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Executive Summary
The general business plan is prepared for Best Choice Companys management, as it was requested by the owner, Mr. Mohammed AL Shaikh (Abu Omar). The purpose of preparing the plan is to assess the Managers abilities and strategies to handle the new and current investment of Best Choice in Malaysia. The Malaysian market is promising for the investment in the Middle East region because the countrys export and import relations develop, and GDP grows annually. In this context, much attention should be paid to investing into the countrys palm oil industry because it contributes to the Malaysian economic progress significantly.
The key approaches to handling the investment that can be discussed as advantageous for Best Choice Company include the development of promising relationships with suppliers, customers, and partners; the integration of diversification approaches to distributing investments; the implementation of the differentiation strategy for improving the potential of the industry; the expansion of operations; and the minimization of risks. The core financial elements, such as the potential financial profits and risks, are addressed. Funding requirements, such as banks, business owners, and other options, are also identified.
The management team includes me as a Manager and potential candidates who will be employed for the promotion and completion of sale strategies. The ability to track the business is also supported by references to my personal and professional skills and leadership. I have comprehensive knowledge regarding the development of small and medium enterprises and associated investment options. I am focused on promoting sustainable strategies in business. I have developed managerial skills, and I am also able to train the personnel.
Company Description
Promoters and Shareholders
At the current stage of the business development, the focus is on the managerial potential of the firm and activities of Area Manager (Abu Maha). The selection of the secretary candidate is possible. As a Manager, I am responsible for directing all business activities and dealing with experts in the areas of interest. My activities are associated with the financial and legal areas, as well as the sphere of engineering.
In the company, shareholders are Mr. Sami Alsubieh and Mr. Mohammed ALshaikh, whose number of shares is about 1,000,000. It is possible to speak about the 50% shareholding and associated cash investment.
Long-Term Aim of the Business
To contribute to the growth of Best Choice Company in East Asia, and particularly in Malaysia, with the focus on expanding operations in the region; increasing the number of customers; establishing high-profit margins related to investments; diversifying opportunities for investing in industries; as well as on minimizing risks.
Objectives
- To develop the working strategic plan on increasing profits or revenues within the next 3-5 years.
- To develop and integrate the plan on expanding operations in the region for the next 3-5 years.
- To develop and implement an effective investment plan.
- To minimize investment risks by 50%.
- By the end of the third year, to increase the profits by 65%.
- To develop and integrate the differentiation strategy.
SWOT Analysis
Market Analysis
Target Market
The market of Malaysia develops actively. The GDP for 2016 is potentially composed of 1.2% for agriculture, 4% for industry, and 5% for services ( Malaysia Profile par. 2). In this context, the palm oil industry is emphasized, having more than 40% share of the palm oil production worldwide ( Palm Oil Research par. 3). In 2014, more than 19 billion tons of palm oil was produced in Malaysia (Figure 1; Just How Big is Malaysias Palm Oil Industry? par. 3).
Total Market Valuation
The palm oil industry is divided into such segments as the seed nursery, planting, and collecting, followed by the production of oil. This industry accounts for more than 5% of the countrys GDP ( Just How Big is Malaysias Palm Oil Industry? par. 3). More than 90% of the oil was exported in 2012 (Palm Oil Research par. 3). More than 550,000 people are employed in this industry (Palm Oil Research par. 4). The industry develops because the global consumer demand for palm oil products increases annually.
Market Trends
Currently, the sector accounts for more than RM50 billion. Although there were fluctuations in the volume of production and exports during 2014the early part of 2015 caused by the flooding, the current growth of the industry is stable ( Malaysia: 2014/15 Palm Oil Production Affected by Flooding par. 3). The Malaysian industry is targeted to reach RM178 billion by 2020, and 98% of funding will be from the private sector, reinforcing their leading role in steering the palm oil industry ( Malaysias Palm Oil Industry Needs to Enhance Upstream Productivity par. 2). To address the future demands, it is necessary to increase the productivity of the industry with the focus on the expanded investment opportunities.
Profile of Competitors
The domestic competition in the Malaysian palm oil industry is represented by BLD Plantation Bhd, Genting Plantations, and Felda Global Ventures Holdings Bhd among other smaller companies. Still, the main global competitor in Indonesia that shares more than 46% of palm oil production worldwide (Figure 2; Rusmana and Listiyorini par. 4).
Marketing/Sales Strategy
Marketing Strategy
The proposed marketing strategy is based on using the principles of social responsibility and implementing low-budget and high-impact marketing techniques.
The company should focus on promoting sustainability in operations to address the needs of stakeholders, the problem of environmental protection and the lack of lands for palm oil production in Malaysia.
The focus is on:
- Developing relationships with suppliers, customers, and partners.
- The integration of diversification approaches.
- The implementation of the differentiation strategy.
- The expansion of operations.
- Minimization of risks.
- Addressing the needs of the community and consumers.
The benefits of this approach are in attracting the interests of the community not only in Malaysia but also worldwide because of respecting the principles of social responsibility and applying low-cost techniques. The expected results are the expansion of the companys operations and the increased impact on the industry.
Sales Strategy
In the context of the sales strategy, it is appropriate to use the services of domestic and international agents and sales representatives who spread the information regarding the products and services worldwide to increase the potential sales. Revenue sharing partners are also involved in enhancing the productivity of the supported facilities. The website should include information regarding changes in the companys profitability to attract potential partners and consumers.
Pricing
The price should be set depending on the competitors prices, production costs, as well as on the assessment of the overall competition in the global market.
Marketing and Communications Strategy
The promotion is based on direct marketing, the reference to developed public relations, the usage of the website and social media to report on the sales and update the information important to stakeholders and shareholders. The companys representatives should participate in conferences and exhibitions to inform the public about their achievements.
Research and Development
It is important to conduct more researches to investigate how consumer demands and the land abilities to produce the raw resources change over the determined period. To meet market demands in the future, it is necessary to invest more in increasing the land capacity and development of facilities to produce palm oil among other competitive products.
Staffing and Operations
Staffing
With the focus on more investment projects and diversification and differentiation strategies, it is important to increase the number of employees and pay more attention to facilitating their productivity. The staff having different managerial skills to support the operations related to the particular type of investments will be employed.
Training Plans
Focusing on worldwide sales and expanded operations, managers and employees need to participate in training sessions to improve their specific knowledge or skills.
Operations
More production facilities should be built to address changes in the increased production. The innovative equipment is expected to be used to protect the environment.
Financial Projections
Key Assumptions
The projected income sources include the promoters funds, the investments of business owners, and the lending from Malaysian banks. The current number of employees will be increased by 10%. The highest part of investments will be spent on improving the productivity and expanding operations. The small part will be spent on equipment, research, and development, as well as training.
Profit & Loss Accounts
Projected profit and loss accounts for the first three years of the companys operations.
Balance Sheets
Projected balance sheets for the first three years of the companys operations.
Cashflow
Monthly cash flow prediction for the first two years of the companys operations.
Sales Pipeline
The sales pipeline will depend on the number of customers that we will be dealing with, the size of the deal (that can be small or big), the profits of getting the sales, and the expected PO. The focus on the sales pipeline will allow choosing partners and customers with whom it is possible to develop beneficial relationships.
Funding Requirements
The promoters funds, the investments of business owners, and the lending from Malaysian banks are identified sources that are important to support the implementation of the determined strategies to expand palm oil production in the Malaysian and global markets.
Works Cited
Just How Big is Malaysias Palm Oil Industry? 2015. Web.
Malaysia Profile. 2016. Web.
Malaysia: 2014/15 Palm Oil Production Affected by Flooding. 2015. Web.
Malaysias Palm Oil Industry Needs to Enhance Upstream Productivity. 2015. Web.
Palm Oil Research. 2016. Web.
Rusmana, Yoga, and Eko Listiyorini. Palm Oil Sales from Top Grower Dropping First Time Since . 2015. Web.
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NB: All your data is kept safe from the public.