project 'u-design cup cake
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DESCRIPTIONBT11103 EntrepreneurshipSCHOOL OF BUSINESS AND ECONOMICSUNIVERSITI MALAYSIA SABAH
UNIVERSITI MALAYSIA SABAH SEKOLAH PERNIAGAAN DAN EKONOMI
BT11103 PRINCIPLES OF ENTREPRENEURSHIP GROUP PROJECT 1 TOPIC: DEVELOPING A SUCCESSFUL BUSINESS IDEA
U-DESIGN NAME JUMATRIATI BINTI PASADDEI WONG HING WEN RICHARD DONNY JEUNI IVY RICHARD ATILANO NUR NATASSHA NADIA BINTI BAKAR SITI ZALEHA BINTI JAWLIN @ MOHD SUPIAN ALICE ABAN PHINAH PHILIP CHUNG CHOON YEAN, NOLAR NOR FAIZATULAZIAN BINTI MOHD AMINUDDIN MATRIC NUMBER BB09160603 BB09110344 BB09110142 BB09160517 BB09110047 BB09160575 BB09110046 BB09160634 BB09110350 BB09110072 SIGNATURE
DATE OF SUBMISSION:
27th August 2010 Page | 1
Description of the business idea
Feasibility analysis of the business idea Product/service feasibility Industry/target market feasibility Organiational feasibility Financial feasibility
Industry and competitor analysis Industry analysis Competitor analysis
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DESCRIPTION OF THE BUSINESS IDEA
A business idea is a concept which can be used for commercial purposes. Our company business idea comes from food industry where we choose to set up an innovation for cup cake market as we can built the cup cake shop itself, customer s own design and delivery service.
There are several methods for developing and testing a business idea. The ability to come up with a business idea can be transformed into a viable business, where ideas supported by feasibility and a business plan can then be sold to interested investors, firms, and interested parties for a lump sum or a management contract, or as agreed. Business ideas, if introduced at the right time, when demand for such service or a product introduced by the idea is expected to surge, can lead to a very profitable business. Business ideas are always available through different sources; however, it is the application applied on these ideas, and timing makes all the difference in failure or success.
There are several techniques that can be used to stimulate and facilitate the generation of new products, services, and businesses. Brainstorming, focus group, and conduct library and Internet research are common ways to identified ideas and for our company s idea came from brainstorming technique which is a process of generating several ideas about a specific topic.
In our formal brainstorming session, our leader group asks all members to share their ideas. We found many varieties of ideas that come up to the discussion and we go through the idea one by one to select the best idea that we can accomplish in the end.
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One of the ideas is cup cake market. All members share their own opinion about this market on how and which part of cup cake market we will make an innovation.
Choosing the idea of trying to make an innovation in cup cake market, we considered about its uniqueness, benefits from the business and also the profitability in the future. Talking about it uniqueness, the cup cake actually unique in term of the small size but customer can choose as much as they want based on their celebration for example for birthday, the variety of taste whereby customer decide what flavor they want and also the cute and nice packaging . It differs from another cake which is quite better and attracting customers to buy. The benefits from the business as we can manage or handle any celebration we considered as our additional knowledge or experience besides getting any opportunity and for that will contribute to our profitability.
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FEASIBILITY ANALYSIS OF THE BUSINESS IDEA
Feasibility Analysis is the process of determining if a business idea is viable. In this stage, our company will do primary and secondary research to identify whether the production of cupcake is viable. The four components of doing Feasibility Analysis are product/service feasibility, industry/target market feasibility, organizational feasibility and financial feasibility.
2.1 Product/Service Feasibility The first component is product/service feasibility which is the assessment of the overall appeal of the product being proposed. In this component, there are two components which are product desirability and product demand. Our company has conducted surveys and also internet research to obtain information and feedback from the consumer itself.
2.1.1 Product Desirability Analysis As we all know, the whole idea behind feasibility analysis is to put an idea to a test. Our company has administered a survey on the demand and desirability of cupcakes as the proper mind-set at the feasibility analysis is to get a general sense of the answer to similar questions, rather than try to reach to final conclusion. Thirty sheets of survey questions have been distributed and the sample of the survey questions is attached at the appendix. After all the survey questions have been answered, the survey is analyzed and thus the following about determining the basic appeal of the product is answered.
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(a) Does it make sense? It is reasonable? Is it something consumers will get excited about? (b) Does it take advantage of an environmental trend; solve a problem, for fill a gap in the market? (c) Is this a good time to introduce the product to the market? (d) Are there any fatal flaws in the product s basic design or concept?
Below are the results of each of the question founded in the survey question.
Question 1: Do you like to eat cupcakes?20 10 0 Yes No
Based on the graph, we can analysis that people are more likely to eat cupcakes. In other words, the demand of cupcakes is very high. Hence, it is a perfect time for our company to introduce and develop the business idea of cupcakes.
Question 2: Are there any cupcake shops available in your nearby places?20 10 0 Yes No
Based on the result, we can notice that there not much cupcake shop available. Hence, it is a perfect time for us to introduce our company to the market.
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Question 3: Would you like to design your own cupcake?40 20 0 Yes No
From the graph above, it shows that 27 peoples likes to decorate their own cupcakes while 3 peoples vice versa. This analysis shows that there should be no fatal flaws in the product basic design or concept as there are much more people who wants to design and decorate their own cupcake.
Question 4: Do you think cupcakes suitable for any functions or parties such as birthday party?40 20 0 Yes No
For this question, all 30 peoples who answered the survey question agree that cupcakes are very suitable for various functions and parties such as birthday party. Hence, it is reasonable for our company to produce cupcakes.
Question 5: What kind of tasting cupcakes do you most like?20 0 vanila chocolate
From the graph above, we can see that the highest taste is chocolate. Through this research, we can identify the specific needs of our company s target market.
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Question 6: How often do you eat cupcakes?30 20 10 0
very often sometimes never
Based on the result, the analysis shows that 28 peoples eat cupcakes sometimes. This cases show that although they love to eat cupcakes, they do not have the chance to buy more because of the limited cupcakes shop that available.
Question 7: Which food do you find most attractive?15 10 5 0 cupcake muffin cake
For the data above, we can see that although the highest food is cupcake, the competition between muffin and cake also exists. Hence, more strategy is needed so that the demand of cupcake will be increase.
Question 8: List three things that people like to eat cupcake. For these questions, most people commented that what they like about cupcake is: i. ii. iii. iv. v. vi. affordable special taste nice design delicious colorful smooth and tender Page | 8
their cute experience
Question 9: Which group do you think prefer cupcake most?20 10 0 children teenager all
Based on the graph, we can see that children prefer most cupcake. Hence, our company s target market will are the children. However, 9 peoples agree that all groups prefer cupcakes.
Question 10: Do you think that cupcake market can success in the food industry?40 20 0 Yes No
Through the research, we can see that all people agree that the cupcake market can success in the food industry. This indirectly helps our company to develop the business idea of cupcakes even wider.
As a summary of the survey question, it proves that the desirability of cupcakes is obvious and it is something that consumers will get excited about. It is a good time to introduce this product and yet can also fill the gap in the marketplace and there is also should be no fatal flaws in the product or services.
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Concept Test Besides conducting survey, in product feasibility component, a concept test should also been done. In this concept test, a preliminary description of our company s product, which is cupcakes, will be stated to the food industry expert and prospective customers to get their feedback regarding the business idea that has been done by our company.New Business Concept U-Design Company Product U-Design Company will sell affordable, colorful, and delicious cupcakes that baked fresh in batches throughout the day. These cupcakes are created using the highest quality ingredients by knowledgeable cupcake specialist. We will treat customers to a heavenly experience filled with freshly baked cupcakes. We will also offer more flavors of cupcakes everyday as the demand of consumer is increasing. Target Market In the first three