MANAGEMENT

Course Title :project management

Project Title:-HiBRET HONEY BEE PRODUCTION COMPANY
Group Members
Name ID.NO
1. Ahmed mohammed…………………….…wcu/0725/14
2. Alem Kasse……………………........…..... wcu/0726/14
3. Asemare Mitku...............................wcu/0727/14
4. Awoke Misganawu…………………….… wcu/0728/14
5. Ayinalem Getnet……………….............wcu/0729/14

INSTRUCTOR:-BELAYNEH.
(MBA)
Hossana,Ethiopia 2022

Table of Contents
Page
1. Introduction..................................................................................................................................1
1.1. Name and Address of the Business.......................................................................................1
1.2. Name and Address of Principals...........................................................................................1
1.3. Nature of the Business..........................................................................................................1
1.4. Statement of the financing needed........................................................................................1
1.5. Statement of confidentiality of report...................................................................................1
1.6. Objective...............................................................................................................................2
2. Executive Summary.....................................................................................................................2
3. Industrial Analysis.......................................................................................................................3
3.1. Future outlook and Trends....................................................................................................3

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 3.2. Analysis of Competitors........................................................................................................3
3.3. Market Segmentation............................................................................................................3
3.4. Industry fore Cast..................................................................................................................3
4. Economical aspect of analysis......................................................................................4
4.1 Benefit of the project..................................................................................................4

5. Description of the Venture...........................................................................................................4

5.1. Product and Services.............................................................................................................4
5.2. Size of the Business..............................................................................................................4
5.3. Office Equipment and Personal............................................................................................4
5.4. Location of the Business.......................................................................................................5
5.5. Background of the owners....................................................................................................5
6. Production Plan............................................................................................................................6
6.1. Production Process................................................................................................................6
6.2. Physical Plant........................................................................................................................6
6.3. Machinery and Equipment....................................................................................................7
7. Marketing plan.............................................................................................................................7
7.1. Pricing strategies...................................................................................................................7
7.2. Distribution Techniques........................................................................................................8
7.3. Promotion..............................................................................................................................8
7.4. Product fore cast....................................................................................................................8
7.5. Budget and Control Mechanism............................................................................................9
8. Organization Plan........................................................................................................................9
8.1. Forms of ownership...............................................................................................................9
9. Assessment of Risk....................................................................................................................10
9.1. Evaluating the weakness of the business............................................................................10
9.2. New Technology.................................................................................................................10
10. Financial Plan...........................................................................................................................10
Appendix........................................................................................................................................13
Reference.......................................................................................................................................14

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1. Introduction

1.1. Name and Address of the Business

Every business organization has the name that expresses their production activities as well as
trade mark to make their business unique or special from the competitors and distribute their
products to different parts of the country through the different channels of distributions. So, we
would have to plan our business, Hibret Honey Bee Production Company.

The address of the business is SNNPR, Hadiya Zone Hossana district, because of availability of
raw materials and fractures and also high demand for the product.

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1.2. Name and Address of Principals
The names of principals are, Ahmed mohammed, Awoke misganawu, Ayinalem getnet, Asmare
mitku, Alem kasse, and Yordanos Hailu, now a days the address of the business owners and
employees are in Hossana town around wachemo university.

1.3. Nature of the Business

Since the business will be started by the nature of the six people this business will be partnership
in kind.

1.4. Statement of the financing needed

This business will have to planned to start within the capital of one million (1,000, 000) birr.
This capital can be obtained from the contribution of members 45%, and the rest amount that
means 55% can obtain from grant (loan) from banks found in Hossana town such as commercial
bank of Ethiopia, Hibret bank and from aid of different non-government organization (NGOs)
Hossana branch.

1.5. Statement of confidentiality of report

For all assets of the business and its liability, each member has their own responsibility. Since
the asset of one business includes all liabilities and business capital, the effective risk
management should be applied for this business (Hibret Honey Bee Production Company). For
the success of Hibret Honey Bee Production Company, the support from legal body of the
Hadiya Zone is needed. By fulfilling all legal criteria and taking into account the existing market
situation such as demand, supply, price, competition, Hibret Honey Bee Production Company
would expected to be famous business in Hadiya Zone and, also in national market. By
receiving feedback from its customers, Hibret Honey Bee Production Company would plan to
modify its operation system and production quality.

1.6. Objective
 Maximize the income of honey production which required for extracted honey, harvested
by crushing the comb squeezing out of the honey. This is the lowest cost production of
honey.
 Maximize artificial insemination of honey bee queens in process used for very selective
breeding of honey bee race.

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2. Executive Summary
We have planned to start a partnership type of business called Hibret Honey Bee Production
Company around Hossana town. The business is planned to start with sufficient technical
requirement of owners and workers. The business will aimed to fill the gap of market need of
honey product by providing quality product.
The mission of the business is to make its members financially self-sufficient, and be competent
partnership not only locally but also nationally. The members of these business owners will
expect to be effective, loyal, punctual, honest, and responsible for all activities of this business.
All members of these business owners will expect to agree up in taking all calculated risk which
may faces during business operation. The business will operate with five employees in addition
to its owners.

Each member of these business owners and its employees will expect to have their own
responsibility, role and authority in each and every activity of this business. The purpose of the
business is maximizing profit and creating job opportunity for other.

The management of the business starting from general management employee would be
integrated both vertically and horizontally in order to ensure the achievement of goals and
objectives of the business.

Controlling and directing committee would expect to play a great role in implementation of
budgets, resources and rules and regulations of the business.

The business will plan to start on september,15, 2022.

3. Industrial Analysis

3.1. Future outlook and Trends

The business will plan to develop its productivity by 10% within one year as its main objective.
In order to these objectives all members of owners of the business and its employees should have
to work efficiently and effectively. In case of attracting and satisfying the need and want of
customers, all workers and management team should expected to be honest, loyal, and punctual
and append to customers. To scale up the capacity of the business, the product diversification
will be taken into account by the business.

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3.2. Analysis of Competitors
Since competition is a common character of every business, our business as should have to take
into consideration all features and influence of the competitors through adequate system of
information gathering and new market search for its product. If there is no efficient marketing
technique, the simple competitors such as local merchant can even be the obstacle for success of
the business. By understanding all this situation of competition, we should have to be competent
enough not at level, but also at national level.

3.3. Market Segmentation

By taking into consideration demographics such as age, income, gender and education quality
and geographic segmentation such as location, cities, states, Hibret Honey Bee Production
Company should have to plan to segment its markets. The major economic question that should
be raised in this market segmentation is ‘’for whom to produce?’’

3.4. Industry forecast

Now a day, Honey production is highly required as raw material for different purposes. As a
result, the price of honey is increased not only on local market, but also on national market. So
we planned to increases our productivity at least by 10% yearly. Since increasing the
productivity alone cannot make our business competent enough we will improve to quality out
product, price, promotion, place and other means to make sure our planned objectives
accordingly.

4 Economical aspect of analysis and Benefits of the project

Our company’s operation is so useful for the citizens of the area in so many angles. The one is its
role in the national product. Since hibret honey bee production companies are owned by
Ethiopians it has great advantage on saving foreign currency.

4.1 Economic Benefit of the project

- The project - The society
- The students - Partnership
- Employers
5. Description of the Venture

5.1 Product and Services

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The major product of our business will expected to be honey, which is used for different purpose
such as for good, biscuits, juice, medicine, candies and so on.
We will differentiate or rank our honey based on its quality which may causes price differences.

By doing so, we would plan to make our business competent enough both nationally and
internationally within full efficiency and effectiveness.

In addition to major product, we will produce other product from honey such as wax which is
used for different purposes such as traditional medicine, soap, fertilizer, and food for bee. This in
turn makes our business make profitable.

5.2. Size of the Business

Our business will plan to be small enterprise in terms of its size. The cause that will makes our
business, small enterprises in capacity limitation other factors such as financing opportunities,
independence, community services, job security and family benefit.

5.3. Office Equipment and Personal

Required equipment Personnel needed
 Bucket  One general manager
 Spoon  One deputy manager
 Knife  One accountant
 Computer  One seller
 Long cars  One advertiser
 Modern and traditional hive  One purchaser
 Cotton comb  One manager of daily activities
 Vessel  One development manager
 Sticks  One supervisor
 Containers  One guard
Table 4.1.Office equipment and personnel

5.4. Location of the Business

Every business originations have their own specific by the owner. So, our business/ Hibret
Honey Bee Production Company has planned to locate in SNNPR, Hadiya Zone around Hossana
town.

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The main cause of reflecting this area is that, availability of the market,the geographical
advantage the place, facilities of infrastructure such as water, road, and electricity and also it is
nearness to the central market of the biggest distinct town.

5.5. Background of the owners

All members of the owners of Hibret Honey Bee Production Company which consists of five
members .We have no experience, hope fully we will run the business information from our
effectively and efficiently because we have strong base of the business information from our
study at University.

Generally, the business planned to operate within human powers within different educational and
experience level in different operations of the business.

The specific development program such as training and advice for employees should be settled
by management team.

In order to build capacity of the business, the employees should be efficient and effective in
terms of quality they provide. By facilitating the channel of distribution and also increasing both
quantity and quality of product we planned to achieve objective of our business accordingly. To
attract a new customer, we have planned to work by creating close relation with customers and
considering their feedback as source of information.

Vision and mission of the business to should expected to be achieved according to the plant by
taking into consideration all aspects of customers, competitors and general market situation.

6. Production Plan

6.1. Production Process

The end product passes through the production process by changing all inputs to outputs. So, in
order to produce a preferable honey we have to plan to facilitate all production process

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requirements starting from preparing both modern and traditional hives which is basic
requirement for production of honey bee.
To produce quality honey, simply preparing hives welters it is modern or traditional is not
enough for our business operation. As a result also need to get improved/selected/bees species
considered as back bone of our production process. To control overall activity of the business
efficiently and effectively, we need would planned to build active management team. In the
operation of business different issues used to develop and expand our productivity such as
flowers, fresh water, and green environment program should be taken into, account. Our product
should expect to be specialized in its quality and techniques of handling customers.

6.2. Physical Plant

It is obvious that any business organization has its own physical plant such as building, spaces,
offices, equipment, store and etc.
So, the production of our business Hibret Honey Bee Production Company should be indicated
as follows structurally.

Management office

Worker site Bee station

Market place
Honey store

Fig.3.1.Physical plants structure of Hibret Honey Bee Production Company

6.3. Machinery and Equipment

To run our business efficiently we will have to plan to use all available machinery and
equipment. This machineries and equipment we will plan to have considered as catalyst for our
production process.

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Let us show them tabular follow:-

Require machineries Required equipment

 Computers Plates
 Printers Spoon
 Stationary materials Knife
 Convert Buckets
 Vehicles Plastic container
 Refrigerator Vessels
Table 5.1.Required machineries and equipment by Hibret Honey Bee Production Company.

7. Marketing plan

7.1. Pricing strategies

Price is a major determinant of demand and supply of every marketing strategy. Since pricing is
a focal point of competitors and the marketing demand and supply, it should be carefully
analyzed by taking into consideration the level of competition in the market and existing demand
of the market. We have planned to be competent enough through both price and non-price
competition by setting flexible pricing strategy and by promoting our product. If the markets
demand for honey increases we will tries to increase both production and price situation
simultaneously to maximize our profit. Since the market which we are participating in is
somewhat perfectly competitive market, my pricing strategy shouldn’t contradict with market
price. By the way the unit of measured our honey is kg (kilogram). The price will be determined
by unit per kg depending on the rank (quality) of the honey tabular.

Time Amount/kg Price (birr)

Year 1, Daily 50-100 4000-8000

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Weekly 350-400 28,00-32000
Monthly 600-800 48000-64000
Annually 5000 400,000
Year2, Daily 60-120 48000-96000
Weekly 370-400 29,600-32000
Monthly 650-900 52,500-72,000
Annually 6300 506,000
Year 3, Daily 80-150 6400-12,000
Weekly 390-490 31700-33600
Monthly 700-900 56000-7200
Annually 7600 609,000

7.2. Distribution Techniques

We have planned to use both direct and indirect channels of distribution to makes our product
available at the place of customers and markets. Diversifying our product within different outlets
by, preparing available stores and machines that keeps the product from damage or loss in the
major future plan of our business. Indirect channel of distribution such as through whole sellers,
retailers can distribution our product to different location of our customers.

7.3. Promotion
In order to create awareness and attract huge number of customers, we have to promote our
product by advertising through different media channels, such a Radio,TV, Newspaper,
magazines and interpersonal communication. During this promotion the cost incurred shouldn’t
be beyond of our business.

7.4. Product fore cast

In the future, our product will be competent enough not only locally but also nationally and
internationally by fulfilling all requirement such as quality, quantity, preferable taste and etc. but,
what we should have to take into consideration is forecasting alone cannot bring the needed
success, so all members of the business starting from lower employee to those have higher

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 position have to contribute the effort of his/her own self. To make sure the planned goals, yearly
we have to increase over productivity at least by 10% and above.

7.5. Budget and Control Mechanism

The mechanism that we will use to manage and control our budget is by monitoring and
evaluating all revenues and expense. Record keeping should be the major issue in operation of
our business to control risk.

During selling and purchasing occurred, the adjustment the balance sheet of the operation is
needed. The specialized account should have to take all of the operation is needed. The
specialized account should have to take all available control of management based on his/her
expertise.

8. Organization Plan

8.1. Forms of ownership

The business that we are designed to establish is a partnership in its types. In the forms of this
business, the division of position should be designed.

N Name of principals Level of education Role and responsibility

o
1 Ahmed Mohammed
2 Asemare Mitku
3 Awoke Misganawu
4 Ayinalem Getnet
5 Alem kasse
6 Yordanos Hailu
Economics BA dgree Managing over while business
Marketing Diploma Advisories
Management Diploma Managing financial auditing
Accounting diploma Vice manager
Computer or ICT Secretary
Accounting &Finance Casher

Table 7.1. Roles and responsibility of the principals’ numbers

9. Assessment of Risk
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9.1. Evaluating the weakness of the business
Business may become weak because of sales fluctuations, competition, financial laws and
regulations, risk of failure, increased responsibility, site of the business and amount of buyers
and sellers. By evaluating the entire obstacle we should have to save our business from uncertain
failure.

9.2. New Technology

New technology is being considering as main catalyzed for modern production process and
development. By taking into account the importance of new technology, we should have to plan
to use new technology to bring rapid growth for our product.

10. Financial Plan

The following income statement cash flow and projected balance sheet will show the financial
plan of Hibret Honey Bee Production Company.

Hibret Honey Bee Production Company

Income statement for the needed

september , 20, 2022

Income distribution Project year

Item 1 2 3
Sales income 250,000 295,000 350,000
Operation expense
Selling expense 50,000 45,000 45,000
Maintenance expense 10,000 15,000 15,000
Land and water 10,000 10,000 10,000
expense
Total operation 70,000 70,000 70,000
expense
Operating income 180,000 225,000 280,000

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Add expense
Salaries 54,120 54,120 54,120
Materials 40,000 20,000 20,000
Total add. expense 94120 74120 74120
Income before tax 85,880 150,88 20588
Profit after tax 77,292 135,792 185292

Cash flow of Hibret Honey Bee Production Company for Next three years

Description Year
1st 2nd 3rd
Investment 10,000 - -
Income 250,000 295,000 350,000
Expense 164,120 144,120 144,120

Hibret Honey Bee Production Company

Balance Sheet

September , 20, 2022

Assets of a business

Cash---------------------------------------------------200,000

Land----------------------------------------------------50,000

Vehicles----------------------------------------------600,000

Office equipment and machinery--------50,000

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Building and construction-------------------100,000

Total Asset-----------------------------------------1,000,000

Permanent workers

Title No Salary Annual Other Annually

Salary 10% 1st year 2nd year 3rd year
General 1 1700 20400 1440 21840
manager
Account 1 1000 12000 1200 13200
Sales 1 1000 12000 1200 13200
manager
Advisories 1 1200 14,400 1900 16300
Development 1 1050 12600 1260 13860
manager
Other 5 950 11,400 1140 12540
Total 10 7900 94,800 9340 103940

Appendix
Material which necessary for honey bee production

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 Bee pollen
Bees wax
Bee’s pollen basket
Lang troths hive

Method of prevent honey bee from swarming

Demare method
Check boarding
Opening up the broad nest

Reference
 Breyer and CIA ltd, Brazil, accessed 05/2018.
 Apifarm, obtaining methods Uruguay accessed 05/2005.
 The food insect’snewsletter vol.3 number 3, November 1990.
 ‘’How package bees are produced’’. A-Bee Honey, Retrieved 15
October 2017

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