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FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES

DIPLOMA IN PUBLIC ADMINISTRATION [AM110]

BIO-KANA MANUFACTURING
BUSINESS PLAN (A3)

Prepared By
MOHAMAD SHAHANIL BIN MOHD IESA 2018277538 AM1105E
SITI NURDZAHRATULAIL BINTI ADRES 2018278876 AM1105E
MUHAMMAD ARIF BIN ZULKIPLI 2018270484 AM1105E
NUR AMIZA BINTI RAHMAN 2018247686 AM1105E
NUR AMIRA BINTI AZMAN 2018445112 AM1105E

Prepared For
MADAM VLOREEN NITY ANAK MATHEW

Submission Date
22nd JANUARY 2021

Subject
FUNDAMENTALS OF ENTREPRENEURSHIP – ENT300

TRANSPARENT, CRUELTY-FREE, HIGH QUALITY

 TABLE OF CONTENT

ACKNOWLEDGEMENT ...................................................................................................... i
EXECUTIVE SUMMARY ................................................................................................... ii
1.0 INTRODUCTION ...................................................................................................... 1
2.0 PURPOSE OF PREPARING A BUSINESS PLAN .................................................... 2
3.0 COMPANY BACKGROUND.................................................................................... 3
4.0 BACKGROUND OF OWNER ................................................................................... 4
4.1 General Manager ..................................................................................................... 4
4.2 Administrative Manager .......................................................................................... 5
4.3 Marketing Manager ................................................................................................. 6
4.4 Operation Manager ................................................................................................. 7
4.5 Financial Manager .................................................................................................. 8
5.0 BACKGROUND OF PROPOSED PROJECT ............................................................ 9
5.1 Price of Premise/ Cost of Rental Per Month ............................................................ 9
5.2 Distance from the Source of Raw Materials............................................................. 9
5.3 Availability of Manpower ....................................................................................... 9
5.4 Transportation Facilities ........................................................................................ 10
5.5 Distance from Customer ........................................................................................ 10
5.6 Basic Amenities .................................................................................................... 10
5.7 Physical Location of The Project ........................................................................... 11
5.8 Building ................................................................................................................ 11
6.0 ADMINISTRATION PLAN..................................................................................... 13
6.1 Organization Mission, Vision, and Objectives ....................................................... 13
6.2 Organizational Chart ............................................................................................. 15
6.3 Administration Manpower Planning ...................................................................... 16
6.4 Schedule of Tasks and Responsibilities ................................................................. 16
6.5 Schedule of Remunerations ................................................................................... 18
6.6 Other Compensation and Benefits ......................................................................... 19
6.7 List of Office Furniture and Fittings ...................................................................... 20
6.8 List of Office Equipment ....................................................................................... 20
6.9 List of Vehicles ..................................................................................................... 20
6.10 Utilities ................................................................................................................. 21
6.11 List of Office Supplies .......................................................................................... 21
6.12 Organizational / Administration Budget ................................................................ 22
7.0 MARKETING PLAN ............................................................................................... 24
7.1 Product Description............................................................................................... 24
7.2 Target Market ....................................................................................................... 26
7.3 Market Size ........................................................................................................... 27
7.4 Competitor ............................................................................................................ 28
7.5 Market Share......................................................................................................... 31
7.6 Sales Forecasting .................................................................................................. 33
7.7 Marketing Strategy................................................................................................ 34
7.8 Marketing Budget ................................................................................................. 38
8.0 OPERATIONAL PLAN ........................................................................................... 40
8.1 Process Planning ................................................................................................... 41
8.2 Operations Layout ................................................................................................. 42
8.3 Production Planning .............................................................................................. 44
8.4 Material Planning (Monthly) ................................................................................. 45
8.5 Machine and Equipment Planning ......................................................................... 46
8.6 Manpower Planning .............................................................................................. 47
8.7 Schedule of Task and Responsibilities ................................................................... 47
8.8 Schedule of Remuneration .................................................................................... 49
8.9 Overheads Requirement ........................................................................................ 50
8.10 Location ................................................................................................................ 50
8.11 Operations Hour .................................................................................................... 51
8.12 License, Permits, and Regulations Required .......................................................... 51
8.13 Operational Budget ............................................................................................... 55
8.14 Implementation Schedule ...................................................................................... 56
9.0 FINANCIAL PLAN ................................................................................................. 59
9.1 Project Implementation Cost and Source of Finance .............................................. 60
9.2 Pro Forma Cash Flow Statement ........................................................................... 61
9.3 Pro Forma Income Statement ................................................................................ 63
9.4 Pro Forma Balance Sheet ...................................................................................... 64
9.5 Financial Analysis ................................................................................................. 66
10.0 CONCLUSION ........................................................................................................ 68
REFERENCES ................................................................................................................... 69
APPENDICIES ................................................................................................................... 71
Appendix 1: Business Logo ............................................................................................. 71
Appendix 2: Product Photo .............................................................................................. 71
Appendix 3: Business Licenses and Regulations .............................................................. 72
Appendix 4: Business Model Canvas ............................................................................... 76
Appendix 5: Turnitin Report ............................................................................................ 77

List of Figures
Figures Page
Figure 1: Organizational Chart 15
Figure 2: Pie chart of Market Share Before Bio-Kana Supplement Entry 31
Figure 3: Pie chart of Market Share After Bio-Kana Supplement Entry 32
Figure 4: Manufacturing Factory (level 1) 42
Figure 5: Administration Office (level 2) 43
Figure 6: Gantt Chart 57
Figure 7: Project Implementation Cost & Source of Finance 60
Figure 8: Pro Forma Cash Flow Statement 61
Figure 9: Pro Forma Income Statement 63
Figure 10: Pro Forma Balance Sheet 64
Figure 11: Financial Analysis 66

List of Tables
Tables Page
Table 1: Position and number of administrative personnel 16
Table 2: Schedule of Administration Task & Responsibilities 16
Table 3: Schedule of Administration Remuneration 18
Table 4: List of Office Furniture and Fittings 20
Table 5: List of Office Equipment 20
Table 6: List of Vehicles 20
Table 7: List of Utilities Bills 21
Table 8: List of Office Supplies 21
Table 9: Administration Budget 22
Table 10: Market Size in Number 27
Table 11: The analysis of the Competitor’s Strength 29
Table 12: The Analysis of Bio-Kana Manufacturing 30
Table 13: Market Share Before Entry 31
Table 14: Market Share After Entry 32
Table 15: Schedule of Sales Forecasting 33
Table 16: The Marketing Budget 38
Table 17: Material Planning (Monthly) 45
Table 18: Bills of Material for 1 bottle 45
Table 19: Machine and Equipment Planning 46
Table 20: Position and number of operational personnel 47
Table 21: Schedule of Task and Responsibilities of Operational 47
Personnel
Table 22: Schedule of Remuneration 49
Table 23: Overhead Cost 50
Table 24: Operational Budget of Bio-Kana Manufacturing 55
Table 25: Implementation Schedule 56
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ACKNOWLEDGEMENT

Alhamdulillah,

In the world of no boundaries where there is a race of existence in which those having will to
come forward succeed. The analogy of project could be seen just like a bridge that linked the
theoretical and practical working.

First of all, we would like to thank to the most supreme power after all the Almighty God who
is significantly the one who always guided us to the light before the tunnel while completing
this project.

Apart from that, a huge appreciation to our parents, families, and friends who always becoming
our backbone by supporting us either mentally or physically throughout accomplishing this
task.

We are feeling oblige in taking this opportunity to sincerely thanks to Madam Vloreen Nity
anak Mathew, our entrepreneurship lecturer who always gives guidance without feeling tired
and weary throughout this semester despite the issue of Pandemic of COVID-19 that has been
affecting the education field as a whole.

Although there are a lot of obstacles and challenges that we faced during completing this
assessment, we feel very grateful to have this kind of group member which always helping
each other without complaining but instead struggling to make sure everyone of us is inline
while doing this task.

Last but not least, a big applause to those who had involved and contributed directly or
indirectly to this business plan. Without them, we believe this assessment could not be as
perfect as it is now.
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EXECUTIVE SUMMARY

Bio-Kana Manufacturing was founded in 2020. Our mission is to create a health awareness
towards Malaysia people by manufacturing a transparent, cruelty-free, and organic product to
its consumer along with the benefits that has been guaranteed. Meanwhile, our vision is to
become the leading local dietary supplement manufacturer that inspires healthier societies by
linking people to real food. Moreover, our principles office is located at Lot 33A, Jalan Tapah
Sibu in Sarawak.

Bio-Kana is the first leading local business of producing health and dietary supplements namely
Bio-Kana Dabai Health Supplement by using Dabai fruits which scientifically known as
Canarium Odontophyllum. Presently, our health supplement is in the growth stage. In fact, it
competes primarily based on the quality of Dabai fruits which is well known for its high total
of anthocyanin as compared to other extraction solvent. Thus, Dabai pulp had been studied for
their antioxidative properties which is suitable to be consumed daily as a dietary supplement.

In addition, we managed to receive the capital amounting RM250,000 to start up this business.

Bio-Kana Health Supplement is manufactured in the form of soft gel capsules which able to
restore the goodness of antioxidant in the product which indirectly prolonged the life of the
product. However, we have a competitive advantage because of our speed to market and well-
known local health supplement manufacturer. Therefore, we do not anticipate new companies
to enter this market.

Apart from that, the great risk associated with our business today is the high cost of raw material
(Dabai) since it is considered as seasonal fruit. Nevertheless, we feel we can overcome this risk
because we do have our special supplier which directly supply the Dabai fruit in a sufficient
amount.

Bio-Kana’s management teams is led by Mohamad Shahanil Iesa as the founder and also act
as general manager. On the other hand, the backbone of this company also being supported by
Muhammad Arif Zulkipli as the operational manager, Siti Nurdzahratulail Adres as the
financial manager, Nur Amiza Rahman as the marketing manager, and lastly Nur Amira Azman
act as the administration manager.
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1.0 INTRODUCTION

i. Name of the business : BIO-KANA MANUFACTURING

ii. Nature of business : Manufacturing

iii. Industry profile : Secondary Sector

iv. Business Location : Lot 33A, Jalan Tapah, 96000, Sibu, Sarawak.

v. Date of commencement : 1st January 2022

vi. Factors in selecting the proposed business:

a) To create a public awareness about taking care of their inner health

b) To enhance the benefits of Dabai fruits for supporting human general health.
c) To promote the uniqueness of Borneo local fruits in the global market.

vii. Future prospects of the business:

a) Business Networking

Bio-Kana Manufacturing has a ton of business networking as an essential part

for our company to deal with other entrepreneurs which indirectly building up
the company’s link with another business, especially in Sarawak. Therefore, this
action could help our company to be as par as other local manufacturer or even
higher.

b) Customer Referrals

Bio-Kana Manufacturing is making our existed customer to become the brand

ambassador. This is due to the cost of retaining a customer us much lower than
that of acquiring a new one. In fact, loyal customers tend to buy more and spend
more. Thus, our company will try to treat the customers well the intention they
will recommend our product to the future customers.
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2.0 PURPOSE OF PREPARING A BUSINESS PLAN

The main purpose of preparing this Business Plan is to be act as the first step
module and pathway before starting an actual business. This Business Plan is very
crucial to a new establish company just like BIO-KANA MANUFACTURING
because it may assist our company to sustain longer in the business field especially in
Malaysia market.

The purpose of doing this business are:

i. To show the financial strength of the company especially when applying for
loans and to convince any relevant parties in term of investment potential of
the project.

ii. To allow the entrepreneur to view and evaluate the proposed business venture
in an objective, critical, and practical manner. Which giving an opportunity for
this company to succeed in the arena of business.

iii. As a guideline for our company in setting, planning, managing, handling, and
controlling our business for day-to-day management, strategies, financial
forecast, budget, target market as well as our long-term goal.

iv. As a master plan for our company to analyse and calculate the effectiveness on
running such business.

v. To improve any possible weaknesses, arise by comparing the performance of

the business with the actual master plan so that we can track our companies’
performance from time to time.

vi. To convince our future suppliers the ability of our business to pay back on credit
in any situation especially when dealing with the restocking process for our raw
materials.
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3.0 COMPANY BACKGROUND

Bio-Kana Manufacturing company’s background is stated as follows:

i. Name of the Business/Company : Bio-Kana Manufacturing

ii. Address : Lot 33A, Jalan Tapah, 96000, Sibu, Sarawak
iii. Telephone/Fax Number/E-mail : 082 29 1067
iv. Form of Business : Partnership
v. Main Activity(ies) : Dietary Health Supplement Manufacturing
vi. Date and Number of Registration : 26th June 2020 / 202001887665 (1216565-A)
vii. Date of Commencement : 1st January 2022
viii. Initial (own) Capital : RM 250,000
ix. Name of Bank : AFFINBANK
x. Bank Account Number : 889765543900
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4.0 BACKGROUND OF OWNER

4.1 General Manager

Name of the owner/partners/directors : Mohamad Shahanil Bin Mohd Iesa

Identity card number : 941029-13-0509

Permanent address : No 63, Batu 5 ½, Jalan Matang,

94050, Kuching, Sarawak

Correspondence address : Lot 33A, Jalan Tapah, 96000, Sibu,

Sarawak .

Telephone number : 018 9796 401

Date of Birth : 29 October 1994

Age : 26 Years Old

Marital status : Single

Academic qualification : Bachelor’s Degree of Law (L.L.B) in

University of Malaya Law School

Courses attended : Business and Corporate Law

Skills : Project Management and Planning, Leadership

Skills, Communication Skill, Computer Skills

Experiences : Legal Counsel in Choo & Associates Law Firm

Present occupation : General Manager

Previous business experiences : Partnership with Choo & Associates Law Firm
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4.2 Administrative Manager

Name of the owner/partners/directors : Nur Amira Binti Azman

Identity card number : 900115-13-0606

Permanent address : No 33, Tanjung Plan, Jalan Mawar, Kuching,

Sarawak

Correspondence address : Lot 33A, Jalan Tapah, 96000, Sibu, Sarawak

Telephone number : 0127871004

Date of Birth : 15th January 1990

Age : 30 Years Old

Marital status : Single

Academic qualification : Diploma in Public Administration at UiTM

Sarawak

Courses attended : Seminar on Skill Administration

Skills : Self-Motivation, Passionate, Teamwork

Experiences : Business Manager in Bukit Bintang Enterprises

Present occupation : Administration Manager

Previous business experiences : General Admin

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4.3 Marketing Manager

Name of the owner/partners/directors : Nur Amiza Binti Rahman

Identity card number : 890412-13-3012

Permanent address : Lot 12, Main Street 3094,Km 22, Jalan Matang

Correspondence address : Lot 33A, Jalan Tapah, 96000, Sibu, Sarawak

Telephone number : 0113-3012124

Date of Birth : 12th April 1989

Age : 31 Years Old

Marital status : Single

Academic qualification : Bachelor’s degree at Leeds Becket University

Courses attended : Marketing and Advertising Management

Skills : Communication, Sales, Presentation,

Management, And Leadership Skills

Experiences : Two Years' Experience as A Marketing

Manager in Advertisement Company.

Present occupation : Marketing Manager

Previous business experiences : Marketing Manager in Advertising and Sales

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4.4 Operation Manager

Name of the owner/partners/directors : Muhammad Arif bin Zulkipli

Identity card number : 870707-13-7777

Permanent address : Lot77, Jalan Kilau, 96000, Sibu, Sarawak

Correspondence address : Lot 33A, Jalan Tapah, 96000, Sibu, Sarawak

Telephone number : 0130707177

Date of Birth : 7th July 1987

Age : 33 Years Old

Marital status : Married

Academic qualification : Global Scholar at Deakin University

Courses attended : Bachelor of International Studies

Skills : Leadership, Teamwork, Problem Solving

Experiences : Speaker for International Seminar

Present occupation : Operational Manager

Previous business experiences : International Language Interpreter

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4.5 Financial Manager

Name of the owner/partners/directors : Siti Nurdzahratulail binti Adres

Identity card number : 870326130332

Permanent address : Lorong Permai Jaya 9C2, 96000 Sibu, Sarawak

Correspondence address : Lot 33A, Jalan Tapah, 96000, Sibu, Sarawak

Telephone number : 01131719220

Date of Birth : 26th March 1987

Age : 33 Years Old

Marital status : Single

Academic qualification : Master at University of Cambridge Judge

Business School

Courses attended : Finance Studies

Skills : Strong Leadership and Financial Management

Experiences : Financial Manager of Shell’s Company For 3

Years

Present occupation : Financial Manager

Previous business experiences : Financial Executive

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5.0 BACKGROUND OF PROPOSED PROJECT

5.1 Price of Premise/ Cost of Rental Per Month

Bio-Kana Manufacturing owned a single building factory located in Jalan
Tapah, Sibu which cost RM 3,500 as the monthly fees. Besides, our company
also renting one headquarter in Selangor operated as distribution centre in
Peninsular Malaysia division which cost RM 1,500 per month.

5.2 Distance from the Source of Raw Materials

BIO-KANA
MANUFACTURING
(SIBU)
BIO-KANA
MANUFACTURING
(SIBU)

RAW MATERIAL
SUPPLY (KAPIT)

In order to get a fresh and high-quality raw material (Dabai fruits), our
company decided to deal with one of the villagers in Song, Kapit which
resulted the distance of 167 km which take roughly 8 hours and 20 minutes
from Kapit to Sibu.

5.3 Availability of Manpower

Our company have several amounts of manpower to help run the company’s
business smoothly. Recently, we do have around 315 number of workers which
include the higher position officer, factory worker, and professional team which
focus on the Research & Development (R&D).
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5.4 Transportation Facilities

To cope with transportation matters, BIO-KANA Manufacturing has 4 cargo

lorries to pick up and send any heavy material such as raw materials. Moreover,
we also have 3 vans which usually used to send our product to the nearest
customer.

5.5 Distance from Customer

The distance of our business with the customers is quite far with each other
especially when it comes to the location of our factory (Sibu). However, our
headquarter in Selangor is reachable for the customer to get their product since
it is located in the middle of Selangor city.

5.6 Basic Amenities

Fortunately, our infrastructure is fully provided with a complete basic amenity

starting from the source of water from Sibu Water Board, electricity supply from
Sarawak Energy, telephone facilities from Telekom Malaysia, as well as
internet connectivity from Unifi.
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5.7 Physical Location of The Project

WE ARE
HERE!!

BIO-KANA Manufacturing is located at Lot 33A, Jalan Tapah, 96000, Sibu,

Sarawak. Our physical location is located far away from the residential area
since we do not want to produce any air, water, and sound pollution in their
area. In fact, this location is also surrounded with other industrial building
which can established a healthy competition among the manufacturers.
Moreover, there are also another basic facility that are near to our company
such as courier service namely POSLAJU and City-Link.

5.8 Building

The picture above shows how BIO-KANA Manufacturing building looks

like. Frankly speaking, this is our company’s main factory which is used to
produce our dietary health supplement with the size of 100,000 square feet. On
top of that, this building has two level which are manufacturing factory at
level 1 while the administration office at level 2.
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06
ADMINISTRATION
PLAN
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6.0 ADMINISTRATION PLAN

6.1 Organization Mission, Vision, and Objectives

6.1.1 Vision

Bio-Kana Manufacturing vision is “To become the leading local dietary

supplement manufacturer that inspires healthier societies by linking people to
real food”.

6.1.2 Mission

Bio-Kana Manufacturing mission is “To create health awareness towards

Malaysian people by manufacturing a transparent, cruelty-free and organic
product for its consumer along with the benefits that have been guaranteed”.

6.1.3 Objectives

Our company’s objectives can be divided into two types namely short-term
objectives and long-term objectives. The objectives are as follow:

Short-term

Firstly, our company will strive towards increasing the efficiency and the
productivity of the employee which indirectly improve the status of our
company as a whole.

Secondly, we will also come out with the new idea and method on how to make
our brand more recognize in the local and global market by implementing
various kind of marketing strategies.
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Long-term

Firstly, our company have a future plan to set up a new franchise outside of the
country once the brand is fully established in order to make sure the whole
nation acknowledge the uniqueness of Dabai fruits which originally derived
from Borneo, Malaysia.

Secondly, BIO-KANA Manufacturing is aiming to joint venture with other

companies which have the similar type of health supplement industry due to the
fact we want to expand and enhance our company’s potential and producing a
various kind of health supplement.

Thirdly, our company also want to involve and sponsor any health campaign
either locally or internationally in order to spread an awareness of taking care
general health by consuming a high-quality health supplement.
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6.2 Organizational Chart

MOHAMAD SHAHANIL IESA

General Manager

SITI NURDZAHRATULAIL NUR AMIZA RAHMAN

Financial Manager Marketing Manager

MUHAMMAD ARIF NUR AMIRA AZMAN

Operational Manager Administrative Manager

Figure 1: Organizational Chart

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6.3 Administration Manpower Planning

There is a total of 6 personnel under administration that consist of General Manager,

Administration Manager. Marketing Manager, Operational Manager, Finance
Manager and Administrative Clerk of BIO-KANA Manufacturing

Position Number of Personnel

General Manager 1

Administration Manager 1

Marketing Manager 1

Operation Manager 1

Financial Manager 1

Administrative Clerk 1

Total 6

Table 1: Position and number of administrative personnel

6.4 Schedule of Tasks and Responsibilities

Position Task and Responsibilities

 To plan, implement and control the overall management of the

business.

 To plan and monitor the strategic progress of the business.

General
 To hire and train the new employees.
Manager
 Aiming for good customer’s service
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 To create a goal for the new projects of the business

 Acquire and keep track on needed supplies for the office.

 Managing all the repairment of the facilities such as

Administration
machinery, equipment and all the systems
Manager
 Implements the policies and procedures for each of the
departments.

 Requiting, selecting, orienting, and training employees

 Creating new marketing goals based on past performance

 Comes up with new and fresh idea of new products

 Analyse the current market trend, their competitor products

Marketing
and other important information to develop marketing strategy
Manager
 Connecting with various media buyers and advertising
agencies to make sure the marketing strategies has more
support

 Managing the production of the product

Operation  Managing operation process and operation strategy of the

product
Manager
 Acquiring the materials and resources for the production

 Monitor the whole progress of business

Financial  Managing the whole months financial transaction

Manager  Comes up with the strategies to minimize financial risk

 Answering and managing telephone calls

Administrative  Scheduling appointments

clerk  Completing general office tasks

Table 2: Schedule of Administration Task & Responsibilities

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6.5 Schedule of Remunerations

There is a total of six (6) employees under Administration Remuneration. The total of
remunerations is RM15,261.75.

Monthly EPF SOCSO Total

Salary Employer Employer
Position No. (RM)
Contribution Contribution
(RM)
(13%) (1.75%)
General Manager 1 2500 325 43.75 2,868.75

Administration 1 2400 312 42 2,754

Manager

Marketing 1 2400 312 42 2,754

Manager

Operation Manager 1 2400 312 42 2,754

Financial Manager 1 2400 312 42 2,754

Administration 1 1,200 156 21 1,377

Clerk

TOTAL 6 13,300 1,729 232.75 15,261.75

Table 3: Schedule of Administration Remuneration

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6.6 Other Compensation and Benefits

Maternity Leave and Paternity Leave

Bio-Kana Manufacturing also giving the benefits for the female and male employees in
term of their maternity leave and paternity leave. Women employees that taking
maternity leave is being given a total of 60 days with full payments while the paternity
leave will be maximum 3 days. However, the employees must inform the admin
departments at least one month before the due date of their pregnancy.

Bonus

Every year, bonus will be given to the employees at the end of year. The amount of the
bonus that will be given to the employees will be measured based on their performance
while performing their task. Usually, there will be a measuring milestone for the
employees that they should reach during their work performance. If they can reach the
target, then they will also be receiving a big bonus reward for their hard work and
dedication to do their task and responsibility at work.

Annual Leave

As for annual leave, we are aware that each and every employee is entitled to get the paid
annual leave. Here, at BIO-KANA Manufacturing, we offer a paid annual leave
according to year they have work for our company. If they a new employee, then they
can get 8 days of paid leave for a year, for middle class of employees who already work
for 2-5 year, they entitled for 12 days annual leave and for senior employees, they can
get a 16 days of annual leave per years.

Working Days

All of the employees that are working in our company are compulsory to work from
Monday to Friday since they are entitled to have their weekend on both Saturday and
Sunday. Nevertheless, they are required to work on Saturday if there is massive
production that requires extra manpower.
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6.7 List of Office Furniture and Fittings

Item Quantity Price/per unit Total Cost
(RM) (RM)
Office table 20 400 8,000
Office Chair 20 220 4,400
File Cabinet 10 210 2,100
Total 14,500

Table 4: List of Office Furniture and Fittings

6.8 List of Office Equipment

Item Quantity Price/per unit Total Cost
(RM) (RM)
Computer 10 2,300 23,000
Printer 4 300 1,200
Fax machine 4 280 1,120
Total 25,320

Table 5: List of Office Equipment

6.9 List of Vehicles

Item Quantity Price/per unit Total Cost

(RM) (RM)
Lorry Cargo 4 29,500 118,000
Mini Van 3 8,800 26,400
Total 144,400

Table 6: List of Vehicles

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6.10 Utilities

Utility Bill Monthly Rental (RM) Total Cost (RM)

Electricity 1,500 1,500

Water 350 350

Telephone – Wi-Fi 650 650
Total 2,500

Table 7: List of Utilities Bills

6.11 List of Office Supplies

Item Quantity Price/per unit Total Cost
(RM) (RM)
Writing Tools (Stationaries) 80 10 800
A4 papers (per box) 20 40 600
Files and Folder 50 8 300
Paper Shredder 4 240 960
Total 2,660

Table 8: List of Office Supplies

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6.12 Organizational / Administration Budget

Type Fixed Asset Monthly Other Total

Cost (RM) Expenses Expenses
(RM)
(RM)
Capital Expenditures/Fixed
Asset:
 Furniture & Fitting
14,500
 Machine & Equipment
 Vehicles 25,320
144,400
184,220
Working Capital/ Monthly
Expenses:
 Managers Salary +
15,261.75
EPF+SOCSO
 Utilities bills (Water,
electricity, telephone and Wi-
Fi) 2,500

17,761.75
Other Expenses:
 Business Registration License 1,000
& Fee
 Deposit utilities
 Other expenses 5,000
-Office supplies

2,660
8,660
TOTAL 210,641.75

Table 9: Administration Budget

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07
MARKETING
PLAN
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7.0 MARKETING PLAN

Bio-Kana Dabai Health Supplement Manufacturing has stated its achievements by
using their mission as to create a health awareness towards Malaysia people by
manufacturing a transparent, cruelty-free, and organic product to its consumer along
with the benefits that has been guaranteed. The vision of Bio-Kana Manufacturing is

By setting our own company motto as Transparent, Cruelty-free, and Organic as

guideline for our company becoming a well-known likewise successful health
manufacturing in the field of Beauty and Health world. By using our company
successful image, we be able to convince and influence people to purchase of our health
supplement product because people starting to believe and gained trust towards our
health supplement.

7.1 Product Description

7.1.1 The Proposed Product

i. We want to create something new especially in term of health supplement
by using the benefit of dabai fruit which can offer effective result as other
health supplement by other companies. The main reason establishment of
our health supplement product is to promote the effectiveness of dabai
fruit as dietary and health supplement towards Malaysian people.

ii. We also want to show the result of dabai fruits that had a different quality
as other fruits as dabai fruits is rich source of nutritionally important
mineral and contain high quality trace elements.

iii. We want to use the benefit of dabai fruit which also contain the highest
antioxidant on its dark purple skin, and this is suitable for the consumer
who in need of product that can fight free radical which can lead to cancer
risk. Besides, our health supplement product also can used by people who
have cardiovascular disease such as heart attack and hypercholesteremia
because it has already been proven by the scientific.
25 | P a g e

7.1.2 Brand

Bio-Kana Dabai Health Dietary Supplement

7.1.3 Selling Price.

The selling price of Bio-Kana Dabai Health Dietary Supplement is RM70 per
bottle which consist of 30 soft gel capsules.

7.1.4 Product Features

Using the soft gel capsules to protect the goodness of antioxidant of the
supplement.

7.1.5 Product Uniqueness

The uniqueness of Dabai which is Borneo local fruit can be promote due to the
effective in treating also can protecting human general health.

Our company is the first invention of manufacturing that come out which the
health supplement by using Dabai as the fruit-based supplement since there a
huge demand of people towards Vitamin C, fish oil and multivitamin.
26 | P a g e

7.2 Target Market

7.2.1 Pharmacy and Local Health Stores Owner

Bio-Kana Dabai Health manufacturing the main target market is the pharmacy
and the owner of local health store. As we all know, there are numerous of health
product needs for the pharmacy because it is wanting for the people in that area.

By providing the pharmacy and local health stores owner about our product, this
can give an opportunity for Bio-Kana’s to gain the local people trust about our
product are very good for health. Since, Bio Kana’s business can attract people,
this can help the business continues its manufacturing also the demand of people
can be fulfilling since the pharmacy and local health owner always restock their
product over and over.

7.2.2 Family Members

Bio-kana also targeting a family member especially from 20 years old until 50
years to consume this product since there is no age limit to start a heathy life.

People now days are often to take a health supplement regardless their age to
keep themselves fit and not falling sick so often. Bio-Kana Dabai Health
Supplement are very suitable especially for age of 40s since they need to take a
supplement that contain high in antioxidant.
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7.3 Market Size

Price per unit = RM70

Population data in Sibu division population = 299, 768

the area business

Estimate the 15% x 299,768

penetration rate
= 44,965

Estimates average RM 70(average per month)

minimum per
month

Per month
Estimate the market RM70 x 44,965
size per month / per = RM3,147,550
year
Per year
RM3,147,550 x 12 months
= RM37,770,600

Table 10: Market Size in Number

i. Market size per month = RM3,147,550

ii. Market size per year = RM3,147,550 x 12 months

= RM25,179,840
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7.4 Competitor
Like other companies, Bio-kana also has a competitor companies in Malaysia that
also sell products for health supplements. Although the source of health supplement
origin is different, Bio-kana that makes Dabai as a source of content also need to
compete by ensuring our product gives a good impression to the users.

7.4.1 The Analysis of the Competitor’s Strength

Competitor Strength Weakness

 Amway product has been  The Amway corp. only

recognizing over 80 countries using mode
and this show that Amway is communication such as
the strong global supplier. word communication.

 Offer 115 product in five  Not using tv platform or

categories and on of it is ambassador to advertise
nutrition. make the people did not
Competitor 1: aware about their product.
Amway corporation
 The decision of Amway
corp. to produce product
with higher cost led to the
reduction of their sales
revenue, a decrease from
RM 108.75 million in
2016 to RM 966.3 million
in 2019
29 | P a g e

 Product brand available in  The products for this

almost every state because company are insufficient
has a large of number of popularity in many
outlets. countries.
 Decision making by the
Competitor 2:  The brand of this company team is highly centralized
Herbalife Nutrition Ltd is outstanding due to high and this led to the
quality, brand image and company unable to come
utility. out with innovation.

 The efficiency of
operation making also
decrease due to them need
more time.

 Blackmores company as an  Easily can attack by

industry leader in Australia competitor because the
for more than 80 years, and positions and the unique
their product is the top selling proposition of
brand in Malaysia, beside it Blackmores product are
Competitor 3: also the top retail outside not clearly.
Blackmores Malaysia, such as Thailand,  The company has spent
Singapore, and Australia. the high amount of
 Blackmores Ltd product expenses for their
beefing up in both online Research & Development
and offline platforms in because the company
Malaysia, this helps the having a problem to defeat
business of Blackmores in another competitor if it for
Asia can growing about innovation.
20% per year.

Table 11: The analysis of the Competitor’s Strength

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7.4.3 The Analysis of Bio-Kana Manufacturing
Below are the opportunities and threats for Bio-Kana Manufacturing
OPPORTUNITIES
New and Unique Product Invention
Bio-Kana Manufacturing is the first
company that produce dietary health
supplement using Dabai fruit (Canarium
odontophyllum) as its main ingredient. This
invention could attract future customer to
consume the supplement since it is different
from those other supplements in the market.
Packaging
In order to be different in the market, Bio-
Kana Dabai Health Supplement is offering
its new generation of high-end bottling and
labelling which giving a full satisfaction to
the customer since they will get more than
what the pay.
Government Partnership
Due to the used of Dabai fruits as our
supplement main ingredient, Bio-Kana
Manufacturing will be assisted by Sarawak
Tourism Board (STB) to promote and
support this local business. Besides, our
company also collaborating with Malaysian
Agricultural Research & Development
Institute (MARDI) to ensure the quality of
our product is safe to be consumed.
Table 12: The Analysis of Bio-Kana Manufacturing
THREATS
Brand
Since Bio-Kana Manufacturing is the new
brand in the local level of producing health
supplement, most of the people might not
recognized and interested with the brand
which make them tend to choose another
well-established supplement brand.
Competitive Market
Nowadays, many people is concerned with
their general health. Hence, the producing of
health supplement in the market is rapidly
increasing. This kind of situation make our
company tend to struggle in order to ensure
the sustainability in the business field.
The Supply of Raw Materials
As we know, Dabai is a seasonal fruit which
only available at certain time. Moreover, not
many suppliers could accommodate us with
the raw material. Once the demand of the
supplement is exceeding our supply, it will
cause inefficient of production which
indirectly affecting the whole process of
manufacturing.
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7.5 Market Share

Bio Kana Manufacturing has identified three top competitor companies in Malaysia
which product the health supplements too. The competitor namely Amway
Corporation, Usana Health Science Inc, and Herbalife Nutrition Ltd. The survey that
has been done by the marketing manager of Bio-Kana Manufacturing towards the
competitor reveals that each competitor had control several percentages of the health
supplement market in Malaysia. The table below shown the percentage by the
competitor in 2019 before Bio-Kana product entry the market.

7.5.1 Market Share Before Entry

Name of company Market share Market size in Market Size

(%) number (RM)/month

Amway 40 17,986 1,259,020

Corporation
Herbalife Nutrition 35 15,738.35 1,101,642.50
Ltd
Blackmores Ltd 25 11,241.25 786,887.50

TOTAL 100 44,965 3,147,550

Table 13: Market Share Before Entry

Market Share

Blackmores Ltd
25% Amway
Corporation
40%

Herblife
Nutrition Ltd
35%

Amway Corporation Herblife Nutrition Ltd Blackmores Ltd

Figure 2: Pie chart of Market Share Before Bio-Kana Supplement Entry

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7.5.2 Market Share After Entry

Name of company Market Market size in Market Size

share number (RM)/month
(%)
Amway Corporation 40 17,986 1,259,020

Herbalife Nutrition Ltd 30 13,489.50 944,265

Blackmores Ltd 20 8,993 629,510

Bio-Kana Dabai 10 4,496.50 314,755

Health
TOTAL 100 44,965 3,147,550

Table 14: Market Share After Entry

Bio-Kana Dabai Market share

Health Amway
26% Corporation
35%

Blackmores Ltd
17% Herbalife
Nutrition Ltd
22%
Amway Corporation Herbalife Nutrition Ltd
Blackmores Ltd Bio-Kana Dabai Health

Figure 3: Pie chart of Market Share After Bio-Kana Supplement Entry

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7.6 Sales Forecasting

Sales

Month
RM REMARKS

1 303,480 Initial opening

2 314,790

3 321,090 -

4 315,280 -

5 485,000 Promotion

6 245,000 -

7 315,000 -

8 321,370 -

9 518,500 Promotion

10 245,000 -

11 356,160 -

12 363,790 Year-end sale

Year 1 Total Sales 3,777,060

Year 2 Total Sales 3,965,913 (5% increase)

Year 3 Total Sales 4,243,527 (7 % increase)

Table 15: Schedule of Sales Forecasting

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7.7 Marketing Strategy

The main objectives of marketing strategy under Bio-Kana Manufacturing are to enable
our business to plan and manage for the limited resources of material to attain the stated
marketing objectives.

Besides, the marketing strategy also become our main key idea to deliver the
satisfaction of our customer while providing them a competitive advantage.

Below is the marketing strategy of Bio-Kana Manufacturing.

7.7.1 Product Strategies.

When it comes to the product strategies, our company will come out with a
physical item which can be seen, owned, used, as well as consumes. In a simple
word, our product is tangible.

i. Quality

Bio-Kana Dabai Health Supplement is totally having its own prestige quality.
The ingredient that we use in manufacturing this supplement is high-quality
Dabai directly imported from Kapit, Sarawak which significantly known as the
main Dabai producer.

ii. Design

The design of Bio-Kana Dabai Health Supplement is more likely different with
other supplement in the market since we are trying to produce as minimalist
design as we can in order to adapt the current trend. Most of the time, the other
supplement in the market having an “old school” design which is outdated. By
using minimal colour and the choosing of the right font, Dabai Health
Supplement might be the first supplement product that can catch people’s
attention at one glance.
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iii. Packaging

As for our product packaging, we will offer a high-quality rates of glass bottle
which is believed to be the best packaging in producing supplement. The glass
bottle will be in the black color with a little bit of transparency which is useful
for the customer to see the amount left of their supplement. Furthermore, the
size packaging is medium which could store 30 capsules of supplement.

7.1.2 Pricing Strategy

Pricing strategy is referred to the method that has been used by our company to
state a price for our product. In fact, it is also describing the ability of our
customer to pay for the product that will be offered.

In Bio-Kana Manufacturing, we have decided to choose the price strategy of

based on cost since it is the most common pricing method in business. Under
the based-on cost pricing method, our company will calculate the fixed cost plus
the variable cost as well as the desired margin.

The more cost incurred, the higher price will be stated and vice versa. Therefore,
Bio-Kana Dabai Health Supplement will cost RM 70 per bottle which is in line
with our cost of production.

While setting up the price, we also look for our competitor product’s price which
is lower than ours. Unfortunately, the price that they are offered is not
equivalence with the quality of the product. Thus, with the benefits and quality
of our supplement, we believed that the people would keep buying it although
at the price of RM 70.
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7.1.3 Promotion Strategies

The promotion strategies of Bio-Kana Manufacturing is focusing on the two

main ways which are electronic and digital, as well as outdoor method.

i. Electronic and Digital

As for electronic and Digital method, our company will use the internet platform
since it is considered as a global platform. The main internet platform that will
be used to promote our product is our own website namely biokana.com.my.
Apart from that, we also promoting our product by using social media platform
such as Facebook and Instagram since it is the most effective way to reach the
customer.

In addition, by television promotional advertising. Since we are the new

manufacturing company that produce dietary health supplement, it is a must for
us to secure the trust from the customer by introducing the product in a proper
and trustworthy way. On the other hand, our company also aiming to promote
our product in the television program that focus on promoting the product. For
instance, GoShop and CJWOW Shop.

ii. Billboard

Based on our observation, not many of supplement manufacturer would spend

their money by using the billboard. Undeniably, this method will cost so many
expenses. However, since we are new in the industry, this method could be the
best way to attract our future customer. The billboard of advertisement will be
advertised along the way in a strategic place which allow everyone to see it.
Therefore, our product can be recognized easily by the customer.
37 | P a g e

iii. Sales Promotion

Unarguably, everyone is loved to get the promotion of product during sales.

Thus, our company taking this opportunity to come out with the special
promotion by offering coupon to our customer. The use of coupon is very easy
whereby the customer is required to buy at least 3 bottles of our Dabai health
supplement in a single purchase. Hence, they will be awarded with the 50% off
for the next purchase of the supplement. Therefore, this method could attract the
willingness of them to buy more.

7.1.4 Place or Distribution Strategies

Generally, place strategy is referred to the decision made on the location of the
business. In fact, the choice of location is vital in order to either reduce the cost
of production or to easy access towards the customer.

As for Bio-Kana Manufacturing, we do have two types of distribution strategy

namely Manufacturer to Consumer and Manufacturer to Retailer to Consumer.

i. Manufacturer to Consumer

When it comes to manufacturer to consumer strategy, it will make the process

of product distribution easy to be carried out. Besides, this method allows the
consumer to directly getting their product from our company. This kind of
situation helps to reduce their cost since they are paying for the normal price.

ii. Manufacturer to Retailer to Consumer

Secondly the use of manufacturer to retailer to consumer method. It sounds

complicated but yet it is just a normal business game. Once the product has been
produced at our level, it will be distributed to any local retailer that focus on
selling the health product such as local pharmacy and health store.

Although the price will be significantly increased due to the retailer action of
marking up the price, it also indirectly helps to redistribute our product to the
customer in their area. Therefore, our company does not have to focus on the
large market since the local retailer is already becoming our agent.
38 | P a g e

7.8 Marketing Budget

Type Fixed Asset Monthly Expenses Other Total
Cost (RM) (RM) Expenses
(RM)
Capital
Expenditure/Fixed Asset:
 Signboard 5,000
5, 000
Working Capital/
Monthly Expenses:
 Marketing Salary 4, 263.50
+ EPF + SOCSO

 Promotional 1, 000
expenses
5, 263.50
Other Expenses
 Opening
ceremony & sales
promo 10, 000 10,000
TOTAL MARKETING BUDGET 20,263.50

Table 16: The Marketing Budget

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08
OPERATIONAL
PLAN
40 | P a g e

8.0 OPERATIONAL PLAN

The operation plan is one of the most important factors to consider in a business. Like
other companies, our target is to ensure that our products/services are the best in quality
and able to satisfy our customers’ need and wants. Hence, a systematic operational plan
is formed so that our business able to run smoothly and achieves its objectives.

The objectives of our operational plan are as follows:

i. To ensure the business operation system runs smoothly order to maintain the quality of
the products and services to customers.

ii. To optimize customer satisfaction and fulfil their expectations towards our ability to
provide high quality products and timely services.

iii. To achieve consistency and stability in our production and services.

iv. To ensure the quality of our products/services meet the established standards.
41 | P a g e

8.1 Process Planning

Get the raw materials supply directly from Sibu and Sarikei. Imported from Song Village in
Kapit which claim to have a high-quality standard of Dabai Fruit due to its soil and stored in
80°C using Food Drying Machine.

Dabai was prepared by separating the pulp, peel, and kernel. Peel and pulp were pounded
and defatted in powder form using the Full-automatic large brick compression.

To make the capsules, the mixture of Gelatin (Halal), Stearic Acid (Vegetable) and Silicon
Dioxide will be used and put in Premium quality capsule pill coating machine for tablets
coating. This will produce Soft Gelatins capsules and Comparatively easy to swallow since
the shell is soft and flaccid.

After the everything completely in the form of capsules, its will be counted and filled in the
glass bottle and ready to be labelled using the Round bottle labelling machine using the custom
label sticker that been ordered.

Lasty, the finished product will be checked, counted, stored by the store manager and will
be ready for the shipments.
42 | P a g e

8.2 Operations Layout

Most of the time, the operations layout is referring to the arrangement of machinery,
equipment, workers, and other facilities that is being used in the operations. Therefore,
in Bio-Kana Manufacturing, we are using the layout based on the process.

Based on the layout below, it shows two different level operations layouts whereby our
company has decided to design the manufacturing factory located at level 1.
Meanwhile, our administration office will be at level 2.

Figure 4: Manufacturing Factory (level 1)

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Figure 5: Administration Office (level 2)

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8.3 Production Planning

Production planning is necessary to ensure that the organization can manufacture the
product or offer the service that is adequate to satisfy the estimated revenue that can be
gain by the business. This can prevent the surplus or shortage for the company.

Moreover, this production planning is the administrative process that takes place within
a production company and includes ensuring that enough raw materials, personnel, and
other required things are procured and ready to manufacture finished goods according
to the specified timetable. Thus, the company can decide how much output to generate
for a specific amount of time in production planning, such as a day, a week, or a month.

The calculation for output per month

Average sales / month: RM314,755

Price / unit: RM 70.00

No. of Output / month: RM314,755/ RM 70.00

= 4,497 units / month

Working days: 24 days

No. of Output in unit / day: 4,497 units / 24 days

= 187 units / day
45 | P a g e

8.4 Material Planning (Monthly)

Material planning is the phase for deciding the sufficient and good quality of raw
materials required for manufacturing such as the cost, quantity, safety stock, and others.
Thus, this material planning can improve the effectiveness of production operations.

ITEM/ QUANTITY Safety stock Total Material PRICE TOTAL

MATERIAL Requirement PER KG PRICE
(RM)
DABAI 1818 kg 181.8 kg 1,999.8 kg 60 119,988

GELATIN 145 kg 14.5 kg 159.5 kg 120 19,140

(HALAL)
STEARIC ACID 75 kg 7.5 kg 82.5 kg 82 6,765
(VEGETABLE)
SILICON 55 kg 5.5 kg 60.5 kg 250 15,125
DIOXIDE
TOTAL COST 161,018

Table 17: Material Planning (Monthly)

8.4.1 Bills of Material (1 bottle)

Product No. Description Specification Quantity Cost

001 Glass Bottle H: 8.5cm 1 RM3/Bottle
W: 4.5cm
002 Custom label 3 x 3 Inch 1 RM50/ 50 pieces
Sticker
003 Supplements Cap: 8.8mm 30 capsules Prepared by
Body:15.15mm ourselves

Table 18: Bills of Material for 1 bottle

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8.5 Machine and Equipment Planning

Machines are the completed item. In other words, machines are by-products of the
machinery used to manufacture them. The equipment has a much different meaning
and is often needed for any kind of machine to be complete.

No. Machine and Equipment Quantity PRICE PER UNIT TOTAL

(RM) PRICE
1 Food Drying Machine 3 RM647.00 1,941

2 Motorized roller conveyor 5 RM500.00 2,500

3 Round bottle labelling 3 RM9,800.00 29,400

machine
4 Full-automatic large brick 3 RM1,420.00 4,260
compression machine
5 Premium quality capsule 3 RM 3,800.00 11,400
pill coating machine for
tablets coating
TOTAL 49,501

Table 19: Machine and Equipment Planning

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8.6 Manpower Planning

There are a total of 19 personnel under operations as state below.

Position Number of
Personnel
Store Manager 4

Food Expert (scientist) 2

Pharmacist 1

Nutritionist 1

Machine Operator 8

Technician 3

TOTAL 19

Table 20: Position and number of operational personnel

8.7 Schedule of Task and Responsibilities

Position Task and Responsibilities

The store manager will be tracking a store’s day-to-day operations, such as

monitoring inventory levels and buying new goods, and ensuring that it runs
Store efficiently and successfully. They are responsible for empowering sales staff,
Manager designing business strategies, producing materials for ads, and attracting new
workers. This will be focusing on raw material storage and finished product storage.

Food Evaluating the nutritional value, color, taste, and texture of the food. Checking food
Expert samples for various types of molds, yeasts, and bacteria that could be harmful. Ensure
(scientist) that food production processes comply with government, manufacturing, customer,
and industry standards. Thus, our business can produce a high quality of the product.
48 | P a g e

Helping customers by compounding or dispensing medications, supplying

pharmaceutical knowledge to healthcare providers, tracking medications for
Pharmacist customers to prevent encounters with other medications, and providing customers
with pharmaceutical expertise on safe medication use. Thus, the product will be safe
for health.

Giving the best product information that can make on diet and ideal food options
Nutritionist depending on the presence of condition body or age. Consults with a team of
healthcare professionals collaborating with the client. Make sure can prevent
nutrition issues.

Responsible for the operation of complicated machinery. Function in dedicated

Machine capacity specializing in a particular machine or machine class. To complete
Operator operations as needed, sufficient materials and supplies are available for validation
such as Food Drying Machine, Round bottle labeling machine, Full-automatic large
brick compression machine, and Premium quality capsule pill coating machine.

Technicians are professional technicians who conduct highly advanced mechanical

Technician or analytical tests or work with complex structures. Managing all installation,
repair, maintenance, and test activities on the facility. Diagnosis of mistakes or
technological difficulties and proper solution determination for the machine.

Table 21: Schedule of Task and Responsibilities of Operational Personnel

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8.8 Schedule of Remuneration

There are total of 19 employees under Operational Remuneration. Total of
remuneration is RM34,434.75.

Position No. of Monthly EPF SOCSO Total

staff Salary
Employer Employer (RM)
required
(RM) Contribution Contribution
(13%) (1.75%)
Store Manager 4 1,300 195 26.25 6,085

Food Expert 2 2400 312 42 5,508

(scientist)
Pharmacist 1 2400 312 42 2,754

Nutritionist 1 2400 312 42 2,754

Machine 8 1500 195 26.25 12,170

Operator
Technician 3 1500 195 26.25 5,163.75

TOTAL 19 11,500 1,521 204.75 34,434.75

Table 22: Schedule of Remuneration

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8.9 Overheads Requirement

Overhead refers to the current business costs that are not explicitly attributed to the
development of a product or service. It is essential for budgeting purposes, but also to
decide how much a business must charge to make a profit for its goods or services. In
short, overhead is any cost incurred to support the organization despite not being
directly connected with a particular product or service.

NO. ITEM Cost (RM)/month

1 Repair and Maintenance 2,000

2 Rental 2,500

3 Insurance & Road tax 3,500

4 Indirect Material 27,209

5 Setup of machine 2,000

Table 23: Overhead Cost

8.10 Location
Bio-Kana Manufacturing is located at Lot 33A, Jalan Tapah Sibu in Sarawak. This
location will make us easy to get the Dabai fruit directly which is fresh and cheaper
which imported from Song Village in Kapit because of its soil, which appears to have
a high- quality Dabai Fruit level. Our business will get the raw materials to directly
from Sibu and Sarikei. In addition, the production of Dabai fruit is only possible in
the Borneo area because of its climatic factors. Usually, people in Peninsular
Malaysia prefer to pay more only to sample the unique taste of the fruit, as it is very
unusual to search for Dabai fruit in their location. Indeed, there are a lot of benefits or
good nutrition that consist in Dabai. However, making Dabai fruit as a health
supplement, it implicitly encourages the mainland, which is primarily in Sarawak that
the majority have the Dabai. Therefore, it tends to raise the interest of a prospective
new customer.
51 | P a g e

8.11 Operations Hour

Day Time

Monday to Friday 9 a.m. to 5p.m

Saturday - Sunday Close

Our business hours will be open 24 hours which is on the online platform. The online
platform that will be used is based on an online store platform such as Lazada and
Shopee. This is because the majority of demand online store platform giving the best
and fastest service for us and the customer such as searching, detail of product, quality,
feedback, and others.

8.12 License, Permits, and Regulations Required

i. Malaysia Certificate of Halal

According to Trade Description Order (Halal Definition) 2011, When a food or
item is described as halal or described with any expression others to show the
food or the goods can be eaten or used by Muslims, expression it means the
food, or the goods is not and does not consist of or contain any part or thing
of an animal that Muslims are prohibited by Islamic Law for Muslims to eat
or that is not slaughtered according to Islamic Law and Fatwa.

As for Bio-Kana Manufacturing, our company is producing dietary health

supplement using Dabai fruit as its main ingredients. Thus, in the Malaysia
certificate of Halal, our company will be under the regulation of pharmaceutical
which referred to any pharmaceutical products in the form of finished doses
including prescription and non-prescription drug products for human use
(biopharmaceuticals, radiopharmaceuticals, traditional medicines, nutritional
supplements, and research drugs) registered with the Drug Control Authority
under the Ministry of Health Malaysia.
52 | P a g e

ii. Certificate of SSM

Certificate of SMM is referred to the grant of certification under Suruhanjaya
Syarikat Malaysia which covers two types of namely general business and
companies in Malaysia.

Since Bio-Kana Manufacturing is practising Partnership as its business form,

our company will be liable under Business Registration Act 1956 which stated
that this business is owned by two or more persons. The main reason of
applying for SMM Certification is to make sure our company is certified of its
existence according to the law, to ensure that our company has the business
evidence, giving our company the right as the owner of the business,
providing the information for public accesses, and lastly to secure the rights of
our product consumer.

iii. Good Manufacturing Product (GMP) Certificate

Recognition of Good Manufacturing Practice (GMP) was created to give
official recognition to industries that achieve GMP elements while meeting food
safety requirements and consumer needs. GMP Certification Scheme has been
launched to give official recognition to food premises that successfully adopt
and maintain the system GMP in food premises.

Bio-Kana Dabai Health Supplement is required to apply for this certification

since we are in the manufacturing industry that involved with food-based
product. Moreover, with the GMP certification, our company will be able to put
the trust on our customer to consume our product since any of the premises that
has been granted the GMP certificate is compulsory to execute and practice
every element of GMP as stated in Malaysian Standard MS1514 Good
Manufacturing Practice (GMP).
53 | P a g e

iv. Malaysia Industrial Certificate

Another licence that is required to be applied in our company is the Malaysia
Industrial Certificate. This certificate is granted to any industrial and
manufacturing business which put general requirements that is mandatory to be
followed which include security, cleanliness, and garbage disposal. Therefore,
Bio-Kana Manufacturing will be labelled as Category B under the Malaysia
Industrial Certificate which referred to industrial / factory premises.

v. SIRIM QAS International Certificate

SIRIM QAS International Certificate is referred to any product certification is
where a third party (Certification Body) gives a written assurance that a product,
process, or services conforms to specified requirements.

Since Bio-Kana Manufacturing is producing the health supplement, the used of

high-quality machine is a must. Therefore, we have four types of machines
namely Drying Machine, Packaging Machine, Compression Machine, and
Coating Machine. These four machines are required to be tested by the
Certification Body to make sure the safety of the machine while producing the
product.

vi. National Pharmaceutical Regulatory Agency (NPRA) Registration

All pharmaceutical products including health supplements and traditional
medicines must be registered with the Drug Control Authority (PBKD) before
being marketed in Malaysia. In addition, effectiveness evaluation is also
conducted to ensure that pharmaceutical products in the local market are
effective.

As for our company, the evaluation of our products (Dabai Health Supplement)
needs to be conducted to ensure the quality, and safety of pharmaceutical
products and traditional medicines are guaranteed for use by the Malaysian
community which is our future costumer. Thus, Bio-Kana Manufacturing has
its registration number which is MAL20197146-N. The letter “N” at the end of
the number is referred to the category of health supplement in accordance with
the regulation under the Malaysia Ministry of Health.
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vii. Certificate of Analysis (CoA)

Basically, CoA is a piece of paper that gives actual test results for the batch
of product that manufacturer is producing. The test results are usually reported
against the typical specification.

Moreover, a specification for a product is a piece of paper that gives guidelines

of the physical and maybe chemical parameters of a product. While producing
Bio-Kana Dabai Health Supplement, the Certificate of Analysis (CoA) is very
important in order to make sure the composition, ingredient, and formulation of
our product is safe to be used.

viii. Trademark Registration Certificate

Trademark registration certificate means any sign capable of being represented
graphically which is capable of distinguish goods or services of one undertaking
from those of other undertaking. In a simple word, a trademark helps to identify
source and those linked for the products and services trade in the market.

As for Bio-Kana Manufacturing, we do have ® trademark in our company logo

which gives us the exclusive rights to take legal action for infringement under
the Trademark Law against others who use our mark without consents. In fact,
it also gives the consumer to choose goods and services with ease which
indirectly assist them to define a certain trademark for the product quality that
they will buy.
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8.13 Operational Budget

Type Fixed Asset Monthly Other Total
Cost (RM) Expenses Expenses
(RM)
(RM)
Capital
Expenditures/Fixed
Asset:
1,600
 Furniture
49,501
 Machine &
Equipment 15,000
 Renovation 66,101
Working Capital/
Monthly Expenses:
 Salary +
34,434.75
EPF+SOCSO
2,500
 Rental
161,018
 Raw material
27,209
 Indirect material
225,161.75
Other Expenses:
 Deposit rental (2 5,000
months)
 Maintenance and
2,000
Repair
 Other expenses
3,500
-Insurance &
Road tax 10,500
TOTAL OPERATION BUDGET 301,762.75

Table 24: Operational Budget of Bio-Kana Manufacturing

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8.14 Implementation Schedule

Below are the list of activities of Bio-Kana Manufacturing.

Activities Deadlines Durations

Incorporation of business July – September 2021 3 months

Application for permits and license July – October 2021 4 months

Searching for business premise July – September 2021 3 months

Renovation of premise October 2021 1 month

Procurement of machines and raw October – December 2021 3 months

material

Installation of machines December 2021 1 month

Recruitment of labours December 2021 1 month

Table 25: Implementation Schedule

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JAN FEB MAC APRIL MAY JUN JULY AUG SEP OCT NOV DEC
Incorporation
of business
Application
for permits
and license
Searching for
business
premise
Renovation
of premise
Procurement
of machines
and raw
material
Installation
of machines
Recruitment
of labours

Figure 6: Gantt Chart

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09
FINANCIAL
PLAN
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9.0 FINANCIAL PLAN

Other than having administration, marketing and operational plan, an entrepreneur must
have proper financial plan which is a crucial part in order to achieve a stable business.
A financial plan is the process that use to estimate the capital require by the business
and to determine its competition in the market. Besides, financial planning will be used
to predict the business’ future financial result and how the entrepreneur will manage
their financial resources wisely to pursue their short and long-term objectives.

Financial plan is consisting of the financial data from all of the operating budgets or
plan, which are the administrations, operational and marketing budgets. The
information gained from these plans will be converted into a financial budget and
prepared through the pro forma statement such as cash flow, income statement and
balance sheet. This will involve a few steps to be followed by the entrepreneur to create
a proper, workable, and meaningful financial budget for his business. After done
prepared the pro forma statement, a company can see everything whether there is any
problem of their financial.
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9.1 Project Implementation Cost and Source of Finance

Figure 7: Project Implementation Cost & Source of Finance

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9.2 Pro Forma Cash Flow Statement

Figure 8: Pro Forma Cash Flow Statement

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Based on the figure 8 above, Pro forma cash flow statement is prepared by a company to present
the estimation amount of cash inflows and outflows that they expect in the future for a specific
period. It could be developed as an annual budgeting or cash flow information since it is needed
by company management to make decision making for the future.

Besides, pro forma cash flow statement could be useful to detect any shortage of money.
Therefore, the company could increase their inflow by obtaining additional debt or equity
funding, and also can be use to plan the investment strategy.

It is also could make it easier to see the amount of the business’ ending cash balance for three
consecutive just like in the figure 8 above. According to the pro forma cash flow statement of
Bio-Kana Manufacturing above, it stated that the ending cash balance for Year 1 is
RM1,319,171. Meanwhile for Year 2, it has increase to RM2,207,191 since there are surplus
from the expenditure for that year. The amount of ending cash balance also increased in Year
3, which is RM3,222,771.
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9.3 Pro Forma Income Statement

Figure 9: Pro Forma Income Statement

As shown in figure 9 above, Pro forma income statement which is also known as pro forma
profit and loss, using the pro forma calculation method, which is primarily to attract the
potential investors, to focus on a certain figure when the company issues an income
announcement.

The company can easily see whether their net profit is increasing or decreasing by years.
Based on the pro forma income statement above, the accumulated net profit of Bio-Kana
manufacturing increase from Year 1 to Year 3 which is the amount are RM701,109,
RM1,533,890 and RM2,515,511, respectively
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9.4 Pro Forma Balance Sheet

Figure 10: Pro Forma Balance Sheet

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Figure 10 above shows the pro forma balance sheet of Bio-Kana Manufacturing. Pro forma
balance sheet is the tabulations that shows the future projections that could help the company
to manage their assets. This action could help they get a great result in the future. It can show
whether the business is lack of money and how much they have to get additional money as
their assets to run their business.

The total of Bio-Kana’s assets for 3 years according to the table is increasing by year. For
instance, in Year 1, the total assets are RM2,039,469. Meanwhile for Year 2, its amount is
RM2,833,624 and for Year 3, its amount is RM3,830,528. It is also the same to the total equity
and liabilities for Bio-Kana Manufacturing. It is increasing from Year 1 to Year 3 which is the
amount are RM1,712,069, RM2,506,224 and RM3,503,128, respectively.
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9.5 Financial Analysis

Figure 11: Financial Analysis

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Current ratio is one of liquidity ratio, which is used to measure whether the company have the
abilities to pay their short-term obligations that is due within a year. It also shows how a
company should maximize or use their current assets wisely to pay their current debt or other
payables. Current ratio could be calculated by compare the business’ current assets to its current
liabilities.

Based on figure 11, it shows that the current ratio of Bio-Kana Manufacturing increasing for
three consecutive years, from Year 1 to Year 3. For Year 1, its current asset amount is
RM1,825,212 and its current liabilities is RM225,425 which as a result, the ratio for Year 1 is
8.1. Meanwhile for Year 2, its current assets and current liabilities increased with amount
RM2,670,431 and RM260,205, respectively. As a result, its ratio is 10.3 which is also increased
from Year 1. Then, for Year 3, it also shows the increase in current assets, current liabilities,
and ratio with amount RM3,718,400, RM348,894 and 10.7, respectively. The current ratio of
the business will show the increase in graph line. Therefore, the business has the ability to
satisfy their current liabilities using their current assets wisely.

Next is quick ratio. Quick ratio or acid test is used to measure whether the company capable to
pay their short-term obligations or current liabilities without have to sell their inventories or
get another additional funding to increase their assets. It could be calculated by minuses the
current assets with inventory and divide with current liabilities.

Based on the figure 11, same with the current ratio, quick ratio also increasing for 3 years from
Year 1 to Year 3 since its current assets and current liabilities are increased by years. The ratio
amount of those years is for year 1, its ratio is 8.1, Year 2 ratio is 10.3 and for year 3, its ratio
is 10.7. As a result, it will show the increase in the graph line.
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10.0 CONCLUSION

In a nutshell, Bio-Kana Manufacturing is always concern about the needs of general

health especially towards the Malaysian since the awareness of taking dietary
supplement in this country is still below the expectation as compared to the people that
lived in foreign country. In fact, despite being the first local supplier of health
supplement in local level, we believed that this brand could bring the new atmosphere
of dietary product in the market which could eliminate the sceptical “over claimed”
product in the current market.

Moreover, Bio-Kana Manufacturing has made a lot of efforts during the survey for the
establishment of this company by seeking the advice, needs, and wants of public. In
connection with that, we are aiming to produce the best local product with the best
quality of raw materials that we could. On top of that, we are very certain and confident
that our business venture will create and produce a very satisfactory investment in
every return.

In the end of the day, our business will continuously make concrete in the business
strategies especially towards the marketing plan in which our biggest intention is to
penetrate the global market in the future. From the bottom of our heart, we hope that
we will be able to sustain in the market and also established a good relationship with
our loyal customer.
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APPENDICIES

Appendix 1: Business Logo

Appendix 2: Product Photo

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Appendix 3: Business Licenses and Regulations

A3-1: SSM Certificate

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A3-2: HALAL Certificate

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A3-3: Trademark Certificate

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A3-4: SIRIM QAS Certificate

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Appendix 4: Business Model Canvas

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Appendix 5: Turnitin Report