ISC 500

ISLAMIC ENTREPRENEURSHIP

TITLE: “ENAMOUR COLLECTION”

BUSINESS PLAN

PREPARED FOR: MUHAMMAD SYAHRUL DEEN BIN

AHMAD ROSLI

GROUP: NICBF5A

NAME STUDENT ID

NUR AFIFAH AINAA BINTI IDRIS 2019722751

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 TABLE OF CONTENT

No Description Page

1.0 Executive Summary 3

2.0 Chapter 1 5

3.0 Chapter 2 9

4.0 Chapter 3 14

5.0 Chapter 4 23

6.0 Chapter 5 31

7.0 Chapter 6 37

8.0 Chapter 7 46

9.0 Chapter 8 48

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SECTION l: EXECUTIVE SUMMARY

Malaysian Batik is design of arts, the most popular motifs are leaves and flowers.
Malaysian batik depicting humans or animals are rare because Islam norms forbid animal
images as decoration. However, the butterfly theme is a common exception. The
Malaysian batik is also famous for its geometrical designs, such as spirals. The colors also
tend to be lighter and more vibrant. It represents the variability of Malaysia. Malaysian
batik fabrics do have an international edge because they have brighter hues and more
versatile patterns than the illustrations of animals and humans. Malaysian batik design has
its own identity due perhaps to the multi-cultural and ethnic diversity of the country, to its
wide artistic perspective and its pool of very talented people in the fashion industry. In line
with 1 Malaysia concept, the Malaysian government is now endorsing Malaysian batik as
a national dress to every level of the general population by having local designers to create
new batik designs which reflect the 1Malaysia idea.

Batik is a technique for decorating textiles, by which parts of the textile that are not
to be coloured are covered in molten wax. The wax prevents the textile from absorbing the
dye during the decorating process. There are two main types of batik in Malaysia today
which is hand painted and block printed. These types differ in production techniques,
motif and aesthetic expression, and are often classified according to the tool that has been
used. The painter uses the canting, a small copper container with one or more differently
sized pipes.

Batik is both an art and a craft, which is popular among our society. Today batik
fashion is also becoming popular and well known in the west as a wonderfully creative
medium. Modern designers in Malaysia and Indonesia to a lesser extent Thailand, the
Philippines and elsewhere now often use batik design elements and often actual batik
clothes in their clothing and accessories. As batik is often associated with cloth, we come
out with an idea to innovate the batik itself through shoes fashion. The most interesting
concept of the shoes are we used ‘batik’ pattern or concept that we paint on that shoes. At
the same time, the shoes collection are uniquely which can alter according to customer
preference.

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 This is a business plan for Enamour Collection that created to secure profit
growing and to inform employees of the company’s current status and the
direction.Enamour collection is a startup company which established in the early Jan
2018.The main product of Enamour Collection is shoes which used batik as main
materials.The main goal of the company is to create an affordable price with high quality
to the customers. Although Enamour Collection is an startup company but the company
has a top management that experienced in the area.The target market female shopper
which are students and workers whose are looking for fashionable shoes. Enamour
Collection also customer service oriented, we thrive on giving the customer what they
want, on time and always stylish. Managers inspects shoes to ensure the best quality, with
correct design as per customers request . Our physical store currently located at Seksyen 7,
besides Wong Solo restaurant. We are planning to open a new branch in Bandar Baru
Bangi next year. Enamour Collection will offer wide variety of colours and high quality
materials used in the manufacture. Shoe sizes start from size 5 to size 10 and include half
sizes for example 6 1/2.Expected sales turnover by 2019 will be RM 242 800 and the
expected net profit by 2019 will be RM 23,661.92.

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CHAPTER 1: INTRODUCTION

COMPANY PROFILE

The establishment of Enamour Collection is based on a one stop design &

innovator service provider for people who love uniqueness. We are specialize in the area
innovation of batik through shoes design. We develop products and services based on
customer needs which incorporate both educational research and technology advances. We
will have a better understanding of customers’ changing needs and respond quickly in real
time, build long-term relationships that drive revenues and stimulate service usage.

Our company will generate sufficient revenue and profits and gain financial
resources needed to provide the payment of expenses on the project we undertake. For
long-term gain, we will set aside the necessary financial resources needed for growth,
expand our networks, and improve quality of service as the key strategy to secure
customers loyalty. This approach is in line with the concept of entrepreneurship
development as the country moves forward to accelerate the creation of more
entrepreneurs. The company also focuses on growing the business by leading the target
market with innovation and flexibility.

The management team is made up of a managing monitor, a marketing manager, a

financial manager, an Operation & Production management, and an administration
manager.

Company Profile
Name
Motto
Correspondence Address
Telephone Number
Fax Number
Type of Business
Company Activities
Starting Capital
: Enamour Collection
: Good Shoes Take You Good Places
: Section 7, Shah Alam
: +603-233 3120
: 03-233 2177
: Small Enterprise
: Batik shoes manufacturer
: RM 80 000

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VISION

Providing sustainable fashion at a good honest price.

MISSION STATEMENT

Well-known brands with contemporary fashion accessories, in a pleasant shopping

environment and a working environment in which everyone feels welcome and makes a
committed contribution to continuity by choosing good honest products, prices and
working relationships.

VALUES
I. Trust - We trust and in turn are trusted.
II. Take responsibility - We take responsibility and act responsibly.
III. Together - We create and succeed as one– one aim, one team.
IV. Transparent - We stand for simplicity and transparency.
V. Trigger – We have a passion for what we do and are quick to respond.

BUSINESS OBJECTIVES

Enamour Collection mission is to be the leading producer and marketer of

personalized and affordable price to the customer to have our products. Enamour
Collection wants to inspired and bring confidence to the customers. In addition, Enamour
Collection strives to design and produce a shoes with combination of batik art that will
preserving the natural environment.

During the next five years, Enamour Collection seeks to achieve the following
financial and nonfinancial goals:

FINANCIAL OBJECTIVES

 Obtain financing to expand manufacturing capabilities, increase distribution,

and introduce two new product lines.
 Increase revenues by at least 30 percent each years.

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  Donate at least RM 1,000 a year to corporate social responsibility
organizations.

MARKETING OBJECTIVES

 Introduce two new product lines—sandals and wedges.

 Enter new geographic markets, including western and northeast asia.

 To have new target customer— male students and middle income male

customer

NATURE AND SIZE OF BUSINESS

Batik is both an art and a craft, which is becoming more popular and well known in
the west as a wonderfully creative medium. Batik is often associated with cloth, because
of that Enamour Collection want to innovate the batik itself through shoes fashion. The
most interesting concept of the shoes is using ‘batik’ pattern or concept. At the same time,
the shoes collection are uniquely which can alter according to customer preference.
Enamour Collection will offer wide variety of colour and styles and high quality materials
used in the manufacture. Shoe sizes start from size 5 to size 10 and include half sizes for
example 6 1/2.

Enamour Collection which is a start-up company, is established by professionals

with diverse background and experiences in design, management, finance, and marketing.
For initial funding, the 7 shareholders of this company contributed RM 8572 each, to start
up the company. The total start-up capital is RM 80, 000.RM 60 000 from initial members
and RM 20 000 from SME Bank. Enamour Collection is a small medium company where
we are currently have two people who are working with us. Our physical store currently
located at Seksyen 7 beside Wong Solo Restaurant.Besides that,we all operates our

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business through online. We sell shoes at a reasonable price where everyone can own it.
We opens everyday from 10.00am to 10.00pm.

BACKGROUND OF THE ENTREPRENEURS

NAME NUR AFIFAH AINAA BINTI IDRIS

NRIC NO 951002-10-5986
CORRESPONDENT NO 18 JALAN PUTRA BAHAGIA 8/2L
ADDRESS 47650 PUTRA HEIGHTS
CONTACT NUMBER 017-2768527
DATE OF BIRTH 2 OCTOBER 1995
AGE 27
STATUS SINGLE
QUALIFICATION Diploma of Accountancy (UNISEL)
EXPERIENCE Work As Marketing Assistant Manager at
Proton 2 Years
SKILLS  Communication Skills
 Public Speaking
 Analytic Thinking

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CHAPTER 2:BUSINESS DESCRIPTION

GENERAL DESCRIPTION OF THE PRODUCT

The Enamour is involved in producing and selling shoes with combination of batik
art The company is using brick and click mortar type of business which is through walk in
the shop and order through online business. The Enamour will sell upscale women’s
shoes. The general categories of this shoes that will be sold are :

 Stylish work shoes

 Dress shoes
 Canvas athletic/ stylish shoes

The Enamour will strive to have one of the largest selection shoes in Malaysia. The
Enamour will accomplish this by having one size per style in stock as for demonstration
model. The Enamour will then paint the style in needed and it will be ready in two days
from the day of the order.

FIGURE 1 : SAMPLE OF ENAMOUR COLLECTION

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TARGET MARKET

The Enamour will be targeting two distinct groups of fashion conscious female
shopper which are students and workers. While both groups are interested in dress shoes,
the female workes are also will be looking for fashionable shoes that they are able to wear
with their business attire. The students might be looking for fashionable but more casual
shoes.

These market will be targeted through an attractive and eye catching store front in
a popular mall. Most women within the target market shops at mall. Malls allow them to
visit many different stores within the same vicinity. By just having a storefront in a well
traveled mall, the Enamour will receive walk through customers.

While the leased space in a mall is expensive, one of the benefits that you pay for
is the mall association which spends money on marketing the mall and stores within the
mall.

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GOAL AND POTENTIAL OF THE BUSINESS AND MILESTONES

Enamour Collection have 2 goals of business to achieve which is long term and short term
goals.

Long term goals for Enamour Collection are increasing sales. Company will increase the
sales every year because the company were producing more batik shoes to ship around the
world. Everyone in the world will like the design of the batik shoes and buy at least one in
a year and they can choose variety line of product from clothing to shoes and bags. Next is
brand recognition of the company. Company will continue growing and spread its wing to
international market where everyone known the company names which is Enamour
Collection is fashion brand based on batik pattern from Malaysia. Enamour Collection will
make the design based on customers age and attire when they wear this batik shoes.
Everyone especially youngster will love the shoes because it is comfortable and simple
design that they can wear it to school, collage, university, or hangout with their friends.
Last but not least is sponsor a local charity. Enamour Collection want and will sponsoring
a local charity because the company want to give something back to the community
and the company want to appreciate their customers because the customer shows a
lot of love to company’s brand but also also demonstrates a message that Enamour
Collection company supports causes in the community.

Short term goals for Enamour Collection are increase sales by introducing new design of
batik shoes. Enamour Collection top management will collaborate with design team to
brainstorm new ideas to attract customers to buy the shoes. Next is build and nurture
customer relationships. The company want the employees who can recall
customer details, such as recent purchases, can create conversations around the product.
Ensure that all employees have access to all necessary customer information so they can
easily build high-quality relationships and grow a loyal customer base. Last but not least is
to attract youngster and all generation to buy this batik shoes because the company have
variety shoes to choose which are canvas shoes for youngster wear to college or
university, heels for woman who goes to office.

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UNIQUENESS OF THE PRODUCT

The uniqueness of the Enamour Collection product is use batik as main material in
producing shoes. The uniqueness of Malaysian Batik is the integration of motifs of
flowers, leaves and heritage in an abstract style based on the creativity and identity of the
artisan. In addition the variety of vibrant  tones makes Malaysian batik unique and
appealing to the global market.Primarily, there are two main types of batik are produced in
Malaysia today. Hand-painted or Batik canting and block-printed Batik. The difference
lies in the production techniques, motif and aesthetic expressions; each is often classified
according to the tools used.
batik is the process of making the Batik. For the customers specially ladies that seek for
fashionable shoes yet gives them classic and elagant looks to their attire during working.

BUSINESS LOCATION

Enamour Collection located at Seksyen 7 ,40000 Shah Alam ,Selangor.

FIGURE 2 : LOCATION

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Our business is located at Plaza Shah Alam, Section 7. Shah Alam’s people and location is
our main target. It is because there are a lots of students and many peoples live there, and
we think that it's a strategic place for do and start our business.

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CHAPTER 3 : MARKETING STRATEGY

Marketing is a social and administrative function, which aims to create, develop

and retain customers in an economic activity or exchange of goods and services. In other
words, marketing is the process of communicating the value of the goods or services to
consumers. Marketing can sometimes be interpreted as the art of selling products, but sales
are only one part of marketing. Since the term "marketing" can replace "advertising", it is
the overall strategy and function of offering goods or services to consumers. Marketing
aims to recognize and meet the needs of consumers in maintaining profit activities.

A. RESEARCH AND ANALYSIS

TARGET MARKET

The Enamour will be targeting two distinct groups of fashion conscious female
shopper which are students and workers. While both groups are interested in dress
shoes, the female worker are also will looking for fashionable shoes that they are able
to wear with their business attire. The students might be looks for fashionable with
more casual shoes. The business identified target market based on age because from
the market analysis, the percentage of the student teenagers in Shah Alam is higher
than the adults.
MARKET SIZE AND TREND

The company has identified the market size location at Seksyen 7 which is nearby
with Restoran Wang Solo in Shah Alam. This location is choose based on its popularity
with customers and many events are held here every months. The Enamour estimating
that students or teenagers will spent RM100 a month, working woman will spent RM350 a
month, mothers will spent RM250 a month and the rest of RM300 spent come from the
tourist. The total of estimate market size per month is RM1000.

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COMPETITION

Competition is the rivalry among sellers as trying to achieve such goals as

increasing profits, market share and also sale volume by varying the element of the
marketing.

The Enamour businesses also faced the problem of the existence of competition
from other businesses. Indeed, the competition problems arising from other business that
can provide quality services better business than service in our business. The key to
success is the quality of product produced, and also how the raw material used to produce
the product.

The three main competitors in this industry are Bata, Dr Scholl and Hush Puppies.
Our company doing business online business that will sell high quality ladies shoes within
Malaysia. The Enamour a different company from other shoes companies service because
our company provide traditional fabric with high quality and unique characteristics. In
addition, excess or difference of our company with other existing company is in terms of
the technology and the material it used. Our company used the latest technology and high
quality of material to produce the product.

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FORECASTED SALES

Table : Sales forecast

Month Sales
Units RM120/unit
January 100 RM12000
February 120 RM14000
March 150 RM18000
April 170 RM20400
May 180 RM21600

June 150 RM18000

July 140 RM16800
August 130 RM15600
September 150 RM18000
October 160 RM19200
November 190 RM22800
December 200 RM24000
Year 1 Total Sales 1840 units RM220800
Year 2 Total Sales 1840 units RM220800 x 10% (Mark up)
= RM242880

Year 3 Total Sales 1840 units Rm242880 x 10% (Mark up)

= RM267168

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 Sale forecast for company been recorded and counted as above table. The
marketing manager will forecast the sales that the company earn in every month one the
first year Based on the table can be seen that the sales is fluctuated in the forecast sale
company.

The sales in January is RM12,000. It is a good started amount as the business

newly established. For the month of February, there is slightly changes on the sales
because we increase the unit sales to 20unit. Next, in March, there is increase by RM4,000
as we increase the units of sales. This increase occurred because we had a sales promotion
company in conjunction with the New Year and also in the opening session which took
place a high demand from the customers.

For the month of April and May, company sales revenue slightly went up from
RM20,400 to RM21,600. The increasing in sales revenue was likely caused by
promotional. such as flyers and commercial our product in the website, Facebook and
Instagram. This activities are making people realize about our business.

It has become customary in the business in the event of a decrease and an

increase in sales revenue and not all businesses will be decreased or increased
continuously throughout the year There is some decline in June by RM3,600 and
continuously in July and August to RM16,800 and RM15,600. The unit of shoes have to
decrease due to cover the price movement. The factor of product decreasing is because
there is no festive season during that month.

In the month of September and October, there is slightly increase of sales.by

RM2,400 and RM1,200 respectively. This is because people received bonus and they
know that there will be special promotions and sales will be up due to festive season for
Hari Raya Aidilfitri. For the next two months which is Novermber and December. The
sales increase to RM24,000 compared to previous month which is RM22,800 . The
increasing is due to school holidays or public holidays in between like Hari Malaysia,
Deepavali, Christmas, and people might also be clearing up their annual leave before the
new year begins.

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 The total sales for the year one is RM220,880. We have put our effort to increase
our revenue by doing effective promotion such as giving discount and advertise our
business in social media. This effort was expected to increase our sale. In order to increase
sale and maintain it to every month our management have working very hard to ensure
that we can achieve our target. For the next two year, we will mark up 10% of the price for
each year.

ESTIMATED MARKET SHARE

The Enamour has identified 3 main competitors which are company Bata, Dr
Scholl and Hush Puppies. Based on the analysis, it shows each of the competitors controls
a percentage of the market as shown below.

Market Share Before Entry Of The Enamour:

Company Bata – 40%

Company Dr Scholl – 25%

Company Hush Puppies – 35%

After fully analyze the competitor’s strength and weaknesses, The Enamour is
confident that it can control 20% of the market as a start. This will mean that the existing
competitors will lose some of their market.

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 B. MARKETING PLAN

PRODUCT STRATEGY
In general, The Enamour will be using packaging in a box, brand name and after
sales service as the product and service strategies. The company is focusing at simple and
easy to recognize packaging to attract more customers. As for the brand name, the
company is using the word “Enamour” to promote beautiful and unique shoes design. And
for the after sales service, the company is offering returning item service with terms and
condition.

Brand

We found that the brand name of products offered is really important to attract customers.
The brand name must be unique, desirable and catchy. Our brand name is “Enamour”
which means to natural love of leaves and flowers.

Quality

In order to get customer’s satisfaction and trust, we must sustain high standards and
quality of our based products. Customers nowadays are very concern about their style.
Hence, Enamour is the best choice to fulfill their needs and wants since we are not only
providing high quality of shoes but also style and comfortable.

Product differentiation

We have the power to create instant recognition of our products. As a new brand in the
market, we realized that we must differentiate our products from the competitor’s
products. For instance, we decided to make different packaging styles and designs of our
products compared to all the other outlets. For example, we provide attractive shoes box in
silver shimmering which enhance the uniqueness of the packaging..

Attractiveness

The packaging must be able to attract the customer’s attention. Therefore, we use
attractive design and several of sizes and shapes as well as materials for our products. We

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are confident that we will be able to attract our customer’s attention and indirectly win our
customer’s heart with our product's charm and attractiveness.

PRICING STRATEGY

As for the price strategies, The Enamour is choosing value-based pricing because it
includes the value of new innovation and commercializing batik in shoes design. For the
introduction our products in the market, we offer at lower prices with value so as to create
huge demand in the market and then compete with other competitors As we come up in
the demand, we will increase our prices and will provide more efficient. In addition, The
Enamour believes in customer to decide for them the willingness to pay for the shoes with
their own satisfaction that they received from the product.

SALES AND DISTRIBUTION STRATEGY

The Enamour is using both brick and click mortar business model. As for the
place, the first location chosen is Seksyen 7. The Enamour sales strategy will be based on
display and visibility. A highly visible store with attractive product display located in a
mall will get a high percentage of foot traffic. This is especially the case for a women
shoes store. Women love to shop for shoes. Some women even use shoes shopping as a
form therapy similar to eating chocolate. These activities can make them feel good and
better.

The sales strategy will simply be have the most complete selection of shoes.
Assuming the prices are reasonable, having an extensive selection will drive sales because
we believe our target market of fashion conscious females are always looking for the
perfect pair of shoes with a good prices to coordinate with their fashion styles.

We would offer a sales promotion on monthly basis, such as:

 Buy one and get the second one at 30% discount

 Half off on shoes on previous seasons

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  Buy one and get one free (on selected shoes only)

ADVERTISING AND PROMOTIONAL STRATEGY

For the promotion part, The Enamour is putting their promotion strategies through
fashion show which The Enamour will conduct just to promote the shoes and letting their
target market to actually recognize their product. Next, the company will put an
advertisement or any advertisement media and try to collaborate with government and any
other textile industry to promote more about the shoes. There are several types of
promotion strategy that we plan to make sure that our company can achieve the goal.
“Enamour” use the website, offline and outside advertisement. In addition, our company
also used the online advertisement (social media).

Through the website advertisement, our company has created and develop
company official website enamourbatique.com. Indoor advertisement website, the
management will always updated the latest activity, design, and other customers respond.
The website will also display a list of prices for each product link to the system or
software used by the customer to make the right design directly from the house will also
be included. With the company website, the management is easy to communicate and easy
for customers to get information.

Beside, we create the social media page - facebook, instagram and twitter accounts
based on our company that customers will easily to search us and contact us. The pages of
social media, our company can promote our products online printing service to shopper
and do promotion sales. Next, we hire some instafamous or public figure to wear and
posing with the shoe. Some of the followers might love the shoes when they see o the real
person wear it instead in the picture. Besides, Enamour instagram will increase the
followers.

MARKETING CONTROL AND EVALUATION

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We believe in best quality. In producing our product we maintain quality as well as
quantity. For control the products quality we will choose the best quality with the best
price. We also standardization our product from our expert researcher. Our whole
production process mainly base on labour for this reason is done by a very expertise
person to make the shoes. We produce our product which has no harmful chemical. The
quality of fabric, the process of shoes itself is under quality control. That’s why these
products is confortable , eco environment and every women in every age can use our
entire product.

MARKETING BUDGET

RM RM
ITEM

Fixed Asset

Signboard 1755

1755

Working capital/monthly expenditure

Petrol and diesel 250

250

Other Expenses

Promotion / advertisement 945

-banner
-paid review

Official opening 350

1295

Total (RM) 3300

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 During the marketing process, we include several costs such as signboard,
promotion, official opening, commission, petrol and toll. The company allocated the
marketing budget as much as RM3160. For the promotion, the promotion will be done
online and offline advertisement. Indoor promotion, company and product information as
well as the service will be listed in detail. Through that promotion and advertisement, all
people will know about our Enamour product.

CHAPTER 4: PRODUCTION / OPERATIONAL STRATEGY

DESCRIPTION OF COMPANY’S PRODUCTION / OPERATION

• Shoe Making Process

A footwear company has mainly four departments in which a progressive route is

followed for producing finished shoes. These are clicking or cutting department, closing or
machining department, lasting & making department, finishing department and the shoe
room.

• Clicking or Cutting Department

In this department, the top part of the shoe or the "upper" is made. The clicking
operative is given skins of leather, mostly cow leather but not restricted to this type of
leather. Using metal strip knives, the worker cuts out pieces of various shapes that will
take the form of "uppers". This operation needs a high level of skill as the expensive
leather has to be wasted at the minimum level possible. Leather may also have various
defects on the surface such as barbed wire scratches which needs to be avoided, so that
they are not used for the uppers.

• Closing or Machining Department

Here the component pieces are sewn together by highly skilled machinists so as to
produce the completed upper. The work is divided in stages. In early stages, the pieces are
sewn together on the flat machine. In the later stages, when the upper is no longer flat and
has become three-dimensional, the machine called post machine is used. The sewing
surface of the machine is elevated on a post to enable the operative to sew the three

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dimensional upper. Various edge treatments are also done onto the leather for giving an
attractive look to the finished upper. At this stage only, the eyelets are also inserted in
order to accommodate the laces in the finished shoes.

• Lasting & Making Department

The completed uppers are molded into a shape of foot with the help of a "Last".
Last is a plastic shape that simulates the foot shape. It is later removed from the finished
shoe to be used further in making other shoes. Firstly, an insole to the bottom of the last is
attached. It is only a temporary attachment. Sometimes, mostly when welted shoes are
manufactured, the insole has a rib attached to its under edge. The upper is stretched and
molded over the last and attached to the insole rib. After the procedure completes, a
"lasted shoe" is obtained. Now, the welt- a strip of leather or plastic- is sewn onto the shoe
through the rib. The upper and all the surplus material is trimmed off the seam. The sole is
then attached to the welt and both are stitched together. The heel is then attached which
completes the "making" of the shoe. That was the process for heeled shoes. When a flat
shoe is in the making, there are considerably fewer operations. The insoles in this case is
flat and when the uppers are 'lasted', they are glued down to the surface of the inner side of
the insole. The part of the upper, that is glued down, is then roughed with a wire brush to
take off the smooth finish of the leather. This is done because rough surface absorbs glue
to give a stronger bond. The soles are usually cut, finished and prepared as a separate
component so that when they are glued to the lasted upper, the result is a complete and
finished shoe. Soles can also be pre-molded as a separate component out of various
synthetic materials and again glued to the lasted upper to complete the shoe.

• Finishing Department and the Shoe Room

The finishing of a shoe depends on the material used for making it. If made of
leather, the sole edge and heel are trimmed and buffed to give a smooth finish. To give
them an attractive finish and to ensure that the edge is waterproof, they are stained,
polished and waxed. The bottom of the sole is often lightly buffed, stained and polished
and different types of patterns are marked on the surface to give it a craft finished look. A
"finished shoe" has now been made.

For shoe room operation, an internal sock is fitted into shoe which can be of any
length- full, half or quarter. They usually have the manufacturer’s details or a brand name
wherever applicable. Depending on the materials used for the uppers, they are then

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cleaned, polished and sprayed. Laces and batik and any tags that might have to be attached
to the shoes, such as shoe care instructions, are also attached. The shoes, at last, get
packaged in boxes.

MANUFACTURING / PRODUCTION PROCESS WORK FLOW (FLOW CHART)

Materials are stored in the storage area or warehouse.

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Physical plant –site plan and layout

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Clicking or Cutting
Toilet
Department

Meeting
Closing or Room
Machining Office
Department

Lasting & Making

Department

Finishing
Department and the Store
Shoe Room

Showroom and Customer Waiting Room

MACHINERY AND EQUIPMENT

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 I. Sewing Machine for Leather

II. Leather Machines for Cutting, Skiving, Splitting

III. Sewing Machines Littleway Construction & Repair

IV. Machines for Finishing, Sanding, Polishing

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V. Die Cutting Machine for Leather

CAPACITY PLANNING-OUTPUT IN UNITS/ OPERATIONS TIME

Enamour Collection has 2 people in operation department. The capacity planning
is as shown below. The working hour is 8 hours. The amount that this company
expect is 10 shoes in 8 hours.

10 UNITS/8 HOURS
and
2 UNITS / HOUR

MATERIAL PLANNING- RAW MATERIALS

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 Item Qty per item Cost per unit Total (RM)

Nylon thread 500 unit 1.00 500.00

500.00
Batik fabric 100 roles 5.00

300.00
Needles 1000 unit 0.30

100.00
Rubber 100 unit 1.00

200.00
Glue 100 unit 2.00

Leather 100unit 13.60 1360.00

Packaging Material 150 1.50 225.00

Total 25.40 3135.00

NAME AND SUPPLIER OF RAW MATERIALS

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 Item Supplier
SINGER (M) SDN BHD
Machinery Lot 34 & 36, 3rd Floor, Jalan Tago 9, Taman
Perindustrian Tago, Batu 11, Sri Damansara,
52200 Kuala Lumpur
Mega KSL Trading
7A, Jalan Jejaka 3, Taman Maluri, 55100,
Leather Kuala Lumpur, 55100 Kuala Lumpur, Federal
Territory of Kuala Lumpur
Kong Brothers Enterprise
No.5, Jalan BS 7/18, Kawasan Perindustrian
Shoes Material Bukit Serdang, Seksyen 7, 43300 Seri
Kembangan, Selangor

Titron Rubber Industries (M) Sdn Bhd

Rubber Lot 371, Banting, Malaysia, Jalan Sungai
Buaya, 42700 Banting, Selangor
1. Master Wan Batik
No, 2, Jalan Ambar 1, Taman Ambar, 43800
Dengkil, Selangor
Batik Fabric 2. Jentayu Batik House, Saujana Utama,
Selangor, Malaysia
SU Mall, Persiaran Saujana 4, 47000 Sungai
Buloh, Selangor

Packaging Material Mabuchi Package (M) Sdn Bhd

(Box and plastic bag)  Lot 6, 40000, Shah Alam, Malaysia, Jalan
Beremban 15/12, Seksyen 15, 40000 Shah
Alam, Selangor
CHAPTER 5 – ORGANIZATIONAL STRATEGY
ROLE AND RESPONSIBILITIES MEMBERS OF ORGANIZATION.

31
 POSITION NAME ROLES AND RESPONSIBILITIES
1- Give the command over the
invention and control all the
Managing Nur Afifah Ainaa Binti
departments.
Director Idris
2- Maintain the suppliers to ensure
the continuity of good relations to
them.
3- The Head of the company who
actually control and implement all
partners’ idea about the business.
1- Responsibility for managing both
General Manager revenue and cost element which is
Nur Afiqah Binti Idris
Enamour income statement
2- Plans, implement and control the
overall management of the admin,
marketing, operation and financial for
business making shoes process.
3- Determine the organizational goal
which is to make the business
operation going well and sustain in
the future.
4-Set policies and operations for the
business. Also create and maintain
budgets for the making shoes process
and coordinate with local
management Administrative in the
company to evaluate employees,
company performance and
efficiencies of busineS

Marketing 1- Make marketing strategy to

Manager promote which is doing the
Nur Fatinah Aqilah Binti

32
 Idris advertisement for Enamour and
sales the services, this also include
with market research to identify
the target customers that will buy
our product.
2- Develops a marketing plan for
business that set out with
marketing objective for our
product which is company goal to
attract customer to buy our shoes
product and generate many profit.
3- Key roles of marketing are
advertising and promotion to make
sure the citizens know that our
services are exist in the market.
1- Responsible to manage accounting
Financial report likes cash inflow and
Ras Afifa Adila Binti Idris
Manager outflow of business.
2- Make sure the loan and interest to
set up business is up on time to
avoid on the date.
3- Preparing the profit and loss
statement of the business in every
month and do the balance sheet for
the next month’s account also
annual budget to know the sales of
shoes.
4- Estimate all the expenses of
company needed

1- Responsible to prepare a bill of any

Operation material require for the making
Nurul Faziqah Binti Azhar
Manager shoes process such as the sewing

33
 machine, raw material or the
process of cutting and how the
process going well.
2- Maintain procedure for
implementing plan that make sure
the operation of shoes product
follow the rule of making process.
3- Responsible to overseas the
department in our company
Involved directly in production shoes
Operation process such as cutting, stitching,
Two workers
workers bottom preparation and assembly.
1- Determines implementing
marketing strategies, analyzing
Sales Manager Fathin Nabila Izzati Bt
trends and results of business
Zainal Iskandar
Enamour

2-Establishes sales objectives by

forecasting and developing annual
sales of Enamour.

2- Implements sales programs by

developing field sales action plans of
Enamour.

3-Maintains sales volume of shoes,

product mix, and selling price by
keeping current with supply and
demand, changing trends, economic
indicators, and competitors.

Head of Human Dg Azlina Binti Mazlan 1- Maintains the work structure by

Resources updating job requirements and job
descriptions for all positions.

2-Maintains organization staff by

establishing a recruiting, testing, and
34
 interviewing program; counseling
managers on candidate selection;
conducting and analyzing exit
interviews; recommending changes.

3- Prepares employees for

assignments by establishing and
conducting orientation and training
programs.

4- Maintains management guidelines

by preparing, updating, and
recommending human resource
policies and procedures

ORGANIZATION CHART

35
 Managing Director
(Nur AFifah Ainaa
Binti Idris)

General Manager
(Nur Afiqah Bt Idris)

Head of Finance Head of Marketing Head of Sales Head of Operation Head of Human
(Ras Afifa Adila Bt (Nur Fatinah Aqilah Bt (Fathin Nabila Bt (Nurul Faziqah Bt Resources
Idris) Idris) Zainal Iskandar) Azhar) (Dg Azlina Bt Mazlan)

LIST OF ADMINISTRATIVE STAFF

36
 POSITION NO. OF PERSONNELS

Managing Director 1

General Manager (CEO) 1

Finance Manager 1

Marketing Manager 1

Sales Manager 1

Operation Manager 1

Human Resource Manager 1

General operation workers 2

TOTAL STAFF 9

37
CHAPTER 6 : FINANCIAL PLAN

1. FORECASTED SALES

Month Sales
Units RM120/unit
January 100 RM12000
February 120 RM24000
March 150 RM18000
April 170 RM20400
May 180 RM21600
June 150 RM18000
July 140 RM16800
August 130 RM15600
September 150 RM18000
October 160 RM19200
November 190 RM22800
December 200 RM24000
Year 1 Total Sales 1840 units RM220800
Year 2 Total Sales 1840 units RM220800 x 10% (Mark up)
= RM242880

Year 3 Total Sales 1840 units Rm242880 x 10% (Mark up)

= RM267168

38
 2. FORCASTED PURCHASES

MATERIALS REQUIREMENT

Item Quantity per item Cost per unit Total (RM)

Nylon thread 500 unit 1.00 500.00
Batik fabric 100 rolls 5.00 500.00
Needles 1000 unit 0.30 300.00
Rubber 100 unit 1.00 100.00
Glue 100 unit 1.50 150.00
Leather 100 unit 13.60 1360.00
Packaging from 150 unit 1.50 225.00
supplier
Total 23.90 3135.00

3. PROJECTED COST AND FINANCING

OPERATIONS COST (monthly budget)

TYPE TOTAL COST

ELECTRIC & WI-FI RM800
WATER RM200
TELEPHONE RM50
MACHINERY MAINTENANCE RM300
Total RM 1350

Salaries EPF (11%) SOCSO (2%)

Initial members (2300 x 7) (11% x 2300)7 (2% x 2300)7
(7 person) = RM 16,100 =RM 1771 =RM 3220
Operation workers (1200 x 2) (11% x 1200)2 (2% x 1200)
( 2 person) =RM 2400 =RM 264 = RM 48
Total 18,500 2,035 3,268

39
Working capital
-Salaries RM 18,500
-EPF RM 2,035
-SOCSO RM 3,268
RM 1,600 25,403
-rent building

Other expenses
-utility expenses
(800+200) RM 1000

-License RM50

- registration of company RM 30
RM300 RM 1380
-maintenance cost

40
 4. DEPRICIATION OF FIXED COST
Type of asset: Van
Cost of asset: RM 25,000.00
Economic life: 5 years
Method: Straight line

Year Annual Accumulated Book value

depreciation depreciation
0 0 0 25,000.00
1 5,000.00 5,000.00 20,000.00
2 5,000.00 10,000.00 15,000.00
3 5,000.00 10,000.00 10,000.00
4 5,000.00 10,000.00 5,000.00
5 5,000.00 10,000.00 0

Office equipment (including sewing machine)

Actual price = RM10200
Economic life = 3 years
Method : straight line

Years Yearly depreciation Total depreciation Book value

0 0 10200
1 3400 3400 6800
2 3400 6800 3400
3 3400 10200 0

41
 5. LOAN AND HIRE PURCHASE REPAYMENT SCHEDULE

Source of finance

Own capital (partnership) (10000 x 6) RM60,000

Loans-SME Corp RM 20,000

Hire purchase-Van RM 25,000

Year Interest Principal Payment Balance

0 0 0 0 20,000.00
1 1,600.00 4,000.00 5,600.00 16,000.00
2 1,600.00 4,000.00 5,600.00 12,000.00
3 1,600.00 4,000.00 5,600.00 8,000.00
4 1,600.00 4,000.00 5,600.00 4,000.00
5 1,600.00 4,000.00 5,600.00 0

Hire purchase of van

Cost of van: RM25,000.00

Down payment: RM5,000.00
Loan amount: RM20,000.00
Loan period: 5years
Interest rate: 3% Method : Flat(annually)

Year Interest Principal Payment Balance

0 0 0 0 20,000.00
1 1,600.00 4,000.00 5,600.00 16,000.00
2 1,600.00 4,000.00 5,600.00 12,000.00
3 1,600.00 4,000.00 5,600.00 8,000.00
4 1,600.00 4,000.00 5,600.00 4,000.00
5 1,600.00 4,000.00 5,600.00 0

6. PRO FORMA INCOME STATEMENT

RM RM
Net Sales 220800
(-) Cost of Goods Sold

42
 Materials (3135 x 12) 37,620
Registration of company 30
Licensing Payment 50
Total Cost of Goods Sold (37,700)
Gross Profit 183,100

Less : Expenses
Salaries:- Initial members (16,100 x 12) 193200
Operation workers (2,400 x 12) 28800
EPF :- Initial members (1,771 x 12) 21252
Operation workers (264 x 12) 3168
SOCSO :- Initial members (3,220 x 12) 38, 640
Operation workers ( 48 x 12) 576
Sales & Marketing Costs (as per chapter 4) 3300
Rent ( RM1600 x 12) 19200
Utilities ((RM800 + RM200 + RM50) x 12) 12600
Depreciation (RM5000 + RM3400) 8400
Other Overhead Costs (Maintenance = RM300 x 12) 3600
Transportation cost on delivery 540 (333,276)
(150,176)
Add : Revenue
Business Income 176,824
Income from delivery services(736x3) 2208
Net income before tax 28,856

Taxes (5194.08)
Net income 23,661.92

7. Taxes Incur
On first RM 500,000
(28,856 X 18%) RM 5194.08

43
8. PRO FORMA FINANCIAL POSITION
ASSETS RM RM
Current Assets
Cash 23,053
Bank 14,300
Net accounts receivable 3,000
Inventory 4,200
Prepaid rent expenses 4,800
  Total Current Assets 39,353
   
Fixed Assets

Plant & equipment (net) 10,200

Motor Vehicle 25,000
  Total Net Fixed Assets 35,200
TOTAL ASSETS 84,553
   
LIABILITIES
Current Liabilities
Accounts payable (Singer) 2737
Account payable (supplier) 2900
Tax Payables 5194.08
Accrued utilities bills 200
Other accruals and payables 1250
  Total Current Liabilities 12,281.08
   
Long-term Liabilities
Other long-term liabilities (SME) 20,000
Hire purchase of van 20,000
  Total Long-term Liabilities 40,000
   
SHAREHOLDERS' EQUITY
Retained earnings 23,661.92
General Reserve 8,610
  Total Shareholders' Equity 32,271.92
TOTAL LIABILITIES & EQUITY 84,553

44
BREAK EVEN ANALYSIS

FIXED COST RM
Salaries of workers (18, 500 x 12) 222,000
EPF (2,035 x 12) 24,420
SOCSO (3,268 x 12) 39,216
Rent ( RM1600 x 12) 19, 200
Depreciation 8, 400
TOTAL 313,236

RM per unit (1840

VARIABLE COST RM
units)
Materials (RM 3135 X 12) 37, 620 20.45
Utilities ((RM800 + RM200 + RM50) x 12) 12, 600 6.85
Sales & Marketing cost 3,300 1.79
Machinery Maintenance 3, 600 1.96
TOTAL 58, 920 31.05

In unit (year) = total fixed cost

Price – variable cost

= RM 313,236
RM 120- RM 31.05

=3521 units

In RM = 3521 units x RM120

= RM 422, 520

45
SOURCES AND APPLICATION OF FUNDS
Capital Funding
A. Fund from initial members of the company
Ras Afifa Adila binti Rahim (RM 8572)
Nur Adlihah Syafiqah binti Safuan (RM 8572)
Nurul Faziqah binti Azhar (RM 8572)
Nur Nadia Sharmila binti Esuwan (RM 8572)
Fathin Nabila Izzati binti Zainal (RM 8572)
Iskandar
Dg Azlina Binti Mazlan (RM 8572)
Nur Fatinah Aqilah Binti Idris (RM 8572)

B. Fund from SME Bank

Rm 20 000

46
 CHAPTER 7 : ASSESSMENT OF RISKS

THE SWOT ANALYSIS

Our SWOT analysis will provide you with the comprehensive details that we need in order
to determine the strengths, weaknesses, opportunities, and threats that our business will
face as we develop or expand our business operations.

Strengths
 Highly experienced owner operator
 Ability to sell products online
 Limited start up risk
 Limited competition in the Shah Alam area
 High barrier to entry
 Highly visible website
Opportunities
 Continued expansion for online sales
 Ability to develop additional stores
 Development of proprietary products
 Development of wholesale distribution
relationship
 Affiliate relation with related vendors

Weaknesses Threats
 Competitors can offer similar products  Changes in regulations can impact the
quickly business
 Limited start up costs  Products are already sold by major
 High transportation cost competitors
 Limited flexibility in pricing  Insurance costs are continually increasing
 Increases in price inputs can cause upward
pricing

47
ALTERNATIVE COURSES OF ACTION
Analysis of the problem
The quality of our shoes is very much important. The customers will convince if the
products have meet the customers standards, needs, and satisfactions. Therefore, if the
quality of the product is zero defect the customer will tend to demand and order from us.
The more demand the more the sales of the company.

Alternatives course of actions

I. There should be a proper training for the production, quality assurance and quality
control team.

Advantage Disadvantage

 Zero defects of the products are  Training program will be costly

possible to happen
 Production will be more productive

II. Establish accurate guiding principles in production process.

Advantage Disadvantage

 There would be no return product  Staffs will have difficulties in

understanding new procedures.

CONTINGENCY PLANS
 Having an extensive selection of shoes because it will drive sales.
 Transfer spare cash to safest possible banks
 Verify how much cash is actually needed in hand
 Consolidate the financial statement
 Introduce flexible payments and delivery arrangement with customers and
suppliers
 Amend existing contract to meet new legal requirements

48
CHAPTER 8: CONCLUSION

Enamour Collection is a retail store that specializes in creating and designing batik
shoes. We use innovative ways to design, sell, and attract customers to purchase Enamour
Collection. In addition, we use interactive promotional strategies to gain customer interest
and sustain customer loyalty. We are dedicated to provide our customers with high quality
shoes. Our commitment to create comfortable, nice and affordable batik shoes for our
customers. We will ensure that all our customers are given first class treatment whenever
they visit our store.

Other than that, the values that Enamour Collection strives to uphold are respect,
time management, and family responsibility. We strive for excellence, no matter how big
or small relevant problems are. Determination and commitment are two very important
factors that reflects Enamour Collection image. Our company will conduct a multi-channel
marketing campaign that includes heavy reliance on print media, direct mailing, web-
based advertising, and strategic alliances with customer groups to make people aware of
our unique products. We are aware of that there are several large and small chains of shoe
retail outlets all around Seksyen 7, Shah Alam, which is why we spent time and resources
to a thorough feasibility studies and market survey so as to be well positioned to
favourably compete with all our competitors.

49