Business Plan: Dream Trip Application (BBDM3303, UTAR)

This business plan, created by a group of students from Universiti Tunku Abdul Rahman (UTAR), outlines the development and launch of 'Dream Trip,' a mobile application designed to streamline travel planning and execution within Malaysia. The plan includes a comprehensive industry analysis using PEST and Porter's Five Forces models, revealing favorable conditions for market entry. It details a robust marketing strategy, including market segmentation, target market identification (focusing on users aged 18+ from all income groups), and a marketing mix. The operations section covers business premises, procedures, and personnel requirements. The management plan presents the team's structure and qualifications, alongside an organizational chart. A detailed financial analysis projects start-up costs, revenue, and profitability over three years, including pro forma financial statements and ratio analysis. Potential risks such as cybersecurity, partner, and economic risks are also addressed, with an implementation plan outlining pre-operation and operating activities. The plan concludes with references and appendices, providing a complete overview of the proposed business venture.

FACULTY OF ACCOUNTANCY, FINANCE
AND BUSINESS
BBDM3303 ENTREPRENEURSHIP
BACHELOR OF BUSINESS (HONOURS) IN
HUMAN RESOURCE MANAGEMENT
[2RHR2]
LECTURER : DR. JAMES TEO
TUTOR : DR. JAMES TEO
TUTORIAL : GROUP 2
SUBMISSION DATE : 10th JAN 2020
WORD COUNT : 8402 words
MARKS AWARDED
STUDENT NAME STUDENT ID NUMBER
1. CHONG KAH WAI (CU) 19WBR07921
2. EMILY CHEE MENG YEE (CU) 19WBR07923
3. LOO HONG LIN 19WBR07938
4. SAW XIAN WEI 19WBR07941
5. SIEW REMY AARON 19WBR07943

KOLEY UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
PLAGIARISM DECLARATION STATEMENT
Read, complete and sign this statement to be submitted with your written work
We confirm that the submitted work are all our own work and are in our own
words.
Programme : RHR
Tutorial Group : 2
Date : 10th January 2020
Name (Block Capitals) Student ID No. Signature
1. CHONG KAH WAI 19WBR07921 ………………………
2. EMILY CHEE MENG YEE 19WBR07923 ………………………
3. LOO HONG LIN 19WBR07938 ………………………
4. SAW XIAN WEI 19WBR07941 ………………………
5. SIEW REMY AARON 19WBR07943 ………………………

ASSESSMENT CRITERIA &MARKING RUBRIC: BUSINESS PLAN (CW 3)
Expectations Marks
(max)
Marks Comments
Industry Analysis:
Relevance and depth of the research done on the pertinent industry, the
market for the product/service as well as the potential competitors. The
use of tools of analysis like Porter’s 5 Forces, and/or PEST/PESTEL
10
Marketing Plan:
Market segmentation and proper identification of the target market;
discussion on market trends; logical & reasonable basis of revenue
projections. Detailed competitor analysis.
10
Discussion on the marketing objectives and marketing strategy,
including the marketing mix: the 4Ps- product, pricing, place of sale
(distribution channels) and promotion. 10
Operations Plan:
Clarity, relevance, and comprehensiveness (refer to the detailed
requirements in the Coursework Specs)
10
Management Plan:
Clarity, relevance, and comprehensiveness (refer to the detailed
requirements in the Coursework Specs)
5
Financial Plan:
Estimation of the initial capital funding required for start-up costs, pre-
operating expenses, deposits/prepayments, and working capital 10
requirements for the first few months of operation. Table of accounting
assumptions used in preparation of the pro forma accounting
statements, including workings showing the basis of the sales
projections.
The completeness and accuracy of the required 3 years pro forma 10
income statements, cash flow statements, and balance sheets.
Ratio analysis and breakeven analysis (including interpretation) 5
Critical Risks Analysis:
Relevance and comprehensiveness (refer to the detailed requirements
in the Coursework Specs)
5
Implementation Plan:
Detailed explanation of the implementation steps – the logic,
comprehensiveness & reasonableness of the steps &
timelines/deadlines. The use of visual-aids like Gantt charts to depict
5

the milestones.
Overall feasibility:
This business plan is judged on its overall feasibility taking into
account the whole business plan, in particular the marketing
and financial plans.
10
Format and Cohesiveness of the Business Plan:
Understood and applied faithfully the instructions pertaining to the
report structure/format. The report has been presented in a clear, easy-
to-understand, and cohesive manner.
A complete &well-written Executive Summary.
Proper referencing using the TARUC Harvard Referencing System.
10
TOTAL MARKS 100

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
COURSEWORK FEEDBACK FORM
COURSE CODE/ COURSE TITLE: BBDM3303 ENTREPRENEURSHIP-
NAME OF STUDENT(s): ID No:
1) CHONG KAH WAI 19WBR07921
2) EMILY CHEE MENG YEE 19WBR07923
3) LOO HONG LIN 19WBR07938
4) SAW XIAN WEI 19WBR07941
5) SIEW REMY AARON 19WBR07943
PROGRAMME: RHR
YEAR OF STUDY:
SEMESTER: 2
ACADEMIC YEAR: 2019/2020
GROUP NO:
COURSEWORK NO: NATURE OF COURSEWORK:(e.g.
presentation, Q&A, individual /
group assignment, etc)
MARKS AWARDED:
COMMENTS :
Student’s
Acknowledgement:
Date: Lecturer/Tutor’s
Signature:
Date:

EXECUTIVE SUMMARY
Dream Team is a company planning to create and launch an all-new application that aims to ease
the planning and execution processes of any dream vacations and trips within Malaysia. The
application is known as ‘Dream Trip’, a user friendly application that provides five main
functions for users, which are booking of mode of transport, booking of accommodation,
navigation functions, itinerary recommendations, and translation services all in one application
that helps users plan the trip easily and go through the trip with maximum convenience for start
to the end. Consumers will be able to customise their own trip package based on their own needs,
preferences and budget. We aim to be recognised as one the top companies in Malaysia which
carries the reputation of creating the best travelling experiences through the application, by
providing the best quality of services to maximise customers’ satisfaction and convenience. This
company is started by a team of five people at the year of 2019. The team consists of members
with high qualifications and coming from a background of years of experience in both IT and
travelling professions.
This business proposal points out the crucial parts of this business, including the industry
analysis, marketing analysis, operation analysis, management, and financial analysis. First and
foremost, the industry analysis is done using the PEST analysis and Porter’s Five Forces Model
that looks into the competitive forces that may affect the industry’s profitability, and determines
which industry our company will be located in as well as the purpose of our services. Both
analyses show that the industry is worth venturing in as the threats imposed are generally in the
low to medium category and the external factors are generally favourable towards the company.
Furthermore, the marketing analysis states the market size, needs, trend and growth, and all
factors are expected to rise in the future. The company will be promoting the product base on the
locations of the product, gender, benefit sought, and life cycle of the customers. The target
market for this application will be focused on users aged 18 onwards, and consumers from all
income groups as consumers generally are able to customise their trip packages according to
their needs and budget.
The operation analysis will also be included in this proposal. The main business premise is
planned to be located at a strategic business centre which is Sunway Velocity. Sunway Velocity
business centre provides the advantage of big space and low rental with reasonable utilities such

as internet services. The analysis also states the equipment needed, the potential costs, and the
personnel needed. The management part includes the general personal details of the five key
members from the team. A well-constructed organisational chart will also be included with the
amount of expected salary to be given as an information for potential investors.
Moreover, according to the financial analysis, it is estimated that the estimated start-up capital is
RM284,232, with RM1,000,000 from the SME bank loan. The estimated revenues for year 1 is
RM3,532,902, year 2 is RM3,638,889, and year 3 is RM3,748,056. The estimated net profit
generated is RM776,185 at year 1, and is expected to rise annually which are RM1,080,087 at
year 2, and RM1,152,437 at year 3. The year ending cash balance for 3 consecutive years are
RM1,057,666, RM1,936,031, and RM3,051,527. The breakeven value is RM2,517,121, which
means our company needs to achieve a sales revenue that is higher than RM2,517,121 in order to
make a profit.

TABLE OF CONTENT
TITLE PAGE NUMBER
1. Introduction 1
2. Industry Analysis
2.1 PEST Analysis
2.1.1 Political Factors
2.1.2 Economic Factors
2.1.3 Social Factors
2.1.4 Technological Factors
2.2 Porter’s Five Forces Model
2.2.1 Threats of New Entrants
2.2.2 Threats of Substitutes
2.2.3 Buyer Power
2.2.4 Competitive Rivalry
2
2
2-3
3
4
5
5
5-6
6
6-7
3. Marketing Plan
3.1 Market Analysis
3.2 Market Size
3.3 Market Needs
3.4 Market Trends
3.5 Market Growth
3.6 Market Segmentation & Target Market
3.6.1 Demographic (Age)
7
7-8
8-9
9
9-10
10
10

3.6.2 Pyschographic (Lifestyle)
3.7 Positioning
3.8 Competition Analysis
3.8.1 Indirect Competitors
3.9 Marketing Mix
3.9.1 Marketing Goals
10-11
11
11
11-14
14
15-17
4. Operations
4.1 Business Premises
4.2 Operation Procedures
4.3 Personnel & Equipment needs and uses
18
18
18-20
5. Management
5.1 Management Team
5.2 Legal Structure
5.3 Organisational Chart
5.4 Professional and Advisory Support
21
22
22-23
23
6. Financial Statement
6.1 Start-up Capital
6.2 Table of Assumption
6.3 Pro forma Income Statement
6.4 Pro forma Cash Flow Statement
6.5 Pro forma Balance Sheets
6.6 Ratio Analysis and Break-even Analysis
23
23-24
24
24-25
25
25-27

7. Potential Risk Factor
7.1 Cybersecurity Risk
7.2 Partner Risk
7.3 Technology Risk
7.4 Operational Risk
7.5 Economic Risk
27-28
28
28-29
29
29
8. Implementation Plan
8.1 Pre-operation Activities
8.2 Operating Activities
30
30
9. Reference 31-33
10. Appendix 34-49

1
INTRODUCTION
Dream Team is a pioneering company in the tourism industry of Malaysia in incorporating the
innovation of the latest technology into making the industry better. Dream Team had created a
new application named “Dream Trip” that eases the processes of planning any trip within
Malaysia. Dream Trip provides an array of services that helps any tourists, no matter domestic or
foreign, to easily and conveniently plan from top to bottom for any trips within Malaysia. The
services provided through the application includes: booking of accommodation, booking of
tickets for mode of transportation, itineraries recommendations, navigation services, and
translation services. Dream Trip aims to provide excellence in providing the best products and
services to customers and maximum convenience to ensure customer satisfaction at all times. At
just one click, tourists from all over the world will be able to plan for the trip to anywhere in
Malaysia based on their preferences.
Dream Trip envisions to be the top application in Malaysia which carries the reputation of
creating the best travelling experiences for tourists. The mission statement of our company is to
provide customers with a memorable and meaningful experience throughout the trip by offering
the best quality of services at all times. Moreover, Dream Team’s core value is reliability. The
company aims to provide trustable and accurate information to all consumers and all customers’
details will be securely protected under mandated law and regulations. Furthermore, the
company’s second core value is efficiency. Dream Team aims to executing full diligence in
serving all enquires by customers within a short frame of time, and ensuring that all services
provides full satisfaction to all customers. The next core value is convenience, where Dream
Team developed the Dream Trip application to enable access their requirements easily while
planning for their trips with suggestion and filter function, in addition of translation system to
deal with language barrier during the trips.

2
2. INDUSTRY ANALYSIS
Dream Team is located in the tourism industry. Since Dream Team aims to cover trips within
Malaysia, it is specifically located within the tourism industry in Malaysia. First, we will perform
a general PEST Analysis on this industry, followed by a more specific tool used for the industry
which is the Porter’s Five Forces Model.
PEST ANALYSIS
2.1.1 Political factors
Malaysia is generally a stable country. It pursues the principles of peace and neutrality in
developing and implementing its foreign policies. Malaysia maintains close relations to several
neighbouring countries such as Singapore, Thailand, Indonesia and China.
The new government led by Dr. Mahathir had planned to implement new changes to improve the
tourism industry. This can be evident from an interview with Dr. Mahathir where he emphasised
the need for more hotels and restaurants to meet the huge demand from tourists and as an effort
to help the local community. The idea and effort of the development of this industry is included
in the 9th Malaysian Plan and onwards. One of the new implementations by the new government
is the establishment of the Islamic Tourism Centre (ITC) that is under the Ministry of Tourism.
This establishment helped to promote Islamic tourism, and made Islamic tourists feel more
welcomed and comfortable as the other non-islamic tourists. Furthermore, the government will
also review the tourism tax charged to tourists. Hence, this is also a good signage for the tourism
industry.
Although Malaysia is known for its strict rules, tourists who are visiting Malaysia for not more
than a month does not require a visa from the Malaysian Immigration Department. As long as the
foreign tourists understand and follow the conditions and laws implemented in Malaysia, there
should not be any major issues for tourists to travel to Malaysia.
2.1.2 Economic factors
According to the projection made by the International Monetary Fund (IMF), Malaysia is
number 37 in the ranking of global GDP. The total GDP in the year of 2018 was USD358,579
million. Malaysia has a healthy, robust, and industrialised economy. The Malaysian economy is