Year 2011

Business Plan Proposal

GROUP MEMBER (Gang 17)
 
MOHD. NORIZAM MD. SALLEH
IC NO: 670703-01-6045
STUDENT ID:CGS00534317
 
REIDZUAN BIN AHMAD
IC NO: 691218-04-5275
STUDENT ID: CGS00541817
 
MUHAMMED FUSEINI INUSAH
PASPORT NO: D 0002277
STUDENT ID: CGSGH00001917
1  
KAMALUL BAHARI ABDUL JALAL
IC NO: 830213-06-5485
STUDENT ID: CGS00534017
CONTENT

1. PROPOSAL TITLE/GROUP
2. BACKGROUND

3. OBJECTIVE

4. OUR FINDING

5. SALES & PROFIT COMPARISON

6. COMPARISON GRAPHS

7. THE TECHNOLOGY

8. INVESTMENT REQUIRED
2 9. RECOMMENDATION

10. REASONS
 Proposal Title

To Participate in “High Speed Broad Band to

Homes” Project

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Background

Company current conventional market growth are almost

stagnant.

Therefore this paper is to present the Proposal Business Plan

for 2011 to the top management after carrying out a study in
determining a new market/technology to explore for company
future expansion, growth and survival.

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Objectives
To secure mandate and approval from top
management on the followings;

1) To participate in the “High Speed Broad Band to

Homes” projects.

2) To investment in Micro Trenching Technology.

 Buying micro trenching machines
 Setup teams to carry out job using this technology.
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Our Findings

“High Speed Broad Band to Homes” is booming at the

moment.

With most of the “Telcos” are participating, the market is

growing so fast that the demands are currently greater than
the supply.
RM 15 Billion is to be spent by “Telcos” to build up the
infrastructure and the entire system in the next 10 to 15
years.
Currently the contractors are insufficient and this is an
excellent opportunity for us to gain the market share and a
defensible position in the industry.

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 Sales & Profit Comparison Between the
Past & Forecast – With HSBB to Homes

Past Three Years Sales

  2008 2009 2010

  (RM) (RM) (RM)
Sales 3,500,000 3,675,000 3,858,750
Total Cost 3,025,595 3,274,150 3,545,090
Net Profit (Before Tax) 474,404.8 400,850.3 313,659.6

Next Three Years Sales Forecast

  2011 2012 2013
  (RM) (RM) (RM)
Sales 12,100,000 13,310,000 14,640,000
Total Cost 10,065,198 11,054,898 12,143,286
Net Profit (Before Tax) 2,034,801.6 2,255,101.8 2,496,714.1 7
 Comparison Graphs Between the Past &
Forecast – With HSBB to Homes

Past Performance
•Existing sales increasing
•But the profit started to decline

New Market
•Sales increasing
•Profit also increasing
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The Technology
Comparison

Micro Trenching
Technique Conventional Open Cut
Method

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 Finish - Comparison

Conventional Open Cut

Method - Finish

Micro Trenching -
10 Finish
 Micro Trenching Typical
Works

Typical Micro
Trenching Works

Install Micro Duct

Inside the Micro
11 Trench
 Investment Required
 Aprox. RM 2.5 Million cash to cover first three
month overhead/project cost RM 2 Mil. from
company and aprox. RM 500k from invoice
financing or revolving working capitol.

 Proposed new machineries/vehicles RM 478K

for 2011 and subsequent RM 119K each year
for 2012 and 2013.

12  Additional manpower cost of RM 1,536 Mil.

each years for 2011-13.
Recommendation

 To participate in “High Speed Broad Band to Homes”.

 Invest in the new technology (micro trenching)

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 Reasons;

 Increase sales by 245% in the first year and subsequently

10% each years.
 Increase profit by ~612% on the first year and about 11%
on subsequent years.
 Due to the shortfall on the capable contractor we
anticipate this business is going to be our “Stars”
referring to “BCG Growth – Share Matrix”.
 Have very big growth potential if we are willing to
invest more.

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