MGM Final Report

CEREAL JAR COMPANY
FINAL REPORT
MGM 3180 BASIC ENTREPRENEURSHIP
MADAM SITI RAHAYU BINTI HUSSIN
NOR ASMA BINTI MAD KASIM (166609)

MUHAMMAD FADZLY BIN SALLEH (166768)
NORMADIAH BINTI MOHD NORDIN (167006)
MAISARAH BINTI ROSLAN (167550)
NAJIHAH BINTI AMAT ANAN (178205)
EXECUTIVE SUMMARY
The Cereal Jar company was founded on the 20th of September, 2015, with
founding members and fellow shareholders Nor Asma binti Mad Kasim (166609),
Muhammad Fadzly bin Salleh (166768), Normadiah binti Mohd Nordin (167006),
Maisarah binti Roslan (167550), and Najihah Binti Amat Anan (178205). Through meets
inside and outside of our lecture sessions under Madam Siti Rahayu Binti Hussin, we have
devised the vision, mission and logo for our Cereal Jar company on the grounds of
functionality of our product and appeal to our target audience.
A collection of RM50 per person was collected from each shareholder
accumulating to a RM250 total reserve for covering various costs for equipment and
material. As presented in the company name, Cereal Jar offers a familiar yet unique
experience in experiencing breakfast or snacking by using cereals and chocolate mixed
creatively in a jar for a feast for both the eyes and the palate. Costs to be covered include
including various shapes and flavors of cereal; chocolate and jars to be used in assorting
the various cereal types with chocolate. We aim to accumulate around RM80 worth of
profit.
Obstacles faced by Cereal Jar would include competition from other food service
companies in the class as well as in other classes. This competition will also be felt from
other, more familiar competitors with similar ideas such as those whom sell bubble rice
with chocolate in jars. We hope to overcome these shortcomings in competition by offering
value for money products which are significantly cheaper than the products presently
available in the market. Time restraints need also be considered as the shareholders for this
company are of multi-disciplinary backgrounds. Differences in time schedules for classes
and any involvement in programs need to be understood and tolerated between
shareholders and a sense of responsibility will need to be instilled between shareholders if
we intend to make Cereal Jar a success.
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Financial issues may also arise; lacking of funds to buy more material, especially
if there is more demand than supply. In this case, we may need to increases prices to cover
more costs or look for cheaper alternatives to be used in our product, yet, are still consistent
in quality. Recognition of the product would also need to be addressed as Cereal Jar is still
a new company, which is why we propose using popular social media sites to promote our
product; we will set up a our own Facebook and Whatsapp account to reach out to a wider
spectrum of customers.
Despite the shortcomings and obstacles we may face, the Cereal Jar Company will
trudge on and seek help from various sources such as from our lecturer and from other
companies to further understand on how to apply the knowledge of entrepreneurship into
our group. We hope to gain valuable experience from this endeavor and hopefully, further
expand Cereal Jar even after finishing the course.
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TABLE OF CONTENT
PAGE
EXECUTIVE SUMMARY i
TABLE OF CONTENT iii
LIST OF TABLES vi
LIST OF FIGURES vii
LIST OF APPENDICES viii
PART 1 BUSINESS REPORT
1.0 Company Introduction 1
2.0 Business Report 2
3.0 Vision, Mission And Logo Of Company 3
3.1 Vision 3
3.2 Mission 3
3.3 Logo 3
4.0 Business Organization Structure 4
4.1 Structural Formation 4
4.2 Share of Each Members 4
4.3 Organizational Chart 5
4.4 Task Distribution 6
4.4.1 Chief Executive Officer 6
4.4.2 Executive Secretary 7
4.4.3 Financial Manager 8
4.4.4 Marketing Manager 9
| CEREAL JAR COMPANY: FINAL REPORT| iii

4.4.5 Operating Manager 10
5.0 Operating Plan 11
5.1 Production Process 11
5.1.1 Process of Producing Product 11
5.2 Process and Venue of Production 12
5.3 Process and Venue for Selling 13
5.3.1 Production Schedule 13
5.3.2 Business Premises 13
5.2.3 Business Operation 13
5.3.4 Delivery 14
5.4 Implementation of Business Activity Table 15
6.0 Marketing Plan 16
6.1 Product and service 16
6.2 Marketing Studies 18
6.2.1 Physical Qualities 18
6.2.2 Sales Location 18
6.2.3 Sanitation 18
6.2.4 Pricing strategic 19
6.2.5 Promotion and Advertising 19
6.2.6 Sales and Distribution Strategy 20
6.2.7 Poster and Flyers 20
6.3 Target market 21
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6.4 Marketing analysis 24
6.4.1 SWOT Analysis 24
6.5 Competitors 26
6.5.1 Homescience Student 26
6.5.3 Other MGM Group 26
PART 2 FINANCIAL REPORT
7.0 Financial Plan 27
7.1 Source of Funding (Capital) 27
7.2 Expense Records 28
7.3 Sales Records 29
7.4 Financial Statement/ Cash Flow 30
7.5 Income Statement/Profit and Loss Statement 31
7.6 Balance Sheet 32
7.7 Financial Analysis 33
PART 3 PROBLEM AND LESSON LEARNED
8.0 Problems Encountered 35
8.1 Lesson Learned 37
PART 4 CONCLUSION
9.0 Conclusion 39
APPENDICES 40
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LIST OF TABLE
Table No Title Page
Table 1 List of the shareholders with the amount of the shares 4
Table 2 The Gantt Charts for Implementation of Business Activity 15
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LIST OF FIGURE
Figure No Title Page
Figure 1 Chart of Target Customer 22
Figure 2 Chart of Target Customer Based on Gender 23
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LIST OF APPENDICES
Appendices Title Page
A Planning Agenda 40
B Logo Design 41
C Process preparation cereal in a jar 42
D Promotion 43
E Poster 45
F Entrepreneurship Day Carnival at Faculty Economy 46
| CEREAL JAR COMPANY: FINAL REPORT| viii

1.0 Company Introduction
Based on the popular foods eaten during breakfast, Cereal Jar incorporates the use
of a myriad of cereal flavours and shapes to not only attract the eyes of potential customers,
but also to fulfill the palates of demanding customers. As more and more food based
companies mushroom across the nation, we intend to trudge on a different path, uniquely
different from food products offered by other companies but sticking to well-known and
familiar methods used by more established food sellers. At Cereal Jar, we combine
different sorts of cereals with different but delicious tastes and shapes, together with
chocolate to give consumers memorable pleasure. All of this, we pack in elegant, yet,
simple glass jars to present a refined eating experience.
Profit will not be our main aim from Cereal Jar, from now or ever. Instead, we aim
to introduce our product at competitive prices not only to gain the upper hand against the
competition, but also to give our potential customers a lighter heart when spending their
hard-earned cash in our product. We hope to instill a spirit of love and passion in our
customers towards Cereal Jar, as much as we have our love and passion for the company
itself. By instilling such a spirit in our customers, we are confident that they would trust us
with the ingredients and materials we use to produce high-quality products at a reasonable
price.
Especially in our infant stages, our profit margin will not be high to first develop
that love and passion in our potential customers into our company. We first need to
establish a loyal and hopeful customer base, not only to have a steady stream of customers
in buying our products but also to have an external pressure on our company to produce
great products that they can look forward to. From this, not only will Cereal Jar face an
internal pressure of producing profit from product, but also to uphold an external pressure
where we need to come up with something our fans would love to have in place of their
well-earned money. Empowerment of customers should be the priority of any company.
| CEREAL JAR COMPANY: FINAL REPORT| 1

2.0 Business Report
The Cereal Jar was a new company that had been established for the MGM 3180
course, founded on the 20th of September, 2014.Cereal Jar Company sold a healthy snack
for all ages (children, teenagers, and adult), combining different sorts of cereals with an
assortment of delicious tastes and shapes, together with delectable chocolate to give
consumers memorable pleasure. All of this, we packed in elegant, yet, simple glass jars to
present a refined eating experience.
The purpose of selling our product was to allow our customers to enjoy the taste of
the cereal jars and eat it not only for breakfast but as a snack in an easy way, to be consumed
anytime and anywhere. Other than that, Cereal Jar is a healthy food item because it can
supply carbohydrates, protein, and vitamins to our bodies. Customer also can taste a
different cereal in a jar because we put four different cereals in jar.
This final report will explain how Cereal Jar Company had built, managed, and
established from administration, operation, marketing and finance sectors. For
administration, it shows the position and function of each member. By having this, each of
our members will be carrying out their work based on their positions and making it easier
to manage the Cereal Jar Company. This final report will also explain on how the company
identified and managed to solve problems throughout the business activity. Other than that,
this final report will explain on how Cereal Jar Company was established until delivery of
the product. While in the financial planning, the financial executive would explain the total
of project implementation cost, sources of fund to the financial business, cash flow, profit
and loss and balance sheets projection. So, that it can give an overview to further expand
Cereal Jar Company even after finishing the course.
Last but not least, credits and appreciations was dedicated to Cereal Jar‟s lecturer,
Madam Siti Rahayu Binti Hussin in order to lead us to establish this great company and
give a very useful references and information to create an effective business plan,
managing the company efficiently, processing of our product to be sold to customers and
also as our guidance to complete this final report.

3.0 Vision, Mission and Logo of Company
3.1 Vision
 
To be the brand that customers love.
3.2 Mission


To come up with value-for-money food products that consumers will be
 confident in purchasing.

 
To instill a culture of hope from consumers in demanding for new and
refined products under Cereal Jar.
 
To make reasonable profit from sales.
3.3 Logo

The initials “CJ” are used to create brand
awareness regarding our company name, “Cereal
Jar”. Short and simple, customers can
comfortably spread the word about Cereal Jar

 with its initials.

To create a comfortable feeling inside our
customers, we use a mild orange colour. At the
same time, the brightness of the orange colour will
attract their attention as well as have a better

 appetite to having a jar of cereal.


 yet, simple circles, to present to our customers
A stylish jar inside the attractive,
that we are, indeed, Cereal Jar.
 
 The words “Cereal in a Jar” as our catchy catch-phrase.

“Eat different”, to present to our customers that they will be having a unique 
experience when with Cereal Jar, unlike any other foods they have ever taken

4.0 Business Organization Structure
4.1 Structural Formation
Cereal Jar was a new company that had been established for the subject purpose
MGM 3180. This company was established on 20th of September, 2014. This company
sold basically a healthy snack for all stage of ages (children, teenagers, and adult). As
presented in the company name, Cereal Jar offers a familiar yet unique experience in
experiencing breakfast or snacking by using cereals and chocolate mixed creatively in a jar
for a feast for both the eyes and the palate.
The Cereal Jar Company was founded by five members and fellow shareholders
which are Nor Asma binti Mad Kasim, Muhammad Fadzly bin Salleh, Normadiah binti
Mohd Nordin, Maisarah binti Roslan and Najihah binti Amat Anan. Each of members plays
an important rule and takes responsibilities to ensure the sustainability of Cereal Jar
Company toward success.
4.2 Share of Each Members
NAME AMOUNT SHARE

Nor Asma binti Mad Kasim RM50
Muhammad Fadzly bin Salleh RM50
Normadiah binti Mohd Nordin RM50
Maisarah binti Roslan RM50
Najihah Binti Amat Anan RM50
Total RM 250
Table 1: List of the shareholders with the amount of the shares

4.3 Organizational Chart
CHIEF EXECUTIVE OFFICER
Muhammad Fadzly Bin Salleh
EXECUTIVE SECRETARY FINANCIAL MANAGER
Normadiah Bt Mohd Nordin Maisarah Bt Roslan
CHIEF MARKETING OPERATING MANAGER

MANAGER
Nor Asma Bt Mad Kasim
Najihah Bt Amat Anan

4.4 Task Distribution
4.4.1 Chief Executive Officer
Name Muhammad Fadzly bin Salleh
Age 21 years old
Education Bachelor of Science (Hons) in Cell and Molecular Biology

Duties Leading other members during conducting the business.

Create goals and missions for the project.

Set efficient strategies for the business project.

Coordinate overall business operations.

Advise and monitor the board members.

Ensuring business presented in strong and positive image.

Skill Good planning skills.

Leadership skill.

Strategic thinking.

Good management and administrative skills.

4.4.2 Executive Secretary
Name Normadiah Binti Mohd Nordin
Age 23 years old
Education Bachelor of Science in Human Development and Information

Technology

Duties Assist in the planning of meetings and taking minutes.

Prepare business proposal.

Apply for place to set up and operate the business.

Ensure all information is effectively recorded down and
shared.

Assist in completion of various forms involved in the
business.

Finalise order list.

Skill Multi-tasking person.

Management skill.

Able to work in fast pace environment.

Strong interpersonal skills.

4.4.3 Financial Manager
Name Maisarah Bt Roslan
Age 21 years old
Education Bachelor of Science (Hons) Major in Biology

Duties Anticipate and handle the issues of financial management.

Control and monitor cash flow throughout business.

Prepare budget, account and financial report.

Carry out business modelling and risk assessment.

Collect modal from board members.

Money keeper during business time.

Managing and forecasting cash.

Skill Good management skill.

Good in problem-solving, analytical, IT and calculation.

Critical thinking.

Trustworthy person.

4.4.4 Marketing Manager
Name Najihah Bt Amat Anan
Age 20 years old
Education Bachelor of Education ( Hons ) in Homesciene

Duties Research on current and potential customers.

Develop marketing strategies and plans.

Taking feedback from customer by various methods.

Use Facebook for marketing purpose.

Responsible to hit the sales target for an organization.

Create various ideas for publicity purposes.

Skill Good communication skill.

Good planning in marketing.

Advanced computer skill.

Creative.

4.4.5 Operating Manager
Name Nor Asma bt Mad Kasim
Age 21 years old
Education Bachelor of Science ( Hons ) in Microbiology

Duties Lead and mange production team for optimisation of resources
and maximum productivity

Plan and organise production activities in order to achieve
organisation‟s mission

Monitor the production process and adjust schedules for the
business.

Sets the quality standard of the product

Ensuring efficiency in operating the business by lower the cost
for product and minimise the time for production.

Responsible for supplies needed for the business operation.

Skill Good planning skill.

Multi-tasking person.

Good decision maker.

5.0 Operating Plan
5.1 Production Process
To maintain our product quality and taste, the cereal are sold and made by the
company members themselves. This is to ensure every batch of cereal jars are of the highest
quality with cleanliness ensured. Customers will then be satisfied when purchasing our
product. We all know that customers are important in business and it is our priority to fulfill
our customer‟s demands. Other than that, we will also keep on improving the quality of
our product that we made and sell based on customer feedback.
5.1.1 Process of Producing Product
Input (Ingredients) Input (Tools)

• Variety Cereal • Jar
• Chocolate • Ribbon
• Spoon
Process: Output
• All jars was cleaned properly • After finish, jars were closed
before raw materials were tightly, then ribbon was
added nicely tied around jar
• After that, Nestle Milo cereal • Lastly, spoon was placed
was put inside the jar for about at neck of jar.
three table spoonful.
• Then followed by bubble rice
• Next, melted chocolate was
added on top of bubble rice
• Another cereal which is Nestle
honeystar.

5.2 Process and Venue of Production
The main ingredient for our product cereal in a jar is cereal and chocolate. We found
another famous products same with us product is Choco Rice. However, to ensure our
products different with the products available in the market, we do not use only bubbles
rice and chocolate as a main ingredient but we use variety cereal with high quality and
delicious chocolate. This is to ensure our customers get the healthy food and can maintain
a good eating habit. As we know, cereal is a healthy food because it can supply
carbohydrates, protein, and vitamins to our bodies. Customer also can taste a different
cereal in a jar because with put four different cereal in a jar.
We do some research to find a wholesaler that can offer cereal, chocolate, ribbon,
spoon and jar at affordable prices. We found the price of the ingredients and tools for our
product almost same for every outlet. To ensure our customer get the highest satisfaction,
we finally only use famous cereal in the market to make sure our customer confident to
buy our product such as Nestle Honeystar, Nestle Milo, Cookie Crisp, and Kellog Choco
Chex.
Next our chocolate, the price of chocolate varies according to different outlet. We
had surveyed our price at Yummies Bakery, Giant, Speedmart and HERO Mart. For
conclusion, our ingredient bought from Yummies bakery for chocolate, cereal from Giant
and spoons from HERO Mart. Since the price is cheapest and the distance is the nearest.
We could save a lot in aspect of cost and transport fees.

5.3 Process and Venue for Selling
5.3.1 Production schedule
The process of our product was making in one day which is weekend. So, all of group
members can contribute on the making process. Usually, were produced our product at 8
pm until 11p.m. We were produced our product based on how much orders on that week.
5.3.2 Business Premises
We will have no official premise for stationary sales as this would only incur additional
costs from rent and equipment needed to set up desks and other equipment needed.
However, we will use the Serumpun Cafe to have our meetings and gatherings to conduct
our work, and also college rooms in Serumpun.
5.3.3 Business Operation
Cereal Jar operation focuses primarily on a cash-on-delivery system, communicating

directly with our customers. This is to gain customer traffic from these approaches as our
target demographic area the students and staff of University Putra Malaysia. Customers
can contact Cereal Jar for any inquiries and to make orders through our phone numbers.
Once their order has been made, we will deliver the items to them.

5.3.4 Delivery
The procedure of delivering our product was involved all of group members which
from different colleges (KTP, KMR, K6 and Serumpun). This is because, majority of our
customers are families and friends. We were delivered our product straight away to the
customer‟s hostel after finished it especially customers from UPM. This is because we
want to make sure our customers satisfied with quality of our product. Other than that, we
used that kind of strategy because to make sure that cereals in jar not soggy when it reach
to our customers. Our product was made week by week and only produced on weekend.
We take orders from our customers on weekdays, and start to buy raw materials and
produce our product based on their orders. If we cannot give to them on weekend, we were
giving to them during classes. Our customers not only UPM students but from other place,
so we manage to post our product to them through Post Office to make sure our product
safely arrived to them.

5.4 Implementation of Business Activity Table
WEEK WEEK 1 WEEK 2 WEEK 3 WEEK 4
DATE 1 2 8 9 15 16 22 23 26
NOV NOV NOV NOV NOV NOV NOV NOV NOV

EVENT
2014 2014 2014 2014 2014 2014 2014 2014 2014
PROMOTION
PURCHASE OF
GOODS
PRODUCTION
PROCESS
STARTING
BUSINESS
RUNNING
BUSINESS
PRODUCT
IMPROVEMENT
POST MORTEM
COMPLETING
BUSINESS
Table 2: The Gantt Charts for Implementation of Business Activity

6.0 Marketing Plan
6.1 Product and Service
Cereal Jar is our product that will fulfill customers needs. Besides give
multinutrients to our body, it will also be mixed with other flavours and textures from the
different cereal types with the delicious chocolate layers. Other than that, cereal jar can
also be gifted as presents to loved ones and friends. This cereal jar is decorated by us with
colourful ribbons and a spoon to complement the beauty of the glass jar. It is a safe and
healthy food because these cereals are put inside an air tight jar, so these cereals do not
become soggy. We are selling our cereal jar directly to our customers by pre-order through
Facebook and flyers. Once the order has been put in, we will work together to prepare the
cereal jars.
As we know, people, especially students and workers, always skip their meals
because they are busy with their daily work. So, we find an alternative to solve their
problems by introducing our product which is cereal jar. This product is good because it
can be taken anytime and anywhere. They can eat our cereal jar before start the class..
Normally, people have cereal only in the morning, but with cereal jar they can have cereal
any time they want. These scrumptious cereals with delicious chocolate layers will be
packaged in small, air tight jars and can be carried everywhere especially at workplaces.
Our product is the best and quality product for customer especially UPM student and
include quality ingredients:
 
 Nestle Honey star
 
 Nestle Milo
 
 Bubble rice
 
 Cornflakes
 
 Cookie Crisp
 
 Kellogs Choco Chex
 
Delicious Chocolate

During the selling period, there are many competitors from many aspects which is
selling the same product with our company. Thus, we make a good service for our customer
and make a good relationship with them to convince customers buy from us. Firstly, we
plan to delivery service our product for customers. This includes delivering the product to
the customers „door step‟ and we tried to satisfy customer requirements, such as giving a
lot of choice of cereal to our customer.

6.2 Marketing Strategies
6.2.1 Physical Qualities
Our product based on cereal and chocolate. The Cereal Jar only uses quality of cereal. We
combine different sorts of cereals with different but delicious tastes and shapes, together
with chocolate to give consumers memorable pleasure. All of this, we pack in elegant, yet,
simple glass jars to present a refined eating experience. Our selling products all are
handmade. We guaranty the product are good quality, safe and healthy.
6.2.2 Sales Location
Our group member comes from different college. So we decide make a direct selling at
each college like KTP, K6, KMR and K14. We start our direct selling on 30 October 2014.
We sold door to door. We also involve ourselves in Entrepreneurship Day Carnival held
by the Faculty of Economy on 25 November 2014. In the carnival day, we realized that
they were people sell the same product with our product. This is more convenient as many
people in faculty economic will pass by there and take a try on our booth. Besides by direct
selling, we also make pre-order for customers who want a different type of cereal. In this
way, we were able to get more potential customers that might buy our products.
6.2.3 Sanitation
To ensure our products sanitation, each of us who are responsible to prepare the food has
to wear plastic gloves. This act can let customer eliminate their doubt with the hygiene of
food. When we sell our product at carnival an entrepreneur at faculty economy, we provide
a tester for customer. For that, we provide one spoon only for first taste then we throw
away the plastic spoon.

6.2.4 Pricing Strategic
Pricing is another an important element in a marketing strategy. Customer usually will look
at the price when they decide whether to buy the product. If the price of products is too
expensive, we might lost many customer because our targets customers is student. We
decide to put the reasonable price because our target especially student, lecturer and staff
in UPM.
6.2.5 Promotion and Advertising
The main way of promoting and exposing our business is via promotion among friends of
our group members. First of all, we would spread the words among our friends that we are
selling cereal jar as breakfast or snack. We have advertised our product through Facebook.
We only use group member personal account Facebook to promote our product to our
friends. We post every update about our product there. We also provide preorder delivery
service. Facebook is powerful media in promoting and it will help in our business a lot. We
always keep update about our product to let people knew about our company also our
products. We also update if we open for preorder and direct selling. We uploaded photos
and let customer to order by via Whatsapp or message. We tagged the photo of the cereal
jar for all the colleges‟ students and share it on the profile to let more people know about
our company. It is an important tool as Facebook has become a new trend to interact with
others. It‟s free, direct, fast, and convenient way to attract more customers. We also often
get feedback from customers through Facebook.

6.2.6 Sales and Distribution Strategy
We will arrange the schedule that arrange the time of duty for each group members. Besides
that, our group members also decide take some early order from the customer. We make
lists everyday to make our job easier. Our company has systematic system when take an
order from customer. We will open order one week then closed order for fulfill the order.
We increased the sale through communication with the customers, know what they want
and offer what they want.
6.2.7 Poster and Flyers
In addition, we design and distribute flyers to our group members college such as KTP,
KMR K14 and K6. We highlight “EAT DIFFERENT” to attract more customers. We also
pasted the flyers on the notice board in each floor of the blocks. We mentioned our
ingredients, telephone number and insert some pictures to let them have a picture of what
we‟re selling. Besides, we also design the poster of our product in colorful way to catch
the eyes of customers. Once people are attracted to approach our product, then our group
members will be able to introduce our products and persuade the potential customers to
buy.

6.3 Target market
Our main customers are UPM students and staff. Other than that, we are using
social media to sell our product to people who are staying outside UPM and who are busy
with their work. They can order our product and we will send directly by hand by having
a meeting with them at nearby places in UPM.
Our product is cheap and affordable, suitable for students who want to taste cereals
with chocolate. We also decorate this product as a present to attract our customers. Then,
we use marketing strategy like test market which we give free samples to our customers
and use their opinion to improve our product. Lastly, we are also create our bonding with
customers such as they can give any feedback whether positive or negative feedback about
our product, so we can always improve the quality of our

Estimated target customer:
Target customer
Student Lecturer Staff
Chart 1: Chart of Target Customer

Gender
Female Male
Chart 2: Chart of Target Customer Based on Gender
6.4 Marketing analysis

6.4.1 SWOT Analysis
We conducted a SWOT analysis, by which evaluates the company‟s overall strengths (S),
weaknesses (W), opportunities (O), and threats (T). Strengths include internal capabilities,
resources, and positive situational factors that may help our company to serve the
customers. Weaknesses include our internal limitations and negative situational factors that
may interfere with our company‟s performance. Opportunities are favorable factors or
trends in the external environment that our company may be able to exploit advantages.
Threats are unfavorable external factors or trends that may present challenges to
performance. The following are the SWOT analysis of our company:
Strengths Weaknesses

Variety type of cereal

Customers had many choices of Lack of personal transport
cereals. Only 1 member had transport, not
Good promotion sufficient.
Everyone in the group promote to
customer very well

Original and unique idea
No one in the market has ever made
cereals in a jar with chocolate.
Opportunities Threats

 Convenience Many competitors
Staying in the university colleges Sell the same product like us.
allows for easier reach to potential
customers.

Long term market opportunity
Our product is health-related food
and can get with affordable price.

After evaluation of SWOT analysis, we should clear with the strength, weaknesses,
opportunities, and threats of company. Enhance the strength, improve the weaknesses,
take the opportunities, and be careful of threats of the company.
Strategies to overcome with the weaknesses and threats of company:
Weaknesses/ Threats Strategy


Lack of personal transport Find suitable time for person able to
drive to obtain all materials and settle
as many errands as possible in one trip.
This will save not only on manpower
needed to bring vehicles but also saves
on time and petrol.

Many competitors Differentiate our product from
competitors in the aspect of quality of
food and services to create superior
customer value. We need to be more
pro-active in marketing and gaining a
following in customers. We need to
ensure that when customers buy from
Cereal Jar, it would not be the last time
and would want to purchase goods
from us again.

6.5 Competitors
6.5.1 Homescience Student
We encountered our competitors is mostly form Homesciene student. This is because

they also learn about this recipe. There are from second or third year who sell bubble rice
similar with our product. They start selling the similar product with our company at
Kompleks Akademik A which is already monopolized since the past year. .
6.5.2 Other MGM Group
Other MGM group was selling the same product with us. We were competing same size of
jar and prices. But, their cereal was only consisting of bubble rice and melted chocolate not
as Cereal Jar that consists of variety types of high quality cereals. It make our product is
better than them.

7.0 Financial Plan
7.1 Source of Funding (Capital)
Being a partnership, each partner had contributed an equal amount of RM50. Thus a
total owners‟ capital is calculated as below:
Owners‟ capital = RM50 x 5 = RM 250
Price per unit of large Cereal Jar = RM 5.00
Price per unit of small Cereal Jar = RM3.00
7.2 Expense Records

Expenditure record for overall cost of production including fix cost and
variable cost.
Subjects Quantity Cost/Unit Total Variable Fix Cash Non-cash

(RM) Cost Cost Cost expenses expenses
(RM)
Large jar 21 boxes 16.80 352.80  
Small jar 2 boxes 26.00 52  
Spoon 8 packs 1.60 12.80  
Ribbon 5 coils 6.00 30.00  
Chocolate 8kg 17.5 140.00  
Bubble 3 packs 7.90 23.7  
rice
Mini 3 packs 7.90 23.7  
bubble
rice
Nestle 5 packs 10.89 54.45  
Honeystar
Nestle 5 packs 10.89 54.45  
Milo
Kellogg’s 1 pack 9.99 9.99  
Cheerios
Kellogg’s 1 pack 9.99 9.99  
Cookie
Crisp
Kellogg’s 1 pack 9.99 9.99  
Choco
Chex
Kellogg’s 1 pack 9.99 9.99  
Honey
Flakes
Plastic 6 units 5.00 30.00  
container
Car 20.00 20.00  
petrol
Total 833.86 803.86 30 833.86
7.3 Sales Records

Week 1 (RM) Week 2 (RM)

Large 31 units x 155.00 38 units x RM5 190.00
Cereal RM5
Jar
Small - - - -
Cereal
Jar
Total 155.00 190.00
Sales
Week 3 (RM) Week 4 (RM)

Large 75 units x 375.00 108 units x RM5 540.00
Cereal RM5
Jar
Small - - 48 units x RM3 144.00
Cereal
Jar
Total 375.00 684.00
Sales
Week 1 Week 2 Week 3 Week 4 Total

(RM) (RM) (RM) (RM) (RM)
Total 155.00 190.00 375.00 684.00 1404.00
sales per
week
7.4 Financial Statement/Cash flow

Cash Flow Statement For The Month Ended 30 November 2014
RM
Cash on Hand (capital) 250.00
(+) Cash Flow In

Cash Sales 1404.00
Net Cash Flow In 1654.00
(-) Cash Flow Out

Cash Expenses 833.86
Balance 820.14

7.5 Income Statement/Profit and loss statement
Profit and Loss Statement For The Month Ended 30 November 2014
RM RM
Sales
Large Cereal Jar 1260.00
Small Cereal Jar 144.00 1404.00
(-) Production Costs
813.86
Gross Profit 590.14
(-) Operation Expenses
Car petrol 20.00 20.00

Net Profit 570.14

7.6 Balance Sheet
Balance Sheet Statement For The Month Started 1 November 2014.
RM RM
Fix Assets - Equities
Capital 250.00
Variable
Assets 250.00 Liabilities -
Cash
250.00 250.00
Balance Sheet Statement For The Month Ended 30 November 2014
RM RM
Fix Assets - Equities
Capital 250.00
Variable Net Profit 570.14
Assets 527.48
Cash Liabilities -
820.14 820.14

7.7 Financial analysis
Net Profit Margin = Net Profit x 100
Sales
= RM570.14 x 100
RM1404.00
= 40.61%
Break Even Point of Large Cereal Jar
= Total Fix Cost
(Price of Sales – Variable Cost) per unit
= RM30
RM 5.00 – RM 3.00
= 15 units

Break Even Point of Small Cereal Jar
= Total Fix Cost
(Price of Sales – Variable Cost) per unit
= RM30
RM 3.00 – RM 1.70
= 23 units
Return of Investment
= Net Profit x 100%
Capital
= RM570.14 x100%
RM 250
= 228.06 %

8.0 Problems Encountered

As fresh entrepreneurs, we did not have any business experience as we start a
business from zero. We did not have the right marketing strategy and the right
planning or guideline to position our product in UPM market. So, we promote our
product using media social such as Facebook and direct selling to get attention from
customer to buy our product and to inform them that our product now available at

 UPM.


We faced the problem of communication among group members. We are from
different college which is Serumpun, KPZ, KTP and K6. It is difficult for us to meet
up and discuss how the business‟s progress. As, we know technology is convenient
and useful nowadays, so we discussed our business through Whatsapp and Facebook
in our group "Cereal Jar”. Actually, this is a good application for our group members
to ask and share anything what they want to share to each other about our business.

We updated business‟s progress there and every member able to receive the message.



We also faced problem in time management. During do a meeting for the products
preparation, some of our members cannot come because of other commitment such
as join a competition, have replacement class, college activity and some of us came
late due to transportation problems. Therefore, the time requirement to complete the
whole process of making cereal jar was take longer time due to the lack of workers.
What we do is we only make the cereal jar when everybody had free time. So, it is

affair to each member.


We faced is the inadequate supply of large jar from the store. As a result, this lead to
the lower profit gained because we had to substitute about 48 small jars and small
jars give less profit which is approximately RM1.30 per jar. If we are able to sell all
large jars than we will get higher profit or income since each large jar gives us about
RM2 of profit. We learned that we need to find more than one reliable supplier to run
our business. This is to ensure the smooth business activity and to ensure that the

profit can be maximized as possible.

8.1 Lesson Learned
 
 Planning a business
During taking this subject, we have learned how to plan a business. We have defined
our business, for example, we will clarify what product we want to sell, who our
customer, how to be different product, what is our price that should we put to our
product and what is our primary competitive advantage. A good start of business
always comes with a nice plan. If we have a better plan, we can prevent ourselves
from doing mistake that cause any undesired deficit or unwanted wastage in
materials. A good plan includes a well organized functioning group and a group of
productive workers.

 
 Financial report for a business
We learned that it is very important to have a financial report for a business because
from that report we will be able to estimate the future state of our business and to find
chance for business expansion or growth. Financial report also vital in order to ensure
that the cash inflow and outflow is happening in a way that it should be, and not
bringing any lost to the company. We can monitor the company financial state very
efficient when we have all these financial statements.

 
 Social skills
A good social skill helps in promoting our company and also helps in finding solution
for problem that encountered. Friends around us always appear for a reason, we might
not know why and how in that moment but friends will give suggestion and help if
they are capable to. For example, during Entrepreneurship Day at Faculty Economy
we do a good communication skill to ask customer buy our Cereal Jar. As a result,
on that day we sold 150 jars

 
 Problem solving
During our business, we learned make a solution when facing problems. When we
know that there are some business selling the same product with us and selling at the
same place, we have decided to change our plan that we have planned well at the
beginning. A company necessary has 'plan back-up' respectively as preparation in
case face problem.

 
 Spirit of teamwork
Teamwork is the key to success, a quality and productive team makes big different
to the others. When we have a strength spirit of teamwork, all planning for business
will run smoothly without any problem. As a team, we believed that everyone will
do their job with their best effort, therefore our job are always done, that satisfy us.

 
 Be different
We have learned how to be different. We have stand out. We have to differentiate
ourselves. When we are just getting started, the biggest thing we will be vying for is
attention. Nobody is going to pay attention to a company that‟s doing exactly the
same thing as everyone else, since we know that are some groups are selling the same
product with us, we have thought to add another product to sell to make it different
from the other groups.

9.0 Conclusion
Cereal Jar was founded through our involvement in this Basics in Entrepreneurship
(MGM3180) course, under the supervision of Madam Siti Rahayu Binti Hussin. Through
a period of a fourteen-week lecture period as well as hands-on time with the basics of
planning and carrying out the workings of a successful business company, our five persons
group has come to understand the true basics in entrepreneurship.
We have come to understand that many aspects need to be considered before

immersing ourselves in the competitive world of business. Besides considering what
products or services should be provided, we have come to an understanding that we also
need to cater to the needs and desires of the current customer profile. The customers are
the biggest assets to a company‟s success and we need to understand who they are and
what they want first before we start introducing what we want to produce.
When we understand who our customers are and what are their demands, proper
planning of how the business should be developed and executed need to be done. Matters
such as having the proper company identity example name and logo of the company,
vision, mission and money flow need to be carefully planned out so as to have the highest
efficiency in achieving our targets. Potential threats and faults can also be predicted and
overcome with meticulous planning, as well as having a clearer picture of how the company
business will be run.
Through this course, we have also learnt the importance of determination and will
to carry on with our business. We have learnt the proper attitude to be implemented to
become successful entrepreneurs and the sacrifices it takes to be one.
In the end, we believe that MGM3180 has instilled the right ideologies and
practices for us, as students of University Putra Malaysia, to take one step further in
becoming a successful entrepreneur. Or at least, to consider it.

APPENDICES A
Planning Agenda
EVENT/TIME (WEEKS) 1 2 3 4 5 6 7 8 9 10 11 12 13 14
FOUNDING OF
COMPANY
BUSINESS PLANNING
MATERIAL
GATHERING
PROMOTION
(MARKET TESTING)
SELLING
SUBMISSION OF
REPORT
PRESENTATION

APPENDICES B
Logo Design
First Sketch Second Sketch
Third Sketch Fourth Design (CJ LOGO)

APPENDICES C
Process Preparation Cereal in a Jar
Firstly, Secondly, Next, Then, Jar was Lastly,

Nestle bubble closed
melted Nestle spoon
milo rice was chocolate honeystr tightly, was
cereal added on
was cereal then placed at
was top of
added was ribbon neck of
put Nestle
into jar added was tied jar
into jar milo into jar nicely
cereal around
jar

APPENDICES D
Promotion
 
Facebook
 
Flyer

APPENDICES E
Poster

APPENDICES F
Entrepreneurship Day Carnival at Faculty Economy

Our Booth

MGM Final Report

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CEREAL JAR COMPANY

NOR ASMA BINTI MAD KASIM (166609)

| CEREAL JAR COMPANY: FINAL REPORT| i

| CEREAL JAR COMPANY: FINAL REPORT| ii

TABLE OF CONTENT iii

LIST OF FIGURES vii

LIST OF APPENDICES viii

PART 1 BUSINESS REPORT

1.0 Company Introduction 1

2.0 Business Report 2

3.0 Vision, Mission And Logo Of Company 3

4.0 Business Organization Structure 4

4.1 Structural Formation 4

4.2 Share of Each Members 4

4.3 Organizational Chart 5

4.4 Task Distribution 6

4.4.1 Chief Executive Officer 6

4.4.2 Executive Secretary 7

4.4.3 Financial Manager 8

4.4.4 Marketing Manager 9

| CEREAL JAR COMPANY: FINAL REPORT| iii

4.4.5 Operating Manager 10

5.0 Operating Plan 11

5.1 Production Process 11

5.1.1 Process of Producing Product 11

5.2 Process and Venue of Production 12

5.3 Process and Venue for Selling 13

5.3.1 Production Schedule 13

5.3.2 Business Premises 13

5.2.3 Business Operation 13

5.4 Implementation of Business Activity Table 15

6.0 Marketing Plan 16

6.1 Product and service 16

6.2 Marketing Studies 18

6.2.1 Physical Qualities 18

6.2.2 Sales Location 18

6.2.4 Pricing strategic 19

6.2.5 Promotion and Advertising 19

6.2.6 Sales and Distribution Strategy 20

6.2.7 Poster and Flyers 20

6.3 Target market 21

| CEREAL JAR COMPANY: FINAL REPORT| iv

6.4 Marketing analysis 24

6.4.1 SWOT Analysis 24

6.5.1 Homescience Student 26

6.5.3 Other MGM Group 26

PART 2 FINANCIAL REPORT

7.0 Financial Plan 27

7.1 Source of Funding (Capital) 27

7.2 Expense Records 28

7.3 Sales Records 29

7.4 Financial Statement/ Cash Flow 30

7.5 Income Statement/Profit and Loss Statement 31

7.6 Balance Sheet 32

7.7 Financial Analysis 33

PART 3 PROBLEM AND LESSON LEARNED

8.0 Problems Encountered 35

8.1 Lesson Learned 37

| CEREAL JAR COMPANY: FINAL REPORT| v

Table No Title Page

Table 1 List of the shareholders with the amount of the shares 4

Table 2 The Gantt Charts for Implementation of Business Activity 15

| CEREAL JAR COMPANY: FINAL REPORT| vi