PBP60133 :CORPORATE LAW

PBP60133 :CORPORATE LAW

1.0 INTRODUCTION
1.1 BACKGROUND
Based interest in the food business driven by customer demand of friends, Ole-Ole Ummy
(O2U) were established in 2009. Business started early at home with an initial capital of
RM5,000.00 and aided only an assistant. With the increase in demand as a sub-supplier,
Ole-Ole Ummy (O2U) in early 2010 had rent a shop in the business district of Seremban
Forest Heights area to develop appropriate business operations
Involvement Ole-Ole Ummy (O2U) as small and medium entrepreneurs in the field of diet
industry is also based on the opportunity and potential to grow in the future, particularly in
the provision of halal food get encouragement and support from the government.
Market in Seremban seen to have potential for production of such products and the demand
for the market area around and also outside Seremban.
1.2 THE COMPANY
Ole-Ole Ummy (O2U) Company are managed by Ms. Musalmi as a sole-proprietor. The
company is assisted by four (4) manager to manage the Operational Department,
Production Department, Marketing and Account Department.
The Company employs 10 workers involved in the operation of the companys. It involves
permanent employees in the preparation of raw materials, manufacture of cakes and
biscuits up to the driver for the transport of the finished product.
1.3 BUSINESS ACTIVITIES AND PRODUCT
The principal activity of the business is the manufacture, supply and distribution of frozen
foods, modern and traditional cookies, cakes and pastries.

1.4 MISION AND VISION

Vision Ole-Ole Ummy (O2U) is to jointly compete in the local market and expand into
overseas markets in the halal food industry. Ole-Ole Ummy (O2U) native food producers
want to be a versatile in line with the government to Bumiputera SMI Entrepreneurs to
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PBP60133 :CORPORATE LAW

diversify their products. Ole-Ole Ummy (O2U) intends to introduce the role of business in
food can drain 1Malaysia to the outside world and at the same time introduce Malaysians
to halal food without worries.

PBP60133 :CORPORATE LAW

2.0 BACKGROUND OF COMPANY

2.1 DETAIL OF COMPANY
i)

Name of Company

: OLE-OLE UMMY ENTERPRISE (O2U)

ii)

Business Status

: Sole-proprietor

iii)

No. Business Registration

: NS0062656-P

iv)

Registration Date

: November 4, 2009

v)

Operating Date

: October 7, 2009

vi)

Registration Address

: 410, Lorong Desa Ixora 2/5,

Taman Desa Ixora 2, 70450
Seremban, Negeri Sembilan

vii)

Business Address

: Ole-Ole Ummy Enterprise

No. 15-G, Jalan Forest Heights 8
Seremban Forest Heights
Seremban 70450 NSDK

vii)

No. Phone

: (606) 679-3155

viii)

Original Capital

: RM5,000.00

ix)

Additional Capital

: RM80,000.00

PBP60133 :CORPORATE LAW

3.0 ORGANIZATIONAL STRUCTURE

O2U organizational structure designed covers all aspects of the management of an entity
such as here :

3.1 MANAGEMENT STRATEGY AND STAFFING

O2U has arranged several management strategies as follows:
The management will continue to discuss with the employee and the work done to monitor
each and every employee is able to perform its duties and obligations provided in the
respective.
The Company provides coordination and specialization for each task so that the
organization is able to run smoothly and can produce more efficient and work
systematically.

O2U have skilled and semi-skilled workers consisting of 100% native. Youth-skilled young
women's skills qualified local public institutions. O2U trustworthy local young people are
able to produce quality work with the guidance and ongoing training.

PBP60133 :CORPORATE LAW

The Company has four managers who have a qualification in the field of business and
management. It aims to help both partners for the development of the company. The
company also has 10 skilled and semi-skilled workers in the manufacturing of products
manufactured by the company. It involves permanent employees in the preparation of raw
materials, manufacture of cakes and biscuits up to the driver for the transport of the
finished product.

4.0 PLANS PRODUCTION

Production process up to the consumer are as follows:

PBP60133 :CORPORATE LAW

5.0 LOCATION BUSINESS

5.1

Business premises O2U is in the Business and Commerce Forest Heights

Seremban. Seremban is strategically positioned in the fastest growing area in

5.2

this time.
Infrastructure facilities such as electricity / water, communication facilities /

5.3

transportation is ready available that generate development in this area.

Surrounded by residential gardens and hypermarket stores selling like GIANT,
CARREFOUR, ECONSAVE, FAMILY STORE, and TESCO promote business

5.4

opportunities here.
Location of business premises is strategic for (O2U) operation of various

5.5

aspects.
Travel easy route to Kuala Lumpur and Putrajaya (45 minutes), to the Kuala
Lumpur International Airport (30 minutes), to the Sea Port of Port Klang and

5.6

Westport (1 hour).
Being in the population who can afford to buy the effective medium according

5.7

to assessable housing estates modern and medium-class luxury.

In the range of sites that trade industrial zones support a variety of business
services such as large stores of raw materials and semi-process requirements,
packaging materials, and advertising.

6.0 PREMISES
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6.1 Sample signboard premises

Sample signboard premises.

6.2 Detail premise

Address of the premise

Types of premise
Status
Rental period
Rental Rates
Floor Area
Store
Operating room
Premises Renovation
Electric deposit
Water deposits

6.3

Table 1 : Detail about Premise

No 15-G Jln Forest Heights 8,
Seremban Forest Heights ,
70450 Seremban
Shop House 1 floor
Permanent
1 Years +1 Years
RM10,000.00/month
1,582 sqf
100 sqf
1150 sqf
RM40,000.00
RM800.00
RM300.00

LAYOUT PLAN PREMISES

Example of Layout plan

PBP60133 :CORPORATE LAW

6.4 OPERATION BUSINESS

Business is open daily from 9.00 am to 9.00 pm

7.0 EQUIPMENT AND MACHINERY

Table 2 : Example Equipment And Machinery
Name of machinery / equipment / fixed assets
Work Desk / S worktable 1 tier undershelf 5 ft
Work desk S / S worktable 1 tier undershelf 7 ft
Work Desk S/S worktable 2 tiers undershelf 44 ins
Sinks S / S double bowl sink 5 ft
Grinders Hot Plate c / w S / S of stand & LPG
Safe-Chilled Snow Chest the Freezer 510L c / w 2
glass were flats panel
Safe-cool Mistral Freezer 295L c / w hard top
Rack goods S / S solid rack 4 tiers 5 ft
Cooling 2 doors display chiller
Safe-Chilled Butterfly Freezer 150L c / w hard top

No of Units
3 unit
I unit
1 unit
1 unit
1 unit
1 unit

Kitchen S / S Kwali range OF 2 c / w cast iron ring

Box Pamir SUCCESSFUL Confectionary Showcases
4 ft round
Electric Oven
Oven Gas 2 deck 4 trays
Rack iron rat proof s / s rack4 tiers 4ft
Rack dryers S / S Drying Rack 4 tiers 5 ft

1 unit
1 unit

1 unit
1 unit
1 unit
1 unit

1 unit
1 unit
2 unit
1 unit

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Rack goods S / S 4 tiers 5 ft

Rack Exhibitions S / S the Display Shelfs 5 tiers 5 ft
Rack Exhibitions 5tier 3 ft
Desk banquet 4 ft
Machine mixers Mixer 30L
Machine mixers Mixer 10L
Machine mixers Mixer 7L
Machine Heater Induction hotplates
The Developer Tools proofer single door delivery 15
pcs
Device Monitor Insects Insect Killer
Blender
Equipment kitchen and mold
Hood kitchen Kitchen Hood S / S
Machine hanker Dough sheeter
The Developer Tools proofer Double door delivery 15
pcs
Safe-Chilled the Vertical the Freezer 700L Double
Doors
Machine Semi auto Sealer
Machine Sealer Leg-Pedals
Rak oven trays

3 unit
2 unit
1 unit
1 unit
1 unit
1 unit
1 unit
1 unit
1 unit
1 unit
1 unit
1 lot
1 unit
1 unit
1 unit
1 unit
1 unit
1 Unit
1 unit

8.0 PRODUCT AND QUALITY CONTROL PLANS

8.1

Original Product
The principal activity of the business is the manufacture, supply and distribution of
frozen foods, modern and traditional cookies, cakes and pastries. The Company
manufactures 77 types of products are divided into:
Frozen: 22 types
Cake: 25 types
Bun pastry and bread: 10 types
Biscuits: 20 types
Operation O2U get support from SIRIM in packaging technology and brand
development Nun'S. The sample Trademark :

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Plan and shop process flow chart to consider the future dreams and HACCP/GMP
certification in order to increase competitiveness efforts to tap into a larger market
from where it could be undertaken by O2U.

In addition to undertaking the preparation of food, O2U opportunities pastry making

courses, cake and pastries according to current demand. This also includes social
outreach opportunities to students from institutions taking space for practical skills
from time to time.

Doing business making bread, cakes, biscuits and frozen food O2U halal food
products that have been recognized to comply with regulations such as Halal
according to Islamic law issued by the Jabatan Hal Ehwal Agama Islam Negeri.
In 2015, the company has planned its business by producing new product biscuits. It
assisted with new packaging and design that can penetrate overseas markets and
hypermarkets.

8.2

New Product And New Design Support

O2U Company has developed a method to introduce the latest promotions for
products packing biscuits with the cooperation and assistance of government
agencies. Through this new packaging, the company expected to gain sales and
promotions can be enhanced in the future.
The Company's new product 'choc chip' and 'Nutty Roche'. 'Choc Chip' like products
'Chip more'. While 'Nutty Roche' like products 'Chocolate Ferrero Roche'. Both
products are packaged in packs of small and affordable prices.

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Sample New Design packaging to new product :

At this time, the demand for the company's new product release 'choc chip' in 3 flavours,
chocolate, cappuccino and vanila are very encouraging. Daily production is 5,000 pieces.
But after taking into consideration the increase in machinery and equipment, expected the
company can produce 3 times the daily output of 15,000 pieces.

10.0 SUPPLY OF MATERIAL/SUPPLIER

O2U always ensure supply of raw materials from suppliers who have taken the halal
certificate. Among the major suppliers are as follows:
1.
2.
3.
4.

Ishak Yahaya at Paroi Jaya, Ampangan, Seremban

Muhibah Frozen at Seremban Jaya, Seremban
BAGUS Supermarket at Bandar Kajang, Selangor
Gaint Hypermarket to raw material (floor,sugar,egg ext)

11.0 COMPETITION
In Seremban competitors are as follows :
1. Secret Recipe - cakes sell a variety of products and other fast food.
2. Cake shop in supermarkets - ECONSAVE, GIANT, JUSCO.
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3. Cake shop owned by Bumiputera and non-Bumiputera in Senawang and

Seremban.
4. Individuals who conduct business at home.
12.0 MARKET SEGMENTATION
1. As acknowledged, there have been several operators in the area of food suppliers
within a radius of 20 km from O2U transactions. O2U concern is diversification of
products and types of products such as frozen foods, modern and traditional cakes,
pastry, and biscuits and cakes that taste priority 'homemade recipes'.
2. Food industry is still so small in this region and in the country. Rival dealer
insignificant in view of their production is still limited because of certain things
like logistics, brand identity and local demand. Instead, the operators working in
the supply if a provider does not accept bookings tramping him. O2U example is to
be sub-supplier to some of the products for sale by other operators for their regular
customers.
3. During this time period, O2U effort is to strengthen the business by widening the
supply network in the Klang Valley through the promotion of 'samples', the print
and cyber media advertising and brand recognition through better packaging. This
is a golden opportunity for many other competitors are still lagging behind in this
field.

13.0 MARKETING STRATEGY

13.1 PRODUCT STRATEGY
1. Halal food market is on average now wide open and encourage that where the
government seeks to make the country a parent center for halal food production.
This opportunity to convince O2U involved in transactions with more order to
the operations of an existing store. Estimated potential market of RM1.7 trillion
halal food around the world and in the country RM17 billion.
2. The main target marketing O2U is in the Klang Valley which ranges with strong
purchasing power and ever growing. Further economic growth in the Klang
Valley stimulate an increase in population and thus generating increased demand
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PBP60133 :CORPORATE LAW

for food. Food consumer trends to immediately 'convenient food' reported

increased due to busy work factors and modest income growth, adding
purchasing power (annual estimate of 2008 more than 60% of Malaysia's upper
middle income class).
3. Against this backdrop O2U business strategy that can be implemented in a way
that is preparedness. Accept orders according to ability and capacity that can be
maintained so that the quality sustainable products 'homemade recipes'.
4. Provide new attractive packages and affordable prices for all services offered in
accordance with established business goals and are able to provide effective
competition to its competitors.
13.2 PRICE

1. Pricing is based on the products and services offered are affordable and
competitive. According to the current market rate movements practiced by
competitors. O2U based on the concept of flavors preferred customers and
repeat purchases from satisfied customers.
2. Offer price discounts during the promotion period and also the festival.
3. Company O2U always discuss and exchange ideas with staff about customer
preferences and to make the good price to regular customer.
4. Company pelan give membership card to regular customer.
5. Price per item, to the public and private offices, businesses and factories.
13.3 PLACE
1. Products based O2U is "homemade recipe" which customers can distinguish it
feels. O2U product marketing is through the promotion clients 'customer
requests' while delivering supplies to sales outlets such as supermarkets and
kiosks in 'food courts' or ancillary provider sites / scale housewives 'home-based
outlets' in neighborhoods.

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2. Specifically target O2U is a middle class and above, the careers and the
importance of quality and distinctive taste. Purchasing power is high in urban
and metropolitan areas in the Klang Valley.
3. Delivery method using a company vehicle. Additionally, durable packaging
products used for delivery to customers outside Seremban. The company also
continues to practice the method of delivery to the customer who makes the
booking in large quantities directly to the home or place customer orders.
13.4 PROMOTION
Promotion is very important and there are indeed implemented by the company and are
still in the pipeline to market products to increase sales. Between strategy promotions by
O2U his products :
1. Provide ongoing campaign to ensure that the premises are always accessible at
all times.
2. Distributing pamphlets, brochures, banner, flyers, leaflets to notify the
existence of the premises to the public and into stores businesses, factories,
government departments, schools, business firms.
3. Running continuously roadshow offices to attract the attention of the services
offered.
4. Attractive and affordable prices to attract customers and provide effective
competition to its competitors.
5. Hiring ECONSAVE site on Saturday and Sunday being the day of sale could
indirectly promote the company's products.
6. Working with several companies as an agent marketer to help companies
expand the area south of the particular market in Negeri Sembilan, Johor and
Malacca.
7. Mini open caf. As there are 3 floors of 1 lot was hired by an insurance
company of MAA Insurance which houses over 100 employees, the company
sees a need and a demand to open the mini-cafe. Tiny cafe will offer the sale of
all products O2U cooked to the customer and according to plan, a mini caf will
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be located next divided premises. Tiny cafe will also serve as one of the
company's product promotion agency.
8. Build cold room for storage products. With the addition of product orders from
existing customers and new customers, freezing cold room construction / coldroom is need to meet the needs of stock.
9. Maintain a good relationship with customers meet their tastes by affordable
rates and to ensure that stocks are sufficient to meet customer needs.
10. Creating a quality service and all problems faced by customers dealt with
wisely. Receive complaints and customer insights to improve the quality of
services.
11. Advertise the product to ICTs medium. For example FACEBOOK, TWITTER,
BLOG.
12. Promote the product to big exhibition. For Example : HALAL EXHIBITION,
EKSPO or any program from government or private.
13. O2U currently have begun to engage with the following government agencies
such as MITI, MATRADE, MARA, MARDI and related exhibitions organized.
It also gives the company the opportunity to introduce the product to the outside
of Seremban. The company also has begun to see the potential for marketing
products abroad through a partnership of government agencies.

14.0 THE TARGET MARKET

Business target area is located at Seremban government offices, private firms, business
buildings, schools, higher education institutions either employees or students. We are fully
confident of capturing the market as we already have regular clients in Kuala Lumpur and
other state.
i) Individual (walk in customer when company join to expo or exhibition/ coming
in the shop)
ii) Private agency
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PBP60133 :CORPORATE LAW

iii) The government sector

iv) The hypermarket or shopping complex on buying this product on large quantity.
15.0 MARKET SIZE
The assumption that the Seremban and Seremban has 5,000 housing units and the
government offices with a population of 10,000, including staff working in government
offices. Only 1% per month that comes in the shop with a budget to spend RM 100 per
month. Then for example :
10,000 people x 1% = 100 people a month
100 people x RM 100 per month = RM 10,000 per month.
(Assuming customer walk-in only')
16.0 FINANCIAL
O2U began commercial operation of its business premises in December 2011. Below its
their Statement of Comprehensive Income and Statement for Financial Position for 2014
and its projected for 2015;

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17.0 SWOT ANALYSIS

STRENGTH

THREAT

1. Diversity of the type of frozen

1. Not have a permanent site is

food products, confectionery and

owned, exposed to every time the

side

rent increases that threaten the

dishes,

pastries,

breads,

cookies and cakes with Halal

fixed cost of production

certification.
2. Based Transparent Business Model
with

internal

expertise

to

2. Medium-size business that always

threatened to squeeze the big

management and manufacturing to

producers

continue

maintain market grip especially

developing

future

development.

who

compete

to

during the times of users spending

reductions.

WEAKNESS

OPPORTUNITY

1. Faced with the 'Financial Stretched

1. Start a 'smart partnership' with

fund' that began with private

branded

suppliers

market

to

investment capital and require

enhance production and expand

substantial working capital for

markets

marketing
2. High turnover of workers due to

2. Started

getting

attention

from

their personal affairs, threaten the

several quarters to give credit

stable

higher

purchase of raw materials and

production costs due to the time

product orders for large and long-

required each time training new

lasting supply of test that can be

recruits.

'anchor' in O2U business in the

production

and

near future.

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18.0 SUMMARY ACTION PLAN COMPANY

TABLE 5 : EXECUTIVE SUMMARY THREE-YEAR PLAN ACTION PLAN
2014-2017
Title
Marketing
Cooperation

Follow-up
Product
supply
option
to
any
supplier
and
wholesaler,
the
festive season
The increase in Equipment
manufacturing
modifications
to
increase
production,
preparation, frozen
safe, increase the
number
of
employees (Target
16) and Provision
of shelter workers
Search
new Proposal
to
premises
upgrade
manufacturing
GMP & HACCP
certification

Action
Increase
promotion

Expected Impact
Estimated
sales
supply
RM500,000.00

Get grants / loans.

70,000
product
manufacturing
biscuit and cake.

Search and Apply

for factory site in
Negeri Sembilan
within 30 km
radius
from
Seremban. Seek
assistance
and
cooperation from
any party and
government
agencies to rising
standards proposal
Concentration
Add sales activities Goal 5 times a
increased
direct directly
to month starting in
sales to customers consumers through January 2015
for
daily
our daily rental sites in
liquidity
selected places

19.0 FINANCING REQUIREMENTS

21

Starting Jan 2015

and the expected
revenue
in
8
months

Estimates
promotional
RM
3000
month

sale
per

PBP60133 :CORPORATE LAW

19.1 Funds Required and Timing

Referring to the company's financial performance and the increasing demand from
customers, the company O2U requires additional funds amounting to RM200, 000.00 for
additional capital and the purchase of machinery / equipment, which can increase
production.
In addition, the need for new packaging cost and it requires additional machinery for
packaging. Existing workforce is expected to be added to further enhance the company's
production.
The following breakdown of the proposed loan needed for business development:

ITEM
Working capital
Purchase of
equipment

machinery

RM
RM50,000.00
RM60,000.00

RM70,000.00
Purchase of machinery for
packaging
Marketing/ Promotion
Total

RM20,000.00
RM200,000.00

Example Table 6: Machinery to buy.

Name of machinery / equipment / fixed assets
Steamer Machine S / S steamer 10 pcs
Fridge Freezer 510L c / w 2 hard top doors
Cooling 2 doors display chiller
Rack goods S / S solid rack 4 tiers 5 ft
Machine Dough Divider & Rounder Semi Auto
Dough Divider Machine
Packaging machine

Quantiti
1 unit
2 unit
1 unit
1 unit
1 unit
1 unit
1 unit

Cost (RM)
RM 2,800.00
RM 4,000.00
RM 2,450.00
RM 900.00
RM 17,500
RM 5,000.00
RM70,000.00

Period of time to get all the machines before December 2014. Additional equipment
proposed is to increase productivity and decrease the total cost of processing operations.

19.2 Repayment Terms

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PBP60133 :CORPORATE LAW

The Company expects to obtain financing of RM200,000.00 to meet specified

requirements. Proposed repayment period based on sales analysis is as follows:
i)

Example Funding period: 8 years

ii)

Profit rate: 4%

iii)

Monthly Installment: RM 2,315.96

iv)

Breathing time: 3 month

20. 0 SUMMARY
Based on the planning and revenue projections that were presented, the company is very
confident that the business company is able to provide profitable returns. Projections made
for the first year of operation after getting very optimistic financing company viable and
able to grow in the future. This is based on a strategic position.
Accordingly, through the business plan submitted, the company hopes to get funding from
the government or private agencies to expand its business globally.

Reference
1. http://www.bplans.com/bakery_business_plan/market_analysis_summary_fc.php
2. Entrepreneur Profil Company

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DESCRIPTION OF ITEM SHOP AND EQUIPMENT

HEAT

DRY ZON

WEAT

PREPARATION

PREPARATION

WET ZONE

DESCRIPTION OF ITEM SHOP AND EQUIPMENT

COLD ROOM

HEAT

SHOPE

SHOPE SPACE

STORAGE

SHOPE

FOOD PRODUCT LIST OF HALAL CERTIFICATION

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2
3
4
5
6
7
8
9
10
11
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19
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A. FROZEN FOOD
Putri Ayu
Apam Mekar
Pai Mini ayam, daging & sardine
Karipap pusing ayam, daging, sardine &
sayuran
Mini murtabak ayam & daging
Pau goreng inti kacang merah & sambal
ikan bilis
Pulut udang
Cucur badak
Popia sardine & sayur
Kuih Lopis
Vadae
Kuih rengas (kacang hijau)
Kuih koci pulut hitam & pandan
Risole ayam, daging & sayuran
Pulut dakap pisang
Mini popia udang
Chocolate Brownie
Rendang daging
Rendang ayam kampong
Puyuh berempah
Rendang itik
Ayam berempah

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B. KEK
Kek dam
Kek Red Velvet
Chocolate Mud Cake
Chocolate Chip Cake
Moist chocolate cake
Soft Chocolate Cake
Butter cake
Butter Marble cake
Kek Lobak Merah (Carrot Cake)
Soft Cotton Cheese Cake
Opera Cake
Pandan Layer Cake
Caramel Layer Cake
Ice Cream Cake
Kek buah kukus & bakar
Kek Sponge Gula Hangus
Tiramisu Cake
Swiss Roll
Kek Lapis Batik Sarawak
Kek Lapis Prune
Kek Lapis Asam Manis
Kek Lapis Asam Manis
Chocolate Brownie Cheese Cake
Chocolate, vanilla, orange, lemon,
strawberry, marble cupcake
Muffin chocolate chip, blueberry, strawberry
cheese & chocolate filling

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55
56
57
58
59
60
61
62
63
64
65
66

C. COOKIES
Pesona Cookie
Snow Almond
Sweet Strawberry
Strawberry Snow Heart
Millinium Nut
Chocolate Chip
Crystal ball
Cornflake Delite
Chocolate Milk Finger
Milky Cocoa Finger
Biskut Dahlia
Samprit 2 Rasa
Crunchcy Oat Chocolate
Butter Cheese Cookie
Butter Cookies
Tart Nenas
Tart Blueberry Gulung
Pinky Lagoon
Strawberry Almond

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77

D. PASTRY, BUN & BREAD

Blueberry Cheese Tart
Bun Sosej Bakar & Goreng
Mini pizza ayam
Cream Puf
Donut
Puf
Roti bergulung kek
Pai manis
Bun Manis
Roti Gulung

AGENCIES AND SPONSORSHIP / SUPPORT FOR A COMPANY O2U