business activity report pipilala

8/12/2019 Business Activity Report Pipilala

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UHAS 3012 ENTREPRENEUR AND ENTREPRENEURSHIP DEVELOPMENT

SESI 2012/2013(2)

LECTURER: PM DR KAMARIAH ISMAIL

ASSIGNMENT 3: BUSINESS ACTIVITIES REPORT

GROUP PIPILALA COFFEE SHOP

LEADER: SYED MOHD IZMIR C12BE0042

GROUP MEMBERS: AMIR AL-HAMDI C12BE0005

CHIA GIN JIAH C12BE0008

CHU SHU ERN C12BE0009

DANIEL KAN XIN JIAN C12BE0010

LEE JUN XUAN C12BE0016


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A) INTRODUCTIONThis business report covers the process of setting up and administering the business of PIPILALA

coffee stall during a two day Entrepreneurship Fair held at Tasik Ilmu, UTM on the 20th and21st of April

2013.

Pipilala is a conceptual brand of coffee shop selling not only coffee but handicraft items as a

lifestyle shop. The process, finances and challenges faced are included in the report.

B) AIM To experience the process of setting up a business and its execution

To calculate risks and manage resources properly.

To train and improve communication skills with people To earn profit through correct entrepreneurship methods

To train and improve business skills and strategies among members


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C) ORGANIZATIONAL CHART- PIPILALA COMPANYCEO

SYED MOHD IZMIR

FINANCIAL

DIRECTOR

LEE JUN XUAN

MARKETING

DIRECTOR

CHIA GIN

JIAH

SALES

DIRECTOR

DANIEL

KAN

R&D,

OPERATIONS

DIRECTOR

AMIR AL-HAMDI

PUBLICITY

DIRECTOR

CHU SHU ERN


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D) BUSINESS INTENTIONWe did a research on different lifestyle or themed cafes in Asia and thus decided on a handicraft

themed lifestyle cafe. Handicraft themed cafe is unique to the Malaysian market and the components

for such cafes are easily available for new entrepreneurs like us. For a "handicraft" themed cafe, there

are 3 basic elements, which are:

1. Coffee

2. Handicraft & Accessories

3. Dessert

Therefore we have decided on selling all three kinds of products to present a better and more

thorough lifestyle coffee shop to our customers. Customers' needs are taken into consideration with the

availability of a wide variety of product choices.

I) RECIPE FOR COFFEE

We have researched online for recipes of coffee and have experimented before selling.

Our All Time Fave Recipe (white coffee):

3 tbs of Coffee Powder

1.5 tbs of Creamer

Evaporated Milk

2 tbs Sugar Hot water

Cold water

Chocolate Bliss Recipe (chocolate):

5tbs of chocolate powder

2 tbs of Sugar

Water

Mochalicious (Mocha) :

2.5 tbs of Coffee Powder

3 tbs of Chocolate Powder

2 tbs of sugar

Evaporated milk

Water


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ii) RECIPE FOR COCKTAIL PUDDING

2 -3 tablespoonscornstarch

1/2 cupsugar 3eggs

1 (12 ounce) canevaporated milk

1 cupskim milk

1 teaspoonvanilla
http://www.food.com/library/cornstarch-137http://www.food.com/library/sugar-139http://www.food.com/library/egg-142http://www.food.com/library/evaporated-milk-500http://www.food.com/library/milk-360http://www.food.com/library/vanilla-350http://www.food.com/library/vanilla-350http://www.food.com/library/milk-360http://www.food.com/library/evaporated-milk-500http://www.food.com/library/egg-142http://www.food.com/library/sugar-139http://www.food.com/library/cornstarch-137


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E) PREPARATION FOR BUSINESS

1. Purchasing of Coffee raw materials

2. Purchasing of handicraft goods

3. Preparing the packaging of the stock

4. Promotional and publicity of the shop

Clockwise from top left: The tools to make coffee; The menu board; The preparation of coupons and

tags for the products


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i) COFFEE MAKING PROCESS

ii) PUDDING MAKING PROCESS

Put coffee,sugar, creamer

and hot water

into a cup and

stir

Transfer themixture to

shaker and add

ice before

shaking

Transfer theshake mixture

to the plastic

cup and add

water and ice

cube

Add fresh creamand chocolate

rice before

serving the

customers

Mix together the

sugar and

cornstarch, add

the eggs. Beat

until the mixture

is well combined.

Bring the milk to

a boil over

medium -high

heat. Stir

frequently to

keep it from

sticking.

Add a little of

the hot milk to

the egg mixture,

and stir until

combined.

Pour the egg

mixture into the

milk.

Cook the

mixture until it

reaches desired

thickness,

stirring

constantly

Stir in the

vanilla.Remove from

heat, and place

plastic wrap on

the surface of

the pudding

instead of just

around the pot.


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F) BUSINESS PROCESSCONFIRMATION FROM AUTHORITY

Confirmation of date and site of business

DISCUSSION OF BUSINESS PLAN AND SURVEY

Discussion and survey of types of Malaysian's favourite coffee

New recipe adjusted to customers' taste

ADVERTISEMENT

Advertise by telling friends

Online advertisement

INGREDIENTS BUYING

Survey several market market to seek for better price of basic

materials

Prepare the ingredients

PREPARATION BEFORE STARTING BUSINESS

Ready the stall

make the coffee


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G) SALES AND MARKETING STRATEGYi) PRICING

Since our customer base consisted mostly of students, we have decided on a slightly cheaper price tag

to appeal to our customers.

Affordable price for students

Cheaper price compared to competitors

A cup of 250cc coffee priced at RM3.00 onwards

The coffee types and price are listed down below:

TYPES HOT COLD

All Time Fave RM 3 RM3.50

Chocolate Bliss RM 3 RM3.50

Mochalicious RM3.50 RM4

TOPPINGS (CREAM+DECOR RICE) N/A RM1

For the handicraft items, the pricing is slightly higher but nothing is sold more than RM20. These items

are especially handmade and come in a wide variety of colors and patterns and in limited quantity.

We also sell homemade puddings for a more complete package of our concept and these puddings are

sold at RM2 which is very affordable.

ii) PROMOTIONOur promotional strategy is to have discount coupons available for our customers depending on their

purchase

Below are the different promotional strategies for our different products

10% discount for handicraft and accessories if 2 cups of coffee is purchased

10% discount for coffee if more than purchase of handicraft and accessories above RM10

10% general discount if purchase 2 puddings

Secondly, our director of publicity decorated the booth to appeal to potential customers.

Thirdly, we have promoted through posters and word of mouth among students.

Fourthly, we have provided sample testing for the coffee to encourage potential customers to purchase

our coffee.


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PRODUCT

We sold coffee drinks, handicraft, accessories and desserts under the brand PIPILALA as our concept of

handicraft themed lifestyle coffee shop in an expo.

COFFEE

The coffee is sold hot or cold depending on the customers' request.

We have different flavours to choose from and with an exquisite finishing of the drink comparable to

international chain of coffee shops

HANDICRAFT & ACCESSORIES

Handicraft and accessories are sourced from local suppliers with good quality

PUDDING

Homemade by our Director of R&D and Operations


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H) FINANCIAL REPORTPERCENTAGE OF EARNINGS

BASE COST FOR MATERIALS

Stock Model/pc Quantity

(Unit)

Total

Modal

Sold

Units

Excess

Units

Total Cash

Sales

Profit

Coffee RM 2 50 Rm100 50 0 RM

4x50=RM20

0

Rm100

Handicraft RM 15 20 RM 300 18 2 RM 20x18=

RM360

RM 60

Accessories RM 1 50 RM50 45 5 RM 5x

45=RM225

RM175

Pudding RM1 100 RM100 100 0 RM 2 x

100=RM200

RM100

TOTAL

EXCESS

RM35 TOTAL

GROSS

PROFIT

RM 335

OVERHEAD COST

TYPES QUANTITY PRICE PER QUANTITY TOTAL COST

SHAKER 2 RM 25 RM50

TAG & PRINTING 100 RM 0.10 RM100

PLASTIC CUPS AND

STRAWS

75 RM 0.40 RM30

PLASTIC BAGS 100 RM 0.03 RM3

SAMPLE TASTING 5 RM2 RM10

PETROL - - RM25

TOTAL OVERHEAD COST RM 218

% of earnings =Nett profit /Total Cash Sales x 100%

=RM 82/RM700 x 100%

= 11.71%

NETT PROFIT= GROSS PROFIT - OVERHEAD COST-EXCESS STOCK

= RM335 - RM 218-RM35

= RM82


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I) WORK SCHEDULESaturday Sunday

10am-4pm All members Chia, JX, Shu Ern

4pm-10pm All members Daniel Kan, Syed Izmir, Amir

J) PROGRESS (JOURNAL)DAY 1

We set up the stall on the day itself, i.e. the menu boards, banner and also the product display

rack. Our stall is quite eye catching with our boutique cafe theme of chalk signboards and the girls

wearing white shirts and the boys wearing red t-shirt. Our stall was frequented by mostly ladies due to

the attractive features of the accessories and handicraft display.

We attract our customers by calling out to passersby and giving out sample drinks to passersby.

Due to the hot day, many customers approached our stall to try the sample tasting and we promoted

our line of other products and most of the customers will take notice of other products and purchase

them.

Our sales progress is considered slow during the day as the weather is too hot and there were

not many customers at the fair.

During nighttime, there were more people frequenting the place so our sales were faster and

more promising. We have also changed into costumes and bringing the puddings around the place toattract more customers. Our strategy worked as there was a significant increase in our sales.


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DAY 2

During the morning there was a rain storm and the site was a mess. The tents were almost

flown away due to the strong wind. We have decided to close the stall temporarily to avoid causalities

to the members and to prevent the stock s from getting wet. Moreover, the expo has no visitors due to

the rainstorm.

We reopened our stall at 2 pm after the weather has cleared. Our sales were slightly lower

compared to the same time slot on the previous day. We had to throw out more promotional items for

sale. We had to slash price accordingly to increase the sales for all the items.

We extended our business hours to 1am on the last day to sell more of our handicraft and

accessories to the last minute shoppers and potential customers attending the closing talk (ceramah) at

the fair. We have successfully sold almost all of the stock to our customers.


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K) CHALLENGES

1. Most people bought fruit flavoured drinks from competitors

2. The hot weather discourages potential customers to try our coffee

3. Our lot is at the corner end of the fair which is secluded and dark during nighttime

4. Unexpected rain storm

L) WAYS TO OVERCOME

1. We provided sample drinks for people to try

2. We put the samples on tray and walked around in the fair for people to try the samples

3. We did a lot of decorations and also costumes to attract people's attention

4. We had to close stall to protect the goods and due to safety reasons


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M) SOURCE OF STOCK

Coffee

All of the ingredients involved were purchased at the lowest price we could find at Skudai area.

We went to Giant Supermarket to purchase the coffee powder, sugar, creamer, plastic cups and more

because of the consistent quality and cheaper price compared to other shops.

Handicraft & Accessories

The goods were sourced on internet from local suppliers and were sent to UTM via Poslaju. The

prices were the lowest we could find after comparing several suppliers.

Pudding

All of the ingredients were bought from a local baking shop in Taman Universiti by our Director

of R&D and Operations. He had vast experience in baking and his first choice was a shop that he

frequented for high quality and competitive ingredients.


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O) LEARNING POINTS

i) We prepared a lot of things for the fair but there were still some things that were

unprepared and that caused some problems during the first day (plastic bags, spoons etc)

ii) We have a big variety of products which attracted different people but this also caused our

business focus to be scattered.iii) We also learned to deal with customers' request, slashing prices when needed

iv) It is important to present a good image to the public (cleanliness, uniqueness factor)

v) There will always be risks that are involved with doing a business therefore the ability to

adapt and problem solving is essential to an entrepreneur.

vi) Most importantly, we must maintain a positive mindset as entrepreneurs.


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P) CONCLUSION

All of us at PIPILALA put in a lot of effort and time in order to make this project a success and we are

proud and happy to accomplish a lot individually and as a group to make this lifestyle coffee shop a

success.

We learned a lot from the interview with the successful Mr Faidzal regarding coffee business and we

were inspired to become successful like him too.

Although there were some glitches here and there, we have managed to overcome some of the

problems with wit and problem solving skills.

The project will not be a success of there was no good cooperation and togetherness among all the

group members.

We are very happy that our lecturer, PM Dr Kamariah Ismail gave us this chance to work on our dream

project.


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Q) APPENDIX

business activity report pipilala

Documents