ENTREPRETEURSHIP
UCS 1343
BUSINESS REPORT
MAY 2014
PREPARED BY:
ADRI BIN AYUB
012013051999
VIKNESWARY SUNDRAM
012013052001
NURHANIS HAIRANI
012013051710
MUZAINA BINTI BUSIRI
012013052000
FAIZUDDIN BIN ABDULLAH
012013051955
SUBAN A/L RETINASAMY
012013030012
CHEE YEE JUIN
012013050753
KAKAJAN BABAYEN
012013050703
VIVIYANIE BINTI MOHD FAIRUL
012011030165
FAAZILA AIDA
0120100110075
PREPARED FOR:
SIR ANWAR
SUBMISSION DATE:
14 JULY 2014
Stick N Grill Sdn.Bhd
Lot 16-68, Jalan P Ramlee, Kuala Lumpur City Centre, Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur,Malaysia.
Tel: 03-80812699
Our ref: SA/ 001 /46/ 4/ 9
Your ref:
Date:
General Manager
Maybank Berhad,
Aras 18, Menara Maybank,
100, Jalan Tun Perak,
50050, Kuala Lumpur.
Tel: 03-2074 7418
Dear Sir,
BUSINESS LOAN APPLICATION
I, Faizuddin bin Abdullah, as the General Manager of Stick N Grill Sdn.Bhd, would like to draw your attention to the matter
mentioned above.
For your information, we are a new restaurant with a plan to start a business venture that serve western cuisine around Kuala
Lumpur and to expand to other areas such as Selangor and Johor.
Our business is located at Lot 16-68, Jalan P. Ramlee, Kuala Lumpur City Centre, Kuala Lumpur and all the facilities needed
to operate our business can be found there. This business has the potential to gain profits due to the unique of our food that
cannot be found in any restaurant.
However, we do not have sufficient amount of capital to run the business. This business needs capital of RM 300,000.00. As
for now, we only have an amount of RM 200,000.00. Therefore we would like to apply for a loan from your bank for an
amount of RM 300,000.00.
We would be much obliged if you could provide a business loan. We look forward to hearing from you soon. I can be
contacted at 03-8081 2699 if you wish to discuss any of the above points. We are ready to furnish you with additional
materials with regards to this matter.
Thank you,
Yours faithfully,
……………………………
(Faizuddin bin Abdullah)
General Manager
Stick N Grill Sdn.Bhd
BUSINESS PLAN
Stick N Grill Sdn.Bhd
Consumer first choice
30th October 2014
Faizuddin bin Abdullah
General Manager
Stick N Grill Sdn. Bhd
Lot 16-68, Jalan P Ramlee, Kuala Lumpur City Centre, Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur,Malaysia.
Telephone number: 03-80812699
Fax number: 05-4898 0088
stickNgrill@gmail.com
Table of Contents
Item
1.0 Introduction
1.1 Name of the company
1.2 nature of business
1.3 Industry Profile
1.4 Location of the business
1.5 Date of commencement
1.6 Factors in selecting the proposed venture
1.7 Future prospect of the business
2.0 Purpose of Preparing a Business Plan
3.0 Business/Company Background
3.1 Name of the company
3.2 Address (business and correspondence)
3.3 Telephone number/Fax number/E-mail address
3.4 Form of business
3.5 Main business activities
3.6 Date of commencement
3.7 Date of registration and registration number
3.8 Name of bank and account number
4.0 Background of Owner/Partners/Directors
4.1 Personal particulars of partners
4.2 Partnership agreement
5.0 Background of Proposed Object
5.1 Physical location
5.2 Price of premise
5.3 Availability of manpower
5.4 Transportation facilities
5.5 Distance from customers
5.6 Basic amenities
6.0 Organization/Management/Administration Plan
6.1 Organization’s mission, vision and objectives
6.2 Organizational chart/structure
6.3 Manpower planning
6.4 Schedule of task and responsiblilities
6.5 Remuneration plan
6.6 List of office equipments and supplies
6.7 Administrative budget
7.0 Marketing Plan/Analysis
7.1 Description of products or services
7.2 Target market
7.3 Market size
7.4 Competitors
7.5 Market share
7.6 Sales forecast
7.7 Marketing strategy
7.8 Marketing budget
8.0 Operational Plan/Production Strategy
8.1 Operational/innovation process
Page
8.2 Process flow chart
8.3 Production schedule/Capacity planning-output in units
8.4 Material requirement
8.5 Machine and equipment requirement
8.6 Operation layout
8.7 Location of operations
8.8 Operational overheads
8.9 Operational budgets
9.0 Financial Plan/Strategy/Analysis
9.1 Project implementation cost schedule
9.2 Schedule of financial sources
9.3 Fixed assets depreciation table
9.4 Loan amortization
9.5 Hire purchase repayments schedule
9.6 Pro forma cash flow statements
9.7 Pro forma profits and loss accounts/income statements
9.8 Pro forma balance sheet
10.0 Conclusion/Summary and Recommendation
11.0 Appendices
Executive Summary/Abstract
Stick N Grill Sdn.Bhd provides variation of western cuisine at a reasonable price. Our main
objective is to become a market leader of food industry in Malaysia within 10 years from now
and to make our restaurant become consumer first choice. The company plans to distinguish
itself from other competing restaurant as our restaurant provides variation in western which
indirectly involve our specialization in that particular food.
Our restaurant will be a luxurious in a form of westernizes culture that located in one of the
famous tourist attraction in Kuala Lumpur. Our restaurant will serve all segments of people
either tourists or citizen itself. Currently there is a competition in the same category as Stick
N Grill across Malaysia. We took this opportunity in monopolize our geographic area in
Kuala Lumpur by reaching out to tourist and residents from any place.
Stick N Grill will operate seven days in a week under experienced management, headed by
our General Manager, Faizuddin bin Abdullah. The company uses an organizational structure
based on functions in the organization. The restaurant will have a Financial Advisor, Head
Chef and Marketing Manager. This structure suits Stick N Grill Sdn.Bhd as this organization
emphasizes functional specialities to perform tasks.
This document will demonstrate the need for a business of this calibre in Kuala Lumpur and
it chances for success. It will serve as a road map that will set the course for further planning
and for the implementation process. Anticipated financing is RM 200,000.00 for the total
start-up cost of RM 40,500.00, with RM 33,100.00 to be used as an operating funds for the
first months. This financing will help ensure a timely start to the business in order to take
advantage of the busy streets in Kuala Lumpur.
1.0 Introduction
1.1 Name of the company
Stick N Grill Sdn. Bhd
1.2 Nature of the business
Stick N Grill Sdn. Bhd is a private company that focuses on western cuisine that
meets the need of the customers. We specialize in providing authentic and quality
western foods.
1.3 Industry Profile
The main idea for developing this business is due to lack of western cuisine in
Malaysia. We find that many restaurants in Malaysia served common western
food such as Chicken Chop and Fish and Chips which there is no variation in
serving the customer the unique western cuisine from America and Europe. This
would give us an opportunity in bringing variation in western cuisine that meets
the needs of customers. Other than that, our restaurant also sells at reasonable
price which give to all segments of customer.
1.4 Location of business
Stick N Grill Sdn. Bhd is located at Suria, Kuala Lumpur Convention Centre
(KLCC). We chose this location because it is a strategic location for the customer
to find our place. KLCC is well known by Malaysia due to the twin towers that
located besides KLCC. Besides, this location considered as a tourist attraction
for them to visit and convenient for customer to find sufficient parking lots as
provided by KLCC.
1.5 Date of commencement
Our company will commence operations on 30th October 2014.
1.6 Factors in selecting the proposed venture
We chose this business because there is an opportunity in introducing variety of
western cuisine that is not yet exists in Malaysia. We believe that many of our
competitors served limited choice of western foods that enable us to take an
advantage in bringing new western food in the market with reasonable price. We
also have confidence that our customers will love our authentic food.
1.7 Future prospects of the business
Our future plans for this business is to open more branches in Malaysia. Besides
that, we hope that our business operation will be recognized throughout Malaysia.
2.0 Purpose of Preparing the Business Plan
This business plan is prepared by Stick N Grill Sdn. Bhd for the purpose of obtaining a
working capital loan from Maybank Berhad for an amount of RM 300,000. This business
plan is also prepared as a guideline for managing the proposed venture.
3.0 Business/Company Background
Name of the business: Stick N Grill Sdn. Bhd
Business address: Lot 16-68, Jalan P Ramlee, Kuala Lumpur City Centre, Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur, Malaysia.
Correspondence address: 54, Jalan USJ 4/1M, Subang Jaya, 47600, Selangor Darul Ehsan.
Telephone number: 03-8081 2699
Fax number: 05-4898 0088
Email address: stickNgrill@gmail.com
Form of business: Private limited company
Main activity(s): Restaurant that specialize on western cuisine
Date of commencement: 10th October 2014
Date of registration: 30th June 2014
Registration number: B1-567655
Initial (own) capital: RM 200,000
Name of bank: Maybank Berhad
Bank account number: 1173566433
4.0 Background of Partners
4.1 Personal Particulars of Partner 1:
i. Name of partners: Vikneswary A/P Sundram
ii. Identity card number of the partners: 850708-14-6291
iii. Permanent address of the company: Lot 16-68, Jalan P Ramlee, Kuala Lumpur
City Centre, Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur,
Malaysia.
iv. Correspondence address: 54, Jalan USJ 4/1M, Subang Jaya, 47600, Selangor
Darul Ehsan.
v. Website address: stickNgrill.com.my
vi. E-mail address: vikneswarysundram@gmail.com
vii. Telephone number:
viii. Date of birth: 08/07/1985
ix. Age: 29
x. Marital status: Married
xi. Academic qualifications: A Level in Science (2005-2006)
Degree in Finance (2006-2009)
Charted Financial Analyst (2010-2011)
xii. Courses attended: Establish Unique Business (2011)
Journey to success (2012)
xiv. Experience: 2 years as Financial Officer in Petronas Twin Tower
xv. Present occupation: Financial Analyst in Yap Seng Berhad
xvi. Capital contribution: RM 100,000
Personal Particulars of Partner 2:
i. Name of partners: Chen Yee Juin
ii. Identity card number of the partners: 751012-10-4675
iii. Permanent address of the company: Lot 16-68, Jalan P Ramlee, Kuala Lumpur
City Centre, Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur,
Malaysia.
iv. Correspondence address: Jalan Akuatik 77F/16, D’ Kayangan, Seksyen 13,
4500, Shah Alam.
v. Website address: stickNgrill.com.my
vi. E-mail address: chenyeejuin@yahoo.com
vii. Telephone number:
viii. Date of birth: 12/10/1980
ix. Age: 39
x. Marital status: Single
xi. Academic qualifications: Foundation in Business (1992-1993)
Degree in Investment Analyst (1993-1996)
Master Degree in Economics (2000-2002)
xii. Courses attended: Entrepreneurship Course (2009)
xiv. Experience: 4 years as Investment Analyst in Auto Air Holdings Bhd
xv. Present occupation: Stock Broker in Bursa Saham
xvi. Capital contribution: RM 100,000
4.2 Partnership Agreement
The attached agreement is made and signed by all partners stated below. This
agreement is witnessed by a solicitor and defendant that have been appointed
for this purpose. Below are the details of the agreement.
4.2.1 Name of the business
Stick N Grill
4.2.2 Form of business
Partnership
4.2.3 Location of business
Lot 16-68, Jalan P Ramlee, Kuala Lumpur City Centre, Kuala Lumpur
Wilayah Persekutuan Kuala Lumpur,
Malaysia.
4.2.4 Equity contribution
The capital of our business is RM 200,000 and the equity contributions
are as follows.
1) Vikneswary Sundram
RM 100,000
2) Chen Yee Juin
RM 100,000
4.2.5 Financial matters
The profit and loss of the company is distributed among the
shareholders according to the percentage of their capital equity. If one
of the shareholders is declared bankrupt or has many liabilities or has
been proven cheating, all the other shareholders have the right to
remove the guilty shareholder.
If a shareholder does not want to continue his or her involvement in the
company, his or her capital will be given back after the profit and loss
of the company has been taken into consideration.
The financial manager keeps all the accounts and all shareholders are
allowed to view the accounts.
4.2.6 Management and position
1) Vikneswary Sundram
Finance Manager
2) Cheen Yee Juin
Operations Manager
4.2.7 Death and dissolvement
Dissolvement depends on the agreement of all the shareholdersin
matters concerning death or loss of sanity. However, the shareholder
should get the profit or capital until the shareholder quits.
4.2.8 Labour rights
All shareholders should acknowledge the rights of staff according to
the law.
4.2.9 Other matters
Dismissed notice should be given by the shareholder who wishes to
quit from the business within 30 days from dismissed date and agreed
by other shareholders. The contribution by the shareholder can be
claimed whether the company gains profit or loss depending on the
ratio of contribution. This dismissal will be enforced within 3 days of
notice.
4.2.10 Signature of shareholders:
1) Vikneswary Sundram …………………..
2) Chen Yee Juin
…………………..
5.0 Background of the Proposed Project
Stick N Grill Sdn. Bhd has chosen Suria KLCC, Kuala Lumpur as the location for selling
its products. The following section will explain the details of chosen location.
5.1 Physical Location
Our premise is located in the famous shopping complex which known as Suria KLCC
that is located in Jalan P.Ramlee, Kuala Lumpur. Suria KLCC occupies space
underneath Petronas Twin Towers and shares the parking lot with it. The mall is
accessible by KLCC LRT Station. It also serves as one of the bus hubs for Bandar
Buses of Rapid KL. The mall also has a tunnel link to Kuala Lumpur Convention
Centre which in turn connects to Bukit Bintang shopping district. This area has been
well known by tourist and Malaysian citizen, thus it is a strategic location for the
customers to find our place. Furthermore, our premise is in good condition and wellmaintained. The size of our premise is 1,200 sq. feet which consists of kitchen,
customer table, smoking zone and cashier.
5.2 Price of premise
We are renting the premise with a fixed rental rate of RM 50,000 per month.
5.3 Distance from the source of raw materials
This location was chosen because of its proximately to road transportation where the
cost of production can be at a minimum level. The sources of our raw materials are
located in Kuala Lumpur and Selangor, therefore the proximity to both public
transportation systems ensures that our raw materials are made available to us within
a relatively short distance and at minimal cost.
5.4 Availability of manpower
The location we chose offers credible workforce from well-planned state such as
Kuala Lumpur and Selangor. Our labours are from many races and have good
communication in Malay and English. Hence, we have the capacity to increase or
decrease manpower depending on the job size and schedule.
5.5 Transportation Facilities
KLCC has been well-known by their public transport which consists of Rapid LRT,
Sunny Taxi and Rapid KL buses. They have been providing their services as public
transportation for the past 15 years to the Selangor and Kuala Lumpur residents.
5.6 Distance from customers
Our business is located near to public transportation and commercial areas with the
closest being 500 metre away from our location. Customers can reach our premises by
three types of public transportation such as buses, taxi and LRT and customer can also
use their own vehicle where there are sufficient of parking lots underneath the
shopping mall.
5.7 Basic amenities (electrical, water and telephone facilities)
Our premise is located near transportation and other shopping complex. All facilities
and amenities such as water, electricity, telephone lines and transportation are
available here. With all these facilities, we believe we can operate our business
properly. Kuala Lumpur is a location that is fully equipped with basic amenities. All
places in Kuala Lumpur are connected by roads and commercial buildings. Dewan
Bandaraya Kuala Lumpur (DBKL), Syarikat Bekalan Air Selangor (SYABAS) and
Tenaga Nasional Berhad (TNB) have set up water and electricity in the whole area of
Kuala Lumpur. Trash and garbage collection are handled by DBKL. Telephone line
and Internet access are provided by Telekom Malaysia Sdn. Bhd (TM). Other
amenities that are available in Kula Lumpur are telephone booths, public
transportation, police station, fire station, bus stops, mosque, school, public attraction
and public toilet. Other amenities which are procided by private or individual parties
are clinics, bank, Hindu temple, Buddhist temple, petrol station, food court and so
forth.
6.0 Organization/Administration/Management Plan
6.1 Organization’s mission, vision and objectives
Table BP 1.1 shows the logo used by Stick N Grill Sdn.Bhd and describes the
company’s vision, mission and objectives.
Table BP 1.1 Logo, vision, mission and objectives of Stick N Grill Sdn. Bhd
Logo
Vision
Mission
Objectives
To become consumer first choice
To become a market leader of food industry
in Malaysia within 10 years.
1) To set up franchise network across
Malaysia.
2) To perform most variety choice and
reasonable price of western cuisine in
Malaysia.
6.2 Organizational chart/structure
Stick N Grill Sdn. Bhd uses an organizational structure based on functions in the
organization. The firm is divided into general manager. Under general manager,
it is divided by three which is finance and administrative, marketing and
operation. This structure is a starting point for Stick N Grill before expanding its
business to franchising. We believe that this organization structure will improve
individual specialities in order to perform tasks. This organizational structure
will cover all aspects of the management as a business entity. Figure BP 1.1
illustrates our proposed structure.
Top Management
BOARD OF DIRECTORS
GENERAL MANAGER
FINANCE AND
ADMINISTRATIVE
DIVISION
MARKETING DIVISION
OPERATION DIVISION
Finance and Administrative Division
FINANCE AND
ADMINISTRATIVE
ADMINISTRATIVE
FINANCE AND
ACCOUNTING
FINANCIAL
ADVISOR
ACCOUNTING
Marketing Division
MARKETING DIVISON
QUALITY
CONTROL
ADMIN
MARKETING MANAGER
Operation Division
HEAD OF DEPARTMENT
HEAD CHEF
KITCHEN HELPER
FRONT OFFICE
BEVERAGES
CASHIER
SERVER
Figure BP 1.1 Organizational Structure of Stick N Grill Sdn. Bhd
6.3 Manpower planning
Stick N Grill Sdn. Bhd has two partners and they manage and execute the operation of the
business as shown in Table BP 1.2. Stick N Grill Sdn. Bhd has one general which under
finance and administrative division, it has one financial advisor and one accounting. Under
marketing division, it has one marketing manager. Under operation division, it has one head
chef, seven kitchen helper, five beverages, one front office, one cashier and eight servers.
Table BP 1.2 Position and number of managing personnel in Stick N Grill Sdn. Bhd
Position
General Manager
Financial Advisor
Accounting
Marketing Manager
Head Chef
Kitchen Helper
Beverages
Front Office
Cashier
Server
Number of personnel
1
1
1
1
1
7
5
1
1
8
6.4 Schedule of tasks and responsibilities
Each stakeholder has his own responsibilities to execute the operations of the business. It is
very important for every stakeholder to know their tasks and responsibilities in the company
as it will guide them in accomplishing their tasks and increases their specialities. Table BP
1.3 describes the tasks and responsibilities of every position. The following functions and
responsibilities have been identified and will be delegated to the respective individual to
ensure the smooth operation of the business.
Task/Position
General Manager
Financial Advisor
Accounting
Marketing Manager
Head Chef
Kitchen Helper
Beverages
Front Office
Cashier
Responsibilities/Job Position
- To plan, implement and control the overall
management of the business.
- To plan and monitor the strategic progress
of the business.
- To be accountable for the overall
performance of the business.
- To plan and direct the company financial
stability.
- To monitor the progress of company
transactions.
- To advise top management in terms of
financial so that money stability will secure.
- To develop a daily report of company
financial activity.
- To make forecasts and accounts for the
company.
- To develop advertising basis and marketing
implementation.
- To implement promotion and coupon
attraction.
- Evaluate daily customer satisfaction.
- To control the operation of kitchen
- To be responsible in directing and
instructing kitchen stakeholders.
- Received instruction from head chef
- Cook western food based on customer
orders.
- Received instruction from head chef
- Make beverages based on customer orders.
- To control the operation of dining
restaurant.
- To be responsible in directing and
instructing server (waiter/waitress).
- Handle daily transaction from customer to
restaurant.
Server
- Take customer order daily.
6.5 Remuneration plan
For our company, we have chosen the EPF (Employee Provident Fees) and SOCSO (Social
Security Organization) scheme to be given to all employees. EPF is a compulsory savings for
employees so that they will have money to support themselves once they retire. As a general
guideline, employers are required to contribute at least 12% of their basic salary and
company need to contribute 3% of their profits. Stick N Grill Sdn.Bhd also provides SOCSO
(Social Security Organization) contributions to ensure that employees receive compensation
in situations of work-related accidents or illness. Table BP 1.4 illustrates the remuneration
plan for each employee in Stick N Grill Sdn.Bhd.
Table BP 1.4 Remenuration Plan
Position
Number of
Employees
EPF
Contribution
(12%)Employee
552.00
SOCSO
(2%) (RM)
TOTAL
(RM)
1
Remuneratio
n per month/
Monthly
Salary (RM)
4,600.00
General
Manager
Financial
Advisor
Accounting
Marketing
Manager
Head Chef
Kitchen
Helper
Beverages
Front Office
Cashier
Server
TOTAL
92.00
3,956.00
1
4,200.00
504.00
84.00
3,612.00
1
1
4,200.00
3,500.00
504.00
420.00
84.00
70.00
3,612.00
3,010.00
1
7
3,000.00
1,200.00
360.00
144.00
60.00
24.00
2,580.00
1,032.00
5
1
1
8
27
1,000.00
2,500.00
1,500.00
800.00
26,500.00
120.00
300.00
180.00
96.00
3,180.00
20.00
50.00
30.00
16.00
530.00
860.00
2,150.00
1,290.00
688.00
20,855.00
6.6 List of equipment and supplies
Stick N Grill Sdn.Bhd has bought dining furniture, fittings and equipment from Nailul
Furniture Mall as listed in Table BP 1.5 below. We bought seventy sets of dining furniture,
one cash register, one system order computer and two kitchen equipment sets.
Table BP 1.5 List of equipment and furniture
OFFICE EQUIPMENT AND FURNITURE
No.
Type of Equipment
Quantity
Price/Unit (RM) Total Cost (RM)
Price per unit
(RM)
1
Dining furniture
70 sets
1,200.00
84,000.00
2
System order computer
1 sets
1,100.00
1,100.00
3
Cash register
1 sets
800.00
800.00
4
Kitchen equipment
2 sets
20,000.00
40,000.00
TOTAL
125,900
6.7 Administrative budget
Aside from dining furniture, fittings and equipment, Stick N Grill Sdn.Bhd also purchased
restaurant supplies such as stationary and paper for the restaurant purposes as indicated in
Table BP 1.6. The administrative budget also includes rental for shop lot to be paid every
month to the Suria KLCC Management. A rental deposit equal to five months’ rent and rent
utilities deposit for water, telephone and electricity are also included.
Table BP 1.6 Administrative expenditure
Administrative expenditure
RM
Fixed Assets/Capital expenditure
Dining Furniture
RM
125,900.0
0
125,900.0
0
Working Capital/Monthly expenditure
Salaries
Restaurant Supplies
Rental
Utilities
26,500.00
2,500.00
50,000.00
1,500.00
80,500.00
Other Expenditures
Rental Deposit
Utilities Deposit
TOTAL
250,000.0
0
3,000.00
253,000.0
0
459,400.0
0
7.0 Marketing Plan/Analysis
7.1 Description of products and services
Stick N Grill is a restaurant that specializes on western cuisine. We serve variation kinds of
food along with reasonable price. Our materials before producing to finished goods are
imported from foreign countries. Some of our foods and beverages are not even exist in
Malaysia, therefore we would like to grab this opportunity in bringing new western food in
Malaysia with reasonable price. Our foods and beverages is suitable for all types of
customers including veggie. Our restaurant was developed to fulfil the demands and
satisfaction of customer.
7.2 Target market
Stick N Grill Sdn. Bhd. Is a new company that is situated at Suria, Kuala Lumpur Convention
Centre (KLCC). We chose this location because it is a strategic location for customers to find
our place. Our target market would be both local and foreign customer of all ages. Since we
are specialize in serving quality western foods, we will get a big crowd especially from
westerners and also people who are looking for a fine western dining with a spectacular view
of KLCC scenery.
7.3 Market size
Stick N Grill intends to cater to a wide group of people. We want everyone to feel welcome
and relaxed in a cozy atmosphere with a wide and varied menu. It is our goal to have
"something for everyone" every day on our menu. In looking at our market analysis, we have
defined the following groups as targeted segments.
The Business Man: They work hard all day and often stay overnight in a strange city. He
needs a competent establishment that helps impress his clients and prospects. Afterward, they
want to relax and use the money they are making. They are the people that spend the most on
drinks, food and tips.
Happy Couples: The restaurant will have an intimate, romantic, sophisticated atmosphere that
encourages people to bring dates and to have couples arrive. Stick N Grill’s wants to be a
search place where people meet each other and develop a network. These young couples are
generally very successful but balanced and won't be spending as much on drinks.
The Family: The perfect place for a family dinner. Families will come for the accommodative
menu and friendly service. The excellent value in their meals will keep Stick N Grill’s in
favor with the parents.
High-end Singles: We will attract them with our decor and layout. Our international menu,
striking artwork, wine tasting evenings and events, excellent service and engaging clientele
will confirm the feeling of being in "the coolest place" in Kuala Lumpur.
Tourists: Kuala Lumpur is a city that attracts many vacationers for the whole year. Stick N
Grill will be a destination with its attractive atmosphere, international menu, and outdoor
patio.
7.4 Competitors (Strength and Weaknesses)
There are many competitors that we have to compete due to the restaurant that is on the same
industry which is western cuisine. Table BP 1.7 shows the strength and weaknesses among
competitors.
Table BP 1.7 Competitors’ strengths and weaknesses
Competitors
Tony Roma’s
Strength
- Pioneer of baby back ribs
- Award winning dishes
based on BBQ ribs.
- There are more than 250
locations in 25 countries.
- Adapted to international
market.
Weakness
- Average level of customer
service compare to big hotels
chain.
- Limited drink menu can be
concern for a few customers.
- Weak in advertising.
T.G.I Fridays
- A popular brand name and
brand popularity.
- Separate menus for lunch,
dinner, fast food and alcohol.
- Nearly 1000 locations
worldwide.
- It is expensive which target
certain segments of customer.
- Less advertising compared
to competitors.
7.5 Market share
Stick N Grill Sdn.Bhd speacilizes its food more on western cuisine that are from Europe and
America. It is located in the golden triangle of a shopping mall in Kuala Lumpur. We are not
able to identify real market share for our business as the data is ambiguous. However, we
have taken our market share as 10% of the number of population in the age of 25-65 years old
who live or work in Kuala Lumpur and the areas are particularly in Jalan P.Ramlee.
Competitors
Before Entrance
Percentage of Amount
market share (RM)
Tony Roma’s
TGI Fridays
TOTAL
45%
55%
100%
90,000.00
110,000.00
200,000.00
Adjusted Market After Entrance
Percentage of Percentage of Amount
loss of
market share (RM)
market share
10%
35%
70,000.00
5%
65%
130,000.00
100%
200,000.00
7.6 Sales forecast
The sales forecast for three consecutive years of the competitors of Stick N Grill Sdn.Bhd is
shown in Table BP 1.9.
Table BP 1.9 Sales forecast for three consecutive years of the main competitors
Month
January
February
April
May
June
July
August
September
October
November
December
TOTAL YEAR 1
TOTAL YEAR 2
TOTAL YEAR 3
Sales Forecast for 3 Consecutive Years
RM
Tony Roma’s (KLCC)
TGI Fridays (KLCC)
500,000.00
700,000.00
550,000.00
780,000.00
490,000.00
690,000.00
500,000.00
700,000.00
650,000.00
900,000.00
400,000.00
500,000.00
590,000.00
810,000.00
550,000.00
750,000.00
450,000.00
650,000.00
590,000.00
690,000.00
850,000.00
1,000,000.00
7.7 Marketing Strategy
The marketing starategy of Stick N Grill Sdn. Bhd is summarized in Table BP 1.10
Table BP 1.10 Marketing Strategy
Marketing Strategy
Institutional Marketing
Description
Promote the life style and entertainment value through blogging and
Program MarketingProduct and Retention
Strategy
Promotion Strategy
Pricing Strategy
social media
-Establish customer retention and customer engagement programs
-Establish sales goals for staff to achieve
-Establish promo hours to attract customer during non-peak hours
As for our promotion strategy, Stick N Grill Sdn.Bhd uses
advertising method as the first step in promoting our restaurant.
There will be printed advertisements in brochure, magazines and
newspapers soon. We have also visited Petronas Twin Towers office
where we give discount coupon of 20% in our restaurant.
Our restaurant can be categorized as luxuy but it never came across
us in increasing the price or target upper class customers. From the
start, we are restaurants that offered to each audience, in this case,
Stick N Grill have the most reasonable prices than the competitors.
7.8 Marketing budget
The marketing budget of Stick N Grill Sdn.Bhd includes capital, monthly and other
expenditures as shown in Table BP 1.11.
Table BP 1.11 Stick N Grill Sdn Bhd marketing expenditure
MARKETING EXPENDITURE
RM
Other Expenditures
Discount Coupon Rate
Promotion
Grand Opening
TOTAL
RM
30,000.00
4,000.00
5,000.00
39,000.00
8.0 Operational Plan / Production Strategy
8.1 Operational/innovation process
To date, we have completed our market research and lease has been secured located in Suria
KLCC area. Food and furniture purchased have been pre-negotiated. The next steps in the
operational plan are as follows :
8.1.1 Sign lot lease within 30 days
8.1.2 Sign equipment and raw material purchased order
8.1.3 Accept delivery of equipment and raw material
8.1.4 Received employee and training chef
8.1.5 Print marketing material
8.1.6 Open business
8.1.7 Launch advertising and promotional plan
8.2 Process flow chart
Process flow chart for Stick N Grill Sdn. Bhd.
ORDER RAW MATERIAL FROM THE SUPPLIER
SETTLE SHIPPING AND DELIVERING OF RAW MATERIAL
EMPLOYEE CHECK THE QUANTITY OF THE DELIVERED PRODUCT
RECEIVED DELIVERED RAW MATERIAL AND STORED IT INTO
FRIDGE
TAKE ORDER FROM CUSTOMER
PREPAIRED AND COOK MENU THAT CUSTOMER WANT
READY TO BE SERVED
8.3 : Production schedule/capacity planning
NO
TIME OF PRODUCTION
1.
MONTHLY
PRODUCTION
QUANTITY OF
PRODUCTION
30 BOX OF FISH
(1 BOX=30KG FISH)
70 BOX OF CHICKENS
(1 BOX=50KG CHICKENS)
100 BOX OF MEATS
(1 BOX=60KG MEATS)
40 BOX OF LAMBS
(1 BOX=40KG LAMBS)
GOODS PER MONTH
900KG FISH
3500KG CHICKENS
6000KG CHICKENS
1600KG LAMBS
8.4 Raw material requirement
We calculated our raw material based on our sales per month. Our monthly sale is 110900kg.
By dividing the sales per month to the capacity of box, we can get the total number of the
boxes that is needed in a month 240 boxes. The cost of the item is based on the quantity per
kg. Hence, the table show the cost of different item per month :
NO
ITEM
QUANTITY
REQUIRED
1.
FISH
900KG
650.00
2.
CHICKEN
3500KG
1500.85
3.
MEAT
6000KG
2350.50
4.
LAMB
1600KG
2120.45
TOTAL
SAFETY
STOCK
PRICE PER
KG (RM)
6621.80
SUPPLIER
8.5 Machine and equipment
We required our operatios to transfer the raw material from the lorry to our restaurant
efficiently. The cost of this transport is RM15,000.
NO
PARTICULAR
1.
Lorry
8.6 : Location of operation
QUANTITY
SUPPLIER
2
Hana Transport
Sdn. Bhd.
PRICE
PER UNIT
(RM)
15,000
TOTAL
AMOUNT (RM)
30,000
8.7 : Operation layout plan
The operation layout paln of Steak N Grill Sdn. Bhd. Is shown below :
8.8 : Operational Budget
OPERATIONAL EXPENDITURE
RM
RM
FIXED ASSET / CAPITAL EXPENDITURE
Kitchen
50,000
Lorry
30,000
80,000.00
WORKING CAPITAL/MONTHLY EXPENDITURE
Lorry driver salary (2 person)
2,000
Employee Salary (10 person inc chef, manager)
20,000
utilities
2,000
Rent
5,500
Electric and water bill
350
29,850.00
OTHER EXPENDITURES
TOTAL
109,850.00
9.1 Financial Strategy Analysis/Plan
Project implementation cost schedule
Steak N Grill Sdn Bhd fixed assets including shop lot, kitchen equipment, furniture and
fittings which cost a total of RM 60000. The restaurant’s working capital for three months of
administration, marketing and operation cost is RM 36000. Other expenses such as business
registration, insurance and sundries together with the deposit costs RM 7100. Therefore our
total project implementation costs amount of RM 103100 as shown in the table below. We
might also add a contingency cost (10 percent) to manage any variances that might occur
between the actual expenditure from the budgeted expenditure.
Table 9.1: Project Implementation Cost Schedule
STEAK N GRILL SDN BHD
PROJECT IMPLEMENTATION COST
COST
REQUIREMENTS
RM
RM
FIXED ASSETS
SHOPLOT
23000
EQUIMENTS
15000
FURNITURES
10000
FITTINGS
2000
SUBTOTAL
60000
WORKING CAPITAL
ADMINISRATION
3000
UTILITIES
1000
SUBTOTAL
4000
MARKETING
PROMOTIONAL COST
12000
SUBTOTAL
12000
OPERATIONS
OVERHEAD COST
20000
SUBTOTAL
20000
OTHER EXPENDITURES
PRE-OPERATING
BUSINESS REGISTRATION
100
SUBTOTAL
100
DEPOSITS
UTILITIES/ PHONE/ WATER/
ELECTRICITY
2000
RENTAL
5000
SUBTOTAL
7000
TOTAL
103100
CONTIGENGIES (10%)
10310
GRAND TOTAL: RM 113410
9.2 Sources of Finance
The breakdowns of financial sources are shown in table below. The financing sources
required will be obtained from our own capital amounting to RM 200,000.00 whereas the
balance of RM 300,000.00 will be obtained through financing from Maybank.
STEAK N GRILL SDN BHD
SCHEDULE OF FINANCING SOURCES AT YEAR 2013
SOURCES
COST(RM)
A. EQUITY/
OWN CONTRIBUTION
CASH
200,000.00
B. EXTERNAL SOURCES
BANK LOAN
300,000.00
C. OTHERS
0
TOTAL
500,000.00
9.3 Fixed Assets Depreciation/Schedule
The depreciation schedules of Steak N Grill Sdn Bhd fixed assets are shown in table below.
STEAK N GRILL SDN BHD
FIXED ASSET
METHOD
YEAR
0
1
2
3
4
5
6
7
8
9
10
DEPRECIATION SCHEDULE
KITCHEN
ORIGINAL
COST
EQUIMENTS
OF ASSET
STRAIGHT
LINE ECONOMIC LIFE
METHOD
ANNUAL
ACCUMULATED
DEPRECIATION
DEPRECIATION
1500
1500
1500
3000
1500
4500
1500
6000
1500
7500
1500
9000
1500
10500
1500
12000
1500
13500
1500
15000
15000 (RM)
10 YEARS
BOOK
VALUE
15000
13500
12000
10500
9000
7500
6000
4500
3000
1500
0
ANNUAL DEPRECIATION : ORIGINAL COST OF ASSET/ ECONOMIC LIFE
: RM 20000/ 10 YEARS
: RM 2000
STEAK N GRILL SDN BHD
FIXED ASSET
METHOD
YEAR
0
1
2
3
4
DEPRECIATION SCHEDULE
FURNITURES AND ORIGINAL
COST
FITTINGS
OF ASSET
STRAIGHT
LINE ECONOMIC LIFE
METHOD
ANNUAL
ACCUMULATED
DEPRECIATION
DEPRECIATION
2400
2400
2400
4800
2400
7200
2400
9600
15000 (RM)
10 YEARS
BOOK
VALUE
12000
9600
7200
4800
2400
5
2400
12000
0
ANNUAL DEPRECIATION : ORIGINAL COST OF ASSET/ ECONOMIC
: RM 12000/ 5 YEARS
: RM 240
9.4 Loan Amortization Schedule
Table below shows the loan amortization schedule of Steak N Grill Sdn Bhd.
STEAK N GRILL SDN BHD
LOAN AMORTIZATION REPAYMENT SCHEDULE
LOAN AMOUNT
300,000.00 (RM)
INTEREST RATE
LOAN PERIOD
5 YEARS
METHOD
YEAR
PRINCIPAL
INTEREST
0
1
2
3
4
5
60,000.00
60,000.00
60,000.00
60,000.00
60,000.00
2,000.00
1,900.00
1,800.00
1,700.00
1,600.00
TOTAL
PAYMENT
62,000.00
61,900.00
61,800.00
61,700.00
61,600.00
10 PERCENT
REDUCING
BALANCE
PRINCIPAL
BALANCE
300,000.00
240,000.00
180,000.00
120,000.00
60,000.00
0
PRINCIPAL: LOAN AMOUNT/ LOAN PERIOD
: RM 300,000.00/ 5 YEARS
: RM 60,000.00
INTEREST: LOAN AMOUNT × INTEREST
: RM 300,000.00 × 10%
: RM 30,000.00
9.5 PRO FORMA CASH FLOW STATEMENT
Table below shows the pro forma cash flow statement of Steak N Grill Sdn Bhd throughout
the planned period.
STEAK N GRILL SDN BHD
PRO FORMA CASH FLOW STATEMENT
1 2 3 4 5 6 7 8 9 1 1
0 1
CASH INFLOWS
OWNER’S
CAPITAL (CASH)
BANK
LOAN
CASH SALES
COLLECTION
OF ACCOUNTS
RECEIVABLE
TOTAL
CASH
INFLOWS
CASH PAYMENTS
CAPITAL
EXPENSES
MONTH
1
2
TOTAL
YEAR 2
YEAR 3
350,000
400,000
200,000
300,000
240,000.
EQUIPMENT
FURNITURES
AND FITTINGS
ADMINISTRATIV
E
EXPENSES
SALARIES
EPF AND SOCSO
ADMIN
OVERHEAD
RENTAL
MARKETING
EXPENSES
PROMOTION
OPERATIONAL
EXPENSES
RAW MATERIAL
DIRECT
LABOUR
OPERATIONAL
OVERHEAD
FINANCIAL
EXPENSES
PRINCIPAL
INTEREST LOAN
REPAYMENT
OTHER
EXPENSES
DEPOSIT
TOTAL CASH
OUTFLOWS
EXCESS/
(DEFICIT)
OPENING
BALANCE
CLOSING
BALANCE
9.6 PRO FORMA INCOME STATEMENT
Table below shows the income statement of Steak N Grill Sdn Bhd.
30,000.00
70,000.00
80000
15000
6000
80000
15000
6000
80000
15000
6000
60000
60000
60000
80000
30000
100000
30000
120000
30000
6000
6000
6000
50000
8000
50000
50000
6000
308000
347000
367000
82000
3000
33000
0
82000
85000
82000
85000
118000
12000
STEAK N GRILL SDN BHD
PRO FORMA INCOME STATEMENT
RM
SALES
LESS: COST OF SALES
( GOODS SOLD)
OPENING
STOCK : RM0
PURCHASES
: RM 100,000
GOODS AVAILABLE FOR
SALES : RM 100,000
LESS : CLOSING STOCK
: RM 15,000
GROSS PROFIT
LESS EXPENDITURE/
OPERATING EXPENSES
ADMINISTRATIVE
EXPENSES
KITCHEN
EQUIPMENTS
FURNITURES AND
FITTINGS
MARKETING
EXPENSES
PROMOTION
BUSINESS CARD
BANNER
POSTER
OPERATIONAL
EXPENDITURE
FINANCIAL
EXPENDITURE
INTEREST
ON
BANK LOAN
DEPRECIATION ON
FIXED ASSET
OTHER
EXPENDITURE
MISCALLANEOUS
TOTAL EXPENITURE/
OPERATING EXPENSES
NET PROFIT/ LOSS
BEFORE TAX
TAX
NET PROFIT/ LOSS AFTER
TAX
RM
240,000
(85,000)
155,000
120,000
120,00
122,000
30,000
11,000
1,000
154,000
1,000
ACCUMULATED
PROFIT/ LOSS
NET
9.7 PRO FORMA BALANCE SHEET STATEMENT
Table below shows the pro forma balance sheet statement of Steak N Grill Sdn Bhd.
RM
ASSETS
FIXED ASSET
(NON CURRENT
ASSET)
FURNITURE
AND 70,000
FITTINGS
KITCHEN EQUIPMENT
12,000
RM
82,000
CURRENT ASSETS
STOCK OF
FINISHED GOODS
ACCOUNTS
RECEIVABLE
CASH BALANCE
BANK
150,000
82,000
150,000
OTHER ASSETS
DEPOSIT
TOTAL ASSETS
OWNERS EQUITY
CAPITAL
ACCUMULATED
PROFIT
60,000
60,000
130000
200,000
1000
151000
NON CURRENT
LIABILITIES
BANK LOAN
CURRENT LIABILITIES
ACCOUNTS PAYABLE
REVENUE
TOTAL EQUITY AND
LIABILITIES
\
300,000
(121000)
130000
Table below shows the pro forma balance sheet statement for Steak N Grill to show the
company’s position for its assets, liabilities and owner’s equity at the end of financial year.
STEAK N GRILL SDN BHD
PRO FORMA BALANCE SHEET STATEMENT FOR THE YEAR
ASSETS
END 31 DECEMBER 2014
RM
EQUITY AND
LIABILITIES
OWNERS EQUITY
NON CURRENT
ASSETS
FURNITURES AND 12000
FITTINGS
KITCHEN
15000
EQUIPMENTS
CURRENT ASSETS
STOCK
OF 15000
FINISHED GOODS
ACCOUNTS
RECEIVABLE
CASH BALANCE
82000
BANK
OTHER ASSETS
DEPOSIT
TOTAL ASSETS
6000
130000
CAPITAL
RM
150000
ACCUMULATED
1000
PROFIT
NON
CURRENT
LIABILITIES
BANK LOAN
100000
CURRENT
LIABILITIES
ACCOUNTS
PAYABLE
REVENUE
(121000)
TOTAL
EQUITY 130000
AND LIABILITIES
10.0 Summary/Conclusion
As a summary, Stick N Grill Sdn.Bhd is a company that wants to venture into food industry.
This restaurant is solely unique from others due to the variation of western cuisine.
Furthurmore, Stick N Grill Sdn.Bhd has increase its effort by making the menu interesting
that will attract many group of customers. This approach is important in order to capture the
market attention.
In connection with that, we aim to serve western cuisine that meets the needs and satisfaction
of the customer. Stick N Grill Sdn.Bhd will continuously use promotion and advertising
approach in order to gain consumers attention. Based on the planning and projection, we are
very confident that this business venture will create a very satisfactory return on investment
from the third year of operation. For the first year, we are estimating of sales and expenses
minimal due to the fact that the company has just started the operation.
The business will continuously implement strategy especially on the marketing approach to
ensure that the business is very well known to the customers and we hope to build loyal
customer base in the third year of operation. We hope this application of financing will be
given due consideration from Maybank Berhad for us to start business. We also hope our
business will increase national economy and bring much welfare to the society.
11.0 Appendices
- Letters expressing interest to buy the product or services
- Questionnaires used to collect data as part of marketing research
- Resumes of the key management team and key technical advisors
- Promotional discount coupon or advertisements that describe the product and service.