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SWEET O’ CAKES 1.0 COMPANY’S BACKGROUND 1.1 ORIGIN OF SWEET O’ CAKES SWEET O’ CAKES were inspired by from the members in our business. SWEET O’ CAKES is a partnership company includes five members who come from different state and race. Our company is running foods which are different type of cakes. Our company is located in Labuan town area which is a strategic place to sell our products. The business will starts at 9.00 a.m. until 10.00 p.m. daily. Our company is selling variety of homemade baking cakes include cupcakes as our main product with another additional choice of cakes such as Sarawak Layer Cake and Caramel Cake. 1.2 LOGO AND TRADEMARK 1

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Page 1: Business Communication

SWEET O’ CAKES

1.0 COMPANY’S BACKGROUND

1.1 ORIGIN OF SWEET O’ CAKES

SWEET O’ CAKES were inspired by from the members in our business. SWEET O’

CAKES is a partnership company includes five members who come from different state

and race. Our company is running foods which are different type of cakes. Our company

is located in Labuan town area which is a strategic place to sell our products. The

business will starts at 9.00 a.m. until 10.00 p.m. daily. Our company is selling variety of

homemade baking cakes include cupcakes as our main product with another additional

choice of cakes such as Sarawak Layer Cake and Caramel Cake.

1.2 LOGO AND TRADEMARK

Our logo is a variety of cupcakes that includes our company name which is easy to define

our company business is mainly selling cupcakes. A smile cupcake represents the feeling

of sweet, happy and satisfies of the customers after taste our cakes. They also satisfy with

the services that provided by our company. Our trademark slogan is “Sweet for the Sweet

Ones”. The slogan means that our foods make our customer feeling sweet and happy after

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them having any kind of cakes in our shop. Our company provides sweet and delicious

foods that suitable for everyone in this world.

1.3 VISION AND MISSION

VISION:

Our company vision is to ride on the success of SWEET O’ CAKES products and

engrave a good brand impression in the hearts of Labuan population. We strive to adhere

to strict self regulation and control on the food and service standards and quality that we

provide to customers.

MISSION:

At SWEET O’ CAKES, we believe that our accomplishment is driven by our philosophy

of practicing quality and high standard is the most important brand value for our

products. We strive to provide the best satisfaction to our valued customers.

1.4 PRODUCTS DESCRIPTION

SWEET O’ CAKES is a foods business that selling homemade cupcakes as a main

products. Besides that, our company sells variety of cakes which are Sarawak Layer Cake

and Caramel Cake. Our main product which is cupcakes is available in many flavours

such as chocolate, vanilla, and butter with colourful and attractive topping. Our customer

also can choose the cupcakes without the toppings. Other than that, our customer can

choose the variety of Sarawak Layer Cake which is made by our company member that

came from Sarawak. This is original traditional Sarawak layered cakes, with beautiful

fusion of colours and wonderful shapes, tasteful aroma, firm and balance textures. It is a

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complete baking which can be kept safely in fridge for 4 months or more. All of these

combinations bring it to the best standard and high quality cake. Besides that, our

company also sells Caramel Cake which taste sweets and delicious. Our list price for our

cakes is shown in Table 1 below.

PRODUCTS 1 unit(RM)

Cupcake (without topping) 2.50

Cupcake (with topping) 3.00

Caramel Cake (slice) 3.50

Sarawak Layer Cake (slice) 5.00

Sarawak Layer Cake (8” x 8” x 3”) 80.00

1.5 OWNERSHIP

SWEET O’ CAKES is a company that owned by five members that came from different

states and races. It is a partnership business with the capital modal of RM200, 000. Each

of the members in our company will invest RM40, 000 to our business.

1.6 MANAGEMENT TEAM

Our company have form an organizational structure to make our business well organize

and good organization. Our organizations includes Chief Executive Officer (CEO), Chief

Marketing Officer (CMO), Chief Financial Officer (CFO), Chief Operation Officer

(COO), and Chief Technical Officer (CTO). Chart below shows our company

organization structure.

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Table 1: Price for our products

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SWEET O’ CAKE ORGANIZATIONAL STRUCTURE

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CMOErica Bubum

CFOStella Eva

COOEvenny Sikin

CFODayang Rafezah

CEOBellinda Kane

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Bellinda Kane is the CEO of the SWEET O’ CAKES company which is the highest

ranking in the organizational structure. She will be in charge in total management of an

organization. She has responsibilities as a communicator, decision maker, leader, and the

manager. The communicator role can involve the press and the rest of the outside world,

as well as the organization's management and employees; the decision-making role

involves high-level decisions about policy and strategy. As a leader, she advises the

board of directors, motivates employees, and drives change within the organization. As a

manager, she presides over the organization's day-to-day, month-to-month, and year-to-

year operations.

Erica Bubum is a CMO in SWEET O’ CAKES company. CMO is a corporate title

referring to an executive responsible for various marketing activities in an organization.

She is the most often the submit position reports to the CEO. She has a primary

responsibility for many areas such as sales management, product development,

distribution channel management, marketing communications which is including

advertising and promotions, pricing, and customer service.

Stella Eva is a CFO of SWEET O’ CAKES company. CFO is a corporate officer which

is primarily responsible for managing the financial risks of the corporation. She is

responsible for financial planning and record keeping. She is also responsible in doing a

financial reporting to higher management. Besides that, she is also responsible for

analysis of data.

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Evenny Sikin is a COO of SWEET O’ CAKES. The COO is responsible for the daily

operation of the company. She is routinely reports to the highest ranking executive,

usually to the CEO. She is also carrying the title of president which makes her the clear

number-two in command at the firm.

Dayang Rafezah is the CTO of the company. CTO is an executive-level position in a

company or other entity whose occupant is focused on scientific and technological issues

within an organization. The role became prominent with the ascent of the information

technology (IT) industry. As a corporate officer position, she is typically reports directly

to the CEO.

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2.0 COMPANY’S OBJECTIVE

SWEET O’ CAKES main objective is to achieve a break-even point within the first year

of commencing operating of business and continue to achieve positive percentage growth

that can help our company to grow steadily and remain dominant in the market segment

that we are strong in. SWEET O’ CAKES also wants serve our customer as a “king” by

providing delicious, attractive, and aromatic foods as well as provide the reasonable price

and excellent services for our customer.

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3.0 RESEARCH METHODS

3.1 INDUSTRY ANALYSIS

3.1.1 Size and Growth Rate

The number of buyers is approximately more than 2500 people per month, which consist

of local people, foreigners, and outsiders in a target market. This is especially important

for our company that wish to launch our product because our target markets are people

that stay in Labuan includes people that comes to Labuan which is likely to be able to

support a high volume of goods. Since our company is selling variety of homemade cakes

for the customers, a growth rate is predict to be increase based on positive feedback from

the customers. Market growth rate believe will be increase by contribution of organizer

team in advertising and provide transportation to the public for this carnival events. This

is able to expand our market and increase our profit by bringing more potential

customers. They are willing to buy the product as they have sufficient money.

3.1.2 Sales Projection

SWEET O’ CAKES is selling variety type of cakes for the first time. Our company

decided to look upon the overall fact from other sources that sell the similar type of

product like our company does. Our potential customer especially the local people

become our target potential customers to offering out products as they did not find them

very often in Labuan. For most of the local people and foreigner that stay in Labuan,

Sarawak Layer Cake is estimate having lots of demand from them as it is hardly to find

here for a cheaper price. Looking from the side of cakes business in the Labuan area

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itself, these items seems to be famous among the foreigner as they are not used to eat rice

for their daily meal as Malaysians do. So, they would prefer to buy wheat based product

such as cupcakes, bread, and other product. Therefore we predicted that these products

would attract most customers. Our company also provides flyers for local people,

foreigners, and outsiders.

3.1.3 Industry Structure and Participant

Economy: The small businesses can enter the industry with a relatively small amount of

capital. The two main determinants of our company success is the leaders' ability to

acquire sufficient distribution channels to cover operating costs and their ability to build

up brand recognition and loyalty. Distribution channels typically involve retail outlets,

such as selling our product at expo and can be more easily acquired we have an

established brand or the marketing resources to create one. Since the day we start our

business, we expect the customers will not hesitate to buy our foods. They are willing to

buy the product as they have sufficient money. They would spend it on item they want

and need like especially for food in our shop. Therefore, as for the economic factor, it is

suitable for our business.

Society: The society around the business is mostly the local people, who like to try

something new. That is what we offers, something that is not easy to be found in Labuan.

Therefore, our main target is to satisfy their wants, that is something different. We have

to know exactly what the customer might be interested in buying our products are like

and how many of them there are. Then we need to make some projections about target

market, in terms of how much of our products customer might buy, and how they might

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be affected by trends. Our target market and potential customers will more target to

dessert lovers. Dessert lovers come from different stage of age and races, so our company

may target all possible customers to come and purchase our foods. Customers are not

very price sensitive as far as quality cake is concerned. Moreover, nowadays the tendency

of cupcakes is tend to be famous for who want celebrate any party. Party exactly meets

the requirement of popular demand of cupcakes.

3.1.4 Key Success Factor

Businesses compete on price, quality, differentiation and relationships with key suppliers.

The key success factor of our business is the variety of cakes that we offered to the

customer. We will present to people cakes that is difficult to be found in Labuan. We also

have been promoting our product via social network, flyers, and mouth to ear promotion,

not only in Labuan town area but outside Labuan. These promotions would sure attract

many customers to our shop. Then, our target markets refer to buyer behaviour especially

they like to look for something attractive in appearance and tasty food. Our company

successfully meets this kind of customer’s demand as we are offering delicious, colourful

and aromatic cakes for them. Although SWEET O’ CAKES is a new company, there is

no doubt that we are competing with variety of similar businesses. Price might be one of

the advantages factor when competing against others competitors since we are offering

our foods in high quality with reasonable yet low price.

Our goal in preparing the target market section for clearly understands who our

customers are and how our products are directly meet the needs of the marketplace.

Properly identifying our potential customer base also helps to drive overall marketing and

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sales strategies that it will include within other sections of your business plan. Although

our product may meet the needs of a large constituency of potential customers, the goal is

to define our customer base as specifically as possible both quantitatively and

qualitatively. Naturally, we understand our customers, the better our chances of success.

Many times the best approach to answer the target market question like who is our

customer. It is to invest time and resources in primary market research. Conduct simple

surveys or focus groups. And if feasible, work with a reputable market research firm to

guide us through the process.

3.2 MARKETING ANALYSIS

3.2.1 Market Segmentation and Target Selection

Our target segmentation and potential customers will target more to dessert and sweets

lovers. Dessert lovers come from different stage of ages and races, so our company may

target all possible customers. We promote more products for kids and teenagers since

they prefer sweets and cakes. In addition, housewives also been targeted because they

like to try new cakes recipes.

3.2.2 Buyer Behaviour

Customers especially like to look for something attractive in appearance and tasty food.

Our company successfully meets this kind of customer’s demand as we are offering

delicious, colourful and various types of cakes. Moreover, customer prefers sweets

dessert in the party which is become trends nowadays.

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3.2.3 Competitor Analysis

SWEET O’CAKES is a new company, there is no doubt that we are competing with

variety of similar businesses. Price might be one of the advantages factor when

competing against others competitors since we are offering our foods in high quality with

reasonable yet low price. We also will be using SWOT analysis to help in the process of

decision making.

3.2.4 Marketing Plan

i. Overall Business Strategy

Generally, we will implement all the strategies that we do discuss among the

members. Since we are new in this business, we will concentrate more on cost

strategies. Strategies that been select are able to gain more profit and make our

products become well known.

At first, cost strategy is when we provide the lowest cost for our products. It is the

situation when company need to produce the large volume of cakes. In result, our

company will achieve economic of scale and our products will able to catch a

competitive price. In addition, we aim to be the cheapest cakes producer among

all the competitors in Labuan so that we can attract more customers.

One of our strategies is to attract customers with nice decoration appearance of

our products and bake the nicest cakes for our customer according to their

preferences. Having the best cakes in Labuan is a great marketing for our

business, as it will encourage more people to talk about our products and

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recommend our cakes to others. We also will advertise our new business

aggressively and doing some research on how to make our products well known.

We will increase more promoting strategies by differentiate our business from

other competitors through added services, such as customized our cupcakes and

other varieties of cakes according to customer preferences. Delivery service is

also available for customers that pre-order or purchase a lot.

ii. The Marketing Mix (4P’s)

To create the successful business, our company needs the right products in the

right price at the right place and using the most suitable promotion. So, we decide

the strategies to complete that.

a) Product

Our company is selling variety of cakes. Cupcakes as main products of

SWEET O’CAKES have an attractive and colourful appearance, aromatic

sense, and different taste in order to improve their market value. In

addition, we are customizing our cupcakes according to customer’s

choices which is we are different from other competitors. Besides that, we

also offer well known Sarawak Layer Cake and Caramel Cake as

customer’s second purchase choice of cakes. Our cakes are store and pack

in cleanliness guarantee condition.

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b) Price

SWEET O’CAKES offering products in very worthy and reasonable price

which all products. Cupcakes are selling in two prices which are RM2.50

for without topping and RM3.00 with topping for one unit of cupcake.

Moreover, we are customizing our products according to customer’s

preferences. For other cakes, we sell RM5.00 per slice for Sarawak Layer

Cake since the ingredients are various and expensive. While we sells the

Caramel Cake RM3.50 per slice. Our low price becomes our competitive

advantages compare to other competitors that selling in higher price than

us. We will produce high volume of products and we will sell it at the

lowest price among the other competitors in Labuan. With these strategies,

we will attract more new customers and achieve the good created image at

the first stage. We will put these pricing strategies to make our products

and company well-known.

c) Place

Our company’s location is in Labuan town area. We implement direct

sales for our product. Customers can buy our products directly from our

shop. An advantage of direct sales would be the contact we gain from by

meeting customers face to face. With this contact, we can easily detect

market changes and how we can adapt to various types of customers. In

the other hand, direct sales leads us how we can control the range, price

and promotion of the products. We provide phone-order for our products.

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d) Promotion

Our company had used few promotion ways to advertise and promoting

our products. We get our customer’s attention through advertising, public

relation and sales promotions.

3.2.5 Advertising

The inexpensive way of to inform people about our business is using social network such

as Facebook, which we provide useful and detail information about our products. We also

provide company’s websites to spread useful information to attract clients. It is widely

use to advertise our product to customers in Labuan town. Moreover, the usage of printed

material such as newspapers, magazines and flyers also been utilized by our company.

Brochures also will be distribute and paste around to attract customers and promote our

business. Direct promoting strategy, which is word of mouth is use to let people know

that our company is exist that time. Word of mouth depend on customers to telling the

good news about our products and this will acquire us to give out the best in opening

season of our company.

3.2.6 Public Relation

Public relation is the management of a company's public image that helps the public

understand our company and its products. It is vital to create good image of our company.

Being a good public which is involved in community, donating activities and many more

good-deeds activities also can be the way of promoting our company.

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3.2.7 Sales Promotion

Sales promotions are usually special offerings that encouraged more purchases from

customers. We include free sample for promoting our products since it still new. Other

than that, we provide loyalty programme, prizes and contest for or special customers.

This will encourage more customers consume our products because of these hot

promotions.

3.3 OPERATING ANALYSIS

3.3.1 General Approach to Operation

The business’ name is SWEET O’ CAKES and the company is expected to be extremely

popular with a wide range of consumers by selling and marketing a traditional Malaysia

treat which is the cupcakes. The opportunity for this format exists because the overall

food industry which is composed of two major segments, which are the full-service

segment and the fast food segment, also quick-casual segment is still a popular industry

to establish a new business in because food items are always necessary.

Our business is a partnership business. A partnership is the relationship existing between

two or more persons who join to carry on a trade or business. Each person contributes

property, labour or skill, and expects to share in the profits and losses of the business. A

partnership must file an annual information return to report the income, deductions,

gains, losses, excreta from its operations. Instead, it "passes through" any profits or losses

to its partners. Each partner includes his or her share of the partnership's income or loss

on his or her tax return.

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Our company have CEO, CMO, CFO, COO, and CTO. From combinations all of this

partners, we choose a type of partnership business. Our company has five members so it

is suitable to choose this type of business. The advantages of this type of business are it is

cheap and easy to provide. Secondly, it can share our skills each other as well as easy to

get a capital to start the business.

3.3.2 Product

Our company SWEET O’ CAKES offers variety of food and beverages include our main

product which is cupcakes, and option product which are Sarawak Layer Cake and

Caramel Cake with homemade proven secret recipes that able to catch customer’s eyes

and mouth. Cupcakes as main products of SWEET O’ CAKES have an attractive and

colourful appearance, aromatic sense and different taste in order to improve their market

value. Besides that, we also offer well known Sarawak Layer Cake and Caramel Cake as

customer’s second purchase choice food. As more people are beginning to eat desert,

cupcakes options are here. SWEET O’ CAKES provides three types of flavour which is

chocolate, butter and vanilla that according to the most preferences of the customers. In

other hand, side products such as Sarawak Layer Cake and Caramel Cake become

another option for our customers. So customer can choose which one they prefer to buy.

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3.3.3 Location

Since SWEET O’ CAKES focuses on local markets the Perbadanan Labuan or Labuan

Corporation provides us an excellent location for our business. Good location in the

Labuan town area which there are not much cupcake competitive.

3.3.4 Facilities and Equipment

We rent our facilities and equipment from the shop that we rent. The shop has a

completed kitchen that we can use to make our cakes. Electrical and water supply are

available for our shop. We also rent the van to deliver our cakes to our customer.

3.4 FINANCIAL ANALYSIS

3.4.1 Sources and Uses of Fund Statement

SWEET O’ CAKES

SOURCES AND USES OF FUND STATEMENT

RM RMSources of FundPartnership Investment (5 x RM 40, 000) 200, 000Total 200, 000

Uses of FundRaw Material 78, 910Expenses 121, 090 _______

200, 000

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Raw Material

Material Quantity Cost/Unit (RM) Total CostCupcake (Flavour - Chocolate, Vanilla, Butter)

Sugar (1kg) 500 2.20 1, 100Flour (1kg) 1, 000 3.00 3, 000Eggs (tray) 500 10.80 5, 400Cocoa Powder (100g) 1, 000 3.00 300Icing Sugar (500g) 1, 000 2.40 2, 400Milk (litter) 1, 000 5.00 5, 000Butter (stick) 500 4.50 2, 250Chocolate Colour (small bottle) 500 2.00 1, 000Vanilla Essence (small bottle) 500 2.10 1, 050Bicarbonate Soda (small bottle) 500 1.60 800Baking Powder (900g) 500 2.40 1, 200Chocolate Rice (pack) 500 1.60 800Paper Cup (100pcs) 1, 000 10.00 10, 000

TOTAL: 34, 300

Caramel CakeEggs (unit) 4, 000 0.40 1, 600Milkmaid (can) 400 2.00 800

TOTAL: 2400

Layer CakeEggs (tray) 500 10.80 5, 400Wheat Flour 500 2.40 1, 200Hong Kong Flour 500 2.40 1, 200Anchor butter 1, 400 13.90 19, 460Milo (500gm) 500 5.00 2, 500Milk maid 1, 000 2.30 2, 300Vico 500 3.70 1, 850Horlicks 500 5.00 2, 500Sugar 500 2.20 1, 100Browning 500 2.00 1, 000Marie biscuits 500 3.80 1, 900Seri kaya (can) 500 2.30 1, 150Coconut Milk 500 1.30 650

TOTAL 42, 210

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3.4.2 Expectation Quantity Sold and Sales for Each of Product

ProductQuantity Price Sales

estimationSales

unit RM unit/day RMCupcake (without Topping) 7500 2.50 250 18, 750Cupcake (with Topping) 7050 3.00 235 21, 150Caramel Cake (per slice) 8000 3.50 267 28, 000Sarawak Layer Cake (per slice) 7000 4.50 234 31, 500Sarawak Layer Cake (per cake) 2000 80.00 67 160, 000

TOTAL: 1053 unit 259, 400

3.4.3 Equipment and Operation Expenses

Item Quantity Cost/unit (RM) Total(RM)Kitchen (Monthly Rent)

Oven 100 350 35, 000Electronic Blender 100 90 9, 000Electronic Mixer 100 90 9, 000Refrigerator 69 400 27, 600Kitchen Utensils (set) 100 35 3, 500Electric - 1700 1, 700Gas - 900 900

TOTAL: 86, 700.00Stall

Shop (rent) 1 400.00 400.00Paper wrap 21 2.00 42.00Plastic Glove (box) 10 1.50 15.00Handkerchief (pieces) 3 1.00 3.00Tissues paper (box) 15 2.50 37.50Plastic Table cover 1 4.00 4.00Plastic Bag 18 2.50 45.00Trash Bag (M size) 15 3.90 97.50Cake stand (rent) 11 1.00 11.00

TOTAL: 655.00Others Expenses

Transportation (Van rental) - 3, 500.00 3, 500.00Wages and Salary 20 1, 500.00 30, 000.00Advertising - 125.00 125.00Telephone Service Fee - 110.00 110.00

TOTAL: 33, 735.00GRAND TOTAL: 121, 090.00

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3.4.4 Pro Forma of Income Statement

SWEET O’ CAKES

INCOME STATEMENT FOR THE MONTH END 30th MARCH 2011

RM RMSalesCupcakes without toppings (7, 500 x RM2.50) 18, 750Cupcakes with toppings (7, 050 x RM3.00) 21, 150Caramel Cake (per slices) (8, 000 x RM3.50) 28, 000Layer Cake (per slices) (7, 000 x RM 4.50) 24, 500Layer Cake (per cake) (2, 000 x RM80.00) 160, 000

259, 400Less: Cost Of Goods Sold

Cupcakes materials 34, 300

Caramel cake materials 2, 400

Layer cake materials 42, 210

(78, 910)

GROSS PROFIT 180, 490Less: Expenses

Kitchen rent 86, 700

Wages and salary expenses (1, 500x20) 30, 000 Stall expenses 655Transportation expenses 3, 500

Advertising expenses 125

Telephone expense 110 (121, 090)

NET PROFIT 59, 400

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3.4.5 Pro Forma of Balance Sheet

SWEET O’ CAKES

BALANCE SHEET AT THE END OF 30TH MARCH 2011

RMCurrent AssetsCash 259, 400

EquityCapital (RM40, 000 x 5) 200, 000Net Profit 59, 400

259, 400

3.4.6 Pro Forma of Cash Flow

SWEET O’ CAKES

CASH FLOW STATEMENT

RM RM

Cash ReceivedTotal profit 259,40

0

Expenditures

Raw Material 78, 910

Operating Expenses 120, 855

Total (199,765)

Net Cash Flow 59,635

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4.0 STRENGTH AND WEAKNESS

SWOT ANALYSIS

a) Strength

Our company has unique and wide range of exciting products. In addition, we

customizing our product due to customer preferences.

Not much cupcakes competition in Labuan

Good location - our shop is along the sidewalk area. Which is there is a lot of

people pass by early in the morning and evening.

Worker at SWEET O’ CAKES are highly motivated and believe in teamwork.

b) Weaknesses

Hard to target cupcakes lovers and layered cakes lovers. Customers have

different choices, some groups of customers prefer less sweets and more to

healthy kind of foods.

We fear the product will not satisfying the customers. Some of customers not

consume sweets products. They usually assume sweets products are unhealthy

to them. Especially, the oldies whose not prefer sweets type of foods.

Large market target. Our company are targeting on large group of people with

different ages and races.

Lack of a customer base. Since the company is new their name may only be

known by a certain amount of customers. The company must find ways to

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establish a larger customer. This lack of customer base can have a huge

impact on productivity.

c) Opportunities

The opportunity to have a successful professional career is achievable. The

rising demand products and the dedication of a strong management team helps

to give a chance to compete with other cakes business.

Our product is unique in market nowadays which we customized our cupcakes

according to customer choices and preferences. SWEET O’ CAKES should

show up in many activities to make a good public relation and also can spread

the news.

Blog and Facebook should updated regularly and offer new recipe at least

once a month. It is the cheapest network that will spread all our company’s

information and details.

Promoting and advertising should be do aggressively on the first stage

whereby we provide free sample, advertising and make a good public

relations. It is to make people know the existence of our company.

d) Threat

The increasing number of business with similar product is going to compete

with our company. Furthermore, it is difficult to struggle and compete with

others.

The existence of chain business that popular like Secret Recipes, Taka House

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and Starbucks are going to make our business shrink.

Decrease of the demand. If the demand of the cupcakes and other cakes are

decreasing occur and facing problem with less customers, this could mean

SWEET O’ CAKES may have to close the business.

5.0 FINDINGS OF RESEARCH

We still have doubt about our product will not satisfying the customers. There are many

types of customers, some of them love sweets types of foods and some of them not prefer

sweets, as they assumed sweets are unhealthy. However, our company has unique and

wide range of exciting products. Moreover, we are customizing our product due to

customer preferences. In this case, we can make and invent our cupcakes and other cakes

to organic and healthy one for the group of customers that not prefer sweets type of

cakes.

In the other hand, we are facing the lack of a customer base. Since our company is new,

the name may only be known by a certain people. Our company will find several ways to

establish a larger customer. We would advertise more, using the most useful and cheapest

social network, such as Facebook. This social network will indicates more detail on our

products. It is important to make our company well-know because the lack of customer

base can have a huge impact on productivity.

Due to large target market, our company hard to target specific groups of customers that

loves cakes and can bring profit to our company. Luckily, our shop is located at a place

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where peoples are always pass-by. We can observe what types of customers are attracting

to our products.

In additions, there is not much competition of cupcakes and layered-cakes here in

Labuan. The rising competition of the cake business will result to decreasing demand of

our products and together will lessen our customers.

Lastly, we have strong motivated and teamwork workers. They can help to achieve the

successful competition of cakes business. In the other hand, we will stress more on

advertise and ways of promote our new company so that it will move in line with the

other famous chain business like Taka Cake House, Secret recipes and Starbucks.

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6.0 RECOMMENDATIONS

i. Open another location

Our company will open another location after several steady years of

operation and a progressively growing customer base. This is one of the

long term planning in our company which can make our business better in

the future.

ii. License our products

Since our product is homemade cupcakes, Sarawak Layer Cake, and

Caramel Cakes, we will license our product because of the effective, low-

cost growth medium to serve our customer a branded product. This

licensing also minimizes our risk and it is low cost in comparison to the

price of starting our own company to produce and sell our brand or

product.

iii. Hire the effectively worker

We will hire the workers that dedicated who are willing to work full time

with us with the affordable salary. If our company cannot afford to hire

full-time employees, we will hire commission-only sales reps. Our

company only need to pay them what they earn.

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7.0 APPENDICES

PICTURES OF CUPCAKES

WITH TOPPINGS

WITHOUT TOPPINGS

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SARAWAK LAYER CAKE

CARAMEL CAKE

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