TIME TO EAT

YEOH HUEY LING 562133

YOSHUA NATAADMADJA 555980
YI LU 513879
FENG SHENG 544071
PENGCHEN ZOU 563656
YUXI WANG 547436
TONY SONG 560367
TABLE OF CONTENTS___________________________________
Section 1.0 INTRODUCTION TO THE COMPANY 1
1.1 Company Background 1
1.2 Business Intent 2
1.3 Growth Strategies 5
1.4 Long Term Goals of Company 7
1.5 Market and Competitors Information 8
1.6 Potter’s 5 Forces 10
1.7 SWOT Analysis 12
Section 2.0 EMPLOYMENTS OF KNOWLEDGE WORKERS 14
2.1 Management Team 14
2.2 Organizational Chart 16
2.3 Human Resource Plan 17
Section 3.0 MARKETING PROGRAMS 22
3.1 Marketing Overview 22
3.2 Marketing Models 27
3.3 Survey Analysis and Conclusion 32
Section 4.0 FINANCIAL PROJECTION 33
4.1 Financial Overview 33
4.2 Financial Development of Expenses over 3 Years 41
Section 5.0 RISK MANAGEMENT 42
5.1 Risk Assessment 42
Section 6.0 REFERENCES 47
Section 7.0 APPENDIXES
7.1 Appendix A: Survey Result
7.2. Appendix B: Accountability Tables
7.3 Appendix C: Financial
7.4 Appendix D: Risk Analysis
Section 1.0INTRODUCTION TO THE COMPANY
1.1 Company Company Background
Background
Smart Pet World was a company set up with a penultimate goal of
producing pet accessories which fit the demand of both customer
and pet to the highest level of satisfaction. Our breakthrough
product will be an auto pet feeder dispensing device which
encapsulates simple engineering with design ingenuity. Our team
of 7 highly capable engineers and business analysts will focus on
our business strategies, marketing goals, quality assurance and
product development. We will be striving for the goal of expanding
the company past food dispensers into all sorts of pet accessories.

Vision Statement Mission Statement

We aim to provide high quality, To use smart engineering and
efficient and reliable products ingenuity to produce products
to the convenience of pets and tailored to our niche
pet owners worldwide.

Operational Setup
For our organization we will be setting up an office in the
Greater Melbourne CBD area. This gives us location benefits
as we would be close to most retailers and suppliers. To start
off we will need to first develop our first prototype. Capital has
been allocated for this procedure and we expect this to be
completed within the first month of starting off the company.
Administration costs have also been set aside; this includes
start-up costs such as office equipment.
 Product Prototype: Time to Eat

Figure 1. Product Prototype

1.2 Business Green &Pleasant Initiatives

Intent Consider the impacts of our actions to the society and the
environment, the initiatives we have, and will make, are more than
just profit and high quality itself. Following is a growing list of our
"green" and pleasant undertakings.

Environment and Health Initiatives

Environment problems are regarded more and more important
during the development of human society. The materials with ‘lead-
free’, low radiation, recycling and Biodegradable or other
requirements about environment protection are more and more
common. The Perfect Pet feeder uses a quality rechargeable and
recyclable battery pack, which in one hand can save continual
consumption on battery, in another hand, can reduce the bad
impact of battery to the environment. Besides, our products are not
only with the materials that will have ‘0’ burden to our environment,
but also be completely safe for you and your pets.

Energy Saving Initiative

We can promise that we will do our best to save energy use. When
you recharge the battery, wash the container, change the
opponents or do other maintenance, we will apply our creation and
improvement all the time for our customers to save continual
consumption and energy as well.

Easy-To-Use Initiative
Despite how complex and high-tech our products will be, we
will provide our customers easy-to-use interfaces and
operation. Forget about the annoying specifications and
complexity on the board. Everyone can have easy and
pleasant feelings towards our product.

Visual Ultimate Success

 Develop different ranges of products not only for pets, but
for stock raising industry as well;
 Our products will have a considerable share of the
market. We will export our products all over the world
with high reputation.
 We will become not only developing company but a
wholesaler, where we will distribute internationally.
 We will also publish our website and do excellent online
shopping with friendly services such as different
languages, best sales service, etc. to make every
customer feel comfortable and wanted.
 We will go through public stock listings, invite
shareholders to invest our company to develop more
creative, easy-to-use products.
 If possible, we will set up an animal charity, advocating
wildness protection.

Clear Indication of Intended Business Activities

 We will set goals from period to period and take record of
every footprint of what we have done. Set milestones for
every necessary step. Review the progress or failure for
each period and keep improving all the time.
 Have regular consultant workshop, inviting random
customers or patrons to discuss their impression of our
products and accept any expectations from them.
 Set appropriate management for both the business and
human resource. Set up developing plans, not only for
creating new and useful products but also for the new
knowledge and skills.

The Direction of the Company

 During initial start-up stage, our products will be focused
not much on high technology, but a combination, creation
and improvement of the available technology, and at the
same time keeping costs low. We will license the product
idea and design blue prints to manufacturers which can
get money back quickly and efficiently instead of finding
customers by ourselves, which may rise up the cost and
waste time. Develop key business partnership with the
manufacturers. Self-distributing to companies and
Retailers. Target customer will be focusing on average
consumers, who are more likely to spread the reputation
of our product.
 During expansion growth, we will advance our company
in more aggressive way by going through public stock
listings. We will focus not only a combination of available
technique, but also some high-tech products
development to create a range of products that fit for
different ranking of people who have different scale of
expectations of the products. Set up our own
manufacturer and find customers by our own, which may
reduce part of the intermediate costs.

Exit strategies
 Merge
Find another proper company, merging into one and
creating more values. If we are looking to leave entirely,
then we can require for the other involved company to
stay on(Entrepreneurs, 2012a).
  Sell the shares
If our company achieved saturation growth, we would sell
our company and products patent to other venture
companies, competitors, management or staff.Or sell the
equity to the present partners, or to a new employee who
is appropriate for partnership. If we want to leave the firm
cleanly, we will getmoney from the saleof the whole
company (Entrepreneurs, 2012b).
 Liquidate
If our company will not achieve the saturation growth, we
will liquidate our products, patent ID. The assets which
are left have to be used to repay creditors. The remainder
is todistributeto the shareholders(Entrepreneur, 2012).

1.3 Growth Financial Strategies(Graham 2005)

Strategies
Stage 1: Seed Funding
Since our company is a new enterprise in the competitive pet
product industry, we don't have any users and we don't have to
pay much for infrastructure. Our main expenses are spent in
setting up the company, which costs a couple thousand dollars in
legal work and registration fees, and the living expenses of the
founders. The Australian government encourages
entrepreneurship by offering grants and loans that can help
entrepreneurs cover the initial costs of starting small businesses
that they may not be able to otherwise attain.

According to the eligibility requirements and intended uses of those

loans and grants for entrepreneurs, we can apply for the
government funding program C64 which provides up to $50,000 in
a residentially-secured business loan with a low variable interest
rate for the life of the loan to launch a new business. After that, our
main job is to build the first prototype of our product, as well as
starting sniffing around for angel investors right away.

Stage 2: Angel Investors

After the completion of our first prototype, we have been traversing
our network of government agencies in search of angel investors
and plan to raise $200,000 which is enough to last for one year.
Assuming we can find an angel who agrees to invest at a pre-
money valuation of $1 million, then all the previous shareholders’
percentage ownership will be diluted by a sixth as the company
issues $200,000 worth of new shares to the angel after the deal.

Then we will set to work turning our prototype into something we

can release to the real market and start to get users. Hence, we
need to spend a lot on marketing, or build some kind of expensive
infrastructure, or hire highly paid salesmen. To achieve that stage,
we will be introduced to venture capital firms.

Stage 3: Series A Round

Armed with the detailed business plan and the ability to demo a
real, working product, the company will visit the venture capital
firms it has introductions to. The focus of venture capitalists is
typically in bringing a start-up firm to an initial public offering (IPO)
and then takes a significant stake in the ownership of the new firm.
At this point the startup will certainly hire more people as those
millions must be put to work. The company would have required
additional funding rounds, presumably at higher valuations.

Figure 2. Financial Strategy(C3E n.d.)

1.4 Long Term
Goals of
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Technology & Product Development Strategies

Figure 3. Technology & Product Development Flow

Short Term Goals

 Obtain Australian Company Status.
Develop key partnerships with manufacturers (China) for
sales of product licenses.
 Long Term Goals
 Establish own branding with high mindshare amongst
consumers as a company which creates affordable auto
pet feeder products for the financially average user.
 Get listed in the stock exchange.
 Attain substantial inflow of revenue so as to attract
Venture Capitalists as catalyst funding for the exponential
growth of the company.

1.5 Market and Best Friends

Competitors Smart Pet World need to have some best friends in order to
Information maximize its profit and sustainability. One of the most important
best friends is the buyers. The buyers are important due to their
role in buying Smart Pet World product which is Time to Eat. This
role is important as the buyer is one of Smart Pet World main
source of income.

Another Smart Pet World best friend is the pet shop and pet
saloon. This is because pet shop can work as small scale retailers
for Time to Eat. Small scale retailers are one of Smart Pet world
source of income. Customers will be more likely to buy their dog
feeder from the store which they have already known. The other
advantage of having pet shop and pet saloon as best friend is they
can work as free advertisement for Time to Eat. The other Smart
Pet World best friend is the veterinarian and pet hospital. This is
because the vet and pet hospital can be a good advertiser for Time
to Eat. The customers will usually buy a product which their vet
recommended.

Worst Enemies
Competitors with advantages in product feature or price are usually
our worst enemies.
Furthermore, it is possible that those giant companies which agree
to manufacture our products to be our worst enemies. We are new
entrepreneurs; we do not have strong connections with our
potential customers, therefore those giant companies might team
up with our competitors and use our ideas and designs to improve
their products.

Regardless, how many potential enemies we might face, there will

always be something that we could do to turn our worst enemies to
our closest friend. For instance, by examining and studying the
competitors’ similar products, we could learn from their failures and
successes to prevent ourselves from falling into the same trap.

Allies
Key partnership with competitors by licensing the product
idea and design blue prints in bulk to manufacturers and
henceforth they can choose to however they wish topackage
and market the products through their distribution channels.

Besides, it is also our company intention to self-distribute our

own products by partnering with the existing large scale
retailers such as Melbourne Central Shopping Centre,
Target, Kmart, Big W, Myer and Coles Supermarket. We
have found out that successful large and small scale retailers
have close intimacy connection with the customer and these
retailers do not require so many units for sale and we could
be the alternative channel for them to obtain these auto pet
feeder products with minimum order quantities.

Patrons
As faced to the public people, TIME to EAT should have a
wide market and advertisement all the city. We should
communicate as wide as possible to spread the reputation of
our product.
Supermarket
One kind of the patron is supermarket. Woolworths and
Coles are top 2 supermarkets in Australia, accounting for
almost 80% of supermarket sales. These two supermarkets
have huge influence of people’s life. It will be a great help for
our product promotion if we invite them to be our patrons.
Home Appliances Store
As our product is a kind of home electrical appliance, we
should negotiate with the Home appliances store as well.
Harvey Norman, The Good Guys, etc. are a famous store in
Australia that is selling kinds of home appliances. To be our
patrons, they can surely promote our product to public
quickly.
Online Appliances Retailer
As online shopping is more and more popular, we should
develop our online market as well. Appliances online is
Australia’s largest online appliance retailer. We might
communicate with them to talk about our new fashionable
product: Time to Eat. There are also a great number of pet
supplies store, which might be another kind of our patrons
that we need keep in touch with closely.
Wholesaler
Besides the retailer, wholesalers are an important patron for
us, once they become our patron, we can get the steady
buyers with large amount of products, which will help us
develop our company quickly and steadily. Pet supplies
wholesaler companies like: Animal Supplies – Wholesale
distribution specialists; Perfect Paws; My pet warehouse;
Pets Palace, etc. are all the famous pets supplies both online
and offline wholesalers in Australia.
Negotiation Methods
To negotiate with these patrons, we will make contracts
about the selling details. For the patrons of retailer, we would
like to rent a small place for displaying our new product. We
sell our product by ourselves on the first step. Then the
retailers will be happy to buy certain amount of our products
and sell by themselves as well if the sale of display is good.
And we will provide them the propagandistic card for our
 product and ask them to distribute to the customers and
meanwhile we will share to the retailers a small amount of the
profit for selling each one of our product. For the online
wholesalers, we can provide 10 products for each of them for
free and ask them to put the advertisement on their website
for 3 days and they can sell it at a lower price in order to build
up our reputation quickly. If the product is welcomed by many
people then we can negotiate about the details of the selling
contracts.

Umpire
If a conflict in business is not very severe, simple negotiation
might suffice. With this process, the conflicting parties agree
to discuss their concerns with each other openly. However, if
the conflict has escalated, mediation will be more effective to
facilitate discussion and a solution, especially when the
parties can no longer communicate or work together. An
umpire refers to a third party in conflict resolution as business
mediation which has the legal power to determinate the
solution.(wiseGeek 2003)
Founded in 1975 as a not-for-profit company limited by
guarantee, The Institute of Arbitrators & Mediators Australia
(IAMA) is the nation's largest, independent and most
experienced arbitration and mediation service. The Institute
aims to serve the community, commerce and industry by
facilitating efficient dispute resolution methods including
arbitration, mediation, conciliation and adjudication.(IAMA
1975) . It will act as a qualified third party for consulting when
a business conflict rises.

1.6 Porter’s 5 Porter’s five forces is a systematic way of thinking which helps
Forces people to explore the potential factors that affect the prices and the
profits(Allinger, 1977) of the Smart Pet World. Pet product industry
is a very profitable sunrise industry. With five forces analysis, we
can clearly understand which force are our strength or weakness
and the reasons of it.

Buyer Power
The Smart Pet World faces weak buyer power because there are
few buyers with significant market share and little price or product
influence. However, the main buyers of the Smart Pet World are
retailers rather than individual. Retailers like Big W, Target, Coles
and Woolworths have strong power to negotiate for price with the
Smart Pet World because their purchases and sales of SPW’s
products are overwhelming in Australia market. Besides, SPW also
have a plan to sell licenses to their manufacturers in China and
buyback a part of products from them in order to achieve a ‘win-
win’ outcome. This kind of buyers is weak because there are lots of
substitutes in China.
Verdict - Strong buyer power from retailers in Australia while weak
buyer power from manufacturers in China.

Supplier Power
In the initial phase of business, there is a ‘symbiotic relationship’
between the suppliers and SPW. SPW will sell licenses which
allowing them to sell SPW’s products in their domestic market. At
the same time, SPW buybacks a certain amount of products to
reduce their market risk. In SPW’s ‘win-win’ business plan, there
will be two manufacturers with a same order from SPW in the first
year while the good performer will get a larger order in the second
year. Nevertheless, because of the suppliers’ switching cost, SPW
faces supplier power to some extent. However, there is also a
large amount of business that SPW provide to them. Besides,
there are many competitive suppliers in China that can be used as
substitutes. Moreover, most of them are unfamiliar with oversea
market, which means there is little threat from them.
Verdict - Suppliers are little weak.

Threat of New Entrants

In order to enter certain segments in pet products industry like pet
feeding machine, amount of capital investment is needed. Besides,
the success of an entrant does not totally depend on how superior
their products are, but whether the same retailers willing to accept
them. To small manufacturers, there are restricted distribution
channels. While to some mature well-known manufacturers such
as Philip, it’s easy to them to conclude SPW’s business of pet
feeding machine under their small home appliances business.
Although SPW’s products were patent-protected, it is not high-
technology with a high scale threshold.
 Verdict: Low threat of new entrants from small manufacturers,
while high threat from relative brand enterprises’ extension.

Threat of Substitutes
The largest powerful substitute for the SPW’s pet feeding machine
is food bowl. This traditional feeding way is much cheaper and has
a strong product loyalty. However, the SPW’s auto pet feeding
machine has more functions to satisfy customers’ special needs.
To customers who have a lot of spare time the traditional one may
more suitable, however, to customers who are busy at work or
leisure, the SPW’s product is tailored. Because of the different
customer location, the threat of substitutes may be limited high.
Verdict: Limited high threat of substitutes.

Degree of Rivalry
Pet product industry is a sunrise industry with a high market growth
rate. In this industry, our target customers are young people and
office worker who cannot feed their pets on time. On the basis of
these analyses, the SPW’s promotion location is fashion which
means more profits and different strategy with competitors.
However, there are many players in the industry and the price war
between SPW and competitors is inevitable.
Verdict: High degree of rivalry.

In conclusion, this business is still worth proceeding with.

Strengths
Since we are new entrepreneurs, the research obtained by
1.7 SWOT competitors help us to locate our potential customers as well as to
Analysis define our focus group. We have the advantage to design our
product to satisfy our targeted customers by studying the best
features of the existing products and innovative our new features.
That is we do not need to build up our product from scratch. We
provide the most desirable features with the least cost as we use
our costumers surveys help to eliminate costly features which our
customers have the least concern on.
We have lower fix cost compared with other bigger companies. No
redundancy in management system and no large amount of money
used for administration. All the funds and human resources are
used to maximize the profits as every one of us owns this company
and willing to do our best to make the company better off. The
variety of professional skills possessed by team members make
this company fully function without hiring additional high end
employees who can be very costly and introducing extra
production cost.

Weakness
Even though as new entrepreneurs we have the ability to be
creative, innovative and learn from other companies’ mistakes.
This also brings some weaknesses to our company. Because we
are still immature in this business, without carefully analyzing and
designing the product we might fail to provide satisfaction to
customers or even more seriously - we might misunderstand the
role we should be playing in the market. Regardless, we all have
some experience on our professional fields; we might not succeed
to function as a team if we do not have common and shared goals

Opportunities
RSPCA website suggests that Australia is one of the countries
which have the most pet ownership as 63% of Australia families
have pets. 38% of these households have dogs and 25% have
cats. That is 2.8 million and 1.9 million households have dogs and
cats respectively (RSPCA, 2010). This indicates that the potential
market for our product is quite good at this stage.
Data also shows that for these who do not have pets at this
moment; there is 53% chance that they might get pets later on in
their life (RSPCA, 2010). This trend might increase the number of
our potential customer, as well as expand the market for our
current product or even for our company as a whole.
From 17th May 2011 China implemented the “One dog under one
roof policy” which made dog ownership to be less costly, but at the
mean time it limits the number of dogs within one household (Facts
and Details, 2011). In general, this policy makes dogs more
affordable in China; therefore, this policy might increase the
demand for corresponding dogs’ or pets’ products.
The New York Times suggested the one-child policy and the
improvement in China’s economy encourage the growth in keeping
dogs as pets. The growth in middle class who love dogs has
 helped the image of dogs to get better in current years. The fact
that there were approximately 58 million dogs in China’s 20 major
cities at later 2009, and this number is still increasing about 30%
every year is illustrated by the survey carried out by Dog Fans – a
Beijing Based magazine (Facts and Details, 2011). All of these
provide evidences to proof that there are opportunities for our
company to extend our existing market from Australia to China in
the near future.

Threats
Survey results show that only about 10% people have heard of
‘Auto Pet Feeder’. It indicates that our company needs to spend
large amount of money to advertise this product in order to develop
the potential market. Survey results also indicates that only 30% of
people who would like to buy one ‘Auto Pet Feeder’, which left 20%
of them do not want to buy and 50% of them are not sure. Once
again, this might lead to over spend in adverting.Even though
those existing similar products can be used to determine the
features needed for our product, they also cause a smaller market
share for our product. It can be quite difficult for our new product to
earn their royalty customers within a short period.

Section 2.0 EMPLOYMENT OF KNOWLEDGE WORKERS

2.1 Management The management will be undertaken by the seven pioneers of the
Team company.

Position Pioneer
Chief Executive Officer Yoshua Nataadmadja
Chief Technology Officer Tony Song
Chief Management Officer Feng Sheng
 Electronic/Electrical Engineer Yeoh Huey Ling
Mechatronic Engineer Yi Lu
Accountant PengChen Zou
Administrator Yuxi Wang

Resume of pioneers members (core team):

Yoshua Nataadmadja (CEO)
Graduated from University of Auckland, NZ in Bachelor Degree of
Chemical and Materials Engineering (Honors). He is currently
pursuing a Master in Engineering Management from University of
Melbourne, AUS. He had been working as engineer in brake pads
and spring factory during his university years. In addition, he is
also has been in management position in mineral water and dental
equipment supplier. His long experience in management position in
many different companies would be an important asset in his role
as the CEO of Smart Pet World.

TonySong (CTO)
Graduated from University of Auckland, NZ with a Bachelors of
Chemical and Materials Engineering (Honors). Currently studying a
Master of Engineering Project Management in the University of
Melbourne, Australia. Worked in a wide variety of fields including:
industrial engineering, education and hospitality. This wide scope
of work experiences makes him a suitable candidate for the Chief
Technology Officer position.

Feng Sheng (CMO)

Graduated from the Melbourne University, majoring in Master of
Engineering Management, also graduated from Beijing University
of Technology, majoring in Master of Environmental Science and
Engineering. Have the experiences of project management and
marketing management in The Wildness Society for 5 years. Have
done many researches about animal psychology and behavior.
Also have deep study of animal market. She will support the
development and success of the marketing function of Smart Pet
World and take responsibility for specific marketing campaigns and
projects or our company and to assist with the implementation of
the policy and strategies based on marketing analysis and
prediction.

Yeoh Huey Ling (Electrical/Electronic Engineer)

Graduated from Northumbria University, UK with a first class
honors in Bachelor Degree of Electrical and Electronics
Engineering. She is currently pursuing a Master in Engineering
Project Management from University of Melbourne, AUS. Apart
from graduated top of her class, she has an affinity for software
and hardware related subjects and aspires to venture into the field
of R&D. Besides, she has been selected to present a technological
based business plan to several CEO’s of Malaysian technology
based companies in a national level competition and emerged
champion. In addition, she has also been selected to present her
final year project entitled harmonic filter and antenna switch design
in design and innovation expo and awarded Sevaraja award for
best project. Her high involvement in the field of R&D will be a vital
catalyst as the E&E Engineer of the company.

Yi Lu (Mechatronic Engineer)
Graduated from Shanghai University, China in bachelor degree of
Civil Engineering. Currently pursuing a Master degree in
Engineering Management from University of Melbourne, AUS.
Have been working in Department of Project Management in
Shanghai Xian Dai Architectural Design Group, Construction &
Engineering Co. Ltd for 1year. Havingextensive experiencein
software programming, mechanical engineering and electrical
engineering.Possessing good communication, problem solving and
creative skills. The abilities to manage, maintain, develop and
design high-tech engineering systems that can automate industrial
tasks qualified him as a mechatronic engineer.

PengChen Zou (Accountant)

Graduated from the University of Melbourne, AUS with an honor in
Double Degree of Electrical and Electronics Engineering and
Accounting, and recently commenced to study Master of Finance
and Economics at Monash University, AUS. She is a Chartered
Accountant with four years working experience in project
management regarding financial matters. Due to her technical and
financial background, she is more than adequate to this job.
 Yuxi Wang (Administration)
Graduated from the Northwest Polytechnical University, China in
the year of 2003, majoring in Bachelor of Industry Engineering. In
the year of 2004, achieved Master of Electrical Engineering from
same university. Have the experiences of project management and
marketing management in Foxconn, one of largest acting work
model enterprise in China, for 6 years. Have rich experience in
negotiating with other companies and familiar with business
operation under multi-culture. She will be accountable for the
cooperation and supervisionof the suppliers of Smart Pet World in
China.Responsible for increasing the Smart Pet World's business
through marketing department, operation department, etc. based
on prediction and marketing analysis

2.2 Organisation
Chart

Figure 4. Organization Chart

2.3 Human Workforce Training: Technical Training(eHow n.d.)

Resource Our goal is to equip our employees with both the relevant skills to
Plan perform in a technological enterprise as well as a recognized
qualification. They will learn from highly qualified managers who
have extensive experience in different areas.
The company will supply new employees with reading materials
such as company manual outlining procedures and expectations.
Veterans will walk through procedures several times while
explaining each step as well as the reason behind it and have
employees perform tasks under watch to correct mistakes. Periodic
assessments will be delivered to screen qualified employees as
well.

Marketing Training
Strategy & marketing managers with extensive experience at MBA
level are the perfect mentors to deliver marketing training including
how to improve profit & sales growth, management training in
strategy & planning, and product launch for employees.
(Engineering 2010)

Headcount Projection
The company is started with 7 people in 2012. After the angel
funding round we will obtain the capital for staff training and
employment, 5 more subordinates are expected to join the team at
the end of 2013. In 2014, as we will start to put our marketing
strategy towards overseas markets, 8 more qualified staffs are
planned to be employed then.

Headcount Projection
25
20
15
Headcount
10 Projection
5
0
2012 2013 2014

Figure 5. Headcount Projection

Job Description
CEO (Chief Executive Officer)

 To supports operations and administration of a company

by giving advice and information to executive officer,
connecting between executive and staff, and supporting
executive decision.
 Supervise design, marketing, promotion, delivery and
quality of products and services.
 Advocate yearly budget with accountant for executive
approval and manages company's resources within those
budget according to government laws and regulations.
 Efficiently manages the human and financial resources of
the company according to company policies and
procedures that conform to current laws and regulations.
 Guarantees the company and its mission, vision, idea,
products and services are accessible in positive image to
stakeholders.

CTO (Chief Technology Officer)

Focused on the technological and scientific area of the
organization. The key responsibilities of the CTO are to:
 Management of research and development.
 Making sure that the designed product has enough
functions which fit the need of the customer.
 Ensuring the quality of the product.
 Oversee the production of the product and look into the
development of new products based on customer needs.

CMO (Chief Marketing Officer)

Taking care of the areas of sales management, marketing
communications (advertising and promotions), pricing, market
research, customer service, etc. is the responsibility of CMO.

 Marketing Research - Responsible for collecting and

explaining information about individuals or the whole
company using statistical and analytical methods as well
as techniques of the applied social sciences to get
perception or support decision making. And responsible
for observing people’s wants, needs or believes.
 Sales Management – Mainly about the application
of sales techniques and the management of sales
operations.
 Customer Service - Responsible for a series of activities
in order to enhance customer satisfaction.

Electronic/Electrical Engineer
 Develop and materialize the consolidation of new product
idea from marketing department into a physical working
prototype through software innovation.
 Perform software design and programming for all
conceived automation and features of pet feeder
products.
 Facilitate the development of the product software by
constantly updating the architecture and component
makeup of the new product if required.
 He/she must have at least 2 years of experience in the
electronic, electrical and software product development
industry.

Mechatronic Engineer(Planner 2002)

 Making decisions on the best solution to solveproblems

by analyzing information and evaluating results.
 Usingcomputer systems (including hardware and
software) to program, write software, set up functions,
enter data, or process information.
 Observing, receiving, and obtaining information from all
relevant sources.
 Informing supervisors, co-workers, and subordinates by
various means such as email and telephone.
 Evaluating relevant information to determine whether
events or processes comply with laws, regulations, or
standards.
 Developing specific goals and plans to prioritize, organize,
and accomplish the work.
 Identifying information by categorizing, estimating,
recognizing differences or similarities, and detecting
changes in circumstances or events.
 Compiling, coding, categorizing, calculating, tabulating,
auditing, or verifying information or data.
 Communicating with people outside the organization,
representing the organization to customers, the public,
government, and other external sources. This information
can be exchanged in person, in writing, or by telephone or
e-mail.
 Identifying the underlying principles, reasons, or facts of
information by breaking down information or data into
separate parts.

Accountant
 Review and approve accounting reports and financial
statements.
 Produce and maintain all kind of different supporting
papers. Such as receipts, bills and invoices.
 Evaluate the depreciation of company assets to reveal
their real value at end of each financial year.
 Obey taxation laws and calculate the payable tax for the
company.
 Analyze the income and the expenditure in order to offer
CEO suggestions on how to improve budget control
methods and to produce more suitable financial policies.

Administration
The Administration Officer is responsible for assisting with
financial statement’s preparation; cash control maintenance;
payroll supervision; purchasing; personnel administration;
accounts payable maintenance; office operation
management. The administration should report to the
Director of Finance. The major responsibilities and target
accomplishments expected of the position including:
 Make sure the municipal finances are maintained in a
timely and accurate manner through effective
management and strict supervise of the financial system.
 Ensure the completeness and accuracy of all money’s
record by monitor whether the accounts can be paid and
received on time.
 Make certain the accuracy of benefits payment and
allowances payment by employee files and records
administration.
 Monitor services of administration within the municipal
office
 Perform other required relative duties.
Compensation
To facilitate growth and operation of the company with (how much
is the funds or grants), the pioneers are willing to sacrifice by
starting off with low salary in the infancy of the company. In time,
when the company starts to generate substantial revenue, only
then will the pioneers take a higher salary.

Position 2011 2012 2013

CEO $2000 $3000 $4000
CTO $2000 $3000 $4000
CMO $2000 $3000 $4000
E&E Engineer $1800 $2500 $3500
Mechatronic Engineer $1800 $2500 $3500
Accountant $1500 $1800 $2500
Administrator $1200 $1500 $1800

Yearly Bonus

Senior Position 1 month contractual + profit sharing

Engineering 1 month contractual + profit sharing
Accountant 1 month contractual
Administrator 1 month contractual

Retaining Key Employees Strategy

Allocation of 5% of company shares at par to selected pioneer key
employees to become partners of the company (End of 2nd Year)

 Allocation of 5% of company shares at current premium

value and as an added incentive a discount will be given.
(End of 4th year)
 Allocation of employee stock option if company listed
thereafter.
 “Internal Venture Capital” scheme to tutor and encourage
potential key employees to become Strategic Decisions
 Group (SDG) partners. This thus will enable SDG to
venture into other related businesses and diversify.

Section 3.0 MARKETING PROGRAMS

3.1 Marketing People
Overview For Smart Pet World, the people are one of the most important
factors of marketing. This is because Smart Pet World need to
understand the 'people' which is the pet owners in this case in
order to know which product and what functionality that the pet
owners want. The other reason is because the understanding of
people would impacts the whole “image” of the company and how
it is perceived in the market place.

The other advantage of understanding what the 'people' need is to

ensure that the customer get what they need which would lead to
high satisfaction of Smart Pet World product and high satisfaction
of customer would lead to customer loyalty on Smart Pet World.
The customer loyalty would ensure a success in future sales.

Getting customer information and feedback is crucial to understand

the people in marketing. The customer information and feedback
can be collected by using social media. The example of the social
media that can be used is Facebook, Twitter, Blog, or E-mail. This
social media will be used to spread information about Smart Pet
World product and gain feedback through customer discussion and
interaction with customers. With the interaction, Smart Pet World
also could tighten its bond with customers which increase the
customers’ loyalty. This loyal customer could also function as
promoter through mouth-to-mouth communication. Smart Pet
World main.

The other 'people' that Smart Pet World has to consider is the
retailers. Smart Pet World has two types of retailers: small retailers
and large retailers. The small retailers consist of pet shop, pet
saloon, etc. while the large retailers consist of Coles, Big W, etc.
Smart Pet World must also have the loyalty from these retailers
due to their role as our main source of income and promotions.
Smart Pet World has to use price discount and direct negotiations
on these retailers to get their loyalty. The other method that could
be used is through promotion. The promotion will be in the form of
television, radio, brochure, online advertisement, etc. This
promotion would make Time to Eat to be more well-known toward
the customers which increase Smart Pet World bargaining power
with the retailers.

Price/Profit
For our product we have set some underlying assumptions. The
first is that we will buy the products from the manufacturer at a
fixed rate of $15 per unit. The price which we will sell the product
from will range from $60-70 per unit depending on the quantity the
customer has demanded. This price discrimination will hopefully
generate more revenue and publicity for us as. The more that the
supplier buys the cheaper they will get the product.

Product
Our Product Overview
Product Name: Time to Eat
This auto pet feeder will helps to feed pets at regular based with
the least effect and time from pets’ owner. Firstly, it has different
sizes and casings (i.e. recyclable plastic and recycled aluminum) to
suit individual costumers’ preferences. Secondly, both the feeding
quantity and the feeding time can be easily programmed to suit
different pets. Thirdly, other additions features (i.e. easily
assemble, light in its weight and backup battery) added to make
this product more user friendly. Finally, the using of recyclable
plastic and recycled aluminum is more sustainable and
environment friendly.

Our Product Features and Functions(Perfect Pet feeder, 2007)

 Size: can contain up to 6kg food
 Quantity of the each meal is under control
 Can be used to contain both dry and wet food
 Provides two ice packets
 Airtight hopper helps to keep food fresh
 Transparent food hopper allows to see how much food is left
 Digital Timer allows to feed pets at a specific time
 Friendly user interface and large LED display screen allow to
 set the timer easily
 Speaker and Voice recording functions will prompt pets that It
is time to eat
 Easy to install, assemble and dissemble
 Bowls can be easily removed for cleaning
 Capable to be used both indoor and outdoor
 Build – in rechargeable backup battery
 Minimum noise are introduced when working
 Recyclable plastic or aluminum are used to produce this
product
 Light weight
 One year limited warranty
 Price depends on the quantity our customer demanded(more
details in Section 4.0 FINANCIAL PROJECTION – Pricing
Policy)

Our Product Strength

By carrying out detailed market research and product development
plan, our product provides the most essential functions to meet
customer needs. By careful designing and employing new
technologies, we have reduced the total cost to its minimum which
means the price is very affordable compared with the functions it
offers. In order to reduce the impacts on the environmental and to
obtain a sustainable future, we have used recyclable plastic and
recycled aluminum.

Our Product Weaknesses

By considering the functions our product supplies, its price is very
affordable. However, there are some really cheap ‘Auto Pet
Feeders’ with fewer functions.

Future Products
 Two Years Growth Plan - Develop large automatic animal
feeding conveyor belt which can be used by farmers
 Six Years Growth Plan - Design and produce all kinds of
 products for animals. (i.e. dogs, cats, birds, fish, Reptiles and
farm animals)

Place
There are three different places that will be used by Smart Pet
World to market Time to Eat.
(1) Retailer (85%)
Time to Eat can be marketed straight to the retailer like pet shop or
Coles. This is the method with the least amount of profit. It was
caused by longer distribution chain which caused the price to
inflate when the end customers bought it. There would also be a
bigger discount from Smart Pet World to the retailer due to larger
quantity of Time to Eat bought which further diminish Smart Pet
World Smart Pet World profit. There are 2 types of retailers that
SPW has; the big retailers and the small retailers. The example of
the big retailer is Coles, Woolworth, Big W and etc. while the
example of small retailer is Aldi, pet shop, pet saloon, etc.

There will be different approach on how much item need to be

distributed on each region. In rural area, Smart Pet World had to
focus more on the big retailers due to the large amount of people
and instant lifestyle which rural people had. In suburb area, Smart
Pet World had to focus on small retailers due to closer connection
between suburban people and easy access of the local pet shop or
saloon. This difference in distribution is important to maximize
Smart Pet World ’s profit.

(2) Online Store (15%)

Time to Eat can also be marketed straight to the customers by
using online store. This method would give Smart Pet World more
profit per item compared to wholesale to retailers even though the
quantity would not be as big. The online store can be opened at
existing online store like ebay.com.au, myshopping.com.au and
etc. or Smart Pet World can open its own online store.

The sales profit per item is bigger on Smart Pet World online
store due to sales cost at existing online store but the quantity
would most likely be higher due to differences in customer’s base.
Smart Pet World has to focus on existing online store at the
beginning to promote Smart Pet World brand. Then, after the
brand is getting more well-known, the sales should be shifted bit by
bit to Smart Pet World online store.
Promotions
There are at least four different marketing tactics will be used here
in order to increase brand recognition.
(1) Word of Mouth/In-Store Marketing (32%)
The most important tactic of Smart Pet World (SPW) will be word
of mouth/in-store marketing. As a new enterprise, SPW tend to
choose this kind of tactic which means low-budget and effective.
a) Wall posters.
b) Sales brochures.
c) V.I.P. party.
d) New product trial.
e) Grand Opening celebration.
f) Yearly birthday party
g) Free receipt will be provided to pets salons or pets shop with
advertisements on the back.

(2) Local Store Marketing (28%)

Local store marketing is the second marketing tactic. This
promotion tactic is cheaper than local media and will provides
community support, expands SPW’s visibility and cultivate
customer loyalty.
a) School programs – invite relative club members to visit
the R&D Center of SPW.
b) Product appearance design competition
c) Product advertisement competition
d) Pet beauty contest
e) Dog chain with SPW’s logo.

(3) Internet Marketing (25%)

The third one is internet marketing. Through this economic money
saving tactic, the SPW could promote and sell its products online.
Many various methods, like videos, banner advertisements or
social media, can be used as online marketing promotion
 techniques.
a) Support online purchase
b) Best discounts, coupons and promo codes online
c) Send publicity material via email
d) Banner advertisements or videos
e) Exchange partners’ & SPW’s website link as resource sharing.

(4) Local Media (15%)

Local media will be the last tactic. Because of its costly features,
this tactic will only be used sparingly in SPW’s introduction phase
and supplements the necessary with the proliferation of the SPW’s
business. And in the phase of growth and maturity, once the capital
is settled down, the SPW will start an advertisement campaign to
3.2 Marketing
build its brand awareness.
Models
a) Cable TV – need enough frequency.
b) Newspaper campaign - several large ads are needed
c) Radio campaign – put ads on three local station

Marketing Model #1 (Growth Stages)

 (Animated Carton Factory)

Our main marketing objective is to license out our product design

blueprints in bulk to manufacturers. This is believed to be well
received by the manufacturers as they have all the resources but
are lacking in terms of design and technology. With this main
marketing plan, it is a win-win situation for both our company as
well as the manufacturers as costs in hardware production can be
saved as our company will only deal with the internal hardware and
software design of the product. Once the manufacturers obtain
these licenses, they can choose however they wish to packageand
market the products through their own distribution channels. The
licensing of our company’s product blueprints will be done in
packages suited to various scales of manufacturing companies.
As aforementioned in Section (1) of this report, it is also the intent
of the company to self-distribute the products and in the future,
create a brand name for the company products as well. As a
stepping stones towards this goal, we would require a stock of
manufactured products developed on our product blueprints. We
plan to achieve this stock by strengthening our existing ties with
the manufacturers who have purchased our licenses through a
deal whereby we will purchase from them 2000units of the
products they have manufactured through licenses. (approx.
valued at $60K) As for the partner, guaranteed revenue is already
being generated for them upon the completion of manufacturing.

(1) Large Scale Retailers

From a market survey regarding the “National Pet Owners
conducted by Veterinary Products Laboratories (VPL) on 2011-
2012 to gauge the market response of the new auto pet feeder
products. It was observed that there are total of 78.2 million people
owned dogs in the United States and at least 39% of households
own at least one dog.” (US Pet Ownership Statistics 2011-2012)
Through further analysis, it was found that the total female
respondents keen on buying the auto pet feeder products was
higher than their male counterparts and also these female
respondents comprised of mostly married housewives who are
concerned regarding the running of the household affair as well as
to take care of their pets dietetic compared to men. As auto pet
feeder products are products geared to ease the hectic lifestyle of
the household, these products are highly appealing to this group of
consumers. Large Scale Retailers are a sales channel activity
which is highly popular amongst housewives, thus this target
market group of housewives are seen as a channel of opportunity
for our company’s marketing expansion.

By partnering with existing established Large Scale Retailers, we

plan to sell our auto pet feeder products to these companies in a
similar fashion of how we sell our products to small scale retailers.
As many Large Scale Retailer companies such as Melbourne
Central Shopping Centre, Target, Kmart, Big W, Myer and Coles
Supermarket head in the direction of selling products which
increases the lifestyle of its customers, we believe that
partnerships with these companies are able to be sustained for a
long periods of time. Through smaller MOQs, the large-scale
retailer companies can request for stock whenever needed.

(2) Small Scale Retailers

We have also found out that small scale retailers find the MOQ by
these manufacturing companies extremely high as the MOQ is on
average by the thousands. As a result, there is a standstill in their
stock as these retailers do not require so many units for sale and
they are seeking alternative channels to obtain these auto pet
feeder products and we could be the alternative channel for them
to obtain the products with minimum MOQs.

This marketing phase will be the main but not absolute marketing
strategy. With the evolution of trends coupled with company
growth, Marketing Model #1 will be revised and updated to
generate more channels of incoming revenue. Hence, a marketing
plan has been devised to suit the company when it has firmly
established itself as a leading auto pet feeder design company on
the technological forefront and wishes to expand into the global
market. The new marketing model will incorporate the supply of
stock through contract manufacturing as well as expanded
partnerships with manufacturers on a global scale.

Marketing Model #2 (Expansion Stages)

 ( Animated Cartoon Factory) (Valentine Marc)

As the market for this product expands, we would retain all

business activities from the previous model, expansion is done by
generating more revenue through more partnerships with
manufacturers. It will then be the target of the company to target
manufacturers to become partners not only in China but also in
Eastern Europe which have plenty of factories with similarities to
their Chinese counterparts.

In due time when the company revenue is increasing by the year,

online marketing will be employed to help propel the company to
achieve exponential growth. At this point, the company will begin
efforts to attract sources of funds such as Venture Capitalists and
angel investors to contribute to this expansion.

Online Marketing (Future Model)

According to statistical analysis, the top 5 countries at Asian
Region with the highest online retail spending are Japan, South
Korea, Australia, Taiwan and Singapore. Therefore, online
marketing will be geared to focus on the consumer base in these
target countries. Apart from that, the analysis of the ‘Market Guided
Research’ conducted shows that majority of our target market is
consumers who are of the young age group (15-30 years old).
Members of this age group are identified as the highest internet
users worldwide and therefore online marketing is geared to focus
on this target group.

Through the setting up of internet domains which are relatively low

in cost coupled with free internet advertising services available on
the Internet, all efforts will be geared to increase traffic from
consumers of the aforementioned countries by increasing the
traffic flow of these consumers to our website.

This can be achieved by:

 a) Defining keywords into our website that are frequently
searched by consumers of those countries.
b) Availing our website to be translated into 4 languages, namely
Japanese, Korean, English and Chinese which are spoken by
the aforementioned countries.
c) Providing online videos of the application of each product
developed in a scenario that each culture from each country
can identify. These videos are not only uploaded on the
company website but also on free video sharing websites such
as ‘YouTube’ which receive enormous worldwide traffic
whereby catchy videos gain widespread attention and
popularity due to the ‘viral effect’ of online videos.

From the market response, consumer base locations with high

response will be identified. Warehouses will then be setup at these
locations for product storage. The reason this is done is so as to
reduce the cost of shipping whenever products are ordered. When
this phase of expansion begins to generate substantial revenue
over the years, then only will the company switch gears in full force
to create a brand for these products to increase mindshare
amongst the consumer base. At this point, our products sold
through the MLM sales channel will bear the brand of our company
only through a pre-signed contractual agreement. All this will
contribute to the goal of the company to become listed in the stock
exchange.

3.3 Survey We have 50 random people from public in Melbourne, 35 people

Analysis and (70%) of which have pets in their lives. In addition, 5 people are
Conclusion willing to have one in the future.

Through the 40 questionnaires (detailed in appendix A), most of

them (95%) are using traditional bowls to feed pets, only 2 people
are using auto pet feeder. All of them (100%) at least once have
had the problems that they couldn’t feed their pets on time.
Unfortunately, most of them didn’t hear about the auto pet feeder.
And only 30% want to buy an auto pet feeder and 50% not sure
about whether to buy or not. The functions we listed in the
questionnaires are all accepted by public to some extent,
especially the digital clock display and voice recording. From the
expectation of price of auto pet feeder, most of them (75%) are
willing to buy one under $100. The places of buying an auto feeder
 are in varied forms. The appearance of lovely and colorful cartoon
feeder is preferred by most of people who are questioned.

We have 80% of the total amount of people that we questioned

who are having pets now or willing to have pets in the future. We
are glad to say that the market of auto pet feeder is big enough for
us to make profits. From the 40 questionnaires, we can see that
not quite lots of people are familiar with ‘Auto Pet Feeder’. They
still use the traditional bowl to feed their pets, although all of them
once have the bad experiences of couldn’t feed their pets on time.
There are only 30% people who want to buy an auto pet feeder,
not very much, but we still have 50% of people who are not sure
about whether buy one of not. In this situation, we need to pay
more attention about products propaganda and promotion during
our first developing step.

Besides, it seems like the functions all can be accepted by some

amount of people, which means the different ranges of the
products are required. The price expectation is not quite low,
maybe we can try as much as possible to have the best
combination of different kinds of functions and make them in
different ranges to fulfill most of the requirements of our customers.
But since the most popular price range is under $50, in our
starting-up stage we can focus on the basic function such as
‘Analog Clock Display’, ‘Indoor & Outdoor Compatibility’, etc. which
may not have high cost and then, develop the other ranges with
higher techniques during our next stage.

The appearance of our products will be colorful and lovely, which

can fulfill most of the expectations of our future customers. Since
the places required buying a auto pet feeder are varied, we will not
only focus on supermarkets or other kinds of shops, online
shopping, which is becoming more and more popular, is another
important place for us to spread our services and products.

Section 4.0FINANCIAL PROJECTION

4.1 Financial 1. “Do-Nothing”Analysis
Overview
Do Not Widen Our Product - Consequence: The value of our
company will not increase or decrease as our existing products will
not lose sales to our new product. However, there’s possibility that
our competitors may take sales revenue from us by introducing
their own new products.

Do Widen Our Product - Consequence: There is the risk that our

new product may lose in the competition with other existing auto
pet feeders in the market. Meanwhile, the chance to derive more
revenues from the new market also exists.

2. Demand Forecast
The identification of the effective demand for an auto pet feeder is
mainly based on the results from massive short surveys. Customer
demand surveys are the best tool for getting information about our
customers. The survey can be taken by both volunteer participation
and online posted. The larger the customer sample is, the more
accurate the result of market demand will be.

Meanwhile, the customers are categorized by elements such as

age, gender, religion and income to know their background and
their willingness to pay for our proposed auto pet feeder. The
survey should reveal the demographic groups that are inclined
towards using our service and specify exactly how many
customers will be willing to pay any given price for our new
product.

Price Unit Sold/month Unit Sold/month

25 875 Price
30 765 65 465
35 710 70 300
40 630 75 210
45 600 80 135
50 580 85 110
55 540 90 100
60 500 95 90
100 85
 Figure X. The Demand Curve of ‘Time To Eat’ Auto Pet Feeder

3. Pricing Policy
The price of the product is discriminated according to the quantity
sold and the scale of a seller. A retailer orders in bulk and is able to
purchase a high number of the same items at once may get a
discounted rate. Same with the manufacturer who requires
authority to produce more, the price for each license tends to be
cheaper. The price discrimination also depends on the selling
platforms, prices at online market is higher as it includes shipping
fees. Different packages not only offer our buyers more flexibility
by giving them multiple choices, but also provide us with detailed
information to forecast our revenues more accurately.

4. Forecast of Revenues and Costs

Note: Financial calculation is detailed in Appendix C

3 Year Overheads Investment

3 Year Cash Flow

5. Identification of Sunk Costs

Sunk costs are considered to be:
 Marketing investment
 R&D investment
 Office start-up investment

To avoid the sunk cost dilemma, the cost management theory will
be applied to the implementation of the investment plan. Cost
management involves estimating the final cost of the project using
“today’s” knowledge then adding a contingency amount to allow for
the risk of changes and/or new knowledge that will occur from
“today” until the final completion of the project.

Besides, Earned Value Techniques can also be introduced as an

actual measurement of the current process in terms of time and
cost. By comparing the value of work done with the value of work
that should have been done, it provides a basis for consistent
analysis of process performance.

6. Salvage Value
 Office equipment and furniture can be sold in 2 ndhand
markets.
 Unused raw materials can be resold to other
manufacturers.

7. Possible Risks(SKANSKA n.d.)

 Market Risks
o Interest rate risk: the risk that changes in interest rates will
affect the company’s future earnings and cash flow.
o Foreign exchange risk: the risk of negative impact on the
company’s income statement and statement of financial
position due to fluctuations in exchange rates.
 Liquidity Risk
o The risk that our company cannot meet its payment
obligations due to lack of liquidity or to difficulties in
obtaining or rolling over external loans.
 Credit Risks
o Financial risk: the risk that the company runs in its
 relations with financial counterparties in the case of
deposits of surplus funds, bank account balances and
investments in financial assets.
o Customer credit risk: trade receivables has a high degree
of risk diversification, due to the large number of projects
of varying sizes and types with numerous different
customer categories in a large number of geographic
markets.

8. Actual Cash Flow

1,600,000
Cumulative Cash Flow
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
-200,000 012 012 012 012 013 013 013 013 014 014 014 014
/2 /2 /2 /2 r/2 n/2 p/2 c/2 r/2 n/2 p/2 c/2
-400,000ar Jun Sep Dec a u e e a u e e
n-M pr- ul- ct- n-M pr-J ul-S ct-D n-M pr-J ul-S ct-D
Ja A J O Ja A J O Ja A J O
Cumlative Cash Flow

Figure X. Cumulative Cash Flow

The chart above represents the cumulative cash flow in the 3 years
operation. For a detailed table please refer to Appendix A. At the
third quarter of the first year it is expected to reach the breakeven
point which means we will be able to stop asking for more money
and begin to pay our investors back. Besides, payback point will be
achieved at the end of first year as the revenue is considerable.

9. Funding Analysis
In the first year we need $400,000 to cover our upfront costs of
sales and overheads. As mentioned in the financial strategy
section, we will apply for government funding programs at first
while looking for angel investors during the pre-seed and seed
round. After our company enters the market, we plan to get
introduced to venture capital firms for further funding rounds.

10. Discounted Cash Flow

1,600,000.00
NPV
1,400,000.00
1,200,000.00
1,000,000.00
800,000.00
600,000.00
400,000.00
200,000.00
0.00
-200,000.00 00% 00% 00% 00% 00% 00% 00% 00% 64% 00% 00% 00%
0. 2. 5 . 10 . 15 . 20 . 25 . 30 . 34 . 3 5 . 4 0 . 4 5 .
NPV

Figure X. Discounted Cash Flow

The chart above illustrated the flow of Net Present Value (NPV) as
a function of Rate of Return. (detailed in appendix X) Assuming the
rate of return (r) is 5% per 3 months, accordingly the net present
value will be $865,582 which is very desirable value to the
company. On the contrary, when the NPV of the business plan is
zero, the value of Rate of Return, also known as the Internal Rate
of Return (IRR), is calculated to be 34.64%.
4.2 Financial 3 Year Profit / Loss Projection
Development
of Expenses
over 3 Years

Our business revenue will only be obtained during 3/4 of year

2012. Therefore, initially we will require shareholders’ investment
and loan from government programs to cover the total expenses
which is about $400K.It is impossible for us to start up with 'zero'
investment, thus we would require to invest and obtain loan from
government programs to sustain our business before our first
revenue be received around end of the year 2012.
In Conclusion,
Payback of LoanQ4/4 of Year 2012 can be achieved.
Return of Investment (ROI) Q1/4 of Year 2013 can be achieved.
Section 5.0 RISK MANAGEMENT
5.1 Risks Risk is determined by analyzing the likelihood and consequence. There are three evaluation tools
Assessment required to assess risk.
1. Likelihood scale
2. Consequence scale
3. Risk matrix

Table 6.1: Likelihood scale(Department of the Environment and Heritage & Australian Greenhouse
Office 2006)
Recurrent Risk Single Event
Almost Could occur several times per More likely than not – probability > 50%
certain year
Likely May arise about once a year As likely as not – 50/50 chance
Possible May arise once in ten years Less likely than not but still appreciable – probability less
than 50% but still quite high
Unlikely May arise once in ten years to Unlikely but not negligible – probability low but
25 years noticeable greater than zero

Rare Unlikely during the next 25 Negligible – probability low, close to zero
years

Page | 59
Table 6.2: Consequence Scale(DEH & AGO 2006)
Severity Consequence Types
Level Profit Health and Safety Natural Reputation Legal
Reduction environment
Severe A$500,000 Multiple fatalities, Very serious, Serious public or Significant
to A$1m or significant long-term media coverage prosecution and
irreversible effects environmental fines. Very
to > 10 persons impact serious litigation
including class
actions
Major $A200,000 Single fatality Serious, long- Significant Major breach of
to and/or severe term adverse national regulation. Major
A$500,000 irreversible environmental media attention litigation.
disability (>30%) to impact
one or more
persons
Moderate A$100,000 Moderate Serious medium Moderate Serious breach of
to irreversible term national media regulation with
A$200,000 disability or environmental attention investigation or
impairment (<30%) effects report to authority
to one or more with prosecution
persons and/or moderate
fine possible
Minor A$10,000 to Objective but Moderate, short- Attention from Minor legal
A$100,000 reversible disability term effects but media and/or issues, non-

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 requiring not affecting heightened compliances and
hospitalization ecosystem concern by local breaches of
functions community. regulation
Negligibl <A$10,000 No medical Minor effects on Minor, adverse No legal issues,
e treatment required biological of local public or but minor non-
physical media attention compliances and
environment or complaints. breaches of
regulation

Table 6.3.1: Risk matrix(DEH & AGO 2006)

Likelihood Consequences
Negligibl Minor Moderat Major Severe
e e
Almost M H H E E
certain
Likely M M H H E
Possible L M M H H
Unlikely L M M M H
Rare L L M M H

Table 6.3.2: Rating risk level(DEH & AGO 2006)

(E) Extreme risk – detailed action/plan
required
Rating Risk
(H High risk – needs senior management
Level:
)
(M Moderate risk – specify management

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 ) responsibility
(L) Low risk-manage by routine procedures

Once the risk has identified and evaluated, the risk treatment should be done. Here is hierarchy for risk
treatment.
1. Avoid: discontinue or don’t start the risky activity
2. Prevent/Control: remove the source of the risk
3. Reduce/Mitigate: change the likelihood and /or consequence
4. Transfer/Share: share with other parties (e.g. insurance)
5. Retain/Accept: make the informed decision to live with it
Product Risks

Risk
Number Risk in Detail Likelihood Consequences Recovery Action
Level
Moderate
Sufficient market survey
Changing customer product Success strategy brings is a key for a success
1 Possible profits, while failure Moderate Accept
strategy customer product
strategy means loss strategy.
money.
Incorrect application of Moderate
Double-check to avoid
2 process tailoring and Possible High unqualified products Moderate Avoid
this mistake.
deviation guidelines rate.
3 Damage in storage Possible Minor Moderate Prevent Try to avoid such thing
Low cost if losing products happen and make a

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 in this way.
Delay in getting approval for Major
some of the work products
4 Likely Increasing cost of time,
from the customer or more
money and opportunity.
requirement changes
Moderate
Lose the benefit by
Risk of counterfeit counterfeit
5 Likely
products/tampering products/tampering, so
does the reputation of the
SPW.
guide for staff.
Serious analysis and
High Prevent efficient communication
with customer needs.
Add an anti-fake label
on the SPW’s product
High ‘Prevent to help customers
identify the SPW’s
products.

Business Risks

Likelihoo Risk
Number Risk in Detail Consequences Recovery Action
d Level
Employees need more
Failure to address Severe training. More
priority conflicts between
1 Possible This risk may even lead to Extreme Prevent communication needed
SPW and employees or
suspend of producing. between SPW and
suppliers or customers
customers /suppliers.
No proper subject Major Make rules and well training
training for designer or
2 Unlikely Potential safety hazard and Moderate Mitigate staff. More strict when
customer services
inefficient product feedback. employing.
employees.
3 Insufficient resources for unlikely Major Moderate Prevent Inventory control

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 High cost of time, produce
manufacture or supply to
delay, opposite effect on
customers.
reputation.
Severe
Non-availability of
High cost of time, produce Always consult with a
contracts or purchase
4 Rare delay, opposite effect on High Avoid reliable lawyer before
order at the start of the
reputation and might involve signing a contract.
project
in legal issue

Major Make a scenario plan for

inflation to prevent cash flow
6 Unexpected inflation Unlikely High price of raw material, Moderate Prevent
fracture, improve techniques
high labor cost & reduce cost.

Technical Risks

Likelihoo Risk
Number Risk in Detail Consequences Recovery Action
d Level
Severe
Using new technique may need new
production line which means Always pay attention
A new technology
increased costs. New training which to new technique,
1 emerges and changes Unlikely High Accept
can also take a long time and cost a keep pace with it, and
customers’ life.
lot, however, does if we do not use update it on time.
new techniques we can be driven
out of the market sooner or later.
2 Database crash Unlikely Major Moderate Prevent Although database
All the information lost. Need time to crash is a big

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 rebuild a new database. May miss
problem, back up the
opportunities in this process.
date on a regular
Inconvenient in the management of
basis can prevent this
customers, employees, storage,
risk effectively.
delivery, suppliers and so on.
Strengthen security,
Major
Customers and make a clear
The competitors may use those date mandate to implement
3 personal/business Likely Moderate Prevent
to connect with customers and the responsibility.
data have been stolen
stolen customers in this way.

The company’s Moderate

Double-check the plan
architectural design Have to built another architectural to
4 Unlikely Moderate Avoid of design by a long-
lack of ability of use, which cost a lot or use the
term foresight.
function extension original one but inconvenient.

People Risks

Risk
Number Risk in Detail Likelihood Consequences Recovery Action
Level
Major Make a clear mandate to
Corruption has a bad effect on implement the responsibility
1 Corruption Likely the SPW’s reputation and also High Prevent under a system of prize-
will influence the profits of the winning report to prevent the
SPW. occurrence of corruption.
2 Lack of Possible Moderate Moderate Mitigate Have a regular meeting
Management May lead to resource waste in every week to change the
Experience & the process and cannot run information and experience
Program Interfaces efficiently under this kind of between project leaders.

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organization structure.
new employees Moderate
allocated to the May lead to low work efficiency
3 project not trained Possible and easy to make mistake,
in the quality which against the company
processes interest.
Minor
Profits will be influenced by
whether the new police is good
Government rule
4 Possible news for the SPW (subsides for
changes,
green product) or bad news
(increase in minimum wage of
employees).
Also ask advices from
consultants if needed.
More strict training is
needed. Unless employees
Moderate Avoid can pass the final exam,
they can be allocated to a
project.
The SPW cannot change
the rule. The only thing SPW
Moderate Accept
can do is adjustment and
adaptation.

Section 6.0 REFERENECES

Alexadry n.d., The Best Pet Automatic Feeders for Pet Owners, HubPages, viewed 17 March, 2012,
<http://alexadry.hubpages.com/hub/The-Best-Pet-Auto-Feeders-for-Pet-Owners>.

Allinger, N. L. 1977. Conformational analysis. 130. MM2. A hydrocarbon force field utilizing V1 and V2 torsional terms, Journal of
the American Chemical Society 99(25): 8127-8134.

Animated Cartoon Factory, viewed 1 April, 2012, <http://www.brianlemay.com/>.

Best Dog Sitter Dog Boarding In Salt Lake City, Utah Affordable In Home, Discover the Advantages of Having a Pet Automatic
Feeder, viewed 10 April, 2012, <http://bestdogsitter.com/discover-the-advantages-of-having-a-pet-automatic-feeder>.

C3E, Commercialization Financing, viewed 02 April, 2012, <http://www.c3e.ca/en/financement-commercialisation>.

Page | 62
Department of the Environment and Heritage & Australian Greenhouse Office 2006, Climate Change Impacts & Risk Management.
Australian Greenhouse Office, Canberra.

eHow, How to Train Employees, viewed 04 April, 2012, <http://www.ehow.com/how_2104694_train-employees.html>.

Engineering, L 2010, Market Training, viewed 28 March, 2012, <http://www.launchengineering.com/MarketingTraining.htm>.

Entrepreneurs, 2012, Exit Strategies for Your Business, viewed 27th March, 2012, <http://www.entrepreneur.com/article/78512>.

Entrepreneurs, 2012a, Exit Strategies for Short-Term Involvement, viewed 27th March, 2012,
<http://entrepreneurs.about.com/od/businessplan/a/exitstrategy.htm>.

Entrepreneurs, 2012b, Exit Strategies for Long-Term Involvement, viewed 27th March, 2012,
<http://entrepreneurs.about.com/od/businessplan/a/exitstrategy.htm>.

Ethical Consumer Guide, 2012, SUPERMARKETS IN AUSTRALIA, viewed

15 March, 2012, <http://www.ethical.org.au/issues/?issue=16>.

Facts and Details 2011, Dogs in China, viewed 28 March, 2012, <http://factsanddetails.com/china.php?
itemid=266&catid=12&subcatid=81>.

Graham, P 2005, How to Fund a Startup, viewed 10 March, 2012, <http://paulgraham.com/startupfunding.html>.

Human Society, US Pet Ownership Statistics 2011-2012, viewed 15 March, 2012,

<http://www.humanesociety.org/issues/pet_overpopulation/facts/pet_ownership_statistics.html>.

IAMA 1975, The Institute of Arbitrators & Mediators Australia (IAMA), viewed 09 March, 2012,
<http://www.iama.org.au/index.html>.

Perfect Petfeeder 2007, Everything you want to in an automatic pet feeder, viewed 8 April, 2012,
<http://www.perfectpetfeeder.com/>.

Planner, C 2002, Mechanical Engineer Job Description, viewed 04 March, 2012,

Page | 62
 <http://job-descriptions.careerplanner.com/Mechanical-Engineers.cfm>.

RSPCA 2010, How many people own pets in Australia, viewed 28 March, 2012, <http://kb.rspca.org.au/How-many-people-own-
pets-in-Australia_58.html>.

SKANSKA, Financial risk management, viewed 01 April, 2012,

<http://www.skanska.com/en/Investors/Financial-information/Financial-Risk-Management/>.

Standards Australia International Limited 2004, Risk management: AS/NZS 4360:2004, Standards Australia International,
Wellington N.Z., Standards New Zealand, Sydney.

Valentine Marc, Save Money In Your Internet Business, viewed 1 April, 2012, <http://marcvalentine.com/>.

Yuen, K, M. 2010, How to Choose the Best Automatic Pet Feeder, viewed 10 April, 2012, <http://yuen-kit-mun.suite101.com/how-
to-choose-the-best-automatic-pet-feeder>.

// Sarah don’t know what is this, will ask by email!!!!!!!!!!!!!!

SAIL – seeStandards Australia International Limited
DEH – seeDepartment of the Environment and Heritage
AGO - seeAustralian Greenhouse Office

Page | 62
Section 7.0 APPENDIXES
Appendix A - Survey Result
1. Do you have pets?
(A) Yes - to Q3 (70%)
(B) No - to Q2 (30%)
70%

70%
60%
50% 30%
40%
30%
20%
10%
0%
Yes No

2. Are you willing to have pets?

(A) Yes - Proceed (50%)
(B) No - Thanks for your anticipation (50%)
50% 50%

50%
40%
30%
20%
10%
0%
Yes No

3. What kind of feeder do you usually use?

(A) Bowl (95%)
(B) Other - Please state: Automatic pet feeder (5%)
95%

100%
80%
60%
40% 5%
20%
0%
Traditional bowl Other

Page | 59
4. Have you ever forgotten to feed your pets/struggle to feed them on time?
(A) Yes (100%)
(B) No (0)
1

100%
90%
80%
70%
60%
50%
40%
30% 0
20%
10%
0%
Yes No

5. Have you ever heard of ‘Automatic pet feeder’? By what means?

(A) Yes (10%) - Please state: Online, from friends
(B) No (90%)
90%

100%
80%
60%
10%
40%
20%
0%
Yes. Online, from friends No

6. Would you like to buy one?

(A) Yes (30%)
(B) No (20%)
(C) Not sure (50%)

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 50%

50%
40% 30%

30% 20%

20%
10%
0%
Yes No Not sure

7. What functions would you like to have in the feeder? (You can choose more
than one.)
(A) Analog Clock Display (85%)
(B) Voice Recording (65%)
(C) Indoor & Outdoor Compatibility (60%)
(D) Cooling System (30%)
85%
90%
80% 65%
70% 60%
60%
50%
40% 30%
30%
20%
10%
0%

8. How much you willing to pay for your ideal automatic pet feeder?
(A) $150-200 (5%)
(B) $100-150 (20
(C) $50-100 (35%)
(D) Under $50 (40%)

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 40%
40% 35%
35%
30%
25% 20%
20%
15%
10% 5%
5%
0%
$150-200 $100-150 $50-100 Under $50

9. Where would you like to buy the feeder? (You can choose more than one.)
(A) Supermarkets (97.5%)
(B) Home appliance stores (95%)
(C) Pet’s appliance shops (85%)
(D) Online (95%)
97.5% 95% 95%
100.00% 85%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

10. What is your favorite appearance of the feeder? (Cartoon type, metallic,
etc.)
(A) Colorful Cartoon (70%)
(B) Shiny metallic (20%)

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(C) I don’t care (10%)
70%

70%

60%

50%

40%

30% 20%

20% 10%

10%

0%
Colorful Cartoon Shiny metallic I don’t care

Page | 62
Appendix B–Accountability Tables
For Company

Accountability Table

Category Task Description Responsible Accountable Consulted Informed Approve

Administration

Manage and keep meeting minutes,

Documentation management details of events, business plans and Administrator CEO CEO
contracts, and other documents

Scheduling tasks Task allocation and schedule planning Administrator CEO CEO
Upgrade software to computers in the Mechatronic
Deploying and upgrading software Electrical Engineer CTO CTO
company Engineer
All
Ordering supplies and equipment Oder appropriate equipments Administrator CEO
executives

Research & Development

Researching the product according to

Research and make survey Engineer CTO CTO
allocated budget
Ensuring the new product meets the
Product maintenance and
product specification according to Engineer CTO CTO
enhancement
customers' feedback

Developing the product to comply with

Quality and regulatory compliance regulatory requirements and specified Engineer CTO CTO
quality levels

Marketing

Definition of focus group Choose the right audience Administrator CMO CEO CMO

Retail Strategy Categories the retailers of our product Administrator CMO CEO CMO

Promotion of the product Advertising Administrator CMO CEO CMO

Page | 59
 Accountability Table Continued

Category Task Description Responsible Accountable Consulted Informed Approve

Finance

Keep a cash book and update it regularly

Make sure adequate documentation is available to
Book-keeping support all income and expenditure Accountant CEO CMO CMO CEO
Provide monthly cash flow reports

Be responsible for office cash and keeping it safe

Prepare cheques from invoices and payment requests
Cash and bank handling Accountant CEO CMO CMO CEO
Manage the funds in the bank account(s) including
transfers
Review and introduce new accounting and financial
control systems
Audit operational projects and arrange for external audit
Accounting/financial control as required Accountant CEO CMO CMO CEO
Make sure audit recommendations are discussed and
implemented Interpret financial information for non-
accountants
Human Resource

Staff training Training Employees Administrator CMO CEO CMO

Staff Recruitment Recruitment Administrator CMO CEO CMO

Promotions Including Bonuses Administrator CMO CEO CMO CEO

Operation

Transportation and Distribution Monitor the delivery of product Engineer CTO CEO CTO

Storing Check product stock regularly Engineer CTO CEO CTO

Page | 62
For Pioneers
Business Plan Tasks
Company Background
Business Intent
Growth Strategies
Long Term Goals of Company
Market and Competitors Information
Five Forces
SWOT Analysis
Management Team
Organisation Chart
Human Resource Plan
Human Resource Plan - Job Description
Human Resource Plan - Compensation
Human Resource Plan - Yearly Bonus
Human Resource Plan - Retaining Key
Employees Strategy
Market Overview - People
Market Overview - Price/Profit
Market Overview - Product
Market Overview - Place
Market Overview - Promotions
Marketing Models
Marketing Programs
Financial Overview
Risks Management
Accountability Tables
Explanations: R - Responsible, A - Accountable, C - Consulted, I - Informed and X - The Approver. Members, who are chosen to be C, have a good understanding of that particular
tasks; the secretary will always be informed (I) about the progress of each tasks, unless she is responsible for that task; Two members are chosen to approve (X) all the tasks involved
Accountability Table for Pioneers
Team Members
YEOH HUEY YOSHUA YI LU FENG SHENG YU XI WANG PENG CHEN ZOU
TONY SONG
LING (MARY) NATAADMADJA (LEON) (BERTHA) (CRYSTAL) (SARAH)
C X     A   I
C X   A     I
C X A       I
A X       C I
R&C R R R X I A
  C     X A I
C       X   A
R R&C R R R&X A R
A   C   X   I
C X A       I
A R&C R R X R R
A X     C   I
A   C   X   I
A     C X   I
  A C   X   I
  X     A C I
  X C       A
  A     X C I
  X   C   A I
A       X C I
C     R X   I
  C&X A C R   I
C X       A I
A R&X R R R R&C R
in this assignment
Page | 62
Appendix C– Financial
1. Product Prototype Forecast (Cost per Unit)

The total costs including suck costs and variable costs are categorized as following:

2. Headcount Investment Projection

Page | 59
3. Office Startup & Maintenance Investment

Page | 62
4. Financial Services Expenses
At the end of each business year, accountants will be hired to audit company financials.

5. Research and Development Investment

Page | 62
6. Marketing Investment

Page | 62
7. Product Manufacturing Costs

8. Projected Revenues

Page | 62
 Appendix D – Risk Analysis

As an essential activity of project management, risk management can helps the

SPW to ensure levels of risk and uncertainty are properly managed, any potential
threat to the outputs delivery(Standards Australia International Limited 2004) are
known by the SPW, and the project is completed successfully.

Monitor and review

Establish the context

Identify risks

Analyze risks
Communicate and consult

Evaluate risks

Treat risks

Figure A.d.1: Risk management process (SAIL, 2004)

A framework of risk management process under hazard is provides by the risk

management standard AS/NZs 4360:2004. As outlined in the standard, the
broader steps of the risk management are shown in Figure A.d.1(SAIL, 2004).

The first step of risk management is risk identification. There are at five direct
techniques can be used here, such as brainstorming, document reviews, Delphi
technique, interviews, and SWOT Analysis. In additional, there are three
supportive methods such ascheck lists, assumption analysis and diagramming
techniques.

Page | 62
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In the process of risk identification, there are four categories of risks: Product
Risks, Business Risks, Technical Risks, and People Risks. Below is some
examples, the detail information is in the Appendix.

Page | 62
Page | 62
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