Tanyash Dubey

Lancers International school

Centre number: IN690
Candidate number:0023
Syllabus code:0454
Syllabus title: Enterprise

Task two: Planning the

project
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Purpose: to clarify what resources are required to reach the goal, formulate a timeline for when specific
tasks need to be completed and determine what resources are required.

Action Plan (impact of the problem in outcome)

Task

Time expected

3 days

Tanyash
Dubey
(myself)

2 days

Tanyash
Dubey
(Myself)

Carry out the

market research

Prepare a
presentation

2 days
Permission for
stalls

People
responsible

Tanyash
Dubey

Date expected for completion

Monitoring

Outcome

2/09/13

I was given the duty of

carrying out the
questionnaire throughout the
school. I had prepared a
register in which I was
noting down the
questionnaire given and
questionnaire received

11/08/13

Nimit was double checking

the presentation once to
check the quality of the
presentation and give his
feedback and as the need
aroused I edited my
presentation further

The market research was

successful. Therefore we
were able to identify
consumers needs and
wants both now in future.
This helped us to identify
the market gap and due to
this we were prepared for
changes in consumers
demand
There was a delay in the
preparation but later on
Teachers were impressed
with my presentation and
the results were very good.
They were impressed by
the presentation

15/08/13

Permission to be organized
before the dead line. I
reminded our head of school
every day and requested him
to hurry the process a bit.

There was a delay because the

laptop in which we prepared the
presentation picked up some
problem and hence it had gone
for repair work. However later
on A Agreement was reached
granting us the space required
and permission for stalls by hod

Produce result
for meeting

2 days

Nimit
Mahajan

21/08/13

Nimit was responsible for

keeping a track of the
meeting and he collated the
result

Deadlines were met.

Raising
appropriate
finance

15

Nimit
Mahajan

7/8/13

Our aim was to raise Rs6000

to monitor this fund raising
we decided to keep an
account which was daily
updated with the fund raised.

1 week

Tanyash
Dubey

The school preponded the

fundraiser event that left a
very little time with us,
hence we were not able to
carryout the fundraiser as
we planned to. Due to this
problem we were only able
to raise Rs 7000
A sample of 70 people was
chosen and a questionnaire
was carried out. We
decided to go with more
than 1 coffee flavor.

Researching on
different kind of
coffee

16/08/13

When deciding we need to

take a quota sample and the
sample should be large to get
more accurate result. I was
also keeping a record of the
number of questionnaire
distributed and received
back in a register.

Task
Researching on
different flavors of
cookie

Time expected

People
responsible

1 week

Tanyash
Dubey

3 days

Nimit
mahajan

Researching on
best way of
making coffee
Researching on
best way of
making cookies

3 days

Preparing
attractive posters

2 days

Date expected for completion

23/08/13

26/08/13

Tanyash
Dubey

29/08/13

Nimit
Mahajan

1/09/13

Monitoring
When deciding we need to
take a quota sample and the
sample should be large to get
more accurate result
We prepared a list listing out
all the possible way of
obtaining coffee and the
method which would yield
the best taste
We prepared a list listing out
all the possible way of
obtaining cookie and the
method, which would yield us
the best taste.

I (Tanyash) was going

through the chart thoroughly
to check the quality of this
chart. This needs to be done
by the deadline

Outcome
A sample of 70 people was
chosen and a questionnaire
was carried out. We decided
to go with chocolate
cookies.
We decided to go with a
coffee machine as this will
be hassle free and we will
be able to meet a high
demand but this will be
expensive
From the list prepared we
decided to bake cookies at
Nimits home as he had the
required equipment. This
also meant that we didnt
had to rent equipment to
bake cookies which brough
our cost of production
considerably down

The posters were not

impressive. We didnt
wanted to exceed the
deadline so we decided to go
with the already prepared
average poster

Drawing out other

forms of
advertisement

5 days

2 days
Obtaining raw
material

Nimit
mahajan

Tanyash

18/9/13

02/10/13

I was checking the quality

and progress of
advertisement to make sure
that our activity is carried
out as planned
Both of us kept checking our
stocks every hour and we
prepared a list of all the
suppliers

The advertisement were

successfully prepared on
time

We failed to obtain raw

material at the cheapest
possible cost as the results
from informal negotiation
were below our
expectations. Therefore we
had a pay a little more for
stocks than what we had
presumed

Task
Training

Set out stalls

Time expected

People
responsible

7 days

Tanyash

1 hour per
session

Tanyash
Dubey and
nimit
mahajan

A week

Tanyash
Dubey and
nimit
mahajan

Fulfill
consumers
demand by
providing them
with coffee and
cookie
Profits collected

1 day

Tanyash
Dubey and
nimit
mahajan

Tanyash

Date expected for completion

20/09/13

Monitoring
We kept on practicing what
we have learn in the training
to monitor our progress

Outcome
Our training was delayed
by one week because I had
to leave the town for some
important work

5/10/13 to 10/10/13

Nimit was making sure that

everything is where it should
be and everything is fine

The stall was not

satisfactory. It was not
decorated properly and
was not able to attract and
persuade students to buy
our product
Both of us failed to identify
the demand and we ended
up having more raw
material which reduced our
profits

5/10/13 to 10/10/13

11/10/13

A.

Both of us were making sure

that we have enough raw
materials to make sure that
the demand does not exceed
the supply.

It was the responsibility of

I did not incur any problem
both the team members to
in collecting the revenue
collects profits at the end of
generated.
each day. I had made register
in which I was monitoring
the profits. I was registering
each sale into the register to
keep a track on the revenue
A.

Executive summary

Coffee right is a business, which will fulfill the growing demand of coffee throughout the
school. We want to make our coffee a necessity to the coffee addicts and attracts people to
drink our high quality coffee .Our customer will enjoy four flavors of coffee which will be
freshly brewed coffee from the coffee machine which will use high quality coffee beans made
from state of the art technology. The aroma of our coffee will be self sufficient to attract people
to our stall. The cookies will add on to the pleasure that people will have while drinking our
coffee
Our business will be taking place in the downtown of our school. This is the place from where
most of the teachers and students pass by. A good presentation successfully secured a good spot
for our business. This itself reflect how determined both the team members were to succeed.
First few days the sales are likely to be less but we expect the sales to pick up. In the starting
we will use informative advertisement to make sure that everyone in the school have the
information about our product. From the third day we will use persuasive advertisement to
pursue people to buy our product
Our pricing strategies will be flexible. In the starting we will use competitive pricing to attract
more consumer and later on if the sales increase rapidly and we feel that the stock is finishing
up faster we will use promotional pricing.
Risk assessment
8

Risk

Comments
Likelihood of
occurrence
1-2

Severity of
outcome
9-10
When starting our activity the 1st thing that we did was ask for permission. The head of
school was happy with our activity and he agreed to an agreement granting us permission
for stall. Measures taken to reduce risk was preparing a nice presentation so that the
teachers and head of school have a clear idea about our activity and to show them that
there is demand for our product and we are serving a healthy product. If we would have
failed to get permission to open a stall in school then the activity had to be carried out in a
market place where we would have to give rent and there would have been a lot of
competition

Not getting
permission for
stall

Not able to raise

appropriate
finance

5-6

8-9

Raising appropriate finance is very important for our activity and the most difficult too. To
raise finance we prepared a cash flow forecast and a business plan to increase the chances
of getting loan from school. On the parents teacher meeting we had a fund raising event,
which also helped us to raise some fund. If we would have failed in raising fund then we
had to reduce our planned expenses somehow or take a part-time job to increase our cash
inflow.

Failed to create
attractive
posters

4-5

2-3

Preparing posters is important because it can be a source of attraction of passers-by, which

can eventually lead to an increase in sales. If more people are attracted to our stall then
there will be more people taking a look at our product this increases the number of
potential customers however if we would have failed to make attractive poster, there might
be a reduction in our sales. To reduce the risk we used more decorative material such as
glitters, brightly colored chart papers and sketch pen

Risk

Likelihood of
occurrence

Severity of
outcome

Comments

Failed to identify
the best way of
obtaining coffee

6-7

6-7

When we decided to make coffee, we knew that it is very important to identify the best way
of obtaining this coffee (readymade coffee or fresh grinded coffee). If we wouldve failed to
identify the right way of obtaining coffee for instance: if people want hot coffee then we had
to use coffee machine for obtaining coffee rather than ready made coffees available in
market. If we buy ready made coffee then the sales will decrease as people are actually
looking for hot coffee and this will reduce our sales revenue. To reduce the risk we identified
the demand with a questionnaire and then decided onto which method to be used to obtain
coffee

Failed to identify
the best flavor of
cookie to be sold

5-6

6-7

If we are successful in identifying the correct flavor (which has the most demand) then more
people will be willing to buy our cookies however if we fail in identifying the correct flavor
less people will be willing to buy our product and our sales revenue will decrease.
In order to reduce the risk we identified the demand by a questionnaire conducted on 70
people.

Advertisement
inaccurate

6-7

7-8
If advertisement prepared is inaccurate then the consumer might end up buying from other
business as wrong information will be given to consumers this is a example of ineffective
external communication. To prevent this precautions were taken: a consumer panel was set
up to check whether the advertisement is giving a clear message or not.

10

Risk

Likelihood of
occurrence

Severity of
outcome

Comments

Difficulty in
obtaining raw
material

2-3

7-8

We are obtaining raw material from a reliable supplier however if there is ineffective
external communication between us and the supplier then we might end up getting the
wrong supplies and if wrong supplies are obtained then our product process will come to a
halt. To reduce the risk we have a backup of other supplier and we have a checklist to check
the supplies regularly and check for any shortage of supply

Failed to set up the

stall on time

2-3

7-8

This is less likely to happen as help from teachers and juniors were taken, we had enough
workforce and had al ready taken the permission for the stall however failing to set up the
stall in time would mean that we will loose important business days where sales could have
be made.

11

Risk

Likelihood of
occurrence

Severity of
outcome

Comments

Power cut

3-4

8-9

Our school has 24 hours energy back up. This reduces the chances of a power cut but there
are situation where the energy back up fails and there is a power cut for which lasts for
about half n hour. In such scenario our production process would have been halted and our
revenue from sales which couldve have been made during that time wouldve decreased

Failed to set up the

stall on time

2-3

7-8

This is less likely to happen as help from teachers and juniors were taken, we had enough
workforce and had al ready taken the permission for the stall however failing to set up the
stall in time would mean that we will loose important business days where sales could have
be made.

Financial planning
Doing financial planning was one of the most important aspects of our enterprise project. Following are the points justifying why
financial planning was very important
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 Managing income: its possible to manage income more efficiently through planning. For
instance: if we are enjoying a high sales and a high profit then with planning we will be
able to utilize the profit to its optimum use.
Cash flow: Increase cash flows by carefully monitoring your spending patterns and
expenses.
Capital: financial planning allows you to consider investments to improve your overall
financial well-being.
Security: a good financial planning will enable us to get proper insurance coverage in
place which will mean there will be a sense of safety in the business
investment: A proper financial plan considers your personal circumstances, objectives and
risk tolerance
Financial Understanding: Better financial understanding can be achieved when
measurable financial goals are set, the effects of decisions understood, and results
reviewed.

13

Cash flow forecast

Purpose
When starting our activity, we will need to know how much cash will be needed for the running of our activity. It is very important to
know the cash needed to start a business and many new businesses are often unsuccessful because they fail to determine the cash
needed to start the business. A cash flow forecast will help us avoid this problem.

14

To be better prepared we had listed out measures to be taken in case of a cash flow problem:
1. Reduce any daily or planned expenses (ask for trade credit from supplier)
2. Ask for credit from suppliers and delay expenses until cash is available
3. Arrange with bank to borrow money during the period of cash flow problem
Monday

Opening bank
balance

Tuesday

Wednesday

Thursday

Friday

5000

4800

5600

6600

7100

500
500

1200
1200

1700
1700

1400
1400

500
500

500
200
700

200
200
400

500
200
700

300
200
500

500
200
700

-200

800

1000

700

300

4800

5600

6600

7100

7400

CASH
INFLOWS:
Cash sales
Total cash inflow

CASH
OUTFLOW
Raw materials
Other expenses
Total cash outflow

Net cash flow

Closing bank
balance

Sources of finance
15

Items required
in our activity

Advantage

Disadvantage

Source of finance chosen

money obtained
from fund raising
event

This will not have to be

repaid

Less money will be raised, the

money raised might not be
enough to rent a coffee machine

Owners saving

This will be available

quickly and no interest
will need to be paid

We decided to ask for loan from school to rent

a coffee machine. Asking for loans from school
to rent will mean that no interest rate will be
charged though the money will have to be
repaid. This money will be quick to arrange and
this can be for varying length of time. However
if we fail to make enough sales revenue then we
might fail to repay the loan. A collateral
security might also be asked from school

Sources of finance

Renting a
coffee machine
@Rs. 2000

Loan from school

Overdraft from
bank

No interest will be
charged and can be
quick to arrange.

Interest will only be

paid on the money
overdrawn. It is also a
flexible way of
borrowing

Savings maybe too low and it will also

increase the risk taken by the owners

This money will have to be repaid

which can reduce our profit and if not
enough profits are made we might not
be able to repay the loan. Collateral
security might be required

Interest rats are variable. The banks

can ask for the overdraft to be repaid
at very short notice

16

Items required
in our activity

Advantage

Disadvantage

Owners buying
share

Money will not have to

be repaid. Cheaper way
of raising finance

Buying share our self will raise

a small amount of finance and
this finance will have an
opportunity cost this finance
could be used for contingency
fund.

Trade credit

This will be a interest

free loan for the length
of time the payment is
delayed for

Source of finance chosen

Sources of finance

Raw materials
to produce
coffee
@2000

Issue of shares

It is a permanent source
of capital which would
not have to be repaid.no
interest will be charged

The supplier may refuse to supply

anymore goods if payment is not made
quickly

We decided to buy share in our activity.

Collectively we both bought shares worth Rs.
2000.this money will not have to be repaid this
will increase the profits made by our activity as
this is a cheaper way of borrowing. However
buying our own shares will increase the risk
taken by both of us and this finance will have a
opportunity cost

Dividends will be expected from us

this will reduce our profits. The
ownership of the company also could
change hands

17

Items required
in our activity

Advantage

Disadvantage

Source of finance chosen

Sources of finance

Fee for 2 people

cookie making
course @Rs.
400

Finance raised
from fund raising
event.

Grants from school

This does not need to be Fund raising event itself will

repaid thus increasing cost us money. A large amount
the profits
of finance will not be generated

This also do not have to

be repaid

as we are al ready taking a loan from

school, taking grant will increase the
pressure on us of being successful

As a large amount of finance is not needed we

decided to use the money collected from the
fund raising event. This money will not have to
be repaid. We were already taking a interest
free loan from school so the school might be
reluctant on giving us a grant so we decided to
go forward with the money raised in fund
raising event

Finaldecisiononthemethodoffinance
Item

Method of finance
chosen

Justification

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Renting of coffee
machine

Loan from school

Raw materials such

as coffee beans

Owners buying shares

Raw materials such

as cups and tissue

Finance raised from fund

raising event

Item

Method of finance
chosen

We knew that a large amount will be needed to buy the equipment, and it can be time
consuming to sell the equipment after our activity has ended so we decided to rent the coffee
machine instead as this would turn out to be cheaper but still the funds collected from our
fundraising event were not enough. We also thought of buying shares in our own business
but because of fewer members in the group we could not collect the required finance i.e.
2000. We decided to request to the school for the loan for the equipment. We provided them
with our cash flow forecast and business plan to strengthen our position for getting the loan.
The school was confident and decided to give us the loan. This was the best option as the
loan from school was
Both of us agreed to buy shares in our own business to finance the raw material required
for production. We both agreed to contribute 1000 each. This meant we had 2000 in total,
which is enough to finance the raw material required to make coffee. This finance will not
have to be repaid, as this will be a permanent capital. This would reduce our cost of
production which could result in a increase in profit

In our fund raising event we were able to raise around 1000 (1000 short of what we had
expected). The money required for raw materials such as cups, tissue and paper plates were
600. This meant that we had 400 to spare. This money will be used for training. The money
obtained from fund raising event will not have to be repaid thus this will reduce our cost of
production. We thought of asking for grants from school but as we were already taking a
interest free loan from school we decided to use the money obtained from fund raising event

Justification

19

Advertisement of
our product

Training

Trade credit

We decided to design an advertisement and take a print out from the school-printing
department and paste it all over the school to spread awareness about our product. The
school-printing department allowed us to give us a trade credit. The total cost of producing
the adverts was 500 out of which 300 were given to us as trade credit, which needs to be
paid1 week after our activity. We would pay this 300 from the profits that we have earned
after the activity. No interest will be charged on the trade credit

Finance obtained from fund

raising event

A total of 1000rs were obtained from fund raising event out of which 600 were spent on
getting some raw material. We used the spare 400rs for the training of how to make cookies.
This money didnt have to be repaid. This will result in a decrease in cost of production,
which will increase our profits.

From the finance raised our main objectives were to:

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 Make a brand image in the school and gain customer loyalty

Not just break even but make a profit
Carry out this business activity in a ethical manner
In order to do this:
Both the team members should be highly motivate to succeed (to be
productive)
Bothe the team members work toward best of our ability
Hard work
The reason we think we will be successful are:
From day one of our enterprise activity we knew that it would take up a
lot of hard work and determination if we want to succeed. Both the
team members are highly motivated to work as hard as possible and as
efficient as possible to make sure that our first business activity does
not fail. We were also able to identify the right product and a market
gap. We dont have any direct competitors and the weather conditions
are also favoring our product (in winters the demand for hot coffee
increases significantly). The results of the questionnaires also reflected
that our business activity is likely to be successful

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