Coursework Handbook Marked Samples

Marked Sample A

Task 1

Title: Identifying a suitable project

Reported to: redacted

Reported by: redacted

1) Introduction

The purpose of this report is to show the process I went through to determine which business to start for my
Enterprise coursework. I looked in detail at two possible options in order to choose one. Considering whether
it was were viable, profitable, if I have what it requires starting the business.

2) Evaluation of options

Option 1 – Poultry layers

2.1.1 Summary of idea

Eggs provide a valuable yet affordable source of high quality protein and vitamins required for normal
growth. I would rear 50 birds to lay eggs. To do this, I would need to construct a chicken house, purchase
feed and chickens. Once the eggs are produced, they will need to be graded and packaged before they are
ready to be sold.

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2.1.2 Research findings

Later I did the same survey in three different areas of town.

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This means I will have to think about where I sell my eggs. 60% of people in school said they were interested
in quality eggs, less than 40% said they would buy free-range eggs. In high density areas only 30% said they
wanted free-range eggs. This could be a problem for me, as people may not be prepared to pay the prices I
need to charge to cover my costs. Where as over 70% of people in low density areas said they would be
interested in free-range eggs. This shows me where I need to advertise my eggs to give me the best chance
to attract potential customers.

2.1.3 Analysis – PEST, SWOT

PEST

Political:

1. Can access low interest loans to start up

2. Getting permission from my parents to operate from home
3. Marketing has to be truthful must not be comparative to other egg business. This may be difficult as
there are many guidelines and classifications for egg marketing.
4. Regulations for selling eggs – cartons must be labeled with producers name, date of lay and net
contents, labeled as unclassified, and kept at 15 degrees Celsius or less until selling time.

Economic:

1. Currently in Zimbabwe there is a recession, so since my product is a necessity and not a luxury it
could be successful. But people may have less money so may not be able to pay more for free-
range eggs.
2. Interest rates may be high if I borrow money

Social:

1. Eggs are a good source of protein so will be popular meaning more sales.
2. Not many recycling facilities so most people do not mind non-recyclable packaging
3. Customers may like to support local businesses, which could help my sales

Technological:

1. The customers, which my enterprise will be providing for, are not technologically advanced so no
marketing will be done on Internet. This means I need to find marketing communications that are
more suitable for my business.
2. Record keeping will be done on a computer as well as having a hard copy
3. Frequent power cuts therefore I need to have a back up plan. I may need to install a generator or
invertors to power the lights and refrigerators. This will add to my costs

SWOT Analysis:

STRENGTHS: WEAKNESSES:

 Could be cheaper than others Takes 4-5 months before chickens lay
 Some people may prefer to support eggs and a profit can be generated
local businesses  Need initial capital to start (about
 Guaranteed quality $600)
 No guarantee chicks will survive
OPPORTUNITIES: THREATS:

 Always a demand for eggs  Many local competitors

 Eggs seen as a healthy food  Many rules and regulations to follow

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2.1.4 Evaluative comment

This could be a lucrative business. However it can be time consuming. I would need to focus a lot on
finance. Building the cage would cost money, and I would have to develop an accurate budget so that the
business did not fail due to lack of funds. I also need to make sure I not leave out marketing. This would be
important to make people aware of my business helping me compete against the local competition. There
are risks. If a disease spreads then the chickens may die, so much of my start up capital would be lost and
the business may fail so I will have to make sure I know how to look after the chicks. The chickens might not
lay an egg or the eggs might be damaged. This would result in a loss of income.

Option 2 – Food cart

2.2.1 Summary of idea

Food is a basic need. The cart will provide a service to people who don’t have time to prepare their own food
before they go out. Taking the food to different locations means it will save them time.

The purpose is to provide people with small menu of light meals e.g. hamburgers, hot dogs and drinks. The
mobile cart will be moved around to places such as the university and parks, where there is the biggest
demand. The business will need a loan to buy the cart, and purchase ingredients. The food will be prepared
on a gas stove in the cart. I will need to employ someone to cook and operate the cart.

2.2.2 Research findings

I did a survey to discover food preferences according to possible customers. I asked people to tell me their
favourite foods between hotdogs, hamburgers, chips and pizza slices.

This option is risky because there could be a lot of money on the line.

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2.2.3 Analysis – PEST, SWOT

Pest analysis

Political:

1. Health and safety issues- regulations regarding sanitation and food safety, especially when being
prepared on the cart and not in a kitchen.
2. Restricted zones – these zones often include potential lucrative areas where food businesses are
allowed to operate.
3. Mobile food vendor permit – has exact descriptions of what is expected and who to contact if there
are any questions. Fees vary depending on the city.
4. Public property bans – such as on the streets and sidewalks need to contract with private property
owners to vend on their property.

Economic:

1. Food will have to be cheap because people cannot afford it if it is too expensive and would rather go
somewhere else where it is cheaper
2. There is a small recession so people will start spending less, so my food will need to be a necessity
not luxury.

Social:

1. Providing for all ages – menu needs to have a variety meaning more food and potential waste
2. Diet – many students already buy fast foods so my business will be popular (see research findings)
3. Pollution – cart will be manual therefore not creating pollution, but when cooking / heating the food
there may be air pollution. This could create problems with customers but may be avoided by
precooking the food first. There is also the risk of litter created from the plates or packaging used for
the food. This could upset people.

Technological:

1. Since this will be providing mainly for students, marketing on social networks will be a good idea.
2. Production will be the traditional way, because new methods are too expensive i.e. Machines
3. Record keeping will be done on paper then later put onto a computer so I have a hard and soft copy.

SWOT Analysis:

STRENGTHS: WEAKNESSES:

 Ability to be mobile – more convenient Cost of cart and other equipment may
 Food can be cheaper than big be expensive
franchises  I lack cooking skills
 Food will be quick and easy to prepare  Cost of employing someone results in
less profit
OPPORTUNITIES: THREATS:

 No other businesses like this at the  Many legal issues regarding sanitary
university and food production
 Need to get permit

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2.2.4 Evaluative comment

This is a great idea, which can be successful. The business would demand constant attention in the daily
running. As the cart can be moved, this might attract customers, as it could draw a crowd, and it can be
moved closer to where events happen. However the cost for purchasing a cart will be high, and so therefore
it may take a very long time to start making profit.

For this option, I would also have to purchase a Mobile Food vendor permit before starting, as well as
research different locations which are lucrative and do not have bans. My lack of food knowledge means I
would need to employ someone to develop and cook a menu which can be quick to prepare as well as
cheap. This would increase my costs. Because of this, I may have to increase prices that could lead to fewer
sales as people look for cheaper alternatives. Also my market research shows that many foods are popular,
so I would need to offer all four choices to ensure sales, which again increases my costs.

Finding someone who is able and willing to do all this is likely to be difficult. According to the PESTEL and
SWOT this option is risky, and require a large start up capital. There is also a range of legal issues that I
might battle to overcome particularly as I am a minor. For examples to sell food I would have to obtain
permits which may not be possible for me to obtain. I may have to ask my parents to apply for the permit,
and they may want more say over what I do. Having to meet all the legal issues would increase my costs
and possibly delay the start of the project.

4) Conclusion and summary of option chosen

After reviewing both options, (see summary storyboards in Appendix) and analysing information gathered I
have chosen Option 1. It can be a lucrative business, if done properly, as I can guarantee a considerable
income all year round. It will be risky at the start, as it requires space, capital and knowledge. Having only 50
chickens will reduce the amount of capital I would loose if my business fails. The second option is creative
and based on my market research would be profitable, but is not appropriate due to my age, the skills I am
good at and my access to funds.

Overall I think the egg option is better than the food cart because I am more interested in it, and if you are
interested in something, you are more committed and you have a higher chance of success.

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Appendix 1

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Comment

This is a well-constructed report showing good knowledge of Enterprise concepts and terminology. The work
is presented in an appropriate layout, and uses a variety of communication methods fully suitable for the
audience.

In the report, the candidate has clearly considered both the advantages and disadvantages of each project
before making a final decision. Issues such as feasibility, relative demand and cost associated with each
option are considered. Evidence is presented to support the choices made. Detailed explanations are
offered to justify the decisions made. The main research is around the SWOT and PEST. However many of
the observations appear to be opinions, rather than based on actual research. In this respect, the report
would have benefited from greater use of market research data or other data gathered to support the points
being made.

This work is therefore placed in band 3, with a mark of 9.

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