Business Plan

INTRODUCTION TO CYBERPRENEURSHIP

BEN 2014

Lecturer name: Mohd. Nor Ismail

Lecture Session: BC252

Group Name

ImogyzstanGroup members

Name Student ID

Sainbayar 1051108111 Anthony 1061100402 Alge S. 1061100408 Ari 1061100430 Astrid 1061100432 Berlian 1061100435 Gulzhan 1061110127 Mitta 1061105534 Uddy 1061107047 Enkhtsatsral 1061107529 Hafidz 1061108298Dewi 1061109277 Andi Eka F.D. 1061109278 Angeline 1061109279Chandra Leo 1061109394

List of Contents

Cover 1

List of Contents 2

Section 1: Executive Summary 3

Section 2: Business Description

A. General Description of the Business 3

B. Industry Background 4

C. Goals and Potentials of the Business 4

D. Uniqueness of Product and Service 5

Section 3: Marketing

A. Research and Analysis 5

B. Marketing Plan 6

Section 4: Operations

A. Identify Location 7

B. Proximity of Supplies 8

C. Access to Transportation 9

Section 5: Management Structure 8

Section 6: Finance 10

Section 7: Critical Risks 12

Section 8: Milestone Schedule 12

Appendix 14

Section 1: Executive Summary

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Introduction to Cyberpreneurship is one of the subjects offered this trimester. In this

subject we learn how to become and be a successful entrepreneur both in the real and in

the “cyber” worlds. The group’s name which is “Imogyzstan” represents the diversity of

the group. It stands for Indonesia Mongolia Kyrgyzstan. Imogyzstan have learned and

applied the theories learnt in the lectures. Imogyzstan have decided to try the food

business. They decided on a variety of unique products which will attract the customers

and have a relative advantage over other competitors.

The group is sure that through learning and applying all the things they have learnt they

will be able to become successful people in the future in the fields of entrepreneurship,

Information Technology and economics.

Section2: Business Description

A. General description of the business (ImogYzstan)

There are many types of businesses that Imogyzstan has considered to carry out,

such as holding a concert, event organizing or selling football T-shirts. After a couple

of meetings the group decided to sell foods and drinks instead. The kinds of food

Imogyzstan wants to sell to their customers have been discussed during the meetings.

In the end the group chose to sell 2 types of food; huushuur (a Mongolian snack),

toasted bread and 2 types of drinks: Magic Fruit Juice and Pop Ice.

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B. Industry Background

The food industry is a common type of business to perform in. Businesses such as

McDonalds and KFC have started from humble beginnings and now are giants of the

industry. Imogyzstan is interested in this industry not only because of the success

stories of these kinds of companies but also because food is a human being’s primary

need. These and some other reasons make Imogyzstan eager to start up a business of

foods and drinks.

C. Goals and potentials of the business

The group has many goals in this business. First of all, is to get the highest grade

in Introduction to Cyberpreneurship subject. In achieving this Imogyzstan have to put

their maximum effort and apply the theories learnt in the lectures in order to become

a successful entrepreneur.

Another important goal is to make a profit. Imogyzstan has started this business

on their own money, so they will yearn for a high profit. If the maximum amount of

profit is achieved, their capital will return back and Imogyzstan will feel the impact of

its initial efforts.

Lastly another important goal that the group must achieve is to fulfill the

customers’ demands. The customers are an invaluable asset as they provide

Imogyzstan with its profit. The customers need to be served wit the best service. The

potential of food selling is excellent in achieving all of the set above goals.

Imogyzstan hopes to finish the business by week 7. They will have to achieve all the

objectives put before them.

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D. Uniqueness of Product and Service

An important aspect of the food and drinks business is the uniqueness factor. A

product that is unique will catch the customer’s eyes and will make the customer

attracted to it. This uniqueness factor led Imogyzstan to come up with food and drinks

that will interest the customer. The group members have come up with several unique

products. Their most unique product is the huushuur. This is a Mongolian cuisine

snack made from flour, meat, onions and rice. Other than Mongolians, almost no one

knows of this product thus making it unique. The group also made toasted bread

which may not sound rare but the process in which they make it is different from the

usual one. They do not toast the bread, they fry it instead, and then the customers can

choose from a range of fillings such as chocolate rice, strawberry, cheese and milk.

The drinks that the group came up with are also distinctive. One drink is the Magic

Fruit Juice. This juice is made from fresh orange, jellies and other ingredients. The

taste is very pleasant and refreshing. Another drink is the Pop Ice. These is a drink

made from ice, powdered milk of chocolate, melon, vanilla etc. which they then add

condensed milk into. During a hot day, especially in Cyberjaya where everyday is a

hot day, Imogyzstan hopes that the drinks will be inviting to the thirsty students of

MMU.

Section 3: Marketing

A. Research and Analysis

1. Target market (customers)

In the MMU society there are a lot of potential target markets. Imogyzstan’s main

target is of course the MMU students. The Cyberjaya campus is always full of students

from the morning until the evening. These students, as all normal people do, have

primary needs which are to eat and to drink. Another target is of course the general

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population around the Cyberjaya campus (individuals such as lecturers, university admin

staff, security officers and others).

2. Market Size and Trends

The market size in MMU Cyberjaya campus is quite large as there are many students,

lecturers, admin managers and other elements of the campus population.

There are certain trends in the campus that have to be taken into consideration. The

population tends to buy food that is clean, of excellent service and well promoted.

3. Competition

Imogyzstan will definitely face some tough competition. The reason for this is they are

placed in Misri Plaza with 5 other businesses that also sell foods. The competitors are

also selling a variety of interesting products. This can also benefit Imogyzstan as the

population around MMU will be attracted to see all the stalls. The group aims to

overcome this competition by providing the best service and superior advertising. They

also hope that the uniqueness factor of their products will help them in getting over the

competitors.

B. Marketing Plan

1. Market Strategy

Imogyzstan applies many types of marketing strategies. The most obvious one is of

course to give out brochures (flyers) to the MMU population. They also plan to have

some dress codes. The dress codes are different from one day to another.

One example is the group will use football shirts on Monday and on Tuesday they will

use the yellow T-shirts. This will visually attract the customers to come to their stall.

Imogizstan will also carry out a delivery service to those who want the products to be

delivered to them. This type of service will be free of charge.

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2. Pricing

Imogyzstan have set the prices for their products taking into account several factors. The

price will be inexpensive but will also give them maximum gains.

For the huushuur they have set the price to be 1 huushuur for RM 1.20 and 2 huushuurs

for RM 2.00. This will benefit both the group and the customers. The customers will be

interested to buy 2 because the total utility will be more.

The toasted bread is priced RM 1.30 for 2 fillings such as cheese and chocolate and RM

2.00 for all.

The drinks that Imogyzstan sells are also of a cheap price. The Magic Fruit Juice which is

made of 100% pure orange only costs RM 2.00, the normal price of fruit juice in

Malaysia. The second drink, Pop Ice is sold for RM 1.50. Imogyzstan feels this is cheap

as Pop Ice is a limited edition Indonesian drink.

3. Advertising and promotions

The advertising is one of the most important parts of marketing. Imogizstan will promote

their products through brochures, flyers and of course the internet. Online presence is

also an important aspect. The group will advertise and promote online through Friendster,

Yahoo Messenger, MSN and their website, www.unitypreneurship.blogspot.com.

Section 4: Operations

A. Identify Location

The stall Imogyzstan are going to operate in is located at Misri Plaza in between the FIT

building, and the Grand Hall. This location is quite strategic as many students from FIT

pass by and the location is also near to the library.

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B. Proximity to supplies

The supplies that are needed for the group to conduct the business have been bought from

the local supermarkets such as Carrefour and Tesco at the very beginning of the selling

process. The ready supplies are light to carry and bring to the booth every morning. The

main problems are the water and electricity supplies. This has been solved though as they

have talked to the Facilities Management Division (FMD) and the FMD has explained

where they can get these needs.

C. Access to Transportation

Misri Plaza is located near the parking lot so it is quite easy for Imogyzstan to reach the

venue.

However, as it has been mentioned before the group has decided to buy the supplies for

their business at one time as to save up the capital used for the transportation expenses.

Section 5: Management Structure

Uddy Hadyawan will be the group leader. He will make sure everything is

in order, dividing jobs to everyone equally and basically guiding everyone.

Astrid Pratiwi and Mitta Mahardhika Rachman will be the secretaries.

They will record every activity done inside the group.

Guljan Musaeva and Andy Eka F.D. will be the treasures. They will hold

all the capital and keep track on the income and costs. Also they will develop

the financial accounts.

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Chandra Leo , Hafidz Hasra and Anthony Nur Hasan will be in the

Marketing Department. They will handle any promotions and research

developments for the project.

Sainbayar Ikhagvasuren , Enkhtsatsral Ulzii-Orshikh and Angeline will

be in the Production Department. They will make sure that the supply of foods

and drinks are enough to satisfy the existing demand.

Dewi Anggraini Winata and Berlian Karlina will be in the Online

Department. They will hold the online orders and online presence on the net as

well.

Alge Septriono and Ari Wibowo will be in The Logistics Department. Its

main objective is to deliver the customers’ orders in a precise time and handle

the utilities that are required by any departments during the project.

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Section 6: Finance

Cash Flow , Profit and Loss

Break-even Analysis

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Cash ReceivedHuushuur Toasted

BreadMagic Fruit

JuicePop Ice

Cash Sales 125*RM1.00=RM125*5days=RM625

20*RM1.7=RM34*5days=RM170

20*RM2.00=RM40*5days=RM200

15*RM1.5=RM22.5 *5days=RM12.5

Capital Received RM30*15=RM450

Total Cash Received

RM 1107.5

ExpenditureHuushuur Toasted

BreadMagic Fruit

JuicePop Ice

Direct Cost: Production RM145 RM79.18 RM84.09 RM15

Marketing RM 25

Transportation

RM 42

Indirect Cost: Utilities RM 35.6

Other Expenses RM 50

Total Cash Spent RM 475.87

Cash Balance RM 631.83

The group’s break-even Analysis is based on the average of the five-day total

sales figures by units, and by operating expenses. These are presented as per-unit

revenue, per-unit cost, and fixed costs. These assumptions will make for a more accurate

estimate of real risk. The group should break even by the second-third day of its

operation as it steadily increases its daily sales.

Break-even Analysis

Units Break-even 900 units

Revenue Break-even RM475.87

Average Per-Unit Revenue RM1.23

Average Per-Unit Variable Cost RM0.43

Estimated Fixed Cost RM85.60

Cost controls and Budgeting Plans The main objective of the group is to gain as much profit as possible incurring the

minimum possible expenses. Such reduced expenses may include transportation,

marketing, utilities. For example, the marketing-advertising expenses can be minimized

by the use of the potential of the internet facilities (messenger, online blogs, etc.).

For this reason the most part of the collected capital is going to be spent on the purchase

of the raw materials for the production of food and drinks.

In the end of the project, each group member should get his/her money invested initially

(RM30 each); then by subtracting this money and total expenses from the amount of the

Total Revenue the Net Profit is to be calculated.

Section 7: Critical Risks

A. Potential problems and risks

There are many problems that this type of business can create. The most serious one is

not attracting enough customers. Another problem is the customers not being interested

in the products offered for sale. Lastly, weather is one of the factors that should be

considered.

B. Alternative courses of action

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If Imogyzstan cannot attract the customers to their stall alternative courses of action must

be upheld. Imogyzstan can overcome this by carrying out effective advertising and

promotion. The group plans to overcome this by giving out free samples, so that people

can try out the tasting first. One alternative thing is to come to the customers instead of

them coming to the stall. As for the weather factor, Imogyzstan has got a canopy for the

booth and some umbrellas, which can be used both when it’s sunny and hot and when it’s

raining.

Section 8: Milestone Schedule

A. Timing and Objectives

Week 3

Tuesday 20 November 2007: 1st meeting.

Collecting ideas on the kind of business to conduct: food and drinks, services, trip,

selling T-shirts, etc.

Wednesday 21 November 2007: 2nd meeting.

Gathering ideas and potential information on 1. T-shirts; 2. Food and drinks.

Sunday, 25 November 2007: 3rd meeting

Sampled product Huushuur and decided the price of huushuur.

Week 4

Monday, 26 November 2007: 4th meeting

Decided products to sell : Huushuur

Toast bread

Fruit juice

Pop ice

Cancelled T-shirt selling (supply problems; high costs)

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Filled up “booking details” form in FMD.

Wednesday, 28 November 2007: 5th meeting

Treasurer : Capital agreement (RM30 from each group member)

Logistic : Bought ice cube

: Bought raw materials (from Tesco supermarket)

: Submission of the booking form.

Asking for signature from Mr.Omar (STAD).

Thursday, 29 November 2007: 6th meeting

Capital submission: RM 450

“Booking form”

problem in booking a place; desired location - in front of the library; however, the new

policy accepted by which students are not allowed to sell in the library foyer in week 5.

New problem: Canopy.

Saturday, 1 December 2007: 7th Meeting

Bought materials for products in Tesco and Carrefour.

Found the canopy for the booth.

Week 5

Monday, 3 December 2007

Started selling the products successfully.

Appendix

Example of our flyers also a satisfied customer

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