INTRODUCTION

Our business’s name is SPA ‘S’. We get this name from all partnerships’ name
begin from consonant S. Spa ‘S’ is a Bumiputera’s Company and categorized as
hospitality industry. This spa provides services of body massage, hair styling, facial and
skin treatment, full body treatment, make up application, manicure and pedicure. It is
located at No1, Lorong Perda Barat 1, Bandar Perda, 14500 Bukit Mertajam, Pulau
Pinang.

Our business partnership is from of business study. There are five partners in our
company. They are Shazana Asmaizzati Bt Shata as General Manager, Siti Harishah Bt
Azman as Administration, Siti Nurul Farah Bte Abdol Majid as Operation Manager,
Nurul Shafiza Bt Mohd Shahrudin As Financial Manager and Sabratun S’adiah Bt
Zulkafli As Marketing Manager. An agreement has been signed up by all five partners.
Date of commencement has been fixed which is on January 2009.

This business has its own potential to expand in business industry, because there are only
3 spas in Bandar Perda and have strong base to stand in hospitality industry. There are
several factors of choosing service of spa as the element of business:
• The high demand from women nowadays that importance of Health and Beauty
• No competitive at high demand area.
• Demand from public users at this area like students that provide service of spa
that affordable to them.
• Has sufficient expert in the related field.

In the future, we plan to expand our business into several branches. Our target period
would be 7 to 10 years. We also try to achieve the world-class quality of giving
satisfaction spa services. For long-term period, we would like to become Malaysia’s
number one spa service.

1
1.1 PURPOSE OF BUSINESS PLAN

Meanwhile, partnership would like to contribute an amount of RM 100,000

which is specifically divided based on their individual percentage like has been agreed in
the partner’s agreement.

2
1.2 BUSINESS BACKGROUND

Name of Company : SPA ‘S’

Office Address : Spa ‘S’,
No 1, Lorong Perda Barat 1,
Bandar Perda,
14500, Bukit Mertajam ,
Pulau Pinang.
Correspondence Address : Spa ‘S’,
No 1, Lorong Perda Barat 1,
Bandar Perda,
14500, Bukit Mertajam ,
Pulau Pinang.

Partners : a) Shazana Asmaizzati Bt Shata

b) Siti Harishah Bt Azman
c) Siti Nurul Farah Bt Abdol Majid
d) Nurul Shafiza Bte Mohd Shahrudin
e) Sabratun S’adiah Bt Zulkafli
Website Address : http://www.spas.com.my
Email Address : spas@yahoo.com
Tel. Number : 04-3138697
Fax. Number : 04-3138698
Main Activity : Full body treatment
Date of Commencement of Business : July 2009
Date of Business Registration : 1st Dec 2008 :
Status of Ownership : Bumiputera
Motto : Health and Beauty

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Mission, vision and objectives of company

Mission
Spa ‘S’ mission are to be one of the spa that provide good service to our
customer and can be the most popular spa in Malaysia.

Vision
Our vision is to success in gaining as many profits as our company can and to
have competitive that can easily put out our competitor.

Objectives
In term of that, our business is still new in Malaysia, so we define our short term plan
indeed to achieve our goals. To introduce our spa to the citizens in the northern region is
our core objective. This will make our management to work hard, so that the goals that
we set can be achieve in time.

The company’s motto

Company’s motto: ‘Healthy and beauty ’

All the partnerships have agreed to use this motto as our company’s motto.
Healthy and beauty are the need and important to all people especially women. All
women especially teenagers and mid ages need the spa treatment to face the challengers’
world. These services will help women more relax and confidently to face the modern
world.
We prefer to place our motto on a signboard together with the company’s logo.
The combination of motto and logo will provide more efficiently for the public.

4
The company’s logo

Meaning:
• Crown - power of services
• Pink colors - women
• White colors - purity
• Lady - modern women of today

5
1.3 BACKGROUND OF PARTNERS

Name : Shazana Asmaizzati binti Shata

Position : General Manager
I/c Number : 790729-03-5098
Date of Birth : 29 July 1979
Age : 30
Sex : Female
Permanent Address : Kg, Kubang Bongor, 16400 Melor, Kota
Bharu, Kelantan, Malaysia.
Correspondence : No1 Lorong Perda Barat 1, Banda Perda,
14500 Bukit Mertajam, Pulau Pinang
Telephone number : 04 - 3138697 (office)
017 – 5623316 (handphone)
Marital Status : Married
Race : Malay
Religion : Islam
Qualification : 1) Master in Business Study University of
Newcastle, Australia
2) Dip. In Accountancy BBA (hons)
(Business management)

6
 3) Certificate of massage and make up skill from IKBN
Course Attended : 1) Human Resources Management Seminar.
2) Entrepreneur Medec Seminar
3) Leadership seminar
Skill : 1) Computer literature
2) Office management

3) Fluency in English and France

Experience : 1) Involved in family businesses.
2) 3 years experience as Human Resources Executive
Current Job : Management Resources Executive
Business Experience : Run a family businesses
Email : zana_spas@yahoo.com

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Name : Siti Harishah bte Azman
Position : Administration Manager
I/c Number : 820908-04-5486
Date of Birth : 8 September 1982
Age : 27
Sex : Female
Permanent Address : No 627-1 Batu 7 ½, Pengkalan Perigi, 76400 Tanjung
Keling, Melaka
Correspondence : No1 Lorong Perda Barat 1, Banda Perda,
14500 Bukit Mertajam, Pulau Pinang
Telephone Number : 04 - 3138697 (office)
012 – 2408221 (handphone)
Marital Status : Single
Race : Malay
Religion : Islam
Qualification : 1) Diploma in Accountancy
2) Bachelor in Business Study
3) Certificate of massage and make up skill from IKBN
Course Attended : 1) Human Resources Management Seminar.
2) Entrepreneur Medec Seminar
Skill : 1) Computer literature
2) Fluency in English and Mandarin
Experience : 1) Involved in family business.

8
 2) 3 year experience as Administration Manager.
Current Job : Administration Manager in Celcom (M) Sdn. Bhd.
Business Experience : None
Email : risha_spas@yahoo.com

9
Name : Siti Nurul Farah bte Abdol Majid
Position : Operation Manager
I/c Number : 821028-04-5052
Date of Birth : 28 October 1982
Age : 27
Sex : Female
Permanent Address : No4 Lorong 1, Jalan BKI 10, Taman Bukit
Katil Indah, 75460 Bukit Katil, Melaka
Correspondence : No1 Lorong Perda Barat 1, Banda Perda,
14500 Bukit Mertajam, Pulau Pinang
Telephone Number : 04 - 3138697 (office)
012 –9164247(handphone)
Marital status : Single
Race : Malay
Religion : Islam

Qualification : 1) Diploma in Business Study

2) B.A in Marketing UUM
3) Certificate of massage and make up skill from IKBN
Course Attended : 1) Operation department conference
2) Entrepreneur medec seminar
3) Computer literature

10
Skill : 1) Fluency in English and mandarin
2) P u b l i c s e r v i c e
Experience : 1) Marketing manager in Fama.
2) 2 year experience as bank manager
Current Job : Operation Executive
Business Experience : None
Email : farah_spas@yahoo.com

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Name : Nurul Shafiza bte Mohd Shahrudin
Position : Financial Manager
I/c Number : 820106-23-5130
Date of Birth : 6 January 1982
Age : 27
Sex : Female
Permanent Address : No 52, Kg Banngol, 22100 Setiu, Terengganu
Correspondence : No1 Lorong Perda Barat 1, Banda Perda,
14500 Bukit Mertajam , Pulau Pinang
Telephone Number : 04 - 3138697 (office)
012 - 3435075 (handpone)
Marital status : Married
Race : Malay
Religion : Islam
Qualification : 1) Diploma in Accountancy
2) Bachelor in Accountancy
3) Certificate of massage and make up skill from IKBN
Course Attended : 1) Finance seminar.
2) Organization management seminar
3) Course of Microsoft office at Terengganu
Skill : 1) Computer literature
2) Fluency in English and Mandarin

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 3) Good in account subject
Experience : 2 years experience as accountant
Current Job : Financial Manager
Business Experience : Run a family business
Email : sha_spas@yahoo.com

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Name : Sabratun S’adiah bte Zulkafli
Position : Marketing Manager
I/c Number : 820812-14-5896
Date of Birth : 12 August 1982
Age : 27
Sex : Female
Permanent address : No.6, Jalan AU 1A /2C, Taman Keramat, 54200 Kuala
Lumpur
Correspondence : No1 Lorong Perda Barat 1, Banda Perda,
14500 Bukit Mertajam, Pulau Pinang
Telephone number : 04 - 3138697(office)
012 – 3274985(handphone)
Marital status : Single
Race : Malay
Religion : Islam
Qualification : 1) BA (hons) Business Management,
University of Adelaide Australia
2) Certificate of massage and make up skill from IKBN

Course Attended : 1) Marketing department conference

2) Entrepreneur medec seminar
Skill : 1) Computer literature

14
 2) Fluency in English and mandarin
Experience : 1) Marketing manager in Fama.
2) 3year experience as Bank Manager
Current Job : Marketing Officer
Business Experience : None
Email : atorn_spas@yahoo.com

1.4 PARTNERSHIP AGREEMENT

15
Signature of the witness, Signature of the share holder,
………………………… ……………………………..
A.SUBRAMANIAM, SHAZANA ASMAIZZATI
BT SHATA
Qualify Federation Lawyer (790729-03-5098)
P.H.D / MASTERS in law,
Harvard University Signature of the share holder,
USA ……………………………...
SITI HARISHAH AZMAN
(820908-04-5486)

Signature of the share holder,

……………………………...
SITI NURUL FARAH
ABDOL MAJID
(821028-04-5052)

Signature of the share holder,

……………………………...
NURUL SHAFIZA MOHD SHAHRUDIN
(820106-23-5130)

Signature of the share holder,

……………………………...
SABRATUN S’ADIAH ZULKAFLI
(820812-14-5896)

ADMINISTRATION PLAN

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 2.1 ORGANIZATION CHART

GENERAL
MANAGER

SHAZANA
ASMAIZZATI BTE
SHATA

OPERATION FINANCIAL
MARKETING MANAGER MANAGER
ADMINISTRATI
MANAGER
ON MANAGER
SITI NURUL NURUL
SABRATUN FARAH BTE SHAFIZA BTE
SITI HARISHAH
S’ADIAH BTE ABDOL MAJID MOHD
BTE AZMAN
ZULKAFLI SHAHRUDIN

CLERK
(Receptionist)

2.2 LIST OF ADMINISTRATIVE PERSONNEL

17
 Position No. of workers Qualification Resources
General Manager 1 Masters Partner
Administration Manager 1 Degree Partner
Marketing Manager 1 Degree Partner
Operation Manager 1 Degree Partner
Financial Manager 1 Degree Partner
Total 5

2.3 SCHEDULE OF TASK AND RESPONSIBILITIES

POSITION TASK AND RESPONSIBILITIES

GENERAL MANAGER o In change as a leader in
all activities in the company.

18

ADMINISTRATION MANAGER
MARKETING MANAGER
OPERATIONAL MANAGER
19
o Give instruction to all
workers.
o Receive reports from all
managers about the company operation.
o Monitor the
development of the company in the
market
o Responsible to the
worker’s achievement and solve
employee’s problem and difficulties
o Prepare all
documentation of the company
o Administration and manager
organization matter to achieve
organization goal.
o Investigates and examine procedure
o Make recommendations for
improvements
o Managing the working schedule,
evaluating and preparing the staff
performing.
o Responsible in find the new
chance of the new market.
o Maintain the profitability and
meet collection target.
o Responsible in introduction the
business to the public and private.
o
o Giving good service to customer
o Responsible to all the operational
activities in the business
o Ensure that customer will satisfy with
the business agenda
o Planning the overall operation and
 future expansion of business
FINANCIAL MANAGER o Manage credit control and evaluation
o Manage the document flow between
internal process owner and external
partner.
o Develop the business account, policies,
procedure and auditing, budgeting and
financial matter
o Fully authorities in financial
department

2.4 SCHEDULE OF REMUNERATION

POSITION NO MONTHLY 11% EPF 2% SOCSO

20
 SALARY (RM) (RM) (RM)

GENERAL 1 3800 418

MANAGER
ADMINISTRATION 1 3200 352
MANAGER
OPERATION 1 2500 275
MANAGER
FINANCIAL 1 2500 275
MANAGER
MARKETING 1 2500 275
MANAGER
CLERK 1 800 88 16
TOTAL 15300 1683 16

2.5 LIST OF OFFICE EQUIPMENT AND SUPPLIER

LAYOUT OFFICE

21
2.6 ADMINISTRATION BUDGET

22
 FURNITURE & UNIT PRICE/UNIT TOTAL
FITTING (RM) (RM)

MANAGER TABLE 5 300 1500

MEETING TABLE 1 500 500
MANAGER CHAIR 6 100 600
COUNTER TABLE 1 400 400
CHAIR 7 50 350
CABINET FILE 6 100 600
SOFA 1 1000 1000
TELEVISION 1 250 250
CABINET
TOILET 1 500 500
EQUIPMENT SET
SINK 2 50 100
DECORATION 11 10 110
PLANT
RACK 1 50 50
TOTAL 43 5960

BUDGET OF MECHINE AND EQUIPMENTS

EQUIPMENTS UNIT PRICE/UNIT TOTAL

(RM) (RM)
AIR-CONDITIONER 7 800 5600
COMPUTER 6 1750 10500
FAX-MACHINE 1 430 430
FIRE 2 250 500

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EXTINGUISHED
FIRST AID KIT 1 50 50
TELEPHONE 6 20 120
CUPBOARD 1 200 200
FAN 1 50 50
TOTAL 17450

PRELIMANARY EXPENSES

ITEMS COST
(RM)

BUSINESS AGREEMENT 150

STAMP DUTY 50
LAW FEES 600
TOTAL 800

BUDGET OF REMUNIRATION

POSITION NO MONTHLY 11% EPF 2% SOCSO

SALARY (RM) (RM) (RM)

GENERAL 1 3800 418

MANAGER
ADMINISTRATION 1 3200 352
MANAGER
OPERATION 1 2500 275
MANAGER
FINANCIAL 1 2500 275
MANAGER

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MARKETING 1 2500 275
MANAGER
CLERK 1 800 88 16
TOTAL 15300 1683 16

ADMINISTRATIVE BUDGET

ITEM ASSET MONTHLY OTHER

EXPENSES EXPENSES EXPENSES
(RM) (RM) (RM)

FURNITURE & 5960

FITTING
EQUIPMENTS 17450
RENT OF 2800
PREMISES
ELECTRICITY 600
WATER 50
TELEPHONE 300
SALARY 15300
EPF 1683
SOCSO 16

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 DEPOSIT ON 4000
PREMIS
DEPOSIT ON 250
ELECRICITY
DEPOSIT ON 150
WATER
DEPOSIT ON 200
TELEPHONE
PRELIMINARY 800
EXPENSES
STATIONARY 100
RENOVATION 6000
TOTAL 23410 20749 11500

Contribution of Equity
Name Percentage Real value Post in company
(%) (RM)

Shazana Asmaizzati bt 30% 30,000 General manager

Shata

Siti Harishah bt Azman 20% 20,000 Administration

manager
Siti Nurul Farah bt Abdol
Majid 20% 20,000 Operation manager
Nurul Shafiza Bte Mohd
Shahrudin 20% 20,000 Financial manager

Sabratun S’adiah bt 10% 10,000 Marketing manager

Zulkafli

TOTAL AMOUNT 100% 100,000 -

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 MARKETING PLAN

3.1 PROFILE OF SERVICE

Marketing is important criteria in business. According to Oxford-advanced

learner’s dictionary, marketing plan can be defined as the theory and practice of
presenting, advertising and selling thing. Marketing plan is also referred to written
document that acts as a guidebook of marketing activities for the marketing manager. It
designed all the activities relating to the marketing objectives and the changing of
marketing environment. A good management had to be concern and make sure that all
plan runs smoothly and achieves its target and goals. It plays an important role to every
business in order to make sure all of the business marketing is properly arranged.

Marketing also can be define as process of planning and executing the

conception, pricing, promotion and distribution ideas, goods, and services to create
exchanges that satisfy individual and organization objectivities. The concept of marketing
is toward satisfying customer needs and wants as well as contributing towards profit for
the business.
The existence of Spa is because of some reason. We select this business because:

27
 i. We interested in this type of business because we have highly knowledge in
this field.
ii. To fulfill the needs and wants of consumer.
iii. We could see that this business has potential to make high profits.
iv. To get a monopoly in this business because there are lack of bumiputera’s
entrepreneur in this field

3.2 TARGET MARKET

Basically targets market refers to a group of customers or buyer with similar traits that
the organization wants to attract through their product offering. It is important to our
company that we identify our targets markets to offer our products to actual or potential
customers in the markets to generate our sales. Other than that, by identifying our target
markets, we can know whether our products are enough to compete with other
competitor.

The Spa S is situated at the centre of Bandar Perda, specifically at the Bukit
Mertajam. Our customer can easily get to our location because it is near with the
housing area either the estate area or industrial area around Pulau Pinang. We have
chosen Bandar Perda based on its potential of developing, and also have a lot of
education institution which give benefits to our company therefore it is suitable for our
primary targets markets whose is university students, colleagues, lecturers and not
forgotten for our secondary targets, the public.

We focus more on our customer based on the geographical and demographic

factor. We know that Bandar Perda could help the growth of our company as it holds
potential customer especially university students. There is a lot of public transportation

28
that available in Bandar Perda, and make a stop opposite from our shop. It makes easier
for our targets markets to come to our Spa S.

Spa S targets market focused on:

Geographical Segmentation.
In our business plan, the geographical segmentation will be divided into two
groups.

Location: We had chosen Bandar Perda as our business location. A few

reasons to support our choice are such as it is one of the strategic placed between
Bukit Mertajam and Butterworth. Besides that, the place is nearly too educational
place.

Distance: Location between Spa ‘S’ and our supplier is not far and our
supplier is not far. So, we do not need to hire van driver to go and get the stocks
from the supplier. Our stock will continuously to make sure that the products are
always in stock.

Demographic Segmentation
It is another important element of segmentation for most marketers. It referred to
the process of dividing the market into different groups on the basis of
demographic variable such as age, sex, family, religion, race, nationality,
education, income and occupation.

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 Age : We concentrate on our target markets group, which age mostly
between 20 to 40 years old. This rage is the highest potential customers using and
will be buying our products.

3.3 MARKET SIZE

Markets size refers to the value of the whole potential purchase by a group of
targets including those proportion controlled by existing competitor in the same market.
Base on our research, we estimate that there are about 88,000 people living in Bandar
Perda. This amount includes the school and university students also working citizens.
Calculation of total market size per year is as follow:

University/college students 17,000

Working Citizens 28,000
Total markets size 45,000

Estimate resident in Bandar Perda

Estimate average price four products:

Income from markets size = Estimate resident X Estimate average
price of expenses per year
= 720 person X RM150 X 12month X4spa
= RM 5,184,000

Income from markets size = Income from market size per year

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 /12 per month
= RM 5,184,000/ 12
= RM 4,320,000

3.4 COMPETITORS

Competitors can be known as other business or company that offering the

package of treatment to the same target markets as ours. We had identified our
competitors to help us to analyze our capability in controlling the market.

Even though we believe and confidence with our company, we still have to
analyze the strength and weakness of our competitors. It is important to us to make sure
that we will always improve our company to compete with the existence competitor.

Company Strength Weaknesses

Teratak Spa -Store concept is quite -Worker not fluent in communicate in Malay &
attractive. English
-Price is quite cheap. -Not enough experience.
-Not comfortable.
-The shop is very small.
-Not strategic and hidden business location (dead
location).

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Mustika Ratu -Hold second highest market -Low promotion and depends on signboard.
share. -Have basic service only.
-Worker fluent in -Unfriendly workers.
communicate in Malay & -Operation hour are not properly managed.
English

Nouvelles -Been in the market for quite -Not interesting landscape.

a long time. -The real price is expensive.
-Have their regular
customers.
-Hold the largest markets
share.
-Price offered is quite high.

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3.5 MARKET SHARE

Market share is referring to the approximate market proportion (in percentage)

controlled by the business after considering the whole market size and the influence of
the competitor in the same target market. Our competitor already been establish earlier
than SPA ‘S’ and have their own strength, power and invincibility in the market. Each of
these competitors has control the markets share with the different amount.

Below is the markets share per year before SPA ‘S’ entry:

Company Percentage of market Value (RM) per year

Share (%)
Teratak Spa 15 777,600
Mustika Ratu 35 1,814,400
Nouvelles 50 2,592,000
Total (market size) 100 5,184,000

Below is the markets share per year after SPA ‘S’ entry:
Company Percentage of Value (RM) per (%) Lose of market
markets share year new share
(%)
Teratak Spa 11 570,240 4
Mustika Ratu 32 1,658,880 3
Nouvelles 47 2,436,480 3

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SPA ‘S’ 10 518,400 -
Total 100 5,184,000

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 PERCENTAGEOFMARKET SHAREAFTERSPA
'S' ENTRY
SPA 'S'
10%
TERATAK SPA
11%
NOUVELLES
47%

MUSTIKA RATU
32%

3.6 SALES FORECAST

Sales Forecast referring to the expected purchase from the identified and selected
targets markets. In order to prepare this sales forecast we had considered a few things
such as markets size, the competitor, customer awareness, market share and seasonal
factor.

Sales Forecast for SPA ‘S’

1st Year (2009)

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 Month Sales Collection
January 22,860
February 33,140
March 43,150
April 43,170
May 43,200
June 53,190
July 43,170
August 43,190
September 53,090
October 43,170
November 43,390
December 53,680
Year 1 Total Sales 518,400

Sales Forecast for SPA ‘S’

Second and Third Year

Year Increment Percentage Sales Collection

nd
2 year 5% RM 544,320
3rd year 10% RM 598,752

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3.7 MARKETING STRATEGY

Market strategy is the activities of selecting and describing one or more target
markets, developing and maintaining a marketing mix that will produce mutually
satisfying exchanges with targets market. The marketing strategy consists of four key
variables; also known as the marketing mix or the 4P of marketing.

The term marketing mix referring to a unique blend of product, distribution,

promotion and pricing strategies designed to produce mutually exchanges with a target
market. The SPA ‘S ‘is a spa that has potential to be a successful spa. It is also an
interesting business and has great potential to gain high profits.

The marketing unit plays an important role to plan wise strategies and ways to achieve
the company’s goal. Providing excellent product and services as well as to gain profits
can do it. To focus of marketing strategies is to enhance, introduce the products, and
determine the prices and also the place of the company for community. The SPA S is

37
still new in the market, the marketing unit plays important role to introduce and to attract
customer. The SPA ‘S‘has set the marketing strategy according to the marketing mix.

• Product
• Price
• Place
• Promotion

PRODUCT/SERVICE STRATEGY

In term of product, our business had come up with a few strategies to attract
customer. It is the combination of attribute like style of brand, quality, service and
protection. These could be anything that a business firm offers to customers for their
satisfaction or benefits. Therefore, to satisfy our customer’s needs and want, the SPA ‘S’
will be focusing more on the quality of each service.

• SPECIAL PACKAGES

Our Spa ‘S’ will offer special packages to and encourage customers to come
again to get our satisfy’s services with reasonable prices and worth.

• AFTER SALE SERVICE

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 Particular attention should also be given to after sale service .Today’s
customer demand choice, quality and a high-level of service .Good after sale
service will show to customers that we really appreciate our customers
whether satisfied with our services.

PRICING STRATEGY

Pricing strategy
The price of the products or service is the amount of money charged to the customer for
a particular purchase. As the only element in the marketing mix that generates revenue,
an entrepreneur must understand the important of pricing a product or service right.

Cost – based pricing

Cost – based pricing is the simplest and most commonly use pricing strategy. Cost –
based pricing is based on the total cost of the product or service plus a standard

Mark –up .The mark-up is the profit margin that is desired from the sale of the product.
The decision on the percentage mark-up is made base on the following factor;

• Average profit margin in the industry

39
 • The number and strength of competitors in the same area or in the same
industry

Price = Total Cost Per Unit + Profit Margin

Cost – based pricing is often used as a guide in pricing .The offering price to the
customer may be lower or higher. This is a result of other factors such as customer’s
willingness to pay for the product or service, pressure from competitors and the supply
and demand factor. This strategy is used in certain circumstances whereby;
• The business wishes to finish the stock of good
• The business is confident that sales of other product will cover the loss on
the sales of the particular product
• The business is utilizing this strategy to penetrate the market.

DISTRIBUTION STRATEGY

Distribution strategy is aimed at establishing a structure and controllable distribution

system to ensure the product offered reaches the target customer .A distribution channel
moves goods from procedures to consumer.

Since we a providing a service to our customer, we are using direct consumer channel to
our customer. This type of channel is called the direct marketing channel or channel one.
It has no intermediate parties and is totally consist of direct selling business, or more
accurately, direct service business.

40
PROMOTION STRATEGY
Advertisement
In order to introduce and promote our spa to our targeted customers or even everyone,
we decide to choose several mediums to let everyone knows about the existence of our
spa.

1) Printed media
We use to promote our service is in printed media such as newspaper like KOSMO. We
will print for 3 first months, once for a week. We confident through this promotion
method more efficient because most of peoples get any information from this source.
The cost is RM 2400.
FACIAL TREATMENT SAUNA TREATMENT
BODY TREATMENT MASSAGE TREATMENT
HAIR TREATMENT PEDICURE & MANICURE
TREATMENT

No 1, Lorong Perda Barat 1,

Bandar Perda,
14500, Bukit Mertajam,
Pulau Pinang.
41
www.spas.com.my
Phone: 04-3138697
Fax: 04-3138698
2) Internet
Internet is very important for each company to distribute and promote their
product/service to international market. All the customers can access and get
information from our website, www.spas.com.my. The total cost for promote our
spa through internet is RM 166 annually.

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3) Business card
Business card is more important element at now to get information of business. Our
business cards consist of all available details like name staffs, premise address and
telephone, fax number to ease customer contact us at any time. The cost for 1 card is
about RM 0.10. Therefore, we plan to do 250 pieces card at the beginning and it will
cost RM250.

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S HA Z A NA AS MA IZ Z AT I
B T S HATA
NO 1, Lorong perda barat 1,
Bandar perda,
14500, bukit mertajam,
Pulau pinang.

Ge n er a l Man a ge r Phone: 04-3138697

Of Fax: 04-3138698
E-mail: Zana_spas@yahoo.com.my
S pa ‘ s ’

NO 1, Lorong perda barat 1,

S IT I H AR I S H AH Bandar perda,
14500, bukit mertajam,
BT E AZMAN
Pulau pinang.

A D M I N I S T R A T I O N
1,
Phone: 04-3138697
M A N A G E R Fax: 04-3138698
O f E-mail: risha_spas@yahoo.com
S p a ‘ s ’

NO 1, Lorong perda barat 1,

Bandar perda,
14500, bukit mertajam,
Pulau pinang.
NU RU L S H AF I ZA
MOH D SH AHR UD I N

F I N A C I A L Phone: 04-3138697
M A N A G E R Fax: 04-3138698
O f E-mail:sha_spas@yahoo.com
S p a ‘ s ’

44
 NO 1, Lorong perda barat 1,
Bandar perda,
S IT I NU RU L FARAH 14500, bukit mertajam,
BT E ABD OL MAJ ID Pulau Pinang.

O P E R A T I O N Phone: 04-3138697
M A N A G E R Fax: 04-3138698
O f E-mail:sha_spas@yahoo.com
S p a ‘ s ’

NO 1, Lorong perda barat 1,

Bandar perda,
14500, bukit mertajam,
S A B RAT U N S ’ A D I A H Pulau Pinang.
Bte ZU L KAFL I
1,
M A R K E T I N G
M A N A G E R Phone: 04-3138697
O f Fax: 04-3138698
S p a ‘ s ’ E-mail: atorn_spas@yahoo.com

4) Banner

45
We put the banner in locations that easy to people see. Function of this banner is same
with business card and signboard. The banner will put up about two weeks before our
company open officially. We will hang our banner in front of our premise and at the
strategic place such as main road, public area like in shopping complexes. This banner
will make according to the current activities and festival season. We order banners to
same company who make our signboard with cost RM50.

FACIAL TREATMENT SAUNA TREATMENT

BODY TREATMENT MASSAGE TREATMENT
HAIR TREATMENT PEDICURE & MANICURE
TREATMENT

46
5) Signboard.
The objective of using signboard is to make sure our potential customer notice and
realized that we are existed. The signboard will include our company name and logo. We
have ordered signboard from advertising company and it has costs us RM3000.

No 1, Lorong Perda Barat 1,

Bandar Perda,
14500, Bukit Mertajam,
Pulau Pinang.
www.spas.com.my
Phone: 04-3138697 Fax: 04-3138698

47
6) Pamphlet
We will print our pamphlet around RM 0.80 for each 500 copies to be locating in our
spa to further information about our services and treatment provides. The total cost is for
RM 400.

48
7) Flyers
We will pass our flyers around 2000 pieces to people in area Perda as one of a method of
promotion to introduce our new SPA ‘S’ to people in area Perda. The cost for RM 8 for
each 1000 pieces. Therefore, we plan to do 2000 pieces card at the beginning and it will
cost RM16.The fee for distribute to resident around Perda is RM 40.The total cost for
flyers is RM 56.

49
3.8 MARKETING BUDGET
The SPA ‘S’ marketing budgets for us to promote the company are as below:

Particulars Property Monthly Other

Expenses Expenses Expenses
(RM) (RM) (RM)
Newspapers(KOSMO) 2400
Internet 166
Business Card 250
Banner 50
Signboard 3000
Pamphlet 400
Flyers 56
Utilities 150
TOTAL 3000 2550 922

OPERATION PLAN

50
4.0 INTRODUCTION

The SPA ‘S’ company is the form of partnership. This outlet is located at No1
Lorong Perda Barat 1, Banda Perda, 14500 Bukit Mertajam , Pulau Pinang.It will operate
on the 1st January 2010. Operation plan involves the production of a product or service
according to the quantity, quality, specification and time specified by the customer at the
lowest cost possible. Operational activities include business inputs, transformation
process and output.

Operation management can be defined as the process of marshalling resources to

produce output through the transformation process. The transformation process comprises
three main components, i.e. business input, transformation system and output.

Input refers to all resource to produce a particular output suggest manpower, raw
materials, machines, equipment, technology, and capital. Transforming system refers to
activities involved in transforming input into output. Output is an end product that results
from the transforming process.

SPA ‘S’ company is a new comer in this business. The operation department
must provided proper and effective plan to ensure our services meet the quality standard
and fulfill customers demand.

4.0.1 OBJECTIVES OF OPERATION PLAN

51
 Operation department is department where activities like planning control and
maximizes the utilization of all the sources provide. Level of the production/operation
work is efficient with the systematic planning in operation department. Its need every part
to give commitment in order to achieve objectives that have been determined.

Objective of SPA ‘S’ operation department are:

• To fulfill the customers demand.

• To produce the high quality of services.
• To achieve maximum profit.
• To avoid operational problem.
• To define individuals’ vision and mission.
• Motivate workers to achieve goals.
• To maintain level of operation services by follow the all procedure.

In order to meet the objective of the operation plan successfully, we have our own
strategies which are:

• Ensure our company has a good reputation in the market

• Keep business running smoothly and efficiently
• Ensure all employee understand about their responsibilities towards the company
• Ensure that customer satisfied with the product and services that we produce
• Overcome problem that may arise with immediate and efficient solution
• Keep good relationship with customer and suppliers
• Keep on improving the operation system
• Provide satisfaction quality of services to customer

4.0.2 OPERATION STRATEGIES

52
 1. Improve our efficiency and skills when deal with costumers especially
when providing the products and services
2. Improve the quality of our products and services so we can have a good
relationship with the customer
3. Provide services on the time and avoid any error in other to ensure our
products and services in good quality
4. Ensure that we are responsible to our products and services that can attract
the customers.
5. Check all order received from supplier on time whether it is enough or not.

4.1 LOCATION STRATEGIES

53
 Spa S Enterprise is located at Bandar Perda , Bukit Mertajam. We choose this
location because it is strategic locations since it is located in the centre of the Bukit
Mertajam town which is near to the residential area, industrial zone, shopping mall and
commercial centre.

4.2 OPERATION PROCESS

54
 INPUT

MATERIAL OF TREATMENT

OUTPUT

SERVICE TREATMENT

4.2.1 OPERATION HOURS

55
 DAY WORKING HOURS

SUNDAY 10.00am – 7.00pm

MONDAY 10.00am – 7.00pm

TEUSDAY 10.00am – 7.00pm

WEDNESDAY CLOSED

THURSDAY 10.00am – 7.00pm

FRIDAY 10.00am – 7.00pm

SATURDAY 10.00am – 7.00pm

4.3 PROCESS FLOWCHART

56
GENERAL PROCESS FLOW CHART

PROCESS FLOW CHART (SPECIFIC TREATMENT)

57
a) Facial Treatment

58
59
b) Manicure and Pedicure

60
c) Hair Styling, Hair Removal and Makeup

61
d) Full Body Treatment

62
63
FINAL PROCESS FLOW CHART

64
SYMBOL IN THE FLOW CHART PROCESS

SYMBOL ACTIVITY EXPLANATION

The operation activity happens when

OPERATION PROCESS customer come to discuss. Customer will
register first at the reception and then will
wait to take their maid or trainees.

Delay happens when preparing all the data

DELAY of applicants before distributing all the
maid and workers.

Table: Symbol in the flow chart Process

4.4 CAPACITY PLANNING

65
The capacity planning for our company it is to calculate people that using our service in
one month.

Per Day = sales forecast

day

= 43 200
26
=RM 1662

Per Hour = 1662

8hours
= RM 208

4.5 MATERIAL REQUIREMENT PLANNING

66
a) Facial Treatment

Item Quantity required Price per unit Total purchase

(bottle) (RM) (RM)
Cleansing Milk 1 9.50 9.50
Ac cream 1 19.00 19.00
Ac prone lotion 1 25.00 25.00
Collagen cream 1 20.00 20.00
Superb cleansing/ 1 12.00 12.00
scrub Gel/ AHA/BHA
Renewal cream 1 39.00 39.00
Gold moisturizer 1 29.00 29.00
Whitening essence 1 35.00 35.00
Total 188.50

b) Body Treatment

Item Quantity required Price per unit Total purchase

(bottle) (RM) (RM)

Milky bath 1 15.00 15.00

Body lotion refreshing 1 15.00 15.00
Body scrub:
• Arabica blend 1 19.90 19.90
• Refreshing 1
sugar scrub 19.90 19.90

• Lulur serai 1 19.90 19.90

wangi 14.00 14.00

• Armpit 1 19.90 19.90

1
• Body ginger
1 19.90 19.90
• Body scrub
Tamarind&

67
 cinnamon
Aroma 3 100.00 300.00
Total 443.50

c) Hair Treatment

Item Quantity required Price per unit Total purchase

(bottle) (RM) (RM)
Shampoo: 14.00 56.00
• Aloe vera 1
• Santan 1
kelapa 1

• Ginseng 1

• Limau purut

Cream bath 1 18.00 18.00

Aloe Vera hair 1 15.00 15.00
conditioner
Hair tonic 1 14.00 14.00
Total 103.00

d) Sauna Treatment

Item Quantity required Price per unit Total purchase

(bottle) (RM) (RM)
Herbal 2 25.00 50.00
Total 50.00

e) Pedicure & Manicure Treatment

68
 Item Quantity required Price per unit Total purchase
(RM) (RM)
Set treatment 1 100.00 100.00
Pedicure &
Manicure
Total RM 100.00

f) Massage Treatment

Item Quantity required Price per unit Total purchase

(RM) (RM)

Oil for massage 2 50.00 100.00

Tungku Crystal Set 2 50.00 100.00
Total RM 200.00

TOTAL COST MATERIAL (MONTHLY & ANNUALLY)

69
 Equipment Cost per Quantity Total cost
equipment per set (RM)
(RM)
Facial treatment 188.50 20 3,770.00
Body treatment 443.50 16 7,096.00
Hair treatment 103.00 20 2,060.00
Sauna treatment 50.00 8 400.00
Pedicure & manicure 100.00 4 400.00

Massage treatment 200.00 8 1,600.00

Total 985.00 15,326.00

4.6 LIST OF MACHINES AND EQUIPMENT

No Item Quantity Price per unit Total

70
 (RM) (RM)
1. Facial bed 4 150.00 600.00
2. Facial steam 1 199.00 199.00
machine
3. Facial leans 1 200.00 200.00
4. Facial galvanic 1 450.00 450.00
machine
5. Chair 4 70.00 280.00
6. Steam hair 2 200.00 400.00
machine
7. Hair dryer 2 100.00 200.00
machine
8. Hair stylish set 2 100.00 200.00
9. Trolley 5 30.00 180.00
10. Sauna set 2 400.00 800.00
11. Bath tab 2 200.00 200.00
12. Heater 1 30.00 30.00
13. Freezer 1 200.00 200.00
14. Mirror 1 100.00 100.00
15. Decoration tree 12 10.00 120.00
16. Sofa set 1 1000.00 1,000.00
Total 5,159.00

4.6.1 MANPOWER PLANNING

Organization Chart

71
 General
Manager

Shazana
Asmaizzati
Shata

Worker Worker
Worker Worker
Sabratun Shafiza CLERK
Siti Nurul Farah Siti Harishah
S’adiah Mohd
Abd Majid Azman
Zukafli Shahrudin

SCHEDULE OF TASKS AND RESPONSIBILITIES

Position Tasks And Responsibilities

72
 • Responsible for the overall and management the
company.
• Managing and ensuring the company’s business
activities are profitable and it resources efficiently
and effectively utilized in pursuit of business goals
and objectives.
General Manager • Directing to company’s of planning activities and
provides leadership and overall guidance.
• In orchestrating the company’s strategies and
direction, the core responsibilities will include
marketing and business agreement.
• Guiding and monitoring a workers
• Give customer guidance if the customers need help.
• Do treatment for customer
• Ensure the company service achieve the specific
level.
Worker • Ensure that all service that are provide meet the
customer’s need and wants.
• Give customer guidance if the customers need help.
• Do treatment for customer
• Set all appointment for customer before do the
treatment
Clerk • Ensure all the material that use for treatment always
available.
• Answer phone call
• Cashier

Incentives and Benefits for Workers Commitment

73
 The work force is the most importance asset of our organization because it is the
main factor to ensure the success of the business. Beside that, with attractive salary and
comfortable environment, our company also provides other incentive to satisfy our
employees need.

These are incentives:

Employee’s leave
- Medical leave
o Full salary paid for 10 days medical or case (only on condition) for
the employee and the entire company member. All medical fees
will be paid by the company on condition the workers refer do the
clinic that is in the list of the company medical panel.

- Annual leave
o 14 days will be given to all employees. This excludes public
holiday.

- Marriage leave
o This leave will be given up to 7 days (once in a life time)

Medical Treatment
- The payment for medical treatment will be liable of the organization if the
employee undergoes treatment or check-up at respective hospitals or
clinics that has been approved by our company.

Employee Salary

74
 - The employees also can have an increment of salary. The increment base
on the performance of the workers, company profit and company decision.
Beside that, it is also dependable on the criteria of the employees. The
criteria are:-
o Qualification
o Skills
o Quality of works
o Discipline
o Good commitment

Employee Provident Fund (EPF)

- This scheme is deducted from the employee’s salary at the rate of 12% per
month, which has been fixed by the government.

SOCSO
- This scheme is deducted from the employee’s 2% salary. In order to
ensure safety and security of the employees, our company organization
has agreed to give compensation to our employees in the case of the work
related accident. This compensation will be based on the rate, which has
been fixed by the government. The rate is according to the table issued by
SOCSO Department.

Bonus
- Our company will give annual bonus according to the profit gain.

Insurance
- Every worker will be covered under insurance scheme

LAYOUT PLAN OF OPERATION AREA

75
76
77
4.7 OPERATION OVERHEAD

The extra cost that we use for the operation:

Fixed Assets Monthly Other

Total
Description Expenses Expenses Expenses
(RM)
(RM) (RM) (RM)
Telephone
- 200.00 - 200.00

Water - 50.00 - 50.00

Electricity
- 800.00 - 800.00

Total - 850.00 - 850.00

4.8 OPERATION BUDGET

Fixed
Monthly Other
Assets Total
Description Expenses Expenses
Expenses (RM)
(RM) (RM)
(RM)
Machine & equipment 5,159.00 5,159.00
Raw material 15,326.00 15,326.00
Renovation 15,000.00 15,000.00
Overhead cost 850.00 850.00
Total 36,335.00

5.0 Financial Plan

5.0.1 Introduction

78
 The administration, marketing and operational is important in a business plan.

However without any proper financial planning the implementation of a business is net

worth it. From the data and information that included in the financial plan, it will help the

company to evaluate their ability in managing their financial in order to run the business.

Financial plan is the plan that shows the short term financial requirement in order

to start a new business. It also shows how the requirement can finance the business using

internal and external source. Beside that it can prove the reliable information about

changes ion net resource resulting fro profit directed activities.

Financial planning is the last thing to prepare in this project to complete the

business plan. It consists of total expenditure and budget to establish a good business. All

the expenditure is such as administration, marketing, and operation budget. Actually, the

basic objective of financial plan is to provide financial information which is important in

determining some economic decision. Financial information is not information which is

needed to be considered in making decision, but it is more important than that. We can

say that, every decision make will base on financial information.

5.0.2 Purpose of Financial Plan

• To analyze the project and financial plan

79
• To ensure the initial capital are adequate, ability and sufficient

• To identify the purpose and relevant source of fund

• To determine the amount of loan re-payment and depreciation of fund fixed asset

• To appraise availability before actual investment is committed

• To evaluate how far or potential return on investment

• To make a party such as a financial institution to be confidence with the financial

of the company in order to make a business loan

5.0.3 Strategies of Financial Plan

80
 • Makes sure that company have sufficient amount of cash in order to take trade

discount, to maintain credit rating and to meet unexpected cash needs

• Give advise and opinion to other department such as administration, marketing

and operation in order to reach the business purpose

• Make sure the increase in business profit at the good stage and better performing

• Make sure that cash was used efficient and effectively without wastage in

expenses

• Try to seek business opportunity in order to increase the financial strength or

wealth of economy

5.0.4 Administration, Operation and Marketing Budget

81
 5.0.4.1 Administration Budget

For administrative budget, overall budget is RM 55,659. This budget is only for our

office not includes marketing or operation.

5.0.4.2 Operation Budget

82
For operation budget, overall budget is RM 35,485. This budget is on operation in our

company. For operation, we did not hire any worker. Raw materials, machinery and

equipment are used for treatment on our customers.

5.0.4.3 Marketing Budget

83
For marketing budget, overall budget is RM 6186. This marketing budget is use to

promote our spa and what services are include in our spa.

5.1 Project Implementation Cost and Sources of Finance

84
5.3 Depreciation Schedules

85
86
87
5.4 Loan and Hire Purchase Ammortisation Schedules

88
5.6 Cash Flow Performance

89
90
 TOTAL YR
10 11 12 YEAR 2 YEAR 3
1

99,632
0
43,170 43,390 53,680 518,400 544,320 598,752

43,170 43,390 53,680 618,032 544,320 598,752

16,999 16,999 16,999 203,988 203,988 203,988

950 950 950 11,400 11,400 11,400
100 100 100 1,200 1,200 1,200
2,800 2,800 2,800 33,600 33,600 33,600

150 150 150 1,800 1,800 1,800

56 56 56 672 672 672
400 400 400 4,800 4,800 4,800
2,400 2,400 2,400 28,800 28,800 28,800

17,800 17,800 19,400 206,952 217,299 239,029

1,316 1,316 1,316

4,600
800

52,749

0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0
41,655 41,655 43,255 552,677 504,875 526,605
1,515 1,735 10,425 65,355 39,445 72,147
51,680 53,195 54,930 65,355 104,800
53,195 54,930 65,355 65,355 104,800 176,947

91
5.7 Pro-Forma Income Statement

SPA 'S'
PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3

Sales 518,400 544,320 598,752
Less: Cost of Sales
Opening stock
Purchases 206,952 217,299 239,029
less: Ending Stock
Carriage Inward & Duty

Gross Profit

Less: Enpenditure
Administrative Expenditure 250,188 250,188 250,188
Marketing Expenditure 36,072 36,072 36,072
Other Expenditure 1,316 1,316 1,316
Business Registration &
800
Licences
Insurance & Road Tax for
Motor Vehicle
Other Pre-Operations
Expenditure
Interest on Hire-Purchase
Interest on Loan 0 0 0
Depreciation of Fixed Assets 10,550 10,550 10,550
Operations Expenditure
Total Expenditure 505,878 515,425 537,155
Net Profit Before Tax 12,522 28,895 61,597
Tax 0 0 0
Net Profit After Tax 12,522 28,895 61,597
Accumulated Net Profit 12,522 41,417 103,015

92
5.8 Pro-Forma Balance Sheet

SPA 'S'
PRO-FORMA BALANCE SHEET

Year 1 Year 2 Year 3

ASSETS

Fixed Assets (Book Value)

Land & Building
Furnitures 18,728 14,046 9,364
Renovation 4,800 3,600 2,400

Signboard 2,400 1,800 1,200

Cash Register Machine 144 108 72

Machinery & Equipment 4,127 3,095 2,064

Renovation 12,000 9,000 6,000

42,199 31,649 21,100

Current Assets
Stock of Raw Materials 0 0 0
Stock of Finished Goods 0 0 0
Accounts Receivable
Cash Balance 65,355 104,800 176,947
65,355 104,800 176,947
Other Assets
Deposit 4,600 4,600 4,600

TOTAL ASSETS 112,155 141,050 202,647

Owners' Equity
Capital 99,632 99,632 99,632
Accumulated Profit 12,522 41,417 103,015
112,154 141,049 202,647
Long Term Liabilities
Loan Balance 0 0 0
Hire-Purchase Balance
0 0 0
Current Liabilities
Accounts Payable

TOTAL EQUITY &

112,155 141,050 202,647
LIABILITIES

5.9 Financial Performance

93
 SPA 'S'
FINANCIAL PERFORMANCE
Year 1 Year 2 Year 3
PROFITABILITY
Sales 518,400 544,320 598,752
Gross Profit
Profit Before Tax 12,522 28,895 61,597
Profit After Tax 12,522 28,895 61,597
Accumulated Profit 12,522 41,417 103,015

LIQUIDITY
Total Cash Inflow 618,032 544,320 598,752
Total Cash Outflow 552,677 504,875 526,605
Surplus (Deficit) 65,355 39,445 72,147
Accumulated Cash 65,355 104,800 176,947

SAFETY
Owners' Equity 112,154 141,049 202,647
Fixed Assets 42,199 31,649 21,100
Current Assets 65,355 104,800 176,947
Long Term Liabilities 0 0 0
Current Liabilities 0 0 0

FINANCIAL RATIOS
Profitability
Return on Sales 2% 5% 10%
Return on Equity 11% 20% 30%
Return on Investment 11% 20% 30%
Liquidity
Current Ratio #DIV/0! #DIV/0! #DIV/0!
Quick Ratio (Acid Test) #DIV/0! #DIV/0! #DIV/0!

Safety
Debt to Equity Ratio 0.0 0.0 0.0

BREAK-EVEN ANALYSIS
Break-Even Point (Sales) 495,367 494,034 494,034
Break-Even Point (%) 96% 91% 83%

5.10 Graph Financial Performance

94
CONCLUSION

95
 Now in globalization period, everyone are busy with their own carrier and more
focus with work and money only. It is because money is everything in our life. In this
case many women and girl are not enough time to spent time for their beauty. So, with
opening our new spa, all women which placed nearly at Bandar Perda are no need to be
worry about their beauty because they can have a treatment in our spa. Beauty is very
important to women like our motto, ‘Health and Beauty’. Many treatment packages is
provided in our spa, so customer no need to worry because their beauty and health will be
fine.

Spa is one of business are provided service treatment beauty and health business.
With our skill, experience and studies background, we can handle and will success in this
business. We hope one day our spa will be success and have some branches in Malaysia
and to be the most successfully spa in Malaysia.

96