help my father, fixing the electronics.

Percentage of Share: 30%

Shareholders status: Bumiputera

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 ii. Assistance Manager

Shareholder Name : Nabilah Binti Nordin

Ic Number :

Address :

Tel :

E-Mail :

Date Of Birth : 14 June 1995

Age : 22

Marital Status : Single

Academic Qualification : Sijil Pelajaran Malaysia (Spm)

Skills : Has an excellent skills with customer and friendly.

Experiences : Have an experience working at 7eleven for several month.

Percentage of share: 20%

Shareholders status: Bumiputera

iii. Production Executive

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Shareholder Name : Siti Hajar Mohamed

Ic Number :

Address :

Tel :

E-Mail :

Date Of Birth : 18 November 1995

Age : 22

Marital Status : Single

Academic Qualification : Sijil Pelajaran Malaysia (Spm)

Skills : i can sew and cook. I am also very friendly with customer.

Experience : i have an experienced of working in a book store

Percentage of Share: 20%

Shareholders status: Bumiputera

iv. Financial Executive

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Shareholder Name : Anis Izzati Binti Mohd Kelana

Ic Number :

Address :

Tel :

E-Mail :

Date Of Birth : 4 October 1995

Age :22

Marital Status : Single

Academic Qualification : Sijil Pelajaran Malaysia (Spm)

Skills : communication and hands on application

Experience : i have an experienced working in an IT shop

Percentage of Share: 10%

Shareholders status: Bumiputera

v. Administration Executive

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Shareholder Name : Muhammad Rusydan Haziq Bin Hashim

Ic Number :

Address :

Tel :

E-Mail :

Date Of Birth : 27 December 1995

Age : 22

Marital Status : Single

Academic Qualification : Sijil Pelajaran Malaysia (Spm)

Skills : Can Play Sport And E-Sport

Experience : No Experience

Percentage of share: 10%

Shareholders status: Bumiputera

vi. Marketing Executive

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Shareholder Name : Norzaitul Hanis Binti Kasim@Mansor

Ic Number :

Address :

Tel :

E-Mail :

Date Of Birth : 9 April 1995

Age : 22

Marital Status : Single

Academic Qualification : Sijil Pelajaran Malaysia (Spm)

Skills : Self-Defense Arts And Shooting

Experriences : National Level

Percentage of share: 10%

Shareholders status: Bumiputera

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 CHAPTER 6
ADMINISTRATION PLAN
6.1 Introduction to the organizations
i. Company Name

Our company was given by the name of Lullaby Electronic Sdn.Bhd. Why we choose lullaby
electronic? We chose lullaby electronic because our product is a 3 way lamp. Our three way
lamp can be used as a sleep lamp, a clock and gives out aromatherapy scent. Thus, by using
our product it can help you to sleep better and relax as if you are singing a lullaby.

ii. The primary objectives of Lullaby Electrical Enterprise are to:

- Obtain commercial financing of RM20,000 to cover start-up costs and initial operating
expenses;
- Generate a net profit of RM25,000 in the first year of operations by developing a strong
client base and keeping overhead costs to a minimum;

- Cultivate a healthy environment towards people and increase productivity in clients

lifestyle.

iii. Mission
The companys mission is to produce product that satisfies the needs of customers and
develop the product all over Malaysia. In addition, our company mission also wants to create
a creative and innovative product to build a strong brands in Malaysia.

iv. Vission
The vision of the company is to be a company that has good market and produce a high
quality product that will satisfies customers need. Lullaby Electrical Enterprise will be
maintained the quality, creativity and affordable price for the product and gives awareness
towards human health.

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6.2 Business Project Background

The nature of our business is to create a DIY electronic product that is not only
function well in our daily routine but is also healthy. The name given for our product is fairy
jar. This special jar contains three function which are functioning as a sleep lamp, a clock
and as a storage for aromatherapy oil. Our product is made homemade and is very unique.
The material needed to create our fairy jar is mainly a recycle product. The numbers for the
clock was also made by hand. So it gives a sentimental value to every each pattern on the jar.
We also have created an aromatherapy oil that has many benefits. It is not only gives out
aromatherapy scent but it is also functioning to eliminate bacteria, unpleasant odours of any
kind such as cooking odours, decomposes second hand smoke and improve the overall air
quality, leaving you refreshed & rejuvenated. It is also works as an insect repellent such as
dust mites, mosquitoes, fleas, ants & other insects.

Our aromatherapy oil has a purifying power that eliminates odour causing molecules in the
air through the process of catalytic oxidation and by that increase the oxygen level. The oil
contain a ceramic catalytic burner with platinum around its outer edge. The odour-causing
molecules are actually attracted to the heat generated by the catalysis and then broken down
(preventing it from combining). It is also perfuming your surrounding with a relaxing scent.
Only by burning the oil for about 5 minutes, their fragrance will occupied your house and last
for hours.

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6.3 Business Address

6.4 Location of the Business

6.5 Organization Chart

18
6.6 List of Administration Personel

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 Table 1: Administration Personal Tables

Position Number of Personal

General Manager 1
Assistance Manager 1
Financial Executive 1
Production Executive 1
Administration Executive 1
Marketing Executive 1

6.7 Schedule of Task and Responsibilities

Table 2: Schedule of task and responsibilities

Position Task Responsibilities

Manager A person who is planning Responsible in managing
the strategies and policies whole organization and
for the effective initiate to improve the
organizations process of Fairy Lamp
Clock Jar

Assistance Manager Ensure that all departments Assure the product is

participate well with their consistently presented in
own role and responsible. strong, positive image to
customers.
Given direction and
leadership toward the
organzations mission,
strategy, goals and
objectives.
Financial Executive Presenting business budget Responsible for
every year. budgeting, projecting,

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 Managing the employee cash flows and
salary determining how to
Prepare a ledger to invest and finance
analyzed the profit and projects.
loss of company, Responsible for
providing financial
consultations and support
to clients.
Production Executive Make sure the production Responsible to check the
runs smoothly production achieve the
Make sure the product has target market demand.
good quality Approve the product
before released to the
customers
Operation Executive Identify and list all the raw Able to face risk
material required to runs regarding the quality of
the product the product.
A person who is Responsible for
responsibility of ensuring performing a variety of
that minimum resources. duties.
Plant out the overall
operations of the company
Marketing Executive A person who are Supervising employees.
responsible to plan a Identify potential markets
market strategy to make for their company.
sure the product were Develop pricing strategy
develop.
Make annual budget
Marketing
Administration Executive Manage major asset of the Communicating with
production and target audiences and
administration departments managing customers.
in an organizations.

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6.7 Schedule of Remuneration

Table 3: Schedule of Remuneration

Position No Monthly EPF SOCSO (2%) Total Amount

Salary (RM) Constribution (RM) (RM)
(12%)
Manager 1 5000 600 5600
Assistance 1 3700 444 4144
Manager
Financial 1 3500 420 3920
Executive
Productions 1 3500 420 3920
Executive
Operation 1 3500 420 3920
Executive
Marketing 1 3000 60 3060
Executive
Staff 6 1500 180 25.35 1705.35

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6.8 List of Office Equipment
Table 4: Table of list of Office Equipment

No Items Quantity Price/unit (RM) Total cost (RM)

1 Office furniture 4 set 2000 8000
2 Fax machine 1 set 500 500
3 Computer and software 4 set 2000 8000
4 Scanner 1 set 900 900
5 Air Conditioner 2 set 2000 4000
6 Advertisement board 1 set 1000 1000
TOTAL 22400

6.9 Administration Budget

Table 5: Table of Administration Budget

Descriptions Fixed Assets Monthly Expenses Other Expenses

Expenses (RM) (RM) (RM)
Building 25000
Furniture & Fitting 12000
Rental 4500
Utilities 2050
Salary 34796.10
EPF & SOCSO 3596.10
Rental Deposit 300
Utilities Deposit 250
Stationary 900
Business Registration 70
Total 37000 26959.35 1520
Total 65479.35
6.10 Organizations Budget
Table 6: Table of Organizations Budget

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 Estimated
Capital Expenditure
economic
life (years)

Land & building None

25,000

Furniture &Fittimg
12,000 5

Total
37,000

Working Capital (monthly)

Rental
4,500

Utilities
2,050

Salary 34796.1

EPF & SOCSO

3,596

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Total
44,942

Other Expenditure (one off/annually)

Stationary 900

Utilities & Rental Deposit 550

Business Registration 70

Total
1,520

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 CHAPTER 7
THE MARKETING PLAN

7.0 SUMMARY
Marketing plan can be defined as outlines the specific actions entrepreneur intend to
carry out to interest potential customers and clients in our product and persuade them to buy
the product offered. Our marketing plan refers to the development phase of a month, of the
aromatic clock, in the Malaysia market. With quantitative and qualitative methodology of
analysis, we have created an operative and strategic plan that will go along with the product
towards a prosperous stage of maturity.

7.1 Product description

Name of product: Fairy Lamp Clock Jar

Product description: For our lamp, we have upgraded the product so that it will be more
attractive and unique. Our product is an aromatic lamp clock jar that comes in many aromas
for example lavender, lemon, rose, and many more. Besides that, this aromatic lamp clock jar
is beneficial towards human health which can increase the oxygen level in a room. Aromatic
lamp clock jar have many design in order to attract the interest from the customer. In creating
the aromatic lamp clock jar the best material was used in our product like jar, clock, glass
colorings, aromatherapy oil, lamp, electrical circuit, and cotton wool.

7.2 Market Analysis and Target Market

Today clock have become a global phenomenon among the people. It can be used by
all whether the person is a child or elder. Nowadays there are a lot of clock design that have
been made in order to attract people to come and have it. Besides that clock is easily to used
and provides punctuality toward clients. For example it can be used at room area, in the car,
at the bathroom and many more.

Implemented for this phenomenon, we have upgraded the clock so that it will become
more attractive. For our product which is not ordinary clock, the main beneficial part is the
aromatherapy. The aromatherapy was done by ourselves and the process is done thoroughly
so that the oxygen can be release even after the oil was burn. They come in many aromas for
example lemon, lavender, rose and many more. On top of that, to gain more interest among
the people, many designs have been created to attract them to have the aromatic lamp clock

26
jar. Besides that, the price of this product is affordable. Thus, it can be easily to get place in
the market.

For our expected market for our product are about 100 units per month of aromatic
lamp clock jar to be sold in the first month. This approximation is based on our study of the
clock market. This is because the clock market target, we believe that the investigations that
we have carried out describe that the product is suitable for everyone. Therefore we have
categories it into three which is the first one is trendy, second one is functional and lastly is
for the sceptic.

Trendy: Individuals who follow fashion trends, represented by 69%. This category
represents the largest share of the target, represented by 69% and this justifies the
position that we will give to the final product.
Functional: those that purchase out of necessity, represented by 10%. It may seem
very low, but we must consider the fact that people do not allow the purchase to be
influenced by fashion.
Sceptics: those who doesnt know why they have bought it, represented by 21%

7.2.1 Target Market

Table 7.1: The market size

NUMBER OF TARGET MARKET

TARGET MARKET
(MONTHLY)

Functional customer 10%

Trendy customers 60%

Sceptics customer 30%

Total 100%

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 Sceptic Trendy
customer customers

Functional
customer

Figure 7.1 List of target market

7.3 Market Size

Total customer (1st month) = 150 people

Estimated demand = 100 people

Percentages buyer (%)-estimated = 50%

Target market = 100 people

Market Share = 15%

Each customer buy 4 units/month at prices of RM 17/unit

Market size = 100 people x 4 units x RM 17/units

= RM 6800

Sales per month = RM 6800 x 15%

= RM 1020

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7.4 Competitors
Competitors is refer to other businesses that offer similar product, substitute or
alternative products or services to the same target market. We have identify some of our
competitors in order to know whom our business is sharing market with and to develop
appropriate marketing strategies to compete with our rival. Apart from that, we also need to
analyse the strength and the weakness of our competitors in term like the prices, the material
used and many else. The list below shows our competitors who in the same area with their
strength and weakness in the market:

Table 7.2: Competitors Who in the Same Area with Their Strength and Weakness in
The Market

No Company name Strength Weakness

- Many ways to sell their clock. - There is not much

Malizs clock shop Eg Instagram, shop design
1
- The prices of the clock is - The material used is
affordable not best quality.

- There are many design of clock - The clock is

expensive.
Diamond home - Their service is good
2
appilances shop - Their service is
- Many ways to sell their clock.
slow.
Eg Instagram, shop

-The material used is best quality -Terrible service

3 Others shop -The prices is low -There is not much

design

- The material used is best quality -New in the Market

- Many ways to sell their clock.

Eg Instagram, shop
4 Fooo design
- The prices of the clock is
affordable

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7.5 Market Share
Market share is refer to the portion of the market that the business can control after
taking into consideration market size and the competitors position the same market. Our
company which is Fooo design has identified 3 main competitors which are Malizs clock
shop, Diamond home appilances shop and other shop that sold clock. Each of the compatitors
control a percentages of the market as shown below.

Table 7.3: Market share before entry of Fooo design

Competitor % Market share Market size

Malizs clock shop 20% RM 2400.00

Diamond home appilances

60% RM 3500.00
shop

Other shop 20% RM 1000.00

Total 100% RM 6900.00

After analyzing the competitors strength and weakness, our company confident to control
about 26% of the market. This is based on our strength in term of the prices, the design, the
material used in order to gain the interest of the customer.

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 Table 7.4: Market share after entry of Fooo design

Competitor % Market share Market size

Malizs clock shop 15% RM 1290.00

Diamond home appilances

40% RM 3500.00
shop

Other shop 20% RM 1720.00

Fooo design 35% RM 3000.00

Total 100% RM 8600.00

Before entering the business, Diamond home appilances shop took about 60% of the
market share followed by malisz clock and other shop with 20% and 20% respectively.
Estimated market share for Fooo design is 35%. This will mean the existing competitors
(Malizs clock shop, Diamond home appilancesshop and other shop that sold clock) will lose
of some their market after the entry of Fooo design.

7.6 Marketing Strategy

In the business, to start a company is not an easy task. This is because we have to
make sure that the operation of our business run smoothly until we reach our business goals.
In order to make sure that our business to continue to operate, marketing strategies are
important to attract customers to continue to spend their money at our shop.

31
 As our business, our main priority is to give satisfaction to our customers while to
gain their trust with our best service. By doing so, we will able to gain our customer trust and
therefore they would come again to our shop to buy our aromatic clock. Our marketing
strategies consist of 4Ps which are:

1. Price

2. Place

3. Promotion

4. Sales promotion

7.6.1 Prices
Pricing is the process of determining the value of the product to the customer at
particular amount of money in term of ringgit Malaysia and cents. Once services have been
given, the values of the services and product need to be determined. The prices strategy is
important to make sure that the company would provide a reasonable prices to the customer
while to ensure that company can gain profits from the sales.

Based on our product, our prices is slightly cheaper than our competitor because we
provide discount to our loyal member and also to student. Besides that, the prices we provide
is affordable as all the material used is best quality.

7.6.2 Places
For places to sales our product, for now we are using online business such as
Instagram and at our company. There are few aspect that we had considered in choosing our
sale location.

1. Strategic

Our shop is located at the centre of Alor Gajah city. Besides that it near with school and
university which is easy to be access.

2. Online shopping

32
As we know nowadays, people love to buy anything via online mechanism for example in
lazada, Instagram and many else. Thus, in order to increase our production we have choose to
open one Instagram profile so that we sell our products there.

7.7.3 Promotion
An effective promotion is one of most important things in operating the business in
order to introduce the existence of the product and services. By doing so, we can increase the
production after the business is noticed by customer. For our company, a few medium we
have used in order to promote our product to customer which is by:

Signboard

Business card

Pamplets

Social networking website

7.7.4 Sales Promotion

For our company, every new design out, we will give 10% discount for the first 10
early person buy that design. Besides that, if our customer buy 4 of our product, the price
only RM 10.00 compare to if they buy one it will cost RM 3.00 per units. Its very affordable
and it will satisfied the customer.

33
7.8 Marketing Budget
Table 3.5: Marketing Budget

Monthly Expenses Other Expenses

Type Fixed Asset (RM)
(RM) (RM)

Signboard 500.00

Salaries (EPF&SOCSO) 2980.00

(Advertisement) 1000

Grand Opening 1000

TOTAL 500.00 2981.00 1000.00

34
 CHAPTER 8
OPERATIONAL PLAN

8.1 Process Flow Diagram for the Making of Aromatherapy Oil

Manufacturing of this Fairy Lamp Clock Jar used four materials such as glass jar, quartz
clock mechanism, light bulb and aromatherapy oil. For aromatherapy oil, there are several
steps to process it. 150mL of aromatherapy oil for one unit of Fairy Lamp Clock Jar.

Process of 150ml Of Aromatherapy Oil.

35
8.1.1 Process Description for the Making of Aromatherapy Oil

Step 1: Peel the outer part of three until four of lemons.

Step 2: Mix the lemons peel with carrier oil (coconut oil), then double boiler the mixture to
extract the oil. Heat with low temperature for two until three hours.

Step 3: Strain out oil by using strainer. Squeeze well to get lemon oil extract.

Step 4: Ready to put the extract oil into a bottle.

After that, for the making of Fairy Lamp Clock Jar, the materials that used to make it were
mentioned above. To make this Fairy Lamp Clock Jar, there are a few steps.

Step 1: Wash the glass jar with warm soapy water. Rinse the jar and then wipe it dry.

Step 2: Put the quartz clock mechanism into the glass jar (place it at the bottom of glass jar)
by using hard glue. Before that, bend the hands of the clock at a 90 degree angle.

Step 3: Screw up the light bulb at the cover of glass jar.

Step 4: Put the aromatherapy oil inside the glass jar.

Step 5: Decorate the glass jar with number and etc. Finally, the Fairy Lamp Clock Jar ready
to use.

36
8.3 Units Output of Operation

Unit of product per day

Day/Month Unit output
1 day operation 30 units
23 days operation (1 month) 690 units

Hours of service
Day/Month Hours of service
1 day operation 12 hours
23 days operation (1 month) 276 hours

Time Activities
8.00 a.m 4.00 p.m Preparation Process
4.00p.m - 6.00 p.m Testing Process
6.00 p.m 8.00 p.m Delivery Process

37
8.6 Operation Organization

Process
Executive

Supervisor

Logistic Operator Quality and

Maintenance

Figure 1 Operation Organization Chart

38
8.6.1 Schedule of Task and Responsibilities of Operation Staffs

Position Job Description

Process Executive Give instruction to the supervisor
in operation process
Who responsible build the process
system in the factory
Control the production of product
Keep the file of production
process, cost operation,
maintenance to the administration

Supervisor Ensure the all plant in factory run

as the procedure
Ensure the raw material always
sufficient
Take action to the operator,
logistic and maintenance problem
Do the audit of operation,
maintenance and transportation

Logistic Transfer the product to the market

Operator Make sure the process operation
run wells.

Quality and Maintenance Do the maintenance of equipment

Do the checklist of the
performance of production
Testing the quality of product

39
8.7 Operation Budget

Table 8.1 Total Budget for Operation

Asset Unit Cost(RM)

Factory
Land
Rental 5000
Deposit 2000
Total 7000

Staff Salary(RM) No of Person Cost(RM)

Supervisor 2000 1 2000
Logistic staff 1500 2 3000
Maintenance staff 1500 2 3000
Operator Staff 1500 1 1500
Total 9500
Raw Material Unit (1 Month) Cost Per Unit Cost(RM)
(RM)
Glass Jar 690 4.00 2760
Quartz Clock 690 9.00 6210
mechanism
Light Bulb 690 2.00 1380

Aromatherapy Oil 690 10.00 6900

Others 1500
Total 18750

Transportation 8000
(Lorry)
Utilities 800
Packaging material 1500

Maintenance 1000

40
Business license and 3500
insurance
Others 1500
Total 16310
OVERALL 51560
TOTAL

Table 8.2 Total Purchase Forecast for Operation

41
 CHAPTER 9

FINANCIAL PLAN

9.0 Financial Plan

9.1 Introduction

Financial Planning is the process of estimating the capital required and determining it
competition. It is the process of framing financial policies in relation to procurement,
investment and administration of funds of an enterprise. One of the most important finance
functions is to intelligently allocate capital to long term assets. This activity is also known as
capital budgeting. It is important to allocate capital in those long term assets so as to get
maximum yield in future. There are two aspects of investment decision which are: evaluation
of new investment in terms of profitability and comparison of cut off rate against new
investment and prevailing investment.

9.2 Objectives

To enables students to prepare relevant statements for the financial plan.

To enables students to develop the skills of preparing a financial plan.
To help students in evaluating the financial viability of the proposed business or
project.

42
 9.3 Project Implementation

LULLABY ELECTRICAL & ENTERPRISE

PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE
Project Implementation Cost Sources of Finance

Requirements Cost Loan Hire- Own Contribution

Purchase
Fixed Assets Cash Existing F.
Assets
Land & Building
Office Equipment 21400 21400
Furniture/fitting 12000 12000

Signboard 1,000 1,000

Vehicle (Lorry) 8000 5000 3000

Working 1 months
Capital
Administrative 65479.35 40000 25479.35
Marketing 19313 9313 10000
Operations 48560 18000 30560
Pre-Operations & Other 3000 1000 2000
Expenditure
Continge 3% 6889 1889 5000
ncies

TOTAL 1856410.3 70202 5000 94039.3 21400

5

43
9.4 Operating Budget

9.4.1 Administrative

ADMINISTRATIVE BUDGET
Monthly
Particulars F.Assets Others Total
Exp.
Fixed Assets

Land & Building - -

Office Equipment 21400 21400
Furniture/fitting 12000 12000
Working Capital

Salaries,EPF,and SOCSO 3596.10 3596.10

Utilities Bill 2050 2050
Rent 4500 4500
Office Stationary 900 900
Pre-Operations & Other
Expenditure
Other Expenditure -
Deposit (rent, utilities, etc.) 550 550
Business Registration & Licences 3500 3500
Insurance & Road Tax for Motor
1,500 1,500
Vehicle
Other Pre-Operations Expenditure - -
Total 33400 11046.1 2120 46566.1

44
 9.4.2 Marketing

MARKETING BUDGET
Particulars F.Assets Monthly Others Total
Exp.
Fixed Assets

Signboard 1,000 1,000

Vehicle (Van) 8000 8000
Working Capital

Salaries, EPF & SOCSO 13,626 13,626

Promotion 4,187 4,187
Fuel 1,500 1,500
Pre-Operations & Other Expenditure
Other Expenditure 2,500
Deposit (rent, utilities, etc.) - -
Business Registration & Licences - -
Insurance & Road Tax for Motor
1,500 1,500
Vehicle
Other Pre-Operations Expenditure 1,250 1,250
Total 9000 19,313 5,250 31063

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 9.4.3 Operations

OPERATIONS BUDGET
Particulars F.Assets Monthly Others Total
Exp.
Fixed Assets
Machines and Equipment 10000 10000
Renovation 5000 5000
Working Capital
Raw Materials 18750 18750
Carriage Inward & Duty 750 750
Salaries, EPF & SOCSO 9500 9500
Utilities 800 800
Machine Maintainance 1000 1000
Diesel and transport 8000 8000
Shop rent 5000 5000
Pre-Operations & Other Expenditure
Other Expenditure 300
Deposit (rent, utilities, etc.) - -
Business Registration & Licences - -
Insurance & Road Tax for Motor Vehicle - -
Other Pre-Operations Expenditure - -
Total 15000 43800 300 58800

46
 CHAPTER 10
JUSTIFICATION

Business plan encourages the build up of better business management of a company.

The exposure to the business strategy, management and budgets inspired the employee or
staff the key to success in the future to the business involvement. The main target of the
business is to introduce our product to the market within the country and worldwide could be
achieved with the strategic business plan. Lullaby Electrical and Enterprise has put in all
effort in order to increase our quality and quantity in term of production, development and
customer services. The business plan will become a guideline for Lullaby Electrical and
Enterprise to improve the business in future over the years

Lullaby Electrical and Enterprise consists of six partnerships or shareholders willing

to provide our friendly and committed services to achieve the set target of business as state in
the short and long goals of company. Each members of the organization had played their
main roles in administration, operational, marketing and financial of the company efficiently.
Our company will strengthen the skills, efforts and idea in order to achieve the targeted goals
as well as improving the quality of the product. Lullaby Electrical and Enterprise will find
the opportunity to introduce the business in worldwide by looking forward the quality and
quantity of the product by customers satisfaction. Last but not least, the partnerships do hope
that Lullaby Electrical and Enterprise will grow as premier Multi-purpose lamp clock jar in
the country as well as worldwide too.

47
 CHAPTER 11
CONCLUSION

In a nutshell, the business plan encourages the build-up of better business

management and act as a guideline for managing the business. Furthermore, exposure to the
business strategy, management, and budget inspired each of us the key to success in future
involvement in business. Hopefully our product has expanding potential to be in worldwide
market. Lullaby Electrical and Enterprise is offering a new variety of fragrance which come
in multi-purpose lamp clock jar. Aromatic multi-purpose lamp clock jar will conquer
fragrance market segment due to its reasonable price, long lasting fragrance aroma, and
portable which we can be put everywhere. This product is worthy of finance when it is come
to the end. Lastly, this product is suitable for everyone around the world especially among the
students and busy workers often experienced stress because the scents from the lamp clock
jar can sooth their stress from work.

48