BSEM Program
Bedugul Green Fresh Mart
By:
Umi Nur Cholifah
&
Executive Summary of BGFM
Vision:
1)
To be a vegetable supplier and determined to develop a
business in systematic and planned into a formidable company
and position themselves strategically in the business of trade
and production in agriculture.
2)
Raised the value of selling local farm produce International.
Mission:
1) Strive to increase the quality of service and production to match the high
standards that can fulfill consumer demand.
2) Continually improve guidance to customers in order as business partner.
3) And expanding network of infinite market.
Objective:
1) Management based on the principles of efficient and effective, so as top and a
high income to develop the business and improve the welfare of employees.
2) Improve the quality of human resources in accordance with the culture and the
culture of the company, so it can deliver a high work ethic and sense of creative.
Goals:
1) Government programs to help create a healthy society by providing fresh
vegetables and hygienic.
2) Provide our customers with high quality product and excellent service at the
reasonable price.
Project Background
The Meaning of this name is supplied we
started this business from Bedugul area as the
Largest vegetables producting in Bali which
become the main supplier of vegetables at the
same time supporting us.
The Green Fresh Mart has the intention that we
are the supplier of fresh vegetables.
Our project will be located at Bay Pass Ngurah
Management Feasibility
BGFM
apply the Six Sigma System to support running the
business.
DMAIC:(Define, Measure, Analyze, Improve, & Control)
There are three major groups in which each held by our
members:
1.
Sri Weni: Responsible in the division of Define and Measure
system.
2.
Umi Nur Cholifah: Responsible in the division of Analyze
system and Improve.
Marketing Feasibili
ty
We will give examples for free as a way to
promote our products to consumers in addition
to promoting products through the current
growing media .
We will also continue to maintain good
relationships and communicate with all
consumers.
We noticed is that will attempt delivery of
products to consumers in order to quickly and
no defects.
Our marketing system that will be run to start
Production Feasibility
Our products which we seek is the result of a
local farm where the farmer is still relatively little
use of modern methods.
The advantages of our products is to be the sole
Financing and Financial Feasibility
Total of our Capital is HK$ 450,000.00
67.00% 33.00%
Social & Economic Feasibility
With a concept~~~~Corporate Social
Resposibility.
As a company we have a responsibility to the
various forms of the entire user interests
include consumers, employees, shareholders,
communities and the environment in all
aspects of company operations that Include :
Social, economic, and environment.
SWOT Analysis
STRENGTH:
1. Organic vegetables have a sweeter taste compared to non-organic
vegetables.
2. Organic vegetables have a higher sale value (more expensive) compared to non-organic.
3. Can be a source of food that is safe and nutritious as it contains no toxins to be able to improve public health.
4. Organic vegetables containing
Vitamin C, Potassium, and higher Beta Carotene.
STRENGTH:
1. Organic vegetables have a sweeter taste compared to non-organic
vegetables.
2. Organic vegetables have a higher sale value (more expensive) compared to non-organic.
3. Can be a source of food that is safe and nutritious as it contains no toxins to be able to improve public health.
4. Organic vegetables containing
Vitamin C, Potassium, and higher Beta Carotene.
WEAKNESSES:
1. Organic vegetables look less attractive, such as smaller size and the leaves with holes.
2. Prices are quite expensive
3. Results products organic vegetables is lower than in conventional vegetables. WEAKNESSES:
1. Organic vegetables look less attractive, such as smaller size and the leaves with holes.
2. Prices are quite expensive
3. Results products organic vegetables is lower than in conventional vegetables.
OPPORTUNITIES:
1. Has a very good prospect because it can support capital from foreign investors. 2. Eventually the whole world will drive the economy into the concept of the Green Economy as a concept that will support sustainable development. ( Consept Economy , Davit Darmawan, 2009) OPPORTUNITIES:
1. Has a very good prospect because it can support capital from foreign investors. 2. Eventually the whole world will drive the economy into the concept of the Green Economy as a concept that will support sustainable development. ( Consept Economy , Davit Darmawan, 2009)
THREAT:
1. Low organic vegetable production makes little supply shortage.
2. Constraint is the least fertile land area. 3. Products of high quality and has a market segment, the top layer of society. 4. Prices are set much higher than conventional agricultural products.
5. Companies can not charge a higher price compared to competitors.
THREAT:
1. Low organic vegetable production makes little supply shortage.
2. Constraint is the least fertile land area. 3. Products of high quality and has a market segment, the top layer of society. 4. Prices are set much higher than conventional agricultural products.
SWOT Position
y (Opportunity)
X(Weakness)
x(Strength)
III
II
y(Threat)
4,5
3,5
I
IV
SWOT Position is in
Quadrant I it is mean
strategy of our
company available to
use for marketing are
SWOT Analysis of Main Competitor
Strength
Weakness
1. Popularly
2. Brand
Awareness
3. Large Offer
4. Good Packing
5. Good Quality
6. Many of
Weight Rating ( Scale=1-5; 1- Poor, 5-Excellent
Must total
100% BGFM RFT BOA BROF WM
Customer Awareness 20% 4,0 4,0 5,0 3,0 3,0
Product Quality 40% 5,0 3,0 5,0 3,0 3,0
Product Availability 25% 4,0 4,0 5,0 4,0 3,0
Technical Assistance 5% 3,0 4,0 4,0 3,0 1,0
Selling Staff 10% 4,0 4,0 4,0 2,5 2,0
Total 100% 20,0 19,0 23 18,5 12,0
Competitive Advantage
Service
Service
Quality Product
Quality Product
Promotion
Promotion
Efford able Price
Efford able Price
Large selection of product
Brand Positioning Chart
Quality Design Price Service Warrant Credibility 0
10 20 30 40 50 60 70 80 90
Distribution Flow
Distribution Channel
•
Carrefour Bali
•
Makro Bali
Supermarket
•
Surya Husada Hospital
•
Balimed hospital
Hospital
• gateway of India Authentic Indian Food • Harmony Vegetarian
• The Oberoi
Restaurant
•
The Royal Beach Seminyak
•
Devine Earth Bali
Product Benefit
Organic Produce contains fewer pesticides
Organic food is often fresher.
Organic farming is better for the environment.
Organically raised animals are not given antibiotics,
growth harmonic, or fed animal by products.
Capital and Contribution
No
Category
Total(HK$)
1
Building and Transportation
208,195
2
Machine & Equipment
18,720
3
Other civil work
16,145
4
Pre Operating Expenses
206,940
Total Project Cost
450,000
No
Category
Debit(equity)
Contribution
%
1
Umi Nur Cholifah
160,000
53
2
Sri Weni
140,000
47
Capital and Loan
Category
Percentage
Amount
Share/ Capital
67
300,000
Loan
33
150,000
Machine and Equipment
No Machine & Equipment
Price(H
K$)
Unit
(HK$)
Total
1
Packing Press Machine
2,000
1
2,000
2
Labeling Machine
500
2
1,000
3
Numbering/Code
350
2
700
4
Calculator
70
2
140
5
Packing Box
90
9
810
6
Refrigerator
5,500
1
5,500
7
Basket
50
9
450
8
Knife
10
4
40
9
Scissors
10
4
40
10
Cutter
10
4
40
11
Table
750
2
1,500
12
Scales
1,000
2
2,000
13
Air Condition
4,500
1
4,500
Materials
No
Items
(HK$)
Price
(HK$)
Daily
Monthly
(HK$)
Yearly
(HK$)
1
Spinach
$20 x20 kg
400
12,000
144,000
2
Green Cabbage
$21 x 30 kg
630
18,900
226,800
3
Kale
$10 x 25 kg
250
7,500
90,000
4
Cucumber
$20 x 20 kg
400
12,000
144,000
5
Salary
$16 x 10 kg
160
4,800
57,600
6
Cassava Leaves
$18 x 15 kg
270
8,100
97,200
7
Bitter Cucumber
$8 x 13 kg
104
3,120
37,440
8
Cabbage
$8 x 20 kg
160
4,800
57,600
9
Bok Choy
$15 x 15 kg
225
6,750
81,000
10
Beans
$8 x 15 kg
120
3,600
43,200
11
Plastic Wrapping
$10 x 1 Roll
10
300
3,600
12
Rubber Band
$10
10
300
3,600
13
Plastic Bag
$10 x 1 Pack
10
300
3,600
14
Other
$100
100
3,000
36,000
Direct & Indirect Labour Salary
No
Category
Person in
Charge
Monthly
(HK$)
Yearly
(HK$)
1
Head Production & QC
1
1,000
12,000
2
PPC & Designer Product
1
1,000
12,000
3
Sales
1
792
9,500
4
Expedition
1
792
9,500
5
Workers @750 x 4
4
3,000
36,000
Total Direct Labor Salary
8
6,600
79,000
No
Category
Monthly
Yearly
1
General Manager
3,000
36,000
2
Production & HRD Manager
2,000
24,000
3
Marketing & Financial Manager
2,000
24,000
Office Depreciation
No
Category
Unit
(HK$)
Price
(HK$)
Cost
Expected
Life
Depreciation
(HK$)
1
Computer
3
3,200
9600
5
1,123
2
Photo Copy
1
350
350
5
41
3
Type Writer
1
450
450
5
53
4
Telephone
1
425
425
7
50
5
Table
3
1,000
3000
7
351
6
Chair
9
100
900
5
105
7
Locker
1
850
850
7
100
8
Water Dispenser
1
350
350
3
41
9
Rabbis Bin
1
70
70
3
8
10
Calculator
3
50
150
5
18
Factory Depreciation
No
&Equipment
Machine
(HK$)
Price
Unit
(HK)
Total
Expected
Life
Depreciation
(HK$)
1
Packing Press
Machine
1,500
1
1,500
5
176
2
Labeling
175
2
350
5
41
3
Numbering
Machine
175
2
350
5
41
4
Calculator
50
2
100
5
12
5
Packing Box
40
9
360
2
42
6
Refrigerator
2,000
1
2,000
7
234
7
Backed
75
9
675
2
79
8
Knifes
10
4
40
5
5
9
scissors
10
4
40
5
5
10
Cutter
10
4
40
2
5
11
Tables
100
2
200
7
23
12
Scales
450
2
900
5
105
13
Air condition
1,500
1
1,500
5
176
Projected Sales
No
Items
Kg
(HK$)
Price
(HK$)
Daily
Monthly
(HK$)
Yearly
(HK$)
1
Spinach
18
35
630
18,900
266,800
2
Green Cabbage
28
36
1,008
30,240
362,880
3
Kale
18
18
324
9,720
116,640
4
Cucumber
10
35
350
10,500
126,000
5
Salary
13
30
390
11,700
140,400
6
Cassava Leaves
18
32
576
17,280
207,360
7
Bitter Cucumber
13
18
234
7,020
84,240
8
Broccoli
18
18
324
9,720
116,640
9
Bok Choy
12
25
300
9,000
108,000
10
Beans
13
18
234
7,020
84,240
Amortization & Operating Expenses
Amortization
Operating Expenses
Year
Loan
Expense
Interest
Principle Loan
Payment of
Amortization
Total
0
150,000
0
0
0
1
127,680
22,500
22,320
44,820
2
102,012
19,152
25,668
44,820
3
72,494
15,302
29,518
44,820
4
38,548
10,874
33,946
44,820
5
0
5,782
39,038
44,820
Items
Monthly(HK$)
Yearly(HK$)
Salaries (Indirect Labor )
7,000
84,000
Rent
1,500
18,000
Utilities
300
3,600
Telephone
500
6,000
Promotion
500
6,000
Depreciation
1,890
Insurance
250
3,000
Office Supplies
250
3,000
Factory Overhead & Pre Operation
Expenses
Factory Overhead
Pre Operating Expenses
Items
Monthly(HK$
)
Yearly(HK$)
Water
300
3,600
Maintenance
350
4,200
Electricity
450
5,400
Depreciation Machine &
Equipment
944
Total
1,100
14,144
Category
Monthly(HK$)
Materials
85,470
Salary Direct Labor
6,600
Factory Overhead Cost
1,100
Operation Cost
10,300
Cash Flow for Pre Operating
Expenses
Month
1
2
3
4
5
Cash In
165,660 165,660 165,660
165,660
Cash out
103,470 103,470 103,470 103,470
103,470
Net Cash
-103,470
62,190
62,190
62,190
62,190
Cost of Good Sold
Year 1 Year 2 Year 3 Year 4 Year 5 Direct Material Used
Purchase, January 1,025,640 1,076,922 1,130,768 1,187,306 1,246,671
Total Available for Uses 1,025,640 1,076,922 1,130,768 1,187,306 1,246,671
Less: Material Inventory 51,282 53,846 56,538 59,365
Direct Material Used 1,025,640 1,025,640 1,076,922 1,130,768 1,187,306
Direct Labor 79,000 82,950 87,096 91,451 96,024
Factory Overhead 14,144 14,851 15,594 16,374 17,193
Total
Manufacturing Cost 1,118,784 1,123,441 1,179,612 1,238,593 1,300,523
Add: Work In Process,
January 55,939 56,172 58,981 61,930
Cost of Goods Put Into
Process 1,118,784 1,179,380 1,235,780 1,297,574 1,362,453
Less: Work In Process,
December 55,939 58,969 61,789 64,879
Cost of Goods
Manufacturing 1,118,784 1,123,441 1,176,811 1,235,785 1,297,574
Add: Finish Goods,
January 55,939 56,172 58,841 61,789
Total Goods Available
for Sale 1,118,784 1,179,380 1,232,987 1,294,626 1,359,363
Less: Finish Goods, 55,939 58,969 61,649 64,731
Projected Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Projected Sales 1,573,200 1,651,860 1,734,453 1,821,176 1,912,235 Less: Cost Goods Sold 1,118,784 1,123,441 1,174,018 1,232,977 1,294,632
Gross Profit 454,416 528,419 560,435 588,199 617,603
Operating Expenses Salaries (Indirect
Labor) 84,000 92,400 101,640 111,804 122,984
Rent 18,000 19,800 21,780 23,958 26,354
Utilities 3,600 3,960 4,356 4,792 5,271
Telephone 6,000 6,600 7,260 7,986 8,785
Promotion 6,000 6,600 7,260 7,986 8,785
Depreciation 1,890 2,079 2,287 2,516 2,768
Insurance 3,000 3,300 3,630 3,993 4,392
Office Supplies 3,000 3,300 3,630 3,993 4,392
Interest Rate 22,500 19,152 15,302 10,874 5,782 Total Operating
Expenses 147,990 157,191 167,145 177,902 189,514
Net Profit Before Tax 306,426 371,228 393,290 410,290 428,089 Tax (5%) 15,321 18,561 19,665 20,515 21,405
Net Profit 291,105 352,667 373,625 389,782 406,684
Net Profit Chart
1
2
3
4
5
291,105
352,667
373,625
Cash Flows
Year 0 Year 1 Year2 Year 3 Year 4 Year 5 In Flow
Loan 150,000
Capital 300,000
Net Profit+ Depreciation 293,939 355,737 376,953 393,391 410,600
Total In flow 450,000 293,939 355,737 376,953 393,391 410,600
Out Flow
Building &Transport 208,195
Machine & Equipment 18,720
Other Civil Work 16,145
Payment of Principle
Loan 22,320 25,668 29,518 33,946 39,038
Pre Operating Expenses 206,940
Total Out Flow 450,000 22,320 25,668 29,518 33,946 39,038
Net Cash In Flow-Out
Flow 0 271,619 330,069 347,435 359,445 371,562
Cash Balance Beginning 0 271,619 601,688 949,123 1,308,568
Cash Balance End 0 271,619 601,688 949,123 1,308,568 1,680,130
Annual Cash Flow 271,619 330,069 347,435 359,445 371,562
Average Cash Flow 336,026
Break Event Point
Percentage Projection of Sales
Product Code Daily Kg Percentage
BY 18 11%
Total 161 100%
Year 1 Year 2 Year 3 Year 4 Year 5 Sales 1,573,200 1,651,860 1,734,453 1,821,176 1,912,235
Fixed Cost 103,470 113,817 125,199 133,719 147,491
Variable Cost 1,118,784 1,123,441 1,174,018 1,232,977 1,294,632
Contribution Margin
Ratio 0.3 0.3 0.3 0.3 0.3 BEP-Sales 344,900 379,390 417,330 445,730 491,637
BEP – Unit Each Product
Product Code
Year 1 Year 2 Year 3
Year 4
Year 5
BY
144
158
174
185
204
SW
235
259
284
303
334
CC
144
158
174
185
204
TM
86
87
102
110
121
S1
105
116
125
134
148
DS
144
158
174
185
204
PR
86
116
125
134
148
BK
144
158
174
185
204
BC
989
108
118
127
140
BE
105
116
125
134
148
Balance Sheet
Total Current Asset 271,619 764,840 1,120,907 1,488,684 1,869,105
Non Current Asset
Building & Transport 208,195 208,195 208,195 208,195 208,195
Machine & Equipment 18,720 18,720 18,720 18,720 18,720
Other Civil Work 16,145 16,145 16,145 16,145 16,145
Less: Accumulated
Depreciation 2,834 3,070 3,328 3,609 3,916
Total Non Current Asset 245,894 246,130 246,388 246,669 246,976
Total Asset 517,513 1,010,970 1,367,295 1,735,353 2,116,081
Liabilities
Account Payable 127,680 102,012 72,494 38,548
-Total Liabilities 127,680 102,012 72,494 38,548
Capital
Capital Beginning 98,728 556,291 921,176 1,307,023 1,709,941
Net Income 291,105 352,667 373,625 389,782 406,680
Capital at the end of the
year 389,833 908,958 1,294,801 1,696,805 2,116,621
Pay Back Period & Internal Rate in
Return
Pay Back Period
Internal Rate in Return.
Year FlowOut
In Flow Net Cash
Flow (NCF)
Cumulative Net Cash Flow
Net Profit Depreciation
0 450,000 0 -450,000
1 22,320 291,105 2,834 271,619 -178,381 2 25,668 351,667 3,070 330,069 151,688 3 29,518 373,625 3,328 347,435 499,123 4 33,946 389,782 3,609 359,445 858,568 5 39,038 406,684 3,916 371,562 1,230,130
Year FlowOut
Net Profit Depreciation 18% 30%
0 450000 (450000) (450000) (450000)
1 22320 291105 2834 271619 230186 209147
2 25668 352667 3070 330069 237650 194741
3 29518 373625 3328 347435 211935 159820
4 33946 389782 3609 359445 186911 125806
Net Present Value & Profitability/Benefit
Cost Ratio
Net Present Value
Profitability Index/Benefit Cost Ratio
NPV : 977,113
Total Project: 450,000
PI : 2,17
Year Net Cash Flow Factor of PV Present Value
1 271619 0.833 226259
2 330069 0.694 229068
3 347435 0.579 201165
4 359445 0.482 173253
5 371562 0.402 147368
NPV 977113
Analyze Project Feasible PI > 1
Feasibility Analysis
Gross Profit Margin : 29%
Return on Sales : 20%
IRR : 26%
MARR : 20%
ROR : 1 = 20%
Pay Back Period : 9 Months
Current Ratio :2,13
Quick Ratio : 1
Cash Ratio :2,127
Interest Coverage Ratio : 20,2 Times
Inventory Turnover : 21 Times
Net Profit Margin : 2%
Return on Investment : 88%
Return on Equity : 64%
Other Beneficiary
BGFM will accommodate vegetables from the farmers to be
processed into organic fertilizer and will be re-distributed to
farmer BGFM, With price affordable and very cheap.
Project Time Table
Activities Dec 2014
1.Analyse the type of business and draft
2. Prepare the feasibility study for the project. 3.Prepare Company Legal Registration.
4.Negotiation with farmers, Lobbying potential customers, and the owner of the land to the place of project.
5.Determination, Management, Engineering, and Marketing Contract.
6.Arrangement for management ; Selection, Recruitment, and Training of Staff.
7. Arrangement for operation Preparing ; Construction, Installation of land, Building, Machineries, and the Equipment.
8. Arrangement for marketing ; Advertising, and Promotion.
9.Opening and project starts.
