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BUSINESS PLAN FOR SAMUKUTE & SONS

COMPANY NAME Samukute & Sons

Address:

9 Atlanta, Ivene

Gweru

Cell number: +263776318497

Email: esamukute @yahoo.com

KEY EXECUTIVES

Chief Executive Officer

Batanai Hostel

Senga

Managing Director

Cleopatra Chitiyo

100 Nehosho

Nehosho

0777598042

Finance Director

Ngonidzashe Mwaturura

St Columbus High School

P O BOX 50

Hauna

0777681771

Marketing director

Sibuziso Lunga

27 Samuel Mazorodze rd

Athlone

0773541789

Date Issued 24 October 2012

Prepared by group 18

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BUSINESS SELECTION PROCESS OR METHODOLOGY OF BUSINESS

SESELECTION

Need identification

We need to identify the business in which we are going to develop a business plan.

Criteria for business selection

Location – the business that a plan is going to be developed should be located in Gweru.

This led us to eliminate all businesses which were located outside Gweru. We also

eliminated all businesses that are located in the CBD as this has high probability of failure

as a result of cut-throat competition from well established firms such as DCK, OK, TM

among others.

Type of business- we chosen a retail business since it provide basic needs that are likely to

have unlimited demand and thus the sector which many businesses have high risk of failure

if they venture into because of stiff competition. It is also the fastest growing sector or

industry in the economy which is of great essence to the nation if they grow.

Target market- this sector had a wide target base since all people consume basic needs

hence concentrating to such a sector could bring a tangible plan. Service markets need a lot

of expert to which our focus is limited to.

Fund requirement-this sector can be grown by increasing the capital base which therefore

is the key to success of any business and also demand a small capital base which is practical

and reasonable to be offered to an individual. All businesses which need to be financed with

a lot of funds to grow will be excluded.

Legal environment- this sector is mostly legalized by the Companies Act and many fiscal

terms in Zimbabwe unlike the mining sector and other sectors which include the

manufacturing and IT business. All businesses pertaining to mining sector had to be

eliminated

Data collection.

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All businesses that have been researched were brought to evaluation in accordance to the

above criteria to come up with the one to which the business plan should be developed and

or presented .

Evaluation process

The evaluation was based on the need of the plan and the way that was used to eliminate

other possible businesses visited

Selection

Finally Samukute and Sons was selected to be the one in which the business plan is going

to be developed and be presented.

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CONTENTS PAGE

CONTENTS

Executive Summary

Business description

Business environment analysis (PEST)

Market Plan

Human Resources Plan

Financial Plan

SWOT Analysis

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EXECUTIVE SUMMARY

Samukute & Son retail shop is located in Ivene. It provides grocery to purely meet the

increasing demand, needs and desires of students and staff members at Midlands State

University who are residing in Ivene and all around residents of Senga, Nehosho and Kopje.

This plan seeks to develop strategies aiming to improve the condition of the business so as

to make it grow. This can be done through loan acquisition, recruitment of skilled workers

and developing the trading system. The amount that is needed to better develop the business

can approximately amount to US$20000. The strategies that can be used could be in form of

advertising, penetration pricing, and venturing into different locations to capture the needs

of people as well as offer of standardized products that have already certified (SAZ)

Standardization association of Zimbabwe. It is aimed at providing the best merchandise to

the community in Ivene and nearby areas at a cost they can afford and in such a way that

they are not, socially economically, politically isolated. Samukute’s goal is to provide the

students and members of staff with a wide range variety of merchandise. A Human

Resource plan show how the retailer’s functional structure arranged according to functions

with the as the head. Qualities and duties are also stated. There is also a financial breakdown

of the usage of cash. A swot analysis is carried out to determine the strength, weaknesses,

opportunities and challenges which may affect Samukute & Son retail shop.

BUSINESS DESCRIPTION

Samukute & Son is a retail shop which is currently operating in Ivene providing the

residents with grocery goods especially convenient goods. The company was formed in

2011. The retail shop should venture into other markets like Senga and Nehosho.

VISION

To grow the business into a large retail shop by 2018.

MISSION

To diversify into soft merchandise and provide superior products in a socially responsible

manner.

OBJECTIVES

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Honesty and Integrity

Professionalism

Competent Staff

Commitment to quality

Stakeholder’s involvement

Survival.

Increase market share.

GOALS

To provide high quality goods to customers

To increase sales by 10% monthly.

To increase profit by 6% of sales.

To increase the market size by locating in nearby and surrounding areas.

COMPANY CORE VALUES

Fairness and equity.

Put customers ahead of everything as is the purpose of the business.

Mutual trust and respect

Integrity and honest.

Affordability.

Flexibility.

Adaptability.

COMPANY MOTTO

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Provision of best quality at affordable prices

CHAPTER 1

Mr Samukute started a grocery tuck-shop business in 2003 as an unregistered trader. He

then registered his business in 2005 with Gweru City Council and employed two people of

which one of them was Rudo Jokwiro who was employed as a till operator. He then

converted his sole proprietorship business into a partnership by allowing his two son,

Lincoln and Forget allowing them to buy the interests which amount to 2/5.

BUSINESS ENVIRONMENT ANALYSIS.

This includes an analysis of the: Political, Economic, Social, Technological, Legislative and

Environmental changes taking place. The analysis outlooks as to whether these will be

opportunities or threats to the business.

Political Changes.

The Zimbabwean Government has set up a number of small business support initiatives

through the Department of Trade and Industry; these include: Small Enterprise

Development Agency and the National Youth Development .These are aimed at promoting

small, micro and medium businesses. The agencies will be an opportunity for the business

as it will have access to support in terms of assistance with the development of a

comprehensive marketing strategy and plan, financial and accounting systems, branding and

so forth. Policies and initiatives aimed at growth, empowerment, procurement and other

factors. Key opportunities will include: Broad Based Black Economic Empowerment. This

is essentially a policy that focuses on growth and helping Zimbabwe realise its full

economic potential while taking into account employment equity, it will be an opportunity

for the business.

Economic Changes

There are a number of economic changes taking place in Zimbabwe. The economic

slowdown has had an adverse effect on the economy of Zimbabwe’s evident from the

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declines in manufacturing, mining, agricultural and other sectors. The resulting

unemployment has resulted in reduced numbers of people with buying potential and hence

an adverse impact on existing and potential businesses. The recession has led to the

tightening of budgets by public and private institutions. Individuals have also been noted to

not easily part away with their hard earned money. On a positive note, this year has seen the

fall of interest rates and this is sure to be opportunity for the business as its conception and

realisation will depend on borrowed funds. Borrowed funds attract interest as a cost and

therefore if the interest rates are low then the cost of borrowed funds is less. Inflation is at

an average of about 3.7%, rising prices continue to have a negative effect on the economy.

However, this is likely to increase as there is potential for ZESA to increase the electricity

prices by 45% thus posing threat to the business.

Social Changes

Zimbabwe has a relatively low crime rate and this is likely to be an opportunity for the

business as the business does not waste resources in terms of security. The current socials

ills in the country and indeed the rest of the world may also pose threaten the life cycle of

employees in the business. This includes social ills such as Aids/ HIV pandemic and the

surfacing incidence of the Swine flu. On a positive note the looks into the development of

more social enters and a majority of these are to be integrated with Information Technology

advancements. The growing population coupled with the growth in double income families

will be an opportunity for the business.

Technological Changes

Technological changes taking place will be inopportunity to the business as it will have

access to the latest technology like e-retailing, networking platforms, devices and much

more. The business will open to internet marketing and e-commerce opportunities which

will expand the market for it.

Legislative Changes

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The business will have to comply with the laws of the Republic of Zimbabwe there is a

threat of the business not being fully able to comply with laws and regulations. The business

will have to observe the following acts amongst others: Income Tax Act Occupational

Health and Safety Act Employment Equity Act.

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CHAPTER 2

HOW DO THE BUSINESS GET TO GROW AND SUCCESS?

MARKETING PLAN

TARGET MARKET

Samukute and Sons retail shop is set to target the students, staff and other customers

Midlands State University. This business should be located in strategic areas such Senga and

Nehosho where the students can easily access to buy products at a less cost. This is for the

reason that a lot of students at the university reside off-campus and therefore they would

obviously need groceries hence the reason why they will buy from the retail and also they is

need to reduce transport cost to purchase goods from town.

COMPETITORS

These include MSU TUCKSHOPS and Senga Shopping Centre.

Pricing Strategy

Penetration

It is charging low prices in order to attract more students and the members of the staff. As

this is a new Internet resource centre for students and staff, charging less will definitely

attract many people. The more the students who come in the more the money the resource

centre gets. profits can also be made from this as many students will be expected to come

and utilise the internet café be cause of the less fees being charged.

List Pricing

This is the recommended prices .thus might not be an advantage as a small number of

people might come at the opening.

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CHAPTER 3

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CHAPTER 4

HUMAN RESOURCE PLAN

Organogram

An organized structure is a diagram shown above which shows how Samukute retailers

should organize its activities in order to create value, it ensures value creation by assigning

people to task and connect the activities of different employees and functional areas in an

organization. The structure is mainly because the organization is concentrating on a few

related products and the departments are arranged according to the functions with the

managing director at the top.

Managing

Marketing officer Merchandising manager

nager

Till operator

Till operator

Till operator

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Sales personnel

Position duties Qualifications

Managing

director.

He will be in touch with all

operations and will be able

to make some strategic

decisions.

Should be someone who have an

honors degree in business

management..

Marketing

officer.

He/she will be responsible

for all the marketing

strategies.

Should be someone with a degree

or higher national diploma in

marketing management.

Merchandise

manager.

He/she will be responsible

for sourcing merchandise

from suppliers.

He/she should have a degree in

retail management.

Sales personnel He/she will be helping

clients in the shop.

Till operator A certificate in short computer

course

Till operator A certificate in short computer

course.

Till operator A certificate in short computer source

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CHAPTER 5

FINANCIAL PLAN

NB: Our prices are in USD

Cash in hand – $15 000.00

Table 1

Inputs/raw materials

Item quantity Estimated price

Inventory $ 12 800.00

Tills 4 $ 1 450.00

Total $

Table 2

salaries per month

managing director $ 550.00

Marketing officer $ 300.00

Merchandising manager $ 300.00

Sales personnel $ 250.00

Shop assistant $ 200.00

Cashier $ 200.00

Total $1 900.00

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Table 3

Miscellaneous per month

Cost

Rentals $ 1500

Water $ 150

Electricity $ 200

Telephone bill $ 150

Total $ 2000.00

SWOT ANALYSIS

Strength, weakness, opportunity, threats

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STRENGTH

- The passion and commitment demonstrated by the business owner.

- The strong thriving entrepreneurial spirit of the business owner

- The charismatic and democratic style of leadership of the business owners shall be a

strength to the business

Weakness

- The lack of funding to purchase additional equipment to reach new markets.

- The lack of capacity to meet a wider market

- in appropriate organisational structure

Opportunities

- The existence of government legislation in favour of preferential procurement for

small businesses.

- expecting many clients to come in

Challenges

- Stiff competition from well-established retail shops for example OK,DCK

- Threat of possible high inflation rates as a result of increased electricity prices

- slow speed technological transfer

Human resource strategies

-on the job training

-off the job training

-induction training

-employee motivation

Growth Strategies

-franchising

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-mergers

-joint ventures

MIDLANDS STATE UNIVERSITY

FACULTY OF COMMERCE

Entrepreneurship: ENT 205

Surname Name Programme

Contribution

Jokwiro Rudo HACC Parallel female R113819M 5.5%

Pikela Forget HMAN Conventional male R115020V 5.5%

Shumba Joyline HMAN Parallel female R115503G 5.3%

Rukweza Nyarai HMRK Parallel female R114677R 5.2%

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Muguwu Lincoln HACC Parallel male R113379N 5.4%

Kunodziya Mutsawashe HMAN Parallel female R115414Q 5.2%

Moyo Cornelia HMAN Parallel female R114557G 5%

Mashandika Ardewt HACC Conventional male R112343F 5.5%

Runyanga Felistus HECON Conventional female R115060C 5,4%

Chitiyo Cleopatra HMAN Conventional female R113860F 5.5%

Chinguwa Shingirai HIRM Parallel female R113900N 5%

Mhizha Tafadzwa HMRK Conventional female R111029N 5.2%

Jaji Luckson HRET Parallel male R114243G 5.4%

Mwaturura Ngonidzashe HACC Conventional male R115356V 5.3%

Zvobgo Valentine LLB Conventional female R113510R 5.4%

Tuhwe Tinashe HIRM Parallel male R114496Q 5.4

Lunga Zibusiso HMRK Parallel male R115258Q 5%

Attendance register Dates

27/09/2012 29/09/12 2/10/2012

Jokwiro Rudo HACC present present present

Pikela Forget HMAN present present present

Shumba Joyline HMAN absent present present

Rukweza Nyarai HMRK present present present

Muguwu Lincoln HACC present present present

Kunodziya Mutsawashe HMAN present absent absent

Moyo Cornelia HMAN absent present absent

Mashandika Ardewt HACC present present present

Runyanga Felistus HECON present present present

Chitiyo Cleopatra HMAN present present present

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Chinguwa Shingirai HIRM present present present

Mhizha Tafadzwa HMRK present present absent

Jaji Luckson HRET present present present

Mwaturura Ngonidzashe HACC present present present

Zvobgo Valentine LLB present present present

Tuhwe Tinashe HIRM present present present

Lunga Zibusiso HMRK present present present

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