task two- enterprise
TRANSCRIPT
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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
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%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
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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
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Task
Time expected People
responsible
Date expected for completion Monitoring Outcome
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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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
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Task
Time expected People
responsible
Date expected for completion Monitoring Outcome
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
$$!$"!$3
%t &as the responsibility of
both the team members to
collects profits at the end ofeach day % had made register
in &hich % &as monitoring
the profits % &as registering
each sale into the register to
keep a track on the re'enue
% did not incur any problem
in collecting the re'enue
generated
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!,ecuti-e summary
Coffee right is a business, which will fulfill the growing demand of coffee throughout the
school. We want to make our coffee a necessit to the coffee addicts and attracts !eo!le to
drink our high "ualit coffee .#ur customer will en$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
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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
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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
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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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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 $ustifing whfinancial !lanning was %er im!ortant
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• ana&in& income: it/s !ossible to manage income more efficientl through !lanning. (or
instance0 if we are en$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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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.
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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+--
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%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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%tems reuired
in our acti'ity
9ources of finance
0d'antage Disad'antage 9ource of finance chosen
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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%tems reuired
in our acti'ity
9ources of finance
0d'antage Disad'antage 9ource of finance chosen
7ee for people
cookie making
course >2s
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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
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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
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• 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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