Entrepeneurship Business Report 2 (SPA) (diploma study)

INTRODUCTION

Our business’s name is SPA ‘S’. We get this name from all partnerships’ name

begin from consonant S. Spa ‘S’ is a Bumiputera’s Company and categorized as

hospitality industry. This spa provides services of body massage, hair styling, facial and

skin treatment, full body treatment, make up application, manicure and pedicure. It is

located at No1, Lorong Perda Barat 1, Bandar Perda, 14500 Bukit Mertajam, Pulau

Pinang.

Our business partnership is from of business study. There are five partners in our

company. They are Shazana Asmaizzati Bt Shata as General Manager, Siti Harishah Bt

Azman as Administration, Siti Nurul Farah Bte Abdol Majid as Operation Manager,

Nurul Shafiza Bt Mohd Shahrudin As Financial Manager and Sabratun S’adiah Bt

Zulkafli As Marketing Manager. An agreement has been signed up by all five partners.

Date of commencement has been fixed which is on January 2009.

This business has its own potential to expand in business industry, because there are only

3 spas in Bandar Perda and have strong base to stand in hospitality industry. There are

several factors of choosing service of spa as the element of business:

The high demand from women nowadays that importance of Health and Beauty

No competitive at high demand area.

Demand from public users at this area like students that provide service of spa

that affordable to them.

Has sufficient expert in the related field.

In the future, we plan to expand our business into several branches. Our target period

would be 7 to 10 years. We also try to achieve the world-class quality of giving

satisfaction spa services. For long-term period, we would like to become Malaysia’s

number one spa service.

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1.1 PURPOSE OF BUSINESS PLAN

Meanwhile, partnership would like to contribute an amount of RM 100,000

which is specifically divided based on their individual percentage like has been agreed in

the partner’s agreement.

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1.21.2 BUSINESS BACKGROUNDBUSINESS BACKGROUND

Name of Company : SPA ‘S’

Office Address : Spa ‘S’,

No 1, Lorong Perda Barat 1,

Bandar Perda,

14500, Bukit Mertajam ,

Pulau Pinang.

Correspondence Address : Spa ‘S’,


Bandar Perda,

14500, Bukit Mertajam ,

Pulau Pinang.

Partners : a) Shazana Asmaizzati Bt Shata

b) Siti Harishah Bt Azman

c) Siti Nurul Farah Bt Abdol Majid

d) Nurul Shafiza Bte Mohd Shahrudin

e) Sabratun S’adiah Bt Zulkafli

Website Address : http://www.spas.com.my

Email Address : [email protected]

Tel. Number : 04-3138697

Fax. Number : 04-3138698

Main Activity : Full body treatment

Date of Commencement of Business : July 2009

Date of Business Registration : 1st Dec 2008 :

Status of Ownership : Bumiputera

Motto : Health and Beauty

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http://www.spas.com.my/

Mission, vision and objectives of company

Mission

Spa ‘S’ mission are to be one of the spa that provide good service to our

customer and can be the most popular spa in Malaysia.

Vision

Our vision is to success in gaining as many profits as our company can and to

have competitive that can easily put out our competitor.

Objectives

In term of that, our business is still new in Malaysia, so we define our short term plan

indeed to achieve our goals. To introduce our spa to the citizens in the northern region is

our core objective. This will make our management to work hard, so that the goals that

we set can be achieve in time.

The company’s motto

Company’s motto: ‘Healthy and beauty ’

All the partnerships have agreed to use this motto as our company’s motto.

Healthy and beauty are the need and important to all people especially women. All

women especially teenagers and mid ages need the spa treatment to face the challengers’

world. These services will help women more relax and confidently to face the modern

world.

We prefer to place our motto on a signboard together with the company’s logo.

The combination of motto and logo will provide more efficiently for the public.

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The company’ s l ogo

Meaning:

Crown - power of services

Pink colors - women

White colors - purity

Lady - modern women of today

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1 .3 BACKGROUND OF PARTNERS

Name : Shazana Asmaizzati binti Shata

Position : General Manager

I/c Number : 790729-03-5098

Date of Birth : 29 July 1979

Age : 30

Sex : Female

Permanent Address : Kg, Kubang Bongor, 16400 Melor, Kota

Bharu, Kelantan, Malaysia.

Correspondence : No1 Lorong Perda Barat 1, Banda Perda,

14500 Bukit Mertajam, Pulau Pinang

Telephone number : 04 - 3138697 (office)

017 – 5623316 (handphone)

Marital Status : Married

Race : Malay

Religion : Islam

Qualification : 1) Master in Business Study University of

Newcastle, Australia

2) Dip. In Accountancy BBA (hons)

(Business management)

3) Certificate of massage and make up skill from IKBN

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Course Attended : 1) Human Resources Management Seminar.

2) Entrepreneur Medec Seminar

3) Leadership seminar

Skill : 1) Computer literature

2) Office management

3) Fluency in English and France

Experience : 1) Involved in family businesses.

2) 3 years experience as Human Resources Executive

Current Job : Management Resources Executive

Business Experience : Run a family businesses

Email : [email protected]

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Name : Siti Harishah bte Azman

Position : Administration Manager

I/c Number : 820908-04-5486

Date of Birth : 8 September 1982

Age : 27

Sex : Female

Permanent Address : No 627-1 Batu 7 ½, Pengkalan Perigi, 76400 Tanjung

Keling, Melaka



Telephone Number : 04 - 3138697 (office)

012 – 2408221 (handphone)

Marital Status : Single

Race : Malay

Religion : Islam

Qualification : 1) Diploma in Accountancy

2) Bachelor in Business Study


Course Attended : 1) Human Resources Management Seminar.

2) Entrepreneur Medec Seminar


2) Fluency in English and Mandarin

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Experience : 1) Involved in family business.

2) 3 year experience as Administration Manager.

Current Job : Administration Manager in Celcom (M) Sdn. Bhd.

Business Experience : None


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Name : Siti Nurul Farah bte Abdol Majid

Position : Operation Manager

I/c Number : 821028-04-5052

Date of Birth : 28 October 1982

Age : 27

Sex : Female

Permanent Address : No4 Lorong 1, Jalan BKI 10, Taman Bukit

Katil Indah, 75460 Bukit Katil, Melaka




012 –9164247(handphone)

Marital status : Single

Race : Malay

Religion : Islam

Qualification : 1) Diploma in Business Study

2) B.A in Marketing UUM


Course Attended : 1) Operation department conference

2) Entrepreneur medec seminar

3) Computer literature

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Skill : 1) Fluency in English and mandarin

2) Pub l i c s e rv i ce

Experience : 1) Marketing manager in Fama.

2) 2 year experience as bank manager

Current Job : Operation Executive



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Name : Nurul Shafiza bte Mohd Shahrudin

Position : Financial Manager

I/c Number : 820106-23-5130

Date of Birth : 6 January 1982

Age : 27

Sex : Female

Permanent Address : No 52, Kg Banngol, 22100 Setiu, Terengganu


14500 Bukit Mertajam , Pulau Pinang


012 - 3435075 (handpone)

Marital status : Married

Race : Malay

Religion : Islam

Qualification : 1) Diploma in Accountancy

2) Bachelor in Accountancy


Course Attended : 1) Finance seminar.

2) Organization management seminar

3) Course of Microsoft office at Terengganu


2) Fluency in English and Mandarin

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3) Good in account subject

Experience : 2 years experience as accountant

Current Job : Financial Manager

Business Experience : Run a family business


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Name : Sabratun S’adiah bte Zulkafli

Position : Marketing Manager

I/c Number : 820812-14-5896

Date of Birth : 12 August 1982

Age : 27

Sex : Female

Permanent address : No.6, Jalan AU 1A /2C, Taman Keramat, 54200 Kuala

Lumpur



Telephone number : 04 - 3138697(office)

012 – 3274985(handphone)

Marital status : Single

Race : Malay

Religion : Islam

Qualification : 1) BA (hons) Business Management,

University of Adelaide Australia


Course Attended : 1) Marketing department conference

2) Entrepreneur medec seminar


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2) Fluency in English and mandarin

Experience : 1) Marketing manager in Fama.

2) 3year experience as Bank Manager

Current Job : Marketing Officer



1.4 PARTNERSHIP AGREEMENT

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Signature of the witness,Signature of the witness, Signature of the share holder, Signature of the share holder,

………………………… ……………………………..………………………… ……………………………..

A.SUBRAMANIAM, SHAZANA ASMAIZZATI

BT SHATA

Qualify Federation Lawyer (790729-03-5098)

P.H.D / MASTERS in law,

Harvard University Signature of the share holder,

USA ……………………………...

SITI HARISHAH AZMAN

(820908-04-5486)

Signature of the share holder,

……………………………...

SITI NURUL FARAH

ABDOL MAJID

(821028-04-5052)


……………………………...

NURUL SHAFIZA MOHD SHAHRUDIN

(820106-23-5130)


……………………………...

SABRATUN S’ADIAH ZULKAFLI

(820812-14-5896)

ADMINISTRATION PLAN

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2.1 ORGANIZATION CHART

2.2 LIST OF ADMINISTRATIVE PERSONNEL

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GENERAL MANAGER

SHAZANA ASMAIZZATI BTE

SHATA

MARKETING MANAGER

SABRATUN S’ADIAH BTE

ZULKAFLI

FINANCIAL MANAGER

NURUL SHAFIZA BTE

MOHD SHAHRUDIN

OPERATION MANAGER

SITI NURUL FARAH BTE

ABDOL MAJID

ADMINISTRATION MANAGER

SITI HARISHAH

BTE AZMAN

CLERK(Receptionist)

Position No. of workers Qualification Resources

General Manager 1 Masters Partner

Administration Manager 1 Degree Partner

Marketing Manager 1 Degree Partner

Operation Manager 1 Degree Partner

Financial Manager 1 Degree Partner

Total 5

2.3 SCHEDULE OF TASK AND RESPONSIBILITIES

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POSITION TASK AND RESPONSIBILITIES

GENERAL MANAGER o In change as a leader in

all activities in the company.

o Give instruction to all

workers.

o Receive reports from

all managers about the company

operation.

o Monitor the

development of the company in the

market

o Responsible to the

worker’s achievement and solve

employee’s problem and difficulties

o Prepare all

documentation of the company

ADMINISTRATION MANAGER o Administration and manager

organization matter to achieve

organization goal.

o Investigates and examine procedure

o Make recommendations for

improvements

o Managing the working schedule,

evaluating and preparing the staff

performing.

MARKETING MANAGER o Responsible in find the new chance of

the new market.

o Maintain the profitability and meet

collection target.

o Responsible in introduction the

business to the public and private.

o

OPERATIONAL MANAGER o Giving good service to customer

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o Responsible to all the operational

activities in the business

o Ensure that customer will satisfy with

the business agenda

o Planning the overall operation and

future expansion of business

FINANCIAL MANAGER o Manage credit control and evaluation

o Manage the document flow between

internal process owner and external

partner.

o Develop the business account, policies,

procedure and auditing, budgeting and

financial matter

o Fully authorities in financial

department

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2.4 SCHEDULE OF REMUNERATION

POSITION NO MONTHLY

SALARY (RM)

11% EPF

(RM)

2% SOCSO

(RM)

GENERAL

MANAGER

1 3800 418

ADMINISTRATION

MANAGER

1 3200 352

OPERATION

MANAGER

1 2500 275

FINANCIAL

MANAGER

1 2500 275

MARKETING

MANAGER

1 2500 275

CLERK 1 800 88 16

TOTAL 15300 1683 16

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2.5 LIST OF OFFICE EQUIPMENT AND SUPPLIER

LAYOUT OFFICE

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2.6 ADMINISTRATION BUDGET

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FURNITURE &

FITTING

UNIT PRICE/UNIT

(RM)

TOTAL

(RM)

MANAGER TABLE 5 300 1500

MEETING TABLE 1 500 500

MANAGER CHAIR 6 100 600

COUNTER TABLE 1 400 400

CHAIR 7 50 350

CABINET FILE 6 100 600

SOFA 1 1000 1000

TELEVISION

CABINET

1 250 250

TOILET

EQUIPMENT SET

1 500 500

SINK 2 50 100

DECORATION

PLANT

11 10 110

RACK 1 50 50

TOTAL 43 5960

BUDGET OF MECHINE AND EQUIPMENTS

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EQUIPMENTS UNIT PRICE/UNIT

(RM)

TOTAL

(RM)

AIR-CONDITIONER 7 800 5600

COMPUTER 6 1750 10500

FAX-MACHINE 1 430 430

FIRE

EXTINGUISHED

2 250 500

FIRST AID KIT 1 50 50

TELEPHONE 6 20 120

CUPBOARD 1 200 200

FAN 1 50 50

TOTAL 17450

PRELIMANARY EXPENSES

ITEMS COST

(RM)

BUSINESS AGREEMENT 150

STAMP DUTY 50

LAW FEES 600

TOTAL 800

BUDGET OF REMUNIRATION

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POSITION NO MONTHLY

SALARY (RM)

11% EPF

(RM)

2% SOCSO

(RM)

GENERAL

MANAGER

1 3800 418

ADMINISTRATION

MANAGER

1 3200 352

OPERATION

MANAGER

1 2500 275

FINANCIAL

MANAGER

1 2500 275

MARKETING

MANAGER

1 2500 275

CLERK 1 800 88 16

TOTAL 15300 1683 16

ADMINISTRATIVE BUDGET

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ITEM ASSET

EXPENSES

(RM)

MONTHLY

EXPENSES

(RM)

OTHER

EXPENSES

(RM)

FURNITURE &

FITTING

5960

EQUIPMENTS 17450

RENT OF

PREMISES

2800

ELECTRICITY 600

WATER 50

TELEPHONE 300

SALARY 15300

EPF 1683

SOCSO 16

DEPOSIT ON

PREMIS

4000

DEPOSIT ON

ELECRICITY

250

DEPOSIT ON

WATER

150

DEPOSIT ON

TELEPHONE

200

PRELIMINARY

EXPENSES

800

STATIONARY 100

RENOVATION 6000

TOTAL 23410 20749 11500

C o n t r i b u t i o n o f E q u i t y

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N a m e P o s t i n c o m p a n yP e r c e n t a g e

( % )

R e a l v a l u e

( R M )

S h a z a n a A s m a i z z a t i b t

S h a t a

3 0 % 3 0 , 0 0 0 G e n e r a l m a n a g e r

S i t i H a r i s h a h b t A z m a n 2 0 % 2 0 , 0 0 0 A d m i n i s t r a t i o n

m a n a g e r

S i t i N u r u l F a r a h b t A b d o l

M a j i d 2 0 % 2 0 , 0 0 0 O p e r a t i o n m a n a g e r

N u r u l S h a f i z a B t e M o h d

S h a h r u d i n 2 0 % 2 0 , 0 0 0 F i n a n c i a l m a n a g e r

S a b r a t u n S ’ a d i a h b t

Z u l k a f l i

1 0 % 1 0 , 0 0 0 M a r k e t i n g m a n a g e r

T O T A L A M O U N T 1 0 0 % 1 0 0 , 0 0 0 -

MARKETING PLAN

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3 . 1 PROFILE OF SERVICE

Marketing is important criteria in business. According to Oxford-advanced

learner’s dictionary, marketing plan can be defined as the theory and practice of

presenting, advertising and selling thing. Marketing plan is also referred to written

document that acts as a guidebook of marketing activities for the marketing manager. It

designed all the activities relating to the marketing objectives and the changing of

marketing environment. A good management had to be concern and make sure that all

plan runs smoothly and achieves its target and goals. It plays an important role to every

business in order to make sure all of the business marketing is properly arranged.

Marketing also can be define as process of planning and executing the

conception, pricing, promotion and distribution ideas, goods, and services to create

exchanges that satisfy individual and organization objectivities. The concept of marketing

is toward satisfying customer needs and wants as well as contributing towards profit for

the business.

The existence of Spa is because of some reason. We select this business because:

i. We interested in this type of business because we have highly knowledge in

this field.

ii. To fulfill the needs and wants of consumer.

iii. We could see that this business has potential to make high profits.

iv. To get a monopoly in this business because there are lack of bumiputera’s

entrepreneur in this field

3.2 TARGET MARKET

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Basically targets market refers to a group of customers or buyer with similar traits that

the organization wants to attract through their product offering. It is important to our

company that we identify our targets markets to offer our products to actual or potential

customers in the markets to generate our sales. Other than that, by identifying our target

markets, we can know whether our products are enough to compete with other

competitor.

The Spa S is situated at the centre of Bandar Perda, specifically at the Bukit

Mertajam. Our customer can easily get to our location because it is near with the

housing area either the estate area or industrial area around Pulau Pinang. We have

chosen Bandar Perda based on its potential of developing, and also have a lot of

education institution which give benefits to our company therefore it is suitable for our

primary targets markets whose is university students, colleagues, lecturers and not

forgotten for our secondary targets, the public.

We focus more on our customer based on the geographical and demographic

factor. We know that Bandar Perda could help the growth of our company as it holds

potential customer especially university students. There is a lot of public transportation

that available in Bandar Perda, and make a stop opposite from our shop. It makes easier

for our targets markets to come to our Spa S.

Spa S targets market focused on:

Geographical Segmentation.

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In our business plan, the geographical segmentation will be divided into two

groups.

Location: We had chosen Bandar Perda as our business location. A few

reasons to support our choice are such as it is one of the strategic placed between

Bukit Mertajam and Butterworth. Besides that, the place is nearly too educational

place.

Distance: Location between Spa ‘S’ and our supplier is not far and our

supplier is not far. So, we do not need to hire van driver to go and get the stocks

from the supplier. Our stock will continuously to make sure that the products are

always in stock.

Demographic Segmentation

It is another important element of segmentation for most marketers. It referred to

the process of dividing the market into different groups on the basis of

demographic variable such as age, sex, family, religion, race, nationality,

education, income and occupation.

Age : We concentrate on our target markets group, which age mostly

between 20 to 40 years old. This rage is the highest potential customers using and

will be buying our products.

3.3 MARKET SIZE

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Markets size refers to the value of the whole potential purchase by a group of

targets including those proportion controlled by existing competitor in the same market.

Base on our research, we estimate that there are about 88,000 people living in Bandar

Perda. This amount includes the school and university students also working citizens.

Calculation of total market size per year is as follow:

University/college students 17,000

Working Citizens 28,000

Total markets size 45,000

Estimate resident in Bandar Perda

Estimate average price four products:

Income from markets size = Estimate resident X Estimate average

price of expenses per year

= 720 person X RM150 X 12month X4spa

= RM 5,184,000

Income from markets size = Income from market size per year

/12 per month

= RM 5,184,000/ 12

= RM 4,320,000

3.4 COMPETITORS

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Competitors can be known as other business or company that offering the

package of treatment to the same target markets as ours. We had identified our

competitors to help us to analyze our capability in controlling the market.

Even though we believe and confidence with our company, we still have to

analyze the strength and weakness of our competitors. It is important to us to make sure

that we will always improve our company to compete with the existence competitor.

Company Strength Weaknesses

Teratak Spa -Store concept is quite

attractive.

-Price is quite cheap.

-Worker not fluent in communicate in Malay &

English

-Not enough experience.

-Not comfortable.

-The shop is very small.

-Not strategic and hidden business location (dead

location).

Mustika Ratu -Hold second highest market

share.

-Worker fluent in

communicate in Malay &

English

-Low promotion and depends on signboard.

-Have basic service only.

-Unfriendly workers.

-Operation hour are not properly managed.

Nouvelles -Been in the market for quite

a long time.

-Have their regular

customers.

-Hold the largest markets

-Not interesting landscape.

-The real price is expensive.

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share.

-Price offered is quite high.

3.5 MARKET SHARE

Market share is referring to the approximate market proportion (in percentage)

controlled by the business after considering the whole market size and the influence of

the competitor in the same target market. Our competitor already been establish earlier

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than SPA ‘S’ and have their own strength, power and invincibility in the market. Each of

these competitors has control the markets share with the different amount.

Below is the markets share per year before SPA ‘S’ entry:

Company Percentage of market

Share (%)

Value (RM) per year

Teratak Spa 15 777,600

Mustika Ratu 35 1,814,400

Nouvelles 50 2,592,000

Total (market size) 100 5,184,000

Below is the markets share per year after SPA ‘S’ entry:

Company Percentage of

markets share

(%)

Value (RM) per

year

(%) Lose of market

new share

Teratak Spa 11 570,240 4

Mustika Ratu 32 1,658,880 3

Nouvelles 47 2,436,480 3

SPA ‘S’ 10 518,400 -

Total 100 5,184,000

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3.6 SALES FORECAST

36

Sales Forecast referring to the expected purchase from the identified and selected

targets markets. In order to prepare this sales forecast we had considered a few things

such as markets size, the competitor, customer awareness, market share and seasonal

factor.

Sales Forecast for SPA ‘S’

1st Year (2009)

Month Sales Collection

January 22,860

February 33,140

March 43,150

April 43,170

May 43,200

June 53,190

July 43,170

August 43,190

September 53,090

October 43,170

November 43,390

December 53,680

Year 1 Total Sales 518,400

Sales Forecast for SPA ‘S’

Second and Third Year

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Year Increment Percentage Sales Collection

2nd year 5% RM 544,320

3rd year 10% RM 598,752

3.7 MARKETING STRATEGY

38

Market strategy is the activities of selecting and describing one or more target

markets, developing and maintaining a marketing mix that will produce mutually

satisfying exchanges with targets market. The marketing strategy consists of four key

variables; also known as the marketing mix or the 4P of marketing.

The term marketing mix referring to a unique blend of product, distribution,

promotion and pricing strategies designed to produce mutually exchanges with a target

market. The SPA ‘S ‘is a spa that has potential to be a successful spa. It is also an

interesting business and has great potential to gain high profits.

The marketing unit plays an important role to plan wise strategies and ways to achieve

the company’s goal. Providing excellent product and services as well as to gain profits

can do it. To focus of marketing strategies is to enhance, introduce the products, and

determine the prices and also the place of the company for community. The SPA S is

still new in the market, the marketing unit plays important role to introduce and to attract

customer. The SPA ‘S‘has set the marketing strategy according to the marketing mix.

Product

Price

Place

Promotion

PRODUCT/SERVICE STRATEGY

39

In term of product, our business had come up with a few strategies to attract

customer. It is the combination of attribute like style of brand, quality, service and

protection. These could be anything that a business firm offers to customers for their

satisfaction or benefits. Therefore, to satisfy our customer’s needs and want, the SPA ‘S’

will be focusing more on the quality of each service.

SPECIAL PACKAGES

Our Spa ‘S’ will offer special packages to and encourage customers to come

again to get our satisfy’s services with reasonable prices and worth.

AFTER SALE SERVICE

Particular attention should also be given to after sale service .Today’s

customer demand choice, quality and a high-level of service .Good after sale

service will show to customers that we really appreciate our customers

whether satisfied with our services.

PRICING STRATEGY

40

Pricing strategy

The price of the products or service is the amount of money charged to the customer for

a particular purchase. As the only element in the marketing mix that generates revenue,

an entrepreneur must understand the important of pricing a product or service right.

Cost – based pricing

Cost – based pricing is the simplest and most commonly use pricing strategy. Cost –

based pricing is based on the total cost of the product or service plus a standard

Mark –up .The mark-up is the profit margin that is desired from the sale of the product.

The decision on the percentage mark-up is made base on the following factor;

Average profit margin in the industry

The number and strength of competitors in the same area or in the same

industry

Price = Total Cost Per Unit + Profit Margin

Cost – based pricing is often used as a guide in pricing .The offering price to the

customer may be lower or higher. This is a result of other factors such as customer’s

willingness to pay for the product or service, pressure from competitors and the supply

and demand factor. This strategy is used in certain circumstances whereby;

The business wishes to finish the stock of good

The business is confident that sales of other product will cover the loss on

the sales of the particular product

The business is utilizing this strategy to penetrate the market.

DISTRIBUTION STRATEGY

41

Distribution strategy is aimed at establishing a structure and controllable distribution

system to ensure the product offered reaches the target customer .A distribution channel

moves goods from procedures to consumer.

Since we a providing a service to our customer, we are using direct consumer channel to

our customer. This type of channel is called the direct marketing channel or channel one.

It has no intermediate parties and is totally consist of direct selling business, or more

accurately, direct service business.

PROMOTION STRATEGY

Advertisement

42

In order to introduce and promote our spa to our targeted customers or even everyone,

we decide to choose several mediums to let everyone knows about the existence of our

spa.

1) Printed media

We use to promote our service is in printed media such as newspaper like KOSMO. We

will print for 3 first months, once for a week. We confident through this promotion

method more efficient because most of peoples get any information from this source.

The cost is RM 2400.

2) Internet

FACIAL TREATMENT SAUNA TREATMENT BODY TREATMENT MASSAGE TREATMENT HAIR TREATMENT PEDICURE & MANICURE TREATMENT


Bandar Perda, 14500, Bukit Mertajam, Pulau Pinang. www.spas.com.my

Phone: 04-3138697 Fax: 04-3138698

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Internet is very important for each company to distribute and promote their

product/service to international market. All the customers can access and get

information from our website, www.spas.com.my. The total cost for promote our

spa through internet is RM 166 annually.

3) Business card

44

Business card is more important element at now to get information of business. Our

business cards consist of all available details like name staffs, premise address and

telephone, fax number to ease customer contact us at any time. The cost for 1 card is

about RM 0.10. Therefore, we plan to do 250 pieces card at the beginning and it will

cost RM250.

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Phone: 04-3138697Fax: 04-3138698E-mail: [email protected]

S H A Z A N A A S M A I Z Z A T I

B T S H A T A

G e n e r a l M a n a g e r

O f

S p a ‘ s ’

NO 1, Lorong perda barat 1,Bandar perda,14500, bukit mertajam,Pulau pinang.

Bandar

Phone: 04-3138697Fax: 04-3138698E-mail: [email protected]

S I T I H A R I S H A H

B T E A Z M A N

A D M I N I S T R A T I O NM A N A G E R

O f S p a ‘ s ’


46

Phone: 04-3138697 Fax: 04-3138698 E-mail:[email protected]

Phone: 04-3138697 Fax: 04-3138698 E-mail: [email protected]

S A B R A T U N S ’ A D I A H

B t e Z U L K A F L I

M A R K E T I N GM A N A G E R

O f S p a ‘ s ’

NO 1, Lorong perda barat 1, Bandar perda, 14500, bukit mertajam, Pulau Pinang.

N U R U L S H A F I Z A

M O H D S H A H R U D I N

F I N A C I A LM A N A G E R

O f S p a ‘ s ’

Phone: 04-3138697 Fax: 04-3138698 E-mail:[email protected]

S I T I N U R U L F A R A H

B T E A B D O L M A J I D


NO 1, Lorong perda barat 1, Bandar perda, 14500, bukit mertajam, Pulau Pinang.

O P E R A T I O N M A N A G E R

O f S p a ‘ s ’

4) Banner

FACIAL TREATMENT SAUNA TREATMENT

BODY TREATMENT MASSAGE TREATMENT

HAIR TREATMENT PEDICURE & MANICURE

TREATMENT

We put the banner in locations that easy to people see. Function of this banner is same

with business card and signboard. The banner will put up about two weeks before our

company open officially. We will hang our banner in front of our premise and at the

strategic place such as main road, public area like in shopping complexes. This banner

will make according to the current activities and festival season. We order banners to

same company who make our signboard with cost RM50.

47

5) Signboard.

The objective of using signboard is to make sure our potential customer notice and

realized that we are existed. The signboard will include our company name and logo. We

have ordered signboard from advertising company and it has costs us RM3000.

48

No 1, Lorong Perda Barat 1,Bandar Perda,

14500, Bukit Mertajam,Pulau Pinang.

www.spas.com.myPhone: 04-3138697 Fax: 04-3138698


6) Pamphlet

We will print our pamphlet around RM 0.80 for each 500 copies to be locating in our

spa to further information about our services and treatment provides. The total cost is for

RM 400.

49

7) Flyers

We will pass our flyers around 2000 pieces to people in area Perda as one of a method of

promotion to introduce our new SPA ‘S’ to people in area Perda. The cost for RM 8 for

each 1000 pieces. Therefore, we plan to do 2000 pieces card at the beginning and it will

cost RM16.The fee for distribute to resident around Perda is RM 40.The total cost for

flyers is RM 56.

50

3.8 MARKETING BUDGET

The SPA ‘S’ marketing budgets for us to promote the company are as below:

Particulars Property

Expenses

(RM)

Monthly

Expenses

(RM)

Other

Expenses

(RM)

Newspapers(KOSMO) 2400

Internet 166

Business Card 250

Banner 50

Signboard 3000

Pamphlet 400

Flyers 56

Utilities 150

TOTAL 3000 2550 922

51

OPERATION PLAN

4.0 INTRODUCTION

The SPA ‘S’ company is the form of partnership. This outlet is located at No1

Lorong Perda Barat 1, Banda Perda, 14500 Bukit Mertajam , Pulau Pinang.It will operate

on the 1st January 2010. Operation plan involves the production of a product or service

according to the quantity, quality, specification and time specified by the customer at the

lowest cost possible. Operational activities include business inputs, transformation

process and output.

Operation management can be defined as the process of marshalling resources to

produce output through the transformation process. The transformation process comprises

three main components, i.e. business input, transformation system and output.

Input refers to all resource to produce a particular output suggest manpower, raw

materials, machines, equipment, technology, and capital. Transforming system refers to

activities involved in transforming input into output. Output is an end product that results

from the transforming process.

SPA ‘S’ company is a new comer in this business. The operation department

must provided proper and effective plan to ensure our services meet the quality standard

and fulfill customers demand.

52

4.0.1 OBJECTIVES OF OPERATION PLAN

Operation department is department where activities like planning control and

maximizes the utilization of all the sources provide. Level of the production/operation

work is efficient with the systematic planning in operation department. Its need every part

to give commitment in order to achieve objectives that have been determined.

Objective of SPA ‘S’ operation department are:

To fulfill the customers demand.

To produce the high quality of services.

To achieve maximum profit.

To avoid operational problem.

To define individuals’ vision and mission.

Motivate workers to achieve goals.

To maintain level of operation services by follow the all procedure.

In order to meet the objective of the operation plan successfully, we have our own

strategies which are:

Ensure our company has a good reputation in the market

Keep business running smoothly and efficiently

Ensure all employee understand about their responsibilities towards the company

Ensure that customer satisfied with the product and services that we produce

Overcome problem that may arise with immediate and efficient solution

Keep good relationship with customer and suppliers

Keep on improving the operation system

Provide satisfaction quality of services to customer

53

4.0.2 OPERATION STRATEGIES

1. Improve our efficiency and skills when deal with costumers especially

when providing the products and services

2. Improve the quality of our products and services so we can have a good

relationship with the customer

3. Provide services on the time and avoid any error in other to ensure our

products and services in good quality

4. Ensure that we are responsible to our products and services that can attract

the customers.

5. Check all order received from supplier on time whether it is enough or not.

54

4.1 LOCATION STRATEGIES

Spa S Enterprise is located at Bandar Perda , Bukit Mertajam. We choose this

location because it is strategic locations since it is located in the centre of the Bukit

Mertajam town which is near to the residential area, industrial zone, shopping mall and

commercial centre.

55

4.2 OPERATION PROCESS

INPUT

MATERIAL OF TREATMENT

OUTPUT

SERVICE TREATMENT

56

4.2.1 OPERATION HOURS

DAY WORKING HOURS

SUNDAY 10.00am – 7.00pm

MONDAY 10.00am – 7.00pm

TEUSDAY 10.00am – 7.00pm

WEDNESDAY CLOSED

THURSDAY 10.00am – 7.00pm

FRIDAY 10.00am – 7.00pm

SATURDAY 10.00am – 7.00pm

57

4.3 PROCESS FLOWCHART

GENERAL PROCESS FLOW CHART

58

PROCESS FLOW CHART (SPECIFIC TREATMENT)

a) Facial Treatment

59

60

b) Manicure and Pedicure

61

c) Hair Styling, Hair Removal and Makeup

62

d) Full Body Treatment

63

64

FINAL PROCESS FLOW CHART

65

SYMBOL IN THE FLOW CHART PROCESS

SYMBOL ACTIVITY EXPLANATION

OPERATION PROCESS

The operation activity happens when

customer come to discuss. Customer will

register first at the reception and then will

wait to take their maid or trainees.

DELAY

Delay happens when preparing all the data

of applicants before distributing all the

maid and workers.

Table: Symbol in the flow chart Process

66

4.4 CAPACITY PLANNING

The capacity planning for our company it is to calculate people that using our service in

one month.

Per Day = sales forecast

day

= 43 200

26

=RM 1662

Per Hour = 1662

8hours

= RM 208

67

4.5 MATERIAL REQUIREMENT PLANNING

a) Facial Treatment

Item Quantity required

(bottle)

Price per unit

(RM)

Total purchase

(RM)

Cleansing Milk 1 9.50 9.50

Ac cream 1 19.00 19.00

Ac prone lotion 1 25.00 25.00

Collagen cream 1 20.00 20.00

Superb cleansing/

scrub Gel/ AHA/BHA

1 12.00 12.00

Renewal cream 1 39.00 39.00

Gold moisturizer 1 29.00 29.00

Whitening essence 1 35.00 35.00

Total 188.50

b) Body Treatment


(bottle)

Price per unit

(RM)

Total purchase

(RM)

Milky bath 1 15.00 15.00

Body lotion refreshing 1 15.00 15.00

Body scrub:

Arabica blend

Refreshing

sugar scrub

Lulur serai

1

1

1

19.90

19.90

19.90

19.90

19.90

19.90

68

wangi

Armpit

Body ginger

Body scrub

Tamarind&

cinnamon

1

1

1

14.00

19.90

19.90

14.00

19.90

19.90

Aroma 3 100.00 300.00

Total 443.50

c) Hair Treatment


(bottle)

Price per unit

(RM)

Total purchase

(RM)

Shampoo:

Aloe vera

Santan

kelapa

Ginseng

Limau purut

1

1

1

1

14.00 56.00

Cream bath 1 18.00 18.00

Aloe Vera hair

conditioner

1 15.00 15.00

Hair tonic 1 14.00 14.00

Total 103.00

69

d) Sauna Treatment


(bottle)

Price per unit

(RM)

Total purchase

(RM)

Herbal 2 25.00 50.00

Total 50.00

e) Pedicure & Manicure Treatment

Item Quantity required Price per unit

(RM)

Total purchase

(RM)

Set treatment

Pedicure &

Manicure

1 100.00 100.00

Total RM 100.00

f) Massage Treatment

Item Quantity required Price per unit

(RM)

Total purchase

(RM)

Oil for massage 2 50.00 100.00

Tungku Crystal Set 2 50.00 100.00

Total RM 200.00

70

TOTAL COST MATERIAL (MONTHLY & ANNUALLY)

Equipment Cost per

equipment per set

(RM)

Quantity Total cost

(RM)

Facial treatment 188.50 20 3,770.00

Body treatment 443.50 16 7,096.00

Hair treatment 103.00 20 2,060.00

Sauna treatment 50.00 8 400.00

Pedicure & manicure 100.00 4 400.00

Massage treatment 200.00 8 1,600.00

Total 985.00 15,326.00

4.6 LIST OF MACHINES AND EQUIPMENT

71

No Item Quantity Price per unit

(RM)

Total

(RM)

1. Facial bed 4 150.00 600.00

2. Facial steam

machine

1 199.00 199.00

3. Facial leans 1 200.00 200.00

4. Facial galvanic

machine

1 450.00 450.00

5. Chair 4 70.00 280.00

6. Steam hair

machine

2 200.00 400.00

7. Hair dryer

machine

2 100.00 200.00

8. Hair stylish set 2 100.00 200.00

9. Trolley 5 30.00 180.00

10. Sauna set 2 400.00 800.00

11. Bath tab 2 200.00 200.00

12. Heater 1 30.00 30.00

13. Freezer 1 200.00 200.00

14. Mirror 1 100.00 100.00

15. Decoration tree 12 10.00 120.00

16. Sofa set 1 1000.00 1,000.00

Total 5,159.00

4.6.1 MANPOWER PLANNING

72

Organization Chart

General Manager

S haz ana As ma i zz a t i

S ha t a

Worker

Siti Nurul Farah Abd Majid

Worker

Siti Harishah Azman

Worker

Sabratun S’adiah Zukafli

Worker

S ha f i za Mohd

S hah rud i n

CLERK

73

SCHEDULE OF TASKS AND RESPONSIBILITIES

Position Tasks And Responsibilities

General Manager

Responsible for the overall and management the

company.

Managing and ensuring the company’s business

activities are profitable and it resources efficiently

and effectively utilized in pursuit of business goals

and objectives.

Directing to company’s of planning activities and

provides leadership and overall guidance.

In orchestrating the company’s strategies and

direction, the core responsibilities will include

marketing and business agreement.

Guiding and monitoring a workers

Give customer guidance if the customers need help.

Do treatment for customer

Worker

Ensure the company service achieve the specific

level.

Ensure that all service that are provide meet the

customer’s need and wants.

Give customer guidance if the customers need help.

Do treatment for customer

Clerk

Set all appointment for customer before do the

treatment

Ensure all the material that use for treatment always

available.

Answer phone call

Cashier

74

Incentives and Benefits for Workers Commitment

The work force is the most importance asset of our organization because it is the

main factor to ensure the success of the business. Beside that, with attractive salary and

comfortable environment, our company also provides other incentive to satisfy our

employees need.

These are incentives:

Employee’s leave

- Medical leave

o Full salary paid for 10 days medical or case (only on condition) for

the employee and the entire company member. All medical fees

will be paid by the company on condition the workers refer do the

clinic that is in the list of the company medical panel.

- Annual leave

o 14 days will be given to all employees. This excludes public

holiday.

- Marriage leave

o This leave will be given up to 7 days (once in a life time)

Medical Treatment

- The payment for medical treatment will be liable of the organization if the

employee undergoes treatment or check-up at respective hospitals or

clinics that has been approved by our company.

75

Employee Salary

- The employees also can have an increment of salary. The increment base

on the performance of the workers, company profit and company decision.

Beside that, it is also dependable on the criteria of the employees. The

criteria are:-

o Qualification

o Skills

o Quality of works

o Discipline

o Good commitment

Employee Provident Fund (EPF)

- This scheme is deducted from the employee’s salary at the rate of 12% per

month, which has been fixed by the government.

SOCSO

- This scheme is deducted from the employee’s 2% salary. In order to

ensure safety and security of the employees, our company organization

has agreed to give compensation to our employees in the case of the work

related accident. This compensation will be based on the rate, which has

been fixed by the government. The rate is according to the table issued by

SOCSO Department.

Bonus

- Our company will give annual bonus according to the profit gain.

Insurance

- Every worker will be covered under insurance scheme

76

LAYOUT PLAN OF OPERATION AREA

77

78

4.7 OPERATION OVERHEAD

The extra cost that we use for the operation:

Description

Fixed Assets

Expenses

(RM)

Monthly

Expenses

(RM)

Other

Expenses

(RM)

Total

(RM)

Telephone- 200.00 - 200.00

Water - 50.00 - 50.00

Electricity- 800.00 - 800.00

Total - 850.00 - 850.00

4.8 OPERATION BUDGET

Description

Fixed

Assets

Expenses

(RM)

Monthly

Expenses

(RM)

Other

Expenses

(RM)

Total

(RM)

Machine & equipment 5,159.00 5,159.00

Raw material 15,326.00 15,326.00

Renovation 15,000.00 15,000.00

Overhead cost 850.00 850.00

Total 36,335.00

79

5.0 Financial Plan

5.0.1 Introduction

The administration, marketing and operational is important in a business plan.The administration, marketing and operational is important in a business plan.

However without any proper financial planning the implementation of a business is netHowever without any proper financial planning the implementation of a business is net

worth it. From the data and information that included in the financial plan, it will help theworth it. From the data and information that included in the financial plan, it will help the

company to evaluate their ability in managing their financial in order to run the business. company to evaluate their ability in managing their financial in order to run the business.

Financial plan is the plan that shows the short term financial requirement in orderFinancial plan is the plan that shows the short term financial requirement in order

to start a new business. It also shows how the requirement can finance the business usingto start a new business. It also shows how the requirement can finance the business using

internal and external source. Beside that it can prove the reliable information aboutinternal and external source. Beside that it can prove the reliable information about

changes ion net resource resulting fro profit directed activities. changes ion net resource resulting fro profit directed activities.

Financial planning is the last thing to prepare in this project to complete the Financial planning is the last thing to prepare in this project to complete the

business plan. It consists of total expenditure and budget to establish a good business. Allbusiness plan. It consists of total expenditure and budget to establish a good business. All

the expenditure is such as administration, marketing, and operation budget. Actually, thethe expenditure is such as administration, marketing, and operation budget. Actually, the

basic objective of financial plan is to provide financial information which is important inbasic objective of financial plan is to provide financial information which is important in

determining some economic decision. Financial information is not information which isdetermining some economic decision. Financial information is not information which is

needed to be considered in making decision, but it is more important than that. We canneeded to be considered in making decision, but it is more important than that. We can

say that, every decision make will base on financial information.say that, every decision make will base on financial information.

80

5.0.2 Purpose of Financial Plan5.0.2 Purpose of Financial Plan

To analyze the project and financial planTo analyze the project and financial plan

To ensure the initial capital are adequate, ability and sufficientTo ensure the initial capital are adequate, ability and sufficient

To identify the purpose and relevant source of fundTo identify the purpose and relevant source of fund

To determine the amount of loan re-payment and depreciation of fund fixed assetTo determine the amount of loan re-payment and depreciation of fund fixed asset

To appraise availability before actual investment is committedTo appraise availability before actual investment is committed

To evaluate how far or potential return on investment To evaluate how far or potential return on investment

To make a party such as a financial institution to be confidence with the financialTo make a party such as a financial institution to be confidence with the financial

of the company in order to make a business loan of the company in order to make a business loan

81

5.0.3 Strategies of Financial Plan5.0.3 Strategies of Financial Plan

Makes sure that company have sufficient amount of cash in order to take trade Makes sure that company have sufficient amount of cash in order to take trade

discount, to maintain credit rating and to meet unexpected cash needsdiscount, to maintain credit rating and to meet unexpected cash needs

Give advise and opinion to other department such as administration, marketing Give advise and opinion to other department such as administration, marketing

and operation in order to reach the business purposeand operation in order to reach the business purpose

Make sure the increase in business profit at the good stage and better performingMake sure the increase in business profit at the good stage and better performing

Make sure that cash was used efficient and effectively without wastage in Make sure that cash was used efficient and effectively without wastage in

expensesexpenses

Try to seek business opportunity in order to increase the financial strength or Try to seek business opportunity in order to increase the financial strength or

wealth of economywealth of economy

82

5.0.4 Administration, Operation and Marketing Budget

5.0.4.1 Administration Budget

For administrative budget, overall budget is RM 55,659. This budget is only for ourFor administrative budget, overall budget is RM 55,659. This budget is only for our

office not includes marketing or operation.office not includes marketing or operation.

83

5.0.4.2 Operation Budget

For operation budget, overall budget is RM 35,485. This budget is on operation in ourFor operation budget, overall budget is RM 35,485. This budget is on operation in our

company. For operation, we did not hire any worker. Raw materials, machinery andcompany. For operation, we did not hire any worker. Raw materials, machinery and

equipment are used for treatment on our customers.equipment are used for treatment on our customers.

84

5.0.4.3 Marketing Budget

For marketing budget, overall budget is RM 6186. This marketing budget is use toFor marketing budget, overall budget is RM 6186. This marketing budget is use to

promote our spa and what services are include in our spa.promote our spa and what services are include in our spa.

85

5.1 Project Implementation Cost and Sources of Finance

86

5.3 Depreciation Schedules

87

88

5.4 Loan and Hire Purchase Ammortisation Schedules

89

5.6 Cash Flow Performance

90

91

10 11 12 TOTAL YR

1 YEAR 2 YEAR 3

99,632 0

43,170 43,390 53,680 518,400 544,320 598,752

43,170 43,390 53,680 618,032 544,320 598,752

16,999 16,999 16,999 203,988 203,988 203,988 950 950 950 11,400 11,400 11,400 100 100 100 1,200 1,200 1,200

2,800 2,800 2,800 33,600 33,600 33,600

150 150 150 1,800 1,800 1,800 56 56 56 672 672 672

400 400 400 4,800 4,800 4,800 2,400 2,400 2,400 28,800 28,800 28,800

17,800 17,800 19,400 206,952 217,299 239,029 1,316 1,316 1,316 4,600 800 52,749 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

41,655 41,655 43,255 552,677 504,875 526,605

1,515 1,735 10,425 65,355 39,445 72,147

51,680 53,195 54,930 65,355 104,800

53,195 54,930 65,355 65,355 104,800 176,947

92

5.7 Pro-Forma Income Statement

SPA 'S'

PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3

Sales 518,400 544,320 598,752

Less: Cost of Sales

Opening stock

Purchases 206,952 217,299 239,029

less: Ending Stock

Carriage Inward & Duty

Gross Profit

Less: Enpenditure

Administrative Expenditure 250,188 250,188 250,188

Marketing Expenditure 36,072 36,072 36,072

Other Expenditure 1,316 1,316 1,316

Business Registration & Licences

800

Insurance & Road Tax for Motor Vehicle

Other Pre-Operations Expenditure

Interest on Hire-Purchase

Interest on Loan 0 0 0

Depreciation of Fixed Assets 10,550 10,550 10,550

Operations Expenditure

Total Expenditure 505,878 515,425 537,155

Net Profit Before Tax 12,522 28,895 61,597

Tax 0 0 0

Net Profit After Tax 12,522 28,895 61,597

Accumulated Net Profit 12,522 41,417 103,015

93

5.8 Pro-Forma Balance Sheet

SPA 'S'PRO-FORMA BALANCE SHEET

Year 1 Year 2 Year 3 ASSETS Fixed Assets (Book Value) Land & Building Furnitures 18,728 14,046 9,364

Renovation 4,800 3,600 2,400

Signboard 2,400 1,800 1,200

Cash Register Machine 144 108 72

Machinery & Equipment 4,127 3,095 2,064

Renovation 12,000 9,000 6,000

42,199 31,649 21,100

Current Assets Stock of Raw Materials 0 0 0 Stock of Finished Goods 0 0 0

Accounts Receivable

Cash Balance 65,355 104,800 176,947

65,355 104,800 176,947

Other Assets Deposit 4,600 4,600 4,600 TOTAL ASSETS 112,155 141,050 202,647

Owners' Equity Capital 99,632 99,632 99,632 Accumulated Profit 12,522 41,417 103,015

112,154 141,049 202,647

Long Term Liabilities Loan Balance 0 0 0

Hire-Purchase Balance

0 0 0

Current Liabilities Accounts Payable

TOTAL EQUITY & LIABILITIES

112,155 141,050 202,647

5.9 Financial Performance

94

SPA 'S'

FINANCIAL PERFORMANCE

Year 1 Year 2 Year 3

PROFITABILITY Sales 518,400 544,320 598,752 Gross Profit Profit Before Tax 12,522 28,895 61,597 Profit After Tax 12,522 28,895 61,597 Accumulated Profit 12,522 41,417 103,015 LIQUIDITY Total Cash Inflow 618,032 544,320 598,752 Total Cash Outflow 552,677 504,875 526,605 Surplus (Deficit) 65,355 39,445 72,147 Accumulated Cash 65,355 104,800 176,947 SAFETY Owners' Equity 112,154 141,049 202,647 Fixed Assets 42,199 31,649 21,100 Current Assets 65,355 104,800 176,947 Long Term Liabilities 0 0 0 Current Liabilities 0 0 0 FINANCIAL RATIOS Profitability Return on Sales 2% 5% 10% Return on Equity 11% 20% 30% Return on Investment 11% 20% 30% Liquidity Current Ratio #DIV/0! #DIV/0! #DIV/0! Quick Ratio (Acid Test) #DIV/0! #DIV/0! #DIV/0! Safety Debt to Equity Ratio 0.0 0.0 0.0 BREAK-EVEN ANALYSIS Break-Even Point (Sales) 495,367 494,034 494,034 Break-Even Point (%) 96% 91% 83%

5.10 Graph Financial Performance5.10 Graph Financial Performance

95

CONCLUSION

96

Now in globalization period, everyone are busy with their own carrier and more

focus with work and money only. It is because money is everything in our life. In this

case many women and girl are not enough time to spent time for their beauty. So, with

opening our new spa, all women which placed nearly at Bandar Perda are no need to be

worry about their beauty because they can have a treatment in our spa. Beauty is very

important to women like our motto, ‘Health and Beauty’. Many treatment packages is

provided in our spa, so customer no need to worry because their beauty and health will be

fine.

Spa is one of business are provided service treatment beauty and health business.

With our skill, experience and studies background, we can handle and will success in this

business. We hope one day our spa will be success and have some branches in Malaysia

and to be the most successfully spa in Malaysia.

97

Documents

Entrepeneurship Business Report 2 (SPA) (diploma study)