Strategic Business Plan
This document comprises a strategic plan for WORKMANSHIP
PRODUCTION LIMITED. It reviews its strengths, weaknesses, threats and
opportunities; presents a series of fundamental statements re lating to
WORKMANSHIP PRODUCTION LIMITED vision, mission, the business, risks,
values and objectives; and sets out WORKMANSHIP PRODUCTION LIMITED
proposed strategies, goals and action programs.
Workmanship production limited is a company registered under the
companies act in Kenya. We offer long haulage transport services in the
East African market (6 countries).
The demand for our services indicates that there is a limited supply of
road transportation services. Our customers include: Firstly, we have
managed to introduce ourselves to a network of clients who use
Mombasa Port as a hub for receiving imports. These clients need
transportation of their goods to countries like Sudan, Uganda and the
Congo. Secondly, we have a contract with the Government of Kenya which
is currently focused on Rural Electrification for the next ten years hence
the demand for transportation of electricity poles across the country.
Thirdly, we also have AID agencies that are currently mitigating the
famine situation which is forecasted to run for the next 12 months as
well as the regular annual flooding in Western Kenya.
The market is robust for our services in light of the Kenya Railways
Corporation inability to satisfy this huge transportation need due to the
age of the century old rail network. Workmanship Production Limited on
the other hand aims to guarantee economical, safe, secure and timely
land freight services.
Initial Capital for rollout was contributed by the two shareholders and an
Asset Based Finance loan from a local bank which is payable in five years.
To be the Premier land freight solution company for the East African and
II. Mission Statement
Workmanship Production Limited aims to effectively and efficiently
become a heavy commercial transportation and/or distributor of choice;
determined to achieve customer delight with all our clients.
III The Business:
1) Marketing and Sales
Product – We offer a superior long haulage trucking service for both loose
and containerized bulk cargo.
Pricing Structure – This is based on the formula:
Km * tonnage * Kshs 6 (USD 0.08) = Cost of Transportation
Areas of exception will include:
Transport in areas of high risk where the overall cost may increase
due to additional costs of security, insurance etc.
Negotiated discounts with Repeat business clients, long term
business contracts etc.
Place (Market) – Our market segment is the greater East African regions.
The port of *Mombasa is the life line for imports and exports of loose
and containerized bulk cargo for Kenya, Uganda, Tanzania, Congo,
Rwanda, Burundi and the Sudan. In addition the industrial and
manufacturing hub in Nairobi, Kenya produces industrial/consumer good
that is sold throughout the Comesa region.
* After Durban, the port of Mombasa is the second largest African port
averaging 14 Million tonnes annually.
Promotion – Our strategy is more of but not limited to below the line
advertising because transport is a niche market. They are the most cost
effective strategies that are guaranteed to reach the target Market. They
Sending introduction letters to Shipping Lines and other potential
Branding of Trucks
Adverting in Transport Magazines
2) Company Structure
WORKMANSHIP PRODUCTION LIMITED is solely owned by its two
directors: Simon Matiri Munene and Monica Sumbi-Matiri.
WORKMANSHIP PRODUCTION LIMITED has been financed through: equity
capital from its two directors and an Asset Based Loan from a local bank:
Kenya Commercial Bank which is payable in 60 months.
WORKMANSHIP PRODUCTION LIMITED is currently managed by the two
Directors, together with a qualified Administrator/Accountant who
oversees the maintenance of the cashflow among other administrative
WORKMANSHIP PRODUCTION LIMITED is a limited liability company
registered under the Companies act of Kenya.
CHIEF EXECUTIVE OFFICER
Figure 1: Organogram
3) Risk Analysis
This key strengths, weaknesses, threats and opportunities of
WORKMANSHIP PRODUCTION LIMITED now and in the foreseeable future:
Basis for strong
management team Bad driving attitudes that
Key first major customer increases fuel usage and
acquired damage to the Vehicle
Well-rounded and managed Theft of truck fuel and
business vehicle parts by some
Realistic and focused drivers
Business Plan Over dependent on
Partial Financing from borrowings - Insufficient
Business Owners cash resources
Knowledge of the Market Board of Directors is too
Availability of business Overdependence on few key
mentors already in the staff
Competition from Industry Viable business with good
Players profit margins
Cost of spare parts Export markets offer great
Rising fuel costs potential
Market may become price Market segment is poised
sensitive for rapid growth through
Economic slowdown could diversification and growth of
reduce demand fleet
Bad Road Infrastructure Collapse of the Rift Valley
Security of Cargo in unstable Railway
countries like Congo and Governments regulation in
Southern Sudan the region have created
greater capacity in reducing
the axle load weight (28
tonnes per truck)
Steady growing demand of
Services from neighboring
countries as a result of
Workmanship Production Limited recognizes that transportation is a high
risk and high return undertaking. With in mind the management plans to
put in place measures to mitigate risks within its control.
1. Mechanical break downs:
Scheduled service intervals for all trucks
2. Loan liability
Timely scheduled installment payments
3. Insufficient Cash Resource
We limit the credit period to be not more than 30 days
4. Low Demand due to economy
Diversification into specialized transportation: oil tankers,
bitutainers for bitumen, low loaders for bulk equipment
5. Competition from Industry Players
Applying the co-operative money principle by bidding for contracts
and sub-contracting the business to other truckers/competitors.
III. Major Goals
The following key targets will be achieved by WORKMANSHIP
PRODUCTION LIMITED over the next 3-4 years:
1. Achieve annual sales of KSH 15 million for each truck by close of
2. Report annualized profits of KSH 1.5 million in 2009 per truck,
3. Secure 15% of the entire East African market segment by 2015
4. Become a significant player of the freight industry in 6 countries
within 5 years.
Income per trip Monthly (5 trips) Annual
Income 148,707.00 743,535.00 8,922,420.00
Less Expenses -
Fuel 42,700.00 213,500.00 2,562,000.00
Allowances 4,000.00 20,000.00 240,000.00
Driver 4,800.00 24,000.00 288,000.00
Office expenses 25,000.00 300,000.00
Salaries 100,000.00 1,200,000.00
Loan payment 193,150.00 2,317,800.00
Others 2,000.00 10,000.00 120,000.00
Total expenses 53,500.00 267,500.00 7,027,800.00
Less tax 37,176.75 446,121.00
(Kshs) 95,207.00 438,858.25 1,448,499.00
USD $5,851.44 $19,313.32
Figure 2: Cash flow projection for local travel for current truck
IV. Key Strategies
The following critical strategies will be pursued
by WORKMANSHIP PRODUCTION LIMITED:
1. Accelerate acquisition of the 14 trucks and trailers within the next
2. Source for additional capital for expansion through investors.
3. Introduce Marketing Strategies for brand awareness.
4. Recruit experts to handle management: accountant, three
mechanics and an administrative secretary.
5. Recruit non-executive directors.
6. Strengthen human resources function and recruit additional drivers
and driver assistants.( A total of 28 staff)
7. Strengthen our existing market and aggressively continue to
penetrate the markets outside Kenya, Uganda, Tanzania, Burundi,
Rwanda, Zambia, Zimbabwe, East Congo and South Sudan.
The following important strategies will also be followed:
1. Identifying a business premise (negotiation ongoing).
2. Market Research and Development.
3. Develop East African market entry plans through strategic
4. Develop support for driver training and e valuation policy
5. Proper Management of internal cash flow and other external
sources to fund all future growth.
6. Establish sales offices using agents in 6 key East African markets
Year Truck Model Trailer Specs Cost (Kshs) Cost (USD)
2009 Mercedes Axor High Sided Trailer 7,300,000 97,333
2010 Scania R114L Oil Tanker Trailer 7,300,000 97,333
Mercedes Axor High Sided Trailer 7,300,000 97,333
2011 Scania R114L Oil Tanker Trailer 7,300,000 97,333
Mercedes Axor High Sided Trailer 7,300,000 97,333
Scania R124L High Sided Trailer 7,300,000 97,333
TOTAL 43,800,000 583,998
Figure 3: Action Plan
V. The Entrepreneur
WORKMANSHIP PRODUCTION LIMITED is registered with two directors.
The entrepreneurs have not only invested financially but have spent the
last 18 months carrying out Industry Market Research and Analysis.
The directors are therefore very passionate about the freight industry and
consider it a viable investment endeavor.
Simon Matiri Munene
Education : Bachelor of Arts –Communication
Professional Experience: Ten years in international TV journalism
covering stories in the African continent. This involved freighting
equipment to different African countries.
Lived and worked in Nigeria for two and a half years. Extensively travelled
in the East African region and have developed business contacts in Kenya,
Uganda, Rwanda, Burundi, East Congo (DRC), South Sudan and Angola.
Monica Sumbi- Matiri
Education : Bachelor of Education - English and English
Master of Art – Leadership (Specialization:
Business & Entrepreneurship)
Professional Experience: Has experience in wholesale charcoal trading,
sold bulk maize grain (popcorn) to leading supermarkets and movie
theaters and managed an edutainment centre for children complete with
Senior management positions in several organizations. These include
Steadman-Synovate (the leading research firm in sub Saharan Africa),
Station Manager with Hope FM (a leading Christian radio station with an
international reach via the internet).
Compensating areas of Growth
Simon Matiri Munene
Lacks management and financial training but is willing to learn and enroll
for formal training. The CEO has identified key staff to fill management
positions and filled them up with qualified personnel. E. g. Hiring of an
experienced accountant and working closely with Monica who has
previous management experience.
Strategically using salaried employment as part of continued investment
into the business. Monthly injecting Kshs 150,000 (USD 2000) as working
capital. I plan to phase out of employment in three years maximum, or
less with increased growth/management demand.
Monica Sumbi - Matiri
Has been engaged in full-time employment and therefore starved the
business time and concentration.
Strategies are in place to leave full time employment end of April 2009 to
focus on the business.
VI. Strategic Action Programs
The following strategic action programs will be implemented:
1. CEO: Prepare comprehensive business plan and develop contacts to
raise Venture Capital within 6-9 months.
2. DIRECTORS: Identify the Operations Manager and other key staff for
marketing/sales and accelerate driver recruitment with arrival of
3. DIRECTORS: Review Asset resources and scope for technical
alliances - expand with arrival of VC.
4. BOARD: Expand Board of Directors to include further independent
financial, technical and industrial expertise prior to seeking VC.
5. ENTIRE TEAM: Implement strategies.
WORKMANSHIP PRODUCTION COMPANY LTD contact list:
1. Director: Simon Matiri Munene
2. Director: Monica Sumbi-Matiri
P.O.BOX 3O349 (00100)