Professional Documents
Culture Documents
Lemessa Bote Mall April 2023
Lemessa Bote Mall April 2023
MAY, 2023
ADAMA, ETHIOPIA
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EXECUTIVE SUMMARY 6
1. INTRODUCTION 7
4.1. Location 16
2
5.4.1. Service Capacity 28
3
9.1. ORGANIZATION AND MANAGEMENT 42
4
11.1. Economic and Social Benefit 59
11.3.1. Conclusion 61
11.3.2. Recommendation 62
5
EXECUTIVE SUMMARY
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1. INTRODUCTION
The mall is a hallmark of consumer culture, praised for its diverse and stylish offerings
in a controlled environment. Shopping malls have been criticized for worsening urban
decay at the expense of local businesses, but they remain a crucial part of daily life in
America and beyond. Malls are often the center of communities, serving as both a
gathering place and popular shopping destination.
Therefore, the mall's success may greatly impact the community's future. There are over
1,500 malls in America, ranging from a few hundred thousand to over 3 million square
feet, found in both urban and rural areas. Most malls have enclosed shops dominated by
chain retailers and anchored by department stores. This particular shopping spot has
many advantages and thrives due to its strategic location in the city's commercial
landscape. Malls are typically situated in accessible suburbs with visible locations. They
have a unifying management team and offer controlled, hygienic, and secure shopping
environments. They offer premier brand-name retailers and convenient parking,
ingraining themselves into shoppers' routines. Some malls fail due to a lack of appealing
environment or competitive pricing.
Few malls offer the outdoor, integrated shopping experiences that shoppers prefer, as
they mostly rely on cars and limit their competitiveness to walkable areas with public
transit and varied urban environments. Customers rely on driving but have less time to
shop. Shopping malls are modern complexes of interconnected buildings for various
merchandise. Customers can walk from shop to shop on interconnecting walkways in a
shopping arcade, which differs from a mall by having outdoor and non-privately owned
connecting walkways. Malls made up 8% of US retail space in 2017. Historic arcades are
still popular, such as Burlington and Galleria Vittorio Emanuele II in Paris. Arcades
downsized, larger centers built. Lighting and escalators innovated. In the late 20th
century, shopping centers evolved to include movie theaters and restaurants, while
architecturally significant early centers catered to wealthy shoppers seeking weather-
protected shopping spaces.
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1.1. Modern Mall
Shopping centers and malls grew in size from the 20th to the 21st century, reaching
around 2.4 million sq. ft. At 220,000 m2, Ala Moana Center in Honolulu is one of the
largest US malls. The Outlets at Bergen Town Center in NJ opened on Nov. 14th, 1957
with Dave Garroway as MC. In 1955, Allied Stores planned a mall just outside NYC
with 100 stores, 8,600 parking spaces, and 1.5million sq.ft., (140,000m2) of space
including a 300,000 sq.ft., area.
The design includes a Stern's store spanning 28,000 m2 and two additional 150,000
sq ft (14,000 m2) department stores, under Allied's chair B. Earl Puckett said The
Outlets at Bergen Town Center was the biggest of 10 centers, with only 50 planned
nationwide. West Edmonton Mall was the largest enclosed shopping mall from 1986-
2004. The biggest mall globally is the New South China Mall in Dongguan, China, with a
floor area of 892,000 m2.
The Golden Resources Mall in Beijing is the world's second-largest shopping mall,
spanning 680,000 m2. SM Megamall in the Philippines takes third place, with a gross
floor area of 542,980 m2. SM City North EDSA is the fourth largest mall globally with
a gross floor area of 504,900 m2. The fifth-largest mall is 1 Utama in Malaysia,
measuring 465,000 m2.
The Mall of America, the world's most visited mall and the United States' largest, is
situated in Bloomington, Minnesota. Some popular Asian malls with high visitor numbers
include Mal Taman Anggrek, Kelapa Gading Mall, Pluit Village, and more in Jakarta,
Indonesia; Berjaya Times Square in Malaysia; and SM City North EDSA, SM Mall of Asia,
and SM Megamall in Metro Manila, Philippines. Lucky One Mall in Karachi, Pakistan is
the largest mall in South Asia, while the Philippines has the most shopping malls in the
top 100 worldwide. The International Council of Shopping Centers categorizes malls into
neighborhood, community, regional, superregional, fashion/specialty, power,
theme/festival, and outlet centers.
Published in 1999, these definitions apply to all countries but editions specific to the US
and Europe were later made.
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2. BACKGROUND OF THE STUDY
Its success led to the establishment of similar malls like Harundale. Malls like
Maryland, Texas, Arizona, and Illinois emerged in the US over the years. In 1992,
many commercial establishments were achieved. Today, the Census Bureau reports
38,000 shopping centers with 4,586 billion sq. ft. of sales area and $717 billion in
turnover. Historically, Rome's forums functioned as public spaces for shopping, with
Trajan's Market being one of the earliest shopping centers in the city. Trajan's
Market, built by Apollodorus of Damascus circa 100-110 CE, is believed to be the
world's oldest shopping center. The Grand Bazaar of Istanbul, constructed in the
15th century, remains one of the largest enclosed retail complexes today. With 58
streets and 4,000 shops, it's unmatched.
Other covered shopping arcades, like Syria's Al-Hamidiyah Souq from the 1800s,
also paved the way for modern malls. Isfahan's Grand Bazaar is an ancient, covered
marketplace dating back to the 10th century. Meanwhile, Tehran's Grand Bazaar is
even larger, stretching 10 kilometers with a rich history. Chester Rows are possibly
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the oldest mall still in use, dating back to the 13th century or earlier. They were
covered walkways used as shops, storage, and homes for merchants on multiple
levels. Rows were named for goods like "Bakers" or "Flesh Mongers" at Petersburg, a
historic shopping and cultural center in the city's heart. Built in the late 1700s,
Gostiny Dvor has shops, galleries, restaurants, and cafes. Its architecture shows
Neoclassical and Classical styles with ornate sculptures and carvings on the façade.
Petersburg, founded in 1785, is a popular shopping destination with a mall-type
format. The complex boasts 100+ shops spanning 53,000 m2.
The Marché des Enfant Rouges in Paris has operated since 1628 and is still open.
Oxford Covered Market opened in 1774 and still operates. Passage du Caire in Paris
inaugurated in 1798. In 1819, the Burlington Arcade opened in London, while in
1828, Providence, Rhode Island introduced the retail arcade concept in the US. In
the 1870s, Milan constructed the Galleria Vittorio Emanuele II, which resembles
modern malls in its size. Other cities followed suit, such as Cleveland and Moscow
with their own retail hubs in the late 19th and early 20th centuries.
The Cleveland Arcade, founded in 1890, was a pioneering indoor shopping arcade
with exemplary European-inspired architectural design. The arcade has a Victorian
style with 1,600 glass panes in iron frames on two facades. It's part of the Queen
Victoria Markets Building in Sydney, built in 1898. During the 20th century, a new
type of shopping center emerged in the US, located away from city centers, due to
suburban development and car culture. The first shopping center for cars was
Market Square in Lake Forest, IL (1916). Another notable one is Country Club Plaza
in Kansas City, MO (1924). Initially, malls focused on attracting customers within
their premises through interior design strategies.
They introduced anchor stores to drive more traffic to smaller chain or individual
stores. Malls in the US were aided by the accelerated depreciation laws of 1954,
encouraging construction outside cities.
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In 1960, REITs were allowed, allowing investors to avoid corporate taxes. The
regulations affected the exurban topography with shopping centers, lodging and
quick-service restaurants. In the 1970s, the Ontario Downtown Renewal
Programme helped build downtown shopping centers, including the Eaton Centre.
Goal: Keep small enterprises downtown instead of moving to nearby areas.
Private investment in shopping malls hit record low <0.1% in Q1 2012. The Dayton
Arcade was built from 1902-1904 in the US, while the Lake View Store in Duluth,
Minnesota was constructed in 1915 and opened on July 20, 1916. Architect Dean
and Dean from Chicago, contractor George H. Lounsberry from Duluth.
Shopping centers in the US started with the Bank Block in Grandview Heights, Ohio
in 1928. It was the first regional center to have parking as a major design feature.
Don Monroe Casto Sr. crafted a strategy. For decades, it was the model for shopping
centers. Notable centers built in the 1920s and early 1930s include Country Club
Plaza in Kansas City, Highland Park Village in Dallas, River Oaks in Houston, and
Park and Shop in Washington, D.C.
The food court is found in most shopping centers, with fast food options and shared
seating. Regular exercise improves health, as shown by research. Frequent exercise
lowers chronic disease rates and boosts mental wellbeing and cognitive function.
Regular exercise benefits overall health and prevents chronic diseases. Victor Gruen
conceptualized the shopping mall format with a prerequisite for financial stability
through larger department stores in the mid-1950s.
This strategy attracts shoppers to the mall, benefiting smaller stores as well. Anchor
stores or draw tenants are typically larger establishments in commercial centers.
Anchor stores are spaced apart to maximize foot traffic. Today we'll discuss
exercise's benefits like weight control, chronic disease prevention, better mood,
socializing, and physical challenge. Make sure to exercise every day! Exercise has
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numerous health benefits, such as regulating weight, reducing disease risk, and
enhancing emotional wellbeing. It can also promote social interaction and physical
growth. It's recommended to exercise daily by running, going to the gym, or playing
team sports. Stand-alone stores are often near shopping centers or on the same
property. Some stores may be linked to the central facility, and have exclusive or
shared parking. Stand-alone stores in a shopping complex can be intentional or
opportunistic. They are considered part of the overall retail complex.
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3. THE PROFILE OF PROMOTER
I entered the world as the offspring of Obbo Bote and Adde Lebeta. Workitu Daksa
has been present since the year 1978 according to the Ethiopian calendar. As a
person, I feel fortunate to have the opportunity to be in a marriage and have been
given the responsibility of raising three children.
At the moment, I am serving as the General Manager at the Adama branch of Haile
Resort. My interest in investing in this enterprise stems from the fact that most
shopping malls in Adama do not meet current standards and are therefore not the
preferred shopping destinations for city shoppers.
Consumers tend to have a preference for going to malls or shopping centers over
individual retail stores for various reasons. Shopping malls provide a variety of goods
and products that can be conveniently accessed in one central location. Shopping
malls provide customers with a wide range of products from various rival
manufacturers, all easily accessible in one building. Thus, making it easier to
compare and obtain. Shopping centers offer parking options on their premises.
Shopping malls feature a variety of dining areas that provide a wide selection of
cuisine. Shopping malls usually include movie theaters and spaces for playing games.
The expression of an envisioned future or individual ambition is encouraged. It is
suggested that allocating resources towards sectors that offer services can bring
about a prosperous outcome as a business owner and innovator, and also have a
beneficial effect on the sector and society. To achieve their future goals, the author
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has developed a collection of skills, qualities, and previous experiences, while also
utilizing various strategies.
The entire project will span across a 1,500 square meter plot and is estimated to
cost around 128 million Birr. The promoter plans to bear 30% of the project cost
through equity.
The service has gained substantial acceptance among diverse groups including
residents of Adama, individuals working in government and private sectors,
tourists, locals and even affluent households to a certain degree. There is a
promising opportunity to establish and sustain contemporary commercial mall
services in Adama and throughout the nation. In the current circumstances, it is
crucial to establish and uphold contemporary shopping centers that cater to
human needs.
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4. GENERAL DESCRIPTION OF THE PROJECT AREA
4.1. Location
Adama City is the highly growing city of infra-structure and urbanization are
developed among other towns of Oromia Regional state. Adama is just situated on
the main road Addis Ababa to Djibouti which is advantage to the port. Currently,
the Adama City Administration is working day and night to expand infrastructures
that were not covered before. This project is very crucial to add aesthetic value and
increase growth of the town. The community of the city and surrounding rural
Kebele will have a chance of job opportunities on permanent and temporary basis,
adaption of new technology. More over the project owner and the government are
benefited from revenue generated. The premises require 1,500m2 of land for the
realization of the project.
A. Supply of Quality Service: Lemessa Bote Lebeta Modern Mall will be providing
quality service at affordable price for local community.
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through creating self-employment or employment in other organization. Hence, this
factory previously was creating for 470 employments.
E. Stimulate the Local Economy: This modern commercial mall has positive
externality in the city administration/zone that will encourage the economic
movement of local economy. There will be economic relationship and transactions
among different sectors.
The city is the center and a place of East Showa Zone and it is one which growing
among the Cities of the country. It is surrounded by rural Woreda and towns of East
Showa Zone. The surrounding rural population is economically based on vegetable
farming (Onion, tomato, Potato), cereal framings, which are: Teff, Wheat, Maize,
Corn, Bean, Pean, Sorghum &etc. and animal rearing, also there is traditional and
small scale irrigation in some district of East Showa Zone. While the urban people
are participating in commercial activities like Trade, shops, laundry, bar and
Restaurant and Cafeteria, an employment for the private, government and NGOs
and etc.
With regard to the construction materials, stones, quarry, and others found near
the project at the vicinity of the City available nearby. In general, these major
resource potentials and prospect of the surrounding initiate any person intend to
invest in the area. The main justifications behind the selection of this location are:
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Relatively advanced development in infrastructure (Power, Water,
Telephone internet, road etc.
All road to the nearest market outlets Accessibility of raw
materials and skilled labor force
Near to the main road to port of Djibouti and Modijo dry port
that will make ease for to import raw materials for the factory
and machines
Conducive investment policy and governance
Environmentally fit to steel milling manufacturing
A. History
Adama city was established in 1917, Adama is relatively an old city by Ethiopian
standards. Adama has been serving as the center for different levels of
administrations at varying times. In 1946, it became the seat of the then Yarer and
Kereyu Awraja and later in 1988 it became the seat for the East Shoa
Administrative Region. At present, it is serving as second seat of Oromia National
Regional State/Chefea Oromia, and as center for industry, trade, culture, conference
center. Now the town is being administered by Mayor and has a status of city
Administration and directly structurally to the Oromia National Regional State
especially to the president. It has 14 administrative kebeles. The city municipal
services like solid waste service begins in early of 1960’s.
Adama is a busy transportation center. The city is situated along the road that
connects Addis Ababa with Dire Dawa. A large number of trucks use this same route
to travel to and from the sea ports of Djibouti and Asseb(though the latter is not
currently used by Ethiopia, following the Eritrean-Ethiopian War). Additionally, the
Addis Ababa-Djibouti rail road runs through Adama.
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Adama University (formerly Adama Technical Teachers College) is located in Adama.
Adama Stadium is the home of Adama City FC, a member of the Federation league.
It is said that the city name Adama was derived from the Oromo word adaamii,
which means a cactus or a cactus like tree. More specifically, adaamii means
Euphorbia candelabrum, a tree of the spurge family, while hadaamii would mean
Indian fig.
Following World War II, Emperor Haile renamed the town after Biblical Nazareth,
and this name was used for the remainder of the twentieth century. In 2000, the
city officially reverted to its original language name, Adama, though "Nazareth" is
still widely used. In 2000, the government moved the regional capital of Oromia
from Addis Ababa to Adama, sparking considerable controversy. Critics of the move
believed that the Ethiopian government wished to deemphasize Addis Ababa's
location within Oromia. On the other hand, the government maintained that Addis
Ababa "has been found inconvenient from the point of view of developing the
language, culture and history of the Oromo people."
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B. Topography
C. Geology
The city lies on quaternary volcanic rocks that are formed in associated with the
formation of rift. The sediments that dominate the floor of the rift are alluvial and
lacustrine deposits. The major tectonic lines, which are aligned in NE-SW direction
in the rift floor, from numerous local graben and horst structures (rift-in-rift
structures). The central volcanoes are rooted along these tectonic lines are
characterized by collapsed calderas, among which the Boku caldera occupies the
south part of Adama in the main Ethiopian Rift (MER). The volcanic products from
the Boku volcano can be grouped as alkaline and per alkaline rhyolite lava domes,
flows, and pyroclastic falls, which cover the floor complex ignimbrite deposits. The
major products are rhyolite lava flows, obsidian flows, pumice falls, and spatter
cones with associated basaltic lava flows. After the emission of these products, the
caldera has been collapsed and given rise to post caldera (intera-caldera) the
products such as scoria cones with associated basaltic lava flows. The Boku ridge
forms the maximum peak in the area rising from 1600m above the sea level to
1875m above the sea level.
Sediment of alluvial and lacustrine origin covers the catchment of the city basin. The
laboratory analysis made on the soil samples taken at the bed and bank of the main
canal that drain to the western catchment indicated that the bed of the channel is
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covered by sandy soil ( 6% silt and 94% sand) while the bank is covered by sandy
loam soil ( 38% silt and 64% sand).
E. Rainfall
The rainfall recorded at Adama meteorological station for the past 49 years
(1953-2001) E.C indicated that the average annual rainfall is about 866.25 mm.
most of the rain occurs in the summer season (June to September). Rainfall
intensity data is not available for the city. Thus the data recorded at the nearby
stations of Bishoftu, Kulumsa and Matahara are adopted. Accordingly, the average
of maximum intensity of rain fall in the three stations for the past 27 years (1975-
2002) E.C is about 39.7 mm/hr.
F. Temperature
The mean annual temperature of the city is 21Co. The city temperature can be
classified as semi humid to semi-arid environment, which characterizes the altitude
range between 1300 to 1800m a.s.l. The hottest month with the maximum mean
temperature of 31Co is May. The monthly minimum temperature is Nov & Dec (11.5
Co). The maximum temperature varies between 25.8Co and 31Co while the
minimum monthly temperature varies between 11.5Co and 17Co.
G. Climate
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H. Demographics.
Based on the 2007 Census conducted by the Agency of Ethiopia (CSA), this city has
a total population of 220,212, an increase of 72.25% over the population recorded
in the 1994 census, of whom 108,872 are men and 111,340 women. With an
area of 29.86 square kilometers, Adama has a population density of 7,374.82; all
are urban inhabitants. A total of 60,174 households were counted in this city,
which results in an average of 3.66 persons to a household, and 59,431 housing
units. The four largest ethnic groups reported in Adama were the Oromo(39.02%),
the Amhara(34.53%), the Gurage(11.98%) and the Silte(5.02%); all other ethnic
groups made up 9.45% of the population. Amharic was spoken as a first language by
59.25%, 26.25% spoke Oromiffa and 6.28% spoke Guragiegna; the remaining 8.22%
spoke all other primary languages reported. The majority of the inhabitants said
they practiced Ethiopian Orthodox Christianity, with 63.62% of the population
reporting they observed this belief, while 24.7% of the populations were Muslim, and
10.57% were Protestant. The 1994 national census reported this town had a total
population of 127,842 of whom 61,965 w ere males and 65,877 were females.
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5. PROJECT DESCRIPTION AND JESTIFICATION
Malls have a bigger impact on businesses than traditional markets. They attract a
diverse range of buyers and sellers and cater to both parties' preferences.
Furthermore, these establishments offer ample decision-making time and relaxed
shopping options in a competitive retail industry. Mall developers are seeking new
strategies to involve customers as shopping malls gain global popularity. Shopping
malls are enclosed buildings with various stores.
The main tenant occupies 88% of the leased space in a desirable shopping mall in
Addis Ababa with a variety of stores. This is a handy choice for shoppers. The
complex comes from a unique idea and has three main categories. Types of retail
include shopping malls with multiple stores and facilities, and local centers with a
few stores and a grocery shop. Larger stores offer bulk goods and prioritize car park
over pedestrian areas.
They help distribute goods and, to a lesser extent, services. Consumer buying habits
are important. People often buy goods like gifts, clothes, food, and household items.
This study looks at how shopping centers are judged based on their appearance. To
achieve this, the inquiry categorizes five groups: sale items, personnel, location,
pricing, and consistency. Appearance characteristics of a shopping complex are also
divided into five groups, all affecting consumer behavior. The five categories are:
atmosphere, built environment, promotional emphasis, ease, and protection and
wellbeing. Factors in the ambience group include lighting, landscaping, music,
fragrances, hygiene, and temperature.
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The physical infrastructure includes the mall's outdoor areas, dimensions, parking,
and central space, while marketing focuses on strategies, tenants, environment, and
promotions. Convenience is key for shopping centers, including amenities and
proximity to consumers.
When building a shopping center, fire safety is a crucial concern due to potential
hazards and civil liabilities. Hazards can include falls, accidents, and fires. Malls are
complex regarding fire safety. A reliable fire alarm system is crucial to protect lives
and assets by coordinating with various operational systems such as sprinklers,
smoke regulators, backup power supplies, emergency lighting, and monitoring
stations. Lots of parking in a shopping center may not be crucial for tenants and
merchants, but it matters for customers. Many mall shoppers drive and parking
availability impacts mall selection. Parking is a crucial issue for modern shopping
complexes, as it's customers' first and last impression. Retailers struggle with parking
challenges.
The new shopping center understands that shopping is usually voluntary and people
avoid places with poor parking. If parking is difficult, customers may go somewhere
else. Prioritize security and ease of access. Consider pedestrian travel from parking
space. Ideal design balances comfort and space efficiency. Park and explore the mall
with pleasure.
A. Objective
Lemessa Bote Lebeta Modern Commercial Mall has planned to construct a novel
Market mall, with the aim of achieving specific goals.
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We plan to construct a contemporary shopping complex that will offer
comprehensive marketing services in a single location.
Transform Adama city into a premier shopping destination that will entice
tourists, commuters, customers, and similar parties.
The modernization and streamlining of marketing systems and networks aim
to revolutionize cultural shopping practices.
The shopping center constructed is equipped with an advanced parking
system.
A contemporary shopping complex was erected with the aim of providing a
substantial entertainment destination that caters to the needs and desires of
clients of all ages, especially youngsters.
With both temporary and long-term positions available, the project provides
employment prospects to upwards of 470 individuals ranging from those in
construction, to those involved in operational capacities.
The primary goals were to maintain a constant watch over shopping and
amusement center premises, keep a close eye on storefronts, and oversee the
cash register zones of stores.
B. Benefit
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Find a solution to the issue of market center that arises during the process of
development.
The mall has been created with a grand total of 1,500 square meters of space,
which consists of eight primary levels for commercial purposes, and two
underground levels that serve as parking space, which can hold more than 200
vehicles on each floor, adding up to an area of nearly 900 square meters. The
ensuing information explains the allocation of land.
The lowermost levels, and the second and third stories of the building, identified as
B2, have an individual area of 900m2, expressly designed for the accommodation of
commercial outlets.
The first subterranean level, referred to as B1, encompasses a total floor area
of 900m2, serving primarily as a parking facility and housing laundry, as well
as a diverse array of retail establishments such as bag, leather product, and
gift shops, among others. The provision of business services encompasses a
variety of offerings, such as...
The ground floor (GF) of the mall spans an area of 900 square meters and is
deemed as the principal level. It accommodates several establishments,
including a hypermarket, retail stores, financial institutions, and service-
oriented shops. The present composition encompasses the primary access
points to the shopping center, as well as the primary commercial
establishments, including prominent domestic and foreign brand entities. The
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present level is deemed as the most profitable floor in terms of generating
revenue.
The initial level of the building is characterized by a substantial surface area
measuring 900 square meters, catering to vendors requiring extensive space
allocation. Furthermore, the premises accommodate distinguished retail
establishments renowned within the country and the surrounding province.
The second level of the building encompasses an expanse of 900 square meters
and features facilities for leisure activities such as gaming stations and eateries
such as restaurants and cafes.
The kiosks, which are strategically dispersed throughout the four-story
shopping center, are compact in size measuring approximately 5-6 square
meters. These kiosks have been strategically positioned to adequately and
effectively fill any voids or gaps found in significant and sensitive areas across
each floor. The rent price offered by them is the most expensive among its
peers.
Based on field surveys and market analysis, it's important to carefully select tenants
for each floor while avoiding strong competitors. "Tenants Mix" is crucial, with one
tenant per category being sufficient. Sometimes, two tenants in the same category
may be allowed if there is little chance of them impacting each other or other
secondary competitors. Expansion may also be possible through constructing new
floors.
There are various ways to approach the issue at hand; however, it is imperative to
consider the pertinent factors and limitations that may affect the outcome.
Therefore, thorough and systematic evaluation of the available options is necessary
to arrive at a sound decision. The provisions of services and products.
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contemporary shopping center is primarily intended for rental purposes and will be
developed to cater to the interests of the shareholders. The provision of parking-
related amenities.
The provision of stocking services is a vital aspect in retail operations. It involves the
efficient management of inventory to ensure optimal product availability and
customer satisfaction. The efficient implementation of stocking services requires a
comprehensive understanding of customer preferences, purchasing patterns, and
sales trends. Therefore, the deployment of effective technology solutions and data
analytics is essential to enable the identification of optimal stock levels and the
timely replenishment of inventory. Adequate stocking services are instrumental in
ensuring sustained profitability and customer loyalty in the highly competitive retail
environment.
The establishments encompassing beauty salons, boutiques, and jewelry shops exhibit
a diverse range of products and services, predominantly catering to the domain of
personal grooming and luxury fashion.
The phenomenon of hostility and related constructs are of great importance to the
field of psychology and have been extensively researched over the years.
Within a span of three years, the construction of the modern commercial mall
owned by Lemessa Bote Lebeta will be fully accomplished. Upon its completion of the
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construction phase, this mall is expected to offer comprehensive services by the end
of its third year. Table 5.1 displays the gradual increase in service capacity over a
span of three years, starting at 70% in year one, rising to 85% in year two, and
finally reaching 100% in year three.
The different service capacity of mall that shopping mall will be delivered at the
capacity of 70%, 85% and 100 % from year one to three and after by service
types and service quantity will be summarized in table 5.2 below.
Facilities that required running the day to day management activity of shopping
center some of the part of fixed asset will be office fixture, equipment furniture
and Vehicles.
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A. Office equipment and Furniture
Office equipment and furniture in table 5.3 below.
Table 5.3: Office equipment and furniture needed to begin management of the
mall
The depreciation method used by Lemessa Bote Lebeta Modern Commercial Mall
weighted average methods of depreciation. According the methods the depreciation
methods and depreciable amount presented in table 5.5 below.
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Table5.5. Depreciation Schedule
3,573,479.15 10,249,841.67
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6. MARKET STUDY AND ANALYSIS
Building modern commercial Mall or Shopping center play vital role in solving
different problems marketing that create socially, economically and politically by
favoring both consumer and sellers. Basically mall /shopping center provide the
following services: facilitating and shortening the length marketing system,
transportation, to shop quality products at affordable price, parking service,
security from theft and related risk, recreation service, hostility service (bar, café,
restaurant and bedroom), children playing amusement, conference centered etc.
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center itself, and allow the gaining of profit through the generated sales and paid
rents.
For the definition of the augmented product, we have to take into consideration
the brand value and image associated with the shopping center, which provide
intangible added value for the investing owners. The potential product, in my
opinion, beside the above and the potential future developments, includes the
customers of the shopping center (Customer Mix), through the spending of whom,
by the maximization of percentage rents, the potential maximum profit can be
achieved. The representation of product levels and the composing elements related
to them through traditional concentric circles is not recommended here, because in
the case of shopping centers, these elements (Location, Tenant Mix and Customer
Mix) are in constant interaction and they co-shape the shopping center itself.
Customer mix is the second basic component of the shopping center as Product,
and represents the second central topic of the general shopping center theory.
Though in the traditional approach, the role of customers is exhausted only in
visiting shopping centers and purchasing from the retailers situated in the centers.
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Based on these models, customers and users play quite an active role in the value
creation process (Hakansson and Snehota, 1995) and take part in creating the
value itself. Starting from this, there is no doubt that the customer mix is very
important in the creation of the shopping center as Product. Even if, they take
part only indirectly in the process of shopping center development, this situation
changes in the stage of operation and center management, when they play a very
active role. But in order to utilize and internalize optimally this role of the
customers during center management, it is necessary to view the Customer mix as
an important component already in the development stage. Other characteristics
and phenomena, relevant for shopping centers, such as various shopping types,
shopping motives and shopping trips. Knowing these is essential for creating
shopping center patronage and a shopping facilitating atmosphere. While general
shopping characteristics play a role mostly in shopping center site selection,
shopping habits have a greater effect on the other physical characteristics of
shopping centers and the creation of its Tenant mix.
Mall promotions these days are as common a sight in shopping centers as the
tenants themselves. Malls sometimes hold themed events especially during festivals,
food festivals, handicraft exhibitions and celebrity visits which attract footfall and
boost retailers’ sales, but also provide a platform for opportunities in
commercialization (which means increased visibility and mileage, in the context of
a mall). These events attract consumer durable companies, automobile companies,
bringing in a lot of non-core revenue because it helps them promote the product
among the relevant customers and built up a database of prospective customers.
34
The brands are attracted to malls with high footfall and their target demographic.
Retail Merchandising Units or kiosks are also a more permanent revenue stream.
The promotional events include fashion shows, display of important cricket
matches, football finals. Often, these events are sponsored by the tenants of the
mall who want to increase footfall.
From the physical factors that influence mall equity, we could mention the value of
the real estate asset, the total sales generated by the shopping center or the
shopping center’s incomes from rents. The value of the real estate includes the
value of both the land plot and the building itself, the measuring of which is very
important for the practitioners of the real estate industry. The rental fees and
total sales of the shopping centers are a very important for the company.
A. Rent Analysis
One of the tangible, essential points of shopping center valuation is the analysis of
rents. Approaching from the traditional financial perspective, the valuation of
shopping center or other real estate is based on the discounted present value
calculation of the respective center’s/ real estate’s future incomes (cash flows)
(Damodaran, 2006). This is important mainly for practitioners, and they very
often determine the market value of a shopping center according to this method.
In contrast, from a theoretical perspective, rent analysis deals with the variation in
time of base, fixed rents and percentage or overage rents. This is exactly why, in
the majority of rent analyses, this is analyzed as depending on the sales of the
shopping center in accordance with the different tenant types and profiles.
B. Sales Analysis
35
total sales of retail, service and entertainment units that operate within the
center. This is why, it worth discussing the performance of individual retailers,
tenants before the analysis of the aggregated sales and only then to move on to
the level of shopping centers.
Mejia and Benjamin (2002) conducted a comprehensive study about the factors
that determine the total sales of shopping centers. They found that, beside the
traditional, physical, spatial factors, the non-physical factors, such as retail image
and tenant profile mix, are also very relevant.
The modern commercial mall that layid down on total area of 1,500m2 will be
setting its service price as listed in table 6.2 below.
The sales schedules which detaile expressed in table 6.3 below the quanity of
service delivered and the income amount that generated by the shopping mall
from year one to three and after operates at the capacity of 75%, 85% and 100%
36
respectivelly and the price of service and goods will be increased by 5% after year
three because there will be fast economic condition and the inflation of service and
goods not increase than above percentage.
A. store m2 450
B. GYM
No of individuals served per month
(2shift) 1440
4 Unit cost per m2 per month 875 28,350,000.00 19,845,000.00 24,097,500.00 28,350,000.00
37
38
7. LAND CONSTRUCTION AND CIVIL WORK
Adama is capital city of the East Showa and Adama specal zone Adama . It is
located in the centre of the Region to the latitudinal direction, which characterizes
its advantageous economic geographic location (EGL). Alongside with that, its
measures and economy specialization as a whole and of separate components are
not fully appropriate to the existing conditions. The location of the mall will be
expected by the promoter well known the commercial center at Adama .
The main justifications behind the selection of this location are; that the promoter
likes
1,500 m2. The mall floor area is estimated to cover 900m2 and the remaining
1,500m2 is left for construction of, generator house, guard house, parking lot,
children play ground, swimming pool garden, shops and walk ways. The type of
buildings and its corresponding civil construction cost is given on Table 7.1 its cost
of construction is estimated to be 94.26 million of ETB.
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Table 7.1: Type of construction and its rate (birr/m2) list of building and civil works
and their costs
1.1 B2(Parking ) m2
2 Other facility
40
8. PROJECT IMPLEMENTATION SCHEDULE
The following figure shows the timeline to implement the project, which
implemented from October 2022 to September 2025 presented in table 8.1 below.
Table 8.1: Activity implementation Schedule from May 2021 to December 2024
41
9. ORGANIZATION AND MANAGEMENT
The framework of jobs and departments that make up any organization must be
directed toward achieving the organization’s objectives. In other words, the
structure of the Commercial Mall business must be consistent with its strategy.
Managers give structure to mall through job specialization, organization, and
establishment of patterns of authority and span of control.
The total manpower required for the commercial mall will be 470 persons worker
during the construction phase and after it. The manpower list and the
corresponding labor cost are shown in 9.4 of this document.
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amount of work to be performs; there exist auxiliary units under the general
manager.
Employees under each unit will be supervised by the department head that is
accountable for the general manager. General Manager is appointed by the board
of directors.
Fig: Organizational Structure for Lemessa Bote Lebeta Modern Commercial Mall
A. Executive Director
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Reporting the Mall status or performance to the Board of Directors.
B. Sales and Marketing Department Head
44
Maintaining the absence of issues between tenants among themselves for any
reason, and to take all possible measures to maintain calm and tranquility in
the Mall, and notifying the owner with the main emergency events.
Managing the operational process of the Mall, and working on their
sustainability and following-up the rest of the staff.
Submitting periodic reports to the Director General
D. Leasing and General service Department Head
The Leasing & General service head shall perform the following tasks:
Developing a plan for leasing within the Mall strategic plan, in consultation
with the Director General and Marketing Manager.
Clarifying and carrying out essential tasks for renting the mall, and bringing
in tenants, and thus generate income.
Allocating the required or permitted capital expenditure to the tenants.
Setting specific tasks to the Team Work, to ensure achieving the given and
specified dates for delivery.
Setting budget for the leasing activities in consultation with the Director
General and the Director of Administrative and Financial.
Developing a plan to deal with the vacant shops (not leased), and those their
lease contracts has expired.
Determining the potential increases on the rent cost since the beginning and
the duration of each contract, taking into account the rise in the annual price
“step - rent”.
Accelerating the leasing process by following-up the market and competitors,
and preparing appropriate proposals for the owner and the tenant.
E. Administration and Finance Department Head
The Leasing Administrator shall perform the following tasks:
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regulations, organizational and functional structure, tasks, competencies, job
description cards and a powers list.
Controlling the policies and procedures for financial plans, and making sure
they comply with the laws and regulations.
Budget preparation, including salaries, allowances, operating expenses,
maintenance and operation programs, projects under manufacturing and new
projects.
Following-up cashing and financial performance.
F. Administrative Officer / Accountant
The Administrative Officer performs the following tasks:
Conducting procedures and policies that ensure the attendance and departure
of employees, and paying their financial dues based on their attendance, and
recording the employees’ leaves.
Preparing the payroll for the Mall staff, and the reports on the discipline at
work.
Following-up periodic purchases and inventory.
Following-up the cleaning company and the security and guarding company
under the guidance of concerned Director / Official.
Among the workers 60% are recruited on contractual employee and it will be
recruited based on the construction capacity human resource utilization would be
70%, 85% and 100% from first to third years respectively as showed in table 9.1
below.
46
4 Junior Accountant 2 3,500.00 84,000.00
5 Cashier 4 3,000.00 144,000.00
6 Marketing Officer 1 1,200.00 14,400.00
7 Purchaser 1 1,200.00 14,400.00
8 General service 1 3,000.00 36,000.00
9 Guards/Security 24 1,200.00 345,600.00
10 Janitors 16 1,200.00 230,400.00
11 Electrician 3 3,600.00 129,600.00
12 Maintenance/plumber workers 3 3,600.00 129,600.00
13 Receptionist 3 3,000.00 108,000.00
14 Projector worker 2 2,800.00 67,200.00
15 Diver 2 3,000.00 72,000.00
16 Room worker 24 1,800.00 518,400.00
17 Gardner 24 1,800.00 518,400.00
18 Daily Labor(during construction) 357 3,900.00 16,707,600.00
Total 470 19,335,600.00
Benefit(20% of the basic salary) 3,867,120.00
Grand Total 23,202,720.00
Before inter or beginning the mall operation basic training in relation to service
delivery, finance and human resource management given by external consultancy.
Based on the HRM manuals competent and qualified employee recruited based on
mall operation schedules. For this training service the budget required is birr
275,000.00
The business will be uses external consultancy regularly which will be advice in
service management, financial resource and human resource management.
Running cost that required for the shopping mall presented in table 9.2 below its
cost estimated birr 1.19 million.
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Table 9.2: General and Administrative Expense
48
10. FINANCIAL STUDY AND ANALYSIS
The financial analysis of the Lemessa Bote Lebeta Modern Mall is based on the data
presented in the previous chapters and the following assumptions:-
The total investment cost is estimated Birr 128.01 million from this amount 76%
accounts fixed investment presented in table 10.1 below.
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2.4 Insurance premium one year 97,901
2.5 Repair and maintenance six months 293,702
2.6 Utility six months 100,000
Total Working Capital 30,110,073.82
Total Initial Investment 128,010,677.97
A. Source of Fund
The shopping center construction will be financed at local commercial bank and
equity contribution investor in the amount of 30% birr 38.40 million and the
remaining 70% birr 89.61 million will be financed through bank loan. The loan
interest rate in the calculation is bases on 12.5% and source of fund presented in
table 10.2 below.
The loan will be repaid within ten years after 3 years grace period within ten
years in installment base showed in table 10.3 below.
50
7 6/1/2027 83,515,657.78 4,611,840.74 4,611,840.74 1,166,819.86 3,445,020.88 82,348,837.92 25,024,248.52
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10.4. Project Financial Statements
This section defines certain key financial accounts used by this proposal from the
standard. The definitions are provided in two main sections, (1) those found on the
income statement; and (2) those found on a balance sheet. There is additional cash
flow statement which used to measure the business liquidity position.
The income statement is also known as the profit and loss statement. It is a flow
statement that summarizes all financial activity during a stated period of time,
usually a month, quarter or year. It displays all revenues and expenses for a stated
over five years. The bottom line of an income statement is the net income (or net
profit or surplus) for the period. We expect to make a reasonable after- tax profit
(loss) of ETB 2.87 million and 23.44 million in year one to ten respectively in the
projected profit and loss shown in the next statement. This is before the owner’s
drawings. Any owner’s drawings will be contingent on performance being better
than that expected in the plan and expected to earn monthly income in the form of
owner drawing account.
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Lemessa Bote Lebeta Modern Commercial Mall
Projected Profit and Loss Statement
For the Period of Year 1 to 10
Particulars Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7 Yr-8 Yr-9 Yr-10
Revenue
Net Revenue from Mall service 36,514,800.00 44,339,400.00 52,164,000.00 54,772,200.00 57,510,810.00 60,386,350.50 63,405,668.03 66,575,951.43 69,904,749.00 73,399,986.45
Total Revenue 36,514,800.00 44,339,400.00 52,164,000.00 54,772,200.00 57,510,810.00 60,386,350.50 63,405,668.03 66,575,951.43 69,904,749.00 73,399,986.45
Cost of Service
Salary and benefit 16,241,904.00 19,722,312.00 23,202,720.00 24,362,856.00 25,580,998.80 26,860,048.74 28,203,051.18 29,613,203.74 31,093,863.92 32,648,557.12
Running cost 1,004,040.60 853,434.51 1,004,040.60 1,054,242.63 1,106,954.77 1,162,302.50 1,220,417.63 1,281,438.51 1,345,510.44 1,412,785.96
Depreciation Expense 5,413,704.17 5,413,704.17 5,413,704.17 5,413,704.17 5,413,704.17 5,413,704.17 4,713,356.25 4,713,356.25 4,713,356.25 4,713,356.25
Total Expense 22,659,648.77 25,989,450.68 29,620,464.77 30,830,802.80 32,101,657.73 33,436,055.41 34,136,825.06 35,607,998.50 37,152,730.61 38,774,699.33
Income before Finance Charge 13,855,151.23 18,349,949.32 22,543,535.23 23,941,397.20 25,409,152.27 26,950,295.09 29,268,842.97 30,967,952.93 32,752,018.39 34,625,287.12
Finance charges 10,979,802.07 10,345,636.58 9,628,406.57 8,817,232.05 7,899,807.96 6,862,217.45 5,688,720.85 4,361,516.85 2,860,472.48 1,162,817.73
Income before profit tax 2,875,349.17 8,004,312.75 12,915,128.66 15,124,165.15 17,509,344.31 20,088,077.64 23,580,122.12 26,606,436.08 29,891,545.90 33,462,469.39
Net Income 2,875,349.17 8,004,312.75 12,915,128.66 10,604,915.60 12,274,541.02 14,079,654.35 16,524,085.48 18,642,505.26 20,942,082.13 23,441,728.58
The cash flow projections for the year as shown in cash flow statement that a positive cumulative projected cash
flow birr 38.40 million to birr 6.22 billion in year one to year ten respectively. The year-end cash surplus of after
the owner has forecasting additional term loan financing of birr 89.60 million. That will be repaid within ten
years. The owner has further considering 5% changes receipt & payment to see the impacts of the changes. In our
cash flow projection, we have assumed the whole birr 89.60 million financing for investment has come from a
bank loan. We have assumed & allowed for interest on the outstanding amount for the whole periods.
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Lemessa Bote Lebeta Modern Commercial Mall
Projected Cash Flow Statement
For the Period of Year 1 to 10
Particulars Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7 Yr-8 Yr-9 Yr-10
Cash Inflow
Income before Tax 2,875,349.17 8,004,312.75 12,915,128.66 15,124,165.15 17,509,344.31 20,088,077.64 23,580,122.12 26,606,436.08 29,891,545.90 33,462,469.39
Depreciation 5,413,704.17 5,413,704.17 5,413,704.17 5,413,704.17 5,413,704.17 5,413,704.17 4,713,356.25 4,713,356.25 4,713,356.25 4,713,356.25
Total cash inflow 97,896,527.91 13,418,016.91 18,328,832.83 20,537,869.31 22,923,048.48 25,501,781.81 28,293,478.37 31,319,792.33 34,604,902.15 38,175,825.64
Cash Outflow
Employee benefit 3,248,380.80 3,944,462.40 4,640,544.00 4,872,571.20 5,116,199.76 5,372,009.75 5,640,610.24 5,922,640.75 6,218,772.78 6,529,711.42
Profit Tax payable - - - 4,519,249.54 5,234,803.29 6,008,423.29 7,056,036.64 7,963,930.82 8,949,463.77 10,020,740.82
Loan Repayment 4,841,608.45 5,475,773.94 6,193,003.95 7,004,178.46 7,921,602.56 8,959,193.07 10,132,689.67 11,459,893.67 12,960,938.03 14,538,733.62
Total cash Outflow 105,990,593.40 9,420,236.34 10,833,547.95 16,395,999.20 18,272,605.61 20,339,626.11 22,829,336.54 25,346,465.24 28,129,174.59 31,089,185.86
Cash Surplus(Deficit) (8,094,065.49) 3,997,780.57 7,495,284.88 4,141,870.11 4,650,442.86 5,162,155.70 5,464,141.83 5,973,327.09 6,475,727.57 7,086,639.78
Beginning cash balance 38,403,203.39 38,403,203.39 42,400,983.96 49,896,268.84 54,038,138.95 58,688,581.81 63,850,737.51 69,314,879.34 75,288,206.44 81,763,934.00
Ending Cash Balance 38,403,203.39 42,400,983.96 49,896,268.84 54,038,138.95 58,688,581.81 63,850,737.51 69,314,879.34 75,288,206.44 81,763,934.00 88,850,573.79
Cumulative cash balance 38,403,203.39 80,804,187.35 130,700,456.19 184,738,595.14 243,427,176.95 307,277,914.46 376,592,793.81 451,881,000.24 533,644,934.24 622,495,508.03
The balance sheet of the firm will shows what the asset liabilities and owner’s capital for specific date especially end
of the year, because the firm’s fiscal year runs from July 1 to June 30 in E.C year one to ten each year.
54
Lemessa Bote Lebeta Modern Commercial Mall
Projected Balance Sheet
For the Year ends June 30, each year’s 1 to 10
Particulars Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr-6 Yr-7 Yr-8 Yr-9 Yr-10
Asset
Current Asset
Cash 14,746,359.80 17,051,549.96 18,982,589.05 19,322,824.81 18,273,588.54 33,350,491.67 17,605,874.09 16,510,736.08 13,826,739.28 31,040,321.85
Total Current Asset 14,746,360 17,051,550 18,982,589 19,322,825 18,273,589 33,350,492 17,605,874 16,510,736 13,826,739 31,040,322
Fixed Asset
Land and Building 89,553,769 84,840,413 80,127,056 75,413,700 70,700,344 65,986,988 61,273,631 56,560,275 51,846,919 47,133,563
Vehicles and Generator 2,744,000 2,058,000 1,372,000 686,000 2,744,000 2,058,000 1,372,000 686,000 2,744,000 2,744,000
Equipment and furniture 129,131 114,783 100,435 86,087 71,740 57,392 43,044 28,696 14,348 129,131
Total Fixed Asset 92,426,900 87,013,196 81,599,492 76,185,787 73,516,083 68,102,379 62,688,675 57,274,971 54,605,267 50,006,694
Total Asset 107,173,260 104,064,746 100,582,081 95,508,612 91,789,672 101,452,871 80,294,549 73,785,707 68,432,006 81,047,016
Liability
Employee benefit 3,248,381 3,944,462 4,640,544 4,872,571 5,116,200 5,372,010 5,640,610 5,922,641 6,218,773 6,529,711
Total current Liability 3,248,381 3,944,462 4,640,544 9,391,821 10,351,003 11,380,433 12,696,647 13,886,572 15,168,237 16,550,452
Tearm loan 84,765,866 79,290,092 73,097,088 66,092,910 58,171,307 49,212,114 39,079,424 27,619,531 14,658,593 49,212,114
Total Liability 88,014,247 83,234,555 77,737,632 75,484,731 68,522,310 60,592,547 51,776,071 41,506,102 29,826,829 65,762,566
Capital
Lemessa Bote, Capital 38,403,203 38,403,203 38,403,203 38,403,203 38,403,203 76,806,407 38,403,203 38,403,203 38,403,203 38,403,203
additional investment (22,119,539.70) (25,577,324.94) (28,473,883.58) (28,984,237.21) (27,410,382.81) (50,025,737.50) (26,408,811.14) (24,766,104.13) ########### (46,560,482.78)
Net Income 2,875,349 8,004,313 12,915,129 10,604,916 12,274,541 14,079,654 16,524,085 18,642,505 20,942,082 23,441,729
Total Equity 19,159,013 20,830,191 22,844,448 20,023,882 23,267,362 40,860,324 28,518,478 32,279,605 38,605,177 15,284,449
Total Liability and Capital 107,173,260 104,064,746 100,582,081 95,508,612 91,789,672 101,452,871 80,294,549 73,785,707 68,432,006 81,047,016
55
10.5. Financial Analysis and Evaluation
A. Profitability
Based on the projected profit and loss statement, the project will generate a profit
throughout its operation life. Annual net profit after tax will grow from Birr 2.87
million and 23.44 million during the life of tenth years. Moreover, at the end of the
project life the accumulated cash flow amounts to Br. 6.22billion at the end of tenth
year.
B. Ratios
In Financial Analysis Financial Ratios and Efficiency Ratios are used as an index or
yardstick for evaluating the financial position of a firm. It is also an indicator for the
strength and weakness of the firm or a project. Using the year-end balance sheet
figures and other relevant data, the most important ratios such as return on sales
which is computed by dividing net income by revenue, return on assets (operating
income divided by assets), return on equity (net profit divided by equity) and return
on total investment (net profit plus interest divided by total investment) has been
carried out over the period of the project life and all the results are found to be
satisfactory. The common Ratio at year three is presented in the next table 10.4
below.
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C. Break-Even Analysis
D. Payback Period
The payback period, also called pay off period is defined as the period required
recovering the original investment outlay through the accumulated net cash flows
earned by the project. Accordingly, based on the projected cash flow it is estimated
that the project’s initial investment will be fully recovered within 2nd years.
Net present value (NPV) is defined as the total present (discounted) value of a time
series of cash flows. NPV aggregates cash flows that occur during different periods
of time during the life of a project in to a common measuring unit i.e. present
value. It is a standard method for using the time value of money to appraise long-
term projects. NPV is an indicator of how much value an investment or project
adds to the capital invested. In principal a project is accepted if the NPV is non-
negative. Accordingly, the net present value of the project at 12.5% discount rate
is found to be before tax birr 150.92 million and after tax Birr 67.17 million
which is acceptable.
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10.8.6. Internal Rate of Return
The internal rate of return (IRR) is the annualized effective compounded return
rate that can be earned on the invested capital, i.e., the yield on the investment.
Put another way, the internal rate of return for an investment is the discount rate
that makes the net present value of the investment's income stream total to zero.
It is an indicator of the efficiency or quality of an investment. A project is a good
investment proposition if its IRR is greater than the rate of return that could be
earned by alternate investments in a bank account. Accordingly, the IRR of this
project is computed at discount rate of 12.5% is before tax is 78% and after tax
64% indicating the viability of the project.
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11. ENVIRONMENTAL IMPACT OF THE PROJECT
Currently the issue of environment and envelopment get due emphasis and thus
every citizen called to exert their maximum effort for fighting against any negative
impacts on the environment so as to result in a win-win solution on common
agenda that is creating environmentally friendly business environment. Therefore,
Lemessa Bote Lebeta Modern Commercial Mall does cause very less/insignificant
adverse negative impact on the environment during implementation and operation
phase. Even though, if the project adverse within the environment the promoter
must be use modern technology, that it mitigate (protect) Environmental negative
impacts.
Based on the foregoing presentation and analysis, we can learn that the proposed
project possesses wide range of benefits that complement the financial feasibility
obtained earlier. In general the envisaged project promotes the socio-economic goals
and objectives stated in the strategic plan of the Adama City as well as promote
tourisms of the country. These benefits are listed as follows Lemessa Bote Lebeta
Modern Commercial Mall.
A. Profit Generation
B. Tax Revenue
In the project life under consideration, the region will collect about birr
49.75million from income tax (i.e. excluding income tax, sales tax and VAT). Such
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result create additional fund for the regional government that will be used in
expanding social and other basic services in the region.
As any business project this project can be faced by different risks at different
level. So, as business the following risks are expected to face Lemessa Bote Lebeta
Modern Commercial Mall during its implementation and operation.
To deal with the above possible risks that are external and unforeseen factors and
have their own effect on the life business and its smooth operation, the following
assumptions are set to manage their effect as a risk.
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Mall through print media to keep new customers know about our machine
and by refreshing existing clients.
The risk of the sudden shut off power will affect our production. So, Lemessa
Bote Lebeta Modern Commercial Mall is ready to manage such risk through
having power generator and make it stand by for immediate solution.
Since we are working with electric we feel that there might be a risk of
getting fire and being flooded. So, we planned to manage such risks through
purchasing insurance facility from the potential insurance institution that
have insurance coverage for such risks.
11.3.1. Conclusion
At the end of the study of this project proposal analysis interpretation of data and
facts collected from the project area based on marketing principles. The followings
are conclusion made:
Lemessa Bote Lebeta Modern Commercial Mall needs plot of land 1,500
m2 from Adama City, in well-known commercial center in Adama where
this innovative idea changed in to reality,
Lemessa Bote Lebeta Modern Commercial Mall has lack of finance to fund
this project and needs financial assistance as a loan from the potential
bank to cover the partial cost of the project expenses.
Lemessa Bote Lebeta Modern Commercial Mall 70% loan from bank and
the remaining 30% will be from the owner’s contribution.
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11.3.2. Recommendation
To this end the changing of this sacred idea into practice will be effective if the
critical and supportive assistance will be given to the following recommendation to
the points raise in the conclusion section of this project study.
Lemessa Bote Lebeta Modern Commercial Mall should have plot of 1,500
square meter land from the Adama City administration specifically at the
center of city especially old house under government ownership and
administered by Kebele to change this innovative idea in to reality.
Lemessa Bote Lebeta Modern Commercial Mall should have 70% collateral
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