Strategic Business Plan

Topic: EzEat Online meals and groceries

delivery

TABLE OF CONTENTS
3600 words (9 parts roughly each is 400 words)...................................................3
1.0

Executive summary................................................................................3

1.1 objectives................................................................................................ 4
1.2 mission................................................................................................... 4
2.0

company summary.................................................................................5

2.1 company ownership................................................................................... 5

2.2 company location...................................................................................... 5
2.3 start-up summary...................................................................................... 6
3.0

Service................................................................................................. 7

4.0

market analysis summary........................................................................8

4.1 market segmentation..................................................................................8

4.2 Target Market Segment Strategy.....................................................9
4.3 Service Business Analysis...............................................................9
5.0

risk management................................................................................. 10

6.0

strategy & implementation summary.......................................................11

6.1 Competitive Edge............................................................................... 12
6.2 Sales Strategy.................................................................................... 13
6.3 Milestones......................................................................................... 14

7.0

management summary..........................................................................14

8.0

financial plan...................................................................................... 16

9.0

exit strategy........................................................................................ 20

9.1 Company Growth is in parallel with market share............................................20

9.2 Company Growth as moderate with lukewarm response from the public................20
9.3 Company fails to grow and market does not respond to our services.....................20
10.0

references........................................................................................... 21

11.0

appendix............................................................................................ 22

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Executive summary (200 words)

Objectives
Mission
Company summary (400 words)
Service (400 words)
Market analysis (400 words) ( Eileen )
Risk management (400 words) (Accidents of our messengers, goods not
delivered, quality of food problem, suppliers not able to supply us the
food, customers with wrong address, payment problems[credit cards and
debit cards])
Strategy and implementation (1000 words) ( )
Management summary (200 words)
Financial plan (400 words) (Robin : include the sources for finances)
Exit strategy (200 words)

1.0 EXECUTIVE SUMMARY

EzEat is a motorcycle and van based delivery service in Puchong, Kuala Lumpur,
Malaysia catering office employees, restaurants, fast food centers, grocery stores and
hyper marts. EzEat can transport dry food items, lunch boxes, and dry groceries to
office workers who are too busy or reluctant to go out of their office for lunch. Office
employees, smart phone users, will be the primary group of customers which will be
our only target group; other non-office customers will be served as well, but will not
be targeted.
EzEat will offer reliable delivery service for our customers to ease their burden, traffic
jam and travelling time, to get to the food. Since our company is the first mover in
this industry, we expect to capture the major market share when we introduce our
service to the public. Our business strategy of matching locations to customer needs
gives us a differentiated service to our customers. Our projected profitability will
come at the end of year one of operation and it is estimated to reach critical mass by
year three.

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1.1 OBJECTIVES
The objectives for the first three years of operation include:

To create a service-based company whose primary goal is to provide reliable

delivery service.
To service areas in Puchong, Cyberjaya, Petaling Jaya and Subang Jaya.
Increase the numbers of participating customers and suppliers by 20% per year
through reliable services.
Build a sustainable delivery service company within 5 years of operation.

1.2 MISSION
EzEats mission is to provide office workers a convenient way for them to get
to their basic need, food. Service reliability will be the focus of our company. This
would give our customers the confidence to stay on and gain new customers as we
grow.

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2.0 COMPANY SUMMARY

The company will be EzEat Sdn. Bhd., a wholly owned entity of Eileen Ting and
Robin Mowe. It will be incorporated as a private limited company.

2.1 COMPANY OWNERSHIP

The company ownership will be as follows:
i)
ii)

49% share owned by Eileen Ting

51% share owned by Robin Mowe

2.2 COMPANY LOCATION

Our company will be located in Puchong.

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Link for the realtor for this property:

http://www.iproperty.com.my/propertylisting/1418543/bandar_puteri,_puchong_Shop
-Office_ForRent?utm_source=Mitula&utm_medium=CPC&utm_campaign=Mitula

2.3 START-UP SUMMARY

EzEat Sdn. Bhd., will incur the following start-up costs:

Office furniture including, refer to financial section for detailed list

5 computer systems with standard features

Broadband Internet connection.

Three phone lines.

2 Printers with copier capability.

Purchase fee for company domain name.

Development of a website that allows delivery orders to be placed online and

to provide details of our company, services and location availability.
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Smart phone apps, iOS apps and Android Apps, to be developed by a software
company, outsourced.

Major software is to be developed in house (forms the companys crucial

competitive advantage point).

Legal fees for the incorporation of the business.

Brochures.

Any cellular service provider is sufficient, but all messengers will be given
hands free kit.

Messenger bags with company logo.

1 Van vehicles for bulk purchases and delivery.

2.4 Head count

2 Managers
1 administrative personnel
1 accounting personnel
5 messenger
1 system engineer
2 customer support/helpdesk operator

3.0 SERVICE
EzEat Sdn. Bhd.,will provide grocery, breakfast or lunchbox delivery service that
targets office workers, who uses smart phones. Our service is used to provide office
workers with food or groceries when they dont want to be faced with traffic or too
busy to go out for a meal, or they are too busy to go shopping.
Our main target group are the office workers who are smart phone users and
those who are internet users. We will accept orders from other customers as well, such

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as home makers. Our service goal will be to serve the customer as soon as possible
and a guarantee of delivery of the items ordered.
Another segment of customers that we might service would be the restaurants,
grocery stores and fast food operators. These suppliers might have their own
customers and wishes to have their products delivered to their customers. This is
where EzEats delivery service can help them. In trying to achieve service excellence
and a firm foothold onto our market share, EzEat would continuously find ways of
shortening the time it takes to deliver the items, meals or food to our customers.

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4.0 MARKET ANALYSIS SUMMARY

EzEat will target primarily office workers. We identify this segment as attractive
because office workers in the cities are in need for reliable food delivery service. This
helps to eliminate the hassle of going out for meals during lunch break especially if
office locations are situated in traffic jams areas. EzEat also provides meals during
other times of the day so that the service is always readily available.
In addition, EzEat will provide this service to other non-office workers such as
restaurants, food courts, and hypermarkets. Other than meals, this group of customers
has the option of buying dry grocery from us. All our customers are able to place their
orders through smart/feature phones and EzEats website.

4.1 MARKET SEGMENTATION

EzEat will provide service to two distinct groups. The primary target group of
customers is office workers. In cities, office workers are constantly facing difficulties
in preparing their own meals. They are plagued with busy work schedules, traffic jams
and rising petrol cost. The introduction of our meal delivery service will satisfy their
needs of having their meals without going through all the hassles. It is time and cost
saving as well. EzEats delivery system locates nearest suppliers to a customers
location. Then, the ordered meal will be obtained from supplier and sent to the
customers by our messengers. Our competitive advantage will be our ability to track
suitable suppliers and reliability of the delivery process.
The second customer group is non-office workers. This could include other businesses
that require grocery delivery within our covered location range.

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EzEat Market Analysis

Non-office workers; 30%

Office workers; 70%

Market Analysis

Potential
Customers
Officeworkers
Non-office
workers
Total

Year 1

Year 2

Year 3

Year 4

Year 5

30%

400

520

676

879

1143

15%

30

35

40

46

53

29%

430

555

716

925

1196

Growth

4.2 TARGET MARKET SEGMENT STRATEGY

EzEat will target its market through two channels that are popular and easy to access.
The first is by using smart/feature phones. Potential customers can download EzEats
application to their smart/feature phones, and use it to place orders, make payments,
provide feedback, and others. Secondly, customers can also visit the companys
website to use our service.
To maximize our customer base on the website and mobile application, we will use
the free service Google Analytics. This tool will help us to analyse web traffic and
optimize user landing rate onto our webpage. Apart from that, it is able to track
mobile application usage activities.

4.3 S ERVICE BUSINESS ANALYSIS

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The two listings below are taken from Google Adwords which shows the number of
monthly searches for related searches on food delivery services using mobile devices
and desktop/laptop devices. Global monthly searches refer to search perform by
anywhere around the world. Local monthly searches refer to search perform in
Malaysia. From the analysis, there is a market presence for online food/grocery
delivery. The competition level is in the medium range. We are unable to identify
significant domestic players in the providing online service of grocery delivery.

(Keyword search using mobile devices 2012)

(Keyword search using desktop/laptop devices 2012)

In Malaysia, there were 17.7 million internet users for year 2011 with penetration rate
of 62%. The internet user community is expected to increase by 25 million by year
2015 (ADMA 2012). As for mobile usage, Malaysia recorded 34 million users in 2011
which represented a penetration rate of 119%. In a recent June 2012 smart phone
ownership study released by Nielsen, 59% Malaysian has the intention of upgrading
their mobile phones in next six months where 79% of them plan to buy a smart phone
(Nielsen 2012). These justify our intention of providing our service through two
channels: website and mobile devices.

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5.0 RISK MANAGEMENT

Below are five potential business risks that we have identified for EzEat.
First risk is loss of data and system failure. Because our tracking system and database
are used to build the foundation of EzEats competitive advantage, the risk of losing
them becomes our top priority in the assessment of managing risks. To overcome this,
we will back up our system three times. The office will have a back-up server. Each of
the two founders will perform important back-up to their own devices three times a
week. We will also have a dedicated system engineer to perform system maintenance
and he/she will provide weekly reporting of system condition to the founders.
Second risk is delivery problem of goods. Inability to provide quality delivery to our
customers will affect our companys goal to increase customer base in the future.
Goods not delivered on time and missing goods during delivery are some of the
foreseen incidents which will challenge EzEats outbound logistics. To overcome, we
will hire messengers who are knowledgeable with the covered delivery locations. The
messengers will be required to attend a meeting once weekly to discuss on delivery
issues as well as improvement methods. Our system is programmed to check
customers delivery addresses to prevent sending of the goods to wrong locations.
Third risk is quality of suppliers. It directly affects quality of food delivered to
customers and the ability of suppliers to provide inventory to EzEat on time. To
manage this risk, we identify suppliers into two categories, suppliers who supply dry
groceries and suppliers who supply lunch/meal boxes. For dry grocery, we will order
in bulks from suppliers. Based on the availability of the dry groceries, we update our
item listing daily. For lunch/meal boxes, as we will only place order through suppliers
after receiving customers bookings, each area will have at least three suppliers. This
is to prevent unavailability of food from only one supplier. Our company is also
committed to have a meeting with all our suppliers once every month.
Fourth risk is accidents of messengers and company vehicle. Because our messengers
are using motorcycles to deliver the goods, the possibility of involving in accidents
cannot be overlooked. To mitigate the risk, a time schedule will be developed so that
messengers will not be overworked. Messengers are required to service their
motorcycles within a time period determine by the company. Timely maintenance will
be carried out on the companys van and the founders pickup vehicle. The company
will come up with a guideline on claiming insurance in case of unforeseen accidents.
Fifth risk is website or mobile application problems. This can include payment
problem, delay response of web pages, broken links, and application crash. EzEat will
hire two customer support officers to take calls or reply emails from customers. These
two customer support officers will work closely with the system engineer if necessary.

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As our mobile application is outsourced, we will teleconference with the outsourcing

company application engineer(s) once weekly for discussion and improvement.

6.0 STRATEGY & IMPLEMENTATION SUMMARY

EzEats business strategy is to provide reliable delivery of meals and dry groceries to
our customers. Our competitive advantage comes from our past work experience and
our skills in I.T. and process engineering. We will develop a unique matching system
which enables EzEat to serve its customers reliably and quickly.
Puchong has been selected as EzEats headquarters because it is one of the most
rapidly expanding residential and commercial areas in Selangor. It is strategically
located between Kuala Lumpur and Cyberjaya.

6.1 Competitive Edge

Primary Activities
Inbound logistics: Customer registration, supplier registration (suppliers can include
restaurants, hypermarkets, food-stalls, supermarkets)
Operations: Link customers & suppliers (we act as intermediary using website), user
preference tracking, calculating customer distance from nearest supplier. Our
companys in-house developed software enables us to gain economies of scale
through correct matching of customers and location.
Proper scheduling and continuous process improvement will enable us to serve our
customers faster.
Outbound logistics: Delivery to customers, fee collection
Marketing & sales: Online marketing, social networking, personal approach
Service: Customer/supplier feedbacks

With the primary activities of the value chain identified and linked we are now able to
identify clearly our companys competitive advantage. The following is a list of
competitive advantage:

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Reliable delivery service

Fast delivery service

Support Activities
General administration: Registration of company, financial planning, registration of
company vehicles, renting an office
HR management: Recruiting & retaining employees, employee benefits, hiring of
delivery people, qualified web developers
Technology: Developing & maintaining company website which will be the portal for
customers to book order and suppliers to check orders. Developing software to track
user preference and calculation of customer-supplier distance for efficient delivery
Procurement: Selection & evaluation of suppliers, purchasing computers, office
equipments, company vehicles

Figure X. Porters Value Chain.

6.2 Sales Strategy

The first priority for EzEat is to establish itself as a market leader by focusing on a
differentiated service provided. Brochures and leaflets handouts will be distributed
during the weekend in surrounding shopping malls, such as Mid Valley and The
Curve. In addition, we will target places where most office workers go for lunch
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break. These may include food courts, cafeteria, and restaurants nearby industrial
areas.
During the initial startup of the second month we will train all of our staff to do minor
sales work, in order to reach more customers. Each personnel will be given a short
training by Eileen to approach and ask potential customers register as one of our
customers. These personnel will also give a short introduction on our services and the
area that we serve. We will do this for a period of 2 weeks. After this phase we will
have our pilot delivery service by calling up our customers before lunch and offer to
deliver meals or groceries to the location of their choosing.

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6.3 Milestones

Hire and train staff (Eileen)

Apply for financing
Recruitment/registration of customers & suppliers
Identify contractor for mobile app development
Wrap of activities in month one

Full operation
Aggressive customer acquisition

January 2013

Pilot run of the deliveries

Complete all activities of month two

December 2012

November 2012

Development of matching system, database, I.T related activities

(Eileen)
Set up office (Robin) including company registration
Development of website

October 2012

7.0 MANAGEMENT SUMMARY

Eileen Ting is a graduate in Computer Technology. Currently she is pursuing her
Masters of Management in Swinburne Sarawak University of Technology. She
worked in Intel Corporation in Penang. She also worked as a system analyst in the
banking industry. Her experience will be an invaluable contribution to EzEat, as she
will oversee crucial development of our key software. The development of this
software must be controlled by her because it is with this software that EzEat derives
its competitive advantage. Her passion is dealing with people. She is skilled in
learning new trades.
Eileen will be in charge of the companys Information Technology matters, software
development, web page content, and outsourcing software development.

Robin Mowe is a graduate of Swinburne Sarawak University of Technology in

Robotic and Mechatronics. He worked in the manufacturing industries holding
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positions such as, Process Lead, Manufacturing Engineer and Systems Engineer. His
experience in the industry has given him the skills necessary to plan and improve on
EzEats business process. This will give EzEat the competitive advantage that it needs
to strengthen its foothold on the market.
Robin will be in charge of the day to day operations of the company, scheduling of
pickups and delivery for the company.

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8.0 FINANCIAL PLAN

This section outlines our strategy to secure the capital needed for our
operations. We will try to obtain our capital through government lead
institution. The following are the list of institutions that we plan to
approach for our business capital:

1. Graduate Entrepreneurs Fund

Participating financial institutions / Implementing Ministry / Agency:
Bank Perusahaan Kecil & Sederhana Malaysia Berhad (SME Bank)
Maximum financing rate
Maximum tenure
Minimum financing
:
Maximum financing
:
cost

:
4% per annum
:
7 years
RM20,000
RM250,000 or up to 100% of the project

Eligibility criteria
:
Graduate holds majority equity in a company registered with the
Companies Commission of Malaysia under the Companies Act
1965
Has a diploma/degree/doctorate qualification
Must be below 40 years old and has successfully completed
training programmes, placement and practical training under the
Ministry of Entrepreneur and Co-operative Development (MECD)
or its agencies
Purpose of financing :
Working capital
Financing fixed assets or both
Eligible sector / Types of financing:
Transport
Tourism
Selected services
Franchise business
Special programme under MECD
Link: http://www.smeinfo.com.my/index.php/en/governmentprogrammes/financial-assistance/funding-a-business/governmentfundings/bank-perusahaan-kecil-a-sederhana-berhad-sme-bank

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2. MARA Business Financing Scheme

Participating financial institutions / Implementing Ministry / Agency:
Majlis Amanah Rakyat (MARA)

Maximum financing rate :

Maximum tenure
:
scheme
Maximum financing
scheme

4% per annum
Up to 15 years based on the financing
:

RM500,000 based on the financing

Eligibility criteria:
Malay or Bumiputera aged 18 years old and above
Obtained the necessary licence/permit/approval letter from
authorities to operate the business
Provide owned capital at least 10% of the project's cost
Full-time in the running of the business
Provide adequate collaterals
Required to attend entrepreneurial course if business experience is
less than 6 months
Purpose of financing
Assets acquisition and working capital
Eligible sector / Types of financing
All sectors
Type

of assistance / Form of financing

General financing scheme
Business financing for Professional (RM250,000)
Financing for transportation business (RM250,000)
Business financing for ex-trainee under MARA Programmes
(RM250,000)

Contract financing
Financing for General/Fixed Contract (RM250,000)
Financing for Sub-contractor under umbrella concept (RM250,000RM500,000)
Repeat financing for excellent contractors (RM250,000-RM500,000)
Special financing for manufacturing and Franchise
Manufacturing, services, tourism services (RM500,000)

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Link: http://www.smeinfo.com.my/index.php/en/governmentprogrammes/financial-assistance/funding-a-business/governmentfundings/majlis-amanah-rakyat-mara-

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3. Soft Loan for SMEs

Participating financial institutions / Implementing Ministry / Agency:
Malaysian Industrial Development Finance Berhad (MIDF)
Maximum financing rate:
2% per annum
Maximum tenure:
Land and Building : up to 15 years including grace period of up to 2
years;
IT Equipment : Up to 4 years including grace period of up to 1 year;
Revolving Working Capital - Subject to annual review
Machinery and Equipment : Up to 6 years including grace period of
up to 1 year
Term Working Capital : Up to 3 1/2 years including grace period of
up to 6 months
Minimum financing:

RM50,000

Maximum financing:
Project Financing : RM 1.5 million
Fixed Assets Financing : RM 1 million
Working Capital Financing : RM 1 million

Eligibility criteria:
SMEs incorporated under the Companies Act 1965 or Registration of
Business Ordinance 1956;
At least 60% equity held by Malaysians;
Subsidiaries of public listed companies (not exceeding 20%
shareholding); and
Possess valid premises license

Purpose of financing:
Project, fixed asset and working capital financing

Eligible sector / Types of financing:

Manufacturing
Manufacturing Rrelated Services
Services (excluding insurance and financial services)
Eligible expenses
Project, fixed assets and working capital financing;
Costs incured for initial store renovation and upgrade of store
display for retail trade
Working capital for companies with confirmed contract from GLCs,
MNCs, and the government including its agencies
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Link:
http://www.smeinfo.com.my/index.php/en/governmentprogrammes/financial-assistance/funding-a-business/governmentfundings/perbadanan-nasional-berhad-pns

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Among all this government agencies, we will seek loan from Malaysian
Industrial Development Finance Berhad (MIDF), our first priority. The
reason for this is the attractive 2% annual interest rate imposed.

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9.0 EXIT STRATEGY

9.1 COMPANY GROWTH IS IN PARALLEL WITH MARKET SHARE
In three years time, EzEat is expected to grow in market share. This growth will
allow us to establish other offices around Kuala Lumpur. Our companys growth will
require us to recruit more and more personnel; therefore it will become a priority for
us to establish quickly our own Human Resource department. Our companys IT
infrastructure needs to be upgraded to cater for the different locations of our offices.
This success would also mean that we would be able to pay off our obligations/loans
to the government agency.

9.2 COMPANY GROWTH AS MODERATE WITH LUKEWARM RESPONSE FROM THE PUBLIC
In this event the management team must pay more attention in the business processes.
Tight management of funds is needed to ensure that the company does not slide into
the non-profitable area. At the same time the company must pay all of its
obligations/loans to the respective government bodies.

9.3 COMPANY FAILS TO GROW AND MARKET DOES NOT RESPOND TO OUR SERVICES
We need to close down the operations. All assets are to be sold off to pay off any
remaining debts. We could also find a company to acquire our business.

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10.0 REFERENCES
Google AdWords 2012, Google, viewed 31 August 2012,
<https://adwords.google.com/o/Targeting/Explorer?__c=1000000000&__u=
1000000000&__o=kt&ideaRequestType=KEYWORD_IDEAS>.
Smartphone Insights Study 2012, Nielsen, viewed 31 August 2012,
<http://jp.en.nielsen.com/site/documents/SPImr-jun12_FINAL.pdf>.
Asia Pacific Digital Marketing Yearbook 2012, ADMA, viewed 31 August 2012,
<http://asiadigitalmarketingyearbook.com/download/>.
One Stop SME Resources 2012, SME Info, viewed 31 August 2012,
<http://www.smeinfo.com.my/index.php/en/government-programmes/financialassistance/funding-a-business/government-fundings/bank-perusahaan-kecil-asederhana-berhad-sme-bank>.

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11.0 APPENDIX

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