Warung ah beng financial report

WARUNG

AH BENGFINANCIAL REPORT

GROUP MEMBERS: JAMES WONG (0317890)

JACK NG (0317980)

ANNA NEO (0318236)

NURIN (0318596)

KNICK (0317749)

WARUNG AH BENG FINANCIAL REPORT 1

AUGUST 2014 INTAKE(SEM2)

Table of content

CONTENT PAGE1. SUMMARY/OBJECTIVE 32. TARGET MARKET 43. COMPETITION ANALYSIS 54. PRODUCTS AND PACKAGING 6-75. PRICING 86. PROMOTION 9-107. SPONSORS 118. DISTRIBUTION 129. GREEN MEASURES 1310.

HUMAN RESOURCE PLANNING 14

11.

EVALUATION RESULTS 15-16

12.

APPENDIX 17-20

13.

CONCLUSION 21


Summary/Objective

The main purpose for this business project is to let us learn about

business management and product marketing in a traditional

classroom setting. For every earning or profit we get will 100% be

donated away to charitable organization.

Kiwanis, which is a globalized organization where people

volunteered dedicated to improve the world one child and one

community at a time. Kiwanis operates in more than 90 countries

worldwide through the support of more than 8000 clubs and

400,000 members. In Malaysia, this organization serve down-

syndrome kids with care by giving them hope.

The reasons why we donate our earnings to Kiwanis is because

the kids there were mostly born handicapped, where they weak in

absorbing knowledge like normal children does. By donating to

Kiwanis, they are able to upgrade the facilities and provide a

better service to serve these kids which need extra attention on

them.

We targeted to get RM1, 200 of donations from big companies

and corporate around peninsular Malaysia and we also targeted

our sales for RM1, 500, so that we can get a total amount of RM2,


700 which exceeds our target which is RM2, 500. The total

earnings and profit will be fully donated to Kiwanis.

During the charity drive, we get RM1,778for the sales revenue

and for the donations we get around RM1, 200.

TARGET MARKET

Since the location for our business is in Taylor’s Lakeside

University, the range for our customers are classified to two

types: One, which is students, where it holds the majority

percentage in our location, another one is lecturers and staffs in

the campus which hold a minority percentage in Taylors. The

students and staffs here are mostly Malaysian and the other small

group of students and staffs are from overseas.

Based on the analysis I made, I observed that mostly of the

customers would like to spend more on foods rather than on

goods. The reason the staffs, students and lecturers passed by

Student Life center to commercial block is because they are

hungry. So, that’s the main purpose where they seek for food

more than goods and services.

For the investigation of their spending power, we knew that

spending a meal in the commercial block with drinks can cost up

to more than RM15, where for foods we sell per stall the


maximum price will be around RM5 per item which means that

you can buy more than 2 to 3 types of food just by visiting the

few stalls in Student Life Center.

Hence, most of the people here are students where they don’t

have personal income to spend on expensive food and beverages.

So, mostly of the students will think about the opportunity cost,

where they can choose whether to just buy one meal from the

commercial block or buy a few variety of food from the stall and

have different tastes.

COMPETITION ANALYSIS

The 2 main competitor on field is the stall on the right side (Sue’s

Group) and the other stall on the left side (Yu Jing’s Group).

SUE’S GROUP YU JING’S GROUP

PRODUCTS POPCORN, BROWNIES BROWNIES

SERVICES - PLAYSTATION GAMES

STRENGTH They have nice

packaging for their

products and they

display the popcorn

machine as well, which

the color of the

They use sound devices

like speakers to attract

customers to approach

them. Hence, their

Brownies packaging is

also attractive as well.


machine attracts

customer towards

them. Their Brownies

that taste fantastic

which attract students

as well.

VULERABILITI

ES

The two groups mainly focus is on sweet tooth, but

they didn’t find out that, the weather in Campus is

very hot and humid where the foods they sell will

lead them to thirst, and they didn’t have any

products that can solve the thirst of the customer.

PRODUCTS AND PACKAGING

Product 1: Fruits

Description: A mixture of Mango, Guava,

Cucumber and Sengkuang to rejuvenate

the droughty throat with splendid fruit

juice.

Package: They are packed in a cup with

wrappers on the top to prevent dust

from going in and to keep the freshness

of the fruits, we prepared an ice box for it. Or in other choice, you

can add in Kuah and it turns toRojak.


Product 2: Roti Jala with Curry

Description: Roti Jala is made of Flour and Egg and with the featuring of hot chicken curry makes it even delicious. However, you can also eat it with Durian, but we only prepared chicken curry.

Package: The curry is separated from the Roti Jala, so that the freshness of the Roti Jala can last longer.

Product 3: Coconut Juice.

Description: Fresh Coconut Juice. You can either choose it in a cup, without flesh or with flesh, or you can even eat and drink it in


the coconut shell . Where there is plenty of coconut to serve you with.

Packaging: The coconut juice will be poured into a cup with our stall logo, if you order with shell, we will wrap it and place it in a plastic bag to prevent the juice from leaking out. After you finish drinking it, you can starts to hunt for flesh as well.

Well, if you look carefully in each food package we prepared, our stall Logo is stick on each cup and container, so that it will give an impression to the customer to remember our stall name and how it looks like. Well that may be our attraction towards the customer, and the outcome is once proved that regular customer came back every day to purchase our food because our logo creates a local food feeling for them.

PRICING

PER UNIT COST PRICE(WITHOUT INCLUDING PACKAGING)

PER UNIT SELLING PRICE

COCONUT JUICE RM2 RM4COCONUT JUICE WITH SHELL

RM2 RM6

ROJAK RM2 RM4FRUITS RM2 RM3


ROTI JALA RM1 RM5

The table above is the original selling price for the first day, since the price we used is for market testing. There is some changes in the following days. Like for the coconut juice in the first day had the worst sales, so we decide to reduce the price of coconut juice from RM4 to RM3. We decide not to change the price of roti Jala since it had the best feedback then the other food. So the price of roti Jala remain the same.

After the changes of the price of the fruits, the fruits turned out to sell faster than the day before.

PROMOTION

For the first day, we only prepared a poster that is placed on the board, where it doesn’t seemed attractive due to the sunlight at the back that make the poster hardly seen. Soon, we found out when customers approached, they keep asking us what food we are selling and what’s the price of the food we sell. We lacked of a


menu, so we immediately went and make one temporarily menu and for the next day we prepared a permanent menu board.

POSTER OF OUR STALL FEAUTURING A BATIK BACKGROUND

(BACK OF THE STALL)

THE MENU AND LOGO

(FRONT OF THE STALL)


FRONT VIEW OF OUR STALL

Notes: The poster and logo in front of the stall indicates us out from all the other existing stalls, where it help the students and staffs to know the exact location of our stall. Of course, we put the information of the charity organization where all our earnings will be fully donated to them.


SPONSORS

Our targeted sponsors are mostly from big companies and from parents. We approach as many business corporate as we can to obtain the sponsorship. So, the main sponsorship that sponsor us is Nam Soon Huat SDN. BHD. and from Anna and Nurin’s parents as well. We targeted them because they are someone we know and they also wanted to do some charity as well.

In cash form, Nam Soon Huat SDN.BHD. had sponsored RM200 and from Anna’s parent we get RM800 and from Nurin’s parents we get another RM200, so it makes a total of RM1200 donations from sponsorships. As for some of the foods, James and Nik sponsored as well, like for the coconuts, they sponsored RM150 each, which is RM300 in total.

Where for Roti Jala, we get sponsorship as well as in cash RM124.

For the Typhoid Vaccine, we also paid for ourselves as a part of sponsorship to the charity drive. In conclusion, the total sponsorships and donations are RM1924 in total.

While mostly the sponsorship that we owned are through phone calls and face-to-face meetings. Of course, when we approach we also brought the Sponsorship Letter along with us as a proved to them that every money that they sponsored goes to charity.


DISTRIBUTION

Because of the foods we sold are fruits and coconuts, in a way to keep them fresh, we had no choice but to wake up in the early morning and prepare everything before 7a.m. After that, Jack and James will drive to Anna house and pick up the products and delivered it to the campus (which is the sales location).

Mostly our food will be well-prepared and packaged, so when the customers approach, they can get their food straight away. But for the coconut drinks with shell, we need around 5 minutes time to hack the coconut and beautiful wrapped up for customers. We minimize the time of hacking coconut to 2 minutes, because we chopped of the husk and the shell of the upper part first, so when the customer approached, we just hacked one hole on top of the coconut and it’s well prepared.

Majority of the customers will ignored us if we don’t approach them first. In a way to gain attention and get a sales or donation done, we approached them no matter how many people passed by our stalls. We also went everywhere around campus to sell our products, whenever we saw someone sitting in the classroom, we will knock the door, and quickly approached them as well.

Some of our customers is our friends, where they give fully support to us by donating and purchasing our products. The lecturers also give support to us by purchasing each stall products where we appreciate a lot.


GREEN MEASURES

The products we choose can are made in an environmentally-conscious manner, why? Because the foods we prepared are mainly fruit. The skin that we peeled of the fruits can be used as a fertilizer for the plants nearby the house area. Of course we dig the hole and buried in the soil to prevent insects and other animals to mess up the area.

The coconut shell had been recycle back to the coconut supplier since they are experts in supplying and skillful in dealing with the coconuts leftover. So, I think that we made the right choice by returning the coconut shells back to the owner.

The packaging we used for the fruits are mainly plastic containers, while plastics containers is absolutely not environmental friendly at all. But we had no other choice but use plastic container to keep all our foods. We did told each customers that they should recycle the containers after finish consuming our food, so I think it will be alright since the campus has recycle bin everywhere.

Well, for the first time we use a lot of water because we don’t know where to store the coconut juice, so we wash quite a lot of containers and all aren’t use in the end. We solve it by using a proper container to store the juice, so the following day, we are using the same way to store the juice, so that we doesn’t have to wash a lot.


HUMAN RESOURCE PLANNING

ORGANIZATIONAL CHART OF WARUNG AH BENG


JAMES (LEADER AND MARKETING)

JACK (ACCOUNTANT AND FINANCIAL)

KNICK (IN CHARGE OF COCONUT

RELATED PRODUCTS)

NURIN (IN CHARGE OF ROTI JALA

RELATED PRODUCTS)

ANNA (IN CHARGE OF FRUITS RELATED PRODUCTS)

Note: Although the chart above shows each single people have their own section to in charge with, but still we work together as a team and helps the other section that needed help as well.

EVALUATION RESULTS

Income Statement of Group A Charity Drive Event

Revenue

Sales $1,778

Less: Cost of Goods Sold $900

Gross Profit $878

Add: Other Revenues $ 1,924

Adjusted Gross Profit $2,802

Less: Operating Expenses

Expenses A $300

Total Operating Expenses $300

Net Profit $2,502


ROTI JALACOCONUT JUICE

(BEFORE)COCONUT JUICE

(AFTER) ROJAK FRUITSCOCONUT WITH SHELL

S. Price $5.00 $4.00 $3.00 $4.00 $3.00 $6.00

Units 120 58 127 67 51 24

Rev $600.00 $232.00 $381.00 $268.00 $153.00 $144.00

ROTI JALACOCONUE JUICE

(BEFORE)COCONUT JUICE

(AFTER) ROJAK FRUITSCOCONUT WITH

SHELL

C. Price $1.60 $2.20 $2.20 $2.10 $2.10 $2.20

Units 120 58 127 67 51 24

Rev $192.00 $127.60 $279.40 $140.70 $107.10 $52.80

Based on the report, our Sales is double the COGS, which means we can cover up the cost of goods sold and earned half of the profit without subtracting the expenses. Hence, with the larger amount of gross profit earned, we can pay some small expenses and still get some profit rather than loss.

Also, sponsorship and donation take a big role as based on the income statement, half of the net profit is from sponsorships and donation. By having a large amount of donations and sponsorships, it really help us to reduce stress so that we can be relieved when the real charity event came because half of the target is reached.

The only thing we did wrong is the pricing of the coconut juice, because for the first and second day, especially in the morning, we found out that our coconut juice seems not flavored by the customers, where we faster reduce the price from RM4 to RM3, but soon we regret, because the profit per cup of coconut juice is only RMo.80. Hence we cannot raise the price anymore, since a lot of customers are already used to the price that we reduce, so to avoid any further comparison, we decided to maintain the RM3 price for coconut juice.


If we can repeat this business project, what we going to change is the strategy of our business. We are not going to cut, hack, packaging and move everything just by ourselves but what we can do is to find those shops that already had all of the food or products we sold well-package and is always ready to be sell. Although it will cost for a higher price, but at least we can save up our energy and focus more on promoting our products.

APPPENDIX

1. SPONSORSHIPS LETTER

A.NAM SOON HUAT SDN. BHD.

November 19th, 2014

NG TEIK LENGNAM SOON HUAT SDN.BHD.F1-g1, PasarBorong Kuala Lumpur,Pusat Bandar Utara,Batu Caves, Selangor, 68100

DearMr.Ng,

Requesting Sponsorship for Charity Drive Event

We, the students from Taylor’s University Lakeside Campus, are currently involved in a fundraising event as our school project in November 2014.


Our plan is to raise a total of RM2500 via sponsorships and product sales. The fundraising event will be held for a week from 17th to 21st November under the supervision of our lecturer Mr. Chang Jau Ho. All profits earned during the event will be donated to the KIWANIS DOWN-SYNDROME ORGANIZATION, a non-profit organization that provides services which serves and gives fully help to down-syndrome kids.

We are writing today to ask if you would consider donating RM200 to RM300 to help support our event. We believe that your generosity would go a long way towards supporting the organization and their noble cause. If you need more information about our event or have any questions you may contact me at 0173205509.

Thank you.

Sincerely,

NG WAI KHONGCharity Drive Event Group Leader

2. RECEIPT – cash receipts for products bought.


3. DONATION RECEIPT FROM KIWANIS DOWN-SYNDROME


VISIT TO KIWANIS


CONCLUSION

To manage a business is not as easy as how it looks like. Those successful businessman undergo a lot of difficulties before being successful and we can’t see the pain they overcome until they obtain such huge outcome in their life.

Of course, we learnt two things well doing this charity drive. Firstly, we need to be optimism when obstacles strikes, we need to rational enough to solve all the problems we faced with a calm heart. Although sometimes, you will feel like giving up the whole thing, but we need to have a strong sense of will power, that you must keep telling yourself to be patient and one day the success route will be right in front of you.

Secondly, which is luck. We need luck when we start a business, as in a strong supporter at your back and customers. When you started up a business and a strong supporter give you a huge amount of modal to manage the company, everything will be much easier than the other businesses which still struggle in finding modal for their business. Of course customers are included as well, if you get to know a bunch loyal customers where they really favorite your products and continuously purchased from you. Definitely, they will promote your item to their friends or family.

Although majority of the businesses only have the first aspect but not the second one, but still we need to manage the business in the proper and legal way.

YOUTUBE LINK:

https://www.youtube.com/watch?v=nfNPHp1EQVw&feature=youtu.be (Product, Packaging and Promotion)


https://www.facebook.com/l.php?u=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DnfNPHp1EQVw%26feature%3Dyoutu.be&h=fAQFjSGf0

Warung ah beng financial report

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