DECLARATION I declare that this project is my original work and has not been presented by anybody to the Examination

Board of any institution of higher learning. Signature: .. RICHARD MWENDA RINGERA CANDIDATE DATE: 4th sept 2012 This project has been submitted to the Kenya polytechnic university college Examination board with the approval of: WAMBUGU NGATIAH WAMBUGU SUPERVISOR Signature: ___________________________ Date.. DEDICATION I dedicate this project to my mother DAMARIS MWARI who was my guardian and kept reminding me always the need to acquire true ethical values and other fundamentals related to patience and understanding which are now of great importance in our social lives especially us men. May the almighty bless you in abundant.

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ACKNOWLEDGEMENT I would like to express my most sincere gratitude to my supervisors; MR WAMBUGU NGATIAH WAMBUGU for her excellent supervision, patience and encouragement. Also to remember is the entire Kenya polytechnic university college community. I would also like to remember the Umeme staff for their continued support and providing an enabling environment for me to carry out this research successfully. They provided me with the means to carry out this paperwork. MAY GOD BLESS YOU ALL

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TABLE OF CONTENTS EXECUTIVE SUMMERY CHAPTER ONE 1.0 BUSINESS DESCRIPTION1 1.1 MISSION STATEMENT.....1 1.2 BUSINESS NAME, LOCATION AND ADDRESS.2 1.3 FORM OF BUSINESS OWNERSHIP...3 1.4 TYPE OF BUSINESS..3 1.5 PRODUCT/SERVICES...3 1.6 JUSTIFICATION OF OPPORTUNITY5 1.7INDUSTRY ANALYSIS..7 1.8BUSINESS GOALS...8 1.9ENTRY AND GROWTH STRATEGY..9 1.10 KEY FACTORS TO SUCCESS.10 CHAPTER TWO 2.0 MARKET PLAN.12 2.1 MARKETING OBJECTIVES...12 2.2 CUSTOMERS..12 2.3 MARKET SHARE..13 2.4 COMPETITION..14 2.5 METHODS OF PROMOTION AND ADVERTISING..14 2.6 PRICING STRATEGY......15 2.7 SALES TACTICS15 2.8 DISTRIBUTION STRATEGY...16

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CHAPTER THREE 3.0) ORGANISATION PLAN 3.1 ORGANIZATION AND MANAGEMENT PLAN OBJECTIVES..18 3.2 BUSINESS MANAGERS AND QUALIFICATION..18 3.3PERSONNEL, NUMBER, DUTIES AND RESPONSIBILITY....19 3.4 ORGANIZATION STRUCTURE26 3.5 RECRUITMENT TRAINING AND PROMOTIONS28 3.6REMUNERATIONS AND INCENTIVES...30 3.7 LICENCE, PERMIT AND BY-LAW...30 3.7SUPPORT SERVICES....31 3.8MANAGING CHANGE..31 CHAPTER FOUR 4.0 OPERATIONAL/PRODUCTION PLAN....32 4.1 OPERATIONAL/PRODUCTION PLAN OBJECTIVES.32 4.2 PRODUCTION FACILITIES AND CAPACITY..32 4.3 PRODUCTION STRATEGY....33 4.4 PRODUCTION PROCESS....36 4.5 REGULATIONS AFFECTING OPERATION/PRODUCTION..36 CHAPTER FIVE 5.1 FINANCIAL PLAN39 5.2 FINANCIAL PLAN OBJECTIVES.39 5.3 PRE-OPERATIONAL EXPENSES OR COST..41 5.4 ESTIMATION OF WORKING CAPITAL..42 5.5 PREPARATION OF PRO-FORMA CASH FLOW....43 5.6 PREPARATION OF PROFORMA INCOME STATEMENT..44 5.7 PREPARATION OF PROFORMA BALANCE SHEET...45 5.8 CALCULATION OF BREAK-EVEN POINT.46 5.9 CALCULATION OF PROFITABILITY RATIOS.....48

EXECUTIVE SUMMARY 1.0 BUSINESS DESCRIPTION RIMWRI SUPPLIERS is a sole proprietorship business type. It will be located at MERU. The business will meet customers demands. The business is supposed to register and commence soon after the completion of the course in 2013.The business will commence in 7th Jan 2013 2.0 MARKET PLAN The business shall be offering services to bakeries and restaurants within its location. It shall develop its own ways on how to reach its customers on the market. The advertisement of the business shall be done to conquer its competitors.

3.0 ORGANIZATION AND MANAGEMENT PLAN The manager of the business shall be the owner being assisted by the senior staff of the enterprise and the other staff members shall fall in. The duties and responsibilities of each person shall be clearly stated in this chapter. The business shall also acquire its trading licenses so as to avoid any interruptions with the authority. 4.0 OPERATIONS AND PRODUCTIONS PLAN The business shall require various techniques to achieve its goals and objectives effectively. High regulations shall be maintained to reduce the damages on the equipment. The business shall register with the legal aspects of law before it starts. The business shall also require machinery and furniture as part pre-operational cost. All activities and machines shall change with the changing technology so as to compete favorably.

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5.0 OFINANCIAL PLAN The business total investment shall be 500000 which comprises of the owners equity, contribution from friends and relatives and also the loan from The Kenya Small Trades Society. The capital shall be required for the purchasing of machine and equipment and also other business requirements before the business opens its doors.

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