RSI ARSI

1. Background of organization

Bonga juice house is a newly established business enterprise in Bonga town,

in 2023 by partnership. The business intends to satisfy consumers demand by
supplying fresh juice with sweet breads, kukis and fruit like banana, mango,
orange, avocado and the like, with a reasonable market price to make profit in
a competitive business environment.

The startup cost of the business is birr 300,000, which is 60% financed by
incorporated enterprise’s members contribution and the rest 40% will be
from creditor like Micro Finance.

The finance is used to:-

 Purchase portable displays.

 Purchase production raw material
 Recruit employees and cover working capital of the business.

Our enterprises have following mission and objectives.

1.1Mission of our enterprise

- utilizing available resources effectively and efficiently.

- providing quality services to all of our fruit users.

- To realize the continuity of our business through customer centered.

- providing affordable living standards to its workers.

1.2Objective of our enterprise

- To maximize supply of fruit juice for our users at reasonable fair market price.

- To satisfy our customers through easily access to fruit juice in domestic market.
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1.3 Background of entrepreneur’s.

Our business enterprise is established as partnership from six individuals. Those are;-

1Fikre Senbet..…………..……as general manager

2. Sara Tsfaye…...............as production manager

[Link] Dubale………………….as market manager

4. Hayimanot Kasa…..............as HR manager

5. Alem Bekele……………….….as financial manager

6. Habitamu Geremew………………….as sales manager

Also, our business creates job opportunity for five employee

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Study Area or location of the organization
The potential customers of enterprise are societies like; students, employees, taxi drivers and etc.

Strategic location

Asella town, around Commercial bank of Ethiopia.

Our study area concerned to Asella town, due to different reasons;

1. Existence of high demand for Juices, breads, kukis and other fruit juices.

2. There is low competitor when compared to another area.

3. There is availability of raw material with low cost.

4. In general, the existence of favorable environmental condition to run our business.

3. Constraints

If our enterprise has not considered the impact of byproducts of fruit that affect the environment as a whole
there might be the following constrains;

1. Environmental pollution like, water and air

2. Loss of goodwill

3. Dissatisfaction of customers and employees

Project report on juice productionDEC,2023

Dep`t of ACCOUNTING
4. Legal liability

5. Assumptions

“If you cannot understand something, you cannot measure it. Assume that inflation rate is remains constant
for a given period of time.

5. Market research Analysis

Market research is a systematic process for determining and addressing needs. The need can be a desire to
improve current performance or to correct a deficiency. It is a part of planning processes often used for
improvement in individuals, education or training, organization or communities.

5.1 What is market?

These deals with current market condition that show high demand of product with reasonable price that help
us sustainability of our business enterprise growth.

5.2 Target market

The product of our business is fruit juice product. The brand of the business is designed to provide fruit juice
to all users of our product. Most of our customers need good quality and sufficient quantity of fresh fruit juice.

5.3 The Product

Our businesses supplies well-handled products to the targeted customers.

Project report on juice productionDEC,2023

Dep`t of ACCOUNTING
The following products are supplied to our customers:-

 Koket delicious juice

 Kukis
 Tigreananbasha
 Breads
 Chips
 Others
5.4Industrial Analysis

5.4.1 The Industry

Our industry do not expanded in the sectors but the government policy is clear and convenient concerning
small micro enterprises. In the past small business do not get attention. However currently, special attention is
given. The enterprise has found the legal environment is encouraging and promising.

Description Competition Our price Customer

Service [Br.] [Br.] Benefit
Orange Juice 40.00 38.00 2.00
Banana 32.00 30.00 2.00
Orange 43.00 40.00 3.00
Kukis 12.00 10.00 2.00

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5.5 Marketing Plan

Zema juice producer(we) try to meet our customers demand by setting a fair price, by delivering quality ser-
vice and being excellent provider of the item. Our project growth rate increased by 20%, due to increase of our
customers and existence of good strategic location as well as our smooth relation with users.
5.6 Competitors
Hence, our business is new to the market and to the eyes of the market’s elements, so, we may find ourselves
circumscribed with in the competition. Our main target is providing better service to our customers that is
make the competition worst.

5.7 Competitive advantages

This deals with how we can obtain strategic advantage over our competitors at different time. This is realized
through formulation and implementation of value creating strategy than what other can do. Examples:-

5.7.1 Pricing method

Our enterprise uses a pricing method based on cost benefit analysis of the production material and overhead
costs. The pricing policy applies the following ways.

- Br. 5 per pack for small size

- Br. 7 per pack for medium size
- Br 11 per pack for large size

Project report on juice productionDEC,2023

Dep`t of ACCOUNTING
5.7.2 Advertising method
This project plan attempts to use different advertising techniques according to the targeted markets. Our plan
to provide the service is communicated in the following manners.

- Through business card.

- Package decoration like colorful pack, make portable.
- Different banal on display material and employee cloth or uniform.

5.8 Production Plan

We are likely to produce juices like mango, banana, avocado, orange and others.

Our production plan is as follows.

NO Type Descriptio Unit Quantity Price per Total

n unit cost
1 J Mango Kg 20 60 1,200
2 U Avocado Kg 25 30 750
3 I Banana Kg 15 25 375
4 C Orange Kg 15 40 600
5 E Vento Litter 5 50 250
6 Lemon Kg 2 45 90
7 Ananas Kg 10 40 400

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8 Total 92 290 3665

1 B Floor Kg 50 100 5000

2 R Sugar Kg 50 90 4500
3 E Egg - 150 15 2250
4 A Powder Kg 3 30 90
5 D Spice Kg 4 20 80
Total 257 255 11,920
TOTAL COST=15,585

6. Organizational and technical assessment

6.1 Organizational plan

The Partners have a good educational background to lead the business experiences that will contribute a lot to
what is planned to be achieved. The business experience they accumulate will benefit their business in the
area of handling customers properly and delivering quality product.

The Organizational structure is described as Follows:-

MANAGER

Project report on juice productionDEC,2023

Dep`t of ACCOUNTING

CASHIER STORE
KEEPER

WAITER JUICE
MAKER

The responsibilities of each individuals is described as follows;-

General Manager

 Has the task of controlling the overall activities of the business.

 Ensure Business plan practically implemented and make any correction when the situations become
difficult.
Store keeper

 Has the task of keeping all materials that used for production and for other similar purposes.
Cashier
 Has the task of controlling and managing cash and related activities.
Waiters

Project report on juice productionDEC,2023

 Dep`t of ACCOUNTING
 The responsibility of our waiters is to serve our customers politely, quickly and safely. Because, we give
them training about the service variability service perishability and so forth.
Juice maker
 Has the task to prepare different juices that are ordered by our customers.
 He has also the reasonability to provide the sweet juice in time.
 Cleaners have also the task of cleaning the house and keeping the environment neat.
 Washing materials that have been used for the production purpose.

Current management structure is as follows:-

PROJECT
MANAGER

HR MARKET FINANCIAL SALES PRODUCTI

MANAGE MANAGER MANAGER MANAGER ON
R MANAGER

ACCOUNTAN CASHIER
T

Current technical infrastructure of our organization

Project report on juice productionDEC,2023

Dep`t of ACCOUNTING
This deals with the existence of different distributer and suppliers due to no lack of transportation facilities as well
as good strategic location of our enterprise.

Technology needed and their costs:-

Equipment Quantity Price Total cost

Refrigerator 1 18,000 18,000

Tables 5 1000 5,000

Chairs 10 600 6,000

Shelf 1 800 800

Knifes 10 40 400

Fork 20 30 600

Pulps 2 1,000 2,000

32,800

Project report on juice productionDEC,2023

 Dep`t of ACCOUNTING

[Link] plan

7.1 Sources of finance

The firm is established by equity financing of the partners and creditors. The initial total investment for the
accomplishment of the activity is birr 300,000, Out of which 60% is contributed by the partners and the
remaining 40% is financed by creditors.

7.2 Cost Analysis for Initial Investment

A. Initial cost Cost
- Refrigerator ………………………………………………………….18,000
- Juice machine ………………………………………………………..60,000
- Home rent ………………………………………………………….5,000
- Workers uniform……………………………………………………….4000
- Display Material………………………………………………………8,000
- License Process cost……………………………………………..……4000
Total……………………………………….………………………...……99,000
B. Operational cost
- Material purchase …………………………………………………. 35,000
- Working Capital. ……………………………………………………70,000

Project report on juice productionDEC,2023

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- 1st month Salary Payment…………………………………… 10,000

Total…………………………………………………………………….115,000

Total initial cost………………………………………………………….214,000

NB:-Remaining Br 50,000 will be kept for risk purpose.

[Link] Statement
Our business have good marketing demand with reasonable price in the market. The performed income
statement indicates the possible profit in the consecutive months as well as years.

Project report on juice productionDEC,2023

Dep`t of ACCOUNTING

9. Conclusion

Zema juice production enterprise in general deals with provision of high quality
services and products for our users like fruit juice ,Bread, Ambasha and kukis at
reasonable fair market price .

The revenue generated from sale of products shows significant increment from time
to time at reasonable price. So, our business enterprise will become the well-known
to all customers due to its quality services and high demand for our products
starting from time to establishment. This indicates the longevity of our business
enterprise. Depending on the current market condition and level of sales the
business will continue for a long period of time reasonably.

Generally, this production enterprise contribute a lot for the owner, customer,
worker and community at large through creating job opportunity for workers and
providing quality services for society at low price to attract customers to get
positive advantage over their competitor through formulating of value creating
strategy in our business enterprise.

Project report on juice productionDEC,2023

Dep`t of ACCOUNTING
10. Tables and figures

We try to show tables and figures we use at necessary time in our project body of
study to simplify the difficulty of understanding as much as possible clearly and
preciously.

11. References

- Internet

- Previous business plan

- Our own individual assumption

Project report on juice productionDEC,2023