ayushi patel

8/2/2019 AYUSHI PATEL

1/31

0

NAME: FADIA SWALEH SAEED.

STUDENT ID/REGISTRATION NUMBER: B/P/766/09.

BUSINESS PLAN PROJECT.

INSTRUCTORS NAME: JENIFFER.

CENTRE NAME: ST.PAULS UNIVERSITY.

FACULTY: BACHELOR DEGREE IN BUSINESS

ADMINISTRATION.

PROJECT NAME: SUGARLAND BAKERY,

DATE SUBMITTED:


2/31

1

TABLE OF CONTENTS

DEDICATION2

ACKNOWLEDGEMENT...3

EXECUTIVE SUMMARY.5

CHAPTER ONE

1.0BUSINESS DESCRIPTION.61.1 THENATURE OF THE BUSINESS & INDUSTRY TRNEDS..6

1.2 THE COMPANY...7

1.3 THE PROUCT OR SERVICE...9

1.4 THE OPPORTUNITY AND ENRTY STRATEGIES10

CHAPTER TWO

2.0 MARKET ANALYSIS AND MARKETING PLANS..11

2.1 MARKET RESEARCH AND ANALYSIS...11

2.2 MARKETING PLAN..12

CHAPTER THREE

3.0ORGANIZATIONAL, MANAGEMENT & OPERATIONAL PLANS163.1 DESIGN AND DEVELOPMENT PLANS.16

3.2 MANUFACTURING AND OPERATIONAL PLANS..18

3.3 ORGANIZATIONAL AND THE MANAGEMENT TEAM.20

CHAPTER FOUR

4.0 FINANCIAL ANALYSIS..25

4.1 FINANCIAL PROJECTIONS AND PLANS

4.2 THE ECONOMICS OF BUSINESS..

4.3 PROPOSED COMPANY FINANCING


3/31

2

DEDICATION:

All this goes to my family friends and lecturers for their support, understanding and

being there for me always in every step I take in my life.


4/31

3

ACKNOWLEDGEMENT:

I wish to express my maximum gratitude to Almighty God for the good health and

strength that has brought me this far.

I wish to also express my greatest gratitude to Madam Jenffer for the advice in the

preparation of the material. His suggestions and keen interest shown during the write-up

of this project proved to be indispensable.

I would also like to thank members of the lecturing staff for the knowledge regarding this

subject especially Mr. Peter Kariuki.

Above all, special thanks to my friends for their support and knowledge that proved to be

of great importance in the preparation of this project.

To all I say Thank you.


5/31

4

BUSINESS EXECUTIVE SUMMARY

BUSINESS DESCRIPITION.

The name of the business will be Sugarland Bakery. A sole trader business, it will

be strategically located within Tudor area in Mombasa Town (Kenya) due to easy

accessibility of the place (no traffic). The business will commence its operations as from

1st

January, 2012. For it to operate effectively and efficiently, it will require equipments

such as; weighing machines, cooking ovens, cooking materials, employees, computers,

etc. Operational hours during weekdays will be from 8:00 am to 8:00 p.m.

OPPORTUNITY AND ENTRY STRATEGY.

Due to the increasing demand for bakery products, the business will provide quality

products so as to satisfy its customer. With the availability of raw materials, availability

of qualified staff members and cheap labor and good infrastructure, there will be reduced

cost of transportation of goods. The business will start on owners capital i.e. Fadia

Swaleh Saeed and alwaysbe committed to its motto: Quality comes first.

THE TARGET MARKET.

The business is targeting various groups to offer patronages to these are:

Domestic customers- the business will offer its products to the local community within

and around the area. These will vary between high and low income earners.


6/31

5

Hotels and Institutional customers in Mombasa area- it will also offer its products to

small and big hotels, restaurants, schools and colleges.

BUSINESS COMPETITIVE ADVANTAGES.

The main business competitors include

Competition will be met from various competitors within and out, but a method of

tackling them has been devised, i.e. offering lower prices, good workmanship and crucial

relationship with the general public and offering quality products and services, offering

of free samples of bakery products, maintaining good relationship with customers that

will create customer loyalty towards the business etc.

Business THE MANAGEMENT TEAM.

In the management team it will consists of one managing director who is well qualified

with pool of skills and experiences in handling all the business activities who is currently

in pursuing her bachelor business administration degree and one assistant manager. Then

managing director will always get involved directly with the day to day activities that are

taking place in the business. Followed by a receptionist, a sales executive officer,

packaging staff and an accounts clerk.


7/31

6

FINANCIAL PLAN

The business will have a starting capital of Ksh. The sponsor of the business will

contribute 100%.


8/31

7

CHAPTER ONE

1.0 BUSINESS DESCRIPPION

1.1 NATURE OF THE BUSINESS

The business will be situated at Tudor in Mombasa town. The proposed profile of the

business will be:

SUGARLAND BAKERY,TODUR AREA MOMBASA

TODUR AREA MOMBASA, 81595 (80100) Msa Kenya.

PHONE: +254700439203;EMAIL ADDRESS: [email protected]

.

It is to be owned and managed by Miss. Fadia swaleh saeed. Who will be the

managing director.

Nature of the business.

The proposed business is a sole proprietorship. The investor will be solely

responsible for the overall management.

The proprietor has chosen this business to be a sole proprietorship because

i) The owner has complete control over the business.ii) The owner enjoys profits alone.iii)It requires a low startup capital.iv)The proprietor is a well qualified individual in business activities.v) The proprietor has competent skills to carry on the business.


9/31

8

The structure of the company.

The bakery will be run by six workers. A manager who will be handling the management

of the Bakery followed by his assistant, who will assist in carrying out the duties of the

manager when she is away he/she will help in marketing, a receptionist who will deal

with customer related issues and a sales executive officer who will be controlling the

sales activities, an accounts clerk and packaging staff. The employees will be paid on a

monthly basis and bonuses will be given in case of the company makes good profits.

1.2 COMPANY DETAILS.

Mission

Sugarland Bakery's mission is to produce and market the highest quality baked goods

and continue to develop a brand name that inspires trust and quality. We will achieve this

by hiring the best people, providing quality customer care and service and giving back to

our community. We also aim to offer high quality coffee, espresso, and pastry products at

a competitive price to meet the demand and the middle- to higher-income local market

area residents.

Keys to Success

Keys to success for Sugarland Bakery will include:

1. Providing the highest quality product with personal customer service.2. Competitive pricing.

Goals/Objectives of the Business

1. Sugarland Bakerys goals are to increase the Value of the business, profitability,quality products, volume of production and promote our products better. On a day

to day basis orders are taken from the vendors. According to level of the orders,


10/31

9

the production for the day is determined. Quality control personnel will handle the

quality of products before and after baking.

2. Generating Income: This is the main factor as to why I want to start the business,I had a will to generate a lot of income and assets, and this is my driving force.

3. Offering services and products at reasonable costs: Looking at the Kenyaneconomy, we find that most of the products or rather items on the market have

had high prices, of recent so I decided to start one that is fair and reasonable

enough to all classes of people.

4. Manager of my own: As pertains lack of job security in the Kenyan market todayand frustrations in the work places, I decided to start up something, whereby I will

become a manager of my own and try out challenging ideas own my own, without

any outside interference.

5. To satisfy customers by offering standardized services and products.6. Government involvement: After the surrounding or rather the locality has sighted

my efforts and good work, the government will automatically get involved.

7. Reduce Unmployment: Securing a job is a problem nowadays, for graduates andnon-graduates have nowhere to go. The starting of my business will make me be

able to employee personnel and thus, I will have reduced unemployment.

Business Ownership

Sugarland Bakery is owned and managed by Ms. Fadia swaleh saeed.

Business location

Sugarland Bakery is located directly opposite Tudor water sports hotel on the left there

will be a small sandy road. Take this road until you spot a black wooden gate with the

sign Sugarland Bakery.


11/31

10

1.3 COMPANYS PRODUCT OR SERVICE.

Products and Services

Sugarland Bakery offers a broad range of coffee and espresso products. Sugarland

Bakery caters to all of its customers by providing each customer coffee and espresso

products made to suit the customer, down to the smallest detail. The bakery provides

freshly prepared bakery and pastry products at all times during business operations. Six to

eight moderate batches of bakery and pastry products are prepared during the day to

assure fresh baked goods are always available.

The following are our products:

Brownies

Brownies with Nuts

Cookies

Oatmeal, Peanut Butter, Sugar, Choc Chip, Choc Chunk, Oat Meal Raisin,

Macadamia Nut

Muffins

Reduced Fat Muffin, Blue Berry, Banana, Apple and Banana Nut

Cakes

Wedding Cakes, Anniversary Cakes, Graduation Cakes, Sculptured Cakes, Lemon,

Strawberry Cake.

BreadsBran Bread

Enriched Home Style White Bread

Donuts


12/31

11

Gourmet Pastries

Danish TwistPinwheel

Bow Tie

Cheese Danish

Miniature DanishDanish Coffee Ring

Lattice Danish

RollsDinner Rolls

Enriched Soft Dinner Rolls

Sandwich Rolls

Tea and coffee

Black teaNormal tea

Ice teaBlack coffee

Cappuccino coffee

1.4 OPPORTUNITY AND ENTRY STRATEGIES.

In the past decade, securing a job has been the biggest problem to graduates and non-

graduates in Kenya, given the economical and governmental reasons. One has no choice

other than exercise his skills and knowledge in whatever/whichever field.

With the vast population in the region, people have tuned to be investors and businesses,

which allow our sector to attain recognition as a key provider to jobless people. As

concerns all this I believe in three to four years, if population remains same, or increases,

I will have to increase my products and services to suit the population needs in terms of

demands, hence more personnel will be needed and the expansion of business growth and

opportunities will be needed.


13/31

12

CHAPTER TWO

2.0 COMPANY MARKETING ANALYSIS AND MARKETING PLANS

2.1 MARKET RESEARCH AND ANALYSIS

Potential customers

The business has identified the following customers:

Hotels and Institutional customersIt has identified big and small hotels and various primary and secondary schools and

colleges in the region that are interested in the products being offered.

Individual customersThere are also a large number of individuals willing to buy various products that

the business is offering.

Potential CompetitorsThe enterprise direct competitors are the following:

1. Fritto Misto Italian cafe2. Bombay Bistro bakery

Their Strengths

They offer transport services. They have advertisement services. They are all technologically advanced in terms of cooking materials. They have transport facilities e.g. vehicles.

Weaknesses

They dont offer credit facilities.


14/31

13

They have poor products. High pricing of products. Unavailability of raw materials. Poor customer services.

Company competition strategies:

In order to cope with competition, the business will need to make proper

arrangements and develop strategies for it to succeed. Therefore, it will take

advantage over the competitorsweaknesses by offering services that they dont

give like customer services:

High quality customer services: The Company will ensure customers are servedto the best quality and customer complaints and issues will be taken into serious

accounts.

Transport facilities: Those who purchase in large quantities will be providedwith free transport and the rest will be charged a small price.

Discounts: The business will offer discounts to its customers to motivate them. Credits facilities: Credit facilities will be offered to customers who make large

purchases and consistent.

Security: The business will be responsible for customers security only withinthe premises.

Market size and Market share.

The enterprise is situated in a population of approximately 25,000 people. It will

target a share of about 40% of the population. The share put down into figures show the

results below:

40\100*15,000= 6,000 people


15/31

14

2.2 MARKETING PLAN OF THE COMPANY.

After marketing Study it was concluded that a key way we will reach our market is

through our excellent qualified employees and company location that is our strongest

advantage. We will build on the customers by providing high quality based products and

best customer services.

We intend to become a recognized and active participant in Mombasa. We will build on

this by creating awareness to our customers about our products through advertising,

giving discounts and providing after sales services. Beyond transacting with our clients

we will also build on customer relationship to maintain our new and old customers for

business growth.

Marketing objectives:

To sell products and earn profit. To expand our business outside Mombasa area i.e. in all other parts of Kenya. To become a leading bakery business in Mombasa town. To create exchanges that satisfies individual and business goals. Identify new ways of producing variety of products to our customers at low

prices.

Expansion of relationship with existing customers


16/31

15

Marketing Strategy

The four P`s that is the place, product, price and promotion will be used to let people

know that were have products and services they need, we are selling them and delivering

the products to them.

Pricing Strategy

Pricing strategy will be determined by cost of production; thus, pricing is

important since it determines the future state of any business. In formulating the pricing

strategy the business will consider the following,

i) Government policy. i.e. payment of business license and other tax charges.ii) Economic climate. Here it is referred in terms of season. E.g. in what time

particular will the company offer high production and sales to its customers.

iii)Competitors prices. Our price will be totally differentiated from that of ourcompetitors through offering cheap affordable and reasonable prices.

iv)Demand. As soon as the consumer demand increases for our products, thecompany will try to expand its structure through growth.

The pricing structure

The following table will be recommended for charges of various products:

ITEM QUANTITY PRICE SHS CTS

Cakes 1 kg 1000 00

Chocolate cakes 1 kg 2000 00

Muffins 1 kg 550 00


17/31

16

Brownies 1 kg 450 00

Breads Each 35 00

Coffee Per cup 60 00

Rolls 1 kg 200 00

Pastries 1 kg 500 00

Cookies 1 kg 500 00

Company Market Segmentation.

Segmentation divides a market into groups, in order to know the targeted customers the

company must segment the market population.

Ways that the company will segment the market include:

a) Demographic Segmentation: In this segmentation the targeted groups are based onthe age and income level. Our company will target age of 4years-40years and an

income level of at least 15,000 ksh per month.

b) Geographical segmentation: This method divides people or businesses into regional

groups according to their location. This type of segmentation is important for the

businesses because our products and services are addressing to our local surrounding

in Mombasa town.

Sales Tactics

Salesmen will inform customers about our products and services. In addition, receipt

bearing a logo and name of the business will be issued to customers upon buying

products to get the business name out. A suggestion box will be placed at the entrance of

the premises for patrons to put their views and opinions which will be taken into serious

consideration and as a challenge to increase company sales.


18/31

17

Company Advertisements and Promotions.

Advertisements and promotionare tools of success that will help in creating

company awareness and promote company products. They will enable the customers to

know about the products and services being offered in our firm.

Advertisements

Advertisements will be done through various methods, such as:

i) Sign post: They will be put at strategic locations to direct clients to thebusiness premises.

ii) Calendars: The business will make itself known and attract more customersby giving customers calendars bearing its name and logo.

iii) Posters and brochures: Posters will be colorfully designed to be attractiveand eye catching showing the business details and placed at various strategic

positions to advertise the products.

Company Promotion activities.

Business promotion will be done through:

Exhibition: Old and newly acquired products will be put in an organized room atleast twice a month to inform clients about the existence of various products.

Trade shows: Sales and marketing personnel will occasionally organize specificdates when they will display products to clients through trade shows hence

motivating them.

Make personal visits to various schools and institutions etc. Offer free sample of new cakes designed in small quantities every one week.


19/31

18

Company Distribution Plan.

As concerns distribution, products and services will be directly offered from the Bakery

where we sell directly to the consumers who come to buy products from the bakery.

CHAPTER THREE

3.0ORGANIZATIONAL, MANAGEMENT, OPERATIONAL PLANS

3.1 DESIGN AND DEVELOPMENT PLANS

Development Status and Tasks

Product Development.

Creating new products with consumer demands in mind. Training chefs that feel a lack of education in the pastry arena and are looking for

comfort level.

Designing new lower fat, healthier products to meet the demands of today's market. Defining an image. Targeting companys market and identifying the customer in meeting their demands

with company products.

Product improvements.

Modern technology has led to increasingly large and more sophisticated production

operations, which in turn have created excess production capacity in many parts of thecountry. At the same time, road and rail improvements have increased distribution

capability. Finally, efficient new packaging systems and materials have greatly extended

the "shelf life" of many bakery products.

Niche Marketing

Training staff to handle product timing and ingredient and production controls.


20/31

19

Solving product formulation problems that deal with the need for flavorenhancement, handling ability in production, profitability or longer shelf life.

New products.

Sugarland Bakerys future expansion efforts will focus upon providing full-scale

catering for the neighboring hotels and restaurants, hamburger buns, hot dog rolls and

pizza.

Design and Development costs.

The costs for our products will be on daily basis as follows:

200 loaves of bread- 7,000 /=

50 cups of coffee- 3000 /=

300 pieces of pastries- 20000 /=

100 of both rolls and muffins- 6000 /=

As we offer a variety of cakes, we will bake them depending on the orders that will getfrom our customers on daily basis.


21/31

20

Proprietary Issues

The logo for Sugarland Bakery is as shown below


22/31

21

Risk Management

The business will put in place various risk management activities so as to maintain a

competitive edge for instance: regular advertisements, provision of quality products as

well as keeping in touch with the current technological trends, employment of qualified

staff and finally maintaining a strong relationship with the clients.

3.2 MANUFACTURING AND OPERATIONAL PLANS

Geographical Location

Sugarland Bakery will be located in Tudor for the following reasons:

1) The location favors every room of expansion, since there is enough land available.2) The location has well piped water and electricity and telephone lines.3) The place has a police post just around thus making security awareness, which

reduces crime rate.

4) I also chose the site because of the population of the region, which is dense hence, theneed for a bakery firm.


23/31

22

Company Facilities and Capacity Improvements.

Main production line equipments:

i. Spiral mixer (for breads and biscuits)- 2000 /=ii. Planetary mixer (for cakes and pastries)- 3500 /=

iii. Baking ovens- 50000 /=iv. Baking pans- 10000 /=v. Slicer- 5000 /=

vi. Trays and moulds- 5000 /=vii. Egg beater- 4500 /=

viii. Proof boxes- 15000 /=

The total will be 95,000 Kshs in total.

Main Office Equipments Required

i. Office furniture Desk- 60000 /=ii. Chairs- 45000 /=

iii. Computers- 55000 /=

The total of this is 160,000 Kshs.


24/31

23

Strategy and plans

The key strategy is on the material availability and marketing of the products for

our bakery which include;

Raw material availability

All important raw materials will be wheat flour, sugar, eggs and ghee

for which proper arrangements should be made. Other items like milk

powder, yeast, salt, assorted fruits, baking powder, caramel colour, vanilla,

butter cream, etc. shall be required in small quantities.


25/31

24

3.3 ORGANIZATIONAL AND THE MANAGEMENT TEAM

Fadia Swaleh SaeedThe Manager

Swalha Abdulrahman

Asstnt Manager

Husna Faiz

Receptionist

Antony Makau Maimuna Wazir Sukaina Alwy

Sales Executive Officer Packaging Staff Account clerk


26/31

25

Managing Director

Fadia swaleh saeed the proprietor will be the managing director- who currently in pursuit

of her Degree in Business Administration from St. Pauls University. She has more than

four years of experience as a small business owner and currently works as an individual

baker. Her passionate interest in the business, skills and experiences will lead to rapid

business growth.

Duties and responsibilities

i) Decision makingii) Employing new staffiii)Delegating duties to other staffiv)Motivating the employeesv) Coordinating and directing all business employees

Assistant Manager

Swalha Abdulrahman -has a Diploma in Business Management from institute

of advanced and technology. She has 2 years of working experience at

Tarboush Hotel makadara in Mombasa as an assistant manager.


i) To supervise the duties of other staffii) He or she will be in charge of the business in absence of the Manageriii)To monitor behaviors of the junior staff


27/31

26

Receptionist

i) Husna Faiz-has more than 3 years of experience, working with PatelCommunication. She is a success driven person with high level of integrity.

i) Receive and greet customers.ii) Receive emails (documents, correspondence, query etc.)iii)Attend phone calls.iv)Received delivered materials. (Inspection and count the quantity)v) Received invoices and arranged documentations for the paymentsvi)Purchased office materials and few materials required in officevii)Prepared, filed, and taken actions for significant documents we received from

different view of works.

viii) Checked time sheets of employeesix)Updated memorandums and receivables through server

Sales Executive Officer

Antony Makau-has more than 5 years of supervisory experience as a sale

representative.


i) Maintaining the sales officeii) Controlling the sales activitiesiii)Securing orders for the productsiv)Studying market conditionsv) Training the sale force

Packaging staff

Maimuna Wazir hasat least a form 4 certificate and is ready to work under supervisionfor better business performance.


i) Packing productsii) Weighing productsiii)Sealing all packed products


28/31

27

iv)Loading and off loadingv) Maintaining cleanliness in the premise

Accounts clerk

Sukaina Alwyhas a 2 year working experience in accounting and she is a Diploma

holder in Accounting with certified public accounts, and a computer literate.

Duties and responsibility

Book keeping Advising the management on financial status of the business Calculate the profit or loss the business makes every day and forward to the manager.

Company Personnel Plan.

Just like any other business, employees will be receiving their salary at the end of

the month.

Table: Salary Structure

Employees

no.

Employee

Title

Number

of Staff

Employee

department

Reporting

Chains

Monthly

payment

1. Managing

Director

1 Top

Management

Top

Management

2,0000

2. Assistant

Manager

1 Top

Management

Top

Management

15,000

3. Receptionist 1 Middle

Management

Middle

Management

11,000


29/31

28

4. Sales

Executive

Officer

1 Sales and

Marketing

(S&M)

Top

Management

9,000

5. Accounts

clerk

1 Accounts Top

Management

9,000

6. Packaging

Staff

1 General Staff S&M 6,000

TOTAL 6 70,000

The salary of the employees will be based on the following factors.

Kind of the job: If the job is time consuming and requires hard work, theremuneration will be high and if the job is simple and needs little effort, payment

will be reasonable.

Financial capacity of the firm: The remuneration plan will be planned in such waythat it does not become a burden to the firm.

Industry skill: The salary will vary from the industry skill. The more the skills inbusiness operations, the more the salary.

Company Legal Requirements.

For Sugarland Bakery to operate, it will need the following legal requirements as

expected by the Kenyan law;

Registration: It's an act of parliament making provision for the registration of asole proprietorship.

Trading license: The business will get the trading license from Mombasa, CountyCouncil as a single business permit.

Taxes and statutory deductions: The business will register with the relevantauthority that is Kenya Revenue Authority (KRA) for trading tax deductions

schedules and assignment of business pin.

Medicals permit as the intended business deals with food stuff.


30/31

29

Other requirements

Insurance services: The business will be insured against theft, fire and accidents.There will be a payment as the premium.

Banking services: The business will need both current and savings account forbusiness operations.

CHAPTER FOUR

4.0FINANCIAL ANALYSIS AND PLAN

4.1 FINACIAL PROJECTIONS AND PLANS.

Sales and revenue forecast for 3 years.

Products sales year 1 year 2 year 3

Brownies 100,000kshs 150,000kshs 200,000kshs

Cookies 100,000kshs 150,000kshs 200,000kshs

Muffins 150,000kshs 200,000kshs 250,000kshs

Cakes 200,000kshs 250,000kshs 300,000kshs

Breads 200,000kshs 250,000kshs 300,000kshs

Gourmet pastries 100,000kshs 150,000kshs 200,000kshs

Rolls 100,000kshs 150,000kshs 200,000kshs

Tea and coffee 150,000kshs 200,000kshs 250,000kshs


31/31

ayushi patel

Documents