Business Proposal

-HD- Learning Centre

Business Proposal for HD Learning Centre

Description and Ownership of Proposed Business
-HD-Learning Centre will be located in the middle of the city. This learning centre is provided for
students in their primary school (SD 1 – 6), secondary school (SMP 1 – 3), higher level of
secondary school (SMU 1 – 3) and even college students. It is believed that this learning centre
should be appealing for the students because the place where it will be located is extremely
strategic and the education provided will be in high quality. Besides that, the fees are affordable
by most of the students.

Assessment of the Business Environment

Economic Environment
Economic growth
As have been analyzed, the economic growth in Indonesia is pretty weak due to increase
in US$ against Indonesian currency. Besides that, the increase in the fuel price does have
an effect in its economic growth, thus, decreasing its aggregate expenditure and
indirectly increase unemployment rate in Indonesia.

Interest rates
The interest rate charged by a bank for residents who want to borrow money will be
different depending on its loan amount. Usually bank will charge up to 13% annually.

Inflation
The inflation rate in Indonesia is 10%.

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Industry Environment
Industry demand
The industry demand for learning centre seems to be high since there are a lot of new
learning centre are being opened in Medan. But the people in Medan are willing to pay
for high quality education for their children. Thus, it is highly believed that once the
students show improvement in their English, Chemistry, Mathematics and Physics, it will
eventually attract more students in future.

Business Proposal for HD Learning Centre

Industry competition
The competition will be quite aggressive because there are a lot of learning centre that
can be found in Medan. In being competitive advantageous over its competitors, -HD-
Learning Centre comes out with the following strategies:
o Efficient production, charging a little lower fee than its competitors.
o Better quality of education in which the teachers will be with better quality in
providing knowledge to the students.
o Product differentiation, in differentiating itself, -HD- Learning Centre decides to
provide tuition in English, Chemistry, Mathematics and Physics subjects.

Labor environment
In finding its employees, or teachers, -HD- Learning Centre will only hire qualified
teachers and will be managed directly by its Managing Director and supervised by Hadi
Tjandra, MCom.

Regulatory environment
The regulation to open learning centre will be supervised later.

Global Environment
The exchange rate of US$ to Indonesian Rupiah ~ US$1.00 = Rp9.100

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Management Plan
Production process
This learning centre will provide tuition for four different subjects:
1. English
a. General English
b. Business English
c. Conversation
2. Chemistry for SMP level to SMA level

Business Proposal for HD Learning Centre

3. Mathematics for all levels
4. Physics for SMP level to SMA level
5. Accounting for college students

Organizational Structure
Deva Djohan will be the Managing Director of -HD- Learning Centre in which she will be
managing the learning centre with the supervision of Hadi Tjandra. -HD- Learning Centre
uses centralized way of managing its learning centre, where most authority is held by
her.

Managing Effectively
Deva is going to hire different teachers who specialize in English, Chemistry,
Mathematics and Physics. Teaching hours will be as follow:
Morning : 10am – 11.30am
Afternoon I : 1pm – 3.30pm
Afternoon II : 4pm – 5.30pm
Evening I : 6pm – 7.30pm
Evening II : 7.30pm – 9pm
Hadi Tjandra and Deva Djohan will interview the applicants and Deva Djohan will train all
of the teachers prior to the opening the learning centre. In other word, she is going to
use Autocratic style in which Deva retains full authority for decision making.

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She is going to use Reinforcement Theory to motivate her employees by giving positive
reinforcement to motivate employees by providing rewards for their high performance.
The rewards can range from:
Oral compliment – praising employees orally during meeting
Promotion – by putting the teacher in higher position
Bonus – given at the end of the month

Besides that, she also has to implement negative reinforcement in which she believes it

Business Proposal for HD Learning Centre

could motivate their employees by encouraging them to behave in a manner that avoids
unfavorable consequences like warning to job termination.

To motivate employees, she thinks it would be best to provide job enrichment programs
which can enhance her employees’ job satisfaction and motivation by using the
following programs:
1. Adequate compensation program
2. Job security
3. Flexible work schedule
4. Employee involvement programs

Human Resource Management

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In her Human Resource Planning, as she wants to make sure that all of her employees
are with the best quality, thus, she carries out few tasks:
Forecasting staffing needs
o Forecast employee replacement: she is going to replace her employees
when she believes that her employees are too old, decrease in
productivity, etc.
o Forecast employee expansion: she decides to expand the number of her
employees when her restaurant is doing excellent or when she is going to

Business Proposal for HD Learning Centre

open a branch.

Job Analysis
Develop job description
o Having good communication skills
o Each teacher has responsibility of attending class on time
o Each teacher has responsibility of giving lesson as have been planned by
coordinator
o Each teacher has responsibility of giving assessment to see how the
students are progressing

Develop job specification

o Female/Male min. age 20 years old
o Overseas graduate are preferable
o Able to communicate in English, Hokkien and Indonesian language
o Supple, energetic and hardworking

Recruiting

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 She is thinking of using internal recruiting as well as external recruiting in
recruiting her teachers.
o Internal recruiting
An effort to fill open positions with persons already employed in the
learning centre.
o External recruiting
The assignment of an employee to a higher-level job with more
responsibility and compensation.

Business Proposal for HD Learning Centre

Screening applicants
o Assess each application
o Interview process
o Contact the applicant’s references

Making the hiring decisions

Marketing Plan
Target market
The customer will be from different ages:
SD level (from age 5 – 11 years old)
SMP level (from age 12 – 14 years old)
SMU level (from age 15 – 17 years old)
College students

Product characteristics
This learning centre as has been mentioned above; is providing:

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 1. English
a. General English
b. Business English
c. Conversation
2. Chemistry for SMP level to SMA level
3. Mathematics for all levels
4. Physics for SMP level to SMA level
5. Accounting for college students

Business Proposal for HD Learning Centre

The things that make HD Learning Centre more desirable will be the quality of the
education provided by its teachers in charge and also the environment of the learning
centre which support English Speaking area to improve the students’ ability in using
English as day to day language.

Pricing
Prior to the opening of her learning centre, she decides to give special discounts on the
school fee for those students who achieve 1st, 2nd and 3rd ranking in their school.

Promotion
HD Learning Centre is going to use the combination of promotion methods to increase
the sales of her restaurant:
Advertising: Newspapers, magazines, television, internet and outdoor ads.
Public relations

Financial Plan

Details of school fee to be charged to students:

1. English

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 a. General English : Rp350,000 per month (3 meetings/ week)
b. Business English : Rp300,000 per month (2 meetings/ week)
c. Conversation : Rp300,000 per month (2 meetings/ week)
2. Chemistry for SMP level to SMA level : Rp300,000 per month (3 meetings/week)
3. Mathematics for all levels : Rp300,000 per month (3 meetings/week)
4. Physics for SMP level to SMA level : Rp300,000 per month (3 meetings/week)
5. Accounting for College students : Rp400,000 per month (1 meeting/
week)

Business Proposal for HD Learning Centre

For MAFIA package (Rp350,000 per month)
Mathematics : Monday
Physics : Wednesday
Chemistry : Friday

HD Learning Centre
Sample Profit and Loss Account
Monthly Yearly
Revenue:
School fee
General English [10students x Rp350,000] Rp3,500,000 Rp42,000,000
Business English [10students x Rp300,000] Rp3,000,000 Rp36,000,000
Conversation [5students x Rp300,000] Rp1,500,000 Rp18,000,000
Chemistry [10 students x Rp300,000] Rp3,000,000 Rp36,000,000
Physic [10students x Rp300,000] Rp3,000,000 Rp36,000,000

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 Mathematics [10students x Rp300,000] Rp3,000,000 Rp36,000,000
MAFIA Package [10students x Rp350,000] Rp3,500,000 Rp42,000,000
Total revenue Rp20,500,000 Rp246,000,000

Operating expenses:
Teachers' salaries Rp10,000,000 Rp120,000,000
Electricity expense Rp300,000 Rp3,600,000

Business Proposal for HD Learning Centre

Water expense Rp200,000 Rp2,400,000
Office expense Rp500,000 Rp6,000,000
Miscellaneous expense Rp500,000 Rp6,000,000
Total expenses Rp11,500,000 Rp138,000,000

Net Profit or Loss for the period Rp9,000,000 Rp108,000,000