introduction plan

LITTLE CAKES & CAFE THE ORIGIN OF CUPCAKES

1.0 INTRODUCTION OF THE

ORGANIZATION

COPYRIGHT OF LITTLE CAKES & CAFE


1.1 COMPANY LOGO

LITTLE CAKES & CAFE

LITTLE CAKES & CAFE is the name of our cupcakes shop. Little Cakes is representing

our main product of business that is cupcakes while Cafe is representing other services

that we provided in our business that is food and beverage. The used of cupcakes

picture is to make the logo more interesting, make it not look to messy as well as to

make the people easy to remember Little Cakes & Cafe. The colours that we have

choose as our own personality and image of the business is purple and pink. It is

because we want to create something different than other cupcakes shop and bring a

relaxing and simple ambiance or concept for our cupcakes shop so our customer can

fell that they truly fell the relaxing experience in Little Cakes & Cafe.



THE ORIGIN OF CUPCAKES

We use this tagline to attract the customers’ attention and at the same time as a result

people will get know and keep in their mind about us, our products. In addition, THE

ORIGIN OF CUPCAKES means our customer who bought our cupcakes will feel the

truly and cupcakes which is different from any cupcakes shop. Besides that, the

cupcakes that we provided to customers are originally baked, used of natural material

for the ingredients and the recipe that comes from our own staff.



1.2 NAME OF THE COMPANY

Little Cakes & Cafe

1.3 NATURE OF THE BUSINESS

Provide unique combination of flavours and beautiful decoration of cupcakes at value

pricing with a fun, relaxing, leisure and entertaining atmosphere whereby including other

services such as food and beverage and Wi-Fi for our customer satisfaction.

1.4 INDUSTRY PROFILE

Industry analysis is the outlook for the specific industry where we look at the level of

competition in the industry. As for the food industry, the evaluation of the competitive

position is an essential and a vital element for us. Our competitors consist of various,

well-known, and yet the established cupcake shops that have survived in the industry to

a great extent of economic difficulties such as Bisou Bake Shop, Cupcake Chic, A Taste

Boutique, White Daisy’s Cupcakes, Basic Stories Cupcakes & Cafe and many more.

These are some of the cupcake shops in Kuala Lumpur. Another consideration that we

analyst is the demand in cupcake market was increasing from year to year. This is

because of the trend and lifestyle of the people nowadays. The benefits of being in this

industry include meeting people, adding income, gaining independence and enjoyable

way of life and perhaps restoring a new building. The business can give great

satisfaction as it grows into a valuable investment or market.



1.5 LOCATION OF THE BUSINESS

Little Cakes & Cafe located at Seksyen 7, Shah Alam. Geographically strategic located

nearby Universiti Teknologi Mara, Shah Alam (UiTM, Shah Alam), bank, Kentcuky Fried

Chicken (KFC), petrol station Petronas, Oldtown White Coffee and other shop lot at

Pusat Komersial, Seksyen 7. Besides that, our cupcakes cafe is located in the shop lot

nearby to the I-City.

1.6 DATE OF BUSINESS COMMENCEMENT

08th August 2010

1.7 FACTORS IN SELECTING THE PROPOSED BUSINESS

We choose to open this cupcakes cafe because mainly for business purposes and to

earn profit. Apart from that, the demands of cupcake are being placed in the market as

the trends and lifestyles of the people nowadays. Therefore, we would like to take this

great opportunity to involve in this business. Finally, we want to implement all the

knowledge and skills gained from our studies.



1.8 FUTURE PROSPECTS OF THE BUSINESS

We are striving to satisfy our customer with great and friendly services thus generate

profit. Little Cakes & Cafe will try to enter or list of the well-known, and yet the

established cupcake shops that have survived in the industry. Besides that, we are

looking forward to compete with our competitors in Seksyen 7, Shah Alam such as

White Daisy’s Cupcakes, Diya’s Cupacakes, Cuppy Cuppy and Basic Stories Cupcakes

& Cafe by open other other cupcake businesses which are include food and beverage

services in other places like Petaling Jaya, Subang Jaya and Kelana Jaya and the same

time become the top rated cupcakes shop every year.



2.0 PURPOSE



This business plan is prepared by Little Cakes & Cafe as a guideline for managing the

proposed business. Besides that, this business plan prepared to evaluate the project

viability and growth potential and to allocate business resources effectively. Other than

that, it prepared by Little Cakes & Cafe for the purpose of obtaining working capital from

Maybank Berhad for the amount RM 562 000.00.



3.0 COMPANY BACKGROUND



NAME OF THE BUSINESS : Little Cakes & Cafe

BUSINESS ADDRESS : No. 3, Jln Plumbum S7/7, Seksyen 7,

40000 Shah Alam, Selangor

WEBSITE : [email protected]

EMAIL : info@littlecakes&cafe.com.my

TELEPHONE NUMBER : 03-5557223

FORM OF BUSINESS : Private Limited Company

MAIN ACTIVITIES : Food and Beverage

DATE OF REGISTRATION : 07th July 2010

DATE OF COMMENCEMENT : 08th August 2010

INITIAL CAPITAL : RM 66 000.00

NAME OF THE BANK : Maybank Berhad

BANK ACCOUNT NUMBER : 88-082656597-1



4.0 BACKGROUND OF OWNER

AND PARTNERS



GENERAL MANAGER

Name : Siti Safiah bt Azaan

I/C No. : 820508-56-5458

Permanent Address : No. 30 Jln SM 9, Sunway Batu Caves,

68100 Selangor.

Correspondence : No. 23, Taman Bunga Raya, Seksyen 2,

Address 40450 Shah Alam, Selangor Darul Ehsan

Phone No. : 012-6474247

Date of Birth : 8th May 1982

Age : 28 years

Marital Status : Single

Academic Qualification : 1) Diploma in Accounting

2) Bachelor Degree in Business

Administration

Courses Attended : Business, Entrepreneurship Course

Skills : 1) Event Management

2) Speak fluently in both English and Malay

3) Microsoft office

4) Customer service

Experiences : 4 years working experience in Corporate

Sector

Previous Business : General Executive at MapletreeLog (M)

Holdings Sdn. Bhd (6 years)

Experience

Present Occupation : General Manager at Little Cakes & Cafe



ADMINISTRATION MANAGER

Name : Maheran bt Nadzri

I/C No. : 840316-08-6240

Permanent Address : No. 109 Bt 18, Ladang Kuala Bernam,

36000 Teluk Intan, Perak

Correspondence : No. 28, Tmn Bunga Kekwa, Seksyen 2,

Address 40450 Shah Alam, Selangor

Phone No. : 019-4796492

Date of Birth : 16th March 1984

Age : 26 years


Academic Qualification : 1) Diploma in Office management

2) Bachelor Degree in Human Resource

Management

Courses Attended : Secretarial Course, Entrepreneurship

Course

Skills : 1) Public Relations

2) Microsoft Office

3) Speak fluently in both English and Malay

Experiences : 2 years experience working in retail

business as Human Resource Manager

Previous Business : Human Resource Executive at De Palma Inn

Experience (5 years)

Present Occupation : Administration Manager at Little Cakes &

Cafe



OPERATION MANAGER

Name : Josphine Anak Lubong

I/C No. : 820616-13-5876

Permanent Address : No. 34, Tmn Reveria, 94399 Kota

Samarahan, Sarawak

Correspondence : No. 23, Tmn Manggis, Seksyen 2, 40450

Address Shah Alam, Selangor

Phone No. : 013-2041548

Date of Birth : 16th June 1982

Age : 28 years


Academic Qualification : 1) Diploma in Culinary Arts

2) Bachelor Degree in Food Service

Courses Attended : Food Service Course, Entrepreneurship

Course

Skills : 1) Kitchen

2) Good at giving clear instructions to

employees

3) Speak fluently in both English,Malay and

Iban

Experiences : 2 years experience working at Corporate

Sector as Operation Executive

Previous Business : Operation Executive at Famous Amos

Experience Junior (4 years)

Present Occupation : Operation Manager at Little Cakes & Cafe



MARKETING MANAGER

Name : Nurain Fatiha bt Teh Saharun

I/C No. : 820424-06-5814

Permanent Address : No. 8 Lrg 1C, Jln Sri Sementa, Taman

Sementa, 40000 Shah Alam, Selangor

Correspondence : No. 28, Tmn Bunga Kekwa, Seksyen 2,

Address 40450 Shah Alam, Selangor

Phone No. : 014-2110381

Date of Birth : 24th April 1982

Age : 28 years


Academic Qualification : 1) Diploma in Business Studies

2) Bachelor Degree in Business Studies

Courses Attended : Business Course, Entrepreneurship Course

Skills : 1) Event Management

2) Marketing & Advertising

3) Microsoft Office

4) Public Relations

Experiences : 2 years working experience in retail

business as Marketing Executive

Previous Business : Marketing Executive at Empire Automation

Experience Sdn. Bhd.

Present Occupation : Marketing Manager at Little Cakes & Cafe



FINANCIAL MANAEGER

Name : Ezanee bin Zulkifli

I/C No. : 801032-03-5131

Permanent Address : No. 78 Taman Permai, 16040 Kota Bharu,

Kelantan

Correspondence : P1-17A Tingkat 1, Jalan Plumbum, U7/U

Address Pusat Komersial Seksyen 7, 40000 Shah

Alam, Selangor

Phone No. : 013-2965555

Date of Birth : 23rd October 1980

Age : 30 years


Academic Qualification : 1) Diploma in Accountancy

2) Bachelor Degree in Finance

Courses Attended : Cultural Studies Course, Entrepreneurship

Course

Skills : 1) MYOB Software

2) Financial Accounting

3) Microsoft Office

4) Public Relations

Experiences : 4years working experience in business as

Financial Executive

Previous Business : Financial Executive at Illustrated Magazine

Experience Publishing Sdn. Bhd.

Present Occupation : Financial Manager at Little Cakes & Cafe



5.0 ADMINISTRATION PLAN



5.1 INTRODUCTION TO THE ORGANIZATION

VISION

To be a highly regarded and reputable cupcakes shop in Klang Valley to serve

the needs and wants of the customers from other places.

To expand our business by opening 2 new branches within 5 or 7 years.

To provide a good quality of cupcakes.

MISSION

To introduce our product into the competitive market and to be accepted by

customers.

To continue introducing new designs and variety of flavours in our product, that

is cupcakes.

To reach our targeted sales for the first year.

OBJECTIVES

To establish and operate cupcakes cafe for the people who are living at Klang

Valley.

To provide with the friendliest services with affordable prices of cupcakes and

other services.



BUSINESS ADDRESS : Little Cakes & Cafe,

No.3, Jln Plumbum S7/7, Seksyen 7, 40000

Shah Alam, Selangor Darul Ehsan

LOCATION PLAN :

TYPE OF BUILDING : Shop-Office

INFRASTRUCRURE

LAND AREA : 22 × 7

BUILT-UP : 1320 sq.ft


PETRONAS SHELL CALTEX

LITTLE CAKE & CAFE

UiTM BHP PETROL

RESIDENT AREA

WE ARE HERE!


5.2 ORGANIZATIONAL CHART


GENERAL MANAGER

SITI SAFIAH BT AZAAN

FINANCIAL

MANAGER

EZANEE BIN ZULKIFLI

OPERATION

MANAGER

JOSPHINE ANAK LUBONG

ADMINISTRATION

MANAGER

MAHERAN BT NADZRI

MARKETING

MANAGER

NURAIN FATIHA BT TEH SAHARUN


5.3 LIST OF ADMINISTRATION PERSONNEL

Position No. of Personnel

General Manager 1

Administration Manager 1

Operation Manager 1

Marketing Manager 1

Financial Manager 1



5.4 SCHEDULE OF TASKS AND RESPONSIBILITIES

Position Tasks and Responsibilities

General Manager Complete management responsibilities in

ensuring the company objective and mission can be

achieved according to plan.

Supports motivation of employees in

organization products or programs and operations.

Looks to the future for change opportunities.

Oversees the overall operations of organization.

Analyze monthly report of every department.

Administration Manager Update and maintain database with accurate

client information.

Controlling the financial expenses for

administration department.

Identify and inform the duties every department.

Management of staff’s salary payment, bonuses

and incentive, EPF and SOCSO.

Operation Manager Manage the quality of products and ensure

problems are handled efficiently.

To set a rules and procedures for staff to follow

in order for department run smoothly.

Manage and determine the operation cost

adequate with the company budget.

Marketing Manager To set a strategic marketing plan for the

company and identify new marketing opportunities.

Promoting the products and services of the



business to the customers.

Analyze SWOT (Strength, Weakness,

Opportunity and Threat) of the company and

strengths and weaknesses of our competitors.

Prepared the department report and submit to

the top manager.

Financial Manager Manage and control the overall budget,

expenses and profits of the company.

Prepare monthly and annual cash flow and

income statement.

Researching and reporting on factors influencing

the business performance

Managing a company's financial accounting,

monitoring and reporting systems.



5.5 LABOUR INCENTIVES

EMPLOYEES TRAINING

The employees of the organization, particularly the operational staffs, are trained in on-

the-job training to gain and improve their skills in the matters baking cupcakes, customer

service and the work-flow systems. Other than that, a more experience workers can be

the leader.

SALARY REVIEW

Salary review will be made once a year for the services of the confirmed staff. The basic

salaries will be paid once a month on the 28th every month. It is the basic salaries that

are paid in cash payable for the work done. Any increase in the salary shall depend on

the decision of the top management.

ANNUAL LEAVES

No. Position Days of annual leaves

1. General Manager 20

2. Administration Manager 20

3. Operational Manager 20

4. Marketing Manager 20

5. Financial Manager 20



Application of the leaves must be made a week before the commencement date of leave

requested. The authority to approve annual leaves applications are given to the General

Manager of Little Cakes & Cafe.

SICK LEAVE

The staffs are allowed to take a sick leave if they get sick or injuries occurred. Sick leave

can be taken if there are medical certificate from any doctors in private or government

medical institutions.

BONUSES

The top management will give bonuses to all employees if the targeted profits are

achieved in the particular year. The bonuses will be given according to amount of

contribution from the top management according to the profit of the year.

EMPLOYEE PROVIDENT FUND (EPF)

In planning the salaries of the employees and the manager, the Employee Provident

Fund (EFPF) and Social Security Organization (SOCSO) are provided. The Employee

Provident Fund (EPF) is a scheme that provides retirement benefits for members

through the management of their savings in an efficient and reliable manner. These

savings are accrued for each employee through contributions from employees and their

employers in their monthly wages. The amount accrued for EPF is 13% of the monthly

salary.



SOCIAL SECURUTY ORGANIZATION (SOCSO)

The Social Security Organization (SOCSO) operates as a social insurance scheme

provided by the Government of Malaysia to provide aid in financial guarantees and

protection to employees and their families in the event of accidents resulting in

disablement, death or affliction with occupational diseases. SOCSO amount to be

accrued is 2% from the monthly salary.



5.6 SCHEDULE OF REMUNERATION

Position No. Monthly Salary

(RM)

EPF (13%)

(RM)

SOCSO

(2%) (RM)

Total

(RM)

General

Manager

1 2 600.00 338.00 52.00 2 990.00

Administration

Manager

1 2 100.00 273.00 42.00 2 415.00

Operation

Manager

1 2 200.00 286.00 44.00 2 530.00

Marketing

Manager

1 2 000.00 260.00 40.00 2 300.00

Financial

Manager

1 2 300.00 299.00 46.00 2 645.00

TOTAL 12 880.00

5.7 OFFICE EQUIPMENTS



Item Quantity Price/Unit (RM) Total (RM)

Computer 5 1 300.00 6 500.00

Air Conditioner 3 999.00 2 997.00

Multi Function

Printer/Fax

1 500.00 500.00

Telephone 3 200.00 600.00

Photocopy machine 1 10 000.00 10 000.00

A4 Paper 4 10.00 40.00

Receipt Book 10 2.00 20.00

File Holder 6 3.50 21.00

Total 20 678.00

5.8 FURNITURE AND FITTINGS




File Cabinet 5 200.00 1 000.00

Notice Board 1 20.00 20.00

Table 5 300.00 1 500.00

Chair 7 90.00 630.00

Total 3 150.00

5.9 RENOVATION


Flooring - - 3 000.00

Lighting - - 700.00

Total 3 700.00

5.10 REGISTRATION EXPENSES

Item Amount (RM)



Business License & Registration 3 000.00

Telephone 410.00

Internet Connection Installation 173.00

Total 3 583.00

5.11 ADMINISTRATION BUDGET

Type Fixed Asset Monthly Other Expenses



(RM) Expenses (RM) (RM)

Office Equipment

Furniture and Fittings

Renovation

20 678.00

3 150.00

3 700.00

Salaries

Rental

12 880.00

3 000.00

Fire Extinguisher 300.00



6.0 MARKETING PLAN

INTRODUCTION



Marketing plan is one of the main aspects that are very important in order to expand

market and introduce our product and make sure there is an improvement in the

business. Furthermore, the marketing plan also helps the business to expand all the

information regarding the potential customer, marketing strategy and marketing analysis.

It will give impacts to the business plan within the business then contribute to a good

company profitability and image.

Marketing plan is a part of the business which can help us to promote the business to the

customer. Besides that, through the marketing plan there are giving more choices to the

customer besides introducing a new concept in attracting the customers and promote our

product market. Other than administration and operational, the marketing also has a

direct contact with the customer in order to fulfill their needs. To gain higher profits,

marketing should be able to predict the customer’s desire and try to get the customer

attention to try our product. As a preparation to provide an effective marketing plan we

have to come out with the marketing analysis, target market and marketing strategy.

Marketing is and exchange activity that takes place between a business entity and its

customers. The customers can be anyone from individuals, other business entities (e.g.

wholesalers, retailers or dealers) to support organization (e.g. banks, government

agencies or non-government organization). This is achieved by deciding on the best way

to advertise a products or services or what price to charge for it.

MARKET DEFINITION



Marketing can be defined as the activities that are carried out systematically to encourage

and increase sales of products or services as long as the activities are in line with

religious and ethical practices. Basically, the marketing activities will help the

entrepreneur to sell and promote their products to customer. Marketing definition also can

be referring to several basic elements. Here, the marketing activities must be planned

and implemented in systematic manner in order to achieve the business goals. If not, it

can give the result of wasted unnecessarily and effecting the business performance and

profit. The resources such as time, money and man-power should be managed properly.

The systematic marketing effort will ensure that the customers well attracted and

motivated to use the business products or services that are being offered. Thus, it is

important to encourage purchaser by the first-time in order to promote the product and

also encourage them to come again. The first experience will give the positive perception

about the level of the services of the business. These previous two factor must be based

on awareness of religious boundaries and ethical practices. Marketing should ensure that

marketing activities are not contra with the religious consideration of the target market

and the population generally.

6.1 PRODUCT OR SERVICE DESCRIPTION



The Little Cake offers a variety of cupcakes size and flavours. All cupcakes are beautifully

decorated and freshly baked as the needs and wants of the customer. The Little Cake

produces a cupcakes using only the freshest and most natural ingredients and free from

trans-fat and preservatives. Besides that, 60% of our business is come from a special

order of the needs and wants of the customer while the other 40% of our business is filled

by special cravings by our own staff. To fulfil the needs and wants of the target customer,

our company will always come out with a new decoration and design of cupcakes.

6.2 TARGET MARKET



Target market can be define as the groups of customers that have needs and want that

can be satisfied by the business through the supply of goods and services. Businesses

need to focus their marketing activities towards certain groups of customers. These

customers are choosing based on the business ability to satisfy needs and wants of the

group. These selected customers are known as target market.

To ensure Little Cake is achieving its objective, first among all we must select our target.

Our target group of customers that have a needs and wants can be satisfied by the

business through the produce a cupcakes. The market that we are targeting ranged

mainly for those who are love cupcakes regardless teenagers and kids, working mothers,

residents of urban areas, students and people who are getting married. According to the

research that we have done, a target market must be identified to accomplish the

customers of their requirements in addiction to bring profit through the product we give to

them.

Target market is a place where we want to market our product or give services to

customers. First of all, our company has to decide where the best place to market out

product which most strategic whereby all of the customer can see our business. Finally,

we come out with the decision to open our business in Seksyen 7, Shah Alam area. This

is the strategic place for us to selling our product because based on our view and

analyzed this place is in developing place.

Our customers can be broadly divided into three groups :



1. Weekend getaway customers.

These people are like to hang out and spend time outside home during weekend

such as parents will bring their children go to our cupcakes cafe and enjoy with our

cupcakes and meals that we provided with a relaxing and simple ambience.

2. Students.

These people are studying in the Universiti Teknologi Mara, Shah Alam (UiTM),

Pusat Teknologi & Pengurusan Lanjutan (PTPTL) and Management & Science

University (MSU).

3. Residents of urban area.

These people are living in the urban areas, nearby to our shop and prefer to live a

hassle-free lifestyle. They rather buy something than having themselves made it on

their own.

6.3 MARKET SIZE



Market size refers to the total potential purchase of the target market which includes

purchase of competitor products within the same market. It is normally stated in term of

unit or “Ringgit Malaysia (RM)” and it can be calculated daily, weekly, monthly and yearly.

When we are alert the current and expected market potential, it will helps us to have

better plan businesses, marketing and sales activities.

From the sources of statistic department, the populations people in Shah Alam are

around 580,000 peoples include the people who are studying in University in Shah Alam.

Therefore, our target people that will buy cupcakes are 350,000 peoples.

Below are steps that show how we determine our market size.

Step 1

We assume that people will go to cupcakes shop.

7% X 350 000 people = 24 500 people

Step 2

We assume that amount of money that people willing to spend for cupcakes for a

month.

24 500 people x RM 24 = RM 588 000

Step 3

We assume that amount of money that each people willing to spend at our cupcakes.

24 500 people X RM 12 = RM 294 000

6.4 COMPETITORS



Little Cake competitors are the business firms that provide similar product to the same

target. Our main competitors also focus on the same customers as their target market.

From our survey, we identified that there are four competitors cupcakes shop around

Shah Alam which is provide exactly same product.

Name of the company Strength Weakness

White Daisy’s Cupcakes Has been well

known by the customer

Has operates the

business for more than 4

years

Have more

experience

Lack of staff

Lack of

equipments

Diya’s Cupacakes Well-known by most

of the customer

Location business in

the middle of resident

Homemade

cupcakes

Lack of staff

Cuppy Cuppy Affordable price

Good promotion

Hidden location

Basic Stories Cupcakes &

Cafe

Friendly service

Newly establish with

Small premises

Unattractive



new furniture

CCTV

environment

Narrow building

Little Cakes & Cafe Product quality

Beautiful design and

used natural material for

the ingredients of

cupcakes

Hired qualified and

skill staff

New equipments

and technologies

New in the market

6.5 MARKET SHARE

Present scenario (without Little Cake)

Name of the company Monthly Sales (RM) Market Share (%)



White Daisy’s Cupcakes 235 200.00 40

Diya’s Cupacakes 176 400.00 30

Cuppy Cuppy 88 200.00 15


Cafe

88 200.00 15

Total 588 000.00 100%

PERCENTAGE BEFORE ENTERING THE MARKET



With the present of Little Cake in the market

Name of the company Monthly Sales (RM) Market Share (%)

White Daisy’s Cupcakes 229 320.00 39



Diya’s Cupacakes 164 640.00 28

Cuppy Cuppy 82 320.00 14


Cafe

64 680.00 11

Little Cake 47 040.00 8

Total 588 000.00 100%

PERCENTAGE AFTER ENTERING THE MARKET



6.6 SALES FORECASTS

Month Sales

Unit RM



Month 1 12 000 144 000.00

Month 2 12 900 154 800.00

Month 3 15 000 180 000.00

Month 4 16 500 198 000.00

Month 5 14 000 168 000.00

Month 6 11 035 132 420.00

Month 7 151 000 181 200.00

Month 8 11 000 132 000.00

Month 9 16 500 198 000.00

Month 10 18 020 216 240.00

Month 11 18 800 225 600.00

Month 12 19 200 230 400.00

Year 1 180 055 2 160 660.00

Year 2 (3%) 185 457 2 225 480.00

Year 3 (5%) 189 058 2 268 693.00

6.6 MARKETING STARTEGY

Even though our company is still new in the market, it is important for us to use

certain strategies that might attract our customers to buy our product. In order to



make sure that everything runs smoothly, we have decided 4 strategies that is

efficient and effective to attract our new customers.

Product Strategies

In outlining with the product strategy, we will give full attention with the

ingredients that we used to produce cupcakes. Basically, we will used from

natural materials such as original chocolate powder and original fruits.

Besides that, we will come-out and ensure our cupcakes with free from trans-

fat or preservations. To make that our cupcakes are always looking fresh, we

will made based to order basic.

Price Strategies

Usually, we have to complete with our competitor in term of pricing. As our

company just to grow, we need to attract more customers to come our

cupcakes shop and buy our cupcakes as our main product of business. This

is one of the strategies to attract them and make them a loyal customer for a

long period of time. In order to realize our dreams, our company, Little Cakes

& Cafe has offered our customer with variety types of size of cupcakes with

different price.

1) Cost-based pricing

We are choosing cost-based pricing as our pricing strategy. This is because

cost-based strategy is the simplest and most commonly used pricing strategy.



We count it based on the total cost of the cupcakes plus a standard mark-up.

The mark-up is the profit margin that is desired from the sales of the

cupcakes. The cost – based pricing is shown below :

Price = Total Cost Per Unit + Mark-up

Example of the calculated price such as :

Price = cost per unit + mark-up

= RM 3.00 + (17 % x RM 3.00)

= RM 3.00 + RM 0.51

= RM 3.50

2) Value – based pricing

We are also choosing value – based pricing as our pricing strategy. In value-

based pricing, the customer’s perception of the value of a product is a key

factors considered in pricing the cupcakes. This is because, our cupcakes is

presented in three sizes, small, medium and large. This perceived value is

associated with the benefits that our customers believe are received from our

product.

Place Strategies

We are choosing the most common form of distribution channels as shown

below :



Manufacture Consumer

This type of channel is called the direct marketing channel or channel one.

We are choosing this channel because it is suitable for our business and

directly connected to our customers.

Our shop also stated at strategy area which is near workers and

neighbourhood’s area, at walking area, have wide space for parking and also

it is stated at away to I-City which is the new leisure area at Shah Alam. So

that more people will attract to go to our shop before they go to I-City.

Promotion Strategies

1) Advertising

Advertising are non-personal, paid form of promotion through the mass

media. The most advertising strategy that we used is by creating brochures,

advertised at magazine and also with the World Wide Web.

2) Sales Promotion

Sales promotion is short-term incentives or the special offer to encourage

purchase or speed up the purchase decision. We are doing our sales

promotion by offer a student price, make a package for seasonal or occasion

event, member’s card and also a stamp for the customers. It will result that

many customers will come to our cupcakes cafe.

6.7 LIST OF MARKETING PERSONNEL




Marketing Manager 1

Sales Personnel 1

6.8 SCHEDULE OF TASK AND REPONSIBILITIES

Position Task and Responsibilities

Marketing Manager To set a strategic marketing plan for

the company and identify new

marketing opportunities.

Analyze SWOT (Strength,

Weakness, Opportunity and Threat) of

the company and strengths and

weaknesses of our competitors.

Sales Personnel Promoting the products and

services of the business to the

customers.

Prepared the department’s report

and submit to the top manager.


Position No. Monthly Salary EPF (13%) SOCSO Total



(RM) (RM) (2%) (RM) (RM)

Marketing

Manager

1 2 000.00 260.00 40.00 2 300.00

Sales

Personnel

1 1 500.00 195.00 30.00 1 725.00

Total 4 025.00

6.10 MARKETING BUDGET

Type Fixed Asset

(RM)

Monthly

Expenses (RM)

Other Expenses

(RM)



Signboard 3500.00

Salaries 4 025.00

Grand Opening 3000.00



7.0 OPERATIONS PLAN

INTRODUCTION

A business will never be operated without an operational plan. No matter what products

or services of the business, there must be an operational plan.



Operational plan can be defined as the process of assemble resources to produce output

through the transformation process. The operation process comprises three main

components such as business input, transformation system and output.

Business input consists of all resources required to produce desire output such as raw

materials, machine and equipment, technology, information and capital. The

transformation system refers to the activities involved in transforming input into output.

This system involves planning of raw materials, designing of operational process,

planning of floor layout and distributing of man power in the organization.

OPERATION OBJECTIVE



The operation management need to be planned very properly as it is the main component

in any business proposal. Our business also had identified some of the objective of our

operation plan. Our operation objectives are:

To optimized our customer’s satisfaction

To accomplish consistency in the services offered

To resolve any of operation problem and make all the operation process run

efficiently

To ensure that all of the operation process in our business is functioning well to meet

the demand of our customers

7.1 ACTIVITY CHART



FLOW CHART FOR MANUFACTURING CUPCAKES

7.2 PROCESS FLOW CHART



PROCESS FLOW CHART FOR MANUFACTURING CUPCAKES

7.3 CAPACITY PLANNING



Capacity planning refers to the amount of output that can be produced within a specified

time. For daily production, we are required to produce 500 units of cupcakes. To produce

500 units of cupcakes it takes 5 hours.

= 100 units of cupcakes per hour

We estimate that one worker can produced 50 units of cupcakes in 1 hour

= 2 workers

Therefore, we need 2 worker to produced 50 units of cupcakes in 1 hour.

Little Cakes & Cafe was open on Monday until Sunday and will be closed during public

holiday. Our business will start the operation on 9.00 am until 11.00 pm because we want

to take much reservation and attract more customers comes to our cupcakes cafe.



7.4 MATERIAL REQUIREMENT

Item

Amount

Required

for 100

cupcakes

Amount

required/

cupcakes

Amount

required/

Month

Price/Unit

(RM)

Total

Purchase

(Month)

(RM)

Flour 4 kg 40 g

40g/unit x

13 440 =

537.6kg

1.50 806.40

Egg 5 units

0.05 units

(1 egg for

every 20

cupcakes)

1/unit x 672 =

672 units0.25 168.00

Butter 2 kg 20 g

20g/unit x

13 440 =

268.8kg

1.50 403.20

Sugar 2 kg 20 g

20g/unit x

13 440 =

268.8kg

2.30 618.30

Icing 2 kg 20g

20g/unit x

13 440 =

268.8kg

2.00 537.60

Total 2 533.50



7.5 LIST OF OPERATION PERSONNEL


Operation Manager 1

Supervisor 1

Baker 1

Assistant Baker 1

Worker 2

Cashier 1



7.6 SCHEDULE OF TASKS AND RESPONSIBILITIES

Position Task and Responsibilities

Operation Manager Manage the quality of products and ensure

problems are handled efficiently

To set a rules and procedures for staff to follow in

order for department run smoothly

Manage and determine the operation cost

adequate with the company budget

Supervisor Developing and introducing new training plan to

the group

Make sure that member of team follow

organization’s rules and policies

Setting performance standards for task project

and roles of employees of the group

Baker Prepared cupcakes for sale

Create new recipe and design

Ordering of necessary baking supplies

Assistant Baker Closely follow daily list and see attached

Responsible for cleaning bakery equipment by

closely following daily and weekly cleaning list

Responsible for organizing product in preparation

for baker

Worker 1 Welcomed the customer who entered to the shop



Ensure the cleanliness of toilets and customer

table inside the shop

Take order and serves drink and food to

customers

Worker 2 Prepared for drinks and food for the customer

To count all the food and beverage stock

Ensure the cleanliness of the food and beverage

area

Cashier Receive the money from customer

Close the account everyday

This is our operation process schedule for all of staff that involved in daily roster.

Staff MON TUE WED THU FRI SAT SUN

Operation Manager O O O O O X X

Supervisor O O O O O O O

Baker O O O O O O O

Assistant Baker O O O O O O O

Worker 1 O O O O O O O

Worker 2 O O O O O O O

Cashier O O O O O O O

O = Worker day (Open Business)

X = Worker leave




Position No. Monthly Salary

(RM)

EPF (13%)

(RM)

SOCSO

(2%) (RM)

Total

(RM)

Operation

Manager

1 2 200.00 286.00 44.00 2 530.00

Supervisor 1 1 500.00 195.00 30.00 1 725.00

Baker 1 1 400.00 182.00 28.00 1 610.00

Assistant

Baker

1 1 000.00 130.00 20.00 1 150.00

Worker 2 700.00 91.00 14.00 1 610.00

Cashier 1 800.00 104.00 16.00 920.00

Total 9 545.00

7.8 OPERATIONAL EQUIPMENT



Item Price/Unit (RM) Quantity Total Cost (RM)

Baking oven 5 500.00 2 units 11 000.00

Cream Cooker 1 500.00 2 units 3 000.00

Spiral Mixer 3 300.00 2 units 6 600.00

Cupcake Pan/Tray 59.90 20 units 1 198.00

Cupcake

Stand/Tree

46.00 5 units 230.00

Refrigerator 4590.00 2 units 9 180.00

Cupcakes

Refrigerator

(curve glass display)

2 390.00 1 units 2 390.00

Spatula 2.50 2 dozen 5.00

Cup Measure 4.00 5 units 20.00

Bowls 5.00 20 units 100.00

Icing Bag 10.00 3 packet 30.00

Cupcakes Boxes 3.00 1000 boxes 3 000.00

Total 36 753.00

7.9 FOOD AND BEVERAGES




Soft Drink 34.00 5 dozen 170.00

Mineral Water 20.00 5 dozen 100.00

Straw 2.00 6 pack 12.00

Coffee Maker 150.00 1 unit 150.00

Buns 1.50 200 unit 300.00

Fork & Spoon 40.00 5 dozen 200.00

Table Set 550.00 5 set 2 750.00

Total 3 682.00

7.10 OTHER EQUIPMENTS




Cash Machine 350.00 1 350.00

Air Conditioner 1 000.00 2 2 000.00

Total 2 350.00

7.11 SUPPLIERS INFORMATION



Item Supplier

Food and Beverages

Raw Materials

International Centre of Cake Artisty Sdn.

Bhd.

Sunway Damansara wisma ICCA,

1, Jalan PJU 5/15,

Dataran Sunway, Kota Damansara,

47810 Petaling Jaya,Selangor.

Tel : 03-61408835

Fax: 03-61421501

Kitchen Equipment 1B Com Kitchen Expert Sdn. Bhd.

17, Jalan 5/36, Bukit Sri Bintang,

Kepong 52100 Wilayah Persekutuan,Kuala

Lumpur.

7.12 SPACE LAYOUT



SYMBOLS USED IN LAYOUT



SYMBOLS DESCRIPTIONS

Table Set

Food and Beverage

Cupcakes Display

Kitchen Area

Cashier

Washroom & Toilet

7.11 LOCATION



Little Cakes & Cafe located at No.3, Jln Plumbum S7/7, Seksyen 7, 40000 Shah Alam,

Selangor Darul Ehsan.

7.12 OPERATION OVERHEAD



Item Cost (RM)

Salary 9 545.00

Rent 3 800.00

Water 500.00

Electricity 2 500.00

Telephone & WI-FI 200.00

Total 16 545.00



7.13 OPERATION BUDGET

Type Fixed Asset Cost

(RM)

Monthly Expenses

(RM)

Other Expenses

(RM)

Machine & Equipment

Operation Equipment

Renovation

32 170.00

4 583.00

2 500.00

Raw Materials

Salary

Rent

Water

Electricity

Telephone & WI-FI

2 533.50

9 545.00

3 800.00

500.00

2 500.00

200.00

Maintenance

Other Equipments

2 000.00

2 350.00



8.0 FINANCIAL PLAN

INTRODUCTION



Financial planning is the most crucial aspect of this business plan as financial plan

incorporates all financial data derived from the operating budgets gathered from the

administration, marketing and operations department. Thus, financial planning can only

start when all the information and data have been gathered from others mentioned

department above. Business account will be much more systematic and prudent with

effective financial management planning. Thus, it is very important to have a good

financial planning. The purpose of financial plan are :

To determine the size of investment

To identify and propose the relevant sources of finance

To ensure that the initial capital is sufficient

To appraise the viability of the project before actual investment is

committed

To be used as a guideline for implementation process

8.1 PROJECT IMPLEMENTATION COST SCHEDULE



ADMINISTRATIVE EXPENDITUREFixed Assets RM

Furniture and fittings 3,150

Renovation 3,700

Office equipment 20,678

Working Capital

Salaries,EPF & SOCSO 12,880

Utilities 400

Stationary 300

Pra-Operasi

Deposit (rent, utilities, etc.) 3,000

Business Registration & Licences 3,000

TOTAL 47,108

MARKETING EXPENDITURE

Fixed Assets RM

Signboard 3,500

Working Capital

Salary, EPF & SOCSO 1,725

Utilities 400

Advertisement 7,500

Pra-Operasi Deposit (rent, utilities, etc.) Business Registration & Licences Insurance & Road Tax for Motor Vehicle

Other Expenditure 3,000

TOTAL 16,125



OPERATIONS EXPENDITURE

Fixed Assets RM

Machine and Equipment 32,170

Operation Equipment 4,583

Renovation 2,500

Working Capital

Raw Materials & Packaging 5,533

Salaries, EPF & SOCSO 7,015

Utilities 3,200

Maintenance 2,000

Pra-Operasi

Deposit (rent, utilities, etc.) 3,800

Other Expenditure 2,350

TOTAL 63,151

8.2 SOURCE OF FINANCE SCHEDULE



LITTLE CAKES & CAFE

PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost Sources of Finance

Requirements Cost LoanHire-

PurchaseOwn Contribution

Fixed Assets Cash Existing F.

Assets

Land & Building

Furniture and fittings 3,150 1,150 2,000

Renovation 3,700 2,700 1,000

Office equipment 20,678 20,678

Signboard 3,500 3,500

Machine and Equipment 32,170 32,170

Operation Equipment 4,583 4,583

Renovation 2,500 2,500

Working Capital 12 months

Administrative 162,960 162,960

Marketing 115,500 115,500

Operations 212,976 212,976

Pre-Operations & Other Expenditure 15,150 15,150

Contingencies 7% 40,381 40,381

TOTAL 617,248 550,817 45,753 20,678

8.3 LOAN AMORTIZATION (REPAYMENT) SCHEDULE



Amount 550,817 Interest Rate 5% Duration (yrs) 7 Method Baki Tahunan

Year Principal InterestTotal

PaymentPrincipal Balance

- - 550,

817

1

78,

688

27,

541 106,229

472,

129

2

78,

688

23,

606 102,295

393,

440

3

78,

688

19,

672 98,360

314,

752

4

78,

688

15,

738 94,426

236,

064

5

78,

688

11,

803 90,491

157,

376

6

78,

688

7,

869 86,557

78,

688

7

78,

688

3,

934 82,623

-

8 0 0 -

-

9 0 0 -

-

10 0 0 -

8.4 FIXED ASSET DEPRECIATION SCHEDULE



Fixed Asset Furniture and fittingsCost (RM) 3,150Method StraightLineEconomic Life (yrs) 5

Annual Accumulated

Year Depreciation Depreciation Book Value

- - 3,150

1 630 630 2,520

2 630 1,260 1,890

3 630 1,890 1,260

4 630 2,520 630

5 630 3,150 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -



Fixed Asset RenovationCost (RM) 2,500 Method StraightLine Economic Life (yrs) 5

Annual Accumulated


- - 2,500

1 500 500 2,000

2 500 1,000 1,500

3 500 1,500 1,000

4 500 2,000 500

5 500 2,500 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -



Fixed Asset Office equipmentCost (RM) 20,678 Method StraightLine Economic Life (yrs) 5

Annual Accumulated


- - 20,678

1 4,136 4,136 16,542

2 4,136 8,271 12,407

3 4,136 12,407 8,271

4 4,136 16,542 4,136

5 4,136 20,678 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -



Fixed Asset SignboardCost (RM) 3,500Method StraightLineEconomic Life (yrs) 5

Annual Accumulated


- - 3,500

1 700 700 2,800

2 700 1,400 2,100

3 700 2,100 1,400

4 700 2,800 700

5 700 3,500 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -



Fixed Asset Machine and Equipment

Cost (RM) 32,170

Method StraightLineEconomic Life (yrs) 5

Annual Accumulated


- - 32,170

1 6,434 6,434 25,736

2 6,434 12,868 19,302

3 6,434 19,302 12,868

4 6,434 25,736 6,434

5 6,434 32,170 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -



Fixed Asset Operation EquipmentCost (RM) 4,583Method StraightLineEconomic Life (yrs) 5

Annual Accumulated


- - 4,583

1 917 917 3,666

2 917 1,833 2,750

3 917 2,750 1,833

4 917 3,666 917

5 917 4,583 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -



Fixed Asset RenovationCost (RM) 2,500Method StraightLineEconomic Life (yrs) 5

Annual Accumulated


- - 2,500

1 500 500 2,000

2 500 1,000 1,500

3 500 1,500 1,000

4 500 2,000 500

5 500 2,500 -

6 0 0 -

7 0 0 -

8 0 0 -

9 0 0 -

10 0 0 -

8.5 PROFORMA CASHFLOW STATEMENT



8.6 PROFORMA INCOME STATEMENT



LITTLE CAKES & CAFE

PRO-FORMA INCOME STATEMENT

Year 1 Year 2 Year 3

Sales 643,170 675,328 688,191

Less: Cost of Sales

Opening Stock of Finished Goods

19,295 20,260

Production Cost 224,406 235,985 242,097

less: Ending Stock of Finishe Goods

19,295 20,260 20,646

0 0 0

205,111 235,020 241,711

Gross Profit 438,059 440,308 446,480

Less: Enpenditure

Administrative Expenditure 162,960 167,849 172,884

Marketing Expenditure 115,500 118,965 122,534

Other Expenditure

Business Registration & Licences

3,000

Insurance & Road Tax for Motor Vehicle

Other Pre-Operations Expenditure

5,350

Interest on Hire-Purchase

Interest on Loan 27,541 23,606 19,672

Depreciation of Fixed Assets 6,206 6,206 6,206

Total Expenditure 320,556 316,626 321,296

Net Profit Before Tax 117,503 123,682 125,184

Tax 32,901 34,631 35,051

Net Profit After Tax 84,602 89,051 90,132

Accumulated Net Profit 84,602 173,653 263,786



LITTLE CAKES & CAFEPRODUCTION COST PRO-FORMA STATEMENT

Year 1 Year 2 Year 3

Raw Materials

Opening Stock 0 3,683 3,867

Current Year Purchases 73,658 77,341 78,814

Ending Stock 3,683 3,867 3,941

Raw Materials Used 69,975 77,157 78,740

Carriage Inwards

69,975 77,157 78,740

Salaries, EPF & SOCSO 84,180 86,705 89,307

Factory Overhead

Depreciation of Fixed assets (Operations) 7,851 7,851 7,851

Utilities 38,400 39,552 40,739

Maintenance 24,000 24,720 25,462

Total Factory Overhead 70,251 72,123 74,051

Production Cost 224,406 235,985 242,097

8.7 PROFORMA BALANCE SHEET



LITTLE CAKES & CAFEPRO-FORMA BALANCE SHEET

Year 1 Year 2 Year 3 ASSETS Fixed Assets (Book Value) Furniture and fittings 2,520 1,890 1,260

Renovation 2,960 2,220 1,480

Office equipment 16,542 12,407 8,271

Signboard 2,800 2,100 1,400

Machine and Equipment 25,736 19,302 12,868

Operation Equipment 3,666 2,750 1,833

Renovation 2,000 1,500 1,000

56,225 42,169 28,112

Current Assets Stock of Raw Materials 3,683 3,867 3,941 Stock of Finished Goods 19,295 20,260 20,646

Accounts Receivable 6,429 6,191 6,308

Cash Balance 531,738 555,615 580,685

561,145 585,932 611,580

Other Assets Deposit 6,800 6,800 6,800 TOTAL ASSETS 624,169 634,901 646,492

Owners' Equity Capital 66,431 66,431 66,431 Accumulated Profit 84,602 173,653 263,786

151,033 240,084 330,217

Long Term Liabilities Loan Balance 472,129 393,440 314,752

Hire-Purchase Balance

472,129 393,440 314,752

Current Liabilities Accounts Payable 1,008 1,376 1,523

TOTAL EQUITY & LIABILITIES

624,169 634,901 646,492


introduction plan

Documents