PROJECT PROPOSAL FOR STONE (CRUSHER)

PRODUCTS
MANUFACTURING PROJECT

PROJECT IMPLEMENTED IN OROMIA REGIONAL

STATE
SHAGER,GELAN SUB-CITY

PROMOTER ;- USMAN
SHUWE NURU
FEABURARY 2023
FINFINE,
 I. EXECUTIVE SUMMARY
Project Name Stone crusher product
Project Owner Usman Shuwe Nuru
Nationality Ethiopian
Project location Oromia Regional state ,Shager , Gelan Sub-city

Project Composition Cutting, splitting, resizing, and polishing of Dimension Stone

that will produce marble stones of three types: the unpolished
tiles with uneven sides, unpolished tiles with even sides, and
polished even sided tiles
Premises Required(owned) 10,000 M2 (1 hectar)
Total Initial Investment Cost Br. 5,000,000of this amount 30% (1,500,00.00) owner equity
and 70%(3,500,000.00) is Financed by Bank loan

Employment Opportunity Total 150 Employ in which Permanent 44 Skilled 40 and

unskilled 4 and temporary 106 Skilled 56 and Unskilled 50
Total 150
Market Share The Market Share of the Project will be 100% Domestic Market
for Foreigners and Domestic People
Benefits of the project For Value add, supply of quality product, employment, income
The region/ country generation, save foreign currency, technology transfer and
environmental protection by using Modern Technology.
Technology Modern Technology

Sales and Profit Net Profit will be More than 10 Million per Year
1. INTRODUCTION

General
This is dimension stones products manufacturing project feasibility study and strategic planning
management proposal. Dimension stones processing factory shall be established in Oromia
Regional state at a locality popularly known as Gelan Sub-city at a distance of some 24 km from
Addis Ababa on the main road to Adema town. The most important parameters which initiated
the project idea and influenced the promoter to involve in manufacturing precious products of
dimension stones are,
Existence of untapped potential resources of dimension stones and the need to optimally benefit
from these resources
Existence of ever growing and expanding markets and the demand for the output of precious
products of dimension stones
Existence government and environmental policies supporting the establishment of the factory
Existence of strong belief, commitment and internal capabilities of the promoter to establish the
project are some among others
In view of the above facts, EEBLA Industries private limited company has planned and
committed to establish the project in the background of latest development approach
The total initial investment required to establish the project is estimated at Birr 5 million. Out of
the total initial investment cost, Birr 1.5 million has planned to be raised by the promoter, while
the remaining balance of Birr 3.5 million is assumed to be earned from bank loan in the form of
Interest free Islamic Banking to be fully repaid within five years or before.
This proposal presents the feasibility of the project which would enable the promoter, concerned
government authorities and financing institutions to make sound decisions with regard to the
business investment at large. The following executive summary states the project soundness
indicators in clear and formal terms
The project involves in exploration and extraction of dimension stone economic resources and
expected to benefit the federal, regional and local governments to optimally benefit from the
potentialities of these resources, generation of income and employment opportunities. Hence, it
has found compatible with the operating government policies and development strategies indeed
The project will involve in exports of precious products of dimension stones and will enable the
nation to expand the development horizons of country’s export and improvement of the
deteriorated trade balance of the nation
The mounting changes and long term sustained economic growth of the nation, the ever growing
and expanding construction etc have found out to be outstanding opportunities which create
untapped markets and the demand for the products of precious dimension stones both at domestic
and foreign levels. Hence, the project is not expected to face market problems
The financial and economic forecasts projected over the coming ten years reveal the following
facts and figures which indicate the soundness of the project
The Revenue statement projected over the coming five years shows that the project gross sales
will increase from Birr 3.6 million first year and reaches Birr 6 million at end of year five and
then after
The profit/loss statement shows that the project net profit will grow from Birr 6 million first
year to Birr 10 million at end of year five and then after. The project net profit annual average
has found out to be Birr 8 million which indicates the capability of the project to fully repay its
initial investment cost in less than seven years (6.25 years) and expected to generate greater
return from business operations
The cash flow statement projected over the coming ten years reveals that the cash on hand/in
bank) will grow from Birr 16825000 to Birr 91072450 at end of year five which shows strong
liquidity position of the project
The balance sheet statement shows that the project total asset will grow from Birr 50 million to
Birr 125125000 at end of year 5 Likewise the financial internal rate of return of the project has
found out to be 23.36% indicating the capability of the project to borrow and successfully repay
its loan even at above prevailing interest rate on loan
The project will accord employment opportunity for over 40 Ethiopian nationals, generates an
average annual income of Birr 4050000 to the federal, regional and local government treasury in
the form of tax. Moreover, the project will contribute an average annual income of Birr 400000
to environmental protection and social support during its ten years economic life defined for the
project
All of the above business soundness and feasibility indicators show that the project under
consideration is economically viable, socially desirable, environmentally sound and financially
liquid indeed. Hence, we strongly recommend this project to be implemented indeed.
1.1 Project justification

The crusher products manufacturing project is established to manufacture different types of

Marbles. Cutting, splitting, resizing, and polishing of Stone that will produce marble stones of
three types: the unpolished tiles with uneven sides, unpolished tiles with even sides, and polished
even sided tiles.
This is dimension stones processing and production of precious products which shall have wider
applications and uses. Marble, granite and other precious construction materials, furniture and
ornaments shall be manufactured in the short medium and long term in the best interests of
domestic and foreign markets
1.1 Objective of the project

The main objective of this project is to establish cost effective, modern technology based and
customary oriented medium level of stone crusher manufacturing factory in Ethiopia.
1.3 The Socio-Economic significance of the project
The envisaged project deemed to contribute to the economic development of the national in
general and the region in specific with following ways:
1. Manufacture and Supply of Products
By manufacturing and supplying customer oriented, different type-high quality and cost
effective of crusher product, the project will satisfy the demand of citizens in particular and the
nation in general. Beside, the project also helps to solve shortage of marbles for construction
and house hold users.
2 Source of Revenue
As public policy of any nation, the government collects different forms of taxes from different
business organization and individuals. Among the different forms of taxes, business income
taxes are collected from under taking business activities. Therefore, the project will serve as
sources of revenue for both the region and nation as a whole.
3 Employment opportunities
One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the
development process other through creating self employment or employment in other
organization. Hence, this project wills 150 citizens
4 Generate foreign exchange
The nation can generate foreign currency when the factory start exports this products to
neighboring nations in the future.
5 Benefit for the local Community
As a corporate responsibility the company will engage in different development activities on
surrounding areas. This will better worse the community and contribute for the development of
the nation
6 Stimulate the local Economy
This factory has positive externality in the zone that will encourage the economic movement of
local economy. There will be economic relationship and transactions among different factors.
 1.4 Location and Land Required
A. Location
The envisioned project will locate in the envisioned project
site is located in Shager,Gelan sub-city oromia regional government , is 24 km faraway from
the capital city and located in west of Addis Ababa along the main Addis Ababa –Adema
main high way asphalt road.
The main justification behind the selection of this location is;
 Strategically located to the central and largest market of the nation(Addis Ababa)
 Relatively advanced development in infrastructure (Power, water, tele phone internet
road etc
 All asphalt road to the nearest market outlets
 Availability of huge skilled labor force
 Conducive interment policy and governance
 Environmentally fit manufacturing industry
B Land use plan

The factor plant has already acquired a total of one hectares, which is
equivalent to 10,000m2(1 Hectare) areas of land. This land planned to use as
follow indicated in table below
TABLE: PRODUCTION AND MGT SITE LAND & LAND USE PL

S.n Descriptions Measure Qty Unit area Total area

1 Manufacturing area  m2      
 1.1 Cutting area  4.5 1000 4500
 1.2 Spliting area    4 1000 4000
 1.3 Resizing area    4 1000 4000
 1.4 Polishing area    4 1000 4000
   sub total       12000
2 Storage area  m2      
 2.1 Raw materials    4 1000 4000
 2.2 Semi finished    4 1000 4000
 2.3 Finished products    4 1000 4000
 2.4 Defective products    4 1000 4000
   sub total       12000
3 Management building area  m2      
 3.1  operations mgt office   10  50  500
 3.2  development mgt   10 50 500
 3.3  support mgt building   10 50 500
 3.4  planning & control staff   10 50 500
   sub total       2000
4 Other use areas  m2      
 4.1  parking loading/unloading area    4 1000 4000
 4.2  workshop area    4 1000 4000
 4.3  launge, meeting hall store & clinic    4 250 1000
 4.4  green area, play ground & free area    indefinite   55000
   sub total       64000
    Total       95000

2. MARKETS STUDY
INTERNATIONAL DIMENSION STONE TRADE EXPORT/IMPORT
The international trade of stone products in the year 2014 reached a value of 22.8 billion euro.
This determined growth of 1.8% compared to 2013 and a total quantity handled of about 86
million tons (+7.4% compared to 2013) (see Table A). The country with the largest turnover is
China. In 2014, China traded marble and granite for a total value of 6.8 billion euro (+4.6%
compared to 2013) and a quantity of 26.4 million tons (+7.7%). See the following table.
A GLOBAL TRADE STATUS

 A INTERNATIONAL DIMENSION STONE TRADE EXPORT/IMPORT

YEARS
S.N DESCRIPTIONS 2011 2012 2013 2014
1 QTY IN MILLIONS OF TONS 95.4 96.1 80 86
2 AV PRICE/TON IN ERO 197.35 223.44 280.46 266.08
3 VALUE IN MILLION ERO 18821 21472.6 22437 22856.6
SOURCE: GLOBAL TRADE ATLAS 2015
China ranks first in terms of market share. China had a market share of 35.8% in 2014 in global
dimension stone export and import. This means that out of all dimension stone materials
exported worldwide, worth a total of 12.8 billion euro, 35.8% (4.6 billion euro) was exported
from China. Chinese stone materials recorded an increase of 5.6% as compared to 2013 in terms
of value and 11.8% in quantity, for a total of 11.6 million tons. The average unit value of
Chinese products, however, decreased by 6.3%, from 421 euro per ton in 2013 to 394 euro per
ton in 2014. This decrease is mostly due to the 9.8% reduction in demand from Japan from a
value of 624 million in 2013 to a value of 563 million in 2014. In Japan, China holds a market
share of almost 95% and it is in fact China’s second most important market after South Korea.
An interesting trend is seen for exports of finished marble, that made China a record export value
of 1.3 billion in 2014, an increase of 4.5% compared to 2013, with an average unit value of 810
Euro per ton (+14.8%). The United States is the prime market for finished Chinese marble
products. In 2014, 143,000 tons of finished marble products went to the US, for a total value of
152 million. This determined an increase of 7.3% in value and 4% in quantity compared to 2013.
The US market share held by China for this product category thus increased by one percentage
point from 16% to 17%, thereby confirming China as the third largest supplier to US after
Turkey and Italy. Exports of finished granite products, which constitute almost 70% of the value
of Chinese exports (3.2 billion out of a total of 4.6 billion in 2014), increased too compared to
2013, by 6.4% in value and 1.6% in quantity, for a total of 7.7 million tons and an average unit
value. of 414 euro per ton (+4.7%). The leading market for Chinese granite products was South
Korea, followed by Japan and the USA.

MARKET SHARE OF 10 LEADING COUNTRIES

 B MARKET SHARE OF 10 LEADING COUNTRIES

YEARS
S.N COUNTRY 12 13 14
1 CHINA 32.50% 34.20% 35.80%
2 ITALY 13.70% 13.60% 13.50%
3 TURKEY 12.10% 12.90% 12.10%
4 INDIA 10.80% 10.30% 10.80%
5 BRAZIL 6.50% 7.20% 7%
6 SPAIN 5% 4.80% 4.40%
7 GREECE 1.90% 1.90% 2%
8 EGYPT 2.20% 2.10% 1.80%
9 IRAN 1.10% 1.10% 1.80%
10 PORTUGAL 1.70% 1.70% 1.70%
Source: Global Trade Atlas processing: IMM.
NB: The table shows the leading 10 countries for export value in 2014. Together, they account
for 90% of the world value of stone exports that stood at 12.8 billion euro in 2014
The second country in terms of market share is Italy, which held 13.5% of the world markets in
2014, slightly lower than in 2013. Throughout 2014, the Italian stone sector exported 4,194,035
tons of marble, granite, travertine and other materials as raw materials and finished products for
a value of 1,940,861,130 euro. This means a slight decrease in quantities of 1.8%,
but with a slight increase in value +0.4%. The leading items of Italian marble, granite and other
stone exports is finished marble, which showed a 3.5% decline for tons exported, but an increase
in value of 3.8% compared to 2013. In 2014, Italy exported 891,933 tons of finished marble for a
total value of nearly 936 million euro, with a very significant increase in
the average unit value from 975 euro per ton in 2013 to 1049 euro per ton, hence a 7.5%
increase. The result for raw marble exports was different. Compared with an almost constant
 turnover, they showed a 3% decrease in export quantities. Despite the decrease of 1.3 million
tons of marble blocks, slabs were exported for a value of 331 million euro. The
negative trend of Italian granite’s exportations did not stop and there was in fact a further loss of
market share. In 2014, just over 136,000 tons of blocks were exported for a value of 36 million (-
9.8% in quantity and -10.3% in value), while 570,000 tons of finished granite products were
exported for a value, still significant despite the decrease, of 534.6 million euro (-2.3% in
quantity and -4.2% in value).
Turkey, the third country had market share of (12% in 2014), exported stone materials for an
overall value of 1.5 billion euro and a quantity of 7.2 million tons, 4 of which went to China.
Turkish exports did, however, suffer a major setback with a decrease of 17% in terms of quantity
and 16.2% in terms of value compared to 2013. This is mainly due to the reduction in
Chinese demand for raw marble while its demand for granite rose significantly (imported mostly
from India). This trend announced an increase in India’s market share that rose from 10.3% in
2013 to 10.8% in 2014. China is the leading market for granite blocks from India and USA for
finished granite products.
C TEN YEARS SUMMARY OF GLOBAL TRADE TREND
YEARS IN 000 TONS
S. 200 200 200 200 200 201 201 201
N DESCRIPTIONS 5 6 7 8 9 0 2011 2 2013 4
DIMENSION 238 296 309 344 303 423 9540 961 860
1 STONE TRADE 14 19 28 18 48 50 0 00 80000 00
- -
INCREASE/ 580 130 407 120 5305 1.6E+ 600
2 DECREASE 0 5 9 349 0 02 0 700 07 0
- -
24. 4.4 11. 11.8 39. 125. 0.7 16.75 7.5
3 CHANGE IN % 0 4% 2% 3% % 5% 3% 3% % %
AVERAGE
4 CHANGE % 18.55%
SOURCE: HATCH REPORT & GLOBAL TRADE ATLAS
2. GLOBAL DEMAND FOR STONE
In 2014, world imports stood at 39 million tons of natural stone for a total value of almost 10
billion euro, with a 5.6% increase in quantity and a 2.7% increase in value compared to 2013.
The leading country for imports was China that imported 14.7 million tons of natural stone for a
value of 2.2 billion (+4% in quantity and +2.5% in value compared to 201The leading supplier
country for China in terms of value was Turkey, from which it imported raw marble and finished
marble products. The largest quantities were imported from India, though; China turns to almost
exclusively for the purchase of raw and roughed down granite.
The second most important market was United States. In 2014, the US imported materials for a
total value of almost 2 billion euro, recording a 5% increase on 2013 and an average unit value
of 539.7 euro per ton. The first supplier country for the USA is Brazil, from which it imports
mostly finished granite products. In 2014, the US imported Brazilian materials for a
total of 579.4 million euro in 2014, an increase of 5.5% on 2013.
The next two markets, Japan and South Korea, are completely dominated by China that held a
share of approximately 95% and 91% respectively in 2014.
Finally, the German market imported natural stone for a value of 379 million euro, showing a 6%
rise over 2013. Here again, China is the leading supplier with a value of exports of quality
materials of 164 million euro, followed by Italy.

 A Global demand for dimension stone in million euro

Years
S.n Demand by country 2012 2013 2014
1 China 1993 2138 2192
2 Usa 1616.5 1886 1983
3 Japan 680.6 659.5 597.4
4 South korea 574 525 570
5 Germany 384 357 379
6 Others 4459 4147 4258
Total 9707.1 9712.5 9979.4
SOURCE: GLOBAL TRADE ATLAS IMM 2015

B International dimension stone demand in volume

 Years
S.n Descriptions 2011 2012 2013 2014
1 Value in million ero 84722.4 9707.1 9712.5 9979.4
2 price/ton in ero 197.35 223.44 280.46 266.08
3 Demand in 000 tons 42930 43444 34613 37505

SOURCE: GLOBAL TRADE ATLAS IMM 2015

 C Global dimension stone demand % of global total trade

Years in 000 tons
S.n Descriptions 2009 2010 2011 2012 2013 2014
1 Total global trade 30348 42350 95400 96100 80000 86000
2 Total global demand 13656.6 19057.5 42930 43444 34613 37505
3 Demand % of global trade 45% 45% 45% 45% 43% 43.60%
4 Annual average 44.43%          
SOURCE: HATCH REPORT, GLOBAL TRADE ATLAS & OWN COMPUTATION

Using the trends of the global dimension stone industry during the last ten consecutive years and
taking an average annual change both in price and quantity demanded, an attempt has made to
forecast and project the global demand for dimension stone products as under.

D  Global dimension stone demand projection

S. Years in 000 tons
n Descriptions 2014 2015 2016 2017 2018 2019
120865.2 143285.7 169865.
1 Total global trade 86000 101953 8 9 3 201375.3
Demand % of global 44.43
2 trade % 44.43% 44.43% 44.43% 44.43% 44.43%
4 Total global demand   45297.7 53700.44 63661.88 75471.1 89471.04
 2 5 6
SOURCE: GLOBAL TRADE ATLAS IMM 2015 AND OWN COMPUTATION
3. STONE CRUSHER TRADE IN PROJECT TARGET MARKET AREAS
A DESCRIPTION OF PLANNED TARGET MARKET AREAS
Based on the findings of assessment results conducted on the global and domestic dimension
stone markets and EEBLA Industries access, the dimension stone products of the planned project
is assumed to be availed to both domestic and foreign markets. Accordingly, the Middle East
countries like KSA, Oman, Jordan, UAE & Qatar have chosen to be the primary foreign target
market areas during the first five years. During the first five years, it has also planned to reach
four neighboring regional states of Eastern Ethiopia, namely, Dire Dawa, Harari, E/W Hararghee
zones of Oromia and Somali regional states.
B DEMAND IN FOREIGN TARGET MARKET AREAS
Once the target market areas have chosen and selected it is pertinent to measure the target market
volume, sales potential and the demand for dimension stone products in clear and formal terms at
the outset. Accordingly, an attempt has made to measure and quantify the demand for dimension
stone products in both domestic and foreign target market areas as follows
As mentioned above UAE & Qatar are the foreign target market areas chosen for the first five
years operational period. UAE & Qatar are among the fast growing, safe secured and stable
countries from among the Gulf nations. UAE & Qatar are among the major importers of
dimension stone products both in raw material and beige marble/granite. The owners and
promoters of EEBLA Industries are residing and running overseas business enterprises
established in UAE and proved to have strong access and business relations with existing and
potential users, whole sellers and retailers of dimension stone products in both foreign target
market areas. The dimension stone trade and the demand for raw materials and finished
marble/granite in foreign target markets is described as follows
Years in 000 tons
S.n Countries 2005 2006 2007 2008 2009
I Dimension stone import          
1.1 Raw materials import          
A Uae 87 57 95 110 68
B Qatar 168 162 188 179 42
C Oman 0 0 0 0 0
D Jordan 0 0 0 0 0
E Libanon 95 89 97 115 130
  Sub total 350 308 380 404 240
1.2 Finished product import          
A Uae 193 0 277 331 312
B Qatar 69 892 304 131 157
C Oman 0 0 0 0 0
D Jordan 0 0 0 0 0
E Lebanon 58 70 91 116 164
  Sub total 320 962 672 578 633
  Total import 670 1270 1052 982 873
SOURCE: HATCH REPORT
A courtesy look into the imports dimension stone products both as a raw material and beige
marble/granite products in foreign target market areas reveal that the minimum demand was
registered during the year 2005 which was 670,000 tons and the maximum was 1270000 tons
registered in the year 2006. An average import in foreign target market areas 969400 tons per
year.
THE SUPPLY OF DIMENSION STONE IN FOREIGN TARGET MARKETS
S. Years in 000 tons
n Countries 2005 2006 2007 2008 2009
I Dimension stone export          
1.1 Raw materials export          
A Uae 0 0 0 0 0
B Qatar 0 0 0 0 0
C Oman 0 0 0 0 0
D Jordan 0 0 0 0 0
E Lebanon 0 0 0 0 0
  Sub total 0 0 0 0 0
1.2 Finished product export          
A Uae 0 0 0 0 0
B Qatar 0 0 0 0 0
C Oman 91 97 73 266 169
D Jordan 221 195 197 217 24
E Lebanon 0 0 0 0 0
  Sub total 312 292 270 483 193
  Total export 312 292 270 483 190
SOURCE: HATCH REPORT
Oman and Jordan are the major suppliers of dimension stone to the Gulf countries. However, the
supply of dimension stone from Gulf countries has observed to be declining significantly. The
declining supply situation would inevitably force the Gulf countries importers of dimension
stone to search for alternative suppliers from proximate countries. Thus, the current supply of
dimension stone in foreign target markets has found out to be encouraging indeed.
D DEMAND AND SUPPLY COMPARATIVE ANALYSIS
Years in 000 tons
S.n Descriptions 2005 2006 2007 2008 2009
1 Demand 670 1270 1052 982 873
2 Supply 312 292 270 483 190
3 Demand in excess of supply 358 978 782 499 683
4 Demand satisfied % 46.60% 23% 25.70% 49% 21.80%
5 Unsatisfied demand % 53.4% 77% 74.3% 51% 78.2%

HATCH REPORT & OWN COMPUTATION

The above table shows that existing supply of dimension stone products from and to Gulf
countries had not been able to satisfy more than 33.22% of effective demand on the average and
more than 66.78% has found out unsatisfied. In view of the above facts and existence of excess
demand over supply make the foreign target markets ideal and promising indeed
4. THE MARKETING GOALS & GOAL RELATED STRATEGIES
Marketing Strategies are nothing but sets of principles and methodologies defined for successful
achievements of the marketing objectives and goals. It is also a managerial process of designing
and developing strategic fit between the project objectives and goals and the marketing
environments in the background of the changing world.
A MARKETING OBJECTIVES AND GOALS
To export 70% of its output ready for sale to foreign target market areas
To obtain an average of 13- 15% market share in foreign target market areas & maintain
competitive position
To maintain more than 10% market share in domestic target market areas
To expand export target markets from 2 to 4 in five year’s time
To increase the products of dimension stone from 2 to 4 in five years.
GOAL RELATED MARKETING STRATEGIES
CORPORATE MARKETING STRATEGY
Marketing strategies that would enable to win the favors of customers over existing and potential
competitors and would help in attaining customer satisfactions in the back ground of the
changing marketing environments are believed to be important factors to ensure long term
survival, excel competition and develop customer confidence and loyalty at large., To this effect
it is pertinent to design and develop appropriate and sound marketing strategy.
BUSINESS PHILOSOPHY DVT
The sources of any business profit are existence of adequate and qualified markets and the
demand for the output of the business. Existence of the above factors alone is not enough to
ensure sustained earnings from business operations, unless supported by winning the favors of
customers over competitors. To be able to win the favors of customers, existence of prior
knowledge and clear understanding of the needs, requirements and problems of customers is a
key. Thus putting the interests of existing and potential customers at the center of all decision
making process and orienting all staff thinking towards customer satisfaction is believed to be an
immediate solution. This shall be the business philosophy of the company.
QUALITY AND SECURITY DEVELOPMENT
Achieving excellence in quality is among the most important parameters which evaluate the
soundness of any business in the present day world. Analysis of, customer influencing factors,
reveal that, existence of reliable, security, quality services and prices are among the most
important determinants of demand shifters. Thus exerting all efforts needed to continuously
improve the security, quality of products/services of the company shall be among significant
marketing strategy of the company.
Existence of sound marketing strategy both at pre operational and operational dimensions
especially for service rendering companies is crucially important. The following are selected as
best corporate strategic options.
OPTIMAL UTILIZATION OF GEOGRAPHICAL ADVANTAGE
Analysis of the current concentration and distributions of dimension stone shows that the origins
of exports are coming to the project target market areas from Europe and far East countries such
as China, Portugal India etc. Ethiopia has excellent proximity advantage over existing none Gulf
suppliers both in terms of frequencies and time phase out to deliver products and cost.
Accordingly, such important geographical advantages shall be optimally utilized
COST LEADERSHIP STRATEGY
Wining the favors of existing and potential customers of the target market areas over other
suppliers is a key to obtain desirable market share and maintain competitive positions. EEBLA
Industries private limited company has geographical labor, government policy support and
incentives such as tax exemption for some three years etc which would enable to gain
comparative advantages from export of dimension stone.
OPERATIONAL DIMENSION MARKETING STRATEGY
PRODUCT DEVELOPMENT
There are various types of dimension stone products which differ in quality, use and applications
colors, Size and shape and packaging etc. EEBLA Industries private limited company shall
establish strong R & D functional unit which shall be entrusted in conducting continuous and
process oriented marketing, research, customer tastes and preferences and development of
development of quality products in the best interests of existing and potential customers
PROMOTION
Creating satisfactory exchange of views and promoting shared understanding among potential
and existing customers of dimension stone products both at domestic and foreign target markets
through outstanding and effective use of positive impact generating direct/indirect promotional
strategies. Sound promotional messages, capable and influential promotion team appropriate
mediums and environments shall be well prepared organized and implemented
PRICING
The prices for goods/services are among crucial factors which determine the success of
marketing objectives in general and choice and selection decisions of customers among different
suppliers. Not only competitive but also adequate and reasonable prices are crucial to successful
achievement of marketing objectives and goals. Currently an average domestic and global
market price per ton for dimension stone products is estimated at Birr 450 to Birr 550 and 197.35
– 280.46 Euros respectively. EEBLA pricing strategy shall be to offer at less than 10% to 20%
for both domestic and foreign markets with a view of using as a penetration strategy as well.
EEBLA shall have a pricing strategy which considers fleet, frequency of purchase, none credit
purchase etc. discounts for both domestic and foreign target customers
PLACING/DISTRIBUTION STRATEGY
Placing/distribution strategy is again among the most important marketing strategy which gained
global recognition and universal acceptance. Appropriate and sound Placing/distribution strategy
which does not cost time money and results in direct/consequential negative impacts on both the
supplier and buyers are crucially important. Accordingly, it is very important to choose
appropriate centers of distribution, channels, effective and efficient logistics and systems of
distribution. No single domestic supplier has such complete and appropriate placing/distribution
strategy in the dimension stone target industry. EEBLA dimension stone shall capitalize the
drawbacks of existing suppliers
Market Prospects and Market Share
From the above market demand and supply analysis for the envisioned products there exist very
huge market gab in Ethiopia. Hence, the factory will be successful by entering in to this market.
The envisioned project will supply 0% of its product for export (International market) and
100% of its product to supply to Domestic market.
Marketing Strategy and Promotion
The factory will follow the following promotional methods:
 Electronic Medias (website development)
 Advertising (Media, flayer and news paper)
 Public Relations
 Branding

The marketing strategy mainly focus on the satisfying the needs and the requirement of the
customer.
Local Geology
The project area Babile are occupied by Granite intrusion and high grade metamorphic which are
part of the Mozambique belt. This granite is course grain due to the low cooling of magma in the
sub-surface of earth, and it is large enough to be visible with the unaided eye. This rock units are
exposed in all sides of the study area, it has intruded high grade metamorphic mainly gneiss. The
granite that is found in Babili has pinkish fresh color and grey weathered color with coarse grain
texture.
Generally this granite has a mineral composition mainly of felsic and minor amount of mafic
minerals. This granite is pinkish to light color, with grains. This minerals are quartz, orthoclase,
and plagioclase and minor amount of Biotite minerals in hand specimen analysis. The amount of
orthoclase which is pinkish color is greater than plagioclase which is white to colorless. This
granite is very hard, denser, beauty and chemical inert.
The first site selected for granite quarry have total width 875m, length 450m, the thickness 75m
and the total volume 29531250 m3. The total volume of the granite resource (29531250 m3)
within the site one only 1500,000 m3 is required for granite dimension stone project in Eebla
industries. Lastly, this granite is suitable for dimension stone uses in quantity and quality;
moreover, the resource is geologically profitable both long and short time investment for its
availability in abundant.
B UTILITIES AND SUPPLIES
Water, Fuel and lubricant and electricity are the major utilities and supplies required to
manufacture dimension stone products. These utilities and supplies are available at the project
site and the total costs of utilities and supplies is assumed to be 2% of administration costs and
the consumption plan of the project at full capacity is described as follows
 
Amount/
S.n Description Measure Av.rate year
1 Electricity Kw 100 kw/ton .25000000
2 Water M3 100 m3/ton 500000
3 Fuel Liter 1000lt/day 250000
4 Oils & lubricants Liter 10% of fuel 25000

PROJECT ORGANIZATION AND MANAGEMENT PLAN

A. Organization and Management

Organization is a managerial process of planning, coordination and control of project on and off
site activities, resources, process and output effectively and efficiently. Organization is among
the most important tools which enable all stakeholders to have shared understanding of project
objectives, act independently and yet collectively to achieve common goals. Without appropriate
and sound organization and management, it is not possible to benefit from available resources
and satisfy the demand for the output of the business. Inability to benefit from optimal utilization
of resources and satisfy the needs and requirements of customers would definitely lead to failure
of planned business objectives. The argument which states that there is no bad business but bad
management clearly defines the roles and significances of organization and management. Under
normal condition every manager needs his or her project to be profitable, competitive and
maintain leadership position. To successfully achieve the above ambitions of managers,
attainment of management efficiency and effectiveness is a must. To this effect existence of
sound organization and management capacity has found out to be an important tool.
1. OPERATIONS/CUSTOMER CORE PROCESS
This core process shall be entrusted in planning, coordination and control of the operations
activities, resources, process and output in an efficient and economical manner. The dimension
stones products/services are required to be done with a view of attaining maximum customer
satisfaction, economies of scale and factor productivity. To this effect, the operations/customer
core process should and must be organized on sound management of Retail and corporate
customers, technology and treasury which together generate added values to both the project and
customers in one single whole

DEVELOPMENT CORE PROCESS

The development core process shall be entrusted in creating fertile ground, designing and
developing systems and strategies which would help the project to expand business development
horizons, markets, customers etc
Accordingly, this core process shall have the following business groups
Research and development group
Business development group
Market development group
PR & Customer service business group
3. SUPPORT CORE PROCESS
The support core process shall be responsible to provide necessary inputs, facilities enabler and
related support to the operations and development core process and ensures the validity of their
performance against preplanned budget and use of resources, etc at large. Accordingly, the
support core process shall have the following major business groups
Human resources and personnel mgt group
Finance and accounts mgt group
Materials and supplies mgt
Property and logistics mgt group
PLANNING AND CONTROL CORE PROCESS
The planning and control core process shall be entrusted in performing the following major tasks
Planning and budgeting group
Supervision and control group
Auditing group
MIS and reporting group

PROJECT ADMINSTARTION LEVELS

The entire project activities, resources, process and output shall be planned, coordinated,
implemented managed and controlled through three management and administrative levels
THE OWNER/PROMOTER
The owner/promoter of the project shall be the top management and ultimate decision making
body. The major duties and responsibilities of this administrative level shall be,
To provide strategic plan and leadership support to the project general management
To appoint the general manager and supervisory level managers,
To determine and approve the wages, salary and benefits of the general manager and supervisory
level managers
To approve the plans and budget proposals of the general management office
To review and comment on the performances and achievement results of the project
GENERAL MANAGEMENT OFFICE
The project day to day activities shall be planned, coordinated and controlled by the general
manager
General Manager shall be reporting to the top management
General Manager shall be responsible to monitor, control support and facilitate the individual
and team efforts of all core process staff
SUPERVISORY MGT LEVEL
There shall be four supervisory level managers such as, operations, marketing and business
development, and support and control core process heads/team leaders
The supervisory level managers shall be reporting to the general manager
Each supervisory level manager shall be responsible to plan, coordinate and control the
activities, resources; process and output of his/her respective core process in an efficient,
effective and economical manner
Organizational Structure of the Project

CHART: PROJECT ORGANIZATIONAL STRUCTURE

PROMOTER

G.M

OPERATIONS DEVELOPMENT

RETAIL CORPORATE BUSINESS MARKET

TREASURY TECHNOLOGY PR R&D

SUPPORT PLANNING & CTRL

HRD FINANCE PLANNING CTRL

MATERIAL LOGISTICS AUDIT MIS

C. Man Power Requirements with Qualifications
TABLE: MAN POWER REQUIREMENT

Specifications
S.n Positions Qty Education Profession Experience
1 Management staff        
1.1 General manager 1  Ba/ma  Bmgt  10+ years
1.2 Operations manager 1  Ba/ma  Chemical  8+ years
1.3 Business dvt manager 1  Ba/ma  Bmgt  8+ years
1.4 Support manager 1  Ba/ma  Mgt/acct  8+ years
1.5 Planning & ctrl manager 1  Ba/ma  Acct 8+ years 
  Sub total 5      
2 Supervisors & experts        
2.1 Operations supervisors        
1 Mining line head 1  Bsc  Geology  6+ years
2 Spiliting line head 1  Bsc  Mechanical  6 + years
3 Resizing line head 1  Bsc  Designer  6 + years
4 Polishing line head 1  Bsc  Designer  6 + years
  Sub total 4      
2.2 Development supervisors        
1 Business dvt 1  Dip/ba  B mgt  5 + years
2 Market dvt 1  Dip/ba  Mkt mgt  5 + years
3 Product dvt 1  Dip/ba  Mkt  5 + years
4 System & strategy dvt 1  Dip/ba  Mkt  5+ years
  Sub total 4      
2.3 Support supervisors        
1 Hrd & personnel 1  Dip  Mgt  5 + years
2 Finance & accounts 1  Dip  Acct  5 + years
3 Materials & supplies 1  Dip  Mgt  5 + years
 4 Property & logistics 1  Dip  Mgt  5 + years
  Sub total 4      
2.4 Planning & ctrl supervisors        
1 Planning & budgeting 1  Dip  Acct/econ  5 + years
2 Supervision & follow up 1  Dip  Acct  5 + years
3 Audit and control 1  Dip  Acct  5 + years
4 Mis & documentation 1  Dip  Acct  5 + years
  Sub total 4      
3 Technical staff        
3.1 Machine operators 4  Dip  Mechanics  5+ years
3.2 Drivers 5 Grade 4 +  Civil  5 + years
3.3 Repair & maintenance 2  Dip  Auto  5 + years
3.4 Lab technician 1  Dip  Chemical  5 + years
  Sub total 12      
4 Other staff        
4.1 Executive secretary 1  Dip  Sec. Science  4+ years
4.2 Sales and cashiers 2  Dip  Mkt/acct  4 + years
4.3 Messenger/cleaners 4  10+  Relevant  2+ years
4.4 Guards 4  10+  Security  2+ years
  Sub total  11      
5 Temporary 106
  Total man power  150      

3. Skilled, Unskilled, Permanent and Temporary Employees

S.N Skilled Unskilled Sami Skilled Total

Permanent 40 4 44
Temporary 56 50 106
Total 96 54 150
 PROJECT FINANCIAL STUDY

1 Key notes and assumptions

S.n Descriptions Amount

1 Annual working days 250
2 Working hours per day 8
3 No of shift 1
4 Capacity utilization rate in %
A First year 60%
B Second year 70%
C Third year 80%
D Fourth year 90%
E Fifth year and then after 100%
5 Depreciation & amortization rate %
A Land and building 5%
B Machinery 10%
C Vehicle 20%
D Furniture 10%
E Intangible assets 20%
6 Loan and related assumptions
A Loan amount required in birr 15000000
B Repayment period in years 5
C Terms of repayment semi annuals 10
D Interest on loan in% 10%
7 Cost & related assumptions
A Total operating cost % of gross revenue 75%
B Direct cost % of operational costs 50%
C In direct & marketing cost % of operational cost 30%
D General admin cost % of operational cost 20%
8 Provision for tax % 30%
9 Withdrawal/dividened % of net profit 25%
10 Labor & materials cost annual increase 10%

. Initial Investment Cost of the Project

A Initial investment, sources of fund & depreciation schedule

Sources of fund Depreciation
S.n Descriptions of investment items Value in birr Own Loan Rate Amt
1 Land and building 8000000 8000000 0 5% 400000
2000000
2 Machinery & equipment 30000000 0 10000000 10% 3000000
3 Vehicles 4000000 3000000 0 20% 800000
4 Furniture & equipment 2000000 2000000 0 10% 200000
5 Prepaid expense 1000000 1000000 0 20% 200000
6 Working capital 5000000 0 5000000 0 0
3500000
  Total 50000000 0 15000000   4600000

B. Initial Fixed Investment Cost of the Project

I Land building and construction

Costs
S.n Descriptions Unit Qty Unit cost T.cost
I Land and building        
1 Land lease M2 130000 10 1300000
2 Building & construction M2 1340 5000 6700000
  Sub total       8000000
Ii Machinery and equipment
Cost in usd Local
Qt Exc
S.n Descriptions Unit y Unit costT.cost rate Birr
1 Excavator Set 2 102700 205400 21.5 4416100
2 Spliting machine No 2 4868 9736 21.5 209324
3 Calibrating machine Set 2 11508 23016 21.5 494844
4 Edge cutting machine Set 3 6000 18000 21.5 387000
5 Shape cutting & grinding No 2 10445 10445 21.5 224568
6 Edge profiling machine No 2 6993 13986 21.5 300699
7 Wire saw machine No 2 28620 57240 21.5 1230660
8 Polishing machine No 2 22662 45324 21.5 974466
9 Lifting machine No 2 2567 5134 21.5 110381
10 Gantry cutting machine No 2 45360 90720 21.5 1950480
11 Mosaic cutting machine No 2 6900 13800 21.5 296700
12 Column profiling machine No 2 15048 30096 21.5 647064
13 Granite wire saw No 2 21960 43920 21.5 944280
14 Marble wire saw No 2 18360 36720 21.5 789480
15 Drilling machine No 2 6660 13320 21.5 286380
16 Hammer rock driller No 2 7380 14760 21.5 317340
17 Wheel loader No 2 125340 250680 21.5 5389620
18 Core boring machine No 4 5040 20160 21.5 433440
19 Granite diamond wire Meter 500 40 20000 21.5 430000
20 Marble diamond wire Meter 300 40 12000 21.5 258000
21 Air & water bags Meter 300 285 85500 21.5 1838250
89964.8
22 Crane No 2 44982.42 4 21.5 1934244
23 Generator No 2 11000 22000 21.5 473000
Estimat
24 Freight & insurance e     95400 21.5 2051100
Estimat
25 Instalation & fittings e     168027 21.5 3612581
  Sub total           30000000
Iii Vehicle cost breakdown
Cost in usd Local
S.n Description Unit Qty Unit cost T.cost Rate Birr
1 Dump truck No 1 71800 71800 21.5 1543700
2 Pickup motor truck No 2 41070 82140 21.5 1766010
3 Employee service bus No 1 32106.51 32106.51 21.5 690290
  Sub total           4000000

Iv Furniture and equipment cost breakdown

Cost in birr  
S.n Description Unit Qty Unit cost T.cost
1 Factory tools & equipment Birr L.sum   750000
2 Lab equipments Set 4 50000 200000
3 Computers & accessories Set 25 10000 250000
4 Tables and chairs Set 50 5000 250000
5 Desk top equipments Set L.sum   200000
6 Cash safe No 2 25000 50000
7 Shelf & related No 50 2500 125000
8 Cabinents & stands No 50 2500 125000
9 Refrigirator No 2 7500 15000
10 Others Set L.sum L.sum 35000
  Sub total       2000000
V Prepaid expense breakdown
Cost in birr  
S.n Description Unit Qty Unit cost T.cost
1 Royalty fee % of lease 5% 1300000 65000
2 Consultancy fee Person days 100 1000 100000
3 Staff training fee Person days 400 1000 400000
4 Preoperational mkt Person days 100 1000 100000
5 Company formulation Estimate     167500
6 Miscellaneous expenses Estimate     167500
  Sub total       1000000

B. Initial Working Capital Requirements

Vi Initial working capital cost break down

S.n Description Unit

1 Direct materials, parts & related 90 days 2000000
2 Direct labor 90 days 500000
3 Work in process 5 days 500000
4 Wages and salary 1 month 500000
5 Receivables 15 days 500000
6 Energy & utility 1 month 250000
7 Uniform expenses 6 months 250000
8 Insurance on time 500000
9 Total working capital 5000000
NB. PARTS FOR THE ENTIRE MACHINERIES AND EQUIPMENTS & OTHER MINING
AND PROCESSING MATERIALS CONSTITUTE THE DIRECT MATERIAL COSTS

B Loan repayment & interest expense

Specification
S.n Description Principal Interest O/s
A Disbursement, 31, dec, 2020 0 0 15000000
B Repayment      
1 30, june, 2020 1500000 750000 13500000
2 31, dec, 2020 1500000 675000 12000000
  Total 3000000 1425000  
3 30, june, 2021 1500000 600000 10500000
4 31, dec, 2021 1500000 525000 9000000
  Total 3000000 1125000  
5 30, june, 2022 1500000 450000 7500000
6 31, dec, 2022 1500000 375000 6000000
  Total 3000000 825000  
7 30, june, 2023 1500000 300000 4500000
8 31, dec, 2023 1500000 225000 3000000
  Total 3000000 525000  
9 30, june. 2024 1500000 150000 1500000
10 31, dec, 2024 1500000 75000 0
  Total 3000000 225000  
 C Propject operating cost schedule
S. Years
n Description 1 2 3 4 5
1048750 1288750 1528750 1768750 2008750
1 Direct costs 0 0 0 0 0
2 Indirect costs 3146250 3866250 4586250 5306250 6026250
3 Marketing & promotion 3146250 3866250 4586250 5306250 6026250
4 General admin costs 4195000 5155000 6115000 7075000 8035000
2097500 2577500 3057500 3537500 4017500
5 Total operational costs 0 0 0 0 0
Depreciation &
6 amortization 4600000 4600000 4600000 4600000 4600000
7 Interest expenses 1425000 1125000 825000 525000 225000
2700000 3150000 3600000 4050000 4500000
8 Total operating costs 0 0 0 0 0

D Working capital schedule

S. Years
n Descriptions 0 1 2 3 4 5
200000 220000 242000 266200 292820
1 Direct materials 90 days 0 0 0 0 0 3221020
2 Direct labor 90 days 500000 550000 605000 665500 732050 805255
3 Work in process 5 days 500000 550000 605000 665500 732050 805255
Wages and salary 1
4 month 500000 550000 605000 665500 732050 805255
5 Receivables 15 days 500000 550000 605000 665500 732050 805255
402627.
6 Energy & utility 1 month 250000 275000 302500 332750 366025 5
Uniform expenses 6 402627.
7 months 250000 275000 302500 332750 366025 5
8 Insurance on time 500000 550000 605000 665500 732050 805255
 500000 550000 605000 665500 732050
9 Total working capital 0 0 0 0 0 8052550
10 Increase in w/capital 0 500000 550000 605000 665500 732050

C. Sources of Fund and Loan Repayment Schedule

The Sources of Fund of the 30 %( 1,500,000.00) will be owner equity 70%(3,500,000.00) will be
financed with Bank Loan. The loan repayment schedule will be as follows.
Yea Total Annual Remaining
Principal Payment Interest (10%)
r Payment Balance

0 - - 3,500,000
-
1 350,000 350,000 7,000,000 31,500,000
2 350,000 3,150,000 6,650,000 28,000,000
3 350,000 2,800,000 6,300,000 24,500,000
4 350,000 2,450,000 5,950,000 21,000,000
5 350,000 2,100,000 5,600,000 17,500,000
6 350,000 1,750,000 5,250,000 14,000,000
7 350,000 1,400,000 4,900,000 10,500,000
8 350,000 1,050,000 4,550,000 7,000,000
9 350,000 700,000 4,200,000 350,000
10 350,000 350,000 3,850,000 0
 FINANCIAL STATEMENTS AND PROJECTIONS

A. Profit/Loss Statement Projections

A Profit/loss projections
Years
S.n Descriptions 1 2 3 4 5
A Gross revenue 36000000 42000000 48000000 54000000 60000000
B Less operating costs          
1 Direct costs 10487500 12887500 15287500 17687500 20087500
2 Indirect costs 3146250 3866250 4586250 5306250 6026250
3 Marketing & promotion 3146250 3866250 4586250 5306250 6026250
4 General admin costs 4195000 5155000 6115000 7075000 8035000
5 Total operational costs 20975000 25775000 30575000 35375000 40175000
6 Depreciation & amortization 4600000 4600000 4600000 4600000 4600000
7 Interest expenses 1425000 1125000 825000 525000 225000
8 Total operating costs 27000000 31500000 36000000 40500000 45000000
9 Profit before tax 9000000 10500000 12000000 13500000 15000000
10 Provision for tax 30% 2700000 3150000 3600000 4050000 4500000
11 Profit after tax 6300000 7350000 8400000 9450000 10500000
12 Env & social support cost 300000 350000 400000 450000 500000
13 Net profit 6000000 7000000 8000000 9000000 10000000
14 Net profit annual average 8000000        
15 Tax annual average 4050000        
16 Payback period in years 6.25        
 Cash Flow Projections
Years
S.n Descriptions 0 1 2 3 4 5
1 Cash inflows            
4200000 5400000
1.1 Revenue 0 36000000 0 48000000 0 60000000
1.2 Equity 35000000 0 0 0 0 0
1.3 Loan 15000000 0 0 0 0 0
1.4 Depreciation 0 4600000 4600000 4600000 4600000 4600000
1.5 Recovery of assets 0 0 0 0 0 0
4660000 5860000
  Total cash inflows 50000000 40600000 0 52600000 0 64600000
2 Cash out flows          
2.1 Fixed asset outlay 45000000 0 0 0 0 0
2.2 Increase in w/capital 5000000 500000 550000 605000 665500 732050
2402500 3402500
2.3 Operational costs 0 19025000 0 29025000 0 39025000
2.4 Loan repayment 0 3000000 3000000 3000000 3000000 3000000
2.5 Withdrawal/dividend 0 1250000 1500000 1750000 2000000 2250000
2907500 3969050
  Total cash outflows 50000000 23775000 0 34380000 0 45007050
1752500 1890950
3 Inflows/out flows 0 16825000 0 18220000 0 19592950
1682500 5257000
4 Beginning cash 0 0 0 34350000 0 71479500
5 Cumulative cash 0 16825000 3435000 52570000 7147950 91072450
 0 0

Balance Sheet Projection

C Balance sheet projection

S. Years
n Descriptions 0 1 2 3 4 5
1 Assets            
1.1 Current asset            
A Inventory 5000000 5500000 6050000 6655000 7320500 8052550
B Cash on hand/in bank 0 16825000 34350000 52570000 71479500 91072450
  Sub total 5000000 22325000 40400000 59225000 78800000 99125000
1.2 Fixed asset            
A Land and building 8000000 7700000 7400000 7100000 6800000 6500000
B Machinery 30000000 27700000 25400000 23100000 20800000 18500000
C Vehicle 4000000 3400000 2800000 2200000 1600000 0
D Furniture 2000000 1800000 1600000 1400000 1200000 1000000
E Intangible assets 1000000 800000 600000 400000 200000 0
  Sub total 45000000 41400000 37800000 34200000 30600000 26000000
10940000
  Total assets 50000000 63725000 78200000 93425000 0 125125000
2 Liability and capital            
2.1 Equity 35000000 35000000 35000000 35000000 35000000 35000000
2.2 Loan 15000000 12000000 9000000 6000000 3000000 0
2.3 Retained earning 0 16725000 34200000 72425000 71400000 90125000
10940000
2.4 Total 50000000 63725000 78200000 93425000 0 125125000

D Stone crusher project firr computation

Years
S.n Description 0 1 2 3 4 5
1 Benefits            
1.1 Sales income 0 36000000 42000000 48000000 54000000 60000000
1.2 Depreciation 0 4600000 4600000 4600000 4600000 4600000
1.3 Salvage value 0 0 0 0 0 9000000
1.4 Recovery of w/capital 0 0 0 0 0 8052550
  Total benefits 0 40600000 46600000 52600000 58600000 81652550
2 Costs            
2.1 Fixed asset outlay 45000000 0 0 0 0 0
2.2 Increase in w/capital 5000000 500000 550000 605000 665500 732050
2.3 Operational costs 0 19025000 24025000 29025000 34025000 39025000
2.4 Loan repayment 0 3000000 3000000 3000000 3000000 3000000
2.5 Withdrawal/dividend 0 1250000 1500000 1750000 2000000 2250000
  Total cash outflows 50000000 23775000 29075000 34380000 39690500 45007050
3 Benefits/costs 0 16825000 17525000 18220000 18909500 19592950
4 Firr            
4.1 Npv at 25%            
  Df 1 0.8 0.64 0.512 0.41 0.328
  Pv -50000000 13460000 11216000 9328640 7752895 6426487.6
  Npv -1815977          
4.2 Npv at 20%            
  Df 1 0.833 0.694 0.579 0.482 0.402
  Pv -50000000 14015225 12162350 10549380 9114379 7876365.9
  Npv 3717700          
  Firr = 23.36%          

PROJECT IMPLEMENTATION SCHEDULE AND LAND USE PLAN

I. Project Implementation Planning Schedule

A STRATEGIC PHASE ACTIVITIES

The project feasibility study and strategic planning management document shall be distributed to
all potential stakeholders such as concerned members of the family, government institutions and
to selected financer with a view of creating satisfactory exchange of views and promote shared
understanding in advance.

During the project formulation and establishment phase, the following major tasks are required
to be successfully accomplished.
Registration, licensing and acquisitions of operations commencement authorization permit
Appointment of strong implementation team
Acquisitions of construction permits
Preparation of every legally required document
B PROMOTION AND FUND RAISING
To prepare promotional strategic planning mgt guidelines
To prepare promotional ideas, materials, logistics and facilities
 To conduct promotional tasks and build strong constituency of support
To evaluate the process of promotion and progress
To prepare fund raising strategic planning guideline
To assess and identify major project donors
To assess and identify the interests, rules, regulations and conditions of targeted and prioritized
financers
To prepare all necessary requirements of financers and apply for fund
To undertake follow ups and secure fund

CONSTRUCTION PHASE ACTIVITIES

Commissioning construction works
Site development and construction frame conditions preparation
Conducting building and construction works
Plant installation and erecting
ORGANIZATIONAL BUILDS UP
Establishing and organizing project office
Preparing project working and administrative systems and procedural guidelines
Commissioning construction and plant installation activities
Purchase of all on and off site durable and consumer goods
Staff recruitment, orientation and employment
To conduct pre operational trial runs, checking the validity of all activities and commencing
operations

  Eebla dimension stone project implementation planning schedule

Implementation period
S.n Descriptions Inception Completion Total time Actor
1 Strategic phae activity        
1.1 Study team appointment 1/1/2017 31/01/2017 1 month Promoters
1.2 Survey and study works 1/2/2017 30/04/2017 3 months Study team
1.3 Review & appraisal 1/05/ 2017 31/05/2017 1 month Promoters
1.4 Investment decision 1/6/2017 30/06/2017 1 month Promoters
  Sub total 1/1/2017 30/06/2017 6 months  
2 Company formulation    
2.1 Appointment of impl/ team 1/7/2015 31/07/2017 1 month Promoters
2.2 Registration & licensing 1/8/2015 31/08/2017 1 month Impl/team
2.3 Acquisition of certificate 1/9/2015 30/09/2017 1 month Impl/team
2.4 Fund raising 1/10/2015 31/01/2018 4 months Promoters
  Sub total 1/7/2015 31/01/2018 7 months  
3 Construction activity    
3.1 Purchasing process 1/02/2016 31/05/2018 4 month Promoters
3.2 Land development 1/02/2016 /04/2018 3 month Contractor
3.3 Building & construction 1/05/2016 30/09/2018 5 months Contractor
3.4 Installation & erecting 1/10/2016 31/11/2018 2 months Contractor
  Sub total  
4 Organizational builds up    
4.1 Admin systems dvt 1/12/2016 15/12/2018 15 days Consultants
4.2 Working systems dvt 1/12/2016 15/12/2018 15 days Consultants
4.3 Furnishing & staffing 16/12/2016 31/12/2018 15 days Promoters
4.4 Preoperational trial runs 16/12/2016 31/12/2018 15 days Impl/team
  Commencement on or before 01/01/2018    

MARKETING IMPLEMENTATION STRATEGY

Marketing strategies that would enable to win the favors of customers over existing and potential
competitors and would help in attaining customer satisfactions in the back ground of the
changing marketing environments are believed to be important factors to ensure long term
survival, excel competition and develop customer confidence and loyalty at large., To this effect
it is pertinent to design and develop appropriate and sound marketing strategy.
DEVELOPMENT OF SOUND BUSINESS PHILOSOPHY
The world has experienced four business philosophies ever since the emergence of business
practices. The production, sales, customer oriented and societal satisfaction business
philosophies have had practiced during different eras. According to the findings of much
marketing research works conducted on various business philosophies, Customer orientation and
societal satisfaction business philosophy has found out to be the foundation of sound marketing
strategy up on which all other strategies orchestrate. This business philosophy is entrusted in
putting the problems, needs, requirements, rights, interests and benefits of customers and the
society within which business enterprises operate at the center of planning and decision making
process and orienting all level staff of the business enterprises to comply and apply the principles
and practices of this business philosophy
It is neither possible nor expectable to achieve marketing management efficiency and
effectiveness without outstanding application of the business philosophy which obtained global
momentum and universal acceptance. Thus, strong belief and commitment to customer
orientation and societal satisfaction business philosophy is believed to be among the most
important frame conditions which should/must be employed and followed as a guiding principle

OUTSTANDING USE OF STRATEGIC PLANNING MANAGEMENT

The world in which we live and operate business is in a dynamic changes and developments.
These changes and developments are inevitably resulting in changes and developments in the
entire marketing environments. Changes and developments in marketing environments may
generate markets and marketing opportunities/challenges. Thus, continuous and process oriented
analysis of the patterns of changes and developments in marketing environments, pinpointing
marketing offers and challenges and designing and developing sound strategic fit which would
enable business enterprises to optimally benefit from change offers and to successfully deal with
challenges is believed to be important frame conditions to maintain survival in the changing
world.
DEVELOPING MARKETING ORGANIZATIONAL CAPACITY
Sound implementation of marketing strategy requires existence of marketing organizational
capacity. To this effect, structural, leadership, human resources and working and administrative
systems are among the most important capacity indicators which cannot be deferred.
Existence of clearly identified and defined marketing vision and mission statements
Creating satisfactory exchange of views and promoting shared understanding among all
company staff

Existence of compatible marketing organizational structure, fully staffed and operational

Existence of clearly identified and defined duties and responsibilities, lines of communication,
reporting and information flows among marketing staff and functional units
Existence of capable and committed leadership and marketing professionals
Existence of marketing working and administrative systems and procedural guidelines etc are
crucial implementation strategies which should/must be employed
CHANGE MANAGEMENT IMPLEMENTATION STRATEGY
In connection with the application of the project strategic plan, certain changes are inevitable and
these changes may take place in a continuous/discontinuous process. The fact that all types of
changes must result in supportive, adverse or neutral effects ,necessitate management needs to
identify and understand the types and impacts of each planned changes, to be able to benefit
from change offers and deal with the challenges of changes.
In general transformational, transactional, transitional and incremental changes in the project
work flow process organizational culture and behavior are expected to occur both at strategic and
operational dimension. The impacts of all of these changes should be managed in favor of the
project at large
The following major implementation strategies are proposed to manage these changes.
WORKFLOW PROCESS MGT
This is a targeted economy of scale process intervention, aimed at attaining cost minimization,
profit maximization, efficient service delivery and customer satisfaction. To do this it is pertinent
to understand the dynamics of project realities in the changing world. To change the workflow
process to desirable small scale the following implementation strategy are proposed.
 To undertake a detailed task analysis and determine the condition, process and
time phase out for each task.
 To determine the resource requirements, availability quality magnitude and cost.
 Determination of technology and system requirements
 Determination of skill, profession and experience requirement
  To design and develop strategic fit and incorporating human resources into
system integration.
 Acquisition of top management support.

CULTURAL CHANGE MGT

Change in organizational culture refers to change in project belief, values, strategy, purpose and
expectations. Conducive conditions to cultural changes proposed are.
 To create appropriate environment for team work, process focus, action oriented
and low level decision making.
 Outstanding and effective trial of many alternative tools and techniques and
selecting the most appropriate
 Concrete products the skills and competence of management and staff
 Setting standards to measure performance
 Analysis and initiating corrective measures.

C BEHAVIORAL CHANGE MGT

Organizational behavior refers to employees individual and collective behaviors. The most
challenging task is to manage employees’ behavior towards the success of desired changes.
The following strategies are proposed for project organizational behavioral change
implementation and management
 Involving employees in planning and decision making process.
 Promotion of rewarding and incentive system.
 Promotion of employee career and skill development operational plan
 Avoiding under/over employment

 Promotion of transparent, accountable and non discriminatory data based

decision making practices
 Provision of clearly defined job description, evaluation, lines of authority and
responsibility as well as lines of communication and information flows.
 Provision of management and leadership support and guidelines.
STAFF MOTIVATION STRATEGY
Experiences has demonstrated that the most difficult and resistance to organizational
transformation and improvement process is the behavior of employees, unless employees are
properly managed motivated and participated in the process the efforts of achieving planned
objectives would carry meaningless. Moreover, the fact that there are various knowledge skill,
experience dedication commitment sense of ownership belongingness moral ethics honesty,
reliability etc. among employees there exist differences in their effort contributing and
performance results. Employees contributing extra efforts and time require recognition need
reward and development. Because recognition, reward and development;
 Motivates people to perform better
 To develop their skills and competence
 Delivers the importance of performance and competence
 Justifies fairness and equitability of reward according to performance, contribution
and competence. Accordingly performance related pay
 Competence related pay
 Coaching and counseling project are planned to be introduced
The following major principles and procedures are selected for successful achievement of staff
management and development objectives.
Understanding that human resource is among the most important and determinants of project
success
Understanding that labor cost accounts more than 50% of project operating and over heads
Understanding that, human behaviors are the most difficult to mange and resistant to change.
Understanding that human beings are rational, conscious, and have the right to determine their
fates in their best interests
Understanding that there might arise interest conflicts between staff and the project and that
attainment of interest par to optimality is the best tool to resolve interest conflicts
Realizing that there are significant differences among staff in terms of objectives, belief,
commitment, capacity, skill, experiences, tests, preferences, sense of ownership, belongingness,
motivation, etc and all these factors have significant impacts on both staff and the project
Understanding that the world is in a dynamic change and developments and that there are
germinations of the seeds of competition in all terms
Understanding that, proper management and development of project human resource is, among
the most important focus areas, to be able to maintain survival, in the present day, changing
world.
In view of the above facts, searching into ways of, proper management, development and
retention of human resources and maximizing mutual benefits from optimal utilization of this
key available resource is believed to be second to none strategic option which should not be
deferred.
PERFORMANCE MANAGEMENT STRATEGY
The success /failure of any planned objectives should be known with certain degree of accuracy.
To this effect all activities, resources process and output should be monitored evaluated and
controlled timely and regularly. To undertake monitoring, evaluation and controlling activities
timely and regularly there should exist.
Clearly identified and defined description of planned objectives, outcomes output and inputs.
Eistence of, Sound, and appropriate, indicators, which show, the success/failure, of the planned
objective outcome, output and inputs used.
Appropriate source and means of verifying that the planned, objective outcome, output and
inputs were in accordance with /deviated from the planned.
Clearly stated important assumption with/without which the planned objective would /would
not be successful.
The role and significance of monitoring evaluation and control are briefly described as follows.
MONITORING
Monitoring is a continuous and process oriented information gathering ,and data mining on what
has happened, who did it, when, how much, for whom etc aimed at measuring the magnitude,
time quality and impacts of the initiative. Monitoring helps to compare the input human, material
financial etc output product/service result and the outcome (achievement against the planned
tasks. Effective monitoring must be completely integrated into all tasks. Existence of sound
monitoring system, enable organization to make appropriate and timely decision making and
ensures transparency and accountability.
EVALUATION
Evaluation is the process of analyzing information and data gathered during monitoring process.
The evaluation system helps to think critically and search into ways of achieving desirable
results. It is a periodic process of reviewing monitoring data and drawing sound conclusion from
it. Good evaluation system enables organization to analyze the pre and post patterns of existing
and future plans and search into ways of achieving desirable results.
CONTROL
Control is a managerial process of detecting errors of principles system, procedures etc aimed at
avoiding resource miss allocation un employment, fraud, wastage and all other misfortunes
which hinder the success of planned objectives. Control enables organization to continue their
production of goods /products without jeopardizing internal and external resources for better
future. Thus, an integrated monitoring and evaluation system in a single whole enables
organizations to optimally benefit from available resources through satisfaction of existing and
potential customers in their best interests.
The monitoring evaluation and control system should be designed to serve both the strategic and
operational phases. The monitoring evaluation and control system designed for both strategic and
operational phases are described as follows.
This is a continuous and systematic monitoring evaluation and control of the validity of basic
assumption under which it operates. Thus, a regular and continuous proactive check against the
validity of planned strategy aimed at changing or improving the condition of vital assumption...
Performance management and control is a managerial process of designing and developing
sound indicators, parameters, means and sources of verifications necessary to measure activities,
resources, process and output of individuals, groups and institutions against the targeted
standards and come up with logical results which would help to make sound decisions. Although
there are numerous areas whose performances are needed to be well managed and control, the
most important areas and performance management indicators used in laundry and dry cleaning
business are briefly identified and described as under.
Operational control strategy is designed to guide monitor and evaluate the progress of all planned
activities against their respective planned objectives in meeting targets representing the planning
horizon. Accordingly all planned activities shall have the following basic system to be used as a
monitoring evaluation and control mechanisms.

D PERFORMANCE MGT MATRIX

Components of Narrative description
 Objectives
 Outcome
 Out put
 In put
Indicators that show
 Objectives have been achieved
 Planned outcome has been attained
 Desired output has been obtained
 Inputs are properly allocated and employed in all terms
Source and means of verification
Relevant means and source of verification shall be clearly identified and employed. Accordingly;
 Strategic planning documents
 Audit report
 Field visit and on site survey
 Past data etc shall be used
 Proposed performance management matrix

S.n Narratives Indicators Verifications Frame conditions

1 Objectives Less, = or greater Feasibility study Objective change
2 Out comes Impact Strategic plan Policy change
3 Out put Magnitude M & e report Transformation
4 Inputs Qty/quality Audit report Termination