Mumugi Business Plan

BU

bDFSF

BUSINESS PLAN

Mumugi Corporation established in January, 14th 2013 and I, Yudistira Soepadmo got the honor to become Chief Executive Office. I am aware that this responsibility is huge and I am ready to take all of the risk and challenges, Mumugi itself was founded by 17 people as all become part of our team. It was founded to achieve perfect score in Entrepreneurship subject. Our business main product is Mug that are different from other Entrepreneurship as we belief it will give us advantages in this rivalries. Our main purpose to this product is simple. A person has different personality, characteristic also their favorites things. Aware of that, we facilitate them (the customer) to make their mug matching their own personality, characteristic or their favorite things. It is because they will use their mug every day. Therefore, to make their mug different from the other person’s mug we made their mug special for just one person. We believe that mug is essential. Because each day a person need drink to living their life as drinking water is main requirement as living thing, especially we as human. That is also our consideration to made mug-basis business. Even though there are some people who prefer to use glass or cup. But mug is more versatile for their uses to drink water, milk or even coffee. Our rivalries that had different business also give us advantages over them. The other 5 are main product are based on beverages and drinks. We also had joint venture with one of their company. The other advantages are only Accounting major that had entrepreneurship subject in this term. Which made us to developing our market even further. In the short term period, our objective is to achieve all of the target sale and satisfying the customer. The other which is outside business is to get a perfect score for this subject. For long term period, our plan is to keep in this business even the term is over. But it all depends on our progress in this operating day and our assessment report. In the end, I believe that I and our team are confident that this business will going well especially during in the operating day in this three weeks. We also will run the business with high spirit therefore we need support from everyone that related to this business. On behalf management and employee of Mumugi Corporation, I thank you for everyone that support and help us.

Yudistira Soepadmo Chief Executive Officer

03 07 13 17 21 27 “There is only one interesting mug: muMUGi. And don’t you forget it." - Prasetio Nur

37 59 79 85 99

Introductory Page

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Executive Summary

| Industry Analysis | Description of Venture

A. Name and Address of Company Name

: Mumugi Corporation

Address

: President University Student Housing Jl. Ki Hadjar Dewantara Jababeka Education Park Bekasi, West Java, Indonesia, 17550

B. List of the Entrepreneurs No. 1

Name

Student ID

Position

Phone Number

Email

Chief Yudistira

008201100111

Executive

082114431993

[email protected]

082114817477

[email protected]

085715560980

[email protected]

085721810978

[email protected]

085693579939

[email protected]

08999570766

[email protected]

081314472130

[email protected]

081316375994

[email protected]

081905810057

[email protected]

082123388788

[email protected]

089601678032

[email protected]

085717675902

[email protected]

Officer 2 3

Bintang Maratur Siagian Daniel Nikolas Tode

008201100047 008201100091

Nabila 4

Prajnaparamita

6 7

Prasetio Nur Rahman Daisy Wijaya Kusuma Tasya Annisa Faurika

008201100034

008201100001 008201100025 008201100017

Felicia Agnes

008201100016

9

Jessenia Pricillia

008201100013

10

Ervy Alvionita

008201100059

Apri Melida Purba

008201100027

Anandika 12

Kusumo

0082011

Prasojo 13

Jiang Kangping

Marketing Manager Resources Manager

8

11

Manager

Human

Leman 5

Production

0082011

Finance Manager Production Staff Production Staff Production Staff Production Staff Production Staff Marketing Staff Marketing Staff Marketing Staff

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Production Plan | Marketing Plan | Human Resource Plan |

14

Ridho Metaria

008201100098

15

Vinna Ye Hui Na

008201100009

Marketing Staff Marketing Staff

Assessment of Risk | Financial Plan

089635419617

[email protected]

087880263277

[email protected]

081284457425

[email protected]

Human 16

Elene Delfia

008201100121

Resources Staff

17 18

Kardini Marsella Gita Natalia Simatupang

008201100040

Finance Staff

085278699988

[email protected]

008201100079

Finance Staff

081315379053

[email protected]

C. Description and Nature of the Business Mumugi Corporation is a leading company that has a market selling on souvenir products especially mugs. The name of “MUMUGI” itself comes from the meaning of our product concentration which gives the priority to the customer to custom their own choice to be printed in their chosen mug that will make their mug looks more interesting. The idea of this company is to serve the customer unique and different mug with customers’ own design to be printed in their own mug. The idea of the uniqueness is that the photograph of the customer will be transformed in the form of caricature by the digital technology. The company’s target market is the teenagers and young adults inside of President University and also the outsiders of the campus. D. Statement of Confidentially The information in this document is confidential to the person to whom it is addressed and should not be disclosed to any other person. It may not be reproduced in whole, or in part, nor may any of the information contained therein be disclosed without the prior consent of the directors of Mumugi Corporation.

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Introductory Page

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Executive Summary

| Industry Analysis | Description of Venture

A recipient may not solicit, directly or indirectly (whether through an agent or otherwise) the participation of another institution or person without the prior approval of the directors of the Company. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and or publication of this material is strictly prohibited.

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Production Plan | Marketing Plan | Human Resource Plan |

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Assessment of Risk | Financial Plan

Executive

Summary

Introductory Page

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Executive Summary

| Industry Analysis | Description of Venture

Mumugi Corporation is a mug design company which operates in President University. It was established at January 14th, 2013. Mumugi is short term of “MaU MUG lagI” which means that we focus in mug business and encourage customer to buy more to us. In Industry analysis, examine our field in order to sell our product. We examine from target, culture, economy, technology, demographic, rival, demand and also our barrier. After we examined, we conclude that our product is affordable with most student in President University and also can compete in outside President University. In the description of venture, we stated our vision and mission of our company which will be our fundamental and basis of this company. We also stated our tagline, logo, reason for going into the business, location, product, equipment and also experience as an entrepreneur. Our vision basically is to become best entrepreneurship in our time. Make your mug interesting is our tagline which encourage customer to channeled their idea into their own mug as a design to matching their personality. Not our entire member had experience in entrepreneur but we want to learn to be one of the best. In Production Plan section, we listed our type of mug that we are selling and also our category of design. Even though the customer can freely design their own mug, we still make categorize in order to emerge their idea. We also stated our resource requirement in order to meet our sales target. The Gantt chart and production step and quality control we also stated in order to monitor our production time and quality. In Marketing Plan, Mumugi Corporation has included its market segmentation, positioning strategy, product strategy, marketing strategy that included research, marketing goals and strategy that included the 9P’s, SWOT and marketing monitoring. We also stated our media social address such in twitter, facebook and instagram. Because nowadays marketing without technology especially internet like an eagle that had eye sight problem.

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk | Financial Plan

In human resource plan, we listed and explain the job description and specification off all division and staff and also CEO. It also added by recruiting, orienting and training system which is to make employee can perform well. Rule and obligation also included to show the manager and staff what are their obligations and rights. It also stated the salary system, award system and punishment system. In assessment of risk, we assess 2 risks there are internal and internal risk. In the internal, our main risks are resolved in production and operational period. It is because in production period we used another company that we made contract with them. We cannot monitor the every single day. Also the risk for being they cannot meet our expectation. In the external, our main risks are another souvenir business that also produce mug with design on it but we can minimalize the risk because we are the only company that sell mug product throughout President University. In financial plan, we stated our company capital by the start of our company. In this section also we details every inflow and outflow of our cash in the company. We also made the statement of financial position, balance sheet and income revenue every week of our production and operation days and at the end of the sale. We also stated our sale forecast in three week of our operational and production day. In the appendix, the last section of this business plan, there are some example of mug design and mug type. We will also add the picture of our packaging and final packaging model that will be delivered to the customer.

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Introductory Page

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Executive Summary

| Industry Analysis

| Description of Venture

A. Economy Analysis Our main target are President University students, with their allowance that average IDR 1,000,000 per person, our price are considered relatively low and can be highly affordable for them. For those who outside President University, we also sure that our price compete with another mug company and also math with current Economic situation. B. Culture Analysis The Trend of ‘loving Indonesia’ and ‘romance’ will be trend in the current situation. The past coming film like Habibie and Ainun that hits still made ‘romance’ will be ‘trending topic’ and it will be real booming in the valentine days. As loving Indonesia, batik still be in our top priority to be designed in the mug. C. Technology Analysis Our company used digital printing sablon rather than manual sablon. Digital printing sablon is more sophisticated with shorter time to produce and pressing the production cost. We will also used social media like twitter, instagram and facebook to maximalized our promotion. D. Industry Demand Analysis We believe that our industry demand is high and potential. It can be seen even in our pra-production day, almost everyday we get new person that wanted to buy our product and seem enthusiatic. E. Competition Analysis As in President University, we sure that no one will be our competitor. Therefore we believe that we will the only one and we make sure to gain advantage on it. F. Demographic Analysis The specific target of business is the student in President University area. The age range of the target are between 18 to 21 years old. And also there are aproximate 1500 student who study in President University. Almost 60% of them are live in the dormitory and 30% are live near the Jababeka and 10% are commuter. 18

Production Plan | Marketing Plan |

Human Resource Plan | Assessment of Risk | Financial Plan

President University are international university, therefore there are some foreigner that majority come from China following by Vietam, Koreaand other nationality. As for Indonesia student, most of them are from Jakarta and Bekasi and followed by Aceh, West Java and others. G. Barriers Analysis Because we dont make mug and produce mug by ourself, our main barrier is from our supplier. Therefore our main barriers are from our supplier itself. If they suddenly terminate our contract or cannot fulfill our expectation it will be damaged our company.

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Description of Venture

Introductory Page

| Executive Summary

| Industry Analysis |

Description of Venture

A. Vision

Vision • To be a well-established mug design product in term of design

B. Mission

Mission • • • •

To channel customer's art through design of mug To produce innovative and terndy mug design togerherness as a foundation To serve customer as a number one priority

C. Tagline

Tagline • Make your mug interesting

D. Logo Philosophy

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Production Plan | Marketing Plan | Human Resource Plan |

Assessment of Risk | Financial Plan

A cup of “m” in every letter “M” is the symbol for our identity as the corporation produces mugs. Brown color means our warmth, comfort and safe side as a corporation. The big and friendly fonts mean that we have the strong, high willingness and spirit to obtain our goals. Two cups shows that our corporation has two main focuses, that are our customers and employees of the corporation. E. Company Hierarchy

Chief Executive Officer Yudistira

Production Dept.

Marketing Dept.

Human Resources Dept.

Financial Dept.

Manager

Manager

Manager

Manager

Bintang M.S.

Daniel Nikolas

Nabila P.L

Prasetio N.R

Daisy Wijaya K.

Apri Melida P.

Elene Delfia

Kardini Marsella

Tasya Annisa F.

Anandika Kusumo P.

Jessenia Pricillia

Ridho Metaria

Ervy Alvionita

Vinna

Felicia Agnes

Jiang Kangping

Gita Natalia S.

F. The Reason for Going to Business We establish this business because it is a project that must be fulfilled to achieve the grade in entrepreneurship subject from our campus. By going to this business we try to increase our entrepreneur soul and also we try to get money from our own business. 23

Introductory Page

| Executive Summary

| Industry Analysis |

Description of Venture

Like the proverb that elder always say, experience is the best teacher, we try to feel the experience become an entrepreneur start from our early age. By having the experience, whether it is succeed or failed, we hope it is a learning process to become a better entrepreneur in the future. This business is not a new business in mug design industry but we realize there are big opportunities that we can use G. The Product(s) Mumugi Corporation will produce a mug product based on the design. The customers can choose the design whether by the provided design or on their own demand. We provide only one categories of design which is University. The entire product is a pre-order (PO) product. We open the pre-order session for a week start from Friday until Thursday. We divide the pre-order session into 4 sessions. The first pre-order session start from February 1st, 2013 and the last preorder session end at February 28th, 2013. The last distribution of the product will be delivered on March 4th – 8th, 2013. H. Location Production and Storage Camp CEO’s house Jl. Menjangan 4A Blok R7/27, Kota Jababeka, Kab. Bekasi Selling Location Lobby B of President University Campus Canopy of President University Student Housing Selling Media Blackberry Messenger Twitter Instagram

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Production Plan | Marketing Plan | Human Resource Plan |

Assessment of Risk | Financial Plan

I. The Reason for Choosing the Location 1. Mumugi Corporation chooses CEO’s house in Jl. Menjangan 4A Blok R7/27, Kota Jababeka, Kab. Bekasi as the Production and Storage camp because his house is quite big to store the mug that hasn’t been distributed to customer and do the packaging. Also, this place is more flexible than President University Student Housing because it doesn’t have strict regulation. 2. Mumugi Corporation chooses Lobby B of President University Campus because it is the entrance before the students go to the classroom and can be seen from any floor. This place is also the assembly point of student in their interlude of study time. 3. Mumugi Corporation chooses Canopy of President University Student Housing because it is also the assembly point of the students that lived in President University Student Housing. This place is located near the gate entrance of female area, so we are certain every female student will see our product. J. The Experience of the Entrepreneur The members of Mumugi Corporation have been felt the experience in various type of business. They are famous in their own entrepreneur area, such as phone credit seller; fashion shop online owner; phone cover seller; dealing with many people; give the idea or opinion to the company and as marketers. Our member also has very good interpersonal skills such as reliable, time management, organization behavior and etc. We sure these experiences are very helpful for us to establish Mumugi Corporation and operate it well.

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Production Plan

Introductory Page

| Executive Summary

| Industry Analysis | Description of Venture

A. Production Team The production team is division who involve in process of the product from raw material to finish goods which is ready to sell. The production team consists of one manager and five staffs of production. The organization chart of production division is below: Production Manager

Bintang Maratur Siagian

Staff 1

Jessenia Pricillia

Staff 2

Staff 3

Staff 4

Daisy Wijaya

Ervy Alvionita

Tasya Annisa

Kusuma

Saputra

Faurika

Staff 5

Felicia Agnes

Production Manager and Staff 1 searched for vendor and make a comparison between one and others, and discuss with CEO in determining the vendor. Staff 2, Staff 3, Staff 4 and Staff 5 makes a design for Mug, consult with costumer about costumized design, and prepare the final design to be sent to vendor. B. Product specification The product of Mumugi Corporation is a mug. Mug is ceramics glass with a holder on the outer surface. Mug is often used for drinking water, coffee, or milk in daily life. Mug is everyone’s daily need, especially for PresUniv students who living in student housing. muMUGi has silk-screening on the outer surface of mug. Mumugi product is ceramics mug with size 10 x 7 cm and diameter 7 cm which has color white, yellow, and black. Mumugi product is designed by various printing theme and customized design, which consists of 3 concepts. There are Family, Vintage, and Events in February (Chinese New Year and Valentine’s Day). Mumugi production is providing the design of silk-creening and bring to the subcontractor (vendor) to print on the mug, and giving interesting packaging for ready to sell.

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk |

Below is the actual photograph of our product

Mug Type 1

Mug Type2

Packaging (Box, Ribbon, muMUGi sticker)

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Financial Plan

Introductory Page

| Executive Summary

| Industry Analysis | Description of Venture

C. Occupational Health and Safety Policy/Procedure to ensure correct

Occupational Health and Safety Guidelines

procedures are being performed

The mug is made by material that can be

The mug is made by ceramics and has no

used safely for food and beverage

sharp edge or surface.

The mug can contain hot or cold food and beverage Current & Potential Hazards existing in

Policies/Procedures to identify potential

workplace.

hazards in the future.

The mugs are fragile

The delivery and storage must be ensured that the mugs are safe.

D. Resource Requirements Material Resources

Laptops, design software, and internet modems

Mugs and printing Packaging (Boxes, Ribbon, Sticker) Car and gasoline (transportation) Equipment (glue and scissor) *selling target

Amount

Already owned

6

6

-

200*

-

200*

200*

-

200*

Boxes and packaging stuffs for the mugs.

-

For doing survey, buying material, taking and delivering the product.

1

1

2

2

Need to be purchased

How this item will be used for production and operation  The laptops and software are used for designing the mugs.  Internet connection is used for communication to subcontractor, and costumers.  To maintain the social media. The mugs are the raw material To be attched by silk-screening

Prepare for packaging

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk |

E.

Financial Plan

Key Supplier After considering the quality, price, and distance of subcontractors, we determine the best supplier for our production. SKETS Multikreasi (Mr. Imron) Jalan Kartini No. 45 Mawar 4 Margarahayu, Bekasi Timur Phone 085292566641

F.

Office, Storage, and Production Mumugi Corporation official office is in President University Student Housing. Mumugi meeting venue is in Canopy in front of SBH D. The storage and packaging process is done in B2-15 SBH.

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Introductory Page

| Executive Summary

| Industry Analysis | Description of Venture

G. Gantt Chart Production

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk |

Financial Plan

H. Production Step activity

Pre Order

Preparation for Design

Order to supplier

Picking Pre order 1

Packaging

Distribution

Action Offer the mug to costumer by personal selling Consult and take the order from costumer Prepare the final design of each costumer order. Give the final design to subcontract or venue Pick the finished mugs from supplier venue and storage

Resource needed

Time taken approximate

Place

Catalog CD / Laptop / Gadget To show the theme

10 minutes

By social media or coming to supplier venue

Laptop / Gadget To show the theme

10 – 15 minutes

Coming or meeting to supplier venue

Laptops Software Design

10-15 Minutes per design

Student Housing Canopy

Transfer by flashdisk and transportation

1 hour

Subcontractor venue

transportation

A day

Subcontractor venue and student housing

Do packaging

Boxes, ribbon, sticker, glue, scissor

Distribution to costumer

Done by staff

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Approximat ely 5 minutes per each Approximat ely 10 minutes per each

Student Housing

Student Housing Canopy

Introductory Page

| Executive Summary

| Industry Analysis | Description of Venture

I. Flow Chart Diagram

Contact Supplier

Buying Mug

Customer

Order To Supplier

Consult Design

OK

Packing

Defect

Customer r

Rexeiveing Quality Control

J. Quality Control and Managing Risk Quality control we made is feed forward control, concurrent control, and feedback control. In feed forward control, we choose the best mug supplier and printing vendor in quality and price consideration. In concurrent control, we ensure that the printing vendor doing the printing for the right order and quantity. We clarify and check the order when we pick the order form the vendor venue. Until we get the mug in step 5 (in flow chart diagram), we ensure the quality whether the product is safe and correct with the order by production staff. The last step is getting feedback by costumer by phone or when delivery time is done. K. Product Delivery We deliver the product after quality control and packaging process. We deliver the product by doing pre-order. After the product is ready to deliver, we distribute the product in open stand or deliver directly to costumer. L. Selling Price Product

Selling Price

Mug type 1

Rp. 30,000.00

Mug type 2 (Couple, two mugs)

Rp. 70,000.00

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk |

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Financial Plan

Introductory Page

| Executive Summary

| Industry Analysis | Description of Venture

One of the essential divisions in the profit orientation corporation is marketing division. The area of this division is to introduce, promote, influence, and follow up that related to the circulation of the product from the organization to the customers. Marketing is one of others department which bring the money in, so that marketing is the essential division which related directly to the customer. A. Marketing Objectives and Goals Our marketing objectives are to be the most sell known merchandise company and also become the company which provides the stuff that able reflect who we are from our Mug that we use. It may become their silent representative of their self to the other, without any word that came out, they’re already know about their interest, mayor, name, hobbies, and many others. 1. Marketing Objective In order to achieve the best merchandise company, we will explain the 9ps, which are Product, Price, Promotion, Place, People, Process, Physical Evidence, Packaging and Payment. Product Mumugi Corporation offer a Mug with Varian of design and form, design of football team, cartoon and the form is in the “love” form, and others. Price We try to adapt the price of this product to the student pocket, means we try to search the suitable vendor to make it affordable for the potential buyers. Promotion To successfully grab the target market, we integrate the marketing communication mix, that consists of advertising, personal selling, sales promotion, public relations, and direct marketing. Of the marketing mix, we choose 4 as our promotion strategies:

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk | Financial Plan

a. Advertising We promote our product; inform the promotion program, our location through some media, such as social media because these media are spread in all area, and mostly read by people. We also spread the flyers to the surrounding people, such as President University students, employees, etc. b. Direct Marketing To reach the customers directly, we’ll use the social media as our promotion strategy. At the beginning of our business, we get customers through membership to know their contact number and email address. If

there

is

any new promotion program or special events, we will inform them directly through the social media (by phone, SMS, email, twitter, and facebook, instagram) Place Mumugi Corporation is located in Jl. Menjangan 4A blok R7/27, Kota Jababeka, Cikarang. Our main consideration to do this business continuously because it has a lot of order from other customer. And for the business distribution, is jabodetabek. We spread our product through a personal approaching that doing by ourselves. The distribution range to cover, Jakarta, Bekasi, Depok, Tanggerang and Bandung. People Our company relate to costumer by personal interaction. For most of costumers have been known by us, we use personal approach to introduce and offer the product. To reach others consumer, who are not known by us, we use social media to introduce and offer the product. We also maintain relationship with costumers by keeping contact with them. We inform them when the product is done and can be delivered to them. To have a good relationship, we ensure the quality and quality of product ordered is right and the product is match to what they have ordered. We believe that, when we can satisfy their wants and needs, we can maintain good relationship with costumers. 39

Introductory Page

| Executive Summary

| Industry Analysis | Description of Venture

Through this strategy, our teams not only maintain the relationship between us and customer. But also about influencing them to promote our product to another people. So that can affect to our revenue. The way we influence them are with provide them the best service and product so that coming up the satisfaction from the customer and their will spread the good information about this through their colleague. We strongly believe that all of thing happen based on what we have plan before, and the current customer possible to buy more or event they’re not buying another product but their feeling satisfy enough at least, so that we can use that indicator to stick in the same managerial action to sell our product. Process The process that we plan are, first we record the demand of the customers want which ‘are the design, from of Mug, color, and number of Mug. Then we make the design that wanting by the customers, then we send the design to the vendor also coming with the type of the Mug, form of Mug, and color, then the vendor produce it, then send it to the us as the finished goods. Physical evidence The physical evidence that we use as the legal document of payment is, receipt to the customer, and also receipt document from the vendor. Packaging The vendor provides us the box for each delivered to the customer, and also we decorate those boxes to make it more interesting to increase the customers satisfaction.

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk | Financial Plan

Payment Term of payment that we apply for customers are, with cash and receipt as an evidence of payment. And for the vendor relationship, we pay in every week, means the vendor provide us a “deposit” of Mug 60’s Mug to sell to customer, and hopefully if we can sell more than 60 in a week, then pay all of the Mug that we buy in that week to the customers. 2. Marketing goal The goal of this division is to achieve the satisfaction of the customer without sacrificing the quality and also create a problem for us because reducing the number of sales. B. Marketing Research 1. In your daily life, what tools do you prefer to use in case of drinking? a. Fiberglass b. Cup c. Mug

Tool to use Fiberglass 18%

0%

Mug 62%

Cup 20%

From 45 respondents, most of them choose mug because mug is easy to find. People can buy mug in all of super market or even in traditional market. The shape of mug also the reasons why people are prefer to use mug than fiberglass and cup, because mug has quite big size.

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Introductory Page

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2. Do you have your own private mug? a. Yes b. No

0%

No 8%

Private mug

0%

Yes 92%

From 45 respondents, most of them have their own private. They are buy mug for daily use in house or dorm. Sometime they buy mug only for their self, they use the mug in their house or even they buy mug only for their collection. 3. In case of buying a mug or cup, what criteria do you consider? a. Design b. Price c. Size

Size 4%

Criteria 0%

Price 38%

Design 58%

From 45 respondents, most of them choose design as their criteria to buy a mug. Most of them want to buy a mug with interesting design than a plain mug. They think it is okay if they pay more to get a mug with interesting design that they want. Only several people mind about the size if they want to buy a mug.

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk | Financial Plan

4. Do you interesting with a patterned mug? a. Yes b. No

0%

Interesting with a patterned mug 0%

No 25%

Yes 75%

From 45 respondents, most of them are interesting with a patterned mug than a usual mug. They think a patterned mug is more interesting than a usual mug and they want a different pattern because they want a unique mug. 5. What kind of design do you want? a. Couple design b. Football/basketball team c. Plain d. Custom

Kind of design

Custom 67%

Plain 18%

Couple design 9% Football/ba sketball team 6%

From 45 respondents, most of them choose custom design because they can use their own design to print in their mug not only a usual mug. Several people choose plain design because they prefer to a interesting pattern/ shape of a mug. 43

Introductory Page

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For couple design, they choose because they want buy a mug for a gift for their boyfriend or girlfriend. For football/basketball team, they choose because they a fans of a football/basketball team. 6. How often do you buy a mug? a. Every 2 months b. Every 6 month c. Every a year

Every 2

frequention of buy a mug month 0%

4%

Every 6 month 7%

Every a year 89%

From 45 respondents, most of them choose every a year because usually mug has a long life time. People can use their mug until the mug is broken so they only buy mug every a year or more. For every 2 month and 6 month, they buy mug because they want to add their mug in their house or dorm or they buy mug for their collection. 7. In range of Rp 15.000 to Rp 30.000 (for the price of mug), is it affordable? a. Yes b. No

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk | Financial Plan

0%

No 11%

Affordable price 0%

Yes 89%

From 45 respondents, most of them think range Rp 15.000 to Rp 30.000 for a mug is affordable for interesting mug with a custom design. They think that price range is okay because they will get a mug a design that they want not just a usual mug. For people who not agree with the price, they think that because they usually the only buy a usual mug with a cheaper price. 8. What is your response toward a mug if there is a mug that has a design according to what you want? a. Buy b. Consider to buy c. Not buy

Not buy 0%

customer responese 0%

buy 24%

Consider to buy 76%

From 45 respondents, most of them consider to buy that mug because they think that mug is an interesting and different with a usual mug. That mug also fills the customer need about an interesting mug. Customer can buy a mug with a design that they want.

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Introductory Page

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C. Business SWOT This section presented our strength, weakness, opportunity and threat of this business and product. 1. Strength This part presented of our positive point of our product and possible the reason of a customer to buy our product. Unique and innovative design Mug is product from Mumugi Corporation with have innovative design and that design base on what customer wants. The modern unique designed become the strength from our product because it will make the product interesting and many customers want to have it. Limited edition Our product is difficult found in market area, because this kind of product is only design one it’s all because the design based on the customer want so that there aren’t another mug distributed. General market We sell ceramics mug which is needed and can be used by all people. Meaning to say, all of people whether they’re young or not, it doesn’t gender factor of product, and not belong to several indicator of demogration. So it’s open free for every people. And also for them who aren’t looking for a good design they’re possibly buy our product through a plain mug.

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Many functions Some of people does not use Mug only for the tools to drink but it can become collection or for some people this kind of mug to cute to use for a drink so that they’re use this as a standing box of stationery, or even just a display product to be proud of to another person who see it. It’s possibly become our prospective market to sell this kind of product. Primary tools Drinking is necessary for all peoples. In order to reach the comfortable drinking, people using a media to help them to drink. So that we are possibly sell this product through a plain mug to people who need a media to use for drinking 2. Weakness First thing first, this section wrote on the weakness of this product, also may cause an obstacle for us, but, we strong believe that we can turn this weakness into our opportunities and changing it into “sells call”. The physical form of the product is fragile Commonly, stuff like glass and plate are made of a fragile raw material, so that such this product organizes the raw material as our weakness. Secondary choice for drinking Meaning to say that, mug is the secondary tools for drink because in the top of mind of people usually using a glass to drink rather than a mug. Expensive The third one is the most consideration part for potential customer to buy something. This kind of business is kind of a massive production. Means if the customer’s order in a large numbers it’ll reduce the cost of the product. But, in this kind of business and remembering the area of distributing, customers tend to buy a single mug rather than to buy in a large number. So that, it’ll be the most tricky part of this business, and we try to find the best way and the best vendor in order to achieve the lowest price. 47

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Length of time to produce To produce “on the road” mug, it might be taking a long of period comparing to the another business around the President University, so that it might be an obstacle for us to run this business even for the customers who want in fast production and fast delivery, so that we try to do everything correctly to avoid the more time spend for producing the product. 3. Opportunity Expand product range We can expand the product range overwhelming others food utilities, such as plates, bowl. This is also our future plan to expand this “design” business, as we see that there isn’t much of business who sells a patterned bowl. Fulfill the market need of mug “There aren’t ivory which isn’t cracked”.

We try to implement this old

Indonesian quatrain in our business. Means, there are always a market for every product, even there are a monopoly rules as long as there are a costumers consume it. Even, the customers who buy this kind of product in a small area, but there is still a transaction happen. Providing mug based on their interest Hearing what customer want and fulfill what they need, means we try to produce a product based on what customer want, even a single customer want, we try to listen what they want in order to provide the best services and provide the good product that may affect to the satisfaction of customers. 4. Threats Aggressive marketing by competitors The marketing have to promote their own product with various methods. Such as advertising, social media, sales promotion, and so on. So, the customer will know how the marketing promote their product, and the customer will consider to buy the product. This kind of product which sell, to customers aren’t a new product which wanted by the all people. 48

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This kind of product is exist already in the society so that we try to implement the different marketing strategy from others and hopefully for this kind of popular product may influence the customer to buy because of the marketing strategy. Similar business opening There are so many competitor has produce this kind of product with their own speciality although the product is same. We are focusing in the design, but have a similar function of mug, but some factor that we sell is the design which based on what customers want. Competitors have superior access to channels the distribution Penetrating to this kind of market is the trickiest part because there are already the same corporations with the same price, different marketing strategy, but with wide channel distribution even with relations through loyal customers. D. Market Segmentation For the segmentation purpose, we have several groups that may be interested in Mumugi Corporation. 1. Demographic segmentation Our customers who live in President University area and outsider will be categorized into several groups, such as teenagers, young-adults, and also adults. Then, there are categorizing based on occupation such as students, lecturer, and PU staff and also the citizens in the surrounding area. Based on this categorizing we can identify that several potential buyer, student is our market segment because a half of PU student living in the dorm, so that their threat their dorm as well as their home that means they have to have stuff that can support them as well as when they home. So that we can identify mug is one of the important thing to have, despite they bring their own glass, but some of them prefer to use mug.

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We also directly offer our product to students in President University who most of them live in Dormitory. It will make us easier to achieve the customer because our product is not too expensive so it is still affordable price for the students. We also want to offer our product to lecturer, the securities in campus and dormitory. 2. Psychographic segmentation Our product is a daily utility , so for the social class we focus on lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, upper uppers; because almost every people need and can buy our product. Students are categorized as lower lowers class, because they have not had their own money yet. But we can assure that they can buy it for themselves. We believe lower lowers class can buy it, above all upper uppers class. And also an identification of psychological manner may create a “selling call” for us. For instances the cuteness, pride, beautiful, and so on. Some others potential buyer may do a buy not only based on the function of the product but it also because of the other reason which can influence them to buy. Such as the packaging, the attracted design. So that we can identify this part is taking a role to play in psychological side of the consumer, and there are always a market for a product that doesn’t really necessary for them but success to attract them. 3. Geographic segmentation We sell the product at Cikarang and other city such as Jakarta, Bandung, Bekasi, Depok, Tanggerang and so on. In campus and dormitory of President University we will directly offer our product but to outsider we will use social media like FaceBook and twitter to introduce our product and send their order to their own address. We will give the sample photo of our product and also many kinds of design and they will choose one from our unique design.

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This geographic segmentation just taking the small part of java, because the limited time of this study so that we are just sell our product through nearby of several area that we can reach. E. Customer Profile (Target Market) Based on the segmentation above, our target groups are President University market area and Outsider. President University area and outsider area such as students and President University staffs, lecturers, friends from others universities, and family. They are the most prospective customers since their numbers are quite large in President University. The students are mostly from President University. Not only them, but also from others universities that have a relation with us, like old friend in senior high school and family that live in outsider. Also employees or people that have relation with us may also consume or buy this product. Our product is widely open for all customers. Means, this kind of product is suitable for every one reminding that all of the people need a tool to drink, and more specialized this product also focusing through the customer who wants a particular design through their mug, to describe who they are with a different way. F. Positioning Strategy From the table presented below, we can analyze the major competitors’ product. Those columns help us to identify what party which selling the same item like we do, and also determine the way we act and promote our product. The second column is lists of threats from our business, it means we know already our “standing rock” in front and we are optimist that we can turn it into the opportunity and transform it into our strength. The third column shows our opportunities for us that we can convert it into earning that we can earn.

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Major Competitors, Products/Services they offer, Price

Opportunities of our Threats of your business

business



Giant



Many competitors



New innovation



Carrefour



New comers



Local competitor have



Super Indo



Lack of trust



Lotte mart



Lack of capital



People need our product



Traditional market



Seasonal demand



Provide mug with

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Mini market



Price wars



Street vendor



Competitors have



Do cooperation



Online shop

superior access to



A developing market



Personal seller

channels he distribution 

Predatory vendors.



Higher expectation

usual product

different way

such as internet 

Changing customer point of thinking

G. Product Strategy Mumugi Corporation tries to come up to produce a mug with an attractive design and favored by consumers. Our products enable for our customer to gather ideas and options and accomplish their decorating goals. We will be able to create a look that is truly unique .The products we create is different from the other products. The advantages that exist in our products are we have a variety editions mugs that we offer to consumers. Consumers may choose the designs that we offer for the customers or customers can also choose the design according to what they want. Other competitors can’t do the same as we offer to consumer. Mumugi Corporation provides many features that we have to offer to consumer, such as:

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

Coffee lovers



Family packet



Valentine packet



Couple packet



Chinese New Year edition



Major



Vintage



Word



Customer’s request



Plan mug

For coffee lovers, tea lovers and hot chocolate holic, they usually use a cup for drinking is commonplace, but by using a mug that is a different matter, or a new way to drink coffee and tea especially with the unique design and attractive mug. You will feel different with our product. And it’s also has another value to describe or even represent the one who grab those mug, through a design which engrave on it. So that, the mug is also as a “silent promoter” of the owner or as a simple analysis for self description of the mug owner without any word. H. Marketing Strategy Marketing Strategy 1. Social Media Nowadays is a globalization era. Which means almost all of the part of this life grow up two times faster. Especially in the internet world, which grow ten times faster than the real world. So that we try to utilize this kind of condition to promote our business through the most effective media to promote. We have a twitter account to promote this kind of product, and also we develop the facebook account for this product so that we can promote it. Instagram is also become our silent representative of marketer to promote our product.

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2. Banner and Poster As an opening step, we print a banner to introduce our existence to the potential customer, as a first step we try to get the intention from the customer, and as we plan before this kind of step really, really capture their attention. And for the next step, we’re planning to place a poster in the information board whether in the dormitory or campus. 3. Special Event. The life time of this business from January till end of February. Then we notice that there’re 2 main events in the due date that we can change into sales call. That is Valentine and Chinese New Year. Valentine is always related to the “love and caring” isn’t always special for couple, but it’s also special for everybody which have somebody that they love. So that we provide the couple Mug for this special event so that they can express their love. The second event is Chinese New Year. For this, special event we provide the special Mug that patterned with “snake” which will be the symbol of this year. 4. Pricing strategy. Most of the customer put price as the number one priority when they are trying to buy something. So that we provide them several ease in the price, in order to reduce the concerning of the customers. There are several way to reduce it, which are: a. For the first 20buyers, get the bonuses in form of voucher worth for Rp.5000. b. Reducing the price, when they’re purchase in the big number of Mug. 5. Endorsing for the entire major. This kind of strategy is we use to get the customer from the all of major which want to show who they are. Means we ‘aren’t going to use they’re PUMA logo, but we try to describe their character. For instances, for those of them from accounting major we will patterned the mug with a trial balance, or financial report, or calculator. The other example for those of them who from VCD, we patterned it with a picture of people whose drawing or designing something. 54

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I. Monitoring and Improving Marketing Performance Monitoring is one of the important things that should be noticed by the company. It is to make sure that the business is running well, to maintain a strong relationship with the current customers, even the employees, suppliers, government, media and also local people. But, this short business doesn’t really necessary to monitor the relationship of the corporation to the government or media. Because it’s tend to a big corporation who can develop a relationship like that. Focusing of our monitoring and improving is in the customer relationship, customer feedback, employees, and supplier. There are some ways in our controlling: 1. Customers feed back To know the satisfaction level of the current customers, we ask them directly whether their feeling satisfy or not and via email to the customers. Through this way, we can reflect our strengths and weaknesses, identify the customers’ needs and wants, and finally do the improvement for our business. Through this kind of action we are possibly determine the weakness of our product so that we can directly solve that product so that another potential buyer who will be buy later won’t feeling unsatisfied of our product. 2. Give rewards to employee To appreciate the hard work of the employees, we have a reward system to show our respect and gratitude to our employees and also to motivate them to be loyal. For those who perform exceptionally well, we will give him/her a badge “ Best Employee of the Week “, “Best Employee ”, “Best Award” through this appreciation that we hope the employee who get this reward can’t be more motivation before to get another reward and maintain the performance still up. But this kind of motivational action is also may affect to the another people who aren’t get the reward to increase their performance to get intention from the manager and get the reward. However, we also need to evaluate if they do not work well. 55

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There will be a punishment for bad performing employees, such as giving a warning, additional mug to sell, extending working hour, or even deducting their salary. 3. Recheck every line in our promotion Sometimes we will find some mistakes in publishing any information related to our business. In that case, we need to recheck every single word which causes miscommunication. Check the efficiency of current suppliers to survive and thrive in this the business, we cannot entirely depend on only one supplier because we never know what will happen in the future. Perhaps someday they will face the scarcity of raw materials. By having more suppliers, we can have more options to choose the most affordable raw materials needed. Meaning to write is we need also create a good relationship to supplier not only one supplier but more than one to prevent if there is an action that we never plan before.

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Human Resource Department is a supporting part in establishing a company. In Mumugi Corporation, the Human Resource Department is attempted to keep all company’s interest goes well and still in line. Moreover, the strategy’s aim of Mumugi Corporation’s Human Resource Department is to build a discipline, high-effective work performance, and high-dedicated human resource of the Mumugi Corporation that will produce the best employee performance to the company in the near future to reach vision and mission of Mumugi Corporation. Thus, the work plan of Mumugi Corporation’s Human Resource Department consist of; Organization Structure; Job Description; Job Specification; Recruiting, Orienting, and Training; Salary System; Rules and Regulation; Reward and Punishment. A. Job Description 1. Chief Executive Officer Purpose The CEO is responsible for all of the part of the company itself. CEO is being responsible for the structure, regulations, developing and other main activities that related to achieve the goals. Scope The CEO is responsible for developing and effectively implementing the vision for the company ensuring the appropriate program design and support mechanisms are in place. And also CEO provides vision, energy, and commitment to advance the Company and its business model. The CEO has a big range of responsibilities and accountabilities that contribute to the overall achievement of the company. CEO is the leader to be responsible to all development of a company. Responsibilities There are several responsibilities of the CEO for a company: 1. Developing a structure of the company Main activities:

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a. Decided to develop the structure of the company and working together with the Human Resource Department in the selections of all the staff for the company. b. Responsible and has a right in the managing the structure itself. c. Has a responsible to develop the regulations of the company also joined in the process of budgetary limitations for the salary system’s budget and also the compensation. d. Has a right to give direct command in the process to achieve the goals for the company. e. Providing strong and effective leadership to all employees, the incumbent creates an environment which attracts and retains appropriate talents. 2. Monitor all the result of the projects Main activities: a. CEO has a right to get information from every department about the result of the projects and has a responsible to give an advice also direction for the steps in the projects. b. Maintaining the result of all the projects moved as the planned. c. Has a full right to hired or fired employees or other staffs, supervisors or managers. d. The CEO ensures the effective communication of the company’s strategies, objectives and performances to create a positive company profile. e. The CEO is responsible for ensuring that the Board of Directors has all the information necessary to properly. Working Conditions 1. Physical Demand The CEO should have a strong physical demand in his or her life. The CEO should have to identify opportunities and proposes new methods of improving the ability to achieve the goals.

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2. Environmental Condition The CEO may find the environment to be hectic, competencies with other competitors, busy to sign the approval for each department and also must have a stress ability management in this condition. 3. Mental Demand The CEO must be prepared for the best thing could be happened or for the worse thing that could happened (gains or losses). 2. Human Resource Department Purpose The Human Resource Department is responsible for providing support in the various human resource functions, which consist of recruitment, staffing, training and development, performance monitoring (giving a reward or punishment) and employee counseling. Scope The Human Resource Department provides advice and assistance to supervisors and staff. This may consist of information on training needs and opportunities, job descriptions for each department, performance reviews and develop some policies or regulations for all of the staff. One of Human Resource Department’s scopes is in the recruitment process. This department is being responsible in the monitoring all of the staff in their jobs. The Human Resource Department provides advice and support to supervisors and staff selection committees and ensures that they have accurate and timely information in order to make effective decisions. Responsibilities There are several responsibilities of Human Resource Department 1. Provide support to supervisors and staff in develop their own skills and capacity in their jobs Main activities: 62

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a. Ensure the accurately job descriptions are in the place. b. Provide advice and assistance in the human resource plans c. Provide training and developing skills for all supervisors and staff. Make sure that they could enrich the capabilities of their own jobs to reach the target. 2. Monitor staff performance Main activities: a. Giving a reward for those who could give the best performance in the period that already specified. b. Giving a punishment for those who break the regulation that already agreed. c. Monitoring daily attendance d. Investigate and understand the reasons of staff absences with notes the reasons is already approved based on the regulation e. Schedule meeting to inform all staff Working Conditions 1. Physical Demand The Human Resource Department should have to work odd or long hours at a time to monitoring all of the supervisors and staff also complete special request or projects. 2. Environmental Conditions The Human resource department may find the environment to be busy, noisy and will need excellent organizational and time and stress management skills to complete the required tasks. 3. Mental Demand The Human resource department will have to monitoring staff’s performance and tasks at one time and must be prepared to deal with emergencies and stressful situations at any time.

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3. Production Department Purpose The Production Department is responsible to provide the vendor of the product for the company itself to serving the Mumugi’’s products in a form of mugs. Scope The Production Department provides mugs that needed for the market of the Mumugi Corporation and also responsible to monitoring the production, ordering, design, and everything that related in the process of the mug itself. The Production Department’s scope is in the design and stock products process. This department is responsible in the monitoring all of the staffs in their jobs. The Production Department provides advice and support for the production process and maintains the delivery to be delivered as the ordered. Responsibilities There are several responsibilities of Production department 1. Orders Product as requested. 2. Receives product deliveries, ensuring order and invoice accuracy. 3. Stocks product according to department procedure. 4. Maintains the quality of the product it self 5. Trains other staff as needed. 6. Maintains knowledge of produce, provides information to customers regarding use and preparation. 7. Assists in other departments as needed. 8. Achieves established goals and expected results for the department. Working Conditions 1. Physical Demand The Production Department should have to work long hours at a time to monitoring all of the process of the Mumugi Corporation’s production. The Production Department should be handled by conscientiousness person to make sure every order is same as the ordered (design, prices, and amount) 64

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2. Environmental Conditions The Production department may find the environment is a hectic and must be has a good relationship with the vendor and will need excellent organizational and time and stress management skills to complete the required tasks. 3. Mental Demand The Production department will have to monitoring vendor and staff performances in the production process. Self-efficacy is needed to make sure the individual’s belief concerning their ability to perform specific tasks successfully. Has a good stress management too. 4. Marketing Department Purpose The Marketing Department is the one of department that purposed to develop a target market also increasing the sale of mugs for the Mumugi Corporation. Scope The Marketing Department works closely with other employees such as advertising, market research, production, sales and distribution staffs. They are responsible to disseminate marketing existing products to achieve the target for a period that already decided. They are responsible in the relationship with the customers itself and must build a good personality to build a good relationship with the customers. Responsibilities There are several responsibilities of Marketing Department: 1. Promotional Activities Main activities: a. Develop unique and good strategies to do a good promotion. b. Has a strategy to build a market in their target market c. Provide training and developing skills for all marketing staff to increasing the promotions and the capability of Mumugi’s mugs demand.

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2. Monitoring staff performance Main activities: a. Has a clear target for each staff (for the example, one promotion how many mugs that marketing department could sale?) b. Has a routine meeting to discuss the promotion’s developing or the new strategy to increase the orders. Working Conditions 1. Physical Demand The Marketing Department should have to work in long hours at a time to do the promotions activities. Stress management should be needed. 2. Environmental Conditions The Marketing department may find the environment to be hectic that fulfill with the demand of customers curiosity about Mumugi Corporation itself. The Marketing department should have to be prepared giving a more power in the promotions process and giving the explanations clearly for the customer with the good personality too. 3. Mental Demand The Marketing department must have a humble personality to prepare the capabilities of ignoring from the customers. The Marketing department should have a charismatic personality to make sure the customers for buying the Mumugi Corporation’s products. 5. Finance Department Purpose The Finance department is responsible for maintaining financial, accounting, administrative and personnel services in order to meet budgetary limitations.

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Scope The Financial Department is responsible for preparing financial statements, maintaining cash controls, preparing the payroll and personnel administration, purchasing, maintaining accounts payable and managing office operations. Responsibilities There are several responsibilities of Finance Department: 1. Administer and monitor the financial system Main activities: a. Develop a preparation of the budget. b. Monitor cash reserves and investments. c. Maintain the purchase order system. d. Maintain financial files and records. e. Monitoring the cost that needed for the production department also marketing department. f. Monitoring every department’s budget and make sure the cost that must be paid is not more than the budget. g. Maintain the payroll system. Working Conditions 1. Physical Demand The Finance department will have to spend long hours sitting and using office equipment and computers. 2. Environmental Conditions The Finance department may have to manage the expenditures and the entry in the balance line that is no losses but it must be gains. Finance department may find the environment to be busy, noisy and will need excellent organizational and time and stress management skills will be needed.

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3. Mental Demand The Finance department must to have a good stress management in this department stress maybe caused by the need to complete tasks within tight deadlines and also the accuracy of the budgeting plans. B. Job Specification 1. Chief Executive Officer (CEO) The CEO should have a several specification that categorizes them as a CEO for a one company. The specifications of CEO are: 1. Demonstrate leadership, management and organizational skills. 2. The ability to think, and operate strategically. 3. Enjoy the leader position. 4. Has a charismatic management or leadership style. 5. Could be responsible for every possibility that could happen in the process to achieve the goals. 6. Have a self-efficacy and a strong personality (dominant). 7. Has a capability to manage every department neatly. 2. Human Resource Department The Human Resource Department should have a several specification that categorizes them as a human resource officer. The specifications of Human Resource Officer are: 1. High developed, demonstrated teamwork skills. 2. Could develop some regulations that will be used and become a reference for every performance from all staff. 3. Experience working in a flexible, employee empowering work environment. Structured or large company experience will not work here. 4. Experience in organization development and change management. 5. Has ability to monitoring all the employees or staff’s performances. 6. Has ability in investigating the right things or wrong things in the staff’s performances. 7. Responsible to develop a specific and formal regulations for each department or has a capability to ensure all of the department’s job descriptions. 68

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8. Develop and administer goals, objectives and procedures for assigned area. 9. Manage, coordinate, and evaluate the work of assigned staff. 10. Communicate clearly and concisely, both orally and in writing. 3. Production Department The Production Department should have a several specification that categorizes them as a Production Officer for a one company. The specifications of Production Officer are: 1. Ability to match product to requirement. 2. Negotiating prices with the vendor and agreeing delivery dates. 3. Able to identify source of problems that result in production issues. 4. Communicating accurate and timely information to the vendor to reduce the capability of late delivery. 5. Knowing market price of components. 6. Totally responsible for accurate and timely information being recorded. 4. Marketing Department The Marketing Department should have a several specification that categorizes them as a Marketing Officer for a one company. The specifications of Marketing Officer are: 1. Must be a creative person to develop many promotions strategies. 2. Has a good personality to serve the customer in the promotion events. 3. Have excellent communication skills to promote the products of a company. 4. Knowing and has an ability to analyzes the target market situations also the competitors. 5. Has the good looking appearance. 6. Has an ability to persuade people or customers. 5. Finance Department The Finance Department should have a several specification that categorizes them as a Finance Officer for a one company. The specifications of Finance Officer are: 1. Has an ability to develop budgeting plans. 69

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2. Have skills in the financial problems to manage and reduce the capabilities of losses. 3. Have an accounting and bookkeeping skills, decision making skills also analytical and problem solving skills. 4. Has ability to develop payroll systems and reporting. 5. Has an ability to serve the excellent and trusty Financial Position and Income Statement of the company. 6. Has to be the trustworthy person. C. Recruiting, Orienting, and Training Mumugi Corporation has recruited the most-competent and hard-working persons to cooperate with. Every employee has settled in the right position and division based on their natural ability, skills, experiences, and willingness to do the job seriously by giving all the best effort to the company. Mumugi Corporation has four departments that handle and help the company to grow and develop more. They are Production Department, Marketing Department, Human Resource Department, and Finance Department. Together with the CEO and all staffs we will create the best startup company with high dedicated employee in it. For those who are settled in the Production Department, they have to be an expert to know all the products we will produce. They are the ones who know, understand, and responsible to the material needed for production, link with the supplier to cooperate on producing the products, design and responsible for the packaging of products, and deal with the initial price of our product to the supplier. They should know the quality of product that will be marketed, and also be the ones who know and understand all the sending shipment and delivery terms from the supplier. Manager and staffs of Marketing Department should be the ones who can attract customer as many as possible. They should have an excellent communication and marketing skills in order to market our product widely, in our university and even to the outsiders of our campus. They should also cheerful, friendly, and warm persons, because their jobs are likely to connect with the customer of the company.

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Manager and staff of Human Resource Department should be the ones who are highly-discipline and can discipline other employee. They should have a highlydiscipline behavior, high-dedicated to the job, and also have a good communication skill. They also have to posses the skill to assess all the employees in the company, because Human Resource Department is the one who will rate and evaluate all the performance performed by all the employee of a company. This department will be the one who give the reward for the good and discipline employee, and give the punishment for the indiscipline employee. For the Finance Department, both the manager and staffs should be the ones who are discipline, high-dedicated work person, and trustworthy. Those who work in this department have to perform a well-organized and managed work result. Also, it will be better if they possess an excellent and wide knowledge about Financial Management and Accounting skills. D. Salary System Definition Salaries systems are a set of steps, policies and practices employers use to pay employees for their work. Salary systems consist of more than producing a weekly, biweekly or bimonthly paycheck. Components of a salary system range include everything from pay scales to the method employers use to reward employees for performance. Salary System Objectives The objectives of salary system are to: 1. Pay each position fairly, based on the function and the level of the difficulties of their jobs also matched with the budgetary limitations. 2. Provide bonus for those for could give a prepared great performance. 3. Pay each position based on their background (graduate from high school or university) based on their knowledge, skills and responsibilities.

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Develop a salary system Business Planning In the business development employee salaries are part of the earliest stage. Before creating a formal business plan, the business owners should have to calculate salaries in the operational expenses. These are usually rough estimates, however. They are figures typically based on a cursory review of salary levels for the types and numbers of employee roles for the initial business phase. The salary system is definitely a component of the financial records and projects that owners present to potential lenders and investors. Workforce Key elements within a salary system are workforce skills and qualifications. The owner should develop a job description for each position and give a value to those jobs through an evaluation process. The evaluation process determines the value and functions of that job to the overall organization. For example, a wholesale goods company would likely place greater value on its sales positions and shipping department jobs than a facility manager position. Pay Scale Before the company hires its first employee, it constructs a pay scale. Pay scales are subject to change based on production demands and workforce planning; however, initial pay scales may be modified once the business completes the employment process by hiring its first employees. The manner in which employees are going to be compensated is the first consideration in a salary system. Provide bonus for those for could give a prepared great performances is the important part to in developing pay scale for salary system.

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Compensation Research In the process of developing a salary system, the owner must do some compensation research goes into developing a salary system, or compensation structure. Research consists of comparing the organization’s budget and staffing needs to market salary rates, competitors’ compensation structures and the skills and qualifications of the existing workforce. In addition, the skills of future workers’ also must be considered to ensure the company’s future business needs can be addressed and so employees are compensated in a fair and equitable manner Pay Structure A compensation structure consists of starting wages, cost-of-living Increases, annual raises and cash incentives and bonuses. The actual salary paid to employees depends on market conditions, business revenue and profitability, workforce size and how much employers contribute to employee benefits. Employee Reward A salary system also includes the process for rewarding employees for performance. The example of employee reward is such as giving them bonus in their salary and also making a reward that could be realized by other people such as employee of the month. The calculation of money should be approved based on the budgetary limitations. Job Description An employee should be paid based on their job description and level. There are several level and positions that have different salary based on their specification such as CEO, Managers, Supervisor and staff also the others. Salary Surveys To develop a good salary system, it must be a research to search the other company’s salary system or scale. The company could get some information and references to decide the scale of the salary. Usually many companies are competing to get employees with good quality but with a salary in accordance with the budgetary limitations. 73

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Salary Distribution After all the description and specification above, Human Resource Department has developed and determined the salary distribution for each member of MUMUGI Company. The salary will be distributed once a week during 3 weeks operation of a company. The specification of salary is; CEO will received IDR 15,000 a week as the salary, while Managers will received IDR 12,500 a week, and staffs will received IDR 10,000 a week. The salary will be distributed by the Human Resource department under the authorization of CEO and Finance Department. E. Rules and Regulation 1. CEO, Managers, and Staffs are not allowed to absent at any meetings. 2. Every Manager is being responsible to the staffs. 3. If the employee cannot come to the meeting, please informed the CEO or Human Resource Manager and attach a reasonable and acceptable reason. 4. If the employee does not come to the meeting and give the unacceptable reason (e.g. overslept, lazy, do not get any information) will be punished by a punishment that is explained in the punishment section. 5. If the employee does not come to the meeting without any permission or information, he/she will be punished by a punishment that is explained in the punishment section. 6. If the employee comes late to the meeting, he/she will be punished by a punishment that is explained in the punishment section. 7. There will be some reward awarded to the discipline and hard-working employee. 8. The winner of every reward will be chosen by CEO and Human Resource Department based on the performance performed during the production period of the company. 9. The employee will always “smile” and say “thank you” to every customer. 10. The employee will answer the call from CEO at all times.

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| Assessment of Risk | Financial Plan

F. Reward and Punishment Reward Mumugi Corporation has three categories for giving the reward for each employee. The categories are:  For the “Employee” of the week This category is given for the best employee every week. The rewards for the winner are cute souvenir/stuffs and take a picture with CEO of Mumugi Corporation and lecturer using an honor crown, and it will be published on our twitter account. The recognition of the winner of this award will be measured by their discipline, punctuality, creativity on the teamwork, fast respond to a job, and also the manager’s assessment. The amount of sales of mugs will also be the point plus on their final score. The winner of this category will be announced every week.  For THE BEST EMPLOYEE This reward is given for the best employee during the whole production period. He or she will get free 1 mug with his/ her photo on it (tentative), and take a picture with CEO of Mumugi Corporation and lecturer using an honor crown, and it will be published on our twitter account. The recognition of the winner of this award will be measured by their discipline, punctuality, creativity on the teamwork, fast respond to a job, and also the manager’s assessment. The amount of sales of mugs will also be the point plus on their final score. This assessment will be valid during 3 weeks operation and will be announced in the “Mumugi Golden Awards 2013” after the 3 weeks operation ends.  Best Department This reward is given for the best department during the 3 weeks operation of MUMUGI Corporation. The best department will get the souvenir and take a picture of all the officer of that department that will also be published in our twitter account.

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The recognition of the winner of this award will be measured by how good the teamwork is, and also how solid the department is. The amount of sales of mugs will also be the point plus on their final score but it is not absolute.  For the “Mumugi Golden Award 2013” This reward is dedicated to each member for their appreciation and achievement during the activity since the Mumugi Corporation was established. This is the reward given by Mumugi Corporation for all employees as the appreciation for the hard work of employee during the production period. The reward for all members is certificate of appreciation signed by the CEO of Mumugi Corporation and lecturer of Entrepreneurship Program. Punishment Mumugi Corporation gives the punishment for the employee in these situations:  If late on meeting more than 15 minutes he/she has to sell additional 2 products (mugs) for a whole production period.  If do not come to meeting (WITH confirmation) he/she has to sell additional 3 products (mugs) for a whole production period.  If do not come to meeting (WITHOUT confirmation) he/she has to sell additional 7 products (mugs) for a whole production period. The punishment made by the Human Resource Department of Mumugi Corporation is not made for the material purpose, but these punishment are made in order to disciplining the members and to exercise all Mumugi Corporation’s employee to be accustomed in the rule and the regulation of the company in the real workplace.

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| Assessment of Risk | Financial Plan

Assessment o f Risk

Introductory Page | Executive Summary

| Industry Analysis | Description of Venture

A. Internal Risk Most of the internal risk of Mumugi Corporation is revolved around the production and operation period. The first main risk is the unsatisfying result of products. Because our company cooperate with the suppliers to produce the products, and maybe there are some differences of expectation of our company and the suppliers on the final result of the product that maybe either the mug design or the printing quality. Another risk is that the products are not delivered on time from the supplier to our company, because the lateness is a big deal for the professionalism of our company. The lateness delivery from the related suppliers may cause the lateness delivery also to our customer. Another internal risk is that the conflict and non-togetherness of our company. There are maybe some of the employee cannot cooperate in working on the job and are not willing to help each other, just selfishly working on his/ her division’s job. The laziness, impassionate to do the job, and indiscipline behavior be the ones to be the internal risk that can affect the performance of our company. B. External Risk The main external risk of Mumugi Corporation is the competition from another souvenir business especially on mugs that also offer the picture printed in it. The customers may tend to choose the cheaper price of the same product like we have. Another external risk is that not every people tend to choose mug to use to drink. Maybe some of them tend to choose plain glass or cup to drink their beverages. That will affect the market of our product, because maybe our product will be declined in the market because some of our target market tends to choose glasses or cups rather than mugs.

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Assessment of Risk

| Financial Plan

C. Contingency Plan Discussing about the contingency plan, in this section Mumugi Corporation divides the contingency plan into two kinds, first is the contingency plan to overcome the internal risk of this company, while the second discusses the contingency plan to overcome the external risk that may happen to Mumugi Corporation during the production and operational period. First, Mumugi Corporation has the contingency plan for the internal risk. To overcome the lateness delivery, we will tell the suppliers that the product will be delivered to the customer sooner before the deadline. So if the deadline of delivering the product is 3 days later, we will tell the suppliers that the customers need those products tomorrow. That will reduce the possibility of lateness in delivering the products and also will raise the customer’s trust toward our company. For another internal risk in our company about internal conflict, non-togetherness, and some indiscipline issues, Human Resource Department will act as it must. Human Resource Department will assess all the performance of every employee, and soon will give the reward for those who are discipline and do their tasks in a perfect way. Vice versa, the punishment will be given for those who break the rules and do the indiscipline behavior. The second contingency plan we have in this company is the plan to overcome the external risk that may be faced by Mumugi Corporation. To overcome the competition between our company and others from inside or outside President University, we offer a different way to choose the design of a mug as a customer wants. Customer is our main priority. That is why, one of our differences is that the customer can custom their own design to be printed in the chosen mug with the unique and stylish editing by our production staffs. And also, price is a big matter.

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Therefore, to stand with the competition, we offer the reasonable price for every mug we sell. The prices of the mugs are various, but again we still consider the design of mug with the proper price to offer to the customers. And then, to overcome the choice of our customers that maybe will choose glasses or cups more than mugs, we will tell them the uniqueness of our mugs products. To us, mug with the unique and stylish designed is the plus value and maybe becoming the pride for those who own it, further if the one who owned can custom his/her style according to his/her creativity and taste. It will be tasted very special to have something as we really want. Those reasons also that we will tell and saves on our target market’s mind. So by having the same perceptions, we believe that we can convince the customer to trust our company and products.

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Assessment of Risk

| Financial Plan

Introductory Page

| Executive Summary

| Industry Analysis | Description of Venture

A. Source of Capital Mumugi Corporation uses own capital to run the company. There are 18 members in Mumugi Corporation, every member will contribute to pay with the amount of IDR 150,000/member. The total capital for Mumugi Corporation is IDR 2,700,000. Mumugi Corporation Capital 18 x IDR 150,000 = IDR 2,700,000 The capital will be used to cover all department expenses except financial department, also the operating and administration expenses. The capital also shows the percentage of ownership that will be used to distribute the net income. B. Budgeting Plan The capital will distribute to finance each department budget in effective and efficient way. The budget for each department is as follows: B.1.

Chief Executive Officer Budgeting Plan Item

Quantity (Unit)

Price (IDR)

Total (IDR)

Business Plan

1

40,000

40,000

Business Report

1

55,000

55,000

TOTAL B.2.

95,000

Production Department Budgeting Plan Quantity

Item

Price (IDR)

Total (IDR)

1

14,000

14,000

Ribbon

1

500

500

Sticker

1

1,000

1,000

Accessories

1

500

500

(Unit)

Raw Material Mug type 1 (include design and print)

Total cost for Mug type 1 86

16,000

Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk |

Mug type 2 (include design and

Financial Plan

1

50,000

50,000

Ribbon

1

500

500

Sticker

1

1,000

1,000

Accessories

1

500

500

print)

Total cost for Mug type 2

52,000

Equipment Glue

10

5,000

50,000

Scissor

5

5,000

25,000

4,500/L

54,000

Other Gasoline

12 L TOTAL

B.3.

129,000

Marketing Department Budgeting Plan Item

Quantity (Unit)

Price (IDR)

Total (IDR)

Coming Soon Banner

1

36,000

36,000

Operational Banner

1

36,000

36,000

Standing Banner

1

100,000

100,000

Flyer

100

100/4 units

2,500

Gasoline

5L

4,500/L

22,500

Poster

10

5,000

50,000

Market Research

50

100

5,000

Catalogue

2

5,000

10,000

TOTAL

262,000

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B.4.

| Executive Summary

| Industry Analysis | Description of Venture

Human Resource Department Budgeting Plan Quantity

Item

Price per Unit

Total price

3

15,000

45,000

1

30,000

30,000

18

10,000

180,000

18

3,000

54,000

CEO

1

45,000

45,000

Managers

4

37,500

150,000

Staffs

13

30,000

390,000

1 box

20,000

20,000

(Units)

Cute and unique stuffs for “Employee of the Week” Unique mug for the “Best Employee” Souvenir for “muMUGi Golden Awards” Certificates Salaries (3 weeks):

Envelopes

TOTAL

914,000

Description

Total (IDR)

Chief Executive Officer Budgeting Plan

95,000

Production Department Budgeting Plan

129,000

Marketing Department Budgeting Plan

262,000

Human Resources Department Budgeting Plan

914,000

TOTAL BUDGETING PLAN

1,400,000

C. Forecast of Sales Mumugi Corporation operation schedule is as follows. February Su

Mo

Tu

We

Th

Fr

Sa

27

28

29

30

31

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

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Production Plan | Marketing Plan | Human Resource Plan | Assessment of Risk |

17

18

19

20

21

22

23

24

25

26

27

28

1

2

Financial Plan

March 24

25

26

27

28

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

1

2

3

4

5

6

Pre-order first session Bookkeeping Sales daily operation Last distribution C.1.

The sales forecast is as follows Forecast of Sales Product

Quantity (Units)

Price (IDR)

Total (IDR)

Week 1 Type 1

53

30,000

1,590,000

Type 2

2

70,000

140,000

Total

1,730,000 Week 2

Type 1

55

30,000

1,650,000

Type 2

3

70,000

210,000

Total

1,860,000 Week 3

Type 1

63

30,000

1,890,000

Type 2

4

70,000

280,000

Total

2,170,000

Total Forecast of Sales

5,760,000

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D. Break Even Point Analysis Break-even point is reached when total revenue equals to total cost. Mumugi Corporation elaborates the calculations in order to reach break-even point as follows.

Product

Sales Mix Ratio (%)

Unit

Unit

Selling

Selling Price (a)

Price (mix)**

Unit Variable Cost (b)

Unit

Unit

Variable

Contribution

Cost

Margin

(mix)***

(mix)****

Type 1

95%

30,000

28,500

16,000

15,200

13,300

Type 2

5%

70,000

3,500

52,000

2,600

900

Weighted Average Unit Contribution Margin

14,200

****Unit Selling Price (mix)

= Sales Mix Ratio x Unit Selling Price

****Unit Variable Cost (mix)

= Sales Mix Ratio x Unit Variable Cost

****Unit Contribution Margin

= Unit Selling Price (Mix) – Unit Variable Cost (Mix) FIXED COST

Budgeting of Chief Executive Officer

95,000

Budgeting of Production Department

129,000

Budgeting of Marketing Department

262,000

Budgeting of Human Resource Department

914,000

Total

1,400,000 (

)

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Financial Plan

Product Units at Break Even Point Product

Sales Mix Ratio (%)

Total Break Even

Product Units at

Units

Break Even Point

Type 1

95%

99

94

Type 2

5%

99

5

Break Even Point in Dollars Product Units at

Product

Unit Selling Price

Break Even Point

Product Sales in Dollars

Type 1

94

30,000

2,820,000

Type 2

5

70,000

350,00

Break Even Point in Dollars

Scale 1:25 units

91

3,170,000

Introductory Page

| Executive Summary

| Industry Analysis | Description of Venture

E. Financial Report MUMUGI STATEMENTS OF FINANCIAL POSITION 10, 17, 24 FEBRUARY and 3 MARCH 2013 2/10/2013

2/17/2013

2/24/2013

3/3/2013

ASSETS Cash Accounts receivable Supplies Equipment Total assets

3,316,500 865,000 95,000 4,276,500

3,793,500 930,000 75,000 4,798,500

4,539,500 1,085,000 53,000 5,677,500

LIABILITIES AND EQUITY Liabilities Unearned Revenue Accounts Payable Total Liabilities

1,730,000 1,730,000

1,860,000 1,860,000

2,170,000 2,170,000

Equity Capital Retained Earnings Total Equity

2,700,000 (153,500) 2,546,500

2,700,000 238,500 2,938,500

2,700,000 807,500 3,507,500

2,700,000 1,183,500 3,883,500

Total liabilities and equity

4,276,500

4,798,500

5,677,500

3,883,500

3,853,500 30,000 3,883,500

-

MUMUGI INCOME STATEMENT FOR THE WEEKS ENDED 10, 17, 24 FEBRUARY and 3 MARCH 2013 2/17/2013/ REVENUE Sales Cost of goods sold Gross profit

1,730,000 952,000 778,000

2/24/2013 1,860,000 1,036,000 824,000

3/3/2013 2,170,000 1,216,000 954,000

EXPENSES Administration expensesa

-

-

55,000

55,000

60,000

328,000

Advertising expenses Wages expenses Total expenses

136,000 195,000 386,000

195,000 255,000

195,000 578,000

Net income for the week

392,000

569,000

376,000

b

Operating expenses

c

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Notes a

Description Business Plan Business Report

b

Gasoline Supplies Expenses Reward for Employee of the Week Reward for Best Employee Certificates

c

Coming Soon Banner Operational Banner Standing Banner Flyer Poster Market Research Catalogue

F. Financial Report Analysis Horizontal Analysis MUMUGI STATEMENTS OF FINANCIAL POSITION 10, 17, 24 FEBRUARY and 3 MARCH 2013 ASSETS Cash Accounts receivable Supplies Equipment Total assets

LIABILITIES AND EQUITY Liabilities Unearned Revenue Accounts Payable Total Liabilities Equity Capital Retained Earnings Total Equity Total liabilities and equity

Horizontal Analysis 2/17/2013

2/24/2013

3/3/2013

14.38% 7.51% -21.05% 0.00% 12.21%

36.88% 25.43% -44.21% 0.00% 32.76%

16.19% -100.00% -68.42% 0.00% -9.19%

7.51% 0.00% 7.51%

25.43% 0.00% 25.43%

-100.00% 0.00% -100.00%

0.00% -255.37% 15.39%

0.00% -626.06% 37.74%

0.00% -871.01% 52.50%

12.21%

32.76%

-9.19%

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MUMUGI INCOME STATEMENT FOR THE WEEKS ENDED 10, 17, 24 FEBRUARY and 3 MARCH 2013

Horizontal Analysis 2/24/2013

3/3/2013

7.51% 8.82% 5.91%

25.43% 27.73% 22.62%

0.00%

0.00%

9.09%

496.36%

-100.00% 0.00% -33.94%

-100.00% 0.00% 49.74%

45.15%

-4.08%

REVENUE Sales Cost of goods sold Gross profit EXPENSES Administration expensesa b

Operating expenses

c

Advertising expenses Wages expenses Total expenses

Net income for the week

Vertical Analysis MUMUGI STATEMENTS OF FINANCIAL POSITION 10, 17, 24 FEBRUARY and 3 MARCH 2013

Vertical Analysis 2/10/2013

2/17/2013

2/24/2013

3/3/2013

77.55% 20.23% 2.22% 0.00% 100.00%

79.06% 19.38% 1.56% 0.00% 100.00%

79.96% 19.11% 0.93% 0.00% 100.00%

99.23% 0.00% 0.77% 0.00% 100.00%

LIABILITIES AND EQUITY Liabilities Unearned Revenue Accounts Payable Total Liabilities

40.45% 0.00% 40.45%

38.76% 0.00% 38.76%

38.22% 0.00% 38.22%

0.00% 0.00% 0.00%

Equity Capital Retained Earnings Total Equity

63.14% -3.59% 59.55%

56.27% 4.97% 61.24%

47.56% 14.22% 61.78%

69.52% 30.48% 100.00%

100.00%

100.00%

100.00%

100.00%

ASSETS Cash Accounts receivable Supplies Equipment Total assets

Total liabilities and equity

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MUMUGI INCOME STATEMENT FOR THE WEEKS ENDED 10, 17, 24 FEBRUARY and 3 MARCH 2013

Financial Plan

Vertical Analysis 2/17/2013/

2/24/2013

3/3/2013

100.00% 55.03% 44.97%

100.00% 55.70% 44.30%

100.00% 56.04% 43.96%

0.00%

0.00%

2.53%

3.18%

3.23%

15.12%

Advertising expenses Wages expenses Total expenses

7.86% 11.27% 22.31%

0.00% 10.48% 13.71%

0.00% 8.99% 26.64%

Net income for the week

22.66%

30.59%

17.33%

REVENUE Sales Cost of goods sold Gross profit EXPENSES Administration expensesa b

Operating expenses

c

Ratio Analysis 1. Current Ratio

Week 1

Week 2

Current Ratio =

4,276,500 1,730,000

Current Ratio =

4,798,500 1,860,000

Current Ratio =

2.47

Current Ratio =

2.58

Week 3 Current Ratio =

5,677,500 2,170,000

Current Ratio =

2.62

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2. Profit Margin

Week 1 Profit Margin =

Week 2

392,000 1,730,000

Profit Margin =

22.66%

Profit Margin = Profit Margin =

Week 3

569,000 1,860,000 30.59%

Profit Margin = Profit Margin =

376,000 2,170,000 17.33%

3. Asset Turnover

Week 1

Week 2

Asset Turnover =

1,730,000 (4,276,500+4,798,500)/2

Asset Turnover =

1,860,000 (4,798,500+5,677,500)/2

Asset Turnover =

0.38

Asset Turnover =

0.36

Week 3 Asset Turnover =

2,170,000 (5,677,500+3,883,500)/2

Asset Turnover =

0.45

4. Return on Assets

Week 1

Week 2

Asset Turnover =

392,000 (4,276,500+4,798,500)/2

Asset Turnover =

569,000 (4,798,500+5,677,500)/2

Asset Turnover =

0.09

Asset Turnover =

0.11

Week 3 Asset Turnover =

376,000 (5,677,500+3,883,500)/2

Asset Turnover =

0.08

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Financial Plan

G. Income Distribution Mumugi Corporation distributes the income for its members by calculating the total income for the 4 weeks and divides it to all members equally. The total income for each member and the computation is as follows.

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A P P E N D I X

Appendix 1

Catalogue Family packet

Imlek edition

Valentine

Vintage

Appendix 2 Employee Appraisal Date Employee Name Department & Position Appraised By

Criteria

0 Punctuality Disciplinary Fast Response Hospitality Creativity Activeness Additional Point

Comments

1

Point 2

3

4

5

Appendix 3

Order Form Pre Order : ................... Seller : ......................... No

Date

Name

HP

Address

Qtt

Type

Design

First Payment

Note