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Year 2011 Business Plan Proposal

GROUP MEMBER (Gang 17) MOHD. NORIZAM MD. SALLEH IC NO: 670703-01-6045 STUDENT ID:CGS00534317 REIDZUAN BIN AHMAD IC NO: 691218-04-5275 STUDENT ID: CGS00541817 MUHAMMED FUSEINI INUSAH PASPORT NO: D 0002277 STUDENT ID: CGSGH00001917 KAMALUL BAHARI ABDUL JALAL IC NO: 830213-06-5485 STUDENT ID: CGS00534017

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CONTENT
PROPOSAL TITLE/GROUP 2. BACKGROUND 3. OBJECTIVE 4. OUR FINDING 5. SALES & PROFIT COMPARISON 6. COMPARISON GRAPHS 7. THE TECHNOLOGY 8. INVESTMENT REQUIRED 9. RECOMMENDATION 10. REASONS
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Proposal Title
To Participate in ´High Speed Broad Band to Homesµ Project

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Background
Company current conventional market growth are almost stagnant. Therefore this paper is to present the Proposal Business Plan for 2011 to the top management after carrying out a study in determining a new market/technology to explore for company future expansion, growth and survival.

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Objectives
To secure mandate and approval from top management on the followings; 1) To participate in the ´High Speed Broad Band to Homesµ projects. 2) To investment in Micro Trenching Technology.

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Buying micro trenching machines Setup teams to carry out job using this technology.

Our Findings ´High Speed Broad Band to Homesµ is booming at the moment. With most of the ´Telcosµ are participating, the market is growing so fast that the demands are currently greater than the supply. RM 15 Billion is to be spent by ´Telcosµ to build up the infrastructure and the entire system in the next 10 to 15 years. Currently the contractors are insufficient and this is an excellent opportunity for us to gain the market share and a defensible position in the industry.

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Sales & Profit Comparison Between the Past & Forecast ² With HSBB to Homes
Past Three Years Sales 2008 (RM) 3,500,000 3,025,595 474,404.8 2009 (RM) 3,675,000 3,274,150 400,850.3 2010 (RM) 3,858,750 3,545,090 313,659.6

Sales Total Cost Net Profit (Before Tax)

Next Three Years Sales Forecast 2011 2012 (RM) (RM) 12,100,000 13,310,000 10,065,198 11,054,898 2,034,801.6 2,255,101.8 2013 (RM) 14,640,000 12,143,286 2,496,714.1

Sales Total Cost Net Profit (Before Tax)

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Comparison Graphs Between the Past & Forecast ² With HSBB to Homes
Past Peformance
RM4,500,000.00 RM4,000,000.00 RM3,500,000.00 RM3,000,000.00 RM2,500,000.00 RM2,000,000.00 RM1,500,000.00 RM1,000,000.00 RM500,000.00 RM0.00 2008 2009 2010 RM16,000,000.00 RM14,000,000.00 RM12,000,000.00 RM10,000,000.00 Series1 Series2 Series3

Past Performance ‡Existing sales increasing ‡But the profit started to decline

Forcast Sales

New Market ‡Sales increasing ‡Profit also increasing

RM8,000,000.00 RM6,000,000.00

Sales Gross Net

RM4,000,000.00 RM2,000,000.00 RM0.00 2011 2012 2013

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The Technology Comparison

Micro Trenching Technique

Conventional Open Cut Method

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Finish - Comparison
Conventional Open Cut Method - Finish

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Micro Trenching - Finish

Micro Trenching Typical Works
Typical Micro Trenching Works

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Install Micro Duct Inside the Micro Trench

Investment Required

Aprox. RM 2.5 Million cash to cover first three month overhead/project cost RM 2 Mil. from company and aprox. RM 500k from invoice financing or revolving working capitol. Proposed new machineries/vehicles RM 478K for 2011 and subsequent RM 119K each year for 2012 and 2013. Additional manpower cost of RM 1,536 Mil. each years for 2011-13.

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Recommendation
To participate in ´High Speed Broad Band to Homesµ. Invest in the new technology (micro trenching)

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Reasons;
Increase sales by 245% in the first year and subsequently 10% each years. Increase profit by ~612% on the first year and about 11% on subsequent years. Due to the shortfall on the capable contractor we anticipate this business is going to be our ´Starsµ referring to ´BCG Growth ² Share Matrixµ. Have very big growth potential if we are willing to invest more.

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