COLLEG OF BUSINESS AND ECONOMICS DEPARTMENT

MANAGEMEN GROUP ASSIGNMENT

Business plan on Best Bakery

COURSE TITLE - ENTREPRENEURSHIP

COURSE CODE-MGMT 1012

Set by: [Link] alemu

[Link] MULUGETA

[Link] AREGA

[Link] MULU

[Link] ALENE

[Link] GASHAW

[Link] LAKE

[Link] TAYE

[Link] ESUBALEW

[Link] GIRMA Submitted To: MULUGETA BELAYNEH

Submission Date: 08/01/2015

 Table of Contents

1. Executive Summary ………………………………………………………………………….1

1.1 Opportunity …………………………………………………………………………...….1

1.1.1 Problem ……………………………………………………………………..….. 1
1.2 Solution …………………………………………………………………………………..1
1.3 Market ……………………………………………………………………………………1
1.4 Competition …………………………………………………………………………..….1
2. Introduction ……………………………………………………………………………….…2
2.1 Background of Best Bakery………………………………………………………………2
2.2 Objectives of Best Bakery ……………………………………………………………….2
2.2.1 General objective ………………………………………………………….…….2
2.2.2 Specific Objective …………………………………………………………..…..3
2.3 Mission of Best Bakery………………………………………………………………..….3
2.4 Vision of Best Bakery ………………………………………………………………..….3
3. Considerations In Selecting The Project…………………………………………………...…3
4. Location of project……………………………………………………………………...…….4
5. Sources of capital……………………………………………………………..........................5
6. Project layout/ Infrastructure.……………………………………………………………..….5
7. Advertising Strategy ………………………………………………………………………....6
8. Financial Analysis……………………………………………………………………….……7
8.1 Building……………………………………………………..……………………………8
8.2 Plant machinery and material costs for production…………………………………...….9
8.3 Costs of supply…………………………………………………………………………...9
8.4 Manpower and Supplies expense ………………………………………………………10
8.5 Utility expense………………………………………………………………………….10
8.6 Annual costs………………………………………………………………………….…11
9. Market Analysis……………………………………………………………………………..11
9.1 Market size…………………………………………………………………………...…11
9.2 Products……………………………………………………………………………...….12
9.3 Demand Forecasting………………………………………………………………...…..12
10. Project Management....… ....................................................................................................14
10.1 Organizational structure………………………………………………………….……15
10.2 Major duties and responsibilities………………………………………..………….….15
11. Project evaluation………………………………………........................................………...21
12. Environmental feasibility…………………………………………………………………....22
13. Risk assessment……………………………………………………………………….….…22
14. Project implementation …………………………………………………………………......23
15. SWOT Analysis…………………………………………………………………………..…23
15.1 Strength……………………………………………………………………………..….23
15.2 Weakness…………………………………………………………………………..…..24
15.3 Opportunity………………………………………………………………………...…..24
15.4 Threat………………………………………………………………………………......24
16. Conclusion…………………………………………………………………………….….....24
17. Acknowledgments……………………………………………………………..……………26
 1. Executive Summary

1.1 Opportunity

1.1.1 Problem

There is a shortage of freshly baked bread and pastries where customers can get
high quality in Debre markos town and around.

1.2 Solution

Best Bakery offers a broad range of bread and pastries products, all from high
quality row materials. Best Bakery provides to all of its customers by providing
each customer bread and pastries products made to suit the customer, down to the
smallest detail.

1.3 Market

Because Debre markos has relatively location advantage bread and pastries
products are very much in demand. Throughout the year, bread and pastries
products are in significantly high demand. Much of the day’s activity occurs in the
morning hours, with a relatively steady flow for the remainder of the day.

1.4 Competition

Competition in the local area is somewhat scarce and does not provide nearly the
level of product quality and customer service as Best Bekery. Local customers are
looking for a high quality product in a relaxing atmosphere. They desire a unique,
exclusive experience

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.

2. Introduction

2.1 Background of New Bakery

The birth date of Top bakery was in 2014 E.C. The establishment of and
construction of new bakery is in Debre markos town, o2 kebele as a basis for
production and distribution of bread. In this area, the idea of establishing this
business is penetrated in many of owners mind and appropriate to establish the
business. From the beginning the business is formed in the form of partnership
with equal capital accumulations. The accumulated capital; used for beginning the
business is 1million ETB which 80% is funded by partners and the remaining 20%
is borrowed from other financial institutions as a loan.

Best bakery (BB) engaged in providing quality product at fair market value for its
clients. From the beginning the business attempt to distribute its products through
different distribution center that it will open. During the first establishment, the
business purchases necessary raw materials from surrounding factories.

2.2 Objectives of Best Bakery

2.2.1 General objective

Generally, Top bakery aims to:-

 Increase its customers and production level throughout times to

increase its return.
 Satisfying the customers wants as an essential for the business
survival and competition.

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 2.2.2 Specific objectives

Specifically, the Best Bakery aims to:-

 Provide the product through different distribution center

 Increase the efficiency of current resource
 Offer a quality services attached with selling product

2.3 Mission of Best Bakery

 To provide quality product at fair market price/value by using quality raw

material supplied by surrounding manufacturing companies.
 To assess the change in current demand and satisfy the customers need to
increase the business profit.

2.4 Vision of Best Bakery

 To build the flour factory in 2020 E.C to improve the cost of

production which currently purchased from other factories and to
save different production cost incur associated with transportation.
 To open a new plant in surrounding small towns in order to ensure
the profitability of the business.

3. Considerations in Selecting the Project

Bread still remain one of the more common popular and stable food that you would find
in Ethiopia today. Bread is consumed by all - the old, young poor and rich consume bread
on daily basis. Bread production still remains one of the best investment venture one can
think of setting up in Debre markos town. Irrespective of your location, there is always
people that want to buy and eat bread. Bread is regarded as a food for the masses. It is
taken as breakfast in many houses

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Finally, the project will help to increase the revenues of owners.

The main factors in selecting the project are:-

 The current unbalance between the growth of town and demand for
consumption of bread.
 The Location of former bakery business is mostly concentrated at
the center of the town. So, many people lived around the town face
that has shortage of bread and the existence of enough demand.

4. Location of Project

The project will be located in Debre markos town in 02 kebele. This location is
selected because of the following considerations:-

 In the 02 kebele there are high populations and low bakeries. This high
population in turn brings the increase of demand for projected business.

 This location will help to approach/easily get/ the raw materials from the
nearest towns/area when the business is constructed its own factory in the
near future.

 Decrease current competitions highly observed in the town.

 Because of easily getting of the license from the government. This will be
a helpful for the business to be free from any problems will occurred if the
business start to build its own factory.

5. Source of capital

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From the beginning

of establishment the project is financed through individuals` investment and loans

from Banks. Each partner contributions for the establishment of the project
presented in the following table:

Partners’ investment

No Partners Name ETB CONTRIBUTTED TO

THE PROJECT
1 TESFAYE MULUGETA 64000
2 TADESSE ESUBALEW 64000
3 TADESSE GASHAW 64000
4 MIHRETU MENGESTU 64000
5 TESFAYE LAKE 64000
6 KALKIDAN ALENE 64000
TOT 324,000
AL

The remaining sources of capital (i.e. 96,000.00) which is 20% of the total capital
funded from banks as loan.

6. Project Layout (Infrastructure)

The surrounding of the Top bakery project will be set in an attractive layout.

That means the buildings position for the convenience for management staffs, easy
to safeguard the surroundings for guards and safe to the Janitors to clean.

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Layout

S / N I T E M S I Z E QUANT. P U R P O S E

2
1 Administrative office 1 0 m 1 For administration & management

2 Baking bread room 1 8 0 m 2 For baking/preparing bread

3 B a t h r o o m 2 0 m 2 F o r W a s h i n g

4 Material storage class 1 0 0 m 1 For storing flour and other materials

5 Class for guards 1 2 1 For keeping/safeguard

6 Staffs for employees 6 0 2 For resting during tiredness of employees

7 Class for launch 4 0 1 For providing food for employees

7. Advertising Strategy

It’s important to develop an advertising strategy that will work most effectively
with the target market. It will be used social media to create an online presence for
the business, Or It will use newspapers and flyers. In addition to this, the business
organization will use the following advertising strategy:

 Preparing business card

 Preparing brochure
 Participating in different bazaars
 Debre markos FM 95.1 Radio
 And other social interactions

8. Financial Analysis

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The project will start the operation with Birr 1million. Out of this 80% of the total
amount of investment is financed by the owners (384,000.00) and 20%
(96,000.00) is from banks as a loan which will be paid for the next five years.
Most of this investment will expanded on planting the business for future rather
than increasing short term gain of owners. This means some fixed asset of the
business may use high portion of the investment.

The investment arrangement and expenditure expected is preserving on the

following constructive table with its respective category.

Financial analysis

S/ N I t e m / d e s c r i p t i o n M e a s u r e m e n t Q u a n t i t y Unit price Total price

1 Land purchase 6 0 X 3 0 - - 7 6 , 4 0 0
2 Land preparation M - - 2 , 0 0 0
2
3 B u i l d i n g M 4 - 120,000
4 Plant mach.&equip. - - - 2 5 , 0 0 0
5 Man power & salary - - - 110,400
6 S u p p l i e s - - - 1 0 , 0 0 0
8 Working capital - - - 110, 600
9 U t i l i t i e s - - - 1 5 , 6 0 0
1 0 O t h e r c o s t s - - - 1 0 , 0 0 0
T O T A L 480,000.00

8.1 Building

The proposed project will consist of four different buildings. These are buildings
for the purpose of planting machinery, buildings for the purpose of storing
purchased materials, buildings for management and staffs and buildings for other

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purpose (i.e. showering house, bathrooms, etc.).The investment arrangement for
these buildings is presented as follows:-

S / N D e s c r i p t i o n Measurement Q u a n t i t y Unit price T o t a l p r i c e

/Items/
1 C e m e n t P k t 1 5 0 4 0 0 1 5 , 0 0 0
2
2 Roofing sheet M 2 0 0 1 2 0 4 , 0 0 0
3 N a i l K g 1 0 4 0 4 0 0
2
4 D o o r s M 1 0 1 0 0 0 3 , 0 0 0
2
5 W i n d o w s M 1 5 4 0 0 6 , 0 0 0
6 L a b o r c o s t s - - - 1 0 , 0 0 0
7 Electric mainten. - - - 3 , 0 0 0
8 Design cost s - - - 1 0 , 0 0 0
9 W a t e r p i p e - - - 1 0 , 0 0 0
1 0 Fire controller - - - 3 8 , 6 0 0
1 1 Other related material cost - - - 2 0 , 0 0 0
T o t a l 120,000.00

8.2 Plant machinery and material costs for production

S / N D e s c r i p t i o n Q u a n t i t y U n i t p r i c e Total price
1 G i l l s 3 3 0 0 0 9 , 0 0 0
2 Mabukia/ baldi 5 1 5 0 7 5 0
3 Plantary mixer 3 2 0 0 0 6 , 0 0 0
4 F l o u r s i f t e r 2 5 0 0 1 , 0 0 0
5 Working tables with aluminum top 3 4 0 0 1 , 2 0 0
Total 17,950.00

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8.3 Cost to supplies

S/N D e s c r i p t i o n Measurement Quantity Unit price Total price

1 W h e a t F l o u r K g 2 0 0 6 5 0 13,000
2 S a l t K g 2 0 0 3 . 5 7 0 0
3 Oil/leaving agent K g 5 5 0 2 5 0
4 Y e a s t K g 2 0 3 0 6 0 0
5 Edible color & K g 1 0 1 5 1 5 0
Flavor
T o t a l 14,700

8.4 Man power and supplies expense

S/N P o s i t i o n Qualification Experience No. req. Monthly salary Annual salary

1 [Link] BSc in production 2 1 2 , 5 0 0 3 0 , 0 0 0
2 P u r c h a s e r Diploma in purchasing 3 1 1 , 5 0 0 1 8 , 0 0 0
3 Sales person Diploma in marketing 3 4 1 , 5 0 0 1 8 , 0 0 0
4 B a k e r 10th grade& above 2 4 1 , 0 0 0 1 2 , 0 0 0
5 C a s h i e r Diploma in accounting 2 1 1 , 5 0 0 1 8 , 0 0 0
6 J a n i t o r 6th grade and above 0 1 5 0 0 6 , 0 0 0
G u a r d 8th grade and above 4 1 8 0 0 8 , 4 0 0
Total salary expens e 110,400.00

8.5 Utility expenses

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 N o . Description M e a s u r e m e n t Consumption per month Yearly cost in birr

1 W a t e r L i t e r 1 0 , 0 0 0 4 , 8 0 0

2 Electric power K w / h 1 5 , 0 0 0 7 , 2 0 0

3 Telephone 2 5 0 3 , 6 0 0

Total 1 5 , 6 0 0 . 0 0

8.6 Annual costs

Salary expenses………………………………………………..110,400

Interest expenses (96,000x14%).....…………………..13,440

Supplies expenses………………………………………………14,700

Utility expenses………………………………….15,600
Depreciation expenses:
Building………………………………......4,000
Machinery and equip…………………...5,000
Transportation expenses…………………………,,,9,500
Rent expenses………………………..……………7,000
Total ………….179,640

Depreciation expense- building= Cost_-salvage value = 120,000-0

=4,000
Estimated useful life 30

Depreciation expense- machinery & equip.=25,000-0 = 5,000

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9. Market analysis

9.1Market Size

In the recent period, the bread market showed a better growth rate than in previous
years.
This was mainly because retail price cuts were fewer and less stringent, but it was
also because of the growing importance of added-value products, especially in the
specialty bread and bakery products sectors.

9.2 Products

Although the bakery products market grew faster than the traditional bread sectors
and it to became the target of price cuts, and growth slowed considerably in the
past. However, there was something of a recovery and its share of the total bread
market showed an increase through time.
This project, the New Bakery, is planned to satisfy the current needs and wants of
the people around the area which there shows a shortage of bread suppliers in the
near area. The demand for bread shows an increase through time. Because of this
reason we prefer to start the New Bakery project in this area/place. my sources of
revenue will comes from the daily sale of bread.

9.3 Demand Forecasting

we expect/forecast our sales by using a quantitative method called trend

projection/time series method that enables us to predict the next annual sales.
Depending on this trend we try to forecast for the next two or more years sales as
follows:

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 Year Estimatted annual revenues(00,000)
2014 1.728
2015 2.34
2016 2.52
2017 3.06
2018 3.60

This trend projection method uses the formula that is a linear relationship between
annual sales volume and the year that we can expect.

Y=a+bx where, x- no of years

a -intercept relationship
b- Slope relationship

2
X Y X X y
1 1 . 7 2 8 1 1 . 7 2 8
2 2 . 3 4 4 4 . 6 8
3 2 . 5 2 9 7 . 5 6
4 3 . 0 6 1 6 1 2 . 2 4
5 3 . 6 0 2 5 1 8
2
 x = 1 5  y = 1 3 . 2 3  x = 5 5  x y = 4 4 . 2 1

Computation for the values of a and b:

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a = x2(y)-x(xy) = 55(13.23)-15(44.21) = 64.65 =1.29
nx2-(x)25(55)-(15)2 50

b = nxy-x (y) = 5(44.21)-15(13.23) = 22.6 = 0.45

nx2-(x)25(55)-(15)2 50

So, here, y=a+bx

Y6 = 1.29 + 0.45(6) = 3.99
This means that the next 2011 annual sales will be 3.99x100,000= 399,000
Y7 = 1.29 + 0.45(7) = 4.44
Annual sales for 2012 will be 4.44x100,000 = 444,000
Y8 = 1.29 + 0.45(8) = 4.89 X 100,000 = 489,000

10. Project management

The proposed project will have consolidated management system controlled by the
owners of the project. This enables us to get the profit that we estimate and
minimize the cost of administrative through replace other employees being hired
from outside. Besides, to business owners other employees will be hired on
permanent and contract basis.
10.1 Organizational structure

General Manager

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 Finance dep`t

Purchasing dep`t Selling dep`t

Janitors Production dep`t

Guards

Bakers Other employees

10.2 Major Duties and responsibilities

From the beginning the major activities performed in organization will expect to
done by the owners to minimize the related initial cost and to increase the
profitability of the business.
General Manager will be responsible to lead and control all other employees to
attain the goal of the organization. The purchaser will be responsible for search
market and present the supplies with reasonable market price.

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The sales person will be responsible for selling the prepared product by searching
and attracting a good market segments to increase the share of market. Finance
department will be responsible to prepare and follow up the business budget and
periodic control of cash inflows and out flows. It also responsible to pay the
employee`s salary and wage in time and in accurate ways. These all are the major
responsibilities related to administrative department.
The other major duties are related to production department. Under this
department there are responsibilities to prepare and bake a quality and attractive
product for customers. They will be responsible for the use of the organization`s
input materials and other equipment in proper ways.
In addition to these responsibilities, other employees work in organization will
have different responsibility related to their jobs.

These are the responsibility declared by the organization`s administrative to

increase the earning of the business and to ensure the benefit of employees. These
duties are the responsibilities given to guard, janitors and other contract
employees. Guard will be responsible for keeping the security of the surrounding
of the business organization. Janitors will be responsible to keep the organization
clean and make the compound attractive/ maintain the attractive site in the
organization/. They are also responsible for the proper use of the organization`s
property in a cleaned and safety ways.

Generally, imposing these all responsibilities to each individual is important to

keep the business strength and increase the earning of the business and benefit of
employees too.

Best Bakery

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 Income Statement
For The Year Ended Augest,2014-2018

2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8
R e v e n u e s 1 7 2 , 8 0 0 234,000 2 5 2 , 0 0 0 3 0 6 , 0 0 0 3 6 0 , 0 0 0
E x p e n s e s :
Salary expense 1 1 0 , 4 0 0 110,950 1 2 0 , 5 0 0 1 2 5 , 5 0 0 1 2 7 , 8 0 0
Interest expense 1 3 , 4 4 0 14,100 1 5 , 0 0 0 1 6 , 0 0 0 16,95 0
Supplies expense 1 4 , 7 0 0 1 5 , 0 0 0 1 6 , 0 0 0 1 6 , 8 5 0 1 7 , 1 0 0
Utility expenses 1 5 , 6 0 0 1 5 , 7 5 0 1 6 , 1 0 0 1 6 , 1 5 0 1 6 , 9 0 0
Depreciation exp :
-Machinery 5 , 0 0 0 5 , 0 0 0 5 , 0 0 0 5 , 0 0 0 5 , 0 0 0
-Building 4 , 0 0 0 4 , 0 0 0 4 , 0 0 0 4 , 0 0 0 4 , 0 0 0
Travel expense 9 , 5 0 0 1 1 , 0 5 0 1 2 , 0 5 0 1 2 , 9 0 0 1 3 , 5 0 0
Rent expense 7 , 0 0 0 7 , 0 0 0 8 , 0 0 0 8 , 5 5 0 9 , 0 0 0
Total operating expenses 1 7 9 , 6 4 0 1 8 2 , 8 5 0 1 9 6 , 6 5 0 2 0 4 , 9 5 0 2 1 0 , 2 5 0
Operating income ( 6 , 8 4 0 ) 5 1 , 1 5 0 5 5 , 3 5 0 1 0 1 , 0 5 0 1 4 9 , 7 5 0
T a x 2 0 % - 0 - 10,230 1 0 , 6 9 0 2 0 , 2 1 0 29,95 0
N e t i n c o m e
(6,840)
40,920 42,760 80,840 119,800

Top Bakery

Opening balance sheet

Augest 8, 2014

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Assets:
Cash………………………………………………….…289,760
Investment for:
Supplies………………..………………………….14, 700
Machinery..........................................................25,000
Utilities…………………………………….……...15,600
Land……………………………………….……....78,400
Building……………………………………………120,000
Others ……………………………………………..10,000
Total assets………………………………………..……….480,000

Liabilities:
Accounts payable…………………………………………..96,000
Owner`s equity:
Owner`s capital………………………………….……384,000
Total liabilities and owner`s equity………………………480,000

New Bakery
Statement of owner`s equity
For the year ended June, 30,2015

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Balance sheet Augest 8, 2014 capital…………………………384,000
(-) net loss year June 30, 2015…………………………………….(6,840)
Balance on June 30, 2015…………………..…………………377,160

Top Bake
Balance sheet
June, 30, 2015
Assets:
Cash …………………………………………..206,260
Investment for:
Land……………………………………………78,400
Supply …………………………………………14,700
Machinery………………………………………25,000
(-) [Link]…………………………………..(5,000)
Building………………………………………….120,000
(-) accu,deprn……………………………………(4,000)
Utility……………………………………………..15,600
Others …………………………………………...15,600
Total assets……………………………………466.560

Liabilities:
Accounts payable………………………………………………82,560
Owner`s equity:
Capital ………………………………………………..……….384,000
Total liabilities and owner`s equity……………………………466,560

Top Bakery
Statement of cash flow
For the year ended June 30,2015

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Source of cash 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8
Earnings before interest and tax 2 0 , 2 8 0 6 5 , 2 5 0 7 0 , 3 5 0 11 7 , 0 5 0 1 6 6 , 7 0 0
Depreciation machinery & equip. 5 , 0 0 0 5 , 0 0 0 5 , 0 0 0 5 0 0 0 5 , 0 0 0
Depreciation building 4 , 0 0 0 4 , 0 0 0 4 , 0 0 0 4 , 0 0 0 4 , 0 0 0
Total source of cash 2 9 , 2 8 0 7 4 , 2 5 0 7 9 , 3 5 0 1 2 6 , 0 5 0 1 7 5 , 7 0 0
Cash out flows
Payment of interest 1 3 , 4 4 0 1 4 , 1 0 0 1 5 , 0 0 0 1 6 , 0 0 0 1 6 , 9 5 0
Payment of tax 0 1 0 , 2 3 0 1 1 , 0 7 0 20,210 2 9 , 9 5 0
Payment of long-term loan 1 9 , 2 0 0 1 9 , 2 0 0 1 9 , 2 0 0 1 9 , 2 0 0 1 9 , 2 0 0
Total cash out flows 32,64 0 4 3 , 5 0 0 4 5 , 2 7 0 55,410 6 6 , 1 0 0

Surplus/defici t (3,360) 3 0 , 7 2 0 3 4 , 0 8 0 70,640 100,600

Opening balance 0 (3,360) 2 7 , 3 9 0 72,660 143,300

Cash ending balance ( 3 , 3 6 0 ) 2 7 , 3 9 0 7 2 , 6 6 0 1 4 3 , 3 0 0 2 4 3 , 9 0 0

11. Project evaluation

Years C a s h i n f l o w s Cumulative cash inflows
2 0 1 4 ( 3 , 3 6 0 ) ( 3 , 3 6 0 )
2 0 1 5 2 7 , 3 9 0 2 4 , 0 3 0
2 0 1 6 7 2 , 6 6 0 9 6 , 6 9 0
2 0 1 7 1 4 3 , 3 0 0 2 3 9 , 9 9 0
2 0 1 8 2 4 3 , 9 0 0 4 8 3 , 8 9 0

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Payback period (PBP) =Years Before full recovery + unrecovered cost
Cash flow in next plan

= 4 + 269,300-239,990 = 4.12
243,900
PBP= 4 years and a month. This means that our initial investment cost will be
covered after 4 years and 1 month cash inflows.

Net present value (NPV)

Years cash inflows PV of cash flows @ 10%
2009 (3,360) (3,360)x0.909091=(3,054.55)
2010 27,390 27,390x0.826446=22,636.4
2011 72,660 72,660x0.751315=54,590.55
2012 143,300 143,300x0.683013= 97,875.76
2013 243,900 243,900x0.620921=151,442.63
Total PV of cash inflows……………..……323,490.79
(-) PV of cash outflows…………..…………..(269,300)
Net present value……………………….54,190.80
Therefore, this project is feasible because it has a NPV of greater than 0 or above
the equilibrium point.

Benefit cost ratio (BCR)

BCR = PV of cash inflows =323,490.8 =1.2
PV of cash out flows 269,300

So, the profit is greater than or higher than one.

12. Environmental feasibility

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As it is known environmental issue is the current critical things which require
detail study whenever any business is attempt to established. This is helpful to
assess the impact of that project on the environment as well. My project is planned
to engage in production process. Thus, our project is highly concentrated on the
use of electric power/energy to prepare/bake bread. This enables us to minimize
the pollution that our business can cause to the environment if we use other
sources of energy such as wood burning and use of kerosene. In addition to this
advantage the use of the source of power saves the product that our organization
can produce in different ways. In fact, bakery project doesn`t have any noise and
other influence with environment.

13. Risk Assessment

The risks for top bakery are there might be natural and human disasters we cannot
control natural disasters because they are uncontrollable but we can control human
made disasters by creating awareness on our employees we are going to insure our
assets by giving insurance.

14. Project implementation

In fact, at this stage there are different challenges that arise from evaluation of a
project. A project evaluated it is difficult to implement but with support if other
advisory and consultants who try to evaluate my project. I can conclude our
project as follows:
 Although some fixed assets require high cost at the beginning ,it enables to
plan the project for future on good ground

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  As the current earning of the project can cover all related expenses and
yield profit to owners, the length of period to cover initial cost never
frustrate the project from implementation.
When I decide to implement our project by using different methods and as I expect
some difficulties at this stage. Some of them are:

 Technical problem related materials

 Shortage of distribution point
 Unfamiliarity with customers. This may affect the test of market during
implementation.

15. SWOTAnalysis

15.1 Strength
 To prepare and bake a quality and attractive product for customer
 Increase market share by using low price strategy
 The organization use input materials and other equipment in proper
way.

15.2 Weakness
 The size of bread is small
 Lack of skilled man power

15.3 Opportunity
 It is good for poorer societies because of low price
 It is good for the society to create job opportunities

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15.4 Threat
 Lack of raw material
 Lack of electric power

16. Conclusion

As I know Bakery in Ethiopia is still a crucial and valuable activity because

countries like Ethiopia have citizens who want to consume bread more than once a
day. The needs and wants of the people for bread consumption in Debre markos
town grow from time to time that enables us to open/start the new bakery business
project in the town especially in kebele 05.

In reality, Bakery project can cause less environmental pollution because it can be
baked by electricity. This enables us to get our license from the government of the
country and the administrative office of Debre markos town. Thus, government
allows this kind of project to enhance the access bread for dwellers by encouraging
the newly open business firms and already existed business organizations in
Bakery project.
There are formal and informal as well as legal and illegal baking and selling of
bread in the country as a whole including rural and urban areas. However, we
prefer our project to be formal and legal one because I can distribute our product
and compete as I want without price fluctuation ( i.e. by setting my price
affordable for the people) and enables us to accumulate my own capital by provik
wants and serving them in satisfied WAYS.

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 ACKNOWLEDGMENTS

We would like to thank to our lecturer for the helping on this project, and We glad to
see the successful of our project.

THANKYOU ALL Augest 08-2014 E.C

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