BASIC ENTREPENEUSHIP (MGM 3180)

GROUP 5

No. Matric No. Name

1. 202817 NOR IZWAN HAKIMI BIN NOR AZMI

2. 202189 NUR ALIYA ADIBAH BINTI HASANUDDIN

3. 204164 NAZURAH BINTI MOHD NORMAN

4. 204162 NUR NAJIHAH BINTI ABDULLAH

5. 204667 NUR JANNETTE FARZANA BINTI

ZAKARIA

6. 203848 AIN ADIBA BINTI RASEDI

7. 202431 SITI HAFIZA NUR FARAHANA BINTI AJNI

8. 202252 ATIQAH BINTI KAMARZAMAN

9. 202251 ANNIS SYAHIRA BINTI AHMAD SOBRI

10. 204360 QIAN XING YU

11. 208701 XUE HAN

12. 208717 YANG ZHENG YI

13. 208724 LI YI TING

Question 1
Business operating system in bootstrapping.

Raw Materials
- Polypropylene Raw Materials
- Near Infrared Spectroscopy
- Battery -Acrylonitrile-butadiene-
- Box styrene (ABS)
- Plastic wrap -LED light
- Thick rubber foam - Lithium Ion Battery
- Type C USB cable - USB Type-C Charging
- Rubber pen tip - Box
- Pen case - Plastic Wrap

Supplier Supplier
- International supplier from - International supplier from
China China
- Local supplier from Malaysia - Local supplier from
Malaysia

Manufacturing Manufacturing
NeoBioTech Factory,Penang - NeoBioTech Factory,
Penang

Distribution
- e- commerce platform Distribution
- NeoBiotech website - e-commerce platform
- Courier - NeoBioTech website
- Courier. E.g: Poslaju, J&T

Customer Customer
- Stockists - Stockist
- Pharmacy - Pharmacy
-Electric shop

Consumer
- Diabetic patients Consumer
- Nutritionist - Frontliner of Covid-19
- Dietetics - Food delivery rider
- Health enthusiast - Regular people
Question 2
Explanation on cost savings plan.

Pocket LED Sanitizer

1. Technology guides life The use of LED lights to sterilize items is simple to operate, easy
for the elderly and children to use, and it is convenient for people to carry and not easy to
lose. The opening design adopts wireless use C-TYPE USB cable, which is easy to charge
and portable, so it can be used many times. Different from ordinary disinfectants, it makes
human life more technical and convenient.
2. Saving in production costs and environmental friendliness Made of acrylonitrile-butadiene-
styrene (ABS), the material is lightweight, small, easy to carry and can withstand high
pressure. The most important point is that ordinary plastics that can be recycled can be
reproduced after recycling. Wireless products reduce installation costs, so fundamentally
speaking, production costs are saved. Compared with other disinfection liquids, the
chemical composition is greatly reduced, which is in line with the environmental protection
advocated by the world today.
3. Save time Compared with labor, the production input technology of products can produce
more products at the same time. On the other hand, when people use it, they only need
to click a button, and the product will disinfect any item in an all-round way. Compared
with other disinfection products, it saves people's daily consumption time.

Food Scan Pen

1. Technical upgrading reduces energy consumption and accidents, thus reducing the
rejection rate.

2. Save time looking up information.

Food can be scanned and the user will get a real-time calorie and nutrient content table.

3. Save the cost, if the interface is not applicable, it may need to spend extra money to match.
The interface can be directly connected with the power interface of smart phone, which is
very convenient to use. At the same time, there are two different interface designs,
compatible with iOS, Android and Windows system of smart phone devices, applicable to
a wide range.

4. Saves waiting time.

The Food Scan Pen device generates real-time data, which can be scanned at the same
time to analyze calorie intake and nutrient content data. With previous devices like this,
data analysis waited patiently for results.

5. Save money and save time for publicity.

Reduce the number of salesmen, find well-known YouTube bloggers to recommend the
products, or sell them in stores selling healthy food, and reduce the salary of employees.
Question 3
Explain your pricing strategy choice

Pen Food Scanner

Our choice in pricing strategy of pen food scanner consists of dynamic pricing and variable
pricing. Firstly, we choose dynamic pricing because our target customer is mainly from the high
income and professional professions. We also can change the ups and downs of the product
prices based on time. For example, we can reduce the prices or give discounts for the first launch
to the customer so that people will get the opportunity to grab the products with lower prices than
the original price. Therefore charging the price to the standard customer profile is acceptable
since it uses high technology with high demand qualities. Other than that, this pricing strategy
gives us some preferences from other particular competitors. So, it helps us in setting a price for
a product with a suitable price by comparing with the products that have slightly similar function
with our products.

Secondly, we choose variable pricing for our next strategy as we can set a price more
than one for our target customer. In this variable pricing we have a price lining strategy with distinct
prices from the same categories at which other items with similar function are offered for sale.
This strategy helps to optimize profit by offering different prices for the same product based on
point of sale, a region of sale, date of the sale, and other factors. The same product is sold at a
varying price depending on the demand of the product at a certain time or certain region. Since
the world has been knocked upon by a Covid-19 virus, it is possible that this product will be the
demanding product from health sectors and other professions that are involved with cleanliness
activities. Therefore variable pricing strategy is a good choice for our product as the product
market for this kind of technology has few competitors or none.

Pocket Led Sanitizer

For our Pocket LED Sanitizer, there are also two pricing strategies that we choose which
are penetration pricing and pricing at what the market will bear . Firstly, the penetration pricing is
actually a marketing strategy used by our company to attract customers to a new product since
our Pocket LED Sanitizer has not been created by other companies yet, thus by offering a lower
price during its initial offering we are able to attract customers with our new product along with
cheap prices since our initial price is only RM 20.00. The lower price helps our new product to
penetrate the market and attract customers away from competitors. We will provide
advertisements for introductory low prices for our fresh items, which are the perfect examples of
penetration pricing.

Other than that, we also used pricing at what the market will bear strategy to maximize
our sales. We use this strategy because in markets, there is little or no competition that matches
our product because our product is actually a new item that cannot be purchased by other
companies. We will follow the market sales price in order to maximize the number of customers.
Thus, our company can employ a pricing strategy that optimizes profits. This strategy sets the
price based on the maximum price the market will pay for the product. Since we use this strategy,
our price cannot be more than customers are willing to pay. That is why our Pocket LED Sanitizer
price is only set in RM 20.00.

Question 4
What are your company projected sales, expenses and income from conducting this
bootstrapping strategy?

Food Scan Pen

Company projected sales: 320 pens food scanner
Expense: 320 x RM 79.1 = 25300
Income: Quantity sold x Price per unit = 320 x RM 180 = RM 57600
Gross profit: RM 57600 – RM25300 = RM 32300

Pocket LED Sanitizer

Company Projected sales : 1000 Pocket LED Sentilizers
Expense:1000 XRM 10= RM10000
Income : Quantity sold x Price per unit = 1000 X RM 20 = RM 20000
Gross Profit ：Sales- Total cost=RM 20000 - RM 10000 = RM 10000
Question 5
How much do you able to save your cost per unit for your product and estimated total
saving cost for a month (4 weeks)?

Estimated cost for Pocket Led Sanitizer:

Project Implementation Cost Source of Fund
RM Loan RM Own money RM
Factory rental and maintenance 1000 1000 0
Materials 1000 1000 0
Working capital for one week 700 0 700
Transportation 100 0 100
Advertising 200 0 200
Utilities 200 0 200
Complimentary items 300 0 300
Labelling and packaging equipment 500 0 500
Registration 100 0 100
total 4100 2000 2100

Loan amount RM2,000; loan duration 4 weeks; interest at RM80 per month; RM20.00 per week.
Estimated cost for Food Scan Pen:
Project Implementation Cost Source of Fund
RM Loan RM Own money RM
Factory rental and maintenance 1000 1000 0
Materials 1500 1500 0
Working capital for one week 700 0 700
Transportation 100 0 100
Advertising 200 0 200
Utilities 200 0 200
Complimentary items 300 0 300
Labelling and packaging equipment 500 0 500
Registration 100 0 100
total 4800 2500 2100

Loan amount RM2,500; loan duration 4 weeks; interest at RM100 per month; RM25.00 per
week.

There are few external sources of fund that can be used to save cost per unit product. For
example, cost of transportation can be used the existing assets such as use our own van or car.
Cost of advertising can also be cut off by using our own printer and computer devices. While
utilities, labelling and packaging can be obtained from creditor who can supply raw materials
and equipment on credits. On the other side, registration can be done with partners that willingly
to invest together within the project.
 Question 6
For those groups that have different types of products that require different business
operating systems, you need to consider having at least two business operating systems
in your presentation.

A Business Operating System (BOS) is a company's unique way of doing things--how it operates,
goes to market, produces and deals with its customers. It also gets everyone in the company on
the same page, with the same vision, working toward the same goals. Expectations, processes,
and accountability are defined so that everyone is in sync and operating together like a well-oiled
machine.

➔ Business Operating System 1

Most successful businesses will follow the standard Entrepreneur Operating System to ensure
that the entire company is focusing towards the same goal. This operating method is also to help
leadership teams clarify, simplify, and achieve their vision faster.

Select an implementer: The one who will guide the leadership team to follow the operating plan.

↓
90 minute meeting: Led by the Implementer, the leadership team will be introduced to the system
and ensure that everyone has the same mission and target.

↓
Focus day: A day to equip the leadership team with the resources they need to explain who is
responsible for what, set goals, strengthen communication, address problems, and monitor key
metrics. Set a new tool or system that ensures efficiency in managing the company’s product.

↓
Vision building day: Another day with the leadership team to review and sharpen Focus day
tools. The tool will consist of our company, Neo BioTechnology, visions, our values and what we
are targeting for the future. The leadership team will also revise our marketing strategy and also
the employee and staff assessments to evaluate their skills and ability. The leaders will then set
plans for their 1-year target, 3-year target and 10-year target.

↓
Quarterly sessions: Every 90 days, spend a day with the leadership team to assess their results,
refocus, set targets for the next 90 days, and address any concerns that may be impeding
progress.

↓
Annual sessions: Every year, the leadership team spends two days working on team wellbeing
and updating the vision and strategy for the coming year and quarter.
➔ Business Operating System 2
NeoBioTechnology business operating system will include 5 important characteristics that we
measure highly to meet our key objectives, minimized efficiencies and as well to streamlines the
workflow. The important characteristics are:

Processes

NeoBioTechnology is a company that emerges from the manufacturing and technology industry
to produce high technology health care products. To maximise the efficiency of processing times
during manufacturing, shipping, as well as the productivity of our business , our company has
come up with a worker-management policy and procedures for each department. This will help
the workers in organizing everyday tasks and each project. We also ensure that each entity in the
company is well-understood and able to apply each policy and procedure in resolving any
problems to make sure it is aligned with the company's vision and mission.

Systems

In advance, NeoBioTechnology company has acquired inventory management software

programs, called as ‘NeoBiolis’ to record all the databases and information that are accessible
and highly secured. ‘NeoBiolis’ is a system that will save the records that include the accounting
databases, marketing-related database, human resource database and other department’s
database. Thus, our company’s management can monitor internal and external processes as well
as be able to detect any glitches and address the issues quickly through ‘NeoBiolis’. On the other
hand, this intuitive and well-constructive system enables us to collect, manage as well track our
employee and customer data. Lastly, our company has created an application for our customer.
We find our customer’s opinions are very valuable for our company;s growth. Thus, this
application is important because we can receive our customer’s feedback and complaints to
improve our product in future.

Roles

A technology company like us has put a strict criteria in order to hire the best candidates for the
job. Thus, we manage to employ the right people in each department. We also have provided a
pre-defined job description by the time we are hiring them. Thus, our workers can know their work
scope and how their job can accomplish our company’s vision and mission.

Skills

NeoBioTechnology has already employed the staff that match their roles in each department to
create a productive environment. However, our company needs trained and experienced staff,
therefore, we have provided an internal training and mentorship program to ensure that our staff
are always developing their skills. Through these programs, the senior staff can help the junior
staff to perfect their skills.

Structure.

Our organizational structure includes various departments, which includes the financial
department, research and development department, human resources department, logistic
department, production department, software developer department and marketing departments
correspondingly to our abilities and professionalism. Each member of the department has given
their job descriptions which includes all aspects of their task. Therefore, our workers can pay
attention to the aspects of their job. On top of that, we develop all of this department to be a help
to each other and become the key factor to fulfill the company’s vision and mission.