SCHOOL OF ARCHITECTURE, BUILDING AND DESIGNFOUNDATION IN NATURAL AND BUILT ENVIRONMENTS (FNBE)

INTRODUCTION TO BUSINESS [BUS30104]

FINAL PROJECT: CHARITY DRIVE EVENTLecturer: Mr Chang Jau Ho

TEAM CUPCAKES

Group Leader:Gabriel Chin ( 0320370 )

Group Accountant: Syasya Janathan ( 0320566 )

Group Members: Aaron Lim (0320270 )

TABLE OF CONTENTS

TITLE PAGES

EXECUTIVE SUMMARY 1

OBJECTIVES 2

TARGET MARKET 3

COMPETITION ANALYSIS 4-5

PRODUCT AND PACKAGING 6

PRICING 7

PROMOTION 8

SPONSOR 9

DISTRIBUTION 10

GREEN MEASURES 11

HUMAN RESOURCE PLANNING 12

EVALUATION OF RESULTS 13

APPENDIX 14-15

EXECUTIVE SUMMARY

In groups of 4, Foundation in Natural and Built Environments students who took the Introduction to Business module needs to run a charity drive event. The purpose of this assignment is to raise funds for a charity organization.This project gives us an opportunity to run a business venture and also to gain experiences about how a business is run throughout a week.

After group discussions, our team decided to raise funds by selling donuts. Donuts were chosen as our products because it is a delicious and enjoyable snack to eat and students would enjoy eating this in the morning. Our donuts come in three different flavours such as green tea, chocolate and lemon. These interesting flavours were targeted to a specific group of people such as students and lectures who want to grab a quick snack before heading to lectures.

All profits will be given to SPCA, a society that for the prevention of cruelty to animals. We chose this charity organization as their mission of this organization is to protect and enhance the quality of life for domestic, farm and wild animals.

In a time period of a week, our team set up a booth near the Student Life Centre in Taylor’s University Lakeside Campus to sell our donuts and receive donations to SPCA. Also, we went to multiple places such as areas around Taylors Lakeside campus and Taylor’s College Subang to increase our sales.

A total profit of RM 1259 was raised by our team for SPCA.

OBJECTIVES

Raise a minimum of RM 2500 and donate it to SPCA by selling donuts Sell a minimum of 500 donuts to achieve the targeted amount within a week Create awareness of the public towards animal welfare

Our team chose to support SPCA and donate all our profit to it as SPCA is a famed organization created to ensure animals live a better life. We are truly inspired by their acts of kindness to animals, with a very more honourable mission to protect and enchance the quality of life for domestic, farm and wild animals.

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TARGET MARKET

1. University Students

University students are the main target of our sales. They are expected to provide the higher percentage of our profit. Students are interested when they see a new stall and our of curiosity want to check out what is going on. Students too also like a quick snack before going to lecture classes when in a rush. So this very much helps in our business.

2. Friends and Relatives

Before the booth near the Student Life Centre is open, sales are targeted towards friends and relatives. People who have known us for longer tend to trust us and support our generous cause of ours.

COMPETITION ANALYSIS

Our competitors are the other 15 groups in our class that were doing charity sales at the same period of time (19-23 January 2015). The two main competitors were:

1. Qayyum Shammie’s Group

This group was selling Cheesy Nachos and Teh Botol. Their booth was located on the end left row of our booth and was the nearest booth to the administration office and commercial block.

Advantages: Their strategic location near the administration office and commercial block allows them to approach potential customers first. Their group would be the first sellers to persuade customers to buy their products or at least collect some donations. It was also found that customers tend to donate more money to them than our team, which affects our income.

Weaknesses:Their profit mainly relies on Allester’s live guitar performance, the products are not very interesting and very pricy.

We as a team did not give up instead adapt to the situation by changing the prices of our products if the sales are going slower.

2. Riven’s Group

This group poses as a stronger competitor towards our because their business compared to everybody else is so much more famous. They sell nitrogen gas ice cream which is delicious and interesting. They are located near the administration block next to Qayyum’s booth.

Advantages:

Their location strategy has helped them alot with sales because the are they very first and last stall students will see while walking through SLC. Their products too are very attractive and cheap costly, Especially on a hot day anybody would want to enjoy some deliious ice cream.

Weaknesses:

Customers who like ice cream only buy from this booth. I have noticed that a percentage of students who might be health conscious or are on a strict clean eating diet tend to waver away from this booth as it only sells ice cream and no other products besides that.

PRODUCT AND PACKAGING

Product

We are only selling donuts for our charity drive. Our donuts are bought from Donutes located at ss15. These donuts come in 3 interesting flavours such as chocolate, lemon and green tea.

Lemon Flavour Green Tea Flavour

Chocolate Flavour

We have three flavours of donuts, green tea, chocolate and lemon.

Features:

The Donuts come in three interesting flavours such as green tea, lemon and chocolate. Flavours that are rare to see especially sold in campus . It can be kept due to its transparent plastic packaging maybe later when the consumer gets hungry.

Benefits: The donuts can be a quick snack in the morning for anybody who has not taken their breakfast before class.

Packaging

We could not avoid the cost of packing due to the reason we are selling food, the donuts must be packaged for hygiene purposes and cleanliness. This also makes us handing over the donuts and receiving money much easier.

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PRICING

Cost Price : RM 4.00 per unitSelling Price: RM 6.00 per unit, RM 10.00 per unit

The selling price is 6.25 times the cost price if the badges are sold in unit, guaranteeing good profit when sold.

Many customers are very much willing to buy our products because it looks interesting and it is a good snack for breakfast, where our sales make the most money. Also students are very much generous with their donations knowing the profits are going to SPCA.

The pricing of the donuts are sometimes RM 6.00 or RM 10.00 depending who are we selling it to. With these figures exchange of spare change is lower thus making the transaction between customer much more smooth and easy.

If there are difficulties selling the donuts, the donuts will be sold at a lower price so that customers are more willing to buy them. If the dontus are sold faster than expected, the price will not be affected.

PROMOTION

1.

Social Network

A Facebook page was created to show all the donuts we have to the public before the charity drive. Customers can inbox us if they have any enquiries or if they would like to place an order. Posts were done on Instagram and Twitter to increase publicity.

2. Posters

An A3 size poster was printed to attract the attention of the customers hoping that that passerby would notice our products and be interested in buying them. It also states that all the profits made from this charity drive will be donated to SPCA stated on the poster.

3. Face-to-Face Conversation

This is the most effective way of promotion. It is applied when we approach potential customers to explain further about our donuts and the reason why we were selling them. We realized that our when we approach our customers when they are sitting down taking a break and explaining to them that our profits will all go to charity. This very much encourages them to buy the products or donate to us.

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SPONSOR

We have tried to ask many companies to sponsor us but sadly no companies said no. Instead we sought out people closer to us, or might have known for a long time. A generous father instead decided to donate 400 RM to us. He too is a big animal lover and when we told him the profit was going to SPCA he was very much generous and happy. The money was handed to us by cash. We very much thanked him for his kind and generous donation.

DISTRIBUTION

Our donuts are carried in a plastic bag arranged individually to each flavour so it is easier to sell to customers and bring around.

We deliver our products by hand. Customers can immediately receive their donuts upon payment. Also, travel in pairs so that one person can manage the donuts and the other person can manage the donations and receipts. In average we approach in estimation of 50 people per day and usually a small amount of them would either donate of purchase the product.

Schedule of Distribution:

DATE VENUE

8/6/2015 Taylors Lakeside9/6/2015 Taylors Lakeside10/6/2015 Taylors College ss1511/6/2015 Broadwalk Commercial Block12/6/2015 Taylors Lakeside , Taylors College ss15

Our team was divided into groups of two. During the first two days, both groups were promoting in campus. On the third day, one team stays at the booth in campus and the other team will elsewhere to sell the donut .

GREEN MEASURES

The badges are produced in an environmentally conscious manner. The products were packaged in plastic containers which is not really environmental friendly but long lasting. Our aim to make the products more convenient to pass to the customer with the plastic container we need not to put on gloves.

We could not avoid the cost of paying for the packing, but the packing makes the donuts look more interesting. We too set up a plastic bag at our booth for customers to dispose of the plastic container, we then thrown away all the plastic bags of containers to the recycling trash can located at Taylors Lakeside.

During our business drive, we reduce the carbon footprints by carpooling when we move to multiple locations to sell our donuts. We do not provide plastic bags for customers. Electronic gadgets and social media was utilized instead of printing brochures while promoting the donuts, decreasing the carbon footprint by reducing consumption of resources.

HUMAN RESOURCE PLANNING

A clear job scope is important to direct and guide each member to do their respective tasks and workload evenly. The tasks were given to each member according to personal strengths and abilities.Distribution of Tasks:

TEAM MEMBER JOB SCOPE

Gabriel Chin Project Leader, Public Relations (SPCA), Agenda Planner, Salesman

Syasya Janathan Accountant, Treasurer, Social Media Manager, Saleswoman

Aaron Salesman

Team Organizational Chart:

EVALUATION OF RESULTS

In this charity drive, we earned a total of RM 1259 for SPCA. The pie chart below shows that half of our profit comes from sales.

SALESMAN

AARON

ACCOUNTANT

SYASYA JANATHAN

PROJECT LEADER

GABRIEL CHIN

We had a good financial record throughout the whole charity drive. Thus, there were no issues on financial terms. The choice of selling donuts is smart. The cost of each donut is RM 4.00 while the selling price is RM 6.00 or RM10.00. The high selling price to cost ratio made our products profitable. Alongside with that, many customers were interested in our variety of uncommon flavours such as lemon, chocolate and green tea.

However, there are still many rooms for improvement. Firstly, we learnt that we should take more second opinions before proceeding on a decision. We noticed that the pricing of the donuts were a little bit too expensive and some students even lecturers were interested in the donuts but he price has scared them off so we try to adapt to the situation by lowering the price back down to RM 6.00 instead of RM10.00. Our team should not have made bad decision instead consult everybody else instead. As a conclusion, our team’s charity manage to make a profit of 1259, we could have done better but due to a member leaving Taylor’s we stumbled but we managed to pull through.

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PROFIT AND LOSS REPORT

Statement of Income For Team Donuts For The Business Charity Event Ended 12 June 2015

Sales Sponsorship Donation

APPENDIX

Photos

RM

Total Sales Revenue 850

LOSS: COST OF GOODS SOLD

Horoscope Badges 400

GROSS PROFIT 450

Total Donation

Sponsorship from Generous Father

81

750

ADJUSTED GROSS PROFIT 1281

LESS: OPERATING EXPENSESReceipt Books A3 posters

1210

NET PROFIT 1259

Receipt from Charity Organization