final business plan
TRANSCRIPT
Business Plan 2014-2015
Sponsored By
Table of Contents
Executive Summary 1
Mission Statement and Objectives 2
The Executive Team 3
Our Product 6
Production 7
Marketing 9
Table of Contents
13 Human Resources
15 Information Technology
19 Finance
22 Health, Safety and Environment
23 Risk Assessment and Conclusion
24
Appendix
Eau Co is a Junior Achievement company created by a group of 21 driven high school students
in the pursuit of creating a profitable and environmentally responsible product. We’re
determined to enter the market as a group of business leaders in all areas of entrepreneurship,
and through our relentless teamwork and exceptional business strategy we’ll use our product,
Ascention, to rise above our competition. At Eau Co, our vision is to freshen up your world. We’re
aiming to do this through unconventional means: we’re not going to be setting the new fashion
trends, change the music you listen to or altering the way you look at yourself in the mirror. We’re
going to suggest that scent is the new movement in the pursuit of better living, and we’re eager
to assure you that Ascention will bring a new aspect of joy to your life.
Ascention is a multi-purpose fragrance spray created for all aspects of everyday life. With a
variety of scents uniquely compiled using a special blend of essential oils, our product is 100%
made with natural materials. Unlike conventional perfume sprays or air fresheners, Ascention’s
competitive advantage lies in its doubled value for fulfilling the purpose of both types of scent
products; our unique mixture can be used in the enhancement of personal hygiene in addition
to covering up unwanted odors.
Our Information Technology department enables all our members to exchange information with
each other using online technology as well as communicate with potential customers through
the use of social media and our website. Our IT team is committed to make our company stand
out in terms of our corporate image.
Our Production team has done contacted suppliers and done extensive research in purchasing
only the best quality materials for the creation of Ascention. With a carefully thought out
procedure for the production of our product and a number of quality checks throughout the
process, we’ve ensured that every bottle of Ascention that reaches the market reflects our best
efforts and the excellence that we’re looking to achieve with our brand.
Our Finance department is highly trained in the area of mathematics. Through extensive
research and the utilization of graphs and charts, the Finance department has ensured that the
price for our product is able to maximize profits while keeping costs at a minimum. Money is a
crucial aspect of Eau Co. success and our finance team has weighed the risks versus the rewards
in order to guarantee our companies overall prosperity.
Collaboration is vital to the continual growth of the company. At Eau Co., we value the need for
a positive and cohesive spirit in order to maintain a strong sense of unity. Our Human Resources
department aims to provide an atmosphere that is enjoyable for the team members to grow
and learn during the process. The formation of a strong tie through extensive team building and
celebration of achievement will definitely allow us to move forward as a team.
Eau Co. is proud to be a part of the Junior Achievement in aim to inspire and prepare young
entrepreneurs who are venturing into the business realm. Our practice of ethical and
environmentally conscious business will continue to influence the members of community. Our
team of 21 dedicated, passionate students will continuously strive in order to demonstrate
limitless potential in the business world that is full of opportunity and possibilities.
Executive Summary
1
Vision
Eau Co. strives to create the best experience for our consumers, ranging from our customer
service to the quality of the product. Eau Co. aims to provide the ultimate experience to
improving lifestyle through healthy means. In order to demonstrate our emphasis placed upon
safety and the sanitary of environment, the production process of our multi-purpose fragrance
spray is strictly monitored and all necessary equipment regarding sanitary issues will be applied
and enforced.
Goals and Objectives
The irreplaceable Junior Achievement experience that motivated many of us to take our
first step in the business path allows us to collaborate and work together in creating this
company. In order to treasure, and at the same time exploit, this priceless opportunity, we
have set our primary objective for this program year as to learn and develop our business
skills through real life applications, as creating and operating a company at a young age
will definitely help us gather valuable experiences for our lifelong business venture.
At Eau Co, we strive to maintain an outstanding attendance record that will accurately
reflect our commitments to the company. In order to achieve this, the team determined a
goal of 90% attendance rate for the duration of the program. Dedication and passion are
a few of the values that we, as a company, embrace as a collective ideal. It is essential
for all members to preside at all meetings unless a legitimate excuse is provided for the
absence. Because we all value the importance of team spirit, it is crucial for everyone to
take part of every meeting as each person holds important responsibilities within the
company.
Eau Co. aims to provide a safe and healthy product for our customers. It is through our
rigorous production procedures and safety precautions that our product meets the quality
control regulations. Our primary goal is to have zero return and zero complaints towards
our product. This will continue to be our driving force as the company grows. We aim to
provide a memorable, unique experience for each and every one of our customers.
Our key motivation and objective as a company is to win Junior Achievement Company
of the Year for 2014-2015. We have approached this goal through the creation of a
product that is unique within the Calgary community by conducting researches regarding
popular trends in the world and the improvements upon the basic creation to integrate
this purposeful spray into our own city. With confidence in our product and the potential it
can possess, we aim to achieve a Return on Investment of 300% for our initial investment.
To achieve this, we have set our sales goal to 300 units with 20 expected sales for each
member of the company and the rest through trade shows and other events. As a
company, we strive to succeed and are determined to present an exceptional report to
our shareholders at the end of the year.
2
Mission Statement & Objectives
“Our mission is to provide our customers with a modern, leisurely, and environmentally
sustainable lifestyle with each and every spray!”
The Executive Team
Cyrus Tung-President Grade 12, Henry Wise Wood High School
Cyrus Tung is a Grade 12 student attending Henry Wise Wood.
He is a driven hardworking individual who plans efficiently and
accurately when finishing tasks. This is currently his third year
participating in the Company Program as well as he is an
Ambassador representing Junior Achievement of Southern
Alberta. For the past 2 years, he and his company had been
placed one of the 'Top 5 Companies' as well as 'Top 3 VP of IT'
of the year. Cyrus is a very serious and committed individual
when it comes to sports and school work - such as Basketball,
Track and Field, Volleyball and Badminton. Junior Achievement
is no different. Ever since Cyrus had entered into high school, he
had been given many opportunities in becoming a stronger
person; mentally and physically. He had been involved with the
Student's Council, Sports Medicine - one of the head trainers at
Henry Wise Wood, and many other extracurricular activities that
make his leadership skills grow. He believes that his networking
and leadership skills will be able to help utilize Eau Co. to their
maximum potential in becoming a strong and successful team.
Johnny Zou-VP of IT Grade 11, Western Canada High School
3
Johnny is a Grade 11 Full IB student at Western Canada High
School. Ever since he was young, Johnny has been interested in
technology. His interest led him to take part in many
technological courses at select universities, including the DEEP
(Davinci Engineering Enrichment) Program at the University Of
Toronto. At school, Johnny takes part in numerous clubs such as
yearbook and debate, where he has learned all about
formatting and speaking. Through his past experience with
technology and website design, Johnny hopes he is able to
lead the Information Technology department as they present
Eau Co in a professional and appealing way.
The Executive Team
Julia Zhang-VP of Marketing Grade 12, Henry Wise Wood High School
Julia is a determined, hard-working individual who values the
goals of her team. She is very active in all aspects of music,
sports and volunteering which has given her the skills of
interacting with a wide range of people. Her experience in the
professional world has given her an understanding teamwork
and also discipline. Julia’s passion for business has allowed her
to quickly learn the responsibilities of marketing, despite this
being her first year in the Company Program. Julia hopes to
use her experience and knowledge to make Eau Co. a
prosperous and successful company.
4
Jessica Ye-VP of Production Grade 11, Western Canada High School
Jessica is a Grade 11 student at Western Canada High School.
As an active member involved in clubs and fine arts program,
such activities have contributed to her current interests and
hobbies. Arts and crafts have always been one of her leisure
pursuits growing up, leading to the application of her
familiarity with hand-crafted goods to start her own business at
the age of 12. Being a naturally positive and hard-working
individual, she will give Eau Co. the insight that it needs to
promise yet another successful year.
The Executive Team
Jeff Zhou-VP of Finance Grade 10, Western Canada High School
Rachel Poon-VP of Human Resources Grade 12, Western Canada High School
Jeffrey is a student at Western Canada High School. Although he
is only in Grade 10, Jeffrey is extremely dedicated and
passionate about his role as the VP of Finance. Since he was a
child, Jeffrey has had a genuine passion for everything related to
math, and this has stayed with him for his entire life. As a student
of the International Baccalaureate program, Jeffrey has strong
time-management and organizational skills, making him an
effective team-player and leader.
Rachel is a Grade 12 student at Western Canada High School.
This is her second year in the Junior Achievement program as the
VP of Human Resources. She has a passion for working with
others and bringing individuals together to achieve a common
goal. Through her many years of playing the piano and her love
of running, she understands hard work and commitment in order
to be a part of creating an innovative and respected company.
As she graduates this year, she looks to work in the health field in
order to give back to the great community she comes from.
5
Ascention is a multi-purpose fragrance spray created for
all aspects of everyday life. With a variety of scents
uniquely compiled using a special blend of essential oils,
our product is 100% made with natural materials.
Scents
Apple Cinnamon
Jasmine
Mixed Berries
Citrus
Lavender
Grapefruit
Cedar Wood
Unlike conventional perfume sprays or air fresheners, Ascention’s competitive advantage lies in
its doubled value for fulfilling the purpose of both types of scent products; our unique mixture
can be used in the enhancement of personal hygiene in addition to covering up unwanted
odors.
Our Product
6
Production Department
Production Quality Control and Training
Each Ascention spray is created through an assembly line combining the efforts of all company
members working under the production division. Each member will have a specific portion that
they will carry out throughout the meeting, and tasks that are more time-consuming will have
more members on the job. (ex: 3 members fill up the empty bottles with water, which is passed
along to the 5 members in charge of adding essential oils). An experienced representative will
go over each step of the assembly line in detail to all company members, in the chance that
someone who is absent during production will have a knowledgeable member to replace their
role. An appointed quality control director will survey portions of the assembly line to ensure
that the steps of the procedure are followed correctly, such as using too much essential oil or
tying a tag to a bottle that has a scent differing from the scent stated on the tag. The finalized
product is verified free of defects one last time and a label with the statement "Made by a JA
Company" is applied to the back of the tag. The product is now ready to be distributed to our
customers for their personal use.
Step 1 - Adding Water
A 100mL aluminum spray bottle is filled up with distilled water a little
below the neck of the bottle using a funnel. Depending on the
scent and type of oil selected, amount of oil added will vary. The
two types of oils utilized in the creation of this product are essential
oils and fragrance oils. Essential oils are obtained by extraction from
a plant or other source, and typically carry a more intense aroma
of the source that it was extracted from.
Step 2 - Adding Essential Oils
A 100mL aluminum spray bottle is filled up with distilled water a little
below the neck of the bottle using a funnel. Depending on the
scent and type of oil selected, amount of oil added will vary. The
two types of oils utilized in the creation of this product are essential
oils and fragrance oils. Essential oils are obtained by extraction from
a plant or other source, and typically carry a more intense aroma
of the source that it was extracted from.
7
Production Department
Step 2 - Tag
A specific color of cardstock paper and ribbon is aesthetically
selected for each scent. Using a gift tag puncher, the gift tag is
obtained by sliding the piece of paper inside the puncher and
pressing down on the handle. Then, another hole is created using a
single hole punch to punch a hole approximately 1cm from the
curved edge to act as a site for tying the tag to the bottle. Using a
white or colored specialized gel pen, a member will neatly copy
"Ascention", the product name, followed by the scent name and
"Eau Co.", the company name.
Step 3 - Ribbon
While the tag is set aside to dry to prevent any smudging, a piece
of 1/8" ribbon is cut to a length of 20cm and snipped at a 45
degree edge. Linger the edge of the ribbon to the rim of a candle
flame for about 3 seconds and allow it to cool for 30 seconds. This
process is called heat-sealing and prevents fabric ribbons from
fraying and separating where it is cut. Insert the ribbon through the
hole in the gift tag and tie the ribbon around the neck of a pre-
filled aluminum spray bottle using a shoe-lace knot to form a bow.
Be aware that the scent stated on the tag should correspond to
the actual fragrance inside the bottle.
Risk Assessment
Safety warning: The production of Ascention sprays involves the use of a candle fire and
may pose as a potential danger to the health and safety of members of Eau Co. To
minimize the chances of a fire hazard, use caution when using a lighter and only allow the
candle to be lit and stay lit on a table clear of flammable objects at a 1m radius, such as
paper or essential oils. In case of a fire, all members have been made aware of evacuation
procedures as well as the location of fire extinguishers throughout the floor.
Product Development
Our spray fragrance product has the advantage of interchangeably using different
blends of essential oils to create new scents while maintaining its purpose of covering up
unwanted odors. Throughout the entire year, research and customer feedback will guide
our product development to open up new opportunities with festive scents, gift sets, and
aesthetically-appealing packaging. Though our current suppliers are reliable, we will
always be on the look-out for chances to raise our product quality and customer
satisfaction while reaching sales goals.
8
Marketing Department
Marketing
Sales Goals
At Eau Co. we strive to provide high quality to our customers. In order to be successful we
established challenging but attainable goals. Our main focus is to ensure the complete
satisfaction of all our customers.
Currently, we have set our sales goal to be 300 units. This would allow us to gain revenue of
$1500, and a profit of about $800. However due to sales being very successful in the first two
weeks, about 40 units, we hope to increase our target objective. Each individual must sell
approximately 20 units in order for us to achieve our goal. To encourage shareholders to sell,
we have decided as a team to use commission. This gives each person the incentive to
persevere and work hard to play a role in benefiting the company.
Objectives
Another one of our main objectives is to ensure that our product and company is well
known. In order to excel, our product must be recognized in the marketplace. To promote or
product, we will be selling in many different venues such as office building lobbies and
Farmer’s Markets. Setting up various social networking sites and combining them with each
individual’s unique connections will allow our product to gain recognition.
In conjunction with excelling in sales, we also aim to give back 25% to the community
through our chosen charity, The Alberta Children’s Hospital Foundation, as well as another
25% towards Junior Achievement of Southern Alberta. With our product, we aim to create a
refreshed and renewed atmosphere.
9
Marketing Department
Marketing Approach
Product
Our product, Ascention, allows for the air around us to be revitalized. With our use of all-
natural essential oils, we provide a sanctuary in which the atmosphere is improved. By also
using aluminum bottles, we strive to be eco-friendly as the bottles can be reused. Because
the aluminum is also extremely sturdy, our spray can easily be used in any setting. It is perfect
for home usage, such as in bathrooms and kitchens; Ascention is also highly portable and
can be taken to school lockers and stored in cars. Because of the non-chemical aspect of
our product, Ascention can also be used on the body. Due to the accumulating pollution in
the air, our team has designed our product to be completely chemical free while still serving
its purpose. Our combination of water along with essential oils creates an all-natural
alternative to conventional scented spray.
Price
In order to reach our sales goal and obtain the revenue target that we have set, the price of
$5 per bottle has been set. Many factors, such as break even, budget and audience,
contributed to our decision. A $5 price gives our company about a 50% profit and also sets
the break even to be 56 units; this means that each individual will have to sell approximately
3 bottles, a very easily attainable target. Due to our sales being mainly through cash, our
price is very convenient as customers usually will have $5 in both loose coins and bills. We
have also decided on creating special promotions during the holiday season to encourage
customers to purchase more.
10
Marketing Department
Place
The majority of our sales will be done at school because of the various connections we have
there. We also plan to sell in many venues such as Farmer’s Markets; the non-chemical and all
natural aspects of our product will appeal very well. We also hope to sell in office lobbies in
Downtown because our product is also very marketable to individuals in the professional world.
Adults can easily use our spray in their homes as an everyday deodorizer. When selling our
product, we ensure that our sales pitch is short but direct and informative; the We also hope to
generate sales through our company website; this will not only make purchasing easier for the
customer, as they will not have to track down a salesperson to buy our product, but it will also
open the doors to a wide range of consumers.
Promotion and Advertisement
Promotion is a crucial aspect to a company’s success. Because of the frenzy that social media
has created, we will use it as our main means to publicize our product. Our Information and
Technology team has created various pages such as Instagram, Facebook, YouTube and
Twitter. Through these sites we are able to efficiently relay information to our potential
customers; using social networking allows our company to connect with a large audience in a
very quick time span. One of our main objectives in the promotion aspect is to ensure that we
consistently update our pages. We will inform our followers of when production is occurring so
that they know when the optimal time for purchasing will be. We also make sure to advertise
which scents will be produced, and if new scents will be introduced; social media will also play
a large role for promoting special deals and limited edition holiday scents. Our consistent
updates allow our company to connect with our consumers while also showing our
appreciation of their support.
Website and Commercial
Our website and upcoming commercial will also play a large role in advertising our product.
The website will contain scent descriptions and also an overall view of Ascention. We also will
relay our company values through our various social media to allow for people to know who
our business is. These strategies will give customers more incentive to purchase as it will allow
them to feel interconnected with the promotion of our product.
11
Marketing Department
Competition
Bath and Bodyworks is a company that is very well known for its wide variety of scented
sprays. Their products include home sense sprays, and also ones for the body. Although
their products are very similar to our own, there is one very large factor that we excel more
in. Bath and Bodyworks’ conventional sprays use BTH (butylated hydroxetoluene) as a
preservative; this chemical has been proven to have harmful health effects. Because of
the 100mL size of our bottles, we have formulated the spray to not have any preservatives.
A small bottle will ensure that the product is used up in a short period of time, thus
eliminating the need for a preservative. By using essential oils in combination with water,
we ensure that our product is completely natural and chemical free.
12
Human Resources Department
Human Resources
Objectives
The Human Resources department strives to ensure all 23 Eau Co. members are positive,
efficient and driven in order to be successful. To ensure the upkeep of team morale, team
building activities are planned to bond company members to be not only co-workers but
companions. Every two months if at least 150 units are sold, Eau Co. company members will
participate in a team building activity like a potluck or movie in order to retain and have
members looking towards a goal. Also, HR will also at the end of the year reward the top
three sellers and those with 100% attendance with a gift card so that commitment and hard
work is encouraged. Moreover, the goal of Human Resources is to lead communication and
accountability of the company by using social media often to post updates about what is
going on as well as outlining plans for the future. The HR department is to post the minutes of
the meeting and any important or outstanding items the same night after the meeting so
that all company members are updated.
Compensation Plan
Eau Co. is founded on the principle of hard work and competition. Therefore, wages are
solely based on commission. In a tiered system, if one sells 10 or fewer products, they will
receive no commission. If 11 to 30 products are sold, the company member will receive 5%
commission and members who sell 31 or more products will receive 10% commission. As well,
weekly, company members will take turns announcing how many products each person has
sold thus, motivating members to continually pitch and sell.
# of Units sold Commission Earned (%)
0-10 0
11-30 5
31 + 10
13
Human Resources Department
Human Resources
Training
At Eau Co. each elected vice president is responsible to delegate tasks within their
department in order to make utilize the full potential of all company members.
President: Cyrus Tung initiates and leads all meetings with an agenda that is focused and
clear. He is the overall check and balance as he weekly, asks for updates from each
department about their progress of any innovative ideas, concerns or improvements that
members have. He supports, organizes and leads the company fairly so that the whole
company succeeds collectively.
Marketing: Julia Zhang often encourages her cohorts to research aspects of marketing like
advertising and sales pitching in order for company members to understand their role. As
well, she helps all company members understand the processes like filling in their receipts.
Information Technologies: Johnny Zou passes on his knowledge of utilizing technology and
social media to help market effectively, increase communication and advertising.
Production: Jessica Ye overlooks the and mentors and teaches all company members the
essentials of producing Ascention since all are made by hand. She explains the value of
producing a high quality product with beautiful aesthetics and efficiency so that consumers
have trust and faith in Eau Co.
Finance: Jeffrey Zhou explains the tasks of the company’s book-keepers including topics
such as a break-even analysis and accurately completing balance sheets so that company
records are kept up-to-date and precise. As Rachel Poon oversees Human Resources, she
trains her department members to record the minutes of the meeting, keep team morale
high and is always organized to keep important documents. In order to unify and overlook
all departments,
14
Information Tech. Department
Information Technology
Goal and Objectives
The IT department of Eau Co. strives to assist all other areas of our company in achieving the
high standards expected of our company in terms of our website, social media and customer
service. It is our intention to ensure that all sections of the company have optimal
technological conditions for being able to achieve productive results. Our IT department is
fully equipped to meet our goal of presenting the company in a proficient, innovative and
aesthetically proficient manner in order to suit the needs of our customers.
Record Keeping
Information regarding the company will be stored both online and offline. Simple documents
will be stored on the Facebook secret group, which is only shared among Eau Co. company
members. Meeting minutes are also shared on the group and kept confidential from other
companies. For larger and more important documents such as the business plan, Google
drive is used to allow all executives to work on the plan as a group. Because this data is
saved using cloud storage and only shared among company executives, it is kept relatively
safe and secure. Other files will be stored on the personal computers of company executives
and retrieved if they are needed. Paper documents will be delivered direct to the president
and kept classified.
Social Media Strategy
The information technology department plays a key role in advertising the company as well
as communicating with potential customers. We will be using three main social media sites:
Facebook, YouTube and Twitter. Our usage of these highly popular websites will provide us
with the potential for highly positive contributions towards our company. Facebook will serve
primarily to advertise Eau Co’s brand as it is advantageous in helping us attract a large
customer base on our company’s new Facebook page due to our extensive network of
connections related to our pre-existing, personal Facebook accounts. YouTube is a highly
potent source of video hosting and streaming, thus it will mainly be used to host our video
commercials which will be created to promote the company’s product. Twitter is also a
popular social media site; its purpose will be to update customers on the general progress of
the company through “tweets.” Refer to Marketing for more details.
15
Information Tech. Department
Website Strategy
The website for the company will serve to provide our viewers with everything they need to know about our company
and our product. It grants customers with access to company details in an efficient way and will consist of five main
pages: the about us page, the contact us page, the product/shopping page, the partnerships page and finally a gallery
page. The about us page will provide anyone interested with an informative description of the company itself. This will
include a general summary on the company, the members involved in the company (both executives as well as non-
executives), the mission, and finally the charity the company will be supporting. The contact us page will allow
communication between the company and the customers.
The customers will be able to provide feedback and other general questions/concerns towards the company with this
page, where it will then be the IT department’s job to bring up such issues in weekly meetings. The product/shopping
page will provide all the information needed to encourage potential customers to purchase our product. In addition, it
allows for customers to purchase our product online, increasing our revenue. The main purpose of the partnerships
page is to provide information about our sponsor, KPMG. The website making tool called WordPress will be used to
create this website. To host the domain, our company will take advantage of the fact that Blue Ocean has generously
provided JA companies with free website hosting. A twenty-five dollar fee has been included in the finance sector in
order to purchase an elegant and responsive theme to make the website aesthetically pleasing.
Communication Plan
Our company will be using Facebook as our primary form of communication. A Facebook group has already been
created to inform company members of upcoming events, updates and requirements. Thereafter, it will be the
company member’s responsibility to ensure that each due date is meet. The Facebook group will also be useful in
gathering opinions/suggests or new ideas regarding the company itself. For more formal communication, a company
email has been created to ensure that communication between suppliers is kept professional. The email account will
be made available to the executive team in order to send and reply to urgent emails from suppliers or customers.
16
Information Tech. Department
Company Technology
At least two laptops will be made available during meetings. Company members may be required to bring in more
computers if they are needed in specific meetings where a number of laptops must be present to complete the task
at hand. A majority of company members have a laptop they will be able to bring, so this will not be a problem. For
the most part, the computers will be used to keep track of attendances, bank accounts, managing social media,
contacting suppliers, etc. A guest account for internet has been provided by our sponsor KPMG, and will ensure that
at least one computer will be connected to the internet to complete tasks.
Documents can be uploaded directly onto the Facebook group in order to be made available to all group members.
For bigger files, a USB or external hard drive can be used to store information.
Company members will provide all the necessary equipment in order to film the company’s commercial and take
photos. After taking raw footage, it will be the IT department’s responsibility to compile and edit the video. This will
be done with either Sony Vegas Video editor or Adobe Premiere Pro CS6. After editing, the final product will then be
shared on YouTube and advertised through social media sites and the website. For photo editing and logo creation,
Adobe Photoshop CS6 will be used. At stages throughout logo creation, the opinion of the company as a whole will
be used to ensure that the logo has been modified to perfection.
17
Information Tech. Department
How IT will support other departments:
President: With an initiative to support the president, the IT department will guarantee that
every technological compartment of the team is operational and running smoothly. For the
president, the IT group will keep an organized record of all contact lists and ensure
communication between the president and team members. The department will relay
information from the president to the team.
Marketing Department: The IT department is a quintessential part of maintaining determined
efficacy in the marketing scheme of the company. Three main aspects of the marketing will
be tackled by the IT department. One is being the advertising aspect, where the department
will be responsible for the creation of the company logo, and another being social media
advertising through YouTube, Facebook, Twitter, etc. Lastly, The IT department shall relay up to
date information to the customers, such as information regarding seasonal events and special
products. Ensuring that the online payment channels are functional for customer usage is
essential in generating revenue through online means.
Production Department: The IT department will be acting as a database for the production
department and will contain information on supplier contacts, tracking order processes,
stocks, etc. Communication between the supplier and the company is vital, and therefore a
responsibility of the IT group.
Finance Department: Access to technology is necessary for the Finance department.
Therefore, the IT department will provide access to electronic financing software. Online
payment and deposit system provides the Finance department convenience for transactions.
The IT department will ensure that payment devices such as Square (device used to accept
credit card payment using a phone app) will be operational. It is the IT group’s objective to
ensure that access to the system is serviceable at all times.
Human Resource Department: Through the implementation of proper knowledge of software,
the IT group will help the HR department. This ensures that the electronic charting software,
such as excel, are available for usage to ensure maximum productivity. The IT group will also
store all documents from the HR department regarding attendance, track of wages, meeting
minutes, etc.
18
Finance Department
Finance Department
Goals and Objectives
This year, Eau Co. would like to return at least triple the value of each share issued, giving back
$60 to each one of our shareholders. We are looking to go above and beyond, and sell
significantly more units than the projected breakeven point of our product. To do this, we
need to minimize our expenses, while selling as many products as possible. By buying bottles
and oils in bulk, we have cut down the price of each unit, decreasing our variable costs. Also,
we are advertising our product on multiple social media platforms, looking to maximize the
exposure that our product gets. This, in conjunction with our excellent marketing, has already
skyrocketed our sales. As of the first week, we have already sold 37 units, and received over 40
more pre-orders, bringing us above our breakeven point of 46 units. We hope to continue our
success in the future.
Initial Capitalization
After the establishment of Eau Co. we sold 23 shares, one to each member of our company.
Each share was priced at $20, giving us a starting balance of $460. This was enough to cover
the cost of our first shipment of raw materials, which cost $430 in total, as well as our fixed cost,
which was approximately $125. An estimate of $2.22 is required to produce each individual
unit.
Risks
Just like any other business, Eau Co. has its own risks to consider. The biggest risk of our product
is that we may not be able to sell as many products as we would like to. Despite our product
being suitable for a wide range of people, if we do not market it correctly, there is a chance
we will not be able to meet our financial goals. Thus, we will be training everyone in our
company to make effective and successful sales pitches. Furthermore, we will be marketing
our product to as many people as possible by setting up sales booths in malls and
communities around Calgary.
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Finance Department
Break-Even Analysis
Our primary product is a 100 ml bottle of essential oil and water, priced at $5 per unit.
Fixed Costs:
Rent $100
Website $25
Total Fixed Costs: $125.00
Variable Costs:
100ml bottles $260.95
Ribbons $2.00
Essential Oils $130.51
Card Stock $2.00
Total Variable Costs: $395.46
Per Unit:
Bottles: $1.81
Ribbons: $0.03
Essential Oils: $0.33
Card Stock: $0.05
Total Variable Costs per Unit: $2.22
Breakeven Point: 56 units/$280
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Finance Department
Financial Statements
Eau Co. Week 8 Income Statement Cost
Revenue – Sales $165.00
Revenue – Shares $460.00
Expenses – Fixed Costs $-125.00
Expenses – Supplies $-395.46
Total: $104.54
Transaction Date Account Description Debit Credit
1 Nov. 18 Cash Shares 440.00
1 Nov. 18 Equity Shares
440.00
2 Nov. 18 Cash Sales Nov. 18 - 1, 2, 5, 6,7, 12, 13, 14 40.00
2 Nov. 18 Revenue Sales Nov. 18 - 1, 2, 5, 6,7, 12, 13, 14
40.00
3 Nov. 18 Expenses Fragrance Oil 18.73
3 Nov. 18 Liabilities Fragrance Oil to Jessica
18.73
4 Nov. 18 Expenses Aluminum Bottles 242.56
4 Nov. 18 Liabilities Aluminum Bottles to Jessica
242.56
5 Nov. 18 Expenses Dollar Store Bottles 27.30
5 Nov. 18 Liabilities Dollar Store Bottles to Jessica
27.30
6 Nov. 18 Expenses Essential Oils 130.51
6 Nov. 18 Liabilities Essential Oils to Jessica
130.51
7 Nov. 18 Expenses Cardstock & Ribbons 4.00
7 Nov. 18 Liabilities Cardstock & Ribbons to Jessica
4.00
8 Nov. 18 Expenses Water Beads 10.08
8 Nov. 18 Liabilities Water Beads to Jessica
10.08
9 Nov. 18 Expenses Aluminum Bottle Duty Tax 18.39
9 Nov. 18 Liabilities Aluminum bottle Duty Tax to Jessica
18.39
10 Nov. 18 Cash Payment to Jessica
450.00
10 Nov. 18 Liabilities Payment to Jessica 450.00
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Environment, Health and Safety
Environment, Health and Safety Department
Goals and Objectives
The responsibilities of the Environment, Health and Safety department entails of ensuring the
workplace is free of hazards, keeping all the employees healthy and making sure the
environment is hygienic as well as being responsible for the environmental awareness within
the company.
Environment
Eau Co. builds on the principle of green as we identify ourselves as an environmentally
conscious company. We are fully aware of the environmental concerns that are impacting the
society today and we are in search for alternatives to minimize our impact on the community
we live in.
Our green principles are reflected through several usages of re-usable materials within our
production. The major materials used in Ascention are Aluminum Bottles that can be reused
and recycled. The essential oils themselves come directly from natural sources, and are 100%
environmentally sustainable.
Health
As a company whose product aims to promote healthy lifestyles, Eau Co. strives to provide a
product that offers numerous health benefits. To reflect our determination in health, we have
conducted extensive amount of research to present the customers with the health benefits
they expect to receive. Each member is aware and glad to explain the health benefits to all of
our customers as well as external research. Sources will be provided through our website to
inform our customers that they are choosing the right product.
Safety
For Eau Co., safety is our top priority. We plan to follow and monitor our safety procedures
throughout the whole production process. Our regulations and quality control allows us to
present a product that is safe to our customers.
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Risk Assessment and Conclusion
Risk Assessment and Conclusion
Risk Assessment
There are many risks involved in the creation of our product. One of the main risks lies in our
suppliers. Because our suppliers ship raw materials to us, our supply line is at risk. If the raw
materials do not make it in time for our weekly meetings, it could cause our company to be
behind in production. If the materials are damaged, they would need to be shipped back and
reshipped to us, thus, causing our competitors to be ahead of our company in terms of units
made. This is one of the main reasons we’ve opted to pay more for priority shipping as
opposed to normal shipping. As a company, we cannot afford to be wasting time waiting for
raw materials to arrive. At Eau Co. we strive to deliver products as soon as possible after they
are ordered to maintain customer satisfaction.
Another risk lies in the usage of our product. Due to the fact essential oils are flammable and
form a majority of our product, if misplaced or misused, our product could become a serious
fire hazard. To prevent this, our team as whole supply customers with the knowledge they need
in order to maximize the usage of our product while keeping risks at a minimum.
Conclusion
The establishment of Eau Co. will introduce a new and unique selection of scents for individuals
within the City of Calgary to enjoy, and will definitely promote a scent-filled lifestyle. Our
commitment to our product is reflected through the extensive and detailed amount of
research, planning regulations to enforce in order to ensure the success of the company, as
well as the environmentally sustainable experience we hope to bring forth to our valued
customers. We are confident that Eau Co.’s Multi-Purpose Fragrance Spray possesses the
potential to fulfill a unique niche within the fragrance/deodorizer market, allowing us to
expand our market and promote our product to a greater portion of the society. We believe
that our passion and dedication will translate into the success of the company as well as
achievement of our goal to inspire and promote an ethical and environmentally conscious
business within the City of Calgary.
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Company Photo
From left to right:
Back Row – Tasnim Hannan, Yi Liu, Altmish Khan, Christie Zhang, Kisa Ghavami, Jun Kim, Kushama
Mehta, Richard Chow, Bryce Fang, Billy Wang, Victoria Koo, Emma Yoon, Kyle Wong, Karen Tang,
Chetan Sadioura, Cindy Duong, Raisa Chowdhury
Front Row – Johnny Zou, Julia Zhang, Cyrus Tung, Rachel Poon, Jeffrey Zhou, Jessica Ye
Appendix A
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Company Structure
President
Cyrus Tung
Advisors
Landis McEwan
Lisa Book
Thomas Bradley
Chris Phone
Grace Fung
Aaron Ho
Appendix A
VP of IT
Johnny Zou
Billy Wang
Kushama Mehta
VP of Production
Jessica Yi
Emma Yoon
Altmish Khan
Tasnim Hannan
Christie Zhang
Yi Liu
VP of Human Resources
Rachel Poon
Jun Kim
VP of Finance
Jeffrey Zhou
Raisa Chowdhury
Kyle Wong
Richard Chow
Bryce Fang
VP of Marketing
Julia Zhang
Kisa Ghavami
Karen Tang
Chetan Sadiodura
Cindy Duong
Victoria Koo
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Tradeshow Booth Design - Tentative Checklist prior to Tradeshow Event
- Check off items on the day of February 7th, 2014 and February 8th, 2014
February 7th February 8th
Are all Promotional Items Prepared? ____ ____
Company Name Sign ____ ____
Price Sign ____ ____
Seasonal/ Theme Decorations ____ ____
Enough Staff Booked? ____ ____
Have Staff Received Sales Training? ____ ____
Enough Products to Sell? ____ ____
Do We Have All Necessary Materials? ____ ____
Sales Slips ____ ____
Pens & Pencils ____ ____
Appendix B
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