BPD 2100 
International Business Challenge (IBC-2) 
Assessment 2: Business Case Final 
 
 
Presented by: 
 

 
 
Name  VU ID 
Muhammad Aqmal Nurhakim B.Dato’  4572460 
Mohd Kamari 
Salsa Fania  4573021 
Tan Wee Chong  4572530 
Fernando Tannoto  4559352 
Chan Shu Yen  4580697 
 
 
 
 

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Business Cover Letter 
Ms. Soon Pei Shan
Managing Director
Kinder (Malaysia) Sdn. Bhd.
B-11-01, The Ascent Paradigm,
No.1, Jalan SS7/26A, Kelana Jaya,
47301 Petaling Jaya,
Selangor Darul Ehsan, Malaysia.

29​ ​April 2018.

 
Subject: Business Proposal Review 
 
Dear Mr. Soon,

Attached is a copy of a business plan about Kinder business expansion. My team, which is Team Walker
consist of 5 people including myself, would like to present our business plan idea by expanding Kinder
Chocolate with Cereal in order to get more customers as well as to improve the competitive advantage in
the confectionary market by introducing Kinder product that have never been introduced in Malaysia. The
business will be launch for three-year period starts from 1st July 2018 to 1st July 2021. Moreover,
contribution to the society will also be included in the business project where we will donate 10% of the
profit earned from the project period stated above.

For the past 5 years, our team have been serving for Cadbury (Malaysia) for their marketing and financial
department. We have raised the company’s profit by 20% over the last 5 years. Furthermore, our team
have come out with several projects for Nestle, Snickers, Hershey which assisted them to gain their market
share in Malaysia and being the top 10 chocolate brands in Malaysia.

This business proposal is a confidential document specially designed to serve the purpose to inform your
company regarding the details on applications of areas per financing request towards your company. Any
detailed consideration and advice from professionals in regard to our business plan is highly encouraged
for the development of this project. It will be great if you could return the business plan to us after you have
made your decision.

We appreciate the time you have given in evaluating our business proposal and we hope to hear from you
soon and arrange a meeting.

Thank you for reading and review our business plan.

Sincerely,

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Mohammad Aqmal
Team Leader of Idea Generator.
 
Executive Summary 
In the Year 2018 will be the time when a healthy lifestyle becomes more mainstream as a lot of
Malaysians are now smarter about the choices that they make to deal with their weight and health problems
(Tang 2017). As Malaysians are aware of health issue and more towards to have healthy lifestyle, it will
make Malaysian to be cautious with their sugar intake level as well. Besides, Malaysian always like to skip
their meal especially breakfast due to their busy lifestyle which make them difficult to eat a proper
breakfast. Due to these factors, team walkers come out with a business idea for expansion of Kinder
chocolate with cereal and a ‘Sport Carnival’ to improve Kinder CSR by promoting the Malaysian young
people and family’s an active and healthy lifestyle. Also, Kinder chocolate Malaysia indeed has its own
unique selling point as the brand offers a healthy chocolate bars as compared to other brands that only
focuses on their promoting tactic instead of the ingredients. Malaysians who would like to consume healthy
food now has a brand that they can rely on as Kinder chocolate with cereal not only made of chocolate but
also 5 cereals, more milk, and less sugar which made this chocolate bar has healthy ingredients that
simultaneously will help customers to not skip their breakfast.

Kinder chocolate with cereal expansion in Malaysia team will be led by 5 experienced executives
from 2 accounting executives, 2 marketing executives, and 1 business development executives based in
Malaysia which all of them have experienced working in chocolate industry at Cadbury so it ensures that
team walkers have in depth knowledge to do the marketing, accounting, and managing the production
process and staffs to make the project is successful. The team will also hire additional 1 driver, 1
warehouse workers, and 10 promoters.

The budget part will further explain the immediate start-up cost of Kinder chocolate with cereal
expansion in Malaysia, the annual cash operating budget and the summary budget projections starting from
July 2018 to July 2021. In terms of the start-up cost, a total amount of USD 9,041 will be allocated. The last
part of the budget, highlight on the summary budget projection of the operation up to 3 years. The first year
of operation shows a net profit of USD 25,217, second year having a net profit of USD 31,416 and the third
year having a net profit of USD 32,388 in which the projected increase in net income can be seen every
year.

Overall, Kinder chocolate with cereal expansion will gain competitive advantage in Malaysia
chocolate industry. Team walkers will also enhance the kinder Malaysia CSR profile involve the company’s
contribution of 10% of the total net profit for sport carnival project to promote active lifestyle for young
people and families. Team Walkers truly believes that the expansion of Kinder chocolate with cereal and
the sport carnival project will help in providing Malaysians young people and family’s to living an active
healthy lifestyle. The team walkers have done the best to make sure that this expansion and the sport
carnival will be a successful one.
 
 
 

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Table of Content 
 
1. Introduction and Background of Business Case…………………………………………………………………1
2. Business Case Definition…………………………………………………………………………………………..2
2.1 Nature of the business…………………………………………………………………………………………….2
2.2 Business Case Aim………………………………………………………………………………………………..2
2.3 Business Case Scope and Timeframe………………………………………………………………………….2
3. Feasibility Analysis………………………………………………………………………………………………….3
3.1 Market Analysis…………………………………………………………………………………………………….3
3.2 SWOT Analysis…………………………………………………………………………………………………….4
3.3 PESTLE Analysis………………………………………………………………………………………………….5
3.4 Practical point of view……………………………………………………………………………………………..8
4.0 Business Case Stakeholder and Stakeholder Analysis……...…………………………………………….….9
5.0 Program Logic Model…………………………………………………………………………………………….10
6.0 Resources…………………………………………………………………………………………………………12
6.1 Human Resources……………………………………………………………………………………………….12
6.2 Physical Resources………………………………………………………………………………………………12
7.0 Gantt Chart Summary………………………………………………………………..………………………….12
8.0 Budget……………………………………………………………………………………………………………..13
9.0 List of References………………………………………………………………………………………………..14
10.0 Appendices………………………………………………………………………………………………………20
10.1 The Project Team……………………………………………………………………………………………….20
10.2 Business Case Methodology………………………………………………………………………………….21
10.3 Other Appendix…………………………………………………………………………………………………23
10.3.1 Currency………………………………………………………………………………………………………23
10.3.2 Inflation Rate………………………………………………………………………………………………….23
10.3.3 Cost of Goods Sold…………………………………………………………………………………………..24
10.3.4 Markup Price………………………………………………………………………………………………….27
10.3.5 Human Resources……………………………………………………………………………………………29
10.3.6 Other Cost add on to labor cost…………………………………………………………………………….33
10.3.7 Office Equipment……………………………………………………………………………………………..37
10.3.8 Utility Expenses……………………………………………………………………………………………….41
10.3.9 Occupancy Cost………………………………………………………………………………………………42
10.3.10 Communication and System……………………………………………………………………………….44

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10.3.11 Advertising Cost……………………………………………………………………………………………..45
10.3.12 Stationery…………………………………………………………………………………………………….46
10.3.14 Transportation Expenses…………………………………………………………………………………..51
10.3.14 Other Administrative Expenses……………………………………………………………………………53

 
   

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1.0 INTRODUCTION AND BACKGROUND TO THE BUSINESS CASE 
Kinder or also known “children” in German is own by Italian multinational Ferrero SpA. Originally, it
is developed and manufactured in Germany Frankfurt to be precise in 1967. However, a year later been
sold to Ferrero SpA which is in 1968. Now, Kinder been produce a lot of product such as Kinder Bueno,
Kinder Surprise, Kinder Joy and so on which bring happiness and joy especially kids all across the globe.
Every single of the product are very unique and have its own soul and missions. Align with Kinder mission
statement is to “create unique products and experiences that enhances the happy moments in their lives”
and this make Kinder believe it will bring joy and happiness to children’s. In operational, Kinder have a lot of
manufacture in all continent and this is one of the competitive advantages toward Kinder. Since there are
few Kinder product that already introduced in Malaysia such as Kinder Bueno, Kinder Joy and so on, the
idea of this project is to do expansion and introduce another product by Kinder which is Kinder Chocolate
with Cereal. The product never been introduced before and it have high potential in Malaysia market due to
certain reason and facts. One of the reasons is that Malaysian becoming more health conscious (The star
Malaysia 2017). Especially, they concerned about the sugar level intake that they eat. Therefore, we
introduce Kinder Chocolate with cereal as it contains 5 different cereal, more chocolate, more milk, and less
sugar. Even Though, there is a misconception that Kinder chocolate product contain dangerous chemical
Mineral Oil Aromatic Hydrocarbon that can cause cancer and liver damage (Independent 2016), but this
issue might not affect the Malaysian market as this issue has been solved by the nutritionist. The health
expert said that the mineral oil that was found in kinder chocolate is too little to cause any significant danger
and other chocolate brand may also contain this mineral oil as it is very hard to avoid, but since the level of
the mineral oil that found in each bar is low so there is no need to worried to eat it (Webster 2016).

As for CSR, there are three existing CSR that Ferrero SpA has. First, Ferrero farming values
programme. In this programme, Ferrero works with non-profit organizations and farmers to address
agricultural, social, environmental and business concerns in cocoa farming. Ferrero also supports ongoing
local projects to ensure sustainable cocoa production, while improving the living conditions of cocoa
farmers and the welfare of their communities. One of the examples of projects in this field like collaborating
with Fairtrade cocoa program where Ferrero will source the new cocoa under them which make farmers to
benefit by selling more of their cocoa as Fairtrade (Ferrero CSR 2016). Secondly, Pilot project. It was
launched to use renewable material that safe to use for wrapping the product. Also, it to reducing the
environmental footprint by using paper instead of plastic. The paper that being used is only source from
sustainable certified chains. Last is Joy Moving Programme which under Kinder Sport Project. The goal of
this project is to encourage physical activity for young people, inspire children and young adults around the
world to adopt an active lifestyle from early childhood so that it becomes an integral part of their daily lives.

As Kinder has always dedicated its efforts in promoting an active global lifestyle among young
people and families. We would like to propose a sport carnival to promote healthy lifestyle which will be
held in Malaysia for every three month that we will move from town to town and select a number of primary
school from the area to join our sport carnival as this also support one of the Kinder CSR mission which to
support continuously and expanse of Kinder Sport project by expanding it in 30 countries around the world
(Ferrero CSR 2016)
 
 
 

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2.0 BUSINESS CASE DEFINITION AND SCOPE 
2.1 NATURE OF BUSINESS 
Kinder is very popular of producing their quality and tasty chocolate. The project idea is to expand
one of their products which is Kinder Chocolate with Cereals and introduce to Malaysia market. The
product will be import directly from China which is Kinder manufacture in Asia. Why we chose Kinder
Chocolate with cereals because Malaysian tend to skip their meal especially breakfast due to working and
others. With one chocolate bar, it is equal with one meal due to the contain of cereal.

As for set up, the office and warehouse will be located in Shah Alam and we tend to first introduce
the product in Sunway and Subang area. We will position our product in supermarket and big stores such
as Giant, Tesco, AEON and others for starters. We will sell the product with two type of packaging which
are single unit and whole bundle.

As for marketing plan, we will giving out free sample in shopping mall across Subang and Sunway
area and also ask for their feedback regarding the product. Apart from that, every RM 1 of the unit been
sold will be put into an account to support our CSR project which is Sport Carnival for Kids around town.
The idea is to do monthly Sport Carnival from town to town in Selangor area as for beginning and we will
invite a number of primary schools kids to join the Carnival. The event will include certain sports activity
such as futsal, mini games, small contest to enhance healthy lifestyle and also creativity of the kids. This
also align with Kinder CSR which is Kinder Sports and indirectly will bringing up Kinder image.
 
2.2 BUSINESS CASE AIM 
As stated in 6.1 Nature of Business, the business aim is to provide a whole meal in single bar
which people can enjoy the chocolate contain cereal in it especially breakfast. Due to the fact that
Malaysian people loves chocolate and also cereals, the idea of the product is unique and combine both of it
in single bar. This will shorten customer time because the whole idea for the customer to “grab n go”
without need to prepare actual meal and they can eat it anywhere anytime. As for our CSR, it is discussed
to enhance children healthy lifestyle and creativity as we provide Sport Carnival from town to town. The
target for this event will be primary school kids and hopefully we will bring joy and happiness in their life.
 
2.3 BUSINESS CASE SCOPE AND TIMEFRAME 
We had planned on our project that needed to be done in order to make the Kinder Chocolate with
Cereal going smoothly. For example, making the advertisement for Kinder Chocolate, observe about the
new target market and make analysis, plan a market strategy on expanding the product to the new
countries. This business idea will run for 3 years. The idea of this business case is to be able to gain more
customers and also increase the reputations of the company in order to generate more profits. The Kinder
Chocolate with Cereal will be expanded to China (Shanghai) and Malaysia (Kuala Lumpur) by 1 November
2018. This product will be targeting on the children and teenagers as well as the existing customers. The
financial expenses for the expansion of market will also be calculated in Budgeting. We will ensure that this
product will be expanded successfully to the new market and will make profitability in these 3 years.

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3.0 Feasibility Analysis 
3.1 Market Analysis 
Nature of the Industry 
The decision of introducing new product which is Kinder chocolate with cereal to Malaysia by the
company itself is a wise decision based on the market analysis point of view. Their purpose in expanding
the market to Malaysia is acceptable as the Global Confectionery Market size of food products such as
chocolates is expected to reach the target of $232,085 million by the year 2022 from $184,056 million in the
year 2015 which is supported by the Compound Annual Growth Rate (CAGR) of 3.4% during the forecast
period of 2016-2022 (Allied Market Research 2017). Moreover, according to Ferrero Spa, the company
closed the financial year with a consolidated turnover of 10.3 billion Euro as the year ended 31st August
2016 with an increase of 8.2% compared to the consolidated turnover of 9.5 billion Euro on the year 2015.
This shows that the company is performing well on their business based on the evidence. Besides, the
Ferrero Company has a positive growth each year and its profitability cannot halt to increase for the last
twenty years. These can be considered as a good improvement on considering how many food brands
producing chocolate globally. Therefore, the brand needs to take these opportunities to expand their
product into a new market which is Malaysia.
 
Market Segmentation 
Ferrero target market can be divided into four segmentation which are demographic segmentation,
behavioral segmentation, psychographic segmentation and geographic segmentation. As for demographic
segmentation, Ferrero chocolate will target to all income, all religions, all nationalities, and all ages
especially young generation because the idea of chocolate will attract kids more compare to others. For
behavioral segmentation, Ferrero will target on festivals since products such as chocolates will sell more on
festivals but still, we will place our product in stores and supermarket. In psychographic segmentation,
Ferrero will target their products to all social classes as the buying power such as income and spending
habits will not have a big impact. Lastly, for geographic segmentation, Ferrero will be target supermarket
and big stores around Subang and Sunway area for starters.  

Past and Future Trends 

In 90’s, chocolate confectionery is already exist in Malaysian market (Nierhoff 2014). A chocolate
such as eyeglass chocolate candy, Choki-Choki, Apollo, and chocolate finger were popular back then.
These 4 chocolate was made by chocolate milk, but as for Eyeglass chocolate candy even though the
chocolate is not the world’s best but it was cheap and the eye glass foils packing that we need to pierce the
chocolate beans out of is attract the children. Same goes as Choki-Choki which the unique of it is a pure
chocolate in a straw like wrap and chocolate finger packaging that has catchy and shiny foil that never fail
to attract the children attentions. Also, even Apollo was popular back then as the chocolate smeared and
melted easily, but most of us did not mind leaking them off the wrap as it was just delicious Until now these
4 chocolate still survive in the Malaysian market even though is not as cheap as in the past, but
Choki-Choki and Apollo were still can see in any supermarket like AEON or TESCO while others chocolate

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is quite hard to find (Choo 2015). Other than that, Based on key parameter, it is said that Malaysian prefers
a chocolate with 25% nutty, cookies, or crunchy texture which is explains a Ferrero Rocher , Cadbury, and
kinder chocolate popularity among Malaysian respondents (Young et al 2016).

The Malaysian chocolate confectionery market has developed gradually over the past years.
Due to increasing general health awareness among consumers, most Malaysian still perceive less sweet
chocolates to be less appetizing and prefer sweet chocolates. However, still there are some consumers
prefer a chocolate with less sugar and healthy ingredients even though the price more expensive. Besides,
Consumers still continue to enjoy chocolate as the company organizes a lot of promotional promotions and
advertising campaigns to attract consumers attention. The different between in the past and now is that the
portions of chocolate that consumer eats. Nowadays, many consumers prefer small portions to control the
intake of chocolate that they consume. For example, the Kit Kat Mini was introduced in April 2017 to serve
consumers who favor smaller portion controls offered by small size products. Also, Malaysian prefers a
chocolate that can eat on the go like bar shape or bite size product as there is a growth of 5% for chocolate
bars and bite size in the market compare with boxed assortment which the growth rates is slow down
(Malaysian Chamber of Commerce and Industry 2015). Further, as Malaysian taste and preferences
always change and curios to try new things, the chocolate with unique flavors such as durian, green tea, or
even chili and filled the chocolate texture with kind of nut or biscuits may attract a lot of consumer to try it
because the demand for chocolate lover in Malaysia is growing faster compare with Europe market (Raghu
2017). 
 
Competition or Competitors 
Several years ago, English Quakers built the foundation of today’s top confectionary market. Some
of their famous products are Rowntree, Fry, Cadbury and Terry’s. On the other hand, Swiss also created
Nestle, Tobler and Lindt to take advantage of the market with their expertise skill. Nestle now become the
world’s leading chocolate manufacturer, and it is followed by Mars Incorporated. Moreover, chocolate bars
such as Crunchie, Mars, Snickers, Picnic, Kit Kat and Violet Crumble have about 40 percent of chocolate
market sales. All these brands have become Ferrero competitors for decades. 
 
3.2 SWOT Analysis 
Strengths 
Since the Kinder is a popular brand under the company, Ferrero SpA with more than 60 years old
of brand name, it presents in 55 countries and the products of Ferrero are present and sold, directly or
through authorized retailers in more than 170 countries worldwide. It is a trusted brand by the mothers for
their children as the products of Ferrero such as Kinder, Nutella and Tic Tac were getting higher demand in
the market globally. Besides that, one of the products from Ferrero, Kinder Bueno is a chocolate bar that
has a higher demand comparing to other products because of the characteristics of it. The Kinder Bueno
chocolate bar is light and easy to take in anywhere and is made with good qualities of ingredients with the
goodness of milk. Moreover, the products of Ferrero also come with variety of packages which people can
buy with more quantities.

Weaknesses 

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 One of the weaknesses that has in Ferrero is the company has no price superiority which means
that if the price of the products of Ferrero is higher compare to the other brands, consumers will prefer the
same product but with different brands that have lower prices. Secondly, Ferrero currently has a narrower
distribution channel which is primarily centred around the cities only. This means that the company did not
emerge their markets into rural and local areas. Furthermore, the Kinder Bueno is made with hazelnut
which may cause allergies to some consumers. This may affect the sales of the company as some
consumers are not willing to buy the product which can cause them to have allergic reaction.

Opportunities 
As chocolate is the most popular confectioneries in people’s life, most of the people eat chocolates
every day. Since Kinder is a word in German which means ‘children’, the Ferrero company strives to
provide an alternative to the traditional brands, making the brand itself to be a strong player in the children’s
chocolate confectionery market by offering a wide range of products such as putting toys into the Kinder
Joy. Secondly, all of the Kinder products from the Ferrero company are free from artificial colourings and
preservatives. Each of the Kinder products has brought special characteristics to the children. This means
that because of the Kinder products that can keep a lot of children and parents attractions, the Ferrero
company can get some profit from that.

Threats 
As for the threats that have in the Ferrero company, there are many different kind taste of
chocolate or different brands of confectionery products in the market. Besides that, there are also plenty of
substitutions that customers can buy besides buying Ferrero products such as Cadbury, ​Nestlé, Lindt and
others. If Ferrero does not create any new goods or special goods, it will be difficult for them to keep some
of the customers from buying their products again. Moreover, there are some new competitors in chocolate
market. Furthermore, since the package of Kinder Bueno is made of plastic, this means that the package is
not recyclable, thus it will pollute the environment.
Strengths Weaknesses

- More than 60 years old brand - No price superiority

- High brand loyalty - Lack of advertising in emerging market
- Popular brand name - Narrow distribution
- Good quality ingredients - May inhibit sales due to nut allergies
- Globally marketed brand
- Variety of packages
- Free from artificial colourings

Opportunities Threats

- Offer a wide range of product - Competition from other chocolate brands

- Tap the untapped market - Not recyclable product
- Sponsorship to events, shows and competition for - Difficult to keep customers
kids
 
3.3 Macro-Environmental Factors (PESTEL Analysis)  

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Political 
The political stability of 2017 in Malaysia is secured (Miwil 2018). Malaysia is a democratic country
and because of this our business can have advantages in terms of less restriction in trade agreements and
sales scales. However, there are political issues that may impact to the exchanges rates, trade agreement,
and government policies that will disadvantage to our business as an importer. Furthermore, as Malaysia is
ranked as Asia’s most obesity country, the government concerns leads them to introduce a new health
policy which is a sugar tax to decrease the amount of sugar for any confectioneries product (Anand 2017).
This sugar tax might still new and there is no confirmation yet from the government, but it still can affect to
our product as we need to be careful on the sugar level that we use in our product. 
Besides, the Halal certification becomes a concern for most of the Muslim consumer in Malaysia
since the Cadbury case (Hafiz 2014). Therefore, it really important for our chocolate to be certified as Halal
which the halal check will be conducted by the Malaysian Islamic development (JAKIM) as well as
Malaysian Health Ministry to make sure that our chocolate can be consumed for all consumers in Malaysia
(Tang 2017). Otherwise, it will become a big problem as the government might intervene into our business
operation and we might need to face from the political point of view to settle the issue. In order to minimize
the impact of the political issues that might affect to our business, it would be better if our company prepare
in advance to handle the political issue of Malaysia.
Economical 
The economic conditions of Malaysia benefit us as an opportunity as well as a threat. Back then in
2015, many had assumed that Malaysian economy would have a recession by 2018 based on historical
data. However, there is no hint or clue that Malaysian economy is on the path to crisis, but based on
Malaysian Institute of Economic Research (MIER) studies that Malaysia can be at the high-income status
as early of 2018 (Abidin 2017).
The 2018 is a good year for the economy in Malaysia as there are low inflation rate of 1.4% in
February 2018 compares with previous month which is 2.7% and low unemployment rate of 3.4% in
January 2018 compare with last year which is 3.5% (Trading economic 2018). From all these rates, it is
shows that there is a stable economic condition which beneficial to our business as low inflation will
encourages consumer to buy our product because people have money to spend and low unemployment
increase the production efficiency as when our business operate with full workers, they able to maximize
level of our product each day to meet customer demand.
Socio Cultural 
Malaysia is a multiracial and multicultural country which is famous for its social and cultural
merging. The population in Malaysia has more than 31, 951, 983 according to the 2017 census which made
Malaysia the 42nd most populated country of the world that consist of people who have differents religions
and cultures (Worldpopulationreview 2018). ​Although the city of Putrajaya is considered the administrative
capital of Malaysia, Kuala Lumpur is the most populous city and the capital city of Malaysia is also
recognized as a major economic center in the region.
According to department of statistics Malaysia, ​ethnic Bumiputera which is Malays has the highest
percentage in the recorded with 68.6 percent, followed by Chinese (23.4 percent), Indians (7.0 percent),
and Others (1.0 percent). The percentage of non-Malaysian citizens by 2017 is 10.3 percent of the total
population in Malaysia. When considering the religious background in Malaysia, Islam is the official religion
and extensively broadened which represents 61.3% of the total population and 19.8% belong to Buddhism.
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Furthermore, as a result of multiracial and multicultural nations 9.2% of Christians, 6.3% of Hindus and
4.0% of other denominations represent the total population (Indexmundi 2017). As the impact of economic
boom in Malaysia, most of the features of western culture are strongly influenced to Malaysia's lifestyle.
Many locals have started to use English as their language and most of the western customs have been
accepted by local peoples. In addition, in 2017 Malaysians living longer which expected to live up to 74.8
years (Azman 2017). This is mainly because of the health conscious lifestyle that they having now. Due to
the Malaysian consumer prefer nutritional foods, this make us to have a greater potential in Malaysian
market as our new kinder chocolate product is using real chocolate, more milk, cereals, and less sugar.
Furthermore, most Malaysians prefer halal food because most Malaysians are Muslim so as a chocolate
company, we must strongly consider the facts mentioned above to avoid any issues in the future.
 
Technology 
The technological advances can be developed by research and development which will help to
reducing material and transport costs such as heat resistant chocolate which would be suitable for Malaysia
as the climate of Malaysia is hot (Jinap 2012).

In Malaysia, the popularity of cloud computing and social media application is rising (export.gov
2017) Like most of company, Ferrero SPa use social media such as Facebook and Instagram to
communicating, advertising, and promotion. This helps strengthen the relationship between the company
and the customers.

Chocolate is a luxury food product so it is a must to have a mass promotional effort to encourage
and convince the customers to buy our new chocolate product. Therefore, the current technology in
Malaysia has many important meanings in the chocolate industry and the industry must adapt the
technology in question to tempt greater market share.

Besides, ​over the last 40 years, Malaysia has invested in infrastructure development.​The
Malaysia’s persistent drive makes the infrastructure of Malaysia ranks No. 2 in Asia and No.5 globally for
top infrastructure investments (Damodaran 2016). Last year, government has spends billions of ringgit for
infrastructure development in order to prepare the way of Malaysia to provide a lot of needed support
system to boost the economy. The project list includes MRT 2 and Pan-Borneo Highway which just newly
launched. Also, the new infrastructure that government doing now is High Speed Rail (HSR) that link
Malaysia and Singapore in short travel time which estimated in 90 minutes compare with driving that need
4 hours to reach Singapore (Nathan 2018). ​This new infrastructure can close the gap in the availability of
goods and good prices for rural people against the urban population as well as the convenience for the
tourism to have an access to use the transportation. Also, it will benefit the importer and exporter to do
efficiently in exporting or importing their good as it will cut down the time and cost.

Environmental 
According to Metro News, Malaysians use more than 31 million plastics every day. If people never
solve and act toward this issue, it may take hundreds of years to decomposed a plastics. Luckily, most of
the people and company take this issue as an important matter to be solved such as Nestle and Ferrero
sPa.

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 The environmental issues for Ferrero sPa is the packaging that is hard to be renewable, but the
company has solved it to reducing the environmental carbon footprint by using paper that only source from
sustainable certified chains and because of this “Pilot project“ was launched to assess renewable materials
that could be used for wrappings for the product so it would not direct contact with the product itself (UN
Global Compact 2012).

Other plans is Ferrero will source the new cocoa volumes under Fairtrade’s cocoa program to
supporting farmers who grow cocoa beans to make sure that the cocoa beans is done sustainably as
farmers supplying Ferrero its sugar and cocoa will benefit from price premium and projects to prevent child
labor (Nieburg 2016).

In addition, it is important to analyze the climate in Malaysia as it can be an opportunity to create

new product that is best suited for the market. As the climate in Malaysia is hot, it would be beneficial in
Ferrero product to have some cold impact on human health which the product can be useful in hot weather.
Legal 
In Malaysia, there is a generally accepted set of rules and standards for healthier and safer food
products to be fulfilled in the company's chocolate products. Legal matter which impact on Ferrero sPa is
the requirement to provide details for import permits or licenses as Malaysia restricts open trade for some
product to reduce imports. The other matter is the halal certification of the importation of food especially
chocolate in order to not repeat the same case as Cadbury so the chocolate company must have a halal
certification for their product which has been approved by Malaysian authorities to confirm is halal and
acceptable for eat by Muslims (Export.gov 2016). In additions, the other matter is to provide Ingredients
and calorie details to help consumers by making a choice based on fat content as most of the consumers
are becoming health concerns. This concern about obesity may also lead to a reinforcement of the
regulatory law such as sugar tax. However, the minister had announced that for some company can be
exempted if they are proven that they used less sugar in their product (Wan et al 2018).
Neglecting such legal considerations can cause irreparable damage to the industry and which
should not be practice of the chocolate company as the Malaysian government does not provide flexibility
for any industry that gives little consideration to regulations and laws.
 
3.4 Practical point of view 
There will be potential problems that might occur during the process. First of all is the logistical
issue of delivering such as lorry breakdown. Due to office and warehouse based in Shah Alam and the
delivering have to be around Sunway and Subang, we will face a lot of traffic jams and this could affect our
reputation as if the deliver is late. Moreover, in any case in the delivering the lorry breakdown, it also could
increase our expenses which have to repair it or even towing and due to that, it would met our expected
delivering time.

Next, in term of economy, there are few possible “problem” that should put into account. First of all,
due to Malaysia focus becoming first world country by 2020, which is two years from now, the government
might increase or tighten border tax and tariff or even increase the Good & Service Tax (GST) which the
government already announce on 1st APR 2015 for GST is that most of the product and services will be

13
 charge 6% for GST Tax. if the Country going on first world country, the government might have to increase
the GST tax which might affect our financial.

Other than that, as if we going into supermarket and big stores, we have to compete with other
brand for product positioning in the store rack. We might have to pay extra to the store branch to get a very
nice positioning such as beside counter or “eye-level” position. Again, this might affect our financial. Other
than that, to get good positioning, we have to stay active thinking for getting competitive advantage towards
other competitors in the supermarket or big stores to get good positioning.

 
 
 
 
 
 
 
4.0 BUSINESS CASE STAKEHOLDER & STAKEHOLDER ANALYSIS 
STAKEHOLDE THEIR INTEREST  WHAT PROJECT  PERCEIVED  ACTIONS TO TAKE 
R  FROM PROJECT  NEEDS FROM  ATTITUDES AND/OR   
THEM  RISKS 

MANAGEMENT  -Product and image -Takes responsible -Fail to communicate -having a consistent meeting
stability to the plan and with others and may to keep remember of the
-High sales & reach management lead to failure mission
sales target -Being a good leader -Lack of leadership -Perform a good attitude and
-Profit and focus on keep communicate with
mission others to prevent
miscommunications

EMPLOYEES  -Safety, benefits, job -Good attitude -Conspiracy -Daily briefing

security and even -stick to job scope -Bad attitude ie. late -Keep track on employees
motivations and maintain quality -Delay tasks job and tasks
-Good workplace job -Give incentives as it would
environment -Loyalty enhance motivations

CUSTOMERS  -High quality with -comments and -No Interest that the -Meet their expectations
lower price feedbacks from customer shown want -Provide the best quality
-Meet their customers to buy the product. Chocolate brand also the
expectations in term -Increase profits and -Not loyal toward the best customer services
of volume and taste loyalty from the brand
customers -Reject the product

14
SUPPLIERS  -Always pay on time -Provide high quality -The product might not -keep communicate and keep
without fail services meet the quality track on every batch that
-Easy -Reliability requirements been delivered.
communications -Constant delivery -late delivery -Ensure the payment is not
on time late to avoid dissatisfaction

COMPETITORS  -Ensure Kinder have -As benchmark and -The competitors can -Research and recognise
different quality produce better attract more customers their strength and weakness
product product that can in term of marketing -Outperform and find our
outperform them and product quality competitive advantages
-Lower our profits
 
 
 
 
   

15
5.0 PROGRAM LOGIC MODEL 

 
 
 

16
 
   

17
6. RESOURCES 
6.1Human Resources 
Total  Total 
N Price Per 
Resources  Quantity/Period  Cost  Cost  Appendix 
o  Unit (RM) 
(RM)  (USD) 
Human Resource 
1 Accountant Executive 2 person/1 years 38,771 77,542 20,068 10.3.5.1
2 person/ 3
2 Marketing Executive 40,722 81,444 21,077 10.3.5.2
years
3 Business Development Executive 1 person/3 years 38,943 38,943 10,078 10.3.5.3
4 Driver 1 person/3 years 21,000 21,000 5,435 10.3.5.4
3 person/ 3
5 Warehouse Worker 22,164 22,164 5,736 10.3.5.5
years
10 person/30
6 Promoter 1,200 12,000 3,106 10.3.5.6
days
Total   162,800  253,093  65,500  -
 

6.2 Physical Resources 

 
 

18
 
7.0 Gantt Chart Summary 
Our Gantt Chart is attached in the excel document and it shows the tasks which is led by our project
manager and complete with the help of the project team members. This Gantt Chart last for 3 years which
starts from 1​st of July 2018 and ends at 1​st July 2021. Each member is given responsibility on every sub
task which involves research about the problem faced by Kinder Malaysia, CSR and solution to resolve the
problem. At the beginning of the progress, suppliers will be contacted to form an import agreement.
Moreover, we also decided to start our CSR program which is the Kinder Sport Carnival. After that, we will
start to sell our products in all outlets in Malaysia. Lastly, when 3 years’ time is over and the project is able
to operate smoothly, we will be handing over this project to the planning and marketing department of
Kinder Malaysia Sdn. Bhd.

8.0 Budget 

Income and Expenditure Statement for the year 2018 to 2020 

 
2019  2020  2021 

$180,00 $185,40 $190,96

Sales 0 0 2
$154,58 $153,98 $158,07
(-) Total Expenses  0 4 4
Net Profit  $25,420  $31,416  $32,888 

Based on the budget summary, the net profit that our company will gain in 2019, 2020 and 2021 is ​$25,420, 
$31,416 and ​$ 32,888 respectively. The Return on Investment (ROI) in 2019, 2020 and 2021 is ​16.44%, 
20.42% and ​20.81% respectively. In order to get a higher return on investment in the following year, our
company will negotiate with our transporter, the owner for warehouse and office to lower down the
expenses, hence our company can increase the net profit in the following year.

Yea Percentag
r [(Investment Gain - Investment Cost) ÷ Investment Cost] * 100 e
2019 (USD 180,000- USD 154,580) ÷ USD 154,580 *100 16.44 %
2020 (USD185,400- USD 153,984) ÷ USD 153,984 * 100 20.42%
2021 (USD 190,962 - USD 158,074) ÷ USD 158,074 * 100 20.81%
  

19
Total Return on Investment for three years  

=16.44% + 20.42%+20.81%

=57.67%

 
 
 
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22
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23
Payscale 2018, Marketing Executive with Marketing Communication Skills in Shah Alam Salary (Malaysia),
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25
 

 
 
 
 
 
 
 
 
 
 
 

10.0 APPENDICES 
10.1 THE PROJECT TEAM 

Muhammad Aqmal Nurhakim B. Dato’ Mohd Kamari 

As the leader in the team, Aqmal is in charge in operation executive. Most of his job scope is to contact
suppliers and sellers and also the process of the project. He was graduated in Victoria University and major
in Management and Innovation. Since then, he already worked in some of the companies which helps him
to enhance his leadership skill. Along the project progress, as leader he knows how to motivate his
colleague and assign tasks. With his skills, it helps to smoothen the process.
Chan Shu Yen 
Chan Shu Yen is graduated from Victoria University, Malaysia with Bachelor of Accounting (Hons). This
shows that she already learns all the way on how to prepare a good and quality financial statement for the
company. Besides that, she also has different kind of working experiences such as promoter and usher.
This will improve her communication skills as she has to deal with any different type of customer that
approach to her. Moreover, this will also add value to the company as she had been serving different type
of consumer for the past few years and can know their preferences easily.

26
Salsa Fania 
Salsa Fania is an accounting executive in the project team. She was graduated from Victoria University
with a degree in accounting. Based on her experience working in Cadbury, she involved in multiple projects
which make her has the expertise to deal with client and handle account issues. She knows the important
of teamwork so she can cooperate well with Shu Yen in the accounting team. Therefore, she is eligible for
her position because her responsibility was to calculate and manage the revenue needed to carry out the
CSR project and to have a deal with the Supermarket owner to position the product in the market.
Tan Wee Chong 
Tan Wee Chong is the marketing manager for this project. He was graduated from Victoria University,
Malaysia with a Bachelor of Degree (Hons) in Marketing and International Trade. He has broad
understanding of conducting global business which support this project into a success. He has working
experiences as a supervisor in a restaurant that further emphasize his practical skills in understanding
consumer behaviour in constructing a profit strategy approach based on marketing point of view. His
contribution will help the company in conquering new market in the trial of penetrating new product in a new
global market.
Fernando Tannoto 
Fernando Tannoto is the marketing manager for this project. He was graduated from Victoria University
with a degree in Marketing and International Trade. Based on his experiences from working for 3 months in
Verona Boutique 2 years ago, it helps him to enhance the teamwork skills that will provide a great support
for Wee Chong in the marketing team. Therefore, he is suitable in his position as he has the responsibilities
to market the products in the whole Malaysia and also able to provide critical thinking skills that can help
the project into a success.

10.2 BUSINESS CASE METHODOLOGY 

As project management is curial to ensure the project is keep on track and enhance the success of
the project. There are differences between project and productions, project are focus on unique outputs,
temporary and have to follow several phases while productions are on-going, repetitive and it has the
objective to sustain business. All project that been carried out by an organization or company will have a
beginning and ending and project management is playing an important role in this to ensure the project is
run smoothly. There are phases that are called Project Life Cycle that have to be followed in order to
ensure the smoothness and success of the project. As for the step which are initiating, planning, executing
and closing. This is the image of the project life cycle. 

27
  

Initiation 
As for step one, an effective initiation is important to start a new project. It requires sees in all
aspect of the project before going further ahead. It requires a hard look judgment from the project
management especially the project manager. Without this, the chance of failure is higher. During the phase
of initiation, objective of the project is needed to be identified. With this, it can be either business problem or
opportunity. Issue of the feasibility is addressed such as “can we do the project?’ and “should we do the
project?”. According to this project, the team find out there are hush opportunity of expanding the product
which is Kinder Chocolate with Cereal from Kinder Company to Malaysia market. The opportunity saw due
to the idea of cereal as one of the ingredient which is for breakfast. According to the fact that huge rate of
population in Malaysia tend to skip their breakfast due to rush and lack of time. Each team member has
been allocated with several specific task in according to their profession to complete the project. The whole
stakeholder of the plan is taken into account before we start the business as for example the target market
(customer), employee, management, suppliers and others to ensure the business plan will run smoothly.
  
 
 
 
Planning 
Planning a business case is very crucial for a company to achieve success in the project. In order
for planning to be working, the management of the team need to take account of every details and assign
the work toward team members according to their profession and to ensure the team are fully cooperates.
Other than that, team management also requires to ensure the aims and objectives of the project are met.
With implementing the idea of Gantt Chart, it will make the planning more efficient and effective due to
every detail planning of every task are noted in the Gantt Chart. This idea will help every team member to
check their progress and make sure the project is “on-track”. Furthermore, Gantt Chart will help the team to
ensure to deal with suppliers, source and also marketing. Other than that, budgeting also should be well

28
managed as it is also important as part of the plan. Budgeting will help the management team to keep on
track on costing of the project. 
Implementation 
As for the next phase is implementation. This is the phase when the actual work is performing. This
phase also comes with the high risk due to lot of details should be carefully monitored. A large of
stakeholders involve along the process. Gantt Chart is playing a huge part in this phases as the
management team is to ensure every detail is on track and ensure the project run smoothly. The process
need to monitor and control few aspects which are time management, Cost management, Quality
Management, Charge Management, Risk, and others.
Closing 
As for the last phase is called closing or also known as termination process. This phase is where
the project comes to the end and has been completed. This phase include disbandment of the project team
and evaluate either the project met the objective. It is very important to learn any negative outcome during
the process and improve.
 

10.3 OTHER APPENDIX 

10.3.1 Currency 

Currency of USD to MYR 

29
Source: ​http://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=MYR

10.3.2 Inflation Rate 

Based on the table above, the expected inflation rate for Malaysia at 2019 and 2020 is 3%. Thus, our
company will increase the cost of goods sold and all the expenses by 3 %.

Source: ​https://www.statista.com/statistics/319033/inflation-rate-in-malaysia/

10.3.3 Cost of Goods Sold 

10.3.3.1 Price for material

30
Price Per Unit
Exchange rate of US$ to RM: 0.10*3.864= RM 0.3864
Source:​https://www.alibaba.com/product-detail/Kinder-chocolate-with-cereals_50034590428.html?spm=a2
700.7724838.2017005.1.69633cfao257sT
 

10.3.3.2 Quotation for Shipping Costs from Copenhagen to Klang, Malaysia

10.3.3.3 Shipping Costs from Copenhagen to Klang, Malaysia 

31
The weight for the Kinder Chocolate Bar with Cereal is 0.043 kg. The ocean freight stated in above is ​MYR 
7,552​ which is for 10,000 kg. The total Kinder Chocolate Bar with Cereal which are imported from
Copenhagen, Denmark to Port Klang, Malaysia is 10,000 kg/0.043 kg =​232,558​ Bars

10.3.3.4 Import Duties 

Based on the table above, the Import Duties that the Malaysian Customs will charge for Chocolate Bars is
15%.

32
Source:
http://www.customs.gov.my/ms/pg/pg_gazz/P.U.(A)%205%20-%20Perintah%20Duti%20Kastam%202017.
pdf

10.3.3.5 Cost of Goods Sold 

One Year 

Material Cost 

Weight per Bar = 0.043 kg

10,000 kg / 0.043 = 232,558 Bars

232,558 Bars * USD 0.10 = ​USD 23,256

USD 23,256 * 3.864 = ​MYR 89,861

Import Cost 

RM 89,861 * 15% = ​RM 13,479.15

Shipping Cost 

20' Footer Reefer Container by Ocean Freight = ​RM 7,552

First year total cost of goods sold (Material Cost +Import Duties + Shipping Cost) 

MYR 89,861+RM 13,479.15 + RM 7,552= ​RM 110,892

RM 110,892/ 3.864 = ​USD 28,699 

Second year total cost of goods sold (Material Cost +Import Duties + Shipping Cost) 

MYR 89,861+RM 13,479.15 + RM 7,552= ​RM 110,892 

RM 110,892*1.03 (Inflation Rate) =​ RM 114,219 

RM 114,219 / 3.864 (Currency Rate) =​ USD 29,560 

Third year total cost of goods sold (Material Cost +Import Duties + Shipping Cost) 

RM 114,219 *1.03 (Inflation Rate) = ​RM 117,646 

RM 117,646 / 3.864 (Currency Rate) =​ USD 30,447 

33
 

10.3.4 Markup Price 

10.3.4.1 Reference price for another competitor with similar product that are selling at Tesco 

Based on the appendix above, the price of the other competitor sell in the shopping mall is RM 2.99. So in
order to compete with the other competitor, our company decides to sell our product with the same price
with the high quality which is USD 0.773 per Bar.

The sale price in USD = RM 2.99 / 3.864 (Currency Rate)

= ​USD 0.773 

Source: https://eshop.tesco.com.my/groceries/en-GB/products/7073594245

34
 

10.3.4.2 Sales Revenue 

Year 2018 

232,558 Bars * RM 2.99 = ​RM 695,348.42

RM 695,348.42 / 3.864 (Currency Rate) = ​USD 179,956

Year 2019 

Price per bar after inflation rate

RM 2.99 + 3 % = RM 3.0797

232,558 Bars * RM 3.0797 = ​RM 716,209 

RM 716,209 / 3.864 (Currency Rate) = ​USD 185,354

Year 2020 

Price per bar after Inflation Rate

RM 3.0797 + 3% = RM 3.172

232,558 * RM 3.172 = ​RM 737,674 

RM 737,674 / 3.864 (Currency Rate) = ​USD 190,909

35
 

10.3.5 Human Resource 

Justification of Labor Salary 

10.3.5.1 Accounting Executive 

Total Salary for 2 Accounting Executive in a year in USD = (RM 38,771 * 2 Persons) / 3.864 (Currency
Rate) = ​USD 20,068

Source:​https://www.payscale.com/research/MY/Job=Account_Executive/Salary/6c182297/Shah-Alam-Acco
unting

10.3.5.2 Marketing Executive 

36
Total Salary for 2 Marketing Executive in a year in USD = (RM 40,722 * 2 Persons) / 3.864 (Currency Rate)
= ​USD 21,078

Source:​https://www.payscale.com/research/MY/Job=Marketing_Executive/Salary/5b408b4d/Shah-Alam 
10.3.5.3 Business Development Executive 

Total Salary for 1 Business Development Executive in a year in USD = RM 38,866/ 3.864 (Currency Rate)

= ​USD 20,068

Source: https://www.payscale.com/research/MY/Job=Business_Development_Executive/Salary
 
10.3.5.4 Delivery Driver 

37
Total Salary for 1 Delivery Driver in a year in USD = RM 21,000/3.864 (Currency Rate)

= ​USD 5,435

Source:​https://www.payscale.com/research/MY/Job=Delivery_Driver/Salary

10.3.5.5 Warehouse Worker

Total Salary for 1 Warehouse Worker in a year in USD = RM 22,164 / 3.864 (Currency Rate)

= ​USD 5,736

Source:​https://www.indeed.com.my/salaries/Warehouse-Worker-Salaries

38
10.3.5.6 Promoter 

Total Salary for 10 Promoter with 8 hours working daily for 30 days = (RM 1,200 *10 Persons) = ​RM 12,000
Total Salary for 10 Promoter in USD = RM 12,000/ 3.864 (Currency Rate)
= ​USD 3,106
Source:​https://www.payscale.com/rcsearch.aspx?category=&str=promoter&CountryName=Malaysia&Sourc
eId

10.3.5.7 Total Salary & Wages for All Employee  

N Appendi
Job Position      Year 1  Year 2  Year 3  Total 
o  x 
    No of  Duration  Salary  Salary plus  Salary plus  Salaries   
Employe for 
      (RM)  Increment  Increment   
e  Three 
          2.7 of  2.7 % of  Years   
          Salary (RM)  Salary (RM)  (RM)   
Account
119,482 10.3.5.1
Executive 38,771 + 2.7% 39,818 + 2.7 %
X &10.3.6.1
1 with 2 3 Years 38,771  =​39,818 =​40,893 2 Person
=​238,96
Accounting
4
Skills
Marketing
125,493 10.3.5.2
Executive 40,722 + 2.7 % 41,821 +2.7 %
2 2 X &10.3.6.1
with 3 Years 40,722  =​41,821 =​42,950 2 Person

39
 =​250,98
Marketing
6
Skills
Business
38,943 + 2.7 % 39,994 + 2.7 % 10.3.5.3
3 Development 1 3 Years 120,011 
38,943  &10.3.6.1
Executive =​39,994 =​41,074

3 Years 21,000  21,000 + 2.7 % 21,567 +2.7 %

4 Driver 1 64,716  10.3.5.4
=​21,567 =​22,149
&10.3.6.1

10.3.5.5
Warehouse 3 Years 22,762 + 2.7 %
5 1 22,164  22,164 + 2.7 % 67,302  &10.3.6.1
Worker =​22,762 = ​23,377

10.3.3.6
30 days 1,200 x
1,200  &10.3.6.1
6 Promoter 10 - -
for 8 10
Hours Person
=12,000 
Total Salaries and Wages for All Employees for three years in RM
238,964 + 250,986 + 120,011 + 64,716 + 67,302 + 12,000 =​753,979 
Total Salaries and Wages for All Employees for three years in USD

739,979 ÷ 3.864 (Currency Rate) = ​191,506

10.3.6 Other Cost add on to labor cost

10.3.6.1 Salary Increment 

Based on the statement above, our company decided to increase the salary for each employee by 2.7 %
starting from 2019.

40
Source:​http://www.humanresourcesonline.net/salary-increases-for-2018/

10.3.6.2 Superannuation (EPF) 

For employee wages which are less than RM 5000, the employer has to contribute 13 % of the wages to
EPF.

Source:​http://www.nbc.com.my/epf/what-is-epf-kwsp.html

10.3.6.3 Total EPF Contribution for All Full- Time Employees 

Year 1 Year 2 Year 3 Total

No of 13% of 13% of 13% of EPF
N Employe
Job Position Salary to Salary to Salary to Contribution Appendix
o e
EPF EPF EPF for Three
(RM) (RM) (RM) Years (RM)
Account
15,532 X
38,771 X 39,818 x 40893 x
Executive 2 Person 10.3.5.1 ,10.3.6.1
13% 13% 13%
1 2 = 31,064 & 10.3.6.2

41
 with = 5,040 = 5,176 = 5,316
Accounting
Skills
Marketing
40,722 x 41,821 x 42,950 x 10.3.5.2, 10.3.6.1
Executive 16,315 X
13% 13% 13% & 10.3.6.2
2 2
with = 5,294 = 5,437 = 5,584 2 Person
Marketing = 32,630
Communication
Business
38943 X 39,994 X 41,074 x 10.3.5.3, 10.3.6.1
3 Development 1 15,602
13% 13% 13% & 10.3.6.2
Executive = 5,063 =5,199 =5,340

21,000 X 21,567 x 22,149 X 10.3.5.4,10.3.6.

4 Driver 1 13% 13% 13% 8,413 1
= 2,730 = 2,804 = 2,879 & 10.3.6.2

22,164 x 22,762 X 23,377 X 10.3.5.5, 10.3.6.1

Warehouse 8,879
5 1 13% 13% 13% & 10.3.6.2
Worker = 2,881 = 2,959 = 3,039

10.3.6.4 Social Security Organization (SOCSO) 

42
Company has to contribute 1.75% based on the employee’s salary every month.

Source: ​http://www.nbc.com.my/socso/socso-table-rates-jadual-caruman-socso.html

43
10.3.6.5 Total SOSCO Contribution for All Full- Time Employees 

Year 1 Year 2 Year 3 Total

No of 1.75 % of 1.75 % of 1.75 % of SOSCO
N
Job Position Employee Salary to Salary to Salary to Contribution Appendix
o
SOSCO SOSCO SOSCO for Three
(RM) (RM) (RM) Years (RM)
Account 2,091 X
10.3.5.2,
38,771 X 39,818 x 40893 x
Executive 2 Person 10.3.6.1 &
1.75% 1.75% 13%
1 2 10.3.6.4
with 678 697 716 4,182
Accounting
Skills
Marketing 2,197 x
10.3.5.2,10.3.6.
41,821 x 42,950 x
Executive 40,722 x 2 Person 1
1.75% 1.75%
2 2 1.75% &10.3.6.4
with 713 732 752 4,394
Marketing
Communication
Business
10.3.5.3,10.3.6.
39,994 X 41,074 x
3 Development 1 38,943 X 2,101 1
1.75% 1.75%
1.75% &10.3.6.4
Executive 682 700 719

10.3.5.4,10.3.6.
21,567 x 22,149 X
21,000 X 1
4 Driver 1 1.75% 1.75% 1,133
1.75% &10.3.6.4
368 377 388

10.3.5.5,10.3.6.
22,164 x 23,377 X
Warehouse 22,762 X 1,145 1
5 1 1.75% 1.75%
1.75% &10.3.6.4
Worker 388 398 409

44
10.3.7 Office Equipment & Fixtures 
10.3.7.1 Computer 

 
 
Total Cost for 5 Unit of Computer in USD
(RM 1,799 * 5) /3.864 (Currency Rate) = USD 2,328
Source:
https://shopee.com.my/HP-Slimline-450-134D-Desktop--P4L54AA-UUF1--%2B-HP-20KD-19-45IN-LED-Mo
nitor-i.592106.732045015?gclid=Cj0KCQjw-uzVBRDkARIsALkZAdlxaSQe2MzrkiHDL7113srBJipB-CuL9B
MrvHtcpsMavQthuddjZnUaAuKvEALw_wcB

10.3.7.2 Office Table 

45
Total Unit Price= RM 838 + RM 103.50 (Transportation Charges) = ​RM 941.50

Total 5 Units of Office Table in USD = (RM 941.50 * 5 Units) / 3.864 (Currency Rate) = ​USD 1,218

Source:​https://www.lazada.com.my/products/office-table-tmb99-with-fixed-drawers-i140012133-s160
390489.html?spm=a2o4k.searchlist.list.1.78bf225cA6CXUy&search=1
10.3.7.3 Office Chair

Total Unit Price = RM 98 + RM 12 (Transportation charges) = ​RM 110 

Total 5 Unit of Office Chair in USD= (RM 110 * 5 Units) / 3.864 (Currency Rate) = ​USD 142

Source:​https://www.lazada.com.my/products/ff-cozy-chic-swivel-height-adjustable-full-mesh-office-chair-wit
h-chrome-leg-i108130893-s110328678.html?spm=a2o4k.searchlist.list.12.37e06f032RuFcA&search=1

10.3.7.4 Telephone 

46
Total 5 Unit of Telephone in USD= (RM 37 * 5 Units) / 3.864 (Currency Rate) = ​USD 48

Source :
https://www.lazada.com.my/products/portable-corded-telephone-phone-pause-redial-flash-mute-mechanica
l-lock-wall-mountable-base-handset-for-house-home-call-center-office-company-hotel-i230732091-s299288
151.html?spm=a2o4k.searchlist.list.5.220f2733NnE441&search=1

10.3.7.5 Printer with Scanner

Price of Printer in USD = RM 948.57 / 3.864 (Currency Rate) = ​USD 245 

47
Source:
https://www.lazada.com.my/products/epson-expression-home-xp-430-wireless-color-photo-printer-with-sca
nner-and-copier-i219898595-s279115550.html?spm=a2o4k.searchlist.list.11.15ac6bc6zcwhvw&search=1

10.3.7.6 Air Conditioner 

Price Per Unit: RM 719.90 + RM 59.00 (Transportation Cost) = ​RM 778.90

Price of Air Conditioner in USD = RM 778.90 / 3.864 (Currency Rate) = ​USD 202

Source: 
https://www.lazada.com.my/products/york-r410a-ysl3f10aasywm3f10cas-10hp-wall-split-air-conditioner-i21
7755692-s275821359.html?spm=a2o4k.searchlist.list.7.e34560f4xetfVS&search​=
10.3.7.7 Water Dispenser (Hot & Warm)

48
Price of 2 Water Dispenser in USD = (RM 209 * 2 Units) / 3.864 (Currency Rate) = ​USD 108

Source:
https://shopee.com.my/Pensonic-PWD-700-Water-Dispencer--Hot---Warm--i.20221216.720673144?gclid=
Cj0KCQjw-uzVBRDkARIsALkZAdluI5oVXrow8GnpD1BTijS8o6pYvgDQRKyCWnDvlXZ3pALXmzWL5mMa
AqbzEALw_wcB

49
 

10.3.8 Utility Expenses 

10.3.8.1 Electricity  

Our company assumes that the electricity expenses for warehouse and office is RM 612.43 / 3.864
(Currency Rate) = ​USD 158​.

Source: https://www.tnb.com.my/residential/billing/#bill-calculator

10.3.8.2 Water 

The water expenses for warehouse and office is estimated to consume 40 m3 which cost RM 83.85 / 3.864
(Currency Rate) = ​USD 22.

Source: https://www.syabas.com.my/consumer/water-bill-calculate-water-bill-consumption

50
 

10.3.9 Occupancy Cost 

10.3.9.1 Office Rental 

First Year Rental  

RM 3,000* 12 months = ​RM 36,000

RM 36,000 / 3.864 (Currency Rate) = ​USD 9,317

Second Year Rental 

(RM 3,000+3 % (Inflation Rate) = RM 3,090

RM 3,090 * 12 months = ​RM 37,080 

RM 37,080 / 3.864 (Currency Rate) = ​USD 9,596 

Third Year Rental 

(RM 3,090+ 3 % (Inflation Rate) = RM 3,183

RM 3,183 * 12 months = ​RM 38,196

RM 38,196 / 3.864 (Currency Rate) = ​USD 9,885

51
Source:
https://www.iproperty.com.my/property/kota-kemuning/office-lot-kota-kemuning-anggerik-vanilla/rent-62123
07/?utm_source=mitula&utm_medium=cpc&utm_campaign=mitula

10.3.9.2 Warehouse Rental 

First Year Rental  

RM 4,000* 12 months = ​RM 48,000

RM 48,000 / 3.864 (Currency Rate) = ​USD 12,422

Second Year Rental 

(RM 4,000+3 % (Inflation Rate) = RM 4,120

RM 4,120 * 12 months = ​RM 49,440 

RM 49,440 / 3.864 (Currency Rate) = ​USD 12,795 

Third Year Rental 

(RM 4,120+ 3 % (Inflation Rate) = RM 4,244

52
RM 4,244 * 12 months = ​RM 50,923

RM 50,923 / 3.864 (Currency Rate) = ​USD 13,179

Source:
https://www.iproperty.com.my/property/shah-alam/sentral-27-seksyen-27-shah-alam-2-storeys-link-factory/r
ent-6163726/

10.3.10 Communication and System 

10.3.10.1 Telephone Expenses 

Our company estimated that we will make 500 calls every month.

500 call * RM 0.08 = RM 40

Telephone Expenses in USD = RM 40 / 3.864 (Currency Rate) = ​USD 11

Source: ​https://www.tm.com.my/Home/voice/access/Pages/local-call.aspx

10.3.10.2 Internet Expenses 

53
Internet Expenses in USD = RM 199 / 3.864 (Currency Rate) = ​USD 52

Source: https://unifi.com.my/unifi-en/ijoin/product-details.page?productId=Biz%20Lite%2010Mbps-Bonanza

10.3.11 Advertising Cost 

10.3.11.1 Facebook

Our company decided to use Facebook to advertise our product which cost RM 10 per day for one month.

RM 10 * 60 days = RM 300

RM 300 / 3.864 (Currency Rate) = ​USD 156

Source: ​https://www.facebook.com/EngTechWeek/

54
 

10.3.12 Stationery  

10.3.12.1 Ball Pens Ink Gel Pens 

Source:
https://www.lazada.com.my/products/12-pcs-05mm-rolling-ball-pens-ink-gel-pens-for-officeschoolhome-bla
ck-i180220331-s215844086.html?spm=a2o4k.searchlist.list.4.5fb7f98evH88G8&search=1

10.3.12.2 Puncher  

55
Source:
https://www.lazada.com.my/products/deli-0107-puncher-cap25s-i107990821-s110130547.html?spm=a2o4k
.searchlist.list.7.24803ddfTnClzi&search=1

10.3.12.3 Ring File 

56
Source:
https://www.lazada.com.my/products/abba-2d-ring-file-50mm-capacity-for-a4-paper-item-no-sa502t-4-pc-i1
7978789-s22142133.html?spm=a2o4k.searchlist.list.61.dec05fc6Fo4Acv&search=1

10.3.12.4 Stapler 

Source:
https://www.lazada.com.my/products/max-hd-50-stapler-i124382811-s136812268.html?spm=a2o4k.searchl
ist.list.76.4a1fcf43A5TH1v&search=1

10.3.12.5 Max Staples 10-1M 

57
Source:
https://www.lazada.com.my/products/max-staples-10-1m-box-of-20s-i109962208-s112678729.html?spm=a
2o4k.searchlist.list.43.492363f1QQKbap&search=1

10.3.12.6 Highlighter Pen 

Source :
https://www.lazada.com.my/products/24pcs-x-fullmark-fluorescent-highlighter-pen-chisel-tip-pink-yellow-gre
en-orange-i140650545-s161462664.html?spm=a2o4k.searchlist.list.10.47205f98kY4lQF&search=1

10.3.12.7 Calculator

58
Source:
https://www.lazada.com.my/products/canon-ls-88hi-iii-green-desktop-8-digits-calculator-i213611203-s2691
51475.html?spm=a2o4k.searchlist.list.9.18cf2fe6JFkBAl&search=1

10.3.12.8 A4 Paper 

Source:
https://www.lazada.com.my/products/double-a-a4-copier-paper-everyday-500-sheets-10-reams-i18172232
0-s218136350.html?spm=a2o4k.searchlist.list.9.40f24f04es0JOf&search=1

 
 
 
 

59
 
10.3.12.9 Liquid Paper 

Source:
https://www.lazada.com.my/products/paper-mate-liquid-paper-2-in-1-correction-fluid-22ml-12-count-i19935
1627-s245214390.html?spm=a2o4k.searchlist.list.11.723f9334YwJ0Rp&search=1

 
10.3.12.10 Total Cost for One Year Stationery Expenses 
Unit Per  Total  Total Price 
No  Description  Price (RM)  Quantity Price (RM)  (USD)  Appendix 
1 12 Pcs 0.5mm Ball Pens 16.6 6 99.6 26 10.3.12.1
2 Deli 0107 Puncher Cap 25's 17 6 102 26 10.3.12.2
3 ABBA 2D Ring File-50mm 58 4 232 60 10.3.12.3
4 Max HD-50 Stapler 28.5 1 28.5 7 10.3.12.4
Max Staples 10-1M Box of
5 20's 28 1 28 7 10.3.12.5
6 24 pcs x Highlighter Pen 45.94 1 45.94 12 10.3.12.6
7 Canon LS-88Hi III Calculator 16 5 80 21 10.3.12.7
Double A A4 Paper-500
8 Sheets 159.4 1 159.4 41 10.3.12.8
Paper Mate Liquid Paper 2 in
9 1 155.17 1 155.17 40 10.3.12.9
Total 524.61 930.61 240

60
 
 
 
10.3.13 Transportation Expenses 
 
10.3.13.1 Cost of Motor Vehicle  

Source: ​http://www.nissan.com.my/vehicles/nv200/overview

10.3.13.2 Monthly Installment Payment for Motor Vehicle with Interest Rate of 3.5% 

61
The Down payment to Motor Vehicle is RM6,990 which is equal to USD 1,809 with currency rate of 3.864.
Monthly Installment in USD = RM 1,930.99 / 3.864 (Currency Rate)
=​USD 500
Source: ​http://www.nissan.com.my/tools/financialcalculator
10.3.13.3 Motor Vehicle Insurance

Motor vehicle insurance in USD = RM 2,847.8 / 3.864 (Currency Rate)

= ​USD 737
Source: ​https://www.oto.my/tool/car-insurance-calculator/

10.3.13.4 Road Tax 

Road tax in USD = RM 140 / 3.864 (Currency Rate)

62
 = ​USD 36
Source:​ https://www.oto.my/tool/road-tax-calculator/

 
10.3.14 Other Administrative Expenses 
10.3.14.1 Business Renewal 

Business renewal in USD = RM 60 / 3.864 (Currency Rate)

= ​USD 16
Source: ​http://www.ssm.com.my/en/sole/business-renewal

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