OUM1203

SCHOOL OF NURSING AND ALLIED HEALTH SCIENCES

SEMESTER JANUARY 2011

OUM2103

ENTREPRENEURSHIP

MATRICULATION NO : 780723025624001

IDENTITY CARD NO. : 780723025624

TELEPHONE NO. : 0195761824

E-MAIL : fatimahmdzahid@oum.edu.my

LEARNING CENTRE : PERAK LEARNING CENTRE

1

OUM1203

TABLE OF CONTENTS

No Content Page

1 INTRODUCTION TO THE BUSINESS 4 - 5

2 INTRODUCTION TO THE ORGANISATION

Vision

Mission

Objectives

5 - 6

3 MC’DONUTS ORGANIZATION CHART 7

4 MAN POWER PLANNING 8

5 SCHEDULE OF TASK AND RESPONSIBILITIES(a) General Manager

(b) Administrative Manager

(c) Marketing Manager

(d) Operation and Production Manager

(e) Financial Manager

9 - 10

6 MARKET

TARGET MARKET

OBJECTIVES OF MARKETING

10 - 12

7 MARKETING PLAN 12 - 13

8 MARKETING AND SALES STRATEGIES

Product or Service Strategy

Price Strategies

Place Strategies

Distribution Strategies

Promotion Strategies

13 - 15

2

OUM1203

9 MARKETING ANALYSIS

(a) INTERVIEW

(b) CROSS-EXAMINATION

16 - 17

10 RECOMMENDATION

CONCLUSION

17 - 18

11 APPENDIX 19

12 REFERANCES 20

3

OUM1203

INTRODUCTION TO THE BUSINESS

The revolution of variety types and attractive design of doughnut inspired us to

develop a doughnut shop in the middle of urban area. We are trying to realize the people that

doughnuts is not just a sweet ready-to-eat snack but it is such a healthy and delicious snack

which are suitable to fulfill the customers needs and wants nowadays.

We choose Mc’ Donuts as our business’ name which means it will brings the power

of cheers to everyone with the various attractive colors and design of the doughnuts. We

believed that the attractive colors and designs will attract the number of customers especially

children. The types of doughnuts that we provides are Black Jack, Cheese Miss You,

Oreolgy, Crunchy Crunchy, Why Nut?, Coco Loco, Berry Me, Mc Crown Oreo, Tira Miss u

and Pearl White.

Business involving food products always have high demand in local markets. That is

why our company chooses to get involve in run the doughnut shop business. We could see

the bright future of food market in Malaysia as the number of food industry is being increase

from the day to day. We also believed that the market of doughnuts is always getting a high

demand from all ages based on the surveyed that we had make before.

Furthermore, nowadays the Malaysia products have a potential to be exported based

on the increasing of demands from the outside country from year to year. This may

affluences us to wider the business and exported our product to outside country in 5 or 7

years later. Thus, it will increase Malaysia economy while helping local entrepreneur to

success in their business by gain a lot of profits.

Other than that, our company is producing a new revolution of doughnut by make it

tastier, smooth, sweet and confirmed as ‘Halalan Toiyibah’s product’. This is because our

company concerned about what is important to be consumed by our will be customer as they

are majority Muslims in Malaysia population.

Mc’ Donuts used vanilla and chocolate as the main ingredients of the doughnut.

Besides that, we also provide various types of drinks such as cappuccino, latte, mocha, milo,

soft drinks and juice for the beverages.

4

OUM1203

Our company will be open on 1st March 2011. It is located at Lot G-32, West Wings,

Shah Alam City Center, Shah Alam, Selangor. The selection of location are made by the

population and the lifestyle of the people there which is most of them prefer to have sort of

simple, quick and healthy food as most of they are consist of working people and students.

Furthermore, we have a great package for the kids as we all know that they love to eat

something which is sweet and attractive. The package is included ice cream doughnut and

Milo as a beverage and toys as a gift.

We also provide a membership card for our customer which is valid for one year

with a free registration. With the registered as our membership card, the customer will get

10% discount for the purchase of doughnut at our stores. We also provide a reward for the

membership as the customers will get the points for every purchase and the points can be

redeem at anytime.

Finally, with a proper managing plan we believe that our doughnut shop can compete

with other famous shop such as Dunkin’s Donuts, Big Apple, J. Co and many more in term of

services and the quality of the doughnuts produce.

INTRODUCTION TO THE ORGANISATION

VISION

To place our product which is doughnut at the same level with other products that

already establish in the market.

To be the tastiest doughnut that can give a precious memorable in every bite.

MISSION

To gain profit.

To be the most delightful Malaysian doughnuts where can compete with other

international product.

To fulfill customer need and wants by give the best services to the customer.

OBJECTIVES

5

OUM1203

Improving the business management’s level from time to time.

Ensuring the business operates smoothly with minimum operation cost and maximum

profit gained.

Managing the administration workflows clearly to prevent problems occur.

Providing efficient and productive working condition with systematic management.

6

OUM1203

MC’DONUTS ORGANIZATION CHART

GENERAL MANAGERFATIMAH BT.MD ZAHID

ADMINISTRATIONMANAGER

MISAL ZARITH BT. MISKAN

FINANCIAL MANAGER

MISAL TASNEEM BT.MISARIZAN

PURCHASING MANAGERMISAL ADAM HAZIQ B.

MISARIZAN

PRODUCTION MANAGERMISARIZAN B.MISKAN

MARKETING MANAGER

MISAL QISTINA MISARIZAN

7

OUM1203

MAN POWER PLANNING

No Position Number Of Staff

1 General Manager 1

2 Administrative Manager 1

3 Production Manager 1

4 Financial Manager 1

5 Marketing Manager 1

6 Purchasing Manager 1

7 Bakery 2

8 Waiter 2

9 Cashier 1

10 Rider 2

Total 13

8

OUM1203

SCHEDULE OF TASK AND RESPONSIBILITIES

(b) General Manager

I. General Manager responsible to ensure employees job

II. Performing-perform job efficient to the task given.

III. Make suggestion or recommendation that could enhance operations.

IV. Setting up the objectives, vision and goals to ensure the business could gain the

profit.

V. To ensure the business runs smoothly and systematic, according to the business

management.

VI. Control and monitor the decision and plans that had been taken and care any

corrective action.

(b) Administrative Manager

I. To ensure the working areas is comfortable and safe

II. To ensure all the business reports and records are in safe keeping for the future

retrieval.

III. To take care of the employees such as provide medical treatment.

IV. Administrative Manager must plan an internal training to the develop employer skill,

ability and capability.

(c) Marketing Manager

I. To directing and arranging marketing strategy for business reputation and future

profit.

II. Responsible to analyze and study organization market target and size and further on to

evaluate, select and choose the target market.

III. Analyze and search the opportunities in the market to extend profit.

IV. Information regarding the services to the clients and other people.

(d) Operation and Production Manager

I. Responsible to plan and perform internal and external activity for the business

workflow.

II. To ensure all the business operation running with smooth and systematic way.

9

OUM1203

III. Responsible to arrange and ensure the equipments workers are sufficient and in good

condition and arrange the supply of raw material, which make at the right time, places

and quantity

IV. Arrange and prepare the task of workers with systematic and regulate rules in the

operating section.

(e) Financial Manager

I. To prepare the financial report of inflow, outflow the business every time make fairly

and systematic.

II. As an accounting adviser to the organization and ensure the preparation plan of

income and expenditure to whole the business.

III. Plan the financial activities and make sure the case liquidity is sufficient for day

affairs.

IV. Evaluate and analyze each department financial decision and compare with and

evaluate constantly the financial activity.

V. To make sure the business is not holding high liabilities and last but not least to

conduct and deal in bank concern for he accounts of the business.

MARKET

Mc’ Donuts is involved in the production of variety ready-to-eat doughnuts. Our

business has identified its target markets as the working people, students and residents of the

housing area within 20 kilometres radius of our shop.

Our estimation in year 2011, the market size of our company is medium because the

public is not aware yet about our business as we just begin the operation. For the short term

planning, Mc’ Donuts decided to spend the market and selling our product to the customer in

the Shah Alam area only. Besides that, our company also take an effective production by

produce the best and high quality of doughnuts. This is important because the customers’

satisfaction is affected our increase or decrease of the profit.

10

OUM1203

TARGET MARKET

Target market can be defined as the group of consumer that have needs and want that

can satisfy by the business though the supply of goods and services. Customers will choose

our product based on the ability of our good performance on those aspects. The choosing of

the location depends on the target market of the area. We have determined the target market

as follows: ( for location and map please refer to appendix )

TARGET MARKET NUMBER OF PEOPLE

School Students;

- Primary School

- Secondary School 10,000

10,000

University;

- UiTM Shah Alam

Other colleges;

- Politeknik, PTPTL college, Unisel

17,000

13,000

Working People;

- Government Sector

- Private Sector

11,000

9,000

Residents Area 10,000

TOTAL 80,000

11

OUM1203

OBJECTIVES OF MARKETING

The marketing of Mc’ Donuts views the consumer focal point of all marketing

activities. We have studied the consumer’s behavior to determine consumer needs and wants

and then organize and integrate all activities within the firm achieving organizational. In

marketing concepts, there are three mains objective:

a) Consumers orientation

b) Integrated or total company effort

c) Achievement of the organizational goals.

1. To introduce the new revolution of donuts in the market.

2. Enter the market with the greatest performance and achievement.

3. To provides a quality production at a reasonable price.

4. To gain a high profit from the business.

MARKETING PLAN

Marketing is defined as the activities that are carried out systematically to encourage

and increase sales of products or services as long as the activities are in line with religious

and ethical practice while market is defined as any entity that has the purchasing power to

acquired good and services to fulfill its needs and wants. The marketing process involved the

activities of defined the marketing concept, identify the target market, determine the market

share, develop the sales forecast, developing the marketing strategies based on the service,

price, place (distributors), promotion and preparing the marketing budget.

The total marketing activity needs to be planned and implement in a systematic

manner in order to achieve the business objectives. Without a systematic effort, resources

such as time, money and manpower can be wasted, thus affecting business performance and

profit. A systematic marketing effort is essential to ensure that customers are attracted and

motivated to purchase the product or service offered. This is particularly important in

encouraging purchase by first-time customer or in promoting new product or services.

12

OUM1203

Systematic marketing efforts help to sustain and increase sales by encouraging repeat

purchases.

In Mc’ Donuts, we are trying to satisfy our customers by providing a high quality of

variety donuts for those who are prefer to take a simple but a healthy food. We have chosen a

systematic location, reasonable price and hire a skillful worker for the best services as our

strategies to attract and promote our business. Furthermore, we also give a chance to our

customer to give a feedback in term of our quality and services. Then, the comments will be

use for us to make any adjustment to improve our product. So, with the knowledge and

experiences we have, we hope that our effort to produce a well-known product with the best

quality will be achieved soon.

MARKETING AND SALES STRATEGIES

Promotion is very important in order to aware the public about the existence of the

business. Mc’ Donuts has decided to implement an effective promotion effort to attract the

number of customers to our business. Thus, it will affect the business performance by

increasing our sale and also increases the profits. The marketing and sales strategies are as

follows:

1. Product or Service Strategy

Mc’ Donut come up with product strategy by produce doughnuts that make from

quality flour and flavour in order to gain customers. We also provide variety of attractive

design for the doughnuts.

Besides that, our doughnuts design also plays an important role in satisfying and

delighting the customers. We are provided the easy-to-carry box with every purchase of

doughnuts. The box is specially design with a protection characteristic such as water resistant

to avoid the doughnut from being spoilt.

13

OUM1203

Besides that, we also emphasize our quality of service by give the customer a better

service in order to gain their satisfaction.

2. Price Strategies

Mc Donuts decided to put the price based on cost-based pricing by put the most

reasonable price which customer willing to pay for our product. We believe with this

strategy, we can attract more customers come and buy our product from time to time.

ITEMS COST PRICE MARK-UP % SELLING PRICE

Doughnut RM 2.10 20 % RM 2.50

Mocha RM 1.40 440% RM 7.50

Cappuccino RM 1.20 525% RM 6.30

Latte RM 1.40 440% RM 7.50

Milo RM 1.00 370% RM 3.70

Fruit Tree Juices RM 1.50 85% RM 2.80

Canned Drinks RM 0.80 175% RM 2.20

Mineral Water RM 0.60 265% RM 2.20

3. Place Strategies

Mc Donuts is located at the strategic place where located at the middle of Shah

Alam city centre. Furthermore, there have school, university and a few institutions in the

area which consist of 55,000. There also have many residents area which consist of about

10,000 people. Shah Alam also provides complete facilities in term of transportation such as

train, bus and taxi.

4. Distribution Strategies

i. Direct to Consumer

Manufacturer Consumer

We will produce the doughnuts and then put them at the display rack for customer made

their selection. Thus, we do not need any third party to distribute our product to the market.

14

OUM1203

5. Promotion Strategies

Mc Donuts will use an effective promotion effort in order to gain customer

awareness for the existence of our product. We have determined many ways to

promote our product in order to acknowledge the public some information about our

establishment. This is some other ways the promotions are made:

i. Sign board

We will put the signboard in front of our premise and at the top of the premise.

The purpose is to make the public aware and acknowledge the existence of our

business.

ii. Banner

Mc Donuts will make the banner to introduce our product to the customer. We

will put our banner at the strategic place which the public can see and read our

poster easily such as put the banners at the pillar along the road. So that, the

road user will easily aware about the promotion that we make. We will also

put some details and information about Mc Donut and our products.

iii. Brochure

We will also make the brochure to be given away to the publics. We will give

the brochure at shopping complex and other public spot.

iv. Business card

Business card is important to introduce our business to the public. Normally,

we will put important information such as address of the premise, person to be

contact, phone number and the company website address.

15

OUM1203

MARKETING ANALYSIS

Mc’ Donuts has analyzed all the opportunities based on the market information. We

had collected all the information by using several methods that can help us to identify all the

opportunities for our business in market. We used formal and informal methods such as:

(a) INTERVIEW

We have interview several of the businessmen which have been being in the product

manufacturer for a long time. From the interview, we have gain many experiences and

information on how to manage and operate the food business. They also give us some useful

tips on how to maintain the quality of product in order to increase the number of customer

from day to day.

(b) CROSS-EXAMINATION

We have made some survey from the resident area in the target market and determine

their needs and wants of the desire foods. From the survey, we have gained all of the

expected customers’ opinions and trying to give the best product to satisfy them. Besides that,

we also analyze our own strength, weakness, opportunity and threaten in this business which

is:

i) Strength

- Malaysia product

- Halal product

- Attractive appearance

- Strategic location(Shah Alam City Center)

ii) Weaknesses

- New brand which take a few years to get a well-known brand

16

OUM1203

iii) Opportunity

The Malaysian trend which are prefer to take a fast food due to many commitment

nowadays.

The Halal product comes from the Muslim Bumiputera

iv) Threaten

Have to compete with the well-known donuts brand

Compete with other fast food outlet.

All by this surveys, we have found a conclusion from our analysis. We found that

there are still space for us to enter the market as to fulfill the costumers need and want.

RECOMMENDATION

For the next 2 years and above, we assume that our company market size will be

increase. This is because the people have already known our product due to the promotion

strategies that we will do and thus can increase our profit. In long term plan our company

plan to expand our product to all part in Malaysia. To make our company more competency

and equivalent with other company, we also do some surveys and researches.

CONCLUSION

To set up a business, entrepreneur required to prepare a business plan to enhance the

understanding, analysis and evaluation ability in an organization focusing on market analysis

and marketing and sales strategies to improve the organization competitiveness in the

marketplace. The business plan is prepared for various reasons.

Among the main reasons are, to allow entrepreneur to view and evaluate the proposed

business in an objective, critical and practical manner. The collapse of many business

ventures can be attributed to the decision and planning of the entrepreneur who really more

on emotions and gut feelings rather than objectives and relation considerations. With a

business plan the entrepreneur has solid and well grounded information to supplement the

17

OUM1203

planning and decision making process. This way, the entrepreneur has a more realistic and

practical business plan.

Business plan is use to analyze and evaluate the viability of a proposed venture. It can

be use as a basic of determining the viability of a purposed business venture. The information

gathering and analysis that is done as a part of preparing the business plan can give an early

indication as to the viability of the project. Hence, the entrepreneur can make a better

judgment before investing in the proposed venture.

It is used to convince relevant parties of the investment potential of the project. The

business plan can be used as a communication tool to convince. The availability of a business

plan will boost the confident of interested partially or fully the cost of the venture. Potential

investors include financial institutions, private or individual investors, suppliers and

government agencies.

Lastly, it can be use as a guideline for managing the business plan. In preparing the

business plan, the entrepreneur has thought out and laid down the plans and the strategies for

running the venture. When the venture becomes a reality, the plans and strategies outlined in

the business plan will be important benchmark to help the entrepreneur gauge their progress.

Words: 3,090

18

OUM1203

APPENDIX

The location on the target market of the area

(West Wings, Shah Alam City Center, Shah Alam, Selangor).

Mc’

19

OUM1203

REFERENCES

Ab Aziz Yusof & Zakaria Yusof. (2004), Prinsip Keusahawanan (2nd ed.). Kuala Lumpur:

Pearson Prentice Hall.

Griffin, Ricky W. & Ebert, Ronald J. (1996). Business. (4th ed.). UK: Prentice Hall.

Longenecker, J.G., Moore, C.W. & Petty, J.W. (2003). Small Business Management: An

Entrepreneurial Emphasis. South Western: Thomson.

Norashidah Hashim et all. (2008). Entrepreneurship (6th ed.). Open University Malaysia:

Meteor.Doc.Sdn.Bhd.

UITM Entrepreneurship Study Group. (2006). Fundamental of Entrepreneurship.UK:

Pearson Prentice Hall.

20