THE FEDERAL POLYTECHNIC BAUCHI

DEVELOP/PROPOSE A BUSINESS THAT WILL IN THE LONG RUN

REPLACE OR IMPROVE A BUSINESS ENTITY/ACTIVITY TOWARDS
SUSTAINABLE DEVELOPMENT

MANAGEMENT OF DEVELOPMENT (BAM 323) ASSIGNMENT

PRESENTED

BY

DORCAS ADEKUNLE 17/122076

HND IA BAM

SUMBITTED TO

DR. SADEEQ LAUNI

NOVEMBER, 2018

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 BUSINESS PLAN/PROPOSAL ON AUTOMOBILE CARE SERVICES

Swift Auto Care is a start-up organization whose vision is to create the finest
automobile care services for car owners who want to maintain and service their
cars regularly. The services to be offered by the company have been designed and
created by a well experienced and informed veteran with several years in the
automobile industry, to meet the needs of all customer segments. Fault detection,
repairs, scanning and other associated auto care services will be done by the use of
computer assisted devices for reliability and improved service delivery. The Auto
Care service center will be strategically located along Jos Road in Bauchi
metropolis.

Future expansion will enable the company to go in to other services such as; driving
training, general automobile consultancy services, solar energy installation services,
skills acquisition in Auto mechanics and allied technical services, automobile repairs
and car hire services.

Our current face-to-face customer service will be made excellent, which will
potential customers to make active contact with our organization to learn about us.
New business clients will come from referrals from current satisfied customers.
Referral process will be made easier, by encouraging existing customers to point out
our services to their friends, colleagues, neighbours and family members, there by
building familiarity with our company long before they need emergency auto care
services or consider buying another car. The advice that we will give to our
customers will be crucial in establishing customers' trust in our expertise, as well as
our affiliation with nationally-syndicated car experts.

By helping local customers help themselves, Swift Automobile Care service hopes
to build trust and relationships with existing and potential customers.

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1.1 Mission

Our mission at Swift Automobile Care service will be to always perform the highest
quality work at the best price around.

 We will achieve this by only using the best of everything to do automobile

care and services.
 We shall produce high-quality work using the best parts and supplies available
in the market place today.
 We shall only employ the most knowledgeable people to work for our shop.
 All of our technicians will be made to go through a rigorous application
process before we hire them. Only the best hands will be employed to do our
work.

1.2 Keys to Success

Keys to success for the company will include:

1. Maintaining an untarnished reputation in the community.

2. Quality care.
3. Competitive pricing.
4. Flexible hours.

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 1.3 Objectives

Within the next twelve months it is the objective of the company to promote our
business in Bauchi metropolis and the nearby local governments and states. Our
market segment will cover all categories of car owners namely the young, old, male
and female. After two years there will be plan to expand our business to adjoining
towns and Local Government areas such as Azare, Dass, Bogoro, Ganjuwa, Toro,
e.t.c. Our studies indicate that these areas do not have a lot of competition for our
business.
1.4 Company Summary

Swift Automobile Care services will be engaged in auto mechanics skills acquisition,
driving training, general automobile consultancy services.

Swift Automobile Care will be best suited to serving the high-end customer share of
the auto care market because clients of automobile maintenance will be able to
afford the services offered by the company.

2.0 Company Ownership

The company, Swift Automobile Care Services, will be registered in Bauchi State
Nigeria, owned by Mrs. Dorcas Adekunle.

2.1 Start-up Summary

The company founder, Mrs. Dorcas Adekunle, will manage day-to-day operations
of the business and will work collaboratively with all employees to ensure that this
business venture is a success.

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It is estimated that the start-up costs will include, the purchase of modern automobile
diagnostic equipment, advertising, and utilities, and related expenses. An additional
amount will be required as start-up assets, including heavy equipment and cash on
hand. The owner's existing tools comprise part of the current assets. Total Start-up
Requirements are detailed below.

Some of the heavy equipment long-term assets that will be acquired include:

 Air Compressor System

 Hydraulic Jack (6 Tonnes)
 Hydraulic Jack (3 Tonnes)
 Crane (2 Tonnes)
 Computerized Engine Diagnostic Equipment(Launch X-431 IV)
 Complete tools box
 Oil extractor
 Hand scanner ( 3 units)
 Hand Tools
 Jigs and Work Stands (6 Tonnes -4 units 3 Tonnes -4 units)
 Auto Hand Tools
 Radiator kit pressure tester
 Fuel pump pressure tester
 Engine compressor tester
 Oil filter wrench box
 Fuel injector cleaner
 Service pit

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Start-up Requirements
Workshop
N2,193,500
equipment/tools
Start-up Expenses N100,000
LogoDesign Artwork N10,000
Stationery etc. N15,000
Lap computer N70,000
Printer N30,000
Sales Literature N10,000
Utilities N20,000
Office Furniture N60,000
Fixtures N30,000
Service pit N75,000
Total Requirements 2,613,500

2.2 Products and Services

Swift Automobile Care Services will sell classic automobile care services to the
general public at a shop rate of N6,500 for complete engine check and N500 for
engine lubrication service. This will include the labour charge for the replacement
of damaged engine components. The company will specialize in all brand of cars.
The average time taken for engine check for fault detection and lubrication service
will take 1 hour and 30 minutes respectively. However charges and time may vary
due to customers’ preference and the availability of engine components to be
replaced.

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2.3 Market Analysis Summary
2.3.1 TARGET MARKET

All categories of car owners in Bauchi metropolis and environs who are desirous of
efficient and reliable automobile engine care and services will constitute the target
customers of the company. The services offered by the company will be tailored
towards the affordability of high income, middle and low income earners in Bauchi
State.

The customers who Swift Automobile Care Services plans to target want:

1. Quality and reliable engine fault diagnosis, repairs and lubrication service.
2. Timely completion of the work on their cars.
3. Competitive rates.
4. Close attention to detail, and commitment to quality.
5. Ability to offer ideas for alternatives and close customer services.

Swift Automobile Care Services has the ability to meet all these demands. The owner
has a long work history in this field, and has extremely high standards in regards to
the shop's work. The owner and the foreman will make sure that the shop's
employees meet these standards. The owner also understands that, not only quality
work, but the attention and care bestowed on the customer and their cars will result
in a good reputation.

2.4 LOCATION

There is no specific geographical location for potential customers. They are located
all over Bauchi State and its environs. They will send their cars to whom and where
they feel will do the best job, based on reputation. This reputation comes largely

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from "word of mouth", i.e. seeing the quality of automobile engine services carried
out by Swift Automobile Care Services, and referrals by others in the business. We
feel that eventually more than 50% of Swift Automobile Care Services customers
will come from within Bauchi state.

2.5 COMPETITION

Swift Automobile Care Services seeks to establish a competitive edge in its new
target market segment by increasing the level of customer contact and service that
other competitors seem to often times lack. Additionally, the company possesses the
necessary skills to produce the high quality restorations that are needed in this field.
The establishment of the previously mentioned work processes that will ensure
greater service will strengthen the contacts that promote word-of-mouth marketing
and networking.

Our competitive edge will come from hard work and customer satisfaction, we will
only produce top quality work that is show ready when it leaves the shop. This will
spawn good word of mouth, which will in turn generate work from past and present
customers of our shop.

There are no companies in Bauchi metropolis that offer automobile care services
through the use of modern automobile diagnostic equipment. Most of the companies
in Bauchi only offer lubrication engine service and engine repairs through manual
checks. Swift Automobile Care Services will therefore provide services that will
attract the majority of customers in the state without competition.

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2.6 PRICING

Swift Automobile Care Services labour rates will be N6, 500 for complete engine
check and N500 for engine lubrication service. However other automobile shops in
the state do not have a stipulated rate due to the unavailability of modern engine
diagnostic equipment and tools that will attract prospective customers. Swift
Automobile Care Services feels that this is a competitive rate and will not impact the
bottom line in a negative manner.

2.7 ADVERTISING

Swift Automobile Care Services will have a modest program of marketing its
services that will include the following:

1. Flyers
2. Discounts
3. Newspaper and magazines ads
4. Press releases and magazines articles
5. Local radio stations
6. Website
7. Calendars

Each of these marketing approaches has the advantage of being low cost and creating
service awareness. The company is also considering the possibility of having a grand
opening program that would feature discounts, food, a local radio disc jockey and
other promotional ideas.

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3.0 Marketing Strategy

The various marketing programs identified above will be implemented and

vigorously pursued. The marketing strategy for the website itself will involve
mailing fliers to all existing customers in our database, as well as to nearby
neighbours and businesses. The fliers will include a special discount for first and
regular customers.

3.1 Sales Strategy

Swift Automobile Care Services will close the sale by always putting our best face
forward. Employees will be thoroughly trained in customer service, the facilities will
be attractive and clean, and estimates for repair work will be prepared promptly. A
customer who is not suffering an immediate emergency will "shop around" until he
finds a shop that feels trustworthy - it is our job to earn that trust in every encounter
and contract.

3.1.1 Sales Forecast

The Standard sales forecast for the business in the first six months is shown in the
table below. The forecast is based on the projection of the fact that the number of
cars for engine check/repairs and lubrication service increases from 3 in the first
month to 9 in the sixth month.

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 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Engine N468,000 N624,000 N780,000 N936,000 N1,092,000 N1,248,000

check/repairs

Engine N36,000 N48,000 N60,000 N72,000 N84,000 N96,000

lubrication
service
Total Sales N504,000 N672,000 N840,000 N1,008,000 N1,176,000 N1,344,000

4.1 Management Summary

The workforce of the company will be made up of four employees viz; two

technicians whose responsibilities will be to carry out general repairs and service of

automobiles, a secretary who will carry out general administrative duties of the

company, a security guard whose job is to ensure the safety of all equipment and

cars in the garage. However, the company will hire new people as the volume of

work demands.

5.1 Personnel Plan

All repair and service work is will be done by technicians. All employees will put in
full 45 hours per week. Additional technicians will be added where necessary and in
line with success in penetrating the plan's target market. By the end of August 2017,
it is assumed that increased business volume will require more technicians to put in
a full 45 hours per week. By the end 2017, Sal Automedics will have
five technicians working full-time. It is assumed that a sixth tech will be added in

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either first quarter or second quarter of 2018 depending on demand volume. The
table below shows the detailed personnel plan.

Month1 Month2 Month3 Month4 Month5 Month6

Owner N30,000 N40,000 N50,000 N60,000 N70,000 N80,000

Technicians(2) N44,000 N48,000 N52,000 N56,000 N60,000 N64,000

Admin
N22,000 N20,000 N22,000 N24,000 N26,000 N28,000 N30,000
assistant (1)
Security N15,000 N16,000 N17,000 N18,000 N19,000 N20,000
guard(1)
Total people 5 5 5 5 5 5

Total payroll N109,000 N126,000 N143,000 N160,000 N177,000 N194,000

6.0 CONTRIBUTIONS OF SWIFT AUTOMOBILE CARE SERVICES TO

SUSTAINABLE DEVELOPMENT

The Automobile Care Services if implemented will lead to sustainable development

of the society, thereby raising of the standard of living of the people, and the

development of the economy. The following sustainable development can be

achieved following the implementation of this business;

1. The business will help in the effective distribution of enhanced and effective

automobile care services in the entire economy.

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2. The business will help to reduce the level of unemployment in the country. If

the business becomes fully fledged after two years, it will create jobs for

between 10 and 15 persons.

3. The automobile care service will render direct and personal services to the

generality of the people.

4. The business will serve as an agent of change and can easily adapt to changes.

5. Since the business is small in size, so the owner will try to put more effort to

improve their skills to attract more customers. The promotion of this type of

business in the country can assist in providing a lasting solution to the current

problem of spatial imbalance in the distribution of industries between the rural

and urban areas and thus check the rural-urban migration which is heightening

social tension in the big cities.

6. The business if implemented will also serve as sources of revenue generation

in the location of operation as the owner will pay tax based on the size volume

and nature of the business.

7. The establishment of this business will lead to upward growth of the Gross

Domestic Product (GDP), National Income and Per-capita Income thereby

bringing an increase in the average standard of living of the people.

8. The existence and operation of this business will make it possible to produce

goods that are locally manufactured instead of obtaining such good from

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 foreign countries. This saves Nigeria the foreign exchange that would have

been spent in acquiring such goods from abroad.

9. The operation of this business will challenge the large establishments in

several ways causing the large concerns to sit up and become more efficient

and more responsive to customer needs.

10. The small scale enterprises also encourage technical innovation. More than

half of the major technological innovations in the nation originated from

individual investors and small business in Nigeria as well as in many developing

nations. This is because economic growth and development depend largely on

the advancement of technology.

CONCLUSION

The Automobile Care and service business is undoubtedly an essential agent

of economic growth and national development. The activities of the business

will affect the life of the rural and urban dwellers through the employment

opportunities it will provide to the generality of the people of Nigeria. More

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importantly, it will help to engage large number of applicants because the

business will employ both unskilled and semi-skilled individuals. .

Because people engaged to work earn money, they can acquire goods and

services to better their lives and thus there is general rise in the standard of

living. There is the common saying that “The idle mind is the Devil’s

Workshop”. The presence of the business and the provision of jobs to

unemployed people keep the idle mind busy thinking and doing the job

assigned to the individual. For this reason, there is no room to think evil, like

engaging in armed robbery, taking part in cheating gullible masses and

carrying out 419 operations. Thus the society is, a bit, at peace due to the

actions and activities of the business.

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