EMG3180 Business Report-Fianl

MGM3180 Basic Entrepreneurship

Blossom Craft Sdn Bhd

Business ReportGroup members:

Lecturer: Dr Husniyah Bt Abd Rahim

Date of Submit: 22 December 2011

Name Matrix numberWong Chiok Ling 148679

Lim Liting 148616Koh Li Juan 148730

Loo See Guan 149129Anis Fatina Mat Salleh 146731

Auji Nabilah Abdul Razak 150623Nur Hazirah ‘Aqilah Ramli 148744Nur Munirah binti Shafie 148208

1.0 EXECUTIVE SUMMARY

Blossom Craft Sdn Bhd is incorperated in Taman Sri Serdang, Selangor on 1 September

2011. This company consisted of 8 shareholders. Each of us has to invest RM30.00 in order

to operate the business. Our company has three department which is financial department,

markrting department, and operation & production department. Our managing director is

Wong Chiok Ling who is the head of the team member that lead us to plan, organize, and

control the business.

The company is dealing with brooches and shawls that have been shaped as rose flowers as

gifts for graduation students. We decided to sell shawls and brooches due to the high market

demand that based on our market survey. Due to season of the convocation festival, it bring

up the opportunity for us to do this business by selling unique rose flower shape of shawl,

we named it “Happy Rose” and set of brooches we named it “Blossom Brooch” . All of the

products are handmade; therefore it is unique, attractive and multifunctional.

The strength of creative and innovative of our team, we had made the high profit and

become best seller through our great market planning. Therefore Blossom Craft Sdn Bhd

gets the total revenue of RM612.70 by sold 30 happy rose and 44 brooches. This result of

business was under our expectation by getting the revenue of more than RM500.00 which

state at the proposal report. There are two ideally location for our product sold which is in

front of lobby faculty of Environmental Studies and the parking area of Kolej Tun Perak.

Besides that, we also use media to promote our product such Posters, Internet especially by

Facebook, interesting advertisement and so on.

We have also set the price of the product at the reasonable price and it is affordable. Thus

we decided set the price of our products for only RM16.90 per Happy Flower RM3.00 per 1

set of Blossom Brooches and RM5.00 for 2 set of Blossom Brooches. For Combo Set (1

Happy Flower + 1 set of Blossom Brooches), we set the price for only RM18.00. For the

strategies planning, we use SWOT analysis which is strengthen, weakness, opportunity,

threat. Through this SWOT analyses that help us plan well in order to achieve our goal and

target. Besides that, the implementation timetable also has been made as guidance for us to

implement the entire task with effectively and efficiency.

2.0 BUSINESS AND COMPANY BACKGROUND

Blossom Craft Sdn Bhd is incorporated in Taman Sri Serdang, Selangor on 1 September

2011. The company’s name was Blossom Craft Sdn Bhd because most of products in this

company based on the flowers shape. In addition, we made products in blossom concepts

because we want to bring the beautiful and nice elements of blossom to people life. Our

company slogan was “blossoming your day”. It means that when people buy our products,

their life will be cheerful. The company is dealing in decoration shawls or pashmina form

rose flowers for gifts graduation students. Actually, our main products are the pashmina or

shawls folded and made in rose shape (bouquet) and it also called Happy Rose. We called

this product as Happy Rose because the shape of the products in a flowers shape and then

happy refers to the something like the fresh flowers. Besides, we also sell flora (blossom)

shape brooches made from buttons. In addition, we provided the wishes card for graduation

students if people buy the Happy Rose. There are variety colors of Happy Rose such as red,

pink, yellow, purple, and others. It is two in one products and it is very unique products. It

is means that when people buy Happy Rose, they can give to the person that they want as a

gift such as graduation gift and the that person can open the Happy Rose and use it as

shawls for the women. Besides that, we have eight employees in this company. Each

employee has their own specific tasks in handling in this business.

Besides that, our vision is to become a global well-known company of creative and

innovative gift-based products. We always put more effort in decorate a creative and

innovative products because we want our product can get market in the globalization, one

day. Then, our mission is to share the exquisite element of blossom to others through our

lovely and creative products, and spread the spirit “life is all about wonderful”. It means

that when people buy our products, they might be thinking that our products company is so

creative and will make them life will be wonderful. That’s why we put our slogan as a

“blossom-ing your day”. Then, we have a few objectives such as we want to implement the

original business ideas in order to make high profit from our creative and innovative gift-

based products. We also want to fulfill the customer demand and desire on creative and

innovative gift products. Lastly, we want to enhance company competitive advantage by

continuously innovative various unique and creative products. We hope that our company

can get achieve all the goal setting that we have set together, one day.

3.0 OPERATION

3.1 Operational Plan

Task Execution Period

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6

Planning ∕

Production ∕

Marketing ∕

Sales ∕ ∕

Fig 1: A table showing an execution period on tasks that we did.

3.2 Organizational Structure & Staffing

Blossom Craft Sdn Bhd started with a total of 8 people overall including the Director.

(Please refer to our organization chart)

3.3 Professional Advisor

Dr. Husniyah Abd. Rahim @ Abd Wahab who also lecturer for group 26 course MGM3180

Basic Entrepreneurship.

3.3 Business premises

Blossom Craft had done the production activity in one of our members place. This is due to

the place is free as we don’t need to pay for a rent. The production activity is taken place at

Taman Sri Serdang which is so close to the business place, Universiti Putra Malaysia

(UPM).

Blossom Craft Sdn Bhd has started it business in two places:

1. The booth in front of Faculty of Environmental Studies. (Morning session)

2. The booth at Kolej Tun Perak. (Residential college for night session)

3.4 Facilities and Equipment

As we are doing all the items by handmade, so we don’t really need a facilities. We just

need a few equipments such as:

1) Shawl

2) Needle

3) Wrapping material

4) Glue gun

5) Buttons

6) Paper

7) Pin

All these items are needed to produce our product which is Happy Rose and Blossom

Brooch.

3.5 Production and processes

In order to produce happy rose, we need to do it by hand made. So no mass production

because it is a craft product thus it is time consuming. So we really need a person who can

creatively design the shawl until it becomes a rose. A special skill is requires and only

certain people can do it. In our team, Ms Koh Li Juan guided other members to learn and do

it at the same time. Finally, we had produced 30 unit of Happy Rose with different colors

for each.

In another situation, to make a Blossom Brooch, it is really consume time as we have to sit

down and create a brooch by arranging the buttons and then stick it together nicely using

glue. It may take time but this one doesn’t really need a skill to do it so we can use a lot of

man power which is all the members in the team to produce it. There are 3 different sizes

for each set that we are going to make which is small, medium and large. All those three

have a similar design and color. After that we had to pack it up in small transparent plastics

so that it will be protected and easier to take a look at. We successfully produce 44 sets. All

the product took about 4-5 days of production and all of our teams have to have a good

collaboration to make this project a success.

3.6 Contingency plan

As this is only a small project, so we have developed a small contingency plan. We had

discussed among teams on what we have to do if there is an emergency happen and so on.

This has to be incorporate from procurement, production, sales, and security.

For example, at the first stage of our production we try to minimize our production which is

we produced about 20 Happy Rose first because we want to test out the market. This is also

to avoid over producing.

We also experienced slow stocks sale rate for Blossom Brooch so we decided to go door to

door sale services at Kolej Tun Perak which is a residential college in Universiti Putra

Malaysia. By using this method, customers have more time to get to see properly on our

products and try them on. In the end, we manage to increase the sales rate.

4.0 MARKETING

4.1 Market research

Before we started doing our business, we had done some research on what kind of thing that

suitable to be sold among the UPM student especially during the graduation days. Finally,

we agreed to sell shawls and brooches because of great interest to women especially the

UPM students.

Shawl is a square or oblong piece of cloth worn as a cover for the hair, neck, and shoulders.

However, shawl is not only being used by Muslimah to cover their hair. Those Indian and

Chinese or any other races can use the shawl as well where they can use it to warmth

themselves or for their style. Therefore, we choose to sell the shawl and brooches at UPM

Convocation Festival since there are many visitors whereby they could buy the shawl

(which already designed like a bouquet of rose – Happy Flower) and give it to their friends

or relatives who graduate on that day. To make the shawl (Happy Rose) become more

unique and perfect, we included 1 set of brooches (Blossom Brooch) for each Happy Rose

and sell them (Happy Rose & Blossom Brooch) as a package where will be more

economical.

4.2 Market analysis

a) Industry trend

As we can see, there are so many shops and vendors out there who sell shawls. Almost

every shopping complex has at least 5 small shops which sell shawl as their main business.

However, they only sell the exact condition of the shawl without any modification.

b) Seasonal variations

Nowadays, shawl seems being a high interest to women either they in career or not. As we

can see out there, 1 out of 5 women wear shawl either to cover her hair or as her style. To

conclude, almost each woman has shawl in her closet. Shawl spread rapidly since 2010.

Shawl before reproduction Shawl after reproduction

Button before modification Button after modification

Besides that, this product will become more popular during Hari Raya among the Malay

women. There are various types of shawl such as, shawl jojet, shawl satin, silver bread

(manik) shawl, cotton shawl, plain plead shawl and others. In addition, it sold at an

affordable price (RM8 above).

c) Competitors

Since we choose to sell the product during the convocation festival, of course there will be

many vendors who sell shawls as well. In fact, shawl that being sold by them had more

choices and colors rather than our products.

d) Potential strategic allies

We have not decided to collaborate and corporate with any other company or party to

expand our business since we prefer to expand our business on our own.

e) SWOT analysis

i. Strength – our strength is we designed our shawls to be rose alike and sell them in

combo/package together with the Blossom Brooch. Therefore, it will be easy for the

customer where they do not need to buy brooches from other vendor in order to

match with their shawl since the brooches (Blossom Brooch) that we sell for

combo/package is already match with the shawl. In fact. The brooches are very

unique, creative and limited in the market since they were made from the t-shirt’s

buttons. Not only for the Blossom Brooch, the Happy Rose that we sell is also

creative, unique, beautiful and attractive since we are the only company who sell

this Do It Yourself (DIY) product (gift) which made from a shawl. This Happy Rose

is a multipurpose product whereby we can use it as souvenir, gift or even can use it

directly as a shawl to cover hair or as a warmer. Besides that, with an expert person

in making the shawl to be rose alike in our organization, we can make the product

easily and perfectly which can also considered as one of our strength. Because of the

high demand and good marketing strategies that we have done to promote our

product, we only took less than 2 weeks to sell all Happy Rose and the 80% of the

Blossom Brooches.

ii. Weakness – We need to convince our customer that our products are very suitable

to be used as a convocation gift. In addition, our customer target is not really

balance since this product is more suitable for women rather than men. We also have

only one expert in making the Happy Rose where could affect the productivity of

this product. Besides that, these products (Happy rose and Blossom Brooch) are time

consuming since we need to do them slowly and give full concentration in order to

make the product perfectly. Moreover, the short period and the limitation of time for

running this business activity have made we cannot produce more product and do

some more marketing strategies which can boost our business more.

iii. Opportunity – Since we are the creator and innovator of this product (Happy Rose)

and there is no other party who had done the same thing, we could expand our

market more to the outsider, not only among the UPM students. In addition, we were

very lucky because we can run our business during the convocation day where this

product’s demand is higher than during the usual time. There were lots of visitors

which gives meaning that we can have a lot of customers as well. Moreover, our

products are easy to carry, so we can just walk around and sell them to the customer.

In fact, the delivery process also as easy as ABC whereby we can use ‘free delivery

services’ as one of our marketing strategies. In fact, this product can fulfill

preferences of customer’s searching for innovative product. The advance technology

such as Facebook, Blogs had give opportunity for us to promote or product without

any cost. By having these kind of advertisement, we can let public know our

products more and those who have interest with our product can make reservation

before they self-take or we deliver the product to them.

iv. Threat – Product design might be imitated by other party because there is no Happy

Rose been made and sold before. We are the first creator and inventor of this

product. In addition, we have to compete with the florists who sell many real flowers

and other kind of gifts for convocation. In fact, the florists sell many bouquets of

flowers with different design and they usually give many discounts for their product

especially at the end of the convocation festival.

4.3 Marketing plan

a) Products/services and target market

Our target market is women among students, housewives, career person and also teenagers.

Besides that, men can be our customer as well where they can buy the Happy Rose for their

girlfriends. These products can also being used as a gift for convocation day. In addition, we

have our own delivery service to make our customers feel more satisfied and comfortable.

b) Placement

Booth A – In front of lobby faculty of Environmental Studies

Figure: Placement of Booth A

Booth B – Parking Area, Kolej Tun Perak

Figure: Placement of Booth B

4.4 Marketing Strategies

a) Poster

b) Promotion via internet application (Facebook)

c) Video advertisement

d) Pricing Policy

We decided set the price of our products for only RM16.90 per Happy Rose and RM3.00

per set of Blossom Brooches. For Combo Set A (1 Happy Flower + 1 set of Blossom

Brooches), we set the price for only RM18.00 while RM5.00 for Combo Set B (2 sets of

Blossom Brooches)

4.4 Evaluation of marketing

The reason why we choose electronic media such as Facebook is because public can access

to Facebook easily. Therefore, publics can know our product better and two way

communications can be done easily if the customers have some inquiries of the products.

In addition, Facebook nowadays is a mandatory asset to all UPM students and almost every

day they will check their Facebook to see if there is any latest information. In fact,

Facebook is a fast, easy and cheap medium to promote our products and easy to get

customers by using this electronic media. There are also no costs if we use Facebook to do

promotion. We can chat and talk with each other without any boundary and also an

application with no have limitation in time, so that people will feel more comfortable.

Other method that we used in promoting our product was by using poster. Poster is quite

good as well where we can easily it at the faculties and colleges so that the students can

easily look and consider as whether to but it or not. However, poster have less information

of our products and the two way communications is very bad whereby the customer need to

call us first in order to know more about the product. This will sometimes affect of our

marketing strategies because the probabilities of those who have interest to buy the product

at first can change their mind to not buy the product since they get less information of that

product. They sometimes will refuse to give a call to ask about the product as this will cause

them pay the cost of calling us. Moreover, poster advertisement also needs cost in term of

the printing process. In order to produce more attractive poster, we need to make the poster

more cheerful with many colors so that it will attract the customer easily. However, the

color printing of the poster is very costly. We already had our own budget for the marketing

process. Therefore, we only use poster as our second alternative in promoting our product.

We also add up the advertisement in marketing strategy to make people know what

‘HAPPY ROSE’ is. The advertisement shown a boy gives the HAPPY ROSE to his

girlfriend and make her happy with that gift. That means it is one of the way to apply the

HAPPY ROSE by giving to another people especially someone that close with us. Our

customers need only 5 minutes to watch our short video advertisement. In order to improve

our weakness in promoting and marketing our products, we try to convince our customer

that our product is totally suitable to be used as a convocation gift. We did mention to them

that our product (Happy Rose) is long-lasting as compared to the real bouquet of roses sold

by the florist.

The marketing strategies that we done have successfully attract customers among the UPM

student. We only took less than 2 weeks to sell all Happy Rose and the Blossom Brooches.

The strategy that we will do if the demand of our product decreasing is we will try to

promote this product to the outsider (not only among the UPM students) as our contingency

plan. Besides, we will try to sell the product through vend them from door to door at all

UPM colleges. Through this strategy, the customer will get clear information of the product

and soon can make the product become more famous and well-known.

5.0 FINANCIAL

5.1 EXPENSES RECORD

5.1.1 Production Expenses

Item Quantity (Unit) Price (RM)

Production Expenses

Transportation fee - 8.00

Electricity - 1.50

Miscellaneous - 2.40

11.90

Marketing Expenses

Photocopy (Advertisement) - 3.00

3.00

Direct Material (Happy Rose)

Needle 2 3.00

Ribbon 3 9.00

Wrapping Material 2 12.00

Paper 2 1.50

Shawl 30 135.00

160.50

Direct Material (Brooch)

Button 4 packets 18.00

Pin 2 packets 9.50

Glue 3 2.40

29.90

Total Expenses: 205.30

5.2 SALES RECORD

5.2.1 Sales on 6 October 2011

Item Price per unit Quantity Sales Total Amount (RM)

Happy Rose 16.90 6 101.40

Happy Rose (Combo) 18.00 2 36.00

Brooch (set 1) 3.00 2 6.00

Brooch (set 2) 5.00 3 15.00

Total: 158.40

Blossom Craft Sdn Bhd sold the happy rose at the price RM16.90 per unit while combo is

RM18.00. There were 6 units of happy rose sold and 2 units of happy rose combo sold in

discount price which is RM18.00 each. The brooch is sold at RM3.00 for set 1 and discount

price is set 2 which is RM5.00. There were 2 units sold for set 1 and 3 units for set 2. The

total revenue is RM158.40.



Happy Rose 16.90 4 67.60


Brooch (set 1) 3.00 2 6.00

Brooch (set 2) 5.00 3 15.00

Total: 124.60








Happy Rose 16.90 4 67.60


Brooch (set 1) 3.00 1 3.00

Brooch (set 2) 5.00 0 0.00

Total: 88.60




price is set 2 which is RM5.00. There were 1 unit sold for set 1 and none for set 2. The total

revenue is RM88.60.



Happy Rose 16.90 3 50.70


Brooch (set 1) 3.00 2 6.00

Brooch (set 2) 5.00 2 10.00

Total: 84.70








Happy Rose 16.90 4 67.60

Happy Rose (Combo) 18.00 - -

Brooch (set 1) 3.00 3 9.00

Brooch (set 2) 5.00 2 10.00

Total: 86.60


RM18.00. There were 4 units of happy rose sold and none of the happy rose combo is being

sold in discount price which is RM18.00 each. The brooch is sold at RM3.00 for set 1 and

discount price is set 2 which is RM5.00. There were 3 units sold for set 1 and 2 units for set

2. The total revenue is RM86.60.



Happy Rose 16.90 2 33.80


Brooch (set 1) 3.00 1 3.00

Brooch (set 2) 5.00 2 10.00

Total: 64.80


RM18.00. There were 2 units of happy rose sold and 1 unit of happy rose combo sold in


price is set 2 which is RM5.00. There was 1 unit sold for set 1 and 2 units for set 2. The




Happy Rose 16.90 - -

Happy Rose (Combo) 18.00 - -

Brooch (set 1) 3.00 - -

Brooch (set 2) 5.00 1 5.00

Total: 5.00

The happy rose had been sold finish on 16 October 2011 and only leaves 2 set of brooch.

The brooch is sold at RM5.00 for set 2. The total revenue is RM5.00.

5.3 SUMMARY OF TOTAL SALES

Date

Unit of Product Sold

Total Amount

(RM)

Happy Rose

RM16.90

Happy Rose (Combo)

RM18.00

Brooch

(set 1)

RM3.00

Brooch

(set 2)

RM5.00

6 October 2011 6 2 2 3 158.40

12 October 2011 4 2 2 3 124.60

13 October 2011 4 1 1 - 88.60

14 October 2011 3 1 2 2 84.70

15 October 2011 4 - 3 2 86.60

16 October 2011 2 1 1 2 64.80

17 October 2011 - - - 1 5.00

Total Sales: 23 7 11 13 612.70

Blossom Craft Sdn Bhd has sold 30 happy rose and 44 brooches. The total revenue is

RM612.70.

5.4 PROFIT AND LOSS STATEMENT BUSINESS TO FORECAST

BLOSSOM CRAFT SDN. BHD.

Profit and Loss Statement for 31 October 2011

Total Sales RM597.00

less: Cost of Goods Sold (RM185.00)

Gross Profit RM412.00

less: Expenses (RM14.90)

Photocopy RM3.00

Transportation fee RM8.00

Electricity RM1.50

Miscellaneous RM2.40

Net Profit RM397.10

5.5 PROFIT AND LOSS STATEMENT AFTER RUNNING THE BUSINESS


Profit and Loss Statement for 31 October 2011

Total Sales RM612.70

less: Cost of Goods Sold (RM190.40)

Gross Profit RM422.30

less: Expenses (RM14.90)

Photocopy RM3.00

Transportation fee RM8.00

Electricity RM1.50

Miscellaneous RM2.40

Net Profit RM407.40

5.6 BALANCE SHEET BUSINESS TO FORECAST


Balance Sheet for 1 October 2011

Current Asset: Long-term Liability

Cash RM240.00 Loan RM0.00

Owner Equity:

Capital RM240.00

RM240.00 RM240.00

5.7 BALANCE SHEET AFTER RUNNING THE BUSINESS


Balance Sheet for 31 October 2011

Current Asset: Long-term Liability

Cash RM647.40 Loan RM0.00

Owner Equity:

Capital RM240.00

Net Profit RM407.40

RM647.40 RM647.40

5.8 CASH FLOW STATEMENT

Cash inflows :

From sale of goods

Cash outflows :

To supplier of goods

Cash generated from operations

RM

612.70

(190.40)

422.30

5.9 FINANCIAL ANALYSIS

Total Sales RM 612.70 100%

less: Variable expenses RM 190.40 31.08%

Contribution margin RM 422.30 68.92%

less: Fixed expenses RM 14.90

Operating income RM 407.40

Markup percent (Happy Rose) = (selling price – total cost) / total cost

= (RM 16.90 – RM 5.55) / RM 5.55

= 204%

Markup percent (Brooch) = (selling price – total cost) / total cost

= (RM 3 – RM 0.88) / RM 0.88

= 241%

The 2.05 % of the cost price adds on to get the selling price of RM 16.90 for the Happy

Rose not include the selling price of combo and 2.41 % of the cost price adds on to get the

selling price of RM 3 for one set of button brooch not include the selling price of combo set.

5.10 GROSS PROFIT MARGIN

The gross margin is not an exact estimate of the company's pricing strategy but it does give

a good indication of financial health. Without an adequate gross margin, a company will be

unable to pay its operating and other expenses and build for the future

Gross Profit Margin

Gross Profit Margin (Sales from 06/10/2011 – 17/10/2011)

The gross profit margin ratio tells us the profit a business makes on its cost of sales, or cost

of goods sold. The gross profit tells an investor the percentage of revenue or sales left after

subtracting the cost of goods sold. Blossom Craft Sdn. Bhd. has a gross profit margin of

68.92% from the 7 days of sales and it would retain RM0.6892 from each ringgit of revenue

generated, to be put towards paying off expenses.

5.11 NET PROFIT MARGIN/ OPERATING MARGIN

Net margin measures how successful a company has been at the business of making a profit

on each ringgit sales. It is one of the most essential financial ratios. It is a measurement of

what proportion of a company's revenue is left over after paying for variable costs of

production such as wages, raw materials, etc. A healthy operating margin is required for a

company to be able to pay for its fixed costs, such as interest on debt. The higher the ratio,

the more effective a company is at cost control. With net profit margin ratio all costs are

included to find the final benefit of the income of a business.

Net Profit Margin

Net Profit Margin (Sales from 06/10/2011 – 17/10/2011)

Blossom Craft Sdn. Bhd. has a net profit margin of 66.49% from the 7 days of sales and this

mean we has RM 0.6649 of net income for every ringgit of sales.

5.12 RETURN ON EQUITY

Return on Equity = Net profit / Owner Equity

= RM 407.40 / RM 647.40

= 63%

5.13 BREAK EVEN POINT

Total variable cost = RM 160.50 + RM 29.90

= RM 190.40

Total unit produce = 30 unit + 44 unit

= 74 unit

The variable cost per unit (Happy Rose) = RM 160.50/ 30 unit

= RM 5.35

The variable cost per set (Brooch) = RM29.90/ 44 set

= RM 0.68

Total fixed cost = RM 11.90 + RM 3.00

= RM 14.90

Total fixed cost per unit = RM 14.90/ 74 units

= RM 0.20 per unit

Break even point (in units) = Fixed cost / Unit contribution margin

= Fixed cost / (Sales – variable cost) per unit

= RM 14.90 / (RM 8.28 – RM 2.57)

= 2.609 ≈ 3 units

Since we produce two different products, which mean we have two product lines. So, we

use Contribution Margin Method to calculate the break even point. The Contribution

Margin Method as above is suitable in situations where a company has multiple products

lines and wishes to compute a single break even point for the company as a whole.

Break even point for Happy Rose (in unit) = Fixed cost / (unit selling price – variable cost)

= RM 14.90 / (RM 15.50 - RM 5.35)

= 1.47 unit ≈ 2 units

Breakeven point for Brooch (in unit) = Fixed cost / (unit selling price – variable cost)

= RM 14.90 / (RM 2.50 - RM 0.68)

= 8.19 unit ≈ 8 units

There are 2 units of Happy Rose need to sell for recovered the costs (fixed cost and variable

cost) associated with producing product of Happy Rose while 8 units of Brooch need to be

sold to recover the costs of producing one set of Brooch. For overall, there 3 units of the

product lines need to be sold to recover all the costs of producing Happy Rose and Brooch.

6.0 IMPLEMENTATION OF BUSINESS ACTIVITIES

The business period is from 6 October 11 to 18 October 11.

There are 8 main stages for the business activities.

The first stage is planning. Everyone in the organization involved in this stage to generate

ideas for business product. Initial product ideas are shawl rose, button brooch, second hand

accessories and recycled paper card or book mark. We found our business opportunity

which can sell our products as convocation gift and there is no competitor which sell similar

product with us. At last, we chose the shawl rose and button brooch as our main products.

Besides, we need modal to start our business. All members agreed to contribute RM30 as

modal. Thus, the total modal for our business is RM240.00. We also planned for our

marketing strategies at this stage. We forecasted our shawl rose product can get popularity

because it is unique, presentable and affordable for university students; and we figured out

to present along with a hand-made, simple but nice card to add the sale attractiveness of our

shawl rose product. In addition, our marketing strategies include poster and promotion via

online. Besides, we also planned to release combo package which is more cheap and

“worth” to attract customer. The combo package includes 1 shawl rose and 1 set of 3 button

brooches in cheaper price. Then, we planned to walk, promote and sell our products during

convocation period.

The second stage is licensing and authorized approval which in charged by our

organization’s secretary. There are 2 official letters we needed to have which are first is the

acknowledgement letter from our MGM3180 Basic Entrepreneurship lecturer, Dr. Husniyah

bt Abd Rahim to prove that we are doing the business for course requirement; and the

second is the approval letter from the sales venue authority. We planned to have 2 booths;

morning session at the front of Faculty of Environment Studies, which is the path for

students who want going to Sri Serdang will pass-by while night session the booth located

at Kolej Tun Perak (KTP), near to Putra food court.

The third stage is procurement of materials which include shawls, ribbons, wrapping paper,

buttons, glue, etc. The materials bought on the date of 1/10/2001. Most materials bought

from Kohinoor Industries (M) Sdn Bhd and Syarikat Bunga Reben Sdn Bhd. Some

equipment such as scissors and glue gun we either borrow from friends or use our personal

stuffs.

Next is the production stage. Since we have 2 products, so we had 2 production line. For the

production of shawl rose, our operation manager, Koh Li Juan guided us the technique and

skills to make the shawl rose. The various color shawls folded into rose shape and packaged

into bouquet. We produced 30 of shawl roses. For the production of button brooch, the

brooches are made from various colors buttons into blossom shape. The brooches can be

used to buckle Muslim women headpiece, as brooch or accessories. We produced 44 sets;

each set contains 3 different size brooches.

After that is the implementation of marketing strategies. We have 2 main promotion

techniques which are poster and online promotion via Facebook. The poster is decorated

with fancy and cheerful colors. Our products pictures are showed in the poster, price stated

and promote with combo package which is cheaper and worth. The date, time and venue of

our booths also stated in the poster. The poster is placed at our booths to attract customer.

The reason we choose online promotion via Facebook is because we found this is the fast,

convenient, cheap and high coverage of target respondent (UPM student) way.

Then is the stage of sales and marketing. As we planned, we had pre-sale before

convocation and sales during convocation. Before convocation, we had 2 fixed booths,

which are in front of Faculty of Environmental Studies and Kolej Tun Perak. During

convocation period, we separated to 2 groups (each group 4 persons) to walk, promote and

sell our products near to the main hall area. All members in the organization took part in

this stage.

The last stage is the follow up of the sales record, accounts and business report. Every sale

has been recorded at the printed table form for traceable. Then, our Finance Manager, Lim

Liting handled the accounts from the beginning to the end of the business.

We successfully sold out all of our products and get net profit as much as RM407.40

7.0 BUSINESS EXPANSION

Besides the product mix of Happy Rose and Blossom Brooch, we have few ideas to expand

our blossom concept business.

First is by using different materials such as satin cloth, tudung, shawls with tone colors

rather than singer color shawl or pashmina, we can produce different style or types of

Happy Rose.

Second, we also think that we can open market for man. Since man rarely use shawl but

they use handkerchief, so we might produce handkerchief blossom gift set for man.

Third, we can release a new combo package named “Happy Rose Trio”. This package

having 3 happy roses which symbolize the meaning “I love you”, with the combo price

RM45.70 instead of original price RM50.70, thus save money for RM5.

Lastly, we have the idea to make small Happy Rose by ribbon and make to rose shape, then

make it into brooches. We are sure that this product is look nice and can get popularity from

female customers.

8.0 CONCLUSION

Through this entrepreneurship subject, we get the real experience to become entrepreneur.

Besides that, it is good opportunity for us to learn how to create our own business and

managing our business as well as making high profit from our business. In the whole

process, we have to cooperate well with each other in order to meet our objective. Hence,

we always have a discussion through the meeting and solving the problems that we faced

together. The four elements that is essential in the whole processes which are planning,

organizing, leading and controlling. Furthermore, we used our creativities and innovative in

producing unique products that resulting high demand and eventually create profit from

business. We show highly appreciation to each other’s contribution to this business. We

would also like to thank our beloved lecturer Dr Husniyah Bt Abd Rahim for leading and

guiding us along the way. Finally, this is really good bitter sweet experience in our

university life.

9.0 APPENDIX

- put our presentation slides

-poster

-receipts copy

-auji ang hezy certificates (if have)

Documents

EMG3180 Business Report-Fianl