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The Company was incorporated in Ghana under the Companys Code 1963 (Act 179) as a limited liability company on the 10th March, 2011 to deal in the purchasing of cocoa. The Company was to commence business on the 11th March, 2011 but requires the final license to participate in the internal marketing of cocoa in Ghana. This Presentation therefore is the companys business plan/feasibility which sets out the state of preparedness to participate in the internal market of cocoa.
Global Buyers Limited seeks to participate in the internal marketing of cocoa with an initial purchase of 3,000 tonnes and gradually increase to 15,188 tonnes in the fifth year. In order to achieve this feat, the company will operate efficiently and effectively in order to gain a reasonable share of the internal cocoa market. Also, qualified human resources with excellent public relations will be employed to facilitate the objective of capturing a sizeable share of the market.
The company will also offer attractive incentive packages such as supply of agrochemicals on credit to motivate cocoa farmers sell their cocoa to the company.
Organisational Structure
Board of Directors
Managing Director
MDs Secretary
Finance Manager
Operations Manager
Accountant
Admin. Officer
Audit Officer
Area Mangers
Accounts Officers
Accounts Department
Secretary
Port Officers
Marketing Clerks
The company will be headed by a Managing Director who will report to a Board of Directors. Two Managers in charge of Purchasing and Operations as well as Finance and Administration will support the Managing Director.
Organisational Structure
MARKETING PLAN
Product Positioning :
Global Buyers Limited will deal exclusively in thoroughly dried cocoa beans Ghana
Cocoa Beans will be purchased directly from farmers and will be bagged in 64kg bag.
The company, in its effort to differentiate its product, all cocoa purchased will be guaranteed good quality. Farmers will be encouraged to adhere to environmentally sound farming practices. The company will buy high quality cocoa, exhibit professionalism in its dealings, adhere to business ethics and be reliable to its farmers.
Marketing Plan
Strategy :
The marketing strategy will be to pay farmers producer price determined by the Producer Price Review Committee (PPRC) and provide incentives to improve productivity. Global Buyers Limited would create awareness about its existence through the use of billboards and in the long term create farmer loyalty. The company will ensure that good quality and thoroughly dried cocoa beans are bought from farmers. This objective is to position the company among the best buyers of high quality cocoa and create customer awareness regarding services offered as well as developing a solid customer base with farmers.
Marketing Mix :
In terms of pricing the farmers will be paid the PRODUCER PRICE set by the PRODUCER PRICE REVIEW COMMITTEE and announced by COCOBOD. Purchasing clerks will purchase thoroughly dried cocoa from farmers and ensure prompt payment to the farmers. There will also be a mixture of advertisements and local networking to attract farmers to sell their produce to our firm. It is also the philosophy of the firm to make farmers satisfied with their services rendered to them.
Marketing Plan
Marketing Research :
Consultations have been carried out during
Marketing Plan
Marketing Plan
OPERATIONAL STRATEGY
Areas of Operation :
The companys head office will be in Accra, with an operational office in Kumasi.
The company will however, begin operating in thirteen (13) districts, spanning four (4) regions in Ashanti, Central, Western North and Western South.
Each district will operate in an average of eleven (11) to twenty-six (26) societies. The company will also operate three (3) discrepant sheds to handle its discrepant cocoa in the following areas: Tema, Kaase and Takoradi
OPERATIONAL STRATEGY
The company will expand its operations into other regions and districts in later years as indicated below. Brong Ahafo Region : Goaso, Sankore and Kasapin Eastern Region : Akim Oda, Nkawkaw and Asamankese.
OPERATIONAL STRATEGY
Quality of Cocoa :
The Company will ensure that cocoa purchased are promptly graded and sealed by the Quality Control Division (QCD) of COCOBOD. Various sizes of sieves will be acquired to enable the easy categorization of cocoa beans purchased into various bean sizes as stipulated by QCD. Graded cocoa will be quickly moved from the Companys depots to the appropriate take-over points as may be assigned from time to time. Any other arrangement put in place to ensure the smooth grading and sealing and subsequent evacuation of cocoa will be strictly adhered to by the Company.
OPERATIONAL STRATEGY
Negotiations have been completed with some landlords of the sheds with cases of commitment fees paid in some cases. We are satisfied that these facilities can guarantee the preservation of the cocoa stored before being evacuated.
The Company in the long-run will build its own sheds in the various districts. It will be ensured that warehousing facilities are adequately disinfested to meet the Quality Control Division (QCD) of COCOBODs required standard. District Managers and Depot keepers have been recruited and currently undergoing field training. OPERATIONAL
STRATEGY
Cocoa Evacuation :
The Company will ensure that cocoa graded and sealed are promptly evacuated to the designated take-over In this regard services of private hauliers will be used for both primary and secondary evacuation. The Company will act in accordance with any special evacuation arrangement put in place by the regulators to facilitate the smooth evacuation of cocoa to the take-over centres. The Company plans to acquire its own vehicles, particularly light trucks for primary evacuation.
OPERATIONAL STRATEGY
OPERATIONAL STRATEGY
FINANCIAL ANALYSIS
Financial Objectives :
The company intends to be established as a Licensed Buying Company (LBC) in the internal cocoa marketing arrangement. Seed money in the purchasing of cocoa would have a turn around ratio of 2.2. The company will borrow 80% of its initial capital requirements from the financial institutions and will increase its return on investment.
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
6000
5000
3000
1000
Projected Purchases :
The company projects to purchase 3,000 tonnes in our first year of operation
This will gradually increase it to 15,188 tonnes by the end of the fifth year.
Notes on Purchases Forecast: Forecasts from 2012/13 to 2016/17 have been made on the assumption that there would be 50% increase over the preceding years volume of purchase.
The assumed rate of increase is based on the fact that the company would have been growing in terms of financial and logistic resources to permeate more areas of operations.
FINANCIAL ANALYSIS
3,280
3,936
4,330
4,763
5,239
343
514
617
740
888
1,027,650 2,312,213
4,161,983
7,491,569
13,484,823
Revenues will accrue from margins earned by delivering cocoa to the Cocoa Marketing Company (Gh.) Limited (CMC) and is projected to reach GH13,484,823 in 2016/17 from an initial level of GH1,027,650 in 2012/13. FINANCIAL
ANALYSIS
Capital expenditure will increase by 10% of the net value from year two (2) to year five (5).
Interest on bank overdraft is 24% per annum. Depreciation rate for all assets is 20% per annum.
FINANCIAL ANALYSIS
Logistics Requirements :
To ensure that the Companys projected levels of cocoa purchases are met, the following levels of inputs will be acquired initially. However, these levels of inputs will increase as our purchases increase over the years:ITEM Scales (units) Jute Sacks (bales) Jute Twine (bales) Tarpaulin (units) Gratings (units) Wooden Shovel (units) Sieves (units) QUANTITIES 120 160 8 200 400 120 120
CONCLUSION
CONCLUSION :
It is acknowledged that GLOBAL BUYERS LIMITED is prepared to participate in the Internal Marketing of Cocoa in Ghana during the 2012/13 crop year. The project is technically and financially feasible and economically viable based on the micro-economic study of the industry.