JJC and Co Associates Limited

Inception Report
on
the Development of Feasibility
and Viability Report for JJC
Limited Abuja
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Inception Report on the Development of Feasibility and Viability Report for JJC & CO Limited

Table of Contents

Executive Summary .............................................................................................................................................. 2

1.0 Background ..................................................................................................................................................... 3

1.2 Objective ......................................................................................................................................................... 3

1.3 Scope of Work ................................................................................................................................................ 3

1.4 Expected Deliverables .................................................................................................................................... 5

2.0 Approach and Methodology ........................................................................................................................... 6

3.0 Work Schedule................................................................................................................................................ 8

4.0 Next Line of Action ........................................................................................................................................ 8

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Inception Report on the Development of Feasibility and Viability Report for JJC & CO Limited

Executive Summary
Hadas Stores Limited, as part of its corporate strategic plan to expand and grow its business is
considering the establishment of a departmental store at Kurudu, Federal Capital Territory,
Abuja to enable the company to take advantage of the growing opportunities in the retail and
wholesale segments of the Nigerian economy.

The purpose of this assignment is to develop a bankable feasibility and viability report to help
the Management of Hadas Stores Limited determine the feasibility and viability or otherwise of
the proposed departmental store.

Retail outlets in Nigeria are classified into traditional open market outlets; unit neighbourhood
stores or supermarkets; multi-branch supermarkets/franchises; and mega
supermarkets/shopping malls. While the traditional open market retail outlets constitute over
70 percent of the retail structure of the country, the trend is changing in many cities because the
traditional system is gradually shrinking while other forms of retail, which provides customers
with the opportunity to buy variety of products they want under one roof are expanding. This
new form of retail outlets is what Hadas Stores Limited intends to invest in, if found worthwhile.

This report therefore described theoretical framework planned towards development of a

feasibility and viability report for the proposed Hadas Store Limited to be sited at Kurudu. In
line with the ToR for this assignment, reports are expected to be submitted in four (4) stages;
Inception, Progress I, Progress II and Final Reports.

This stage of report is meant to ensuring mutual understanding of management of Hadas Stores
Limited, consultant's plan of action and timeline for completing the report.

The overall of this assignment is to develop a feasibility and viability report on the proposed
departmental store at Kurudu to assist the management of Hadas Stores Limited to make an
inform business decision on the venture.
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Inception Report on the Development of Feasibility and Viability Report for JJC & CO Limited

1.0 Background
The impact of COVID-19 on businesses across the countries of the world has created a sense
of urgency for coordinated response to mitigate it’s negative effects on revenue generating
power of organisations. During the pandemic, creative entrepreneurs developed diversification
strategies to stay afloat. Following the same reason, Management of Hadas Stores Limited, as
part of its corporate strategic plan to expand and grow its retail outlets is considering the
establishment of a departmental store at Kurudu, Federal Capital Territory, Abuja. Specifically,
the expansion is to enable the company take advantage of the growing opportunities in the retail
and wholesale segments of the supermarket business as traditional open markets and small local
storekeepers are paving ways for a more robust store, which provides customers with the
breadth and depth of products they want under one roof.

Consequently, this assignment is to develop a feasibility and viability report on the proposed
departmental store at Kurudu to assist the management of Hadas Stores Limited to make an
inform business decision on the venture.

1.2 Objective
The objective of this assignment is to develop a bankable feasibility and viability report to help
the Management determine the feasibility and viability or otherwise of the proposed
departmental store.

1.3 Scope of Work

The scope of the assignment as provided in the ToR includes:

i. Carry out a market overview of FCT market, summarising:

• Retail and wholesale market

• Size of market, key players and competition
• Average monthly turnover
• Average manning capacity per outlets
• Demand and supply pattern
• Sales volume drivers/category and margin on turnover

ii. Do an environmental Analysis of Kurudu vis-à-vis the business viability along:

• Human population
• Demographic
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Inception Report on the Development of Feasibility and Viability Report for JJC & CO Limited

• Customer/Consumer segments
• Current buying behaviour of consumers
• Number of like businesses
• Security
• Traffic behaviour
• Accessibility of the location, etc.

iii. Organisation and Operational Requirements of the proposed venture detailing:

• Organisational structure and Management

• Human resource requirements / plan
• Technology/equipment etc.
• Marketing and sales - business model/strategy
• Distributions

iv. Do a risk analysis, explaining;

• Critical risk factors

• Mitigation strategies etc.

v. Preparation of financial projections to include:

• Expected monthly turnover in volume and value based on portfolio of items

• Expected monthly gross profit
• Projected operational costs based on volume projected
• Break - even analysis
• Expected manning capacity over the project period
• Projected capital outlay etc.

vi. Preparation of report showing:

• Summary of Key findings and implications

• Recommendations on the feasibility and viability of the proposed venture.
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Inception Report on the Development of Feasibility and Viability Report for JJC & CO Limited

1.4 Expected Deliverables

• Inception Report; this report will outline the approach and methodology agreed upon the
ToR. This will also include the work plan and time line as agreed in the ToR.
• Progress Report I; This report will highlight the progress in respect to preliminary work down
that will lay a foundation to the final outcome of the work. It will include; Executive Summary,
Market Overview (FCT market), Environmental Analysis of Kurudu vis-à-vis the business
viability and Organisation and Operational Requirements;
• Progress Report II; This report will be different to part 1 in such that it will contain more
advanced technical work that will lay the basis for the success of the business entity. The
contents will contain Risk Analysis, Three (3) Years Financial Projections, Findings and
recommendations;
• Final Report ; This will be a combination of all listed reports summed into one document as
stated in the ToR
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Inception Report on the Development of Feasibility and Viability Report for JJC & CO Limited

2.0 Approach and Methodology

The approach, methodology and work plan for the assignment is as detailed below:
• Planning and Preliminary Stage
➢ Received briefing from Executive Management Office (EMO) on the proposed project
➢ Development of framework for the Feasibility and Viability report
• Desk Review
➢ Carry out a research on supermarket/departmental stores in Nigeria, Abuja and Kurudu
area
➢ Visit major stores (Sahad stores, H-medix, Shoprite and other medium supermarket) for
information gathering
➢ Review of relevant third-party publications and industry specific reports to get an idea
of size of the market, key players and competition
➢ Preparation and Submission of Inception Report
• Survey
➢ Engage in online, supermarket, in-person interview for information gathering
➢ Interact with EMO on cost estimate of the building for the planned departmental store
➢ Carry out physical assessment of proposed project location to gather information about
like businesses, demographic, population, traffic behaviour etc. departmental
➢ Carry out market survey with the developed data gathering framework (locals and
potential competitors)
• Data Analysis
➢ Assessment of feedbacks on market survey conducted to assist in making useful
recommendation on feasibility and viability of the proposed departmental store at
Kurudu
➢ Do a summary of findings from both online and physical survey conducted for input in
the development of feasibility and viability report for the proposed store.
➢ Preparation and Submission of Progress Report 1
• Development, Review and Submission of Report
➢ Review the developed framework for the Feasibility and Viability report for possible
adjustment
➢ Collation of relevant cost estimates to facilitate preparation of financials for the
proposed departmental store
➢ Preparation of the financials (Projected Statement of Financial Position, Income and
Cashflow Statements)
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Inception Report on the Development of Feasibility and Viability Report for JJC & CO Limited

➢ Preparation of Feasibility and Viability report

➢ Preparation of Progress Report II
➢ Review of the report at Unit level
➢ Review of report and input by the EMO
➢ Preparation and Submission of Final Report

Framework for Reporting

The table of content developed to prepare the report is as stated below:
• Executive summary
• Background
• Description of the Business
• Market Consideration – A Preliminary Evaluation
➢ Market Overview (Nigeria market)
➢ Market Overview (FCT market)
➢ Environmental Analysis of Kurudu vis-à-vis the Business Viability
• Products and services
• Business Operations and Organization
• Human resources
• Legal Framework and Environmental Factors
• Examination of Critical Risks and Problems
• Financial Projections
• Evaluation and Conclusion
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Inception Report on the Development of Feasibility and Viability Report for JJC & CO Limited

3.0 Work Schedule

Table 1: Work Schedule indicating project time
Project Implementation Schedule for the Development of Feasibility and Viability Report
Week
S/N Activities 1 2 3 4 5 6 7
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
1.0 Planning and Preliminary Stage
1.1 Received briefing from Executive Management Office
1 (EMO) on the proposed project
1.2 Development of framework for the Feasibility and
Viability report
2.0 Desk Review
2.1 Carry out a research on supermarket/departmental stores
in Nigeria, Abuja and Kurudu area
2.2 Visit major stores (Sahad stores, H-medix, Shoprite and
other medium supermarket) for information gathering
2
2.3 Review of relevant third-party publications and industry
specific reports to get an idea of size of the market, key
players and competition

2.4 Preparation and Submission of Inception Report

3.0 Survey
3.1 Engage in online, supermarket, in-person interview for
information gathering
3.2 Interact with EMO on cost estimate of the building for the
planned departmental store
3 3.3 Carry out physical assessment of proposed project
location to gather information about like businesses,
demographic, population, traffic behaviour etc.
3.4 departmental
Carry out market survey with the developed data
gathering framework (locals and potential competitors)

4.0 Data Analysis

4.1 Assessment of feedbacks on market survey conducted to
assist in making useful recommendation on feasibility and
viability of the proposed departmental store at Kurudu
4
4.2 Do a summary of findings from both online and physical
survey conducted for input in the development of
feasibility and viability report for the proposed store.
4.3 Preparation and Submission of Progress Report 1
5.0 Development, Review and Submission of Report
Review the developed framework for the Feasibility and
5.1
Viability report for possible adjustment
5.2 Collation of relevant cost estimates to facilitate
preparation of financials for the proposed departmental
store
5
5.3 Preparation of the financials (Projected Statement of
Financial Position, Income and Cashflow Statements)
5.4 Preparation of Feasibility and Viability report
Preparation of Progress Report II
5.5 Review of the report at Unit level
5.6 Review of report and input by the EMO
5.7 Preparation and Submission of Final Report

4.0 Next Line of Action

• Desk review
• Survey
• Data analysis
• Development, review and submission of report