Business Project 1

AREATWO ENTERPRISE

TABLE OF CONTENT

1.0

2.0

3.0

4.0

5.0

INTRODUCTION

1.1

Objective of the business project

1.2

Overview of the company

1.3

Background of company

1.4

Background of owner

1.5

Product and service specialist

MALAYSIAS ECONOMIC ANALYSIS

2.1

10

Industry Analysis in Malaysia

FINANCIAL ANALYSIS

12

3.1

Profit and Loss

12

3.2

Balance Sheet

13

PESTLE ANALYSIS

14

4.1

16

PESTLE Analysis for Areatwo Enterprise

SWOT ANALYSIS

18

5.1

21

SWOT Analysis for Areatwo Enterprise

6.0

CONCLUSION

22

7.0

RECOMMENDATION

24

8.0

REFERENCES

25

9.0

ATTACHMENT

26

Business Project 1

1.0

INTRODUCTION

1.1

Objective of the business project

AREATWO ENTERPRISE

One of the requirements set by the Universiti Kuala Lumpur Business School in
completing its Master in Business Administration (Entrepreneurship) program is to do a
feasible study on an organization owned by a Bumiputra entrepreneur and identify
problems faced by the organization and recommend solutions to solve or overcome
these problems.
In order to identify the problems faced by the entrepreneur, we have to do some
analysis on the companys internal and external environment, such as the SWOT
analysis, PESTLE analysis, Five Porters analysis, Financial Ratio analysis and other
analysis which we think would be relevant to our study.
From the analysis, we will have to identify the potential problems that cause the
organization from expanding or growing and later provide recommended solutions to the
organization as a whole.
I have chosen an advertising company for my Business Project which is located at Bukit
Beruang, Melaka. My study begins with the overview of the company, background of the
company, Malaysias economy analysis, the industry analysis, the company analysis
and the potential problems or issues.

Business Project 1

1.2

AREATWO ENTERPRISE

Overview of the company

Areatwo Business Enterprise was registered on 19 May 1997 and is a sole proprietor
who is fully cultivated by Natives.
Areatwo Enterprise early inception of this company just act as suppliers or trading
house for the supply of souvenir items, clothing and equipment, stationery and furniture.
Among the huge success Areatwo Enterprise in the supply company that has managed
to get three-year contract to supply T-shirt, baseball cap and bottom track to the
National Service Training Program.
However the support and trust from the customers Areatwo Enterprise business a step
ahead into manufacturing of advertising and design. Almost ten years of experience in
the company can promise the quality and competitiveness of products are good.
In the product range of external and internal signboard, signboards electric shutters,
road safety signboards, silkscreen, banners, buntings, signages and signboards street
name.
Based on experience and business confidence contact this company can capture and
expand business activities if given the opportunity and support at this time and the
future.
Areatwo Enterprise chooses to form this business because from the analysis that had
been made, the market of this industry for the past three years is always increased. This
business plan was created to view and evaluate the proposed of this venture in an
objective, critical and practical manner. With this business plan, the management has a
solid and well grounded information to supplement the planning and decision making
process. By using this business plan, the management will have more realistic and
practical plan.
Besides that, it will make easier to analyze and evaluate the viability of a proposed
venture. It can be used as a basis in determining the viability of a proposed business
venture. It also can convince relevant parties of the investment potential to invest in the
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project. The viability of business plan will boost the confident of interested parties to
finance partially or fully cozy of the venture. It include financial institutions, private or
individual investors, suppliers, government agencies etc. furthermore, it can be as a
guideline in terms of managing the business because it will be an important benchmark
to gauge the progress. Other than that, it will help in terms of allocating the business
resources effectively to avoid unnecessary wastage and to ensure optimum returns on
investment.
The product and services being offered based on responsibility to provide better service
of advertising which is attractive and satisfied the customer. The company mission is to
be leader in each of the market they participate. To make sure the business achieve the
target, they operate the business at 668 & 668-1, Jalan Bukit Melaka 1/3, Taman Bukit
Melaka, Bukit Beruang, 75450 Melaka.
Target market based in Melaka Tengah which are consist 14 areas. Major customer
comes from variety of sector including government sector, private sector, entrepreneurs,
businessperson, government body, private company and also individual who need an
advertising.

Business Project 1

1.3

AREATWO ENTERPRISE

Background of company

Company

: Areatwo Enterprise

Established

: 19 May 1997

Owner

: En. Adzam bin Hashim

Head Office

: 668 & 668-1, Jalan Bukit Melaka 1/3,

Taman Bukit Melaka,
Bukit Beruang, 75450 Melaka

Contact Number

: 06 231 9799

Fax Number

: 06 231 5655

1.4

Background of owner

Name

: Adzam bin Hashim

Date of Birth

: 8 October 1968

Age

: 45 Years

Qualification

: Diploma In Business Studies,

(Majoring Marketing ITM)

Experiences

: 1. Inventory Planner
Kodak (M) Sdn. Bhd. (4 Years)
2. Own business at Phnom Penh, Cambodia (4 Years)
3. Manager at IKSEP Maju S/B
Advertising and Design (4 years)

Fax Number

: 06 231 5655
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1.5

AREATWO ENTERPRISE

Product and service specialist

Manufacturer of advertising displays, internal and external signage, light box, signboard,
road sign, billboard, silkscreen, digital ink-jet printing, bunting, banner, home tech.

2.0

MALAYSIAS ECONOMIC ANALYSIS

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Malaysias economy rebounded considerably well from the 1997 Asian crisis without
incurring in International Monetary Fund loans and hence future debt. Economic
forecasts are optimistic even though there was a deceleration in the economy due to a
slowdown in the market for information technology. Also, macroeconomic numbers
remain stable and there is a strong confidence in the country's future performance.
Therefore, we find Malaysia capable of revitalizing its economy to become one of the
few strong economies in Southeast Asia. This can be attributed to its well sounded
financial and monetary policies as well as the confidence the Malaysian people and
surrounding country governments have in the Malaysian administration. Nonetheless,
some policy changes have to be implemented to guarantee results, including: changing
the exchange rate system, diversifying its export base, furthering financial and trade
deregulation and continuing to reform the financial and corporate sectors.
The Malaysian economy remains surprisingly resilient. In third quarter 2012, its Gross
Domestic Product (GDP) growth moderated to a still commendable 5.2 per cent yearon-year from a revised 5.6 per cent in the second quarter. The growth was driven by
strong domestic demand, with impressive albeit slightly slower year-on-year growth in
private consumption and private and public investment outlays. Net exports had
meanwhile contracted further due to the deterioration in external demand for
manufactured goods and commodities.
The services sector expanded at a higher pace of 7.0 per cent year over year in the
third quarter compared to 6.6 per cent in the previous quarter. The manufacturing sector
is obviously feeling increasingly the heat of negative developments overseas as its third
quarter pace of growth moderated somewhat significantly to 3.3 per cent year over year
compared to the second quarter's 5.6 per cent. The construction sector, which is
benefitting from the on-going implementation of infrastructure projects, expanded a still
staggering 18.3 per cent year over year (2Q2012: 22.2% year over year). In terms of
percentage point contribution towards real GDP growth, services contributed 3.8,
manufacturing contributed 0.8, while construction contributed 0.6.
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Consumer confidence is still holding up and is expected to remain largely intact going
forward, as indicated by the results of Malaysian Institute Economic Research's
Consumer Sentiments Survey. The Consumer Sentiments Index (CSI) ended the fourth
quarter marginally higher at 118.7 points, compared to 118.3 points in the previous
quarter. Of the three components that make up the CSI, Current Financial Position
gained 1.5 points quarter over quarter while Expected Financial Position was flat quarter
over quarter. Expected Availability of Jobs was the only component that registered a
decline (-0.9 points). All three components remain above the neutral 100-point level.
Business conditions in the manufacturing sector, however, have deteriorated somewhat
and could deteriorate further, according to the results of the fourth quarter MIER
Business Conditions Survey. MIER's Business Conditions Index, which had broken
through its 100-point growth-neutral threshold level in the third quarter to settle lower at
96.0 points, fell further in the fourth quarter to register 94.1 points. Both the expected
local sales and expected export sales sub-indices declined slightly in the fourth quarter.
Likewise, the half-yearly FMM-MIER Business Conditions Index settled lower at 88.9
points in the second half compared to 96.8 points previously. The FMM-MIER BCI's
forward-looking expected business conditions index also settled lower at 101.1 points
(1H2012: 120.2 points), an indication that manufacturers have become less confident in
their outlook.
Of the four MIER's sectoral indices, only the Residential Property Index (RPI) came in
higher at 124.8 points in the fourth quarter (3Q2012: 113.6 points), while the Tourism
Market Index (TMI) was largely unchanged at 129.8 points (3Q2012: 129.9 points). The
two remaining sectoral indices, the Automotive Industry Index (AII) and the Retail Trade
Index (RTI), came in significantly lower at 105.4 points (3Q2012: 160.0) and 94.8 points
(3Q2012: 130.2) respectively. The RTI is the only sectoral index to have settled lower at
below the 100-point neutral level.
On account of the results of MIER's fourth quarter surveys, we are keeping to our fullyear 2012 growth estimate at 5.1 per cent in this economic update. Going forward, we
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expect domestic demand to remain resilient and to continue picking up the slack of
weak external demand. We are keeping to our 2013 GDP growth forecast 5.6 per cent
for the time being. As for Malaysia's real GDP growth in 2014, we expect it to register
within the 5.0 and 6.0 per cent range
Inflationary pressures meanwhile remain benign in Malaysia. For the January November 2012, the CPI increased 1.7 per cent when compared to the same period last
year. We are maintaining our inflation rate forecast for full-year 2012 and 2013 at 1.7
per cent and 2.5 per cent respectively and the unemployment rate at the 3.0 per cent for
both years. For 2014, we expect inflation and unemployment to register 2.5 per cent
and 3.0 per cent respectively.
The services sector is now targeted to spearhead economic growth over the next 10
years. And expectations are ambitious. The sectors contribution to gross domestic
product (GDP) is targeted to increase to 66.5% in 2020, valued at RM437.6bil, from
55% in 2008 when it was valued at RM290.5bil.
In most developed countries, the services sector makes up about 65% to 90% of GDP.
In Malaysia, the figure in 2006 was 52%, and it has since grown to 54% in 2007 and
55% in 2008. Tourism is now Malaysias main services export earner. It is an
encouraging trend, and suggests that the country is on course to meeting the target set
by policy planners.
A measure of the services sectors contribution to the economy can be obtained by
looking at its share of exports. It is internationally the norm that services account for
about 20% of total exports.
In Malaysia, the figure for 2007 and 2008, at RM100.9bil and RM102bil respectively,
came up to 17%. This is not an insignificant achievement, but it does not qualify
Malaysia to rank as one of the worlds top exporters of services.

Business Project 1

AREATWO ENTERPRISE

According to the World Trade Organization, eight developing countries are in its list of
the worlds 30 largest exporters of services. Malaysia was ranked 30th in 2008, and so
still has some way to go before it can be considered a major exporter of services.
Where is growth likely to come from? Right now, some 7% of the services sector share
of GDP consists of services provided by the Government. The remainder is the tradable
services sector which has commercial and growth prospects. Tourism, valued at
RM50bil, is now our main services export earner. It grew by 5% in 2008 because of an
increase in tourist arrivals.
Other sectors with prospects for growth are information and communications
technology,

construction,

Islamic

financial

services,

education

and

training,

management services, medical tourism, logistics, and oil and gas services. The
contribution of these sub-sectors to exports remains modest.
2.1

Industry Analysis in Malaysia

The Malaysia advertising industry is one of the most dynamic and active ones around
the region. The Advertising Expenditure or ADEX in Malaysia has been one of the
fastest growing and with the good performance registered for the first 9 months of 2012
despite the global economic slowdown, market analysts have been upbeat about 2013,
hoping that the momentum will carry forward to next year.
However, the general sentiments among advertisers for 2013 might be that it could be a
slower year as compared to 2012. This is mainly due to the fact that there were certain
major global events in 2012 that caused the spike in ADEX not only in Malaysia but also
around the world.
According to Nielsen Media, not including ADEX on the internet, July saw a growth of
6.3% year-on-year which was significantly lower than June where the growth was at
8.2%. This was mainly due to the UEFA Euro 2012 football tournament. For the first 6
months of 2012, ADEX increased by 2.6% as compared to the year before that totalled
to some RM6.1 billion. The largest percentage came from newspapers that covered
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40.4% while free-to-air television was at 27.3% which were both lower than 2011.
Meanwhile, all other media like Pay TV, Radio, outdoor and magazines advertising saw
healthy growth rates. July this year too had a good run as it was when the London 2012
Olympics were held for a month. These figures were healthy and projected a positive
outlook for advertisers and the agencies alike although regions like Europe and the
United States were reportedly facing financial crises throughout.
It was reported that certain agencies have performed extremely well in the Malaysia
with ADEX for the first 10 months of 2012 breaching the RM9billion mark. This was a
good improvement for the same period last year when the ADEX was registered at
RM8.67billion.
On this note, analysts are confident that this momentum will most likely continue to next
year and it would be interesting and surely exciting in the first quarter with festivities like
Christmas, New Year and Chinese New Year coming around.
The main hurdle that 2013 would bring about is that there will be no major events
happening (unlike 2012 with Euro and the Olympics) which means that there might not
be a boost come mid-year, which is usually the slower ADEX periods.
Hence, it is up to the local ministries and businesses to stimulate the market which will
in turn affect ADEX. The outlook for 2013 will most likely be slower than 2012 with a
more steady pace of ADEX throughout the year with minor spikes during the festive
seasons. 2014 would surely be a better year with the World Cup 2014 in Brazil coming
around.

3.0

FINANCIAL ANALYSIS
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Areatwo Enterprise as at 31 Disember 2011 (Refer attachment 1)

3.1

Profit and Loss

Revenue

362,461

(-) COGS

174,840

Gross Profit

187,621

(-) Expenses
Net Profit

137,237
50,384

Gross Profit Margin

51.76%

Net Profit Margin

13.90%

Profit Margin Ratio

It shows how much profit is earned from every RM1 sales that the company made. In
2011, the companys gross profit margin is 51.76% and net profit margin is 13.90%. The
results for the margin are considered to be good.

3.2

Balance Sheet
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AREATWO ENTERPRISE

Current Assets

130,206

Current Liabilities

129,321

Total Debt

129,321

Total Assets

136,044

Current Ratio

1.006

Debt Ratio

95.05%

Current Ratio
One way to determine the liquidity position of the company is through the computation
of current ratio. The companys calculated ratio for 2011 is 1.006.
Current ratio measures the extent to which the companys current liabilities are covered
by its current assets. The ratio for 2011 was a good one. However, the companys
current assets are sufficient to cover its current liabilities. As such, the companys
liquidity position is good.
Debt Ratio
It measures the percentage of funds provided by creditors. Debt ratio calculated for the
company for 2011 is 95.05%. It provides an indication that the companys total liabilities
are almost equal to its total assets and it shows that the companys debt position is not
good.

4.0

PESTLE ANALYSIS
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PESTLE analysis, which is sometimes referred as PEST analysis is a concept in

marketing principles. Moreover, this concept is used as a tool by companies the world
over to track the environment theyre operating in or are planning to launch a new
project/product/service etc.
PESTLE is a mnemonic which in its expanded form denotes P for Political, E for
Economic, S for Social, T for Technological, L for Legal and E for Environmental. It gives
a birds eye view of the whole environment from many different angles that one wants to
check and keep a track of while contemplating on a certain idea/plan.

Diagram 1
It is very critical for one to understand the complete depth of each of the letters of the
PESTLE. It is as below:
1. Political: These factors determine the extent to which a government may

influence the economy or a certain industry. [For example] a government may

impose a new tax or duty due to which entire revenue generating structures of
organizations might change. Political factors include tax policies, Fiscal policy,
trade tariffs etc. that a government may levy around the fiscal year and it may
affect the business environment (economic environment) to a great extent.

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2. Economic: These factors are determinants of an economys performance that

directly impacts a company and have resonating long term effects. [For example]
a rise in the inflation rate of any economy would affect the way companies price
their products and services. Adding to that, it would affect the purchasing power
of a consumer and change demand/supply models for that economy. Economic
factors include inflation rate, interest rates, foreign exchange rates, economic
growth patterns etc. It also accounts for the FDI (foreign direct investment)
depending on certain specific industries whore undergoing this analysis.
3. Social: These factors scrutinize the social environment of the market, and gauge

determinants like cultural trends, demographics, population analytics etc. An

example for this can be buying trends for Western countries like the US where
there is high demand during the Holiday season.
4. Technological: These factors pertain to innovations in technology that may

affect the operations of the industry and the market favorably or unfavorably. This
refers to automation, research and development and the amount of technological
awareness that a market possesses.
5. Legal: These factors have both external and internal sides. There are certain

laws that affect the business environment in a certain country while there are
certain policies that companies maintain for themselves. Legal analysis takes into
account both of these angles and then charts out the strategies in light of these
legislations. For example, consumer laws, safety standards, labor laws etc.
6. Environmental: These factors include all those that influence or are determined

by the surrounding environment. This aspect of the PESTLE is crucial for certain
industries particularly for example tourism, farming, agriculture etc. Factors of a
business environmental analysis include but are not limited to climate, weather,
geographical location, global changes in climate, environmental offsets etc.

4.1

PESTLE Analysis for Areatwo Enterprise

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Political

AREATWO ENTERPRISE

a) To help new entrepreneurs get started, the Malaysian

Government provides various types of funding. These funds,
available in the form of grants, loans and incentives are
available for various industrial sectors and enterprises.

Loans from Government Financial Institutions

Bank Negara Malaysia New Entrepreneurs Fund

Financial Schemes under Ministry of International Trade and

Industry (MITI) for SMEs

Small and Medium Industries Development Corporation

(SMIDEC)

Franchise Investment and Financing Schemes

MARA Business Financing for Bumiputera (Bahasa version

only)

MATRADE Market Development Fund

Malaysian Technology Development Corporation (MTDC)

Dana Projek Usahawan Bumiputera dalam Bidang Peruncitan

(PROSPER)
The Government has also set up of the SME Bank to assist

Economic

SMEs in obtaining financial assistance.

a) Current economic situation stated above:

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Social

The population of the whole of this has an impact on all businesses in

Malaysia including Areatwo Enterprise.
Technology

Melaka has been selected as the precursor to the green technology

city to create a high quality and clean healthy environment. Melaka
has the characteristics of Low Carbon City Framework and
Assessment System (LCCF) which is a system that supports all the
policies and initiatives in Sustainable Municipal Framework, including
the Green Neighborhood Guidelines and the emphasis on upgrading
the quality of life.

Legal

A great many common law rulings, statutes, administrative rules and

legislation make up the practice and interpretation of employment
law. Its governance falls under the umbrella of both federal and state

Environment

statutes, as well as administrative regulation and judicial precedent.

This charming city is a UNESCO world heritage site, with a rich
trading history and multicultural heritage. Melaka is a rewarding town
to explore and is about two hours from Kuala Lumpur.
Firmly rooted as Malaysia's historical city, visiting Malacca is like a
journey back in time to witness the adventures and discoveries

5.0

during Malacca's golden age.

SWOT ANALYSIS
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Diagram 2
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By
definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over
which you have some measure of control. Also, by definition, Opportunities (O) and
Threats (T) are considered to be external factors over which you have essentially no
control.
SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic
position of the business and its environment. Its key purpose is to identify the strategies
that will create a firm specific business model that will best align an organizations
resources and capabilities to the requirements of the environment in which the firm
operates. In other words, it is the foundation for evaluating the internal potential and
limitations and the probable/likely opportunities and threats from the external
environment. It views all positive and negative factors inside and outside the firm that
affect the success. A consistent study of the environment in which the firm operates
helps in forecasting/predicting the changing trends and also helps in including them in
the decision-making process of the organization.
An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is
given below18

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1. Strengths - Strengths are the qualities that enable us to accomplish the

organizations mission. These are the basis on which continued success can be
made and continued/sustained. Strengths can be either tangible or intangible.
These are what you are well-versed in or what you have expertise in, the traits
and qualities your employees possess (individually and as a team) and the
distinct features that give your organization its consistency. Strengths are the
beneficial aspects of the organization or the capabilities of an organization, which
includes human competencies, process capabilities, financial resources,
products and services, customer goodwill and brand loyalty. Examples of
organizational strengths are huge financial resources, broad product line, no
debt, committed employees, etc.
2. Weaknesses - Weaknesses are the qualities that prevent us from accomplishing

our mission and achieving our full potential. These weaknesses deteriorate
influences on the organizational success and growth. Weaknesses are the
factors which do not meet the standards we feel they should meet. Weaknesses
in an organization may be depreciating machinery, insufficient research and
development facilities, narrow product range, poor decision-making, etc.
Weaknesses are controllable. They must be minimized and eliminated. For
instance - to overcome obsolete machinery, new machinery can be purchased.
Other examples of organizational weaknesses are huge debts, high employee
turnover, complex decision making process, narrow product range, large wastage
of raw materials, etc.
3. Opportunities - Opportunities are presented by the environment within which

our organization operates. These arise when an organization can take benefit of
conditions in its environment to plan and execute strategies that enable it to
become more profitable. Organizations can gain competitive advantage by
making use of opportunities. Organization should be careful and recognize the
opportunities and grasp them whenever they arise. Selecting the targets that will
best serve the clients while getting desired results is a difficult task. Opportunities
may arise from market, competition, industry/government and technology.
Increasing demand for telecommunications accompanied by deregulation is a
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great opportunity for new firms to enter telecom sector and compete with existing
firms for revenue.
4. Threats - Threats arise when conditions in external environment jeopardize the

reliability and profitability of the organizations business. They compound the

vulnerability when they relate to the weaknesses. Threats are uncontrollable.
When a threat comes, the stability and survival can be at stake. Examples of
threats are - unrest among employees; ever changing technology; increasing
competition leading to excess capacity, price wars and reducing industry profits;
etc.

5.1

SWOT Analysis for Areatwo Enterprise

STRENGTH

WEAKNESSES
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Relatively low operating expenses

and overhead
High quality of product and services
Good networking with government
and private agencies
Good
communication
and
negotiation skill.
Being a player more than 15 years
Focus on local networking and
establishing linkages with service
providers from other disciplines

AREATWO ENTERPRISE

OPPORTUNITIES

Change in economic, business

environment.
Government support for medium
scale
business/Bumiputera
entrepreneurs
Good
economic
condition
in
Malacca
The increase in the government's
financial
allocation
for
the
advertising program
Malacca
as
much
tourism
contributes to the advertising

6.0

CONCLUSION

6.1

Problem Identification

Limited access to capital

Does not provide any training for
staff
Lack of marketing strategy
Production capacity constraint
Lack of machine & technology
One man show for public relation
and marketing

THREATS

Increasing number of competitors

Slow accept advertising technology
development

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After making studies, surveys and research to this business, some major
problems have been identified. Some of these problems have been identified by
their owners, but there are also some who are identified through my own
observation and evaluation. The problems identified are as follows: 1. Human Resource (difficult to get a skilled worker)
Two categories of workers needed by the Areatwo Enterprise. Graphic
designer who uses computer skills, and labor to do the rough work of
installation and so on. For skilled workers using a computer is simple as
can get help from the Department of Manpower. Difficulty is to get skilled
workers to work on-site installation work. To recruit is simple but very
difficult to obtain a skilled worker.
2. Production (lack of machine and new technology)
Areatwo Enterprise machine strapped and underdeveloped of the new
technologies. As such, they restrict the production due to lack of effort to
make production in large quantities in a short period. Increase in capital
through loans, grants, etc are expected to address the shortage of
machines.
Besides that this business is also seen slowly to adopt and implement new
technologies in the production of advertising. Lack of capital and expertise
in this field to be the primary cause of the deficit. Business owners need to
be more likely to try something new even require some sacrifices in order
to enhance competition in the advertising field of endeavor.

3. Marketing (no proper strategies)

Marketing is important in every business. That will determine the success
of marketing and revenue to a business. Weaknesses found in Areatwo
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Enterprise which is lack of effective marketing strategies. Marketing is

focused on existing customers as well just give priority to government
agencies compared private. Marketing strategy that implemented by
Areatwo Enterprise is the old method that will always bring big toll on life
expectancy of this business. Hence Areatwo Enterprise should think and
take appropriate action to overcome the marketing techniques currently
practiced.
4. Strategic Management (no proper motto, vision, corporate objective)
Areatwo Enterprise since its inception and this does not have any motto,
vision, missions and corporate objective are clear. To become a
successful business and compete on a broader level, this needs to be
fixed and clearly stated in the beginning of a business establishment.
Areatwo Enterprise hence has to start from the beginning again to fix all of
these things so clear goals and targets set out to convince customers.

7.0

RECOMMENDATION
From all the problems mentioned above clearly Areatwo Enterprise is facing
problems either clear or not clear. Half of the problems discovered by the owner
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and is also part of my observation and as a researcher. Two problems mentioned

earlier is a problem that is noticed by the business owner while the other two are
through my own observations.
Of the four problems, I will focus on in-depth and proposed solutions to the owner
of this business deal for the problems associated with production obstacles by
Areatwo

Enterprise.

The

solution

is

expected

to

help

is

through

recommendations to the company applying for any loan or grant resources that
could contribute to the increase in the capital including the proposed business
funding application from MARA.
More thorough explanation regarding the proposed settlement of problems of
production and constraints on new production technology to the enterprise will be
presented in more detail in the Business Project 2 soon.

8.0

REFERENCES

1. e.advertising.com.my/marketing-malaysia-advertising-outlook-2013/
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2. www.mindtools.com Strategy Tools

3. pestleanalysis.com/
4. www.investopedia.com/terms/r/ratioanalysis.asp
5. malaysiabizadvisory.com/malaysia-economy-outlook-2013/
6. www.statistics.gov.my/
7. en.wikipedia.org/wiki/Porter_five_forces_analysis
8. www.melakapages.com/areatwo-advertising/

9.0

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