Download - Business final report
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SCHOOL OF ARCHITECTURE, BUILDING & DESIGN
Research Unit for Modern Architecture Studies in Southeast Asia
Foundation in Natural and Built Environments (FNBE)
INTRODUCTION TO BUSINESS
[BUS30104]
ASSIGNMENT: CHARITY DRIVE EVENT REPORT
GROUP MEMBERS:
NAME STUDENT ID
ONG SENG PENG 0319016
CHONG YU XUAN 0317950
TAN SHEAU HUI 0319235
YEE ZHEN LI 0319160
LECTURER: MR CHANG JAU HO
SUBMISSION DATE: 30 JANUARY 2015
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No. Content Pages
1. Summary 3
2. Objectives 4
3. Target Market 5
4. Competition Analysis 6
5. Product and Packaging 7
6. Pricing 9
7. Promotion 11
8. Sponsors 12
9. Distribution 13
10. Green Measures 13
11. Human Resource Planning 14
12. Evaluation of Results 16
13. Appendix 18
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Summary
In this final project, we were assigned to do a business charity drive on 19th January
until 23rd January 2015. The main objective is to encourage students to think creatively and
strategically in the course of starting and operating a business as well as to understand the
business management, marketing and finance. Our group consists of 4 members namely Ong
Seng Peng, Yee Zhen Li, Chong Yu Xuan and Tan Sheau Hui. Our products sold in this
charity drive event are fruit products including fruit salads, fruit juices and fresh fruits. The
charity organization that we decided to donate to is SPCA Selangor. Due to the degree
students semester break season, there were limited customers we could approach within the
campus. Hence, we also went out of the campus to gain more sales. Our total net profit
earned is RM1674, with approximately RM650 from the donation.
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Objectives
We have chosen Society for the Prevention of Cruelty to Animals (SPCA) as our
charity organization. Founded in 1958, SPCA is a well-respected and trusted Non-Profit
Organization. The aim of the SPCA is to protect defenseless animals and to alleviate their
suffering. They provide adoption programs, investigation of cruelty reports, humane
education, and assistance to community animal caregivers and run a dedicated, low-cost
neuter clinic. Over the years, the organization has gained tremendous goodwill, recognition
and support from animal lovers all over Malaysia. The reason why we chose this charity
organization is because we want to contribute to the organization’s effort in helping the
homeless animals as well as to stop animal cruelty. We could take this opportunity to raise
animal awareness to the public by providing general information about animal cruelty that
happens every day.
The quantifiable objectives that we want to accomplish during the charity drive event
are getting a target profit of RM2000, with RM 500 for donation and RM 1500 for our sales
units. We set the sales target higher than donation as we assume products sold would tend to
attract more people to support us instead of a donation box.
Video link: https://www.youtube.com/watch?v=VTGeMXc7fbo
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Target Market
Our main target customers are students and lecturers of Taylor’s University and
people who dine at Asia café food court. Students and lecturers would usually help support
charity business operating within the campus because most people who could afford would
like to help a good cause while some of them might have experienced the similar event before.
However, most of the students could not afford to spend much on charity as their allowance
were still need to be relied on parents and were limited. Whereas lecturers who have a stable
average amount of monthly income would allow them to spend more money than students.
As for people dining at the food court, we assume our products would be their choices of
desserts after meals. Their spending power varies as their ages and occupation differs from
one another.
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Competition Analysis
The two main competitors of our business were Ray’s group and Arvind’s group.
Parts of the menu and selling products of these two groups were similar to ours. Ray’s group
was selling fruit cups, fried chicken wings, breads and lemonade. Their fruit cups were
largely similar to the fruit salads we sold. As for Arvind’s group, they were selling cakes,
doughnuts and fruit kebabs with chocolate toppings. The strength of Ray’s group was that
their stall has a wide variety of choices; this will attract more customers than stalls selling
only a few kinds of products. However, their stall was vulnerable in a way that their food
products could not be kept overnight, as it would spoil or go bad easily. Passersby’s would
want to buy their products because they were good in terms of appearance and taste.
Arvind’s group strength was in their chocolate toppings, chocolate is a product liked by most
people and this attract multiple customers. Besides, customers would buy their products
because of the appealing packaging and the appearance of the food. Their group faced the
same problems as Ray’s group and an additional problem which is their chocolate could
attract flies.
Who are they Ray Arvind
Product Fried chicken wings,
lemonade, fruit cup, breads
Chocolate mug, fruit kebab,
donut and cakes with chocolate
toppings
Strength Wide variety of choice Chocolate topping products
Vulnerabilities Product cannot be kept
overnight
Chocolate attracts flies,
product cannot be kept
overnight
Why would customers buy
from them
Products looks and taste good Product looks good, good
packaging
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Product and packaging
After discussions, we decided to sell fruit salads, fruit juices, mandarin oranges and
also some fresh fruits during this charity event. There are 3 options for the fruit salads which
are yoghurt salad, mango salad and mix fruits salad.
Our fruit salads menu:
Mango salad: Mix fruits salad: Yoghurt salad:
Mangoes cut into pieces
and mixed with mango
puddings.
The mix fruits salad has
orange juice as its sauce.
Mix fruits in this salad
include Fuji apple, green
apple, pineapple, grape and
raisin.
Same as mix fruits salad,
with yogurt put on the
top of it.
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Other products:
Green apples and Fuji Apples Mandarin oranges
We sold apples by numbers while the mandarin oranges were packed with 3 in each packet.
Some of the customers might not enjoy eating the fresh fruits, juicing may be another
option for fruit product. Therefore we started to add fruit juices into our menu on the third
day of the business charity drive. The freshly made juices are packed with nutrients. As fruits
are juiced, the liquids are separated from the fiber, resulting in a concentrated blend of
flavour and colour. These nutrients are quickly assimilated since our body does not have to
separate out of the fiber. Drinking fruit juices can reduce the risk of cancer, boost our
immune system, remove toxins from our body, aid digestion and help us lose weight.
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For the packaging, our products were packed in transparent cups and plastic bags. By
using these packaging, it adds a sense of sleek minimalism while allowing consumers to
actually see your product before buying it. Being able to see the product makes consumers
trust the products more.
Video link: https://www.youtube.com/watch?v=iz010cxvxsc
Pricing
Before the week of charity drive, we started to test on selling our products, which
were mainly fruits salads. We made 3 different types of fruits salads (yoghurt, mix fruits and
mango pudding) by ourselves so that we could get the lowest possible cost price. The average
cost price was RM2.00 and we decided to sell them all at RM5 to earn at least double the cost
prices. The sale testing result was not as good as predicted hence we had made more variety
of fruit products in the following days to achieve our profit target.
Other than fruit salads, we also had fresh fruits and fruit juices sold at our booth
during the charity drive week. Fresh fruits were bought in boxes. The calculated cost prices
and selling prices are shown in the table below.
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No. Product Cost Price (RM) Selling Price (RM)
1. Yoghurt Fruit Salad 1.20 5.00
2. Mix Fruits Salad 2.50 5.00
3. Mango Pudding Salad 2.30 6.00
4. Mango Juice 2.00 5.00
5. Pineapple Juice 1.50 5.00
6. Apple Juice 1.00 3.00
7. Mandarin Orange 2.00 5.00
8. Fuji Apple 1.55 3.00
9. Green Apple 1.00 2.00
For most of our products, the selling prices were set double the cost price, which were
the normal prices sold in markets. We did not take risk by setting high prices as fruits could
not keep long. Normal market prices ensured the sales amount and we could guarantee
products freshness for the customers by refilling new stocks from time to time.
Other sales strategies include walking around campus and some other areas outside
campus to approach more customers. We shared the purpose and message of our charity
event and SPCA Selangor to obtain more sales and donations. This contributed a lot to our
final profit earned throughout the event.
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Promotion
Our main marketing message is to let people know that we are raising fund for SPCA
Selangor to help them continue fighting for the welfare of animals. Therefore, we have
included SPCA Selangor logo into our poster and donation box design. Since some of our
fruits were sold at slightly more expensive prices compared to the normal markets, we have
to adopt this strategy to put the focus on the charity so that people will be more willing to buy
products from us as they see the profits earned is to be donated to charity organization.
Our Poster:
Our 2 main approaches to promote our products are: 1st through the poster, we placed the
poster at our booth to let the passersby know what we are selling and 2nd is through one-to-
one promotion to people around and outside campus. During our charity drive week, there
were very few people within campus area because many degree students were still in holiday.
Therefore, there were less people who stopped at our booth to buy our products. Seeing this
scenario, we decided not to waste too much effort to do printing promotion such as fliers as it
is not effective and it causes resources wastage. Instead, we adopt “walk around” in SS 15
area strategy to approach people. In our opinion, this approach is way more effective than
using poster to promote our products.
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Video link: https://www.youtube.com/watch?v=5r6BdVO88HI
Sponsors
At first, we had approached some big companies and fruit suppliers by sending
sponsorship letter and by telephone calls. The companies we chose were mainly businesses
selling fruits such as MBG Fruits Supply Sdn Bhd, which could be our product suppliers if
any of them were willing to sponsor. However, our requests were being ignored.
Seeing the situation was not at our side, we then approached some individuals closed
to us, mainly our parents and relatives. These approaches were done using phone calls and
face-to-face proposal. In the end, we managed to obtain some sponsors in the form of cash.
Table below shows the sponsors summary.
No. Individuals Sponsor Form and Amount
1 Chiew Cheu Yun Cash of RM200
2 Chong Sau Min Cash of RM200
3 Tan Kim Chooi Cash of RM200
4 Yee Hon Chuen Cash of RM200
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Distribution
The main transportation of our group is car. The car is supplied by one of our member,
Chong Yu Xuan. He is responsible in getting the products to campus. The products were
transported by his car to campus on Monday and Tuesday. We used the same means of
transportation to deliver the products to our sales location which are Asia Café food court and
Taylor’s collage Subang Jaya. Our products are packaged and prepared beforehand. In this
way, the customers can get the product instantly without waiting. We have effectively
reached approximately 340 customers using these methods of delivering.
Green measure
Our chosen products are not made in an environmentally - conscious manner. To
minimize its hazardous effect, we actually use the plastic cups to accomplish many tasks,
instead of to be used only once. For example, we use plastic cups for not only fruit juice but
also fruit cups. This reduces our budget and the need for storage. Our product packaging are
reusable.
To reduce carbon footprint during the distribution stage, we had reduce the usage of
electricity when running this charity event. We will only use electricity for the juicer when
we were selling fresh juice. In order to promote our products, we walk around the campus to
seek for customers instead of giving out the flyers which can cause the wastage of paper and
increases of budget.
The way of managing our product’s wastes after use or consumption is compost the
fruit scraps which break down quickly and turn them into rich, nutritious soil that can be used
to nourish the garden.
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During the charity event, we turned the appliances off at the plug point when they
were not in use to reduce the consumption of electricity as left on standby can still draw
about 20% or more of normal electricity used. To minimize the usage of water, we rinse fruits
in a pan of clean water.
Human Resource Planning
We distributed our job scope as the organizational chart below:
Ong Seng Peng (The Group Leader)
Job Scope:
-Responsible for multimedia such as
editing videos and taking pictures.
-Compilation of report.
Tan Sheau Hui (The Accountant)
Job Scope:
-Responsible for all financial record.
-Control and manage budget.
Yee Zhen Li (The Chief)
Job Scope:
-Make sure the quality of the product is
good.
Chong Yu Xuan (The Executive)
Job Scope:
-Make sure the group has enough stock
and get products from supplier.
-Responsible for transportation issue.
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Besides the job scope above, all group members are also responsible to help planning
on promotion strategies to raise our sales amount as much as possible. As Zhen Li needs to
prepare the food for selling, she will need to stay at the stall and Sheau Hui will assist her in
preparing the food. Seng Peng and Yu Xuan will be the main promoters who walk around the
campus to sell the products. Yu Xuan also needs to fetch group members outside to sell the
products when necessary. When the sales end on that day, Sheau Hui will update the whole
group about sales revenue.
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Evaluation of Results
At the end of this project, we managed to earn a net profit of RM1674 by adding the
sales profit and donations we had received.
Income Statement of Group A Charity Drive Event
Revenue
Sales
$1,153
Less: Cost of Goods Sold $561
Gross Profit $592
Add: Other Revenues $ 1,448
Adjusted Gross Profit $2,040
Less: Operating Expenses
Typhoid Injection $250
Stock loss $116
Total Operating Expenses $326
Net Profit $1,674
After the whole week of charity event, we had done some evaluation on our sales and
all the strategies we had implemented. There are some reasons why we did not achieve an
excellent outcome in terms of the sales profit.
The first problem that we realized was that we did not organize and delegate the jobs
well. Other than that, we did not have a plan B set in mind when the sales went down after
the first day. At first, we struggled to gain more donations to cover up the sales but ended up
having an imbalance amount between the both. On the following days, we managed to make
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a variety of new products out of the goods we had. Only after that our sales revenues slowly
increased and approached the target.
There were also some good strategies that we had done during the business charity
event. Not only selling in the campus, we went out to other campuses and some nearby food
courts and shop lots area to obtain more sales as well as donations.
All in all, what we had learnt from this project was the business management process
in a practical way, which include to plan, to organize, to lead and to control. Even starting a
small business charity event was not an easy task. Lastly, if we were given a chance to repeat
this event, we would improve on our organization of work for each member and always have
another backup plan in mind in case the sales went wrong or any circumstances occur.
Video link: https://www.youtube.com/watch?v=-zVRE9P9yDY
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Appendix
i. Payments to suppliers
No. Date Supplier Payment (RM)
1 17/1/2015 Aeon Co. Bandar Sunway 14.60
2 17/1/2015 Cold Storage Sunway Pyramid 5.00
3 17/1/2015 Perniagaan Tai Ong Jaya 23.60
4 17/1/2015 Pasar Maluri *receipt was unavailable
9.80
5 18/1/2015 KTY Trading 389.00
6 19/1/2015 KTY Trading 230.00
7 20/1/2015 Daiso Japan, Sunway Pyramid 5.00
Total 677.00