S2. 2014 FM202 Group Assignment: Sweet Cravings Scoop Shop
Name: Kumar, Raynil ID: S11088642 Name: Tita, Teibaibure ID: S11075567 Name: Vakaloloma , Litia ID: S11096586 Name: Versoni, Grace ID: s11100093 S2. 2014
Student plagiarism cover sheet Statement of originality Course: FM202 Names:
ID Number:
Kumar, Raynil
s11088642
……………………………………………………
Tita, Teibaibure
s11075567
…………………………………………………… .
Vakaloloma, Litia
s11096586
…………………………………………………… .
Versoni, Grace
s11100093
…………………………………………………… .
We have read and understood the University of the South Pacific’s, School of Management and Public Administration policy on academic misconduct and plagiarism. We are aware of the following: The view taken by the Head of the School of Management and Public Administration is that failure to acknowledge or inadequate acknowledging the work of another will result in a student receiving an official written warning and a mark of 0 for that piece of work. If the plagiarism case is regarded by the Head of School of Management and Public Administration as substantial (for example a significant failure to acknowledge a source) it will be forwarded to the Student Development Committee of Senate (the Discipline Committee). The School of Management and Public Administration has introduced a database of those students who have been reported to the Head of School for plagiarism and the penalty that was imposed and that repeat offenders (regardless as to the extent of the plagiarism) will be automatically referred to the Discipline Committee. All members contributed equally to the completion of this assignment. We confirm that the work contained in the attached item of assessment is entirely our own work except where we have specifically acknowledged another’s work and the source of that other’s work. 1|Page
Sweet cravings scoop (ice-cream) shop is business partnership and will be owned and run by Teibaibure Tita, Litia Vakaloloma, Raynil Kumar, and Grace Versoni. The scoop shop will be located at a rented space in the busy USP cafeteria, Suva, Fiji. With a combination of debt and owners’ investments of about $8,100.00 in initial equity, the business hopes to successfully establish in the given high-traffic location. The business is anticipating to bring a wide variety of ice-cream, chilled drinks and selected pastries to the USP cafeteria where it is currently not sold. Market offerings will include a vast variety of flavors together with options for dairy and non-dairy ice-creams in different sizes. With a selective marketing strategy, the Sweet Cravings intends to create a loyal customer base through reasonable prices and additional healthy options mainly for students, lecturers, and gym attendees who are our target market. A forecast of business sales predicts a figure of $116,160.00 in the first year and rises by $17,022.20 in the second year (Refer to Appendix, Table 1B). Sales forecasted are easily achievable upon start-up according to the market research that have been performed. According to predicted sales and expenses, net income is anticipated to rise to over $150,000 in five years (Refer to Appendix, Table 2A). In addition to this, scenario analysis of the business illustrates a positive net income can be achieved if sales volume do no drop more than 14% of the forecasted figure (Refer to Appendix, Table 2B). Overall, Sweet Cravings scoop shop is a feasible and profitable project to invest in, as given discount rate, terminal value and forecasted cash-flows for 5yrs the business has a positive net present value (Refer to Appendix, Table 2)
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With the intention of getting additional advice and knowledge for starting our scoop or icecream shop, we have conducted an interview with a business owner manager operating the similar line of business to get a few ideas on how to manage our new business efficiently and effectively. The owner manager, Lady Mavis Ah Koy, who is i n her early seventy’s, operates an ice-cream shop called
‘Sa Ula Ice-cream’ located
at the Flea-market in Suva. The business is named after
her mother, referring to somewhat delightful, wonderful and attractive (Ahkoy, 2014). Although she is wealthy, she enjoys the satisfaction of running a small ice-cream business to all various age group who enjoy their ice-cream. She chose this line of business as it is easy to prepare and to serve to customers. ‘Sa Ula Ice-cream’ sells nine-teen (19) different flavors, in which the business owner buys in bulk from her both suppliers, Tuckers and Tip-top (2014). Above all, the lessons learnt from our interviewee to operate a small ice-cream business effectively, by;
Minimizing costs in the least possible ways, by always being ‘hands -on’ to watch everything being done in a fairly way. For example, she mentioned about how for every carton of ice-cream, there are certain amounts of ice-cream scope that needs to be made in order to get certain profit out of it. If the money does not add up to the number of icecream scopes, then the employee serving the ice-cream will have to pay from his/her own pocket.
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Maintaining a healthy relationship with your supplier is important by paying them on time in which may get you to receive discounts on certain items.
Maintaining consumer loyalty is another significant factor, in terms of how you communicate and interact with them when they come in to buy, through advertisement as well so that to attract them into the wide variety of different ice-cream flavors that is available.
Not be too greedy when setting prices of for ice-cream. The selling price of an ice-cream is sold at a reasonable price to target the average people. Again here the business owner manager mentions that she can serve over 100-200 customers, in which may depend on the weather or when people get paid.
In summary of lessons learnt, business is not always and only about money profits but above all else the pleasure and satisfaction that comes from doing what you love consequently satisfying the needs of people of all walks of life. For in efficiently and effectively operating a business in which one has a passion for will result in happier customers, who in turn will become loyal customer, and ultimately will mean more sales. As stated in a quote by General Electric CEO, Jack Welch, “Do what you do so well that they will want to see it again and bring their friends. (Memoriable Quotes, 2014) ." Lastly, for business to grow, it must diversify to selling other products or invests into other shops.
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References Ahkoy, M., 2014. Running an Ice-cream Shop [Interview] (12 9 2014). Anon., 2014. Memoriable Quotes. [Online] Available at: http://www.quantisoft.com/Articles/Quotes.htm Fiji Revenue and Customs Authority, 2011. Resident Tax Rates. [Online] Available at: http://www.frca.org.fj/residents-tax-rates-2001-2012/ [Accessed 1 10 2014]. Peter McInnes, 2012. Peter McInnes. [Online] Available at: http://www.petermcinnes.com.au/au/component/magebridge/vitamix-5200-brushedstainless [Accessed 10 10 2014]. USP Commercial Operations Accountant, R., 2014. Price of Rent at Cafeteria [Interview] (1 9 2014).
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