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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

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TABLE OF CONTENTS

No Content Page

1 INTRODUCTION TO THE BUSINESS 4-5

2 INTRODUCTION TO THE ORGANISATION 5-6


Vision
Mission
Objectives

3 MC’DONUTS ORGANIZATION CHART 7

4 MAN POWER PLANNING 8

5 SCHEDULE OF TASK AND RESPONSIBILITIES 9 - 10


(a) General Manager
(b) Administrative Manager
(c) Marketing Manager
(d) Operation and Production Manager
(e) Financial Manager

6 MARKET 10 - 12
TARGET MARKET
OBJECTIVES OF MARKETING

7 12 - 13
MARKETING PLAN

8 13 - 15
MARKETING AND SALES STRATEGIES
Product or Service Strategy
Price Strategies
Place Strategies
Distribution Strategies
Promotion Strategies

9 16 - 17
MARKETING ANALYSIS

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(a) INTERVIEW
(b) CROSS-EXAMINATION

10 17 - 18
RECOMMENDATION
CONCLUSION

11 19
APPENDIX

12 20
REFERANCES

INTRODUCTION TO THE BUSINESS

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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.
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

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

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• 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.

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MC’DONUTS ORGANIZATION CHART

GENERAL MANAGER
FATIMAH BT.MD ZAHID

ADMINISTRATION FINANCIAL PURCHASING MANAGER


MANAGER MANAGER MISAL ADAM HAZIQ B.
MISAL ZARITH BT. MISKAN MISAL TASNEEM MISARIZAN
BT.MISARIZAN

PRODUCTION MANAGER MARKETING


MISARIZAN B.MISKAN MANAGER
MISAL QISTINA MISARIZAN

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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

SCHEDULE OF TASK AND RESPONSIBILITIES

(b) General Manager


I. General Manager responsible to ensure employees job

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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.
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.

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(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.

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

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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 17,000
Other colleges;
- Politeknik, PTPTL college, Unisel
13,000

Working People;
- Government Sector 11,000
- Private Sector 9,000

Residents Area 10,000

TOTAL 80,000

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:

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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.
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

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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.

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.

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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.
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.

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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.

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

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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

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.

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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
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.

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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

APPENDIX

The location on the target market of the area


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

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Mc’ Donuts

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.

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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.

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