ENTREPRENEURIAL PROFILING: Alinah Karim Enterprise Technoprenuership: Alinah karim

Nama ahli kumpulan No matrik

Mirza Zuhair bin Zulkifli B061310246

Muhammad Huzair bin Hairudin B061310194

Shaiful Syahmi bin Sezeli B061310065

Mohamad Amirul Asraf bin Ismail B061310165

Mohamed Abdalla Mohamed B061310256

Low Yong Jie B061310092

Tee Tian Leng B061310092

Loke Wei Lam B061310124

Faculty: Faculty of Technopreneurship

Course: Technopreneur

Lecture’s Name: Pn. Mariam Miri bt Abdullah

Date of submission:

Table of ContentsEXECUTIVE SUMMARY...........................................................................................................................3

INTRODUCTION.....................................................................................................................................5

BUSINESS VISION...............................................................................................................................7

BUSINESS MISSION............................................................................................................................7

BUSINESS OBJECTIVES.......................................................................................................................7

ORGANIZATION BACKGROUND.............................................................................................................8

COMPANY DATA................................................................................................................................8

OWNER BACKGROUND......................................................................................................................9

ORGANIZATIONAL CHART..................................................................................................................9

MARKETING PLAN/ANALYSIS...............................................................................................................10

Target market..................................................................................................................................10

Market size......................................................................................................................................10

Competetior Anlysis........................................................................................................................11

Marketing Strategy..............................................................................................................................11

OPERATION PLAN................................................................................................................................13

PROCESS FLOW CHAT......................................................................................................................13

MATERIAL REQUIREMENTS.............................................................................................................14

MACHINE AND EQUIPMENT............................................................................................................15

OPERATION OVERHEADS.................................................................................................................16

OPERATION BUDGET.......................................................................................................................16

FINANCIAL PLAN..................................................................................................................................17

Important Assumptions.................................................................................................................17

Funding Used.......................................................................................................................................18

Break-even Analysis.........................................................................................................................18

CONCLUSION.......................................................................................................................................21

EXECUTIVE SUMMARY

Company Alinah Karim was establish at year 2003 and it became a well-know

company in Malacca nowadays. Company Alinah Karim promise will provide a combination

of excellent product and also services to the customer. The product by Company Alinah

Karim, Cili Boh Asli already became the famous product to all the Muslim because its cili

boh is one of the halal chili product available in the market. Thus, this is go with the same

direction with business mission of Alinah Karim Enterprises which to enhance the choice for

Muslims

In today society which full of competitor, an outstanding product or services supply

by the company play an important role in the development of the company. In the other

words, an unique product and strategy implement by the company will determined how far

can the company go. Besides that, the reasonable price of the product of Cili Boh also

increase the demand of consumer.

Here are some business plan for improve business of Alinah Karim Enterprises:

The cili boh not only attract Muslims came and get it but also some of the Chinese

and Indian. However, our main priority of the customer is muslims. So that, the market to

promote our product should be also a place which around muslims. Thus, it can be more

effective compare with promote our product in the Chinese market and Indian market. In

order to implement this idea, we suggest the market to promote the product should be held at

Jonker Street. Jonker Street is a famous tourist place in Malacca and it located at the center-

heart of Chinatown Malacca and it also crowded by tourist in the whole year as Malacca is a

strategic place as it could attract about 8 million tourist per year. Thus, we believe that

through this strategic, we can enhance our market which is not only sell to the local people

but also tourist. So that, we can expand the business of Alinah Karim internationally.

Besides that, we also need to redesign the package of the product. In this issue, we

need to redesign the bottle of the cili boh and also the label paper. With this, the unique

outlook of the product can easily attract all the customer came and take a look at it. In

addition, we also can create a quote for the cili boh. Here are the example of the quote: “

spicy deluxe”. Such unique quote will make the consumer easily to recognize the product.

Thus, the market will be increase because one man will share or transfer the knowledge or

message to the others man easily compare to the spend a lot of money on functionless

advertising.

On the other hand, we suggest Alinah Karim Enterprises also invent and develop

some new product instead of only depending on cili boh. This is because normally a product

will not last longer in the market. Thus, new product should be develop time by time so that

our company would not be eliminated from the market.

INTRODUCTIONWhat is retail business? Retail is the sale of goods and services from individuals

businesses to the end-user. So, retail business can be explain as a retailer purchases goods

or product in large quantities from manufactures and then sells small quantities to the

consumer for profit. Retailing not only can done at store or markets, but also can do it by

using door-to-door ways and even also by delivery. Although retails business already

operate in our country long time ago but there are no systematic way to manage and

improve it because most of the people only think that retail business only involved of

purchasing thing. Moreover, some owner also do not take care and considered about their

business process. Thus, after carry out some research based on long-term objective, this

company was expand its retail business successfully by their creativity.

Company named Alinah Karim Enterprise operate at year 2003 and it only operate its

retail business at the beginning only but expand its business with create a brand new chili

product which named Cili Boh Asli after its retails business reach into a steady state.

After so many years of expanding its business, company Alinah Karim Enterprise already

have enough knowledge and experience about the way to handle the issue that raised in

its business and how to manage the company. Thus, company Alinah Karim produce a

business profile which to let all the employee and also society understand the service that

available in the company. As a result, many company even other sectors also start to

catch up with Alinah Karim Enterprise and set the company as a role model.

The reasons why Alinah Karim Enterprise can achieve excellent result in this sector is

because of almost all of the employee of this company has at least five year experience in

the sector. Besides that, the strength of human resources of the company also strengthen

Alinah Karim Enterprise. Nowadays, Alinah Karim Enterprise already have another two

business after three year of company establish.

The first other business that establish was located at ditangga batu which the branches

is the place who carry out chili marketing and also chili manufacture place (Rumah Cili).

At the same time also, Company Alinah Karim make a decision which select an

Marketing Executive who take the responsibility to promote company product into the

market of Malacca. On this issue, we can pretend that Company Alinah Karim make a

good decision because through this selection, their product promote to whole the family

store in Malacca and also U-center sdn. Besides that, their product, Cili Boh Asli also

available at all the hyper market in the town such as Tesco, Giant and Aeon. Thus, this

excellent result achieved by the Alinah Karim Enterprise make the company decide to

expand its business to the other two branch which is pasar mini (tanjung minyak) and also

pasar segar (krubung) which to promote their company products. Thus, their Cili Boh

Asli became one of the famous product in the town.

After seven years Company Alinah Karim establish, the individual duty class was

finally set up at year 2013. This class was set up for free and open to all the woman only

because the vision of the head of Company Alinah Karim was implement the culture of

learning and servicing at the same time to the society. Besides that, it also teach and guide

the all the entrepreneur planning the related strategy in the beginning so that they won’t

failed in their related business.

In conclusion, due to the excellence performance achieved by Company Alinah Karim

Enterprise, the company already awarded as Anugerah Usahawan which held at Bukit

Jalil at this year.

BUSINESS VISIONVarious choices of natural chili paste will be provided to fulfill customers’ need with reasonable prices.

BUSINESS MISSIONTo make sure that Muslim consumers have more choices on buying natural chili paste which already been certified as halal. This can attract more Muslim consumers on buying this natural chili paste because they don’t have to worry that whether it is halal or non-halal. Other than that, this idea can also increase the percentage of Malay to be involved in this field by starting their own business.

BUSINESS OBJECTIVES Establish a Bumiputra entrepreneur organization which is dynamic to achieve the

quality & services standard. To foster the competitive spirit among the entrepreneur so that they will become an

entrepreneur that is trusted by everyone. To ensure the consumers get the best products. Expand the business market from time to time. Produces product that can fulfill customers’ need. To get high profit through the high market demand.

ORGANIZATION BACKGROUNDThe following are the details of Alinah Karim Entreprise which was registered

in accordance with the domestic business procedures that have been issued a

business license and a valid permit in accordance with the rules set.

COMPANY DATAName of Business : Alinah Karim Enterprise

Business Address : Batu 9½ Tangga Batu,

76400 Melaka

Email Address : alinah_ciliboh@yahoo.com

No. Tel : 019-6875726

Form of Business : Entreprise

Main Product/Activities : Cili Boh Asli (processing and marketing Cili Boh Asli)

Date of Commencement : 2003

Registration No. : MA0104906 - D

Business Bank : CIMB / MayBank / Bank Islam

OWNER BACKGROUNDName of Owner : Alinah Binti Mohd Karim

IC No : 670218-04-5336

Permanent Address : KM 10, C-6653,

Ayer Molek, 75460 Melaka

Email Address : alinah_ciliboh@yahoo.com

Tel No. : 019-6875726

Date of Birth : 18th February 1967

Marital Status : Single

Academic Qualification : SPM

Course Attended : -

Skill/Experience : well in English, Malay, Chinese language

Job’s Experience : A lot

ORGANIZATIONAL CHARTThe organizational chart for our company is quite simple given that it contains a few level of management . As the bussiness grows ,the levels of management and number of employees may be incresead

Alinah Binti Mohd Karim(Managing Director & Finance)

Process of Chili Boh

Khairul bin Jasman(Chili Production)

Najwa

Rashidah

Nurul

Ahmad

Sazali

Safwan

Salmah

Farah binti Yakob (Marketing executive)

Abu Bakar (Assistant executive)

Marketing Chili

Asyikin

Delivery

Izzat

Shahmi

Zarul

MARKETING PLAN/ANALYSIS

marketing is the process of developing and implementing a plan to identify, anticipate and satisfy consumer demand, in such a way to make profit. Alinah Karim Enterprise is involved in the food industry. We believe that our country’s economy which is expanding positively plays its part in the development of Alinah Karim Enterprise. Our company able to take advantage of this development by offering best service to customer. By coming out with high friendly service and relationship , we are sure that our business will be able to compete with other competitors in the Malacca area.

TARGET MARKETThe target market of Alinah Karim Enterprice is compise of the community in Melaka, the residents of the housing area in Batu Beremdam, Tanjung Kling, Kerubong and so on. The number of population in the age of seven years old to above who live around the area.

MARKET SIZEThe market size should be more then 600,000 people from the areas below with a rough estimation of RM5.50 per packet. This will give a rough monthly of RM 3,300,000

Areas that we serve:

Batu Beremdam

Tanjung Kling

Kerubong

COMPETITOR ANALYSIS

It very important for Alinah Karim enterprice because the analysis to define our strength and weakness of the company. The Alinah Karim enterprice has a high and Stronger technology, it has been from the Japanese bring Whose use this technology and that's cans be Able for the company to reduce more products with less duration of time in the market the coop as it featuring a very competitively priced in terms of selling. But our brand products are still not common knowledge. Products Alinah karim enterprice still not marketed in the country. therefore, the user does not know about the brand Alinah Karim enterprice. The main competitor is cili’s and Jalen brands but it will be healthy competition. Alinah karim enterprise have oppurtunity to expanding business throughout Malaysia with high technology and is capable of producing its own products to markets around the country.

MARKETING STRATEGYThe focus will be done on satisfying customer ‘s needs in an effort to increase company

revenue and profits through 4Ps of marketing to influence customers decisions and make

purchases on our company products and services .Marketing campaign will be done through

automated marketing technology .

1. Product

Quality – It is our main priority in order to achieve customer satisfaction our Alinah

Karim have been good quality food products which are nice new, and specified to the

local taste of all Malaysian .Our food products quality had been approved Halal

License from the government which proved that our food products are readily

consuming by all the Malaysian.

2. Price

Our prices are reasonable and affordable by all categories of Malaysian. price will be

compare with our competitors and customer get special price when they buy more

than 50 packet above.

3. Place

Located at, Batu 9½ Tangga Batu 76400 Malacca .It is a strategic place because it

known as world heritage and full of tourisms. The location is the most relevant to

place our company products due to its connectivity and accessibility to all the

facilities and infrastructure.

4. Promotion

Aggressive promotions will be carried out to attract customers in buying our products,

which are:

a. Advertising

Printed media such as newspapers and magazines Media broadcast like the radios

Internet

Advertisement through ads from any food and beverage websites to promote our

company product. Internet will be done through banner and interstitial

Outdoor advertisements such as billboards and banners.

b. Public relations and publicity

Giving the best quality of products and creates good relationship with the customers.

OPERATION PLANOperational planning will defines as what the managers will deliver in the year ahead, how they'll produce it, and what resources they will need to do so. It includes a business forecast, budget and resource requirements, and rates. Strategy is important, but operational (tactical) planning is a foundation. Without effective operational planning, execution of strategy (or just keeping the business running) is extremely difficult. World-class organizations adopt a disciplined approach to operational planning. They document a step-by-step method that engages all their managers in planning their respective businesses.

Process Flow Chart

1Start

2Material Delivery from Supplier

3Quantity Control Inspection of Materials

4Determine The Amount Require

5Manufacturing Chili Products

6Quality Test

7Delivered To Store

8Supply to Market

MATERIAL REQUIREMENTSRaw Material/Equipment

Quantity Required(kg/L)

Safety Stock Price per kg/L (RM)

Total Purchase (RM)

Supplier

Dried chilli 6500kg 50 1.80 11700 Sheng Leong mini market

Salt 320kg 15 1.00 320 Spicon Product Pte Ltd

Olive oil 300L 15 30.00 9000 Lam Soon Singapore Pte Ltd

Materials Requirement Planning (MRP) is a scheduling procedure for production processes that

have several levels of production. Given information describing the material requirement

determines a schedule for the operations and raw material purchases. MRP can be applied both

to items that are purchased from outside suppliers and to sub-assemblies.

MACHINE AND EQUIPMENTItem Quantity Price/per Unit Total Cost Supplier

Office Furniture

1 set 1000 1000 Novenas Interior Design&construction Pte Ltd

Table/Chair 5 sets 500 2500 Novenas Interior Design&construction Pte Ltd

Personal Computer

2 sets 1000 2000 5 Star Pusat Komputer

Office/Shop Renovation

- - 4,500 Novenas Interior Design&construction Pte Ltd

OPERATION OVERHEADS

In business, overhead or overhead expense refers to an ongoing expense of operating a business (also known as Operating Expenses - rent, gas/electricity, wages etc.). The term overhead is usually used to group expenses that are necessary to the continued functioning of the business but cannot be immediately associated with the products/services being offered (e.g., do not directly generate profits). Closely related accounting concepts are fixed costs versus variable costs and indirect costs versus direct costs. Overhead expenses are all costs on the income statement except for direct labor, direct materials & direct expenses. Overhead expenses include accounting fees, advertising, depreciation, insurance, interest, legal fees, rent, repairs, supplies, taxes, telephone bills, travel and utilities costs.

Item Cost Permonth RM

Electric 300

Telephone 150

Water 300

OPERATION BUDGETItem Fixed Asset Monthly Expenses Other Expenses

Machine 55000

Wages 9360

In preparing the operation budget, a business must consider assets cost, monthly expenses. The fixed assets cost under the operation section includes the cost of the building or buying the operation space (eg. shop) and any relevant renovation work.

FINANCIAL PLANFinancial Planning is the process of estimating the capital required and determining its

competition. It is the process of framing financial policies in relation to procurement,

investment and administration of funds of an enterprise. Our company want to finance the

growth of our company from the operating income after start-up phase. However, it’s still

need funding about RM70, 000 to secure the property, inventory and equipment. The

following section will describe how our company, Alinah Karim Enterprise, manage our

finance in over 3 years to success.

The following section of this plan will describe the financial plan in more detail:

Important Assumptions

Funding Used

Break-even Analysis

Projected Profit and Loss

Projected Cash Flow

Projected Balance Sheet

Business Ratios

Long-term Plan

Important Assumptions We are assuming steady growth from good management, barring any unforeseen local

or national disasters such as the economic slowdown seen by most of the country.

We also assume that the depreciation of asset will maintain at 10% of the asset per

year.

Funding Used

20%

20%40%

20%Funding used

Promotion

equipment and vehicles

Development & Expansion

Emergency used

We are here to funding about RM70, 000, and most of our funding is use to development and

expansion. To strong and stable our business, development are very important to develop

more management strategy and more favour of our food. Also, once we stable up, we need

expansion our business. Our business are still new and less people know about us, so about

20% of funding, we will take it to use as promotion, give people try our chili paste, and

important is let people know our business name and so build up our image. A same amount of

funding 20% also will use to as equipment and vehicles, we are still need some equipment to

reduce our cost and energy to doing our business.

Also, A 20% of funding will put it as emergency used, this is because if all of our cash take

into business, then if happen emergency matter, we are unable to turnover it, this is reason

why we put it as emergency used.

Break-even Analysis

An analysis to determine the point at which revenue received equals the costs associated with

receiving the revenue. Break-even analysis used to calculates what is the volume or revenues

as a margin of safety, the amount that revenues exceed the break-even point. This is the

amount that revenues can fall while still staying above the break-even point.

Variable Cost (Yearly) RM

Raw Material 40,000

Total Variable Cost 40,000

Fix Cost (Yearly) RM

Payroll 48,000

Installment fee 20,000

Maintenance fee 1000

License fee 120

Depreciation 5500

Total Fix Cost 74,620

Selling Price: RM5.50

Quantity: 19,200unit

Break-even Point (Quantity) Break-even Price (RM)

¿ TFC

SP−TVC

QUANTITY

¿ RM 74,620

RM 5.50−RM 40,000

19,200

¿21,840Uni t

= 21840 unit

¿ TFCSALES−VARIALECOST

SALES

¿ RM 74,620(RM 5.50×19200unit )−RM 40,000

RM 5.50×19200unit

= RM120,120

Projected Profit and Loss

Alinah Karim EnterpriseProjected Profit and Loss in coming 3 years

Pro Forma profit and loss Year 1 Year 2 Year 3

SalesCost of Sales

RM145,18151,440

RM164,217.20

58,130

RM198,482.40

73,272

Gross Margin 93,741 106,087.20 125,210.40Gross Margin (%) 64.57% 64.60% 65.05%

Expenses:PayrollDepreciationLicense feeMaintenance feeInstallment feePetrolBonusPromotion

48,0005500120

100020,000

50002000800

50,4005500120

100020,000

50003000800

54,0005500120

100020,000

500040001000

Total Expenses 82,420 85,820 90,620

Net Profit 11,321 20,267.20 34,590,40

Net Profit (%) 7.79% 12.34% 17.42%

Chart: Profit (Yearly)

Year 1 Year 2 Year 30

5000

10000

15000

20000

25000

30000

35000

40000

Profit Yearly (RM)

Profit Yearly (RM)

Chart: Gross Margin (Yearly)

Year 1 Year 2 Year 30

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Gross Margin (Yearly)

Gross Margin (Yearly)

Projected Cash FlowAlinah Karim Enterprise

Projection Cash Flow Statement in coming 3 years

Yearly Year 1 Year 2 Year 3RM RM RM

Cash Inflow:Equity-Cash 18,000 0 0Cash Sales 145,181 164,217.20 198,482.40

Total Cash Inflow 163,181 164,217.20 198,482.40

Cash Outflow:Operation Expenditure:

Raw materials 44,664.58 49,412.90 57,325.70Petrol fee 5000 5000 5000License fee 120 120 120

Marketing Expenditure:Promotion 800 800 1000

Hire Purchase Expenditure:

Down payment 10,500 0 0

Installment fees 20,000 20,000 20,000

Capital Expenditure:Machinery & Equipment 8500 0 0

Renovation fee 4,500 0 0

Maintenance fee 1000 1000 1000

Administrative Expenditure:

Salaries 48,000 50,400 54,000

Bonus 2000 3000 4000

Promotion 800 800 1000

Total Cash Outflow 145,884.58 130,532.90 143,445.70

Cash Surplus (Deficit) 17,296.42 33,684.30 55,036.70

Beginning Cash Balance

CONCLUSIONA business plan is not just a lengthy document that helps obtain financing. It is truly a

thorough examination of whether the business idea is viable. Preparing business plan in the

early stages of developing business can save a great deal of time, money and heartache by

showing where the weaknesses in idea lie and giving a chance to correct them before make

any serious mistakes.

For example, in the process of putting together business plan, Alinah Karim

Enterprise might discover that they haven't really thought enough about their marketing

budget or they haven't done enough research on government regulations that will affect their

business. In putting together the plan, Alinah Karim Enterprise forced to examine their

business from the viewpoint of the skeptical potential investor and the skeptical potential

consumer, not just from the perspective of the enthusiastic entrepreneur. 

Once completed the initial plan and obtained the investment or loan they were

seeking, the business plan had been a living document. Then, Alinah Karim Enterprise hadt

to revisit their plan from time to time, dropping some components and adding others as learn

what works for the business and what doesn't. As the business evolves,they will find that

older versions of the plan provide a helpful reminder of how far the company have come. As

a bonus, continually updating the plan will put Alinah Karim Enterprise ahead of the game if

later they need to secure additional financing.

Business will continue to implement business strategies, especially in term of

marketing to make sure that the business is well-known to customers and build a customer

base where vision and mission to produce various choices of natural chili to fulfill customers’

need with reasonable prices besides to achieve sales target and high returns on capital and

continue business further.