EXECUTIVE SUMMARY

The Venture and Its Industry

Introduction

Fadirul Arowana Koi Sdn Bhd (FAK) will provide hard to find tropical fish to

aquarist who do not have access to these fish through local pet stores. FAK will

ship live fish to its customers’ doors anywhere in Malaysia within one to two

days. AK will also provide fish to tropical fish retailers within the local area. AK

will provide convenience and variety not found in the traditional tropical fish

selling industry. The company specialized in breeding the Arowana Species

throughout the region and successful company in fish breeding of Arowana.

The Product

Fadirul Arowana Koi Sdn Bhd will provide rare tropical fish from the family of

Arowana .These fish are known for their beauty appearance and interesting luck

that this fish will give to the owner.

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Taiwan’s Problem

Research has shown that fish keeping is the second most popular hobby in

Taiwan. Our company conservatively estimate that by the end of this year there

will be increasingly numbers of the hobbyist in fish keeping. In Taiwan there are

lack of species Arowana in this country unlike Malaysia that have a numerous

Arowana species. Fish keeper in Taiwan demand more species from this unique

fish and we think that if we global our product to Taiwan we have an opportunity

to be success as the leader of company that provide a variety of species of this

fish. Besides that, in Taiwan some of the most beautiful and interesting Arowana

cannot be found in retail shop in Taiwan. Furthermore, the current online fish

sellers in Taiwan do not have any background and care requirements information

for the fish that they sell.

Our Solution

Fadirul Arowana Koi Sdn Bhd will target two market segments within the fish

hobbyist industry. These are direct online sales to tropical fish collectors and fish

retailers in the company’s local area in Taiwan . Our largest market segment will

be fish keeper who live in Taiwan who are ‘craving’ for unique species and

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variety of Arowana fish. Besides that, we think that by providing a comprehensive

sites, we expects to create a one-stop experience that will encourage the .

The Entrepreneur

Fadirul Anuar Bin Muhammad Niksan

Mr.Fadirul Anuar started his first business as selling aquarium at Kuala

Lumpur.He was a partner in a venture exporting unique aquarium to Southeast Asia

Region. Since then Mr.Fadirul had change its business main activity which is selling

Arowana Fish in Malaysia where he earn his reputation across the country.Mr Fadirul

had a Degree In Accounting from University Of Kuala Lumpur which make him a rich of

knowledge in business .Mr. Fadirul wanted to globalized Its products to Taiwan, as they

are high demands of Arowana Fish in that country. He has used his time when he

completing degree to refine the skills required to ensure the smooth operation of his

new environment in Taiwan.

The Board of Advisors

Mr. Zuel Osman

Mr.Zuel Osman owns several business throughout Asia Region and most of his

successful business is in Taiwan. His contacts and expertise in setting up businesses

and seeking funding have made him a crucial member of the Board of Advisors.

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Additionally, due to his well-known knowledge Mr Zuel brings a modernized ideology to

Taiwan.He is excited about the potential of being part of another winning business

oppurtinity such as Fadirul Arowana Koi Sdn Bhd.

The Management Team

Ahmad Faiz Bin Omar

Mr.Ahmad has over 15 years of experience in both the Malaysia and Taiwan,

leading project Arowana Fish Farming and marketing. With his experience and

exposure to the Taiwan market, Mr.Ahmad is confident that he would efficiently manage

the company. He is excited about the opportunity to move back to the Taiwan to aid

companies in doing business the way they should.

Mohd Aziem Bin Rosli

Mr.Aziem has several years of experience working in the marketing departments

of large consumer goods companies. With the beginning of her career based in

Taiwan,he know how marketing departments are run in the Taiwan.He has successfully

applied the knowledge he gained from previous experience as high performer at the

company he currently works for in Taiwan.Living in Taiwan enable he to learn about

doing business in Taiwan .

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The Market

A SNASPSHOT

Businesses

• Arowana Fish retail shop in Taiwan

• Entrepreneur that thinks Arowana as luck for their businesses

Consumers

• Hobbyist of fish keeping

• Increasing numbers of fan in Arowana fish in Taiwan.

The Bigger Picture

In interview conducted with executive assistants and secretaries at small

and large corporations in Arowana fish farming ,the majority expressed that they

would probably or definitely use our products so that’s they have a variety of

Arowana Fish species .

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Further emphasis will be placed on executive assistants, secretaries and

retail fish in Taiwan because it has been proven that this group is more likely to

be into innovations in this type of industry.

Included in this group would be hobbyist and individuals who like to own

new and variety of species of Arowana Fish.

Call for Action

The Fadirul Arowana Koi has driven and capabilities to become the leading

company in Arowana Fish supplies industry in Taiwan because of its fresh and

innovative approach. The detailed business proposal presents our step by step process

for ensuring the financial success of your investment.

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ANALYSIS OF INTERNATIONAL BUSINESS SITUATION

A. Economic Analysis of Taiwan

1. Economic System

Taiwan economy is one of the most open, and thus competitive,

markets in the world. Taiwan has a developed capitalist economy that ranks

as the 19th- largest in the world by purchasing power parity (PPP), ranks as

18th in the world by gross domestic product (GDP) at purchasing power

parity per capita (person) and 24th in nominal GDP of investment and foreign

trade by the Republic of China (ROC) government, which commonly referred

to as Taiwan. In keeping with this trend, most large government-owned

banks and industrial firms have been privatized.

The economy of Taiwan is best described as a mixed economy.

Although the country strongly advocates free-market policies and

practices, this has come hand-in-hand with strong government

intervention as well, particularly in macroeconomic management and

major factors of production such as land, labour and capital resources.

Oddly enough, both the free market and the state have a high degree of

influence on the economy. As urban culture continues to influence and

inspire Taiwan, we believe that these set trends in fish keeping will strike a

lot of attention in the Taiwan market.

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2. Government

Global businesses will find it advantageous to site their

headquarters in Singapore. Strong trade and investment makes Taiwan

the most competitive Asian country and the world’s easiest place to do

business. By situating their international HQs here, companies benefit

from Taiwan network office over 50 comprehensive Double Taxation

Avoidance Agreements. They also gain from Taiwan many free trade

agreements and the Investment Guarantee Agreements. Companies can

always rely on protection of their ideas and innovations through Taiwan

rigorous enforcement of its strong intellectual property laws.

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3. Trade Laws

Although Taiwan has a free market system, there are a few trade

regulations currently in effect. The retail trade policies have a few key

features:

Import Tariffs

Trade Barriers

Import Requirements and Documentation

U.S. Export Controls

Temporary Entry

Labeling and Marking Requirements

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Prohibited and Restricted Imports

B. Trade Area and Cultural Analysis

When advertising, it is important to know your target market and how to

reach them. Because our target market has such a wide age range and a

middle - class income, we will be marketing primarily in Taiwan.

1. Geographic and Demographics

The population in Taiwan was estimated in December 2013 at

23,373,517, spread across a total land area of 35,980 km², making it

the sixteenth most densely populated country in the world with a

population density of 646 people per km². The official national

language is Mandarin, although a majority also speak Taiwanese (dialect

of Min Nan; a Southern Fujian language) and Hakka. Japanese speakers

are becoming rare as the elderly generation who lived under Japanese

rule are dying out. Aboriginal languages are gradually becoming extinct as

the aborigines have become acculturated despite a program by the ROC

government to preserve the languages.

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2. Analysis of Potential Location

We will be starting off exclusively online for the first year, potentially

branching out later into brick-and-mortar stores. In terms of and

advertisements, we will use visual channels such as fliers, business

cards, online ads. Leaving much of the promotion to our specialty

programs mentioned in the promotional outlines below. In terms of

competition, there is not much to offer an affordable and high quality

line of merchandise as Online Store.

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Description Of the Business

Proposed Organization

Fadirul Arowana Koi will be run as a private limited company under

Owner, Fadirul Anuar Bin Muhammad Niksan . Because it is such a big

business, a private limited company is advantageous a limited company is

one of the most common forms of business entity in Taiwan and may be

limited by shares or guarantees. Where its members’ liability is limited to any

amount unpaid, on its shares, it is known to be limited by shares, and where

its members’ liability is limited to the contribution undertaken, it is known as a

company limited by guarantee.

Start-up Steps to Form Fadirul Arowana Koi.

Register as a private limited company.

Begin to develop websites and park the domains:

www.onlinestore.com.sg

Hire staff.

Rent a warehouse,office and location of fish breeding in Taiwan.

Begin to order base amounts of customer needed.

Publish the sites and become active

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Proposed Staffing:

1 Owner/Chief Operations and Marketing Officer – Mr.Leng (Taiwan

Resident) –

Oversees all promotional activities within the company. Is the “face” of

the company, and manages all day-to-day operations as well as the

overall direction of Fadirul Arowana Koi.

1 Chief Financial and Implementation Officer – Mr.Syamsul (Malaysia) –

Oversees the company’s finances; is the head of accounting, and is in

charge of handling Human Resources problems and implementing

Online Store’s business practices in the Singapore setting.

1 Logistics Manager – Manages the logistics departments of reception

and distribution. Oversees the logistics workforce.

2 Quality Assurance Associates of Fish – One each in assuring the

quality of the goods when receiving and distributing; reports to Logistics

Manager. Keeps inventory to make sure there is no discrepancy. Reports

inventory and loss to Accounting.

15 Logistics Team members – 10 work in receiving shipments and taking

inventory; reports inventory to QA Associates, 5 work on merchandising

and distribution. Assist in promotional activities should the need arise.

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2 Web Designers – 1 each in charge of updating and maintaining either

www.onlinestore.com.sg .Updates online inventory and manages online

promotions.

2 Accountants – keep track of the company’s finances; expense, income,

wages, profits, etc. and reports them to the CFIO. Files taxes and

necessary paperwork.

We shall hire a legal consultant on a per-need basis to minimize

expenses.

Our Solution for Taiwan Market Problem.

Fadirul Arowana Koi Sdn Bhd will target two market segments within the fish

hobbyist industry. These are direct online sales to tropical fish collectors and fish

retailers in the company’s local area in Taiwan . Our largest market segment will

be fish keeper who live in Taiwan who are ‘craving’ for unique species and

variety of Arowana fish. Besides that, we think that by providing a comprehensive

sites, we expects to create a one-stop experience that will encourage the .

Critical Success Factors

Fadirul Arowana Koi Sdn Bhd most important objectives are.

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Concentrating on operational excellence as a core competency by

maintaining the highest quality standards at the lowest operational

costs.

Find a fast, reliable shipping services.

Maintaining constantly updated and original product lines and

communicating about them throughout our catalog and web sites.

Quickly and reliably deliver the fish to customers

Develop a strong reputation within the fish keeping community

Ensure that all large search engines link to our sites

Mission Statements

Fadirul Arowana Koi Sdn Bhd will provide hard to find tropical dragon fish

(arowana/kelisa ) to aquarist who do not have access to these fish through

local pet stores. Up to 15 species separate dragon species (arowana) will

be bred by us, in addition we will ship live fish to its customer’s doors

anywhere in the Taiwan within one to two days. We also will provide fish

to tropical fish retailers located far from breeding center in Taiwan. We

also will provide convenience and variety not found in the traditional

tropical fish selling industry in Taiwan.

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The Business Model

MARKETING

The target market is split into two distinct groups : Hobbyist and new customer .

Special emphasis will be placed on forward thinking businesses that want to do

business like those in more developed countries because they tend to understand the

cost savings of an efficient ordering process.To reduce marketing costs, the farming of

Arowana Fish will be located in Taiwan with a great environment surrounding and

basically use the same method of farming likes in Malaysia .When Arowana Fish are

locate in Taiwan the cost can be cut off in term of ordering and purchasing of Arowana

Fish.

A more traditional advertising approach will be used to reach the customer in

Taiwan and an elaborate marketing campaign will be used to introduce the company

and the products it offers. Fadirul Arowana Koi products will initially only be found in

catalogs and online . In our company, customers Is always king, thus customer can go

directly to farming places to select the type of fish that they are wanted with cheap price.

OPERATIONS

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Fadirul Arowana Koi will be organized in Taiwan with retail and Arowana Farming

will be located in there by using the same procedure to breed the fish in Taiwan as

there are same weather with Malaysia it will be more efficiently of business

activity.Through an advanced sourcing model ,the buyers at FAK will be faced with a

myriad of in house and outsource decisions,with the majority of our products coming

from Malaysia which unique species of fish are coming from there with a variety of

Arowana Fish from Afirca due to its products and export quality ,growth and competitive

pricing.

INFORMATION SYSTEM

There are several information systems that must be in operation in order for

Fadirul Arowana Koi to run efficiently. These system include customer order processing,

inventory management, accounting and sales representative monitoring, and basic

software requirements. All of these system can be purchased as one package through

an enterprise resource planning system.

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COMPETITOR , INDUSTRY AND CONSUMER ANALYSIS

Products

Fadirul Arowana Koi will provide rare tropical fish from the family of

Arowana with unique species that only can be found in South East.  These fish

are known for their colorful appearence and interesting and aggressive behavior. 

The fish will be sold as juveniles, ranging in length from one to four inches.  As

adults some of these species can grow to almost two feet in length, the average

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adult will be around eight to ten inches long.  The shipping of adult sized cichlids

is impractical due to their size

Competitive Comparison

There are other businesses online that offer tropical fish and some common

Arowana.  The important difference between those businesses and Fadirul

Arowana Koi is that we will have the less common Arowana that the other sites

do not offer.

The current online fish sellers do not have any background and care

requirements information for the fish that they sell.  If a customer is looking to

purchase a particular fish online, they may have to go to one site to read up on

the care and behavior of the fish that they are interested in purchasing, and then

go to a different site to actually purchase the fish. Fadirul Arowana Koi will offer

both information on the species we carry and the ability to order the researched

fish without having to go to another website.

Market Analysis Summary

Fadirul Arowana Koi largest market segment will be Internet users who live in the

Taiwan and cannot reach our retailer.  Other potential customers include tropical

fish retailers and walk-in customers.  Fish keeping is the second most popular

hobby (behind photography) in the Taiwan

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We estimate that by the year 2014 there will be approximately two million Internet

users who live in the continental Taiwan and own an aquarium.  This is a very

conservative estimate.  We estimate that 5% (350,000) of these users will view

our site in one year's time and that 2.5% (8,750) of those potential customers will

actually buy fish.

Market Segmentation

Internet customers: the majority of our customers will be Internet users. 

Research estimates that this segment consists of seven million Internet users.

Tropical Arowana retailers: these customers consist of six types of Arowana

shops within 100 miles our business.  While these customers are few they will

buy considerably more fish per order than Internet customers.

Market Needs

Tropical fish enthusiasts are on the Internet looking for information on particular

species and places to obtain them.  Most people do not have access to retail fish

shops that regularly carry a large number of different Arowana species.  Some of

the most beautiful and interesting Arowana cannot be found in these shops at

all. Fadirul Arowna Koi will provide these hard-to-find species to hobbyists.

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Retail fish shops do not have access to the species that customers may ask for

and Fadirul Arowana provides.  Fadirul Arowana Koi will sell our fish to retail

shops within 100 miles of the breeding center.  The fish will be sold to the shops

at wholesale prices.

Competition and Buying Patterns

Competition in the online fish-selling industry is based on customer satisfaction. 

If the ordered fish arrives as advertised and in good health the customer is

satisfied.  If a business can consistently provide customer satisfaction through

quality product and quick service the consumer will become loyal and regard

product price as secondary in importance.

Strategy and Implementation Summary

Fadirul Arowana Koi will market to Arowana fish hobbyists who are looking for

hard to find Arowana species.  We will sell our product primarily over the Internet

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to customers within the Taiwan.  These customers are looking for interesting and

colorful examples of Arowana species that are not available in their local fish

shop.

Our strategy is to offer one-stop shopping for rare and unusual cichlids via the

Internet.  Customers will be able to look through pages of information on a

particular cichlid species and then purchase the fish.

Competitive Edge

Our competitive edge will be our site design, on-site product supply, and wide

variety within the Arowana family.

Sales Forecast

Our sales forecast assumes no change in costs or prices, which is a reasonable

assumption for the last few years.

We expect a jump in sales in 2005 due to increased maturity of our breeding stock.  We

expect our sales to increase moderately in 2006.

Our sales will level off in the latter part of the first year due to our sales reaching

maximum breeding capacity.  Capacity will increase with time.

We expect the product line to change with our customers’ needs and desires.

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We expect the product line to change with our customers’ needs and desires.

Proposed Strategies

1. Proposed Pricing Policies

Because we are a Malaysian business operating in Taiwan , we will

accept both Malaysian Ringgit and Taiwanese Dollar or USD. Our costs

are relatively low due to operating exclusively online; we have cut many

of the expenses of running a brick-and-mortar store such as rent,

utilities, displays, and additional sales staff. Since the majority of our

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competition is indirect, we will have to worry less about competing with

them and more about staying unique. However, to market our goods in

Taiwan, we will markup our products average of 140% above

wholesale, 30% higher, to cover our transportation fees and taxes.

These prices, however, will remain much lower than similar goods from

foreign companies who offer luxurious products for the very wealthy,

and a bit higher.

PLANNED FINANCING

A. Projected Income Statement

Fadirul Arowana Koi Sdn Bhd

Income Statement

For the Year Ended June 30, 2014

TWD

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Sales 1,500,000

Cost of Goods Sold (840,000)

Gross Profit on Sales 660,000

Operating Expenses

Promotional Costs (150,000)

Fish Breeding Centre (40,000)

Other Expenses And Losses

Interest Expenses (5,700)

Income Before Income Tax 464,300

Income Tax (139,266)

Net Income 325,034

B. Projected Balance Sheet

Fadirul Arowana Koi Sdn Bhd

Balance Sheet

For the Year Ended June 30, 2014

TWD

Assets

Cash 325,034

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Inventory 15,000

Website 1,220

TOTAL ASSETS 341,254

Liabilities

Notes Payable 71,508.08

Interest Payable 5,216.88

Total Liabilities 76,724.96

Owner’s Equity 264,529.04

TOTAL LIABILITIES AND

EQUITY

341,254

Planned Growth of Business

After starting up with a bank loan of $100,000 TWD, with an annual

interest rate of 6.59% we expect to make monthly payments of $3069.00

and pay off the loan in full within 36 months. We will use the $325,034 of

net profit to be split to have 25% go towards end-of-year bonuses to all the

employees, and 75% to go towards company growth and start-up capital

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for a brick-and-mortar Online Store location on capital of Singapore. With

the Taiwan open market expecting to triple within the next few years and

the 80% growth seen by other online store, we expect sales and profits for

Fadirul Arowana Koi at least triple to $1,000,000 annual net profit in the

next three years.

BIBLIOGRAPHY

http://www.alibaba.com/countrysearch/TW/fish-arowana.html

http://en.wikipedia.org/wiki/Arowana

http://en.wikipedia.org/wiki/Economy_of_Taiwan

http://www.ait.org.tw/en/doing-business-in-taiwan.html

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