Professional Documents
Culture Documents
Lindi Kororia
Lindi Kororia
Lindi Kororia
P.O BOX 32
KAPSOKWONY
DECLARATION
ACKNOWLEDGEMENT
DEDICATION
EXECUTIVE SUMMARY
CHAPTER ONE
1.7.0 INDUSTRY
CHAPTER TWO
CHAPTER THREE
3.3.1 RECRUITMENT
3.3.2 TRAINING
3.3.3 PROMOTION
3.4.1 REMUNERATION
3.4.2 INCENTIVE
3.5.0 LICENSE
3.5.1 PERMITS
3.5.2 BY – LAWS
3.6.0 BANKING
3.6.1 AUDITING
3.6.4 SECURITY
CHAPTER FOUR
4.3.3 DEPRECIATION
CHAPTER FIVE
APPENDIX
ACKNOWLEDGEMENT
for the efforts they made to make my project successful. My sincere appreciation also
goes to my husband Mr. Rotich for guidance during the starting of the course. Finally I
thank my group members for the cooperation they had to make work easier.
DEDICATION
I sincerely dedicate this report to my parents for the financial assistance they have me. I
I declare that this report is my own composition and has never been produced by any
person.
EXECUTIVE SUMMARY
ELGON DISTRICT. It will be dealing with buying grains like maize, wheat and
millet direct from the farmers and then process them into flour.
address
P.O BOX 32
KAPSOKWONY
TELEPHONE 052-325020
The market prosperity are beyond doubts since it has a market share of 80 %
The business will actually meet challenges from the competitors. ELGON
INDUSTRY has laid its own strategies such as pricing strategy sales. Selling
This section reveal the internal environmental of the business. This section
recognize its personal specially there requirements, qualification, duties and their
banking, auditing, legal matters and security will enable me business to grow into
a big industry.
4.0 PRODUCTION
This is where the proposed business intends to provide quality goods and services
to its customers. This section include, production, facilities and capacity required
production strategies used production process and government requirement for the
operation of the business. The proposed business intends to their 306,800 for
production facilities and a total production list of Kshs 207,000 in the course of
operation.
This is the critical part of the business plan as the owner tries to allocate and
Also the plan provides all financial performance of the whole operation and it
The business opportunity is an attractive project which the owner has accepted as
a basic for the investment decision. The owner has scanned the basis feature of
the area and its resources inventory. Thus this is where the owner has considered
the population. The occupational patterns social and economic background of the
people.
Also the owner has surveyed the present of trading and the business in the area
with the reference to the interregional and the needs for the industrial goods as
well as services.
The business has also considered the targeted group which will be dependent
upon that is a actual the target group in terms of the opportunities strength and
weakness and also the financial resource. The existing in the surrounding area e.g.
availability of maize whets and millet will invariably signify the presence of the
business opportunity.
More so the business opportunity has a market shift, this means that consumed
purchasing power and change, in living styles. Thus indicate, the presence of the
business.
Again the services sector that the business opportunity will deploy includes
to cater for the industrial needs and services e.g. professional resources e.g.
The business name will be registered under the name ELGON INDUSTRY.
Therefore the owner wishes to submit this name to the registered of business
business here is that there is no any other milles around Kapsokwony Town
making people to walk to Eldoret in order to obtain grains flour e.g. Unga Ngano,
Sifted maize flour and millet flour for “ Uji” IN addition there is higher security
because the business is near the police station. There us availability of electricity,
Kapsokwony Town was chosen as the best location for the business having the
following reasons
Part of the town where the business is to be located has been carefully
considered because it is centrally located within the maize, wheat and millet
growing zone e.g. Tran - Nzoia District Uasin Gishu District Bungoma
District.
The inhabitation of this area are mostly farmers and a small extend business
The place provides a junction to three common majorly used road i.e Kimilili
– Kaptama – Kibuk when addressing the business uses the following address.
ELGON GRAINS MILLERS INDUSTRY
P.O BOX 32
KAPSOKWONY
TELEPHONE
KORURIA. The proprietor shall be the managed of the business and all
will be dealing with buying of maize wheat and millet direct from the farmers and
grinds into flow and in them packed in small bags which will be sold.
The by – products proceed during the processing will be packed into bags and
ELGON INDUSTRY falls under the processing industry this is evident from the,
fact that maize wheat and millet in large quantities further the industry falls under
Agricultural sector which at least covers most of the parts of the country i.e.
The area where the business will be located has a high population and it is the
central point between the four district e.g. Uasin – Gishu, Tran – Nzoia Bungoma
and Mt Elgon meaning that the business will eventually earn good return. The
other factor is the experience which the proprietor has e.g. managerial skills and
auditing skills.
The idea of starting the business in processing the grains into flour come up with
after witnessing how the maize wheat and millet farmer are discriminated in
Agricultural sector. It was through wise to take the advantage to meet their
demand and the desire of the community itself to set up the fore said business.
More so from visibility study carried out in Kapsokwony town there is no grains
Market study also is the favourable opportunity for this kind of business plus
personal finances resources i.e. 50 bags of maize which the owner will start with
loans from bank own savings and with the help of relatives indicates a clear
occasioned by the prevail high unemployment rate which will ensure recruitment
The research was done and it was found that such a business had never existed in
Kapsokwony town and thus it was encouraged because the business was going to
meet the desires and demand of the above district / named districts and the nation
of Kenya as whole. The establishments of the business will improve the living
standard of people.
1.7.0 INDUSTRY
thus this is very important for economic development in the country. The
INDUSTRY will liase with the ministry of Agriculture Ministry of Industries and
industry.
invested in the business for expansion and diversification to other area in Tran –
Nzoia Uasin – Gishu, Bungoma and other nation as whole ELGON INDUSTRY
expansion
The business shall use strength and weakness opptunitues and threats as its entry
and growth strategy thus this method involves evaluating inside and outside the
opportunities
the short coming of the business will be overcome by the owner .the proprietor
will use skimming as pricing techniques ,hence the customer are charged lower
prices to enter into the market easily . due to the right choice of the business a
great number of customers will be extend to make purchase from the business
due to a slightly lower price than other competitors and the goods and servicing
the business shall also stock high quality flow for the welfare of people as well as
lower quantity in relation to lower class .there shall be quick and good
packaging ,offer ,discount and sales promotion through ranging goods goods for
the overall consideration in this area of entry plan is that the proprietor shall
ensure that entrepreneurial skills ,managerial skill and technical skill capital and
Market plan / survey is systematic tool which can be used to reduce and improve
those people who require the products since the location of the proposed business
is within reach of fole district i.e. Uasin – Gishu, Tran -Nzoia, Bungoma and Mt
Elgon District itself. The business intends to attract customers who will acquire
the product as middlemen at cheaper price in bulk and sell them to make profit.
The business will also credit to these customers at an agreed date and the amount
of goods and services to be offered. The strength location of the business is also
near many boarding secondary school, Hospitals and Village polytechnics which
most of its students rents houses around the area of proposed business, thus this
Kapsokwony Town as the area of operation has a population of about more than
50,000 people and the business intends to attract close to 40,000 people. Hence,
40,000 x 100
50,000
= 80 %
proposed business.
In any business environment competition is inevitable but too mean of it may lead
to collapse of the enterprise therefore the ability of the owner is to cope with
The already established competitors dealing with grains millers in Eldoret i.e.
Dolce, Unga millers Limited has been rated. Also the business of those
technology.
through data analysis thus weakness identified during this feasibility study were
They buy the grains in low price and sell their products in high prices.
and competition will increase chances of grown and survival of the business
It will be achieved by :
margin to attract more customers hence this will facilitate high turnover for
maximum profit.
Advice the farmer on the new technology which they will apply to harvest
more grain
Provide qualified employee and experienced personnel to cater for the jobs
available.
Reading business journals newspaper, their sales literature and testing their
Interact with potential customers and supply to what is new on the market.
Comparing prices with that of competitors so that the business can have the
better one.
The pricing of the flour and other products will be largely depend on the cost of
the raw materials labour and transportation this above all the profit 120 % should
be realized e.g. the purchase of one hundred bags of grain each cost 1,000 /=
which will cost 100.00 plus the transport cost of 10,000 thus the pricing will be
120 x 100,000
100
= 132,000
From the above calculation a profit of 20,000 is realized but during high sale,
The price of the products manufactured will depend upon quality and quantity of
flour
The owner will be forced to produce different weight of the flour for instance.
CALCULATION
Kshs 1,100 will produce about 150 Kg of flour 1 kg of flour cost Kshs 50.00
150 kg x 50
= 7,500
50,000.00
The owner of the business will advertise its products through posters, newspaper
Signposts will be placed at major or junction within the town. Business card will
location and type of goods, sold, thus customers will use it incase they want to
contact, posters will be posted to the nearing towns, institution and other places.
2.7.0 DISTRIBUTION STRATEGY
The owner of the business will apply the following means of transport by road.
Tow lorries
Two tractors
Salesman will be trained on commission and for the contract of marketing and
Producer
Consumer