1.0 Executive SummaryOver Power Sdn. Bhd. (OP) is a private limited company owned by four shareholders that innovates product that can ameliorate the standard of living of the society and provide an easier solutions to solve trifles in daily life. Our mission is to improve consumers' lifestyle by weeding out other redundant cards carried daily. Our visions are to become the most seamless and secure payment card method, to create a trend by using one unique card for multipurpose and to be the most successful company that provide creative products that is unable to replace and surpass.However, our company aims fulfill the needs of consumers in domestic and then expand globally together with our strong management team. But firstly, we had done an analysis based on the payment card industry. Through the PEST analysis, we had noticed that the political in Malaysia is stable. Thus, we had done research about the rules and regulations, such as IFSA 2013 that needed to be followed while entering to this industry. Hence, there is an expectation on economic growth in Malaysia due to the increase of consumer spending. Besides, unemployment rate is controlled and Malaysia has overcame from inflation. Next, merging trends, time scarcities and safety precaution shave caused consumers to pursue the use of payment cards. In addition, technology such as card reader system, internet and AFC have revolutionized payment methods. Thus, more and more people adopt payment cards. Therefore, payment card industry is believed to be accessible and profitable.OP Card targets on those who seek for a more convenient life. Thus, market selection can divide into teenagers that follow the trends, working adults with stable income and senior citizens that seek easy lifestyle. Also, buyer behavior of consumers nowadays tend to use more on credit and debit card rather than bring a handful of cash for shopping as it is more secure. OP has three major competitors which are MYPass, Plastc Card and Wocket. Based on the competitive analysis grid, OP gains competitiveness in product features, price, branding, packaging, functionality and customizability. Hence, our branding might discourage OP to compete in the market as OP is a newbie brand in the market.The first product which is Omnipotent Card (OP Card) will be launched in Malaysia with the collaboration of our key partners, which contains bank institutions, public transports and other franchisers. OP Card is a card that combines the functions of all types of card. Hence, OP Card is a user-friendly card that can be used in stores together with our OP Device, which will be placed in the stores. Using value-based pricing method and different pricing strategies, price for OP Card is allocated RM50 per unit, meanwhile the price of OP Device is RM50 paid by monthly. OP mainly promotes OP Card and OP Device through TV and social media. For distributions, OP cards will be distributed by direct selling, which is selling our products in OP offices and indirect selling, which is selling our products through bank institutions. Further, OP will also operate a counter in different regions of our cooperated banks.OP has make assumptions on pro forma financial statements of OP for the year 2015 and 2016. First and foremost, OP needs a total start-up budgets around RM373,810. Hence, the amount of OP's income which is RM19,980 is projected to be earned by 2015, whereby RM38,700 is projected to be earned by 2016. Thus, outflow of cash is expected to occur as OP is a new established company. In order to recover OP's initial investment in terms of production, OP has to reach at least 15166 units of sales. To obtain certain level of profitability, OP has to trade higher than the break-even point.In a nutshell, Over Power Sdn. Bhd. wants to create a legend of "One step, multi time".

2.0 Company Background2.1 General Description of Over Power Sdn. Bhd.Our company is named Over Power Sdn. Bhd. (OP). It was established in January 2015 whereby it is operated in March 2015. The word "Overpower" means to vanquish by superior force (TheFreeDictionary, 2015), which symbolizes our company urges to monopoly the market by our intensive productions. Hence, OP concentrates in innovating a brand new multifunctional Omnipotent Card (OP Card) that will enhance the lifestyles of the society. Recently, OP had discovered the problems and difficulties of consumers to bring redundant cards in a heavy wallet. Thus, our company aims to provide this unique service to the public through this OP Card.2.2 Ownership StructureOver Power Sdn. Bhd. is a Malaysia-based private limited company (PLC) formed under Companies Act 1965. With this ownership structure, shareholders are legally protected by law from legal liability of the company and the liabilities are limited to the capital contributed by shareholders. Meanwhile, shareholders are not burdened with the management of the business and funds needed to operate the business are easy to obtain (UiTM, 2004). Furthermore, OP is registered under the jurisdiction of Business Unit of the Companies Commission of Malaysia (CCM).OP's founders, whom are also the shareholders include Ong Shyan Jing, Cheng Hsin Hsien, Kok Shan Ying and Kung Jae Hann.Figure 2.1 Proportion of share holdings among shareholders in OP

2.3 Products and ServicesOur products include Omnipotent Card (OP Card) and Omnipotent Device (OP Device). OP Card is a multipurpose card that combines the functions of credit card, debit card, member car and etc. It is more convenient for people to take only one card while going out and use it for making payments, showing memberships and taking public transports. The OP Device enables OP Card to insert and access to the card information by security fingerprints on the device's screen.2.4 Mission StatementTo improve consumers' lifestyle by reducing the holding of unnecessary cards daily.2.5 VisionTo become the most seamless and secure payment card method in the world.To create a trend of carrying only one unique card for multipurpose.To be the most successful company that provide creative products that is unable to replace and surpass.2.6 ObjectivesIn short term, OP wishes to bring positive impacts to the payment card industry and create values to the consumers by introducing and enhancing the payment system in Malaysia. Thus, OP Card is expected to become the first and the only multipurpose card that carry by everyone in Malaysia within the first 2 years. Nonetheless, OP aims to become the largest company and monopolize the payment card industry in Malaysia by gaining at least 70% of the market share within 6 years. After the saturation of OP Card in domestics, OP looks forward to expand globally to foreign countries by 2020.

2.7 The Management TeamAs the shareholders of OP, it is important to assign the board of directors to carry the responsibility to manage and run the business. Hence, we had elect the board of directors to assign the roles of managers and recruit our management team.Figure 2.2 Organization chart of OP

2.8 Key PartnershipAs our company is mainly producing the exclusive OP Card, which is a multifunctional card for individuals. Hence, OP Card will bring in cards include credit cards, debit cards, stored-value cards and membership cards. Consequently, we will need to persuade and collaborate with companies in different sectors. In bank sector, our key partnerships will be Maybank, Citibank, Public Bank, United Overseas Bank (UOB), HSBC Bank, RHB Bank and Oversea-Chinese Banking Corporation (OCBC) Bank (BankNegaraMalaysia, 2015). This collaboration enable our OP Card to use upon payment in shops. Besides, we will then cooperate with companies such as SaSa International Holdings Limited, Sakae Sushi, Jatomi Fitness, Watson, Tesco, Neway Karaoke, Starbucks and so on. Therefore, OP Card also carries membership types and criteria. Besides, we will work jointly with MyRapid to enter the public transportation sector. Accordingly, OP Card can used to access to RapidKL LRT, monorails and bus (MyRapid, 2011).For instance, a lady goes shopping mall by using OP Card to ride on a bus, purchasing goods and getting membership discounts in Watson at the same time with OP Card. Furthermore, these companies will provide users of OP Card to have the rights and obligations to install different forms of cards in to OP Card. With these collaborations, we believe we can gain the market shares and get first mover advantages. On the other hand, companies that have partnerships with us will get to reduce their costs and administrative efforts as they do not need to take into concern about the cards issued out. Lastly, they might also attract new users or buyers to their companies as adopting a card becomes more easier and efficient with OP Card.

3.0 Industry Analysis3.1 Description of the payment card industryThe products and services that our company provides are going to compete in the payment card industry in Malaysia. The structure of payment card industry is concentrated industry, which is industry dominated by a few large firms that shape its direction and evolution (Business Dictionary, 2015).According to the Market Research Report, payment cards instrument registered in Malaysia had a positive growth rate from 2009 to 2013, which recording a compound annual growth rate (CAGR) of 7.09% to reach 50.5million cards by the end of 2013. In terms of transaction value, after registering a review-period CAGR of 6.87%, payments card is valued at MYR402.9billion, which is US$128.2billion, in 2013. However, the key driving force in the growth of payment card industry are new product developments, improved banking infrastructure, robust economic performance and growing acceptance of card-based payments at point-of-sale (POS) terminals and on public transport. Moreover, with the adoption of Europay, MasterCard and Visa (EMV) standards, and the emergence of contactless technology, the growth is continuing going (Financial Tech Spotlight, 2014). These show that payment card industry in Malaysia is successful.On the other hand, the average transaction value (ATV) in Malaysia was US$141.1 in 2013, which is considered moderate among countries. The ATVs in China and Thailand, which recorded at US$299.1 and US$152.6, is higher than Malaysia, whereas Malaysia is higher than Australia and India, which recorded at US$104.9 and US$59.2 respectively. Among these five countries, the highest frequency with 100.3 transactions per card is recorded by Australia and Malaysias was relatively low at 18.7. However, Malaysia had the highest level of penetration, which is 4.9 cards per individual, followed by 4.4 in Australia, 3.3 in China, 1.8 in Thailand and India with 0.5 (Financial Tech Spotlight, 2014). This shows that people in Malaysia are more and more using payment card to do payment and used to it. However, 4.9 cards per individual is considered many, therefore there is an opportunity to innovate a payment card that can involve functions such as credit cards, debit cards, prepaid cards, member cards and so on.In short, from 2009 to 2013, there is an obvious growth in Malaysian payment cards instrument, which is grew from 38.4 million cards to 50.5 million, at a CAGR at7.09%. According to the Market Research Reports, a forecast-period CAGR of 3.34% is anticipated to grow. With nearly five cards per individual in Malaysia, Malaysia has one of highest card penetration in Asia-Pacific. As the transaction values at POS terminal has been increasing by degree, consumer preference for cashless transactions also rising. In other word, this trend also will prevail in other markets in the region too (Financial Tech Spotlight, 2014).Lastly, from my point of view, the payment card industry shows a good prospects to investors based on the researches.3.2 PEST AnalysisPolitical and regulatory changes, economic trends, social trends and technological advances are the most important environmental trends for a company to access to new opportunities.3.2.1 Political environmentMalaysia is a multi-ethnic, multi-religious society which surrounded by a majority Muslim population in most of its states and an economically-powerful Chinese community (BBC News, 2013). The political parties in Malaysia are distinguished based on their differing racial compositions. Barisan Nasional (BN) dominates the government since Independence. The BN is an alliance of the United Malays National Organization (UMNO), Malaysian Chinese Association (MCA), Malaysian Indian Congress (MIC), and a series of smaller parties. The UMNO has been the dominant party in both the BN and the country (Global Security, 2015).Nowadays, Malaysia is having a politically stable environment, which lead by a democratically-elected coalition government that committed to the development of its economy. Through the measure of Economic Transformation Programme (ETP), the government also has promised to implement the appropriate policies and provide its support for the creation of favorable environment for business and investment. In other words, government is flexible enough to accommodate needs in payment card industry (ETP, 2013).Malaysia is one of the countries that full of the rule of laws and there are several laws, rules and regulations that will impact the payment card industry. Firstly, Malaysia is an Islamic country, therefore an Islamic Financial Services Act 2013(IFSA) has been introduced to provide a stronger legal foundation to drive the growth of Islamic finance sector. The Act provides a legal platform for development of Islamic finance in Malaysia which is reflected upon a comprehensive regulatory framework of the various Islamic financial contracts. In Islamic finance, Islamic banks conduct financial intermediaries using Shariah contract and apply this in the offering of Islamic financial products and services. With this comprehensive regulatory framework in place, there is hope that the growth of Islamic finance in Malaysia will further driven and this action may be seen as an example for other key markets in advancing the Islamic financial system together at global scale (INCEIF, 2015). In other words, the strengthen of Islamic finance might help to boost the payment card industry.Besides, the Payment System Act 2003 must be taken into account for payment card industry. A legal framework is provided to ensure the efficient functioning and stability of the payments system in the country and therefore the confidence in the payments system is preserved. Based on the Act, Central Bank is enabled to effectively undertake its oversight activities in meeting its policy objectives in the payments system, which in other words is to ensure the safety and efficiency of the payments system, as well as to safeguard public interest. As the Act allow payment systems and payment instruments to be introduced in the market speedily, the Central Bank is empowered to prohibit the operations of the payment systems or issuance of payment instruments that are found to be harmful to the reliable, safe, efficient and smooth operation of the payment systems (Bank Negara Malaysia, 2015).According to Malaysia government, Goods and Services Tax (GST Malaysia) will be implemented effectively from 1 April 2015 and the rate is fixed at 6%. GST Malaysia will replace the sales tax and service tax, which are 10% and 6% respectively. GST Malaysia is a consumption tax based on the value-added concept. It is imposed on goods and services at every stage in the supply chain including production and distribution stage (NBC GST, 2015). As payment card industry involves both goods and services, GST Malaysia will be charge on the cards and service transactions.

3.2.2 Economic environmentMalaysia today is a middle-income country with a multi-sector economy based on services and manufacturing. According to the World Economic Forum, economy of Malaysia from 2014 to 2015 was one of the most competitive in Asia, which is ranked at 6th and 20th in the world (World Economic Forum, 2015). The Gross Domestic Product (GDP) in Malaysia has been risen 2.0 percent in the fourth quarter of 2014 over the previous quarter (Trading Economics, 2015). These show that Malaysia is achieving a great success of economic growth and it is believe that will have a more successful future.Figure 3.1 Malaysia GDP Growth Rate

Source: Trading Economics, 2015The GDP of Malaysia in 2014 was $746.821 billion and it is continuing to growth. A countrys GDP show the purchasing power of consumers, which will affect Malaysian to do more spending in buying things by using payment card. Besides, Malaysias economic is believed to have a more improvement in the future as the GDP and unemployment rate are maintaining at a good rate. People in Malaysia will have more purchasing power as the unemployment rate is only 2.9% in April 2009 (Trading Economics, 2014). In other words, more purchasing power provides the opportunity for Malaysian to buy more things and also increase the usage of payment card. According to the Trading Economics, the inflation rate in Malaysia was recorded at 1.0 percent in January of 2015, which is from a 2.7 percent in the previous year. This is due to the cost of transport and communication declined and rises in prices of housing and utilities and food and non-alcoholic beverages moderated (Trading Economics, 2015).In a contrast, Malaysias economy has entered a stabilized phase as there in an obvious growth in Malaysia GDP. The growth of Malaysias economy has continued expansion in consumer spending and investments. When there is support for consumer spending, the presence of payment cards might raise (Kok, 2013).3.2.3 Social environmentMalaysia contains a high level of heterogeneity of cultures, races, religions and beliefs. Thus, consistently changing in demographics affect Malaysia's socio-cultural factors implies on the current trends, lifestyles and purchasing behavior of the people (Daniel, 2010). Hence, social and culture trends are merging and these changes may cause a major impact to business. First and for most, payment card has became a global trend of payment method, which is also widely used in Malaysia. In 2009, although the payment card growth has once crashed as BNM implemented the RM50 levy. Moreover, usage of payment card in Malaysia is fairly saturated across states now (Hishamh, 2011).In the past, Malaysian payment cards has registered a positive growth, achieving a compound annual growth rate of 7.09% to reach 50.5 million cards in circulation by the end of 2013 (Timetric, 2015). In other words, anyone who qualifies to get a payment card has got one or more. Thus, the evolving trend of card-based payment methods are expected to surpass paper-based payment methods.Nonetheless, society is overwhelming by the lifestyle obligations. Time scarcity pressures consumers express strong preferences for quick, efficiency and convenient products that allow them to endure simplify lifestyles. Hence, solutions are needed to restore balance in the consumers' life (Government of Canada, 2010). Therefore, there is an increasing demand of payment cards as consumers can make payments instantly, transfer and withdraw money and also monitor their cash flows easily as bank will recognize transactions and send notification to your phone immediately.In addition, the rising awareness of society about crimes such as robbing, stealing and fraud also encourage the expanding of payment card industry. Nowadays, carrying a lot of cash in the public or overseas is a huge temptation for the greedy one to commit crime. Due to safety precautions, people prefer to replace paper notes with a card upon purchasing, especially women and the elderly. Also, payment card gains universal acceptances that can fulfill the need of consumers travelling across nations while card purchases are exchanged at the interbank exchange rate at the best rate (Schlichter, 2012).3.2.4 Technology environment"It has become appallingly obvious that our technology has exceeded our humanity" said the physician Albert Einstein. Here and now, technology is an essential need in everyone's life, many things would be materialize with this important development (Moradi, 2015).Additionally, technology has certainly revolutionized payment methods upon transactions. Hence, the researches revealed that the usefulness of card reader system is positively associated with consumers intention to adopt payment card in Malaysia. The common use of card reader such as magnetic stripe or swipe readers (MSR) is an essential part of any point-of-sale (POS) system. MSRs can read various card with magnetic stripes, including some driver's licenses, gift cards, and other IDs. Mobile readers are evolving too, available for on-the-go devices by scanning cards into your application (Barcodesinc, 2015). Hence, consumers demand for more flexible shopping by using payment cards.Technology enhancement leads internet to become the most active trade intermediary within a decade. Instantly, online shopping revolutionizes retailing by providing consumers to stay indoors and buy an enormous variety of products and services over the world. Momentarily, internet is broadly used to access online financing such as online banking and online transfer across nations with payment card. Internet also enhances e-commerce industry, consumers can conduct electronic payment for purchasing and selling goods and services offered through the internet by either e-payment or e-cheque (E-payment, 2013). Also, consumers rely on payment cards not only enjoy the ease of transferring payment through internet but also ensure the accuracy of amount transferred, timely transactions and protection over information. Hence, these bring a positive impact towards payment card industry.Furthermore, technology has replaced the use of formal ticketing method into smart card ticketing. In Malaysia, the ticketing systems in public transportation such as RapidKLLRT are implemented with the new Automatic Fare Collection (AFC) integrated systems. This system uses a new MyRapid Pass which is a stored value card, and tokens that can be purchased at all RapidKL LRT counters for a single journey (MYrapid, 2011). According to Singapore Technologies Electronics Limited, AFC is a ticketing system that designed based on contactless smartcard-based end-to-end solution for fare collection and payment. With this system, operating and maintenance cost of fare collection for transit operators can be reduced and improve efficiency. As this system is ease-of-use, the number of passenger flow in and out of stations increased. In other words, this system encourages passengers to use card while taking public transportations. Therefore, the user rate of payment cards will increase (STEE, 2011).

4.0 Market Analysis4.1 Market Segmentation and SelectionOur company segmented on the market based on demographic and psychographics variables. Malaysian consumers now are more and more emphasizing on convenient lifestyle. They want their life to be as convenient as possible. So our company created Omnipotent Card to fulfill consumers demands. Our company target on almost every citizens in the country as everyone wants to have convenient life. Our product can make their life more convenient and increase efficiency of their life. Our company target on mostly teenagers, working adults and senior citizens. Besides that, consumers that have stable income are our target too. Working adults tend to have more credit cards so OP target on them. Our product is innovated by us and is better than those usual products in the recent market. OP are sure that our product can make the life of our consumers convenient and more efficient. Thus, satisfaction of our customers will be guaranteed. 4.2 Buyer BehaviorBuyer behavior is the management theory component that analyzes the buying habits of people in a country. This is primarily used for marketing purposes, an examination of perception, desire, decision making and satisfaction are included in the analysis (BusinessDictionary, 2015). Consumers nowadays tend to use more on credit and debit card rather than bring a handful of cash for shopping. As it is more secure to bring just few cards than bringing a handful of cash that might catch the attention of snatch thieves, so the card payment industry had been growing steadily. There are a few type of cards available in the market such as credit card, debit card and charge cards. These cards are also divided according to consumers purchasing power so that it suits everyone.

4.3 Competitor Analysis4.3.1 MYPassMYPass is a prepaid and discount card issued by Malaysias leading e-payment service provider, Touch n Go. MYPass can be used to pay for products and services in Malaysia, such as Kuala Lumpurs public transport, retail stores, restaurants, theme parks, tourist attractions, and anywhere that has the Touch n Go sign displayed, throughout Malaysia. MYPass can be reloaded in a lot of places such as convenience stores, transit stations, petrol stations and selected retail stores (Emily, 2014).4.3.2 Plastc CardPlastc is an electronic card that can stores up to 20 cards including debit, credit, gift and even security cards. It has the same size and shape as an ordinary card, but it has a sharp and striking e-ink display. You can simply swipe through the e-ink screen to choose the type of card you want, and swipe the magnetic stripe through the reader. Instead of carrying 20 cards in your wallet, you can carry just one with Plastc. The connected Wallet app through your smart phones is able to store, manage and sync cards to the Plastc card. You can also check your account balances and transaction alerts, all available from the top seven U.S. banks that help users track spending (Dauphin, 2015).4.3.3 WocketThe Wocket is smaller than a typical wallet, and can be used to carry cash via an additional accessory. The power is supplied to the card by a coin cell battery. Then, users can start by swiping all of their stripe cards into the Wocket, which then records the pertinent data and store those date into its onboard memory. Besides that, other types of cards, such as utilizing barcodes, can be scanned in. Up to 10,000 cards can be stored into one device, then being kept someplace safe in the user's home. When a payment is in process, the Wocket's touchscreen is used to choose the desired "soft" (electronic) card. Before the desired soft card can be accessed, the user has to first verify their identity. This is done using a combination of thumbprints and a PIN code. The device will wirelessly pairs directly with the merchant's payment system, as long as it is authenticated by Wocket. There is no smartphone or internet access required. For loyalty cards, member cards or others that utilize a barcode, when the card is selected, that code will appear on the Wocket's screen allowing it to be scanned. Users can also manually enter and store textual information such as their personal pass codes (Coxworth, 2014).Table 4.1 Competitive Analysis Grid for Over Power Sdn. Bhd.NameOP Sdn. Bhd.MYPassPlastcWocket

Product featuresAdvantageDisadvantageEvenEven

PriceAdvantageAdvantageEvenEven

BrandingDisadvantageDisadvantageAdvantageAdvantage

PackagingAdvantageDisadvantageAdvantageAdvantage

FunctionalityAdvantageDisadvantageEvenEven

CustomizableAdvantageDisadvantageAdvantageAdvantage

5.0 Marketing Plan5.1 Marketing Mix and Strategies5.1.1 ProductOur product is a multipurpose card and it is known as Omnipotent Card (Please refer to Appendix 1 for OP Card). OP Card combines the functions of credit card, debit card, stored-value card and member card of shops. It is more convenient for people to take only one card while going out. They dont have to bring more than one card for shopping. For example, the user of Maybank, Citibank, Public Bank and member of Sakae Sushi or Watsons do not have to bring those cards in their wallets. They only have to bring OP Card out and pay and collect point by using our product. To use this convenient card, the shops or outlets need to use our specially designed device and apps - The OP Device (Kindly refer to Appendix 2 for OP Device). They only have to insert the card into the device and pick the card that they would like to access from the device's screen. Besides that, after they made the payment, the devices will detect and automatically sign in to the membership. Users do not have to provide their details for member benefits anymore. Furthermore, OP Device is more safety than normal credit card machine. Users have to provide fingerprint and also pin or password to access to their card. OP Card is designed almost the same with those normal payment cards. To ensure that users are able to keep the OP Cards in their wallets, the dimension of OP Card is using a standard card size, which is 85.60 53.98 mm (ISO, 2004). It is due to the space provided in the wallet are usually suits for the standard card size only. To emphasize that our OP Card is the only card that available with multifunction, the colors for the card is unity, which is only available in gold color, also known as magnetic gold. Besides, the main component that used to produce OP Card is fibre-reinforced plastic (FRP), which is a composite material that made of a polymer matrix reinforced with fibres. It is also considered as one of the strongest and most durable materials in the world (Bedford Reinforced Plastics, 2015). Therefore, OP Card is light weight with high strength and it is resistance to bending. Furthermore, surface of OP Card can be protected from scratches as this material improved the surface quality. To follow-up our customers, a six months warranty will be provide for each OP Card and OP Device. If the products or components are defective, OP will provide a free-of-charge service to repair or replace them with a new product excluding failures caused by user. However, a small amount of service fees will be charged for repairing when the warranty ends.5.1.2 PriceValue-based pricing is the most suitable approach to set the price for our product. Value-based pricing the list price is determined by estimating what consumers are willing to pay for product and then backing off a bit to provide a cushion. The price a company charges for its products sends an important message to its target market. Thus, several pricing strategies are used to attract consumers. Firstly, price skimming is used to position our product as innovative, unique, and of a high quality. Price skimming is a pricing strategy in which entrepreneurs sets a relatively high price for a product. Hence, our products will charge at premium price. Other than price skimming, OP also uses perceived value pricing. Perceived value pricing is typically value-based pricing, which is the valuation of good and service according to how much consumers are willing to pay rather than upon a products production and delivery costs (BusinessDictionary, 2015). By using a perceived value pricing, the marketing of a product will be more effective as it sets product pricing in line with its perceived value by potential buyers. The OP Card is suggested to be set at RM50 which means the users who want to combine their cards into OP Card, they only have to pay for the card and the services are free of charge. OP only charge the owner of shop for the rental of OP Machine for RM50 monthly.5.1.3 PromotionOP promotes our products through TV and social media. This is because TV is a more traditional and reliable platform to and for consumers. Advertisements made on TV must go through the permission of government and there is restriction on advertisements, for example laws and regulations which made them more reliable. As for social media like Facebook, Twitter, Youtube and etc, there might be lower confidence between customers because there is no restriction and many fake information are being spread. But, there is still benefits to promote OP's products through social media. The number of users of social media are enormous and the cost of advertising is relatively lower. To create public awareness, our company have created a recognizable slogan - "One step, multi time", which means multiple tasks and payment can be done simultaneously using an OP Card.5.1.4 PlaceOP cards will be distributed by direct selling and indirect selling through intermediaries. In direct selling, our company will set up office in the main city and sell the products at the office to display and sell our products to consumers. At our office, consumers can apply for new OP Card and franchisers can subscribe for the device. Besides, a better customer service will be provided as they can seek more information about our products and made complaints. Furthermore, direct selling enable OP to maintain control on its products. Next, indirect selling through intermediaries, which firms that sell through intermediaries typically pass the products to wholesalers and place them in retail outlets to be sold. As there are collaborations with banks, the products will be sold at the counters of banks. The staffs that are in charge of the counters will be serving customers and introducing them our products. The staffs also will convince them to apply for OP cards. Besides, selling at banks will help OP to reach our consumers directly and gain market share more effectively. Hence, bank institution is a more trustable intermediaries compare to others. In the future, we will also open a counter in every branch of our cooperated bank.

6.0 Financial Projection6.1 Start-up BudgetA.Capital ExpenditureRMRM

Land & Building105,000

Machinery & Equipment40,500

Furniture & Fixtures10,000

Vehicle - Van (hire purchase)40,000

Renovation cost34,350

Sub-total229,850

B.Working Capital (3 months)

Marketing9,000

Production/Operation100,000

General/Administrative5,500

Sub-total114,500

C.Other Expenditure

Pre-Operating

Business Registration1,000

Insurance1,510

Road Tax650

Sundries400

3,560

Deposits

Utilities (Telephone/water/electricity)900

Sub-total4,460

Grand total348,810

D.Add: Contingency cost (10%)25,000

TOTAL START-UP COST373,810

6.2 Pro Forma Income Statement for Over Power Sdn. Bhd.

2015 Projected2016 Projected

RMRMRMRM

Sales70,85092,480

Less: Returned goods & discounts(2,000)(3,200)

Net Sales68,85089,280

Cost of Sales

Opening inventories16,0206,700

Purchases17,65025,000

Less: Closing inventories(6,700)26,970(8,200)23,500

Gross Profit41,88065,780

Operating Expenses

Stationery700300

Rent3,9003,900

Insurance1,5001,500

Marketing expenses9,00011,000

Salary and wages3,0004,200

Administration expenses1,1002,100

Discount allowed6001,200

Other expenses4901,000

Depreciation:

Office equipment1,0201,160

fixture & fittings59021,90072027,080

Net Profit19,98038,700

6.3 Pro Forma Statement of Cash Flows for Over Power Sdn. Bhd.

2015 Projected2016 Projected

RMRM

Cash flows from operating activities

Net income19,98038,700

Changes in working capital:

Depreciation1,6101,880

Increase/decrease in accounts receivable930(1,690)

Increase/decrease in accrued expenses190480

Increase/decrease in inventory10,240(1,400)

Increase/decrease in accounts payable(1,670)3,850

Total adjustments11,3003,120

Net cash provided by operating activities31,28041,820

Cash flows from investing activities

Purchase of building and equipment(25,000)(10,000)

Net cash flows provided by investing activities(25,000)(10,000)

Cash flows from financing activities

Capital500,000-

Proceeds from increase in long-term debt60,000-

Interest payment(11,000)(12,050)

Net cash flows provided by financing activities549,000(12,050)

Increase in cash570,2805,600

Cash and cash equivalents at the beginning of the year-570,280

Cash and cash equivalents at the end of the year570,280575,880

6.4 Break Even Analysis for Over Power Sdn. Bhd.

Assumption

RM

Unit sales price50

Average variable cost per unit27

Estimated yearly total fixed cost348,810

Calculation of yearly break even unit

=15165.65

=15166 units

ReferencesUiTM Entrepreneurship Study Group. 2004. Fundamental of Entrepreneurship, Malaysia: Pearson Prentice Hall.BANK NEGARA MALAYSIA (2003) The Payment Systems Act 2003. [Online] Available from: http://www.bnm.gov.my/index.php?ch=en_press&pg=en_press_all&ac=733 [Accessed: 10th March 2015]BANK NEGARA MALAYSIA (2015)List of Licensed Banking Institutions in Malaysia. [Online] Available from: http://www.bnm.gov.my/index.php?ch=li&cat=banking&type=CB&fund=0&cu=0 [Accessed: 11th March 2015] BARCODESINC (2015) Credit Card Reader.USB, Wireless, Portable, Multi-track & More. [Online] Available from: http://www.barcodesinc.com/cats/credit-card-readers/ [Accessed: 11th March 2015]BBC NEWS (2013) Malaysia Profile. Malaysia boasts one of south-east Asia's most vibrant economies, the fruit of decades of industrial growth and political stability. [Online] Available from: http://www.bbc.com/news/world-asia-pacific-15356257 [Accessed: 10th March 2015]BEDFORD REINFORCED PLASTICS (2015) The FRP Advantage. What is FRP? [Online] Available from: http://bedfordreinforced.com/why-our-material/what-is-frp/ [Accessed: 15th March 2015]BUSINESS DICTIONARY (2015) Definition. [Online] Available from: http://www.businessdictionary.com/definition/buyer-behavior.html [Accessed: 15th March 2015]BUSINESS DICTIONARY (2015) Definition. [Online] Available from: http://www.businessdictionary.com/definition/concentrated-industry.html [Accessed: 10th March 2015]BUSINESS DICTIONARY (2015) Definition. [Online] Available from: http://www.businessdictionary.com/definition/perceived-value-pricing.html [Accessed: 15th March 2015]COXWORTH, B. (2014) Wocket wants to replace your wallet. [Online] Available from: http://www.gizmag.com/wocket-smart-wallet/31477/ [Accessed: 14th March 2015]DANIAL, A. (2010) Analyzing the Malaysian Business Environment. [Online] Available from: http://dannyabdat.blogspot.com/2010/10/analyzing-malaysian-business.html [Accessed: 11th March 2015]DAUPHIN, T. (2015) Plastc organizes all your cards in one device. [Online] Available from: http://www.cultofmac.com/308357/plastc-credit-cards-device/#8mMfigdzycy8eucY.99 [Accessed: 14th March 2015]EMILY (2014) Explore Malaysia Conveniently with MYPass. [Online] Available from: http://www.emily2u.com/explore-malaysia-conveniently-mypass/ [Accessed: 14th March 2015]E-PAYMENT (2013) What is E Payment. [Online] Available from: http://www1.american.edu/initeb/sm4801a/epayment1.htm [Accessed: 11th March 2015] ETP (2013) Invest in Malaysia. Why Malaysia? [Online] Available from: http://etp.pemandu.gov.my/Invest_In_Malaysia-@-Why_Malaysia%5E.aspx [Accessed: 10th March 2015]EUROMONITOR (2014) Consumers financial product awareness. [Online] Available from: http://www.portal.euromonitor.com.tarcez.tarc.edu.my/portal/analysis/tab [Accessed: 14th March 2015]FINANCIAL TECH SPOTLIGHT (2014) Expense Management - INDUSTRY NEWS.Market Research Reports, Inc. (www.marketresearchreports.com): Malaysia's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape, New Report Launched. [Online] Available from: http://financial.tmcnet.com/expense-management/news/2014/09/02/7995750.htm [Accessed: 10th March 2015]GOVERNMENT OF CANADA (2010) Consumer Trend Report. Convenience. [Online] Available from: http://www.ats-sea.agr.gc.ca/inter/5527-eng.htm [Accessed: 11th March 2015]HISHAMH (2011) Economics Malaysia. Credit Card Woes. [Online] Available from: http://econsmalaysia.blogspot.com/2011/11/credit-card-woes.html [Accessed: 11th March 2015]INCEIF (2015) Islamic Financial Services Act (IFSA) and Financial Services Act (FSA). [Online] Available from: http://www.inceif.org/islamic-finance/islamic-financial-services-act-2013/ [Accessed: 10th March 2015]ISO (2004) ISO/IEC 7810:2003. Identification cards -- Physical characteristics. [Online] Available from: http://www.iso.org/iso/catalogue_detail?csnumber=31432 [Accessed: 15th March 2015]KOK, J. (2013) Malaysian economy in stable phase. [Online] Available from: http://business.asiaone.com/news/malaysian-economy-stable-phase/page/0/2 [Accessed: 10th March 2015]MORADI, T. (2015) How Has Technology Affected Your Life? [Online] Available from: http://www.academia.edu/4707878/How_Has_Technology_Affected_Your_Life [Accessed: 11th March 2015]MYRAPID (2011) Full Integration of LRT Ticketing System on Monday. [Online] Available from: http://www.myrapid.com.my/news-events/media-releases/2011/full-integration-lrt-ticketing-system-monday [Accessed: 10th March 2015]MYRAPID (2011) MyRapid Card. [Online] Available from: http://www.myrapid.com.my/tickets-fares/myrapid-card [Accessed: 11th March 2015]NBC GST (2015) Malaysian Goods and Services Tax (GST): How GST Affects You? [Online] Available from: http://www.nbc.com.my/gst/faqs-malaysia-goods-and-services-tax-gst/ [Accessed: 10th March 2015]SCHLICHTER, S. (2012) The Best Way to Carry Money Overseas. [Online] Available from: http://www.independenttraveler.com/travel-tips/money-and-insurance/the-best-way-to-carry-money-overseas [Accessed: 11th March 2015]STEE (2011) Automatic Fare Collection System. Overview. [Online] Available from: http://www.stee.stengg.com/pdf/railway_system2/AFC_EngBrochure.pdf [Accessed: 10th March 2015]THEFREEDICTIONARY (2015) overpower. [Online] Available from: http://www.thefreedictionary.com/overpower [Accessed: 11th March 2015]TIMETRIC (2015) Cards & Payments Reports. Malaysia's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape. [Online] Available from: https://timetric.com/research/report/vr0995mr--malaysians-cards-and-payments-industry/ [Accessed: 11th March 2015]TRADING ECONOMICS (2015) Malaysia GDP Growth Rate. [Online] Available from: http://www.tradingeconomics.com/malaysia/gdp-growth [Accessed: 10th March 2015]TRADING ECONOMICS (2015) Malaysia Inflation Rate. [Online] Available from: http://www.tradingeconomics.com/malaysia/inflation-cpi [Accessed: 10th March 2015]TRADING ECONOMICS (2015) Malaysia Unemployment Rate. [Online] Available from: http://www.tradingeconomics.com/malaysia/unemployment-rate [Accessed: 10th March 2015]WORLD ECONOMIC FORUM (2015) Malaysia. [Online] Available from: http://reports.weforum.org/global-competitiveness-report-2014-2015/economies/#indexId=GCI&economy=MYS [Accessed: 10th March 2015]

Appendices

Appendix 1

Appendix 237