7.

0 Design and Development Plan (Product/Service)

Smart wardrobe main material is Melamine Wood which is a high quality, durable and
reliable material which is a hard resin. It is commonly used as an overlay for building
materials like MDF or plywood. In its most basic form, melamine is an organic
compound that when combined with formaldehyde forms a durable thermosetting plastic.
This 'plastic' is then added to a paper base to form the laminate that covers a variety of
materials and household objects.

What is the benifit of purchasing a melamine materials product?

 Durable - scratch & shatter resistant, waterproof
 Inexpensive - covers inexpensive substrates like MDF or plywood
 Choice - can be produced in a wide variety of colors & finishes
Beside melamine wood, we have 4 feature which able to make our product more
outstanding which is our perfume spray, air circulation system, foldable hanger and
clothes tray organizer.

7.1 Development Status and Tasks

The graph above shows the business life cycle of L.A.M.B Enterprise
Development is the first stage L.A.M.B Enterprise have to face. Our company innovated
the new product that from traditional wardrobe by adding feturs that able to solve our
daily problem to become a smart wardrobe for convenience to consumers and open the
new market. We need to do the market research to ensure that smart wardrobe gain high
value in the business market.

L.A.M.B Enterprise is in start-up stage of the business, where it has just begin to build up
its customer base. As many believe, this is the riskiest stage where our task should be not
doing any massive mistakes. Moreover, mistakes made at this stage would impact the
company progress and this is why most start-up company doesn’t last even for five years.
The capital is contributed among four partnership equally. Therefore, frequent
observation for cash flow needed to be done to ensure the capital are properly used for
business purpose only.
L.A.M.B Enterprise plan to hop in next stage which is the growth. Growth is the third
stage in the business plan. We hoping that our company growth will be stronger and more
stable. In this stage our business will be consistently producing revenue and increasing
more number of customers. Currently our business could be operating at a net loss or
maintaining healthy profit, but there could be some competition. This is also when we
need to fine tune our business mode and implement proven methodologies, sales model,
marketing model, and operations model before expending venture for the mass market.

Next plan for future are to expand L.A.M.B Enterprise to other countries such as Brunei,
Vietnam, Indonesia and Thailand. We are hoping that this plan will be successful in future
if there is a chance we might expand it in Singapore too. However doing business in
foreign country requires us to follow their local government policies which could be a
huge challenging procedure without having any partnership from the stated country so to
make things easier we have planned to look up for partnership in the country we planned
to do business.

In future we are also planned to make more flexibility for customer such as color, design
and choices of compartment and size of the wardrobe. Consumer could customize their
wardrobe to fits their own requirement.

7.2 Challenges and Risks

Being new in the market, L.A.M.B Enterprise had yet to achieve a stable position in the
furniture industry. Brands name of Furniture such as Ikea, Lorenzo and KC Home have
been in the market for a long time and they are our toughest competitors. They have been
in the market with a long time popularity and vast scale business including experience.
Competitive risk are high because they have been dominated the market for so long time.

The risk faced by L.A.M.B Enterprise would be that we are unable to have a strong

customer base as we are new to the market. Customers may hesitate to try our newly

innovated Smart Wardrobe which is different from the normal Wardrobe that have already

been in the market at other countries. Due to this reason we should carry our marketing

strategies broadly and accurately to target the right customers. We will ensure that the

people get to know that our aim is to produce affordable and good quality product and

instead of buying other brands which is costly and serve the same or less function than

our product. The right and effective marketing strategy will slowly increase the number

of customers and attract more people to give a demo of our Smart Wardrobe.

Besides that, our product may not be attractive because we are only producing it in

Standard color design. The compartment is also standardize as a result, this might not

attract the customers’ attraction towards our product. However in the future we would add

on more design and customize the compartment including with some good looking

designs on it. We believe that with this idea we would gain more customers in the future

7.3 Projected Development Costs

Start-up Expenses  
Monthly Costs:  
Salaries of owners RM 12,000.00
Salaries and wages of workers RM 11,550.00
EPF & SOSCO RM 3,532.50
Utilities RM 1,000.00
Advertisement costs RM 166.67
Telephone and Internet RM 333.33
Website maintenance RM 83.33
Equipment maintenance RM 100.00
Total Monthly Costs RM 28,715.83
   
One-Time Costs:  
Building RM 200,000.00
Equipments RM 10,000.00
Apply for Trademark RM 3,000.00
Vehicles RM 50,000.00
Stationeries RM 200.00
Others RM 2,000.00
License fee RM 60.00
Patent RM 300.00
Total One-Time Costs RM 265,560.00
   
Total Capital RM 350,000.00
Total Start-up Expenses RM (294,275.83)

7.4 Proprietary Issues (Patents, Trademarks, Copyrights, Licenses, Brand Names)

L.A.M.B Enterprise is registered partnership company for brand names under
Suruhanjaya Syarikat Malaysia (SSM). Our company also got register trademark
according to the government law by paid RM3000 for 5 years. Smart Wardrobe
has its patent registered under class 11 which covers apparatus for lighting,
heating, steam generating, cooking, refrigerating, drying, ventilating, water supply
and sanitary purposes. The patent has been registered online through the
website of www.myipo.gov.my in order to protect the design and avoid it being
copied by other people or company. Once we registered no individuals is allowed
to copyrights and use any idea produced by L.A.M.B Enterprise as the idea
protected by the government.
L.A.M.B Enterprise have to be registered its patent to protect the design and idea
because it is very easy to copy by others especially other air purifier companies.
Therefore, we have the exclusive right to produce our personal air purifier. The
exclusive right granted to a patentee in most countries is the right to prevent
others, or at least to try to prevent others from commercially making, using,
selling, importing or distributing a patented invention without the rightful owner’s
permission.