Task Two- Enterprise

8/17/2019 Task Two- Enterprise

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Tanyash Dubey

Lancers International school

Centre number: IN690

Candidate number:0023

Syllabus code:044

Syllabus title: !nter"rise

Tas# t$o: %lannin& the

"ro'ect

1


2/22

%ur"ose: to clarify what resources are required to reach the goal, formulate a timeline for when specictasks need to be completed and determine what resources are required.

(ction %lan )im"act o* the "roblem in outcome+

Task Time expected People

responsible

Date expected for completion Monitoring Outcome

Carry out the

market research

3 days Tanyash

Dubey

(myself)

!"#!$3 % &as gi'en the duty of

carrying out the

uestionnaire throughout the

school % had prepared a

register in &hich % &as

noting do&n theuestionnaire gi'en and

uestionnaire recei'ed

The market research &as

successful Therefore &e

&ere able to identify

consumer*s needs and

&ants both no& in future

This helped us to identifythe market gap and due to

this &e &ere prepared for

changes in consumers

demand

Prepare a

presentation

days Tanyash

Dubey

(Myself)

$$!"+!$3 ,imit &as double checking

the presentation once to

check the uality of the

presentation and gi'e his

feedback and as the needaroused % edited my

presentation further

There &as a delay in the

preparation but later on

Teachers &ere impressed

&ith my presentation and

the results &ere 'ery good

They &ere impressed bythe presentation

Permission for

stalls

days Tanyash

Dubey

$-!"+!$3 Permission to be organi.ed

before the dead line %

reminded our head of school

e'ery day and reuested him

to hurry the process a bit

There &as a delay because the

laptop in &hich &e prepared the

presentation picked up some

problem and hence it had gone

for repair &ork /o&e'er later

on 0 0greement &as reached

granting us the space reuired

and permission for stalls by hod2


3/22

Produce result

for meeting

days ,imit

Maha1an

$!"+!$3 ,imit &as responsible for

keeping a track of the

meeting and he collated the

result

Deadlines &ere met

2aising

appropriate

finance

$- ,imit

Maha1an

!+!$3 Our aim &as to raise 2s4"""

to monitor this fund raising

&e decided to keep an

account &hich &as daily

updated &ith the fund raised

The school preponded the

fundraiser e'ent that left a

'ery little time &ith us5

hence &e &ere not able to

carryout the fundraiser as

&e planned to Due to this

problem &e &ere only able

to raise 2s """

2esearching on

different kind of

coffee

$ &eek Tanyash

Dubey $4!"+!$3

6hen deciding &e need to

take a uota sample and the

sample should be large to get

more accurate result % &as

also keeping a record of the

number of uestionnaire

distributed and recei'ed

back in a register

0 sample of " people &as

chosen and a uestionnaire

&as carried out 6e

decided to go &ith more

than $ coffee fla'or

3


4/22

Task

Time expected People

responsible


2esearching on

different fla'ors of cookie

$ &eek Tanyash

Dubey

3!"+!$3 6hen deciding &e need to

take a uota sample and thesample should be large to get

more accurate result

0 sample of " people &as

chosen and a uestionnair&as carried out 6e decide

to go &ith chocolate

cookies

2esearching on

best &ay of

making coffee

3 days ,imit

maha1an4!"+!$3

6e prepared a list listing out

all the possible &ay of

obtaining coffee and the

method &hich &ould yield

the best taste

6e decided to go &ith a

coffee machine as this &ill

be hassle free and &e &ill

be able to meet a high

demand but this &ill be

expensi'e

2esearching onbest &ay of

making cookies

3 days TanyashDubey #!"+!$3

6e prepared a list listing outall the possible &ay of

obtaining cookie and the

method5 &hich &ould yield us

the best taste

7rom the list prepared &edecided to bake cookies at

,imits home as he had the

reuired euipment This

also meant that &e didn*t

had to rent euipment to

bake cookies &hich broug

our cost of production

considerably do&n

Preparingattracti'e posters days ,imitMaha1an $!"#!$3 % (Tanyash) &as goingthrough the chart thoroughly

to check the uality of this

chart This needs to be done

by the deadline

The posters &ere notimpressi'e 6e didn*t

&anted to exceed the

deadline so &e decided to g

&ith the already prepared

a'erage poster

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5/22

Dra&ing out other

forms of

ad'ertisement

- days

,imit

maha1an$+!#!$3

% &as checking the uality

and progress of

ad'ertisement to make sure

that our acti'ity is carried

out as planned

The ad'ertisement &ere

successfully prepared on

time

Obtaining ra&

material

days Tanyash "!$"!$3 8oth of us kept checking our

stocks e'ery hour and &e

prepared a list of all the

suppliers

6e failed to obtain ra&

material at the cheapest

possible cost as the results

from informal negotiation

&ere belo& our

expectations Therefore &

had a pay a little more for

stocks than &hat &e had

presumed

5


6/22

6


7/22

Task

Time expected People

responsible


Training days Tanyash "!"#!$3 6e kept on practicing &hat

&e ha'e learn in the training

to monitor our progress

Our training &as delayed

by one &eek because % had

to lea'e the to&n for some

important &ork

9et out stalls

$ hour per

session

Tanyash

Dubey and

nimit

maha1an

-!$"!$3 to $"!$"!$3 ,imit &as making sure that

e'erything is &here it should

be and e'erything is fine

The stall &as not

satisfactory %t &as not

decorated properly and

&as not able to attract and

persuade students to buy

our product

7ulfillconsumers

demand by

pro'iding them

&ith coffee and

cookie

0 &eek Tanyash

Dubey andnimit

maha1an

-!$"!$3 to $"!$"!$3

8oth of us &ere making sure

that &e ha'e enough ra&materials to make sure that

the demand does not exceed

the supply

8oth of us failed to identify

the demand and &e endedup ha'ing more ra&

material &hich reduced our

profits

Profits collected $ day Tanyash

Dubey and

nimitmaha1an

$$!$"!$3

%t &as the responsibility of

both the team members to

collects profits at the end ofeach day % had made register

in &hich % &as monitoring

the profits % &as registering

each sale into the register to

keep a track on the re'enue

% did not incur any problem

in collecting the re'enue

generated

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8/22

!,ecuti-e summary

Coffee right is a business, which will fulfill the growing demand of coffee throughout the

school. We want to make our coffee a necessit to the coffee addicts and attracts !eo!le to

drink our high "ualit coffee .#ur customer will en$o four fla%ors of coffee which will be

freshl brewed coffee from the coffee machine which will use high "ualit coffee beans made

from state of the art technolog. &he aroma of our coffee will be self sufficient to attract !eo!leto our stall. &he cookies will add on to the !leasure that !eo!le will ha%e while drinking our

coffee

#ur business will be taking !lace in the downtown of our school. &his is the !lace from where

most of the teachers and students !ass b. ' good !resentation successfull secured a good s!ot

for our business. &his itself reflect how determined both the team members were to succeed.

(irst few das the sales are likel to be less but we e)!ect the sales to !ick u!. *n the starting

we will use informati%e ad%ertisement to make sure that e%erone in the school ha%e the

information about our !roduct. (rom the third da we will use !ersuasi%e ad%ertisement to

!ursue !eo!le to bu our !roduct

#ur !ricing strategies will be fle)ible. *n the starting we will use com!etiti%e !ricing to attract

more consumer and later on if the sales increase ra!idl and we feel that the stock is finishing

u! faster we will use !romotional !ricing.

.is# assessment

+


9/22

2isk

:ikelihood of

occurrence

9e'erity of

outcome

Comments

,ot getting

permission forstall

$; #;$"

6hen starting our acti'ity the $st thing that &e did &as ask for permission The head of

school &as happy &ith our acti'ity and he agreed to an agreement granting us permission

for stall Measures taken to reduce risk &as preparing a nice presentation so that theteachers and head of school ha'e a clear idea about our acti'ity and to sho& them that

there is demand for our product and &e are ser'ing a healthy product %f &e &ould ha'e

failed to get permission to open a stall in school then the acti'ity had to be carried out in a

market place &here &e &ould ha'e to gi'e rent and there &ould ha'e been a lot of

competition

,ot able to raise

appropriate

finance

-;4 +;# 2aising appropriate finance is 'ery important for our acti'ity and the most difficult too To

raise finance &e prepared a cash flo& forecast and a business plan to increase the chances

of getting loan from school On the parents teacher meeting &e had a fund raising e'ent5

&hich also helped us to raise some fund %f &e &ould ha'e failed in raising fund then &ehad to reduce our planned expenses someho& or take a part;time 1ob to increase our cash

inflo&

7ailed to create

attracti'e

posters


10/22

2isk :ikelihood of

occurrence

9e'erity of

outcome

Comments

7ailed to identify

the best &ay of

obtaining coffee

4; 4; 6hen &e decided to make coffee5 &e kne& that it is 'ery important to identify the best &ay

of obtaining this coffee (readymade coffee or fresh grinded coffee) %f &e &ould*'e failed to

identify the right &ay of obtaining coffee for instance= if people &ant hot coffee then &e had

to use coffee machine for obtaining coffee rather than ready made coffees a'ailable inmarket %f &e buy ready made coffee then the sales &ill decrease as people are actually

looking for hot coffee and this &ill reduce our sales re'enue To reduce the risk &e identified

the demand &ith a uestionnaire and then decided onto &hich method to be used to obtain

coffee

7ailed to identify

the best fla'or of

cookie to be sold

-;4 4; %f &e are successful in identifying the correct fla'or (&hich has the most demand) then more

people &ill be &illing to buy our cookies ho&e'er if &e fail in identifying the correct fla'or

less people &ill be &illing to buy our product and our sales re'enue &ill decrease

%n order to reduce the risk &e identified the demand by a uestionnaire conducted on "people

0d'ertisement

inaccurate

4; ;+

%f ad'ertisement prepared is inaccurate then the consumer might end up buying from other

business as &rong information &ill be gi'en to consumers this is a example of ineffecti'e

external communication To pre'ent this precautions &ere taken= a consumer panel &as set

up to check &hether the ad'ertisement is gi'ing a clear message or not

1-


11/22

2isk :ikelihood of

occurrence

9e'erity of

outcome

Comments

Difficulty in

obtaining ra&

material

;3 ;+ 6e are obtaining ra& material from a reliable supplier ho&e'er if there is ineffecti'e

external communication bet&een us and the supplier then &e might end up getting the

&rong supplies and if &rong supplies are obtained then our product process &ill come to a

halt To reduce the risk &e ha'e a backup of other supplier and &e ha'e a checklist to check

the supplies regularly and check for any shortage of supply

7ailed to set up the

stall on time

;3 ;+ This is less likely to happen as help from teachers and 1uniors &ere taken5 &e had enough

&orkforce and had al ready taken the permission for the stall ho&e'er failing to set up the

stall in time &ould mean that &e &ill loose important business days &here sales could ha'e

be made

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12/22

2isk :ikelihood of

occurrence

9e'erity of

outcome

Comments

Po&er cut 3;< +;# Our school has < hours energy back up This reduces the chances of a po&er cut but there

are situation &here the energy back up fails and there is a po&er cut for &hich lasts for

about half n hour %n such scenario our production process &ould ha'e been halted and our

re'enue from sales &hich could*'e ha'e been made during that time &ould*'e decreased

7ailed to set up the

stall on time

;3 ;+ This is less likely to happen as help from teachers and 1uniors &ere taken5 &e had enough

&orkforce and had al ready taken the permission for the stall ho&e'er failing to set up the

stall in time &ould mean that &e &ill loose important business days &here sales could ha'e

be made

/inancial "lannin&oing financial !lanning was one of the most im!ortant as!ects of our enter!rise !ro$ect. (ollowing are the !oints $ustifing whfinancial !lanning was %er im!ortant

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13/22

• ana&in& income: it/s !ossible to manage income more efficientl through !lanning. (or

instance0 if we are en$oing a high sales and a high !rofit then with !lanning we will be

able to utilie the !rofit to its o!timum use.

• Cash *lo$: *ncrease cash flows b carefull monitoring our s!ending !atterns and

e)!enses.• Ca"ital: financial !lanning allows ou to consider in%estments to im!ro%e our o%erall

financial wellbeing.

• Security: a good financial !lanning will enable us to get !ro!er insurance co%erage in

!lace which will mean there will be a sense of safet in the business

• in-estment: ' !ro!er financial !lan considers our !ersonal circumstances, ob$ecti%es and

risk tolerance• /inancial 1nderstandin& = etter financial understanding can be achie%ed when

measurable financial goals are set, the effects of decisions understood, and results

re%iewed.

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14/22

Cash *lo$ *orecast

%ur"oseWhen starting our acti%it, we will need to know how much cash will be needed for the running of our acti%it. *t is %er im!ortant to

know the cash needed to start a business and man new businesses are often unsuccessful because the fail to determine the cash

needed to start the business. ' cash flow forecast will hel! us a%oid this !roblem.

14


15/22

To be better prepared we had listed out measures to be taken in case of a cash flow problem:

1. Reduce any daily or planned expenses (ask for trade credit from supplier)

2. Ask for credit from suppliers and delay expenses until cash is aailable!. Arran"e with bank to borrow money durin" the period of cash flow problem

Sources o* *inance

Monday Tuesday 6ednesday Thursday 7riday

"enin& ban#

balance

C(S IN/LS:Cash sales&otal cash inflow

C(S

1T/L aw materials

#ther e)!enses&otal cash outflow

Net cash *lo$

Closin& ban#

balance

5---

5--5--

5--

2--7--

2--

4+--


16/22

%tems reuired

in our acti'ity

9ources of finance

0d'antage Disad'antage 9ource of finance chosen

2enting a

coffee machine

>2s """

money obtained

from fund raising

e'ent

This &ill not ha'e to be

repaid

:ess money &ill be raised5 the

money raised might not be

enough to rent a coffee machine

6e decided to ask for loan from school to rent

a coffee machine 0sking for loans from school

to rent &ill mean that no interest rate &ill be

charged though the money &ill ha'e to be

repaid This money &ill be uick to arrange and

this can be for 'arying length of time /o&e'er

if &e fail to make enough sales re'enue then &e

might fail to repay the loan 0 collateral

security might also be asked from school

O&ners sa'ing This &ill be a'ailable

uickly and no interest

&ill need to be paid

9a'ings maybe too lo& and it &ill also

increase the risk taken by the o&ners

:oan from school ,o interest &ill be

charged and can be

uick to arrange

This money &ill ha'e to be repaid

&hich can reduce our profit and if not

enough profits are made &e might not

be able to repay the loan Collateral

security might be reuired

O'erdraft from

bank

%nterest &ill only be

paid on the money

o'erdra&n %t is also a

flexible &ay of

borro&ing

%nterest rats are 'ariable The banks

can ask for the o'erdraft to be repaid

at 'ery short notice

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17/22

%tems reuired

in our acti'ity

9ources of finance


2a& materials

to produce

coffee

>"""

O&ners buying

share

Money &ill not ha'e to

be repaid Cheaper &ay

of raising finance

8uying share our self &ill raise

a small amount of finance and

this finance &ill ha'e an

opportunity cost this finance

could be used for contingency

fund

6e decided to buy share in our acti'ity

Collecti'ely &e both bought shares &orth 2s

"""this money &ill not ha'e to be repaid this

&ill increase the profits made by our acti'ity as

this is a cheaper &ay of borro&ing /o&e'er

buying our o&n shares &ill increase the risk

taken by both of us and this finance &ill ha'e a

opportunity costTrade credit This &ill be a interest

free loan for the length

of time the payment is

delayed for

The supplier may refuse to supply

anymore goods if payment is not made

uickly

%ssue of shares %t is a permanent source

of capital &hich &ould

not ha'e to be repaidno

interest &ill be charged

Di'idends &ill be expected from us

this &ill reduce our profits The

o&nership of the company also could

change hands

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18/22

%tems reuired

in our acti'ity

9ources of finance


7ee for people

cookie making

course >2s


19/22

2enting of coffee

machine

:oan from school 6e kne& that a large amount &ill be needed to buy the euipment5 and it can be time

consuming to sell the euipment after our acti'ity has ended so &e decided to rent the coffee

machine instead as this &ould turn out to be cheaper but still the funds collected from our

fundraising e'ent &ere not enough 6e also thought of buying shares in our o&n business

but because of fe&er members in the group &e could not collect the reuired finance ie

""" 6e decided to reuest to the school for the loan for the euipment 6e pro'ided them

&ith our cash flo& forecast and business plan to strengthen our position for getting the loan

The school &as confident and decided to gi'e us the loan This &as the best option as the

loan from school &as

2a& materials such

as coffee beans

O&ners buying shares 8oth of us agreed to buy shares in our o&n business to finance the ra& material reuired

for production 6e both agreed to contribute $""" each This meant &e had """ in total5

&hich is enough to finance the ra& material reuired to make coffee This finance &ill not

ha'e to be repaid5 as this &ill be a permanent capital This &ould reduce our cost of

production &hich could result in a increase in profit

2a& materials such

as cups and tissue

7inance raised from fund

raising e'ent %n our fund raising e'ent &e &ere able to raise around $""" ($""" short of &hat &e had

expected) The money reuired for ra& materials such as cups5 tissue and paper plates &ere

4"" This meant that &e had


20/22

0d'ertisement of

our product

Trade credit 6e decided to design an ad'ertisement and take a print out from the school;printing

department and paste it all o'er the school to spread a&areness about our product The

school;printing department allo&ed us to gi'e us a trade credit The total cost of producing

the ad'erts &as -"" out of &hich 3"" &ere gi'en to us as trade credit5 &hich needs to be

paid$ &eek after our acti'ity 6e &ould pay this 3"" from the profits that &e ha'e earned

after the acti'ity ,o interest &ill be charged on the trade credit

Training 7inance obtained from fund

raising e'ent

0 total of $"""rs &ere obtained from fund raising e'ent out of &hich 4"" &ere spent on

getting some ra& material 6e used the spare


21/22

• Make a brand image in the school and gain customer loyalty

• Not just break even but make a prot

• Carry out this business activity in a ethical manner

In order to do this:

•

oth the team members should be highly motivate to succeed !to beproductive"

• othe the team members work toward best of our ability

• #ard work

The reason we think we will be successful are:

$rom day one of our enterprise activity we knew that it would take up alot of hard work and determination if we want to succeed. oth theteam members are highly motivated to work as hard as possible and ase%cient as possible to make sure that our rst business activity doesnot fail. &e were also able to identify the right product and a marketgap. &e don't have any direct competitors and the weather conditions

are also favoring our product !in winters the demand for hot co(eeincreases signicantly". )he results of the questionnaires also re*ectedthat our business activity is likely to be successful

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Documents

Task Two- Enterprise