BUSINESS PLAN
Tarte Cottage
No. 31, L7/L, JalanKristal,
Seksyen 7, 40000, Shah Alam, Selangor D.E
TEL : 03- 5555 3434
PREPARED BY :
Ahmad Nawawi Bin Muhamad
Ahmad Safarin Bin Masri
Mohd Shahrizan Bin Samsulbahri
Mohd Taufik Bin Zamri @ Zimri
Tajul Fitri Bin Mohd Diah
SUBMITTED DATE:
31 March 2006.
COPYRIGHT © UiTM
42Seksyen7#616,
40000 Shah Alam,
Selangor.
Puan Azlina Hanif
Pusat Pembangunan Usahawan Malaysia
Blok 13,lntekma Resort & Convention Centre,
Seksyen 7 40000 Shah Alam,
Selangor.
29 March 2006
Dear Madam,
Submission of Business Plan
Regarding to the above matter, we hereby submit our business plan.
2. Our business plan consist a detail introduction to our proposed business, it's
administration plan, marketing plan, operation plan as well as financial plan. This
business plan was written as a guideline for the management of the proposed
business, to attract investors and financial institutions in providing loans or
financing facilities and to estimate the potential of the growth and feasibility of the
planned project.
3. We do hope that this proposed business can be realized in the future. As risks
always exist in business we hope that this business plan, as a guideline, will help
to minimize the risks.
4. Lastly, we would like to compliment our lecturer, Puan Azlina Hanif and Puan
Normala Ismail for the precious guidance and useful advice in order to complete
this business plan. We are welcome any questions as well as comments and we
are willing to personally present or furnish additional materials to facilitate better
understanding of the proposed business. Thank you
Yours faithfully,
kMMU
Ahmad Nawawi Muhamad
General Manager
Tarte Cottage
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IP
Rujukan
Tarikh
:
:
UNIVERSITI
TEKNOLOGI
MARA
#
MEDEC
Pusat Pembangunan Usahawan Malaysia
Blok MEDEC (13)
Intekma Resort & Convention Centre
Seksyen 7, 40000 Shah Alam
Selangor, Malaysia
Tel: 603-55225485/5466/5464
Faks: 603-55225467
500,MEDC (15/2/1)
13 Januari2006
KEPADA SESIAPA YANG BERKENAAN
Tuan/Puan
PENGUMPULAN MAKLUMAT UNTUK MATA PELAJARAN ETR300
Dengan segala hormatnya dimaklumkan bahawa penama-penama yang dinyatakan
di b a w a h ini a d a l a h pelajar-pelajar Diploma In Hotel M a n a g e m e n t dari Fakulti
Pengurusan Hotel dan Pelancongan, Universiti Teknologi MARA, Shah Alam.
1.
2.
3.
4.
5.
Nama Pelajar
No. Matriks
Ahmad Nawawi Muhamad
Tajul Fitri Mohd Diah
Mohd Shahrizan Samsulbahri
Ahmad Safarin Masri
Mohd Taufik Jamri
2003237657
2003237911
2003237888
2003237895
2003237712
Pada semester ini, mereka sedang mengikuti matapelajaran Keusahawanan (ETR300).
Dalam matapelajaran ini, mereka dikehendaki menyiapkan satu tugasan menyediakan
Rancangan Perniagaan (RP) untuk dibentangkan di akhir semester.
Sehubungan dengan itu, pihak kami amat berbesar hati sekiranya tuan/puan dapat
memberikan kerjasama y a n g sewajarnya kepada pelajar berkenaan agar mereka
dapat mengumpul maklumat bagi menyempumakan tugasan yang diberikan. Sekiranya
tuan/puan memerlukan maklumat lanjut, sila hubungi pihak kami melalui nombor berikut
03-55225463.
Sekiran, segala kerjasama dan perhatian tuan/puan kami dahului dengan ucapan ribuan
terima kasih.
Yang benar
PUAN AZLINA HANIF
Pensyarah MEDEC
/la
COPYRIGHT © UiTM
BUSINESS PLAN
Tarte Cottage
No. 31,L7/L,JalanKristal,
Seksyen 7, 40000, Shah Alam, Selangor D.E
TEL : 03- 5555 3434
PREPARED BY:
Ahmad Nawawi Bin Muhamad
Ahmad Safarin Bin Masri
Mohd Shahrizan Bin Samsulbahri
Mohd Taufik Bin Zamri @ Zimri
Tajul Fitri Bin Mohd Diah
SUBMITTED DATE:
31 March 2006.
iii
COPYRIGHT © UiTM
TABLE OF CONTENTS
PAGE
COVER LETTER
COVER PAGE
TABLE OF CONTENT
IV
EXECUTIVE SUMMARY
1
SECTION 1
: INTRODUCTION
2
SECTION 2
: PURPOSE/S
9
SECTION 3
: COMPANY BACKGROUND
11
SECTION 4
: OWNER'S / PARTNER'S BACKGROUND
13
SECTION 5
: ADMINISTRATION PLAN
19
SECTION 6
: MARKETING PLAN
31
SECTION 7
: OPERATION PLAN
46
SECTION 8
: FINANCIAL PLAN
67
SECTION 9
: CONCLUSION
80
APPENDICES
82
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EXECUTIVE SUMMARY
Tarte Cottage is the proposed business based on bakery products which
focusing on various delightful tarts as its specialty to distinguish the product lines
with the existing competitors. The business will be operating at the new
developing residential area which is 7th Section of Shah Alam. It will start the
operation by 1 st January 2007 with working capital of RM 300000.
The factor of choosing this business is as the growth of bakery industry
itself and the recent trend of dining out and the demand of western products
among Malaysian. In addition, the increasing of purchasing power because of the
income level is increasing. The data of this industrial profile will be explained
further in administration plan. To establish this kind of business, it is essential to
have a systematic plan. So, through this business plan, there are four sectors to
be considered as the guideline of the whole proposed business. Administration
plan, marketing plan, operation plan and financial plan are all sectors that are
going to be interpreted in details.
Our future prospects of the business are to have a good branding and
established bakery shop. Besides, we would like to expand our business into a
chain business with numbers of shop both locally and internationally.
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Introduction
Tarte Cottage is the upcoming bakery house which has a good and bright
potential as well as welcoming bright future in food industry generally, pastries
making specifically.
As the name sounds, Tarte Cottage is specialized in offering home made
and freshly oven bake of variety delightful tarts. Going beyond that, Tarte
Cottage also offers unique pastries and cakes. To fulfill customer needs and
demands, Tarte Cottage always welcome any requisition to supply pastry
products for parties and anniversaries.
Malaysia has a population of 25 million composed of three large ethnic
groups; Malays, Chinese and Indians, accounting for respectively 66%, 26% and
7% of the total population. Various tribes living primarily on Borneo constitute the
remaining 1%. The majority of the people reside on the west coast of the
peninsular, where the capital Kuala Lumpur, Penang, Johor Bahru and Ipoh are
the most attractive business areas. The concentration of the population within
these areas, combined with a modern infrastructure system, facilitates market
entry for companies seeking to explore business opportunities in Malaysia.
The overall economic outlook for Malaysia looks very positive. After recording
GDP growth rates of 5.1% in 2003 and 7.1 % in 2004, the expected rate for 2005
continue the positive development with around 5.5 % growth. This shows that the
Malaysian economy is on the right track to recover from the economic downturn
following the Asian crisis in 1997-1998. For new companies within the bakery
and confectionery industry this is indeed very promising, as the purchasing
power of the population is rising and subsequently creating an increasing
demand for high-quality products. The Malaysian bakery and confectionery
industry is in a period of change and expanding its precincts with the shift in
consumers' preferences. In 2004 the bakery and confectionery products reached
RM 2 billion, growing at 3 % in current value terms over the previous year.
According to industry analysts, the growth can be attributed to the rising health
awareness in Malaysia. Similar to other packaged foods, such as confectionery
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products, consumers are becoming more concerned with their health.
Throughout 2005 the health trend is expected to continue to be the main driver of
growth for bakery products, in particular within the bread segment. Recent
product launches of more health-oriented products signifies the potential of value
added products in Malaysia. The current development in the industry is also a
consequence of the economic growth in Malaysia. The increasing purchasing
power has created a more western inspired demand pattern among the
Malaysian consumers, which has lead to the entry of a large number of
international fast food chains and the emergence of an abundance of foreign
products in the Malaysian retail sector. The Bakery and Confectionery industry is,
however, still to a large extend dominated by local players offering a more
traditional product assortment. This leaves a great potential for new companies
to profit on the Malaysian market. To create an overview of the business
opportunities for new companies in Malaysia, the following sections outline the
characteristics and developments of the retail sector, the franchise sector, the
hotel sector and the institutional sector.
The retail chains in Malaysia used to be fairly standardized, witnessing no
revolutionary changes. However, in the last two decades major developments
have occurred, as consumers have become increasingly conscious of the
products they purchase and the conveniences they are getting from the retail
chains. The development of large retail outlets has seen remarkable growth with
the entry of international supermarket chains, such as Cold Storage, Parkson,
and Carrefour. In addition to those convenience stores such as the retail
franchising chain 7-eleven has now established around 250 outlets throughout
Malaysia. Despite the presence of these international chains, the assortment of
bakery and confectionery remains predominantly focused on local products particularly in relation to the bread segment. The number of large bread
producers in Malaysia is actually very limited. The majority of the market is
divided between the three bakeries: Gardenia Bakery, Stanson Bakery and
Family Bakery. The current market leader is Gardenia Bakery followed closely by
Stanson Bakery. Stanson Bakery, which was established in 1999, is a relatively
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new player in the industry. During the last five years, the company has rapidly
increased its market share, witnessing more than 50% increases in annual sales.
The growth of Stanson Bakery reveals that it is possible for new entrants to
establish a strong position within this industry. Even though the health trend is
becoming more noticeable in Malaysia, the product offerings are still very limited
compared to the assortment available in Denmark. An example of this is that the
sandwich-style bread is very popular but is normally only available in a few
different varieties. In relation to the frozen segment, most of the characteristics
from the fresh-baked segment apply here as well. Again, the limited variety could
prove to be an opportunity for new companies entering the market, making it
possible to sell alternative products.
In the last twelve years the franchise industry has experienced average
annual growth rates of 16% in terms of sales and 18% in terms of outlets. In
2003, annual sales soared to more than RM 12 billion. In 2004 there were 325
franchise systems in Malaysia, totaling approximately 8,000 outlets compared to
2,500 outlets in 1998. Today, the American franchises, such as Kentucky Fried
Chicken, McDonald's, Burger King and Delifrance, dominate the franchise
industry - especially within the fast food and restaurant segments, where they
account for close to 70% of the total foreign franchise sales. Naturally this has
resulted in a high consumption of buns and other related bread products. Thus, a
possibility for new companies is to supply bread products to the fast food chains,
as the majority use pre-baked buns. Franchises such as Delifrance bake their
bread and pastries from frozen dough. As such, there is an opportunity to supply
frozen bake-off products. Another interesting opportunity for new companies is
the emergence of specialty coffee houses, which represents a rapidly growing
part of the franchise sector. In recent years an increasing number of outlets have
spawned throughout Malaysia, including international franchises, such as Coffee
Bean and the Tea Leaf, Starbucks and San Francisco Cafe. All these outlets
include bakery and confectionery products in their product assortments.
Supplying frozen bake-off bread or pastries could, therefore, be an opportunity to
pursue.
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In addition to the coffee houses, the franchise sector has seen a rapid increase in
the number of outlets specializing in bakery and confectionery products. Market
estimates suggest that there are more than 2,000 confectionary and bakery
outlets in Malaysia. Recently, there has been a rapid growth in the emergence of
so called "boutique bakeries", like BreadStory, Rotiboy Bakeshoppe and Bread to
Brad, which offer their customers a much wider products assortment than
available in the traditional bakeries or supermarkets. Other outlets specialize in
cakes. Since 1997, Secret Recipe Cafe has experienced rapid growth in
Malaysia and currently has a total of 82 outlets in Malaysia. Opportunities exist in
supplying high-quality frozen cakes to these types of franchises.
Most of the luxury hotels in Malaysia have own facilities to produce bakery
products for their catering consumption. However, in a recent interview
conducted by the embassy with the General Manager of one of Kuala Lumpur's
leading luxury hotels, it was found that more than 70% of the hotel's catering
needs are sourced from contacts and attendance at exhibitions. A survey
conducted at the Food and Hotel 2004 exhibition revealed that the category
"bakery, confectionery, flour - finished products (fresh/frozen)" was the most
popular category among the visitors. Close to 12,000 visitors expressed this
particular category as their main area of interest. In the luxury hotels, food quality
and service are important parameters, because their signature restaurants cater
to consumers in the high-end market. Products within this market segment are,
therefore, often imported to satisfy the customers' expectations. New companies
can profit from supplying high-quality bakery and confectionery products to the
luxury hotels in Malaysia.
Local players currently dominate the catering activity within the
institutional sector, which encompass public institutions, i.e. schools, hospitals,
the armed forces, etc. Targeting this segment requires local presence in
Malaysia, in form of a subsidiary or a joint venture with a local partner, because
connections are more important than parameters, such as price, variety and
quality.
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For new companies seeking to export directly from Denmark to Malaysia
opportunities are currently limited to in-flight airline catering, which is currently
one of the only market segments that are open to international companies.
As pointed out there are several opportunities for new companies to profit
within the large Malaysian bakery and confectionery industry. The previous
sections outlined some of the major possibilities within the retail sector, franchise
sector, hotel sector and institutional sector. Within the retail sector the strong
presence of modern foreign supermarket chains provides excellent distribution
channels for new companies based on bakery and confectionery products. The
recent market entry from Stanson Bakery has shown that it is possible for new
entrants to realize a substantial market share within a short timeframe. The rapid
growth of the Malaysian franchise sector offers several opportunities for new
companies. It is possible to supply fresh-baked products to the fast food chains
or frozen bake-off products to bakery and confectionery oriented franchises. The
current trend with the emergence of an increasing number of so-called "boutique
bakeries" could be seen as an opportunity in a supply perspective, but definitely
also provide inspiration for creating an original franchise. In order to target the
hotel sector it is of paramount importance that new companies attend relevant
exhibitions in Malaysia, as up to 70% of the hotels' catering needs are sourced
from contacts established here. The most interesting segment for new
companies is the many luxury hotels located in Malaysia accommodating many
international guests. The majority of the suppliers to institutional sector are local
companies, emphasizing the importance of having the right contacts. To cater to
this sector it is therefore necessary to establish a partnership with a local
company. Furthermore, it is possible for foreign companies to supply to the
Malaysian in-flight catering segment.
Tarte Cottage is located at 7th Section of Shah Alam. This blossoming
place is very suitable for an entrepreneur to start a business. Tarte Cottage is a
partnership business with a RM 300 000 as capital with RM50 000 contribution
from the partners of 5 persons. Its date of commencement will be on 1 st January
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2007. It is approximately six months period of time from now as we need time to
analyze the visibility of this future business.
The factors affecting the selection of this business is caused by the rising
of 'grab and bite' eating habit among the locals. Living in a big city of Shah Alam,
the urban dwellers are always in a hurry and everything needs to be sharp on
time. Besides, there is a wide target market here due to the popularity of the
products and the intention of introducing the various delightful as well as popular
tarts.
Our vision is to provide freshly oven bake tarts and pastries and to be the
first one to provide tarts and pastry products in this locality as the demand for
such grab and bite food is increasing. Our mission is, through providing the best
quality of tarts and pastry products we like to be the acknowledged brand of
bakery house in Malaysia within the next 5 years. Lastly, our objective is to
establish and operate the widest bakery house chain in Malaysia.
Our future prospects of the business are to have a good branding and
established bakery shop. Besides, we would like to expand our business into a
chain business with numbers of shop both locally and internationally.
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Purpose/s
The purposes of this business plan are:
a) to estimate the potential of the growth and feasibility of the planned project.
b) to attract investors and financial institutions in providing loans or financing
facilities.
c) to clarify the amount required and the purposes of the loan.
d) to provide a blueprint for the business.
e) to illustrate objectives, strategies, goals and means of the operation of the
business.
f) to be used as a principle for the management of the proposed business.
g) to distribute business resources efficiently.
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SECTION 3
BUSINESS/ COMPANY BACKGROUND
COPYRIGHT © UiTM
Business/ Company Background
Name of the Business/ Company
Tarte Cottage
Address
No. 31, L7/L, Jalan Kristal, Seksyen
7, 40000, Shah Alam, Selangor D.E
Telephone
03- 5555 3434
Fax Number/ E- Mail
03- 5545 3434
tartec@tmnet.com.my
Form of Business
Partnership
Main Activity(s)
Baking and selling various type of
tarts and pastries
Date Registration
17 January 2006
Number of Registration
000975250-B
Date of Commencement
1 January 2007
Initial (own) Capital
RM 300 000
Name of Bank
Mayban Finance
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SECTION 4
BACKGROUND OF OWNER/ PARTNERS/ DIRECTORS
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Background of Owner/ Partners/ Directors
Name of the owner/ partners/ directors
: Ahmad Nawawi Bin Muhamad
Identity card number
: 811028-04-5143
Permanent address
: No 11 Jalan Duku 3
Taman Rumpun Bahagia 75300
Melaka
Correspondence address
: 42 Seksyen 7 #616 Shah Alam
40000 Selangor
Telephone number
: 012-3255 481
Date of birth
: 28 October 1981
Age
: 25 years old
Marital status
: Single
Academic qualification
: Certificate in Hospitality Management
SHATEC
Diploma in Hotel Management, UiTM
Courses attended
: IEHA 23rd Convention
Skills
: computer literate, good in public
relations, good in graphic designing,
have basics knowledge in pastries
making, good marketing skills
: 7 years working experience in
Experiences
hospitality industry specifically in room
division department as well as food
and beverage department
Present occupation
: Executive Housekeeper
Previous business experiences
: nil
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Name of the owner/ partners/ directors
: Ahmad Safarin Bin Masri
Identity card number
:800128016097
Permanent address
: 34, Jin Bkt Kempas 2/3, Taman Bukit
Kempas, 81200 Johor Bahru. Johor
Correspondence address
: 42 Seksyen 7 #616 Shah Alam
40000 Selangor
Telephone number
: 012-9175 205
Date of birth
: 28 January 1980
Age
: 25 years old
Marital status
: Single
Academic qualification
: Higher Diploma in Culinary Arts, Le
Cordon Bleu
: 11 th World Pastry Seminar and Le
Courses attended
Cordon Bleu Advance Classical Pastry
Training
Skills
: expert in pastry making and western
cookery, good in dealing with clients
and well verse French.
: Two and a half years experienced in
Experiences
bakeries production and an instructor
for six months in Swiss Cooking
Institute
Present occupation
: Pastry Chef
Previous business experiences
: nil
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Name of the owner/ partners/ directors
: Mohd Taufik Bin Zamri @ Zimri
Identity card number
: 791206145631
Permanent address
: 207-09-05, Jalan Dato' Senu 26,
Taman SentuI Utama, 51000, Kuala
Lumpur.
Correspondence address
: 42 Seksyen 7 #616 Shah Alam
40000 Selangor
Telephone number
: 012-6485 052
Date of birth
: 6 December 1979
Age
: 26 years old
Marital status
: Single
: Bachelor in Business Management,
Academic qualification
UiTM
: Business Development Seminar
Courses attended
2003, Economic Forum 2004.
: Have a good public relations, good in
Skills
sales skill, able to speak Mandarin,
computer literate.
: 2 years working experience in sales
Experiences
and marketing.
Present occupation
: Marketing Executive.
Previous business experiences
: Running a breakfast bar.
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Name of the owner/ partners/ directors
: Mohd Shahrizan Bin Samsulbahri
Identity card number
.820211015423
Permanent address
: 12 A Kampung Baru,
Batu 5 %, Jalan Bakri,
84000 Muar, Johor.
Correspondence address
: 402 Blok 38,
Seksyen 7, 40000 Shah Alam,
Selangor.
Telephone number
: 017-6534 915
Date of birth
: 11 February 1982
Age
: 23 years old
Marital status
: Single
Academic qualification
: Diploma in Hotel Management, UiTM
Courses attended
: Business IT Seminar and Pastry
Course
Skills
: Good in pastry making, good in
art and graphic design, computer
literate, have a basic marketing
management
: 1 year working in hotel industry, 6
Experiences
months working in cyber cafe
Present occupation
: Assistant Outlet Manager
Previous business experiences
: Running a cyber cafe
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Name of the owner/ partners/ directors
: Tajul Fitri Bin Mohd Diah
Identity card number
:730622075965
Permanent address
: RB 157 A, Kg Ramuan Cina Besar,
78300 Masjid Tanah,
Melaka.
Correspondence address
: 402 Blok 38,
Seksyen 7, 40000 Shah Alam,
Selangor.
Telephone number
: 017-5991 993
Date of birth
: 22 June 1973
Age
: 33 years old
Marital status
: Married
Academic qualification
: Diploma in Banking, UUM
Diploma in Hotel Management,
Taylors College
Courses attended
: Entrepreneurship Course by MEDEC
Skills
: Business Accounting
Experiences
: 1 year Secret Recipe Shareholder.
Present occupation
: Assistant Account Executive in
Biscuit factory in Shah Alam
Previous business experiences
: 2 years working in bakery house.
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• Introduction to the Organization
Address
No. 31, L7/L, Jalan Kristal, Seksyen 7, 40000, Shah Alam, Selangor Darul
Ehsan.
Location Plan
Tarte Cottage is located at 7th Section Shah Alam, which is 7 minutes
drive from the city centre. It is near the PKNS housing and residential area.
There is some landmark near this bakery shop which can assist our customer to
find our shop and they are a primary school and a community clinic.
This 7th Section business area is comprised of food outlets, cyber cafes,
mini markets, beauty salons, workshops and the only competitor of ours is the
Kedai Kek dan Roti Sanubari. Our shop lot is situated at the last row of Jalan
Kristal, five lots away from the Kedai Kek dan Roti Sanubari.
We have chosen this location because of the easy access as it is near the
main road and strategically close to the second entrance of UiTM which can
attract flock of students and lecturers. As there are ample parking spaces for
customers, it is easy for them to drop by and grab their meal.
Another reason of choosing this particular lot is it is placed at the focus
point to the customers and low competition level.
Type of Building and Infrastructure
Tarte Cottage is a new double storey shop house lot which is spacious.
The size of this shop is approximately 17m x 4.5m and large enough to allocate
all the physical facilities and equipments. It is built of concrete, cement and glass.
The type of the flooring is a sealed wood which resembled a wood cottage. While
for the back of the house, we try to minimize accident by using terrazzo which is
non slip, sanitary and suitable for the heavy duty works. It is built with electricity
power point as well as water taps. Besides it is also have a good drainage
system which is important for hygienic purposes. Other than that, it is equipped
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with air conditioner which controlled the air circulation, humidity and cooling of
the air. While an exhaust fan system which fix in the kitchen helps to eliminate
cooking odors. Other infrastructures attached are telephone and internet lines
facilities. The rental cost of this building is about RM 900 per month.
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• Organization Chart
To ensure the smoothness of this business, the existence of authority
should be given attention. This can be interpreted by the outline of the
organization chart. Tarte Cottage practiced the organization chart based on
functions as below:
GENERAL
MANAGER
AHMAD NAWAWI
MUHAMAD
I
I
I
1
FINANCE
OFFICER
SALES AND
MARKETING
EXECUTIVE
PURCHASING
OFFICER
OPERATION
OFFICER
MOHD SHAHRIZAN
SAMSULBAHRI
AHMAD SAFARIN
MASRI
TAJUL FITRI
MOHD DIAH
MOHD TAUFIK
ZAMRI
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