FACULTY OF BUSINESS, ECONOMICS AND ACCOUNTANCY

UNIVERSITI MALAYSIA SABAH

BB6023 - ENTREPRENEURSHIP PROJECT MANAGEMENT

SEMESTER 3 - 2020/2021

ASSIGNMENT GROUP :
BUSINESS PLAN

PREPARE TO:
DR. SALMAH TOPIMIN

PREPARE BY:
No. NAME MATRIC NO.
1 ADITERENILAH UNAR MB2022241T
2 FAZRIN NIZZA BINTI MOHD AZRI MB2022242T
3 MOHANRAJ SUPPARAMANIAM MB2022264T
4 NOORIFFA FIFFY BINTI ISMAR MB2022239T
5 SONG ZONG LU MB1912064A

SUBMISSION DATE:

19.09.2021
 ASSESSMENT FORM- BUSINESS PLAN
BB6023 ENTREPRENEURSHIP PROJECT MANAGEMENT
SEMESTER 3, 2020/2021

No. Name Matric Number

1 ADITERENILAH UNAR MB2022241T
2 FAZRIN NIZZA BINTI MOHD AZRI MB2022242T
3 MOHANRAJ SUPPARAMANIAM MB2022264T
4 NOORIFFA FIFFY BINTI ISMAR MB2022239T
5 SONG ZONG LU MB1912064A

BREAKDOWN FOR EVALUATION

NO. EVALUATION CRITERIA LEVEL ACHIEVED MARKS
CRITERIA

Ability to provide cover page that High (4-5)

Cover page and Table of represent the image of the proposed
1 Contents business as well as to prepare a Medium (3)
comprehensive table of contents that
(5 marks) reflect the business plan Low (1-2)

Ability to provide the overview of High (8-10)

the business plan by summarising
Executive Summary
2 all key points from organisational, Medium (6-7)
marketing, operational and
(10 marks)
financial plan. Low (1-5)

Ability to explain clearly the

High (8-10)
management aspect of the proposed
business, including the personnel
Organisational plan Medium (6-7)
3 planning, team management,
(10 marks)
organisational structure and strategic
Low (1-5)
management issues.

Ability to explain the summary of the High (16-20)

business position within the industry
Marketing plan by taking into account all marketing Medium (10-15)
4
aspects such as market and industry
(20 marks) analysis, competitors analysis and Low (1-9)
marketing strategies.

Ability to explain the operational High (16-20)

aspects of the proposed business,
Operational plan
including the choice of location, the Medium (10-15)
5
operational process, lay out,
(20 marks)
operational requirements and Low (1-9)
suppliers.

Ability to provide a solid financial High (16-20)

information of the proposed business,
Financial Plan
including the total start-up needed, the Medium (10-15)
6
availability of funding sources, the
(20 marks)
financial projections and the financial Low (1-9)
analysis.
 SHINE PRINTING

Business Plan
13 September 2021
TABLE OF CONTENT

CONTENT PAGES
1.0 SUMMARY EXECUTIVE 1-2

2.0 ORANIZATIONAL PLAN 3-8

2.1 Vision, Mission, Objectives and Company Logo 3
2.1.1 Vision 3
2.1.2 Mission 3
2.1.3 Objectives 3
2.1.4 Company Logo 3
2.2 Description of Tasks and Responsibilities in Management Team 4
2.3 Manpower Requirement Planning 5
2.4 Organizational Structure 5
2.5 Organizational Budget 6
2.5.1 Human Resource 6
2.5.2 Fixed Costs 7
2.5.3 Variable Cost 8

3.0 MARKETING PLAN 9 - 17

3.1 Services Description 9
3.2 Target Market 9
3.3 Market Size 10
3.4 Competitors 11
3.5 Market Share 12
3.6 Sales Forecast 13 - 15
3.7 Marketing Strategy 16
3.8 Marketing Budget 17

4.0 OPERATIONAL PLAN 18 - 25

4.1 Operation Flow Chart 18
4.2 Production Schedule 19
4.3 Material Requirement Planning 19 - 20
4.4 Manpower Requirements Planning 20
4.5 Machine and Equipment 21
4.6 Operation Layout 22
 4.7 Business Location 23
4.8 Operation Cost 24
4.8.1 Direct Material Costs 24
4.8.2 Direct Labour Costs 24
4.8.3 Overhead Costs 24
4.9 Operation Budget 25
4.9.1 Fixed Costs 25
4.9.2 Variable Costs 25

5.0 FINANCIAL PLAN 26 - 36

5.1 Project Implementation Cost 26
5.1.1 Capital Expenditure 26
5.1.2 Working Capital Expenditure 26
5.1.3 Other Expenditure 26
5.1.4 Contingency Cost 27
5.2 Source of Finance Schedule 27
5.3 Pro Forma Cash Flow 28
5.4 Pro Forma Income Statement 29
5.5 Pro Forma Balance Sheet 30
5.5.1 Depreciation Schedule 30
5.5.2 Pro Forma Balance Sheet 31 - 33
5.6 Financial Analysis 34
5.6.1 Efficiency Ratios 34
5.6.2 Profitability Ratios 34
5.6.3 Break Even Analysis 35 - 36

APPENDICES 37 - 38
1.0 EXECUTIVE SUMMARY
Our mission
Shine Printing is provide convenient, efficient and high-quality printing services to
make all customers satisfied. To the diversify business scope towards dynamic
industries, create economic value, maintain good relationships with customers,
enhance employee pride and became a well-known company.

Company and management

Shine Printing will be available in 1 Borneo Hypermall where people can walk in to
our store. Besides, we also provide automatic printing machine in particular area
such as in Universiti Malaysia Sabah, in the office area and other potential areas. To
ensure this business running smoothly, we created an apps for our services so that
people can reach us easily.

Our service
Basically, our main services is providing a printing services where can be easily
reached by people walk in to our shop, through our apps, automatic printing
machine including the delivery services.

The market
Our market research shown that existing of printing business in Kota Kinabalu area is
about 19 business. Within this number, we ensure that Shine Printing can grow and
be the top printing service in Kota Kinabalu as we provide our main value in this
business.

Our competitive advantages

In fact, our targeted customer is among the students, staff officer and everyone who
is demand for this services. Since this pandemic situation occurred, its limit our
movement and most of us are staying at home. Students need to go for online
classes while staff officer also can’t go to the office and need to work from home.
Apart from that, they will definitely go for our printing services to get their things
done as the stationary store are still close as well as other printing shop.

1
Financial projections
Our sales projections for the first year are RM427,690.00 with estimation of 15% of
growth rate per year during the first three years of business.
For staff’s salaries, it will cost us about RM7,336.00. Since we are start-up business,
we only have 5 staffs included our rider and we will hire more when our financial is
already secured.

Start-up financing requirements

For our first year, we seek to obtain about RM130,279.85 which is for our financing
requirements. These includes our own personal cash as well as external sources.

2
2.0 ORGANIZATIONAL PLAN
2.1 Vision, Mission, Objectives and Company Logo

2.1.1 Vision
Continuously innovate products and services, become the company that can provide
customers with better printing services.

2.1.2 Mission
i. Provide convenient, efficient and high-quality printing services to make all
customers satisfied.
ii. To the diversify business scope towards dynamic industries， create economic
value, maintain good relationships with customers, enhance employee pride
and became a well-known company.

2.1.3 Objectives
 Become a successful, dynamic and competitive local company.
 Satisfy customer needs with high-quality and efficient service.
 Provide employment opportunities for young people and actively participate
in public welfare activities.

2.1.4 Company Logo

Picture 1: Shine Printing’s Logo

3
2.2 Description Of Tasks and Responsibilities in Management Team
Shine Printing's mission and responsibility management is to assist employees in
fulfilling their responsibilities to achieve their goals and objectives. Every employee in
our company has their own roles and functions to become an effective team.

No. Position Task

1. Manager  Research and plan strategies for business development.
 Provide terms and conditions within the company to
achieve the company's vision and mission.
 Identify, plan and implement human resource
management. (Recruitment, training and payment of
employees, etc.)
2. Finance  Prepare all reports, including financial statements,
Clerk business activity reports and business forecasts.
 Formulate the company's annual, cost, profit and other
related financial indicators plan.
 Supervise financial reports and budgets, and make
timely adjustments and controls based on actual
operating conditions.
 Check financial details to avoid company losses.
3. Marketing  Conduct market research and customer surveys,
Clerk formulate marketing strategies and plans.
 Constantly explore the market, innovate products and
services, and meet the ever-changing needs of
customers.
 Monitor all marketing activities and plan marketing
budgets.
4. Operation Clerk
 Maintain the company's daily operations.
 Solve after-sales problems and communicate with
customers.
Delivery man
 Familiar with traffic routes (design the best route), and
proficiently drive vehicles.
 Carry out the transportation and delivery of goods.

4
2.3 Manpower Requirement Planning
We prepare human resource planning for 3 years of business operation. Our
business will have only 5 workers at the beginning of the first year, and will add
more workers in the second and third year to improve business performance. The
reason for adding more workers is to help them control the organization. The
company's main personnel are composed of managers, marketing department,
finance department and operation department.

No. Position/Role Year 1 Year 2 Year 3

1. Manager 1 1 1
2. Finance clerk 1 1 1
3. Marketing clerk 1 2 2
4. Operation clerks 2 3 4
Total 5 7 8

2.4 Organizational Structure

Figure 1: Shine Printing’s Organizational Chart

5
 2.5 Organizational Budget
2.5.1 Human Resource
Year 1

Position No. Salary EPF SOCSO Medical Total Total

(RM) 12% 2% (RM) (monthly) (annually)
(RM) (RM)
Manager 1 2,000 240 40 200 1,720 20,640
Finance 1 1,700 204 34 200 1,662 19,944
Clerk
Marketing 1 1,700 204 34 200 1,662 19,944
Clerk
Operation 1 1,100 132 22 200 1,146 13,752
Clerk
Delivery 1 1,100 132 22 200 1,146 13,752
man
TOTAL 5 7,600 912 152 1,000 7,336 88,032

Year 2
Position No. Salary EPF SOCSO Medical Total Total
(RM) 12% 2% (RM) (monthly) (annually)
(RM) (RM)
Manager 1 2,200 264 44 200 2,092 25,104
Finance 1 1,900 228 38 200 1,834 22,008
Clerk
Marketing 2 3,800 456 76 400 3,668 44,016
Clerk
Operation 1 1,300 156 26 200 1,318 15,816
Clerk
Delivery 2 2,600 312 52 400 2,636 31,632
man
TOTAL 7 11,800 1,416 236 1,400 11,548 138,576

Year 3
Position No. Salary EPF SOCSO Medical Total Total
(RM) 12% 2% (RM) (monthly) (annually)
(RM) (RM)
Manager 1 2,400 288 48 200 2,264 27,168
Finance 1 2,100 252 42 200 1,996 23,952
Clerk
Marketing 2 4,200 504 84 400 4,012 48,144
Clerk
Operation 1 1,500 180 30 200 1,490 17,880
Clerk
Delivery 3 4,500 540 90 600 4,470 53,640
man
TOTAL 8 14,700 1,764 294 1,600 14,232 170,784

6
2.5.2 Fixed Costs

No. Item Total cost (RM)

1. Office Furniture 6,352.00
- Table: RM180 x 5 = RM900
- Chair: RM69 x 5 = RM345
- Signboard = RM324
- Multi-line telephone = RM240
- WiFi (Unifi) = RM129
- Air-conditioner = RM799
- Office Chair = RM185 x 5 = RM925
- Office table = RM400 x 5 = RM2,000
- Reception counter = RM690
2. Computer Equipment 7,388.00
- Printer Multi-Purpose tray: RM1,888 x 1 = RM1,888
- Computer: RM1,100 x 5 = RM5,500
3. Renovation 4,500.00
4. Vehicle 8,280.00
5. Intangible assets
- company logo 250.00
6. Rent 2,500.00
7. License 25.00
8. Vehicle Insurance 178.95
9. Registration fees 130.00
10. Vehicle roadtax 52.00
11. Deposit 8,000.00
- Utility = RM500
- Premises = 7,500
Total 37,655.95

7
2.5.3 Variable Cost

No. Item Total cost (RM)

1. Utility cost 1,800
- Communication tool = RM500
- Water = RM300
- Electricity = RM1,000
Total 1,800

8
3.0 MARKETING PLAN
3.1 Services Description
Shine Printing is one of the services that serve a printing service to the targeted
people, especially during this pandemic. These services will serve our customers with
the printing services in our shop and get it done through our apps. In addition, Shine
Printing also provides our customers with the available printing machine in particular
places so that everyone can reach our services anytime. We provide delivery services
to attract our customers to Shine Printing.
Shine Printing is offering five types of services to customers that would come.
There are document printing, photocopy, scanning and binding any document. For
document printing, we have two types which are black and white and the colour one.
For the binding, we have five types of size comb ring which is 2mm, 10mm, 14mm,
22mm, and 28mm. We also have binding using tape. These always use to combine
the document into a file or book.

3.2 Target Market

Since Shine Printing is located at 1 Borneo Sepanggar, we are surrounded by many
places near us. The places near to us are Universiti Malaysia Sabah, Alamesra, Sabah
Federal Government, Menara Kastam Sabah, Tower A, Tower B and Prince Tower
(Picture 1).
a) Demographical
For this demographical, we target students at UMS and working people that
work at 1 Borneo Hypermall, Alamesra, Sabah Federal Government and
Menara Kastam Sabah. We were targeting students because they have a
demand for these services. For example, they need to print or photocopy
their assignment, final year project, notes, slides and many else. For the
employees, we consume that their machine printer was broken or something
else.

b) Geographical
This geographical target market focuses on a resident at Tower A, Tower B
and Prince Tower because they were nearest to 1 Borneo Hypermall. Besides
that, we also target villagers near this area because the village is pretty
significant to have many people stay there.

9
3.3 Market Size
From the target market, Shine Printing determine the market size by the statistic.
From Picture 2, we can see that the Kota Kinabalu population now is in 565,551. This
is a huge number that can attract more people come to Shine Printing. Our most
target market is students Universiti Malaysia Sabah with many students that every
student admission it takes until 4,972 new students (Picture 4, please refer at
appendices). Other than that, UMS employees also have 2,934 employees in total.
From Picture 1, it showed there have several of the village which is Kampung Delima,
Kampung Pulau Penampang, Kampung Suang Parai, Kampung Brunai, and the else.
We believe that many people will use our services with this population, especially the
Universiti Malaysia Sabah students.

10
3.4 Competitors
CRITICAL UNIPRINT,ALAMESRA BINGO EDGE. ALAMESRA
ELEMENTS
Unique selling Effective marketing that using Motivate customer behaviour and
proposition properly social media and websites. buying decisions.

Value to Customers get professional services Customers have many ways to fulfil
prospective their needs.
customers
Position in Top Middle
market
Marketing Mix

Product 1. Printing Services 1. Printing Services

2. Binding 2. Photocopy
3. Certificate Folders 3. Binding
4. Rubber Stamps & Flash Stamps 4. Rubber Stamps & Flash Stamps
5. Business Name Card 5. Signboard, banner & flyers
Price The mid-range price depends on the The mid-range price depends on the
service service
Place Attract customers with websites and Customer relationship that can motivate
effective marketing. the customer.
Promotion Websites and social media Social media

Competitor’s SWOT Analysis

Strength Good management marketing and Having a good relationship with the
operation. customer until motivate customer to
buy
Weakness Does not have really good customer The marketing on social media does not
relationship and communication. operate well.
Opportunity Strategic place which is near to Strategic place which is near to
university, college, working place university, college, working place and
and resident. resident.
Threats 1. Procedure from the government 1. Procedure from the government
needs to follow, such as MITI. needs to follow, such as MITI.
2. Natural disaster. 2. Natural disaster.

11
3.5 Market Share
a) Innovative Technology
One technique for increasing a Shine Printing's market share is through innovation.
When a Shine Printing introduces a new technology that its competitors have yet to
provide, consumers who want to possess it to buy it from that company, even if they
previously conducted business with a competitor. Many of such clients become
devoted customers, increasing the Shine Printing's market share while decreasing the
company transferred.

b) Customer Satisfaction
Shine Printing maintain our existing market share through building customer
connections, which prevent current consumers from defecting when a competitor
launches a hot new offer. Even better, Shine Printing may increase market share
with the same easy strategy because pleased customers usually tell their friends and
family about their great experience, which leads to new consumers. Thus, gaining
market share through word of mouth boosts a Shine Printing's revenues without
increasing marketing costs.

c) Employees with Special Skills

Shine Printing with the largest market share in our respective sectors nearly always
have the most talented and devoted workers. Bringing in the finest workers lowers
attrition and training costs, allowing businesses to dedicate more resources to our
core strengths. In addition, offering competitive pay and perks is a tried and true
way to succeed.

12
 3.6 Sales Forecast
Services / Product Jan 5 Feb 5 Mar 5 Apr 5 May 5 June 5
Price per Unit 0.50 0.50 0.50 0.50 0.50 0.50
Document Printing Unit Sold 12,600 12,400 12,500 12,300 12,800 12,300
(Black and White) Total (RM) 6,300 6,200 6,250 6,150 6,400 6,150
Price per Unit 0.80 0.80 0.80 0.80 0.80 0.80
Document Printing Unit Sold 12,600 12,400 12,500 12,300 12,800 12,300
(Color) Total (RM) 10,080 9,920 10,000 9,840 10,240 9,840
Document Photocopy Price per Unit 0.30 0.30 0.30 0.30 0.30 0.30
Unit Sold 15,600 15,400 15,500 15,300 15,800 13,300
Total (RM) 4,680 4,620 4,650 4,590 4,740 3,990
Laminating Price per Unit 3.00 3.00 3.00 3.00 3.00 3.00
Unit Sold 500 480 480 370 580 150
Total (RM) 1,500 1,440 1,440 1,110 1,740 450
Scanning Price per Unit 0.50 0.50 0.50 0.50 0.50 0.50
Unit Sold 30 30 50 40 60 30
Total (RM) 15 15 25 20 30 15
Binding ( Comb 2mm, Price per Unit 5.00 5.00 5.00 5.00 5.00 5.00
10mm, 14mm) with Unit Sold 1 839 858 858 858 858 858
Cover Total (RM) 9,195 4,290 4,290 4,290 4,290 4,290
Binding ( Comb 22mm, Price per Unit 6.00 6.00 6.00 6.00 6.00 6.00
28mm) with Cover Unit Sold 900 715 715 715 715 715
Total (RM) 5,400 4,290 4,290 4,290 4,290 4,290
Binding Tape with Cover Price per Unit 4.00 4.00 4.00 4.00 4.00 4.00
Unit Sold 1,939 1,073 1,073 1,090 1,073 1,073
Total (RM) 7,756 4,292 4,292 4,360 4,292 4,292
TOTAL MONTHLY (RM) 43,204 35,067 35,067 34,650 35,067 35,067

Table 1: Sales Forecast January until June

13
Services / Product July 5 Aug 5 Sept 5 Oct 5 Nov 5 Dec 5
Price per Unit 0.50 0.50 0.50 0.50 0.50 0.50
Document Printing (Black Unit Sold 12,600 12,400 12,500 12,300 12,800 12,300
and White) Total (RM) 6,300 6,200 6,250 6,150 6,400 6,150
Price per Unit 0.80 0.80 0.80 0.80 0.80 0.80
Document Printing Unit Sold 11,600 12,400 11,300 12,700 11,300 11,300
(Color) Total (RM) 9,280 9,920 9,040 10,160 9,040 9,040
Document Photocopy Price per Unit 0.30 0.30 0.30 0.30 0.30 0.30
Unit Sold 13,600 15,600 15,500 15,300 13,800 13,300
Total (RM) 4,080 4,680 4,650 4,590 4,140 3,990
Laminating Price per Unit 3.00 3.00 3.00 3.00 3.00 3.00
Unit Sold 500 360 480 370 150 250
Total (RM) 1,500 1,080 1,440 1,110 450 750
Scanning Price per Unit 0.50 0.50 0.50 0.50 0.50 0.50
Unit Sold 30 60 50 40 30 30
Total (RM) 15 30 25 20 15 15
Binding ( Comb 2mm, Price per Unit 5.00 5.00 5.00 5.00 5.00 5.00
10mm, 14mm) with Unit Sold 858 160 858 858 858 250
Cover Total (RM) 4,290 800 4,290 4,290 4,290 1,250
Binding Binding ( Comb Price per Unit 6.00 6.00 6.00 6.00 6.00 6.00
22mm, 28mm) with Unit Sold 715 160 715 715 715 250
Cover Total (RM) 4,290 800 4,290 4,290 4,290 1,250
Binding Tape with Cover Price per Unit 4.00 4.00 4.00 4.00 4.00 4.00
Unit Sold 1,090 160 1 073 1 073 1 090 250
Total (RM) 4,360 800 4,292 4,292 4,360 1,250
TOTAL MONTHLY (RM) 35,067 34,650 35,067 35,067 35,067 34,650

Table 2: Sales Forecast July until December

YEAR ANNUAL SALES FORECAST (RM)

1 427,690.00

2 491,843.50

3 565,620.00

14
As we can see table 1, the January, we targeting get many units sold because that
month is the opening of school, examination for university’s students and a new year
special for any corporation or else. For the opening school, they will need to print or
make a copy of a form that they need to fill in. At Universiti Malaysia Sabah (UMS),
this month is usually an examination session. So from this, many students need to
print or copy their notes or slides to study for the exam. Some of them will print the
paperwork since it reaches week 14 that need to submit it properly with binding
properly. For February and March (Table 1), this is semester break for UMS’s
students, but it will still have demand from other customers like the resident of
Tower at 1 Borneo, employees and many else. In April, usually students' UMS will
photocopy their textbook required by their lecturer and module of learning the
lecturer asks to print before the student starts their learning.
On the month of May (Table 1) demand will be stable as the other month and
when it come June and July (Table 2) , demand will decrease a little bit because like
usual this month have two weeks holiday of secondary and primary school. For
August and September (Table 2), there will be many activities that need this service,
which is Independence Day and Malaysian Day. Many schools, corporations or
companies will make any competition, promotion, sales and many else. So they need
many flyers to print and photocopy. In October, it will same as April that students'
UMS will photocopy their textbook required by their lecturer and the module of
learning the lecturer asks them to print. For November and December (Table 2),
demand for this month will come from student UMS and employees. The primary and
secondary school student is on holiday. The employee needs to print documents or
report at the end of the year if they have any problem with their office printer and
do not even have that device.

15
3.7 Marketing Strategy
For the marketing strategy, we will use the 4P’s strategy as our marketing strategy.
The First P is known as a Product. In this product, Shine Printing is offering five types
of services to customers that would come. There are document printing, photocopy,
scanning and binding any document. For document printing, we have two types
which are black and white and the colour one. For the binding, we have five types of
size comb ring which is 2mm,10mm,14mm,22mm, and 28mm. We also have binding
using tape. These always use to combine the document into a file or book. We also
provide delivery services for having attraction and make it easy for our customers.
The second P is the Price. For this price, we were offering the lowest as
possible that better price than the other competitors. This may attract customers to
change or motivate their behaviour to make their decision to choose our services.
However, this lowest price does not mean our quality item is also low. Shine Printing
use high quality that may be satisfying the customer and always come to us.
The third P is Place. For this place, we would like to reach the customer by
setup an outlet with attractive colour, design, and suitable environment. Other than
that, we are the only ones using a mobile application to make an order. We use an
attractive design app from this mobile application and use an easy payment that
uses online banking. This mobile app is convenient to the customer because it is
accessible to them to purchase it from us.
The last P is the Promotion. We want to use vouchers, flyers, bunting, social
media advertising, and vouchers on mobile applications with this promotion. With
this kind of promotion, people will get attracted to Shine Printing services.

16
3.8 Marketing Budget
No. Category Estimate Estimate Estimate
Quantity Month Annual
Expenses (RM) Expenses (RM)
1 Marketing Personnel 1 Person
 Salary 1,700
 Medical 200
 EPF (12%) 204
 SOCSO (2%) 34
= 1,662 19,944
2 Person (Year 2) 44,016
2 Person (Year 3) 48,144
2 Social Media Advertising
 Facebook Advertising 500
(FbAds)
 Google Advertising 1,000 18,000
3 Email Marketing 3 Times 2,400 7,200
(Year)
4 Mobile Application Once a
 Apps Development Year 4,999
 Pay Per Click Advertising 2,400 7,399
5 Promotion
 Flyers 500 pcs 250
 Bunting 10 pcs 580
 Vouchers 50 pcs 136 966
TOTAL (RM) 14,165 53,509

17
4.0 OPERATIONAL PLAN
4.1 Operation flow chart

Order
APP or Website
received/Start
order
received/Start

Preproduction

Ink Image
Management Substrate
Management Preparation

Make Ready
and Printing

Binding and
Cleaning and Finishing
Maintenance

18
4.2 Production Schedule
No. Number of workers (person) Number of productive hours in a day
(hours)
1. 4 10
Total of productive in a day (Hours) 10
Total of productive in a month (Hours) 300 (10Hour x 30 days)

In business operations activities, we have 1 team with 4 employees consisting

of 1 clerks and 3 delivery men. This team will manage all printing, binding
and delivery processes to customers. In terms of capacity planning, our
services are able to complete customer orders within a specified time without
any hindrance. Therefore, we have the ability and capability to do more
service than targeted production.

4.3 Material Requirement Planning

Amount
required 1
day Price Quantity for a Amount
(Box/Pack/ (RM)/ month for a
No. Raw material
Pieces) ( Box/Pack/ (B o x / P a c k / month
Pieces) Pi e c e s ) ( RM)

1. Paper A4 80gsm 1 Sheet 0.005 2000 Sheet 200.00

2. Laminate Paper 1 Sheet 0.18 5 Box 90.00
3. Colour Paper A4 80gsm 1 Sheet 0.01 15 Box 299.70
Binding Comb 1 Pack 15.35
4. 1 Ring 0.15
10mm x 100 ring
Binding Comb 1 Pack 24.90
5. 1 Ring 0.25
2mm x 100 ring
Binding Comb 1 Pack 28.90
6. 1 Ring 0.30
14mm x 100 ring
Binding Comb 0.47 2 Pack 46.60
7. 1 Ring
22mm x 50 ring
Binding Comb 0.65 2 Pack 64.70
8. 1 Ring
28mm x 50 ring
9. Binding Tape 24mm x 5m 29.5cm 0.13 30 Pieces 66.00
10. Binding Tape 36mm x 5m 29.5cm 0.13 30 Pieces 69.00
11. Binding Tape 60mm x 5m 29.5cm 0.21 30 Pieces 108.00
Total 2.50 1,013.15

19
 Type of Contact
No Supplier name Address
supply number

Hikari Distribution Lot 41-1, 1st Floor, Beverly Hills Plaza, Printer
1. Jalan Bundusan, Penampang, 088-724 997
Sdn Bhd Cartridges
Kota Kinabalu 88300, Sabah

Lot 4, 5, 6 Plaza YLY,

2L Bersatu Sdn. Jalan Tuaran Bypass,
2. Printer 088- 383883
Bhd. 88450 Kota Kinabalu.

Printer
Lot 5, 6, and 7, Blok 34A, Tkt Bawah &
AA Stationery Accessories,
3. 1, Kedai Pekan Koidupan, 88300 088-727 092
Sdn.Bhd Ink, Paper &
Penampang, Sabah
Binding

4.4 Manpower Requirements Planning

Position Quantity Salary EPF SOCSO Medical Total Total
(RM) 12% 2% (RM) monthly/ monthly
(RM) (RM) worker (RM)
(RM)
Clerk 1 1,500.00 180.00 30.00 200.00 1,490.00 17,880.00
Delivery
3 4,500.00 540.00 90.00 600.00 4,470.00 53,640.00
man
Total 4 6,000.00 720.00 210.00 800.00 5,960.00 71,520.00

No. Position Task

1. Clerk  According to the company's strategic goals and operating
policies, formulate company operating plans, organize and
analyze various operating data, write operating analysis
reports in a timely manner, and put forward reasonable
suggestions.
 Supervise and coordinate the relationship between various
departments, and maintain the company's daily operations.
Handle and maintain the relationship with customers.

2. Delivery  Familiar with the traffic route and master the means of
transportation. Carry out the transportation and delivery of
man
goods.

20
4.5 Machine and Equipment
No. Machine and Quantity needed Price/unit Total cost (RM)
equipment (RM)

1. Printer Multi-Purpose 4 1,888.00 7,552.00

tray
2. Laminator Machine 2 150.00 300.00
4. Cutting system 2 29.99 59.98
5. Computer 4 1,100.00 4,400.00
6. Binding machine 2 199.00 398.00
9. Motorcycle 1 3,699.00 3,699.00
10. Handphone 1 799.00 799.00
Total 29 7,864.99 17,207.98

No Supplier name Address Contact number

Lot 4, 5, 6 Plaza YLY,

Jalan Tuaran Bypass,
1. 2L Bersatu Sdn. Bhd. 088- 383883
88450 Kota Kinabalu.

Ground Floor, New Township, Lot A11-A13,

2. Senheng Electric Block A, Lorong KK Taipan 1, Inanam, 011-1088 8461
88450 Kota Kinabalu, Sabah

Lot No.38, Type S1, Bigwheel Industrial

3. Flexxo (KK) Sdn. Bhd. Park, Mile 7½, Menggatal, Jalan Tuaran, 088-396 652
88450Kota Kinabalu, Sabah, Malaysia.

21
4.6 Operation Layout

Marketing

Clerk
RECEPTION /
CLECK

MANAGER
CUSTOMER BINDING AREA
OFFICE
WAITING AREA

PACKING /
SHIPPING PANTRY

WASHROOM STORE

Picture : Shine Printing Office Layout

22
4.7 Business Location

Picture : Shine Printing Office’s Location

Shine printing business location at Lot S-204, 2nd Floor, 1Borneo Hypermall, Kota
Kinabalu, Sabah is open for business from 8am to 6pm from Mondays to Saturday.
Currently, Shine’s manpower is generally engaged throughout the workday. During
high demand periods, employees are asked to compensate for a little more than their
usual full bodies of work, but the pressures are never so high as to justify the cost
effectiveness of even temporarily hiring new staff for the same purposes.
As the company expands however, there is the intention to use innovative
employment mechanisms to better streamline various needs, and so increase
operational effectiveness. With the expansion into new business lines, the hiring of
new staff will become necessary to match the day-to-day workload demands under
more sophisticated operations, which offload some of the general tasks currently
handled by the managing director. New staff members will be engaged. Quality
control is of import. Currently, all output to corporate clients is delivered and
installed by the managing director personally; thus, the final product is examined at
the highest level of management before being delivered. As Shine expands, this
system may become obsolete and quality checks will have to be delegated to
another member of staff, guided by the appropriate quality control tools – the
operations manager (an expansion of the role of administrator).

23
 4.8 Operation Cost
4.8.1 Direct material costs
Amount
required for 1 Price
No. Raw material
day /unit ( RM)

1. Paper A4 80gsm 1 Sheet 0.005

2. Laminate Paper 1 Sheet 0.18
3. Colour Paper A4 80gsm 1 Sheet 0.01
4. Binding Comb 10mm x 100 ring 1 Ring 0.15
5. Binding Comb 2mm x 100 ring 1 Ring 0.25
6. Binding Comb 14mm x 100 ring 1 Ring 0.30
7. Binding Comb 22mm x 50 ring 1 Ring 0.47
8. Binding Comb 28mm x 50 ring 1 Ring 0.65
9. Binding Tape 24mm 29.5cm 0.13
10. Binding Tape 36mm 29.5cm 0.13
11. Binding Tape 60mm 29.5cm 0.21
Total 2.50

4.8.2 Direct labour costs

Total
EPF SOCSO Total
Salary Medical monthly/
Position Quantity 12% 2% monthly
(RM) (RM) worker
(RM) (RM) (RM)
(RM)
Clerk 1 1,800.00 216.00 36.00 200.00 1,748.00 1,748.00
Delivery
3 5,400.00 648.00 108.00 600.00 1,748.00 5,244.00
man
Total 4 7,200.00 864.00 144.00 800.00 3,496.00 6,992.00

4.8.3 Overhead costs

No. Expenses Monthly expenses
(RM)
3. Communication tool 500

Total 500

24
4.9 Operation Budget
4.9.1 Fixed costs
No. Items Total Expenses (RM)
1. Equipment 17,207.98
Total 17,207.98

4.9.2 Variable costs

No. Items Monthly Expenses (RM)
1. Raw material costs 1,013.15
2. Direct labour costs 5,960.00
3. Overhead costs 500
Total 7,473.15

25
5.0 FINANCIAL PLAN
5.1 Project Implementation
5.1.1 Capital Expenditure
NO. Particulars RM
1 Equipment
Machine 17,207.98
Computer 7,388.00
2 Office Furniture 6,352.00
3 Renovation 4,500.00
4 Vehicle 8,280.00
5 Intangible assets (Company logo) 250.00
TOTAL 43,977.98

5.1.2 Working Capital expenditure

No. Particulars RM
1 Organizational Expenses
Rental 2,500.00
Salaries 7,336.00
Utilities 1,800.00
2 Marketing Expenses
Marketing Personnel 1,662
Social media Advertising 1,500
Email Marketing 2,400
Mobile Application 7,399
Promotion 966
3 Operational Expenses
Raw material costs 1,013.15
Direct labour cost 5,960.00
Overhead cost (telephone) 500.00
Total 33,036.15
TOTAL (Two Months): 33,036.15 x 2 66,072.30

5.1.3 Other Expenditure

No. Particulars RM
1 License 25.00
2 Vehicle Insurance 178.95
3 Registration fees 130.00
4 Vehicle road tax 52.00
5 Deposit
Utilities 500.00
Premise 7500.00
TOTAL 8,385.95

26
5.1.4 Contingency Cost
NO. Particulars RM
1 Capital Expenditure 43,977.98
2 Working Capital Expenditure 66,072.30
3 Other Expenditure 8,385.95
Total 118,436.23
Contingency Cost (10%): 118,436.23 x 10% 11,843.62
TOTAL PROJECT IMPLEMENTATION COST 130,279.85

5.2 Sources of Finance Schedule

No. Particulars RM
1 Equity Contributions
Personal cash 31,999.85
2 External Sources
Hire purchase 8,280
Government grant 40,000
Business angel 50,000
TOTAL 130,279.85

Hire Purchase Loan Amortization Schedule

Type of Asset: Motorcycle Interest rate: 8%
Cost of Asset: RM8,280.00 Loan period: 5 years
Down payment: 20% (RM1,656.00) Method: Flat rate
Loan amount: RM6,624.00
Year Interest (RM) Principal RM) Payment (RM) Balance (RM)
0 0 0 0 6,624.00
1 529.92 1,324.80 1,854.72 5,299.20
2 529.92 1,324.80 1,854.72 3,974.40
3 529.92 1,324.80 1,854.72 2,649.60
4 529.92 1,324.80 1,854.72 1,324.80
5 529.92 1,324.80 1,854.72 0

27
5.3 Pro Forma Cash Flow

28
 5.4 Pro Forma Income Statement

Proforma Income Statement for Shine Printing

Year 1 Year 2 Year 3
RM RM RM RM RM RM
Sales 427,690 491,843.50 565,620
Net sales 427,690 491,843.50 565,620

(-) Cost of Goods

sold
Opening inventory
Purchase of raw
12,157.80 12,157.80 12,157.80
materials
(-) Closing
inventory
Cost of sales 12,157.80 12,157.80 12,157.80
GROSS PROFIT 415,532.20 479,685.70 553,462.20

(-) Operation
expenses
Rental 30,000 30,000 30,000
Salaries
(Organizational & 159,552 210,096 242,304
Operational)
Utilities 21,600 21,600 21,600
Marketing Personnel 19,944 44,016 48,144
Social Media
4,500 4,500 4,500
Advertising
Email Marketing 7,200 7,200 7,200
Mobile Application 7,399 7,399 7,399
Promotion 966 0 0
License 25 25 25
Vehicle Insurance 178.95 178.95 178.95
Registration Fees 130 130 130
Vehicle Roadtax 52 52 52
Interest on hire
529.92 529.92 529.92
purchase
Deposit 8,000 0 0
Total operating
260,076.84 325,726.87 362,062.87
expenses
NET
155,455.36 153,958.83 191,399.33
PROFIT/(LOSS)

29
5.5 Pro Forma Balance Sheet
5.5.1 Depreciation Schedule
Type of asset: Machine and Scrap value: 0
Equipment Method: Straight line
Original Cost: RM24,596
Economic life: 5 years
Annual Depreciation Accumulated
Year Book Value (RM)
(RM) Depreciation (RM)
0 0 0 24596.00
1 4,919.20 4,919.20 19,676.80
2 4,919.20 9,838.40 14,757.60
3 4,919.20 14,757.60 9,838.40
4 4,919.20 19,676.80 4,919.20
5 4,919.20 24,596 0

Type of asset: Office Furniture Scrap value: 0

Original Cost: 6,352 Method: Straight line
Economic life: 5 years
Accumulated
Annual Depreciation
Year Depreciation Book Value (RM)
(RM)
(RM)
0 0 0 6,352.00
1 1,270.40 1,270.40 5,081.60
2 1,270.40 2,540.80 3,811.20
3 1,270.40 3,811.20 2,540.80
4 1,270.40 5,081.60 1,270.40
5 1,270.40 6,352.00 0

Type of asset: Vehicle Scrap value: 0

(Motorcycle) Method: Straight line
Original Cost: 8,280
Economic life: 5 years
Accumulated
Annual Depreciation
Year Depreciation Book Value (RM)
(RM)
(RM)
0 0 0 8,280
1 1,656 1,656 6,624
2 1,656 3,312 4,968
3 1,656 4,968 3,312
4 1,656 6,624 1,656
5 1,656 8,280 0

30
5.5.2 Pro Forma Balance Sheet
YEAR 1
SHINE PRINTING
Pro Forma Balance Sheet Year 1

RM RM RM RM
Acc. Book
FIXED ASSETS Cost
Depr. Value
Machinery & Equipments 24,896 4,919.20 19,976.80 19,976.80
Office furniture 6,352 1,270.40 5,081.60 5,081.60
Motorcycle 8,280 1,656 6,624 6,624
Renovations 4,500 nil 4,500 4,500
Company logo 250 nil 250 250
36,432.40
CURRENT ASSETS
Cash 121,999.85
Cash at bank 116,322.16
Deposit 8,000
246,322.01

CURRENT LIABILITIES
Creditors (Ac. Payable)

TOTAL ASSETS 282,754.41

EQUITY
Capital 121,999.85
Profit/(loss) 155,455.36

LONG TERM
LIABILITIES
Hire purchase 5,299.20
282,754.41

31
YEAR 2
SHINE PRINTING
Pro Forma Balance Sheet Year 2

RM RM RM RM
Acc. Book
FIXED ASSETS Cost
Depr. Value
Machinery & Equipments 24,896 9,838.40 15,057.60 15,057.60
Office furniture 6,352 2,540.80 3,811.20 3,811.20
Motorcycle 8,280 3,312 4,968 4,968
Renovations 4,500 nil 4,500 4,500
Company logo 250 nil 250 250
28,586.80
CURRENT ASSETS
Cash 122,000
Cash at bank 129,346.43
Deposit 0
251,346.43

CURRENT LIABILITIES
Creditors (Ac. Payable)

TOTAL ASSETS 279,933.23

EQUITY
Capital 122,000
Profit/(loss) 153,958.83

LONG TERM
LIABILITIES
Hire purchase 3,974.40
279,933.23

32
YEAR 3
SHINE PRINTING
Pro Forma Balance Sheet Year 3

RM RM RM RM
FIXED ASSETS Cost Acc. Depr. Book Value
Machinery & Equipments 24,596 14,757.60 9,838.40 9,838.40
Office furniture 6,352 3,811.20 2,540.80 2,540.80
Motorcycle 8,280 4,968 3,312 3,312
Renovations 4,500 nil 4,500 4,500
Company logo 250 nil 250 250
20,441.20
CURRENT ASSETS
Cash 122,000
Cash at bank 173,607.73
Deposit 0
295,607.73

CURRENT LIABILITIES
Creditors (Ac. Payable)

TOTAL ASSETS 316,048.93

EQUITY
Capital 122,000
Profit/(loss) 191,399.33

LONG TERM LIABILITIES

Hire purchase 2,649.60
316,048.93

33
 5.6 Financial Analysis
5.6.1 Efficiency Ratios
The asset turnover ratio measures Shine Printing ability to generate revenue from
assets. The higher asset turnover ratio, the more efficient a company is at
generating revenue from its assets. Conversely, if a company has a low asset
turnover ratio, it indicates that not efficiently using its assets to generate sales. The
formula for asset turnover ratio is:

Asset turnover ratio = Net sales / Total assets

Asset Turnover
Year Net Sales (RM) Total Assets (RM)
Ratio
1 427,690 282,754.41 1.5
2 491,843.50 279,933.23 1.8
3 565,620 316,048.93 1.8

Shine Company for year 1 are less efficient in generating revenue from our assets
which is 1.5 compare to year 2 and year 3 that is more efficient with 1.8 asset
turnover ratio.

5.6.2 Profitability Ratios

Type of
Formula Year 1 Year 2 Year 3
Ratio
1. Gross Gross Profit 415,532.20/427,69 479,685.70/491,843. 553,462.20/565,62
Profit Margin = (Gross 0 x 100 50 x 100 0 x 100
Margin Profit/Sales)x100 = 97% = 98% = 98%
Net Profit 155,455.36/427,69 153,958.83/491,843. 191,399.33/565,62
2. Net Profit Margin= (Net 0 x 100 50 x 100 0 x 100
Margin Income/Sales)x1 = 36% = 31% = 34%
00

The higher gross profit margin was indicate that our company can make a
reasonable profits on sales. There are an increasing in terms of our gross profit
margin from 97% in first year to 98% in second and third year. That means our
company is viable.
Hence, we expected to achieve highest net profit margin in year 1 compare
to year 2 due to increment in sales and in the year 3 there is slightly increase to our
company net profit margin. As overall, we can conclude that the positive
performance of net profit can make our business survive in the market.

34
5.6.3 Break Even Analysis
Break-even analysis in economics, business and cost accounting refers to the point in
which total cost and total revenue are equal. We are using break-even point analysis
to determine the revenue to cover total costs, which is fixed and variable costs.

Break-even analysis formula:

Break-even Quantity = Fixed costs/(Average Price - Variable Costs per units)

Average Price Variable Contribution Break-Even

Fixed Costs (RM)
(RM) Costs (RM) Margin (RM) Units
39,475.93 6.00 2.50 3.50 11

Variable Costs
Fixed Costs Amount (RM) Amount (RM)
per unit
Machinery & Equipment 17,207.98 Raw materials 2.50
Furniture 6,352.00
Renovation 4,500.00
Vehicle 8,280.00
Company logo 250.00
Rental 2,500.00
License 25.00
Insurance 178.95
Roadtax 52.00
Registration fees 130.00

Total 39,475.93 Total 2.50

35
 RM

Total costs (Variable + fixed

39,503.43

39,475.93
Fixed Costs

66

11

Number of Units

Explanation:
 The number of units is on the X-axis(horizontal), meanwhile, the RM amount is
on the Y-axis(vertical).
 The red line represents the total fixed costs, which is RM39,475.93.
 The yellow line represents revenue per unit sold. For example, selling 11 units
would generate 11 x RM6 = RM66.
 The blue line represents total costs (variable and fixed cost).

36
APPENDICES

Picture 1: Area Shine Printing

Google Maps

Picture 2: Kota Kinabalu Population Graph

PopulationStat

37
Picture 3: Employee’s Statistic UMS

Picture 4: Student’s Statistic UMS

38