SMALL BUSINESS MANAGMENT - ANOTHER ASSIGHMENT SAMPLE

NAME:                                   THE OTHER WOMAN IN MARRIAGE

REG. NO.:                              07069373637

DEPT.:                                    BUSINESS ADMINISTRATION

FACULTY:                            MANAGEMENT SCIENCE

GROUP:                                 C

LEVEL:                                  500

COURSE:                               SMALL BUSINESS MANAGEMENT

COURSE CODE:                            BUS 413

TOPIC:                                   “CHOOSE ANY SMALL BUSINESS IN YOUR AREA AND CARRYOUT A FEASIBILITY STUDY OF THAT ENTERPRISE”

SOLUTION TO THE ASSIGNMENT:

THE PRELUDE: Biscuits are the most consumable wheat-based bakery product. They are highly nutritious, easy to digest, compact in size, can be preserved for a long time and are easily and cheaply transportable over a long distance because of their lightweight. The feasibility is on the production of 1000KG of biscuits per day working for 8 hrs. daily of 275 days a year.

The Biscuit industry from available data shows growth at a compound annual growth rate of 2% between 2004 and 2009 and about 10% in 2012. The plain cookies segment led the cookies (sweet biscuits) market in Nigeria, with a share of 96%. Research findings also indicates a gap of 50% supply of local biscuit not met by local producers which is met by smuggling since there are outright ban in importation

MARKET POTENTIAL: With the changing socio-economic environment i.e. increased literacy rate (about 65%), higher per capita income, increase in birth rate, growing number of school children, higher living standard and increased tourist population etc., one can expect at least 20% growth rate in Biscuit production in 2014.

PLANT CAPACITY: The plant Production plan is to produce 3 most widely consumed variants of biscuits namely: CRACKER BISCUIT, COASTER CRISPY BISCUIT, and CHOCOLATE SPREAD. The plant will have an installed capacity to produce 150kg of Biscuit per hour and will produce 1,008kg per day which is about 80% of installed capacity working for a single shift, 8 hours a day, and for 280 days a year, and then will grow annually for 10% until the installed capacity is achieved.  The plant will employ 14 factory workers both skilled and semi-skilled and 9 administrative staffs.

MACHINERY TO USED ARE AS FOLLOWS

1.         Flour mixer

2.         Rotary forming machine for hard Biscuit

3.         Rotary forming machine for soft Biscuit

4.         Tunnel Gas Oven

5.         Oil Spray machine

6.         Cooling conveyor

7.         Layout Turning Machine

8.         Sandwich machine

9.         Packaging

Equipment can be sourced in Nigeria and in china.

FINANCE:   Total set up cost excluding land and building for the capacity envisaged is 29million naira which breakdown includes machines of 14.5 M, generators 3.7M a working capital requirement for 3 months of production of 5.4M and other cost for preliminary expenses and NAFDAC certification.  Annual production cost for this capacity is 15.9M which includes material usage of 10M and utility of 2.3M.

At average weight of product is 25gramms/packet and 40,000 Packets Daily(1Ton) or 555 cartons daily Turnover for the first year is about  -N- 40.4M  and a net profit before taxation of 14.9M. According to the projected income statement, the project will start generating profit in the first year of operation.   The project’s initial investment will be fully recovered within 1 years.

 REFERENCES:

REFERENCES:

www.theotherwomaninmarriage.blogspot.com

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