Principles of Management

BPMN 1013
Group E
By
Prof. Madya. Dr Hoe Chee Hee

GROUP ASSIGNMENT
ESTABLISHING JOLLY BAKERY
HOW WE PLAN, ORGANIZE , LEAD AND CONTROL

Prepared By:
Name Student ID Signature
Mohamad Ali bin Nasmohitheen 261340
Ain Syuhada binti Musa 261383
Wan Fathin Sahirah binti Wan 261399
Mohd Fauzi
Maizurah binti Abdullah 261400

Ng Yu Yin
261407

Muhamad Adip bin Zulkeflee 261408

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Acknowledgement

Alhamdulillah , We are most grateful to Allah SWT for the completion of this Business Plan
as of the requirement that need to be accomplished in the course work assessment for the
BPMN 1033.

Special thanks to our parents supporting us to complete this business plan. This
business plan has been prepared with the support and cooperation from many people.
Besides, not to be forgotten our lecturer, Prof. Madya Dr Hoe Chee Hee and his kindness in
helping us during the process of completion of this project work. He has given us a good
service by providing useful information to us. Without him, we would not be able to
complete this business plan.

Through these problems we manage to become more organized and mature in dealing with
problems that occur during our research . This business plan covers organization , marketing,
operation, financial , training plan and any other information needed by a new entrepreneur as
guide to start this business.

Lastly, to those who had involved and contributed directly and indirectly to this
business plan , we are very grateful to them for the effort and initiative that they have shown
in our project until we successfully completed our business plan . Thank you.

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 1.0 Executive Summary

Jolly Bakery Sdn .Bhd offers bakery products and services for customers , providing
varieties of cake, biscuits, muffins and bread that gives high satisfaction to consumer.

Our clients is customers identifying as middle and low class who want to consume
products with affordable prices. Besides, targeting UUM students, we also focus on busy
worker because we have delivery services of our home baked products to customers home.
Jolly Bakery offers fresh varieties of pastry which contain low sugar, low calories and most
importantly it is cheap so that everyone could be afford to buy.

In order to become the first choice of UUM student, Jolly Bakery has set up a
strategic planning to maintain the popularity among the student. Jolly Bakery expects to catch
the interest of their loyal customer based on their broad variety of pastry and biscuits. The
company not only aim to become the first choice of their customer but also target to build a
market position in Changlun.

The legal form of the business is partnership. It is own and managed by a group of six
partners. Jolly Bakery is a bakery shop that focus on provide various choices of pastry. The
name of the company is origin form the idea of a group of students whom wish to bring the
joy to others through bakery. The shop will located at Lot 48 , Varsity Mall, UUM Sintok,
Changlun, 06010, Kedah and expected to start the business at December in 2018 . Since the
company is running by a group of six students therefore the business time will start at
1.00p.m. till 7.00p.m and only open from Sunday till Thursday in a week. Hence it will
require their partners to take turn and cooperate over each other.

Jolly Bakery aim to promote their products at every cluster council college as a
foundation of building up the brand name. We will also provide a custom made service to our
customers as one of the special service that will beat others bakery shop. The loving cake and
bakery that Jolly Bakery will provide is sure to appeal to customers throughout Sintok and
Changlun area.

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2.0 Introduction

2.1 Name of business

Jolly Bakery is a bakery shop that focus on provide various choices of pastry. The name of
the company is origin form the idea of a group of students whom wish to bring the joy to
others through bakery.

2.2 Nature of business

Our main activity is baking any kind of pastry and cakes. We made butter cake , pound cake ,
genoise , sponge and other types of delicious cakes. All the product is using wheat flour and
gluten free flour to guarantee the quality of the product. Four batches of pastry and bakery
will be produced everyday to assure fresh baked products are always available.

2.3 Name of Partners

This business is founded by six partners. They are Maizurah binti Abdullah as a General
Manager, Ain Syuhada binti Musa as Administration Manager , Ng Yu Yin as a Marketing
Manager with his assistant Mohamad Ali bin Nasmohitheen , Wan Fathin Sahirah binti Wan
Fauzi as the operation manager and lastly the financial manager , Muhamad Adip bin
Zulkeflee.

2.4 Location of Business

The premise is located in Lot 48 , Varsity Mall, UUM Sintok, Changlun, 06010, Kedah.
Convenience is essential to us because we need to be close to our customer because we are
not trying to get people to travel far to reach us. The chosen place is as strategic place as
students can get a slices of cakes and a cup of tea to drink.

2.5 Date of Commencement

The most suitable time for us to introduce our Jolly Bakery to the public would be on the 2
June 2019. The reason is because for the 5 months starting from December to May , we need
to carefully to plan and construct our paperwork. This is to ensure that we have with better
preparation in facing the problems in future.
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2.6 Factors in selecting the proposed venture

We chose this business because there is an opportunity and potential to make profits in UUM.
Besides that, there is only a reason why we make up mind to choose this business and its
location. Firstly, through an observation we can conclude that UUM does not have a place
where students especially to sit and enjoy their cup of coffee. So that, this idea to build a
bakery is a great opportunity for us to be the only choice of living Our business would be the
first to introduce bakery and self service to customers home.

2.7 Future Prospects

Our objective is to be the top and first bakery shop in .In order to become the first choice of
UUM student, Jolly Bakery has set up a strategic planning to maintain the popularity among
the student. Jolly Bakery expects to catch the interest of their loyal customer based on their
broad variety of pastry and biscuits. The company not only aim to become the first choice of
their customer but also target to build a market position in Changlun.

3.0 Purposes of preparing the business plan

Business plan is a set of documents prepared by an organization’s management to summarize

for its marketing, operational and financial objective for the near future. It provides step by
step guideline once we started our business . It also provides an idea on how to achieve the
organizational goals . This business plan is very important to every new company like
JOLLY BAKERY because it may help us to our business longer in the Malaysian market.

3.1To evaluate the viability and growth potential

Everyone in the company will use the information contained in the company’s business plan,
whether to set performance targets, guide decision making with regard to on-going
operations ,or access the personnel performance in terms of their ability to meet objectives set
forth in the business plan. A company’s performance and progress can be measured within
planned goals involving sales , expenditures , time frame and strategic direction. Business
plan also help an entrepreneur or business manager identify and focus on potential problems
both inside and outside the company.

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3.2 To apply for loans or financing facilities from the relevant financial institutions

The purpose of this paper is to present the business plan of Jolly Bakery that included aspects
of management, service, financial and marketing. We want to apply for loan financial
amounting of RM 80,000 from MARA .The funding period is 5 years and Jolly Bakery has
applied for a period of 1 year period for business stabilization purposes. The total Project
costs are total RM 82, 000 which the RM 2000 is our own capital while the rest RM 80,000
is through requested loan.

3.3 To act as a guideline for the management of the proposal business

This business plan is guideline for the organization in setting, planning, managing , handling
and controlling our business for day to day management, budget, financial forecast ,
strategies , target market and even long term goal. It is also a master plan of an organization
that necessary to calculate the effectiveness on running such business. A successful business
leader knows that a well –written business plan can provide the day to day operational
assistance . Organizations that stay concentrated on their business plan have a higher chances
of success when use as road map, it can help business to stay focused on business growth ,
mission and organizational goals.

3.4 To allocate business resources effectively

The business plan plays a key role in allocating resources throughout a business so that the
company can meet the organization’s objectives. The company can use the business plan as a
roadmap for helping the business leaders stay focused on business growth , mission ,an
organization’s objectives.. For example, a company are reviewing their business plan to cover
the next stages , it is important to be clear on how they will allocate their resources to make
their strategy work . If a particular department in a company has been given a target , the
resources should allocate enough resources to achieve it. These resources may be already
available, or may be generated by future activity. This could means , the company should be
recruiting more office staff , spending more on marketing , or buying more supplies and
equipment . The changes in the market could means that there are increased opportunities for
a certain division . Maximise on this by making sure that they have enough resources to
increase their activities.

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4.0 Business Backgrounds

4.1 Business information

1. Name of the business: Jolly Bakery

2.. Business address : Lot 48, Varsity Mall, UUM Sintok, Changlun, 06010, Kedah

3.. Correspondence address : Same as above

4. Telephone number : 09-5763211

5. Fax number : 09-5763248

6. Email address: Jollybakery@gmail.com

7. Form of business : Partnership

9. Main activity : Provides and sells cakes, macaroon, and cookies

10.Date of commencement : 2 June 2019

11. Registration number : M-902331

12. Initial (own) capital : RM 54,371.00

13. Name of bank: CIMB Bank

14. Bank account number : 7211832791

5.0 Background of Partnership

5.1.1 Personal Particulars of Partner 1:

i. Name of Partner : MAIZURAH BINTI ABDULLAH

ii. Identity Card Number: 980420-06-5326

iii. Permanent Address of Company : Lot 48, Varsity Mall, UUM Sintok, Changlun, 06010,
Kedah

iv. Correspondence address: No 62, Lorong Pelangkah 5 Taman Pelangkah 26600, Pekan
Pahang

v. Telephone Number : 016-6114432

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vi. Date of Birth : 20 of April 1998

vii. Age: 20 years old

viii. Maritul Status : Single

xi . Academic Qualification : Degree in Bachelor of Operation Management

xii. Course Attended : 1. Advanced in Baking Technology , in Sincere Cake Institute Sabah
2. Business Study and Forum on Entrepreneurship
3. Kursus Intensif Keusahawanan Bakeri
xiii. Skills : Business Management and Basic Accounting

xiv. Experience : Assistant Manager

xv. Present Occupation : General Manager

5.1.2 Personal Particulars of Partner 2

i. Name of Partner : Ain Syuhada binti Musa

ii. Identity Card Number: 980712-03-5946

iii. Permanent Address of Company : Lot 48, Varsity Mall, UUM Sintok, Changlun, 06010,
Kedah

iv. Correspondence address: Kg Bukit Batu Balai Kuala Krai, Kelantan.

v. Telephone Number : 011-17880789

vi. Date of Birth : 12 of July 1998

vii. Age: 20 years old

viii. Maritul Status : Single

xi . Academic Qualification : Degree in Bachelor of Operation Management

xii. Course Attended : 1. Advanced in Baking Technology , in Sincere Cake Institute

2. Business Study and Forum on Entrepreneurship
3. Kursus Intensif Keusahawanan Bakeri
xiii. Skills : Business Management and Basic Accounting

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xiv. Experience : Sales promoter and administration manager
xv. Present Occupation : Administration Manager

5.1.3 Personal Particulars of Partner 3

i. Name of Partner : Ng Yu Yin

ii. Identity Card Number: 981009-07-5684

iii. Permanent Address of Company : Lot 48, Varsity Mall, UUM Sintok, Changlun, 06010,
Kedah

iv. Correspondence address: 1390, Mukim 1, Kampung Pertama, 13700 Permatang Pauh
Penang

v. Telephone Number : 017-5348557

vi. Date of Birth : 9 of October 1998

vii. Age: 20 years old

viii. Maritul Status : Single

xi . Academic Qualification :

xii. Course Attended : 1. Advanced in Baking Technology , in Sincere Cake Institute

2. Business Study and Forum on Entrepreneurship
3. Kursus Intensif Keusahawanan Bakeri
xiii. Skills : Business Marketing and Serve Customers
xiv. Experience : Sales Assistant and Marketing manager
xv. Present Occupation : Marketing Manager

5.1.4 Personal Particulars of Partner 4

i. Name of Partner : Mohamad Ali bin Nasmohitheen

ii. Identity Card Number: 981009-05-5579

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iii. Permanent Address of Company : Lot 48, Varsity Mall, UUM Sintok, Changlun, 06010,
Kedah

iv. Correspondence address: Lot 121, Kampung Baru Saga, Rantau 71200 Negeri Sembilan

v. Telephone Number : 016-6547691

vi. Date of Birth : 9 of October 1998

vii. Age: 20 years old

viii. Maritul Status : Single

xi . Academic Qualification : Degree in Bachelor of Communication

xii. Course Attended : 1. Business Study

2. Business Study and Forum on Entrepreneurship
xiii. Skills : Business Marketing and Serve Customers
xiv. Experience : Sales Assistant and Marketing Manager
xv. Present Occupation : Marketing Manager Assistant

5.1.5 Personal Particulars of Partner 5

i. Name of Partner : Muhamad Adip bin Zulkeflee

ii. Identity Card Number: 980112-02-5795

iii. Permanent Address of Company : Lot 48, Varsity Mall, UUM Sintok, Changlun, 06010,
Kedah

iv. Correspondence address: No 89, Lorong 1, Taman Desa Indah, 08000, Sungai Petani
Kedah

v. Telephone Number : 013-4247718

vi. Date of Birth : 12 of January 1998

vii. Age: 20 years old

viii. Maritul Status : Single

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xi . Academic Qualification :

xii. Course Attended : Business Study and Entrepeneurship

xiii. Skills : Business Management and Basic Accounting

xiv. Experience : Financial Manager at Nationwide Express
xv. Present Occupation : Financial Manager

5.1.6 Personal Particulars of Partner 6

i. Name of Partner : Wan Fathin Sahirah binti Wan Mohd Fauzi

ii. Identity Card Number: 980705-03-5550

iii. Permanent Address of Company : Lot 48, Varsity Mall, UUM Sintok, Changlun, 06010,
Kedah

iv. Correspondence address: KM 14, Jalan Pasir Puteh Peringat 16400 Kota Bharu Kelantan

v. Telephone Number : 011-25448656

vi. Date of Birth : 5 July 1998

vii. Age: 20 years old

viii. Maritul Status : Single

xi . Academic Qualification : Degree in Bachelor of Operation Management

xii. Course Attended : Business Study and Entrepeneurship

xiii. Skills : Business Management and Basic Accounting

xiv. Experience : Operating Manager Assistant
xv. Present Occupation : Operating Manager

5.2 Partnership Agreement

5.2.1 Name of Business

Jolly bakery
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5.2.2 Form of Business

Partnership

5.2.3 Location of Business

Lot 48, Varsity Mall, UUM Sintok, Changlun, 06010, Kedah.

5.2.4 Equity Contribution

The capital contribution of our business is RM 54, 371.00 and the equity contribution are as
follows :

MAIZURAH BINTI ABDULLAH RM 333.33

AIN SYUHADA BINTI MUSA RM 333.33

NG YU YIN RM 333.33

MOHAMAD ALI BIN NASMOHITHEEN RM 333.33

MUHAMAD ADIP BIN ZULKEFLEE RM 333.33

WAN FATHIN SAHIRAH BIN WAN MOHD FAUZI RM 333.33

5.2.5 Financial Matters

The profits and loss of the bakery is distributed among the shareholder according to the
percentage of their capital equity . If one of the shareholders is declared bankrupt or has
many liabilities or has been prevent cheating , all the other shareholders have the right to
remove the guilty shareholder.

If a shareholder does not want to continue his or her involvement in the bakery , his or her
capital will be given back after the profit and loss of the bakery has been taken into
consideration.

The financial manager keeps all the account and all shareholders are allowed to view the
account.

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5.2.6 Management and Position

MAIZURAH BINTI ABDULLAH General Manager

AIN SYUHADA BINTI MUSA Administration Manager

NG YU YIN Marketing Manager

MOHAMAD ALI BIN NASMOHITHEEN Marketing Manager Assistant

MUHAMAD ADIP BIN ZULKEFLEE Financial Manager

WAN FATHIN SAHIRAH BIN WAN MOHD FAUZI Operating Manager

5.2.7 Death and Dissolvement

Dissolvement depends on the agreement of all the shareholders in matters concerning death
or loss of sanity. However , the shareholder should get the profit or capital until the
shareholder quits.

5.2.8 Labour Right

All shareholders should acknowledge the rights of staffs according to the law.

5.2.9 Others matter

Dismissed notice should be given by the shareholder who wishes to quit from the business
within 30 days from dismissed date and agreed by other shareholders. The contribution by the
shareholder can be claimed whether the restaurant gains profits or loss depending on the ratio
of contribution. This dismissal will be enforced within 24 hours notice

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5.3 Signatures of Shareholders

MAIZURAH BINTI ABDULLAH

AIN SYUHADA BINTI MUSA

NG YU YIN

MOHAMAD ALI BIN NASMOHITHEEN

MUHAMAD ADIP BIN ZULKEFLEE

WAN FATHIN SAHIRAH BIN WAN MOHD FAUZI

6.0 Organisation

6.1 Organization’s Logo, Vision , Mission and Objectives

Logo

Jolly Bakery

Vision Our vision to :

Being mindful of our customers and our
staff
Coinciding with our family values , we will
treat both our customers and staff in a
manner in which ourselves would want to be
treated
Gratitude
“An attitude of gratitude” shown to our

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 customers , employees and vendors –because
without their input, labour , service and time,
our business would not be here!

Mission Jolly Bakery aims to offer high quality cakes,

and pastry products at a competitive price to
meet the demand of the low-income, poor
students and local market area residents and
tourists.
Objectives Our objective is to build a local brand of
bakery shop that favour by our people.
We hope to help the poor students inside the
campus by not getting starve

6.2 Organization Chart

Jolly Bakery uses an organizational structure based on functions in the organization . The
firm is divided into marketing , administration, operating and financial. This structure suits
Jolly Bakery as this organizations emphasizes functional specialities to perform tasks . The
organizational structure will cover all aspects of the management as business entity . Below
illustrates our proposed structure

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 General
manager-
Maizurah

Marketing Operation
Administration Financial
Manager- Ng Yu Manager-
Manager- Ain Manager- Adip
Yin Fathin

Marketing
Manager
Assistant- Ali

6.3 Manpower Planning

Jolly Bakery has five partners and they manage , contract and execute the operations of
business as shown in table below. The restaurant manpower planning listed as follows:

Table B.P 1.2

Position Number of Personnel

General Manager 1
Administration Manager 1
Marketing Manager 1
Marketing Manager Assistant 1
Operation Manager 1
Financial Manager 1

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6.4 Schedule Task and Responsibility

Each manager has his/her responsibilities to execute the operations of the business and also
for the general workers. It is very important for everyone in the business to know their own
task and responsibilities in the company as it will guide them in accomplishing their job .
Table B.P 1.3 describes the tasks and responsibilities of every position. The following
functions and responsibilities has been identified and will be delegated to the respective
individual to ensure the smooth operations of the business.

Table B.P 1.3

Task/Position Responsibility
General Manager Complete responsibilities in ensuring the
company objective and mission can be
achieved according to plan.
Supports motivation of employees in
organization products or program and
operations.
Administration Manager Update and maintain database with accurate
client information.
Controls financial expenses for
administration department
Marketing Manager To set a strategic marketing plan for the
company and identify new marketing
opportunities.
Promoting the products and services to the
customers.
Analyse SWOT
Operation Manager Manage the quality of the products and
ensure the problems are handled efficiently .
To set a rules and procedures for staff to
follow in order for department run smoothly.

Financial Manager Manage and control the overall budget ,

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 expenses and profits of the company
Prepare monthly and annual cash flow and
income statement.

6.5 Remuneration Plan

For our bakery, we chose EPF scheme to be given to all employees . Table below illustrates
the remuneration plan of each employee in Jolly Bakery listed as follows:

Position Number of Monthly EPF (11%) SOCSO Total

Employees Salary (2.5%)
General 1 RM 1,800.00 RM 198.00 RM 45.00 RM 1,557.00
Manager
Administration 1 RM 1,300.00 RM 143.00 RM 32.50 RM 1,124.00
Manager
Marketing 1 RM 1,300.00 RM 143.00 RM 32.50 RM1,124.00
Manager
Marketing 1 RM 1,300.00 RM 143.00 RM 32.50 RM1,124.00
Manager
Assistant
Operation 1 RM 1300.00 RM 143.00 RM 32.50 RM1,124.00
Manager
Financial 1 RM 1300.00 RM 143.00 RM 32.50 RM 1,124.00
Manager
TOTAL 5 RM 7,000.00 RM 770.00 RM 175.00 RM 6,055.00

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6.5.1 Salary

Basic wages or salary will be paid in cash as stipulated in the employment contract.Wages
will be paid once a month to the workers and the payment will be paid at the end of the
month . The salary will be debited to their account on the 28 of every month . Any increment
in wages will be decided by the management. Salaries will be given to all employees based
on the qualifications and working experiences.

6.5.2 EPF and SOCSO contributions

EPF is a compulsory saving for all employees so that they will have money to support
themselves once they retire. As a general guidelines , employers are required to contribute at
least 11% of an employee’s basic salary. Jolly Bakery also provide Social Security
Organization (SOCSO) contributions to ensure that employees receive compensation of
work-related accidents or illnesses.

6.5.3 Working Hours

Every employees who works in Jolly Bakery has to work for 12 hours a day starting from 9
am until 9 pm every Sunday to Friday . Employees are given one hour lunch break from 1
pm until 2 pm

6.5.4 Medical Allowance

Medical allowance will be provided in the event of illnesses.

6.5.5 Maternity Allowance

Female employees are entitled to 60 days maternity leave for every confinement period.
Allowance is not given to employees who have more than five surviving children.

6.5.6 Insurance

Insurance coverage will be given to all employees , the premises, or buildings bought or
rented as well as all means of transportation .

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 6.5.7 Bonus

Bonus will be paid depending on the service and job performance

6.5.8 Compensation and Benefit to Workers

Compensation and benefits are given to workers to improve their performance and job
satisfaction.

6.5.9 Holidays

All workers are at least once rest days every week that will be decided by management

6.6 Annual leave and Sick Leave

Each worker will be given an annual leave of 15 days . In terms of sick leave , medical
certificate has to be approved by a registered medical practitioner . If an employee is
hospitalised , he is entitled to 60 days of sick leave whereby his wages will still be paid. But
if employee is hospitalised more than 60 days , his wages will not be paid.

6.6.1 List of office equipment and furniture

Table B.P 1.5 List of office equipment and furniture

No. Type of Place Quantity Price/Unit Total

Equipment (RM) price Cost
per unit (RM)
1. Personal Lelong.my 5 500.00 2500
Office Table
2. Office meeting Lelong .my 1 1,280 1,280
table
3. Office mesh Lelong. my 6 250.00 1,500
chair
4. Laptop Lelong. my 5 2,500 12,500

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5. Printer Lelong .my 3 389.00 1,167
6. Fax Machine Lelong. my 1 449.00 449.00
7. Photostat Lelong. my 1 1,500 1,500
Machine
8. Telephone Lelong. my 1 150.00 150.00
9. Air - Lelong. my 3 1,449 4,347
conditioner
10. Writing board Lelong. my 1 59.90 59.90
11. Filling Tray IKEA.com 5 79.90 399.50
12. First aid kit - 1 35.00 35.00
13. Decoration IKEA.com
Total 25,887.4

6.7 Administrative Budget

Aside from furniture, fittings and equipment , Jolly Bakery also purchased bakery supplier
such as indicated in table below, the administrative budgets includes rent, water, electricity
cost and electrical and promotional cost . Monthly Operating Boarding listed as follows:

BULAN
PERKARA
1 2

Promosi dan Pengiklanan RM 150.00 RM 200.00

Sewa Kedai RM 800.00 RM 800.00

Utiliti RM 300.00 RM 350.00
Gaji Pekerja RM 7,000.00 RM 7,000.00

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EPF & SOCSO RM 945.00 RM 945.00
Perjalanan/Pengangkutan RM 200.00 RM 200.00
Alatulis/Perubatan RM 150.00 RM 150.00
Penyelenggaraan/Keselamatan Premis RM 150.00 RM 150.00
Insuran Perniagaan RM 120.00 RM 120.00
Yuran Audit/ Setiausaha RM 1,950.00 RM 1,950.00
Yuran Perakaunan RM 200.00 RM 200.00
Yuran Percukaian RM 1,200.00 RM 1,200.00
Luar Jangka RM 300.00 RM 300.00
JUMLAH RM 13,456.00 RM 13,565.00

7.0 Marketing Plan

Marketing can be defined as a satisfying needs and wants through exchange process.
Besides, it can be also defined as a process of planning and executing the conception,
pricing, promotion, distribution of ideas, and good services to create exchange that satisfying
individual and organization’s goal. Marketing is a vital element in running a huge business
like Jolly Bakery. Without a suitable and accurate marketing plans, business would never be
accomplished it’s goals and resources such as money, energy, time will be wasted.

A marketing plan set out to a clear objectives and list of action that may help to achieve
the organisation’s goal. The task of marketing department of Jolly Bakery is to fulfill our
belated customers needs. At the same time, we should also be able to achieve our targeted
profits goal. Basically, the idea of marketing is an exchange process which takes place
between a business entity and its customers.

In our business, we are introducing many new types of flavour products which have
never been manufactured before. Likewise, freshly baked cakes, macaroons, cookies, pies,
cupcakes, coffees, ice- blended and other authentic pastries. Statistically, a lot of UUM
students love to eat desserts. This will helps us to gain more amount of customers to visit to
our shop which is placed at Varsity Mall. Most of the UUM’ students are more likely to try
out something new, and our desserts are worth trying. This is because, once we tried, we will
definitely have the desire to try it out for the other flavours. Each and every flavours that we
are offering has its own authentic, unique taste. Vast choices of flavours will lead to a larger
crowd because everyone has their own sense of taste

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7.1 Target Market

Jolly Bakery is a new business which is located in Varsity Mall which we rented and its
situated at UUM Sintok campus. The shop will be located at Lot 48, Varsity Mall, UUM
Sintok, Changlun 06010, Kedah and expected business time will start at 1.00p.m till 7.00a.m
and only open from Sunday till Thursday in a week.

Jolly Bakery will serve all its customers lower, middle and upper income by providing its
products with affordable prices and good quality services that will fulfil its customers needs.
Our bakery will also make no discrimination with customers.

7.2 Market Demographics

i) Geographic:

Jolly Bakery will focus on Varsity mall and its near by student residences halls. Beside, we
are also expects for publics to visit our shop which is place at the very strategic place where
everyone can visit freely. There is also have some other bakeries are already established in
Varsity Mall, but they were not able to provide an authentic pastries as our Jolly Bakery
provides.

ii) Demographics:

Jolly Bakery will strongly focus on all groups of people with:

Age:

Based on the observation made, Jolly Bakery products emphasis on all age group people.
Likewise, childrens, adults, and old age people too. This is because, everyone love to eats
desserts. Moreover, our bakery has also provide a bunch of nutritious drinks with pure fruits
flavours which is very suitable for kids, and also for adults.

Gender:

Focusing on both the genders male and female from kids, adults and mature old aged people.
So, it can be recognized that our business has a huge opportunity to get a lot of customer
support and high profit since we have thousands of students studying in UUM Sintok and
other constituents.

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7.3 Market Trend

The market trends has changed from basic simple pastries to designed and customize
flavoured pastries. For instance, in our Jolly Bakery we let our customers to choose their own
custom made flavour on their own taste interest. We provides quite a lot of flavours of
pastries, cookies, donuts, sandwiches, coffees, ice-blended, and etc. This will attract more
and more of the students to try our delicious pastries.

7.4 Competitors

Due to the strategic place to an pastry bakery in Varsity Mall. The main competitors for our
business is Richiamo Cafe, SR Cafe, and also Pizza Hut. Richiamo Cafe is serving a fine
quality pastries, cakes, coffees and so on for the customers. Besides, this cafe is also launched
by Raja Ilya who is the famous Malaysian actress. This is another factor for this cafe to
become more knowable and famous among the UUM students. Thus, it is one of the direct
competitor for Jolly Bakery. Facing such a competitor with fine delicate cuisine is huge
burden for every new companies like us. Therefore, Jolly Bakery is on its learning stage to
learn from the success of Richiamo Cafe.

SR Cafe besides of Richiamo Cafe, is another direct competitor for Jolly Bakery. This is
because, this cafe is quite famous and have its own branches around the here. Moreover, this
cafe is also served quite a lot of delicates to its customers such as pastries, burgers, cakes,
Nasi lemak (breakfast), coffees, and also ice- blended. Based on its reasonable pricing and
good quality of services attracts most of the students at UUM.

Lastly, with the similar strategies as Richiamo and SR cafes, Pizza Hut is also a dominant
competitor for Jolly Bakery. This is because, it attracts all groups of people because of its
popularity among the successful franchise like as KFC and MC Donald. It has also providing
delicate with affordable pricing where everyone mainly students can afford it. They have also
a good quality and fine services strategic where can fulfil all the customers needs.

7.5 Various Menu Items:

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Pastries Drinks/beverages
Jolly Cookies Coffee/Tea (hot/cold)
Jolly Cakes/cupcakes Ice- Blended
Jolly Sandwiches Fruity juices
Jolly Donuts Carbonated drinks
Ice - creams -

Apart from offering those menus, our Jolly Bakery is also providing some other extra
services just to overcome other great competitors in the same business fields. These are the
some of the extra services where we provides to our belated customer to enjoy spending time
at our Jolly Bakery:

● Wi-Fi connection for Students mainly

● Background sound system

● Bright colourful lighting effects

● Free home delivery orders

● Discount on large purchased

● Loyalty cards for regular customers

● A separate room reserved for small parties

7.6 Marketing Strategies

a) Product Strategy

Based on the mission of Jolly Bakery is to provide best quality and unique products at a
competitive price to meet the demand of the low- income, poor students and local market
areas. Since the main target for Jolly Bakery is UUM students, staffs, and lecturers.
Therefore, our company needs to have some different types of product strategies that be
conducted which are listed below.

UUM Students consumers. For this types group consumers, Jolly Bakery will introduce
students package which are serves the products with lower price for this particular consumer,

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since they are the main customers for Jolly Bakery. With lower pricing and fine quality
services provided, Jolly Bakery expecting a higher loyalty from these group of consumers.

Next, elder groups, for this group of consumers, Jolly Bakery will introduce healthy pastry
package where we will be only offering this group of consumers with lower sugar contain
cakes and healthy flower tea just to encourage the consumers to pay more attention on the
health issues. From this strategy, we could able to prevent some major disease that have been
very popular among our Malaysian nation which is diabetes and high blood pleasure. So, we
can assure our consumers that our products are fully healthy and very suitable for each and
every group of people.

b) Pricing Strategy

As a new business in the market, our Jolly Bakery will employ they competition based
on the pricing element. To gain the share market in the short period of time, our bakery will
analyse the competitor’s pricing strategies and set the product’s price according to the
competitors prices.

According to the analyse by group members, competitors like Richiamo Cafe are setting
the cakes price starting from RM 6.00 to RM 20.00 per piece, and RM 40.00 to RM 100.00
per full cake. Thus, to attract and gain more customers, Jolly Bakery will set its cakes price
from RM 5.00 to RM 15.00 per piece and RM 30.00 to RM 80.00 per full cake.

c) Promotion Strategy

We will be launching a user- friendly web interface. Nowadays consumers a tend to

search information about the companies in the internets ( Radio Centre 2009). Thus, a
success business should maintain a user- friendly web interface that provide valuable
information for the consumers and preferred in multi- language that satisfies the needs of the
global consumers. For instance, we can also promote about our products at the official UUM
Facebook site which is (N.E.W.S.E.E.D).

Based on the research (Paynter and Lim 2001), payment option is one of the reason that
reducing the purchase incentives. Most of the UUM students are not so interest in cash on
deliver (COD). Thus, in order to attract the consumers, Jolly Bakery will provide e-shopping

26
system and money transfer through banks with high security system to ensure our beloved
consumers.

d) Distribution Strategy

To be successful company, Jolly Bakery will follow some distribution strategies that listed
below:

Online order and delivery. Consumers may check the menu from the company website
and place a online order by credit cards. However, only the delivery for minimum expenses
RM 80.00 will be free of charge. The delivery process will be handled by waiters of the shop
and special packaging is a strength for this services.

Walk in customers. Walk in customers will be served by the waiters or waitress. This is
because, to reduce the impatient of waiting line, Jolly bakery promise to serve each and every
customer within 10 minutes once the customers found a seat in the bakery. In case, of being
late our waiters will serve customers with a free drinks as a sign of apologizing.

Special package customer service. The special package service is the special services that
we will provide for pre- booking customers. In certain events, the customers may think about
sending their best wishes to their loved one with their specially customized cakes. So, we will
be allowing our customers to choose their own design and flavours of cakes. However, the
price for this service will be different depends on the requirements of the customers.

8.0 Operational Plan

An operational plan is an annual work plan. It describes short-term business strategies; it

explains how a strategic plan will be put into operation (or what portion of a strategic plan
will be addressed) during a given operational period (fiscal year). An operational plan is the
basis for and justification of an annual operating budget request. Therefore, a strategic plan
that has a five-year lifetime would drive five operational plans funded by five operating
budgets. The operational plan is one of the most important factors to consider a business.
Like other bakery, our target is to ensure that our services are the best quality and able to
satisfy our customers’ nee and wants. Hence, a systematic operational plan is formed so that
our business run smoothly and achieves its objectives.

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8.1 Operational Objectives

The objective of our operational plan are as follows :

● To ensure the operations of the business run smoothly

● To optimize customers satisfaction and fulfil their expectations towards our ability to
provide high quality product and timely services

● To achieve the quality of our products and services needs the established standards

● To ensure our business is profitable and successful

8.2 Business Hours

Our business is open 6 days a week with hours as followed:

DAYS TIME
Sunday 9 a.m. – 9 p.m.
Monday 9 a.m. – 9 p.m.
Tuesday 9 a.m. – 9 p.m.
Wednesday 9 a.m. – 9 p.m.
Thursday 9 a.m. – 9 p.m.
Friday 9 a.m. – 9 p.m.

8.3 Operational Process

The operational process of our business is illustrated below :

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8.4 List of Raw Materials, Quantity, and Cost for One Batch of Pastry

Category Quantity Price/kg Total Supplier

Macaroon
 Salt A pinch RM 1.00 RM 0.20
 Superfine sugar ¼ cup RM 3.00 RM 1.50
Pasaraya Tesco
 Egg 3 eggs RM 2.00 RM 2.00
 Confectioners’ 1 ¾ cup RM 4.00 RM 3.00
sugar
 Almond flour 1 cup RM 8.00 RM 8.00
 Cream of tatar ¼ teaspoons RM 15.00 RM 7.50
Sayang Cakes
 Gel food 2 to 3 drops RM 4.00 RM 2.00 Ingredients
colouring Mart
 Vanilla extract ½ teaspoons RM 4.00 RM 2.00
Biscuit and Cookies
 Sugar ¾ cups RM 3.00 RM 2.30
 Egg 2 eggs RM 1.30 RM 1.30
 Fine salt 1 teaspoon RM 1.00 RM 0.30
 All purpose flour 2 ¼ cups RM 3.50 RM 2.50 Pasaraya Tesco
 Baking soda ¾ teaspoon RM 3.00 RM 1.50
 Unsalted butter ½ cup RM 5.50 RM 2.75
 Dark brown sugar ¾ cup RM 8.00 RM 6.00
 Pure vanilla 1 teaspoon RM 3.50 RM 1.00 Sayang Cakes
extract Ingredients
 Semisweet 1 bag RM 20.00 RM 20.00 Mart
chocolate chips
Cakes and Cupcakes
 Salt ¼ teaspoon RM 1.00 RM 0.20
 Baking powder 1 ½ teaspoon RM 3.00 RM 1.50
 Sugar 1 cup RM 3.00 RM 3.00
 Eggs 2 eggs RM 1.30 RM 1.30
 Whole milk ½ cup RM 7.50 RM 3.75 Pasaraya Tesco
 Sifted cake flour 1 ½ cup RM 5.50 RM 2.75
 Vanilla extract ½ teaspoon RM 3.50 RM 0.50
 Unsalted butter ½ cup RM 5.50 RM 2.75

TOTAL RM 79.90

Jolly Bakery make about 5 batch of pastry which is equal to RM 399.50 per day.

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8.5 List of Bakery Machine, Equipment, Supplies
Jolly Bakery has bought tools and equipment’s from IKEA and Mr. DIY, Alor Setar, machine
from mudah.com and furniture from Alpha Tiles Trading Sdn. Bhd. Table below illustrates
the list of bakery machine, equipment’s and supplies in Jolly Bakery listed as follow :

Category Type/Model Quantity Price/Unit Total Supplies

Oven 3 RM 1650.00 RM 4950.00 mudah.com
Machine Planetary mixer 3 RM1,299.00 RM 3,897.00
Total RM 8,847.00
Plate 50 RM 2.00 RM 100.00
Bowl 50 RM 2.00 RM 100.00
Fork 6x1 8 RM 2.00 RM 16.00
Spoon 6x1 8 RM 2.00 RM 16.00 IKEA
Tupperware 5 RM 7.00 RM 35.00
Polystyrene 5 RM 10.50 RM 52.50
container
Tools and Tupperware 5 RM 10.50 RM 52.50
bowl
Equipment Plastic fork 4 RM 1.50 RM 6.00
Plastic spoon 4 RM 1.50 RM 6.00
Plastic knife 6x1 8 RM 1.50 RM 12.00
Tray 20 RM 3.00 RM 60.00
Straw 6 RM 1.00 RM 6.00
Plastic bag 10 RM 3.50 RM 35.00 Mr. DIY
Plastic 10 RM 4.00 RM 40.00
Cup 50 RM 2.00 RM 100.00
Glass 30 RM 2.00 RM 60.00
Total RM 697.00
Table 6 RM 90.00 RM 540.00
Chair 30 RM 20.00 RM 600.00
Refrigerator 1 RM 1500.00 RM 1500.00 Alpha Tiles
Furniture Counter table 2 RM 350.00 RM 700.00 Trading
Table serve 1 RM 500.00 RM 500.00 Sdn. Bhd.
Banquet 1 RM 350.00 RM 350.00
Children chair 6 RM 15.50 RM 90.00
Total RM 4,280.00
Total RM 13,824

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8.6 Estimation of Purchases in Two Years

Jolly bakery operation in a month is 24 days so it is equal to RM 79.90 multiple by 5 times a

day. Then equal to RM 399.50. This cost is per day, so per a month, it equal to RM 9,588.00.
The estimation in table below covers all stock for our Jolly Bakery.

MONTH YEAR
1 2

New stock RM 9,588.00

January RM 10,588.05 RM 18,541.05

February RM 15,577.03 RM 21,504.50
March RM 18,643.00 RM 23,694.40
April RM 15,905.02 RM 40,657.50
May RM 20,300.10 RM 20,495.00
Jun RM 18,537.07 RM 24,643.05
July RM 21,504.60 RM 28,684.60
August RM 25,400.05 RM 31,502.02
September RM 22,654.20 RM 30,672.04
October RM 23,530.03 RM 31,650.02
November RM 30,480.05 RM 28,500.01
December RM 29,506.40 RM 32,657.45
TOTAL RM 262,213.60 RM 302,529.60

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8.7 Location of Operation

8.8 Operation Layout

TOILET

TABLE TABLE TABLE

BAKERY
SECTION TABLE TABLE TABLE

TABLE TABLE TABLE

BANQUE

SLIDING
DOOR

32
8.9 Operation Overhead (Indirect Labour/Indirect)
No Types of Overhead Monthly Cost (RM)
1 Driver 1000.00
2 Electricity 3,500.00
3 Water 2,000.00
4 Telephone 300.00
5 Internet 300.00
6 Machine maintenance 650.00
7 Vehicle maintenance 650.00
8 Fuel 750.00
9 Gloves 300.00
TOTAL 9,450.00

9.0 Financial Plan

A financial plan is important for overall process success of Jolly Bakery because it helps:
 Determine the size of investment that is the project implementation cost
 Identify and propose the relevant sources of finance
 Appraise the viability of the project before actual investment is committed.
 Guide the implementations of plans.

33
9.1 Project Implementation cost schedules and sources of finance
Jolly Bakery Project Cost

Bil ASET
1 Premise Renovation 1200.00
2 Machine 8847.00
3 Tools and Equipment 697.00
4 Signboard 300.00
5 Furniture 4280.00
DEPOSIT
1 Rent Deposit 600.00
2 Water, telco line and electricity Deposit 300.00
3 Others 1300.00

PROFESSIONAL FEES
1 Business Registration 350.00
2 Legal Fees 1100.00
3 Process Fees 350.00
4 Insurance Loan 300.00
OTHERS
1 Entrepreneur Training Fees 1200.00
2 Promotion and Ads for pre-operation 500.00
3 Business Insurance 150.00
4 Early Stocks 7329.00
5 Worker Salary 7000.00
6 Round Capitalization 39,894.00
TOTAL 81,971.00

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 Financial Structure

1 Partnership Capital 2000(2%)

2 Loan 80000(98%)
TOTAL RM82000.00

9.2 Fixed Assets Depreciation Table

Assets Interest Rate Cost Economic Annual Monthly

Depreciation
Categories (%) Life Depreciation
Premise 20% RM 1,200 5 years RM 240 RM 20
Renovation
Machine 20% RM 8847.00 5 years RM 1,769.4 RM 147.45
Tools and 20% RM 697.00 5 years
Equipment
Signboard 20% RM 300 5 years RM 60 RM 5
Furniture 20% RM 4,280.00 5 years RM 856.00 RM 71.33

9.3 Project Implementation and Schedule

Process Days Percentage

Recognizing customers needs 3 12 %
and wants
Analysing or scanning the 3 12%
environment
Performing self assessment 4 16%
Screening or choosing 3 12%
business opportunities
Matching societal values, 4 16%
communities response, or
people acceptance
Preparing or constructing a 8 32%
business plan
Total 25 100

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10.0 Conclusion

We are grateful to finish this business plan. We have gone through lots of new experiences
and it is very beneficial for all of us in participating in this business. We hope that our
business will be progressed smoothly in the future. Our target is that we want to achieve high
profit in involvement in this business even though there are many rivals exist .Unfortunately,
with good operation will all the subordinates we manage to compete with the rivals fair and
square.

We hope that through our dedication and hard work , we will achieve our vision to
become the only company is the best in producing a product of cake and create a benchmark
for other cake shop in the aspect of quality standard . Before that, we should also shows our
effectiveness in doing our job and to make sure that our product will be available in area of
Sintok and Changlun and also along in Malaysia.

Based on planning and projection of income of expenses, the company is very confident
that this business venture will create a satisfactory from the second year of operation. For the
first year, we are estimating to incur a very minimal loss as we have made a conservation
estimate of sales and expensed based on the fact that the company has just started the
operation. The business will continuously perform the business strategies, especially on the
marketing aspects to ensure that the business is well known to the customers and we hope to
build a loyal customers based in second year of operation. We hope that Jolly Bakery will
strive for the better in the future.

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11.0 Supporting Documents

Category Quantity Price/kg Total Supplier

Macaroon
 Salt A pinch RM 1.00 RM 0.20
 Superfine sugar ¼ cup RM 3.00 RM 1.50
Pasaraya Tesco
 Egg 3 eggs RM 2.00 RM 2.00
 Confectioners’ 1 ¾ cup RM 4.00 RM 3.00
sugar
 Almond flour 1 cup RM 8.00 RM 8.00
 Cream of tatar ¼ teaspoons RM 15.00 RM 7.50
Sayang Cakes
 Gel food 2 to 3 drops RM 4.00 RM 2.00 Ingredients
colouring Mart
 Vanilla extract ½ teaspoons RM 4.00 RM 2.00
Biscuit and Cookies
 Sugar ¾ cups RM 3.00 RM 2.30
 Egg 2 eggs RM 1.30 RM 1.30
 Fine salt 1 teaspoon RM 1.00 RM 0.30
 All purpose flour 2 ¼ cups RM 3.50 RM 2.50 Pasaraya Tesco
 Baking soda ¾ teaspoon RM 3.00 RM 1.50
 Unsalted butter ½ cup RM 5.50 RM 2.75
 Dark brown sugar ¾ cup RM 8.00 RM 6.00
 Pure vanilla 1 teaspoon RM 3.50 RM 1.00 Sayang Cakes
extract Ingredients
 Semisweet 1 bag RM 20.00 RM 20.00 Mart
chocolate chips
Cakes and Cupcakes
 Salt ¼ teaspoon RM 1.00 RM 0.20
 Baking powder 1 ½ teaspoon RM 3.00 RM 1.50
 Sugar 1 cup RM 3.00 RM 3.00
 Eggs 2 eggs RM 1.30 RM 1.30
 Whole milk ½ cup RM 7.50 RM 3.75 Pasaraya Tesco
 Sifted cake flour 1 ½ cup RM 5.50 RM 2.75
 Vanilla extract ½ teaspoon RM 3.50 RM 0.50
 Unsalted butter ½ cup RM 5.50 RM 2.75

TOTAL RM 79.90
Jadual 1 : Sebut harga Pembekal

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 Photo 1 : Yummy fresh baked
macaroons

Photo 2 : Varieties of Desserts

Photo 3: Types of cakes that are available in Jolly Bakery

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Photo 4 : Business Licences owned by Jolly Bakery

Photo 5 : The buying process of cookies in Jolly Bakery

39