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Example Full Report group Assignment

Fundamentals of Entrepreneurship (Universiti Teknologi MARA)

StudeerSnel wordt niet gesponsord of ondersteund door een hogeschool of universiteit

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1.0 INTRODUCTION

Yummy Potato’s Company is located at Jalan4a/44, 15000, Kota Bharu, Kelantan that allows
the entire customers to have their satisfied in one convenient location Yummy Potato’s
Company serve more to children and teenagers and accepts appointments as well as walk-ins.
Yummy Potato’s Company is able to serve target market in one quick, convenient visit. We have
come out with ideas to combine these two elements into one. We are interested to involve in
this types of matter because we see that there is only one recipe have value added. We have
decided to be a successful in field snacks and biscuit for every generation.

The truth is that there are many of stall that have selling snacks, who are already exist in this
market. However, no one who had added the snacks with another additional flavor or medicine
to make it tasty and in same time can give us a good health when eaten the snacks. So we
decide to take this type of opportunity to widen this type of business in Malaysian’s market. We
think, the snack which are potato recipe that we are renovated is the main attraction of our
business. Our company decides to make chips based on potatoes and add it with additional
flavor, which is Berry. There are many benefits in Berry such as care our skin to be healthy. We
believe that people will be attracted to eat it more happily.

There are not many people who are aware of this kind of problems especially children and
teenagers. They do not understand how much important the food are them eating. We eat not
only for to get full, but also to have healthy health. We decided to take this chance to help our
own citizens to eat healthy food.

Last but not least, with this creative idea from our members we hope that our company will be
successful and will attract customer to our product. Due to this, we will be able to achieve our
mission which is to become the best world’s field snacks and biscuit in Malaysia

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1.1 PURPOSE

This business plan is prepared because to convince capitalists, investors and banker in order to
raise capital and obtain support for the venture. We need investors to raise fund for the purpose
of company management and upgrading.

This business plan is also being drafted so that Yummy Potato does will get the financing it
needs in order to start its business. The loan is crucial in order to start the business, so the
presentation of this business plan is vital to gain the confident of the bank.

Yummy Potato’s Company has asked from Maybank for a loan up to RM 50,000 so that it can
build itself in this business. The other RM 200,000 will be from the accumulated capital provided
by each shareholder in the company. Each shareholder has agreed to contribute RM 50,000
each.

The financing will be used to purchase startup ingredients such as potatoes, berry, flavor and
many more. We can get all this ingredients from our trusted suppliers, and they have agreed to
provide products with the best offer ever.

We also use this business plan as a guideline to the manager in order to succeed in the
business. Yummy Potato’s has all the ingredients to be one of the best in the business. This
business plan will includes company background, marketing strategy, operation plan, sales
forecast and also the most important, the financing plan of the business.

Yummy Potato’s will fully utilize all the assets so that it can maximize the profit. The profit that
the company gets will be used to pay the loan that is given. Yummy Potato’s One’s Potato is
completely confident that it will be able to pay the loan back including the interest payment in
the loan given.

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1.2 COMPANY BACKGROUND

Name of company YUMMY POTATO’s COMPANY

Address JALAN 4a/44,
15000 KOTA BHARU, KELANTAN.

Telephone number 019 999 9999

Fax number 03 333 333
Email yummypotato’[email protected]
Form of business PARTNERSHIP
Main activities PRODUCE AND SELL
Date of registration 1 AUGUST 2014
Number of registration M1457128-D
Date of commencement 1 OCTOBER 2014
Initial capital RM 250, 000
Name of bank MAYBANK BERHAD

Table 1: Company background

1.3 LOGO

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Figure 1: Logo of company

This logo represents:

Image: Potatoes are the main products

Red, Oren and brown color: symbolize property, natural and cheerful of our product.

1.4 OWNER OR PARTNERS BACKGROUND

Your Photo

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NAME OF THE PARTNERS : xxxxxxxxxxxxxxxxx

IDENTITY CARD NUMBER : xxxxxx

ADDRESS : xxxxxxxx

Your photo

NAME OF THE PARTNERS : xxxxxxx

IDENTITY CARD NUMBER : xxxxxxxxx

ADDRESS : xxxxxxxxxxxxx

Your photo

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NAME OF THE PARTNERS : xxxxxxxxxxxxxx

IDENTITY CARD NUMBER : xxxx

ADDRESS xxxxxxxxxxxxxxxxxx

2.0 ADMINISTRATION PLAN

2.1 INTRODUCTION TO ADMINISTRATION PLAN

In an organization, the administration side is important to determine the stabilization of a

business. A systematic and good arrangement of the system is the main factors of a successful
business. Furthermore, goals and strategies outlined must be fully accomplished to make sure
the business is considered successful.

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Role of the administration management include planning, implementing and controlling.

A part of administration responsibilities are planning the organizational structure, manpower
planning, personnel salary and welfare, workstation (office) welfare.
The elements in the administration plan are the organization structure, list of personnel,
schedule of task and responsibilities, remunerations, office assets and inventory planning and
administration budget.
The organization plan is the activity or plan to layout all of activities consists every
administration aspect. It must be prepared systematically. Many aspects are taken to ensure all
of the resources can be used and also to fulfill customer needs and wants. There are:-

1. Administration structure where it will help in managing the entrepreneur.

2. Always make sure all the service and product provided in good quality.
3. Used overall resources, always maintain at higher level, and control time to time by
using the strategic plan.
4. Plan the administrative needs carefully to avoid mistake and reduce risks in
purchasing and repair of assets.
5. Control and try to reduce the expenditure.
The main task of the administration department is to make sure the administration of the
company works well and goes smoothly. Thus, the administration plays important part in the
company as being the head of all departments and also to make sure upon all, the benefits and
our right interests obtain by each and every employee.

2.2 ORGANIZATION CHART

xxx

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2.3 LIST OF ADMINISTRATIVE PERSONNEL

Biodata

2.3 SCHEDULE AND TASK RESPONSIBILITIES

POSITION MAIN TASK

GENERAL MANAGER
Control overall management of the business.
To be accountable for the overall performance of the
business.
To ensure the operation of the business run smoothly.
To plan and monitor the strategic progress of the
business.
Make an important decision that purpose to improve
the business.
Manage and coordinating the overall administration of
company.
To identify problem and find the most effective
solution to solve it.
MARKETING MANAGER
Find the customer target.
Planning and organizing the market strategies as to
introduce the company and its product and services to
the public.
Make strategic planning for market this business in
pricing, promotion, product, and services related.
Always look the new alternatives in marketing
strategy to be and influent from the competitors.
To ensure the effectiveness of marketing process in
order to achieve company target sales..

FINANCIAL MANAGER
Make the financial report and company yearly budget.
Preparing the company cash flow including all cost.
To ensure the company get the invincible break even

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capital control and financial planning functioning.

To plan company budget and update the financial
record every year to ensure the stability of company
financial.
To ensure the salary and wages are paid on time.
Managing and coordinating financial aspect and
determine the company financial status.
ADMINISTRATIVE To help the General Manager to coordinate the
MANAGER business administration.
To plan, implement and control the overall
management of the company administration activities.
To ensure the effectiveness of the company
organization.
Control the human resources management.
To improve and evaluate the performance appraisal of
workers from time to time.
Manage the administration budget.
To be responsible to the workers welfare including the
compensation (salary, EPF, SOCSO) and fringe
benefits such as bonus.
To keep good relation with the other staff.

OPERATION MANAGER  Responsible to manage the business operation of the

company run smoothly.
 Making sure the workers implement their works
effectively and appropriately.
 To arrange the activity or program.
 Responsibility the equipment and facilities are in good
condition.
 To ensure the service given are accordingly to the
customer order.
 To ensure the quality service is provide to customer.
 Cooperate with other department on relevant areas
for smooth running of event operation.
 Carrying out other duties as decided by the
management from time to time.
 To ensure strict compliance on the cleanliness,
presentation and the quality of services.

Table 2: Schedule Tasks and Responsibilities

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2.4 SCHEDULE OF REMUNERATION

TOP LEVEL MANAGEMENT

N POSITION SALARY/ EPF SOCSO TOTAL

O MONTH 8% 2.4% (RM)
(RM)
1 General Manager 3,000.00 240.00 72.00 3312.00
2 Operation Manager 2,500.00 200.00 60.00 2760.00
3 Financial Manager 2,500.00 200.00 60.00 2760.00
4 Administration 2,500.00 200.00 60.00 2760.00
Manager
5 Marketing Manager 2,500.00 200.00 60.00 2760.00

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TOTAL 13,000.00 1,040.00 312.00 14,352.00

DOWN LEVEL MANAGEMENT

NO POSITION NO. OF STAFF SALARY/ EPF SOCS TOTAL

REQUIRED MONTH 7% O (RM)
(RM) 2%
1 Office boy 1 500.00 35.00 10.00 545.00
3 Cleaners 2 500.00 35.00 10.00 1,090.0
0
4 Workers 5 500.00 35.00 10.00 2,725.0
0
5 Clerk 2 500.00 35.00 10.00 1,090.0
0
TOTAL 10 5,000.00 350.00 100.00 5,450.0
0

Table 3: Schedule of Remuneration

2.5 LIST OF OFFICE EQUIPMENT AND SUPPLIES

TYPE PRICE/UNIT QUANTITY TOTAL AMOUNT

(RM) (RM)

Table 60.00 6 360.00

Chair 20.00 20 400.00
Computer 1,300.00 5 6,500.00

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Photostat machine 1,500.00 1 1,500.00

Fax machine 100.00 1 100.00
Printer 200.00 2 400.00
Telephone 50.00 4 200.00
Cabinet 150.00 3 450.00
Fridge 1,000.00 2 2,000.00
Coffee Maker 120.00 2 240.00
Sofa set 550.00 2 1100.00
Air Conditioner 500.00 4 2000.00
First aid kit 70.00 2 140.00
CCTV 100.00 2 200.00
Machinery 5,000.00 5 25,000.00
TOTAL 40,590.00

Table 4: List of equipment and supplies

2.6 ADMINISTRATION BUDGET

ITEMS FIXED ASSET MONTHLY OTHER

(RM) EXPENSES EXPENSES
(RM) (RM)
40,590.00 - -
Company
equipment
- 19,802.00 -
Salary
(EPF & SOCSO)

- 1,500.00 -

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Rent

Electricity bills 350.00

Water bills 400.00

Telephone bills 300.00

- - 350.00
Business
Registration

Business License / - - 150.00

Permit Deposit

Road tax - - 150.00

Stationery expenses - - 500.00

Total 40,590.00 22,352.00 1,150.00

GRAND TOTAL 64,092.00

Table 5: Administration budget

3.0 MARKETING PLAN

3.1 INTRODUCTION TO THE ORGANIZATION

Yummy Potato’s Company is a new leading in Bumiputera HALAL challenge

entrepreneurs with have the big mission, vision and objective to realize it. Our enthusiasm
toward the establishment of our business is the right time this is because we look that the field
of business HALAL product of biscuits in Malaysia are have many competition so that’s why we
want to expand it. We are very particular in our production especially in preventive control
measures to ensure the highest food safety in accordance with HALAL, and the Good
Manufacturing Practices (GMP) programmed.

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3.1.1 VISSION AND MISSION

VISSION

Provide comfort and customer satisfaction.

Customers do not have to go to different places to chat and enjoy potato recipe because we
facilitate customers by providing various potato recipe with various flavors.

To expand the market

Potato brand makes one-western-style food franchise successful local and known. Besides that,
to further expand the franchise brand Potato international market level.

MISSION

To become the world’s best potato recipe in Malaysia

We want to be the first company in Malaysia that uses potato as raw materials to our products.
Our company differs from other potato production company and we want to produce something
new for our products as well as producing quality products. Besides that, ensuring that sales
and market our products will continue to have a demand in the business and entrepreneurship
as well as achieving a target that has been set.

3.1.2 OBJECTIVES AND GOALS

OBJECTIVES

To provide quality food.

As we provide a comfortable place and surrounding, the customer can have their rest time with
a cup of coffee and potatoes with a variety of flavors. We provide a low snack potato
carbohydrate and high protein, it is very suitable for people who are fond of Malaysia healthy
food practices.

To fulfill customer satisfaction.

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In our company, we have been providing various facilities and comfort to our customers by
providing special treatment. In addition, we provide a membership card to our regular customers
and hold a lucky draw for customers who accumulated the highest point.

GOAL

Our company's goal is to produce a variety of products based on potatoes. Our

company's goal is also to become one of the successful companies in the processing of
potatoes and potato products manufacturer in Malaysia and will be known abroad. Besides that,
we want to continually increase our products from time to time to keep improving the quality of
our products.

3.2 Target Market

YUMMY POTATO’s target markets will consists of the following groups:

3.2.1 Children

 Children who are age around 7-12 years old. Mostly children like something
sweet biscuit and our product is suitable for them.

3.2.2 Teenagers

 Teenagers who are age around 13-25 years old. Actually, based on our
research, the teenagers mostly like something simple and healthy food. Our
product will be their choice because the different taste and benefit came from
potato mixed berry.

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Market analysis
Childrens Teenagers

50.00% 50.00%

Figure 2: Analysis of market

3.3 Market size

Market size is total potential purchase that is expected from the target market. Estimation of
market size required information regarding the particular market the business intends to enter.
The potential purchase includes purchase of the competitor within the same market.

Kota Bharu is developing city where there are many infrastructure and services provided to its
surrounding. Kota Bharu also surrounded with working place, universities, and housing area.
Besides that, each of the area within Kota Bharu are provided with public transportation such as
busses, train and taxis. Furthermore, there are established shopping complex which is Kota
Bharu Shopping Centre are situated in Kota Bharu. For the seasonal factor, Kota Bharu will be
crowded with people during seasonal event such as New Year, Hari Raya, Chinese New Year
and other event.

Usually people like children, students, families, business person and others are in Kota Bharu
because of work, school, shopping and spending their time with family. Our business has
identified our target market that is mainly on children and teenagers.

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3.4 Competitions
At our location, YUMMY POTATO’S has some competitors as same business like us. Yummy
Potato’s Company looks two competitors as the major competitors in snack potatoes market
which is Mister Potatoes and Crackers. We look competitors as an incentive to improve our
company to be good in providing the best products to customer. Yummy Potato’s Company
also takes the competitors as healthy challenge. It just wants to make a variety in market
competitors especially at Jalan4a/44, Kota Bharu. So, customer can also have many choices to
meet their preferences. At the same time, YUMMY POTATO’S will also provide good and quality
products to meet their expectation and satisfying their wants.

The similarities with the competitors are same which is providing products based on potatoes.
The differences of our company with the competitors are company provides all value added in
potatoes product to more delicious and healthy. And our product targeted to children and
teenagers.

3.4.1 Competitors list

 Major
Mister Potatoes Company
Jalan3a/44,
Kota Bharu, Kelantan.

Strength:
 The company has established early than YUMMY POTATO’S Company.
 Strategic place which is continuous people passes by their factory.
Weaknesses:
 All types of products provided are too expensive compared to YUMMY
POTATO’S.
 No value added product.
 Minor

3.4.2 Crackers Company

Jalan5a/44,
Kota Bharu, Kelantan.

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Strength:
 The company has established early than Yummy Potato’s Company.
 The product an offer for affordable prices.

Weaknesses:
 Location is not strategic because is not much people passes their company.
 Lack of promotion.

3.5 MARKET SHARE

3.5.1 Market Share before Entry YUMMY POTATO’S

Sales
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Figure 3: Market share before we opened new venture

Based on our study, Mister Potatoes Company is get a higher ranking for sales of snack potato
in market which is 55% compared Cracker Company was about 45%. That means, demand for
Mister Potatoes product is higher than Cracker Company.

3.5.2 Market Share after the Entry of YUMMY POTATO’S

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Sales of snack/biscuit potato

YUMMY POTATO'S mister potato crackers
25.00%

40.00%

35.00%

Figure 4: Market share after we opened new venture

Based on our research, YUMMY POTATO’S will conquer some of this section from other
competitors by providing 40% in offering our new product for the market share. We are sure that
our company will achieve the target because of a different product from our company and attract
more suppliers for our business. From that, Mister Potatoes will achieve 35% ranking and
Cracker will be lowest with 25% ranking.

3.6 Sales Forecast

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Sales Forecast For YUMMY POTATO’S Company

Year 2014

Month Unit Sales Collection

(RM)
January 11,600 x RM 3.50 40,600

February 11,980 x RM 3.50 41,930

March 12,950x RM 3.50 45,325
April 13,200 x RM 3.50 46,200
May 12,980 x RM 3.50 45,325
June 12,950x RM 3.50 45,325
July 13,200x RM 3.50 46,200
August 15,420 x RM 3.50 53,970
September 16,940x RM 3.50 59,290
October 17,850x RM 3.50 62,475
November 19,530x RM 3.50 68,355
December 20,320x RM 3.50 71,120
Year 1 178,920 626,115
Year 2 187,866 657,421
Year 3 197,259 690,292

Table 6: Our sale forecast

3.7 Marketing Strategies

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Marketing strategy is one of the important elements to market the organization services. The
organization must use many strategies to promote our services to the customer. For YUMMY
POTATO’S the marketing strategy is our strength to provide our services to the customer to
make them always remembers and we also provide the best product that is at the utmost
quality, where nobody would find any services better than our company. The marketing
strategies that we use in term to our product to market level are:

3.7.1 Quality

YUMMY POTATO’S only provide good quality of product, so that we can get many customers
since the customers always seek for the best quality provided to the customers. Quality plays a
main role in marketing strategies. The main thing that always we think before offering our
product to the customer is the quality. From the quality we can know that our customer will
satisfied with our product. When they are satisfied of the quality of the product, they will buy our
product, and we can get the regular customer to our product. To offer the best quality product to
our customers, we provide only different product that had many of benefit to all generations. We
only use the fresh ingredient to create Go Potato Biscuit. Get the Halal Certificate and suitable
for Muslim. The durability within one month, we are state expired date. Our product also is
reliability which is safe to eat. We use the right measurement to make sure our product is safe
and high quality.

3.7.2 Pricing

Although YUMMY POTATO’S Company is a high-end in terms of quality of the workers and
quality product that we had been used, our pricing structure remains affordable and in-line with
other company. Our pricing structure is based on the all calculation of our process production.
We are sure that peoples can own our products because of the suitable price. Our company
offer the product based on marketable price. Our company gives the reasonable price to our
product compare to other food company. The prices of our product are more affordable. Our
pricing structures also based on the survey that had been done plus the count of all cost that
include from the supplier to us. To attract more people to be our customers, we set the right
price.

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We focus on pricing strategy because it is the only element in the marketing mix that generates
revenue; an entrepreneur must understand the importance of pricing a product right. So our
company looked based on cost based pricing, value based pricing, and competition based
pricing.

3.7.3 Place

Yummy Potato’s Company is allocated at Jalan4a/44, 15150, Kota Bharu, Kelantan. This
building has already completed with basic amenities such as water and electricity. Kota Bharu is
a strategic place to open up our business because it is located in middle of a city where
surrounded with elite community and supermarket. Besides that, many customers from many
other areas will come to Kota Bharu such as from Tanah Merah, Pasir Putih, Kuala Krai and
other areas because of the strategic location.

3.7.4 Distribution Strategy

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Distribution strategy is aimed at establishing a structured and controllable distribution system to

ensure the product offered reaches the target market. A distribution channel moves goods from
producers to customers.

At the YUMMY POTATO’S Company, the forms of distribution channels use are shown below:

1)
Manufacturer Retailer Consumer

Our company also deals with retailers to sell our product at their shop. Consumers were easily
to purchase our product.

2)
Manufacturer Wholesaler Consumer

Many wholesalers today perform a double role as retailers. Purchase are made from producers
and sold directly to customer. The hypermarket concept is an example of selling to customers
through wholesalers. Our one of wholesalers is Mydin.

3) Manufacturer Wholesaler Retailer Customer

Manufacturer sells to the wholesalers who buys in large quantities and sell to retailers.

3.7.5 Promotions

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We start our promotions at media and non-media channel. From media channel, we use
television to create a creative advertisement to attract people for our product. We also use blog
and Facebook to support public with our company information. This will make them easier to
reach our area of promotion and maintain our relationship with customers only by internet
services. We choose to use the high cost on advertising because it is an introduction of the
business to the public. As for the introduction, we must expose our business in the early stage in
order to influence customers as much as we could. Thus, with high promotion in the early stage
of product, YUMMY POTATO’S will incurred high cost but will cover the expenses in future as
soon as possible with the effort done by heavy promotion that leads to increase of sales.

Before that, for more efficient to promote our business is through the non-media channel which
is Business Card, Bunting, Flyers, and Word-of-Mouth. The important method in term to
promote our company disseminates our business card to the customer because this is easy way
for them to know our salon. In the business card stated the name of our YUMMY POTATO’S
Company, telephone number, address and any details of our company can get it from the
business card. So customer can easily contact. Ask or deal with our company.

Next, we also use bunting and flyers to promote our company product. To make people aware to
the bunting, we use the attractive color and writing. We also locate our bunting at the strategic
places so that people can see the bunting clearly without any obstacles. We locate our bunting
near to the main road and strategic location that people passes around. This will help our
customers to locate our shop.

Moreover, we also use Word-of-Mouth. Word-of-Mouth is a networking through friends, family,

and business associates which is an inexpensive and effective marketing tool which YUMMY
POTATO’S utilizes to broaden our clientele base.

During seasonal time such as Chinese New Year, Hari Raya, Christmas, Deepavali, New Year
we also provides promotion for customer. We will provide discounts for every product that we
had offer to the customers.

3.8 Marketing Budget

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Items Fixed Asset Working Capital Other Expenses

(RM) (RM) (RM)

Fixed Asset
-Signboard 2,500

Working capital

-Sales Consultant 1,500

-Promotion 500
-Petrol and 600
entertainment
Other Expenses
Grand Opening 1000
Other expenses 1000
Total (RM) 2,500 2,600 2,000

Table 7: Marketing Budget

4.0 OPERATIONAL PLAN

4.1 Operational Objectives

To ensure the operational planning is runs successfully, the objectives need to be determined
and followed as below:-

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1. To give good customer service and ensure a good relationship between

customers and employees.

2. To minimize expenses and maximize the profits.

3. Identify the problems that might be occurred and find the solution to solve
with efficient and effectively
4. To prepare the process activity so this business able to fulfill customers
satisfaction where includes several aspect which are quantity, quality and
time

4.2 OPERATION PROCESS

At storage place, we keep potato (raw material). 1.15SG Fresh Potatoes, Weight
is about from 150g to 250g, Sugar density less than 1%.

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FUNDAMENTALS OF ENTREPRENEURSHIP ENT300

Storing the potatoes. Fresh potatoes will keep longest when stored in a cool, dry,
dark area with good ventilation. Ideally, storage areas should range between 5-
10° C. Send potatoes into production line. Control the feeding speed and the
quality of potato.

Washing Machine use Rough Washing. Wash away the dust on the potatoes.
Send cleaned potatoes into peeler by fix-quantity.

Peeler with process of peeling. Peel the skin of the potato.

Inspection Conveyor. Check the quality of peeled potato in the inspection

conveyor by workers.

Slicing process begin by adjust the sliced thickness of Auto Continuous Slice.
The available thickness is from 1.2mm to 2.0mm

Water Draining Conveyor.Drain the water in the potato chips in order to promote
the frying quality.

Conveyor Fryer. Frying process start with Fry potato chips by Automatic
Conveyor-Continued Type Oil Fryer.

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FUNDAMENTALS OF ENTREPRENEURSHIP ENT300

Oil draining and cooling by conveyor

American style seasoning machine. Seasoning process begins with spray

seasoning flour evenly. Mixed potato with berry in flour in one special
machine.

Computerized Weighing Packing M/C or semi-Auto packing machine used

to packing depend on buyer’s requirement of packing quality.

Selling to the market.

4.3 PROCESS FLOW CHART

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Greet the customer.

Invite the client to enter our shop.

Get the information from the client.

Brief the client about our product and price.

Make the product purchasing.

Send the client to the door.

Receive feedback from customer.

4.4 CAPACITY PLANNING AND MATERIAL REQUIREMENT

Manpower Requirement:

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FUNDAMENTALS OF ENTREPRENEURSHIP ENT300

Packaging 4 person

Seasoning Mixing 1 person

Boiler 1 person

Management 2 person

Total: 8 persons

Raw Material:

Raw Material : Fresh Potato or Frozen Potato

Consumption : 2,700-3,200kg/daily/8 hours

Raw Material : Finished Product = 3-4: 1 (Depend on the quality and size of potato)

Trimmings : Sugar, Salt, Flavor & Spice, Flour

Power Consumption and the Related Facilities:

Water : about 1,000L/Hr

Electricity : about 380V/50HZ. 18KW (24HP)

Diesel : about 30-40L/Hr

Edible oil : about 15kg/hr, fryer contain 520L.

4.5 LIST OF MACHINE AND EQUIPMENT

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FUNDAMENTALS OF ENTREPRENEURSHIP ENT300

NO DESCRIPTION QUANTITY PRICE (RM)

1 Production Section
Feeding Conveyor 1 set 5,000
Material Washing Machine 1 set 3,000
Storage Tank 1 set 1,000
Potato Peeler MP-211 1 set 1,500
Working Table 1 set 600
Inspection Conveyor 1 set 2,000
Feeder 1 set 3,000
Slicer Model CC 1 set 1500
Flat Type Knife 1 set 500
Wrinkle Type Knife 1 set 700
Washing Machine 1 set 1,500
Avon 1 set 1,100
Oil Inlet Conveyor 1set 1,000
2,000

2 Seasoning Section
Seasoning Inlet Conveyor 1 set 500
Seasoning Sprayer 1 set 600
Seasoning Drum 1 set 350
Outlet Conveyor 1 set 700
Flavor Mixer(V Type) 1 set 2,000
Spare Parts 1 set 1,000

Total 19 set 29,550

Table 8: List and machine equipment

4.6 LAYOUT PLAN OF OPERATION AREA/FACTORY

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4.6.1 Layout based on product

Office
TOI
LET
Station 1 Station 2

Receiving
Area

Washing area Fruits chopper

Observation Area

Enter Door Exit Door

Station 5 Station 4Station3

Finishing TOILET
Good Area
Packaging Area Avon Area Mixing Area

Figure 6: Layout based on product

4.7 OPERATION OVERHEAD

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FUNDAMENTALS OF ENTREPRENEURSHIP ENT300

Direct Materials Cost

Potatoes RM 2,000

Canola Oil RM 1,500

Salt RM 1,000

Berry RM 5,000

Direct Labor Costs

Worker’s Salaries RM 2,000

Overhead Costs

Supervisor’s Salaries RM 18,000

Rent RM 1,500

Utilities RM 1,050

Other Expenses RM 1,000

Total RM 21,550

4.8 OPERATIONS BUDGET

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FUNDAMENTALS OF ENTREPRENEURSHIP ENT300

OPERATIONS BUDGET
Fixed Monthly
Particulars Assets Exp. Others Total

Fixed Assets
motor vehicle (van) 10000 10000
machine and equipment 40590 40590
fridge 1,000 1,000
Working Capital
Raw Materials 9,500 9,500
Carriage Inward & Duty - -
Salaries, EPF & SOCSO 5450 5450
building rent 1,500 1,500
electricity and water 750 750
Fuel 300 300
- -
Pre-Operations & Other
Expenditure
Other Expenditure 1,000 1,000
Deposit (rent, utilities, etc.) - -
Business Registration &Licenses - -
Insurance & Road Tax for Motor
Vehicle 150 150
Other Pre-Operations Expenditure - -

Total 51590 17500 1150 70240

Table 9: Operations budget

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