i

NATIONAL UNIVERSITY OF MALAYSIA

FACULTY OF ENGINEERING AND BUILT ENVIRONMENT
DEPARTMENT OF CHEMICAL AND PROCESS ENGINEERING

BUSINESS PROPOSAL
S-TECHNOLOGY
TECHNOLOGY SDN. BHD.

GROUP 20 MEMBERS:
HASLIZAH ABDUL GHAF
FAR
MOHD NAZMI B. MAT SALLEH @ AB. HAMID
GOH YING NGIAP
TAN FU YANG
DUE DATE: 1st DECEMBER 2010

A119024
A118298
A117429
A116808

JKAS
JKMB
JKEES
JKKP

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LIST OF CONTENT

LIST OF CONTENT

1.0

EXECUTIVE SUMMARY

2.0

VISION, MISSION AND MANAGEMENT TEAM

2.1

Vision

2.2

Mission

2.3

Management Team

2.4

Ownership

3.0

MARKET SUMMARY

3.1

Current State Of The Industry

3.1.1

Economic and Market Condition

3.1.2

Evolution of New Technology

3.1.3

Increase Demand for Printing and Extra Services

3.1.4

Cost Effectiveness

3.2

MARKET SEGMENT

3.2.1 Geographic segmentation

3.2.2 Demographic segmentation

3.2.3 Psychographic segmentation

3.2.4 Behavioral segmentation

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4.0

PROBLEM AND OPPORTUNITIES

4.1

Customer

4.1.1 Customer Buyers Needs And Preferences

4.1.2 Customers Buying Motives

4.2

SWOT Analysis

5.0

BUSINESS CONCEPT

10

5.1

General Description Of The Business

10

5.2

Industry Background

11

5.3

Company Logo

12

6.0

COMPETITION

12

6.1

Industry Competition

12

6.2

Competition And Competitive Advantages

13

6.2.1

Major Competitors

13

6.2.2

Competitive Advantages

15

7.0

GOALS AND OBJECTIVES

15

7.1

Goals

15

7.2

Objectives

16

8.0

FINANCIAL PLAN

17

8.1

Financial Model

17

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8.2

Estimates Material Cost And Pricing

17

8.3

Financial Forecasting

19

8.4

Break-Even Analysis

21

9.0

RESOURCE REQUIREMENTS

22

9.1

Technology Requirements

22

9.2

Personnel Requirements

23

9.3

Location

23

9.4

Promotion

24

9.5

Services

25

9.5.1

Inventory Control

25

9.5.2

Customer Service

25

10.0

RISKS

26

10.1

Addresing Risks

26

10.1.1 Employee Risks

27

10.1.2 Technology Risks

27

10.1.3 Market Risks

27

10.1.4 Financial Risks

27

10.1.5 Time Risk

28

Rewards

28

10.2.1 Start Up Requirement

28

10.2.2 Funding Investment

29

10.2

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10.2.3 Current Liability

29

11.0

CONCLUSION

30

11.1

KEY ISSUE

30

11.1.1 NEAR TERM

30

11.1.2 LONG TERM

31

1
1.0.

EXECUTIVE SUMMARY

S-Technology Sdn Bhd is a private company which will be built up at Shah Alam
Malaysia. Hereby, we would like to introduce a smart printer which has the characteristic of slim,
smart and speed by using high technology.
Motives for entering the business enterprise are fame and recognition, personal financial
gain, great challenge, to fulfill needs that have not yet been met and to create value in the lives of
customers. These motives encourage producing a printer which fulfills demand and convenience
of customers. Moreover, we are willing to take risk and challenges in our business.
The goal is to build upon the trust of the customer and contribute to the continuous
growth in market share and some of the objectives are to contribute the effort with hard work and
diligent, invest our best effort in everything undertaken, keeping in-line with the latest
technology, provide our clients with the best services and supports,
Target market will be salesman, universitys students, businessman, realtor, insurance
agent and for those working out of office. The startup capital is about RM1,600,000. These
amount is split among the team members and financing with local bank.

2
2.0

VISION, MISSION AND MANAGEMENT TEAM

2.1

VISION

S-Technology Sdn Bhd have dedicate ourselves to become the global leader in providing
a leading-edge, integrated intelligent solution and leading company in smart printing and
technology environment.

2.2

MISSION

S-Technology Sdn. Bhd is highly committed in providing a Slim, Smart and Technology
products. Furthermore, we also providing users friendly products and services to our partner by
encouraging them towards a change in lifestyle and eventually, inspiring them to embrace a
digital environment.

2.3

MANAGEMENT TEAM

S-Technology Sdn Bhd was established by four members who have establish with various
skills and work experience runs from manufacturing, international marketing, and finance to
small business entrepreneurship. All of the team members, who bring in complementary skills
and a wealth of experience in the management of new and growing business, and they also share
their part as members of Board of Directors. S-echnologys management teams consist of:

3
1. TAN FU YANG
Chief Executive Officer

2. MOHD NAZMI MAT SALLEH

Chief Marketing Officer

3. HASLIZAH ABDUL GHAFAR

Chief Financial Officer

4. GOH YING NGIAP

Chief Operation Officer

2.4

OWNERSHIP

S-Technology Sdn.. Bhd was registered with paid

paid-up capital of RM1,600,0
600,000 among the
team members and financing with Public Bank. Tan Fu Yang was holding the highest
percentage of the ownership. Paid
Paid-up capital will be as shown in the figure below:
Haslizah
20%

Goh Ying
Ngiap
20%

Mohd
Nazmi
25%
Tan Fu
Yang
35%

Figure 22.1: Percentage of Ownership

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3.0

MARKET SUMMARY

3.1

CURRENT STATE OF THE INDUSTRY

3.1.1

Economic and Market Condition

Economic recovery is on the way. Current figures and forecasts show Indonesia, Thailand,
and Malaysia will enjoy relatively large growth in technology industries. Our company seeks to
co-operate with these nearest country because it will open up our market in others country. Also,
we plan to seek low cost supplier and low cost resources in these country to better compete with
others competitors.

3.1.2

Evolution of New Technology

The evolution of these new trends and technologies in the printing industry will bring
fresh challenges and opportunity. We must ensure that unrewarding old processes and workflow
habits will have to be shelved and more productive ventures into rewarding and new technologies
to remain competitive and successful in the next millennium.

3.1.3

Increase Demand for Printing and Extra Services

Demand of services other than selling products had been increasing recently. We will
provide services such as warrantee, services after sales and enquiry information need to provide
for customer to meet customer satisfaction.

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3.1.4

Cost Effectiveness

Companies across the industry are experiencing increased competition in the market and
tremendous pressure to decrease prices. So, we always put emphasis on low cost production by
doing the right things at the first time. This will reduce rework job and wastage when producing
our products.

3.2

MARKET SEGMENT

3.2.1

Geographic segmentation

Our country had multi-national, global businesses and brands. However, geographic
segmentation such as region, climate, and population density does not influence our market
segment.

3.2.2

Demographic segmentation

We had dividing the market into groups based on variables such as age, gender family
size, income, occupation, education, religion, race and nationality.

3.2.3

Psychographic segmentation

We also divided the market into groups according to customers lifestyles. Though here,
we can indicate what people do, their activities, their opinion, and their buying behavior.

6
3.2.4

Behavioral segmentation

This element is very important because there are closely related to the product itself and
based on actual customer behavior toward products. We had indicated some information about
benefits sought, usage rate, brand loyalty, user status, readiness to buy, and occasions through
user preferences and opinion.

4.0

PROBLEM AND OPPORTUNITIES

4.1

CUSTOMER

4.1.1

Customer Buyers Needs and Preferences

Costumer needs motivate people to act. Understanding how buyers satisfy their needs
provides guidelines for our marketing action. We understanding that consumer acquire
satisfaction through product function, price, quality, and durable.
Daily activities of people almost influence them to have an own printer. For example, a
salesmans need to print out the product specifications, cost, advantages which need to show to
customer to achieve their sales. All of this kind of activities requires a printer able to bring to
anywhere and use in anytime.
Brand Loyalty is the consumer's conscious or unconscious decision, expressed through
intention or behavior, to repurchase a brand continually. In order to create brand loyalty, we
need to break consumer habits, help them acquire new habits, and reinforce those habits by

7
reminding consumers of the value of their purchase and encourage them to continue
purchasing those products in the future.

4.1.2

Customers Buying Motives

Buying Motives
Portable
Function
Price
Quality

Figure 4.1: Customers Buying Motives

From the figure above,

ve, it shows that that the portable is a major factor when consumer
selecting our Smart printer. Prospect consumer indicates that easy bring to everywhere and
extremely small size is a basic element when they choose the new technology printer.
Ready and easy to use are the second factor encourage consumer buying our Smart printer.
Just connect it to our computer/device via USB, additionally there is an OLED screen to displays
the printing status. Besides that, touch screen enable user choose a variety of language such as
English, Chinese, Japanese and even Bahasa Melayu. Although a person is not technology
literacy, they are ability to use it. Bluetooth function enable user to print out their documents
without USB cable. User only needs to install softwa
software
re in their laptop, after that printer will
detect automatically when receive command from laptop. It surely bring a big convenient for our
prospect consumer.

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4.2

SWOT ANALYSIS

Strengths- S

Weaknesses- W

1. S-Technology

printer

is 1. Lack

slim, smart, and high speed

by using new technology.
2. Strategically

of

manufacturing location.

in

managing company.
2. Reputation

of

experience

of company is

new in the market.

3. Financial weak because we

3. Low cost of production.

are emerge company.

4. Enable charges premium of 4. Depend on single product

price because we gain first

line.

mover advantage.
5. Strong distribution channel.
6. Promotion and advertising.
Opportunities- O

SO STRATEGIES

1. Economics recovery.

1. Economic recovery enhances 1. Seek

2. Growing

population

and

higher education people.

3. Increase switching costs for
competitors.
4. Changing customer needs
and preferences for printer .

the

buying

perspective

WO STRATEGIES
for

advisory

and

power

of

consultant opinion in manage

customer,

so

business. (W1, O2)

charges the premium price 2. Worldwide sales to increase

for

our

increase

printer
our

able

cash

to
flow

moving. (S4, O1)

5. Technology has changed 2. S-printer meets the demand

our financial performance.

(W3, O7)
3. Expand
future.

product

line

in

9
expeditiously

over

the

years.

due

to

the

growing

population changing lifestyle

6. Changing

lifestyle,

of people. (S1, O2, O4, O6)

activities and attitudes of 3. Strategically

consumer.

locations

manufacturing,

7. Worldwide sales.

and

advertising

of

promotion
able

to

worldwide sales. (S2, S7,O7)

4. Increased switching cost for
competitors enable us to gain
large

market

with

low

production cost. (S3, O3)

ST STRATEGIES

Threats- T
1. Customer loyalty

WT STRATEGIES

toward 1. Changing customer loyalty

certain brand.
2. Increasing prices of raw
material in current market.

4. Imitate
competitors,
challenges.

product

by
legal

low

cost

raw

and habit to our Smart printer

materials in other country.

through

(T2)

promotion

and

advertising. (S1, T1, S7)

3. Life cycle of technology 2. Charges premium price for

products become shorter.

1. Seeking

2. Increase
company

reputation

of

by

an

hiring

our printer because life cycle

advisory who have power

technology become shorter in

influence

today (S4, T3).

market.(W2)

in

the

3. Seeking others resources for

financial help. (W3)

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5.0

BUSINESS CONCEPT

5.1

GENERAL DESCRIPTION OF THE BUSINESS

S-Technology Sdn Bhd is a new company and involve in manufacturing which produces a
multi functions printer to public. S-Technology Sdn Bhd estimated running business in year 2011.
The company name has been registered under Company Act 1965. S-Technology Sdn Bhd was
originally registered with paid-up capital of RM1,600,000 split among the team members and
financing with Public Bank. S-Technology Sdn Bhd is located at Shah Alam Malaysia.
Organization bound by several rules and regulations. A company has an existence
independent of its members therefore it can sue and be sued by others. Companies and their
activities are directly regulated by the Corporations Law. The Corporations Law controls most
aspects of a company's formation, business and winding up and must be carefully considered.
Moreover, the death, retirement or other withdrawal of a member will not terminate the company
and may not even require any reorganization of the company's operations. The company also is a
separate legal entity; thus, it pays tax. Companies are taxed at a flat rate, which is significantly
lower than the upper ranges of the marginal tax rates applying to individuals. If the company
makes significant profits, there can be a large tax saving.
S-Technology Sdn Bhd management team has been established by four members, who
have over 6 years experience and distinct skills in operation, international marketing, finance and
management. Moreover, we have excellent interpersonal skills and are a great collaborator with
an open design process. With these distinct skills and uniqueness printer, we hope to become a
leading company in the market.

11
S-Technology Sdn Bhd has established a quality management system that placed great
emphasis in achieving consistent high quality in its products. Consistent high quality in products
and good customer service are vital factors for S-Technology Sdn Bhd to compete successfully in
the international market.
Nowadays, printer is playing very important role in our life especially for workman.
Therefore, customers will buy the printer without any hesitation. However, S-printer in the
market and it is different with other competitors printer, it has many others functions such as
bluetooth, touch screen, setting for multiple languages and adjustable to standard size.

5.2

INDUSTRY BACKGROUND

In Malaysia, there are a lot of companies dealing with printers product and Canon is one
of our major competitors. Although there are many competitors in printer industries in Malaysia
but there are few competitors may produce portable printer. Other countries like China and Japan
produce cheaper products than us and we found that it is necessary to modify the printer to
achieve a better performance on the customers works. Since printer had changed to emergency
usage, customers demand for printer increases.
It has become challenges for us to introduce a new model of printer into the future market.
However, through our R&D strategies, we may produce higher quality and technologies product
than other producer. In addition, through our business strategy, we capable compete with them.
Therefore, our business has great potential to be growth in Malaysia. Our business concept is
come from our survey. We believe our company will be successful become leading company and
greatest printers producer not only in Malaysia.

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5.3

COMPANY LOGO

We designed a distinctive logo of printer. It formed from three basic color which are red,
yellow and blue. The S represent company name and mean slim, smart and speed. It symbolic
this company will produce a slim, smart printer with high speed when used.

6.0

COMPETITION

6.1

INDUSTRY COMPETITION

In Malaysia, there are a lot of companies dealing with printers product and Canon is one
of our major competitors. Although there are many competitors in printer industries in Malaysia
but there are few competitors may produce portable printer. Other countries like China and Japan
produce cheaper products than us and we found that it is necessary to modify the printer to
achieve a better performance on the customers works. Since printer had changed to emergency
usage, customers demand for printer increases. It has become challenges for us to introduce a
new model of printer into the future market. However, through our R&D strategies, we may
produce higher quality and technologies product than other producer. In addition, through our
business strategy, we capable compete with them. Therefore, our business has great potential to
be growth in Malaysia. Our business concept is come from our survey. We believe our company

13
will be successful become leading company and greatest printers producer not only in Malaysia
but in Asian too.

6.2

COMPETITION AND COMPETITIVE ADVANTAGES

6.2.1

Major Competitors

Sales

Revenue
Canon

Canon

HP

HP

Lexmark

Lexmark

Epson

Epson

Figure 6.1: Revenue (RM)

Figure 6.2: Sales (RM)

a. Canon

Ever since Canon Marketing (M) Sdn Bhd was established in 1987, it has become a major
corporate player in Malaysia. Canon in Malaysia has now more than 20 years of success, 20
years of non-stop product launches, 20 years of commitment from employees, 20 years of
support from customers, 20 years of passion and drive from business partners.

14
b. HP

HP is a technology company that operates in more than 170 countries around the world.
They explore how technology and services can help people and companies address their problems
and challenges, and realize their possibilities, aspirations and dreams. They offer consumers a
wide range of products and services from digital photography to digital entertainment and from
computing to home printing.

c. Lexmark

Since inception in 1991 as a spin-off of IBM, Lexmark has become a leading developer,
manufacturer and supplier of printing and imaging solutions for offices and homes. Lexmark is
the only player in the industry which is exclusively focused on distributed output. Lexmark's
products are sold in more than 150 countries in North and South America, Europe, the Middle
East, Africa, Asia, the Pacific Rim and the Caribbean.

d. Epson
Epson Malaysia Sdn Bhd has the exclusive rights to the marketing and distribution of the
complete range of EPSON products in Malaysia and Brunei. It is a brand thats internationally
recognized as a market leader. Epson Malaysia Sdn Bhd, with strong support from their
principals in Japan, is committed to the high standards of excellence.

15
6.2.2

Competitive Advantages

a) First mover advantage

Technology has changed expeditiously over the years, and it advances with a geometric
progression rather than an arithmetical one. Every technology product we use daily is getting
smaller and smarter each day. There are quite a few portable printers out there but none is like
our Smart printer as small and tiny. This portable printer was not designed to handle heavy loads,
but it can be very useful for printing on-the-go. Smart printer is a portable printer concept enables
user to print their documents anywhere and anytime. It is still not commercially available.

b) Strategic dealer network

Our distribution channel takes into account a strong dealer network. Throughout Malaysia,
S-Technology Sdn Bhd resellers provide a professional pre sale and after sales service.

7.0

GOALS AND OBJECTIVES

7.1

GOALS

S-Technology Sdn Bhd goals for the first five years of operation: As the popularity of printer
continuous to grow exponential rate, easy and affordable for every customer is quickly becoming
a necessity of life. S-Technology Sdn Bhd is highly committed in providing a slim, smart and
high speed printer by using new technology. S-Technology Sdn Bhd is to dedicate ourselves to
become the global leader in providing a leading-edge, integrated intelligent solution and leading

16
company in smart printing and technology environment. Furthermore, we also providing users
friendly products and services to our partner by encouraging them towards a change in lifestyle
and eventually, inspiring them to embrace a digital environment.

7.2

OBJECTIVES

S-Technology Sdn Bhd is a contribution to the hard work and diligence by us, based on the
following objectives:

Provide our clients with the best services and supports, where we take integration as our
core business strategy to integrate multiple components to one simple and user-friendly
printer.

Slim, smart, high speed and portable printer at a reasonable price.

To fulfill our clients needs and thus providing us a path to create better products and
solutions tailored to our clients lifestyle.

Through innovations within our employees, we find the perfect solutions suited for each
of our clients and keeping in-line with the latest technology.

We invest our best effort in everything we undertake and take pride in honesty and
integrity in everything we do.

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8.0

FINANCIAL PLAN

8.1

FINANCIAL MODEL

The initial business model of S-Technology Sdn. Bhd show as below:

Table 8.1 Initial Model of S-Technology Sdn. Bhd

(RM)
Assets

400,000

Cash In Bank

700,000

Loan from Bank

300,000

TOTAL

8.2

1,400,000

ESTIMATES MATERIAL COST AND PRICING

The following table is shows the cost estimates for a unit of printer.

Table 8.2 Cost Estimates for a Unit

MATERIAL USING

COST PER UNIT

PVC

1.00

Arc chip inject printer

2.50

COMS Battery

4.00

Battery Clip

0.50

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USB Printer Cable 1.2M, Floppy Cable

3.00

USB Bluetooth Adapter

20.00

Canon BCI-3E Ink Cartridge

33.00

Aluminum

0.60

Touch screen

1.20

Direct Labor

20.00

Cost Overhead:
Electricity

2.50

Others

7.20

Total

95.50

According to the table above, the sales price estimates is RM 165 per unit. The quantities of
printer which can be produced in a year are estimate in 7000 units. The cost spent is showed as
Table 8.3 below:

Table 8.3 Cost Estimates for 7000 Units

MATERIAL USING

COST PER UNIT

RM
7 000 UNITS

PVC

1.00

7,000

Arc chip inject printer

2.50

17,500

COMS Battery

4.00

28,000

Battery Clip

0.50

3,500

USB Printer Cable 1.2M, Floppy Cable

3.00

21,000

19
USB Bluetooth Adapter

20.00

140,000

Canon BCI-3E Ink Cartridge

33.00

231,000

Aluminum

0.60

4,200

Touch screen

1.20

8,400

Direct Labor

20.00

140,000

Electricity

2.50

17,500

Others

7.20

50,400

95.50

668,500

Cost Overhead:

Total

8.3

FINANCIAL FORECASTING

To estimate the cost earn and expense for a year, S-Technology Sdn. Bhd. estimates around
20,000 units of printers have been produced. Table 8.3 below is shows the cost analysis from
year 2010 until 2013.

The sales will increase from year 2010 2012 due to the new technology and new
products been established compare to other competitors. At year 2013, the sales will decrease
because the competitors start to produce the same product by using the same technology. The
salaries expenses are increased every year due to the increasing salaries to workers and hire more
workers for research and development new products. High utilities expenses at initial but will
decrease when the business and production become stable. Maintenance fee is depending on the
production and machines work life.

20
Distribution expenses will increase from year 2010 2012 but will decrease when year
2013 because the market sales are decrease due to the decrease in demand of S-Technology Sdn.
Bhd. printer. Promotion expenses will increase at the initial but decrease when year 2012 due to
the stable in market demand. Transportation fees will increase every year due to the increasing of
petrol price every year and transport the products to more places.

The net profit can be shown at Table 8.4.

Table 8.4 Profit Analysis from Year 2010 2013

2010

2011

2012

2013

(RM)

(RM)

(RM)

(RM)

3,100,000

3,500,000

3,950,000

3,760,000

668,500

675,000

680,000

690,000

2,431,500

2,825,000

3,270,000

3,070,000

Salaries

300,000

350,000

390,000

420,000

Utilities

100,000

110,000

105,000

105,000

Maintenance

88,000

95,000

105,000

100,000

Insurance

35,000

35,000

35,000

35,000

Interest

330,000

330,000

330,000

330,000

Distribution

100,000

140,000

190,000

180,000

Rent

130,000

132,000

132,000

132,000

Promotion

300,000

400,000

350,000

350,000

Estimates Net Sales

-

Cost Material

Operating Expenses

21
Transportation

45,000

51,000

55,000

60,000

Others

80,000

85,000

83,000

88,000

1,508,000

1,413,000

1,775,000

1,800,000

Profit

923,500

1,412,000

1,495,000

1,270,000

148,525

211,800

224,250

190,500

774,975

1,200,200

1,270,750

1,079,500

Total Expenses

Income Tax (15%)

Net Profit

8.4

BREAK-EVEN ANALYSIS

Total Fixed Cost = Maintenance + Rent + Utilities + Insurance + Interest

= RM 88,000 + RM 130,000 + RM 100,000 + RM 35,000
+ RM 330,000
= RM 683,000

Total Variables Cost = Salaries + Distribution + Promotion + Transportation

+ Others expenses + Cost Material
= RM 300,000 + RM 100,000 + RM 300,000 + RM 45,000
+ RM 80,000 + RM 668,500
= RM 1,493,500

Cost variable per unit = RM 1,493,500 / 20,000 unit

= RM 74.68

22
Break-even point in unit = Total Fixed Cost / (Revenue cost per unit - Cost variable per unit)
= RM 683,000 / ( RM 165 - RM 74.68)
= 7562 unit

Break-even point in RM = 7562 unit X RM 165

= RM 1,247,730

9.0

RESOURCE REQUIREMENTS

9.1

TECHNOLOGY REQUIREMENTS

From the basic design of printer in S-Technology Sdn Bhd, technology nowadays was needed
have Bluetooth technology, OLED or touch screen technology, rechargeable battery and etc. First
of all, the these technology were bought license from other company like SONY and HP.
Research and development in S-Technology Sdn Bhd will install these technology in the printer.
The chips and materials needed for these technologies will be bought from suppliers.
To increase the productivity of printer, S-Technology Sdn Bhd will buy the printers from
contractors company by supply the printer design for the company. Receiving is the ultimate
responsibility of the operation manager, the automatic connection with supplier makes the task of
operation manager become much easier in purchasing materials. The material for cover of printer,
PVC will buy from suppliers outside. Malaysia has a high supply for plastic PVC and it easy
been found anywhere.

23
The other technology needed is the rechargeable battery for printer which can be used
when no electricity. This battery will be produced with other contractor companies which
produce the input and output of electricity from our design.

9.2

PERSONNEL REQUIREMENTS

Electrical engineers are needed to design the installation of printer by combine the few of
technologies. They also need to research the new technology and modify the printer to improve
the quality and efficient of the printer. Mechanical engineers also needed to handle the machine
in production line. Besides that, it needs some creative designer to design the modern printer
which can attract the customers and help to increase the sales. Company will connect with
institute and university to hire the employees which fulfill the requirements.
The job like clerk, accountant, purchaser, sales and marketing, cleaner also needed in a
company to handle the sales and purchase the raw materials. Besides that, it need contractor
transporter to deliver the products. Good transportation is important to consider the costs of both
transporting supplies to the manufacturing location and shipping the finished product to
customers. Skill technician also needed to show and explain with customer. They also needed
service the customer if had problem when used by customers.

9.3

LOCATION

To choose a good location for company, some conditions have been alert like customer
accessibility. Customer accessibility is generally an important consideration in selecting location.

24
It also help to increase sales where the places of accessed by customers. The targets and prices of
customers also important in decide a printer which can be used in office or home.
Second issue is business environment which includes the competition, legal requirements,
and tax structure. These elements will influence our business success in future. Try to establish
company in enterprise zones in order to bring jobs to economically deprived areas. These zones
lure business by offering regulatory and tax relief.

9.4

PROMOTION

Advertising is one of the promotion skills. To advertise the product effectively, television
become the main media and newspaper advertisement is the secondary media. Popular TV media
have been choosing such as TV3, NTV7, 8TV and Astro. The newspapers choose included The
Star, Sinchew Daily, Nan Yang Siang Pau, Berita Harian and Utusan Malaysia.

Brochures or booklets as another promotion skill will contain attractive and necessary
information about the products. These can encourage potential buyers to find more details about
the product. Brochures or booklets are issued to citizens around the shopping centre and shops
which sold the products.
Internet is another latest technology which efficient and cheap. SMART Technology will
prepare a website about the company and products which customers easy to access it. Besides
that, company will advertise about the latest product at few social website such as msn, facebook
and friendster or others famous forums like Cari to attract prospect customer.

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Exhibition at some shopping center and Pikom PC fair is a good promotion skill. The
customers can understand more about the products from the promoter and can make a smart
choice due to the high competitive there.

9.5

SERVICES

9.5.1

Inventory Control

All sales are monitored on an ongoing basis with the data information linkage from retailer.
Operations manager have responsible for handle inventory control such as barcodes, and
potentially RFID tags, to provide automatic identification of inventory objects. This system
automates a sales order fulfillment process. Real time inventory control systems use wireless,
mobile terminals to record inventory transactions at the moment they occur. A wireless LAN
transmits the transaction information to a central database. These can help for the security system
too.

9.5.2

Customer Service

Customer service is designed to monitor customer feedback. E-mail feedback that requires certain
questions to be answered as a prerequisite to submitting the e-mail transmission. Company is
willing to give feedback for the customer if they face any problems in using our printer as fast as
we could.

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Technician has been provided if the customer faced the problems. A few technicians are
needed which can handle the customer around the Malaysia. The technicians will visit the
customer directly to help to solve the problems.

The guarantee of product provided is along one year and customers have the rights to
return and refund the products for acceptable reason within this period. All customer call will be
directed to our administrative assistant/receptionist.

10.0

RISKS

10.1

ADDRESING RISKS

Our success depends in part on our ability to develop and introduce new products as the first
mover in order to keep pace with competing technologies. However, our manufacturing may
bring in strong competitor such as, Canon, Hp, and Lexmark. In spite of that, we also associated
challenges in the attributes of cost, capacity and reliability.
To achieve consistent success with our customers, we have to balance several key
attributes such as time-to-market, time-to-volume, quality, cost, service, price and a broad
product portfolio. Our operating results will be adversely affected if we fail to:

1)

Maintain overall quality of products in new and established programs

2)

Produce sufficient quantities of products at the capacities our customers demand while
managing the integration of new and established technologies

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3)

Develop and qualify new products that have changes in overall specifications or features
that our customers may require for our business needs

4)

Obtain commitments from our customers to qualify new products, redesigns of current
products, or new components in our existing products

5)

Obtain customer qualification of these products on a timely basis by meeting all of our
customers needs for performance, quality and features

10.1.1 Employee Risks

Will we able to ramp up quickly enough and attract the key personnel required to execute
the planned marketing and sales programs?

Are we having enough skilled personal?

10.1.2 Technology Risks

What happens if our core technology does not remain unique in the marketplace?

Are our technologies easy to imitate?

What we could do for the rapidly changing conditions in the technology industry?

10.1.3 Market Risks

Will customer like our product?

If the market is growing, what we should do for continue to grow in the future?

What happen if our product does not accept by the market?

10.1.4 Financial Risks

Will we be able to get the required capital?

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Will we meet your cash flow obligations?

Are we able to handle if interest rates increase?

Will the fluctuations in currency exchange rates happen in the future?

10.1.5 Time risk

Will we produce smart printer in short time?

How many years that we can start earning money from printer market?

Thus, we need to consider all the above matter for the success of our enterprise.

10.2

REWARDS

10.2.1 Start Up Requirement

a) Set-up expanses

Legal

RM700

Consultant

RM2000

Insurance

RM1000

Rent

RM1500

Computer system

RM1000

Communication line

RM800

Fixture

RM700

TOTAL SET-UP EXPANSES

RM7700

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b) Set up asset needed

Cash balance on starting day

RM5000

Start up inventory

RM2000

TOTAL SET-UP ASSET

RM7000

10.2.2 Funding Investment

Cale bruckner

RM1000

John underwood

RM1000

Wilson

RM2000

TOTAL INVESTMENT

RM4000

10.2.3 Current liability

Account payable

RM 0

Current borrowing

RM4570

Other current liability

RM1000

TOTAL CURRENT LIABILITY

RM5570

LOSS AT SET UP

RM7700

TOTAL CAPITAL

RM3700

TOTAL CAPITAL AND LIABILITY

RM9270

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11.0

CONCLUSION

As a startup company, we are facing many challenge such as finding capitals, suppliers,
and location. Anyways, we believe our channels through the retailers, distributors and sellers can
brings together the successful trends of social networking. With the rich experience of our
advisor and consultant, we believe them can bring us towards successfully. With the great
promotion in our uniqueness printer through financially support by our company, we believe that
we can success in launching our printer and gain profit. It is very important for us because it can
build our company image and affect our next product to be successful in the market. With the
effort and persistency our team member, it enables us to achieve our mission. In future, we hope
to become a leading company in the market and bring our company towards global market.

11.1

KEY ISSUE

11.1.1 Near term

As a starting company, we are going to begin our marketing strategy in our local market by
concentrating on increasing our smaller business accounts. To increase our cash flow, we not
offer promotion price at our started sales. Besides that, we hope to charge premium price from
our products because we have first mover advantages. Other reason is we are in faster changing
technology industry, our product maybe imitate by future competitors. Therefore, before our
competitors offer more comprehensive product than us, we hope to charges premium at first.

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11.1.2 Long term

We only make discount for our product in second and fourth quadrant because between these
periods is launching PIKOM PC Fair around Malaysia, so we hope can gain biggest market share
from that. By the way, we estimated that our sales will be drop because our competitors will use
some strategy to get back their market share.

Consequences of decision postponement

More expenses such as employee salary, bill electricity.

Lower efficiency in production line.

Delay other project

Over budget

Miss the golden opportunity in investment

Make investor or share holder less confident to our company