Sample Ass 3
Sample Ass 3
Submitted to
MADAM NURUL LIYANA RAMLAN
TABLE OF CONTENTS
ACKNOWLEDGEMENT ............................................................................................................. 3
1.0 EXECUTIVE SUMMARY ...................................................................................................... 4
2.0 PRODUCT DESCRIPTION .................................................................................................. 5
3.0 TECHNOLOGY DESCRIPTION ..........................................................................................13
4.0 MARKET STRATEGIES AND ANALYSIS ...........................................................................17
5.0 MANAGEMENT TEAM ........................................................................................................28
6.0 FINANCIAL ESTIMATES ....................................................................................................40
7.0 PROJECT MILESTONES....................................................................................................51
8.0 CONCLUSION ....................................................................................................................52
9.0 APPENDICES .....................................................................................................................53
10.0 REFRENCES ....................................................................................................................59
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ACKNOWLEDGEMENT
Firstly, we extend our utmost gratitude to Allah S.W.T for granting us the opportunity to
successfully complete our ENT 600 assignment within the given time frame, while also blessing
us with good health, both mentally and physically, to accomplish this task.
Secondly, we would like to express our appreciation to madam Liyana, our lecturer, for
providing valuable guidance throughout the completion of this coursework. We are grateful for the
knowledge and insights shared, which have helped us successfully execute the assignment.
Thirdly, we would like to extend our deepest gratitude to our friends and classmates for
their continuous support and contributions, which played a significant role in the completion of
this assignment. We would also like to acknowledge the unwavering support from our parents
and family members, both emotionally and financially. Without the collective efforts of all these
individuals, we would not have been able to finish this coursework within the given timeframe.
Lastly, we would like to express our heartfelt thanks to our team members who worked
together harmoniously, showing full commitment towards the assignment, and completing it within
the designated time frame without any complaints.
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1.0 EXECUTIVE SUMMARY
Adeline Enterprise is a company that manufactures Pet Kit for animal collars. This company
has seen the need for technology for humans to care for their pets. Most of the time,
technology is enjoyed by humans but with creative thinking and skills from this company, they
have succeeded in creating Pet Kit. Through this product, today not only humans can enjoy
the technology but it can also be enjoyed by animals. After some consideration and
evaluation, the product chosen for the blueprint was the Pet Kit. It is a device that is purposely
created for pets. Any type of animal can wear a Pet Kit collar. This tool helps pet owners
monitor and manage their pet's daily tracker, location and health. The Pet Kit has been
equipped with current technology features such as trackers, Global Positioning Systems
(GPS) and sensors. This technology has been specially implemented on Pet Kit to maximize
its functionality. Pet Kit have a high standard of functionality as they are equipped with
technology compared to regular pet collars. The product is also user-friendly as pet owners
can monitor their pets via mobile phone 24 hours. Pet Kit targets pet owners as the target
market to purchase this product. It is very useful because pet owners may not have enough
time to monitor their pets. Therefore, the Pet Kit was created to help owners look after the
welfare of their pets. Daily trackers can show animal movements or daily moods based on
their movements. Then, the GPS will show the owner the location of their pet. This feature
can help owners to keep their pets safe and avoid any possible lost. Finally, the health sensor
is to detect the pet's health condition. If the pet is inactive, it will notify the pet owner about
their mood changes. Owners can detect pet health problems at an early stage and get a
veterinary examination. Overall, this product is well received by pet owners in the market.
They are impressed with the functionality of the product. They believe Pet Kit will help them a
lot to take care of their pets. The revolution in pet collars has brought a great step forward to
Pet Kit as it is much needed today. In line with the advancement of technology, people tend
to rely on technology to help them in their daily affairs. Therefore, Pet Kit t is the most suitable
product to create today.
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2.0 PRODUCT DESCRIPTION
Adeline Enterprise has developed an innovative product called Pet Kit. This is the
pet collar detection device that can locate a pet's collar with pinpoint accuracy, keep track
of its health and detect the daily activities of the pet. In addition, Pet Kit is a product with
features that have been created with the animal in consideration. Animals may use the
design because it is user-friendly. Pet owners can easily use the features of this product.
because they already possess them and surely comprehend how they perform.
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2.2 Application of The Product
Pet Kit was designed to overcome the issue of pet lost. This will help the pet to
manage and keep an eye on their animals. This product is fully equipped with the
technologies needed to ensure that it can perform to its full potential.
This Pet Kit product is universal to use by pets as a collar that is worn
around the neck. For example, dogs, cats, horses, and others. Therefore, our
product is not restricted in terms of the pet user because any pets are free to wear
it.
Pet Kit product has their own additional features in technology that are
required to connect with the mobile phone whether Android or iOS system.
b) Buckle Closure
This is because the pets are growing up. to ensure there is space for two or three
fingers between the collar and the pet's neck. Then, loose collars can also prevent
choking hazards. As a result of its breathability, it will keep your pet cool and
comfortable throughout long walks or other outdoor activities.
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c) Stainless Steel & Waterproof Pet Kit
The product must be water resistant because pets are exposed to the weather and
the outside. It is waterproof in pure water and has a significantly longer lifespan
because of the stainless steel. It also could withstand of corrosion.
The product may fail during the R&D phase because it is a trial-and-error
procedure. R&D iterations may take a product through before it is finished. To
increase product quality, it could undergo a lot of adjustments. Because the
process in R&D is to match the demands of the product, it takes a long time to
complete. Research and development take a lot of time and money to complete.
This is because, depending on trends and technology, the product can need extra
specifications. Since it is not a finished good, there is no profit for the owner, and
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it cannot be sold. Nevertheless, any product should go through the R&D process
because it might increase on comprehension of the issue and make the product
better. There are three stages in R&D process which are idea generation, idea
screening and market survey.
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2.4.1.3 Market Survey
After analyzing and conducting the market survey. The needs, problems,
or challenges of the product have been analyzed. After that, a product design is
built that fits the needs. The product should be planned before building the
prototype to ensure the details can be captured by the manufacturer. Such details
as the label and the placement of features should be drawn in detail. This is to
avoid the wrong product produced by the manufacturer.
Concept testing is used to gather input on our product from our target
market. We have determined that pet owners will be our target market because
this product will help pet owners care for their pets. Through idea testing, we were
able to gather both quantitative and qualitative data about the opinions of our target
market. We have decided to use a quantitative approach for our product and have
given our target market surveys. The demographics of the respondents, issues that
arise for pet owners, and an introduction to our product, Pet Kit, will all be included
in the questionnaire. A free-form question will also be included in the survey to
allow respondents to endorse and comment on our product.
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2.4.4 Build Prototype
This is the stage where the crucial part starts. The concept for the product
will be realized as a prototype. The prototype is a model of the finished item that
will be used as a test sample for mass manufacture and community promotion.
However, it was extremely typical for the prototype to change as the idea
developed, so it could be repeated until the actual product idea was realized.
The pet owner got the chance to physically explore and experiment with the
Pet Kits while using the Pet Kit application throughout the test marketing phase.
They were able to comprehend how the device functions and how it might benefit
them as pet owners thanks to this practical experience.
2.4.6 Commercialization
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2.5 Patent or Proprietary Features of The Product
2.5.1 Patents
Patents protect a unique invention for a specific amount of time. For the
term of the patent, producers are given the freedom from competition, which
encourages businesses or individuals to continue creating original new products
or services (Guide & August, 2012). In Malaysia, our product will apply to the
Intellectual Property Corporation of Malaysia (MyIPO) to obtain patents. Our Pet
Kit product will be under design patents whereas the uniqueness functions to
provide protection for a decorative pattern on a useful item.
2.5.2 Trademark
The trademark is the proprietary covers words and design components that
indicate a product's provenance. Therefore, our company will register our brand
name which is Pet Kit as a Trademark, and company logos as the provider of
collars for pets. This is beneficial to our company in protecting our product from
any duplication without consent. There are a few benefits when applying for a
trademark. For instance, origin allows for recognizing the origin and parties
involved in the market trade of a product. Then, it is important in Marketing because
trademarks are capable of the company in advertising and marketing. Consumers
frequently base their purchases on the ongoing effects of advertising.
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2.6 Opportunities for The Expansion of The Product Line
Luxury pet collars are becoming more popular among consumers, which is
changing the pet collar market globally. This is primarily related to customers' rising
disposable income and the rising popularity of owning pets. Because of this, our
Pet Kit product is a Premium pet collars are created of materials like silicone that
are waterproof. These items not only make pets more comfortable but also improve
their appearance.
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3.0 TECHNOLOGY DESCRIPTION
Our product, Pet Kit is the improvement made based on similar products in the market.
There are several technologies that have been implemented in our product which are Daily
Tracker, Global Positioning System (GPS) tracker and Health Sensor. All these technologies are
then being combined in one mobile application named as Pet Kit App. These technological
features are to assist the pet owners in taking a better care of their pets by observing the matters
that often being neglected by the pet owners.
Daily Tracker is a useful tracker that could identify the daily activities of a pet. In
other words, Daily Tracker is closely related to veterinary appointment. This is because Daily
Tracker can help the owners to track the veterinary appointment of their pet such as
vaccination appointment. This is because, vaccination appointment is very crucial to the
vaccination has their period that require the pet to receive their vaccination. Nowadays, pet
owners tend to feel occupied with their daily life that they tend to forget the vaccination
appointment. Vaccination appointment tend to be an annual event after three times monthly
vaccination. Thus, if the pet owner missed the vaccination appointment, the pet has to start
over in receiving the vaccination for the first three months. This will be tiring if the pet owner
keeps on forgetting the vaccination appointment. Thus, Daily Tracker helps the pet owners to
keep track on the dated of appointment for their pets to receive vaccination in order to avoid
from frequently visiting the veterinary as it can be costly. Daily Tracker can also be functional
system especially towards pet owners that own a large number of pets as it can be systematic
for the pet owners to arrange their vaccination appointment and veterinary visits. Other than
that, Daily Tracker can also give out alerts to the pet owners if the activity or routine done by
the pet is not as usual. This is because it may indicate to health-related problems that pet
owners may have not noticed. Hence, Daily Tracker helps for the pet owners to take a better
care of their pets. Through Daily Tracker, the pet owner can monitor their pet’s health even
they have to leave their pet behind.
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3.2 Pet Kit Application
Pet Kit Application is a mobile application that contains all the technological
features in Pet Kit. In this application, the pet owner can have access on all three
features through one application instead of three different applications. This is to make
it easy for the pet owners to observe their pet as the application can contain all the
necessary information on the pet. The application consists of calendar, Global
Positioning System (GPS) tracker and health features. Calendar will have the input of
all the dates related to the pet such as vaccination appointment and regular check-up.
This is to ensure that the pet owners did not miss the veterinary visit of the pet as it
can play an important role towards the pets’ health. Other than that, GPS tracker is
also included in the application. GPS tracker allow the pet owner to identify the location
of their pets once they were outside of the house. If the pet does not return home, the
pet owner can track the location of the pets. Hence, the pet owners may save their
pets if their pets are happen to be in danger that restricts them from going back home.
Therefore, it will decrease the case of missing pets in the area. Last but not least,
health features will have similar features as health application in smartphone however,
it is focused on the pets. It will help the pet owner to observe the condition of the pet
through blood pressure, heart rate, oxygen saturation as well as the temperature. If
the pets’ condition is unusual and their health features portray something wrong, the
application will notify the pet owners regarding the pet’s health. Hence, it can save the
pet’s lives before the pet’s condition becoming worst.
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GPS is one of element of technologies that implemented in the Pet Kits to determine
the location of pet on earth by providing the latitude and longitude to build an accurate
location of the pet. Based on the functionality, the GPS will be allocated the location of the
pet via an Internet connection through cellular and WiFi to get the signal. The technologies
will use ZX905 where the size of the component is 35mm x 25mm x 3.8 mm and included
with external GPS antenna. Moreover, the skill that require to implement these
technologies is understanding the electronic components and mastering the coding of
electronic system. To start using these technologies is only by switch on the Pet Kits and
connected the components to the official app to start monitoring the Pet Kits technologies
features. These technologies are produced due to problems that arise when people
always missing their pet without they are realized. So, with the development of Pet Kits
could give a new hope to the pet’s owner to keep watching their pet. Based on the figure,
The GPS will be built and attached in the Pet Kits structure then will be put on the pet’s
neck to detect the location of the pet if the pet cannot be found in the surrounding area.
Plus, the GPS will be seal by the waterproof Pet Kits structure to avoid any damage on
the GPS electronic components.
Health sensor is another electronic component that is built in the Pet Kits structure to
read and monitor the all the movement of the pet and give the result of whole activity that
the pet has done. The health sensor will be built with the high technology of sensor to any
small movement that has happens on the pet’s body. Thus, it will help to record all the
heartbeat and send the data to another electronic device that connected with the health
sensor and transform it into a data that can easily to read and understand. The electronic
components that involved in built the sensor system are the sensor unit, battery,
processing unit, antenna unit and radio board to detect every feature that in-line with the
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system such as to record the sleep pattern of animals, collect the medical data and more.
Other than that, the all the system will be connected to the software system that specialize
to the system. This component needs to be managed by an experience person and have
a high skill in dealing with the small electronic components due to the complex system
that build to detect all the feature. The regulation to use this system is only to ensure the
sensor is touch the skin of the animals to read the heartbeat of the pet and ensure the Pet
Kits components is connected to the official app. The improvement of the healthcare
sensor will be update from time to time to improve the system from having any further
problem. The reason the sensor technology is implemented in this product are because
to save the time of pet’s owner to do the medical check up in the nearby clinic when the
product can help to give the summary of the healthcare status of the pet and do the
preliminary action if something happens to their pet and avoid any serious injury due to
late examination to the pet.
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4.0 MARKET STRATEGIES AND ANALYSIS
4.1 Customers
Our product is known as a Pet Kits where it will help any pet’s owner and become
the second eyes for the pet’s owner to monitor all activities that their pet doing in a whole
day. Pet Kits consists of several technologies that really helpful for a person that always
worrying about their pet. The technologies that being implemented in the Pet Kits are the
daily tracker of pet activities such as calculation of footsteps that the pet taking in a day.
Next, the Global Positioning System (GPS) that helps to detect the location of the pet
when their playing outdoor and health sensor to monitor the pet healthcare such as the
sleep duration and appointment of regular check-up. Thus, all of these technologies that
being implemented can be read by using an application that called as “PET KIT”. This
product is developed to help the pet’s owner who struggling to monitoring their pet from
day to day especially within the working hours where the pet’s owner going to work. Thus,
this product is suitable for the pet’s owner that cannot always staying beside their pet.
Moreover, the major purchaser of this product comes from the owner of the pet
that always go out due to their duty as a worker. Therefore, most of our target market are
living in Selangor because the population of the pet’s owner that living in the Selangor that
working on the weekdays and must leave their beloved pet at homes is higher compared
to others. Thus, the potential to get more customers to our product of Pet Kits has
increase.
In addition, the potential customers which is pet’s owner that living in Selangor can
purchase and reach our product through the official website or visit our store to view our
product Pet Kits closely and find more details about our product if they are having any
doubt. Plus, to keep the quality of our product, the customers can only purchase of our
product directly from the official store and official website. Other than that, to reach the
customers is quite easy due to the Pet Kits is a new product in the market and it will
increase the feel of curiosity of the customers to known better about our product and the
customer is expected to easy receptive the products due to their still no product that being
existing in the market.
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4.2 Market Size And Trend
Over the course of three years, the demand for Pet Kit in the market is
projected to increase. This growth can be attributed to the growing adoption of new
technologies by pet owners, which enables them to monitor their pets more
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efficiently. With a minimum purchase price of RM 299, we estimate that
approximately 0.05% of pet owners in Selangor will be attracted to our product.
Consequently, the total market size for our product is expected to reach
approximately RM 1,045,603. Given that our product is a novel innovation
developed by us, it holds significant potential for profitability. In today's technology-
driven era, individuals are inclined towards embracing new technologies for the
safety and well-being of their pets, aligning with the latest technological trends.
To effectively market our Pet Kit, we have established yearly growth targets
to cater to the evolving needs of our customers. Here is an estimation of the overall
market size for the second and third years, respectively:
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Figure 4.2.2: Market size trend
In the future, our plan is to strategically expand the market size for our product.
We aim to penetrate all regions within Malaysia, reaching customers in every state across
the country. Moreover, if we receive a highly positive reception and demand for our
product, we are even considering expanding our operations to international markets. By
exploring opportunities abroad, we aim to introduce our product to a global audience and
establish a strong presence in various countries around the world.
A variety of factors drive market growth, including demand, supply, and the general
dynamics of an industry. Understanding these characteristics is critical for companies to
navigate and capitalise on possibilities for development. In this section, we will look at
some of the important elements that influence market growth.
The status of the economy is critical to market growth. GDP growth, employment
rates, inflation, and consumer confidence all have a direct impact on consumer spending
habits and purchasing power (Batrancea, 2021). Consumers are more inclined to increase
their spending during periods of economic boom, resulting in market growth across a
variety of businesses.
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Technological developments and innovations have the ability to revolutionize
sectors and drive market growth (Verspagen & Kaltenberg, 2016). Breakthrough
technologies have the potential to establish new markets, disrupt current ones, and boost
efficiency and production. Businesses that embrace and exploit technology to create novel
goods, services, and business models frequently see rapid market growth.
Resistant Water and dust Water and dust Water and dust
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Performance The easiest way to It is long-Standby Throughout the day
keep track of the Free App Platform and night, the Smart
things such as keys, Tracking Device for Dog Collar can
wallet, luggage, Pets with Smart monitor the dog's
backpack, and more, Tracker Locator heart rate and
all in the Find My app. Collar for Dogs. It can respiration rate. The
It is a replaceable detect the location of readings are taken by
battery that lasts over the pets. The Battery Invoxia using a variety
a year. The AirTag can Capacity is 500mAh, of radar sensors and
be activated by users 3.7V built-in battery. artificial intelligence.
to play a sound from The GPS positioning
the app. "Precision upload time can
Tracking" on iPhones reach 30 seconds /
with the U1 chip can 10 minutes / 1 Hour
provide precise set. While the GPS
distance information sensitivity is -
and directions to an 159dBm
AirTag. Utilizing ultra-
wideband for precision
tracking
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Weakness • Focus on • Focus on the • Focus on the
tracking the location health
location. tracking. detector.
• Cannot be put • GPS position • Highly cost in
on a pet's accuracy is 5- terms of
collar by 15M only. security
themselves • Applicable for • Applicable for
either; must pet dogs only pet dogs only.
get an Apple
AirTag Loop
which cost.
• The accuracy
is for the
things, not the
pets.
4.3.2 Fundamental Value Added in Pet Kit Product To The Customer and
Competitors
(a) Waterproof
Make sure your pet's smart collar is waterproof to maintain their wellbeing
and ensure the collar lasts a long time. If your pet likes to swim, play outside, or
spend time in the elements, this is especially important. Our material of Pet Kit
product is silicone rubber with high quality of waterproof. It can be exposed to rain
or in water.
(b) Durable
Your pet can avoid escaping and putting itself in danger by wearing a strong
leash and collar. A weak collar or leash might quickly snap, endangering your pet.
Because our Pet Kit product comprises of strong, long-lasting materials like
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silicone rubber, stainless steel whereas it is essential to choose our product for
your pet.
Pet Kit product is equipped can track the daily activities of the pet and
reminder for the pet owner about the vaccination date, regular check-up and
others. This is fundamental value exist in our product to meet the expectation and
need of the customer directly to look difference with other competitors in the global
market.
The estimated sales for Pet Kit the market share would increase 15% every year. This is an
assumption made based on the market survey where many people are interested in the
product and tend to buy it. There are also many pets’ owner in Malaysia. We believed that
they would purchase this for their pets. Thus, in three (3) years more we will able to make
sales around RM5,000,000.00. Our product is different with other product in the market so it
would the market crowd.
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Product Market Share and Sales
Year
2024 2025 2026
Market Share (%) 10% 12% 14%
Total Sales in Unit 4060 units 4466 4913
Total Sales in RM RM 1,213,940 RM 1,335,334 RM 1,468,867
Our company have decided to adopt Product orientation strategy as our marketing
strategy. This is because our company focused on the quality of the product in order to for the
consumers to have great satisfaction when purchasing our product. Product orientation is
suitable with our product as we believed that despite having many competitors that sell similar
product as Pet Kit, however, our product is different as we have implemented another
technology that could not be found in other similar products which are Daily Tracker. Due to
the competitive market for Pet Kit, hence it is suitable to adopt Product orientation as our
marketing strategy. Product orientation enhanced on the quality of our product and the
technology investment in the product which is suitable with our product, Pet Kit.
b. Pricing
Pricing can be significant for our products in order to make it worth for the consumers that
purchase our product. Price can be defined as the amount of money that the consumers are
required to pay in order to obtain the product. Based on our surveys on pet owners in
Selangor, many respondents agreed that our product should be priced from less than RM100
to Rm199. However, the price does not reflect the technologies implemented in our products.
In order to make our product is a premium product, we have decided to priced our product at
RM299 as it is suitable with the features available. Hence, it allows the consumers to feel
worth purchasing the product due to the premium price.
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c. Sales tactics
Our company has decided to adopt distributors and using own sales force in order to
market our product. We have decided to promote our product through social media platform
as it is cheaper as compared to other marketing platforms. We also have decided to rent a
booth during a pet event at shopping complexes in order to attract the attention from our target
market. This will help to increase the sales of our product and boost the relationships with our
potential customers. Hence, we can gain trust from our target audience.
Currently, digital marketing has domination the marketing sector. Hence, we have to
involve our company in digital marketing in order to keep up with the trend. We have decided
to advertise and promote our product on social media platforms such as Facebook, Instagram
and Tik Tok. Other than that, we also decided to use conventional marketing such as
brochures and flyers in order to reach an older generation of our targeted audience. Through
these platforms, we are able to promote our products at different group of age.
f. Distribution
One of the methods that we used to distribute our product is through own sales force.
We have decided to sell our product from our office as we tend to promote the product through
social media platform. Hence, we can pack and delivered the product from our factory without
having to rent a shop. Other than that, we have decided to join any pet related events and set
up the booths as pet related events tend to attract our target market which is the pet owners.
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We also use distributors by distributing our products at selected pet shops in Selangor. Hence,
it will increase the sales of our product as we distributed at channels that are often visited by
the pet owners.
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5.0 MANAGEMENT TEAM
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5.2 Key Management Personnel
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Financial Manager
30
Marketing Executive
31
Quality Control Manager
32
Administration Manager
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5.2.1 Duties And Responsibilities Of Each Position
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deliver comprehensive reports on campaign
outcomes.
● Execute effective marketing strategies to drive
business growth and success.
● Promote and enhance the visibility of the
business, products, and services.
4. Quality Control ● Conduct thorough quality inspections on
Manager production processes to ensure adherence to
strict standards.
● Enforce compliance with health and safety
regulations and guidelines.
● Observe the final product, meticulously comparing
its properties against the specified requirements.
● Authorize the acceptance of products that meet
the desired criteria and reject any items with
defects.
● Prepare detailed reports outlining the findings and
promptly share them with the appropriate
executives.
5. Administration ● Strategize and implement administrative
Manager procedures and systems, aiming to optimize
efficiency and streamline processes.
● Monitor office supply inventory and procure new
materials within allocated budgetary limits.
● Facilitate seamless and efficient information flow
within the organization to support other business
functions.
● Undertake recruitment and training activities to
attract and develop competent employees.
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5.3 Management Compensation and Ownership
Chief Executive
Officer (CEO) RM 4,000 60% RM 60,000
Noor Syazana
Binti Mohd Shukri
Najwa Hannah
Binti Azahar
Quality Control
Manager RM 2,500 8% RM 8,000
Administration
Manager RM 2,400 6% RM 6,000
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Nur Athirah Binti
Zulkarnain
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5.3.1 List of Remuneration
Chief 1 RM RM 480 RM 80 RM
Executive 4,000 4,560
Officer (CEO)
Financial 1 RM RM 324 RM 54 RM
Manager 2,700 3,078
Marketing 1 RM RM 336 RM 56 RM
Executive 2,800 3,192
Quality 1 RM RM 300 RM 50 RM
Control 2,500 2,850
Manager
Administratio 1 RM RM 288 RM 48 RM
n Manager 2,400 2,736
TOTAL RM
16,416
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5.4 Supporting Professional Advisor and Services
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6.0 FINANCIAL ESTIMATES
In terms to achieve the financial goal for the short term until the long term, creating
comprehensive financial planning is necessary because financial planning is a process of
evaluating the financial statement of an individual or business itself. Furthermore, in constructing
the financial planning, there are a few compulsory elements to include in the financial planning
such as income, debt, savings, taxes, investments, insurance, and any elements that are involved
in financial. Other than that, the structure of financial planning is very important because it
determines the net profit of the business and oversees the financial situation of the business or
individual finances. Thus, when implemented financial planning, it can ensure the maintain
stability, the sufficient fund also ensure the supplier of the funds are easily invested in the
companies that provide the financial planning due to financial planning is one of the ways to
identify the business has good financial planning and has a potential to achieve the financial well-
being.
Moreover, the benefit of having financial planning will get better cash flow management
because the cash flow included in the financial planning enable the business to manage the cash
flow more effectively. Other than that, it could help in making better decisions because financial
planning could be a guide to the future decision relating to financial planning and give the power
to control the financial future.
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6.2 Start-Up Cost
Any expenses incurred when starting a new business such as administrative cost that
involves land and building, office equipment, furniture and fittings and vehicle is considered an
element in the startup cost. The same goes for operations costs that included such as machines
and appliances. Therefore, this section will display the amount of start-up cost that will be involved
in producing the Pet Kits product. However, any expenses in the startup might be different due to
differences in the type of the business and size of the business.
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6.3 Working Capital
Working capital is an amount of capital that is used to determine the current assets and
current liabilities. The formula to calculate the capital value is by current assets minus current
liabilities. Thus, the final result from the working capital is a marking point of the short-term liability.
If the result of the working capital shows a positive sign, it is an indicator that the business has a
healthy financial. Meanwhile, if the working capital balance shows a negative sign it refers to
insolvency. Therefore, working capital for Pet Kits is illustrated in the table below.
Administrative
Rent 8,000.00 8,000.00
Utilities 5,000.00 5,000.00
Office supplies 2,000.00 2,000.00
Operations
Purchase of Raw Materials 478.00 478.00
1: Silicone Rubber
Purchase of Raw Materials 5,825.00 5,825.00
2: Buckle
Purchase of Raw Materials 16,893.00 16,893.00
3: Stainless steel
Purchase of Raw Materials 5,359.00 5,359.00
4: Electronic Component
Carriage Inwards 4,194.00 4,194.00
Salaries, Wages, EPF and 16,416.00 16,416.00
SOCSO
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Other expenditure 75,939.00 75,939.00
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6.4 Start-up Capital and Financing
Start-up finance is the initial capital that is essential for any entrepreneur to launch their
business and satisfy the necessity to start the business such as office space, hiring, and marketing
resources. Therefore, start-up capital is a crucial phase when an entrepreneur intended to start a
business because to start a business requires a large amount of money. Thus, the capital can be
collected either from the self-fund or solicit fund that comes from investors, sponsors, or loans.
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6.5 Cash Flow Statement
Cash flow analysis is a vital tool for firms to efficiently manage their finances. It assists
firms in identifying impending cash shortages, budgeting for future spending, and making sound
financial decisions. Businesses can evaluate whether they have enough cash on hand to pay their
bills and invest in growth prospects by analyzing their cash flow. Overall, cash flow is an important
part of financial management that assists firms in maintaining their financial health and achieving
their objectives. Plus, cash flow is one of the important elements in the financial process after the
financial statement and balance sheet.
CASH OUTFLOW
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Pre-operations
Deposit (rent & utilities) 29,000.00
Fixed Assets
Purchase of Fixed
Assets (Land &
Building)
Purchase of Fixed 274,400.00
Assets (Others)
Loan Payment
(Principal)
Interest on Loan 32,510.00 34,136.00 35,842.00
Tax Payable 20,445.00 18,820.00 17,113.00
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6.6 Income Statement
The important income statement is the revenue of the company and then the sub-elements
of the expenses that included like sales, cost of the sales, and expenditures that are involved
such as pre-operation and incorporation expenditures, general and administrative expenditures
and more where the main purpose is to get the net income or profit. By referring to the income
statement, it will help in determining the information about the company’s financial performance
in terms of profitability and performance of the company compared to other industry peers.
Moreover, income statements are very crucial to any lender, investors and stakeholders
to assess the company's finances and make their decision for future financials. Therefore, the
income statement is an important tool for the business organization in order to evaluate the
financial performance and make a sound decision regarding the operation and strategy of the
company.
Labour
Salaries, EPF & SOCSO 196,992.00 206,842.00 217,184.00
Factory Overhead
Depreciation of 74,667.00 74,667.00 74,667.00
Fixed Assets
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Total Factory 74,667.00 74,667.00 74,667.00
Overhead
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Net Income Before Tax 198,178.00 176,104.00 234,095.00
Tax 0 0 0
Net Income After Tax 198,178.00 176,104.00 234,095.00
Accumulated Net 198,178.00 374,282.00 608,377.00
Income
The balance sheet is a financial statement that listed the business assets, business equity
and business liabilities. The purpose of the balance sheet is to overview if the business has a
balanced financial structure in terms of total assets and total equity and liabilities. Moreover, the
balance sheet is one of the main components that is very important other than cash flow and
income statement because it is showing the summary of the financial status of the company.
Therefore, in a clear word, the balance sheet should be assets equivalent to liability plus equity.
Thus, the table below is representing the balance sheet of the company that produced the
Pet Kits from year 1 until year 3.
Current Assets
Inventory of Raw
Materials
Inventory of Finished
Goods
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Cash Balance 454,377.00 688,486.00 978,913.00
454,377.00 688,486.00 978,913.00
Other Assets
Deposit 29,000.00 29,000.00 29,000.00
Equity
Share Capital 99,165.00 99,165.00 99,165.00
Retained Earnings 198,179.00 374,283.00 608,377.00
Liabilities
Loan Balance 368,967.00 335,505.00 300,370.00
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7.0 PROJECT MILESTONES
DURATION (WEEKS)
NO. ACTIVITIES 01 02 03 04 05 06 07 08 09 10 11 12 13 14
1. Idea concept generation
2. Preliminary research
3. Idea screening
4. Visualizing idea
5. Consideration of raw materials and
suppliers
6. Developing prototype
7. Developing product
8. Incorporation of the product
9. Completion of design
10. Concluding advance research
11. Planning of marketing strategy
12. Financial formation
13. Product manufacturing
14. Product promotion
15. Product launching
16. Business maintenance
17. Sales review
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8.0 CONCLUSION
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9.0 APPENDICES
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54
55
56
57
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10.0 REFRENCES
Batrancea, L. M. (2021). Empirical Evidence Regarding the Impact of Economic Growth and
Inflation on Economic Sentiment and Household Consumption. Journal of Risk and Financial
Management, 14(7), 336. https://doi.org/10.3390/JRFM14070336
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