Professional Documents
Culture Documents
1 Statement of Communications Objective
YA.co’s Annual Report provides an overview of our corporate performance during the operational period (June to
October 2008).
The Annual Review aims to provide accurate information to meet the needs of all stakeholders who have an
interest in our activities. These groups include:
• YA.co Employees
• Young Achievement Australia
• Clients
• Media
• Local Communities
The following pages outline YA.co’s operational performance, growth and achievements. The Review also
includes overviews by each of our departmental directors providing an insight into the management and function
of their department during the operational period.
2 Our Organisation
2.1 Who We Are
YA.co is a wooden craft production company founded by a group of current UQ students with the support from
Young Achievement Australia (YAA). YAA organizes business activities to foster entrepreneurship among
teenagers and university students. YA.co employees are from a full spectrum of backgrounds, each bringing
previous experience and a set of skills to assist in the effective operational development of the company.
2.2 What We Do
YA.co is specialized in hand‐made wooden decorations and accessories. YA.co believes that the best customer
service is delivered by providing customers with options. As such, the distinguishable feature of our product is to
integrate customers' needs into the product, by engraving customers' ideas on wooden door hangers. Our
business is primarily for the educational purposes of the employees, however in accordance with YAA regulations
any profit accrued throughout the operational period is redistributed to the shareholders of YA.co.
YA.co | Annual Report 2007 | Page 1
3 Board of Directors
Christine Yeung Aaron Sparshott
Managing and Human Resources
Manufacturing Director Director
Currently, in the third year of Currently, in the second year
her BCom at UQ. Experience of his BSc at UQ. Prior
in management (Human and experience in project &
product/services) &
event management whilst
customer service. Also prior
previously studying
experience in the crafts
industry. BE/BEcon.
Ken Truong Wayne Li
Co‐Finance Director Co‐Finance Director
Currently, in the first year of Currently, in the third year of
his MCom at UQ. From a his BCom at UQ. Practical
marketing & corporate law experience fundamentally in
background but also has finance, but also in customer
practical experience in service and other business
finance. roles.
Raye Newman Kelly Le
Environmental Director Sales Director
Currently, in the first year of Currently, in the third year of
his Diploma of Screen. her BBusMan at UQ.
Experience in graphic Experience in marketing,
design/web design, also has human resources and
an aptitude for creating a general business.
home environment which
adheres to sustainable
practices.
Jenny Peng Elizabeth Coleman
Marketing Director Company Secretary
Currently, in the third year of Currently, in the first year of
her BCom at UQ. Experience her BIHTM at UQ. Previous
in finance, research and experience in YAA
communication and businesses and has acquired
customer services. general business skills
through work and courses.
YA.co | Annual Report 2007 | Page 2
4 Managing Director’s Report
4.1 Product description
Our products are personalised door hanger by engraving the message on the spot. Our customers are
provided with a broad range of colour choice for the base door hanger and different shape of wood ship
on top of the door hanger.
4.2 Review of acceptance of the product
The eye catching colour attracts our target customer and they perceived our product as a unique art craft
for their family and friend. Also the product fits in customer need for Christmas gift.
We have been to 3 markets‐ UQ, Trade Expo and Eagle Street Market.
Although YA.co sold only small amount of product, by looking at the total number of people in those
market, the percentage of total travel people attracted to our product is
4.3 Evaluate the effectiveness of strategies
Ya.co had been to 3 market which are UQ market, Eagle street market and Trade expo.
On UQ market, we were planning to attract University student by providing discount for our grand
opening. However, student reaction on our product has been fairly low and the sales are mainly from
mother or women searching gift for children. Therefore, the low sale is attributed to the exposure to the
wrong market.
In terms of store setup, the colourful and energetic energy had been successfully aligned with our product
feature which are colourful and eye catching, so that the coherent image had been delivered.
The same store setup is used in other market.
On Eagle street market and Trade expo, we evaluated and evolved new strategy from the experience from
the UQ market. Instead of giving discount for our product, we purchased wooden ice cream stick for a low
price ($2.5 for 40 pieces), engraved our company name and certain message and gave out for free sample.
The decision made based on the following reason:
o The product is a new product that people are not fully aware of its’ existence
o People are also not known the benefit of having the flexibility of the engraving
o Free sample attract more people to place interest on our product
o Comparing the cost of the giving out discount and free sample, the low cost of the wooden stick work
more effective and efficient then the discount
o It is easier for us to control the cost
From the reaction of our customers, the awareness of our product has been highly increased.
4.4 Overview of performance compared to goals and target significant
achievements
The performance has not reached the goals and target and are not showing any return to our shareholder.
We haven’t been really exposed to the right markets that have enough traffic to generate enough sales to
cover the cost. As our product emphasis on spot engraving, wholesale to other shops or distribute through
middle man is not suitable for our business. It has been a constant struggle for our company to find the
place to sell our product and being strongly limited for our distributed channel.
YA.co | Annual Report 2007 | Page 3
The lack of corporation on our team also causes slow progress and delay reaction upon the low record of
sales.
4.5 Return to shareholders
Currently we are still working on our sale to the community and doing our best to gain the return for our
shareholder. However, in terms of return to our shareholder from our current financial statue, we are
making lost at the moment.
4.6 Expression of thanks to the Sponsor Company and mentors
We had two irresponsible mentors who only attended a few meetings in this group. However we still
would like to give our appreciation to their effort and limited advices. Special thanks however are
appropriate, to Jennifer Chew and Laura Turner from YAA in assisting our company through its
development and operational phases.
Christine Leung
Managing & Manufacturing Director
YA.co
YA.co | Annual Report 2007 | Page 4
5 Departmental Overviews
5.1 Human Resources
Our people form a fundamental component of YA.co and as such focus was directed into effectively
utilising individuals’ skills and subsequent integration into the company’s organisational structure. An initial
assessment of each individual was undertaken to determine current skills and past experience to guide the
appointment of roles within YA.co. Employee’s details and all other relevant information to the HR team
were stored using the leading open source human resources management (HRM) software, OrangeHRM
(OrangeHRM Inc.). Staff retention rates over the course of the operational period were below par, with
three employees leaving the company. To accommodate the loss of these three employees, modifications
were made to the organisational structure with the appointment of Kalie Le to Sales Director. Staff
recruitment strategies were entirely ineffective, with no new employees hired beyond the initially start
date. The main reason cited was, that the lack of a reliable mentor was viewed as a factor affecting the
stability of the company.
Effective communication amongst employees was crucial, and as such secondary mediums were set up to
provide a backup to the use of just email alone. The Facebook group initially played a pivotal role in
employee communication, but during the operational period its use diminished. An attributing factor to its
diminished role was that response time was too slow via this medium. Attendance of YA.co employees was
reasonable, despite a breakdown in communication and leave procedures outlined in the business plan.
Training was provided in engraving to employees by Christine Leung (Managing/Production Director) on the
basis of artistic skill and a willingness to learn. Employees did acquire basic skills through this training
regime, however to ensure the quality of our product, Christine Leung undertook most of engraving
process.
YA.co lacked mentor support throughout the operational period, whilst not catastrophe it was detrimental
to smooth operation of YA.co. Mentor support would have particularly been beneficial in situations that
required an external mediator. To some degree, the role of the mentor was carried out by Young
Achievement Australia officials (Jennifer Chew and Laura Turner) who offered professional advice where
appropriate.
At YA.co people are not only our greatest asset but also the driving force of our group. YA.co’s small team
of dedicated and enthusiastic employees has in itself created a work environment in which each individual
has shown the capacity to willingly accept new responsibilities and overcome the challenges that arise.
Aaron Sparshott
Human Resources Director
YA.co
YA.co | Annual Report 2007 | Page 5
5.2 Manufacturing
5.2.1 Product selection, including testing and the evaluation of alternatives
In the beginning stage:
The product we plan is wood pledge attached with string
Due to the complexity, high cost and high man power involved to produce our original product, we adopt
the alternative which is door hanger with a hole.
The alternative not only reduces the work involved to produce the final product but also provide
convenience to our customer by simply hang on their doorknob.
In terms of choice of material and colour:
Since there has been change in the use of material, due to the irresponsibility of the suppliers, we change
the production progress.
Instead of simply engrave on top of the former pine wood door hanger, we have to paint on the existing
door hanger and stick small pine wood chip on top, so that not only it will provide a better quality to
prevent damage, but it also act as a more attractive element in our product. This new features are more
welcome by children and mothers.
Steps in the production process
Stage 1: Stage 3:
Stage 2:
Paint Different small wood chip/
Paint satin plastic crystal
colour
5.2.2 Production targets and outcomes, perhaps with an annotated graph showing improvements
in production rates
The product progress is functioning in an ideal scale and efficiency.
All production process involved 3 people
Production targets‐
Stage 1: 10 hours paint 100 pieces in 10 different colours.
Every 10 pieces in an hour
Stage 2: 10 hours paint 100 pieces
Every 10 pieces in an hour
Stage 3: Stick on the spot with a glue gun. 30 second.
Review
Stage 1: 4 hours paint 100 pieces
Stage 2: 6 hours paint 100 pieces
Stage 3: 10 second
5.2.3 Systems to ensure quality and safety
We have glove and mask for painting staff to reduce the smell
Manufacturing director as a professionally trained supervisor for the whole producing process
Safety box have been well placed to provide instant cure for any accident
YA.co | Annual Report 2007 | Page 6
5.2.4 Recognition of suppliers and subcontractors
First suppliers‐ Crazy Clerk
A well know and recognised corporation selling different variety of product.
Material purchased: Pine wood door hanger for 21 pieces
However due to lack of demand, their inventory is not enough to supply to us for the rest of period.
Notes: we purchase the rest of their stocks.
Second suppliers‐ Custom creations
Melbourne family wood craft supplier
Material purchased: 100 pieces scrape wood (original order: pine wood)
Our original agreement is 100 pieces pine wood door hangers for $1 each, however when the stock
arrived, we found out they gave us scrape wood without any notification. Considered more cost and time
will spent on returning and finding the original wood, we decided to use it and change the product so
that time and resources could spend on productive activities.
5.2.5 Outstanding contributions by individuals
Environmental director –Ray
Marketing director‐Kelly
They are both committed and enthusiastic teammates who show their dedications on the whole
producing progress. We created an energetic and relaxing atmosphere when painting and coding the
product.
Christine Leung
Managing & Manufacturing Director
YA.co
5.3 Environmental
The aim of Ya.co is to have a product that is friendly to the environmental from creation to completion.
Eco paint and gloss were researched thoroughly, but the cost was too high for the company to make a
profit. We were able to find a supplier of scrap wood, thus recycling it and also looked for the best
alternatives for accessories and packaging. Overall, measures were taken where feasible to minimise the
environmental costs associated with the product.
Raye Newman
Environmental Director
YA.co
YA.co | Annual Report 2007 | Page 7
5.4 Marketing
5.4.1 Overview
Our marketing plan was highly effective in gaining general interest in the product, but struggled in
converting general interest into sales. A summary of YA.co’s marketing operations and the effectiveness
of the marketing plan against several criteria is provided for your viewing below.
5.4.2 Target market
The target market for YA.co was initially teenagers, who are trying to define self identity during their
adolescent year. This was later revised, as YA.co progressed and our target markets were re‐defined to
focus on middle age parents and the elderly.
5.4.3 Methods of positioning the company and the product in the market
A number of methods were used to position our company towards our target market. In the product
design stage, we decided to use a variety of colours for our door hangers in order to appeal our target
market segment. During the course of the business, specific procedures were put into place to ensure
that our company's image, products and marketing activities were consistent and attractive to our target
market audience. Examples of the procedures include: design and layout of booth at market day; special
uniform design; exploring and experimenting the appropriate market place for our products (setting up
booths at UQ market Day and the Riverside Markets); e‐marketing through YA.co’s website and personal
selling.
5.4.4 Advertising, promotions and publicity generated
Since there were cost constraints due to, limited capital investment and resources, only limited funds
were allocated to advertising and promotions. However, besides the publicity generated through our
website online, our marketing team did manage to produce some flyers to distribute during the UQ open
day to generate publicity and attract attention from customers.
5.4.5 Trade Expo performance
Overall, the sales result was reasonable at the trade expo given the limited people traffic on that day and
intense competition from other YAA companies. The main sales methods used by YA.co were personal
selling by sales people and live demonstrations at the shop front.
5.4.6 Marketing and Promotional achievements
A complete market research program was designed, conducted and analysed by the marketing team,
which intern helped the decision with market orientation and market mix decision. The most successful
marketing avenue during the operational period was via personally selling of the product.
Jenny Peng
Marketing Director
YA.co
YA.co | Annual Report 2007 | Page 8
5.5 Sales
The unique features and original designs established by the YA.co team were key drawcards of the
product. Customers could customise their door‐hangers with extra decorations and messages engraved
on the spot. The product is different to most competitive products, which was a crucial element of
YA.co’s sales strategy. YA.co had stalls at three different markets throughout the operational period.
Sales were carried out on a regularly basis at UQ market day, mainly targeting students and staffs. While
operations at the UQ markets were useful due to no associated costs, the market environment lacked the
key target audiences. As such, sales at UQ compared to other venues was substantially less when
comparing the amount of time operating at that venue. The Trade Expo and Eagle Street Sunday markets
produced better returns per amount of time in operation, probably as result of greater numbers of our
target audience at those venues.
YA.co aimed to sell at least 10 pieces at the usual UQ markets, 50 pieces at Trade Expo and 30 at the
Eagle Street Sunday market. Only the first two sale targets were achieved. Initially, product price was set
to $10 whilst only operating at the UQ markets. Overtime, a sales strategy was developed whereby prices
were altered throughout the day to maximise sales. The basic on the day sales plan for each market was
that, products were sold at full price from open till 12pm and half price from noon till close. Customers
who bought more than 5 pieces as one purchase would receive a discount. The total number of units sold
throughout the operational period was ??? at value of ???.
The majority of YA.co’s employees had previous customer service experience ensuring that YA.co as a
company portrayed a friendly and helpful image. Where employees lacked experience, they were trained
and offered tips by other team members on how to deal with customers. Due to the small number of
team members, each of YA.co’s employees was assigned to different stages of the selling process and
positions were rotated throughout the operational period between markets.
Kelly Le
Sales Director
YA.co
YA.co | Annual Report 2007 | Page 9