College of Business & Economics

Department of Management

Prepared by: - Ashenafi Alemu

Id/no: - 0018/10

Submitted to; Instructor Yonatan.M

Submission date; 24,2020 Gc

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Table of Contents
EXECUTIVE SUMMARY..........................................................................................................................1

Project objectives..................................................................................................................................2

General..............................................................................................................................................2

Specific..............................................................................................................................................2

MISSION............................................................................................................................................2

VISION...............................................................................................................................................3

Considered in selecting the project.......................................................................................................3

Project component...........................................................................................................................3

Project location.................................................................................................................................4

MARKETING ANALYSIS..........................................................................................................................4

Promotion.........................................................................................................................................5

Distribution...........................................................................................................................................5

Source of revenue.................................................................................................................................6

Organizational structure.......................................................................................................................7

Warehouse manager (mr.ahmed yimer)...............................................................................................7

Purchasing manager (alemu hurisa ).....................................................................................................7

Marketing manager (abdi ali)................................................................................................................7

Financial analysis...................................................................................................................................8

Amount of row material and their cost.................................................................................................8

OPERATIONAL PLAN..............................................................................................................................9

INDUSTRY ANALYSIS............................................................................................................................10

SWOT analysis of the venture.............................................................................................................11

Strength..........................................................................................................................................11

Weakness........................................................................................................................................11

Opportunities..................................................................................................................................11

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 Trait.................................................................................................................................................11

Organizational plan.............................................................................................................................11

Members of the organization..............................................................................................................11

Qualification and Sub-Experience.......................................................................................................12

General Manager............................................................................................................................12

Warehouse manager.......................................................................................................................12

Marketing manager.........................................................................................................................12

Waiters............................................................................................................................................12

Barista.............................................................................................................................................13

Guard..............................................................................................................................................13

Facilitator in intelligence center..........................................................................................................13

Risk analysis........................................................................................................................................13

Low demand.......................................................................................................................................13

Perishable habit of product.................................................................................................................14

Failure of supplier...............................................................................................................................14

In efficiency in distribution channel....................................................................................................14

Unwillingness’ to pay for some services..........................................................................................14

Inflation...........................................................................................................................................14

FINANCIAL PLAN..................................................................................................................................15

Amount of row material and their cost...............................................................................................16

Balance sheet......................................................................................................................................17

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EXECUTIVE SUMMARY
Cyber Coffee recreation and intelligence center is sole proprietorship they
will be located in Hawassa in the side of Haile resort. I contributes 570,000
thousand birr . The venture will have four major division the first unit i.e.
mama’s kitchen café and restaurant provides special type of foods both
tradition and modern foods which are not accessible in the university and
even some of them are not available Hawassa city. For instance it provides
unique traditional foods like genfo , chechebsa and kinche with cultural
coffee ceremony the second unit of the venture will be recreational center
which include pool, jotoni, kerenbula and computer games I intend to
include these units to My venture because here is no relational center where
everyone gates these games in one roof .The third and the most significant
unit of the venture is intelligence center or work shop unit where that will
provides some raw materials and manually operating mini machines for
students freely. Everyone who has the talent and skill will come and
produce a product of his/her talent. The venture will provide service freely
that means raw material cost will be covered by the venture while the
margin (profit) after selling the product will be divide between the students
who produce it and the venture. The fourth unit of Cyber Coffee recreation
and intelligence center will be meeting hall here short term training,
seminars as well as discussion and debates will be held in hot and burning
issues like global warming HIV aids sexual harassment, drug abuse. Gender
issues this will be done in collaboration with Hawassa student union office
and other clubs additional I will rent decorated hall for birthday parties, half
life and other special ceremony held by graduating students(GC) and others
with minimum cost. I give special discounts for GC students as they
celebrate lot of days like get together party, color day, culture day and other
days.

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It has many distinctive features that will enable as to be competitive in the
market among them I provide absolutely new service i.e. the third unit and
differentiated service in others units. As of the finance is concerned the
venture will consume a maximum of 3500000 birr that will come from
different sources including owner contribution and by searching for
sponsor.

Finally as the sole proprietorship is new type and have expanding market
potential I will invite potential investors to work with me to promote the
business as well as help Hawassa students who have the talent and skill
but don’t get the chance to exploit it.

Project objectives
General
This project is started considering low supply and high demand for the
product and service which is mentioned in the introduction part, in
Hawassa.this project narrows the gap between the demand and supply and
to increase revenue or income for the business.

Specific
I have set the following as our objective to be accomplished

1. Minimize the problem of recreational and intelligence center.

2. To create job opportunity
3. To generate income for the owner
4. To respond to customer specification up on their request.
5. TO render quality service to customer

MISSION
 My project mission is to provide Hawassa students with input that
will help them to produce a product of their talent and skill.

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  To make Hawassa student feel at their home by providing them home
foods and fresh foods which they couldn’t get from compound lounges
and even from other restaurant with in Hawassa city.
 To refresh student up on stress and depression.

VISION
In short CYBER COFFEE recreation and inelegance center has the
vision of becoming the preferred recreation restaurant and café as well as
intelligence center in eyes of Hawassa communities. In long term I have
the vision of expanding My service to whole Ethiopia and export My
product to foreign country to earn hard currency.

Considered in selecting the project

 There is high demand for the projected products and service
 Shortage of recreational and enjoyment service in the compound.
 The projects input is easily available
 To develop and strength cultural interlink age of Hawassa
community.
 Considering benefits which is greater than cost.

Project component
The project provides different type of product and services in each unit. The
first unit will provide the following product

 Chase, meat and hamburger , cheese burger

 Fresh cheese with bread or injere as of their specification
 Cookies
 Fresh fish and different on customer request for the moment but
latter based on demand observed I will add it to product menu
 Shorba: - especially for Muslim students on the days of fasting.

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  Kinche:-which is not available even outside the campus throughout
the city. it is one of traditional food of Ethiopians prepared from wheat
or barley and butter
 Chechebsa :- which is traditional food of Ethiopia . it is difficult to
obtain this product in most restaurant but I have the potential to
provide it to Hawassa students .
 Genfo :- it is widely consumed and demanded traditional food in
Ethiopia . as it is perishable by its nature students are requested to
fill form for its preparation for next day or sometimes latter with
agreement of partial or full pre payment .

within the second unit includes

 Pool :- through there is pool house in My campus but I will

differentiate our product compared to competitors
 Karanbul:- there is no service in My compound
 Jotoni :- there is clear market gap in the area
 Computer game :- different games will be provided
 Table tennis ;which is modern and attractive.

Project location
This proposed business is going to located in Hawassa specially
it will be between Hawassa university and Haile resort at free
space. I am going to build a multi-dimensional building which
encompass appropriate space for all the proposed business.
The place is selected because of its geographical location of at
the main road for the students to get in to and get out of from
the University. So, that it will be easy to assess by the target
customers.

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MARKETING ANALYSIS
This project is the part of business service, it has its own contribution for
the national development. My target costumer is primarily goes to Hawassa
university students because of the students mostly allocated in between 18-
36 years age this targeted customer wants to spend their time recreation
and invitation areas using this as stimulation for My business. I reach my
success the second target’s are the local people which live Hawassa after I
satisfied the need of the primary target customer I expand My business to
the local society specially serving jewelers, home denatures and paints
which is produced by Hawassa students in intelligence center.

I have a competitive advantage over all industries because I serve differently

from the other not only this but also I have unique feature like traditional
foods and material and the customer who come to My recreation center city
get every service in one room.

There is only 6 lounges in the university the students numbers recently over
25000 students with the some and limited services. Since the student’s get
recreation out of the campus so I will have a great advantage over My
competitors by providing multiple services in one room.

The existing lounge and recreational sectors have many weaknesses as I

tried to assess and adding if to My venture limited service given by the
industry.

Promotion
Preparing broacher and pamphlets and distribute for the students
using the word of mouth ,the promotion job is completed through the
campus also using the billboards and conducting some concerts in
Hawassa areas I try to promote for the people.

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Distribution
Make the business it’s cerate to Hawassa and distributed its
service in novel ways the product that the center provide is mostly
perishable fresh foods are there to this business start to serve
dorm to dorm distribution for example of the students have
demanded to eat ‘genfo ‘for his breakfast is only expected from him
is pay the payment and order in night after a one they completed
payment I deliver his order as his need of want but this kind of
distribution is provided for special kind of products dorm to dorm
distribution also provided for students who want to take contract
for one month paying the invoices.
The students have no sufficient recreational in side of the campus
as the result of this costumers forced to get services out of the
campus. This kind of service taking is the most expensive one
implicitly as well as explicitly. I try to hear the heartbeat of the
students and what the students need in day to day life career.
Considering those factor to assess the future demand for my
business. I also try to look like the price because the price is my
determinants the result is appreciable.

Source of revenue
No Description Amount(p*q)

1 sale 532000
2 Service 427000
3 Rent 13000
Total 972000

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Organizational structure
General Manager of CYBER COFFEE recreation and intelligence center has
different responsibilities of relating with the general management of the
center. The general management is responsible for controlling over all
activity of the four divisions, preparing annual report of the center loan
agreement different opportunities for the center and also for the employees
of the center by the government and NGO’s searching an exploited
marketing potential outside the campus. For the success of the center at the
beginning of fiscal year the manager is responsible for proper allocation of
each division and also leading any meetings which are held in the
organization, experience sharing for the managers at the center by
preparing different training programs.

Warehouse manager (mr.ahmed yimer)

For efficient use of inventories and raw materials, punctual, loyal and
responsible manager is available with responsibilities of:- he/she is
accountable for any discrepancies related to inventories and supplies
recording amount of inventories which are out and in from and to the
warehouse and preparing monthly report for the general manager. Preparing
suitable area for easily fragile and perishable inventories.

Purchasing manager (alemu hurisa )

The purchasing manager of the venture will be responsible to purchasing
materials needed by all four the type of product and service of the venture.

Marketing manager (abdi ali)

He is manager with critical responsibilities in the center. The marketing are
responsible for searching of customers, doing marketing research about the
market evaluating competitive performance deciding distributing channel of
products, searching for the appropriate way of promotion in order to create
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positive image in the customers mind preparing different exhibitions,
bazaars and expose to sell products directly to the customer this will be
done by collaborating

Financial analysis
The major source for the business is going to be equity, debt, sponsors.

-The equity share will be covered by personal contribution of the

partner by contributing 1 200000 birr.

-Debt I am going to use also debt license from different micro-finance

institution and commercial bank of Ethiopia amounted 100000 birr.

-The remaining will be covered by assessing different welling sponsors

to support my business. But there is also a back up planning in
case of you have fill to get sponsors the parties will contribute their
own.

Amount of row material and their cost

Equipment Amount Unit price Total
Boiling 1 60000 60000
machine
Stove 2 10000 20000
Chairs Café 40 300 1200
Meeting hall 100 300 30000
Recreation 15 300 4500
Intelligence 15 300 4500
Tables
Café 10 800 8000
Meeting 2 800 1600
hall
Recreation 1 800 800

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 Intelligence 10 800 80000
Pool table 2 25000 50000
Kerenbola 1 18000 18000
Jotani 2 1500 3000
Tape 1 3000 3000
Projector 1 25000 25000
Laptop 1 13000 13000
Speaker 1 2000 2000
Refrigerator 1 15000 15000
Grant total 176,900 350,400

OPERATIONAL PLAN
CYBER COFFEE recreational and intelligence center in its effort to address
the need and demand of the student it provides full – fledged service on four
divisions from those three of them are fully service providers . the cafeteria
and restaurant which provides fast foods and fresh drinks with fair price,
the recreational center will provide different games like pool, kerembla, joton
and different computer game, the third one is the meeting hall which
handle service relating with meeting, training, seminars and also renting the
hall for different ceremonies like, ceremonies like birthday half life and
different programs prepared by GC.

The division which makes the center peculiar is the intelegence center
which produces some hand made products by students which have
potential, talent and skill for the production process some raw materials will
be needed from different potential suppliers form the campus as well from
outside the campus (suppliers in the Hawassa town) and the potential
suppliers are selected according to their potential to provide the raw
material continuously with list price and quality.

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From those suppliers some are listed below.

 Stationeries:- for those supplies like paper, painting brushes paints,

and related materials
 Construction material shops:- cutters, hummer woods and other
supplies
 Most of the production are done with hand and also there are some
handy operated machines like driller, cutter and so on so there will be
guide person for those Boutiques:- for wools fabrics strings

INDUSTRY ANALYSIS
In fact, it is difficult to clearly put the industry of the venture. Hover ever, it
belongs to service industry as a venture provides service in all of its four
units although to some extent production is involved in all future units.

I need to examine the conflictions of the industries separately. For example,

the cafeteria service is almost expanding every time because this industry is
always essential and necessarily where peoples living together like the
students of Hawassa exists. So I am sure about the expanding nature of
the cafeteria and fast food service. When I come to the recreational division
it is obvious that the industry will expand with an increasing rate because
the customers of the business or the target market of the business are
although teenagers which are the very sensitive to pleasant recreational
centers like the one which is going to be managed by my business.

The other one is the talk show hall in fact this kind of industry is in almost
in the stage of an existence in Ethiopia context. But, there is no reason that
I cannot be successful if you do it effectively and efficiently by taking in to
consideration the culture back ground of Ethiopia. Promoting this industry
is also my target, and I hope all it will expand efficiently.

SWOT analysis of the venture

The venture will have some strength, weakness, opportunity and trait:-

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Strength
 Solve its problem through discussion
 Serve its customer as their demand and preference
 Tries to avail product and service as customers need

Weakness
 Shortage of skilled man power
 Weak internal control system

Opportunities
 Accessibility of untapped market
 Favorable working environment

Threat
 Fluctuation of price for the purchase of raw materials
 Attitude of the student towards modern food

Organizational plan

Members of the organization

 General manager
 Warehouse manager
 Marketing manager
 Waiters of recreational centers
 Facilitator in intelligence center
 Guards
 Baristas

Qualification and Sub-Experience

General Manager
 First degree from known university by business administration
or management.

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  At least two years experience
 Fluent speaker and good in behavior
 Salary 1500 birr
 Sex female or male

Warehouse manager
 Diploma from known collage by procurement and supply chain
management
 At least 1 year experience
 Sex female or male
 Salary 900 birr

Marketing manager
 Diploma from know by marketing management
 At least 1 year experience
 Salary 900 birr
 Sex female or male

Waiters
 Qualification grade 8 completed
 Waiter no experience needed
 Sex female
 Salary 350 birr

Barista
 Qualification grade 10 completed
 Special experience operating the boiling machine
 Experience 1 year experience handling the machine
 Sex male

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  Salary 500 birr

Guard
 Grade 5 completed
 At least 1 year experience
 Sex male
 Salary 300 birr
 Grade 8 completed
 0 year experience

Facilitator in intelligence center

 Regardless of education level he must have to be relented
 At least 2 year experience in related work
 Sex male

Risk analysis
Just like any firms MINA recreation and intelligence center also faces major
business risks though it is class member some to clearly state the risk that
the venture might fact analysis of industry and market as well as
observation of ventures characters enable me to forecast the follow of
potential risk to the business.

Low demand
The low demand of customer for ventures service mainly determine the
amount of service sale as well as profitability of the business an adverse
variation in demand means an ultimate decline in ventures ability to provide
customized service if demand of customer is not as forecasted by ventures
official then there will be lost to the venture.

There is a great possibility that some services of the venture such as

business plan development will not be completely demand by my customers.

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Perishable habit of product
As most foods provided in café & restaurant perishable by their nature there
might be the possibility of loss of the demand for product fluctuates.

Failure of supplier
If there is failure in supplier to provide raw material on time there will be
the possibility of customer dissatisfaction ultimately losing the potential
customers to but direct competitor

In efficiency in distribution channel

As the firm depends on external distribution agents to market its service
there will be failure of distribution channel which might result decrease in
sales and large inventory holding if sales volume affected as result of failure
in distribution channel students might develop negative perception that
their products one not demand in local market.

Unwillingness’ to pay for some services

Students might be unwilling to pay for get from venture because of little
motivation of students to be involved on the program for instance students
might not be initialized to pay for discussion for sums to be guest lecture to
be given

Inflation
A continues increase in price might affect ventures sales through Increased
price of raw material forces the firm to increase its price which might be in
contraction with MINA’s rule & regulation.

1. Failure to meet production our production deadlines

If there is the probably that my product is highly demanded in the market

but students is able to produce sufficient goods to fill market gap there will
be huge loss of my customer to competitor.

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 2. Technological development

Advance in technology in production of home material decoration painting

will have direct impact on my ventures productive if advance technology will
help competitors to produce at least case than my venture which use
manual production ultimate resulting in comparatives disadvantage.

FINANCIAL PLAN
Starting capital: as the business plan is diversified in to four integrated
parts I should have state initial capital separately.

For mama’s kitchen…………………………………..105,150birr

For meeting …………………………………………..71000birr

For intelligent room…………………………………..21500birr

For recreational room…………………………………131750birr

Idle cash……………………………………………….20000birr

Amount of row material and their cost

Equipment Amount Unit price Total
Boiling 1 60000 60000
machine
Stove 2 10000 20000
Chairs Café 40 300 1200

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 Meeting hall 100 300 30000
Recreation 15 300 4500
Intelligence 15 300 4500
Tables
Café 10 800 8000
Meeting 2 800 1600
hall
Recreation 1 800 800
Intelligence 10 800 80000
Pool table 2 25000 50000
Kerenbola 1 18000 18000
Jotani 2 1500 3000
Tape 1 3000 3000
Projector 1 25000 25000
Laptop 1 13000 13000
Speaker 1 2000 2000
Refrigerator 1 15000 15000
Grant total 176,900 350,400

CYBER COFFEE recreation and intelligence centre

Balance sheet
For the year ended December 31, 2013

Current asset

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 Cash…………………………………………………………….……………..20,000

Account receivable…………………………………………………………………0

Supplier……………………………………………………….………………45,000

Total current asset………………………………………………………………65,000

Plant asset

Store equipment ……………………………………..…………….....121,000

Less: accumulated depreciation………………………..……………………0

Total plant asset ………………………………………..……………164, 0000

Total asset……………………………………………………………………..350.0000

Liability

Current liability

Account payable …………………………………………………………20,000

Note payable………………………………………….…………………….0

Salaries payable…………………………………..……………………….8000

Total current liability………………………………..……………………28,000

Long term liability…………………………………………………………2000

Total liability……………………………………………………………………………
30,000

Retained earnings……………………………………………….……………..160,000

Total owners equity……………………………………………..……………..160,000

Total liability and owner’s equity……………………………………….350, 000

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CYBER COFFEE recreation and inelegance centre

Statement of cash flow

For the year ended December, 31, 2013

Cash flow from operating activity

Cash received from customer ……………….….……………670,000

Affect cash payment for expense and

Payment to creditors……………………….……………….(75000)

Cash flow from investing activities

Cash payment from acquisition of land ………..…….0

Cash flow from financing activity

Cash received as owners investment …………..…..160,000

Deduct cash withdrawal by owner ………..0

Net cash flow from financing activity………..160,000

Net cash flow on December,31 2015……………….……………..755,000

CYBER COFFEE recreational and intelligence centre

Income statement

For the year ended December, 31, 2013

Received from sales

Sales………………………………………..………………………………..72, 000

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 Less: sales return and allowance………………………………….....12, 000

Sales discount…………………………………………………………….3000

Net sale…………………………………………………………………….705, 0000

Cost of merchandise sold

Merchandise inventory

January 1, 2013………………………………………………………...30, 000

Purchase…………………………………………………………………45, 000

Less: purchase return and allowance…………………………………..2500

Purchase discount……………………………………………………….250

Net purchase…………………………………………………………………41, 250

Add transportation in

Cost of merchandise purchase …………………………………………….1250

Merchandise available for sale………………………………………….70, 0000

Less: merchandise inventory dec, 31, 2013…………….…………..30, 000

Cost of merchandise sale……………………………………………………40, 000

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 Gross profit ………………………………………………………………..665, 000

Operating expense

Selling expense ……………………………………………………………..27,000

Sales salary expense …………………………………………………………73, 000

Advertisement expense………………………………………………………12, 000

Appendix

The total spat of the cyber coffee on recreation and intelligence center of the
resort is 40 by 60.The place has different partitions for each group of rooms.
For the additional as I planned it the coffee resort considers any form of

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challenge when different problems are happen on customers. Finally I
accept any form of written documents from our customers that is dealing
with the price and quality of coffee.

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