Final intro to business report

SCHOOL OF ARCHITECTURE, BUILDING &
DESIGN
FOUNDATION IN NATURAL & BUILT
ENVIRONMENT
July Intake 2013
Semester 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
1

Table of content
Title 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
2

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
3

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.
4

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.
5

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.
6

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.
7

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.
8

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.
9

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.
10

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.
11

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.
12

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.
13

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.
14

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.
15

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.
16
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 Event
Revenue
Sales RM 2,220
Less: Cost of Goods Sold RM 1,221
Gross Profit RM 999
Add: Other revenues RM 36
: Donations RM 510
: Sponsorship RM 500
Adjusted Gross Profit RM 2,045
Less: Operating Expenses
Promotion Expenses RM 40
Total 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
17

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.
18

Appendix
19
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

20
Figure 1.4 Our Hungry Puppy Donation Box
Figure 1.5 Drawing out the Kitty and the Hungry Puppy

21
Figure 1.6 Our loyal customers playing FIFA 14
Figure 1.7 Painting the sign board for our booth

22
Figure 1.8 Painting our sign boards and donation boards.
Figure 1.9 Cutting out the pieces of the sign board

23
Figure 2.0 The receipt from PAWS after the donation.
Figure 2.1 Receipt of the Arizona Drinks that we have purchased

24
Figure 2.2 Our final touch up of our Arizona sign board
Figure 2.3 Sample receipt of a bought item.

Final intro to business report

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Final intro to business report