BUSINESS PROJECT

1. BUSINESS PROJECT • Aims of this unit: • Develop your enterprising capabilities, knowledge and confidence • Apply academic study in the key business areas such as marketing, finance, and management • Helping you to identify opportunities and to create your own business

2. BUSINESS PROJECT FIRST TASK - To choose a relevant mode of business -

3. BUSINESS PROJECT Generally, in the early history of business models, there are two modes of business 1) Brick and mortar business (bricks and mortar business/B&M business) is defined as: - a company that possesses a building or store for operations - this business model is used by companies that have a physical presence and offer face-to-face customer experiences - Hence, considerations about foot traffic, storefront visibility and appealing interior design is significant

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5. BUSINESS PROJECT 2) E-commerce is defined as: buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks E-commerce can be divided into: - E-tailing on websites with online catalogues/ "virtual mall" - The gathering and use of demographic data through Web contacts and social media - Electronic Data Interchange (EDI), the business-to-business exchange of data - E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters) - Business-to-business buying and selling

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7. BUSINESS PROJECT Modern business models: Bricks and clicks model - Business model by which a company integrates both offline (store) and online presences - One example of the bricks-and-clicks model is when a chain of stores allows the user to order products online, but lets them pick up their order at a local store

8. BUSINESS PROJECT 2) Collective business model - Business system- typically composed of large numbers of businesses or professionals in the same fields of endeavour, which pools resources, shares information or provides other benefits for their members - For example, a high-tech campus provides shared resources (e.g. lab facilities) to the firms located on its premises, and in addition seeks to create an innovation community among these firms and their employees

9. BUSINESS PROJECT 3) Cutting out the middleman model - The removal of mediator in a supply chain: "cutting out the middleman“ - Instead of going through traditional distribution channels, which had some type of intermediate (such as distributor,wholesaler, broker, or agent), companies may now deal with every customer directly, for example via the Internet

10. BUSINESS PROJECT 4) Direct sales model - Direct selling is marketing and selling products to consumers directly, away from a fixed retail location - Sales are typically made through party plan or one-to-one demonstrations, and other personal contact arrangements - definition is- The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs

11. BUSINESS PROJECT 5) Fee in free out model - Business model which works by charging the first client a fee for a service, while offering that service free of charge to subsequent clients - The model is appropriate in business environments (for example, digitization services) where there is a one-time cost to develop a product or service but little or no cost involved in its following distribution

12. BUSINESS PROJECT 6) Franchise - Franchising is the practice of using another firm's successful business model - For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods and avoid investment and liability over a chain - The franchisor's success is the success of the franchisees - The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business

13. BUSINESS PROJECT 6) Fremium business model - Business model that works by offering basic Web services, or a basic downloadable digital product, for free, while charging a premium for advanced or special features

14. CLASS EXERCISE- As business students, are you interested in establishing your own business? - If you are given an opportunity to establish your own business, what types of products do you want to sell? Are you going to sell the products that you personally like OR are you going to sell products that your potential customers want? BUSINESS PROJECT

15. CLASS EXERCISE- Do you guys know who Tony Fernandes is? BUSINESS PROJECT

16. BUSINESS PROJECT SECOND TASK - Form a soletradeship/ partnership -

17. BUSINESS PROJECT • SOLE PROPRIETORSHIP/ SOLE TRADER/ PROPRIETORSHIP • a type of business that is owned and operated by one individual and there is no legal distinction between the owner and the business • The owner receives all profits • unlimited responsibility for all losses/debts • Every asset of the business is owned by the proprietor

18. BUSINESS PROJECT • Advantages • Easy to organize • small amounts of capital to start and run • High flexibility for the owner (he/she is the company’s own boss) • Due to the owner's unlimited liability, some creditors are more willing to extend credit • - The owner receives all the profit of the business

19. BUSINESS PROJECT Disadvantages • Banks are reluctant to grant loans due to its small assets and high mortality rate • The owner is responsible for paying all debts and damages of their business • If business is not successful, creditors may force the sale of the proprietor's property/ business property to satisfy creditors’ claim • - When owner dies, the continuation of the business is difficult, because a new owner must typically accept business’ liabilities

20. BUSINESS PROJECT PARTNERSHIP • A business organization in which two or more individuals manage and operate the business • Both owners are equally and personally liable for the debts from the business • A partnership is formed between one or more businesses in which partners (owners) co-labour to achieve and share profits and losses • Definition according to Civil Law: • ‘A partnership is a nominate contract between individuals who, in a spirit of cooperation, agree to carry on an enterprise; contribute to it by combining property, knowledge or activities; and share its profit’

21. BUSINESS PROJECT • Advantages • Due to the nature of the business, the partners will fund the business with start up capital (more partners there are, the more money they can put into the business, which will allow better flexibility and more potential for growth) • A partnership is generally easier to form, manage and run • Partners can share the responsibility of the running of the business • Partners share the decision making and can help each other. More partners means more brains that can be picked for business ideas and for problem solving

22. BUSINESS PROJECT • Disadvantages • Danger of disagreements between the partners • Because partnership is jointly run, it is necessary that all the partners agree with things that are being done. This means that in some circumstances there are less freedoms with regards to the management of the business • Ordinary Partnerships are subject to unlimited liability, which means that each of the partners shares the liability and financial risks of the business. Which can be off putting for some people • Partners share the profits equally. This can lead to inconsistency where one or more partners aren’t putting a fair share of effort into the running or management of the business, but still reaping the rewards

23. BUSINESS PROJECT Activities regarding partnership

24. BUSINESS PROJECT THIRD TASK - Name your company/business -

25. BUSINESS PROJECT • The company name you select for your small business has numerous branding, marketing, and web implications so needs careful consideration • Your company name goes before you,  needs to be memorable and also needs to be work on the internet for SEO marketing. Search engine optimization (SEO) is the process of affecting the visibility of a website or a web page in a search engine's "natural" or un-paid ("organic") search results • This guide will help you decide on a strong name for your small business: • * First impressions • * Impressing investors • * Making your name web-friendly

26. BUSINESS PROJECT • FIRST IMPRESSIONS • When you're deciding on a name, consider whether you want it to explain what the business does, or whether you want a more abstract name • Also decide what you want it to convey, for example, 'The Fine Cheese Co' reflects traditional, quality values, 'Smarta' has a more modern sound • Make sure your final name doesn't mean anything else in any other languages - if you decide to trade overseas, you may regret it • - Is an abstract name appropriate, or would an explanatory one be more suitable? • - What values do you want it to reflect?

27. BUSINESS PROJECT • DO NO HARM • It’s better to have a neutral name, that’s easy to remember, easy to style, easy to pronounce, with no obvious negative connotations or limitations • A name that can’t be confused with competition • Think of your name as a blank canvas that can be styled to your messaging and the product experience itself • - Don't worry about coming up with a name that is going to express everything that your business does

28. BUSINESS PROJECT • GIVE THE RIGHT IMPRESSION • Think about the company that you want to launch • Make sure that you are getting it right in terms of category, the target and the tone • This is pretty basic, but you wouldn’t want a light hearted, silly name for something that’s very serious and vice versa • And at the same time, you wouldn’t want something dry for a fun company

29. BUSINESS PROJECT • A winning business name has to be memorable – but easy to spell • Obviously, your potential customers and clients need to be able to remember your business name • But they also need to be able to find it easily if they’re looking for it in a phone book, directory or online • So choosing a business name such as “Crychalwellyn” is a bad idea. Unique is good but difficult spellings are a bad idea.

30. BUSINESS PROJECT • A winning business name needs a visual element • Generally we are hard-wired to “see” images when we read or hear language, and incorporating a visual element into your business name can be a powerful aid to customers’ memory (and a powerful advertising tool) • So you want your business name to have a strong visual element to it • For example, a boutique selling feminine clothing is name as FEMME ME – (FEMME literally means women and being feminine and ME means the customers who are wearing clothing from this boutique is seeing themselves as being feminine)

31. BUSINESS PROJECT A winning business name has to have positive connotation - When you create a business name, you need to choose words that have the positive connotations that you want people to associate with your business – and make sure these connotations are suitable for your business • A business name has to be fairly short • It is vital because you want customers to be able to remember your business’s name • It’s also important for promotional purposes. You want a business name, for example, that will fit well on a business card, look good displayed on a sign or in an ad, and perhaps even a business name that will serve well as a domain name and show up well in search if you have an online business. So keep it as short as possible

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33. BUSINESS PROJECT ACTIVITY Write on a piece of paper: 2 possible names for your company and the ‘meaning’ behind those names

34. BUSINESS PROJECT FOURTH TASK - Appoint personnel-

35. BUSINESS PROJECT The importance of a good organization and management team • The reason that you need to make sure that you have a good organization and management team for your business is that it will keep things running smoothly • It will ensure that everybody knows what they are supposed to be doing and what the goals of the business are • This will keep everyone on the same page and working towards the same goals

36. BUSINESS PROJECT The importance of a good organization and management team - Creating the organizational structure of your company should be fairly straightforward - What you need to make sure of is that you have clear lines of both communication and responsibility - Everybody has to know who is responsible for what, this is the only way to ensure that things get done properly - This has to be a two way street, it can't just be about management telling employees what to do, there has to be a way for employees to bring issues to the attention of management

37. BUSINESS PROJECT HOW TO BUILD A MANAGEMENT TEAM STEP 1 Determining Which Management Team Members are Necessary Examine the state of your company Understand your own weakness Asks help from professional network STEP 2 Recruiting Members of your Management Team Promote from within Look for talented leaders in your industry Network Get professional help

38. BUSINESS PROJECT HOW TO BUILD A MANAGEMENT TEAM STEP 3 Developing your management team Setting up meeting Consider developing a strategic plan Delegate necessary tasks/responsibilities Give management team the necessary authority

39. BUSINESS PROJECT CLASS ACTIVITY MATCHING JOBS WITH ITS RESPONSIBILITIES

40. BUSINESS PROJECT • MANAGER • Making sure that all members know about their responsibilities • Lead group members to co-operate with each other • Ensuring that members are doing the works on time • Solve any issues/difficulties that might be faced by business • Helps other group members • Making sure that business operation is running smoothly • ASSISTANT MANAGER • -Assisting manager as well as other members • -In case of any issues/difficulties, responsible to report those issues to manager • -Sharing ideas/opinions with other members

41. BUSINESS PROJECT FINANCIAL MANAGER -Preparing transaction records of business -Continuously updating accounts -Keeping cash (in/out) ASSISTANT FINANCIAL MANAGER -Keeping all receipts/any financial documents -Helping financial manager in preparing transaction records -Collecting business’ funds -Validate records’ accuracy -Handling wages and salaries of members

42. BUSINESS PROJECT • MARKETING MANAGER • Promoting business (through creative advertisements) • Conducting survey • Develop ideas in attracting customers • ASSISTANT MARKETING MANAGER • -Assisting marketing manager in creating creative ideas in promoting business • -Printing any promotional materials for business • -Giving out business’ leaflets, business cards, etc • -Updating social media of business (Facebook, blogs, Twitter, Instagram, etc)

43. BUSINESS PROJECT • HUMAN RESOURCE MANAGER • -Develop, advise on and implement policies relating to the effective use of personnel within an organisation • PRODUCTION MANAGER • -Keeping records of goods ordered and received • -Controlling purchasing budget • PURCHASING MANAGER • Searching and dealing with suppliers for business’ products • Building fruitful relationship with suppliers • OPERATION MANAGER • Taking attendance of group members (during business operations) • Preparing business’ schedule • Responsible in preparing booth (every week)

44. BUSINESS PROJECT • HOMEWORK • Form a group • 1 group= 6 students • Finalise your company’s name • Decide on each member’s job

45. BUSINESS PROJECT CREATING LOGO FOR YOUR COMPANY Your logo is a visual representation of everything your company stands for. Think of McDonald's golden arches or the Nike swoosh-these two impressive logos embody these companies well. Ideally, your company logo enhances potential customers and partners' crucial first impression of your business. A good logo can build loyalty between your business and your customers, establish a brand identity, and provide the professional look of an established enterprise. With a little thought and creativity, your logo can quickly and graphically express many positive attributes of your business, too.

46. BUSINESS PROJECT CREATING LOGO FOR YOUR COMPANY Logo TypesThere are basically three kinds of logos. Font-based logos consist primarily of a type treatment. The logos of IBM, Microsoft and Sony, for instance, use type treatments with a twist that makes them distinctive.

47. BUSINESS PROJECT CREATING LOGO FOR YOUR COMPANY Then there are logos that literally illustrate what a company does, such as when a house-painting company uses an illustration of a brush in its logo

48. BUSINESS PROJECT CREATING LOGO FOR YOUR COMPANY And finally, there are abstract graphic symbols-such as Nike's swoosh-that become linked to a company's brand

49. BUSINESS PROJECT CREATING LOGO FOR YOUR COMPANY • Before you begin sketching, first articulate the message you want your logo to convey. Try writing a one-sentence image and mission statement to help focus your efforts • Look at the logos of other businesses in your industry. Do your competitors use solid, conservative images, or flashy graphics and type? Think about how you want to differentiate your logo from those of your competition • Focus on your message. Decide what you want to communicate about your company. Does it have a distinct personality-serious or light-hearted? What makes it unique in relation to your competition? What's the nature of your current target audience? These elements should play an important role in the overall design or redesign

50. BUSINESS PROJECT CREATING LOGO FOR YOUR COMPANY • Make it clean and functional. A good logo should be scalable, easy to reproduce, memorable and distinctive. And be sure to create a logo that can be reproduced in black and white so that it can be faxed, photocopied or used in a black-and-white ad as effectively as in colour. • Your business name will affect your logo design. If your business name is "D.C. Jewelers," you may wish to use a classy, serif font to accent the letters (especially if your name features initials). For a company called "Lightning Bolt Printing," the logo might feature some creative implementation of-you guessed it-a lightning bolt.