Table of Contents
1. Executive Summary 3
2. Company Overview 4
3. Marketing 6
4. Operations 10
5. Startup Phase 13
6. Information Technology 15
7. Corporate Social Responsibility 16
8. Human Resources 17
9. Financials 19
10. Risk 26
11. Entrepreneurial Thought & Action 27
12. Appendix 28
‘BaboBox’, is a student run business established in Babson Park, Massachusetts, in
2013, to meet the business project requirements of Foundations of Management and
Entrepreneurship course at Babson College. ‘Babobox’ plans to work in the food
industry and aims to restrict its market to specifically Babson students and parents. The
company provides small care-packages to students, that can be ordered online or at
booths set up across campus. These care-packages can also be delivered to the room
of a student at an extra premium cost. The results of a survey conducted by the
marketing team yielded promising results and has led us to believe that there is
widespread demand for our product on campus. Furthermore, the marketing team also
did a focus group experiment and noticed that these packages need to be aesthetically
pleasing and need to be marketed differently to parents and students. Moreover, the
survey also revealed that there is a demand for a variety of items in every box.
Therefore, the operation team plans to incorporate at least six different types of product
in every box and it plans to have 5 different kinds of boxes. Given that we plan to sell
our product during the first four months of 2014, the sales team anticipates great
demand for our product around certain holidays and festivals. Therefore we plan to
provide specialty boxes during these holidays and festivals. After taking into account the
above plans, the financial team created the company financials and found that this
would be a profitable venture. With a startup cost of $1400. the company anticipates to
make a profit of $1000 dollars before tax. The team uses the prudential concept of
accounting to calculate the above account and has not taken into account profits the
company was not sure about (delivery charges), but has taken into account all possible
expenses/loses (delivery expenses). Therefore, the business hopes to earn a profit of
more than $1000.The company realizes that to function effectively, all the various
sections of the committee must work together in perfect harmony. There is potential of a
conflict of interest within various departments or lack of motivation within employees.
Therefore, the company also has a Human resource department which will deal with all
the above problems. The company is comprised of five departments which are
supervised by two CEOs. The company plans to work for the wellbeing of Babson
students and parents, and would undertake all measures to make sure that it remains
true to its goal.
‘BaboBox’, is a student run business established in Babson Park, Massachusetts, in
2013. The company’s mission statement is to provide affordable and convenient
packages, created by Babson students for Babson students.
The company is part of the food industry and plans to provide internal care-packages to
students at Babson. These internal care-packages are called BaboBoxes and have a
variety of food items in them, such as nutritional bars, candy, chips, pretzel etc. Each
box contains 6 different kinds of food articles and will be sold at a price of $6. There are
5 different varieties of boxes – Study Box, Midnight Munchies Box, Birthday Box, Study
Box, Natural box and Date night Box. Each box has a different set of food articles in
them, keeping in mind the preferences of Babson students and parents. These boxes
would be sold online and at booths set up at various locations across campus. Students
can either manually pick up these boxes or can have them delivered to their room for an
The business’s competitive advantage is that it operates at those periods of time, when
other food sources on campus are unavailable or inaccessible. Moreover, the company
provides the benefit of delivery, a service which is not provided by any other food
company on campus. Furthermore, these boxes are created by Babson students for
Babson students, keeping in mind their preferences and wellbeing. In light of the above
points, the company is hopeful that the target customers would realize the benefit the
company is offering and would make full use of it.
The business’s competitive advantage is that we have food available when no other
businesses on campus are available that provide the same thing as we do. Moreover
these boxes are created keeping in mind what college students want, so we plan to
provide assortment of goods that are usually not available to Babson students.
The company’s main goal is to have satisfied customers and employees. The company
wishes to provide convenience and affordability to students through its product and
hopes that their product helps the students on campus. Moreover the company desires
to make a minimum profit of $1000 through its business venture.
The company hopes to have a positive impact on the society and on the environment.
The company uses 100% recyclable boxes for its product and plans to promote healthy
eating habits amidst students. Moreover the company plans to promote awareness
about social causes (such as breast cancer awareness) in the society through labels on
its product. The company would also donate any residual inventory to charity after the
end of company’s venture. The company would so donate all the profit it made during its
business venture to ‘Cradle to Crayons ‘, Boston, Massachusetts.
The business holds the values of honesty, respect and team spirit at utmost importance.
The company hopes to foster a team that values each other’s time and appreciates the
effort put in by each and every one.
Our goal is to be a successful company, whose members are satisfied and learn
something from the business. The business also desires to provide convenience and
affordability to students.
Code of Conduct:
Our team defines success in FME as coming together as a team to explore, learn, and
grow together. We will collaborate to achieve the best results in our business and
We follow will follow this code of conduct in order to reach the hallmarks of success:
Achieve Desired Results
We expect these behaviors and actions from each other:
Respect to all members ideas, values, and well-intended actions
A positive attitude for assignments, activities, meetings, and problem-solving
Show up to class and meetings prepared and with a smile
Think critically and creatively when faced with a problem
Be ready to put in hard work and perseverance to be the best team we can be
When these expectations are not met:
Team members will be clear to each other if someone is not positively
impacting the team
Issues will be discussed rather than argued
Decisions will be made by:
Discussing within the team
Coming to a general consensus or vote
No team member making important decisions without inquiring from the rest
of them team
We commit to following this code of conduct to work towards success as a team!
Freshmen , 675
BaboBox’s target market is 900 students and will consist only of Babson students
and their parents. To obtain the target market size, BaboBox utilized feedback from the
focus group and survey results. Based off of these results and by using the team’s input
it was decided that 75% of freshman, 50% of sophomores, 25% of juniors, 10% of
seniors, and 5% of parents would make up the target market. The decline in demand as
grade level increases is attributed to the fact that many upperclassmen have their own
kitchens and can more easily access other sources of snack goods.
BaboBox’s direct competition includes Amazon.com, Reynolds, Trim, Dunkin
Donuts, Roche Brothers, Whole Foods and the vending machines placed around
campus. However, BaboBox’s competitive advantage is that they are created by
Babson students for Babson students to satisfy the need for quick and tasty snacks on
the go or delivered straight to the dorm when other food sources are either closed or
inaccessible to students. Therefore the business provides benefits that the competitors
do not offer
The price of a single Babobox will be $6. This price was determined by
comparing the results from the focus group and survey with the cost of goods/services
going into creating a BaboBox.
BaboBox plans to utilize a combination of online and onsite promoting. Online
promoting includes: social media blasts (through outlets like Facebook, Twitter, and
Instagram), and school-wide E-mail blasts. Onsite promoting includes: flyers handed
around campus, posters up on campus, chalk art, newsletters sent to parents, having
representatives at sporting events to entice parents, and advertising through Babson
Radio and Babson TV. Each individual BaboBox will also have a sticker with the official
BaboBox logo on it.
Products will be sold at booths outside of Horn Library and inside Reynolds
Student Center, and during sporting games and events. There will also be a chance for
customers to buy products online which would be available for pick up at one of our
booths or can also be delivered at a higher cost once a week. For online purchases an
E-commerce service called PayPal will be available through Babson. Employees will
undergo a 30 minutes long crash course in selling - teaching them about BaboBox
(products and services involved) and motivating them to be passionate about BaboBox.
For this, BaboBox will not be exploring any alternative outlets of selling and instead we
will be contacting the customer directly. Each employee will work in the selling and
distributing of BaboBox.
Based on the projected expenses on vistaprint.com for flyers, posters, and loyalty
cards we have estimated $200 for our marketing expenses.
Since we need to sell 523 BaboBoxes in order to break even, each member of
the team will need to sell a minimum of four boxes in order to break even. Every
member will sell four boxes per week, excluding one team member, Brenda, because
she is not on campus as much as the other members. Brenda will sell two boxes per
week, and Allie will sell six boxes in order to break even.
Since customers are able to purchase online BaboBox will make sure that our
website is consistent with the design and layout of flyers, banners etc. (specifically
dealing with colors and our logo). It will also contain the mission statement along with
information on prices and delivery times. The website will change often advertising new
seasonal products. For example, in February our website will feature a Valentine’s Day
box while in March it will feature a St. Patrick’s Day box.
In order for BaboBox to measure the effectiveness of our marketing strategies
and techniques, BaboBox plans to implement a “how did you hear about us” feature on
the website. This will prompt customers at checkout, through a drop a box of choices
like: through a friend, on campus advertising, social media, or other in order to figure out
what are the most effective and ineffective ways to market the product.
BaboBox will begin running on January 21st and all sales must be completed by
April 18th. We will be doing our community service at Cradles to Crayons on February
7th. Reports will be given at the various Pulse Report dates, midterm, and final.
BaboBox use various business processes throughout the chain of operations.
We have to order inventory, create BaboBoxes, manage food products and completed
box inventory, distribute the product through different methods, record and analyze
change in inventory, and much more. Processes are developed by CEOs and VPs and
they will be executed by relevant team member
The suppliers we will work with include Costco, Amazon, Oriental Trading, and
Equal Exchange for box components; Nashville Wraps provides eco-friendly boxes and
Print Runner for BaboBox branding stickers. These suppliers were chosen based on
their low prices and availability of products that will need to be purchased. We also
considered of the product quality relative to price and whether the required quantity
matched with our inventory need. Backup suppliers are Packing Source for the boxes
and Printing for the stickers. We do not feel the need for backup suppliers for Amazon
and Costco because they are well established companies with that continue to provide
consistent customer satisfaction. Our suppliers do not require contracts because we are
buying products through their stores or online. All of them will ship using either FedEx or
the US Postal System.
BaboBox chose to use suppliers that contribute to helping the environment and
local communities. Each Costco warehouse engages in philanthropy by providing grants
to local organizations that support children, education, health, and human service.
Amazon uses environmentally friendly packaging that is 100% recyclable and donates a
portion of its profits to local and national nonprofit organizations. Oriental Trading
focuses its Corporate Social Responsibility on education, youth, health care, and human
services. They engage in environmentally sustainable practices by partnering with
paper mills that promote reforestation. Equal Exchange establishes relationships with its
sellers, encouraging fair trade practices and the economic growth of farmers and
workers. Nashville Wraps prides itself on utilizing the Greenway (Trademark) method of
developing 100% recyclable, eco-friendly products. Print Runner uses vegetable-based
inks and an incredibly efficient printing press to produce its products.
Inventory and Manufacturing:
To acquire the inventory needed to sell BaboBoxes, we will put in orders to
Amazon, Oriental Trading, Equal Exchange, Nashville Wraps, and Print Runner. We will
drive to Costco to purchase remaining inventory. It is approximated that Amazon will
deliver the products within 3-5 days of placing the order, and any materials from Costco
can be obtained within the same day. The stickers from Print Runner are approximated
ship within 3-5 business days of the order placement and shipping will be 3 days.
Nashville Wraps delivers its orders within one week. All suppliers use FedEx and/or
UPS to ship their products. We plan to stock inventory for 50 of each type of box.
Additional inventory will be ordered based on weekly and monthly sales analysis. New
inventory will mirror the demand for the most popular boxes. This method is possible
because of our quick receiving shipment times and almost completely free shipping
costs. We already have a schedule from our forecasting that we will reorder inventory in
the first week of March.
BaboBoxes will be partially manufactured during team meetings and others will
be assembled by the supply manager if needed. This will be set up by the Supply
Manager to efficiently create the boxes. Before the business begins selling, fifty
BaboBoxes of each variety will be prepared to sell. In addition to the primary
components, the BaboBoxes will contain packing lists and thank you notes to add
personality to the business.
Inventory will be held in our FME office, which will be rented from Babson
College for $50 for the entire FME period.
Inventory will be audited before and after each session of BaboBox building.
Counts of remaining BaboBox components as well as the counts of each type of box will
be recorded and analyzed alongside sales projections. Communication with the sales
team will help determine the need to purchase more goods necessary to construct the
boxes. An account of the frequency of each box’s sales guides the supply of certain
inventory. Each sale from the website is recorded through a spreadsheet generated by
a web product we are using called Quick Shopping Cart to maintain a consistent stream
of orders that can easily be organized into groups identifiable by the type of box
ordered. We will also manually insert orders from on campus sales onto this same
spreadsheet. This provides a more efficient means to build the boxes so we avoid
building an overwhelming surplus.
We will have several different methods to deliver our product to customers. One
way we will deliver our product is by directly selling to the customer during promotional
sessions at booths. Customers will have the option to select both the type of box and
the number of boxes they want at the booth. We offer a free pick-up option where
customers can come at a set time once a week to get the product from our FME office.
They will have to present an ID as proof of purchase. Additionally, we offer delivery
options once a week. Customers will have the option to have their order personally
delivered to their dorm room by the BaboBox team for a small premium.
The first two options stated are simple in execution that the customers will be
picking up their order themselves, leaving little potential mistakes in terms of delivery.
For the actual delivery service we offer, each member of the business will be
responsible for two shifts for the duration of the operation period. These shifts will be
overseen and delegated by the Distribution Manager. We will have teams of two people
delivering at a time to the dorms. We will be delivering once per week, but we are
flexible to expand if there is a high enough demand when the business is running.
The Operations team will need to collect data for:
Matching with Financial Sheets
The shopping cart program we are using, Quick Shopping Cart, will also be used
for operations. It has a feature to help with product inventory that we will be utilizing to
manage how much inventory we currently have and project what we need. The Supply
Manager will be specifically responsible for overseeing the program.
We will use this data to function within the Operations team. However, we will
also need to report outflow of inventory to the sales team and financial team and report
relationship with suppliers.
BaboBoxes has a total startup cost of $1,300. The initial inventory purchase is
$1000. There are two initial marketing expenses for flyers, and banners and loyalty
cards. There will be flyers and banners for the normal product, as well as for the
specialty boxes for holidays. The team’s loyalty cards will be buy 10 BaboBoxes, get the
one free. These are expenses of $100 and $50, respectively. Initial office supplies
will be $15 for a receipt book. There will also be two expenses for the website creation.
The domain name will cost $14, while the additional software to allow purchases from
mobile devices will cost $10. The software is called GoDaddy Quick Shopping Cart. It
will help with the bookkeeping of online transactions, as well as inventory inflows and
outflows. This software also makes the payments from the customer more secure. The
hard costs total $1,185. The business will account for contingency costs of
approximately $120. The company must purchase the initial inventory by January 7,
2014, in order for the shipment to arrive by January 21, 2014. The team will also take
preorders before the first week of sales, including during winter break. The team
members in charge of preorders will be Julia, Alyssa, and Allie. The team must solidify
the suppliers that will be used. The team must also set up the website for sales before
New Year’s Day. The sales distribution manager must set up the calendar for who will
be delivering on what days.
Web presence is essential for BaboBox’s success, as it will be the main method
for purchasing by direct consumers. For this reason, the IT department must work
closely with the marketing department to ensure that the website meets the satisfaction
of the consumers and is designed in the most appropriate and effective way. For
example, the website should have a green and white color scheme to represent Babson
College, and other similar features. The marketing department also consists of an online
marketing section, which will employ the benefits of social media in order to reach out to
its consumers- an effort that will also be supported by the IT department.
BaboBox understands the importance of security in terms of payment, which is
why sales purchased online will be monitored and secured through the employment of
GoDaddy Quick Shopping Cart and PayPal. The first is an e-commerce software which
features numerous designs and bookkeeping- two very important features necessary for
a successful website. The bookkeeping feature will help the sales and operations
department with monitoring online sales and transactions, and inventory. The cost for
this particular software is $10, a cost that has been accounted for in the financial
statements. PayPal is a service that BaboBox will utilize to secure online payments,
which is key to online sales so that consumers feel safe purchasing the business’s
products online. PayPal aims to secure payment since it allows limited access to
transactional information and offers three different types of business accounts. BaboBox
will be using the advanced business account by PayPal, which charges the business
$5/month. The financial statements have accounted these costs under the name
The development of the website will be outsourced to Alex Reisner, the brother
of one of BaboBox personnel. Due to his relationship to the business, he will be
developing the website without a fee and will also be responsible for the technical
support of the website. If in the future any problem arises with the business’ website or
any modifications must be implemented, Alex Reisner will be -responsible for it.
Although the business will be hosting the website off-campus, there will be no cost for
this due to the help of him. Furthermore, Brenda Ongko –manager of online sales- will
also be in charge of the daily running of the website. Any future problems regarding the
website will be communicated to Alex Reisner through her. Moreover, the BaboBox
website will be registered a domain name from GoDaddy (www.baboboxes.com), which
will cost approximately $14. This registration has also been accounted for in the
financial statements of the business.
Corporate Social Responsibility
BaboBox strives to create value for the Babson community in all spheres and
dimensions by providing essential food services. By facilitating quick delivery of food,
we intend to improve the overall effectiveness and productivity of Babson students by
saving student time to get hold of a quick meal. This time can be invested in more
essential activities to further the holistic development of our students.
The option of purchasing our product as a gift to another person is aimed at
promoting a friendly co-existing atmosphere on our campus to improve feelings of unity
and consolidation as members of a single community.
Additionally, BaboBox has pledged to donate the surplus inventory to Food
Banks in the Massachusetts area, in line with our company’s mission to promote
Our boxes and promotional materials are intended to be made of recyclable
materials in order to further our goal of creating social value.
BaboBox could cause a negative impact on the environment through the shipping
of inventory and waste created by packaging of individual snacks and the box. These
risks can be managed by encouraging recycling. In each box there will be a “Please
Recycle” message on the thank you card. Shipping impact will be handled because both
FedEx and UPS are becoming more and more efficient to minimize the negative impact
that can be caused by the transportation of so many items.
BaboBox will also manage risks to health and safety because food brings up
much of these concerns. The main issue could be with allergies of the consumers. This
risk will be minimized by clearly marking which items have any allergy concerns on our
website and order forms. Each snack is marked for resale, which includes an additional
disclaimer for allergies or even other health concerns.
To ensure respect and professionalism are practiced when dealing with issues, the
HR division and other members of the team have come up with the following list of
guidelines all members must follow:
1. Respect other members ideas and values
2. Complete group and class assignments completely and in a timely manner
3. Uphold a professional attitude when conflict arises
4. Treat all team members the same
5. Accept responsibility for your own actions
6. Attend all meetings and classes unless a reasonable excuse is given
7. Represent Babson and FME with pride and dignity when dealing with customers,
vendors, suppliers, other groups and the external community
Any breach of contract rules will be reported to the HR division for further
investigation. If the investigation shows evidence of an issue beyond the authority of
HR, the Head of HR and the CEOs will bring the issue to the mentors and professors.
They can then issue consequences as they see fit. Any issue that cannot be resolved,
where both parties cannot come to a conclusion, will be decided by HR with opinions
from the CEOs. Any issues regarding the HR and CEOs decision must be brought
about in a peaceful and respectful manner. If an issue is warranted for penalty,
penalties such as more sales duties, temporary absence from team meetings and
discussions, bringing the food for the next meeting or demotion of position can be
issued to the offender. A public and personal apology is not required but expected from
any member who breaks any of the rules listed above. The rules were put in place to
provide a safe working environment for every member, and any member causing
another member to feel at risk of emotional or physical harm will be dealt with
accordingly. The BaboBox team feels as though our success is greatly based on each
member following the rules above and takes the breaking of these rules extremely
seriously. Each member is aware of the list and has no excuse for misconduct.
Three separate performance appraisals will be completed during the spring
semester. The first on the last day of February, the next on the last day of March and
the last on the final day the team is together. Different factors will go into how each
team member’s performance is measured. Attendance at meetings and class,
completing responsibilities, attitude towards other team members and following
company guidelines will all weigh heavily during the completion of appraisals. Any
question or issue regarding unhappiness in how your performance appraisal turned out
should be directed personally to HR. HR will notify the CEOs of the problem so they can
be present during the discussion. If majority of the team is unsatisfied with their
appraisals, the CEOs will look over the appraisals to see if the unhappiness is justified.
If this is the case CEOs will discuss the matter with the HR for an explanation and look
into stripping the HR of their performance appraisal duty. If the CEOs feel as though
lifting the HR of this duty is needed, the CEOs will take over the remaining appraisal
The BaboBox team is supported by a variety of different talents that flourish
through each team member's role in the business. Each member was assigned to their
position based on what they do well and where their talents will help the team the most.
From CEOs down to managers, BaboBox believes each individual was fairly placed into
the role the individual not only wanted but also will benefit the team the most. BaboBox
believes each member has a special talent that is useful and was placed into the role
that will allow their talent to be brought to its full potential. With this said, the talents
needed to launch BaboBox are all present and available within each member. Following
company guidelines closely and giving a complete effort on every task should not only
keep the team happy but also assure Babobox's success.
Electronic communication will be used for team members to keep in touch about
ideas, meeting times and any questions that may arise. The device called “GroupMe”, a
system used to connect more than two people in the same thread, has been set up for
our team to communicate. Each member is required to check their phone daily in order
to not miss changes in meeting times or other important discussions. It is each
individual’s responsibility to be conscious enough to check the thread and be aware of
any changes to meeting times. Any member who is not receiving the messages
because of phone failure or other reasons needs to let the team know so we can adapt
accordingly. Email will also be part of our communication to send documents and other
important items not available to be sent through GroupMe. Non face to face
communication is critical to keeping everyone in the team on the same page and we
believe our methods of communicating will help us achieve our goal.
Table 1: BaboBox Forecast of Unit Sales
BaboBox plans to purchase approximately 4,658 units upfront at an estimated
price of $995.58. Per week, the company estimates to sell 654 sales units, which
accounts for every individual item within one of the products. In week one of March,
according to the projected sales, the company will need to purchase additional inventory
of approximately 3,380. The company plan to sell approximately 7,848 individual units,
and will donate any extra items that is left after termination of the business.
Jan- Wk 3 4,658 4,658 $995.58 654 4,004
Jan- Wk 4 4,004 0 $0.00 654 3,350
Feb- Wk 1 3,350 0 $0.00 654 2,696
Feb- Wk 2 2,696 0 $0.00 654 2,042
Feb- Wk 3 2,042 0 $0.00 654 1,388
Feb- Wk 4 1,388 0 $0.00 654 734
March- Wk 1 734 3,380 $726.41 654 3,460
March- Wk 2 3,460 0 $0.00 654 2,806
March- Wk 3 2,806 0 $0.00 654 2,152
March- Wk 4 2,152 0 $0.00 654 1,498
Apr- Wk 1 1,498 0 $0.00 654 844
Apr- Wk 2 844 0 $0.00 654 190
Total 0 $1,721.99 7,848
Beginning Weekly Inventory
Figure 1: BaboBox Projected Chart of Beginning Weekly Inventory
BaboBox projects to sell an average amount of inventory per week without any
significant changes. Possible significant changes that the projections have not
accounted for include holidays (i.e. Valentine’s Day, Holi) and other high-volume events
(i.e. Basically Babson Day).
Table 2: BaboBox Cash Budget
BaboBox forecasts to collect the same amount of cash (receipts) per week, with
fluctuation in total disbursements. The reason for March week 1 to have high total
disbursements is because of anticipation of purchasing additional inventory. February
week 3 and March week 3 are off by $10.00 from the usual $21.30 because of company
bonding expenses. January week 3 has higher total disbursements because of the initial
Jan- Wk 3 $0.00 $256.00 $256.00 $297.00 $41.00
Jan- Wk 4 $256.00 $542.00 $286.00 $297.00 $11.00
Feb- Wk 1 $542.00 $828.00 $286.00 $297.00 $11.00
Feb- Wk 2 $828.00 $1,114.00 $286.00 $297.00 $11.00
Feb- Wk 3 $1,114.00 $1,390.00 $276.00 $297.00 $21.00
Feb- Wk 4 $1,390.00 $1,676.00 $286.00 $297.00 $11.00
March- Wk 1 $1,676.00 $1,135.00 -$540.00 $297.00 $838.00
March- Wk 2 $1,135.00 $1,421.00 $286.00 $297.00 $11.00
March- Wk 3 $1,421.00 $1,697.00 $276.00 $297.00 $21.00
March- Wk 4 $1,697.00 $1,983.00 $286.00 $297.00 $11.00
Apr- Wk 1 $1,983.00 $2,269.00 $286.00 $297.00 $11.00
Apr- Wk 2 $2,269.00 $2,555.00 $286.00 $297.00 $11.00
Table 3: BaboBox Pro-Forma Income Statement
BaboBox expects a steady revenue stream of approximately $110 - $125 per
week, with the exceptions of January week 1, and March week 1. January week 1 has a
negative net income (before tax) because we must consider the following: the initial
inventory; our initiation fee for using PayPal and our website, all of which are irregular
expenses. Therefore, the only expected “cash burn” period is during January week 1,
and we are forecasting a positive cash flow by January week 2 (the last full week of
654 654 654 654 654 654 654 654 654 654 654 654
Sales $297.00 $297.00 $297.00 $297.00 $297.00 $297.00 $297.00 $297.00 $297.00 $297.00 $297.00 $297.00
$163.20 $163.20 $163.20 $163.20 $163.20 $163.20 $163.20 $163.20 $163.20 $163.20 $163.20 $163.20
$133.80 $133.80 $133.80 $133.80 $133.80 $133.80 $133.80 $133.80 $133.80 $133.80 $133.80 $133.80
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $50.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $50.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$6.30 $6.30 $6.30 $6.30 $6.30 $6.30 $6.30 $6.30 $6.30 $6.30 $6.30 $6.30
Travel $35.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00
Website $0.00 $0.00 $0.00 $0.00 $10.00 $0.00 $0.00 $0.00 $10.00 $0.00 $0.00 $0.00
$41.30 $11.30 $11.30 $11.30 $21.30 $11.30 $111.30 $11.30 $21.30 $11.30 $11.30 $11.30
$92.50 $215.00 $337.50 $460.00 $582.50 $695.00 $717.50 $840.00 $952.50 $1,075.00 $1,197.50 $1320.00
Cumulative Net Income (or Loss)
Figure 3: BaboBox Cumulative Net Income (Loss)
As indicated by the chart above, BaboBox expects to go from a negative net loss
to a profit between February week 1 and February week 2. This should definitely be
bolstered by Valentine’s Day BaboBox sales. Overall, we anticipate a profit of
Table 4: Breakeven in Units
Start-Up Costs $1,303.04
Contribution Margin $0.20
Breakeven in Units 6,790
Breakeven in Boxes 515
BaboBox anticipates a breakeven point of 515 boxes, or approximately 6,790
individual items (in our products), in order to breakeven with no net income or net loss.
Therefore, our start-up costs are $1,303.04
Since we anticipate a high amount of our sales to be done online, PayPal will pay
us for the credit sales and monies will be collected in our FME business account. Any
onsite sales will be done (paid) by cash, collected weekly, and deposited in the FME
Just like any other business, BaboBox too faces a lot of potential risk. One of the risks
that the company might face is the possibility of one of the suppliers failing to deliver on time.
This may cause for a delay in start-up. Because the company has so many different suppliers, it
will be difficult to have them all deliver, or have the team-members go pick up the units on the
same day. This may cause for delay in sales as well as start up. It may also cause the company
to cancel one of the boxes for a short amount of time. To minimize these risks the company
chose some suppliers that are available for the team members to pick up the units instead of
having them delivered.
The company also may have too many excess units at the end of the business because
the business uses a diverse amount of items in its product. Moreover, the company must buy in
bulk and cannot buy a few items in order to have sufficient inventory. After a lot of research, the
team decided to minimize the initial inventory and decided to opt for smaller inventory
purchases throughout the course of the business. The team also found out suppliers who did
not require bulk orders. However the company realizes that it is tough to completely mitigate this
risk. Therefore, if there is excess inventory after the end of the business venture, it will all be
donated to charity.
Entrepreneurial Thought & Action
Our business team understands that the purpose of BaboBox is to maximize the
team’s understanding of the dynamics of business operations. Therefore, the team has
unanimously decided to focus its attention on the learning experience rather than the
maximization of profit. To enhance the team’s educational experience with the course,
the team will anticipate changes in the business process and adapt accordingly. By
understanding concepts with greater depth, the team lessens the need to memorize
processes so it may run as seamlessly as possible. A healthy balance of prediction logic
and managerial logic will help identify which team members and which methods are
most effective for achieving results. Results may arise as financial success and working
cohesively as a team to build strong relationships and trust and respect among
The team understands the inevitable experience of failure along the journey of
running the business and aims to maximize learning essential lessons from failure, in
order to prepare the team to deal with real-world business problems in the
future. Failure will provide stimulus for introspection and will motivate the team to work
towards success in future endeavors. Failure will highlight the team’s shortcomings and
suggest potential methods for improvement to create a more effective mindset for the
The team is excited about learning the essentials of working in teams and
strongly believes in the power of collaboration. This experience will help improve the
team’s ability to communicate in a business context. Although each member of the team
has specific responsibilities, the whole team supports one another through its
endeavors. By working closely together, members’ individual passions may be
enlightened and spark new paths along their educational journeys.
During weekly meetings, the team plans to discuss and reflect on its
experiences. Through these discussions, the team hopes to maximize the learning
process this FME experience has to offer. Processes that work extremely well will
continue to be used, while processes that were not as effective will be altered to support
a dynamic business structure.
VP of Finance
VP of Operations
VP of Marketing
VP of Sale
VP of Human
CO-CHIEF EXECUTIVE OFFICER:
They will work together to plan meetings, supervise inter-business operations, lead
communication with the entire team, and solve problems using entrepreneurial thought and
action, and lead a cohesive team.
Ken will supervise vice presidents of operations and finance, while Naman will supervise vice
presidents of marketing, sales, and human resources.
VICE PRESIDENT OF FINANCE:
He will oversee the budget, manage accounts and sheets, make decisions based off of results,
and communicate with other teams especially relating vice presidents such as operations and
He works as a team with the vice president of finance. He will specialize in inputting information
into the financial sheets and managing receipts and cash.
VICE PRESIDENT OF OPERATIONS:
She will oversee production and distribution of BaboBox this includes reordering supplies and
managing inventory. Also, she will manage the corporate social responsibility of BaboBox.
She will specialize in managing inventory and figuring out which items need to be reordered.
She is also in charge of setting up the manufacturing of BaboBoxes.
He will specialize in the final product getting to the customer. This includes managing orders
and delegating shifts for delivery.
VICE PRESIDENT OF MARKETING:
She will be in charge of the advertisement, promotion, and branding of BaboBox.
ONSITE MARKETING MANAGER:
He will specialize in the marketing of BaboBox through posters, word of mouth, booths, or any
other creative way on campus.
ONLINE MARKETING MANAGER:
She will specialize in the marketing of BaboBox through social media, our website, or any other
creative way online.
VICE PRESIDENT OF SALES:
She will oversee the creating and running of website and booths used to sell BaboBoxes. She
will delegate selling shifts and encourage personal selling.
MANAGER OF ONLINE SALES:
She will specialize in running the website for sales. They will work with VP of Sales and the
Online Marketing Manager to do this. She will also help the CEOs with communication within
VICE PRESIDENT OF HUMAN RESOURCES:
He will help solve issues within the team, help with team bonding (especially with food), and
manage peer evaluations.