UNIVERSITY TECHNOLOGY OF MARA

SHAH ALAM

FACULTY OF SPORT SCIENCE AND RECREATION

A3 – BUSINESS PLAN: DANEA SOCKS

COURSE:

FUNDAMENTALS OF ENTREPRENEURSHIP (ENT 300)

GROUP:

SR115 & SR 113

PREPARED BY:

NUR AMISHA BINTI AZRILRIZAL (2020812184)

NUR NABILAH ATHIRAH BINTI MOHD RAFEE (2019735135)

MUHAMMAD EMIR IRFAN BIN YAAKUB (2020616528)

MUHAMMAD ZAIM AZIM BIN MUHAMMAD FAJRUDDIN (2020879388)

SITI NUR DANIEKRISYA BINTI SHEIKH FEISAL (2019167037)

PREPARED FOR :

DR AZLIN SHAFINAZ BINTI MOHAMAD ARSHAD

 TABLE OF CONTENT
No. Content Page Number
1. Executive Summary 1
2. 1.0 – Introduction 1-11
1.1 – Introduction of the business
1.2 – Business Description
1.3 – Company Background and Owner’s Description
1.4 – Location of the business
1.5 – Factors of desired location

3. 2.0 – Administrative Plan 13-19

2.1 – Introduction
2.2 – Business logo and Description
2.3 – Organizational Chart
2.4 – Administration Personnel
2.5 – Office Furniture and Fittings
2.6 – Office Supplies
2.7 – Administration Budget

4. 3.0 – Marketing plan 21-29

3.1 – Product and Service
3.2 – Target Market
3.3 – Market Size
3.4 – Sales Forecast
3.5 – Competitors Analysis
3.6 – Market Share
3.7 – Marketing Strategy
3.8 – Marketing Personnel
3.9 – Schedule of Tasks and Responsibilities
4.0 – Schedule of Remuneration
4.1 – Marketing Mix
4.2 – Marketing Budget

5. 4.3 – Operational Plan 31-36

4.4 – Operational Layout
4.5 – Production Planning
4.6 – Material Requirement Planning
4.7 – Machine and Equipment Requirement
4.8 – Business and Operation Hours
4.9 – Operational Personnel
5.0 – Operational Budget
6. 5.1 – Financial Plan 38-42
5.2 – Operational Budget
5.3 – Project Implementation Cost and Sources of
Financing
5.4 – Pro- Forma Cash Flow
5.5 – Pro- Forma Income Statement
5.6 – Pro- Forma Balance Sheet

7. 5.7 - Conclusion 43
8. 5.8 – Appendices 44-45
1.0 - EXECUTIVE SUMMARY

DANEA Socks was successfully established in early 2022. It is a small company with only 15
people involved, providing socks through social media platforms such as Instagram, Twitter,
WhatsApp, and even Walk-in is available. As we have the opportunity to get an insight into
the company’s thoughts and strategies, we find the task is very interesting. We find it
interesting to analyses both the product and the way of selling it. Through the distribution
channels Instagram, Twitter and WhatsApp, customer can view the assortment, take
advantage of different offers, buy the product and pay the product. Prior to do the marketing
plan, the external environment is scanned. Competitors are identified and the market
situation is analyzed.

1.1 – INTRODUCTION OF THE BUSINESS

Starting in early 2022, DANEA Socks was established to provide the best quality of socks
with a reasonable price to our customers. DANEA Socks was initially a combination of 5
shareholder’s name. This brand will hold strong values and beliefs that will make up the
identity of this business as a whole. Started from a small online business, now DANEA
Socks has its own company located at E-10, Enterprise 4, Technology Park Malaysia,
Lebuhraya Bukit Jalil, Bukit Jalil,57000 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
Other values to the brand will include quality, reputation, helping society, online community
and influencing others. It is a challenging business as socks business is a worldwide
business. As we stated in our company’s vision, we wanted to be known worldwide in this
socks market.

1
1.2 – BUSINESS DESCRIPTION

Purpose of Preparing Business Plan:

This business plan's goal is to provide specific information on company operations as a

guideline for deciding the company's course toward achieving its objective.

 To set organizational milestones.

 To achieve the mission, vision, and objectives of the business.
 Produce a healthy net profit over the following three years.
 Maintain regular customers and add new customers.
 To create a successful expansion strategy.
 Establish your long-term financial needs.

Reasons for Starting This Socks Business:

 Because everyone requires socks to protect their feet when wearing shoes, socks are a
very necessary and simple item to sell. Additionally, because socks are beneficial, the
elderly also wear them while they sleep.

 Customers adore high-quality socks because they feel so cozy while wearing them.
Selling high-quality socks can draw in a lot of buyers.

The socks business is likewise less at our place of business. Consequently, this is a
potential opportunity for our company to expand.

2
1.3 – COMPANY BACKGROUND & OWNER’S DESCRIPTION

Name of Business DANEA Socks

Business Address E-10, Enterprise 4, Technology Park

Malaysia, Lebuhraya Bukit Jalil, Bukit
Jalil,57000 Kuala Lumpur, Wilayah
Persekutuan Kuala Lumpur

Business legal Entity Sole Proprietorship

Nature of Business Garments wears, clothing, apparels, and

accessories wears.

Date of Opening 28 JANUARY 2022

Date of Registration 22 NOVEMBER 2021

Email address daneasocks2022@gmail.com

Banking Details DANEA Socks

CIMB BANK – 7620356820

Telephone Number 05-20056238

Factors in selecting this business - Nowadays socks are famous as a

styling accessory.
- It is close to a park where people
usually go to work out and they can
buy socks here.

3
Name of Partner SITI NUR DANIEKRISYA BINTI SHEIKH FEISAL

Position GENERAL MANAGER

Identity Card Numbers 000315-10-1608

Personal Address NO.27 JALAN ELEKTRON U16/67 DENAI

ALAM 40160, SHAH ALAM, SELANGOR

Correspondence Address NO.27 JALAN ELEKTRON U16/67 DENAI

ALAM 40160, SHAH ALAM, SELANGOR

E-mail daniekrisyasheikhfeisal@gmail.com

Telephone number / Fax number 0178752471

Date of Birth 15 MARCH 2000

Academic Qualifications DIPLOMA IN SPORT SCIENCE AND

RECREATION, UITM SHAH ALAM

Course Attended FUNDAMENTALS OF ENTREPRENEURSHIP

Skills - GOOD IN LEADERSHIP

- GOOD WITH TEAMWORK
Experiences - WORKING IN A FOOD AND
BEVERAGE INDUSTRY CALLED
RESTORAN NASI LEMAK PUTRI
- JOB SCOPE AS CASHIER
Marital Status SINGLE

4
Name of Partner MUHAMMAD EMIR IRFAN BIN YAAKUB

Position MARKETING MANAGER

Identity Card Numbers 020115-08-0433

Personal Address NO 64, KAMPUNG SIMPANG EMPAT 34500,

BATU KURAU, PERAK

Correspondence Address NO 21, JALAN PJS 3/1 46000, PETALING

JAYA, SELANGOR

E-mail emiryaakub@gmail.com

Telephone number / Fax number 01133097306

Date of Birth 15 JANUARY 2002

Academic Qualifications DIPLOMA IN SPORT SCIENCE AND

RECREATION, UITM SHAH ALAM

Course Attended FUNDAMENTALS OF ENTREPRENEURSHIP

Skills - EASY TO WORK WITH

Experiences - RUNNING A SMALL BUSINESS

SELLING JERSEYS
Marital Status SINGLE

5
Name of Partner NUR NABILAH ATHIRAH BINTI MOHD RAFEE

Position OPERATING MANAGER

Identity Card Numbers 000809-11-0360

Personal Address 1215 JALAN PASIR PANJANG 21100, KUALA

TERENGGANU, TERENGGANU

Correspondence Address 1215 JALAN PASIR PANJANG 21100, KUALA

TERENGGANU, TERENGGANU

E-mail nabilahrafee00@gmail.com

Telephone number / Fax number 0196345866

Date of Birth 9 AUGUST 2000

Academic Qualifications DIPLOMA IN SPORT SCIENCE AND

RECREATION, UITM SHAH ALAM

Course Attended FUNDAMENTALS OF ENTREPRENEURSHIP

Skills - GOOD IN MANAGING WORK

- KNOWS HOW TO MANAGE WORK
TIDYLY
Experiences - WORKING AT MY MOTHER’S SHOP
- RUN A SMALL BUSINESS SELLING
KARIPAP
Marital Status SINGLE

6
Name of Partner NUR AMISHA BINTI AZRILRIZAL

Position ADMINISTRATION MANAGER

Identity Card Numbers 02092208-04-0448

Personal Address NO 104, PERSIARAN PINGGIR RAPAT 6,

TAMAN SAIKAT 31350, IPOH PERAK

Correspondence Address NO 29, JALAN JERIJI U8/75, BUKIT

JELUTONG, 40150 SHAH ALAM, SELANGOR

E-mail amishanur22@gmail.com

Telephone number / Fax number 0103923580

Date of Birth 22 SEPTEMBER 2002

Academic Qualifications DIPLOMA IN SPORT SCIENCE AND

RECREATION, UITM SHAH ALAM

Course Attended FUNDAMENTALS OF ENTREPRENEURSHIP

Skills - EASY TO WORK WITH

- GREAT COMMUNICATION SKILL
- FRIENDLY WITH COMMUNITY
Experiences - RUNNING A SMALL BUSINESS
SELLING T-SHIRTS
- WORK AT A CASHIER AT 7 ELEVEN
Marital Status SINGLE

7
Name of Partner MUHAMAD ZAIM AZIM BIN MUHAMMAD
FAJRUDDIN
Position FINANCIAL MANAGER

Identity Card Numbers 020325-08-1335

Personal Address LOT 2236, PERUMAHAN TERSUSUN, JALAN

TAZALI 32000, SITIAWAN, PERAK

Correspondence Address KOLEJ KEDIAMAN MERANTI UNIVERSITI

TEKNOLOGI MARA, JALAN BUNGAN
TANJUNG 2/16, SEKSYEN 2, 40000 SHAH
ALAM, SELANGOR
E-mail zaimazim99@gmail.com

Telephone number / Fax number 0164464835

Date of Birth 25 MARCH 2002

Academic Qualifications DIPLOMA IN SPORT SCIENCE AND

RECREATION, UITM SHAH ALAM

Course Attended FUNDAMENTALS OF ENTREPRENEURSHIP

Skills - EASY TO SOLVE PROBLEM

- GREAT AT MANAGING FINANCIAL
- EASY TO COMMUNICATE
Experiences

Marital Status SINGLE

1.4 – LOCATION OF THE BUSINESS

8
9
Choosing a business location is not something that can be done in a whim, it is a crucial step
in starting a business. A business location strategy takes planning and research and a
willingness to thoroughly vet all of the options. Firstly, we need to decide on a business
location type. Starting from an online based shop, DANEA Socks has grown gradually, we
needed more space. By operating a manufacturing or distribution business we will have
special needs and will likely have limited choices when it comes to opening a new location.
Industrial sites are what we have in mind as we are a growing company that requires large
amounts of warehousing space, we need the access to major transportation routes.

One of the major priorities of finding a location is that making sure it fits within our company’s
budget. We need to consider the purchase price and monthly rent. Other than that,
something’s that needed to take account for is taxes, renovations, utility upgrades, minimum
wage requirements, and economic incentives. We have narrowed it down to several
industrial sites, and we have come up with a decision unanimously that the industrial site
located at E-10, Enterprise 4, Technology Park Malaysia, Lebuhraya Bukit Jalil, Bukit
Jalil,57000 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur is the best for our
business.

1.5 – FACTORS OF DESIRED LOCATION

1. Accessibility

 Our Business requires frequent deliveries therefore, it provides local transport links
such as main roads and motorways.

2. Security Factors

 Knowing the chances of the crime in certain areas, we considered it is an important

part of the decision making process. Knowing the risks of potential crime activity, it
helps us to better prepare and take adequate precautions. The location of a business
can increase the odds of being affected by crime, which in turn will influence our
insurance premiums.

10
3. Competition

 Establishing which competitors are in our area and their offering helped us to choose
the right location for our business. There is too much competition in our previous
area, and we have come in conclusion to expand our horizons to a new location.

4. Potential for Growth

 Moving premises is a big upheaval and can be time consuming and costly. But our
company is in for the long haul and will be to accommodate business growth and
spikes in demand.

11
ADMINISTRATIVE PLAN

12
2.0 – ADMINISTRATIVE PLAN

2.1 Introduction:

 DANEA Socks Vision:

 Our vision is to give good quality of a pair of socks.

 Want to be known in worldwide socks market.

 DANEA Socks Mission:

 To give the best quality of socks to our customer and to make sure the customer is
satisfied with our products with a reasonable price.

 DANEA Socks Objective:

 Our company objective is to provide the best quality of socks with a reasonable price to
our customers.

 DANEA Socks Trademark:

 Good socks good life.

13
2.2 BUSINESS LOGO & DESCRIPTION

The Company’s Name is a combination of all the shareholder’s name. The combination of
names is to get the opportunity to create a new identity that is special to all of us. It is a
union with equal weight. When merging names, it acts of establishment that we are all equal
partners. The reason we choose white as the color of the background is because white
stands for purity, its simplicity untainted by any other hue. White stands for everything good
and right, and we use it symbolically in opposition to black. White is the color of certainty, of
illumination, and of insight, and we associate it with knowledge and learning. White is
inviolable, the color that reveals the distasteful by comparison with its purity. And lastly, the
gold color is a rich, deep yellow color. The color gold is the color of extravagance, wealth
and excess.

14
2.3 ORGANIZATIONAL CHART

The internal structure of an entity or company is illustrated by an organizational chart. An

organizational chart is a diagram that visually conveys a company's internal structure by
detailing the roles, responsibilities, and relationships between individuals within an entity. It
is one way to visualize a bureaucracy. An organizational chart graphically represents an
organization's structure, highlighting the different jobs, departments, and responsibilities that
connect the company's employees to each other and to the management team. This
organizational chart from DANEA socks consists of general manager, administration
manager, marketing manager, operation manager and financial manager.

GENERAL
MANAGER
(SITI NUR
DANIEKRISYA BINTI
SHEIKH FEISAL)

MARKETING OPERATION FINANCIAL MANAGER

ADMINISTRATION
MANAGER MANAGER (MUHAMMAD ZAIM
MANAGER
(MUHAMMAD (NUR NABILAH AZIM BIN
(NUR AMISHA BINTI MUHAMMAD
EMIR IRFAN BIN ATHIRAH BINTI
AZRILRIZAL) FAJRUDDIN
YAAKUB) MOHD RAFEE)

15
2.4 ADMINISTRATION PERSONNEL

Table 1: List of Administration Personnel

Position No.Of Personnel’s

1. General Manager 1
2. Administration Manager 1
3. Marketing Manager 1
4. Operation Manager 1
5. Financial Manager 1

Table 2: Schedule of Task and Responsibilities

Position Task And Responsibilities

1. General Manager - A thoughtful leader and a confident decision
maker

- Helping people to develop and be productive

- Evaluate and improve operations and financial

performance

- Maintain Budgets and optimize expenses

- Ensuring the company’s profits are on the rise

2. Administration Manager - Plan and coordinate administrative procedures

and systems and devise ways to streamline
processes

- Recruit and train personnel and allocate

responsibilities and office space

- Assess staff performance and provide

coaching and guidance to ensure maximum
efficiency

- Ensure the smooth and adequate flow of

information within the company to facilitate
other business operations

3. Marketing Manager - Evaluating and optimizing marketing and

pricing strategies

- Analyzing market trends and preparing

forecasts

16
 - Increasing brand awareness and market share

- Coordinating marketing strategies with the

sales, financial, public relations and
production departments

4. Operation Manager - Ensure all operations are carried on in an

appropriate, cost-effective way

- Improve operational management systems,

processes and best practices

- Purchase materials, plan inventory and

oversee warehouse efficiency

- Help the organization’s processes remain

legally compliant

5. Financial Manager - Provide financial reports and interpret financial

information to managerial staff while
recommending further courses of action

- Advise on investment activities and provide

strategies that the company should take

- Maintain the financial health of the organization

- Analyze costs, pricing, variable contributions,

sales results and the company’s actual
performance compared to the business plans

Table 3: Schedule of Remuneration

Position No. Monthly Salary EPF (10%) SOCSO Total Amount

(0.5%)

17
 (Ringgit Malaysia)
(Ringgit (Ringgit
Malaysia ) Malaysia)
1. General Manager 1 6500 650 32.50 5817.50

2. Administration 1 5500 550 27.50 4922.50

Manager
3. Marketing 1 5200 520 26 4654
Manager
4. Operation 1 5150 515 25.75 4609.25
Manager
5. Financial 1 5000 500 25 4475
Manager
Total 5 27,350 2735 136.75 24,478.25

2.5 OFFICE FURNITURE AND FITTINGS

Table 4: Office Furniture and Fittings

Type Price/ Unit Quantity Total Amount (RM)

1. Office Chair 200 7 1400
2. Office Table 300 5 1500
3. Air-conditioner 900 3 2700
4. Wi-Fi Telephone 100 2 200
5. Telephone 50 5 250
6. Printer 75 2 150
7. Computer 300 5 1500
8. First Aid Kit 125 1 125
9. Curtain 149 4 596
10. Wall Clock 20 1 20
11. Punch Clock 120 1 120
12. Sock Rack 150 3 450
13. CCTV 220 3 660
Total 2559 9671

2.6 OFFICE SUPPLIES

Table 5: List of Supplies

18
 Type Price/ Unit Quantity Total Amount (RM)
1. Stationery 15 5 75
2. Files 2 10 20
3. Printer’s Ink 8 4 32
4. A4 Paper 8 2 16
Total 33 21 143

2.7 ADMINISTRATION BUDGET

Table 6: Administration Budget

Items Fixed Assets (RM) Monthly Expenses Other Expenses (RM)

( RM)
1. Furniture and Fittings 9671
2. Outlet Renovation 10,000
3. Wages + EPF + 30,221.75
SOCSO
4. Rent 2500
5. Utilities 1800
6. Office Supplies 143
7. Business License and 380
Registration

Total 19,671 34,664.75 380

19
MARKETING PLAN

20
3.0 – MARKETING PLAN

3.1 - PRODUCT AND SERVICE:

The business that we proposed is DANEA Socks. It sells high quality socks. Each item is
made from scratch using the best material from local suppliers. The best thing about our
socks is our product keep our foot breathable. It is essential that our product is not only
comfortable to wear, we are also concerned on how it looks to be appealing and stylish for
our customers. Customers also may purchase pre-made or made-to-order products.

DANEA Socks specializes in making customize socks with exceptional customer service. If a
customer has a specific request on the socks, we can help the customer to make the design
that they wanted. Our customer also can design their own pair of socks and enjoy the socks
that they design themselves. We also taking for bundle order.

3.2 – TARGET MARKET

For the target market, we use demographic segmentation, which focuses on the income
level when establishing our target market. For the customers who are in the middle-and
high-income level, they can buy our products because we use high quality materials and first
quality materials and sells it with a reasonable price.

Demographic Segmentation:

We welcome entire layers of society to give a shot at DANEA Socks. This is because there
is no age range to wear a pair of socks, every age can enjoy the greatness of the socks, but
we targeted more for bundle purchases. We are always concerned with giving the customers
our best state. In addition, we also provide excellent prices for our customers. Because of
that, low-income customers can enjoy our socks from DANEA Socks and at the same time,
the high-income customers will also choose to purchase from us because the product that
we provide only using high quality materials and first quality materials.

21
3.3 – MARKET SIZE

Table 7: Market Size

Market Segment Population Target Market (%) Target Market

Youth (18-24) 31,500 50 % 8000
Adult (25 – 49) 25,200 40% 6000
Senior Citizen (50- 10,214 10% 1091
64)

Market Segment Target Market Potential Purchase Total Potential

Purchase (Years)
RM
Youth (18-24) 8000 400/year (RM 400 X 1 Year) x
8000 = 38,400,000
Adult (25 – 49) 6000 200/year (RM 200 X 1 Year) x
6000 = 14,400,000
Senior Citizen (50- 1091 100/year (RM 100 X 1 Year) x
64) 1091 = 1,309,200
Total 54,109,200

22
3.4 – SALES FORECAST

Table 8: Sales Forecast

Year Month Sales (RM) Purchase

January 30,450 609
February 40,000 800
March 35,900 718
April 35,150 703
May 37,000 740
Jun 37,600 752
July 36,700 734
Year 1
August 35,400 708
September 36,250 725
October 39,500 790
November 44,500 890
December 47,500 950
Total 455,950 9,119
Year 2
(increase 15% of January - December 524,342 10,486
sales and purchase
from year 1)
Year 3 +
(increase 25% of January - December 655,427 13,107
sales and purchases
from year 2)

23
3.5 – COMPETITORS ANALYSIS

Table 9: Competitor Analysis

COMPETITORS STRENGTH WEAKNESSES

1. Strong branding. 1. High price.

2. High quality of product. 2. Unaffordable product for

NIKE SOCKS
customers.
3. Famous brand.

1. Strong brand reputation. 1. High price.

VANS SOCKS
2. High quality of product. 2. The socks are more
specific for skateboarders.
3. Many types of design.

1. Famous branding. 1. High price.

OFF-WHITE SOCKS
2. High of quality. 2. Unaffordable product
for customers.

24
3.6 – MARKET SHARE

Market share before the entry of “DANEA Socks”

Table 10: Market Share Before

Competitors Market Share (%) Market share/ Yearly (RM)

Nike 50 RM 74,494,800
Vans 30 RM 44,696,880
Off White 20 RM 29,797,920
Total 100 RM 148,989,600

Market share after the entry of “DANEA Socks”

Table 11: Market Share After

Competitors Market Share Loss of Market Market share/

(%) Market Share Share (%) Yearly (RM)
(%)
Nike 50 2 48 RM 74,494,800
Vans 30 - 30 RM 44,696,880
Off White 20 - 20 RM 29,797,920
DANEA Socks - - 2 RM 2,979,792
Total 100 2 100 RM 148,989,600

25
3.7 – MARKETING STRATEGY

1. Product

The product that we sell is sock which is to be specific is “DANEA Socks” as a Hybrid
Business that sells cotton hipster designated socks. The socks are made of 75 % cotton, it
comes in one size and the sizes that are suitable is from 35-44 and the length of the socks is
around calf high.

2. Price

The price of our socks is RM 8 and is very reasonable and affordable. Customers can get
high quality of socks with a reasonable price. This will make customers interested to buy our
product.

3. Promotion

We also run promotion to attract customers to buy our product and make more profit from
that. The strategies that we make for promotion is buy 3 pairs and they will get 1 pair for free
socks and customers who buy 5 pairs above will get 20 % discount of the price. This
strategy will make customers want to buy our product.

4. Place

We sell our product both online and at our store located at E-10, Enterprise 4, Technology
Park Malaysia, Lebuhraya Bukit Jalil, Bukit Jalil,57000 Kuala Lumpur, Wilayah Persekutuan
Kuala Lumpur. So our target market will be customers who live nearby Shah Alam and Kuala
Lumpur area. This place is very strategic because of the population of people at this area is
very large, so our target market will become better.

26
3.8 – MARKETING PERSONNEL

Table 12: Marketing Personnel

Position No. Of Personnel’s

1. Marketing Manager 1
2. Market Research Analyst 1

3. Marketing Coordinator 1
4. Marketing Consultant 1
3.9 – SCHEDULE OF TASKS AND RESPONSIBILITIES
(MARKETING PERSONNEL)

Table 13: Schedule of Tasks and Responsibilities

Position Task and Responsibilities

1. Marketing Manager Maintain a fully stocked store and inform clients

about new goods and services.
2. Market Research Analyst Study consumer preferences, business conditions
and other factors to assess potential sales of a
product or service

 Tracking advertising costs

 Researching consumer behavior
 Exploring market trends and opportunities

3. Marketing Coordinator Coordinating marketing and community events,

assisting with the development, execution, and
monitoring of email, digital, social media, and
content marketing campaigns, creating original
content, and conducting market research.

 Support the marketing department's initiatives

with the planning, executing, and tracking of
marketing programs such as email, event,
social media, or content marketing

 Independently coordinate marketing and

community events, including overseeing
logistics, managing registrations, coordinating
with vendors, creating itineraries, and ordering
marketing collateral

 Coordinate product, event, or content email

marketing campaigns, including copy,

27
 scheduling, testing, and database
management

4. Marketing Consultant Assists companies in creating and implementing

the best possible strategies to reach their target
audience

 Studying company profile and operations to

understand its marketing needs

 Conducting marketing research to identify

industry trends and commercial opportunities

 Developing and implementing a marketing

strategy according to objectives and budget

4.0 – SCHEDULE OF REMUNERATION (MARKETING PERSONNEL)

Table 14: Schedule of Remuneration

Position Number of Monthly EPF 10% SOCSO 0.5% Total

Personnel Salary (Ringgit (Ringgit (Ringgit
(RM) Malaysia) Malaysia ) Malaysia )
Marketing 1 3271 327.10 16.35 2927.55
Manager
Market 1 3100 310 15.50 2774.50
Research
Analyst
Marketing 1 2881 288.10 14.40 2578.50
Coordinator
Marketing 1 2700 270 13.50 2416.50
Consultant
Total 10,697.05

4.1 – MARKETING MIX

28
 Product Pricing Place Promotion
 Quality  Positioning  Sales support  Social Media
 Image  List  Channel Number  Email Marketing
 Branding  Discounts  Segmented  Digital
 Features  Payment channels advertising
 Mix methods  Public Relations

 Support
 Customer
Service
 Use Occasion
 Availability

4.2 – MARKETING BUDGET

Particulars Fixed Assets Monthly Other Total

Expenses Expenses Expenses
(RM) (RM) (RM) (RM)
Fixed Assets
RM 1350 (22ft x 4ft) +
Signboard RM 1650
RM 300 (Install)
Office Furniture and
RM 9671 RM 9671
fittings
Working Capital
RM
Remuneration RM 10,697.05 10,697.05
Office Supplies RM 143 RM 143
Other Expenditure
Licenses for Signboard Rm 1500 RM 1500
Banners RM 85 RM 85
Total 11,321 10,840.05 1585 23,746.05

29
 OPERATIONAL PLAN

4.3 – OPERATIONAL PLAN

30
An Operational Plan is an extremely detail-oriented plan that clearly defines how our team
contributes to reach the goals for DANEA Socks. This Operational Plan gives us a clear
vision of our enterprise to discover new designs and meet our customer’s interests. As socks
is a vital part of our fashion garment. Customer’s love to wear socks with catchy patterns,
vibrant colors and soft materials. In this operation planning, we are able to designate socks
that the customer’s desires as well as we get to expand its technique as per society’s choice.

4.4 – OPERATIONAL LAYOUT

31
4.5 – PRODUCTION PLANNING

Calculation output per day:

Average Sales Forecast/ Month = RM 230,000

Price Per Unit = RM 230,000

50

Number of Output/ Month = 4600 units

Amount of Output/ Day = 4600

30

= 153 units/ day

32
4.6 – MATERIAL REQUIREMENT PLANNING

Material Quantity Required Price/ Unit (RM) Total Price (RM)

Rotary Cutter 3 pairs 20 60
Snips 3 pairs 2 6
Scissor 3 pairs 7 21
Paper 5 reams 12 60
Pencil 2 bundles 8 16
Fabric Marker 2 bundles 9 18
Sewing Thread 4 bundles 2.30 9.20
Cotton Yarn 5 bundles 7.90 39.50
Acrylic Yarn 5 bundles 9.90 49.50
Nylon Yarn 5 bundles 6.30 31.50
Elastic Yarn 5 bundles 6.50 32.50
Detergent 2.3 kg 35.43 81.50
Plastic Bag 3000 pcs 1 3000
Total 3424.70

4.7 – MACHINE AND EQUIPMENT REQUIREMENT

No. Machine And Equipment Quantity Price Per Unit Total Price
(RM) (RM)
1. Mechanical Sewing 5 1905 9525
Machine
2. Overlock Machine 5 1079 5395
3. Socks Tagging Sewing 5 3000 15,000
Machine
4. Garment Washing 3 1350 4050
Machine
5. Hydro extractor 3 3000 9000
6. Dryer Tumbler 3 1389 4167
7. Washroom Trolleys 5 250 1250
8. Steam Press 5 800 4000
Total 52,387

33
4.8 – BUSINESS AND OPERATION HOURS

Business Hour:

Day Time
Monday – Friday 10.00 am – 8.00pm

Saturday and Sunday 10.00 am – 6.00pm

Operation Hour:

Day Time
Monday – Friday 9.00 am – 6.00pm

Saturday and Sunday 9.00 am – 5.00pm

34
4.9 – OPERATIONAL PERSONNEL

Position and number of personnel:

Position Number Of Personnel

Production Manager 1
Fulfillment Associates 3
Knitter 2

Schedule of Task and Responsibilities:

Position Task And Responsibility

The Production Manager manages the
Production Manager placement, execution, and follow-up of
manufacturing orders and by ensuring
the timely delivery of quality and
profitable goods.

 Manages factory base for competitive

edge for quality, cost, delivery with
design, product development, and
senior management.

 Evaluates and manages vendor

performance critically based purchase
order history of on-time delivery, lead
time, quality acceptance rates.

 Streamlines, with cross-functional

teams, the factory base for maximum
performance of product execution and
company deliverables.

Fulfillment Associates A Professional who works in a

warehouse environment to help
organize, stock, and retrieve items for
shipping

 Receive and put away inventory

 Get customer orders ready and pack
them up
 Load boxes into trucks for shipment
 Use scanners to read bar codes on
products
 View prompts on screens and follow the
direction for some tasks
 Troubleshoot problems
 Ensure product meets quality
requirements

35
  Operate power industrial trucks (PIT)
such as a forklift or pallet driver, and
work at heights up to 35 feet.
Knitter  Performed basic machine set up

 Inspect products to ensure that

specifications are met and to determine
if machines need adjustment

 Keep machines creel and clean and

make sure that there is no fabric detect
in the cloth

 Knit socks and creel yarn

5.0 – OPERATIONAL BUDGET

Item Fixed Assets Monthly Expenses Other Expenses

Expenses (RM) (RM) (RM)
Material 3424.70
Requirement
Planning
Machine and 52,487
Equipment
Requirement
Other Expenditure: 250
Repair and
Maintenance
Utilities 1800
Total 52,487 5224.70 250
Fine Total (RM) 52,487 57,711.70 57,961.70

36
FINANCIAL PLAN

37
5.1 – FINANCIAL PlAN

5.2 – Operational Budget of DANEA Socks:

FINANCIAL PLANNING
© Ismail Ab.Wahab, MEDEC, UiT M, 2006

NAME OF BUSINESS/COMPANY DANEA SOCKS

1. Projected administrative, marketing and operations expenditure :

MARKETING EXPENDITURE ADMINISTRATIVE EXPENDITURE OPERATIONS EXPENDITURE

Fixed Assets RM
Fixed Assets RM Fixed Assets RM
Land & Building 2,500
Signboard 1,650 Office Furniture and Fittings 9,671 Machine and Equipment 52,387
Office Furniture and Fittings 9,671 Outlet Renovation 10,000

Working Capital Working Capital Working Capital

Rumeneration 10,697 Rumeneration 24,478 Raw Materials 3,425
Office Supplies 143 Utilities 1,800 Carriage Inward & Duty
Rental 2,500 Salaries, EPF & SOCSO 10,697

Other Expenditure Other Expenditure Other Expenditure

Other Expenditure 1585 Other Expenditure Other Expenditure 250
Pre-Operations Pre-Operations Pre-Operations
Deposit (rent, utilities, etc.) 4,300 Deposit (rent, utilities, etc.) 500 Deposit (rent, utilities, etc.)
Business Registration & Licences 380 Business Registration & Licences 380 Business Registration & Licences
Insurance & Road Tax for Motor Vehicle Insurance & Road Tax for Motor Vehicle 100 Insurance & Road Tax for Motor Vehicle
Other Expenditure Other Expenditure Other Expenditure
TOTAL 28,426 TOTAL 51,929 TOTAL 66,759

2. Projected sales and purchases: SALES PROJECTION PURCHASE PROJECTION

Year 1 Month 1 30,450 Month 1 3,425
Month 2 40,000 Month 2 3,425
Month 3 35,900 Month 3 3,425
Month 4 35,150 Month 4 3,425
Month 5 37,000 Month 5 3,425
Month 6 37,600 Month 6 3,425
Month 7 36,700 Month 7 3,425
Month 8 35,400 Month 8 3,425
Month 9 36,250 Month 9 3,425
Month 10 39,500 Month 10 3,425
Month 11 44,500 Month 11 3,425
Month 12 47,500 Month 12 3,425
Total Year 1 455,950 Total Year 1 41,096
Year 2 ToTal Year 2 ToTal Year 2
Year 3 Total Year 3 Total Year 3
\
3. Collection for sales & payment for purchases: COLLECTIONS FOR SALES PAYMENTS FOR PURCHASES
In the month of sale 100% In the month of purchase
1 month after sale 1 month after purchase 100%
2 months after sale 2 months after purchase
Total 100% Total 100%

4. Economic life of fixed assets & FIXED ASSETS Econ. Life (yrs) FIXED ASSETS Econ. Life (yrs)
depreciation method: Office Furniture and Fittings 5 5
Outlet Renovation 5 5
- 5 Machine and Equipment 5
- 5 5
Signboard 5 5
Office Furniture and Fittings 5 5

DEPRECIATION METHOD (1=straight line, 2=declining b alance) 1

5. Increase in working capital (if any): INCREASE IN WORKING CAPITAL (%)

Year 2
Year 3

6. Ending stock for raw materials ENDING STOCK OF RAW MATERIALS RM ENDING STOCK OF FINISHED GOODS RM
and finished goods: End of Year 1 End of Year 1
End of Year 2 End of Year 2
End of Year 3 End of Year 3

7. Rate of taxation (for private limited company): TAX RATE

Year 1 28%
Year 2 28%
Year 3 28%

8. Business background: BUSINESS LEGAL ENTITY 2 NATURE OF BUSINESS 1

1 = Private Limited Cpm pany (Sdn. Bhd.) 1 = Manufacturing
2 = Partnership 2 = Trading
3 = Sole Proprietorship 3 = Service

9. Sources of finance: TERMS OF LOAN (if required)

Interest rate 5%
Loan duration 5
Interest payment method* 2
* Method: 1 = flat rate 2 = annual rest k adar tetap

TERMS OF HIRE-PURCHASE (if required)

Interest rate 5%
Hire-purchase duration 5

38
5.3 – Project Implementing Cost and Sources of Financing of DANEA Socks:

DANEA SOCKS
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE
Project Implementation Cost Sources of Finance
Requirements Cost Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing F. Assets
Land & Building 2,500 2,500
Office Furniture and Fittings 9,671 9,671
Outlet Renovation 10,000 10,000

Signboard 1,650 1,650

Office Furniture and Fittings 9,671 9,671

Machine and Equipment 52,387 52,387

Working Capital 1 months

Administrative 28,778 28,778
Marketing 10,840 10,840
Operations 14,122 14,122
Pre-Operations & Other Expenditure 7,495 7,495
Contingencies

TOTAL 147,114 147,114

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5.4 – Pro – Forma Cash Flow:

DANEA SOCKS
PRO FORMA CASH FLOW STATEMENT
MONTH Pre-Operations 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL YR 1 YEAR 2 YEAR 3

CASH INFLOW
Capital (Cash)
Loan 147,114 147,114
Cash Sales 30,450 40,000 35,900 35,150 37,000 37,600 36,700 35,400 36,250 39,500 44,500 47,500 455,950
Collection of A ccounts Receivable
TOTAL CASH INFLOW 147,114 30,450 40,000 35,900 35,150 37,000 37,600 36,700 35,400 36,250 39,500 44,500 47,500 603,064

CASH OUTFLOW
Adm inis trative Expenditure
Rumeneration 24,478 24,478 24,478 24,478 24,478 24,478 24,478 24,478 24,478 24,478 24,478 24,478 293,737 293,737 293,737
Utilities 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600 21,600 21,600
Rental 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 30,000 30,000

M ark eting Expenditure

Rumeneration 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 128,365 128,365 128,365
Office Supplies 143 143 143 143 143 143 143 143 143 143 143 143 1,716 1,716 1,716

Operations Expenditure
Cash Purchase
Payment of Account Payable 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 3,425 37,672 41,096
Carriage Inw ard & Duty
Salaries, EPF & SOCSO 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 10,697 128,364 128,364 128,364

Other Expenditure 1,835 1,835 1,835 1,835

Pre-Operations
Deposit (rent, utilities, etc.) 4,800 4,800
Business Registration & Licences 760 760
Insurance & Road Tax for Motor Vehicle 100 100 100 100
Other Pre-Operations Expenditure
Fixed As sets
Purchase of Fixed A ssets - Land & Building 2,500 2,500
Purchase of Fixed A ssets - Others 83,379 83,379
Hire-Purchase Dow n Payment
Hire-Purchas e Repaym e nt:
Principal
Interest
Loan Repaym ent:
Principal 2,452 2,452 2,452 2,452 2,452 2,452 2,452 2,452 2,452 2,452 2,452 2,452 29,423 29,423 29,423
Interest 613 613 613 613 613 613 613 613 613 613 613 613 7,356 5,885 4,413
Tax Payable 0 0 0 0
TOTAL CASH OUTFLOW 91,539 55,215 56,805 56,805 56,805 56,805 56,805 56,805 56,805 56,805 56,805 56,805 56,805 771,605 682,120 639,552
CASH SURPLUS (DEFICIT) 55,575 (24,765) (16,805) (20,905) (21,655) (19,805) (19,205) (20,105) (21,405) (20,555) (17,305) (12,305) (9,305) (168,542) (682,120) (639,552)
BEGINNING CASH BALANCE 55,575 30,810 14,005 (6,900) (28,554) (48,359) (67,564) (87,668) (109,073) (129,628) (146,932) (159,237) (168,542) (850,661)
ENDING CASH BALANCE 55,575 30,810 14,005 (6,900) (28,554) (48,359) (67,564) (87,668) (109,073) (129,628) (146,932) (159,237) (168,542) (168,542) (850,661) (1,490,214)

40
5.5 – Pro – Forma Income Statement:

DANEA SOCKS
PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3

Sales 455,950
Less: Cost of Sales
Opening stock
Purchases 41,096
Less: Ending Stock
Carriage Inward & Duty

Gross Profit

Less: Enpenditure
Administrative Expenditure 345,337 345,337 345,337
Marketing Expenditure 130,081 130,081 130,081
Other Expenditure 1,835 1,835 1,835
Business Registration & Licences 760
Insurance & Road Tax for Motor Vehicle 100 100 100
Other Pre-Operations Expenditure
Interest on Hire-Purchase
Interest on Loan 7,356 5,885 4,413
Depreciation of Fixed Assets 16,676 16,676 16,676
Operations Expenditure 128,364 128,364 128,364
Total Expenditure 671,604 628,277 626,805
Net Profit Before Tax (215,654) (628,277) (626,805)
Tax 0 0 0
Net Profit After Tax (215,654) (628,277) (626,805)
Accumulated Net Profit (215,654) (843,931) (1,470,736)

41
5.6 – Pro- Forma Balance Sheet:

DANEA SOCKS
PRO-FORMA BALANCE SHEET

Year 1 Year 2 Year 3

ASSETS
Non-Current Assets (Book Value)
Land & Building 2,500 2,500 2,500
Office Furniture and Fittings 7,737 5,803 3,868
Outlet Renovation 8,000 6,000 4,000

Signboard 1,320 990 660

Office Furniture and Fittings 7,737 5,803 3,868

Machine and Equipment 41,910 31,432 20,955

Other Assets
Deposit 4,800 4,800 4,800

74,003 57,327 40,652

Current Assets
Stock of Raw Materials 0 0 0
Stock of Finished Goods 0 0 0
Accounts Receivable
Cash Balance (168,542) (850,661) (1,490,214)
(168,542) (850,661) (1,490,214)

TOTAL ASSETS (89,738) (788,534) (1,444,762)

Owners' Equity
Capital
Accumulated Profit (215,654) (843,931) (1,470,736)
(215,654) (843,931) (1,470,736)
Long-Term Liabilities
Loan Balance 117,691 88,268 58,846
Hire-Purchase Balance
117,691 88,268 58,846
Current Liabilities
Accounts Payable 3,425 (37,672) (37,672)

TOTAL EQUITY & LIABILITIES (94,538) (793,334) (1,449,562)

42
43
5.7 – CONCLUSION

To conclude, DANEA Socks is a business establishment that always want to make it in the
socks market worldwide. Our business can compete well with other similar business as well.
Moreover, DANEA Socks has make lots of efforts during the survey for the establishment of
business and in terms of its financial projections. In connection with that, we are aiming to
provide our service according to our customer’s wants, desire and needs. We are very
confident and believe that our business venture will create and establish a very satisfactory
investment return every year. Our business will continuously make concentrate in the
business strategies, especially in terms of marketing to ensure that the business is well
known to the customers. We hope that we will be able to build a good loyal customer base
every year.

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5.8 – APPENDICES

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