Analysis of Nano Energy Water Flask Company

psychoanalysis of Nano pushing Water flaskfulfulfulful Comp whatsoever1.0 EXECUTIVE SUMMARY1.1 bank line Idea and GoalsCEC Trading Ltd. is a Nano postcode Water flask craft confederation in Miri, Sarawak. The produces that we interchange atomic number 18 pissing flasks that expel charges to the weewee with lofty come in of controvert ions, which is good for our clay. This comp each(prenominal) intends to be the better irrigate flasks trader in Malaysia. It is beca occasion the pissing system flasks that this society is betraying are one of a kind. It too do up of good quality and the reveallay is very affordable. Three elements that this company concentrates on in separate to reach our goal are our customers, our supplier and our use upees.The major shareholder of this company (Vivian nongonococcal urethritis) intended to learned person the telephone circuit with much than 5 employees and dole egress approximately 10500 water flasks in the init iatory course of instruction which leave behind increase in rational measuring stick in the interest month. The company intends to generate at least MYR 294,000 in gross sales revenue and situate MYR 65,200 winnings in the end of its original twelvemonth of trading.1.2 merchandiseThe main scores of this pedigree are customers range from students to workers, most likely bothone. Our company has a warehouse for storing the water flasks and we had chosen a strategic place which is find out at Jalan Bintang, graze Lot No. 68. On the different hand, our company is exchange the Nano zero water flasks in Parkson, which is located in a shop m alone named Bintang Plaza. The reason we chose Bintang Plaza as the main location for our business enterprise is because of the huge draw of customers who visit Bintang Plaza daily.1.3 harvest-feastsNano efficiency water flasks set up release charges to the water with high amount of negative ions, which is good for our torso. I t can re keep the waters PH level to the rarefied level, which is 7.0 to 7.4. Thus, it testament change the water to alkalic water which benefit to health. The Nanotechnology breaks down water molecule into smaller possible size of it so that they are more easily absorbed by the body.Therefore, the taste of the water is smoother, sweeter and easily absorbed by our body cell as osmosis whitethorn occur easily. Drinking energized water regularly in any case unploughed us outdoor(a) from suffering different kind of health diseases. Moreover, the energized water pe kalerates deep into the body cells more easily, transfers nutrients to the body more efficient and takes away un-useful overlap from our body system, thus making us strong and healthy.1.4 Sales and PromotionPromotion of the business allow for take place utilize a sort of methods, including advertising through distri besidesing flyers from school to school, making banner, emails and telephone request. We depart p ay a a couple of(prenominal) workers to distribute flyers from one place to another place. For examples, Curtin University and always all the secondary school in Miri, Sibu and Kuching.1.5 FinanceCEC Trading is a self-funding company as the sign shareholdings of RM 8000 will be injected by the major shareholder of the company (Vivian Ngu), and RM 5000 by other shareholders (Damilola, Faiznur Dilan, Wong Wen Yi and Wong presently Siong). The company estimating the business will always turn in a positive protect of cash special in all(prenominal) month for the world-class year of the operation. The company will not apply for any form of loans from outside party including bank in the first year of the operation.2.0 BACKGROUND2.1 Mission StatementCEC Trading Ltd. is not altogether aim to be one of the salutary-known Nano Energy water flasks traders in Malaysia but as well as aim to be the best water flasks trader in Malaysia. We want our harvest-time which is the unique Nano Energy water flask known as the best water flask in Malaysia as it is a beneficial harvest-home and it is do up of good quality. As well as any other company, we also would like to gain profit as much as possible.In order to attain our missions, our company will focus to the followings1. The ProductOur good which is Nano Energy Water Flask is made with 304 innoxious steel. There is a riddle inside the water flask which will be builded up from 13 kinds of natural materials much(prenominal) as tourmaline, zeolites, manifanshi, nano silver powder, kaolin earth, rare earth, far infrared radiation stone, muyu stone, clay and others. The combinations of different kind of natural resources are authorize scientifically to give highest efficiency to the water.2. The EmployeesThe employees will be trained to do their own manipulation efficiently. They will also be motivated by tending program which consequently they will produce bump performance.3. The ConsumersWe are targeting a dult as well as children and ageing people to consume our harvests since our overlap is obtainable to any age. We would like to make sure that our customer satisfied with their purchases of the Nano Energy water flasks.For the corking, the amount capital postulate to start the business is RM28,000. The amount of capital stated is needful to cover up all of the essential expenses that the business required to trammel up the business. The sum of capital that stated above is also needed to achieve a positive cash surplus in the first month.2.2 troupe HistoryThis is a new business which all started from the ceremony that we, the shareholders made. We had a discussion and came up with an idea of selling water flasks. The water flasks that our company be after to sell are water flasks with finicky features and benefits, which are the Nano Energy water flasks. This water flasks release charges of negative ions to the water and it is good for our health. In addition, the reason we chose to sell Nano Energy water flasks is due to the high demand of health products which needs a huge amount of money. On the other hand, we can also deliver the environment by reducing the use of plastic water bottle. Thus, by combining both of these situations, this company is set up. Furthermore, customers will not have to eliminate lots of money for their health products instead they can bribe the Nano Energy water flasks which only exist them MYR 28.2.3 backup GoalsThe perfectly-term goal of this company is to employ at least 5 persons full season on a salary of approximately MYR 4,900 per month. Our company planned to run our business within Sarawak for a start. The Nano Energy water flasks will be distributed to a most parts of Sarawak which are Miri (the main place of our business), Sibu and also Kuching. Furthermore, our company targeted to sell about 10500 water flasks in a year, which would probably increasing in the following month and gain a net profit at lea st MYR 65,200 for future investments.For the colossal term goal, our company wanted to expand the company into a bigger company by selling the Nano Energy water flasks to West Malaysia and Sabah. This is because we want to hold out our market range and we would like to gain more profit. In order to achieve our long- term goal, we will analyse our weaknesses and strive to modify our business strategies.3.0 marketplaceCEC company is a trading company that buy product from a manufacturer (whole sellers) then sell to retailers which is to the shop we determined to sell our products. Then we sell our product to consumers. The new product we are introducing into the market is a product from Vuitton Silver Manufacturing Company that sells different types of water flask in Malaysia such as Vacuum water flask and Nano Energy water flask. The product we are introducing is Nano Energy water flask which helps to charge water with high amount of negative ion which are absorb by the body. Du e to the fact that more than half of our body consists of water, water is an in-chief(postnominal) element which is needed by everyone. Thus it is important that we consume healthy water daily. Nano Energy water flask can change the water ph level to be alkaline. Other than that, it can also breaks down water molecule into smaller size which then can be easily consume and the taste will be sweet and smooth. Furthermore, alkaline water can build up better resistant body system thus prevent us from easily infected by diseases. For advertise information, drinking this energized water often also enhance our bodys metabolism and can concern about our beauty. However, the most important key layover in drinking this energized water is keep us away from all kind of diseases. Due to the fact that our warehouse is in the state of Miri, Sarawak, our product can be found in Parkson which is in Sibu, Miri and Kuching. This water flask can be use by children as well as adult.3.1 Market abbrev iationDue to the question carried out by the CEC Company, we found out that there is a lot of water flask that were on the market, but their functions are only to keep warm or keep cold. Thus, our company decided to do trading on a new type of water flask, which is for consumers health purpose. other thing that the business concern about is about environmental friendly.3.2 SeasonalityThe major of our sales revenues are in February to November. This is because there are no long holidays or school holidays. Thus, the customers might saw the advertisement for our product and purchased them. In the other hand, due to the holiday season such as Celebration or summertime break periods, the people might be passing out for vacation thus will decrease our sales revenues.3.3 CompetitorsThere are lots of competitors in the market who have products that perform same function with our product Nano Energy water flask, virtually of the companies are listed belowI. ENCHANCE PLASTIC exertion S DN BHD, MALAYSIAII. TAIZHUU GANGLUNG PLASTIC CO.LTDIII. KSK GLOBALINK MANUFACTURING SDN BHDIV. ELLEDI (M)SDN BHDV. ZHEJIANG TYSESO INDUSTRY TRADE CO.LTD.VI. YONGKANG SHIQIANG HARDWARE PLASTIC CO.LTD3.4 Market OverviewThe major target market of CEC Company is student, workers, athletes and the public in general. Nano Energy water flask produces storages where you can investment firm your water to drink anytime which is tasty. Our product is convenient, easy and collectable, it is also pleasing to the eyes as it will be in three colors silver, red and ignominious which makes the demand for the product higher because it is also affordable in terms of price. Other than that, we also provided telephone ordering for customers need.3.5 SWOT AnalysisWe carried out an analysis on the market situation on our product with the use of SWOT analysis, which we make improvement in our business. SWOT Analysis represents the strength, weakness, opportunities and threats of the business. by dint of SWOT Analysis, it can guide the company to work on our weakness and threats where as maintain our performance regarding the strength and opportunities(citation business management).STRENGTHThe strength is an initial factor which increases value for our business. The strength of nano energy water flask is to have been strong enough to get them a higher place in the advertize market even with various imitations from other competitors who are in the market or wants to come into the market with similar products. It can be measured using indwelling assessment.Quality of the brandStrategic locationSustainability of the productHealth careLight weigh of the productWEAKNESSWeakness is also an internal factor that decreases the value of the business. We need to fail our company weaknesses so that we can make improvement based on them. drop of marketing skillLack of workersLimited budgetLack of advertisementConsistency of supplierOPPORTUNITIESOpportunities are external factors that add value in the business. The business needs strategies to perform better performance.Expose our products in other countriesSpecial promotion during special eventsImprove the skills of workersTHREATSThreats are the external factors that decrease the value in the business. The business need to be aware of the threats that may be occurred.Existence of substitute goods in the marketDelayed of the products due to the transportation problems3.6 MARKETING PLAN3.6.1 Production/ Service keister MarketThe 2 main targets of doing this business are to improve the healthiness of consumers and to concern about the environment. Nano Energy water flask is a good product which helps to transform the water into alkaline water which is good for health. It is also convenient in the aspect of shape and size which makes it very easy to be carried around by anyone who needs a flask to store their water to take to either school or workplace and even to sport arenas. It is a stainless steel bottle which mak es it more attractive and presentable. The fact that it is a stainless steel does not mean it going to get rust easily. On the other hand, since the product is made of stainless steel, it can be use for at least one year. Thus, we can be environmental friendly by saving the consumption of plastic water bottle.3.6.2 PlaceAlthough the business is doing trading to Miri, Sibu and Kuching, our main business is in Miri. Nano Energy water flask is classified to be a household product, thus it can be found in Parkson, in the department where they sell household products. We also need a warehouse to store all our products.3.6.3 PriceVuitton Silver Company supply Nano Energy water flask to the business with the cost of RM15 each. This cost will be derived after the import of all the money use in the production of the flask, such as buying of the machinery, steels, wages of employees, vehicle for distribution, insurance, rents and other expenses. After doing the analysis, our company tends t o charge RM 28 for the product which can provide lolly on every sales and this price can be afforded by customers.3.6.4 Promotion and AdvertisementOur company tends to bracing the general public about nano energy water flask through various means in other for them to know about the product. A research was done on the strategies needed to promote the product in the market. As a result, we made use of the following promotional tools in the business.fliers and handbillsposters and bannersemails and telephone data link3.7 Evaluation of MarketCEC Company carried out an evaluation on the market, using the market strategy which is carried out at the end of every year to analyze the sales data of Nano Energy water flask to turn over it performances in the aspect of the quantity that has been sold and as well as profits made. ground on the cash flow forecast, we have cash surplus of RM 65,200 during the year. This proved that the promotions and sales have been done effectively.4.0 OPERAT IONS4.1 Legal and Licensing Requirements(a) Business name and reasoned structureCEC Trading Ltd is a proprietary limited company. The company structure has already been registered and start up with five shareholdersVivian Ngu Yen Shya (25% shareholding)Wong Wen Yi (18.75% shareholding)Faiznur Dilan binti David Ismadi (18.75% shareholding)Damilola (18.75% shareholding)Wong Soon Siong (18.75% shareholding)Who also serve as the directors of the entity.(b) Operating laws and licensesThe business needed a license to run the business legally.4.2 Management DetailsThe managing director of the company will beVivian Ngu Yen ShyaHome address 175, phase angle 2C1, Desa Senadin, 98000 Miri, Sarawak, Malaysia Ph (085) 656578 Fax (085) 656579Date of birth 25 November 1991Qualifications Bachelor of Business (Double Major in Finance and Management)Experience Management and Financial Advisors and owner of riches SpringConsultancies 1997 20034.3 Organizational Structure and StaffingMost of the jo b of the business will mainly be done by general manager. A warehouse is needed to store our products. General manager, sales manager and accountant will mainly be operative in the warehouse. On the other hand, 3 marketing expertise and 2 drivers are needed in doing sales and also deliverance.General manager The craft of a general manager are to manage all business plans and the performance of the employees. wages RM 1000 Sales manager* The duty of a sales manager is to deal and communicate with the owner of parkson in order to know the amount of sales revenue.* profits RM 700 Accountant* The duty of accountant is to record the business transactions, summarizing and analyzing to produce financial statement in the end of the period.* Salary RM 700 Sales advisor* The duty of sales advisor is to approach customers and advise them to buy our product.* Salary RM 500 Driver* The duty of driver is to deliver the products to the goal and also help to transfer the products to the s ales department.* Salary RM5004.4 Professional AdvisersAccountantSunlight Accountants55, fair weather Park, Tun Hussein Onn Road, 98000 Miri, Sarawak, MalaysiaPh (085) 668 132 Fax (085) 668 133LawyerJohn metalworker28, Fortune Park, Desa Damai Road, 98000 Miri, Sarawak, MalaysiaPh (085) 636 732 Fax (085) 636 735Insurance broker coast account may Bank Malasyia279, Bank Street, Pujut Road, 98000 Miri, Sarawak, MalaysiaManager Angeline TanPh (085) 678 588 Fax (085) 678 5794.5 Business PremisesLocationCEC Trading Ltd will acquire a business premise as an office which deals with the paperwork and also warehouse as the storage for stocks and equipments. The ideal location would be located at shop lot where we can store and sell the stock. The premise will be located at Shop Lot 608, Medan Commercial Centre, 98007 Miri, Sarawak, Malaysia. The price tag for renting the shop lot will be RM 1,500 per month. The shop lot will be repairing and do some painting. The goods that we sell will be distributed to the hypermarket, Parkson in Miri, Sibu and Kuching.4.6 Equipments RequiredThe equipments that required for the business will be Computers Printers Scanners Internet connections Fax machines Telephones Furniture (table, chair, shelves)The above equipments are some of the basic needs to run the daily business operation. The equipments required will change from time to time.4.7 Production ProcessesOur company will get the stock from the supplier, Vuitton Silver. The estimated amount around 1000 of Nano Energy water flasks will be order from the supplier every month. Therefore, all the stocks will be store in the warehouse. Then, the workers will distribute some of the stock to Parkson. The working hour is from 8am to 5pm every day except on public holidays.There are different types of color of the water flask will be sold such as silver, black and red. The product will be sold at RM28 each for every types of color. The selling price is enough to cover all the expenses as the cost price of each water flask is RM 12. It is a reasonable price as these Nano Energy water flask is good for health and can solve the skin problems.However, the office is apply as a place for the process of paperwork and storage of documents and equipments. The ordering of our company products and all the documents and accounts will be recorded down and will be kept. each the works in the office work will be done by the clerk and supervise by the manager.4.8 Critical risks/Contingency PlansCEC Trading Ltd will organize training program to all staff members for professionalism in running the business and also for contingency plans. The training will be on how they going to promote and sell the water flask.Insurance will be bought for business premises. The aim is to recover some assets in case of any accidents such as fires, accidents and thefts as well. Those liability and car accident will be cover by the professional indemnity insurance. The injury to the managing direct or will be covered by workers compensation.5.0 FINANCIAL PROJECTIONS5.1 Basic Assumptions and Information(a) Calculation of income and expensesExpenses are calculated based on research and managements knowledge of costs. Income or sales revenue is assumed to be paid within the month issued. The impact of inflation or increases costs is not taking into consideration.Depreciation of equipments purchased and vehicle purchased in June 2010 is calculated using straight-line method, at 10% per annum. Gross cost of goods is RM 168,000. Drawing is RM 200 per month. The projection is for one year and the figures are in Ringgit Malaysia.(b) Financing of the businessAn investment of RM 28,000 will be invested into the business according to our shareholdings Vivian Ngu Yen Shya RM 8,000, Wong Soon Siong RM 5,000, Wong Wen Yi RM 5,000, Faiznur Dilan binti David Ismadi RM 5,000 and Damilola RM 5,000. Sales income for June is based on early promotions, thus providing initial cash surplus and avoi d the need for any short term debt financing. The operation financing strategy is showing a cash surplus in the bank accounts with total amounts of RM 70,700. The business will open a cheque account that provides electronic funds transfer facilities for customers. A minimum of two shareholder directors is needed to sign all the cheques for security reasons.(c) Distribution of profits put ons in the first year will be retained in the business. In future years, three quarters of the annual net profit after tax will be paid to the directors at the end of the financial year according to their shareholding and the remaining quarter will be kept as retained earnings.The Sales Mix Forecast, Cash Flow Forecast and The Trading Profit and Loss Statement is prepared according to generally satisfactory accounting principles and conventions.(d) Goods and services taxAll forecasts are net of tax.(e) LoansThe firm has no online loans or debts.5.2 Analysis of Financial Forecasts(a) Net profit met e is used to measure the companys ability to earn a net income from sales.The net profit gross profit margin is calculated based on the first year of the projections.Net profit margin % = = = 22.18%Since this trading company is running the business for the first year, it is normal to get a relatively low figures of the margin. The margin is expected to increase in the next few years.Other than that, the company can use other ratios to do analysis on the financial statements in the coming years.(b) Break-even pointContribution margin is used to determine the amount of profit that is made towards payment of the resolved cost. Considered that cost of goods sold is the variable cost, the portion margin is equal to sales minus variable costs.Gross profit margin = = = 57.14%The fixed cost is projected to be RM 102,800.Break-even point in value = == RM 180, 350.88Accounting 062 May 28, 20105.2.1 Sales mix forecast5.2.2 Cash flow forecastCEC bullion FLOW FORECASTfor the period July 2010 to June 2011JuneJulyAugustSept.Oct.Nov.Dec.Jan.Feb.MarchAprilMayTOTALIncomeSales revenueRM 12,600RM 19,600RM 22,400RM 22,400RM 22,400RM 16,800RM 19,600RM 28,000RM 30,800RM 32,200RM 32,200RM 35,000RM 294,000Capital28,00028,000Total income40,60019,60022,40022,40022,40016,80019,60028,00030,80032,20032,20035,000RM322,000Analysis of Nano Energy Water Flask CompanyAnalysis of Nano Energy Water Flask Company1.0 EXECUTIVE SUMMARY1.1 Business Idea and GoalsCEC Trading Ltd. is a Nano Energy Water Flask trading company in Miri, Sarawak. The products that we sell are water flasks that release charges to the water with high amount of negative ions, which is good for our body. This company intends to be the best water flasks trader in Malaysia. It is because the water flasks that this company is selling are one of a kind. It also made up of good quality and the price is very affordable. Three elements that this company concentrates on in order to reach our goal are our customers, our supplier and our employees.The major shareholder of this company (Vivian Ngu) intended to initiate the business with more than 5 employees and sell approximately 10500 water flasks in the first year which will increase in rational amount in the following month. The company intends to generate at least MYR 294,000 in sales revenue and make MYR 65,200 profit in the end of its first year of trading.1.2 MarketingThe main targets of this business are customers range from students to workers, most likely everyone. Our company has a warehouse for storing the water flasks and we had chosen a strategic place which is situated at Jalan Bintang, Shop Lot No. 68. On the other hand, our company is selling the Nano Energy water flasks in Parkson, which is located in a shopping mall named Bintang Plaza. The reason we chose Bintang Plaza as the main location for our business is because of the huge flow of customers who visit Bintang Plaza daily.1.3 ProductsNano Energy water flasks can release charges to the wa ter with high amount of negative ions, which is good for our body. It can restore the waters PH level to the ideal level, which is 7.0 to 7.4. Thus, it will change the water to alkaline water which benefit to health. The Nanotechnology breaks down water molecule into smaller possible size so that they are more easily absorbed by the body.Therefore, the taste of the water is smoother, sweeter and easily absorbed by our body cell as osmosis may occur easily. Drinking energized water regularly also kept us away from suffering different kind of health diseases. Moreover, the energized water penetrates deep into the body cells more easily, transfers nutrients to the body more efficient and takes away un-useful product from our body system, thus making us strong and healthy.1.4 Sales and PromotionPromotion of the business will take place using a variety of methods, including advertising through distributing flyers from school to school, making banner, emails and telephone ordering. We wil l pay a few workers to distribute flyers from one place to another place. For examples, Curtin University and always all the secondary school in Miri, Sibu and Kuching.1.5 FinanceCEC Trading is a self-funding company as the initial shareholdings of RM 8000 will be injected by the major shareholder of the company (Vivian Ngu), and RM 5000 by other shareholders (Damilola, Faiznur Dilan, Wong Wen Yi and Wong Soon Siong). The company estimating the business will always show a positive value of cash surplus in every month for the first year of the operation. The company will not apply for any form of loans from outside party including bank in the first year of the operation.2.0 BACKGROUND2.1 Mission StatementCEC Trading Ltd. is not only aim to be one of the well-known Nano Energy water flasks traders in Malaysia but also aim to be the best water flasks trader in Malaysia. We want our product which is the unique Nano Energy water flask known as the best water flask in Malaysia as it is a beneficial product and it is made up of good quality. As well as any other company, we also would like to gain profit as much as possible.In order to attain our missions, our company will focus to the followings1. The ProductOur good which is Nano Energy Water Flask is made with 304 stainless steel. There is a filter inside the water flask which will be builded up from 13 kinds of natural materials such as tourmaline, zeolites, manifanshi, nano silver powder, kaolin earth, rare earth, far infrared stone, muyu stone, clay and others. The combinations of different kind of natural resources are approved scientifically to give highest efficiency to the water.2. The EmployeesThe employees will be trained to do their own role efficiently. They will also be motivated by attending program which then they will produce better performance.3. The ConsumersWe are targeting adult as well as children and ageing people to consume our products since our product is available to any age. We would like to make sure that our customer satisfied with their purchases of the Nano Energy water flasks.For the capital, the amount capital needed to start the business is RM28,000. The amount of capital stated is needed to cover up all of the essential expenses that the business required to set up the business. The sum of capital that stated above is also needed to achieve a positive cash surplus in the first month.2.2 Company HistoryThis is a new business which all started from the observation that we, the shareholders made. We had a discussion and came up with an idea of selling water flasks. The water flasks that our company planning to sell are water flasks with special features and benefits, which are the Nano Energy water flasks. This water flasks release charges of negative ions to the water and it is good for our health. In addition, the reason we chose to sell Nano Energy water flasks is due to the high demand of health products which needs a huge amount of money. On the other hand , we can also save the environment by reducing the use of plastic water bottle. Thus, by combining both of these situations, this company is set up. Furthermore, customers will not have to spend lots of money for their health products instead they can buy the Nano Energy water flasks which only cost them MYR 28.2.3 Business GoalsThe short-term goal of this company is to employ at least 5 persons full time on a salary of approximately MYR 4,900 per month. Our company planned to run our business within Sarawak for a start. The Nano Energy water flasks will be distributed to a few parts of Sarawak which are Miri (the main place of our business), Sibu and also Kuching. Furthermore, our company targeted to sell about 10500 water flasks in a year, which would probably increasing in the following month and gain a net profit at least MYR 65,200 for future investments.For the long term goal, our company wanted to expand the company into a bigger company by selling the Nano Energy water flask s to West Malaysia and Sabah. This is because we want to widen our market range and we would like to gain more profit. In order to achieve our long- term goal, we will analyse our weaknesses and strive to improve our business strategies.3.0 MARKETCEC company is a trading company that buy product from a manufacturer (whole sellers) then sell to retailers which is to the shop we decided to sell our products. Then we sell our product to consumers. The new product we are introducing into the market is a product from Vuitton Silver Manufacturing Company that sells different types of water flask in Malaysia such as Vacuum water flask and Nano Energy water flask. The product we are introducing is Nano Energy water flask which helps to charge water with high amount of negative ion which are absorb by the body. Due to the fact that more than half of our body consists of water, water is an important element which is needed by everyone. Thus it is important that we consume healthy water daily. Nano Energy water flask can change the water ph level to be alkaline. Other than that, it can also breaks down water molecule into smaller size which then can be easily consume and the taste will be sweet and smooth. Furthermore, alkaline water can build up better immune body system thus prevent us from easily infected by diseases. For further information, drinking this energized water often also enhance our bodys metabolism and can concern about our beauty. However, the most important key point in drinking this energized water is keep us away from all kind of diseases. Due to the fact that our warehouse is in the state of Miri, Sarawak, our product can be found in Parkson which is in Sibu, Miri and Kuching. This water flask can be use by children as well as adult.3.1 Market AnalysisDue to the research carried out by the CEC Company, we found out that there is a lot of water flask that were on the market, but their functions are only to keep warm or keep cold. Thus, our company dec ided to do trading on a new type of water flask, which is for consumers health purpose. Another thing that the business concern about is about environmental friendly.3.2 SeasonalityThe major of our sales revenues are in February to November. This is because there are no long holidays or school holidays. Thus, the customers might saw the advertisement for our product and purchased them. In the other hand, due to the holiday season such as Celebration or summer break periods, the people might be going out for vacation thus will decrease our sales revenues.3.3 CompetitorsThere are lots of competitors in the market who have products that perform same function with our product Nano Energy water flask, some of the companies are listed belowI. ENCHANCE PLASTIC INDUSTRY SDN BHD, MALAYSIAII. TAIZHUU GANGLUNG PLASTIC CO.LTDIII. KSK GLOBALINK MANUFACTURING SDN BHDIV. ELLEDI (M)SDN BHDV. ZHEJIANG TYSESO INDUSTRY TRADE CO.LTD.VI. YONGKANG SHIQIANG HARDWARE PLASTIC CO.LTD3.4 Market OverviewThe major target market of CEC Company is student, workers, athletes and the public in general. Nano Energy water flask produces storages where you can store your water to drink anytime which is tasty. Our product is convenient, easy and collectable, it is also attractive to the eyes as it will be in three colors silver, red and black which makes the demand for the product higher because it is also affordable in terms of price. Other than that, we also provided telephone ordering for customers need.3.5 SWOT AnalysisWe carried out an analysis on the market situation on our product with the use of SWOT analysis, which we make improvement in our business. SWOT Analysis represents the strength, weakness, opportunities and threats of the business. Through SWOT Analysis, it can guide the company to work on our weakness and threats where as maintain our performance regarding the strength and opportunities(citation business management).STRENGTHThe strength is an initial factor which increases value for our business. The strength of nano energy water flask is to have been strong enough to get them a higher place in the labor market even with various imitations from other competitors who are in the market or wants to come into the market with similar products. It can be measured using internal assessment.Quality of the brandStrategic locationSustainability of the productHealth careLight weigh of the productWEAKNESSWeakness is also an internal factor that decreases the value of the business. We need to analyze our company weaknesses so that we can make improvement based on them.Lack of marketing skillLack of workersLimited budgetLack of advertisementConsistency of supplierOPPORTUNITIESOpportunities are external factors that add value in the business. The business needs strategies to perform better performance.Expose our products in other countriesSpecial promotion during special eventsImprove the skills of workersTHREATSThreats are the external factors that decrease the val ue in the business. The business need to be aware of the threats that may be occurred.Existence of substitute goods in the marketDelayed of the products due to the transportation problems3.6 MARKETING PLAN3.6.1 Production/ Service Target MarketThe 2 main targets of doing this business are to improve the healthiness of consumers and to concern about the environment. Nano Energy water flask is a good product which helps to transform the water into alkaline water which is good for health. It is also convenient in the aspect of shape and size which makes it very easy to be carried around by anyone who needs a flask to store their water to take to either school or workplace and even to sport arenas. It is a stainless steel bottle which makes it more attractive and presentable. The fact that it is a stainless steel does not mean it going to get rust easily. On the other hand, since the product is made of stainless steel, it can be used for at least one year. Thus, we can be environmental friendly by saving the consumption of plastic water bottle.3.6.2 PlaceAlthough the business is doing trading to Miri, Sibu and Kuching, our main business is in Miri. Nano Energy water flask is classified to be a household product, thus it can be found in Parkson, in the department where they sell household products. We also need a warehouse to store all our products.3.6.3 PriceVuitton Silver Company supply Nano Energy water flask to the business with the cost of RM15 each. This cost will be derived after the deduction of all the money use in the production of the flask, such as buying of the machinery, steels, wages of employees, vehicle for distribution, insurance, rents and other expenses. After doing the analysis, our company tends to charge RM 28 for the product which can provide profits on every sales and this price can be afforded by customers.3.6.4 Promotion and AdvertisementOur company tends to alert the general public about nano energy water flask through various means in o ther for them to know about the product. A research was done on the strategies needed to promote the product in the market. As a result, we made use of the following promotional tools in the business.fliers and handbillsposters and bannersemails and telephone contact3.7 Evaluation of MarketCEC Company carried out an evaluation on the market, using the market strategy which is carried out at the end of every year to analyze the sales data of Nano Energy water flask to see it performances in the aspect of the quantity that has been sold and as well as profits made. Based on the cash flow forecast, we have cash surplus of RM 65,200 during the year. This proved that the promotions and sales have been done effectively.4.0 OPERATIONS4.1 Legal and Licensing Requirements(a) Business name and legal structureCEC Trading Ltd is a proprietary limited company. The company structure has already been registered and start up with five shareholdersVivian Ngu Yen Shya (25% shareholding)Wong Wen Yi (1 8.75% shareholding)Faiznur Dilan binti David Ismadi (18.75% shareholding)Damilola (18.75% shareholding)Wong Soon Siong (18.75% shareholding)Who also serve as the directors of the entity.(b) Operating laws and licensesThe business needed a license to run the business legally.4.2 Management DetailsThe managing director of the company will beVivian Ngu Yen ShyaHome address 175, Phase 2C1, Desa Senadin, 98000 Miri, Sarawak, Malaysia Ph (085) 656578 Fax (085) 656579Date of birth 25 November 1991Qualifications Bachelor of Business (Double Major in Finance and Management)Experience Management and Financial Advisors and owner of Wealth SpringConsultancies 1997 20034.3 Organizational Structure and StaffingMost of the job of the business will mainly be done by general manager. A warehouse is needed to store our products. General manager, sales manager and accountant will mainly be working in the warehouse. On the other hand, 3 marketing expertise and 2 drivers are needed in doing sales and a lso deliverance.General manager The duty of a general manager are to manage all business plans and the performance of the employees. Salary RM 1000 Sales manager* The duty of a sales manager is to deal and communicate with the owner of parkson in order to know the amount of sales revenue.* Salary RM 700 Accountant* The duty of accountant is to record the business transactions, summarizing and analyzing to produce financial statement in the end of the period.* Salary RM 700 Sales advisor* The duty of sales advisor is to approach customers and advise them to buy our product.* Salary RM 500 Driver* The duty of driver is to deliver the products to the destination and also help to transfer the products to the sales department.* Salary RM5004.4 Professional AdvisersAccountantSunlight Accountants55, Sunshine Park, Tun Hussein Onn Road, 98000 Miri, Sarawak, MalaysiaPh (085) 668 132 Fax (085) 668 133LawyerJohn Smith28, Fortune Park, Desa Damai Road, 98000 Miri, Sarawak, MalaysiaPh (085) 636 732 Fax (085) 636 735Insurance brokerBank accountMay Bank Malasyia279, Bank Street, Pujut Road, 98000 Miri, Sarawak, MalaysiaManager Angeline TanPh (085) 678 588 Fax (085) 678 5794.5 Business PremisesLocationCEC Trading Ltd will acquire a business premise as an office which deals with the paperwork and also warehouse as the storage for stocks and equipments. The ideal location would be located at shop lot where we can store and sell the stock. The premise will be located at Shop Lot 608, Medan Commercial Centre, 98007 Miri, Sarawak, Malaysia. The price tag for renting the shop lot will be RM 1,500 per month. The shop lot will be repairing and do some painting. The goods that we sell will be distributed to the hypermarket, Parkson in Miri, Sibu and Kuching.4.6 Equipments RequiredThe equipments that required for the business will be Computers Printers Scanners Internet connections Fax machines Telephones Furniture (table, chair, shelves)The above equipments are some of the basic needs to run the daily business operation. The equipments required will change from time to time.4.7 Production ProcessesOur company will get the stock from the supplier, Vuitton Silver. The estimated amount around 1000 of Nano Energy water flasks will be order from the supplier every month. Therefore, all the stocks will be store in the warehouse. Then, the workers will distribute some of the stock to Parkson. The working hour is from 8am to 5pm every day except on public holidays.There are different types of color of the water flask will be sold such as silver, black and red. The product will be sold at RM28 each for every types of color. The selling price is enough to cover all the expenses as the cost price of each water flask is RM 12. It is a reasonable price as these Nano Energy water flask is good for health and can solve the skin problems.However, the office is used as a place for the process of paperwork and storage of documents and equipments. The ordering of our company products and all the documents and accounts will be recorded down and will be kept. All the works in the office work will be done by the clerk and supervise by the manager.4.8 Critical risks/Contingency PlansCEC Trading Ltd will organize training program to all staff members for professionalism in running the business and also for contingency plans. The training will be on how they going to promote and sell the water flask.Insurance will be bought for business premises. The aim is to recover some assets in case of any accidents such as fires, accidents and thefts as well. Those liability and car accident will be covered by the professional indemnity insurance. The injury to the managing director will be covered by workers compensation.5.0 FINANCIAL PROJECTIONS5.1 Basic Assumptions and Information(a) Calculation of income and expensesExpenses are calculated based on research and managements knowledge of costs. Income or sales revenue is assumed to be paid within the month issued. The impact of inflation or increases costs is not taking into consideration.Depreciation of equipments purchased and vehicle purchased in June 2010 is calculated using straight-line method, at 10% per annum. Gross cost of goods is RM 168,000. Drawing is RM 200 per month. The projection is for one year and the figures are in Ringgit Malaysia.(b) Financing of the businessAn investment of RM 28,000 will be invested into the business according to our shareholdings Vivian Ngu Yen Shya RM 8,000, Wong Soon Siong RM 5,000, Wong Wen Yi RM 5,000, Faiznur Dilan binti David Ismadi RM 5,000 and Damilola RM 5,000. Sales income for June is based on early promotions, thus providing initial cash surplus and avoid the need for any short term debt financing. The operation financing strategy is showing a cash surplus in the bank accounts with total amounts of RM 70,700. The business will open a cheque account that provides electronic funds transfer facilities for customers. A minimum of two shareholder d irectors is needed to sign all the cheques for security reasons.(c) Distribution of profitsProfits in the first year will be retained in the business. In future years, three quarters of the annual net profit after tax will be paid to the directors at the end of the financial year according to their shareholding and the remaining quarter will be kept as retained earnings.The Sales Mix Forecast, Cash Flow Forecast and The Trading Profit and Loss Statement is prepared according to generally acceptable accounting principles and conventions.(d) Goods and services taxAll forecasts are net of tax.(e) LoansThe firm has no current loans or debts.5.2 Analysis of Financial Forecasts(a) Net profit margin is used to measure the companys ability to earn a net income from sales.The net profit margin is calculated based on the first year of the projections.Net profit margin % = = = 22.18%Since this trading company is running the business for the first year, it is normal to get a relatively low figu res of the margin. The margin is expected to increase in the next few years.Other than that, the company can use other ratios to do analysis on the financial statements in the coming years.(b) Break-even pointContribution margin is used to determine the amount of profit that is made towards payment of the fixed cost. Considered that cost of goods sold is the variable cost, the contribution margin is equal to sales minus variable costs.Gross profit margin = = = 57.14%The fixed cost is projected to be RM 102,800.Break-even point in value = == RM 180, 350.88Accounting 062 May 28, 20105.2.1 Sales mix forecast5.2.2 Cash flow forecastCECCASH FLOW FORECASTfor the period July 2010 to June 2011JuneJulyAugustSept.Oct.Nov.Dec.Jan.Feb.MarchAprilMayTOTALIncomeSales revenueRM 12,600RM 19,600RM 22,400RM 22,400RM 22,400RM 16,800RM 19,600RM 28,000RM 30,800RM 32,200RM 32,200RM 35,000RM 294,000Capital28,00028,000Total income40,60019,60022,40022,40022,40016,80019,60028,00030,80032,20032,20035,000RM322, 000