Arrowhead Chips

S.I.D.Z.A Enterprise

Introduction Company Name : SIDZA Enterprise

Address :No 2, Jalan Bunga Raya 7/1, Kawasan Perindustrian Seri Kembangan, 43300 Seri Kembangan, Selangor Darul Ehsan

Business Nature : Manufacturer and distributor

Factors in selecting the proposed business : To introduce new snacks in Malaysia

Future Prospects : To conquer the snacks market in Malaysia and produce variety of product using water chestnut as the main source

Purpose

To obtain loan RM 397, 257 from finance institute to start the business

Act as a guide to achieve vision and mission of our business

To convince suppliers to obtain raw materials for our product

Business BackgroundName:S.I.D.Z.A Enterprise

Address:No. 2, Jalan Raya 7/1, Kawasan Perindustrian Seri Kembangan 43300 Seri

KembanganForm of Business:Partnership

Main Activities:Produce water chestnut chipsDate of Registration:1st April 2014

Date of Commencement:1st January2015Number of Registration:JM1342603-X

Name of Bank:SME BANKAccount Number:7456901243678997

Partners BackgroundPartners Position Qualificatio

nExperience

Muhammad Zul-Hilmi Bin Mohamed Tahrim

General Manager

Master in Business Management, UM

• Manager at Levi’s Co•Oriented Restaurant at Kulai jaya, Johor

Nurul Adibah Binti Mokhtar Marketing Manager

Master in Business Marketing, UM

• Marketing Assistant in Maxis• Bookstore at Kuala Pilah, Negeri

Sembilan

Amar Safwan Bin Muhammad Ali Hanapiah

Operation Manager

Bachelor in Biology, USM

• Wedding Caterer

Salma Izati Binti Sinar Mashuri

Financial Manager

Bachelor in Finance and Accountancy (Hons), University

of Dublin

• Accounting Assistant at Seoul Garden• Accounting Assistant at H&M Co.

Iwani Binti Mahadi General Supervisor

Bachelor in Business Studies,

UPM

• Manager at Sushi KingBakery at Indonesia

 

Location Of Business

S.I.D.Z.A

Enterprise

Advantages •Located at the industrial park •Great infrastructure accessibility•Large population•Our premise is along side of the main road

Type Of Building Factory

Address No 2,Jalan Raya 7/1 Kawasan Perindustrian Seri kembangan,43300, Seri Kembangan, Selangor Darul Ehsan

Product Description Main ingredient is water

chestnut and mix with several ingredient (sugar, salt, food flavoring, food additive)

Four flavor (original, cheese, hot&spicy, tomato)

Packed in two different sizes (70g and 15g) and sold by boxes

Expiry date is about 1 year after manufactured

GMP & Halal certification

Mass per unit

Packet per box

Total mass per

box70g 40 packets 2.8kg15g 5 bags x 30

packets=150 packets

2.25kg

Target Market,Market Size and Competition

List Total

Population in Peninsular Malaysia

23,500,000 people

Estimated demand (per month)

For 70g : 40boxesFor 15g : 150boxes

Percentage Buyers 35%

Target Market 8,225,000 people

Market Share 10%

Market size RM 8,340,150.00

Sales Per Year RM 8,340,150.00

Brands Strength WeaknessChipster Commercial

More ExperienceStable Financial

Expensive

Mister Potato Hold Market SaleCommercialHave Loyal Customers

Expensive

Jack&Jill Potato Chips

CheapStable Financial

No Variety of ProductLow Advertisement

Our company’s strength and weakness:

Strength:•Cheaper•Unique•Easy to get

Weakness:•New brand•Less experience

Variable Description

Age 5-40 years oldGender Male and FemaleIncome Working adults : RM100 and above

Students :Rm40 and above

Consumers

Kids, Teenagers and Adults

Buyers Hypermarket and Independent Distributors

Occupation

Students and Working Adults

Region Peninsular Malaysia

Market Share and Sale Forecast

Janua

ry

Februa

ryMarc

hAp

ril May June July

Augu

st

Septem

ber

Octobe

r

Novem

ber

Decembe

r665,000.00670,000.00675,000.00680,000.00685,000.00690,000.00695,000.00700,000.00705,000.00710,000.00715,000.00

SALES FORECAST

SALES FOREC...

MONTH SALES FORECASTPERCENTAGED IN INCREASED AND

DECREASEDJanuary 695,012.50 0

February 695,012.50 0

March 701,962.63 1

April 708,912.75 2

May 701,962.63 1

June 701,962.63 1

July 688,062.38 -1

August 695,012.50 0

September

701,962.63 1

October 695,012.50 0

November

688,062.38 -1

December

681,112.25 -2

TOTAL (2016)

8,354,050.28 2

TOTAL (2017)

8,374,900.66 5

TOTAL (2018)

8,388,800.91 7

Marketing Strategy Product Pricing

use minimum modal

not too high mark up

affordable for all buyer

Flavour PackagingOriginal

Cheese

Hot & Spicy

Tomato

Marketing Strategy Place(distribution)

Manufacturer > Independent distributor > Consumer

Main target is to distribute product to the big wholesaler such as Tesco, Giant, Mydin, Jusco, Econsave, Carrefour and independent distributors.

Product will be distributed using two lorries.

Promotion

Printed and Broadcast Media

Billboards Shelf Competition

Marketing BudgetItem Monthly

(RM)Other (RM) Total (RM)

Brochures - 50 50Advertisement

s and Billboard

- 3000 3000

Business Card - 100 100Salary (+

EPF )3450 - 3450

TOTAL 3450 3150 6600

Process PlanningTransfer the water chestnut slice from

the store to the production area

Measure the salt, sugar, addictive

and food flavoring

Mix the ingredient and

the slice

Fry the chips

Rest the fried chips for a

minute

Ensure the chips is of

right quality

The chips is packed into 15g and 70g

The package are inspect before

being placed into boxes

The boxes are placed in the store before being distributed to

the market

The product is distribute

Lorry load raw material from

the port

The raw material is transport to

the factory

The raw material is

unload

Frozen water chestnut is store in the refrigerator, while other in the store

room

The temperature and quality is

controlled under suitable situation

Production Raw Material

Operation Layout

Production PlanningAmount (RM)

Average sales forecast per month 695 012.50Price per unit 70 g: rm1.30

15 g: rm0.60Number output per month 70g

RM 374,137.50/ RM 1.30=287,875 units per month=7,197 boxes per month15gRM 320,775 / RM 0.60=534,626 units per month=3,565 boxes per month

The amount of output to be produced per day (24 days)

70g287,875 units / 24 days=11,995 units per day=300 boxes per day15g534,625 units / 24 days=22,276 units per day=149 boxes per day

Material Planning & Machine and Equipment Planning

Item Price per unit

Number required

Total Cost (RM)

Frying Machine

15 000 1 15 000

Mixer Machine

10 000 4 40 000

Packaging Machine

15 000 2 26 000

Sealing Machine

20 000 2 40 000

Washer 5 000 1 5 000

Items Quantity Required

Safety Stock

Price per unit

Total Purchase (RM)

Water chestnut slice

30 450kg

550kg RM 3.10/kg

96 100

MSG 304.5kg

45.5kg RM 7.44/kg

2 604

Fine salt 609kg 41kg RM2.48/kg

1636.8

Fine sugar 304.5kg

45.5kg RM 2/kg

700

Flavouring powder

1522.5kg

37.5kg RM 9.30/kg

14 508

Plastic 75g 10967 packets

1033 packets

RM0.05/packet

600

Plastic 15g 16450 packets

1550 packets

RM0.03/kg

540

Oil 300kg 50kg RM2.95/kg

1032.5

Manpower Planning and Overhead Requirements

Position No Job Status

Remuneration Per Month (RM)

EPF (13%)

SOCSO (2%)

Total

Operational Manager

1 Permanent

5500 715 - 6215

Supervisor 1 Permanent

4000 520 - 4520

Assistant 2 Permanent

1200 156 24 2760

Worker 8 Permanent

800 104 16 7360

Total 20855Items Monthly Expenses (RM)Water 1 500Electricity 60 000Telephone and Internet 1 500Fire extinguisher 2 000Renovation 2 000Total 67 000

Operation Hours & License, Permits and Regulation Required

Business operation hours : 8am to 5pm

Business operation days : Monday to Sunday

Company registration from Business Unit of the Companies Commission of Malaysia

No-objection letter from Selangor State Government

Planning permission approved by City Council of Selangor

Approval for Building Plan by City Council of Selangor

Approval for Certificate of Fitness for Occupation

License for factory premise License for storage Approval for Safety and Health by

Department of Occupational Safety and Health

Sales tax license EPF and SOCSO registration for

employee Halal Certificate from JAKIM SME Bank Electricity permit from Tenaga

Nasional Berhad Water supply permit from Syarikat

Bekalan Air Selangor (SYABAS) Telephone line, fax and Unifi from

Telekom Malaysia

S.I.D.Z.A Enterprise

Operation BudgetItems Fixed

AssetMonthly Expenses

Other Expenses

Total

Fixed AssetsMachine and Equipment 126 000 5 000 - 131 000Monthly ExpensesRaw Materials - 13025 - 13025Salary, EPF and SOCSO - 20 855 - 20 855Operational Overhead - 67 000 - 67 000Other ExpensesDeposit for Utilities - - 5 000 5 000Business Registration and License

120 120

Insurance and Roadtax for Motor Vehicle

5000 5 000

Factory Renovation 10 000 - - 10 000Total 136 000 106

00010 000 252 000

Implementation Schedule

Activities

Mac

Apr May June July Aug Sept Oct Nov Dec

Incorporation of businessApplication for permits and license

Searching for business premise

Renovation of premise

Procurement of machine and raw material

Installation of machine

Requirement of labour

Organization Mission and Vision Mission Producing variety of product using water

chestnut as the main source To provide the best service to all

customer

Vision Conquer the snacks marketing in Asia. To make the people love the water

chestnut chips

Organization ChartGeneral Manager

Muhammad Zulhilmi

Marketing Manager

Nurul Adibah

Assistant(2 workers)

Operation Manager

Amar Safwan

SupervisorIwani

Production Worker

(8 workers)

Financial Manager

Salma Izati

Manpower PlanningPosition No Monthl

y Salary (RM)

EPF13%(RM)

SOCSO

2%(RM)

Total Amou

nt (RM)

General Manager

1 6220 808 - 7028

Marketing

Manager

1 5500 715 - 6215

FinancialManager

1 5500 715 - 6215

Operation

Manager

1 5500 715 - 6215

Supervisor

1 4000 520 - 4520

Position Task & Responsibilities

General Manager

-Making sure that organization is heading towards the goals.-Makes managerial decision making when problems occurs.-Responsible in monitoring the business.

Marketing Manager

-To increase demand of the product through various marketing instrument.-Oversee various environmental scanning and competitive intelligence processes to help identify trends

Financial Manager

-Responsible for the financial health of the organization.-Plans for the long-term financial goals of the organization

Operation Manager

-To control the process of production-Redesigning business operation in the production of the product-To ensure the product quality

Supervisor

-To make sure the motivation level of the workers are up to par-Act as human resources manager that involve in the recruitment of the organization workers

Assistant

Production Worker

-Direct workers of the organization-To transport the raw material into the machine-To operate the machine to produce and package the product

Office Equipment and Administration Budget

No Item Quantity

Price/Unit (RM)

Total Price (RM)

1 Desktop Computer

5 1000 5000

2 Printers 2 400 8003 Fax Machine 1 380 3804 Air

conditioner5 1088 5440

5 Photostat Machine

1 1500 1500

6 Telephone 5 85 425Total (RM) 13 545

No Item Quantity

Price/Unit (RM)

Total Price (RM)

1 Desk 5 550 2750

2 Chair 15 280 4200

3 Rack 5 450 22504 File

Cabinet5 280 1400

5 Whiteboard

5 90 450

Total (RM) 11050No Items Fixed

AssetsMonthly Expenses

Other Expenses Total

Land and Building 500 000 500 0001 Furniture and Fittings 11050 110502 Salary,EPF 30 193 301933 Business

License/Permit & Registration

300 300

5 Office Supplies 13545 135456 Stationary 500 5007 Telephone bill and

Internet1500 1500

Total (RM) 557 088

Project Implementation Cost

Sources Of Financing

Content RM

Own Contribution 500 000

Loan Bank (SME BANK) 397 257

Pro forma cash flow statement

Pro forma income statement

Pro forma balance sheet