BUSINESS PLAN

2

Ozone Gas Distributor CompanyEnterprise Management BM018-3-3Lecturer: Muhammad Ridzuan Bin Abdul AzizDue Date: 14th December 2012Jeremiah F Mukusu: TP023056Johnson Sentamu: TP022674Mohammed Yahya: TP023363Edwin M Kashangaki : TP023059

ContentsEXECUTIVE SUMMARY4COMPANY BACKGROUND5OBJECTIVES5MISSION5KEY OF SUCCESS6CAPITAL START UP REQUIREMENT6EXTERNAL ENVIRONMENT ANALYSIS7PESTEL ANALYSIS7PORTERS FIVE FORCES8INTERNAL ENVIRONMENT ANALYSIS9RESOURCES9CAPABILITIES10CORE COMPETENCIES10SWOT ANALYSIS11TOWS MATRIX12MARKET AND COMPETITORS15MARKET SEGMENTATION16WHY PERFORM MARKET SEGMENTATION?17TARGET MARKET18MARKET POSITIONING18MARKETING PLAN19SIZE OF THE MARKET21MARKET GROWTH22COMPETITORS23OPERATIONAL PLAN25LOCATION25EQUIPMENTS25LEGAL REQUIREMENT25QUALITY CONTROL25HUMAN RESOURCE PLAN26ORGANIZATIONAL STRUCTURE26RISK AND CONTINGENCY28FINANCIAL PLAN29STARTUP COST FOR OZONE GAS DISTRIBUTOR29INCOME STATEMENT FOR OZONE GAS30CASH FLOW FOR OZONE GAS31INDIVIDUAL JOURNAL REFLECTION33JOURNAL REFLECTION FOR MOHAMED YAHYA SAID (TP023363)33JOURNAL REFLECTION FOR JOHNSON SENTAMU (TP022674)37JOURNAL REFLECTION FOR JEREMIAH F. MUKUSU (TP023056)41JOURNAL REFLECTION FOR EDWIN M KASHANGAKI (TP023059)42REFERENCES45

EXECUTIVE SUMMARYIn todays world, different companies run away from bankrupt from one or another reason; by avoiding this enemy in the business, different strategies have to be planned initially so as to overcome the situation. Business plan is the projection of the business in future and what is planned is how much the business would be staying in competition by their mean of production or services. In this report whereby a business plan would be drafted and explained to whatever extent of understanding and the business plan intended to be drafted would from Ozone Gas Distributor Company which is located in Malaysia. Furthermore, business plan would be all under the product of Ozone gas which is distributed to the citizen of Malaysia and hence different factors in the business plan would be discussed on how this product would be in the market for the long term. This Gas has got different competition in the market, hence external and internal environment of the Company would be discussed under the specific categories of SWOT analysis and PEST analysis.Moreover, to understand the familiarity of the product there should be competitor analysis to identify weakness and strength of other gas which are currently distributed along with Ozone Gas and hence SWOT analysis would play major roles to identify what the reason of getting funds regard on the strength of the product.There is always contingency plan whereby more risk analysis would have to be evaluated in case the main plan fails, and hence in this report contingency plan would be discussed so as to maintain the probability of success in the business plan of the Ozone Gas.

COMPANY BACKGROUNDOzone Gas Distributor Company is the Malaysia Company which currently has 5 year of experience in existing in the market by distributing around Kuala Lumpur. It is named Ozone Gas Distributor Company because of the gas produced has been named to be Ozone which is typically as the name of among the seven layers exist in universe which particularly named as Ozone (03). However, Ozone is a gas that occurs naturally in our atmosphere. Most of it is concentrated in theozone layer, a region located in the stratosphere several miles above the surface of the Earth. Although ozone represents only a small fraction of the gas present in the atmosphere, it plays a vital role by shielding humans and other life from harmful ultraviolet light from the Sun. Human activities in the last several decades have produced chemicals, such as chlorofluorocarbons (CFCs), which have been released into the atmosphere and have contributed to the depletionof this important protective layer. When scientists realized the destructive affect these chemicals could have on the ozone layer,international agreementswere put in place to limit such emissions. OBJECTIVESSimilarly, this companys goal is to supply this kind of gas so as to make safe to the environment since this gas is environmental friendly, also the gas provided has got several advantages to the environment including burning longer, cleaner fumes which are not are not poisoned and safety to human being; eventually this gas is more affordable to and convenience to be used. This company sales this gas and makes Malaysian Ringgit (RM) 120000 and has got total of 15 employees; these employees including 7 deliveries, 5 are carriers, 2 recipients and 1 head officer in the branch. Among problems which are currently influenced by Gas which are in the market today is the gas which produced is not convenience and most of them are not affordable to many level of target users. MISSIONMoreover, the mission of this Company is to distribute gas which would be mostly targeted to almost all level of users especially people who are middle class which is why Companys goal is to make gas which is affordable.

KEY OF SUCCESS Furthermore, what have been succeeded so far; this Company has got good competition with existing gas distributor in Malaysia like PETRONAS, and also good market to their potential customers who really like Ozone Gas as their cooking gas which is burning longer and safe to use.CAPITAL START UP REQUIREMENTThe Ozone Gas Distributor Company need grant through commercial banks so as to expand the production and quality for the product, the funding plan is the financial plan covering the performance of the entire project. It includes direct as well as indirect support in the form of funding infrastructure, raw-materials and own contribution. Below table shows the capital to be borrowed for the improvement of Ozone Gas Distributor Company Production.Contribution SourcesTotal Cash (RM)

Industry Check-off Contribution1 Million

Gas Producer Group Research Fund0.5 Million

OZONEGAS Management Committee Request = 1.5 Million

As in the above shows that the company requires RM 1.5 Million and the payment period would be 10 years with interest rate of 6%. However the grace period is 3 years.

EXTERNAL ENVIRONMENT ANALYSISPESTEL ANALYSIS Political and legal Environmental protection laws Green technology Local, state and federal laws Patent laws

Economic Level of disposable income Tax rates Price fluctuation of the product General demand of the product Income differences among consumers

Socio demographic Lifestyle Buying habits Level of education Population changes Health consciousness

Technology Green technology Gas filtration technology Purification

Environmental Waste disposal Availability of natural resources Ozone depletion Global warming

PORTERS FIVE FORCES Threats of substitutesThreat increases when Relative prices of substitutes decline for example prices of electricity decline Consumer switching costs decrease that is to say if costs of switching from gas to electricity or any other related product decrease the threats will increase

Threats of new entrants Gain economies of scale: It is not as simple to add a branch in an area in this line of business, following regulations and safety rules, inspections and permit needs to be obtained before one can invoke in this business. Gain technology and specialized know how: To obtain chemical engineers with the right experience and innovation would require time. Also time is required to study the target market and know the extent of their level of technology Establish customer supply: As mentioned earlier, customer loyalty is steadily built over a period of time with accordance to the quality of service provided by the organization Develop adequate distribution channels: To establish a fixed distribution channel for a particular product means that the customers are loyal and rely solely on your product, something which only happens over a long period of good services.

Bargaining power of buyers The amount of bargain power of Ozone gas is owned by firms who can buy large amount of Gas also industries which regularly buy Ozone gas. However, since main user are in middle class, so those apartment wishes to buy Ozone with large amount the can have bargain power in order to supply to the tenants.

INTERNAL ENVIRONMENT ANALYSISRESOURCES This comprises of two parts the tangible and intangible resources. Tangible resources Intangible resources

Human capital Technology

Equipment Human resource

Specialized knowledgePatents and copyrights

Talented key employeesBrand name

Strong network of suppliers Customer loyalty

Well organized, effective, efficient management structureConsistency in good customer service

CAPABILITIESCapabilities Description

Inbound logistics Purchasing, obtaining, storing, distributing and managing services

Operations The processes, assets and costs incurred to complete the service. Facilities, workers, environment protection.

Outbound logistics This involved all the resources, capabilities and process required to offer the service. For example delivery vehicles, order picking, distributor, customer supply chain.

Sales marketing This is considered since its associated with marketing the service the company has to offer. It comprises of sales force, advertising, promotion, market research and website.

CORE COMPETENCIES These are accomplished by evaluating the companys resources and capabilities and benchmarking. Although benchmarking may be accessed through efficiency and effectiveness, efficiency type of measures should be in conjunction with standard financial measure of financial benchmarking. Then assess the companys resource, capabilities and competencies to the competition or industry to know if theres a competitive advantage.

SWOT ANALYSIS

STRENGTHS We have very efficient and effective distribution channels. We have a convenient and quick system to deliver gas to the customers. Our product (Gas) is a standardized product and of good quality. The scale of our target is large because our targets are the low income earners and the middle class. The customer loyalty is not bad because the target market can hardly acquire the substitutes.WEAKNESS Inexperience in the Gas field since we are just starting up. Poor or No access to distribution due to location of some of our customers. Since we are still new in the market, we are working on a small scale. Unreliable product service delivery to some customers due to geographic factors.

OPPORTUNITIES Lower personal taxes on our customers that is to say our target market are the low income earners who pay low taxes. Political stability in the country that is to say in governance so as to maintain the implementation of similar plans and ideas. Improve on the transport network in remote areas which is mainly our target base because they are the low income earners. Governments advocate to go green to reduce on cutting on trees will boost the gas sector and the low income earners will be able to acquire our product.THREATS Increase in government tax that is to say tax levied on gas and also to the customers Changes in government that is to say different government have different ideas and plans. Changing customer base that is to say customer changing from our product to a substitute. No or poor access to the customers due to geographic problems, hazards.

TOWS MATRIX Strength

We have very efficient and effective distribution channels. We have a convenient and quick system to deliver gas to the customers. Our product (Gas) is a standardized product and of good quality. The scale of our target is large because our targets are the low income earners and the middle class. The customer loyalty is not bad because the target market can hardly acquire the substitutes.

Weakness

Inexperience in the Gas field since we are just starting up. Poor or No access to distribution due to location of some of our customers. Since we are still new in the market, we are working on a small scale. Unreliable product service delivery to some customers due to geographic factors.

Opportunities

Lower personal taxes on our customers, that is to say our target market are the low income earners who pay low taxes. Credits crunch that is to say the rate of credit crunch and inflation. Increased tax rates on related substitutes. Income differences in consumer groups.

Maxi max

Create other distribution channels to be able to reach out to the customers in remote areas. Display the available products on our website. Display weather conditions in the distributed areas.

Mini max

Acquire the necessary skills to be competitive in the industry. Begin distributing to the remote areas despite of their location. Determine the weather in remote areas to in order to assess how it is going to be in remote areas. Hire and train personnels with the required technical ability. Do nothing as assessing the competitors stance.

Threats

Increase in government tax that is to say tax levied on gas and also to the customers Changes in government that is to say different government have different ideas and plans. Changing customer base that is to say customer changing from our product to a substitute. No or poor access to the customers due to geographic problems, hazards.Maxi min

Advertise the product to a variety of people in order to boost the market. Offer discounts to daily customers to develop the customer loyalty.

Offer free delivery service to customers that purchase more than one product. Mini min

Lower prices of gas and delivery during seasons of bad weather (rainy season) that is to say in areas that experience floods. Conduct a viable research before entering some markets. Opening up branches in remote areas to avoid problems during bad seasons.

MARKET AND COMPETITORSMarketing is a continuous activity performed at a daily bases in order to sell a product or service to a customer. It aims at winning a customers attention towards your product and continuously building a good relationship with the customer in order to make him/her a loyal client. Marketing research and analysis is very crucial to the success of any business. According to Peter Vessenes (2005), cash may be king, but marketing is everything.People tend to immediately link marketing to advertisement and dwell on the amount it would cost them to advertise their service or product. However the basic definition of marketing is the technique at which products or services are offered up for sale. Hence marketing should be considered more of an investment than a cost or expense since the outcome of good marketing strategies may be observed over a long term. Marketing process can be equated to sales, because this is the primary goal of marketing. Additionally, the key of success in making sales lays on consistency of the marketing strategies.Key Components of Marketing

Customer-focused mentality

This generally means ensuring the customers demands and needs are met. This is the first and most important component which builds up the foundation of the marketing process. The Ozone Company achieves this through conducting surveys to obtain customers requirements.

Companys philosophy and plans

After establishment of the companys philosophy, a plan is deduced to provide structure and guidance for the strategies aimed at improving business relationships and boosting up sales. The marketing plan can help the company focus its resources to the right customers that is the target consumers. Doing so helps to increase the return of investment.

Creating value for the Customers

The process of marketing involves communicating, educating, convincing and motivating the customer on the benefits of the companys product or service. Often involves answering the question Why should I choose your product or service?

Previously the 4Ps of marketing, that is; product, placement, price and promotion was commonly used for creation of marketing strategies. However 4Ps alone is not sufficient in the current competitive world. Therefor to devise an effective marketing strategy which covers all key areas required to maximize the sales of the product or services, the following is considered: Market Segmentation Target Marketing Market Positioning Market analysis Marketing Plan Promotion StrategiesMARKET SEGMENTATIONMarket segmentation is a process of logically dividing the market of the product into smaller and more manageable parts/pieces. According to Kotler (2012), Market segmentation is the process of dividing the total heterogeneous market for a good or service into several segments. Each of which tends to be homogenous in all aspects.

WHY PERFORM MARKET SEGMENTATION?The Subgroups created as a result of market segmentation are better manageable and allow the company to focus on the segments which show a greater promise of succeeding and best fit the companys competitive advantage and strength. Market segmentation also helps to focus the companys resources to the appropriate areas.

Small Business Owners

According to the consumer survey conducted by our team on the consumption of cooking gas in Malaysia, a large market of this product lies with the small businesses (5-25 employees) such as small restaurants and cafeterias operating under a limited budget trying to cut down operational costs.

Middle Class IndividualsMiddle class individuals include the university students, who stay in rented accommodations. Some of the working class individuals with families and making enough to get by.

IndustrialAnother strong market lies with the industrial area whereby a reliable and steady source of energy is required to facilitate the completion of the final product. Example of such industries include the Berjaya steel production sdn.bhd

TARGET MARKETGas as a mere source of energy can be used for various purposes, hence providing a wide market to select from. The target market chosen by the Ozone Company is the middle class individuals including residential owners and students seeking efficient affordable gas for their daily use. The selection was made due to the size of the market segment; the growth and level of competition that was observed The Companys strengths were also a big influence on the target market selection thus ensuring effective capitalization of the companys resources.MARKET POSITIONINGMarketing positioning is a technique of establishing a particular perception of your product to the eyes of your target customers. This is what differentiates the companys product from its competitors. The Ozone gas is a certified green product meaning that it is environmental friendly produces cleaner flames and hence lasts longer compared to its competitors. A good market positioning strategy is what defines the companys competitive advantage towards its competitors.According to Kotler (2012), In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the mind of their target market for its product, brand or organization.MARKETING PLANThe marketing plan will be based on the Market mix, the 4Ps, that is Product, Price, Place (Distribution), Promotion.Product

The Brand name of the Gas is Ozone gas with the logo of (03)This is a top quality product with cleaner flames that last longer. The product is green certified; that is, environmental friendly.The product also comes in different sizes according to the customers preference. The mouth of the cylinder on the top contains a lead top which automatically closed to stop supply of gas in case of leakage. This is a safety precaution.The innovation of placing a meter at the front end of the gas cylinder so as the customer is aware of how much of the gas is still available before it runs out gives this product the edge and advantage.

PriceThe Price of the Ozone gas is relatively lowers than most of its competitors. This is due to the reusability advantage of the cylinder. The first time purchase price is slightly higher due to the purchase of the cylinder. From the second purchase onwards it is lower because of the re usability features of the cylinder, thus overall lower price of the product. A discount is provided to the wholesalers to encourage them to invest in our product.

DistributionThe company contains direct distribution channels, and also wholesalers and retailers in order to cover a wider consumer base. The targeted distributed areas are the residential areas, accommodations, schools and restaurants. To facilitate distribution we also support online purchases and orders which will directly delivered to the destination of the customer. This increases the availability of the product.

PromotionThe companys promotion strategy is focused mainly on reaching the target market. Hence we focus on setting display counters outside accommodation areas displaying the result and effectiveness of the product. Other means include printed flayers and posters. Another strategy is sponsoring small local competitions such as football games and dances. Newspaper forums are another reliable and cheap way of spreading the news to the intended consumers.

SIZE OF THE MARKETThe size of the market segment was a big influence in the selection of the target market. According to the last census conducted in 2010, the population of Malaysia was reported to have doubled in size with a growth rate of 2% from 13.7 million people in 1980 to 28.3 million people in 2010. (Malaysia, the Millennium Development Goals at 2010).

(Source: http://www.themalaysianinsider.com/malaysia/article/malaysias-population-hits-28m-amid-slowing-growth)

The same development project reveals that more than two thirds of the Malaysian population is accounted at the middle class level, including international students and foreigners. This is approximated at 18.4 million people. With our focus on the middle class individuals, these records clearly demonstrate a sizable market to which the company can focus on.

MARKET GROWTHThe market growth has been estimated with consideration to the growth in population, the economic growth rate and the increase in demand of gas. An increase in population alone cannot be considered enough evidence for the growth in middle class individuals which is our target market. Therefore inco-operating statistics of the growth in the economy, this shows a reduction in the lower class and an increase in the middle class society. According to the governments ETP annual report made by the Ministry of Energy, Green Technology and Water (2011) on oil, gas and energy says that, It is estimated that there would be more than 500 million standard cubic feet per day (mmscfd) of additional latent gas demand by 2020. This signifies the growth of the market for the ozone company and provides an opportunity for sales growth.According to the Minister of Energy, Green Technology and Water, Dato Sri Peter Chin Fah Kui, The energy sectors contributions to our GNI are expected to rise from RM110 billion in 2009 to RM241 billion in 2020. Hence, the energy sector needs to be more efficient and resilient to be able to deliver adequate and reliable energy supply to support our countrys rapid growth against a backdrop of depleting energy resources as well as escalating and volatile energy prices. He adds on by saying, Malaysias direction towards a green economy is an essential part of the ETP, along with the assurance of sustainable and sufficient energy supply to all at reasonable and affordable prices.This is clear evidence on the market growth opportunity which presents itself in the energy provision sector, especially for the Ozone Company which focuses on producing green certified products.

(Source: http://www.eia.gov/countries/country-data.cfm?fips=MY)The above chart show the findings of the research conducted by the Independent Statistics & analysis US Energy Information Administration (EIA) which clearly shows the increase in consumption of natural gas in Malaysia. This is vivid evidence of the market growth of this sector in the country.

COMPETITORSOzone Companys biggest competition is the Shell Company and Gas Malaysia Bhd. Below is a table showing the comparison between the three companies. OzoneGas Malaysia BhdShell

Market Share A quarter of Peninsular Malaysias market Almost a third of Sarawaks market. A third of Peninsular Malaysias market Half of Sarawaks and Sabahs market. Almost a third of Peninsular Malaysias Market

Major Customers Homes Businesses Industries

Homes Businesses Industries

Homes Businesses Industries

PricingLowest prices, compared to both shell and Gas Malaysia BhdLower prices of product compared to shell.Price is reasonably low, but still exceeds Ozone and Gas Malaysia Bhd prices

Product / Service Range Natural Gas Natural Gas Natural Gas Oils and Lubricants Fuels (example diesel, petrol)

Product / Service QualityNatural Gas Products Cleaner fumes Burns longer Environmental friendly Green certifiedNatural Gas Products Clean fumes Less waste Environmental friendly

Natural Gas Products Clean fumes Environmental friendly

Brand RecognitionThroughout Peninsular Malaysia.Throughout Peninsular Malaysia, Sarawak and SabahThroughout Peninsular Malaysia, Sarawak and Sabah

AlliancesNoneNoneProduction sharing contract with Petronas

Promotion Strategies Posters and flayers Newspaper forums Tv advertisement Posters Newspaper forums

Tv advertisement Billboards Newspaper forums Event sponsorship

Distribution Methods Wholesalers Retailers Wholesalers Retailers Wholesalers Retailers

OPERATIONAL PLAN LOCATIONAs proposed, Ozone gas will locate its market into different area close to Private and public institutes, the Company contain direct distribution channels, and also wholesalers and retailers in order to cover a wider consumer base. Ozone Gas Company will focus on the market segments which show a greater promise of succeeding and best fit the companys competitive advantage and strength for the company. Since gas is the major part and important product to our daily lives, the targeted distributed areas are the residential areas, accommodations, schools and restaurants. To facilitate distribution we also support online purchases and orders which will directly delivered to the destination of the customer. This increases the availability of the product. EQUIPMENTSOrders will be placed to either by phone calls or emails by customers, where 03 companies provide them by delivering the product to the doorsteps of the customer certain equipments and machines are needed in order to make this business to stand out strong and competitive. There should be means of transport from the company supplier to the customers, such as Trucks, motorcycles and warehouses. On distributing these 0zone gas cylinder gases motorcycles will be of greater advantages were the delivery will be on time from business branches to the customer. Trucks will be used to supply cylinders to the warehouse branches, were they are kept on racks and well protected.LEGAL REQUIREMENT The brand 0zone gas will be registered under Malaysian Ministry of Domestic Trade, Co-operatives and Consumerism and it will be approved by halal product approval certification Development Corporation. The Ozone gas is a certified green product meaning that it is environmental friendly produces cleaner flames and hence lasts longer.QUALITY CONTROL The 03 will have supervisor who is responsible for quality control in each shift during the procedures and till the delivery of the product, including the inventory control, finished product quality meets the health and safety regulations. The mouth of the cylinder on the top contains a lead top which automatically closed to stop supply of gas in case of leakage. This is a safety precaution.HUMAN RESOURCE PLANThis part describes positions and outline how the human resource organization will be structured and who will be responsible for what duties and which part.ORGANIZATIONAL STRUCTUREOzone Gas Company is registered under Sdn Bhd, formerly known as Berkat Semangat Sdn Bhd. Current organizational structure is flat structure. Advantage of having flat organizational structure is to make communication easier within the organization and departments, as well as minimizing the cost and eliminating unnecessary processes.

Body of DirectorsCEOTechnical and zonal operatorHuman ResourceFinancial accounting and materialsCommercial marketingNew product Development

The board of directors compromises from our investors and shareholders. The CEO will be primary connection between the board of directors and the company itself. He/she will be responsible for reporting to board on the companys activities, seeks approval on major strategy. His/her main duties will be setting the goals and objectives of the company, formulating corporate strategy and monitoring daily operations. Technical and zonal operator department is responsible for technical issues such as preservation of the product quality to make sure they are kept in a safe place and responsible for the zonal operation such as from one zonal to other. Also they are responsible when employees are being shifted from one zonal to another. HR and Financial accounting and materials department is responsible for handling companys financial operations, including budgeting, cost management, payroll, preparing reports and financial statements in compliance with legal requirements and policies as well as HR functions, including recruitment and selection of staffs, decide on job description, payrolls and incentives, conduct performance appraisals and planning future staffing requirements for the company. Commercial Marketing and training department ensures providing sales support of the product, advertising and promotions, public relations, building brand recognition as well as providing the company regular on-going human development and training. New product development department constantly seeks ways to improve our products, in order to meet changing need of customers and customers expectations. Department is fully responsible to support product research and development team and always look for continuous new product development based on our customers taste and preference. Ozone Gas is the company that cares for people and community as they provide career opportunities and support for fresh graduates, single mothers and entrepreneurs to give an opportunity to improve their quality of life and their family. Through company goals and its achievements, with this proposal special we hope to help people live better and to contribute more to society at large. As mentioned before Ozone Gas Company operates as growing company, hence our each new branch will hire approximately 6 people who would be allocated into daily shifts according to work schedule. In each shift there would be supervisor or shift runner who is responsible for running the shift, supervising the staffs and inspecting quality control

RISK AND CONTINGENCY RISKS AND CONTINGECIES STRATEGY

Ozone Gas Production Risk, The production of the product can faces risks outside these market and economic shifts. For example, a delivery gas using transportation.The company can use a proper transportation infrastructures like safety motor cycle, to insure the safe of the product to the market

Financial risks (profits and losses) in this case the company will not have adequate cash flow to meet financial obligations.The management of Ozone gas distributor Company can use the total quality management tool so as to achieve competitive advantage from its competitors and avoid losses so as to increase profits.

Ozone Gas Distributor Company is also threatened by competitor risk, and environmental risks like political instability, economic crisisIn order to overcome these risks the management of Woman care should also use Ansoff matrix growth strategy. The Ansoff matrix will help Ozone Gas Company to focus on its present and potential products and markets. This will ensure that Ozone Gas acquires and retains its customers through market penetration, product development, market development and diversification. By so doing the company will ensure profits, large market share and competitive advantage, thus protecting the company from failing in case of any environmental risks.

Summing up, the overall consideration for risk management is important for the business of reflexology shoes; due to the speed of transformation and the adaptability and demand of the Ozone Gas market.

FINANCIAL PLANSTARTUP COST FOR OZONE GAS DISTRIBUTOR ITEMESTIMATED COS (RM)

Equipment And Supply Cash Registers (3 @ 3000) Computers (5@ 2000) Fax Machine Supplies Modem90001000040010000200

Subtotal 29,600

Furniture Desk (5 @ 300) Chairs (10@ 70) 1500700

Subtotal 2,200

Vehicles Supplier Truck Delivery Motor Cycle (5 @ 6000) 40,00030,000

Subtotal 70,000

Remodeling Electrical Work Paint Carpet150030004000

Subtotal 8,500

Legal and accounting fee9000

Total 119,300

INCOME STATEMENT FOR OZONE GAS Year 2010Year2011Year2012

Sales Direct cost of saleOther production expensesTotal cost of saleGross profitGross margin

ExpensesPayrollSales &marketing ,promotionDepreciationDisplay inventoryUtilitiesInsurancesPayroll taxesOthersTotal operating expenses

Profit before interest & taxes

Taxes incurred

25,5000,00 RM15,5000,00RM-10,000000RM16,500,000RM60%

8,000,000RM700,000RM55,00080,00065,00098,000-4,970,00013,338,000RM

3,162,000RM

1,000,000RM

30,500,000RM18,500,000RM-12,000,000RM22,500000RM60%

11,530,000RM700,000RM55000050,00065,00098,000-4,970,00016,838,000RM

3,662,000RM

1,200,000RM45,500,000RM20,500,000RM-25,000,000RM24,250,000RM60%

12,500,000RM700,000RM55,00050,00065,00098,000-6,000,00018,838,000RM

5,412,000RM

165,000RM

Net profit2,162,000RM2,462,000RM3,762,000RM

The income statement highlights the income of the business that is produced from revenues (sales) and the expenses that the business incurs over the 3 years respectively. The gross margin and the net profit show how much profit the business retains per annum with respective expenses during the Ozone Gas Production.

CASH FLOW FOR OZONE GASYear 2010Year 2011Year 2012

Cash received

Cash from operationCash salesCash from receivablesSubtotal cash from operations

Additional cash receivedNew borrowingNew other liabilities(interest-free)New long-term liabilitiesSales of other current assetsSales of long-term received New investment receivedSubtotal cash received

ExpendituresExpenditures from operations Cash spending PromotionUtilitiesInsurancesOthersSubtotal cash received

Additional cash spent TaxesPrincipal repayment of current Other liabilities principal repayment Long term principal repaymentPurchases other current assetsDividendSubtotal cash flow 20,000,000RM

25,500,000RM

25,500,000RM

------25,500,000RM

80,00,00070,00065,00098,00049700008,233,000RM

1,000,000--500,000--9,733,000RM

30,500,000RM

30,500000RM

------30,500,000RM

11,500,00070,00065,00098,000497000011,733,000RM

1,200,000--500,000--1,243,300RM

45,500,000RM

45,500,000RM

------45,500,000RM

12,500,00070,00065,00098,000600000012,733,000RM

1,650,000--500,000--14,883,000RM

Net cash flow10,797,00012,097,00025,617,000

Cash balance10,797,00022,894,00047,511,000

The cash flow statement depicts how the cash is spent and its entire turnover to the specific expenditures being incurred by the business. As seen above, the business is not subjected to numerous expenses. Hence the cost can be controlled, despite the fact that sole traders are prone to suffering unlimited liability.

INDIVIDUAL JOURNAL REFLECTIONJOURNAL REFLECTION FOR MOHAMED YAHYA SAID (TP023363)INTRODUCTIONWhen taking this report into another side of coin, we can actually see that there is high need of organization to manage business plan before they seek funds from bank; however in this report different stages of designing business plan and knowledge has been gain successfully. Apart from gaining knowledge from work done, also teamwork has been learnt to manage working in group under different areas of study and time management was also considered as the success in this report. However, this report was categorized as a group but yet there were work distribution among the group members and it happened to be given External Environment analysis and more specifically on PESTEL analysis. PESTEL analysis in the business plan is important to know how Ozone Gas Distributor Company would have to evaluates and project itself externally.RESEARCH PROBLEMSDoing research regarding on external environment in the organization is cumbersome somehow and also doing exactly using PESTEL analysis requires more technique of getting more towards the specific point. Furthermore, theory which is intended to be used in the organization has to be vivid and can be used to project in future expectation of organization. Doing external environment has to be also deployed an understanding of surround environment of organization. But yet, research has been provided to analysis what is all surround organization and will they affect a particular organization externally.PESTEL ANALYSISPESTEL analysis stands for "Political, Economic, Social, and Technological, Environmental and Legal analysis". It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration.Political factors, or how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided. Furthermore, governments have great influence on the health, education, and infrastructure of a nation.Economic factorsinclude economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economySocial factorsinclude the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an ageing population may imply a smaller and less-willing workforce (thus increasing the cost of labour). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).Technological factorsinclude ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.Environmental factorsinclude weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness to climate change is affecting how companies operate and the products they offer--it is both creating new markets and diminishing or destroying existing ones.Legal factorsinclude discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

Figure 1: PESTEL ANALYSIS RESEARCH PROCESSAfter we have seen how PESTEL would be evaluated, but combine these PESTEL analysis and Ozone Gas Distributor Company would have to use this theory and analyzed according to the environment which is surrounding in Malaysia and particularly in Kuala Lumpur. Then PESTEL would have to process the quality of product which is Ozone gas after being evaluated in the surrounding. However, PESTEL would not merely taken as a tool to analyze the environment, rather different steps has to be taken in order to jump into the conclusion of using PESTEL analysis as a tool. The following are the steps used for Ozone Gas Distributor Company.As the first step is to know what are the industry's dominant economic features; asindustries differ significantly on such factors as market size and growth rate, the number and relative sizes of both buyers and sellers, the geographic scope of competitive rivalry, the degree of product differentiation, the speed of product innovation, demand supply conditions, the extent of vertical integration, and the extent of scale economies and experience/learning curve effects. In addition to setting the stage for the analysis to come, identifying an industry's economic features also promotes understanding of the kinds of strategic moves that industry members are likely to employ. Furthermore, the second step is to know what kinds of competitive forces industry members are facing, and how strong is each force; sincethe strength of competition is a composite of five forces and these factors are as following.1. Competitive pressures stemming from the competitive manoeuvring among industry rivals.2. Competitive pressures associated with the market inroads being made by the sellers of substitutes. 3. Competitive pressures associated with the threat of new entrants into the market.4. Competitive pressures stemming from supplier bargaining power and supplierseller collaboration.5. Competitive pressures stemming from buyer bargaining power and sellerbuyer collaboration. The nature and strength of the competitive pressures associated with these five forces have to be examined force by force to identify the specific competitive pressures they each comprise and to decide whether these pressures constitute a strong or weak competitive force. The next step in competition analysis is to evaluate the collective strength of the five forces and determine whether the state of competition is conducive to good profitability. Working through the five-forces model step by step not only aids strategy makers in assessing whether the intensity of competition allows good profitability but also promotes sound strategic thinking about how to better match company strategy to the specific competitive character of the marketplace. Effectively matching a company's strategy to the particular competitive pressures and competitive conditions that exist has two aspects: (1) pursuing avenues that shield the firm from as many of the prevailing competitive pressures as possible, and (2) initiating actions calculated to produce sustainable competitive advantage, thereby shifting competition in the company's favour, putting added competitive pressure on rivals, and perhaps even defining the business model for the industry.Moreover, the third step is to know what forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability. SinceIndustry and competitive conditions change because forces are in motion that create incentives or pressures for change. The first phase is to identify the forces that are driving change in the industry; the most common driving forces include changes in the long-term industry growth rate, globalization of competition in the industry, emerging Internet capabilities and applications, changes in buyer composition, product innovation, technological change and manufacturing process innovation, marketing innovation, entry or exit of major firms, diffusion of technical knowhow, changes in cost and efficiency, growing buyer preferences for differentiated versus standardized products (or vice versa), reductions in uncertainty and business risk, regulatory influences and government policy changes, and changing societal and lifestyle factors. The second phase of driving-forces analysis is to determine whether the driving forces, taken together, are acting to make the industry environment more or less attractive. Are the driving forces causing demand for the industry's product to increase or decrease, are the driving forces acting to make competition more or less intense, will the driving forces lead to higher or lower industry profitability.After knowing these steps then and only then external environment would be able to be analyzed by using PESTEL analysis in term of political on what degree should stay in along what politics issue in Malaysia regarding on cooking gas distribution to the citizen and in term of economic, environment, social, technology and legal issue.

JOURNAL REFLECTION FOR JOHNSON SENTAMU (TP022674)INTERNAL ENVIRONMENT ANALYSISFirst and fore most in the Ozone Company we carried out the internal environment analysis which is the final step in gathering data for environmental analysis. It consists of identifying resources and capabilities in the form of the value chain, finding competencies and determining what competitive advantages hopefully sustainable the organization has. This internal environment assessment alongside with external evaluation both macro and micro environment done in the business plan provide all the information needed to do a complete analysis. The internal environment assessment comprises of the following: Resources, capabilities (value chain analysis) and core competencies. Below is a detailed analysis of the internal analysis done?

Resources In Ozone Company, we have both tangible and intangible resources that is to say some of the tangible resources we have are very powerful and talented human resource where by every department has the necessary qualified and friendly staff, we also acquired enough land to set up a plant for us to produce our product and also acquired the necessary equipment to help us run our company effectively and efficiently and finally the other tangible resource we have is the organization in the company as everyone knows their role which helps in the running of the company. The intangible resources the company has include highly effective technology that is to say order system as customers do not have to go the company to get the product as they just go online and insert all the details and receive the product at their doorstep.

Capabilities Ozone Gas Company has a good inbound logistics which cover everything that has got to do with purchasing, storing, distributing, and managing material and services. The Gas Company also offers a wide range of services to its esteemed customers as they dont have to look for the product, just a phone call away as the delivery service is good and also Ozone Gas Company has various branches where customers can acquire the product from. The company also has a strong sales and marketing team which helps in marketing the product to the general public for example the website so as to increase sales. The Ozone Gas Company also has an outstanding outbound logistics which encompasses all of the resources, capabilities and processes needed to distribute the gas product to the customers and outlets.

Core competencesHere we assess the companys core competency that is to say we evaluate the resources, capabilities and benchmarking. Benchmarking will be done on several levels that is to say primary competition, prior performance and industry. And as part of the benchmarking capabilities the researcher has set up a chart of weighted key success factors which will be shown later on. Identifying Sustainable Competitive advantageBelow is a recap of the resources and capabilities of Ozone Gas Company.Resource/ Capability RareValuableNon-substitutableNon-imitableExploitable

Owners knowledgeYesYes Yes Yes Yes

Financial resourcesNoSomehow No Yes Somehow

Location YesYes Somehow Somehow Somehow

Marketing skills No Yes YesYes Somehow

Hiring skillsSomehow Yes No YesYes

Customer service Yes Yes NoNo Yes

Below is a table to show the Key success factors of the Ozone Gas CompanyOzone Gas CompanyGas Industry

Key Success Factor WeightRatingWeighted scoreRating Weighted score

Quality of products5%80.3090.40

Reputation 10%60.7080.90

Financial resources 10%40.4052.00

Knowledgeable sales staff5%70.3561.20

Location 10%20.2061.80

Product selection general 10%50.5080.50

Product selection (owner)20%51.0051.00

Quality of available Gas products30%82.4061.80

100%5.859.6

The resource based view theory emphasizes the internal capabilities of the organization in formulating strategy to achieve a sustainable competitive advantage in its markets and industries. The resource based theory relates to the above internal environment analysis in the following ways: Resources The resource based view theory draws upon resources and capabilities that reside within the organization for it to achieve a sustainable competitive advantage. In Ozone Gas Company like stated above we have both tangible and intangible resources. Among the tangible resources the company has: enough equipment to run the company, enough human capital to acquire the needed equipment. The total workforce employed and their productivity as measured by a criteria known as profit or sales per employee form a tangible resource. Some of the intangible resources the company has include: the technological resources like the order system, website and the creative innovation of the owner, intellectual resources like patents and copyrights

Core CompetenceA core competence should provide access to a wide variety of markets that is to say Ozone Gas Companys capabilities in manufacturing of gas products thus enabling the company leverage or gain better advantage than its competitors, a Core Competence also should make a significant contribution to the perceived customer benefits of the end products for example Ozone Gas Company has distinctive capabilities in delivery which allow it to distribute its product to large number of people.

JOURNAL REFLECTION FOR JEREMIAH F. MUKUSU (TP023056)During the completion of this proposal business plan assignment I have gain experienced on different sections based on Business Plan I have learn more on marketing &competitor as well as operational Plan as an IT student. By doing this assignment it has helped me gain experience, different challenges on how to develop business Plan for Ozone gas company as a selected Company, apart from that I learn important terms needed to be considered during the development of Ozone gas business Plan I also learn on how to intervene the market and come up with the target market, classify different types of competitors that may challenge our company In market segmentation, I also have learned how to come up with the organizational structure and distribute task and outline who is responsible to which part and the division of labour.With the corporation among the team members we manage to achieve the goal for the Project. At the beginning of the project the team couldnt have any idea for the Business Plan; we decide to spend time researching on different sample of business plan with the use of Business tools such as SWORT analysis, PEST analysis. Based on SWORT analysis I learned that its allowing the business manager to develop strategies that will exploit competitors advantages and protect against internal weakness.

JOURNAL REFLECTION FOR EDWIN M KASHANGAKI (TP023059)Its a great relief to be writing this chapter, for it means that our team has finally managed to attain its end goals. The journey has been educative and challenging, having its ups and downs, but we managed to set individual differences aside to reach a greater achievement. Our team consisted of five members, four members from the same specialization course (NC) and one member from a different course (IT). The Teamwork theory developed by Tuckman best describes my experience throughout this journey. It is amazing how this theory has been useful in practical since most of the theories look good on paper but do not really comply with real world scenario and hence become hard to practice. So using Tuckmans stages of group development, I will go through each stage by describing its application in this particular group.Forming phaseForming of this group wasnt too difficult since all the members have been friends at a social level and all come from neighbouring countries. Though the formation of this group was due to frequent encounters which we predicted would make it easier to have meeting and discuss what is to be done and check on the project progress. We had not worked in any other projects together, but the determination shown by each individual was inspiring enough to place trust in attaining the project goals. We tried our best to meet every after the common modules we had together, that is; after Enterprise Management module on Monday, and project management on Wednesdays. This was enough time to get together and discuss more of how we are going to tackle what seemed to be a gigantic project at the start.Storming phaseOur first task as a group was generating an idea for the project, one that is innovative but still practical. Due to the enthusiasm in every member, there were a lot of ideas produced after a while of brain storming. Its how best one could back up their idea and convince the rest. Each idea was challenged and one by one filtered until we reached to the final idea which we all agreed upon. At times we would lose focus on the project scope due to the wide contribution of materials from each member, but finally we would find our way back into the requirements of this project. The final idea wasnt all based on one mans opinion but consisted of contributions from all the members. Useful parts or strengths of the filtered ideas were taken into consideration and some added to the final idea to make it a strong one. NormingFinally after a few weeks of brainstorming and research, we decided on an idea which was appealing to every member of the group. The idea wasnt still perfect, and we made slight adjustments here and there as we progressed through the project. So after mutual agreement on the idea, the next task was to breakdown the project and assign parts to different group members. The task assignment was a fair one because it was based on ones knowledge base and ability to produce the best quality on his particular task. Through brain storming and discussions, we were able to establish each members strong points and therefore took advantage of that by assigning members with tasks that they seemed strong at. Not all tasks were familiar to all members but due to flexibility, all the tasks were able to be assigned to a particular member. Each member was placed in charge of two tasks. I was assigned with the market and competitors task. It required a lot of research and analyzing of information, both about the market and current competitors of the product we had chosen in Malaysia. Not being familiar to the local companies in the country was my main challenge. I manage to overcome this challenge through interacting with the local students, asking about a particular product or company to get more inside information and views of the individuals who are familiar with the product and used it before. This strategy was very useful indeed, for I manage to obtain a lot of information that wasnt provided in neither in books nor on the internet. Performing PhaseBy this stage, each group member knew what is expected of them and was more focused on achieving it. There was enough time placed between goal achievements since we had to focus on our investigation report as well which was due two days earlier than this projects deadline. We kept track on the progress of the project to ensure no one falls behind of schedule hence the team work, one for all and all for one. Towards the end of the project, one of the members fell sick and hence was behind schedule, leading to his late submission of his part; this was one of the down parts of the journey. Other than that the rest of the work was brought together and each member had to present his part providing justifications to what he had produced. This was so as to make sure that the final output of the project was on the same page, meaning all the information correlates to one another. We also spared some time in case of any changes or modifications to be made; this was part of our contingency plan. After compilation of the final document, a softcopy of this document was sent to all the members to proof read and provide their insight on what other members have done. Finally agreeing to what was done, the next step and final stage was the printing of the project and attaching it with various requirements and submitting it.So in conclusion, this journey was worth taking, bonds were strengthened, new information learned and new friends made, I look forward to working with such a productive group again in the future coming projects if given the chance.

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BUSINESS PLANGROUP ASSIGNMENT 2012