Business Plan

Group Assignment Page 1 of 36
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Contents
Executive Summary ........................................................................................................ 2
Company Background ..................................................................................................... 3
Definition of Vision ................................................................................................................ 6
Definition Mission .................................................................................................................. 6
SWOT Analysis .............................................................................................................. 7
Strengths ................................................................................................................................ 7
Weaknesses ............................................................................................................................ 8
Opportunities .......................................................................................................................... 9
Threats ..................................................................................................................................10
Marketing Plan .............................................................................................................. 12
Market Positioning ................................................................................................................12
Market segmentation: ............................................................................................................13
Marketing strategy .................................................................................................................13
4P Analysis ...........................................................................................................................14
Intellectual Property (IP) ............................................................................................... 20
Growth Strategy ............................................................................................................ 20
Financial Projection ...................................................................................................... 21
Funding Plan ................................................................................................................. 21
Financial Analysis ......................................................................................................... 21
Summary....................................................................................................................... 34
Reference ...................................................................................................................... 36


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Executive Summary

This project was undertaken to look into and evaluate the case of Fancy Fashion
Sdn Bhd (FF-Maple). The aim was to see what, if anything could be done to boost
performance and profitability levels of the company.
Analysis was used to identify the companys individual strengths, weaknesses,
opportunities and threats. A marketing plan was then devised to remedy the various
weaknesses, mitigate threats and to take advantages of opportunities and strengths. To
finalize things a financial plan was drawn up to assess the viability of the proposed
solution.
The result shows that Maples lackluster performance is consequence of the
publics general lack of knowledge of their products and their very limited product range.
Additionally production levels are insufficient and have resulted in wasted potential.
The prognosis is that the company needs to invest a certain amount of money to
revamp their marketing program. This will be essential to help boost performance to the
desired levels and thwart oncoming threats. If the financial figures are anything to go by
it would seem that the potential for improvement is vast and that the ROI should be good.
It is highly recommended that Maple:
y Advertize heavily via different promoting brand name and developing brand image
y Use the internet to sell products and provide information to customers
y Utilize multiple distribution channels to sell there products.
y Use uncompromising quality of raw materials
y Use lean production methods and increase output to minimize waste potential and
maximize output.


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Company Background
Basically the company background which the maple Concept stores are privately
owned by fancy fashions Sdn.Bhd. Their first store at Jalan Sultan in 1996 and they
achieve good customer respond and their started to opening other stores mostly in Kuala
Lumpur and Seremban. FF-Maple concept store offers four main product lines that
include ladies and mens fashion begs through 13 retail stores. This company main
product lines include fashion clothes and bags through 5 Maple concept shops and
Maple-z.com Online Store.
The services include free repair bags zipper, booking product and free delivery
merchandise to increases the customers satisfaction. In Maples world, you will find the
concept, design and product range to be unique and different from others in town. It is
Maples aim to continue to provide fresh and exciting new looks for the unique individual.
The uniqueness and the product range different concept. FF-Maple is a more on the
youthfully lifestyle which more on trendy and fashionable products (accessories and
apparels) that bring freshness and vibrancy to life. The founders and the management
team started Maple at very young age and are still young. From the development it proves
that they are innovative, entrepreneurial, passionate and always young at heart of the
company. Through the experiences, the maple continues to enterprising management
team has designed all the maple products and store layouts to create the best shopping
atmosphere to allow the customers to feel the pleasure of indulging in young fashion.
Other than that Maple generation is forever young, fun and passionate to explore the new
and limitless world of fashion. For instance the maple changes its colour in different
season, the maple represents the evolution and dynamism of todays youth .Everyone has
the maple in the heart, in the mood, in his/her zone and life. Besides that, the company
has their own philosophy whereby
Green for freshness and spirit,
Red for passion and dynamism, and
Yellow for individuality.
And thats exactly the soul of FF-Maple!
Cited from; http://maple-z.com/store/pages.php?pageid=2

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Organization Chart

Company Structure

This company has 6 main departments: production department, marketing department,
human resource management department, accounting department, IT department and
customer service department. There are 6 managers and 70 staffs in the whole company,
distributed in different department. FF-Maple Founders and management team started
Maple at a very young age and are still young. Obviously, they are innovative,
entrepreneurial, passionate and always young at heart. With many years of experiences,
their enterprising management team has designed all Maple products and store layouts to
create the best shopping atmosphere to allow the customers to feel the pleasure of
indulging in young fashion.

FF-Maple
Production
Department
Maple
Concept
Store
Markting
Department
HR
Management
Department
IT
Department
Accounting
Department
Maple
Concept
Store
Maple-z
Online
Store
Maple-z
Online
Store
Managem
ent
Other Training Inspection Product Design
Customer
Service
Department

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Business Department
There are totally 6 main departments in FF-Maple:

Production department
The Production department generally handles design, product and inspection new
production. This department has 30 staffs.

Marketing department
For the marketing department in FF-Maple, there are 23 staffs among of them there are
20 staffs in Maple Concept store, another 3 staffs in charge trading in Maple-z.com
online store. They cooperate to do the research and observation on the current market. It
is very important to let the marketer know the trend, when the marketers know the trend
it can help FF-Maple improve the sales of the company.

Customer Service department
The Customer Service department generally handles customers feedback, repair bags
zipper, booking product and free delivery merchandise. This department has 6 staffs.

Human Resource Management department
The HR Management department generally handles manger and training staffs.

Accounting department
The accounting department is responsible for keeping tab of dealings regarding the
financial issues.

IT department
The IT department is generally handles the company hardware and software problem, it
mainly perform the hardware maintenance and update software that ensure the daily
operation smoothly.


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Definition of Vision
The vision serves as the framework for a company roadmap and guides every aspect of
our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth
Citedfrom;http://www.thecoca-
colacompany.com/ourcompany/mission_vision_values.html

FF-Maple has already built a vision: To be the leader and innovator in the fashion
accessories and apparels for the new and young generation!

Maple vision above state as wants to be leader in clothing as well to famous among the
youths .Their wants to suits personality for the teenagers and upcoming generation.

Definition Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.

Citedfrom;http://www.thecoca-
colacompany.com/ourcompany/mission_vision_values.html
FF-Maple mission It is your zone, a world of freedom, uniqueness, and most of all,
personality for teenagers and youth!

Maple uniqueness designs the product following current youth trend. The world
of freedom here defines as whereby the maple company has very precise target to achieve
being the best clothing for the youth.

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SWOT Analysis
FF-Maple is a small company in what is a heavily competitive garment industry.
A viable product solution is dependent on accurate analysis amongst other things of
Intellectual Property, Market Needs, Customer Value Proposition (CVP) and
Competitiveness. These and many other factors may be analyzed using the SWOT
analysis.

SWOT is an acronym standing for Strength, Weakness, Opportunities and
Threats. A planning method invented by Albert Humphrey at Stanford Research Institute,
its main purpose is to evaluate the fore-mentioned factors in an organization, i.e., an
organizations strengths, weaknesses, opportunities and threats. According to Dr. Sanjay S.
Mehta of Sam Houston State University, one of the uses of SWOT analysis is matching
and converting. Matching joins strengths to opportunities thereby affording an
organization competitive advantage. Converting is the process of applying change
strategies to convert weaknesses or threats into strengths or opportunities. If conversion is
not possible then the next best level is mitigation to avoid or minimize weakness and
threats. (Mehta, S. (2000) Marketing Strategy). It is envisaged that information garnered
from SWOT analysis would enable FF-Maple to be able to effectively devise strategies
that would permit it to make decisions that would fortify its position in the industry and
ward off its competition.

Strengths
FF-Maple sources its clothes from China. China has the one of the lowest costs of
production in the world. Sometimes the total cost of production in China can be cheaper
than the cost of raw materials alone in another competing country (The China Price,
2004)! FF-Maple should, for the most part, be able to produce goods at prices lower than
its Malaysian counterparts. The main factors of production, land, labor and capital are all
cheaper in china than they are here in Malaysia.
An added advantage Maple has is that it owns its own factories. For other
companies that source their products from China the supplier might raise the price of

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goods at anytime. Maple however benefits from backward integration. It owns the
factories that produce the clothes they sell. The cost price is not defined by an
independent garment factory but by how efficiently Maple can manufacture its clothes. It
also means that they are quite easily able to make their own unique designs that will
enable better them to differentiate themselves from competition.
Though unknown, Maple is a registered brand name. That means customers will,
after education (via advertizing), be able to identify Maple as being a unique product as
compared to a no name brand design. Now is an opportune moment for it to establish its
brand name. EuroMonitor International (2009) has noted that Malaysians are just starting
to become more aware of the latest fashions and the latest brands in the fashion, apparel
and footwear consequence of globalization via the media and internet access. If Maple
can establish itself as a source for the latest fashions it will gain a strong foothold in
Malaysian and neighboring markets. The fact that the Malaysian government is currently
running the 1Malaysia campaign could further work in its favor spurring purchases on the
basis of patriotic fervor. 2009-2013 is expected to show positive growth in the Malaysian
apparel and shoe industry. By establishing itself in the Malaysian market Maple can be
part of this growth.
Weaknesses
The Maple range of products is very highly limited. Currently the only products
they sell are womens shirts, belts and bags. For them to successfully compete within
their chosen and very limited age demographic (20-35 years old females) a more
comprehensive, more structured line-up is required. Not doing so would alienate them
from the very demographic that they currently aspire to appeal to. They cannot focus on a
single item or two the way an ultra elite niche manufacturer can. Maple intends to be
successful boutique. For that to be possible a complete line-up of clothes is necessary.
Maple size range is very limited. Most female clothes retailers offer their
customers the opportunity to buy clothes in a variety of different sizes. Sizes start from
X-small(0-4), small(4-6), medium(6-9), large(10-14), X-large, 1X, 2X, 3X. The sizes
have a series of sub-sizes (0-24) within them to allow women to find the perfect fit.
Without accurate, standardized sizes it is very difficult for women to guess their

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appropriate size short of actually trying on the dress. This lack of information can be
very discouraging to the buyer. It reflects poorly on the standard of the company and
product it offers.
Maple is not a known brand name and the small time boutique industry is very
price sensitive. Maples margins will invariably tend to get squeezed as it vies with many
small-time retailers for customers. Unlike haute couture it does not have the luxury of
charging for its brand name. Markups must be kept to a minimum. An aggressive
penetration-pricing policy is a must.
Maples E-commerce segment is very weak. Maples website is not at all user-
friendly. The information provided is at best limited and not assuring to the customer.
This is especially worrying in light that Maple intends to cater to the 20-35 year old
professional bracket. In a study titled E-Commerce: A Study on Online Shopping in
Malaysia, Hishamuddin bin Ismail et al noted that 67.7% of all online shoppers came
from the professional bracket and that 46.6% of all online shoppers are of the 21-30 age
group! These are very serious statistics that strongly indicate the extreme implications of
good e-commerce on the level of Maples business. Dr Amin Khan, Senior General
Manager of Network and Revenue Management at Malaysia Airlines noted a 30% rise in
sales on improving the Malaysian Air website. He claims, Improved website and
booking engine performance are key business benefits we are quickly realizing, and
this is enhancing our competitive advantage." In another study carried out by IDC (2009)
titled Measuring the rate of return on investment of Web Application Acceleration
Managed Services we see average company ROI rates averaging as high as 580%
Internet will open to Maple a massive floodgate in sales that never existed before.
Opportunities
Maple has its own factories. Increasing production level and utilizing lean
production methods may net the company Economies of Scale and help increase lower
cost of production resulting in greater profitability. Maple needs to follow a highly
aggressive penetration pricing policy to maximize inroads into market share.
Maple, though a brand name is not a recognized one. Advertizing can greatly
increase consumer awareness and demand for the product. This in turn will result in

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significantly higher sales figures. It will help Maple build the most important thing for all
brands and companies, i.e. Brand Loyalty.
Online Shopping provides the greatest growth potential to Maple. With Malaysia
set to experience a 24% increase in online shopping next year this is a very promising as
yet untapped market.
Online Shopping offers Maple the potential to sell its products internationally far
beyond its natural borders thus providing grounds for phenomenal increase in sales.
These increased sales will help nurture further factory production levels and Economies
of scale. Additional benefits include brand name awareness and brand loyalty.
Maple should provide a more extended range of products. This will increase its
appeal amongst clientele and increase the number of customers that will view Maple as a
viable place for shopping. Also very importantly the lack of demand of a certain product
will be cushioned by the increased demand of another.
It may introduce a system akin to IKEAs that enables customers to give in
feedback then selecting good ideas for production. This will give Maple a greater level of
creative input as well as give it a reputation for catering to the tastes of its customers.
This is a win-win scenario for both customer and company.
Threats
The nature of its industry means that there is a very real threat of new entrants
coming into the market. The capital investment required to start a clothing retail business
is very small meaning that the barriers to entry are next to non-existent. All that one
requires is some clothes and the will to sell them. Maple faces a constant and uphill
struggle in the face of an increasing number of ever more enterprising retailers trying to
push their products to the same market segment.
Maple has its own factories in China that produce its products. This means that
anomalies of international trade apply to it even though it is only a small operating
concern. This means that costs and margins cannot be stable over long periods of time.
The cost of manufacture is dependent on factors in China whereas the selling price is
dependent on Malaysian market conditions. This is a double edged sword type of
predicament. While theoretically this means that it can for the most part place higher

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markup on its goods, practically there is a risk (albeit a very small one) that fluctuations
in currencies and changes in the market conditions in either China or Malaysia could
result in Maple manufacturing or selling its goods at a loss.
The threat of substitutes is not so serious. Substitutes are segments that cater to
the same population demographic as Maple by providing alternatives to Maples products.
The threat of substitutes is limited to the Arabic style Thawb for women. The market for
this is very small and the people that wear them in Malaysia are few. Additionally the
Thawb is generally stitched to order not ready made meaning that realistically the impact
on Maple should be minimal.
The clothing industry is very highly competitive. Retailers are all over the place.
Competition therefore is cut throat with product differentiation being the order of the day.
The ability to successfully differentiate itself from competition at competitive prices is
what sets failure apart from survival in this industry (EnroMonitor International, 2009).
. Given the recent economic downturn there has been a massive overall decrease
in consumer buying power and spending:
The recent economic recession which is affecting countries globally has also
impacted Malaysia in a way where consumers are now getting thriftier in their daily
spending and consumption. In view of this, the overall clothing and footwear industry in
Malaysia is expected to show a fall in performance overall with only a slight increase in
certain categories apparel which is deemed a necessity
(EuroMonitorInternational, 2009)
Even for the salaried managers who are relatively unaffected by the crunch the
uncertainty of what might possibly follow has led to them tightening purse strings. Given
such conditions we can expect to see Maple clientele less ready to buy and spending less
money per purchase then was the case prior to the downturn.


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Marketing Plan

According to Philip Kotler In today's very competitive marketplace a strategy that
insures a consistent approach to offering your product or service in a way that will
outsell the competition is critical. However, in concert with defining the marketing
strategy you must also have a well defined methodology for the day to day process of
implementing it. It is of little value to have a strategy if you lack either the resources or
the expertise to implement it. We have several suggestions for the FF-Maple Company
which we feel would be greatly conducive to business quality/levels. The current
strategies in use by the company are highly inefficient and leave much to be desired. The
company can achieve much greater heights if it were to implement certain choice
strategies.

Market Positioning
Positioning after the organization has selected its target market The next stage is to
decide how it wants to position itself within that chosen segment. Positioning refers to
how organisations want their consumers to see their product
cited from; http://learnmarketing.net/positioning.htm.
FF-Maple intends to establish itself as a brand name to be reckoned with. Of crucial
importance to achieving this goal is Product differentiation. Success comes with boldness;
if FF-Maple is to become a leading entity in the market bold moves are required. Market
leading strategy must include product differentiation. Maple must lead the other
competitors in price changes, new product introduction, distribution coverage and
promotional intensity. Maple competitors John Master, Depi and Forest seem to have
effectively exploited IT technology to advertise and provide information about their
products. Other competitors like Irene Lim have found that the net can be used to further
their Mail Order business. What we glean from the competition is that the internet forms
a useful source of information as well and an effective sales distribution channel. From
marketing to selling the internet is a powerful tool. FF-maple has unfortunately failed to
capture on the potential of this tool. FF-Maple must develop themselves to be better, not

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equal to the competition. A superior marketing strategy this will put Maple Company at a
competitive advantage.

Market segmentation:

The definition of Market Segmentation is that involves dividing a larger market in
subsets of consumers who have common needs and applications for the goods and
services offered in the market
Cited from: http://www.wisegeek.com/what-is-market-segmentation.htm.
Maple can identify by a number of different demographics, depending on the
purposes behind identifying the groups. Marketing campaigns are often designed and
implemented based on this type of customer segmentation. FF-Maple company's main
customers are 20-35 year-old working women. Predominantly white collar professionals,
they not only have the desire to purchase but also the purchasing power to follow through
with their impulse. Being as Malaysia is a perpetually hot/tropical country clothes must
be designed with such consideration in mind. Also crucially importance Malaysia is
home to different ethnicities with varying tastes in fashion. Success is dependent on
Maples ability to satisfy a culturally diverse clientele in their pursuit of fashion. A
complete spectrum of clothes is needed to cater to different occasions, from formal
office/work attire to casual jeans and T-shirts. And from day-time slacks and pants to
elegant evening gowns.

Marketing strategy

According to Baker and Michael The Strategic Marketing Plan Audit 2008,``Marketing
strategy is a method of focusing an organization's energies and resources on a course of
action which can lead to increased sales and dominance of a targeted market niche. A
marketing strategy combines product development, promotion, distribution, pricing,
relationship management and other elements. It identifies the firm's marketing goals, and
explains how they will be achieved, ideally within a stated timeframe. Marketing strategy

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determines the choice of target market segments, positioning, marketing mix, and
allocation of resources.
4P Analysis

Product:
y Quality
Some idea of the importance of quality can be garnered from the Spring 2001 Textile
consumer report, Although other attributes, such as price and brand, drive more
purchases of apparel, spending on apparel based on quality grew faster from 1999 to
2000 than did spending based on any other attribute
Citedfrom:http://www.cottoninc.com/TextileConsumer/TextileConsumerVolume21/
?Pg=3

The majority of consumers tend to agree that higher-priced clothes are not
necessarily of higher quality, longer lasting, or more stylish than lower-priced
clothes. For example, 64% percent of consumers maintain that lower-priced clothes
look as good as higher-priced alternatives, and 64% say that higher price does not
mean better quality. But, paradoxically, consumers tend to agree that in clothing,
you get what you pay for.
Citedfrom:http://www.cottoninc.com/TextileConsumer/TextileConsumerVolume21/
?Pg=3
In todays world more consumers are willing to buy from a source that offers better
quality. FF-Maple need to improve their product quality, which means sourcing
higher quality raw materials (e.g. Japanese cotton) as well as upgrading workmanship
levels (better stitch quality). Maple Product should undergo continuous quality and
design improvement upgrade cycles. Climbing to the top requires that Maple will
have to build itself a name that is synonymous with enduring quality
Stringent quality control measures should be utilized to ensure production quality.
Attaining ISO standard certification or some other certification can go a long way in
boosting consumer confidence. Maple must constantly be on the lookout for

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improved raw materials and superior control methods. These are the basis of
furthering and maintaining competitive advantage.

y Matching Pair
If this Company still want to a foothold in the market either in current or in future, it
need its own feature, a series of tops and shirts, dresses and jerseys bags that work in
unison complimenting and completing each other. The concept can be extended to all
the products that maple produces. Essentially whatever specific product Maple
produces there should be another product from another line designed to be used in
tandem with it. This encourages further sales as people try to buy additional products
to complete a purchase.

y More selection/type of women clothes
The key to catering to women is variety. Shopping for women is very different as
compared to men. Women are infinitely more selective and picky on what they
consider acceptable. Choices, colors and selections are important. Matching scarves
to go with dresses or accessories to match the clothes can make shopping irresistible
to a woman. If Maple can provide a variety of products to satisfy this uniquely female
psyche they can make huge inroads into establishing themselves is a force to be
reckoned with.

y Clothes Configurator
A scheme similar in concept to IKEA furniture designer, customers are allowed
to submit designs to Maple via website or mail. Winning designs all produced with the
designer picture and name printed in the company monthly periodical beside the dress
that she/he designs. This will encourage creativity and provide Maple with the best of
ideas for free! Additionally customers will be more attracted to a company that
potentially offers its clientele a chance to make their own customized and their own
shot at fame. Based on the case studies of from; http://www.agenda-

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clothing.com/case_studies.html if customer has option to make choice and made-up
their own design and the best of design will be published in upcoming magazine. This
indirectly will motivate other customer to go forward and make more design by their
own.

y Alternation
Maples are selling produced product that means the customer cannot alter the
clothes for themselves. According to Stores.org, $28 billion a year of merchandise is
returned to stores because of poor fit. This is because each person is a unique entity
with unique measurements. Often all that is required is minor nips and tucks to ensure
that the dress fit as it should. This will go a long way in establishing satisfied clientele.

y More Sizes
Currently Maple provides a very limited selection of sizes. A more
comprehensive range of sizes (0-24 based size system) should be offered to ensure
that the clientele are satisfactorily catered to .According to website
http://www.softsurroundings.com/Clothing/.Women got problem in selecting their
appropriate size; Maple size range is very limited. Most female clothes retailers offer
their customers the opportunity to buy clothes in a variety of different sizes. Maple
should make studies of variety size according to Malaysia womens so that their do
not have the difficulties in finding the size. Moreover if the company does not
provide size for the women it reflects poorly on the standard of the company and
products it offers.

Price
y Low Price
The company needs is an unknown entity in a cut-throat competition market.
Couple this with the lower average salaries in Malaysia and an aggressive penetration
policy is needed for Maple to establish itself. Profitability needs to be attained via

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minimized margins and maximized sales volume. Profitability will also follow
consequence of Economies of Scale. The fashion sector has been hit by cheap by
cheap imported raw materials and labour power sourced from other Asian countries
such as China and Vietnam.
www.themalaysianinsider.com/.../malaysia/39516-malaysia-66th-most-
attractive-country-globally-third-best-in-asean.
This means that Maples factories in China are only an advantage if Maple
produces its products at minimum wastage and maximum efficiency.
Other than, clothing and footwear growth in Malaysia is only to see a slight
increase due to recession. Studies show that recent economic recession which
affecting countries globally have also impacted Malaysia in a way where consumers
are now getting thriftier in their daily spending and consumption. This will ultimately
affect the available market share pushing competition for new customers to greater
heights.
Cited from; http://www.euromonitor.com/Clothing_and_Footwear_in_Malaysia

Place:
y Outlet
Maples product outlets provide the first impression to the customer. Maple
stores should have similar design throughout to ensure they are readily identified as
Maple stores. This is a very powerful tool used by all major retailers to establish
brand identity. Furthermore the product in outlet itself allows customer to exposure
themselves and give them to feel and touch what they prefer. Example a customer
wants to check whether they coat or blaze is suit with the dress, so they can come and
try on the fitting room.
y Mail order
The mail order is send to the customer on the website or catalog. Customer can
see the catalog and make an order. This mail order is also done by Avon whereby the
catalog is send to their house.

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Other example like Herbal life American company whereby they grow bigger as
many mail order they received by customer. Maple can use this method to grow as big as
other major companies.

y Internet
The internet is fast becoming a staple medium for shopping. It offers a medium to
reach across to customers well outside of Malaysia and huge untapped potential.
Production cost and currency differences will make Maples products very attractive
to shoppers from foreign countries. Based on the E-Commerce: A Study on Online
Shopping in Malaysia, Hishamuddin bin Ismail
study carried out by IDC (2009) titled Measuring the rate of return on investment
of Web Application Acceleration Managed Services we see average company ROI
rates averaging as high as 580%.Other than that, in 2000 whereby the Malaysia
Bernama TV during Prime Minister they introduce One house One computer. These
give opportunities to everyone have their own computer and internet though the
reasonable scheme from the government to all Malaysia citizen.

Promotion:
y Magazine and Radio advertisement.
Brand Awareness can be achieved at relatively economic rates using promotions via
local radio, printed magazines, newspaper adverts or billboards. Firstly examples
such for magazine like Wanita Magazine whereby the women clothing of Malaysia
people which discover many types and choices for the customer. This company has
received good respond from the customer because it is also advertise in TV3 every
week. Other examples Kamdar Malaysia clothing textile also famous which they
promote and attract customer via radio whenever the festive season, though other
clothing company like BUTIK they have billboards in lrt(aliran ringan)train station
Titiwangsa whereby passenger can notice new design and idea of the model at
billboards.


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y Print the car
The company car can be effectively used as a mobile billboard. These billboards is
really famous among these days, as can see nowadays in major south or north highways
they do have 50meter long billboard which many cars and vehicle pass by every day
example like diamond water company which is not that famous when it launch, now its
already established in people mind as the best local water cleaning system, though Maple
company can advertise more on billboards which make people attention on it.

y Free gift
Customers making big purchases can be rewarded with USBs and other personalized
gifts. These gifts serve both as an incentive to customers as well as a promotional tool
attracting the user of the gift to Maples products. Furthermore the customers satisfy
with the gift which being rewarded to them and this will indirectly increase more
sales.

y Leaflet
Maple should publish a monthly periodical to inform people of their latest offerings,
newest designs and other latest going-on in the company. The benefit of the leaflet
whereby it is very easy going simple and eye-catching, It will attract most people who
is always rush those who don't want to read the contain. Example leaflet can easily
distribute bus stop, schools, and housing residents.

y Internet website
A good Website is an effective educational, advertizing and selling tool all rolled into
one. Customer local and International can be informed and catered to via a good
website. Other than by viewing on the internet customer have some idea how is the
design it is. Besides that, customer also more option to check on the price which suit
their budget.


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y Discounts
Maple Anniversary day (amongst others) is a good chance to offer product
discount to customer and improve brand identity. Discounts can also help move slow
moving products. Example the Store in Malaysia, their do have the Store card for
member, first time membership is free. Customer will entitle to get more benefit like
lucky draw if purchase more than RM150, discount purchase with purchase and there
have also member day special whereby customer can buy product at very cheap price.
Other than there are benefit which the customer and the company can get more closer
and advantage of repeat sales. Maple can introduce Maple Card which also follows
the same concept whereby they offer many dress with reasonable price so that
customer can stick with one particular brand.
Intellectual Property (IP)

It is important that the company takes all the measures necessary to safeguard the
investment made. Among the methods used to make sure that Maple idea do not get
stolen is through the use of copyrights, trademark, and patents.
Growth Strategy
Based on the Ansoff Matrix (Pearce & Robinson, 2002), product development strategy
has been identified as the companys grand strategy for Knot is catering to an existing
market but about to create new products and services. Below is how the Ansoff Matrix
looks Like.Maple Company will continue develop new product.

(Pearce & Robinson, 2002)

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Financial Projection

In the first year of operation we are targeting a Gross Operation Profit of
RM 1,252,417 (see appendix). Meanwhile the loan is expected to be paid off (RM500,
000) during the first year. The first year will yield lower levels of profit as compared to
subsequent years. However, the inflows are expected to steadily climb in the next 4 years.
Net profit before tax in Profit & Loss account should reach RM 1,252,417 (see appendix)
which will go on to accumulate to RM 1,778,090 by the end of the 5
th
year. The Break-
even point will be breached once sales revenue hit RM 1,809,785.

Funding Plan
Based on the Marketing Strategy plan it was established that further development
required the need of investment. The results of which would afford them competitive
advantage over their competitors. Treading a fine line between the need for extra finance
and the need to repay the money loaned in the least possible time Maples new financial
plan stipulates that it take a half million ringgit loan from the bank. The key thinking here
is that if they can repay the loan within two year, it does accrue interest. Failing to clear
their debt within the two year period would mean paying interest at a rate of 3% per
anum. IT technology is expected to be a significant driving force behind the companys
efforts to streamline itself. The company will therefore purchase a workstation cum
server to handle the website. They are also expected to advertise on the radio white Hot
FM & Fly FM. Investment will also be required to procure gift items to reward loyal
customer to make large purchases. For example a customer could be handed a 2GB or
4GB USB with the logo of the company/brand name paint on it.

Financial Analysis
Capital Requirement
The total cost of the proposed business is projected at RM 2,594,687The owner will
utilize the loan to invest RM 489,087.

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Equipment RM 1,250,000

Supplies RM 429,800

Working Capital RM 326,400

Other assets RM 88,487

Loan (RM 500,000) RM 2094687
TOTAL RM 2594687

A detailed breakdown of the capital requirement is will provided in the break-even
section.

Structure of Financing
The hundred percent of the RM2, 094,687 cost comes from the previous financial year.
The organization decided takes the loan RM500, 000 from bank to enhance the business
scopes and to increase profit for next five financial years. Maple is confident of the
inherent profitability potential of the intended venture and feels loan repayment is assured.

The Details Price

Equipment

1.Property,furniture and equipment 150,000

2.Leasehold land and rental
prepayments
850,000

3.Forctory in china 250,000 1,250,000
supplies

1.Purchases 35,800

2.Material 394,000 429,800
Working Capital

1.Financial administration 24,000

2.Insurance 38,400

3.Office salaries 264,000 326,400
Other Assets 88487 88487
Loan 500,000 500,000
Total Capitalization Requirement

2,594,687

Financial Forecasts
The annualized Forecasted Statements of Forecasted Balance Sheets and Statements of
Cash Flow for the five years of operations are presented on the following pages of this
business plan. Explanatory notes to the Financial Forecasts directly follow this section.

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The FF-Maple 5 Years Cash Flow is a best guess estimate/forecast of what is to come.
The 4 Year estimate is based on figures calculated on the basis of first year data.
Annualized Forecasted Statements of Cash Flows demonstrate that the cash balance of
the business will increase in 4 years time from RM4, 101,000 to RM 5,035,750 by the
end of the 5 year. This figure increases by 122.793% and the net increase on sales is
22.793%.

Figure 1 FF-Maple 5 Year Cash Flow


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Figure 2 Trend of the 5 year cash balance
The two figures above clearly demonstrate that the financial forecast of the FF-Maple for
the 4 years is a steadily increasing one. So the primary reason for the company to take the
loan on the first year was in a large extent to help Maple maintain optimum working
capital and liquidity while taking the requisite measure required developing a competitive
advantage in the industry.
The Balance Sheets show the impact of five years operations on the financial condition of
the business. The value of assets will increase from RM 2,594,687 on the beginning of
the first financial year in this business plan to RM3, 155,500 five years later. During the
same time period, the balance of loan from bank will decrease from
RM500, 000 to RM 0 in the first two years; on the other hand, the total liabilities also
decrease by 30.7%.at the end of the five years.

Figure 3 Trend of the total liabilities
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1 2 3 4 5
TOTAL LIABILITES(RM)
TOTAL
LIABILITES(RM)

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Break-even Analysis
The formula for the calculating a break-even volume is:
BE= VC+ FC
Computations for the break-even sales volume for the FF-Maple Company are listed
below:
Variable Costs
% of Sales (RM
3832427)
Fixed Costs Amount
a. Cost of Sales(RM
558982)
14.60% a. Financial administration 24000
b. Variable expenses
(RM 786500)
20.5% b. Insurance 38400

c. Office salaries 264000

d. Rent expenses 849960
Total 35%

1176360

The break-even sales equation is:
BES= VC+FC

BSE= 35.1% of the sales +RM 1176360

BSE= 0.35 S+1176360

0.65S= 1,176,360

BSE= 1,809,785
47.2% of the projected RM 3832427
sales

This figure shows that RM 1809785 in sales to be made in the first year to cover all the
costs associated with operating the business.
On the other hand, the figure also shows the FF-Maples business venture regarded as
relatively low in risk in light of the RM1341349.5 (35%) margin identified by the break-
even analysis.

Financial Statement Analysis

Type of analysis Formula Year 1 Year 5
Net working capital Current assets -current
liabilities
431,617 1,589,800
Current Ratio
Cuiient Assets
Cuiient Liabilities

1.445 3.66

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Quick Ratio
uick Assets
Cuiient Liabilites

1.226 3.12
Debt Ratio
tal Bebt
tal Assets

0.195 0.158
Debt to Net Worth Ratio
tal Bebt
angible Net With

0.262 0.254
Net Sales to working capital ratio
Net Sales
Cuiient Assets Cuiient Liabilites

9.482 3.387
Net Sales to Total Assets Ratios
Net Sales
tal Assets

1.49 1.59
ROI

48.7% -

The Content of Statements
It is will show the any of the statement what have done in the financial projection. Firstly,
it is will start from each any relate the first years statement, it is the existing the details
inside the statement.
Secondly, it is the other four years data is showing next the first years.
FF-Maple Companys first year BALANCE SHEET

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Figure 4 Balance Sheets First Year (a)

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Figure 5 Balance Sheets First Year (b)


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FF-Maple Companys First Year Cash Flow

Figure 6 The first year cash flow
FF-Maple Companys First Year Profit & Loss

Figure 7 the first years profit & loss


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FF-Maple Companys Five Years Statement
The FF-Maple Companys Five Years Balance Sheet

Figure 8 the five years balance sheet (a)

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Figure 9 the five years balance sheet (b)


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The FF-Maple Companys Five Years Cash Flow

Figure 10 the five years cash flow


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The FF-Maple Companys Profit & Loss

Figure 11 the five years profit & loss


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Summary
The FF-Maple company main product line includes fashion clothes and bags through 5
maple concept shops and Maple-z.com website. Currently we feel that the true potential
of the companys factory and retail outlets have not yet been fully tapped meaning
inefficiencies and wasted potential abound. The company can, using its existing structure,
push out far more production through its retail outlets and the internet. The potential for
streamlining and economizing is massive.
The implications of its inefficiencies are two-fold. Firstly it affects the overall
selling price of the product; this is particularly crucial for a product that is to sell at
penetration pricings to break into the market. Additionally it affects the companys
profitability levels, limiting the amount of profit that the company can make on a given
amount of sale.
For Maple to maximize profits it needs to increase production levels therefore
attaining economies of scale. Under-utilization leads to inefficiencies. Maples factories
must churn out production at full capacity. This will also lend itself to the possibility of
employing just-in-time or lean production methods. The results of these methodologies
can be startling. At a recent event sponsored by the Delaware Valley Industrial Resource
Center, Mr. Delaney explained how his company used "lean" manufacturing practices to
become more competitive and to boost its output 90 percent since 2004 without adding
workers or space! Probes Unlimited standardized production methods in a way that
reduced the variety of setup operations needed to make its products, from several hundred
to five or six! According to Delaney this simplification helped cut the amount of work-
in-progress on the factory floor to $35,000 from an initial of $500,000.
Higher production levels are only feasible if the company sells in higher
quantities i.e. there should be a market to absorb the extra production. For this reason
Maple needs to invest heavily in advertizing to increase people awareness of their
products. The advertizing will be done via radio, monthly magazines billboards and, last
but most certainly not the least, the internet.


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Emphasizing that Maple is for the people by the people (Malaysians) might go a
long way in making their product attractive. Along these lines they might attract the input
of the buyer by asking them to provide suggestions. Anyone whose idea is approved has
his/her picture taken and placed in the monthly magazine with his/her creation. In return
she must give up rights to his/her design to Maple for reproduction and selling the
products.
Another method of increasing sales is by making proper utilization of the
available distribution channels. Maple needs to harness the potential of the internet for
increasing its sales both in Malaysia and outside of it. Mail Order sales are also a big way
of increasing sales distribution potential.
The case of efficient marketing and distribution can be seen in the Lands End
company. Originally a small Midwestern company it successfully harnessed the power of
good product, advertizing and effective use of distribution channels to fuel its rapid
growth. In 2002 Sears paid $1.9 Billion for the privilege of owning this small concern.


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Reference

1. AHASUNAL HAQUE et al, 2006 "Identifying Potentiality Online Sales In Malaysia:
A Study On Customer Relationships Online Shopping", Journal of Applied Business
Research, Volume 22, Number 4
2. ANONYMOUS, 2009. Malaysia Internet Usage and Telecommunication Reports. Available
from: http://www.internetworldstats.com/asia/my.htm [Accessed 27th December 2009]
3. CNN Money, 2004 Sears buys Lands End Available From
http://money.cnn.com/2002/05/13/news/deals/sears/index.htm [Accessed 10 January 2010]
4. ENGARDIO. P and Roberts. D, 2004, The China Price Special Report,
BusinessWeek, Available from
http://www.businessweek.com/magazine/content/04_49/b3911401.htm [Accessed 10
January 2010]
5. Euro Monitor International, 2009, Clothing and Footwear in Malaysia Available
from http://www.euromonitor.com/Clothing_and_Footwear_in_Malaysia [Accessed
10 January 2010]
6. HAROLD BRUBAKER. (20 December). This Economy: Local firms stand tough vs.
factories in China. McClatchy - Tribune Business News, Retrieved January 3, 2010,
from ABI/INFORM Dateline. (Document ID: 1924915531).
7. HISAMUDDIN BIN ISMAIL et al, 2006 ,E-Commerce: A Study on Online
Shopping in Malaysia
8. John L. Thompson. (1997), Strategic Management, 3
rd
edition, Thomson Press. UK
9. Melanie Posey, Randy Perry, October 2009, Measuring the return on investment on Web
Application Acceleration Managed Services IDC (taken from Akamai website)
10. Pearce, J. and Robinson, R (2005) Strategic Management, 9th Edition, New York:
McGraw-Hill.
11. Kotler, P. (1998) Marketing Management Analysis, Planning, Implementation, and
Control, 9th Edition, Englewood Cliffs: Prentice-Hall.
12. SANJAY S. Mehta, 2000, Marketing Stratergy Sam Houstan University
13. Tsiakkiros A (2002) "Strategic planning and education: The case of Cyprus", The
International Journal of Educational Management Bradford 2002

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