professional office practice AI653

PROFESSIONAL OFFICE PRACTICE AI653 ERICA WONG XIN EU 1001954466

NOV 2020

INDEX:

EXECUTIVE SUMMARY BUSINESS DESCRIPTION STYLE THAT WE SPECIALIZE IN SERVICES PROVIDED MANUFACTURING PROCESS STEPS TO HAVE STRATEGIC RELATIONSHIPS

MARKET RESEARCH AND STRATEGIES TARGET MARKET & SEGMENT STRATEGY TRENDS & THEMES SALES IMPROVEMENT TACTICS

MANAGEMENT AND PERSONNEL PRESIDENT/ FOUNDER MARKETING MANAGER STORE MANAGER & DESIGNER LEAD CARPENTER ORGANIZATION CHART

FINANCIAL DOCUMENT

1

EXECUTIVE SUMMARY Design by Erica will be established as a firm specializing in custom cabinets for commercial market, high-end residential and resort. Its founder has considerable experience in the building and cabinet industries. Over a number of years of participation in the construction of luxury homes, the company's owner has seen the need for a cabinet line with a wide range of design possibilities, high-end finishes, top-of-the-line management, customer service and efficiency. The owner of this company had an idea when she saw the opportunity of an uprising development area. The specified development consisted of facilities like high rise residential areas, hotels and commercial areas and other start-ups. Custom cabinets are storage cabinets that are made specifically for the space in which they will be used as it depends on a client’s preference in terms of the design.

MISSION To consistently offer high quality goods and outstanding customer service at reasonable prices to meet the changing needs of our customers.

2

BUSINESS DESCRIPTION Design By Erica was named after the founder named Erica Wong. As the E in the logo represents our cabinet and why it was designed as it is, because we make custom cabinets so we can built any design of cabinets that clients require.

Design By Erica is a new business that have experience and efficiency in the market of cabinet manufacturers while fulfilling the challenging operational, scheduling and quality needs of architects, owners and construction professionals.

OBJECTIVES • To be the leading supplier of luxury home cabinets on the regional market.

• Sales to more than double year 1 by the end of year 2.

• Aim to gain 60% of profits in the high-end residential customer market.

• 30% of profits in the mid-range residential consumer market.

• 10% of profits in the market growth category.

CLIENTS We will emphasize on regional developers, owners and contractors involved in high-end residential, resort and commercial development segments.

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Our business would stand out from the others as we have a strategic edge in our ability to offer high volumes and trendy versatility while maintaining a premium product backed by outstanding service.

STYLES THAT WE ARE SPECIALIZED IN

MODERN

SHAKER

LOUVERED

Generally feature flat surfaces, minimal ornamentation and simple hardware, giving your home a clean, unfussy look.

Characteristics of this cabinet style include flatpaneled doors with rail frames, natural wood finishes and neutral paint hues like white or gray.

Louvered cabinets are made from horizontal wood slates like you’d see on window shutters and furniture pieces.

4

SERVICES PROVIED THAT MAKES US DIFFERENT FROM THE REST

Services that we will be providing are online order, phone ordering, in-home estimates/consultations, design assistance, design services, commercial services and free delivery.

Online ordering can be made by taking a few digital photo of your space, making some measurements and sending the photos and measurements through email.

In-home estimate/consultations this company will always consult and measure in situ when a cabinet is ordered for "difficult places" in the home.

Design assistance, in store colour coordination advice and help in selecting the right material that is suitable for the space.

Design services, we will help you to express your vision for your home or commercial enterprise. As we can execute design that are being mention or even enhancing the design idea of the customer.

Commercial Services is one of the soundest business decisions ever make. Our company is all about service. Design by Erica has friendly personnel that are trained to listen. They can hear your needs and collaborate creatively for you to find the right solutions to fulfil them. Sterling service - our commitment to you.

We, offer free delivery as we handle the vast majority of all local deliveries ourselves. We work with trustworthy partner companies for additional deliveries.

The utmost effort is taken to send orders to our clients. All products are carefully covered with blankets and plastic when delivered. Delivery will be made within 24 hours so that customers will get their good quickly.

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1. ONLINE ORDERING

2. IN-HOME ESTIMATE/ CONSULTATIONS

Taking a few digital photo of your space, making some measurements and sending the photos and measurements through email.

Consult and measure in situ when a cabinet is ordered for "difficult places" in the home.

3. DESIGN ASSISTANCE

4. DESIGN SERVICES

Colour coordination advice and help in selecting the right material that is suitable for the space.

Help you to express your vision for your home or commercial enterprise. As we can execute design that are being mention or even enhancing the design idea of the customer.

5. COMMERCIAL SERVICES

6. FREE DELIVERY

Design by Erica has friendly personnel that are trained to listen. They can hear your needs and collaborate creatively for you to find the right solutions to fulfil them. Sterling service - our commitment to you.

Delivery will be made within 24 hours so that customers will receive their good quickly.

6

MANUFACTURING PROCESS The availability of materials will be from three separate manufacturers such as Green Dragon Wood Products (M) Sdn Bhd, Casateak - Teak Wood Furniture Malaysia and Bristol Technologies Sdn Bhd. They will be supplying red oak, white oak, hickory, cherry, hard maple, birch, ash and pine. They could also be finished with custom veneers. However, material such as Tungsten, titanium, stainless steel, brass and alloy will be supplied by Soon Hoe Steel Sdn Bhd and K. Seng Seng Corporation Bhd. Moving forward, having the wood or steel costumed cut, it will be sent to Uni Hardware & Electrical Enterprise.

After having all the pieces of material cut it will be painted or welded. As for paints, we will be getting them from two different manufacturers such as Dover Paints Manufacturing and Mercury Paints Factory Sdn. Bhd. Welding will be sent to MetalWeld by Delta Welding Malaysia Sdn Bhd. After having the materials coated or welded it will then be delivered to the main storage of Design by Erica by trucks, then it will be assembled by carpenters and kept in the storage, but if the custom cabinet are too huge then carpenters will then have to assemble the cabinet at the customer’s place. Lastly, the completed cabinets will then be delivered to the customer’s place.

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DESIGN IDEA FROM CLIENT

WOOD MATERIAL WILL THEN BE ORDER FROM GREEN DRAGON WOOD PRODUCTS (M) SDN BHD, CASATEAK ORBRISTOL TECHNOLOGIES SDN BHD

STEEL MATERIAL WILL THEN BE ORDERED FROM SOON HOE STEEL SDN BHD AND K. SENG SENG CORPORATION BHD.

SENT FOR CUTTING OR RESHAPING UNI HARDWARE & ELECTRICAL ENTERPRISE. TAKEN BACK FOR PAINTING OR FINAL TOUCH UPS SENT TO WAREHOUSE TO ASSEMBLE DELIVERED TO CUSTOMER'S DESTINATION

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STEPS TO HAVE A STRATEGIC RELATIONSHIP

1. Create new partnerships through the diversification of the networks.

Push yourself to reach beyond the people in your immediate circle, and others you know well, to contact and build a genuine friendship with at least one supplier, a client, and a rival. The next step is to search out important individuals from nonrelated institutions, such as the media and the government.

2. Give as much as you want to get out of a relationship.

Successful business partnerships need reciprocity-not a one-way, half-hearted effort. Give and provide support, link individuals with one another, or exchange knowledge about the business or the non-profit sector. Only then can you be fulfilled and find others ready to respond when you need support.

3. Selectable invest quality time on main relationships.

Spend time with the most valuable clients, your most loyal workers, and the executives who will make the biggest difference to the company. This partnerships will produce returns in the near future and in the longer term. Stop the pit of idle talk and ego creation.

4. Keep your attention on the social and business environment of your city.

Pay attention to the ties, loyalty, and networks that distinguish your culture.

Recognize the expectations, principles and preferences that form the actions of the people you need.

This will help you create a secure and efficient network that will maximize your business interests.

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MARKET RESEARCH & STRATEGIES Since our company emphasize on regional developers, owners and contractors involved in high-end residential, resort and commercial development segments.

Hartamas Heights was known in 2019 as an exclusive luxury enclave consisting of 219 bungalows worth about 16 million. If we take an average of RM40,000 per kitchen, perhaps conservative, and multiply that by 219 homes, that gives us a total of RM 8,760,000 per year in the kitchen installed for the year. In our first year, we expect to gain 4-5 percent of the market share of this residential sector. We don't think this is unreachable, particularly in a still-market. Damansara Heights, has great potential as there are resort developments, Dorsett Hartamas Kuala Lumpur, Sofitel Kuala Lumpur Damansara and Royale Chulan Damansara are nearby.

TARGET MARKET SEGMENT STRATEGY

Market Analysis

Design By Erica will concentrate on targeting builders and developers who work with the luxury

home

market.

Having

ourselves

known to these entities would produce a number of strong leads, along with making personal suggestions to homeowners. There are proposals to transform office space to a showroom in a high-visibility spot. This will

Commercial development

give us recognition to new homebuilders

Mid range residential

who are searching for our product.

High- end residential

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Market Analysis Potential Customers

Growth

CAGR

High-end residential

3%

5,260

Mid-range residential

5%

3,500 3,675 3,859 4,052

5,418 5,581 5,748

5,920

3.00%

4,255

5.00%

Commercial development 7%

10,000 10,700 11,449 12,250

13,108

7.00%

Total

18,760 19,793 20,889 22,050 23,283

5.55%

5.55%

Industry Analysis

There are two major categories of cabinet manufacturers in the market.

1. Resellers of complete cabinet collections using stock pieces where the cabinets are professionally installed. Typically, they don't have any store equipment, but they have showrooms.

2. Custom shops with full, in-house production facilities. They are mostly very product-oriented and under-performing in customer service.

Design By Erica can offer high-volume jobs, superior project management and outstanding efficiency while retaining low overhead.

The high-end cabinet market knows and is more likely to pay for the idea of service and assistance when the deal is explicitly defined. There are several companies on the local market. Each of them offers a decent product, we believe that they are unable to offer a complete turnkey product. There are four considerations regulating the expense of all kitchen projects: scale, product, construction and services. Many people falsely conclude that the scale of the project and the option of big-name goods would yield the best outcomes. However, it is the design and facilities of the company that would have the biggest effect on the efficiency and value of the investment made by consumers.

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TRENDS AND THEMES

The current trends in 2020 Monochromatic and black are prone to be use for furniture such as cabinets.

Monochromatic colour schemes offer a sleek and elegant design that will complement a modern apartment.

Built-in appliances into cabinet With a nod to convenience and practicality, searches for ‘built in kitchen appliances’ has seen a 160% rise (Google Trend Data 2018 – 2019), revealing a need for appliances that fit around our lifestyles, are easy to maintain and requires minimal upkeep.

Natural finishes 2020 will see a resurgence of natural finishes, where wood components are left exposed; adding detail, definition and character to a space. Natural oak drawer boxes, granite worktops and soothing neutrals will be favoured options.

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TRENDY COLOURS

MIXED WOOD TONES

The new trend people enjoy is to combine natural wood and painted cabinets.

BLACK Edgy, but so classic, black cabinets complement everything from warm wood shelves to bright white backsplashes.

MUTED SHADES

WOOD FINISHES

It has subdued colours like navy, rich greens, warm ivories, and even charcoal.

The choice of wood species and paint is also very significant, as the honey-toned maple has a completely different look and feel to the white oak cabinet.

SEA GREEN It's serene and it produces a feeling of calmness

BLUE AND GREEN

In the direction of shades that are darker and more moody, but still grounded in nature.

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SALES IMPROVEMENT TACTICS Our advertising approach is to make ourselves known by mailings, print advertisements and direct contact with architects and builders who are primarily involved in the design / construction of commercial development and luxury homes. Besides, having a showroom is going to be a branding tool in itself. The showroom will give us exposure to the general public, to newcomers to the city and to building professionals.

STRENGHT - Have connection suppliers - Years of participation in the construction of Luxury homes - Location of company (high-end area) - Positive attributes of people, such as knowledge, background, education, credentials, network, reputation, or skills.

WEAKNESSES - Change of mind from supplier in terms of pricing - Lack of new technology

OPPORTUNITY - Expending connection with clients since there’s new residential area - Recent market growth in the area

THREATS - Upcoming cabinet company nearby - Offer by another company that price will be given cheaper

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GROWTH WITHIN THE NEXT 5 YEARS 1ST YEAR Market Analysis Potential Customers

Growth

CAGR

High-end residential

3%

5,260

Mid-range residential

5%

3,500 3,675 3,859 4,052

5,418 5,581 5,748

5,920

3.00%

4,255

5.00%

Commercial development 7%

10,000 10,700 11,449 12,250

13,108

7.00%

Total

18,760 19,793 20,889 22,050 23,283

5.55%

5.55%

2ND YEAR Market Analysis Potential Customers

Growth

High-end residential

3%

6,097 6,281 6,469 6,663

6,863

3.00%

Mid-range residential

5%

4,255 4,468 4,691

5,172

5.00%

Commercial development 7%

13,108 14,026 15.00

Total

23,460 24,763 26.136 27,587 29,118

5.55%

CAGR

4,926

17,260 18,468

7.00%

5.55%

3RD YEAR Market Analysis Potential Customers

Growth

CAGR

High-end residential

3%

7,069 7,281 7,500 7,724

Mid-range residential

5%

5,172

5,431 5,702 5,987

7,957

3.00%

6.297

5.00%

Commercial development 7%

18,468 19,760 21.143 22,624

24,207

7.00%

Total

29.118 30,734 32.440 34,240

36,140

5.55%

5.55%

15

4TH YEAR Market Analysis Potential Customers

Growth

CAGR

High-end residential

3%

7,957

8,195 8,441 8,694

8,955

3.00%

Mid-range residential

5%

6,297 6,601 6,931 7,277

7,6413

5,00%

Commercial development 7%

24,207

Total

36.140 38,146 40,263 42,498 44,857

5.55%

25,901 27.215 29,655 31,730

7.00%

5.55%

5TH YEAR Market Analysis Potential Customers

Growth

High-end residential

3%

8,955 9,492 9,777

Mid-range residential

5%

7,413

Commercial development 7%

31,730

Total

44,857 47,346 49,973 52,747 55,674

5.55%

CAGR 10,070

10,372 3.00%

8,232 8,425 8,846

9,289

41,799 44,724 47,855

51,205

GROWTH IN SALES

5.00% 7.00%

5.55%

Commercial development Mid range residential High- end residential

50,000 40,000

30,000 20,000 10,000

Y1

Y2

Y3

Y4

Y5

YEARS

16

MANAGEMENT AND PERSONNEL PRESIDENT Erica Wong, 26, is the president of Design By Erica, she has participated in the construction of luxury homes, the company's owner has seen the need for a cabinet line with a wide range of design possibilities, high-end finishes, top-of-theline management, customer service and efficiency.

Skill: Innovative, with a vision of the future of the business that can be designed, strategized and executed. Good leadership skills, including the ability to connect with board presidents, management and frontline personnel. Financial and operational expertise, as well as knowledge of the laws, policies and procedures that impact the company. Ability to recruit, cultivate and maintain the highest talent. Have a very high degree of emotional intelligence. Strong leadership qualities and the potential to encourage people to respond by their influence.

Job Scope: · Oversee the budgets, employees and other executives of the company. · Work with board members to prepare and execute a short, mid and long-term vision for the organisation. · Speak with board members and other executives to determine the outcome of the company and to ensure that it is in accordance with specified mission of the company. · Encourage corporate investment, act as a leader and lead the group. · Oversee the entire activity of the company to ensure that it works and that the targets are accomplished on the basis of the course set out in the strategic plans. · Acts as the voice of a corporation when dealing with state and municipal governments and local populations.

17

MARKETING MANAGER Pricillia Chan, 26, is marketing manager. Pricillia Chan was, from the marketing department of the Peri Furniture, having been in charge of national catalog production and catalog advertising. Pricillia also managed direct sales at one of the furniture distributors that has since died to industry consolidation. Pricillia has a B.A. degree in literature from the University of Washington.

Skill: Represent the company well, keep the customer's needs in mind and Motivate the team marketing manager.

Job Scope: · Website management. · Social media management. · Copywriting and content management. · Data analytics. · PR and corporate communications. · Working with the management team, such as the marketing director or the managing director, to create a marketing plan for the brand. · Hiring and overseeing the success of a more junior marketing team that could also include PR and artistic workers. · Analysis and study of industry dynamics and rivals. · Oversight on ad strategies · Monitoring the success of marketing campaigns and preparing reports to the executive board. · Negotiating and linking with third-partymarketing companies.

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STORE MANAGER & DESIGNER Jimmy Lee, 45,designer, is responsible for product design and development, assembly, and manufacturing. Jimmy, workshop manager, designed furniture for Chowder Manufacturing before becoming store manager. He was responsible for one of the first executive cabinet designed to include customized fittings for personal computers. He has an B.S. and M.S. in industrial design, from Stanford University and the University of Oregon, respectively.

Skill Skilled in public relation, knowledge of product selling and connections with dealers/manufacturers Job Scope: · Provide outstanding quality to ensure a good relationship with the customer. · Motivate the sales team to meet sales goals by coaching and mentoring employees. · Create business practices to draw more buyers expand retail traffic and improve profitability. · Hire, train, and supervise new workers. · React to client concerns and questions in a responsible way. · Create and plan promotional materials and shows in-store. · Prepare detailed information on purchasing patterns, consumer needs and income.

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LEAD CARPENTER Kelvin Low, 25,lead carpenter, has knowledge of mechanical drawing, and general vocational technical training as he graduated from Universiti Teknologi Malaysia and was an outstanding student. Before entering Design By Ericca he used to work in Jello Cabinet store as he was the assistant carpenter.

Skill: Skilled in to accept and execute orders and interact with co-workers, able to read and follow labels, safety notices and instructions and aware to detail and always warn to ensure protection.

Job Scope: · Math skills · Physical strength · Communication · Attention to detail · Problem-solving · Dexterity · Mechanical skills

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ORGANIZATION CHART

DESIGN BY ERICA

PRESIDENT ERICA WONG XIN EU

MARKETING MANAGER

STORE MANAGER

LEAD CARPENTER

PRICILLIA CHAN

JIMMY LEE

KELVIN LOW

HIGH-END RESIDENTIAL SALE STAFF

STAFF

ASSISTANT CARPENTER

COMMERCIAL SALE STAFF MID-RANGE SALE STAFF

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FINANCIAL DOCUMENT SALARY Senior Marketing Manager 12 months x RM2,964 = RM 83,567 (1 year) RM 417,8335 X 5 years = RM 417,835 Staff 12 months x RM2,000 = RM 24,000 (1 year) RM 24,000 X 5 years = RM 120,000 Senior Store Manager 12 months X RM4,134 = RM 49,608 (1 year) RM 49,608 X 5 years = RM 248,040 Staff 12 months X RM2,000 = RM 24,000 (1 year) RM 24,000 X 5 years = RM 120,000 Senior Carpenter 12 months X RM4,400 = RM 52,800 (1 year) RM 52,800 X 5 years = RM 264,000 Junior Carpenter 12 months X RM2,400 = RM 28,800 (1 year) RM 28,800 X 5 years = RM 144,000

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1ST YEAR FINANCIAL DOCUMENT

2ND YEAR FINANCIAL DOCUMENT

Average income

Average income

Income:

Income:

Commercial = RM 15,000 000 High-end residental = RM3,500 000 Mid-range residential = RM8,760 000 Total = RM 27,260 000

Commercial = RM 15,018,468 High-end residential = RM3,506,863 Mid-range residential = RM8,765,172 Total = RM 27,290,503

Expenses:

Expenses:

Warehouse rental =RM21,600 Company shop rental = RM 114,000 Manufacturing expenses = RM 88,419 Bills = RM 100,000 Salary = RM 597,043 Total = RM 921,062

Warehouse rental =RM21,600 Company shop rental = RM 114,000 Manufacturing expenses = RM 88,419 Bills = RM 100,000 Salary = RM 597,043 Total = RM 921,062

Balanced profit 1st year = RM26,338 938

Balanced profit 2nd year = RM 26,369,441

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3RD YEAR FINANCIAL DOCUMENT

4TH YEAR FINANCIAL DOCUMENT

Average income

Average income

Income:

Income:

Commercial = RM 15,042,675 High-end residental = RM3,514,820 Mid-range residential = RM8,771,469 Total = RM 27,328,964

Commercial = RM 15,074,405 High-end residential = RM3,523,775 Mid-range residential = RM8,847,882 Total = RM 27,446,062

Expenses:

Expenses:

Warehouse rental =RM21,600 Company shop rental = RM 114,000 Manufacturing expenses = RM 88,419 Bills = RM 100,000 Salary = RM 597,043 Total = RM 921,062

Warehouse rental =RM21,600 Company shop rental = RM 114,000 Manufacturing expenses = RM 88,419 Bills = RM 100,000 Salary = RM 597,043 Total = RM 921,062

Balanced profit 3rd year = RM 26,407,902 Balanced profit 4th year = RM 26,525,000

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5TH YEAR FINANCIAL DOCUMENT

Average income Income:

Commercial = RM 15,125,610 High-end residential = RM3,534,147 Mid-range residential = RM8,857,171 Total = RM 27,516,928 Expenses:

Warehouse rental =RM21,600 Company shop rental = RM 114,000 Manufacturing expenses = RM 88,419 Bills = RM 100,000 Salary = RM 597,043 Total = RM 921,062 Balanced profit 5th year = RM 26,595,866

PROFIT

26,595,866

Balanced profit 1st year = RM26,338 938

26,525,000 26,407,902

Balanced profit 2nd year = RM 26,369,441

26,369,441

Balanced profit 3rd year = RM 26,407,902

26.338,938

Balanced profit 4th year = RM 26,525,000 Balanced profit 5th year = RM 26,595,866 Total profit for 5 years = RM 132,237,147

Y1

Y2

Y3

Y4

Y5

YEAR

25

"YOU HAVE TO SEE FAILURE AS THE BEGINNING AND THE MIDDLE, BUT NEVER ENTERTAIN IT AS AN END." -JESSICA HERRIN, FOUNDER AND CEO OF STELLA & DOT