Business proposal. Elegante is a manufacturer professional in producing space saving furniture. It was established in 2009 and located in the Industrial Zone, Nilai, with over 150 Square meters factory.

ACKNOWLEDGEMENT

Firstly, deeply gratitude to God for giving us a good health of physical and mental to complete this report successfully.

Special thanks to our lecturer, for her valuable comments, suggestions, constructive criticisms, continued patience, understanding, and support throughout the preparation of this report. We are thankful for her critical review of the progress report and special attention to accuracy and detail.

Our thanks go as well to our friends for their help and support during this period of time. In particular to whom that has provided plenty of feed-back, comment and suggestion from student’s perspectives.

Last but not least, we would like to express appreciation to our team members for valuable contributions, cooperation and every effort that has been made to ensure the smoothness of this project report.

Company Introduction

Diagram 1: Company logo

Elegant’e is a manufacturer professional in producing space saving furniture. It was established in 2009 and located in the Industrial Zone, Nilai, with over 150 Square meters factory.

We currently employing more than 40 personnel engaged in the separate workshops of blanking, pressing, molding, aluminium alloy working, phosphor coating, spraying of electrostatic plastic, general assembling and final packing and also in other departments. We are aiming to produce and develop the most comfortable, and fashionable space saving furniture all over the world.

Our company follows rigorous international and domestic standards, has passed ISO9001 and ISO14001. We always pursue the principle of "Sincerity-Oriented, Customer Supreme, Quality First, Price Reasonable" in order to be in the leading position of the world-wide furniture manufacturers with the best quality.

1.1 Mission

To provide high quality products that combine performance with value pricing, while establishing a successful relationship with our customers and our suppliers and become the leading furniture maker, supplier in the market today.

1.2 Vision

To ensure the future of the company and the employees through customer and shareholder satisfaction by producing quality products, providing quality service, and operating the organization safely, efficiently, and profitably through continuous improvement.

1.3 Core Values

Respect

We treat each other with dignity and respect.
We all win when we support each other by placing the success of the company above individual interests

Integrity

We say what we mean and are accountable for delivering our commitment on time.
We comply with all legal requirements and hold ourselves to the highest standards of ethical conduct.

Initiative

If a problem exists we are individually responsible to see it through to rapid resolution.
We value people who demonstrate a positive, “can-do” attitude, while collaborating to win.
We work smart and with a sense of urgent.

1.4 Quality Policy

“We will exceed Customer Expectations with our Superior Products and Services”

1.5 Quality Statement

“Every employee is personally responsible for ensuring the highest Quality in the products and services delivered to internal and external customers. Continuous improvement in the quality of our processes, products and services is fundamental to the achievement of customer satisfaction”

Organizational Structure

The type of organizational structure we use is functional structure which groups people together into functional departments such as purchasing, accounts, operation, manufacturing and marketing. Our company’s President Fiona Gan and Vice President Evelyn Liaw are responsible for making decision about the direction of the company and establishing policies that affect the company members. Under the vice president is director. Each department has their respective director to manage other managers and is typically responsible for translating the goals set by top management into specific details that lower level managers can perform.

The first line managers are responsible for directing the day-to-day activities of operative employees. In the functional organization, each job becomes the focus point. Similar function-based jobs done by the employees are put together in silos in the functional structured based organizational. Specialization is centralized and employees who are doing these specialized jobs are clustered. The purchasing function concentrates on purchase activities.

Human Resources personnel handle the hiring, training, and firing activities. The accounting department takes care of financial activities. Manufacturing focuses on rolling out the finished product. The sales team takes the role of promoting the finished product in the marketplace. Marketing activities market the product with a long range goal of staying competitive in the market. Functional organizational structures are ideal for organizations having a cluster of products which can easily group under a single head.

The benefits of using functional structure are:

the chain of command is linear and sound
The human resource abilities are constantly nurtured ...

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The benefits of using functional structure are:

the chain of command is linear and sound
The human resource abilities are constantly nurtured by concentrated tutoring, leadership, and guidance
Professional similarities between the organizational participants in each of the different functional offices
The development of professional expertise attained by clustering specialists in the present function as a single unit
Provides an easy path for the employees to grow within the organization sideways as well as upwards in the organizational tree

Chart 1: Hierarchy of Elegant’e

Product-----------------FURNIX

With rhythm of our life become faster, more and more new convenient concepts and products appear in our vision. Therefore, we have to admit that the new things are changing our world every time. We are going to have a new concept from furniture design, we called it FURNIX.

As we can see, if you giving a cursory look and gaining shallow understanding, it is only a box. But when it is opened; we can find a lot of furniture hide in it. Each Furnix unit includes all the essential furniture for setting up in a new bedroom: Wardrobe, large desk/table (surface 65 cm by 70 cm) with a separate desk cabinet with locking drawers, a revolving, height-adjustable desk chair, two stools, a air pump bed (200 cm by 80 cm / 78.7 inch by 31.5 inch), and a tall set of shelves. The stools and the drawers of the desk cabinet also serve and double as additional storage containers.

When disassembled and packed the Furnix becomes a crate measuring 85 cm in length, 50 cm in height, and 70 cm in width. Without any tools whatsoever the Furnix can be packed to the size of the standard European four-way pallet within just seven minutes. Unexpectedly, the box’s size is only about 70cm*85cm. One or two people can lift, carry, and assemble each piece of furniture within the Furnix. The unit is constructed of durable, long-lasting materials.

A packed Furnix can be transported and stored at nominal expense by any carrier and shipping agent. The Furnix can then either be sent to a prearranged address or delivered directly to one’s flat. Even after many moves the strong materials chosen for the Furnix mean that the unit will never show signs of wear and tear.

A variety of ingenious refinements make each Furnix a unified, complete intelligent design providing a unique solution to moving house for an increasingly mobile generation: a magnetized clothes rack system, safeguards for computer cables and electric wires. It is a smart design for everyone, suits in outside tenant's people.

3.1 Material of Furnix

Furnix is space-saving furniture that is mainly made up of aluminium alloy. Typical alloying elements are copper, zinc, manganese, silicon, and magnesium. As the outer box of Furnix is part of the furniture, so aluminium alloy is suitable for making this product as it is conducive to move, and uneasy to damage. Our product – Furnix is simple and environmental friendly.

Aluminium alloy surfaces will keep their apparent shine in a dry environment due to the formation of a clear, protective oxide layer. Moreover, Aluminum alloys have a strong resistance to corrosion; therefore our product can last for a longer time. Coating a layer of paint on the surface will give a double protection to the product and the paint film will not fall off for at least a decade. In the future, this type of furniture will become the mainstream furniture.

The separate parts of Furnix product are assembled using screws. The screws we use are Socket cap screw which is a type of screws that have superior resistance to corrosion and deep sockets make wrenching easier. It also Supplies greater tensile strength while requiring less surface area. Therefore, more and more manufacturers like using this type of screws to produce furniture.

3.2 Packaging

Packaging is to protect products from damage, contain the product, promote product benefits, communicate, and add convenience. It may include innovations for convenience, assist retailer in attracting attention to the product and also to prevent theft. It is also defined as all products made of any materials of any nature to be used for the containment, protection, handling, delivery and preservation of goods from the producer to the user or consumer. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use.

This applies where the product is one of the following:

'Primary' or 'Sales' packaging is packaging which forms a sales unit for the user or final consumer, for example, a box containing soap powder
'Secondary' or 'Grouped' packaging is that which contains a number of sales units, for example, a cardboard outer containing a number of boxes of soap powder.
'Tertiary' or 'Transport' packaging is packaging that is used to group secondary packaging together to aid handling and transportation and prevent damage to the products, for example, the pallet and shrink wrap used to transport a number of cardboard outers containing boxes of soap powder. For the purposes of the Regulations, this does not include road, ship, rail or air containers.

The main packaging materials are paper or fibreboard, plastic, glass, steel and aluminium. Wood packaging is also included, as is packaging made from other materials.

We choose paper box and fibreboard as our material for the furniture and wood packaging is for export use only. We will choose paper box and fibreboard for small packaging while wood packaging is for export and big amounts use.

Below are the details of our packaging:

Material
Art Card: 210gsm / 230gsm / 260gsm / 300gsm / 310gsm / 350gsm
Box Board
Others

Other Finishing

UV Varnish (1 side / 2 sides)
Matt Lamination ( 1 side / 2 sides)
Gloss Lamination (1 side / 2 sides)
Machine Varnish (1 side / 2 sides)
Spot UV
Hot Stamping
Emboss
Others

Brochures, Catalogues, Posters, Booklets, Calendar, Name card, and Label sticker are attached together.

Diagram 2: Packaging of Furnix

Diagram 3: Packaging of Furnix which to be delivered to

Diagram 4: Packaging of Furnix which is to be tranported oversea.

Packaging and package labeling, they are actually linked and have several objectives:

Physical protection - The objects enclosed in the package may require protection from, among other things, , , compression, and .
Barrier protection - A barrier from , , dust and it is often required. is a critical factor in design. Some packages contain or to help extend shelf life. or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, and safe for the intended is a primary function.
Containment or agglomeration - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. , , and need containment.
Information transmission - Packages and communicate how to use, transport, , or dispose of the package or product. With , , , and products, some types of information are by governments. Some packages and labels also are used for purposes.
Marketing - The packaging and can be used by to encourage potential buyers to purchase the product. Package and physical design have been important and constantly evolving phenomenon for several decades. and are applied to the surface of the package and (in many cases) the .

Security - Packaging can play an important role in reducing the risks of shipment. Packages can be made with improved to deter tampering and also can have features to help indicate tampering. Packages can be engineered to help reduce the risks of : Some package constructions are more resistant to pilferage and some have pilfer indicating seals. Packages may include seals and use to help indicate that the package and contents are not . Packages also can include anti-theft devices, such as dye-packs, tags, or tags that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of .
Convenience - Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, dispensing, and reuse.
Portion control - Single serving or single packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. It is also aids the control of inventory: selling sealed one-liter-bottles of milk, rather than having people bring their own bottles to fill themselves.

Many types of symbols for package labeling are nationally and internationally standardized. For consumer packaging, symbols exist for product certifications, , and . Some requirements and symbols exist to communicate aspects of consumer use and safety. Examples of environmental and recycling symbols include: , , and Green Dot.

Diagram 5: Recycle logo which is to attached on Furnix

Diagram 6: Plastic Resin Code

3.2 Labeling

Labeling is part of packaging, it provide information about brand, ingredients, operating instructions, life, or risks. It is regulated by law. Electronic bar codes on labels help track sales and inventory. Besides, labeling is different whether it is import to other countries or supply to domestic.

Products label help buyers of furniture make informed purchases. Our products and also the material that are to be used for is included with the correct Law label. The label explains exactly what the material, and if more than one type is used, the percentage of each material.

The label enables consumers to base their purchasing decisions on accurate and truthful labeling by knowing what is inside the product. Consumers may remove the tag from items they have purchased but we will make sure the tag is still on the product when it leaves the selling floor. The label shall be securely affixed on the top panel or any other location which is visible to the consumer.

Our labels include:

The registration number. It is unique to each manufacturer and needs to be licensed.
Our label is also including made by which country and also our manufacturers full name and address.
The date of delivery is also required in our label

Diagram 7: The labeling Process of Furnix

Pricing

Markup = RM 251.87

Markup percentage =

Total pricing = RM 600

Promotion

Promotion includes all activities designed to inform, persuade and influence people when they are making the decision to buy.

5.1 Advertising Using Direct Mail

We will deliver paper mail to all postal customers in the area. Since our targeted customers are those who always shift or move houses, especially students, we will deliver this direct mail to housing area and condominiums near colleges and universities. The sample of advertisement is enclosed at the appendix (page 20).

5.2 Advertising on Radio

We are advertising our product through radio advertisement, which is 0:30 seconds. This king of advertisement is very useful because the public may take immediate response by calling the official number or go to the company website.

5.3 Online advertisement

Elegant’e makes use of the internet and World Wide Web to deliver marketing messages. We have employed IT genius to make pop-up for our advertisement. It opens in front of the current page of the users, displaying the Furnix’s advertisement.

5.4 Business Card

Business cards are an easy marketing tool used by professionals to advertise their services. They are used when a person's contact information is requested, at professional conferences or meetings, and to refer another person to a business. The top management level of Furnix has their own business card to promote the product of Furnix. Another advantage of business card is to let the public contact us easily. The sample of business card is enclosed at the appendix( page 20)

Discount on Delivery for Bulk Purchase

In order to stimulate demand, our company decides to offer discount to our regular customers, especially our sales agent. The purpose of doing this kind of promotion is to encourage our sales agent to maximize their sales revenue.

Place

Place is organized network of firms used to move goods and services from producers to customers.

Our company is located at Menara Park, City Centre, Jalan Yap Kwan Seng(1st floor) at the foot of KLCC. KLCC is one of the prosperous places at Kuala Lumpur which will hold the value in the longer term. With a good marketplace, more streams of people will come to buy our product. The strategic location of our shop make usable to attract foreign buyers to purchase our product. The channel of distribution we use is distribution through sales agents or brokers where the sales agents represent the producer. With the help of agents, our total revenue will increase due to the increase in quantity sold. There has good transportation. At that place, the rental of our retail outlet is RM5,250. Around KLCC there are many market places, more streams of people and good road communications. So we choose that place to continue our business.

Product Manufacturing Process

Before start of manufacturing of any furniture product a desired design is selected. Selection of elegant design is important to ensure attractive finished product.

Aluminum alloy is melted at a high temperature and high pressure in furnace. Melted aluminum alloy is molded into the desired shape according to the design. Once the shape is set, these parts/pieces are coated with a layer of oxide for corrosion resistance. After that, different parts of the product are assembled or fixed together to give the shape to the final product.

Assembled product is grind to make the surface smooth. Once the surface is smooth, finishing material is applied to make the surface ready for paint or polish. After the base is prepared final finishing is applied depending on requirement in term of paint/polish.