Business Report Final Assignment FNBE

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Taylor’s University SABD | FNBE 08/14
SCHOOL OF ARCHITECTURE , BUILDING AND DESIGN
FOUNDATION IN NATURAL BUILT ENVIRONMENT
Introduction To Business (BUS30104)
Charity Drive Event (Business Report)
Group members :
Name Student ID
Lim Ting Le (Leader) 0320028
Wong Qin Kai 0320024
Lee Jia Kiam 0320029
Ngo Jia Haur 0320144
Nur Iman 0321736
Lecturer : ​Chang Jau Ho
Submission Date : ​20​th​
June 2015 (Saturday)
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Taylor’s University SABD | FNBE 08/14
Content
Title Page
Cover page 1
Content 2
Executive Summary 3
Objective 4
Target Market 5
Competition Analysis 6­7
Product & Packaging 8­13
Pricing 8­13
Promotion 14
Sponsorship 15
Distribution 16
Green Measures 17
Human Resource Planning 18­19
Evaluation of Results 20­21
Appendix 22­26
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Taylor’s University SABD | FNBE 08/14
Executive Summary
In this project, we were asked to start a business to raise the fund for a charity
organization with RM 2500. The charity organisation that we choose was Rumah
Seri Kenangan Cheras. We decided to choose this organization because they need
us to provide them the best care to those homeless old folks, they don’t even
deserve to ​bear the consequences. Some children don’t want to take care of their
parents whenever they are suffering with disease, therefore they decided to send
them to this organization .Through this charity drive, we successfully hit our target
amount RM2632.70 by collecting the donation and selling our products. There
were a number of competitors but we managed to hit our target by using some
promotion.We used different kind of promoting ways to communicate with our
customer and we also used online method to easily let them understand our
product and the aim of charity. In our team, we assigned the job fairly and equally
to every teammates. Beside that, we also concerned about the green measure for
this project to remain the environment ­ friendly. The final conclusion, our team
members performed well from the beginning of the charity drive to hit the target
within the limited time. The key factors to hit the goal successfully in this charity
drive are our communication skill, financial plan, marketing plan and also
operation plan.
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Taylor’s University SABD | FNBE 08/14
Objective
We had chosen Rumah Seri Kenangan Cheras (RSKC) as our charity
organization.This organization was founded in 1965 and inaugurated by Menteri
Kebajikan Am. The aim of RSKC is to provide custody and protection to the
senior citizens who are poor in order to secure the well­being and their quality of
life. Besides that, they also provide treatments,medicine,counselling services,
guidance, worship facilities and recreational facilities to the senior citizens. Not to
be forgotten, RSKC also encourage relatives and local community to pay
attentions and contributions to senior citizens who are placed in institution. The
reason why the activities such as open days, celebrations and national celebrations
were held is because they provide an opportunity for the community to visit and
interact with them.
The quantifiable objectives that we want to accomplish in this charity event are
getting a target profit of RM2500 with RM 1000 for sponsorship , RM500 for
donation and RM1200 for our sales units.
Video Link :https://www.youtube.com/watch?v=p4HCzWviHNQ
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Taylor’s University SABD | FNBE 08/14
Target market
Through this charity drive event by selling our products to Taylor’s student.
We are targeting the male and female gender and the age which is between 18 ­
25 because our products are Dota 2 t­shirt, plain t­shirt and necklace. Through our
research, 50% of Taylor’s student plays Dota 2 online game and loves sport, so we
decided to sell the product which related to those element.
Our business charity event’s title is all about the old folks. Through out our
research, most of the student will donate their money to the old folks because they
tend to change those old folks to a better life.
Other than that, they also understand the hardship for us in this assignment. For
this reason, there are numbers of friends which support our charity event through
donation and buying several products from us. But since we are selling product in
Taylor’s university lakeside campus,we can’t set a high pricing for our product
because student couldn’t afford to purchase such high price product. Therefore, we
are forced to limit our pricing.
In Taylor’s University, we spotted that there are many couples walking around
the campus. Most of our buyers for the necklace are from the boy who buy for
their girlfriend. Couple will interested for the necklace, gamer will interested with
the the Dota 2 t­shirt and sport people will interested with the plain t­shirt.
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Taylor’s University SABD | FNBE 08/14
Competiton Analysis
Some of our competitors during charity drive.
During the charity, we also found out that there are several competitors around
the campus and also the charity event. There are some real challenges for us to hit
the target because some of them are selling the same products. As you can see that
some stores are selling the Dota 2 t­shirts and the necklaces around the charity
event. Due to this competition, selling Dota 2 t­shirt and necklace is hard for us
because with the same product, there will be a different pricing for each product.
Therefore, the hardest part is to compete the pricing for every products.
With the pricing of the Dota 2 t­shirt, the average pricing is between RM25
due to some friendship price and some promotion price. At the campus, there is
also a shop which sell sport jersey which can become our competitor too. The
main strength of our Dota 2 t­shirt and the sport t­shirt is the quality of the shirt.
For reality example, a buyer come and buy 1 sport t­shirt for himself but on the
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next day, he come and buy 20 pieces of the sport t­shirt for his friends. We
interviewed him about the reason for purchase a big amount of our sport t­shirt. He
replied that the quality is too good and comfortable. Therefore, his friends asked to
buy that amount of the sport t­shirt.Same to the Dota 2 t­shirt,we sold out the Dota
2 t­shirt within 2 days which the reason is also the same ( good quality ). With this
high amount of demand, I believe that our product satisfied the customers and let
them leaves a remarkable impression towards our products.
For our necklace, we were able to sold an amount of the necklace. But with
this product, there is a shop placed at the campus which is our main competitor
too. In term of pricing, we tried to make its price lower than the shop and we able
to sold some of it. We are not so focus in the necklace because the necklace was
taken by Ngo Jia Haur’s mother. If there is a remaining necklace, we will return to
his mother as well.
Our main strategies are all about the promotion and the pricing. Our focus is all
towards the student around the campus. In between the charity event, you can see
that all of our store are comparing their product with the promotion and pricing. I
think this are the main factor and element to compete each other.
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Taylor’s University SABD | FNBE 08/14
Product & Packaging
Product
Plain sport t­shirts, Dota 2 t­shirts and jewelries are the products that we sold
during business charity drive event. The reason that we wanted to sell these three
products because they are cheap and more affordable for student to obtain it.
1)Plain sport t­shirts
Based on our research , most of our students always like to wear plain sport t­shirt
to the campus because it seems lightweight and comfortable so we decided to
purchase a certain amount of t­shirt for our business charity drive event.Other than
that , the differences between these t­shirts are their colour and size
Colour : Red, Blue, Black and White.
Size : S, M, L, XL, XXL and XXXL
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Taylor’s University SABD | FNBE 08/14
Packaging
To reduce the cost, we decided to use plastics bag as our packaging.We just fold
them up and put inside the plastic bag. Besides that, our packaging was good in
design and it looks simple and attractive. The reason that we had chosen this
plastic bags as our packaging is customers can see through our packaging and they
can know more with how our products look like and what quality does those
t­shirts used.
Pricing
Cost Price : RM10.5
Selling Price : RM25
The selling price is 2.4 times cost price. As you can see, each piece of t­shirt that
we sold can earn RM14.5. However ,it is also reasonable for us to sell the t­shirt
with RM25 because the quality of our t­shirts is high and colourful. After
business charity drive event, we found out that plain t­shirts are not easy to sell
because all we left in our store are very big sizes. But luckily we did sell these
products early before the charity drive start.
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Taylor’s University SABD | FNBE 08/14
2) ​Dota 2 Clothes
Based on our research , 60% of our students like to play dota 2 online game so we
decided to purchase it as our product. Due to we are not sure about the market of it
so we only had purchased with 8 pieces of dota 2 t­shirt. The differences between
these clothes are colour, length, and size. But they got similarity too, all of them
are printed with Dota 2 logo.
Colour : Red, Black, Yellow, Dark blue, Blue and Grey
Size : M and L
Length : Long sleeve and Short sleeve.
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Taylor’s University SABD | FNBE 08/14
Packaging
To reduce the cost, we decided to use the original one as our packaging when we
bought from Taobao. We all know that the main attraction of the t­shirt is not
about the packaging but is the quality of it. As you can see the pictures above , all
the dota 2 t­shirts are printed with dota 2 logo and putting outfits together will be
easy also .
Pricing
Cost Price (short sleeve) : RM19.60
Cost Price (long sleeve) : RM42
Selling Price (short sleeve) : RM 25
Selling Price (long sleeve) : RM 45
The selling price of short sleeve is 1.28 times the cost price. For the long sleeve is
1.07 times the cost price. It is reasonable for us to sell the t­shirts with RM25 and
RM45 because our clothes look very colourful and popular. As you can see , the
profit that we earned from each long sleeve is only RM3 because during that time ,
we already hit our target with RM2500 so we decided to put RM45 as our selling
price and make customers more affordable to obtain it.
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Taylor’s University SABD | FNBE 08/14
3) ​Necklace
We decided to sell jewelries as our product during the business charity event
because most of the ladies and couples were easily get attracted by the jewelries.
For one practical example , when a boy knew that his girl friend like this kind of
jewelry ,he will come and buy secretly because he wanna give a surprise to his girl
friend. All of the jewelries that we sold are genuine silver and its wouldn’t turn
rusty. We sold different types of jewelries with different colours and prices. As
you can see the pictures above , there are blue, orange, red, pink and and white.
Packaging
The packaging of jewelries are simple because all of them are packed with a small
plastic bag. To make it more attractive, we decided to take them out and show it
on a yellow colour towel.
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Taylor’s University SABD | FNBE 08/14
Pricing
Cost Price : We took it from Ngo Jia Haur’s mother shop.
Selling Price : RM21­RM31
We managed to sell 8 pieces of jewelries during the business charity drive event .
Most of the customers are couples and lecturer .As Ting Le mentioned , one of our
customer had hesitated for a long time because she is not sure want to buy how
many pieces but at the end she decided to buy two which are the yellow and blue
colour. Other than that ,she also told us that if her daughter like this too she will
come back tomorrow but unfortunately she didn’t come.
Video Link : ​https://www.youtube.com/watch?v=p4HCzWviHNQ
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Taylor’s University SABD | FNBE 08/14
Promotion
The first strategy that we used to promote our products during the charity event
is to combine all the information into 4 pieces of posters. The purposes that we
wanted to combine all the information into posters is to let them understand about
the messages that we wanted to conduct. For some customers who doesn’t want to
purchase for our products, they can donate some money to the old folks
organization that we had mentioned in the poster.
For the second strategy that we used to promote our products is Facebook and
Instagram because nowadays there are too many people like to use social network
to convey their information so we decided to use this strategy to hit our
assignment’s target as well. By using this strategy ,customers can also easily
understand about our charity purpose and the information of our products.
Last but not least, our last strategy to promote our products is walking around
the campus. We take some of our products and sell them to the staff and also the
one who was studying in the classroom. It can also successfully attract the
customers who doesn’t walk through the student life centre.
Video Link: ​https://www.youtube.com/watch?v=p4HCzWviHNQ
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Taylor’s University SABD | FNBE 08/14
Sponsorship
During the charity drive event, we are required to request some sponsorship to
help us achieve our goal. First ,we had approached some companies which named
Red bull Malaysia and Malaysia Milk Sdn Bhd by sending the sponsorship letter
and also the charity organization letter as prove .The reason that we wanted to
target them because they often promote energy drinks and Marigold HL milks in
our campus. But unfortunately ,we get refused by them.
Since we get refused by them , we then approached some sponsorship from our
parents and group members. Here is the name of sponsors and the amount that
they sponsored.
No. Name Approach Method Amount
1. Wong Qin Kai Face to face RM100
2. Lim Ting Le Face to face RM100
3. Lee Jia Kiam Face to face RM100
4. Ngo Jia Haur Face to face RM100
5. Nur Iman Face to face RM100
6. Chan Ching Yee Phone Call & email RM100
7. Wong Ung Ching Phone Call & email RM200
8. Lim Chin Huat Phone Call & face to face RM200
9. Lee Yew Beng Face to face & phone call RM200
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Taylor’s University SABD | FNBE 08/14
Distribution
We found a manufacturer named Evergreen Adventure Sdn Bhd at Taman
Midah which supplied us with 96 pieces of sport plain t­shirts. Other than that, we
only had ordered 8 pieces of Dota 2 t­shirt from Taobao because we are not sure
about the demand of Dota 2 t­shirts.
For the sake of the common target , we also try to get some necklaces from
Ngo Jia Haur’s mother shop because she is the owner of Nk Crystal Marketing.
Due to his mother is a business­minded people, she comes up with a good idea
which is to receive the half revenue that we earn from the necklaces .Therefore,
we deal with it.
In our store, we have enough products to sell to our customers. So, we don’t
have to spend much time on preparing the products to the customer. Most of our
revenues are came from the customer which purchased with our products. In a
specific average, the rate of customer who purchase our products (around 60
peoples ) is more than the customers that donated money into the donation boxes.
Lastly , we also provided pre­order service via social networking such as
Facebook and Instagram to our customers. The reason that we wanted to provide
this kind of service was save time and it will make the customer easier to get the
information before they decided to buy our products.
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Taylor’s University SABD | FNBE 08/14
Green Measures
By selling the sport plain t­shirt and the jewelries, we had used plastic bag to
deliver our products to the customers. However, the plastic bags that we bought
are good in design because it can seal up after we used so it doesn’t causes any
environmental problems if we managed it nicely. For example, each t­shirt is
covering with one plastic bag. But in certain cases, if a customer has purchase 2
pieces of our t­shirts ,we will only provide one plastic bag to the customer because
plastic bags don’t harm the global warming but it does harm the environment.
Based on our research , marine animals and birds are died each year by choking on
the plastic bags because they always take them as their foods.
Another important matter is that we always use one car rather than going with
5 cars to order our products.With this action, we managed to prevent the
environmental problems because if we go there with 5 cars, it may causes air
pollution and wastes of petrol. For the donation boxes, we used the unwanted
materials such as wooden that we found at Block E to create donation boxes.
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Taylor’s University SABD | FNBE 08/14
Human Resource planning
This is our group’s organizational chart:
Human Resource Planning
At the beginning of this assignment, Lim Ting Le was chosen as our group
leader. Since then,we also appointed him as our group’s project manager since he
is good at strategy planning and problems solving. As a project manager, Ting
Le’s task is to order products from the supplier and ensure that the whole charity
drive event run smoothly. Moreover, it is also important for a project manager to
be self­motivated and inspiring.
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Taylor’s University SABD | FNBE 08/14
Due to Wong Qin Kai has a lot of experiences in accounting so he volunteered
to be an accountant. In this project, Qin Kai is in charge of managing the budget,
recording all the transactions and preparing the P&L statement to show the profit
or loss of the business. On the other hand, Ngo Jia Haur is responsible for
advertising because he is creative and never failed to come out with innovative
ideas. He was assigned to prepare publicity posters and update information on
social media sites, such as Facebook, Instagram and etc.
For Lee Jia Kiam, our sale executive, his task is to approach potential
customers and communicate with buyers.. As a sale executive, Jia Kiam had done
a great job. He has the ability to cope with rejection, desire to sell, and excellent
communication skills. Furthermore, Nur Iman served as our marketing manager.
His part is to promote our product and support the advertising executive with
marketing plan and strategies. Not to be forgotten,a special gratitude to Iman
because he is the only member who volunteered to bring alone the donation box
and asked for donation in our group.
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Taylor’s University SABD | FNBE 08/14
Evaluation of the result
Profit & Loss Statement of Business Charity Drive Event
for the period ended 12th June 2015
RM RM
Sales Revenue 2,732
Less : Cost of goods sold
Plain t­shirt 1,068.50
Dota 2 t­shirt &Dota 2 key chains 298.60
Jewelry 140
Plain t­shirt packaging 16.30
Total Cost of goods sold 1,523.40
Gross profit 1,208.6
Add other revenues
Sponsorship 1,200
Donation 232.50
Adjusted gross profit 2,341.10
Less : Operating Expenses
Receipt books 8.40
Net profit 2,632.70
After whole week of business charity drive event , our group had totally gained
a lot of profit by selling the plain sport t­shirts and the jewelries that took from Jia
Haur’s mum shop. As you can see, the profit that we earned from plain sport
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t­shirts and 11 pieces of jewelries are RM1061.50 and RM142 respectively.
Through the Profit & Loss Statement , our group’s net profit is RM2,632.70 which
already included with sponsorships and the donations.
Besides that , the things that we did right from this assignment are choosing the
plain sport t­shirts and dota 2 t­shirts as our charity products because the demand
of both t­shirts are too high and 60% of our students are dota 2 fans so they are
more likely to buy. However ,we also set a good strategy for our plain sport
t­shirts which is sell them early in order to earn more profits. Other than that , the
thing that we did wrong from this assignment is the phone casing because one of
our member had purchased the phone casing wrongly. At first, we wanted to
purchase Iphone 6 casing but unfortunately he purchased the wrong casing which
is Samsung Galaxy S6. Due to his careless,we had only managed to sell one casing
during charity drive event.
Last but not least , if we can repeat the same event one more time , we would
like to ask for more sponsorship from the big companies because this time we all
focused on group members and their parents so that’s why we only get limited
amount.
Video Link​ : https://www.youtube.com/watch?v=p4HCzWviHNQ
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Taylor’s University SABD | FNBE 08/14
Appendix
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Our Posters
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