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GROUP ASSIGNMENT: BUSINESS PLAN

NEDIMA MX
PRINCIPLES OF ENTREPRENEURSHIP (ENT530)
FACULTY BUSINESS AND MANAGEMENT (HONS.) FINANCE
BA242
LECTURER: DR. MAZLINA MAMAT

NAME: STUDENT NUMBER:


NURUL ASMA' ILLYANA BINTI ISMAIL 2021492038

NURUL JANNAH BINTI RUSLI ZAHARI 2021478314

MUHAMMAD AIDIL SYAZWAN BIN 2021606702


KHAIRUL BASRI
SYUKRINA BINTI CHE MAT 2021857944

FAREED AIZAT BIN MOHD SADRI 2021107157


TABLE OF CONTENTS
NO. CONTENT PAGE
i Table of content 1
ii Acknowledgement 3
1 Executive Summary 4
2 Company Profile 5
3 Environmental Industry Analysis 9
4 Description of venture 14
5 Marketing analysis and competition 20
5.1 Target Market 20
5.2 Determining product or services 21
5.3 Market size 22
5.4 Competitors 25
5.5 Marketing strategies 26
6 Operation and production plan 30
6.1 Facilities and improvement’s locations 31
6.2 Layout plan of operation Nedima MX 32
6.3 Timing 33
6.4 Manpower planning 33
6.5 Schedule of task and responsibilities 33
6.6 Machinery and other capital equipment 34
6.7 Future capital needs 35
6.8 Process flow chart for manufacturing symbol of process 36
chart
6.9 Quality control 38
6.10 Production control 39
6.11 Material planning 40
6.12 Identify supplier 40
6.13 Operating budget 41
7 Organizational Plan 42
7.1 Organizational structure 43
7.2 Schedule of remuneration 44
8 Financial Plan 46
8.1 Start-up costs 46
8.2 Working capital 47

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8.3 Sales and purchases 48
8.4 Project implementation cost 49
8.5 Sources of project financing 50
8.6 Loan amortization 51
8.7 Proforma cash flow statement 52
8.8 Pro-form income statement 54
8.9 Pro-form balance sheet 55
8.10 Financial performance 56
8.11 Charts 57
9 Project Milestone 60
10 Conclusion 61
11 Appendices 62

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ACKNOWLEDGEMENT

First and foremost, we could like to praise and thank you the Almighty God for giving us the
strength and because of His blessing, we finally managed to accomplish the assignment. This
assignment cannot complete without effort and co-operation from our group member, which
are consist of five members. We always work hard to create a good assignment with our full
commitment and responsibility.

Therefore, we would like to acknowledge with thank to our lecturer Dr. Mazlina Mamat,
because without her guide our assignment cannot be done properly like this. She always gives
us support and guide on how to do our assignment in purpose to create a good outcome. She
inspired us greatly to work in this project. We also like to thank her for teaching us in this
course.

Last but not least, we would like to express our thankfulness to University Technology MARA
(UiTM) campus Kota Bharu, Kelantan for giving us opportunity to conduct this writing report
assignment. Finally, an honourable mention goes to our friends and classmates for the helps
and supports.

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1.0 EXECUTIVE SUMMARY

Regarding to fulfil Principle of Entrepreneurship (ENT530) course requirement, we need to


carry out a business plan. We are required to choose one business in order to accomplish this
business plan. By doing this business plan, we are able to bring in the operation management
of a company. After considering for many times, our group agreed to make a business of mobile
phone accessory, Nedima MX. Our company strive to achieve its vision and mission as well as
to surely serve the customers with the best quality of product. As we know, mobile phone is a
necessary device that used by every individual. Therefore, some accessories of these mobile
phone will be useful for every phone user.

This business is based on partnership where it consists of 5 members which hold important
positions in the company. First, we have Mr Fareed Aizat Mohd Sadri as the owner, Mr
Muhammad Aidil Syazwan Khairul Basri as our marketing manager, Ms Syukrina Che Mat as
our operation manager, Ms Nurul Asma’ Illyana Ismail as our financial manager and Ms Nurul
Jannah Rusli Zahari as our administration manager.

Nedima MX is a company that will operate in Kubang Kerian, Kota Bharu, Kelantan. The name
of this company is come out from the imagination by the partnership members. It shows that
how we positioning our products in customer’s mind until they can remember our company’s
name that is simple and easy to pronounce.

The company is focusing on electronic industry and we welcome all customer from every
income level. Our business will provide various mobile phone accessories such as phone cases,
earphones, powerbanks, cable phone and many more. Customer may choose any designs
available according to the brand of their smartphone they have. We offer the best and high
quality of products with affordable price for our lovely customer.

Business plan is necessary to all entrepreneurs. It is prepared to group of people which are
owner itself, bankers, suppliers, customers and employees. This plan also includes in Business
Plan chapter which is consist of administration plan, marketing plan, operation plan and
financial plan.

We are believed that our company will be able to achieve the business goal. We will get our
return capital within short time and our current ratio will cover our liabilities and put our
business in comfort stage with the highest.

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2.0 COMPANY PROFILE

NEDIMA MX is an electronic company that focusing on smart phone accessories business. Our
company’s name, NEDIMA is stands for needing innovation for mobile accessories and the MX
is accessories. Needing innovation for mobile accessories is our company’s slogan. The
headphones in the logo symbolize mobile phone accessories that related to sound such as
headphones, stand for mobile earphones, speakers and so on. Meanwhile, for the plug and the
lightning in the logo is stand for the mobile phone accessories that related to charging such as
cables, chargers, powerbanks, power adapters and many more. Our company is a wholesale and
retail store of mobile accessories such as phone cases, headphones, powerbanks, screen
protectors and others. Our company is one of the smart phone accessories companies that
responsible in supplying smart phone accessories in Kelantan, specifically in Kota Bharu district.
It is located in residential areas which is Kubang Kerian. The company is a soul proprietorship.
It was assisted by five employees with experience in office and financial matters and two staff in
retail department. The company’s owner is Encik Fareed Aizat Bin Mohd Sadri. He is a dedicated
and ambitious person. He is a young entrepreneur who successfully opened a mobile accessories
company. He opened this mobile accessories company because he thinks that mobile accessories
business is a lucrative business. This is because everyone uses mobile phones nowadays. Even
toddlers nowdays have their own smart phones. Our company sells the latest advanced
technology products. We always ensure that the products we sell are in accordance with the latest
trends and technologies. We always care about the satisfaction of our customers. This is because,
if any customer is not satisfied with the product from our store, they can exchange the product
for a new one or they can also return the product and get their money back. However, it must be

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exchanged or returned within a week of purchase. For customers who want to redeem their
money back, they must meet the terms and conditions that have been set by our compony's policy.

For the organizational chart, the chart was started with the owner of the company, Mr. Fareed
Aizat Mohd Sadri. He is the owner of NEDIMA MX company. He started the business in 1st
January 2020. Next, the marketing manager for NEDIMA MX is Mr. Muhammad Aidil Syazwan
Khairul Basri. He is the person who conducts market research, understands customer trends,
creates marketing strategies and budgets, oversees the creation of marketing materials and
content, and performs all other relevant tasks that important to increasing the business sales. For
Miss Syukrina Che Mat, she was incharged in locating problems in the company’s supply chain
through quality control checks, and monitor the employee schedules. She is the operation
manager. Miss Nurul Asma’ Illyana Ismail is the financial manager. She is the one that manage
the financial reports and information about the finance. Miss Nurul Jannah Rusli Zahari is the
administration manager. She is the one that develop and implement policies and procedures to
improve department operations and functions. For the retails and sales department, there is two
staff which is Mr Muhammad Adeeb Muhammad Ali and Miss Nur Aira Mohd Hafiz. Both of
them is incharged in answering the customer’s questions and assists the customers with the
purchase decisions.

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Name of the business NEDIMA MX
Nature of business Mobile accessories
Company profile NEDIMA MX is a wholesale and retail store of mobile
accessories. NEDIMA MX is one of the smart phone
accessories companies that responsible in supplying smart
phone accessories in Kelantan. The company is a soul
proprietorship. It was assisted by five employees with
experience in office and financial matters and two staff in
retail department.
Business location Kota Bharu, Kelantan.
Date of commencement 1st January 2020
Main purpose of the business The main purpose of NEDIMA MX business is to carry
out a task, that is to make an innovation in mobile
accessories by following the latest trends and
technologies. In our company, we offered all of the
products which can attract the attention of almost all levels

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of the target market. The levels of the target market which
is the toddlers, teens and adults. Our company providing a
variety of the latest technology for mobile accessories that
are suitable for various generations.
Future prospect of the business In the future, our company expects to open several outlets
in every state in Malaysia. So that, we able to reach all of
the target market in Malaysia.

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3.0 ENVIRONMENTAL INDUSTRY ANALYSIS

In 1988, the exact definition of environmental industry has been issued and stated by
Environmental Business International (EBI). Some experts do not know how to interpret this
term because of its nature that always changes from time to time. So, it is hard to unanimously
provide the fixed definition of this term especially in this era, where most things are altering
out of our expectations. A big honor should be given to EBI since they have made it easier for
many people to understand about this term particularly for those who are newly in the world
of business. So, the term of environmental industry is defined as all generations of revenues
which have pure connections with environmental protection, environmental resources,
environmental rules and regulations, contaminated property remediation, waste management
and also pollution abatement.

In the past, environmental industry is known as a clear industry since it just focuses on a few
fields as mentioned earlier. However, as the time flies, an integration happened, and this has
caused a mix with other new industries such as financial and hospitality industries. Each type
of alteration happens when there are new challenges and opportunities emerge. In United
States, it is recorded that this industry has collected an amount of $315 billion as its overall
revenues in 2010, which is a substantial amount of revenue comprehensively. All this collection
of money does come from the yields of 30,000 private sector companies and more than 80,000
public sector companies there. All those companies encompass a number of 1,657,300
employees and estimation of global environment market for that year is $803 billion.

In the first paragraph, we mention about the favor made by EBI for the newbies in future, but
we are quite sure that people do not exactly know what EBI is. EBI is one of the most prominent
research companies that plays a role in bringing up the strategic market intelligence on most
opportunities in certain industries. Those industries are Environmental Industry, Health and
Wellness Market, Climate Change Industry, and The Green Economy. People who profit a lot
from EBI are investors, policymakers, executives, and managements since all significant
information are in the journals provided by EBI itself. Moving back to our main topic which is
environmental industry, the other thing that we should be informed about this industry is in
term of its segments.

Basically, environmental industry is divided into 14 segments of business activities and all of
them are then classified into three primary categories or classes which are equipment,

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resources, and services. Under equipment category, there are totally five main segments which
consist of Water Equipment and Chemicals, Process and Prevention Technology, Waste
Management Equipment, Instruments and Information Systems, and Air Pollution Control
Equipment. Afterwards, under category of resources, we have three main divisions overall. The
first division is Clean Energy Power and Systems, the second one is Water Utilities, and the
last one is Resource Recovery. Next, under category of services, we have a total of six segments
generally. Those segments are Wastewater Treatment Works, Environmental Testing and
Analytical Services, Environmental Consulting and Engineering, Remediation or Industrial
Services, Solid Waste Management, and Hazardous Waste Management.

Segments Instances of Clients


(Environmental Equipment)
Water Equipment and Chemicals Municipalities and All Industries
Process and Prevention Technology All Industries
Waste Management Equipment Municipalities, Solid Waste Companies, and
Generating Industries
Instruments and Information Systems Government Regulated Companies,
Analytical Services
Air Pollution Control Equipment Auto Industry, Utilities, Waste-to-Energy
Industries
(Environmental Resources)
Clean Energy Power and Systems All Industries and Consumers, Utilities
Water Utilities Municipalities, All Industries and
Consumers
Resource Recovery Generating Industries, Municipalities, Solid
Waste Companies
(Environmental Services)
Wastewater Treatment Works All industries and Commercial
Establishments, Municipalities
Environmental Testing and Analytical Government, Hazardous Waste and
Services Remediation Contractors, C&E, Regulated
Industries

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Environmental Consulting and Engineering Government, POTWs, Municipalities, Waste
Management Companies, Industry
Remediation or Industrial Services Industry, Property Owners, Government
Agencies
Solid Waste Management All Industries and Municipalities
Hazardous Waste Management Government Agencies and Chemical or
Petroleum Manufacturers

In analyzing the environmental industry, the positive outcomes that we would gain is the
detection of potential effects either the effects are formed in hazards or opportunities. By
having this indication, we would be able to anticipate the changes afterwards. Being able to
make a prediction of future events, aid in achieving the business goals, detect the threats, and
help business in management course are the other advantages of developing the environmental
industry analysis by theory.

There is a set of alternative tools that we can use to make this kind of analysis. This set of tools
are referring to the factors of political, economic, social, technological, environmental, and
legal. As for political sector, there are some politicians that highlighting the raise of minimum
wages in our nation. When this happens, the cost to retain one employee will become high and
this will affect the prices of the products or services. In term of economic sector, we all know
that the state of economy is not fixed and it keeps changing throughout the time and this will
indirectly influence the long-term revenue of the business by basis. As for the social one,
everyone is clearly seemed to be following the trends like using social media and so forth. This
has caused a lot of businesses to undertake a new promotional method which is through online
advertisements.

In term of technology, it is a general knowledge for all people in this era to know that
technology assets are having lots of improvements day by day. This has caused a disruption on
certain business’ operation and then lead to a new emergence of fantastic business by based on
the usage of that technology. Other than that, in term of environmental field, the business which
always relies on weather and climate change is going to be the most sensitive one in general.
As a result of these worries, this kind of business would usually anticipate the weather and
climate change through information gained from televisions and then the operations of the
business would be rescheduled in the near days. Last but not least, as in term of legal sector,

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issues that basically have relations with health, employment, and safety policies would also
normally provide some influences on companies’ capacities in their operations and this kind of
instance has been happening until now.

Next, we move to an analysis of our company, which is NEDIMA. Generally, our business
project flow is analyzed through the sales, which always become a great measure for knowing
the current position of our business in the local market. For our company, there is a constant
increment in term of sales ad this is absolutely a good sign of the business growth. NEDIMA’s
base of business is located in Kota Bharu, which is one of the most famous city capitals in
Malaysia. In this region, there are so many people who are bestowed with wealth and like to
do shopping as hobbies of their lives. Not only that, people there are so obsessed with trends
and like to buy accessories like those related with smartphones or other sophisticated gadgets.
So, our decision to undertake a business here is undeniably a right choice since the business’s
spot is very strategic and our products are also demanded by people of various ages and races.

As under the cultural trend, our products are specifically perfect as for this society either for
Muslim or non-Muslim. This is because our products are certainly used by all people around
the world. The culture there actually has a great influence on many people of other states, and
this has luckily caused our business to meet growth periodically. For example, this region’s
community is very good in retaining their cultural heritage and this includes all of traditional
cultures like shadow play and dikir barat. The uniqueness of this state’s culture has led to an
increase in the number of tourists (domestic tourists or international tourists) that want to visit
this state. The domestic tourists do also come from this state too but just from a different region,
and they are so fond to take nice photos and video recordings for vlogging. Following from
this situation, there are so many of them that demand for high quality vlogging accessories like
gimbals, portable chargers, and so forth. Then, this makes our business to have more customers
afterwards and more people are now well-informed of our new business products.

Besides, as for economic trend, the state that we are currently undertaking the business is very
good in providing care for its financial sector. There are lots of economic activities that become
priorities for this state such as ecotourism, urban tourism, agriculture and so forth. This makes
this state to be one of the best locales to be doing the business since the market is wide. In the
scope of government trend, we all know that government is now providing digital access for
all and this has led to a well-organized online business at large. Digital access will facilitate
the process of digital service accomplishments throughout the whole state and country.

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Last but not least, when we talk about a business organization, there must be a set of key success
factors that become mainstays of its operations. Those encompass our strategic focus, people,
operations, marketing, and finances. To stipulate a strategic focus of our business, our company
is emphasizing on execution of plans and a good scope of management. Then, as for people,
our company would provide a great care for our staff and personnel so that there would be an
open cooperation between us. Subsequently, in terms of operations, there must always be an
intensive monitor on our business progress and processes so that supply and demand would not
be interrupted in the near future. Afterwards, in terms of marketing, our company is always
trying to build a good connection with the customers so that the sales would not be facing any
drop even once. In this case, we would try our best to provide immediate responses to our
customers’ inquiries if there are any. By doing this, customers would feel like they are being
treated with full care and become fond to deal with us once again. As for the last one, in order
for us to manage our finances, our company is always meticulous in terms of laying our assets
in a right place and taking care of our available facilities in a full effort so that the incurring
cost will always be assured to be in a low amount only.

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4.0 DESCRIPTION OF VENTURE

Venture is a term which encompasses various meanings based on different fields and sectors.
A word of venture is commonly described as one activity or project that is newly undertaken
and accompanied by a set of risks. If the project undertaker is lucky, then the project might be
followed with several big chances as well. Usually, this word is only heard in the world of
business but in a more detailed type of description. In business, when it is mentioned that the
someone is going to establish or create a business venture, it indirectly means that the person
will bring into being a new business in which the business is come up with a specific plan of
acquiring a fixed financial gain in general. New business is obviously referred to a small
business which typically operates with a moderate amount of funds and all its operations are
basically done through a meticulous manner since the business does not want to incur losses as
possible as it can.

The idea or plan to develop a business venture basically comes into a businessman’s mind
when there are some requests made from consumers about the products. When the requests are
confirmed properly, the businessperson can start making all the required preparations as to
produce the demanded products and market them in the most suitable places around the world.
In term of the ones who will finance the overall costs, the business owner himself would be the
one who is in charge with it. Outside investors are not interested to small businesses at the early
stages of the business’s running since in their thoughts, small businesses do not provide assured
positive returns from the investments made. They do not want to bear any unrequired risks
especially when there are many other big businesses that they can invest on. Nevertheless,
when the business has already been operating for a long time and indicates a well performance
from its overall operations, the investors would then come by themselves to make an offer in
funding our business at that time.

Besides, the other thing that we need to know about business venture is it can be formed without
a formal structure of business. The people involved in the venture just need to have a great
tolerance and expertise with respect to the risk management in general. Other than that, they
also need to have other significant skills if they want to generate a constant good performance
for their business. Those skills are like communication or oral skills, critical thinking skills,
collaboration or teamwork, and leadership skills. All these skills are among the predominant
expertise that a company would usually demand when it wants to hire staff. Knowing how to
communicate in more than one language can help much when the business acquires foreign

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customers. Fluency in communication can provide a good comprehension for customers and
that decides either the customers want to buy our products or not. Critical thinking skills can
be beneficial when the business is facing problem or a sudden dop in sales. A worker equipped
with this skill will be able to think the best solution in overcoming the faced nodus in an
immediate way and this makes the business become invincible for the long run. Afterwards, a
teamwork developed among the workers will absolutely become necessary at all times so that
the business could ensure the constant production of its products. In this case, compatibility
should exist among them and this is what that makes the production process becomes faster
and efficient.

Last but not least, the leadership skills, the skill which needs to be honed in all employees so
that any works can be done with a full of guidance. Many people believe that this skill should
only be inculcated in managers or higher-ups since they are the ones who administer and
monitor the flow of business operations. In reality, the belief is totally wrong. This is because
the managers will not always be there to help us when we need their guidance. So here, there
must be at least one subordinate who could replace the position so that other workers can
depend on him whenever they do not know about something regarding the business. Normally,
the person who is eligible to replace the boss does come from the ones who possess the longest
experience in the business field. Long experience means that the person is accustomed with all
intricacies of the business and he knows what exactly to do if something suddenly comes up.

To identify the business venture, there are some characteristics or traits that refer to it. The first
characteristic is it is an enterprise which is conducted based on a business plan. The second one
is it should be one or more partners in that enterprise. The third one is the goods or products
produced should be met with the purpose as to fulfill the demand of consumers or solving the
consumers’ problems in general. The fourth characteristic is the business could be in any
segments or industries. The last one is there is an organization or company constituted by the
entrepreneur in the purpose to run the business. By indicating all these traits, it is proven that
the person is currently forming a new business venture at large.

Besides, when we talk about the business venture, there must come to our minds about how
good the person must be so that he or she can be chosen to be part of the venture. The answer
is laid on the research on most businesses around the world. The research has proved that most
businesses are appointing workers based on the characteristics that I am going mention later.
If someone possesses all these characteristics, he or she will have a big chance to be absorbed

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into any new business ventures out there. Those characteristics are like someone who has a
mindset of entrepreneurship, someone who is very charismatic in doing business, a good
negotiator, someone who has a big dream, creative person, and also a work hard person. The
reason of why businesses are looking for someone who is very charismatic to be one of its
workers is because this kind of person has the ability to easily sell his insights or ideas to
organizations.

Ventures in business is classified into various types by common views. The type of a particular
venture will rely on the law which it needs to comply and the venture is also required to be
developed through a proper business structure. By having a proper business structure, the
determination of legal rights can be made and this will facilitate the business to bring to a total
of its tax amount overall. So, to simply clarify, the types of it are like sole proprietorship,
limited partnership, limited liability partnership, general partnership, limited liability company
(LLC), and corporation. If we compare all those types of ventures, a venture of sole
proprietorship is the easiest one to be undertaken since its operations do not involve other
important people in its management. The owner or also called as the founder will be fully
responsible and liable of his losses if the business is bound to it.

Any business ventures especially the small ones that require a substantial amount of funds will
need to be having good connections and relationships with the investors which exclusively aim
to invest in small business like the angel investors in the purpose to grow their businesses.
Some entrepreneurs would organize crowdfunding campaigns to acquire the additional funds
and prior to that, they need to apply the small business grants at the first place. As for the
preliminary stage, all entrepreneurs will absolutely be starting with the small corporations or
businesses. The normal thing that they will be thinking of is about the cost of how much the
business would incur and this actually depends on what types of products that they will offer
and who the target market is.

No. Accessories of NEDIMA Benefits or Usage


1. Bluetooth Earbuds A wireless earbud which makes it very
convenient for free movements.
2. Headphones In-ear headphones that provide better sound
waves to the users and reduce the noise and any
other sound distractions.

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3. Portable Chargers Prominently known as power banks and
provide big helps to all smartphones when they
are out of battery.
4. Cases/Covers First thing to be bought after getting a new
smartphone.
Can be a good protector for your smartphone
whenever it is prone to drops particularly.
5. Headphone Adapter A complement tool for headphones since it is
not provided together with it in the time of
purchase.
6. Portable Bluetooth Speakers Provides improvement on a sound quality
especially in a wide area.
7. Screen Protectors Protecting your phone screens from scratches
or any damages.
8. Phone Ring Holders A very beneficial item if someone wants to
have a better grip of his smartphone in general.
9. Skins Modifies a dull look of the smartphones and
makes it more outstanding compared to others.
10. Charging Stations A perfect thing for a neat man or someone who
prioritizes a tidiness in his room since the
charging phone will look more organized when
it is put on its station.
11. USB OTG Flash Drives Helps lots of people in term of keeping or
saving additional variety of files when the
smartphones are no longer having available
space in its internal storage.
12. Car Chargers Some people will only rely on their power
banks when the phones are completely in need
of battery, However, it is better to use a car
charger as the substitute of it when you are in a
car.

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13. Gimbals Aids in recording a stable or steady videos
especially in making vlogs and other
significant videos.
14. Selfie Sticks Most people love to take selfies especially
when they are on holidays. Selfie stick would
be a very handy tool in facilitating the snap
process and having nice pictures.
15. Waterproof Pouch The latest models of most smartphones are
having good resistance of water. Nevertheless,
that kind of improvement is still not enough
especially when the phone is brought into the
water for a long period. So, in this case,
waterproof pouch directly becomes a necessity.

NEDIMA indeed has a potential to be a successful company in the future since its products are
having direct connections with the flow of technology day by day. By the provision of all these
complementary tools, there would be lots of common daily problems can be solved such as in
terms of communication time restriction, smartphone durability, and so on. Furthermore, our
business will also benefit a nation’s economic sector when we are doing good in selling the
products and all this can be seen through several economic behaviors that occurred. Back to
our main discussion, technology is having an improvement constantly and the only way on
how community can know the progress is by relying on our knowledge and services in which
provide them the latest technological items in the market. We could say that it is almost all
countries around the world have been exposed to the emergence of technology and internet and
this has caused the demands for all these technological accessories become higher as the time
flies.

Instead of having a great profit from selling all these things, our business is also not escaped
from facing lots of competitors in the same market Since the demands are high, it absolutely
comes to sense that there would be more new businesses to emerge in selling similar kind of
products. To be specific, Monaliza Store is one of the companies that becomes a strong
opponent for us in selling all these products (mentioned in table above) since this company is
also supplying the latest kinds of technological items in affordable prices. To compete with this
company, NEDIMA should pattern more alternative approaches in expanding its business

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influence around Malaysia especially. Other than that, through a benchmarking , our company
has decided to supply new accessories with faster deliveries so that we can defeat the business
of Monaliza. In the near future, our business will launch some new products which stand on
our own brand, which is NEDIMA. All those products are equipped with new technological
capacities and also going to be sold in a very affordable prices in general. As for the long-term
goals, our company is targeting to bring all of our products into several international markets
so that more people from various countries can know the existence of latest gadget accessories.

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5.0 MARKETING ANALYSIS AND COMPETITION

A marketing plan is a document that lays out a company's marketing strategy and strategies. It
generally focuses on a certain time period and includes marketing-related data such as
expenses, objectives, and action actions.

The name of our company is Nedima MX. Our company sells mobile phone accessories such
as phone cases, earphones, power banks, cables and many more. We believe that people
nowadays really needed for those types of accessories as mobile phone is necessary for a person
to have and to use in their daily life. We give an excellent product yet affordable for people to
use our products for style and last longer. Social media platform is one of our places to attract
customer to come to our store and also to announce any promotions or event at our store. In
this marketing plan, we will find out target market, market share, sales forecast, marketing
strategy and marketing budget.

5.1 Target Market

The target market of Nedima MX is to target and focus who would be our customers and who
we will target for marketing to attract them to purchase our product are:
i. Demographic
ii. Psychographic
iii. Geographic

i. Demographic

1. Age
Our target age is teenagers and adults. Starting age at 12 years old can afford and suit
our product needs.

2. Gender
Our products are universal products as our product are ready to use for men and women.

ii. Geographic

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1. State
We target all the regions in Malaysia. Our store is based in Kota Bharu, Kelantan. We
can provide postage services to people outside our place.

iii. Psychographic

1. Lifestyle
We understand that most people are using mobile phone nowadays. Our products are
the best choice for them as they can easily use and suite all types of mobile phone that
have many designs.

5.2 Determining product or services

Our product is to provide accessories for people with all ages that using mobile phone. Our
product is always the first choice because we provide it based on customers' needs and wants
with an affordable price. We also provide our customer with a lot of space and organized
display area for costumer to find their best suite choice of mobile phone accessories.
At our store we hire staff who have excellent communication skills so our customers will feel
comfort with our customer service.

Product: Mobile Phone Accessories

Selling Price: RM 5 – RM400

Product Features: Phone cases, Output audio system, power charge, cable connection.

Material: Soft and hard material, long-lasting, washable, light-weight and expendable.

Benefits: Long lasting, easy to use, suitable for all ages and safe.

List of Product: Power bank, phone case, earphone, headphone, charging cable.

21
5.3 Market size

Total Customer per year = 57,000 person

Estimate demand = 15,000

Target market = 15,000

Market share = 25%

Market size = Quantity per person x price per unit x target market

Based on this, we estimate that a customer will spend around RM150 per year. Market size =
1 x RM150.00 x 15,000
= RM2,250,000

Expected Purchase Per


Store Percentage (%)
Year (RM)
Gadget World 666 Kota
30% RM675,000
Bharu

Nedima MX 25% RM562,500

Panda Puteh Gadget


23% RM517,500

Doco Murah Al-Murah


22% RM495,000

TOTAL 100% RM2,250,000

22
Product/Service Market Share and Sales
Year
Market share 30 25 23 22
(%)
Total sales in 4,500 3,750 3,450 3,300
units
Total sales in 675,000 562,500 517,500 495,000
RM

Market Share the Nedima MX has entered


the market

22%
30% Gadget World
Nedima MX
Panda Puteh Gadget
23% Doco Murah Al-Murah
25%

23
Sales Forecast per months

Month Sales Collection (RM)


January 39,765
February 46,700
March 40,692
April 45,546
May 67,400
June 41,469
July 40,676
August 42,989
September 45,899
October 42,896
November 42,768
December 65,700
Total Sales Year 1 562,500
Total Sales Year 2 (Increase 5%) 590,625
Total Sales Year 3 (increase 9%) 643,781

According to the sales forecast, out company started the business in January with RM39,765
per month. Then the sales grow slowly until May which is the highest sale because in this
month, we make a great promotion for Hari Raya Aidilfitri event and most of our customer buy
our product to be stylish and need a lot of accessories during the day. Then our sales go up and
down until December where our sales in the second highest because we also make promotion
during Christmas and School Holiday promotion for customer to buy accessories during
holiday. Other than that, we also estimated our sales increase by 5% on second year and
increase 9% on third year.

24
5.4 Competitors

In business we will face many competitors. Competitors have their own strengths and
weaknesses, so do we. It does not take down our business. We must face it in diverse ways to
ensure our differences will make our business unique. As a result, we will develop effective
marketing tactics that capitalize on our rivals' flaws, and we will use competition analysis to
enhance our own firm.

Competitors Strength Weakness


Gadget World 666 Kota • A well-established firm • Lack of customer
Bharu • Has operated for a long service
period • Not friendly staff
Nedima MX • Has new brand of gadget • High postage cost
accessories.
• Really known store in
town.
Panda Puteh Gadget • More options, design and • Do not have physical
brands store
• High postage cost
Doco Murah Al-Murah • Located in high strategic • Do not have many
area options

25
5.5 Marketing Strategies

• Pricing Strategies

For pricing strategy, we used to compare between competitors' prices. Based on our
observation, competitors out there are selling their product with the same quality brands like
us with higher and expensive prices. We took these advantages to sell our product below market
than other sellers. We believe, in this era people are very controlling of their financial state to
cover their life and expenses. With high quality material coming with a low price, people will
not hesitate to buy at our store.

• Product
Nedima MX is a company that offer gadget accessories. Our company well-known that provide
new high technology accessories for gadget. Our accessory comes up with various categories
and various kinds of designs in terms of colour. We are selling a trendy accessories with a
premium quality product in Kota Bharu, Kelantan. Everyone can purchase our product at our
store and also available on our online store.

• Sales Tactics

The method that we use for our sales is by directly approach customers and also by increasing
the adds through social media platform. We choose these two methods as for us, it is the best
method that suits our type of business. This is because, as for mobile phone users, they usually
need to look directly at the product before they purchased it. Other than that, sometimes
customers need to be explained on the benefits of some products that actually they needed but
never heard of. So these two method is very great as we can have direct involvement with our
customers so they can make direct decisions when buy products at our store.

• Service and warranty policy

Our service strategy is different from others. Our company's marketing strategy is
service quality. We know how important service quality will impact our business. We have to

26
take care of our good will with this method. We will provide a good service to customers to
protect our company reputation. We always take as priority what customers need and want.
Our product quality guarantees the best materials we take. We always know which kind of
brand customers’ demand. We gave them what they wanted because customers are like a king
to us. We want to contribute our best efforts to them. When our product qualities are good with
an affordable price, this will attract other people to buy or repurchase our product.
In order to unplanned events such as product defects or malfunction. We give them a warranty
to exchange the product for one weeks with terms and conditions. Customers must keep the
receipt for future use. For defect products, we will apologize and give them a new one. We
admit our mistake for not being concerned or double checking when a purchase is happening.
Lastly, after sales services we will approach customers for customer’s feedback. This will
improve our service in the future. We want to contribute energy and time to customers. This
connection will improve our relationship. We want to ensure we will keep in touch with
customers to keep them up-to-date about new design and stock arrivals.

• Promotional Mix

Promotion is an effort that drives the product, marketing target goals will be achieved. There
are four (4) strategies to achieve our marketing target.

i. Advertisement

In the technology era, everything is easy to do physically or virtual marketing. We


advertise our product and store through social media platforms such as Instagram. We take
initiative to pay for Instagram marketing. Instagram marketing will advertise our product
through Insta-story. It will appear randomly to anyone who follows-up for Insta-story of their
following. In other ways, we invest some money for our firm's sake. We decided to use a paid
review technique. This technique was used widely all around the world until today by someone
who is famous on social media or an influencer. After we paid those influencers, our marketing
and customer interaction through our social media increased more than before.

ii. Sales Promotion

27
In a year, there are many celebrations, festivals or events. First of all, every end of year we will
do clearance sales. Our promotions should be buy 1 free 1 for selected items and 30% off if
purchase RM 100 above. Then, for a positive response we do sales promotion during payday
and Hari Raya. These sales have been supported by many people. Not to forget once a year we
will celebrate our store anniversary and announce shocking sales. It can be buy 1 free 1 for all
items, 50% off per item or free gift for purchase above RM 150. Every year will come with a
different promotion to surprise our customers.
Next, for online purchase, we offer free shipping with terms and conditions apply.

iii. Personal Selling

Using a personal selling method, we rarely use this way. We only took the chance to do
marketing promotions on the weekend. Mostly, we aim for a crowded place such as a shopping
mall, up town and any events. We will do face-to-face marketing, promote and describe what
product we have, features and benefits. Hence, besides face-to-face marketing, we also do tele-
marketing, WhatsApp blast to all customers in order to expand our business.

iv. Publicity

We mainly keep updated through social media like Instagram. Instagram is our main online
platform for customers outside of our HQ. We reach customers through this platform. During
sales or any essential information, we will update through Instagram. This method makes our
marketing strategies more effective.

• Distribution Channel

The headquarters of Nedima MX located in the central city of Kota Bharu, Kelantan.
We choose this location because of its high strategic location and high population, among
others. This area has many young generations such as school and university students and also
many workers of the private and public sector. It is okay to invest extra money to shop rental
for a high chance of returns. Place strategies are particularly important to us. When we are at
the right place, people will see our existence and appeal to all around us.

28
Retailer Channel
Our proposed is to use the channel of retailer. This is the quickest way for our company to earn
extra income, since the retail outlets is suitable and customers purchase in retail or in a bunch.

Manufacturer Retailer Consumer

Marketing Budget

Types Cost (RM)


Advertising for opening 750
Social Media for Opening 1,500

TOTAL 2,250

29
6. 0 OPERATION AND PRODUCTION PLAN

The operational department was in charge of making sure that every productivity procedure
went as planned and without any problems. One of the most important positions in a company
organization is operation since it is the area in charge of making a profit at a cost within the
budget and managing the firm effectively. It involves making the most effective and efficient
use of the available resources. This department has a clear goal, and its role is to support
everyone involved in obtaining it.

Operation is also a crucial component of how a firm should be operated. This sort of component
relates to marketing, administrative, as well as financial strategies and actions. An entrepreneur
cannot successfully manage their firm without a suitable operating strategy. This is so because
operational activities concern how the entrepreneur will operate their company. is the process
of organizing a company's input to produce output in the form of goods or services. Through
operations management, businesses are able to manage several aspects of their operations,
including people, equipment, information, technology, and others.

Without operational planning, the entrepreneur will not benefit and will not be aware of the
issues they are attempting to solve. The operational strategy therefore requires the right plan to
implement and understanding on how to handle linked business. An operation plan may be
characterized as a strategy for making sure the company operates as expected and can have
enough inventory on hand to meet client demands. These plans may also concentrate on the
manufacturing, including time management, quantity, and quality.

30
6.1 FACILITIES AND IMPROVEMENTS
LOCATION

Our real store will be located at Kubang Kerian, Kelantan. We chose this spot after considering
a number of factors, including distance, transit system, and surrounding environment.
Furthermore, we consider our position to be significant due to its accessibility and
infrastructure. A good infrastructure may help any type of business. Another element we
examine when deciding where to locate our firm is the availability of good road connections.
As a consequence, we will have customers almost every day because our location is easy to
spot where people pass by regularly. Our business is also nearby to a number of well-known
cafés and restaurants, which is one of our methods for attracting additional people.

31
6.2 LAYOUT PLAN OF OPERATION NEDIMA MX

OFFICE
TOILET

PRODUCTION

TESTING CASHIER
LOCATION

DISPLAY AREA DISPLAY AREA

DISPLAY AREA DISPLAY AREA

DOUBLE
DOOR

Based on our investigation, our shop layout is quite large and can accommodate a maximum
of 20 customers at one time. It contains racks area to display our items and testing location for
the customer try the product. The plan also includes a storage facility, where the company
keeps the safety stock from suppliers to avoid from out-of-stock situation. We selected this
shop lot since it is large and convenient for the staff as well as our customers to look around.
It is one of our market strategies to provide comfort to our customers and encourage them to
visit our shop.

For office space, we provide five key rooms for management of Nedima MX. The first room
is set aside for our general manager to keep an eye on the rest of the team. Our organization's
managers, including the administrative manager, finance manager, operations manager, and
marketing manager, have the remaining four rooms. We also have a break place for the staff
who require it, as well as a kitchen inside our office called the pantry. It also consists of
restroom, a prayer room, and a conversation room.

32
6.3 TIMING
Our operation hours for business:

Days Operation Hours


Saturday – Thursday 10.00 am – 10.00 pm
Friday Close

6.4 MANPOWER PLANNING


Manpower Requirements

Position Qualification Status Number


Operation Manager Bachelor Full time 1
Staff 1 Diploma Full time 1
Staff 2 SPM Part time 1
TOTAL 3

6.5 Schedule of Task and Responsibilities


Position Task and Responsibilities
Operation Manager • Ensure that the company's operations are
efficient and organized.
• Ensure the whole equipment available is safe
and clean
• Ensure customer satisfaction by maintaining
the quality of product.
Staff • Assist the company's operations manager on a
daily basis.
• Assist the operations manager in arranging
organizational manpower.
• Maintain and manage the facilities
• Responsible for the arrangement of goods

33
6.6 MACHINERY AND OTHER CAPITAL EQUIPMENT
List of Machines

Machine Quantity Price/Unit Total (RM) Total Cost


(RM) Monthly (RM)
Phone case 1 2250 2250 200
printing machine
Steam press 1 1090 1090 80
machine
TOTAL (RM) 280

List of Machine Supplier

Machine/Equipment Supplier
Phone case printing machine 4134-B, Jalan Telipot, Bandar Kota Bharu,
15150, Kota Bharu, Kelantan
Steam press machine PT 1428, Kampung Wakaf Che Yeh, Jalan
Kuala Krai, Bandar Kota Bharu,15150,
Kelantan.

34
6.7 FUTURE CAPITAL NEEDS

To compete with other firms in the same sector and be more successful in the future, Nedima
MX needs develop a future plan. Nedima MX predicts that demand for their product will
increase by 15% in three years. This is because people will begin to notice the presence of
Nedima MX in the market. In addition, individuals currently use smartphones in their daily
lives. As a result, customers must take special care of their smartphone by acquiring accessories
from our store. Because people nowadays are more eager to follow trends, the idea of Nedima
MX will persuade more people to acquire it. As a result, Nedima MX will require extra cash in
the future to fulfil product demand and remain competitive in the market. Nedima MX has
considered numerous aspects that may affect the cost of producing the product based on the
preceding estimate. The prices of raw materials such as silicone for phone cases, tag brand, and
diamond will climb by 10% in the future, raising the price of the product. Furthermore, as the
product's demand develops, Nedima MX will need to invest in new gear to increase output.
The machine's expenses are expected to rise in the future due to a variety of causes.
Furthermore, in order to satisfy demand while still supplying high-quality items to clients,
Nedima MX requires extra workers to make the product. People' wages, such as the operation
manager's, will climb since the operation manager is expected to supervise more workers
during the manufacturing process to ensure that everything works well. The number of workers
is expected to rise by 5%, and their pay would rise by RM 100 per person, depending on the
nature of the employment. Lastly, when the company produces more products to meet market
demand, the company's overhead expenses will also rise by up to 10%. The overhead costs
consist of machine maintenance and cleaning. Planning future capital needs and how to manage
and utilize these sources effectively will help Nedima MX to expand without financial
limitations in the future.

35
6.8 PROCESS FLOW CHART FOR MANUFACTURING
SYMBOL OF PROCESS CHART

NO SYMBOL TYPE OF ACTIVITY DESCRIPTION

1. Operations Activity that modify.


Transforms or give added value
to the input.

2. Transportation Movement of materials or goods


from one place to another.

3. Inspection Activity that measure the


standard or quality.

4. Delay Process is delayed because in


process materials are waiting for
next activity.

5. Storage Finished products or goods are


stored in the storage area or
warehouse.

36
FLOW CHART FOR THE PRODUCTION

Opening a store to operate

Check out all the facilities available

Start a business service

Customer goes to the displayed area

Customer choose the product they want

Customer try the product like cable phone at the testing location

Customers make payments at the counter

Customer receive the receipt

Check the stock in storage area

Check the shop before closing

Close the shop

37
6.9 QUALITY CONTROL

Quality control is the process through which a corporation seeks to maintain or improve
product quality while limiting or eliminating faults. Our organisation must develop an
environment in which both management and employees strive for perfection in order to
maintain quality control. This is performed by staff training, the establishment of product
quality norms, and the testing of products for statistically significant differences. Quality
control relies heavily on the development of well-defined controls. These controls help to
standardise both production and reactions to quality concerns.

Nedima MX concern on the quality of products, so, we routinely examine the quality of arriving
and exiting goods or materials on our production line. We aim to deliver high-quality products
and services that exceed our customer’s expectations. To maintain and increase the high quality
of our goods and services, we taught our process line staff to ensure that the finished products
are standardised to each other. This is done to ensure that our employees meet production
standards and that the product quality is ensured.

38
6.10 PRODUCTION CONTROL

In order to produce desired products in the right quantities and with the desired quality at the
right time, using the best and cheapest approach to achieve maximum production efficiency,
production control is a scientific procedure for managing the orderly flow of material and
coordinating numerous production operations.

A company's material supply and processing operations are planned, coordinated, and
regulated by management as part of the production control function to ensure that certain goods
are created according to certain methods in order to adhere to a predetermined selling schedule.
It ensures that operations are carried out in a manner that effectively utilises the money and
resources that are available.

We shall control actions in the first place. Products that are in demand on the market are
released to achieve this. Having this in place will help to guarantee that production does not
outpace consumer demand. The material movement is then controlled. The timing of material
receipt from the supplier, its usage, and its movement from one stage to the next in the
manufacturing process are all carefully watched to make sure that this movement is in line with
the production cost. Following that, equipment availability is managed. The manufacturing
plan's equipment will be made available as needed by taking the necessary precautions.

Next, take over replacement. The amount of materials and work-in-progress that fails each
inspection stage is measured. Every material for work has the option of receiving replacement
orders. The latter two are resource management and efficiency. Each item of work-in-process
is tracked and the time spent on it is noted. For instance, the amount of time spent is matched
with the time provided in the timetable.

39
6.11 MATERIAL PLANNING
Material Requirement Planning per Month

Accessories Quantity Safety stock Total Price/Unit Total (RM)


Material (RM)
Required
Charging cable 250 50 300 20 6,000
Earphone 250 50 300 15 4,500
Headphone 200 50 250 25 6,250
Powerbank 100 50 150 60 9,000
Silicone phone 450 50 500 5 2,500
case
TOTAL (RM) 28,250

6.12 Identify Supplier

Accessories Supplier
Charging cable 1ST floor, Digital Mall, NO 2, Jalan 14/20, section 14,
46100 Petaling Jaya, Selangor
Earphone Lot No. S2.72(D2), 2nd Floor, South City Plaza
Persiaran Serdang Perdana, Seksyen 1, Taman Serdang
Perdana, 43300 Seri Kembangan, Selangor
Headphone 31, Jln TTDI Grove 7/1, Bandar Kajang, 43000 Kajang,
Selangor
Powerbank 1ST Floor, Digital Mall, NO 2, Jalan 14/20, section 14,
46100 Petaling Jaya, Selangor
Phone case South City Plaza, No 10-12, Lower Ground Floor,
Sungai Besi Serdang Perdana, 43300 Seri Kembangan,
Selangor

40
Operations Overhead per Month

Overhead Monthly Cost (RM)


Machine maintenance 100
Cleaning 80
TOTAL (RM) 180

6.13 Operating Budget

Items Fixed Asset Monthly Other Total (RM)


(RM) Expenses Expenses
(RM) (RM)
Fixed Asset
Phone case printing 2250 200 2,450
machine
Steam press machine 1090 80 1,170
Working Capital
Materials 28,250 28,250
Overhead 180 180
Other Expenses
Deposit for overhead 300 300
Manufacturing license 300 300
Prototype 100 100
TOTAL (RM) 3,340 28,710 700 32,750

41
7.0 ORGANIZATION PLAN

The organization plan is also called as administration plan. The purpose of the organization
plan is to make sure that the firm is efficiently administered and managed so that its goals may
be met. Company management tasks including planning, organising, directing, and controlling
are managed by a business administrator. They will aid the business in directing each
department's entire workforce. A logistics and administrative support plan for the operation
that gives information and instructions for controlling and maintaining company routines.
Additionally, administration is in charge of partnerships, pay, and employee welfare, including
SOCSO, EPF, bonuses, and medical, emergency, maternity, and yearly leave benefits. The
quantity of workers is taken into account because they put their energy into this firm. The use
of money will also be calculated to ensure that it is properly handled to prevent waste. The
administrative plan will compute all of the necessary items, including furniture, equipment,
office supplies, and so forth. As a result, the company's financial flow was easily tracked and
recorded. By doing this, the company's earnings increased and the quality of the product/item
may occasionally be improved.

Mission:

• To innovate, to lead, to enhance, to provide best-value products and services to customers.

• To make difference through our branding to stay ahead of market changes and the latest
technology.

• To enhance the quality of life for our community.

Vision:

• Able to provide the best and latest product and technologies.

• To fulfil customer needs and wants.

Objectives:

• Developing and maintaining a unique and professional image.

• Maintaining strong relationship with customers is the key to any company’s survival

42
7.1 ORGANIZATIONAL STRUCTURE

43
7.2 SCHEDULE OF REMUNERATION

Depending on their position within the organisation, the employees' monthly salaries or
contractual earnings are included in the compensation plan. Additionally, it takes into account
any significant payments made by the business, including the Employees Provident Fund
(EPF). For all qualifying employees, it is the employer's duty to register them as EPF
contributors if they have not already done so. Employees are currently required to contribute
11% of their base wage each month as per the law. The monthly contribution that the employer
makes is 12% of the total. Employers must also provide for their workers by making Social
Security Organization contributions (SOCSO). It is a type of insurance to safeguard the
workers in terms of monetary compensation in the event of unanticipated occurrences at work.

POSITION QUANTITY MONTHLY EPF SOCSO TOTAL


SALARY (RM) (RM) (RM)
(RM) (12%) (1.50%) (A)+(B)+(C)
(A) (B) (C)
OWNER 1 3027.50 420 52.50 3500
FINANCIAL 1 1384.00 192 24.00 1600
MANAGER
OPERATIONAL 1 1317.50 180 22.50 1500
MANAGER
MARKETING 1 1211.00 168 21.00 1400
MANAGER
ADMINISTRATION 1 1340.75 186 23.25 1550
MANAGER

44
OFFICE FURNITURE
TYPE QUANTITY PRICE/UNIT TOTAL
(RM) (RM)
DISPLAY TABLE 3 200 600
DISPLAY RACK 4 110 440
DISPLAY HOOK 40 SET(5/SET) 4 160
RACK SHELF 6 896.70 5380.20
FRONT DESK 1 350 350
CHAIR 5 89 445
CASHIER 1 898 898
MACHINE
COMPUTER 4 289 1156
TABLE

OFFICE SUPPLIES
TYPE QUANTITY PRICE/UNIT TOTAL
(RM) (RM)
COMPUTER 4 349 1396
PRINTER 2 139 278
STATIONERY 5 80 400
WIFI 1 89/MONTH 89/MONTH

45
8.0 FINANCIAL PLAN
8.1 Start-Up Costs

Types of Fixed Assets Estimated Cost (RM) Estimated Economic Life


(years)
Administrative/Organisation
Land & Building 157,000
Office furniture 9,429 10
Vehicle 62,000 10
Sales/Marketing
Advertising for opening 750 3
Social media paid review 1,500 3
Operations/Technical
Machinery 3,340 7
Total 234,019

8.2 Working Capital

Pre-Operating & Incorporation Costs (one-off) RM


Development cost 6,700
Business incorporation 2,288
Deposit (rent, utilities, etc.) 3,000
Other pre-operating & incorporation costs 850
Sales & Marketing Costs (monthly)
Advertising 750
Social media paid review 1,500
General & Administrative Costs (monthly)
Rent 1,250
Utilities 365
Office supply 220
Office maintenance 750
Operations & Technical Costs (monthly)
Purchase of Raw Materials/Goods 5,500
Carriage Inwards 620
Salaries, Wages, EPF & SOCSO 11,950
Other Expenditure (annually)
Telephone and internet 3,000
Insurance 2,200
Total Pre-Operations & Working Capital Expenditure 40,943

46
8.3 Sales and Purchases

Sales Projections RM Purchase Projections RM


January 2017 37,500 January 2017 5,500
February 2017 29,763 February 2017 3,450
March 2017 27,255 March 2017 3,700
April 2017 28,945 April 2017 4,200
May 2017 28,780 May 2017 3,850
June 2017 27,255 June 2017 4,070
July 2017 25,750 July 2017 2,750
August 2017 27,450 August 2017 4,800
September 2017 28,650 September 2017 6,300
October 2017 25,763 October 2017 3,250
November 2017 22,100 November 2017 3,020
December 2017 35,340 December 2017 5,000
Total 2017 344,551 Total 2017 49,890
Total 2018 366,780 Total 2018 58,800
Total 2019 387,371 Total 2019 70,560
Total 2020 393,998 Total 2020 84,672
Total 2021 402,954 Total 2021 102,600

47
8.4 Project Implementation Cost

Capital Expenditure Cost Sources of Financing


Land & Building 157,000 Loan
Office furniture 9,429 Cash
Vehicle 62,000 Existing asset
Advertising for opening 750 Cash
Social media paid review 1,500 Cash
Machinery 3,340 Existing asset
Working Capital 1 months
Sales & Marketing Costs (monthly) 2,250 Cash
General & Administrative Costs (monthly) 2,585 Cash
Operations & Technical Costs (monthly) 18,070 Cash
Pre-Operating & Incorporation Costs (one-off) 12,838 Cash
Other Expenditure (annually) 5,200 Cash
Provision for Contingencies 5% 13,488
TOTAL 288,450

48
8.5 Sources of Project Financing

Own Contributions
Capital Expenditure Cost Existing F. Loan Hire-Purchase
Cash Assets
Land & Building 157,000 157,000
Office furniture 9,429 9,429
Vehicle 62,000 62,000
Advertising for opening 750 750
Social media paid review 1,500 1,500
Machinery 3,340 3,340
Working Capital
Sales & Marketing Costs
2,250
(monthly) 2,250
General & Administrative
2,585
Costs (monthly) 2,585
Operations & Technical
18,070
Costs (monthly) 18,070
Pre-Operating &
Incorporation Costs 12,838
(one-off) 12,838
Other Expenditure
5,200
(annually) 5,200
Provision for
13,488
Contingencies 13,488
TOTAL 288,450 52,622 65,340 170,488

49
8.6 Loan Amortization

LOAN AMORTIZATION SCHEDULE


Amount (RM) 170,488
Interest Rate 3%
Duration (yrs) 20
Method Annual Rest
Instalment Payments
Year Principal Balance
Principal Interest Annual Payments
- - - 170,488
1 6,345 5,115 11,459 164,143
2 6,535 4,924 11,459 157,608
3 6,731 4,728 11,459 150,877
4 6,933 4,526 11,459 143,944
5 7,141 4,318 11,459 136,803
6 7,355 4,104 11,459 129,447
7 7,576 3,883 11,459 121,871
8 7,803 3,656 11,459 114,068
9 8,037 3,422 11,459 106,030
10 8,279 3,181 11,459 97,752
11 8,527 2,933 11,459 89,225
12 8,783 2,677 11,459 80,442
13 9,046 2,413 11,459 71,396
14 9,318 2,142 11,459 62,078
15 9,597 1,862 11,459 52,481
16 9,885 1,574 11,459 42,596
17 10,182 1,278 11,459 32,414
18 10,487 972 11,459 21,927
19 10,802 658 11,459 11,126
20 11,126 334 11,459 (0)

50
8.7 Pro-Forma Cash Flow Statement

MONTHLY
2017
CASH FLOW
Pre- 2017 2018 2019 2020 2021
MONT Janu Febru Mar Apr Ma Jun Aug Septem Octo Novem Decem
Operati July
H ary ary ch il y e ust ber ber ber ber
ons

CASH
INFLOW
Capital 52,62
52,622 0 0
(Cash) 2
162,3
162,395 0 0
Loan 95
Cash 26,25 19,0 20,2 20,1 19,0 18,0 19,2 18,03 241,1 256,7 271,1 275,79 282,06
20,834 20,055 15,470 24,738
Sales 0 79 62 46 79 25 15 4 86 46 60 9 8
Collection 0 7,500 9,70 8,42 8,51 8,65 8,32 7,87 8,065 8,475 8,018 6,996 90,55 110,6 115,5 117,97 120,58
of 3 7 5 1 9 6 3 20 25 9 8
Accounts
Receivabl
e
TOTAL
CASH 26,25 28,7 28,6 28,6 27,7 26,3 27,0 26,50 546,7 367,3 386,6 393,77 402,65
215,017 28,334 28,120 23,488 31,734
RECEIP 0 81 89 61 29 54 91 9 56 66 85 7 5
T
CASH
OUTFL
OW
Pre-
operating
&
12,83
Incorporat
12,838 8
ion
Expenditu
re

51
Sales &
Marketing 2,25 2,25 2,25 2,25 2,25 2,25 27,00 27,54 28,09
2,250 2,250 2,250 2,250 2,250 2,250 28,653 29,226
Expenditu 0 0 0 0 0 0 0 0 1
re
General &
Administr
2,58 2,58 2,58 2,58 2,58 2,58 31,02 31,64 32,27
ative 2,585 2,585 2,585 2,585 2,585 2,585 32,919 33,577
5 5 5 5 5 5 0 0 3
Expenditu
re
Operation
s&
15,32 16,5 16,4 16,4 16,6 15,9 16,6 17,04 197,6
Technical 15,945 17,710 16,315 16,626 208,2 221,6 223,57 239,97
0 55 70 95 00 36 09 5 26
Expenditu 02 14 7 6
re
Other
Expenditu 5,200 5,200
5,304 5,410 5,518 5,684
re
Purchase
168,6
of Fixed 168,679
79
Assets
Hire-
Purchase
Repayme
nt:
Principal 0 0 0 0 0 0 0 0 0 0 0 0 0
- - - -
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0
- - - -
Loan
Repayme
nt:
Principal 504 504 504 504 504 504 504 504 504 504 504 504 6,044
6,225 6,412 6,604 6,802
Interest 406 406 406 406 406 406 406 406 406 406 406 406 4,872
4,691 4,504 4,311 4,113
Tax 1,10 1,17 1,09 15,83 16,09 15,02
0 1,129 915 794 805 793 632 242 1,540 15,673 14,157
Payable 2 4 1 9 5 4
TOTAL 26,26 22,3 22,2 22,2 22,3 21,6 22,3 22,79 452,9 272,6 298,3 301,58 319,37
181,517 21,690 23,455 22,060 22,671
CASH 5 00 15 40 45 81 54 0 75 86 04 2 8

52
OUTFL
OW
CASH
SURPLU
6,48 6,47 6,42 5,38 4,67 4,73 93,17 94,68 88,38
S 33,500 -15 6,644 4,665 3,719 1,428 9,063 92,195 83,277
1 4 1 4 3 7 4 0 1
(DEFICI
T)
BEGINN
ING
33,50 40,1 46,6 53,0 59,5 64,8 69,5 78,96 720,8 813,9 903,6 997,02 1,069,
CASH 33,486 74,301 82,686 84,114
0 30 12 86 07 91 64 7 44 61 41 2 217
BALAN
CE
ENDING
CASH 33,48 46,6 53,0 59,5 64,8 69,5 74,3 82,68 813,9 908,6 997,0 1,069, 1,152,
33,500 40,130 78,967 84,114 93,177
BALAN 6 12 86 07 91 64 01 6 61 41 22 217 494
CE

53
8.8 Pro-Form Income Statement

Years 2017 2018 2019 2020 2021


Sales 344,551 366,780 387,371 393,998 402,954
Less: Cost of Sales (Notes 1 & 2) 53,330 66,889 80,681 90,887 112,601
Gross Profit 291,221 299,891 306,690 303,111 290,353

Less: Expenditure
Pre-Operating & Incorporation Expenditure 9,838
General & Administrative Expenditure 31,020 31,640 32,273 32,919 33,577
Sales & Marketing Expenditure 27,000 27,540 28,091 28,653 29,226
Operations & Technical Expenditure 143,400 146,268 149,193 152,177 155,221
Other Expenditure 5,200 5,304 5,410 5,518 5,684
Interest on Hire-Purchase
Interest on Loan 4,872 4,691 4,504 4,311 4,113
Depreciation of Fixed Assets
Total Expenditure 221,330 215,443 219,471 223,578 227,821
Net Income Before Tax 69,891 84,448 87,219 79,533 62,532
Tax 0 0 0 0 0
Net Income After Tax 69,891 84,448 87,219 79,533 62,532
Accumulated Net Income 69,891 84,448 87,219 79,533 62,532

54
8.9 Pro-Form Balance Sheet

2017 2018 2019 2020 2021

ASSETS

Non-Current Assets (Book Value)


Land & Building 157,000 157,000 157,000 157,000 157,000
Vehicle 62,000 58,590 55,368 52,322 49,445
Machinery 3,340 3,340 3,340 3,340 3,340
Office Furniture 9,429 9,240 9,055 8,873 8,695
Other Assets
Deposit 3,000 3,000 3,000 3,000 3,000
234,769 231,117 227,763 224,535 221,480
Current Assets

Inventory 4,000 3,500 1,120 2,800 852


Accounts Receivable 12,812 12,226 12,912 13,133 13,432
Cash Balance 93,174 94,680 88,381 92,195 83,277

109,986 110,406 102,413 108,127 97,561


TOTAL ASSETS 344,755 341,523 330,176 332,662 319,041

Owners' Equity
Capital 117,962 117,962 117,962 117,962 117,962
Accumulated Income 69,891 84,448 87,219 79,533 62,532
187,853 202,410 205,181 197,501 180,494
Long-Term Liabilities
Loan Balance 156,352 150,127 143,715 137,111 130,309
Hire-Purchase Balance 0 0 0 0 0
156,352 150,127 143,715 137,111 130,309
Current Liabilities
Accounts Payable 3,104 7,559 13,439 34,607 60,505

TOTAL EQUITY &


344,755 341,523 330,176 332,662 319,041
LIABILITIES

55
8.10 Financial Performance

Financial Ratio Analysis 2017 2018 2019 2020 2021

LIQUIDITY
Current Ratio 1.2 1.5 1.08 1.7 1.4
Quick Ratio (Acid Test) 1.7 1.8 1.02 1.9 1.5

EFFICIENCY
Receivable Turnover 6.62 5.71 7.25 5.75 6.24
Inventory Turnover 7.14 6.27 8.35 6.76 5.84

PROFITABILITY
Gross Profit Margin 65.76% 67.27% 58.74% 64.26% 68.36%
Net Profit Margin 20.76% 22.87% 17.98% 23.82% 25.87%
Return on Assets 12% 14% 8% 15% 18%
Return on Equity 15.9% 17.6% 13.2% 18.4% 20.6%

SOLVENCY
Debt to Equity 0.7 0.8 0.6 0.9 1.0
Debt to Assets 1.5 1.7 1.2 1.4 1.8
Time Interest Earned 1.8 2.1 1.7 2.2 2.5

56
8.11 Charts

Current Ratio
2

1.5

0.5

0
2017 2018 2019 2020 2021

Current Ratio

Quick Ratio
2

1.5

0.5

0
2017 2018 2019 2020 2021

Quick Ratio

Receivable Turnover
8

0
2017 2018 2019 2020 2021

Receivable Turnover

57
Inventory Turnover
10
8
6
4
2
0
2017 2018 2019 2020 2021

Inventory Turnover

Gross Profit Margin


70.00%

65.00%

60.00%

55.00%

50.00%
2017 2018 2019 2020 2021

Gross Profit Margin

Net Profit Margin


80.00%

60.00%

40.00%

20.00%

0.00%
2017 2018 2019 2020 2021

Net Profit Margin

Return on Asset
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2017 2018 2019 2020 2021

Return on Asset

58
Return on Equity
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2017 2018 2019 2020 2021

Return on Equity

Debt to Equity
1.5

0.5

0
2017 2018 2019 2020 2021

Debt to Equity

Debt to Asset
8

0
2017 2018 2019 2020 2021

Debt to Asset

Time Interest Earned


3
2.5
2
1.5
1
0.5
0
2017 2018 2019 2020 2021

Time Interest Earned

59
9.0 PROJECT MILESTONES

ACTIVITIES DEADLINE
Business licensing 10 January 2016
Incorporating a business 15 February 2016
The starting of research and 4 May 2016
development
Preparation of the manufacturing facility 10 September 2016
and the office
Ordering of operational materials 3 November 2016
Start of the preparation January 2017

60
10.0 CONCLUSION

We are strongly confident that our company, Nedima MX is going to grow even bigger as well
as keep spreading our brand throughout Malaysia smoothly. There is no doubt, with the help
of the most hardworking and dedicated group of workers will make our company to reach its
goals in no time. No matter how successful this company would be, we will never forget our
main purpose of this company which is providing the latest version in gadget accessories as to
let our customers get their hand as soon as possible.

As for the future, we are looking forward in bringing our brand enter the big market in gadget
industry. From the small company to jump in big events and competing with other big brands
or companies that are doing the same service as ours. Last but not least, we are also hope people
will see the uniqueness of our company and become our regular customers as long as we are
running the business.

61
11.0 APPENDICES

62

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