1.

EXECUTIVE SUMMARY

Choocoby, a new in-campus trading company, provides various flavours of snack to

its clients. At beginning of April 15, 2015, Choocoby officiated to start doing the business
and stopped at the month of May 29, 2015. The founder, Nur Shafiqah carried out the
business together with 3 other partners under the supervision of Encik Kamarulzaman Bin
Ismail. The initiation of the company is to gain experience in business, marketing and
enterprising, earn profit from each project that we do and accomplish the assignment for this
semester project.

Choocoby provides a series of the delicious snacks to its clients who include
Universiti Putra Malaysia students, lecturers and staffs. We hold responsibility from products
selection, selling services. The flavours of our products include cornflakes, Oreo, Snickers,
and M&M.

In order to increase our productivity of company, marketing team has used several
channels in promoting our products. Firstly, several social networking were used as a channel
to promote our product. Facebook page and Twitter account was created to introduce our
product. Then a small booth was set up in crowded locations such as cafeteria and faculty to
introduce and sell our products. As a result, it is show that delicious snack has market value
in Universiti Putra Malaysia.

Choocoby also applied the concept of AIDA in promoting our products. This concept
is used to develop an effective communication strategy. It covers the following aspects:

1. A (Attention)
Choocoby is focused on something that will entice customers to buy. We will provide
several teaser to customers as a first step before beginning the process of buying and
selling.

2. I (Interest)
Choocoby is focusing on the advantages and benefits of our products to increase the
interest of clients.

3. D (Desire)
Choocoby will also fulfill the wishes of the customer. Our company will conduct our
business online. Therefore, our customers can make bookings at any time and we will
also open stores at the right time with the members of the company as at the weekend.

4. A (Action)
Company try our best to ensure that 3 out of 5 of our customers will buy our products
meet at minimun unit.

In terms of the financial, our team has started with an equally shared modal and we do
not take funding from elsewhere. This helps us to establish a more creditable environment
and also to keep the state of our financial status where we can reduce loss to its minimum
level. Profit maximization is what we aim for (40% of total capital), but we actually gain a
little profit from each products we sell and we hope to gain more profit by the quantity that
we sell.

Establishing in the year of 2015 and we hope that our business will be steered on track, gain
reputation, and venture with flying colours. With the aim of carving a niche in Universiti
Putra Malaysia best entrepreneur project series, Choocoby is willing to work out in order to
endeavour in the business.

2.0

OBJECTIVES OF BUSINESS REPORT

There are four objectives to be achieved in our business.

1. Problems Identification
To present a complete report for Choocobys business outgoing. It is a report of
business to be carried out comprised financially, marketability, logistic, and publicity.
This report comprised of all the detailed problems.

2. To induce the interest of investors from various fields

The purpose of business report was to make sure of the investors about our company
from various aspects such as finance, promotion, and business operation. Therefore it
managed to attract the attention of investors and even customers by reading through
the report.

3. In-depth evaluation of our business.

From the report, we can identify the strengths and weaknesses of the implemented
strategies. All the findings will be exemplified as a guide for future reference. This
report can be used to prevent the same mistakes from repeating. In addition, the
strength factors were also being determined and investigated. The progression in this
business will be recorded. The reports recorded all the operation and sales processes
which have been conducted successfully.

4. As a detailed presentation of our business

Business report, systematic contents that ease the business planners for future
reference, depicted the overall of our business. The report consists of a complete
presentation of our business which includes

3.0

COMPANY SUMMARY

3.1

Vision Satement

To provide a high quality products that satisfy and fulfil the needs of dear customers
and create profit at the same time to further maximize the productivity of bussiness

3.2

Mission Statement

1. To deliver quality products and services to our valued customers

2. To gain profit from the business.
3. To inspire good values such as competency, creativity and integrity in every
individual of the company.
4. To understand the world of entrepreneurship.

3.3

Company Logo

Choocoby is the name of our snack. It is best to use the brand as our company name
so clients can easily remember and recall the products that we sell. The colour of the logo is
brown because our high selling product is chocolate based snack. Therfore, clients can easily
recognize our type of poducts. The spoon represent that our product is one type of food. The
star shape is served as the background of the spoon. The star is used to delineate that
Choocoby will provide high quality product and fulfill the need of clients.

The logo of Choocoby delineate our company well. The reason for our choice is that it
gives easily understanding and happiness to our customers by buying our products. People
will be attracted to the name of the company if the logo can easily as they will wander the
hiddens behind the words. Whenever, they see our logo, they will think of our company
which provides the best trading services.

3.4

Company History

Choocoby company was created on March 15, 2015. The company was created under
the inspiration and supervision of Encik

Kamarulzaman Bin Ismail. The founder, Nur

Shafiqah Binti Md Samsuri creates the company together with her 3 partners (Cheah Wai
Seong, Mohd Syafiq Fitri Bin Rosni, Nurul Atiqah Binti Hassan). In Choocoby, we provide
the best products which are capable of bringing happiness and good moments to our valuable
customers. The products are delicious and the packaging are able to attract and capture the
attention of customers. Moreover, the prices of our products affordable to everyone.

3.5

Business Goals

1. To achieve the highest possible profits.

2. To offer the high quality products with reasonable prices.
3. To ensure the greatest quality of products to be on sale.
4. To give the best impression with the service that we provide.
5. Foster good relationships with clients,customers,and partners.
6. Improve performance and good ethics in business.

Business Name:

Choocoby
Kolej Sepuluh,
Universiti Putra Malaysia,

Address:
43400 Serdang,
Selangor Darul Ehsan.
Contact No:

010 372 3895

Registration Status:

Partnership

Registration Date:

March 15, 2015

Trading

Types of Business:
Service
Product:

Snacks

Modal:

RM 70.00 x 4 person = RM 280.00

Business Hours:

April 20, 2015 May 15, 2015

4.0

ASPECT OF BUSINESS ADMIN AND MANAGEMENT

4.1

Organization Chart

CEO
Nur Shafiqah Binti
Md Samsuri

SECRETARY
Cheah Wai Seong

TREASURER
Mohd Syafiq Fitri Bin
Rosni

10

SALE MANAGER
Nurul Atiqah Binti
Hassan

4.2

Biodata and Hierachy of Authority

CEO

Full Name

: Nur Shafiqah Binti Md Samsuri

NRIC

: 920815 04 5122

Birthday

: August 15, 1992

Sex

: Female

Age

: 23

Address

: 101, Jalan Koop Cuepacs 2, Taman Cuepacs, 43200 Cheras, Selangor.

Status

: Single

Academic

: Bac. Deg of Chemical Engineering

Skill

: Fluent in English and Bahasa Malaysia, good in communication skill and

creative

Experience : Various Leadership Experience

Job Scope

: CEO

11

Secretary

Full Name

: Cheah Wai Seong

NRIC

: 910429 08 5477

Birthday

: April 29, 1991

Sex

: Male

Age

: 24

Address

: 30, Hala Kledang 2, Taman Kledang, 31450 Menglembu, Perak.

Status

: Single

Academic

: Bac. Deg of Chemical Engineering

Skill

: Excellent in paperwork tasks

Experience : Promoter
Job Scope

: Secretary

12

Treasurer

Full Name

: Muhammad Syafiq Fitri Bin Rosli

NRIC

: 920529 02 6123

Birthday

: May 29, 1992

Sex

: Male

Age

: 23

Address

: No 79, taman Fajar Bakri, 84200 Muar, Johor

Status

: Single

Academic

: Bac. Deg of Chemical Engineering

Skill

: Good in music and honest

Experience : Promoter
Job Scope

: Treasurer

13

Sale Manager

Full Name

: Nurul Atiqah bt Hassan

NRIC

: 920903 09 5138

Birthday

: September 3, 1992

Sex

: Female

Age

: 23

Address

: Pangsapuri Sri Murni, 80100 Johor Bahru, Johor.

Status

: Single

Academic

: Bac. Deg of Chemical Engineering

Skill

: Financial Management and soft skill

Experience : Promoter
Job Scope

: Sale Manager

14

4.3

Portfolio of Management

Since there are only 4 people in this team, we do not have adequate manpower, which
leads to a situation. Hence, a person would have to take up more than one task. An effective
distribution of work load has to be done so that our business sales could done systematically
and successfully.

Our team leader is Nur Shafiqah Binti Md Samsuri. Her responsibility is to guide the
team to achieve the objectives of our business. She is chosen to be the team leader is because
she possesses various leadership experience in the past. Beside that, she also has good
communication skills and is able to lead team members well.

Our secretary is Cheah Wai Seong. He has many experiences in administrative and
management work. Therfore, he is chosen to be our secretary. He is responsible in preparing
important procedural documents that are needed to get the approval from Division of Student
Affair and other business-related applciations.

Muhammad Syafiq Fitri Bin Rosli is elected as our treasurer. He is held accountable
and responsible any business financial matters, since he possesses some financial
management experiences in the past when he helped our in his accounting family business.

15

In the sales department, Nurul Atiqah Binti Hassan have a certain past experience
which involve financial management, this has become handy when it comes to handling plans
so that our sales could be done effectively. Therefore, she is elected as sale manager. The
experinces that she possess can become handy when it comes to handling plans so that our
sales could be done effectively. The main objective of sale department is to minimize the cost
or budget of our business, while our profits are being maximized.

Even though each different member has different responsibilities in their repsective
departments, yer we all strive all for the same goal that is the success of our business. With
solid teamwork and effective communication among team members, we believe that our
business can and will be able to be executed well.

4.4

Professional Advisor

Professional advice from experienced entrepreneur is very important especially from

those who really know their way in the world of business and entrepreneurship and also had
faced various obstacles when executing their business. And so, we had sought numerous
advices from seniors and various experienced lecturers. For example, we are lucky to have
Encik Kamarulzaman Bin Ismail, our lecturer for the course Basic Entrepreneurship, who had
given our team members lots of advices regarding the set up of our business since the very
first day we started our business plan. And so, from time to time we would seek advices so
that we could constantly improve our sales and business strategies.

16

Furthermore, our members, who are in charge of the sales department, have also
asked for professional business advices from our supplier. As the result, the suppliers had
generously recommended some selling fast products that have lower cost prices. Other than
that, we have also found a supplier that is able to proivde good quality snack according to our
customers desire and choice. Other than that, we also sought advices from the people such as
family members of some of the team members, which currently have their very own wellestablished business.

17

5.0

BUSINESS OPERATION ASPECT

5.1

Introduction of Products

Choocoby Company is selling the chocolate based snack. The reasons for selling
snack as our main product is because customers are able to enjoy the delicious snack with
reasonable price.

The products are mainly obtained from the suppliers in Selangor. From the supplier in
Selangor, Choocoby obtained high quality snacks. The snacks have different flavours. For
example, the flavours that we sold are M&M, cornflake, Oreo and Snickers. Different
flavours of snack can provide more choices to the customers. Customers can buy more than
one flavours of our snack since the snacks that we sold are delicious. The products we sold
are aiming to target different ethnic group. The products are suitable to all races because it is
halal. From this, Choocoby hopes to sell products which relates to our clients lives.
Therefore, people in Universiti Putra Malaysia do not need to go far to search for their
favourite snack but they can actually obtain them in Universiti Putra Malaysia itself.

Finally, the CEO of Choocoby has a contact of a trustable supplier in Selangor. The
specialty of this supplier is that they provide many flavours of the snack. Choocoby expect
some of the people in Universiti Putra Malaysia will have unique preferences. Therefore,
Choocoby gives our client a chance to get their desired flavours of the snacks by selling
various flavours of products

18

5.2

Process and Preparation

The process and preparation of products are divided into two parts mainly the quality
control part and the inventory control part.

Firstly, the sale manager, Nurul Atiqah searched the snack via internet. She did some
survey about delicious food that can attarct the appedice of the customers. Initially, Nurul
Atiqah suggested several type of snacks to become our main products. Quality is assured as
they compare the pricing in each different suppliers. Meanwhile, our secretary, Cheah Wai
Seong went around Universiti Putra Malaysia to survey the students about the favourite food.
At the end, we decided to sell chocolated based-product because most of the customers like to
eat chocolate. In addition, the price of the choocoby sncaks is reasonable. Therefore, we can
provide high quality snacks with reasonable price. After all the snacks had been brought
according to the survey of our members, the treasurer, Muhammad Syafiq Fitri will make
sure that all the items brought tallies with the cash flow.

Before sales, stock check was done so that it tallies with the current amount of stock.
Prices were also determined compared to the code of the products set by the CEO of the
company and agreed by the members. Items such as plastic bags and money change was also
prepared before the sales start in the premise.

During the sales, team member are trying to promote the sales to anyone nearby our
premise. All the money and sales will be handled by the same person assigned so that there
will be no confusion. In the carnival, a booth was rented and the money was accounted in
financial report.

19

After the sales, the stocks are rechecked by the CFO and all the balance and profit of
the sale are handed to the treasurer Any broken stocks will be reported to the sales department
for record keeping. The stocks will be kept in the safe place in the College room under the
supervision of the secretary.

5.3

Insurance and Security Issues

Insurance is crucial when it comes to reducing the loss imposed to the buyers. In order
to increase the credibility to the buyers, we will provide exchange of products if customers
found that snacks that they bought is expired. However, products are not refundable in the
form of cash. The replacement will be done for the items of same price or lower immediately.
Basically, we will try our best to deliver goods with the best quality to our valued customers.

In order to protect our quality of items to be sold, security will also be imposed. The
goods will be kept in a safe place where our members will constantly keep an eye on it such
as in the members hostel rooms. We will also make sure the goods are in good condition
before selling to customers. This is to prevent the reputation of our company become low.
Our members will be given certain amount of products to sell the products.. We will make
sure all the members are involved in doing the business.

For every expired of products, we will make a report to the suppliers. Due to a good
relationship between us and the suppliers, they will surely exchange the broken goods with
the new ones.

20

5.4

Business Premises and Location

Choosing a suitable location to start the bussiness is essential so that sales could be
done more effectively. After having a discussion among our group members, we had
identified two venues that are suitable to run our business, which are Kompleks Akademik A
(KAA) and Foyer Kolej Sepuluh/Kolej Sebelas. After comparing the pros and cons between
these venues, we all agreed to run our booth at Foyer Kolej Sepuluh / Kolej Sebelas

Kolej Sepuluh and Kolej Sebelas are chosen because it satisfies all the criteria that we
needed. Firstly, the members of the group know most of the students in 10th and 11th
colleges. Since the students are mostly from our faculty, it is very likely for them to deliver
the products. It is also easier to convince our friends to buy our products as a proof of
friendship. Secondly, we can store and acquire our goods easily. The goods are stored in the
college, so it is very convenient to bring the stuff and deliver to the customers. Thirdly, a
good relationship between friends and members in colleges can be strengthened. The
Choocoby Facebook profile is used to promote our products to other colleges instead of
Kolej Sepuluh and Kolej Sebelas.

Publicity is very important to our project because a good publicity allows our business
to attract more friends. Poster is one of the ways to promote our project. Pasing posters on the
booth during the carnival can attract people and let people understand our main products. All
in all, with the aid of our posters over faculty and colleges, it does help us to promote our
project to all students effectively.

21

To encourage more people to know our business, we have planned several other ways
to boost our project. We can rely on other methods such as Facebook, SMS, and E-mails.
Lastly, we also bring along the products with us during the lessons. We are promoting
our products to people and tell others in face-to-face regarding our business. It was done
around the faculty of engineering and colleges. We choose these places as there are many
acquaintances. It is easier to inform to the person that we kow than a total stranger. Plus, there
is a continual stream of people at cafeterias during lunch hour. So the probability of them
buying our stuff would be significantly higher after the promotion.

To summarize, we will run our project in Kolej Sepuluh and Kolej Sebelas. Then,
posters as a way of publicity will be pasted in faculty, colelge as well as food court. Next,
flyers distribution wil be run at the hot-spot and during peak hour at the cafeteria.

22

5.5

Map and Directory

23

5.6

Duty Schedule

Our team member are dutied everyday. Once we received oreder from customers, the
nearest team member will deliver our products to the customres. Of course, the other group
members also can go for help when the certain members was not around that area.

At the first week of semester 2 of 2014/2015, the lecture for the course Basic
Entrepreneurship (MGM3180) had started. Our lecturer is Encik Kamarulzaman Bin Ismail.
Introduction to all the students and lecturer had been carried out. Discussion of basic business
plan also been carried out.

At the first 3 weeks, we have discussed about the products that we are selling. We also
dicussed the way to carry out our business. Then we prepare to submit out business plan
report to our lecturer. During these weeks, we had decided the name of our business, the
organisation chart, vision, mission and the logo of our business.

At the week 4 until week 7, we had decided several important aspects of our business.
We need to find selling items source and we also need to decide the place where the business
conducted. After the place was discussed, the target customer needed to identify. The
earnings is estimated and the way of promotion is determined. All of these are recorded in a
report and then submitted to the lecturer, as the business plan report.

24

The marketing activity was started at week 8. Before starting the bussiness, we need
to figure out the problem we would have faced. We need to suggest the most strategic place to
carry out the business and the others aspects in order to make our business more successful.
After the planning, we started to prepare our selling items. We got our selling item from
Selangor. Promotion has been carried out before the business and ended when the business
terminated.

We started our business at week 8 until all the products were sold out. The location of
our business is Kolej Sepuluh and Kolej Sebelas. Not only direct selling, we also open for
ordering from other colleges as we had created a facebook page. The customers can buy their
favourite flavors. We will deliver to the online customer.

After the termination of the business, we started to prepare our financial report. We
also made a discussion to prepare our final report of Choocoby which have to be submitted
on week 13. The earnings will be evenly distributed to every member of the group. This is
what we have done for whole semester for our business, Choocoby.

25

6.0

MARKETING

6.1

Market Analysis

The market analysis is divided into four parts, which are seasonal variation,
competitors, potential strategic allies and SWOT analysis.

6.1.1 Seasonal Variation

The analysis is conducted by our sales group, Choocoby specifically to study on

how different seasons can affect our sales later. Season variation can be defined as the time
period would be very favorable and suitable to sell our product so as to make sure that our
product could get a good response from our customers, mainly from our university students.
Research and survey has been conducted before we even plan and start up our business. We
have determined that our food product that we will sell is attractive and different from others.
Our company, the Choocoby is operated in various strategic locations like college room
and cafes which normally would be crowded with many students.

During the sale, we can clearly see that there are certain particular items that were the
favorite of our customers due to the latest trend. Therefore, we can conclude that seasonal
variation does play an important part in our sales.

26

6.1.2 Competitors

The business competitor is also an important element to be analyzed as part of our

marketing analysis. Our main competitor would be other students which are also selling their
respective products or items as part of their project for their subject of Basic Entrepreneurship
too. Even though we do find good competition here, we still do believe that our unique and
especially different food product items would outstand the other products out there. Besides
that, we also will ensure good quality product delivery, while giving the most reasonable and
affordable price to our valued customers.

During the sales period, there was no interference of other group selling the same
product in this particular period. So, we have the upper hand internally. However, we could
not neglect the fact that there were also external competitors that are well known and
developed.

27

6.1.3 Potential Strategic Allies

In order to improve our product selling rates, we can find our potential strategic allies
to help improve. So our potential strategic allies included different clubs from various
faculties throughout the whole university that would normally conduct large events that
attracts many Universiti Putra Malaysia students to participate. And so, we took advantage of
the crowd of the event and given sufficient permission from the university and the organizing
club of the event, we are able to expand our publicities of products and would potentially
increase our sales. For instance, the Chemical Engineering Club, CheSS will organize an
Chemy Dinner which will include all people in the department of Chemical and
Environmental Engineering, so we tried to approach to the Person In-Charge of that event so
that we could possibly be the souvenir supplier of that event. Either way for both sides, its
definitely a win-win situation for CheSS and our company. Moreover, we tried to find
potential strategic allies that will provide us a good opportunity and opening to sell our
products.

However, our requests were mostly rejected as our company has not yet been well
known and trusted by the customers. So, they prefer to buy the souvenirs and items from
well-known shops.

28

6.1.4 SWOT analysis

In addition, the SWOT analysis is used to help us to determine our marketing

strategies. The SWOT stands for Strengths, Weaknesses, Opportunities, and also Threats.

Strengths

Weaknesses

Quality products.

Well and efficient sales distribution

Online presale

Wide extensive network

Reasonable prices

Our partners have experience in business environment.

Delivery service.

Choocoby is a new company, thus it needs time to develop its

reputation.

Opportunities

Choocoby is an existed business, thus there are many competitors.

Lack of starting funds.

Short business operating hours.

Able to get supplier who offer low price and high quality products.

Strategic project location (location with high traffic).

A systematic marketing strategy.

Cooperate with other event organizers.

Provide good services to satisfy every customers.

29

Threats

Threat from other groups of MGMs students who might sell the same
products.

Threat of substitute product from other competitors.

The products might not attract many customers.

The business might not gain profit.

30

6.2

Marketing Strategy

6.2.1 Product

Our products mainly comprises of food product item. Since our main target of
customers are the university students who are always stay up for study hence our product is
the most suitable product for them. This is because, student that always stay up always
craving food to make them to still stay up. Besides that, our product also gives our customer
satisfaction when they eat it especially to people who really love chocolate. This is because
our product is mainly build from chocolate flavor with different topping. Our product also
worthy to buy due to their content is full in one jar and it last in longer time even already
open it. Apart from that, our product is easy to bring to eat everywhere due to their medium
size.

6.2.2 Pricing

Our products are also priced at a very considerably affordable and reasonable rate
given that our main customers are merely university students, so its safe to assume that these
students will not be willing and able to spend too much on these. Furthermore, we do give
promotions or lower prices to customers who purchase few items of the same kind.
Moreover, actually we somehow managed to sell our items at quite of a low compared
outside market price. This would be definitely give us an edge since our cost price are low,
therefore we able to profit more from our sales later. However, some of the customers asked
for offer, but it is difficult for us to lower down the price as we only earn low profits.

31

6.2.3 Place

We did our sales in various strategic locations in the university. Sales can be done not
only in different faculties but also in various dorms and colleges throughout the whole
universities. Sales are also targeted in places which normally have a good crowd such as in
cafes, balcony of college and also college event. Initially, we only fix our business location at
college dorm. However, due to not so many student want to buy it if we stay in college dorm,
thus we start to sell our items to our course mates and lecturers instead of just setting in one
location. Besides that, our products also sell in latest carnival.

6.2.4 Promotions

Mainly the publications of our sale are spread through word of mouth especially to
friends. Also flyers are also given out to students when promotions of our sales are done in
certain locations such as in the college event. Posters to introduce our sales and unique
products are pasted in designated places like in college bulletin board. Our promotions are
also publicized through social network like Twitter and Facebook due to the trend now is
more selective addition of buying over the internet , they argued that the time to buy can be
accelerated and simplify the buying process. However, the Facebook page did not receive
expected respond from the crowd. Besides, the flyers and posters also did not receive any
response from the people. Hence, we try to approach people and promote one by one.

32

6.3

Publicity Strategy

Business promotion is an integral part of any businesss success, as it is through

promotion that a business expands its customer and opens new window of opportunity. There
are many ways to promote a business.

Our promotion strategies are mostly focus on

advertising. Advertising is the best way let the public to know our company and product. We
created a company logo which based on our company name Choocoby.

Then we designed and printed out some promotion poster. The poster were put on
some hotspot like colleges, faculties, food courts, bus stop, and those places which are
crowded with people as well. We also distributed some flyers at highly-populated area to
attract customers and aware of our products. Not only that, we also set up a booth to promote
create publicity among students especially during certain events like Cultural Night and
entrepreneurship carnival in Universiti Putra Malaysia.

Secondly, internet is one of our promoting tools. We make use the advantages of
internet to promote our business online. Since most of the people have a Facebook account,
we are going to create a Facebook Page to gain public recognition as well. We kept our page
updated with new products and different promotion as well. It is the easiest and fastest way to
promote our business.

Then, we targeted on potential buyers among our friends, family, course mates and
roommates too. This can help to expand our business as networking is an effective form of
business promotion too. We will persuade them to buy our products and it may inspire them
to spread the word about our business.

33

We choose our company name as Choocoby as it is suited to our products. And it

can be easily understood by the public as well. Our logo creates a brand image for our
company too. We will place our company logo in brochures, poster or even online to gain
popularity.

Other than promoting our products, we gave out promotion like buy five free one
and delivery service. This attracts more customers as well. Besides, our company is running
in 24 hours. Therefore, our customers can choose their favorite topping and we will delivery
it anywhere and anytime they want. This is going to be the best selling point of our company
compared to other competitors which only provide delivery service in limited time.

34

7.0

FINANCIAL ANALYSIS

7.1

Start-up Funding

Being a partnership, each partner has contributed an equal amount of RM 68.00. Thus, the
total owners capital is calculated as below:

Owners capital = RM 70.00 x 4 = RM 280.00

Capital

Investment

Total (RM)

Owner

280.00

Investor

0.00

Additional Investment Requirement

0.00

Total Investment

280.00

So, Total Capital = RM 280.00.

35

7.2

Record Expenses

Expenses

Quantit

Cost per

Total

Variable

Fixed

Expense

Expense

Unit

Cost

Expense

Expense

s (Cash)

s (Non-

(RM)

(RM)

cash)

Marketing
Cost
Flyers

100

0.02

2.00

Poster

25.00

25.00

5.00

5.00

Oreo flavor

12

4.50

54.00

M&M

12

4.50

54.00

12

4.50

54.00

12

4.50

54.00

Rental
Premises
Product
Cost

flavor
Snickers
flavor
Cornflakes
flavor
Total

248.00

36

216.00

32.00

216.00

32.00

7.3

Record Sales

Week 8

Product

Quantity

Unit

Total

Unit Cost

Total

Profit

Sold (Unit)

Price

Sales

(RM)

Cost

(RM)

(RM)

(RM)

(RM)

Oreo flavor

6.50

19.50

4.50

13.50

6.00

M&M flavor

6.50

26.00

4.50

18.00

8.00

Snickers

6.50

13.00

4.50

9.00

4.00

6.50

6.50

4.50

4.50

2.00

45.00

20.00

flavor
Cornflakes
flavor
Total

10

65.00

37

Week 9

Product

Quantity

Unit

Total

Unit Cost

Total

Profit

Sold (Unit)

Price

Sales

(RM)

Cost

(RM)

(RM)

(RM)

(RM)

Oreo flavor

6.50

32.50

4.50

22.50

10.00

M&M flavor

6.50

39.00

4.50

27.00

12.00

Snickers

6.50

19.50

4.50

13.50

6.00

6.50

19.50

4.50

13.50

6.00

76.50

34.00

flavor
Cornflakes
flavor
Total

17

110.50

Week 10

Product

Quantity

Unit

Total

Unit Cost

Total

Profit

Sold (Unit)

Price

Sales

(RM)

Cost

(RM)

(RM)

(RM)

(RM)

Oreo flavor

6.50

6.50

4.50

4.50

2.00

M&M flavor

6.50

13.00

4.50

9.00

4.00

Snickers

6.50

26.00

4.50

18.00

8.00

6.50

19.50

4.50

13.50

6.00

45.00

20.00

flavor
Cornflakes
flavor
Total

10

65.00
38

Week 11

Product

Quantity

Unit

Total

Unit Cost

Total

Profit

Sold (Unit)

Price

Sales

(RM)

Cost

(RM)

(RM)

(RM)

(RM)

Oreo flavor

6.50

19.50

4.50

13.50

6.00

M&M flavor

6.50

4.50

Snickers

6.50

19.50

4.50

13.50

6.00

6.50

32.50

4.50

22.50

10.00

49.50

22.00

flavor
Cornflakes
flavor
Total

Total Net Sales

11

71.50

= RM 65.00 + RM 110.50 + RM 65.00 + RM 71.50

= RM 312.00

Total Cost

= RM 45.00 + RM 76.50 + RM 45.00 + RM 49.50

= RM 216.00

Total Profit

= RM 20.00 + RM 34.00 + RM 20.00 + RM 22.00

= RM 96.00

39

7.4

Project Balance Sheet

Project Balance Sheet (beginning of business).

Choocoby
Project Balance Sheet
Description

RM

RM

Assets
Non-current Assets

0.00

Current Assets
Cash

280.00

Total Assets

280.00

Equity and Liabilities

Liability
Current Liability

0.00

Non-current Liability

0.00

Total Liability

0.00

Owners Equity
Capital

280.00

Total Equity

280.00

Total Equity and Liabilities

280.00

40

Project Balance Sheet (closing of business).

Choocoby
Project Balance Sheet
Description

RM

RM

Assets
Non-current Assets

0.00

Current Assets
Cash

312.00

Total Assets

312.00

Equity and Liabilities

Liability
Current Liability

0.00

Non-current Liability

0.00

Total Liability

0.00

Owners Equity
Capital

280.00

+ Net Profit

32.00

Total Equity

312.00

Total Equity and Liabilities

312.00

41

7.5

Income Statement

Choocoby
Income Statement
Description

RM

RM

Net Sales
Oreo flavor

78.00

M&M flavor

78.00

Snickers flavor

78.00

Cornflakes flavor

78.00

312.00

(-) Cost of Sales

Oreo flavor

54.00

M&M flavor

54.00

Snickers flavor

54.00

Cornflakes flavor

54.00

Gross Profit

(-) 216.00
96.00

(-) Expenses
Marketing Cost
Flyers

2.00

Poster

25.00

Rental
Premises

5.00

Net Profit

(-) 32.00
64.00

42

7.6

Cash Flow Statement

From Week 8 to Week 11

RM
Capital

280.00

Total Sales

312.00

RM

592.00

Expenses

(-) 32.00

Cash flow

560.00
592.00

43

7.7

Financial Analysis

7.7.1 Net Profit Margin

Net Profit
100%
Income

RM 64.00
100%
RM 312.00

= 20.51%

7.7.2 Breakeven Analysis (Oreo flavor)

Total FIxed Cost

Unit Sale Price Unit Variable Cost

RM 54.00
RM 6.50 RM 4.50

27 units

7.7.3 Breakeven Analysis (M&M flavor)

Total FIxed Cost

Unit Sale Price Unit Variable Cost

RM 54.00
RM 6.50 RM 4.50

27 units

44

7.7.4 Breakeven Analysis (Snickers flavor)

Total FIxed Cost

Unit Sale Price Unit Variable Cost

RM 54.00
RM 6.50 RM 4.50

27 units

7.7.5 Breakeven Analysis (Cornflakes flavor)

Total FIxed Cost

Unit Sale Price Unit Variable Cost

RM 54.00
RM 6.50 RM 4.50

27 units

7.7.6 Return on Investment

Net Profit
100%
Capital

RM 64.00
100%
RM 280.00

= 22.86%

45

8.0

COMPLICATIONS AND CHALLENGES

8.1

Problems Encountered and Solution

In every business theres bound to be lots of obtacles and challenges throughout the
whole journey or process in not only setting up business but also to ensure the continuous
positive progress and earning of the business. As the saying goes, the beginning is always the
hardest and so we have faced numerous complications especially for the first two weeks in
doing our business. But as times passed, we have learnt from various experiences and
mistakes so as to overcome all the obstacles that is in our way in making a profitable and
successful business.

The key product of our business mainly food product. So, one of the main problems
we had faced is the food item itself. This is due to some people in our college sell the same
product. And so, this had essentially cut the numbers of our potential customers. Hence, when
we had realised this problems, we decided to extend and introduce our business and sales to
our fellow coursemated in classes. Not only that, but we were especially thrilled and pleased
when our lecturers themselves had shown interest in our goods and also supported our
business after they had caught wind of our business from other coursemates. And so, from
that onwards we had not limit our sales to anyone or to be confined to a very certain or
limited areas only, instead we continuously trying to expand our business operations in areas
or locations and acquiantances who has be potential to be our customers and so as to boost
our sales.

46

The second problem we had faced is of the concern of our transportation especially
when it comes to delivery our product to customer outside our business location. This is
because most of our member dont have transportation. Hence, to overcome this problem we
limited delivery service in certain area. If our customer outside our certain area, they have to
by more than five items to get the delivery service from our company.

Furthermore, we had also identified that our sales must be done in a suitable period of
time when not only everyone in the team would have the time to do the businesss sales
together but also the business must be done in suitable time in designated location when there
would be more crowd or in other words, more potential customers at that particular time. For
example, we had our sales introduced to the students by going to their room to sell our
product.

Moreover, initially we had the fear of selling our products in the colleges especially
because we had not the permission and the authorisation letter from the college authorities at
that time yet. However, this problem was immediately solved when we had received the
permission from the administrator of Kolej Sepuluh and Kolej Sebelas

Had not all these problems and obstacles we faced throughout the whole business
sales process being identified and counter, further positive progress in our sales will be rather
quite tough and impossible. However, as the saying goes "practice makes perfect" also with
the solid team work of our fellow enthusiastic team mates and the willingness to learn from
mistakes and past experiences of all, we managed to overcome every complications and
hurdles we faced in progressing our business sales with ease.

47

9.0

ETHICAL CONCERNS

9.1

Gains and Learning

There were countless things that we had learnt in this course. We will outline 6 points
that are significant and beneficial to our entrepreneurship in the future.

9.1.1 Exposure to Entrepreneurship

Throughout the whole learning process in MGM3180, we had learnt some soft skills
and equipped some knowledge as well. In this modernised world, many skills are needed to
become a competent entrepreneur. We have to be willing to risk ourselves through trial and
error in order to bring some creative and innovative ideas to be commercialised. These
aspects are very crucial for an entrepreneur to be recognised by the consumers and the
middlemen as well. Take for an example, variety of product choices were to be chosen by our
customers. We also provided free delivery service to the customers where the location of
delivery must be within our range of delivery such as Kolej Sepuluh and Kolej Sebelas, and
Faculty of Engineering. One of our customers bought and requested us to deliver to them at
12 a.m, where it was delivered successfully. This is because, our running time is 24 hours.
They can order our product event in 3 a.m. because, for us our customer is to precious to
ignored.

48

9.1.2 The Ability to Form a Business Planning

The ability to construct a plan in business is crucial because an organised plan can
save much time and reduce the chance for the plan to backfire. We should start planning our
own business plan as soon as possible once the discussion about the business nature is
finalised among the members. This is because opportunity must be held as early as we can
before it is gone forever.

Although business plan should be done early, we must also not forget to plan carefully
to avoid deficit after running the business. There are a few ways done by our group members
in creating a masterpiece such as:

Gaining more knowledge on our business nature of selling food

Understanding the demography and geography of our business location

Reading up the do and dont in setting up a business

Learning by mistakes from the past entrepreneurs

Sharing their working experience in the past

49

9.1.3 The Importance for having an Alternative Plan

We have actually faced many obstacles throughout our business. There were many
problems that can surface without our expectations. For example, there were not many people
buying our product since they already bought from other people that selling the same product.
So we sometimes brought our products to the class and let our classmates to choose. The
responses are overwhelming as most products somehow match with their likings. Besides, we
also brought it to our department office for sale. The lecturers are very supportive with our
products and decided to buy a few our product.

Other than that, when the products did not sell well in certain days, we will make a
promotion such as Buy 5 Get 1 Free or 10% off to clear our products. Finding an
alternative is based on our creativity because nothing will come to us if we dont alter our
strategy during a bad time.

50

9.1.4 Communication Skills

Communication is very important throughout the whole process of business. It is an

inevitable skill as good communication skills enable us to communicate well, to express
ourselves clearly, to get our ideas across, and to connect with the person to whom we are
speaking, especially our customers and suppliers during the business. Communication can
make the difference between success and failure for a company. Good communication helps
ensure the efficient operation of all levels of an organization. For instance, the sales of
company can be improved if a worker with good communication skills interacts with
customers as he or she can easily persuade them to purchase the products. During the
business, we have built up our confidence to communicate with all kinds of people from
different backgrounds and this can actually improve our communication skills.

51

9.1.5 Business Teamwork

Throughout the whole business, we also built up the business teamwork among our
group members. Business teamwork is important because it enables companies to achieve
their goals quickly and efficiently. Companies set goals and these goals cannot be achieved
by one person. Members of a business need to work as a team. In other words, teamwork is
the collective performance of different individuals skilled at different activities in order to
fulfil a group goal or objective. This can improve the efficiency of a company. For example, a
person who is good in negotiating can contact with the suppliers in order to get the lowest
price for our selling products. Besides, with good business teamwork, all the members can
contribute to solve the problem that we encounter in the business and a solution will be found
in a shorter time. This is because everyone contributes by contributing ideas and different
tasks are assigned to different members. This makes the problem solving process progress
faster.

9.1.6 Honesty and Ethics

Furthermore, we also learned about honesty and ethics in doing business. In real
business world, the key to success is honesty. With capitalize honesty, people will believe in
us and continue to purchase our products. Besides, good reputation can be developed by
doing business with honesty and this can bring unpredictable profits in long term. For
example, we do not sell the products which are not in good conditions. Other than that, we do
not overprice our products as customers might not purchase our products again if they feel
that the product does not worth its price. Besides honesty, we must also work in a
professional manner, thus requiring anyone who we feel satisfied with what we are doing.

52

10.0

SUMMARY

It is a valuable experience for Choocoby in carrying out the business. Carrying our
business might be tiring but the experiences gained are worth. We always push ourselves to
be in great situation. We also gain a lot of knowledge in doing the business. During the sales,
we hold meeting to discuss about our business. In the meeting, each member gives their idea
to improve our method of selling. During the sale, we work together with each other in order
to succeed in our business. Although, we faced some problem in this activity, we are able to
solve the problems by working together. As results, Choocoby has archived its mission by
providing high quality snack with reasonable price.

All the members of Choocoby are willing to work together to carry out the bussiness.
Hence, the business ended with great sucess and smoothly. Moreover, the business admin and
managements seemed to be working functionable as the process of selling was carried out
smoothly. All the members put a lot of efford on it.

In marketing, strategies, members do their best in promoting the products. We also let
the customers to make a phone call to order the products that they wish to buy.

In conducting our business, there are several problems has existed. The main
problems we had faced is some people in our college sell the same product..We decided to
extend and introduce our business and sales to our fellow coursemated in classes. The second
problem we had faced is of the concern of our transportation. To overcome this problem, we
limited delivery service in certain area. If our customer outside our certain area, they have to
by more than five items to get the delivery service from our company.

53

There are many valuable lessons has been learned when carry out the business. We
have improve our communication skills. We also expose to entrepreneurship. In carrying the
business, we learn the ability to form a business planning, work as a team, palnning an
alternative plan, inhibit the value of honest and ethic.

In conclusion, our company Choocoby had done our businesss project well. At the
end, we are able to achieve the mission and vision of our company.

54