Managers: Musisi John/ Tweheyo Brian

Location: Mukono

Town: Seta

Contacts:0706868174/0704534717

Jan, 2014 to December2019

U GANDA CHRISTIAN UNIVERSITY

MUKONO

FACULTY: BUSINESS AND ADMINISTRATION

COUSE UNIT: STRATEGIC MANAGEMENT

NAMESREG NO

Musisi John S12B06/430

Tweheyo Brian S12B06/803

TABLE OF CONTENTS i

1.0 Introduction.....................................................12.0 The Company....................................................1 3.0 Protudts and Services............................................14.0 The Market.......................................................25.0 Mission..........................................................26.0 Objectives.......................................................27.0 Company Summary..................................................38.0 Company Ownership................................................39.0 Start-up Summary.................................................310.0 Start-up Funding................................................411.0 Start-up........................................................512.0 Services........................................................613.0 Market Analysis Summary.........................................614.0 Market Segmentation.............................................614.0 Market Analysis.................................................715.0 Target Market Segment Strategy..................................816.0 Service Business Analysis.......................................817.0 Competition and Buying Patterns.................................818.0 Competitive Edge................................................919.0 Marketing Strategy.............................................1020.0 Sales Strategy.................................................1021.0 Sales Forecast.................................................1022.0 Milestones.....................................................1123.0 Management Summary.............................................1224.0 Personnel Plan.................................................1225.0 Pro Forma Profit and Loss......................................13

1.0 Introduction

Our project is about providing bakery services in Mukono district located in the central region of Uganda. This project idea was conceived after a serious and careful study that reflected a great need for improved bakery services. This shows that there is an assurance of the already market available hence making our project viable. Top class bakery expects to catch the interest of a regular loyal customer base with its broad variety of products. The company plans to build a strong market position in the Seta town and Mukono, due to the partners' industry experience and mild competitive climate in the area.Top Class bakery is located in Mukono-Seta town. It is there to meetthe needs of its customers by providing delicious and good bread, cookies, donates and cakes Top Class Bakery is a partnership company owned by Musisi John and Tweheyo Brian..

MISSION.

To provide good quality products while ensuring that our customers are satisfied, our employees are in the conducive environment and our share holders are getting good returns.

VISION“To be a model for best practices and innovation Bakery products”

CORE VALUES

Excellence

We pledge to offer the highest quality of products through continuous improvement and innovation to exceed our customer’s expectations.

Integrity

We shall promote consistently serve our customers with impeccable conduct, paying attention to rules and regulations while taking responsibility for our actions.

Team work

We shall promote efforts and interdependence in the company to achieve our set goals.

Respect

We believe that everybody matters. We shall therefore highly esteem our customers as we deliver the best products to them.

Keys to Success

1. Providing the highest quality product with personal customer service.

2. Competitive pricing

SCANNING THE ENVIRONMENT (SWOT Analysis)

Strength

There is no any bakery in Seta Town. Quality products. Good location of the business that is Top Class Bakery is

located in Seta near kampala-Jinja highway. Skilled and experienced management plus directors. Our products are seasonal free.

Weaknesses

Limited funds.

Opportunities

There are many customers in Seta and Mukono.

Expect to get government support in terms of tax reduction. Partnership with Ntake Bakery.

Threats

High prices of raw materials. Competition from Mukono Bakery.

Goals1. By 2014 to have established over 3 new and functional

branches in different areas of the country.2. To increase our market share by 5% each year in order to

have many customers for more profits.

Objectives3. To be one of the top three bakeries in Mukono in terms of

market share in all significant markets we serve.4. To satisfy our customers by proving quality bakery

products, developing new products and improving the efficiency of our plant.

5. To offer its products at a competitive price to meet the demand of the middle-to higher-income local market areas.

6. To achieve the annual growth in earnings per share to 10%or better.

2.0 The Company

Top Class bakery is a partnership business which is owned by Musisi John and Tweheyo Brian, it’s located in Mukono-Seta town. The two parterres double as directors.

Katungye Simon will be the managing director of the company and will be managing all the activities carried out like purchasing of raw materials, production and marketing the company sales. The company will however hire other co-workers who will help to do production and other company activities .Each section will have a supervisor to work hand in hand with the managing director and other managers who will beworking full time. The Company will have the production department, finance and accounting department, human resource department and marketing department so as to ensure that there is better managing of

all company resources, more sales and more profits made. The company intends to hire two full-time pastry bakers and six part-time baristasto handle customer service and day to day operations.

The company will also invest more in training the workers to ensure that the products they make meet the demands of their customers and quality to the market for which to out compete other bakeries in the area of service.

3.0 Market Analysis Summary

Top Class will be targeting various groups of customers and it will work hard to distinctly appeal to the existing. Bulky customers like schools, hotels and other bulk consumers are give the first chance take part in decision making of the company by filling questionnaires from which the bakery meets the needs. To win the big market share we shall increase produtative, improve technology and employ relationship plus the public responsibility.

4.0 Target Market Segment StrategyTop Class will target each of the different groups separately. Supermarkets will be targeted by offering a quick, convenient service because they tend to sell their products in a short period of time. Ifthe supermarkets receive from their suppliers (each supplier thrice a week), then Top Class will ensure that their supplies to supermarkets are increased so as to increase on the quantity sold by responding positively to the demands of the supermarkets.

Retail shops mainly prefer to get the products in time at their point of sale. However, it is not that every company can match their requirements because there times when something is out of stock for some time. Top Class Bakery will try to make sure that the products are delivered in time as well as responding to their demands.

Dairies sell products that complement each other. This means that the mere selling of milk at the dairy, customers will sometimes have no time to move on to the nearby shop to ask for bread. This will therefore require Top Class Bakery to sell its products through dairies.

Schools need bakery product s like bread therefore we will be supplying all our products to school canteens since Mukono and Seta town have many schools.

5.0 Service Business AnalysisThe “bakery” industry has quite a big number whereby on one end of thecontinuum you have the informal sector which has the largest number ofbakeries and on the other end you have the formal sector dealing in the same products.

6.0 Competition and Buying Patterns.

Top Class’s competitors include:

Informal sector

Being very many producers on the market, this means that there is a variety of products put on the market. However, this does not guarantee that everyone who produces meets the demands of thecustomers; some will be bought because of their good quality others left out though some may be bought because there is no anyother option as far as stock is concerned. This therefore gives achance to Top Class to walk the talk by providing products of ‘top class’ to their customers so as to eliminate those of low class.

1. Formal sector

Some customers have a perception that anything which is muchmore expensive than other similar products on the market isof good quality. This has left many customers incorporatedwith such ideas and have failed to get the difference bytrying other similar products. However, Top Class will tryto match the standards so as to compete favorably with otherproducers from the formal sector.

The purchasing patterns of shops differ; thesupermarkets will ask you to first put a sampleof your products as a way of giving it a try. When customers tendto like the product, definitely the supermarket will ask formore supplies and this will be a great opportunity to sell alarge number of products to the customers which is very differentfrom other retail shops who will tell you to come back next timebecause they do not have money to purchase some of your products.

7.0 Competitive Edge

Top Class competitive edge is based on the size, quality & consistency in supply. Top Class identified out that the bakery industry and its market are so crowded which is

difficult to stand out. But Top Class will stand out by providing reasonable products depending on size and quality.

8.0 Products

Top Class bakery provides bread, donates, cookies, and cakes of all parties to its customers. This involves making bread, donates, cookiesand cakes of different sizes, color and packaging. Various ingredientsare used to give the products a perfect taste. Services are offered basing from the main plant, where the finished products are delivered to the possible customers and Top Class bakery will always emphasize acustomer-centric service where the customer’s needs are always the priority. Top class bakery caters to all of its customers by providing each customer products which suit him or her, down to the smallest detail.

The bakery provides freshly prepared products at all times during business operations. Six to eight moderate batches of bakery are prepared during the day to assure fresh baked goods are always available.

9.0 Services

Top Class bakery provides bread and cakes to its customers. Thisinvolves making bread donates and cakes of different sizes,colour and packaging. Various ingredients are used to give theproducts a perfect taste. Services are offered basing from themain plant, where the finished products are delivered to thepossible customers and Top Class will always emphasize acustomer-centric service where the customer’s needs are alwaysthe priority. Top Class bakery will meet the needs of its customers byproviding delicious and good bread, cookies, donates and cakes.Although there are many bakeries, it does not mean that eachbakery serves the customers up to their expectations. This is oneof the reasons why Top Class bakery has decided to join the

market and serve the customers up to their desires. Therefore,the taste and durability of the baked products will meet thedemands of both the sellers (retail shops) and the customers andthis will put Top Class bakery in a position of gainingsignificant market share and create critical long termrelationship with its customers.

10.0 Company market Summary

Top Class bakery is located Seta - Mukono and it will offer reasonable quality, priced & appealing products. The bakery will grow its market share based on utilization of various market strategies so as to get the attention of the customers.

11.0 The Market

The bakery industry is highly fragmented which gives little roomfor new entrants in the business. This has therefore put a strongand somehow positive competition in the industry so as to providequality products and services to the customers. Subsequently, thecustomers have a great influence over the products on the marketgiven that all have different tastes. However, Top Class bakeryhas managed to use market strategies (product differentiation,cost leadership, market segmentation, pricing, place, promotionand niche marketing) so as to ensure that it tries to win itsother competitors.

Top Class targets different market segments that is;

Super market with in Seta and Mukono. Retail shops in Seta and Mukono. Dairies. Schools.

12.0 Market Segmentation

Top Class will target at least four different market segmentswhich are;

Supermarkets will typically make up 50-55% of the clientele;supermarkets have quite a large number of customers comparedto other sellers.

Retail shops that receive a relatively high number ofcustomers; although almost never counts, retail shops alsodo have a relative number of customers as far as purchasingbakery products is concerned. Therefore, they provide goodmarket to our business.

Schools; even if most bakeries do not take schools to becustomers Top class bakery is concerned that schools areforming a big market to our business.

Dairies; these are set up in form of a grocery which meansthat our products meets their demand thus widening themarket for our products.

Marketing

We shall work with our advertising and marketing partners to develop clear marketing strategies for our products. This effort will set our products apart from a field of competitors that seems to lack a coherent marketing strategy.

Providing convenient, delicious, nutritious baked products and Offering consistently excellent customer services will be done.

We shall promote our products through special promotions and events. By offering prepackaged bakery products as gifts and free products forour customers. Special promotions will help increase awareness of our bakery products and offer an extra boost in income to our company.

We shall host contests on our bakery's website that will generate publicity and free press coverage.

We shall also do advertising on local radio and TVs so as to make ourproducts known in Uganda.

Marketing materials for Top Class Bakery will include the following items:

Business cards geared towards customer referrals. General business cards. Menu. Top class Bakery website. Print advertisements. Advertisements on Radio and TVs.

This marketing strategy will help us to focus on our marketing efforts by taking a long view, and looking for results on a daily and weekly basis to see that the chosen tactics are successful.

ProductionOur plant is located in Seta and also production of bakery products will be done on this plant till the opening of other plant outside Mukono.

Start-up Summary

Top Class will incur the following in production:

An oven A dough mixer Prover Refrigerator Racks and shelves Table/work surfaces

Creamer Piping bags Wire whisks Brushes Bread slicing machine Palettes knives Baking tins Rolling tins Scoops Measuring sale Weighing scale

Production process of most of our products1. Pre mixing.2. Mixing.3. Forming Baking.4. Cooling.5. Packaging

11.0 Milestones

Top Class will have several milestones early on that is;

1. Business plan completion. This will be done as a roadmap forthe organization. 

2. Set up the store.3. Profitability.4. Meeting other costs (packaging, delivery notes, receipts &

invoice and legal costs like license & permits, safe.)

Supply Chins.Top Class Bakery will use a number of supply chins so as to have many sales.

These will be;

1. Producer to customer.2. Wholesaler to Retail to customer.3. Retail to customer.

Stakeholder Relationships and AlliancesTop Class Bakery will maintain ongoing working relationships withnumerous stakeholders, including Moon super market, Sombe super market and other customers, it’s employees, the community of Seta, government and shareholders.

12.0 Management Summary

Musisi John has got good experience in all sorts of bakery sincehe once worked with Ntake Bakery this gives him a position to manage a bakery on his own. Musisi John and Tweheyo Brian saw no reason why he does not start up something of a similar kind wherehe can expose his skills and experience. He based the project on his knowledge of the bakery, his god communication skills with the customers and ambitions to prosper.

Tweheyo Brian has been managing and supervising the activities atTow and Tow Investments for a long period of time. This hasenabled him to get the required skills, knowledge and experienceto start out something on his own. Therefore he has been studyingwhat he can come up with so that he is the owner of the businessand that is why there is a business plan for a bakery.

The Founders/Directors, have the following duties:

Advise Board and receive guidance and approval from Board on general areas and major decisions.   

Develop and oversee daily operations, planning, and special events of Top class bakery and working closely with the Managers,Board of Directors, Production Team, and other volunteers.

Develop the marketing plans of the various areas and establish a marketing budget, develop marketing materials, advertising placement, website development and maintenance and measure effectiveness of marketing activities.

Personnel management (recruiting, hiring, training, supervision, evaluating, and terminating)

The Operations Manager duties will be as follows:

Advise Board and receive guidance from and approval from the Board on areas concerning financial matter.

Assist in personnel management in the areas concerning financial matters.

Coordinate fiscal management of the association, with the Director, and with approval from the Board.

Oversee preparation of the monthly and annual reports of activities and fiscal reports.

Coordinate, develop, manage, and report to Director and Board of Directors the management of the annual budget, including necessary revisions.

The Human Resource Manager Will be responsible for all workers welfare in the company.ie

Workers salaries, recruiting, hiring, training, supervision, evaluating, and terminating.

Will advise directors on which sector needs more workers and the number needed

The Board of Directors We shall have a minimum of five Board members. They represent various areas of business and the arts. The duties of the Board are:

To meet at least quarterly to discuss the organizational activities of the society and advise and approve the general direction. 

To make decisions on the fiscal annual budget for the best benefit of the organization, and hold annual meeting.

Maintain the organization's corporate books and meeting minutes. To each be a Chair of a certain area with relevance to the health

of the organization

ORGANISATIONAL CHART OF TOP CLASS BAKERY

13.0 Management Team

In keeping with our operations strategy, we have assembled a team of consultants to provide expertise and direction in key areas. We have also assembled an Advisory Board consisting of key individuals that will provide expert advice to our company when making strategic decisions. This board consists of individuals with particular

Board of Directors

Managing Director

General Manager

Production Manager

Marketing Manager

Finance Manager

Human Resource

Support Staff

expertise in new product development, entrepreneurship, and marketing.

24.0 Personnel Plan

Musisi John and Tweheyo Brian will be taking part in activities ofTop Class though not as a full time worker since he will beemploying other people to handle the production and marketingsections who will be paid a monthly salary as well as consideringsome incentives.

CORPORATE GOVERNANC what constitutes good corporate governance will vary, depending on the culture in which the corporation operates. What is considered goodcorporate governance in the United States might be considered unethical in other cultures. Conversely, what another culture might think of as good corporate governance might be considered unethical inthe United States. Still, some partial consensus has developed over time.

Our Corporate governance has the convergence of economics and relationships that determine a company's direction and performance. Its purpose is to optimize resources to promote accountability and efficiency within the corporate structure. Our company’s' corporate governance is set by the boards of directors, which will establish andpromote policies for the management and employees of the corporation. The board of directors is responsible to shareholders and customers for the corporation's outcome.

Corporate Governance Structure For our board to be effective, it will have a way to

guarantee accountability. This is an important feature of whether or not the corporate governance structure is successful. For example, if a policy or action isn't

properly carried out and/or the results that were expected either didn't occur or fell short of the goal, there must bea system in place to make adjustments. The board also will determine these correctional steps for management to administer to avoid future mistakes.

Communication Good corporate governance will bring accurate communication

of a number of aspects of business operations. Information must be communicated in a time and accurate fashion can include corporate financial performance, such as sales, profit, and loss data, and relevant economic data. Relevant economic data can include cash reserves and corporate debt load.

The activities in which the company engages in the course ofbusiness operations must also be reported in an open and timely fashion. The exact definition of timely can vary, however, depending on the jurisdiction. In general, this information is communicated, at minimum, in annual corporatereports.

Shareholder Protection Since Top Class bakery is a partnership business good

corporate governance will protect and promote shareholder interests and rights. Although this is usually interpreted

as a fiduciary duty to give shareholders as high a return ontheir investments as possible.

Short-term actions that promote short-term profit, but take legal and ethical risks that may result in negative actions against a corporation in the future, are generally not considered acting in the shareholders' interest.

Acting in the shareholders' interest also requires that a boardof directors pay close attention to employing competent andskilled senior corporate officers and executive.

Shareholder Accountability Corporate governance will help shareholders of Top Class to

determine the success or failure of a corporation. It's therefore important that shareholder and customer input are appropriately factored into all decisions made by the board.After all, it's the financial investment of these groups that enables a corporation to operate. To ensure this occurs, the board will be holding regular shareholder meetings to report on earnings and to discuss the direction of the corporation and the shareholders will able to inform and guide the discussion to ensure a favorable outcome.

Board of DirectorsThe board of directors is our corporation's primary rule-making body. Its members will generally be of high-level professionals with strong management backgrounds and understanding of common financial and business practices

Board Independence Although the board of directors answerable to shareholders,

the board will be able to operate independently. This is important in determining the direction of a corporate entity.

In some cases, where senior executives may want to take a company in a direction that the board of directors views as contrary to shareholder interests. The board will have the power to replace senior executives that board members do notthink are acting in the best interest of shareholders.

Policies and Actions The board will develop a set of policies and actions for

corporate managers and employees to carry out. Our policiesand actions are profit-driven. In other words, the main objective of our policies or actions is to produce a positive return on investment for the corporation as well asits shareholders and customers to which it's accountable.

Financial

Top Class Bakery needs 100,000,000 UGX of which it expects to raise 55,000,000 UGX and to borrow 45,000,000UGX from Centenary bank (five-year loan). This provides the bulk of the current financing required. Top Class expects sales of about 491,000,000UGX inthe first year, 567,000,000UGX in the second year, and 650,000,000UGX in the third year of the plan. Profits for this time period are expected to be approximately 13,000,000UGX in year1, 36,000,000UGX by year2, and 46,000,000UGX by year3. After carrying out the financial analysis that is calculating the NetPresent Value and the Benefit Cost Ration and after computing the income statement, balance sheet and cash flow statement, they reflect that the project is viable and worthy taking other factors remaining constant. The company does expect any cash flow problems.

Implementation Summary

Top Class Bakery will succeed by offering consumers high quality bakery products with personal service at a competitive price

This is an innovative product that addresses a major complaint of owners better than any of the competitors. Our marketing strategy is primarily based on making this information available to our target market, visually via point-of-purchase displays and graphicallyvia creative copy and graphics. This basic strategy should allow this product to stand out in a field of competitors that appear to employ no clear marketing strategy.

Executive Summary

Our project is about providing bakery services in Mukono districtlocated in the central region of Uganda. This project idea was conceived after a serious and careful study that reflected a great need for improved bakery services. This shows that there isan assurance of the already market available hence making our project viable. Top class bakery expects to catch the interest of a regular loyal customer base with its broad variety of products. The company plans to build a strong market position in the Seta town and Mukono, due to the partners' industry experience and mild competitive climate in the area.The project’s goal is to open up other branches all over the country so as to widen its production and supply coverage. Top class bakery also aims to offer its products at a competitive price tomeet the demand of the middle-to higher-income local market areas. This goal is to satisfy our purpose of increasing our per capita as well as ensuring better services extended to the customers. The project has a number of objectives like; to serve the desiresof various customers, to open up new branches in different areas of the country & to widen the customer base. Our biggest market will be supermarkets and the retail shops around the district, but still other areas around can also benefit from our projectThe pricing will be basically cost plus pricing. The investment needed by the project is 100,000,000 UGX of which55,000,000 UGX will be the equity, 45,000,000 will be a loan frombank . After carrying out the financial analysis that iscalculating the Net Present Value and the Benefit Cost Ration andafter computing the income statement, balance sheet and cash flowstatement, they reflect that the project is viable and worthytaking other factors remaining constant.