UHAS 3012 ENTREPRENEUR AND ENTREPRENEURSHIP DEVELOPMENT

SESI 2012/2013(2)
LECTURER: PM DR KAMARIAH ISMAIL

ASSIGNMENT 3: BUSINESS ACTIVITIES REPORT
GROUP PIPILALA COFFEE SHOP



LEADER: SYED MOHD IZMIR C12BE0042
GROUP MEMBERS: AMIR AL-HAMDI C12BE0005
CHIA GIN JIAH C12BE0008
CHU SHU ERN C12BE0009
DANIEL KAN XIN JIAN C12BE0010
LEE JUN XUAN C12BE0016

A) INTRODUCTION
This business report covers the process of setting up and administering the business of PIPILALA
coffee stall during a two day Entrepreneurship Fair held at Tasik Ilmu, UTM on the 20th and21st of April
2013.
Pipilala is a conceptual brand of coffee shop selling not only coffee but handicraft items as a
lifestyle shop. The process, finances and challenges faced are included in the report.


B) AIM
To experience the process of setting up a business and its execution
To calculate risks and manage resources properly.
To train and improve communication skills with people
To earn profit through correct entrepreneurship methods
To train and improve business skills and strategies among members



C) ORGANIZATIONAL CHART- PIPILALA COMPANY











CEO
SYED MOHD IZMIR
FINANCIAL
DIRECTOR
LEE JUN XUAN
MARKETING
DIRECTOR
CHIA GIN
JIAH
SALES
DIRECTOR
DANIEL
KAN
R&D,
OPERATIONS
DIRECTOR
AMIR AL-HAMDI
PUBLICITY
DIRECTOR
CHU SHU ERN

D) BUSINESS INTENTION
We did a research on different lifestyle or themed cafes in Asia and thus decided on a handicraft
themed lifestyle cafe. Handicraft themed cafe is unique to the Malaysian market and the components
for such cafes are easily available for new entrepreneurs like us. For a "handicraft" themed cafe, there
are 3 basic elements, which are:
1. Coffee
2. Handicraft & Accessories
3. Dessert
Therefore we have decided on selling all three kinds of products to present a better and more
thorough lifestyle coffee shop to our customers. Customers' needs are taken into consideration with the
availability of a wide variety of product choices.
I) RECIPE FOR COFFEE
We have researched online for recipes of coffee and have experimented before selling.
Our All Time Fave Recipe (white coffee):
3 tbs of Coffee Powder
1.5 tbs of Creamer
Evaporated Milk
2 tbs Sugar
Hot water
Cold water
Chocolate Bliss Recipe (chocolate):
5tbs of chocolate powder
2 tbs of Sugar
Water
Mochalicious (Mocha) :
2.5 tbs of Coffee Powder
3 tbs of Chocolate Powder
2 tbs of sugar
Evaporated milk
Water

ii) RECIPE FOR COCKTAIL PUDDING

2 -3 tablespoons cornstarch
1/2 cup sugar
3 eggs
1 (12 ounce) can evaporated milk
1 cup skim milk
1 teaspoon vanilla



















E) PREPARATION FOR BUSINESS
1. Purchasing of Coffee raw materials
2. Purchasing of handicraft goods
3. Preparing the packaging of the stock
4. Promotional and publicity of the shop

Clockwise from top left: The tools to make coffee; The menu board; The preparation of coupons and
tags for the products





i) COFFEE MAKING PROCESS






ii) PUDDING MAKING PROCESS

Put coffee,
sugar, creamer
and hot water
into a cup and
stir
Transfer the
mixture to
shaker and add
ice before
shaking
Transfer the
shake mixture
to the plastic
cup and add
water and ice
cube
Add fresh cream
and chocolate
rice before
serving the
customers


Mix together the
sugar and
cornstarch, add
the eggs. Beat
until the mixture
is well combined.

Read more: <a
href="http://www.
food.com/recipe/
custard-pudding-
245460?oc=linkb
ack">http://www.f
ood.com/recipe/c
ustard-pudding-
245460?oc=linkb
ack</a>
Bring the milk to
a boil over
medium -high
heat. Stir
frequently to
keep it from
sticking.

Read more: <a
href="http://www.
food.com/recipe/
custard-pudding-
245460?oc=linkb
ack">http://www.f
ood.com/recipe/c
ustard-pudding-
245460?oc=linkb
ack</a>
Add a little of
the hot milk to
the egg mixture,
and stir until
combined.


Pour the egg
mixture into the
milk.


Cook the
mixture until it
reaches desired
thickness,
stirring
constantly


Stir in the
vanilla.


Remove from
heat, and place
plastic wrap on
the surface of
the pudding
instead of just
around the pot.





F) BUSINESS PROCESS









CONFIRMATION FROM AUTHORITY
Confirmation of date and site of business
DISCUSSION OF BUSINESS PLAN AND SURVEY
Discussion and survey of types of Malaysian's favourite coffee
New recipe adjusted to customers' taste

ADVERTISEMENT
Advertise by telling friends
Online advertisement
INGREDIENTS BUYING
Survey several market market to seek for better price of basic
materials
Prepare the ingredients
PREPARATION BEFORE STARTING BUSINESS
Ready the stall
make the coffee
G) SALES AND MARKETING STRATEGY
i) PRICING
Since our customer base consisted mostly of students, we have decided on a slightly cheaper price tag
to appeal to our customers.
Affordable price for students
Cheaper price compared to competitors
A cup of 250cc coffee priced at RM3.00 onwards
The coffee types and price are listed down below:
TYPES HOT COLD
All Time Fave

RM 3 RM3.50
Chocolate Bliss RM 3 RM3.50
Mochalicious RM3.50 RM4

TOPPINGS (CREAM+DECOR RICE) N/A RM1

For the handicraft items, the pricing is slightly higher but nothing is sold more than RM20. These items
are especially handmade and come in a wide variety of colors and patterns and in limited quantity.
We also sell homemade puddings for a more complete package of our concept and these puddings are
sold at RM2 which is very affordable.
ii) PROMOTION
Our promotional strategy is to have discount coupons available for our customers depending on their
purchase
Below are the different promotional strategies for our different products
10% discount for handicraft and accessories if 2 cups of coffee is purchased
10% discount for coffee if more than purchase of handicraft and accessories above RM10
10% general discount if purchase 2 puddings
Secondly, our director of publicity decorated the booth to appeal to potential customers.
Thirdly, we have promoted through posters and word of mouth among students.
Fourthly, we have provided sample testing for the coffee to encourage potential customers to purchase
our coffee.
PRODUCT
We sold coffee drinks, handicraft, accessories and desserts under the brand PIPILALA as our concept of
handicraft themed lifestyle coffee shop in an expo.
COFFEE
The coffee is sold hot or cold depending on the customers' request.
We have different flavours to choose from and with an exquisite finishing of the drink comparable to
international chain of coffee shops
HANDICRAFT & ACCESSORIES
Handicraft and accessories are sourced from local suppliers with good quality
PUDDING
Homemade by our Director of R&D and Operations


H) FINANCIAL REPORT
PERCENTAGE OF EARNINGS




BASE COST FOR MATERIALS
Stock Model/pc Quantity
(Unit)
Total
Modal
Sold
Units
Excess
Units
Total Cash
Sales
Profit
Coffee RM 2 50 Rm100 50 0 RM
4x50=RM20
0
Rm100
Handicraft RM 15 20 RM 300 18 2 RM 20x18=
RM360
RM 60
Accessories RM 1 50 RM50 45 5 RM 5x
45=RM225
RM175
Pudding RM1 100 RM100 100 0 RM 2 x
100=RM200
RM100
TOTAL
EXCESS
RM35 TOTAL
GROSS
PROFIT
RM 335

OVERHEAD COST
TYPES QUANTITY PRICE PER QUANTITY TOTAL COST
SHAKER 2 RM 25 RM50
TAG & PRINTING 100 RM 0.10 RM100
PLASTIC CUPS AND
STRAWS
75 RM 0.40 RM30
PLASTIC BAGS 100 RM 0.03 RM3
SAMPLE TASTING 5 RM2 RM10
PETROL - - RM25
TOTAL OVERHEAD COST RM 218




% of earnings = Nett profit /Total Cash Sales x 100%
=RM 82/RM700 x 100%
= 11.71%

NETT PROFIT = GROSS PROFIT - OVERHEAD COST-EXCESS STOCK
= RM335 - RM 218-RM35
= RM82
I) WORK SCHEDULE
Saturday Sunday
10am-4pm All members Chia, JX, Shu Ern
4pm-10pm All members Daniel Kan, Syed Izmir, Amir


J) PROGRESS (JOURNAL)
DAY 1

We set up the stall on the day itself, i.e. the menu boards, banner and also the product display
rack. Our stall is quite eye catching with our boutique cafe theme of chalk signboards and the girls
wearing white shirts and the boys wearing red t-shirt. Our stall was frequented by mostly ladies due to
the attractive features of the accessories and handicraft display.
We attract our customers by calling out to passersby and giving out sample drinks to passersby.
Due to the hot day, many customers approached our stall to try the sample tasting and we promoted
our line of other products and most of the customers will take notice of other products and purchase
them.
Our sales progress is considered slow during the day as the weather is too hot and there were
not many customers at the fair.
During nighttime, there were more people frequenting the place so our sales were faster and
more promising. We have also changed into costumes and bringing the puddings around the place to
attract more customers. Our strategy worked as there was a significant increase in our sales.

DAY 2
During the morning there was a rain storm and the site was a mess. The tents were almost
flown away due to the strong wind. We have decided to close the stall temporarily to avoid causalities
to the members and to prevent the stock s from getting wet. Moreover, the expo has no visitors due to
the rainstorm.
We reopened our stall at 2 pm after the weather has cleared. Our sales were slightly lower
compared to the same time slot on the previous day. We had to throw out more promotional items for
sale. We had to slash price accordingly to increase the sales for all the items.
We extended our business hours to 1am on the last day to sell more of our handicraft and
accessories to the last minute shoppers and potential customers attending the closing talk (ceramah) at
the fair. We have successfully sold almost all of the stock to our customers.

K) CHALLENGES
1. Most people bought fruit flavoured drinks from competitors
2. The hot weather discourages potential customers to try our coffee
3. Our lot is at the corner end of the fair which is secluded and dark during nighttime
4. Unexpected rain storm

L) WAYS TO OVERCOME
1. We provided sample drinks for people to try
2. We put the samples on tray and walked around in the fair for people to try the samples
3. We did a lot of decorations and also costumes to attract people's attention
4. We had to close stall to protect the goods and due to safety reasons

M) SOURCE OF STOCK
Coffee
All of the ingredients involved were purchased at the lowest price we could find at Skudai area.
We went to Giant Supermarket to purchase the coffee powder, sugar, creamer, plastic cups and more
because of the consistent quality and cheaper price compared to other shops.
Handicraft & Accessories
The goods were sourced on internet from local suppliers and were sent to UTM via Poslaju. The
prices were the lowest we could find after comparing several suppliers.
Pudding
All of the ingredients were bought from a local baking shop in Taman Universiti by our Director
of R&D and Operations. He had vast experience in baking and his first choice was a shop that he
frequented for high quality and competitive ingredients.


O) LEARNING POINTS
i) We prepared a lot of things for the fair but there were still some things that were
unprepared and that caused some problems during the first day (plastic bags, spoons etc)
ii) We have a big variety of products which attracted different people but this also caused our
business focus to be scattered.
iii) We also learned to deal with customers' request, slashing prices when needed
iv) It is important to present a good image to the public (cleanliness, uniqueness factor)
v) There will always be risks that are involved with doing a business therefore the ability to
adapt and problem solving is essential to an entrepreneur.
vi) Most importantly, we must maintain a positive mindset as entrepreneurs.

P) CONCLUSION
All of us at PIPILALA put in a lot of effort and time in order to make this project a success and we are
proud and happy to accomplish a lot individually and as a group to make this lifestyle coffee shop a
success.
We learned a lot from the interview with the successful Mr Faidzal regarding coffee business and we
were inspired to become successful like him too.
Although there were some glitches here and there, we have managed to overcome some of the
problems with wit and problem solving skills.
The project will not be a success of there was no good cooperation and togetherness among all the
group members.
We are very happy that our lecturer, PM Dr Kamariah Ismail gave us this chance to work on our dream
project.
















Q) APPENDIX