MARYLAND INTERNATIONAL COLLEGE

SCHOOL OF POST GRADUATE STUDIES

MASTERS OF BUSINESS ADMINSTRAION

Entrepreneurship and enterprise development (Section B)

Prepared by:

NAME ID NO

Samuel Tadele……………… MBA/A046/15

Elesabet Manaye……………… MBA/A020/15

Wasie Sisay…………………… MBA/A057/15

Submitted to: Alazar.A (PhD.)

June,2023

Addis Ababa, Ethiopia

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Table of Contents
Executive Summery...................................................................................................................................3
Chicken Reproduction..............................................................................................................................4
1 Introduction............................................................................................................................................4
1.1 Name and address of the company.....................................................................................................4
Name and address of the co-owner(owners)..........................................................................................4
2. Statement of financial requirement (startup- capital)........................................................................5
2.1Source of capital...................................................................................................................................5
3.Company summery................................................................................................................................5
3.1Mission..................................................................................................................................................5
3.2Back ground of the enterprisers..........................................................................................................5
3.3 Startup summery.................................................................................................................................5
3.4 Type of business...................................................................................................................................5
4. Organizational Structures.....................................................................................................................6
4.1 Roles and responsibility......................................................................................................................6
5. Description of Business.........................................................................................................................7
5.1 Products................................................................................................................................................7
5.2 Customer of the Business....................................................................................................................7
6. Marketing plan......................................................................................................................................7
6.1 location(place) of the Business............................................................................................................7
6.2 Distribution..........................................................................................................................................8
7. Description of the Market.....................................................................................................................8
7.1 Marketing Price...................................................................................................................................8
7.2 Analysis of Competitors......................................................................................................................8
7.3 Strength of Competitors......................................................................................................................9
7.4 Weaknesses of Competitors................................................................................................................9
7.5 Promotion Strategy..............................................................................................................................9
7.6 Market Segmentation..........................................................................................................................9
8. Market Positioning..............................................................................................................................10
9. Legal Form of the Business.................................................................................................................10
10. SWOT Analysis..................................................................................................................................10

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11. Production Plan.................................................................................................................................11
12. Source of Fund...................................................................................................................................12
13. Industry Analysis...............................................................................................................................14
13.1 Future Outlook and Trends............................................................................................................14
14.Operation Cost....................................................................................................................................14
14.1 Office Equipment and Personnel....................................................................................................14
15. Production Plan.................................................................................................................................15
16. Needed Physical Martial...................................................................................................................15
17. Raw Materials and Machinery.........................................................................................................15
18.The Future Capacity..........................................................................................................................15
19.Organizational Plan............................................................................................................................16
19.1 Forms of Ownership........................................................................................................................16
20.Risk Assessment..................................................................................................................................16
20.1 Weakness of the Business................................................................................................................16
20.2 Effects of Change.............................................................................................................................16
20.3 Contingency Plans...........................................................................................................................16
21. Financial Plans...................................................................................................................................16
21.1 Forecasted Profit or Loss and Other Comprehensive Income for the next three years.............16
21.2 Forecasted Statement of Financial Position for the next 3 years..................................................18
21.3 Forecasted cash flow for the next three years................................................................................19
22. Monitoring.........................................................................................................................................19

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Executive Summery
Chicken Production Company shall be established as a private limited company in Fitche town

By a partners Abdeta mamo, Beneberu kasahun, Takel Dirba and merid Fisha and the type of
business is merchandise. The capital required to start the business shall be acquired through bank
loan, families and partner. The starting capital for investment and working capital is 600,000.

The chicken reproduction shall to sale high quality of meat; egg and compost of fertilizer
have a capital of a 9,680,000 Birr with operation cost of 3,396,200. The competitors have no
high quality products strong business network. The primary product of the business will be
chicken meat and egg. The size of the business will be medium at the beginning but certain year
when it gets more profit the size will be large size. The business operation shall require some
personnel and machinery.

The entrepreneurs of the business have rich experience about chicken reproduction in which
will significantly contribute to the success full establishment and operation of the business. The
partner shall carefully monitor and adjust the business products prices and change made on a
weekly, monthly or yearly and use different promotional strategy.

Easy available, convenient o the customer and affordable price makes the store popularity in
that area. The business form is general partnership.

The company distribute the product to all target market to satisfy increase the customers and
the quality of the product through direct and indirect means. The customer of the business is
hotel, restaurant and retailer because this business activity needs egg and chicken meat

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Chicken Reproduction

1 Introduction

1.1 Name and address of the company.

The name of the company named as abroad chicken Reproduction Company. Around fitch town

Legal form: - general partnership

Contact address: Fitch

Tell: 011-112233

Type of business: merchandise

Name and address of the co-owner(owners)

1. Samuel Tadele Birhan

Address------------------------------------------------------------Addis Ababa
Qualification-------------------------------------------------------Degree
Function on the business-----------------------------------------Seller
Experience------------------------------------------------------- Accountant
Tell----------------------------------------------------------0925185418
2. Wasie Sisay
Address------------------------------------------------------------------Fitch
Qualification------------------------------------------------------------Degree
Function on the business-------------------------------------------- Advertising manager

Experience--------------------------------------------------------------Manager
tell----------------------------------------------------------------------------0918414273

3. Elisabeth Manaye
Address------------------------------------------------------------------------Addis Ababa
Qualification------------------------------------------------------------------Degree
Function on the business---------------------------------------------------General manger
Experience----------------------------------------------------------------Accountant
Tell --------------------------------------------------------------------------0930762588
4. Tefera Getnet
Address------------------------------------------------------------------------Muke turi
Qualification-------------------------------------------------------------------Degree

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 Function on the business----------------------------------------------------Purchasing manager

Experience-----------------------------------------------------------------------Manager

Tell------------------------------------------------------------------------------- 09 04906097

2. Statement of financial requirement (startup- capital)

the business will be statement with the saturated with the capital of 900,00 and 700,00-birr use
for investment as land equipment and machines and 200,00 birr used for working capital
employee’s operation cost.

2.1Source of capital
From the total capital of 900,000 the capital of business contributes from (partner, 200,000), and
(bank loan 700,000). From this 22.3 % is equity, 77.7% from debt.

3.Company summery

3.1Mission
The mission of the business plans is producing quality and health chicken meat and eggs and
satisfies the customer’s needs and wants in return getting reasonable profit.

3.2Back ground of the enterprisers

The partners have enough knowledge which helps them to operate the reproduction system
easily. They also have experience on how to mobile and operate the business manly with the
adjustment of their marketing source giver though they can easily identify the competitor and
have the ability to win the market with successful profits and the partners were degree
qualification.

3.3 Startup summery

The business plan started May 2023 G.C and partner will start the operation in September
01,2023 G.C and will create job opportunity to the society.

3.4 Type of business

The type of business is merchandise activity.

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 4. Organizational Structures

General Manager

Sale manager
Secretary

Accountant Purchasing Advertising

manager manager

Price Seller
Marketing
receiver
manager

Price bargainer Inventory ship

4.1 Roles and responsibility

 General Manager: - oversea the general operation of the company and personnel’s
 Sales manager: - oversees the selling activates of merchandiser he can see the proper
destruction of merchandise in each centers hover see the bargaining of prices with
customers.
 Advertising managers: - contacts the advertising process. he cheek whether the
company advertised prosperity with proper method or not
 marketing manager: - rails the marketing plans of the company and searching
information which makes the company power full competitors
 purchasing manager: - supervise how much quantity is returned to purchase, what
price should and unease, what type of merchandise purchase
 secretary: - the one write any document like receipt check to any individual
 Accountant: - the one who prepare financial statement
 Seller: - sells the product of accompany in relation to sale manager

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  price bargainer: - The one pay the price to the order
 Inventory ships: - Ships the product order come from the purchasing manager

5. Description of Business

5.1 Products
The products of our company should be

1. chicken meat
2. chicken eggs
3. usage of chicken for fertileness by compost means

In addition to these the companies produce new chicken heredity and sell anew heredity of
chicken for the society which needs them for another popularly farming or reproduction. The
company has a great of increases their production of chickens in the future, this plan should be
not only the plan for our company but, also for other, since improving the capacity of production
from day to day time by doing each and every actives according to the session effectively is the
first issue for every business office. So, in the future our productions capacity will be impounded
we will able to get potential customers and retailers who sells our products for their own profit

5.2 Customer of the Business

the product of the business is chicken meat, eggs and compost fertilizer and the potential
customer is hotel and restaurant and the other is retailer and whole seller.

6. Marketing plan

6.1 location(place) of the Business

the poultry forming where the chicken breeding (keeping them for the purpose of producing
more of them) and processing takes place in fitche town 112 km far from Addis Ababa there is
also alias in office or place which we use for the exchanges of information among different
organizations or companies about the situations of the market or sharing experience in the system
and method of production. The reason for choosing the location is because of the area is the
center of Ethiopia and easily transport to Addis Ababa, which is high restaurant and hotel in the
area.

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6.2 Distribution
The company distribute the products in the market areas, which is best for profit and better for
themselves. Mainly the company distributes the product to the target market of Addis Ababa also
the company can distribute to other marketing areas depending on the existing situation. The
distribution mechanism will be both direct and indirect channel. The reason is for using direct
channel is eggs are easily broken.

Producer consumer (broken product)

Producer agent whole seller retailer customer (for compost fertilizer

product

7. Description of the Market

7.1 Marketing Price

The pricing strategy is the main consideration of the company. This company uses market
penetrators strategy to introduce its products and to expand itself in different market areas, to
penetrates the market the company must know in what price that the competitor are sold their
products. If this is known marking simply in different on the price of the products create a greet
attention for the company’s product by many customers. The company sells the products even
below its reproduction cost up to the level where market is penetrated and getting awareness by
customers to the market. Generally, the customer may be willing to pay 7 birr per egg and 350
birr for chicken meat for one chicken and lastly may pay 500 for one quintal of compost
fertilizer. Our price is 6 per egg, 350birr of one chicken and 100 for one quintal of compost
fertilizer the reason is that in order to increase customer.

7.2 Analysis of Competitors

Recently the available competitors in Fitch and around that area are high, but the bad thing is
that, there is no much more competitor available in the area local marketing who reproduce the
product in that means way of reproduction system. This leads or intercede these partners to the
group and at the same time to aware the society about the method of production by using skill
man power and system of market strategy to become successful. The available competitors are
not present only fitche. That means there may be a competitor who have a high capacity and
provide qualified products in different itself so, to become the wiener, the company should

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eliminate these traditional reproduction priesthoods and these problems associated with health of
chicken to increase productivity and to produce qualified producers. Otherwise, they may be
high competitors in the market and leads for risk.

7.3 Strength of Competitors

The Strength of our competitor are the way of financing mistakes /problems in our products and
the way of trading a solution or mechanism to serve the problems, there is also strong business
network and high quality of products the competitors know the effect of little mistake on the
market structure. That is a onetime mistake takes long period do of time to change the market
situation, sour competitors effective or storing in the protection or avoidance of mistakes in the
quality products.

7.4 Weaknesses of Competitors

The weaknesses of competitors are high production and transportation costs, which results larger
prices and also their approaches to the customers are dominant weakness.

7.5 Promotion Strategy

It is imaginary to think that without promotion of the product the business will be expanded and
profitable that to attract customer promotion of the company’s product is necessary and primary
issue on the targeted market due to this reason promoting company’s prove by using mining
contras (television, radio and networking system like face book, internet) are necessary or
essential, therefore, promoting the products is one best marketing strategy of our company.

7.6 Market Segmentation

The base of the market segmentation was geographically specially in Addis Ababa because in
this area there are different religious so, use the product any time. The other market segmentation
in fitch is based on behavioral means benefit of the product include compost of fertilizer.
Generally, the market segmentation based on geographical (religious) and behavioral base (user
status, usage rate and benefit). therefore, the market for the company’s products is inside the
country which mainly in 5 specific areas

1. Fitche
2. Muke Turi
3. Sululita

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 4. Addis Ababa
5. Degem

In all these market areas there is large customers of chicken meat and egg but the company
distributes the production highly in muketuri, sululita, degem and Addis Ababa because the
company’s near to Addis Ababa among other marketing areas, so the target market for our
products is Fiche. In addition to both areas all the other market areas are suitable to sale our
products for instance Addis Ababa is needs huge amounts of eggs and checker due to the
presence of high population and capital of Ethiopian. So our company can distribute the product
other marketing area depending on the existing market structure.

8. Market Positioning
On comparative advantage of the business is the way the product is defined by the customer. As
a result of this the business tries to place in the customer mind by biting its competitors through
providing the quality and health products with reasonable prices and improving the brand
uniquely benefit to offer customers. in other word it is said to that positioning the business output
in the customer mind for relatively long period of time.

9. Legal Form of the Business

The legal form of the business will be general partnership because all members have a power to
management activity

10. SWOT Analysis

Strength
The accessibility of infrastructures high production quality and quantity better promotion of the
products is the strength of the business plan. Better management skill is the opportunity of
strength.
Threats
The threats of business plan may be fluctuation of price of product due to religious factor. in
fasting season meat may be cheap.
Opportunity

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The opportunity of our business is increase of the product, demand of the customer, decrease of
the material like wheat and maize. Generally, the major opportunity of the business is facility of
hotel.
Weakness
The weakness of the business is shortage of personnel.

11. Production Plan

Before any things have been started this partner is agreed to solve each and every situation can
fulfill the business in peace full mark up. Then the partner decided the following things by
keeping their formula steps.

1. How much capital needed for chicken reproduction?

2. How man chicken subject to their heredity are needed in tidally to start business?
3. What kind of things must be fulfilled fir reproduction?
4. Which one is that lute must emphasis to improve the capacity and quality of products in
the furred also?

Estimation of startup capital amount

Description Amount
Investment:
Land 300,000
Building 176,500
Equipment 224,500
Total investment 700,000
Work capital
Staff cost 26,000
Egg cost (20,000*7) 140,000
Total working capital 200,000
Total startup capital 900,000

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12. Source of Fund
Fund is crucial core point for business. therefore, our source of fund is equity and debt.

Type Source Interest (15%) Principal amount

Equity capital Partner 0 200,000
Loan 1 Bank loan 15%, 4 year 700,000

Information about funding source

Debt 1: bank loan

Name and address of creditor

Name: -----------------------------commercial bank of Ethiopia

Address-----------------------------: -degem branch

Credit agreement: under discussion

Debt service

As we see before the initial capital distributed from partners, family and bank loan explain
briefly. Payment is made in installment based with interest the amount of the loan was birr
700,000 with 15% interest family and for bank.

Repayment period Y1 Y2 Y3 Y4
2015 2016 2017 2018
Back Installment 175,000 175,000 175,000 175,000
loan Interest(15%) 105,000 78,750 52,500 26,250
Total payment 280,000 253,500 227,500 201,250
Staff cost

Position salary per month

1. General Manager-----------------------15000
2. Seller….……………………………5000
3. Accountant-------------------------------8000
4. Secretary----------------------------------4000

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 5. Price bargainer----------------------------3000
6. Adverting manger -------------------------10000
7. Sale manger---------------------------------10000
8. Price receiver-------------------------------7000
9. Purchase manager-------------------------10000
Total staff cost------------------------------------72,000

Yearly sale plan

Two Incubator produce 20,000 chicken and 11,000 chicken use for meat and 9,000 chicken used
for husbandry

Product Sept Oct Nov Dec. Jan Feb Mar Apr

Chicken Price 900 900
meat Quantity 10,000 10,000
Turn 9,000,000 9,000,000
over
Egg Price per 10 10 10 10 10 10 10 10
egg
No of 8000 8000 8000 8000 8000 8000 8000 8000
chicken
Quantity 120000 120000 120000 120000 120000 120000 120000 120000
Turn 1,200,000 1,200,0 1,200,000 1,200,000 1,200,000 1,200,000 1,200,00 1,200,0
over 00 0 00
Compost Price 100 100 100 100 100 100 100 100
fertilizer
Quantity 2 2 2 quintal 2 quintal 2 2 quintal 2 quintal 2
Quintal quintal Quintal quintal
Turn 200 200 200 200 200 200 200 200
over
Total 10,200,20 1,200,2 1,200,200 1,200,200 10,200,20 1,200,200 1,200,20 1,200,2
turn over 0 00 0 0 00

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Note: as shown in the above table, we provide chicken to the market once in four months and
the sales plan show eight month sales plan, so we consider the four months’ sales in total revenue
report of the company.

13. Industry Analysis

13.1 Future Outlook and Trends

In the last five years the introduction of chicken reproduction is highly known and more
expanded and many peoples are also participating but the method of reproducing them have
many problems. The marketing strategy and many things are done in traditional way and using
them in adequacy knowledge. Due to this the total sales from this reproduction are not much
more enough and qualitative.so, when those partners starts the business, they tries to evaluate
and identify the failures in the past few years and as much as possible change this failure totally
to success by fulfilling the accessory, this is to meal realization way and skill full mind to
become profitable with satisfying the customers after some years ago the business expands the
capacity of reproduction and increasing the numbers of partners with the distribution of products
at everywhere and every time if possible.

Kuku new chicken heredity and eggs cannot be these the company identify which gives more
satisfaction for the customer by comparing the pervious and recent heredity then as fares this is
served the partners are understanding the problem and able to maximize their profit by quieting
problem.

14.Operation Cost

14.1 Office Equipment and Personnel

The company’s operation requires some the equipment and personnel.

required office equipment and machinery.

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No Description Quantity Unit price Total price
1 Guest chair 5 500 2500
2 Medicine material 2 1500 3000
3 Personnel computer 1 15,000 15,000
4 Incubator feeding material 2 100,000 200,000
Total 10 220,500

So our companies require 220,500 birr for office equipment and machinery

15. Production Plan

Before any things have been started this partner is agreed to solve each and every situation can
fulfill the business in peace full mark up. Then the partner decided the following things by
keeping their formula steps.

5. How much capital needed for chicken reproduction?

6. How man chicken subject to their heredity is needed in tidally to start business?
7. What kind of things must be fulfilled fir reproduction?
8. Which one is that we must emphasis to improve the capacity and quality of products in
the furred also?

16. Needed Physical Martial

Popularly forming should consist of the following factices

ჯ chicken shelter which is confer table for them

ჯ slaughtering room in which unwanted chickens and ethics are killed due to their skinless/
disease
ჯ reproduction and feeding rooms
ჯ Incubator which necessary for modem chicken breading

17. Raw Materials and Machinery

The needed raw materials for reproduction of chickens are

 Chicken feed which are different in type, quality and, quantity according to the hardily of
the chickens, like fresh water, wheat, barley, mailer

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18.The Future Capacity
In the future the company needs huge amount of capital which is necessary to expand its branch
in different regions and areas with a high emphasis of increasing the needed man power also the
busier must have modern equipment’s for reproducing checkers.

19.Organizational Plan

19.1 Forms of Ownership

Kuku chicken reproduction company should established or termed as private limited company.
(terms of partnership). The partners of the company also as mentioned be for are Samuel Tadele,
Wasie Sisay, Elesabet Manaye and Tefera Getnet We have an agreement on the ongoing
production life and plan of the business. These agreements are try to carry out different and
difficulties facing in the reduction of checkers in peace full way by discusser clearly to become
successfully.

20.Risk Assessment

20.1 Weakness of the Business

In the operation of the business the following problem may occur

- low occupation power to economic change

- shortage of personnel
- competitor’s reaction

20.2 Effects of Change

Completion: -increasing the numbers of competitors to different market area particular in the
stargazed man Nat areas difficulties for our company.

20.3 Contingency Plans

The company shall have the following alternative rule policies to expand the operation profitable

1. establishing /conducting research and development

2. expanding the distribute center to other markets
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21. Financial Plans

21.1 Forecasted Profit or Loss and Other Comprehensive Income for the next three years
Kuku chicken reproduction P.L.C for casted income statements for the following three years

Kuku Chicken Reproduction Company

Forecasted statement of profit or loss and other comprehensive income

For the next 3 years

Description Year 1 Year 2 Year 3

Revenue:
Sale 41,402,400 37,520,925 42,696,225
Total revenue 41,402,400 37,520,925 42,,696,225
Expense:
Office supplies 15,000 20,000 25,000
Transport expense 17,000 18,000 18,000
Rent expense 18,000 18,000 18,000
Miscellaneous 10,000 11,000 11,000
expense
Salary expense 864,000 864,000 864,000

Food expense 800,000 850,000 850,000

Income be for tax 39,678,400 35,739,925 40,910,225

Income tax (15%) (5,951,760) (5,360,989) (6,136,534)
Income after tax 33,726,640 30,378,936 40,910,225

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21.2 Forecasted Statement of Financial Position for the next 3 years
Chicken Reproduction Company forecasted balance sheet for the next three years

Kuku Chicken Reproduction Company

Forecasted Statement of financial position

For the next 3 years

Current asset Year 1 Year 2 Year 3

Cash 9,000,000 8,500,000 10,000,000

A/R 50,000 70,000 80,000

Inventory 210,000 317,000 400,000
Total current asset 9,260,000 8,887,000 10,480,00
Fixed asset
Land 300,000 250,000 200,000
Building (net) 175,500 200,000 100,000
Equipment(net) 224,500 220,000 200,000
Total fixed assets 700000 670,000 500,000
Total asset 9,960,000 9,557,000 10,980,000

Liability and equity:

Loans 175,000 175,000 175,000
Tax payable 105,000 78,750 62,500
Equity 9,680,000 9,303,250 10,742,500
Total liability and 9,960,000 9,557,000 10,980,000

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equity

21.3 Forecasted cash flow for the next three years

Kuku Chicken Reproduction Company

Statement of forecasted cash flow

For the next three years

Y1 Y2 Y3
Cash beginning of the year 300,000 350,000 445,000
Loans 175,000 175,000 175,000
Sales 41,402,400 37,520,925 42,696,225
Total cash inflow 41,877,400 38,045,925 43,316,225
Investment 700,000 750,000 800,000
Operation cost 223,000 230,000 230,000
Interest (15%) 105,000 78,750 52,500
Total cash out flow ( 1,028,000 ) ( 1,058,750) ( 1,082,500)
Cash of the end of the years =40,849,400 =36,987,175 =42,233,725

22. Monitoring
The owners of the business have the right to control, distribute and improve the quality and
capacity of their production. The owner of the company also has the right to operate the business
and terminate of the partner when needed.

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