SENIA ORGANIC FOOD

A project Feasibility Study

Presented to
The Faculty of School of Business

SAINT MARY’S UNIVERSITY

Bayombong, Nueva Vizcaya, PHILIPPINES
In Partial Fulfillment
of the Requirement for the Degree

Bachelor of Science in Entrepreneurial

Management
By

Nur Piatin

Naning Candra Kurnia

Retnaning Aristanti

March ,2011

Table of Contents
Chapter 1 The Executive Summary 8

1.1. Vision 8
1.2. Mission 8
1.3. Objectives
1.4. Goal 8
1.5. High light 8
1.5.1. Project Background 8
1.5.2. Management and Personnel Feasibility Summary 9
1.5.3. Marketing Feasibility Summary 9
1.5.4. Production or Technical Feasibility Summary 9
1.5.5. Financing and Financial Feasibility Summary 10
1.5.6. Social and Economic Feasibility Summary 10
1.5.7. Project Implementation and Time table 10
1.5.8. Conclusion to Feasibility 11
1.5.9. Income Statement 11
1.5.10. Break Event Point 11
1.5.11. SWOT 11

Chapter 2 Project Background 13

2.1. Project Proponents 13

2.2. Proposed Name of the Business 13
2.3. Type of Business Organization 13
2.4. Location of Head Office and Factory 14

Chapter3 Management and Personal Feasibility 15

3.1. Personnel (administrative) 15

3.1.1. Proposed Salary of Personnel 16
3.1.2. Management Personnel 17
3.2. Management Proposal 18
3.2.1. Management Style 18
3.3. SWOT Analysis 18

Chapter 4 Marketing Feasibility 22

4.1. General Marketing Description 22

4.2. Target Market 24
4.2.1. Market Analysis 24
4.2.2. Mall Located in Malang 25
4.3. Demand Figure Data for the last Five Year 26 4.4.
Supply 27
4.5. General Marketing Practices 27

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 4.5.1. Competitive Edge 28
4.6. Proposed Marketing Program 30
4.6.1. Customer Service 33

Chapter 5 Production or Technical Feasibility 34

5.1. Type of organic food product 34
5.2. Quality pledge 35
5.3. Product 35
5.3.1. Kind of Product 36
5.4. Certifiers 38
5.5. Technological assistance 39
5.6. Project site Location 39
5.7. Project Layout 41
5.8. Floor Plan 41

Chapter 6 Financing Feasibility 42

6.1.Estimated Initial capital 42

Chapter 7 Financial Feasibility 44

7.1. Major Assumptions Cost 44
7.2. Table Investment and Depreciation 45
7.3. Credit Repayment Table 47
7.4. Cost of Good Sold 48
7.5. Income Statement 49
7.6. Cash Flow 50
7.7. balance Sheet 51
7.8. Break Event Point 52
7.9. Internal Rate of return 53

Chapter 8 Socio-Economic Feasibility 54

8.1. Your Project Employee’s (Personnel) 54

8.2. The Government 54
8.3. Other Beneficiaries 54

Chapter 9 Project Implementation and Timetable 55

9.1. Gantt – Chart of Activities 55

9.2. Budgeting Costs 56
9.3.Assignment of Activities 57
Chapter 10 Annexes and Other 58

APPROVAL SHEET

3
 In Partial Fulfillment of the Requirements for the course

Bachelor of Science in Entrepreneurial

Management

This study entitled

SENIA ORGANIC FOOD: A Feasibility study

Has been prepared and submitted by:

Nur Piatin

Naning Candra Kurnia

Retnaning Aristanti

Whose grade for the paper is__________

Accepted in partial fulfillment of the requirements for the Degree of

Bachelor of Science in Entrepreneurial Management

Introduction

4
Organic food is becoming more and more popular, as people look for ways to live a healthier,

pesticide-free, environmentally friendly, and sustainable lifestyle. Since the early 1990’s, the

interest in organic food has grown at a rate of 20% per year. Today, organic food is available in

most markets and grocery stores, and makes up about 3% of food sales in the worldwide.

Recent studies have shown clearly that people who switch to organic foods have much reduced

levels of pesticides in their bodies.

Organic produce tastes better, and it seems that better taste and greater freshness.

Acknowledge

5
We would like to say Alhamdulillah, for giving us the strength and health to do this project work

until it done. Not forgotten to our family for supported us and encouraged us to complete this

task so that We will not procrastinate in doing it.

Then we would like to thank our teacher, Mr Fajar Kurniawan for guiding us(team) and our

friends throughout this project. We had some difficulties in doing this task, but he taught us

patiently until we knew what to do. Also we had thanks to Theo Biyan for designed our

company’s logo.

To SMU-HK for offering the continuing education for us and being an instrument in opening

another door an opportunity of becoming an entrepreneur.

Last but not least, our dearest friends who were doing this project with us and sharing our ideas.

Without them this project would not be possible and fun to make.

CHAPTER 1 THE EXECUTIVE SUMMARY

6
1.1. VISION:

Senia Organic Food is a provider of a comfortable shop of chemical and preservative- free

groceries, cruelty- free body care and eco-friendly household products.

1.2. MISSION:

SENIA Organic Food is committed to providing the highest quality, fresh and natural food,

health and wellness products.

Educate and introduce a new and enlightened attitude toward healthy eating.

1.3. OBJECTIVES:

Provide our customers with the freshest, organically grown fruits and vegetables.

Offer foods without artificial colors, flavors, or additives.

Sell earth-friendly cleanses, pure, natural supplements and colors, flavor, or additives.

Support organic farm that keep our earth and water pure.

1.4. GOAL:

We will participate in community projects and host fund-raisers for local community services.

1.5. HIGHLIGHTS

1.5.1. PROJECT BACKGROUND

The name of our proposed project is SENIA ORGANIC FOOD.

The type our business as general partnership

Our project will be located at MATOS, Malang City, East Java province.

The proponents are Nur Piatin, Retnaning Aristanti, and Naning Candra Kurnia.

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1.5.2. MANAGEMENT AND PERSONNEL FEASIBILITY SUMMARY

Our management staff shall be composed of manager, admin/finance, Advertising/ promotion,

cashiers and produce/customer service staff. Nur Piatin will be responsible for manager and daily

operation. Naning Candra Kurnia will be responsible for Advertising/promotion and product

ordering, and Retnaning Aristanti will be responsible for stocking and book keeping. Also we

will be hired five persons as staff position (three person as customer service and two person as a

cashier). The person to be hired must conform to the qualities set forth and due to function in

accordance with their position. They shall be entitled to receive mandatory benefits, meeting,

trainings and seminars shall be conducted regularly.

1.5.3. MARKETING FEASIBILITY SUMMARY

The project general and specific market has been identified the present market and an analysis of

the past, present and future demand and supply situation of our products.

The general marketing practices and proposed program and projected sales for the next five

years.

1.5.4. PRODUCTION OR TECHNICAL FEASIBILITY SUMMARY

Our proposed products and services have been presented. The general partnership of SENIA

Organic Food shall lease a building structure and facilities shall be dealt within the lease

premises. Equipment and utilities shall be acquired to make the work of management and

customers comfortable, faster and efficient. Raw materials needed in our business as an

alternative is available locally. We use a recyclable bags as our responsibly with Environmental

Protection Department. Manpower requirements shall be accordance with the government

minimum requirements in operating our proposed project. The proposed business shall be open

8
six (6) days a week with ten working hours and a lunch break. Closed on Friday.

1.5.5. FINANCING AND FINANCIAL FEASIBILITY SUMMARY

The start-up cost of the SENIA Organic Food will consist primary of inventory and display

equipment. Nur Piatin, Retnaning Aristanti and Naning Candra Kurnia will invest

Rp.400.000.000,- They will also secure a Rp.100.000.000,- from bank.

1.5.6. SOCIAL & ECONOMIC FEASIBILITY SUMMARY

The proposed business can absolutely contribute to the municipality of our proposed location in

the form of taxes permits and license payments. Moreover, social responsibility consists of

obligations a business has to society.

To the environment, energy, community involvement and human resources.

1.5.7. PROJECT IMPLEMENTATION AND TIMETABLE

Assuming that the proposed project total operating time frame until the star of our normal

operations is six months.

1.5.8. CONCLUSION TO FEASIBILITY

We believe this proposed project is feasible and will operate soon

1.5.9. INCOME STATEMENT

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The projection of income, suggests that this effort in the first year had obtained a net profit of

Rp.26.825.939,20.

Total income during the project period (5 years) amounted to Rp.195.180.624,30 , so that the

average annual income of Rp.39.036.124,86

1.5.10. BREAK EVENT POINT

BEP in the sale of this business is worth Rp.447.979.475,-. While the average BEP production

units are 10.182

1.5.11. SWOT

We also use a SWOT analysis that is an identification of various both internal and external

factors which is systematically used for formulating the company strategy. The internal and

external factors resulted from the research on product ordering. Senia Organic food are obtained .

The Strength owned includes human resources availability both in quality and quantity, strategic

shop location, low cost spent and easy to obtain equipment relativity cheap and competitive

product selling price (for middle and upper class). All of our product are healthful which have a

local and international certificate of organic.

The Weaknesses are the product expensive than non-organic products, lack of marketing

expertise, only the middle and upper class can buy the product.

The Opportunity could be a developing market such as the internet, moving into new market

segment that offer improved profits, a new international market, a market vacated by an

ineffective competitor.

While, the available Threatens include the competitors who sell the same products, price wars

10
with competitors, and the competitors has a new innovative product or service.

CHAPTER 2 PROJECT BACKGROUND

________________________________________________

2.1. PROJECT PROPONENTS

Name Nationality Address % ownership

Nur Piatin Indonesian Madiun, East Java 30%
Retnaning Aristanti Indonesian Jombang, East Java 25%
Naning Candra K Indonesian Malang, East Java 25%
Bank - - 20%

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Nur Piatin, Retnaning Aristanti, and Naning Candra Kurnia are general partners because each

proponent invest and participate in running the business and is liable for all acts and debts of the

partnership and any member of it.

2.2. PROPOSED NAME OF THE BUSINESS

SENIA Organic Food is a day shop which provides the highest quality, fresh and natural food,

health and wellness organic products.

2.3. TYPE OF BUSINESS ORGANIZATION

The proposed project is general Partnership because each of the partners shares in the profit and

shares in the liability of the partnership including the losses.

2.4. LOCATION OF THE SHOP

Malang Town square /MATOS, Jl Veteran No. 5

Malang City,East Java province, Indonesia.

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 CHAPTER 3 MANAGEMENT AND PERSONNEL
FEASIBILITY

3.1 PERSONNEL (ADMINISTRATIVE)

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  Proposed number of administrative personnel is two.

 Proposed Organizational Chart.

Line Type of Organization

Manager

Financial
Marketing

Cashier Cashier CS CS CS

 Line type of organizational structure provides has district and clear of authority that flows

down to the lowest level of the chain of command of the organization.

Job Requirements Specifications Responsibilities

Manager To coordinate Analyze problems, make decisions,

activities and communicate effort in the
within the implementation of these decisions
organization
Finance Handling of Preparing budget, tax information’s,
financial of the financial report

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 organization Handle of good that will be sell
Stocking;
handling of
the stocking of
goods
Marketing Personal Finding new customers and revenues
selling, image
branding sales
promotions,
publicity
Staff 1, 2, 3, 4, 5.(Cashier Helping Provide an excellent service to our
& Customer services) customer, give valued customers.
service and
receptionist,
cashiers

3.1.1. PROPOSED SALARY OF PERSONNEL

The management and personnel will received the salary total of Rp.6.000.000,-/month

The each staff will be received the salary of Rp.1.000.000,-/month. The total

of Rp.5.000.000,-

We will hire an accountant or book keeper to help us with our financials on retainer’s basis

wages of Rp.1.250.000,-

3.1.2. MANAGEMENT PERSONNEL

Beside Nur Piatin, Retnaning Aristanti and Naning Candra Kurnia, SENIA Organic Food will

have a staff of five:

1 Two cashier

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2 Three customer service.

Personnel plan
Year1 Year2 Year 3
____________________________________________
Nur Piatin Rp.2.000.000,- Rp.2.200.000,- Rp.2.420.000,-
Retnaning Aristanti Rp.2.000.000,- Rp.2.200.000,- Rp.2.420.000,-
Naning Candra Kurnia Rp.2.000.000,- Rp.2.200.000,- Rp.2.420.000,-
2 Cashiers and 3 CS Rp.5.000.000,- Rp.5.500.000,- Rp.6.050.000,-
Total People 8 8 8
_____________________________________________
Total Payroll Rp.11.000.000,- Rp.12.100.000,- Rp.13.310.000,-

3.2. MANAGEMENT PROPOSALS

3.2.1. MANAGEMENT STYLE

We adopt this kind of theory Y because we believe that the expenditure of physical and mental

effort in work is as natural as play or rest. The external control and threat of punishment are not

the only means of bringing about effort toward organizational objective. Commitment objectives

16
is a rewards associated with their achievement. The average human being learns under proper

conditions not only to accept but also to seek responsibilities. The capacity to exercise a

relatively high degree of imagination, ingenuity and creativity in solution of organizational

problems widely not narrowly distributed in the population. Under conditions of modern

industrial life the intellectual potentialities of the average human being are only partially utilized.

3.3. SWOT ANALYSIS

We conduct SWOT analysis of organic products and interest of the community of organic food.

The data obtained by questionnaires and research on these products.

RESULT DATA PROCESSING SWOT

No Factor weight Rating score

Internal Factor (IFE)
STRENGTH
1 Competitive product selling 0,50 4 2
price.
2 All product are healthful 0,40 4 1,6
3 All product have a 0,38 4 1,52
certificate of organic
1,28 5,12
WEAKNESS

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1 The product expensive than 0,25 4 1,0
non-organic
2 The consumer are only the 0,35 3 1,05
middle and upper class
3 Small number of suppliers 0,40 4 1,6
4 Undifferentiated product or 0,20 4 0,8
services
1,20 4,45
External Factors ( EFE)
OPPORTUNITIES
1 Good community response 0,40 4 1,6
2 Demand for organic product 0,40 4 1,6
is very large
3 A market vacated by an 0,40 3 1,20
ineffective competitor
4 A developing market such 0,20 4 0,80
as Internet
1,40 5,20
THREATENS
1 Competitor has a new 0,45 4 1,80
product
2 Taxation is introduced on 0,20 4 0,80
product
3 A new competitor in home 0,35 4 1,40
market
1 4

from the intersection of fourth factor of the Strength, Weakness, Opportunities and Threatens we

get coordinate (0,335 : 0,6)

Strength - Weakness : Opportunities - Threatens

_________________ _____________________
2 2
5,12 – 4,45 : 5,20 – 4
_________ _________
2 2
(0, 335 : 0,6)

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 OPPORTUNITIES

III (Turn-around) I (Aggressive)

WEAKNESS STRENGTH

IV (Defensive) II ( Diversification )

THREATENTS

SWOT analysis results obtained on the matrix coordinates (0.335: 0.6) in which the coordinates

are entered in quadrant I, the quadrant Growth oriented strategy. These conditions are very

favorable.

This business has the opportunity and strength so as to take advantage of existing opportunities.

Strategy should be applied in this condition is to support aggressive growth policy.

STRENGTH WEAKNESS
IFE 1. Human resources 1. The product expensive
availability both in than non-organic
quality and quantity product
2. Strategic shop location 2. Lack of marketing
3. Low cost spent and easy expertise
to obtain equipment 3. The consumers are only
relativity cheap( for the middle and upper
middle and upper class) class.
EFE 4. competitive product 4. Undifferentiated
selling price product or services
5. All product are healthful 5. Small number of
6. All products have a supplier
local or international 6. Shop Location
certificate of organic.
OPPORTUNITIES STRATEGY- SO STRATEGY -WO

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1. A developing market 1. Manager continuously 1. Usage the promotion
such as Internet technology with low
adapt to technology
2. moving into new cost
International Market that 2. Maintaining competitive 2. Recovery the
offer improved profits promotion strategy
prices
3. Mergers, Joint ventures, 3. Expansion of
or strategic alliance. 3. Improve product quality marketing network
4. a market vacated by an 4. Give big discount to
4. Expansion of market
ineffective competitor the consumers
5. a new International share 5. Cooperate not only
market with one supplier.
6. a new supplier for
organic product
THREATENS STRATEGY –ST STRATEGY- WT
1. Competitor sell the same 1. While maintaining 1. Sales promotion and
product advertising to build and
product quality
2. Price war with the maintain bran image by
competitor 2. Improve corporate using a logo.
3. The competitors has a 2. While maintaining
performance.
new innovative product products quality and set
4. a new competitor in 3. Mix existing products a affordable consumer
home market price.
4. Retain customers by
5. Competitors have a 3. Increase cooperation
superior access to providing a satisfactory with other parties
channels distribution. (consumer and
service.
6. Taxation is introduced on supplier).
products

CHAPTER 4 MARKETING FEASIBILITY

___________________________________________
4.1. GENERAL MARKET DESCRIPTION

By using the data gathered in my research and studying the current facilities around the city, in

the past ten years, the Malang city has grown tremendously. The growing student community

combined with the families in the area are a perfect customer support base for the SENIA

Organic Food shop.

Currently, the area is served by two major supermarkets that do not carry any of the product line

20
available at the SENIA Organic Food Shop. The closest natural food store is a twenty minute

drive.

We believe that a local natural food store in the Malang City area would be competitive and offer

customers a product selection that will assure repeat business.

Composition :Its composition of people looking for personal care of healthy food with the

freshest, organically grown fruits and vegetables. Consume of foods without

artificial colors, flavors, or additives. Cleanses, pure, natural supplements and

colors, flavor, or additives.

Geographical
Location :Malang has a total area of 252.136 km2. It shares its borders with

Pasuruan(North), Lumajang(East), and Batu(West). Mounth Bromo, one of Java’s

largest volcanoes and major tourist attraction, is located just to the east of the city.

Malang is served by the Abdul Rachman saleh Airport, a domestic airport with

flights to Jakarta.

Malang city is well-known as a industrial and trading city, tourism city, tourism

city and education city with many fine universities these help enhance Malang city

for intellectual inquiry and innovation, much of this can be found reflected in

Malang city creative arts and talented craftspeople. Malang has a total area of

110.06 km2 .

Climate :Malang city have a cool climate and array of extraordinary attractions. Malang

have scenery that you wont find anywhere else ranging from smoking mountain

tops to shimmering floodplains-and everything in between.

Find a well-worked land blessed with great fertility, a wide range of climates and

ample rain.

21
 Farmers have adapted their skills to work in harmony with the environment, here

you can see agricultural smallholdings farmed as they were centuries ago along

side more recent plantations of exotic crops.

Population :There are roughly 1,175,282 people living in Malang. The population density is

10,000-17,000/Km2, with population growth of 9,3% per year.

Income
Level :Income earners and up, socialites, workers

Job
Categories :Teachers, Government employees, Farm owners, Plantation workers,

Families of over-seas workers, college students and retirees.

4.2. TARGET MARKET

THE SENIA Organic Food will focus two significant customer groups:

1 Families: Many of the young families moving into the Malang City area are doing so

because of its unique community environment. The community is home to a number of artists

and craft people that operate the Malang City Craft fair. This creates a festive environment in the

Malang central commercial/retail area that attract shoppers also attracts young families where

one or both parents are students or employees of the university. These families are a strong

customer base for the SENIA Organic Food shop.

2 Students: A significant number of students prefer to shop at a natural food store. SENIA

22
Organic Food will be within walking distance for most area residents. Our location will make our

shop a convenient place to shop on the way home from classes.

4.2.1. MARKET ANALYSIS

family
20%

student
80%

4.2.2. MALLS LOCATED IN THE CITY:

RAMAYANA DEPT.
JL. Merdeka Timur 369733
STORE
MATAHARI DEPT.
JL. Pasar Besar 1-2 325569
STORE
SARINAH JL. Basuki Rachmad 2A 364523
DEPARTEMENT STORE
SARINAH
Jl Danau Toba 718888
DEPARTEMENT STORE

PLASA MALANG JL. KH Agus Salim 28 324674

PLASA DIENG JL. Raya Langsep 2 568030

PLASA GAJAHMADA JL. KH Agus Salim 18 366589

23
MITRA II Dept Store &
JL. LetJen Sutoyo 32-34 491939
Supermarket
Jl. Blimbing Indah Megah No. 2 Malang 0341-
PLASA ARAYA
409310(www.plazaaraya.com)
MATOS (Malang Town
Jl Veteran 5 Malang
Square)

HERO SUPERMARKET JL. Basuki Rachmad 2A 369085

CAREEFOUR Jl A Yani 2 490023

MITRA I Dept Store &

JL. KH Agus Salim 10-16 327987
Supermarket
MALANG OLYMPIC
Jl. Kawi Malang
GARDEN (MOG)
http://www.malangkota.go.id/index2.php?id=16060730

4.3. DEMAND FIGURES DATA FOR THE LAST FIVE YEARS.

The demand situation of our services, We would like to start, most people care about quality of

food, quality of life, quality of their future and their children’s future.

Year Population of Malang City

2006 861,405
2007 894,999
2008 929,903
2009 966,169
2010 1,003,849
Id.wikipedia.org/wiki/kota_malang

Take the actual demand for the last year(2010) 1,003,849

Less the demand for the first year(2006) (861,405)
The difference increase/ (decrease) 142,444
142.444 divided by 5 (2006 to 2010) 28,488

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 Projected Year Total Projected Demand
2011 (2010=1,003,849) + 28,488 1,032,337
2012(2011=1,032,337) + 28,488 1,060,825
2013(2012=1,060,825) + 28.488 1,089,313
2014(2013=1,089,313) + 28,488 1,117,801
2015(2014=1,117,801) + 28,488 1,146,289

Years of Operation Total Projected Demand

First 1,032,337
Second 1,060,825
Third 1,089,313
Fourth 1,117,801
Fifth 1,146,289

4.4. SUPPLY

According to Masyarakat Pertanian Organik Indonesia (MAPORINA) There is an only one of

supermarket that sold of organic products in Malang City, it is a Cereefour in Jl A.Yani No 2.

So, with only one competitor, we would like to get their market share with our unique service,

good advertising and promotion.

This will be our main reason for easy penetration of the organic market.

4.5. GENERAL MARKETING PRACTICES

A local establishment that could help in marketing our products. They key establishment to

support small and medium enterprise.

1. Malang Trade Center

2. Sampoerna Academy scholarship Winners–Foundation for local education office staff and

entrepreneur.

3. Agribusiness Center of Batu Malang-Organic Farm.

4. Masyarakat Pertanian Organic Indonesia (MAPORINA)

25
5. Kantor Pemerintahan kota Malang .

4.5.1. COMPETITIVE EDGE

Location:

Located in the heart of the Malang City, East Java province.

The foot traffic in the retail area is very strong.

The closest natural food shop to the Malang City is a twenty minute drive.

Community Support:

The SENIA Organic Food is a community market that will give back to the community. We will

participate in community projects like the area’s food bank and community programs for

children. We will also host a number of community events, such as charity pancake brunches and

benefit barbecues.

Sales strategy

The sales strategy of the SENIA Organic Food is simple. The key to customer satisfaction is a

community-friendly store that is easy to navigate and has knowledgeable people to help

customers find what they want quickly.

Sales forecast

26
The following is the SENIA Organic Food’s sales forecast for three years.

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Rp.452.656.552, Rp.494.539.662, Rp540.610.999, Rp.591.289.513,7 Rp.647.035.879,9
- - -
Othe 0 0 0 0 0
r
Total Rp.452.656.552, Rp.494.539.662, Rp540.610.999, Rp.591.289.513,7 Rp.647.035.879,9
Sales - - -

,sales
700000000
Rp540,610,999
600000000 Rp452,656,552
Rp647,035,879
500000000
400000000
300000000 Rp591,289,513
Rp494,539,662
200000000
100000000
0
year1 year2 year3 year4 year5

4.6. PROPOSED MARKETING PROGRAM

27
  Present national and local marketing policies and assistance packages and programs that

will benefit our project.

“One stop shop” program all offices with direct participation of documents are house in one

place for smooth flow of documents.

State Marketing Philosophies and Task

The marketing philosophy and task that we would like to apply in our project is that

developmental marketing because with limited same business, we think that the potential market

is looking for a product quantity beside quality.

 Marketing Research and Development ( R & D ) Program

We update on current Business Analysis, source of information, product and services

development and the source of information, research activities. Budget Limits is Rp. 2.000.000,-

 Product- Mix and Marketing Mix Strategies

Consider our budget Limits: Rp.2.000.000,-

Know your

Product-Mix With: How many lines will be sold by company?

Product-Mix Depth: What will be the average number of items to be offered by company per

product line?

Product-Mix Consistency: What will be the relationship of company’s different product lines to

our all marketing program.

Marketing Timing and Scheduling Strategies: Design Marketing Strategies for our products.

Introduction Stage: SENIA ORGANIC FOOD is still in its introductory stage of start up

business.

 Pricing Strategies

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The SENIA ORGANIC FOOD will utilize pricing that will be consistent with other shop in local

market. Each products will not more expensive than non-organic product. The consumer’s

behavior if satisfied with the service will feel happy and contended and make their first shopping

experienced memorable.

Discounts are offered to consumers who will get the package deal and pay in cash will get a 10%

discounts. The conditioned of merchandise that were using new and will be replaced from time

to time.

 Term and Conditions of sales Strategies

Consider

a. Discount and Allowances:

Quantities discounts : Discounts of the parcel service and non-deliveries.

Cash discounts: Percentage off if paid in cash more from term.

b. Promotional Allowances: Gift Coupon

 Advertising and Promotional Strategies

Advertising

The advertising director will have to carefully develop an advertising campaign to promote the

SENIA ORGANIC FOOD as majority of customers are obtained through word of mouth.

The following advertising methods will be the primary avenues used in spreading the word, of

this new service and increasing the public knowledge of this shop services.

Flyers:

This will be the primary source of advertising for the SENIA ORGANIC FOOD. These will be

passed out throughout the city on a regular basis. The flyers will be distributed at the local hotels,

malls, school, universities, and some of public area. Expense for flyer is included in the office

29
supplies expense.

Radio:

The SENIA ORGANIC FOOD will advertise on RRI Malang- AM 891, FM 94.6(pro 1), FM

91.9(pro 4). Kanjuruhan FM (Kepanjen, kab Malang)-FM 106.5 one month prior to the opening

of the Shop, and on the quarterly basis throughout the year. A representative of RRI has

developed a plan for SENIA ORGANIC FOOD that will include four, 30 second commercials to

run on Monday, Wednesday, and Friday .

Promotions

The advertising director will use a variety of promotional methods to gain more interest from the

community and ensure that they will continue to use our services for their health benefits and

wellness product. Promotions to be used are as follows. Free Tee-shirt. SENIA ORGANIC

FOOD offering one free tee-shirts with the purchase of the signature product. The tee-shirt will

feature a two color design, including the shop’s name, location to be signed later and will cost

the SENIA ORGANIC FOOD Rp.20.000,- The free tee-shirt will be given to the first 100

customers.

4.6.1. CUSTOMER SERVICE

Labeling system:

We introduce ”Labeling System” to help customers making informed choice a bit easier. There

are two elements in this system-

30
1 FOOD LABELS highlights which foods are gluten free, wheat free, sugar free, low

carbohydrate, fair trade or organically made.

2 PRODUCT LABELS shows which products are made with organic ingredients, good for

gift ideas, and good for school children.

Convenient shopping:

1 Twice-a-week home and office delivery

2 Enquiries hotlines and email.

3 Easy ordering methods(phone, fax, online and in person)

Easy payment method:

We accept cash, VISA and Master card payment.

VIP benefits:

Our VIPs are eligible to enjoy purchase discounts, birthday gifts, special promotional offers and

other discounts offered by 3rd party merchants.

CHAPTER 5 PRODUCTS OR TECHNICAL

FEASIBILITY
_______________________________________________________________________

5.1. TYPE OF ORGANIC FOOD PRODUCT

31
The types of Organic food available are fruits, vegetables like apples, carrots, common garlic,

ginger, organically grown garlic, peeled garlic cloves, tamarind to name a few, meat, eggs and

dairy products as well. It has been observed that when it comes to the taste and nutritious value

of organic food, they are far better than foods grown on usual farm. They are extremely popular

with customers. However, it is imperative on the part of the customer to make sure that the

packaged organic food carries a government certification with it.

5.1.2. FRESH ORGANIC FOOD

Most of the organic food sold in the markets and various outlets is in the fresh form. Fruits,

vegetable, meat, egg and dairy products fall under this category.

5.1.3. PROCESSED ORGANIC FOOD

Processed foods are widely popular and covers a huge range in any super marker the world over.

Various products such as canned foods, frozen vegetables and other ready-to-eat foods are

labeled ‘organic’, if the production and processing of these foods have not involved the use of

any chemicals and if they conform to the required standards.

It is important for the consumer to check for government certification before buying any food

that claim to be “organic”. 

5.2. QUALITY PLEDGE

1 Only the finest quality of products will be considered by our merchandising team.

2 Product made of organic ingredient are always on top priority to carry.

3 Food products made of natural ingredients are chosen if they also meet other criteria : no

MSG, no GM substance, no hydrogenated oils, no preservatives, and no additives.

32
5.3. PRODUCT

The SENIA Organic Food will offer customers organic and locally grown produce, chemical-

and preservative-free groceries. The product are:

1 Free of artificial colors

2 Free of artificial preservatives.

3 Free of chemical additives.

4 Organically grown, whenever possible.

5 The least processed or unadulterated version available.

6 Non-irradiated

7 Cruelty free.

5.3.1. KIND OF PRODUCT

Healthy Snacks
 Biscuits/cookies Rp.20.000,-
 Dried Fruits Rp.38.000,-
 Candy/chocolate Rp.18.000,-
 Nuts Rp.56.000,-
Grocer
 Oil Rp.75.000,-
 Soup/Canned Food Rp.26.000,-
 Noodle/Pasta Rp.18.000,-

33
  Dried Food Rp.16.000,-
Jam/Honey
 Jam Rp.48.000,-
 Honey Rp.55.000,-
 Peanut Butter Rp.40.000,-
Healthy Beverage
 Tea Rp.25.000,-
 Juice Rp.19.000,-
 Soy Milk/Coffee Rp.32.000,-
 Instant Beverage Rp.28.000,-
Baby Food
 Fruit Baby Puree Rp.26.000,-
 Baby Organic Biscuits Rp.20.000,-
 Baby Organic Vegetable Mash Rp.21.000,-
Organic Meat
 Organic Chicken Wings Rp.36.000,-
 Organic Chicken Rp.85.000,-
 Organic Sausage Rp.38.000,-
 Organic Tender King ribs Rp.190.000,-
 Organic Beef Rp.37.000,-/lb
 Organic Lamb Rp.21.000,-/lb
 Chicken Nugget Rp.16.000,-/lb
 Beef balls Rp.14.000,-/lb
Organic Vegetables
 Carrots Rp.12.000,-/pack
 Parsley Rp.3.000,-/pack
 Parsnips Rp.4.000,-/pack
 Green Beans Rp.4.000,-/pack
 Asparagus Rp.15.000,-/pack
 Broccoli Rp.10.000,-/lb
 Cauliflower Rp.10.000,-/lb
 Corn Rp.10.000,-/pack
 Onions Rp.10.000,-/pack
 Spinach Rp.7.000,-/lb
 Celery Rp.3.500,-/pack
 Paprika Rp.10.000,-/pack
 Ginger Rp.6.000,-/pack
 Artichokes Rp.10.000,-/pack
 Mushroom and Truffles Rp.15.000,-/pack
 Water Spinach Rp.8.000,-/pack
 Mustard Rp.10.000,-/pack
 Chili Peppers Rp.10.000,-/pack
 Seaweed Rp.10,000,-/pack
 Beets Rp.10.000,-/pack

34
  Sweet Peppers Rp.10.000,-/pack
 Eggplant Rp.8.000,-/pack
 Potatoes Rp.8.000,-/pack
 Cassava Rp.7.500,-/pack
 Sweet Potato Rp.8.000,-/pack
 Chili Rp.60.000,-/pack
 Cabbage Rp.8.000,-/pack
 Yam Rp.10.000,-/pack
 Long Bean Rp.7.000,-/pack
 Sweet Peas Rp.8.900,-/pack
Organic Fruits
 Avocados Rp.12.000,-/lb
 Plums Rp.10.000,-/lb
 Olive Rp.15.000,-/lb
 Almond Rp.12.000,-/lb
 Durian Rp.15.000,-/lb
 Dragon Fruits Rp.11.000,-/lb
 Cucumber Rp.8.000,-/lb
 Coconuts Rp.14.000,-/lb
 Lemons Rp.5.000,-/each
 Bananas Rp.8.000,-/lb
 Kiwi Rp.13.000,-/lb
 Mangoes Rp.13.000,-/lb
 Papayas Rp.10.000,-/lb
 Dates Rp.12.000,-/lb
 Orange Rp.13.000,-/lb
 Tomatoes Rp.9.000,-/lb
 Apples Rp.12.000,-/lb
 Cherry Rp.15.000,-/lb
 Grapes Rp.12.000,-/lb
 Grapefruits Rp.10.000,-/b
 Figs Rp.12.000,-/lb
 Nectarines Rp.12.000,-/lb
 Prunes Rp.12.000,-/lb
 Raisins Rp.12.000,-/lb
 Tangerins Rp.10.000,-/lb
 Fruit sausage Rp.12.000,-/lb
 Pears Rp.12.000,-/lb
 Raspberries Rp.12.000,-/lb
 Strawberries Rp.35.000,-/lb
 Water Melon Rp.10.000,-/lb
 Peaches Rp.12.000,-/lb
Apricots Rp.12.000,-/l
b

35
http://eshop.nlpra.org.hk/index.php?lang=en
http://www.organicvegetables.com/1-16318981-Fruits

http://anaklima.com/sub_category/194-beras_organik

5.4. CERTIFIERS

According ”Otoritas Kompeten Pangan Organic” there currently are no Indonesian accredited

certifier. Some individuals have qualified as organic inspectors due to International recognition.

The National Association for Sustainable Agriculture Australia (NASAA) and SKAL

International are among international certifier that operate in Indonesia.

Food, labeling and advertisement

Date :21 July 1999
Number :PP No.69/1999
Description : Government Regulation of the Republic of
Indonesia No.69 year 1999 regarding food, labeling and
Advertising.

5.5. TECHNOLOGYCAL ASSISTANCE

List of offices and specialist whom our will coordinate with hire on a retainer’s basis who will

help with external techno-managerial assistance during our operation period.

A. Accounting firm for an accountant

B. Book keeper

C. Department of Trade and Industry

5.6. PROJECT SITE LOCATION

36
On Climate

Malang city have a cool climate and array of extraordinary attractions. Malang have scenery that

you wont find anywhere else ranging from smoking mountain tops to shimmering floodplains-

and everything in between.

Find a well-worked land blessed with great fertility, a wide range of climates and ample rain.

Farmers have adapted their skills to work in harmony with the environment, here you can see

agricultural smallholdings farmed as they were centuries ago along side more recent plantations

of exotic crops.

Project Proposed Location:

Our proposed location for our business is located in one of the biggest mall of Malang City, East

Java Province. The foot traffic is high everyday because of the presence of supermarket,

department stores, food stalls and other amenities of the mall. Nearby is the establishment of the

government offices, universities, bank and business.

State the current cost of real state in the vicinity of our project site.

Distribution

37
 Produsen

Import Agen Local

Wholesaler

Retailer

Customer

38
5.7. PROJECT LAYOUT

The area in third floor insides the MATOS. The mall had 3 floors on the ground floor is the non-

organic supermarket and food court. The second floor is department store and the massage

parlor.

5.8. FLOOR PLAN

CHAPTER 6 FINANCING FEASIBILITY

39
________________________________________________________________________

The following is the Financial Plan for the SENIA Organic Food shop

6.1. ESTIMATED INITIAL CAPITAL

MONTHLY

Cash total
Salary of owner-manager Rp.6.000.000,-
All other salaries and wages Rp.5.000.000,-
Advertising Rp.200.000,-
Supplies Rp.1.500.000,-
Telephone Rp.50.000,-
Other Rp.400.000,-
Insurance Rp84.000,-
Taxes, including social security Rp.29.200,-
Interest Rp.2.786.666,67
Maintenance Rp.165.000,-
Legal and Other professional fees Rp.1.250.000,-
Miscellaneous Rp.0
Total Rp.17.464.866,70

ONE-TIME

Cash Total
Building Rp.200.000.000,-
Fixtures and Equipment Rp.192.359.000,-
Installation charges Rp.1.250.000,-
Deposits with public utilities Rp.1.000.000,-
Legal and Other professional fees Rp.4.000.000,-
Licenses and Permits Rp.2.000.000,-
Advertising and promotion for opening Rp.5.000.000,-
Cash Rp.74.926.134,-
Others Rp.2.000.000,-
Subtotal Rp.482.535.133,-

40
Total Estimated initial capital Rp.500.000.000,-
(Monthly and One-Time)

CHAPTER 7 FINANCIAL FEASIBILITY

________________________________________________________________________

7.1. MAJOR ASSUMED COST

CATEGORY SHARES %CONTRIBITION

________________________________________________________________________
Nur Piatin Rp.150.000.000,- 30%
Retnaning Aristanti Rp.125.000.000,- 25%
Naning Candra K Rp.125.000.000,- 25%
Of Bank Rp.100.000.000,- 20%
TOTAL: Rp.500.000.000,- 100%

41
7.2. TABLE INVESTMENT AND DEPRECIATION

Uni Ag
Description t e Price Total Price Residual Value Depreciation
Rp200,000,000.0
Building       0    
Shelf 5 10 Rp7,500,000.00 Rp37,500,000.00 Rp3,750,000.00 Rp3,375,000.00
Freezer 2 8 Rp16,400,000.00 Rp32,800,000.00 Rp3,280,000.00 Rp3,690,000.00
Cashier machine 2 10 Rp25,000,000.00 Rp50,000,000.00 Rp5,000,000.00 Rp4,500,000.00
Computer&Printer 1 10 Rp3,150,000.00 Rp3,150,000.00 Rp315,000.00 Rp283,500.00
AC 2 10 Rp3,789,500.00 Rp7,579,000.00 Rp757,900.00 Rp682,110.00
Motor Cycle 1 8 Rp12,100,000.00 Rp12,100,000.00 Rp1,210,000.00 Rp1,361,250.00
Basket 10 10 Rp280,000.00 Rp280,000.00 Rp28,000.00 Rp25,200.00
Wrapping Machine 2 10 Rp350,000.00 Rp700,000.00 Rp70,000.00 Rp63,000.00
Cashier Desk 2 10 Rp1,500,000.00 Rp3,000,000.00 Rp300,000.00 Rp270,000.00
Manager Desk 1 10 Rp2,750,000.00 Rp2,750,000.00 Rp275,000.00 Rp247,500.00
Tool for Inventory 2 10 Rp20,000,000.00 Rp40,000,000.00 Rp4,000,000.00 Rp3,600,000.00
Other 1 5 Rp2,500,000.00 Rp2,500,000.00 Rp250,000.00 Rp450,000.00
Rp392,359,000.0 Rp18,547,560.0
Total Investment       0   0
Working Capital is Rp107,641,000.0
needed       0    
Rp500,000,000.0 Rp500,000,000.0
Total Project Cost     0 0    

42
7.3. CREDIT REPAYMENT TABLE

Credit is provided by bank using an interest rate of 20% with an Table Interest Calculation system as

the balance decreases. The credit repayment term is 5 years with installments of principal and

interest paid each month. The monthly installment payment of principal and interest at present is

listed in the table below:

Principal
Year Loan Interest Payment Loan Payment
Rp100,000,000.0 Rp33,440,000.0
0 0     0
Rp20,000,000.0 Rp33,440,000.0
1 Rp86,560,000.00 0 Rp13,440,000.00 0
Rp17,312,000.0 Rp33,440,000.0
2 Rp70,432,000.00 0 Rp16,128,000.00 0
Rp14,086,400.0 Rp33,440,000.0
3 Rp51,078,400.00 0 Rp19,353,600.00 0
Rp10,215,680.0 Rp33,440,000.0
4 Rp27,854,080.00 0 Rp23,224,320.00 0
Rp33,440,000.0
5   Rp5,570,816.00 Rp27,869,184.00 0

43
7.4. COST OF GOOD SOLD
N
o DESCRIPTIONS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1 Direct material Rp.107,641,000 Rp.118,405,100 Rp130,245,610 Rp143,270,171 Rp157,597,188

2 Direct Worker Rp132,000,000 Rp145,200,000 Rp159,720,000 Rp175,692,000 Rp193,261,200

3 Overhead          
  Electricity Rp2,400,000 Rp2,640,000 Rp2,904,000 Rp3,194,400 Rp3,513,840
  Water Rp480,000 Rp528,000 Rp580,800 Rp638,880 Rp702,768
  insurance Rp1,000,000 Rp1,000,000 Rp1,000,000 Rp1,000,000 Rp1,000,000
  Property tax Rp350,000 Rp350,000 Rp350,000 Rp350,000 Rp350,000
  Telephone Rp600,000 Rp660,000 Rp726,000 Rp798,600 Rp878,460
  Maintenance Rp2,000,000 Rp2,200,000 Rp2,420,000 Rp2,662,000 Rp2,928,200
  Depreciation Rp18,547,560 Rp18,547,560 Rp18,547,560 Rp18,547,560 Rp18,547,560
  Material Handling Rp1,250,000 Rp1,375,000 Rp1,512,500 Rp1,663,750 Rp1,830,125

  Total of Fabrication Rp266,268,560 Rp290,905,660 Rp318,006,470 Rp347,817,361 Rp380,609,341

4 Pre Product Inventory - - - - -

44
 Total cost of
  production Rp266,268,560 Rp290,905,660 Rp318,006,470 Rp347,817,361 Rp380,609,341
5 Ending Product Invent - - - - -

  COGS Rp266,268,560 Rp290,905,660 Rp318,006,470 Rp347,817,361 Rp380,609,341

  PPN 10% Rp26,626,856 Rp29,090,566 Rp31,800,647 Rp34,781,736 Rp38,060,934
  Profit 60% Rp159,761,136 Rp174,543,396 Rp190,803,882 Rp208,690,417 Rp228,365,605
  Sales Price( Year) Rp452,656,552 Rp494,539,622 Rp540,610,999 Rp591,289,514 Rp647,035,880
Unit Production
  ( Year) 16,200 17,820 19,602 21,562 23,718
  COGS ( Unit) Rp16,436 Rp16,325 Rp16,223 Rp16,131 Rp16,047
  Sales Price( Unit ) Rp27,942 Rp27,752 Rp27,579 Rp27,423 Rp27,280
  Total Sales/ Unit Rp44,378 Rp44,077 Rp43,803 Rp43,553 Rp43,327

7.5. INCOME STATEMENT

N
o Description Year 1 Year 2 Year 3 Year 4 Year 5
1 Sales Rp452,656,552 Rp494,539,662 Rp540,610,999 Rp591,289,514 Rp647,035,880
Less: Cost Of Good
2 Sold Rp266,268,560 Rp290,905,660 Rp318,006,470 Rp347,817,361 Rp380,609,341
  Gross Profit Rp186,387,992 Rp203,634,002 Rp222,604,529 Rp243,472,153 Rp266,426,539
Less: Commercial
3 Expenses          
  Administrative Expens Rp9,000,000 Rp9,900,000 Rp10,890,000 Rp11,979,000 Rp13,176,900
  Selling Expenses Rp54,400,000 Rp59,840,000 Rp65,824,000 Rp72,406,400 Rp79,647,040
  Interest Rp20,000,000 Rp17,312,000 Rp14,086,400 Rp10,215,680 Rp5,570,816
Total Commercial
  Expens Rp83,400,000 Rp87,052,000 Rp90,800,400 Rp94,601,080 Rp98,394,756
             
  Net Income Before Tax Rp102,987,992 Rp116,582,002 Rp131,804,129 Rp148,871,073 Rp168,031,783

45
  Less:          
  Income Tax 30% Rp30,896,398 Rp34,974,601 Rp39,541,239 Rp44,661,322 Rp50,409,535
  PPN 10% Rp45,265,655 Rp49,453,966 Rp54,061,100 Rp59,128,951 Rp64,703,588
  Net Income After Tax Rp26,825,939 Rp32,153,435 Rp38,201,790 Rp45,080,800 Rp52,918,660

7.6. CASH FLOW

Description Year 0 Year 1 Year2 Year 3 Year 4 Year 5
Inflow            
Rp100,000,00
Credit loan 0 Rp0 Rp0 Rp0 Rp0 Rp0
Rp400,000,00
Own Capital 0 Rp0 Rp0 Rp0 Rp0 Rp0
Rp26,825,93 Rp32,153,44
Net Income Rp0 9 1 Rp38,201,790 Rp45,080,800 Rp52,918,660
Rp18,547,56 Rp18,547,56
Depreciation Rp0 0 0 Rp18,547,560 Rp18,547,560 Rp18,547,560
Rp500,000,00 Rp45,373,49 Rp50,701,00
Total Inflow 0 9 1 Rp56,749,350 Rp63,628,360 Rp71,466,220
Outflow:            
Rp500,000,00
Investment 0 Rp0 Rp0 Rp0 Rp0 Rp0
Principal Payment Rp13,440,00 Rp16,128,00
Credit Rp0 0 0 Rp19,353,600 Rp23,224,320 Rp27,869,184
Rp500,000,00 Rp13,440,00 Rp16,128,00
Total Outflow 0 0 0 Rp19,353,600 Rp23,224,320 Rp27,869,184

46
 Rp31,933,49 Rp34,573,00
Inflow-Outflow Rp0 9 1 Rp37,395,750 Rp40,404,040 Rp43,597,036
Rp31,933,49 Rp103,902,25 Rp144,306,29
Beginning Cash Rp0 Rp0 9 Rp66,506,500 1 0
Rp31,933,49 Rp66,506,50 Rp103,902,25 Rp144,306,29 Rp187,903,32
Ending Cash Rp0 9 0 1 0 6

7.7. BALANCE SHEET

Description Year 1 Year 2 Year 3 Year 4 year 5

ASSETS:          
Current Assets          
Rp103,847,650.4 Rp144,251,689.9 Rp187,848,725.9
cash Rp31,878,899.00 Rp66,451,900.00 0 0 0
Account Rp107,641,000.0 Rp107,641,000.0 Rp107,641,000.0 Rp107,641,000.0 Rp107,641,000.0
Receivable 0 0 0 0 0
Pre prod
inventory          

47
Ending Prod
Inventory          
Rp139,519,899.0 Rp174,092,900.0 Rp211,488,650.4 Rp251,892,689.9 Rp295,489,725.9
Total Current assets 0 0 0 0 0
Fixed Assets          
Rp200,000,000.0 Rp200,000,000.0 Rp200,000,000.0 Rp200,000,000.0 Rp200,000,000.0
Building 0 0 0 0 0
Fixture & Rp192,359,000.0 Rp192,359,000.0 Rp192,359,000.0 Rp192,359,000.0 Rp192,359,000.0
Equipment 0 0 0 0 0
Rp392,359,000.0 Rp392,359,000.0 Rp392,359,000.0 Rp392,359,000.0 Rp392,359,000.0
Total Investment 0 0 0 0 0
Less: acc
Depreciation Rp18,547,560.00 Rp37,095,120.00 Rp55,642,680.00 Rp74,190,240.00 Rp92,737,800.00
Rp373,811,440.0 Rp355,263,880.0 Rp336,716,320.0 Rp318,168,760.0 Rp299,621,200.0
Total Fixed Assets 0 0 0 0 0
           
Rp513,331,339.0 Rp529,356,780.0 Rp548,204,970.4 Rp570,061,449.9 Rp595,110,925.9
Total Assets 0 0 0 0 0
           
LIABILITIES          
Mortage Due Rp0 Rp0 Rp0 Rp0 Rp0
Bank Line Credit Rp86,560,000 Rp70,432,000 Rp51,078,400 Rp27,854,080 Rp0
Total Liabilities Rp86,560,000 Rp70,432,000 Rp51,078,400 Rp27,854,080 Rp0
Capital          
own capital Rp400,000,000 Rp400,000,000 Rp400,000,000 Rp400,000,000 Rp400,000,000
Retained earning Rp26,771,339 Rp58,924,780 Rp97,126,570 Rp142,207,370 Rp195,126,030
Total Capital Rp426,771,339 Rp458,924,780 Rp497,126,570 Rp542,207,370 Rp595,126,030
           
Total liabilities Rp513,331,339 Rp529,356,780 Rp548,204,970 Rp570,061,450 Rp595,126,030

7.8. BREAK EVENT POINT

Year 1 Year 2 Year 3 Year 4 Year 5

Rp452,656,55 Rp494,539,66 Rp540,610,99 Rp144,251,69
Sales 2 2 9 0 Rp187,848,726

48
Fixed Cost          
Electricity Rp2,400,000 Rp2,640,000 Rp2,904,000 Rp3,194,400 Rp3,513,840
Pam Rp480,000 Rp528,000 Rp580,800 Rp638,880 Rp702,768
Insurance Rp1,000,000 Rp1,000,000 Rp1,000,000 Rp1,000,000 Rp1,000,000
Property Tax Rp350,000 Rp350,000 Rp350,000 Rp350,000 Rp350,000
Telephone Rp600,000 Rp660,000 Rp726,000 Rp798,600 Rp878,460
Maintenance Rp2,000,000 Rp2,200,000 Rp2,420,000 Rp2,662,000 Rp2,928,200
Depreciation Rp18,547,560 Rp18,547,560 Rp18,547,560 Rp18,547,560 Rp18,547,560
Administrative
Expenses Rp9,000,000 Rp9,900,000 Rp10,890,000 Rp11,979,000 Rp13,176,900
Selling Expenses Rp54,400,000 Rp59,840,000 Rp65,824,000 Rp72,406,400 Rp79,647,040
Interest Rp20,000,000 Rp17,312,000 Rp14,086,400 Rp10,215,680 Rp5,570,816
Rp108,777,56 Rp112,977,56 Rp117,328,76 Rp121,792,52 Rp126,315,58
Total Fixed Cost 0 0 0 0 4
Variable Cost :          
Rp107,641,00 Rp118,405,10 Rp130,245,61 Rp143,270,17 Rp157,597,18
Direct Material 0 0 0 1 8
Rp132,000,00 Rp145,200,00 Rp159,720,00 Rp175,692,00
Direct Worker 0 0 0 0 Rp193,261,200
Material handling Rp1,250,000 Rp1,375,000 Rp1,512,500 Rp1,663,750 Rp1,830,125
Income Tax 30% Rp30,869,098 Rp34,974,589 Rp39,541,239 Rp44,661,322 Rp50,409,535
PPN 10% Rp45,256,555 Rp49,453,962 Rp54,061,100 Rp59,128,951 Rp64,703,588
Rp317,016,65 Rp349,408,65 Rp385,080,44 Rp424,416,19 Rp467,801,63
Total Variable Cost 3 1 9 4 6
           
Rp363,011,73 Rp384,975,50 Rp407,824,81 -
BEP Rp 6 5 6 Rp62,708,789 Rp0
Average price/ Unit Rp44,378 Rp44,077 Rp43,803 Rp43,553 Rp43,327
BEP (Unit) 8,180 8,734 9,311 (1,440) 0

Year1 Year2 Year 3 Year 4 Year5

Return On Sales 6% 7% 7% 8% 8%
Return On
Investment 5% 6% 8% 9% 11%
Gross profit margin 41% 41% 41% 41% 41%
Rp56,749,35
Annual cash flow Rp45,318,899 Rp50,700,971 0 Rp636,370,313 Rp71,466,220
Average cash flow Rp172,121,151        
Payback period 4 Year        
BEP in the sale of this business is worth Rp.447.979.475,-. While the average BEP production

units are 10.182

49
7.9. INTERNAL RATE OF RETURN (IRR)

YEA Inflow Discounted cash flow

R Outflow
Net Profit Depreciation Net cash flow 18 30
- - -
0 Rp500,000,000 Rp0 Rp0 Rp500,000,000 Rp500,000,000 Rp500,000,000
1 Rp13,440,000 Rp26,771,339 Rp18,547,560 Rp31,878,899 Rp27,016,016 Rp24,522,230
2 Rp16,128,000 Rp32,153,411 Rp18,547,560 Rp34,572,971 Rp24,829,769 Rp20,457,379
3 Rp19,353,600 Rp38,201,790 Rp18,547,560 Rp37,395,750 Rp22,760,208 Rp17,021,279
4 Rp23,224,320 Rp45,080,800 Rp18,547,560 Rp40,404,040 Rp20,839,954 Rp14,146,577
5 Rp27,869,184 Rp52,918,660 Rp18,547,560 Rp43,597,036 Rp19,056,666 Rp11,741,949
Total -Rp385,497,386 -Rp412,110,585

CHAPTER 8 SOCIO-ECO FEASIBILITY

50
8.1 PROJECTS EMPLOYEE

The projects employee will receive a daily salary and cost of living a month, social security

service (SSS) membership paid by the company while he/she is employed, one week annual

leave, sick/maternity leave’s days off in one week. After working for 5 months she will be

considered as a regular employee and entitled to 13th month pay.

8.2 THE GOVERNMENT

The government will received the taxes such as sales tax, income tax and taxes for application of

business in Malang City.

8.3 OTHER BENEFICIARIES

As company who care for the health and wellness, we believe that we have to share to the

community by getting involved sponsorship of public health projects and the environment like

recycling efforts.

By selling organic products we will support all programs related to health and environmental

conservation by minimizing the use of plastic bags

We will follow the social activities, such as giving compensation to the orphanage, hold a

donation for disaster victims.

CHAPTER 9 PROJECT IMPLEMENTATION AND TIME

TABLE

51
9.1. Gantt- Chart of Activities
No Activity 2010 2011
Sept Oct Nov Des Jan Feb Mar
1 Project conceptualization &
identification
2 Preparation of project
feasibility Study
3 Negotiations/ Approval/
Release of Finance from
project proponents
4 Determination/Manageme
nt/marketing contracts.
5 Incorporation/Legal
Registration
6 Arrangement/Supervision
for management.
7 selection/recruitment/train
ing of staff.
8 Delivery and receipt
acquisitions/construction/
Installation of project
9 Land, Improvements
building facilities
10 Supervision for marketing
budgets, promotions
11 Dry Run of Operations

12 Start of normal operation

9.2. BUDGETING AND COSTING

No Activity Pre-Operating Cost

52
 1 Project conceptualization &
identification
2 Preparation of project feasibility Study
3 Negotiations/ Approval/ Release of
Finance from project proponents
4 Determination/Management/marketing
contracts.
5 Incorporation/Legal Registration
6 Arrangement/Supervision for
management.
7 selection/ recruitment/ training of
staff.
8 Delivery and receipt
acquisitions/construction/
Installation of project
9 Land, Improvements building facilities

10 Supervision for marketing budgets,

promotions
11 Dry Run of Operations

12 Start of normal operation

9.3. ASSIGNMENT OF ACTIVITIES

No Activity In-Charge

53
1 Project conceptualization & Naning
identification
2 Preparation of project feasibility Study Nur Piatin, Naningm
Retnaning
3 Negotiations/ Approval/ Release of Retnaning
Finance from project proponents
4 Determination/Management/marketing Retnaning, Naning
contracts.
5 Incorporation/Legal Registration Nur Piatin, Retnaning
6 Arrangement/Supervision for Nur Piatin
management.
7 selection/ recruitment/ training of Nur Piatin, Naning
staff.
8 Delivery and receipt Naning
acquisitions/construction/
Installation of project
9 Land, Improvements building facilities Nur Piatin, Naning,
Retnaning
10 Supervision for marketing budgets, Naning
promotions
11 Dry Run of Operations Nur Piatin, Naning,
Retnaning
12 Start of normal operation Nur Piatin, Naning,
Retnaning

CHAPTER 10 ANNEXES AND OTHER

54
WEBSITES

www.Bplans.com

www.Wellsphere.com

www.org-organics.org.uk/about-us.htm

www.pemkot-malang.go.id/eng/about.php

agribusinessplan.usask.ca/

1.http://www.abc-supermarket.com/cgi-bin/mivavm?

Merchant2/merchant.mvc+Screen=PROD&Store_Code=SE&Product_Code=TGM-69RFreezer

Freezer HK$3,154= Rp3,154,000

2.http://www.abc-supermarket.com/cgi-bin/mivavm?

Merchant2/merchant.mvc+Screen=PROD&Store_Code=SE&Product_Code=TGM-69RFreezer

machine chasier USD 718 = Rp6,500,000

3.http://www.ecvv.com/cat6/Supermarket-Shelf.html supermarket shelf USD 50 supermarket

shelf= Rp450,000

4.http://www.alibaba.com/products/cashier_desk/--28290399.html chasier Desk USD 175=

Rp1,575,000

http://forum.ub.ac.id/index.php?action=vthread&forum=6&topic=2491 (Price Stand in MATOS)

rent= Rp30,000,000/th sell= Rp260,000,000

SUPPLEMENTS:

List of marketing forms and records:

55
Sales Invoice-used to invoice merchandise (service) sold to customers either in cash or in charge

basis

Delivery Receipts- issued along with sales invoice and used a posting reference in our stock

cards.

Receiving Receipts-are used to record stock purchases from suppliers.

Credit memos- issued to customers who purchase on discounts or those who are given rebates.

Official Receipts-are given to customers who make direct or full payment of their purchased

items.

Project General Company policies:

Minimum standard requirement in operating shop in the Malang City according to revised rules

and regulations of Department of Trade and Industry, department of Health. If corporations-

security and exchange commissions. Local Government Office, Mayors office.

The location should be safe and comfortable.

There should be a reception center attended by qualified and trained staff.

There should be separate toilets for men and women.

The shop should be provide different types of product.
There should be a suitable facilities and provision for disabled, a will stocked first aid cabinet.

LOGO FOR OUR SHOP

56
57
58
59
Surat Izin Usaha Perdaga
SENIA ORGANIC FOOD

NO :98763 /87649900

Click to Enter Comment

Day
This of Buy SmartDraw!- purchas
Signature
document without a
Visit www.smartdraw.com or

CURICULUM VITAE

60
PERSONAL DETAIL
Name : Retnaning Aristanti
Place/Date of birth : Gresik, April 14th 1989
Sex : Female
Weight/height : 56Kgs/157 cm
Marital Status : Single
Religion : Islam
Address : Dsn. Kedungsuruh Ds.Kebondalem RT 002/001
Kec.Bareng Kab.Jombang JAWA-TIMUR
INDONESIA(61474)
Phone : (0321)3394700
: Hp (852)91476550
E-mail : a.retnaning@yahoo.com
Father’s name : Askanto
Mother’s Name : Sunanik

EDUCATIONAL BACKGROUND
Formal
1. State Elementary School 1 Kebondalem Jombang 2001
2. ISLAM Junior High School Ngoro Jombang 2004
3. PGRI Junior High School 1 Jombang 2007
Informal
1. English Grammar Level 1,2,3,4 Assessment Capstone College ,Hong Kong (2010)

ORGANIZATION EXPERIENCE
1. Chairman of Organisasi Siswi Intra Sekolah (OSIS) (2001-2003)
2. Chairman of Forum Karya Ilmiah Remaja (KIR) (2005-2006)

COMPUTER SKILL
Understand several application with DOS, Windows Environment ( World, Excel, Corel,
Publisher, Power point, Visio, Paint, internet Explorer, Visual Basic and Access).

Hong Kong, March 20th 2011

Retnaning Aristanti

61
 CURICULUM VITAE

PERSONAL DETAIL
Name : Nur Piatin
Place/Date of birth : Madiun, July 21, 1985
Sex : Female
Weight/height : 48Kgs/151 cm
Marital Status : Single
Religion : Islam
Address : Dsn. Kedungsemak, Ds.Bulakrejo, RT 02, RW 01
Kec. Balerejo, Kab.Madiun, JAWA-TIMUR
INDONESIA(63125)
Phone : +6287852714743
E-mail : aisyah_fiatin@yahoo.com
Father’s name : Pono
Mother’s Name : Konah

EDUCATIONAL BACKGROUND
Formal
4. State Elementary School Bulakrejo, Bulakrejo, 1999
5. State Junior High School 2 Wonoasri, Bulakrejo, 2001
6. PGRI 2 Junior High School Wonoasri, Bulakrejo 2004
Informal
2. English Grammar Level 1 Assessment Capstone College ,Hongkong (2010)

ORGANIZATION EXPERIENCE
3. Organisasi Siswi Intra Sekolah(OSIS) (2001-2003)
4. Karang taruna Desa Bulakrejo (2002-2004)

COMPUTER SKILL
Understand several application with DOS, Windows Environment ( World, Excel, Corel,
Publisher, Power point, Visio, Paint, internet Explorer, Visual Basic and Access).

Hong Kong, March 20th 2011

Nur Piatin

62
 CURICULUM VITAE

PERSONAL DETAIL
Name : Naning Candra Kurnia
Place/Date of birth : Blitar, June 7 1984
Sex : Female
Weight/height : 45Kgs/154 cm
Marital Status : Single
Religion : Islam
Address : Jln Arjuna No 3 Babadan Kesamben Blitar,
JawaTimur (66191), INDONESIA.
Phone : (0342) 331349
: Hp (852)94560460
E-mail : chandrania88@yahoo.co.id
Father’s name : Bambang Budianto
Mother’s Name : Sunarsih

EDUCATIONAL BACKGROUND
Formal
7. State Elementary School 4 ,Kesamben, Blitar, 1996
8. State Junior High School 1 ,Kesamben Blitar, 1999
9. State Junior High School 1,Talun Blitar, 2002
Informal
1. English Grammar Level 1,2,3 Assessment Capstone College, Hongkong (2010)
2. Computer Ms Office ( Word, Exel, Power Point, Internet)
ORGANIZATION EXPERIENCE
5. Organisasi Siswa Intra Sekolah (OSIS) (1998-1999)
6. Karang Taruna Desa Kesamben ( 1998-2000)

COMPUTER SKILL
Understand several application with DOS, Windows Environment (World, Excel, Corel,
Publisher, Power point, internet Explorer, Visual Basic and Access).

Hong Kong, March 20th 2011

Naning Candra Kurnia

63
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