Development Bank of Ethiopia

Business Plan Preparation Training to SMEs Industry Experts

Venue: Gafat Hotel

Prepared by : Nebiyu Alemayehu &

Yaschilal Siraku
October , 2019

Debre Tabor
October 21-25/2019
 Business Plan

What is a Business Plan?

October 21-25/2019
 Overview of Business Plan

• A Business plan is a necessary tool for all

businesses.
• Just as a home is not built without blueprints
or a movie made without a script, you don’t
start a business without a sound and workable
business plan .
• A business plan lays out the structure and
marketing strategy of a company

October 21-25/2019
 Overview of Business Plan…

• It usually states where you want the company and

explains the setup, staffing needs and, most importantly,
start up costs. The majority of loan companies will ask
to see your business plan before providing funding.

• A simple business plan is thorough but concise and

written in easy-to-understand language.

October 21-25/2019
 Overview of Business Plan…
• A Business Plan is a document in which a business
opportunity, or a business already under way, is
identified, described and analyzed and examining its
technical, economic and financial aspects.
• The Plan develops all of the procedures and strategies
necessary in order to convert the business opportunity
into an actual business project.
• It is an essential tool in order to start up a business
project

October 21-25/2019
 Overview of Business Plan…

• The business plan continues the analysis at a deeper and

more complex level, building on the foundation created
by the feasibility study.
• It provides an answer to simple questions about a new business or
a business already under way

October 21-25/2019
 Question for Discussion

 What are the purpose of a

Business Plan?

October 21-25/2019
 The purpose of a Business Plan

 The purposes of a Business Plan are:-

• To identify, describe and analyze a business
opportunity and/or a business already under way,
• Examining the technical, economical and financial
viability of the business.
• Introducing the business to others: banks, investors,
institutions, public bodies or any other agent involved,
when it comes time to seek cooperation or financial
support of any kind.

October 21-25/2019
 The purpose of a Business Plan...

• Provides economic/financial projections.

• Enhances the monitoring and control of the business

• Introduces an analysis of the supply and demand.

• Reflects the commercial strategy and the marketing policy.

• Identifies the guidelines for the management of human resources.
• Analyzes the key factors of success and the risks of a business.
• For decision-making processes:
• Provide qualitative and quantitative information.

October 21-25/2019
 Question for Discussion

 List and Explain the principles

of Preparing a Business Plan?

October 21-25/2019
 Principles for Developing a Business Plan

• There are some basic principles or

guidelines that should be followed in the
preparation of a business plan and it covers
the basic elements of the plan. These will
be useful in writing a business plan for any
audience. October 21-25/2019
Principles for Developing a Business Plan...

• Easy to Read: The business plan must be well

prepared for easy understanding. The introductory
statement is the most important part because it
summarizes your business in one or two pages.
• The plan must be written in a very simple language so
that it can be understood when people read it.

October 21-25/2019
 Principles for Developing a Business Plan...

• Market Analysis: The market to be served is more

important than the product that will be offered
because investors or customers are primarily
interested in how the market will react and receive the
products and services.

October 21-25/2019
 Principles for Developing a Business Plan...

• Distribution Plan: Be specific about the strategies

that will be used to sell and distribute products or
services, clearly outlining the methods and the cost of
getting the products or services to the ultimate
customers.

October 21-25/2019
 Principles for Developing a Business Plan...

• Business Uniqueness and Competitive Advantages:

This should be highlighted and should explain what
will give your business a competitive advantage in the
marketplace.
• For example, you can state any special attributes, like
patents, copyrights, strategic partners or new
technologies of the company.
October 21-25/2019
 Principles for Developing a Business Plan...

• Management: The strength of the organization’s

management in terms of experience, professional
qualifications and achievements should be emphasized
in the business plan.

October 21-25/2019
 Principles for Developing a Business Plan...

• Projections: Projections on future activities and

performance indicators should be realistic,
credible and substantiated/validated with
plausible assumptions that can be validated.

October 21-25/2019
 Principles for Developing a Business Plan...

 End user in focus:

• Business plans should be designed with the end user in
mind.
• Banker’s or financier’s look for stability, security, cash
flow coverage, and sound returns
• Therefore, the uses of funds should show that funds
invested are adequately secured and cash flows will
their interest and principal payments.

October 21-25/2019
 Question for Discussion

 Define Feasibility Study?

 Explain the difference between feasibility
study and Business Plan?

October 21-25/2019
 Feasibility Study Vs Business Plan

• Feasibility study is an analysis of the viability of an idea.

• Feasibility study focuses on helping answer the essential

question of “should we proceed with the proposed project
idea?” All activities of the study are directed toward helping
answer this question.

• If the feasibility study indicates that your business idea is

sound, the next step is a business plan.

October 21-25/2019
 Difference between Feasibility Study Business Plan

• Feasibility study is conducted before the business plan.

• A business plan is prepared only after the business
venture has been deemed to be feasible.
• If a proposed business venture is considered to be
feasible, a business plan is usually constructed next that
provides a “roadmap” of how the business will be
created and developed.
• The business plan provides the “blueprint” for
project implementation.

October 21-25/2019
Difference between Feasibility Study Business Plan…

• Feasibility study is not a business plan.

• The separate roles of the feasibility study and the
business plan are frequently misunderstood.
• Feasibility study provides an investigating function.
• The business plan provides a planning function.
• The business plan outlines the actions needed to take
the proposal from “idea” to “reality.”

October 21-25/2019
 Difference between Feasibility Study Business Plan…

• A feasibility study aims at finding out the workability and

profitability of a business venture. Even before any
investments are made in a new business venture.
• On the other hand, a business plan is developed once it is
firmly known that a business opportunity indeed exists.
• Simply, it means that a business plan is prepared after a
feasibility study has been conducted.

October 21-25/2019
 Difference between Feasibility Study Business Plan…

• Calculations, analysis and estimated projections

make up a feasibility study while a business plan is
made up of tactics and strategies that need to be
implemented for a business to grow.
• While the feasibility study explores the viability of a
business idea, a business plan deals with business
growth and sustainability
October 21-25/2019
Difference between Feasibility Study Business Plan…

• A feasibility study is a relatively inexpensive way

to safeguard any wastage of further investment
(will it work or won’t it).
• If a project is seen to be feasible from the results
of the study, the next logical step is A business
plan which is designed to “plan” in advance how
a business or project will be started,
implemented and managed

October 21-25/2019
 Difference between Feasibility Study Business Plan…

• Feasibility Study demonstrate to a prospective

project owner or investor that a given concept is
financially viable and whether further study
and/or a business plan is warranted.
• Business Plan is a detailed blueprint for building
a given company. A business plan contains all
that the Feasibility study has plus specific time-
lines, detailed budgets with monthly and seasonal
forecasts
October 21-25/2019
Summary Feasibility Study versus Business Plan

• Feasibility: screening opportunities to decide the

conditions under which you are willing to go forward

• Business Plan: execution plan for implementing the

business

October 21-25/2019
Summary of Feasibility Vs Business Plan…

October 21-25/2019
 Question for Discussion

List and discuss the major

components of a business Plan?

October 21-25/2019
The Structure (Components ) of a Business Plan
• Executive Summary

• Background Information

• Key Successes and Risk factors

• Market Study

• Technical Study

• Organization Structure, Management and Manpower

• Financial Analysis
October 21-25/2019
 Executive Summary
• The executive summary gives an overview of the business plan.
• It should not be more than two pages and contains all the
highlights of the plan that will provide a strong impact to readers
because it may be the first thing investors or stakeholders see about
the business.
• In the summary, the plan should be condensed, interesting and
present the business in its best form because it could be used as an
extract for those who are less interested in the details of the
business or who want to analyze an aspect of the business.
• Explain the fundamentals of the proposed business: what will your
product be, who will be your customers, who are the owners, what
do you think the future holds for your business and your industry?
October 21-25/2019
 Executive Summary...
 Overall, executive summary provides an assessment of:
• The Business,
• Products/Services,
• Industry Analysis and Trends,
• Competition,
• An introduction of the management team that will execute the Business Plan.
• Marketing Plan,
• Income and Assets summary and
• Use of Proceeds Summary (where funds are borrowed).

October 21-25/2019
 Background information-Business overview

• This part of the plan describes the business, its vision,

mission, values, goals, objectives and corporate
strategies.

October 21-25/2019
 Business overview-Vision Statement

• The vision statement is a precise, well-drafted statement

indicating the direction of the business.
• It is an inspiring short and brief statement of what the
business intends to become and to achieve in the future
often stated in competitive terms.
• Serves as the core ideals that remains steady and provide
guidance in decision making
October 21-25/2019
 Examples of Vision Statement

• Apple: “To change the world through technology”

• Ford Motor Company: “To become the world’s leading

consumer company for automotive products and
services”

October 21-25/2019
 Business overview-Mission Statement

• This is a broad statement of the purpose of the business

• It presents the fundamental purpose and long-term aspirations and
gives a justification for the business as well as defines the core
activities and the strategic goals, objectives and priorities of the
business in a very concise manner.
• The purpose of the mission statement is to affirm/confirm the
long-term commitment to achieving its vision, and serves as
reminder to the top management about the purpose of the business
• The mission statement enables the business to communicate its
purpose to both insiders and outsiders

October 21-25/2019
 Examples of Mission Statement

• Shell Petroleum Company: “Its Mission is to

search for oil and produce, refine and market
petroleum and petroleum products throughout the
world”

October 21-25/2019
 Business overview-Core Values

• These are values that reflect the core ideology of

a business entity and are independent of current
industry environment, product life cycle and
management trends.
• They are immutable/consistent event if the
industry changes.
October 21-25/2019
 Examples of Core Values

• Respect for the individual

• Staff development and growth
• Integrity, transparency and accountability
• Professional Excellence
• Continuous improvement
• Pioneering/initiating technology
• Creativity and Innovation
• Empathy/ Kindness.

October 21-25/2019
Background info-Business Goals and Objectives

• Goals:- These are broad business results that the

business is absolutely committed to achieving and are
typically stated in terms of general business intentions
• Such as “becoming the market leader” or “being a low-
cost provider of choice”.
• Goals provide the link between the mission of the
business and its actions and it will ultimately dictate the
choices made by the organization.
October 21-25/2019
 Background information in DBE Context

 Particulars like project history and/or the promoter,

business objective, credit history and status of the
promoter and purpose and amount of loan requested shall
be discussed in this section

October 21-25/2019
 Background information of the Applicant /Promoter

The Applicant
• Name, Address (Region, Zone, Woreda Kebele, H.No, Mobile …)
• Legal Form of Business (Sole Proprietor, Partnership, Corporation,
Private limited Company (PLC))
• Licensing Agency
• License Number
• Licensing Date
• Agency providing commercial registration certificate
• Commercial Registration Number & Date
• TIN of the promoter

October 21-25/2019
 Brief History of the Project/Business

• Type of project

• Project objective
• Capital Structure of Project

• Past Performance of the Project (if expansion)

• Credit Information

• The Loan Amount

October 21-25/2019
 Key Success and Risk Factors

• Summarize key Success factors of a project(Macro Level

Success factors, Sector level Success Factors, Firm Level
Success Factors and the level of risk with its mitigation
mechanisms.

October 21-25/2019
 Key Success & Risk Factors…

 Key Success Factors (KSFs): These are the fundamental issues

that must be available for the business to compete effectively in
the market place. The factors should be specific and they include
the followings:
• Adopting new technologies
• Hiring human resources
• Strategic location
• Distribution channels and marketing strategies
• Government regulation
• Improving services or customer focus
• Enhancing operations towards best practice
October 21-25/2019
Key Success and Risk Factors...

October 21-25/2019
 Market Study

• A general review of the market for the entire

industry, competition, demand and supply
situation, price analysis and marketing strategy of
the project

October 21-25/2019
 Market study is a special stage, usually ranks top in the
sequence of the major components of Business Planning.
 Engineers, Financial Analysts as well as Economists can
only start their job, if the market analyst has finished his part
and has delivered sales forecast & market strategy.
 They rely on the quality of the market analysis

October 21-25/2019
• Demand and sales forecast is subjective and
vague- deals with human behavior, customer
response to taste, smell, and all the properties of
the product.

October 21-25/2019
How to Conduct Market Analysis?

The goal of market Analysis is to reduce the risks associated with making
business decision. It can replace misinformation and assumptions with facts
successful market research consists of four steps; define the objectives,
collect the data, analyze and interpret the data and draw conclusions and act.

Step 1 –Defines the objectives:

The first and most crucial step in market Analysis is defining the objectives
clearly and concisely.
 Market Study…
Some objectives for marketing Analysis may be:

How much potential customers would be willing to pay for the product or
service.
Where potential customers would prefer to purchase the product or service.
Where the customer would expect to learn about such a product or service.
Step 2 – Collecting the Data
i.Gathering data from secondary source: - the most obvious source of
information for the business is data that already exists, or secondary data. This is
usually found in trade magazines, libraries, government agencies, universities, and
the internet. A search in library will often reveal published information on the
industry, competitors, trends in consumer tests and preferences, innovations in the
market.
 Market Study…

ii. Gathering data from primary source: - information that is new is

primary data. Gathering primary data involves a data collection
procedure such as observation, networking, interviewing, focus groups
or experimentation and usually a data collection instrument, such as a
questionnaire, observation, experimentation
Step 3 –Analyzing and Interpreting the Result
Depending on the size of the sample, the business can hand-tabulate
the results or entering them on a computer. The results should be
evaluated and interpreted in response to the study objectives that was
specified in the first step of the study process.
 Market Study…
Step 4 – Draw Conclusion and Acts
This is the final step in marketing analysis. The Business should conclude the study
based on what the data collected and analyzed. And shows what actions are
appropriate for the finding by adding his personal judgment.

Demand Analysis and forecasting

Demand Determination
• Quantified statistical data on the demand situation of a product must be
obtained from reliable statistical sources. There are a few national as well as
international institutions which release such information and data for major
traded commodities.
 Market Study…
 Among these institutions are Central Statistical Authority (CSA),
National Bank of Ethiopia (NBE), Publications of the World Bank, Food
and Agricultural Organization (FAO), etc are also major sources of data for
market analysis.
 Moreover, utilization of Internet facilities and referring available
Sectoral studies in the Bank is also crucial.

In making demand assessment for a given commodity some of

the interrelated economic and social factors which influence
the demand behaviour, have to be considered, if and when
54

possible.
 Market Study…
What was the sales trend in the past? If sales are expected to
increase in the future, is it realistic to expect that trend to continue?
What are the factors that affected the trend in the past and are those
factors expected to change?
1.Estimated demand (apparent consumption)
2.Structure of demand by income group
3.Identify potential customer base, including market research
conducted and survey of potential customers
4.Identify how market penetrating is intended and the rationale
behind
5.Provide rationale behind the main assumptions of forecasting
demand trends, supported by historical data
6.Provide actual performances of similar domestic firms engaged in
the same business
 Market Study…
Demand Forecasting

Based on the foregoing demand analysis, a realistic demand

forecast is to be made for the future project's life span.
Therefore, the following techniques for demand forecasting
may be used.
• The trend Analysis method
• Regression models
• Others
 Market Study…
Supply Analysis
Domestic and foreign supply
o Both the local sources of supply of product or service as well as imported
supply of the same must be assessed from available statistical data and
information.
o Domestic productions in terms of quantity, value, capacity utilization of
domestic firms and trend development have to be compiled and analyzed.
o Imported supply of product must be assessed in terms of quantities as well as
prices so as to make the supply statistics complete and comprehensive.
o Planned supply and total supply trend as well as short term supply behavior
have to be compiled and analyzed.
 Market Study…
Others supply
Other factors which influence both global as well as domestic
markets:-
Availability of material inputs and alternative suppliers
Environmental, health and other restrictions
Skilled human resource availability and wage bill
Proximity/closeness to major markets
Ability to convey products to the market (road transport, airfreight)
Global opportunities & threats
Market prospects of the proposed product or service
The following factors have to be considered in the market analysis of proposed
product or service:-
Market structure (competition, sales territories and distribution systems
available)
Demand/supply comparison, market share, market penetration capacity
(possibility)
Location advantage
Cost advantage (labor, raw materials, etc)
Quality advantage
Supply agreement with customers, if any
 Market Study…
Major Marketing Areas for the Product or Service
A commodity produced by a project may not be marketed at the point/locality/
of production. In the majority of the cases the produce may be transported to
long distances to reach other region even within a country. These regions/ zones
where the product will be potentially marketed must be identified when making
the market assessment. This would, of course, help for the products strategic
market planning.

If commodity produced by a project is to be exported, the importing country

should be identified and known so as to enable to prepare a sound market
planning in the future, or find alternative export market outlet.
 Contents of market analysis, DBE perspectives
i. General Characteristics of the Economy
 Economic potential
 Level of economic welfare and
 Dynamics of economic development
 Production structure
 Existing production structure and
 Trends in these structures
 Foreign trade
 Openness to the outside world
 Specific terms and conditions
 Economic policy
 Level of government support and protection
ii. Product
 Characteristic features of the product
 Availability of substitutes & complementary products
 Consumers differ often markedly in incomes, demographic features, sociological
and psychological features.
 Effective Market Segmentation
 Help to understand better market behavior & response
 Enable the concentration of efforts on promising market segments
 Enable the fine turning of marketing strategy to the needs of target
segments
 Increase total sales, reduce costs and step up profits
October 21-25/2019
iii. Demand Analysis and forecasting
 Demand is the quantity of goods that buyers are ready to purchase at a
specific price in a particular market at a given point of time.
 Critical factor- estimate of the demand for a specific product(s) during
the life span
 Size of Demand is a function of several factors
 Population and income levels
 Development trends
 Price level and tendency
 Income and price elasticity of demand
 Technology
 Availability and prices of substitutes and complementary products, etc
October 21-25/2019
Supply Analysis
 Both the local sources as well as imported supply of the
product must be assessed from available statistical data
and information.
 For domestic supply, analysis should include
 Number of producers
 Production program
 Existing capacity
 Plants under construction
 Capacity utilization
 Market shares
 Production costs
 Technology applied
 Age of equipment
 Location October 21-25/2019
Marketing Env’t (Marketing mix /Strategy)
 Market prospects of the proposed product
 Market structure (competition, sales territories and
distribution systems available)
 Demand/supply comparison, market share, market
penetration capacity (possibility)
 Location, cost, and/or quality advantages
 Supply agreement with customers, if any
 Marketing strategy & arrangements for the Product: -
“4P” of marketing (marketing strategy)

October 21-25/2019
Marketing Env’t (Marketing mix /Strategy)
 Pricing: -
Price level
Regulations for pricing
Payment conditions
Financing conditions

October 21-25/2019
Marketing Environment (Marketing mix /Strategy)
 Product: -
 Production mix
 Product development strategies
 Design and fashion
 Brand name
 General image building
 Packaging
 Labeling service
 Legal aspects (i.e. regulations regarding health and safety)

October 21-25/2019
v. Marketing Env’t (Marketing mix /Strategy)
 Place (Distribution): -
 Distribution Channel
 Logistic (transport, Storage)
 Promotion
 Personal selling
 Advertising
 Publicity
 Sales promotion
 Promotion mix
 Legal aspects
October 21-25/2019
 Market Study- SWOT Analysis

• SWOT analysis is a basic, straightforward model that provides direction and

serves as a basis for market analysis.
• It is assessing an organizations strengths (what an organization can do) and
weaknesses (what an organization cannot do) in addition to opportunities
(potential favourable conditions for an organization) and threats (potential
unfavourable conditions for an organization).
• The SWOT analysis provides information that is helpful in matching the
project's resources and capabilities to the competitive environment in which it
operates.
• SWOT analysis is a tool for institutional appraisal and a brainstorming
exercise in which the representatives of the organization participate fully.

October 21-25/2019
 SWOT Analysis cont…

SWOT stands for:

 Strengths: the positive internal attributes of the organisation/
internal competencies possessed by the organization
 structure and policies of the organization,
 financial soundness,
 knowledge of personnel,
 qualities of facilities, and so on
 Weaknesses: the negative internal attributes of the organisation
 Opportunities: external factors which could improve the organisation’s
prospects
 Threats: external factors which could undermine the organisation’s prospects
October 21-25/2019
71.
 Focuses on
i. Location and site
ii. Engineering and technology
iii. Raw materials and supplies
iv. Environmental impact assessment
v. Implementation schedule
i. Location and Site
 Project location selection- impacts & requirements to be identified
 Natural environment, geophysical conditions and projects requirements
 Ecological impact of the project /EIA/,
 Socio – economic policies, incentives and restriction, and government
plans and polices
 Infrastructure services, conditions & requirements- accessibility

October 21-25/2019
i. Location and Site
 Project site selection- requirements and conditions to be
assessed
 Ecological conditions- soil, site hazards, climate etc.
 Env’tal impact- restrictions, standards, guidelines
 Socio-economic conditions- restrictions, incentives,
requirements
 Infrastructure- existing industrial infrastructure, economic and
social infrastructure, availability of critical project inputs such as
labor and factory supplies
 Strategic aspects- corporate strategies about possible future
extension, supply and marketing policies
 Cost of land
October 21-25/2019
 Site preparation and development, requirements and costs
ii. Engineering and Technology
 The task of engineering is to
 Design the functional and physical layout for the machinery
and equipment necessary to produce the defined products
(output), and
 Determine the corresponding investment expenditures as well
as the costs arising during the operational phase.
 Machinery and equipment must be determined in relation to
 The technology to be utilized,
 Local condition,
 Human capabilities, and
 The implication in terms of costs, use of local raw materials,
environmental impact & other factors. October 21-25/2019
 Selection of Machinery and Equipment could be influenced by
 Plant capacity and technological processes
 Infrastructural constraints (the availability of electric power for
a large electric furnace, the transport of heavy equipments to
remote area)
 The length of time required for training (highly sophisticated
equipment)
 Investment constraints and the availability of foreign exchange
 Maintenance requirements and the availability of maintenance
facilities
 Government polices such as import controls (restrict the import
of certain types of equipments)

October 21-25/2019
 Common mistakes during technology evaluation and
selection
 Choice of technology which already is or is going to
become obsolete/outdated in the near future
 Choice of the new version of existing technology not
sufficiently proved and tested.
 Adoption of technology incompatible with the local
conditions (climate, special raw material, properties,
local personnel qualifications)
 Under estimation of environmental hazards.
 What are the common project engineering elements?
October 21-25/2019
 Building and Civil Works cover
 Site preparation and development
 Factory and other buildings
 Civil engineering works relating to utilities, transport,
emissions and effluent discharge, internal roads,
fencing and security, and other facilities and
requirements of the plant.
 All required building and civil works should be
incorporated- factory hall, warehouse, workshop,
administrative office, shower and toilet, guard house,
fence, internal access road, etc.
October 21-25/2019
 Machinery and Equipment
 Types of machinery and equipment to be installed,
and technology proposed with detail specification
 Justification for selection of technology and country
of origin
 Auxiliary equipment, spare parts, etc
 Proven reliability of plant processes and equipment
(will produce the quantity and quality of products
specified on a continuity and dependable basis)
 Theoretical and planned capacity must be specified
and quantified
October 21-25/2019
 Vehicles
 Required type and number of vehicles
 Appropriate justification for selection
 Specific use- raw material and finished product transport,
employees service transport, etc
 Generator
 Could be sole or alternative source of power
 To overcome problem related with frequent power interruption
 Office Furniture and Equipments
 For smooth operation
 Utilities
 Power- could be hydro electric power or generator
 Water- could be tab or borehole water
October 21-25/2019
 Production Process
 Details of production process
 System of production
 Process flow charts
 Material and energy balance
 Plant Capacity and Capacity Utilization Rate
 Plant capacity- the potential output which could be produced
 Capacity Utilization- is the extent to which a plant actually uses
its installed productive capacity.
 Capacity Utilization Rate- the ratio between true output- what
is actually produced, and potential output, what could be
produced.
October 21-25/2019
 Factors affecting determination of plant capacity

 Market demand for the product/service

 Amount of capital that can invested
 Product design,
 Process technology
 Product life cycle,
 Efficiency and productivity of the firm, etc
October 21-25/2019
iii. Raw Materials and Inputs
 Identification of required raw materials
 Input/output ratio
 Source of raw materials: - foreign and/or local
 Packing materials : - foreign and/or local

October 21-25/2019
iv. Environmental Impact Assessment
 The impact of the project during implementation & operation
should be analyzed
 Mitigation measures & recommendations

V. Implementation Schedule
 All major activities should be identified
 Required period for each identified major activities should be
allocated
 Proper arrangement
 Organization is the means by which:-
 The operational functions and activities of the
enterprise are structured and assigned to
organizational units,
 Represented by managerial staff, supervisors
and work force,
 Delegation of responsibilities to the various
functional units.
 To coordinate and control the performance of
the enterprise & achieve its business targets.
 Organizational Structure- Development and design

 Needed to manage and control the entire operation

 Usually designed primarily in line with the functions
in the enterprise
 Closely related with project engineering
 Decisive for the financial analysis
 No unique organization pattern.
 Organization Structure
 Can take number of shape
 The most common is pyramid shape
 Three organizational level
• Top, middle & supervisor management
 Organization design- depends on internal and external
project requirements and conditions, usually includes the
following steps.
 The goals & objective for the business are stated
 Functions necessary to achieve the goals
 Group or relate the necessary functions
 The organizational structure is designed
 All key jobs are analyzed, designed and described
 A recruiting and training program is prepared
Figure : Sample organization structure
 GENERAL
MANAGER

Administration & Finance

Farm Department Marketing Manager
Department

Production Sales Administration

Department Department

Protection Purchase Finance

Department Department

Technical &
Engineering
Department
 GENERAL
MANAGER

Administration & Finance

Farm Department Marketing Manager
Department

Production Sales Administration

Department Department

Protection Purchase Finance

Department Department

Technical &
Engineering
Department
 Assess
 Availability of skilled human resources
 Wages and salaries and fringe benefits
 Health care and social security
 Occupational safety
 Training needs
 Focus Area
 General Manager
 Project Manager
 HR requirement and its related costs
 Prepare a business plan by
selecting a project using the major
components of a business plan
October 21-25/2019
October 21-25/2019