BUSINESS DEVELOPMENT PLAN

FRUIT MASTER JUICE COMPANY - FMJC

SUPERVISOR: PROF. NIRMAALYA BISWAS

ACKNOWLEDGNEMENT
I would like to use this opportunity to extend my gratitude to all individuals who contributed
towards successfully commencing and completing my Business Plan in my final semester of my
MBA. I am extremely grateful for the guidance as well as constructive criticisms during the
period of doing my business development plan. My appreciation goes to them for unearthing my
flaws and providing their views on the various issues and shortcomings that my project had.
I would like to express my utmost gratitude to my supervisor Professor NirmaalyaBiswas of
Indian School of Business and Computing for his valuable guidance. My sincere gratitude also
goes to Professor Rekha H., also of India School of Business and Computing who guided me
during my first semester Entrepreneurship project, which served as the springboard for which I
did my Business Development Plan in the final semester
My final thanks go to Enoch Lumor and Gloria Agbemassie, colleagues of mine who proofread
my work and immensely helped me in collecting data for the research
 TABLE OF CONTENTS
Project Blueprint …………………………………………………….. 4
Executive Summary …………………………………………………….. 5
Chapter One – Introduction …………………………………………….. 6
Chapter Two – The Business Concept …………………………….. 11
Project Blueprint

Introduction to the Business Idea

FMJC operated in Accra

The Business Concept

Vision, Mission, Product Brief, Sales Ex

Feasibility

Market Industry Financial

Feasibility Feasibility Feasibility

Product Organizational
Feasibility Feasibility

Strategic Analysis and Business models

ADL Matrix Strategic SWOT Analysis

Diamond
Value Chain Kano’s Model
Ansoff Matrix

Business Plan
 EXECUTIVE SUMMARY
This document provides a detailed description of an innovative business idea, Fruit Juice Master
Company(FMJC) that is to be set up in Accra – Ghana, within two years. The business is a
partnership formed by five principal partners, all of whom are native Ghanaians. The company’s
business model will be to produce fruit juices directly from organically grown assorted fruits,
aimed at providing health benefits for consumers, with emphasis on individuals suffering from
diabetes, young children, and adults who are health conscious. The business will be ideally
propagated in the capital city of Accra, which has a population of 5.3 million inhabitants, with a
demographic profile of occupants being gainfully employed in the service industry (StatsGhana,
2015).
The beverage industry has enjoyed rapid growth, as result of standardization of consumer tastes
since Ghana became liberalized. With the government of Ghana signing the Economic
Partnership Agreement, trade barriers between Ghana and the West have been lowered to the
bare minimum, serving as a catalyst for rapid importation of carbonated assorted drinks
(ActionAid – Ghana, 2013).
Most consumers in the country have become health conscious, following the recent reports
published by Ghana Health Services (2012), which points out a 35% increase in the number of
diabetic cases between 2009 to 2011.
FMJC will provide healthy fruit juices, as an alternative to carbonated and highly acidic drinks
that are health hazardous to many.The business will have two main modus operandi, the first
which will be stationed outlets in schools, hospitals and government ministries, whiles the
second will be sold through mobile vans that run within the parameters of the city.
A market feasibility study, conducted in the third chapter of this document attests that although
Ghanaians are fruit fanatics demand has fallen in recent years, largely as a result of little
innovation regarding how fruits are sold and served, as well as high number of as carbonated
drinks in the market, both domestically produced and those imported.The study also points out
that customers find it ideal to purchase a cup of fruit juice at GH 2.5 cedis, slightly lower than
established brands of carbonated drinks. At the given price, the company is expected to generate
sales revenue of GH 10,126,188 in the first year. This is however expected to increase by 20 %
during the second year, when the company expands its branches.
With the feasibility established, strategic models are applied to determine the core capabilities of
the firm. Using Porter’s value chain model, it is concluded that having strong and reliable raw
material supply, competent human resource practices and effective sales and marketing, enables
the company to establish a sustainable competitive advantage in the industry. Using ADL’s
matrix, it can be conceptualized that food and drinks industry is in the maturity stage and
therefore the company will be placed in the dominant competitive strategy. The fifth and closing
chapter of this document gives an overview of the business plan, whiles pointing possible risks
that may impede the business and critical factors that will guarantee success
CHAPTER ONE
FRUIT MASTER JUICE COMPANY
INTRODUCTION
There have been calls for the people of Ghana to increase their consumption of fruits. The
importance of eating fruits has long been regarded as a measure of certainty to reduce sporadic
illnesses among people. Health practitioners have pointed out that consuming an average of two
cups of natural fruit juices each day(equivalent to two medium 100 grams of oranges) provides
the body with enough metabolism and vitamins, significantly important for growth (USDA,
2011). Even though these messages have been well received, there hasn’t been much impact in
fruit consumption, as consumptionfigures tend to be dwindling with no foreseeable change in the
short run.
Much of the low consumption levels have come as a result of the relatively high number of
carbonated drinks that have saturated the market. With the likes of Coca Cola, Pepsi and other
local and multi – national brands, using promotional strategies with campaign messages directed
towards convincing the populace that carbonated drinks contain fruit and vitamin supplements,
demand for raw fruits have stagnated.
Lack of innovation has also played a role in declining demand for fruits. In Ghana, fruits are still
popularly sold by the roadside, with sellers mostly children who have either dropped out of
school and have bad hygiene knowledge. A report by Mensah et al (2012) concluded that 42
percent of sellers on food, fruits and snacks in Ghana did so with their bare hands leading to the
risk of bacterial enteropathogens. Even though carbonated drinks have gained popularity, with
consumers finding a plausible reason that is a substitute for fruits, they are manufactured with
high contents ofsweeteners, which Buckman, (2011) points out that weakens the pancreas.
Fruit Master Juice Company is therefore aimed at providing consumers with innovative fruit
juices that are prepared exclusively based on the customer’s choice, throughthe selection of their
own mix of natural fruits. It will take an estimated three minutes to drain the juice from the
selected fruit of the customer’s choice and serve to the customer, either hot or cold (through ice
cubes). Customers will have choices among sugar cane, mango, orange, pawpaw, water melon
and pineapple. A mobile van will be used as an addendum to the business, which will otherwise
be stationed at convenience places. The mobile vans will carry only fruits that are highly liquid
and therefore easier to reduce customer waiting time. Coconut, pineapple and sugar – cane will
be the main fruits served in the mobile vans. They will be sold usually along the principal streets
of Accra, and areas of traffic congestion.
Domestic production of sugar cane will be a boost to this business. With this fruit well consumed
in Ghana during the primitive years of the new millennium, domestic consumption has decreased
not because of a lack of interest but because of the traditional way of consuming it which
otherwise soils clothes, cause toothache or leaves a lot of roughage as waste. With 150,000 tons
of sugar cane produced annually, the fruit does not fetch the country significant foreign income,
being 76th best exporter of Cocoa, contributing a meager 0.004% of world sugar cane production
(Slomonski, 2013). Domestic consumption therefore appears the most attractive choice.
Scenario Selection
This will be an innovative start – up business, the first of its kind in Ghana. It will be formed,
owned and controlled by three partners, all of whom have competences that can aid the growth
of the business. The business will within the first few years operate in Accra, the capital of
Ghana, which has an estimated population of 5.5 million people and an area of 185 km² (Ghana
Districts, 2013)
Aim and Objective of this work
This project presents a blueprint of Fruit Master Juice Company, a business that is expected to be
established in Ghana within the next three years. The project will conduct an extensive research
on the feasibility of this business idea in the market. The market, industry, financial and
operational feasibility of the business idea is analyzed, whiles the external factors such as
PESTEL and Porter’s 5 forces will determine how political roles as well as socio – economic
roles play in shaping up the industry. Below is a vivid description of the objectives of this
business development plan:
 Determine the overall feasibility of fruit juices made from fruits with no added
sweeteners in Accra – Ghana
 Estimate the total cost involved in setting up the business, with references to the cost
drivers
 Forecast the sales revenue of the business after 5 years and the investment returns of all
stakeholders.
Structure of the Report
The building blocks of this report comprises of four chapters, each providing different facets of
how the report is to be conducted. The leading chapter provides an overview of Fruit master
Juice Company, laying emphasis on the nature of fruit consumption in Ghana and demand
forecast.
In the next chapter, the idea of the business and its concepts are fully elaborated. The
organizational purpose and strategic intent are defined, relative to the industry within which the
company would be operating in.Brief descriptions of the products and services that will be
offered are also defined in this section, with the potential customers demarcated. The final part of
this chapter will include the position of this company comparative to its existing and potential
rivals, as well the company growth forecast
The third chapter of this document attempts to justify the degree of market feasibility of FMJC.
Among the areas of interest in this chapter will be determining how the products and services
that will be offered by FMJC will be readily acceptable in the current market. Questionnaires are
used as the main form of primary research tool, which accompanied by secondary data is
analyzed and conclusions drawn.
The fourth chapter of this report commences with applications of various business models, drawn
from strategic management, marketing and human resource. The aim of these model applications
is to gain an insight of the capabilities of the company, its external market and the strategic
choices available to FMJC in order to gain a sustainable competitive advantage
The final chapter of this plan provides an elaborate view of the chapters that precedes it. The
manner in which this company plans to execute this business is described, pointing out any
blockades that can be experienced in retrospect.
CHAPTER TWO
The Business Concept
This business, being part of the food and snack bar industry will be called Fruit Master Juice. Its
name is chosen strategically to communicate to potential customers about the variety of fruits
that would be made available to interested individuals who wish to enjoy assorted juices, made
from such fruits, with no added preservatives or sweeteners. They would be served in disposable
cups, labeled with the company’s name and logo. Customers can consume such juices either
warm or served cold state, as Ghana averages 288°C for most of the year (Ghanaweb, 2014).
The business will ideally exist in two forms: one which will be as a stationed fruit juice bar, and
another which will be run on a mobile van.
STATIONED BAR FOR FRUIT MASTER JUICE

The stationed bar is to be situated at vintage places in schools, hospitals and ministries. The
mobile van on the other hand will be maneuvered around the city of Accra, with areas of traffic
congestion being the principal target places. This will also ensure greater levels of penetration of
the product among target customers.
The company will hire workers with a minimum qualification of high school education. They
will be taken through training on how to serve customers and provide effective customer services
to individuals who purchase from the company.Employees will also be trained on how to make
the fruit juice from natural fruits, without adding any sweeteners to them. The aim will be to give
the products an exquisite taste, to safeguard against its brand equity, seeing that the product can
easily be imitable.
MOBILE VAN FOR FRUIT MASTER JUICE

With reference to the company’s target customers, relationship marketing will be the main form
of promotion, conducted through word of mouth communication on customer forums such as
Facebook, Twitter, Hi5 and others.The rationale behind this tactic is to encourage customer
input, which will be fundamental in securing a long lasting product taste and service quality that
will ward off competitors when they emerge. This will also significantly reduce cost of
promotion.
The company shall strategically embed Corporate Social Responsibilities to complement
promotion. Particularlywithin schools and workplaces that the Juice bars will be stationed, talk
programs and seminars about the importance of consuming fruits will be held, not only to draw
them to purchase the products, but to educate them. For those stationed within hospitals, after
seeking permission from doctors and depending on their levels of sickness, free fruit juices will
be served to patients to help provide vitamins needed for fighting against diseases.
Mission of Fruit Master Juice Company
 To create unique and innovative healthy products, aimed at championing the health of
diabetic patients, who currently make up 45% of the Ghanaian populace.
 To boost the immune system of children and young adults, who have otherwise suffered
from the consumption of carbonated drinks that have thriven the economy.
  To improve upon the satisfaction obtained by customers by offering quality fruit juices
that reflects the prices paid.

Vision of Fruit Master Juice Company

 To make good use of production of fruits such as sugar – cane, thereby encouraging
increase in domestic production, and creating value for farmers who are into such
production.
 To expand the core business of FMJC into other regions in Ghana
 To achieve growth at a profitable and sustainable rate, achieved through organically
produced fruits.

Product Brief
The products offered for sale are essentially fruits juices derived from natural fruits in their raw
states, with no added preservatives, color or sweeteners. Customers will be able to choose a
maximum of three fruits which will be combined together to provide a unique taste. They will be
served in disposable cups either hot or cold.
Positioning
There already exist high earned snack and drink bars in the metropolis that offer customers a
variety of fruit juices albeit with sweeteners and preservatives. These snack bars are however
structured as restaurants or pubs which offers such menu to customers at premium prices. Fruit
Master Juice Company however will be structured to provide value for the masses, which are
middle income and price sensitive at economy pricing.
Sales and Growth Forecast
The business is set upon the parameters of ambition. Within the next three years, the company
expects to control between 18% and 25% of the market. The business model is structured in such
a manner that product sales will come from the strategic places where the immobile shops are
stationed as well as the route that the mobile ones operate. The fruit juice shops will be set up
among primary and secondary schools in Accra that has an average student population of 1200.
Sales within these places is expected to be commence with 20% of pupils but reach at least 35%
by the third year of inception. Other locations, such as those in hospitals and government
ministries is expected to witness rapid growth, since customers that segment are better educated
on the benefits of consuming fruit juices.The mobile van will also move through areas of traffic
jam, where road users are likely to purchase such juices to soothe their nerves. By the end of the
5th year, an estimated GH 21,700,000 of sales revenue is expected from the business, with a 20%
return on investment.
CHAPTER THREE
Feasibility
Conducting a feasibility test is very important, even more so for a start - up company. This is
because there is the need to effectively understand the market within which the company is
operating in, and conversely develop an understanding of how well the product or service
conforms to buyer expectations, leading to profitability. How viable the business idea is, will
also significantly induce potential investors, to provide funds for the business, with the
conviction that they would obtain favorable returns from their investments.
The following are the structure upon which this chapter will be based:
 The Product/Service feasibility
 Market Research – this would disinter the market segments targeted, the as well as the
preferences of the customers, through understanding their buying behavior
 Industry overview - with little barriers towards entry in the food and snacks industry, an
analysis will be made to determine how industrial forces can impede profitability and
sustainability of Fruit Master Juice.
 Finance – the projected trading and profit and loss accounts, balance sheet, cash flow
statement will be forecasted in this chapter.
 Organizational Structure – the structure and hierarchy of the organization will come into
play here, as well as the culture, which must reflect the society

3.1 MARKET RESEARCH

Primary and secondary research methods are used to determine feasibility of the product idea in
the market. According to Driscoll (2011) primary research methods are used to ensure that the
data that is collected is unbiased and indeed reliable enough to make accurate decisions, based on
the product forecast in the market.

Paradigm that was Chosen:

This was a feasibility test, to discover how readily available demand exists for naturally prepared
fruit juices in Ghana. The Paradigm therefore took a positivist approach
Strategy of the Research
This was a survey, with the main instruments used to collect the data for this research being
interviews and questionnaires

Unit of Analysis
Accra was chosen as the location for which the feasibility test was made. The region was divided
into main suburbs with questionnaires distributed evenly among inhabitants in the suburbs.
These were the central, east and north suburbs, as well as the west and southern suburbs of Accra

Population and Sample Chosen for the research

There were 220 participants that partook in this research. A convenience sampling technique was
used with a 95 percent confidence interval as well as 5% standard error. 20 participants from
each suburb were chosen for this research, with their ages ranging between 16 to 60 years.

Validity
To ensure that data was unbiased, this researcher ensured that participants across each suburb
had no prior information about the research that was being undertaken. This was to ensure that
information was not relayed to other participants ahead of time, to influence their responses
Ethics
The consent of participants was seeked, after which agreement forms were mailed, signed and
scanned to ensure that each party was conversant of the terms of this research and respected the
confidentiality of it.

Limitation
Data had to be collected, compiled and analyzed within a month. This therefore did not allow the
researcher much time to seek a greater sample, large enough to validate data even more.

Data Analysis
Below is an analysis of the data obtained from the research:
Consumer Profile and Buying Behavior
This is the first objective of the market research. There is the need to gain understanding of the
expected buying behavior of the customers. To do so, segmentation and targeting is necessary.
Questionnaires and interviews were used as a measure of defining the profile of potential
customers
A total of 220 participants partook in this research. Below were the findings:
Gender
Male 115 54.2%

Female 105 45.8%

Total 120 100

Age

10 – 19 48 19.2%

20 – 40 94 57.5%

40 – 60 46 17.5%

Above 60 years 34 7.5%

Total 220 100

Marital Status

Single 73 40%

Married 82 48%

Divorced 36 9.1%

Other 29 3.3%

Total 120 100

Occupation

Students (University and above) 47 18.3

Private workers 60 29.2

Government workers 70 38

Unemployed 43 15

Total 120 100

Findings
The customer profile is fundamental as it plays a key role in determining the form of
marketsegmentation that should be used by Fruit Master Juice Company limited. From the data
collected, the responses show that there is no particular domination of any demographic variable
chosen for the research. There are almost even number male and female participants, with similar
figures for single and married. 92.5 percent of the participants that showed interest in Fruit Juices
fell between ages 10yrsand 60yrs, with 7.5 percent showing interest of consumers above 60yrs.
Like many other drinks in the market, mass segmentation will be used. This approach implies
that the product will not be targeted to any particular segment in the market. Based solely on this
data, individuals who possess the purchasing power to buy the products or have interest in
consuming fruits will be targeted. That being said, the secondary data analysis of this report will
be used to discover a niche market for our products.

Buying Behavior
According to Creswell (2008) consumer buying behavior describes the thought processes that are
involved in the consumer’s ultimate decision to purchase a product or not. This concept is
viewed as one of the most complex in marketing as it has the capacity to forecast the frequency
at which customer will purchase the products, leading to the potential of loyalty (Mead, 2001).
The parameters with which consumer buying behavior will be determined are their fruit
preferences and frequency of fruit consumption.

Fruit Preferences

160
140
120
100
80
60
40 Series1
20
0
Frequency of Fruit Consumption

Once a day 45 20%

Preferably after every meal 59 27%

Once or twice a week 72 33%

I take fruits but irregularly 44 20

220 100%

Findings
Participants were asked to have a maximum of three choices of the fruits that they most liked.
This will enable this researcher to stock based on the customer’s preferences. Oranges had the
highest frequency of choice. The marketing implication of this is that customers who purchase
oranges exhibit Habitual Buying Behavior. Habitual buying behavior describes the phenomenon,
where customers purchase a product often with little decision making process (Farooq, 2011).
The rationale behind high customer choice of oranges may be because Ghana has since produced
high quantities of oranges each year, making them the most common fruits nationwide with
663,170 tons of oranges produced in 2013 alone.
Pineapple, sugar cane and banana had similar customer preference, with domestic production of
pineapple in particular quadrupling in from 1996 to 2004 (71858 metric) and tripling by 2014
(Speg, 2015). In view of this, to generate regular favorable purchasing decision, customers will
have the choice of choosing a maximum of three fruits that can be mixed at the same time to
offer greater utility. For instance, a choice of banana, pineapple and sugar – cane will provide the
consumer with high volumes of Riboflavin and Magnesium from the banana contents, Vitamins
A and C from the orange, as well as B16 from Pineapple, all of which perform best to reduce
antioxidant, serve as an anti – inflammatory and boost the immune system (Wood, 2000). Apple
and grapes had the lowest frequency of customer choice. This is largely because they are not
grown on Ghanaian soil and re therefore imported. Since consumers showed little preference for
both, FMJC will avoid incorporating both in the business model. This will thereafter help in
reducing total overall cost of production.
Buying behavior can be complemented with purchasing behavior. The frequency at which the
consumer purchases a product will also illustrate their buying behavior. 80 percent of
participants stated their preference to consume at least one fruit a week, with 47 percent of them
admitting they will consume fruits more than once a day.
This business is however not about consuming fruits but fruit juices. There may be the tendency
for consumers to consume fruits but will not have the same taste for fruit juices. The research
therefore sought to discover if the consumers who had shown like for fruits will feel likewise for
fruit juices, made naturally from fruits.

Yes I would like that very 141 64.1%

much

No, I like to eat the 19 8.6%

roughage from my fruits

Undecided, it makes no 60 27.3%

difference

220 100%
 Yes I would like that
No I like raw fruits
Undecided

Findings
64% of the participants answered the affirmative when asked if they would like consume natural
fruit juices at the expense of fruits in their natural states. 27 % of the participants were however
undecided and will therefore take effort to convince them to make purchases of the fruit juices.
Personal selling tactics of informing these customers about the essence of consuming fruits will
be helpful in capturing such floating customers, since they are likely to exhibit Dissonance
Reducing Buying behavior. According to Sharma (2013), Dissonance Reducing Buying
Behavior is the buying behavior characterized by the customer taking high involvement in
making decisions about purchasing the product, as a result of less frequency in buying the
products. Such buyers place less emphasis on brands in general (Robert and Dennis, 2005). Only
9% of the participants however have their reservations towards consuming fruit juices, with such
consumers having a higher preference for consuming fruits in their natural state. With the
exception of participants that had stated emphatically that they had no interest in consuming fruit
juices, the rest of the participants were asked to provide an estimate of the number of glasses (1/2
liter) of fruit juice they are willing to consume per day.
How many glasses of fruit juice do you expect to consume in a day?

1 59 29.3%
2 56 27.9%

3 47 23.3%

4 20 10%

5 or more 19 9.5%

201 100%

Most participants showed their preference for consuming between 1 to 3 glasses of fruit juices
each day. In other words, at least 80.5% of consumers were willing to purchase at least one glass
of fruit juice each day.

Purchasing Power
Even though customers may have the willingness to consume FMJC products, their ultimate
decisions, regarding purchase or non – purchase decisionswill be affected by their purchasing
power. With this product significantly new in the market, it was prudent to discover how much
the average consumer is willing to pay for a ½ liter of fruit juice, made from the fruit(s) of the
consumers’ preferences. This is also important not only to discover the consumers purchasing
power, but also the company’s ultimate pricing decisions.
 Below 1 cedi
1 cedi to 1.5 cedi
1.5 cedis - 2 cedis
2 cedi - 2.5 cedis
Above 2.5 cedi

The mode price that participants had opted was within the range of 1.5 cedis to 2 cedis. This
represents 31.4% of the participants. On the other hand, it is no easy decision to set prices based
on this as another 35% of the participants are willing to pay above the mode price and another 35
percent are willing to pay below the mode price. To counter this, the quality of fruit juices may
be altered, based on the customers’ purchasing power. Price discrimination strategy will be used.
According to Banwari(2008) price discrimination refers to the setting of differentiated prices in
different markets based on the relative differences in customer purchasing power. From the data
collected, it was discovered that customers willing to pay above GH 2.5 cedis were from affluent
suburbs in the city, whiles those who proposed to pay lower than GH1.5 cedis live in low in
come suburbs
3.2 Product/Service Feasibility
Neither snack bars nor carbonated drinks are new in Ghana. The likes of KFC, Smoothies, Coca
Cola, Frutelli, Minutes Maid among others have all been well established in the country.Their
sizeable market share over the last few years is evident of the taste that customers have
developed for fruit juices and drinks.
The biggest problem however faced by most people in the country is the growing concern for the
quantity levels ofcarbonated drinks that are consumed. These are simply known as soda. Soda
consumption, led by the world famous Coca Cola and Pepsi have been a concern the world over,
with Ghana no exception. Olson (2014) reported that in the United States alone, Soda is the most
consumed substance only after water, with an average of 57 gallons consumed by each
individual per year. In Ghana for instance, it has become a norm for children to carry soda to
school or for adults to be served soda after every meal. A report by the Ghana Health Services
(2011) declared that high intake in soda, increased the probability of high blood pressure,
increasing their risk of suffering from heart attacks. Blood sugar and obesity are also side effects
of soda intake (Bristor and Brock, 2006). For example, fructose corn – syrup, which is consumed
as a cheap replacement for sugar cane has led to an increase in the level of metabolic risk
syndrome (Tucker, 2006).
The Government of Ghana, in 2006 introduced the School Feeding program, whereby pupils in
public schools were provided with food by government, with a fruit mandatorily added to it. This
was not only aimed at eating healthy diets, but increasing fruit consumption at the expense of
high soda intake(Abbey, 2011). This policy however failed to live up to expectations, as a result
of bad management. Though the government is still committed to increase fruit intake, lack of
funds and the advertising strength of carbonated drinks have hindered the fruits intake.

Product Concept
Fruit Master Juice Company will be the first institution of its kind, to produce fruit juices
produced from natural fruits grown in Ghana. Among the fruits from which the juices will be
extracted are oranges, mangoes, pineapple, banana and sugar – cane. Apple remains the only
fruit that is not grown in Ghana and will therefore be imported. The products and services will be
standardized and be operated in two dimensions. The first business model will be a stationed
center, where fruit juices are prepared and sold to customers, whiles a mobile van will carry and
sell the fruit juices within the confines of the city to ensure that there is greater penetration in the
market.

Target Customers
Diabetic Patients
A report by WHO (2012) pointed out that 70% of individualssuffering from diabetes were found
in countries that were low and middle – income. In the same year, Ghana was reported to have an
estimated 4 million people living with diabetes which constitutes 16% of the population. Lack of
logistics in Ghana implies that there remains an even a greater number of diabetic cases that are
left unreported. Diabetes Miletus: caused as a result of pancreatic damage through consuming
regular sugar, remains the most common form of diabetes in Ghana.Bagbin (2012) points out
that the number of people suffering from diabetes in Ghana is estimated to increase by 80%
before 2025.FMJC will therefore target diabetic patients by ensuring that the fruit juices that are
made are free of sugar. Juices made from Pear and Oranges for instance are good for diabetic
patients as they are low in Carbohydrates (Matthews, 2011)
Children
Fruit juices are important for the growth and enhancement of metabolism among children. Fruit
juices rich in Vitamins A, such as those prepared from Water Melon and Mangoes, are effective
for improving upon the eye sight of children. Fruit juices made from banana provide children
with a sound dietary fiber and potassium, that strengthens the kidney and nervous system of
children (Fresh for Kids, 2013)

Health Conscious People

Both the young and old have now become more conscious about their health than before. Most
people in Ghana have gradually resulted to becoming vegetarians, whiles others have completely
stopped the intake of food containing sugar, in order to protect against diabetes. Such people also
form the target of this business.

3.3 Industry Feasibility

The Ghanaian economy has been experiencing growth with its GDP estimated to reach $70
billion by the year 2018 (Stats-Ghana, 2015). Though traditionally an Agricultural - dependent
economy: the service and manufacturing sectors have been major contributors of GDP with both
sectors contributing 65% of the GDP of 2012 (Vaughn, 2013). The food and beverage industry in
Ghana forms part of this sector and operations in this industry is quite dependent of the external
environmental forces.
Political
As is the case with many countries, firms in the food and beverage industry need compliance
with political requirements such as the minimum wage legislation (Robertson, 2002). In January
2015, the government of Ghana announced a 16.7 % increase in daily minimum wage, moving it
from a previous GH 6 cedis to GH 7 cedis (Stats – Ghana, 2015). This implies that firms who
hire employees in any industry, food and beverage inclusive must pay workers a minimum of
GH 217 monthly. Another factor of political interest that has influence on this industry includes
rules and regulations regarding hygiene. Ghana have established strict hygiene rules to reduce
the threat of food and beverage contamination, as mandated by the Food and Drugs Authority,
empowered by the Public Health Act of 2012 (PHA, 2012). Since 2003, the Ghana Standard
Authority ensures that high risk food and beverages entering the country and already in the
country is inspected, with emphasis on labeling (GSA, 2012). All food and beverages must
contain a description of the ingredients used in the manufacture of the products
Economic Factors
A report by the Economist (2010) suggests that even though most countries were affected by the
Global financial crises of 2008, food and beverages companies have experienced overall growth,
as a result of such companies focusing on low cost and convenience to the potential customers,
without compromising quality. Consumer preferences for eating and drinking out in Ghana have
been aided by the growth of the service sector and increase in consumer spending power (Opoku
et al, 2013). Most food and beverage companies in the country obtain their raw materials from
suppliers within the country. However the biggest economic challenge facing the country over
the past few years have been inflation and inability to generate power. Ghana has experienced
steep inflation, which in May 2015, was recorded at 16.8% (Stats – Ghana, 2015). This has led to
electricity and fuel prices to rise above 25 percent. Food and non – alcoholic beverage increased
by 7.2 percent with CPI moving from 1 percent to 1.8 percent. Blue Skies energy drink, a
beverage company in Ghana announced in April 2015 to lay off 1,000 workers as a result of
erratic power supply (Hope, 2015).
Social Factors
The increase in the Human Development Index of Ghana has seen more consumersbecome more
aware of their health, as well as foods and beverages that they consume. Many consumers are
more cautious about consuming food and drinks with less calorie contents and also pay attention
to reading labels on the products, before making purchasing decisions. The Association of Health
Care in Ghana (2011) criticized most food and beverage companies, for targeting children and
teenagers who were ignorant on the contents of what they consumed and fell prey to spectacular
advertisement by such companies.
Technology
Technology has played a significant role in the food and beverage industry in Ghana. Until
recently, this was a particular industry that had the least technological services embedded in
them for growth. However, more recently, companies have established ATM services in their
place of service delivery, allowing customers to make withdrawals. Also, such firms have made
it possible for consumers to make orders online and have used social media as a way of getting
closer to customers (Wood et al, 2007)
Legal
The legal factors of the industry work in line with political factors that shape up the industry. The
government of Ghana operates and monitors the activities of companies in the industry, through
the Ghana Tourist Board. The Board established the Quality Assurance department that make
periodic checks, to ensure that all companies are first of all registered and have permit from the
Ghana Tourist Board, and are complying with government rules (Ghana Tourist Authority, 2015)
Environmental
As with many food and beverage companies, there have been the campaigns to increase green
production. Most companies are encouraged to make use of recycling especially in their
packaging.

Porter’s Five Forces

Threats of New Entrants- High
The threats of new entry in Ghana, as far as the food and beverages industry is concerned is
perhaps the single industry in Ghana, where threats of entry is highest. Apart from the large multi
– national companies that have found the country feasible enough to enter, threats of entry also
come from SME’s which open up ventures at places of convenience. Many of such are in the
form of roadside sellers. Big players such as Barcelos, Turkish and Armenians pubs and
restaurants, KFC, Peter Pan, Chicken Republic among other have all secured a reasonable market
share. Entry into the industry in Ghana was so appealing that Kendrick(2013) reports that
MacDonald’s are exploring the possibility of entering the Ghanaian market. Threats of entry is
therefore high, as there are few rules and barriers preventing entry
Threats of Substitutes – High
Many of the food and beverage firms produce homogenous products and services, thereby
making their products and services standardized. This makes the industry filled with a lot of
substitute products and services. There are direct, indirect and latent competitors in the market,
offering consumers not just substitutes but alternatives. Direct competitors of Fruit Master Juice
Company include the likes of Ceres, Minutes Maid, and Frutelli among others, whiles coca cola
and Pepsi still control a high marker share
Rivalry
Rivalry within the beverage industry is high in Ghana. Lack of strict importation measures for
example has made it easier for exotic brands to proliferate the market. Whiles some have gone
through scrutiny by the Ghana Food and Drugs Board, other have made it into the country
through gray market. Rivalry is therefore intense and most competitors in this industry compete
based on price wars.
Bargaining power of Buyers – Medium
Due to the nature of the industry, the bargaining powers of buyers are uneven. High earned food
and beverage companies such as Cherries, Barcelos, Smoothies et al command high sovereignty
robbing customers of bargaining power. On the other hand, buyers of roadside sellers and local
drinking bars, have power enough to influence prices. The bargaining power of buyers is also
influenced by the switching costs, which in this industry is relatively low. Customer loyalty has
also played a role in reducing bargaining power eg. Coca Cola
Bargaining of Suppliers – low
Suppliers have a low bargaining power. This is largely because Ghana is still having a high
agriculture presence and therefore manufactures obtain all their raw materials domestically.
Because there are many of such suppliers, their bargaining power is low

3.4 Organizational Feasibility

Although the business model is to manufacture fruit juices directly from fruits in their raw state
to sell to customers, much emphasis will also be placed on the human capital and their
contributions to the success of the business. The idea is to equip employees, in methods of
preparing the fruit juices under strict and hygienic conditions, which will offer value to
customers. The employees are also expected to be eloquent and informed. The service blueprint
of FMJC demands that employees provide details about the nutritional value fruits
customershave chosen. The management style employed will be dependent on different aspects
of the culture of Ghana. A management style that does not go down well with the cultural values
of Ghana may cause the firm to implode. Using Hofstede Cultural Dimensions, organizational
feasibility can be derived on the framework of power distance, masculinity, individualism and
avoidance of risk.
Based on PDI
This element of Hofstede’s framework points out the disparity that exists in society (Wengrzyn,
2012). It points out the extent to which the people understand there is superiority among
individuals that must be respected at all times, if not feared. Ghana’s score on this element is 80,
signifying much respect for authority (Hofstede, 2013). For this reason, FMJ Company will
centralize power, with the traditional goal setting method being employed to set goals. The linear
organizational structure will therefore used; where much emphasis is used to signify the chain of
command.
Based of Masculinity
Whiles masculine cultures welcome competitions as the main driver of success, feminine ones
support social wellbeing as the key success factor (Arabiankatu, 2013). Ghana’s score of 40
implies that the country is relatively feminine. The duty of line managers will be to establish
consensus, as there will be the tendency of employees to point out equality among themselves,
rather than giving recognition to stand out performers in the short – run.
Based on Individualism
Cultures that are individualistic view themselves as the center of decisions to be made whiles
collectivist societies take into consideration the extended family (Collins, 2010). On this index,
Ghana scores 15, implying that the citizens are more attached to their families. This implies that
employees of FMJC will have family commitment and expectations. Compensation packages
that are given to employees will therefore be aimed at extending them to their families. For
instance coupons and gift vouchers will be given to cover different generations in their families,
whiles they can be allowed to name two people that the company can assure medically besides
themselves
Based on Risk Avoidance
Different cultures have varying degrees to which they tolerate risk. Whiles some cultures believe
accepting risky decisions are part of life; others try to avoid risk as much as possible (Soares,
2008). Ghanaians are relatively risk averse and will avoid risk as much as possible, therefore
restricting their capacity to be innovative. Management of FMJC will therefore have to put in
place a strict code of ethics and menu, that employees are expected to follow. This is to maintain
the product taste and equity of the brand.
Employee Selection, Employee Training and Development
The main methods from which employees will be selected will be through personal
recommendations, job centers and recruitment sites. Being a start - up business, there is already a
high probability of failure, as is with the case of many other starts - ups that are formed
worldwide (Griffith, 2014). Since employees are the main contributing factor to the success or
failure of the business, the selection process is crucial to ensuring that the best and most trusted
talents are employed. Personal recommendation through friends, suppliers and distributors are
essential for achieving both purposes. The recommendations will not be only based on the
competences of the said employees, but will ensure that trusted employees can be recruited. Job
centers are usually run by the government of Ghana. They are usually composed of graduates,
both high school and university looking for entry level employment. Recruitment sites, that have
become dominant in Ghana will be the final method used in hiring workers. This method
involves hiring through an agency, who would have themselves evaluated the competencies of
their clients before offering them for interviews and employment.
Even if the best pools of employees are hired, training and development will be necessary to
ensure continuity. Job analysis will be ran on the company periodically to unearth the gaps in
employee performance. The nature of the juices sold is such a way that it requires frequent
research to discover new ways of ensuring quality and new discoveries of fruit contents,
particularly the diseases that they can prevent if not cured. Job training will be held every three
months, of which employees will write examinations on to test their capabilities.
Underperforming employees may be made redundant, as the emphasis of this business is not
only to sell fruit juices, but to promote good health
3.5 Financial Feasibility
Sales Expectations
As per the business model, the company’s sales are expected to come from the principal places
where its outlets have been established. These are schools, hospitals and ministries; whiles the
company shall provide 20 mobile vans to circumnavigate the city during the first year of the
business’s inception. There are 71 senior high schools and 220 primary schools in the city.
During the first year, 15 senior high schools and 25 primary schools will have outlets instituted
in them. Through government regulations average number of students in each secondary school
is 650 students, whiles primary schools have average student capacity of 1200 pupils. The
ministries, where the company will have outlets have approximately 3400 employees, whiles 7
hospitals will also have outlets in them. There is no limit to the number of fruit juices that the
mobile vans can sell, as they will be moved around the city for a maximum 8 hours per day.
However, during the first year, to control inventory, each van will vary the equivalent of 200
cups of fruit juices. With 20 vans in circulation, expected daily sales is calculated as 20 * 200 =
4000
During the first year, the company expects to sell to 25 percent of the population of each of the
stations described above. With an estimated one cup of Juice per person, expected daily sales is
forecasted below:
Daily Sales in Schools Daily Sales at Ministries Daily Sales in Hospitals
25% * (9750 + 30000) 25% * 34000 25%* 1200
= 9938 = 8500 = 300
Forecasted Total daily sales: 9938 + 8500 + 4000 + 300 = 22738

Estimated Yearly Sales for the various points of sales

Schools Ministries Hospitals Van Total
1619894 2286500 80700 1076000 5063094
View Calculations of Expected Annual Sales in Appendices 1
Pricing
The data collected was not only meant to discover the extent to which there is an estimated
demand for the market but also to discover the pricing strategies and expected prices that can be
set for the product to ensure that it is a reflection of the customers’ needs. The responses given
by participants gave the impression that customers perception about prices was in reference to
the prices set by competitors.

Prices of Competitors both direct, indirect and latent in the market

Coca Cola Kalypo Blue Skies Fruteli Ceres Minutes Maid Country Milk

GH 3.00 GH 2.3 GH 3.5 GH 5.5 GH 3.2 GH 4.5 GH 6.5

The penetration pricing strategy will be used in this business. This is because with each
competitor in the market, though have set differentiated have their own market share. In order to
enter the market, the price set will be GH 2.0 during the first year of inception.

Estimated Revenue for the first five years of operations

Year I Year II Year III Year IV Year V
10,126,188 12,151,426 17,315,781 19,393,675 21,720,916
See Calculations of Yearly Revenue in Appendices 2
Cost of Sales:
The Expenses for the first year estimated to be 11,500,000 (See Appendices for Breakdown)
Over the last 5 years, there has been volatility in the market, in terms of the rate of inflation. In
2010, it was recorded at 14.5% whiles as of April 2015, it stood at 16.17%. Inflation is expected
to have an impact on the expenses incurred. Since the price set over the five year period is
constant, we calculate the average rate of inflation in Ghana during the last 5 years to estimate
how much expenses are to increase.
Lowest rate 2012 = 8.2% highest rate 2014 = 17.1% Mean: 12.6%
Estimated Yearly Expenses for the first five years
Year I Year II Year III Year IV Year V
11,500,000 12,800,000 14,336,000 16,056,320 17,983,078
Expenses for Each year to be increased by 12.6%

Project Financing Requirement

As already stated, this business will be operated as a partnership, comprising of five members.
Due to the ease of imitability of this business, the partners have agreed that a large scale
operation is best, in order to capture the market as early as possible and erect barriers to entry.
Once this business is located at strategic places, returns can be higher and there will be little
space for competitors to operate. The estimated amount of money needed to start this business is
GH 454,500 cedis. With a cedi to dollar rate of USD 1 to GH 4.34 cedis, the approximate
amount required to start – up is $103,000. Together, the partners contribute 65% of the capital
with 35% secured through bank loans. Interest of the bank loan is payable after the third year of
operations.
A cash flow statement of this business for the next five years is shown in Appendices 3.

FORECASTED INCOME STATEMENT FOR A 5YR PERIOD

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Sales 10,126,188 12,151,426 14,336,000 19,393,675 21,720,916
Expenses -11,500,000 -12800000 -14336000 -16,056,320 -17983078
EBIT -1,373,812 -648,574 0 3,337,355 3,737,838
Interest - - -52000 -52000
EBT -1,373,812 -648,574 0 3,285,355 3,685,838
Tax (30%) - - - -985607 -1105751
EAT -1,373,812 -648,574 0 2299748 2,580,087

Investment Appraisal (Ask and Offer)

It will be advisable for investors to allocate their resources in this business as there is a great
propensity of growth. Investors are who put contribute their resources in this business venture
cab be assured of obtaining the best returns that the Ghanaian market has to offer, at minimum
risk as compared to investing in other areas. Below is a snapshot of the leading investment return
rate in Ghana, as of 2015

Sector Number of Years Rate of Return Risk Level

Treasury Bills 1 22.50% Medium
Telecommunication 1 18% - 21% Medium
Agriculture 1 14% - 17% high
Mining 1 20% - 22% medium
FMCG's 1 16% - 19% medium
Entertainment 1 11% - 14% high
Miscellaneous 1 7% - 15% high
Treasury Bills have become the most rewarding and most preferred choice for investors to put in
their resources for growth. However, hyper – inflation experienced in Ghana has made them less
attractive than they were previously, though it is perhaps the safest. FMJC will offer investors
25% rate of return each year should they opt to invest with us. The company is expected to break
– even before the third year of operations and experience rapid profit returns. The company’s
expenses are inflated as a contingency plan to accommodate inflation. However, should inflation
fall below figures forecasted, FMJC is expected to break – even after a year and half.
In appraising this business venture, the NPV and Payback period are used. These can be found in
Appendices 3 of this document

Break – Even Analysis

The Break – even analysis of FMJC determines the quantity of fruits juices that must be sold in
order for the Total Revenue to equate the Total Cost. This analysis also provides details of how
much of such revenue is required to break – even.

Break - Even Analysis

Fixed Costs Amount Variable Cost Amount

Mobile Van 70500 Salaries and Wages 44700

Furniture 35000 Disposable Cups 13000

Buildings 59900 Telephone Bills 23000

Gas Generator 32000 Utility Bills 45000

Freezer 22600 Raw Materials 57300

Computers 34500 Misc. 17000

Total Fixed Cost 254500 Total Variable Costs 200000

Break - Even Analysis

Total Cost = Total Fixed Cost + Total Variable Cost

 254500+ 200000
4545000

Selling Price per Unit 2.5

Cost per Unit 1.6

Break - Even Quantity

Fixed Cost/ Selling Price per Unit - Variable cost per Unit
2477146.667
Break - Even Quantity 2,477,147

Break - Even Sales

Total Produced Unit * Revenue
2477147 * 0.9

GH Cedis 2,229,432

Break – Even Projection TR

Profit
p=q

2.5

Loss

2,477,147
CHAPTER FOUR
Strategic Analysis and Business Model
Strategic planning is an important aspect of setting up and operating a business, irrespective of
how competitive or not the industry within which the firm may be operating in may be. Strategic
planning and management does not only reduce the degree of uncertainty that the firm is faced
upon entering the market, but also enables the firm to know how to effectively use the resources
that are available to them. Being a start – up venture, FMCJ is in a position where strategic
planning is necessary with regards to the fact that there are cohorts in the industry that have
created their own barriers to entry to minimize competition and protect their own market share.
Application of the following models will aid FMCG discover their best position in the market
considering the level of competition in the industry, as well as the strategic choices, which will
reflect the companies capabilities and strategic intent in the short and long term.
4.1 ADL Matrix
This matrix is used to define the competitive position that the company will have relative to the
industry that it’s operating in. This framework is built on two dimensions, one of which is the
degree of maturity of the industry and the competitive position of the company (Tudor, 2005).
The maturity of the industry is categorized into four. They are the embryonic, growth, maturity
and aging stages. Depending on the stage of maturity, ADL describes 5 strategic positions, all of
which have impacts that the decision maker must assess. The strategic positions are: dominant,
strong, favorable, tenable and weak (Wensley, 2004).
Stage of Beverage Industry Maturity in Ghana
The beverage industry Ghana is in its maturity stage. According to Palmer (2013), restaurants,
drink bars and snack bars, as well as chop bars (local restaurants) remain the most common
business start - ups in Ghana. In Accra for instance, there is an average of 1.5 foods and drink,
per each area of 200m sq (Palmer, 2013a). With regards to the fact this business venture is one
that is uniquely new in the Ghanaian beverage industry; FMJC will take the tenable competitive
position. Wensley (2004) describes this position as one, where the firm, upon realizing the
degree of competition within the market sets its target on a niche market by offering a variety of
products to a demographically segmented target customers. FMJC is conversant with the huge
presence that the likes of Coca Cola and Kalyppo has in the Ghanaian market, with Coca Cola
especially being the dominant force in the industry. With the FMJC targeting children, diabetic
and health conscious customers, the company aims to establish the strong competitive position
by the third year of its inception
4.2 Ansoff’s Matrix
This matrix have become one of the more popular strategic frameworks that presents a firm
strategic options for growth after consideration of the prevailing marketing conditions (Stone,
2011). See Appendices for Ansoff Matrix

FMJC – Product development strategic choice

With the current market conditions, there already exists a market for beverages in Ghana. The
industry is highly oligopolistic with firms producing differentiated products that are easily
recognized by customers. The likes of Coca Cola, Fanta, Alvaro, Frutelli, Don Simon etc. have
their own unique tastes, which customers can easily identify. Local drinks such as ‘nsafufuo,
pito, toose’ and asaana’ have all established equity that customers easily adhere to. However, in
– take of such beverages is a means of quenching tastes or serving as an appetizer, rather than
one of extreme loyalty among Ghanaian consumers. This makes the ‘Product Development’
strategic choice the best for FMJC. The critical success factor, which will generate interest in
FMJC products will be the high and uncompromised nutritional value that it offers to consumers,
making it an order winner in a market where there are an estimated 38 registered beverage
companies (FDA, 2014)

4.3 Strategic Diamond

All firms that operate in within an industry will have a strategy in place. This is common among
firms who want to make profits and/or have a future in the market. The issue is therefore not
about the having of a strategy but rather the effectiveness of the strategy, as a result of
understanding the foundations upon which the strategy is formulated.Hambrick and Fredrickson
(2001) first developed the strategic diamond, as a framework for communication. The authors
believe that earlier scholars have failed to develop effective strategies because the foundations
upon which the strategy should be build are always missing. According to Hambrick and
Fredrickson (2001a) this model offers management an articulate measure of analyzing and
communicating the firm’s market offerings, its business and corporate level strategies. It
conceptualizes strategic choice options. The elements of this model are arenas, differentiators,
vehicles and staging that centers economic logic (See Appendices).

Arenas
The arenas describe the products, channels, segments, geographic area and technologies that will
be used in FMJC to ensure that value is created.
The product categories are differentiated fruit juices made from organically grown fruits. Juices
will be extracted from pineapples, oranges, mangoes, sugar canes and water melon in the
primitive years of the business inception. The business will be centered in schools, hospitals, and
government ministries in Accra, as well as mobile vans that will circumvent the city to ensure
greater market penetration. The target customers will be diabetic patients, student and health
conscious individuals. Sugar cane juice extractor represents one of the unique technologies used
in this business during preparation. Customers can also call in to make their orders with free
delivery services, if their orders exceed ten cups of fruit juice.
Vehicles
This refers to the internal driver that enhances the effective application of the strategy. This
business will be driven by the competences of the partners that have contributed to the formation
of this business. Two of such partners have commercial farms which are wide enough to provide
constant supply of pineapple, oranges and mangoes. Another will have the capital needed to
ensure operations are adequate, whiles the remaining partners use their business and
entrepreneurial skills to run the business.
Differentiators
The differentiators refer to the elements that distinguish FMJC from competitors within the
industry. They may include the prices set by FMJC, images and logos and the degree of
customization. FMJC will first be differentiated by the nature in which the fruit juices are
produced. It will be the only juices produced in the country naturally made from fruits with no
added preservatives no sweeteners. Consumer sovereignty will also be high in this business
seeing that customers decide on what fruits should be combined to prepare the juices.
Staging
This element describes the nature of growth and how the business is expected to gain higher
penetration. The business will expand through moving into many other schools and hospitals
within the first three years. The idea is to operate in 90 schools by the third year of operations.
The number of vans is also expected to increase by 20 percent within this period to further
penetrate the market and submerge effect competitors that may be uprising.
Economic logic
This is the result of all the element working together in order to provide value for all the
stakeholders involved. This value proposition in most cases will be the profits earned. In the case
of FMJC however such will be achieved through economies of scale from which competitive
economy pricing techniques will be used. Enabling FMJC to sell at cheaper prices as compared
to competitors.
4.4 Value Chain
The value chain analysis, as proposed by Porter is used as a strategic tool for determining the
core capabilities of a company. Being a start - up business venture, the activities of production,
that are both primary and secondary to FMJC must be assessed to identify the extent to which the
company can guarantee not only a competitive advantage, but one that is sustainable (Dess,
2007)
Inbound Logistics
Genetically Manufactured Foods have become a common place in the Ghanaian market. The
dangers of genetically modified foods have been extensively publicized, with the American
Academy of Environmental Medicine, stating infertility, faulty insulin and accelerated aging
among the aftermath of consuming genetically modified food (AAME, 2011). To obtain
organically produced fruits, FMJC will obtain its supply of fruits from Keta, 137km from Accra.
In the absence of traffic, it will take an estimated 1hr 40 minutes to transport.

Operations Logistics
The operations describe the basic manufacturing of the fruit juice. The manufacturing process is
estimated to 3 minutes 15 seconds. Natural juice is extracted from the customer’s desired fruit
with the intention not to add sugar or any other sweeteners, unless the customer states otherwise.
Even though this is a simplistic process, for the purpose of protecting the brand identity, this
process will be done at the customer’s discretion, to prevent earlier competitors from
cannibalizing the business.
Outbound Logistics
The products will be sold via two main methods. The first will be sold at the juice bars, where
seats will be provided for customers in a spacious environment, well ventilated. On the other
hand a mobile van will move across the city to serve customers who may be jay walking, caught
in traffic or on the streets for miscellaneous reasons
Sales and Marketing
During the first couple of year, the main forms of promotion will be through print media such as
leaflets and handouts. Relationship marketing will also be employed by creating traffic to the
company’s social media handles. Course marketing methods such as presentations on the
benefits of consuming natural fruit juices in schools, hospitals and religious bodies will also help
product penetration
Service
Excellent customer services will complement the products that are being sold. Sales personnel
will themselves be educated on the benefits of consuming each of the fruits from which the
juices are derived. The rationale is to offer customers a brief insight on the health benefits for the
fruit juice they are consuming.

Secondary Activities
Procurement
Not only will fruits be purchased for manufacturing into finished juices, but also most
importantly machinery. Whereas all the equipment used in manufacturing can be obtained
locally, the sugar cane juice extractor will be imported from India, where the cost of one is $255.

Human Resource
The employees will require less training since manufacture is relatively simplistic. However,
since they will have added duties such as having good knowledge about the fruits they serve and
provide valuable daily facts and figures about them, a qualification of Senior High School
certificate will be a must
Technology
The company will erect its website, which will also be providing customers’ information on
daily health tips, as well as new assorted fruits in stock. Coolers and sterilizers
Infrastructure
Mobile vans and drink bars

4.5 SWOT ANALYSIS 0f FMJC

Strengths
 Previous industry experience after managing restaurants
 Strong promotional campaigns
 Less cost involved in employee acquisition, training and remuneration
Weaknesses
 Lack of capital to sustain the business over a year period, if it falls short of sales targets
 Lack of previous experience in a similar business model
Opportunities
 Easy access to raw materials (fruits)
 High consumer tastes in fruit juices and drinks
 No player in the industry offers the same services
Threats
 Easy to imitate by competitors
 Less capital required to start the business

4.6 Kano’s Customer Satisfaction Model

This model is used to make analysis of the most important features that a product should have,
usually based on the industry requirements. With the ADL matrix already providing emphasis on
the level at which the industry has matured, this model is the defining tool that will ensure the
extent to which the business will be profitable or unprofitable. Kano identifies three product
attributes that will be important in ensuring that customer satisfaction is achieved. They are
threshold, performance and excitement attributes
Threshold Attributes
These are attributes of the product that must be basic in the product. In other words, the absence
of these attributes causes grave dissatisfaction among customers. However, its presence in the
product does not necessary lead to customer satisfaction (Bailom, 2006). They can also be
termed as the core product of the fruit juice. In this respect, the threshold attributes will be the
absence of seeds in the fruit juice. Since the juices are extracted and fruits at the point of sale,
there is the chance for some seeds to be found in the juices. Customers who take their orders and
enjoy the fruit juice without seeds may not find it hugely important. However, should they find a
single seed in any of the juices served, they will be greatly dissatisfied.
Excitement attributes
These attributes are also simply known as satisfiers. These are product or service attributes that
leads to customers’ satisfaction should they experience them: however the customer does not
necessarily get dissatisfied in their absence (Huang and Guan, 2011). The excitement attributes
of Fruit Master Juice products, will include giving the customer the option of serving the juices
hot or cold, and also reducing the waiting time and queuing line that customers must endure
before being served. This can be achieved through hiring a minimum of three sales personnel to
take customer orders and serve them at busy locations
Performance Attributes
The performance attributes of this model has the propensity to lead to high customer satisfaction,
hence delight and low customer satisfaction, on the bases of how they are performed (Matzler
and Hinterhuber, 2006). They are also known as the order winners in this industry. This is where
Fruit Master Juice will set its Unique Selling Point. A brief 40 second presentation about the
kind of fruits that customers have ordered and their nutritional value will be an added service
value to customers.FMJC believes that such interaction engages the customer and increases
‘want’ for the product, if it can be justified that consuming such fruits are good to their health.
4.7 Sources of Competitive Advantage
A competitive advantage is a phenomenon which all companies operating in an industry fight
for. They believe that a competitive advantage must not just be achieved at one point must be
sustainable over a long period of time; so as to enable the firm fend off the effects of rivals in the
market. A competitive advantage can be achieved through certain aspects of production or
operations, which offers valuable products or services to customers in such a way that it is
difficult for rivals to imitate. To secure this, Lamb et al (2008) proposed the VRIO framework,
which is also known as the Resource – Based view for value creation. The authors noted that
should a startup like FMJC secure such competitiveness in the market, their resources should
have the following characteristics.
Valuable:
The mode a channel of distribution of FMJC will offer value to customers and is vital to compete
with its rivals in the market. Fruit raw materials only take an hr and a half to reach the city where
fruit juices are sold. Because fruit juices are prepared at the point of sale and freshly sold to
customers, the effects of middlemen who push prices up are removed. In the absence of bottling
and other packaging costs, customers experience value for their money
Rare
This is the first beverage company in Ghana that target diabetic patients and health conscious
individuals, whiles offering other miscellaneous customers value. This is because most
beverages sold in the market such as use the mass segmentation strategy of selling to the masses
irrespective of their demographic profile. Even though the likes of Coke diet have been
introduced in parts of the world aimed at targeting diabetic patients, it has not gained penetration
in Ghana
Imitability
FMJC faces the threat of imitability. This is because the manner in which fruit juices are
extracted and sold is relatively easy to imitate by competitors. Without establishing brand equity
in the shortest period of time, FMJC will risk being marginalized. However, the company can
safeguard against imitability through the usage of organically grown fruits, which themselves
have been rare in Ghana. Competitors are therefore likely to extract juices through GMO’s which
will alter the taste and nutritional value
Organization
The resource alone does not guarantee competitive advantage, unless FMJC use their own
competence to offer value to customers. This is to be achieved through strict management
systems and operations that is streamlined towards servicing customers on time and reducing
queuing lines.
 4.8 Business Canvas Model
Key Partners Key Activities Value Proposition Customer Customer
Darko Farms Research and Development Nutritional fruit juices at Relationships Segments
Machiaveli Organic Manufacturing of fruit affordable prices for High customer Diabetic
fruits juices children, diabetic and sovereignty: patients in
Santosh and Sons: Marketing of core business health conscious customers Ghana,
Suppliers of sugar individuals exclusively choose estimated 4
cane juice extractors the fruits from million in 2013
which they want School Children
the juice extracted Health
from. conscious adults
Relationship
marketing will be
used to encourage
customer input

Key Resources Channels

Organically produced
Kiosks
Fruits Mobile vans/
Vending machines
Sugar – cane juice
extractors
Blenders
Mobile Vans
Human Resources: - Senior
High School graduates and
beyond
Cost Structure Revenue Streams
Operational costs with high fuel expenses incurred Exclusively from the sale of fruit juices across different segments
through the activities of mobile vans Price discrimination tactics will imply that low prices will be set
Salaries of sales personnel in schools, therefore reducing the sales revenue from such
Research and development segments
CHAPTER FIVE
The Business Plan
This is the final chapter of the project, which provides a blueprint of the entire business plan.
Synopsis of Fruit Master Juice Company
As per the laws of Ghana, every company from sole proprietorships to Joint Stock companies is
to be registered with the Registrar of Companies, to obtain prove of validity of the business. In
compliance, Fruit Master Juice Company will be registered and will operate as a partnership.
There are five principal partners who bring to the business their competences and finances to
effectively helping the company grow.
PARTERS CONTRIBUTION TO FRUIT MASTER JUICE COMPANY
Christiana
Nsia, 10%

Bernard
Cassandra
Oppong, 35%
lone, 15%

Edinam
Michael, 17%
Jayden
Machiaveli, 23
%

Competencies of Partners
Bernard Oppong – Kumi
Maximum shareholder and generator of business idea.Experience in restaurant
management.Multi-lingua.Fluency in English, French, Italian and five Ghanaian local languages.
Holder of MBA, - International Business and Chartered Institute of Banking
Jayden Machiaveli
Italian and British origin.15 years’ experience in agro – business.Owner of large banana and
pineapple plantation.
Edinam Michael
Third largest shareholder. Business Development Manager. 5 years working experience with
Barclays Bank UK – Ghana.
Christiana Nsiah
24 years’ experience in local business in purchasing and supply. Owner of delivery trucks
essentially used for carriage of raw materials. Deep knowledge about the local market
Cassandra Lone
Investor. Well – connected in with business in India and Ghana. Good negotiation skills relevant
to winning contracts and supplies of raw materials needed for business operations. Fluency in
Hindi and English.
The idea upon which the business is being modeled is inspired from India, where exclusive fruit
juices centers are opened and operated at places of convenience, inviting buyers to drink juices
made wholly from fruits at relatively cheap prices. This business model has worked well in
India, and increased the average number of fruits which consumed each day.
The inception of this business in Ghana is yet another addition to its food and juice sector, as part
of the hospitality industry, which is ever growing in Ghana. The companies Unique Selling Point
(USP) will offer it its competitive advantage. Whiles sodas and carbonated drinks have received
a lot of backlash in the country due to the adverse effect that it has on individuals who consume
it, especially due to the high sugar and color contents, Fruit Master Juice product and services
will be designed as manufactured as a healthy alternative for such carbonated drinks. All sales
points of the fruit juices will have well trained service deliverers, who will provide insights to
customers on the benefits of the fruits that they have chosen to consume.

Objectives of FMJC
i. To promote good living among young adults by offering them substitutes of the
relatively health dangerous carbonated drinks, through 100% fruit Juices
ii. To offer diabetic patients alternative drinks that contain little to no sugar such as
sugar – cane juices, that help fight diabetes
iii. To create and improve the standard of free competition, among the different players
in the Ghanaian juice industry.
iv. To create trustworthy bran which commercially will enable customers to accept fruit
juices confidently as being appropriate and good for their health.
Marketing Plan
Market Analysis
With the industry being highly competitive, the Ghana Tourist Authority in 2014 pointed out that
the growth rate of the food and juice industry in Ghana had averaged 9.6 percent each year, over
the last 15 years, making it the most competitive industry in the country (Ghana Tourist Board,
2014). Competition is driven by large multi – national companies and traditional ones both of
whom have sizeable market shares. Being one of Africa’s most democratic and peaceful
countries, low corruption index score and ease of doing business have stimulated most foreign
companies to have subsidiaries in the country. Local manufactures of juices have resulted to
palm wine as the main raw material component which has a large appeal among people in
Ghana. The high competition in this industry has not dissuaded firms from entering the market,
due to the relative ease of entry and lack of brand specific customer loyalty. This has made
switching cost low and propelled customers to try new products that come into the market.
Buying Behavior
Consumers within this industry display variety – seeking buying behavior. This indicates that
there is low level of brand loyalty among consumers in the beverage industry. With beverages
among FMCG goods in Ghana, consumers have the strong desire to try out new drinks that
emerge in the market. Another criterion that influences the buying behavior of consumers in this
market is the convenience or proximity between the consumer and the next available juice or
drink that can be purchased. It has almost become a norm in Ghana, for children to be given
drinks to school, as well as for individuals to consume drinks after meals. Rather than consumers
ordering a specific drink from a seller, they inquire what drinks or juices are available first,
before deciding on which one to consume. For this reason, in the absence of the customer’s first
choice of drinks, he or she has no reservations in demanding the next available drink.

Outlook of Competitors
Competitors may exist in the form of direct, indirect or even latent competitors. Latent
competitors may not be directly competing in with FMJC but can acquire potential customers
from FMJC. Direct competitors in the industry are those companies that offer drinks that serve as
substitutes or alternatives to the juices offered by FMJC. Their impact over the years has played
a major role in shaping the industry. Below is a graphical representation of the major players in
the industry and their market share.

Market Share of Competitors

Blue Skies Don Simon Coca Cola Pepsi Frutelli Kalypo Countre Milk Other

9% 6%
11% 15%

14%

24%

13%
8%

MARKETING STRATEGY
Segmentation, Targeting and Positioning
Most companies that operate in the fruit juice and carbonated drinks industry use the mass
segmentation strategy, as a means of targeting customers and potential customers who have the
desire of consuming drinks at various times during the day. Fruit Master Juice Company will
follow this same business model. However, special attention will be given to diabetic patients
who are in dire need of reducing their sugar levels. Also, with the shops being conveniently
established in schools and hospitals, special attention will also be given to children and health
conscious adults. These targeted customers will be provided with fliers and booklets that explain
the benefits of fruit juice consumption. The positioning of the juice is concept carried by the
product, which translates into the minds of the customers. The products will be positioned in the
minds of customers that it offers them vitamins
Positioning Graph
Marketing Mix
Product
The products will be differentiated based on the choices of customers. Fruit juices will be made
from pineapples, oranges, mangoes, sugar cane, pawpaw, water melon, coconut and banana. This
will be the fruits from which juices will be extracted in the primitive years of the business.
Grapes and apples would be introduced later, as they are not grown in Ghana and will increase
costs of production, since they will have to be imported.
Price
The price for a product is the second most important reference point for customers when making
purchasing decisions. Whiles consumers may be interested in buying the product, they may not
be in agreement with the price set and hence refuse to buy products. As pointed out in the
marketing plan in the previous chapter, penetration pricing will be used to attract customers to
buy the products. This pricing strategy is used with reference to prices set by competitors in the
industry
Place
The place of product and service delivery must be conducive enough to attract customers. The
business is set up in two principal forms. The first will be model structures will be immovable
and stationed in schools, hospitals and workplaces. Fruit Juices will be serviced in disposable
cups allowing buyers to take – away rather than consume it at the shop premises. However, as a
place of convenience and recreation, tables and chairs will also be placed there. The second
model of this business is the mobile van, which will be patrolled around the city to ensure greater
penetration.
Promotion
Most businesses incur greater cost in promotion as a result of creating awareness for the product
or service. Advertisement is often used as the main promotion tool because it can potentially
reach much of the target audience. However, with this business, relationship marketing will be
used as the main promotional means. Through social media and other word of mouth marketing
techniques, potential customers will not only be informed but help create the product menu.

Management Style
A strict non – flexible management style will be used in this organization, until such time when it
has been able to gain grounds in the market and achieved relative stability. The nature of this
business is such a way that, should innovation be encouraged, the taste of fruit juices prepared at
different locations will differ from each other, eradicating brand equity. Employees will be
required to follow a strict code of ethics such as reporting time, dress codes, and must display
high service quality rendered to consumers. Fruit juice shops situated in schools will have to
open before school hours and closed an hour and a half after school hours, since the target
population in such schools will be the pupils. For this reason, employees will be required to
report and open shops by 7:30am and close at 5pm. Those stationed in hospitals will open at 10
am and close at 10pm, though employees in such will be operate in shifts. Those stationed at the
ministries will operate from 9am to 5pm whiles mobile vans are expected to operate from
6:00am to 8pm, albeit on shifts.
Organizational Structure
BOARD OF DIRECTORS

CEO

Finance Manager Operations Manager Marketing & Sales Manager Human Res.
Manager

Research Assistant Sales Team

Being a start – up company, the organizational structure will be as thin as it can be, to control
cost. For this reason, competent employees that can multi – task will be employed to drive the
company forward. The sales team will employ the highest number of employees. These will
compose of all the vendors that operate both in mobile vans and stationed at schools.
At the top of the chart is the Board of Directors, who are made up of the partners who formed the
business. As earlier pointed out, they will contribute not only capital but other fixed assets that
will be used in running the business. They will have equal votes in decision making and profits
will be distributed based on their contributions towards the business. A CEO will be chosen to
manage and have general control of affairs in the business. This is because all the partners are
already gainfully employed or have other commitments. In the even that any of such partners is
not committed to any profession at the time of commencement of the business operations, such
partner will assume the role of CEO.
The operations manager will be in charge of the day to day activities, by visiting daily the centers
where the fruit juices are being sold and taking stock. He will also be in charge of giving
directives and ensuring that the service blueprint is followed. The financial manager and
marketing manager will handle financial accounts and marketing activities respectively, whiles
the Human Resource Manager will make hiring and firing decisions. It must be noted again that
any these roles may be taken by the principal partners, in the even that they have no
commitments, once the business begins to operate.
Operational Plan

Flow Chart of FMJC

Fruit Selection Distribution of good

fruits to Sales Points

Delivery for Raw Fruits for Washing Selection Good fruits for Processing

High
Voltage
Pulse
Generator

Temperature Chamber

Filter

Temperature
Chamber

Raw Products Pump

Treated Fruit Juice

The above flow chart presents an over view of the operations involved in offering final value to
the customers. The business starts with the delivery of the raw fruits from Keta, Axim and
Nsawam to the Warehouse located in Accra, where the fruits are thoroughly washed. A selection
process is then made to prune out bad or harmful fruits, as well as those that are unripe and
therefore not ready for consumption. The selected assorted fruits are then transferred to the
various points of sale, based on the request of the sales personnel at each point of sale. Raw fruits
are then cut into slices after they are peeled and pumped into an extraction machine, to convert
the fruits from solid states in liquid. The fruits such as watermelon, oranges, pineapples and
pawpaw will all contain seeds that may not be perfectly blended. The liquid state fruits are then
filtered to remove the seeds from the fruit juice which can now be served to customers either in
their warm state of cold state by adding ice cubes to the final juice extracted.

Financial Plan
As already stated in the third chapter, this business will require an initial investment capital of
GH 454500 cedis in order to establish its grounds. Below is the projected cash flow statement for
this business
Cost Drivers

Total Cost 454,500

 Cost Drivers

Variable Cost
44%

Fixed Cost
56%

Statement of Cash Flow

First Year Second Yr Third Yr Fourth Yr Fifth Yr
Net Income -1373812 -648574 - 2299748 2580087
.+ Depreciation 7000 7000 7000 7000 7000
.+ fall in Curr. Ass 3400 13403 25676 1122 6086
CFO -1363412 -628171 32676 2307870 2593173

Equipment Sold 65000 56700 45500 500 600

Sale of Van 75000 115087 76880 - 3000
Equipment Bought - -10000 -330000 -598000
Vans Bought -977000 -994000

CFI 140000 161787 122380 -1306500 -1588400

Dividends Paid -470000 -450000
Payment of Loans - - - -300000 -400000
CFA - - -770000 -850000
Ending Cash Balance 140000 161787 155056 231370 154773
 Net Present Value
Years Cash Flow PerentageInt Present Value
0 -454500 -454500
1 140000 120690
2 161787 16% 120234
3 155056 99338
4 231370 127784
5 154773 73689

NPV = Total Value of the Cash Outflow - Total Value of Inflow

Total Outflow = 541735 -454500
= 87235

IRR 24%

Payback Period: Based on the above information, Payback period is estimated at 3 yrs 5
months.
Business Plan Schedule
All things being equal, the business is schedule to begin in August 2016, approximately 10
months from now. This date is chosen because it will fall within the period where heavy rains
have stopped in Ghana and fruits are being harvested. Supply of raw material (fruits) will
therefore be inelastic and come at a cheaper cost. Below is a tabular representation of how the
business plan is to be executed.
Task Start Date End Date Duration
MARKET RESEARCH FOR FMJC 7/7/2015 7/7/2015 20
Segmentation of the Market for FMJC 7/7/2015 7/8/2015 5
Design of Survey instruments 7/8/2015 7/9/2015 4
Analysis of Secondary Research 7/9/2015 7/10/2015 4
Discovery of Competitors 7/15/2015 7/18/2015 10
DEVELOPMENT OF BUSINESS PLAN 7/21/2015 7/22/2015 24
Analysing the findings of market research 7/22/2015 7/27/2015 5
Identifying the promotional techniques 7/30/2015 8/3/2015 7
Analysis of Financial findings 8/4/2015 8/12/2015 5
Securing of Bank Loan 8/15/2015 8/30/2015 4
Legal work in securing company permit 8/31/2015 9/7/2015 6
FMJC – FACILITIES 9/7/2015 9/11/2015 23
Feasibility of business location 9/12/2015 9/12/2015 5
Designing of sales points 9/19/2015 9/26/2015 6
Fitting of machinery and other equip. 9/27/2015 9/30/2015 3
Brand Registration 10/1/2015 10/5/2015 7
Securing of Permits 10/6/2015 10/11/2015 3
FMJC – OPERATIONS 10/13/2015 10/16/2015 23
Recruitment of Employees 10/18/2015 10/24/2015 5
Promotion of Brand/Business 10/25/2015 11/5/2015 4
Designing of Service Menu 11/6/2015 11/11/2015 6
Training Programs 11/12/2015 11/28/2015 7
Opening sales joints 1/1/2016 7/1/2016 4

Risks
The chapter provides an assessment of factors that can prove detrimental to the successful
running of this Juice making company.
I. The quality of fruit juices may not be up to the expectations of consumers who are
already used to carbonated beverages
 II. Inability to meet the demand of customers during off seasons, such as periods of droughts
leading to low harvest of fruits for juices
III. High degree of competition that currently exists in the beverage industry
IV. Seasonal production of fruits may have an effect of prices of juices manufactured which
may confuse customers
V. Dependence of electricity to extract juice. Power supply in Ghana is currently unstable.
VI. Easily imitable business idea implies that competitors may spring up within the first few
months of operations

CRITICAL SUCCESS FACTORS

As earlier noted the beverage industry is already in its growth stage and have a lot of competitors
already enjoying significant market share and brand recognition. Measures must be put in place
to ensure FMJC have a place in the market. With knowledge of the risk factors in the market, the
following are the critical success factors of FMJC
I. Employee Training
One of the elements that differentiate FMJC from other beverage companies is that the fruit
juices are complemented with the services that are provided with it. The efforts of the sales
personnel are ideal towards establishing a strong brand in the market. This is because unlike
other beverages that are sold through retailers, FMJC juices will be sold exclusively by trained
FMJC staff. They will therefore be equipped with service quality training and knowledge about
fruits
II. Relationship Marketing
Relationship marketing forms part of holistic market. Relationship marketing involves customer
inputs in designing service menus and choice of products that should be added to the menu.
Their expectations and input will ensure there is mass customization of fruit juices prepared to
provide unique tastes for each customer
III. Management Style
The form of management employed in this business model also plays a key role in offering
value, due to the fact that sales personnel play a multi – purpose role of extracting and preparing
the fruit juices, selling them and offering health educational tips to customers. Employees will
therefore be made to feel as part of the organization rather than hired workers for pay. They will
receive high remuneration to keep them satisfied and prevent them from breaking away from the
company to start a similar trade
IV. Breath of Product Line
The product line involves the quantity of fruit juices available for consumers to choose from.
This is the widest array of choices that customers in Ghana will ever have regarding fruit juices.
Also, the breath of fruits allows high differentiation since customers can choose from different
fruits to be mixed to produce the final juice. In other words customers have about 8 fruits from
which juices can be extracted to produce a final juice valued by customers.

Alternative Business Strategy

This will serve as a contingency plan should the business falter or not meet expectations after the
first couple of years of inception. The diversification strategy will then be employed. The
machinery used in this business can be used in preparing lime water. It is basically the result of
calcium hydroxide that is diluted in water.Beth (2012) already pointed out that the consumption
of lime water aided digestion and was adequate in cleaning the body system. Anthony (2005)
also pointed out that this aids in balance the level of acidity in contained in the body, whiles
providing consumers with clear skin. Though lime water have been encouraged in western
countries, the business of such water does not exist in Ghana. In the context of Ghana then, this
will be a Diversification strategy by FMJC. Lime will be blended and extracted with adequate
amounts mixed with treated mineral water, refrigerated and sold to customers of all ages. It shall
follow the same business mode of FMJC.
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Appendices 1
Calculating Yearly Sales of FMJC
The shops and vans will operate five days each week and will therefore not work on weekends
during the first year. This makes the total number of working days 269. In each academic,
schools enjoy 3 and half months of vacation, which transcends to 106 days. This means that
during the first year the outlets in schools shall operate for 163, that is (269 – 106)
Total yearly sales are calculated as:
Yearly sales for Schools 9938 * 163 = 1619894
Yearly sales for Ministries 8500* 269 = 2286500
Yearly Sales for Hospitals 300 * 269 = 80700
Yearly Sales for Van 4000 * 269 = 1076000
Total Yearly sales for First Year: 5,063,094

Appendices 2
Total Sales Revenue: Sales x Price
Year I:5,063,094 x 2.0 = GH 10,126,188
Sales are expected to increase by 20 percent due to higher penetration. This is because the
number of schools and mobile vans is expected to be increased by 20%. With prices held
constant, expected sales for Year 2 is calculated as:
20% x 10,126,188 = 2,025,238
10,126,188 + 2,025,238
Year II =GH 12,151,426
The product is expected to continue grow during the 3rd year: largely due to greater penetration
into different schools and regions. However, with the relatively simplistic nature of the product
competitors are expected to emerge in the market. Growth rate of 14% is expected in Year III. In
the midst of inflation, price will now be adjusted to GH 3
Year III sales is calculated as:
14% x 15189282 = 1701200
Year III =GH 17,315,781
Over the next couple of years, a growth 12% growth rate is forecasted
Total Sales of Year IV = GH 19,393,675
Total Sales of Year V = GH 21,720,916

THE BALANCE SHEET FOR FMJC

Particulars Year 1 Year II Year III Year IV Year V
FIXED ASSETS
Furniture 76000 69920 64326 59180 54446
Equipment 54000 49680 45706 42049 38685
Van 80000 73600 67712 62295 57311
TotalFixedAssests 210000 193200 177744 163524 150443
Current Assests
Cash 14000 11000 15000 16000 18000
Bank 20500 16000 22000 25000 30000
Total Assets 454500 413400 392488 368049 348885
Liabilities
Creditors 200000 200000 150000 150000 120000

Financed By
Equity 150000 150000 130000 113000 110000
Retained
Earnings 104500 63400 112488 105049 118885
Total Liabilities 454500 413400 392488 368049 348885

Note: Fixed assets are expected to depreciate by 8% each year for the next five years

CURRICULUMN VITAE OF PARTNERS

PARTNER I - PERSONAL INFORMATION
Name: Bernard Oppong - Kumi
Date of Birth: 13th August 1986
E – mail Address: delaverro@gmail.com
EDUCATIONAL BACKBROUND
MASTERS IN BUSINESS ADMINISTRATION
SPECIALIZATION: INTERNATIONAL BUSINESS
CARDIFF METROPOLITAN UNIVERSITY –UNITED KINGDOM
COURSE DURATION: 2014 – 2015
PROFEESIONAL CERTIFICATE MARKETING IN OIL AND GAS
SPECIALIZATION: OIL AND GAS, PETRO – SKILLS
GOODWILL INTERNATIONAL GROUP, NORWAY/GHANA
COURSE DURATION: 2011 – 2013
CHARTERED INSTITUTE OF BANKING
COURSE DURATION
2007 - 2011

BACHELOR OF ARTS IN ECONOMICS

KWAME NKRUMAH UNIVERSITY OF SCIENCE & TECHNOLOGY
GHANA
2005 – 2009
PRESBYTERIAN BOYS SENIOR HIGH SCHOOL
GENERAL ARTS
ACCRA – GHANA. 2001 – 2004
WORK EXPERIENCE
POSITION YEAR/DURATION JOB DESCRIPTION

LECTURER/INSTRUCTOR 2011 - 2014 Lectured for 3 years, teaching

Economics, HR, Marketing and
IPMC – NCC – UK
Business Management/
Communication to students
undertaking Diploma and
Advanced Diploma Courses
leading up to a degree, offered by
University of Wales, UK

MARKETING MANAGER 2009 - 2010 Responsible for securing

contracts for the company, and
MOVIE MAGIC MANIA ENT.
designing promotion mix
elements, needed to create
awareness of the company

NEW EDITOR 2010 Was the Senior Editor for this

Newspaper. Responsible for
THIS IS UNITED NEWS
assembling and proof reading
PAPER various news items worthy of
being published each week.

ADMIINISTRATIVE CLERK 2009 - 2010 This was a mandatory position I

held as part of my national
MINISTRY OF WOMEN AND
service. Was reporting for
CHILDREN’S AFFAIRS:
preparing reports and scheduling
DEPARTMENT OF WOMEN.
departmental and regional
GOVT. OF GHANA meetings.

SKILLS AND COMPETENCES

 STRONG COMMAND OF ENGLISH LANGUAGE
 COMPREHENSION OF FRENCH & ITALIAN
 SOUND KNOWLEDGE ABOUT INFORMATION TECHNOLOGY
 ABILITY TO WORK IN GROUPS
 TEAM PLAYER
 ABILITY TO WORK UNDER PRESSURE

PARTNER II - PERSONAL INFORMATION

Name: Christiana Nsiah
Date of Birth: 24th December 1958
E – mail Address: christianaN1958@gmail.com

EDUCATIONAL BACKBROUND
BACHELOR OF HUMNITIES: PURCHASING AND SUPPLY
UNIVERSITY OF GHANA - LEGON
1976 – 1980

ST MARY’S SENIOR HIGH SCHOOL

GENERAL ARTS
ACCRA – GHANA. 1968 - 1972
WORK EXPERIENCE
POSITION YEAR/DURATION JOB DESCRIPTION
PRESIDENT 2006 - 2015 After winning national best
female farmer for 5 years running
ASSOCIATION OF FEMALE between from 2000 – 20005, I
FARMERS (AFF) - GHANA was appointed the president of
this association to help and
empower more women to join the
agricultural industry
HEAD OF PROCUREMENT 1992 - 1998 Responsible for determining
MEAT MARKETING BOARD quality meat in the market that
can be exported, whiles
brokering deals on behalf of the
Government of Ghana
PROCUREMENT OFFICER 1988 - 1991 Key responsibilities include
DARKO FARMS purchasing of raw materials and
importing quality feed from
Nigeria and other neighboring
countries

SKILLS AND COMPETENCES

 STRONG COMMAND OF ENGLISH LANGUAGE
 SOUND KNOWLEDGE ABOUT INFORMATION TECHNOLOGY
 ABILITY TO WORK IN GROUPS
 TEAM PLAYER
 ABILITY TO WORK UNDER PRESSURE

PARTNER III - PERSONAL INFORMATION

Name: Jayden Machiaveli
Date of Birth: 27th February 1972
E – mail Address: jaymach@gmail.com

EDUCATIONAL BACKBROUND
POPE JONH SENIOR HIGH SCHOOL
AGRICULUTURAL SCIENCE
UNITED KINGDOM. 1988- 1992
INTERNATIONAL SCHOOL OF FLORENCE
FIRENZE – ITALIA
1983 - 1986

WORK EXPERIENCE
POSITION YEAR/DURATION JOB DESCRIPTION

MANAGER 2010 - 2014 Responsible for managing client

farms in Como, Milan. Major
produce of banana and
COMO AGRO – SERVICES strawberry

ITALIA

BUSINESSMAN 2014 - PRESENT Owner of large banana

plantations in Keta, East of
GHANA
Ghana

SKILLS AND COMPETENCES

 STRONG COMMAND OF ENGLISH LANGUAGE AND ITALIAN
 SOUND KNOWLEDGE ABOUT INFORMATION TECHNOLOGY
 ABILITY TO WORK IN GROUPS
 TEAM PLAYER
 ABILITY TO WORK UNDER PRESSURE
PARTNER III - PERSONAL INFORMATION
Name: EdinamMicahel
Date of Birth: 1st October 1987
E – mail Address: Edinammike1987@gmail.com
 EDUCATIONAL BACKBROUND
MASTERS IN BUSINESS ADMINISTRATION
SPECIALIZATION: FINANCE
CARDIFF METROPOLITAN UNIVERSITY –UNITED KINGDOM
COURSE DURATION: 2011 – 2013

CHARTERED INSTITUTE OF BANKING

COURSE DURATION
2007 - 2011

BACHELOR OF ARTS IN ECONOMICS

KWAME NKRUMAH UNIVERSITY OF SCIENCE & TECHNOLOGY
GHANA
2005 – 2009

TEMA SECONDARY SCHOOL

BUSINESS
ACCRA – GHANA. 2001 – 2004
WORK EXPERIENCE
POSITION YEAR/DURATION JOB DESCRIPTION
BUSINESS DEVELOPMENT 2010 - 2015 Drawing up progressive plans for
MANAGER Barclays bank, to expand in
BARCLAYS BANK - GHANA Ghana and beyond
NATIONAL SERVICE 2009 - 2010 Advising clients on the accounts
PERSONNEL that they can open, which will
CLIENT ADVISOR reward them with the best
interest returns

SKILLS AND COMPETENCES

 STRONG COMMAND OF ENGLISH LANGUAGE
 COMPREHENSION OF FRENCH
 SOUND KNOWLEDGE ABOUT INFORMATION TECHNOLOGY
 ABILITY TO WORK IN GROUPS
 TEAM PLAYER
 ABILITY TO WORK UNDER PRESSURE