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TERM PAPER ASSIGMENT

NAME: GUY SCHAFRAD TIBAMWEMBA

ID NUMBER: 659640
SEMESTER: SPRING 2021
COURSE: BUS 4090A: STRATEGIC MANAGEMENT
INSTRUCTOR: DR. CHARITY MURAGURI

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Table of Contents
Overwie
w................................................................................................................................................1
Overview....................................................................................................................................3
G and J farms.............................................................................................................................4
Competitors analysis..................................................................................................................6
Internal environmental Analysis................................................................................................7
Strength:.............................................................................................................................7
Weaknesses:.......................................................................................................................7
Opportunity:.......................................................................................................................7
Threats:..............................................................................................................................7
POTER’s Value chain model.....................................................................................................9
External environmental analysis..............................................................................................10
Portfolio analysis.....................................................................................................................12

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Overview
Vision
Becoming the best and most hygienic poultry producer in Congo and adhere to international
norms and standards.

Mission

Our mission is to provide quality, fresh, and nutritious table eggs through a continued
development of the level of production, and adhere to quality standards in order to get both
our customers satisfaction as well as our employees’.

Core values

Quality: We shall always produce and deliver top quality products using eminent human
resources, with exemplary food safety standards

Efficiency: To be the lowest cost producer, invest in best practice and technology.
Integrity: to ensure honesty and fairness in all our actions and always strive do the right
thing.
Customer first: to make every decision and measure every outcome based on how well it
serves our customers.
Team work: Together we are stronger. We deliver more success through shared goals and
mutual support.
Community: We believe in the power of the communities we create and serve, our
community of team members and in giving back to the communities we live in.
Stewardship: We protect our environment, provide for the welfare of the animals in our
care, live up to our civic responsibilities.

Slogan
‘BETTER DIET, BETTER TASTE, BETTER EGGS’

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G and J farms
G and J farms is a fresh egg producer company established in 2019 by Guy and James whose
initials are used to form the name of the company. It based in the Eastern part of Congo. G
and J chose to invest in poultry industry because they taught that poultry farming is very
lucrative. With the appropriate space and the knowledge, it can be a great source of income.
Owners
Guy Schafrad: Guy Schafrad is a Congolese entrepreneur and undergraduate student at
Usiu, majoring in Business administration.
James kitati: James Kitati is an experienced veterinarian doctor, graduated at Katanga
veterinary medical school in 2018. Since then , he has been working as veterinary assisatant
at Alphapet veterinary clinic.

Name of the business: G and J farms.

Vision
Becoming the best and most hygienic poultry producer in Congo and adhere to international
norms and standards.

Mission

Our mission is to provide quality, fresh, and nutritious table eggs through a continued
development of the level of production, and adhere to quality standards in order to get both
our customers satisfaction as well as our employees’.

Core values

Quality: We shall always produce and deliver top quality products using eminent human
resources, with exemplary food safety standards

Efficiency: To be the lowest cost producer, invest in best practice and technology.
Integrity: to ensure honesty and fairness in all our actions and always strive do the right
thing.
Customer first: to make every decision and measure every outcome based on how well it
serves our customers.

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Team work: Together we are stronger. We deliver more success through shared goals and
mutual support.
Community: We believe in the power of the communities we create and serve, our
community of team members and in giving back to the communities we live in.
Stewardship: We protect our environment, provide for the welfare of the animals in our
care, live up to our civic responsibilities.

Slogan
‘BETTER DIET, BETTER TASTE, BETTER EGGS’

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Competitors analysis

Increasing protein consumption and rising incomes drive consumption of

eggs.  Around the world, consumption of eggs is on the increase. This increase is particularly
notable in developing countries where changing diets have people consuming a greater
number of calories from protein sources like poultry meat and eggs.  G and J target markets
will be household, restaurants and hotels, fast food shops, families and other small
businesses. Most poultry farmers in the region operate at micro and small level and produce
just enough for their personal consumption and sell a small quantity to few individual
customers. Their presence will not pose any threat to our expected success because we will
enter the market as a proactive, structured and focused organization. However, our biggest
competitors are businesses that import eggs from Ugandan eggs producers like Binzika farms
which offer their products at a lower price.

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Internal environmental Analysis.
SWOT analysis
SWOT analysis is a strategic planning technique that will help us identify strengths,
weaknesses, opportunities, and threats related to business competition or project planning.
Strength:
 Agricultural policy which aims to increase both the production and the
productivity of agriculture as well as increasing commercialization and
competitiveness in the market.
 Suitable weather that does noes require heating or cooling system
 Low cost of feed as the most important component of the feed will be produced
by ourselves.
 Eggs and chicken are not seasonal products and can be eaten at any time of the
year

Weaknesses:
 Outbreak of disease can ruin entire business in a go.
 The industry is dominated by very few companies that are able to participate
throughout the industry value chain.
 Lack of skillful workers
 High cost of imported chicken feed in the absence of locally produced feed.

Opportunity:
 The enterprise can go in to meat production
 Labor availability due to high unemployment levels among women and youth in
local areas
 The chicken feed is locally available in abundance and at low cost.
 Availability of land to produce our own feed
 Great number of potential customers, as there are loads of households and
businesses such as grocery stores, hotels and fast food restaurants that can’t do
without a daily supply of live chicken and eggs.
Threats:
 Existing market ( Ugandan exportors)

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 Contagious disease and virus outbreak are very deadly; if one of the chickens
should catch the disease, all of them will be affected and if it's not recognized and
treated early it will lead to the death of all the chickens which is a great loss for
the business. And also some of the diseases are also contagious to humans not just
between the chickens which will affect the workers and also those that eat it.
Poor infrastructure: road, water, etc

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POTER’s Value chain model
Value chain analysis is the process of breaking a chain into its constituent parts in order to
better understand its structure and functioning. The analysis consists of identifying chain
actors at each key actor of service supplier and relationships; assessing the role of private and
public service providers, or leadership, to facilitate chain formation and strengthening; and
identifying value adding activities in the chain and assigning costs and added value to each of
those activities. G and J mainly produces eggs. The main variable inputs into their
production process are hens, feeds, breeding and veterinary services. The operations
involved in production is rearing. The outbound logistics stages include storing eggs,
packaging and distributing them. The main actors in the commercial layer value are:
Producers: It is the first link in the poultry market chain. G and J farms harvest the products
and supply them to the second agent. In this stage the product is decided to be having limited
or unlimited supply for the next market.
Retailers: Middlemen that include supper markets another and large-scale retailer who
divides large shipments of produce and sell it to consumers in small units.
Consumers: they are the last actors in the poultry market chain.
Each of these actors has defined roles in the value chain as the products move down the
chain.

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External environmental analysis
Porter (2000) identifies another popular tool known as five forces model to analyze the
industry attractiveness of a firm. This model focuses on five forces that shape the
competition within an industry: a) the threat of new entry, b) the threat of substitutes, c)
the bargaining power of buyers, d) the bargaining power of suppliers, and e) the extent of
rivalry between competitors within an industry (Hill & Jones, 2001). According to Porter
(2000), this model helps a company assess the potential profitability of a particular
industry. Porter’s Five Forces Model served as a framework for examining the
competitive environment. The external analysis of G and J is as follows:

The threat of new poultry entrants is low

There are major challenges that new poultry farmers have to overcome. These include
access to inputs that require expensive capital, infrastructure like breeding houses, of
laying flock and medication, etc. It is thus difficult for new poultry farmers to gain formal
market access from emerging egg producers to the commercial sector. Especially, the
requirements for major market outlets or supermarket chains require formalized
distribution channels, which many small farmers can hardly have access to.
Bargaining power of suppliers is low

Raw materials for chicken are commodities that are generally cyclical in price and
availability. These materials have a significant effect on final production cost. Feed cost
is the single largest expense for livestock, and poultry production, often representing 60%
or more of total production costs. The number of primary producers of the main
components of chickens’ feed far outstrips the number of buyers, resulting in G and J
being a price taker.
Buyers’ bargaining power is high

Consumers have great influence on the market prices of the eggs that they purchase. As
the main competitors import their eggs from Uganda companies that massively produce
eggs and use low cost strategy to stay competitive on the market. Options to reduce the
bargaining power of customers include: increasing customer loyalty towards the national
industry through partnerships or loyalty programs, selling directly to consumers, or
increasing the inherent or perceived value of a product by adding features or branding.
Threat of substitution is low
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 Poultry, both chicken and eggs, is the most affordable source of protein. It’s direct
substitute competitor is red meat and poultry emerges the stronger of the two by far. Most
of people prefer chicken as it is better for cardiovascular health compare to other meats
and it is more affordable. Alternative products for chicken meat available are beef and
pork. Chicken has a lower cycle of production and lower prices, furthermore pork has
religions restrictions. Customers may consider it inconvenient to change meat sources
due to both economic and cultural reasons. Generally, in the world market chicken is a
lower cost substitute for beef and pork and the poultry industry over the years has been
more innovative in product development, branding and industry focus
Intensity of rivalry and competition is high

New entrants are free to enter but are limited in terms of capital and expertise. G and J
view international competitors in the national market as a threat to the demand for their
product.

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Portfolio analysis
Resources
Human resources: we will employ an average of 15 people that will work to accomplish our
mission.
Physical resource: these include all the infrastructure and materials

Capabilities
Innovation: G and J farms is able to come up with new ideas to impove our production
capabilities
Reputation: G and J farms will build a good image
Human resources: G and J farms has a work foce that is able to accomplish al the task
required for the production of eggs

Competences
Strategic planning: our strategic plan is designed us produce at our greatest potential and get
the most revenue we can get.
Sustainability: G and J farms will help its employers and local people that contribute to the
supply of feed to always meet their needs and express their greatest potential
Customer service: G and J farms will always out our customers first

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Appendices.
Proposed investment location map

Proposed start up budget

These are the key expenses you are expected to make when starting a medium scale but
standard poultry farm business in the united states of America;

o The cost for the purchase of poultry feed and poultry medication – 250,000.
o The operational cost for the first 3 months (salaries of employees, payments of
bills et al) – 300,000
o The cost for the constraction of poultry facility with the right fencing – 3500,000
o The cost for buying a large farm land – 2500,000
o Legal expenses for obtaining licences and permits – 800,000
o The total fee for registering the business 15000
o The amount required for the purchase of the first set chicks 1500,000
o The cost for acquiring the required working tools and equipment– 1000,000

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