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SAMI Agricultural Equipment Trading Overview

The association was formed to fulfill members' basic needs and develop their society. Its mission is to collaborate knowledge, money, and resources to minimize socio-economic issues. It started in 2004 with 4 founding members and savings from previous employment. It now has 21 employees and 8 members. The association provides goods delivery and credit sales to members. It started with 54,000 birr in capital and has grown to over 10 million birr in current assets and 3.6 million birr in fixed assets. It makes over 110,000 birr in monthly profits excluding salaries. Challenges included lack of initial capital, supply issues, and inexperience, but it has overcome difficulties through training and incentives.

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8 views7 pages

SAMI Agricultural Equipment Trading Overview

The association was formed to fulfill members' basic needs and develop their society. Its mission is to collaborate knowledge, money, and resources to minimize socio-economic issues. It started in 2004 with 4 founding members and savings from previous employment. It now has 21 employees and 8 members. The association provides goods delivery and credit sales to members. It started with 54,000 birr in capital and has grown to over 10 million birr in current assets and 3.6 million birr in fixed assets. It makes over 110,000 birr in monthly profits excluding salaries. Challenges included lack of initial capital, supply issues, and inexperience, but it has overcome difficulties through training and incentives.

Uploaded by

Haftamu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Vision of the enterprise

The association would like to see the fulfillment of their members basic needs and well developed society.

Mission of the enterprise


The interested group [parties] aimed to collaborate willingly their knowledge, money and all resources in order to minimize their socio-economic bottlenecks with association procurement and other service rendered.

SOURCE OF THE BUSINESS IDEA


They had saving their money when they work before they start new business and credit association in their working environment and the money they saved became grow over some period of time. This accumulated money enforced all of the members to come up with new business idea. Their idea was why do not we start a new business with the money we have in our account today? then this idea was accepted by all member and with this idea the business established on tikimt 2004 with the name of SAMI AGRICALTURAL EQUOPMENT TRADING

NUMBER OF EMPLOYEES INVOLVED IN OPERATING AND MANAGEMENT ACTIVITIES


At the 1st year of their operation the association had no any recruited and hired employee, all the front runners of the business were four people out of the members who based on their willingness. This was from megabit 12/ 2003 hidar 1/2004. Starting from hidar 1/ 2004 on wards they hire employees. Today, the business has 21 employees and 8 [Link] of the 8 members the 29 employees are collage graduated students (accountant, service providers). The association had around 8 area shops spreading over 4 different kebeles and villages at convenient sites and three stores for commodity distribution in Maichew. In order to address the increasing need of commodity distributed service on fair price the association has expand its service in Maichew, in addition to the former once.
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SERVICES IT GIVES
This association operating in Adama, that it has made it possible for its corporate customers to provide door to door genuine and fair service on fair price at the time of their need for goods delivery of their demand. Besides this, the business makes its customers profitable for those who take more goods and sell in their own shops. Normally, today the association sales different imported consumption commodities and local farm products such as Teff, Barley, and Wheat etc to the society in Adama town in different kebeles, the association render credits sales service to its member. The association was not commenced from the protective of business concept to minimize the daily routine problem of the members financial difficulties. So the members save their money.

THE AMOUNT OF CAPITAL THEY HAD INVESTED


The business was established by the capital of birr 54,000 that was contributed by the members of enterprise. Out of this birr they loan the
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20,000birr from a bank and they contributed the 44,000 birr for each 4,000 birr who are total of 8 peoples.
CURRENT CAPITAL OF THE BUSINESS Current Asset

Today this business is growing up and have over birr 10,000,000 of current asset
Fixed Asset
1.

Their estimated fixed asset is birr 3,600,000. Totally, their total capital is birr 6,600,000.

PROFIT CONDITION OF THE BUSINESS


Today this business gets profit above 110,000 birr per month excluding workers salary. They have two FSR cars to transport their goods from these cars they get minimum of 520,000 birr per month.

CHALLENGES CONSTRAINTS

OF

THE

BUSINESS

OR

Their first major difficulty they faced when starting their operation was lack of sufficient initial capital. According to their responses, this problem has become more critical when they intend to expand their businesses. The other problems they faced later were: 1. Shortage of information of goods in a current market 2. Shortage of supply of raw materials 3. Lack of interaction with the same other business 4. Lack of working experience 5. Marketing problems 6. Credit problems

Marketing challenges as I have said earlier the workers of this association were among the member of the association, as they are fresh for these kind of business, they had lack of experience in serving their customers. And also the abnormal competition or negative images of the competitors were their core challenges. Financial challenge the shortage of money was the main challenge of their business and their vision. Because of these problems they were unable to run their business as their need, especially at the time they opened the first shop they were suffered from working [starting] capital problem. Management challenges the main challenges of the management were image building, coordinating the workers, creating awareness about the business and other related bottlenecks.
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The association overcomes so many difficulties and challenges by taking different courses of action, such as, providing their member experience share with similar association, incentive to their employees and awareness.

OPPORTUNITIES IDENTIFIED

AND

THREATS

THEY

HAVE

This enterprise identified something considered as opportunities and threats but for the matter of their business secrecy they keep silent while a group asked them to disclose about their opportunities and threats, in general.

Strengths and weaknesses of the business


Strength: [Link] have co-operative workers 2. They come all the goods on time 3. They put all of their business in market Weaknesses: they dont have information about the current goods need to the customers (they dont study the need of the customers).

Conclusion
Nowadays, the groups were within a normal program to run their business. They get all things what they want in their daily works by making
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their workers initiative and willing to do over a long time ,even also they are more profitable since as they grow up/develop their potential to solve the problems/challenges i listed above. In my opinion to have a good business you must face many problems and you must tackle/overcome all these problems, and it is that after this a successful business will come.

Common questions

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The association aimed to enhance market presence and customer satisfaction by delivering goods door-to-door at fair prices and by selling both local farm products and imported commodities. They also provided credit services to members and nurtured a cooperative workforce, although they acknowledged a need for improved customer research .

The asset base of the association has grown significantly since its inception. Initially, they started with a total capital of 54,000 birr. Currently, their assets have increased to include over 10,000,000 birr in current assets and 3,600,000 birr in fixed assets, with a total capital of 6,600,000 birr .

The association's journey illustrates that facing and overcoming numerous challenges, such as initial capital shortages and market competition, are essential for business resilience. Their proactive strategies in employee engagement, experience sharing, and incremental growth highlight the importance of adaptability and continuous learning in achieving sustained success .

While the association did identify potential opportunities and threats, they chose not to disclose them due to business secrecy concerns. This approach might safeguard their strategic advantages from competitors or mitigate potential business risks if the identified threats were openly acknowledged .

The founding members of the association obtained their initial capital through personal savings and a bank loan. Each of the 8 members contributed 4,000 birr, totaling 44,000 birr, and they secured an additional loan of 20,000 birr from a bank, making their total initial capital 54,000 birr .

During its early operations, the association faced several challenges including insufficient initial capital, a shortage of market information, supply shortages, lack of experience, marketing issues, and credit problems. They overcame these challenges by sharing experiences with similar associations, providing incentives to employees, and creating awareness about the business to improve worker coordination and public image .

The cooperation among association members contributed to solving socio-economic challenges by pooling their resources, knowledge, and financial contributions to establish a business that provided fair-priced goods and services, creating employment opportunities, and reducing financial constraints through credit sales .

The association identified cooperative workers, timely delivery of goods, and the ability to market their products as their strengths. However, they also noted weaknesses, such as a lack of market research concerning customer needs and insufficient customer feedback analysis .

The association's mission focuses on knowledge and resource collaboration to minimize socio-economic bottlenecks. This aligns with operational activities like providing fair-priced goods and services, member credits, and expanding their business to address growing demand. Their success in accumulating substantial assets and profits reflects the practical execution of their mission .

External factors like competition and market conditions have exerted pressure on the association, introducing challenges such as negative competitor perceptions and market information shortages. In response, the association adapted by enhancing customer service, incentivizing employees, and focusing on cooperative engagement to maintain and improve their competitive edge in the market .

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