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ENTREPRETEURSHIP
UCS 1343
BUSINESS REPORT
MAY 2014
PREPARED BY:
ADRI BIN AYUB 012013051999
VIKNESWARY SUNDRAM 012013052001
NURHANIS HAIRANI 012013051710
MUZAINA BINTI BUSIRI 012013052000
FAIZUDDIN BIN ABDULLAH 012013051955
SUBAN A/L RETINASAMY 012013030012
CHEE YEE JUIN 012013050753
KAKAJAN BABAYEN 012013050703
VIVIYANIE BINTI MOHD FAIRUL 012011030165
FAAZILA AIDA 0120100110075
PREPARED FOR:
Stick N Grill Sdn.Bhd
Lot 16-68, Jalan P Ramlee, Kuala Lumpur City Centre,
Kuala Lumpur, Wilayah Persekutuan
Kuala Lumpur,Malaysia.
Tel: 03-80812699
Our ref: SA/ 001 /46/ 4/ 9
Your ref:
Date:
General Manager
Maybank Berhad,
Aras 18, Menara Maybank,
100, Jalan Tun Perak,
50050, Kuala Lumpur.
Tel: 03-2074 7418
Dear Sir,
BUSINESS LOAN APPLICATION
I, Faizuddin bin Abdullah, as the General Manager of Stick N Grill Sdn.Bhd, would like to draw your attention to the matter mentioned above.
For your information, we are a new restaurant with a plan to start a business venture that serve western cuisine around Kuala Lumpur and to expand to other areassuch as Selangor and Johor.
Our business is located at Lot 16-68, Jalan P. Ramlee, Kuala Lumpur City Centre, Kuala Lumpur and all the facilities needed to operate our business can be found
there. This business has the potential to gain profits due to the unique of our food that cannot be found in any restaurant.
However, we do not have sufficient amount of capital to run the business. This business needs capital of RM 300,000.00. As for now, we only have an amount of RM 200,000.00. Therefore we would like to apply for a loan from your bank for an amount of RM 300,000.00.
We would be much obliged if you could provide a business loan. We look forward to hearing from you soon. I can be contacted at 03-8081 2699 if you wish to discuss any of the above points. We are ready to furnish you with additional materials withregards to this matter.
Thank you,
Yours faithfully,
……………………………
(Faizuddin bin Abdullah)
General Manager
Stick N Grill Sdn.Bhd
BUSINESS PLAN
Stick N Grill Sdn.Bhd
Consumer first choice
30th October 2014
Faizuddin bin Abdullah
General Manager
Stick N Grill Sdn. Bhd
Lot 16-68, Jalan P Ramlee, Kuala Lumpur
City Centre, Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur,Malaysia.
Telephone number: 03-80812699
Fax number: 05-4898 0088
Table of Contents
Item Page1.0 Introduction
1.1 Name of the company
1.2 nature of business
1.3 Industry Profile
1.4 Location of the business
1.5 Date of commencement
1.6 Factors in selecting the proposed
venture
1.7 Future prospect of the business
2.0 Purpose of Preparing a Business Plan
3.0 Business/Company Background
3.1 Name of the company
3.2 Address (business and correspondence)
3.3 Telephone number/Fax number/E-mail
address
3.4 Form of business
3.5 Main business activities
3.6 Date of commencement
3.7 Date of registration and registration
number
3.8 Name of bank and account number
4.0 Background of
Owner/Partners/Directors
4.1 Personal particulars of partners
4.2 Partnership agreement
5.0 Background of Proposed Object
5.1 Physical location
5.2 Price of premise
5.3 Availability of manpower
5.4 Transportation facilities
5.5 Distance from customers
5.6 Basic amenities
6.0
Organization/Management/Administration
Plan
6.1 Organization’s mission, vision and
objectives
6.2 Organizational chart/structure
6.3 Manpower planning
6.4 Schedule of task and
responsiblilities
6.5 Remuneration plan
6.6 List of office equipments and
supplies
6.7 Administrative budget
7.0 Marketing Plan/Analysis
7.1 Description of products or services
7.2 Target market
7.3 Market size
7.4 Competitors
7.5 Market share
7.6 Sales forecast
7.7 Marketing strategy
7.8 Marketing budget
8.0 Operational Plan/Production Strategy
8.1 Operational/innovation process
8.2 Process flow chart
8.3 Production schedule/Capacity
planning-output in units
8.4 Material requirement
8.5 Machine and equipment requirement
8.6 Operation layout
8.7 Location of operations
8.8 Operational overheads
8.9 Operational budgets
9.0 Financial Plan/Strategy/Analysis
9.1 Project implementation cost schedule
9.2 Schedule of financial sources
9.3 Fixed assets depreciation table
9.4 Loan amortization
9.5 Hire purchase repayments schedule
9.6 Pro forma cash flow statements
9.7 Pro forma profits and loss
accounts/income statements
9.8 Pro forma balance sheet
10.0 Conclusion/Summary and
Recommendation
11.0 Appendices
Executive Summary/Abstract
Stick N Grill Sdn.Bhd provides variation of western cuisine at
a reasonable price. Our main objective is to become a market
leader of food industry in Malaysia within 10 years from now
and to make our restaurant become consumer first choice. The
company plans to distinguish itself from other competing
restaurant as our restaurant provides variation in western
which indirectly involve our specialization in that particular
food.
Our restaurant will be a luxurious in a form of westernizes
culture that located in one of the famous tourist attraction
in Kuala Lumpur. Our restaurant will serve all segments of
people either tourists or citizen itself. Currently there is a
competition in the same category as Stick N Grill across
Malaysia. We took this opportunity in monopolize our
geographic area in Kuala Lumpur by reaching out to tourist and
residents from any place.
Stick N Grill will operate seven days in a week under
experienced management, headed by our General Manager,
Faizuddin bin Abdullah. The company uses an organizational
structure based on functions in the organization. The
restaurant will have a Financial Advisor, Head Chef and
Marketing Manager. This structure suits Stick N Grill Sdn.Bhd
as this organization emphasizes functional specialities to
perform tasks.
This document will demonstrate the need for a business of this
calibre in Kuala Lumpur and it chances for success. It will
serve as a road map that will set the course for further
planning and for the implementation process. Anticipated
financing is RM 200,000.00 for the total start-up cost of RM
40,500.00, with RM 33,100.00 to be used as an operating funds
for the first months. This financing will help ensure a timely
start to the business in order to take advantage of the busy
streets in Kuala Lumpur.
1.0 Introduction1.1 Name of the company
Stick N Grill Sdn. Bhd
1.2 Nature of the business
Stick N Grill Sdn. Bhd is a private company that
focuses on western cuisine that meets the need of the
customers. We specialize in providing authentic and
quality western foods.
1.3 Industry Profile
The main idea for developing this business is due to
lack of western cuisine in Malaysia. We find that many
restaurants in Malaysia served common western food
such as Chicken Chop and Fish and Chips which there is
no variation in serving the customer the unique
western cuisine from America and Europe. This would
give us an opportunity in bringing variation in
western cuisine that meets the needs of customers.
Other than that, our restaurant also sells at
reasonable price which give to all segments of
customer.
1.4 Location of business
Stick N Grill Sdn. Bhd is located at Suria, Kuala
Lumpur Convention Centre (KLCC). We chose this
location because it is a strategic location for the
customer to find our place. KLCC is well known by
Malaysia due to the twin towers that located besides
KLCC. Besides, this location considered as a tourist
attraction for them to visit and convenient for
customer to find sufficient parking lots as provided
by KLCC.
1.5 Date of commencement
Our company will commence operations on 30th October
2014.
1.6 Factors in selecting the proposed venture
We chose this business because there is an opportunity
in introducing variety of western cuisine that is not
yet exists in Malaysia. We believe that many of our
competitors served limited choice of western foods
that enable us to take an advantage in bringing new
western food in the market with reasonable price. We
also have confidence that our customers will love our
authentic food.
1.7 Future prospects of the business
Our future plans for this business is to open more
branches in Malaysia. Besides that, we hope that our
business operation will be recognized throughout
Malaysia.
2.0 Purpose of Preparing the Business Plan
This business plan is prepared by Stick N Grill Sdn. Bhd for
the purpose of obtaining a working capital loan from Maybank
Berhad for an amount of RM 300,000. This business plan is also
prepared as a guideline for managing the proposed venture.
3.0 Business/Company Background
Name of the business: Stick N Grill Sdn. Bhd
Business address: Lot 16-68, Jalan P Ramlee, Kuala Lumpur City
Centre, Kuala Lumpur, Wilayah Persekutuan
Kuala Lumpur, Malaysia.
Correspondence address: 54, Jalan USJ 4/1M, Subang Jaya,
47600, Selangor Darul Ehsan.
Telephone number: 03-8081 2699
Fax number: 05-4898 0088
Email address: [email protected]
Form of business: Private limited company
Main activity(s): Restaurant that specialize on western
cuisine
Date of commencement: 10th October 2014
Date of registration: 30th June 2014
Registration number: B1-567655
Initial (own) capital: RM 200,000
Name of bank: Maybank Berhad
Bank account number: 1173566433
4.0 Background of Partners
4.1 Personal Particulars of Partner 1:
i. Name of partners: Vikneswary A/P Sundram
ii. Identity card number of the partners: 850708-14-
6291
iii. Permanent address of the company: Lot 16-68,
Jalan P Ramlee, Kuala Lumpur
City Centre, Kuala Lumpur,
Wilayah Persekutuan Kuala
Lumpur, Malaysia.
iv. Correspondence address: 54, Jalan USJ 4/1M, Subang
Jaya, 47600, Selangor Darul
Ehsan.
v. Website address: stickNgrill.com.my
vi. E-mail address: [email protected]
vii. Telephone number:
viii. Date of birth: 08/07/1985
ix. Age: 29
x. Marital status: Married
xi. Academic qualifications: A Level in Science (2005-
2006)
Degree in Finance (2006-2009)
Charted Financial Analyst (2010-
2011)
xii. Courses attended: Establish Unique Business
(2011)
Journey to success (2012)
xiv. Experience: 2 years as Financial Officer in
Petronas Twin Tower
xv. Present occupation: Financial Analyst in Yap Seng
Berhad
xvi. Capital contribution: RM 100,000
Personal Particulars of Partner 2:
i. Name of partners: Chen Yee Juin
ii. Identity card number of the partners: 751012-10-
4675
iii. Permanent address of the company: Lot 16-68,
Jalan P Ramlee, Kuala Lumpur
City Centre, Kuala Lumpur,
Wilayah Persekutuan Kuala
Lumpur, Malaysia.
iv. Correspondence address: Jalan Akuatik 77F/16, D’
Kayangan, Seksyen 13, 4500, Shah
Alam.
v. Website address: stickNgrill.com.my
vi. E-mail address: [email protected]
vii. Telephone number:
viii. Date of birth: 12/10/1980
ix. Age: 39
x. Marital status: Single
xi. Academic qualifications: Foundation in Business
(1992-1993)
Degree in Investment Analyst
(1993-1996)
Master Degree in Economics
(2000-2002)
xii. Courses attended: Entrepreneurship Course (2009)
xiv. Experience: 4 years as Investment Analyst in Auto
Air Holdings Bhd
xv. Present occupation: Stock Broker in Bursa Saham
xvi. Capital contribution: RM 100,000
4.2 Partnership Agreement
The attached agreement is made and signed by all
partners stated below. This agreement is
witnessed by a solicitor and defendant that have been
appointed for this purpose. Below are the details
of the agreement.
4.2.1 Name of the business
Stick N Grill
4.2.2 Form of business
Partnership
4.2.3 Location of business
Lot 16-68, Jalan P Ramlee, Kuala Lumpur
City Centre, Kuala Lumpur Wilayah
Persekutuan Kuala Lumpur,
Malaysia.
4.2.4 Equity contribution
The capital of our business is RM 200,000
and the equity contributions are as follows.
1) Vikneswary Sundram RM 100,000
2) Chen Yee Juin RM 100,000
4.2.5 Financial matters
The profit and loss of the company is
distributed among the shareholders according to
the percentage of their capital equity. If one of
the shareholders is declared bankrupt or has many
liabilities or has been proven cheating, all the
other shareholders have the right to remove the
guilty shareholder.
If a shareholder does not want to continue his
or her involvement in the company, his or her
capital will be given back after the profit and loss
of the company has been taken into
consideration.
The financial manager keeps all the accounts
and all shareholders are allowed to view the
accounts.
4.2.6 Management and position
1) Vikneswary Sundram Finance Manager
2) Cheen Yee Juin Operations Manager
4.2.7 Death and dissolvement
Dissolvement depends on the agreement of all
the shareholdersin matters concerning
death or loss of sanity. However, the shareholder
should get the profit or capital until the
shareholder quits.
4.2.8 Labour rights
All shareholders should acknowledge the rights
of staff according to the law.
4.2.9 Other matters
Dismissed notice should be given by the
shareholder who wishes to quit from the business
within 30 days from dismissed date and agreed by
other shareholders. The contribution by the
shareholder can be claimed whether the
company gains profit or loss depending on the
ratio of contribution. This dismissal will be
enforced within 3 days of notice.
4.2.10 Signature of shareholders:
1) Vikneswary Sundram ………………….. 2) Chen Yee Juin …………………..
5.0 Background of the Proposed Project
Stick N Grill Sdn. Bhd has chosen Suria KLCC, Kuala Lumpur as
the location for selling its
products. The following section will explain the details of
chosen location.
5.1 Physical Location
Our premise is located in the famous shopping complex
which known as Suria KLCC that is located in Jalan
P.Ramlee, Kuala Lumpur. Suria KLCC occupies space
underneath Petronas Twin Towers and shares the parking
lot with it. The mall is accessible by KLCC LRT
Station. It also serves as one of the bus hubs for Bandar
Buses of Rapid KL. The mall also has a tunnel link to
Kuala Lumpur Convention Centre which in turn connects to
Bukit Bintang shopping district. This area has been well
known by tourist and Malaysian citizen, thus it is a
strategic location for the customers to find our place.
Furthermore, our premise is in good condition and well-
maintained. The size of our premise is 1,200 sq. feet
which consists of kitchen, customer table, smoking zone and
cashier.
5.2 Price of premise
We are renting the premise with a fixed rental rate of RM
50,000 per month.
5.3 Distance from the source of raw materials
This location was chosen because of its proximately to
road transportation where the cost of production can be
at a minimum level. The sources of our raw materials are
located in Kuala Lumpur and Selangor, therefore the
proximity to both public transportation systems ensures
that our raw materials are made available to us within a
relatively short distance and at minimal cost.
5.4 Availability of manpower
The location we chose offers credible workforce from
well-planned state such as Kuala Lumpur and Selangor. Our
labours are from many races and have good communication in
Malay and English. Hence, we have the capacity to increase or
decrease manpower depending on the job size and schedule.
5.5 Transportation Facilities
KLCC has been well-known by their public transport which
consists of Rapid LRT, Sunny Taxi and Rapid KL buses. They
have been providing their services as public
transportation for the past 15 years to the Selangor and
Kuala Lumpur residents.
5.6 Distance from customers
Our business is located near to public transportation and
commercial areas with the closest being 500 metre away
from our location. Customers can reach our premises by
three types of public transportation such as buses, taxi
and LRT and customer can also use their own vehicle where
there are sufficient of parking lots underneath the
shopping mall.
5.7 Basic amenities (electrical, water and telephone
facilities)
Our premise is located near transportation and other
shopping complex. All facilities and amenities such as
water, electricity, telephone lines and transportation are
available here. With all these facilities, we believe we
can operate our business properly. Kuala Lumpur is a
location that is fully equipped with basic amenities. All
places in Kuala Lumpur are connected by roads and
commercial buildings. Dewan Bandaraya Kuala Lumpur (DBKL),
Syarikat Bekalan Air Selangor (SYABAS) and Tenaga Nasional
Berhad (TNB) have set up water and electricity in the whole
area of Kuala Lumpur. Trash and garbage collection are
handled by DBKL. Telephone line and Internet access are
provided by Telekom Malaysia Sdn. Bhd (TM). Other
amenities that are available in Kula Lumpur are telephone
booths, public transportation, police station, fire
station, bus stops, mosque, school, public attraction
and public toilet. Other amenities which are procided by
private or individual parties are clinics, bank, Hindu
temple, Buddhist temple, petrol station, food court and so
forth.
6.0 Organization/Administration/Management Plan
6.1 Organization’s mission, vision and objectives
Table BP 1.1 shows the logo used by Stick N Grill
Sdn.Bhd and describes the company’s vision,
mission and objectives.
Table BP 1.1 Logo, vision, mission and objectives of Stick N Grill Sdn. Bhd
Logo
Vision To become consumer first
choiceMission To become a market leader of
food industry in Malaysia
within 10 years.Objectives 1) To set up franchise
network across
Malaysia.
2) To perform most variety
choice and reasonable price
of western cuisine in
Malaysia.
6.2 Organizational chart/structure
Stick N Grill Sdn. Bhd uses an organizational
structure based on functions in the organization.
The firm is divided into general manager. Under general
manager, it is divided by three which is finance and
administrative, marketing and
operation. This structure is a starting point for Stick N
Grill before expanding its business to franchising.
We believe that this organization structure will improve
individual specialities in order to perform tasks. This
organizational structure will cover all aspects
of the management as a business entity. Figure BP 1.1
illustrates our proposed structure.
Top Management
Finance and Administrative Division
Marketing Division
BOARD OF DIRECTORS
GENERAL MANAGER
FINANCE ANDADMINISTRATIVE
DIVISIONMARKETING OPERATION
FINANCE ANDADMINISTRATIVE
FINANCE ANDACCOUNTING
ADMINISTRATIVE
FINANCIALADVISOR
ACCOUNTINGQUALITYCONTROL
ADMIN
MARKETING DIVISON
Operation Division
Figure BP 1.1 Organizational Structure of Stick N Grill Sdn. Bhd
6.3 Manpower planning
Stick N Grill Sdn. Bhd has two partners and they manage and
execute the operation of the business as shown in Table BP
1.2. Stick N Grill Sdn. Bhd has one general which under
finance and administrative division, it has one financial
advisor and one accounting. Under marketing division, it has
one marketing manager. Under operation division, it has one
head chef, seven kitchen helper, five beverages, one front
office, one cashier and eight servers.
Table BP 1.2 Position and number of managing personnel in Stick N Grill Sdn. Bhd
MARKETING MANAGER
HEAD OF
HEAD CHEF FRONT OFFICE
KITCHEN BEVERAGES SERVERCASHIER
Position Number of personnelGeneral Manager 1Financial Advisor 1
Accounting 1Marketing Manager 1
Head Chef 1Kitchen Helper 7
Beverages 5Front Office 1
Cashier 1Server 8
6.4 Schedule of tasks and responsibilities
Each stakeholder has his own responsibilities to execute the
operations of the business. It is very important for every
stakeholder to know their tasks and responsibilities in the
company as it will guide them in accomplishing their tasks and
increases their specialities. Table BP 1.3 describes the tasks
and responsibilities of every position. The following
functions and responsibilities have been identified and will
be delegated to the respective individual to ensure the smooth
operation of the business.
Task/Position Responsibilities/Job PositionGeneral Manager - To plan, implement and
control the overall
management of the business.
- To plan and monitor the
strategic progress of the
business.
- To be accountable for the
overall performance of the
business.Financial Advisor - To plan and direct the
company financial stability.
- To monitor the progress of
company transactions.
- To advise top management in
terms of financial so that
money stability will secure.Accounting - To develop a daily report of
company financial activity.
- To make forecasts and
accounts for the company.Marketing Manager - To develop advertising basis
and marketing implementation.
- To implement promotion and
coupon attraction.
- Evaluate daily customer
satisfaction.Head Chef - To control the operation of
kitchen
- To be responsible in
directing and instructing
kitchen stakeholders.Kitchen Helper - Received instruction from
head chef
- Cook western food based on
customer orders.Beverages - Received instruction from
head chef
- Make beverages based on
customer orders.Front Office - To control the operation of
dining restaurant.
- To be responsible in
directing and instructing
server (waiter/waitress).Cashier - Handle daily transaction
from customer to restaurant.Server - Take customer order daily.
6.5 Remuneration plan
For our company, we have chosen the EPF (Employee Provident
Fees) and SOCSO (Social Security Organization) scheme to be
given to all employees. EPF is a compulsory savings for
employees so that they will have money to support themselves
once they retire. As a general guideline, employers are
required to contribute at least 12% of their basic salary and
company need to contribute 3% of their profits. Stick N Grill
Sdn.Bhd also provides SOCSO (Social Security Organization)
contributions to ensure that employees receive compensation in
situations of work-related accidents or illness. Table BP 1.4
illustrates the remuneration plan for each employee in Stick N
Grill Sdn.Bhd.
Table BP 1.4 Remenuration Plan
Position Number of
Employees
Remunerat
ion per
month/
Monthly
Salary
(RM)
EPF
Contribut
ion
(12%)-
Employee
SOCSO
(2%) (RM)
TOTAL
(RM)
General
Manager
1 4,600.00 552.00 92.00 3,956.00
Financial
Advisor
1 4,200.00 504.00 84.00 3,612.00
Accountin
g
1 4,200.00 504.00 84.00 3,612.00
Marketing
Manager
1 3,500.00 420.00 70.00 3,010.00
Head Chef 1 3,000.00 360.00 60.00 2,580.00Kitchen
Helper
7 1,200.00 144.00 24.00 1,032.00
Beverages 5 1,000.00 120.00 20.00 860.00Front
Office
1 2,500.00 300.00 50.00 2,150.00
Cashier 1 1,500.00 180.00 30.00 1,290.00Server 8 800.00 96.00 16.00 688.00TOTAL 27 26,500.00 3,180.00 530.00 20,855.00
6.6 List of equipment and supplies
Stick N Grill Sdn.Bhd has bought dining furniture, fittings
and equipment from Nailul Furniture Mall as listed in Table BP
1.5 below. We bought seventy sets of dining furniture, one
cash register, one system order computer and two kitchen
equipment sets.
Table BP 1.5 List of equipment and furniture
OFFICE EQUIPMENT AND FURNITURENo. Type of Equipment Quantity Price/Unit
(RM)
Price per
unit
(RM)
Total Cost
(RM)
1 Dining furniture 70 sets 1,200.00 84,000.002 System order
computer
1 sets 1,100.00 1,100.00
3 Cash register 1 sets 800.00 800.004 Kitchen equipment 2 sets 20,000.00 40,000.00
TOTAL 125,900
6.7 Administrative budget
Aside from dining furniture, fittings and equipment, Stick N
Grill Sdn.Bhd also purchased restaurant supplies such as
stationary and paper for the restaurant purposes as indicated
in Table BP 1.6. The administrative budget also includes
rental for shop lot to be paid every month to the Suria KLCC
Management. A rental deposit equal to five months’ rent and
rent utilities deposit for water, telephone and electricity
are also included.
Table BP 1.6 Administrative expenditure
Administrative expenditureRM RM
Fixed Assets/Capital expenditureDining Furniture 125,900
.00125,900
.00Working Capital/Monthly expenditureSalaries 26,500.
00Restaurant Supplies 2,500.0
0Rental 50,000.
00Utilities 1,500.0
080,500.
00Other ExpendituresRental Deposit 250,000
.00Utilities Deposit 3,000.0
0
253,000
.00TOTAL 459,400
.00
7.0 Marketing Plan/Analysis
7.1 Description of products and services
Stick N Grill is a restaurant that specializes on western
cuisine. We serve variation kinds of food along with
reasonable price. Our materials before producing to finished
goods are imported from foreign countries. Some of our foods
and beverages are not even exist in Malaysia, therefore we
would like to grab this opportunity in bringing new western
food in Malaysia with reasonable price. Our foods and
beverages is suitable for all types of customers including
veggie. Our restaurant was developed to fulfil the demands and
satisfaction of customer.
7.2 Target market
Stick N Grill Sdn. Bhd. Is a new company that is situated at
Suria, Kuala Lumpur Convention Centre (KLCC). We chose this
location because it is a strategic location for customers to
find our place. Our target market would be both local and
foreign customer of all ages. Since we are specialize in
serving quality western foods, we will get a big crowd
especially from westerners and also people who are looking for
a fine western dining with a spectacular view of KLCC scenery.
7.3 Market size
Stick N Grill intends to cater to a wide group of people. We want everyone to feel welcome and relaxed in a cozy atmospherewith a wide and varied menu. It is our goal to have "somethingfor everyone" every day on our menu. In looking at our market analysis, we have defined the following groups as targeted segments.
The Business Man: They work hard all day and often stay overnight in a strange city. He needs a competent establishment that helps impress his clients and prospects. Afterward, they want to relax and use the money they are making. They are the people that spend the most on drinks, food and tips.
Happy Couples: The restaurant will have an intimate, romantic,sophisticated atmosphere that encourages people to bring datesand to have couples arrive. Stick N Grill’s wants to be a search place where people meet each other and develop a network. These young couples are generally very successful butbalanced and won't be spending as much on drinks.
The Family: The perfect place for a family dinner. Families will come for the accommodative menu and friendly service. Theexcellent value in their meals will keep Stick N Grill’s in favor with the parents.
High-end Singles: We will attract them with our decor and layout. Our international menu, striking artwork, wine tasting
evenings and events, excellent service and engaging clientele will confirm the feeling of being in "the coolest place" in Kuala Lumpur.
Tourists: Kuala Lumpur is a city that attracts many vacationers for the whole year. Stick N Grill will be a destination with its attractive atmosphere, international menu, and outdoor patio.
7.4 Competitors (Strength and Weaknesses)
There are many competitors that we have to compete due to the restaurant that is on the same industry which is western cuisine. Table BP 1.7 shows the strength and weaknesses among competitors.
Table BP 1.7 Competitors’ strengths and weaknesses
Competitors Strength WeaknessTony Roma’s - Pioneer of baby
back ribs
- Award winning
dishes based on BBQ
ribs.
- There are more
than 250 locations
in 25 countries.
- Adapted to
international
market.
- Average level of
customer service
compare to big
hotels chain.
- Limited drink
menu can be concern
for a few
customers.
- Weak in
advertising.
T.G.I Fridays - A popular brand
name and brand
popularity.
- It is expensive
which target
certain segments of
- Separate menus
for lunch, dinner,
fast food and
alcohol.
- Nearly 1000
locations
worldwide.
customer.
- Less advertising
compared to
competitors.
7.5 Market share
Stick N Grill Sdn.Bhd speacilizes its food more on western cuisine that are from Europe and America. It is located in thegolden triangle of a shopping mall in Kuala Lumpur. We are notable to identify real market share for our business as the data is ambiguous. However, we have taken our market share as 10% of the number of population in the age of 25-65 years old who live or work in Kuala Lumpur and the areas are particularly in Jalan P.Ramlee.
Competitors
Before Entrance Adjusted Market After EntrancePercentage of market share
Amount (RM)
Percentage of lossof marketshare
Percentage of market share
Amount (RM)
Tony Roma’s
45% 90,000.00 10% 35% 70,000.00
TGI Fridays
55% 110,000.00
5% 65% 130,000.00
TOTAL 100% 200,000.00
100% 200,000.00
7.6 Sales forecast
The sales forecast for three consecutive years of the competitors of Stick N Grill Sdn.Bhd is shown in Table BP 1.9.
Table BP 1.9 Sales forecast for three consecutive years of the main competitors
Month Sales Forecast for 3 Consecutive YearsRMTony Roma’s (KLCC) TGI Fridays (KLCC)
January 500,000.00 700,000.00February 550,000.00 780,000.00April 490,000.00 690,000.00May 500,000.00 700,000.00June 650,000.00 900,000.00July 400,000.00 500,000.00August 590,000.00 810,000.00September 550,000.00 750,000.00October 450,000.00 650,000.00November 590,000.00 690,000.00December 850,000.00 1,000,000.00TOTAL YEAR 1TOTAL YEAR 2TOTAL YEAR 3
7.7 Marketing Strategy
The marketing starategy of Stick N Grill Sdn. Bhd is summarized in Table BP 1.10
Table BP 1.10 Marketing Strategy
Marketing Strategy
Description
Institutional Marketing
Promote the life style and entertainment value through blogging and social media
Program Marketing-Product and Retention Strategy
-Establish customer retention and customer engagement programs-Establish sales goals for staff to achieve-Establish promo hours to attract customer during non-peak hours
Promotion Strategy
As for our promotion strategy, Stick N GrillSdn.Bhd uses advertising method as the firststep in promoting our restaurant. There willbe printed advertisements in brochure, magazines and newspapers soon. We have also visited Petronas Twin Towers office where we
give discount coupon of 20% in our restaurant.
Pricing Strategy Our restaurant can be categorized as luxuy but it never came across us in increasing the price or target upper class customers. From the start, we are restaurants that offered to each audience, in this case, Stick N Grill have the most reasonable prices than the competitors.
7.8 Marketing budget
The marketing budget of Stick N Grill Sdn.Bhd includes capital, monthly and other expenditures as shown in Table BP 1.11.
Table BP 1.11 Stick N Grill Sdn Bhd marketing expenditure
MARKETING EXPENDITURERM RM
Other ExpendituresDiscount Coupon Rate
30,000.00
Promotion 4,000.00Grand Opening 5,000.00TOTAL 39,000.00
8.0 Operational Plan / Production Strategy
8.1 Operational/innovation process
To date, we have completed our market research and lease has been secured located in Suria KLCC area. Food and furniture purchased have been pre-negotiated. The next steps in the operational plan are as follows :
8.1.1 Sign lot lease within 30 days
8.1.2 Sign equipment and raw material purchased order
8.1.3 Accept delivery of equipment and raw material
8.1.4 Received employee and training chef
8.1.5 Print marketing material
8.1.6 Open business
8.1.7 Launch advertising and promotional plan
8.2 Process flow chart
Process flow chart for Stick N Grill Sdn. Bhd.
ORDER RAW MATERIAL FROM THE SUPPLIER
SETTLE SHIPPING AND DELIVERING OF RAW MATERIAL
EMPLOYEE CHECK THE QUANTITY OF THE DELIVERED PRODUCT
RECEIVED DELIVERED RAW MATERIAL AND STOREDIT INTO FRIDGE
TAKE ORDER FROM CUSTOMER
PREPAIRED AND COOK MENU THAT CUSTOMER WANT
READY TO BE SERVED
8.3 : Production schedule/capacity planning
NO TIME OF PRODUCTION QUANTITY OFPRODUCTION
GOODS PER MONTH
1. MONTHLY PRODUCTION 30 BOX OF FISH(1 BOX=30KG FISH)
900KG FISH
70 BOX OF CHICKENS(1 BOX=50KGCHICKENS)
3500KG CHICKENS
100 BOX OF MEATS(1 BOX=60KG MEATS)
6000KG CHICKENS
40 BOX OF LAMBS(1 BOX=40KG LAMBS)
1600KG LAMBS
8.4 Raw material requirement
We calculated our raw material based on our sales per month. Our monthly sale is 110900kg. By dividing the sales per month to the capacity of box, we can get the total number of the boxes that is needed in a month 240 boxes. The cost of the item is based on the quantity per kg. Hence, the table show the cost of different item per month :
NO ITEM QUANTITYREQUIRED
SAFETY STOCK
PRICE PERKG (RM)
SUPPLIER
1. FISH 900KG 650.00
2. CHICKEN 3500KG 1500.85
3. MEAT 6000KG 2350.50
4. LAMB
TOTAL
1600KG 2120.45
6621.80
8.5 Machine and equipment
We required our operatios to transfer the raw material from the lorry to our restaurant efficiently. The cost of this transport is RM15,000.
NO PARTICULAR QUANTITY SUPPLIER PRICEPERUNIT(RM)
TOTAL AMOUNT(RM)
1. Lorry 2 Hana Transport Sdn. Bhd.
15,000 30,000
8.6 : Location of operation
Kitchen 50,000Lorry 30,000
80,000.00WORKING CAPITAL/MONTHLY EXPENDITURELorry driver salary (2 person) 2,000Employee Salary (10 person inc chef, manager)
20,000
utilities 2,000Rent 5,500Electric and water bill 350
29,850.00OTHER EXPENDITURES-
TOTAL 109,850.00
9.1 Financial Strategy Analysis/Plan
Project implementation cost schedule
Steak N Grill Sdn Bhd fixed assets including shop lot, kitchen
equipment, furniture and fittings which cost a total of RM
60000. The restaurant’s working capital for three months of
administration, marketing and operation cost is RM 36000.
Other expenses such as business registration, insurance and
sundries together with the deposit costs RM 7100. Therefore
our total project implementation costs amount of RM 103100 as
shown in the table below. We might also add a contingency cost
(10 percent) to manage any variances that might occur between
the actual expenditure from the budgeted expenditure.
Table 9.1: Project Implementation Cost Schedule
STEAK N GRILL SDN BHD
PROJECT IMPLEMENTATION COST
REQUIREMENTS
COST
RM RM
FIXED ASSETS
SHOPLOT 23000
EQUIMENTS 15000
FURNITURES 10000
FITTINGS 2000
SUBTOTAL 60000
WORKING CAPITAL
ADMINISRATION 3000
UTILITIES 1000
SUBTOTAL 4000
MARKETING
PROMOTIONAL COST 12000
SUBTOTAL 12000
OPERATIONS
OVERHEAD COST 20000
SUBTOTAL 20000
OTHER EXPENDITURES
PRE-OPERATING
BUSINESS REGISTRATION 100
SUBTOTAL 100
DEPOSITS
UTILITIES/ PHONE/ WATER/ ELECTRICITY
2000
RENTAL 5000
SUBTOTAL 7000
TOTAL 103100
CONTIGENGIES (10%) 10310
GRAND TOTAL: RM 113410
9.2 Sources of Finance
The breakdowns of financial sources are shown in table below.
The financing sources required will be obtained from our own
capital amounting to RM 200,000.00 whereas the balance of RM
300,000.00 will be obtained through financing from Maybank.
STEAK N GRILL SDN BHD
SCHEDULE OF FINANCING SOURCES AT YEAR 2013 SOURCES COST(RM)
A. EQUITY/
OWN CONTRIBUTION CASH 200,000.00
B. EXTERNAL SOURCES BANK LOAN 300,000.00
C. OTHERS 0 TOTAL 500,000.00
9.3 Fixed Assets Depreciation/Schedule
The depreciation schedules of Steak N Grill Sdn Bhd fixed
assets are shown in table below.
STEAK N GRILL SDN BHD
DEPRECIATION SCHEDULEFIXED ASSET KITCHEN
EQUIMENTS
ORIGINAL COST
OF ASSET
15000 (RM)
METHOD STRAIGHT LINE
METHOD
ECONOMIC LIFE 10 YEARS
YEAR ANNUAL
DEPRECIATION
ACCUMULATED
DEPRECIATION
BOOK
VALUE0 - - 150001 1500 1500 135002 1500 3000 120003 1500 4500 105004 1500 6000 9000
5 1500 7500 75006 1500 9000 60007 1500 10500 45008 1500 12000 30009 1500 13500 150010 1500 15000 0
ANNUAL DEPRECIATION : ORIGINAL COST OF ASSET/ ECONOMIC LIFE
: RM 20000/ 10
YEARS
: RM 2000
STEAK N GRILL SDN BHD
DEPRECIATION SCHEDULEFIXED ASSET FURNITURES AND
FITTINGS
ORIGINAL COST
OF ASSET
15000 (RM)
METHOD STRAIGHT LINE
METHOD
ECONOMIC LIFE 10 YEARS
YEAR ANNUAL
DEPRECIATION
ACCUMULATED
DEPRECIATION
BOOK
VALUE0 - - 120001 2400 2400 9600
2 2400 4800 72003 2400 7200 48004 2400 9600 24005 2400 12000 0
ANNUAL DEPRECIATION : ORIGINAL COST OF ASSET/ ECONOMIC
: RM 12000/ 5 YEARS
: RM 240
9.4 Loan Amortization Schedule
Table below shows the loan amortization schedule of Steak N
Grill Sdn Bhd.
STEAK N GRILL SDN BHD
LOAN AMORTIZATION REPAYMENT SCHEDULE
LOAN AMOUNT 300,000.00
(RM)
INTEREST RATE 10 PERCENT
LOAN PERIOD 5 YEARS METHOD REDUCING
BALANCEYEAR PRINCIPAL INTEREST TOTAL
PAYMENT
PRINCIPAL
BALANCE0 - - 300,000.001 60,000.00 2,000.00 62,000.00 240,000.002 60,000.00 1,900.00 61,900.00 180,000.003 60,000.00 1,800.00 61,800.00 120,000.004 60,000.00 1,700.00 61,700.00 60,000.005 60,000.00 1,600.00 61,600.00 0
PRINCIPAL: LOAN AMOUNT/ LOAN PERIOD
: RM 300,000.00/ 5 YEARS
: RM 60,000.00
INTEREST: LOAN AMOUNT × INTEREST
: RM 300,000.00 × 10%
: RM 30,000.00
9.5 PRO FORMA CASH FLOW STATEMENT
Table below shows the pro forma cash flow statement of Steak N
Grill Sdn Bhd throughout the planned period.
STEAK N GRILL SDN BHD
PRO FORMA CASH FLOW STATEMENTMONTH 1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
TOTAL YEAR 2 YEAR 3
CASH INFLOWSOWNER’S
CAPITAL (CASH)
200,00
0BANK
LOAN
300,00
0CASH SALES 240,00
0.
350,00
0
400,00
0COLLECTION
OF ACCOUNTS
RECEIVABLETOTAL
CASH
INFLOWSCASH PAYMENTSCAPITAL
EXPENSESEQUIPMENT 30,000
.00FURNITURES
AND FITTINGS
70,000
.00ADMINISTRATIVE
EXPENSESSALARIES 80000 80000 80000EPF AND SOCSO 15000 15000 15000ADMIN
OVERHEAD
6000 6000 6000
RENTAL 60000 60000 60000MARKETING
EXPENSESPROMOTION 12000OPERATIONAL
EXPENSESRAW MATERIAL 80000 100000 120000DIRECT
LABOUR
30000 30000 30000
OPERATIONAL
OVERHEAD
6000 6000 6000
FINANCIAL
EXPENSESPRINCIPAL 50000 50000 50000INTEREST LOAN
REPAYMENT
8000
OTHER
EXPENSESDEPOSIT 6000TOTAL CASH
OUTFLOWS
308000 347000 367000
EXCESS/
(DEFICIT)
82000 3000 33000
OPENING 0 82000 85000
BALANCECLOSING
BALANCE
82000 85000 118000
9.6 PRO FORMA INCOME STATEMENT
Table below shows the income statement of Steak N Grill Sdn
Bhd.
STEAK N GRILL SDN BHD
PRO FORMA INCOME STATEMENT RM RM
SALES 240,000LESS: COST OF SALES
( GOODS SOLD)OPENING
STOCK : RM0PURCHASES
: RM 100,000GOODS AVAILABLE FOR
SALES : RM 100,000LESS : CLOSING STOCK
: RM
15,000(85,000)
GROSS PROFIT 155,000LESS EXPENDITURE/
OPERATING EXPENSESADMINISTRATIVE
EXPENSES
120,000
KITCHEN
EQUIPMENTSFURNITURES AND
FITTINGSMARKETING
EXPENSES
120,00
PROMOTIONBUSINESS CARDBANNERPOSTEROPERATIONAL
EXPENDITURE
122,000
FINANCIAL
EXPENDITUREINTEREST ON
BANK LOAN
30,000
DEPRECIATION ON
FIXED ASSET
11,000
OTHER
EXPENDITUREMISCALLANEOUS 1,000
TOTAL EXPENITURE/
OPERATING EXPENSES
154,000
NET PROFIT/ LOSS 1,000
BEFORE TAXTAXNET PROFIT/ LOSS
AFTER TAXACCUMULATED NET
PROFIT/ LOSS
9.7 PRO FORMA BALANCE SHEET STATEMENT
Table below shows the pro forma balance sheet statement of
Steak N Grill Sdn Bhd.
RM RMASSETSFIXED ASSET
(NON CURRENT
ASSET)FURNITURE AND
FITTINGS
70,000
KITCHEN EQUIPMENT 12,00082,000
CURRENT ASSETSSTOCK OF
FINISHED GOODS
150,000
ACCOUNTS
RECEIVABLECASH BALANCE 82,000BANK
150,000
OTHER ASSETSDEPOSIT 60,000
60,000TOTAL ASSETS 130000OWNERS EQUITYCAPITAL 200,000ACCUMULATED
PROFIT
1000
151000NON CURRENT
LIABILITIESBANK LOAN 300,000CURRENT LIABILITIESACCOUNTS PAYABLEREVENUE (121000)TOTAL EQUITY AND
LIABILITIES
130000
\
Table below shows the pro forma balance sheet statement for
Steak N Grill to show the company’s position for its assets,
liabilities and owner’s equity at the end of financial year.
STEAK N GRILL SDN
BHD
PRO FORMA BALANCE SHEET STATEMENT FOR THE YEAR
END 31 DECEMBER 2014
RM
RMASSETS EQUITY AND
LIABILITIESNON CURRENT
ASSETS
OWNERS EQUITY
FURNITURES AND
FITTINGS
12000 CAPITAL 150000
KITCHEN
EQUIPMENTS
15000 ACCUMULATED
PROFIT
1000
CURRENT ASSETS NON CURRENT
LIABILITIESSTOCK OF
FINISHED GOODS
15000 BANK LOAN 100000
ACCOUNTS
RECEIVABLE
CURRENT
LIABILITIESCASH BALANCE 82000 ACCOUNTS
PAYABLEBANK REVENUE (121000)OTHER ASSETSDEPOSIT 6000TOTAL ASSETS 130000 TOTAL EQUITY
AND
LIABILITIES
130000
10.0 Summary/Conclusion
As a summary, Stick N Grill Sdn.Bhd is a company that wants to
venture into food industry. This restaurant is solely unique
from others due to the variation of western cuisine.
Furthurmore, Stick N Grill Sdn.Bhd has increase its effort by
making the menu interesting that will attract many group of
customers. This approach is important in order to capture the
market attention.
In connection with that, we aim to serve western cuisine that
meets the needs and satisfaction of the customer. Stick N
Grill Sdn.Bhd will continuously use promotion and advertising
approach in order to gain consumers attention. Based on the
planning and projection, we are very confident that this
business venture will create a very satisfactory return on
investment from the third year of operation. For the first
year, we are estimating of sales and expenses minimal due to
the fact that the company has just started the operation.
The business will continuously implement strategy especially
on the marketing approach to ensure that the business is very
well known to the customers and we hope to build loyal
customer base in the third year of operation. We hope this
application of financing will be given due consideration from
Maybank Berhad for us to start business. We also hope our
business will increase national economy and bring much welfare
to the society.
11.0 Appendices
- Letters expressing interest to buy the product or services
- Questionnaires used to collect data as part of marketing
research
- Resumes of the key management team and key technical
advisors
- Promotional discount coupon or advertisements that describe
the product and service.