Debre Tabour university

Faculty of social sciences and Humanities

Department of

Piazza, Debre Tabor

(Owner Manager of union milk and milk product provider)

Group member ID number

1.Awoke kasew.........................................................DTU/2125
2. Banchayehu fikire..................................................DTU/
3.Awoke Desalegn.............. ........................................DTU/3086
4. Getnet Amare ..........................................................DTU/
5. Eyasie Fisha..............................................................DTU/
submitted date /07/05/2013
1. EXCUTIVE SUMMARY
Nowadays milk and its products are highly needed in every people.
Union milk and milk product service provider will give this service in
university of Debre Tabor The main reason to start this business in this
area is that the availability of the product with proper service is very
limited interms of amount and time. As an organization union milk and
milk Product Company has mission to solve the problem by providing
the customer with the ability to get enough amount, best quality and fast
service. The bright future of enterprise for better expansion, product,
standardizations, improvement processing and development is well
designed and match dependent on:

 Facilitating service training for number of staff on product

processing and handling
 Introduction of manufacturing technology
 Standardizing the laboratory equipments
Our customers are mainly focus on student but we also have different
customers like teachers and employees of the campus. The services
given by our companies are whole milk, skimmed milk, butter, table
butter, cottage cheese, form ago, from those products the majors are
milk, butter and cheese. Since ,we expand large amount of money to
establish our company so we have to sell our product in fair price that
satisfies our customer and companies. The amount of money that we
need to start this business could be acquired from bank. This company
gives around 200,000 birr .This loan will be paid back per year and also
the other money is owned by each members of the company.
 2. Description of the business
As we know the most important thing for human being is health. To
have a good health we have to use different food, from which milk and
its product are the major one of it. Union milk and milk product
company provides a quantity and quality service for the peoples inside
university of Debre Tabor
2.1 Mission and goal of the business
Nowadays milk and its product s are highly needed in every people,
especially in university of Debre Tabor but the availability of this
product is limited. As an organization union milk and milk Product
Company has mission to solve this problem by providing the customer
with the ability to get enough amount, best quality and fast service. All
peoples found in this area will access the product with full satisfaction.
2.2 visions
As our mission stated in the beginning we have mentioned that our main
focus is providing milk and milk product service for university of Debre
Tabor The bright future of enterprise for better expansion, product,
standardizations, improvement processing and development is well
designed and match dependent on:

 Qualification of experts to higher level

 Facilitating service training for number of staff on product
processing and handling
 Introduction of manufacturing technology
 Standardizing the laboratory equipments
 Collecting feedback information from the country and abroad by
using information technology.
In addition to giving the service door to door we participate in the
production of raw materials for our service and increase the
 number of employee by creating job opportunity for each. Along
with the increasing in completion, our company will continue to
add new service to keep its customer base.
2.3 History
The main reason to start this business in this area is that the
availability of the product with proper service is very limited in terms of
amount and time (students can’t get the service when they need) so our
company provides the service daily. In addition to that according to
health problem most student are attacked by gastric problem as result
most of them are recommended to use milk and its product rather than
using different tablet and shorop so we fulfill the demand of student and
it’s also that we provide the service in fair price so that we attract many
customer in this compound.
2.4 Management
Although we all are graduated in natural resource mangement
department we also have additional knowledge for managing our
company. All of us has our own task in this company to specify
this we have shown our management structure

Management structure
Employee profession
1.Awoke kasew ………………… Manager
2.Alpha Anteneh………………………...public health service
monitor
3. Kalkidan Gosaye…………………………accountant
4. Kidist Mola ………………………………distributer
5. Selam Hagos ………………………………casher
2.5 Company size and location
Union milk and milk product service provider company is located at
students cafe why because the place is central for all customer and it
helps for our vision in widening process of service in the future.

3 .Market analysis
3.1 Competitive analysis: in this compound there are around three
competitors that give the same service with us that is giving service of
milk and milk product for people in university of Debre Tabor But there
is big difference between us from which the following are the major
once.
 Giving better quality production
 Lower production cost
 Door to door service
 Giving fast service

3.2 Marker research: according to our market research we collect

information by using interview, seeing the stored document about the
general demand of customer we get that full information.
3.3Target market: the target market of our business is providing milk
and milk product for people in university of Debre Tabor customers are
mainly focus on student but we also have different customers like
teachers and employees of the campus.

4. Marketing plan
4.1Positioning: our company provides milk and milk product for people
who need it in university of Debre Tabor

4.2Product: our company gives a service of milk products those are

whole milk, skimmed milk, butter, table butter, cottage cheese, formago,
from those products the majors are milk, butter and cheese.

The major benefits of the product

Bone Health: Dairy products provide calcium, which is essential for
bone growth and development. Bone growth is at its highest during
childhood and the teenage years and therefore it is important that
teenagers consume dairy products..

Teeth: Dairy products contain calcium and other tooth friendly

nutrients, which help teeth, grow and keep them healthy. It is the only
drink -excluding water which is recommended by dentists to be safe to
consume between meals.

Obesity: Studies have also found that consuming milk and dairy as part
of a calorie controlled diet can help us to lose weight -especially from
the abdomen, where fat deposits are associated with the greatest health
risks. Milk is also not a high fat product. Whole milk contains 4% fat,
semi-skimmed milk contains 1.7% fat, and skimmed milk contains 0.3%
fat.

Blood Pressure: Dairy helps reduce blood pressure. A diet containing

fruit and vegetables, low-fat dairy products and low salt helps reduce
blood .The potassium, magnesium and calcium found in dairy products
are all linked to healthy blood pressure.

Cancer: Studies have discovered that diets containing milk and dairy

products may significantly reduce the risk of certain cancers. Those who
drank milk as children and continued to do so throughout adulthood has
a significantly lower chance of developing breast cancer-

Cardiovascular disease: Consumption of milk and dairy has also been

associated with a reduced risk of suffering a heart attack

Eating habits: People who consume dairy products have better intake of
nutrients than people who do not consume dairy products.
4.2.2 Place: our service is distributed for a customer by using our own
employees with the help of private transport it gives a fast service for the
demand it needed.
4.2.3 Promotion: we have stated different general promotional plans
for our business, but since our company is found in startup process we
may not use different Media’s b/c of high payment for media stations.

 coupon: we have to use coupon to build customers awareness

and demand initially our company has budget 1,000birr for
promotional effort which include advertizing with the
coupon .the reason behind using coupon is that require a low
costs and it can be addressed to any customer easily.
 Word of mouse:-it is also another promotion satisfy for our
customer to purchase and use services or products offered by
company.
4.2.4 Price:-since we expand large amount of money to establish our
company so we have to sell our product in fair price that satisfies our
customer and company.

5. OPERATIONAL PLAN
5.1 Production: The facility that our company gives are milk and milk
products like milk, cheese, butter and others. Those products are sourced
from the main branch which is placed at Bahirdar.Our suppliers deliver
the products for us daily. The delivery process is done by the help of our
own transport system. We perform our own service by selling the
delivered goods in terms of contrat and door to door service. The
necessary equipments that we use in the process of providing our service
are:-
NO MATERIAL QUANTITY
1 Milk mulching 2
2 Cream separator 10
3 Churner 10
4 Tables 5
5 Vehicle 2
6 Trimming machine 8
7 Milk utensils 10
8 Sealing machine 4
9 Beam balance 5
5.2 Inventory management
Our inventory is finished goods i.e. milks and milk products. That means
we don’t produce those products rather we receive them from the main
branch which give such service from our supplies placed in Baharidar.So
the main job of union milk and milk products is delivering to customers.
We receive around 500 litter of milk per day. Since the demand of milk
is high we order every day. We don’t store milk in stoke because milk is
expected to be fresh.
The other service of our company is providing butter and cheese for our
customers. We order butter once per week .just its preferably is not as
much as milk. Especially cheese is needed for holidays most of the time.
So in order to protect from bankcrapcite we receive once per month. It is
also possible to store in stoke.
We kept our products in refrigerator for better preventation .the kind of
shipment we use is private transportation .means we use our own car in
order to overcome the problem of transportation since our aim is to give
fast service .the other thing is we use insulated car for the safety of our
products. There may be events that hinder the quality of our
products .that’s why to overcome such problems, we have a refrigerator
connected in the car.
5.3 Human Resource
In our company we have around 15 employees including the manager.
Those employees have their own job activity. The Company will be
managed by manager, whose individual areas of expertise cover many of
the functional aspects of the business. The Manager will serve as the
President of the Company, and will be responsible for Product Selection
and Sales, Marketing, customer service, accounting, shipping and the
general administration of the business. The manager has a long history
of experience in the Business and specifically in administration. The
other employers participate in activities such as driving, distributing the
service, cleaning the ware house and other. We also have an expert who
is well qualified in public health service monitoring.
We have two drivers, the one transport goods from the main branch and
deliver to our company and the one will distribute to the customers door
to door. In addition to that there is one helper to the driver who
facilitates the distribution of goods. Since the ware house and the goods
used to store milk and milk products must be cleaned we have two
cleaners the one who clean the ware house and the one who protect the
neatness of the materials. Because if the goods kept clean the goods will
be effected by bacteria as a result the expectation of the customer will be
low and we loss our customers.
The qualification we use for each job category is different means for
example for managing the company we employed a person who is
graduated in management and have a cushier graduated in accounting.
For a driver which have 3rd driving license but for the rest of job
category such as distributer ,cleaner etc .if they have certificate grade ten
it’s enough more.
The salary of the employees it is listed as follow
Employee Payment per month
Driver 1000birr
Helper 500birr
Cleaner 400birr
Distributer 700birr
 Table.2
ONE YEAR ACTION PLAN
Even though we have legal licensee, we don’t have insurance but we
give qualified goods to customer and also accept comment from the
customer.

6. FINANCIAL PLAN
Our plan for the success of this business related with finances are
 estimated sale
 cost of sale
 start up expense
 start up cost
6.1 ESTIMATED SALE: include sale in unit and birr for the next year with
first broken down by days
Types of Best case Worst case Expected Per amount
product
Butter 200 125 700 Per day
Milk 300 500 150 Per day
Skimmed 100 50 75 Per day
milk
Cottage 100 25 25 Per day
chess
6.2 Cost of sale (cost of good)

Cost for each goods is selling per amount

Type of product Best case price Per amount
Milk 10 Litter
Butter 95 Kg
Cottage chess 18 Kg
Table butter 110 Kg
Skimmed milk 8 Kg
Table.4
6.3 Start up cost
This designs the budgets to start our business. The cost of production for
start our business will require different labor and material. In our
business development we need the following expansive
1. Two car with automated refrigerator =250,00birr (rent)
2. Butter (100kg) =1500birr
3. Chesses (50kg) =3000birr
4. Milk (100liter) =1000sbirr
5. Table butter (100kg) =8000bir
6. Material facilitate =10,000birr
 Total start-up= 300,000birr
6.4 Financing requirement
A loan in the amount of 200,000birr will be acquired to purchase
the assets required and to complete the leasehold improvements
for the project. Which is acquired from bank the term of the loan
is 5 years at 7.00% interest rate?
Line of Credit: A line of credit in the amount is 300,000 birr will
be financed through a local financial institution. The line of
credit will be accessed to cover unforeseen shortfalls in working
capital required for the project. The interest on the line of credit
will be paid based on an as used basis and will be calculated at
10.00% based on the balance outstanding.
 7. Risk analysis
As we know any organization has its own risks. Like any other
organization, our organization has also its own external and internal
risks. We try to handle this problem as much as possible. The risks are
listed below with their risk management.
7.1External risk: Weather and climate change brings external risk in our
organization. The handling and transporting our products is granted by
the organization, by using insulated and and galvanized materials and
Lorries. If there is emergency of new competitor we will have to provide
better quality of service that needed by customer. And also we can get
some type of problem on the side of supplier to manage this problem
our company kindly informs the problem to customers early.

Income statement
Union milk and milk product service provider

Revenue Year1 Year2 Year3

Milk sailing 438,000birr 538,000bir 588,000birr
Butter sailing 1,825,000birr 1,875,000birr 1,887,000birr
Cottage chess 197,100birr 200,100birr 2,009,000birr
sailing
Table butter 7,300,000birr 7,300,000bir 7,400,000birr
Skimmed milk 29,200birr 29,900bir 30,900birr
Total 9,789,300birr 9,970,000birr 29,995,900birr

Expense Year1 Year2 Year3

Wage 31,200 birr 32,200birr 34,200birr
Transport 300,000 birr 300,000birr 400,000birr
Material 10,000 birr 10,5000birr 105,400birr
Car oil 182,500 birr 190,500birr 191,500
 Promotion 1,000birr 500birr 500birr
Good 129,000 birr 200,000birr 210,000birr
Amount 20,000birr 20,000birr 20,000birr
payable
Salary 90,000 birr 120,000 123,000birr
Total 763,700 968,200 1,084,600

Income statement
Union milk and milk product service provider
Year1
Net income (profit) =revenue-expense
9,025,600birr =9,789,300birr-763,700birr
Income statement
Union milk and milk product service provider
Year2
Net income =revenue-expense
9,001,800birr = 9,970,000birr-968,200

Income statement
Union milk and milk product service provider
Year3
Net income =revenue-expense
28,911,300birr = 29,995,900birr-1,084,600birr