ROYAL COLLEGE

Department of Accounting and Finance

PROJECT ANALYSIS & EVALUATION
GROUP ASSIGNMENT

GROUP NAME ID NO
1. MARTA H/MARIYAM…………………………….0698/12
2. HIMANOT DEGENE…..…………………………...0403/12
3. HELINA MNWEYALET……………………….….0861/12

. TO;- MR.HABETAMU.A

Section: C9

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

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 1.1 The company..........................................................................................................................1
1.2 Some financial figure.............................................................................................................1
1.3 Some salient features of the project.......................................................................................1
2. ENVIROMENTAL ANALYSIS.................................................................................................2
2.1 Internal & External environment analysis..............................................................................2
Raw material...............................................................................................................................2
Human Resources..........................................................................................................................2
Supply Analysis...........................................................................................................................2
Competition analysis......................................................................................................................3
3. GENERAL BUSINSS DISCRIPTION........................................................................................3
3.1 Mission, Vision and objective of the business.......................................................................3
Objective.....................................................................................................................................3
3.2 Forms of ownership................................................................................................................4
3.3 Address of the of the proposed headquarters.........................................................................4
3.4 funding requirement...............................................................................................................4
3.5 A brief description of the product...........................................................................................4
3.6 key features of the product.....................................................................................................4
3.7 The advantages of the product...............................................................................................4
3.8 The product range...................................................................................................................5
3.9 licensing...............................................................................................................................5
3.10 Growth potential of the business..........................................................................................5
4. Sales and marketing plan.............................................................................................................5
4.1 Sales plan...............................................................................................................................5
4.2 market segmentation..............................................................................................................5
4.3 Marketing mix strategy..........................................................................................................6
5. OPERATIONAL PLANS............................................................................................................6
5.1 Plant location..........................................................................................................................6
Site Selection...................................................................................................................................6
5.2. plan for material requirement...............................................................................................7
Selection of Machinery...........................................................................................................7
Raw materials.........................................................................................................................7
Inventory management..........................................................................................................7
5.3 Budget for operational plan....................................................................................................8

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6. Organizational plan......................................................................................................................8
6.1 Organizational chart...............................................................................................................8
6.2 Duties and Responsibilities....................................................................................................8
6.3 Human resource planning......................................................................................................9
6.4 Human Resource laws and regulation..................................................................................10
6.5 Budget for organizational plan.............................................................................................10
7. financial plan..............................................................................................................................10
7.1 Breakeven point...................................................................................................................10
7.2 Profit and loss statement....................................................................................................11
7.3 Balance Sheet statement........................................................................................................12
7.4 Cash flow...........................................................................................................................14
7.5 Different ratio.....................................................................................................................14
8. Risk related to the business........................................................................................................15
9. Exit strategy..............................................................................................................................15
9.1 How the organization would be dissolved...........................................................................15
10. APPENDIX..............................................................................................................................15
10.1 The curriculum vitae (CV) of the owners..........................................................................15

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 1 EXECUTIVE SUMMARY
1.1 The company
Our business name is Fresh Food restaurant which sale fast food called datia in Hawassa

specifically in fiker wiha. The fast food restaurant which sales “datia” (ዳጣ) with its unique
elements, consists of a dry and a wet area as well as a dining area and preparation areas. seating
and normal set tables. Our current focus is selling „datias” a market study will determine the
eatables where both the demand and supply are calculated based on studying the common trend
in the market. This feasibility study is going to be for hawassa market and the focus market area
will be“fiker wiha” with a medium business scale. At the onset, the restaurant will have a soft
opening and will be testes on varied menus to determine the final products prior to its grand
opening. Social media networks, for e.g.
Snap chat, Instagram, Twitter and Google etc. are our primary choice for marketing purposes.

1.2 Some financial figure

The startup capital is birr 100,000 and our source of budget is the owner of the business which
contributes 100,000 to the restaurant. if the market demand and supply goes well or if we meet
our expectation and enlarge our business we will look for more finance to increase our
profitability as we mention in our vision we will go to credit association or micro finance
institution to get credit.

1.3 Some salient features of the project

The purpose is to determine the feasibility study of the opening a fast food selling “datia”(ዳጣ)

restaurant, in Hawassa sidamo around “fiker wiha”“datia”(ዳጣ) is a local food extremely popular
in the town, but it hasn't enjoyed the same popularity as other types of local food have in “fiker
wiha” . The study will first look at the project background and project ideas of restaurant
feasibility study, and then follow the four steps to conduct the feasibility study of the proposed
restaurant. Market area, site selection, competition and financial analysis are made through
observational research, surveys and scanning, and results of the analysis are concluded.

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2. ENVIROMENTAL ANALYSIS
2.1 Internal & External environment analysis
Raw material

The term “datia” (ዳጣ) is associated with good quality foods. It is usually of low price because of

the raw material which to produce datia (ዳጣ) is farmed in that region so it can gate the raw
material easily and the labor which to produce this food doesn‟t need skilled person so any
ordinary persons can produce it easily.

Human Resources

Human resources comprises workforce of an organization, business sector, or economy and is the
human capital, on which an industry or business depends heavily to augment its goals, and
missions. The business needed low skill workers cashers on the lines of payment acceptance,
hiring of workers dependent on the production capacity, availability of raw materials, nature of
the products and the overall project. Business expansion would also yield in the future jobs in the
fields of separate packaging, administration and account departments. Table 3 represents the
needed human resources and salary expenses. Public service of Ethiopian guidelines) are
considered when determining the human resources positions and the salary scales (in line with
the business practices).
Supply Analysis

Equally fundamental to the feasibility of the Common Market concept is the ability and
willingness of regional farmers to produce sufficient quantity and quality to meet the demand of
market for local products. Prospective farmer suppliers for the Common Market were identified
and categorized by type. Three general categories were identified:

1) fruit and vegetable growers, 3) meat producers.

2) dairy farmers, and

But we focus on only the first type of market categories. The supply for our product such as
avocados farm is the main and important one this is the building block of the restaurant by
negotiating with the farmer by price the bring the raw material as required with efficiently and
effectively with time manner.

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Competition analysis

Competition analysis seems to be easy but it is because of the mentality towards competition
analysis that makes a lot of unsuccessful businesses. Competition analysis is not just randomly
choosing the restaurants that is located to the proposed restaurant, and have a rough idea of what

the competitors are like, but to carefully choose the direct and indirect competitors, and analyze
all the aspects of the restaurants ranging from exterior appearance to traffic counts.
Direct competition: the food service facilities that are competing directly with a specific menu of
the proposed restaurant
Indirect competition: the food service facilities that are not competing directly with a specific
menu of the proposed restaurant.

3. GENERAL BUSINSS DISCRIPTION

3.1 Mission, Vision and objective of the business
Vision

To be the chosen fast food restaurant in 2025 in Ethiopia

Mission

-To deliver quality fast with minimum price

-To support the farmers by taking row materials from them

Objective

The ultimate objective of a feasibility study is to ensure a project is sustainable, technically

feasible and economically justifiable. This is indispensable to determine whether the project is
worth the investment and its risk factors. This paper addresses these main objectives:
1. Analysis of the current market and assessing future demand and market potential;

2. Detailed description of competition and targeted customers;

3. Projection about capital needs and how these needs would be met, what would be the ROI
(Return on Investment);

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4. Selecting the suitable site and location

3.2 Forms of ownership

There are three forms of ownership these are a single proprietor, partnership and corporation.

Our business is sole proprietorship

3.3 Address of the of the proposed headquarters

The restaurant is located in Hawassa near to fiker wiha

3.4 funding requirement

The source of our finance is contribution by the owner. No debt is there from any financial
institution.

3.5 A brief description of the product

A description of the process flow is necessary to identify the production steps and hence the
needed machinery. The first phase of the production program is assembling and weighing of raw
materials, then mixing the production ingredients.
The factors that will influence the weighing and mixing of the ingredients include friction, cut,
powdered chill and water. During the second phase, the ingredients are mixed and toothed
becomes uniforms. The methodology of mixing the ingredients in the restaurant is known as
continuous mixing methodology. The methodology will require conventional equipment by
spoon. The mixture is put in the dish is the third phase, and with bread it is given to the consumer

this is the final stage of “datia” (ዳጣ).

3.6 key features of the product

- It‟s easy to prepare & serve to customer

- It‟s not costly

- It‟s fresh

-It‟s fast food

3.7 The advantages of the product

Its advantage is provide quality food with low price to customer fresh & healthy

We are providing natural product so it is advantageous than carnivorous products like meat
because it is good for healthy and also cost. The area is recreation and refreshment place and fish

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is easily available but there are people who do not like fish so our product is a substitute for such
kind of customer.

3.8 The product range

The Fresh Food restaurant produces a single product which is data. So we categorize it as a
single product.

3.9 licensing
We are going to be legal tax payer by having a tin number from near to woreda and then we pay
tax every month to small tax payer office.

3.10 Growth potential of the business

The concept of growth potential our pan is to prepare 80 datia in day but by increase the daily
expectation can be increased by extending our capacity like recruiting new workers ,creativity
new branches and taking loans from government to facilitate our business more all these
mentioned concept will help us to increase our sales and then profit.

4. Sales and marketing plan

4.1 Sales plan
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Unit 5000 7300 8300 8600 29200

Selling price 25 25 25 25 Birr 25

Total sales 125000 182500 207500 215000 Birr 737000

4.2 market segmentation

Market research, which includes social and opinion-based research, is the systematic gathering
and interpretation of information about individuals or organizations using statistical and
analytical methods of applied social sciences to gain support in decision-making.
Market study is one of the key factors used in maintaining a competitive edge over competitors,
and is essential towards identifying qualitative techniques such as focus groups, in-depth
interviews, and ethnography, as well as quantitative techniques such as customer surveys, and
analysis of secondary data.

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In this segment, the demand and supply are identified based on the population of hawassa. After
that, the gap is calculated in order to determine the product mix and the production capacity of
the restaurant

4.3 Marketing mix strategy

Our current focus is selling „datias” a market study will determine the eatables where both the
demand and supply are calculated based on studying the common trend in the market. This
feasibility study is going to be for hawassa market and the focus market area will be “fiker wiha”
with a medium business scale.

When we set the price strategy we are used estimation means at a lower price sell for any
customer.
At the onset, the restaurant will have a soft opening and will be testes on varied menus to
determine the final products prior to its grand opening. Promotion stay basically we are used
those Social media networks like Snap chat, Instagram, Twitter and Google etc. But the
wellknown or simply method is word - of - mouse are our primary choice for marketing
purposes.

5. OPERATIONAL PLANS
5.1 Plant location

Site Selection

An integral part of the project initiation plan is the site selection. It determines financial viability,
risk potential and the sustainability of the project. In order to select an appropriate, site a detailed
assessment of the project needs is required when evaluating site options. Many factors affect the
site selection decision making process such as environmental and technical factors. The
restaurant has been designed with the application of industrial planning and engineering aspects,
taking into consideration architectural and engineering criteria suitable for the conditions
prevailing in the federal republic of Ethiopia, in accordance with local and international
standards and regulations.
What criteria should be applied to evaluate a proposed site for a restaurant? Site
selection criteria checklist is as follows,

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  Demographics of the area: age, occupation, religion, nationality, race, family size,
educational level, average income of individuals and families
 Visibility from a major highway

 Accessibility from a major highway

 Number of potential customers passing by the restaurant (potential customers might be

only travelers going through a community, drivers, local workers)
 Distance from potential market

 Desirability of surroundings"

 When looking for the right location for your retail business, you must consider essential
location factors, including: visibility, accessibility, regional exposure, high density,
growth, operational convenience, safety and security, adequate parking.

5.2. plan for material requirement

Selection of Machinery

The machinery is not modernized to mix the ingredient to produce (ዳጣ). The selected machinery
is traditional like spoon and dish.

Raw materials

This are the variable cost which are needed at each production of the meal
Raw materials Unit
Sugar As required
Powdered chill As required
Avocado As required

Inventory management

Inventory management saves our money and allows us to fulfill our customers' needs. In other
words, it enables successful cost control of operations. Knowing what you have, what is in your
warehouse, and how to manage the supply chain properly is the backbone of business

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Plan for Quality control is important for one business entity. If we are providing high quality
products to our customers it will help us to retain & make them loyal. In order to sustain our
business we have to focus on our products quality. And we have to make sure that our products
quality meets customer expectation.

5.3 Budget for operational plan

Our budget for operating process is 737500 to produce 29200 products in the next annual year.

This budget is classified for different section for like for labor and other.

6. Organizational plan
6.1 Organizational chart
Manager
Finance Human Resource Operation Marketing
al manager

accountant Sales Customer

department service

6.2 Duties and Responsibilities

Duties and responsibilities of Finance Manager

 Monitoring cash flow

 Managing and coordinating monthly reporting budgeting and reforecast process. v Daily
reporting
Duties and responsibilities of Human Resource Manager

 Managing restaurant staff

 Providing necessary support system for payroll requirements

 Developing adequate training

Duties and responsibilities of Operational Manager

 Formulating strategy

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  Improving performance

 Ensuring all operations are carried on an appropriate ,cost effective way

 Purchase materials ,plan inventory and warehouse efficiency

6.3 Human resource planning

Human resource is continuous process of systematic planning ahead to achieve optimum use of
organization’s most valuable asset –quality employees. It ensures the best fit between employees
and jobs while avoiding man power shortage or surpluses.
 Identifying current supply of employees

 Determining future work force

 Balancing between labor supply and demand

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Designation No of employee Monthly salary
Chief manager 1 8000
Accountant 1 5000
Cleaner 1 2000

Driver 1 3000

Waiters 2 2500

Total 6 20500

6.4 Human Resource laws and regulation

Laws and regulation at the federal, state and local levels regulate how to conduct staffing title of
1964 civil right act banned most discriminatory hiring practices.

6.5 Budget for organizational plan

Budget for budget is a tool used for planning and controlling our financial resources. It is a
guideline for our future plan of action expressed in financial terms within a set period of time.
Budget accomplishes: - v It helps refine goals
 It provides accurate information to analyze, adjust and evaluate programs and activities

 It aids in decision making

7. financial plan

7.1 Breakeven point

BEQ=FC/SP-VC

BEQ=306,000/25-10

BEQ=20,400

BE revenue = BEQ×SP

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BE revenue= 20,400×25

BE revenue=510,000

7.2 Profit and loss statement

FRESH FOOD RESTAURANT

Income Statement

For The Year Ended May 17 2023

Revenues: 737500

Cost of goods sold 292000

Gross profit 445500

Operating expense

Salary Expense 246000

Rent Expense 60000

Utilities Expense 5000

Total Operating Expense 316000

Earnings before interest and tax 134500

Tax 28890
Net Income 105610

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7.3 Balance Sheet statement

FRESH FOOD RESTAURANT

Statement of Owner’s Equity

For the Year Ended May 17

2023

Owner’s , Capital May 18 0

2023.....................
Initial investment 100,000

Add: Net Income (Net 105,610

Loss) ...........................
Less: 0
Withdrawal .............................................
Net Increase In Capital ............................. 105,610

Owner’s Capital May 17 2024................. 205,610

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.
FRESH FOOD RESTAURANT

Balance Sheet

May 17 2023

Assets:

Current Assets:

Cash 80000

Supplies 500

Total Current asset 80500

Liabilities:

Accounts payable 20000

Total liability 20000

Owners‟ equity

Owner's equity 205610

Total Liabilities and owner's equity 225610

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7.4 Cash flow
Fresh Food Restaurant

Statement of Cash Flows

For the Year ended May 17 2023

Cash Flows from Operating Activities:

Cash collection from customers 0

Cash outflow for (20,000)

expense ..............................................................

Net cash flows from operating 20000

activities ...........................
Cash Flows from Investing Activities:

Cash inflow from 0

investing ............................................................
Cash outflow for 0
investing .............................................................
Net cash flows from investing 0
activities ...........................
Cash Flows from Financing Activities:

Cash inflow from 100,000

financing ...........................................................
Cash outflow from 0
financing .........................................................
Net cash flows from financing 100000
activities ...........................
Cash Balance on May 17 2024 80000

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7.5 Different ratio
Current ratio = Total Current asset/Total Current liability

Current ratio = 80500/20000

Current ratio = 4.025

It implies that the Fresh Food Restaurant has 4.025 in current asset to pay it's curettage liability.

Quick ratio = Total Current asset - Inventory / Total Current liability

Quick ratio = 80500 - 0 / 20,000

Quick ratio = 4.025

As well as the restaurant has 4.025 in quick asset to cover it's liability.

8. Risk related to the business

There are different risks which are related with business such as competitor’s forces and mass of
visitors around fiker wiha because most of our customers are those people who come to visit.

9. Exit strategy
9.1 How the organization would be dissolved
The business entity may be dissolved because of loss, political stability, legal issue and other
factors. If the restaurant is dissolving the liabilities issue are related with the owner.

10. APPENDIX
10.1 The curriculum vitae (CV) of the owners
The owner is the creator also manages the business because she is a profession. Proprietorship
form of business is having single owner which has unlimited liability, controls all decisions, and
receives all profits so we are take this one for our business.

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