Noblesse Proposal

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Noblesse World Corporation

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UNIVERSITI MALAYSIA SABAH

UW 00302 ASAS PEMBUDAYAAN KEUSAHAWANAN

GROUP 7 (SECTION 12)

LECTURER: EN.RIDZWAN

NOBLESSE WORLD CORPORATION BUSINESS PLAN


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Table of Contents

No Title Page

1 Executive Summary 3

2 Introduction 43 Company Background 5

4 Management Plan 7

5 Product / Service 8

6 Market and Competitor Analysis 10

7 Strategy and Implementation 12

8 Production/Operation Planning 17

9 Risk Management and Exit Strategy 19

10 Financial Plan 20

11 Appendix 23


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1.1 Executive Summary

Noblesse World Corporation always ensure that S.E.R (Satisfy, Enjoy and Relax)

tagline of the company always instill in the customer services and also among the

company members. At the same time, loyalty of the customer also increased

company profits. Besides, general manager of company also wants all of the staff

relax during completing their responsibility to avoid the staff stress during

completing their task responsibility. In a nutshell, Noblesse World Corporation not

only keeping good relationship with customer but also strengthens the relationship

among Noblesse World Corporation members.

Noblesse World Corporation is the company that provide a haunted house

service and selling souvenir. The special of the Noblesse World Corporation is the

innovation service that created by the department of the company. Moreover the

price of the Haunted House that had been used is the penetration of pricing where

all of the classes of consumer can bought the product. Furthermore, Noblesse World

Corporation also has other product besides Haunted house dervice with affordable

price to everyone. The most important is the shares of shareholders will growth

28.5%, from RM 50 per share become RM 70 per share. Beside increased the profit

of the company, the profit of the shareholders also concerned by the Noblesse

World Corporation. Increasing of the shareholders share will attract other investor to

invest in Noblesse World Corporation. With this opportunity, Noblesse Company can

expand the market into higher level.


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1.2 Introduction

Noblesse World Corporation involve in Fundamental of Entrepreneurial

Acculturation project that held in 2 May 2012 until 4 May 2012 that organized by

University Malaysia Sabah (UMS). With participating in this project, Noblesse World

Corporation can expand the company through this kind of events.

The mission in this project is to fulfilled the satisfaction of the customer in UMS

while get more customer in the market. To accomplish these goals, Noblesse World

Corporation makes an analysis to see the opportunity that company have during this

expo. The survey includes segmentation of the market based on 3 main factors:

demographic, psychographic and geographic.

Noblesse World Corporation also give souvenir to the customer. Since the major

of the customer in UMS was student, Noblesse World Corporation put a reasonable

price for the entire service. This will attract more students to get the company

service. Besides that, Noblesse World Corporation also give a special gifts to whom

that collects 5 type of different key chain (the souvenir). The promotion will only be

given during the expo that held around PPIB tutorials room in UMS.


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2.1 Company Background

NAME OF COMPANY NOBLESSE WORLD

TYPES OF COMPANY CORPORATION

TYPES OF COMPANY ORGANIZATION PARTNERSHIP

LOCATION University Malaysia Sabah, Kota Kinabalu

REGISTRATION DATE 2012

DATE START OPERATION 2 MAY 2012

STARTED CAPITAL RM 500.00

MAIN PRODUCT HAUNTED HOUSE AND SOUVENIR

Source: Noblesse World Corporation

Noblesse World Corporation is a partnership organization that has 13

shareholders (refer to appendix 1). In order to avoid conflict among the members,

partnership agreement was prepared as for references. In this agreement it stated that

all shareholders responsible on company losses and the profits of company will be

divided fairly based on amount of shares agreement that already agreed by all

shareholders. Appendix 2 shows the business card of Noblesse World Corporation.


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Mission

Fulfilled customer satisfaction with the quality service. Maximized the profits and minimizing the cost of product. Instill the sense of entrepreneurial among the company members beside

increased the quality of the business.

Operation of the company based on the 4P concept that consist of price, product,places and promotion.

Vision

Realize the company tagline-S.E.R (satisfy, enjoy and relax) with customer andalso with the members of the company.

Expand the company to higher levels. Promote a service that has a memorable scene.


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3.1 Management Plan

Management Team

The Noblesse management team consists of General Manager, Human Resource

Manager, Production Manager, Marketing Manager, Financial Manager and

Information Technology Manager (appendix 3). To be competitive in todays

economy, Noblesse World Corporation need the best people to create ideas and

execute them for the organization. Based on the mission and vision of the company,

the right employees are the most important resources to accomplish the mission.

To find qualified job applicants, Noblesse World Corporation use recruiting to

developing a pool of qualified job applicants. After the recruiting process, company

will collect the applicants resume to comparing the qualified job applicants based

on the suitable position for they qualification to be selected work in Noblesse World

Corporation. All the manager resume were attached in the appendix (refer to

appendix 4).

To realize the company objective, the general manager creating a positive

organizational culture through words and actions and monitoring the companys

business environments were stable.


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4.1 Product/ process/ service

4.1.1 The uniqueness of product

The business main activity is ghost house themed house service. The example of

ghost is included was Ju On, Reaper, Pochong and Hantu Raya. The ghost provided

a reasonable situation. For example,the ghost will have a scary face to instill fear to a

customer. Other than that, the ghost are also always change from time to time to

create a different persona. For example, the business has Ju On waiting at the front

door. Later on that place will be change with another ghost so that customer will feel

fear because they cannot guess when the ghost will come out. The products which is

the souvenir are also simple because customer will get a key chain that will have a

light feature. The companies also treat more friendly based on company tagline SER

(Satisfy, Enjoy and Relax) for keep good relationship between company and the

customers. Besides that, the companies also ensure the hygienic of the staff by

wearing clean and neat clothing to ensure that customers will be more confident to

buy the product.


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4.1.2 Competitive advantages

Each o f the bus in ess w i l l have compet i t ion . Wi th the compet i t ion

the market wil l be more careful and more creative to produce a product.

Therefore, this opportunity should be taken to compete on a level with other people.

With this competition, the company will provide or produce a better product to attract

customers. In a market, consumer is the controller where companies will produced

the product that demanding from customers. Important to company to know what

customers like and dislike because if the company provides products that are

not preferred by the customer, the customer will not buy the product. Companies also

need to improve the quality of the product in order to get more customers. The more

important is how company ensures the satisfaction of customers was fulfilled.


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5.1 Market and Competitor Analysis5.1.1 SWOT analysis

Noblesse World Corporation also concerned on SWOT analysis as an analysis of

certain factors in implementing the analysis of products from within and outside

views. There are four elements in SWOT analysis, strength, weaknesses,

opportunity and threats. Appendix 5 shows the SWOT analysis of Noblesse World

Corporation.

5.1.2 Competitor analysis

- Besides the SWOT analysis, Noblesse World Corporation also analysis thecompetitive analysis to help assess the competitive environment. Therefore,

identifying competitors weaknesses and strengths, particularly in terms of price is

very important to look at the effectiveness of the product on the

market.(Appendix 6)

Overview of environmental product- Overall, the competition is very low. Most companies selling different products. The strength of the competitive products

1) Marketing strategies such as promotional gifts will be given to customers who

purchased souvenir above RM 10

2) Noblesse Haunted house use own concepts with the latest innovations.


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3) Noblesse Haunted House only have 1 competitors.

4) All the Noblesse World Corporation products price affordable for all types of

customers such as students.

Competitors- Competitors are companies that sell products similar to products like the

company's products sell such as drinks and snacks. For example, Little A

Corporation selling drinks and ice cream products as primary products.

Barriers to entry in the market

Price competition in the ever-changing market. Innovation has always been chipping renewal from time to time of all

operator staffs.

Always competing with companies with advanced technology.


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6.1 Strategy and Implementation

To success in this business, Noblesse World Corporation take maximized the

profit and minimized the cost through marketing, sales and sales forecast strategy.

Appendix 9 shows that the segmentation market of the Noblesse World Corporation.

6.2 Marketing Strategy

6.2.1 Pricing Strategy

Penetration Pricing

Marketing department will penetrate the price with setting a low initial price onthe new products to appeal immediately to the mass market such as the

Noblesse Haunted House souvenir (Halloween Key-Chain), one of the new

products. The price is set for RM 2.00 per key-chain. This price was the medium

prices where all the customers can buy the product. Other than that, this

strategy can compete with other products by other competitor.

6.2.2 Promotion Strategy

Advertising


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Since the target market is students, staffs and visitors coming from outside,the pamphlet will be distributed before and during the last expo. This

pamphlet is one of the targeted tools to convey information about products

to customers. More pamphlets were distributed, the more customers that

can be attracted. This strategy is an efficient means for reaching large

number of customers.

Direct Selling

Direct selling is the two way flow of communication between a buyer andseller. This strategy is used to influence the customers purchase decision.

This strategy is believed to be able to get quick response from customers

because of the selecting team using two way flow of communication with the

customers.

Direct Marketing

This strategy covers many activities such as direct mail and telemarketingwhich create and exploit direct relationships with customers; it also includes

some forms of advertising, sales promotion and personal selling.

6.2.3 Distribution Patterns

Direct Channel

Direct channel is used because Noblesse World products are sold directly tocustomers without using intermediaries. It is cheaper for the company to

hold the products in own retail store as there are no intermediaries.

Noblesse World Customer


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6.3 Sales Strategies

I.Direct Selling Direct selling also known as door-to-door retailing which involving direct sales

of good and services to consumers through personal interactions and

demonstrations in their home or office.

Noblesse World Corporation uses this kind of strategy to sale the product. Noblesse World Corporation use direct selling when sale product in Hostel

such as Hostel AB, CD, E, and Indah Permai.

Besides, Noblesse World Corporation using direct selling to reach consumerwho prefer one-to-one customer service and social shopping experience

rather than big-store shopping or online.

II. Telemarketing Noblesse World Corporation using the telephone to interact with consumer

and sell directly to consumers.

This is because telemarketings are often viewed as a more efficient means oftargeting consumers.

III.Advertising Advertising is any paid form of non personal communication about an

organization, good, service, or idea by an identified sponsor.

Noblesse World Corporation use advertising to make sure consumer knowplace and product been made by Noblesse World Corporation.

Besides, advertising help Noblesse World Corporation announce about theproduct.


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Noblesse World Corporation using advertising product at lecture hall, hostel,and technology (social networks, telephone and ext).

However, advertising do not have an immediate feedback loop as doespersonal selling.

6.4 Sales Forecast

Noblesse World Corporation use sales forecast in order to estimate of thecompany revenue for a specified future period.

This is because forecasts play major roles in new-product decisions, productionscheduling, financial planning, inventory planning, procurement, distribution and

human resources.

Sales forecast are divided into two:(a) Qualitative forecasting(b) Quantitative forecasting

1. Qualitative forecastinga) Jury of executive opinion This techniques are combines and average the outlook of CEO such areasmarketing, finance, production and purchasing.

General Manager of Noblesse World Corporation will bring the followingcapabilities to the process: experience and knowledge about the situations that

influence sales, open-minded attitudes toward the future, and awareness of the

bases for their judgments.

Moreover, this faster and inexpensive method generates good forecasts forsales and new-product development of Noblesse World Corporation.

b) Sales Force Composite


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This technique will develops forecasts based on the belief that NoblesseWorld Corporation member closest to the marketplace.

It is related to one, whom has knowledge with company product, customer,and competitive knowledge also offer the best insights concerning short-term

future sales.

Sales forces composite are typically works from the bottom up.

2. Quantitative Forecastinga) Test markets Frequently helps Noblesse World Corporation asses consumer response to

new-

product that are selling by Noblesse World Corporation.

Noblesse World Corporation will begin by establishing one or more testmarkets to gauge consumer response to a new product under the actual

market place condition.

This will help Noblesse World Corporation permit experimenters toevaluate the effect of different prices, alternative promotional strategy

and other marketing mix variations by comparing results among different

test markets.

b) Trend analysis It is help Noblesse World Corporation develops forecast for future sales by

analyzing the historical relationship between sales and time.

Noblesse World Corporation assumes that the collective causes of the postsales will continue to exert similar influences in the future.

When historical data available, planners can quickly and inexpensivelycomplete trend analysis.


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6.5 Marketing Budget

The following show the cost used by marketing department of Noblesse World

Corporation in marketing budget.

ITEM COST

Printing advertisement RM 20

Paper use in advertising RM 30

Total RM 50


7.1 Production/Operation Planning7.1.1 Production methods

There are four types of production methods which are used by various types of

company based on what kind of product they are producing. These four production

methods are job method, batch method, flow method and group methods. As for

Noblesse World Corporation, company chooses to use batch method as company

process of production and material for it is quite the same.

7.1.2 Places that are targeted to market

The company strategic places to distribute products had shown as below:

University Malaysia Sabah

1. School Of Business and Economics (SBE) Students and lectures (targetedbuyers)

2. Lecture Hall - Students


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3. Hostel/ dorm - Students4. Staff in UMS

Location is the most important components when start the business. The

targeted buyers are students, lecturers and staffs in UMS. The targeted places to

sell souvenir and promote our haunted house are students hostel such as hostel AB,

hostel CD, hostel E hostel Indah Permai and also hostel King Fisher. Hostel is the

most targeted places because they are the places where students will be possible

are aside from lecture hall and library. Within that, company also can get more

buyers and gain more profit. Company also attracts more customers to buy

company products and at the same time, company also promoting products. As a

result, company can gain profit quickly and promote products more efficiently.

Appendix 10 shows the materials that needed to produce company product.

7.2 Suppliers

There are several suppliers which supply the resources to conduct company

operation. The main supplier for haunted house is from Kota Kinabalu that relatives

of one of company shareholders. While, other materials supply by Jimat mini market.

Therefore, company has the advantage to cut down the cost in terms of buying

product raw material especially crackers. Furthermore, company can get the lowest

price of all those raw materials of the product.

7.3 Operation


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After getting company resources from supplier, staffs of the company start working

on producing products. As all of company workers have all the skills required, thus,

all company staffs have own their responsibility in their department that lead by the

operation manager.

8.1 Risk management and exit strategy

Risk management

The risks are getting losses suffered as a product is not sold out. Example of the

situation where our souvenir cannot be sold out because there is less customer visiting

our haunted house and customers more interested inthe food compare to souvenir. In

addition, provided the product is not necessarily loved by everybody. Besides that,

weather also one of the risks that company must consider. This because of the location

of the haunted house is at PPIB building which is quite far from the bus stand;

customers preferred a nice weather to visit the haunted house. All of this will affect the

sales of company and make the profit in business will decrease.

To overcome this problem, company decide to sell the souvenir for short period

where only sell to customer start 9am till 5pm. This solution can solve the problem and

ensure that company fulfilled the consumers satisfaction. Otherwise, company will


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reduce the production of souvenir and focused more on haunted house service. With

this solution, it can reduce the losses of company.

9.1 Financial Plan

SOURCES OF DEFRAYAL

The sources of company defrayal is from the company members which is stated in

company organization, there is 10 members in the company and each member will

invest minimum of RM50.00. The decision of this amount of investment is made by

agreement of all members of the company.

TABLE OF FINANCIAL COST

ITEMS COST

GHOST PROPS COST PRICE : RM 50

NUMBER PURCHASE : 7 Units

TOTAL : RM 350

HAUNTED HOUSE PROPS COST PRICE : RM 100

TOTAL : RM 100


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TOTAL PURCHASES RM450.00

PRO-FORMA CASH FLOW STATEMENT

Cash flow for end of week

Cash flow from operation Activity RM RM

Cash receive from customer 750/days

Cash paid to supplier 450 (only for

once)

Cash paid to operation (135.00)

Net cash flow from operation activity 408.00

Cash flow from financial activity RM RM

Capital 500.00

Net cash flow from financial activity 500.00

Increase of Cash flow 908.00


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PRO- FORMA BALANCE SHEET

PRO-FORMA INCOME STATEMENT

RM RM RM

SALES

(-) COST OF GOOD SOLD

(+)PURCHASES

(-) ENDING INVENTORY

COST OF GOOD SOLD

GROSS PROFIT

(-) EXPENSES

TRANSPORTATION EXPENSES

PACKAGING EXPENSES

PREMISE EXPENSES

OTHER EXPENSES

TOTAL EXPENSES

NET PROFIT

450

(35)

50

45

30

10

800

(415)

385

(135)

250

Non-fixed assets RM RM

Cash 1415

Inventory 35

Total Assets 1450

Owner Equity

Capital 500

Net profit 950

Total Owner Equity 1450

Documents

Noblesse Proposal