Nature of business venture

1.1 Business overview

Lofa’s House Sdn Bhd offers bakery product and services for customers, providing a variety
of cakes, muffins and breads that gives high satisfaction to the consumer.

The majority of our clients come from middle and low income families who opt for
affordable price. We also have our special delivery services to cater to our customers who
are busy. Lofa’s does not compensate on the quality and we will always ensure our products
are of high quality, nutritional and halal.

Across Kelantan and Kota Bharu particularly, the food industry has seen rapid growth over
the years especially with regard to the bakery products and services. Kota Bharu is the
capital city of Kelantan and the demand for the bakery product during festive seasons,
wedding etc is growing in tandem. The surrounding competitions are normal and we are
confident with the uniqueness of our product.

Our strategy is to emphasize on the quality and price of our product. We believed that our
product is competitive and it is in accordance with purchasing power of the people. Also, we
have developed a unique marketing strategy to attract customers to buy our product.
Vision

Our vision is to make Lofa’s House Sdn Bhd the first choice of people when it comes to
bakery products and services. We also want to create a benchmark in Quality Standard in
this industry by using latest equipment and technology and continuously encourage
innovation in our production

Mission

Our mission is to ensure the highest quality of bakery products and services to our
customers. We will always be seeking to improve all aspects of our business for sustainable
growth and profitability and in order to meet the demand of the industry and for long-term
success.
1.2 Product Description

Our company, Lofa’s House Sdn Bhd will build a café called ILofaYou which will be
showcasing our products especially our cakes.

Our cakes are divided into three categories based primarily on ingredients and mixing
techniques.

Lofa Happy Chocolate Fudge

It is a variation that incudes pudding fudge cake, made with chocolate cake mix, chocolate
pudding and chocolate chips. When made with additional chocolate, the recipe is
sometimes known as “mort par le chocolate” means “ Death by Chocolate”. It is similar to a
brownie but it is moister with more chocolate in it.

Lofa American Cappucino

It is a cake made with Cappucino as a main flavor. Cappucino is a sponge flavored with
Capuccino. They are generally round in shape. It is also layered with Americano coffee
flavored butter icing. Walnuts are the common addition to the cappuccino cake

DivaLofa Kapadokya Strawberry Cake

It is prepared with strawberry in the batter, with strawberries or a strawberry filling in

between the layers of the cake and in the combination thereof. It is prepared in two types;
first iswith strawberries incorporated into frosting and secondly is by using strawberry-
flavors gelatin as ingredient.
2.1 Analysis of the external and internal environment

Analyzing the external and internal environment are the main factors that lead to the overall
success of our business. After much discussion, we have analyzed all the factors involved
and we have segmented them. The following factors are

• Geographical factor

• Demographical factor

• Psychographical factor

The analysis has helped us in identifying our market which greatly helps in deciding our
target market, and for the growth of our business in a long run. The understanding of these
factors gave us a better insight regarding our business,

Demographic

Demographic factor is an external factor that deals directly with the variables such as age,
gender, income, occupations, and health conditions. Our company is located at the town
where the people or customers came from different background or lifestyle. It helps us to
identify the trend that might shape future spending patterns in the target market. There are
a few characteristics of population that has been identified as our target market. They have
different background of education, income, social class and occupation. This is because the
Kota Bharu is considered as a big town. The people are from all level of incomes

Psychographic

Psychographic factor is known as one of the internal factors. It is done by taken into
consideration the lifestyle of consumers. Activities, interests, and opinions (AIO) surveys are
one tool for measuring lifestyle. It considers a number of potential influences on buying
behavior, including the attitudes, expectations and activities of consumers. From our
research, we identified that our target market is people that come from all level of incomes
from both genders. As we know, we are competing with other companies and shops in
producing our owned bakery products. So, our services are different from others. These
differences can attract customers to come to our company, besides the fact that our
product is a very new and unique product. Due to this reason, we have decided to use only
the best qualities of raw materials. Plus, we also provide the best services at reasonable
prices. All these are important to ensure that our customers are satisfied with our services.

Behavioural
Behavioral factor is an internal factor that capitalizes the unique relationship you have with
your customers to have a very personal conversation. It has allowed us to take a closer look
on those who want to hold any type of events such as wedding or occasional events like Hari
Raya and Chinese New Year. The demand for demand during these occasional events
normally will increase. During weekend or school holidays, there are many wedding events
being held and these have given us more opportunities to sell our products.
2.2 Company Internal Structure

The company internal structure is the most important thing when open up a business. It is to
ensure the business run smoothly. The performance, growth and survival of the business
depend on skills, capabilities and experience of all the staff hired. They should know and
familiar with the process such as planning, controlling, organizing, and leading the company.
It is also to bring the organization to a whole new level that not care about the profit but to
be more inclusive and mutual such as setting up the employee’s salaries, protect the
employees welfare compensation and fringe benefits, recruiting, provide the furniture and
fitting in the office to ensure the employee comfortable with the working environment..

In Lofa’s House Sdn Bhd we see our company internal structure function as a vital task
where it compresses all the elements to make sure the effectiveness in terms of performing
organization activities. Wi will always make sure the all things are implemented according to
the business plan through planning, organizing, leading and controlling. From that, our
business will run effective and efficient because we have a schedule to do the task, duties
and responsibilities.

Zooming in, the next page showed the position set up to maneuvers the company inside and
out. It is also included the job description
 POSITION JOB DESCRIPTION

 To form the objectives, planning

strategies and monitor the
organization policies and also as
mastermind in an organization.
 To plan and monitor the strategic
progress of the business
GENERAL MANAGER  To maintain good communications
skill and relationship with
government, private sector, customer
and also financial institution.
 Ensure all activities to run smoothly
using the proper procedure.
 Able to cooperate and interact with
people.
 To carry out interview for workers
and to evaluate the workers
performance.
ADMINISTRATION MANAGER  Ensure that all the business objective
will be achieve.
 To plan administration system and
ensure it become efficient and
effective.
 Help the general manager manage
and plan systematic management.
 To identify the marketing target,
current market and determine the
strategy which is suitable to be used.
 To prepare marketing analysis and
MARKETING MANAGER observe the strategic location to
expand the business.
 Doing consistent promotions ensure
the sales reach the objectives.
 To find out the steps and effort
needed to be done systematically to
smoothly increase in the sales.
 Arrange the set of services and education
that will be offer.
To ensure the flow stock runs smoothly
OPERATION MANAGER
without having any shortage in the supply
stock.
To ensure the quality of product.
Plan out the program that will be done

Prepared cash flow, trading profit and loss

account and
also the balance sheet for the company.
To manage all financial management.
FINANCIAL MANAGER To handle the administration, operations
and marketing expenses in order for the
business to be financially stable.
Responsible to the entire activities that
involves the company finance.

LABOUR WORKER Loading and unloading stocks.

Packaging products.

CASHIER Manage daily sales transactions.

Manage and arrange stock at premise.

DRIVER
To deliver the product to the customer by
company’s vehicle.
3.1 Unique Selling Points(USP)

Branding

The categories of cakes produces are based on the colour, flavour and fillings inside. We
have flavours than ranging from chocolates to strawberries. We package our products by
using high quality plastic (Low Density Polyethylene), plastic container with lids and
disposable food container. It is to make sure the quality of the products are in good
condition and easy to use. It also able to protect the product during the process of
transportation, storage, display and sales until the product is ready for use. Moreover, we
also want to create instant recognition of the product.

Customer Value Proposition

In our business, we are introducing new product which has never been produced before and
that is the cake with the authentic selected flavours. Statistically showed that the cake is
one of the Malaysian favourite dishes, and we only take the advantage of that by
innovatively introducing different rare type of cakes with different fillings for the cakes. Also
colour according to flavour with additional chocolate chips in the bahulu. Most Malaysian
love trying new food or cakes, and our cakes is definitely worth trying. Once tried, people
will definitely have the urge to try other flavours provided as each and every flavours that
we offered, has its own unique taste. In addition, our product also is the new modification
as the usual cakes is only with original flavour
3.2 COMPETITION

Basically, competitors often defined as other firms or independent entities that offer
similar services or goods in the marketplace. Knowing the competitors and what they are
offering is very significant in setting up a new business. It will trigger us enhance our
products, services and marketing. Other than that, it will allow us to set our prices
competitively and help us to respond to rival marketing campaigns with our own initiatives
and efforts. Currently there are a lot of bahulu shops existed in the surrounding marketplace
which means a lot of rivals existed. In business, a company in the same industry or a similar
industry which offers a similar product or service is assumed to be the competitor. As an
entrepreneur, competition is positive way for our company to improve the business that will
help us to stay on focus of our business. We can also identify the strengths and weaknesses
of our services. The presence of one or more competitors can reduce the prices of goods
and services as the companies attempt to gain a larger market share as it tries to attract
more customers. Competition also requires companies to become more efficient in order to
reduce costs and other expenditures. The competition analysis is important because it helps
us to understand more on the competition and thus help us to prepare a blueprint for a
strategic business plan.

Based on our research, we knew that every competitor has their own strengths and
weaknesses. So, we have engraved more in order to move a step ahead in order to compete
with both new entrants to our market and current competitors. Therefore, we will create
marketing strategies that take advantages of our competitors' weaknesses, and improve our
own business performance. Assessing the threats posed by the competitors is important in
order to manage our business successfully. Below are the lists of our current potential
competitors.
COMPETITOR’S SWOT ANALYSIS
Al-Hikmatul Food Enterprise
STRENGTH
Opened for 24 hours
Stable financial background
Comfortable cafe
Had open 6 years ago until now
OPPORTUNITIES
Growing dining out market
Growing fast food market
A new emerging and development
market
New potential in Malaysia market
Classico Bahulu Sdn Bhd
STRENGTH
Opened everyday
Have membership card
Have polite workers
Have cheaper price
Had open 2 years ago until now
OPPORTUNITIES
Competition weaknesses
New healthier menu item
Local Urban Community
Marketing Initiative
Government backing
WEAKNESS
Very unreasonable price
Do not have up to date equipment
Do not have special treatment
Do not have variation of flavor
THREATS
More health conscious customer
Threat from local competitors in same
area
Global economic recession
Playing in mature and saturated
industry
WEAKNESS
The shop is not well manageable
Less quality of product
Not strategic location
Lack of quality and services
THREATS
Changing consumer eating habits
Price wars
Exposing to rises in the cost of
cassava and dairy products.
Taxation
COMPANY’S SWOT ANALYSIS

STRENGTH WEAKNESS
Have many variety of flavor of snack Do not opened 24 hours
Have a special service from workers Do not have membership card
Supply for occasional event Undifferentiated of products and
Provide a comfort facilities to customer services
High quality of unique product Market position
Provide delivery Weak brands

OPPORTUNITY THREATS
Increase in online ordering market Market entry of many competitors and
Changing customer tastes copycat brands
Change in population age-structure Seasonal demand
Low levels of suppliers loyalty
New competition in the
market,possibly with new products
and or services
4.1 MARKETING STRATEGY

A business marketing strategy is the single biggest factor which determines the
success or failure of once business. Marketing strategy is a business's marketing policy,
usually outlined in a formal marketing plan. The marketing strategy usually meshes with the
company's corporate image and product brands. Marketing tactics are some of the activities
that carry out the marketing strategy. Each promotion tool has unique characteristics and
costs. Marketing strategies are generally concerned with marketing mix principles, also
known as the 2 Ps. It is used by business to assist in pursuing the business‟s objectives.

The 4 Ps in marketing strategy are:

i. Product strategy
ii. Price strategy
iii. Place or distribution strategy
iv. Promotion strategy

1. Product/Services Strategy

Brand

Our product named “Lofa Happy Chocolate Fudge” which may refer to an informal
manufacture which offering traditional cake in modern way and made-to-order food. Just by
recognize our brand, obviously people may know what we are going to serve for them when
they come to our manufacture. In addition, our brand motto „ Experienced colourful
feelings here‟ is an attraction because it will make people wondering what the difference
between our cake and other cakes in market. Otherwise, we also supply our product to
occasional event, party, wedding ceremony and some certain supermarket when have a
demand.

Quality

Quality of a product can be a major positioning tool for a business. We can convince
our customer due to our quality of product by maintaining the taste. For example, the taste
of the “Lofa Happy Chocolate Fudge” and the regular one will keep maintain and sustain
whenever customer want. Nowadays we know that some supplier could be bias by cheating
the customer on the quality of the ingredients being used. By using low quality ingredients
which is cheaper than high quality ingredients and sell the product with unreasonable price
in order just to gain more profit but forgot the quality of product. So our company has held
a loyalty to customer by not cheating them and takes any advantages by using high quality
ingredients at reasonable price. Other than that, for supplying we used effectiveness
alternative by using machine to produce our product instead of hiring some employee. From
that, our customer’s demand cannot be delay and punctually be on time.

Design

Product design or service package plays an important role in satisfying and delighting the
target market. Our product can be classify as a food businesses and more related to service
to the customer. In fact, we also supply our products to demander especially for occasional
event on Hari Raya, wedding ceremony and party. Our company have been trained to
respect customer and set in mind that customer is always right. So we handle all the order
with care to keep it from damage because we are supplying cakes which is in soft texture.
Other than that, we also provide packaging cakes for wedding ceremony which is usually
make as a gift to the guest when there has any request. This can be called as a one package
instead of us supplies the cakes

Packaging Protection

The primary function of packaging is to protect the product during the process of
transportation, storage, display and sales until the product is ready for use. Since our
products is going to be supply to certain supermarket, occasional events, wedding ceremony
and party, protection is one of the important thing to handle our product. So we choose
transparent plastics as our packager. In addition, it is easiest way for the customer to see
and satisfy when they wanted to buy our products.

Product differentiation

As we know in market, each product has their own identities and specialties to attract
customers. Include of their packaging and tasting. Same goes with our product. Since our
product is bahulu, we know that all customers from other races in Malaysia can eat and
accept our products because it is a typical cake but what we concerned is the quality of our
products. Good packaging has the power to create instant recognition of the product. For
the packaging, we have our own sticker that contain our company details such as address,
contact number, e-mail, logo and halal certificate.

Attractive to customer

The packaging of the product may be the sellers‟ final chance to influence
customers. The main packaging we used a high quality plastic (Low Density Polyethylene). It
is to make sure the quality of the products are in good condition and can be stored for a
long period of time and can prevent bahulu from get eaten by insects. We also used plastic
container with lids and disposable food container to maintain the quality of bahulu. Besides,
for the request from customer for gifts or special occasions, we used colorful and variety
design of paper bags or goodie bags for the packaging. This is our strategy to attract
customers‟ attention.

Labelling

Labelling performs several functions such as identifying, grading, describing or even

promoting the product. Label is one of the important thing that consumer have to take
attention. Eventually, our product is classified as a food, so we must put the expiring date as
guidance to consumer from eating a damage food that would be a food poisoning to
consumer. In addition, we also put all the ingredients and content label at the package to
ensure customers about the healthiest of our product which not be made from artificial
ingredients. It is safe for the children to eat our products. The more important thing is the
„halal‟ logo that certificate from JAKIM which is can convince the consumer especially
Muslim to purchase our products. This is to ensure all the ingredients that we are used is
from food standardization and not made from non-halal ingredients that could be make
sensitivity of Muslim consumer.

After sale services

Since our products is cake, the market sale is consistent because its food and usually
ate by all customer from any races and ages. Our cakes can serve as alternative food for tea
time, supper and especially for people that do not have enough time for breakfast. This
shows that our product is useful during urgent time and they need on-the-spot breakfast.
Based on our market sale, usually demand is higher when it comes to occasional day such as
“Hari Raya”. For Muslim who is busy they often make a last minute preparation. So, they
only buy instant food such as cake. Therefore, we provide many types to make varieties for
customers.

2. Price strategy

The definite meaning of the price of a product or service is the amount of money charged to
the customer for a particular purchase. Our financial objectives when talking about price will
be coined on how much money we intend to make from a product, how much we can sell,
and what market share will get in relation to competitors. Objectives such as these and how
a business generates profit in comparison to the cost of production need to be taken into
account when selecting the right pricing strategy. There are several pricing strategies,
namely, cost based pricing, value based pricing, and competition based pricing. Each one of
these has their own pros and cons based on the product or service offered itself. For our
company, we have decided to imply the cost based pricing strategy.

Cost-based Pricing

Cost based pricing is the simplest and most commonly used pricing strategy. Cost-based
pricing is based on the total cost of the product or service plus a standard mark-up. This
involves setting a price by adding a fixed amount or percentage to the cost of making or
buying the product. In some ways this is quite an old-fashioned and somewhat discredited
pricing strategy, but like being stated above, it is still widely used. This is also one the factor
why we chose this pricing strategy for our product, the most simplest but reliable and
popular used even by big companies worldwide.

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 based on certain factors. Firstly, we have to know the
average profit margin in the industry for our product. For example, for our product which is
a food product, the margin for food business is not less than 35% of the selling price.
Secondly, we have to take into account the number and strength of competitors in the same
area or same industry. For example, for our company, since we are competing with only two
other competitors, even our company is a new company or the newcomer in the area, we
may not have to reduce our price. Thus, how high should the mark-up of our product
percentage be. That largely depends on the normal competitive practice in a market and
also whether the resulting price is acceptable to customers. An example of cost-based
pricing, where a business wishes to ensure that it makes an additional profit on top of the
unit cost of production is illustrated below:

Unit cost RM100

Mark-up 50%

Selling price RM150

Cost-based pricing is often used as a guide in pricing. The offering price is vice versa, may be
lower or higher. This is also the result of other factors such as customers willingness to pay
for the product or service, pressures other competitors, and the supply and demand factor.
However the lowest price of our product is determined by the unit cost of the product. We
have taken into consideration if the price lowers than the cost per unit will result in a loss
for our company. We also chose this pricing strategy to utilize this strategy intelligently to
penetrate the market. Besides that, we also confident that sales of our products can cover
loss on the sales of the particular product. Other factors that can contribute to the pricing
include economic conditions, government regulations, social concerns, and consumer
groups.

The main advantage of cost-based pricing is that selling prices are relatively easy to
calculate. If the mark-up percentage is applied consistently across product ranges, then the
business can also predict more reliably what the overall profit margin will be. Some other
advantages of the cost based pricing are in term of flexibility whereby we can add a different
percentage to different product lines. Besides, if the costs of our product go up, it is easy to
adjust the prices thus reducing the loss in a long run plus it is easy for our marketer to
defend the pricing and last but not least it can suit a manufacturer with scalable production
based on demand.

However, there are also disadvantages to this pricing strategy. Among the disadvantages are
it ignores product demand or the influence price may have on demand and also what other
competitors are doing with their pricing. Furthermore, the most obvious disadvantage of
this strategy is if the costs of our product increase, so must the price. The name of this
pricing strategy is self-explanatory where it is
based on the cost of the product itself. That is why the cost of our product is directly
proportional to the price of the product.

Another approach that we have taken into consideration is the pricing tactic as different
tactics can help us attract more customers and maximize our profits. First, discounting
offering specially-reduced prices can be a powerful tool. This could be a clearance discount
to sell old stock, a discount for making multiple purchases of the same or similar products,
or we could offer bulk discounts to encourage larger orders. We thought that this tactic will
enable us to make more profit through lower costs.

Secondly, the odd value pricing or the psychological pricing. Using the tactic of selling
products for RM 9.99 instead of RM10 can be useful if price is an essential part of customers
buying decisions. Some customers perceive odd value prices like this as being more
attractive.

Another tactic is the loss leader. This involves selling a product at a low or even loss-making
price. Although we may not make a profit selling this product, we could attract customers
who will also buy other, more profitable products.

Next, the penetration. This tactic starts at a low price and gaining market share before
competitors catch up. Once we have a loyal customer base, we should be able to find ways
to raise prices later. This tactic seems very convenient to our company as we are trying to
penetrate the market as a new company.

Lastly, the tactic of raising or lowering prices. We are well aware that there will be times
when we need to change our prices. There are two key questions we will try to answer. First,
what effect will the price change have on the volume of sales, and second, what will the
effect be on the profit per sale? When we Increase the prices, we can improve our
profitability even though our sales volume may drop. If we are increasing our prices, we will
always explain to our customers why we are doing it. We can use the price change as an
opportunity to re-emphasize the benefits we offer.

There are also ways that we can hide price increases. For example, we might introduce new,
higher-priced products or services and make older, cheaper ones obsolete lower the
specification and our costs while maintaining the same price but we will be aware that
hiding price increases can risk adverse reactions from our customers if they realize what we
are doing.

In contrast, the reducing prices, we know that we should never take the decision to lower
prices lightly. Low prices often go hand-in-hand with poor-quality service. This is not the
image we want to create for our business.

3. Distribution Strategy

For product-focused companies, establishing the most appropriate distribution strategies is

a major key to success, defined as maximizing sales and profits. Place represents the
location where a product can be purchased. It is often referred as the distribution channel. It
includes any physical store as well as virtual stores on the Internet. Distribution strategy is
aimed at establishing a structured and controllable distribution system to ensure the
smoothness of transferring the products to its target customers. As we are manufacturing
and selling our products on our own without any intermediaries, it can be considered that
our distribution channel is from manufactured to consumer after distributed to the
wholesalers and retailers. Our strategies are involved in many areas which are through the
wholesalers then being distributed to the retailers like grocery shops in one housing area
and finally being distributed directly to the customers.

1. Manufacturer
First, we sell and manufactured our products which are cakes directly to the consumer
which are the one who pays to consume the goods and services produced for satisfy their
needs and wants. When we directly sell to the consumer, there has no intermediary level
and there are not involved the retailers and the wholesalers. Even the consumers will having
their own choice and may choose all varieties in flavor besides, buying in large numbers of
item that we had provided. By dealing directly with consumers, manufacturers are able to
remain in business. We choose this type of distribution because we are providing fresh and
clean food every day to satisfy everyone’s needs and wants.

2. Selling through retailers

Apart from that, we had manufactured our cakes to the one intermediary level, the retailers
which are a business or person that sells goods to the consumer, as opposed to a wholesaler
or supplier, who normally sell their goods to another business so that we can achieve the
aim of expanding the coverage, increasing the exposure, capturing the market and boosting
the brand-name of its merchandise within a relatively short time. They act as an
intermediary link between the manufacturers and the consumers of goods. But, the
selection of the number and location of retailers depend on the coverage area intended by
our manufacturer
 3. Selling through wholesalers

Apart from that, we had prefer to sell our cakes to wholesalers as the middlemen who
operates between the producers (from whom they purchase goods) and the retailers (to
whom they sell goods) as well as referring to any individual or business firm selling goods in
relatively large quantities to retailers other than consumers. Besides, a wholesaler takes
charge of goods from a manufacturer, usually in very large amounts, and in turn sells them
to retail establishments at a marked up price. Even, through their scale of operation,
contacts, experiences and specialization, wholesalers offer manufacturers more than what
the manufacturers can achieve on their own. So, we had selling our products through the
wholesalers like the big super market such as Mydin, Tesco, Econsave and Jaya Jusco. In
case, they will help to reduce the amount of efforts required by the manufacturer in
distributing his product to the final consumers and provide vast market coverage to his
products. More importantly, by dealing with the wholesalers they have better financial
resources than manufactured directly to the consumers and dealing with retailers. Our
product will be well-known in our Malaysian food market with the help of wholesalers, help
in perform advertising and sales promotion activities and also employ expert sales
representatives for the purpose

4. Promotion Strategy

Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations, personal
selling and sales promotion. A certain amount of crossover occurs when promotion uses the
four principal elements together, which is common in film promotion.

1) Advertising

i. Newspapers/magazines

This is one of our promotion strategies in introducing our company. Newspaper is a part of
medium in transferring information to the residents in our marketplace. So, we will
advertise our product including our company‟s contact details. However, in order to
minimize the cost, we will choose the hot selling newspaper and magazines in the
residential area. It also will reduce the waste of advertising useless promotions.

ii. Lower Price and Discount

Besides that, our company will give the best price to our customer and give free extra
bahulu to our customers that buy more than certain quantities.
iii. Signboards and banners

Signboard is the way we introduce our company especially for our premises. It is because,
we will locate the signboard directly in front of our building so that when people pass by,
they will know where we are and what services and products we are producing.

We will design and locate our banners at the main locations where people always come or
pass by for example is, at junctions of the roads, terminal bus, universities or colleges, and
so on. The total of the banners is around five depends on how much place we will locate
them.

These two medium of advertising will not be a problem to our company especially for cost.
It is because, we are producing these products and we just need to pay for the raw materials
of producing them.

iv. Sticker

One of the ways to introduce our company and make our customers keep informed about
our products and services is by using sticker on every packaging. The information provided
includes:

a. Name of the company

b. Address of the company

c. Phone numbers - office and staffs

d. Company‟s logo

e. Company‟s e-mail

v. Website

Other alternative that we will use is the website that has information about our company
and products. In spite of that, we also will use social networking sites such as blog, facebook,
twitter, and so on. Online selling is important as it is the easiest way to buy something so
people can make orders by only access to the internet. In addition, people also easy to make
any choices of flavor or colour of our cakes because they can see the picture
4.2 OPERATIONAL STRATEGIES

In any business that we want to set up, an operation objective is important element that
should be add on in order to ensure that the business will be run smoothly and accordingly.
The successful of the business is depending on how the effective of the operation in the
business itself. The smoothly and a well condition of operation can lead the business
achieved the goal easily without face any difficulties that hinder the success of the business.
Therefore, the objective operation should be set up in order to serve as a guideline for the
business in achieving their goal.

The main objective for the Lofa’s House Sdn Bhd is to give a best quality of our product,
which are many different types and taste of cakes to our customer in order to make them
more satisfied with these products. We also try to fulfill our customer requirements and
needs. Also to change the perspectives of our customer about the cakes not just can be
served not only for Malays, but other races can try it too.

OPERATION OBJECTIVES

1. To make sure that all the operation activities will be run properly and effectively by
the workers who are responsible for it and able to achieved the business goal.

2. To ensure that all the products that provided to our customer follow the
requirements and needs in order to make them satisfy with our product.

3. To make sure that our product is nutritious, clean, Halal and always available to the
customer.

4. To make sure that the stocks is being managed properly.

5. To ensure all the workers can perform their job effectively.

6. To maximize the sustainable profit growth and minimize the lost.

7. To make our company grow faster in order to be more competitive in the business.

8. To be more creative and innovative in order to attract customers.

9. To be aware with new business opportunity that is based on our product

10. To make sure the performance of our business operation will be successful.
5.1 OPERATION DEPARTMENT STRATEGIES; JUSTIFICATION

As the world keep on changing and globalization in the Malaysian industry field, we Lofa’s
House Sdn Bhd are ready to take up the challenge. One of our strategies is through our
operation plan itself. Where this particular plan is vital as others plan that we has discussed
early. The operation plan itself discusses on how exactly the basic operation will occurs. In
the operation department, all the inputs are merging to produce are merging to produce the
output.

In simple word, we at Lofa’s House Sdn Bhd will efficiently combine the work force, stock
available, equipment and apparatus, technologies, information and capital to meet the
demand of our customers and the same time gain the profit that we had estimated. In order
to do so, we had made several strategies in making sure that the objectives of our operation
plan are well achieved.

The strategies are listed below:

• Lofa’s House Sdn Bhd will make sure that the staff that we hire fulfill the
requirement of the particular position. This merely due to avoid excessive staff in the
operation department.

• Lofa’s House Sdn Bhd will ensure that our stock is always for the customer

• Lofa’s House Sdn Bhd make sure that all the cakes that we bake are properly
concealed, clean and in good condition (extra precaution)

• Lofa’s House Sdn Bhd will take note on all the feedback that came from of our
customer. We believed that the critics that they give to us would improve the level
efficiency in the operation department.

• Lofa’s House Sdn Bhd will always find new initiatives and business plan that can
increase our opportunity for success.
5.2 Key Success Factor to ensure the success of planned strategies

1. Set clear priorities.

Establish only one priority at a time along with supporting initiatives. For example, a priority
might be penetrating a new territory. Supporting initiatives could be leasing an office, hiring
staff and initiating a marketing plan.

2. Collect and analyze data.

Entrepreneurs often specify measurable goals in their strategic plans. But once the planning
process is a wrap, the document might be set on a shelf and not revisited for quite a long
time.

A key to ensuring execution is staying on top of results. We will develop key performance
indicators (or KPIs) that can be measured and monitored on an ongoing basis. We also will
procure operating data related to these indicators and evaluate results on schedule (daily,
weekly, monthly or quarterly).

3. Keep a rhythm to meetings.

Without continuous communication, employees can lose touch with an entrepreneur’s goals
and objectives. Over time employees, and even the entrepreneur, can veer off course. This
leads to poor results, which can have a disastrous effect on an organization.

4. Evaluate the strategy.

The entrepreneur should also meet with the executive team and key management
personnel on a monthly or quarterly basis to evaluate the progress with the strategic plan.
These strategic meetings should be more in-depth and designed to determine if changes are
required.

The periodic strategic meetings should discuss strengths, weaknesses, opportunities and
threats (or SWOT). They can help executives determine if the strategy's soundness in light of
changes within the organization, industry and economy. The meetings should aim to exploit
strengths and opportunities while mitigating weaknesses and threats.