Entrepreneurship - Assignment 1 PDF

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FIRST SEMESTER 20/BPME1013 INTRODUCTION TO ENTREPRENEURSHIPGROUP TASKPREPARED FOR: DR. SHAHRINA BINTI OTHMANPREPARED BY:BIL NAME MATRIC NO1. SITI SUFINA BINTI MOHAMAD SUFIAN 2783402. NG ZHONG QING 2776033. LEE WAI KEONG 2771234. MUHAMMAD ARMA NORIFFAT BIN A.RASHID2784995. MUHAMMAD SYAHMI HAZIQ BIN M...

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FIRST SEMESTER 20/21 BPME1013 INTRODUCTION TO ENTREPRENEURSHIP GROUP TASK PREPARED FOR: DR. SHAHRINA BINTI OTHMAN PREPARED BY: BIL 1.

NAME SITI SUFINA BINTI MOHAMAD SUFIAN

MATRIC NO 278340

2.

NG ZHONG QING

277603

3.

LEE WAI KEONG

277123

4.

MUHAMMAD ARMA NORIFFAT BIN A. 278499 RASHID

5.

MUHAMMAD SYAHMI HAZIQ BIN MOHD 276859 LAILE

6.

SYASYA BADRINA BINTI AHMAD JAIS

277886

7.

LIM BOON KEONG

278175

8.

NG SIEW CHIN

277319

9.

CHIA HAN WEI

278649

BPME1013_Introduction to Entrepreneurship Table Content

No

Content

Page

1

Executive Summary

2-3

2

About Business

4-5

3

Market Planning

6-9

4

Management and Organizational Plan

10 - 13

5

Operational Plan

14 - 17

6

Financial Plan

18 - 20

7

Business Model Canvas

21

8

Conclusion

22

9

Appendix

10

References

23 - 25 26

1

BPME1013_Introduction to Entrepreneurship 1.0 EXECUTIVE SUMMARY 1.1 Business Idea and Strategic Goals The source of the idea for our business comes from the demand on the snacks and having such a good market to sell it. So, we created our own company called ‘Snacklicious’ and started an online business selling snacks with various flavours. From this business, we have set some strategic goals for us to achieve which is to improve our customer relations from feedback and response by customers about our product. Next, innovate new solutions for any obstacles that our company will be facing during online business. Increasing our own brand value is also one of our strategic goals that will attract people’s attention and secure our own regular customers.

1.2 Management and Organization Our management teams for Snacklicious are within our team members who is Chia Han Wei as the Director of Snacklicious and will be supported along with: Manager of Finance: Ng Zhong Qing Manager of Administration: Siti Sufina and Muhammad Arma Noriffat Manager of Sales and Marketing: Syasya Badrina, Ng Siew Chin and Muhammad Syahmi Haziq Manager of Operations: Lee Wai Keong and Lim Boon Keong

1.3 Product and Services The product that we use is snacks from NZ Crunchies and consists of 8 different flavours that our customer can choose for their own desire. We provided a google form for the customer to fill in to ensure the customer’s purchases and their residential address for the drop-shipping services to make sure our customers get their beloved snacks.

1.4 Research and Development We have done some research at social media such as Facebook, Instagram, 2

BPME1013_Introduction to Entrepreneurship WhatsApp and so on to find the product for our business. Finally, we find that NZ Crunchies’s product met with our criteria. We decided to use NZ Crunchies product as our official product for our business.

1.5 Finances We use our own funding to get the stocks from NZ Crunchies for our business which is RM70 per member. With RM630 as our starter budget, we have got enough money for purchasing the products from the supplier for the first batch of stocks.

1.6 Marketing and Sales In this modern world, people especially teenager mostly use social media to surf the product or services for their own needs. Based on this new norm, we will promote our product through social media like Facebook, Instagram, WhatsApp and so on to acquire the customers and make them easier to find our products. With RM10 for each unit, it is a price that can be affordable by all people and get satisfaction from buying our product.

1.7 Market and Competition We realize that nowadays a lot of competitors in online business are selling snacks. We believe with our advantages which is quality and tasteful of our own products and our marketing tactics with using social media such as Instagram, WhatsApp, and Facebook to gain the customer’s interest for our product especially from young people.

1.8 Procurement and Logistics We are getting the NZ Crunchies’s product supplies from our stockist and posted it using delivery services such as ‘Pos Laju’ and J&T Express to our customers. We will make sure that the products can arrive to the customer as soon as possible with providing all the information about their item’s location.

3

BPME1013_Introduction to Entrepreneurship 2.0 ABOUT BUSINESS 2.1 Introduction of business After discussion, our group decided to name our business as ‘Snacklicious’ which is the combination of words ‘snack’ and ‘delicious’. The reason why we chose this name is mainly because we want to provide the delicious snack to our customers. The idea to start this business is that our team noticed that most of the people have the demand for snacks and think that snacks have a good market to sell. So, we decided to start an online business selling snacks which have different flavours. This is because products that have different flavours can satisfy different customers. Our target customers are young people because most of them like to eat snacks during watching movies or television. So, we try to look for different snacks and finally we make a decision to sell snacks that are named NZ Crunchies. We chose these snacks because it has 8 different flavours of those snacks which is not so expensive and advertisement of snacks is very attractive.

2.2 Product NZ Crunchies consists of 8 different flavours which are Cheese Primo, Chocolate Supreme, Golden Salted Egg, Korean BBQ, Milky Matcha, Roti Bakar, Savoury Chicken Floss and Teriyaki. All flavours cost the same price which is RM10 each unit. The flavours that have the best sales are Golden Salted Egg and Korean BBQ.

2.3 Current Status Our business is carried out with online business and we formed a page in Instagram named ‘Snacklicious’ to promote our products and all of us share the page to friends and family members. Our products have the advantage of having many special flavours, so it can easily distinguish apart from other products. Our business is targeting young people because most of them are interested in buying snacks to fulfil their demands. Our target goals are gain some profit and most importantly is to gain more than our funding that we used in starting business. 4

BPME1013_Introduction to Entrepreneurship

2.4 Funding Sought As we need to start our business, we have to buy stock and we need funds to support it. As we are students, our funding is sponsored by our parents. We decided to use those funds to order stock then we decided to order more or not depending on the response of the customers.

5

BPME1013_Introduction to Entrepreneurship 3.0 MARKET PLANNING Market planning is the process of organizing and defining the marketing seek of our company and gathering strategies and tactics to achieve them. First, we have defined our company’s mission statement and vision statement to help us make decisions and achieve our target easier. Our marketing plan consists of the company’s value proposition, information regarding our target market or customers, a comparative positioning of our competitors in the market, product strategies and promotion strategies.

3.1 Mission Statement Mission or purpose statement stated clearly that the foundational reason why the organization exist (Cady et al., 2011). Briefly, a mission statement is like a road map of how a company or an organization can achieve the goals set in the vision statement. Therefore, we decided our mission statement as ‘Provide delicious snacks to every customer in every house.’ Based on our mission statement, we sincerely hope that everyone can enjoying snack in their daily at the same time relieve boredom.

3.2 Vision Statement Vision provides the guideline about what main purpose to preserve and what future to promote the progress towards (Collins & Porras, 1996, p. 66). Our company’s vision is to be the best snacks supplier in our country. Being the best means providing outstanding quality, service and value that make every customer satisfied with our product and services.

3.3 Target Market Selection It is essential for our team to identify the set of people whom we want to target. Our team also needs to understand the needs and expectations of the individuals to create the target market. The target audience must have similar needs, interests and expectations. The similar products and brands are important to entice the individuals 6

BPME1013_Introduction to Entrepreneurship comprising the target market. We also made advertisements to attract the attention of the target audience and prompt them to buy via social media such as Instagram, WhatsApp and Facebook. To select a target market, it is essential for us to study the factors such as the age group of the individuals, gender and the spending capacity of the customers. For example, our team is targeting the people of young age because most of them love to eat snacks during watching movies and television.

3.4 Target Market Size and Trends The market size is defined through the market volume and the market potential. So, the target market size for our team is to get as many customers as possible. The market volume for our team has been based on quantities and the qualities of our product. As for our team, we have 8 interesting flavours which are Cheese Primo, Chocolate Supreme, Golden Salted Egg, Korean BBQ, Milky Matcha, Roti Bakar, Savoury Chicken Floss and Teriyaki. So, this is shown that our products also have many quantities and also have the best of qualities because we sell the eight different flavours to make more variety and to attract our customers. For our market potential, we are targeting the number of customers as many as we have because it is important for our products to grow better. The market trends are also significant to our products. Market trends are important because they relate to financial markets. Based on our products, the price of all of our snacks is RM10 for each unit.

3.5 Market Analysis In order to understand our company better, we have done an analysis based on the SWOT Analysis Model (Strength, Weakness, Opportunity and Threats). Moreover, we also use the 5P’s of marketing elements which are Product, Price, Promotion, Place and People to position our business strategically. The 5P’s of marketing, also known as the marketing mix, are variables that management teams control to satisfy customers in our target market, add value to our business and also help to distinguish our business from other competitors. 7

BPME1013_Introduction to Entrepreneurship ✓

Product Strategy Baker and Hart (2007) mentioned that product strategy defines what your product should achieve and how that help the organization go through the product road map (para 23). Product refers to the products/ goods and services offered by a business. Product decisions include function, packaging, appearance, warranty, etc. Our product, which is NZ Crunchies, is a new snacks product that has been launched since 2019. However, they took a year to get everyone’s approval due to the delicious taste, especially Golden Salted Egg and Cheese Primo get favour from many return customers. Their packaging is also different from other manufacturers, the snacks are packed with a bottle, compared to others which are packed in plastic, this packaging makes the snacks more intact and not easily crushed. In the customer services aspect, we provide a google form for customers to fill in when they are purchasing our product. Our purpose of doing this is to double confirm the flavour of customers’ purchases and to obtain their residential address to facilitate shipping. This can avoid any mistake that will exist in the transaction process that can cause any inconvenience to customers.

✓

Pricing Strategy The pricing strategy is significant for our business because the product prices can determine the marketing plan. Based on our products, we have 8 different flavours of snacks and we sell it at RM10 for each unit which we think is the best price to sell it to make sure that our marketing is stable and can attract many buyers to buy our products. Based on our plan, the pricing strategies that we consider the best to use in our business project is penetration pricing. This is suitable to be done when a new product is being launched. The meaning of penetration pricing is the price is set artificially low to gain market share quickly. The prices will be raised once the promotion period is over and market share objectives are achieved.

✓

Promotion Strategy Promotion strategy is defined as the activities that make the business more known to consumers, including sponsorships, advertising, and public relations activities. 8

BPME1013_Introduction to Entrepreneurship As we are simulating running a business, we don’t have enough funds to advertise on television or any social network. In this aspect, we have promoted our business in Instagram, WhatsApp, and Facebook a week in advance before we launch our business officially. Each of our business partner have shared the post to each social networking sites to propagate our business and product. This allows our products to gain popularity before they go on sale. ✓

People Strategy People refer to the staff, salespeople and those who work for the business. In our business, we have 9 partners who are taking different parts of responsibility to launch our business together. In order to make sure our business runs smoothly, we make up the financial department, administration department, sales and marketing department and operational department to take responsibility in running our business in different ways. Therefore, every member in the company can contribute well to make our business successful.

✓

Place Strategy Place strategy is where the product and services of the business is seen, made, sold or distributed. In other words, place decisions are associated with distribution channels and ways of getting the product towards targeted key consumers. We know that we are running an online business, so that we do not have a physical store and market coverage in designated places. We welcome all customers in Peninsular Malaysia to order our product, we do not open ordering from East Malaysia because our supply factory does not have any warehouse in East Malaysia yet. To make sure that our product can arrive to customers as soon as possible, we cooperate with ‘Pos Laju’ and J&T Express for shipping services.

9

BPME1013_Introduction to Entrepreneurship 4.0 MANAGEMENT AND ORGANIZATIONAL PLAN 4.1 Organizational Structure Organizational structure is a system that outlines how the business activities are directed in order to achieve the business target or goals (Kenton, 2020, para 1). The organizational structure also determines the flow of the business due to the productivity of teams to work cooperatively and effectively together. As we can see through the organizational structure below, we have four teams under the director which are the finance team, administration team, sales and marketing team and operations team. Finance team consist one person, administration and operations team consist two person each team while sales and marketing team consist three person.

DIRECTOR CHIA HAN WEI

FINANCE

DEPARTMENT

NG ZHONG QING

ADMINISTRATION DEPARTMENT

SALES & MARKETING DEPARTMENT

OPERATIONS DEPARTMENT

SITI SUFINA

SYASYA BADRINA

LEE WAI KEONG

MUHAMMAD ARMA NORIFFAT

NG SIEW CHIN

LIM BOON KEONG

MUHAMMAD SYAHMI HAZIQ

4.2 Management Department Snacklicious management departments contains the Director, Finance Manager, Administration Manager, Sales and Marketing Manager and Operations Manager. Each of the teams have their own skills that they can develop in their roles.. 10

BPME1013_Introduction to Entrepreneurship I.

Director of Snacklicious Chia Han Wei is our director of Snacklicious because he has shown his ability to be a director of Snacklicious. Being a director is not easy because the director needs to ensure the business is constantly moving towards fulfilling its short-term and long-term objectives. The director needs to prepare and implement the business plans and strategies to make sure the business can fulfil what customer needs and wants. However, to fulfil what customer needs and wants, the director needs to build trust relationships with the supplier because it may easy the director to get a good quality and quantity of the product to sell to the customer..

II.

Finance Ng Zhong Qing who is fully responsible toward our business finance. This is because he knows how to manage finance very well. He is also responsible for planning the budget of business because it can avoid the business from huge losses. As a finance manager, he needs to record all the transaction activities according to develop profit and loss plan to ensure maximized returns and profit targets by preparing the profit and loss statements. Finance manager also need to cooperate and work together with the operations and sales and marketing manager to supervise and support in business operations effectively.

III.

Administration For administration position consist two persons which are Siti Sufina and Muhammad Arma Noriffat. As an administration, they had set a goal to ensure all activity that carried on efficiently and effectively to allow other operations to function properly and smoothly. They are responsible to assess staff performance by providing coaching guidance to improve staff performance. Administration team is also fully responsible to monitor the 11

BPME1013_Introduction to Entrepreneurship inventory of office supplies and purchase the higher quality product. This is because they need to make sure that the products that they get from suppliers are in good condition and quality. Next, they need to make sure everything run smoothly due to the schedules and deadlines.

IV.

Sales and Marketing As we know, sales and marketing are one of the important teams to make sure the business can achieve the targets. Sales and marketing teams consists three persons which are Syasya Badrina, Ng Siew Chin and Muhammad Syahmi Haziq. Three of them are responsible for making and planning good sales and marketing strategies to promote the business’ product especially when they want to introduce the new product to the market. As we know, there are many platforms or ways that can be used to promote the product such as Facebook, WhatsApp and Instagram. By using social media platforms, they need to think of the best ideas and strategies to attract people to buy our product. The most challenging part is the sales and marketing teams need to build strong relationships with important customers by doing some research on what customer needs and wants and satisfaction or feedback customers towards the product that they have bought.

V.

Operation Lee Wai Keong and Lim Boon Keong are the people who are responsible for the operations team. Both of them need to be responsible for monitoring and improving daily function of business to make sure that is not any problem that will make the operations of business getting slow or stuck. They also need to be responsible for monitori...