SCHOOL OF ARCHITECTURE, BUILDING & DESIGN

FOUNDATION IN NATURAL & BUILT ENVIRONMENT

July Intake 2013Semester 2

Introduction to Business [BUSF0103]

Name Student ID No.

Lee Kim Thiam 0310710

Lim Chern Yie 0315688

Chua Wei Jie 0316323

Gan Jet Foong 0315998

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Table of contentTitle Page

Executive Summary 3 - 4

Objective 5

Target Market 6

Competition Analysis 7

Product and Packaging 8

Pricing 9

Promotion 10

Sponsors 11

Distribution 12

Green Measures 13 - 14

Human Resource Planning 15 - 16

Evaluation of Results 17 - 18

Appendix 19 - 24

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Executive Summary

For our business module, we were assigned to carry out a charity drive event and to

raise money for a certain charity organization of our choice. We have chosen PAWS as our charity

organization is because we wanted to help the animals that are homeless and sick. Sometimes,

we read the news about homeless animals that are abused terribly by the public, so supporting

this organization will help provide shelter and food to the animals and free them from cruelty

and abuse. For this charity drive event, our group targeted mainly the students and staffs in the

campus. We understand that students are always spending their time on campus studying and

doing assignments, so we decided to serve large chilled drinks so that they are able refresh their

minds and bodies.

For every business there is, there definitely competitors around. Although there are

many stalls that are trying to reach the same target as us, we think that Jerry’s group and

Akmal’s group are our toughest competitors. They sell their products very fast despite the pricing

the set on them. Our group only provided gaming services and sold can drinks through the entire

charity drive. We did not provide any packaging for product as we assumed that people would

most likely consume the products immediately. Despite the lack of packaging, the design on the

can drinks itself attract many customers. The price that we have set for both the gaming services

and Arizona can drinks are RM3 and RM10 respectively. There was no cost of expense for the

gaming services, but we were unable to double the price for the Arizona can drinks as the

original cost of one can is RM5.50 already. Doubling the price would immediately result in the

loss of customers. Fortunately for us, Arizona is popular among the students, so we were still

able to sell a lot despite the high pricing.

In order to promote our products, we used suffering animals as models and a big

attractive banner. We decided to use cat and dog as our animal models because they are

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commonly known by everyone. We drew the animals which are suffering from hunger and

abuse. Then we cut a hole in specific places of the board and attach a box behind them. From

there, people were able to donate their money personally to these animals and understand how

their money can help these animals. Despite the generous donations from random people, we

have gotten sponsorships from a company who were willing to chip in to help the animals in

need. The company, Hiform Engineering, decided to sponsor us a total of RM500 in cash. We

have decided to ask this company because one of our group members was related with the

owners. Our group member who was related to the owners personally asked them if they could

help out and they agreed.

Our main location is at the designated booth in front of Student Life Center, so

customers can get their product once they have purchased them directly. We also went around

the school selling the products, which did not prove to be as effective as the drinks start to get

warm. In order to practice environment friendly acts, we encouraged our customers to endow

themselves into the designs of the cans, hence the reason why we used this product. We

assumed that these designs were bizarre and eye-catching. It would be a good reason to keep

them instead of throwing them away.

As we all know that an organizational structure is crucial for any business. Thus, we have

formed a structure of our own that involves a Project Manager along with a Sales Executive, an

Advertising Executive and an Accountant. In the end, we managed to reach our target of

RM2000. There were definitely more mistakes that we could have accounted for as all of us were

not experienced in this event, but we are very sure that we will overcome these mistakes from

the hands-on experience that we have gained from this event if we were given the chance to do

this event again.

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Objectives

In this charity drive, we have chosen PAWS (Pets Animal Welfare Society) for our charity

organization. PAWS is an organization that provide home and food for the homeless animals.

The reason we have chosen PAWS is because we wanted to help the animals that are

homeless and sick. Sometimes, we can read on the news that homeless animals are treated

terribly by the public, so supporting this organization will help to provide the protection of

shelter to the animals and free from cruelty and abuse. Furthermore, this organization depends

ultimately on the generosity of the public through donations or profits from charity events.

This charity drive event is a great opportunity for us to support this organization. Our

target price was to achieve RM 2,000 in a short time of this event. We decided to sell Arizona tea

and providing a video games booth in this event to gain profit. The Arizona tea is a popular and

attractive drink, thus we can increase the price to gain more profit and we are selling rm10 per

unit so we are targeting to sell at least 200 units. Video game booth is an excellent idea to attract

customers, our group member ( Lim Chern Yie) can provide us an Xbox 360 and games so we

don't have to use any expenses, we decided to charge RM 3 per game.

In conclusion, we believed that PAWS will continue to create a better life for the suffering

and unwanted animals in our country.

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Target Market

In this charity drive event, we targeted mainly the students and staffs in the campus.

According to our early sales before the charity drive begin, we started to sell the Arizona drink

on the path between parking lot and classrooms. We found out that a lot of students recognized

the Arizona drinks and immediately bought it from us, which is very easy for us to sell the drinks.

We understand that students always spend long hard day in the campus studying and

doing assignments, so we served large chilled drinks for what they needed to refresh their mind

and body.

In addition, we provide a video games booth in our place in order to attract customers

and video games lover, many students wanted to release their tension by playing video games,

some students even challenged their friends in a match.

Furthermore, most female students and staffs are animal lovers, we explained our

purpose which is to help the homeless and suffering animals, thus they are more likely to

support our charity organization (PAWS) thought donation and buying our products.

However, most of the students do not have a high spending power because they have

started to work and limited expenses. In order to help our sales, we have to limit our selling price

to a price where the students can afford.

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Competition Analysis

There were few stalls that we see them as our competitors. While the top two competitors

were Jerry’s Group “BREADPOP” and Akmal’s Group “BEASTMODE”.

We see “BREADPOP” as our competitor in the F&B market, as they were selling Tapping

Tapir at RM10 which were at the same price as our Arizona Drink. The Tapping Tapir’s packaging

was on the par with the Arizona’s packaging, however there were only four flavors to choose

from while Arizona has seven. They were also selling “The Potong Artisan Pop” which we see as a

threat to our sales. Our customer target for Arizona drink are those people that were trying to

cool themselves down during the hot day, however “The Potong Artisan Pop” was more eye

catching as it was placed beside the stall in a freezer. Although “The Potong Artisan Pop” was a

great threat but they only have limited supply of it.

The second competitor was “BEASTMODE”. The product they were selling were,

BEASTMODE T-shirt and PS3 gaming service. We see their PS3 gaming service as our competitor

to our X-Box gaming Service. Their PS3 gaming service is a threat to our gaming service because

they display is much bigger than ours and most people never play X-box before. However, we

have did some promotion by giving extra free game for those that play 3 games in a row, hence

we have gain few loyal customers that come to our stall for the gaming service every day.

Although we provide similar service but there were distinct differences between X-box and PS3,

so we have attracted our own group of customers.

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Product and Packaging.

Our group has only provided a service and a product.

-Arizona Drinks, there were 7 flavors available, Iced Tea with Raspberry Flavour, Half Iced Tea X

Half Tropical, Iced Tea with Lemon Flavour, Half Iced Tea X Half Mango, Mucho Mango,

Lemonade with Ginseng and Honey and Black & White Tea with Ginseng and Honey. The

Packaging of Arizona is very attractive as it was big and every flavors have their own design.

-X-box Gaming Service, there were two choice of game available, Fifa 2014 and Street Fighter.

We have prepared a big television as display and provided to two chairs for the customers.

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Pricing

Arizona Drink, the cost price was RM5.5 and we sold it for RM 10. We did not sell it at

the double price of the cost price because it may have become too expensive hence lower the

demand of customer. It was very popular among the student of Taylor University hence we have

had almost no problem selling at the price of RM10.

X-box Gaming Service, there were no cost price for this service and the service was

provided at the price of RM3 per game. We have collaborated with other stalls which also

provide the similar service to fix the market price at RM3 per game.

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Promotion

In order to promote our products, our strategy is using animal models and a banner. We

decided to use cat and dog as our animal models because they are commonly known by

everyone. Each of the animal models is attached to a donation box where we cut a hole in the

models where it would go into the donation box. In this way, people will understand the purpose

of donation.

Our banner is a wide polystyrene board which we decorated with the Arizona and PAWS

logo to promote our product. Our main marketing message is ''Make it plausible, drink Arizona''

which is decorated in the animal models, it means help the homeless animals by buying our

products.

We gave early bird promotion before the charity drive event to attract customers, which

is giving a cheap price at RM 8 instead of RM 10 in a limited time. During the charity drive event,

we approached the people passing-by with our conversation skills.

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Sponsors

For our group, we have decided to ask for a sponsorship from a private business called

HIFORM Engineering. We asked for our sponsorship from this company because one of our

group members was related to the owners of the company. The owners agreed to sponsor us by

giving us RM500 in terms of cash as they thought that writing a cheque would be risky for them.

Our group member who is related to the owners personally asked for a sponsorship from them.

No sponsorship letter was required to request for the sponsorship.

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Distribution

Our distribution methods are simple because most of us have cars and staying nearby.

We bought the Arizona drink at Jaya Grocer and then delivered the drinks in Fedrick's house for

convenience which takes only 3 minutes to reach the campus. Chern Yie brought his Xbox and

the monitor by his car to the campus and then we helped to set up the Xbox and speakers in

position.

During our business day, we drive to Fedrick's house to get the drinks. When we arrived

in campus, we put the Arizona drinks in an ice container. Later on, we poured water and ice

cubes in the ice container to keep the drinks chilled. In addition, we added some salt in the ice

container because salt can slow down the melting rate of the ice.

Our main location is at the designated booth in front of Student Life Center, so

customers can get their product once they have paid. There are also customers prepaid for the

products, we only give them a time limit until we have close our booth.

We managed to get many customers to buy our products by approaching them, even

though some had rejected. We also get pre-order from our friends via phone messages,

Facebook and Whatsapp, this makes it easier for them to buy our products. In our hard work of

selling, we finally sold all 222 drinks in the first three days of charity drive event and reached

exceeded our targeted price, RM 2200 from the Arizona drinks, RM 36 from the video game

booth and a total donation of RM 550.

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Green Measures

In the discussion of environmental friendly, our product’s making process may judge as

low rating in this stage. The reason is because of Arizona drinks are made of aluminum.

Aluminum is a very reactive metal, but it shapes an oxide coating which is highly resistant to

corrosion. The body of the can is usually alloyed with a small amount of manganese to improve

its strength and workability. Then, the cans take up a lot of landfill space, and energy is required

to make them. Aluminum does not occur naturally but has to be extracted out with bauxite from

land in an energy intensive electrolytic process and it will then result in mining that are

detrimental to the surrounding environment. In order to resolve this problem, we always suggest

to our customers by recycling it after consumption because Aluminum is the most practical

material to reuse as a result of the gigantic vitality reserve funds up to 95%.

On the other hand, Aluminum's luminous absolute likewise makes it an appealing

foundation for beautifying printing, significant for an item that must grab the deliberation of

customers in an aggressive business sector. Thus, the designer teams for Arizona always figure

out some creative and catching design by attracting customers’ attention and this is one of the

reasons why we can easily sell out all our stocks in an efficient way. However, even some of our

customers will keep it nicely inside their room as decorations because of its wonderful design

and this is also one of the ways to support recycle manner. Otherwise, we would definitely

suggest recycle the cans rather than throwing it because recycling aluminum reduces the need

to mine bauxite, which, as we have seen, can have negative consequences for the surrounding

areas and the people living there and also save energy definitely.

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Then, we surely can have zero carbon footprints during distribution stage because we

were selling our products and service by walking around the campus and just sitting at our stall.

Therefore, we have no problem and complain about this discussion. At last but not least, as a

group of members that support environmental friendly, we always reduce the consumption of

resources such as electricity. For our video game service, we would just turn on the television

and Xbox console while there moments our customers were playing the games. Otherwise, we

would just shut it off and save the resources of electricity.

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Human Resource Planning

In the business world, we need tools to overcome problems by reducing business failure.

Then, these tools are under a process named as management process. However, there has one

of the components to lead to a good business, which is Organize. A successful company must

have at least a simple organizational structure. This involves breaking a business into subgroup

with specific purposes and this is based on concept of job specialization.

For our business, we will surely form an organizational structure so that we can divide

each of us to the area that we are expert on and then can improve our productivity to it. Firstly,

our type of structure is based on Functional Structure. This is because our business is divided

into departments and each are headed each one of us and we are only producing one type of

product and service. Therefore, this structure is suited for us. This structure is leaded by a

Project Manager then followed by Sales Executive, Accountant and Advertising Executive.

Darren is our group leader for this project so that he will definitely be the Project

Manager. All of our decisions will tell him first and then he will evaluate it and make a final

decision. Jet Foong is our Sales Executive as he is in charges by refilling stocks and ensuring the

products is in standard quality. Then, for the Advertising Executive position, Fedrick is assigned

to that position as he always can think outside the box and figure out some creativity ideas for

the advertising and of course, he tends to make sure all outcomes must be in the limited

standard and think some ideas for advertising in order to attract outsiders’ attention. Then,

Chern Yie will be the accountant for this project as he has experiences by handling this and an

expert compares with others. Therefore, this position definitely will save for him in order to

make sure our business is making profit but not loss.

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In order to make sure our team can work and cooperate effectively with each other, we

always have no conflict with one another and communicate well with each other in no any hold

back. We always discuss well together when there are problems on our side but we would

resolve it with wise ways. Then, each of us will try our best to perform well in our own specific

area and this is why this team can work that well together and our business is that successful.

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Project Manager(Darren Lee Kim Thiam)

Sales Executive(Gan Jet Foong)

Accountant(Lim Chern Yie)

Advertising Executive

(Chua Wei Jie)

Evaluation of Results

At the end of the entire charity drive project, our group has managed to reach the target

of RM2000. We have sold a total of more than 200 cans of Arizona Iced Tea and provided gaming

sessions to customers as well. This is the P&L statement for our group.

Income Statement for Group A Business Charity EventRevenueSales RM 2,220Less: Cost of Goods Sold RM 1,221Gross Profit RM 999Add: Other revenues RM 36 : Donations RM 510 : Sponsorship RM 500Adjusted Gross Profit RM 2,045

Less: Operating ExpensesPromotion Expenses RM 40Total Operating Expenses RM 40

Net Profit RM 2,005

Product A Service A Product A Service A

S. Price $10.00 $3.00 C. Price $5.50 $0.00 Units 222 12 Units 222 12

Rev $2,220.00 $36.00 Cost $1,221.00 $0.00

For this entire project, we sold the right product to the right kinds of people who were

all young adults. The Arizona can drink and gaming sessions were all suitable for young adults.

However, we did not expand our age group limit, meaning that we excluded the older adults,

who were not interested in consuming both the product and service that we have offered. We

were at the booth the entire time as well but the problem is we were not able to focus on more

than four customers at a time. We did not prepare any plastic bags for the Arizona drinks in the

case of customers buying more than three. Other than that, even if we were able to sell a lot of

these Arizona can drinks, there was no doubt that the price we have set for the drinks were too

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expensive. We have made more mistakes than we were able to account for, as none of us were

experienced in situations like this. The only thing we were able to do the best is to smile, be

polite and be friendly with our customers, even if they do not purchase our products or use our

services.

If we were given a chance to repeat the entire project again, we would definitely set our

prices lower for a start. From there, we would figure out a way to provide the perfect packaging

for the huge cans of Arizona can drinks so that customers are able to carry these cans anywhere

they go with ease. After that we will try to stay focused on more than four customers at a time

so that we are able to fulfill their requests without letting them wait. We will also expand our

choices of products to sell so that different age groups of customers are able to get what they

want.

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Appendix

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Figure 1.0 Arizona Can DrinksFigure 1.1 Our booth

Figure 1.2 Our Kitty Donation Box Figure 1.3 Xbox 360 and FIFA 14 Game

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Figure 1.4 Our Hungry Puppy Donation Box

Figure 1.5 Drawing out the Kitty and the Hungry Puppy

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Figure 1.6 Our loyal customers playing FIFA 14

Figure 1.7 Painting the sign board for our booth

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Figure 1.8 Painting our sign boards and donation boards.

Figure 1.9 Cutting out the pieces of the sign board

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Figure 2.0 The receipt from PAWS after the donation.

Figure 2.1 Receipt of the Arizona Drinks that we have purchased

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Figure 2.2 Our final touch up of our Arizona sign board

Figure 2.3 Sample receipt of a bought item.