Mgm Report

1

1.0 EXECUTIVE SUMMARY

Choocoby, a new in-campus trading company, provides various flavours of snack to

its clients. At beginning of April 15, 2015, Choocoby officiated to start doing the business

and stopped at the month of May 29, 2015. The founder, Nur Shafiqah carried out the

business together with 3 other partners under the supervision of Encik Kamarulzaman Bin

Ismail. The initiation of the company is to gain experience in business, marketing and

enterprising, earn profit from each project that we do and accomplish the assignment for this

semester project.

Choocoby provides a series of the delicious snacks to its clients who include

Universiti Putra Malaysia students, lecturers and staffs. We hold responsibility from products

selection, selling services. The flavours of our products include cornflakes, Oreo, Snickers,

and M&M.

In order to increase our productivity of company, marketing team has used several

channels in promoting our products. Firstly, several social networking were used as a channel

to promote our product. Facebook page and Twitter account was created to introduce our

product. Then a small booth was set up in crowded locations such as cafeteria and faculty to

introduce and sell our products. As a result, it is show that delicious snack has market value

in Universiti Putra Malaysia.

2

Choocoby also applied the concept of AIDA in promoting our products. This concept

is used to develop an effective communication strategy. It covers the following aspects:

1. A (Attention)

Choocoby is focused on something that will entice customers to buy. We will provide

several teaser to customers as a first step before beginning the process of buying and

selling.

2. I (Interest)

Choocoby is focusing on the advantages and benefits of our products to increase the

interest of clients.

3. D (Desire)

Choocoby will also fulfill the wishes of the customer. Our company will conduct our

business online. Therefore, our customers can make bookings at any time and we will

also open stores at the right time with the members of the company as at the weekend.

4. A (Action)

Company try our best to ensure that 3 out of 5 of our customers will buy our products

meet at minimun unit.

3

In terms of the financial, our team has started with an equally shared modal and we do

not take funding from elsewhere. This helps us to establish a more creditable environment

and also to keep the state of our financial status where we can reduce loss to its minimum

level. Profit maximization is what we aim for (40% of total capital), but we actually gain a

little profit from each products we sell and we hope to gain more profit by the quantity that

we sell.

Establishing in the year of 2015 and we hope that our business will be steered on track, gain

reputation, and venture with flying colours. With the aim of carving a niche in Universiti

Putra Malaysia best entrepreneur project series, Choocoby is willing to work out in order to

endeavour in the business.

4

2.0 OBJECTIVES OF BUSINESS REPORT

There are four objectives to be achieved in our business.

1. Problems Identification

To present a complete report for Choocobys business outgoing. It is a report of

business to be carried out comprised financially, marketability, logistic, and publicity.

This report comprised of all the detailed problems.

2. To induce the interest of investors from various fields

The purpose of business report was to make sure of the investors about our company

from various aspects such as finance, promotion, and business operation. Therefore it

managed to attract the attention of investors and even customers by reading through

the report.

3. In-depth evaluation of our business.

From the report, we can identify the strengths and weaknesses of the implemented

strategies. All the findings will be exemplified as a guide for future reference. This

report can be used to prevent the same mistakes from repeating. In addition, the

strength factors were also being determined and investigated. The progression in this

business will be recorded. The reports recorded all the operation and sales processes

which have been conducted successfully.

5

4. As a detailed presentation of our business

Business report, systematic contents that ease the business planners for future

reference, depicted the overall of our business. The report consists of a complete

presentation of our business which includes

6

3.0 COMPANY SUMMARY

3.1 Vision Satement

To provide a high quality products that satisfy and fulfil the needs of dear customers

and create profit at the same time to further maximize the productivity of bussiness

3.2 Mission Statement

1. To deliver quality products and services to our valued customers

2. To gain profit from the business.

3. To inspire good values such as competency, creativity and integrity in every

individual of the company.

4. To understand the world of entrepreneurship.

7

3.3 Company Logo

Choocoby is the name of our snack. It is best to use the brand as our company name

so clients can easily remember and recall the products that we sell. The colour of the logo is

brown because our high selling product is chocolate based snack. Therfore, clients can easily

recognize our type of poducts. The spoon represent that our product is one type of food. The

star shape is served as the background of the spoon. The star is used to delineate that

Choocoby will provide high quality product and fulfill the need of clients.

The logo of Choocoby delineate our company well. The reason for our choice is that it

gives easily understanding and happiness to our customers by buying our products. People

will be attracted to the name of the company if the logo can easily as they will wander the

hiddens behind the words. Whenever, they see our logo, they will think of our company

which provides the best trading services.

8

3.4 Company History

Choocoby company was created on March 15, 2015. The company was created under

the inspiration and supervision of Encik Kamarulzaman Bin Ismail. The founder, Nur

Shafiqah Binti Md Samsuri creates the company together with her 3 partners (Cheah Wai

Seong, Mohd Syafiq Fitri Bin Rosni, Nurul Atiqah Binti Hassan). In Choocoby, we provide

the best products which are capable of bringing happiness and good moments to our valuable

customers. The products are delicious and the packaging are able to attract and capture the

attention of customers. Moreover, the prices of our products affordable to everyone.

3.5 Business Goals

1. To achieve the highest possible profits.

2. To offer the high quality products with reasonable prices.

3. To ensure the greatest quality of products to be on sale.

4. To give the best impression with the service that we provide.

5. Foster good relationships with clients,customers,and partners.

6. Improve performance and good ethics in business.

9

Business Name: Choocoby

Address:

Kolej Sepuluh,

Universiti Putra Malaysia,

43400 Serdang,

Selangor Darul Ehsan.

Contact No: 010 372 3895

Registration Status: Partnership

Registration Date: March 15, 2015

Types of Business:

Trading

Service

Product: Snacks

Modal: RM 70.00 x 4 person = RM 280.00

Business Hours: April 20, 2015 May 15, 2015

10

4.0 ASPECT OF BUSINESS ADMIN AND MANAGEMENT

4.1 Organization Chart

CEO

Nur Shafiqah Binti

Md Samsuri

SECRETARY

Cheah Wai Seong

TREASURER

Mohd Syafiq Fitri Bin Rosni

SALE MANAGER

Nurul Atiqah Binti Hassan

11

4.2 Biodata and Hierachy of Authority

CEO

Full Name : Nur Shafiqah Binti Md Samsuri

NRIC : 920815 04 5122

Birthday : August 15, 1992

Sex : Female

Age : 23

Address : 101, Jalan Koop Cuepacs 2, Taman Cuepacs, 43200 Cheras, Selangor.

Status : Single

Academic : Bac. Deg of Chemical Engineering

Skill : Fluent in English and Bahasa Malaysia, good in communication skill and

creative

Experience : Various Leadership Experience

Job Scope : CEO

12

Secretary

Full Name : Cheah Wai Seong

NRIC : 910429 08 5477

Birthday : April 29, 1991

Sex : Male

Age : 24

Address : 30, Hala Kledang 2, Taman Kledang, 31450 Menglembu, Perak.

Status : Single


Skill : Excellent in paperwork tasks

Experience : Promoter

Job Scope : Secretary

13

Treasurer

Full Name : Muhammad Syafiq Fitri Bin Rosli

NRIC : 920529 02 6123

Birthday : May 29, 1992

Sex : Male

Age : 23

Address : No 79, taman Fajar Bakri, 84200 Muar, Johor

Status : Single


Skill : Good in music and honest


Job Scope : Treasurer

14

Sale Manager

Full Name : Nurul Atiqah bt Hassan

NRIC : 920903 09 5138

Birthday : September 3, 1992

Sex : Female

Age : 23

Address : Pangsapuri Sri Murni, 80100 Johor Bahru, Johor.

Status : Single


Skill : Financial Management and soft skill


Job Scope : Sale Manager

15

4.3 Portfolio of Management

Since there are only 4 people in this team, we do not have adequate manpower, which

leads to a situation. Hence, a person would have to take up more than one task. An effective

distribution of work load has to be done so that our business sales could done systematically

and successfully.

Our team leader is Nur Shafiqah Binti Md Samsuri. Her responsibility is to guide the

team to achieve the objectives of our business. She is chosen to be the team leader is because

she possesses various leadership experience in the past. Beside that, she also has good

communication skills and is able to lead team members well.

Our secretary is Cheah Wai Seong. He has many experiences in administrative and

management work. Therfore, he is chosen to be our secretary. He is responsible in preparing

important procedural documents that are needed to get the approval from Division of Student

Affair and other business-related applciations.

Muhammad Syafiq Fitri Bin Rosli is elected as our treasurer. He is held accountable

and responsible any business financial matters, since he possesses some financial

management experiences in the past when he helped our in his accounting family business.

16

In the sales department, Nurul Atiqah Binti Hassan have a certain past experience

which involve financial management, this has become handy when it comes to handling plans

so that our sales could be done effectively. Therefore, she is elected as sale manager. The

experinces that she possess can become handy when it comes to handling plans so that our

sales could be done effectively. The main objective of sale department is to minimize the cost

or budget of our business, while our profits are being maximized.

Even though each different member has different responsibilities in their repsective

departments, yer we all strive all for the same goal that is the success of our business. With

solid teamwork and effective communication among team members, we believe that our

business can and will be able to be executed well.

4.4 Professional Advisor

Professional advice from experienced entrepreneur is very important especially from

those who really know their way in the world of business and entrepreneurship and also had

faced various obstacles when executing their business. And so, we had sought numerous

advices from seniors and various experienced lecturers. For example, we are lucky to have

Encik Kamarulzaman Bin Ismail, our lecturer for the course Basic Entrepreneurship, who had

given our team members lots of advices regarding the set up of our business since the very

first day we started our business plan. And so, from time to time we would seek advices so

that we could constantly improve our sales and business strategies.

17

Furthermore, our members, who are in charge of the sales department, have also

asked for professional business advices from our supplier. As the result, the suppliers had

generously recommended some selling fast products that have lower cost prices. Other than

that, we have also found a supplier that is able to proivde good quality snack according to our

customers desire and choice. Other than that, we also sought advices from the people such as

family members of some of the team members, which currently have their very own well-

established business.

18

5.0 BUSINESS OPERATION ASPECT

5.1 Introduction of Products

Choocoby Company is selling the chocolate based snack. The reasons for selling

snack as our main product is because customers are able to enjoy the delicious snack with

reasonable price.

The products are mainly obtained from the suppliers in Selangor. From the supplier in

Selangor, Choocoby obtained high quality snacks. The snacks have different flavours. For

example, the flavours that we sold are M&M, cornflake, Oreo and Snickers. Different

flavours of snack can provide more choices to the customers. Customers can buy more than

one flavours of our snack since the snacks that we sold are delicious. The products we sold

are aiming to target different ethnic group. The products are suitable to all races because it is

halal. From this, Choocoby hopes to sell products which relates to our clients lives.

Therefore, people in Universiti Putra Malaysia do not need to go far to search for their

favourite snack but they can actually obtain them in Universiti Putra Malaysia itself.

Finally, the CEO of Choocoby has a contact of a trustable supplier in Selangor. The

specialty of this supplier is that they provide many flavours of the snack. Choocoby expect

some of the people in Universiti Putra Malaysia will have unique preferences. Therefore,

Choocoby gives our client a chance to get their desired flavours of the snacks by selling

various flavours of products

19

5.2 Process and Preparation

The process and preparation of products are divided into two parts mainly the quality

control part and the inventory control part.

Firstly, the sale manager, Nurul Atiqah searched the snack via internet. She did some

survey about delicious food that can attarct the appedice of the customers. Initially, Nurul

Atiqah suggested several type of snacks to become our main products. Quality is assured as

they compare the pricing in each different suppliers. Meanwhile, our secretary, Cheah Wai

Seong went around Universiti Putra Malaysia to survey the students about the favourite food.

At the end, we decided to sell chocolated based-product because most of the customers like to

eat chocolate. In addition, the price of the choocoby sncaks is reasonable. Therefore, we can

provide high quality snacks with reasonable price. After all the snacks had been brought

according to the survey of our members, the treasurer, Muhammad Syafiq Fitri will make

sure that all the items brought tallies with the cash flow.

Before sales, stock check was done so that it tallies with the current amount of stock.

Prices were also determined compared to the code of the products set by the CEO of the

company and agreed by the members. Items such as plastic bags and money change was also

prepared before the sales start in the premise.

During the sales, team member are trying to promote the sales to anyone nearby our

premise. All the money and sales will be handled by the same person assigned so that there

will be no confusion. In the carnival, a booth was rented and the money was accounted in

financial report.

20

After the sales, the stocks are rechecked by the CFO and all the balance and profit of

the sale are handed to the treasurer Any broken stocks will be reported to the sales department

for record keeping. The stocks will be kept in the safe place in the College room under the

supervision of the secretary.

5.3 Insurance and Security Issues

Insurance is crucial when it comes to reducing the loss imposed to the buyers. In order

to increase the credibility to the buyers, we will provide exchange of products if customers

found that snacks that they bought is expired. However, products are not refundable in the

form of cash. The replacement will be done for the items of same price or lower immediately.

Basically, we will try our best to deliver goods with the best quality to our valued customers.

In order to protect our quality of items to be sold, security will also be imposed. The

goods will be kept in a safe place where our members will constantly keep an eye on it such

as in the members hostel rooms. We will also make sure the goods are in good condition

before selling to customers. This is to prevent the reputation of our company become low.

Our members will be given certain amount of products to sell the products.. We will make

sure all the members are involved in doing the business.

For every expired of products, we will make a report to the suppliers. Due to a good

relationship between us and the suppliers, they will surely exchange the broken goods with

the new ones.

21

5.4 Business Premises and Location

Choosing a suitable location to start the bussiness is essential so that sales could be

done more effectively. After having a discussion among our group members, we had

identified two venues that are suitable to run our business, which are Kompleks Akademik A

(KAA) and Foyer Kolej Sepuluh/Kolej Sebelas. After comparing the pros and cons between

these venues, we all agreed to run our booth at Foyer Kolej Sepuluh / Kolej Sebelas

Kolej Sepuluh and Kolej Sebelas are chosen because it satisfies all the criteria that we

needed. Firstly, the members of the group know most of the students in 10th and 11th

colleges. Since the students are mostly from our faculty, it is very likely for them to deliver

the products. It is also easier to convince our friends to buy our products as a proof of

friendship. Secondly, we can store and acquire our goods easily. The goods are stored in the

college, so it is very convenient to bring the stuff and deliver to the customers. Thirdly, a

good relationship between friends and members in colleges can be strengthened. The

Choocoby Facebook profile is used to promote our products to other colleges instead of

Kolej Sepuluh and Kolej Sebelas.

Publicity is very important to our project because a good publicity allows our business

to attract more friends. Poster is one of the ways to promote our project. Pasing posters on the

booth during the carnival can attract people and let people understand our main products. All

in all, with the aid of our posters over faculty and colleges, it does help us to promote our

project to all students effectively.

22

To encourage more people to know our business, we have planned several other ways

to boost our project. We can rely on other methods such as Facebook, SMS, and E-mails.

Lastly, we also bring along the products with us during the lessons. We are promoting

our products to people and tell others in face-to-face regarding our business. It was done

around the faculty of engineering and colleges. We choose these places as there are many

acquaintances. It is easier to inform to the person that we kow than a total stranger. Plus, there

is a continual stream of people at cafeterias during lunch hour. So the probability of them

buying our stuff would be significantly higher after the promotion.

To summarize, we will run our project in Kolej Sepuluh and Kolej Sebelas. Then,

posters as a way of publicity will be pasted in faculty, colelge as well as food court. Next,

flyers distribution wil be run at the hot-spot and during peak hour at the cafeteria.

23

5.5 Map and Directory

24

5.6 Duty Schedule

Our team member are dutied everyday. Once we received oreder from customers, the

nearest team member will deliver our products to the customres. Of course, the other group

members also can go for help when the certain members was not around that area.

At the first week of semester 2 of 2014/2015, the lecture for the course Basic

Entrepreneurship (MGM3180) had started. Our lecturer is Encik Kamarulzaman Bin Ismail.

Introduction to all the students and lecturer had been carried out. Discussion of basic business

plan also been carried out.

At the first 3 weeks, we have discussed about the products that we are selling. We also

dicussed the way to carry out our business. Then we prepare to submit out business plan

report to our lecturer. During these weeks, we had decided the name of our business, the

organisation chart, vision, mission and the logo of our business.

At the week 4 until week 7, we had decided several important aspects of our business.

We need to find selling items source and we also need to decide the place where the business

conducted. After the place was discussed, the target customer needed to identify. The

earnings is estimated and the way of promotion is determined. All of these are recorded in a

report and then submitted to the lecturer, as the business plan report.

25

The marketing activity was started at week 8. Before starting the bussiness, we need

to figure out the problem we would have faced. We need to suggest the most strategic place to

carry out the business and the others aspects in order to make our business more successful.

After the planning, we started to prepare our selling items. We got our selling item from

Selangor. Promotion has been carried out before the business and ended when the business

terminated.

We started our business at week 8 until all the products were sold out. The location of

our business is Kolej Sepuluh and Kolej Sebelas. Not only direct selling, we also open for

ordering from other colleges as we had created a facebook page. The customers can buy their

favourite flavors. We will deliver to the online customer.

After the termination of the business, we started to prepare our financial report. We

also made a discussion to prepare our final report of Choocoby which have to be submitted

on week 13. The earnings will be evenly distributed to every member of the group. This is

what we have done for whole semester for our business, Choocoby.

26

6.0 MARKETING

6.1 Market Analysis

The market analysis is divided into four parts, which are seasonal variation,

competitors, potential strategic allies and SWOT analysis.

6.1.1 Seasonal Variation

The analysis is conducted by our sales group, Choocoby specifically to study on

how different seasons can affect our sales later. Season variation can be defined as the time

period would be very favorable and suitable to sell our product so as to make sure that our

product could get a good response from our customers, mainly from our university students.

Research and survey has been conducted before we even plan and start up our business. We

have determined that our food product that we will sell is attractive and different from others.

Our company, the Choocoby is operated in various strategic locations like college room

and cafes which normally would be crowded with many students.

During the sale, we can clearly see that there are certain particular items that were the

favorite of our customers due to the latest trend. Therefore, we can conclude that seasonal

variation does play an important part in our sales.

27

6.1.2 Competitors

The business competitor is also an important element to be analyzed as part of our

marketing analysis. Our main competitor would be other students which are also selling their

respective products or items as part of their project for their subject of Basic Entrepreneurship

too. Even though we do find good competition here, we still do believe that our unique and

especially different food product items would outstand the other products out there. Besides

that, we also will ensure good quality product delivery, while giving the most reasonable and

affordable price to our valued customers.

During the sales period, there was no interference of other group selling the same

product in this particular period. So, we have the upper hand internally. However, we could

not neglect the fact that there were also external competitors that are well known and

developed.

28

6.1.3 Potential Strategic Allies

In order to improve our product selling rates, we can find our potential strategic allies

to help improve. So our potential strategic allies included different clubs from various

faculties throughout the whole university that would normally conduct large events that

attracts many Universiti Putra Malaysia students to participate. And so, we took advantage of

the crowd of the event and given sufficient permission from the university and the organizing

club of the event, we are able to expand our publicities of products and would potentially

increase our sales. For instance, the Chemical Engineering Club, CheSS will organize an

Chemy Dinner which will include all people in the department of Chemical and

Environmental Engineering, so we tried to approach to the Person In-Charge of that event so

that we could possibly be the souvenir supplier of that event. Either way for both sides, its

definitely a win-win situation for CheSS and our company. Moreover, we tried to find

potential strategic allies that will provide us a good opportunity and opening to sell our

products.

However, our requests were mostly rejected as our company has not yet been well

known and trusted by the customers. So, they prefer to buy the souvenirs and items from

well-known shops.

29

6.1.4 SWOT analysis

In addition, the SWOT analysis is used to help us to determine our marketing

strategies. The SWOT stands for Strengths, Weaknesses, Opportunities, and also Threats.

Strengths Quality products.

Well and efficient sales distribution

Online presale

Wide extensive network

Reasonable prices

Our partners have experience in business environment.

Delivery service.

Weaknesses Choocoby is a new company, thus it needs time to develop its

reputation.

Choocoby is an existed business, thus there are many competitors.

Lack of starting funds.

Short business operating hours.

Opportunities Able to get supplier who offer low price and high quality products.

Strategic project location (location with high traffic).

A systematic marketing strategy.

Cooperate with other event organizers.

Provide good services to satisfy every customers.

30

Threats Threat from other groups of MGMs students who might sell the same

products.

Threat of substitute product from other competitors.

The products might not attract many customers.

The business might not gain profit.

31

6.2 Marketing Strategy

6.2.1 Product

Our products mainly comprises of food product item. Since our main target of

customers are the university students who are always stay up for study hence our product is

the most suitable product for them. This is because, student that always stay up always

craving food to make them to still stay up. Besides that, our product also gives our customer

satisfaction when they eat it especially to people who really love chocolate. This is because

our product is mainly build from chocolate flavor with different topping. Our product also

worthy to buy due to their content is full in one jar and it last in longer time even already

open it. Apart from that, our product is easy to bring to eat everywhere due to their medium

size.

6.2.2 Pricing

Our products are also priced at a very considerably affordable and reasonable rate

given that our main customers are merely university students, so its safe to assume that these

students will not be willing and able to spend too much on these. Furthermore, we do give

promotions or lower prices to customers who purchase few items of the same kind.

Moreover, actually we somehow managed to sell our items at quite of a low compared

outside market price. This would be definitely give us an edge since our cost price are low,

therefore we able to profit more from our sales later. However, some of the customers asked

for offer, but it is difficult for us to lower down the price as we only earn low profits.

32

6.2.3 Place

We did our sales in various strategic locations in the university. Sales can be done not

only in different faculties but also in various dorms and colleges throughout the whole

universities. Sales are also targeted in places which normally have a good crowd such as in

cafes, balcony of college and also college event. Initially, we only fix our business location at

college dorm. However, due to not so many student want to buy it if we stay in college dorm,

thus we start to sell our items to our course mates and lecturers instead of just setting in one

location. Besides that, our products also sell in latest carnival.

6.2.4 Promotions

Mainly the publications of our sale are spread through word of mouth especially to

friends. Also flyers are also given out to students when promotions of our sales are done in

certain locations such as in the college event. Posters to introduce our sales and unique

products are pasted in designated places like in college bulletin board. Our promotions are

also publicized through social network like Twitter and Facebook due to the trend now is

more selective addition of buying over the internet , they argued that the time to buy can be

accelerated and simplify the buying process. However, the Facebook page did not receive

expected respond from the crowd. Besides, the flyers and posters also did not receive any

response from the people. Hence, we try to approach people and promote one by one.

33

6.3 Publicity Strategy

Business promotion is an integral part of any businesss success, as it is through

promotion that a business expands its customer and opens new window of opportunity. There

are many ways to promote a business. Our promotion strategies are mostly focus on

advertising. Advertising is the best way let the public to know our company and product. We

created a company logo which based on our company name Choocoby.

Then we designed and printed out some promotion poster. The poster were put on

some hotspot like colleges, faculties, food courts, bus stop, and those places which are

crowded with people as well. We also distributed some flyers at highly-populated area to

attract customers and aware of our products. Not only that, we also set up a booth to promote

create publicity among students especially during certain events like Cultural Night and

entrepreneurship carnival in Universiti Putra Malaysia.

Secondly, internet is one of our promoting tools. We make use the advantages of

internet to promote our business online. Since most of the people have a Facebook account,

we are going to create a Facebook Page to gain public recognition as well. We kept our page

updated with new products and different promotion as well. It is the easiest and fastest way to

promote our business.

Then, we targeted on potential buyers among our friends, family, course mates and

roommates too. This can help to expand our business as networking is an effective form of

business promotion too. We will persuade them to buy our products and it may inspire them

to spread the word about our business.

34

` We choose our company name as Choocoby as it is suited to our products. And it

can be easily understood by the public as well. Our logo creates a brand image for our

company too. We will place our company logo in brochures, poster or even online to gain

popularity.

Other than promoting our products, we gave out promotion like buy five free one

and delivery service. This attracts more customers as well. Besides, our company is running

in 24 hours. Therefore, our customers can choose their favorite topping and we will delivery

it anywhere and anytime they want. This is going to be the best selling point of our company

compared to other competitors which only provide delivery service in limited time.

35

7.0 FINANCIAL ANALYSIS

7.1 Start-up Funding

Being a partnership, each partner has contributed an equal amount of RM 68.00. Thus, the

total owners capital is calculated as below:

Owners capital = RM 70.00 x 4 = RM 280.00

Capital

Investment Total (RM)

Owner 280.00

Investor 0.00

Additional Investment Requirement 0.00

Total Investment 280.00

So, Total Capital = RM 280.00.

36

7.2 Record Expenses

Expenses Quantit

y

Cost per

Unit

(RM)

Total

Cost

(RM)

Variable

Expense

s

Fixed

Expense

s

Expense

s (Cash)

Expense

s (Non-

cash)

Marketing

Cost

Flyers 100 0.02 2.00 / /

Poster 1 25.00 25.00 / /

Rental

Premises 1 5.00 5.00 / /

Product

Cost

Oreo flavor 12 4.50 54.00 / /

M&M

flavor

12 4.50 54.00 / /

Snickers

flavor

12 4.50 54.00 / /

Cornflakes

flavor

12 4.50 54.00 / /

Total 248.00 216.00 32.00 216.00 32.00

37

7.3 Record Sales

Week 8

Product Quantity

Sold (Unit)

Unit

Price

(RM)

Total

Sales

(RM)

Unit Cost

(RM)

Total

Cost

(RM)

Profit

(RM)

Oreo flavor 3 6.50 19.50 4.50 13.50 6.00

M&M flavor 4 6.50 26.00 4.50 18.00 8.00

Snickers

flavor

2 6.50 13.00 4.50 9.00 4.00

Cornflakes

flavor

1 6.50 6.50 4.50 4.50 2.00

Total 10 65.00 45.00 20.00

38

Week 9

Product Quantity

Sold (Unit)

Unit

Price

(RM)

Total

Sales

(RM)

Unit Cost

(RM)

Total

Cost

(RM)

Profit

(RM)

Oreo flavor 5 6.50 32.50 4.50 22.50 10.00

M&M flavor 6 6.50 39.00 4.50 27.00 12.00

Snickers

flavor

3 6.50 19.50 4.50 13.50 6.00

Cornflakes

flavor

3 6.50 19.50 4.50 13.50 6.00

Total 17 110.50 76.50 34.00

Week 10

Product Quantity

Sold (Unit)

Unit

Price

(RM)

Total

Sales

(RM)

Unit Cost

(RM)

Total

Cost

(RM)

Profit

(RM)

Oreo flavor 1 6.50 6.50 4.50 4.50 2.00

M&M flavor 2 6.50 13.00 4.50 9.00 4.00

Snickers

flavor

4 6.50 26.00 4.50 18.00 8.00

Cornflakes

flavor

3 6.50 19.50 4.50 13.50 6.00

Total 10 65.00 45.00 20.00

39

Week 11

Product Quantity

Sold (Unit)

Unit

Price

(RM)

Total

Sales

(RM)

Unit Cost

(RM)

Total

Cost

(RM)

Profit

(RM)

Oreo flavor 3 6.50 19.50 4.50 13.50 6.00

M&M flavor - 6.50 - 4.50 - -

Snickers

flavor

3 6.50 19.50 4.50 13.50 6.00

Cornflakes

flavor

5 6.50 32.50 4.50 22.50 10.00

Total 11 71.50 49.50 22.00

Total Net Sales = RM 65.00 + RM 110.50 + RM 65.00 + RM 71.50

= RM 312.00

Total Cost = RM 45.00 + RM 76.50 + RM 45.00 + RM 49.50

= RM 216.00

Total Profit = RM 20.00 + RM 34.00 + RM 20.00 + RM 22.00

= RM 96.00

40

7.4 Project Balance Sheet

Project Balance Sheet (beginning of business).

Choocoby

Project Balance Sheet

Description RM RM

Assets

Non-current Assets 0.00

Current Assets

Cash 280.00

Total Assets 280.00

Equity and Liabilities

Liability

Current Liability 0.00

Non-current Liability 0.00

Total Liability 0.00

Owners Equity

Capital 280.00

Total Equity 280.00

Total Equity and Liabilities 280.00

41

Project Balance Sheet (closing of business).

Choocoby

Project Balance Sheet

Description RM RM

Assets

Non-current Assets 0.00

Current Assets

Cash 312.00

Total Assets 312.00

Equity and Liabilities

Liability

Current Liability 0.00

Non-current Liability 0.00

Total Liability 0.00

Owners Equity

Capital 280.00

+ Net Profit 32.00

Total Equity 312.00

Total Equity and Liabilities 312.00

42

7.5 Income Statement

Choocoby

Income Statement

Description RM RM

Net Sales

Oreo flavor 78.00

M&M flavor 78.00

Snickers flavor 78.00

Cornflakes flavor 78.00 312.00

(-) Cost of Sales

Oreo flavor 54.00

M&M flavor 54.00

Snickers flavor 54.00

Cornflakes flavor 54.00 (-) 216.00

Gross Profit 96.00

(-) Expenses

Marketing Cost

Flyers 2.00

Poster 25.00

Rental

Premises 5.00 (-) 32.00

Net Profit 64.00

43

7.6 Cash Flow Statement

From Week 8 to Week 11

RM RM

Capital 280.00

Total Sales 312.00

592.00

Expenses (-) 32.00

Cash flow 560.00

592.00

44

7.7 Financial Analysis

7.7.1 Net Profit Margin

=Net Profit

Income 100%

=RM 64.00

RM 312.00 100%

= 20.51%

7.7.2 Breakeven Analysis (Oreo flavor)

=Total FIxed Cost

Unit Sale Price Unit Variable Cost

=RM 54.00

RM 6.50 RM 4.50

27 units

7.7.3 Breakeven Analysis (M&M flavor)

=Total FIxed Cost


=RM 54.00

RM 6.50 RM 4.50

27 units

45

7.7.4 Breakeven Analysis (Snickers flavor)

=Total FIxed Cost


=RM 54.00

RM 6.50 RM 4.50

27 units

7.7.5 Breakeven Analysis (Cornflakes flavor)

=Total FIxed Cost


=RM 54.00

RM 6.50 RM 4.50

27 units

7.7.6 Return on Investment

=Net Profit

Capital 100%

=RM 64.00

RM 280.00 100%

= 22.86%

46

8.0 COMPLICATIONS AND CHALLENGES

8.1 Problems Encountered and Solution

In every business theres bound to be lots of obtacles and challenges throughout the

whole journey or process in not only setting up business but also to ensure the continuous

positive progress and earning of the business. As the saying goes, the beginning is always the

hardest and so we have faced numerous complications especially for the first two weeks in

doing our business. But as times passed, we have learnt from various experiences and

mistakes so as to overcome all the obstacles that is in our way in making a profitable and

successful business.

The key product of our business mainly food product. So, one of the main problems

we had faced is the food item itself. This is due to some people in our college sell the same

product. And so, this had essentially cut the numbers of our potential customers. Hence, when

we had realised this problems, we decided to extend and introduce our business and sales to

our fellow coursemated in classes. Not only that, but we were especially thrilled and pleased

when our lecturers themselves had shown interest in our goods and also supported our

business after they had caught wind of our business from other coursemates. And so, from

that onwards we had not limit our sales to anyone or to be confined to a very certain or

limited areas only, instead we continuously trying to expand our business operations in areas

or locations and acquiantances who has be potential to be our customers and so as to boost

our sales.

47

The second problem we had faced is of the concern of our transportation especially

when it comes to delivery our product to customer outside our business location. This is

because most of our member dont have transportation. Hence, to overcome this problem we

limited delivery service in certain area. If our customer outside our certain area, they have to

by more than five items to get the delivery service from our company.

Furthermore, we had also identified that our sales must be done in a suitable period of

time when not only everyone in the team would have the time to do the businesss sales

together but also the business must be done in suitable time in designated location when there

would be more crowd or in other words, more potential customers at that particular time. For

example, we had our sales introduced to the students by going to their room to sell our

product.

Moreover, initially we had the fear of selling our products in the colleges especially

because we had not the permission and the authorisation letter from the college authorities at

that time yet. However, this problem was immediately solved when we had received the

permission from the administrator of Kolej Sepuluh and Kolej Sebelas

Had not all these problems and obstacles we faced throughout the whole business

sales process being identified and counter, further positive progress in our sales will be rather

quite tough and impossible. However, as the saying goes "practice makes perfect" also with

the solid team work of our fellow enthusiastic team mates and the willingness to learn from

mistakes and past experiences of all, we managed to overcome every complications and

hurdles we faced in progressing our business sales with ease.

48

9.0 ETHICAL CONCERNS

9.1 Gains and Learning

There were countless things that we had learnt in this course. We will outline 6 points

that are significant and beneficial to our entrepreneurship in the future.

9.1.1 Exposure to Entrepreneurship

Throughout the whole learning process in MGM3180, we had learnt some soft skills

and equipped some knowledge as well. In this modernised world, many skills are needed to

become a competent entrepreneur. We have to be willing to risk ourselves through trial and

error in order to bring some creative and innovative ideas to be commercialised. These

aspects are very crucial for an entrepreneur to be recognised by the consumers and the

middlemen as well. Take for an example, variety of product choices were to be chosen by our

customers. We also provided free delivery service to the customers where the location of

delivery must be within our range of delivery such as Kolej Sepuluh and Kolej Sebelas, and

Faculty of Engineering. One of our customers bought and requested us to deliver to them at

12 a.m, where it was delivered successfully. This is because, our running time is 24 hours.

They can order our product event in 3 a.m. because, for us our customer is to precious to

ignored.

49

9.1.2 The Ability to Form a Business Planning

The ability to construct a plan in business is crucial because an organised plan can

save much time and reduce the chance for the plan to backfire. We should start planning our

own business plan as soon as possible once the discussion about the business nature is

finalised among the members. This is because opportunity must be held as early as we can

before it is gone forever.

Although business plan should be done early, we must also not forget to plan carefully

to avoid deficit after running the business. There are a few ways done by our group members

in creating a masterpiece such as:

Gaining more knowledge on our business nature of selling food

Understanding the demography and geography of our business location

Reading up the do and dont in setting up a business

Learning by mistakes from the past entrepreneurs

Sharing their working experience in the past

50

9.1.3 The Importance for having an Alternative Plan

We have actually faced many obstacles throughout our business. There were many

problems that can surface without our expectations. For example, there were not many people

buying our product since they already bought from other people that selling the same product.

So we sometimes brought our products to the class and let our classmates to choose. The

responses are overwhelming as most products somehow match with their likings. Besides, we

also brought it to our department office for sale. The lecturers are very supportive with our

products and decided to buy a few our product.

Other than that, when the products did not sell well in certain days, we will make a

promotion such as Buy 5 Get 1 Free or 10% off to clear our products. Finding an

alternative is based on our creativity because nothing will come to us if we dont alter our

strategy during a bad time.

51

9.1.4 Communication Skills

Communication is very important throughout the whole process of business. It is an

inevitable skill as good communication skills enable us to communicate well, to express

ourselves clearly, to get our ideas across, and to connect with the person to whom we are

speaking, especially our customers and suppliers during the business. Communication can

make the difference between success and failure for a company. Good communication helps

ensure the efficient operation of all levels of an organization. For instance, the sales of

company can be improved if a worker with good communication skills interacts with

customers as he or she can easily persuade them to purchase the products. During the

business, we have built up our confidence to communicate with all kinds of people from

different backgrounds and this can actually improve our communication skills.

52

9.1.5 Business Teamwork

Throughout the whole business, we also built up the business teamwork among our

group members. Business teamwork is important because it enables companies to achieve

their goals quickly and efficiently. Companies set goals and these goals cannot be achieved

by one person. Members of a business need to work as a team. In other words, teamwork is

the collective performance of different individuals skilled at different activities in order to

fulfil a group goal or objective. This can improve the efficiency of a company. For example, a

person who is good in negotiating can contact with the suppliers in order to get the lowest

price for our selling products. Besides, with good business teamwork, all the members can

contribute to solve the problem that we encounter in the business and a solution will be found

in a shorter time. This is because everyone contributes by contributing ideas and different

tasks are assigned to different members. This makes the problem solving process progress

faster.

9.1.6 Honesty and Ethics

Furthermore, we also learned about honesty and ethics in doing business. In real

business world, the key to success is honesty. With capitalize honesty, people will believe in

us and continue to purchase our products. Besides, good reputation can be developed by

doing business with honesty and this can bring unpredictable profits in long term. For

example, we do not sell the products which are not in good conditions. Other than that, we do

not overprice our products as customers might not purchase our products again if they feel

that the product does not worth its price. Besides honesty, we must also work in a

professional manner, thus requiring anyone who we feel satisfied with what we are doing.

53

10.0 SUMMARY

It is a valuable experience for Choocoby in carrying out the business. Carrying our

business might be tiring but the experiences gained are worth. We always push ourselves to

be in great situation. We also gain a lot of knowledge in doing the business. During the sales,

we hold meeting to discuss about our business. In the meeting, each member gives their idea

to improve our method of selling. During the sale, we work together with each other in order

to succeed in our business. Although, we faced some problem in this activity, we are able to

solve the problems by working together. As results, Choocoby has archived its mission by

providing high quality snack with reasonable price.

All the members of Choocoby are willing to work together to carry out the bussiness.

Hence, the business ended with great sucess and smoothly. Moreover, the business admin and

managements seemed to be working functionable as the process of selling was carried out

smoothly. All the members put a lot of efford on it.

In marketing, strategies, members do their best in promoting the products. We also let

the customers to make a phone call to order the products that they wish to buy.

In conducting our business, there are several problems has existed. The main

problems we had faced is some people in our college sell the same product..We decided to

extend and introduce our business and sales to our fellow coursemated in classes. The second

problem we had faced is of the concern of our transportation. To overcome this problem, we

limited delivery service in certain area. If our customer outside our certain area, they have to

by more than five items to get the delivery service from our company.

54

There are many valuable lessons has been learned when carry out the business. We

have improve our communication skills. We also expose to entrepreneurship. In carrying the

business, we learn the ability to form a business planning, work as a team, palnning an

alternative plan, inhibit the value of honest and ethic.

In conclusion, our company Choocoby had done our businesss project well. At the

end, we are able to achieve the mission and vision of our company.

Mgm Report

Documents

Transcript of Mgm Report