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									             Strategic Business Plan
                                 for
       WORKMANSHIP PRODUCTION
                            LIMITED

     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.
Executive Summary
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.
 I.       Vision
To be the Premier land freight solution company for the East African and
COMESA region.




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
will include:

      Sending introduction letters to Shipping Lines and other potential
       clients
      Brochures
      Branding of Trucks
      Adverting in Transport Magazines




          2)    Company Structure
Ownership

WORKMANSHIP PRODUCTION LIMITED is solely owned by its two
directors: Simon Matiri Munene and Monica Sumbi-Matiri.

Financiers

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.
Management

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
duties.

Legal

WORKMANSHIP PRODUCTION LIMITED is a limited liability company
registered under the Companies act of Kenya.


                    CHIEF EXECUTIVE OFFICER




                         DIRECTOR:
                         ADMINISTRATION &
                         FINANCE




                           ACCOUNTANT/
                           ADMINSTRATOR




          DRIVER(S)                         ADMINISTRATIVE
          DRIVER                            SECRETARY
          ASSISTANT(S)




Figure 1: Organogram
         3) Risk Analysis

SWOT ANALYSIS:
This key strengths, weaknesses, threats and opportunities of
WORKMANSHIP PRODUCTION LIMITED now and in the foreseeable future:

              Strengths:                           Weaknesses:
       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
        Dynamics                           narrow
       Availability of business          Overdependence on few key
        mentors already in the             staff
        business



                  Threats:                     Opportunities:


       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
                                                  development.


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.




Mitigating strategies:

   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
       2009
   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.
       Mombasa-Nanyuki Sector

                           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

                                                 -
       Net income
       (Kshs)              95,207.00             438,858.25          1,448,499.00

       Conversion to
       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
      5 years.
   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
      alliances/partnerships.
   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
      before 2011.
       Expansion plan


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.
CEO

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.


Directors

Monica Sumbi- Matiri

Education               : Bachelor of Education - English and English

                        Literature option

                        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
a restaurant.

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
      VC.
   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.




Contacts
WORKMANSHIP PRODUCTION COMPANY LTD contact list:

  1. Director: Simon Matiri Munene
  2. Director: Monica Sumbi-Matiri

Tel: +254-770241477
         -736880707
         -723695135


P.O.BOX 3O349 (00100)
Nairobi, Kenya


info@workmanship-group.biz
simon@workmanship-group.biz
monica@workmanship-group.biz

								
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