Page 84 - Bisiness Studies_Form_3

Business Studies for Secondary Schools

buy broiler chicken from QCS. Given the high quality of chicken and services provided
by QCS, we expect to build customers’ trust, resulting in the spreading of positive
messages to other potential customers through word-of-mouth promotion.

Operations plan
The business will be located in the Mtakuja area. The key activities will be the
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commercial rearing of the chickens in the coops freely provided by the family of one
of the partners. There are no initial investments needed in physical infrastructure, as
the coops are already in place. The benefits of locating the business in this area include
proximity to many food vendors, and the area is mostly free from hazards such as
burglary and natural calamities such as floods.

Management and organisation plan
QCS will be managed by Mosi and Mei, who will employ two people to support them
in caring for the chickens and distributing them to customers. The two employees will
be paid monthly wages. Employee incentives will include breakfast and lunch. Mei
will also be working full-time for the business and will be entitled to a monthly salary.
QCS’s organisation structure is shown in Figure X1.

Partners

Manager
Manager

Administrative Operations
Officer Officer

Figure X1: QCS’s Organisation structure
Financial plan
Considering the sales projections as well as anticipated operational costs, the financial
projections for the first three consecutive years of QCS show that the business will
provide partners with profitable returns. Table X2 provides a simplified projected
income statement. It shows that QCS estimates to make profits of TShs 1,302,000,
TShs 2,449,000, and TShs 3,937,000 for three consecutive years, respectively.

Student’s Book Form Three 76