Journal Word: Skripsi S1 Business Administration Oleh Muhammad Irfan (Business Plan)

Word: Skripsi S1 Business Administration Oleh Muhammad Irfan (Business Plan)

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CHAPTER 1

INTRODUCTION

1.1 Name and Address of the business

Name               : PT. Nuansa Farmindo

Website           : nuansa-farmindo.irfan.id (temporary)

Address           : Lampenerut, Aceh Besar, Aceh, Indonesia

1.2 Name and Address of Principal

Name               : Muhammad Irfan

Address            : Jl. Sultan Malikussaleh, Lr Anggrek, Lhong Raya, Kec Banda Raya, Banda Aceh, Aceh, Indonesia

1.3 Nature of Business

Farming, Chicken Eggs, Livestock

 1.4 Statement of Financial Method

PT. Nuansa Farmindo initial financial requested is IDR 750,000,000, IDR 500,000,000 from Ower cash and IDR 250,000,000 from investor. This cost will cover every company need for starting the business and cash on hand.

1.5 Statement of Confidentially Report

This document and the information in it are provided in confidence, for the sole purpose of thesis requirements, and may not be disclosed to any third party or used for any other purpose without the express written permission of the principal mentioned above.

 

 

CHAPTER II

DESCRIPTION OF VENTURE

 

2.1     Product Description

Nowadays when people began to realize the importance of nutrition in the foods that must be met. One of the factors that most in the note by the public is the protein needs can be met by vegetable protein or animal protein. Thus, the need for protein is increasing every year, especially animal protein. One of the cheapest and affordable animal protein is the eggs. Eggs are one of the products who has a protein needed by the human body.

Eggs can be the best food for breakfast, especially if it is to replace foods that are almost instantaneous. Changing a habit of breakfast foods such as instant noodles, fried rice, or bread with egg can make us become better health. Actually cultivate the egg is not very time consuming, so it is also good for people who have limited time in the morning. There are many benefits of eggs if entered into your breakfast menu, one of which is because it can withstand satiety become longer. Protein in eggs are known to make fuller stomach, when compared to the protein in wheat. An egg already provides complete nutrition to live our daytime activities, which provide calories, protein, fat, and cholesterol. Do not think all that cholesterol is not good for our health. Cholesterol in eggs is a good type of cholesterol, which is necessary for the body.

Therefore, with increasing demand for eggs which were not offset by the supply of eggs. In Aceh, the demand for chicken eggs by the consumer up to 1 million eggs per day that cannot be met by local chicken farmers so as to make the government had to import eggs from Medan. Only able to supply local breeder chicken eggs by 30% and the remaining 70% is imported from outside Aceh. (Liputan Aceh, 2015)

With issues imbalance between supply and demand, PT. Nuansa Farmindo present to cover the shortage supply of chicken eggs as a form to help the government of Aceh.

Therefore, PT. Nuansa Farmindo is committed to meet the nutritional needs of the people of Aceh by providing protein chicken egg product which is one of the animal protein. With sufficient resources, company will continue to grow rapidly to reach 1 million eggs in order to meet consumer demand in particular areas of Aceh.

2.2     Vision and Mission Statement

2.2.1    Vision

To be a leading and trusted provider of affordable protein food products in Aceh.

2.2.2    Mission

Produce and sell chicken eggs that have high quality and innovate.

2.2.3    Logo and Brand description

            Along summited name of business, the company also has created logo as branding image.

Figure 2.1 PT. Nuansa Farmindo Logo

PT. Nuansa Farmindo use flat design logo with one color only to follow design trend in 2016. Inside the logo, there is farm building picture to describe company that presenting a farming company image.

PT. Nuansa Farmindo presented in green color as promotes a love of nature and growth health in family. In circle has a cage and sun presenting spirit of produce and serve the costumer for satisfaction.

2.3. Size of Business

PT. Nuansa Farmindo is categorized as micro, small and medium enterprises with predicted annual sales at IDR 1,000,000,000 that written in UU No. 20 Tahun 2008. Each year, company expect to growth more and fast to fulfill the target as the biggest company that produce eggs in Aceh.

2.4. Office Equipment and Personnel

PT.  Nuansa Farmindo office will be located at Jl. Lampenerut, Aceh Besar, Aceh, Indonesia. To run the business, PT. Nuansa Farmindo will build 1 Office and 2 Cage as needed for operation.

2.5. Background of Entrepreneurs

Muhammad Irfan is a Business Administration student of President University and an originator of the idea of PT. Nuansa Farmindo. He sees the opportunity of making the business idea from the potential of selling eggs product in Aceh to community and SME, who need chicken eggs protein.

By see the lack of local chicken egg production and the high number of eggs imported from outside Aceh, create opportunities to raise laying hens in Aceh is very big potential with high market demand which increasing every year.

2.6. Business Model

The format of this Business Model is following the example from its inventor, Muhammad Irfan. There are 9 points of this model, which are customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure.

1. Customer Segments

Nuansa Farmindo applies multi-sided platform market between service consumers and service vendors. PT. Nuansa Farmindo’s target consumers limitless. PT. Nuansa Farmindo will reach as many as potential costumer who use eggs as daily consume. Basically, PT. Nuansa Farmindo will distribute the eggs to Aceh Government, Retailer and SME’s in Aceh.

2. Value Proposition

As the value from the pricing to consumers, PT. Nuansa Farmindo gives the easiness of ordering service vendors corresponding to the consumers through their smartphones or other gadgets without visiting the vendor places. The consumers simply just have to sign up on the website and they will be free to choose order as much as they need.

PT. Nuansa Farminda also has loyalty membership which can be used by loyal business owner to own discount or other benefit by choosing us as partner

  1. Channels

There will be 2 types of channels, those are PT. Nuansa Farmindo website, and direct selling. Retailer or SME’s owner can order eggs from PT. Nuansa Farmindo website like purchasing product online of they also can buying directly by coming to PT. Nuansa Farmindo farm.

4. Customer Relationships

Nuansa Farmindo will make customer relationship by giving latest newt about eggs update price thought website and phone to specific costumer (Business to Business member).

5. Revenue Streams

PT. Nuansa Farmindo focuses the revenue stream by gain selling eggs. In addition, we will also sell meat of laying hens which are no longer productive and selling the chicken manure fertilizer.

6. Key Resources

PT. Nuansa Farmindo that all the key resources are capable to support all the activities for implementing the value proposition, through Chicken Expert, Capital, Employees and Marketing Tools (Social Media and Website).

a) Chicken Expert is the man behind healthy chicken. Chicken Expert will make sure chicken health and productivity to produce more eggs.

b) Capital is required for supplying the financial expenses and activities of PT. Nuansa Farmindo as the profit organization.

c) Marketing Tools (Social Media and Website) to introduce and create brand awareness of the product and services for the target market

7. Key Activities

Nuansa Farmindo main key activities is produce daily chicken eggs and supply to the costumers.

  1. Key Partners

As new business, PT. Nuansa Farmindo will have exclusive relationship with other company with same business to help fill in company needs, such as featured laying hens, placemat eggs and chicken feed.

In addition, PT. Nuansa Farmindo will also work closely with local government to involve in company research & development and PT. Nuansa Farmindo will join “Forum Peternakan Ayam Petelur Aceh” to discussion of chicken farm issues.

  1. Cost Structure

Referring to the Key Resources, Production will become the highest expense. Production cost will be including chicken feed which is the most expense cost. There is also transportation cost that will have divided by two, marketing transportation cost and distribution transportation cost. Every year, company also buy Day Old Chicken (DOC) as replacement non-productive chicken.

 

CHAPTER III

ENVIRONMENTAL AND INDUSTRIAL ANALYSIS

 3.1. Environmental Analysis

3.1.1. Socio-Culture

Eggs are one of the most sought after products by the peoples. Eggs have become a daily meal for the peoples, ranging from daily household needs, egg needs for making cakes and egg needs to make a delicious dish commonly sold by traders.

In addition to having good protein for the body, eggs are a delicious meal to eat anytime. Therefore, no wonder many people who consume them. With an affordable price and easy in though, eggs become the main choice of Indonesian people, especially Aceh for the consumption every day.

3.1.2. Legal Concerns

  1. Nuansa Farmindo business is conducted in Indonesia as one of the law states, there will be several legal concerns based on UUD 1945 and Government regulations as following:
  2. According to Pasal 90 ayat (1) UU No. 13 Tahun 2003. Minimum Wage Rate which is based on Government regulation that should be fulfilled to set the amount of employees’ salary as stated. This encourage PT. Nuansa Farmindo to ensure that all the employees get the proper salaries based on law statement.
  3. According to Pasal 77 ayat 1, UU No.13/2003, Work time in PT. Nuansa Farmindo which should be given for the employees as stated in UU. PT. Nuansa Farmindo will determine by following the law to give the proper work time and time off that impacting the employees performance in the future.
  4. According to Pasal 4 ayat (1) huruf c Permendag 46/2009, Allowance and NPWP based on the UU for opening a company or firm as stated. PT. Nuansa Farmindo ensures that the employees will be given the allowance based on the government law and company regulation and the NPWP to encourage the employees to fulfil their responsibility to pay taxes.
  5. According to UU. No. 36 Tahun 2008 tentang Perubahan Keempat Atas Undang-Undang No. 7 Tahun 1983 Tentang Pajak Penghasilan” and ”Peraturan Pemerintah No. 46 Tahun 2013 Tentang Pajak Penghasilan Atas Penghasilan dari Usaha Yang Diterima atau Diperoleh Wajib Pajak Yang Memiliki Peredaran Bruto Tertentu”. PT. Nuansa Farmindo are submissive to the government rules and law concerning the payment of revenue tax from PT. Nuansa Farmindo’s income and PT. Nuansa Farmindo are ready to follow the legal proceedings if PT. Nuansa Farmindo does not fulfil the tax regulation in the future.

3.2. Industry Growth

Aceh is a province with a high demand for eggs. It can be seen from the growing need of the community and SMEs in Aceh. However, the increase in the number of eggs ever-increasing demand not balanced by the production of a local breeder laying hens. Thus, each day the Aceh government should issue IDR 1 billion to buy a chicken egg needs as many as 1 million eggs were distributed throughout Aceh (aceh.tribunnews.com, 2013).

Local breeder laying hens only able to cover 30% of the eggs, while 70 % comes from the supply outside of Aceh.

Table 3.1 Laying Chicken Egg Population in Aceh (2011-2015)

YearNumber of Population (per-chicken)
2011267,741
2012266,174
2013243,270
2014209,476
2015219,950

Sources: Processed from Badan Pusat Statistik (BPS), 2015

The growth of the population of laying hens unstable also one pullback industrial poultry farm in Aceh. As shown in Table 3.1 is the data layer chicken population in Aceh over 5 years ago, which in 2011 to 2014 a decline in the population of laying hens. This is due to population decline in the subsidy of no more fodder, particularly laying hens which impose entrepreneurs who are mostly small-scale farmers out of business (www.RRI.or.id, 2014).

Table 3.2 Laying Chicken Egg Production in Aceh (2011-2015)

YearLaying Chicken Egg Production (Tons)
20112,419
20123,640
20132,198
20141.892
20151,987

Sources: Processed from Badan Pusat Statistik (BPS), 2015

 

Based on Table 3.2 can also be seen with the decline of the number of laying hens eat egg production was also continued to fall from year to year. Therefore, the supply of egg products is small and demand is high, this is an opportunity to break into the business of chicken eggs.

PT. Nuansa Farmindo present to answer the shortage of chicken egg production to feed the chicken eggs in society and SME in Aceh.

3.3. Industry Structure

There are the characteristics of the current industry as following:

  1. Consumers characteristics

Chicken eggs have a large market. Sales of unlimited eggs will be social because the price is cheap. All segments of society can feel the pleasure of chicken eggs.

  1. Competition

With the few companies of laying hens in Aceh, the competition among farmers was very small. Due to the high demand of chicken eggs in Aceh, all laying hens in Aceh also share the needs of to fulfil local eggs.

The competition will be felt with the presence of eggs from Medan, because currently almost 70% of eggs in Aceh are imported from Medan.

Therefore, PT. Nuansa Farmindo will improve the quality of eggs so as not to lose competitiveness with chicken eggs from Medan.

3.4. Key Success Factors

  1. Chicken Health and Productivity

In order to make company running and growth, PT. Nuansa Farmindo will maintaining seriously about chicken health, and increasing productivity of chicken in producing eggs. Chicken will get treatment by giving vaccine regularly.

2. Rational Price

The determined price for the customers is what the service providers offer, so PT. Nuansa Farmindo guarantee all the price offered are not unfair for the sake of customer satisfaction

3. Customer satisfaction

PT. Nuansa Farmindo highly expect the customer satisfaction as the important thing to run the business since they are the people who directly use our product and they are going to be satisfied if the product given are well and valuable.

3.5. Industry Trends

          Trend of livestock companies in Aceh is not good because of the lack of investor intention to invest capital. However, with the encouragement and protection of the Aceh government to lobby investors to invest in Aceh’s livestock, this is a good start to making the livestock company in Aceh in view of its steady security and huge shelter.

Even the Government of Aceh promised to absorb the results of local farmers to reduce food dependence on the results of other regions.

The offer from government that promised security for investor can be reference that there is a certainty to improve the positive trend for the investment climate in Aceh, especially for livestock. Because all this time, the sluggish investment trend in Aceh due to the issue of security and business licensing is difficult.

The good news also comes from the new governor, the elected governor of 2017 has a veterinary background, so this could be fresh wind for the farmers because the elected governor is known to be keen to see opportunities in the regional industry.

3.6. Industry Analysis

Below is PT. Nuansa Farmindo SWOT analysis and Five Forces analysis.

3.6.1. SWOT Analysis and TOWS Matrix

3.6.1.1. Strength

4 method of sales (2 direct selling and 2 indirect selling)

          3.6.1.2. Weakness

  • Egg prices were not stable
  • High production costs

3.6.1.3. Opportunity

  • Major support from the government of Aceh to local farmers for producing eggs
  • High demand for chicken eggs. Both from citizen and business matters for SME’s.

         3.6.1.4. Threat

  • The risk of disease in chickens.
  • Security threats from several communities

Figure 3.1 TOWS Analysis

Strengths

 

Weaknesses
– 4 method of sales (2 direct selling and 2 indirect selling)

 

– Egg prices were not stable

– High production costs

 

OpportunitiesStrength to OpportunityWeakness to Opportunity
– Major support from the government of Aceh to local farmers for producing eggs

– High demand for chicken eggs. Both from citizen and business matters.

 

With the help of a government that fully supports Aceh local egg products, then selling eggs would be easier.Not stable price and high production costs will be covered by high demand from people needs to purchase eggs.
ThreatsStrength to ThreatsWeakness to Threats
The risk of disease in chickens.

Security threats from several communities

PT. Nuansa Farmindo will insure the properties to secure from demand and other threats for several communitiesWith high demand on chicken eggs, PT. Nuansa Farmindo will create own chicken feed to reduce production costs if feed become expensive.

 

3.6.2. Five Forces Analysis

3.6.2.1. Competitive Rivalry

Medium

  • Many similar competitors in product marketplace
  • Low competitor in Aceh, high competitor in Medan

The competitors are having the same concept with PT. Nuansa Farmindo, which is to sell eggs. Meanwhile, PT. Nuansa Farmindo also focusing on SME’s which is use eggs as main ingredient

For the competiors with the power of capital, marketing budget, and existing markets, PT. Nuansa Farmindo will growth fast along with new investment series.

3.6.2.2. Customer Bargaining Power

Low

  • Chicken eggs price are fixed from government, can’t be change by costumer

Chicken eggs price set up by government time to time, it will depend on supply and demand. The price will be high if the supply was high.

 

        3.6.2.3. Supplier Bargaining Power

          High

  • Most chicken feed are popular and easy to access.
  • Some of supply product price are not stable.

Supplies are the biggest problem in farming industries, especially chicken feed.

         3.6.2.4. Threats of New Entrants

          Low

  • Not many farm companies in aceh

In Aceh, farming company growth is still low. This is happening because there is no new investor come to Aceh.

         3.6.2.5. Threat of Substitutes

         Low

  • The people still love eat chicken eggs

Chicken eggs demand still high since eggs can’t be replacing by other animal protein. People still love eat chicken eggs

PT. Nuansa Farmindo has big opportunity to growth farming company in producing chicken eggs. The competition only has between supplier from Medan, which is will exporting eggs from Medan to Aceh, but in Aceh the competition between local farmer are low because there is no many company in same field. With high demand, sometimes eggs price will be high as well.

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