MONTOK’ DONAT & NGOPI

BUSINESS PLAN

MONTOK’ DONAT & NGOPI

Prepared by:

NAME REGISTRATION NUMBER

SYED MUHAMMAD AMRI BIN SYED MOHAMAD ZOHAN 03DPR19F1108

NUR ADLI SYAFIQ BIN ZAINOL 03DPR19F1107

MUHAMMAD RUSYDI BIN JAMIL 03DPR19F1095

MUHAMMAD ZULHAFIZI BIN AHMAD YANI 03DPR19F1110

Date of submission :
15 NOVEMBER 2020
COMPANY’S MISSION :

Mission of our organization are to be the leading provider of a wide variety of delicious
donut & coffee based beverage products around the government in a comfortable,
relaxed and friendly environment that guarantees high quality products and the best
value for money.

COVER LETTER

A business plan is written document that serves as a blueprint and guide for a
proposed business project that one intends to undertake. There are several
purpose in preparing business plan below are the list of purpose that become the
reason why we do the business plan.
TABLE OF CONTENTS
No Item Page
1.0 INTRODUCTION
1.1 Name of the company
1.2 Nature of business
1.3 Industry profile
1.4 Location of the business
1.5 Date of commencement
1.6 Factors in selecting the proposed venture
1.7 Future prospects of the business

2.0 PURPOSE OF PREPARING A BUSINESS PLAN

2.1 Analyze and evaluate the viability of the proposed venture
2.2 Convince relevant parties of the investment potential in the
project
2.3 Provide guidance in managing the business
2.4 Allocate business resources effectively
2.5 View and evaluate the proposed business venture in a
objective, critical and practical manner

3.0 BUSINESS/COMPANY BACKGROUND

3.1 Name of the company
3.2 Address (business and correspondence)
3.3 Telephone number/Fax number/E-mail address
3.4 Form of business
3.5 Main business activities
3.6 Date of commencement
3.7 Date of registration and registration number
3.8 Name of the bank and account number
3.9 Equity contribution

4.0 BACKGROUND OF OWNER/PARTNERS/DIRECTORS

4.1 Personal particulars of partners

5.0 LOCATION OF BUSINESS

5.1 Physical location
5.2 Location of building
5.3 Basic amenities
6.0 ORGANIZATION/MANAGEMENT/ADMINISTRATIVE PLAN
6.1 Organization’s mission, vision and objective
6.2 Organizational chart
6.3 Manpower planning
6.4 Schedule of tasks and responsibilities
6.5 Remuneration plan
6.6 List of office equipment and supplies
6.7 Administrative budget

7.0 MARKETING PLAN/ANALYSIS

7.1 Description of products or services
7.2 Target market
7.3 Market size
7.4 Competitors
7.5 Market share
7.6 Sales forecast
7.7 Marketing strategy
7.8 Marketing budget

8.0 OPERATIONAL PLAN/PRODUCTION STRATEGY

8.1 Process flow chart
8.2 Production schedule/capacity planning – output in units
8.3 Material requirement
8.4 Manpower planning
8.5 Schedule of tasks and responsibilities
8.6 Remuneration plan
8.7 List of machinery and equipment
8.8 Operation layout plan
8.9 Operational overheads
8.1 Operational budget

9.0 FINANCIAL PLAN/STRATEGY/ANALYSIS

9.1 Project implementation cost schedule
9.2 Schedule of financial sources
9.3 Fixed Assets Depreciation table
9.4 Hire Purchase Repayment schedule (if relevant)
9.5 Pro forma cash flow statement for 5 years
9.6 Pro forma profit and loss account / income statement for 5
years

10.0 CONCLUSION/SUMMARY AND RECOMMENDATION

11.0 APPENDICES
1. INTRODUCTION

1.1 Name of the company

The name of this company is Montok’ Donat & Ngopi is a cafe in Malaysia that
specializes in selling high quality donuts and coffee and is well known in the
Malaysian market. The importance of the name Montok’ Donat & Ngopi as the name
of our company representing the products sold plays a very important role for the
public to know our products. Montok’ 'is a symbol of privilege. We believe that
perfection and quality in provision as well as service are the most important aspects
in our company. We want our customers to be satisfied and always remember our
products wherever they are.

1.2 Nature of business

Montok’ Donat & Ngopi is under the food sector and the reason why we chose this
sector in our main business is because we believe Malaysia has the ability to be
competitive and able to be a market leader in this sector while further increasing the
country's economic income.

1.3 Industry profile

Established as a partnership business, it involves four people and will be determined

in making delicious donuts and coffee.

1.4 Location of business

Our shop is located at MERGONG , ALOR SETAR KEDAH ,MALAYSIA. The reason why
we choose this location is because it is strategic place which is close with town ,
residence and and many institution. This location also has easy accessibility
transportation to go our bakery.

1.5 Date of commencement

The date of our business commencement is on 20 October 2020.

 1.6 Factors in selecting the proposed venture

First of all, this business is one of the ways to introduce and promote local donuts in
various variations to the public and outsiders. In addition, it can help graduates from
various institutions of higher learning who have Diploma and Degree qualifications
in our country to become entrepreneurs and not just waiting for jobs in the public or
private sector. Because donuts are already known by Malaysians and suitable for all
walks of life and ages, then we do not have to worry about the target market and
the acceptance of potential customers.

1.7 Future prospect of the business

The use of capital in business is very important. Business financing can be done
using the entrepreneur's own money or from external sources such as making loans
from banks, finance companies, cooperatives and donations. Our partnership
business contributes RM50,000 per person.

Our hope for this donut and coffee based company in the next 10 years is that we
have a stable and effective management to make more profit without neglecting our
quality. All this can be achieved by opening many of the first franchises in Malaysia
and the next Asia Pacific market. We will also introduce more new product
variations that will further enhance Montok’ Donat & Ngopi in the eyes of the world.

2. PURPOSES OF PREPARING A BUSINESS PLAN

This business plan is prepared by Montok’ Donat & Ngopi for the purposes of
obtaining a working capital loan from Maybank Berhad for an amount of RM 50
,000. This business plan is also prepare as a guideline for managing the proposed
venture.
3. BUSINESS/COMPANY BACKGROUND

MONTOKK DONAT & NGOPI

Name of the business :
A-157, TAMAN WIRA MERGONG, 05350,
Business address :
ALOR SETAR, KEDAH

A-157, TAMAN WIRA MERGONG, 05350,

Correspondence address :
ALOR SETAR, KEDAH

011-36302587
Telephone number :
604 – 8311789
Fax number :
[email protected]
E-mail address :
Partnership
Form of business ownership :
Baking various types of donuts
Core business activities :
20 OCTOBER 2020
Date of commencement :
15 NOVEMBER 2020
Date of registration :
201701080411 (1060201 - W)
Registration number :
RM200,000
Initial (own) capital :
MAYBANK
Name of bank :
5620 - 9513 – 0784
Bank account number :
4. BACKGROUND OF OWNERS/PARTNERS/DIRECTORS

4.1 Personal particulars of Owners/Partners/Directors

Name of owner / partners / : SYED MUHAMAD AMRI BIN SYED

directors MOHAMAD ZOHAN

Identity card number : 010413 - 02- 0659

Permanent address of the : A-157, Taman Wira Mergong, 05350,

company Alor Setar, Kedah

Correspondence address : A-157, Taman Wira Mergong, 05350,

Alor Setar, Kedah

Website address : www.montokdopi.com

E-mail address : [email protected]

Telephone number : 011-36302587

Date of birth : 13 APRIL 2001

Age : 27

Marital status : Single

Academic qualifications : Degree In Kulinary

Courses attended : Pastry Art

Skills : Management and development

Experience : Salesman at mall

Present occupation : General manager

Previous business experience : Working as water salesman at the

mall, waiter and drone show keeper

Capital contribution : RM50,000

4.1 Personal particulars of Owners/Partners/Directors

Name of partners : NUR ADLI SYAFIQ BIN ZAINOL

Identity card number : 010301-02-0187

Permanent address of the : A-157, Taman Wira Mergong, 05350,

company Alor Setar, Kedah

Correspondence address : A-157, Taman Wira Mergong, 05350,

Alor Setar, Kedah

Website address : www.montokdopi.com

E-mail address : [email protected]

Telephone number : 019-9449793

Date of birth : 01 MARCH 2001

Age : 27

Marital status : Single

Academic qualifications : Degree in Human resources

Courses attended : Human resources

Skills : Microsoft office

Experience : Officer

Present occupation : Administrative officer

Previous business experience : Helping in family’s business in making

cakes

Capital contribution : RM50,000

4.1 Personal particulars of Owners/Partners/Directors

Name of partners : MUHAMMAD RUSYDI BIN JAMIL

Identity card number : 010604-02-0969

Permanent address of the : A-157, Taman Wira Mergong, 05350,

company Alor Setar, Kedah

Correspondence address : A-157, Taman Wira Mergong, 05350,

Alor Setar, Kedah

Website address : ww.montokdopi.com

E-mail address : [email protected]

Telephone number : 013-6954486

Date of birth : 04 JUNE 2001

Age : 26

Marital status : Single

Academic qualifications : Diploma in Business Finance

Courses attended : Financial training

Skills : Manage financial

Experience : Officer

Present occupation : Account officer

Previous business experience : Cashier

Capital contribution : RM50,000

4.1 Personal particulars of Owners/Partners/Directors

Name of partners : MUHAMMAD ZULHAFIZI BIN AHMAD

YANI

Identity card number : 000328-02-1295

Permanent address of the company : A-157, Taman Wira Mergong, 05350,

Alor Setar, Kedah

Correspondence address : A-157, Taman Wira Mergong, 05350,

Alor Setar, Kedah

Website address : www.montokdopi.com

E-mail address : [email protected]

Telephone number : 010-3689584

Date of birth : 28 MARCH 2001

Age : 28

Marital status : Single

Academic qualifications : Degree Bachelor in marketing

Courses attended : Entrepreneurship convention

Skills : Good in computer literacy

Experience : Promoter U-mobile

Present occupation : Sales officer

Previous business experience : Selling roti canai

Capital contribution : RM50,000

5. LOCATION OF BUSINESS

At Montok’ Donat & Ngopi we care about location selection is one of the most
important strategies that entrepreneurs should take into account. We recognize that
incorrect and unplanned location choices can result in lower sales and higher operating
costs. Therefore, we have surveyed many strategic and suitable places to open our
donut shop. After looking at all the aspects, we agreed to open in the Taman Wira. We
chose this place for several reasons.

5.1 Physical location

 Easy for customers to see, areas frequented by people and good transportation
facilities.
 5.2 Location of the building

Montok’ Donat & Ngopi lot shop is located at A-157, Taman Wira Mergong, 05350, Alor
Setar, Kedah. This is one of the most important factors due to its location in residential
areas and close to shophouses. In addition, other stores run business more to
necessities such as clothing, kitchen items and others. So only Montok provides food-
based services. In addition, it is convenient for people to come to the store themselves
because the time and transportation costs to get to this place are low.

5.3 Basic amenities

 Walk in straight to the store

 Delivery to customer
 Postage
6. ADMINISTRATION PLAN

6.1 Organization’s mission, vision and objectives

MISSION

 Mission of our organization are to be the leading supplier of a wide variety of

delicious coffee-based donuts & beverages around the world in a comfortable,
relaxed, friendly environment, guaranteeing high quality products and the best
value for money. We provide our guests with elegant service and an
unforgettable experience to meet their expectations in every visit.

VISION

 For our vision is becoming a place that is always desired to enjoy

delicious coffee and donuts to enjoy with family and friends while providing a
unique customer experience.

OBJECTIVES

 Objective of our organization to make customer satisfaction with our

good service and quality product. Then , to boast customer confident and create
loyalty. Also , attract more customers and build a long good relationship with
them. Lastly , is to make our business looking more attractive.
 6.2 Organizational chart/structure

Montok’ Donat & Ngopi uses an organizational structure based on functions in the
organization. The company is divided into Administration, Marketing, Operational
and Finance departments. It is also suitable for Montok’ Donat & Ngopi as this
organization emphasizes functional specialties to perform task.

Montok’ Donat & Ngopi

SYED
(General
Manager)

ADLI RUSYDI SYED ZULHAFIZI

(Administrative (Marketing (Operational (Finance
Manager) Manager ) Manager) Manager)

FARHANA GOPAL AZIZ SHASHA MUNA SHRUTI AMEERA

(Administrative (Marketing (Operational (Workers) (Workers) (workers) (Finance Clerk)
Clerk) Clerk) Clerk)

Figure A1.1 Organization chart of Montok’ Donat & Ngopi

6.3 Manpower planning

Montok’ Donat & Ngopi has five partners and they manage, contract and execute the
operations of the business. The details of manpower planning as shown in Table
A1.2.

Number of
Positions
employees

General Manager 1

Administrative Manager 1

Marketing Manager 1

Operational Manager 1

Finance Manager 1

Administrative Clerk 1

Marketing Clerk 1

Operational Clerk 1

Finance Clerk 1

Worker 3
Figure A1.2 Position and number of employees in Montok’ Donat & Ngopi
6.4 Schedule of task and responsibilities
Every manager has responsibilities to execute the operations of the business. It is
very important to every manager to know the job task and responsibilities as it will
guide them in accomplishing their job. Table A1.3 describes the task and
responsibilities of every position.

Positions Main tasks and responsibilities

 To plan, implement and control the
overall management of the business
 To plan and monitor the strategic
General Manager
progress of the business
 To be accountable for the overall
performance of the business
 Supervising day-to-day operations of
the administrative department and
staff members.
 Hiring, training, and evaluating
employees, taking corrective action
when necessary.
Administrative Manager  Developing, reviewing, and improving
administrative systems, policies, and
procedures.
 Ensuring office is stocked with
necessary supplies and all equipment
is working and properly maintained.

Marketing Manager  Marketing manager responsibilities:

  Researching and analysing market
trends and competitors.
 Tracking effectiveness of marketing
campaigns and reporting findings to
the executive team.
 Negotiating and liaising with third-
party marketing agencies.
 Writing and delivering content and
social media plans.
 To produce products of the company
Operational Manager  To be responsible for production,
inventory and quality control
 To plan and oversee the accounting
functions and financial resources
Finance Manager  To calculate the company’s budget
 To make forecasts and accounts for
the company
 Answering phone calls and calling
customers and vendors to follow up
on appointments and deliveries
 Compiling, maintaining and updating
company records
Administrative Clerk  Managing office inventory and
working with vendors to ensure the
regular supply of office materials
 Answering customer questions,
providing information, and processing
orders and addressing complaints.
  compiling and distributing financial
and statistical information such as
budget spreadsheets.
 analyse questionnaires.
Marketing Clerk
 writing reports, company brochures
and similar documents.
 Organizing and hosting presentations
and customer visits.
 Handling administrative duties in a
company
 Common task seen on operations
clerk resumes are sorting mail, liaising
Operational Clerk with customer, operating office
equipment, ordering offices supplies,
processing payments, scheduling
employee shifts, and doing data entry
work.
 Process bills, checks, receipts and
other documents
 Ensure all documents are properly
Finance Clerk signed and distributed
 Verify financial and other data (e.g.
tax identification numbers)
 Monitor financial transactions
Figure A1.3 Schedule of task and responsibilities of employees
 6.5 Remuneration plan

For our company, we have chosen the Employees Provident Fund (EPF) scheme to be
given to all employees. EPF is a compulsory savings for employees so that they will
have money to support themselves once they retire. As a general guideline,
employers are required to contribute at least 12% of an employee’s basic salary.
Montok’ Donat & Ngopi also provides Social Security Organization (SOCSO) to ensure
that the employees receive compensation in situation of work-related accidents or
illness. Contribution made to SOCSO is on an average of 2.5% for employees with a
monthly salary of below RM3000. Table A1.4 illustrates the remuneration plan for
each employee in Montok’ Donat & Ngopi.

Number
Monthly Contribution
of Total
Positions Salary
employee (RM)
(RM) EPF (12%) SOCSO (2.5%)
s
(RM) (RM)
General 1
3,000.00 360.00 - 3,360.00
Manager

Administrative
1 2,400.00 288.00 60.00 2,748.00
Manager

Marketing
1 2,400.00 288.00 60.00 2,748.00
Manager

Operational
1 2,400.00 288.00 60.00 2,748.00
Manager

Finance Manager 1 2,400.00 288.00 60.00 2,748.00

Administrative
1 1,200.00 144.00 30.00 1,374.00
Clerk

Marketing Clerk 1 1,200.00 144.00 30.00 1,374.00

Operational
1 1,200.00 144.00 30.00 1,374.00
Clerk

Finance Clerk 1 1,200.00 144.00 30.00 1,374.00

Worker 3 3,000.00 360.00 75.00 3,435.00

Total 9 20,400.00 2,448.00 435.00 23,283.00

Figure A1.4 Remuneration plan of employees
6.6 List of office equipment and supplies

Montok’ Donat & Ngopi bought office furniture, fittings and equipment from
Suria Trading company at No. 13, Jalan Tanjung Bendahara, Bandar Alor Setar,
05000 Alor Setar, Kedah such as tables, computers, chairs and others. The list of
equipment is listed in Table A1.5. We bought seven sets of furniture. General
Manager and managers are provided with a notebook meanwhile for all clerks
we provided with a set of personal computer in order to carry out their duties
and responsibilities. A set of meeting room furniture was bought and been
placed at the meeting room.

Items Quantity Price / unit (RM) Total cost (RM)

Office furniture 8sets 400.00 3,200.00

Laptop / Notebook 5 sets 3,000.00 15,000.00

Personal computers 4 sets 2,500.00 10,000.00

Meeting room furniture 1 sets 6,000.00 6,000.00

Renovation cost 15,500.00

Total 49,700.00

Figure A1.5 List of office equipment and supplies

6.7 Administrative budget

Montok’ Donat & Ngopi purchased furniture and fittings such as office furniture,
notebook, personal computers, meeting room furniture and others for the
company. Rental for the premise must be paid every month to the Kedah State
Economic Development Corporation. Rental deposit is for three month. Utilities
deposit for water, telephone and electricity. The administrative budget of Montok

Fixed Assets cost Monthly Expenses Other Expenses

Items
(RM) (RM) (RM)

Furniture and
34,200.00
fitting

Renovation cost 15,500.00

Salary 23,283.00

Rental 3,000.00

Utilities 1,000.00

Office supplies 3,000.00

Rental deposit 9,000.00

Utilities deposit 1,000.00

Pre-operation
1,217.00
cost

Total 49,700.00 30,283.00 11,217.00

Donat Ngopi is shown in table A1.6.
Table A1.6 Administrative budget
7.MARKETING PLAN

7.1 Description of products or services

The products sold in our store consist of various types of donuts, coffee based
drinks and some types of bread and muffins are also available as a side menu.
Delivery is also available throughout the Alor Setar area. In addition, services for
events are also provided such as weddings, birthday celebrations, thanksgiving
feasts and certain occasions. Customers will buy this donut because it not only
provides donuts but also delicious bread and muffins as a side menu.
Our donuts have a variety of interesting flavors and toppings. Therefore, customers
can choose their own flavors and toppings according to their own taste.

7.2 Target market

Since we are in Alor Setar, our target market is people who live near Mergong as
well as around Alor Setar. Furthermore, in the area there are many parks,
secondary and primary schools, civil servants working there and the villagers
nearby. So our target is focused on anyone who comes to Taman Wira from the
areas mentioned earlier.

7.3 Market size

Sukaria Dessert estimated the market size to be RM 25,500 a mouth , that is, RM
7,000 a mouth for institution and RM 10,000 a mouth for families. We also took
into consideration factors that may affect sales such as wedding event , birthday
event and any celebration. Using this information , Montok Donat & Ngopi
estimated the market size to be only Rm409,600 per year.
 7.4 Competitors
In our location we have only three competitors to compete with them. Montok
Donat & Ngopi fell that it is not too tough to survive in this industry.

Competitors Strength Weaknesses

Various of flavour to be Price of product is
Starbucks
choose expensive
The price set is slightly
Producing high quality
Big Apple above the average for
product
food
Original recipe, good
Food trend not last
Dunkin Donut location and unique
forever and expensive
business plan
Figure M1.1 Marketing plan of ABC Sdn Bhd

7.5 Market share

Montok’ Donat & Ngopi has identified 3 main competitors. Our survey according to
this business reveals that each of the competitor controls a percentage of the
market shown below.

Market Share before Entry of Montok’ Donat & Ngopi.

Market share before Annual sales estimation

Competitors
entrance (%) (RM)
Starbucks 35 122,500
Big Apple 45 157,500
Dunkin Donut 20 70,000
Total 100 350,000
Figure M1.2 Market share before the entry of ABC Sdn Bhd
 After analyzing the competitor’s strength and weakness, Montok’ Donat & Ngopi
is confident can control 15% of the market. This will mean that the existing
competitors will lose some of their market after the entry of Montok Donat &
Ngopi.

Adjusted Market Share after the Montok Donat & Ngopi

Market share after Percentage of

Competitors Amount (RM)
entrance (%) loss (%)
Starbucks 30 105,000 5
Big Apple 40 140,000 5
Dunkin Donut 15 52,500 5
Montok’ Donat 15 52,500
Total 100 350,000 15
Figure M1.3 Market share after the entry of ABC Sdn Bhd

7.6 Sales forecast

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

Year Month Sales forecast (RM)

1 1
2 24,000.00
3 24,200.00
4 25,736.00
5 25.736.00
6 26,300.00
7 26,755.00
8 27,510.00
9 27,510.00
10 28,320.00
11 28,768.00
12 29,100.00
2 268,199.00
3 430,450.00

Figure M1.4 Monthly sales forecast

According to our marketing objectives, our market share will increase 2% for
every year.this means that Montok’ Donat & Ngopi market share for the year of 2021 is
to be 12% which is equivalent to RM268,199 and for the year 2022 is achieve 14%
market share which equivalent to RM430,450.

7.7 Marketing strategy

7.7.1 Products or services strategy

Brand
Montok’ Donat & Ngopi must protect brands, growth expectations, and
profits to maintain a competitive advantage and adequate reputation
among other brands. An incumbent usually has an established customer
base, which means the company has detailed information about the
customer they want to keep and how to take care of them.
Quality
Montok’ Donat & Ngopi is very concerned about the quality of the donuts
produced so Montok’ Donat & Ngopi chooses to use only premium
ingredients or make special recipes.

Design (service strategy)

Becoming known as a donut shop that welcomes every customer warmly
while taking the time to chat with them can help build a brand that focuses
on customer service. Montok’ Donat & Ngopi places the best people at the
front desk, and trains our staff to greet every customer who comes into the
store with a smile and treats with great courtesy.

Packaging
Product packaging is very important because it is one of the incentives for
people to buy. For Montok’ Donat & Ngopi packaging we use premium box
and plastic packaging. The box we use is very strong and its beautiful
design can attract the attention of potential customers. As for the
packaging of the box it is usually for a large purchase. In addition, our
plastic packaging is not easily torn and has a sticker that allows it to cover
the top so that it is even safer.

Protection
Montok’ Donat & Ngopi focuses on the protection of rights and its
enforcement in a lawful manner, we focus on the application of technical
protection measures on product privacy, such as labeling of false evidence,
provision of transport orders and others.
Ease of use
When its use is simple, at first it will be a pronunciation. However, that is
their main purpose is to eliminate the need to obtain material resources
and time-consuming tasks to measure them individually.

Product differentiation
Differentiation is a priceless strategy. Instead of getting customers by
offering the lowest prices, side menus will appeal to them with value-
added features. Extra menu of Montok’ Donat & Ngopi such as bread and
muffins will improve the quality of our donuts for example, we may choose
to use only premium ingredients or make special recipes. So it can attract
customers not only to buy donuts but also other side menus.

Attractive to customers
Montok’ Donat & Ngopi offers free samples when they make new flavored
donuts and on certain days. Montok’ Donat also always make promotions
such as discounts for second purchase and free one for purchases of four
and above to attract more customers to buy our products.

Product safety
In general, our products have product care measures approved by the
Ministry of Health Malaysia and the steps of killing germs or bacteria
certified in the baking process, which will inhibit the growth of
microorganisms and ensure a safe ambient temperature for storage.
Labeling
The main purpose of Donut labeling is to provide consumers with
information on nutrition, ingredients, sugar or fat content, date of
manufacture and expiration date. When food is properly labeled, people do
not hesitate and will trust with the product produced because they can
know all the product information on the label.

After sales service (service strategy)

As it is already an obligation to connect with customers. Montok’ Donat &
Ngopi hold competitions or events such as lucky draws for customers who
visit four days a week. To find out who is lucky to win, ask participants to
visit our website on our official Facebook and ask to follow and like the
website. This will be able to convey marketing messages to them as well as
information about our store as well as further attract their interest to visit
our store.
7.7.2 Pricing strategy
Montok’ Donat & Ngopi chooses prices based on competition because when
competitors raise prices for their products, we can leverage to attract
customers at lower prices for our products. In addition, Montok’ Donat &
Ngopi uses this pricing strategy to maintain customer loyalty. We also look at
economic conditions, customer demand, social and consumer issues to set
prices.

7.7.3 Distribution strategy

Montok’ Donat & Ngopi chooses manufacturers for consumers because it is
direct to the customer and it is easier to communicate with our customers.
We chose Taman Wira Mergong as our business location, based on several
factors such as product type, target market, transportation costs and product
standardization.

7.7.4 Promotion strategy

There are several types of promotions in this strategy namely advertising,
sales promotion, personal sales and publicity. In this business, our
promotional strategy is to use advertising and sales promotion.

In advertisements, we use banners that contain pictures and words that can
attract the attention of those who see them and place them all over an open
area that is easy to see and other attractions where people are always going
down that road so it is appropriate to promote our products. In addition, we
also promote our sales as the second purchase is free.
7.8 Marketing budget

Fixed Assets Monthly Other

Items
cost (RM) Expenses (RM) Expenses (RM)

Vehicle 80,000.00

Travelling expenses 3,500.00

Vehicle maintenance 2,000.00

Promotion expenses 3,00.00

Vehicle insurance & road tax 2,000.00

Total 80,000.00 8,500.00 2,000.00

Figure M1.5 Marketing budget
8.OPERATIONAL PLAN
8.1Process flow chart

Symbol Type of activity Description

Activities that modify, transform or

Operation
give value to the input

Transport activity occurs when

Transportation materials are transported from one
point to another

The standard of raw materials, work in

Inspection progress and finished products or
services

Work in progress material is restrained

Delay in a location waiting for the next
activity

Work in progress material or finished

Storage
products are stored in the storage area

Figure O1.1 Process flow chart for ABC Sdn Bhd

 Measuring raw materials

Mix and blend all the raw

materials

Put the flour, yeast and

butter into the mold

The combustion process/

baking proses

The process of making

flavor/topping
Cooling process

Quality inspection

Decorate the donut

Packaging

Store

Transporting
8.2 Production schedule/capacity planning
The main objective of proction planning is to ensure the quantity of the
production is enough to fulfill expected market or sale forecast over certain
period. Montok’ Donat & Ngopi adopt Chase Strategy where the quantity varies
tu suit market demand for every day. Montok’ Donat & Ngopi determine number
of input require based from for casting percentage of product through average
forecast sale.

Time of production Quantity of production

500
Daily production 26 days
= 19

15
Hourly production 12 hours
= 1.25
Figure O1.2 Production schedule calculation
8.3 Material requirement

1. DONUT

Total
Quantity Safety Price per
Items purchase Supplier
required stock unit (RM)
(RM)

Strong white
50 kg 10 kg 4 350
bread flour

Golden caster
25 kg 5 kg 3 165
sugar

Fine sea salt 20 kg 5 kg 3 600

Egg 3 carton 1 carton 12 48

Unsalted butter 50 kg 10 kg 4 240

Dry yeast 10 bottle 5 bottle 5 75

Lukewarm milk 8 box 2 box 4 40

White sugar 5 kg 1 kg 13 78

Food Colouring 5 bottle 5 bottle 5 50 Teguh Kasih

Enterprise
Whipping Cream 10 box 5 box 14 210

Flavors 5 bottle 5 kg 10 150

Vanilla extract 10 bottle 5 bottle 8 120

Baking Soda
10 bottle 5 bottle 5 75
Powder

Paper Donut Box 600 pcs 200 pcs 0.50 400

Square Donut
600 pcs 300 pcs 0.60 540
Board

Pipping Bag 200 pcs 100 pcs 0.20 60

Nozel Pipping
3 set - 15 45
Bag
 Figure O1.3 Material requirement table

2. COFFE

Total
Quantity Price per
Items Safety stock purchase Supplier
required unit (RM)
(RM)

Original coffee 10 kg 1 kg 5 55

Cappucino
5 kg 1 kg 5 18
coffee powder

Americano
5 kg 1 kg 4 24
coffee powder

Latte coffee
5 kg 1 kg 4 24
powder

Vanilla coffee
5 kg 1 kg 4 24
powder
Teguh
Hazelnut coffee
5 kg 1 kg 5 30 Kasih
powder
Enterprise
Caramel coffee
5 kg 1 kg 5 30
powder

Cup holder 800 pcs 100 pcs 2 1800

Sugar 10 kg 2 kg 3 36

Small cup 300 pcs 200 pcs 1.50 750

Big cup 500 pcs 200 pcs 2.50 1250

Brewed coffee
2 - 2500 5000
machine
3. MUFFIN

Total
Quantity Price per
Items Safety stock purchase Supplier
required unit (RM)
(RM)

Baking powder 10 bottles 5 bottles 5 75

Salt 5 kg 10 kg 4 120

White Sugar 30 kg 20 kg 4 160

Butter 10 kg 5 kg 5 75

Egg 1 carton 1 carton 12 24

Teguh
Kasih
Cream cheese 10 kg 5 kg 5 60
Enterprise
Vanilla extract 8 bottle 4 bottle 5 60

Topping 10 kg 5 kg 8 120

Fresh milk 10 kg 5 kg 10 150

Muffin cup
350 pcs 100 pcs 0.30 210
paper
4. BREAD

Total
Quantity Price per
Items Safety stock purchase Supplier
required unit (RM)
(RM)

Yeast 50 packet 10 packet 2 120

Vegetable Oil 3 bottle 1 bottle 15 60

High Protein
50 kg 20 kg 5 350
Flour

Sugar 10 kg 10 kg 4 80

Salt 5 kg 2 kg 3 21 Teguh
Kasih
Margarine 20 kg 10 kg 22 660 Enterprise

Full Cream Milk 20 box 10 box 4.5 135

Potato 6 kg 4 kg 4 40

Cheese 10 kg 5 kg 20 300

Plastic
300 pcs 300 pcs 0.10 60
Wrapping
8.4 Manpower planning
In Montok’ Donat & Ngopi, we had decided that all partners have to participate in
production and daily business. We also hire another two workers to support our
operation and increase our productivity and efficiency.

Number of
Positions
employees

Chef 2

Waiter 6

Driver 1
Figure O1.4 Position and number of Operational employees in ABC Sdn Bhd

8.5 Schedule of task and responsibilities

Positions Main tasks and responsibilities

 Package Baked Goods
Worker 1
 Maintain a Clean Work Environment
 Communicate with Customers
Worker 2
 Count and Inspect Products
Worker 3  Assist Head Baker
Figure O1.5 Schedule of task and responsibilities of employees

8.6 Remuneration plan

Number
Monthly Contribution
of Total
Positions Salary
employee (RM)
(RM) EPF (12%) SOCSO (2.5%)
s
(RM) (RM)
Worker 1 1 1,000 120 25 1,145

Worker 2 1 1,000 120 25 1,145

Worker 3 1 1,000 120 25 1,145

 Total 3 3,000 350 75 3,435
FIgure O1.6 Remuneration plan of employees

8.7 List of machinery and equipment

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

Price per Total cost

Particulars Quantity Supplier
unit (RM) (RM)

Electrical baking oven 5 3.5 17.5 CKE Holdings

Gas Baking Oven 3 1200 3600 CKE Holdings

Mixer 1 150 150 CKE Holdings

Dough Elevator 2 600 1200 CKE Holdings

Pre Sheeter 2 2000 4000 CKE Holdings

Raw Material Chiller 3 1500 4500 CKE Holdings

Cake Display Chiller 6 2300 13800 CKE Holdings

Gauge Rolls 4 10 40 CKE Holdings

Cutter/Moulder 4 40 160 CKE Holdings

Swivel Panner 1 700 700 CKE Holdings

Baking Oven 3 1060 3180 CKE Holdings

Cooling Conveyors 1 200 200 CKE Holdings

Metal Detectors 1 150 150 CKE Holdings

Magnetic Stacker 2 240 480 CKE Holdings

Packing Table 2 900 1800 CKE Holdings

Sugar Grinders 2 90 180 CKE Holdings

Bulk Handling System 2 1000 2000 CKE Holdings

For Raw Material
Handling

Packaging Machines 1 800 800 CKE Holdings

Figure O1.7 List of machinery and equipment

8.8 Operation layout plan

 Layout refers to the arrangement of mahine, equipment, worker and other

facilities uses in the operations.
 8.9 Operation overheads

Items Monthly expenses (RM)

Insurance on machinery and equipment 5,000.00

Maintenance on machinery and 4,000.00

equipment

Utilities bill 3,500.00

Total 12,500
Figure O1.8 Operations overheads cost

8.10 Operational budget

Fixed Assets Monthly Other

Items
cost (RM) Expenses (RM) Expenses (RM)

Machinery 34, 680

Equipment 6, 468

Depreciation 6, 136

Direct material costs 6,341

Indirect material costs 1,685

Salary 23,283

Overhead costs 12,500

Total 34,680 49,918 6,468

Figure O1.9 Operational budget
9. FINANCIAL PLAN

9.1 Project Implementation Cost Schedule

Project Implementation Cost Schedule

Items Fixed Assets Monthly expenses Other expenses Contingency costs Total
(RM) (RM) (RM) (RM) (RM)
Fixed Assets (Capital expenditure)
Land and building 300,000 300,000
Machinery 34,680 34,680
Equipments 6,468 6,468
Furniture and fittings 34,200 34,200
Vehicle – Van 80,000 80,000
Renovation costs 15,500 15,500
Monthly Expenses (Working capital)
Administrative budget
Salary 20,400 20,400
Rental 3,000 3,000
Utilities 1,000 1,000
Office supplies 3,000 3,000
Marketing budget
Travelling expenses
Vehicle maintenance
Promotional costs 3,000 3,000
Operational budget
Direct material costs 6,341 6,341
Indirect material costs 1,685 1,685
Salary 23,283 23,283
Overhead costs 12,500 12,500
Other Expenses
Pre-operating cost 1,217 1,217
Rental deposits 9,000 9,000
Utilities deposits 1,000 1,000
Vehicle insurance & road tax 2,000 2,000
Contingency cost (5 – 10% of monthly expenses)
Total Project Implementation Cost 448,880 65,183 36,185 8,026 558,274
9.2 Schedule of Financial Sources

Source Amount (RM)

Equity Contribution
200,000
Cash
300,000
Asset (Land and building)

External Sources
Hire Purchase 80,000
Bank Loan 80,000

Others

Total 660,000
Figure F1.2 Schedule of Financial Sources
9.3 Fixed Assets Depreciation Schedule

Type of asset : Van

Original cost : RM80,000.00

Economic life : 5 years

Depreciation rate : 20% pa

Scrap value : RM1,000.00

Method : Straight line

Accumulated
Annual Depreciation Book value
Year Depreciation
(RM) (RM)
(RM)
0 0.00 0.00 80,000.000

1 16,000.00 16,000.00 64,000.00

2 16,000.00 32,000.00 48,000.00

3 16,000.00 48,000.00 32,000.00

4 16,000.00 64,000.00 16,000.00

5 16,000.00 80,000.00 0.00

Figure F1.3 Fixed Assets Depreciation Schedule
9.4 Hire Purchase Repayment Schedule

Type of asset : Vehicle Cost of assets : RM80,000.00

Down payment : RM10,000.00 Loan amount : RM70,000.00
Interest rate : 6% Loan period : 7 years
Method : Flat rate

Year Principal (RM) Interest (RM) Payment (RM) Balance (RM)

0 0.00 0.00 0.00 99,400.12

1 99,400 1,170.35 15,000.12 83,200.03

2 83,200.03 1,170.35 15,000.12 70,100.06

3 70,100.06 1,170.35 15,000.12 70,100.06

4 70,100.06 1,170.35 15,000.12 43,400.90

5 43,400.90 1,170.35 15,000.12 25,800.20

6 25,800.20 1,170.35 15,000.12 12,900.35

7 12,900.35 1,170.35 15,000.12 0.30

Figure F1.4 Hire purchase repayment schedule
9. CONCLUSION/SUMMARY AND RECOMMENDATION

Montok’ Donat & Ngopi involves in manufacturing donuts with feeling and
original donuts, we will make sure that our customers will get only the high quality
donut which are made by own recipes. After doing some research, we conclude that
there is a high demand of our products from the people. Therefore, we see this as an
advantage to grab the opportunity of making large profit. We only provide products
that are freshness and halal products for our customers and it is our pleasure to
satisfy their needs and wants. As conclusion, we are sure that we are able to cater to
the needs and wants of our target market. We hope that we can be the main donut
with feeling manufacturer not only in Alor Setar Kedah but also in Malaysia.
Furthermore, we also hope that our products can enter the international market in
years ahead. We will give all of our efforts to make this hope come true.

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

.
10. APPENDICES

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