5.

Critical Risk Factors and Solving Problems

Problem 1 Weather is our main concern. Since we cannot predict weather, therefore there will be huge possibilities that the rain will pour down and it will affect our business. Since the selling site that we got has not been provided by any roof and wall less, therefore our products might not be sellable in case the weather is not so good. In addition, weather also can affect our products quality. In case if the products get so sensitive with the changes in weather, we might face a loss in the future. Solution The way to solve this matter is to prepare a big umbrella for our stall. We also have to provide a safe box to keep our products so that it would not get to be exposed to the hot sunlight or the rain.

Problem 2 There is no electricity provided by the organizer of the event. One of our selling items is fruit pudding which will need to be put inside a cold place all the time. Therefore, we need the electricity as the power source to make the supply us the energy to make our refrigerator functioning. Solution We have decided to use the ice polystyrene box use the ice cubes instead of using the refrigerator.

Problem 3 Another risk is the marketing risks. The product that we want to sell is fruit pudding and fruit candy or also categorized as dessert. As our operational module is to sell door by door, and most of the sellers are non-Muslim, there are probabilities that some of them will doubt the product. Solution One of the ways to prevent this is to convince them about the product. Besides, we would promote our products through various medium like through flyers, Internet and also through verbal communication.

Problem 4 The other risk is the operational risks. In our case, this risk probably will occur. As our operational plan is to sell it door by door, there are probabilities that the Muslim customers wont buy as they doubt the products. Solution We will do the direct selling throughout every dormitory to sell our product. We also have to choose proper time to sell such as at night, where almost students are at their dormitory. However, there are also risks in our replacement plan for the pudding door to door selling. The risk that probably will occur at our replacement plan is the pudding will lose its freshness when it is being taken out for too long. To solve it, again we use the polystyrene container to preserve the coldness and reduce the outside heat from entering the container and make the pudding freshness last for quite a longer time.

Problem 5 Selling of our products might fall out of the range of our goal that we have set. To ensure that we achieve our targeted sales, we will if necessary, change our tactics of in selling our products. Solution We will lower down the price of our products to attract more customers. For instance, a pudding originals price which is RM 3.00, if there are less customers coming to our stall at the end of the day, we would consider selling the pudding at a lower price at RM 2.90. Probably RM2.90 will be our strategic price because the numerical number 2 has an effect in making the customers to think it is much cheaper though RM3.00 and RM2.90 has no much difference.

6.0

Conclusion

Through this business proposal, we are able to gain opportunity to learn more business knowledge in a practical way by applied it in a real life as a practicum. PPIB Expo 2012 plays an important role in giving us opportunity to apply theoretical knowledge into practical. In the business proposal, every partner has a chance to earn profits and gain knowledge. Through this practicum activity, we understand about the way to manage a business, the way to forecast business financial and to fulfil customer satisfaction. Moreover, we learn to do a complete business proposal which is the first

step toward successful business. Besides that, through this activity we learn about teamwork and communication skill among the partners in order to work out our business.