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FOR SAMUKUTE & SONS
COMPANY NAME Samukute & Sons
9 Atlanta, Ivene
Cell number: +263776318497
Email: esamukute @yahoo.com
Chief Executive Officer
St Columbus High School
P O BOX 50
27 Samuel Mazorodze rd
Date Issued 24 October 2012
Prepared by group 18
BUSINESS SELECTION PROCESS OR METHODOLOGY OF BUSINESS
We need to identify the business in which we are going to develop a business plan.
Criteria for business selection
Location – the business that a plan is going to be developed should be located in Gweru.
This led us to eliminate all businesses which were located outside Gweru. We also
eliminated all businesses that are located in the CBD as this has high probability of failure
as a result of cut-throat competition from well established firms such as DCK, OK, TM
Type of business- we chosen a retail business since it provide basic needs that are likely to
have unlimited demand and thus the sector which many businesses have high risk of failure
if they venture into because of stiff competition. It is also the fastest growing sector or
industry in the economy which is of great essence to the nation if they grow.
Target market- this sector had a wide target base since all people consume basic needs
hence concentrating to such a sector could bring a tangible plan. Service markets need a lot
of expert to which our focus is limited to.
Fund requirement-this sector can be grown by increasing the capital base which therefore
is the key to success of any business and also demand a small capital base which is practical
and reasonable to be offered to an individual. All businesses which need to be financed with
a lot of funds to grow will be excluded.
Legal environment- this sector is mostly legalized by the Companies Act and many fiscal
terms in Zimbabwe unlike the mining sector and other sectors which include the
manufacturing and IT business. All businesses pertaining to mining sector had to be
All businesses that have been researched were brought to evaluation in accordance to the
above criteria to come up with the one to which the business plan should be developed and
or presented .
The evaluation was based on the need of the plan and the way that was used to eliminate
other possible businesses visited
Finally Samukute and Sons was selected to be the one in which the business plan is going
to be developed and be presented.
Business environment analysis (PEST)
Human Resources Plan
Samukute & Son retail shop is located in Ivene. It provides grocery to purely meet the
increasing demand, needs and desires of students and staff members at Midlands State
University who are residing in Ivene and all around residents of Senga, Nehosho and Kopje.
This plan seeks to develop strategies aiming to improve the condition of the business so as
to make it grow. This can be done through loan acquisition, recruitment of skilled workers
and developing the trading system. The amount that is needed to better develop the business
can approximately amount to US$20000. The strategies that can be used could be in form of
advertising, penetration pricing, and venturing into different locations to capture the needs
of people as well as offer of standardized products that have already certified (SAZ)
Standardization association of Zimbabwe. It is aimed at providing the best merchandise to
the community in Ivene and nearby areas at a cost they can afford and in such a way that
they are not, socially economically, politically isolated. Samukute’s goal is to provide the
students and members of staff with a wide range variety of merchandise. A Human
Resource plan show how the retailer’s functional structure arranged according to functions
with the as the head. Qualities and duties are also stated. There is also a financial breakdown
of the usage of cash. A swot analysis is carried out to determine the strength, weaknesses,
opportunities and challenges which may affect Samukute & Son retail shop.
Samukute & Son is a retail shop which is currently operating in Ivene providing the
residents with grocery goods especially convenient goods. The company was formed in
2011. The retail shop should venture into other markets like Senga and Nehosho.
To grow the business into a large retail shop by 2018.
To diversify into soft merchandise and provide superior products in a socially responsible
Honesty and Integrity
Commitment to quality
Increase market share.
To provide high quality goods to customers
To increase sales by 10% monthly.
To increase profit by 6% of sales.
To increase the market size by locating in nearby and surrounding areas.
COMPANY CORE VALUES
Fairness and equity.
Put customers ahead of everything as is the purpose of the business.
Mutual trust and respect
Integrity and honest.
Provision of best quality at affordable prices
Mr Samukute started a grocery tuck-shop business in 2003 as an unregistered trader. He
then registered his business in 2005 with Gweru City Council and employed two people of
which one of them was Rudo Jokwiro who was employed as a till operator. He then
converted his sole proprietorship business into a partnership by allowing his two son,
Lincoln and Forget allowing them to buy the interests which amount to 2/5.
BUSINESS ENVIRONMENT ANALYSIS.
This includes an analysis of the: Political, Economic, Social, Technological, Legislative and
Environmental changes taking place. The analysis outlooks as to whether these will be
opportunities or threats to the business.
The Zimbabwean Government has set up a number of small business support initiatives
through the Department of Trade and Industry; these include: Small Enterprise
Development Agency and the National Youth Development .These are aimed at promoting
small, micro and medium businesses. The agencies will be an opportunity for the business
as it will have access to support in terms of assistance with the development of a
comprehensive marketing strategy and plan, financial and accounting systems, branding and
so forth. Policies and initiatives aimed at growth, empowerment, procurement and other
factors. Key opportunities will include: Broad Based Black Economic Empowerment. This
is essentially a policy that focuses on growth and helping Zimbabwe realise its full
economic potential while taking into account employment equity, it will be an opportunity
for the business.
There are a number of economic changes taking place in Zimbabwe. The economic
slowdown has had an adverse effect on the economy of Zimbabwe’s evident from the
declines in manufacturing, mining, agricultural and other sectors. The resulting
unemployment has resulted in reduced numbers of people with buying potential and hence
an adverse impact on existing and potential businesses. The recession has led to the
tightening of budgets by public and private institutions. Individuals have also been noted to
not easily part away with their hard earned money. On a positive note, this year has seen the
fall of interest rates and this is sure to be opportunity for the business as its conception and
realisation will depend on borrowed funds. Borrowed funds attract interest as a cost and
therefore if the interest rates are low then the cost of borrowed funds is less. Inflation is at
an average of about 3.7%, rising prices continue to have a negative effect on the economy.
However, this is likely to increase as there is potential for ZESA to increase the electricity
prices by 45% thus posing threat to the business.
Zimbabwe has a relatively low crime rate and this is likely to be an opportunity for the
business as the business does not waste resources in terms of security. The current socials
ills in the country and indeed the rest of the world may also pose threaten the life cycle of
employees in the business. This includes social ills such as Aids/ HIV pandemic and the
surfacing incidence of the Swine flu. On a positive note the looks into the development of
more social enters and a majority of these are to be integrated with Information Technology
advancements. The growing population coupled with the growth in double income families
will be an opportunity for the business.
Technological changes taking place will be inopportunity to the business as it will have
access to the latest technology like e-retailing, networking platforms, devices and much
more. The business will open to internet marketing and e-commerce opportunities which
will expand the market for it.
The business will have to comply with the laws of the Republic of Zimbabwe there is a
threat of the business not being fully able to comply with laws and regulations. The business
will have to observe the following acts amongst others: Income Tax Act Occupational
Health and Safety Act Employment Equity Act.
HOW DO THE BUSINESS GET TO GROW AND SUCCESS?
Samukute and Sons retail shop is set to target the students, staff and other customers
Midlands State University. This business should be located in strategic areas such Senga and
Nehosho where the students can easily access to buy products at a less cost. This is for the
reason that a lot of students at the university reside off-campus and therefore they would
obviously need groceries hence the reason why they will buy from the retail and also they is
need to reduce transport cost to purchase goods from town.
These include MSU TUCKSHOPS and Senga Shopping Centre.
It is charging low prices in order to attract more students and the members of the staff. As
this is a new Internet resource centre for students and staff, charging less will definitely
attract many people. The more the students who come in the more the money the resource
centre gets. profits can also be made from this as many students will be expected to come
and utilise the internet café be cause of the less fees being charged.
This is the recommended prices .thus might not be an advantage as a small number of
people might come at the opening.
HUMAN RESOURCE PLAN
An organized structure is a diagram shown above which shows how Samukute retailers
should organize its activities in order to create value, it ensures value creation by assigning
people to task and connect the activities of different employees and functional areas in an
organization. The structure is mainly because the organization is concentrating on a few
Marketing officer Merchandising manager
related products and the departments are arranged according to the functions with the
managing director at the top.
Till operator A certificate in short computer source
NB: Our prices are in USD
Cash in hand – $15 000.00
Item quantity Estimated price
Inventory $ 12 800.00
Tills 4 $ 1 450.00
Miscellaneous per month
salaries per month
managing director $ 550.00
Marketing officer $ 300.00
Merchandising manager $ 300.00
Sales personnel $ 250.00
Shop assistant $ 200.00
Cashier $ 200.00
Total $1 900.00
Rentals $ 1500
Water $ 150
Electricity $ 200
Telephone bill $ 150
Total $ 2000.00
Strength, weakness, opportunity, threats
- The passion and commitment demonstrated by the business owner.
- The strong thriving entrepreneurial spirit of the business owner
- The charismatic and democratic style of leadership of the business owners shall be a
strength to the business
- The lack of funding to purchase additional equipment to reach new markets.
- The lack of capacity to meet a wider market
- in appropriate organisational structure
- The existence of government legislation in favour of preferential procurement for
- expecting many clients to come in
- Stiff competition from well-established retail shops for example OK,DCK
- Threat of possible high inflation rates as a result of increased electricity prices
- slow speed technological transfer
Human resource strategies
-on the job training
-off the job training
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