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TABLE OF CONTENT
1.0 INTRODUCTION 2
1.1 Objective of the business project 2
1.2 Overview of the compan !
1.! "ac#$roun% of compan &
1.' "ac#$roun% of owner &
1.& (ro%uct an% service specia)ist *
2.0 +,-,/I,/ CONO+IC ,N,-/I/
2.1 In%ustr ,na)sis in +a)asia 10
!.0 3IN,NCI,- ,N,-/I/ 12
!.1 (rofit an% -oss 12
!.2 "a)ance /heet 1!
'.0 (/T- ,N,-/I/ 1'
'.1 (/T- ,na)sis for ,reatwo nterprise 1*
&.0 /4OT ,N,-/I/ 15
&.1 /4OT ,na)sis for ,reatwo nterprise 21
*.0 CONC-U/ION 22
.0 RCO++ND,TION 2'
5.0 R3RNC/ 2&
6.0 ,TT,C7+NT 2*
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1.0 INTRODUCTION
1.1 Objective of the business project
One of the requirements set by the Universiti Kuala Lumpur Business School in
completing its Master in Business Administration (ntrepreneurship! program is to do a
feasible study on an organi"ation o#ned by a Bumiputra entrepreneur and identify
problems faced by the organi"ation and recommend solutions to solve or overcome
these problems$
%n order to identify the problems faced by the entrepreneur& #e have to do some
analysis on the company's internal and eternal environment& such as the S)O*
analysis& +S*L analysis& ,ive +orter's analysis& ,inancial -atio analysis and other
analysis #hich #e thin. #ould be relevant to our study$
,rom the analysis& #e #ill have to identify the potential problems that cause the
organi"ation from epanding or gro#ing and later provide recommended solutions to the
organi"ation as a #hole$
% have chosen an advertising company for my Business +ro/ect #hich is located at Bu.it
Beruang& Mela.a$ My study begins #ith the overvie# of the company& bac.ground of the
company& Malaysia's economy analysis& the industry analysis& the company analysis
and the potential problems or issues$
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1.2 Overview of the compan
Areat#o Business nterprise #as registered on 01 May 0112 and is a sole proprietor
#ho is fully cultivated by 3atives$
Areat#o nterprise early inception of this company /ust act as suppliers or trading
house for the supply of souvenir items& clothing and equipment& stationery and furniture$
Among the huge success Areat#o nterprise in the supply company that has managed
to get three4year contract to supply *4shirt& baseball cap and bottom trac. to the
3ational Service *raining +rogram$
5o#ever the support and trust from the customers Areat#o nterprise business a step
ahead into manufacturing of advertising and design$ Almost ten years of eperience in
the company can promise the quality and competitiveness of products are good$
%n the product range of eternal and internal signboard& signboards electric shutters&
road safety signboards& sil.screen& banners& buntings& signage's and signboards street
name$
Based on eperience and business confidence contact this company can capture and
epand business activities if given the opportunity and support at this time and the
future$
Areat#o nterprise chooses to form this business because from the analysis that had
been made& the mar.et of this industry for the past three years is al#ays increased$ *his
business plan #as created to vie# and evaluate the proposed of this venture in an
ob/ective& critical and practical manner$ )ith this business plan& the management has a
solid and #ell grounded information to supplement the planning and decision ma.ing
process$ By using this business plan& the management #ill have more realistic andpractical plan$
Besides that& it #ill ma.e easier to analy"e and evaluate the viability of a proposed
venture$ %t can be used as a basis in determining the viability of a proposed business
venture$ %t also can convince relevant parties of the investment potential to invest in the
3
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pro/ect$ *he viability of business plan #ill boost the confident of interested parties to
finance partially or fully co"y of the venture$ %t include financial institutions& private or
individual investors& suppliers& government agencies etc$ furthermore& it can be as a
guideline in terms of managing the business because it #ill be an important benchmar.
to gauge the progress$ Other than that& it #ill help in terms of allocating the business
resources effectively to avoid unnecessary #astage and to ensure optimum returns on
investment$
*he product and services being offered based on responsibility to provide better service
of advertising #hich is attractive and satisfied the customer$ *he company mission is to
be leader in each of the mar.et they participate$ *o ma.e sure the business achieve the
target& they operate the business at 667 8 66740& 9alan Bu.it Mela.a 0:;& *aman Bu.it
Mela.a& Bu.it Beruang& 2
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1.! "ac#$roun% of compan
?ompany @ Areat#o nterprise
stablished @ 01 May 0112
O#ner @ n$ Ad"am bin 5ashim
5ead Office @ 667 8 66740& 9alan Bu.it Mela.a 0:;&
*aman Bu.it Mela.a&
Bu.it Beruang& 26 ;0 1211
,a 3umber @ >6 ;0
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1.& (ro%uct an% service specia)ist
Manufacturer of advertising displays& internal and eternal signage& light bo& signboard&
road sign& billboard& sil.screen& digital in.4/et printing& bunting& banner& home tech$
2.0 +,-,/I,/ CONO+IC ,N,-/I/
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Malaysia's economy rebounded considerably #ell from the 0112 Asian crisis #ithout
incurring in %nternational Monetary ,und loans and hence future debt$ conomic
forecasts are optimistic even though there #as a deceleration in the economy due to a
slo#do#n in the mar.et for information technology$ Also& macroeconomic numbers
remain stable and there is a strong confidence in the countryFs future performance$
*herefore& #e find Malaysia capable of revitali"ing its economy to become one of the
fe# strong economies in Southeast Asia$ *his can be attributed to its #ell sounded
financial and monetary policies as #ell as the confidence the Malaysian people and
surrounding country governments have in the Malaysian administration$ 3onetheless&
some policy changes have to be implemented to guarantee results& including@ changing
the echange rate system& diversifying its eport base& furthering financial and trade
deregulation and continuing to reform the financial and corporate sectors$
*he Malaysian economy remains surprisingly resilient$ %n third quarter >0& its Gross
Comestic +roduct (GC+! gro#th moderated to a still commendable $7& #hile construction contributed >$6$
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?onsumer confidence is still holding up and is epected to remain largely intact going
for#ard& as indicated by the results of Malaysian %nstitute conomic -esearchFs
?onsumer Sentiments Survey$ *he ?onsumer Sentiments %nde (?S%! ended the fourth
quarter marginally higher at 007$2 points& compared to 007$; points in the previous
quarter$ Of the three components that ma.e up the ?S%& ?urrent ,inancial +osition
gained 0$< points quarter over quarter #hile pected ,inancial +osition #as flat quarter
over quarter$ pected Availability of 9obs #as the only component that registered a
decline (4>$1 points!$ All three components remain above the neutral 0>>4point level$
Business conditions in the manufacturing sector& ho#ever& have deteriorated some#hat
and could deteriorate further& according to the results of the fourth quarter M%-
Business ?onditions Survey$ M%-Fs Business ?onditions %nde& #hich had bro.enthrough its 0>>4point gro#th4neutral threshold level in the third quarter to settle lo#er at
16$> points& fell further in the fourth quarter to register 1=$0 points$ Both the epected
local sales and epected eport sales sub4indices declined slightly in the fourth quarter$
Li.e#ise& the half4yearly ,MM4M%- Business ?onditions %nde settled lo#er at 77$1
points in the second half compared to 16$7 points previously$ *he ,MM4M%- B?%Fs
for#ard4loo.ing epected business conditions inde also settled lo#er at 0>0$0 points
(05>0@ 0>$ points!& an indication that manufacturers have become less confident in
their outloo.$
Of the four M%-Fs sectoral indices& only the -esidential +roperty %nde (-+%! came in
higher at 0=$7 points in the fourth quarter (;E>0@ 00;$6 points!& #hile the *ourism
Mar.et %nde (*M%! #as largely unchanged at 01$7 points (;E>0@ 01$1 points!$ *he
t#o remaining sectoral indices& the Automotive %ndustry %nde (A%%! and the -etail *rade
%nde (-*%!& came in significantly lo#er at 0>0@ 06>$>! and 1=$7 points
(;E>0@ 0;>$! respectively$ *he -*% is the only sectoral inde to have settled lo#er at
belo# the 0>>4point neutral level$
On account of the results of M%-Fs fourth quarter surveys& #e are .eeping to our full4
year >0 gro#th estimate at
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epect domestic demand to remain resilient and to continue pic.ing up the slac. of
#ea. eternal demand$ )e are .eeping to our >0; GC+ gro#th forecast 0=& #e epect it to register
#ithin the and 6$> per cent range
%nflationary pressures mean#hile remain benign in Malaysia$ ,or the 9anuary 4
3ovember >0& the ?+% increased 0$2 per cent #hen compared to the same period last
year$ )e are maintaining our inflation rate forecast for full4year >0 and >0; at 0$2
per cent and $< per cent respectively and the unemployment rate at the ;$> per cent for
both years$ ,or >0=& #e epect inflation and unemployment to register $< per cent
and ;$> per cent respectively$
*he services sector is no# targeted to spearhead economic gro#th over the net 0>
years$ And epectations are ambitious$ *he sector's contribution to gross domestic
product (GC+! is targeted to increase to 66$>& valued at -M=;2$6bil& from
7 #hen it #as valued at -M1>$>6 #as 2 and
7$ *ourism is no# Malaysia's main services eport earner$ %t is anencouraging trend& and suggests that the country is on course to meeting the target set
by policy planners$
A measure of the services sector's contribution to the economy can be obtained by
loo.ing at its share of eports$ %t is internationally the norm that services account for
about >H of total eports$
%n Malaysia& the figure for >>2 and >>7& at -M0>>$1bil and -M0>bil respectively&came up to 02H$ *his is not an insignificant achievement& but it does not qualify
Malaysia to ran. as one of the #orld's top eporters of services$
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According to the )orld *rade Organi"ation& eight developing countries are in its list of
the #orld's ;> largest eporters of services$ Malaysia #as ran.ed ;>th in >>7& and so
still has some #ay to go before it can be considered a ma/or eporter of services$
)here is gro#th li.ely to come fromI -ight no#& some 2H of the services sector share
of GC+ consists of services provided by the Government$ *he remainder is the tradable
services sector #hich has commercial and gro#th prospects$ *ourism& valued at
-Mbil& is no# our main services eport earner$ %t gre# by >7 because of an
increase in tourist arrivals$
Other sectors #ith prospects for gro#th are information and communications
technology& construction& %slamic financial services& education and training&
management services& medical tourism& logistics& and oil and gas services$ *he
contribution of these sub4sectors to eports remains modest$
2.1 In%ustr ,na)sis in +a)asia
*he Malaysia advertising industry is one of the most dynamic and active ones around
the region$ *he Advertising penditure or ACJ in Malaysia has been one of the
fastest gro#ing and #ith the good performance registered for the first 1 months of >0
despite the global economic slo#do#n& mar.et analysts have been upbeat about >0;&
hoping that the momentum #ill carry for#ard to net year$
5o#ever& the general sentiments among advertisers for >0; might be that it could be a
slo#er year as compared to >0$ *his is mainly due to the fact that there #ere certain
ma/or global events in >0 that caused the spi.e in ACJ not only in Malaysia but also
around the #orld$
According to 3ielsen Media& not including ACJ on the internet& 9uly sa# a gro#th of
6$;H year4on4year #hich #as significantly lo#er than 9une #here the gro#th #as at
7$H$ *his #as mainly due to the U,A uro >0 football tournament$ ,or the first 6
months of >0& ACJ increased by $6H as compared to the year before that totalled
to some -M6$0 billion$ *he largest percentage came from ne#spapers that covered
1#
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=>$=H #hile free4to4air television #as at 2$;H #hich #ere both lo#er than >00$
Mean#hile& all other media li.e +ay *& -adio& outdoor and maga"ines advertising sa#
healthy gro#th rates$ 9uly this year too had a good run as it #as #hen the London >0
Olympics #ere held for a month$ *hese figures #ere healthy and pro/ected a positive
outloo. for advertisers and the agencies ali.e although regions li.e urope and the
United States #ere reportedly facing financial crises throughout$
%t #as reported that certain agencies have performed etremely #ell in the Malaysia
#ith ACJ for the first 0> months of >0 breaching the -M1billion mar.$ *his #as a
good improvement for the same period last year #hen the ACJ #as registered at
-M7$62billion$
On this note& analysts are confident that this momentum #ill most li.ely continue to net
year and it #ould be interesting and surely eciting in the first quarter #ith festivities li.e
?hristmas& 3e# Dear and ?hinese 3e# Dear coming around$
*he main hurdle that >0; #ould bring about is that there #ill be no ma/or events
happening (unli.e >0 #ith uro and the Olympics! #hich means that there might not
be a boost come mid4year& #hich is usually the slo#er ACJ periods$
5ence& it is up to the local ministries and businesses to stimulate the mar.et #hich #ill
in turn affect ACJ$ *he outloo. for >0; #ill most li.ely be slo#er than >0 #ith a
more steady pace of ACJ throughout the year #ith minor spi.es during the festive
seasons$ >0= #ould surely be a better year #ith the )orld ?up >0= in Bra"il coming
around$
!.0 3IN,NCI,- ,N,-/I/
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Areat#o nterprise as at ;0 Cisember >00 (-efer attachment 0!
!.1 (rofit an% -oss
-evenue ;6&=60
(4! ?OGS 02=&7=>
Gross +rofit 072&60
(4! penses 0;2&;2
Net (rofit &08!5'
9ross (rofit +ar$in &1.*:
Net (rofit +ar$in 1!.60:
(rofit +ar$in Ratio
%t sho#s ho# much profit is earned from every -M0 sales that the company made$ %n
>00& the company's gross profit margin is H$ *he
results for the margin are considered to be good$
!.2 "a)ance /heet
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?urrent Assets 0;>&>6
?urrent Liabilities 01&;0
*otal Cebt 01&;0
*otal Assets 0;6&>==
Current Ratio 1.00*
Debt Ratio 6&.0&:
Current Ratio
One #ay to determine the liquidity position of the company is through the computation
of current ratio$ *he company's calculated ratio for >00 is 0$>>6$
?urrent ratio measures the etent to #hich the company's current liabilities are covered
by its current assets$ *he ratio for >00 #as a good one$ 5o#ever& the company's
current assets are sufficient to cover its current liabilities$ As such& the company's
liquidity position is good$
Debt Ratio
%t measures the percentage of funds provided by creditors$ Cebt ratio calculated for the
company for >00 is 1
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(/T- ana)sis& #hich is sometimes referred as (/T ana)sis is a concept in
mar.eting principles$ Moreover& this concept is used as a tool by companies the #orld
over to trac. the environment they're operating in or are planning to launch a ne#
pro/ect:product:service etc$
(/T- is a mnemonic #hich in its epanded form denotes + for +olitical& for
conomic& S for Social& * for *echnological& L for Legal and for nvironmental$ %t gives
a bird's eye vie# of the #hole environment from many different angles that one #ants to
chec. and .eep a trac. of #hile contemplating on a certain idea:plan$
Diagram 1
%t is very critical for one to understand the complete depth of each of the letters of the
(/T-$ %t is as belo#@
1. (o)itica); *hese factors determine the etent to #hich a government may
influence the economy or a certain industry$ ,or eample a government may
impose a ne# ta or duty due to #hich entire revenue generating structures of
organi"ations might change$ +olitical factors include ta policies& ,iscal policy&
trade tariffs etc$ that a government may levy around the fiscal year and it may
affect the business environment (economic environment! to a great etent$
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2. conomic; *hese factors are determinants of an economy's performance that
directly impacts a company and have resonating long term effects$ ,or eample
a rise in the inflation rate of any economy #ould affect the #ay companies' price
their products and services$ Adding to that& it #ould affect the purchasing po#er
of a consumer and change demand:supply models for that economy$ conomic
factors include inflation rate& interest rates& foreign echange rates& economic
gro#th patterns etc$ %t also accounts for the ,C% (foreign direct investment!
depending on certain specific industries #ho're undergoing this analysis$
3. /ocia); *hese factors scrutini"e the social environment of the mar.et& and gauge
determinants li.e cultural trends& demographics& population analytics etc$ An
eample for this can be buying trends for )estern countries li.e the US #here
there is high demand during the 5oliday season$
4. Techno)o$ica); *hese factors pertain to innovations in technology that may
affect the operations of the industry and the mar.et favorably or unfavorably$ *his
refers to automation& research and development and the amount of technological
a#areness that a mar.et possesses$
5. -e$a); *hese factors have both eternal and internal sides$ *here are certain
la#s that affect the business environment in a certain country #hile there are
certain policies that companies maintain for themselves$ Legal analysis ta.es into
account both of these angles and then charts out the strategies in light of these
legislations$ ,or eample& consumer la#s& safety standards& labor la#s etc$
6. nvironmenta); *hese factors include all those that influence or are determined
by the surrounding environment$ *his aspect of the +S*L is crucial for certain
industries particularly for eampletourism& farming& agriculture etc$ ,actors of a
business environmental analysisinclude but are not limited to climate& #eather&
geographical location& global changes in climate& environmental offsets etc$
4$1 PESTLE An%&'sis (or Are%t)o Enter*rise
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+olitical a) *o help ne# entrepreneurs get started& the Malaysian
Government provides various types of funding$ *hese funds&
available in the form of grants& loans and incentives are
available for various industrial sectors and enterprises$
Loans from Government ,inancial %nstitutions
Ban. 3egara Malaysia 3e# ntrepreneurs ,und
,inancial Schemes under Ministry of %nternational *rade and
%ndustry (M%*%! for SMs
Small and Medium %ndustries Cevelopment ?orporation
(SM%C?!
,ranchise %nvestment and ,inancing Schemes
MA-A Business ,inancing for Bumiputera (Bahasa version
only!
MA*-AC Mar.et Cevelopment ,und
Malaysian *echnology Cevelopment ?orporation (M*C?!
Cana +ro/e. Usaha#an Bumiputera dalam Bidang +eruncitan
(+-OS+-!
*he Government has also set up of the SM Ban. to assist
SMs in obtaining financial assistance$
conomic a! ?urrent economic situation stated above@
16
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Social
*he population of the #hole of this has an impact on all businesses in
Malaysia including Areat#o nterprise$
*echnology Mela.a has been selected as the precursor to the green technology
city to create a high quality and clean healthy environment$ Mela.a
has the characteristics of Lo# ?arbon ?ity ,rame#or. and
Assessment System (L??,! #hich is a system that supports all the
policies and initiatives in Sustainable Municipal ,rame#or.& including
the Green 3eighborhood Guidelines and the emphasis on upgrading
the quality of life$
Legal A great many common la# rulings& statutes& administrative rules and
legislation ma.e up the practice and interpretation of employment
la#$ %ts governance falls under the umbrella of both federal and state
statutes& as #ell as administrative regulation and /udicial precedent$
nvironment *his charming city is a U3S?O #orld heritage site& #ith a rich
trading history and multicultural heritage$ Mela.a is a re#arding to#n
to eplore and is about t#o hours from Kuala Lumpur$,irmly rooted as MalaysiaFs historical city& visiting Malacca is li.e a
/ourney bac. in time to #itness the adventures and discoveries
during MalaccaFs golden age$
&.0 /4OT ,N,-/I/
1
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Diagram 2
/4OT is an acronm for /tren$ths8 4ea#nesses8 Opportunities an% Threats $ By
definition& Strengths (S! and )ea.nesses ()! are considered to be internal factors over
#hich you have some measure of control$ Also& by definition& Opportunities (O! and
*hreats (*! are considered to be eternal factors over #hich you have essentially no
control$
/4OT ,na)sisis the most reno#ned tool for audit and analysis of the overall strategic
position of the business and its environment$ %ts .ey purpose is to identify the strategies
that #ill create a firm specific business model that #ill best align an organi"ation's
resources and capabilities to the requirements of the environment in #hich the firm
operates$ %n other #ords& it is the foundation for evaluating the internal potential and
limitations and the probable:li.ely opportunities and threats from the eternal
environment$ %t vie#s all positive and negative factors inside and outside the firm that
affect the success$ A consistent study of the environment in #hich the firm operates
helps in forecasting:predicting the changing trends and also helps in including them in
the decision4ma.ing process of the organi"ation$
An overvie# of the four factors (Strengths& )ea.nesses& Opportunities and *hreats! is
given belo#41!
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1. /tren$ths
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great opportunity for ne# firms to enter telecom sector and compete #ith eisting
firms for revenue$
4. Threats
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-elatively lo# operating epenses
and overhead
5igh quality of product and services
Good net#or.ing #ith government
and private agencies Good communication and
negotiation s.ill$
Being a player more than 0< years
,ocus on local net#or.ing and
establishing lin.ages #ith serviceproviders from other disciplines
Limited access to capital
Coes not provide any training for
staff
Lac. of mar.eting strategy
+roduction capacity constraint
Lac. of machine 8 technology
One man sho# for public relation
and mar.eting
O((ORTUNITI/ T7R,T/
?hange in economic& businessenvironment$
Government support for medium
scale business:Bumiputeraentrepreneurs
Good economic condition in
Malacca
*he increase in the governmentFs
financial allocation for theadvertising program
Malacca as much tourism
contributes to the advertising
%ncreasing number of competitors Slo# accept advertising technology
development
*.0 CONC-U/ION
*.1 (rob)em I%entification
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After ma.ing studies& surveys and research to this business& some ma/or
problems have been identified$ Some of these problems have been identified by
their o#ners& but there are also some #ho are identified through my o#n
observation and evaluation$ *he problems identified are as follo#s@ 4
1. 7uman Resource >%ifficu)t to $et a s#i))e% wor#er?
*#o categories of #or.ers needed by the Areat#o nterprise$ Graphic
designer #ho uses computer s.ills& and labor to do the rough #or. of
installation and so on$ ,or s.illed #or.ers using a computer is simple as
can get help from the Cepartment of Manpo#er$ Cifficulty is to get s.illed
#or.ers to #or. on4site installation #or.$ *o recruit is simple but very
difficult to obtain a s.illed #or.er$
2. (ro%uction >)ac# of machine an% new techno)o$?
Areat#o nterprise machine strapped and underdeveloped of the ne#
technologies$ As such& they restrict the production due to lac. of effort to
ma.e production in large quantities in a short period$ %ncrease in capital
through loans& grants& etc are epected to address the shortage of
machines$
Besides that this business is also seen slo#ly to adopt and implement ne#
technologies in the production of advertising$ Lac. of capital and epertise
in this field to be the primary cause of the deficit$ Business o#ners need to
be more li.ely to try something ne# even require some sacrifices in order
to enhance competition in the advertising field of endeavor$
!. +ar#etin$ >no proper strate$ies?
Mar.eting is important in every business$ *hat #ill determine the success
of mar.eting and revenue to a business$ )ea.nesses found in Areat#o
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Business Project 1 AREATWO ENTERPRISE
nterprise #hich is lac. of effective mar.eting strategies$ Mar.eting is
focused on eisting customers as #ell /ust give priority to government
agencies compared private$ Mar.eting strategy that implemented by
Areat#o nterprise is the old method that #ill al#ays bring big toll on life
epectancy of this business$ 5ence Areat#o nterprise should thin. and
ta.e appropriate action to overcome the mar.eting techniques currently
practiced$
'. /trate$ic +ana$ement >no proper motto8 vision8 corporate objective?
Areat#o nterprise since its inception and this does not have any motto&
vision& missions and corporate ob/ective are clear$ *o become a
successful business and compete on a broader level& this needs to be
fied and clearly stated in the beginning of a business establishment$
Areat#o nterprise hence has to start from the beginning again to fi all of
these things so clear goals and targets set out to convince customers$
.0 RCO++ND,TION
,rom all the problems mentioned above clearly Areat#o nterprise is facing
problems either clear or not clear$ 5alf of the problems discovered by the o#ner
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Business Project 1 AREATWO ENTERPRISE
and is also part of my observation and as a researcher$ *#o problems mentioned
earlier is a problem that is noticed by the business o#ner #hile the other t#o are
through my o#n observations$
Of the four problems& % #ill focus on in4depth and proposed solutions to the o#ner
of this business deal for the problems associated #ith production obstacles by
Areat#o nterprise$ *he solution is epected to help is through
recommendations to the company applying for any loan or grant resources that
could contribute to the increase in the capital including the proposed business
funding application from MA-A$
More thorough eplanation regarding the proposed settlement of problems of
production and constraints on ne# production technology to the enterprise #ill be
presented in more detail in the Business +ro/ect soon$
5.0 R3RNC/
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Business Project 1 AREATWO ENTERPRISE
$ ###$mindtools$com Strategy *ools
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