EXCECTIVE SUMMARY

CHAPTER ONE
The business has been given the name SAMCOM SATELITES and it will be a self-proprietor kind of business operating under the owner, Mr. Samuel Gare. The business is strategically located along a highway Nairobi Mombasa. The business will majorly deal with assembling of satellite dishes to its customers and its minor deals will be on installations, selling of telecommunication facilities and its repair. With respect of chapter one it covers; Business name, Business location and Address form of business ownership, type of business, products and services the business offers, justification of the business opportunity, the industry, the objectives of the business and entry and strategy.

CHAPTER TWO
Samcom satellite targets the individual clients, the institutional clients and the pass by clients who will ensure great technology in the upcoming developments in that area. The business has also plans to employ highly qualified personnel so as to manage and cope with stiff competition around that area. The proprietor has also identified his competitors weaknesses which are a great advantage to business as it starts.

CHAPTER THREE
Samcom satellite will be managed by an individual and support staff who will add up to a total of seven workers. This hierarchical flow is from the manager to the subordinate. Each employee is entitled to specialization with expectation from the technicians. The business will be ready to work hard and ensure the business goes smoothly so as to produce high and effective output in terms of profit, good quality to customers being satisfied fully by the services and goods offered by the business itself.

CHAPTER FOUR
The entrepreneur has planned to purchases the starting items worth Kshs. 150,000 and the premise will cost Kshs. 4,000 per month, with repairs done annually on the premise which will carry out maintenances facilities daily and minor installations including booster, base stations and satellites installation. The total cost of production will be Kshs. 118,500. The initial rules and regulations within the business must also be adhered to and the employees will also enjoy certain remunerations. The business will start operating at exactly 8:00am to 5:00pm on weekdays and on weekends from 9:00am to 12:00pm. And any overtime done the business will pay at Kshs. 400 per hour.

CHAPTER FIVE
The manager will be in charge of all programs. The initial capital proposed by the entrepreneur is Kshs. 500,000 out of which quarter will come from friends and family members and the rest from bank loans half of the same will come from the banks, i.e. 250,000 Kshs from Equity bank, 50,000 Kshs from family members and the remaining 20,000 Kshs from saving

CHAPTER ONE
1.0 BUSINESS DESCRIPTION
The business has been given the name SAMCOM SATELITES and it will be a self-proprietor kind of business operating under the owner Mr. Samuel Gare. The business is strategically positioned along Mombasa road highway in Nairobi. The business will majorly deal with assembling of satellite dishes and minor will be on installation plus selling of telecommunication gadgets.

1.1 BUSINESS NAME

The proposed name will be SAMCOM SATELLITES and it was formed by merging the proprietors name that is SAMUEL GARE and COM meaning communications. The proprietor chose the name due to its ease in pronunciation and memorization which enables the interested parties to get used to it and hence enhancing its market. The name indicates the business will be dealing with satellite technology and telecommunication gadgets thus the proprietor came up with the business to equip the society and improve the telecommunication sector in that area hence educating the community at large.

1.2 BUSINESS LOCATION AND ADDRESS

The proposed business will be located in Nairobi County whereby the premises will be situated at Katra building ground floor left
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wing. The building is located near the kenol/kobil petrol station and opposite the premises there is standard bank across also there is a chain cyber which is located near the business thus

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Making potential customers to the business. The area is well networked in terms of communication and transport services due to the growth and expansion in that area, the population is relatively high hence getting market opportunities, therefore SAMCOM SATELLITES would have several advantages that include;

ACCESSIBILITY:

Since the business will be situated in mostly dense population area therefore good transport network due to the highway thus favoring the business to run smoothly its operations and fast.

MARKET:

Due to the high population in the area, demand for the business products is high in that in urban areas there is a high demand of the latest technology like satellite dishes due to high income status of people in that area which enables them to afford latest technology which makes their lifestyle comfortable thus an added advantage and surety of the market demand to the business.

1.3 FORM OF BUSINESS OWNERSHIP

The business will be registered under sole proprietorship with SAMUEL GARE as the sole proprietor. The major core reasons for choosing this type of business ownership is as follows;

MAXIMIZATION OF PROFIT

Since the business will be a sole proprietorship, the proprietor will have to enjoy all the profits alone depending on his own decisions either to expand the business or shift it to a better level of service delivery hence maximization of the same.

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SELF EMPLOYMENT
Due to diversity of job opportunities, the proposed will create a ready-made job opportunities to the few that will be employed including the proprietor himself thus avoiding poverty in the area thus increasing living standards.

EASY DECISION MAKING

Since the business is a sole proprietorship, the proprietor will be the one to make the decisions either to expand the business or shift to a better business depending on the demand and the nature of the business trend flexibility which the proprietor will be the overall decision maker by doing this the proprietor would have saved time.

FLEXIBILITY IN THE BUSINESS

Due to the changing in technology, SAMCOM SATELITES will be flexible in nature since the percentage capital contribution will be as follows: ITEM Personal Savings Family and Friends Long term Loans AMOUNT (KSHS.) 200,000 50,000 200,000 PERCENTAGE (%) 40% 10% 40%
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Short term Loans Total

50,000 500,000

10% 100%

3 When presented in a pie chart, the percentage will be as follows:

P ersonal S aving s F ily and am F riends L ongterm L oans S hort term L oans

1.4 TYPE OF BUSINESS

SAMCOM SATELITES will be a service industry in telecommunication industry that will deal with the assembling of the satellite dishes as its major activity and installing the same to their customers at an affordable fee. The satellites dishes will be supplied from Nairobi mechatronics, a firm dealing with distribution of uninstalled satellite dishes. The supply is normally in wholesale terms but SAMCOM SATELLITES will be in the
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retailing term assembling and reaching to the customers thereby offering the installation to the identified customers hence in better marketing of the upcoming sole proprietorship business. The technology changes with time as the proprietor.

1.5 PRODUCT/SERVICE
The business will mainly carry out the satellite dishes assembling i.e. it purchases the satellite dishes, assemble them to customers and the minor activity will be to install the dishes to the interested customers i.e. depending on the customers choice. A dish is a type of parabolic antennae designed to receive microwaves from communication satellites which transmit data transmission or broadcasts as satellite televisions. There are many types of satellite dishes but due to the cost of operation, SAMCOM SATELLITES will be dealing with the one major type i.e. very small aperture terminal (V.S.A.T) type which provides the way satellites internet for communications for both consumers and private network for organizations. It offers a greater performance at a lower cost, antennae whose size will vary from 74cm to 120cm and to be installed at a height of 2m above the ground for great reception. Customers will get information relating to the dishes and its operation before they purchase by doing this it will enable a great deal to customers and also be able to choose their preferences comfortably which brings a close relationship between the customers and the business. The consumer service will be better compared to other competitors
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due to closeness and better service delivery that involves information about the operation of the device in which the business will offer a one year guarantee of which consumers are confidence in the business products and also provide after sales service i.e. free delivery etc.

1.6 JUSTIFICATION OF BUSINESS OPPORTUNITY

The business is viable in that the location chosen for the business consist of potential customers and thus providing the proprietor with sufficient market and potentiality for the business which will benefit the community as follows; EMPLOYMENT OPPORTUNITES The business will employ several qualified persons to play various roles in the business; this creates employment thus increasing living standards

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PROVISION OF GOODS AND SERVICES Since the business will be assembling and selling of dishes to the people and other interested parties, the services of installation can also be done at an affordable fee that enables the interested parties to get an advantage over the competitors. PROMOTION OF LATEST TECHNOLOGY Since the satellite dishes has good reception due to their latest technology which keeps people updated and also acts as a source of entertainment. ECONOMIC GROWTH As a result of payment of taxes and creation of employment the business will contribute to the growth of the economy in the country due to revenue generated which will be used to develop the community through road maintenance, schools etc.

1.7 INDUSTRY
The business will be a service provision business of a medium size that concerns with the assembling of satellites and selling. The installing is also done but it is optional depending on agreement with the customer. The business will be using modem technology i.e. the recent operation since its simple and flexible that is it can be shifted to any upcoming technology because its cheap compared to emerging technologies. The business will have five employees who will include the overall manager, technicians, sales officer and supervisor. The business will require about Kshs. 500,000 in capital to fully run its operation , this will come from borrowed savings and loans from Equity bank since the business deals with latest technology and it will have several competitors that have slightly higher level of sales and operation power.

1.8 OBJECTIVES OF THE BUSINESS

SHORT TERM GOALS Increase working capital The proprietor will expand the business service due to the growing population depending on the profits gained from the sales and service delivery provided by the business to its customers. Repayment of bank loan The proprietor expects to have increased his earnings and expects to have paid back the borrowed loan and operating In enough capital reserves, this will keep the prosperity of the business hope and on track.
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 Training The proprietor intends to attain a certificate in business management from a nearby institution as a part time course, this will depend on the sales cost and the profit incurred, this will enable the proprietor to attain knowledge on the management of the business in future.

LONG TERM GOALS Expand the business Due to the demand by customers which leads to increase in sales, the proprietor intends to expand the business and open another branch in a nearby area depending majorly on the amount of capital work.

7 Creation of employment The proprietor intends to increase the number of employees in the firm as the business grows with time; this will benefit the entire community hence better service delivery. Advertisement and sale of shares The business wills in future sale its shares to interested parties which will enable generation of enough working capital hence easy expansion of the business.

1.9 ENTRY AND GROWTH

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ENTRY
The business will be starting on January 2013. Since the business is still new so it has its own advantages in that it will experience less competition however it will be difficult to market it and make the interested parties attracted though its also in a better state cause the technology in use is the most recent in the market therefore the business plans to offer incentives and after sales service that will attract more customers.

PRICING
Since the business is still in its early stage, prices of satellites dishes assembled plus the decoders will be at an affordable price thus marketing products in convincing way to customers to the business.

ADVERTISING
Since the business is still young it will start by advertising through use of posters and free handouts to let people get the knowledge and existence of the business and its services and as the business grows it will use modern digital advertising. 8

DISTRIBUTION
This will be done from the business directly to the consumers thus eliminating middlemen who take advantage on hike of cost hence scaring away customers from the business.

MARKET SURVEY
The business will also do survey in order to discuss the market trends during its entry and it will enable the business get knowledge on what kind of services customers need and if there is competition the business will do its best to emerge at the and be the best.
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GROWTH
The business anticipates making profit and growing broadly by exhausting the following opportunities fully so as to grow;

Market is at strategic position since it is located in an area where market is ready so an advantage to the business. The business will be planning to open a new branch near to customer residence and expand its service delivery and goods thus creating close relationship with customers.

CHAPTER TWO
2.0 MARKETING PLAN
For good business marketing, customers need to be retained and motivated in a great manner so as to achieve knowledge about the business and its goods and services. The proprietor had to conduct intensively on good survey of the market for prosperity and development of the business.

2.1 POTENTIAL CUSTOMERS

There are various customers located within SAMCOM SATELLITES; it will be an added advantage to the business due to the variety of the customers around the business premises thus readily
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available market for its goods and services since the business has efficient and improved technology which are advanced with new up coming technology therefore the demand will rise due to its cheap and attracting means to its customers.
Table no. 2.2.1

DETAILS
1. Individual 2. Institution 3. Parastatals

NUMBER
Katra electronics, panari hotel, Ronny toys. Railway institute, C.I.D training, Hill school etc. Zain works, Kenya Airways, Kenya Revenue etc.

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2.1.1 INDIVIUAL CUSTOMERS

The premise is surrounded by quite a number of individual customers at age bracket of 20- 35 years. Indicating that the youth are the potential customers due to the exposure to upcoming technology era which most of them have completed their o- level education therefore potential customers are employed and hence adding income which is 40% - 50%. The research conducted by the owner showed that purchasing power relies on the effort of the customers and hence the individual targeted are the most potential ones who will get incentives at the vicinity of the premise
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 comfort
The business will be offering great comfort whereby quick services will be offered at the same time being advised at their own comfort at the waiting lounge and services offered to them should be compatible to their daily life. Durability SAMCOM SATELITES will be able to provide genuine products to their customers which will win their confidence in the business that will reduce expenses due to faulty products. Durable goods will bring back potential customers for more goods and also put good word to others about the quality of the goods offered by the business thus a way of advertising the business.

2.1.2 INSTITUTION CUSTOMERS

The business is surrounded by quite a number of institutions including an Engineering Technical institute, an interlope C.I.D training that keeps watch to security as a secondary school, that will keep running the business whereby the technical institute will keep purchasing gadgets for learning and also provide work for our technicians in repairing and maintance or even advice on gadgets and equipment. 11 The interpole C.I.D training institute will also provide network basing for the business as they keep watch using the updated technology which SAMCOM SATELLITE offers.

2.1.3 PARASTATAL CUSTOMERS

Airtel company customers care branch is located near the business which is an advantage to the business as they seek help to Airtel customer care and in the same way the business will get
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advice on the latest technology and the machines they were greatly treasure, the avails important customers to the business. To the far end Kenya Airways is located near to the business; it will greatly impact the business since travellers to the country will be able to get informed with advertisement which the business relays so as to know what kind of entertainment they want in a new environment. Therefore, it creates a ready market for the business thus SAMCOM SATELITE grows. Generally, the market size of the business sis large since the firm deals with much updated technology therefore competition is less more likely to come to more dealers developing interests on the field. The expected units of the sales and service costs are as follows;

DETAILS Satellite dish Decoders

QUANTIY 12 12

PRICE PER UNIT 4500 3000 1200

COST PER DAY 54000 36000 12000

COST PER MONTH 1620000 1080000 360000

Installatio 12 n& Repair TOTAL 34

8700

10200

3060000

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2.2 COMPETITION
The proprietor is expected to face stiff competition from other enterprises that already exist in the market area, the enterprise include; NAME LOCATION
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DISTANCE

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KATRA ELECTRONICS SONY ELECTRONICS

Town center Around the area 1.5

0.5

DIGITEX COMMUNUCATION Near the town 2.0 KENCOM SERVICES Away from town 3.0

2.2.1 LOCATION
Due to the location of the competitors in the market span, it has the following advantages and disadvantages in relating to SAMCOM SATELLITE. ADVANTAGE OF LOCATING NEAR CUSTOMERS. Easy to reach or access to the customers

Expenses are reduced I.e. transport costs

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DISADVANTAGES OF LOCATING NEAR CUSTOMERS. Insecurity around the business is increased.

 The competitors have several advantages and weakness as follows.

Katra Electronics Advantage The business deals with selling of communication gadgets only. Its service delivery to customers is low and poor because public opinion demand that their services are not satisfying hence, costing them in their near future.

Sony Electronics Advantage

The business was the first in the market therefore it has established permanent customers. Also, it has several branches in the area and this maintains the preference by the customers. Due to that, it has has large working capital that run the business.

Digitex communication advantages The business has already acquired customers, opened several branches and it offers goods on credit to its potential customers. In addition to its good services to customers, it also offers after sale services at negotiable prices. Digitex communication weakness

The business opens late, and can sometimes be nonoperational for several days. This makes it unreliable to the customer and hence can easily loose due to that effect.

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Kencom service advantages.

It operates in large amounts which make it realize more profits since it has potential customers and also offers repairing services and opens on a daily basis, which portrays hospitality to customers.

Kencom services weakness. Since its far from SAMCOM region, this limits the customers as compared to the other goods and services being offered by SAMCOM SATELLITE which is not near them. The advantage of Samcom satellite is that it has a smaller asset value but greatly utilized which makes it better as compared to other competitors. The sales volume of the business is larger whereby it offers different brands I.e. the dishes and decoders are on high demand due to its latest modern technology in education and entertainment. The numbers of employees are few but more qualified in SAMCOM satellites hence provide better services and also leads to less expenses compared to companies like Karta electronics Since SAMCOM SATELLITE is still growing it has less brands but given time it will develop and enlarge its goods and services by opening branches in different areas if does well in the market, The table below shows comparison between the business and its competitors in terms of performance, quality, and reputation and after sales services.

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SERVICES PERFORMANC E QUALITY REPUTATION AFTER SALE SERVICE KATRA 3 4 4 1 SONY 2 5 5 3 DIGITEX 4 3 3 5 KENCOM 5 2 2 1

KEY:
1 Very low 2 low 3 modera te 4 High 5 Very high

SAMCOM SATELLITE will have the advantage in that its performance will be high due to the qualified personnel who have motivation towards the business in its growth.

2.3 MARKET SHARE

The business is expected to serve an area of about 100km and it will be achieved by getting 15 customers daily, the area covered is along a busy highway connecting towns from the capital city thus the business has a good market share. The business will offer after sales service which will ensure its goods demands at 15% due to stiff competition.
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2.4 PRICING STRATEGY

The methods of pricing the products and services of commodities vary depending on the quality of goods i.e. the larger the satellite dish the higher the cost and vice versa. The services offered to the customers depends on the place of installation and the adjustments depending on the consumer capability .The decoder price depends on the on the date of manufacture and the brand, the business will be dealing with four different brands i.e. Orion, wega, alpine and Kenwood. The following will be considered; Selling price The selling price per unit ( wholesale price + transport) 15% and 25% where 15% will be charged for value added tax and 25% will be the proprietor profit margin be calculated as the selling price , the total cost plus expenses incurred during daily production will be achieved by the formula [profit + total cost expenses incurred ]where expenses will product cost. Competitors price Due to the success of the business in the future and attraction of more customers the business will lower its prices compared to competitors so as to achieve more and grow effectively. Value added tax (VAT) will be levied according to VAT act meaning prices will be inclusive of value added tax. Government price The business will ensure that the price set by the government is not exceeded thus enabling setting of price on product.

17 Cost of expenses This will include expenses like transport cost, amount of labour employed, material used and service aid maintenance. VAT act will have 15% tax levied on the products making selling price of service offered be as follows; SERVICE Installation and setting of dish outside the area COST PRICE 50,000

Installation and setting of dish within the area 35,000 Repairing and setting of decoders TOTAL 5,000 90,000

2.5 SALES TACTICS

As the business progresses increasing customers and growing effectively by utilizing its resources fully to earn profit and emerging successful by exploring the following tactics fully Direct selling In order for the business to maintain excellent relations with its customers the proprietor will have to venture in direct selling thus making contact with the customer this can be achieved by having promotions, by touring in shows and exhibitions which will add knowledge on how the market is. Discounts Attracts customers and make them regular customers to the business and it will be done by offering potential customers 10% of goods purchased worth 20,000 Kshs and above.
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18 Agents The business will employ agents whose job will be looking for market for the products this will capture customers who are always busy and have no time looking for services that the business offer but the business gets their attention by use of agents who will be paid through commission. Recruitment of sales force This will ensure good marketing skills and perfect advertisement to boost the business sales thus the business generating profit and expanding. The effectiveness of the sales force motivation will get wages which will be added on their salaries. The sales targets which Samcom satellite desire to achieve is shown below;
SERVICE Dish installing JAN 1000 0 6000 0 2000 0 1400 0 1040 00 FEB 1200 MAR 1500 0 6000 0 1500 0 2200 0 1050 00 APR 2500 0 3500 0 2400 0 1500 0 1060 00 MAY 4900 0 2000 0 4200 0 1500 0 1260 00 JUN 3500 0 3500 0 4300 0 3400 0 1400 00 JULY 3700 0 1500 0 2200 0 2400 0 220 00 AUG 1500 0 2700 0 4000 0 3500 0 1170 00 SEP 1400 0 4500 0 3500 0 4200 0 1360 00 OCT 1600 0 2200 0 7000 0 3500 0 1430 00 NOV 2400 0 1800 0 3000 0 2600 0 980 00 DEC 2000 0 1900 0 2500 0 4400 0 1080 00 TOTALS 272,000

Sell of dishes

5000 0 3000 0 1500 0 1070 00

396,000

Sell of decoders After sale service TOTALS

426,000

398,000

1,492,00 0

2.6 METHODS OF ADVERTISING AND PROMOTION

In order to ensure the expansion and prosperity of the proposed business the following will be taken into consideration; media
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For the business to satisfy large market share there will be frequent advertisement in newspaper which will have the business logo and name .there will be also use of calendars , business cards and handouts which will be distributed monthly to make sure the business is active in the market.

19 Cost of media The business will use newspapers which will be posted twice in a month and will cost 600kshs per advert and also use of posters which will be done in a week producing 20sheets costing 10sh per sheet, use of calendars will cost Kshs 2000 a month, therefore total cost is Kshs 2,800 Effectiveness of Advertisements For the business to know its effectiveness and weakness there will be a graph on sales against customers which will the show output of the business in the market Promotion The business will be making organized promotion at least once a week through road shows which will be reflected by the sales. Exhibitions will be also organized in every one month to reveal its progress and services offered There will be promotions which will be done in open air to create more market share. Cost of promotion and advertisement Promotion Kshs 2000 Contacts. Ksh 3000 Free samples. Kshs 1500 Contacts of sponsor.. ksh 3000
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TOTAL. Kshs 850 The above promotions and campaigns will be determined by net income generated by the business in that more the income more the outcome of the promotions for the business and will get new ideas that attracts more customers hence increasing sales.

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2.7 DISTRIBUTION STRATEGY

Since the business is yet to grow, means of transport will be by use of public means while it plans to purchase a transit vehicle to deliver purchased items and also transport goods from wholesalers which will be very convenient to the business making to run errands smoothly since there is also a good road network. Distribution will be done as from wholesalers to retailers and finally to consumers. Goods will be ordered from wholesalers in Nairobi in which the proprietor will break bulk and distribute to retailers near the firm in quantity order. The total cost of transport; Public means Kshs 5000 Motorcycles.. Kshs 2000 Hand carts .. Kshs 500 TOTAL .Kshs 7500 (Risks not included) Anticipated Distribution Problems Time wasting: Transport of the of items to interior areas will be costly and time wasting since poor road network thus discouraging customers Use of public means: Are usually tiresome and not very efficient or liable due to delays, insecurity making customers be in doubts when delivering.

Use of motorcycles: it is affected by weather in that in case it rains it may lead to damage of delicate gadgets. Possible solution The business will plan to own a small vehicle for transport and delivery of products and also hiring vehicles from transporting and delivering companies.

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CHAPTER THREE
3.0 ORGANIZATION AND MANAGEMENT PLAN 3.1 ORGANIZATION PLAN
SAMCOM SATELLITES will give first priority to the management to ensure smooth running of the business. The business will employ qualified workers for its smooth operation so as to produce high and effective output in terms of profit.

ORGANISATION CHART FOR SAMCOM SATELLITES MANAGER

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PROCUREMNT OFFICER CHIEF TECHNICIAN SUPERVISOR/CASHIER SALES AGENT TECHNICIAN SECURITY OFFICER

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PERSONELL MANAGER

QUALIFICATION

DUTIES AND RESPONSIBILITIES In charge of all operations carried out in the proposed business Keeping records and releasing business money Hiring and firing Report changes in stock analysis report books Ensuring smooth running of business in

SALARY 20,000

Diploma in telecommunication Computer literate 3 years experience

PROCUREMEN T OFFICER Certificate in procurement Computer literate Creative and hard working
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15,000

the premise CHIEF TECHNICIAN Holder of diploma in telecommunication Computer literate 1 year working experience in the same field

Installs and manages systems Maintains tools and equipment

15,000

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3.2 OTHER PERSONELS

PERSONEL Cashier/supervisor QUALIFICATIONS Hold a diploma in accounting Computer literate 2 years experience Certificate in marketing Computer Prepare advert Identifying forums, 2 7,000 DUTIES Purchases Pays salary and bills Advices the manager SALARY 15,000

Sales agent

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literate Security officer O level Certificate of good conduct Computer literate Conversant with English and Swahili

exhibitions etc. Providing security 7,000

Messenger

Collecting of mails , posting and deliveries

6,000

3.3 RECRUITMENT, TRAINIG AND PROMOTION

RECRUITMENT; The proposed business will obtain qualified employees through advertisement through the media mainly the daily nation newspaper Name of the shortlisted persons will be conducted an interview after which there will be probation for evaluation. The individuals who will satisfy the management will automatically qualify for the posts and will be required to sign an agreement forms and forwarded to the manager. 24 TRAINING; The premise employees will be given special induction process by a professional technician and be oriented to be familiar with job. The manager expects them to perform fully in their duties and for that they are taken to seminars and workshop so as to open up their minds in the task they have ahead of them in exchanging ideas with other experts from big established companies. PROMOTION The proposed business will promote employees according to their delivery, how much one puts in the firm by being creative, open minded and also it goes hand in hand with discipline. And those
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who have additional certificates related to the job will have a higher advantage.

3.4 RENUMERATION AND INCENTIVES

The proprietor will remunerate employees according to their performance and input to the business. The table below shows the remunerations; POSITION Manager H/R Officer Cashier/supervis or Technician Watchman Messenger TOTAL NO. OF MONTHLY EMPLOYEES SALARY 1 1 1 1 1 1 6 20,000 15,000 15,000 15,000 7000 6000 78,000 INCENTIVES TOTAL (KSH) 1200 700 600 800 600 500 4,400 21,200 15,700 15,600 15,800 7600 6,500 82,400

25 INCENTVES; For better performance in the business employees should be motivated in that the management will provide something more apart from their monthly salaries which boost their morale and passion at work, they include;

Overtime payment: Proposed business working hours will be from 0800hrs to 1700hrs on weekdays only but work done after the stipulated working period will be regarded as overtime and it will be compensated fully.
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Leaves and leave allowance: The business will offer leave as a way to rest from work and it will be given twice after each year plus being given allowance for the leave period. Other incentives: Employees will be provided with tea while at work at their work stations

3.5 LICENCE AND REGISTRATION

SAMCOM SATELLITES is ready and willing to comply with the council rules and regulations concerning its operation and the business will acquire its trading license from Nairobi city council and renewed every one year at accost of Kshs 6,000 for the whole year. The business will register to the register of companies and obtain a certificate of insurance from AMACO insurance company in case of any risk Samcom satellite will be required to pay Kshs 4,000 for its registration and Kenya bureau of standard will be paid a fee of 6,000 after which it gets a certificate.

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3.6 SUPPORTING SERVICE

There is no existing firm which is self-sufficient hence requiring other support services such as banking and security services etc.

Since the business will be located at a central area it will have an advantage of security and also which the firm will create an account The business will make use of the WAN available around the area to send e-mails and also make order on line.

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CHAPTER FOUR

4.1 PRODUCTION DESIGN AND DEVELOPMENT

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The business chose the latest technology in both communication and operation by use of WAN (wide area network) which available, efficient, cheap and reliable compared to other means, it helps the business run smoothly because it is simple to use and manage with its low frequency of maintenance according to credible information that the equipment can last up to 15 years without major hitches. To cope with change in technology which may affect the business operation, the proprietor intends save money in the account that can enable it to hire or lease the expensive mordant technology equipment. Technicians will be sponsored to advanced premises for training and updates in change in technology.

4.2 PRODUCTION CAPACITIES

For the to be successful and effective it will need vital things around its operation Table 4.2.1 production facilities
ITEM Computer Screw driver Nails Hummer Pliers Tune tracer Tool kits TOTALS CAPACITY Effective Set All sizes Set Set Medium set UNIT 8 4 1 2 2 3 2 22 SUPPLIER Alpine Ltd Gim suppliers Gim suppliers Gim suppliers Marin Ltd Marin Ltd Marin Ltd COST PER UNIT 10,000 450 100 1000 1000 500 1500 14,450 INSTALLATION COST N/A N/A N/A N/A N/A N/A N/A TOTAL COST 80,000 1,800 2000 2000 2000 1500 3000 88,500

28 Since the business will be dealing on buying and selling and a bit of installation there will be no hired machines or equipment apart from the hired premise.

4.3 PRODUCTION STRATEGY

SAMCOM SATELLITES raw materials will be locally purchased and they include the following; MATERIALS Stationery Screw drivers Phase tester Insulating tapes Cleaning soaps Stamps Website Files Computers Decoders Dish Climping tool Millimeters television TOTAL QUANTITY 10 10 10 10 5 1 1 10 8 10 10 1 3 1 90 PRICE (KSHS) 100 50 50 20 50 200 500 20 10000 50000 50000 2000 500 5000 118,470 COST 1000 500 500 200 250 200 500 200 80000 500000 50000 2000 1500 5000 187,350 29 The raw materials are available throughout the year but to deal with shortages, the proprietor intends to make orders in advance and stored for future use . The sources of these company
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SUPPLIER Kasuku printers GMA suppliers GMA suppliers GMA suppliers ELI wash DANNE cuts Yahoo Kasuku printers Techno Techno Techno GMA Techno Techno

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materials are named above and services thus transport will be available. A nu of indirect workers will be required and will be hired on a casual basis to minimize the costs. This will depend on the workload; many of them will possess skills in telecommunications and installation or related fields. The costs of two indirect workers will be Kshs. 15,000 for the labor costs.

Table 4.3.2 Production Expenses (Operation Monthly) EXPENSES Electricity Rent Transport Water Stationery Insurance Telephone License Advertising Food TOTAL COST (Kshs) 1,500 4,000 2,500 500 1,500 8,000 1,500 6,000 6,000 10,000 41,500

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4.4 SERVICE DELIVERY

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RECEPTION COUNTER/PAYMENT

WORKSHOP

Stage 1: reception office When a customer enters the business, he/she is warmly welcomed at this section and directed after knowing what he or she want to order then directed to the counter section where the list and price tags are kept for reference and order.

Stage 2: counter/payment At the counter or payment office, the customer is given options and prices of various items shown and explained both in the two ways, advantages of various items and the problems likely to face with the items bought

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This is the stage where the customers get to see the various goods he/she is ordering and the demonstrations and testing are also done for assurance that the goods are of quality and efficiency.

Stage 4: counter After the customers have purchased their items, they come back to the counter for the payment of the goods ordered and receipts issued.

Factors affecting the production process. Competition: Samcom satellites will be facing stiff competitors since its an upcoming company and its a midst of them, the business will be offering the best after-sale services and ensure the decoders and satellites dishes are greatly of high quality, it will help curb competition.

Change of technology: due to the continuous change in technology, Samcom satellites will ensure that its staff are updated with the technology trends and taken for seminars to update them more hence cope up with it.

Financial costs: when a client does not have enough money, this may lead in delaying the installation due to lack of raw materials since money is needed to cater for raw materials, the business will discourage credit terms to avoid swindles.

Power black outs: due to shortages of power sometimes the business is planning to purchase a generator for back up purposes.
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4.5 GOVERNMENT REGULATIONS

The business will be governed by the regulations implemented by the government which are;

Labour laws; to protect the employees rights and ensure good relationship between the employer and employees. Workers compensation act cap 89; Ensures employees are paid some amount of money on retirement or in case of death Taxation; paying of tax to the government has a source of revenue to the country Custom duty; tax imposed to the business when importing goods

Safety acts; ensuring the place of work is safe depending on goods and services offered

Public health; Government ensures that the working area is conducive to the general public

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