Business report complete

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SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN THE DESIGN SCHOOL

FOUNDATION IN NATURAL BUILD ENVIRONMENT NAME: Darren Tan Quan Wen (0322662) Lew Quo Ming (0322884) Michelle Wong (0322362) Tang Ying Jien (0322357)

INTRODUCTION TO BUSINESS (BUS 30104)

FINAL ASSIGNMENT: CHARITY DRIVE

LECTURER: MS. TAY SHIR MEN

SUBMISSION DATE: 14TH DECEMBER 2015

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INDEX

No Content Page 1 Executive Summary 3 2 Objective 4 – 5 3 Target Market 6 4 Competition Analysis 7 – 8 5 Product & Packaging 9 – 11 6 Pricing 12 7 Promotion 13 – 16 8 Sponsors 17 9 Distribution 18 – 19 10 Green Measures 20 - 21 11 Human Resource Planning 22 – 23 12 Evaluation of Result 24 – 26 13 Appendices 27 – 30

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Executive Summary In groups of 4, Foundation in Natural and Built Environments students who took the Introduction to Business module were involved in an annual charity drive. The purpose of this assignment is to raise funds for a charity organization. This gives us an opportunity to run a business venture and also to gain experiences about how a business is run throughout a week. Our team decided to raise funds by selling sweet or desert food and tries to find a sponsor. However we encounter lots of problem during our charity drive, we sold several of products. Which is frozen yogurt, cotton candy, cakes, coffee and meggi mee. Basically we change product every day, due to machinery problem we had for our main product, which is frozen yogurt and cotton candy. All profit will be donated to the Persatuan Penjagaan Kanak-Kanak Cacat Klang Selangor (PPKKCKS), It’s a home fill with of disable children. We chose this charity organizations because the house is in a bad condition and most kids do not have enough material to study. Therefore we want to raised funds to provided them better equipment and facility. A total of RM 3531 was raised by our team.                                              

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Objectives 1 Persatuan Penjagaan Kanak-Kanak Cacat Klang Selangor (PPKKCKS)

 -­‐ 4, Kampung Raja Uda, Lorong Bunga Raya, 42000, Pelabuhan Klang,

Selangor, 42000, Malaysia -­‐ +60 3-3165 4312

The reason we decided to donate to PPKKCKS is because   it’s a home fill with disable children. The house is in a bad condition and most kids do not have enough material to study. Therefore we want to raised funds to provided them better equipment and facility.      2 Professional & Personal Objectives

i. A target of RM 23000 ii. Sales profit of RM 2300 and more to cover up our costs iii. Target sales of products altogether,

154 Frozen Yogurts 10 cottons candy 50 packs of coffee 56 packs of meggi mee 150 cakes

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3 Personal Objectives i. Obtain new skills such as marketing techniques, accounting skills

and planning strategies ii. Strengthen group work/cooperation iii. To gain a memorable experience together

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Target Market

• Students Most students in Taylor’s Lakeside University come early for morning classes due to the limited parking spaces and do not have time for their breakfast. Most of them would usually buy some convenient food such as waffle and snacks from the vending machine. Most stalls in campus sell foods that are packaged, students can just come and buy it and go for their class, which is very convenient for them to do so. Judging by the fact that there are a lot of students would spend their money on luxury stuff such as Starbucks, Chatime etc. We believe that students in Taylor’s University have high spending power.

• Friends We promoted about what we are doing and what we are going to sell on social medias like Facebook, Instagram and Twitter, our friends would know about this charity drive and support us. And because it is easier to communicate with them about our products compare with strangers, therefore it would also be easier to persuade them to buy our products. The purpose of our charity drive is to earn profit in order help our charity organization, so we would emphasize this fact to persuade our friends to support our charity organization. Most of them have normal spending power.

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Competition Analysis Our competitors are of course the other groups in our business class that were also involved in the same charity drive as us, but the two of our main competitors were:

1) Isy Roc’s Group

They were also selling ice cream like us but ours is yogurt, which is more expensive, then theirs. Besides that they also sold different types of toping and different flavours. We were worried that no one would buy our frozen yogurt as we heard quite a number of customers claiming that the other group’s ice cream taste better and its cheaper ● Strengths: Wide varieties of toping and flavour ice cream. ● Weaknesses: Only one product they are selling

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2) Justin’s Group

Pretty sure that this group is the strongest among all and is most of the other group’s competitor. A sausage company sponsored this group. Everyday their booth will be crowded and people were lining up throughout the five days of charity drive. ● Strengths: They did not have to walk around with trays of what they are selling to ask others if they are interested or not, instead, people come over and ask if they are ready to sell. Due to the sausage smells that attracts people. ● Weaknesses: They don’t have much business after lunch hour or breakfast hour. it takes a long time to prepare the food.

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Product & Packaging 1. Frozen Yogurt

Flavours: Original, Corny Flakes, Crunchy Popcorn, Sweet Oreo, Strawberry and Chocolate

2. Cakes Flavours: Green Tea, Tiramisu, Passionate Chocolate, Cheese and Banana

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3. Maggie Mee with Egg

4. Coffee

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5. Roses

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Pricing The following is our price list for the products that we have sold during the charity week. Frozen Yogurt of all flavours are sold at RM8 each cup. The green tea and banana cake is sold at RM9 while tiramisu, cheese and passionate chocolate cake are sold at RM10. Maggie mee with egg is sold at RM5 while without egg is RM4.50 but most of the customers have placed orders with egg. The coffee is sold at RM1 per cup. Finally, the roses are tied up with our charity where you can donate RM5 and above to receive a rose. In other words, the roses are sold at RM5 each. Cost Price

(RM) Selling Price Units Revenue (RM)

Frozen Yogurt

4.50 8.00 154 1232.00

Cake 5.00 9.00 40 360.00 Cake 6.00 10.00 90 900.00 Maggie Mee 2.00 5.00 56 280.00 Coffee 0.50 1.00 27 27.00 Roses 1.00 5.00 10 50.00

Total Revenue (RM): 2849.00

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Promotion We have used several methods to promote our products to the public in order to boost our booth popularity. Our promotion methods are carried out face to face and through social media.

1. Posters We have designed our own posters for each of our products. This is to attract attention from customers and let them know what products we are selling. It is easier to show and explain the products we have to customers with the poster. The poster also comes in handy when promoting our booth through social media such as Facebook, Whatsapp and Email.

2. Promotions We have introduced interesting promotions for our products too. For example, the normal price for a box of cake is RM10 but you will be able to get a second box at RM8. This way, customers can save RM1 for each purchased cake. In the long run, we are also able to sell more cakes even if our profit earned for one cake is lower. We have also tied up the rose with our donation where each RM5 is donated, we will give them a rose for free.

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3. Face to face promotion During charity drive week, we have promoted our booth to customers (students walking by our booth) through face to face promotion. We have approached them and explained about the aim of our charity drive week and convinced them to buy our products.

4. Facebook Promotion We have created a Facebook page called “Cloud Factory” where we have heavily promoted each of our items, give updates on our daily sales and have creative posters. The posts are attractively written so that people will be convinced to approach our booth. All information about the charity drive and our booth is written clearly there.

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5. Lucky Draw We have also promoted our products through a lucky draw game where each person who purchases a box of cake from us would be given a chance to win a free Frozen Yogurt (worth RM8) from our booth. This attracts customers to purchase the cake because they are interested in the free Frozen Yogurt.

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6. Charity / Donation We have also used our charity home, PPKKCKS to promote our items and products too. We promote our items to customers and introduce our charity home to them stating that we are raising funds for these children. This helps boosts our sales because more customers are convinced to purchase items knowing that the money is going to be donated to charity.

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Sponsors a. Approached Sponsors

Our group has approached different sponsors such as “Sim Derby” in hopes of being able to sponsor our team throughout this project. However, we were able to obtain a sponsorship from a company that one of our teammates parent recommended that is “Ultra Dynasty Sdn Bhd”. They were generous enough to sponsor our entire project as they are willing to donate the money to charity. The company was willing to sponsor the amount of RM2, 300 to assist our group for the project.

b. Reasons for Approaching Stated Sponsor As most of our parents have a wide range of contacts and are even closer with some of them. It was easier to approach the sponsor from “Ultra Dynasty Sdn Bhd” as one of the team member’s parent was close to them. The mother of one our teammate aided our group in terms of convincing the sponsor upon the reason for sponsoring our group and how it could assist the charity home that we had chosen.

c. Method of Approaching As there was multiple methods used in obtaining this sponsorship but the main method was by sending emails and also having to call the company. We wanted a face to face meeting however we weren’t able to have it due to the fact that the location of the company is rather far. We were able to have one of our teammate’s parent to meet up with the sponsor with all the documents in hand in hopes to convince them due to the fact that the parent works next to the company. We send multiples email and even a sponsorship letter printed with Taylor’s University name on it. In the end we were extremely grateful upon the generous sponsorship given to us by the company.

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Distribution a. Sales Location

Our stall is located directly in front of the Student Life Centre of Taylor’s University Lakeside Campus and around campus as we carry food around campus to be sold as well.

b. Transportation of Products As the first day of our charity drive, we had to carry the Yogurt Machine from the restaurant known as “Snowy” in the commercial area of Taylor’s University Lakeside Campus. Given that we only had to carry the machine to our stall and also bring along the materials used to make yogurts, we actually did not have much things to bring along. However on the second day, we added cakes to be sold on our stalls. All the cakes were transported form Michelle’s car to campus and placed on our stall. The cakes were all well packaged when we got them as we purchased it from a wholesaler with a lower price. On the third day, as our machine required servicing and all the cakes were sold out, we decided upon selling mee goreng and bought a few packets of it from the nearby AEON Big and brought it the next day. Darren was responsible for bring all of the packets as we stored all of them in his car. The mee goreng that we sold are packaged fresh as soon as we were done cooking with them.

c. Delivery Time As most of our products required some time to make, the time interval for each product to make required a short amount of time as we did not wish to have the customers wait long. The cakes on the other hand requires very minimal time for the customers to obtain it as it is all packaged individually and are ready to be taken on the spot. We also do have a donation box that a few of our members will go around campus along with some of our products in hand to sell or collect donation all over campus.

d. Number of Customers We estimated upon the number of customers based on how much we sold. The total estimation would be at least over 150 customers per day considering that we had customers purchasing multiple products from us including roses.

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e. Other Methods of Ordering We also provide delivery service as long as it is within the campus boundaries. Via phone or social media, customers can contact us to either deliver or to hold on to one of our product for them.

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Green Measure a. Environmentally - Conscious Manner

Given that recycling and protecting the environment is very important, we were strictly concern upon the usage of disposable materials and packaging for this project. One of our objectives in this project is to protect and improve upon the health of environment by reducing usage of non-renewable resources.

b. Environmentally-Friendly Product Packaging Before having taking deal with our suppliers, we first asked them whether their materials used for the product packaging would be disposable so that it does not bring harm to the environment. We wanted to reduce minimal waste created in order to encourage using packaging that is recyclable. The packaging for the mee goreng and cakes for the customers are plastic containers as they are easily disposable and also recyclable. The plastic cups used for drinks as we sold coffee at one point consisted of using recyclable material as well. Reduction in using plastic bag as we only provide plastic bags to customers who requested it. In a way, we are able to reduce the way of disposing non-renewable waste. We also used plastic gloves as to ensure the cleanliness of the product as well as able to recycle it easy.

c. Reduction of Carbon Footprint We reduced the usage of plastic bags for the customers as we only provide upon request form the customer. In addition, we walked around campus to sell our products to people who did not know about our charity drive in front of the student life centre. As our food also do not require refrigeration unlike some stalls who required much usage of electricity for keeping their products.

d. Waste Management The product waste such as plastic containers and cups after being used are to be thrown into the 3R bin which include Reuse, Recycle, and Reduce bins provided all over campus. Customers can easily throw it in and all of these waste will be taken to the recycling centre where they are sorted by type and categorize.

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e. Measures Taken to Reduce Consumption of Resources 1. Our products do not require the usage of much water therefore

reducing water usage. 2. We did our best into minimizing the amount of electricity usage for

all our electrical appliances. 3. Provide plastic bag as requested by customers only

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Human Resource Planning Team Organization Chart

Job Scope Team Member Job Scope

Liew Quo Ming Project Leader, Public Relations (PPKKCKS), Product Dealer, Sponorship Dealer, Product Promoter, Donation Manager, Chief Salesman

Darren Tan Sales Manager, Product Dealer, Marketing Strategist, Sponorship Dealer, Treasurer, Promoter, Customer Servicer, Salesman, Driver

Michelle Wong Accountant, Donation Manager, Promoter, Product Dealer, Customer Servicer, Saleswoman

Tang Ying Jien Stall Manager, Public Relations (PPKKCKS), Poster Designer, Machine Operator, Salesman, Driver

As our group has a clear job scope, we are able to guide ourselves to our respective task and distribute the workload evenly. Each member have their own sets of specific skills so that every field of job scope is able to run smoothly without any mistakes. As the Project Leader, Lew Quo Ming manages all the other members and ensures every member does their part so that the business will run smoothly. As The Sales Manager, Darren Tan make sure that all our sales are in good condition and the profit earn is able to cover up the expenses. As the accountant, Michelle keeps tracks of the money and ensure there is no lost. As the Stall Manager, Ying Jien ensures that the stalls are operable and makes sure the product quality good.

Lew  Quo  Ming  Project  Leader  

Tang  Ying  Jien  Stall  Manager  

Michelle  Wong  Accountant  

Darren  Tan  Sales  Manager  

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Quo Ming and Ying Jien also manage with Public Relations, which ensures that all profit earn are donated to PPKKCKS. Quo Ming and Darren Tan were tasked to get sponsorship to have funding for our business to start operating. Darren and Michelle Wong was in charge of dealing with the profit and losses and manages the money flows while keep the receipt in checked. Lew Quo Ming, Darren Tan and Michelle Wong are tasked to manage the product supplier and make sure that all products and machineries are available and ready to sell. Quo Ming and Michelle Wong keeps track on the donation to confirm we have enough donation to cover up our expenses and target goals. Ying Jien also manages the poster design to ensure customers are able to have a visual view of the product and the pricing.

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Evaluation of result At the end of this project, we managed to achieve more than our target, which is more then RM 2300 consisting our sponsor, sales and donation.

Profit & Loss Statement RM RM Revenue 2849 Net sales 2849 Less: Cost of Good Sold Frozen Yogurt 493 Meggi Mee 56 Cakes 840 (1389) Gross Profit 1460 Add: Sponsor 2300

Donation 354 2531 Adjusted Gross Profit 3991 Less: Operating Expenses Typhoid Injection 260 Machine Rental 200

Total operating expenses (460) Net Sales 3531

Net  ProIit  

Frozen  Yogurt   Coffee   Maggi  Mee   Cakes   Donations   Sponor  

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In the end of the project, we got net sales of RM 3531 by selling Frozen Yogurt, Coffee, Maggi Mee and Cakes. To conclude, it was a very profitable business and we have reach our RM2300 goal. We manage to get back our Typhoid Injection fees and also get some pocket money for ourselves from the profit. During our project, we faced a lot of problems and obstacles. One of our main problems was we had trouble with the machineries. First, we decided to test the cotton candy machine, but on pre-testing the cotton candy machine heater broke, which causes us to have one less product to sell. So, we decided to buy cakes to cover up our expenses and support the sales of the frozen yogurt. On the first day, we reached our target with solely the sales of frozen yogurt and realize we had over purchased the cakes. But all is well when we boosted our sales and managed to sell off the cakes. Our next big obstacle is on the 2nd day of sales when our frozen yogurt machine broken in the evening. We were shocked, as our main source of income is gone. So we quickly decided on what to sell, we then came up with the idea to sell Maggi Mee and coffee, as it is the safest and profitable product we can think of. Things got worse when one of our teammates, Ying Jien was sick with food poisoning and cannot attend on the following day of sales. Even so the rest of the teammates, were still manageable. We also faced problems with the supplier. At first, we had trouble getting an agreement on the pricing of the products. The supplier was trying to get profit from us as they charged us with a very high price for every single product sold and also a high rent for the machineries. But after much consideration, we finally got a deal with a win-win situation. But after that, we had trouble with the cotton candy machine and they charged us with the repair fees of the machine because they were not at the scene when the machine broke and blamed us for breaking the machine. We cannot do anything, as it was partially our fault. However, when the frozen yogurt machine broke, they give us a refund as they were present at the scene and declared that it was their machines own faulty. Although we faced a lot of problems, we came together as a team to solve the problem, this taught us to be calmer when solving a problem and learn how to overcome it. Video link: https://youtu.be/IOi7DS_COSA    

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Appendix    Photos      

Project  Briefing   Sales  Promoting  

Selling  Products   Cakes  (Products)  

Frozen  Yogurt  (Product)  

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Typhoid  Injections  Receipt  

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Sponsorships  Letter    

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 Sales  Receipts  (Random  Picked)