2. 1
Table of Contents
About Junior Achievement………………………………………………………….
President’s Letter to the Shareholders………………………………………….
Page 2
Page 3
Company Membership..…………………………………………………………….. Page 4-5
Marketing and Sales……………………………………………………................. Page 6-7
Production…………………………………………………………………................. Page 8
Environment, Health and Safety………………………………………………… Page 9
Human Resources…………………………………………………………………….. Page 10
Information Technology…….……………………………………………………… Page 11
Finance…………………………………………………………………………………….
Summary of Financial Figures and Statements…….………………………
Corporate Citizenship………………………………………………………………..
Recognition of Outstanding Members...………………………………………
Acknowledgements………………………………………………….………………..
Page 12-13
Page 14-16
Page 17
Page 18
Page 19
3. 2
About Junior Achievement
Formed in 1967, Junior Achievement of Canada is an international non-profit
organization that offers various business education programs to students. These
programs help to educate students about business, economics and free enterprise, which
in turn also develop their leadership and entrepreneurial skills. Specifically, the Company
Program provides an opportunity for high school students with a unique entrepreneurial
experience of creating and operating a company of their own with the guidance of
experienced professionals from a career in business. In the 2011-2012 year, the
Newfoundland company, Swollip, succeeded as a company to generate a profit while
sustaining healthy relationships within the company, with our customers and the
community.
4. 3
President’s Letter to the Shareholders
In the evening of March 21, 2012, when coverage of the Swollip’s donation event was
first aired on NTV, a letter was being written in one cozy household in Port Rexton,
Newfoundland. The letter was addressed to the “Easter Bunny” and was being penned by
small hands of an eight-year old girl who loved watching TV and who desired nothing
more but a “triangular, funny-eyed” pillow for the Easter. This letter was secretly read by
her mother later that night.
Next morning, there was an urgent call made to the NTV station inquiring the details
of the news report and any contact information for the company. At 9:30am, my phone
rang in my pocket and I learnt about the desperate need for one or more swollips. After
scheduling the pick-up, I found out that this wasn’t any ordinary order as the mother
drove over 3 hours; if not exclusively, then mainly, to purchase a swollip in St. John’s. The
heart-warming innocence captured in this account has been truly inspirational for all
company members and it also exemplifies our positive impact on the community.
After earning over $3400 in sales, our company, Swollip, a JA company proudly
sponsored by the P.F. Collins International Trade Solutions has closed its books with an
impressive final share value of $15.85. As the President of this young company, I am
especially proud of the company’s performance both in a financial aspect and a
community perspective. I believe that we have closely adhered to our Mission Statement
providing both comfort and a sense of security through our products to our consumers in
close to 200 households across the nation and even around the world.
To our valued customers, we have given an opportunity to practice healthy consumer
choices and strengthened the community spirit through our immensely successful
Corporate Social Responsibility program. As with any other venture, we faced a variety of
obstacles along our path, the biggest one being the inefficiency of our production line in
the early weeks. We successfully overcame this problem by outsourcing our sewing to 2
experienced youth seamstresses. We not only streamlined our production but also
demonstrated an ability to create employment, even as a youth company.
Beyond the challenges, the experience and knowledge that our company members
gained throughout their term are tremendous and simply invaluable, but it wouldn’t have
been possible without the support provided by you and all other individuals involved so
thank-you for making this an exciting and memorable experience! I urge you to continue
reading to discover more about our business and its success.
Sincerely,
Jivetesh Chhatwal, President
5. 4
Company Membership
"Swollip will produce high quality and eco-friendly pillows which will provide both
comfort and a sense of security to our young and young at heart consumers. We strive
to achieve Corporate Social Responsibility while carrying out a successful business
founded on the Junior Achievement principles."
Executive Team-
Jivetesh Chhatwal
President
Grade 12 student at Prince of Wales Collegiate High School
Second year achiever
Philip St. Croix
VP of Human Resources
Grade 12 student at Prince of Wales Collegiate High School
Third year achiever
Zach Cole
VP of Environmental Health and Safety
Grade 12 student at Holy Heart of Mary High School
First Year achiever
Judy Ou
VP of Finance
Grade 12 student at Prince of Wales Collegiate High School
Third year achiever
Ian Donovan
VP of Information Technology
Grade 12 student at Prince of Wales Collegiate High School
Third year achiever
Jonathan Carson
VP of Production
Grade 12 student at Holy Heart of Mary High School
First year achiever
Catherine Durling
VP of Marketing and Sales
Grade 11 student at Bishop’s College
First year achiever
6. 5
Current directors:
Ben Pumphrey
Chantelle-Joy Sainsbury
Kyle Hawkins
Larissa Walsh
Manveer Khural
Matthew Drover
Meghan Noftall
Michael Collins
Stephanie Hodder
Advisors:
Bonnie Donovan
Kelly Rose
Jeff Hillyard
Justin Mackey
Paul Chafe
7. 6
Marketing and Sales
This year, Swollip, a Junior Achievement company sponsored by P.F. Collins
International Trade Solutions had a fabulous year in terms of marketing and sales. As VP
of Marketing and Sales, my weekly job at the company was to sign out the products to
each achiever/adviser and to motivate and reward the company for their job well done in
addition to market our product for optimal sales.
We started off the year by scoring ourselves an interview on the VOCM radio, which
was played twice on air. We also created a Facebook page which currently has 78 likes and
6 people "talking about this". It was a great medium for communication with our
customers. Along with the Facebook page we created a website-
http://www.wix.com/ivan_1_2/swollips (previously found at http://www.swollip.com)
which provided us with 2 sales through our online order and contact forms and also,
served as a good spot to highlight our community activities. Swollip also had posters
located in the Janeway gift shop, and the office of Browning Harvey Ltd.
After our successful sales opportunity at the trade fair on March 3rd where we earned
24 sales, we had a table set up at the Flea Market held at C.L.B. Armory the following day,
March 4th where we sold 1 swollip.
Amidst the weeks of sales and production, we received a $100 Google Ad Words
coupon, courtesy of the Google Corporation, using which we created an online
advertisement campaign where if anybody within a 23km range from central St. John's
googled key words such as "pillows", "Junior Achievement", "Kids bedding" etc., a link to
our website would appear. Over the course of the Google campaign our ad showed up
22,996 times and was actually clicked 111 times.
Product Label tag- Front Product Label tag- Back
8. 7
Swollips were also on display at the Janeway gift shop for about 3 weeks giving us 1
sale. Swollip also won a sales competition held by the JA Support Team winning
assistance for our production by the team members when needed the most. As an
incentive to earn 150 sales, Browning Harvey Ltd. provided us with an opportunity to
attend an Ice Caps game on March 18, 2012, catered with box seats, which was definitely
a boost in the company morale.
With every 2 swollips sold we volunteered an hour in our community, and with every
3 swollips sold we donated 1 product to the Janeway Children's Hospital. This was not
just a great community program but also assisted greatly in driving our sales and fostering
a positive relationship between the company and the community.
On March 21st, Swollip had a successful donation event at the Janeway, with coverage
from the NTV, the Telegram, and the Office of Youth Engagement NL who were also huge
supporters, purchasing 25 pillows!
With all of our marketing, campaigns, word of mouth, and with the support of the
family and friends for Swollip we managed to sell 172 pillows with our break even set at
77 pillows leaving Swollip with a very successful Junior Achievement year.
What our Customers Say
“The pillows I ordered were a big
hit with my kids! Thanks so much
& great job!”
“A really great product idea
and a rewarding initiative”
“My grandchild in Montreal
loves the Swollip”
Quotes taken directly from the Swollip Facebook Page
9. 8
Production
This year, our company, Swollip, sponsored by PF Collins, had an excellent production
showing. We had a couple of obstacles with the sewing and stuffing, but as a company we
resolved it quickly and made the Swollip a very efficient product to make. The solution to
the problem of sewing even created employment in the community by outsourcing to the
local seamstresses.
To produce the Swollip we cut out the body, eyes, beak, stripes for the beak, hair, and
bellies all made out of fleece, using cardboard and Bristol board templates so there was a
consistency in the shape and quality. We then assembled them in kits and delivered them
to our seamstresses who sewed all the parts together saving us many hours. With the
Swollip almost complete, we got them back from the seamstresses and stuffed, put on the
button eyes and finally labeled with either the sales label or the donation label.
Using a tight assembly line we went from 4 Swollips at week 10 to 238 Swollips by week
21. This was because we were making 30 - 40 Swollips a night. We only had to write off 6
products. The Company even won a production competition set by JA Support staff
earning 6 sales for the company.
At the end of the Company program we as a Company have surpassed our break even
product by 95 products. This was an extremely good product that reached its full
potential. I am especially proud that the company met our donation goals and could help
the Janeway. The experience was excellent!
Note- The above graph does not include the production for weeks following liquidation
0 0 0 0 0 0
4
11
35 34
39
24
38
0
0
5
10
15
20
25
30
35
40
45
W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 W17 W18
Production by Week
10. 9
Environment, Health and Safety
In terms of keeping a safe work environment for all people working to produce swollips,
it has gone very well. Every evening, we were careful to always dispose our wastes
properly, like garbage and recycling in their respective containers. In order to keep the
workplace free of idle material, we recycled and repurposed all scrap materials into
various swollip body parts and also used excess material for stuffing in order to minimize
our spending on supplies.
We carefully designed the product to use a very minimal amount of packaging to
eliminate our usage of plastic materials. We have made considerable effort to be as
environmentally responsible as possible.
In regards to worker health, hand sanitizer was provided to help stop the spread of
sickness and if achievers did fall sick we insisted they stay home and recover. To help keep
the work environment safe all spills, debris and tripping hazard that may have happened
were taken care of safely and efficiently. Also, any hazard that may have arisen from
various materials being used, achiever training was brought about and training for proper
and safe use of materials in order to eliminate injury was provided.
Thankfully, there have been no injuries throughout the program. Achievers were also
made aware of the various allergens that trigger allergic reactions that other people
reportedly may have and there have been no allergy attacks.
Finally, in terms of all safety aspects of the company, the nearest safety exits were
identified. Also, while using any electrical appliances, proper training was provided for
safe use of these machines in conjunction to awareness regarding scissors, fabric cutters
and any sharp tools was made describing the hazards they possess and training was
provided for their safe usage. In addition, the labels tagged to the pillows that were
donated, contained a choking hazard statement for infants.
11. 10
Human Resources
As Vice President of Human Resources at Swollip, a J.A. Company sponsored by P.F
Collins, I am very proud of the work my company has done this year. Despite tremendous
setbacks early on, we managed as a team to persevere, surpassing our break-even point,
and having a good time in the process.
My duties as the Vice President of H.R. included, but weren't limited to: tracking
attendance at each weekly meeting, improving company morale when times were tough
via supportive conversation, a light hearted game, etc. and making sure that the company
members were all involved with the company. On the business side, I was in charge of all
things concerning shares. This year, our company sold shares for five dollars each, and
each member was given five to sell. Unfortunately, despite encouraging members to sell
each of their shares, we sold only 62.2% of the shares issued.
Though 2 of the achievers did drop out of our company (at an early stage), our
company ended the year off with a high 81% overall attendance rate, and with following
achievers showing up every night, earning a 100% attendance: Jivetesh Chhatwal, Judy
Ou, Ian Donovan and Manveer Khural.
Our company overcame many obstacles this year, but overall, I believe it to have been
a successful venture and experience for all involved.
89%
94%
82%
71%
81% 81%
94%
63%
69%
94%
88%
81%
75%
88%
63%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 W17 W18 W19 W20
Weekly Attendance
12. 11
Information Technology
There were several accomplishments in the Information Technology department this
year, including such successes as: a fully functional website which includes our own
domain name for easy access and an order form, product tags created using Adobe
Photoshop, a Google Ads campaign and Google Analytics. As head of our Information
Technology department, it was my responsibility to ensure efficient and proper use of
technology within the company.
We used various social media sites like Facebook, Twitter, and created a website. A
Facebook page worked very well for Swollip and continued to be active throughout
company operations. It allowed us to receive feedback and comments on company
activities and to communicate with the public about future events.
Our website was another useful tool. It detailed our product, our company, and
answered any possible questions. We were issued a $100 Google Ads campaign, courtesy
of Google, and our ad appeared 22,996 times as a result of related searching. It gave our
website roughly 111 clicks, and our Google analytics which was being made use of since
February 29, 2012, showed that searches for our website significantly increased after our
donation event on March 21, 2012.
The company’s private Facebook group was very active throughout the whole year,
which helped the company in communicating with one another. It also allowed easy
access to information, which helped Swollip keep accurate and organized records.
13. 12
Finance
Financial Highlights-
Revenue: $3,295
Profit: $1214.77
EPS: $15.85
ROI: 217%
Units Sold: 172
Shareholders- 56
Our company, Swollip, a JA company sponsored by PF Collins, has had a very
successful year. With the determination of our company members and the support from
our shareholders and advisors, we were not only able to break even, but also turn a
significant profit. We are grateful for our success and take pride in knowing that we have
made a difference in the lives of many.
Our Finance Department has had a very rewarding year. Through organized record
keeping and continuous monitoring through our online banking account, we encountered
very little problems throughout the year.
As head of the Finance Department, I had taken several precautions to ensure that
Swollip stays within its budget throughout company operations. This includes working
out a break-even point, monitoring company transactions, and ensuring that all company
payables have been paid off in a timely fashion. I was responsible for keeping accurate
and organized records of all company finances, which includes assets, liabilities, expenses
and revenues. I was also responsible for generating a start-up capital. This was
accomplished by issuing 90 shares amongst company members. These shares sold at a
value of $5 each, 56 of which have been collected, resulting in a $280 start-up capital. The
remaining 34 shares were unsold and the company has succeeded in recollecting some of
them.
Our break-even point was determined by working out several scenarios. At the start of
the company, it had been concluded that at a sale price of $20, our break-even point was
115 units, resulting in $2300. Soon after the production began, it was realized that our
material costs were overestimated. The earlier variable production cost of $7.50 per
product, was re-calculated to be $6.20 even after accounting for the production cost of
the donated product. Through the help of company members, savings were made by
14. 13
having some materials donated and finding discounts on fabric, when possible. After re-
evaluating our break-even, it was determined to be 77 units, resulting in $1540.
Throughout our fiscal year, Swollip was not only able to achieve its breakeven point of
77 units, but also surpass this point by 95 units, completing 86% of the total sales goal.
Swollip has gained total revenue of $3295. After deducting our total expenses of $2080.23
and JA profit tax, our total profit came to be $607.38. This profit is to be distributed
amongst our shareholders, resulting in a $15.85 final share value and 217% gain on each
share.
On behalf of the Finance Department, we would like to thank PF Collins for their
generous support. Next, we would like to thank our advisors for their guidance and
expertise. Finally, we would like to give a big thank you to our company members.
Without the determination of the company, their enthusiasm, and creativity, we would
have not been able to accomplish as much as we did. Thank you.
Sincerely,
Judy Ou, Vice President of Finance
15. 14
Summary of Financial Figures and Statements
Income Statement
Revenue:
Sales 3,440.00
Less: Sales Commissions 170.00
Net Sales 3,270.00
Other Revenue (ie/ Donations) 25.00
Total
Revenue 3,295.00
Expenses:
Raw Materials 715.43
Shop Supplies 0.00
Outside Services 536.00
JA Invoiced Expenses (rent, conference fees, etc.) 485.00
Bank Charges 0.00
Bonuses & Incentives 0.00
Wages 129.50
Salaries 190.00
Other Expenses 24.30
Write-Offs 0.00
Charitable Donation 0.00
Total
Expenses 2,080.23
Income / (Loss) Before Taxes 1,214.77
Net Income / (Loss) 1,214.77
Less: 50% J.A. Profit Tax 607.39
Net Income / (Loss) Per Share 10.85
Number of shares issued 56
16. 15
BALANCE SHEET
ASSETS
Cash 1,494.77
Accounts Receivable 0.00
Total
Assets 1,494.77
LIABILITIES
Accounts Payable 0.00
Profit Tax Payable 607.39
Total Liabilities 607.39
SHAREHOLDER'S EQUITY
Capital
Stock:
Authorized:
56
common shares,
$10 par value $5 par value
Issued:
56 common shares 280.00
Retained Earnings / (Deficit) 607.38
Total Shareholder's Equity 887.38
(Difference:
Total Liabilities and Shareholder's Equity 1,494.77 $ 0.00)
Shareholder's Equity per common share 15.85
17. 16
BREAK-EVEN ANALYSIS
Formula = Fixed costs
(selling price per unit - commissions - variable costs
per unit)
Total Variable Cost Per Unit (from product cost sheet) $6.20
Total Fixed Costs $904.25
Scenario
#1
Scenario
#2
Scenario
#3
Scenario
#4
Enter product price options $12.00 $15.00 $17.00 $20.00
Commission Rates 10% $1.20 $1.50 $1.70 $2.00
Break Even Point Swollip Sales
in units 197 124 99 77
Selected Product Price $20.00
18. 17
Corporate Citizenship
Manveer Khural at PWC Key Club Meghan Noftall, Jonathan
Carson at Santa Claus Parade
Images capturing the donation events with the
Telegram article in the background
Swollip has excelled as a truly socially
responsible company. It was our top priority even
when the company was in the makings 6 months
ago. Thus, we as a company decided to craft a
program which would help us as well as our
customers to partake in responsible actions and
we committed to the following-
Eco-friendly production and product- The
process started at home when we used 100%
recycled polyester and fabric for stuffing the
swollips. We eliminated all fabric waste by
repurposing it as stuffing and also used
minimal packaging rendering our production
waste-less.
Voluntary Contributions- As a way to instigate
volunteerism, we decided to volunteer one
hour in any local organization for every 2
swollips sold. By the end, we have collectively
devoted more than 85 hours of community
service in organizations such as ANC, Key
Club and Junior Achievement etc.
Donations- For every 3 swollips sold, we
committed to donate 1 to a local charity,
mainly the Janeway Children’s Hospital. We
already donated 26 and will be donating
another 31 shortly.
19. 18
Recognition of Outstanding Members
Our company is very pleased to have 4 members with 100% attendance to the weekly
meetings namely-
Ian Donovan
Judy Ou
Jivetesh Chhatwal
Manveer Khural
We also have two sales clubs to recognize members with significant sales.
The $200 sales club includes-
Judy Ou
Jivetesh Chhatwal
The $100 sales club includes-
Catherine Durling
Zach Cole
Ben Pumphrey
Chantelle Joy-Sainsbury
Larissa Walsh
Manveer Khural
Meghan Rose Noftall
The top salesperson is Jivetesh Chhatwal with 12 sales, totalling $240.
Swollip recognizes that every member in the company has at least 1 sale and would
like to thank everyone for their efforts.
20. 19
Acknowledgements
Everyone here at Swollip is highly thankful to numerous individuals and entities for
their support and significant role played towards the company’s success. We would like
to start by thanking P.F. Collins International Trade Solutions for sponsoring and
supporting our company.
Next, we would like to thank Eastern Health; specifically, the Eastern Health Media
Relations Office for assisting in preparation of Media addresses and event preparation,
the Janeway Child Life dept. for accepting our donations and the Janeway Gift Shop for
providing us with a shelf at the shop for sales.
A heart-felt thank-you goes to Browning Harvey Ltd. for rewarding us with a great
sales incentive.
A big hug goes for the Office of Youth Engagement NL for not only covering our
Donation event and volunteer initiatives but also supporting us with a bulk order.
A huge thank-you goes to the following media and social media corporations for
advertising our company-
Facebook
Google
Wix.com
NTV
The Telegram
VOCM Radio
We thank all the JA staff, associates and Company advisors who have volunteered to
facilitate and guide us throughout the company period. Also, we are thankful to all
company members who have demonstrated excellent work ethic, enthusiasm and
commitment towards the company and taking it to new heights.
At last, we would like to thank all shareholders for investing not just money but trust
in our company and making our Company program, an experience to remember.
