Swinburne University of Technology, Sarawak Campus: Business Plan Project

Swinburne University
of Technology,
Sarawak Campus
Business Plan Project
Tutorial Group #2 / Group #13

Mohammad Ahsan Asad Iqbal – 100075231
Mirza Tauheed Shah Baig – 100074555
MD Al Fayshal bin Shiraj – 100074746
Talha Asad Iqbal – 100085379
Aqib Mushtaq – 4331982
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ENGINEERING MANAGEMENT 2
Prepared for: Dr Victor Bong Nee Shin
TUTORIAL GROUP #2 BUSINESS PLAN PROJECT
GROUP #13
Executive Summary
Laser Tag is a type of recreational game that is played with lasers between two teams with
usually more than 5 players per team. It’s a game that requires strategy, athleticism and above
all else marksmanship. One of the unique aspects that set it apart from other arena-based
shooting games such as airsoft or paintball is that it is safe, as there are no projectiles involved,
the danger of injury is very low. As a result, people of all ages can participate in Laser Tag
without fear of sustaining injuries or harm.
A group of 5 people partnered up to provide the people of Kuching a chance to experience laser
tag, setting up their business in the heart of Kuching at The Spring Shopping Mall. All the
compulsory legal requirements were considered before starting the business. The location was
chosen considering many aspects, namely the fact that The Spring Shopping Mall was that it
is frequented by many, residents and tourists alike. Thus, it would be more convenient for
people to locate it, as well as attract people who are already shopping in the mall. Establishing
our brand as “The Amusement Cave”, we sought to offer not only Laser Tag but other activities
such as darts, billiards, and foosball and air hockey. Eight people were hired in the management
team to carry out daily operations.
Laser Tag is a booming business that is thriving all across the world. It offers huge returns on
investment and requires few employees to operate. Financial analysis was carried out to
determine the potential of the business and search for ways to increase the strength of the
business. We estimated our payback period after reviewing the income forecast to be around 9
months, which reaffirmed that the business has potential to be very successful.
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Table of Contents
1.0 Business and Industry Background ...................................................................................... 5
1.1 Service Opportunity ......................................................................................................... 5
1.2 Business Model ................................................................................................................ 5
1.3 Customer Types ............................................................................................................... 6
1.4 Target Industry ................................................................................................................. 6
2.0 Missions & Objectives ......................................................................................................... 7
3.0 Introduction of the Service and Technology........................................................................ 7
3.1 Introduction to the Service ............................................................................................... 7
3.1 Business Uniqueness ........................................................................................................ 7
3.1.1 Laser tag unique features .......................................................................................... 7
3.1.2 Intellectual Property .................................................................................................. 8
3.1.3 Service Uniqueness ................................................................................................... 8
3.2 Entry Strategy .................................................................................................................. 8
4.0 Business Legal Considerations ............................................................................................ 9
4.1 Private Limited Company ................................................................................................ 9
4.2 Occupational Health and Safety....................................................................................... 9
4.3 Sales and Income Tax ...................................................................................................... 9
4.4 Company Name Registration ......................................................................................... 10
4.5 Business Licensing......................................................................................................... 10
4.6 Company Name and Registration .................................................................................. 10
5.0 Marketing Analysis ............................................................................................................ 11
5.1 Target Markets ............................................................................................................... 11
5.1.1 Primary Target Market: School and College Students Age Group (10-17)............ 11
5.1.2 Secondary Target market: University Students Age Group (18-25) ...................... 11
5.1.3 Tertiary Target market: Young Adults Age Group (26-35).................................... 12
5.2 Market Structure and Industry ....................................................................................... 12
5.2.1 Market Share ........................................................................................................... 12
6.0 Marketing Strategy............................................................................................................. 13
6.1 Channels of Marketing................................................................................................... 13
6.2 Promotion Strategy ........................................................................................................ 14
6.3 Pricing Strategy.............................................................................................................. 14
7.0 Competitive Analysis ......................................................................................................... 15
7.1 SWOT Analysis ............................................................................................................. 15
7.2 Porter’s Five Forces Analysis ........................................................................................ 16
8.0 Quality Control and Maintenance ...................................................................................... 17
8.1 Equipment Quality Control and Maintenance ............................................................... 17
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8.2 Software Improvement and Maintenance ...................................................................... 17
8.3 Arena Improvement and Maintenance ........................................................................... 18
8.4 Feedback Platform ......................................................................................................... 18
8.5 Damage Control ............................................................................................................. 18
8.6 House of Quality ............................................................................................................ 19
9.0 Financial Analysis .............................................................................................................. 19
9.1 Establishment Cost......................................................................................................... 19
9.2 Purchasing Cost ............................................................................................................. 20
9.3 Production Costs ............................................................................................................ 22
9.4 Running Cost ................................................................................................................. 22
9.5 Salaries ........................................................................................................................... 24
9.6 Marketing Cost............................................................................................................... 24
9.7 Administrative Cost ....................................................................................................... 25
9.8 Break-Even Analysis ..................................................................................................... 26
10.0 Sustainability.................................................................................................................... 27
10.1 Economic Sustainability .............................................................................................. 27
10.2 Environmental Sustainability ....................................................................................... 27
11.0 Management Team and Operating Plan ........................................................................... 27
11.1 Management Team....................................................................................................... 27
11.2 Operation Flowchart .................................................................................................... 28
11.2.1 Laser Tag .............................................................................................................. 28
11.2.2 Food and Beverages .............................................................................................. 28
11.2.3 Additional Games ................................................................................................. 29
11.3 Facilities and Equipment.............................................................................................. 29
11.3.1 Facilities ................................................................................................................ 29
11.3.2 Machineries ........................................................................................................... 29
11.4 Location ....................................................................................................................... 30
11.5 Layout of Business ....................................................................................................... 31
11.5.1 Required Space ..................................................................................................... 31
11.6 Safety ........................................................................................................................... 32
12.0 Predictive Analysis and Business Viability ..................................................................... 32
12.1 Sales, Income & Profit Forecast .................................................................................. 32
12.2 Financial Ratios ........................................................................................................... 34
12.3 Capital Investment Decision Tools .............................................................................. 34
12.3.1 Net Present Value ................................................................................................. 34
12.3.2 Internal Rate of Return (IRR) ............................................................................... 35
12.3.3 Payback Period...................................................................................................... 35
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13.0 Financial Statement and Projection ................................................................................. 35
13.1 Balance Sheet ............................................................................................................... 35
13.2 Income Statement......................................................................................................... 36
13.3 Cash Flow Statement ................................................................................................... 37
14.0 Exit Strategy..................................................................................................................... 38
15.0 Recommendations ............................................................................................................ 38
16.0 Conclusion ....................................................................................................................... 39
References ................................................................................................................................ 40
Meeting Minutes ...................................................................................................................... 41
Table of Figures
Figure 1: Market Share of the business.................................................................................... 13
Figure 2: SWOT Analysis ........................................................................................................ 16
Figure 3: Porter's Five Forces Analysis ................................................................................... 16
Figure 4: House of Quality ...................................................................................................... 19
Figure 5: Shows the calculation for the compound interest for the loan ................................. 23
Figure 6: Operation Flowchart ................................................................................................. 28
Figure 7: Supply Chain cycle for inventory............................................................................. 29
Figure 8: Geographic Information System with nearby schools and university...................... 30
Figure 9: Rental Area shown on the map................................................................................. 31
Figure 10: Layout of Business ................................................................................................. 31
Figure 11: Pie chart that distributes the income sources.......................................................... 33
Table of Tables
Table 1: Pricing strategy for the business ................................................................................ 14
Table 2: Estimated Establishment Costs .................................................................................. 20
Table 3: Estimated equipment and utilities purchasing cost. ................................................... 21
Table 4: Estimated inventory purchasing cost ......................................................................... 21
Table 5: Estimated costs of running the business .................................................................... 23
Table 6: Staff Salaries per month............................................................................................. 24
Table 7: Marketing cost for all the years ................................................................................. 24
Table 8: Total fixed costs ......................................................................................................... 25
Table 9: Total variable costs .................................................................................................... 26
Table 10: Estimated costs of running the business .................................................................. 32
Table 11: Estimated profit (for the first three years) ............................................................... 33
Table 12: Financial Ratios ....................................................................................................... 34
Table 13: Net Present Value at 10% Discount Factor ............................................................. 34
Table 14: Net Present Value at 15% Discount Factor ............................................................. 34
Table 15: Payback Period for 10% Discount Factor ................................................................ 35
Table 16: Payback Period for 15% Discount Factor ................................................................ 35
Table 17: Balance Sheets for the upcoming years ................................................................... 35
Table 18: Income Statements for the upcoming years ............................................................. 36
Table 19: Cash Flow Statements for the upcoming years........................................................ 37
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1.0 Business and Industry Background
1.1 Service Opportunity

Kuching is a city with a relatively low population and a few tourists. As noted by the increase
in number of cinemas and other forms of entertainment in the city, the people here crave for
opportunities for enjoyment. Laser Tag is another such form of entertainment that bodes well
with Kuching and its people. Currently, there are no places in Kuching which provide Laser
Tag, so the competition is already reduced. Moreover, this business has quick return on
investments while not having any expendables. Not only does it cover a wide age range, but it
also ensures safety of the players and staff. The Laser Tag business has been evolving
dynamically in recent years, which is an indication of a decent prospect of such business.
Therefore, the business plan for launching a Laser Tag Arena has been proposed. The plan aims
to fulfill Kuching’s entertainment cravings whilst enabling us to earn substantial income.
1.2 Business Model

The laser tag business was named “The Amusement Cave” and was planned to be located in
The Spring Shopping Mall, which is frequented by the many residents of Kuching, as well as
visitors from other cities and countries. The mall is located along Jalan Simpang Tiga near
Swinburne University Sarawak Campus. It’s also important to note that the students of that
university are amongst the target audience.
To know the business, one should know what happens in the laser tag game. At the start people
will need to buy a ticket for RM 20 each and wait for their turn to come. As they waited, they
could roam around the mall or wait at the lounge provided by the business. The lounge offers
snacks and drinks, as well as instructional videos being played on screens mounted throughout
the lounge. There are side activities like dart, foosball, air hockey and billiards. These side
activities can be played using tokens purchased from the main counter. These activities would
be to attract attention towards the Laser Tag area, in addition to providing the laser tag
customers a way to pass time whilst waiting for their turn. After the wait is over the players
must wait in the entrance line while their names are inserted on the game. When the players
are instructed to enter, the staff will hand over armor and laser guns to the players which would
light up to the color of the team the player is a part of. Then the game rules are described to the
players.
Usually, two teams will play in the darkened arena trying to shoot as many of their opponents
as possible while avoiding being shot from the opposing team. If a player gets shot they would
be disabled for three seconds, which would be indicated by a flashing white light. During this
period, they can’t be shot while also being unable to shoot. When the game starts, the lights
would be dimmed to allow players to distinguish between opponents. Energetic music would
be played to set the mood for players. And at the end, the team with the most points wins. Later,
the players would exit the arena and be able to see the scoreboard and their respective names
and points they achieved. Then they can either rest for a while and wait for another game or
just leave. At the end of the day the top scorer is announced at a certain time and he receives a
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small reward. This would encourage people to play more games to achieve the position of top
scorer for the day
The business setup wasn’t as costly as we initially expected. The laser tag equipment was
ordered from the company LASERWAR and the overall cost for buying the laser tag equipment
was around RM 43,000. 14 sets of laser gun and vest were ordered so that 14 players can play
at a time. The cost to setup all the small games, led screens, sofas and decorations was about
another RM 40,000. Four people would be hired for the laser tag arena, they control the entry
of the players, one gives the players few instructions, one helps the players to wear the gear
and the last person stays on the computer to oversee the game and software. On the outside 3
more people are hired. One stays as the cashier. He sells the tickets, coins and the snacks and
2 more people to oversee the waiting lounge activities. At the gate one security guard is hired.
Externally, one electrical engineer pays his visit to keep the equipment well maintained. The
total area is around 5000 square foot including laser tag arena, briefing room, equipment room
and the waiting lounge. It costs around RM 25,000 per month for the rental and about RM
14000 for the staff salary (LASERWAR 2019). The rental estimate was found after inquiring
The Spring Shopping Mall.
Now, even if there are only 42 games of laser tag played per week then the company will reach
the breakeven point. This gives an idea that the company will flourish easily if there are 80
games of laser tag played per week. Later, the equipment can be upgraded, and arena can be
decorated further for a greater experience.
1.3 Customer Types

Since this is an entertainment amenity, the main target audience for it will be youngsters or
students, who can enjoy a game of laser tag either with their friends or with the other laser tag
customers. Other customers may include people of all ages and families, since laser tag is a
safe to play game compared to other similar games like airsoft or paintball. The game comprises
of sensors and lasers which enable the players to have just as much fun but more safely. A
group of friends or co-workers can sign up as teams to play a competitive game with other
teams or amongst themselves.
Although the game is fit to play for all kinds of people, the main marketing demographic would
be towards the younger generation who have a taste for shooting simulations and competition.
1.4 Target Industry

The target industry would be the arena-based competition activity industry. Nowadays, such
activities, like laser tag, paintball and airsoft are becoming popular due to the era of
videogames, which enable people to experience a similar gaming combat like scenario (like in
Call of Duty or Battlefield games) in real life. The reason why laser tag is more likely to
succeed compared to the other two is mainly the safety aspect of the game and the fact that it
can be played indoors. Competitive sporting events can be conducted with laser tag for goal-
based games and tactical missions-based combat for laser tag matches. This is a method of
combat simulation which can make the combat feel realistic based on the equipment and gear
used.
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2.0 Missions & Objectives

The mission of the business model is mainly to provide its audience a fun and engaging
experience which will keep making them come back for more. With time limited or score set
matches, the adrenaline rush experienced by the customers during the games will incline them
to return for several more matches. Another mission is to urge competitiveness in people that
will give them a little break from couch entertainment and encourage physical activity instead.
The objectives can be summarized as follows:
• Provide a fun and intense experience for people of all ages

• Provide competitive or missions-based combat between teams of people
• Provide a different type of entertainment amenity to people
• Encourage teamwork, exercise and healthy competition
Lastly, the business aims to become a successful one, generating enough revenue to not only
cover investment costs but also to expand and grow in the future. Improvements in the business
will keep the business popular and constantly in demand by the customers. The business is
planned to increase to a larger setting with better equipment and various styles of game
matches, enabling the customers to have a fulfilling and customized experience to their liking.
3.0 Introduction of the Service and Technology
3.1 Introduction to the Service

The business aims to provide a fun and enjoyable experience to customers, mainly children and
youngsters. The laser tag game will offer an adrenalin-pumping thrill which can only be felt by
playing it. Consistent with the previous information, The Amusement Cave will also offer other
games such as darts, pool, foosball and air-hockey which will be available to the customers
before and after the laser tag gaming sessions. There is more peripheral entertainment in the
form of in-store snack shops, allowing people to enjoy snacks as they play. The fact that the
games are readily available should act as a convincing tool for the consumers to avail our
service. This will be due to their peace of mind regarding the maintenance of service quality
by the business.
3.1 Business Uniqueness

3.1.1 Laser tag unique features
Like most laser tag business our business will have almost the same features. Nevertheless, the
business uniqueness need to be ensured. In order to do that we have incorporated lot of extra
features inside the game, which is our main attraction. The following features are used in our
laser tag game and we are pretty sure these features are not used by any laser tag businesses at
least in the entire Malaysia.
• In most laser tag business system, it has been found that they have a unique way to
assess achievement of their players. Our company has decided to use an easier but
amusing achievement system that will keep player records for months. The top player
of the day will get two free games reward. While he tops player of the entire month
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will get 5 free games or a free game to host 14 players for free. In this way company
will not have to use up any cash to pay the players.
• Inside the laser tag game there will be an additional drone which will be neutral. This
drone will fly around randomly and will randomly fire all the players inside the arena
shooting at the drone would give points to either team.
• Bomb diffusing: One team would have a ‘bomb’ which would explode 1 minute after
planting while the other team will have bases to defend. Teams would win by planting
a bomb and having it explode or either eliminating all of the other team’s members.
Other businesses use different modes like hostage rescue, death match and battle royal.
3.1.2 Intellectual Property

Applying for intellectual property is imperative for our business as our unique ideas bear
potential to be very profitable and are easy to be imitated by other entrepreneurs.
• Our business name is the first intellectual property that we have. We have made sure
that the name is not used elsewhere.
• We also have made a logo for our business which is also the part of our unique property.
• One of the business ideas of our business is kept hidden. That is the way we
incorporated the drone in the laser tag system. This feature will not be shared to any
people. Therefore, it gets added in the tally of our intellectual property.
3.1.3 Service Uniqueness

Next, we needed to have uniqueness in our services. Most of the laser tag business have
additional services just like us we do. But it has been seen in Malaysia that the foods and
beverages provided by the laser tag company lacks ice cream corner. People might want to cool
down with something cold e.g. ice cream or cold drinks, when they have sweated heavily during
a game of laser tag. Our business is also providing additional games with very cheap prices.
Usually those games cost higher but our main motive is to attract people towards laser tag and
make their time worth by playing side games when they are waiting for their turn of laser tag.
3.2 Entry Strategy

The entry strategy that has been chosen is the launching of a new business. The estimated initial
costs and size of working staff is a major factor in this decision. Of course, a certain sum of
money is required to setup the business. This has been estimated to be about RM 180,000
(including the arena and all the equipment needed). The running costs have been estimated to
be about RM 50,000 (including rental and employees’ salaries). A minimum of 42 games per
week should help reach the breakeven point. All additional games played will result in the
generation of extra revenue for the business.
Entering the market in Kuching will be slightly easier as no other similar business exists
currently. This may result in increased sales, awareness of our brand and stability of business
due to first mover advantage (FMA). The selected location, The Spring Shopping Mall, is in a
very strategic environment and will play a significant role in attracting the target audience,
which includes university students, school students and other youngsters. In the initial days
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following launch, a certain discount may be given to attract more people. Apart from this,
professional teams from across Malaysia can be invited to endorse our brand and further
popularize the game across the Kuching area.
Substantial marketing will be done at least a month prior to the launch to attract as many people
as possible by using social media channels and adverts in the most populated areas of Kuching.
An additional RM 7,000 will be allocated for this purpose. An online booking service will also
be setup to allow the public to purchase tickets prior to arrival at the arena and a certain amount
of discount for online bookings may also be given.
4.0 Business Legal Considerations
4.1 Private Limited Company

In Malaysia internationals can do business in manufacturing or in-service sector without any
restriction. Foreigners are allowed to register a Sendirian Berhad in Malaysia which will give
then 100% ownership which depends on the type of business. This is locally equivalent to
private limited and is easiest way to invest in Malaysia. This all is maintained by Malaysian
Investment Development Board (MIDB). To open a private limited company by a foreigner,
two directors of the company must be the residents of Malaysia and company should have 2 to
50 members and a minimum of two shareholders. Private limited company can be registered
through Companies Commission of Malaysia called Suruhanjan Syarikat Malaysia (SSM).
4.2 Occupational Health and Safety

The occupational health and safety act 1994 are in the laws of Malaysia. The objectives of this
act are to safely secure the health and welfare of person who are working in a specific area. It
also protects the person from other hazards and risks which are involved at the workplace and
provide extra safe environment to the workers which will in return increase the productivity.
According to safety and health act 1994 “A person without reasonable excuse fails to follow
without any enhancement or proscription notice which is issued under section 48 shall be guilty
of an offense and shall on sentence, be guilty to pay fine which will not be exceeding fifty
thousand ringgits or imprisonment for 5 years or both. Furthermore, fine of 500 ringgits will
be charged for each day during which the delinquency continues.
4.3 Sales and Income Tax

In our business sales and service tax is mandatory since we are providing the customers with
adequate services inclusive of equipment, prior to 2019 general sales tax was charged since the
government has lifted off GST therefore SST will only be applicable. Apart from this
government allows the business to register for SST and then apply it later until the business
exceeds the threshold of turnover. The SST set by the government is 6%. The income tax is
20% of the overall.
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4.4 Company Name Registration
The registration of a business in Malaysia is under commission of Malaysia (SSM). The
registration can be done through online or at SSM office. Once a business is setup, the next
step will be to prepare the documents of registration which will be signed by the shareholders.
The time required for this process will be around two to three business days, and in 5 business
days the SSM digital incorporation certificate will be granted. Lastly, we have to submit form
24, 44 and 49 which will take approximately one day to process.
4.5 Business Licensing

Kuching city has a local governing body which is called Kuching city council which is divided
by two because there are two different areas which are DBKU and MBKS. We have referred
to either one of these depending on where our business is situated. Business license will be
obtained by applying online. The required forms will be form of sign board, license application
form and application for advertisement license.
4.6 Company Name and Registration

For the business to be registered in Malaysia, few aspects must be considered. The six main
aspects which are necessary to register a business in Malaysia are under commission of
Malaysia (SSM). They are as follows:
• Company name of the business
• Activities that are involved in the business
• Residential Address of the business
• Paid capital to start the business
• The shares of each shareholder in the business
• Copy of MYKAD/Passport of all the directors of the business
As mentioned before the company name is registered through SSM. In this procedure four
names will be proposed with a name approval form to check the availability of the name. The
business name cannot be longer than 50 characters, no words to religion or race are permissible,
and names which are affiliated with royal families of government are not accepted.
1) Company Name
Hence for the company name, it was decided the following four names will be submitted:
1) “Shoot for fun”

2) “The Amusement Cave”
3) “The Laser Arena”
4) “Blazer Lasers”
2) Activities
Then, the activities involved, such as the laser tag arena and its competitive military style
missions based combat simulation was included in the activities. The arcade like games that
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will be in the waiting area were also included. These are the two major activities involved in
our business.
3) Address
The residential address of the company was listed as “LOT 214, 2nd Floor, The Spring
Shopping Mall, Jalan Simpang Tiga, Kuching, 93300 Sarawak” since the arena is located
inside the shopping mall alongside the cinema.
4) Capital
The amount of money required as the capital will be paid accordingly to the authorities. The
details of this amount are listed in the entry strategy section of this report. The capital amount
is estimated to be RM 180,000 including advance running costs for 3 months.
5) Shares
The shares for the business are set to be divided equally among the group members and hence
a board of directors of five people has been initially formed.
6) Documents and Registration
Finally, all the required documents as well as the main aspects above will be submitted to the
commission of Malaysia (SSM) for the business to be registered under the preferred name “The
Amusement Cave”.
5.0 Marketing Analysis
5.1 Target Markets

5.1.1 Primary Target Market: School and College Students Age Group (10-17)
The ideal customers for this business will be the youngsters or students. There are few reasons
for which the youngsters and students are the ideal customers. Firstly, the mall is in Simpang
Tiga area which is centering almost 25+ schools and colleges. Moreover, the college students
go through a lot of stress and to relieve that stress they have very few options in Kuching.
Again, since the laser tag was inspired from combat video games, and those video games are
mainly played by the younger generation, therefore the younger generation will be quite easily
being the ideal customer for this business. Furthermore, younger generation usually spends a
good amount of time playing video games limiting physical activities in their daily routine.
This will encourage parents to push their children to get involved in some physical activities
while having equal or more fun than playing video games at the expense of few bucks. In 2018,
the calculated population of Kuching was 570,000 approximately. Of which at least 10 percent
studies in schools and colleges. And it is expected that on average a student will visit at least
twice in a year.
5.1.2 Secondary Target market: University Students Age Group (18-25)

The second most targeted market will be the university students in Kuching. The Amusement
Cave is very close to one of the largest universities in Kuching which is the “Swinburne
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University of Technology Sarawak Campus”. The students of this university also suffer from
the same problems as the above-mentioned primary target. Therefore, most of the reasoning
will be same as the primary target. The main reason they cannot be the primary target because
the university runs with full students for only 7 months annually. But nevertheless, these
students are expected to visit 2 times on average in 6 months’ duration while they are in
Kuching.
5.1.3 Tertiary Target market: Young Adults Age Group (26-35)

Laser tag is not only limited to younger generation but also the target market covers young
adults if the marketing is done well. In United States, it has been found that the laser tag is
played by almost all the age group from 15-35. This is because the laser tag doesn’t only let,
people enjoy the game but also provides an opportunity to interact with new faces. Another
reason can be the parents escorting the children will need to wait in the waiting lounge.
Probably instead of waiting for the game they might want to try out the laser tag with their
children. Young Adults of this generation are usually tied with many responsibilities and most
of them have to lead a sitting life. This game might help them to burn a few calories while
enjoying the game. Even though this market size is not like the primary or secondary target
markets, still there is a good number of chances that these people might want to play the laser
tag game at least once in their lifetime. Considering Kuching has 20 percent young Adults,
which also boosts the market size.
5.2 Market Structure and Industry

The market structure for ‘The Amusement Cave’ is in a state of low competition. Firstly, there
isn’t any immediate competition for this business because it is the only laser tag in Kuching
and also in the whole Sarawak. There are few laser tags available in West Malaysia such as
Laser Battle, Laser Quest and Laser Warzone etc. but that would not be our concern in terms
of customer distribution because it’s far from Kuching. But nevertheless, those companies’
ticket prices will be considered before setting the price of our ticket. Moreover, there are other
entertainment businesses in Kuching that will be considered as potential competitors which
provides similar games such as paint ball and air soft. The companies providing such games
are far from the town and usually their price rate is around 40RM. So, placing our business in
the centre of Kuching gives us the benefit over them. Furthermore, the prices of our ticket will
be way less than theirs. In other terms, our company will try to beat them by a niche market
strategy where we will take advantage of low prices of ticket sales.
5.2.1 Market Share

The industry that ‘The Amusement Cave’ is in would be arena-based activity industry. It might
also fall into certain indoor gaming industry where similar activities are provided. Laser tag
game is not something that someone will be played every day. People will have many options
for getting entertainment. Therefore, this business will not have any prominent share in the
entertainment industry like movie theatres. And it’s also a fact that laser tag doesn’t have any
major portion in the global market.
Based on a hypothetical assumption we have divided the indoor gaming market in Kuching
and found that there are almost 20 renowned places in Kuching providing the indoor gaming
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services that includes bowling, arcade, paintball, pool and gaming zones. Among them,
bowling centres top the indoor gaming industry in Kuching with approximately 25% of the
market share. The Amusement Cave is expected to get 4% of the market share and which is
huge considering it’s the only laser tag in Kuching. Below a Pie chart shows the illustration of
the market shares.
Figure 1: Market Share of the business
6.0 Marketing Strategy
6.1 Channels of Marketing

The most important role played in every business is the marketing channels they have.
Marketing channel is the link between the customer/ consumer and the business. It plays a vital
role in helping customer to find the product they require. To promote our business, we are
relying on digital marketing, it’s an effective way to outreach more customers.
Social media
These days’ social media are playing a major role in the promotion of products, nowadays it’s
the biggest platform for advertising. Instagram and Facebook are the two giants which are not
just used for sharing photos, they have enlarged into stage where all the major companies and
individuals boost their product. On the other hand, this channel will be most appropriate way
by which our customers can see the latest promotions and offers.
Website
By pursuing, the business of laser tag and having a branch in Kuching is not enough. During
this technological world, to make your business up to dated we must have a website that can
help your business. Website will provide early bookings, new membership which can be
obtained through website which will help the customers. By having a website, we can attract
customers by giving promotions for laser tag. On website you can provide your contact and
location of your business which will also help the user.
Email
By having a business email, we can have an efficient response between customer and in this
way, they will be able to know about promotions and how they can benefit from them.
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Word of mouth
It’s one of the most effective marketing channels. To have this you should first have good
customer attraction and excellent services to impress the users and they will tell friends and
relatives which will boost the business.
6.2 Promotion Strategy

The promotion plan strategy executed by our company includes tempting discounts to our
customers. We will focus of word of mouth marketing, vouchers and discounts will be provided
to the customers who will bring new customers. Customers who will book early through
website will be given discounts. Famous YouTubers and vloggers will also be part of our
marketing strategy. Vloggers and YouTubers will be allowed to play for free so that they can
later review our arena and services which will attract hefty number of customers. Audience
will be given a discount by the YouTubers, which they can use on our website to get special
discounts and this will be done on barter basis.
6.3 Pricing Strategy

Following ample research, the rates decided for laser tag was chosen as shown below
Table 1: Pricing strategy for the business
Type of activity Price per Description

unit
Laser Tag 20 Weekdays – 15min per
game
Weekends – 20min per
game
Other activities Dart 3
Air hockey 3 Coin based. 1 coins for 1
Foosball 3 game of each activities.
Billiard 3
Food and Cup Noodles 4
Beverages Crackers 2.5
Mineral Water 1 Hot water provided by a
Coffee Can 2 dispenser when someone
Tea Can 2 uses cup noodles.
Milo Can 2
Kit Kat Ice Cream 10
Milo Ice Cream 10 750 ml
Berry Ice Cream 10
Different rates were chosen for weekdays, weekends and public holidays as the crowd would
be bigger during weekends and public holidays compared to normal days. The rates were
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differed but the price was kept constant. We have added extra time on each game on weekdays
while keeping less time on each game on weekends.
As for the rest of the facilities, the prices for foosball and billiards are set low since they have
no running cost and therefore would consistently bring in profit. Since, the electronic dart
machines and additional machines consume electricity. The total running cost was considered
along with the costs of other laser tag company and then pricing was set appropriately.
7.0 Competitive Analysis
7.1 SWOT Analysis

SWOT Analysis is an effective tool that is utilized for strategic management for a business.
While the business is still in conceptual stage, SWOT Analysis can help analyse the key points
involved in the business to estimate the strengths, weaknesses, opportunities and threats the
business may face later when it starts running. By analysing these factors, the business may
excel by improving their strengths, undermining the weaknesses, recognizing and utilizing
opportunities and to be aware of threats and try to eliminate or form countermeasures against
them. The SWOT analysis for our business is represented in a graphical format below.
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Figure 2: SWOT Analysis
7.2 Porter’s Five Forces Analysis

The main idea of the porter’s analysis is that the competition of a business is determined based
on five forces. By comparing these forces with competitors, the key points in the business are
determined which can work in favour of our business. These five forces are as follows:
Figure 3: Porter's Five Forces Analysis
Rivalry in the Industry - Low
The business involved the indoor gaming industry such as gaming arcades and other similar
entertainment amenities. However, Laser Tag specifically is unique in the market and doesn’t
have any existing competition, thus having a low competitive rivalry in the industry. As for the
indoor gaming, our business provides a laser tag arena as well as other games such as foosball
table, billiards etc. to get an edge over other businesses.
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Power of Suppliers - Low
There isn’t much effect to our business based on the supplier’s power, since the laser tag and
arcade equipment is a one-time investment along with upgrades, maintenance and repairs later
on. Thus, the Supplier’s Power is low.
Power of Customers - High
Since this is an entertainment business, the customers’ satisfaction and their willingness to play
will determine the amount of sales done on a daily basis. The customers may affect the business
by showing disloyalty or by not being interested, which can cause sales to go down. Hence, the
Buyer’s Power is high.
Threats of new entrants - Moderate
New businesses that open in the industry with similar operations can be a threat to our business.
Since, our business is the only one currently operating, with strategic pricing, the new
businesses may have an edge. However, our business also utilizes additional facilities and
strong marketing strategies which can still counter other new businesses.
Threats of substitute goods - Low
Although other competitive team-based activities like paintball exist, the threat is still low from
other substitute goods due to the uniqueness of our business.
8.0 Quality Control and Maintenance
Quality Control plays a vital part in any business model. It is the way to provide the customers
the same or better services throughout the business span. We have divided the quality control
in few distinct aspects.
8.1 Equipment Quality Control and Maintenance

The general performance of the laser tag equipment will be the first priority of the business.
We need to make sure the equipment is in good condition at the start of the game. At the end
of each hour there will be a break of 5 minutes where the equipment will be tested. In addition,
the health of laser tag equipment will be monitored by an electrical engineer at the end of each
day.
8.2 Software Improvement and Maintenance

Second priority will be given to the software maintenance. The software will be also provided
buy the laser tag equipment supplier LASERWAR. Software has minor issues now and then.
But if the software doesn’t work properly, the business will lose lots of customers, especially
the ones who are competitive. One of the staff is a software engineer, who will monitor all the
games while detecting any flaws in the software. If the software has any problem, then the laser
tag game will be closed for the amount of time it needs to be repaired.
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8.3 Arena Improvement and Maintenance
The Amusement Cave needs to maintain an appreciable ambiance. In order to do so, we need
to invest a huge amount of money for furnishing the waiting lounge. The theme of the painting
and wall decoration need to be well matched with the type of business we are doing. Then to
maintain the inside setting we have appointed two staffs who will be responsible for cleaning
and overseeing the waiting lounge area. At the end of each day the arena and the lounge will
be thoroughly cleaned. There will be two air-con placed in order to maintain the air
temperature.
8.4 Feedback Platform

Next, the next part of the quality control is the platform on which customers can put their
feedbacks. The customers can give feedbacks on the online website of the company. Moreover,
the customers can add their review in the pages made on social media sites. Based on those
reviews the company will decide on the changes that they need to make.
8.5 Damage Control

Damage Control needs to be considered for most of the non-current assets. Firstly, the damages
to the laser tag equipment can occur during any games. The software can ping the time on
which the equipment stopped working. Then the CCTV footage can be played to find out the
reason behind the accident. There will be a policy for the players to pay a certain amount of
fine if they have willingly damaged or tempered the equipment. There is also policy which tells
that any players trying to melee others, will get a lifetime ban. Similarly, someone altering the
coin operated machines will get the same punishment. Since, there is a repair kit available, the
daily operation will not be hindered unless a big incident.
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8.6 House of Quality
Figure 4: House of Quality
9.0 Financial Analysis
9.1 Establishment Cost

The initial cost of establishing the business includes the registration costs, equipment, furniture
and some additional utilities. This is a one-off expense and its estimated costs have been listed
below.
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Table 2: Estimated Establishment Costs
ITEM COST (RM)

Arena Setup
Partition Boards, Interior Design, etc. 10,000.00
Legal Fees
Business Registration 1,000.00
Income Tax Registration 300.00
Intellectual Property 2,000.00
Equipment Costs
Laser Tag Bundle (Laser War) 43,000.00
Arena Sound System 1,000.00
Arena Smoke Machine 1,000.00
Computers (3 pcs) 1,200.00
Fridge 600.00
Foosball Table 615.00
Billiards Table 2,400.00
Electronic Dart Board 1,030.00
Air Hockey Table 4,200.00
Scoreboard Screen 2,000.00
Television 600.00
Air-con 4,000.00
Utilities
Gear Room Utilities 200.00
Cleaning Utility 150.00
Security Systems
CCTV 750.00
Furniture
Single Seater Sofa (10 pcs) 3,350.00
Cushion Stool Round (2 pcs) 998.00
Chairs (5 pcs) 500.00
Tables (3 pcs) 900.00
Wall Paintings (4 pcs) 600.00
Wall Clock (1 pc) 100.00
Display Shelf (1 pc) 300.00
Total Establishment Cost 82,793
9.2 Purchasing Cost

The purchasing cost in the cost required for buying all the necessary equipment and utilities
needed to start the operations. In the case of our proposed business, the business will have most
of the equipment purchased at the start as a one-time investment. The equipment, utilities and
the inventory costs are shown below in the tables below.
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Table 3: Estimated equipment and utilities purchasing cost.
Items Quantity Unit price Price Total price

(RM) Reference (RM)
Laser Tag Bundle 1 43,000.00 Laser War 43,000.00
Arena Sound System 2 500.00 Lazada 1,000.00
Arena Smoke 4 250.00 Lazada 1,000.00
Machine
Arena Cardboard 1 10,000.00 Flexxo 10,000.00
Walls
Gear Room Utilities 5 40.00 Lazada 200.00
Computers 3 400.00 Local Shop 1,200.00
Fridges 1 600.00 Local Shop 600.00
Display Shelves 1 300.00 Local Shop 300.00
Foosball Table 1 615.00 Lelong 615.00
Billiards Table 1 2,400.00 Lelong 2,400.00
Electronic Dart Board 1 1,030.00 Lelong 1,030.00
Air Hockey Table 1 4,200.00 Sportex 4,200.00
Scoreboard Screen 1 2,000.00 Amazon 2,000.00
Television 1 600.00 Amazon 600.00
Single Seater Sofa 10 335.00 Flexxo 3,350.00
Cushion Stool Round 2 499.00 Flexxo 998.00
Chairs 5 100.00 Flexxo 500.00
Tables 3 300.00 Flexxo 900.00
Wall Paintings 4 150.00 Local Shop 600.00
Wall Mounted Watch 1 100.00 Lazada 100.00
Cleaning Utility set 1 150.00 Local Shop 150.00
CCTV Camera 5 150.00 Ezbuy 750.00
Air-con 1 4,000.00 Lazada 4,000.00
Total cost 79,493.00
Table 4: Estimated inventory purchasing cost
Items Quantity Unit Total price Total price Total price

price (RM) (RM) (RM)
(RM) 2020 2021 2022
Cup Noodles 150 2.20 330.00 345.00 360.00
Crackers 240 1.50 360.00 375.00 390.00
Mineral Water 450 0.60 270.00 285.00 310.00
Coffee Can 120 0.90 108.00 120.00 138.00
Tea Can 120 0.90 108.00 120.00 138.00
Milo Can 120 0.90 108.00 120.00 138.00
Kit Kat Ice 120 5.50 660.00 700.00 720.00
Cream
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Milo Ice Cream 120 5.50 660.00 700.00 720.00
Berry Ice 120 5.50 660.00 700.00 720.00
Cream
Total purchasing cost per month 3264.00 3465.00 3634.00
Total purchasing cost per year 39168.00 41580.00 43608.00
While projecting the inventory cost of the next two years we have included an inflation of 5%.
9.3 Production Costs

The table below shows the costs of all the equipment that will be required to set up our business
and as also for how many years it will be useful. All the equipment purchased is brand new.
The depreciation value per year for each product and their residual value after three years is
calculated below. All the calculations are based on estimates founds on websites.
Items Total Residual value Depreciation Accumulated
price after 3 years per year depreciation in
(RM) 3
years
Laser Tag 43,000.00 17200.00 8600.00 25800.00
Bundle
Arena 2,000.00 800.00 400.00 1200.00
Machineries
Side games 8245.00 3298.00 1649.00 4947.00
Equipment
Utilities 350.00 140.00 70.00 210.00
Repairs and Total price Total price Total price

Frequency Unit price
maintenance (RM) 2020 (RM) 2021 (RM) 2022
Equipment 10 30 300.00 300.00 300.00
maintenance
Electronics 4 40 160.00 160.00 160.00
maintenance
Furniture maintenance 1 50 50.00 50.00 50.00
cleaning 30 10 300.00 300.00 300.00
Software maintenance 1 49.99 49.99 49.99 49.99
Total cost per 814.00 814.00 814.00
month
Total cost per 9768.00 9768.00 9768.00
year
9.4 Running Cost

The cost of running the business considers all the expenses in operating the facility which is
calculated on a yearly basis. This includes marketing, maintenance, wages, rent and inventory
to name a few. A breakdown of this is given in the table below.
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Table 5: Estimated costs of running the business
ANNUAL COST ANNUAL COST ANNUAL COST

ITEM
(RM) 2020 (RM) 2021 (RM) 2022
Premises
Rental Charges 300,000.00 300,000.00 300,000.00
Utilities
(Internet, 3,000.00 3,000.00 3,000.00
Telephone, etc.)
Marketing 7,036.00 7,336.00 7,636.00

Maintenance 9,768.00 9,768.00 9,768.00
Wages
Entry Staff 21,060.00 21,600.00 22,200.00
Coach 22,680.00 23,400.00 24,000.00
Gear Staff 22,680.00 23,400.00 24,000.00
Tech Staff 32,400.00 33,600.00 35,400.00
Reception Staff 48,600.00 50,400.00 54,000.00
Security 12,960.00 14,400.00 16,800.00
Electricity 25,000.00 25,000.00 25,000.00

Inventory (Food
39,168.00 41580.00 43608.00
Items)
Bank Loan
4,065.00 4,065.00 4,065.00

Interest Payment
(@5%) (One off)
Instalment 40000.00 40000.00 40000.00

Total Running
588,417.00 597,594.00 609,477.00
Cost
Figure 5: Shows the calculation for the compound interest for the loan
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9.5 Salaries
Eight staff members are required for the business. The salaries are set according to the job type
and skill type of that position. The highest salary is paid to the Tech staff as he will be required
to do most of the technical stuffs on the laser tag game. Moreover, all the salaries are set in
such a way that it is easier for the company to make it per time base. The staff and their
respective salaries and wages are as follows.
Table 6: Staff Salaries per month
Wages
Wages Wages Total Total Total
in (9
Staff Units RM/ RM/ Salaries Salaries Salaries
hours
hour Month 2020 2021 2022
a day)
Entry 1755.0
1 6.50 58.50 1755.00 1800.00 1850.00
staff 0
1890.0
Coach 1 7.00 63.00 1890.00 1950.00 2000.00
0
1890.0
Gear staff 1 7.00 63.00 1890.00 1950.00 2000.00
0
2700.0
Tech staff 1 10.00 90.00 2700.00 2800.00 2950.00
0
Reception 1350.0
3 5.00 45.00 4050.00 4200.00 4500.00
staff 0
1080.0
Security 1 4.00 36.00 1080.00 1200.00 1400.00
0
Total Salaries (for the first month) 13,365.00 13,900.00 14,700.00
Total Salaries (for the first year) 160,380.00 166,800.00 176,400.00
9.6 Marketing Cost

Marketing cost for our company was calculated according to the things that were stated in the
previous section. We are spending hefty amount of money on marketing in order to gather more
customers. We will be persistently running ads through social media and discounts and
promotions will be available most of the time. The posters will be printed from Asahi Arts, a
printing shop in Jalan Song. We will distribute flyers in most of the schools and universities.
Tripod stand banners will be placed in shopping malls to gather audience. The details of
marketing expenses are shown in table below
Table 7: Marketing cost for all the years
Marketing Cost (RM) of 2020 (in 2021 (in 2022 (in

Features
Channel package RM) RM) RM)
Facebook 2500 RM 1.11 per click 2886.00 2986.00 3186.00

advertisements and RM 29.62 for
1000 views
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Flyers and 4000 flyers 0.35 RM per flyer. 1400.00 1500.00 1600.00
Brochures
Posters 20 posters RM 100 per square 2000.00 2100.00 2100.00

meter.
Promotion Discount to150 RM 5 will be 750.00 750.00 750.00

customers removed from their
total cost
Total marketing cost per year 7036.00 7336.00 7636.00
9.7 Administrative Cost

This section includes all the expenses in covering the costs for license permit (legal fees). A
breakdown of this is given in the table below.
2020 2021 2022
No. Description Remark
(RM) (RM) (RM)
1 Registration fee (for company) One off 1,000 - -
2 Domain name fee One-off 300 - -
3 Intellectual Property Payment 2,000 - -
for 10 yrs
4 Business premise rental Annually 300,000 300,000 300,000
5 Licensing and permit Every 2 2,000 - 2,000
(MBKS/DBKU) years
6 EPF (Employee Providence Annually 20,850 20,850 20,850
Fund)
7 Other utilities (internet plans, Annually 3,000 3,000 3,000
etc.)
8 Insurance Annually 6,000 6,000 6,000
9 Loan Interest (@5%) Annually 4,065 4,065 4,065
10 Loan Instalment Annually 40,000 40,000 40,000
11 Electricity Annually 25,000 25,000 25,000
Annual Cost 404,215 398,915 400,915
The costs that are fixed are expected to recur annually in order to smoothly continue operations.
The estimated breakdown is listed below.
Table 8: Total fixed costs
Amount per
Amount per Amount per
Item annum (RM)
annum (RM) 2020 annum (RM) 2021
2022
Personnel Expenses 160,380.00 166,800.00 176,400.00
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Financial/Administrative 404,215.00 398,915.00 400,915.0
Expenses
Depreciation Expenses 13,898.60 13,898.60 13,898.60
TOTAL 578,493.60 579,613.60 591,213.60
The costs that are expected to vary for the initial year of operations are listed below in the given
table. In accordance with the Inland Revenue Board of Malaysia, as of July 2019, there is an
ongoing charge of 6% SST.
Table 9: Total variable costs
Amount per Amount per year Amount per year

Item
year (RM) 2020 (RM) 2021 (RM) 2022
Purchasing Cost
39,168.00 41580.00 43608.00
(Inventory)
Maintenance Expenses 9,768.00 9,768.00 9,768.00
Marketing Expenses 7,036.00 7336.00 7636.00
TOTAL 55,972.00 58,684.00 61,012.00
9.8 Break-Even Analysis

The break-even analysis gives a nearly accurate estimation for the sales required to cover all
costs, including both variable and fixed costs.
𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶
𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 − 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 =
(𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑝𝑝𝑝𝑝𝑝𝑝 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 − 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑝𝑝𝑝𝑝𝑟𝑟 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢)
𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = 578,493.00
𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑝𝑝𝑝𝑝𝑝𝑝 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢

= 79% 𝑜𝑜𝑜𝑜 𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 + 15% 𝑜𝑜𝑜𝑜 𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 + 6% 𝑜𝑜𝑜𝑜 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠
𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑝𝑝𝑝𝑝𝑝𝑝 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 = 15.8 + 0.45 + 0.30 = 16.55
𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑝𝑝𝑝𝑝𝑝𝑝 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 = 55,972.00/Break-even
578,493.00
𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 =
(16.55 − 55,972.00/Break even point )
𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 = 38,337 Units per year
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That means 30285 laser tag tickets, 5750 side activities token and 2300 random snacks needed
to be sold annually to reach the breakeven point.
That also means that 83 laser tag tickets, 16 side activities token and 7 random snacks needed
to be sold per day to reach the breakeven point.
10.0 Sustainability
10.1 Economic Sustainability
The targeted audience will need a few bucks to have this amazing experience. It is most likely
to attract more audience for the snacks and beverages and a large waiting lounge. The profit
from the laser tag game, side snacks and beverage will be used for paying the rent, salaries and
electricity bill. Maybe some money will be kept aside for maintaining the laser tag hardware
and buying hardware. As the business targets the young generation, fraction of the profit can
be used for advertising in high schools and colleges to attract more audience.
10.2 Environmental Sustainability

Awareness of the damage being done to the environment has been brought to light to the greater
society in the past few decades. This has urged people to lead sustainable lifestyles and put
pressure on business to adopt sustainable practices. Therefore, for companies to attract more
customers and foremost do its part in preserving the environment. Our business also endorses
a sustainable lifestyle and does its best to adopt sustainable practices. (Davis, 2011). Selling
Food and Beverages are one of the ways The Amusement Cave is going to generate revenue.
To make sure we are implementing sustainable practices properly, the containers of the snacks
are at least recyclable and the containers of drinks such as cans be reusable. In a bid to reduce
plastic pollution, we provide cheap paper straws instead of plastic straws. Our business will
also implement trash bins with different types of materials to encourage proper waste
segregation which would in turn reduce costs in waste disposal as the waste would be most
likely to be separated beforehand. (Emsolutions.co.uk, 2016).
11.0 Management Team and Operating Plan

11.1 Management Team
Eight staff members are required for the business. The staff and their job description are as
follows:
• Entry staff – located at the entry point, responsible for registration.

• Coach – guides the players for the game, responsible for game instructions and match
supervision.
• Gear staff – helps the players gear up, responsible for familiarizing players with gear
and operations.
• Tech staff – oversees the game and scoring system through the PCs, responsible for tech
related problems in software or in the game.
• Reception staff (3 people) – cashier responsible for tickets, coins, rewards and
food/snacks. Other two to overlook the waiting lounge activities.
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• Security – safe keeping, responsible for securing premises/personnel and general
surveillance.
11.2 Operation Flowchart

11.2.1 Laser Tag
As customers now a days prefer online booking over counter booking because it’s a less of a
hassle and time saving. So, we have given this option on our website and booking can be made
through that in a matter of few minutes. After customers have selected the date and time for
the game, they make their way to the arena at their respected date and time. Moreover, there is
an option of counter booking, but customers are entertained if the arena is vacant at their
requested time or they have to wait for their turn to come. Before the game is started all the
team members must input their names to display on the scoreboard and gear up. After that
instructions are given, and players are allowed to enter the arena and game is started. Players
are alerted one minute before the game ends and their respective scores are shown on score
board.
Selling Tickets Setting up the arena Register all the player

( Online/Counter) for the match names
Game Briefing before Gearing up players

Monitoring the match
the match for the match
Updating and Checking all gear has Update achievements

displaying scores been returned and high scorers
Figure 6: Operation Flowchart
11.2.2 Food and Beverages

Official suppliers are provided with the details of required items, once the order is received by
the supplier, they deliver the requested items which are stored as new supplies, moreover these
items are restocked when needed. These items are sold on daily basis and are restocked at the
stall. Counters are cleaned when needed and at the end of the day storage is checked and orders
are placed to the supplier according to the necessity. Shown below is the supply chain cycle
for food and beverages.
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Order the
required items
Estimate sales from the supplier
for the next Receive
week provided
supplies
Check inventory
and record item
Store new
amounts
supplies
Clean
counters Restock
used
supplies
Restock if Sell Food and

required Beverages
Figure 7: Supply Chain cycle for inventory
11.2.3 Additional Games

The additional games provided include Billiards pool table, Foosball, Air Hockey and Dart
machines. The procedure to follow for the operation of these games will be:
1) Selling the coins from the counter
2) Letting customers choose their preferred game
3) Providing equipment and guidance if needed
4) Keeping score and track of time for each game
5) Resetting the tables and collecting the equipment back
11.3 Facilities and Equipment

11.3.1 Facilities
The business contains additional facilities apart from just laser tag, containing the following
items:
• Entertainment – Foosball Table, Billiards Table, Dart Machine, Air Hockey Table
• Laser Tag – Arena, scoreboard
• Other – Table and chairs, Sofas, decoration and posters, TV, air cons.
11.3.2 Machineries
The machineries involved will be as follows:
• Smoke machines for the arena effects
• Sound system for arena effects
• Fridges and shelves to store snacks and drinks
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• PCs inside and outside the arena to register and track progress of score and
players
11.4 Location
The location chosen for our business setup is The Spring Shopping Mall at the 2nd floor next
to the MBO cinemas. The characteristics of the location are based on the considerations that
were decided upon prior to choosing the location. The Spring Shopping Mall is located in the
midst of a highly populated area where most people have easy access to the mall on a regular
basis.
The mall has been one of the most popular and busy ones in Kuching. With people from all
over Kuching visiting for shopping, having lunch and dinner, watching movies etc. It already
has a number of shops running including a grocery store (Takiong), coffee shop (StarBucks)
and other food shops (Nandos, KFC, Pizza Hut, Food Court). In a nutshell, the mall attracts a
lot of people to visit on a daily basis. The mall is also in the centre of around 30 schools and
universities geographically, which is a positive aspect since the laser tag business has the
primary audience as teenagers and students.
The 2nd floor of the mall consists of a large vacated space (around 6000 sq ft) alongside the
MBO Cinemas, which is an excellent location to setup another entertainment amenity. People
have a higher chance to get attracted to our facility if they can see it when they are out to relax
and have fun. This makes it an ideal space to setup our business.
However, since the rental space is inside of the shopping mall, the rental cost is quite high
(Estimated Rental cost of RM 25,000 per month).
Figure 8: Geographic Information System with nearby schools and university
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11.5 Layout of Business
11.5.1 Required Space
The main area requirements for a typical laser tag setup are as follows:
1) An Arena of 2000 sq. ft.
2) Waiting Lounge area of 2000 sq. ft.
3) Equipment Room of 650 sq. ft.
4) Briefing Room of 350 sq. ft.
Hence, the area for the layout was chosen as 5096 sq. ft., which can accommodate the waiting
area, arcade games area and the toilets. This is also fitting for our chosen location as the location
has ample amount of space as shown below.
Figure 2: Area of layout
Figure 9: Rental Area shown on the map
91 feet
22 feet
Waiting Arena
56 feet
Lounge (Play Area)
37 feet 38 feet
Figure 10: Layout of Business
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11.6 Safety
According to the Australian Consumer Law (ACL), consumer guarantees give consumers the
right to a refund if a product is unsafe. If you don’t comply with a consumer guarantee, your
customers have a right to take action against you. This is the case even if the problem with the
good was caused by the manufacturer. However, our Laser Tag service is harmless as the laser
tag equipment is unlikely to cause harm and therefore adheres to the safety rules and regulations
perfectly.
In our case as our job is with relevant with the means of providing service, so it becomes
obvious that we need to monitor occupational health safety at all the time per the OHS act
1994. To ensure that we have arranged our safety concerns accordingly below:
• CCTV cameras for ensuring the capture of evidence for any unexpected activities inside
the business area. This can help to find out vandals or players violating the game rules.
• Armed security guard at the for the full business area ensuring the safety of all the
people from any unexpected criminal violence.
• The suppliers’ practices OHS act 1994 thoroughly.
• Damage control policy is set so, that people will reduce bad conducts being concerned
about its outcome.
• Insurance helps the company to pay for any damages.
• Fire extinguisher, alarm and emergency exit is available for taking measures against
incident involving fire.
• Inside the laser tag game safety instructions are given to the players to reduce the risk
of any accident.
12.0 Predictive Analysis and Business Viability

12.1 Sales, Income & Profit Forecast
Table 10: Estimated costs of running the business
Price Income in a Income in a Income in a

Frequency
Type of activity per month 2020 month 2021 month 2022
per month
unit (RM) (RM) (RM)
Laser Tag 4200 20 84000 84000 84000
Dart 600 3 1800 1800 1800
Air
Other 750 3 2250 2250 2250
hockey
activities
Foosball 750 3 2250 2250 2250
Billiard 2700 3 8100 8100 8100
Food and Cup
150 4 600 630 660
Beverages Noodles
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Crackers 240 2.5 600 630 660
Mineral
450 1 450 480 510
Water
Coffee
120 2 240 270 300
Can
Tea Can 120 2 240 270 300
Milo
120 2 240 270 300
Can
Kit Kat
Ice 120 10 1200 1230 1260
Cream
Milo Ice
120 10 1200 1230 1260
Cream
Berry
Ice 120 10 1200 1230 1260
Cream
Total income per month 104370 104640 104910
Total income per year 1,252,440.00 1,255,680.00 1,258,920.00
6% Sales
15%
Laser Tag
79% Side game
Food and Beverages
Figure 11: Pie chart that distributes the income sources
The profit forecast is the generated net profit of the company after deducting the running costs
and the establishment costs. At first the company will go through a loss for few months, then
after the payback period the company starts to make profit. The payback period of the company
is 9 months. After 9 months the company will start to make profit. First year profit is a bit lower
than the 2 subsequent years as in those years there is no establishment cost.
Table 11: Estimated profit (for the first three years)
Year Total Establishment Running Other Profit

income Cost Cost Expenses forecast
(RM) (RM) (RM) (RM) (RM)
2020 1,252,440.00 82,793.00 588,417.00 28,850.00 635,173.00
2021 1,255,680.00 - 597,594.00 26,850.00 631,281.00
2022 1,258,920.00 - 609,477.00 28,850.00 620,593.00
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12.2 Financial Ratios
Considering operating cycles as 365 for a set inventory amount, the following ratios were
obtained. The net working capital to sales ratio to measure liquidity is as follows:
Current Assets−Current Liabilities

𝑁𝑁𝑁𝑁𝑁𝑁 𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑡𝑡𝑡𝑡 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 = Sales
524,979 − 39,168
= = 0.388 (𝑓𝑓𝑓𝑓𝑓𝑓 𝑡𝑡ℎ𝑒𝑒 𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦 2020)
1,252,440
Table 12: Financial Ratios
Financial Ratios Formula 2020 2021 2022

Current Assets
Current Ratio 14.40 21.65 26.49
Current Liabilities
Current Assets − Inventory
Quick Ratio 13.40 20.65 25.49
Current Liabilities
Capital Turnover Cost of Sales
0.65 0.69 0.73
Ratio Net Working Capital
Return on Total Net profit before interest and taxation
× 100 111.35% 71.95% 56.10%
Assets (ROA) Average total assets
Net Profit Margin: Net profit before interest and taxation

Sales
× 100 52.80% 52.35% 51.37%
Gross Profit Gross Profit

× 100 96.87% 96.69% 96.54%
Margin: Sales
12.3 Capital Investment Decision Tools

12.3.1 Net Present Value
Table 13: Net Present Value at 10% Discount Factor
Year 0 Year 1 Year 2 Year 3

Cash Flow 97207 427771.6 333688.88 252985.9
Discount Factor (10%) 1 0.909090909 0.826446281 0.751315
Present Value 97207 388883.2727 275775.9339 190072.1
NPV (10%) 237,984.57
Table 14: Net Present Value at 15% Discount Factor

Cash Flow 97207 427771.6 333688.88 252985.9
Discount Factor (15%) 1 0.869565217 0.756143667 0.657516
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Present Value 97207 371975.3043 252316.7335 166342.3
NPV (15%) 221,960.34
12.3.2 Internal Rate of Return (IRR)
𝐼𝐼𝐼𝐼𝐼𝐼 − 10 0 − 237,984.57
=
15 − 10 221,960.34 − 237,984.57
𝐼𝐼𝐼𝐼𝐼𝐼 = 84.25%
12.3.3 Payback Period
Table 15: Payback Period for 10% Discount Factor

Cash Flow 97,207.00 388,883.27 275,775.93 190,072.05
Cumulative Cash Flow
(10%) 97,207.00 486,090.27 761,866.21 951,938.26
Payback period 951,938.26/4 = 0.756 (approximately 9 months )
Table 16: Payback Period for 15% Discount Factor

Cash Flow 97,207.00 371,975.30 252,316.73 166,342.34
Cumulative Cash Flow
(15%) 97,207.00 469,182.30 721,499.04 887,841.38
Payback Period 887,841.38/4 = 0.811 (approximately 10 months)
13.0 Financial Statement and Projection

13.1 Balance Sheet
Table 17: Balance Sheets for the upcoming years
The Amusement Cave – Laser Tag and Games facility

Balance Sheet as at the end of
Year 2019 2020 2021 2022
Current Assets
Cash at Hand 97,207 524,979 858,667 1,111,653
Inventory 0 39,168 41,580 43,608
Total Current Assets 97,207 564,147 900,247 1,155,261
Non-Current Assets
Furniture 6,748 6,748 6,748 6,748
Electrical Appliances 9,150 9,150 9,150 9,150
Game Equipment (Laser Tag Bundle) 43,000 43,000 43,000 43,000
Arena Setup 12,000 12,000 12,000 12,000
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Additional Amenities (Side Games) 8,245 8,245 8,245 8,245
Other Utilities 350 350 350 350
Accumulated Depreciation 0.00 (13,898) (27,796) (41,694)
Intellectual Property/Licenses 3,300.00 3,300.00 3,300.00 3,300.00
Total Non-Current Assets 82,793.00 68,895.00 54,997.00 41,099.00
Total Assets 180,000.00 633,041.60 955,244.48 1,196,360.38
Current Liabilities
Trade Creditors 0 39,168 41,580 43,608
Total Current Liabilities 0.00 39,168.00 41,580.00 43,608.00
Non-Current Liabilities
Bank Loan 120,000 80,000 40,000 0
Total Non-Current Liabilities 120,000 80,000 40,000 0
Owner’s Equity
Owner’s Capital 60,000 60,000 60,000 60,000
Retained Profits 0 453,874 813,664 1,092,752
Total Owner’s Equity 60,000 513,874 873,664 1,152,752
Total Liabilities and Owner’s Equity 180,000.00 633,041.60 955,244.48 1,196,360.38
13.2 Income Statement

Table 18: Income Statements for the upcoming years
The Amusement Cave

Income Statement for the year ended
Year 2019 2020 2021 2022
Sales 0 1,252,440 1,255,680 1,258,920
Cost of Sales 0 39,168 41,580 43,608
Gross Profit 0 1,213,272 1,214,100 1,215,312
Expenses
Maintenance and Repairs 0 9,768 9,768 9,768
Marketing 0 7,036 7,336 7,636
Wages 0 160,380 166,800 176,400
Utilities Bill 0 3,000 3,000 3,000
Electricity 0 25,000 25,000 25,000
Area Rental 0 300,000 300,000 300,000
Equipment 79,493 0 0 0
Insurance 0 6,000 6,000 6,000
Business registration fee and licenses 3,300 2,000 0 2,000
EPF 0 20,850 20,850 20,850
Bank Loan Interest 0 4,065 4,065 4,065
Depreciation expenses 0 13,898 13,898 13,898
Total Expenses 82,793 551,997 556,717 568,617
Net Profit/Loss 0 661,275 657,383 646,695
Previous Year Profits 0 0 453,874 813,664
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Retained Profits Carried Forward 0 661,275 1,111,257 1,460,359
Retained Profits (Before Tax) 0 661,275 1,111,257 1,460,359
Income Tax (20%) 0 132,255 222,251.3 292,071.9
Sales Tax (6%) 0 75,146.4 75,340.8 75,535.2
Retained Profits (After Tax) 0 453,873.6 813,664.5 1,092,752
13.3 Cash Flow Statement

Table 19: Cash Flow Statements for the upcoming years
The Amusement Cave

Cash Flow Statement for the year
Year 2019 2020 2021 2022
Opening Balance 60,000 97,207 524,979 858,667
Cash Inflow
Sales Revenue 0 1,252,440 1,255,680 1,258,920
Investment 180,000 0 0 0
Total Cash Inflow 180,000 1,252,440 1,255,680 1,258,920
Cash Outflow
Cash Flow for Operating Activities
Marketing 0 7,036 7,336 7,636
Maintenance 0 9,768 9,768 9,768
Wages 0 160,380 166,800 176,400
Trade Creditors 0 39,168 41,580 43,608
Utility Bills 0 3,000 3,000 3,000
Rental 0 300,000 300,000 300,000
Insurance 0 6,000 6,000 6,000
Business Fee and Licenses 3,300 22,850 20,850 22,850
Electricity 0 25,000 25,000 25,000
Income Tax 0 132,255 222,251 292,072
Sales Tax 0 75,146 75,341 75,535
Interest Paid 0 4,065 4,065 4,065
Cash Flow for Investing Activities
Furniture 6,748 0 0 0
Electrical Appliances 9,150 0 0 0
Game Equipment (Laser Tag Bundle) 43,000 0 0 0
Arena Setup 12,000 0 0 0
Additional Amenities (Side Games) 8,245 0 0 0
Other Utility items 350 0 0 0
Cash Flow for Financing Activities
Bank Loan Instalment 0 40,000 40,000 40,000
Total Cash Outflow 82,793 824,668 921,991 1,005,934
Net Increase/Decrease in Cash 97,207 427,772 333,689 252,986
Closing Balance 97,207 524,979 858,667 1,111,653
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14.0 Exit Strategy

If the business is predicted to go into a loss, the proposed exit strategy would be to liquidate all
assets and shut down the business. The laser tag equipment owned by the company would be
sold off to aspiring startups in nearby developing countries or just people who are willing to
own their own set of laser tag equipment. The rest of the inventory such as foosball, billiards,
etc. could be sold online for a reasonable price. Following this, the tenure at The Spring
Shopping Mall will come to a close.
However, if the business is performing well but not generating enough profit, as expected, a
merger and acquisition could be considered. This would be achieved by selling the company
shares to one of the laser tag businesses in Kuala Lumpur such as Laser Battle as they have
branches all over Peninsular Malaysia and they could be inclined to open their first branch in
East Malaysia. This would prove to be mutually beneficial as the only thing to focus on would
be the transfer of ownership rather than the liquidation of assets and losses incurred henceforth.
The business could be sold off completely or a portion of the shares can be retained. The
incentive for Laser Battle is that they will get a ready-made arena and only the brand change
and fewer modifications will be needed.
15.0 Recommendations
After assessing all the aspects of the business, we have realized we can make few amendments
that can smoothen the business venture. Few recommendations are stated below:
• Marketing cost was estimated low, because the marketing was not done
intensively. However, increasing the marketing cost can increase a huge number
of customer base. That can significantly increase the revenue generated per year.
• The initial cost of the laser tag game was kept very low, compared to the prices
charged in the Laser Tag business in West Malaysia. We can increase the prices
of the ticket to 25 RM once we have a good amount of customer base. That can
highly increase the profits of the company as the company mostly relies on the
laser tag.
• Furthermore, we can make ties with the MBO cinemas and promote our product
as well as we can promote there in return. We can occasionally use the theme
of newly released movies on MBO cinemas. In return the MBO cinemas can
show few ads before the start of the movies. We can also install few advertising
banners stands inside the MBO area.
• We can take the business further by arranging inter-college championship,
where the funding will be provided by us. This will motivate the students to get
more competitive and thus creating a new customer base of permanent
members.
• When we start to see games becoming houseful, then we can try to expand our
business by recruiting more staffs to handle operations for longer duration.
Moreover, we can expand the game limit by purchasing new equipment. This
way we will be able to host more players.
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• If the snack and drinks demand increases, we can increase the volume and
variety of the snack and drinks. We can arrange more suitable kind of food and
beverages to replenish the players in house.
16.0 Conclusion
The Amusement Cave promises to have a huge impact on the gaming industry in Kuching. In
this group assignment, a thorough study on the feasibility of our business was done. Beginning
with the construction of a business model and realizing the target market and market shares
along with the missions and objectives of the business. The related legal requirements to setup
the business were accounted for and the registration procedures were evaluated.
Marketing for the business was done by utilizing proper marketing channels and using an
effective entry strategy which makes use of the business uniqueness and its features to attract
customers and thus result in more revenue generation. Competitive analysis was done in the
form of SWOT and Porters Five Forces to determine the key aspects and then prices were set
accordingly to make the business flourish in the market.
The operations of the business were managed by use of flowcharts for operating procedures
and inventory management along with the handling of other activities. The location and layout
of the business was evaluated, equipped and staffed accordingly to allow smooth running of
the business. Ensuring the quality control and sustainability was also crucial for the business.
Lastly, all the business costs such as marketing expenses, production expenses, purchasing
cost, personal expenses and financial expenses were calculated. Then, the break-even analysis
was carried out to figure out the number of tickets or goods sale to reach a point from where
the sales are going to start making a profit. Afterwards, all the sales projection was carried out
to forecast the profit at the end of each year for three years. In addition to that, financial
statements were made for all the costs assumed in each part. The financial statements showed
the tracking of all the assets and liabilities of the business in the form of a balance sheet. The
Income and Cash Flow statements for the next 3 years along with the balance sheets were
recorded along with the balance sheet at the end of each year. The financial statements balanced
and hence showed that all the costs were accounted for. Later, to check the feasibility of the
business the relevant financial ratios were calculated using capital investment decision tools.
These ratios tell us that our business is likely to succeed in the market, given that all the other
aspects such as marketing and operations of the business venture are handled suitably. Overall,
this project deepens our understanding of the management principles that go behind starting
and running a business and broadens our perspective and skills for future ventures.
MME40001
GROUP #13
References
1) LASERWAR c. 2019, Optima Equipment Bundle, LASERWAR, viewed 1 July 2019,

<https://www.laserwar.com/equipments/game-sets/indoor-laser-tag/optima-equipment-
bundle>.
2) The Spring c. 2019, Leasing, The Spring, viewed 1 July 2019,
<https://www.thespring.com.my/kchleasing>.
3) Flexxo, Product Catalogue 2018-2020, Flexxo, viewed 22 July 2019,
<http://flexxo.com.my/public/attachment/catalog/catalog.pdf>.
4) Davis, M 2011, The Guardian, Melissa Davis, viewed 17 July 2019,
<https://www.theguardian.com/sustainable-business/consumer-behaviour-companies-
sustainable-living>.
5) Why should I segregate my waste properly 2016, Environmental Monitoring Solutions,
viewed 17 July 2019, <http://www.em-solutions.co.uk/blog/why-should-i-segregate-my-
waste-properly>.
6) Products and Services 2019?, Bplans, viewed 9 July 2019,
<https://www.bplans.com/laser_tag_gaming_center_business_plan/products_and_service
s_fc.php>.
7) Nestle c. 2019, Ice Cream, Nestle, viewed 15 July 2019,
<https://www.nestle.com.my/brands/ice_cream>.
8) Maybank c. 2018, Fund for Small & Medium Sized Industries 2 (FSMI 2), Maybank,
viewed 22 July 2019,
<https://www.maybank2u.com.my/mbb_info/m2u/public/personalDetail04.do?channelId
=BFIN-Financing&cntTypeId=0&cntKey=BFIN05.01&programId=BFIN05-
GovtAidedLoans&chCatId=/mbb/Business/BFIN-Financing>.
9) Zone Laser Tag c. 2018, Maintenance & Repair, Laser Tag, viewed 15 July 2019,
<https://www.lasertag.com/rugged-and-durable/maintenance-repair.html>.
10) Galactic Laser c. 2019, Services, Galactic Laser, viewed 15 July 2019,
<http://galacticlaser.com/v2/#services>.
11) CGMA 2013, Porter’s Five Forces of Competitive Position Analysis, viewed 9 July 2019,
<https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html>.
12) Shewan, D 2017, How to Do a SWOT Analysis for Your Small Business, Word Stream,
viewed 9 July 2019, <https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis>.
13) Laser Battle c. 2017, Arena Equipment, Laser Battle, viewed 15 July 2019,
<http://www.laserbattle.com.my/arena-equipment/>.
14) Esri c. 2019, About ArcGIS, Esri, viewed 15 July 2019, <https://www.esri.com/en-
us/arcgis/about-arcgis/overview>.
MME40001
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Meeting Minutes
Date: 28 June 2019
MME40001 Time: 01:30 pm – 02:30 pm (1 hour)
ENGINEERING Location: Seating Area (Outside B004)
MANAGEMENT Meeting # 1
Recorded by: Mohammad Ahsan Asad Iqbal
2
__________________________________________________________________________________
Attendees:
 Mohammad Ahsan Asad Iqbal – 100075231
 Mirza Tauheed Shah Baig – 100074555
 MD Al Fayshal Bin Shiraj – 100074746
 Talha Asad Iqbal – 100085379
 Aqib Mushtaq – 4331982
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  Introductions amongst members

 Nominate five potential products to be used for the business plan 
Try to finalize one product
DISCUSSION  Brief talk regarding potential products
 Narrowing options to five products
 Discussing the viability of each product in Kuching
CONCLUSION  Distribution of tasks amongst members
 Selection of writing style for the report
 Finalizing the product for the business plan
TASKS TO BE DONE DUE DATE PERSON IN- SIGNATURE

CHARGE
i. Completion of individual 28/06/2019
group profiles
ii. Writing about the five
potential products (one
product per person)
iii. Creating a rough draft for Everyone
the finalized product
i, ii, iii and Designing a template for 28/06/2019 Ahsan

the meeting minutes
__________________________________________________________________________________
MME40001
GROUP #13
Date: 30 June 2019

ENGINEERING Location: Leisure Room
2
__________________________________________________________________________________
Attendees:
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  Detailed analyzation of the chosen product
DISCUSSION  What equipment will be required?

 What will be the costs involved in the setup and operation?
 How many employees will be needed and their wages?
CONCLUSION  Developed a clear understanding about the chosen product

CHARGE
Writing about the chosen service and 31/07/2019 Fayshal
business model
Compiling the work 31/07/2019 Aqib
Write about the customer types, 31/07/2019 Tauheed

location, target industry, mission and
objectives for the chosen service.
Printing and Submitting the Group 01/07/2019 Ahsan
Task
__________________________________________________________________________________
MME40001
GROUP #13
Date: 5 July 2019

MME40001 Time: 01:30 pm – 02:10 pm (40 minutes)
2
__________________________________________________________________________________
Attendees:
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  What is to be done in Group Task 2
DISCUSSION  Reviewing the requirements for Group Task 2

 Discussing what can be done for each part
CONCLUSION  Even distribution of tasks amongst members

CHARGE
Business Plan Template 06/07/2019 Fayshal
Legal Requirements 06/07/2019 Aqib
Business Name and How it can be 06/07/2019 Tauheed

registered in Malaysia
Product uniqueness and intellectual 06/07/2019 Talha

property
Entry Strategy 06/07/2019 Ahsan
__________________________________________________________________________________
MME40001
GROUP #13
Date: 8 July 2019

ENGINEERING Location: Library
2
__________________________________________________________________________________
Attendees:
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  Further splitting of parts in Group Task 2
DISCUSSION  Sub-part selection by members

 Discussing what can be done for each part
CONCLUSION  Even distribution of remaining parts amongst the members

CHARGE
Product identification and similar 09/07/2019 Ahsan
product within the market
SWOT analysis, Porter’s Five Forces 09/07/2019 Tauheed

and compilation of the group task
Customer identification, market size, 09/07/2019 Fayshal

market structure, market share
Price ranges and meeting minutes 09/07/2019 Talha
Marketing channels, customer reach, 09/07/2019 Aqib

promotion strategy and group task
submission responsibility
__________________________________________________________________________________
MME40001
GROUP #13
Date: 12 July 2019

ENGINEERING Location: Library
2
__________________________________________________________________________________
Attendees:
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  What is to be done in Group Task 3
DISCUSSION  Reviewing the requirements for Group Task 3

 General discussion about the overall tasks
CONCLUSION  Even distribution of tasks according to the marking rubric

CHARGE
Inventory Required & Role of Quality 15/07/2019 Fayshal
Control
Production Process and Required 15/07/2019 Aqib

Equipment and Facilities
Characteristics of Location & The 15/07/2019 Tauheed

Layout
Sustainability Issues and 15/07/2019 Talha
Considerations
House of Quality (Quality Function 15/07/2019 Ahsan

Deployment)
__________________________________________________________________________________
MME40001
GROUP #13
Date: 15 July 2019

2
__________________________________________________________________________________
Attendees:
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  Progress review of Group Task 3
DISCUSSION  General discussion about the remaining work
CONCLUSION  Deadline set to complete remaining work

CHARGE
Actual Meeting Minutes 16/07/2019 Ahsan
Making the mind map 17/07/2019 Tauheed
Assisting in making the mind map 17/07/2019 Fayshal
Proofreading everyone’s tasks 17/07/2019 Talha
Compilation of the work 17/07/2019 Aqib
__________________________________________________________________________________
MME40001
GROUP #13
Date: 22 July 2019

MANAGEMENT 2 Meeting # 7
Recorded by: Mirza Tauheed Shah Baig
__________________________________________________________________________________
Attendees:
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  Discussion and Progress review of Group Task 4

 Assigning tasks and discussing the content of each task assigned
DISCUSSION
as well as how they integrate with each other
CONCLUSION  Tasks were distributed and a deadline was set to complete
remaining work
DUE PERSON IN-

TASKS TO BE DONE SIGNATURE
DATE CHARGE
Establishment costs, Running
Ahsan
Costs, Viability of the project, 25/07/2019
Conclusion and Recommendation
Financial Statement and
projections and Actual Meeting 25/07/2019 Tauheed
Minutes
Purchasing Costs, Personnel Costs,
Income Forecast and Compilation 25/07/2019 Fayshal
of the work
Financial and Administrative
Talha
expenses, Fixed and Variable costs, 25/07/2019
Required Sales
Marketing Expenses, Production Aqib
25/07/2019
Expenses and Sales Forecast
___________________________________________________________________________
MME40001
GROUP #13
Date: 26 July 2019

2
__________________________________________________________________________________
Attendees:
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  Preparing Final Report
DISCUSSION  Corrections needed in each Group Task
CONCLUSION  Distribution of responsibilities for correction of each task and

compilation

CHARGE
Group Task 2 and 3 Corrections, 28/07/2019 Fayshal
Conclusion and Recommendation for
the Final Report
Group Task 4 Corrections and 29/07/2019 Tauheed

Proofreading Final Report
Group Task 1 Corrections, Executive 28/07/2019 Talha
Summary and Exit Strategy
Generating the References list, 28/07/2019 Ahsan

Preparing the Final Meeting Minutes
and Compiling the Report
__________________________________________________________________________________
MME40001
GROUP #13
Date: 31 July 2019

ENGINEERING Location: Open Lab (A208)
2
__________________________________________________________________________________
Attendees:
Absentees:
Reason for absence:
__________________________________________________________________________________
Meeting
AGENDA  Preparing Final Presentation
DISCUSSION  What parts should be included in the Final Presentation

 Who will present which parts
CONCLUSION  Distribution of presentation parts amongst group members

CHARGE
Quality Control, Sustainability and 31/07/2019 Fayshal
Safety
Introduction, Business Model, 31/07/2019 Aqib

Marketing Channels and Target
Financial Analysis 31/07/2019 Tauheed
Competitive Analysis and Pricing 31/07/2019 Talha
House of Quality, Management Team, 31/07/2019 Ahsan

Location Strategy & Business Layout
__________________________________________________________________________________
MME40001

Swinburne University of Technology, Sarawak Campus: Business Plan Project

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Swinburne University

Business Plan Project

Tutorial Group #2 / Group #13

1.0 Business and Industry Background

1.1 Service Opportunity

1.2 Business Model

1.3 Customer Types

1.4 Target Industry

2.0 Missions & Objectives

• Provide a fun and intense experience for people of all ages

3.0 Introduction of the Service and Technology

3.1 Introduction to the Service

3.1 Business Uniqueness

3.1.2 Intellectual Property

3.1.3 Service Uniqueness

3.2 Entry Strategy

4.0 Business Legal Considerations

4.1 Private Limited Company

4.2 Occupational Health and Safety

4.3 Sales and Income Tax

4.5 Business Licensing

4.6 Company Name and Registration

1) “Shoot for fun”

5.0 Marketing Analysis

5.1 Target Markets

5.1.2 Secondary Target market: University Students Age Group (18-25)

5.1.3 Tertiary Target market: Young Adults Age Group (26-35)

5.2 Market Structure and Industry

5.2.1 Market Share

Figure 1: Market Share of the business

6.0 Marketing Strategy

6.1 Channels of Marketing

6.2 Promotion Strategy

6.3 Pricing Strategy

Table 1: Pricing strategy for the business

Type of activity Price per Description

7.0 Competitive Analysis

7.1 SWOT Analysis

Figure 2: SWOT Analysis

7.2 Porter’s Five Forces Analysis

Figure 3: Porter's Five Forces Analysis

Rivalry in the Industry - Low

8.0 Quality Control and Maintenance

8.1 Equipment Quality Control and Maintenance

8.2 Software Improvement and Maintenance

8.4 Feedback Platform

8.5 Damage Control

Figure 4: House of Quality

9.0 Financial Analysis

9.1 Establishment Cost

ITEM COST (RM)

9.2 Purchasing Cost

Items Quantity Unit price Price Total price

Table 4: Estimated inventory purchasing cost

Items Quantity Unit Total price Total price Total price

9.3 Production Costs

Repairs and Total price Total price Total price

9.4 Running Cost

ANNUAL COST ANNUAL COST ANNUAL COST

Rental Charges 300,000.00 300,000.00 300,000.00

Marketing 7,036.00 7,336.00 7,636.00

Coach 22,680.00 23,400.00 24,000.00

Gear Staff 22,680.00 23,400.00 24,000.00