1.

0 Executive Summary

The proposed company, Cuppacakes (M) Sdn. Bhd, is a company that sell
products with minion theme,that is,minion cupcake and minion sticks . Cuppacakes
(M) Sdn. Bhd will be a specialty bakery, focused on providing healthy and lovely
goods to the market.Our company vision is Being a company of excellence, glory and
distinction in Malaysia.Our mission include high quality cupcakes,customer is the
king and no loss in business.

Cuppacakes (M) Sdn. Bhd is share by 10 shareholders,each of the shareholder

contribute different amounts of money to start this business.Although this is a newly
established company,all of us believe that with our cooperation in experience and
skills,we can still survive in the market.

The marketing strategy and operation strategy are well planned before the
starting of our business.Marketing manager has come up with some marketing
strategy such as discounts and promotion in order to increase our sales to meet the
sale forecast.On the other hand,operation manager will ensure that the production line
for our products is in high quality and free from contamination so that our company
can provide fresh and good products to the market.

In term of financial planning,it is expected that the majority of revenue in the

first year will be derived from in-store retail purchases and also the custom orders for
special events. All of the income statement,profit and loss and balance sheet
projection are well prepared so that we can determine and identify the financial state
of the company.This is important for us to conduct further action to maintain the
stability of financial of company.

Overall, Cuppacakes (M) Sdn. Bhd shows good potential as a local business
due to well planned and highly organised in term of company structure and
operation.Our weaknesses are ad- dressed in a way that minimizes the negative
impact on the bakery’s bottom line. Although our company is small compared with
multinational companies present in Malaysia, we uphold the ambition to grow up to
become the most popular brand in Malaysia and worldwide.
2.0 Introduction

2.1 Name of the company

Cuppacakes (M) Sdn. Bhd.

2.2 Nature of the business

Cuppacakes (M) Sdn. Bhd. is a start-up local bakery company that focus on
the production and sales of vast variety of cupcakes and snacks. With the broad
variety of cupcakes and snacks,Cuppacakes expects to catch the interest of regular
loyal customer base and will therefore concentrate the business and marketing on
local residents, which will be the dominant target market. This will establish a
healthy, consistent revenue base to ensure stability of the business.

Our sales and productions are base on the theme “minion” which is quite
popular among teenagers todays. The core values of the company are high supply
reliability,continuous high quality,a high level of certification,smart innovation and
short development processes.The company provides freshly prepared cupcakes at all
times during business operations. Six to eight moderate batches of cupcakes are
prepared during the day to assure fresh baked goods are always available.With the
delicate design of cupcake and a suitable price to meet the demand of lower to higher
income local market area residents and tourists,Cuppacakes company will surely has a
competitive advantage over other competitiors in the market. Our company plans to
build a strong market position in the town due to the partners’ industry experience.
2.3 Industry Profile

2.3.1 Company and industry plan

The plan above is about our bakery shop which is located on the ground floor.
We choose to have a double storey shop is because we will have a small industry for
production on the second floor.

For our industry,there is a continuous production of minion cupcake and

minion sticks everyday.The activity that will be carry out in the small industry include
the preparation of raw materials,baking and decoration and then the packaging of the
products.The products being produced are then sent to ground floor for sale.The
operation time for industry is as below :
• 4:00 am – Start Baking
• 8:00 am – Bakery Opens
• 5:00 pm - Bakery Closes
• 6.00 pm - Cleaning and preparation for next day
2.4 Location of the business

Cuppacakes (M) Sdn. Bhd. is incorporated in Subang Jaya, Selangor at the

area of Jalan SS 19/2A .

2.5 Date of business commencement

The business is commenced on 30 May 2006.

2.6 Factors in selecting the proposed business

The factors of selecting the proposed business is due to the popularity of our
theme “minion” among teenagers.By combining minion together with cupcake,a new
version of cupcake is produced and surely has a high potential to edge out and topped
the rest of competitiors who are just producing normal cupcakes in local market.

Besides,due to delicate design with some sweet and sour taste of the
cupcake,minion cupcake must be able to catch the attention of students nearby and
thus we can establish a loyal customer base in the market.Comparing to the high fat
and sugar cupcake in the market,minion cupcake which is less fat and sugar can meet
the demand of customer who focus more on healthy food nowadays.
3.0 BUSINESS PROFILE

Company’s name : Cuppacakes (M) Sdn. Bhd.

Business address : 14 Jalan SS 19/2A Damansara Utama, 57400

Jaya, Selangor, Malaysia

Contact : Tel : 03-77258930

Fax: 03-77289931

E-mail : cuppacakes@yahoo.com

Facebook : Cuppacakes Lovers

Main activity : Bake fresh cupcakes with unique and exotic flavours.

Date of commencement : 1 December 2013

Date of registration : 15 Oktober 2013

Registration number : MAL397678T

Name of bank : Maybank(M) Bhd.

Company account number : 1520-6885-4395

5.0 LOCATION OF THE BUSINESS

5.1 Location Plan

5.2 Pictures of The Premise

 Our company will rent a double storey shop at Jalan SS 19/2A.It is located in
Damansara Utama.This area is crowded with residential area and offices since several
private colleges are established in Petaling Jaya district.

5.3 Reason for the location chosen

5.3.1 Crowded Area

Our bakery shop is located in the the entrance of the commercial area.
Besides, since several private colleges are established in Petaling Jaya district,there
are a lot of residential areas nearby.Such condition provide us with a lot of customer
base either students or children from housing estate.Large customer base will ensure
the survival of our business in future.

5.3.2 Infrastructure

The area around our bakery shop is well equiped with all the infrastructure
needed for starting up a business.There is a large parking area just opposite to our
shop.This gives our customers a sence of conveience when purchasing in our shop.In
additon,such area is crowded with public transport likes bus,LRT station and taxi.This
enables customers either tourists or students to come to our shop without a worry on
traffic jamp and so on.

5.3.3 Accessment

Besides the infrastructure available,the location we selected is also the main

transportation line for most of the suppliers.Base on the survey conducted by our
workers,most suppliers will pass by our shop everday and this is important because
we can ensure continuous supply of raw materials for our company so that there will
be no any breakage in our production line.Constant supply of raw materials also vital
for the production of fresh cupcakes.

6.0 Organization of the Business

6.1 Manpower Planning

Although our company is a newly established company, we are very confident

in ourselves. Each us has experience in handling business thus it would not be a big
problem for us. All 10 shareholders hold qualifications in relevant fields. All of us
also possess the necessary skills and working experiences to manage a baking and
pastry business. Our hard work and determination will definitely bring prosperity to
our business.

Basically,the General Manager and managers of all departments are the main
decision makers. The General Manager leads our team of administrative staffs.
Assisting the General Manager are the Financial Manager, Operation Manager,
Human Resource manager and Marketing Manager.

The managing department is subdivided into 4 bureaus, namely Financial,

Human Resource, Operation and Marketing. Each of the bureau is administrated by its
respective manager.

On the other hand, we also have a strong team of operations staff. They are
responsible in ensuring the smooth daily operations of our company, for example,
producing and selling quality minion cupcakes and minion sticks. Leading the team of
operations staff is the head baker. He is assisted by two assistants.

Besides, we also have a promoter, a delivery person and two general

workers.Each of them play important roles in maintaining the cleanliness and routine
of our business.All of them are skilled and well-trained to ensure the good service
attitude and high productivity.

In conclusion,the above manpower planning is necessary for our company to

reach a greater height and become the dominance in the market of cupcake.

6.2 Organization Chart

 General Manager

WOON JIA JIE

FINANCIAL HUMAN MARKETING OPERATION

MANAGER RESOURCE MANAGER MANAGER
MANAGER
NUR ASMAA
AW YEONG LEE SHI MIN LAVANIYA

BAKER
DELIVERY
PROMOTER IVY NGAU
PERSON
CHOO HUI JUN ASSITANT BAKER

HANEEDA NOR AZLIN

NURNAJIHAH
GENERAL
WORKER

6.3 Division of Labour

Process Details Staff Responsible
Source of raw ~ Searching of raw materials needed for 1. General Manager
materials production
~ Contact suppliers for the constant
supply of raw materials
Preparation ~ Planning for the production of minion 1. Assistant Baker
cupcakes and marshmallow base on the
order rceceived.
~ Involve weighing and dough mixing to
produce various type of products
Manufacture ~ Process of manufacturing of minion 1. Head Baker
cupcakes and marshmallow
~ Decoration of cupcakes 2. Assistant Baker
~ Systemic control quality of the products
Packaging ~ Identify the most economic and suitable 1. Assistant Baker
ways of packaging the products
~ Make sure the products are well packed 2. General Workers
to prevent contamination
Promotion and ~ Promote the products to customer 1. Marketing
sales ~ Serve the customers in shop Manager
~ Make sure there is enough stocks in
the shop 2. General Worker
Transportation ~ Deliver products to customers who 1. Delivery Person
order the products in large amounts
Cleanliness ~ Ensure industry and shop cleanliness 1. General Worker
~ Cleaning of all equipments after baking
process
Collection ~ Collect the money and process the 1. Financial
various payment method. Manager
~ Analysis the financial statement of
company.
6.4 Designation and Name of Staff

NAME POSITION NO. OF PERSON

Woon Jia Jie General manager 1
Aw Yeong Zhi Sheng Financial Manager 1
Lavaniya A/P Gunasegar Operation Manager 1
Lee Shi Min Human Resource Manager 1
Nur Asmaa binti Abu Bakar Marketing Manager 1
Choo Hui Jun Promoter 1
Ivy Ngau Mei Yee Head Baker 1
Nor Azlin Bt Md.Basri Assistant Baker 2
Nur Najihah Mohamad Fauzy
Haneeda Hazwani Bt Humaidi Delivery Person 1
Mohamad Ali General Worker 2
Mohamad Abu
6.5 Duties and Responsibilities

POSITIO MINIMUN POSITION RESPONSIBILITIES

N QUALIFICATION
( SKILL/EXPERIENCE )
General  Have a degree in business  Lead all matters relating t
Manager administration or related fiel o the management of the
d company.
 Have proficiency  Ensuring the company
in Malay and English  objective and mission can
 Experience at be achieved according to
least 3 years in related fields. action plan.
 Computer literacy.  Representing the
company in any discussio
n or public relations.

 Report to shareholders on
the progress and problem
s faced by the company.
Operation  Have a degree in business  Manage the quality of
Manager administration or related fiel products and ensure
d problems are handled
 Have proficiency efficiently.
in Malay and English  Set a rules and procedures
 Experience of at for staff to follow in order
least 3 years in related fields for the production to run
 Computer literacy smoothly.

 Control and determine the

operation cost within the
company budget.

Financial  Have a  Control of the company's

Manager degree in accounting or finan financial.
 Prepare monthly and
 cial management. annual cash flow and
 Have proficiency income statement.
in Malay and English
 Review the company's
 Experience of at
financial from time to
least 1 years in related fields.
time to ensure
 Proficient use
that no irregularities or
of computer accounting appli
fraud problems occur.
cations such as SPSS,
 Report the
especially.
financial position of the
company to
shareholders at least once
every two months.

Marketin  Have a  Manage the company's

g degree in marketing or related product marketing agency
Manager field  Ensuring the company's
 Have proficiency product sales reach the
in Malay and English expected sales target.
 Experience of at  Analyze SWOT( Strength,
least 1 years in marketing. Weakness, Opportunity
 Creative and think logically and Threat) of the
company and competitors.

 Think of new
ways to promote products 
and brand name of the
companies.

6.6 Staff Remuneration

Position Monthly EPF (13%) SOCSO Total Monthly
Base Salary ( ( RM ) (2%) Remuneration ( RM )
RM ) ( RM )
General 1913.04 248.70 38.26 2200.00
Manager
Financial 1478.26 192.17 29.57 1700.00
manager
Operation 1478.26 192.17 29.57 1700.00
Manager
Human 1478.26 192.17 29.57 1700.00
Resource
manager
Marketing 1478.26 192.17 29.57 1700.00
manager
Head Baker 1043.48 135.65 20.87 1200.00
Assistant 782.61 x 2 101.74 x 2 15.65 x 2 900.00 x 2
Baker =1565.22 = 203.48 = 31.30 =1800.00
(2 persons) ( 2 persons )
Promoter 782.61 101.74 31.30 900.00
Delivery 782.61 101.74 31.30 900.00
Person
General 782.61 x 2 101.74 x 2 15.65 x 2 900.00 x 2
Worker =1565.22 =203.48 =31.30 =1800.00
(2 persons) ( 2 persons )
Total 15600.00

6.7 List Of Office Equipment

6.7.1 Office equipment and furniture

Equipment Quantity Price/unit (RM) Total Cost( RM)

Computer 3 1500.00 4500.00
Printer 1 200.00 200.00
Fax machine 1 300.00 300.00
Table 5 300.00 1500.00
Chair 10 60.00 600.00
Air conditioner 1 900.00 900.00
Total 8000.00

6.7.2 Shop equipment and furniture

Equipment Quantity Cost / Unit (RM) Total Cost (RM)

Table 15 130.00 1950.00
Work Table 3 150.00 450.00
Chair 20 60.00 1200.00
Oven 3 2500.00 7500.00
Refrigerator 2 2500.00 5000.00
Mixers 2 250.00 500.00
Miscellaneous 300.00
Total 16900.00

6.8 Administrative Budget

ADMINISTRATIVE BUDGET
Particulars Fixed Monthly Others Total
Assets
Fixed Assets
Office Equipment 5,000 5,000
Office Renovation 2,000 2,000
Office Furniture 3,000 3,000
Working Capital
Salaries, EPF & SOCSO 9,000 9,000
Office Supplies 300 300
Office Utilities 200 200
Office Maintenance 200 200
Pre-Operations & Other Expenditure
Business Registration & Licences 4,000 4,000
Insurance 1,000 1,000
Other Pre-Operations Expenditure 500 500
Total 10,000 9,700 5,500 25,200

7.0 Marketing Plan

7.1 Product Description

Products Descriptio Price / Unit Specialty

( RM )
Minion * Cupcakes with unique and 1.50 * Present of minion
Cupcakes exotic flavors. character make the
* Combination between cupcake lively and
cupcakes and marshmallow. adorable.
* Minion character is * Low fat content of
represented by the cupcake with sour
marshmallow on top of the taste make it a
cupcake. healthy food and
* Further decorated with improve the appetite
 chocolate cream. of children
Minion * 3 minion marshmallow per 1.00 * Decorated
Stick stick. Marshmallow based
* Cylindrical-shapes on the theme
marshmallow coated with “minion” are joined
edible food dye in stick,give it a
(blue and yellow). lovely and attractive
* White-colored candies appearance.
attached to the marshmallow
as the minion’s eye. * Combination of
* Chocolate cream is used to sweet and sour taste
complete the decoration and in this product
give flavour to the
marshmallow.

7.2 Identification of Target Market

7.2.1 Benefits of our products

A) Price
The price of our minion cupcakes is reasonable and affordable
compared to our competitors.

B) Design and Illustration of Product

Our company has come up with a brilliant idea that is to make minions
from marshmallows. The various type of minion help us coming up with
more minion designs so that customers will have a wide range of choices.

C) Sales Promotion
There are two types of promotion conducted in our company, promotions
with incentives and without incentives. Promotion with incentives is like
 we are giving discounts on the price of the cupcakes if the customer orders
more than 50 cupcakes. This will actually encourage customers to buy
more. Promotion without incentives for example is advertising the
company. Advertisement would actually draw in new customers who
needs our service and thus increase our sales.

7.2.2 Ways to identify target market

A) Geographic

The strategic location attract customer live around SS 14 to SS 19.Besides,

such location also attract foreign customer.

B) Demographic

Minion cupcake and minion sticks tend to attract customer from 8 to 40

years old.Such healthy cupcake is available for students,office worker and
also tourists.
After analysing the target market for our products,we can conclude that our target
may range from 8 to 40 years old which may include students,office worker and also
tourist who live near SS 14 to SS 19.

7.3 Market Size Calculation

Market size means the total market size of potential buyers, including our
target market under the control of our competitors in the existing market.

There was a survey on the internet published in 2012 stated that the cupcake
business is gaining popularity among people compared to other pastries. However,
there should be at least 20 flavours of cupcakes so that the customers would have a
wide range of choices. The most basic flavours are chocolate, strawberry and vanilla
and chocolate has the most number of buyers that is 46% of the total buyers. A study
has shown that 62% of customers prefer to order cupcakes according to certain
themes and colours, for example, cartoon themed cupcakes for a five year old
birthday party.
 Based on the survey conducted by our company,among 100 people being
surveyed,almost 83 people choose to buy cupcake as their foods compared with other
snacks and desserts which are unhealthy.In addition,the result of survey on theme of
the cupcake showed that 73 % of the people choose minion cupcake as their first
choice if compared with other cupcakes such as fruit cupcake and ice-cream cupcake.

Thus,it prove that the market size for cupcake is very large ( about 75 % ) and
thus the is a high potential for us to earn some profits for our business.

7.5 Market Share Estimation

Market Share Estimation for Year 2013

 Sales
Cuppacakes Mycuppycupcake
Sweet Touch Cupcakes My Hearts Cupcakes
M&M Cupcake

15%
10%

15%
50%
10%

Market share by definition is the percentage or proportion of total available

market.

Based on the pie chart shown on the market share estimation of list of
competitors with Cuppacakes company,our company get the highest sales in the
market.The share we estimated to get is about 50 % compared with Sweet Touch
Cupcake and M&M Cupcake which only share 15 % and Mycuppycupcake and My
Heart Cupcake which only share 10 % of the sales in the potential market.

The main reason for us to dominate the market is the popularity of our
cupcake in the market.Although our company is just newly emerged in the market,the
minion cupcake which use minion character as decoration has won the heart of many
customers according to the survey conducting by our workers.

Besides,the location of our company which is near to the crowded area further
increase our competitive advantage over other opponents.Most students,office ladies
and even tourists is willing to come to our shop because the location is convenience
for most of them.

In addition,the present of multiple infrastructure and the suppliers available

allow us to produce fresh cupcakes all the timesThis enables us to maintain the quality
of our cupcakes and thus,ensure the healthy of our customers.Fresh and healthy
cupcake are one of the reason of dominancy of Cuppacakes in the market.

In conclusion,the highest market share owned by our company is a good

startup point for our business.Analysis and survey showed that the market share
owned by our company will continue to increase over the next few years if the action
plan is completely done by all authority concerned.

7.6 Monthly Sale Forecast

7.6.1 UNIT SALES

 SALES
JAN FEB MAR APR MAY JUNE
FORECAST
MINION
30000 30000 30000 30000 30000 30000
CUPCAKES
MINION
15000 15000 15000 15000 15000 15000
STICKS
TOTAL
45000 45000 45000 45000 45000 45000
SALES

SALES
JULY AGT SEPT OCT NOV DEC
FORECAST
MINION
30000 30000 30000 30000 30000 30000
CUPCAKES
MINION
15000 15000 15000 15000 15000 15000
STICKS
TOTAL
45000 45000 45000 45000 45000 45000
SALES

As a starting point of our company , unit of sales of minion cupcake and minion
sticks remain fix within first year because our company want to have a constant
and regular customers before we proceed to an increament in production,

Over production at the beginning of the business may cause the company to face
the problem of losing the profit because the customer base is not stable yet.

7.6.2 UNIT PRICES (RM)

SALES
JAN FEB MAR APR MAY JUNE
FORECAST

MINION
1.50 1.50 1.50 1.50 1.50 1.50
CUPCAKES
 MINION
1.00 1.00 1.00 1.00 1.00 1.00
STICKS

SALES
JULY AGT SEPT OCT NOV DEC
FORECAST
MINION
CUPCAKE 1.50 1.50 1.50 1.50 1.50 1.50
S
MINION
1.00 1.00 1.00 1.00 1.00 1.00
STICKS

The price for minion cupcake and minion stick remain constant for the first year
time because our company wish to establish a good reputation form the
company, that is the low price and good quality.

An increament in sold price frequently will cause the customers to lose confident
on the products and this will affect our sales forecast for the next few years.

7.6.3 TOTAL SALES ( RM )

SALES
JAN FEB MAR APR MAY JUNE
FORECAST
MINION
45000 45000 45000 45000 45000 45000
CUPCAKES
 MINION
15000 15000 15000 15000 15000 15000
STICKS
TOTAL
60000 60000 60000 60000 60000 60000
SALES

SALES
JULT AGT SEPT OCT NOV DEC
FORECAST
MINION
CUPCAKE 45000 45000 45000 45000 45000 45000
S
MINION
15000 15000 15000 15000 15000 15000
STICKS
TOTAL
60000 60000 60000 60000 60000 60000
SALES

If the unit of products are solded according to the forecast,then the total sales
will be remain the same for the first year.

7.7 Marketing Strategy & Budgets

Marketing strategy by definition is all the approaches that aimed to achieve the target
sales and increase the prestige of our company in Malaysia.According to the planning
of Marketing Manager,it includes product,discount and promotion strategy.

7.7.1 Product Strategy

 A) Offered products

The main products that will be sold in our company includes :

 Minion cupcake
 Minion stick

The packages available :

 Lovely Couple Set ( 2 set of minion cupcake with valentine theme )

 Minion Super Series ( Full set of all character of minion cupcake )
 Tea Time Special Offer ( 4 minion cupcakes with 2 minion sticks )

B) Serving of Products

Products will be served by using suitable and nice-looking plastic.

Different decoration of plastic will be utilized for different packages. All of
our plastics is well-decorated by marketing manager and promoter.Unique and
creative shapes of plastics used will surely impress customers and this will
become one of the attractions of our shop.

7.7.2 Discount Strategy

A) Quantity Discount

Quantity discounts are often offered for large orders from the
customers where the cost-per-unit to sell or deliver a product declines
as the quantity increases.
 For example,when a customer orders 50 to 100 piece of minion
cupcakes,the price per unit of cupcakes will be declined to RM 1.20 per
piece since price per unit of cupcake is RM 1.50.For the minion sticks,if
the order received is more than 100 sticks,then the price per sticks will be
declined to RM 0.80.

Such method can encourage customer to purchase in large quantity which

can help to increase our sales and profits.

B) Seasonal discount

Seasonal discounts are lower-than-normal prices offered as incentive

to buyers to buy more during the product's slow season.The discount
offered vary according to type of products and the financial state.This
in turn allow our company to balance cash flow and meet production
demands.

7.7.3 Promotion Strategy

Promotion means the activities that publicisee the advantages of a product and induce
potential customers to purchase it. It also makes customers to realise the existence or
our products.

A) Products advertisement
 Our company implement the products advaetisement through different
electronic mass media such as radio, television and internet. This allows
customer range from children to sedentary workers to realise about our
products through Facebook and also television.Printed media including
newspaper, magazine and articles also play an important part in our
product advertisement too. Creative ways of presenting the advertisement
are better in attracting people to look into our products.

B) Sales promotion

The promotion that offered by our company is “ Minion Happy Hours ”.

During the fixed period of time that is 3 to 5pm during Wednesday, every
customer will enjoy 2 free minion sticks with the purchase of RM 10 and
above.Such promotion is crucial because it helps to maintain the customer
base during the period of few customer during 3-5 pm.

C) Sponsorship for charity projects

Sponsorship for charity projects is emphasized greatly in our company to

help the people in need. Helping the people in need will help to improve
and strengthen our brand in the market. The sponsorship most likely can
help to boost our brand no matter in newspaper or on television.

MARKETING BUDGET
Particulars Fixed Monthl Others Total
Assets y
Fixed Assets
Delivery Van 40,000 40,000
Working Capital
Promotions & Advertising 1,000 1,000
Sales Commission 1,000 1,000
Pre-Operations & Other Expenditure
Motor Vehicle Insurance & Road Tax 2,000 2,000
Other Pre-Operations Expenditure 500 500
Total 40,000 2,000 2,500 44,500

7.8 Marketing Action Plan

Company: Cuppacakes (M) Sdn. Bhd.

Product : Assorted flavours of Cupcakes and minion sticks

Services : Direct selling in bakery shop and also delivery

Months Activities Deadline Staff

 Responsible
January ~ Update the promotion with new 31.01.2013 Marketing
images of at manager
least three types of new item’s
decoration each
month.

OBJ : Using vast variety of

promotion method
and decoration to increase sales of
cupcake.
February ~ Update the promotion advertisement 15.02.2013 Operation
~ Make the preparation for the 28.02.2013 Manager
Formland trade Operation
show Manager

OBJ : Training for the production

of high quality cupcake to attract
customers attention to increase
order from customer.
March ~ Participation at the Formland trade 15.03.2013 ALL
show in
PWTC Kuala Lumpur. 18.03.2013 Marketing
~ Contact all the suppliers met at manager
Formland.
OBJ : To arrange a meeting with 23.03.2013
the suppliers. 30.03.2013 Financial
~ Submit business card to the new manager
suppliers Promoter
~ Update the promotion
advertisement
April ~ Send articles about our new 02.04.2013 Marketing
"Minion Sticks" manager
series to weekly newspapers in
Metro and
 News Straits Time and to monthly
magazine 20.04.2013
in Kek&Pastri and also and other Human Resource
lifestyle manager
magazines
~ Update the promotion and distribute
the first
pamplet about cupcake new
promotion.
OBJ : Promote cupcakes into
national market
May ~ Fix a date with the photographer for 15.05.2013 Marketing
taking manager
catalogue photos before the end of 17.05.2013
May. Promoter
~ Update the promotion advertisement
June ~ Examine the concept for corporate 04.06.2013 Marketing
gifts ~ Focus on 06.06.2013 manager
businesses in the local area. Baker
OBJ : Maintain the quality of 14.06.2013 Human Resource
cupcakes manager
~ Prepare the reservations in the mid- 18.06.2013
year Promoter
school break season.
~ Distibute the second pamplet about
cupcake
new promotion
~ Update the promotion
advertisement
July ~ Update the promotion advertisement 22.07.2013 Promoter
August ~ Send articles about our new 11.08.2013 Human Resource
"Minion manager
Sticks” series to weekly newspapers 30.08.2013 Promoter
~ Update the promotion
advertisement
September ~ Conducting an annual meeting with 08.09.2013 General Manager
all the
shareholder
OBJ : Analyse the effectiveness of 30.09.2013 Promoter
pamplets
~ Update the promotion
advertisement
October ~ Send out an updated pamplet about 06.10.2013 Human Resource
festive manager
season promotion 24.10.2013 Promoter
~ Update the promotion
advertisement
November ~ Improve and make preparations for 30.11.2013 Baker
next 13.11.2013 Promoter
year's catalogue.
~ Update the promotion
advertisement
December ~ Prepare for a year-end -sale 31.12.2013 ALL
promotion
exclusive for wedding ceremony, 15.12 Marketing
birthday manager
party, annual dinner etc 12.12 Promoter
~ Improve and make preparations for
next
year's catalogue.
~ Update the promotion
advertisement
8.0 Operational Plan

8.1 Discussion of Product Design

Our company wish to open a bakery shop and sell the cupcakes by
using the concept of a cartoon. The cartoon used is minion which is still
popular in the minds of many.The main foods that we are going to sell or
produce are minion cupcake and minion stick.

We decide to sell cupcake with theme of minion because minion is

very famous and popular nowsaday.Not only child love it but also adult.After
conducting some survey in the market,we found that minion cupcake have
high selling potential and it is also an opportunity for us to monopolise the
market with the products.The main customer for us is children and therefore
our bakery shop will design in theme of cartoon too in order to attract the
attention of children.

To made this business more successful, we had made a research on

how to design our minion cupcakes. Our product have a very interesting
concepts that is theme of cartoon and we combine it with natural colour and
marshmallow that can attract many teenagers and adults to our bakery shop
.We plan to dessign minion on a marshmallow and attach it with a cupcake or
just sell it three in one stick.

Minion cupcake is produced by combining various minion character

with cupcake with unique flavour.The minion used is actually a white
marshmallow which is further decorate by our marketing manager.
Thus,minion of different can be produced and this can help to diversify our
product.Besides,the minion stick is a co-product which also used minion
character as a raw materials and then put into a stick.Minion stick is believed
to become the most popular snacks for children.
8.2 Production process design and Control system

Production Process Details

Planning and design ~ The minion cupcake and minion stick going to sell is
design by our designer and issued by our designer
team.
Research and ~ Possibility whether the product being produced can
experiment fulfill the requirement is being tested
~ The food produced is sent for testing to ensure safety
of the food
Development stage ~ Appraisal of materials needed,its quantities and the
details of the products patterns。
Materials preparation ~ Raw materials needed is prepared by assistant baker
~ Include the cupcake,marshmallow and accessories
Production and testing ~ Samples are being produced and let the customer to try
to get some feedbacks
~ Further innovation and correction on the products
before the massive production
Primary Process ~ Real production process
~ Marshmallow coated with edible food dye and further
decorated by head baker
Secondary Process ~ White candies are attached on marshmallow as
minion’s eyes
~ Chocolate cream is used as decoration and attachment
of minion to cupcake.
~ Some marshmallow is used to produce minion sticks
base on the same method of preparation.
Final process ~ Quality checking of products by head baker
~ packaging of minion cupcakes and sticks by general
workers.
8.3 Input needs and Specification

8.3.1 Inputs needed

Raw materials  Ingredients to produce a cupcake likes flour,eggs,butter

 Marshmallow
 Chocolate cream, Blue and yellow dye
 Sour white candies
 Sticks and decorative plastic
Machine  Oven
 Work table
 Refrigerator
Worker  Head and assistant baker
 General worker

8.3.2 Other Specifications

A) Suppliers

 Gastroglobe GMBH
Business type : Bakery machine
Location : Malaysia
Year establish :1980

 Dev Bhakti Marketing

Business type : Bakery Equipment(chocolate,food dye)
Location : India
Year establish : 1998

 Cangnan Longgang California Packaging Factory

Business type :Cake holder, cake pad,folding boxes.
Location :China (mainland)
Year establish :2001
B) Technology (software)
 In order to made this product more convenient and available to
customer, we open a website for our bakery shop. Customers can place orders
on our website for custom cakes and other products, and we are notified by
email. With one click, customers can order online. How easy is that?

Besides we will also introduce a point of sale software. It can't provide

any insight into profit, inventory or best selling products. A computerized cash
register, on the other hand, can instantly tell us how much money you have left
in your cash drawer, and how much of that money is profit. It can also tell you
how many of a specific product were sold today, and how many you have left
on the shelf. It can even warn you to order more items when stocks get low.By
this two software,we can manage our shop better.

C) Trading Hours

Weekday 08:00 to 17:00

Saturday 08:00 to 20:00
Sunday 08:00 to 20:00
Public Holidays 10:00 to 14:00

D) Communication Channel
Tel : 03 77258930
Fax : 03 77289931
E-mail : cuppacakes@yahoo.com
Facebook : Cuppacakes Lovers

E) Payment Accepted
Cash
Credit card
Debit card
Cheque

8.4 Process flow chart

8.4.1 Production of minion cupcake

Unique-flavoured mini cupcakes make and produce by

the head and assistant baker.

Cylinder-shaped marshmallows is coated with edible foos

dye(blue and yellow) to produce a minion character.are
placed on top of the cupcakes.

Together with the cupcake which act as a base,the minion

character is placed on the top of cupcake.

White-coloured candies are attached on the

marshmallows as the minion's eyes

Chocolate cream is used to complete the decoration of

the minion cupcake.

8.4.2 Production of minion stick

 Cylinder-shaped marshmallows coated with
edible foos dye(blue and yellow) to form a
minion character.

White-coloured candies are attached on the

marshmallows as the minion's eyes.

Chocolate cream is used to complete the

decoration on the marshmallows.

The minion marshmallows are then sold in a

combination of three on a satay stick.

8.5 Details calculation of Direct Cost,Overhead Cost and Cost per unit of
Production
8.5.1 Direct Cost ( per month )

Item Cost (RM)

Raw materials 25000
Packaging 2000
Labour 6600
Total 33600

8.5.2 Overhead Cost ( per month )

Expenses Cost (RM)

- Shop Rental 3,500
- Shop Utilities 1,000
- Shop Maintenance 1,000

Total 5,500

8.5.3 Cost per unit production ( RM )

ITEMS COST PER UNIT SOLD PRICE PROFIT PER

PRODUCTIION UNIT
PRODUCTION
Minion cupcake RM0.70 RM1.50 RM0.80
Minions stick RM0.50 RM1.00 RM0.50

8.6 Project Implementation Budget for the Assets

Particulars Fixed Monthly Others Total
Assets
Fixed Assets
Machine & Equipment 13,300 13,300
Shop Renovation 5,000 5,000
Shop Furniture 3,600 3,600
Working Capital
Salaries, EPF & SOCSO 6,600 6,600
Raw Materials and Packaging 27,000 27,000
Shop Rent 3,500 3,500
Shop Utilities 1,000 1,000
Shop Maintenance 1,000 1,000
Pre-Operations & Other Expenditure
Other Pre-Operations Expenditure 500 500
Total 21,900 39,100 500 61,500

9.0 Financial Plan

9.1 Project Implementation Cost

Item RM
Fixed Assets Costs
Total Administration Fixed Assets Costs 10,000
Total Marketing Fixed Assets Costs 40,000
Total Operations Fixed Assets Costs 21,900
Working Capital (1 month)
Administration 9,700
Marketing 2,000
Operations 39,100
Total Other Expenses
Total Other Administration Expenses 5,500
Total Other Marketing Expenses 2,500
Total Other Operations Expenses 500
Contingencies (10%) 13,120
Total Project Costs 144,320

9.2 Source of funds

Item RM Percentage
(%)
Shareholders’ Funds
WOON JIA JIE 10,000 6.93
AW YEONG ZHI SHENG 8,000 5.54
LEE SHI MIN 7,000 4.85
NUR ASMAA BINTI ABU BAKAR 7,000 4.85
NOR AZLIN BT MD.BASRI 3,000 2.08
LAVANIYA A/P GUNASEGAR 3,000 2.08
CHOO HUI JUN 3,000 2.08
IVY NGAU MEI YEE 3,000 2.08
HANEEDA HAZWANI BT HUMAIDI 3,000 2.08
NURNAJIHAH BT MOHAMAD FAUZY 3,000 2.08
External Sources of Funds
Bank loan 94,320 65.35
Total Source of Financing 144,320 100.00

9.3 Cash Flow

1st 2nd 3rd 4th Total

Quarter Quarter Quarter Quarter
CASH INFLOW
Capital (Cash) 50,000 50,000
Borrowings (Cash) 94,320 94,320
Cash Sales 180,000 180,000 180,000 180,000 720,000
TOTAL CASH INFLOW 324,320 180,000 180,000 180,000 864,320
CASH OUTFLOW
Administrative Expenditure
Salaries, EPF & SOCSO 27,000 27,000 27,000 27,000 108,000
Office Supplies 900 900 900 900 3,600
Office Utilities 600 600 600 600 2,400
Office Maintenance 600 600 600 600 2,400
Marketing Expenditure
Promotions & Advertising 3,000 3,000 3,000 3,000 12,000
Sales Commission 3,000 3,000 3,000 3,000 12,000
Operations Expenditure
Salaries, EPF & SOCSO 19,800 19,800 19,800 19,800 79,200
Raw Materials and Packaging 81,000 81,000 81,000 81,000 324,000
Shop Rent 10,500 10,500 10,500 10,500 42,000
Shop Utilities 3,000 3,000 3,000 3,000 12,000
Shop Maintenance 3,000 3,000 3,000 3,000 12,000
Pre-Operations
Business Registration & Licences 4,000 4,000
Insurance 1,000 1,000
Motor Vehicle Insurance & Road 2,000 2,000
Tax
Other Pre-Operations Expenditure 1,500 1,500
Fixed Assets
Purchase of Fixed Assets - Others 71,900 71,900
Borrowings Repayment
Principal 4,720 4,720 4,720 4,720 18,880
Interest 1,180 1,180 1,180 1,180 4,720
TOTAL CASH OUTFLOW 238,700 158,300 158,300 158,300 713,600
CASH SURPLUS 85,620 21,700 21,700 21,700 150,720
BEGINNING CASH BALANCE 0 85,620 107,320 129,020 0
ENDING CASH BALANCE 85,620 107,320 129,020 150,720 150,720
9.4 Balance Sheet Projection

End-of-year Balance Sheet

RM RM
ASSETS
Fixed Assets
Office Equipment 5,000
Office Renovation 2,000
Office Furniture 3,000
Delivery Van 40,000
Machine & Equipment 13,300
Shop Renovation 5,000
Shop Furniture 3,600
71,900
Less: Depreciation of Fixed Assets 7,190
64,710
Current Assets
Stock of Finished Goods 2,000
Cash Balance 150,720
152,720
TOTAL ASSETS 217,430

Owner’s Equity
Capital 50,000
Profit 91,990
141,990
Long Term Liabilities
Loan Balance 75,440
TOTAL EQUITY & LIABILITIES 217,430
9.5 Income Statement ( Profit and Loss )

End-of-year Income Statement

RM RM
Sales 720,000
Less: Cost of Sales
Production Cost 469,200
less: Ending Stock of Finished Goods 2,000
467,200
Gross Profit 252,800
Less: Expenditure
Administrative Expenditure 116,400
Marketing Expenditure 24,000
Business Registration & Licences 4,000
Insurance 1,000
Motor Vehicle Insurance & Road Tax 2,000
Other Pre-Operations Expenditure 1,500
Interest on Loan 4,720
Depreciation of Fixed Assets 7,190
Total Expenditure 160,810
Net Profit 91,990
9.6 Overall Financial Performance

Item RM Remarks
1. Capital 50,000 The contributions from each
shareholder range from
RM3,000 to RM10,000.
2. Sales 720,000 An average monthly sales of
RM60,000 has been recorded.
3. Fixed costs 20,410
4. Variable costs 607,600
5. Beginning cash balance 0
6. Ending cash balance 346,900
7. Profit 91,990 On average, each shareholder
earned a profit of RM 9,199
from this business in a year.
8. Total assets 217,430
9. Break-even Point 628,010
10. Return on Investment 14.6% This is calculated using the
formula: Return on investment
= (Net profit/Total cost) x
100%
10.0 Conclusion

Our company is a leading domestic manufacturer of cupcakes of different

flavours and varieties. The business plan contains all the information in detail about
the company. We are a strong asset in terms of human resources and special cupcakes
that enhance our confidence to succeed in this industry.

The company is new in this sector since we are going to establish it this
coming December. The owner or shareholders of the company consists of ten persons
with experience in various fields. The purpose of these business plans was prepared is
to implement the proposed project of our company. This project involves the
establishment of a bakery shop that mainly produces cupcakes, especialy our minion
cupcakes and minion sticks. The success of this project could bring profit to the
companies more than doubled. Thus, the funding is carried out to start this vital
project.

We have analyzed and explained the company’s market in detail. Effective

marketing strategies allow our company to achieve annual sales forecast. Our
company is operating smoothly and regularly. All machinery and equipment are
either buy locally or imported to ensure the production of cupcakes of high quality. In
addition, the quality of the cupcakes during the manufacturing process was closely
guarded until the product is packaged and delivered to the customer.

The organization for our company is also well organized and functional. The
four main departments, namely Finance, Production, Human Resources, and
Marketing is headed by a manager each.The list of employees and office structure are
also described in detail.

Financial aspects of the company was also presented clearly, which includes
each and every company’s assets, marketing budget, administration budget, operation
budget, project implementation cost, financing source, cash flow statement, income
statement, balance sheet and overall financial performance. It is important to show
how is our company's performance so far.

Our company has a high possibility to succeed because of our organizational

and marketing strategies. This success can be maintained by the effort of each
shareholders and the support of all parties so that we are highly competent not only in
local enterprises but also international companies.