Our Paper Work

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P/S: this is just a draft. Not formally written.

Problem Statement : 

The main problem for small and medium bakery business in Malaysia is not at the material cost or production cost,but its in man power source.For example in my country,employer can acquire cheap labour cost from foreign workers.Compare to local workers,their pay are much more higher than the foreign workers.There are pros and cons to this fact.In my experience,local workers were lack in disciplines and attitude.However,communication with them much more easier compare to foreign worker.I can trained and teach any new local workers how to make decent bread and make them understand how the entire production running in less than two weeks but for foreign workers that usually doesn’t speak fluent English or Malays it can takes more than a month.

The problem with local workers is they’re always doesn’t give 100% commitment in their job. I can say that i prefer working with foreign workers because they’re actually come here to my country to earn money to feed their family back home.Let me give you one usual scenario:
Let say you manage or supervise medium bakery shop.You employ 3 foreign workers from Bangladesh.They’re new to your country, doesn’t speak fluent English,and know nothing about making bread or never work with its ingredients.First of all,you need to trained them to mix,shape and baked the bread.In the mean time,they need to learn memorise the name of the bread they make.They need to know exact ingredient and measurement for each type of bread and how to group them.Well like i said earlier,this learning process can take more than a month depend on their capability to adapt new knowledge.There are no problem if each of them work hard or show their effort to learn by any mean.But the problem occurs if one of them not given attention,or doesn’t show interest to learn harder or in other word,lazy.When you try to fix this problem by acting straight in order to disciplined this worker,or the last result you fired the lazy one,there is 90% chances that another 2 of his friend will follow him to quit the job.When this happen,you now realise that all effort you give to teach and trained these 3 workers are useless.

This type of problem actually happen in most bakery shop in my country.The employer need to decide whether to employ locals or foreign worker.Both of them have pros and cons.The employer need to choose either low or high cost worker they need,but the stability in production is more critical for any business survival.Yes,what i can conclude here is having foreign worker will bring more stability in production but it’ll need more patient and effort to make it successful choices.

Taken from an article, http://breadpastry.blogspot.com/2009/02/main-problem-for-small-and-medium.html

The problem is simple: There is a shortage of trained bakers. And trained bakers are a key component to the continued growth and prosperity of the industry.

Read more: http://baking-management.com/equipment/bm_imp_16050/#ixzz2CIevTao2

And there is also a statement where ‘Gardenia’ – the leading brand in Malaysia has been associated with politics. If we want to conclude this as one of our problem statement, I don’t mind.

Cost Structure:

This i an example of Secret Recipe financial plan.

Startup CostsRM
Furniture & Fitting                                           35,000
Renovation                                                          90,000
Kitchen Equipment                                          55,000
Total Capital Expenses                               = 180,000
Franchise Fee                                                     120,000
Franchise Fee – Registration                        1,000
Franchise Fee – Processing Fee                   50
Business License                                                3,480
Grand Opening Advertising                          80,000
Rental (Deposit)                                                 15,000 
Total Deposit & Prepayments                    = 219,530
Startup Costs                                                    = 399,530 
EquityRM
Capital                                                                    150,000
Long-term Liabilities
Long-term loan                                                  300,000
Total Equity and Libilities                         450,000
Calculation of Working Capital
Total Equity and Liabilities                          450,000
(-) Startup Costs                                                – (399,530) 
Working Capital                                                 50,470
I’ve been considering if we do our business online. It will reduce our cost. Do leave comments on this.
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