ADDIS ABABA UNIVERSITY

COLLEGE OF BUISNESS AND ECONOMICS

DEPARTMENT OF MANEGEMENT
PROJECT MANEGEMENT GROUP ASSIGNMENT
SECTION-TWO
Topic: Betoch Fast Food Making and Delivery
Service

Group Members:
NAME:

ID NUMBER:

1. Laychale Yesgate

BER/1243/05

2. Mitiku Zerie

BER/1985/05

3. Kinfemichael Ashebir

BER/1313/05

4. Shambel Birhanu

BER/4589/05

5. Million Ademe

BER/2798/05

6. Kibreab Demissie

BER/2450/05

Submitted to:
Instructor, Fuad Mustefa
Jan, 2015

Table of Contents
Topics

Pages

ACRONOMS................................................................................................................................i
Acknowledgment..................................................................................................................ii
Executive Summary...........................................................................................................iii
1. Introduction........................................................................................................................1
1.1.Background of the project.........................................................................................1
1.2. Objectives of the project...........................................................................................2
1.3.Significance of the project.........................................................................................3
2. Market and demand analysis...................................................................................3
2.1 Market segmentation and targeting.......................................................................4
2.2. Service marketing mix/extended marketing mix.............................................6
2.3. Marketing plan...............................................................................................................9
3. Technical analysis.........................................................................................................16
3.1. The need for the project..........................................................................................16
3.2. Project design..............................................................................................................16
3.2.1. Location and Site Selection............................................................................16
3.2.2. Required material and facilities and design.............................................18
3.2.3. Feasible technology...........................................................................................21
3.2.4. Capacity.................................................................................................................22
3.3.Organizational structure and man power requirement................................23
3.4. Potential impact of the project on environment.............................................24
3.5. Social acceptability of the project........................................................................24
3.6. Potential Impact of the Project on Cross Cutting Issues..............................24
4. Financial analysis..........................................................................................................25
5. Economic Analysis........................................................................................................28
6. Assumption, uncertainty, and risk management strategy..................30
6.1. Considered assumption...........................................................................................30
6.2. Risk analysis.................................................................................................................31
6.3. Design risk mitigation strategy.............................................................................33
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6.4. Considered scenarios for sensitivity and sensibility analysis....................35

7. Project implementation management arrangement...........................36
7.1. Work breakdown structure of the project.........................................................36
7.2. Appropriate professionals for works of projects.............................................39
7.3. Project monitoring, evaluation and reporting mechanism.........................39
7.4. Physical and financial action plan of the project............................................40
7.5. Setting of a project....................................................................................................42
8. Conclusion.........................................................................................................................44
Reference
Appendixes

ACRONOMS
AAU-Addis Ababa University
WBS-Work Breakdown structure
SWOT-Strength, Weakness, Opportunities, and Threats
PESTEL- Political, Economical, Social, Technological, Environmental, and
Legal
SMART- Specific, Measurable, Attainable, Realistic, and Time Bound

Acknowledgment
First of all, we would like to thanks our instructor Mr. Fuad Mustefa, because
of he encourages us about what we must do in this course initiate us to be
hard worker on projects of different affairs that need modern management
and recommendation on appropriate issues. As a result we get some clues to
our future life that what we must do as management students.
Secondly, we would like to thank all interviewee who showed their
willingness to give the information that we required precisely and with full
cooperation.

Executive Summary
Ethiopian people attach great importance to eating. We can know it by the
saying Enjera is the staff of life. Ethiopias dishes highly stress on its color,
aroma, taste, shape and meaning. As a result, many Ethiopians come to
overseas and make their living by opening restaurants, which has become
the fundamental settlement in the world. Similarly, opening various styles of
restaurants in the domestic cities of the appropriate location is a great
business opportunity. Based on this, a great business opportunity is to open a
fast-food delivery, named Betoch Fast Food delivery, in Addis Ababa City.

1. Introduction
The fast food making and delivery service has emerged because the
characteristics of our contemporary society demand the development of new
methods of management of the many forces involved, three are the
following:( 1) the exponential expansion of human knowledge;(2) the
growing demand for a broad range of complex, sophisticated, customized
goods and services; and (3) the evolution of worldwide competitive markets
for the markets, for the production and consumption of goods and services.
All three forces combine to mandate the use of teams to solve problems
that used to be solvable by individuals. First, the expansion of knowledge
allows an increasing number of academic disciplines to be used in solving
problems associated with the development, production, and distribution of
fast food delivery and services. Second, satisfying the continuing demand for
more complex and customized products and services depends on our ability
to make product design an integrated and inherent part of our production
and distribution systems. Third, worldwide market forces us to include
cultural and environmental differences in our managerial decisions about
what, where, when, and how to produce and distribute our food.
To be successful, the transition must be systematic, but it tends to be
slow and tortuous for most enterprises. Another important societal force is
the intense competition among institutions, both profit and not-for profit,
fostered by our economic system resulting in organizational total quality
control. Responses must come faster, decisions must be made sooner, and
results must be occurring more quickly.

1.1.

Background of the project

The project that we propose and apply to the future is to avoid the doubt in
hotels and different restaurant services. Because as we interviewed some
peoples from different sectors and areas they have many doubt of food
1

services in hotels and restaurant quality food and fast service to them. So,
hopefully we think we are avoiding such ambiguities of customers in our
project as can as possible.
When the project we under takes are large and getting larger, our projects
increase in size and complexity because the more we can do, the more we
try to do. We try to command the most public attention tends to be large,
complex, multidisciplinary endeavors to our project.
Vision
-

Being one of the pioneers best companies in delivering food in Ethiopia, able

to develop in each of the employees creative ability to the client.

Deliver an innovative, competitive and a dedicated to the complete
satisfaction of our customers highly productive company, fair to its suppliers
and staff development opportunities treatment also become one of the most
successful in our specialty delivering food, as well as attractive source of
labor.

Mission
-

To serve quality food, always providing an extra ordinary experience

value;
We offer quality, service and cleanliness to our customers;
We are strongly committed to our people;
We aspire to be the recognized leader in the food delivery, committed
to build healthy and safety food service across the Addis Ababa.

1.2. Objectives of the Project

While our project takes multimillion dollar, five year project captures public
attention. It involves outcomes or deliverables, such as a new flour for a
professional basket ball team, a new insurance policy to project against a
specific casualty loss, a new website, a new caring for a four-wheel-drive
minivan transmission, even the development of new software to help
manage projects. There for, the direct project objectives of time cost and
performance or quality have been accepted as the primary determinants of
2

our projects success or failure.

Significance of the project
The potential benefits that this project shows is the identification of
functional responsibilities to ensure that all activities are accounted for,
regardless of personnel turn over without delaying the time and efforts of the
customers and also it allows to the customer to have a menu for their day to
day feeding activities, regardless of this it minimizes the need for continuous
reporting and identification at time limits for scheduling to their ambitions.
Sometime it is difficult to calculate and scheduling menu to oneself because
of not well knowing our confidences when we are going to hotels that the
food is available and are also we are involuntary to order that as we decide.
As a result we thinks that our projects avoid such and other extra
ambiguities with quality and fast deliveries to the customers house on time
and keep the customers need accordingly on their request.

1.3.

Significance of the Project

The potential benefits that this project shows is the identification of

functional responsibilities to ensure that all activities are accounted for,
regardless of personnel turn over without delaying the time and efforts of the
customers and also it allows to the customer to have a menu for their day to
day feeding activities, regardless of this it minimizes the need for continuous
reporting and identification at time limits for scheduling to their ambitions.
Sometime it is difficult to calculate and scheduling menu to oneself because
of not well knowing our confidences when we are going to hotels that the
food is available and are also we are involuntary to order that as we decide.
As a result we thinks that our projects avoid such and other extra
ambiguities with quality and fast deliveries to the customers house on time
and keep the customers need accordingly on their request.

2. Market and demand analysis

Managing the marketing function begins with a complete analysis of the
company situation. the company must analysis its markets and marketing
environment to find attractive opportunities and to avoid environmental
threat. It must analyze company strengths and weaknesses well as current
and possible marketing actions, to determine which opportunities it can best
pursue. Marketing analysis feeds information and other inputs to each of the
other marketing management functions.

2.1 Market segmentation and targeting

It is the process of identifying and profiling distinct group of buyers who
might require separate products or marketing mixes.
Levels of market segmentation
Market segmentation is an effort to increase a company precision marketing.
The starting point of any segmentation discussion is mass marketing. In
mass marketing the seller engages in the mass production, and mass
promotion of one product for all buyers. The argument of mass marketing is
that it creates the largest potential market, which leads to the lowest cost
which in turn can lead to lower prices or higher profits.
1. Segment marketing; it consists of a large identifiable group within
a market with similar wants, purchasing power, geographical
location, buying attitudes or buying habits. Each segments buyers
are assumed to be quite similar in wants and needs, yet no buyers
are rally alike. Segment marketing offers several benefits over
mass marketing. The company can create a more fine-tuned
product or service offering and price it appropriately for the target
customer.

2. Niche marketing: a niche is a more narrowly defined group,

typically a small market whose needs are not well served. Niche
marketers presumably understand their customers needs so well
that the customers willingly pay a premium. An attractive niche is
characterized as follows: The customers in niche have a distinctive
set of needs; they will pay a premium to the firms that best
satisfies their needs; the niche is not likely to attract other
competitors;

the

niches

gains

certain

economies

through

specialization; and the niche has size, profit and growth potential.
3. Local marketing: Target

marketing is leading to marketing

programs being tailored to the needs and wants of local customer

groups.
4. Individual marketing: the ultimate level of segmentation leads to
segments of one customized marketing or one to one marketing.
Mass customization is the ability to prepare on a mass basis
individually designed products and communication to meet each
customer requirements.
Segmenting the consumer market
Dividing the total market into ultimate consumer and business user segment,
results in segments that are still broad and varied for most products. The
customer market may be dividing into further segments using the following
characteristics: geographic, demographic, psychographic and behavioural.
i.

Geographic segmentation: subdividing market into segment

based on geographic distribution the regions, country, and
towns where people live and work is usually used. The reason
for this is simply that consumers wants and products usage
often are related to one or more of these subcategories. Bases
used for segmenting the market geographically included are:
region, city, urban-rural and climate.
5

ii.

Demographic segmentation: in demographic segmentation, the

market is divided into groups on the basis of variables such as
age, family size, family life cycle, gender, income, occupation,
education, race, religion, generation, nationality, social classes.

iii.

Behavioural segmentation: some marketer regularly attempts

to segment their markets on the basis of product related
behaviour they utilize behavioural segmentation. Bases of
behavioural

segmentation

included

are:-

benefit

desired,

occasions, user status, usage rate, loyalty status, buyers

readiness stage and attitude toward products.
iv.

Psychographics segmentation: buyers are divided into different

groups on the bases of lifestyle or personality and values.

Market targeting
It is the process of selecting one or more market segments to enter.
Customer Profiles
The majority of customers of our fast-food delivery are unmarried
employees, university students, and nearby residents of almost all ages.
Students from AAU, who occupy the 35% of the amount.
Unmarried workers from Addis Ababa city, who account for 40% of the
amount.
The rest 25% is nearby residents.
Focus Groups
To get a clearer idea of the views and points of the customers, five focus
groups were organized. The focus groups were as follows:

5
3
4
3
5

employees from AAU

unmarried employees from CBE
teachers
hospital workers
nearby residents

Each of five categories of customers might have different criteria

because of different dietetically demands and also the different age. A basic
list of questions was prepared, but the discussions with each focus group
were allowed to be free and open.

2.2. Service marketing mix/extended marketing mix

Services broadly defined, encompass all economic activities other than
agriculture, manufacturing, and mining. The impact of service can be also
indirect. As countries become more developed economically they also
become more service oriented.
Importance of service
Internationally, the invisible trade is responsible for one-fifth of the value of
world exports. Due to information technology, communication costs will
decline further. As a result, trade in services is very likely to continue to
expand rapidly.
Types of service
There are two major categories of services: consumer and business services.
Business services that are exported consist of numerous and varied types,
including

advertising,

construction

and

engineering,

insurance,

legal

services, data processing and banking. Although service providers must

abide by local laws, they may still want to try to change unfavorable laws or
oppose proposed regulations that can adversely affect business activities.
Marketing mix and adaptation
Services have several unique characteristics; they are intangible, person
oriented, and perishable. Services also require adaptation from time to time
for foreign markets. Service providers usually have more flexibility in
providing services than products because it is more difficult for consumers to
ascertain and compare the quality of services among suppliers. Their prices
7

must still be competitive, especially when the services offered are

standardized.
Price strategy
Some food delivery services keep costs low by delivering on bicycles. You can
identify an appropriate price strategy for a food delivery service with a little
basic market research. The customer's price for goods and services must
cover every cost involved in the delivery to render a true profit. Learning
from the successes and mistakes of other food delivery services can help you
better understand your target consumer. Delivering food at a competitive
price point will position your service as a viable option in the market.
1. Make a detailed list of every bill you must pay to operate the food
delivery service for one year. Include every cost you expect to incur,
such as salaries, equipment, advertising, transportation, fees and
taxes.
2. Total the amounts in the list to reach a cost of business figure, and
increase the total by 10 percent to cover any unexpected costs. This is
the absolute least amount of money the food delivery service must
generate to begin making a profit.
3. Contact other food delivery services in the area and their customers to
research the fee structures that those services are using. Average the
fees from all of the information gathered to determine a mean food
delivery price in the local market.
4. Divide the cost of business figure from step 2 by the average delivery
fee from step 3 to find out how many deliveries the service would need
to make in one year to pay all of the operating costs. Divide the
delivery total by how many days out of the year the business will be
open. For example, if the delivery service costs $30,000 a year and the
8

average fee collected per delivery is $7, then the business would need
to make 4,286 deliveries each year to remain profitable. With only 235
working days in a year, the business would have to make more than 18
deliveries a day.
5. Determine the business' ability to attract sufficient customers at the
price point calculated in step 3 to make the needed daily quota
determined in step 4. In the early stages of a business, you may be
able to attract new customers with a fee structure that is slightly lower
than the competitors'.
6. Set the pricing strategy by balancing the market research with the
operating costs to reach a price that makes your service appealing
without causing it to go broke. Adjustments to the pricing strategy can
be made in the future as you find out about additional costs and
growth opportunities.

Channels of Delivery: General food distributions are often the food

assistance mechanism being implemented on the largest scale. They need
fewer non-food resources and so are more suited to WFPs tonnage based
funding model. General food distribution is usually presented as a relief
intervention with basic life-saving objectives to alleviate immediate hunger
and meet basic needs. In contexts where peoples livelihoods are recovering
general food distributions are also likely to have recovery impacts. By
helping people to meet basic needs, general food distributions can free up
income and enable people to make their own investments in recovery. The
most efficient mechanism for supporting livelihoods recovery in some
contexts, therefore, may simply be continuing to provide general food
9

distributions.
Market entry strategy
Regarding market entry strategies, service firms unique characteristics (for
example,

low

capital

intensity

and

inseparability

of

production

and

consumption) may have some impact on entry-mode choice. In general,

service firms prefers full control modes, but firms with low asset specificity,
in responding to the rising cost of integrate may have to relinquish control
and seek shared control ventures. In practice, service firms can use virtually
all market entry strategies when they are appropriate.

2.3. Marketing plan

It involves deciding on marketing strategies that will help our service delivery
to attain its overall strategic objectives. A detailed marketing plan is needed
for each business, product or brand. It contains the following sections:
executive summary, current marketing situation, threats and opportunities,
objectives and issues, marketing strategies, actions and programs, budgets,
and controls.

Executive summary

The opening section of the marketing plan that presents a short summary of
the main goals and recommendations to be presented in the plan.
The marketing plan outlines an approach to attaining a significant increase
in our service delivery sales and profits. The sales target in our service
delivery is Birr 2,254,500, we think these target is attainable because of the
improved economic, competitive, and distribution picture. The target
operating margins before tax in our service delivery is Birr 650,985. To
10

achieve these goals, the service advertising budget will be Birr 15,000.
Current market situation

The first major section of the plan describes the target market and our
service position in it. In current marketing situation, the planer provides
information about the market, product performance, competition and
distribution is includes a market description that defines the market, includes
major market segments. The planner shows market size, in total and by
segment for the past several years, and then review, customer need and
factors in marketing environment that may affect customer purchasing. Next,
the product review shows sales, prices, and gross margins of the major
products in product line. A section on composition identifies major
competitors, and discusses each of their strategies for product quality,
pricing, distribution and promotion.

Purpose/mission

Opening a fast-food delivery in this high population flow district will be

workable

and

profitable,

because

there

are

appropriate

crowds

of

consumption and the huge development space in this area.

We have collected all the information about what is happening in this
business at present, and also have some information about what customer
might want in the future. We can start to think about what we might do to
improve and expand the business.

Situational analysis
o SWOT Analysis
Strengths

The strengths of Betoch Fast-Food Delivery areas followings.

The boss has operating and management experience in catering
industry, and he is proficient in management staff.
11

The geographical position is superior, and the population flow is very

large.
In ourdelivery, food is various, high quality and inexpensive, suitable for
mass.
The boss who has experiences working in the catering services has the
ability to run this fast food delivery service.
The fast-food delivery is located in the kotebe district where there are lots
of people to use every day, because it is centre to other districts.
We have regular customers. Such as: unmarred workers, teachers,
university students, and worker members, because the fast-food delivery
services.
Weaknesses
The fast-food delivery area is not big enough, and is a bit far away to
deliver everywhere.
The new staffs are not so familiar with the service approaches.
Value added tax invoice is not being issue to customer.
Opportunities

The opportunities in this project are as the followings.

In the first year, we are allowed to have a preferential price on the rent of
the delivery premise.
In the delivery, one has many choices, and can enjoy more different
kinds of food.
In the first year, we are allowed to have a preferential price on the rent of
the shop premise.
The site is located in the delivery centre, the traffic is very convenient.
There is a larger place on that site, so we can have chance to expand our
business.

Threats

12

The following threats may exist if we cannot manage it well:

More and more fast-food restaurant will be opened in this city.
The food prices are rising rapidly recently.
o

Michael porter generic strategy model

Michael porter a Harvard business professor advises from to assess two

factors. Scope of target market and differential advantage, and then choose
an appropriate strategy; the law cost leader in any market gains competitive
advantage from being about to produce at the lowest cost.
Differentiation: - differentiated goods and service satisfy the need of
customers through a sustainable competitive advantage.
Focus of niche strategy: - where an organization can afford neither a valid
scope of cost leadership nor a valid scope of differentiation strategy a niche
strategy could be more suitable. According to Michael porter marketing
strategy we employed the differentiation strategy to penetrate in the market.
According to Michael porter marketing strategy we employed used
Focuses of niche marketing strategy to penetrate and win the competitions.
Her firm focuses on effort and resource on a narrow defined segment of a
market. We can get a competitive advantage spatially for the niche. Defining
a group seeking a distinctive mix benefit. The customer in the niche have a
distinctive seek of needs, they will pay premium to the firms best satisfies
their need; the niche also not likely to attract other competitors; we can win
and gain certain economies through specialization and we can gate profit,
growth potentially and we can expand. We can develop a differentiation
strategy with in the niche segment or focus marketing strategy.
o PEST EL
Is acronym for political, economical, social and technological factors, which
are used to assess the market for business organization units. As PEST
13

factors are essentially external completing a PEST analysis is helpful prior to

completing to the SWOT analysis (strength, weakness, opportunity, and
threats.) is based broadly on half internal and half external factors.
The PEST model like most very good simple concepts has promoted several
variations in them. Every day our market is changing the way it is, May new
things are developed and in matter of about some seconds, the whole
scenario stands different in front of us. Among them there are many things
that we can control and then there are other things that fall beyond our
control.
Systematic things happen in the environment we live in, the environment
that surround us and many times they greatly influence us. Business is also
influenced by environment that are in and all the situational factors that
determine circumstance from day to day. A detailed analysis of the macro
environment or the environment as a whole is called PESTLE analysis which
precisely means birds eye view of the PESTL analysis business conduct.
P- for political factors take in to account the political situation of the country
and the world as whole. For example what sort of government leadership is
affecting what decision of a country? The government policy, tax laws every
tariff of the government levies over our service business fall under these
factors.
E-economical the economic condition, inflation rate, the interest rate, the
monetary or fiscal policy, the foreign exchange also may affect our service
delivery.
S- Social factor every customers have a unique mindset their own demands,
preferances, and behaviors this also affect the service that we delivers. The
coulter implications, the gender and demographic factors, the social lifestyle
these must be studied and analyzed because it affects our business.
T- Technology greatly affects or has influences in business
L- Legal factors
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E- environmental the location of our customer affect our business adding to

that climatic change alter the trade of good and service includes
geographical location, the climate weather, this have little impact on our
business.
Services

We will offer high quality services based on customer requests and

suggestions. The preliminary services are as follows.
We will purchase raw material from the reliable suppliers and make sure
the good quality of diets, and open our material specification to the
customers.
We will keep in touch with clients, and accept their advice happily, and
let them feel at home.
We are opening from 12:30morning to 4:30 night at local time. We can
develop the new dishes according to the users requirement.
Marketing Strategy

SMART Analysis
To achieve a performance of the business, SMART report is very essential
in the planning of a project. SMART stands for specific, measurable,
attainable, realistic and time-bound. SMART analysis of our project is as
follows.
Specific The target of running the Betoch Fast-Food delivery is to offer
good quality diet and takeout service with the lower price and the relieved
food. We are not only doing a business with our customer, but also we make
friends with them. We must treat our customers with honesty. Of course, the
ultimate purpose is to make profit in business.
Measurable our restaurant is located in Addis Ababa district, and will
offer various services to customers, such as ordering a meal, takeaway,
15

online delivery, and so on. We profit 25,000 birr average every day.
Agreed According to my experience and survey, the unmarred, students
and workers want to obtain more convenient and affordable meals, so our
delivery service is to cater for such demand. With the increasing reputation,
more services will be provided and better services will be supplied.
Time-bound Choosing a right place for Betoch Fast-Food delivery service would be
completed in Addis Ababa District in the first days of June. From the second day of
June, it takes me five days to sign a contract of renting house, and another five days
to apply for the business license. And from the third ten days of June, there would
be over 20 days to finish the decorations, shelves, furniture and equipments. Then it
is time to purchase the basic stock. betoch Fast-Food Restaurant will be opening
grandly on July 26th, 2012.

Short run and long run demand projection

Forecasting is the art of estimating future demand by anticipating what
customers are likely to do under a given set of future conditions. All forecasts
are built on one of three information bases: what people say what people do,
and on what people have done. The first bases-what people say involves
surveying the options of customers or those close to them, such as sales
people or outside experts. It includes three methods: survey of customer
intention, composite of sales force opinion and expert opinion. The second
base is building a forecast on what people do involves putting the product
into a test market to assess customer response. The final basis-what people
have done involves analyzing records of past buying behavior or using time
series analysis or statistical demand analysis.
A number of demands are unique to the management of project, and the
success of project management depends to a large extent on how capably
they are handled. In order to meet the demands of the jobs of project
manager-acquiring adequate material, acquiring and motivating personnel,
dealing with obstacle, making project goals trade-offs faller and the risk and
fear of failure and maintaining the appropriate patterns of communication,
16

the project manager must be highly skilled negotiator.

Here we use chain ratio method to forecast how much food we need to
prepare per day to meet our target customers. By applying these methods
we can save money and apply the most marketing method. Example how
much times that we must prepare a meal for our customer?
1. There are roughly 1000 peoples around our site that are available for
delivery. (this is the base number)
2. There are roughly 4 customers per compound in one
house.1000/4=250
3. If averagely we prepare 2 meals per day for each customer per
household. 250*2=500 therefore, we must prepare 500 meals per
day to meet our target customers needs.

3. Technical analysis
3.1. The need for the project
The most and available things that encourage us to lay out this project is to
avoid different customers doubt and ambiguity with different hotels and
restaurants. And also to save the time delay to eat from house to site of the
hotels and during events, it is best to for employees that work full time
within week that, we prepare accordingly their orders with best quality and
quick services.

3.2. Project design

3.2.1. Location and Site Selection
Location
The location greatly affects the success of food delivery However; limited
information is available, even though the importance of site selection has been
highly recognized. In addition, this study will gather opinions from experts for

17

the importance of site selection factors. ). In the extremely competitive retail

environment, even slight differences in location can have a significant impact on
the market share and profitability. Most importantly, since store location is a
long-term fixed investment, the disadvantages of a poor location are difficult to
overcome (Ghosh and McLafferty, 1982). Basic to the success or failure of our
projects are decisions about location. A complete market feasibility study is
undertaken that includes data on overall market, population demographics,
traffic patterns, site size and cost, break-even sales, and competition (Khan,
1992; Khan, 1999). The objective of such a study is to understand market
demographics, conditions, and forecasts; to determine customer driving time
and access; and to chart the purchasing power of the target market area and
the percentage of share of the market that the store can anticipate based on the
competition and its own history and character (Israel, 1994).
We are selecting a suitable location in our projects based upon the following
aspects.
Market and marketing aspects

Availability of raw materials

Size of the plant
Level of urbanization
Population concentration
Environmental impacts and pollution due to garbage out
Availability of transportation facilities, etc.
As a result, accordingly the above points and other availability we have
choose Addis Ababa as a location of our projects.
Site selection
There is no question that proper site selection is critical in most ventures
providing a consumer service or product (McGuire, 1993). By considering the
following criterion we have select, kotebe as site of our projects. These are:-

18

 Local infrastructure at the alternative site

Size and shape of that area
Suitability of future expansion
Traffic patterns and counts
Socio-economic factors ( waste disposal, rent, )
Nature of products produced (perishable)
It is center to deliver, etc.

3.2.2. Required material and facilities and design

The Equipment and Facilities General Requirements provide guidance on the
minimum standards for all food establishment design and equipment.

Refrigerators: All refrigerators intended for the storage of packaged

or unpackaged food must meet the applicable requirements of
customers. Refrigerators for the storage of packaged foods (foods in
sealed containers) must be standard and meet the pre-packaged and
bottled product only standards.

Specialty cabinetry designed and used for the purpose of storing

such items as wine at a reduced temperature, provided there are no
refrigeration components inside the cabinetry and the unit is cooled by
air that is introduced by means of duct work from a remote air
conditioning system, shall meet the materials, design and construction
requirements, where applicable. Wood may be used in conformance.
Final requirements may be based on an evaluation of the unit location
in relationship to the rest of the food service equipment and layout.

All equipment installation will be evaluated using the manual for food
service equipment, as well as health district regulatory requirements.

19

All equipment, other than easily movable equipment, (on casters or

light enough for easy movement), shall be installed with sufficient,
unobstructed space between and behind the equipment to permit
cleaning or be sealed to the wall and adjoining equipment (NOTE:
Special care must be taken with refrigeration and cooking equipment
to allow for proper ventilation).

Equipment placed on tables or counters, unless readily movable

shall be sealed thereto or mounted on legs or feet at least 4 inches
high and so installed as to facilitate cleaning of equipment and areas
adjacent thereto.

Water

stations, ice bins, drink dispensers, sinks and similar

equipment, may not be dropped into plastic laminate counter tops.

Shelving in food preparation, utensil washing areas and walk-in

boxes are to be of approved metal construction. Shelving is to be free
standing or approved by the health district for walk-in boxes and must
be stainless steel, epoxy coated or otherwise impervious to rust or
corrosion. Painted (or otherwise sealed) wood may be acceptable in
separate DRY storage areas only, under certain circumstances with
specific administrative approval.

Storage: Sufficient refrigerated and dry storage for foods must be

provided. Poisonous and toxic materials, cleaning materials and
equipment must be stored separately from foods or food contact items.

Hand Wash Facilities must be conveniently located within all food

preparation areas, including bars. Hand sinks must be adequate in size
and so located as to permit convenient and expeditious use by all
employees. Doors may not be present between the work area and the
hand-sink.
20

Dishwashers must have both a dirty and clean side drain-board

landing of adequate size, and a pre-wash dump sink. Regulations
require these drain boards to be integral to the dishwasher, but may
be adjacent provided they are integrated as a functional unit. All dish
tables and drain boards must drain to the sewer.

Employees' Toilet Facilities which are adequate and conveniently

located shall be provided.

Employee Facilities: Adequate facilities must be provided for orderly

storage of employees clothing and personal belongings.

Janitor Facilities: A mop sink/can wash area must be provided and

serviced with hot and cold running water, for the emptying, filling, and
cleaning mop buckets and mops. Location and installation of mop
sink/can

wash

must

be

made

to

preclude

the

possibility

of

contamination of food and preparation areas.

Lighting: At least 50-foot candles of light are required at a surface

where food handlers are working with FOOD, ware washing, utensils, or
equipment including but not limited to knives, slicers, grinders, or saws
where employee safety is a factor. At least 20 foot-candles of light are
required in all other areas, including dining areas during cleaning
operations, equipment storage areas, dry food storage areas, toilet
rooms, all types of refrigerators, and all other non-food preparation
areas. Light fixtures in the food preparation areas must be shielded.
Special attention should be given to the lighting of areas that may
have light from overhead fixtures blocked from working surfaces.

21

Ventilation: Adequate and sufficient exhaust and fresh air intake

ventilation shall be provided in food preparation areas, food serving
areas.

Garbage Can Areas: Garbage storage areas shall be enclosed and,

where approved by the agency of jurisdiction, be equipped with
adequate drainage to the sewer. Interior or covered garbage can
washing areas shall have a drain to sewer & hot and cold water
available.

Garbage Collectors/Separators such as Salvajor, Somat, and

Hobart, may be directly connected to the sewage system if an air gap
is incorporated into the equipment.

Administrative equipments; such are computer tables chares

House

House: is that uses for our project is not that much very decorated and not
have any second floor but, it must be to some extent wider with surrounding

compound that is enough to perform our project.

Packaging material: this are materials that we use to packed the food for our
customers, in order to show our reliability meaning that the food is free from
any ambiguity for eating, and also on the face of packing material. We try to

promote or advert our brand name as well as functions what we are perform.
Car: as we are delivering the food by carrying to each customer homes. We
must have to use a car to deliver quickly and just in time, not only but also
we need a car for supplying different raw materials to prepare the foods.

3.2.3. Feasible technology

Design specification
The design specification is the first attempt at listing the needs of the
product. It includes:
22

size
shape
shelf life
weight
sensory characteristics (taste, texture, appearance, etc)
costs
ingredients (with quantities)
equipment

Food development
Foods are developed in a number of stages. They need to be tested and
evaluated throughout these stages to ensure they are meeting requirements.
Brief
The first stage of food development is the brief, which is the problem that
needs to be solved. For example, developing a lasagne for health conscious
consumers.
Market research
Market research means finding out information about what people want from
a product. It includes studying market trends and shopping habits. This can
be done by conducting surveys, questionnaires, and telephone interviews.
For example, would people buy a low fat lasagne?

3.2.4. Capacity
Plant capacity is the volume or number of unit that can be produced during a
given period. The capacities that we need to use are investment cost and
market condition:
Investment cost is not affect our project, it depends on the market
conditions because the government are initiate and encouraged the
investors that give service to the society, so he supports financially and give
different incentives according to our project objectives and goals that we
contribute to the society as well as the country at all. Hence, the man power
in our market is cheaper and mostly available, so we can get them easily and
23

sufficiently.
Market condition: Here, we are reminding that the world is globalized and
the market conditions are fluctuating daily, we try to balance and stabilized
our cost accordingly with the market inflation and customer demands to our
food delivery service.
Normal capacity
Type
Cooker

No.
6

capacity
40

daily
240

monthly
7,200

yearly
86,400

Actual capacity
Type

Customer

Average

Average

meal

customer

No.
65

daily

monthly

yearly

130

3,900

46,800

Special event
Total

3,300
50,100

3.3. Organizational structure and man power

requirement

Manager

Accountant

Security and
compound supervisor
Janitor

Purchaser

24

Sheaf

.
Cooker

Deliverer

3.4. Potential impact of the project on environment

There are not high impacts as industry do in this project, but to some extent
there is some waste products that pollute rivers and surrounding villages
with spoiled food smells. However, we can control such things simply by
using store to different peels that are wasted from our projects.

3.5. Social acceptability of the project

hopefully, our projects is acceptable with the society and government as
well, because we are not that much pollute the environment and affect the
society with side effect, even it is related with food we encourages
agricultural product that we need as a raw material for our project and avoid
25

to some extent unemployment within a country.

Due to such and other

many reasons with quality service we think we are being acceptable with the
different social affairs within the country. After the questionnaire survey, we
conclude, almost 90% people are interested in our delivery service, and the
85% people are willing to use to our service, also hope we can provide the
membership to them for future use.

3.6. Potential Impact of the Project on Cross Cutting

Issues
The problem that we think face in our food delivery project is as follows to
some extent:
raw materials are inadequate
unclear goals and directions
The relationship between team members is sometimes
uncommitted.
There may be insufficient planning
Breakdown of communication may face between customers and
managers
May be there is change in goals and resources accordingly the
market conditions
There also may be face conflicts between departments or functions

4. Financial analysis
We will loan birr400,000 from Dashin Bank at 8% interest. We expect to
pay off the debt totally 432,000 within one year.
Rental cost: The house rent would cost birr60,000 in totals to rent each year.
Equipment: The cost of equipment in the food delivery service would be birr
224,100
26

Car

170,000

Computer:

15,000

Refrigerator
Ventilator

5,000
1,500

Telephone

600

Other expense 32,000

Budgets:

The annual increase in the operating budget would be

birr1,464,500
Wages

252,000

Utilities

2,600

Equipment maintenance and replace

2,000

Telephone charge

2,000

Raw material

1,202,400

Other expense

3500

TOTAL COST OF PROJECT

Initial costs:
Equipment

224,100

SUB-TOTAL

224,100

Recurrent cost: Rental

60,000

Operating budget
SUB-TOTAL

1,461,000
1,521,000

Public relations

47549.25 per year

Market research

15,000 per year

Contingency allowance
Loan interest:

5% yearly profit
400,000*8%=32,000

TOTAL COST

432,000

Betoch fast food delivery service annual financial statements

On Dec. 30, betoch fast food delivery service, which provide delivery of fast
food and to give service other special ceremonial program like, wedding,
meeting, conference, birth day, and holy days are delivering food service. On
the begging of the year Jan. betoch invested birr 400,000 loan from dashin
bank on interest of 8% per year, supply equipment 224,000, rent house birr
27

60,000, recvebil in our customer birr 2,254,500. The annual business

activities were as follows:
1. Loan birr 400,000 from dashin bank
2. Paid rent birr 60,000 on cash
3. Equipment (less accumulated depreciation ) birr 192,085
4. Purchasing raw material birr 1,202,400 in cash
5. Advertising expense birr 15,000 in cash
6. Received from customer birr 2,254,500 on cash
7. Paid employee salary birr 254,000
8. Paid utility expense birr2,600
9. Paid the loan birr 400,000
10.
Paid interest ret birr 32,000
11.
Other expense birr 7,500
12.
At the end of the year there is no supply on hand

28

Betoch fast food delivery

Summary of annual balance sheet
On Dec. 30
Transacti

Asset

on

Liabilit
y

Cash

Acc.

Equipm

Supply

Receiva

ent

on hand

Owner
+ equity

ble
1.
2.
3.
4.

40000

40000

0
-60000

0
-60000
192085
1202400

192085
120240
0

5.
6.

-15000
22545

-15000
2254500

7.

00
-

-252000

25200
0
-2600
-

40000

40000
0

10.

0
-32000

11.

-7500

8.
9.

-2600

-32000
-7500

12.

-1202400

120240
Total

18854
00

0
192,05 0
8

2,077,48
5

29

Betoch Fast Food Delivery Service

Income Statement
For the Year Ended
Revenues
2,254,500
Expenses:
Salary expense

252,000

Advertising expense

15,000

Rent expense

60,000

Interest expense

32,000

Depreciation expense

32,015

Raw material

1,202,400

Utility expense

2,600

Miscellaneous expense

7,500
Total expense:

1,603,515
Net income before tax
=650,985

5.Economic Analysis
The study of forces that determine the distribution of scarce resources. It
provides insight in to how markets operate and offers methods for
attempting to predict future behavior in response to events, trends, and
cycles.
Types of economic analysis
1. Cost analysis: provides a complete accounting of the expenses related
to a given policy or program decision. It supply the most basic cost
30

information that both decision maker and practitioners require and forms the
foundation of all other economic analysis.
Direct cost: - like equipment and fringe benefits, in addition to staff salaries.
Indirect costs or overhead: - such as control support services, human
resource.
Future cost: - include wage increases, contributions for increasing pension
and insurance expenses, and other escalating costs.
Capital costs: -including debt service, contingency, professional service.
2. Fiscal impact analysis: is a comprehensive study of all governmental
revenues, expenditures, and savings that will results from the proposed
policy or program. This type of analysis helps policy makers determine
whether a proposed initiative is affordable from a budgetary stand point.
3. Cost-effective analysis: a fiscal impact analysis can help us asses how a
program or policy will affect our budget but it wont tell us whether the
program or policy is an efficient use of resources. To evaluate which program
or policy creates the result we want at the lowest cost, use cost effectiveness
analysis (CEA).
4. Cost benefit analysis (CBA): is a method for comparing the economic
pros and cons of policies and programs to help policy makers identify the
best or most valuable options to pursue.
Note:- Among the four types of economic analysis, CBA is the most
comprehensive. However, it is not always necessary or advisable to conduct
CBA of an intervention, as cost benefit analysis can be difficult and time
consuming to perform.
Type of economic analysis
Cost analysis
Fiscal impact analysis

Information provided
How much
How your budget will be affected
31

Cost-effectiveness analysis

How many outputs you get for your

Cost benefit analysis

dollar or birr
How much benefits

out

weight

costs
Food policy: is the area of public policy concerning how food is produced,
processed, distributed and purchased. It designed to influence the operations
of the food and agriculture system. This often includes decision making
around production and processing techniques, marketing, availability,
utilization and consumption of food in the interest of meeting or furthering
social objectives.
In our project we have three main objectives for food policy:1. To protect the poor from crisis,
2. To develop long run markets that enhance efficient resources use, and
3. To increase food production that will in turn promote an increase in
income.
Economic analysis guidelines are important for:
1. They assist policy methods in developing regulations that achieve the
highest environmental quality and human health standard at the
lowest costs;
2. Provide analysts with information;
3. Develop an overarching framework for economic analysis;
4. Ensures that important subjects such as uncertainty, timing and
valuation of costs and benefits.

6. Assumption, uncertainty, and risk management strategy

6.1. Considered assumption
Because, risk and uncertainty is very wide and basic success or failure to
once project we see its assumptions and strategy in detail.
Risk: the chance that project processes or outcomes will not occur as
planned.
Uncertainty: having only partial or no information about the situation or
32

outcomes, often ambiguity or complexity.

For the most part, risk has been interpreted as being unsure about project
task durations and / or costs, but uncertainty plagues all aspects of the work
on projects and is presented in all stages of project life cycles. The outcome
of any decision depends on two things:
1. What the decision maker does; and
2. What nature does-nature being the set of exogenous factors that
interact with the decision makers course of action to produce an
outcome.
If decision makers know the probability of each and every stage of nature
and we their outcomes, we can find the expected value of each alternatives
course of actions we have. The expected value of a specific action is the sum
of the value of each outcome associated with the action times the probability
that it will occur. We can select the course of action associated with the
beast these expected value. This is decision making under condition of risk.
If our decision makes information is not so complete and we do not know and
cannot collect sufficient data to determine the probability of occurrence. For
some states of nature, we cannot find the expected value for each of our
alternatives actions. This is decision making under condition of uncertainty.
There is no way to solve problems under uncertainty without altering the
nature of the problems. Finally, the decision maker could assume that an
opponent controls the state of nature and try to use game theory solve our
problems of decision making under conditions of conflict.

6.2. Risk analysis

It is a systematic process to estimate the level of risk for identified and
approved risks. Risk analysis begins with a detailed evaluation of the risk
that has been identified and approved by decision makers for further
evaluation. It is important that only approved risks be analyzed to resources
from being expended on issues that may not actually be risks.
Risk analysis is often based on detailed information that may came from a
33

Varity of techniques, including but not limited to:

Analysis of planes and related documents

Comparison with similar documents
Data from engineering or other models
Experience and interviewing
Modelling and simulation
Relevant lessons-learning studies
Result from test and prototype development
Sensitivity analysis of alternative and inputs
Specialists and expert judgments

Risk Analysis and Management Plan

As the saying goes better safe than sorry, prior to implementation of
the project, it is necessary to look at the project from different perspective.
Before putting the plan into practice, we find that the following problems
might affect the successful completion of the project. We presume that the
following three areas are where problems likely occur.
People-related:
The new employees may not be satisfied with the wages.
The new employees may not be good at this job at all.
For a new delivery, people may doubt about the credit of it when they come
to us at the first time.
Time-related:
The newly ordered raw materials may not arrive in time causing delay in the
opening of the new delivery.
Service-related:
The loan may not be obtained from the bank in time.
The new ditches may not cater to the interests of the customer.
We may not be able to purchase the materials at the lowest price from the
supplier. Since it is impossible to eradicate all the risks, the Betoch manager
34

deems he is able to control and manage them. Now, he has thought of tree
measures which are as follows:
Try to avoid the risks, for example, make sure the new staffs could accept the
monthly wage in the interviewing
Carry out market research among target customers to improve the popularity
and the diversity of the.
Monitor the lead time to make sure the materials arrive on time.
Set aside a certain percentage of the total budget as contingency allowance
to take account of the unexpected risk.
Public relations

birr 2,000 per year

Market research

birr15,000 per year

Contingency allowance 5% of the annual profit

Risk analysis and simulation
As we have noted, risk analysis techniques will be introduced when they are
relevant to a problem at hand before proceeding to demonstrate analytic
techniques, however, it is helpful to understand the underling nature of risk
analysis.
Risk identification
The methods for identifying risks are numerous. Common practice is to
classify project risk according to its source, which is typically either
subjective or objective.
Subjective source: experiences based up on knowledgeable experts,
interviews and other data from subject matter experts.
Objective source: recorded experience from past projects and current
project as it proceeds
Lesson learned files
Program documentation evaluations
Current performance data
The risk faced by a project is dependent on the technological nature of the
35

projects, as well as many environments in which the project exist. The most
Common method of risk identification is the following

6.3. Design risk mitigation strategy

In the real world of project management, it has been common to deal with
estimates of task durations, costs etc. as if the information were known with
certainty. On occasions, project task workers arbitrarily cut the project
budget and duration and add to the specifications, there by treating the
problems as a decision under conflict with the boss as an opponent.
In fact, a great majority of all decisions made in course of managing a project
are actually made under conditions of uncertainty. In general, we will adopt
the view that is usually best to act as if decisions were made under
conditions of risk. This will force as to make some estimates about the
probability of various outcomes. If we use appropriate methods for doing
this, we can apply what knowledge we have to solving project decision
problems. We will not always be correct, but we will be doing the best we
can. Such estimates are called subjective probabilities . In the world of
project management, a best guess is always better than no information at
all. Now we can examine some of the effects of uncertainty on our project
selection.
As we noted earlier, there is actually not much uncertainty about whether a
product, service, or process can be developed, but there can be considerable
uncertainty about when it will be developed and at what cost. When we
undertakes this project in which it has little or no recent experience for
example, investment in unfamiliar business, installation of computer network
for delivering

service, in general, there are some distinct areas of

uncertainty.
Typically, we try to reduce such uncertainty by the preparation of and pro
forma documents. Pro forma profit and loss statements and breakeven charts
are examples of such documents. The results, however, are not very
satisfactory unless the amount uncertainty is reflected in the data that going
36

to documents.
Note that; pro forma projected or anticipated, usually applied to financial
data such as balance sheet and income statement.
For example; Types of risk and handling strategy
Financial risk: up-front funding and payback period based upon number of
planes sold.
Risk handling strategy: - funding by life-cycle phase
-continuous financial risk management
-sharing risks with sub contractors
-risk reevaluation based on sales commitments
Market risk: -forecasting customers expectations on cost, configuration, and
amenities based up on a 5-10 year life of a plan.
Risk handling strategy: -Close customer contact and input
-Willingness to custom design per customer
-Develop a base line design that allows for
customization

6.4. Considered scenarios for sensitivity and sensibility

analysis
Sensitivity
The project management needs to sense inter personal conflict on the
project team or between team members and outsiders, in addition to a good,
working set of political antennae. Successful project managements are not
conflict avoiders. They sense conflict early, then confront and deal with it
before the conflict escalates into interdepartmental and intradepartmental
welfare.
Sensitivity analysis: is the study of how the uncertainty in the output of
mathematical model or system can be apportioned to different source of
uncertainty in its inputs.
Sensitivity analysis can be useful for a range of purposes: Testing the robustness of the results a model

37

 Increased understanding of the relationships between input and output

variables in a system or model
Uncertainty reduction
Searching for errors
Model simplifications
Enhancing communications from modellers to decisions makers

Sensitivity analysis: is very useful when attempting to determine the

impact the actual outcome of a particular variable will have if it differs from
what was previously assumed.
Finally, the project management needs a sensitive set of technical sensors. It
is common, unfortunately, for otherwise competent and honest team
members to try to hide their failures. In the pressure-cookers life of the
project, failure is particularly threatening.

7. Project implementation management arrangement

7.1. Work breakdown structure of the project
The successful accomplishments of both contract and corporate objectives
requires a plan that defines all efforts to be expanded, assigns responsibility
of to a specially identified organizational elements, and establishes
schedules and budgets for the accomplishment of the work. The preparation
of this plan is the responsibility of the program manager, who is assisted by
the program team assigned in accordance with program management
system directives. The detailed planning is also established in accordance
with company budgeting policy before contractual efforts are initiated.
In planning a project, the project manager must structure the work into small
elements that are:
Manageable, in that specific authority and responsibility can be assigned.
Independent, or with minimum interfacing with and dependence on other
ongoing elements.
Integrate able so that the total package can be seen
Measurable in terms of progress

38

The first major step in the planning of process, after project requirements
definition is the development of the WBS. The WBS is structured in
accordance with the way the work will be performed and reflects the way in
which project costs and data will be summarized and eventually reported.
Preparation of WBS also considers other areas that require structured data,
such as scheduling, configuration management, contract funding, and
technical performance parameters. The WBS in the single most important
element because it provides a common frame work from which:
The total program can be described as summation of sub divided
elements.
Planning can be performed.
Costs and budgets can be established.
Time, cost and performance can be tracked.
Schedules and status reporting procedures can be established.
Network construction and control planning can be initiated

The WBS acts as a vehicle for breaking the work down into smaller elements,
thus providing a greater probability that every major and minor activities will
be accounted for.
In setting up the work breakdown structure, task should?
Have clearly defined start and end date
Be usable as a communication tool in which results can be compared with
expectation.
Be estimated on a total time duration, not when the task must start or end.
Be structured so that a minimum of project office control and documentation
(that is forms) is necessary.

The preparation of breakdown structure is not easy.WBS is a communication

tool, providing detailed information to different levels of management. If it
does not contain enough levels, the integration of activities may prove
difficult. If too many levels exist, then unproductive time will be made to
have the same number of levels for all projects, tasks and so on. Each major
work elements should be considered by it. For many programs the WBS is
established by the customer.
A WBS is a product-oriented family tree subdivision of the hardware, service,
39

and data required to produce the end product.

Validate time and scheduleApproving total risk and impact of decision making

Validate management coordination

Validate organizational charts

Work packages

WBS

KGN[

Approve work methods and accountability

Fig.1 WBS net work diagram

40

Check the total cost

The WBS can be used to provide the basis for:

The responsibility matrix

Network scheduling
Costing
Risk analysis
Organizational structure
Coordination of objectives
Control

7.2. Appropriate professionals for works of projects

After receipt of contract, some form of authorization is needed before work
can begin, even in the planning stage. Work planning authorization releases
funds (primarily for functional management)so that scheduling ,cost, budget,
and all other types of plans can be prepared prior to the release of
operational cycle funds ,common which here after shall be referred to simply
as work authorization.
Many people contend that if the data in the work authorization documents
are different from what was originally defined in the proposal, the project is
in trouble right at the start. This may not be the case, because most projects
are priced out assuming unlimited resources, where as the hours and birr
in the work authorization documents are based up on limited resources.

7.3.

Project

monitoring,

evaluation

and

reporting

mechanism
Project monitoring: the first step in setting up in any monitoring system is to
identify the key factors to be controlled. Clearly, the project managements
wants to monitor performance, cost, and time but must define precisely
which specific characteristics of performance, cost, and time should be
controlled and then establish exact boundaries with in which control should
be maintained. For example, the number of labor hours used, the number or
extent of engineering changes, the levels of customer satisfaction and
similar items may be worthy on our project. Monitoring of livelihoods
41

recovery has largely focused on outputs and neglected outcomes and

impact. We needs to do more to analyses the impact of food assistance in
relation to its contribution to supporting processes of recovery and peoples
own efforts to build stronger livelihoods. There were some good practice
examples in several of the case study countries where we had made
significant efforts to generate learning around livelihoods issues. There is
also a disconnection between monitoring and evaluation and programming
adjustments. Monitoring data is also too often being collected but not
adequately analyzed or documented, inhibiting learning. To generate better
understanding of recovery outcomes greater use of qualitative approaches is
needed to complement quantitative monitoring.

7.4. Physical and financial action plan of the project

Physical plan
Objectively

Narrative

verifiable

summary

indicators

To improve quality in
Goal or

the area and meet

Staffs and

aim

customer demands

students

for better and wider

opinion

Purpos

1.

e or

services
To
increase
revenues

objecti
ve

Opinion survey
two years after
project
implementation

and

profit

of the Betoch

premises will

figures

Fast-Food

be raised after

delivery

one year

20%

and

30

within 2 years..
profile

and risk

The rent of the

by

raise

information

Financial record

profits

To

Assumptions

Revenue

respectively
2.

Source of

Increased

the

number of

and

customers

improve
42

competitiveness
of

the

Betoch

Fast-Food
delivery.
1.The new
1.Larger premises
Output
s

2.Supply the various

services

to

customers

Existence of
new site
providing
more
information
support and
in regular
service.

Activiti

1.Negotiate

the 1. Set aside

es

rental

the a

of

premises
2.Sign

certain

percentage
contract of the total

with the owner of budget

the delivery place

as

contingency

Observation
delivery service
records

staff members
are competent
and honest
2.The advice
on developing
new dishes is

Project
implementation
diary

correct
1. There are no
interruptions
and delays to
the remodel of
the shop.
2.

The

3.Applyfor individual allowance to

contractor

business

uses

from

license take

Industrialand account

Commercial Bureau
4.

Apply

for

of

the

materials.

tax unexpected

registration from Tax risk.

Bureau.
5.Design
delivery layout
6.

Order

equipments,
furniture
materials.

quality

2.Try

to

new avoid

the

risks,

for

new example,
make

sure

and the

new

staffs could
43

good

accept
7.

Make

the

regulation system of
employee
8.

Decide

on

the

range of diets and

procurement
9.Hire Kitchener and
clerk
Start

training

new staff
11.

Order

new

materials based on
the decision made
before.
12.

Get

the

equipment
furniture

new
and

delivered

and installed.
13.

Get

materials

the

monthly
wage in the
interviewing
3.Carry out
Market
research
among

channel details.

10.

the

new

delivered

and keep it properly.

target
customers
to

improve

the
popularity
and

the

diversity

of

the
services.
4.

Monitor

the

lead

time

to

make

sure

the
materials
arrive

on

time.
Human
Inputs

One sheff, Six cook,

and two deliverer.

Equipment
Dining
Supplies:
Telephone

44

Financial
Birr 400,000

The bank will

as a loan from

be willing to

the Dashin

lend the loan.

Bank

Financial action plan of a project

Pricing process: this activity schedules the development of the WBS and
provides management with two of the three operational necessary for control
of a system or project. The integration of the functional unit into the project
environment or system occurs through the pricing-out of the WBS.

7.5. Setting of a project

Tittle: Fast food making and delivery service
Name: Betoch
Location: Addis Ababa City
Site: Kotebe
Sponsor: Dashin Bank
Date of project: 2015-present
This project investigates how development organizations establish, and act
on priorities in urban, food service. It is motivated by a long standing
observation that the food delivery services engaged in time consuming
response are often unaligned.
Observation and Recommendation
To conclude our project views, as we interviewed some people from different
sectors let us take some of what they recommend to us.
In most hotels and restaurants there are unfair market conditions, meaning
that the quality of food and price listed in the menu is not comparable. There
is also delaying of time to order something and even if when the waiters
comes and as they asked they lists the foods exist in the menu, after that
when we order one of from those listed they goes and come back without it,
because they are not informed as quick as the food was finished. Therefore,
there is information gap between the cashier and servants and all the
employees and managers. Not only this there is also another problems that
exist, such as shortage of soft, foods are not be fresh, there is some mixed
45

constraints with some drinks, like milk, tej, and food like bones and tendons
of oxen that is mixed with siggawott. And also as we ask none of them are
not have menu to their meal, they it. What they act all the time, averagely
most peoples want to it more than 60 Birr per day for their daily meal.
Now, our recommendation according to our observation and responses
gotten from customers is to improve the problem listed above with quality,
quick service, full information and also as possible as we try to develop menu
to their meal according to their needs and wants. Finally, plan to be one of
the well-known food deliverer in Addis Ababa and expand to regional towns.

46

8. Conclusion
Hence, we strongly deem our delivery is able to provide adequate quality
of diets and high-class service to customers. More important, we uphold the
concept of good reputation is the life of business. We have full confidence
that we will win the favor of the customers.
There is no decent fast-food delivery around here. A well-equipped fastfood delivery like ours would attract customers around this area. This plan is
finished after detailed survey and careful consideration. We are sure that it
will be implemented smoothly and it will be a big success. The plan is
reliable, practicable and considerable.
We would like to meet with you at any time this week to discuss this plan and
to be glad to explain the plan in details or to offer any additional information
that you may need.

Reference
Harold Kerzner, phD, project management,5th Edition
Internet
Jack R.Meredith Samuel J. mantel. JR, 3rd Edition and 7thEdition
The primer, John Wiley and sons, Global sensitivity analysis
Principle of marketing, kotler 7th edition

47

Appendixes
The analysis of the business
The Betoch Fast-Food delivery is located between the Megenagna and
Karamara District. In this area, there are many students and workers, who
want to have considerable meals, though there is no decent fast-food
delivery around here.
There are many hotels which focus on the rich man, and they ignore
most of the working class and students. So our fast-food delivery has
enormous business opportunities.
However, our new fast-food delivery is a new service and lock of reputation,
we can draw the new customer's attention in reasonable price, good quality,
and after-sales service, and we can try my best to create a good relationship
as soon as possible.
Questions
1. How often do you visit the fast-food delivery?
2. How do you know the Betoch Fast-Food delivery, by web site, from best
friend, from booklet?
3. What do you think of the prices the fast-food delivery offers?
4. How do you feel each time you visit this delivery?
5. What do you think of the quality of diets the fast-food delivery offers?
6. What do you think of takeaway services if you once have bought?
7. Which kinds of diets in this fast-food delivery is your most favour?
8. What most often disappoints you when you come to the delivery?
9. Do you think the delivery assistants are helpful for you?
10.What additional services would you like to see?
11.Do you have any suggestion to advice?
12.Do you have a menu for your meal?

Complaints
They have few choices when considering buying some their favorites.
The fast-food delivery is not fast enough, when there are lots of people.
1

The waiter service attitude is not good when asked to do so.

Suggestions

We should give more training for new staffs.

Recruit more staffs, and Improve work efficiency.