Students step into the business world

Press, 11 October 1982, Page 31

Students step into the business world

The New Zealand Chambers of Commerce have succeeded in bringing the business boardroom into schools.

It is all part of an on-going campaign to promote private enterprise through education.

The success of the inaugural project in 1980, heralded the way for schools throughout New Zealand to participate. The programme, which is based on an American scheme, originated because of the increase in pupils taking business studies and the lack of resource materials. Chocolate-coated walnuts, reflective safety stickers, sweat shirts, woollen hats and wooden toys are some of the products that have been traded.. The co-ordinator for the project in Canterbury is Mr A. M. Jolly. He says this year six schools took part and the results were typical of business — “extremely varied.” A maximum of $5OO capital is allowed for each company.

The chambers and business community act in an advisory role on legal, manufacturing and marketing aspects, but do not give any financial support. “We give no promises that if a company makes a loss we will come to the rescue," Mr Jolly says. Costings, cash flow, market estimation, acquiring the raw materials and manufacturing are the responsibility of the company. Students learn quickly the vital necessity of maintaining a profitable business. Company business tax of 45 cents in every dollar must

be paid to the chambers. This money is used to help finance the programme. “For many of the senior pupils on the board of directors. the project has provided a direct stepping stone from school into careers," Mr Jolly says. The six schools that participated in Canterbury were: Hillmorton High School Young Enterprise ■ (Hillmorton). Ltd, was incorporated to trade in plastic covers for telephone books, paper backs and exercise books. This proved to be an exercise in the use of distribution techniques to segment traditional markets. Rangiora High Schoo!

Rakau. Ltd (the Maori term for wood) marketed and manufactured wooden games and egg cups. The company successfully traded against North Island competition, selling directly to retail as widespread as Kaikoura to Oamaru. Riccarton High School Neves. Ltd. traded in Tshirts. To avoid difficulty with established markets, Riccarton had to select new distribution channels to avoid direct competition. Mairehau High School Nutcom. Ltd. was formed to pack, distribute and market chocolate-coated walnuts. After purchasing the raw material, the coating process

was contracted. Innovative packaging enabled them to successfully differentiate their product from established competition. St Bede's D'Boize. Ltd. was incorporated to trade in book covers. Special motifs were incorporated into the covers which enabled the company to meet various market requirements. Christchurch Boys’ High School Straven Traders. Ltd. was established to trade in personal leather products. In an effort to reduce the selling cost, this companychose to purchase door-to-door licences.