project capsicum

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ENT300 CAPSICUM LAND TRADING UNIVERSITI TEKNOLOGI MARA (UiTM) SABAH ENT 300 FUNDEMENTAL OF ENTREPRENEURSHIP BUSINESS PLAN CAPSICUM LAND TRADING PREPARED BY: NOR AFIFAH BT YUSOF 2007141157 NAQUIAH NATASHA BTE NADZMIE 2007141169

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Page 1: PROJECT CAPSICUM

ENT300

CAPSICUM LAND TRADING

UNIVERSITI TEKNOLOGI MARA (UiTM)

SABAH

ENT 300

FUNDEMENTAL OF ENTREPRENEURSHIP

BUSINESS PLAN

CAPSICUM LAND TRADING

PREPARED BY:

NOR AFIFAH BT YUSOF 2007141157

NAQUIAH NATASHA BTE NADZMIE 2007141169

IZZAH BINTI RAYNIE 2007141167

DK NURAZERA BTE PG. ABDULLAH 2007141143

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CAPSICUM LAND TRADING

Capsicum Land Trading,

Kg. Cinta Mata,

P/S 140, 89308,

Ranau, Sabah.

SIR CYRIL CHRISTOPHER

Lecturer of Entrepreneurship,

Universiti Teknologi Mara,

Kampus Cawangan Sabah,

Beg Berkunci 71 88997,

Kota Kinabalu, Sabah.

Sir,

Submission of Business Plan for ENT 300

The above matter is referred

02. On behalf of my group, I am a General Manager of Capsicum Land Trading, I would like to

submit our business report on the actual date as planned.

03. We had put a lot of efforts and continuous commitment to complete this business plan. We as

a partnership member of Capsicum Land Trading would like to send our gratitude and

appreciation for all the helps us while completing this business plan. We hope this would be a

first step in for us to become a successful entrepreneur in the future.

04. We are looking forward that this business can be realize and we wish it may give thorough

information to those who are interested in this industry.

Thank you.

Yours sincerely,

______________________________

IZZAH BINTI RAYNIE

GENERAL MANAGER

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CAPSICUM LAND TRADING

ACKNWOLEDGEMENT

First of all, we are grateful to Allah, the most compassionate and Most Merciful as with

his we are able to produce this business plan. We had encountered various obstacles and

difficulties in preparing this proposal. Without the cooperation among member, we will never

manage to finish this proposal on time. Our special thanks to our families and friends that gave

us support for every single minute no matter in terms of emotional support, asset and financial

support.

We also would like to express our thanks to our lecturer of ENT 300, Sir Cyril

Christopher for his help and guidance in completed our business plan. His help and support given

to us had given us the courage and strength along the way in process making this business report

proposal into reality.

We believe that this business can go further in the future with the help of many people.

By implementing as an entrepreneur mind, we can see the opportunity in this business. With the

support and the consultation given, we manage to complete this business plan. We hope that by

doing this business plan we able to understand how do business work and we looking forward to

make this business become reality.

Cordially,

Capsicum Land Trading

Page 4: PROJECT CAPSICUM

ENT300

CAPSICUM LAND TRADING

Page 5: PROJECT CAPSICUM

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CAPSICUM LAND TRADING

INTRODUCTION

The name of our company is Capsicum Land Trading. Capsicum is one term of

vegetables that have a high demand recently. Capsicum is also known as bell pepper or

“Sabahan” people called it as “chili Benggala”. As we know that chili is one of the favorite

vegetables of Sabah people. Nowadays, these kinds of vegetables which is Capsicum have a high

demand from days to days until there is not enough supply to support the orders. When these

matters occurs our company Capsicum Land Trading would fulfill everyone needs and the

market demands that is being increasing.

Our target customers are people around Sabah and Brunei Darussalam. This is because

Sabah and Brunei Darussalam have a high number of demands of these kinds’ vegetables. In

addition, we also supply this Capsicum to Brunei Darussalam because this is our first step to

involve in the International business arena.

Our business operating in two location, which are at Kundasang as our administration

management and also for planting our vegetables and Tambunan as the place to plant the

Capsicum. We choose these places as our location because it was good in every aspect.

These businesses have a potential to being expanded. The future prospect of our business

is to increase second year sales by 5% and third year sales 8%. In viewing our business potential,

we believe that Capsicum productions have a high potential in business since the government

want to encourage business in agriculture sector.

Page 6: PROJECT CAPSICUM

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CAPSICUM LAND TRADING

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CAPSICUM LAND TRADING

PURPOSE OF BUSINESS PLAN

This business plan is prepared by Capsicum Land Trading. For the purpose of:

a) To fulfill the demand of capsicum in the market.

b) As a guideline in managing the business or the proposed venture.

c) To evaluate the ability of this business whether it is able to compete with other

competitors.

d) To add the numbers of the Bumiputera involvement as an entrepreneur for being involve

in this business.

e) To fulfill the requirements of the ETR 300 subject.

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CAPSICUM LAND TRADING

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CAPSICUM LAND TRADING

Background of Business

Name of business/company: CAPSICUM LAND TRADING

Address: Kg. Libang laut, po.box 174,89657 Tambunan, Sabah.

Kg. Cintamata po.box 140,89308 Kundasang Ranau, Sabah.

Telephone: 088-588089

Fax Number: 088-5890888

E-mail: [email protected]

Form of Business: Partnership

Main Activity: Provide and produce capsicum

Date of Commencement: 1 January 2010

Date of Registration: In Progress

Name of Bank: Bank Pertanian Malaysia

Bank Number: In progress

Initial Capital: RM 36,000.00

Bank Loan: RM 38665.00

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CAPSICUM LAND TRADING

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CAPSICUM LAND TRADING

Background of Partner

Partner 1 (General Manager)

Name of Partner: Izzah Binti Raynie

Identity Card Number: 891219-12-5214

Permanent Address: B29-16, Lorong 10, Taman Indah Permai,88858 Kota Kinabalu, Sabah.

Correspondence Address: Same As above.

Telephone Number: 014 9552204

Date of Birth: 19 December 1989

Age: 21 years old

Martial Status: Single

Academic Qualification: SPM

Courses Attended: Diploma in Business Studies UiTM

Skills: Know how to plan capsicum and manage farm.

Experience: Helping father manage farm and assistant manager hotel Promenade, KK.

Present Occupation: Full-Time Student.

Equity Contribution: RM 10,000

Asset Contribution: Existing farm, tools.

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CAPSICUM LAND TRADING

Current Job Position: General Manager and operation manager.

Partner 2 (Administration Manager)

Name of Partner: Dk. Nur Azera Bte Pg. Abdullah.

Identity Card Number: 891206-12-5880

Permanent Address: Wakiki Condominium, No.5, 3rd Floor, 88100 Tanjung Aru,

Sabah.

Correspondence Address: Same As above.

Telephone Number: 014 9550525

Date of Birth: 6 December 1989

Age: 21 years old

Martial Status: Single

Academic Qualification: SPM

Courses Attended: Diploma in Business Studies UiTM

Skills: Management skills and Computer skills.

Experience: Supervisor at Survey Hypermall KK.

Present Occupation: Full-Time Student.

Equity Contribution: RM 10,000

Asset Contribution: Laptop, Fertilizer.

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CAPSICUM LAND TRADING

Current Job Position: Administrative Manager.

Partner 3 (Marketing Manager)

Name of Partner: Nor Afifah Bt Yusof

Identity Card Number: 890928-12-6186

Permanent Address: Kg.Libang laut,Po.Box 174, 89657 Tambunan Sabah.

Correspondence Address: Same As above.

Telephone Number: 016-8319942

Date of Birth: 28 September 1989

Age: 21 years old

Martial Status: Single

Academic Qualification: SPM

Courses Attended: Diploma in Business Studies UiTM

Skills: Communication skills, Computer literate, Marketing Skills.

Experience: Salesperson at Avon.

Present Occupation: Full-Time Student.

Equity Contribution: RM 8000

Asset Contribution: Land, Lorry, Laptop.

Current Job Position: Marketing Manager.

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Partner 4 (Financial Manager)

Name of Partner: Naquiah Natasha Binti Nadzmie.

Identity Card Number: 890503-12-5452

Permanent Address: Kg.Cinta mata Po.Box,89308 Kundasang Ranau,Sabah.

Correspondence Address: Same As above.

Telephone Number: 014-8759515

Date of Birth: 3 May 1989

Age: 21 years old

Martial Status: Single

Academic Qualification: SPM

Courses Attended: Diploma in Accountancy UiTM

Skills: Financing an account and Investment.

Experience: Preparing a financial report for a family business and financial assistant at Surveys.

Present Occupation: Full-Time Student.

Equity Contribution: RM 5000

Asset Contribution: Land, Laptop.

Current Job Position: Financial Manager.

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Contribution By partners.

Assets & Money

No Item Quantity Cost per

unit(Rm)

Total

Assets

(RM)

Contributed by

01 Laptop

Planting tools.

(scoop, shovel,

glove, scissors,

knife)

Money

1 unit

1 unit

each.

1900.00

2000.00

13,000

3900.00

Izzah Binti Raynie

02 Laptop

Land

Lorry (second

hand)

Money

1 unit 2000

10,000

50,000

5,000

62,000 Nor Afifah Bt Yusof

03. Laptop

Land

Office department

Money

1 unit 2000

12,000

9,800

5,000

23,800 Naquiah Natasha Bte

Nadzmie

04. Laptop

Fertilizer

Money

1 unit 2000

3000

13,000

5000 Dk NurAzera Bte Pg

Abdullah

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Partnership Terms Agreement.

The Partnership Agreement was made on 4 August 2010. The Partnership Agreement is

based on the Partnership Agreement Act (1965) and the moment of understanding stated that the

entire member had agreed on the term of this Partnership Agreement Act.

This agreement bounds the parties mentioned below:

NAME I/C NUMBER

NORAFIFAH BT YUSOF 890928-12-6186

DK.NURAZERA BTE PG.ABDULLAH 891206-12-5880

NAQUIAH NATASHA BINTI NADZMIE 890503-12-5452

IZZAH BINTI RAYNIE 891219-12-5214

During this agreement was made it was witnessed by Mr.Cyril Christopher@ Supain who

had signed and agreed regarding to this Business Plan.

Agreement Condition:

1) Partnership Name

All partners were agreed to name the business as “ CAPSICUM LAND TRADING”

2) Date of business to be start

All partners are agreed to start the business on 1 January 2011.

3) Nature of business

The nature of business that will be operated is production of Capsicum Land Trading.

4) Capital Contribution

Capital contribution for each partners are based on ratio of 25%, 25%, 25%,25%. Table

below show the amount of contribution for each partner.

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NAME CONTRIBUTION

NORAFIFAH BT YUSOF RM 5000.00

DK.NURAZERA BTE PG.ABDULLAH RM 13,000.00

NAQUIAH NATASHA BINTI NADZMIE RM 5000.00

IZZAH BINTI RAYNIE RM 13,000.00

5) Profit and loss sharing ratio.

All members were agreed to share the profit or loss base on the capital contribution ratio.

6) Interest on capital.

The interest on capital will be fixed at 5% for each partner.

7) Partners’ salaries

All partner agreed to accept the salaries base on capital contribution ratio.

8) Additional capital

If partner have an intention to contribute an additional capital, the partner must inform

other partners so that the agreement between partners can be made.

9) The Gratuity of partnership and employees.

The Gratuity given to the partnership and employee is based on the business profit.

10) Goodwill

Goodwill will be given upon admission, retirement or death of a partner. The method of

valuating the goodwill is based on Super-Profit Method.

11) Dissolution of partnership

A partnership is automatically dissolved upon the death or legal disability of a partner

due to factors such as lunacy or bankruptcy.

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Any problems or important agreement that had not been stated in this agreement will be referred

to the act (Partnership Act 1961). The agreement will be studied and reviewed should any matter

occur during these 5 years started from 4 August 2010.

FIRST PARTNER SECOND PARTNER

__________________________ __________________________

Authorized Signature Authorized Signature

__________________________ __________________________

IZZAH BINTI RAYNIE NORAFIFAH BT YUSOF

(General Manager) (Marketing Manager)

THIRD PARTNER FOURTH PARTNER

__________________________ __________________________

Authorized Signature Authorized Signature

_________________________ __________________________

IZZAH BINTI RAYNIE DK.NURAZERA BTE PG.ABDULLAH

(Operation manager) (Administration manager)

FIFTH PARTNER ARBITRATOR WITNESS

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CAPSICUM LAND TRADING

__________________________ __________________________

Authorized Signature Authorized Signature

__________________________ __________________________

NAQUIAH NATASHA BINTI NADZMIE MR. CYRIL@SUPAIN

(Financial Manager) (UiTM Lecturer)

Page 20: PROJECT CAPSICUM

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CAPSICUM LAND TRADING

LOCATION OF PROJECT

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CAPSICUM LAND TRADING

Capsicum Land Trading is located in Cinta Mata, Kundasang Ranau and Kolombuang,

Tambunan. The main business progress is at Cinta Mata, Kundasang Ranau. While the

administration process located at Kolombuang Tambunan. The location that we had decided is

compatible with the plantation of the capsicum. Moreover, the land that had been contributed by

partnership is located at Kundasang Ranau.

Other factor of why we choose Kundasang Ranau is, the place is cold in the morning and yet not

too hot during daytime, beside that Kundasang is well known about the plantation of vegetables

in Sabah. We also discovered that the competitive of capsicum plants in that area is low. That is

mean; we had the chance to start the capsicum land trading.

\ To Ranau To Pekan Tambunan

to Kg Kumawanan

Capsicum Trading

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CAPSICUM LAND TRADING

To KK to Ranau

Kundasang

Cinta Mata

Capsicum Land

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CAPSICUM LAND TRADING

Introduction

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Any business organization may require an administrative executive as it is a great importance

role in order to ensure the efficiency and success of a business. The management of an

organization will be managed by persons they will be organized properly in order to ensure each

of them have their own task to do. Besides that, if the organization is organized properly, the

clients will be able to loyal to the organization.

To achieve company goals, the effective way is to develop a proper planning in the business.

This is one of the one of the administrative manager responsibilities. This can avoid the wastage

of using the resources. So that, by using resources wisely, this can save company budget and at

the same time the business can run smoothly.

Beside that, the administration manager also will in charge all the employee salary. Then, all the

employee benefit will keep in save and will be record. Besides, the administrative manager will

provide training and development to the staff. This is to let the staff be more precisely in doing

their work.

There are many important elements that comprises in an administration plan are an organization

chart, administrative budget, expenses and so forth. In fact, a good administration will be able to

ensure that the business management is in a good condition by properly organizing and

conducting the organization activities in order to achieve the company goals in term of vision,

mission and the objective in an organization. Thus, it is very important to consult disciplinary

and gain full cooperation among the staff.

Administration Structure GENERAL MANAGER

Izzah Binti Raynie

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CAPSICUM LAND TRADING

ADMINISTRATION MANAGER

Dk. NurAzera Bte Pg.Abdullah

Clerk Security guard

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Company vision, Mission and Objective

COMPANY VISION

The vision is the long term goal of our business. It is often stated in terms of a value statement

announcing where the business wants to go or what it aspires to be. Realizing the important of

this, we have agreed about our company vision as follows:

COMPANY MISSION

A mission is a statement of purpose or the reason for existence of our company in this

agricultures industry. It establishes the identity of the business and what it is does. It defines

long-term goals of the company but in a specific period.

Below is our company mission:

COMPANY OBJECTIVE

To become the largest supplier in Malaysia that supplies the

capsicum to the international level of business.

1) To promote agriculture sector

2) To give the job opportunities to local people.

3) To expand the market of capsicum.

4) To full utilize resources of capsicum in sabah

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Business goals or objectives support the achievement of a business mission and vision. They are

more specific, stated in a shorter term and have definite time frame. Our business objectives are

specific, measurable, achievable, and realistic.

Company Name and Logo

LOGO

To supply the capsicum in a good quality to customer.To satisfied the customer requirements of capsicum.

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CAPSICUM LAND TRADING

Background of the mount Kinabalu represents Sabah land below the wind. White represents

commitment and determination of Capsicum Land Trading members in fulfilling and satisfying

the best services and good quality product. Green shows that Capsicum Land Trading is

promoting the agricultural sector in Sabah. The Capsicum in the middle of the logo shows that it

is the product that we are going to sell and supply.

COMPANY’S NAME

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Capsicum Land Trading

Business Location

BUSINESS ADDRESS

Our business address will be at:

Kg. Libang laut, po.box 174,89657 Tambunan, Sabah.

Kg. Cintamata po.box 140,89308 Kundasang Ranau, Sabah.

Company’s Organization Chart

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An organization chart will show how the business is structure according to the departments

and/or positions in the company. It allows one to see how the lines of authority and responsibility

flow through the organization.

Therefore, realizing the important of company organization chart, we had prepared the company

organization that is design based on function.

ADMINISTRATION PERSONNEL

GENERAL MANAGER

Izzah Binti Raynie

ADMINISTRATION MANAGER

Dk. NurAzera Bte Pg.Abdullah

MARKETING MANAGER

Nor Afifah Bt Yusof

OPERATION MANAGER

Izzah Binti Raynie

Financial Manager

Naquiah Natasha Bte Nadzmie

clerk

Farm worker

Factory worker

Worker 1 Worker 2 Worker 3 Worker 4 Worker 5 Worker 6

Worker 1

Security guard

Accountant clerk

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NO. POSITION NO. OF PERSONNEL

1 General manager 1

2 Administrative manager 1

3 Marketing manager 1

4 Financial manager 1

5 Operation manager 1

6 Accountant 1

7 Marketing executive 1

8 General clerk 1

9 Accountant clerk 1

10 Supervisor 4

11 Security guard 2

12 Driver 2

13 Farm worker 6

14 Factory worker 2

Table 1

Schedules of Task and Responsibilities

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NO. POSITION TASK

01. General Manager - Involved in all business activity

- To lead overall the business operation,

marketing, operation and financial.

- To be responsible in ensuring all activities are in

line with business plan.

02. Administration

Manager

- To manage administration and operation

Department efficiently.

- Make relation with department of agriculture

centre, for new information in management

techniques.

03. Operation Manager - To manage administration and operation

department efficiently

- To manage administration and operation

expenses

04. Marketing Manager - To be responsible in promote the product.

- Finding the opportunities to enlarge the

customers to use organization products.

- Handling the customer needs.

05. Financial Officer - Responsible in handling of company’s financial

accounting

- To supervise company’s expenditure and

income

JOB DESCRIPTIONS

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Although there are outlines regarding the task and responsibilities of each partner pf our

business venture, every one of us still have to perform operating job in our farm.

NO. POSITION JOB DESCRIPTION

01. General Manager Planning, organizing, leading, directing and

coordinating the whole administration company.

Establishes organization policy to ensure the

efficiency and effectiveness of the business.

Solve any problem that occurs within the

company.

Motivate the workers to achieve the company

goals and to maintain the company’s name.

Act as the representative of the organization.

Responsible in ensuring all activities are in line

with business plan.

Help to perform operating job in Capsicum

Land.

02. Administration

Manager

Accountable in providing smooth clerical work

in organization.

Conducting and organizing the organization

activities in order to achieve the business goals.

To provide conducive office environment with

complete facilities and good office layout for

working environment.

Responsible to provide on going training and

development to the employees about the latest

technology.

Provide monthly report to General Manager.

Responsible to keep all the document of the

company in safety and good condition.

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Make sure all the personnel in the company will

manage their role effectively.

Responsible for the personnel benefits and

condition.

Help to perform operating job in Capsicum Land.

03. Operational

Manager

Ensure the operational activities are in high

quality and meet the customer needs and

satisfaction.

Ensure the implementation of daily business

operation.

Operation equipment properly.

Prepare stock inventories and provide sales

procedures.

Prepare operational activities report.

Monitor the output and output.

Identify the suppliers that can offer the product in

the suitable and best price.

Help to perform operating job in Capsicum Land.

04. Financial Manager Handling the company’s financial accounting

Supervise the company’s expenditure and

income

Supervise the business finance effectively and

trustworthy.

Monitor performance of the business cash flow.

To make sure all business transaction writes

down in the record book.

Prepare the business financial statement.

Manage partnership bank account.

Responsible in every expenditure or money

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received.

Prepare monthly report to General Manager.

Help to perform operating job in Capsicum Land.

05. Marketing Assistant Help the Marketing Manager.

Develop media packs and giveaways for trade

shows and conferences.

Update company news and headlines in the

corporate website.

Assist in the development of promotional

strategies and product development.

Company newsletters; prepare press releases and

event announcement.

Prepare monthly report to the marketing

manager.

06. Clerk Make and confirm appointment as directed and

receives and schedule visitor.

Organize and maintain files of record and

correspondence of both routine and confidential

nature.

Enter and update data including name and

address changes and property location.

Type bills for copies.

07. Farm Workers Perform their duties such as harrowing,

cultivating, fertilizing, irrigating and harvesting

farm crops.

Prepare insecticide solutions and operates spray

equipment.

08. Driver Deliver all order in specify time.

Help in maintenance of lorry and equipment.

Follow all the safety regulations and precautions.

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Report any maintenance problems to mechanic.

Checking and determine the correct customer

numbers.

Deliver order in a professional manner.

Drives vehicles in a safe manner at all time,

always wearing safety belt.

Keep vehicles clean inside and out.

09. Factory worker To ensure the safety of factory at night (security

guard)

Measure the weight of the capsicum for

packaging.

Package the capsicum in a good condition.

Do any extra works in any section.

Be replacement worker in any section.

Table 2

SCHEDULE OF REMUNERATION

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No. Position No. of

worker

Monthly

salary

(RM)

EPF Contribution

(12%)

(RM)

SOCSO

(2.5%)

(RM)

Net Salary

Per month

(RM)

01. General

Manager

1 1,200.00 144.00 30.00 1,374.00

02. Administration

Manager

1 1,000.00 120.00 25.00 1,145.00

03. Operational

Manager

1 1,000.00 120.00 25.00 1,145.00

04. Financial

Manager

1 1,000.00 120.00 25.00 1,145.00

05. Marketing

Assistant

1 750.00 90.00 18.75 858.75

06. Clerk 1 450.00 54.00 11.25 515.25

07. Farm worker 6 400.00 48.00 10.00 2,748.00

08. Driver 2 400.00 48.00 10.00 916.00

09. Factory worker 2 350.00 42.00 8.75 801.50

TOTAL 16 6,550.00 786.00 163.75 10,648.50

Table 3

Total Net salary per month = RM 10,649.00

Total EPF per month = RM 786.00

Total SOCSO per month = RM 164.00

Employees Intensive Scheme

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Workers Incentive Scheme

Workers are an important factor in order to ensure the effectiveness and the efficiency in

fulfilling the objective and goal of a business. Therefore, it has been decided by the management

to come up with a reasonable scheme for the employees so it will encourage them to carry out

their work with high responsibility, thereby, increasing the company’s productivity and

efficiency.

Working Days 6 days per week.

Medical Leave To the limit of 15 days per annum (depending on the

circumstances) and provided it is an approved sick leave.

Salary The salary will be given monthly. The salary of the workers is

depending on their task and the responsibilities.

Bonus Bonus will be given if the business is profitable. The bonus

amount will be recorded in the business accounting period and the

amount given is one month salary.

EPF EPF will be pay by the contribution 8% by the employees and

12% by the employer.

SOCSO 2.5% will be saved per month for each employee.

Insurance Insurance is also included for the safety of the workers.

Working Hours The working hours are from 7.30am to 5.30pm for Monday to

Friday and for Saturday, it is at 8.00 am to 1.00p only.

Emergency leave Emergency leave will be given to partner and workers for

reasonable reason such as sick and death with an early

notification.

Table 4

Administration Office Layout

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Guidelines

PR

AY

ER

RO

OM

2 1/2

11/91/2 ft

10ft

22ft

26ft

3ft PRAYER ROOM

6ft

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Office table

Office chair

Filing cabinet

Laptop

Telephone

Toilet

Decoration

Printer

Sink

Door

Table 5

List of Furniture And Office Equipment.

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NO Item No of item Cost per unit

(RM)

Total cost

(RM)

01 Office Desk 5 100.00 500.00

02 Office chair 5 48.00 240.00

03 Filling cabinet 5 128.00 640.00

04 Photostat/printer/scanner/

machine

1 250.00 250.00

05 Dustbin 2 3.50 7.00

06 Sweep 2 5.50 11.00

07 Stationery( Pen, paper,

File, stapler, punches,

paper slip)

- 150.00 150.00

08 Plastic chair 5 15.00 75.00

09 Telephones 2 65.00 130.00

10 Fire extinguisher 1 120.00 120.00

11 First Aid kit 1 80.00 80.00

12 Curtain 8 meter 7.00(per meter) 56.00

Total 2259.00

Table 6

ADMINISTRATION BUDGET

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No. TYPES ITEM FIXED

ASSET

COST

(RM)

MONTLY

EXPENSES

(RM)

OTHER

EXPENSES

(RM)

01. Capital

Expenditure/

Fixed Assets

Land

Building

Office Equipment

Other Assets

(Desktop and

clothes )

Renovation

22,000.00

9800.00

2259.00

2,800.00

10,000.00

-

-

-

-

02. Working

Capital/

Monthly

Expenses

Salary

EPF & SOCSO

Electricity (Office

used)

Telephone +

Internet

10,509.00

950.00

400.00

200.00

03. 0ther

Expenses

License & Business

Registration

Road tax & Vehicle

insurance

150.00

300.00

TOTAL 46859.00 12,059.00 450.00

Table 7

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Total Administration Budget

= RM 46859.00 + 12059.00 + 450.00

= RM 59368.00

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INTRODUCTION

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In marketing activities it is about to satisfy consumer needs and wants and at the same

time to achieve the target market. Consumer satisfaction is the main factors that can contribute

profit of the business. If the customer satisfied with our business product they will used it again

and again but if they are not satisfied with our business product they will not used and they might

tell to the other people to avoid by using our product. Marketing can be defined as the activities

that are carried out systematically to encourage and increase sales of product or service as long

as the activities are in line with religious and ethical practice. Systematic means, the marketing

activities needs to be planned and implement in systematic manner. Resources such as time,

money, manpower need to be use wisely and avoid the wastage of resources. Systematic

marketing effort is essential to ensure that customer attracted and motivated to purchase the

product or service offer. This will help to sustain and increase sales by encouraging repeat

purchase. Marketing activities also must be in line with religious and ethical consideration. From

this marketing plan we can know how to introduce our product to our target customer. We also

can do an estimation of our profit by having a sales forecast. By having these, we know who will

be our potential customer in the target market, who are our competitor, how strong they are, and

how much the market share and how we can compete with them. We have to find the affective

way for market our product, which makes the marketing plan really important to a business.

Business which has a weak of marketing strategies will not be able to compete with others and

will not last long in the market.

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In the marketing plan we would include several information about market analysis, target

market, market size, market share, competitors, sales forecast, marketing strategies and the

marketing budget.

Objectives in marketing plan.

Know our competitors weakness and strengths

Define our consumer target market to make the organizations successful in the future

To ensure our business run smoothly.

To fulfill satisfaction, needs and wants consumer

Increase sales of existing products

Increase market shares

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Marketing structure

MARKETING MANAGER

Nor Afifah Bt Yusof

OPERATION MANAGER

Izzah Binti Raynie

Marketing executive Supervisor

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Product.

The Capsicum name refers to both sweet and hot peppers. They have been used in

cooking from Asia to South America to Italy. Their flavours range from the common sweet green

bell pepper to super-spicy chillies. Capsicums have been used in folk medicine for years, and

scientists are currently researching possibilities for its use in pain relief. Peppers are a great

choice for the home gardener because of their low maintenance and easy growth habit. In fact,

peppers are closely related to tomatoes and share many of their characteristics.

Nowadays, capsicum one of the vegetables that have a high demand from the customer.

This kind of vegetables is very expensive and can give a high profit for those who plant these

vegetables. This kind of vegetables can give average 15 capsicums for one tree. Furthermore it

will give 3 Kg each of the trees; the outcome of this capsicum is high and can give a profit for us.

So, we as a capsicum producer will fulfil the customer need by serve them a good quality

Capsicum.

The procedure in packaging our product is very systematic. We will not mix the good

quality capsicum and the bad quality capsicum. We will ensure the capsicum is divide by it

quality. Quality is very important for us in producing capsicum. As we know, people were very

concern with the quality especially in a food sector. Capsicum is also one of a product that we

can eat, so proving a good quality is our concern to our entire prospect customer. Moreover by

putting a less pesticides in our product is also one of the ways for us in care our product quality.

Therefore, the customer needs is our concerns and the best quality will be serve for them.

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Target market

In geographic, we have identified in term of geographic factors where Capsicum Land Trading is

located in fully planting area at Kundasang. As it located at an altitude of approximately 2000

meters above sea level, which means that Kundasang surrounded with a very good climate that

suitable for plantation. This place has a very high potential to become a healthy and success

business. This will reduce the promotion cost in a way of advertising, as the people already know

that Kundasang is a popular in plantation industry. So that, it surely be an advantage in lightens

the burden in promoting the Capsicum Land Trading. Other than that, we also planting the

Capsicum at Tambunan as the weather are also suitable to grow a healthy Capsicum. We

ourselves also provided a delivery service to those who need it with the extra cost.

We have decided to target the 14 districts in Sabah where we will be supply the

Capsicum to them from Kundasang. The wholesaler will come to Kundasang to get the

Capsicum from the Capsicum Land Trading and they will sell them at their “pasar besar” in each

of these districts. The retailer from the “pasar besar” will supply the capsicum to the hotels,

restaurants and to local people around there. We believe that the restaurants and hotels will need

our product in order to fulfill their cooking and menu. In addition, there are also many houses

developing, so that we can predict and see that the residents are also increase. This will give a

huge impact to our product selling because there are chances those consumers will buy our

product.

We believe that the Capsicum Land Trading will be the first choice of the customers, as

we will make sure our service and product are in good quality. We will make sure and concerns

about our product’s quality that we will get pick the vegetables fresh from the farm and pack

them into the boxes that we design by ourselves. The box will protect the condition of the

Capsicum, furthermore the design color and the shape of our product will attract people to buy

the Capsicum from us.

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Extra discount will be given to the loyal and permanent wholesaler who are stick and loyal with

our product. Other than that, our business will make a contract agreement for long-term business

that will be going on between our business and the wholesalers.

Fourteen Target (14) districts in Sabah

i) Kota Kinabalu

ii) Sandakan

iii) Tawau

iv) Kota Belud

v) Sipitang

vi) Lahad Datu

vii)Tambunan

viii) Tenom

ix) Nabawan

x) Keningau

xi) Ranau (Kundasang)

xii)Beaufort

xiii) Papar

xiv) Kudat

xv) Brunei Darussalam

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MARKET SHARE.

Market share is refers to estimated potential sales of our business after we taking into the

consideration of the market size and our competitors influences. There are certain factors that are

yet being taken into consideration in the process of estimating the market share, which are total

main competitors size and competitors’ influences, experiences and duration of the business,

competitors’ strengths and financial strengths. Markets share can be calculated by using

Market share = Average sales per year x 100

Average sales per year for all competitors

Before entering the market

NO COMPETITORS ESTIMATED

MARKET SHARE

(%)

ESTIMATED MARKET

SHARE.

(RM)

1 Pertubuhan peladang

kinabalu 28% 786,017.40

2 Koperasi pembangunan

desa 20.5% 575,477.025

3 Pekebun-pekebun kecil

11.5% 322,825.58

4 Pengusaha SUNNING

(indirect comnpetitors) 20% 561,441.00

5 Pengusaha Chua

(indirect competitors) 20% 561,441.00

TOTAL 100% 2,807,205.00

(sources from: Puan Sumaini Suhaimin Bandaran) Table 8

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After analyzing the competitors’ strength and weaknesses, Capsicum Land Trading enterprise is

confident it can control 10% of the market.

AFTER CAPSICUM LAND TRADING ESTABLISHED.

NO COMPETITORS ESTIMATED

MARKET SHARE

(%)

ESTIMATED MARKET

SHARE.

(RM)

01.

Pertubuhan peladang

kinabalu 25% 701,801.25

02.

Koperasi pembangunan

desa 18.5% 519,332.93

03. Pekebun-pekebun kecil 12.5% 350,900.63

04.

Pengusaha SUNNING

(indirect comnpetitors) 18% 505,296.90

05.

Pengusaha Chua

(Indirect competitors) 16% 449,152.80

06. Capsicum Land Trading 10% 280,720.00

TOTAL 100% 2,807,205.00

Table 9

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COMPETITORS IN THE MARKET

In the business that we want to venture there are several businesses that already exist. By

knowing our competitors is one of the methods in how to increase or improve your business. It is

important to know whom the business is sharing our market identify the main competitors in

order to develop appropriate marketing strategies to compete with competitors. These are our list

of our competitors and the differences between our business and others competitors.

NO COMPETITORS STRENGHTS WEAKNESS

01 Pertubuhan peladang

kinabalu

They are the big

company that

produces vegetables

and fruits.

Have their own loyal

customer.

The workers fully

trained.

Practice fustigation in

their plantation.

Offer expensive

price.

Their target

market is on

tourist from

abroad.

They tend to use

high amount

pesticides and

insecticides.

1. Koperasi pembangunan desa Have big companies

that produce

vegetables and fruits.

Have their own loyal

customer.

Workers from the

village have their

own plantation.

Produce commercial

product.

Offer expensive

price.

Tend to use high

amount of

pesticides and

insecticides.

Workers are not

permanent.

Have to compete

with their own

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Have many branches. branches.

Pekebun-pekebun kecil Have a good

relationship with

KPD.

Have own stall at

Kundasang.

Have a big acre of

plantation.

Some of them have a

loyal customer.

Use high amount

of pesticides and

insecticides.

Target market is

only the visitor

who comes to

their stall.

No one to

continue their

business as they

are getting old.

Pengusaha SUNNING

(indirect comnpetitors)

Well known.

Producing more

vegetables.

Many experiences.

Have a link in this

arena.

Have a middle

market share.

Not planting

capsicum.

Pengusaha Chua

(indirect competitors)

Producing more

vegetables.

Many experiences.

Exports their

vegetables to

overseas.

Not provide

vegetables in

country.

Not planting

capsicum.

( sources From: Puan Mariana Bt Taliban) Table 10

SALES FORECAST

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Once we have estimated our market share, we can forecast our sales for the coming business

period. There are several factors we that we considered in forecasting the sales.

First is customer of the existence of our business. We know that it will take some time for

our customer to buy our product. Our Sales Forecast will show modest estimation for the first

year of operation beginning in January on 2011.

The production of Capsicum is only twice a year. It is because the procedure of the

operation in order to plant the Capsicum needs a long duration. It takes five months to wait until

the Capsicum plants produce its vegetables. In that five months period, there are certain

processes to do which will be on the operational plan.

Therefore, the sales forecast for Capsicum Land Trading are based on the annually or

year sales forecast in which cover twice a year and not based on monthly. However, once the

production of Capsicum is on track, there will be sale for the product wholesaler because the

grading product to the wholesaler because the grading process that conducted by our company

have rejected the low quality of capsicum. The first and second production for the year we called

as the phase 1 and phase 2. There are three picking process for one phase. Below is the table for

our sales forecast based on its grade and mass. We have estimated the sales forecast into two,

which is in maximum and minimum sales forecast that based on the production for the certain

phase by the factor of climate, soil and season.

Forecasting sales

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Grade A = RM 11 per kiloGrade B= RM 10 per kiloGrade C = RM 8 per kilo

Table 11

YEAR MONTHGRADE AND QUANTITY OF SALES IN

YEAR 1TOTAL

SALES PER MONTH

(RM)Grade A Grade B Grade c

1

January 1200kg 1150kg 640kg 29,820February 1285kg 1180kg 668kg 31,279March 1290kg 1160kg 670kg 31,150April 1270kg 955kg 610kg 28,400May 1100kg 900kg 560kg 28,780June 1230kg 1150kg 660kg 30,310July 1255kg 1190kg 700kg 31,305August 1260kg 1200kg 630kg 30,900September 1270kg 1220kg 490kg 30,090October 1300kg 1160kg 570kg 30,460November 1340kg 1100kg 680kg 31,180December 1360kg 1270kg 670kg 33,020

366,694Table 12

YEAR MONTHGRADE AND QUANTITY OF SALES IN

YEAR 2TOTAL

SALES PER MONTH

(RM)Grade A Grade B Grade c

2

January 1350kg 1260kg 645kg 32,610February 1360kg 1210kg 670kg 30,000March 1375kg 1185kg 689kg 32,487April 1320kg 1100kg 650kg 30,720May 1260kg 990kg 635kg 28,840June 1225kg 1160kg 590kg 29,795July 1260kg 1120kg 710kg 30,740August 1274kg 1350kg 790kg 33,834September 1290kg 1440kg 550kg 32,990October 1450kg 1170kg 680kg 33,090November 1500kg 1200kg 700kg 34,100December 1580kg 1220kg 730kg 35,420

384,626

YEAR MONTHGRADE AND QUANTITY OF SALES IN

YEAR 3TOTAL

SALES PER

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MONTH(RM)

Grade A Grade B Grade c

3

January 1590kg 1210kg 735kg 35,470February 1600kg 1273kg 750kg 36,330March 1570kg 1275kg 734kg 35,892April 1530kg 1220kg 710kg 34,710May 1410kg 1000kg 690kg 31,030June 1455kg 1140kg 730kg 33,135July 1450kg 1270kg 710kg 34,330August 1460kg 1344kg 710kg 35,080September 1575kg 1350kg 720kg 36,585October 1620kg 1370kg 730kg 37,360November 1690kg 1400kg 775kg 38,790December 1700kg 1425kg 780kg 39,190

427,902Table 13

Year 1 = RM 364,915Year 2 = RM 384,626Year 3 = RM 427,902TOTAL = RM 1,177,443

Marketing strategies

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For a new business, it is important that we have the marketing strategies in order that we could

compete with other company. As we have identified the strength and weaknesses of our

competitors, our company would likely take some effort in introducing the company and to make

sure that our company will be recognize around the area and perhaps the whole of Sabah and

Brunei Darussalam. To do so, there are four key to our success which they are the product, price,

place and promotion.

Product strategy

A good product could satisfy our customers, and therefore it is important for our company to

ensure that our product is in its freshness before and after the delivering. In doing so, we have

standardize our product which is higher than our competitors.

The most important thing is supplying good product to our customer is the quality and the

freshness of our product. To achieve it we are trying to do the best way of packaging our product

to ensure its quality and freshness of our product.

Other than that we will be trying to fulfill our customers’ demand with a continuous supply of

the capsicums. That the problem that they always face where most of our competitor could not

supply their product in time to the customers.

Overall, the effective way to get more profit is by giving the best quality of product and service.

Therefore, it might be our one of the strategies to gain confidents among the customers.

Pricing strategy

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Pricing strategy can be best referred as the amount of money charged to the customer for a

particular purchase. It is important for our company to determine the best price that should be

charge to our customer in order that our customer will satisfied with the given. Furthermore, it is

also important for us to charge lower price compare to our competitor and in the same time, we

make profit.

The strategy that we are using in determining our price of the product is by using the

competition-based pricing. It is common form of competition-based pricing is going rate pricing.

In our opinion by using this method, our business could give a value price bases on our

competitors’ prices. We assume that the customer judge a product’s value on the prices

competitors charge for their products. Furthermore, the going-rate pricing is quite popular and is

most often used when businesses bid for jobs.

The second way that we use to determine our price of our product is the factors affecting pricing.

Although our company can set prices according to our product concept, cost, target market,

marketing objectives or targeted profit, we must be aware with several factors such as the

economic conditions, government regulations, social concerns and consumer groups.

Overall, we apply this method by giving the best price that offer several services such as during

the first month we offer free delivery of our product for our customers, durable packaging and

others.

Distribution strategy.

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Distribution strategy is aimed at establishing a structured and controllable distribution system to

ensure the product offered reaches the target customers. A distribution channel moves goods

from producers to consumers.

Below are the ways of our distribution strategies that the first one is the direct to consumer and

the second one is the selling through wholesalers:

A distribution channel moves goods from producer to customer. As for our restaurant, we use the

simple common form of distribution which is Direct to Customer. This type of channel is called

direct marketing channel or channel one. In this type of distribution have no intermediary level

and consist of a business selling directly to customer.

According this type of distribution, we have decide to use this type of distribution channel

because of it is easy for our company to distribute our product. Other than that, our company has

been decided to make a contract with our wholesaler so that our sales will go smoothly every

month.

Promotion Strategy

Capsicum Trading TO customer

Capsicum Trading TO wholesaler TO customer

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Promotion strategy is used to disseminate information about the company’s product or services

with the purposes of attracting the target market. There are few several ways of promotion

strategies that our company is using to promote our company and our product.

1. Advertising

Advertising are non-personal, paid form of promotion through the mass media. The reasons why

most company use this strategy is that it is simple way to communicate the consumer that

provide information about the company. Our company has decided ways to advertise our

company which the first way is through newspapers.

2. Signboard

This signboard will be having our logo together with our company’s name (Capsicum Land

Trading). Each of the signboard will lead our customer to our place, completely with the

direction. It will be located in each important or main road or street.

KG. CINTA MATA ,PS 140,89308,

KUNDASANG RANAU,SABAH.

500 meter

3. Brochure/Flyers

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This kind of promotion strategy will print out our vision, mission, objective, the advantages of

our capsicum and map. We could say this kind of promotion will illustrate a little and more about

our business. The important element of this advertising toll is, it includes the address, contact

number and the person who will be in charge in this business. We are planning to put this

brochure/ flyers inside newspaper and then it will distribute to the people. We had found this

strategy is easier to distribute to flyers rather than walking around in a day.

4. Internet website (Blog)

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We also provide internet website where the people can view our blog and connected with us in

order to gain information from our Capsicum Land Trading. Besides that, through this website it

gives opportunity for us and the people to exchange ideas so that we can improve our planting

management and fulfill the satisfaction of our customer. In this website also we stated the

information of our business such as prices, handling, operation hour and etc through this kind of

promotion we can directly promote our market.

5. Business card

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Each and one of the managers will have their own business card so in this way we can distribute

our business card to our own friends and family. Other than that, we will also distribute the

business card to our new and regular customer, so that when they encounter any problem, they

can immediately call us.

6. Capsicum fair and premium.

Capsicum fair will be doing once in a year. This capsicum fair will doing in our outside office.

The purpose of this capsicum fair is to promote our product and build a relationship with our

customer. Besides that, giving a premium to our loyal customer is also a strategy for us in

marketing our plan. We will give a premium to a customer once in a month.

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Place strategy

Capsicum land trading is located at kampung cinta mata kundasang. It was located in the area

that famous of vegetables. People will find the vegetables in this place. It also called heart of

vegetables. Besides that, kundasang is a place that tourist always come. The wholesalers from

the other place and also from the other country also come to kundasang to buy the vegetables.

So, by choosing a Kundasang as our place is a one strategy in market our product.

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Marketing budget

ITEMS FIXED ASSETS

EXPENSES

(RM)

MONTHLY

EXPENSES

(RM)

OTHER EXPENSES

(RM)

Signboard 500.00

Newspaper

Radio

Premium

Flyers

150.00

100.00

1100.00

200.00

Business card

Capsicum

Fair

Brochure

150.00

2500.00

450.00

Total 500.00 1550.00 3100.00

Table 14

Total marketing Budget = 500.00 + 1550.00 + 3100.00 = RM 5150.00

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Introduction

Operation plan and production is very important in our business. It is to ensure that all the

production operation is done correctly and efficiency. Production plan is prepared to ensure that

the project is done depend on the higher demand of the customer and market demand by offering

the suitable price. Operation department will take responsibilities to make sure all the operating

part will go smoothly as we have plan. By providing high quality will make our product is

different with the other competitors. The way we care of our product will make it being more

quality. We will ensure it have enough fertilizer and water. In addition we will make sure it will

not harm by the insect and disease. The way we doing our packaging will keep the freshness and

quality of the product, so it will attract more customers.

We will also fulfill the demand of the consumer. Besides that, we also will do planting activity

in two phases. This strategy will ensure that the capsicum can be produce to all customers and

also fulfill the demand of the customer without delaying the capsicum producing. Besides that,

the free service will be given for the loyal customer. In conclusion, in order to ensure that our

plants are in good conditions, healthy and high quality, good maintenance is needed. Therefore,

we need the systematic planning of our business.

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OPERATIONAL OBJECTIVES

1. To minimize the operation cost and maximized profit earned.

2. To supply the fresh capsicum to customers in the most effective, efficient and

professional manner.

3. To ensure the operation management run smoothly.

4. To give customer a high level of satisfaction after consuming our fresh capsicum or lada

benggala.

5. To make capsicum Land Trading stand out through variety and quality.

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Operation Structure

OPERATION MANAGER

Izzah Binti Raynie

GENERAL MANAGER

Izzah Binti Raynie

Farm worker

Factory worker

Supervisor

Driver

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Operation Hours

Our business operation in office is 8 hours per day that is from 8.00am until 5.00 pm, except

for Saturday and Sunday. In Saturday and Sunday there will only 4 hours per day that is 8.00am

until 12.00pm. The rest time will be on 12.00pm to 2.00pm.

WORKING DAYS AND HOURS.

Monday to Friday 8.00 am – 5.00 pm

(Rest hours on 12.00pm to 2.00 pm)

Saturday and Sunday 8.00 am – 12.00 pm.

Table 15

Our duty is to check all the workers do their job, to ensure all the farm material sufficient for

example insecticide, fertilizer and the capsicum seeds is still have a stock. Besides that, visiting

the farm of capsicum and finding new wholesalers for expanse our market is also our

responsible.

Business Hours

BUSINESS DAYS AND HOURS

Monday to Friday

8.00 am – 5.00 pm.

(Rest hours on 12.00 pm to 12.00 pm)

Saturday and Sunday 8.00 am – 12.00 pm.

Table 16

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PLANNING PROCESS

Doing a planning is an important for our company to run this operation smoothly. Process

planning is done to identify the step by step process from beginning to end of the operation.

Below are the process of developing land, planting, fertilization, watering, harvesting and the last

is sell to the wholesalers.

Operation flow

chart for the

Capsicum product

Table 17

Step 1

Develop the first land area of the plantation.

Step 2

Neutralize the soil using limestone and compost fertilizer.

Step 3

Inculcate the seed on the tray.

Step 5

Transfer the germinated seed to the boundary.

Step 6

Watering process.

Step 7

Roping is made one in two months.

Step 8

Spray insecticides base on the decease that harms the apple chili.

Step 9

Develop the second land area of the plantation.

Step 10

Plucking process for the first land area.

Step 11

Cleaning process.

Step 12

Divide the capsicum according to their quality

Step 13

Package the product.

Step 14

Weighing the product.

Step 15

Storage process.

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Explanation of the flow chart activities

Step 1

Develop the first land area of the plantation.

Whole of our plant is 4 acres. To maximize the land we develop all land by phase to phase. Firstly, we do the

cleaning of the land by removing grass, make line boundary, make inculcate place and set up the green house and

pipe system. We will clean the first land which is at Kundasang then followed by our second land at Tambunan.

Step 2

Neutralize the soil using limestone and compost fertilizer.

The soil of the boundary must neutralize before transfer any vegetables to the new land because it is acidic. Using

the limestone and compost the fertilizer will neutralize the soil. Then, leave it for a week.

Step 3

Plant the seed on the tray.

Plant the seed in a black plastic for a month. It can not be directed planted in the boundary. Put the black plastic in

the unconditional place.

Step 5

Transfer the germinated seed to the boundary.

After finish one month the germinate seed will transfer on the boundary. Then, remove the germinated seed into the

boundary. Planted it on one line. In this process, the soil of each seed bed has been added by organic fertilizer.

Step 6

Watering process.

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Watering the seed bed or the boundary. This step is important because water need to help diluting process of

chemical and fertilizer in the soil. The diluting mineral in the soil then effect the good quality production of

capsicum.

Step 7

Roping is made one in two months.

Every two months the capsicum must be roping. This is because it need to support the Capsicum from a fracture

because the stick could not sustain its own weight.

Step 8

Spray insecticides base on the decease that harms the apple chili.

Crops will be sprayed with insecticides by a disease that attacks the plant. The spraying insecticide is performance

once in a week.

Step 9

Develop the second land area of the plantation.

Before harvesting the capsicum in the first area plant develop the second plant and planting the capsicum from the

first step.

Step 10

Plucking process for the first land area.

After the fruit look mature the plucking process can be started. All fertilizer process must be stopped 3 days before

the capsicum is being harvest. The chemical fertilizer must be spray on the plant just after the plucking process so

that the left of immature capsicum did not destroy by the louse or insect.

Step 11

Cleaning process.

Clean the capsicum in the water reservoir. Make sure the insecticide is cleared from the capsicum. Then, dry the

capsicum.

Step 12

Divide the capsicum according to their quality.

In this step is a process to identify the quality of the capsicum. Then, divide it according to the quality. Such as,

Gred A, Gred B, and Gred c.

Step 13

Package the product.

After divide according to the quality of the capsicum it will be package into the box and the plastic according to the

demand of the customer.

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Step 14

Weighing the product.

This process is the process where the capsicum is being weighing. The weigh of each package will be written on the

box. By having a weigh in the plastic and box will facilitate consumer in buying the capsicum.

Step 15

Storage process.

After weighed, the capsicum that being package will be saved to the store before it is sent to the whole seller.

Table 18

Activities Month

Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

Planting/mature

(1st phase)

Harvest for 1st

phase

Neutralize for

1st phase

Planting/mature

(2nd phase)

Harvest for 2nd

phase

Planting/mature

(1st phase)

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Gantt chart for year 1

Gann chart for year 2

Activities Month

Jan Feb Mar Apr Mei Jun Jul Aug Sep Oct Nov Dec

Planting/mature

(1st phase)

Harvest for 1st

phase

neutralize

Harvest for 2nd

phase

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neutralize

Planting/mature

(2nd phase)

Gann chart for year 3

Activities Month

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Planting/mature(1st

phase)

Harvest for 1st phase

Neutralize

Harvest for 2nd phase

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Neutralize

Planting/mature (2nd

phase)

Operation Layout

Capsicum tree farm

(2 acre / 21780 capsicum tree)

Drying area

2cm

2 cm

Washing area

Packaging area

20ft x 15ft

20ft x20ft

9ft x 6ft

Drying area

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Material Requirement

List Cost per unit Supplier

Organic fertilizers

(baja tahi ayam)

RM3.80 per gunny Kinabalu kimia

Chemical fertilizers RM18.00 per boxes Kinabalu kimia

Chemicals fertilizers RM12.00 Kinabalu kimia

Pesticides RM15.00 per bottle Kinabalu kimia

Capsicums seeds RM45.00 per pack Kinabalu kimia

Store

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Herbicides RM50.00 per gallon Kinabalu kimia

Land RM5000 per pack Kinabalu kimia

TOTAL RM5143.80

Table 19

Machine equipment

Types Supplier Price (RM) Quantity Total (RM)

Hoe Kinabalu

kimia

20.00 5 100.0

Cleaver Kinabalu

kimia

12.00 5 60.00

Plant bed

cover

KPD 70.00 4 280.00

Head pipe Kinabalu

kimia

3.50 7 24.50

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wheelbarrow Kinabalu

kimia

90.00 4 360.00

Mask Kinabalu

kimia

15.00 4 60.00

Glove Kinabalu

kimia

2.00 10 20.00

Water tank Peladang 80.00 5 400.00

Hose KPD 25.00 5 125.00

TOTAL RM1429.00

Table 20

Manpower Planning

POSITION NO. OF WORKERS QUALIFICATION

Farm workers 6 SPM, working experience in

capsicum farm.

Driver operation 2 Have a GDL license and have

an experience.

Factory worker 2 Experience in packaging and

storage. Know about the

management in capsicum.

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Table 21

FORECASTING PURCHASES FOR YEAR 1

ITEMS TOTAL PRICE IN A MONTH

(Development 1st land phase = 2 Acre)

January

Organic fertelizer(Baja Tahi Ayam) RM 3.50 X 300 Gunny = RM 1050.00

Chemical Fertelizer ( for leaves) RM18.00 X 10 Boxes = RM 180.00

Chemical fetelizer (excel havest for

fruits)

RM 12.00 X 10 Boxes = RM 120.00

Chemical fertelizer (3 in 1 for root

leaves and shoot)

RM 25.00X 20 Gunny = RM 500.00

Pesticides (Mala thiom/ Racun kutu) RM 15.00 X 8 Bottles = RM 120.00

Pesticides ( Decis- racun serangga) RM 35.00 X 8 Bottles = RM 280.00

Herbicides (Copcides- Racun kulat) RM 48.00 X 8 Packs = RM 384.00

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Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

Capsicum seed RM 120.00 X 115 Tins = RM 13,800.00

TOTAL RM17,058

Table 22

February

Pesticides (Mala thiom/ Racun kutu) RM 25.00 X 4 Bottles = RM 100 .00

Pesticides ( Decis- racun serangga) RM 35.00 X 8 Bottles = RM 280 .00

Herbicides (Copcides- Racun kulat) RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM642 .00

TOTAL RM1214.00

Table 23

MARCH

Pesticides (Mala thiom/ Racun kutu) RM 25.00 X 4 Bottles = RM 100.00

Pesticides ( Decis- racun serangga) RM 35.00 X 12 Bottles = RM 420.00

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Herbicides (Copcides- Racun kulat) RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM1336.00

Table 24

APRIL

Chemical Fertelizer ( for leaves) RM18.00 X 8 Boxes = RM 144.00

Chemical fetelizer (excel havest for

fruits)

RM 12.00 X 8 Boxes = RM 96.00

Chemical fertelizer (3 in 1 for root leaves

and shoot)

RM 15.00X 20 Gunny = RM 300.00

Pesticides (Mala thiom/ Racun kutu) RM 25.00 X 4 Bottles = RM 100.00

Pesticides ( Decis- racun serangga) RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun kulat) RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM1876.00

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Table 25

MAY

Organic fertelizer(Baja Tahi Ayam) RM 3.50 X 300 Gunny = RM 1050.00

Pesticides (Mala thiom/ Racun kutu) RM 25.00 X 4 Bottles = RM 100.00

Pesticides ( Decis- racun serangga) RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun kulat) RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM2386.00

Table 26

(Development 2st land phase = 2 Acre)

JUNE

Organic fertelizer(Baja Tahi

Ayam)

RM 2.80 X 220 Gunny = RM 616.00

Chemical Fertelizer ( for leaves) RM18.00 X 8 Boxes = RM 144.00

Chemical fetelizer (excel havest

for fruits)

RM 12.00 X 4 Boxes = RM 48.00

Chemical fertelizer (3 in 1 for

root leaves and shoot)

RM 15.00X 20 Gunny = RM 300.00

Pesticides (Mala thiom/ Racun

kutu)

RM 25.00 X 4 Bottles = RM 100.00

Pesticides ( Decis- racun

serangga)

RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun

kulat)

RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

Capsicum seed RM 120.00 X 115 Tins = RM 13,800

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TOTAL RM16,244

Table 27

JULY

Pesticides (Mala thiom/ Racun

kutu)

RM 25.00 X 4 Bottles = RM 100.00

Pesticides ( Decis- racun

serangga)

RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun

kulat)

RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM1,336

Table 28

AUGUST

Pesticides (Mala thiom/ Racun

kutu)

RM 25.00 X 8 Bottles = RM 200.00

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Pesticides ( Decis- racun

serangga)

RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun

kulat)

RM 48.00 X 8 Packs = RM 384.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM1,628.00

Table 29

SEPTEMBER

Chemical Fertelizer ( for leaves) RM18.00 X 8 Boxes = RM 144.00

Chemical fetelizer (excel havest

for fruits)

RM 12.00 X 8 Boxes = RM 96.00

Chemical fertelizer (3 in 1 for

root leaves and shoot)

RM 5.00X 20 Gunny = RM 300.00

Pesticides (Mala thiom/ Racun

kutu)

RM 25.00 X 4 Bottles = RM 100.00

Pesticides ( Decis- racun

serangga)

RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun

kulat)

RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM1,876.00

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Table 30

OCTOBER

Organic fertelizer(Baja Tahi

Ayam)

RM 3.50 X 300 Gunny = RM 1050.00

Pesticides (Mala thiom/ Racun

kutu)

RM 25.00 X 4 Bottles = RM 100.00

Pesticides ( Decis- racun

serangga)

RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun

kulat)

RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM2,386.00

Table 31

NOVEMBER

Pesticides (Mala thiom/ Racun

kutu)

RM 25.00 X 12 Bottles = RM 300.00

Pesticides ( Decis- racun

serangga)

RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun

kulat)

RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM1,536.00

Table 32

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DECEMBER

Chemical Fertelizer ( for leaves) RM18.00 X 8 Boxes = RM 144.00

Chemical fetelizer (excel havest

for fruits)

RM 12.00 X 8 Boxes = RM 96.00

Chemical fertelizer (3 in 1 for

root leaves and shoot)

RM 15.00X 20 Gunny = RM 300.00

Pesticides (Mala thiom/ Racun

kutu)

RM 25.00 X 4 Bottles = RM 100.00

Pesticides ( Decis- racun

serangga)

RM 35.00 X 12 Bottles = RM 420.00

Herbicides (Copcides- Racun

kulat)

RM 48.00 X 4 Packs = RM 192.00

Herbicides (Racun rumput) RM 52.00 X 12 Gallons = RM 624.00

TOTAL RM1,876.00

Table 33

NO. MONTH TOTAL MONTHLY PURCHASES

(RM)

1. January 17058.00

2. February 1214.00

3. March 1336.00

4. April 1876.00

5. May 2386.00

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6. June 16244.00

7. July 1336.00

8. August 1628.00

9. September 1876.00

11. November 1536.00

12. December 1876.00

TOTAL RM 50,752.00

Year 2

The forecasting for the purchase will increase 3%.

RM50, 752 X 3% = RM 1522.56

So, RM50, 752.00 + RM 1015.4= RM 52274.56

Year 3

The forecasting of purchases will increase 4%

RM 52274.56 X 4% = RM 2090.98

So, RM 52274.56 + RM 2090.98 = RM 54365.54

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OPERATIONS BUDGET

ITEM FIXED ASSET COST

(RM)

MONTHLY EXPENSE OTHER EXPENSE

Machine equipment. 1429.00

Lorry 50,000

Raw materials 17,058.00

Diesel 400.00

Electricity 250.00

Road tax 300.00

Insurance 300.00

Total 51429.00 17708.00 600.00

Table 35

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Total operation budget= RM51429.00 + RM17708.00 + 600.00 = RM 69737.00

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INTRODUCTION

The last step in preparing the business report is financial plan whereby it provides the

business plan with rigor, by confirming that the objectives set are achievable from a financial

point of view. The financial plan will represents how Capsicum Land Trading will afford to

achieve its strategic goals and objectives. It shows the estimation of cash needed to start the

capsicum production business and its operational expenses, which then help to make decision on

how to raise the cash, either by loan or issuing additional shares in our business. The plan also

identifies the types of resources needed, quantities amounts of resources in term of labor,

equipment and material, calculates the total cost of each resource, summarizes the costs of

budget, and identifies any risks and issues related to the budget set. The plan also includes future

income to allocate various expenses in our business. All financial data comes from the operating

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budgets that include administrative budget, marketing budget and operational budget. It states all

the expenses of the business which are needed for the business to run.

OBJECTIVES

1. To avoid wastage done by our company in preparing the budgeting statement.

2. To ensure the organization will gain profit from our business operation.

3. To apply the financial aspect in business result such as administration, marketing and

operational.

Financial structure

GENERAL MANAGER

Izzah Binti Raynie

Financial Manager

Naquiah Natasha Binti Nadzmie

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FINANCIAL RESPONSIBILITIES

1. To ensure that the sources of finance are sufficient in order to satisfy the financial needs

of the business.

2. To ensure that all the resources are used accordingly.

3. To establish and maintain financial security.

4. To secure the capital.

5. To ensure that the project or business will run smoothly.

6. Prepare the financial statement for the business as a proof for any business affairs.

THE PURPOSE OF FINANCIAL PLANNING

AccountantClerk

Supervisor

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The purpose of planning the financial plan is to help the manager to manage cash flows and

to make sure that the sources of finance are enough to support the expenses that are needed to

manage the business. It also helps the business operation in monitoring the expenses whereby it

is not over budget or limits and to identify suitable sources of finance that are suitable to support

the business.

THE IMPORTANCE OF FINANCIAL PLAN

1. To identify the relevant source of financial.

2. To ensure the initial capital is sufficient.

3. To appraise the availability of the project before actual investment is committed.

4. To determine the size of investment such as implementation cost.

5. To be used as a guideline for implementation.

FINANCIAL PLAN STRATEGY

Our financial plan has follow several steps that been followed to become workable and also

meaningful.

1. Gathering all financial input.

2. Preparing the project implementation cost schedule.

3. Preparing the source financial schedule.

4. Preparing the pro-forma cash inflow statement.

5. Preparing the pro-forma income statement.

FINANCIAL ANALYSIS

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Financial analysis involves generating the information from the financial statements to determine

the performance of the business. It analyzes the financial performance of Capsicum Land

Trading while determi9ning the volume of sales of the product from Capsicum Land Trading to

cover the total cost.

The financial analysis covers current ratio, quick ratio, return on sale, return on equity,

and return on investment and debt to equity ratio.

Current ratio and quick ratio determine the ability of the business to cover its expenses

with its working capital. However, quick ratio does not consider the liability of the business into

calculation. The higher the ratio shows better capability of the business to cover its expenses.

Return on sale shows the performance of profit income to Capsicum Land Trading based on the

sales of the capsicum. Increment of return on sale represents higher income profit. Return on

equity and return on investment represents the ability of Capsicum Land Trading to provide

benefit to those who had offer financial support to Capsicum Land Trading. Like return on sale,

increment in these to provide higher benefit to financial supporters.

Debt to equity shows the ability of the business to settle its debts. The higher the ratio

indicates the failure of the business to clear its debts.

BUSINESS BACKGROUND

BUSINESS LEGAL ENTITY 2

1= Private Limited Company ( Sdn. Bhd.)2= Partnership3= Sole ProprietorshipNATURE OF BUSINESS 2

1= Manufacturing2= Trading3= Service

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FINANCIAL INPUT

PROJECTED ADMINISTRATIVE, MARKETING AND OPERATIONS EXPENDITURE

ADMINISTRATIVE EXPENDITUREFixed Assets RMLand & Building 22,000 office equipment 2,259 other assets 2,800 Renovation 10,000 Office departmet 9,800 Working Capital  salary both partner 10,509 EPF(12%) 786 SOCSO (2.5%) 164 Eectricity(office use) 400    

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Other Expenditure  Other Expenditure 200Pre-Operations  Deposit (rent, utilities, etc.)  Business Registration & Licences 150 Insurance & Road Tax for Motor Vehicle 300 Other Expenditure  TOTAL 59,368

Table 35

MARKETING EXPENDITURE

Fixed Assets RM

Signboard 500          Working Capital  Newspaper 150 Radio 100 Premium 1,100 Flyers 200          

Other Expenditure  Other Expenditure 3100Pre-Operations  

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Deposit (rent, utilities, etc.)  Business Registration & Licences  Insurance & Road Tax for Motor Vehicle  Other Expenditure  TOTAL 5,150

Table 36

OPERATIONS EXPENDITURE

Fixed Assets RM

Machine equipment 1,429 Lorry 50,000       Working Capital  Raw Materials 17,058 Carriage Inward & Duty  Salaries, EPF & SOCSO  Electricity( operation use) 250 Diesal 400       

Other Expenditure  Other Expenditure  Pre-Operations  

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Deposit (rent, utilities, etc.)  Business Registration & Licences  Insurance & Road Tax for Motor Vehicle 600 Other Expenditure  TOTAL 69,737

Table 37

PROJECTED SALES AND PURCHASE

SALES PROJECTIONMonth 1 29,820 Month 2 31,279 Month 3 31,150 Month 4 28,400 Month 5 28,780 Month 6 30,310 Month 7 31,305 Month 8 30,900 Month 9 30,090 Month 10 30,460 Month 11 31,180 Month 12 33,020

Total Year 1 366,694

Total Year 2 384,626

Total Year 3 427,902

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Table 38PURCHASE PROJECTION

Month 1 17,058 Month 2 1,214 Month 3 1,336 Month 4 1,876 Month 5 2,386 Month 6 16,244 Month 7 1,336 Month 8 1,628 Month 9 1,876 Month 10 2,386 Month 11 1,536 Month 12 1,876

Total Year 1 50,752

Total Year 2 52,767

Total Year 3 54,366 Table 39

SOURCE OF FINANCE

TERMS OF LOAN (if required)Interest rate 5%Loan duration 5Interest payment method* 2* Method: 1 = flat rate 2 = annual rest

TERMS OF HIRE-PURCHASE (if

required)Interest rate 5%Hire-purchase duration 5

Table 40

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PROJECTED IMPLEMENTATION COST AND SOURCE OF FINANCE

Capsicum Land Trading PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost Sources of Finance

Requirements Cost LoanHire-

PurchaseOwn Contribution

Fixed Assets       Cash

Existing F.

AssetsLand & Building 22,000       22,000 office equipment 2,259     2,259  other assets 2,800     2,800  Renovation 10,000 10,000      Office departmet 9,800 9,800      Signboard 500     500             

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                      Machine equipment 1,429     1,429  Lorry 50,000       50,000                       Working Capital 1 months    Administrative 11,859 5,858   6,001  Marketing 1,550     1,550  Operations 17,708 12,708   5,000  Pre-Operations & Other Expenditure 4,350 299   4,051 Contingencies 8%   10,740 0   10,740                TOTAL     144,995 38,665   34,330 72,000

Table 41

BUDGETADMINISTRATIVE BUDGET

Particulars F.AssetsMonthly

Exp. Others Total     Fixed Assets        

Land & Building 22,000     22,000

office equipment 2,259     2,259

other assets 2,800     2,800

renovation 10,000     10,000

Office departmet 9,800     9,800

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Working Capital        

salary both partner   10,509   10,509

EPF(12%)   786   786

SOCSO (2.5%)   164   164

Eectricity(office use)   400   400

    -   -

    -   -

  -   -

Pre-Operations & Other Expenditure        

Other Expenditure     200  

Deposit (rent, utilities, etc.)     - -

Business Registration & Licences    

150 150

Insurance & Road Tax for Motor Vehicle    

300 300

Other Pre-Operations Expenditure    

- -

Total 46,859

11,859

650 59,168

Table 42

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MARKETING BUDGET

Particulars F.AssetsMonthly

Exp. Others Total                  Fixed Assets        

Signboard 500    

500

  -    

-

  -    

-

  -    

-

Working Capital      

Newspaper 150  

150

Radio    

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100 100

Premium   1,100  

1,100

Flyers   200  

200

    -  

-

    -  

-

    -  

-

Pre-Operations & Other Expenditure      

Other Expenditure     3,100  

Deposit (rent, utilities, etc.)     -

-

Business Registration & Licences    

-

-

Insurance & Road Tax for Motor Vehicle    

-

-

Other Pre-Operations Expenditure    

-

-

Total 500

1,550

3,100

2,050

Table 43OPERATIONS BUDGET

Particulars F.AssetsMonthly

Exp. Others Total                  Fixed Assets        

Machine equipment 1429     1,429

Lorry 50000     50,000

        -

        -

Working Capital    

Raw Materials   17,058  

17,058

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Carriage Inward & Duty   -  

-

Salaries, EPF & SOCSO   -  

-

Electricity( operation use)   250  

250

Diesal   400  

400

    -  

-

  -

-

Pre-Operations & Other Expenditure        

Other Expenditure     -  

Deposit (rent, utilities, etc.)     -

-

Business Registration & Licences    

-

-

Insurance & Road Tax for Motor Vehicle    

600

600

Other Pre-Operations Expenditure    

-

-

Total 51,429

17,708

600

69,737

Table 44

DEPRECIATION METHOD AND ECONOMIC LIFE OF FIXED ASSET

FIXED ASSETSEcon.

Life (yrs)FIXED ASSETS

Econ. Life (yrs)

office equipment 5   5 other assets 5   5 renovation 5 Machine equipment 5 Office departmet 5 Lorry 5 signboard 5   5 - 5   5

DEPRECIATION METHOD (1=straight line, 2=declining balance) 1

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Capsicum Land TradingDEPRECIATION SCHEDULES

Fixed Asset office equipment Fixed Asset other assetsCost (RM) 2,259   Cost (RM) 2,800  

MethodStraight Line   Method

Straight Line  

Economic Life (yrs) 5  

Economic Life (yrs) 5  

Annual Accumulated Annual Accumulated Year Depreciation Depreciation Book

ValueYea

rDepreciation Depreciation Book

Value

  -

-

2,259  

-

-

2,800

1 1

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452 452 1,807 560 560 2,240

2

452

904

1,355 2

560 1,

120

1,680

3

452

1,355

904 3

560 1,

680

1,120

4

452

1,807

452 4

560 2,

240

560

5

452

2,259 - 5

560

2,800

-

6 0 0 - 6 0 0

-

7 0 0 - 7 0 0

-

8 0 0 - 8 0 0

-

9 0 0 - 9 0 0

-

10 0 0 - 10 0 0

-

Table 45

Fixed Asset Renovation Fixed Asset Office departmentCost (RM) 10,000   Cost (RM) 9,800  

MethodStraight Line   Method

Straight Line  

Economic Life (yrs) 5  

Economic Life (yrs) 5  

Annual Accumulated Annual Accumulated

Year Depreciation DepreciationBook Value

Year Depreciation Depreciation

Book Value

  -

-

10,000  

-

-

9,800

1 2,000

2,000

8,000 1

1,960

1,960

7,840

2 2,

000

4,000

6,000 2 1,960

3,920

5,880

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3 2,

000

6,000

4,000 3 1,960

5,880

3,920

4 2,

000

8,000

2,000 4 1,

960 7,

840

1,960

5 2,

000 10

,000 - 5

1,960

9,800

-

6 0 0 - 6 0 0

-

7 0 0 - 7 0 0

-

8 0 0 - 8 0 0

-

9 0 0 - 9 0 0

-

10 0 0 - 10 0 0

-

Table 46

Fixed Asset SignboardCost (RM) 500  

MethodStraight Line  

Economic Life (yrs) 5  

Annual Accumulated

Year Depreciation DepreciationBook Value

  -

-

500

1 100

100

400

2

100

200

300 3

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100 300 200

4

100

400

100

5

100

500 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

Table 47

Fixed Asset Machine equipment Fixed Asset LorryCost (RM) 1,429   Cost (RM) 50,000  

MethodStraight Line   Method

Straight Line  

Economic Life (yrs) 5  

Economic Life (yrs) 5  

Annual Accumulated Annual Accumulated

Year Depreciation DepreciationBook Value

Year Depreciation Depreciation

Book Value

  -

-

1,429  

-

-

50,000

1 286

286

1,143 1

10,000

10,000

40,000

2

286

572

857 2 10,

000 20,

000

30,000

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3

286

857

572 3 10,

000 30,

000

20,000

4

286

1,143

286 4 10,

000 40,

000

10,000

5

286

1,429 - 5

10,000

50,000

-

6 0 0 - 6 0 0

-

7 0 0 - 7 0 0

-

8 0 0 - 8 0 0

-

9 0 0 - 9 0 0

-

10 0 0 - 10 0 0

-

Table 48

Capsicum Land TradingLOAN & HIRE-PURCHASE AMMORTISATION SCHEDULES

LOAN REPAYMENT SCHEDULEAmount 38,665    Interest Rate 5%    Duration (yrs) 5    Method Baki Tahunan  

Year Principal InterestTotal

PaymentPrincipal Balance

  -

-  

38,665

1 7,733

1,933

9,666

30,932

2 1, 2

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7,733 547 9,280 3,199

3 7,733

1,160

8,893

15,466

4 7

,733

773 8,506

7,733

5 7

,733

387 8,120

-

6 0 0 -

-

7 0 0 -

-

8 0 0 -

-

9 0 0 -

-

10 0 0 -  

Table 49

PRO-FORMA INCOME STATEMENT

Capsicum Land TradingPRO-FORMA INCOME STATEMENT

          Year 1 Year 2 Year 3  Sales 366,694 384,626 427,902   Less: Cost of Sales        Opening stock        Purchases 50,752 52,767 54,366   Less: Ending Stock        Carriage Inward & Duty        50,752 52,767 54,366   Gross Profit 315,942 331,859 373,536        

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  Less: Enpenditure      

 Administrative Expenditure

142,308 142,308 142,308

  Marketing Expenditure 18,600 18,600 18,600   Other Expenditure 3,300 3,300 3,300

 Business Registration & Licences

150    

 Insurance & Road Tax for Motor Vehicle

900 900 900

 Other Pre-Operations Expenditure

     

 Interest on Hire-Purchase

     

  Interest on Loan 1,933 1,547 1,160

 Depreciation of Fixed Assets

15,358 15,358 15,358

  Operations Expenditure 7,800 7,800 7,800   Total Expenditure 190,349 189,812 189,426   Net Profit Before Tax 125,593 142,047 184,111   Tax   0 0 0  Net Profit After Tax 125,593 142,047 184,111

 Accumulated Net Profit 125,593

267,640 451,751

Table 50

PRO-FORMA BALANCE SHEET (Table 51)

Capsicum Land Trading

PRO-FORMA BALANCE SHEET

        Year 1 Year 2 Year 3

  ASSETS             

 Non-Current Assets (Book Value)

    

  Land & Building 22,000 22,000 22,000   office equipment 1,807 1,355 904

  other assets 2,240 1,680 1,120

  renovation 8,000 6,000 4,000

  Office departmet 7,840 5,880 3,920

  signboard 400 300 200

              

       

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  Machine equipment 1,143 857 572

  Lorry 40,000 30,000 20,000

       

       

  Other Assets      

  Deposit             

  83,430 68,073 52,715

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

  Accounts Receivable 3,302 3,205 3,566

  Cash Balance 177,061 327,837 520,011

  180,363 331,042 523,577

         TOTAL ASSETS 263,793 399,115 576,292

         Owners' Equity        Capital 106,330 106,330 106,330   Accumulated Profit 125,593 267,640 451,751

  231,923 373,970 558,081

  Long-Term Liabilities        Loan Balance 30,932 23,199 15,466

  Hire-Purchase Balance      

  30,932 23,199 15,466

  Current Liabilities        Accounts Payable 938 1,946 2,745          TOTAL EQUITY & LIABILITIES 263,793 399,115 576,292

FINANCIAL RATIO ANALYSIS

Capsicum Land TradingFINANCIAL RATIO ANALYSIS

Year 1 Year 2 Year 3

LIQUIDITY        Current Ratio 192 170 191   Quick Ratio (Acid Test) 192 170 191  

EFFICIENCY        Inventory Turnover #DIV/0! #DIV/0! #DIV/0!         PROFITABILITY        Gross Profit Margin 86.16% 86.28% 87.29%

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  Net Profit Margin 34.25% 36.93% 43.03%  Return on Assets 47.61% 35.59% 31.95%  Return on Equity 54.15% 37.98% 32.99%         SOLVENCY        Debt to Equity 13.74% 6.72% 3.26%  Debt to Assets 12.08% 6.30% 3.16%  Time Interest Earned 64 91 158          

Table 52

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Table

Table

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Table

Table

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Table

Table

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