MARKETING PLAN

BIRUH TESFA PRIMARY PRIVATE SCHOOL

1. EXECUTIVE SUMMERY

BIRUH TESFA PRIMARY PRIVATE SCHOOL will open in 2008 E.C at K/Keranyo Woreda 07
(W07). Biruh Tesfa primary school is a private school aimed to provide best quality education
service with fair price; it gives more attention on quality education service & to become a bench
mark for the others. The school will align its work with his mission, producing competent students &
ethically well shaped students. The school will work to satisfy the need of the customer education.
(Grade 1-8 by 2008 E.C.)

The school will start registration process by the end of 2007 E.C & serve 840 students. The school
will start by 3,000.000.00 Birr. (capital) for this new school opening. It will have 36 qualified staffs
(degree and diploma) as per the current education office standard & works to satisfy its beneficiary.
Due to its quality and well organized service, passion & commitment the school dropout will not
exceed 2% by 2008 E.C.

The school will expend birr 1,209,600.00 for variable cost and birr.974, 200.00 for fixed cost and
total expense will be birr 2,183,800.00 by the 1st year, and will collect birr. 4,518,150.00 as revenue,
according market study plan the school will become more profited starting its 1st year and will
become fames with the coming 3 years. The school will furnish all the necessary school supplies,
materials, good library and laboratory services.

To give more attention for quality education the school will use fair teacher and student ratio (1:35)
per classes. So that 35 student/class room is our maximum limit. The school will develop a web site
and uses different promotion methods to get more share from the market. Networking will facilitate
with charities organization those who support their student’s education expenses in the area, (like
compassion assisted projects) and KG schools to get more shares from the market.

The school will give the necessary trainings like customer service for his staffs and make self-audit
regularly by asking feedback from its beneficiary, by monthly and quarterly evaluation meetings to
fill any gap observed, closely work with government education office to take additional advantages
and to fill full the government requirements. The school will serve according its core value with
great commitment and it will become more productive by the coming 3 years.

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2. SITUATIONAL ANALYSIS

2.1. Market Summary

Recently in Ethiopia, there has been massive expansion throughout the education system. Primary
school education consists of two cycles from grade 1 -4 and grade 5-8. Secondary schools have two
cycles from grade 9-10 and 11-12. Primary schools have over 90% of 7 year old enrolled although
only about half complete the two cycles particularly in rural areas. The school curriculum in later
years covers more subjects at higher level than curricula in most other countries. The aim of the
curriculum is to link theory with practice in real life & to use a problem solving approach.

However, low pay and undervaluation of teachers contributes to poor quality teaching. There were
no incentives for good work or penalties for poor practice. This is exacerbated by large class sizes
and poor resources, such as poor library facilities, lack of text books and equipment, resulting on
poor performance on national assessments. Consequently, teaching was usually “talk and chalk”
with rote learning. Due to this many teachers lack motivation and 60% would move to another job if
given the opportunity. Moreover, especially in rural areas, not all parents can afford to send their
children to school. Parents may need to pay for clothes, books, transport and school fee. In addition,
there are cultural attitudes against educating girls. Regarding sanitary facilities schools may lack a
water supply and separate toilets for girls and boys.

Government General Education Quality Improvement program (GEQIP), launched in 2009, has been
to upgrade teachers’ qualifications. For instance government requires teachers’ qualification to be
diploma rather than certificate for grade 1-4.

2.1.1. Market Demographics, Trend, and Growth

Demographics: Woreda’s Population growth

Similar to country population growth trend of 2.89% (est.) in 2014, the population growth rate of
K/Keranyo Woreda 07 (W07) is 4% in 2014 as shown in the table below. This is because the area is
new residential place and the majority is young and fertile.

As shown in the table 1.1, the number of babies below one year is near to 2%. However, the total
population growth rate is 4%. The difference of this growth rate is due to migrant to the area for
settlement.

(Table 1) (Data collected from K/Keranyo Woreda 07 educational office)

Percentage Percentage increase

Below Total W07
Woreda 07 increase of of total population in
1yr Population
new born W07
2005 EC 465 16,164
2006 EC 474 1.9% 16,837 4%
2007 EC 484 2.1% 17,539 4%

2
 20000
18000
16000
14000
12000
10000 Below1yr

8000 Total W07 Population

6000
4000
2000
0
2005 EC 2006 EC 2007 EC Total

(Data collected from K/Keranyo Woreda 07 educational office)

Student enrollment
The student attendance to school is one of indicator for advancement of the society. In Ethiopia the
school enrollment rate was increased from 29% in 1995GC to 87% in 2006 GC. However, it is still
below enrollment percentage of Sub-Saharan Africa countries.

In Addis Ababa almost all people send their child to school. That is about 98% of student in the age
of 5-14 enrolled for primary schools. In the Woreda under consideration on average 80% of age
range attended in the schools available in the area. Most of the remaining children go to other distant
areas to attend school for various reasons.

As shown in the table 2 the number of students enrolled and the number of school acceptance
increased in the year 2005 to 2007EC. On the other hand, the number of children in age range under
discussion increased at a greater rate than school acceptance.

(Table 2)

Percentage Percentage Difference

5-14 Yrs old 5-14 Yrs actual
increase increase of
Woreda 07 children in enrolled to
total actual
the area school
children
818
2005 EC 4,295 3,477
12% 10% 972
2006 EC 4,812 3,840
12.5% 12% 1,126
2007 EC 5,417 4,291

(Data collected from K/Keranyo Woreda 07 educational office)

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 6,000

5,000

4,000
5-14 Yrs old children in
3,000 the area
5-14 Yrs actual enrolled
2,000 to school

1,000

0
2005 EC 2006 EC 2007 EC Total

Number of schools

In 2007EC there are nine private and one government owned schools in Woreda 07. The number of
private schools in the area was 5, 6, and 9 in the year 2005Ec, 2006EC and 2007EC respectively.
The total number of school in the area has been increased by rate of 80% from year 2005EC to year
2007EC.

Schools capacity for expansion

The student acceptance capacity of the schools is increased from year to year. However the actual
enrollment number of schools is greater than their plan or capacity. For instance, Victory Academy
planned to accept 590 students for the year 2007EC. But actually it accepted 676 students. This
indicates excess demand for school.

Prospective expansion capacity of most of schools is limited due to various factors.

2.1.2. Market Needs

As indicated above the total number of students of age 5-14 in the area is above the schools
acceptance capacity. Moreover, the number of population increases from year to year.

Some researches indicate that, today, more than ever, there is a constant public outcry for access to
quality educational services. They look for school choice. The starting point for school choice is the
availability of private schooling. School choice is believed to increase the efficiency of educational
services by encouraging competition and sharpening innovations in the sector.

Moreover, as per World Bank report, in Ethiopia positive results have been achieved in universal
primary education although the Millennium Development Goal target may not met. The progress in
critical aspects of human development the country needs considerable investment.

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Thus, all this indicated that there is market gap to be fulfilled by new school openings.

2.2. ENVIRONMENTAL ANALYSIS

The environment may be divided for convenience into three concentric layers: the macro-
environment; the industry or sector, and competitors and markets. The layers and the elements
within them all interact with one another.

Macro-environment

Industry or sector

Competitors & markets

The organization

Each of which has its own particular tools or theories that provide a basis for thinking about it as
indicated in table below.

Environmental element Basis of analysis

PEST
Macro Environment Key drivers of change
Scenarios
Competitors 5 forces
Industry or Sector
Cycle of competition
Strategic group
Competitors and markets Market segments
Critical success factors

For the purpose of this document we will use PEST, Competitors five forces and strategic group for
environmental analysis in the following sections.

i. Macro Environment /PEST analysis/

The Macro-environment may be analyzed into six segments using the PEST framework. PEST
analysis seeks to identify the main factors in the macro-environment which will affect an
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organization’s performance. This helps to assess the context within which an organization it is
operating. It focuses on external factors.

These factors have traditionally been broken down into four segments.
a. Political
b. Economical
c. Socio-cultural
d. Technological

Increasing public concern for the natural environment, corporate social responsibility and
sustainability in recent years has led to the inclusion of second “E” in the mnemonic; standing for
‘Environment’. Equally, when legal matters are now given their own heading (instead of being
included with ‘political’) the mnemonic becomes expanded ‘PESTEL’.

Collectively, the factors identified through PEST analysis represent opportunity and threats which
an organization could face. These are likely to affect the strategy and behavior of the organization,
which, in turn, will affect the organization’s performance. Equally, an organizations ability to
respond more quickly to make opportunities or threats than its rivals can help give that organization
a competitive advantage over rivals.

a. Political factors
Government is responsible for providing a stable framework for economic activity and, in particular,
for maintaining and improving the physical (e.g. transport), social (e.g. education, law enforcement,
equal opportunity), and market infrastructure (e.g. enforceable contracts, policing corruption). Public
policy on competition (i.e. monopoly or free market) and consumer protection is particularly
relevant to business strategy.

Consumer protection policy may be required. Control over markets can arise by firms eliminating
the opposition, either by merging with or taking-over rivals or preventing other firms from entering
the market. When a single firm controls a big enough share of the market it can begin to behave as
monopolist even though its market share is below 100%.

Several firms could behave as monopolists by agreeing with each other not to compete. This could
be done in variety of ways- for example by exchanging information, by setting common prices or by
splitting up the market into geographical areas and operating only within allocated boundaries.

Lastly, an organization should anticipate changes in law and political risks. The political risk in
decision is the risk that political factors will invalidate the strategy and perhaps severely damage the
firm. Examples are wars, political chaos, corruption and nationalization.

Since the school enrollment rate is still below enrollment percentage of Sub-Saharan Africa
countries Ethiopian government is exerting its effort and issued a framework. Within the framework
of the 1994 Education and Training Policy (ETP), the Government of Ethiopia launched the first five
year Education Sector Development Program (ESDP I) in 1997 as part of a twenty-year education
sector plan. Since the inception of ESDP I there has been a dramatic increase especially in primary
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school enrolment. The target set for ESDP I of raising primary enrolment from 3.7 million to 7
million was surpassed with enrolment reaching 8.1 million in 2000/01. This trend continued
throughout the duration of ESDP II (2000/01- 2004/05), III (2005/06-2010/11) and IV (2010/11-
2014/15) with primary school enrolment reaching around 15.8 million in 2009/10.

The government policy encourages quality education and private investors in education sector. The
number of schools increases from year to year especially in Addis Ababa. The government also has
private school quality inspection requirement and policy compliance check periodically. Since it’s
free market there is no obvious competition and price control on private schools.

The political situation of the country is stable. For instance, In August 2012, following the death of
Prime Minister Meles Zenawi who had led the government since 1991, the appointment of his
successor Hailemariam Dessalegn marked a historical moment in the country’s politics. For the first
time in its modern history, Ethiopia undertook a peaceful and constitutional transition of power.
The current ruling party, the Ethiopian People’s Revolutionary Democratic Front (EPRDF) has
governed Ethiopia since 1991. Since taking power, the EPRDF has led an ambitious reform effort to
initiate a transition to a more democratic system of governance and decentralize authority. This has
involved devolving powers and mandates first to regional states, and then to woredas, or district
authorities, and kebeles, or village authorities.
Although the formal Ethiopian state structure has been transformed from a highly centralized system
to a federal and increasingly decentralized one, a number of challenges remain. The national
elections in 2005 and 2010, and the largely uncontested local elections in April 2008, illustrated the
fragility of the democratic transition, the dominance of the EPRDF, and the weakened state of the
opposition. The May 2010 parliamentary elections resulted in a 99.6% victory for the ruling EPRDF
and its allies, reducing the opposition from 174 to only two seats in the 547 member lower house.

b. Economic factors

The economic environment affects firms at national and international level, both in the general level
of economic activity and in particular variables such as exchange rates, interest rates, inflation, gross
domestic product, local economic trends, tax levels, government spending, the business cycle,
characteristic of oversee markets, international capital markets, government policy on
trade/protection, etc.

For instance, interest rates: how much it costs to borrow money affects cash flow. Some businesses
carry a high level of debt. How much customers can afford to spend is also affected as a rises in
interest rates affect people’s mortgage payment. Tax levels: corporation tax affects how much firms
can invest or return to shareholders. Income tax and sales tax (e.g. VAT) affect how much
consumers have to spend, hence demand.

The forecast state of economy will influence the planning process for organizations which operate
within it. In times of boom and increase demand and consumption, the overall planning problem will
be to identify the demand. Conversely, in times of recession, the emphasis will be on cost-
effectiveness, continuing profitability, survival and competition.

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In Ethiopia case, the economy has experienced strong and broad based growth over the past decade,
averaging 10.8% per year in 2003/04 – 2012/13. Expansion of services and agricultural sector
account for most of this growth, while manufacturing sector performance was relatively modest.
Private consumption and public investment explain demand side growth with later assuming an
increasingly important role in recent years. The Ethiopian economic environment will be discussed
using different elements as follows.

Gross Domestic Product (GDP)

The Gross Domestic Product (GDP) in Ethiopia expanded 10.4% in 2013 from the previous year.
GDP annual growth rate in the country averaged 5.19% from 1982 until 2013, reaching an all-time
high of 13.86% in 1987 and record low of -11.14% in 1985. GDP annual Growth rate reported by
National Bank of Ethiopia is indicated below.

(Table 3) Ethiopia GDP annual growth rate

Year 2006 2007 2008 2009 2010 2011 2012 2013 2014
11.80 10.80 11.20 10.80 8.80 12.40 11.20 8.70 10.40
% % % % % % % % % %

Trends – (Local economic trend)

The market for school is expanding in the country in general due to free market policy and unmeet
standard of school enrollments. The labor rate and rent cost of buildings and machine, vehicles etc is
increasing. This indicated increasing economic trend.

When we see our country census data as below, we can understand that, how the students (age 7-12)
enrolment rate will increase from year to year by 2015-2020). This shows that the market demand
will grow by the coming 5 years.

(Table 4)
Projected School Age population Size (thousands) of Addis Ababa City Administration, Medium
Variant: 2008-2037 (Census data) Table A7.7.10

Year Age 7-12 Age 13-14

Total Male Female Total Male Female
2015 257 127 130 86 42 44
2016 271 134 137 84 41 43
2017 289 143 146 84 41 43
2018 309 153 157 85 42 44
2019 332 164 168 86 42 44
2020 358 177 181 87 42 45

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Kolife Keranyo is located at west Addis Ababa region. In Kolfe Keranio –Woreda 7 there is high
population rate of school age children and some of children haven’t got education opportunity with a
short distant area. This people lose their ample time to send their children in to the nearby schools,
paid extra taxi service expenses, and must go to receive their children from school. This condition
brings additional stress on the family. These families will need and eager to get better education
service in a much closed distant area.

(Table 5)

400000

350000
Year
300000
Age 7-12 Total
250000
Age 7-12 Male
200000 Age 7-12 Female
150000 Age 13-14 Total

100000 Age 13-14 Male

Age 13-14 Female
50000

0
1 2 3 4 5 6

Projected School Age population Size (thousands) of Addis Ababa City Administration, Medium
Variant: 2008-2037 (Census data) Table A7.7.10

Inflation
The inflation rate in Ethiopia was recorded at 8.5% in March of 2015. Inflation rate in Ethiopia
averaged 18.49% from 2006 until 2015, reaching an-all time high 64.20% in July 2008 and record
low of -4.10% in September 2009. The inflation rate measures a broad rise or fall in prices that
consumers pay for a standard basket of goods.

Thus, the economic factors are relatively encouraging private investors.

c. Socio- cultural factors

The social cultural environment features long-term social trends and people’s beliefs and attitudes.
Factors of importance for organizational planes are: the rate of growth in national population; change
in age distribution of the population; concentration of population in certain geographical areas;
household and family structure; social structure; changes in the workforce/ employment; and rising
standards living /wealth/.

Demography is the study of human population and population trends. Implications for demographic
change includes: change in patterns of demand; location of demand; recruitment policy; wealth and
tax.
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Ethiopia is the second most populous country in sub-Saharan Africa with population of 94.1 million
and population growth rate of 2.6% in 2013 as per World Bank report. The growth rate is estimated
to increase to 2.89% in 2014. The growth rate is a factor in determining how great a burden would
be imposed on a country by the changing needs of its people for infrastructure (e.g. school, hospitals,
housing, roads), resources (e.g. water, electricity, food) and jobs.

Accordingly, there is high demand for quality education in Ethiopia particularly Addis Ababa. Our
new school focuses on age range of 5 – 14 and parents who could afford payment.

The detail for Kolfe Keranio Woreda 07 is discussed above.

d. Technological factors

Technology developments can affect all aspects of business, not just product and service. The
Growth and Transformation Plan of the Ethiopian Government identifies Information and
Communication Technology development as an essential component in achieving the objectives in
all sectors. The scope of ICT in the GTP context is broad, outlining development of: systems;
regulatory policies; standards and standardization; information services; infrastructure; education,
training and learning; and ICT culture. ICT is, and can be, an enabler in nearly all aspects of
government, service provision, administration, and communication and information dissemination.
The opportunity for adoption of ICT in the development environment will increase across the board
as basic infrastructure continues to improve and relative prices continue to fall.

Our new school has planned to introduce its website and provide technology related courses to
students e.g. computer courses.

ii. Industry or Sector /Competitors five forces analysis/

The competitive environment is structured by five forces: threat of new entrants; substitute products;
the bargaining power of consumers; the bargaining power of suppliers; competitive rivalry. These
forces influence the state of competition in an industry, and collectively determine the profit
potential of the industry as a whole.

In case of private school in Addis Ababa, particularly K/keranyo W07 these forces will analyzed as
follows.

Threat of new entrants

Threat of new entrants could be analyzed from point of scale of economy, product/service
differentiation, capital requirement, knowledge requirement, switching cost, access to distribution
channel, and cost advantage of existing producers (e.g. patent)

The school investment doesn’t require high fixed cost since its possible start at small scale. There is
less course differentiation because of government curriculum to provide specific courses. But other
quality service could be given to students. The knowledge requirement is either diploma or degree
which is similar for all schools. The switching cost of parents from one school to other is low. There

10
is no binding agreement with them. Parents could prefer to keep their children to nearby school due
to accessibility and additional transportation cost to be incurred.

In general, new private investor could easily enter and invest the education sector in Addis Ababa.

Threat of substitute

A substitute product is a good or service produced by another industry which satisfies the same
customer needs. They provide competition but they are not goods or services produced by
competitors in the same industry. For example, video conferencing could be a substitute for business
travel.

As far are our team concerned, we couldn’t find a substitute for private schools in Ethiopia.

Bargaining power of suppliers

BARGAINING POWER is Advantages that occur when suppliers are concentrated, there are too
many buyers, the suppliers goods are of special interest, suppliers are forward integrated, or it’s too
costly to change suppliers. Now the supplier has the power to demand what they want. The school
demand is still unsaturated market, so that it will not affect this new business.

Bargaining power of customers

The idea is that the bargaining power of buyers in an industry affects the competitive environment
for the seller and influences the seller’s ability to achieve profitability. Strong buyers can pressure
sellers to lower prices, improve product quality, and offer more and better services. All of these
things represent costs to the seller. A strong buyer can make an industry more competitive and
decrease profit potential for the seller. On the other hand, a weak buyer, one who is at the mercy of
the seller in terms of quality and price, makes an industry less competitive and increases profit
potential for the seller. The concept of buyer power Porter created has had a lasting effect in market
theory. The community still needs new schools to satisfy the current gap, So that this new business
will still benefited.

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The education industry in Ethiopia is un-saturated business. There is still a high demand of schools
recently. Student registration is still more than their expectation. The bargaining power of customers
as well as other schools is so weak. Still some students go in to far distance to get un-saturated
schools.

iii. Competitors

Competition is the rivalry between companies selling similar products and services with the goal of
achieving revenue, profit, and market-share growth. Companies strive to increase sales volume by
utilizing the 4 components of the marketing mix, also referred to as the 4P's: product, place, promotion,
and place.

In our situation still the current education demands additional schools. Government encourages the
private sector to share this opportunity, So that our business will get enough market shares from the
current market. Strategy group is weak, so that barrier to entry is free.

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2.3. INTERNAL APPRAISAL /Strategic capabilities/

An organization’s ability to survive and prosper depends on its strategic capability; this is defined by
the adequacy & suitability of its resource and competence.

Position audit is the process of analyzing and assessing the organization’s resource and
competences. It is part of planning process that examines the current state of the business entity’s
strategic capability.

Resource audit is a review of all aspects of resources the organization uses. It identifies human,
financial and material resources and how they are deployed. It could be analyzed using 9Ms Model
as follows.

 Machinery - age, condition, utilization rate, value and replacement cost

 Make-up – refers to culture and structure, patents, goodwill, brands
 Management – size, skill, loyalty, career progression, structure
 Management information- ability to generate and disseminate ideas, innovation, information
system.
 Markets- products and customer; specialized or general; regional, national, international
 Materials- Source, suppliers and partnering, waste, new materials, cost, availability, future
provision
 Men and Women- Number, skills, efficiency, industrial relations, adaptability, innovatory
capability, wage costs, labor turnover.
 Methods- how are activities carried out? Outsourcing, quality
 Money- credit and turnover periods, cash surpluses/deficits, short term and long-term finance,
gearing level, debts.

We will have the necessary No. of staffs, qualified & disciplined staffs, enough compound including
for playing, we have enough computer classes, new school furniture’s, library and laboratory
equipment. The laboratory equipment is not found in most schools in the surrounding area. The
school staffs will get training on customer service and will do marketing survey on yearly basis. We
will make close relation with parents by collecting their feedback, parent meeting and understanding
their concern. We will check our progress and audit ourselves regularly. This will lead us for better
and fast improvement pf service. We will consider market research by some time intervals.

2.4. SWOT ALALYSIS /Corporate appraisal/

The SWOT analysis combines the results of environmental analysis and the internal appraisal into
one framework for assessing the firm’s current and future strategic fit, or lack of it, within the
environment. It is an analysis of the organization’s strengths and weakness, and the opportunities
and threats offered by the environment.

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In general, SWOT analysis helps in the development of strategies “that take maximum advantage of
strengths and opportunities while minimizing the negative effects of weaknesses and threats.
The following ideas are collected through interview and from some data’s of different stakeholders.
(ex. Schools, Government education office, teachers and students)

Strengths

Better commitment of teachers’

Availability of Experienced staffs

Having enough customers

Some schools have their own compound

Better education service than government schools

Continues assessment given by using (worksheet, Quarter based grading, quarterly test, and follow
up for home work…)

Good follow up on student’s behavior

Weakness

Poor sanitary service/Poor level dry pit latrine service

Unsatisfactory level of school facilities/Low quality school desk & old black board

Narrow school compound /Ex. for children playing

Students have some burden due to attending some additional subjects those are not approved by
education offices, kids expected to attend tutorial classes, big amount homework will give by the
same days

Less capacity building opportunity teachers

There is big turnover rate of teachers (no formal HR procedures)

Availability of Financial punishment for those who delay monthly fees

They request repeatedly un-plan fees

Opportunities

Given today’s appetite and search for better quality education in Ethiopia, coupled with inadequate
educational budget available for the sector, little attention has been given to see the comparative

14
advantage of demand side financing in education. In the 1960s, 1970s and 1980s, the state-run
education system was criticized for being elitist, rigid and irresponsive. Today, more than ever, there
is a constant public outcry for access to quality educational services both in urban and rural settings.
The starting point for school choice is the availability of private schooling. School choice is believed
to increase the efficiency of educational services by encouraging competition and sharpening
innovations in the sector. On top of that, it will help to strengthen public private partnership to
supplement the limited government capacity to expand educational opportunities and better target
public subsidies to the poor. Many economists also think that school choice will bring about
consumer satisfaction and could be regarded as the best measure of a product’s quality. The 1994
Education and Training Policy of Ethiopia also claim to establish conditions to encourage and
support private investment in education. However, there is a view that its implementation has
problems and little has been achieved in this direction.

Some research showed that the existing private education sector in Addis Ababa emerged in
response to excess demand for quality education. The present trend shows that the demand for
private schooling substantially exceeds supply as a result of which, the number of private schools
and enrollment have been rising rapidly over the last ten years. In 2001/02 the number of privately
owned and managed schools in Addis Ababa accounted for 98, 78, 53, 41, and 67 percent of the total
schools in the city at pre-primary, primary, secondary, technical and vocational and college levels,
respectively, compared to almost nil in 1994. Parents have showed a reasonable degree of
satisfaction in student performance, safety, and discipline and school climate in private schooling. In
spite of this rapid growth, however, there is un-meet demand for private education as evidenced by a
long waiting list for admission, indicating a universal desire of parents for private schooling. The
rating appeared to be number one choice for the majority of parents under the survey. In fact, these
private schools vary with respect to academic quality, resources and pricing, ranging from the
successful ones to those which are likely to survive in business and management terms.
Administratively, most private schools tend to be more flexible and do not suffer from heavy and
excessive bureaucratic administrations like government-led schools do.

It was also found that most private schools operate at a level of quality superior to or better than
government-led schools and seem to be even cost effective in financial terms.
The willingness of parents to pay for a quality education service was found high, but variations in
school attributes, proximity, limited admissions and fees are factors which affect whether or not
parents send their children to private schools. Thus, private school utilization tends to increases with
income level rather than other factors.

15
However, though not serious there is an ideological impediment to the expansion of private schools
from certain interest groups, stemming out of the fear that the state will forget its prime
responsibility. Parents and students also have a fear that if the ethics of a free market is pursued,
school fees may be raised beyond reasonable price and the venture could be turned into exploitative
practices.

Other barriers to private investment in education in Addis Ababa were related to difficulties in
obtaining school land, poor credit opportunities, excessive bureaucratic interferences and delays in
responding to outstanding issues of the sector. In view of the high capital and operating costs
required for effective functioning of the education system, it has been found that access to land and
financial sources are extremely difficult and discouraging for many who wish to invest in the
education sector, particularly at the secondary level. Legal and regulatory mechanisms, as well as the
structure for incentives, were also reported to be less consistent and ad hoc in nature.

Despite the constraints results of the study strongly support the need for an increased involvement of
the private sector in the delivery of educational services. Given the ever increasing appetite for
quality educational services, there is a need for the introduction of an appropriate incentive structure
and effective supervisory mechanisms to enhance the participation of the private sector in education.
The peculiarities specific to the social sector as opposed to the commercial also make it necessary to
design a privatization strategy specific to the education sector in its own context. The problems
observed in the state-run schools by themselves are also factors that may propel the wave for
privatization in education.

Therefore, it is recommended that reforms have to focus on an enabling policy environment to

reduce barriers to entry, provision of incentive structures, the design of a demand driven safety net
programs, and introduction of an effective contract monitoring by removing all unnecessary
bureaucratic bans and restrictive legal and regulatory frameworks with more focus on performance,
monitoring and quality maintenance.

High new enrollment request from community

There is big market size & beyond our limit

There are a lot of children in the area that fit for school age

No. of schools are not adequate in relation to population size

Government gives monitoring and evaluation support

Public attention for private schools/fever

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 Countries improvement in life expectancy (63 in 2012), controlling HIV/AIDS and malaria,
and child mortality gives opportunity.
 Ethiopia's economic activities have shown encouraging results over the last fifteen years. The
Government is committed to achieving economic stability and keeping inflation low.
 The country has stable political environment and encouraging education policy

Threats

 The rapid population growth rate can be seen as threat. Since the country lack capacity to meet
increasing demand for infrastructure and resources such as water and electricity.
 The private sector in Ethiopia has remained small, largely informal, and concentrated in the
service sector. One of the contributing factors to its small size is the fact that, despite some positive
developments in industry and service sectors, Ethiopia has been a difficult place to do business,
ranking 127th out of 185 economies according to Doing Business 2013. Access to finance and land
have been identified as two critical constraints across sectors in Ethiopia according to the 2012 WB
Enterprise Survey especially for small and medium size firms.
However, the Government of Ethiopia (GoE) has embarked on a series of reform programs to
promote private sector development and with help from the Bank, has made some progress toward
creating an enabling environment for private sector development.
 Ethiopia requires improving governance, empowering local authority, and becoming
accountable to its citizens. This is reflected in bureaucratic process which discourage private
investors.

The school gate is located in front of the road & it can be exposed for Car accident

Unable to meet fully the government requirement (Ex. Narrow compound)

Curriculum quality related challenges (KG level not considered by Gov’t)

Some schools are exposed to environmental destruction (Ex. Sound, addiction…..)

In appropriate school compound location Ex, distance

Keys to Success

1. Timely response to customers' requests: We cannot afford to delay our clients for whatever
reason, as this will have a negative bearing on our image and reputation, as well as impacting future
business. Hence we need to be continually communicating with the client, so as to ensure that
products are delivered on time and according to the customer's specifications. This will go a long
way towards instilling a sense of trust in our ability and establishing long-term relationships. We
brought a booth idea which we keep us closer to our customer when they need anything. we will
provide product, schedule demonstration on how to use; how to dispose and most of we will assess
customer inquiries, suggestions other issues to help our product succeed in market.

17
2. Excellence in fulfilling the promise: We intend to produce and provide products of
uncompromised quality to our customers, and excellent service. This is so as to meet their needs and
standards. We acknowledge the fact that the company's success will be based on timely response to
customer orders and hence we intend to set high standards and work procedures.

3. Networking: As the majority of our customers will be charity organizations and KG schools there
is need to effectively network with the various decision-makers and order-makers to ensure a ready
market.

Critical Issues

As we are starting our education service we may face several critical issues.

mer need

Marketing Strategies

Mission: Mission of Biruh Tesfa primary school is to provide best quality education service to the
K/Keranyo Woreda 07 (W07) community with fair price in Addis Ababa city administration and to
become one of the schools known by quality education service & bench mark for the others.

Vision: producing competent students & ethically well shaped students.

Marketing objective: Marketing objective of Biruh Tesfa primary school is to satisfy the need of
the customer of education from grade 1-8 in the year 2017.

Financial objective: The Financial objective of is to provide education service with affordable price
to the community and reach break-even point after a year and generate profit.

Target market: The target market of Biruh Tesfa primary school will be children which are
qualified to grade 1-8 and any community member who seeks primary education in the area where it
is to be established.

It holds an average of 35 students in a class to prevent those who go too far place area schools which
in turn minimizes the transportation cost and other risks. Therefore our main target is to attract
students which travel much kilo meters to get better education in their area with fair price and
minimum travel.

Since the area is new settlement area, parents come from different place looking for fair house rent
and settle in the area. So those newly coming students with their parents need to have better school

18
in their area with a fair price and Biruh Tesfa primary school takes this advantage in a sense being
competitive.

Parent Involvement: We believe that a large portion of student's success involves a joint effort
between student - parent - teacher triad. At our schools opinions of parents count and their
contributions

Extra-Curricular Activities: Our students participate in after school programs including sports,
clubs, tutoring, and enriched curriculum.

Trips: Throughout an academic year, different trips are organized for the students & teachers in
the country.

Dedicated Teachers: At our unique schools, students have different teachers for each subject area.
Teachers will be highly committed. We give more attention for quality of education.

CURRICULUM

Primary education is structured within eight years duration and has two cycles. The first cycle (grade
1-4) focuses on providing basic primary education and the second cycle (grade 5-8) aims at general
primary education.

In grades 1-6, all students study Amharic, English grammar & English Communication, Maths - in
Amharic & Maths - in English, Science - In English & Science - In Amharic, Computer, Music, Art
& Sport and Civics (starts at grade 5).

In grades 7-8, all students are taught English, English Communication, Mathematics, Amharic,
Physics, Chemistry, Biology, Social Studies, PE & H, computer , and Civics.

INDIVIDUAL ATTENTION

Knowing the importance of this issue, we motivate our students through individual attention;
counselling & dairy based follow up.

Positioning
Positioning is a marketing concept that outlines what a business should do to market its product or
service to its customers. In positioning, the marketing department creates an image for the product
based on its intended audience. This is created through the use of promotion, price, place and
product. The more intense a positioning strategy, typically the more effective the marketing strategy
is for a company. A good positioning strategy elevates the marketing efforts and helps a buyer move
from knowledge of a product or service to its purchase.

Biruh Tesfa primary school will planned to promote at K/Keranyo Woreda 07 (W07) community to
announce the opening of this new school at a very close distance. No need of moving far distant to
get school service by expending their precious time & transport time. Kids don’t expect to walk far
19
distance after this. Our school said “we are in front of you.” Our school has very mature, committed,
qualified & disciplined teachers. We serve our customers with a fair price and with quality service.
The school announce about its readiness and capacity through promotion. We distribute promotion
life late, we post banners on the main places, roods and sites. The school has all new equipment,
library service and laboratory service. The school promotes itself by using television window for few
days.

Strategy pyramids

The Strategy Pyramid places strategy at the top, supported by tactics in the middle, and programs at
the base. Strategy means nothing without tactics and programs to make it real.

This illustration shows a basic Strategy Pyramid for marketing plans. The Strategy Pyramid
emphasizes the practical importance of building a solid marketing plan structure. Most marketing
plans are developed from the top-level strategy first.

Strategy, at the top of the pyramid, is a matter of focusing on specific markets, market needs, and
product or service offerings. Tactics follow and set the marketing message and the way it should be
transmitted. Programs, at the base of the pyramid, provide the specifics of implementation. Programs
include specific milestone dates, expense budgets, and projected sales results.

The School annual plan & budget will approved timely, House rent searching, Renting the school
compound & agreement signing will be processed side to side., Cleaning the compound & painting
work, Ordering & Furnishing the office, delivering materials will done, Haring employee on time as
per the JD, Facilitating license issues, Student registration, Promotion work, Teachers prepare

20
annual educational plan, Creating website for better development, Inauguration ceremony,
Arranging a train session for all staffs to train & give orientation on customer service, basic
requirements, main business procedures & staff related issues, Arranging monthly meeting for 1st 3
month and quarterly base meetings to evaluate our service, Collecting comments from parents,
teachers & students, Teaching and learning process started.

Business goals:

• Total annual revenue to exceed Birr 4,518,150.00 in 2008 E.C

• Total class enrollments will be 840 in 2008 E.C

Tactical goals:

• Achieve over 300 Customer testimonials in 2008 E.C

• Hire total of 36.new full-time staff in 2008 E.C and 40 in 3 years.

Strategic goals:

• Maintain greater than 98% customer satisfaction with students completing classes in 2008 E.C

• Keep dropouts under 2% in 2008 E.C

Financial:

Financial Budget: Biruh Tesfa School will use total of Birr. 3,000,000.00 For school opening
and business rung expense by this stage.

Forecast: Table 6 shows the detail and summary revenue level.

Table 6 (Revenue)

21
 Year 1 Year 2 Year 3

Revenue - Registration Revenue - Registration Revenue - Registration

Grade No. Registration No. Registration No. Registration
Total Total Total
students fee students fee students fee

Gr. 1-4 420 715.00 300,300.00 420 800.00 336,000.00 420 850.00 357,000.00
Gr. 5-6 210 835.00 175,350.00 210 900.00 189,000.00 210 950.00 199,500.00
Gr. 7-8 210 1,000.00 210,000.00 210 1,100.00 231,000.00 210 1,200.00 252,000.00
Total 685,650.00 Total 756,000.00 Total 808,500.00
(Total students x fee x 1 ) (Total students x fee x 1 ) (Total students x fee x 1 )
Revenue - Monthly Fee Revenue - Monthly Fee Revenue - Monthly Fee
Grade No. No. No.
Monthly Fee Total Monthly Fee Total Monthly Fee Total
students students students
Gr. 1-4 420 425.00 1,785,000.00 420 475.00 1,995,000.00 420 550.00 2,310,000.00
Gr. 5-6 210 450.00 945,000.00 210 500.00 1,050,000.00 210 575.00 1,207,500.00
Gr. 7-8 210 525.00 1,102,500.00 210 600.00 1,260,000.00 210 675.00 1,417,500.00
Total 3,832,500.00 Total 4,305,000.00 Total 4,935,000.00
(Total students x Reg. fee x 10 Month ) (Total students x Reg. fee x 10 Month ) (Total students x Reg. fee x 10 Month )
Total Income 4,518,150.00 Total Income 5,061,000.00 Total Income 5,743,500.00

Revenue Summary
Type Year 1 Year 2 Year 3

Reistration 685,650.00 756,000.00 808,500.00

Monthly Fee 3,832,500.00 4,305,000.00 4,935,000.00

Total 4,518,150.00 5,061,000.00 5,743,500.00

Break-even Analysis

The breakeven point can be calculated by drawing a graph showing how fixed costs, variable costs,
total costs and total revenue change with the level of output.

Monthly Fixed costs: is Birr. 115.98 Per unit: Variable costs are: Birr. 144.00 Per unit: Total costs
Birr. 259.98 & Total revenue is Birr. 537.88 Per unit.

NB: No. students are constant for the coming 3 years due to the nature of rent compound.

22
 200000

180000

160000

140000

Cost & bRevenue

120000

100000
Out put
No. students
80000
Cost &
60000 Revenue

40000

20000

0
1 2 3 4 5 6 7 8

Out Put (No. students)

Sales break down: Birih Tesfa School will expend Birr, 2,183,800.00 for the 1st year, Birr,
1,543,800.00 for the 2nd year, & Birr, 732,600.00 for the 3rd year, for both viable cost and fixed
costs.

Expense forecast: The detail expenditure stated clearly and yearly base in the annex.

Expense break down: The expense summary included under table 7. The expense main category
classified in to two, namely variable cost and fixed cost.

(Table 7)

23
Linking Sales & Expense to Strategy

The school fixed expenses will decrease after the 1st year initial phase purchase by big amount &
promotion expense will go down, so that, the profit will increase visibly. The school minimizes its
fixed cost after initial phase.

Contribution Margin:

The contribution margin refers Revenue/student-exp./student (Total variable cost), So that the the
contribution margin stated as follows.

Detail Year 1 Year 2 Year 3

Revenue/student 5,378.75 6,025.00 6,837.50
Total variable cost/student 2,599.76 1,837.86 872.14
Contribution Margin: 2,778.99 4,187.14 5,965.36

Controls
Controlling is important for the school progress and success. The school evaluates itself as per the
plan. It uses implementation standards and specific indicators for measurement.

Timelines

Details of:

• The school will opened in Sep, 2008 E.C

• Projected start April 2007 E.C

• Projected completion date: Continues

• Responsible body for over all Mgt. Board of school

24
Controlling - Action Plan (1st Phase)

#. Activity Activity starting months

Month 2007 E.C
Apr, May June Jul, Aug,
2007 2007 2007 2007 2007
1 School annual plan& budget approved by
board
2 Renting the school compound & agreement
signing
3 Cleaning the compound & painting work
4 Ordering & Furnishing the office,
delivering materials on time,
5 Haring employee on time as per the JD.
6 Facilitating license issues

7 Student registration
8 Promotion work
9 Teachers prepare annual educational plan
10 Creating website for better development
11 Inauguration ceremony

Controlling -Action Plan (2nd Phase)

# Activity Activity starting months

. Month 2008 E.C
Sep. Oct. Nov. Dec. Jan,
2008 2008 2008 2008 2008
1 Children registration continued
2 Arranging a train session for all staffs to
train & give orientation on customer
service, basic requirements, main business
procedures & staff related issues
3 Arranging monthly meeting for 1st 3 month
and quarterly base meetings to evaluate our
service
4 Collecting comments from parents, teachers
& students

5 Teaching and learning process started

Phase 3
Since Learning and teaching process is continues cycle. After this two phases completed the school
running usual business as per the school annual plan and school calendar.

25
Implementation mile stones:

1. Timely approval of the School annual plan& budget by board (Apr. 2007 E.C)

2. Renting the school compound & agreement signing (600+ sq. May 2007 E.C)

3. Cleaning the compound & painting work (June 2007 E.C)

4. Ordering & Furnishing the office, delivering materials on time, (May-June 2007 E.C)

5. Haring the necessary employee (36 Quantity & quality) on time as per the JD & plan.

(June - July. 2007 E.C)

6. Facilitating license issues (June 2007 E.C)

7. Student registration (560 students at Aug.2007 --Sep, 2008 E.C)

8. Promotion work (April 2007 –Aug, 2007 E.C)

9. Teachers prepare annual educational plan (Aug, 2007 E.C)

10. Arranging a train session for all staffs to train & give orientation on customer service, basic

requirements, main business procedures & staff related issues …(36 staffs, Sep, 2008 E.C)

11. Creating website for better development (July, 2007 E.C)

12. Arranging monthly & quarterly meeting for performance evaluation

(36 staffs, Sep, 2008 – Jan, 2008, 40 by 2010 E.C)

13. Collecting comments from parents, teachers & students (Jan, 2008 E.C)

14. Teaching and learning process started (Sep, 2008 E.C)

15. Inauguration ceremony (Sep, 2008 E.C)

Major milestones and evaluation table

No. Plan Performance Variance Remarks

1 Registering 840 new students
2 Birr. 3,832,500.00 Will collect from monthly
fee
3 Birr. 685,650.00 Will collect from Reg. fee
4 105 eight grade students will pass to high
school with 70%+ national exam result
5 The school will get 1-3 rank from woreda
quality service evaluation
6 Completing the year by 2% or less rate of
school drop out

26
Marketing Organization

Throughout the year the intention will be to undertake regular evaluation of our service & marketing
programs by comparing with our objectives, so as to ensure that we are in line with our intended
objectives. In summary we intend to undertake the following:

1. Tracking and follow up:

We intend to have the discipline, as an organization, to track results of the business plan and make
sure that we implement.

2. Market segment:

We intend to have the discipline to market segment focused.

3. Saying no:

Though difficult initially we intend to be able to say no to special deals that take us away from the
target focus but in particular those that are unprofitable.

4. Market Survey:

We will do market serve yearly basis to compare our service with other competitors and to adjust our
service in a better way.

5. Profit and loss follows up:

We will do timely profit and loss follows up timely and we use the data to take corrective action. We
use standard financial transaction system for better evaluation and to make self-audit.

Contingency Planning/Risk Assumptions:

The main challenge is teachers turn over. So the school works by focusing on its mission. The school
wills discuses regularly to test the teacher’s motive and to make some adjustment when it is needed.
Urgent vacancy procedure will do if there is turnover.

Teacher’s salary & students’ fee Market survey will do yearly by comparing the nearby schools.
When there is visible gap correction action will take on time.

The school will do self-audit to fill full the current government requirement by annually.

Annual parent meeting will do to discuss with the current issue and to decide next fiscal year
registration & monthly fees by participating the beneficiary.

Networking will do with some charity organization, who will support their students expense and
with the nearby kindergarten schools to increase our market share.

Experience sharing will takes place with model school to get important experience and best practices.

27
 Reference

1. ACCA Paper P3 Business Analysis, 6th edition Sept 2012, published by BPP Learning Media Ltd, London
2. Wikipedia, the free encyclopedia,----------------------
3. www.tradingeconomics.com/Ethiopia/gdp, April 5 2015

4. www.tradingeconomics.com/Ethiopia/inflation-cpi, April 8 2015

5. www.worldbank.org/en/country/ethiopia/overview, April 5, 2015

6. http://data.worldbank.org/country/ethiopia,

7. www.indexmundi.com/ethiopia/population_growth_rate.html

8. Ethiopia United Nations Development Assistance Framework 2012 to 2015, United Nations Country Team
March 2011

9. http://info.moe.gov.et/gendocs/FER.pdf

10. All children in school by 2015; Global Out of School Children Initiative; Study on Situation of Out of
School Children (OOSC) in Ethiopia; Ministry of Education and UNICEF – Ethiopia Country Office; July
2012 Addis Ababa

11. Ethiopia_education_policy_implementation, Ministry of Education, February 2002.

12. http://www.entrepreneurial-insights.com/ 9 Apr, 2015

13. http://valuationacademy.com/ 9 Apr, 2015

14. http://www.differentiateyourbusiness.co.uk/ 9 April 2015

15. https://myaccount.houstonchronicle.com/dssSubscribe.aspx?pid=308 9 April 2015

16. http://smallbusiness.chron.com/ 9 April 2015

17. http://thelawdictionary.org/ 9 April 2015

18. http://www.dummies.com/how-to/content/how-to-create-a-customercentric-social-crm.html 9 April, 2015

19. http://strategiccfo.com/ 9 April 2015

20. http://study.com/ 9 April 2015

21. http://www.mplans.com/ 9 April 2015

22. http://www.investopedia.com/ 9 April 2015

23. http://www.inc.com/ 9 April 2015

24. http://planmagic.com/index.html 9 April 2015

28
Annex:

Kolife Keranio Sub-City Woreda 5 1st Cycle students

Monthly School fee rate/School/Grade
Monthly School fee rate/School/Grade
Name of Schools
1 2 3 4 5 6 7 8
Akaki Kale Hiwot 260 260 260 260 275 275 310 310
Victory Acadamy 520 520 520 520 550 550 600 600
Cruise School 500 500 500 500 530 530 660 660
Average 426.7 426.7 426.7 426.7 451.7 451.7 523.3 523.3

New school
Monthly School fee rate/School/Grade

Biruh Tesfa Schools

1 2 3 4 5 6 7 8

Our school 450 450 450 450 500 500 550 550

Kolife Keranio Sub-City Woreda 5 1st Cycle students

Registration Fee rate/School/Grade
Name of Schools
1 2 3 4 5 6 7 8
Akaki Kale Hiwot 200 200 200 200 200 200 250 250
Victory Acadamy 750 750 750 750 800 800 850 850
Cruise School 1200 1200 1200 1200 1500 1500 1900 1900
Average 716.7 716.7 716.7 716.7 833.3 833.3 1000 1000

New school
Registration Fee rate/School/Grade
Biruh Tesfa Schools
1 2 3 4 5 6 7 8
Our school 500 500 500 500 550 550 600 600

Kolfe Keranyo Educational Buro Teachers Qualification Standard

Accepted Teachers qualification

Grade
Diploma Degree
From 1-4 P P
From 5-6 P P
From 7-8 P

29
 Kolife Keranio Sub-City Woreda 5
1st Cycle students
Maximums & Minimums No. of students/Class

School Name Gradee 1 2 3 4 5 6 7 8

Akaki Kale Hiwot Average 68 87 65 89 69 43 74 36
Victory Accadamy Average 40 38 37 41 38 38 39 33
Cruise School Average 38 38 35 35 36 38 39 40

Biruh Tesfa (Year 1)

Maximums & Minimums No. of students/Class

Grade 1 2 3 4 5 6 7 8 Total
A 35 35 35 35 35 35 35 35 280
Biruh Tesfa School B 35 35 35 35 35 35 35 35 280
Students average size C 35 35 35 35 35 35 35 35 280
Total 105 105 105 105 105 105 105 105 840
420 210 210 840

Biruh Tesfa (Year 2)

Maximums & Minimums No. of students/Class

Grade 1 2 3 4 5 6 7 8 Total
A 35 35 35 35 35 35 35 35 280
Biruh Tesfa School B 35 35 35 35 35 35 35 35 280
Students average size C 35 35 35 35 35 35 35 35 280
Total 105 105 105 105 105 105 105 105 840
420 210 210 840

Biruh Tesfa (Year 3)

Maximums & Minimums No. of students/Class

Grade 1 2 3 4 5 6 7 8 Total
A 35 35 35 35 35 35 35 35 280
Biruh Tesfa School B 35 35 35 35 35 35 35 35 280
Students average size C 35 35 35 35 35 35 35 35 280
Total 105 105 105 105 105 105 105 105 840
420 210 210 840

30
 Kolife Keranio Sub-City Woreda 7
1st Cycle Private School Staffs' Salary Servay

Teachers' Qualification Level Other Admin staffs

School Name Degree Diploma Guard Cleaner
Lowest Highest Lowest Highest Lowest Highest Lowest Highest
Akaki Kale Hiwot 2,342.00 4,580.00 1,625.00 3,757.00 744.00 1,518.00 744.00 1,625.00
Victory Accadamy 1,500.00 4,500.00 1,200.00 3,000.00 650.00 1,000.00 500.00 900.00
Cruise School 3,332.00 3,445.00 2,525.00 2,725.00 1,000.00 1,200.00 850.00 1,000.00
Average 5,612.67 9,471.67 4,266.67 6,977.33 1,898.00 2,706.00 1,598.00 2,441.67

Biruh Tesfa
1st Cycle Private School Staffs' Salary Servay

Teachers' Qualification Level Other Admin staffs

School Name Degree Diploma Guard Cleaner
Lowest Highest Lowest Highest Lowest Highest Lowest Highest
Our School Salry Scale 2,500.00 4,500.00 1,700.00 3,200.00 700.00 1,200.00 700.00 1,200.00

31
 Kolife Keranio Sub-City Woreda 7
1st Cycle Private School
Total No. Subject given/class

School Name Grade 1-4 Grade 5-6 Grade 7-8

Total No. Subject given/class 11 13 11

Subject/Grade 1 to 4 5 to 6 7 to 8
Amharic P P P
English grammer P P P
Engilish Communication P P P
Mathes - in Amharic P P
Mathes - in Engilish P P P
Science - In English P P
Science - In Amharic P P
Computer P P P
Music P P
Art P P
Sport P P P
Physcis P
Chemistry P
Biology P
Civcis P P
Social Study P P
Total 11 13 11

32
 Expense Table 1

Expense Year 1
S.No. Description Unit Qty u/p T/p Variable Cost Fixed cost
1 Compound rent Qty. 12 30,000.00 360,000.00 360,000.00
2 Office furniture Month 1 20,000.00 20,000.00 20,000.00
3 Student Desk (252 x 600.00) Qty. 300 600.00 180,000.00 180,000.00
4 Black board (16 x 100.00) Qty. 24 800.00 19,200.00 19,200.00
5 Stationery Month 11 1,000.00 11,000.00 11,000.00
6 Computers (2) Qty. 30 12,000.00 360,000.00 360,000.00
7 Printers (2) Qty. 2 5,000.00 10,000.00 10,000.00
8 Photo Copy machine Qty. 1 50,000.00 50,000.00 50,000.00
9 License fee month 1 6,000.00 6,000.00 6,000.00
10 Teaching aid expense (10,000.00) Month 1 10,000.00 10,000.00 10,000.00
11 Cost of teachers text (120 x 40.00) Month 120 40.00 4,800.00 4,800.00
12 maintenance/painting Month 2 10,000.00 20,000.00 20,000.00
13 Water, light, telephone fee Month 12 1,000.00 12,000.00 12,000.00
14 Reward Month 2 5,000.00 10,000.00 10,000.00
15 Clubs expense Month 2 5,000.00 10,000.00 10,000.00
16 TV & Dish with accessories 10,000 Qty. 1 10,000.00 10,000.00 10,000.00
17 Salary & Penssion Month 12 56,900.00 682,800.00 682,800.00
18 Liberary books & fixtures Month 1 75,000.00 75,000.00 75,000.00
19 Labortaory equipment Month 1 250,000.00 250,000.00 250,000.00
20 Training expense Month 1 10,000.00 10,000.00 10,000.00
21 Monitering & Evaluation Exp. Month 2 1,000.00 2,000.00 2,000.00
22 Promotion expense Month 1 10,000.00 10,000.00 10,000.00
23 Admin staff - Cloth exp. Month 6 1,000.00 6,000.00 6,000.00
24 Meeting expense Month 1 10,000.00 10,000.00 10,000.00
25 Inauguration expense Month 1 15,000.00 15,000.00 15,000.00
26 Annual Parent meeting expense Month 1 30,000.00 30,000.00 30,000.00
Total 2,183,800.00 1,209,600.00 974,200.00

27 Contigency 816,200.00
Total Capital 3,000,000.00

33
 Expense Table 2

Expense Year 2
S.No. Description Unit Qty u/p T/p Variable Cost Fixed cost
1 Compound rent Qty. 12 35,000.00 420,000.00 420,000.00
2 Office furniture Month 0 - - - -
3 Student Desk (252 x 600.00) Qty. 0 - - - -
4 Black board (16 x 100.00) Qty. 0 - - - -
5 Stationery Month 11 2,000.00 22,000.00 22,000.00
6 Computers Qty. 0 - - - -
7 Printers Qty. 0 - - - -
8 Photo Copy machine Qty. 0 - - - -
9 License fee month 1 7,000.00 7,000.00 7,000.00
10 Teaching aid expense (10,000.00) Month 1 13,000.00 13,000.00 13,000.00
11 Cost of teachers text (120 x 40.00) Month 120 60.00 7,200.00 7,200.00
12 maintenance/painting Month 2 5,000.00 10,000.00 10,000.00
13 Water, light, telephone fee Month 12 1,000.00 12,000.00 12,000.00
14 Reward Month 2 6,000.00 12,000.00 12,000.00
15 Clubs expense Month 2 8,000.00 16,000.00 16,000.00
16 TV & Dish with accessories 10,000 Qty. 0 - - - -
17 Salary & Penssion Month 12 80,800.00 969,600.00 969,600.00
18 Liberary books & fixtures Month 0 - - - -
19 Labortaory equipment Month 0 - - - -
20 Training expense Month 1 13,000.00 13,000.00 13,000.00
21 Monitering & Evaluation Exp. Month 2 2,000.00 4,000.00 4,000.00
22 Promotion expense Month 1 7,000.00 7,000.00 7,000.00
23 Admin staff - Cloth exp. Month 6 1,000.00 6,000.00 6,000.00
24 Meeting expense Month 1 10,000.00 10,000.00 10,000.00
25 Inauguration expense Month 0 - - -
26 Annual Parent meeting expense Month 1 15,000.00 15,000.00 15,000.00
Total 1,543,800.00 1,543,800.00 -

34
 Expense Table 3

Expense Year3
S.No. Description Unit Qty u/p T/p Variable Cost Fixed cost
1 Compound rent Qty. 12 40,000.00 480,000.00 480,000.00
2 Office furniture Month 1 5,000.00 5,000.00 5,000.00
3 Student Desk (252 x 600.00) Qty. 0 - - - -
4 Black board (16 x 100.00) Qty. 2 1,000.00 2,000.00 2,000.00
5 Stationery Month 11 3,000.00 33,000.00 33,000.00
6 Computers Qty. 0 - - - -
7 Printers Qty. 1 5,000.00 5,000.00 5,000.00
8 Photo Copy machine Qty. 0 - - - -
9 License fee month 1 8,000.00 8,000.00 8,000.00
10 Teaching aid expense (10,000.00) Month 1 15,000.00 15,000.00 15,000.00
11 Cost of teachers text (120 x 40.00) Month 120 80.00 9,600.00 9,600.00
12 maintenance/painting Month 2 6,000.00 12,000.00 12,000.00
13 Water, light, telephone fee Month 12 1,500.00 18,000.00 18,000.00
14 Reward Month 2 7,000.00 14,000.00 14,000.00
15 Clubs expense Month 2 9,000.00 18,000.00 18,000.00
16 TV & Dish with accessories 10,000 Qty. 0 - - -
17 Salary & Penssion Month 12 - -
18 Liberary books & fixtures Month 1 50,000.00 50,000.00 50,000.00
19 Labortaory equipment Month 0 - - - -
20 Training expense Month 1 13,000.00 13,000.00 13,000.00
21 Monitering & Evaluation Exp. Month 2 2,000.00 4,000.00 4,000.00
22 Promotion expense Month 1 7,000.00 7,000.00 7,000.00
23 Admin staff - Cloth exp. Month 6 1,500.00 9,000.00 9,000.00
24 Meeting expense Month 1 12,000.00 12,000.00 12,000.00
25 Inauguration expense Month 0 - - -
26 Annual Parent meeting expense Month 1 18,000.00 18,000.00 18,000.00
Total 732,600.00 720,600.00 12,000.00

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Human Resource Table

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