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:

TABLE OF CONTENTS DEDICATION2 ACKNOWLEDGEMENT...3 EXECUTIVE SUMMARY.5 CHAPTER ONE 1.0 BUSINESS DESCRIPTION.6 1.1 THE NATURE 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 3.0 ORGANIZATIONAL, MANAGEMENT & OPERATIONAL PLANS16 3.1 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

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.

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.

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 always be 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.

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.

FINANCIAL PLAN The business will have a starting capital of Ksh. The sponsor of the business will contribute 100%.

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: ministarz_gurl@hotmail.com . 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.

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, 8

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 Kenyan economy, 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 today and 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 and non-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.

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. Breads Bran Bread Enriched Home Style White Bread Donuts

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Gourmet Pastries Danish Twist Pinwheel Bow Tie Cheese Danish Miniature Danish Danish Coffee Ring Lattice Danish Rolls Dinner Rolls Enriched Soft Dinner Rolls Sandwich Rolls Tea and coffee Black tea Normal tea Ice tea Black coffee Cappuccino coffee 1.4 OPPORTUNITY AND ENTRY STRATEGIES.

In the past decade, securing a job has been the biggest problem to graduates and nongraduates 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.

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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 customers

It 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 customers There are also a large number of individuals willing to buy various products that the business is offering. Potential Competitors The enterprise direct competitors are the following: 1. Fritto Misto Italian cafe 2. 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.

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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 competitors weaknesses by offering services that they dont give like customer services: High quality customer services: The Company will ensure customers are served to the best quality and customer complaints and issues will be taken into serious accounts. Transport facilities: Those who purchase in large quantities will be provided with 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 within the 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

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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

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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 our competitors through offering cheap affordable and reasonable prices. iv) Demand. As soon as the consumer demand increases for our products, the company will try to expand its structure through growth.

The pricing structure

The following table will be recommended for charges of various products: ITEM Cakes Chocolate cakes Muffins QUANTITY 1 kg 1 kg 1 kg PRICE SHS 1000 2000 550 CTS 00 00 00

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Brownies Breads Coffee Rolls Pastries Cookies

1 kg Each Per cup 1 kg 1 kg 1 kg

450 35 60 200 500 500

00 00 00 00 00 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 on the 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.

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Company Advertisements and Promotions.

Advertisements and promotion are 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 the business premises. ii) Calendars: The business will make itself known and attract more customers by giving customers calendars bearing its name and logo. iii) Posters and brochures: Posters will be colorfully designed to be attractive and 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 at least twice a month to inform clients about the existence of various products. Trade shows: Sales and marketing personnel will occasionally organize specific dates 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.

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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

3.0 ORGANIZATIONAL, 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 the country. 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. 18

Solving product formulation problems that deal with the need for flavor enhancement, 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 get from our customers on daily basis.

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Proprietary Issues The logo for Sugarland Bakery is as shown below

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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, the
need for a bakery firm.

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Company Facilities and Capacity Improvements.

Main production line equipments: i. ii. iii. iv. v. vi. vii. viii. Spiral mixer (for breads and biscuits)- 2000 /= Planetary mixer (for cakes and pastries)- 3500 /= Baking ovens- 50000 /= Baking pans- 10000 /= Slicer- 5000 /= Trays and moulds- 5000 /= Egg beater- 4500 /= Proof boxes- 15000 /=

The total will be 95,000 Kshs in total.

Main Office Equipments Required i. ii. iii. Office furniture Desk- 60000 /= Chairs- 45000 /= Computers- 55000 /=

The total of this is 160,000 Kshs.

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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.

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3.3 ORGANIZATIONAL AND THE MANAGEMENT TEAM

Fadia Swaleh Saeed The Manager

Swalha Abdulrahman Asstnt Manager

Husna Faiz Receptionist

Antony Makau Sales Executive Officer

Maimuna Wazir Packaging Staff

Sukaina Alwy Account clerk

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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 making ii) Employing new staff iii) Delegating duties to other staff iv) Motivating the employees v) 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.

Duties and responsibilities i) To supervise the duties of other staff ii) He or she will be in charge of the business in absence of the Manager iii) To monitor behaviors of the junior staff

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Receptionist i) Husna Faiz- has more than 3 years of experience, working with Patel Communication. 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 payments vi) Purchased office materials and few materials required in office vii) Prepared, filed, and taken actions for significant documents we received from different view of works. viii) Checked time sheets of employees

ix) Updated memorandums and receivables through server Sales Executive Officer Antony Makau- has more than 5 years of supervisory experience as a sale representative. Duties and responsibilities i) Maintaining the sales office ii) Controlling the sales activities iii) Securing orders for the products iv) Studying market conditions v) Training the sale force Packaging staff

Maimuna Wazir has at least a form 4 certificate and is ready to work under supervision for better business performance. Duties and responsibilities i) Packing products ii) Weighing products iii) Sealing all packed products 26

iv) Loading and off loading v) Maintaining cleanliness in the premise

Accounts clerk Sukaina Alwy has 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 Employee no. 1. Title Managing Director 2. Assistant Manager 3. Receptionist 1 1 Number of Staff 1 Employee department Top Management Top Management Middle Management Reporting Chains Top Management Top Management Middle Management 11,000 15,000 Monthly payment 2,0000

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4.

Sales Executive Officer

Sales and Marketing (S&M)

Top Management

9,000

5.

Accounts clerk

Accounts

Top Management

9,000

6.

Packaging Staff TOTAL

General Staff

S&M

6,000

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, the remuneration 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 way that it does not become a burden to the firm. Industry skill: The salary will vary from the industry skill. The more the skills in business 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 a sole proprietorship. Trading license: The business will get the trading license from Mombasa, County Council as a single business permit. Taxes and statutory deductions: The business will register with the relevant authority 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.

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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 for business operations.

CHAPTER FOUR
4.0 FINANCIAL ANALYSIS AND PLAN

4.1 FINACIAL PROJECTIONS AND PLANS.

Sales and revenue forecast for 3 years.

Products sales Brownies Cookies Muffins Cakes Breads Gourmet pastries Rolls Tea and coffee

year 1 100,000kshs 100,000kshs 150,000kshs 200,000kshs 200,000kshs 100,000kshs 100,000kshs 150,000kshs

year 2 150,000kshs 150,000kshs 200,000kshs 250,000kshs 250,000kshs 150,000kshs 150,000kshs 200,000kshs

year 3 200,000kshs 200,000kshs 250,000kshs 300,000kshs 300,000kshs 200,000kshs 200,000kshs 250,000kshs

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