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Business Proposal REPORT MAF661
Business Proposal REPORT MAF661
Business Proposal REPORT MAF661
MULTIPURPOSE
CHOPPING BOARD
PRESENTED TO
PROF.DR NORHAYATI BT MOHAMED
CLASS
AC220B6J
PREPARE BY
ALIA SYARINA BT MOHD SAHIRAM (2021393815)
MUHAMMAD SHAHRIN BIN YUSOF (2021393813)
NUR SYAHIRAH BT MOKHTAR (2021120541)
NURAINNE ATIQAH BT MOHD SALLEH (2021171789)
ACKNOWLEDGEMENT
We would like to express our gratitude and deepest appreciations to all those who
helped and provided us with many information about the assignment of our business
proposal in order for us to complete this project within the period of time that have
been given by our lecturer. We would like to express our gratitude to our respected
lecturer,Professor Dr Norhayati Binti Mohamed.All guidence that have been
contributed by her is very helpful for us.Without her guidance,our project would
have been incomplete.
In addition,we also would like to thanks our beloved friends and both of our parents
for their moral support and their non-stop encouragement for us.We hope that this
project has come to its very best.
Last but not least,all of us already done our part and we also have done our best to
complete this project and hope for the good grades.Thank you.
www.saaskitchentoolsdnbhd.com
Executive Summary
SAAS Sdn Bhd is a company who provide a kitchen tool or appliances for cutting and chopping
food material's process to become smooth and easier.Our business is a start up venture that
have been handle by four individuals with five years of experience in marketing,financial and
operation of the business process.Even though our business is new in the kitchen appliances
industry,we manage to sell about 4000 units of our multipurpose chopping board in the first
year of the operations
As for the product,SAAS Sdn Bhd has made their own new design of multipurpose cutting board
that have 8 interesting features that can make every task become easier in the kitchen.SAAS
Sdn Bhd used technologies in our product due to the changes of technology nowadays.People
really love to use equipment that suser-friendly and many uses that can solve all the problem
just using one item only.This product is create for all type of customers in Malaysia because we
want to develop a new experiences while using high quality kitchen tools.
For the competitors perspective,we need to compete with some of the competitors who
already established in the industry that provide same product which is conventional cutting
board that already have their own regular customers that supported their business.As a new
business in the industry,SAAS Sdn Bhd need some advice and strategies from the others so that
we are aware with the current situations.
In planning to start the business.SAAS Sdn Bhd already invested total capital amounted to
RM350,000 where all the partners are contribute the same amount of RM30,000.This business
also has been supported by the loan from Maybank Malaysia amounting RM250,000.We will be
used all capital that have been received in the production,packaging,short term
capital,overhead cost and also marketing.The estimated amount of our start up cost is
RM319,300 that consist of avaerage monthly cost and fixed cost that we need to bare in the first
year of business operations.
www.saaskitchentoolsdnbhd.com
TABLE OF CONTENT
02
02 Business Background
03-04
03 Innovation
05
04 Swot Analysis
06-07
05 Porter's Five Forces Model
08
06 Pestel Analysis
09
07 Entry Strategies
10
08 Start Up Cost
11
09 Competitive Advantage Sustainability
12
10 Conclusion
13
11 References
12 Appendix 14-16
STATEMENT OF
PROBLEM OR ISSUES
People in today’s world are overburdened with work due to economic factors and other
factors such as being busy taking care of the children. Due to many responsibilities to do
household chores, the household, particularly the working mom and single mom, feel
pressure in preparing food for their family. Because of the scarcity and constraint of time,
it is becoming necessary to have a useful tool that can ease their job. Our company can
solve this issue by providing Multipurpose Cutting Board. The cutting board has many
features that can be used for a variety of tasks. Our product allows users to increase their
productivity by saving time in using and cleaning the tools and easy to store.
Besides that, due to limited space, people who own a small kitchen design may struggle to store and
organize their kitchen tools, equipment, and appliances. The abundance of kitchen tools may give the
people living in the house a chaotic and poorly organized appearance. This could also cause people’s
work to be delayed as they look for the tools they need. Our Multipurpose Cutting Board can help with
this issue because it is a 7-in-1 tool. The purpose of our product is to serve multiple functions for the
user. The cutting board can help users save space in the kitchen without having to purchase multiple
items which in the meantime could save money.
Moreover, nowadays, people are more aware of personal hygiene since the pandemic COVID-19
outbreak in most countries, including Malaysia. People practice hygiene in their daily lives in order to
avoid and prevent infectious diseases. They take numerous precautions to ensure that they are free of
the virus COVID-19. Because the virus can spread in the open air, it has contaminated the surfaces of
household equipment and furniture. The UV light is built into the Multipurpose Cutting Board to sanitize
any germ or bacteria on the knife’s surface.
01
About the Company
LOGO AND NAME OF THE COMPANY
Our logo is represents our company's icon of our
chopping board that can caught people's
attentions to buy and purchase with us.As for
our business named,SAAS Sdn Bhd is unique
because it was chosen due to combination of
our partners' names that shows a great and
strong teamwork within the organisation.
LOCATION
Our location have been taken place at No 124D,Jalan Muafakat
9,Kawasan Perindustrian Taman Johor 81200 Johor Bahru,Johor.We
choose the place because it is very strategic and it will be easier for the
customer to reach us since our business is at the center of the city.
02
INNOVATION
When there is an improvement or change that increases the value of a product, this is
considered innovation. Innovation is also a process of introducing new ideas and
applying new knowledge to transform a product for the better. The incorporation of
creativity in the process of innovation can result in the creation of a product that can
solve a customer’s problem.
03
3 layers of board
(cutting board, water Built-in UV light
rinse & compartment) (knife sanitizer)
The Multipurpose Cutting Board serves
Another feature of our product is the
more than just as a cutting surface. Our
water rinse basket. It is a foldable
product also includes additional
water rinse basket that can save kitchen
features that will benefit buyers. One of
space. The water rinse basket can be
the features is a knife sanitizer. Our
stretched by pulling it and pushed back
cutting board has a built-in UV light
by pushing it. Another feature of our
that functions to sanitize the knife.
product is the compartment for storing
When using our product, the user can
groceries while using our board. The
sanitize any bacteria and germs on the
water rinse can be used after washing
surface of the knife before and after
the groceries to drain the water and
using it. The user can toggle the sanitize
place it in the compartment to
features on and off by clicking the on
separate the material.
and off buttons.
Opportunities Threats
Through the invention of the multipurpose There are a number of threats to this invention,
cutting board, users will be able to change the as it indicates that the multipurpose nature of
process of preparing food materials so that it the cutting board may have some difficulties
becomes an enjoyable experience in which they replacing the existing ones embraced by the
can involve their families. They can cook industry because of customers' loyalty to the
together in the process of preparing food existing conventional cutting boards.
materials before cooking. As a result of the Additionally, we must compete with other
user- friendly invention of a cutting board, manufacturers that have already dominated the
anyone can use it without a doubt, and the way market, offering multiple options for cutting
to use or handle it is easy and not complicated boards that have their own loyal customers. Our
for the user. Furthermore, the idea of company is also required to compete with the
organizing kitchenware can also serve as a competitor that offers a different distribution
decorative element and design for kitchens to platform for cutting boards.
make them appear more appealing.
05
PORTER'S FIVE FORCES MODEL
The porter’s five forces model was developed by Michael E.Porter and has been
commonly used as a tool to examine the industry-level competitive environment.
There are five basic competitive forces:
The threat of entry of new entrants refers to the chance that new rivals may
harm the revenues of the firm in the industry. The nature of the difficulties is
determined by new entry barriers and developing rivals' collective responses.
Product differentiation and switching costs are two forms of entry barriers
Product differentiation occurs when existing rivals have strong brand recognition
and consumer loyalty. Product differentiation creates barriers to entrance by
needing competitors to invest heavily in resolving current customer loyalties. To
compete with competition, we need to have our own customers and a specialty
to distinguish our products from others.
Next is switching cost. When a customer switches from one supplier's good or
service to another, they encounter an entrance barrier because of the nature of
one- time expenditures. When customers desire to transfer to different products,
there will be a switching fee is charged in the transition.
This threat relates to buyer power, which might threaten the industry and result
in poorer profitability. The buyer or consumer may select the best option to get
an advantage.
The bargaining power of buyers are strong because buyers have varieties of
choices. They can select to buy our product, our rivals’ products, or any other
alternative items and the switching cost will be minimal. Buyers with strong
bargaining power can request for high quality service and lower prices. If there
are many options in the market, the buyer will have greater bargaining power
since they will urge us to cut the price so that our firm can compete with others
in the industry. However, if the markets are large and our firm has no trouble to
acquiring customers and they can stick with their price, so we have low
bargaining power of buyer. Our customer has the option of purchasing either our
goods or that of one of our rivals.
06
PORTER'S FIVE FORCES MODEL
3. The bargaining power of suppliers.
The bargaining power of suppliers is a threat where suppliers may raise the prices
or lower the quality of purchased goods and services. Suppliers with this influence
can squeeze the profitability of firms until they can no longer offset the cost of
raw materials input. In other terms, if refers to the pressure that suppliers might
put on firms by raising their prices, lowering their quality, or limiting the
availability of their products.
The bargaining power of suppliers are low. This is due to our company uses
materials that are not supplied by a specific source and are easily obtained on the
market.
The threat of substitute items for our products is high. This is because our
customers will prefer other cutting boards that perform the same function but are
less expensive than us. There are also many types of cutting boards on the
market, each with a separate pricing, function, and features to offer customers.
There are also several industry leaders who are welded within the sector
moreover. Our company has a high level of rivalry and we want to do something
about it. For example, our company can improve the usefulness of a
multifunctional cutting board. Next, we may begin to reduce the value while
providing additional functionality to our customers. This may prompt our rival to
respond to our activity. The competitor in the market will begin to provide better
prices and performance for their items. They will continue to change in
accordance with policy, resulting in fierce rivalry among the existing market
competitors. Customers will then switch to the other board because there are so
many options in the marketplace.
07
PESTEL ANALYSIS
ECONOMIC
Economic factors play a significant role in the performance of a company. This would have a
significant impact on consumers' purchasing power and indirectly alter the demand for the
product. In terms of economic factors, consumers' disposable income is one example. Due to
new regulations imposed on certain industries during COVID-19, unemployment rates
increased in Malaysia, such as factories not being able to operate as usual, leading employers
to retrench their workers. The economic factor has an important impact on new businesses like
ours. People are being more careful with the way they spend their money now.
Due to the changing habits of people regarding spending, we must convince them that our
product can save them money since it can be used for a wide range of applications. Aside from
selling our product at an affordable price, we ensure that our product meets the needs of
consumers.
TECHNOLOGICAL
A business and its market may benefit or suffer as a result of technological advancements.
An example would be the incentives for technology, the pace of innovation, automation,
research and development (R&D), technical transition, and the level of technical expertise in
a given market. Technology has played an important role in the development of
multipurpose cutting boards. It has become easier and faster for people to prepare cooking
ingredients as a result of this level of innovation. For the expansion of our business, we can
explore new innovations that will provide more functionality and benefit people in their daily
lives.
08
ENTRY STRATEGIES
One of the most difficult aspects of starting a new business is determining the best strategy to start
a firm that can immediately create cash flows, establish customer trust in the product, and
overcome the liability of newness. Our company is having problems starting a business and
selecting a product to produce. To create a product, we must consider the tastes and demands of
the consumers. In addition, we must decide which new market entrance strategy to employ. Then
we chose to employ the adaptive new strategy, which is employed by the majority of new entrants.
An adaptive new entry entails taking an existing idea and enhancing it to produce a new product.
We provide a new product that is different from the present offering while also adding value for
customers.
We chose adaptive new entry strategy because we want to create a new product that takes less
time to create, which means we can take an existing product and make it new by adding value to it.
In this strategy, we created a product by innovating an idea from an existing product. Our
multipurpose cutting board may help housewives tackle a variety of challenges. Our products can
save time and make the works in the kitchen easier. We innovate current products to better fit
different sorts of customers or markets. Our product is suited for use in the home, restaurant,
hotel, or café. As we adopt a consumer-friendly idea, our product is also convenient and safe for
customers to use.
However, there are a few drawbacks to the adaptive new entry strategy that may restrict our
ability to adjust this technique. We must use caution when implementing this strategy in order to
meet our objectives. The first constraint is that the value proposition must be seen as different. The
formulation of a value proposition is critical in a company's business strategy since it may impact
consumer decision-making. We need to create a one-of-a-kind product. We must persuade
potential clients that our product will suit their demands, which will inspire them to purchase our
product.
The second drawbacks are that nothing can be done to prevent a close competitor from replicating
our product. There is always the possibility that rivals would duplicate the product of another
company. Ours is a product that is easily imitated by others. The only way to combat this is for our
company to acquire customer loyalty and improve product quality. We must establish a positive
relationship with potential customers in order to acquire their confidence and commitment to our
product. Furthermore, we guarantee that our product is manufactured of high-quality materials
that will increase the product's lifespan.
The next drawbacks for an adaptable entrant are to keep the idea fresh after first success. If our
product features are replicated, we must discover ways to modify and develop our product to fulfil
the demands of our consumers and to be appropriate for the present scenario. We must do
research on what our customers require from time to time in order for them to remain loyal to us
as we give them with what they require.
09
START-UP
COST
To maintain the financial stability of SAAS Company, all 4 shareholders are required
to contribute RM100,000 each. As part of our capital request, we selected Maybank
Bhd, since Maybank Bhd provides loans to small- and medium-sized businesses that
wish to start a business. RM230,000 has been borrowed and the loan will be repaid
for a period of seven years at a rate of RM3,250 per month with 5% interest. Our
company is a partnership, so any profits or losses will be shared equally among all
shareholders based upon the same contribution from each of us. The following is a
budgeted cost for the start-up of our business which will be incurred as part of this
process.
10
COMPETITIVE ADVANTAGE
SUSTAINABILITY
1. VALUABLE 2. RARE
When the product is valuable in the market the company need to create their product rare and
industry,it can allow the firm to make an uncommon in the market so that it can attract
improvement in term of efficiency and many buyers to buy their product and generate
effectiveness of the product.For example,we have more income.For instant,SAAS Sdn Bhd will create
been produce the multipurpose of chopping board multipurpose cutting board that have many
and it will not be valuable in a long run due to the interesting features and it is very rare since there
competitors who follow the same step as are not many competitors within the same industry
us.Besides,there are many substitutes of cutting but when there is existence of the competitors
board in the industry that offer the same product who offer the same product as SAAS Sdn Bhd,iur
in the market which a made a choices for the product will not be rare anymore.
customer become wide.
11
CONCLUSION
As a conclusion, we decided that starting our own company would be the best choice
for us after researching business prospects and environment. SAAS Company Sdn
Bhd created a one-of-a-kind multifunctional cutting board. We think our product will
always meet our customers' needs and be their preferred choice. We follow a strict
procedure before developing new products in order to provide the greatest possible
experience for our customers, particularly in terms of safety. Our company always
prioritize the safety of the customers. As a new company, customers approval of our
product is critical since it may influence sales. We think that if our company delivers a
good product with a decent service, it will continue on track. We will continue to
improve our product in time to time, to make it always up to date with current
situation.
There are several obstacles in starting our company, such as determining how to
obtain financing and other start-up costs. Initial money is vital when starting a new
company since it will be needed for future growth. We are able to obtain money and
believe we will be able to achieve operational success for many years to come. In
order to assure our company's growth, we must also have a sound business plan. The
company plan also serves as a guideline for us to attain our objectives. We were able
to overcome these obstacles. We feel our product will be successful in the market
since it has its unique value.
To summarize, we hope that SAAS Company Sdn Bhd will be able to prove to the
market that it can enhance manufacturing of cutting board business in an entire year
by competing with other competitors in Malaysia in order to persuade investors who
are interested in the business to make an investment. We hope that in the future, our
product will improve and become the most popular cutting board in Malaysia and
internationally, while remaining remembered due to its special and unique idea
12
REFERENCES
Porter, M. E. (1985). COMPETITIVE ADVANTAGE.
https://www.albany.edu/~gs149266/Porter%20(1985)%20-%20chapter%201.pdf
https://www.viima.com/blog/incremental-innovation
Gregory G.Dess, Gerry McNamara, Alan B.Eisner & Seung Hyun Lee (2019). Strategic
Management, Creating Competitive Advantage (9th ed.) New York: McGraw-Hill Education
13
APPENDIX
COMPANY PROFILE
WWW.SAASKITCHEN.COM
WEBSITE
SAASEXPERTKITCHEN@GMAIL.COM
EMAIL
011-1569785
TELEPHONE NUMBER
04-8999547
FAX NUMBER
PARTNERSHIP
FORM OF BUSINESS
14
APPENDIX
ORGANIZATIONAL CHART
15
APPENDIX
PRODUCT DESIGN:
16