Assignment 1: You are assigned to prepare a business plan of a small /

family business of your choice. A business plan always helps us to

examine a current market, identify customers’ needs and wants, plan
for future actions, and predict possible expenses

R2003D10581013
Business Methods and Procedures UU-MBA-714-ZM-22034
Maria Georgakalou
24 January 2021
 Business Plan

For

Plainbury Seed Producers (Private) Limited

2021 – 2025

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Table of Contents
1. Introduction..................................................................................................................................1
1.1 Background.................................................................................................................................1
1.2 Governance................................................................................................................................1
2. The Main Goal / Objectives...........................................................................................................2
2.1 Main Goal...................................................................................................................................2
2.2 Mission.......................................................................................................................................2
2.3 Vision..........................................................................................................................................2
2.4 Values.........................................................................................................................................2
3. Market research............................................................................................................................3
3.1 Target market.............................................................................................................................3
3.2 Marketing Research....................................................................................................................3
3.3 SWOT Analysis............................................................................................................................4
3.3.1 Strengths............................................................................................................................4
3.3.2 Weaknesses........................................................................................................................4
3.3.3 Opportunities......................................................................................................................4
3.3.4 Threats................................................................................................................................5
3.3.5 External Environment – PESTEL ANALYSIS.................................................................................5
3.4 Market position..........................................................................................................................6
3.5 Unique selling position...............................................................................................................7
3.4 Anticipated demand...................................................................................................................7
3.5 Pricing strategy...........................................................................................................................7
3.6 Growth potential........................................................................................................................7
3.7 Research & development (R&D)/innovation activities...............................................................7
3.8 Intellectual property strategy.....................................................................................................8
4. Sustainability plan.........................................................................................................................9
4.1 Environmental/resource impacts...............................................................................................9
5. Marketing Plan............................................................................................................................10
6. Competitors.................................................................................................................................11
7. Financial Needs............................................................................................................................14
7.1 Resources.................................................................................................................................14
7.2 Cashflow Forecast.....................................................................................................................15
8. Possible investors........................................................................................................................16
9. Action plan..................................................................................................................................17

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10. Conclusion...............................................................................................................................18
References..........................................................................................................................................19

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 1. Introduction

1.1 Background
Plainbury Seed Producers (Pvt) Ltd is a private limited company which was registered in
Zimbabwe in July 2015 under the Company Act Chapter 24:03. The company is managed by two
(2) agronomists who graduated together at the University of Zimbabwe. The aim of the company
is to provide small holder farmers in the rural areas situated in Manicaland Province of Zimbabwe
with breeder seed for maize in order for them to plant and produce more seed through contract
farming. This means that the company will provide the farmers with the seed and herbicides
adequate for the agreed upon hectarage. The farmer will plant accordingly and once the maize is
matured; the company will buy it from the farmer at the agreed upon price. The seed will then
be packed and sold commercially in shops around the country.

The details of the company are stated below:

Registered office: 805 Chitepo Street, Harare, Zimbabwe
Bankers: Agricultural Bank of Zimbabwe

1.2 Governance
As a way of empowering the community, shares have been sold to the farmers so that they
also own part of the company. The shareholders are represented by a board of directors
which was appointed to oversee the managing director who runs the company on a day-to-
day basis. The board of directors will be trained in governance issues so that they can
provide strategic vision and direction of the company through providing advice to
management on a regular basis. The shareholders will attend the annual general meetings
which will review the company performance and decisions on the business direction will be
decided.

This business plan is therefore formulated to provide a unique strategic direction to Plainbury
Seed Producers so that the company can trade profitably, reach its set out goals and maintain
a competitive advantage. As quoted by Svarova and Vrchota (2014), Kotler stated that “if the
company has the same strategy as the competitors, it actually does not have a strategy. For
these reasons it is necessary for the company to base this strategy on their own market
position and build on their distinctive competitive advantage.”

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2. The Main Goal / Objectives
2.1 Main Goal
Plainbury Seed Producers aims to be a producer of quality certified maize seed and gain 5%
market share nationally in the next 5 years. The company will contract five hundred (500)
small holder farmers as seed growers for maize and efficiently process and market the seeds
in Zimbabwe. In 2023 the company will increase the number of farmers to one thousand
(1000) by engaging farmers in the Mashonaland East province where the rainfall patters are
favorable for summer crops. This increase will translate to increased seed sales as well as an
increase in the market share. The company’s long-term goal is to grow into a regional
supplier supplying seed in the Southern Africa countries and to teach the farmers
environmentally sustainable farming methods (Porter, 1985)

2.2 Mission
To produce quality certified seed and gain market share to 5% nationally. To fairly engage all the
company’s stakeholders for a sustainable relationship and to create relationships with
communities that increase the presence of the company.

2.3 Vision
To be a preferred supplier of quality seeds and improve community living standards in
Zimbabwe. Plainbury Seed Producers wishes to increase the seed varieties of maize that the
company supplies in order to meet the needs of smallholder and commercial farmers.

2.4 Values
a) Recognition – we value and Orecognize the contribution of farmers within communities.
b) Quality – we strive to produce top quality seed through continuous testing and
improvement.
c) Stakeholders – We appreciate our partnership in providing products that contribute to
feeding ad empowerment of communities.

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 3. Market research
3.1 Target market
For any business to thrive, there is need for it to have adequate knowledge. This includes
knowledge on the products to be manufactured and sold, cost effective technologies to
utilize during production, the markets in which the goods and services will be sold, prices to
sell at, and promotion techniques to be applied. This reveals that knowledge is one of the
most vital resources that an organisation requires (Hertog & Huizenga, 2000). The target
market for Plainbury Seed Producers is all farmers in Zimbabwe and in the long term, the
company would like to sell to the Southern African region market. The company seeks to
packaged seed will be sold through already. Whilst the seed is growing in the fields, the
company will be engaging with various outlets in the different parts of the country to ask
them to sell the seed. The seed has become so popular in kiosks in urban Manicaland. All
farmers in Zimbabwe who are engaged in field crops production have potential to be
Plainbury Seed Producers customers for the seed that is being produced. The company is
going to increase the quality of packaging material and the actual seed itself so that
customers who buy once can be repeat customers the following season. The packs sizes for
maize will be 2kg, 5kg, 10kg and 20kg. The small size packs will be used to target the
subsistence farmer who only produce for household consumption because of limited
resources. The company is also targeting peri-urban farmers who are composed of 85%
females as most males are involved in other activities. Subramanian (2018), in his article
mentioned that “The role of women in public life and in the social context has changed in the
last few decades. From the role of a bread maker it has changed to bread winner in many
cases. Business and cultural environments have exerted a great influence on these roles.”

3.2 Marketing Research

Plainbury Seed Producers conducted a market research in order to gain an understanding of
the seed market, preferred seed varieties whether early or late maturity, get an
understanding of the major suppliers in the industry as well as threat to the industry. The
research also sought to get customer feedback on the seed germination and growth patterns
as part of the performance review in order to ensure that the seed meets customer needs as
well as establish competitive advantage for the company Five(5) farmers from each district

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were give journal in which to record the exact date when the seed germinated, any diseases
that attack the crops any changes in leaf colour, measure the height of the crop and state the
maturity period.

3.3 SWOT Analysis

Plainbury Seed Producers conducted a Strengths Weaknesses Opportunities and Threats
(SWOT) analysis so that the company can assess its competitive position and thereafter
develop an informed strategy in order to gain competitive advantage (Ritson, 2011).

3.3.1 Strengths

Plainbury Seed Producers identified the following strengths which the company needs to
capitalize on to give them competitive advantage over other companies in the seed industry
(Porter, 1985)
a) Local seed company
b) Strong community involvement which increases market penetration
c) Provision of affordable seed
d) Opportunity to meet individual customers more than bigger
companies
e) Community seed production which identifies with the community
f) Technically competent staff who understand the seed production

3.3.2 Weaknesses

a) Start –up company which lacks strong reputation

b) Limited resources
c) Lack of research capacity

3.3.3 Opportunities

The following are opportunities that the company has identified in an endevour to attain
competitive advantage (Morden, 1993)
a) Potential grant funding from donor

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b) Support from government seed research departments
c) Possible markets other provinces which can be tapped into
d) Increase in number of products which can increase market penetration.

3.3.4 Threats

a) Large seed houses flooding market.

b) Drought
d) Political upheaval
e) Diseases and pestilences (Pandemics)

3.3.5 External Environment – PESTEL ANALYSIS

This strategic tool has been used to analyze the factors operating in the external environment
that may have an impact on the company.
a) Political Factors
i. Political instability may interrupt company operations
ii. Level of corruption which might affect applications for licenses and approvals
required
iii. Bureaucracy and government interference on research projects
iv. Legal framework for contract enforcement
v. Trade regulations - should the company need to import seed varieties from
other countries
vi. Taxation - currently agricultural produce is zero rated,

b) Economic Factors
i. Labor costs and productivity in the economy
ii. Business cycle stage (e.g. prosperity, recession, recovery)
iii. Economic growth rate
iv. Unemployment rate
v. Inflation rate – the purchasing power of the farmers might be depleted by high
inflation

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 vi. Interest rates – these will affect loans borrowed

c) Social Factors
i. Demographics and skill level of the population
ii. Education level of the farmers
iii. Culture and norms in the community
iv. Gender issues or roles
v. Entrepreneurial spirit and societal views.
vi. Attitudes (health, environmental consciousness, etc.)

d) Technological Factors
i. Technology's impact on seed production
ii. Impact on maize seed production cost structure
iii. Impact on maize seed value chain structure

e) Environmental Factors
i. Weather patterns
ii. environmental pollution regulations
iii. Attitudes toward “green” or ecological products

f) Legal Factors
i. Discrimination law
ii. Copyright, patents / Intellectual property law
iii. Consumer protection and e-commerce
iv. Employment law
v. Health and safety law

3.4 Market position

The seed that is being sold by Plainbury Seed Producers costs less compared to that being sold
by other companies because they are not hybrid. Hybrid prices are almost double the prices of
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OPV maize seed. Hybrid seed is considered high end for competitive farmers but the target
market is medium low-end famers for the company’s maize products.

3.5 Unique selling position

The mantra of Plainbury Seed Producers is seed produced locally for local farmers for the
support of the local economy. Continuous marketing activities and product support in the
market through field days, demonstrations plots and shows. Tenacious marketing activities will
be maintained as long as the company is in the market.

3.4 Anticipated demand

There is potential for Plainbury Seed Producers to produce 2000 Mt of maize seed and market
it in Zimbabwe. Farmers buy seed once a year in general during the rainy season. The company
will looking into taping into areas practicing irrigation and can purchase seed earlier than other
dry land farmers.

3.5 Pricing strategy

Plainbury Seed Producers uses the penetration pricing method and will move onto using the
competitive pricing method in 2023. There are players in the market with similar products to
Plainbury Seed Producers which we cannot over price or under price. The method also is easier
to use and manage.

3.6 Growth potential

Plainbury Seed Producers anticipate to grow by 100% annually for the next five years. The
growth will be driven by strong marketing and product range increase. The marketing will
introduce more farmers to Plainbury Seed Producers products.

3.7 Research & development (R&D)/innovation activities

Plainbury Seed Producers is innovative in that it has allowed smallholder farmers to own shares
through a company which has empowered farmers. Farmers are able to buy shares either using
cash or using farm produce. The ownership of the company is within the farming community.
The major focus currently is in the product testing. The company has no research and
development at the moment. Designing and development of packaging is ongoing and being
refined. The logo is now almost final and will be made permanent and registered as a
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trademark. The company is in the process developing innovative mechanisms to engage and
work efficiently with small holder farmers

3.8 Intellectual property strategy

The company plans to register its logo as a registered trademark so that it cannot be used
by other people. There is a need to start documenting and registering innovations such
that they become company property. The assets such as cars, laptops and furniture are
insured against loss, damage or theft.

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 4. Sustainability plan

4.1 Environmental/resource impacts

Farmers have potential to use practices which increase environmental damage through river
bank cultivation and over use of soil. Plainbury Seed Producers will encourage its customers
and farmers to use sustainable methods such as conservation agriculture, water saving
techniques and safe disposal of waste to keep the environment safe. The waste material from
cleaning tools and rotten seed will be safely disposed of so that there is no seepage to other
water sources occurs. The company activities generally have no major environmental effect.
The farmers need to be educated on soil `water conservation and contour ridge systems to
reduce erosion hence reduce run off into rivers which cause siltation.

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 5. Marketing Plan
Plainbury Seed Producers has entered the market through local communities as they are part
of the seed growers who then share the news about the seed to the other farmers. The seed
for Plainbury Seed Producers is distributed through local shops. Plainbury Seed Producers staff
will be attending agricultural shows and other agricultural fairs to showcase its products.
Farmers in areas where the seed has been bought and grown successfully will be used for
testimonials and calendars, fliers and pamphlets with the information will be developed and
shared in other areas. Farmers accept testimonies from fellow farmers. Plainbury Seed
Producers will train the staff of the retailers on product characteristics so that they can cascade
the information to the customers and farmers and also be able to respond to any questions.

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 6. Competitors

Plainbury Seed Producers have researched and analysed the seed companies currently
operational in Zimbabwe. The company intends to capitalize on the common weakness that it
has identified in all the companies and use this to attain competitive advantage (Prahalad and
Hamel, 1990). Below is the analysis:

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Competitor Established Size Market Value to Strengths Weaknesses
date share (%) customers
[Compan [When were [Number of [Estimated [Unique value to [What are your [What are your
y name] they staff] percentage customers. E.g. competitor’s main competitor’s main
established?] of market convenience, quality, strengths?] weaknesses?]
share] price or service?]

Lacks focused products

Service, quality
A lot of resources. Strong for individual farmers. No
Seed Co 1940 100+ 65 and familiar to
advertising team concern for farmers on
customers
personal
Lack level
of close
Strong brand name
Pannar 1984 20+ 10 Well capitalised community
relationships
No quality relationships
High end
Pioneer 1993 20+ 15 High technology use focus with customers.
products
Small product
Not well range
spread with
Agriseeds 1990 20+ 2.5 Cheap prices Cheaper prices close contacts with
farmers
Regionally based and no
National
1987 15+ 2.5 Convenience Fair price close relationships with
Tested
the farmers
Seeds

Prime Seeds 1996 10+ 1 Price Wide range of crops Poor national coverage
ARDA seeds 2000 10+ 1 Convenience Government supported Poor investment ability
Internal knowledge of
Mkushi Seeds 2014 10+ 0.04 Service Still unknown
most seed companies

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 No wide coverage and
Small staff complement
Sandbrite seeds 1997 3+ 0.002 Convenience focus on
hence is to sustain speciality crops
Syngenta 2015 7+ 0.5 High capital capacity Very new in the
Klen Karoo 2014 20+ 2.458 New products High capital supply market new
Relatively

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 7. Financial Needs

Plainbury Seed Producers intends to make a profit of 25% of the gross sales for the next
five years. The major cash flow demand for Plainbury Seed Producers is during buying
period where there is greater outflow than inflows. Plainbury Seed Producers requires a
minimum of injection of US$300,000.00 to function smoothly. Plainbury Seed Producers
will source funding from banks. The company has formed relationships with banks that
will enable it to access loans for use. The company will annually analyse its costs so that
major cost drivers are targeted, monitored and managed. The cost of processing and
transport costs will be reduced by 25% in the second year. Plainbury Seed Producers
needs funds to cover operational costs to move the company forward. There are no
start-up costs in the projections presented below.

7.1 Resources
The company is currently leasing offices in Harare and a warehouse for seed processing
in Mutare, Manicaland. The team has realized that there is need to recruit additional
staff members who are qualified to carry out other support functions required by the
company. The additional staff to be recruited are an Accountant, Accounts Officer,
Marketing Officer, and 2 Merchandisers. The posts will be advertised in the national
newspapers to get a large pool of respondents. As part of the skill retention strategy,
the staff will be motivated by providing a conducive working environment and perks
that are in line with market rates. Taylor (1911) stated that “The principal objective of
management should be to secure the maximum prosperity for the employer, coupled
with the maximum prosperity for the employee.” All staff have valid contracts which
are reviewed and are continuously renewed. The contracts state the responsibilities to
be carried out by staff members. Staff performance appraisal and skills audit are done
annually to ensure that the skills match the work required (Cole, 2004)

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4.2 Cashflow Forecast

Assumptions
a) That yields targeted will be achievable in the event that there is no devastating drought in
the operational areas.
b) There is no economic meltdown in the country which can affect the growth of sales
through lack of purchasing power
c) The interest rates at the banks do not rise drastically to affect cash flow.

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5. Possible investors
Inventors, Economic Benefits and Justification
Once the board approves, Plainbury Seed Producers intends to issue 50000 shares of USD1.00
each as a way of raising funds as well as capacity building the farmers to become company
owners. In addition to applying for a loan at the bank, the company is considering applying for
door funds as its mission fist into the mandates of most agricultural projects being implemented
by NGOs. Besides the economic empowerment of the small holder farmers, there are socio-
economic benefits that can also be realized by this engagement i.e the empowerment of women
in farming, training of women to utilise machines as labor saving devises as well as training them
in financial literacy so that they can better manage their household income (Grosser, Adams &
Moon ,2008).

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8. Action plan

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 9. Conclusion

The business plan for Plainbury Seed Producers demonstrates that the company is a viable
business. The management have also included details that show that they have looked into
sustainability and profitability issues. Also considered together with growing the business are
environmental, gender, financial literacy issues which form part of the company’s corporate
social responsibility. The business plan can be developed into a full proposal and presented to
doors for funding. The business plan is an instrument that can be used both internally and
externally to communicate the status, direction and the goal of Plainbury Seed Producers. The
company needs to continuously build on the relationships that it has with the communities that
it works it. The relationships form part of its core competencies which aid its competitive
advantage as the analysis on competitors shows that they are disconnected from customers.

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 Den Hertog, J. F., & Huizenga, E. (2000). The knowledge enterprise: Implementation of

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