business charity drive report

WARUNG AH BENG FINANCIAL REPORT 1

WARUNG

AH BENG

FINANCIAL REPORT

GROUP MEMBERS: JAMES WONG (0317890)

JACK NG (0317980)

ANNA NEO (0318236)

NURIN (0318596)

KNICK (0317749)


AUGUST 2014 INTAKE (SEM2)

Table of content

CONTENT PAGE 1. SUMMARY/OBJECTIVE 3 2. TARGET MARKET 4 3. COMPETITION ANALYSIS 5 4. PRODUCTS AND PACKAGING 6-7 5. PRICING 8 6. PROMOTION 9-10 7. SPONSORS 11 8. DISTRIBUTION 12 9. GREEN MEASURES 13 10. HUMAN RESOURCE PLANNING 14 11. EVALUATION RESULTS 15-16 12. APPENDIX 17-20 13. CONCLUSION 21


Summary/Objective

The main purpose for this business project is to let us learn about business

management and product marketing in a traditional classroom setting. For

every earning or profit we get will 100% be donated away to charitable

organization.

Kiwanis, which is a globalized organization where people volunteered

dedicated to improve the world one child and one community at a time.

Kiwanis operates in more than 90 countries worldwide through the support of

more than 8000 clubs and 400,000 members. In Malaysia, this organization

serve down-syndrome kids with care by giving them hope.

The reasons why we donate our earnings to Kiwanis is because the kids there

were mostly born handicapped, where they weak in absorbing knowledge like

normal children does. By donating to Kiwanis, they are able to upgrade the

facilities and provide a better service to serve these kids which need extra

attention on them.

We targeted to get RM1, 200 of donations from big companies and corporate

around peninsular Malaysia and we also targeted our sales for RM1, 500, so

that we can get a total amount of RM2, 700 which exceeds our target which is

RM2, 500. The total earnings and profit will be fully donated to Kiwanis.


During the charity drive, we get RM1,778 for the sales revenue and for the

donations we get around RM1, 200.

TARGET MARKET

Since the location for our business is in Taylor’s Lakeside University, the range

for our customers are classified to two types: One, which is students, where it

holds the majority percentage in our location, another one is lecturers and

staffs in the campus which hold a minority percentage in Taylors. The students

and staffs here are mostly Malaysian and the other small group of students and

staffs are from overseas.

Based on the analysis I made, I observed that mostly of the customers would

like to spend more on foods rather than on goods. The reason the staffs,

students and lecturers passed by Student Life center to commercial block is

because they are hungry. So, that’s the main purpose where they seek for food

more than goods and services.

For the investigation of their spending power, we knew that spending a meal in

the commercial block with drinks can cost up to more than RM15, where for

foods we sell per stall the maximum price will be around RM5 per item which

means that you can buy more than 2 to 3 types of food just by visiting the few

stalls in Student Life Center.


Hence, most of the people here are students where they don’t have personal

income to spend on expensive food and beverages. So, mostly of the students

will think about the opportunity cost, where they can choose whether to just

buy one meal from the commercial block or buy a few variety of food from the

stall and have different tastes.

COMPETITION ANALYSIS

The 2 main competitor on field is the stall on the right side (Sue’s Group) and

the other stall on the left side (Yu Jing’s Group).

SUE’S GROUP YU JING’S GROUP

PRODUCTS POPCORN, BROWNIES BROWNIES

SERVICES - PLAYSTATION GAMES

STRENGTH They have nice packaging

for their products and

they display the popcorn

machine as well, which

the color of the machine

attracts customer towards

them. Their Brownies that

taste fantastic which

attract students as well.

They use sound devices like

speakers to attract customers

to approach them. Hence,

their Brownies packaging is

also attractive as well.


VULERABILITIES The two groups mainly focus is on sweet tooth, but they

didn’t find out that, the weather in Campus is very hot and

humid where the foods they sell will lead them to thirst,

and they didn’t have any products that can solve the thirst

of the customer.

PRODUCTS AND PACKAGING

Product 1: Fruits

Description: A mixture of Mango, Guava, Cucumber

and Sengkuang to rejuvenate the droughty throat

with splendid fruit juice.

Package: They are packed in a cup with wrappers on

the top to prevent dust from going in and to keep the

freshness of the fruits, we prepared an ice box for it.

Or in other choice, you can add in Kuah and it turns to

Rojak.


Product 2: Roti Jala with Curry

Description: Roti Jala is made of Flour

and Egg and with the featuring of hot

chicken curry makes it even delicious.

However, you can also eat it with

Durian, but we only prepared chicken

curry.

Package: The curry is separated from

the Roti Jala, so that the freshness of

the Roti Jala can last longer.

Product 3: Coconut Juice.


Description: Fresh Coconut Juice. You can either choose it in a cup, without

flesh or with flesh, or you can even eat and drink it in the coconut shell . Where

there is plenty of coconut to serve you with.

Packaging: The coconut juice will be poured into a cup with our stall logo, if you

order with shell, we will wrap it and place it in a plastic bag to prevent the juice

from leaking out. After you finish drinking it, you can starts to hunt for flesh as

well.

Well, if you look carefully in each food package we prepared, our stall Logo is

stick on each cup and container, so that it will give an impression to the

customer to remember our stall name and how it looks like. Well that may be

our attraction towards the customer, and the outcome is once proved that

regular customer came back every day to purchase our food because our logo

creates a local food feeling for them.

PRICING

PER UNIT COST PRICE (WITHOUT INCLUDING PACKAGING)

PER UNIT SELLING PRICE

COCONUT JUICE RM2 RM4 COCONUT JUICE WITH SHELL

RM2 RM6

ROJAK RM2 RM4 FRUITS RM2 RM3 ROTI JALA RM1 RM5


The table above is the original selling price for the first day, since the price we

used is for market testing. There is some changes in the following days. Like for

the coconut juice in the first day had the worst sales, so we decide to reduce

the price of coconut juice from RM4 to RM3. We decide not to change the price

of roti Jala since it had the best feedback then the other food. So the price of

roti Jala remain the same.

After the changes of the price of the fruits, the fruits turned out to sell faster

than the day before.

PROMOTION

For the first day, we only prepared a poster that is placed on the board, where

it doesn’t seemed attractive due to the sunlight at the back that make the

poster hardly seen. Soon, we found out when customers approached, they

keep asking us what food we are selling and what’s the price of the food we

sell. We lacked of a menu, so we immediately went and make one temporarily

menu and for the next day we prepared a permanent menu board.


POSTER OF OUR STALL

FEAUTURING A BATIK

BACKGROUND

(BACK OF THE STALL)

THE MENU AND LOGO

(FRONT OF THE STALL)


FRONT VIEW OF OUR STALL

Notes: The poster and logo in front of the stall indicates us out from all the

other existing stalls, where it help the students and staffs to know the exact

location of our stall. Of course, we put the information of the charity

organization where all our earnings will be fully donated to them.


SPONSORS

Our targeted sponsors are mostly from big companies and from parents. We

approach as many business corporate as we can to obtain the sponsorship. So,

the main sponsorship that sponsor us is Nam Soon Huat SDN. BHD. and from

Anna and Nurin’s parents as well. We targeted them because they are

someone we know and they also wanted to do some charity as well.

In cash form, Nam Soon Huat SDN.BHD. had sponsored RM200 and from

Anna’s parent we get RM800 and from Nurin’s parents we get another RM200,

so it makes a total of RM1200 donations from sponsorships. As for some of the

foods, James and Nik sponsored as well, like for the coconuts, they sponsored

RM150 each, which is RM300 in total.

Where for Roti Jala, we get sponsorship as well as in cash RM124.

For the Typhoid Vaccine, we also paid for ourselves as a part of sponsorship to

the charity drive. In conclusion, the total sponsorships and donations are

RM1924 in total.

While mostly the sponsorship that we owned are through phone calls and face-

to-face meetings. Of course, when we approach we also brought the

Sponsorship Letter along with us as a proved to them that every money that

they sponsored goes to charity.


DISTRIBUTION

Because of the foods we sold are fruits and coconuts, in a way to keep them

fresh, we had no choice but to wake up in the early morning and prepare

everything before 7a.m. After that, Jack and James will drive to Anna house

and pick up the products and delivered it to the campus (which is the sales

location).

Mostly our food will be well-prepared and packaged, so when the customers

approach, they can get their food straight away. But for the coconut drinks

with shell, we need around 5 minutes time to hack the coconut and beautiful

wrapped up for customers. We minimize the time of hacking coconut to 2

minutes, because we chopped of the husk and the shell of the upper part first,

so when the customer approached, we just hacked one hole on top of the

coconut and it’s well prepared.

Majority of the customers will ignored us if we don’t approach them first. In a

way to gain attention and get a sales or donation done, we approached them

no matter how many people passed by our stalls. We also went everywhere

around campus to sell our products, whenever we saw someone sitting in the

classroom, we will knock the door, and quickly approached them as well.

Some of our customers is our friends, where they give fully support to us by

donating and purchasing our products. The lecturers also give support to us by

purchasing each stall products where we appreciate a lot.


GREEN MEASURES

The products we choose can are made in an environmentally-conscious

manner, why? Because the foods we prepared are mainly fruit. The skin that we

peeled of the fruits can be used as a fertilizer for the plants nearby the house

area. Of course we dig the hole and buried in the soil to prevent insects and

other animals to mess up the area.

The coconut shell had been recycle back to the coconut supplier since they are

experts in supplying and skillful in dealing with the coconuts leftover. So, I

think that we made the right choice by returning the coconut shells back to the

owner.

The packaging we used for the fruits are mainly plastic containers, while

plastics containers is absolutely not environmental friendly at all. But we had

no other choice but use plastic container to keep all our foods. We did told

each customers that they should recycle the containers after finish consuming

our food, so I think it will be alright since the campus has recycle bin

everywhere.

Well, for the first time we use a lot of water because we don’t know where to

store the coconut juice, so we wash quite a lot of containers and all aren’t use

in the end. We solve it by using a proper container to store the juice, so the

following day, we are using the same way to store the juice, so that we doesn’t

have to wash a lot.


HUMAN RESOURCE PLANNING

ORGANIZATIONAL CHART OF WARUNG AH BENG

Note: Although the chart above shows each single people have their own

section to in charge with, but still we work together as a team and helps the

other section that needed help as well.

JAMES

(LEADER AND MARKETING)

KNICK

(IN CHARGE OF COCONUT RELATED

PRODUCTS)

NURIN

(IN CHARGE OF ROTI JALA RELATED PRODUCTS)

ANNA

(IN CHARGE OF FRUITS RELATED PRODUCTS)

JACK

(ACCOUNTANT AND FINANCIAL)


EVALUATION RESULTS

Income Statement of Group A Charity Drive Event

Revenue

Sales $1,778

Less: Cost of Goods Sold $900

Gross Profit $878

Add: Other Revenues $ 1,924

Adjusted Gross Profit $2,802

Less: Operating Expenses

Expenses A $300

Total Operating Expenses $300

Net Profit $2,502

ROTI JALA COCONUT JUICE

(BEFORE) COCONUT JUICE

(AFTER) ROJAK FRUITS COCONUT WITH SHELL

S. Price $5.00 $4.00 $3.00 $4.00 $3.00 $6.00

Units 120 58 127 67 51 24

Rev $600.00 $232.00 $381.00 $268.00 $153.00 $144.00


ROTI JALA

COCONUE JUICE

(BEFORE) COCONUT JUICE

(AFTER) ROJAK FRUITS COCONUT WITH

SHELL

C. Price $1.60 $2.20 $2.20 $2.10 $2.10 $2.20

Units 120 58 127 67 51 24

Rev $192.00 $127.60 $279.40 $140.70 $107.10 $52.80

Based on the report, our Sales is double the COGS, which means we can cover

up the cost of goods sold and earned half of the profit without subtracting the

expenses. Hence, with the larger amount of gross profit earned, we can pay

some small expenses and still get some profit rather than loss.

Also, sponsorship and donation take a big role as based on the income

statement, half of the net profit is from sponsorships and donation. By having a

large amount of donations and sponsorships, it really help us to reduce stress

so that we can be relieved when the real charity event came because half of

the target is reached.

The only thing we did wrong is the pricing of the coconut juice, because for the

first and second day, especially in the morning, we found out that our coconut

juice seems not flavored by the customers, where we faster reduce the price

from RM4 to RM3, but soon we regret, because the profit per cup of coconut

juice is only RMo.80. Hence we cannot raise the price anymore, since a lot of

customers are already used to the price that we reduce, so to avoid any further

comparison, we decided to maintain the RM3 price for coconut juice.

If we can repeat this business project, what we going to change is the strategy

of our business. We are not going to cut, hack, packaging and move everything

just by ourselves but what we can do is to find those shops that already had all

of the food or products we sold well-package and is always ready to be sell.

Although it will cost for a higher price, but at least we can save up our energy

and focus more on promoting our products.


APPPENDIX

1. SPONSORSHIPS LETTER

A.NAM SOON HUAT SDN. BHD.

November 19th, 2014

NG TEIK LENG NAM SOON HUAT SDN.BHD. F1-g1, Pasar Borong Kuala Lumpur, Pusat Bandar Utara, Batu Caves, Selangor, 68100

Dear Mr.Ng, Requesting Sponsorship for Charity Drive Event

We, the students from Taylor’s University Lakeside Campus, are currently involved in a fundraising event as our school project in November 2014.

Our plan is to raise a total of RM2500 via sponsorships and product sales. The fundraising event will be held for a week from 17th to 21st November under the supervision of our lecturer Mr. Chang Jau Ho. All profits earned during the event will be donated to the KIWANIS DOWN-SYNDROME ORGANIZATION, a non-profit organization that provides services which serves and gives fully help to down-syndrome kids.

We are writing today to ask if you would consider donating RM200 to RM300 to help support our event. We believe that your generosity would go a long way towards supporting the organization and their noble cause. If you need more information about our event or have any questions you may contact me at 0173205509. Thank you. Sincerely,


NG WAI KHONG

Charity Drive Event Group Leader

2. RECEIPT – cash receipts for products bought.


3. DONATION RECEIPT FROM KIWANIS DOWN-SYNDROME


VISIT TO KIWANIS


CONCLUSION

To manage a business is not as easy as how it looks like. Those successful

businessman undergo a lot of difficulties before being successful and we can’t

see the pain they overcome until they obtain such huge outcome in their life.

Of course, we learnt two things well doing this charity drive. Firstly, we need to

be optimism when obstacles strikes, we need to rational enough to solve all

the problems we faced with a calm heart. Although sometimes, you will feel

like giving up the whole thing, but we need to have a strong sense of will

power, that you must keep telling yourself to be patient and one day the

success route will be right in front of you.

Secondly, which is luck. We need luck when we start a business, as in a strong

supporter at your back and customers. When you started up a business and a

strong supporter give you a huge amount of modal to manage the company,

everything will be much easier than the other businesses which still struggle in

finding modal for their business. Of course customers are included as well, if

you get to know a bunch loyal customers where they really favorite your

products and continuously purchased from you. Definitely, they will promote

your item to their friends or family.

Although majority of the businesses only have the first aspect but not the

second one, but still we need to manage the business in the proper and legal

way.

business charity drive report

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