Contents Pages1. Executive Summary......5 Introduction....5 The
Company.,...5 The Market.....6 Mission
Statement......................6 Key to Success.......6 Company
Summary...........6 Company Ownership.....................72.
Marketing Plan...82.1 Maketing
Research............................82.1.0 Market
Segmentation...82.1.1 Market Targeting.....................92.2
Market Analysis......................102.2.0 PEST
Analysis.......102.2.1 Porters Five
Forces...................112.2.2 TOWS Matrix122.2.3 Competitor
Analysis...................132.2.4 Marketing mix....143. Human
Resourse Management and Legal...................173.1 Introduction
Human Resource Management173.2 Labor Right....................173.3
Other Matters.....................173.4 Background of The Purposed
Project173.4.1 Physical Location.183.4.2 Price of Renting183.4.3
Distance from The Suppliers183.4.4 Distance from The
Customers..183.4.5 Transportation and Facilities.183.4.6 Basic
Amenties (electrical, water, telephone,
facilities).................. 183.5 Organization Chart/
Structure193.5.1 Defining Job Rules203.6 Selecting, Recruiring and
Planning..203.6.1 Succession Planning..203.7 Legal Contract
Issues...............................213.7.1 Licenses
Issues..213.7.2 Salary213.7.4 Working
Hours..........................................223.7.5.
Overtime.233.7.6 Medical
Allowance...........................................233.7.7
Maternity Benefits..233.7.8
Insurance...........................................243.7.9 Bonus
and Rewars..244. Operational Plan254.1 Legal
Environment......................254.1.1 Operating Laws and
Licenses.254.1.2 Business Law...254.1.3 Business Structure..254.1.4
Business Licenses...264.1.5 Labor Law...264.1.6 The Labor
Ordinance, Sabah and Law Ordinances, Sarawak264.2 Operational
Business Strategies........274.3 Business Operation Hours284.4
Location294.4.1 Population294.4.2 Site Visibility...294.5 Workers
in Operation Activities304.6 Process Flow Chart.......314.7
Production schedule / capacit..334.8 Material requirement ...334.9
Operating per month345. Risk Management Plan....355.1 Financial
Risk........355.2 Legal Risk.......355.3 Environmental Risk......
355.4 Econonical Risk.....355.5 Demographic Risk...365.6 Statutory
Risk..365.7 Strategic Management Risk.365.7.1 Location Risk365.8
Property Risk....375.8.1Personal Property Risk..375.9 Other
Risk..375.9.1 Government Policy Risk.375.9.2 Consumer Behaviour
Risk..375.9.3 Operational Risk.375.10 The safety equipment that
should have at EDM building.38
6.0 FinancialAnalysis416.0.1 RatioAnalysisYear2014..416.0.2
Current ratio of EDM Photograph..426.0.3 Ratio of fixed asset
turnover for EDM Photography437.0 Appendic.....447.1 Forecast
sales...447.2 Income statement 2014....45
1.0 Executive SummaryIntroduction EDM Event and Photography, a
small business company is the company that provide photography
session and organize weeding event and also corporate event. EDM
also make graphic design to the costumer.. The Company EDM Event
and Phothography, a small business company owned by a single person
that called Mr. Muhd Yusri Bin Yusof. This company was build on his
own with all the hardwork and patience, Mr. Yusri also lead his
company to growth and the company name is well known amongs all
photography event and peoples who love photography. Mr.Yusri were
born on 17 October 1984 in Kedah Darul Aman. EDM Event and
photography was operate at at Level 8th, Pavilion, Jalan Bukit
Bintang, 55100 Kuala Lumpur, Malaysia. They choose this location
because it is strategic location that provides all facilities such
as equipment supplier and Centre of Malaysia.
Products and Services EDM Event and Photography provide the
photography service to the costumer who want their service in
weeding event or coporate event in Malaysia. EDM also make graphic
design to the costumer who want it.
The Market EDM Event and Photography provide the service to
couple that want to marriage to make their photo Provide
photography service to corporate organization to make event photo
of the company.
Mission Statement EDM want become one step ahead among the
competitors around Kuala Lumpur and Selangor. There are many
competitors in our business area which are prompted us to produce
high quality of product to fulfil customer satisfaction for the
business growth purposes. Keys to Success Keys to success for EDM
Event and Photography will include:1. Proving the highest quality
photo and service to the costumer.2. Competitive pricing.Company
Summary EDM Event and Photography, a small business company owned
by a single person that called Mr. Muhd Yusri Bin Yusof. This
company was build on his own with all the hard work and patience,
Mr. Yusri also lead his company to growth. The company name is well
known among all photography event and peoples who love photography.
Every wedding event always invite EDM Event and Photography to
participate in their event That the ways of EDM Event and
Photography became well known and was form.
Company Background.
Company Name:EDM Event and Photography.Address:Pavilion KL 168
Level 8 Jalan Bukit Bintang,Kuala Lumpur .Phone No:012 582 6361 /
03 78 3232 92Facebook page:Facebook/pages/edm events &
photography.Website:[email protected]. Service:Photography
Event.Attire:CasualPayment mode:Cash Only.Tag line:just name it .
we make it.2.0 MARKETING PLAN2.1 Market Research2.1.1 Market
Segmentation Market segmentation for EDM Photography is not
specific because this traditional meal suitable for public. Consist
of weeding, engagement, cooperate and printing. Regardless Malay,
Chinese and Indian culture.
The following chart (Figure 1) shows the potential customers
that will buy the EDM PHOTOGRAPHY.
Figure 1
2.1.2 Market Targeting
EDM target market is families of college educated people who are
most likely to be professionals. This is the population most likely
to order professional photos on a regular basis, having both the
means and the desire for professional quality photographs. Since
most of people nowadays are get married in young age, so our
specific target is a young couple in Malaysia who will get married.
Based on the survey results, EDM Photography will be able to
stabilize itself by focusing on this target market.
2.2 Market Analysis2.2.1PEST Analysis Description of product or
services EDM Photography will help client to look their best, will
keep their photos up-to-date, and will capture the special moments
of their lives. EDM arrange an annual portrait of the family and
individual pictures of each member of the family. EDM Photography
has a comprehensive program to preserve memories on an on-going
basis. All of our photos are created in a high-resolution digital
format, from which out prints are made. Higher-quality digital
photos and prints carry full pricing. EDM Event and Photography
will retain the high-resolution data and clients can order more
prints from us if they wish. The physical environment of the studio
is fun and accessible, making families want to come again and
again. EDM Event and Photography also go regularly to peoples home
and bring cameras and lights that are out of the budget of
non-professionals.
28 | Page
2.2.2Porters Five Forces
Barriers to entry (Moderate) A new business can enter easily
because the capital needed is low. Much product variation.
Government policy. EDM Photogrpahy is seen not only as a do a
photography. It also have do printing.
Threat of substitute products (High) The number of substitute
products with EDM Photography is increasing. It allows the
customers to choose their photo pattern by own. Photography can be
found anywhere.
Bargaining power of customers (High) Customers are playing a
main role in order to make the business sustain. Customers have a
power of switching the cost, so if the price is not accepted by
them so they will choose other business.
Bargaining power of suppliers (Low) The main things for EDM
Photography include inks, cover book, cover album and papers. The
suppliers are not concentrated or differentiated. EDM Event and
Photography is depending on certain suppliers. They also will
change their supplier if their supplier is unable to give a good
price.
Intensity of competitive rivalry (High) EDM Photography has
several competitors which also has a wide range of photography
There is other photography in the market that become popular, with
their different angle and light reflection because of their level
of photography.
2.2.3TOWS MatrixCompetitors (strengths and weaknesses) Being the
sixth company to involve in photography services provider,
MicroView Photography has to compete with several existing
competitors. Table 1.0 shows the strengths and weaknesses among the
competitors.
Table BP 1.0 Competitors strengths and
weaknessesSTRENGTHSWEAKNESSES
Popularity. Family business. Provides high quality picture and
beautiful. Have good photographer.
New company. Payment fro costumer delay. Cannot handle many
costumer at the same time. Cost time to serve will loss
customer.
OPPORTUNITIESSO STRAEGIES(Identify strategy to advanced)
EDM must regularly make marketing by online to increase demand.
EDM must regularly show their work to customer to attract them.
WO STRATEGIES(Identify strategy to overcome weakness) They must
make sure costumer making the payment first They must expend their
business by hiring more photographer to handle many request from
costumer.
New business industry. Dont have many competitor. Business that
everyone need. Promoting by online medium.
THREATSST STRATEGIES(Identify strategy to avoid threats)
EDM should build official website to make the business more
professional. Also, they can add more more service such as organize
event also expend to make production film. Provides customer more
choices.
WT STRATEGIES(Identify strategy to avoid and overcome)
They must expend their business to new location so they can
handle costumer that away from Kuala Lumpur and Selamgor. They must
have backup plan if something bad happen. They also can hired
bodyguard to protect them.
Competitor with the area that provides same sevice. Conditions -
especially a rainy and get costumer away from Kuala Lumpur and
Selangor. The equipment are broken or had been stole.
2.2.4Competitor Analysis4PS
Edm PhotographyNicholas Kong Photography
PRODUCT
Photos. Variety of album. Variety of package. Per event Photos.
Variety of frame. Variety of package. Per day.
PRICE
RM 1,200 for 1 day 2 events. RM 1,900 for videography. RM 1,400
for 1 events. 2,400 for videography.
PLACE
8th Level, PavilionJalan Bukit Bintang 55100 Kuala Lumpur.
Sungei Wang Plaza, Jalan Bukit Bintang 55100 Kuala Lumpur.
PROMOTION
Referrals Referrals
Table 1.1 4P
2.3 MARKETING MIX2.3.0 Analysis and
Recommendation2.3.1Product
PRODUCT Photos photos
Variety of album Variety of frame Variety of frame
Variety of package Variety of package
Per event Per day
Analysis: EDM Event and Photography is provided the same
categories of products with the other competitors.
Recommendation: EDM Event and Photography should added more
albums and frames. That will provide more choices to customers.
Encourages other seller to put their product at EDM Event and
Photography stall to attract customer with the several of albums
and frames. Also they can provide some Package of the business. The
package that provides will increase sales and have a short time to
serve the customers.
2.3.2 PricePRICE Rm 1,200 for 1 day 2 events Rm 1,900 for
videography Rm 1,400 for 1 events 2,400 for videography
Analysis: The price that provides is based on current market. It
is affordable to public.
Recommendation: The price is determined by owner. The business
can cut cost in raw materials. But, EDM Event and Photography price
is base on day not events. Also, make a survey for the supplier
that can give lowest price for the raw materials.
2.3.3 Place
PLACE
8th Level, PavilionJalan Bukit Bintang55100 Kuala Lumpur
Sungei Wang Plaza, Jalan Bukit Bintang55100 Kuala Lumpur
Analysis:Based on the location, we can see that EDM Event and
Photography not very near and not really far with the others
competitor.
Recommendation: The place is strategic.
2.3.4Promotion
PROMOTION
Referrals Referrals
Analysis: They have a same way in promotion which is using
referrals. So, they cannot reach customer attention.
Recommendation: They should create a banner at the road side to
draw attention from people. Distribute the flyer or brochures at
the cooperate company in order to increases ordering services.
Gives discount or coupon to the customers.
3.0Human Resource Management.3.1 Introduction of Human Resource
Management.Objective of Human Resource Management To create a
proper management system of human resource. To ensure that
relationship between employees and employers are well organized. To
ensure that the performance of the employees within the business
organization is aligned with the organization goals. To control the
selection and development of the organizations employees. To
determine the most important job responsibilities based upon the
goals of an organization. Set employee objectives to make sure that
the differences in employees are respected. Maintain staff records
Ensure the organization is complying with the countrys employment
laws Recruit suitable workers Establish systems for compensation
and rewarding employees.3.2 Labor Rights All shareholders should
acknowledge the rights of staff according to the law in Companies
Act 1965.3.3 Other Matters Dismissed notice should be given by the
shareholder who wishes to quit from the business within 30 days
from dismissed date and agreed by other shareholders. The
contribution by shareholder can be claimed whether the company
gains profit or loss depending on the ratio of contribution. This
dismissal will be enforced within 24 hours of notice.
3.4 Background of The Purpose Project EDM has chosen Pavilion,
Kuala Lumpur as the location for selling their products. The
following section will explain the details of chosen location.
3.4.1 Physical location EDM is located in Pavilion, Kuala Lumpur
which it is also near to the armys attraction. This is because the
location is near to customer and residents area which can be said
to strategic because people do pass by the road and be able to
notice the shop.
3.4.2 Price of renting They had rent an office at Pavilion with
a price about Rm 1200 a year.
3.4.3Distance from customers EDM location is in residential area
and close to army camp it is easier for the customer to locate and
purchase the services of EDM company .3.4.4 Transportation
facilities Since EDM is located at the residential area and there
are public buses that enters and passes by so it does not be a
trouble for customer to get to the company. Therefore, it is one of
the advantages and opportunities to the premise to gain more
customers.
3.4.5 Basic amenities (electrical, water, telephone facilities)
The shop is located at the Pavilion, Kuala Lumpur which the
amenities are provided by the responsible companies. Most of the
amenities are easily to get since the place is not a new area and
these can enhance the business growth from time to time. The
support from those responsible companies is important to ensure the
business operation can be carried out with efficiently Tenaga
Nasional Berhad is responsible to provide the electrical supply to
the area including to the shop. The electrical supply is important
to the business to run their daily business operation such as
lights and fan. Syarikat Bekalan Air Kuala Lumpur Sdn. Bhd.(SYABAS)
is responsible to supply water to the Kuala Lumpur and Selangor
area. Water supply is an important factor to operate the business
and ensure the cleanliness of the product. TM Company is
responsible to provide the telecommunication devices such as
internet connection and telephone line. This helps the seller to
call the customer and also be able to receive orders through social
media such as Whatsapp, We Chat, Facebook or even Twitter.
3.5 Organization Chart/ Structure EDM uses an organizational
structure to make ease the business operation so that there will be
no work loaded and confusion among the manager in business. By
having the structure it helps the business owner and the managers
to run the business efficiently and smoothly. The organizational
structure will help to cover all the business entity. Below is the
figure of organizational structure of EDM
MANAGER
PHOTOGRAPHER1EDITOR2PHOTOGRAPHER 2EDITOR1ORK
3.5.2 Defining Job RolesTasks /Position
Responsibilities/Job Description
Manager/Owner To prepare policy of the business. Responsible for
overseeing all administrative functions in your business. To plan
and monitor the strategic process of the business. Accountable for
the overall performance of the business Make financial and account
works. Managing the premise
Worker Manage the customer order to the product. Manage the
deliveries, product supplier and customer service (complaint /
feedback). Be able to carry out the duty accordingly to the needs
Make a promotion (distribute flyers, brochure and etc).
3.6 Selecting, Recruiting and Planning The EDM will use the
application forms and conduct the interview to value the
applicants. After the accomplishment of the interview, the employer
will check references and other background information. References
checking are important to ensure the attitude of the applicant
towards work. The applicants also will be given a trial month
within a month to see the performance. The given trial month also
will provide on-job training. Therefore if the applicants can do
the work, he/she will be a permanent worker. As to maintain a good
worker, the employer will keep monitoring the employee.
3.6.1 Succession Planning Develop the business widely to whole
Malaysia by having several branches. Market the business through
any medium including the social media.
3.7 Legal Contract Issues EDM has made some regulations based on
the act issued by the government. Therefore, it is important for
the employees of the business to obey to the respective rules and
regulation that has been made. The applicants who wanted to work in
EDM need to make an agreement contract with the business so that if
anything happen, there are pros and cons between both parties. The
employee who wanted to resign from works also need to provide an
early resignation letter a month before date of resign to the
business with reasonable reason. The business has a right to take
an action if there is a breach of the contract.
3.7.1 Licence Issues The legal structure of the EDM is a type of
organization registered in Malaysia under the Registration of
Business Act 1956. Under the jurisdiction of Suruhanjaya Syarikat
Malaysia (SSM) or Companies Commission of Malaysia (CCM) under
Domestic Trade and Consumer Affairs Ministry which requires the
minimum age of 18 years and above to register.3.7.2 SalarySHIFT
WORKING
Freelance photography.
Editor .
PAYMENT FOR WORKERSRM 1000 per week(if have a job)By owner
HOURS
5 hours
Unlimited
As stated in the contract of agreement, the salary will be paid
on 28th at every month by debiting the cash to their accounts. The
basic salary for every new employee is RM 900 as been stated in the
Minimum Wages Policy. The commission will be added to the salary if
the employee has made sales to the business. If the business does
make a high sale the salary of the employee will be increase. The
business also did offer the students to make a side income by
joining the business as a part timer. The annual leaves given to
the employees are 8 days per year as been stated in the Employment
Act 1955. The business can also provide more than 8 days per year
based on the business policy.
3.7.3 Rights and responsibilities of employers and employees The
employers and employees has the responsibilities to each other in
order to make the business operation goes smoothly. These rights
and responsibilities relate to areas such as Health and Safety, the
provision of Terms and Conditions Employment, Equal opportunities
and the right to be paid a Minimum Wage. Employees are expected to
carry out their work in a way that has regard to the safety of
others. Employers are expected to abide by a range of requirements
governing such as providing safe machinery and equipment, carrying
out regular health and safety checks. Ensuring the training of
employees in health and safety issues and carrying out risk
assessment to assess the dangers of particular work activities.
There are also specific regulations about the way in which
potentially harmful substances should be used and stored.
3.7.4 Working Hours Every employee who works with EDM needs to
work for at a time with a different operation. The employee will
work at the different time. For example, the employees can select
their leave during the weekdays exceptional for weekends which need
to be considers. The business do operates daily.
3.7.4.1 Overtime Overtime will be given an employee when the
employer needs the staff to work more than 8 hours. It is also
defined in the Industrial Relations Act 1967. The employee will
need to do overtime when there are a lots of works need to do and
the works cannot be done within the current number of employee. If
some employee is unable to work on that day, the employer will be
directed to employee who had worked on that to make overtime. The
employee also will be paid 1.5 times hourly rate of pay on normal
days works, 2 times the hourly rate of pay on rest days and 3 times
the hourly rate of pay on public days( Independence Day, Sultans
Birthday, Malaysias Day and Labor Day) work. For example, RM 900/26
(basic salary/working days) =34.17.Then, 34.17/ 8hours = RM
4.33.Thus, overtime equals to 1.5 x (RM 4.33x overtime working
hours)
3.7.5 Medical Allowance Medical allowance will be provided in
the event of illness. Employees has a right to get a free medical
of they are injuring while working. Besides that, employers should
select a panel clinic for the employees to refer. This helps to
prevent the employees from cheating over the business.3.7.6
Maternity Benefits As been mentioned in the Employment Act 1955,
every female employee is entitled to 60 days and not less maternity
leaves for every confinement period which have served the employer
for a minimum of 90 days. Allowance is not given to employees who
have more than five surviving children . The employee needs to
notify the employer of the pregnancy at least four months from the
due date.
3.7.7 Insurance Insurance will be given to all workers and the
business. Insurance is the most important thing that the business
need to covers and prepare in case there is anything bad happen.
The insurance will act as a protection for the business if there
are any losses. Type of insurance selected is AIA Takaful
Insurance: A-Mas (Protection + Medical + Saving) = RM 158 x 6 = RM
948 The total budget for insurance including all the employers and
employees.3.7.8 Bonus and Rewards Bonus will be paid depending on
the staffs job performance. Bonuses that will be given to the
employee are to ensure the privilege and the work quality is
better. The bonuses will be given of one time a year. Offering
bonuses is a powerful way ensure the employee are working hard to
help the business meet the goals and to acknowledge exceptional
performance. The rewards for the top performance in each month will
be given for the employee to show the business appreciation towards
their job performance. The rewards also may be based on attendance,
performance, competence and also sales. The rewards may include the
non financial rewards such as extra off days, certificate of
appreciation, holiday sponsor and reward for long service.
4.0 OPERATIONAL MANAGEMENT4.1 Legal Environment4.1.1 Operating
Laws and Licenses.1. Most business is regulated and there is much
government and legal oversight to make sure that EDM Event and
Photography are operating correctly within the confines of the
law.1. There are few legal considerations to be familiar within
when starting EDM Event and Photography business. 1. The Malaysian
Government principal agency for the promotion of the manufacturing
and services sectors is the Malaysia Investment Development
Authority (MIDA).1. There are specific sector of regulations issued
by the relevant governmental departments that require prior
regulatory approval before the commencement of business
operations.4.1.2 Business Law1. One of the first legal decisions
must make when starting a business can also be one of the simplest
the business name.1. Cannot use the name of a business that already
exists.1. Check with business listed in the local area, as well as
online, to determine whether the name EDM Event and Photography
want to use for the business has already been legally registered by
someone else.1. Every business should be registered in Suruhanjaya
Syarikat Malaysia (SSM).4.1.3 Business structure1. There are a
number of legal business entities, from sole proprietorships, to a
partnership, limited liability companies and full corporations.1.
Determining what is involved in starting the business with help
determine what type of business entity EDM Event and Photography
wish to form.1. Need to register in order to be a legal business in
most states, as well as for tax liability purposes.1. Give careful
consideration to how EDM Event and Photography wish to proceed when
it comes to registering the business.4.1.4 Business licenses1.
Think about what business licenses need to operate legally in the
area where to set up a business.1. Most municipalities have
regulation on what types of business can operate in certain areas
and most also have specific licensing requirements before business
operations can commence.1. Have obtained the proper business
license for the type of business that want to operate in order to
avoid fines or other legal trouble for EDM Event and Photography
start-up venture.4.1.5 Labor law 1. The Department of Labor is
responsible for the administration of labor laws in order to
maintain industrial harmony.1. The labor laws stipulate the minimum
requirement that applies to all types of employment.1. Flexibility
in the operation of business is facilitated by application for
exemption to the Director of Labor, Department of Labor.4.1.6 The
Labor Ordinance, Sabah and Laws Ordinance, Sarawak.1. The Labor
Ordinances Sabah and Sarawak regulated the administration of Labor
Laws in their respective states.1. The provisions of the Laws
Ordinance, Sabah and the Labor Ordinance Sarawak are similar to the
provisions of the Employment Act 1955.
. 4.2 Operation Business StrategiesThe strategies for business
for EDM Event and Photography are: EDM Event and Photography will
be operated as legally because they had registered with Suruhanjaya
Syarikat Malaysia (SSM). Then, that EDM Event and Photography will
find the workers that can do the job. The workers will be trained
on the job training. Ensure all the tool and gadgets is in the good
condition. The operation starts daily on time. The event and the
photography session has to have good service to be delivered to the
customers that pay them to provide the service. If customers make
complaints about the service they will refund the money Provide a
reasonable price in our services so that we can compete with other
competitor. EDM Event and Photography will ensure the workers,
those who have to deal with customers are friendly, have a good
personality and good communication and well arrangeAll these
strategies will help the business of EDM Event and Photography
successful in operation and production. If EDM can follow it
wisely, the business will be prosperous in the long term.
4.3 Business Operation HoursOPERATING DAYSOPERATING HOURS
Monday Friday9.00 A.M. 6.00 P.M. Editing. Marketing. Shooting
event.
Saturday and Sunday9.00 A.M. 7.00 P.M. Shooting corporate event.
Wedding event
During Ramadhans MonthOPERATION USUALLY.
Table 1.1: operation Hours Theres a difference time operation
between weekdays and weekend. This is because a lot of event will
be happen usually in weekend. During Ramadhan, they will operation
usually because they will get offer to create charity program and
open fasting ceremony. The will make sure the service that EDM
provide is good service.4.4 Business layout
4.5 Location EDM Event and Photography will be operated in No
168, Level 8 Pavilion, Kuala Lumpur, Malaysia. Below is the detail
about the location:
Picture 1: The map shows the location of the business4.5.1
Population: EDM Event and Photography aim to target the market make
people more to believe to them . As shown above, the location is
very strategic because the location is class location .4.5.2 Site
Visibility: Located at very strategic place because everyone
recognize the place pavilion in Kuala Lumpur. Near to the roadside.
Bundles of high class building in that area.
4.6 Workers in Operation Activities EDM Event and Photography
operated systematically because EDM have divided the task. Every
person should take action to ensure the progression of the business
turned well.
TaskPerson in charge
Inventory purchase Owner (Mohd. Yusri)
Inventory organizing and checking Owner
Editing Owner Editor.
Event Owner Photography
Table 1.2 :Operation Activities.
4.7 Process Flow Chart4.7.1 The process flowchart The process
flowchart used primarily in manufacturing industry where there is a
requirement of depicting the relationship between major component
only. Process flow diagrams for single units or multiple units
differ in EDM Event and Photography structure and implementation.
Hence, flowcharts are maps or graphical representation of a
process. Steps in a process are shown with symbolic shapes, and the
flow of the process is indicated with arrows connecting the
symbols.
SymbolTypes of ActivitySymbols Description
OperationThe activity of material being modify, transform and
give add value.
StorageThe finished products are stored in the storage area
TransportationThe activity of received materials and delivered
the product from one place to another
DelayProcess of growing the materials or waiting for next
activity.
InspectionThe activity of measuring the standard quality of the
finished product or increase the quality
Table 1.3: Flow chart process.
4.7.2 Process flow chart for EDM Event and Photography.
1. Purchases photography items from the supplier
2. Receive and set up the right place for all the items
3. Create a simple slide show or video
4. Attract the customer from the visual presentation
5. Conduct marketing activities such as promotion and discount
for large amounts of purchases6. Sell the packages based on
customer demand
7. Issue invoice and receive deposit
8. Present the best shot for their photo and video.
4.8 Production schedule / capacity Table 1.4 shows the
production schedule or capacity planning for EDM Event and
Photography based on monthly production.
Table 1.4 Production Schedule No. Time of production Quantity of
ProductionGoods peer month
1Monthly Production Produce / editing photo and video 3 sets
(For 3 set events)
4.9 Material Requirement EDM Event and Photography calculated
the material requirement based on EDM Event and Photography events
per month. EDM Event and Photography monthly sale is approximately
3 sets of editing video and photo per month and every event
normally includes packages of photo and video. The cost for a
editing process is RM 3000. Hence, the total cost of raw material
per month is RM9, 000 as shown in Table
MATERIAL REQUIREMENT NoItem Quantity RequiredSafety Stock Price
Unit(RM)Supplier Total Cost(RM)
1.Camera3 photo 3 video(1 events : 3,000)1,2001,8009,000
Total9,000
Table1.5 Monthly material requirement for EDM Event and
Photography
4.10 Operational Budget per Month Operation budget are based on
overall budget that associated with the expenses of the operation
plan. The business plan needs to estimate the budget for the
operations activities. This operation budget is important because
it will be one of the inputs to prepare the financial plan. Table
1.6 shows the operational expenditure of EDM Event and Photography
.
Table 1.6 Operational Expenditure of EDM Event and Photography
OPERATION EXPENDITURE
RMRM
Fixed Asset / Capital Expenditure Printed Machine
Working Capital / Monthly Expenditure Edited photos and videos
Assistance for printing (salary)Utilities ( Overhead Cost)Photo
material10,000
9,0001,00021010,000
10,000
20,210
Total30,210
5.0 Risk Management
5.1 Financial Risk There are many competitors around the
business. EDM Event and Photography will face with financial risk
if customer not comes to use EDM service. That is because customers
become the first thing that gives value to this business. EDM Event
and Photography should take easy plan to manage the risk so that
business able to manage their problem in the future. In the
financial risk, basically business will loses customer or profit.
So, EDM Event and Photography should take action in order maintain
profit of his business. EDM Event and Photography must has own
financial report so that can refer any mistake happen during whole
day and compared it with previous. 5.2 Legal Risk EDM Event and
Photography should follow the regulation of government. By getting
valid business license. Getting valid license that ensure his
business running in good condition.5.3 Environmental Risk During
the weekdays, costumer are rarely came the EDM to offer the event
and photography job. This is because the event usually people have
doing during weekend. That why during weekdays EDM doing the
marketing through online and offline to get offer from costumer.5.4
Economic Risk EDM did not affect the economic risk. This is because
EDM does not have high maintenance compare other business. The
effect that EDM will be face is not very high pressure.5.5
Demographic Risk EDM Event and Photography facing the problem in
photographer because EDM only hired freelance photographer. This
can cause during event they hard to find photographer that can
follow them. So the best solution is hiring the fixed and
professional photographer for them doing the job. People or
customer will more trust the EDM service because EDM have
professional people. 5.6 Statutory Risk Medical allowance will be
provided in the event of illness. Employees have a right to get a
free medical if they are injury while working. Insurance coverage
will be given to all workers, the premise and transportation. Bonus
will be paid depending on the staffs job performance. Bonuses will
be given to all employees to ensure they get the privilege and
seeks to ensure that the quality improvement work is better.
Overtime has been given if the employer really needs staff to work
more than 8 hours and employer would charge to pay more. So that, a
CCTV for example should be apply at the building to make sure the
security of the building.
5.7 Strategic Management Risk 5.7.1 Location risk The location
of the premise is quite strategic which located at Pavilion, Kuala
Lumpur which is at the most popular place in Kuala Lumpur. There is
huge number of potential customer that working in Kuala Lumpur
which usually recognize that place and have high expectation about
the place. This can make customer feel more comfortable and know
how professional EDM in delivery service.
4.3 Property Risk4.3.1 Personal Property Risk The personal
property risk that this business needs to bear is the depreciation
of machinery and equipment. Each year there are certain amounts of
value that the machinery and the furniture will depreciate. This is
an important figure for the EDM to get a clear net profit at the
end of the year. EDM needs to decide in buying the personal
property and furniture that have the lowest amount of depreciation
value.
4.4 Other Risk4.4.1 Government Policy Risk EDM only follow the
rules that had been guideline by the SSM. The implementation of GST
doesnt effect EDM Event and Photography.
4.4.2 Consumer Behavior Risk The risk is when costumer payment
was delay to the EDM This can cause EDM hard to making rolling in
the business and make operation slow. EDM Event and Photography
always asked the full payment from the costumer regarding the
problem that he facing. EDM Event and Photography always deal face
to face with costumer who want to use his service. 4.4.3
Operational Risk When conducting extreme event they always must be
prepare to the danger. When EDM Event and Photography doing the job
the probability the tool and gadget to be stole is very high. The
chances the tool and gadget are broken is very high if EDM does not
take the responsibility. 4.5 The safety equipment that should have
at EDM building. CCTVFEATURES PRICE (RM)
Wireless CCTV Rotate & record from anywhere in the world
Connect & monitor up-to 9 cameras on one screen One camera can
scan all areas of its Surroundings. No long wires or expensive DVRs
needed. Motion Sensor Alarming & Auto Recording
RM 129.00
Latest Full 8CH Support 960H (WD1 - 960*576) / D1 (704*576)
Support P2P function, No need setting router Most Simple Setup DVR
Support Smartphone, Computer Monitoring Support BNC/VGA/HDMI Video
Output Come with 4 Port Audio Function
RM 448.00
3.6mm/4mm/6mm/8mm lens optional. 300000 pixel high-resolution
1/4''CMOS imagesensor. Support 128M-32G TF card;4.24PCS IR Led,
5~15 meters night vision Encoding: MJPG Signal System: Digital
signal. Resolution: VGA 640 * 480. DC supply. Input: AC220/110V,
Output: DC5V/1A. Support system automatically real-teal-time
adjustment. BNC Conector or AV Connector for connect on TVRM
90.00
Recommendation: We suggest EDM should have CCTV camera in their
building because it can prevent anything bad happen such as
robbery, thief, and many. EDM can purchase the third CCTV on the
list because it cheap and have good quality.
SMOKE DETECTORS.FEATURESPRICE
General purpose and ideal for all areas. Easy to install with
mounting hardware included. Alarm test button for easy recommended
monthly testing. Low battery warning. Ionization technology for
early smoke detection from all directions. For protection, a safety
clip will not allow mounting without a 9 Volt battery included.
Loud 85dB alarm signal.RM 25.90
Mode :W-13DSD Image Sensor :1/3 Sony color CCD PixelsPAL: 500582
Resolution : 420TVline Minimum Illumination: 0.5 Lux/F1.2 S/N
Ratio: 48dB Video Output: 1.0Vp-p/75 BNC White Balance: Auto Lens:
3.6mm Electronic Shutter: 1/50(1/60)-1/100000seconds Power Voltage:
DC12V Operating Temperature: -20c to +50c Size: 100x65mm
RM 99.00
Operating Voltage: 9VDC Detector Type: Photoelectric Diameter:
105mm Height: 55mm Operating Temperature: -10C to + 60C Weight
140gm Maximum Quiescent Current; 15uA Sounder; 85dB Low Battery;
Sounder Chirp and Simultaneous LED Flash Chamber Degradation
(Dirty); Sounder Chirp between LED Flash Test Button
RM 29.00
Recommendation: Smoke detector is important in EDM building
because if fire is happen EDM can be warned early and can save
equipment. EDM should have a Smoke detector and we have a list for
EDM. We suggest EDM should purchase the third Smoke detector
because it cheap.FIRE EXTINGHUSERFEATURESPRICE.
FLAMMART FP-1 ABC Dry Powder 1.0kg Passenger vehicles, boats RM
75.00RM 75.00
FLAMMART FP-2 ABC Dry Powder 2.0kg Commercial vehicles, boats,
homes
RM95.00
FLAMMART FP-4 ABC Dry Powder 4.0kg Home, Industrial &
Commercial Applications
RM115.00
Recommendation: EDM should purchase fire extinguisher. EDM
should purchase the first type fire extinguisher because is small
and cheap. Is important to EDM have the fire extinguisher because
if there is fire.
6.0 FINANCIAL ANALYSIS.6.1 Ratio Analysis Year 2013
FINANCIAL RATIOS1. Shop profitability on its assetsFORMULATotal
Asset Turnover= Sales / total assets
Operating profit margin= Operating profit / salesANSWERS= 123460
/ 9000= 13.718
= 30210/ 123460= 0.245
2. Rate of return earned by the owners on their equity
investmentReturn on Equity= Net profit / ownership equity=92390 /
5000= 18.478
To get a total asset turnover , Rm 123,460 is a total of the
sale from profit of EDM Photography. After that, is divide the
total cost of raw material per month is RM9, 000. Then it will get
a 13.718 for a total asset turnover. Operating profit margin is a
operating profit that worth Rm 30210 from operating expenses.
Operating profit is divide the total cost of raw material per month
is RM9, 000. The answer of the operating profit margin is 0.245. T
he return on equity is is a net profit/net income that worth Rm
92390. After that is owner ship equity is rm5000 that is a first
owner modal to open the EDM Photography. The finally the return on
equity is 18.478.
6.2 Current ratio of EDM Photography
RatioYear 1Year 2Year 3
Current ratio=
Current assetCurrent liability
90005000
= 1.8150007000
= 2.1432500010000
= 2.5
The higher current ratio is good because will able to meet short
term obligation.
6.3 Ratio of fixed asset turnover for EDM Photography.
RatioYear 1Year 2Year 3
Fixed asset turnover=
Sale Net income
9400050400
= 1.8611240075430
= 1.5012346092390
= 1.37
The higher fixed asset turnover is good because efficient in
utilizing their net fixed asset to generate higher sales.
7.0 APPENDICES7.1 The forecast sale of EDM Event and Photography
in three years.
Month Sales for 3 Consecutive Years (RM)
First YearSecond YearThird YearTotal Sales
January-9,0009,90018,900
February8,0008,8009,68026,480
March8,0008,8009,68026,480
April8,0008,8009,68026,480
May8,5009,35010,28528,135
June8,5009,35010,28528,135
July8,5009,35010,28528,135
August8,5009,35010,28528,135
September9,0009,90010,89029,790
October9,0009,90010,89029,790
November9,0009,90010,89029,790
December9,0009,90010,89029,790
TOTAL94,000112,400123,460330,040
7.2 EDM Event and Photography Income Statement for the end of
year 2014
RMRM
REVENUE
Sales:Wedding event Corporate event74 46050 000
123,460
OPERATING EXPENDITURE
Operating expenses30,210
Marketing expenses860
31 070
NET INCOME92 390
