Professional Documents
Culture Documents
FUNDAMENTAL
(ACC 1511)
NAME
SITI FARHANA NABILAH BT JUMALI
AFIFAH NABILAH BT MOHAMAD SAFEI
SHARINA AZLEEN BT ERMAN EFENDI
NUUR NAJIHAH BT RIDZUAN
RUZANA BT SUHAIMI
:2
Session
: Semester 1(14/15)
MATRIC NO.
1321592
1321976
1323568
1320444
1322836
TABLE OF CONTENTS
DETAILS
PAGES
2-3
TABLE OF CONTENTS
1.1.2 MOTTO
1.1.3 MISSION
1.1.4 VISION
1.1.5 PRODUCTS
1.1.6 MANAGEMENT
ORGANIZATIONAL CHART
JOB SCOPE
6
6-7
8
8
9
9 - 10
10 - 11
11
2.3 COMPETITION
3.0 STRATEGY AND IMPLEMENTATION
12
12
12
12 - 13
13 - 14
14
14 - 15
15
15
16
16-17
-2-
17-18
17
17 -18
18 - 19
19
19 - 20
21 - 22
23 - 25
26
27
5.3.6
SELLING
AND
ADMINISTRATIVE
27
EXPENSE BUDGET
5.3.7 CASH RECEIPT BUDGET
28 - 29
29 - 30
30-31
32
CVP ANALYSIS
WITH
MULTIPLE
32
PRODUCTS
5.4.2
31
WEIGHTED-AVERAGE
UNIT
CONTRIBUTION MARGIN
32
33-34
CONCLUSION
35
APPENDIX
36
-3-
1.1.1 LOGO
1.1.2 MOTTO
Our company motto is A great taste that will make you happy
-4-
1.1.3 MISSION
We ensure that each of our customers receives professional, friendly and courteous
service.
We make sure that our company provide food at a fair price, nutritional, well prepared
meals by using only quality ingredients.
We insist to sell all of our products within four weeks.
1.1.4 VISION
We hope to widen our business and serve the students with the best service.
We hope to be a profitable and competitive business in the future.
1.1.5 PRODUCTS
WE CHEF will offer the studentswith manufacturing type of products.Students will
have the choice ofthree types of sandwiches which are mackerel sandwiches, egg mayo
sandwiches, and chicken and cheese sandwiches. We use halal and tasty readymade bread for
all types of the sandwiches. The specific ingredients such as ham, mackerel, mayonaise,
cheese and egg are also bought from the halal manufacturers.
Mackerel Sandwiches
-5-
1.1.6 MANAGEMENT
WE CHEF will be lead by Siti Farhana Nabilah bt Jumali as the managing director
and followed by Sharina Azleen bt Erman Efendi as the administration manager, Nuur
Najihah bt Ridzuan as the operating manager, Afifah Nabilah bt Mohamad Safei as marketing
manager and Ruzana bt Suhaimi as the financial manager. Each of them posses their own
skills and talents which make them qualify to fill in that certain position.
ORGANIZATIONAL STRUCTURE
Siti Farhana
Nabilah Binti
Jumali
Directing Manager
Ruzana Binti
Suhaimi
Financial
Manager
Nuur Najihah
Binti Ridzuan
Operation
Manager
JOB DESCRIPTION
-6-
-7-
1.2.2CAPITAL INVESTMENT
CASH
Since WE CHEF is a partnership business between five shareholders, every
shareholders will be contribute some cash amounted to RM 20.00 for capital investment. So,
the total fixed capital contributed by all shareholders is RM100.00.
EQUIPMENTS
As a start-up business, WE CHEF will require some equipments and capitals to begin
operations. Some of the equipments are:
Assorted knives
Cutting board
Food containers
Dishesware
-8-
ENVIRONMENTAL FACTORS
1. Physical: Cafes at the female hostel normally close their business at 10 p.meveryday.
This early closing time is being a problem for some students who come back to their
room late at night due to some reasons such as attending programs and events, having
mock trials or interviews, andpreparing for their assignments. Under this
circumstances, they normally have not take their dinner yet. If they can find any food
vendors at this time, it will be great for them.
2. Legal: Based on university rules and regulation, there is no any legal laws specifies
that any businesses conducted by the students at the hostel must have permission from
the Mahallahs Principal. This is a great opportunity for WE CHEF to run the
business smoothly at mahallah.
3. Social: According to a study in the journal Psychosomatic Medicine , it is said that
intellectual work results a big increase in caloric intake; which means, people will feel
more hungry when they do intellectual work such as studying. Students are usually
-9-
studying at night for their quizzes and examinations and this will make them feel
hungry. Normally, most of the students will be in their room at night after being out
for the whole day. Providing foods for them on door-to-door basis during that time
will be the best option to help them satisfy their needs.
With these factors, WE CHEF has decided to concentrate the market only at the selected
female hostels which are MahallahAsiah, MahallahAminah and MahallahSafiyyah before
expanding it to other hostels in IIUM. We will create sales from these three female hostels by
providing door-to-door selling services since we target to have a high turnover from the sales.
Therefore, our market analysis chart below represents this market strategy:
Market Analysis
Mahallah Asiah
Mahallah Aminah
Mahallah Safiyyah
Others
- 10 -
on door-to-door basis. There were some businesses who sold foods on door-to-door basis
during this period in the previous semester. And this kind of food businesses is growing up
every semester due to the high demand from the students.
2.3 COMPETITION
Since the business in food industry is always referred as a low risk business which gives a
high turnover, there are other vendors who actively involve in the same kind of business as
WE CHEF.
Fast Food Restaurants: Some fast food restaurants such as Dominos Pizza, KFC,
McDonald, Papa John and Pizza Hut provide delivery services. Some students really
love to eat fast food at night and they will prefer to order foods from the fast food
restaurants.
Hostels Cafe: Eventhough cafes at female hostels normally close early, some
students will buy foods from the cafes (before they close) and keep the foods for
supper. Besides, some of the students will ask their male friends to buy food for them
when they feel hungry in the midnight since the cafes at male hostels are usually
operating until 2 a.m.
Other Door-To-Door Vendors: There are some food vendors who also operate their
businesses on door-to-door basis. Plus, even some of them sell the same type of food
as what WE CHEF sell.
- 11 -
WEAKNESSES
snacks.
time.
OPPORTUNITIES
THREATS
WE CHEF offers a light foods which is suitable to be eaten at night. We provide a handmade
sandwiches which we make by ourselves using the halal and tasty ingredients. There are three
types of sandwiches which are mackerel sandwiches, chicken and cheese sandwiches, and
egg mayo sandwiches. Students can choose from those three types of sandwiches according
to their preferences.
- 12 -
PRICE
The prices of the sandwiches that we offer are cheaper and affordable. Students usually prefer
for a cheaper food to save their daily budget. The price of the sandwiches are different
according to the their types as follows:
PLACE
As for business places, we choose to operate at MahallahAsiah, MahallahAminah and
MahallahSafiyyah. This is because our production process will take place at MahallahAsiah.
So, it will be easy for us to do the selling process at the nearby mahallah.Besides, students
usually stay in their roomat night. This kind of situation is an advantages to us since we are
doing the the selling process on door-to-door basis.
PROMOTION
To boost up our sales, we advertise our products on the social medias such as
Whatsapp and Facebook. We also distributes posters and flyers to promote and inform the
mahallah residents about our business.
- 13 -
1. Door-to-door:We use door-to-door basis selling process to sell our products. Since
the students normally stay in their rooms at night, this type of selling process is more
effective to be used.
2. Room Services: Sometimes, we also take order from customers and deliver the
products to their rooms. This is one of the effective way that can be used to sell
products since students do not need to leave their rooms to get foods that they want.
These are the following process that required for the production of Mackerel
Sandwich, Egg Mayo Sandwich and Chicken & Cheese Sandwich:
STEP 1: The Operation department of WE CHEF will deal with the suppliers and place the
order of ingredients/raw materials need to be use for making each type of the sandwiches.
STEP 2: Then department will choose and select the best quality of raw materials to produce
sandwiches.
STEP 3: The department will purchase all the raw materials that have been chosen for
making the sandwiches.
STEP 4: After purchasing the raw materials, we will divide all the ingredients based on the
type of sandwiches .
STEP 5: Next, we mixed the ingredients together based on the types of the sandwiches.
STEP 6: Packaging process take place to ensure the sandwiches are well stored and to ensure
that the sandwiches supply to the customers is the best quality of sandwiches.
- 14 -
STEP 7: Put the label on the packaging to differentiate between each types of sandwiches.
STEP 8: Sandwiches are ready to sell to the customers at Mahallah Aminah, Mahallah Asiah
and Mahallah Safiyyah. We do delivery service to distribute and sell the sandwiches to the
customers (Timesthat required to mixed the ingredients and do packaging is about 3 hours).
TIME
SUNDAY
10P.M
THURSDAY
TO
12A.M
MAHALLAH
WORKERS
QUANTITY OF
SANDWICHES SELL
Aminah
40
Asiah
40
Safiyyah
20
- 15 -
Mackerel
Egg Mayo
SANDWICHES
Sandwich
Sandwich
Sandwich
INGREDIENTS
Margarine
Mayonnaise
(RAW MATERIALS)
QUANTITY
TYPE OF COST
(RM)
Bread
3.40
30
Variable
Mackerel
5.70
14
Variable
Cheese Slices
6.00
10
Variable
Chicken Ham
3.80
20
Variable
Mayonnaise
8.30
Variable
Eggs
5.40
Variable
Margarine
4.70
Variable
Plastics
7.50
Variable
Direct Labor
0.50
Per Hour
Variable
Indirect Labor
20.00
Per Week
Fixed
- 16 -
Rent
1.00
Per Week
Fixed
Transportation
10
Per Week
Fixed
Advertisement
2.00
Per Month
Fixed
Types of Sandwiches
Mackerel (RM)
Bread
0.15
0.15
0.15
Mackerel
0.36
Cheese Slices
0.27
Chicken Ham
0.34
Eggs
0.15
Mayonnaise
0.04
Margarine
0.02
Plastics
0.08
0.08
0.08
Direct Labor
0.02
0.02
0.02
0.63
0.86
0.44
Per Unit
Indirect Labor
Price (RM)
Quantity
20.00
Per Week
80.00
- 17 -
Rent
1.00
Per Week
4.00
Transportation
10
Per Week
40.00
Advertisement
2.00
Per Month
2.00
126.00
46.34
0.38
1.20
42.86
0.45
- 18 -
1.50
138.10
0.57
1.20
Month
Mackerel
Sandwiches Revenue
Budgeted Sales(units)
Selling Price
20
68
68
68
224
RM1.20
RM1.20
RM1.20
RM1.20
RM1.20
RM24.00
RM81.60
RM81.60
RM81.60
RM268.80
Mackerel Sandwiches
Sales Revenue
- 19 -
24
66
66
66
222
RM1.50
RM1.50
RM1.50
RM1.50
RM1.50
RM36.00
RM99.00
RM99.00
RM99.00
RM333.00
Chicken Cheese
Sandwiches Sales
Revenue
Egg Mayo
Sandwiches
Budgeted Sales(units)
Selling Price
20
66
66
66
218
RM1.20
RM1.20
RM1.20
RM1.20
RM 1.20
RM24.00
RM79.20
RM79.20
RM79.20
RM261.60
RM259.80
RM259.80
RM259.80
RM863.40
RM84.00
- 20 -
Month
20
68
68
68
224
20
68
68
68
224
Inventory
Units to be Produced
20
68
68
68
224
Mackerel
Sandwiches Revenue
Sales (units)
Add: Desired Ending
Inventory
Total Needed
Less: Beginning
- 21 -
24
66
66
66
222
Inventory
Total Needed
24
66
66
66
222
Inventory
Units to be Produced
24
66
66
66
222
20
66
66
66
218
Inventory
Total Needed
20
66
66
66
218
Inventory
Units to be Produced
20
66
66
66
218
64
200
200
200
664
Less: Beginning
Egg Mayo
Sandwiches
Sales (units)
Add: Desired Ending
Less: Beginning
Total Units to be
Produced
- 22 -
Mackerel Margarine
Cheese
Chicken
Slices
Ham
Eggs Mayonnaise
Plastics
Week 1
(64 units to be
produced)
produced)
Production
30
14
10
20
Week 2
(200 units to be
produced)
Week 3
(200 units to be
produced)
Week 4
(200 units to be
Requirements
- 23 -
Add : Desired
Ending
Inventory
Total
30
14
10
20
30
14
10
20
Requirements
Deduct :
Expected
Beginning
Inventory
Production
Requirements
(units)
- 24 -
We Chef Partnership
Direct-Material Budget
For the Month Ending 30th November 2014
Anticipated
Bread
Mackerel
Margarine
Weeks
Month
Price (RM)
3.40
3RM3.40
9RM3.40
9RM3.40
9RM3.40
=RM10.20
=RM30.60
=RM30.60
=RM30.60
2RM5.70
4RM5.70
4RM5.70
4RM5.70
=RM11.40
=RM22.80
=RM22.80
=RM22.80
1RM4.70
5.70
4.70
=RM4.70
Cheese
6.00
Slices
Chicken
3.80
Ham
Egg
Mayonnaise
5.40
8.30
7.50
102.00
79.80
4.70
1RM6.00
3RM6.00
3RM6.00
3RM6.00
=RM6.00
=RM18.00
=RM18.00
=RM18.00
2RM3.80
6RM3.80
6RM3.80
6RM3.80
=RM7.60
=RM22.80
=RM22.80
=RM22.80
1RM5.40
2RM5.40
2RM5.40
1RM5.40
=RM5.40
=RM10.80
=RM10.80
=RM5.40
1RM8.30
=RM8.30
Plastics
(RM)
60.00
76.00
32.40
8.30
1RM7.50
2RM7.50
2RM7.50
2RM7.50
=RM7.50
=RM15
=RM15
=RM15
52.50
RM61.10
RM120
RM120
RM114.60
RM415.70
- 25 -
Production in
Week 1
Week 2
Week 3
Week 4
Month
64
200
200
200
664
0.03
0.03
0.03
0.03
0.03
1.92
19.92
22
RM0.50
RM0.50
RM0.50
RM0.50
RM0.50
RM2.00
RM3.00
RM3.00
RM3.00
RM11.00
units
Direct labor
hours
Labor hours
required
Guaranteed
labor hours
Labor hours
paid
Wage rate
Total direct
labor cost
- 26 -
Week 2
Week 3
Week 4
Month
RM20
RM20
RM20
RM20
RM80
RM21
RM21
RM21
RM21
Indirect Labor
Rent
4
RM84
Week 2
Week 3
Week 4
Month
64
200
200
200
664
RM 0
RM 0
RM 0
RM 0
RM 0
Variable expense
RM 0
RM 0
RM 0
RM 0
RM 0
RM10
RM10
RM10
RM10
RM40
Sales in units
Total expense
RM12
RM10
RM10
RM10
RM42
Cash disbursements
RM12
RM10
RM10
RM10
RM42
- 27 -
Month
2
RM24.00
RM24.00
Sandwiches
36.00
36.00
24.00
24.00
RM81.60
81.60
CheeseSandwiches
99.00
99.00
79.20
79.20
Chicken and
RM 81.60
81.60
Sandwiches
99.00
99.00
79.20
79.20
- 28 -
Mackerel Sandwiches
RM81.60
81.60
Sandwiches
99.00
99.00
79.20
79.20
RM84.00 RM259.80
RM259.80
RM259.80 RM 863.40
Month
RM30.60
RM30.60
22.80
22.80
RM10.20 RM30.60
22.80
RM102.00
Mackerel
11.40
Margarine
4.70
Cheese Slices
6.00
18.00
18.00
18.00
60.00
Chicken Ham
7.60
22.80
22.80
22.80
76.00
Eggs
5.40
10.80
10.80
5.40
32.40
Mayonnaise
8.30
Plastics
7.50
15.00
15.00
- 29 -
15.00
79.80
4.70
8.30
52.50
RM61.10 RM120
RM120
RM114.60 RM415.70
RM 2.00
RM 3.00
RM 3.00
RM3.00
RM 11.00
21.00
21.00
21.00
21.00
84.00
12.00
10.00
10.00
10.00
42.00
Disbursement
RM35.00
RM34.00
RM34.00
RM34.00
RM137.00
RM96.10 RM154.00
RM154.00
RM148.60
RM552.70
Production Overhead
Selling and
Administrative
Total Other Cash
Week 2
Week 3
Week 4
RM193.70
RM299.50
259.80
259.80
Month
Beginning cash
balance
RM 100
RM87.90
RM100
Add: Cash
Collection
84
259.80
- 30 -
863.40
Total Cash
Available
RM184.00
RM347.70
RM453.50
RM559.30
RM963.40
Less: Cash
Disbursements
(96.10)
(154.00)
RM87.90
RM193.70
(154.00)
(148.60)
(552.70)
RM410.70
RM410.70
RM299.50
RM863.40
RM415.70
11.00
84.00
(510.70)
RM352.70
expenses
Net Income
RM310.70
- 31 -
Selling
Unit Variable
Unit
Units
Price
Cost
Contribution
Produced
Margin
Mackerel Sandwiches
Chicken and Cheese Sandwiches
RM1.20
RM0.63
RM0.57
224
1.50
0.86
RM0.64
222
0.44
RM0.76
218
1.20
664
Description
Units Produced
Mackerel Sandwiches
224
33.735
33.74
222
33.434
33.43
Sandwiches
Egg Mayo Sandwiches
218
32.831
32.83
Total Sold
664
100
- 32 -
Mackerel
Contribution Margin
Percentage of Total
Weighted
(%)
Contribution (RM)
RM0.57
33.74
0.19
RM0.64
33.43
0.21
RM0.76
32.83
0.25
Sandwiches
Chicken and Cheese
Sandwiches
Egg Mayo
Sandwiches
Weighted-average contribution margin
0.65
= 193.85
194 combined units of sales
- 33 -
Description
Breakeven Sales
Percentage of
Individual
Individual
(units)
Total (%)
Sales
Sales (RM)
(units)
Mackerel Sandwiches
194
33.74
65.46
78.00
65
Chicken and Cheese
194
33.43
97.50
65
Sandwiches
Egg Mayo Sandwiches
64.85
194
32.83
63.69
76.80
64
Total
194 units
RM252.30
Based on the CVP analysis, in order to break-even, We Chef Enterprise must sell 194
units of sandwiches in one month. The individual sales are 65 units, 65 units and 64 units for
of each type of sandwiches which are Mackerel Sandwiches, Chicken and Cheese
Sandwiches and Egg Mayo Sandwiches respectively. Meanwhile, the break-even sales in
price will be a total of RM252.30 which are RM78.00, RM97.50 and RM76.80 for Mackerel
Sandwiches, Egg Mayo Sandwiches and Chicken and Cheese Sandwiches respectively.
- 34 -
CONCLUSION
This business project proved to be helpful to all of us. We were able to plan and
execute a business in detail even our business is small and did not get a lot of profit. From the
report, we have learnt a lot about the process of starting up a business. We gained a lot of
experience how to handle the business as well as the operation and what a business has to
undergo to become successful by conducting this report. In addition, we have also learnt
about the risk we have to face and how to overcome the risks. Through perseverance and hard
work, we were successful to achieve our budget. This project also helps to enhance our
entrepreneurship skills. In the near future, we are looking forward to continue our business
venture, Insha Allah.
- 35 -
APPENDIX
- 36 -