Business Plan for Recyclable Food Packaging Company

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BUSINESS PLAN ENT300
Fundamentals of Entrepreneurship (Universiti Teknologi MARA)
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EXECUTIVE SUMMARY
PORTA VIA is a company that focuses on food packaging in Malaysia. PORTA VIA is a
company that manufacture packaging that can be recycle and also implement the “Go
Green” theme to produce the packaging product. PORTA VIA of product paper packaging is
a first unique packaging that will be used in Malaysia.
Our main customer is fast-food chain such as McDonald’s, Kentucky Fried Chicken (KFC)
and Burger King because PORTA VIA supplies the packaging to be used as the fast-food
chain packaging and also PORTA VIA aims to improve the country’s environment as PORTA
VIA concern with the environment and Malaysia is slowly improve their packaging in order to
help the country’s environment.
The management of PORTA VIA consists of three (3) lead workers which is Nureen Afrina,
Kamaliyah and Dinie Shafini. Our workers hasve extensive and experience in finance,
operation and marketing as our workers is graduated under business studies so they studied
on how to start a business.

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1.1 INTRODUCTION
1.2 Name of The Business
Our company’s name is PORTA VIA which means take-away in Italian. We use
the name of ‘PORTA VIA’ because we find it unique and it is related to our
product which is food packaging. Moreover, the name itself is very rare in
Malaysia.
1.3 Nature of The Business
Our main activity is producing food packaging. PORTA VIA wants to become the
biggest supply of fast-food chain in Malaysia as we want to improve the current
food packaging. Our targeted customers are McDoanld’s, Kentucky Fried
Chicken (KFC), Burger King and many more.
1.4 Name of Partners
PORTA VIA is founded by three (3) person. The first partner is Nureen Afrina
Binti Fuad Zakri as General Manager, Kamaliyah Binti Ishak as Administration
Manager and Dinie Shafini Binti Muhamad Zaidi as Marketing Manager.
1.5 Location of Business
The premise is located at 5, Jalan Penyair U2/44 Glenmarie Industrial Park,

Shah Alam, Selangor. We choose this location because it is very strategized and
appropriate for our company to manufacture our products as the chosen location
in Shah Alam is very known as the location of factory and industrial.

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2.0 PURPOSE OF THE BUSINESS PLAN
Business plan is set of documents prepared by an organizations’ management to summarize

its marketing, operational and financial objectives for the near future. It provides step-by-step
guideline once we started the business. It also provides the ideas on how to achieve the
organization goals. This business plan is very important for organization like PORTA VIA
because it may help us to maintain our business longer in Malaysian market.
2.1 Prepare for the future
By outlining the organization goals and how to reach them, our business plan
helps us prepare for the future. Market research in the business plan should
include future strategies based on consumer needs and your ability to fulfil those
needs. Business plan also been developed to identify potential obstacles,
including possible changes in the market, so that the company will be prepared
to make operational decisions that remain in line with the overall business
strategy.
2.2 Prepare for the financial institutions
Business plan assist and help financial institutions to evaluate the capability and
financial strength of the company especially when applying for loans and to
convince the investors towards providing funds for the business. If the company
have a good business planning, they will be interested in investing in the
company. For the financial institutions, they will be more confident to lend the
money for business activities.
2.3 Prepare for the supplier
Business plan plays important role in allocating the resources throughout the
business so that the company can meet the objectives. Business plan help
convince the supplier of the viability of our business venture thus benefiting both
the supplier and our company in the long term business arrangement.

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3.0 BACKGROUND OF THE BUSINESS
Picture 3.0 – Company’s logo
Our company’s name is PORTA VIA means take-away in Italy. Our business of food
packaging was developed on 27th September 2018. PORTA VIA was built at 5, Jalan Penyair
U2/44 Glenmarie Industrial Park, 40150 Shah Alam, Selangor.
The business of food packaging was established by three partnership members consists of
three women that cooperated together. The idea of making this food packaging based on our
own experience and also online questionnaire that was made for publics because of
difficulties in carry the fast food at once.
We hope that our business of food packaging going well in the packaging industry as well as
food industry because we wish to collaborate with fast-food chain. Moreover, we also hope
that our business of food packaging can be known globally as we want to increase the
demand of our product and making our country as one manufacturer that produce quality
products. For all of our company staffs, we hope that they give their best in perform their
duties and the most important thing is we want each of our customers satisfy of using this
food packaging.

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4.0 PARTNERS BACKGROUND

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5.0 MARKETING PLAN
Marketing plan is a comprehensive document or blueprint that outlines the advertising and
marketing efforts for the coming year. It describes business activities involved in
accomplishing specific marketing objectives within a set time frame. A marketing plan also
includes a description of the product or service, a discussion of the target market and a
description of marketing mix that a business will use to achieve their goals.
A marketing plan has a formal structure but can be used as a formal and informal document
which makes it very flexible. Marketing plan start with the identification of customer needs
through a market research and how the business can satisfy these needs while generating
an acceptable return. This includes processes such as market situation analysis, action
programs, budget, sales forecast, strategies and projected financial statements. A marketing
plan can also be described as a technique that helps a business to decide on the best use of
its resources to achieve corporate objectives. It can also contain full analysis of strength and
weaknesses of a company, its organization and its products.
In our business, we introduced a product that is not yet produced in Malaysia which is food
paper packaging with a unique design and specifically for fast-food chain. Malaysians are
really like to eat fast food such as Mc Donald, Burger King and we decided to come out an
idea to enhance the current packaging of fast-food chain. We want to be a supplier of this
fast-food chain to make our product is known globally.
5.1 PRODUCT OR SERVICE DESCRIPTION
Product description is a content that explain the features and characteristics of product. In
general, product description is used on online retail sites and serves to inform the potential
customers and encourage them to purchase.
Our product paper packaging is made from cardboard. The packaging has holes to place a
cup of soda, two pockets to place burger and fries. Moreover, the advantage of our product
is our food paper packaging can be recycled and it will prevent from food packaging wastage
as PORTA VIA company aim to make a product that is “Go Green”.

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5.2 TARGET MARKET
A target market refers to a group of potential customers to whom a company wants to sell its
products and services. This group also includes specific customers to whom a company
directs its marketing effort. It will be much easier for the organization to ensure that
marketing fulfil customers’ needs and wants as well as bring profits.
It does not mean we only focus on this group of people and ignore others that are not in our
target market. Other group is our secondary market and also can bring income to our
business.
Other than that, the importance of identifying the target market is so that we can estimate
and do an early estimation on weather our service is good enough to compete with other
competitors. This process is also known as the market opportunity analysis (MOA). From the
research done, we know that there are three general strategies used for selecting the target
market that are by appealing to the entire market with one marketing mix, concentrating on
one segment or appealing to multiple market segments using multiple mixes.
PORTA VIA Company focuses on:
5.2.1 Geographic Segmentation
To execute our business, we have decided to open our first company in Glenmarie
Industrial Park, Shah Alam. The place that we choose is nearby to the urban area
and fast food place. So that, our clients can easily find and doing business with us.
This is the one of the ways to attract more customers.
5.2.2 Psychographic Segmentation
Psychographic segmentation divides the market into group according to the

customer’s lifestyle. Activities, interest and opinion (AIO) surveys of one tool of
measuring lifestyle. From our research, our product can be acceptable by people that
come for all level of income and both genders. We also competing with others
company that supply plastic and others. However, our product is unique and different
from others.

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5.3 MARKET SIZED
Market size is the process by which the prices of goods and services establish. Market size
also can be defined as the number of buyers and sellers in a certain market from the target
market. A market facilities trade and enable the distribution and a location of resources in a
society. It also allows any trade-able item to be evaluated and price.
The population in Shah Alam is 189,000. The price per product to be offered is depending on
the quantity of demand from the fast food chain.
Table 5.0 – Market sized
Brand Number of Number of Estimated Estimated Total

Fast Foods Customers Demand Sale Per Estimated
in Area Product Sale
(%)
Monthly
(RM)
McDonald’s 11 110,000 80% 88,000 x 1.5 132,000
KFC 8 64,000 30% 19,200 x 1.5 28,800
Burger King 3 15,000 80% 12,000 x 1.5 18,000
A&W 1 3,000 60% 1,800 x 1.5 2,700
TOTAL 181,500
Estimated total sale per year = 181,500 x 12 = RM 2,178,000
5.3.1 – Competitors
Table 5.1 – Competitors of PORTA VIA
Competitors Strength Weakness

Foodabox  Can customized the  Expensive
food packaging
 Variety of choices
 Microwaveable
 Leak-proof and
durable
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Starnet  Variety of choices  Not fully recyclable

 Many size
5.4 MARKET SHARE
Market share represents the percentage of an industry or a market’s total sales that is
earned by particular company over a specified time period. Market share is calculated by
taking the company’s sales over the period and dividing it by the total sales of the industry
over the same period. This metric is used to give a general idea of the size of a company in
a relation to its market and its competitors.
PORTA VIA has done a research and seems like PORTA VIA company has a good potential
to increase our sales in the business of food packaging. The reason is because our
competitors did not implement the reusable packaging to be used in our daily lives. PORTA
VIA company already made an online questionnaire and most of them agree to produce a
paper food packaging that are easy to use and can be used many times.
Below is the market share that we have estimated before the involvement of PORTA VIA
company:
Table 5.2 – Market share before the involvement of PORTA VIA
No Competitors Market Share (%) Profits (RM)

1 Foodabox 55% 500,000
2 Starnet 45% 450,000
TOTAL 100% 1,000,000
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Below is the market share that we have estimated after the involvement of PORTA
VIA company:
Table 5.3 – Market share after the involvement of PORTA VIA
No Competitors Market Share (%) Profits (RM)

1 Foodabox 45% 450,000
2 Starnet 36.85% 368,500
3 PORTA VIA 18.15% 181,500
TOTAL 100% 1,000,000
Pie chart 5.0 – Market share before the involvement of PORTA VIA
Market Share
Foodabox Starnet
45.00%
55.00%
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Pie chart 5.1 – Market share after the involvement of PORTA VIA
Market Share
Foodabox Starnet PORTA VIA
18.15%
45.00%
36.85%
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5.5 SALES FORECAST
Table 5.4 – Sales forecast for year 2019
Month Sales Forecast

January 150,000
February 150,000
March 165,000
April 165,000
May 165,000
June 170,000
July 170,000
August 180,000
September 180,000
October 185,000
November 185,000
December 190,000
Table 5.5 – Sales forecast by year
Year Percentage Increase (%) Sales Forecast (RM)

1 - 1,983,000
2 10% 2,181,000
3 15% 2,508,495
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5.6 MARKETING STRATEGY
Marketing strategy is a long-term, forward-looking approach to planning with the

fundamental goal of achieving sustainable competitive advantage. It involves strategic
planning and strategic marketing.
In order to compete with our competitors, we followed four (4) strategies to compete:
1. Product Strategy
To market our product, PORTA VIA uses SWOT analysis to determines our strength,
weakness, opportunity and threat. Thus, we can accomplish our objectives and
minimise any possible outcomes.
a) Strength
We offer good quality paper food packaging
Our product is durable
People can carry their food and drinks with just

one hand
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b) Weakness
We are a new venture company and customers

might not know our existence
Lack of experience in food packaging business
c) Opportunity
There is high potential in oppurtunity because

we offer new food packaging design
Our product has unique design
d) Threat
There are many competitors in this market
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2. Price Strategy
It refers to method companies use to price their products and services. Almost all
companies, either large or small, base the price of their products according to its
labour and advertising expenses.
We provide very affordable price for our customers compared to our

competitors.
3. Location Strategy
A location strategy is plan for obtaining the optimal location for company by
identifying company needs and objectives. Also searching for locations with offerings
that are compatible with these needs and objectives.
Our company is located in Glenmarie Industrial Park, Shah Alam and it is

easy to access to the area.
4. Promotion Strategy
It is designed to inform, persuade, or remind target audiences about its products.
We are planning to promote our company through brochure and

business cards.
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Example for PORTA VIA’s promotion strategy:
a) Flyers
Picture 5.0 – PORTA VIA’s flyers
b) Business cards
Picture 5.1 – PORTA VIA’s business card
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5.7 MARKETING BUDGET
Table 5.6 – Marketing budget of PORTA VIA
Item Fixed Assets Monthly Other Expenses Total (RM)

Expenses (RM) (RM)
Fixed Assets
Signboard 1,500 - - 1,500

Other
Expenses
200
Brochure
- - 2,000 2,400
Signboard
200
license
Others
TOTAL 1,500 - 2,400 3,900
Table 6.6 shows the marketing budget of PORTA VIA. The amount of fixed assets is
RM1,500 and other expenses is RM2,400. The total amount for marketing budget is
RM3,900.
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6.0 OPERATION PLAN
The operational plan is one of the most important factors to consider in a business. Like
other companies, our target is to ensure that our services are the best in quality and able to
satisfy our customers’ needs and wants. Hence, a systematic operational plan is formed so
that our business runs smoothly and achieves its objectives.
6.1 OPERATION PROCESS
Operation process is an organized set of activities or tasks that produces a specific service
or product. There are three main elements in operational process which are inputs,
transformation process and outputs.
Diagram 6.0 – PORTA VIA’s operation process
Input
Laser cutting
Workers Raw materials Printing machine
machine
Tranformation Process
Production process Inspection process Packaging process
Output
Positive image for the
Quality products Satisfied user
company
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6.2 PROCESS FLOW CHART
Table 6.0 – Description of process flow chart symbols
Symbols Types of Activity Description

Production It is the action of making or
manufacturing components or raw
materials, or the process of being
manufactured
Inspection Conducting inspection during the
production process. It helps to control
the quality of products by helping to fix
the sources of defects immediately
Transportation The movement of goods from one
location to another. It helps to transport
the product to the customers
Storage The finished products will be stored in
the storage area.
Printing the design of the food packaging
Cut the design by using the laser cut

machine
Inspection process
Put in the storage
Transport the products to the customers
6.3 CAPACITY PLANNING
Capacity planning is the process of determining the production capacity needed by an

organization to meet changing demands for its products. In the context of capacity planning,
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design capacity is the maximum amount of work that an organization is capable of

completing in a given period. Effective capacity is the maximum of work that an organization
is capable completing in a given period due to constraints such as quality problems, delays,
material handling and many more.
The phase is also used in business computing and information technology as a synonym for
capacity management. IT capacity planning involves estimating the storage, computer
hardware, software and connection infrastructure resources required over some future
period of time. A common concern of enterprises is whether the required sources are in
place to handle an increase in users or number of interactions.
6.3.1 Output in Units
PORTA VIA packaging for a unit
Average sales forecast per month = RM 150,000

Price per unit = RM 1.50
Number of outputs per month = 150,000 / 1.50
= 100,000 units per month

Working days per month is 28 days
Total amount produced per day = 100,000 / 28 days
= 3,571.43 ~ 3,571 units per day
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6.3.2 Operations time
Operations time is the time interval between the instant of the occurrence of a specified input
condition to a system and the instant of completion of a specified operation.
PORTA VIA operates 5 days per week. Our company of closed days is Saturday, Sunday
and also public holidays for workers to rest. The rest hour for workers is 1 hour and 30
minutes. From Monday until Thursday, the rest hour is on 1.00 pm until 2.30 pm which is
sufficient for workers to rest except on Friday, the rest hour will be about 2 hours and 30
minutes and is on 12.00 pm until 2.30 pm because male workers need to perform Jumaat
prayer.
Table 6.1 – Operations time of PORTA VIA
Operating Days Operating Hours

Monday – Friday 8:00 am – 6:00 pm
Saturday, Sunday and Public Holidays Closed
Based on table 6.1 above, the operations time of PORTA VIA shows that it only operates 5
days per week which is Monday until Friday. While Saturday, Sunday and public holidays,
will be its off days.
6.4 MATERIAL REQUIREMENT
Table 6.2 – Material Requirements
No Material Quantity Safety Total Unit / Total

Stock Material Price Price
Requiremen (RM) (RM)
t
1 Cardboard 50,000 5,000 55,000 0.80 44,000
2 Glue gun 80 20 100 10.00 1,000
3 Double tape 50 10 60 5.00 300
4 Paper 30,000 1,000 31,000 0.50 15,500
TOTAL 60,800
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Based on the table 6.2 material requirements, there are four types of material needed to
produce PORTA VIA food packaging. Firstly, we use cardboard, a unit price for cardboard is
RM0.80 and the total price for 55,000 units is RM44,000. Next material is glue gun. A unit
price of glue gun is RM10.00 and the total price for 100 units is RM1,000. After that, another
material that is needed to produce PORTA VIA paper packaging is double tape. A unit price
for double tape is RM5.00 and total price for 60 units is RM300. Lastly, the material needed
is hard paper. A unit price for hard paper is RM0.50 and the total price for 31,000 units is
RM15,500.
6.5 LIST OF OPERATION PERSONNEL
Table 6.3 – List of Administrative Personnel
Position Number of Personnel
Operation Manager 1
Driver 1
General workers 5
The table above shows the list of operation personnel. The number of store manager and
driver consists of one personnel only while general workers consist of five personnel.
6.6 LIST OF TASKS AND RESPONSIBILITIES
Table 6.4 – List of tasks and responsibilities
Position Task and Responsibilities

 Ensures that machinery and
Operation Manager equipment used have the ability to
produce goods and services for
client at an acceptable standard.
 Operation manager plays a key role
in chalking out the overall
operational policy.
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 Operation manager plays a vital role

in maximizing the output of the
various support services such as
finance, IT and HR.
 Operation manager needs to ensure
that standard procedures are
followed when third parties are hired.
 Driving clients daily to their desired
Driver destination.
 Maintaining the vehicle safe and
clean.
 Using navigation apps to determine
the best route.
 Pick up clients from the place and at
the time they’ve requested.
 Analyse all products through various
General Workers stages of production to ensure
optimal level of quality.
 Coordinate with production manager
and perform all general duties as
required by same.
 Handle all emergencies and difficult
situations efficiently and investigate
all issues to provide resolution for
same.
 Ensure compliance all safety policies
and procedures and provide
protective gear to all workers to
maintain safety in unit.
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6.7 SCHEDULE OF REMUNERATION
Remuneration is basically referred to payment. In other words, it is compensation or reward

for doing something. More technically, we can define remuneration as the sum of all the
financial and non-financial compensation an employee receives.
There are two types of compensation in terms of financial and non-financial. Examples of
financial compensation such as salary, hourly and also overtime pay. Examples of non-
financial compensation are such as sick leave, health insurance coverage, vacation leave
and many more.
In operational plan, the remuneration for general manager, financial manager, operation
manager and workers included 11% Employees Provident Fund (EPF) while for Social
Security Contribution (SOCSO), it contributes 1.75%.
Table 6.5 – Schedule of remuneration
Position Quantity Monthly EPF SOCSO Total (RM)

Salary (RM)
Operation 1 4,000 440 70 4,510
Manager
Driver 1 1,800 198 31.50 2,029.50
General 5 1,800 x 5 = 990 157.50 10,147.50
Workers 9,000
TOTAL 7 14,800 1,628 259 16,687
Based on the Table 6.5, it shows the Schedule of Remuneration, it shows the salary of the
personnel under operation plan in PORTA VIA company. The Employees Provident Fund
11% and Social Security Contribution is 1.75%. As for operation manager, the monthly salary
is RM4,000 and after adding the EPF which is RM440 and SOCSO RM70, the monthly
salary for operation manager is RM4,510. Next, the monthly salary for driver is RM1,800.
After adding the EPF which is RM198 and SOCSO of RM31.50, the monthly salary for driver
is RM2,029.50.
The number of personnel which is in position of general workers is five and the monthly
salary for each of worker is RM1,800 and the total for five workers is RM9,000. After the
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adding of EPF which is RM990 and SOCSO RM157.50, the monthly salary for five general
workers is RM10,147.50.
6.8 MACHINERY AND EQUIPMENT
Table 6.5 – Machinery and equipment
No Type Quantity Price/unit Total
(RM) (RM)
1 Printing machine 1 5,200 5,200
2 Laser cutting machine 1 5,000 5,000
TOTAL 10,200
Table 6.5 shows the machinery and equipment that we need. The price of printing machine
is RM5,200 and laser cutting machine is RM5,000. The total price of the machinery and
equipment is RM10,200.
6.9 OPERATION LAYOUT PLAN
Operation layout plan and design is important component of a business’ overall process.
Especially in terms of maximizing the effectiveness of the production process and meeting
the needs of the employees. The objective of layout system is to ensure smooth flow of
work, material, and information through system. Meanwhile, facility is the space in which a
business’ activities take place. The layout and the design impact greatly on how the work is
done such as the flow of work, material, and information through the system. The key to
good facility layout and design is the integration of the needs of personnel and customers,
materials, and machinery in such a way that they create a single, well function system.
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Diagram 6.1 – Office layout
Diagram 6.1 above shows PORTA VIA’s office layout plan at Glenmarie Industrial Park, Shah
Alam.
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Diagram 6.2 – Production layout
Diagram 6.2 above shows PORTA VIA’s production layout plan at our production site in
Glenmarie Industrial Park, Shah Alam.
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6.10 LOCATION (PRODUCTION SITE)
Picture 6.0 – The location of the company.
we are here
PORTA VIA production site is located at 5, Jalan Penyair U2/44 Glenmarie Industrial Park,
Shah Alam. The reason why we chose Glenmarie Industrial Park, Shah Alam because Shah
Alam is the state capital of Selangor. On top of that, it is nearby to the urban area and
fast food restaurants. It is easier for our clients to find and doing business with us.
This is also the one of the ways to attract more customers.
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6.11 OPERATION OVERHEAD
Table 6.7 – Types of Overhead
No Types of overhead Monthly cost (RM)

1 Electricity 1,000
2 Water 500
3 Telephone 300
4 Internet 500
5 Machine maintenance 2,000
6 Vehicle maintenance 500
TOTAL 4,800
The table 6.7 shows the types of overhead and the monthly cost of electricity of PORTA VIA.
The monthly cost for the operation overhead of PORTA VIA is RM4,800 per month.
6.12 OPERATION BUDGET
Table 6.7 – Operation Budget of PORTA VIA
Items Fixed Assets Monthly Other Total

Expenses Expenses
(RM) (RM)
(RM) (RM)
Fixed Assets
Machine and 10,200 - - 50,200

equipment
Vehicle 40,000
Working Capital
Raw Material 60,800
Salaries 14,800
EPF 1,628
SOCSO - 259 - 87,287
Rent 5,000
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Operation 4,800
overhead
Other Expenses
Deposit rent - - 1,000
Insurance for 800 1,800

vehicle
TOTAL 50,200 87,287 1,800 139,287
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7.0 ADMINISTRATIVE PLAN
The business is introduced by stating its vision, mission and objectives. The organization’s
vision is he framework for all strategic planning and portrays the long-term goal of the
business. It is the result of the entrepreneur’s dream of something that does not exist and his
ability to realize his dream so that the society is able to view it. A clearly defined vision
provides direction, determines decisions, and motivates employees.
7.1 BUSINESS VISION, MISSION AND OBJECTIVES
Table 7.0 – Vision, Mission and Objectives of PORTA VIA
Our vision is to become company that

produce products than can fulfil the needs
and wants of customer and become the first
Vision
choice of food packaging company for fast-
food chain.
Our mission is to ensure the quality of the
product and continuously improve the
Mission
product for the long-term success.
 Create a whole new level type of
food packaging that is suitable to
use in Malaysia and other countries
Objectives
 To reduce the usage of plastic in
fast food chain
 Ensure that the product will not
harm the environment and eco-
system
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7.2 ORGANIZATIONAL CHART
Diagram 7.0 – The organizational chart of PORTA VIA
General Manager
Financial Marketing Operation

Manager Manager Manager
General Workers
Driver
7.3 LIST OF ADMINISTRATIVE PERSONNEL
Table 7.1 – List of Administrative Personnel in PORTA VIA
Position Number of Personnel

General Manager 1
Financial Manager 1
Marketing Manager 1
TOTAL 3
The table above shows the list of operation personnel. There are one General Manager, one
Financial Manager and same goes to Marketing Manager which is the number of personnel
is one. The numbers of personnel for general workers consists of five personnel and the total
numbers of personnel is eight.
7.4 SCHEDULE OF TASK AND RESPONSIBILITIES
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Table 7.2 – Task and Responsibilities for each position in PORTA VIA
Position Task and Responsibilities

 Plan, coordinate and manage all
business operations to achieve
General Manager
corporate goals.
 Develop and implement business plan
for profitability.
 Develop strategies to improve overall
quality and productivity.
 Generate business, cost and employee
reports to management
 Evaluate the effectiveness of marketing
program and recommend
improvements.
 Schedule regular team meetings to
discuss about business updates, issues
and recommendations.
 Develops and implement policies and
procedures to improve operations and
Financial Manager
functions of the department.
 Maintains administrative staff by
recruiting, selecting, orienting and
training employees.
 Initiates and coordinate goals,
deadlines and projects for their
departments.
 Manages the maintenance and repair of
machinery, equipment, electrical and
mechanical systems.
 Develop pricing strategies, balancing
firm objectives, and customer
Marketing Manager
satisfaction.
 Identify, develop and evaluate
marketing strategy
 Evaluate the financial aspects of
product development such as budget,
35

lOMoARcPSD|7903629
expenditures.
 Formulate, direct and coordinate
marketing activities and policies to
promote products and services.
 Consult with product development
personnel on product specifications
such as design, colour and packaging.
 Ensures that machinery and equipment
Operation Manager used have the ability to produce goods
and services for client at an acceptable
standard.
 Operation manager plays a key role in
chalking out the overall operational
policy.
 Operation manager plays a vital role in
maximizing the output of the various
support services such as finance, IT and
HR.
 Operation manager needs to ensure
that standard procedures are followed
when third parties are hired.
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7.5 SCHEDULE OF REMUNERATION (ADMINISTRATIVE WORKERS)
Remuneration is basically referred to payment. In other words, it is compensation or reward

for doing something. More technically, we can define remuneration as the sum of all the
financial and non-financial compensation an employee receives.
There are two types of compensation in terms of financial and non-financial. Examples of
financial compensation such as salary, hourly and also overtime pay. Examples of non-
financial compensation are such as sick leave, health insurance coverage, vacation leave
and many more.
In operational plan, the remuneration for general manager, financial manager, operation
manager and workers included 11% Employees Provident Fund (EPF) while for Social
Security Contribution (SOCSO), it contributes 1.75%.
Table 7.3 – List of Administrative Personnel in PORTA VIA
Position Number of Monthly EPF SOCSO TOTAL

staffs salary
(RM)
General 1 5,000 550 87.50 5,637.50
Manager
Financial 1 4,000 440 70 4,510
Manager
Marketing 1 4,000 440 70 4,510
Manager
TOTAL 13,000 1,430 227.50 14,657.50
Based on the Table 7.3 of Schedule of Remuneration (Administrative workers), it shows the
salary of all the personnel in PORTA VIA company. The Employees Provident Fund id 11%
and Social Security Contribution is 1.75%. As for general manager, the monthly salary is
RM5,000 and after adding the EPF which is RM550 and SOCSO RM87.50, the monthly
salary for general manager is RM5,637.50.
Next, the monthly salary for financial manager and marketing manager has the same
amount, which is RM4,000. After adding the EPF which is RM440 and SOCSO of RM70, the
monthly salary for both financial manager and operation manager is RM4,510.
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7.6 LIST OF OFFICE FURNITURE, FITTINGS AND SUPPLIES
Furniture and fittings are larger items of movable equipment that are used to furnish an
office. Examples are desks, chairs, cabinets and more. This is a commonly used fixed asset
classification that is categorized as a long-term asset on an organization’s balance sheet.
These assets have a mid-range depreciation period, typically in the range of five to ten
years.
Table 7.4 – Furniture and fittings
No Type Quantity Price/Unit Total
(RM) (RM)
1 Desks 4 729 2,916
2 Desk Chairs 4 399 1,596
3 Telephone 4 37 148
4 Printer 2 787 1,574
5 Storage cabinets 4 469 1,876
6 Desktops 4 4,749 18,996
7 Bookcases 4 229 916
8 Air conditioner 2 1,919 3,838
9 Fire extinguisher 2 95 190
10 Coffee table 1 399 399
11 Sofa 2 699 1,398
TOTAL 33,847
Table above shows the list of office furniture and fittings and also the total price of all the
items for furniture and fittings. The total price for 4 units of desks is RM2,916 and the total
price for its chairs is RM RM1,596. The total price for 4 units of telephone is RM148. While
the price of 2 units of printer is RM1,574. Other than that, the price of 4 units of storage
cabinets is RM1,876. While the price for 4 units of desktop is RM18,996. The price for
bookcases is RM916 and for air conditioner and fire extinguisher RM3,838 and RM190
respectively. Meanwhile, the price for coffee table and sofa is RM399 and RM1,398
respectively.
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Office supplies are consumables and equipment regularly used in offices by business and
other organizations, by individuals engaged in written communications, recordkeeping or
bookkeeping. The range of items classified as office supplies such as notebooks, pencils,
pens, calculator and many more.
Table 7.5 – Office supplies
No Type Quantity Price/Unit Total
(RM) (RM)
1 Pens (box) 2 30 60
2 Staplers 4 3.80 15.20
4 Box of A4 paper 1 62.50 62.50
5 Ruler 4 1 4
6 Scissors 4 5 20
7 Calculators 4 10 40
8 Binder clips 4 4.90 19.60
9 Paper clips 4 1.30 5.20
TOTAL 226.50
Table above shows the list and the pricing of office supplies. The price of boxes of pens,
staplers, box of A4 paper and ruler is RM60, RM15.20, RM62.50, and RM4 respectively.
Next, the price of scissors, calculators, binder clips and paper clips are RM20, RM40,
RM19.60 and RM5.20 respectively.
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7.7 ADMINISTRATIVE BUDGET
Table 7.6 – Administration budget
Item Fixed Assets Monthly Other Total (RM)

(RM) Expenses (RM) Expenses (RM)
Fixed Asset
Office furniture 33,847 - - 33,487

and fittings
Working
Capital
- 14,567 -
Salary
2,420 17,598.50
EPF
385
SOCSO
226.50
Office supplies
TOTAL 33,847 18,098.50 - 51,085.50
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lOMoARcPSD|7903629
8.0 FINANCIAL PLAN
A financial plan is a comprehensive statement of a company’s long-term objectives for

security and well-being and a detailed savings and investing strategy for achieving those
objectives.
A financial plan is important for the overall success of PORTA VIA because it helps to
determine the size of investment that is the project implementation cost, identify and propose
the relevant sources of finance.
8.1 PROJECT IMPLEMENTATION COST
Table 8.0 – Project Implementation Cost
PORTA VIA
PROJECT IMPLEMENTATION COST
Requirement Cost (RM)

Fixed Assets
Signboard 1,500
Machine and equipment 10,200
Vehicle 40,000
Office furniture and fittings 33,847
85,547
Working Capital (per month)
Operation 16,687
Administrative 14,657.50
Raw materials 60,800
92,144.50
Other expenses
Deposit rent 1,000
Insurance for vehicle 800
Brochure 200
Signboard license 2,000
Business cards 200
4,700
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TOTAL 182,391.50
Based on table 8.0, it shows all the project implementation cost for PORTA VIA. The total
cost of fixed assets is RM85,547. A total of monthly working capital is RM92,144.50. while
the cost of other expenses is RM4,700.
8.2 SOURCES OF FINANCE
Terms of loan:
1) Loan duration 5 years
2) Interest rate is 2.5%
Table 8.1 – Sources of Finance
PORTA VIA
SOURCES OF FINANCE
Requirement Loan (RM) Own contribution

Cash (RM) Existing Assets
Fixed Assets
Signboard 1,500
Machine and 10,200
equipment
Vehicle 40,000
Office furniture and 33,847
fittings
Working Capital
(per month)
Operation 16,687
Administrative 14,657.50
Other expenses
Insurance for vehicle 800
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Brochure 200
Signboard license 2,000
Business cards 200
TOTAL 136,191.50 4,700 40,000
Based on table 8.1, it shows the sources of finance of PORTA VIA includes loan and own
contributions. The amount of loan taken by PORTA VIA is RM135,191.50.
8.3 LOAN AMORTIZATION REPAYMENT SCHEDULE
An amortization schedule is a complete table of periodic loan payments showing the amount
of principal and the amount of interest that comprise each payment until the loan is paid off
at the end of its term. While each periodic payment is the same amount early in the
schedule, the majority of each payment is interest in which later in the schedule, the majority
of each payment covers the loan’s principal.
Table 8.2 – Loan Amortization Repayment Schedule
LOAN AMORTIZATION REPAYMENT SCHEDULE
Amount = RM136,191.50
Interest = 2.5%
Duration = 5 years
Year Principal Interest Total Payment Principal
Balance
0 - - - 136,191.50
1 27,238.30 3,404.79 30,643.09 105,548.41
2 27,238.30 2,638.71 29,877.01 75,671.40
3 27,238.30 1,891.80 29,130.10 46,451.20
4 27,238.30 1,163.53 28,401.83 18,049.37
5 27,238.30 451.23 27,689.53 -
Table 8.2 above shows the loan amortization repayment schedule for PORTA VIA. The
company’s total amount of loan is RM139,191.50, where the interest rate is charged 2.5%
43

lOMoARcPSD|7903629
per year. The loan is estimated to be settle off completely within the period of 5 years. By
that time, the amount of loan will be paid off completely.
8.4 NON-CURRENT ASSETS DEPRECIATION SCHEDULE
Table 8.3 – Non-current assets depreciation schedule for signboard
Fixed Assets Cost (RM)
Economic life = 5 years
Method = straight line method
Signboard = 1,500
Year Annual Accumulated Book value
Depreciation Depreciation
0 - - 1,500
1 300 300 1,200
2 300 600 900
3 300 900 600
4 300 1,200 300
5 300 1,500 -
According to table 8.3, it shows the depreciation schedules of signboard. The economic life
required is five years under the depreciation. The initial book value of the non-current assets
is RM1,500. The annual depreciation for each year is RM300.
Table 8.4 – Non-current assets depreciation schedule for machines and equipment
Machines and equipment = 10,200

44

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0 - - 10,200
1 2,040 2,040 8,160
2 2,040 4,080 6,120
3 2,040 6,120 4,080
4 2,040 8,160 2,040
5 2,040 10,200 -
According to table 8.4, it shows the depreciation schedules of machines and equipment. The
economic life required is five years under the depreciation. The initial book value of the non-
current assets is RM10,200. The annual depreciation for each year is RM2,040.
Table 8.5 – Non-current assets depreciation schedule for office furniture and fittings
Office furniture and fittings = 33,847

0 - - 33,847
1 6,769.40 6,769.40 27,077.60
2 6,769.40 13,538.80 20,308.20
3 6,769.40 20,308.20 13,538.80
4 6,769.40 27,077.60 6,769.40
5 6,769.40 33,847 -
According to table 8.5, it shows the depreciation schedules of office furniture and fittings.
The economic life required is five years under the depreciation. The initial book value of the
non-current assets is RM33,847. The annual depreciation for each year is RM6,769.40.
45

lOMoARcPSD|7903629
Table 8.6 – Non-current assets depreciation schedule for vehicle
Vehicle = 40,000
0 - - 40,000
1 8,000 8,000 32,000
2 8,000 16,000 24,000
3 8,000 24,000 16,000
4 8,000 32,000 8,000
5 8,000 40,000 -
According to table 8.6, it shows the depreciation schedules of vehicle. The economic life
required is five years under the depreciation. The initial book value of the non-current assets
is RM40,000. The annual depreciation for each year is RM8,000.
8.5 PRO-FORMA CASH FLOW STATEMENT
Table 8.7 – Pro-forma cash flow statement
Year 1 2 3
CASH INFLOWS
Cash sales 1,983,000 2,181,000 2,508,495
Total loan 136,191.50
TOTAL CASH INFLOWS 2,119,192 2,181,000 2,508,495
CASH PAYMENTS
Marketing Expenses
Brochure 200 200 200
Signboard license 2,000 2,000 2,000
Business cards 200 200 200
46

lOMoARcPSD|7903629
Operation Expenses
Raw Material 729,600 802,560 922,944
Salaries 14,800 16,280 18,722
EPF 1,628 1,791 2,059.65
SOCSO 259 285 327.75
Rent 5,000 5,000 5,000
Operation overhead 4,800 5,200 5,980
Administrative Expenses
Salary 14,567 16,024 18,427.60
EPF 2,420 2,662 3,061.30
SOCSO 385 424 487.60
Office supplies 226.5 250 287.50
Loan Repayments
Principal 27,238.30 27,238.30 27,238.30
Interest 3,404.79 2,638.71 1,891.80
TOTAL CASH OUTFLOW 806,728.59 868,536.59 1,196,031.59
EXCESS/DEFICIT 1,312,463.41 1,312,463.41 1,312,463.41
OPENING BALANCE - - -
FINAL BALANCE 1,312,463.41 1,312,463.41 1,312,463.41
Based on table 8.7, it shows the pro-forma cashflow of PORTA VIA. Total cash inflow of year
1 is RM2,119,192. While the total inflow for the year two and year three is RM2,181,000 and
RM2,508,495 respectively. As for the total cash outflows, year one, year two and year three
are RM806,728.59, RM868,536.59 and RM1,196,031.59 respectively.
8.6 PRO-FORMA MANUFACTURING ACCOUNT
Table 8.8 – Pro-forma manufacturing account (month)
PORTA VIA
PRO-FORMA MANUFACTURING ACCOUNT (MONTH)

Particular RM RM Particular RM RM
Direct Materials Closing stock:
Opening stock: Raw materials 60,800
Raw materials 60,800 Cost of goods 48,174
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Purchases:
121,600
Direct expenses
Rent 5,000
Salaries 16,687
Operation overhead 87,287
108,974 108,974
Table 8.8 shows the pro-forma of manufacturing account for PORTA VIA. The amount of
direct material is RM121,600 while for direct expenses is RM108,974. As for the closing
stock, it consists of raw materials and cost of goods where the final balance is RM108,974.
8.7 PRO-FORMA PROFIT AND LOSS ACCOUNT INCOME
Table 8.9 – Pro-forma profit and loss account income
PORTA VIA
PRO-FORMA STATEMENT OF PROFIT OR LOSS FOR THREE CONSECUTIVE YEARS

Year 1 2 3
Sales 1,983,000 2,181,000 2,508,495
Less: Cost of sales (good sold)
Opening stock 729, 600 802,560 922,944
Purchases 729, 600 802,560 922,944
Goods available for sales 1,459,200 1,605,120 1,845,888

Less: closing stock 729, 600 802,560 922,944
Gross profit 1,253,400 1,378,440 1,585,551

Less: Operating Expenses
Administrative Expenditure
Salaries 14,567 16,024 18,427.60
EPF 2,420 2,662 3,061.30
SOCSO 385 424 487.60
Office supplies 226.5 250 287.50
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Marketing Expenditure
Brochure 200 200 200
Signboard license 2,000 2,000 2,000
Business cards 200 200 200
Operation expenditure
Raw materials 729,600 802,560 922,944
Salaries 14,800 16,280 18,722
EPF 1,628 1,791 2,059.65
SOCSO 259 285 327.75
Rent 5,000 5,000 5,000
Operation overhead 4,800 5,200 5,980
Financial Expenditure
Principal 27,238.30 27,238.30 27,238.30
Interest 3,404.79 2,638.71 1,891.80
TOTAL OPERATING EXPENSES 806,729 882,753 1,008,827.50

NET PROFIT/LOSS BEFORE TAX 446,671 495,687 576,723.5
TAX - - -
NET PROFIT AFTER TAX 446,671 495,687 576,723.50
TOTAL BROUGHT FORWARD
- 446,671 942,358
PROFIT
ACCUMULATED NET
446,671 942,358 1,519,081.50
PROFIT/LOSS
Table 8.9 shows the pro-forma statement of profit or loss for three consecutive years. The
gross profit for the first year is RM1,253,400. While the second and third year is RM
1,378,440 and RM1,585,551 respectively. The pro-forma also shows the net profit of each
year. The net profit for the first year is RM446,671 and for the second and third year is
RM942,358 and RM1,519,081.50 respectively.
8.9 PRO-FORMA BALANCE SHEET
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Table 8.10 – Pro-forma balance sheet
PORTA VIA
PRO-FORMA STATEMENT OF FINANCIAL POSITION FOR THREE CONSECUTIVE

YEARS
YEAR 1 2 3
ASSETS
Fixed Assets (non-current asset)
Machines and equipment 10,200 10,200 10,200
Office furniture and fittings 33,847 33,847 33,847
Signboard 1,500 1,500 1,500
Current Assets
Cash in hand in bank 431,667 926,588 1,502,564.60
Other Assets
Deposit rent 1,000 1,000 1,000
TOTAL ASSETS 477,314 972,235 1,548,211.60
Owner’s equity
Accumulated profit 446,671 942,358 1,519,081.50
Long-term liabilities
Term Loan 30,643.09 29,877.01 29,130.10
Current liabilities
TOTAL EQUITY AND LIABILITIES 477,314 972,235 1,548,211.60
Table 8.10 shows the pro-forma statement of financial position for three consecutive year.
The amount of total assets and total equity and liability are balanced with the first year
RM477,314, the second year with RM 972,235 and for the third year is RM1,548,211.60.
8.10 FINANCIAL ANALYSIS
Table 8.11 – Financial Analysis
PORTA VIA
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lOMoARcPSD|7903629
FINANCIAL ANALYSIS
YEAR 1 2 3
PROFITABILITY
Net profit margin 22.53% 43.21% 60.56%
Gross profit margin 73.59% 73.59% 73.58%
Return on assets 55.56% 58.78% 60.23%
Return on equity
EFFICIENCY
Fixed asset turnover 35.46% 37.68% 43.35%
Total asset turnover 15.6% 7.26% 6.15%
LEVERAGE
Debt ratio 69.45% 67.76% 65.24%
Table 8.11 shows the financial analysis for PORTA VIA. The financial analysis is based on
the profitability, efficiency and leverage. There are increase in the profitability and efficiency
ratio and a decrease in leverage ratio from year 1 until year 3.
51

lOMoARcPSD|7903629
CONCLUSION
We are grateful to finish this business plan. We have gone through a lot of new experiences
and it is very beneficial for all of us in participating in this business. We hope that our
business will be progressed smoothly in the future. Our target is to become company that
produce products than can fulfil the needs and wants of customer and become the first
choice of food packaging company for fast-food chain even though there are many rivals
exist.
We also hope that with our dedication and hard work, we will achieve our objective which are
create a whole new level type of food packaging that is suitable to use in Malaysia and other
countries.
We will provide full responsibility and commitment and there is no doubt that we will achieve
all these things. We are also encouraged to take any chance that directly or indirectly in
order to increase our business performance in the future.
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lOMoARcPSD|7903629

BUSINESS PLAN ENT300

Fundamentals of Entrepreneurship (Universiti Teknologi MARA)

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1.2 Name of The Business

1.3 Nature of The Business

1.4 Name of Partners

1.5 Location of Business

The premise is located at 5, Jalan Penyair U2/44 Glenmarie Industrial Park,

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2.0 PURPOSE OF THE BUSINESS PLAN

Business plan is set of documents prepared by an organizations’ management to summarize

2.1 Prepare for the future

2.2 Prepare for the financial institutions

2.3 Prepare for the supplier

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3.0 BACKGROUND OF THE BUSINESS

Picture 3.0 – Company’s logo

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4.0 PARTNERS BACKGROUND

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5.0 MARKETING PLAN

5.1 PRODUCT OR SERVICE DESCRIPTION

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5.2 TARGET MARKET

PORTA VIA Company focuses on:

5.2.1 Geographic Segmentation

5.2.2 Psychographic Segmentation

Psychographic segmentation divides the market into group according to the

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5.3 MARKET SIZED

Table 5.0 – Market sized

Brand Number of Number of Estimated Estimated Total

Estimated total sale per year = 181,500 x 12 = RM 2,178,000

Table 5.1 – Competitors of PORTA VIA

Competitors Strength Weakness

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Starnet  Variety of choices  Not fully recyclable

5.4 MARKET SHARE

Table 5.2 – Market share before the involvement of PORTA VIA

No Competitors Market Share (%) Profits (RM)

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Table 5.3 – Market share after the involvement of PORTA VIA

No Competitors Market Share (%) Profits (RM)

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5.5 SALES FORECAST

Table 5.4 – Sales forecast for year 2019

Month Sales Forecast

Table 5.5 – Sales forecast by year

Year Percentage Increase (%) Sales Forecast (RM)

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5.6 MARKETING STRATEGY

Marketing strategy is a long-term, forward-looking approach to planning with the

We offer good quality paper food packaging

Our product is durable

People can carry their food and drinks with just

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We are a new venture company and customers