2. Funten.com
BUSINESS PLAN
2
Arbitrage Enterprise
Prepared by:
11276 Muhamad Wafi Muhamed BIS
11235 Nadira Syazwani Mohd Shafie ICT
11250 Zuriati Azhan Binti Zulkifli ICT
11241 Nurul Hafiza Binti Mohd Noor Azam ICT
Supervisor :
AP Dr Wan Fatimah Binti Wan Ahmad

3. CONFIDENTIAL
Section
i CONTENT
Section 1.0 EXECUTIVE SUMMARY
Section 2.0 INTRODUCTION TO THE COMPANY
2.1 Company Background
2.2 Growth Strategies
2.2.1 Financial Strategies
2.2.2 Technology and Product Development Strategies
2.2.3 Marketing Strategies to increase market or mind share
2.3 Target Markets
2.4 Revenue Model
2.5 Operational Setup
2.6 Long Term Goals of company
2.7 Market & Competitors Information
2.8 Strength & Weaknesses or SWOT
Risk Analysis
Section 3.0 EMPLOYMENT OF KNOWLEDGE WORKERS
3.1 Management Team
3.2 Organizational Chart
3.3 Human Resource Plan
Section 4.0 PRODUCT OR SERVICE DEVELOPMENT
4.1 Product / Service / Technology Overview
4.2 Research and Development (R&D)
4.3 Benefits & Customer Value
Section 5.0 MARKETING PROGRAMS
5.1 Marketing Overview
5.2 Marketing Programs
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4. CONFIDENTIAL
Section 6.0 FINANCIAL PROJECTIONS
6.1 Financial Overview
6.2 Financial Qs to consider
Section 7.0 CONCLUSION
Section 8.0 APPENDICES
Section
4

5. CONFIDENTIAL
EXECUTIVE SUMMARY
1
Arbitrage Enterprise is an e-commerce based company leveraging in social
networking for the customers to be able to advertise, sell and buy product at the lowest
budget of RM10. Founded on January 2011 in small town Tronoh, Perak, Arbitrage
Enterprise vision is to become a leader in social business network by offering low price
products and services for Asia Pacific countries.
Based on SWOT analysis and strategic formulation, the company has found unique
market opportunity for the company. Arbitrage Enterprise found that most of the existing e-commerce
does not integrate with social network platform where sellers are unable to
promote their offering automatically to their existing contact on social network. The
separation also underutilized the trust chain in the social map. Secondly, the
advertiser/marketer need to pay certain amount for duration to publish their offering on the
e-commerce, even there is no sales have been made.
The first product of Arbitrage Enterprise is the Funten.com. The Funten.com is
Funten.com is a website that acts as an intermediary social business network which
connects the sellers and the potential buyers in interesting and exciting online marketplace,
where all offering are at price RM 10, targeting new small Malaysian entrepreneurs
especially from institute of higher learning.
The marketing strategy implemented by our company is the concentrated (niche)
marketing. The company focused 100 % toward a small segment of which means students
of Higher Learning institution instead of the whole market. With unique pricing system, the
company focused and offers the products to the industry’s typical customer, which the
Generation Y that are more familiar with the social networking, online businesses and Web
2.0 features. As the company implementing the niche marketing, Arbitrage Enterprise is
able to develop a marketing mix for these groups of people. These groups of people, have a
good Internet connection in their hostel/learning institution, love to share their interest with
friends using social network thus generate by using their creativity and unique talent.
Promotion will be done through various means such as by using social network, promotion
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6. CONFIDENTIAL
from school to school and university, personal selling, search engine optimization, unique
selling proposition and more. As an online business, Funten.com is available online; 24
hours a day, 7 days a week and 356 days a year.
Arbitrage Enterprise had planned well the financial strategies in order to make sure
that growth of the company will be supported by a good financial backup. As for the start,
the company had shortlisted several share holders which had shown the interest to invest
into our company. The expected shareholders are Dato Rohoma Mukhtar and also Mr.
Ahmad Farid Bin Sainuri. Dato Rohoma Mukhtar is an experienced entrepreneur who owns
the Rohama International Holdings a well known public relationship company. Mr. Ahmad
Farid Sainuri is a undergraduate in University of PETRONAS holding a degree in Business
Information System. He has a well experienced in the Search Engine Optimization.
The revenue of the sales product is expected to growth for the first 3 years of the
business operation. Arbitrage Enterprise management is confident that Funten.com can
achieve its aggressive sales forecast, generating total sales of approximately RM 34,900.00
million, RM 38,650.00 and RM 45,800 in years, 2012, 2013 and 2014, respectively. In
addition, Arbitrage Enterprise management has carefully considered its market, potential
customer base and its ability to grow the sales to capture the security system market.
As for the future plan, the management team of the company had set up several long
term goals to be achieved by the company. Generally, the company goals are to conquer
the market in the local country within the 3 years time. Next, within the 4 years of the
company’s operation, Arbitrage Enterprise will look forward to tap the market to several
foreign countries and looking forward to establish more partnership at the foreign country, in
order to cater the demand of the product from the foreign customer. Last but not least, after
had tapped the market in both the local and foreign countries, the company will start to
execute the vertical integration product development which is estimated to execute on the
10 years of the company’s operation.
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7. CONFIDENTIAL
COMPANY 2
Arbitrage Enterprise was founded in January 2011 in small town of Tronoh, Perak, to
provide a new innovative role in the online business market. The company has been set up
due to the support of the government and university to encourage the technopreneur among
the local Malaysian students. A rapid growth and adoption of internet-based business and
social networking has encouraged Arbitrage Enterprise to engage in this industry.
Arbitrage Enterprise, a technology-commerce based company is specializing in
leveraging the online social network with e-commerce. On February 2011, the company
have come out with the first online social network integrated e-commerce namely
funten.com. While in managerial part, Arbitrage Enterprise currently managed by four
dedicated individual, lead by the Chief Executive Officer, Mr. Muhammad Wafi Muhamed,
the founder of this company, assisted by Nadira Syawani, Zuriati Azhan, and Norhafiza.
The company’s vision is to become a leader in online social business network by
offering low price products and services for Asia Pacific countries. Furthermore, Arbitrage
Enterprise also has its own mission to drive the online website to be a platform for talented
people from different background who want to sell and buy any product/service at RM 10
and to become top 10 of online social network integrated e-commerce in Asia Pacific. This
will be achieved by exceeding the expectations of every user offering good quality of
product/service, outstanding customer service, increased flexibility, and greater value, thus
optimizing system functionality and improving operation efficiency.
As an experts in the web technology, Arbitrage Enterprise strength is rely on the
funten.com itself as the promotion and intention of this website is different from the other
company within the same field. Subsequently, the combination of the knowledgeable
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Section
INTRODUCTION TO THE
Company Background

8. CONFIDENTIAL
managerial team and also the expertise of technical team resulted in the excellent
performance of Arbitrage Enterprise offering.
Unlike other company in the same field, Arbitrage Enterprise offer fair price of
services which is affordable to purchase by the customer plus the efficiency of the website is
guaranteed excellent. Although Arbitrage Enterprise is a new company which is still not
dominant in the market, our company is the pioneer of unique style web service concept by
promoting the ten ringgit products on the Internet, leveraging social network, to tap
influential market. Our company is distinguished by the functional and technical expertise
combined with the experience, thereby ensuring that our customers received the best
quality.
Business Intent
Product or services offered
The intention of Arbitrage Enterprise is to focus on providing online social business
network by offering low price products and services for whom want to supply and demand
product or service through online. One of the business activities provided by Arbitrage
Enterprise is Funten.com. It is an online social network integrated e-commerce website,
which act as a marketplace where people can sell and buy anything at RM 10.
Using this website, the users can freely advertise their promotion of products and
services, as long as the offering price is RM 10, while the buyer can use this website to
order the product and service that they are interested and demand to it. All this service is
only applicable or provided to the registered users, who want to be part of the Funten.com
community. For every sales transaction, there will be service charge of 10% from the total
sales to the company.
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9. CONFIDENTIAL
Market need
A survey has been conducted among 75 undergraduates, representing various
students’ club and organization (including the entrepreneurship club), in most Institute of
Higher Learning, around Malaysia.
The survey shows 62 subjects stated that most of their members need to find
additional money to support their daily expenses, due to the increasing living cost. However,
because of the time constraint, only minority are able to do part-time job. Most part-time
jobs required minimum working hours. Majority of their members choose to invest in several
fields which are more secured, but take time for profit. There are undergraduates who
joined multi-level marketing, as well as pyramid scheme.
Subjects are acknowledge and familiar, with the major e-commerce in Malaysia such
as www.lelong.com.my, www.mudah.my, and www.ebay.com.my. From the survey, the
feedbacks are as following:
1. The target group in these three website is not only for students, but
open for all.
2. The offering is more on products, rather on services.
3. The offering price of products/services is not attractive enough for
students.
4. There are certain fees required to utilize the vital function.
5. The seller need to pay for advertising fees, even there is no sales
have been made.
6. No social-network platform integration.
After analyzing the feedback and data collected through the survey, the company
has identified the market need by our target market. Those problems have been translated
into opportunity and become market-driven trapped value, listening to the target market
voices.
First, the existing e-commerce(s) in Asia are not integrated with social network
platform. Sellers are unable to promote their offering automatically to their existing contact
on social network such as Facebook and Twitter, which have more probability to buy their
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10. CONFIDENTIAL
offering, as most of them are the strong contact individual. The separation also underutilized
the trust chain in the social map.
Second, the advertiser/marketer need to pay certain amount for duration to publish
their offering on the e-commerce, even there is no sales have been made. There is risk
associated with the marketing. There are sellers who are unable to cover the advertisement
cost, due to lower sales than expected. Some of them even pay advertising fees, for
nothing.
Third, majority students from Institute of Higher Learning need to find extra income,
by doing part-time job. However, the time constraints have become major concern as they
need to balance between their study times and fulfill the minimum working hours. It is hard
to do physical business while studying, added that some institution discourage students to
do business in campuses.
Fourth, every student has their own unique talent such as in designing, writing,
video-editing, graphic-editing, and many more. These talents are not channeled on the right
way, where it kept only for their academic purpose. Each talent has their own commercial
value. The failure to create a platform that can fulfill the need of students will leads to a
potential commercial waste, for them and also for the country.
Lastly, there is not really personalized e-commerce that suitable for Generation Y,
existed in Asia. Generation Y will start to enter the market-force in 2012. Most of them are in
learning institution. The existing e-commerce is more suitable for Generation X which
focuses on functional aspects. The next marketplace that is on demand is a more “personal”
marketplace with Web 2.0 features, which have integrated context.
All this problems are indeed a golden opportunity for Arbitrage Enterprise to get
into market in Asia, and lead the market as the pioneer. This opportunity have been
translated into funten.com
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11. CONFIDENTIAL
Degree of innovation
Funten.com is the first online social network integrated e-commerce, with Web 2.0 features
in Asia Pacific. In line with the booming of social network such as Facebook, there are room
for business innovation ways. With funten.com, users tap their own influential market and
key contact in doing promotion. As social network involves more unique profiling group, the
chances of making sales is high, as the sellers knows well the target market, hence adding
good impact to the company. By utilizing the unique social network, funten.com will receive
higher traffic and expected return.
Feasibility and profitability
Based on the market research, Arbitrage Enterprise is confident that Funten.com
be performing assets for the company, as it has great potential to generate revenues from
transaction fees and advertising fees. The amount of revenues generated from these
sources depends on the sales made by the users. The multiplier effect of social network will
increase the company momentum.
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12. CONFIDENTIAL
Growth Strategies
Several strategies have been identified and planned in order to achieve the goals of
increasing the company’s revenue and improving the business value as well. The strategies
have been separated in three different genres of class which the strategies will be looked
and narrowed down in terms of financial, technology and product development and
marketing. In each of the category, the strategies implementation will be classified based on
the suitableness to be in which range of time. All the implementation of the strategies will be
detailed out as below.
a) Financial Strategies
RANGE OF TIME STRATEGIES
SHORT-TERM
PLAN
- Requesting the Venture Capital for the purpose of leveraging
the technology that involving the development of the system
and for the management activities to increase the business
value.
TACTICAL PLAN - Issues the securities to the Investment-Banking firm.
LONG-TERM PLAN
- Implementing the Seasoned Equity Offering (SEO) to the
outside potential investors.
For short-term planning, the company will request the funding from the local Venture
Capitalist which is the Malaysia Venture Capital Berhad. The purpose of taking this step is
because the company is not able to afford taking high risk by immediately straight issuing
the securities to public investors. The fund gathered will be allocated for the activities of
leveraging and improving the technology of developing the system and for the management
team to use it in purpose of increasing the business value (i.e. SEO system and
synchronizing the database system).
The company’s planning for tactical planning is to issue all the securities or stocks to
the Investment-Banking firm. This is one way of getting the desired amount of capital yet
minimizing the risk. The Investment-Banking firm will act as the underwriter to issue the
company’s stocks since they have the experts of approaching the potential investors.
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13. CONFIDENTIAL
For the long-term plan, the company will be executing the Seasoned Equity Offering
(SEO) in 10 years time, which will once again issue the securities to the public potential
investors.
b) Technology and product development strategies
Below shows the product development strategy that provides the framework to orient
Arbitrage Enterprise development business as well as its development process. This
strategy takes into account the company’s capabilities, the competition’s capabilities, market
needs and opportunities, goals and financial resources.
RANGE OF TIME STRATEGIES
SHORT-TERM
PLAN
(OPERATIONAL
STRATEGY)
- The technology being used in the product will be mainly focus
on the usage for website development system and social
networking tool as medium to connect people
- Establish official social network platform through Social
Network like Facebook, Twitter and other social network
MEDIUM TERM
(TACTICAL PLAN)
- Add multiple language features
- Integrated payment gateway with Maybank2u.com and
Cimbclicks.com
- Add video features
- Special Discount features
- Integrate the website with the commission system for the
reseller
LONG-TERM PLAN
- Add more currency options
- Mobile Application Development
- Add webcam features
- Loyalty and Membership Point System
In terms of technology and product development strategies, the technology that will
be used in Funten.com will be more focusing on the usage of web technologies network
and Internet. Meaning that, for one year duration of time, Arbitrage Enterprise will focus on
developing the visibility of the web content design and online catalogues products/services
and providing secure transaction business operation in this website over the network.
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14. CONFIDENTIAL
Arbitrage Enterprise will start establishing the official account in social network. The
purpose of establishing our own social network account is to establish a presence and do
promotion and marketing, by using social network tool like Facebook, Freelancer, Twitter,
and etc.
In medium term, we will add more features in funten.com such as multiple language,
more currency options, video modules, integrated local payment gateway, special discount,
and commission system. Besides, as seeing the potential of this business growth from time
to time, the Funten.com will do enhancement of this website’s contents and functionalities
depending on the current trend of communication. For instance web cam feature is
embedded into this website for better use of the need customers to discuss with the
sellers/suppliers lively.
For the long-term planning, Arbitrage Enterprise has planned to extend the offering
products/services for Funten.com from Indonesia, Vietnam, and China with the initiatives of
collaboration to enlarger other products demands from different countries. Therefore, the
development of this website will be translated into different languages so that can be
accessible by the respective country. To ease to usage of this Funten.com service,
Arbitrage Enterprise will develop software that has the functionalities to integrate all the
online catalogue and transaction functions that will be installed in the mobile phone.
The company realized that the technology keep changing rapidly and the new
technology will be existed in the market place for like every minute. Thus, collaborating with
other company to share the technology involve in making the system would be a way that
the company’s Research & Development department grows in a fastest way.
c) Marketing
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15. CONFIDENTIAL
RANGE OF TIME STRATEGIES
SHORT-TERM
PLAN
- Add more pricing options offered to the customers.
- Distributing flyers and brochures to the selected target place.
- Guerrilla Marketing through Social Network like Facebook,
Twitter and other social network
- Free Registration
- Collaboration with RM 1/RM 5 retails shops
- Open booth in Institution Higher Learning (IHL)
- Luck Draw for Visitors
- Search Engine Optimization
TACTICAL PLAN
- Outsource the Search Engine Optimization (SEO) experts for
the web development process.
- Execute reward programs to loyal customers.
- Approach the traditional marketing (i.e newspapers,
magazine
- Collaboration with Maybank2u.com
- Add webcam features
- MOU with Entrepreneurship Club
- Special Discount on occasion/functions
LONG-TERM PLAN
- Make it available via Mobile Application by having
collaboration with the local mobile phone company so that the
application will be used in that particular hand phone.
- Approach the international market place, expands to
Indonesia, Vietnam and China
For short-term planning, the pricing options offered to the customers will be added.
Meaning that, we will offer the RM10 pricing options as a start and upgrade the range value
of the product price to RM50 and RM100 pricing options, so that it will not be limited to the
RM10 product price only.
Start up product/services pricing options
a) Price A- RM10
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16. CONFIDENTIAL
Future add-on (upon request from customers)
b) Price B- RM50
c) Price C- RM100
Flyers and brochures will also be distributed as well as opening the booth at the
targeted place such as Tronoh, Seri Iskandar, Ipoh, and higher learning institution in
northern area (ie; UTP, Uitm, IKBN, IPBM, and Polytechnic), schools and more. This is to
make the potential customers aware about the existence of Funten.com. Parallel with these
two activities mentioned earlier, the team will execute the online-marketing as well. As
nowadays, the online social networking and blogging are popular among the internet
societies. By approaching the new trend of marketing, the company can promote its
existence while still having the cost advantage.
Other than that, the company will also offer for free registration as well as trial
package for the customer to get more familiar with Funten.com. Other than that Arbitage
Enterprise also will collaboration with RM 1/RM 5 retails shops so that the shops can
advertise their product here in Funten.com and give more choices for the buyers to but their
desired product.
For tactical planning, the company will use the Search Engine Optimization (SEO) in
order to make the company’s link searchable. Other than that, the team will be more
focusing on customers, meaning that the Funten.com will be more customer-oriented with
friendly and aesthetic user interface. Activities such as the loyalty programs and also giving
discounts to the customers who have spent at the certain level of amount is one way to
attract more participants in Funten.com. Joining the exhibitions and sponsoring corporate-social
events are being planned as well as it can give the direct awareness and promotion to
the potential customers. Besides that, the company will also use the approach of traditional
marketing by using newspaper and magazines. The team will also add the collaboration with
Maybank2u.com for integrated local payment gateway.
The company will offer the customers with the website that will not only offer RM10
products but also varies, depending on the customer’s request and feedback. From time to
time, the team will upgrade the website and put more features, for example, the webcam
features. Therefore, the team expects the customers will be varied, not only from the Young
people but also the businesses/ aging people.
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17. CONFIDENTIAL
For long-term planning, the team will have collaboration with the local mobile phone
company to make it available via Mobile Application. This is to make sure Funten.com
available on the phone so it can be used by the customers everywhere with the small
device. Other than that, the company is planning to enter the global market place. The
company will start to approach the international market place, expands to Indonesia,
Vietnam and China. By opening branches at different countries, the problems of facing the
non-integrated information are high. To overcome this problem, the team has planned to
develop a centralized web-based system for the purpose of integrating the information. By
doing this, all the customers can have the access of the desired information easily,
depending in which level the customers are. The team will also add more languages and
currency options.
Target Markets
Arbitrage Enterprise is a market leader in Asia Pacific that has gained
specialization in leveraging the social network with the website in order for the customer to
sell and buy products by the means of advertising in Funten.com. Being one of the
companies in Malaysia, Arbitrage Enterprise provides good services as well as aesthetic
and user friendly system.
Funten.com offered by the company acts as an intermediary social business
network which connects the groups of sellers promoting their products/services to the
customers on the web and customers can directly interact to the sellers, where all offering
are at price RM 10. Overall this idea is to reduce the streamline operations with unlimited
geographic scope and content providers. It is in line with the company’s missions to drive
the online website to be a platform for talented people from different background who want
to supply and demand any product/service at RM 10 and to become top 10 of online cost-leadership
website that offers unique value for product and services.
The marketing strategy implemented by the company is the niche marketing.
Arbitrage Enterprise offer relatively standardized products with features and characteristics
that are acceptable to its customers, with a minimum level of differentiation at the lowest
competitive price. By offering the price of RM10, the company focused and offer the service
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18. CONFIDENTIAL
to the industry’s typical customer, which the Generation Y that are more familiar with the
social networking, online businesses and Web 2.0 features..
By implementing the niche marketing, Arbitrage Enterprise is able to develop a
marketing mix for these groups of people. These groups of people, lives in leaning
institution, have a good internet connection, love to share their interest with friends using
social network thus generate by using their creativity and unique talent. The price fixing
focuses on the segmented customer who needs to pay is only RM10 to buy their preferable
product and services. For the advertisement price, the seller is offered one year free trial
advertisement. There is no subscription fees charged to the customers that interested to
subscribe in this website. Promotion will be done through various means such as by social
network, promotion from school to school and university, personal selling, search engine
optimization, unique selling proposition and more. As an online business, Funten.com is
available online; 24 hours a day, 7 days a week and 356 days a year, based on the SLA
provided by the web hosting company.
The advantages of niche marketing strategy also help the Arbitrage Enterprise to
be more focus in finding ways to drive cost out of the business as well as in getting the
participants of Funten.com enjoyed the product that being sold at low price. The company
also emphasis on trying to make virtue out of the product features that lead to low cost,
which as low as RM10. In this case, Arbitrage Enterprise will enter the market place with
the cost advantage over its competitors.
Customer Profile/ Target Audience
Funten.com focuses on promoting the business especially for universities students
around Malaysia. The customers will be from the age of 15 to 55 years old. Most of our
customer will be teenagers and youth. Basically teenagers and youth, they frequently used
the Social Network such as Facebook, Twitter, and Friendster. They definitely will know our
website and might be starting to share their interest with friends using social network. The
company offer to people who are interested to make money by using their creativity and
unique talent. What they can gain from here is they actually had encouraged their spirit of
entrepreneurship. The target user for this particular website is based on the following:
1. Student who have finished their secondary school and waiting for their SPM results,
want to make part-time job.
2. Secondary schools students who want to earn extra pocket money to school.
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19. CONFIDENTIAL
3. Universities students who want to make extra money while studying in campus.
4. Workers who want to make extra money during working hours, before becoming full
time entrepreneurs.
5. Freelancers who want to publish their uniqueness and expertise, at introductory
price.
6. Any manufacturing company or retails shops that produce products/services at price
RM 10.
7. People who creative and want to offer their creative product or service at low price.
A study also has been conducted among 72 high profile representatives (please
refer the attachment) from 72 entrepreneurship club in Institute of Higher Learning around
Malaysia. The following are the result of the survey which proved that the company has
been in the right track in developing profile.
Figure 1: The numbers of students using social networks platform
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20. CONFIDENTIAL
Figure 2: Time Spent on Using Social Network in a day
Figure 3: Number of Students Doing Part-Time Jobs
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21. CONFIDENTIAL
Figure 4: Time Allocated to do Part-Time Job in a Day
Figure 5: Prefer to Integrate Social Network into E-Commerce
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22. CONFIDENTIAL
Figure 5.0: Revenue Model
Revenue Model
Based on Figure 5.0, the company has identified 2 sources of revenue gain by the
company. The largest revenue of the company is from the sales of the company’s product
which able to generate 88.5 percents of the total revenue.
The other revenue generated by Arbitrage Enterprise is through the advertisements
and also investment. Advertisement from the company website generated about 3 percents
from the whole revenue. The investment of the company which is after the 3rd year of the
company’s operation generates about 8.5 percents of the total revenue. The company plan
to invest buying shares in the security company to get annually investment.
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23. CONFIDENTIAL
Operational Setup
Operational Setup
For our first store, we have planned to rent a shop lot at the Taman Universiti, Bandar Seri
Iskandar, Seri Iskandar, Perak.
Premises
Premises Details
Address Lot 1, Jalan BU1,
Taman Universiti,
31650 Bandar Seri Iskandar,
Perak.
Ownership Rental Shop
Size 1800 square feet
Benefits -The traffic is high there.
-Near to UiTM Seri Iskandar and Universiti
Teknologi PETRONAS>
Arbitrage Enterprise is a home-based business. As the business grows, there will
be no advantage to locate this business at many locations. This is because the business is
completely online with no requirements to have it at many locations, as the business is
online-based business. It can also be managed and operated from any global location and
not necessarily at Perak.
Equipments & Vehicles
Equipments needed for our company are computers, laser jet printers, internet
broadband, and the computer peripherals. We are planning to have our own company’s van
in two years time. This is for the usage of our marketing activities.
Long Term Goals of Company
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24. CONFIDENTIAL
The management team had set up several goals that must be achieved by the
company in order to ensure that the operation of the company is in line with the
shareholders objectives. The goals and the aspiration of the company should be identified
clearly by the management team, and the goals must be understandable by all people
especially the person who will lead the direction of the company. As for Arbitrage
Enterprise, the management teams had identified several long term goals that should be
achieved by the company within the specific time frame. The long term goals had been set
up with different time frames which are 5 years, 7 years and also 10 years. In order to
achieve the all goals that had been set up, the company should achieve the prerequisite
goals before step up to the next long term goals.
Project Size:
By not only focusing on IHL students, the project size is expected to widen its
connectivity with the users nationally by developing strategic partnership with any
Malaysian’s small and medium business that in line with funten.com mission. High stability
and reputation created will allow the organization to go global through the expansion of
website in Asia Pacific region. Considering all factors, currency traded and language used
will differ accordingly to user’s preferences.
Project Profitability:
The profit will increase by 330% starting from the second year until the 120% from
the beginning of third years. This profit will grow constantly until the company’s new plan is
reset after the fourth year.
Market & Competitors Information
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25. CONFIDENTIAL
Market Analysis
Marketing analysis is a vital element which assists the organization in examining its
major competitors in existing market. Throughout the market study in this social business
network, an organization is able to identify various target market and consumers’
segmentation, the needs and wants of buyers or sellers, driven factors for purchasing
activity among the buyers as well as strategic planning of marketing for product or services.
The booming of online social network such as Facebook and Twitter, and the
increasing usage of smart phone will increase the social network activity tremendously. The
users of Twitter itself boost to 200 million users, while only two countries did not really
participating in the trends. Interestingly, according to trendwatch.com report, Malaysian is
participating actively at Facebook.com.
In 2010, the Ministry of Higher Learning has announced the new policy on promoting
entrepreneurship skills and awareness in the higher learning institution. This policy has been
translated into the Economic Transformation Plan by the Prime Minister, Datuk Seri Najib
Tun Razak. Various entrepreneurial programs have been actively organized for higher
learning institution students to inculcate the spirit of entrepreneurs. Arbitrage Enterprise is
supporting the Government agenda to boost the transformation maturity.
Industry
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26. CONFIDENTIAL
Social business network seems to be new in today’s existing market especially in
Malaysia. Therefore, the level of competitiveness is quite low among the competitors.
Mudah.my is one of the examples that may reflect to this market analysis. The business
nature of this organization is to act as an intermediary for the people to buy or sell the
product. Mudah.my links the users from different country within Malaysia and permits any
advertisement to be post at their website which incurred zero cost. However, after 30 days
of advertisement period, the sellers will be noticed by the system admin to renew their
advertisement. Furthermore, the types of product offered are limited to apartment, house,
car and mobile phone. The price also varies according to its quality and quantity. If the
sellers intend to edit or update their advertisement, they have a few options such as to
replace current advertisement with new one by simply delete or edit the advertisement
easily, but this will incurred some cost. Apart from that, Mudah.my did offer PayPal services
which provide secure online transaction.
Competition
At present, there is no direct competition to Arbitrage Enterprise since in Malaysia
there are no companies providing the social networking web based system for
advertising/selling their products that is similar to Funten.com. Indirect competition may
exist because there are companies which provide website to sell products. However,
Funten.com has created its own competitive advantage by adding more features into the
system. The nearest competitor to Arbitrage Enterprise is Muncom.com, which based in
United States. As stated in the competitors mapping below, Muncom.com provides some
similarities features that Funten.com have. Muncom.com is also an integrated social
network that provides communication between the users. Other than that, in advertising
purposes, Muncom.com offer customization features. Similar to the company’s business,
Muncom.com provide services for the members to keep track of the sales and also
payment transactions. By implementing social network services, Muncom.com also
provides features that allow interaction from the user such as comment, rank, response and
also flag. Funten.com provides more features to make sure that we are different from our
rival.
Competitor Mapping
26

27. CONFIDENTIAL
Strength & Weaknesses or SWOT
27
Figure 14: Main Competitor Focused

28. CONFIDENTIAL
Strengths:
 Unique concept compare to others
competitors
 The price of product and service are
RM 10.00
 Allow buyer and seller to find or sell
product and services effectively.
 Supported by Jobmarket Malaysia
Entrepreneurship Club (76 Clubs).
 Manage by a dedicated team
 Social network leverages
Weaknesses:
 Limited funding to start the project
 The idea never been proven successful
 Hard to promote the web in the
beginning
 Lack of professional /expert support
 Limited time to develop the system due
to TTP period.
 No reputation yet
Opportunities:
 Being the first to provide this type of
service in Asia Pacific
 Finding and collecting rare services
and product
 System can be link to existing social
network website
 Attach to the universities
entrepreneurship club or other
business entities
 Raise the usage of debit card in
Malaysia
 The increasing usage of social
network platform
Threats:
 Larger and better funded company can
copy the idea of the system
 The website cannot be accessed if the
server is down
 Slow internet speed might having trouble
to access the website
 Hackers attack
 Unethical user can deteriorate the
website reputation
Risk Analysis
28

29. CONFIDENTIAL
Risk analysis is a technique to identify and assess factors that may jeopardize the
success of a project or achieving a goal. This technique also helps to define preventive
measures to reduce the probability of these factors from occurring and identify
countermeasures to successfully deal with these constraints when they develop to avert
possible negative effects on the competitiveness of the company. Other than having SWOT
analysis and Competitive analysis to measure the risk that involved in this project, the team
studied and come out with the risk analysis. Through assessing the various possible risks in
3 major environments: customer, operation teams, and technology, the project is overall has
medium risk to completion. Risk mitigation plan will be crafted out to be prepared for the
worse case scenario.
1. Customer Environment (Medium Risk)
As Funten.com is an online business which leveraging on the social network,
the company’s target customers are basically highly familiar with the
technological environment and have good knowledge on navigating the
internet and social network. All these customers are mainly for the Institute of
Higher Learning as well as the working youth. Funten.com appears to the
customers as an added aesthetic as it gives the opportunity for them to sell
and buy products by advertising in the social network. Therefore, it has
become a challenge for the team to tie in the customers’ participation in
realizing a highly user friendly and usable system. As the website being used
by the customer, feedback will be taken in order to upgrade the system. This
is also necessary in competing with the rivals and new entrants. Other than
that, to ensure the customer is satisfied with the service is also one of the
challenges that the team need to face.
2. Operational Team Environment (Medium Risk)
The team is well experience in online and social networking user experience;
however, they have limited expertise in terms of experience in designing a
high value user experience website, online money transactions and most
importantly, in facing the changing world in business. These are among the
challenges that the team need to face as there were lots of crime cases in
this type of business. Also, commitment towards the project development has
become an issue. Human resource is overly loaded.
29

30. CONFIDENTIAL
3. Technology Environment (Medium Risk)
The consistency and accessibility of the system is also one of the risks that
the company need to emphasis on. As the system involved money
transaction, as well as to take care on the delivery of the product that being
sold in the website, the system should be able to cater the entire request by
multiple of customers. Loading time and memory size is also another
concern, whether the system is able to support the size of the video or
advertisement that being display in the system. Troubleshooting process may
involve solving any possible errors or problems and might be very time
consuming.
Section
30

31. CONFIDENTIAL
EMPLOYMENT OF KNOWLEDGE
WORKERS
3
Management Team
Chief Executive Officer (CEO)
Muhamad Wafi Bin Muhamed
Bachelor of Technology (Hons) Business Information Systems
The Chief Executive Officer (CEO) is responsible to align the company internally and
externally, with the strategic vision. The core duty of a CEO is to facilitate business outside
of the company while guiding employees and other executive officers towards a central
objective. In general, the CEO in Arbitrage Enterprise will ultimately set the direction of the
company by setting up the strategy and vision of the company. The CEO also need to
decides, sets budgets, forms partnerships, and hires a team to steer the company
accordingly. Next, the CEO primarily coordinates external initiatives at a high level. As there
are many other chief of the department, for example the Chief Financial Officer and also
Chief Knowledge Officer that responsible to manage their own department, CEO will monitor
the development of each department by getting report from the chief of each department.
Chief Financial Officer (CFO)
Nurul Hafiza Binti Mohd Noor Azam
Bachelor of Technology (Hons) Information Communication and Technology
In the job scope of Arbitrage Enterprise, the CFO supervises the finance unit and is
the chief financial spokesperson for the organization. The CFO reports directly to the Chief
Executive Officer (CEO) and directly assists the Chief Operating Officer (COO) on all
strategic and tactical matters as they relate to budget management, cost benefit analysis,
forecasting needs and the securing of new funding. In addition, the CFO of the company will
assist in performing all tasks necessary to achieve the company’s mission and help execute
31

32. CONFIDENTIAL
staff succession and growth plans. The CFO will work with the CEO on the strategic vision
including fostering and cultivating stakeholder relationships on city, state, and national
levels, as well as assisting in the development and negotiation of contracts. The most crucial
part is the CFO needs to monitor the banking activities of the company. Last but not least,
the CFO Oversee the management and coordination of all fiscal reporting activities for the
organization including: organizational revenue/expense and balance sheet reports, reports
to funding agencies, development and monitoring of organizational and contract/grant
budgets.
Chief Knowledge Officer (CKO)
Zuriati Azhan Binti Zulkifli
Bachelor of Technology (Hons) Information Communication and Technology
The role of the Chief Knowledge Officer (CKO) is to maximize the creation,
discovery, and dissemination of knowledge in the organization. The CKO blends cultural,
business, and technical responsibilities and ensures their co-evolution. The CKO focuses
on improving productivity, profitability and customer value, rather than solely on knowledge
management (KM) technology. The CKO drives the adoption of knowledge use in the
organization. The CKO usually reports to the CEO or highest-ranking position in the
company. The performance of a CKO can be tied to his progress in many areas, such as
increasing revenue, increasing corporate education and learning, and/or establishing and
reusing best practices, increasing efficiency, and retaining employees. The CKO position
would comprise, but not limited to the following responsibilities. CKO need to design and
implement a knowledge-learning culture and a knowledge-learning infrastructure plus align
and integrate diverse groups and functions in order to leverage knowledge management
strategically across the entire corporation.
Chief Technology Officer (COO)
Nadira Syazwani Binti Mohd Shafie
Bachelor of Technology (Hons) Information Communication and Technology
The role of CTO is to understand related technologies and technical opportunities,
understand and help drive alignment around a vision of where the business should go, and
mesh those together to help make disciplined, proactive technical decisions. CTO support
both the business strategy and technical strategy. CTO support the technical team to review
short and long-term technology strategies to help direct strategic technical decisions and
32

33. CONFIDENTIAL
help to ensure appropriate technology usage, help define needed technical research
activities, assess new and emerging technologies to determine application to business
needs, help determine resource needs within business constraints, review and influence
business and technical processes to help balance competing needs and priorities.
From the business strategy perspective, CTO are responsible to provide input on short and
long-term business vision, strategies and plans to help define business priorities, work
closely with operational leadership to review and influence the product road map, review
and provide input on some investor presentation materials, business proposals, participate
in new business, partnership or investor meetings on a limited basis within time constraints,
advise the leadership team on business practices that will help to derive greatest short-term
and long-term value from the technical team and other resources.
Organizational Chart
33

34. CONFIDENTIAL
Human Resource Plan
34
Chief Executive Officer
Muhamad Wafi Bin Muhamed
Chief Financial Officer
Nurul Hafiza Mohd Noor Azam
Chief Knowledge Officer
Zuriati Azhan Zulkifli
Chief Technology Officer
Nadira Syazwani Mohd Shafie
Financial Analyst
Accountant Secretary
and admin
Clerk
Website
Developer Technician
Production Operator

35. CONFIDENTIAL
35
Position/ Role Y1 Y2 Y3
Management Team
Chairman/ CEO 1
1
1
1
1
1
1
1
1
1
1
1
CKO
CFO
CTO
Position/ Role Y1 Y2 Y3
Financial Division
Account and Admin 1
1
1
1
1
Financial Analyst 1
Technical Division
System Developer 1
1
1
1
1
1
1
1
1
Web Developer
Search Engine
Optimization (S.E.O)
Expert
Technician 1
1
1
1
2
Production Operator 2

36. CONFIDENTIAL
Section
DEVELOPMENT 4
PRODUCT OR SERVICE
Product / Service / Technology Overview
Company’s Product
Arbitrage Enterprise main product is an e-commerce that compliments the current
social network business nowadays. This service connects all the people consist of potential
sellers and buyers by using a platform for any low-cost business operations. The sellers can
promote and advertise their offering products/services while buyers can buy the offered
36

37. CONFIDENTIAL
products/sellers directly to the sellers. Arbitrage Enterprise is developing its own B2B
Web-based services with the first product is Funten.com beta to be released in April 2011
and additional products to follow the next every six to eight months.
Funten.com
This web service offers business promotion and advertising of any products/services
at the range of RM10. For every sales transaction, only 10% will be charged from the total
sales into Arbitrage Enterprise account and remaining is for sellers. No advertising fee will
be charged for any seller to advertise their products/services as needed by other websites.
Features provided in Funten.com:
1. Online registration for everyone who interested joining this service.
2. A medium for the cost-leadership society to enjoy the interesting and exciting
online business transaction at lower price which cost any product or service
RM 10.
3. Flexible approach for the sellers to strategize their creativity in advertising
their product or services, through our Web 2.0 features.
4. Online catalogue features also provided for customers’ view.
5. Tagging system that assist the potential buyers search the product or service
available which is corresponding to their needs and wants, effectively.
6. Secured online transaction through PayPal, debit card and credit card
payment.
7. Products or services list can be ranked by the rating and popularity from the
buyers. This will drive towards health competition among the competitors.
8. Feedback and testimonials features are enabled for the buyers to reflect on
the sellers’ performance.
9. Online wallet.
10. WeCare offers 24 hours and 4 days customer support services which protect
the users with transaction problem, privacy issues or any related issues with
the website service.
Specific benefits:
a) End-users/Buyers: a fun place to confidentially access in-depth information, trends,
advice, products/services and other people on the network
37

38. CONFIDENTIAL
b) Advertisers/Sellers: access to a huge market with low-cost of promotion
Ability to meet needs
a) End-users/Buyers: build a diverse group of people to provide a unique range
product/service offered and information that suits to their demands and needs.
b) Advertisers/Sellers: provide exposure and data analysis on a specific target
group
Competitive advantages
a. Internet business
1. Low cost of delivery
2. Unlimited geographic scope and content providers
3. Links to other resources
4. Likely first mover in target market
b. Specific target business : using social network tools as a medium like Facebook,
Youtube, Friendster to fast reach target market, as people connected on the social
network already become the Funten.com’s current customers
Core Technologies
The development of Funten.com website service will be featured with the latest Web
technology programming consists of XML, HTML, PHP, with Web 2.0 features, and multi-media
technology in conjunction with e-commerce websites. Web 2.0 technologies are the
second generation of information technology that seeks to create a network of users that
can directly collaborate on projects. The service will utilize the latest in Web 2.0 version and
social networking to be marketed to all people on the network.
A web hosting services or local server, and registered domain will be used. Besides,
SQL programming language will be used for storing and retrieving data from the database.
Several dummy data on users/products/transaction will be created in order to portray the
working and functional website. This technology combination will add a significant dimension
to the Funten.com platform and dramatically increase the efficiencies and economies of
using the Internet to manage growth, coordinate internal customer activity, and provide a
common service.
38

39. CONFIDENTIAL
Operations
Operations for Funten.com as an Internet-based business are minimal compared to many
other opportunities. All needed services such as design and server access can be in-sourced
or out-sourced, though total outsourcing would be an unusually risky strategy. With
such low barriers to entry, however, the low cost of operations may attract competition once
this business has proven success in the market.
Production and Service Delivery Procedures
Internal Explanation
Site design and maintenance
1) Requires graphics and Internet expertise
2) Break out specifics, navigation, and graphical issues
where possible - this will be critical to the site and in-house
expertise needed, as well as the need to
provide graphics and technical support to advertisers
Network server space and
maintenance
Large capital investment, easy to outsource until capacity
requires investment
Content
1) Primary competitive advantage - this would be
critical to the Funte.com site and in-house editorial
staff needed to build and coordinate remote
contributors
2) Products/services information, costs and direction
required
39

40. CONFIDENTIAL
External Explanation
Site design and maintenance
1) Could potentially be outsourced
2) Fees, schedule, art direction, and other details
required
Network server space and
maintenance
1) Large capital investment, outsource until capacity
requires investment
2) Timing and costs will be involved in this shift
Content Least likely to be outsourced
Mechanism
Customer Seller Funten.com
Select
Products/Service
s add to
shopping basket
Order Product
Check and
perform order
40
System performs
availability check,
calculates pricing, and
prepares orders
Select payment
method and
delivery type
service
System performs
10% service fees
System performs
credit card check
(optional)

41. CONFIDENTIAL
Current development or R&D status
For current website development and conversion enhancements section, Arbitrage
Enterprise giving full commitment to make this Funten.com system as efficient and secure
possible and provide an expert review of the conversion capability, content and usability of
the Funten.com’s website. The review covers the following areas:
· Content and messaging
· Site architecture and navigation
· Information architecture/hierarchy
· Visual design/Presentation and layout
· Website usability
· Website functionality
· Customer communication and feedback
· Trust and confidence building
· Overall user experience
· Error handling
41
System processes order
System sends order
confirmation and status
to customer
System provides invoice
to customers
View order
confirmation,
Status and invoice
System trace order
– Payment hold in
the seller wallet
until customer
confirmed the
delivery

42. CONFIDENTIAL
· Technology
Product strategy for current or future products
In order to make Funten.com visible to the others, Arbitrage Enterprise found that
social networking like Facebook, Friendster, Tweeter, Youtube and others will be as a
strategic tool for promoting the existence of this service to people on the network. This tool
marketing is used in order to build brand-awareness, influence the acceptance and
promotion of products and services, to generate website traffic, viral buzz and incoming links
to their websites for search engine optimization purposes. This Funten.com service initially
will provide a business of promoting and advertising low-cost of products/services in the
range of RM10 with 10% for service fees will be charged from the amount. Free registration
also provided at the startup for the people to register the service.
The future product will be more attractive by enlarging and extending the size
products/services offered not only limited from local country but also from other countries
like Indonesia, China, Thailand and etc. Other than that, it is also more interactive by adding
some new features like web camera to enhance the virtual communication between
suppliers/sellers with the buyers/customers lively on the web. Arbitrage Enterprise also
has planned to expand type of Funten.com application on mobile device so that customers
are accessible to Funten.com service everywhere and anytime. Overall, the presentation
for future products development, selection, and designation in a long-term product strategy
are actually has a relation between market segments, market demand, market needs, and
current products/services trend.
Free Registration
Funten.com launching
Promotion through
social network
42
Analysis the market
trends
Maintain Funten.com
system
Collaborate with more
sellers
YEAR 1 YEAR 2

43. CONFIDENTIAL
Analyzing the business
growth
Adding benefit of
customer value
Extend offered products
from different countries
Intellectual property
As businesses develops company brand in the market and create new
products/services and business processes, it is important to protect Arbitrage Enterprise’s
Intellectual Property. As a registered patent attorney, the protection of intellectual property
will be very important. Therefore, this Funten.com business should have a strategy to
ensure it does not waste time and money.
An intellectual property (IP) strategy requires an IP audit. Business name, logo,
website, manual workers, employment agreements, consulting agreements, sales
agreements, nondisclosure agreements, copyrightable works, products, and business
processes will be audited under intellectual properties of Arbitrage Enterprise. It is to
determine the type of safeguards that should be put in place for IP protection.
Research and Development (R&D)
43
Spread the service and
expand the range of
products/ services
packs more than RM10
YEAR 4 YEAR 3

44. CONFIDENTIAL
Forecast development as a part of Funten.com solution improvement. Overall research will
be included looking at potential new customer bases, how a new service may affect the
business whether a new product will meet the customer needs and specifications and
upgrading the products/services packages, design or functionalities of the Funten.com
service. Below are the outlines overviews of R&D that will be covered by Arbitrage
Enterprise:
a) Market Analysis: Continuous development of the website service will be important to
maintain and enhance the end-user base by doing analysis through surveys, trend
forecasting, and others. This Market Analysis section describes the research about
clients’ target market (audience), target market trends, characteristics and the social
activities.
i. Target Market (Audiences)
The Target Market researches is about analyzing the demographics, activities,
behavior and the social communities (platforms groups) where the clients’ target
audience(s) interacts, share information and make recommendation.
ii. Target Market Trends
This section provides an insight in the trends that are emerging within the clients’
social media target markets. This may include the social media capabilities of the
clients’ target audience(s), the social media platforms they are migrating to, how
their interaction is changing and how this is going to affect the relationship
between the client and the seller.
iii. Target Market Characteristics and Needs
The Target Market section is mainly will examine and describes the technology
platforms with actual behavior and sophistication levels of the clients’ target
audience and also assesses the clients’ current social marketing activities.
b) Web Enhancement: continuing site development will allow for increasingly in depth
coverage of topics of interest, addition of niche pages, immediate survey response, trust
and security, flow of information presented and etc. This type of research is objectively
to examine the visibility elements and performance issue of the website system to the
users.
c) The Drawbacks of the Products and the Solutions
44

45. CONFIDENTIAL
System developer and the management team have identified the drawbacks from
Funten.com service that will be facing by the customers. A researched had been done
to cater about these issues and have found the solutions to overcome the possible
problem. The explanation will be detailed out as follows:
Table 4: Recommendation for any problems or issues arises
No Problems and issues Recommendation
1 Problem of accessing the
website/account or any
inquiries.
Customers can directly contact the system
administrator through email or phone. The details of
the email and phone number will be provided under
the customer service link provided in the
Funten.com.
2 Sales products/services
information is not updated.
Website will be updated time to time according to the
current sales out from the suppliers/sellers.
3 The process information of
transaction is not cleared.
Funte.com will be updated value-adding information
on products as well as making price information and
the pricing process and transaction.
4 Tracking product delivery
status.
The status of product delivery or transaction will be
clearly informed and updated.
5 Online operation is not secure. Arbitrage Enterprise will protect this online
business against hackers who could steal vital of
customer’s information, and monitoring the security
45

46. CONFIDENTIAL
of the system time to time. Funten.com uses
encryption software to protect customers’
financial information from theft during
transactions.
6 Some of the sensitive
information can be accessible
by others people.
Arbitrage Enterprise will provide the limit access
of sensitive information to those who need to see
it on the Funten.com. Privacy on customers’
information is really highlighted.
Overall, Arbitrage Enterprise will always try to give a guidance and protection for every
problem and issues arise to their customers in order to provide them the best, secure, and
efficient services throughout the years.
4. 3 Benefits & Customer Value
The idea type of service provided by Funten.com is essential for a business project
to ease and give more benefits to all the end users or customers that associated to this
service. As Funten.com is the first product from Arbitrage Enterprise, the company
intentionally providing business of promoting and advertising products/services, by using a
platform to connect all the potential sellers and customers doing their business activities
over the network. Social network is used as a medium for this business operation. Here, the
significance of using the social network tool is clearly defined as all the people who are in
the social networking is already become as current customers or clients and by using this
tool as the medium, it provides benefit of many potential chances of reaching the target
market. Therefore, the contribution of this project can attract many participants to join this
Funten.com service, leading creation new business ideas of promoting their products or
services, can increasingly the revenues generation in the future.
Besides, low-cost offered products/services promoting in Funten.com can extremely
attracting more people to start their small business either from home without having the
formal place, part-time business and others through this website. It is because Funten.com
customers can be varied among students, entrepreneurs, employee, or even housewife.
46

47. CONFIDENTIAL
Furthermore, Funten.com will only charge 10% from every RM10 transaction for its service
fee and no advertising fee for the sellers. This is one of the uniqueness of this service
provided by Funten.com compare with other websites that have charging some fees for any
advertising on their website. For the sellers, they have their own creativity to do their
promotion and advertisement their products/services in Funten.com because Funten.com
provides flexible concept for them to attract the customers.
As this business expected will grow from time to time, Arbitrage Enterprise has
planned to expand the product business range more than RM10 and collaborate with other
potential groups sellers from other countries in the depending on the customers’ demands
and needs. Therefore, a market analysis will be conducted to see the current trend of
products/services promotion, customer behaviors and type of products/services offered by
other the sellers.
Section
5 MARKETING PROGRAMS
Marketing Overview
Arbitrage Enterprise has studied the potential market environment to decide whether the
current market place is attractive enough for the company to enter. Based on the Porter’s
model, the team will first look at the broad views of the markets.
The factors that influence the attractiveness of the market place for this particular of industry
would be based on these five aspects, which are
:
a) Rivalry among companies competing in the industry
47

48. CONFIDENTIAL
b) Bargaining power of suppliers to the industry
c) Bargaining power of buyers
d) Threat of new entrants to the industry
e) Threat of substitute products or services
As being discussed in the competitor’s mapping, in order to achieve the lowest cost
position means that a company’s competitors will hesitate to compete on the basis of price
because Funten.com will continue to earn profits with the price competitive advantage over
its rivals. Besides that, Funten.com also getting the competitive advantage over its rival as it
offers and adds up more features, for example by having integrated social network,
customization features on advertising, inserting the video, picture, audio or graphic, tagging
system, profile management as well as free advertisement fees unless if there is a sales
being made. Hence, the threat of rivalry among competitors for the company is medium.
The company is not threatened with the risk of high power of suppliers to the industry
because the company is the one who have come out with the technology to be used in
making the system. Other requirements or services needed , for example, the domain
name , server, data storage needed for this system can be easily get in the market place
since they are many suppliers who offered these particular of items. There supplier has the
power, but with good channels with the supplier, the company can get the best resources
with good price. The suppliers power is low, thus, the company is saved from the rapid
changing of resources’ price.
The power of buyer can be categorized in the medium risk class. This is because there
are still no companies that are offering exactly the same features and capabilities as our
company does. Yet, the customers can still choose the alternative product that can give
them the same benefits and this why the risk is medium.
The risk of the threats of the new entrance in the industry is medium. Other new
companies that wish to enter the industry can observe and duplicate the existing system or
even upgrade the system to a more powerful system. However, it is not such a threat
because of it will take time to come out with the same system and even getting the loyal
customers for their new system and by that time, Arbitrage Enterprise can mark down the
price of the services/ system or even adding more features that is reasonable for that time..
48

49. CONFIDENTIAL
The e-commerce systems that have existed in the market place nowadays are different
from what Arbitrage Enterprise is offering to the customers. However, as Funten.com is
more towards services, there will exist the substitute as the technology evolved, but it will
take a long time to have the substitute for this service. Hence, risk on threat of other
substitute product would be low since there are no systems in the current market place that
has the same technology with us.
Force Importance
(1 to 5)*
Threat to
Industry
(1 to 5)**
Weighted
Score
Col x Col
3
Rivalry among companies competing in
the industry
5 3 15
Bargaining power of suppliers in the
industry
2 2 4
Bargaining power of buyers 3 3 9
Threat of new entrants to the industry 4 3 12
Threat of substitute products or services 3 3 9
Total 49
Figure 2.0 Five Forces Matrix
Note: * Scale of importance from 1 = not important to 5 = very important.
** Scale of threat to the industry from 1 = low, 3 = medium, to 5 = high.
Minimum score = 5 (Very attractive)
49

50. CONFIDENTIAL
125 (Very unattractive)
Figure 2.0 shows the analysis that have been calculated based on the Five Forces Matrix.
The result shows the market place that the company would enter is attractive; means has
lots of potential to grow
TARGET MARKET
Arbitrage Enterprise have identified the target market for Funten.com offered in
the market place and based on several factors that have been considered, the company
decided to be in the concentrated market. Below are the factors that have influenced the
company to come out with this targeting strategy.
a) Company resources – Since Arbitrage Enterprise have just started the
business, the current capital that the company’s owned only allowed the team to
spend it to have just enough resources. The resources including the
maintenance of the website, the server, the workers, the expert are needed as
this type of businesses is new in this country. Thus the company need to ensure
the success of Funten.com .As the resources are finite, that is why concentrated
targeting strategy would be the concentrated strategy.
b) Product Variability – The e-commerce system that is 60% similar to Funten.com
(in terms of functionality) that are offered in the current market place are variable
in terms of the size, functionalities and designs. Concentrated strategy is the best
strategy to be implemented in order to handle this type of condition.
50

51. CONFIDENTIAL
c) Product Life Cycle Stage – Funten.com is still need to be improved and
upgraded to a better system form time to time. By executing the undifferentiated
is a big mistake for us as it is hard to compete with the existing products.
d) Competitors marketing strategies – The team found that our 65% of its indirect
competitors are majority in the undifferentiated targeting strategy and the efficient
and effective way is to be in the concentrated targeting strategy.
Arbitrage Enterprise will put more focus on the people who are studying in Higher
Learning Institution or even the teenagers with Internet access. The characteristics for the
target people that we have chosen are as below:
Characteristics Description
Occupation Students/ Middle-aged Employees
Lifestyle -Accessing internet
-Social Networking
Geographical Area -Institute of Higher Learning
-Businesses
MARKET SIZE, SALES, & SHARE PROJECTIONS
Sectors No. of Intakes No. of Enrollments No. of Graduates
IPTA 128,337 462,780 74,575
IPTS 81,804 408,034 31,713
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52. CONFIDENTIAL
KTAR 10,821 23,774 8,352
Polytechnic 41,382 87,751 32,503
Community College 10,689 18,200 4,668
Total 273,033 1,000,539 151,811
Figure 7: The numbers of intakes, enrolments, and graduates of IHL in 2010.
Arbitrage Enterprise is providing service through online. There is a very big market
there. However, for the marketing purpose and in Phase 1, this website is just focus on
several target customers as mentioned in Customer Profiles. The market share growth will
be limited by the market demand and the ability to make this website is well-known to the
entire Malaysia.
According to the statistic, there are 273,033 numbers of intakes of higher learning
institutions, and 151,811 numbers of graduates in 2010. 1,000,539 numbers of enrolments
recorded for the year 2010. This numbers would have increased from years to years as,
Malaysia is recognized the important of learning institution in the Economic Transformation
Plan (ETP). This numbers not only represents the numbers of students in academic
purpose, but also the co-curricular sides. A survey shows that almost 6 over 10 students
wants to make part-time job to support their living in the learning institution. The numbers of
clubs/society/association in higher learning also keep increasing. These entities also
encouraged theirs members to do business, to support their organization, as well as the
students itself.
Indeed, there are a big number of potential customers but somehow, we projected
and set a target that only 15 percent of them will visit our website within the first year of
Funten.com, since this website is just new in the market.
52

53. CONFIDENTIAL
Figure 8: The percentage of students in IHL sectors for 2010.
The growth of Arbitrage Enterprise market share can be expanded by increasing
the market demand. Market demand is total amount of consumer purchases of a particular
product in a specific market over the specific period of time within a specific marketing
environment under clearly defines levels of marketing expenditure and effort. One of the
ways to increase market demand is by have a mailing list to subscribe to on the web site.
More demand also means that more people will be coming to Funten.com. While not all of
them will engage our services or buy our products, we are able to keep in touch with as
many of them as possible. We can always update with them the latest products and services
posted in the website based on their preferences.
The company will position Funten.com in the class of more for more. It means the
product that Arbitrage Enterprise are offering will have more benefits and the
functionalities will be added if compared to the existing product in the market place but with
a little higher range of price.
53

54. CONFIDENTIAL
Figure 6: Preferable Features for Funten.com
Marketing Program
MARKETING MIX
a. Product
Our main product is our website itself which is known as Funten.com.
Through this website, we provide service to people who want to sell their product
or services. The seller can use the website to promote and advertise about their
product or service, while the buyer can use this website to order the product and
service that they are interested in. The seller and the buyer can interact with
each other through our communication channel which is forum. Through the
forum, the seller can convince the buyer about the service and product they
offered as well as the buyer can share about the experience for the product and
service. The buyer can also ask anything that comes across their mind.
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55. CONFIDENTIAL
b. Price
The price that the customers need to pay is only RM 10 for a product or
service that they get. For the advertisement price, the seller is offered one year
free trial advertisement. After one year, they need to pay for the advertising
expenses. This is to make sure that they are really convinced and interested in
the service offered by our website. There is no subscription fees charged to the
customers that interested to subscribe in this website.
c. Promotion
1. Using Web 2.0 and social network
Web 2.0 sites are social network and social bookmarking sites enabled. The
examples of Web 2.0 include Technocratic.com, Delicious.com, Furl and
more. Social networking includes Twitter, Facebook and MySpace and can
be used to attain links back to our website and inform others on our website
as Facebook has also recently launched their new Facebook Ads which are
competing against Google's AdWords program. All of these can be used to
advertise our website. We can keep in touch with customers, email lists,
prospects and just friends that have the same interests as us. We will also
create a group for the customers to be able to share their thoughts. We can
also pass some of this information on to our customers and contact list.
2. Promotion from school to school and universities
Since the main targets of our website are students who have finished their
secondary school as well as university students, it is the best way to promote
in schools and universities. These groups of customers are also not a loyal
brand customer. They can be easily influence when the website can benefit
them.
3. Personal Selling
Promotion can be done online using personal emails and forums. The
purposes are to maintain a strong connection with customers online, provide
information about new products and services posted in the website, and
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56. CONFIDENTIAL
educate customers on new developments regarding our website. Trust can
be built in our sales contacts with our written words and our voice through
podcasts. It encourages our online customers to refer back to us about other
interested parties.
4. Search Engine Optimization (SEO)
We will be implementing the search engine marketing as a way to market our
product online. As we are not expert on this field, we have decided to
outsource the SEO experts. The SEO experts as well as our Web Developer
will get together in making our product and our company to be visible online.
The reason of implementing this marketing strategy is because we realized
that the functionalities of the 10 most popular websites in the world have the
search engine functions. High marketing impact and cost advantage are the
results that we expect to receive.
5. Unique Selling Proposition
Besides that, the company tends to connect with the customers on an
emotional level as well. Meaning that, rather than competing with the price,
the company will try to stress to the customers on our Unique Selling
Proposition (USP) on what are the uniqueness of the product and the benefits
that the customers will get from the product. In order to convince our
customers, we have come out with the positioning statement which is:
56
“To those people who want to be entrepreneur, our Funten.com is the
best platform that is not only will provide our customers with the ease of
doing online business but it also a system that will leverages your own
online social network. No service charge if no sales. Everyone can be
entrepreneur!

57. CONFIDENTIAL
d. Place
As an online business, our website is definitely available online. To make
sure our website is easily spotted by our targeted customers, we are going to
place the advertisement for our website in the famous daily browse website such
as Google, Yahoo and social networks such as Facebook and Twitter. Our
website is also available 24 hours a day, 7 days a week and 356 days a year.
Sales Strategy
Sales strategies refer to the planning of ways to improve sales activities. Our sales
strategies consist of three main objectives which are methods of reaching clients, gaining
and competitive advantages. These objectives will be implemented in our day-to-day
business process.
a. Method of Reaching Clients
Funten.com does not sell any physical product. Instead, the website will provide an
advertising platform to any small entrepreneurs to tell the world the existence of their
services or products. First, we need to make sure that our website is known by many
people. From here sellers or suppliers will have their confident with our website. After
gaining confident with our websites, they will start to advertise and offers their
product in our website. To achieve that, we will make our website as one of the top
search results in Google. The website will also be linked to several popular websites,
such as blogs and social networks such as Facebook. It is purposely to reach the
large users of those websites. Other than that, the website will be developed in a
simple and interactive way to attract the users to continue revisit our website. In
addition, the website will be very easy to understand because of the large population
of internet users which contain people from different countries and speaking different
languages as we use English as the main language, followed by few other
languages that will be put it as the systems grow. These strategies will help us to
reach as much clients as possible.
b. Gaining Competitive Advantages
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58. CONFIDENTIAL
In order to differentiate our website from others, we need to ensure that we have
several key features that others do not. Funten.com will be different from other
websites because all the products and services that we advertise are only cost the
buyers RM 10 which is affordable to everyone. Besides that, the products and
services that posted in our website will be very unique and different from the
commercial products and services. The cost for advertisement on our website will
also be one of the cheapest that are available today. The buyers are also able to
advertise interactively as they are able to include images and videos in their posts.
These key features of our website will help us to gain competitive advantages and to
differentiate us from other websites.
Advertising and Public Relations
For the first phase, our main target for this website is for youth especially for
universities students. In order to promote this websites to them, we used social network
tools. It is because social network is the one of most efficient and easiest ways to introduce
and advertise our website to our potential customer especially for youth generation.
Examples of social network such as Facebook, MySpace, Twitter, Friendster and others
social network. Using this method, it will be able to advertise our website to public.
Other than that, by sending emails to potential customers such as universities’
students, business men and organization or small manufacturing company also one of the
approaches to do the promotion. Besides, linking the website through blogs and
organization’s website also will increase the probability of introducing and advertise the
website to the potential users or customers. Through these ways, we would not only
advertise and promoting our website but go one step further to increase our chances of
competing with other competitors.
Any user that wishes to use our service and advertise in our website just only needs
to register with us and then they can easily access and use our services to advertise their
products or services. If any problem or inquiry they can directly contact the system
administrator through email and also using telephone. Other than that, we also will
launching our website at the selected university and also do some promotion at other
university. This will help our website to gain recognition from our target market which is
universities students. We will also do the advertisement on website that link to entrepreneur
society or group which will increase their exposure in our website. It is kind of promotion for
this organization which is purposely to encourage people to involve in entrepreneur field.
58

59. CONFIDENTIAL
We will also promote our website during events that engage all entrepreneurs
especially that for young and small entrepreneurs. Events like young entrepreneurs
conventions will suite us well with our target as this kind of event is where universities’
student that involve and interested in entrepreneurship gather so this will be a very good
place for us to promote our website and attract them to use our website service.
Section
6 FINANCIAL PROJECTIONS
Financial Overview
Arbitrage Enterprise
F1 : Financial Projections (RM)
Year 2012 2013 2014
Sales (Local) 31,410 30,920 32,060
Sales (International) 3,490 7,730 13,740
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60. CONFIDENTIAL
Total Sales 34,900 38,650 45,800
Net profit (loss) before tax 15,283 16,746 37,208
Net operating cash flow 10,748 14,224 22,436
Liquid Assets 16,320 31,864 66,990
Stocks ( Inventory) 0 0 0
Trade Debtors 6,980 6,442 7,633
Current Assets 23,300 38,306 74,623
Fixed Assets (net) 6,650 5,960 5,370
Current Liabilities 688 1,334 1,022
Long-Term Liabilities 14,333 50,999 32,666
Paid-up-Capital 1,000 2,000 3,000
R&D Investment ( at cost) 11,370 4,850 4,370
Net worth ( cumulative ) 29,817 81,028 97,403
F2 : Breakdown of Sales (RM)
60
Item * 2012 2013 2014
Content Edition/Enhancement 0 0 0
Interactive Services 0 0 0
E-Commerce 5,000 6,000 7,000
Software Integration 0 0 0
Website Development Income 0 0 0
Hosting Fees 0 0 0
i-directory listing 500 1,000 1,500
Sale of Portals 0 0 0
Fulfillment charges 0 0 0
Licensing 0 0 0
Subscription 200 400 600
Transaction Fee 28,600 30,600 36,000
Advertisement 600 650 700
Data Centre Management 0 0 0
Call Centre Management 0 0 0
System Integration and Testing 0 0 0
Others :- 0 0 0
Total 34,900 38,650 45,800

61. CONFIDENTIAL
F3 : Breakdown of Research & Development (RM)
Item * 2012 2013 2014
R&D staff salaries **
--Chief Designer 0 0 0
--Web Designer 500 500 500
--Web Engineer 1,000 1,000 1,000
Sub-total 1,500 1,500 1,500
Technology acquisitions - Hardware
--Computer Servers 350 350 350
--Personal Computers 3,500 0 0
--ISDN Lines Connection 960 960 960
--Workstations Hardware & Accessories 500 500 500
--Furniture & Fittings 1,000 500 0
--Others:-(please specify) 0 0 0
Sub-total 6,310 2,310 1,810
Technology acquisitions - Software
--Software Licencing for Windows NT 0 0 0
--Software for Hardware Development 0 0 0
--Design Tools 600 0 0
--Others:-(please specify) 0 0 0
Sub-total 600 0 0
Prototypes
--Content & Design Fee 500 0 0
--Mould Making 0 0 0
--Prototyping Costs 1,000 20 30
--Others:-(please specify) 0 0 0
Sub-total 1,500 20 30
Consumables / Incidental Costs 1,000 1,000 1,000
Patenting & Copyrights 450 0 0
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62. CONFIDENTIAL
Others:-(please specify) 10 20 30
Grand Total 11,370 4,850 4,370
Profit and Loss Account
PROJECTIONS
2012 2013 2014
RM RM RM
SALES 34,900 38,650 45,800
GROSS PROFIT 34,900 38,650 45,800
less:
General & Administrative Expenses
Directors' remuneration 0 8,650 5,800
Rental of premises 300 400 500
Salaries, allowances & bonus 6,000 6,000 6,000
Utilities 160 160 160
R & D expenses 2,960 2,520 2,530
Others:- 0 0 0
Total G&A 9,420 17,730 14,990
Sales & Marketing Expenses
Advertisement 6,000 5,000 4,000
Entertainment 0 0 0
Printing and stationery 600 600 600
Salaries and commissions 3,600 3,600 3,600
Travelling expenses 1,200 1,200 1,200
Total S&M 11,400 10,400 9,400
Other Income 6,667 11,667 20,000
PBDIT 20,747 22,187 41,410
less: Amortization of R&D 4,205 3,921 2,672
Depreciation 1,200 1,440 1,440
PBIT 15,342 16,826 37,298
less: Financial Charges 58 80 90
PROFIT / (LOSS) BEFORE TAXATION 15,283 16,746 37,208
LESS : TAXATION 0 2,400 2,700
PROFIT / (LOSS) AFTER TAXATION 15,283 14,346 34,508
Minority Interest 0 0 0
Distributable Profit 15,283 14,346 34,508
less: Dividend 800 800 800
Retained Profit / (Loss) For The Year 14,483 13,546 33,708
Retained Profit / (Loss) B/fwd 0 14,483 28,029
Retained Profit / (Loss) C/fwd 14,483 28,029 61,737
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63. CONFIDENTIAL
Balance Sheet
PROJECTIONS
2012 2013 2014
RM RM RM
Research & Development (net) 4,205 2,614 1,782
Investment 5,000 9,000 12,000
FIXED ASSETS (net)
House Rental 300 700 1,200
Web Hosting 350 700 1,050
Office Equipment 833 633 433
Motor Vehicles 5,000 3,800 2,600
Others 0 0 0
6,650 5,960 5,370
CURRENT ASSETS
Trade debtors 6,980 6,442 7,633
Cash and bank balances 16,320 31,864 66,990
Prepayments & Deposits 0 0 0
Stocks (non-tradable) 0 0 0
23,300 38,306 74,623
Less : Current Liabilities
Other creditors 688 1,334 1,022
Trade Creditors 0 0 0
Accruals 0 0 0
Short Term Loans 0 0 0
688 1,334 1,022
NET CURRENT ASSETS 22,612 36,972 73,602
NET ASSETS 38,467 54,546 92,753
Financed By :
Share Capital ( Paid-up capital) 1,000 2,000 3,000
Share Premium Reserves 0 0 0
Retained Profit C/fwd 14,483 28,029 61,737
15,483 30,029 64,737
Long term liabilities
Grants 13,333 49,999 31,666
Debenture 0 0 0
Long-term loans 1,000 1,000 1,000
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64. CONFIDENTIAL
SHAREHOLDERS' NETWORTH 29,817 81,028 97,403
8,650 (26,483) (4,650)
Cash Flow Statement
PROJECTIONS
2012 2013 2014
RM RM RM
Cash flows from operating activities
Cash receipts from customers 27,920 39,188 44,608
Cash paid to suppliers 0 0 0
Cash paid to operating expenses & employees (17,172) (24,964) (22,173)
Net cash from/(used in) operating activities 10,748 14,224 22,436
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65. CONFIDENTIAL
Cash flows from investing activities
Investment (5,000) (4,000) (3,000)
Purchase of fixed assets 0 (750) (850)
Research & development (11,370) (4,850) (4,370)
Net cash from/( used in) investing activities (16,370) (9,600) (8,220)
Cash flows from financing activities
Issuance of share capital 1,000 1,000 1,000
Share Premium 0 0 0
Dividend Paid (-) 0 0 0
Long term loan/borrowings (+) 1,000 0 0
Repayment of loan (-) 0 0 0
Grant 20,000 10,000 20,000
Interest income/(expense) (58) (80) (90)
Net cash from/( used in) financing activities 21,942 10,920 20,910
Net increase( decrease) in cash and cash
equivalents 16,320 15,544 35,126
Cash and cash equivalents brought forward 0 16,320 31,864
Cash and cash equivalents carried forward 16,320 31,864 66,990
1. Name of the Company Arbitrage Enterprise
2. Projection Start (year) 2012 2013 2014
Sales (must total to 100%) 100% 100% 100%
-expexted Local Sales (%) 90% 80% 70%
-expected Export Sales (%) 10% 20% 30%
3. Trade Debtors Credit Period (month) 2
4. Trade Creditors Credit Period (month) 0
Other Creditors Credit Period (month) 1
5. Interest Rate (%) 7% 8% 9%
6.
Depreciation Rate (%) refer to FA section
below
7. Amortisation Rate (%) 60%
8. Period covered in 1st. Year (months) 10
9. Fixed Assets Calculation 2012 2013 2014
Annual Acquisition:
House Rental 300 400 500
Web Hosting 350 350 350
Office Equipment 1,000 0 0
65

66. CONFIDENTIAL
Motor Vehicles 6,000 0 0
Others 0 0 0
7,850 750 850
Depreciation: %
House Rental 0% 0 0 0
Web Hosting 0% 0 0 0
Office Equipment 20% 167 200 200
Motor Vehicles 20% 1,000 1,200 1,200
Others 20% 0 0 0
1,200 1,440 1,440
Net Book Value:
House Rental 300 700 1,200
Web Hosting 350 700 1,050
Office Equipment 833 633 433
Motor Vehicles 5,000 3,800 2,600
Others 0 0 0
6,650 5,960 5,370
Grant
First Drawdown 2012 2013 2014
No.of years to amortised 3
Brought fwd 0
Addition 20,000
20,000
P&L (Other Income) 6,667
carried fwd 13,333
Second Drawdown
No.of years to amortised 2
Brought fwd 0 13,333
Addition 10,000
23,333
P&L (Other Income) 0 5,000
carried fwd 0 18,333
Third Drawdown
No.of years to amortised 1
Brought fwd 0 18333 31,666
Addition 20,000 20,000
0 38,333 51,666
P&L (Other Income) 0 6,667 20,000
carried fwd 0 31,666 31,666
66

67. CONFIDENTIAL
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68. CONFIDENTIAL
Expected Profitability Ratios
2012 2013 2014
Gross
profit
percentage
Gross profit x 100%
Sales
100% 100% 100%
Net profit
percentage
Net profit x 100%
Sales
44% 43% 81%
Return on
capital
employed
Operating profi t x 100%
Capital employed
54% 41% 45%
Asset
turnover
Sales x 100%
Total assets less current liabilities
0.9 0.7 0.5
Expected Liquidity Ratios
2012 2013 2014
Current ratio Current assets :1
Current liabilities
33.8 28.7 73.0
Quick ratio/Acid test
ratio
Current assets – Stock :1
Current liabilities
33.8 28.7 73.0
Expected Financing Ratios
2012 2013 2014
Gearing ratio Prior charge capital :1
Total capital
0.9 1.7 0.5
Interest cover PBIT :1
Interest payable
263.0 210.3 414.4
Expected Investment Ratios
2012 2013 2014
68

69. CONFIDENTIAL
Earnings per
share
PAT, pref dividends & extraordinary
items
Ordinary shares
15.28 7.17 11.50
Return on
shareholders’
funds
equity earnings
BV of shareholders’ funds at the year end
99% 48% 53%
Dividend cover equity earnings
equity dividend
19.10 17.93 43.13
ROI PBDIT
Networth
70% 27% 43%
Total Sales 119,350
Total R&D 20,590
Percentage of R&D over Sales 17.25
Tax Loss 247,274
OpEx 24,447
CapEx 4,210
Total Export 24,960
69

70. CONFIDENTI AL
Exit Strategy
We have identified the ways of implementing the exit strategy to payback the short loan
or debenture which Arbitrage Enterprise had received from the outsiders during the
business process. Apart from revenues, there are some other ways which Arbitrage
Enterprise can make to get the fund to achieve the exit strategy. Being burdened by huge
number of loans will make Arbitrage Enterprise facing problems to increase the revenue
and the capital. To overcome this problem, we have identified a several steps which can
help Arbitrage Enterprise to get the capital and implementing the exit strategies:
1) Investment banking firm
2) Venture capital
3) Grant
4) Seasoned equity offering
Investment banking firm is a banking that help Arbitrage Enterprise in acquiring funds.
In addition to acquisition of new funds, investment banking also offers advice for a wide
range of transaction to the company. Arbitrage Enterprise may draw the stock to the public
through the Investment banking firm. This step is more secure and low risk because
Arbitrage Enterprise will sell the stock to the investment bank. Then the investment bank
will sell the stock to the third parties. The advantage is Arbitrage Enterprise will get instant
cash from the investment firm.
Other than that, our company will sell the company’s securities to the local Venture
Capitalist which is the Malaysia Venture Capital Berhad. This local Venture Capitalist will act
as the middleman in order to sell our securities to the public investors. The company will
minimize the risk yet will gain the fund by selling securities effectively.
Grant is fund given by some parties to the organization to help that firm in order to
survive in the marketplace. Arbitrage Enterprise receive RM 50 000 from the MOSTI. This
amount is needed to increase the Arbitrage Enterprise capital. This is important to
Arbitrage Enterprise to expand the business and gain more profit. The source of the
70

71. CONFIDENTI AL
capital for our company will also be getting after 4 years time which is by implementing the
Seasoned Equity Offering (SEO).
Our exit strategies will be explained as below:
The loan getting from SME Bank is RM 50,000.00. The amount that we have to pay back is:
RM 50,000.00 + 30% = RM 65,000.00
We have planning to pay the debt each month for the amount of RM1,084.00
So, in 5 years time we will settle the debt from the SME Bank.
Financial Analysis Criteria
Arbitrage Enterprise raise the capital though grant from government, incentive from
MDEC and loan from bank. These 3 sectors contributes RM 50,000. From this capital,
Arbitrage Enterprise had built the financial plan on how to create the firm revenue. It
includes on how Arbitrage Enterprise markets the funten.com to the customers, promote
the site to the customer and have competitive advantages from the others competitors. In
order to market funten.com, all the expenses such as research and development cost, sells
and marketing expenses and administration expenses will be calculated. Arbitrage
Enterprise will create the strategy on how to reduce the expenses in order to gain more
revenues. From the investor point of view, they will get dividend at least 3 percent annually
and this amount will increase year by year.
71

72. CONFIDENTI AL
72
It will breakeven at 97 units

73. CONFIDENTI AL
Section
7 CONCLUSION
A rapid growth and adoption of internet-based business and social networking has
encouraged Arbitrage Enterprise to engage in this industry. Encompass the consumer to
consumer types of electronic transactions; funten.com acts as an intermediary social
business network which connects the sellers and the potential buyers in interesting and
exciting online marketplace, where all offering are at price RM 10. The website gives an
opportunity for the potential buyers whom seek for the lower price of products and services.
The project size is expected to widen its connectivity with the users nationally by developing
strategic partnership with any Malaysian’s small and medium business that in line with
funten.com mission.
With the unique features of social business networking that enables users to feel
more “personalize” and communicate among their friends, funten.com will offers the new
experience to our users, either directly or indirectly.
In order to differentiate our website from others, Arbitrage Enterprise need to
ensure having several key features that others do not funten.com will be different from
other websites because all the products and services that Arbitrage Enterprise advertise
are only cost the buyers RM 10 which is affordable to everyone. Besides that, the products
and services that posted in funten.com will be very unique and different from the
commercial products and services. The cost for advertisement on our website will also be
one of the cheapest that are available today.
The revenue of the sales product is expected to growth for the first 3 years of the
business operation. Arbitrage Enterprise management is confident that Funten.com can
achieve its aggressive sales forecast, generating total sales of approximately RM 34,900.00
million, RM 38,650.00 and RM 45,800 in years, 2012, 2013 and 2014, respectively. In
addition, Arbitrage Enterprise management has carefully considered its market, potential
customer base and its ability to grow the sales to capture the security system market.
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74. CONFIDENTI AL
Arbitrage Enterprise believes that funten.com will capture the market as online
business concern is rapidly growing and with the hybrid implementation of social networking
among sellers and buyers, market growth and these elements the potential customers
attracted to our service.
Section
74

75. CONFIDENTI AL
APPENDICES
8
Attachment 1.0
75
1. Yahoo.com — a web page search engine & directory
2. Google.com — a web page search engine
3. Youtube.com — a video search engine
4. Live.com — a web page search engine
5. MSN.com — a web page search engine & directory
6. Myspace.com — a human search engine
7. Wikipedia.org — a knowledge search engine & directory
8. Facebook.com — a human search engine
9. Blogger.com — a blog search engine & platform
10. Yahoo.co.jp — a web page search engine & directory
Source: Alexa Global Top 500