Noblesse World Corporation

UNIVERSITI MALAYSIA SABAH

UW 00302 ASAS PEMBUDAYAAN KEUSAHAWANAN

GROUP 7 (SECTION 12)

LECTURER: EN.RIDZWAN

NOBLESSE WORLD CORPORATION BUSINESS PLAN

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Table of Contents
No 1 2 3 4 5 6 7 8 9 10 11 Title Executive Summary Introduction Company Background Management Plan Product / Service Market and Competitor Analysis Strategy and Implementation Production/Operation Planning Risk Management and Exit Strategy Financial Plan Appendix Page 3 4 5 7 8 10 12 17 19 20 23

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1.1 Executive Summary Noblesse World Corporation always ensure that S.E.R (Satisfy, Enjoy and Relax) tagline of the company always instill in the customer services and also among the company members. At the same time, loyalty of the customer also increased company profits. Besides, general manager of company also wants all of the staff relax during completing their responsibility to avoid the staff stress during completing their task responsibility. In a nutshell, Noblesse World Corporation not only keeping good relationship with customer but also strengthens the relationship among Noblesse World Corporation members. Noblesse World Corporation is the company that provide a haunted house service and selling souvenir. The special of the Noblesse World Corporation is the innovation service that created by the department of the company. Moreover the price of the Haunted House that had been used is the penetration of pricing where all of the classes of consumer can bought the product. Furthermore, Noblesse World Corporation also has other product besides Haunted house dervice with affordable price to everyone. The most important is the shares of shareholders will growth 28.5%, from RM 50 per share become RM 70 per share. Beside increased the profit of the company, the profit of the shareholders also concerned by the Noblesse World Corporation. Increasing of the shareholders share will attract other investor to invest in Noblesse World Corporation. With this opportunity, Noblesse Company can expand the market into higher level.

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1.2 Introduction Noblesse World Corporation involve in Fundamental of Entrepreneurial

Acculturation project that held in 2 May 2012 until 4 May 2012 that organized by University Malaysia Sabah (UMS). With participating in this project, Noblesse World Corporation can expand the company through this kind of events. The mission in this project is to fulfilled the satisfaction of the customer in UMS while get more customer in the market. To accomplish these goals, Noblesse World Corporation makes an analysis to see the opportunity that company have during this expo. The survey includes segmentation of the market based on 3 main factors: demographic, psychographic and geographic. Noblesse World Corporation also give souvenir to the customer. Since the major of the customer in UMS was student, Noblesse World Corporation put a reasonable price for the entire service. This will attract more students to get the company service. Besides that, Noblesse World Corporation also give a special gifts to whom that collects 5 type of different key chain (the souvenir). The promotion will only be given during the expo that held around PPIB tutorials room in UMS.

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2.1 Company Background

NAME OF COMPANY TYPES OF COMPANY TYPES OF COMPANY ORGANIZATION LOCATION REGISTRATION DATE DATE START OPERATION STARTED CAPITAL MAIN PRODUCT NOBLESSE WORLD CORPORATION PARTNERSHIP

University Malaysia Sabah, Kota Kinabalu

2012 2 MAY 2012 RM 500.00 HAUNTED HOUSE AND SOUVENIR

Source: Noblesse World Corporation

Noblesse World Corporation is a partnership organization that has 13 shareholders (refer to appendix 1). In order to avoid conflict among the members, partnership agreement was prepared as for references. In this agreement it stated that all shareholders responsible on company losses and the profits of company will be divided fairly based on amount of shares agreement that already agreed by all shareholders. Appendix 2 shows the business card of Noblesse World Corporation.

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Mission Fulfilled customer satisfaction with the quality service. Maximized the profits and minimizing the cost of product. Instill the sense of entrepreneurial among the company members beside increased the quality of the business. Operation of the company based on the 4P concept that consist of price, product, places and promotion. Vision Realize the company tagline-S.E.R (satisfy, enjoy and relax) with customer and also with the members of the company. Expand the company to higher levels. Promote a service that has a memorable scene.

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3.1 Management Plan Management Team The Noblesse management team consists of General Manager, Human Resource Manager, Production Manager, Marketing Manager, Financial Manager and Information Technology Manager (appendix 3). To be competitive in todays economy, Noblesse World Corporation need the best people to create ideas and execute them for the organization. Based on the mission and vision of the company, the right employees are the most important resources to accomplish the mission. To find qualified job applicants, Noblesse World Corporation use recruiting to developing a pool of qualified job applicants. After the recruiting process, company will collect the applicants resume to comparing the qualified job applicants based on the suitable position for they qualification to be selected work in Noblesse World Corporation. All the manager resume were attached in the appendix (refer to appendix 4). To realize the company objective, the general manager creating a positive organizational culture through words and actions and monitoring the companys business environments were stable.

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4.1 Product/ process/ service

4.1.1 The uniqueness of product The business main activity is ghost house themed house service. The example of ghost is included was Ju On, Reaper, Pochong and Hantu Raya. The ghost provided a reasonable situation. For example,the ghost will have a scary face to instill fear to a customer. Other than that, the ghost are also always change from time to time to create a different persona. For example, the business has Ju On waiting at the front door. Later on that place will be change with another ghost so that customer will feel fear because they cannot guess when the ghost will come out. The products which is the souvenir are also simple because customer will get a key chain that will have a light feature. The companies also treat more friendly based on company tagline SER (Satisfy, Enjoy and Relax) for keep good relationship between company and the customers. Besides that, the companies also ensure the hygienic of the staff by wearing clean and neat clothing to ensure that customers will be more confident to buy the product.

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4.1.2 Competitive advantages Each of the business will have competition. With the competition the market will be more careful and more creative to produce a product. Therefore, this opportunity should be taken to compete on a level with other people. With this competition, the company will provide or produce a better product to attract customers. In a market, consumer is the controller where companies will produced the product that demanding from customers. Important to company to know what customers like and dislike because if the company provides products that are not preferred by the customer, the customer will not buy the product. Companies also need to improve the quality of the product in order to get more customers. The more important is how company ensures the satisfaction of customers was fulfilled.

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5.1 Market and Competitor Analysis 5.1.1 SWOT analysis Noblesse World Corporation also concerned on SWOT analysis as an analysis of certain factors in implementing the analysis of products from within and outside views. There are four elements in SWOT analysis, strength, weaknesses, opportunity and threats. Appendix 5 shows the SWOT analysis of Noblesse World Corporation. 5.1.2 Competitor analysis Besides the SWOT analysis, Noblesse World Corporation also analysis the competitive analysis to help assess the competitive environment. Therefore, identifying competitors weaknesses and strengths, particularly in terms of price is very important to look at the effectiveness of the product on the

market.(Appendix 6) Overview of environmental product Overall, the competition is very low. Most companies selling different products. The strength of the competitive products 1) Marketing strategies such as promotional gifts will be given to customers who purchased souvenir above RM 10 2) Noblesse Haunted house use own concepts with the latest innovations.

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3) Noblesse Haunted House only have 1 competitors. 4) All the Noblesse World Corporation products price affordable for all types of customers such as students.

Competitors

- Competitors are companies that sell products similar to products like the company's products sell such as drinks and snacks. For example, Little A Corporation selling drinks and ice cream products as primary products.

Barriers to entry in the market Price competition in the ever-changing market. Innovation has always been chipping renewal from time to time of all operator staffs. Always competing with companies with advanced technology.

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6.1 Strategy and Implementation To success in this business, Noblesse World Corporation take maximized the profit and minimized the cost through marketing, sales and sales forecast strategy. Appendix 9 shows that the segmentation market of the Noblesse World Corporation. 6.2 Marketing Strategy 6.2.1 Pricing Strategy Penetration Pricing Marketing department will penetrate the price with setting a low initial price on the new products to appeal immediately to the mass market such as the Noblesse Haunted House souvenir (Halloween Key-Chain), one of the new products. The price is set for RM 2.00 per key-chain. This price was the medium prices where all the customers can buy the product. Other than that, this strategy can compete with other products by other competitor. 6.2.2 Promotion Strategy Advertising

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Since the target market is students, staffs and visitors coming from outside, the pamphlet will be distributed before and during the last expo. This pamphlet is one of the targeted tools to convey information about products to customers. More pamphlets were distributed, the more customers that can be attracted. This strategy is an efficient means for reaching large number of customers. Direct Selling

Direct selling is the two way flow of communication between a buyer and seller. This strategy is used to influence the customers purchase decision. This strategy is believed to be able to get quick response from customers because of the selecting team using two way flow of communication with the customers. Direct Marketing

This strategy covers many activities such as direct mail and telemarketing which create and exploit direct relationships with customers; it also includes some forms of advertising, sales promotion and personal selling.

6.2.3 Distribution Patterns Direct Channel Direct channel is used because Noblesse World products are sold directly to customers without using intermediaries. It is cheaper for the company to hold the products in own retail store as there are no intermediaries.
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Noblesse World Corporation

Customer

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Source: Noblesse World Corporation

6.3 Sales Strategies I. Direct Selling Direct selling also known as door-to-door retailing which involving direct sales of good and services to consumers through personal interactions and demonstrations in their home or office. Noblesse World Corporation uses this kind of strategy to sale the product. Noblesse World Corporation use direct selling when sale product in Hostel such as Hostel AB, CD, E, and Indah Permai. Besides, Noblesse World Corporation using direct selling to reach consumer who prefer one-to-one customer service and social shopping experience rather than big-store shopping or online. II. Telemarketing Noblesse World Corporation using the telephone to interact with consumer and sell directly to consumers. This is because telemarketings are often viewed as a more efficient means of targeting consumers. III. Advertising Advertising is any paid form of non personal communication about an organization, good, service, or idea by an identified sponsor. Noblesse World Corporation use advertising to make sure consumer know place and product been made by Noblesse World Corporation. Besides, advertising help Noblesse World Corporation announce about the product.

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Noblesse World Corporation using advertising product at lecture hall, hostel, and technology (social networks, telephone and ext). However, advertising do not have an immediate feedback loop as does personal selling.

6.4 Sales Forecast Noblesse World Corporation use sales forecast in order to estimate of the company revenue for a specified future period. This is because forecasts play major roles in new-product decisions, production scheduling, financial planning, inventory planning, procurement, distribution and human resources. Sales forecast are divided into two: (a) (b) Qualitative forecasting Quantitative forecasting

1. Qualitative forecasting a) Jury of executive opinion This techniques are combines and average the outlook of CEO such areas General Manager of Noblesse World Corporation will bring the following marketing, finance, production and purchasing. capabilities to the process: experience and knowledge about the situations that influence sales, open-minded attitudes toward the future, and awareness of the bases for their judgments. Moreover, this faster and inexpensive method generates good forecasts for sales and new-product development of Noblesse World Corporation. b) Sales Force Composite
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This technique will develops forecasts based on the belief that Noblesse It is related to one, whom has knowledge with company product, customer,

World Corporation member closest to the marketplace. and competitive knowledge also offer the best insights concerning short-term future sales. Sales forces composite are typically works from the bottom up.

2. Quantitative Forecasting a) Test markets Frequently helps Noblesse World Corporation asses consumer response to newproduct that are selling by Noblesse World Corporation. Noblesse World Corporation will begin by establishing one or more test markets to gauge consumer response to a new product under the actual market place condition. This will help Noblesse World Corporation permit experimenters to evaluate the effect of different prices, alternative promotional strategy and other marketing mix variations by comparing results among different test markets. b) Trend analysis It is help Noblesse World Corporation develops forecast for future sales by analyzing the historical relationship between sales and time. Noblesse World Corporation assumes that the collective causes of the post sales will continue to exert similar influences in the future. When historical data available, planners can quickly and inexpensively complete trend analysis.
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6.5 Marketing Budget The following show the cost used by marketing department of Noblesse World Corporation in ITEM Printing advertisement Paper use in advertising Total
Source: Noblesse World Corporation

marketing budget. COST RM 20 RM 30 RM 50

7.1 Production/Operation Planning 7.1.1 Production methods There are four types of production methods which are used by various types of company based on what kind of product they are producing. These four production methods are job method, batch method, flow method and group methods. As for Noblesse World Corporation, company chooses to use batch method as company process of production and material for it is quite the same. 7.1.2 Places that are targeted to market The company strategic places to distribute products had shown as below: University Malaysia Sabah 1. School Of Business and Economics (SBE) Students and lectures (targeted buyers) 2. Lecture Hall - Students
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3. Hostel/ dorm - Students 4. Staff in UMS Location is the most important components when start the business. The targeted buyers are students, lecturers and staffs in UMS. The targeted places to sell souvenir and promote our haunted house are students hostel such as hostel AB, hostel CD, hostel E hostel Indah Permai and also hostel King Fisher. Hostel is the most targeted places because they are the places where students will be possible are aside from lecture hall and library. Within that, company also can get more buyers and gain more profit. Company also attracts more customers to buy company products and at the same time, company also promoting products. As a result, company can gain profit quickly and promote products more efficiently. Appendix 10 shows the materials that needed to produce company product. 7.2 Suppliers There are several suppliers which supply the resources to conduct company operation. The main supplier for haunted house is from Kota Kinabalu that relatives of one of company shareholders. While, other materials supply by Jimat mini market. Therefore, company has the advantage to cut down the cost in terms of buying product raw material especially crackers. Furthermore, company can get the lowest price of all those raw materials of the product. 7.3 Operation

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After getting company resources from supplier, staffs of the company start working on producing products. As all of company workers have all the skills required, thus, all company staffs have own their responsibility in their department that lead by the operation manager.

8.1 Risk management and exit strategy Risk management The risks are getting losses suffered as a product is not sold out. Example of the

situation where our souvenir cannot be sold out because there is less customer visiting our haunted house and customers more interested inthe food compare to souvenir. In addition, provided the product is not necessarily loved by everybody. Besides that, weather also one of the risks that company must consider. This because of the location of the haunted house is at PPIB building which is quite far from the bus stand; customers preferred a nice weather to visit the haunted house. All of this will affect the sales of company and make the profit in business will decrease. To overcome this problem, company decide to sell the souvenir for short period where only sell to customer start 9am till 5pm. This solution can solve the problem and ensure that company fulfilled the consumers satisfaction. Otherwise, company will

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reduce the production of souvenir and focused more on haunted house service. With this solution, it can reduce the losses of company.

9.1 Financial Plan SOURCES OF DEFRAYAL The sources of company defrayal is from the company members which is stated in company organization, there is 10 members in the company and each member will invest minimum of RM50.00. The decision of this amount of investment is made by agreement of all members of the company. TABLE OF FINANCIAL COST ITEMS GHOST PROPS COST COST PRICE : RM 50 NUMBER PURCHASE : 7 Units TOTAL : RM 350 HAUNTED HOUSE PROPS COST PRICE : RM 100 TOTAL : RM 100

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TOTAL PURCHASES

RM450.00

PRO-FORMA CASH FLOW STATEMENT Cash flow for end of week Cash flow from operation Activity Cash receive from customer Cash paid to supplier RM 750/days 450 (only for once) Cash paid to operation Net cash flow from operation activity (135.00) 408.00 RM

Cash flow from financial activity Capital Net cash flow from financial activity Increase of Cash flow

RM 500.00

RM

500.00 908.00

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PRO- FORMA BALANCE SHEET Non-fixed assets Cash Inventory Total Assets Owner Equity Capital Net profit Total Owner Equity 500 950 1450 RM 1415 35 1450 RM

PRO-FORMA INCOME STATEMENT RM SALES (-) COST OF GOOD SOLD (+)PURCHASES (-) ENDING INVENTORY COST OF GOOD SOLD GROSS PROFIT (-) EXPENSES TRANSPORTATION EXPENSES PACKAGING EXPENSES PREMISE EXPENSES OTHER EXPENSES TOTAL EXPENSES NET PROFIT 50 45 30 10 (135) 250
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RM

RM 800

450 (35) (415) 385