FUNDAMENTAL OF ENTREPRENEURSHIP

ETR300
Prepared for:
MISS NURHIDAYAH KHALID
Prepared by:
NUR SYAHEERA YUNUS (2006251849)
NIK MUNIRAH NIK HASSAN (2006251266)
SARRA NADIRA SAIFUDDIN (2006252549)
SYAFIQ B ANTHONY NOEL MAGNESS (2006250172)
ABDUL AZIZ AZIZAM (2006250947)
DATE:
21st of October 2008

NUR SYAHEERA YUNUS (2006251849)

NIK MUNIRAH NIK HASSAN (2006251266)
SARRA NADIRA SAIFUDDIN (2006252549)
ABDUL AZIZ AZIZAM (2006250947)
SYAFIQ B ANTHONY NOEL MAGNESS (2006250172)
MISS NURHIDAYAH BINTI KHALID
Faculty of Media and Communication Studies
UiTM Melaka
Date: 21st October 2008
Dear Sir/Madam
THE SUBMISSION OF BUSINESS PLAN
We are submitting herewith, the BUSINESS PLAN TAPAI SEDAP ENTERPRISE which has b
een prepared in partial fulfillment of the requirement for the ETR300 Fundamenta
l of Entrepreneurship.
We also hereby declare that the work contained in this report is original and ou
r own except those duly identified and recognized.
We hope you will find everything to your satisfactory
Yours sincerely
SYAFIQ B ANTHONY NOEL MAGNESS
2006250172

NUR SYAHEERA YUNUS

2006251849
NIK MUNIRAH NIK HASSAN
2006251266

SARRA NADIRA SAIFUDDIN

2006252541

ABDUL AZIZ AZIZAM

2006250947

Agreement of Partnership
Partner is stated that this agreement was made between us partners in according
to the Partnership Act. This agreement is made to control the flow of our partne
rship and to act as the guide in running the operations of our organization unde
r the registration of Business ordinance 1966.
Terms and conditions of partnership
1. The agreement is for 5 years and will be reevaluate after it expired
2. If one of the partner dies, then the heir to the partner can stake a cla
im of the partner can stake a claim of the profit earned
3. Also be summoned to pay the losses suffered with the agreement of the ot
her partners.
4. If the partner plans to withdraw from the organization, a notice needs t
o be given a month before hand
5. the divisions of profit and the losses will be distributed according to
the capital contributed
6. All partners are responsible of their respective tasks to develop the or
ganization.
7. In case of loss, it is the partner s duty to share the losses, which inclu
des assets of organization and the partner s personal wealth.
8. This agreement can only be cancelled with the consent of the entire part
ner
9. This organizations assets cannot be used for the partners own sell inter
est

Consented by: Signature

SYAFIQ BIN ANTHONY NOEL MAGNESS _______________________
NIK MUNIRAH BT NIK HASSAN _______________________
SARRA NADIRA BT SAIFUDDIN _______________________
NUR SYAHEERA BT YUNUS _______________________
ABDUL AZIZ BIN AZIZAM _______________________

TAPAI SEDAP SDN.BHD

No.33-1 & 33-2, Jalan Wira Ria,Ayer Keroh Country,76300 Melaka.
Tel: 06- 55415461 Fax: 06-55415463

BUSINESS PLAN

DATE: 21st of October 2008

TABLE OF CONTENTS
ITEMS PAGE NO
Executives Summary
Section 1: Introduction/Business Overview
Section 2: Purpose/Objectives
Section 3: Company Background
Section 4: Partners/Members Background
Section 5: Business Location
Section 6: Administration Plan
Section 7: Production / Operational Plan
Section 8: Marketing Plan
Section 9: Financial Plan
Section 10: Conclusion/ Justification
Appendices
8
9
11
12
14
18
20
27
46
58
73
74

EXECUTIVES SUMMARY

Tapai Sedap Sdn.Bhd is a form of partnership business. Our Company is famous for
food production. The product that is going to put on the market is Tapai, a fam
ous traditional food from the Malay culture. The name give for this product is Ta
pai Sedap . This product has a big potential and the target audience is large and
attractive. In this case, profit making from this business of tapai is good.
To ensure the success of our business, we will carefully research and execute ou
r business plan in the most powerful method ever. We are targeting specific segm
ents in the consumer and business market, taking advantage of opportunities desi
gnated by higher demand for affordable beauty product with newer and bolder appr
oach and ground-breaking product.
The business must be effective and the plan will bring out profit to our clients
as we will come out with various effective strategies. The marketing strategies
will be our guideline for our company to increase the sales and therefore to ga
in as much profit and besides giving a good services especially for our customer
.

1.1 Name of business

The name of the business is TAPAI SEDAP SDN.BHD
1.2 Form of business
TAPAI SEDAP SDN.BHD is form of partnership and is a private limited company.
1.3 The Location
The location of the business is at No.33-1 & 33-2, Jalan Wira Ria,Ayer Keroh Cou
ntry,76300 Melaka.
The location is strategic because it is in the heart of the town which made it i
s easy for customers to go there as there will be a lot of transportation. It is
also located at a business centre where people used to buy things there and it
is near to housing area. Therefore, the possibilities of the customers to come a
nd recognize of our existence is high.
1.4 Date of business registration
Tapai Sedap Sdn.Bhd is registered on 18 July 2008
1.5 Date of business commencement
Date of business commencement is JULY 2008
1.6 Industry overview/analysis
This business is focus on the traditional food industry called tapai. The tapai
industry is not commercialize and hard to get in the market; therefore we want t
o commercialize it so that the customers can easily get the products in the mark
et. There are not so many competitors in this industry as mostly, the tapai make
rs sell through stalls at the market or sell it at their house.That method is no
t effective as not many people will realize their existence, only those who knew
the makers will know about the tapai. In short, the tapai industry is just a sm
all industry that needs more exposure so that the tapai lovers can easily get th
e product.
1.7 Business potential/prospects
This business has a lot of potential which is it is a new product. Its products
are not fully available in the market and competitions are low. Therefore, we wi
ll outstand others easily in this industry. People will know our existence and w
ill come to get the tapai from us as we commercialized the products. We need to
invest heavily on our marketing plan to create brand awareness.
1.8 Factors influencing choice of business:
? To promote traditional food on a large scale
? To attract the youth generations customers by adding many interesting fl
avors.
? To obtain incredible profit through a very reasonable cost of production
? Low level of competition
? Easy to penetrate food industry market
? To change people s perception of what tapai is by creating different flavo
rs of tapai.

This business plan is prepared by Tapai Sedap Sdn.Bhd to meet these objectives:
2.1 To provide an opportunity for entrepreneur to assess the business ventur
e
Objectively, critically and practically
2.2 To study and evaluate the feasibility of the business.
2.3 To convince venture capitalist, investors and bankers in order to raise
capital and obtain support for the venture.
2.4 To be used as a guideline for day-to-day management of the business.
2.5 To assist management in the distribution of business resources more effe
ctively.

3.1 Name of the Business

The name of the business is TAPAI SEDAP SDN.BHD
3.2 Business Address, Correspondence Address and Email Address
Business address: No.33-1 & 33-2, Jalan Wira Ria,Ayer Keroh
Country,76300 Melaka.
Correspondence Address: No.33-1 & 33-2, Jalan Wira Ria,Ayer Keroh Country,76300
Melaka.
E-mail address: tapaisedap@gmail.com
3.3 Telephone and Fax Number
Tel: 06- 55415461 Fax: 06-55415463
3.4 Date of Business Registration & Business Registration Number
Tapai Sedap Sdn.Bhd is registered on 18 July 2008.
Business registration number: 5438902
3.5 Form of Business
This company is form of partnership and is a private limited company.
3.6 Business Main Activity
Our main business activity is producing Tapai.
3.7 Date of Business commencement
JULY 2008
3.8 Name of bank and account number
Bank Islam Malaysia Bhd .
No account: 20700502414022

3.9 Equity types and contribution:

NAME & ADDRESS EQUITY % OF EQUITY CONTRIBUTION STATUS IN COMPANY
Syafiq Anthony Noel Magness
No 77, Jalan Burung Belibis, Melaka Garden South, 75000 Melaka.
RM 62, 000
24%
General Manager
Nur Syaheera Yunus
No 60, Jalan Selasih Saujana Utama, 47000 Melaka.
RM 59, 500
19%
Accounting Manager
Nik Munirah Nik Hassan
Pt 655 & 656, Jalan 15, Taman Kurnia Jaya, 76100 Durian Daun, Melaka.
RM 59,500
19%
Administration Manager
Sarra Nadira Saifuddin
No. 25, Jalan Nyaman 11, Taman Bukit Indah, 78200 Melaka.
RM 59,500
19%
Marketing Manager
Abdul Aziz Azizam
No 8, Jalan Naka, 74000 Pokok Melaka, Melaka.
RM 59,500
19%
Operation Manager
Total Equity RM 300, 000

4.1 Particular of each partner/member

? GENERAL MANAGER
Full Name Syafiq B. Anthony Noel Magness
IC Number 810428-08-5921
Address No 8, Jalan Naka, 74000 Pokok Melaka, Melaka.
Correspondent address No 8, Jalan Naka, 74000 Pokok Melaka, Melaka.
Tel. Number 017-4099856
Date of birth 28-04-1981
Sex Male
Marital status Married
Academic Qualification MBA
Courses Attend Business skill and management
Current Job Assistant Manager at Perodua
Previous business experience Sell used cars for 3 years
? ADMINISTRATION MANAGER
Full name Sarra Nadira Saifuddin
IC Number 821029-56-6538
Address No. 25, Jalan Nyaman 11, Taman Bukit Indah, 78200 Melaka.
Correspondent address No. 25, Jalan Nyaman 11, Taman Bukit Indah, 78200 Melaka
.
Tel. Number 012-3487537
Date of birth 29-10-1982
Sex Female
Marital status Single
Academic Qualification Degree in Office Management
Courses Attend Business skills , office management
Current Job Assistant Manager in Peremba Holdings
Previous business experience Opened a food stall in Hartamas Square for 2 yea
rs

? ACCOUNTING MANAGER
Full Name Nur Syaheera Yunus
IC Number 810529-10-5098
Address No 60, Jalan Selasih Saujana Utama, 47000 Melaka.
Correspondent address No 60, Jalan Selasih Saujana Utama, 47000 Melaka.
Tel. Number 012-9358422
Date of birth 29-05-1981
Sex Female
Marital status Married
Academic Qualification Degree in Accounting
Courses Attend Accounting,business management & skills
Current Job Executives in Tatsumi Shokai Sdn Bhd
Previous business experience Family business in Saujana Utama for 2 years

? MARKETING MANAGER
Full Name Nik Munirah Nik Hassan
IC Number 830829-56-5598
Address Pt 655 & 656, Jalan 15, Taman Kurnia Jaya, 76100 Durian Daun , Melaka.
Correspondent address Pt 655 & 656, Jalan 15, Taman Kurnia Jaya, 76100 Durian
Daun , Melaka.
Tel. Number 014-8189791
Date of birth 29-08-1983
Sex Female
Marital status Single
Academic Qualification Degree in Marketing
Courses Attend Advertising, marketing, communication skills
Current Job Head chef at Big Apple donut company in Tesco Kelantan
Previous business experience Family business restaurant for 2 years.

? OPERATING MANAGER
Full name Abdul Aziz Azizam
IC Number 830412-08-5417
Address No 77, Jalan Burung Belibis, Melaka Garden South, 75000 Melaka.
Correspondent address No 77, Jalan Burung Belibis, Melaka Garden South, 75000
Melaka.
Tel. Number 012-5901989
Date of birth 12-04-1983
Sex Male
Marital status Married
Academic Qualification Degree in Event Management
Courses Attend Event and Marketing management
Current Job Event Coordinator
Previous business experience Event planner at event management company for 3
years

5.1 Map

5.2 Building type

It is a double-storey shop house with the size of 40 X 70 . The value of the shop l
ot is RM300k.
5.3 Infrastructure and facilities
? Water
The water source is from Jabatan Bekalan Air and is in a good condition.
? Electricity
The electricity source is from Tenaga Nasional Berhad and is properly controlled
.
? Telecommunication
Telephone lines and Internet network is received from TM Berhad and in a good co
ndition.
? Pantry
Located in the office for rest time. Electric kettle and some snacks are availab
le.
? Praying Room
A praying room for Muslims staffs.
? Others
Hospital, police station, firemen department and many kind of shops are located
nearby the business location. These landmarks made it easy for customers to find
our place and also easy for us to get necessity requirement. With all the facil
ities available, our business could run smoothly.
6.1 General Business Description
Mainly, our business is producing tapai. Tapai is a traditional food that usuall
y loved by the old people. It is hard to find youngsters that love to eat tapai.
However, we want people from all generation to love our traditional food tapai.
Therefore, as a way to attract the people, we add many interesting flavors to t
he tapai. It includes Rose, Yam, Strawberry, Pandan, Chocolate, Durian, Coffee,
Vanilla, Oreo, Cappuccino, Banana, Sunkist Orange and tapai with ice-cream. We wil
l manufacture the tapai in our own shop and then, directly sell to the customers
. We also accept bookings for special events such as weddings and corporate meet
ings.

6.2 Organisation Chart

6.3 Manpower Planning

Position Number of Staff
General Manager 1
Accounting Manager 1
Administration Manager 1
Marketing Manager 1
Operation Manager 1
6.4 Schedule of tasks and Responsibilities
Position Main tasks
General Manager To plan, implement and control the overall management of the bus
iness
To plan and monitor the strategic progress of the business
To be accountable for the overall the business
Accounting Manager To handle the account for the company
To oversee the progress of the profit making
Administration Manager Responsible for administration works
Marketing Manager
Responsible to market the product , attract and maintain consumers interest
In charge in the promotion activities
Operation Manager Supervise the operation process
Responsible to do inspection for the tapai to make sure the tapai in good qualit
y
Clerk To manage all the paperwork in relation of the business in terms of acco
unts and operations

Production Staff To be held responsible for the production of products an

d services
Physically involved of the production progress
Do packaging for the tapai.

Cashier To be in charge in care of the financial input and output in terms of th

e sales of the product
Must be reliable and trustworthy

6.5 Schedule of Remuneration

Position
No.
Monthly
Salary
(RM)
EPF
Contribution
(13%)
(RM)
SOCSO
(2%)
(RM)
Amount
(RM)
General Manager 1 2200 286 44 2530
Accounting
Manager 1 1200 156 24 1380
Administration
Manager 1 1200 156 24 1380
Marketing Manager 1 1200 156 24 1380
Operation
Manager 1 1200 156 24 1380
Clerk 1 600 78 12 690
Production Staff 4 500 65 10 2300
Cashier 2
400 52 8 920
TOTAL 11 960

6.6 List of Office Furniture, Fittings & Equipment

ITEM
Quantity
PRICE(PER UNIT) (RM)
TOTAL (RM)
Executives chairs 6 80 480
Executives table 6 100 600
Cabinet files 1 250 250
Computers 3 2000 6000
Information board 1 50 50
Telephone 1 40 40
Air-conditioner 2 1700 3400
Bind 2 sets 30 60
Coffee table 1 150 150
Sofa set 1 600 600
Printer 1 400 400
Stationeries 2 sets 15 30
First aid kit 1 40 40

TOTAL
12 100
6.7 Administrative Budget
Items Fixed assets
Expenses
(RM) Monthly
Expenses
(RM) Other
Expenses
(RM)
Furniture and Fittings 12 100
- -
Renovation 20 000
Salaries - 8500 -
SOCSO - 170 -
EPF - 1105
Water/electric/
Telephone/gas/ - 2500 -
Registration - - 3000
Building insurance - - 1350
Rental - 2500 -
Rental Deposit - - 7500
Utilities Deposit - - 1000
Vehicle road tax and insurance 700
TOTAL 32 100 14 775 13 550
GRAND TOTAL 60 425

7.1 Introduction to the Product/Services

The success of a business venture depends very much on the ability of that busin
ess to offer the product that is demanded by the target customer group. In order
to meet customer demand, our product tapai, will fulfill the needs and wants of
our customer group. Besides the original tapai, we will introduce new exciting
flavors that will definitely capture people s attention such as Rose, Yam, Strawbe
rry, Pandan, Chocolate, Durian, Coffee, Vanilla, Oreo, Cappuccino, Banana, Sunki
st Orange and tapai with ice-cream. Moreover, the customers can purchase the tapai
in a packet that contains 6 cups which is a bit cheaper than buying per cup. We
also accept bookings for special events such as birthday party, weddings and co
rporate meetings.
7.1.1 Market Analysis
Tapai sedap is a locally made product that is not really available in the market
commercially. As a result of that, the product is highly profitable if marketed
. Due to its large audience of local food lovers, is not impossible to be market
able. Dodol is an example of local made product that is well known and accepted
it. So, we want to do same for the tapai product.
7.1.2 Target Market
The target market for this product is youngsters and above which comes from midd
le and upper class group. We are targeting the youngsters by adding variety of t
asty flavors. As for the adult, it will give them new experience because before
this, they only expose to the original taste of tapai.
7.1.3 Market Segmentation
? Geographical Segmentation
The geographical area of our location which is situated at Ayer Keroh, Melaka of
fer great opportunities for the business we established. This is mainly due the
environment that is business friendly. The surroundings are clean and far away f
rom other industrial companies. Other interesting factor of Ayer Keroh, it is ne
ar to Melaka town. The Tapai Sedap product is more likely to sell in this type o
f environment and that is the main reason behind our choice of location.
? Demographic Segmentation
Tapai Sedap is a famous product but not many are aware of this product. The demo
graphic segmentation we decided is carefully studied in order to instill custome
r exposure to the product. We aim 18-60 years and above for age group, middle an
d high-class female and male consumers.
7.1.4 Competitors
1) Tapai Pulut Sarimah
Tapai Pulut Sarimah (M) Sdn. Bhd.
No. 2, Jalan Lima Kidal 34/98
Masjid Tanah,64000 Melaka.
2) Tanjong Tapai
Tanjong Family (M) Sdn. Bhd.
21, Jalan Radin Anum,
Bandar Baru Sri Petaling,
57000 Kuala Lumpur, Malaysia
3) Others

7.1.5 Market Size & Market Share

Before
COMPETITORS
MARKET SHARE
(%)
MARKET SIZE
(RM)
Tapai Pulut Sarimah
25
37 500
Tanjong Tapai
48
72 000
Others 27 40 500
TOTAL 100 150 000
After
COMPETITORS
MARKET SHARE
(%)
LOSS
(%)
MARKET SIZE
(RM)
Tapai Pulut Sarimah
25
5
37 500
Tanjong Tapai
35
5
52 500
Others 15 5 22 500
Tapai Sedap
25
-
37 500
TOTAL 100 15 150 000

7.1.6 Sales Forecast

JANUARY FEBRUARY (2009)
Average price tapai per unit = 1 unit of 25 gram
25 gram per unit = RM 1.50X 500 = RM 750 for 1 day
RM750 x 30 days = RM 22 500

Product Contents Price/Unit Out Forecast For 1 Month Sales Fo

recast
TAPAI SEDAP 30 Days
(25g) RM1.50 15 000 RM 22 500
Price of Tapai Sedap product & Sales Forecast

? Company Sales Forecast For Year 2009

Year 2009
Reasons
Month Sales (RM)
January 22 500
February
27 000 Valentine s Day, School Holiday
March 30 750
April 36 000 Secretary Week
May
51 000 Mother s day, School Holiday, Wedding
June 54 750 Wedding. Father s Day
July 37 500
August
39 750 School Holiday, Independents Days
September 27 750 Fasting Month
October 39 000 Hari Raya
November 34 500 School Break
December 49 500 Christmast, School Break
TOTAL 450 000
2nd year Sales Forecast = RM 630 000
3rd year Sales Forecast = RM 900 000
? Total Product for Year 2009
Month Quantity
January 15 000
February 18 000
March 20 500
April 24 000
May 34 000
June 36 500
July 25 000
August 26 500
September 18 500
October 26 000
November 23 000
December 33 000
TOTAL 300 000
Total Product for 2010 = 420 000
Total Product for 2011 = 600 000

7.2 Marketing Strategies (4Ps)

? Product
Brand
We use Tapai Sedap as our brand name which reflects the tasty, benefits and qualit
ies of our tapai. It is also easy to pronounce, recognize and remember.
Quality
Our tapai is freshly made everyday and been inspected to maintain its quality. I
t could lasts for more than a month if store in cool place. We also use a qualit
y flavors to give the real-taste of each flavors.
Design
We design our tapai in a simple way which is in a round-shape as it will be put
into a cup.
To fulfill the wants of the customers,we also do custom-made tapai to clients th
at buy in large amount who wants different shape of tapai.
Packaging
Our packaging is design to attract the customer s attention and encouraging sales.
We vary the flavor to colorful design attached to the container. Each color rep
resenting each flavor.
Labelling
The label for our tapai provides information about the manufacturer, the content
s of the product, the nutritional facts.

Labels

? Price
The price that we have decided is considered low after evaluation of all the fac
tors involved. Low in terms of that it is low compared to its competitors. Tapai
Sedap aims to create a new product that is not only affordable but also marketa
ble. Even though the price is low, the high quality remains.
We use cost based pricing because it is the simplest and most commonly used pric
ing strategy. Cost based pricing is used on the total cast of the product plus a
 standard mark- up.
Price = Total Cost per Unit + Mark up
= RM 0.82 + (83% x RM 0.82)
= RM 0.82+ RM 0.68
=RM 1.50
PRODUCT
SIZE
PRICE PER UNIT
TAPAI SEDAP
25gram
RM 1.50
? Distribution Strategy
The form of the distribution channel that we use is from manufacturer to consume
r. It is also called as direct to consumer. It has no intermediary level and con
sists of a business selling directly to consumer.
? Place
Tapai Sedap Sdn.Bhd will manufacture its products and distribute it itself. We o
pened a small shop to sell the finished goods to the customers. We place it in o
ur own shop in Melaka mainly because of its heavy populations and the centre of
tourists where it will be relevant for the company to implement its future marke
ting strategy like the exposure of our product to tourist and to all the availab
le market.
? Promotion
Tapai Sedap Sdn.Bhd will ensure that its product is well received and promoted i
n the best ways possible under the range of the budget. Besides that, the employ
ee must be mentally and physically focused on producing a quality product and pl
easing the customer.
Among the steps that we are going to undertake are:
i. Advertise our product using hanging bunting which will be placed along t
he road at Ayer Keroh to let the customers aware of the existence of our product
.
ii. A wrapped-around method will be used through our company s van to advertis
e our product. It is an efficient way to promote our product because it travels
around the nation so the audience s attention could be tackled.
iii. Besides that, a collaboration of the T.V program Bersamamu in terms of spo
nsorship is going to take place in order to get a free publicity at Jom heboh! Ca
rnival , a carnival that fully operated by TV3.
iv. The product will also be advertised through the medium of radio broadcas
ting which be played daily for a period of times, in newspaper (once a week ever
y on Sunday) bridal (Pesona Pengantin) and women- interest (Nona) magazine. It i
s important to grab the audience attention during their leisure time. Research p
roves that auditory memory is more retainable than visual memory.
v. The product will also be custom made according to our consumer s requests
in order to be more marketable.

Magazine Advertisement

Newspaper Advertisement
Pamphlet
(front)
(inside)

Billboard

Bunting
Signboard

Business Card
front
back

7.3 Marketing Budget

Items EXPENSES
(Asset)
(RM) EXPENSES
(Monthly)
(RM) EXPENSES
(Other)
(RM)
Traveling
1) Diesel
2) Service

1000
100

Signboard 2000
Promotion
1) Billboard
2) Pamphlet
3) Newspaper
4) Wrap-around van
5) Bunting
6) Radio ads
7) Magazine ads
8) Sponsor for Bersamamu
Program
9) Business Card

300
500
10 000
900
150
2340
1200
1500

500
Total 2000 1100 17 390
GRAND TOTAL 20 490

Introduction to Operation Planning

Operating is the most important element when ever one wants to start up business
. It is one of the most important parts in business plan. Without a good operati
on plan, Tapai Sedap Enterprise will encounter problems such as inequality produ
ction, inconsistent production, failure in delivering our product, and so on. To
avoid this situation, management of the tapai should be done perfectly. Managemen
t plays a key role in successfully tapai process and the most crucial part of the
whole production process.
Tapai Sedap Enterprise is producing tapai to the whole consumer in Malaysia and pe
rhaps to neighboring country like Indonesia, Thailand and Singapore. As an indus
try, it will be essential through experience, research and knowledge, we learn h
ow to produce tapai in commercial way instead of the traditional ones. Commercial
way here means we produce tapai massively and using modern technology.
8.1 Plan /Office Location
No.33-1 & 33-2 ,Jalan Wira Ria,Ayer Keroh Country,76300 Melaka.

8.2 Office Layout

8.2 Process Flow Chart

Symbol Type of Activity Description
Operation Activities that modify, transform or give value to the input.
Transportation Transport activity occurs when materials are transported from on
e point to another
Inspection Activity that measures standard of the in-process material or fi
nished product
Storage The symbol is use when in-process materials or finished products are sto
red in storage area

Measure glutinous rice

 Soaked glutinous rice for 4 hours

Steam the glutinous rice in the steamer for 1 hour

Cooling the tapai and add yeast and flavour

Inspection of tapai quality

Tapai are packed into small packages

Inspection of quality of packaging

Packages are put into boxes

Transport boxes to store and transport some of the finished

goods to the shop
Keep boxes in store
The process of making tapai is quite simple. Firstly, wash and measure the gluti
nous rice as needed. Then, soak the glutinous rice for 4 hours. Next, steam the
glutinous rice for an hour. It will become a tapai later. Add yeast and flavor t
o the tapai. The quality of the tapai will be measured using refractometer. Soon
after being inspect, the tapai are ready for packaging. The packages are put in
to boxes. Some of it will be store in the store room while the rest will be put
at the shop to sell.
? Productivity Index
Productivity Index = Total sale per month
Total operation cost per month
= RM 22 500
RM 12 367
= 1.8
8.4 Unit Output/Hours of Operation
? Daily production rate
Production demand/working days = no. of tapai per day
15 000 = 576.9 tapai per day
26
? Hourly production rate
Tapai per day/ working hours = unit of tapai
576.9 = 57.9 units of tapai per hour
10
8.5 Materials Requirement
Glutinous rice
Yeast
Flavour
Water

Ingredient
Amount required for 100 tapai
Amount required per/tapai
Amount required/month
Glutinous Rice 1 kilogram 0.01 kilogram 0.01kg/unitx15 000
= 150 kg
Yeast 2 pieces 0.02 pieces 0.02 piece/unit x
15 000 = 300 pieces
Flavour 0.025 liter 0.00025 liter 0.00025 l /unit x
15 000 = 3.75 liter
Water 10 liter 0.1 liter 0.1l / unit x 15 000
=1500 liter

TYPE OF MATERIAL UNIT PRICE PER UNIT

(RM) NAMES OF SUPPLIER
Glutinous rice
50kg
110 Surya Food Supplier, Melaka
Yeast
100 pieces
0.97 Surya Food Supplier, Melaka
Flavor
1 bottle
3.00 Surya Food Supplier, Melaka

8.6 List of Machines and Equipment

Large container
Stirrer
weighing scale
steamer
trolley
Basin
strainer
water filter
refrigerator
face mask
gloves
ITEM
QUANTITY
PRICE PER UNIT
(RM)
TOTAL
(RM)
Basin
10
8.70
87
Weighing Scale
1
40
40
Trolley 2 20 40
Strainer 5 5 25
Water Filter
1
1200
1200
Steamer 1 10 000 10 000
Freezer
1
8000
8000
Others 100
Total 19 492
8.7 Production Budget
Operation Cost = direct material cost + direct labor cost + overhead cost
Cost per unit = Total operation cost (RM)
Total number of output (units)

? Direct Material Cost

Items Quantity Total (RM)
Glutinous rice 50kg=RM110
3unit X RM110
= RM330
330
Yeast 100 pieces = RM 97
3 X RM 97
= RM 291
291
Flavors 1 bottle=30 ml =RM3.00
12 bottle X RM 3.00
= RM36
36
Total 657
? Direct Labor Cost
Items Quantity Total (RM)
Worker Salary 4 2300
Total 2300
? Overhead Cost
Items Total (RM)
Rent 2500
Utilities 2500
Packaging product
-label
-cup
4410
Total 9410

Total Operation Cost/ monthly

Operation Cost = direct material cost + direct labor cost + overhead cost
= RM 657+ RM 2300 + RM 9410
= RM 12 367
Cost per unit = total operation cost (RM) / Total number of output (units)
= RM 12 367/ 15 000
= RM 0.82
Selling Price = RM 1.50
% mark up = (selling price cost per unit) x 100
Cost per unit
= ( RM 1.50 RM 0.82) X 100
RM 0.82
= 83%
9.1 Project Implementation Cost Schedule
A Capital Expenditure RM RM
Machinery & Equipment 19 492
Furniture & Fixture 12 100
Renovation cost 20 000
Sub-total 51592
B Working Capital
( 2 month)
Marketing 40 980
Production/ Operation 24 734
Administrative 24 550
Sub-total 90 264
C Other Expenditure
Pre-Operating
Business Registration 3000
Insurance & Road Tax 2050
Sundries 100
Deposits 8500
Utilities 2500
Sub-Total 16 150
Grand Total 158 006
D Contingency Cost 15800.60
TOTAL PROJECT IMPLENMENTATION COST 173 806.60
9.2 Sources of Finance Schedule
A Equity Contributions RM RM
Cash 300 000
Van 28 000
Sub-total 328 000
B Others
Loan from MARA 200 000
TOTAL SOURCES OF FINANCE
528 000
9.3 Loan Amortization Repayment) Schedule
Total Loan: RM 200 000
Interest: -
Duration: 10 years
Method: Flat rate
Year Principal Interest Total Repayment Balance
0 - - - 200 000
1 20 000 - 20 000 180 000
2 20 000 - 40 000 160 000
3 20 000 - 60 000 140 000
4 20 000 - 80 000 120 000
5 20 000 - 100 000 100 000
6 20 000 - 120 000 80 000
7 20 000 - 140 000 60 000
8 20 000 - 160 000 40 000
9 20 000 - 180 000 20 000
10 20 000 - 200 000 0

9.4 Table of Depreciation

? Fixed Asset Depreciation Schedule
Type of Asset: Van
Actual Price: RM 28,000
Economic Life: 5 years
Scrap Value: RM 0
Method: Straight Line
Year Yearly Depreciation Total depreciation Balance
0 0 0 28 000
1 5600 5600 22 400
2 5600 11 200 16 800
3 5600 16 800 11 200
4 5600 22 400 5600
5 5600 28 000 0
Type of Asset: Furniture and Fittings
Actual Price: RM 12 100
Economic Life: 5 years
Scrap Value: RM 0
Method: Straight Line
Year Yearly Depreciation Total depreciation Balance
0 0 0 12 100
1 2420 2420 9680
2 2420 4840 7260
3 2420 7260 4840
4 2420 9680 2420
5 2420 12 100 0
Type of Asset: Machinery and equipment
Actual Price: RM 19 492
Economic Life: 5 years
Scrap Value: RM 0
Method: Straight Line
Year Yearly Depreciation Total depreciation Balance
0 0 0 19 492
1 3898.40 3898.40 15 673.60
2 3898.40 7796.80 11 695.20
3 3898.40 11 695.20 7796.80
4 3898.40 15593.60 3898.40
5 3898.40 19 492 0
9.5 Pro forma Cash flow Statement
Year 2009 2010 2010
Beginning Cash balance 0 380 674 501 880.80
A Cash Inflow:
Equity- Cash 300 000 0 0
Term-loan 200 000 0 0
Cash Sales 450 000 630 000 900 000
Total Cash Inflow 950 000 630 000 900 000
B Cash Outflow:
Operation Expenditure:
Raw Material
Direct Labor
Operations overheads
7884
27 600
52 920
8278.2
27 600
55 566
8692.11
27 600
58 344.30
Marketing Expenditure:
Traveling
Signboard
Promotion
Business Card
13 200
2000
202 680
500
13 860
0
202 680
0
14 553
0
202 680
0
Administrative Expenditure:
Salaries
EPF& SOCSO
Utilities
Rent
102 000
15 300
30 000
30 000
102 000
15 300
31 500
30 000
102 000
15 300
33 075
30 000
Loan Repayment:
Principal
Interest
20 000
-
20 000
-
20 000
-
Capital Expenditure:
Machinery & Equipment
Furniture & Fixtures
Renovation
19 492
12 100
20 000
0
0
0
0
0
0
Pre-operational Expenditure
Deposits 5150
8500 2000
0 1800
0
Total cash outflow 569 326 508 793.20 514 044.41
Cash Surplus 380 674 501 880.80 887 836.39
Ending Cash Balance 380 674 501 880.80 887 836.39
? Calculation of Direct Material Costs
Direct Material Cost 2009 2010 2011
(RM) (RM) (RM)
Opening Stock( beginning of year)
Add: Purchase of raw material( for the year)
Raw material available for manufacturing
Less: closing stock (end of year)
Cost of Direct Material
0
7884 7884
236.52
8120.52
236.52
8278.2
8514.7
255.44
8770.14
255.44
8692.11
8947.55
268.430
9215.98
? Calculation of Cost of Goods Manufactured
Cost of Goods Manufactured 1st year (2009)
Raw Material Used: RM RM
Opening Stock( beginning of year)
Add: Purchase of raw material( for the year)
Raw material available
Less: closing stock (end of year)
Direct Material
Direct Labor
Prime Cost
Manufacturing Overheads
Work-in-process
Add: Work-in-process(1/1)
Less: work-in-process(31/12)
Cost of goods manufactured 0
7884 7884
236.52

0
0
8120.52
27 600
35 720.52
112 920

0
148 640.52
Cost of Goods Manufactured 2nd year (2010)
Raw Material Used:
Opening Stock( beginning of year)
Add: Purchase of raw material( for the year)
Raw material available
Less: closing stock (end of year)
Direct Material
Direct Labor
Prime Cost
Manufacturing Overheads
Work-in-process
Add: Work-in-process(1/1)
Less: work-in-process(31/12)
Cost of goods manufactured RM
236.52
8278.2
8514.7
255.44

0
0
RM

8770.14
27 600
36 370.14
112 920

0
149 290.14

Cost of Goods Manufactured 3rd year (2011)

Raw Material Used:
Opening Stock( beginning of year)
Add: Purchase of raw material( for the year)
Raw material available
Less: closing stock (end of year)
Direct Material
Direct Labor
Prime Cost
Manufacturing Overheads
Work-in-process
Add: Work-in-process(1/1)
Less: work-in-process(31/12)
Cost of goods manufactured
RM
255.44
8692.11
8947.55
268.430

0
0

RM

9215.98
27 600
36 815.98
112 920

0
149 735.98
? Calculation of Gross Profit (Manufacturing Entity)
Gross Profit (Manufacturing Entity) 1st year (2009)
RM RM
SALES 450 000
COST OF GOODS SOLD:
Opening stock for finished(1/1)
Add: Cost of goods manufactured
Goods available for sale
Less: Closing stock for finished goods(31/12)
GROSS PROFIT
0
148 640.52
148 640.52
236.52
148 404
301 596
Gross Profit (Manufacturing Entity) 2nd year (2010)
RM RM
SALES 630 000
COST OF GOODS SOLD:
Opening stock for finished goods(1/1)
Add: Cost of goods manufactured
Goods available for sale
Less: Closing stock for finished goods(31/12)
GROSS PROFIT
236.52
149 290.14
149 526.66
255.44

149 271.22
480 728.78
Gross Profit (Manufacturing Entity) 3rd year (2011)
RM RM
SALES 900 000
COST OF GOODS SOLD:
Opening stock for finished(1/1)
Add: Cost of goods manufactured
Goods available for sale
Less: Closing stock for finished goods(31/12)
GROSS PROFIT
255.44
149 735.98
149 991.42
268.430

149 722.99
750 277.01
9.6 Profit and Loss Pro-Forma Statement
1st year (2009)
RM RM
SALES 450 000
COST OF GOODS SOLD:
Opening stock for finished(1/1)
Add: Cost of goods manufactured
Goods available for sale
Less: Closing stock for finished goods(31/12)
GROSS PROFIT
LESS: OPERATING EXPENSES
Administrative Expenses
Marketing
Depreciation Charges
Total operating expenses
NET PROFIT BEFORE TAX
0
148 640.52
148 640.52
236.52

177 300
13 200
31 918.4

148 404
301 596

222 418.4
79 177.60
2nd year (2010)
RM RM
SALES 630 000
COST OF GOODS SOLD:
Opening stock for finished(1/1)
Add: Cost of goods manufactured
Goods available for sale
Less: Closing stock for finished goods(31/12)
GROSS PROFIT
LESS: OPERATING EXPENSES
Administrative Expenses
Marketing
Depreciation Charges
Total operating expenses
NET PROFIT BEFORE TAX
236.52
149 290.14
149 526.66
255.44

177 300
13 200
31 918.4

149 271.22
480 728.78

222 418.4
258 310.38
3rd year (2011)
RM RM
SALES 900 000
COST OF GOODS SOLD:
Opening stock for finished(1/1)
Add: Cost of goods manufactured
Goods available for sale
Less: Closing stock for finished goods(31/12)
GROSS PROFIT
LESS: OPERATING EXPENSES
Administrative Expenses
Marketing
Depreciation Charges
Total operating expenses
NET PROFIT BEFORE TAX
255.44
149 735.98
149 991.42
268.43

177 300
13 200
31 918.4
149 722.99
750 277.01

222 418.4
527 858.61

Balance Sheet Pro-forma Statement

1st year (2009)
RM RM
FIXED ASSETS
Land Building
Machinery& equipment
Furniture and fixture
Renovation
Van
-
19 492
12 100
20 000
28 000

79 592
CURRENT ASSETS
Bank
Cash
Closing stock for raw materials
Closing stock for finished goods
109 938.56
380 674
236.52
236.52

491 085.60
OTHER ASSETS
Deposits
8500
8500
TOTAL ASSETS 579 177.6
EQUITY
Capital
Accumulated profit
300 000
79 177.60
CURRENT LIABILITIES
LONG-TERM LIABILITIES
Term loan
Hire purchase
200 000
-
TOTAL EQUITY AND LIABILITIES 579 177.60

2nd year (2010)

RM RM
FIXED ASSETS
Land Building
Machinery& equipment
Furniture and fixture
Renovation
Van
-
19 492
12 100
20 000
28 000

79 592
CURRENT ASSETS
Bank
Cash
Closing stock for raw materials
Closing stock for finished goods
41 633.72
501 880.80
236.52
255.44

502 372.76
OTHER ASSETS
Deposits
8500
8500
TOTAL ASSETS 469 239.04
EQUITY
Capital
Accumulated profit
300 000
79 177.60
121 225.76
CURRENT LIABILITIES
LONG-TERM LIABILITIES
Term loan
Hire purchase
200 000
-
TOTAL EQUITY AND LIABILITIES 469 239.04

3rd year (2011)

RM RM
FIXED ASSETS
Land Building
Machinery& equipment
Furniture and fixture
Renovation
Van
-
19 492
12 100
20 000
28 000

79 592
CURRENT ASSETS
Bank
Cash
Closing stock for raw materials
Closing stock for finished goods
53 829.24
514 044.41
255.44
268.43

514 568.28
OTHER ASSETS
Deposits
8500
8500
TOTAL ASSETS 469 239.04
EQUITY
Capital
Accumulated profit
300 000
79 177.60
CURRENT LIABILITIES
LONG-TERM LIABILITIES
Term loan
Hire purchase
200 000
-
TOTAL EQUITY AND LIABILITIES 469 239.04

Conclusion / Justification
The Tapai Sedap product is highly profitable and marketable. There are many reas
ons to support this statement. Firstly, the Tapai Sedap product has 13 interesti
ng flavors which in favor of the market audience. Apart from that, the tapai pro
duction is relatively old in Malaysia but not properly revolutionized. Tapai Sed
ap Sdn. Bhd. aims to be the pioneer to the business of tapai production on a lar
ge scale. The goal is possible because there are not many competitors to compete
with us. In the future, we hope the product will reach into further destination
outside Malaysia. The Tapai Sedap product clearly has what it takes to make our
company recognizable.