WACHEMO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

Group Assgnment (1) On Entrepreneurship

Section............=B Group......Four(4)
by: 1. ESHETU ZELEKE ........................................2634/08

2. YESUF MOHAMOD..........................................3048/08

3. FIKRU W/YOHANS....................................... 2650/08

4. DEGINET ABRIHAM ....................................3579/08

5. DEJENE PETROS.........................................3939/08

6. DAGIME SHEDNBER...................................2569/08

7. GEDANO BERAKO.........................................2667/08

SUBMISSION DATE 05/05 /2010 E.C

SUBMITTED TO INSTRUCTOR DAWIT (Msc)

Contents Pages
1. Introduction ................................................................................................................. 1
1.1. About the business ..................................................................................................1

1.2. Mission and vision of the business ........................................................................1

1.2.1. Business mission .................................................................................................1

1.2.2. Business vision ....................................................................................................1

1.3. Objectives of the business ....................................................................................1

1.3.1. Short term objectives..........................................................................................1

1.3.2 Long term objectives............................................................................................2

1.4 Key personals.........................................................................................................2

2. Markets and competitors .........................................................................................2

2.1. Selected market segments ....................................................................................2

2.2. Customers benefit...................................................................................................3

2.3. Competitors .............................................................................................................3

2.4. Competitive strategy................................................................................................4

2.4.1. Price ......................................................................................................................4

2.4.2. Promotion ..............................................................................................................16

2.4.3. Place ......................................................................................................................17

2.4.4. Product..................................................................................................................15

3. Selling .........................................................................................................................18

4. Premises ....................................................................................................................25

4.1. General ....................................................................................................................45

4.2. Key suppliers...........................................................................................................34

4.3. Quality control .........................................................................................................54

4.4. Staffing ...............................................................................................................................2

4.5. Wages .................................................................................................................................5

5. Finance ..................................................................................................................................4

6. Executive summary ..............................................................................................................46

 Business Plan
1. Introduction

1.1. About The business:

WORLDHOOD cinema house is a partnership company between
TAGESE ZELEKE, DESTA ZELEKE, AYELE LOLAMO, ABERA
 AKAKO, MAHRU DOYORO, TESFAYE JIFARO, NETSANET
T/MARIAM AND TIGIST YAIKOB.
We have notice that in Durame city there are few film houses or
cinema houses which shows national and local movies only and
also used for different governmental and nongovernmental
meeting. Our cinema is opened to full fill the need of the people
that doesn’t happen with the existed providers like the cinema will
shoe not only the national and local movies but also selected
international movies like Hollywood and INDIAN movies.
1.2 . Mission and vision of the business

1.2.1.Business mission

the mission of our cinema is to start up and run cinema house in KambataTambaro zone to provide
movies with quality, to provide movies that will satisfy the interest in all type of ages, to provide
service that is suitable for customers.

1.2.2. Business vision:

To solve shortage of service as well as to promote our business internationally by providing a good quality of
cinema service.

1.3 Objectives/purpose of The business

1.3.1 Short term objectives:

the short term objective of our cinema is to get loyal customers by providing the best and quality movies
available, to open up fast food serving house and serve customers within the cinema, to be friendly with the
community, to achieve the forecasted service process using advertising and promotion, to get the fund or
loans to organize and standardized the cinema like America cinema houses.

1.3.2 Long term objectives:

the long term objective of our cinema is to be able to employ full-time members of staff to build up a reliable
team working in the cinema, to pay the loans of the bank, to open up three more cinema houses in BAHIR
DAR, DIREDEWA and HAWASA and to open up children, young and adult people play house next to the cinema
house.

1.4 Key personnel:

TAGESE ZELEKE (management) has a BA degree in management

and business administration and also in accounting. He has an
 experience working for 3 years in AMBASSADOR cinema in Addis
Abeba and 2 years in HAGER FIKIR Theater.
DESTA ZELEKE (financing) has a master’s degree in accounting. He
has an experience working for ETHIOPIAN NATIONAL BANK for 4
years.
AYELE LOLAMO (communication) has BA degree in both
management and psychology. Has an experience working for
MESFIN INDUSTRIAL ENGINEERING and MESSEBO CEMENT
FACTORY respectively for 4 and 3 years.
ABERA AKAKO (maintenance) has BA degree in engineering
2. Markets and competition
2.1. Selected market segment
There are two houses in the cinema one of them is for the
youngsters and the other one is for adults. In the first house that is
the youngster’s only animation, high school, comedy and love
movies that are appropriate for their ages will be shown. In the
second house that is he adults all kind of movies that are allowed
to be sees are provided.
The segment of the day is that in the morning mostly kids movies
are provided and mostly the advantage is given for youngsters, in
the mid day mostly Ethiopian and international movies are
provided all type of people gets advantage to enjoy the movie.
The segment of the night will be in the way that is the movies that
are mostly provided are love movies and couples are given the
most advantage than that of the others.
The one thing to segment the day and night in this way is because
of that in the day time most of the customers will be at work or
school and the only most available customers will be kids and old
peoples but in the night time lots of middle age people will be
available; most of the middle age people are more likely interested
in love movies.
2.2. Customer benefit
  The cinema has two houses for teenagers and for adults.
 On ordinary that means from Monday up to Friday the
service will be normal but in weekend there will be music
show and also standup comedy performance.
 During holidays there will be holiday programs and movies
but the customers will not pay for the movie only for the
holiday program.
 During days like valentine day, mother’s day etc… there will
be special program only for the day celebrators.
 Customers can also order a sit in the cinema before arriving
in.
 We have a web site so that customers can view which movie
is going to be seen and when it will be seen before even
arriving at the cinema.
 The service provided will be effective to satisfy the want of
the customers.
 In the night time we will offer a taxi service to a customer
that sees the movies in the late time.

2.3. Competitors
Primary competitors: BAROK cinema and EDNA MOLE cinema
Strength:
 They are well known/famous by Durame Town.
 Experience in the business
 Loyalty of the customers
 Location of the cinema houses
Weakness:
 They only show movies that are national and local level
 They don’t have a standardized cinema house that are
comfortable and suitable for customers
 They don’t have extra benefit to customer rather than
providing movies
 They only show one movie at a time. This means they don’t
have alternative choices for customers
 They don’t have serving houses like food and drinking in the
cinema
 Thy have narrow compound
Secondary competitors
Neighborhood film houses
Strength:
 Customers can watch different kind of movies that is not
allowed in cinema houses
 Most of the customers likes in movies are the same kinds
 Customers can watch series movies
 The price is too low compared to the price of the cinema
houses
Weakness:
 They are very uncomfortable compared to that of
cinema houses
 They are not supported by government
 Their customer treatment is weak
 Their service providing system is also weak
 Because of the size of the television the customers
cannot see the movies satisfactorily
Satellite television
Strength:
 Customers can get much more comfortable in their
home than in the cinema house
 Customers doesn’t have to pay for every movie they
watch
Weakness:
 Customers cannot watch the right movie they want in
the time they want to see
 Customers cannot get extra service beside the movie
 Movies are more interesting when someone sees them
with people but satellite television cannot give you the
pleasure like in cinema
2.4. Competitive strategy
2.4.1. Price: when setting the price it has been carefully
evaluated and compared the other in order to be having a
competitive advantage. Some of the activities that are bases for
the price setting. For example: most of the movies are
imported from outside market also our cinema is directly
involved in getting the movies and also the cost of importing
will get high when the movies are new and they are still on the
chart like USA BOX OFFICE, the service that are given in the
side the hall are charged in term of the entrance price, 3D
movies are used for USA movies.
The entrance price for Ethiopian movies is 30 birr; the entrance
price for USA movies in 3D is 50 birr 30 for 2D movies.
2.4.2. Promotion:
 Opening party: this is the first and the most important way to
promote the business. So most important people will be invited
like MEKELLE city president, available movie stars, people that
have relation with the entertainment industry and most of all
the press.
Brochures: brochures can get to anyone anywhere so using
them is more useful to reach people that have no time to see
television or listen to radio advertisement.
Advertising:using media that are more favored by people for
example like FANA broadcasting station and EBS are more
favored by Durame people that have the ability to be served in
cinema.
Special promotion: this is the type of promotion that is done
in the way that when there are special days like holidays,
valentine day and other advertisement prepared in favor of the
day and the cinema will be decorated in reflection of the day.
Value added: this is the kind of promotion that is done by
offering an extra service without increasing the price. So the
customers can tell others about the cinema in a good way.For
example for customers that watches ten movies will get to
watch one movie for free.
2.4.3. Place:

Kambata Tambero and the surrounding village play the main part in
collecting wealth for Durame city.

The population around Kambata Tambaro is mainly made up

of:
 Middle age workers
 University students
 Lots of families
 This gives our cinema to get advantage that is not touched by
other business runners.
2.4.4. Product:
Decoration:the outside of the cinema is decorated in the best
way that is attractive to the eye of people and it is more clearly
recognized and stay in the mind for someone who sees it for
the first time. The inside of the cinema is decorate in the way
that appropriate to customers to see the movie clearly and
comfortably this includes the chairs, stage, lighting system et…
Schedule: the scheduleof the movies that are going to be seen
in the cinema will be realized every week in news papers and
magazines. And also the schedule will be prepared in the way
that is more comfortable and best for the eyes of the customer
and it will have different/multiple movie choices that allows
customer not to have only one choice at a time.
Atmosphere: in time of the day the cinema will provide soft
drinks that are cool and also have a ventilator that cools the
cinema. The customers will not stand outside the cinema for
ticket in the hot of the day so the cinema will allow customer to
get in to the cinema and the ticket sellers will sell the ticket by
coming to every customer sit. In night time the cinema have a
machine that can warm the house and also serves hot food and
drinks.

3. Selling:
The selling activity of the cinema is evaluated in different ways for
example
 A. The movie: our most powerful sales weapon is the movie itself;
providing movie that can satisfy the need of the customers. The
movie in it self must be able to sell itself in the business area.
B. The schedule: it will be attractive, clear, and easy to read and
understand and also perfectly timed for customers.
C. Service staff: should have friendly, welcoming, and helpful
attitude. This can boost up the number of customers and this in
other sense can boost up the revenue of our cinema.
D. Service:this by itself can help increase the revenue of the
cinema; for example length of time between the first movie end
the start of the movie.
E. Changes: new chairs, new ideas, new advertising, change in
posters, change in billboard promotion. This will help the
customers not to be fed up with the day to day work of the
cinema and this will help in raising revenue of the cinema.
4. Premises:
4.1. General: we will purchase property right next to Durame
Campus and pay the land ones in a year.
Suitability for market: the location of the cinema should be
distanced from the premises of the people, and locates closer to
customers workable area. For example: students of university of
Wachemo Durame campus.
Access: the entrance must be clearly seen not to confuse
customers, there must fire escaping way in the building, parking
place also must be provided and others should be provided.
Design and décor: the ideal shape is circular with walls and
special features such as arts on the wall, special lighting system,
special designed toilet for men and women, service providing
areas specially designed with the decoration in the culture of
Ethiopia.
Maintenance: most of the maintenance is done by one of our
partner that is Abera Akako who has engineering degree.
 Otherwise there will be an agreement between service and
Maintenance Company.

4.2. Key suppliers:

Movies- in Ethiopia from the movie makers directly, from the
outside example from USA from intermediaries and if the movies
are new for the box office the cinema will directly be involved in
negotiating to bring the movies to Ethiopia cinema market.
Foods- the supplies will be gotten from the local customers
Drinks- the supplies for drink will be also gotten from the local
customers
4.3. Quality control:
All recipets will be tested initially- all movies will be seen by the
owners first before bringing to the customers to check if the
movies will be interesting for the customers.
4.4. Staffing: for the start and other partners will be the only full
time staff in the cinema with additionally workers in the service
delivery of cafeteria and serving inside the cinema by taking
orders from customers and fulfilling them.
4.5. Wages: 1000 birr for day shift and 1300 birr for night shift
workers other than the partners PLUS TIPS.
5. Finance

Activities Cost
property 1,200,000
Materials 1,000,000
Utilities 500,000
Maintenance 100,000
Transportation 50,000
Other expenses 50,000
TOTAL 2,900,000

6. Executive summary

Our company that works on cinema is opened to satisfy the need

of movie lovers in Durame Town. As it known there are not
much cinema houses in Durame that can satisfy the needs of all,
so our cinema is in depth of satisfying that need.
Our cinema will try to have lots of customers that can be served
by bring the best quality movies with the best service offering.
The main objective behind opening the cinema is the satisfaction
of customers and the opening of other cinema house in different
places by comparing the success of the current cinema business.
The main key personnel are TAGESE ZELEKE, DESTA ZELEKE,
AYELE LOLAMO, AND ABERA AKAKO. We hope customers will
be benefited in the way like holiday special, weekend special,
receiving the best service and watch quality movies and the like.
The main competitors for our business are first, BAROK and
EDNA MOLE cinema, secondly, neighborhood cinema houses
and lastly television satellite. Our cinema has a competitive
strategy to have a competitive advantage over our competitors.
The strategies are price, place, promotion and product. When we
sell our products that are movies we try to bring best service,
have a good schedule plan and the like. The plan related to
premises will have to be best in order to satisfy the customers in
that case we have developed a good plan like by seeing the
suitability of the market access and design and décor. Having
good supplier is best for the business and also quality control on
the movies and other material is necessarily for the job.

Reference
Mostly from internet services Like
www.google.com /business plan
www.yahoo.com /business plan
www.ask.com /business plan
entrepreneurship and business management