Othman Yeop Abdullah, Graduate School of Business

TERM PAPER : Group Project For BJMP 5023

OJAH SDN BHD : Creating Competitive Priorities Through Strategic Operation Management.

Lecturer: Dr Nor Hasni Othman UUM College of Business Universiti Utara Malaysia

Jamalul Abidin Mohd RomMahfuza Mustapha 810288 Norliza Mohamad Sani - 810298 Norul Hizad Baharudin - 810299 Siti Rohaya Mohamad Nor - 810304

MBA - Cohort 6 Date of Submission: 06 April 2013

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1.0 2.0 3.0

TABLE OF CONTENT INTRODUCTION OBJECTIVES OF STUDY COMPANY BACKGROUND i. ii. iii. iv. v. Business Objective Business Background Company Background Owners Background Product & Services

PAGE 4 5 5 5 6 6 7 9 10 10 11 11 13 13 14 15 15 16 16 16 17 17 17 17 18 18 19 19 20 20
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4.0

MANAGEMENT AND ORGANIZATIONAL PLAN 4.1 4.2 4.3 4.4 4.5 4.6 4.7 Organizational identification Organizational Chart Management Strategies Strategies and Formulation Strategies Implementation Evaluation and Control Administration Expenses

5.0

OPERATIONAL PLAN AND MANAGEMENT 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Operational Process Operational Expenses Staffing Proposed Factory Location Supplier Inventory Credit Policies

6.0

MARKETING PLAN 6.1 6.2 6.3 6.4 6.5 Price Place Promotion Target Market/ Market Segmentation Market Sizes

6.6 6.7 6.8 6.9 7.0

Competitors Distributions Channels Sales forecast Customer Benefit Packages

20 21 22 22 23 24 24 25 26 27 29 30 31 32

FINANCIAL PLAN (Assumption) 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Financial Objectives Financial Assumptions Projected Income Statement Start-up cost Balance Sheet Forecast Profit and Loss Forecast Expected Cash Flow

8.0 9.0

CONCLUSIONS APPENDIX

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1.0 Introduction Setting up a new business in manufacturing industry or the service industry, Operations Management is the key in achieving competitive advantage for organisations. It deals with several aspects of Operation Management such as the choice of products and manufacturing technology, maintenance of quality, utilization of capacity, costing and sourcing of materials and customer handling policies. Operations Management is a systematic approach to addressing issues in the transformation process that converts inputs into useful, revenuegenerating outputs. Venturing into new food product development is a challenge that requires innovation, an understanding of customer preferences and tastes, and the capacity to translate these into the final product through the right choice of raw materials, blend and production. In todays technology-driven economy, market demand and globalization are driving changes that require companies to be faster and more responsive than ever before. Increased competitive pressures are shortening product life cycles. Ojah Sdn Bhd is a company established to meet the needs of consumers in the production of snack and traditional foods that have been commercialized in order to success in business. Production of snack and traditional foods in a commercial scale has been rapidly expending with the growing demand from time to time. Busy schedule lifestyles nowadays are also encouraging this form of business additionally with delicious flavour that could attract many people to try. Ojah Sdn Bhd with the own brand IZZ Best will penetrate the traditional foods and snacks market with innovative, varieties and high quality end products With the establishment of marketing strategy and planning, Ojah Sdn Bhd expected to easily exceed the financial forecast.
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2.0

OBJECTIVES OF STUDY This paper attempts to study; i. ii. The operations management issues at OJAH Sdn Bhd The exploitation of operation process and decisions by OJAH Sdn Bhd and its relation to the creation of competitive priorities. iii. The correlation between the operation management at OJAH Sdn Bhd with marketing management and financial management. iv. The continuous improvement process and decisions at OJAH Sdn Bhd for distinctive competence of the business and its sustainability

3.0

COMPANY BACKGROUND

i. Business Objective The business plan was created as a guide for starting a new business for entrepreneurs to identify the things that need to be done in terms of service management, operational, financial and market potential as well to estimate the cost in developing a snack manufacturing business by using modern and advanced equipment. This type of food industry shall fully utilize the skilled and experienced workers in order to be the best snacks producers in Malaysia.

Furthermore the primary business objective is to generate consistent and lucrative income to the company and at the same time able to provide jobs for local communities to improve their
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capacity in terms of socio-economic status. In addition, this business is in response to the hope of the government to increase the numbers of Bumiputra entrepreneurs in Malaysia. Our products can meet the demands of plural society in Malaysia especially in demand of a quality goods and Halal with delicious taste. By using a quality raw material, then a good product can be produced. This is compatible with the government's aspiration to become a world HUB for Halal foods production.

ii. Business Background Ojah Sdn Bhd was established to meet the demands of the government to increase the number of Bumiputra entrepreneurs in the manufacturing sector. The company was founded in collaboration of five individuals with different work experience but have a strong desire to succeed in the business world. By leveraging own capital of RM150,000, we have successfully established the company that produces snacks and traditional foods for Malaysia market and shall probably expend into foreign market as planned.

All of us are holding a Masters Degree from the University Utara Malaysia (UUM) in Business Administration course. We have vast experience in various fields during our tenure in certain companies such as in accounting, finance, auditing and human resource management. This business was established based on our belief that nothing is impossible to be achieved in this world.

iii. Company background The implementation of this business will begin at Bukit Sentosa, Rawang. Selection for this location is intended to save the cost of building rental. As we know the rental rates for a building in this area is relatively low when compared with other places close to urban centers. This place can promise a huge market opportunity with the support of the local residents. Our
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preferred location can be considered as a strategic location, where it is located in the middle between Kuala Lumpur and other areas with high population density.

The business is planned to commence full operation on 1 December 2013. Full details of the background are as follows:

Type of Business Company Name Brand Name Address

: : : :

Snack and traditional foods manufacturer Ojah Sdn Bhd IZZ Best No, 22, Bukit Sentosa 2/1 48000 Bukit Sentosa, Rawang, Selangor Darul Ehsan

Telephone No.

019- 9868997 / 03 60722677

Forms of Business Date of Registration Capital Bank Name Ownership

: : : : :

Syarikat Sendirian Berhad 31 January 2013 RM150,000 AmBank Malaysia Bumiputra

iv. Owners Background Chairman Name Correspondance Addres Previous Employment Experience : Mahfuza binti Mustapha : No 13, Jalan Abadi 13, Jalan Gasing, Petaling Jaya, Selangor : Manager : 15 years experience in Human Resources Management
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Total Share Position held Board of Director Name Correspondance Addres Previous Employment Experience Total Share Position held

: 30% : CEO

: Noliza binti Mohamad Sani : No 42, Jalan Cekal 7, Taman Sri Lambak, Kluang Johor : Manager : 10 years experience in Financial Institution. : 15% : Operation Director

Name Correspondance Addres Previous Employment Experience Total Share Position held

: Siti Rohaya binti Mohamad Nor : No 1007, Jalan 8/27 F, Seksyen 6, Wangsa Maju : Senior Manager : 12 years experience in Accounting : 15% : Human Resources Director

Name Correspondence Addres Previous Employment Experience Total Share Position held

: Jamalul Abidin bin Mohd Rom : No 101, Jalan G2, Taman Malawati, 53100, Kuala Lumpur : Manager : 20 years experience in auditing : 15% : Promotion logistic / RND Director

Name Correspondence Address

: Norul Hizad bin Baharudin : No 231, Jalan SP 5/9, Sri Pristana, Sungai Buloh, Selangor
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Previous Employment Experience Total Share Position held

: Senior Manager : 16 years experience in Finance and Credit. : 15% : Financial Director

v.

Products

Below is a list of the products manufactured by our company. All these products are produced entirely using local raw materials. Most of the products produced are the types of foods that have been commercialized by our company. Our company is trying from time to time producing foods with good taste by using the latest technology. 1. Kuah Kacang / Kuah Pecal 2. Kuah Rojak 3. Pelbagai jenis bahulu 4. Pelbagai jenis rempeyek 5. Kuah Ros 6. Kuih Bangkit Santan 7. Biskut Mazola 8. Dodol 9. Jejari Udang 10. Jejari Bilis 11. Kerepek Ubi Masin 12. Kerepek Ubi Pedas Kering 13. Kerepek Ubi Pedas Basah 14. Kerepek Ubi Berperisa BBQ 15. kepek Ubi Berperisa Lada Hitam
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16. Kerepek Ubi Halus 17. Kerepek Bawang 18. Maruku 19. Kerepek Pisang Ojah Sdn Bhd plans to aggressively enhance the existing line in the future. The immediate plan is to upgrade the production machine and diverse products in order to fulfil the needs and wants of the various consumers. As we know, nowadays consumers are very choosey in selecting foods. They only look for delicious food at the cheaper price. Therefore our company needs to understand them by finding the effective and efficient ways in producing products in order to reduce the operation costs which indirectly make our products can be offered at a reasonable price.

4.0. MANAGEMENT AND ORGANIZATIONAL PLAN

Our management team is comprised of people with many years of experience in the longterm care in human resource and banking industries. Our philosophy is focus on the customers needs as well as promoting traditional food heritage to Malaysian. We have a Chief Financial Officer and two directors reporting to the CEO. Operation staffing the customer support desk will be filled as needed and reporting to the Director of Operations. Their roles such as convert raw material to finish products, packaging, labelling, promoting, logistic, and basic record of day to day cash/debt sales. All roles shall be performed by them in an orderly ways which will result an effective management that can save cost.

4.1 Organizational identification Organizational identification basically is a set of degree of shared values, goals, desires, and aims between a person and an organization . As CEO embrace our organization had
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strong fundamental of human interaction and communication since we specialize on monitor the employee according their skills. This level of organizational between employees and a company can be crucial to the success of an organization achievement. In order to encourage organizational identification, individuals must take care to meet the needs and desire for personal fulfillment of each individual member. An overly strong sense of organizational identification, however, can have consequences, as members may feel pressured to take part in unethical behavior, or be afraid to blow the shriek on inappropriate actions. No doubt the relationship between management and employees is a very important thing that might help the company to grow. Therefore our company will keep at our best each of our employees with the hope that they may be more motivated and better relationship between workers and our management can be maintained.

4.2

Organizational Chart

4.3 Management Strategies Is a set of managerial decisions and actions that determines the long-run performance of our company. Its includes:
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i.

Environmental scanning.

Community at Bukit Sentosa, Rawang starve for employment because the urban area around Klang valley is too far from this location. Selection for this location is intended to save the cost of building rental and labour wages. Target worker is among villager. Whos experienced in making kerepek. Relatively local industry based on furniture, food industry based on chips. Mostly our competitor is well establishing in term of promotion and marketing is Masri food industry. Their long set foot in producing variety. For internal resource we rely much on man power, attractive incentive offer to them, and machinery for processing goods for example multiple uses Batch Fryer which can be customize by the vendor. Motivate our promoter is essential to increasing product sales.

Overall organization will be top to down pattern. It starts from Promoting Director it will channeling order from his department to Operations department for processing. After product complete for processing it going to Promoting Director to manage logistic for delivering goods to target Place. Human Resource Director will design employees incentive and commission from each department. All purchasing raw materials, transportation, rent and including all cost and credit will be handling by Finance Department. Finance Department will be responsible in term of expenses as well as providing accurate budget so that wastage can be avoided.

ii.

Manpower / Resource

For internal resource we rely much on man power, attractive incentive offer to them, and machinery for processing goods for example multiple uses Batch Fryer which can be customize by the vendor. Motivate our promoter is essential to increasing product sales.
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Overall organization will be top to down pattern. It starts from Promoting Director it will channeling order from his department to Operations department for processing. After product complete for processing it going to Promoting Director to manage logistic for delivering goods to target Place. Human Resource Director will design employees incentive and commission from each department. All purchasing raw materials, transportation, rent and including all cost and credit will be handling by Finance Department. Generally our company may provide appropriate incentives either monitory or non-monitory to increase the level of employees motivation. All this is for giving hope to the employees so that they felt needed by our company. Manpower is the most important matter that should be emphasized to ensure the development is always on the move.

4.4 Strategy formulation Our mission is to be most establishing traditional foods, chips and Snacks Company in Selangor. Our vision in 5 years is to increase the number of branches. Our main headquarters will remain as factory and integrated marketing place. We also want to bid state tourists department to include our place to be most visit location or include it in Rawang one stop centre in Selangor map brochure. Our objective is to obtain financing of RM700, 000 from the National Corporation Berhad to enable us to fulfill our desire to compete to the outside world. As we know overseas market shall increase market opportunities for our products. We believe that our intention to commercialize these traditional foods will get full support from the government. The loan is also to make some improvements in manufacturing technology in order becoming more effective in production operations.

4.5 Strategy implementation So what we are going to do now is recruit people to handle machine based on manual. For peeling potato skin we use man power since for starter using machine it may costly same
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goes to fry packaging and labeling all using manual machine and semi auto machine. as we know automatic machines are expensive to buy, but we try to have a little more time in line with our business expansion. All processes perform in factory as we are able to do so. For marketing purposes we try to involve in several events such as sure Heboh and also various expos or carnivals held throughout Malaysia.

We are also trying to market our products in school canteens and supermarkets all over Malaysia. We also open homestead near to our factory to promote our brand among tourist. We also plan to take practical student from university as Management Trainee exposing them to the management experience. In time we train them, we could also minimize the salary payment for using their service We also participate in small part of wedding day event by supplying souvenir to guest just to diversify our turnover in business.

For employees who involved in sales or promotion, incentive given to employee is based on commission on sale. If our promoter can generate sale above RM1,000 we will give he or she 7% from total sale. This is to enhance the spirit in sales to get the incentives provided by our company.At this stage our employees opinion in generating more sales are welcome because the views expressed by employees sometimes can be used to increase revenue. Other than that we will try to penetrate hot spot for market our product especially in supermarket such as Jaya Jusco, Tesco and Giant.

4.6 Evaluation and control It focuses on integrating management, marketing, finance, production, research and development to achieve organizational success. The process of monitoring corporate activities and performance results so that actual performance can be compared with desired performance. All department output will be monitored and will be carried out for every
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month to encounter miscalculated in any area of department. By doing this enables all the expenses can be spent wisely and prudently. All the provisions can be measured accurately and avoided overspending. 4.7 Administration Expenses Administrative expenses are part of the operating expenses along with selling expenses. Administrative expenses include expenses associated with the general administration of the business. Examples include the salaries and fringe benefits of the company president, human resource personnel, accounting, information technology, the depreciation expense for equipment and space used in administration, as well as supplies, utilities, etc. Administration expenses will be concentrating more on rental, raw material, labour, transportation, packaging, and cost of warehouse. The management must manage companys expenses with wisely in order to reduce the operation costs. With low operating costs will able to increase profits and remain competitive in the market

5.0 OPERATIONAL PLAN AND MANAGEMENT

We have to segregate our operation to for a particular cause. For example peeling/cutting department, making dough/ flavouring, fryer, bake, packages, and labelling department. We have separated each department to perform a specific task in order to improve the process chain. With this specialization, it will be able to increase production efficiency in our company. with this efficiency, all orders by customers can be processed according to the schedule.

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5.1 Operational Process

Peeling section Raw material section

Fryer section

Dough making section

Bakes Section

Packaging

Quality Control Section

Labelling

5.2 Operational Expenses

Delivery / warehous e placement

Operational expenses will be related to Material cost, Labor, Building rent, Utility, Electricity, and Water.

5.3 Staffing We selected 8 workers to work with us; they work at working hours from 8 a.m. to 6 p.m. and all the companys account are done by our own financial director at this moment. We are still
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in the process of recruiting employees to work with our company. We need motivated employees to work in our administrative and manufacturing divisions.

5.4 Proposed Factory Location Bukit Sentosa, Rawang. Selection for this location is intended to save the cost of building rental. As we know the rental rates for a building in this area is relatively low when compared with other places close to urban centres. With lower rental rates, we not only can get more space for the processing and administration but also space to store

5.5 Supplier Rawang mostly, is still a rural area and at most of terrain still using for agriculture. Not hard for us to find raw material such as banana, potato, flour, and sugar. Most our raw material are from Anim Agro tech enterprise. Purchase large amounts can reduce the price as well as good relations with them could give an advantage to us

5.6 Inventory Our system inventory will implement First in First Out (FIFO) basis, it will record first item comes and it will take immediately for first delivery.

5.7 Credit Policies We Accept Credit from our customer, shortest credit are 1 month and longest 90 days. We give discounts to our customers who buy in bulk if payment is made within one month.

6.0 MARKETING PLAN

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6.1 Price Products 1. Kuah Kacang / Kuah Pecal 2. Kuah Rojak 3. Pelbagai jenis bahulu - Bahulu ikan kecil / besar - Bahulu cermai - Bahulu bunga / bahulu pecah lapan - Bahulu Gulung - Bahulu lapis 4. Pelbagai jenis rempeyek - Rempeyek kacang tanah - Rempeyek kacang dal - Rempeyek kacang hijau 5. Kuah Ros 6. Kuih Bangkit Santan 7. Biskut Mazola 8. Dodol 9. Jejari Udang 10. Jejari Bilis 11. Kerepek Ubi Masin 12. Kerepek Ubi Pedas Kering 13. Kerepek Ubi Pedas Basah 14. Kerepek Ubi Berperisa BBQ 15. kepek Ubi Berperisa Lada Hitam 16. Kerepek Ubi Halus 17. Kerepek Bawang 18. Meruku 19. Kerepek Pisang price/units/100mg (RM) 4 4 6 6 6 6 6 2 2 4 5 5 4 12 6 5 5 5 5 5 5 5 5 5 3

6.2 Place/Location Bukit Sentosa, Rawang. Selection for this location is intended to save the cost of building rental. As we know the rental rates for a building in this area is relatively low when compared with other places close to urban centres. This area is suitable because of large population density and good transportation system.

6.3 Promotion

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For marketing we contacted Sure Heboh to participate into their event. We also look market at office canteens, small shops, petrol stations and supermarkets throughout Malaysia. We also open homestead near to our factories to promote our brand among tourist. We also plan to take practical student from university to train them in company management and to learn how to make traditional snacks. We also participate in small part of wedding day event by supplying souvenir to guest. This is to futher increase the profit of our company.

Done with promotion, incentive to employee is based on commission on sale. If our promoter can generate sale above RM1,000 we will give them 7% from total sale. This is an increase of the company's strategy to promote sales of the company, where the results will be distributed to salespeople in the form of commission

There are other things that we must to think about, rebranding, how to distribute our snacks right to customer door, interactive price, marvelous promotion, advertizing of products, the easy way to advertise our product sometime it expensive however there is also free. Such as:1. Newspaper, magazine, 2. Flyer, broucher, 3. Internet, blog, facebook, 4. TV radio, 5. Relative or friend( mouth to mouth promotion)

6.4 Target Market/ Market Segmentation Our target market is among Malay because this related to Malay traditional culture products; however other races also begin to eat traditional products such as kerepek pisang and maruku. Malay like to eat kerepak in hitea event while Indian love to eat Maruku, it just like a part
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from their traditional snacks. We also can do packaging similar to foreign company such as Mr. Potato chips. This is to attract consumer to purchase our product.

6.5 Market Sizes Market size is concentrate to whole Malaysian shopping centre. However for now we just distribute to local groceries stalls, supermarkets and local restaurants to promote our products.

6.6 Competitors Masri is our main competitor which already establish at Sekinchan area. However, their market size is small only include areas around Selangor. Therefore we will try to fulfil every space that has not been filled by them. This is a healthy competition that can fulfil consumer demand, which is not limited. 6.7 Distributions Channels In this distribution channel is from us directly to customer to maintain it freshness. Our main tread is to keep crispiness of kerepek pisang to sustain it flavour more than 6 months. If we establish home stay it will be appropriate to advertising our product among tourist and travel agency. It so quickly be fame among the Singaporean and Chinese tourists. Our products can be their favourite food if appropriate promotions are given to them.

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For second distribution type it may need cooperation and interest from retailer to purchase our product and put it into their shelves. At this stage Attractive packaging is most important. It must be authentic and it can be selling at reasonable price. If we can bypass wholesaler it would be great because customer will pay less to get delicious Kuih Bahulu from our retailer.

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For third stage of distribution happen if we manage to enhance our marketing and high demand from our customer. Wholesaler will take part to determine price of our product and it will be threaten our income for monthly. Unless we also act as whole seller and we can determine price of product from other producer also.

6.8 Sales Forecast We forecast our sales will be increase as much as 30% next year. And it will be 60% in the Hari Raya event. And it will be increased from time to time in line with our sales and marketing strategy that is quite aggressive.

6.9

Customer Benefit Packages

The customer benefit package (CBP) is designed and built to understand the consumer need. It is important that our company have a strong CBP in competitive market. Our CBP has been designed and configured to target a particular market and customer, which is Malay customer.

Below table shows our CBP plans:

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DEFINED BY CUSTOMERS EXAMPLE WANTS AND NEEDS Easy to get Food / Snack Transparent and Halal products Freshness of Product

CBP FEATURES BY MANAGEMENT TO FULFILL CUSTOMER WANTS AND NEEDS Strategic outlet location Ingredients are labeled at packaging with Halal logo. Fresh baked cookies or snack by using fresh raw material such as eggs To use Traditional Recipes Clean factory and outlets.

DEFINED BY MANAGEMENT PROCESS TO CREATE OR DELIVER Outlet located at housing areas and hypermarkets Get Proper or Valid halal certification from the proper authority Just in Time delivery of Raw Material. Product supplied daily to ensure freshness. No alteration of recipes and strictly no preservatives. Regular maintenance of Machines. Regular cleaning of Oven and machines and other utensils. Daily cleaning of factory and baking area. Strict compliance of cleanliness of staff; Cover Hair, Short finger nails, wash hands regularly. Provide adequate transportation to send products from factory to outlets. Provide adequate manpower. Provide training to ensure efficiency. Develop new recipes or new product line.

Homemade Taste Cleanliness

Stable Supply

Efficient product supply

Variety of Snacks

Develop new enhance flavor of chips

7.0

FINANCIAL PLAN

We start with capital of RM150,000. We decided to purchase second-hand small lorry to delivering our products. From used car dealers here they are willing to sell second-hand lorry at the price of RM 12, 000, while the building owner willing to let us rent the building at RM 400 per month. For the starting point we hire only 5 people to work in the operational side.
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Delivering 1 person and promoting is 2. Our starting pay for operational workers is RM 950 for each, delivering is based on trip while promotion staffs will receive basic salary of RM 1,000 and they will enjoy commission if they could generate above RM 1,000 of their sales which the commissions payment is based on of 7% from their total sale.

5.1 Financial Objectives Our objective is to gain sum of RM700, 000 from the National Corporation Berhad to enable us to fulfill our desire to compete to the outside world. We want to expand to Indonesia and Brunei market. Not only that, but we want to expand our business by increasing the

efforts to be known among the nations level. Besides that, we also want to have the current technologies that can speed up production.

5.2 Financial Assumptions Assumptions made regarding revenues are: iii. iv. v. Relationships with key customer will be ongoing. Sustain income can be obtained Sustain income can be achieved starting in January 2014.

Assumptions made regarding Expenses are: 1. An out-of-home office will not be needed, keeping overhead low. 2. New equipment purchases will be made. However it depreciation is excluded from account because it will be unreasonable since it used lorry 5 ton, age more than 10 years. 3. Marketing expenses will not need to increase significantly in order to maintain sales.

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5.3

Projected Income Statement

april 46,3 83 24,2 27 1,6 38 20,5 18 18 38 20,5 18 27 1,6 38 20,5 18 83 24,2 27 1,6 38 20,5 18 may 46,3 83 24,2 27 1,6 38 june 46,3 83 24,2 27 july 46,3 83

PROFITS AND LOSS AS AT 31 DECEMBER 2014 RM januar februar march y y SALES 556, 46,3 46,3 46,3 601 83 83 83 PURCHASE 290, 24,2 24,2 24,2 725 27 27 27 RETURN INWARD NET 19, 1,6 1,6 1,6 STOCK 658 38 38 38 GROSS 246, 20,5 20,5 20,5 PROFITS 219 18 18 18 EXPENSES

august

46,3

24,2

1,6

20,5

SALARY 156 UTILITIES 378 RENTAL (factories and other machines) EDUCATIO N ELECTRICI TY Expenses(l oan + interest) WATER OTHER EXPENSES CAR INSTALLM ENT CAR transfer TELEPHON E house payment NET PROFITS 830

44, 80 21, 81 13, 53

3,6 80 1,7 81 1,1 53

3,6 80 1,7 81 1,1 53

3,6 80 1,7 81 1,1 53

3,6 80 1,7 81 1,1 53

3,6 80 1,7 81 1,1 53

3,6 80 1,7 81 1,1 53

3,6 80 1,7 81 1,1 53

3,6

1,7

1,1

587 1, 808 43, 166 2, 831 17, 349 -

49 1 51 3,5 97 2 36 1,4 46 -

49 151 3,5 97 236 1,4 46 -

49 1 51 3,5 97 2 36 1,4 46 -

49 1 51 3,5 97 2 36 1,4 46 -

49 1 51 3,5 97 2 36 1,4 46 -

49 1 51 3,5 97 2 36 1,4 46 -

49 1 51 3,5 97 2 36 1,4 46 -

49 51 97 36 46 -

3,5

1,4

101, 8,4 8,4 8,4 8,4 8,4 8,4 8,4 8,4 114 26 26 26 26 26 26 26 26

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PROFITS AND LOSS AS AT 31 DECEMBER 2014

september SALES PURCHASE RETURN INWARD NET STOCK GROSS PROFITS 1,638 20,518 46,383 24,227 1,638 20,518 october 46,383 24,227 novemb december er 46,38 46,383 3 24,22 24,227 7 1,63 1,638 8 20,51 20,518 8

EXPENSES

SALARY UTILITIES RENTAL (factories and other machines) EDUCATION ELECTRICITY expenses WATER OTHER EXPENSES CAR INSTALLMENT CAR transfer

3,680 1,781 1,153 49 151 3,597 236 -

3,680 0 1,781 1 1,153 3 49 49 151 51 3,597 7 236 36 -

3,68 1,78 1,15

3,680 1,781 1,153 49

1 3,59 2

151 3,597 236 26 | P a g e

TELEPHONE house payment NET PROFITS

1,446 8,426

1,446 6 8,426 6

1,44

1,446 -

8,42

8,426

5.4 Start-up cost Start up cost it will be RM 37, 500 for initial operation and promotion it quite a lot of money since we need sustain generate our income as much as RM 46 ,000 per month. It will need return on capital per month as much as 8.5% for each month. We bear that cost is as much as 37.5% from our current Capital.

5.5 Balance Sheet Forecast BALANCE SHEET AS AT 31 DECEMBER 2014

RM FIXED ASSET house TOTOTA CAFIRO LORRY GELEN CURRENT ASSET BANK DEBTOR STOCK WORKING CAPITAL NET ASSETS LONG TERM LIABILITY housing loan SHORT TERM LIABILITY : CREDITOR 0.00 0.00 8,000.00 0.00

201,114.41 0.00 19,657.5 122,342.50 351,114.41

0 0 150,000 27 | P a g e

SHORT TERM LOAN CAPITAL P&L TOTAL LIABILITIES

0.00 100,000 101,114.41 351,114.41

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Balance Sheet Forecast

BALANCE SHEET AS AT 31 DECEMBER 2014 simulation RM FIXED ASSET house TOTOTA CAFIRO LORRY GELEN CURRENT ASSET BANK DEBTOR STOCK WORKING CAPITAL NET ASSETS LONG TERM LIABILITY housing loan SHORT TERM LIABILITY : CREDITOR SHORT TERM LOAN CAPITAL P&L TOTAL LIABILITIES 0.00 0.00 8,000.00 0.00

201,114.41 0.00 19,657.5 122,342.50 351,114.41

0 0 150000 0.00 100,000 101114.41 351,114.41

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5.6 Profit and Loss Forecast

PROFITS AND LOSS AS AT 31 DECEMBER 2014 simulation RM SALES 556,601.08 PURCHASE 290,724.85 RETURN INWARD 0.00 NET STOCK 19,657.50 GROSS PROFITS 246,218.73 EXPENSES

SALARY UTILITIES RENTAL(factories and other machines and homestay) EDUCATION ELECTRICITY Expenses (promotion) WATER OTHER EXPENSES CAR INSTALLMENT CAR transfer TELEPHONE house payment NET PROFITS

44,156.34 21,377.93 13,830.00 586.60 1,807.83 43,165.82 2,830.86 0.00 0.00 0.00 17,348.94 0.00 101,114.41

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5.7

Expected Cash Flow

RM 100000 RM

cash flow as at 2014 simulation balance b/d mone y in mone y out sales 556,601 PURCHASE 290,725 SALARY 44,156 UTILITIES 21,378 RENTAL(factories machines) EDUCATION ELECTRICITY 1,808 expenses 43,166 WATER 2,831 OTHER EXPENSES CAR INSTALLMENT CAR transfer TELEPHONE 17,349 NET STOCK 19,658 455,486.67 and other 13,830 587

cash gain at the end of 2014

101,114.41

balance c/d 114.41

201,

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The usage of financial tools such as breakeven point, budgeting, financial ratios, costing analysis will determine the successful of companies as most of new entrepreneurs (especially the SMEs) are come from a nonfinancial background and lack accounting knowledge. This helps them delve more into their financial strength in order to provide a better understanding of their financial position. They also need help to market their products both locally and globally. Other areas include promotion of the unique features of their products in order to create public awareness regarding them. In addition, SMEs also need expertise in market intelligence where they are able to obtain information on the current and future demands, potential threats and opportunities that will help the growth of the company. The early-growth stage companies need guidance in pricing as they need to ensure that the price they set is competitive. Choosing the right manufacturing processes is crucial as it implication for the cost of operation, quality and productivity.

8.0

CONCLUSIONS

The OJAH line of products will be extended from time to time as the company gradually moving into a mature stage. OJAHs products ranged from the extrusion snack to baulu, kerepek and potato chips. Our product groups will be continuously expended and

diversified in order to meet customers demand and to maintain sustainable growth in our business development. Striving to produce products with safety and quality, we have been focusing on research and development in order to compete in the fiercely competitive snacks food market and for the survival and long-term growth of our company. Continuous product innovations from time to time will help to keep us in line with the market trend and consumer need. With our strength in quality control, product development and continuous market expansion, we will have a promising future ahead of us.
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Our partnership with the government agencies and private sector such as SME Bank, Malaysia External Trade Development Corporation (MATRADE), Standard and Industrial Research Institute of Malaysia (SIRIM), SME Corp, Malaysian Technology Development (MTDC), Ministry of Science, Technology and Innovation (MOSTI), Federation of Malaysian Manufacturers (FMM) and Dewan Perniagaan Melayu Malaysia (DPMM) could play a bigger role in assisting us to overcome the obstacles that we might face.

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