Professional Documents
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Title pages
EXECUTIVE SUMMARY ....................................................................................... 3
CHAPTER ONE ..........................................................................................................
1.0 Sponsor ....................................................................................................................
1.1 Business name ...........................................................................................................
1.2 Mission statement ........................................................................................................
1.3 Business location ...........................................................................................................
1.4 Form of Business Ownership ..........................................................................................
1.5 Type of Business ..............................................................................................................
1.6 Products and services ........................................................................................................
1.7 Justification of the Business Opportunities........................................................................
1.8 The industry ........................................................................................................................
1.9 Business Objectives Mission and Visions ............................................................................
1.10 Internal assessment ...........................................................................................................
1.11 Growth and Entry Strategy ...............................................................................................
CHAPTER TWO .......................................................................................................................
2.0 Marketing Objectives ..........................................................................................................
2.2 Target Customer..................................................................................................................
2.3 Market Share .......................................................................................................................
2.4 Advertisement and Promotion Strategies............................................................................
2.5 Pricing .................................................................................................................................
2.6 Sale tactics ..........................................................................................................................
2.7 Distribution .........................................................................................................................
1.Introduction1.
1.General Background
The current fast and dynamic economic growth of Ethiopia especially in urban area necessitates
equivalent growth of building and construction sector. The sector should expand rapidly to
support the overall economic development sustainable. In the building sector of the economy, the
multi- purpose in the one becoming rapidly expanding in urban areas of the nation since dynamic
economic development of urban economy requires the construction of these buildings in towns
to support the growing of business service sectors like supermarkets, Beauty salon, shops, offices
cinemas, Computer Center, Cafeterias, restaurant, assembly hall, guest house and other activities.
In this regard, mixed used building expands in the all parts of the country. Investment and
property development play an important role in any emerging markets or economies. Property
generally comprises reside vial houses and commercial real estate property (mainly mixed us
building) developed for rental business and sale. The property investment market in Ethiopia
remained under developed for several years. As a consequence, the supply of residential houses
and non-residential real estate that can be used for residence, office space, shopping malls and
catering services in the urban centers of the country is disproportionately low to cope with the
growing demand in the country spinning from the average growth in GDP of 5.5 percent over the
last ten years and population increase. The relatively good performance of the macro-economy
(real growth in GDP, low inflation rate and growth in investment and export sector) has
stimulated unprecedented investment growth in the property sector over the last five years. The
growth of investment in the property market over the last five years in consistent with the global
experience suggesting that
investment in the residential and commercial property (real estate) is greatly influenced by the
performance of the macro economic conditions. In general, a stable macroeconomic condition
leads to economic and business growth and develops investors’ confidence. This certainly spurs
large demand in the property market for office space, shopping malls, catering services,
apartment and residential houses. Following growing demand trends, and with the expectation of
high return on their investment capital, large number of land developers pooled their financial
resources and invested in the property market. To this effect, the owner of the envisioned Mixed
Use Building Ato Abel Kiros_________ who has been living for long time in this town, planned
to construct in Diredawa town and undertaken this project study to check the market, technical
and financial feasibility of this project. The promoter is very ambitious and committed to realize
the project. Hence, she expects to get the necessary support from the city administration to make
the project to be operational. Looking at the past trends and permits issues by the Government to
the construction of real estate properties including the mixed use building in the major urban
areas of the country specially in Addis Ababa one can easily conclude that the momentum is
more likely to continue .Besides, the government polices and incentives for the private sector
investment are very promising that motivates the promoter to engaged in mixed use building
business
1.3.Project description
The long-term goal of the project is become the best choice in Diredawa and its surrounding
areas by creating a differentiated experience capitalizing on personal service. The proposed
project will have a total area of 300m2, designed to reader a multipurpose giving business, which
will in turn plays significant role towards solving shortage of business center in Diredawa town.
The historical nature of the town as business unique location in one of the most attractive parts of
the occurrence of the town along the along the Ethiopian Rift Valley lakes laid a fertile ground
for future promising growth of the town. The owner plans the project to render banking and
insurance, shopping facility, bank and cafeteria services to create high quality class to satisfy the
interest of customers in the town. Based on environmental and other considerations, the
entrepreneur has determined the type and size of the building which is already
determined by the site; conceptual planning and preliminary analysis have been carried out by
analysts. In order to attract its clients to the service, the project will develop high standard shop
& banking rooms and office of best choices and will also save best quality restaurant and café,
national and international dish and various types of soft drinks
In general, the country’s decentralized state based economy, privatized and free market
economy; good governance creates a favorable environment for the development of investment
for private investors
CHAPTER ONE
Sponsor
Every business has the owner and the owner of the Multi-purpose business center Building
Construction Company is individual between several members holding various qualifications in
this field and experience in estate designing and house planning.
1.1 Business name
The business name is Multi-purpose business center Building Construction Company. This is
because the company will focus on a lot of construction in residential and rental houses. The
companies address is; Diredawa
Multi-purpose business center Building Construction Company is in Diredawa city Sabiyan
camps.
1.2 Mission statement
The business mission statement is standard houses for harmonious living. The company wants its
Customers to have modern houses to live in and that’s why it came up with such a mission
statement.
Type of Business
The type of business is market center. Under this business the construction of residential houses
is carried out for all types of people. The type of houses constructed are categorized into three
stages.
Size of industry
The business is a fast growing sector, each day the growth is escalating due to high demands of
Settlement for people all over the world. In the country the demand is the same as compared to
other parts of the country and the world at large. This industry is wide to the extent of covering
all real estate categories including single and multifamily residential dwellings commercial
dwellings, industrial and agricultural, land offices space, go-downs and ware houses, retail
outlets and shopping centers.
The number in the region *100 Total number1753 X100 =33%5376 According to the survey the
industry is growing rapidly due to high demands of residential houses.
The business will incur variable costs-they are substantially from month to month and are based
on the usage, they include advertising delivering and shipping charges also utilities and
employment ways are included
Objectives
To construct and develop modern shops, offices, and restaurant, bedroom & cafeteria facilities
that enable to provide standard services to visitors.
To undertake trading and other refuted business activities that enable to generate a reasonable to
the invested capital.
To develop modern business center that would provide services of international standard in order
to attract foreign visitors and thereby contribute to wards the generation of hard currency for the
country.
To create employment opportunities for the population in the town and
Contribute towards the beautification of the town through the construction of modern building
infrastructure and facilities
The business objective is to build a lot of residential and a social halls unto 40% 2025 by making
the house affordable and modern the enterprise will strive employment opportunity to the owner
and other members of the community who will need work
Goals
To complete a quarter of the business intended project within the first 1 year to asses
commitment To improve the number and quality of residential houses in the region To built
different types of houses that are affordable to its customers
Mission
To be the best company that can create and design attractive homes to our customers. This is by
having the best engineers and designers who are experienced to do the jobs.
Vision
The business wants to expand regionally and make itself popular in east Africa by marketing it
and building houses that are standard and modern
.III.Opportunities
The project has numerous opportunities since it is entitled to expansion with the rising demands
of residential houses. The government has also thrown weight behind the sector by encouraging
the industry to continue with its project.
Threats
The field has numerous people and companies who bring about a lot of competition. This
competition can range from the quality of products to the price of the product this has pushed
many companies to deep dip into their pockets in order to attract the attention of the customer
and remain top.
Growth
For an enterprise to expand there must be growth in the business. A business is termed successful
when it grows in terms of size and profit income.
CHAPTER TWO
2.0 Marketing Objectives
Multi –purpose business center Building Construction Company will have many customers to
sell its products to. The business is targeting the customers around the location and others from
far. The houses built along the Sabiyan are targeting customers from Diredawa city. This are
merchant who are the city or outside the city and want to reside around the university area The
business is expected to hold a market share of 15%initially but his is expected to rise to25%as
operations and construction continues. Multi –purpose business center Building Construction
Company Construction Industry will rely on the use of radios television set, magazines and
stickers as well as billboards and newspapers to have a big market share. It is interested to note
that both locals and international media will be used to advertise for the presence of our products
the business will strive to have a competitive pricing system whereby only high and moderate
prices will be offered to the customers, the business will ensure this by making sure it deals with
the customers directly without using middlemen
2.2 Target Customer
The business will have both commercial and individual and as a matter of facts the Multi –
purpose business center Building Construction Company estate plans to build low, middle and
high class houses, conferences hall, and many more types of houses. The business decided to do
business with both individuals and commercials so that no one should feel left out; this will also
increase the market share of the business. if the enterprise serves a number of customers in the
forms of individual, groups of individuals institution government departments and other social
organization
2.7 Distribution
In order to deal with its customers properly, the business will try to deal directly with customers.
This means there will be no middlemen to connect the business with the customers. This kind of
strategy will ensure direct assessment of the needs and aspirations of the customers by the
proprietor. As well it has the potential to limit communication expenses and other core problem
associated with consumers’ relationship management The business will encourage scenario
where customers are free to contact the owner at any time and vice verse
2.10 Recruitment
This is the process to get someone to work in the company or join an organization The function
of recruitment at the center will be undertaken by the manager with the assistance of the
marketing manager, the potential candidates will have to be identified and then contacted
through either the existing employees, customers or the advertisement The reasons we use
advertisement is because it is
1) Cheap. It is not costly as compared to other methods
2) It is popular-the adverts are accessed by many people
3) It can take long before it gets invalid. Depending on the customer The candidates will then be
invited for selection where the testing method will be the means The management of the
enterprise will have to get employees from existing construction firms around and outside the
region that will have had the experience needed to work effectively .these will then be converted
to proper workers with the very great perquisites that can make them work the center
2.11 Training
Training is the process of teaching someone to do a particular job or activity
The enterprise will offer short courses for the employees and other stake holders who may be in
need of the information about the various features in our firm Specifically the employees will be
encouraged to undertake courses in construction machine maintenance and embracing of the new
technology in the construction sectors and workshop management practices
2.12 Promotion
Promotion is a process of attracting people’s attention to an event All the positions with the
exception of the general manager will be held on temporary basis. This therefore means that
promotion opportunities for all the employees In this regard the enterprise will strive to make the
employees conformed through the use of other means and instruments like providing
meaningful work, allowing the employees the freedom to undertake their own activities
without unnecessary hindrance2.13 Remuneration and incentives
2.13.1 Remuneration Is increasing the employee’s salary to improve their working
morale There will be straight salary of all in the position of the employees in the business; the
skills being possessed by the employee and the nature of duties undertaken by the employee at
any single time in the workplace For instance the chief engineer will earn more than all other
employees, by this position of being second in the business hierarchy, while the constructors will
earn less than any other employees in the center.
13.2 Incentives
In attempts to improve the performance of employees, the business will install a range
of strategies. There will be a piece work system of servicing whereby the employees
will be enumerated according to the piece of work they produced within a given rate of
payment The profits and other gains made by the center will also be shared between the manager
and the other employees The various welfare services and other benefits will equally be
provided by the business in pursuit of the comfort of its employees. The employees will
also be given the chances to participate in the decision making process within the
business. This will likely inspire the performance of the employees in terms of productivity
efficiency and effectiveness
Category of Basic salary Allowances Total remunerations
employees
General manager 100,000 20,000 120,000
Chief engineer 80,000 10,000 90,0000
Architectures 70,000 15,000 85,000
Marketing manager 80,000 10,000 90,000
Land surveyor 50,000 8,000 58,000
instructor 60,000 20,000 80,000
constructor 120,000 50,000 170,000
CHAPTER THREE
3.1 Production Objectives Multipurpose market center Building Construction Company has
some objectives related to producing products First the business has a plan to produce more
goods or products as compared to the customers demand. The business also has a plan to build
houses that can withstand any kind of catastrophe. This includes earthquakes and thunderstorms.
The main reason to build such strong houses is to ensure our customers are safe in all kinds of
weather an avoiding any fatal case of the above to occur
3.2 Production Facilities and Capacity Facilities will be provided in abundant to enable smooth
running of the business. The business is also planning to offer facilities for young children and
people with special needs and many more. By doing so multipurpose market center Building
Construction Company will be more famous and considered to be serving every member of the
community or people from different walks of life irrespective of their disabilities, status and
gender
CHAPTER FOUR 4.
FINANCIAL 4.0
Multipurpose market center Building Construction Company will have to draw up
financial statements after every year end. The statistic from this financial document will be
of help especially when the business wants to determine the effectiveness of the business
operations. The profit obtained from the business operation will be invested in other more
important activities for the benefit of the owner and others in the business In addition the
most important areas will be much more looked into and these are significant documents to
be constructed after every trading period, they include balance sheets income statement
working capital and cash flows among other
CHAPTER FIVE
5.1 RISK MANAGEMENT
This is the identification assessment and prioritization of the risks. It aims to generate ideas
and promote good practice for the betterment of the business and managing risks through
the exchange of information
Financial support is very crucial to any business to function however lack of it can cause
the business to fail drastically and stop functioning. Debts can also cause the business fail
since the business needs many top function and when debts
are incurred it means there is no many and businesses don’t run in absence of money to
cater for its expenses
5.4.2 Economic Risk
Economy is crucial for a business to function regarded that in real estate materials price do
change with economy changes. The business will face risks in terms of economy when there
is inflation, this may affect the budget and plans of the business to carry out its activity.
Multi purpose market center Building Construction Company will put in place mechanism
to overcome this risk. In terms of financial risks the business will put in place some
measures to make sure it gets financial plans in order through;
a) Borrowing loans from banks
b) Using the savings to boost the business
c) Contribution from friends To overcome economic risks the business ensure that
a)Its budget is not fixed
b) It will purchase many of its material to avoid later rush when there is inflation