Entreprise management

Enterprise Management

Table of ContentsWork Breakdown Structure.........................................................................................................................5

Workload Matrix.........................................................................................................................................7

1.0 Introduction...........................................................................................................................................8

1.1 Executive summary............................................................................................................................8

1.2 Company Background........................................................................................................................8

2.0 External Environment Analysis..............................................................................................................9

2.1.0 Pest Analysis...................................................................................................................................9

2.1.1 Political.......................................................................................................................................9

2.1.2 Economic....................................................................................................................................9

2.1.3 Social.........................................................................................................................................10

2.1.4 Technological............................................................................................................................10

2.2.0 Porter’s five forces........................................................................................................................10

2.2.1 Barriers to Entry........................................................................................................................10

2.2.2 Competitive Rivalry...................................................................................................................11

2.2.3 Supplier Power..........................................................................................................................11

2.2.4 Buyer Power.............................................................................................................................11

2.2.5 Threat of Substitutes................................................................................................................11

3.0 Internal Environment Analysis.............................................................................................................12

3.1 Marketing........................................................................................................................................12

3.2 Finance............................................................................................................................................12

3.3 Research &Development.................................................................................................................12

3.4 Operations& Logistics......................................................................................................................13

3.5Human Resource Management........................................................................................................13

3.6 Information Systems........................................................................................................................13

4.0 SWOT...................................................................................................................................................14

4.1 Strength.....................................................................................................................................14

4.2 Weakness...................................................................................................................................15

4.3 Opportunity...............................................................................................................................15

4.1 Threat........................................................................................................................................16

5.0 Market.................................................................................................................................................19

5.1 Industry analysis..............................................................................................................................19

5.2 Market targeting..............................................................................................................................19

Asia Pacific University Page 1


5.3 Marketing strategies........................................................................................................................20

5.4 Marketing expenditure....................................................................................................................21

5.5 Sales forecast...................................................................................................................................22

6.0 Competitors.........................................................................................................................................23

6.1.0 Competitor 1: OldTown White Coffee..........................................................................................23

6.1.1 Strength....................................................................................................................................23

6.1.2 Weaknesses..............................................................................................................................24

6.2 Competitor 2 : Kluang Station..........................................................................................................25

6.2.1 Strength....................................................................................................................................25

6.2.2 Weaknesses..............................................................................................................................25

7.0 Operational Plan..................................................................................................................................26

7.1 Production process..........................................................................................................................26

7.2 Purchase Forecast............................................................................................................................27

7.3 Machine and Equipment..................................................................................................................29

7.4 Furniture and fitting.........................................................................................................................30

7.5 Operational Layout Plan..................................................................................................................30

7.6 Operation Budget............................................................................................................................32

8.0 Human Resource Plan..........................................................................................................................33

8.1 Organisation chart...........................................................................................................................33

8.2 Manpower planning........................................................................................................................33

8.3 Schedule of tasks and responsibilities.............................................................................................34

8.4 Schedule of remuneration...............................................................................................................35

8.5 Administrative budget.....................................................................................................................35

9.0 Risk & Contingencies...........................................................................................................................36

10.0 Financial Plan.....................................................................................................................................38

10.1 Source of finance.......................................................................................................................38

10.2 Project Implementation Cost..........................................................................................................38

10.2 Pro forma income statement for year 1....................................................................................40

10.3 pro forma balance sheet............................................................................................................41

12.0 Conclusion: Personal Reflection........................................................................................................43

12.1 Personal Reflection (Oloutoyin Salomon Laleye TP025214)..........................................................43

12.2 Personal Reflection (Chan Soo Yee TP022602)..............................................................................44

12.3 Individual Journal Reflection – Muhammad Septian Nugraha TP025065......................................46

12.4 Personal Reflections (Lim Ee Syen TP025415)...............................................................................48



References.................................................................................................................................................50

Work Breakdown Structure

Name

Task

OLOUTOYIN SALOMON LALEYE

TP025214

MUHAMMAD SEPTIAN NUGRAHA

TP025265

CHAN SOO YEE

TP022602

LIM EE SYEN

TP025415

1.0 INTRODUCTION

1.1 Executive Summary

1.2 Company Background

2.0 External Environment Analysis

2.1.0 Pest Analysis

2.2.0 Porter’s Five Forces

3.0 Internal Environment Analysis

3.1 Marketing

3.2. Finance

3.3. Research &Development

3.4. Operation& Logistics

3.5. Human Resource Management

3.6. Information Systems

4.0 SWOT

4.1. Strengths

4.2.Weaknesses

4.3. Opportunities

4.4. Threats

5.0 Market



5.1.Industry Analysis

5.2 Market Targeting

Name

Task

OLOUTOYIN SALOMON LALEYE

TP025214

MUHAMMAD SEPTIAN NUGRAHA

TP025265

CHAN SOO YEE

TP022602

LIM EE SYEN

TP025415

5.3 Marketing Strategy

5.4 Marketing expenditure

5.5 Sales Forecast

6.0 Competitors

6.1. Competitor 1

6.2 Competitor 2

7.0 Operational Plan

8.0 Human Resource Plan

8.1 Organization chart

8.2 Manpower Planning

8.3 Schedule of Task and responsibilities

8.4 Schedule of remuneration

8.5 Administrative budget

9.0 Risk and Contingencies

10.0 Financial Plan

10.1. Source of Finance

10.2 Pro forma Income Statement

10.3 Pro forma Balance sheet

11.0 Conclusion

12.0 Supporting Documents

References





Workload Matrix

Content

Group members

MUHAMMAD SEPTIAN NUGRAHATP025265

OLOUTOYIN SALOMON LALEYETP025214

CHAN SOO YEETP022602

LIM EE SYENTP025415

Executive Summary 25 % 25 % 25 % 25 %

Company Background 25 % 25 % 25 % 25 %

External Environment Analysis100 %

Internal Environment Analysis100%

SWOT100%

Market100%

Competitors100%

Operational Plan100%

Human Resource Plan100%

Risks & Contingencies100%

Conclusion Personal Reflection 25% 25% 25% 25%

Signature



1.0 Introduction

1.1 Executive summary

Many years ago, to enjoy a classic 'kopitiam' meal in Malaysia, such as half-boiled eggs, toasted

bread with kaya and butter, and a cup of coffee, one will have to travel many miles back to their

hometown. Kopitiam is a traditional breakfast and coffee shop found in South East Asia. Since

the establishment of PappaRich in 2006, one need not go the distance. This is one big

accomplishment for the Malaysian as for the PappaRich itself, remembering it has all started in

2006 as one modern ‘kopitiam’ in Selayang mall in Malaysia before it went viral and has

multiplied to 41 shops around Malaysia by 2010.

1.2 Company Background

PappaRich is local food and beverage chain. The business was started in 2005. With its first

outlet in Selayang Mall, the company has been expending its outlets nationwide with 50 outlets

all over Malaysia. The company has been popular for its high quality food made up of Malaysian

traditional meals. To attract customer, PappaRich provides high quality meals at affordable

prices with the particular signature that the meal has fresh ingredients. The company also offers a

nicely environmental friendly decorated outlet for its customer to retain them and get them

accustomed to the place.

The company expects to grow its core business and expand its activities with the help of strategic

opportunities. Such investment could be a mean of uninterrupted resources and money to

improve PappaRich’s human capital, production process and the product quality. Its main goal is

to become the largest and most renowned Franchise locally as well as on an international plan.

(PappaRich, 2011)



2.0 External Environment Analysis

The external environment analysis in this business plan consists of two tools to analyze the

PappaRich restaurant business external environment which are PEST analysis and Porter’s Five

Forces.

2.1.0 Pest Analysis

2.1.1 Political

Due to Malaysia is a multi-ethnic country and majority are Muslim people. In order to comply wi

th condition of the people, Paparich only consume foods and drinks which are certified halal,

and through this kind serving food and services, PappaRich has been officially assurance of

HALAL certificate by JAKIM (Jabatan Kemajuan Islam Malaysia). Thus, these will not be a

problem for those Muslim customers to having meal in PappaRich. Besides, a stable political

condition in Malaysia allows PappaRich run their business without any political pressures.

2.1.2 Economic

According to current economic situation, PappaRich have to do a survey to gather information

from the interview customers and give the important data to study the associated cost in

developing a new franchise for different city in Malaysia. In addition, the gathering of

information used to be identifying the needs of the local communities and consumption view.

Therefore, the company could determine the best price compared to their competitors in same

field.



2.1.3 Social

PappaRich has come out with a slogan “Malaysian Delight”, it is meant that combination of

different culture and foods to create a special and comfortable environment for customers by

emerging as a formidable player in the local food and beverage chain. In order to conform to

social customs, PappaRich has provided trainning for their worker which could communicate in

different language and provide good service with good attitude when serving customers.

2.1.4 Technological

Nowadays, ttechnology plays an important role to run the business, and plays huge part in the

market. PappaRich have implementing new technology which is real- time meal ordering system

which is the chef from kitchen can get the order list directly when customers ordered it. This

technology brings a lot of convenience for the customers that can have the meal in very short

period and it would make a good impression for customer with good services.

2.2.0 Porter’s five forces

2.2.1 Barriers to Entry

As the market for food and beverage business, PappaRich is attributed largely to the providing

high quality food, but due to many uprising companies such as “Chilli’s Grill Bar” and Station

One are grown extensity. PappaRich has to continuously growing and expanding their business

and provide product with affordable prices and all prepared with the best fresh ingredients to

retain PappaRich original taste and flavour. Besides, with the PappaRich open concept,

customers are able to see the foods or beverage being prepared on the spot, thus it will providing

a special eating experience that becomes a reason for customers to continuously return for more.

This fact is tackled hard because most new entrants do not have big capitals to support and

provide new experience and comfortable environment for customers yet.



2.2.2 Competitive Rivalry

PappaRich is a food and beverage company that has a lot of competitors in its particular industry.

The few examples among of this industry are Station One, OldTown and In-house cafe that are

equally famous and popularity in the industry. Due to the fierce competition in Malaysia,

PappaRich has come out with different category of meal menu to attracting customers such as

breakfast set, lunch set and others. Besides, PappaRich keep improving the diversity and quality

of the products to satisfy different customers’ tastes and stay competitive. However, customers

may switch their interest to competitors.

2.2.3 Supplier Power

Raw materials or ingredients used by PappaRich to produce good quality foods and beverage are

not scarce and it can have many different substitutes other than having good quality raw

materials such as PappaRich has produce their own brand coffee bean. Therefore, the company

will not affected by the power of suppliers.

2.2.4 Buyer Power

Buyers powers which is the right of customers are able to clamp down the company’s business

profit reduce. . The threats that exist for food and beverage industry is that there are a lot of firms

supplying the same products. Besides, customers have opportunities to survey and compare the

products within the different competitors. Due to the cost of switching suppliers is low price,

hence customers could find it easily with low price to switch to another suppliers.

2.2.5 Threat of Substitutes

A product for product substitute can be said as something that meets the same need. The extent

of this threat depends upon the price and performance of the substitute and willingness of

customer to switch. Therefore, price of products should be constantly revised in the market to

ensure affordability. In addition, the beverage itself must be proved worthy to continue its

attraction towards coffee lover.



3.0 Internal Environment Analysis

3.1 Marketing

Strengths

PappaRich restaurant is providing the popularity of food and beverage based on Malaysian

delights. Promotions of wholesome express value are available for the set breakfast. The

restaurant has been provided the Wi-Fi service to the customers whoever need the Internet

access for personal leisure and business field by using the smartphone, laptop, tablet and so

forth. Food and beverage is served in nice appearance with the cleanliness and comfortable

of dining environment.

3.2 Finance

Weaknesses

It is needed to pre-spend on more capitals for franchises opening. Loan is getting increased and

increased by growing up more franchises. Finance issues for startup franchises are such as

renovation, business registration, advertisement, rental fee and so forth. Therefore, the more

finance issues, the more liability issues.

3.3 Research &Development Strengths

For satisfying the ever-changing of customers’ taste, new menu has been conducted such as

Nasi Rich series, Hainan Toast series, cool refreshing beverage, steaming meals and

desserts. (PappaRich, 2011) Development of the business continuity is through expanding

the franchises in locally and internationally.



3.4 Operations& Logistics

Weaknesses

Unprofessional attitude and manner of the employees are caused to the customers dissatisfied

and displeasure. For instance, waiters are behaving as rude and impatient tone when

customers pay the bill. In logistic, customers are facing the food and beverages in the menu

are not available after ordered. Suppliers that provide the raw materials are not able to deliver

on time or inadequate replenish.

3.5Human Resource Management

Weaknesses

Most of the positions in the PappaRich human resource management are only need to meet the

minimum requirements and qualifications. It is difficult for employee retention due to less

benefit, incentive, reward and others. Additionally, the less hiring announcement is lead to the

insufficient people for recruitment

3.6 Information Systems Strengths

Information system that used in the PappaRich is food ordering system. It is faster and time-

saving due to real-time sending the orders into the kitchen and without the labor move in

move out the kitchen frequently. Yet, it is also able to auto-generate the calculation of

revenues in daily, weekly, monthly and yearly.



4.0 SWOT

As the businesses of restaurants are growing so fast nowadays, there are some factors that need

to be analyzed in order to keep up with the competitors. It consists of Strengths, Weaknesses,

Opportunities and Threats followed by the strategies that will be done in the future. By using the

SWOT analysis, the PappaRich serves the community with Malaysian’s kopitiam delicacies with

affordable prices with a classic coffee shop ambience in the terms of Strengths, in the terms of

opportunities the GDP and inflation rate has been steadily increasing in recent years. Meanwhile

two negative aspects in SWOT analysis there are weaknesses emerge for PappaRich to go into

international market which is the food that PappaRich is serving might not be accepted by the

locals. Besides that, the threats to the company are the political instability due to street protests.

As for the PappaRich’s success as of today is due to its successful differentiation business level

strategy to set them apart from similar companies that are running food and beverages industry.

PappaRich focuses on the quality of their product and consistently applying its best standards

throughout all their outlets. Even furthermore, the ambience is immensely making the consumers

held captive.

4.1 StrengthAs was mentioned in the introduction, PappaRich’s philosophy is to serve authentic, classic and

timeless Kopitiam meals, the traditional Malaysian style where the locals can mix and mingle in

the ambience of a relaxing atmosphere with a sense of belonging. In the sense of raw materials

PappaRich does not play around with their ingredients. Only selected meats and vegetables are

used in PappaRich, not to mention that they have to be incredibly fresh in order to fulfill their

dedication in serving high quality foods. In recent years, Malaysia has been adapting to

technology and applying the changes in every part of its businesses, including Food and

Beverages industry. Technology itself brings more good than harm. Take simple example,

people no longer require raising their hand just to make the waiter to pay attention to their table,

as there is now a small adorable button placed in every table waiting to be pressed. Another

major strength of the company is its emphasis on clientele service. In the F&B industry, it is

important to note that service is one of the main priorities in differentiating a good restaurant and

a bad one. Thus, PappaRich places much emphasis on its clientele service to not only lure first-

time or one-time customers but reoccurring customers, over and over again.



4.2 WeaknessA major setback that hinders the PappaRich’s kopitiam business to enlarge its wings into the

international markets is due to the consumers’ reception entirely. Take a good example, it is hard

to widen the business to Europe as the Europeans may have the different taste buds comparing to

Malaysians. Only the adventurous ones may venture out of their comfort zone into eating

Malaysian kopitiam cuisine. Furthermore, big, fascinating, classy restaurants are more preferred

in Europeans thus will cut out the PappaRich chances in opening the branches there. Also, the

management style used in Malaysia may not be applicable to the culture of the locals and

furthermore, new management style may have to be devised to suit the employees in there.

4.3 OpportunityMalaysia is well known for its quality of education, as a matter of fact plentiful of foreign

students are spread around Malaysia, as the numbers keep increasing remembering many more is

coming each year. This proves that Malaysia produces high quality of graduates regularly. When

a country is powered by intelligent and creative generations it is not hard to find qualified

candidates. A tempting opportunity like this is what PappaRich has to consider, by pulling in

talented workers the chances of dominating Food and Beverages industry is amazingly high.

Talking about another opportunity it is good for PappaRich currently to expand and open some

branches in Indonesia. Why? The exchange rate of Ringgit to US Dollar is significantly better

than Rupiah to US Dollar. This leads PappaRich a golden opportunity to build up some branches

there. Aside from the economical aspect, the taste buds of Malaysian and Indonesian are pretty

much the same. Absolutely there will be some minor adaptive actions need to be taken, but those

are nullified by the good results PappaRich can achieve by doing so.



4.1 ThreatAs food and beverages going rampant in any part of the world, the competitors are the main

threat for PappaRich, take Old Town White Coffee for example, this company has been running

for years and more or less has the same experience as the PappaRich possess. Their offers in

variety of foods also vary and they may have special promotions that PappaRich never think of.

The threat needs to be eliminated by studying customers’ current desire in filling the satisfaction

of their primary needs. Changes in government also may occur in the terms of standards and

taxes. While these threats need to be analyzed as thoroughly as possible PappaRich shall take the

opportunities that the others cannot find to continue the triumph.



Positive (to business achieving

its objective)

Negative (to business achieving its objective)

Internal (attributes of organization)

Strengths

Promotions of wholesome express

value, Wi-Fi service and

cleanliness and comfortable of

dining environment.

New menu has been conducted

such as Nasi Rich series for

satisfying the ever-changing of

customers’ taste.

Food ordering system is faster and

time-saving due to real-time

sending the orders into the kitchen

and without the labor move in

move out the kitchen frequently.

Weaknesses

Pre-spend on more capitals for

franchises opening due to loan

is getting increased and

increased by growing up more

franchises.

Unprofessional attitude and

manner of the employees are

caused to the customers

dissatisfied and displeasure.

Food and beverages in the

menu are not available after

ordered due to suppliers are

not able to deliver on time or

inadequate replenish.

Positions in the PappaRich

human resource management

are only need to meet the

minimum requirements and

qualifications.

External (attributes of

the environment)

Opportunities

Officially assurance of HALAL

certificate for those Muslim

customers to having meal in

PappaRich.

Combination of different culture

and foods with a slogan

“Malaysian Delight”.

Threats

Associated cost in developing

a new franchise according to

current economic situation.

Many similar or fierce

competitor restaurants are

grown extensible.



Opportunities

Real time meal ordering system

which is the chef from kitchen can

get the order list directly when

customers ordered it.

Foods or beverages being prepared

on the spot, thus it will provide a

special eating experience that

becomes a reason for customers to

continuously return for more.

different category of meal menu to

attracting customers such as

breakfast set, lunch set and others

Threats

Customers are able to clamp

down the company’s business

profit reduce due to there are a

lot of firms supplying the same

products.

A product for product

substitute can be said as

something that meets the same

need.



5.0 Market

5.1 Industry analysis

Food and beverage industry has grown extensively significantly in recent year; The field of

restaurant segment is growing increasingly at a healthy pace every year. The needs of low price

with food and coffee drinks relatively modest investment capital requirements, and low

overhead, lead to high profit margins in the food and beverage industry to fulfill customer’s

requirements.

5.2 Market targeting

Segmentation Categories Description Explanation

Geographic

Country MalaysiaPappaRich has many franchises

located in Malaysia. One of it is at Sri

Petaling, Kuala Lumpur Malaysia.

This location is in the business zone

which has the potential to attract

customers having food during lunch or

dinner times.

City Kuala Lumpur

Specific Location

No. 25&27,

Jalan

Radin,Bagus

Sri Petaling

Demographic Age 13 - 60 Sri Petaling is a place that has a lot of

food and beverage restaurant, where

visited by many customers with the

average age of 13-60 years old.

PappaRich has suitable leisure

environment for the young teenager

and adult to having foods, with

friend and family. Also, tourist can

have a break and enjoy the variety of

unique coffee that available in

PappaRich.

Gender Male, Female

Target Market

Local

customers,

Tourist

Generation Teenage, Adult



Psychographic

Personality Socialize

PappaRich’s staffs are sociable where

they can interact with customers

comfortably. This makes PappaRich

to become a nice restaurant and

environment to stay with. Besides

that, for the customers who like to

relax, they can having a coffee and

have a breakAttitude Relaxing

Lifestyle Outing

5.3 Marketing strategies

Product

Product which is an important element that needs to focus on for PappaRich because with a high

quality product can attract customers to buy and increase the company profit. PappaRich has

produces several types of good quality food and beverage such as offer the best choice of

excellent gourmet coffees to their customers. Besides that, PappaRich also focus their strategies

by providing good packaging and services such as creating a clean and comfortable environment

that fills a niche that satisfies their customers who are looking for a quick bite.

Price

Price is one of the factors can affect PappaRich in market positioning. PappaRich pricing

strategy will focus on providing high quality, healthy food that is quick and has a unique flair.

With cost-based pricing and sold at a reasonable price with wide variety of choices within

competitor in same industry. This allow PappaRich become customer's first choice to having

foods



Place

PappaRich has choose a strategy place which is business district to set up their franchise business

where have higher potential for customers to step in and it can provide convenience direct to

customer to having foods. For example, in Sri Petaling is a place located nearby uptown and

downtown.

Promotion

PappaRich has done a lot of promotions to attract more customers to consume in their restaurant

such as used the advertising sales promotion through use flyers to local business, bunting and

internet by creating a customer feedback pages on social networks to interacting with customers

which can make a good effect for them. Thus, it could increase their profit by completes the

propaganda work.

5.4 Marketing expenditure

The following table has shown the marketing expenditure of PappaRich during year 2009 to 2012:

Item Monthly Expenses (RM) Other Expenses (RM)

Signboard 3,500

Promotion

Flyers 70

Internet Advertisement 130

Bunting 150

Business Card 80

Box 300

Grand Opening 3,000

Total 730 6,500



5.5 Sales forecast

The following table illustrates the sale forecast of PappaRich.

Month Sales

January 50,000

February 50,500

March 51,000

April 51,500

May 52,000

June 52,500

July 53,000

August 53,500

September 54,000

October 54,500

November 55,000

December 55,500

Total 633,000



6.0 Competitors

A competitor is a company that provides services in the same industry or similar industry that

provides the same product or service. Having many competitors can reduce the prices of services

as the different companies will fight for the largest market share. It also forces the companies to

become more efficient in order to remain competitive on the market. (Business Dictionary, 2013)

The food industry has many competitions in Malaysia. The main competitors of Papparich are

OldTown White Coffee, Kluang Station.

6.1.0 Competitor 1: OldTown White Coffee

Old Town is a group that is engaged into the chain of café outlets. The company has more than

100 café outlets located in Malaysia. The group is also engaged into the manufacturing and sales

of coffee and other beverages. OldTown co-founders Mr. Goh Ching Mun and mr Tan Say Yap

made their first coffee blend 3 in 1 in 1999. Throughout the year the company has grown into the

food business. Additionally the company exported to different market such as Japan and China.

(OldTown, 2013)

6.1.1 Strength

International Market : OldTown White Coffee expanded their export market to

Singapore Japan, Taiwan , United States of America, Canada, Indonesia, Thailand ,

United Kingdom, Australia and China

Broad Activity: the group manufactures and export coffee mix, instant milk tea , instant

chocolate and roasted coffee powder.

Strategic Location: The Company has outlet in all states of Malaysia and at places

where the customers will easily reach such as Malls, close to workplaces and residential

areas.

Experience on the Food Industry: OldTown has more than 10 years of experience ,

which gives the company an advantage on other competitors.



Laureate: The Company has won many awards such as the Malaysia Franchise Awards

2012, the Asia Excellence Brand Award 2012 and the Malaysia most valuable brand.

OldTown has many other certifications such as the Halal and ISO 9001 certifications.

(OldTown 2013)

6.1.2 Weaknesses

Low Barrier to Entry: OldTown is vulnerable to new companies that keep emerging

from all over Malaysia. To be a competition for OldTown the company just has to be

selling food.

Expensive Price: Compared to other food chain, OldTown White Coffee has slightly

higher meal costs. That makes most of the customer who cannot afford purchasing their

meals at OldTown into other competitors.



6.2 Competitor 2 : Kluang Station

Kluang Station is the second main competitor of Papparich. The company serves Hainanese food

and local dishes. It also offers coffee. It has a very wide range of food to reach different

customers. The First outlet started in October 2005 at One Utama Shopping Centre. With seven

outlets in Malaysia, the company has still to grow in the food chain industry. The aim of the

company is to provide the old time food taste so that customer can experience their nostalgic

food ambiance again. (Kluang Station 2011)

6.2.1 Strength Original dishes: Kluang Station serves authentic meals cooked with recipes handed

down through generation to generations. It offers a unique taste that customer can only

find in Kluang Station.

Place to Growth: the company has started in the food chain business only recently,

which gives it an advantage to expand more and gain more market share.

6.2.2 Weaknesses Limited Number of Outlets: The Company has only 8 outlets for Malaysia.

Little Experience: Kluang Stations first outlet started in 2005, which gives little place

for competitiveness on the market.

Limited Market: the company operates in Malaysia only and has is centered only on the

production of food to consumers.



7.0 Operational Plan

PappaRich restaurant is offering Malaysian delights food, beverages, desserts, snacks, meals

steaming with high quality and optimum ingredients for keeping the standard taste of the meals.

For instance of the famous meals are bread toasts or baked, chicken meals, curry laksa, prawn

noodles, ice kacang, white coffee and others. These meals are severed as on the spot, coffee are

blended using the coffee-maker machine on the front drinks section scene, breads are baked

with tasty smell on the front breads section scene. They also keep open up the new menu for

the ever-changing of customers’ taste. Additionally, customers are having meals with the leisure

environment.

7.1 Production process

In-behind production process (kitchen operation):

Before starting the day of business operations, it is necessary to handle the supplementary of raw

materials by taking order for the raw materials. Next, restaurant manager is needed to check and



ensure the quantities are consistency with the orders. Lack of quantity of the orders will be

reported and reordered. Then, raw materials are being placed in the containers or refrigerator to

keep fresh. After that, cookers, drink-makers and waiters are needed to make prior preparation

for the raw materials for the ease-of-use cooking. Finally, the raw materials are ready to be used.

In-front production process (customer operation):

When customers entered the restaurant, waiters will present the restaurant menu as well as the

menu in the promotion time. Next, filling up the meal order lists by the customers and waiter will

come to take the meal order lists immediately for sending it to the kitchen. Then, customers are

waiting at the table within the short possible time. After that, customers are served with the

meals that ordered. Finally, customers are required to pay the bills on the counter.

7.2 Purchase Forecast

Month Purchases forecast Purchases forecast Purchases forecast



for year 1 (RM) for year 2 (RM) for year 3 (RM)

January 5,000 6,000 7,000

February 5,000 6,000 7,000

March 5,000 6,000 7,000

April 5,000 6,000 7,000

May 5,000 6,000 7,000

June 5,000 6,000 7,000

July 5,000 6,000 7,000

August 5,000 6,000 7,000

September 5,000 6,000 7,000

November 5,000 6,000 7,000

December 5,000 6,000 7,000



7.3 Machine and Equipment

Item Quantity (s) Price per unit (RM) Total Cost (RM)

Ice-blended machine 1 1,000 1,000

Coffee-maker machine 1 2,000 2,000

Microwave 1 1,500 1,500

Oven 1 3,000 3,000

Grill machine 1 1,500 1,500

Water cooler 1 500 500

Water heater 1 500 500

Computer (Touch-screen) 2 1,500 3,000

Receipt Printer 2 200 400

LCD TV 2 1,300 2,600

Toyota Hiace Van 1 30,000 30,000

Total 46,000



7.4 Furniture and fittingItem Quantity (s) Price per unit (RM) Total Cost (RM)

Large table 7 300 2,100

Small table 16 100 1,600

Chair 122 60 7,320

Air-conditioner 6 1,500 9,000

Plant 5 30 150

Total 20,170

7.5 Operational Layout Plan

Remarks:





7.6 Operation Budget

Item Fixed Assets (RM) Monthly Expenses (RM)

Machine and Equipment 46,000

Furniture and fitting 20,170

Material Requirement

(purchases forecast)

5,000

Utilities 3,000

Total 66,170 8,000



8.0 Human Resource Plan

There is always a human resource plan in a good business plan. To achieve the best result

possible. Where technologies, raw materials, suppliers are all in good state, it is still not enough

to build a bridge to the glory yet. Employees, workers are gathered and selected for the business

to suffice. There are plenty of people demanding to work in PappaRich due to its reliability,

well-known, infamous restaurant in the Malaysia. That is a reason why filtering the applicants

CVs is absolutely necessary.

One business is considered as successful if the performances of the employees are good.

Preparing the human resource plan will make sure that the employees are acquired with the

competencies, resources and skills which are required in order to achieve the restaurant’s goals.

8.1 Organisation chart

8.2 Manpower planningPosition Number of Staff

General Manager 1

Chef 3

Drink Maker 2

Waiter 5

Cashier 1


General Manager

Chef Drink Maker Waiter Cashier


8.3 Schedule of tasks and responsibilitiesPosition Main Task

General Manager To recruit and retention of employees as well as supervise

employees working.

To assign the task for all the employees.

Monitors the overall performance of the business and management.

Maintain a good relationship with customers.

Overcome the problem of customers’ feedbacks or complaints.

Ensure the amounts of the material preparations (food and

beverages) are consistent with the pre-order.

Chef Well-prepared with the ingredients before start-of business

operations.

Cooking with tasty and come out with nice appearance of food.

Come out with the new food and beverages series as well as

promotion set.

Maintain the sanitary practices in the restaurant.

Drink Maker Able to use the ice-blended and coffee maker machine with

proficient and quickly.

Brew the tea, coffee, milo and other type of beverages

Provides the cold-beverages or desserts with refreshing.

Provides steaming meals, toast, boiling eggs.

Waiter Present the menu and promotions to the customers.

Clean up the tables for serving the next customers.

Ensure the customers’ orders are being sent to the behind kitchen.

Assists with the chefs to prepare food materials.

Cashier Works on the cash register with proficient and quickly.

Collects customer cash or credit card payment.

Prints the receipts with the change (money) if possible.

Daily checks the money in the cash register are accurate and

sufficient for the change before start business operations.

Ensure the checkout clear and accurate.



8.4 Schedule of remuneration

Position No Monthly salary

(RM)

EPF contribution 13%

(RM)

SOCSO 2% (RM)

General Manager 1 5,000 650 100

Chef 3 9,000 1,170 180

Drink Maker 2 5,000 650 100

Waiter 5 7,500 975 150

Cashier 1 1,500 195 30

Total 12 28,000 3,640 560

8.5 Administrative budget

Details Fixed assets expenses

(RM)

Monthly expenses

(RM)

Other expenses

(RM)

Renovation 35,000

Salary 28,000

EPF 3,640

SOCSO 560

Stationeries 100

License Registration 150

Business Registration 50

Monthly Rental 5,000

Rental Deposit 8,000

Utilities Deposit 2,000

Total 35,000 37,300 10,200



9.0 Risk & ContingenciesRisk Action Plan

1) Economic downturn More cash are required to stand by or

backup. It can be conducted through regular

money savings on monthly.

More promotions and attractive advertising

can be released. For instance, promotions can

be provided by set value meals with drink

and small dessert.

2) Number of competitors increase Provides the gifts, discount, and membership

card for the customers who are loyalty.

Offers caring, attentive and truthful services

in order to let the customers feel happy and

satisfaction. For instance, it can offer a free

dessert or slice of cake when customer’s

birthday, father day, mother day and so on.

3) Run out of cash Formulate a strategic business plan and

concurrently apply the business loan from the

commercial bank. It is the business grant

through commercial banks for any business

expansion.

4) Key employees quit Rewards the key employees with the

benefits, incentives, salary increases.

In addition, it can provide the free travel by

twice per year. The purpose is let the

employees able to get relax and enjoyable

time from the busy working time.

5) Employees get hurt on the job Employees are required to be guided often

for ensuring the working procedures and

environment are in safety way.



If any employees get serious hurt on the job,

he/she must be sent to the hospital to get

remedy. Additionally, manager needs to

recruit the temporary worker to take place of

the employee who get hurt.



10.0 Financial Plan

10.1 Source of finance

RM

Equity - Cash 50,000

Loan From Bank 700,000

Total Source of Finance 750,000

10.2 Project Implementation CostRM RM

Fixed Assets Expenditure

Machine and Equipment 46,000

Furniture and Fitting 20,170

Renovation 35,000 101,170

Administrative expenditure

Salaries 28,000

EPF 3,640

SOCSO 560

Stationeries 100

Rental 5,000 37,300

Marketing Expenditure

Flyers 70


Bunting 150

Business Card 80

Box 300 730

Operation Expenditure

Material Requirement 5,000

Utilities 3,000 8,000

Other Expenses





Rental Deposit 8,000

Utilities Deposit 2,000

Signboard 3,500

Grand Opening 3,000 16,700

163,900

Add Contingency Cost 586,100



10.2 Pro forma income statement for year 1

RM RM

Income 633,000

Operation Expenditure

Material Requirement 60,000

Utilities 36,000 96,000

Marketing Expenditure

Flyers 350


Bunting 450

Business Card 240

Box 300 1,990

Administrative Expenditure

Salaries 336,000

EPF 43,680

SOCSO 6,720

Stationeries 1,200

Rental 60,000 447,600

Other Expenses



Signboard 3,500

Grand Opening 3,000

Interest on the loan 14,000 20,700

Assets

Renovation Depreciation 7,000

Machine and Equipment Depreciation 9,200

Furniture and Fitting Depreciation 4,034 20,234

Total Expenses 586,524

Net Profit 46,476



10.3 pro forma balance sheet

RM RM Equity (RM) RMFixed Asset Capital 50,000

Net Profit 46,47696,476

Renovation 35,000(-) Accumulated Depreciation 7,000 42,000

Liabilities

Machine & Equipment 46,000 Loan from bank700,00

0(-) Accumulated Depreciation 9,200 55,200

monthly installment 60,000

640,000

Furniture & Fitting 20,170(-) Accumulated Depreciation 4,034 24,204

Current Asset

Cash605,07

2Rental Deposit 8,000Utilities Deposit 2,000

Total 131,404736,47

6





12.0 Conclusion: Personal Reflection

12.1 Personal Reflection

Personal Development

Throughout the whole report assignment, the researcher has learned new and has acquired a

greater awareness on writing a business plan. The researcher has followed formal steps into

developing the company background of PappaRich. During which, the company history and how

the company started until its current states.

The researcher finds that Papparich is a good example of food chain in Malaysia for maintaining

a quality of service that most companies will lose after couple of years in theirs business life.

Business Development

The external Environment has also been studied by the researchers. Throughout this phase the

PEST analysis with PappaRich as Object has been conducted. In PEST, the fours factors that

define a company have been elaborated and analysis has been made on the founding.

Additionally, the researcher has learned about Porter's five forces, of which the researcher finds

to be a great business tool to know your company. In fact, the porter's five forces directly tackle

the company 5 main driving forces.

Upon completion of the External Analysis, the internal environment analysis was conducted by

one of the researchers. What has been learned during this phase was how a company had as

strengths and weaknesses. The researcher also made several plans to better understand how the

company really operates on operational, human resource and financial plan.

On the operational level, the researcher has learned how PappaRich provides its services and

how it operates. The researcher studied the functioning of the company from opening to closure.

Each and every action and processes undertaken by the employees and manager at a PappaRich

outlet have been scrutinized by the researchers. The deliverable from the study was represented

as flow charts and design of the outlet itself.



PappaRich foods chains are as strong as their staff; the human resource plan elaborated the

manpower needed to meet the business plan requirements. An organization chart was drawn

from this investigation. Also the schedule of PappaRich Tasks and responsibilities were

elaborated according to the new business plan.

Academic Development

This permitted the researcher to learn new terms and methodology applied into real life business.

Working in a group was also an advantage for the researcher for having to share the knowledge

and different opinions. Having to working in synergy with the group members was an innovative

way to compile and conduct this report for the enterprise module course. During the assignment

the assistance and guidance was provided by the module lecturer to ensure that the researcher

knowledge was applied according to the assignment requirements.

12.2 Personal Reflection

Enterprising Management is helps to build up a business area in different views and assessments.

In this assignment, it had been conducted with the business plan which was providing a

consultation service to improve the performance of PappaRich restaurant. The business plan is

being analysis and evaluation for growing up their business.


For individually, the new knowledge and skills for the business plan are acquired to study and

learning. For instance, the financial plan is able to analysis and evaluate in order to prudently

doing business. The amount of the current liability needed to be same as the current assets.

Internal and external environment analysis are to be further apply in the SWOT analysis which is

to define the strengths, weaknesses, opportunities and threats for the business future references.

Next, time management is significant important for doing the individual task. Each of the

sequences in the business content must be completed in the proper order way. It is due to each

sequences of the business plan contents are related to each other.

In group, I had been conducted a collaboration of the teamwork through well communications in

each other’s. We were helped each other during the assignment progress. Each of the group



members has its own ability and strengths to help the weaknesses of other group members. I

would brainstorm together if any group members encountered problems. Hence, it was a

motivation for pushing a good quality of business plan.


Business development involves the systematic understanding and critical evaluation in

developing innovative business. For instance, thinking of the potential risk in different aspects

with the critical evaluations of contingencies solutions to minimize the chances of risks.

Next, it helps us to develop the coherent lines of statement to provide the rationale of business

idea in the operations. For instance, the human resources which are the manpower needed to be

organized in optimal production process. It is included in the behind PappaRich kitchen

operations and in-front PappaRich kitchen operations. Furthermore, it is using appropriate

information and data to justify the business plan such as the fact of external and internal

environment analysis.

On the other hand, business development involves the understanding of requirements in business

activities. For instance, administrative budget, marketing expenditure, material requirement,

machine and equipment, furniture and fitting are needed to be evaluated for the understanding of

PappaRich restaurant needed.


New wisdoms, resources, skills are obtained during the business plan progress. For instance, it

should avoid the miscalculations and errors in the costs of operating in business by using the

skills of financial plan. Financial plan is skills of managing the cash flow through the analysis,

evaluation, study and assessment. Yet, it can be used for the assessment of potential profit sales.

New resources such as the marketing targeting and marketing strategies are evaluated for keep

the business in competitive and innovative. Hence, the attention of the customers will not easily

get faded out. Entrepreneurship of the business also can apply the resources to drive the business

forward and increase the sales up.



On the other hand, my enterprising management lecturer, Mr.Teh Koon Ching has been guided

and taught us to mature my business understanding through providing the new wisdoms, skills

that are not included in the study slides area as well as sharing the experiences of the business

model. By the way, these wisdoms and skills will guide me in the future.

In conclusion, this assignment has been educated me in different understanding of business area.

I am appreciate to learn it and will apply it as in any business area.

12.3 Individual Journal Reflection –


Work in a team is not as easy as people may think. Shout out like “Relax, the rest of your

teammates will make it up for you” or “Just give them reasons whenever they ask you to do the

tasks” often come out from those who are the ones that burden the team. Well even the author

sometimes thinks about those exact statements frankly speaking. Anyway without further ado the

author would like to illustrate what are the benefits that were gained during the assignment

period.

The author is lazy. This laziness is somehow out of control and hard to maintain. This is what

actually helps me in finishing this assignment. Some people are like to work under pressure, by

any means he or she has difficulty to solve the problems if the deadline is still afar. When it is

like one week or even 3 days to go before the submission then all the inspirations, motivations,

come all of a sudden. During this assignment period, it is not the first time that the author being

yelled at for being a lazy guy. This occasion happens over and over again in every group that

author comes in to. In fact now the author has been trying to eliminate this habit at the lowest

rate possible. From the good support of the teammates author surely will convert this awful habit

into something much more useful.


Business development carries many aspects to elevate the business skill that the author currently

is not having. As being assigned to take responsible in SWOT analysis has brought various

advantages. We all know this SWOT concept and how big its impact in the business plan. For



instance analyzing your strength is very important in order to compensate of something you have

in your weaknesses. While these two points come from the inside of the company, there are two

other aspects that come from the outside as well. Threats that brought by the competitors should

be taken positively, somehow if we can manage, we can convert the threat into our opportunity.

Of course there are some risks, some dos and don’ts. In the end it’s worth trying for big company

like PappaRich. As a matter of fact, author found that business development is pretty interactive;

trying new things is always interesting. It is sharpen the author mind. No one wants to study

stagnant subjects over and over again. That will make the guy a dull person.


When level 3 starts author has had a little bit of surprise. “Oh we have a subject that has BM

code next to its name.” The author underestimated the assignment that Enterprise Management

had to offer. He thought it was just like another level one assignment, simple and easy. The

author was wrong. The content of the assignment question was simple but finding the solutions

are not. After a good brainstorming on the early days the author had decided to take the SWOT

analysis and Human Resource Plan. It was not easy as the author is currently pursuing IT title,

which by any means doing a Business assignment is not as easy as it sounds. Fortunately living

in the 21st century brings a lot of goodness. Resources are available everywhere. Authors started

by doing researches, read some articles, consulted to the teammates as well as to the lecturer. Mr.

Teh Koon Ching has been an inspiring lecturer that was willing to share his knowledge to guide

us to the fullest. After all the efforts paid back the skills that were gained. I concluded that it is

very important to be savvy on business aspects even though you are an IT person.

Conclusion

Journal reflection or rather called as personal reflection elaborates how the assignment impacts

the process of author in learning activities. According to author perspective the assignment has

brought eloquent corollary in understanding what is happening in the business plan. In which by

any means a work that requires team’s effort in order to succeed. Communication is the key, we

shall not hesitate to ask any questions. Problems are shared among the whole group. One

problem for one member means a problem for everyone. By backing each other up, the author

now understand to tolerate each other weaknesses and help them up with the strengths we have.

Managing time skill is very much compulsory as everyone is handling quite a lot of assignments



at the moment. In the end the author would like to thank everyone in this group as well as the

lecturer for the greatest teamwork and solidarity that the author has experienced

12.4 Personal Reflections In this enterprising assignment, we have chosen the food and beverage industry as the research

area and we had carry out a business plan which need provide the consultation service for

Papparich restaurant to expand their business.

Personal development

In individually, I found out that communication and teamwork within the group member is very

important to achieve the objectives of this enterprising management assignment. Because this is

a project that need to do a lot of research and analysis in suggest field deeply and assigned work

with difference phase which need to associated with each other, so every group member have to

work together and communicate all the time to solve the problem and ensure that the flow of

completing this project can run smoothly.

In addition, personal time managing skill is very important for every group members and others

student because researchers have to handle few assignments during this period. Lastly, I was

very appreciating about the understanding and tolerance of the entire members that have put a lot

of effort for completion of the assignment.

Business development

Business development a subset of the area of business and commerce which need to

consist of several task and processes for implementing growth opportunities of business purpose.

Through business development of this assignment, it increases my knowledge about business

capabilities and insight towards business understanding. Through the tasks divided, I was in

charge few part of this assignment which is external environment analysis and market section. In

external environment analysis, PEST factor and Porter’s five forces methods to analysis the

business environment of Papparich restaurant. Moreover, market analysis is very important

section in this business plan because it analyses the current market situation to come out the

more detailed market targeting, strategies, expenditure and sale forecast information that can

influence business sales result. Lastly, through the research and analysis of this business

development, it allow me to understand that a deeply analysis is required and needed to run a

business, in order to reduce the risk of run the business.




For the academic development, through this enterprise management module, knowledge

were gained and I have learnt that is how to prepare a good business and more clearly about the

importance of business plan for a company in order to maintain the competitiveness of industry.

Meanwhile, enterprising management has taught and advised me to study in the field of business

especially managing a business is not easy, a lot of factors must consider and make the further

research and analysis to make the decision where can affect the key to success of a company.

Thus, in the process of prepare business plan, a contingency plan must prepared to overcome the

company likely to encounter risks.

Furthermore, I am much appreciated and thanks to our enterprising management lecturer,

Mr. Teh Koon Ching, who has been guided and taught me to increase my business knowledge

and provided new wisdoms by shared a lot of his enterprising, entrepreneurship knowledge and

experienced which won’t be study in academic area. In conclusion, this assignment has been

educated me the knowledge of business area deeply, and I will apply these knowledge and skills

in the future of business industry.



References

Papparich. 2005. About us. [online] Available at: http://www.papparich.com.my/aboutus.html

[Accessed: 10th May 2013].

BusinessDictionary.com. 2000. What is competitor? definition and meaning. [online] Available

at: http://www.businessdictionary.com/definition/competitor.html [Accessed: 22nd May 2013].

Elaine L 2012 . New age Kopitiams scenes from a kopitiams part 2 . [Online] Available at: http://www.theedgemalaysia.com/features/214466-new-age-kopitiams-scenes-from-a-kopitiam-part-2.html [Accessed: 25th May 2013]

OldTown. 2013 . Our Life. [online] Available at: http://www.oldtown.com.my/v1/ourlife.html [Accessed: 1st June 2013]

Kluang Station. 2011.About us [online] Available at: http://kluangstation.com.my/aboutUs.htm [Accessed: 4th June 2013]

Elaine, R., 2012. Market Segmentation and Positioning. [Online]

Available at: http://www.oup.com/uk/orc/bin/9780199290437/baines_ch06.pdf

[Accessed 3rd June 2013]

Hala Gov., 2011. Standar Malaysia. [Online]

Available at: http://www.halal.gov.my/v3/index.php/ms/garis-panduan/standard-malaysia

[Accessed 3rd June 2013]

Elaine, R., 2012. Market Segmentation and Positioning. [Online]

Available at: http://www.oup.com/uk/orc/bin/9780199290437/baines_ch06.pdf

[Accessed 5th June 2013]


http://www.oup.com/uk/orc/bin/9780199290437/baines_ch06.pdf

http://www.halal.gov.my/v3/index.php/ms/garis-panduan/standard-malaysia

http://www.oup.com/uk/orc/bin/9780199290437/baines_ch06.pdf

http://kluangstation.com.my/aboutUs.htm

http://www.oldtown.com.my/v1/ourlife.html

http://www.theedgemalaysia.com/features/214466-new-age-kopitiams-scenes-from-a-kopitiam-part-2.html

http://www.theedgemalaysia.com/features/214466-new-age-kopitiams-scenes-from-a-kopitiam-part-2.html

http://www.businessdictionary.com/definition/competitor.html

http://www.papparich.com.my/aboutus.html