HAWASSA UNIVERSITY, BENSA DAYE CAMPUS

DEPARTMENT OF AGRIBUSINESS AND VALUE CHAIN MANAGEMENT

COURSE: ENTREPRENEURSHIP

BUSINESS NAME: BENSA MILK SUPPLY PROCESSING IN DAYE TOWN

PREPARED BY: ID NUMBER

LAMESA BORU...............................................................................1543/13

HELEN TESFAYE............................................................................1325/13

HIWOT AREGA...............................................................................1366/13

MAMO MALE.................................................................................1622/13

LEMI DIRIBA..................................................................................1554/13

SUBMITTED TO DUKAN G.

ADRESS: DAYE,SIDAMA, ETHIOPIA

FEB, 2024
BENSA MILK SUPPLY IN DAYE TOWN
Table of Contents Page no
1. EXECUTIVE SUMMARY.............................................................................................................................5
1.1. KEY SUCCESS.....................................................................................................................................5
1.2 NAME AND ADDRESS OF THE BUSINESS............................................................................................6
1.3. NATURE OF THE COMPANY..............................................................................................................6
1.4. STATEMENT OF FINANCIAL NEED.....................................................................................................6
2 DESCRIPTION OF THE VENTURE................................................................................................................6
2.1 VISION OF THE VENTURE...................................................................................................................6
2.2. COMPANY MISSION STATEMENT.....................................................................................................6
2.3 OBJECTIVE OF THE VENTURE.............................................................................................................7
2.3.1 SHORT TERM OBJECTIVE.............................................................................................................7
2.3.2 LONG TERM OBJECTIVE..............................................................................................................7
2.4 PRODUT AND LOCATION...................................................................................................................8
2.4.1 PRODUT......................................................................................................................................8
2.4.2 LOCATION...................................................................................................................................8
3. MARKET ANALYSIS...............................................................................................................................8
3.1 OVER ALL MARKET.............................................................................................................................8
3.2 SPECIFIC MARKET..............................................................................................................................8
3.3. COMPETITORS ANALYSIS..................................................................................................................9
3.4 MARKET SEGMENTATION..................................................................................................................9
4. PRODUCAATION......................................................................................................................................9
4.1 PRODUCTION PROCESS......................................................................................................................9
4.2 RESOURCE REQUIREMENT.................................................................................................................9
4.3 QUALITY ASSURANCE.......................................................................................................................10
5. ANALYSIS OF COMPETITORS..................................................................................................................10
5.1 COMPETITIVE ADVANTAGE.................................................................................................................11
6. SWOT ANALYSIS.....................................................................................................................................11
6.1 STRENGTH........................................................................................................................................11
6.2 THREAT............................................................................................................................................11
6.3 OPPORTUNITY..................................................................................................................................11
 6.4 WEAKNESS.......................................................................................................................................12
7. ORGANIZATIONAL PLAN........................................................................................................................13
7.1 ORGANIZATIONAL STRUCTURE............................................................................................................13
7.2 FORMS OF OWNERSHIP...................................................................................................................13
8.MARKETING PLAN..................................................................................................................................15
8.1 DEMAND AND SUPPLY ANALYSIS.....................................................................................................15
8.2. PRICING STRATEGY.........................................................................................................................15
8.3. PROMOTION...................................................................................................................................16
8.4 DISTRIBUTION STRATEGY.................................................................................................................16
9. FINANCIAL PLAN....................................................................................................................................17
9.1 FINANCIAL RESOURCES....................................................................................................................17
9.2 FINANCIAL STRATEGY......................................................................................................................17
9.2.1 Operational plan...................................................................................................................18
9.3 ASSESMENT OF RISK AND CONTINGENCY........................................................................................19
9.3.1 RISK...........................................................................................................................................19
9.3.2 CONTINGENCY PLAN.................................................................................................................19
10. APPENDIX............................................................................................................................................20
9.3.1
Risk…………………………………………………………………………………………………………
………………….10

9.3.2 Contingency plan ……………………..

………………………………………………………………………….…11

10. Appendix……………………….……………………………………………..……...11
1. EXECUTIVE SUMMARY
Bensa Milk Supply is a partnership form of business which is established in Arbaminch town in
2016 E.C by five partners. The venture plans to supply milk to Daye town resorts , restaurants
and other individual local customers. In the long run it also plans to send its products to the
market of wolaita sodo & other neighborhood towns.

The business has short-term and long-term objectives. In the short run penetrating the market,
creating linkages and gaining loyal customers will be given greater concern. For the long run
exploiting the market to gain profit, diversifying other dairy products and diversifying the
species of cows to have different quality products will be paid greater attention. The venture
requires a startup capital of Birr300,000 of which 100,000 is financed by our group. The
remaining Birr 200,000 is gained from government and gifts from friends &families. The venture
requires adequate land area which is given by the local administration but we are expected to pay
Birr 2000 annually as lease. On the land building will be constructed for the normal operation of
the company. For the day to day activity Birr 180,000 is required as operating expenses.

The venture consists of business school graduates who have good knowledge of marketing,
economic analysis and allocation skills. The unique characteristic of the venture is that all
partners come from variety ethnic and religious group, which is an important opportunity to
know the unique characteristics of our target customers. It is led by the general manager at the
top that is accountable for the venture partners. Under the general manager all member of the
venture are assigned as to manager of different staff of the business. Other employees are below
the venture members and they perform the normal operational activities of the venture. These
employees include milker, guard, sales man, casher and feeder.

1.1. KEY SUCCESS

 It uses various types of promotional, or inducement mechanism to attract other customers
 Continuous monitoring of our service and expense.
 It is by society for society, Provide affordable product with high quality.
 Satisfying customer interests by providing quality service
 The presence of good market price due to the weakness of competitor in the area.
 There are many customers, because there is no other provider that gives this service.
 It gives service for long hour with good hospitality.
1.2 NAME AND ADDRESS OF THE BUSINESS
The name of the enterprise is Bensa milk supply. Milk supply processing is located in Daye
town. This location is a great opportunity to get different kinds of customer from Daye town
society.

1.3. NATURE OF THE COMPANY

As the name of the business center indicates the initial focuses on providing high quality milk
supply to the people who come to this bensa milk supply processing.

bensa milk supply, providing enterprise is established to overcome the lack of such type of milk
supply center in this area. This business center provides milk supply for the town society.
Basically this business is believed to reduce unemployment peoples by creating job opportunity
for them.

1.4. STATEMENT OF FINANCIAL NEED

bensa milk supply provides enterprise planned to construct and establish a company with capital
of 300,000 birr. The business requires means of acquiring this initial capital by borrowing from
government credit, personal capital, and from relatives and friends.

2 DESCRIPTION OF THE VENTURE

The Bensa milk supply enterprises have special roles for its customers these are serve the
customers of Milk supply by providing quality work. The venture Come up with specialized
service which is not available previously, like with affordable price, good hospitality and long
serving time etc.

2.1 VISION OF THE VENTURE

Vision of Bensa Milk Supply is to be the competitive milk supplier to milk processing
companies like hotels, resorts and individual milk consumers in the town. To solve the shortage
of milk supply as well as to promote our business to different local country by providing a good
quality of milk supply.

2.2. COMPANY MISSION STATEMENT

 Providing qualitative living style to its workers.
  Supplying high quality milk which is good, tasty, healthy and gives strength for bodies
(muscle&bones).
 Using existing resources, and providing the society qualitative service with affordable
price.

2.3 OBJECTIVE OF THE VENTURE

2.3.1 SHORT TERM OBJECTIVE
 To penetrate the market with low profit margin.

 To serve who are the main customers. The venture will offer the best service to
meet customers need.

 To promote the venture

2.3.2 LONG TERM OBJECTIVE

 To gain profit by exploiting the market

 To deliver other dairy products like yoghurt, cheese, butter.

 To diversify the species of cows to have different quality products.

 To include other venture partners and exploit other financial sources to expand the
business.

 To compete both by product quality and by price.

 To create job opportunity for others

 To increase the number of cows and expand the overall structure of the business.

 To create our own brand and make it famous all over the country.

 To own wide milk processing land.

2.4 PRODUT AND LOCATION
2.4.1 PRODUT
bensa Milk Supply will produce milk from both domestic and special variety cows. Since Daye
town has a lot of cattles, we can supply a lot of milk products.

2.4.2 LOCATION
This business is located in Sidama Region, east Sidama Zone, Daye town. The town is found
around 130 kilometers far from Hawassa. This town is chosen as the residence of the business
because of the following reasons.

 Food for the cows (grass and factory products) are available;

 There is high unfulfilled demand for milk and dairy products in the town for ihabitants.

 In Daye there are a lot of resorts and hotels so we need to deliver sufficient milk supply
for customers. and so on….

3. MARKET ANALYSIS

3.1 OVER ALL MARKET

Milk and dairy products are highly demanded. Even though rural part of Ethiopia is self-
sufficient in production and consumption, these products are highly demanded by urban
population of Ethiopia.

3.2 SPECIFIC MARKET

Specifically the opening of bensa Milk processing company creates great opportunity for
mixed farmers who have one or two cows. But this milk processing company needs more
than what is being supplied now. In other way there are many individuals who want to buy
raw milk for their household consumption,hotel consumption regularly. Therefore the market
for milk production in the surrounding of the residence of the business is highly promising.
 3.3. COMPETITORS ANALYSIS
Unless the market is monopolized there is competition with different degrees in any market.
In this case, since the market can swallow the supplies from different individual suppliers,
competition is not the current challenge of the

business. Moreover, the individual suppliers cannot compete even in quality since we are
going to specialize our product in the area.

However, following the businesses profitability condition we expect stiff resistance from new
coming businesses in the area. But this would not also be a threat because we will be
predominant huge competitors of the milk and dairy market then.

3.4 MARKET SEGMENTATION

Actually the business enterprise is not limited to local market or internal market rather than
external market. So our milk supply processing is comfortable to export to other countries.

4. PRODUCAATION
4.1 PRODUCTION PROCESS
The milk production in this phase is not complicated. Even the highly skilled labor is not also
needed. The cows are milked twice a day commonly at the morning and at the night. Then
the morning milked product will be sent to customers at noon while the night milk at every
morning. Food for the cows will be bought weekly and grass will be prepared every semi-
annually. The cows will be feeding three times a day. Independent person who cleans the
house of the cows will be hired. Cleanness and dryness will be protected very carefully.

4.2 RESOURCE REQUIREMENT

As any business bensa Milk Supply also needs physical, financial, human, and technological
resources. Obviously land is needed. Related to government‘s policy to initiate small and
micro businesses land will be facilitated by the local government. We shall build different
houses for living of these cows and residence of the guards. Financially Birr 300,000 is
required as initial capital. individuals with different requirements will be hired. Technology,
for this business, is very important.
 First of all the scientific breading is required. Modern containers and measurement of the
milk are vital for the business.

Medical treatment will be given periodically to protect cows and employees healthy.

4.3 QUALITY ASSURANCE

As has been explained in competitors’ status section quality is not only given unique concern
but also taken as one basic competition mechanism. In our business, quality matters pay more
attention. It starts from the species diversities of the cows. They will be of special quality so
that the yield will be diversified for different customers. Then the milking & marketing
environment and all other workers are expected to be clean. We want to make our customers
happy in our service and assure them specially in quality.

5. ANALYSIS OF COMPETITORS
Milk supply processing business is well known and has good profit in other place. But in our
area there are alot of cattles but not sufficient supply of milk, it is not recognized this much.
Even if there is no known milk supply processing in this area, there are some competitors’ who
competes with us.

Some of our direct competitors are:

 Other milk suppliers in Daye town

 Expansion of powder milk

The strength of our competitors is that they have high initial capital and also have enough man
power. In addition they have enough space for producing large number of milk supply.

Their weakness

 They provide poor quality

 Their service of time is limited

 They do not respect their customers

5.1 COMPETITIVE ADVANTAGE
The competitive advantages of our business are listed in the following manner

 We provide quality milk supply for our customers better than our competitors

 Our business entertain customers who are in different age level

 It address customers need with lower price

 Proximity to suppliers

 Initiated workers

6. SWOT ANALYSIS
6.1 STRENGTH
 The accessibility of infrastructures, high quality and affordable price of the products is
the strength of the business plan. Better management skill is the opportunity of strength.

6.2 THREAT
 The threats of business plan may be fluctuation of price of product due to religious
factors. In fasting season, milk may be cheap.
 Will there be increase in tax and land rent.
 Will be shortage of grass and water due to current weather condition.

6.3 OPPORTUNITY
 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.
 High demand of customer towards milk supply.
6.4 WEAKNESS
 The weakness of the business is shortage of personnel.

 Shortage of capital.
7. ORGANIZATIONAL PLAN

7.1 ORGANIZATIONAL STRUCTURE

Venture holder

1. General Manager………………………….Lamesa Boru

2. Marketing manager……………………... Helen Tesfaye
3. Financial manager……………………….Mamo Male
4. Sale manager……………………………..Lemi Diriba
5. Customer service manager…………….Hiwot Arega

Note: Requirement to hire employee

First degree from known university in management, marketing management and relates field.

Atleast above two year experience by business management, and sale management.

Punctuality is also required.

7.2 FORMS OF OWNERSHIP

bensa milk supply is a partnership form of a business. The business is owned by five partners.
The involvement in decision making is based on the share that the partners have on the venture.
Dividends will be made at the end of the fiscal year of the country in order to be suitable for tax
purpose.

The partners agree the priority to be business expansion than merely short term profits.

NO VENTURE PARTENERS SHARE IN PERCENT

1 LAMESA BORU 20
2 HELEN TESFAYE 20
3 HIWOT AREGA 20
4 MAMO MALE 20
5 LEMI DIRIBA 20
8.MARKETING PLAN
8.1 DEMAND AND SUPPLY ANALYSIS
Most of the time demand and supply do not balance each other. To balance Supply with
demand we must do a continuous assessment on the number of our customer. We must
identify the primary need of our customers. We have to measure the daily, weekly, monthly
and yearly consumptions of the customer and compare with our products. By carrying out
this process we can balance demand and supply.

8.2. PRICING STRATEGY

The venture follows competitive pricing that basically does not fluctuate in the short run. Since
the products are almost identical, price is primarily set by the market. Competition by price is not
taken as the best strategy in this market rather quality will be paid more attention.

The base for our business pricing strategy considers the market price and cost benefit analysis.
Even our competitors have so much strength we can reduce our product price in order to attract
customer attention.

Consequently, we can increase our profit from large number of customer that means concept of
economy of scale. But, generally price of the business may vary from one item to another based
on the quality and it will also vary with in the market conditions. The prices of the product will
be decided based on the analysis of the expense and its profitability.

Milk per liter 24birr

Butter per kilogram 350 birr

Cheese per kilogram 100 birr Promotion strategy

Pricing strategies

Reducing price of our product

Non pricing strategies

Advertising

Notice and radio advertisement

Pamphlets and banner

8.3. PROMOTION
In relation to advertisement and promotion the business uses basically two methods. The first
method is using business cards and flying papers. The second strategy is building and
maintaining the reputation of the business through word of mouth. The market does not need
intensive mass media advertisement as such.

8.4 DISTRIBUTION STRATEGY

The distribution of the Bensa milk supply processing to consumers can be distributed in different
ways. Like: Whole sales, End users, Retail services and direct delivery to consumer’s house.
9. FINANCIAL PLAN
9.1 FINANCIAL RESOURCES
The start-up cost of the venture is Birr 300,000. For activities of the business land is freely given
by the local administration. we are expected to pay Birr 2000 lease per year. In the first year of
the business eight cows Birr 30,000 each will be bought i.e. it totally costs 240,000. Building for
living of the cows and other administrative proposes costs Birr 150,000. Feeding utile for cows
and special reserve rooms for newly born calves are also included in the cost of building. Birr
271,400 will be reserved to other operating expense like wages and salaries in the first year. To
fulfill the above costs the venture, total of Birr 300,000 will be borrowed from Oromiya Credit &
Loan Association and received as gift loan from relatives and friends. The loan will be repaid
within four years and the rest amount of the resource requirements will be contributed by the
venture partners in accordance with some percentage proportion.

9.2 FINANCIAL STRATEGY

The business prepares different type of strategies so as to possess and use its financial resources
properly. The cash generated from the operation of the business should be managed or dispersed
to meet the priory strategies of the venture i.e. expansion and growth and to pay liabilities before
dividends. The business follows holding cash only in required amount for running the business
well.
9.2.1 Operational plan

The inventory management of the business discussed in the following table.

Inventory management Date

Finalize agreement with government March 3 – June 1
Train and hire workers March 1st
Design of the project April 1st
Began the project June 1
Break-even point 8 months and 5 days
9.3 ASSESMENT OF RISK AND CONTINGENCY
9.3.1 RISK
Among the expected risk for our business the following are listed below.

 The shortage of rain that results in shortage of grass which in turn increases the price of
grass;

 Nonexistence of capital for expansion;

 The involvement of other strong investors in the market;

 The management or any other failure in milk Processing Company to whom we supply
our product;

 The acceptability of powder milk might surpass our natural product;

 Lack of adequate information about potential customers.

9.3.2 CONTINGENCY PLAN

 As alternative strategy to protect occurrence of the above risks we should take the
following measures.

 Using appropriate medical treatment like vaccination for our cows;

 Providing quality products to compete and sustain in the market;

 Gathering information about the financial position of our competitors;

 Adjusting our price accordingly by looking the price of related products like powder
milk;

 Searching alternative raw material sources;

 Adapting alternative new technologies;

 To create market linkage with food (for cows)

  To solve the problem of scarcity of the milk.

10. APPENDIX
The total area we provide for milk processing is 3000 care meter. The area is divided in two
small partitions for each different milk processing activity.

The total production area of our business is 3000 square meters including the area of storage
areas.