Contoh Assignment 2 Business Opportunity CS1104F Liyana Irdina Mohd Ariff 2019 292364 PDF

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FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300)

BUSINESS OPPORTUNITY OF SCRUNCHIES

PREPARED BY; LIYANA IRDINA BINTI MOHD ARIFF(2019292364)

GROUP : CS110(4F)

PREPARED FOR ; DR. NUR FAKHZAN MARWAN

SUBMISSION DATE : 7 JUNE 2021

Acknowledgement The COVID – 19 pandemic has affect the world wide’s economy state greatly. This also includes Malaysia’s economy state which is can be seen through the closing of businesses recently. Although the business’ customer target is only around the residential area, many of them showed support to the business’ handmade products. I felt really grateful for them. Many of them bought my products and introduced my business to their friends which ultimately allowed the business to achieve its target objective. Also, I felt thankful for those who advised me on how to manage the business systematically by teaching me how to communicate with the customer and how to organize all of the customers’ orders. All of these knowledges, helped the business to be more organized and systematic throughout its business activity. Although I managed the business on my own, I am happy that my family members also supported me to manage the business.

Table of Contents Executive Summary ................................................................................................................. 1 1.0

Project Description (Before Activity) .......................................................................... 2

2.0

Project Outcome (After activity) ................................................................................. 4

3.0

Experience ..................................................................................................................... 6

4.0

Appendices ..................................................................................................................... 9

Executive Summary The business is about selling handmade scrunchies and was started on 31th May 2021. The business is an online business where all of the products are being stored at my house. In order to promote the business, WhatsApp application are selected because of the wide range of usage and a WhatsApp group that consist all of the neighbourhood’s residents has already been created. Therefore, the business information about the products which includes product posters, promotion poster and pictures which are related to the product will be shared in the mentioned WhatsApp group. This will alert and allow the residents to recognize the business. In addition to that, the business operation are only conducted for 3 days. However, there are many things I learnt throughout the business operation. These include the importance of being friendly to all customers, the importance of checking the products’ quality and the importance of honesty in dealing and communicating with customers. Besides, the business also faced many challenging moments during its 3 days of operation. There are many differences in managing a business by our own compared to working under an organization business. The scrunchies business faced with the loses of customer, the delay in products delivery and the sacrifices which has to be done in order to ensure the business can continue operating successfully as usual. In a nutshell, despite all the challenging moments that the business faced, it is still a good opportunity as it is getting known day by day and achieved most of the business objectives.

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1.0

Project Description (Before Activity) 1.1

State the product / service The product which will be sold are scrunchies. The price is RM 3.00 per piece.

1.1

Justification of product/ service choice The reason why scrunchies was chosen as the product is because it is easy to make as crafting is one of the strength and hobbies that I have. Besides, the cost of the tools in creating a scrunchies is not too expensive compared to the other crafting tools as illustrated in Appendices 1.

1.1

Target market The business’ customer target is around the residential area which is around my neighbourhood. Why residential area are being selected? This is because of the current situation where the Movement Control Order (MCO) has started and it is easier to send the customer’s order because it is nearer for delivery. Apart from that, around the residential area, there are many families with children, so, the business may have many possible customers which targets the children and teenagers. Also, nowadays scrunchies has become a needs especially for young girls as they need to tie their hair. That is when these scrunchies are needed. However, teenager girls and children might do not want to buy a plain scrunchies design. Therefore, this business has made various design of scrunchies in order to fulfil their preferences as illustrated in Appendices 2.

1.1

Distribution Strategy The business will be selling the products in an online platform which is the WhatsApp application where the products will be paid in Cash On Delivery (COD) and only be sold around the neighbourhood. The stock of the product will be kept inside my house while the promotion will be done in the residential WhatsApp group.

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1.1

Promotion Strategy The business strategy in order to successfully sell the products is using the WhatsApp application. This is because the uses of WhatsApp application is in a wide range and is considered a must have application in current community. Moreover, my residential area have a WhatsApp group where most of the residents already joined it. Therefore, as one of the promotion strategies, a poster will be created which includes the product itself, the price and the name of the product and make it colourful to attract possible customers to look at the poster, as displayed in Appendices 3. Next, these posters will be shared in the residency WhatsApp group. The poster will be shared with additional product information which is the pricing, promotional offers and the number to be reached if someone is interested in buying the product which is my phone number as illustrated in Appendices 4. There are special price offers for the product which are for the customers who bought two or three of the scrunchies will get RM 5.00 offer and RM 8.00 offer for them respectively. The original price of the product is RM 3.00. These special price offers are one of my strategies as it will attract customer to buy in bulk quantities where it will be cheaper rather than if the customer buys in small quantities.

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2.0

Project Outcome (After activity) 2.1

Report on business transactions For the first day of the business, 5 scrunchies have been made to see if the target of the market is suitable with the products. Luckily, all of the 5 scrunchies have been sold successfully. There are two customers bought special price promo which is the two pieces for RM 5.00 and another RM 8.00 for three pieces. So, the revenue for the first day is RM 13.00 and 5 units of scrunchies have been sold. However, I used RM 5.90 to buy the tools to made the scrunchies. For the second day, the day where special promos price is getting known wider than the first day. The business initially made 5 units of scrunchies but end up making another 5 units of scrunchies due to high demand by the customers. Therefore, 10 units have made for the second day. A customer bought two sets of 3 units of scrunchies with different designs. This 6 units of scrunchies includes special price promo which is RM 8.00 per 3 units totalling of RM 16.00. The other customers, bought 2 units of scrunchies for RM 5.00. Therefore, RM 21.00 is the revenue for the second day. Out of the 10 units, 8 units of scrunchies have been sold. For the last day which is the third day, the business made 10 units of scrunchies since the second day there are many units which have been sold. In addition, the remaining two scrunchies from Day 2 was also included in the last day sale. Therefore, on the last day, there are 12 units of scrunchies. Most of the customer bought 3 units of scrunchies of the special promo price which is RM 8.00. Hence, on the last day, the total of revenue is RM 24.00 and the remaining scrunchies are three units which has not been sold yet. In conclusion, for three days of my ongoing business, 25 units of scrunchies have been made, three units of scrunchies have not been sold and only RM 5.90 for the cost. The profit for 3 days of my business is RM 52.10.

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2.2

Weekly business transaction summary Simple Cashflow Record Date

No. of units prepared

Cost incurred (RM)

No. of units sold

31/5/2021

5 units

5.90

5 units

Revenue daily (selling price x units sold) (RM) (5.00 x 1)+(8.00 x 1) = 13.00

1/6/2021

10 units

0.00

8 units

(8.00 x 2) + (5.00 x 1) = 21.00

2/6/2021

10 units

0.00

9 units

8.00 x 3 = 24.00

TOTAL

25 units

5.90

22 units

58.00

TOTAL SALE (RM)

58.00

TOTAL REVENUE (RM)

52.10

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3.0

Experience 3.1

The valuable lessons from the business activity This business activity has taught me a lot of things. At first, I am scared to start a business because I do not have any knowledge about business except what I have learnt inside ENT class which only covers the business’ theories. However, throughout my business period which are 3 days, I had learnt that it is important to be friendly in dealing with customer as it may affect the quantity of customer’s purchase. What does this means? It means that if we gain a good relationship with the customer, they may increase their units of purchase with our products. Also, there was a customer that also help introduced my business to their friends. This ultimately helps my business to gain more customers. Also, she repeatedly bought my scrunchies. Now, I realized why it is vital to be friendly towards customers because this will brings a lot of benefits to the business. Next, I need to be meticulous in creating the business product which is the scrunchies because this is one of the ways to protect my business reputation. This means if my customer get a bad quality of scrunchies, they will stop buying the product and may spread information about the bad quality to others. This action will bring a bad reputation about my products also to my business. That is why I need to be meticulous with my product quality and perform quality checking on each product. Moreover, there is a situation where I delivered the customer order late due to some unforeseen circumstances. My business is an online business where I need to go deliver the scrunchies by my own to the customer’s house. Most of the time, I am usually punctual in delivering customer’s orders however there was a time where I am late. Initially, I was scared to tell the truth but when I apologized to the customer and told the reason why I was late, the customer kindly accepted my apologies with a smile. This made me felt really grateful to her. This incident gave me a lesson where we need to be honest to our customers because if we give excuses, the customer may not trust us and avoid to buy our products again.

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I really enjoyed operating this business because I gained new experiences. In addition to that, when I made my first profit, I felt rewarded and all of my hard work are worthwhile because all of my product has been sold on the first day I started the business. I am really happy when the customer gave good reviews about my scrunchies as displayed in Appendices 5. I am grateful for these experiences despite all of the challenging moments that the business faced throughout the business activity.

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3.1

Challenges faced throughout the business activity It felt different when you are working under a management compared to when you started your own business. Working by my own is really challenging as I am the only one who managed the business. I need to be aware when a customer messaged me and alert on the time so that I will be punctual in delivering the product. For me, these aspects are really challenging because I am not good at dealing communicating with strangers especially through chatting application and I am a person who rarely check my phone during my free time. Therefore, I hope I could be a good texter in messaging with my customer because when I reread all of the conversations between my customer and I, I can notice some of the awkwardness but I am still happy because I can try and learn new things. Through this situation, now I know some of the do’s and don’ts when chatting with customers. Another challenging moment is where I need to make all of my product manually. This is because I sold handmade scrunchies with variety designs. I need to sacrifice my free time to make the scrunchies to refill the scrunchies stock. I also need to check the supplies quantity a day before the business operation to ensure I do not run out of supplies. Also, late reply from customer is quite a hassle for me because the customer just booked the products without paying it and did not give any responses when I asked for confirmation in buying the product. Lastly, I think this is very common in business where a customer suddenly cancel their order last minute. This cause unnecessary resources waste such as the cloth, and effort spent to make the scrunchies.

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4.0

Appendices Appendices 1

Requirements to make a scrunchies 1. Cloth 2. Elastic band 3. Scissors 4. Thread and needle

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Appendices 2

10

Appendices 3

Appendices 4

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Appendices 5

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