Environmental Friendly Enterprise

8/6/2019 Environmental Friendly Enterprise

1/50

Subject Name : TECHNOPRENEURSHIPSubject Code : WBB10102Lecturer : Mr. Adlin

CONFIDENTIAL

AUTOMATED WASTEMANAGEMENT SYSTEM

Date of Submission: April 20, 2011

Prepared by:

Team Leader MOHD RASHDAN BIN UJANG 50231210486 BAMT

Team Member No.1 MOHD SALLEHUDDIN BIN JASMIN 50231210165 BAMT

Team Member No.2 AMMIRUL AKHMAL ASYRAF BIN AMAN 50231210392 BAMT

Team Member No.3 MOHD ANNAZIF BIN MOHD 50231210233 BAMT

Team Member No.4 MOHD HANIF BIN AZHARI 50231210009 BAMT

Table of Content

Environmental Friendly Enterprise


2/50


CONFIDENTIAL

Section 1.0 EXECUTIVE SUMMARY 1

Section 2.0 BUSINESS DESCRIPTION

2.1 Company Background

2.2 Industry Background

2.3 Business Goals and Potential

2.4 Uniqueness of Product / Service / Technology

2.5 Long Term Goals

2

2

3

4

5

Section 3.0 INDUSTRY ANALYSIS

3.1 Target Market

3.2 Market Size and Trends3.3 Competition / Competitors Information

3.4 Estimated Market Share

3.5 Strength and Weaknesses or SWOT Analysis

6

77

8

8

Section 4.0 MARKETING PLAN.

4.1 Market Strategy (Sales and Distribution)

4.2 Pricing

4.3 Advertising and Promotions

4.4 Technology and Product Development Strategies

4.5 Marketing Budget and Financial Strategies

10

11

11

12

13

Section 5.0 OPERATIONS AND PRODUCTION PLAN

5.1 Identify Location

5.2 Transformation Process

5.3 Process Planning

5.4 Material Requirement Planning

5.5 Production and Operation Layout

5.6 Production and Operation Budget

14

15

16

17

18

19

Section 6.0 ORGANIZATIONAL PLAN

6.1 Form of Ownership

6.2 Vision, Mission and Objectives

6.3 Management Team

6.4 Organizational Chart

6.5 Human Resource Plan

20

20

21

22

23

Table of Content (contd)


3/50


CONFIDENTIAL

Section 7.0 FINANCIAL PLAN

7.1 Revenue Model

7.2 Income Statement / Profit and Loss Statement7.3 Balance Sheet

7.4 Cash Flow Statement

7.5 Break-Even Analysis

7.6 Financial Ratios.

7.7 Costs Controls

7.8 Budgeting plans

25

2526

27

28

29

30

30

Section 8.0 MILESTONE SCHEDULE.

8.1 Timing and Objectives

8.2 Deadlines and Milestones

31

32

Section 9.0 RISK ANALYSIS

9.1 Potential Problems

9.2 Obstacles and Risks

33

34

Section 10.0 CONCLUSION 36

APPENDICES / REFERENCES / BIBLIOGRAPHY / RESUMES


4/50


CONFIDENTIAL

1.0 EXECUTIVE SUMMARY

The name of this company, Environmental Friendly Enterprise resembles a

clean and pollution free environment that is comfortable for the citizen to live.

Environmental Friendly provided a method to overcome the waste disposal problem

in order to keep the surroundings comfortable for a community in a specific place.

Seri Kembangan has been chosen for the main office of the business because of the

easy-to-spot location. The customers do not have to waste most of their time finding

the main office to buy a service provided by Environmental Friendly Enterprise. The

construction activity in this area is active. An assumption has been made that the

business will be a success as modern shopping malls; office buildings around this

area need an integrated waste management system to reduce labors.

The system that has been invented by Environmental Friendly Enterprise by

the Research and Development team is Automated Waste Management System

(AWMS). This systems purpose is to collect all the waste around the building and

place it into one sealed waste container. The waste container needs to be sealed to

prevent rodent infestation inside or the surrounding of the container. The purpose of

this business plan is to acquire funding to start up this business. A sum of RM 236

700 is needed to start the business. This money will be spent more to renting a

building, office supplies, raw materials and the workers salaries.

The projected sales for Environmental Friendly Enterprise are estimated

around RM2 million per year. This means that the company will make a lot of income

by distributing a system per month. The key to success in this business is based on

the integrated design and less competitors in the state of Selangor. The companies

that are currently providing their systems are Nexaldes Sdn. Bhd and ST

Environmental Technologies and Service. The competition on the environmental

based industry is not as strong as other industries. The profit margin that can be

obtained per year is 70 percent. This means that the company obtained a lot of profit

as compared to other companies. The company is able to pay its debt in 5 years.

1


5/50


CONFIDENTIAL

2.0 BUSINESS DESCRIPTION

2.1 Company Background

Automated Waste Management System (AWMS) is brought by EF

Enterprise (Environmental Friendly), one of the few companies in the world

that provides design, engineering and supply of Automated Waste

Management Systems (AWMS). Founded in Malaysia in January 2011, we

started to market Central Vacuum Systems under the brand AWMS. and we

have built up an impressive amount of experience in improving indoor air-

quality and producing the highest standards of building hygiene. Today, with a

growing international portfolio, AWMS has been often referred to as a world

leader in central vacuum technology.

2.2 Industry Background

Invented some 40 years ago, AWMS did not make an impact in Asian

cities until the last 10 years when new developments and redevelopments

took place in cities like Dubai, Abu Dhabi, Singapore and Seoul. In most

European cities this technology has been made a standard infrastructure by

local governments and city planners.

As population densities increase worldwide, Government Planners,

Developers, Architects and Engineers face huge challenges in providing the

necessary infrastructure requirements created by the growth. Whilst

tremendous advances have been made in water, sewerage and

communication facilities, solid waste or garbage as it is more commonly

called still gets handled in the traditional bucket-collector system. This

2


6/50


CONFIDENTIAL

traditional method involves a lot of vehicles, labour and cost and is smelly,

unsightly, unhealthy, inconvenient and costly.

2.3 Business Goals and Potential

Increase revenue by 15% by 2016

Increase customer satisfaction index (CSI) by 5 pts. by 2010

0% debt by 2016

Goals Tactical action Responsible Due date status

Increase revenue

by 15% by 2016

Monitoring and make

sure all marketing and

financial plan according

to the plan

Mohd Hanif May 2016

Increase

customer

satisfaction by 5

pts by 2013

Measure customer

satisfaction

Survey

customer

Understand

expectation

Asses the

competition

Mohd

Rashdan

May 2013

I0% debt by 2016 Monitoring company

financial and take

correct action to

achieve target

Mohd Annazif June 2016

3


7/50


CONFIDENTIAL

2.4 Uniqueness of Product / Service / Technology

Simply, the Automated Waste Management System is a pneumatic

waste-conveying system that transports municipal or household waste at

high speeds via reticulated pipes to a Central Waste Handling Facility.Its

quick, clean and convenient.

2.4.1 How does it work ?

Also known by various terms such as Vacuum Waste Collection

System, Central Waste Collection System and Pneumatic Refuse

Collection System, the Automated Waste Management System stores

waste in sealed containers before it is carted away for disposal to a

landfill. AWMS transports waste at high speeds and to distances of more

than 2km away, making it possible for each AWMS facility to handle

garbage for an entire district of up to 10,000 people.

2.4.2 How does AWMS serve?

Automated Waste Management System is meticulously-designed to

ensure complete satisfaction. We work closely with each client to provide

specifically-tailored solutions. From planning and design to installation and

after-sales support, we are totally committed to your needs. Our two

decades of integrity and professionalism is your assurance of dependable

service.

4


8/50


CONFIDENTIAL

2.4.3 More AWMS Benefits!

Your whole development solid waste collection needs are

solved easily, effectively and perpetually.

Waste from all floors and all buildings, as well as from outdoor

bins are automatically collected and transported to a Central

Waste Handling Facility; saving space in your development

and improving hygiene.

Waste is removed at frequent intervals, hygienically, regularly

and invisibly. You decide the frequency and volume, AWMS

delivers

There will be lower operation and maintenance costs for your

development, plus a higher level of hygiene year after year.

AMWS Quality Standard The Competition The Difference

Frequency inverter motor

Soft starter and pneumatic

damper control Better energy saving

5


9/50


CONFIDENTIAL

Heavy duty, high impactresistance and lowmaintenance dischargevalve door plate in 12mmstainless steel.

8mm mild steelStainless steel has betterdurability with wet waste

Stainless steel impeller Mild steel impellerStainless steel offerslonger durability withwaste

HMI color graphic panel Operator panel

Easy and convenientoperator observation,

parameter change withpassword protection

2.5 Long Term Goals

Our long-term goal is to provide AWMS in every city in Malaysia in

order to keep the environment clean, comfortable and healthy. And increasing

company profit 0.5% by 2016

3.0 INDUSTRY ANALYSIS

3.1 Target Market

Research has been conducted by our GM, Mr. Ammirul in the state of

Selangor. Most of the researches are based on construction areas, shopping

malls, skyscrapers, office building, and tourist attractions such as Sunway

Lagoon and many more. It is stated that most of these areas or places are

having a waste disposal problem. The janitors must travel far in order todispose the waste. The stench of the waste has made the visitors

uncomfortable as the waste removing procedure is done in daily basis. At the

construction site, most of the construction companies are not installing any

waste management system. A solution has been made to counter the

problem.

Environmental Friendly Enterprise will concentrate more to

construction site as the main priority in promoting our technology to other

construction company. Automated Waste Management System (AWMS)

6


10/50


CONFIDENTIAL

installation process would be easier than installing this at a building that is not

under construction.

Applying AWMS to shopping malls such as Mid Valley Megamall,

Sunway Pyramid and others will also counter the wastage disposal problems.

Most of shopping malls have wasted an enormous amount of money in order

to keep the malls clean and comfortable by hiring janitors to dispose of the

rubbish. By installing this device, this will eliminate the problem as it is lowmaintenance.

Target Market table

State Place ProblemsSelangor Mid Valley Megamall Waste ManagementProblemSunway Pyramid

Sunway Lagoon

One Utama

The curve

KL Tower

Petronas Twin Tower

Construction Site atPuchong

No waste managementSystem Installed

3.2 Market Size and Trends

The target unit of sales per year is 12 units per year and a unit per

month. Each unit will be set at a price of RM 150,000. The annual income for

Environmental Friendly Enterprise is RM1.581 million. the market size of

Environmental Friendly Enterprise will be focusing in Selangor areas and

equal to RM 1.581 million market share.

3.3 Competition / Competitors Information

Competitors Strength Weakness

7


11/50


CONFIDENTIAL

Nexaldes Sdn. Bhd Well known company inMalaysia. Most of theconstruction companywould hire them to do thepneumatic wastemanagement system.

Most of the current projectthat is handled now isoutside of Malaysia.Projects in Malaysia arelesser than outside ofMalaysia.

ST EnvironmentalTechnologies and ServicesLtd.

Have a lot of experienceworkers.

Too expensive.

Environmental FriendlyEnterprise

More advanced designamong the others.

Limited amount of workersavailable. The project islimited.

3.4 Estimated Market Share

Before The Entry Of Environmental Friendly Enterprise

Competitors Market Share Sales Per Year

Nexaldes Sdn Bhd 46% RM3,600,000

ST EnvironmentalTechnologies and ServiceLtd

54% RM4,200,000

Total 100% RM7,800,000

After The Entry Of Environmental Friendly Enterprise

Competitors Market Share Sales Per Year

Nexaldes Sdn Bhd 30% RM2,340,000

ST EnvironmentalTechnology and ServiceLtd

35.4% RM2,761,200

Environmental FriendlyEnterprise

24.6% RM1,920,000

Total 100% RM7,800,000

3.5 Strength and Weaknesses or SWOT Analysis

SWOT Analysis

8


12/50


CONFIDENTIAL

A research has been conducted by Mr. Sallehuddin in the state of

Selangor. Stated below are strength, weakness, opportunity and threats that

might affect the companys business.

Strength

The strength of this company is the latest design of the system and it

is low maintenance. This means that system last longer than any other

system provided by other companies. Low maintenance means that the user

does not need to waste a lot of money to maintain the system in a good

condition.

Weakness

Environmental Friendly is still new to the waste management industry.

This requires time for the company to be recognized by other company.

Opportunity

Most of the local construction companies in this area are not using the

waste management system. This will be our target to promote our technology

to them in order to collect all the waste inside the building without using any

human power.

Threat

Nexaldes Sdn. Bhd and ST Environmental Technologies and Services

are among the well-known companies in the waste management industries.

These will the companys greatest challenge. Project would be tougher to

gain as most of the construction companies would prefer the well-known

companies in Malaysia.

9


13/50


CONFIDENTIAL

4.0. MARKETING PLAN

4.1 Market Strategy (Sales and Distribution)Environmental Friendly Enterprise is located at Seri Kembangan,

Selangor. We decide to choose this area because this place is situated all

houses, apartment, condos, and other building like shopping complex. Also

this place is not crowded like Kuala Lumpur city and hard to find if our

company is situated in that city.

Therefore, our company, Environmental Friendly Enterprise was

arranging our step and strategy that can help on bring forward our business

that we want build. Between market strategy and step that we have taken is

like provide reasonable prices for services and products we produce. We also

satisfy our customer from design aspect and the uses material, to ensure that

the selection is done according to our own customers' satisfaction.

We also do some research and short analysis to provide product and

service that will offered. 4 Ps concept was take as consideration in make

market analysis. There was 5 fractions strategy that we will use; it is product,

10


14/50


CONFIDENTIAL

pricing, place and promotion. All elements of marketing that has been

identified are the important elements in marketing. Each element can be

developed through several research and development.

4.2 Pricing

EF. Enterprise also provide the price according to the marketing butwe can are very consider if the customer wants to reduce the service or

product price. The price is according to the package provided. The pricing

strategy we will use is cost based pricing that is:

Price = Total Cost Per Unit + Profit MarginOur prices are mostly according to the service we give to the

customer. If the cost per unit of a product is RM45, 000 our profit margin is76%.

For example:Price = Cost per unit + profit margin

= RM 45,000 + (76% x RM45,000)

= RM 45,000 + RM140, 000

= RM 185,000

4.3 Advertising and Promotions

11


15/50


CONFIDENTIAL

For advertising and promotion, we can see that internet is the easiest way

to promote our product. But we also advertise it at another method like

newspaper, transportation etc. We advertise our business at our website, our

transportation, at newspaper, and brochures:

Website : http://www.environment4us.com.my

Transportation:Environment Friendly logos stick on our transport and also

public transport.

Newspaper and brochures: We advertise our production quality and goodservicing.

4.4 Technology and Product Development Strategies

The R&D team will design according to the project size depend

on what building that we will install this system. This system will use

pneumatic tube to distribute the garbage to our waste capsule, which

centralized the waste before the waste collection truck collect that

waste and dispose it city dump. Automated Waste Collection System

perfectly provide the most impressive innovation for modern

developments.

4.4.1 Commercial Buildings

Whether they are sophisticated office towers or luxury condominiums,

high-rise buildings are cleaner and safer with Automated Waste

Collection System and its centralized ground-level collection station.

No more intrusive labor, no more unsightly bins, no more noisy and

smelly trucks serving multiple blocks and no more costly rubbish-

elevators. AWMS is quiet, clean and convenient.

12
http://www.environment4us.com.my/http://www.environment4us.com.my/


16/50


CONFIDENTIAL

4.4.2 Transports Terminal & Security Zones

By doing away with manual collection of waste, administrators

immediately eradicate major security problems.

No wandering personnel, no intrusive rubbish collection trucks, less

personnel, no unsightly and smelly bins to move around in the building

and better security without rubbish collection trucks entering the

terminal buildings. AWMS takes it all away quickly, quietly and

securely.

Airports all over the world are insisting on Automated Waste

Collection. AWMS provides tomorrows solution for todays security

needs.

4.4.3 High Rise Residential Developments

Developers, architects and planners of extensive mixed-development

projects need to look for an innovative and practical solution that will

add value and enhance the quality of life across the development.

AWMS will operate as a tailor-made solution for high-rise, low-rise and

recreational buildings, as well as outdoor areas such as parks, plazas

and pathways.

And also entire project will have a cohesive, comprehensive and cost-

effective solution with AWMS.

4.5 Marketing Budget and Financial Strategies

Marketing Budget 2012 2013 2014 2015 2016

Sales Commission 60.00 60.00 60.00 60.00 60.00

Entertainment Allowance 24.00 24.00 24.00 24.00 24.00

13


17/50


CONFIDENTIAL

Advertisement (TV, Radio, Internet, etc) 120.00 120.00 120.00 120.00 120.00

Advertising Fees (Ads Agency, PR, etc) 36.00 36.00 36.00 36.00 36.00

Promotions 30.00 30.00 30.00 30.00 30.00

Tele-Marketing 24.00 24.00 24.00 24.00 24.00

Brochures/Flyers/Banners/Posters/Business Cards 24.00 24.00 24.00 24.00 24.00

Printing and Stationeries 12.00 12.00 12.00 12.00 12.00

Travelling Expenses 36.00 36.00 36.00 36.00 36.00

TOTAL 366.00 366.00 366.00 366.00 366.00

The financial strategies which follows summarizes information regarding thefollowing items:

Important Assumptions. Key Financial Indicators. Break-Even Analysis. Projected Profit and Loss. Projected Cash Flow. Projected Balance Sheet. Business Ratios

5.0 OPERATIONS AND PRODUCTION PLAN

5.1 Identify Location

14

EVIRONMENTAL FRIENDLYENTERPRISE

No 36, Jalan SR 20,Taman Serdang Raya, Sec 9,

34400 Seri KembanganSelangor


18/50


CONFIDENTIAL

5.1.1 Distance from the source of raw materials

The factors considered as selecting the suitable location. The

locations we choose are easy to reach the raw materials. It is located not far

away from our company. All the equipment and tools were easily got because

the distances are so close.

5.1.2 Availability of manpower

Our location high capacity residential is considered as an advantage

for us to find our workers that would be our manpower. Located at the capital

of Malaysia, it provides more opportunity to get manpower.

5.1.5 Price of Premises

We have to spend medium amount in choosing premise. Our location

is at Seri Kembangan, so the price is a bit higher than another area but the

price is reasonable to pay the rental and it is good for our business prospect.

5.2 Transformation Process

15

Execution of strategic andtactical manufacturingstrategies


19/50


CONFIDENTIAL

5.3 Process Planning

16

Subjective reactiveproject planningprocess

Lack of coordinationacross planning, allocationand replacement teams

Synchronized financialassortment and locationplan

Limited merchandise reviewpolicies and mechanismsineffective forecastmethodologies

Cross-functionalmerchandising teams

Fully collaborativesupply chain


20/50


CONFIDENTIAL

5.4 Material Requirement Planning

5.4.1 Capacity planning output in units / operations time

17

Customer booking and design the project

Sketch and drawing the project that the customer wants

Start the project the he customer agree with the drawing

Test the serviced/repaired unit

Issue invoice & received payment

Last check project

Deliver project to customer


21/50


CONFIDENTIAL

For our operations, for service, we targeted for 1 to 2 months.

The service will require repairing and servicing the component at the

Wet & Dry Centralized Vacuum System which applied at the building.

The sales forecast that shown in the marketing plan shows that we

have to service around units 1 of Wet & Dry Centralized Vacuum

System per month on average. So to achieve this target, we will use to

target around 12 units per day cause our company will have a holiday

on Sunday. We take the average charge at RM 185,000 per project.

The table 5.4.2 is shown the sales forecast of services Dry Centralized

Vacuum System per month.

5.4.2 Raw materials requirement

PartsSupplier

Price perunit(RM)

Qty.Total price

(RM)

Compressor Technical Manager,Skanska Bina (M)

Sdn Bhd.No. 11, Jalan SgBesi Indah 5/2Taman Sg Besi

IndahSeri Kembangan,

43300Malaysia

20 000 5 100 000Aluminum pipe 4 500 20 90 000

Cement 73.33 150 11 000

Sensor/control units 850 20 17 000

Chemical 6000 5 30 000

Flare Nut 1700/pack 10 17 000

Insulation 100/pack 350 35 000

Spare part component 60 000 1 60 000

Total per year 360 000

5.5 Production and Operation Layout

18


22/50


CONFIDENTIAL

5.6 Production and Operation Budget

19


23/50


CONFIDENTIAL

6.0 ORGANIZATIONAL PLAN

20

Categories Type FixedAssets

Expenses(RM)

MonthlyExpanses

(RM)

Capital Expenditures/ Fixed Asset Cost Equipment 27 800

Working Capital/ Monthly Expenses RawMaterials

Salary +EPF +Socso

30 000

119 630

TOTAL 27 800 149 630


24/50


CONFIDENTIAL

6.1 Form of Ownership

Our company form of ownership is partnership. We chose

partnership because we can share the burdens and responsibilities

amongst partners helps to ease the stress on the individual. At the

same time can combine our skills, personal qualities and

administrational abilities with a view to greater efficiency.

6.2 Vision, Mission and Objectives

6.21 OUR VISION

To make automated waste management systems the standard

method for waste handling with AWMS as the preferred brand. To

make EF enterprise the employer of choice whilst providing fair

returns to our shareholder.

6.2.2 OUR MISSION

To provide product-viability through customized design at a fair

price. To provide a caring policy with career development

opportunities for our employees and a profitable return to our

shareholders.

6.2.3 OBJECTIVE

To provide new type of waste management which are good for the

environment.

AWCS naturally encourages us to recycle, conveniently because

AWCS helps our precious environment by ensuring the recyclable

dry wastes, that are typically bulky, are recycled instead of ending

up in landfill

6.3 Management Team

21


25/50


CONFIDENTIAL

Position Task and Responsibilities

General manager To plan, implement and control the overall management To plan and monitor the strategic progress of the business

To be accountable for the overall performance of the business

To make a decisions if something happen to the company.

Human resource

manager

The HRM will serve as HR business partner; strategicallylinking the HR agenda to business plans to drive results

Provide leadership and expertise for the full scope of the HRfunction including: employee relations, employeecompensation and benefits, employee engagement,organizational design and change, communications, careerdevelopment, recruitment and selection

Financial manager Create, coordinate, and evaluate the financial programs andsupporting information systems of the company to includebudgeting, tax planning, facilities, and conservation of assets.

Approve and coordinate changes and improvements inautomated financial and management information systems forthe company. Establish and maintain a financial measurementand reporting system, which provides management with

appropriate information and counsel.

Marketing manager Analyze, provide and present market dynamics, trends, size,opportunities and risks to the business, including updates tothe VP and CEO

Be completely linked in to the front line of the business,working closely with sales, commercial operations, product &platform leadership and customers

Operation manager Responsibility for planning all onsite operations activity Site IT Administration

Facilitates and maintains high EHS performance on the site.

Safety and QAmanager

Ensures high level of quality awareness through internalcommunications within the departments

Hosts periodic third-party product audits and coordinates anynecessary corrective action.

Performs physical configuration audits of products to verify

6.4 Organizational Chart

22


26/50


CONFIDENTIAL

6.5 Human Resource Plan

23


27/50


CONFIDENTIAL

Human resource planning is the term used to describe how companies

ensure that their staffs are the right staff to do the jobs. By doing this planning,

the workers can be put in section according to the individual capabilities.

Number of Staff

Position/Role 2012 2013 2014 2015 2016

General / Administration / Management Division

CEO / Chairman / Managing Director 1 1 1 1 1

Finance Manager 1 1 1 1 1

HR Manager 1 1 1 1 1

Accounts Clerk 1 1 1 1 1Research and Development / Technical Division

R&D Manager 1 1 1 1 1

System Engineer 1 1 1 1 1

Technical Engineer 1 1 1 1 1

Technician 3 3 1 1 1

Marketing / Sales / Business Development Division

Marketing Manager 1 1 1 1 1

Sales Manager 1 1 1 1 1

Business Development Manager 1 1 1 1 1

Account Executive 1 1 1 1 1

Operation / Production / Manufacturing Division

Operations Manager 1 1 1 1 1

Quality Assurance 1 1 1 1 1

Materials and Logistics 1 1 1 1 1

Engineering 3 3 3 3 3

Total No. Of Worker 20 20 18 18 18

Total Knowledge Workers 1 1 1 1 1

Total Foreign Knowledge Workers 0 0 0 0 0

% Of Knowledge workers 5.0% 5.0% 5.6% 5.6% 5.6%

Position/Role Monthly Salary

24


28/50


CONFIDENTIAL

General / Administration / Management Division 2012 2013 2014 2015 2016

CEO / Chairman / Managing Director 8.00 8.10 8.20 8.30 8.40

Finance Manager 5.00 5.10 5.20 5.30 5.40

HR Manager 5.00 5.10 5.20 5.30 5.40

Accounts Clerk 1.00 1.10 1.20 1.30 1.40

Research and Development / Technical Division

R&D Manager 5.00 5.10 5.20 5.30 5.40

System Engineer 3.00 3.10 3.20 3.30 3.40

Technical Engineer 3.00 3.10 3.20 3.30 3.40

Technician 1.50 1.60 1.70 1.80 1.90

Marketing / Sales / Business Development Division

Marketing Manager 5.00 5.10 5.20 5.30 5.40

Sales Manager 5.00 5.10 5.20 5.30 5.40

Business Development Manager 5.00 5.10 5.20 5.30 5.40

Account Executive 3.00 3.10 3.20 3.30 3.40

Operation / Production / Manufacturing Division

Operations Manager 5.00 5.10 5.20 5.30 5.40

Quality Assurance 3.00 3.10 3.20 3.30 3.40

Materials and Logistics 3.00 3.10 3.20 3.30 3.40

Engineering 3.00 3.10 3.20 3.30 3.40

TOTAL 63.50 65.10 66.70 68.30 69.90

7.0 FINANCIAL PLAN

25


29/50


CONFIDENTIAL

7.1 Revenue Model

YEAR

Product A 2012.00 2013.00 2014.00 2015.00 2016.00

Number of Units 12.00 12.00 12.00 12.00 12.00

Price per unit 185.00 188.00 185.50 188.60 190.89

TOTAL Product A 2220.00 2256.00 2226.00 2263.20 2290.68

Service B

Number of Customers 12.00 12.00 12.00 12.00 12.00Fee per customer 10.00 10.00 15.00 15.00 15.80

TOTAL Service B 120.00 120.00 180.00 180.00 189.60

TOTAL SALES FORECAST (NETREVENUE) 2340.00 2376.00 2406.00 2443.20 2480.28

7.2 Income Statement / Profit and Loss Statement

YEAR

2012 2013 2014 2015 2016

Sales (Revenues) 2,340.00 2,376.00 2,406.00 2,443.20 2,480.28

Less: Cost of Goods Sold (605.56) (614.48) (623.40) (635.28) (647.72)

Gross Profit 1,734.44 1,761.52 1,782.60 1,807.92 1,832.56

Operating Expenses General and Administrative

Expenses(1,169.63

)(1,192.13

)(1,209.02

)(1,231.19

) (1,253.36)Marketing (Advertising and Sales) (337.00) (336.00) (336.00) (336.00) (336.00)Interest:

Term Loan (9.97) (7.98) (5.98) (3.99) (1.99)Hire Purchase (2.96) (2.96) (2.96) (2.96) (2.96)

Depreciation Charges (15.79) (16.86) (16.86) (17.93) (18.42)Miscellaneous or Others (5.42) (4.15) (4.15) (4.15) (4.15)

Total Operating Expenses(1,540.77

)(1,560.07

)(1,574.97

)(1,596.21

) (1,616.88)

Profit (Loss) Before Tax 193.68 201.45 207.63 211.71 215.68

Corporate Tax1 48.42 50.36 51.91 52.93 53.92Minority Interest 0.00 0.00 0.00 0.00 0.00

Distributable Net Profit (Loss) 145.26 151.09 155.72 158.78 161.76

less: Dividend 0.00 0.00 0.00 0.00 0.00

145.26 151.09 155.72 158.78 161.76

7.3 Balance Sheet

26


30/50


CONFIDENTIAL

Pre-Operatio

n Projected Projected Projected Projected Projected2011 2012 2013 2014 2015 2016

FIXED ASSETS Machinery & Equipment 27.80 27.80 44.60 44.60 59.40 62.20Furniture & Fixtures 8.95 8.95 14.30 14.30 17.65 20.10Renovation 15.00 15.00 15.00 15.00 17.00 17.00Company Vehicles (Van, Car,Truck, Lorry, etc) 55.00 55.00 55.00 55.00 55.00 55.00(LESS accumulated depreciationon Fixed Assets) 0.00 (21.35) (47.13) (72.91) (102.72) (133.58)

TOTAL FIXED ASSETS 106.75 85.40 81.77 55.99 46.33 20.72

CURRENT ASSETS Cash 118.53 251.64 123.30 160.55 157.43 189.23Accounts Receivable (TradeDebtors) 0.00 0.00 206.60 175.68 181.43 116.01Inventory or Closing Stock forRaw Materials 0.00 30.00 30.00 30.00 30.00 30.00Inventory or Closing Stock forFinished Goods 0.00 30.00 30.00 30.00 30.00 30.00Prepaid Expenses 5.42 0.00 0.00 0.00 0.00 0.00

TOTAL CURRENT ASSETS 123.95 311.64 389.90 396.23 398.86 365.24Other Assets Deposits 6.00 6.00 0.00 0.00 0.00 0.00

TOTAL OTHER ASSETS 6.00 6.00 0.00 0.00 0.00 0.00

TOTAL ASSETS 236.70 403.04 471.67 452.22 445.19 385.96

LIBIALITIES AND EQUITIES CURRENT LIABILITIES Accounts Payable (TradeCreditors) 0.00 0.00 97.83 110.48 106.05 50.61

TOTAL CURRENT LIABILITIES 0.00 0.00 97.83 110.48 106.05 50.61

Long-term Debt (Bank LoansPayable)

Term Loan 99.70 79.76 50.19 19.31 20.03 19.67Hire Purchase 37.00 29.60 22.20 14.80 7.40 0.00

TOTAL LONG-TERM DEBT 136.70 109.36 72.39 34.11 27.43 19.67

TOTAL LIABILITIES 136.70 109.36 170.22 144.59 133.48 70.28

Owners' Equity Invested Capital 100.00 100.00 100.00 100.00 100.00 100.00Accumulated Capital 0.00 193.68 201.45 207.63 211.71 215.68

TOTAL OWNER'S EQUITY 100.00 293.68 301.45 307.63 311.71 315.68

TOTAL LIABILITIES ANDEQUITY 236.70 403.04 471.67 452.22 445.19 385.96

0.00 0.00 0.00 0.00 0.00 0.00

7.4 Cash Flow Statement

27


31/50


CONFIDENTIAL

Pre-Operation 2012 2013 2014 2015 2016Cash Inflow (Cash on Hand):

Equity - Cash 100.00 100.00 0.00 0.00 0.00 0.00

Term Loan 99.70 99.70 0.00 0.00 0.00 0.00Cash Sales 2,340.00 2,376.00 2,406.00 2,443.20 2,480.28

Total Cash Inflow 199.70 2,539.70 2,376.00 2,406.00 2,443.20 2,480.28

Cash Outflow (Cash Paid Out)

Operational Expenditure:

Raw Materials 360.00 360.00 360.00 360.00 360.00

Direct Labor 180.00 180.00 180.00 180.00 180.00

Operational Overheads 120.00 120.00 120.00 120.00 120.00

Marketing Expenditure:

Sales Commission 60.00 60.00 60.00 60.00 60.00


Advertisement TV & Internet 120.00 120.00 120.00 120.00 120.00

Advertising Fees (Ads Agency, PR) 18.00 18.00 18.00 18.00 18.00

Promotions 30.00 30.00 30.00 30.00 30.00

Tele-Marketing 24.00 24.00 24.00 24.00 24.00

Brochures/Flyers/Banners 24.00 24.00 24.00 24.00 24.00

Printing and Stationary 12.00 12.00 12.00 12.00 12.00


Administrative Expenditure:

Salaries & Wages 762.00 781.20 800.40 819.60 838.80EPF & SOCSO 119.63 122.93 120.62 123.59 126.56

Utilities 6.00 6.00 6.00 6.00 6.00

Rental 18.00 18.00 18.00 18.00 18.00

R&D Expenses 240.00 240.00 240.00 240.00 240.00

Professional Fees 24.00 24.00 24.00 24.00 24.00

Loan Repayment:

Loan Principal 19.94 19.94 19.94 19.94 19.94

Loan Interest 9.97 7.98 5.98 3.99 1.99

Hire Purchase Repayment:

Down Payment 18.00 18.00 0.00 0.00 0.00 0.00

Loan Principal 7.40 7.40 7.40 7.40 7.40

Loan Interest 2.96 2.96 2.96 2.96 2.96Capital Expenditure:

Machinery & Equipment 27.80 27.80 16.80 0.00 14.80 2.80

Furniture & Fixtures 8.95 8.95 5.35 0.00 3.35 2.45

Renovation 15.00 15.00 0.00 0.00 2.00 0.00

Pre-operational Expenditure 5.42 5.42 4.15 4.15 4.15 4.15Deposits 6.00 6.00 0.00 0.00 0.00 0.00

Total Cash Outflow 81.17 2,299.07 2,264.70 2,257.45 2,297.77 2,303.05

Cash Surplus/(Deficit) 118.53 251.64 123.30 160.55 157.43 189.23

Beginning Cash Balance 0.00 0.00 251.64 374.93 535.49 692.91Ending Cash Balance 118.53 251.64 374.93 535.49 692.91 882.14

240.64 111.30 148.55 145.43 177.23

7.5 Break-Even Analysis

28


32/50


CONFIDENTIAL

2012 2013 2014 2015 2016

Sales (Revenue) 2,340.00 2,376.00 2,406.00 2,443.20 2,480.28

Cost of Goods Sold Variable Costs 420.00 420.00 420.00 420.00 420.00Fixed Costs 185.56 194.48 203.40 215.28 227.72

Total 605.56 614.48 623.40 635.28 647.72

Operating Expenses Variable Costs 5.42 4.15 4.15 4.15 4.15

Fixed Costs 1,564.35 1,585.92 1,600.82 1,622.06 1,642.73Total 1,569.77 1,590.07 1,604.97 1,626.21 1,646.88

Total Costs and Expenses Variable Costs 425.42 424.15 424.15 424.15 424.15Fixed Costs 1,749.91 1,780.40 1,804.22 1,837.34 1,870.45

Total 2,175.33 2,204.55 2,228.37 2,261.49 2,294.60

Variable Costs/Revenue Ratio 0.18 0.18 0.18 0.17 0.17

Break Even Point Revenue 2,138.73 2,167.29 2,190.35 2,223.32 2,256.30

7.6 Financial Ratios

29


33/50


CONFIDENTIAL

2012 2013 2014 2015 2016

Profitability Ratios Gross Profit Margin 74.12% 74.14% 74.09% 74.00% 73.89%Net Profit Margin 8.28% 8.48% 8.63% 8.67% 8.70%Return on Investment (Return onAssets, Return on CapitalEmployed, ROCE or PrimaryRatio)

48.05% 42.71% 45.91% 47.55% 55.88%

Return on Equity 65.95% 66.83% 67.49% 67.92% 68.32%

Liquidity Ratios (SolvencyRatios)

Current Ratio 03.99times

3.59times

3.76times

7.22times

Quick Ratio (Acid Test Ratio) 03.37times

3.04times 3.2 times

6.03times

Financing Ratios

Gearing Ratio (Debt to Equity)0.37times

0.24times

0.11times

0.09times

0.06times

Debt to Total Assets 27.13% 15.35% 7.54% 6.16% 5.10%

Interest Cover (Interest CoverageRatio)

14.98times

18.42times

23.22times

30.47times

43.54times

7.7 Costs Controls

30


34/50


CONFIDENTIAL

YEAR

2012 2013 2014 2015 2016

Raw Materials 360.00 360.00 360.00 360.00 360.00

Direct Labor 180.00 180.00 180.00 180.00 180.00

Manufacturing Overheads 120.00 120.00 120.00 120.00 120.00

Depreciation 5.56 14.48 23.40 35.28 47.72

Costs of Goods Manufactured 635.56 644.48 653.40 665.28 677.72

Opening Stock for Raw Materials (as at Jan 1) 0.00 0.00 0.00 0.00 0.00

Closing Stock for Raw Materials (as at Dec 31) 30.00 30.00 30.00 30.00 30.00

Opening Stock for Finished Goods (as at Jan 1) 0.00 0.00 0.00 0.00 0.00

Closing Stock for Finished Goods (as at Dec 31) 30.00 30.00 30.00 30.00 30.00TOTAL COST OF REVENUE 605.56 614.48 623.40 635.28 647.72

Allocation of Cost of Revenue between:

Variable Costs 420.0 420.00 420.00 420.00 420.00

Fixed Costs 185.6 194.48 203.40 215.28 227.72

7.8 Budgeting plan

Administrative Budget 2012 2013 2014 2015 2016

Pre-operational Expenditure 5.42 4.15 4.15 4.15 4.15Land & Buildings 0.00 0.00 0.00 0.00 0.00

Machinery & Equipment 27.80 44.60 44.60 59.40 62.20

Furniture and Fittings 8.95 14.30 14.30 17.65 20.10

Company Vehicles 55.00 55.00 55.00 55.00 55.00

Office/Shop Lot Renovation 15.00 15.00 15.00 17.00 17.00

Salaries & Wages (included EPF & SOCSO) 881.63 904.13 921.02 943.19 965.36

Rental 18.00 18.00 18.00 18.00 18.00

Utilities (Telephone/Water/Electricity) 7.50 6.00 6.00 6.00 6.00

Down Payment Hire Purchase 20.96 2.96 2.96 2.96 2.96

Bank Loan (Term Loan) 9.97 7.98 5.98 3.99 1.99

R & D Expenses 240.00 240.00 240.00 240.00 240.00Professional Fees 24.00 24.00 24.00 24.00 24.00

TOTAL 1314.23 1336.11 1351.01 1391.33 1416.76

Marketing Budget 2012 2013 2014 2015 2016Sales Commission 60.00 60.00 60.00 60.00 60.00


31


35/50


CONFIDENTIAL

Advertisement (TV, Radio, Internet, etc) 120.00 120.00 120.00 120.00 120.00

Advertising Fees (Ads Agency, PR, etc) 36.00 36.00 36.00 36.00 36.00

Promotions 30.00 30.00 30.00 30.00 30.00

Tele-Marketing 24.00 24.00 24.00 24.00 24.00

Brochures/Flyers/Banners/Posters/BusinessCards 24.00 24.00 24.00 24.00 24.00

Printing and Stationeries 12.00 12.00 12.00 12.00 12.00


TOTAL 366.00 366.00 366.00 366.00 366.00

8.0 MILESTONE SCHEDULE

8.1 Timing and Objectives

In 5 years of company established, we should already covered half of

the objective. The objectives are to let all Malaysian house and hypermarket

to use this system and at the same time upgrade our system to be more

capable in handling the wastes. In 5 years to achieve this objective, our

company will joins most of the exhibitions and conferences to get more input

in what going on in other advanced country. We also will continuously

improve our system by frequently update the system by using the latest

product in market.

8.2 Deadlines and Milestones

32

Research for a

new type

pneumatic

system

Join the

government go

green campaign


36/50


CONFIDENTIAL

9.0 RISK ANALYSIS

33

Establish the company

Run the first project

Join the exhibition

by WWF at KLCC

2nd project planning

Run 2nd project

Get government

project

Establish new

support centre at

Pulau Pinang

Maintain all

the facilities

equipment

3rd project

planning

Run 3rd project

4th and 5th

projectplanning

Run the 4th and

5th project

Host the

conference of

modern waste

management

system

2016


37/50


CONFIDENTIAL

9.1 Potential Problems

Capital

The Automated Waste Collection System is a pneumatic waste-

conveying system that transports municipal or household waste at high

speeds via reticulated pipes to a Central Waste Handling Facility, so huge

sum of capital needed to start this project. The capital should be cover to

build the Central Waste Handling Facility, underground pipes and machines

that required operating the system.

Competitor

Before the Automated Waste Collection, Malaysian people use the

conventional system to manage their waste. Because Automated Waste

Collection is still new in this country, it will be hard to compete with other

competitor. This happen because Automated Waste Collection is in a waste

management category, there a various type of company who run the

conventional waste management so customers still has opportunity to select

which one of the services they prefer.

Time

The Automated Waste Collection require us to build underground

pipes and at the same time a Central Waste Handling Facility to gather the

waste, so it can be conclude that a specific time are require to make this

system happen. It is impossible for us to carry out the system immediately at

the certain place.

Population

This system is still new in this country, we cant run the project unless

there are more 10 000 peoples live in one place. It is because our company

cant afford to build many underground pipes in a less population of people to

prevent energy waste and profit loss.

Distance

34


38/50


CONFIDENTIAL

The Automated Waste Collection System can only transports waste to

distances up to 2km or more only. So it will be impossible for a district that

situated more than 2km away from the Central Waste Handling Facility.

9.2 Obstacles and Risks

Risk analysis is a technique that helps to define preventive measures to

reduce the probability of these factors from occurring and identify

countermeasures to successfully deal with these constraints when they

develop to avert possible negative effects on the competitiveness of the

company. Reference class forecasting was developed to increase accuracy in

risk analysis. Below are the lists which may jeopardize the success of this

project.

Cost

The cost to equip and maintain this will be enormous because theAutomated Waste Management System is a pneumatic waste-conveying

system that transports municipal or household waste at high speeds via

reticulated pipes to a Central Waste Handling Facility. The first cost should be

to build the underground pipes for the waste transport and second will be the

cost to maintain the pneumatic compressors. Customers will be doubtful to

buy this system because of the cost require.

Requirement

The Automated Waste Management System required at least 10 000

peoples at entire district to make the system run without waste of energy.

What we say is the system requires a place with pact of people residual at the

settlement. So it only suitable equip at a condominium or hypermarket facility

who can handle many people at one place.

35


39/50


CONFIDENTIAL

Distance

The Automated Waste Management System can only transports

waste to distances up to 2km or more only. So it will be impossible for a

district that situated more than 2km away from the Central Waste Handling

Facility.It can be conclude that every system that we install require a new

Central Waste Handling Facility to cover the entire place in Malaysia.

Retrieve

Because the AWMS is a pneumatic waste-conveying system that

transports municipal or household waste at high speeds, it will be hard to

notice when the wastes are being transport and of course it will be impossible

to retrieve back the things that you already throw away.

36


40/50


CONFIDENTIAL

10.0 CONCLUSION

The future of Environmental Friendly Enterprise to be the most

successful environmental based company is high. This is because the main

competitors of this company are Nexaldes Sdn. Bhd. and ST Environmental

Technologies and Service only. Less competitors means more opportunities

to promote AWMS in upcoming project that will be done in this area.

AWMS technology will be open at a price of RM 185,000 per unit.

According to the market price in Selangor, this price is considered the

cheapest price. High quality material has been chosen in order for the product

to last longer compare to low quality material. With the cheapest price in the

market, the customers get will have integrated design that has been designed

by Environmental Friendlys Research and Development Team.

The main target market of the company at Selangor makes the

company easier to sell its products as the waste management system is

highly in demand in this area. The construction companies in this area are

very active in constructing new building over the year. It is assumed that the

company can sell its product minimum of 1 per month. This equals to among

RM 2,000,000 to RM 2,500,000 of total gross profit per year. All in all, the

company has a great potential to be successful in the future.

Resume

37


41/50


CONFIDENTIAL

Personal Particulars

Full Name : AMMIRUL AKHMAL ASYRAF BIN AMANAge : 22Nationality : MALAYSIA

Contact InfoTelephone Number : 014-9916594Home Address : SS2/14 JALAN ABANG TEK, TANJUNG

KIDURONG, 97000 BINTULU SARAWAKEmail Address : [email protected]

Education Background

Level : Diploma

Course : Automotive EngineeringInstitute : Kuala Lumpur Infrastructure University CollegeResult : 2.945 CGPA

Level : Sijil Pelajaran Malaysia (SPM 2006)School : SMK KidurongCourse : Pure Science

Other Information

Employment History

38


42/50


CONFIDENTIAL

1. Shin Yang Sdn Bhd

Position Title (Level) : DirectorSpecialization : Marketing/Business DevelopmentRole : ManagementIndustry : Forestry

Language

Malay Excellent Excellent Excellent

English Excellent Excellent Excellent

Strength1) Excellent-organizational skills2) Teamwork

3) Problem solver

4) Hard worker

5) Creative

39


43/50


CONFIDENTIAL

Personal ParticularsFull Name : MOHD RASHDAN BIN UJANGAge : 24Nationality : MALAYSIA

Contact InfoTelephone Number : 019-2829359Home Address : No 15, Jalan BJ 31, Taman Bertam Jaya,

75250, Melaka, MalaysiaEmail Address : [email protected]

Education BackgroundLevel : DiplomaCourse : Mechanical Engineering (Automotive)Institute : Kota Bahru PolytechnicResult : 3.37 CGPA

Level : Sijil Pelajaran Malaysia (SPM 2004)School : Malacca High SchoolCourse : Mechanical Engineering

40


44/50


CONFIDENTIAL

Other Information

Employment History

2. Western Digital Malaysia

Position Title (Level) : Production Control (Non-Executive)

Specialization : Marketing/Business DevelopmentRole : Product ManagementIndustry : Electrical & Electronics

Language



Strength6) Excellent-organizational skills7) Teamwork

8) Problem solver

9) Hard worker

10) Creative

41


45/50


CONFIDENTIAL

Personal ParticularsFull Name : MOHAMMAD SALLEHUDDIN BIN JASMINAge : 24Nationality : MALAYSIA

Contact InfoTelephone Number : 017-6332468Home Address : KM32, JALAN PARIT PENGHULU BENTENG,

77400 SUNGAI RAMBAI, MELAKAEmail Address : [email protected]

Education BackgroundLevel : Diploma (December 2009)Course : Automotive TechnologyInstitute : Kuala Terengganu Community CollegeResult : 2.99 CGPA

Level : Certificate (July 2007)Course : Automotive TechnologyInstitute : Ledang Community CollegeResult : 3.31 CGPA

Level : Sijil Pelajaran Malaysia (2004)School : Sekolah Menengah Kebangsaan Sagil Tangkak

Other Information

42


46/50


CONFIDENTIAL

Employment History

1. Proton Edar Sdn Bhd (January 2010-June 2010)

Position Title (Level) : Technician (Non-Executive)Specialization : Engineering - Mechanical/AutomotiveRole : Technician/SupportIndustry : Automobile / Automotive Ancillary / Vehicle

2. Proton Edar Sdn Bhd (July 2008-July 2009)

Position Title (Level) : TraineeSpecialization : Engineering - Mechanical/AutomotiveRole : Technician/SupportIndustry : Automobile / Automotive Ancillary / Vehicle

3. LB Auto Sdn Bhd (July 2007-December 2007)

Position Title (Level) : TechnicianSpecialization : Engineering - Mechanical/Automotive

Role : Technician/SupportIndustry : Automobile / Automotive Ancillary / Vehicle

Language



Strength11)Excellent-organizational skills12)Teamwork

13)Problem solver

14)Hard worker

15) Creative

43


47/50


CONFIDENTIAL

Personal ParticularsFull Name : MOHAMMAD ANNAZIFF BIN MOHAMADAge : 23Nationality : MALAYSIA

Contact InfoTelephone Number : 014-9326263Home Address : Lot 2469 Kampung Banggol Jenerih

17500 Tanah Merah, Kelantan.

Email Address : [email protected]

Education BackgroundLevel : DiplomaCourse : Mechanical Engineering (Automotive)Institute : Kota Bahru PolytechnicResult : 3.3 CGPA

Level : Sijil Pelajaran Malaysia (SPM 2005)School : Sekolah Menengah Tanah Merah, KelantanCourse : Mechanical Engineering

Other Information

44


48/50


CONFIDENTIAL

Language




18)Problem solver

19)Hard worker

20) Creative

45


49/50


CONFIDENTIAL

Personal ParticularsFull Name : MOHAMMAD HANIF BIN AZHARIAge : 17Nationality : MALAYSIA

Contact InfoTelephone Number : 013-3988904

Home Address : BF-G-18, Jalan Pandan Indah 5/20, PandanIndah,55100 Kuala Lumpur, Selangor Darul Ehsan

Email Address : [email protected]

Education Background

Level : DiplomaCourse : Automotive Maintenance TechnologyInstitute : UNIKL MFI

Result : 2.8 CGPA

Level : Sijil Pelajaran Malaysia ( SPM ) (2006 2007 )School : Sekolah Menengah Kebangsaan Teknik GombakCourse : Mechanical Engineering

46


50/50


CONFIDENTIAL

Other Information

Language




23)Problem solver

24)Hard worker

25) Creative

Environmental Friendly Enterprise

Documents

Transcript of Environmental Friendly Enterprise