Group Assignment

Subject Name: Introduction to Entrepreneurship

Subject Code: UCS 2013

Lecturer’s Name: Ms Siti Nurakmar

Group Members:

Name ID Number
Siti Haleela Fazrin Bt Liyakathali 1231183002
Jaagan A/L Anandanrajah 1231184010
Prianka A/P Palaniappan 1231184016
Sarvesh Anand R Jegathesan 1232183001
Sharmila A/P Subramaniam 1231183016

Executive Summary
Japsass is a new business launched by a group of friends in the e-commerce industry in
pursuit of contributing to the society. This business plan lays out the basics and some clear
strategies for creating a long-term and profitable organization that strives to serve the
community. For this company, the initial outlay of investment was RM1,000,000. The
Japsass.my sell a wide range of goods, products and services under different categories, such
as automotive, business products and services, and many more among Malaysian people. The
service enables anyone to easily buy and sell in their own area, without the need for a
physical shop or a registered business.

The company was founded by Siti Haleela, Sharmila, Jaagan, Sarvesh Anand and Prianka in
May 2020. The headquarters of Japsass located in Kuala Lumpur. The Company is managed
and operated by Jaagan and Prianka. Sarvesh Anand is the brand ambassador of the Japsass
all over Malaysia. Siti Haleela and Sharmila Managing the finance, accounts, sales and
marketing department. The service is available in all the states in Malaysia.

Our major competitors are Mudah.my, Shopee, Carousell, Lelong and Lazada. Our plus point
when compared to other e-commerce sites is we sell the products in a very cheap price than
any other shops online. We also provide guaranty to customer in delivery the products in
good condition. If buyers received damaged goods, they can claim refund easily. This is our
main advantage because most of the sites online do not provide refund to customers who
received a damaged/counterfeit item.

Based on the size of the market, our first year revenue forecast is RM120, 000 a month. We
plan to rise around 25 percent annually, with the perfect environment. We do plan to bring in
more experienced industry leaders to help us expand tremendously.

Table of Content

2
 NO DETAILS PAGES

.
1. Industry Analysis 4
2. Company Description 5
3. SWOT Analysis 6-7
4. Market Analysis 7-8
5. Marketing Plan:

A) Marketing Objective 8

B) Marketing Method 9
6. Design & Development Plan:

A) Logo Design 10

B) Development Status & Task 10

C) Challenges & Risk 11

7. Operation Plan 12
8. Management Team & Company Structure 13
9. Financial Projection:

A) Income Statement 14

B) Ratio Analysis 15 - 16

C) Balance Sheet 16 - 17

Industry Analysis

Japsass is a part of the e-commerce industry. Malaysians already spend considerably more on
online purchases than many of their Southeast-Asian neighbours, but average ecommerce
revenue per user in the country is still barely a quarter of the global average. In Malaysia,
revenue in the e-commerce market is projected to reach US$4,179 million in 2020. Revenue

3
is expected to show an annual growth rate of 17.8%, resulting in a projected market volume
of US$8,059 million by 2024.

Major participants in this industry are Mudah, Shopee, Lazada, Carousell, Lelong, Zalora,
Amazon, and Ebay. Lazada is the most popular, and one of Malaysia 's strongest e-commerce
sites. Many of these companies have established themselves in the market, but as the top guns
have slacked in operation these last few years, there are still many rooms for newer
businesses. When consumers demand more timely service, they are searching for newer and
rising e-commerce companies.

A main success factor for this industry is the fact that the global economy is basically being
carried out virtually. One of the most tangible positives of e-commerce is the lowered cost. A
part of these lowered costs could be passed on to customers in the form of discounted prices.
It is not unusual for customers to travel long distances to reach their preferred physical store.
E-commerce allows them to visit the same store virtually, with just a few mouse clicks. Using
the information that a customer provides in the registration form, and by placing cookies on
the customer's computer, an e-commerce merchant can access a lot of information about its
customers.

Company Description

Company Name: Japsass

Founded: May 2020

4
Industry: E-commerce

Founders: Siti Haleela, Sharmila, Jaagan, Sarvesh Anand and Prianka

Services: Sells wide range of products online

No. Employee: 100

Company Vision: Japsass’s vision is to make peer-to-peer buying and selling a lifestyle.

Company Mission: Japsass’s mission is to inspire every person in the world to start selling
and buying to make more possible for one another, on a global scale.

Company Values:-We believe people are basically good

- We believe everyone has something to contribute

- We believe that an honest, open environment can bring out the best in

people

- We recognize and respect everyone as a unique individual

- We encourage you to treat others the way that you want to be treated

Company objectives:- To make their site known all over country

- To provide detailed information of products

- To provide best product support and customer service

- To Establish brand awareness and identity

SWOT Analysis of Japsass

- Strengths

For our company being a second hand shop, we will be allowing people to give us their old
goods in the form of money for a small return. For a lot more people sending us their
products, we'll be able to get a range more labels and different things that will give our store

5
people more choices when buying items. The rates would not be as high as if they were brand
new with the products being second hand. The reduced rates would draw first-time home
buyers who may want anything affordable to fill their house or families on low-income things
they need. Free delivery is one benefit that can be offered. It would not only financially
benefit our customers but also encourage them to buy more things without having to worry
about shipping it back to their home

- Weaknessess

Since it is a second-hand company, the products are not brand new and do not reflect the
same quality as new goods that affect the business. The level of satisfaction of purchasing the
items used is less compared to buying the new stuffs. There is no guarantee and thus the trust
of people in second-hand goods is not very high in the products. It is difficult to keep the
same amount of stock all the time as the manufacturer can vary, and also difficult to get the
required stock level in a specified time. Due to the uncertainty of market demand, the
unwanted goods may end up being stored in large quantities. Because of the small margin
between buying and selling, the company may not be very profitable. They can't set really
high prices because people aren't willing to pay high sums for second-hand products.

- Opportunities

This growing cost of living is seen as an opportunity to grasp, in terms of having a second-
hand company. More and more people are required to search for second-hand goods with
increasing living costs, because this is simply not an option and cannot afford brand new
household products. Bargain hunters are seen as a chance for a second hand store. Some
people are not necessarily in a place in which they have no choice but to look for a bargain
and buy second hand, there are some who prefer to look for bargains by full self-choice. This
is an opportunity for our company, as the type of service we run will cater to this target
bargain hunter’s audience. Vintage collectors are another target audience which is seen as a
chance for our company.

- Threats

Online shopping is growing every day and the convenience of shopping through online
platforms like Mudah and Lazada is another collection of threats to this company if they don't
use this line of sales as well. Only advertising in a newspaper will cost hundreds of dollars
and it doesn't mean it's going to work. Various approaches have to be used to make the

6
business known and these cost money. This should be remembered that not everybody likes
second-hand items and they have little interest in these kinds of shops and prefer newer
products when they purchase them. It may be helped if goods are purchased by new but not
perfect firms, and a good price can be sold and bought.

Market Analysis

Market analysis is an enormous piece of market research and a significant part of a strategy.
In this plan, business originators document their business thought recorded as a hard copy.
Over the span of the market analysis, a particular market is considered. With the assistance of
the results showed, companies or a business can recognize the chances and dangers of that
specific market.

- Target group

The target group based on our on-line second hand business application are teenagers, adults
and also elderly people who constantly keeps an eye on wanting to buy things which they
can’t maybe afford to. Those are our main target group as they would be the one keen to get
their thing they want in the possible best price. Apart from that, we go for both males and
females from the age range of as they equally have their own choices of stuffs to purchase.
The age group that we look for is from 23 to 55 years old. This age group would be the
suitable one as their need of items will be similar with the ones we have.

- Market needs

There have been lots of online business that sells various items with very good qualities. It is
truly difficult to fight among strong competitors but that is all what it means to have a strong
business platform to work on the right track. Our business market need would be the second
hand items consumers look for with a very reasonable price. This could also serve as an
opportunity for our target group as they can find the same material with a much lower price.
Our main competitors which we have in view are mudah.my, lelong.my and also carousell.

- Our positives comparing with other online business

7
The prices we produce are way cheaper than the other on-line websites applications give.
Other than that, we provide products with several variety and there would be extra choices for
the consumers to pick.

- Our drawbacks

Possibly limited opportunities to directly influence the display of a product.

Marketing Plan

Marketing objectives

- To provide visitors a personalized experience. Each of our visitors is a unique person who
interacts with our website in their own way. Technology now makes it possible for us to track
how people interact with our website and customize their experience on the site as they go.
We can suggest items that are similar or complementary to what they’re looking at, or deliver
up content on topics that are related to the piece they clicked on.

- To increase sales. For e-commerce businesses, this goal will remain consistent in all years.
For our website and business to thrive, we have to be making sales. The most important thing
we should look to is which marketing method working best for our business. At the end of the
day, our business is unique. Only we can work out what makes the most sense for us and our
audience. We should analyze our metrics and design our marketing plan to optimize doing
more of whatever is getting our sales now.

- To be partner with influencers. With so many blogs and social media channels for people to
move between on the web, getting our content in front of people is one of the biggest
marketing challenges we consistently face. One good tactic for reaching more people is
developing relationships with people and platforms that already have a large audience.

- To increase relevant traffic. Increasing traffic is probably a familiar goal for every e-
commerce business. For pretty much every website, accomplishing whatever it is meant to do
requires people visiting the site. But not all traffic is created equal. If our marketing is
bringing in traffic, but it is mostly made up of people who will never have a need for our
products or services, then it is not doing us much good.

8
Marketing methods

- Japsass does Social media marketing, which is the use of social media platforms to connect
with the audience to build our brand, increase sales, and drive website traffic. This involves
publishing great content on our social media profiles, listening to and engaging the followers,
analyzing our results, and running social media advertisements. The major social media
platforms are Facebook, Instagram, Twitter, LinkedIn, Pinterest, YouTube, and Snapchat.

- Japsass also provide free shipping, it is now an expectation of online shoppers as most of
the e-commerce site do not provide free shipping. The added cost of standard shipping can
easily dissuade buyers today from completing their purchase at checkout. The upfront cost of
offering free shipping may hurt at first, many merchants see a greater return with increased
purchases after offering the policy. To make sure customers are noticing our generous policy,
we highlight on our online store that we offer free shipping. Offering free shipping to lower
the overall cost of the item for buyers and incentivize the purchase.

- Search Engine Optimization is the process of making our site more visible in search
engines, so that we get more traffic from people searching for the products that available on
our site. Search Engine Optimization is not much more of an investment as we are already
creating new content regularly and it is well worth that extra investment we plan to make, to
make sure our site is properly indexed.

Design and development plan

Logo Design

9
The Japsass logo portrays the world of used products. There is a round element which
represents the world and there are some products inside it which means that Japsasss is a
world of used things. We have chosen blue colour as it symbolizes trust, loyalty, and
confidence. Similarly, Japsass is trustworthy, loyal and we make sure customer’s confidence
on our company by protecting them from any fraud, counterfeit or forgeries. The purpose of
our logo is to give a visual representation of our company brand.

Development Status and Task

We have a lot of development ideas in mind as our company is not yet even a year old. We
target to globalize our business across Malaysia and to be Malaysia’s number one e-
commerce site. Below are the development status that we are presently undertaking:

- Improving the site navigation and make our site more responsive.

- Improving the security of the website to protect customers from hackers.

- Increasing the site monitoring to ensure the site is running well and safe.

- Improving the customer service to help out customers who needs assistance.

- Improving the site design in order to attract visitors.

Challenges and risks

10
An absence of online identity verification is a biggest challenge for Japsass. When a visitor
visits our site and signs up, our portal is unaware of the customer, bar the information they
entered. Whether the customer information is genuine or not remains questionable. Cash-On-
Delivery (COD) purchases using an invalid or fake phone numbers or addresses can lead to
huge revenue losses for Japsass.

The process of product return and refund will be a big challenge for Japsass and also other e-
commerce sites. Most of the consumers will check the return policy before making a
purchase and they would shop more with retailers offering hassle-free returns. E-consumers
are clearly conscious of return and refund policies. When a product is returned, whether due
to a dissatisfied customer or damaged product, Japsass will suffer heavy loss in shipment and
reputation. Logistic and shipping costs have always been problematic to e-commerce sellers
delivering their product for free.

Japsass also will have struggle of competing on price and shipping. Online merchants
frequently compete on price. Plenty of sellers list the same products on their sites, but the
prices may be different. They are vying to increase their market share by selling the product.
The problem of data security is also a biggest challenges face by e-commerce sites.
Fraudsters post spam and attack the web host server, infecting the websites with
viruses. They can potentially gain access to confidential data about the customer’s phone
numbers, card details, and so on.

11
Operation plan

Projection of our Business Approach

As for our business, we do provide an app to support the business.Online business works
pretty much on the same principles as an offline or retail store does. On a broader scale, our
whole business process can be broken down into three main work processes. The first one is
receiving orders, this is the first step where customers place the order through our website
app and we make a note of it. Second process is processing the order information. This is the
second step where all the details of the order are processed and completed. It is now ready for
delivery. Third and last one is shipping: The last step is wherein the delivery process is
carried out. All the logistics components play a significant role in this step to ensure timely
delivery to the customer.

Business Locations: All over Malaysia, headquartered in Kuala Lumpur.

Facilities: - E-fulfillment center

- Offers complete services with best visibility

- Made the website user friendly

- Logistic support to deliver parcel

- Updated softwares to monitor website

- Uses best security systems for websites

12
Management team and company structure

CEO
SITI HALEELA FAZRIN

PRESIDENT
SHARMILA

MANAGER CO-MANAGER
JAAGAN SARVESH

BRAND AMBASADDOR SHIPPING SALES OFFICER FINANCE

PRIANKA CHIN CHONG ALI SURYA

WORKERS WORKERS SALESPERSON SALESPERSON

CHENG SHAH ALIF KUMAR

13
Financial Projections

A. Income Statement

JAPSASS Statement of Profit / Loss for the end of June 2020

2016

RM RM

Revenue 715,530

(-) Cost of goods sold (315,330)

Gross Profit 400,200

(+) Other income

Other revenues 137,170

537,370

(-) Other expenses

other expenses (91,355)

EEBITDA 446,015

(-)Amortization expenses (11,343)

Depreciation expenses (69,090)

EBIT 365,582

(-)Interest expenses (468,35)

EBT 318,747

(-)Taxes 105,187

213,560

Nett Profit

B. Ratio Analysis

14
 Ratio Formula Calculation ("000) Ratio Industry Average Comment

1. Liquidity Ratio

Current Ratio CA 97,770 3.89 4 OK

CL 25,110

Acid Test Ratio C A- Inventory 97,770-33,335 2.57 3.5 POOR

CL 25,110

2. Asset Management Ratio

Inventory Turnover Ratio Sales 715,530 21.46 19.5 GOOD

Inventory 33,335

Day Sales Outstanding AR 47,295 24.13 days 30 days GOOD

Sales/365 715,530/365

Fixed Asset Turnover Sales 715,530 1.04 1.15 OK

N.Fixed A 690,900

Total Asset Turnover Sales 715,530 0.91 0.52 OK

Total Asset 788,670

3. Debt Management Ratio

Total Debt to Total Asset Total Debt 225,110 x 100 28.54% 18.54% POOR

Total Asset 788,670

Time Interest Earned EBIT 365,582 7.81% 5.92% POOR

Interest 46,835

4. Profitability

Operating Margin Operating 365,582 x 100 51.09% 53.02 OK

Income Sales 715,530

Return of Total Margin Net Income 213,560 x 100 29.85% 31.5 OK

Sales 715,530

Return of Total Asset (RDA) Net Income 213,560 x100 27.08% 30% OK

Total Asset 788,670

Basic Earning Power (BEP ) EBIT 365,582 x 100 46.35% 52.8 OK

15
 Total Asset 788,670

Return on Common Equity Net Income 213,560 x 100 61.02% 62.09 OK

Common Equity 350,000

C. Balance Sheet

JAPSASS statement of Financial Position as of 30 June 2020

2020
RM RM RM

Non - Current Asset

Net Fixed Asset 690,900

Current Asset

Cash 17,140

Inventories 33,335

Receivables 47,295

97,770

(-) Current Liabilities

Accounts Payable 11,135

Other Current Libilities 13,975

(25,110)

Working Capital 72,660

763,560

Financed By,

Common Equity 350,000

16
(+) Net Profit 213,560

563,560

Non - Current Liabilities 200,000

Long - Term Debt 763,560

17