1. INTRODUCTION
The business name: SPORTS MARKETING AND SPONSORSHIP LIMITED,
NKUHUNGU, DODOMA PLOT NO: 213-330 KITALU A,
P. O. BOX 718, Dodoma
Entrepreneur details: Mr. MAHESABU MFANYABIASHARA
KISASA, DODOMA PLOT NO 543
P.O. BOX 718, Dodoma
NATURE OF THE BUSINESS
The business deals with swimming games in specific. It has an Olympic sized swimming pool and always sponsors swimming competitions at a national level or more. The main reason for the registration of this one portion of the whole business as a separate entity is due to the ability of the swimming pool to be an outstanding feature in the central zone. The only swimming pool that is used both for leisure and sports games at once with a stage that can hold 600 seated people at ago. As a special service provider in the whole of central provinces of Tanzania the business is the only one, one of its kind and has notably been appreciated nationally.
THE OWNERS GOALS FOR THE ENTREPRENEUR
The owner’s goals are quite different from the goal of this special entity. As the Hotel owner he aims to:
· Earn him a lot of profits from his Hotel
· Have his net-worth increase
· Promote his business and renovate it to be a five star Hotel(long run)
THE OWNER’S GOALS FOR THE ENTERPRISE
The owner’s (share holders) goals are that:
· The new entity survives the perilous waters of the entrepreneurial sea over first five years.
· That it makes profits sufficient to support its own operation.
· Build an International stadium and hold Olympic swimming games
FINANCING
The business has one million shares (1,000,000) with a value of one thousand two hundred only each (1,200). The total share capital is one billion two hundred million only (1,200,000,000.00) . Out of the total share capital of the business the total of fifty six percent are from the owner of the whole hotel the rest are divided as follows
Mr. CHALII MAPESA 29%
Mr. MAGORO SONGORO 15%
2. EXECUTIVE SUMMARY
DESCRIPTION OF THE BUSINESS CONCEPT:
The business is a creative idea that came from the son of the hotel owner. One of the aspirations of Mr. Mahesabu was to create a nice hotel with a fully loaded Olympic sized swimming pool. The Hotel was completed one year after commencing the date of the Business plan submission. Having the Hotel erected the owner employed his son a Business Administration Degree holder from Saint John’s University of Tanzania. The son then through brainstorming he formed this company as a separate entity and sold 56% share to his father so that the company can own the swimming pool partially sharing it with the former “THE NEW DIAMOND GRAND HOTEL.”
DATA TO SUPPORT THE BUSINESS OPPORTUNITY
The concept has more strength and opportunities than the weaknesses and threats. The following are a few Facts that will prove this statement.
ü There are five colleges in Dodoma region.
ü The average number of students are eight thousands students
ü Competitions are held annually
ü There are more than forty primary and secondary schools in the region
ü The average number of students is 1 thousands
ü Each category of completion is sponsored to take place for two consecutive months. Universities on their own, secondary school on the own, primary schools on their own and finally the ordinary competition for eighteen years and above on its own.
ü This is the only facility its kind in the Central region.
ü The population of Dodoma, Tanzania is 180541 according to the Geo Names geographical database
ü All the above are showing the availability of markets
HIGHLIGHTS OF THE FINANCIAL RESULTS
The management has its focus on the increase of the net-worth through publicity and public relation. The share capital will be paying a dividend of not less than 50% of the total earnings so as seduce investors to buy more shares.
The net-worth is aimed at increasing by fifteen to twenty five percent annually. This therefore is a projection that the company will grow rapidly.
Within the first two years the company has aimed at drawing a good will of 1 billion from its good-publicity. The first forty percent in the year of commencing interschool competition sponsorships and the rest in second year planned to sponsor inter-collage and street competitions.
3. ENVIRONMEMENTAL ASSESSMENT AND INDUSTRIAL ANALYSIS
ENVIRONMENTAL ANALYSIS
Ø Political factors:
The National assembly is located at the city and therefore when the parliament is sitting usually there are high fluctuations of demand recreational facilities Such as this swimming pool. Therefore during those months the business will not be conducting competitions through sponsorships at all.
All competitions held through Coaches and facilities will be paid for highly. That means that at the two seasons equivalent to four months in a year there will be premium rates to use this facility.
The business must register with the registrar of companies before the license is issued.
There is high compliance with the facilities and the new company because the major share holder is an experienced and compliant businessman
The Safety of the people or participants is guaranteed because the hotels coach has a full time rescue team using the latest rescue equipments and first aid kits
Ø Economic factor
Most residents in Dodoma earn an average income; this will have negative impact to the business because the sport will be slow moving. This will be dealt with in the pricing strategies.
However this economic condition of the residents is a challenge because the company will be able to harvest a reputable Goodwill at a cheap cost.
Ø Social cultural factor
People in Dodoma have not been used to pay for swimming. There is however a lot of potential customer to these new product customers has been spotted in a small pool at Mirembe. There is overwhelming demand there especially during weekends.
The province however has been exposed to a lot of competitions and have been challenging at national level in football. This shows a good trend for support will be there for competitions.
Ø Technological factor
The Olympic sized swimming pool is an investment that used the most recent equipment from scratch. Everything that is operational to the pool is electronic from: Pool cleaning, Water sterilizing, time counting, acid neutralizing and even the rescue boats use electric charge.
INDUSTRY ANALYSIS
Ø Industry demand Trend
In the past ten years the industry had only one firm that was Mirembe camp site
Five years ago another later another one was built at Dodoma Hotel
Today the industry is comprised of four firms. Three have been built already (including this one) and one is on completion at the Royal village.
This shows that there is surfacing of competitors because the demand is growing rapidly due to increasing population in Dodoma when the collages are in the study years.
The competition is now very stiff and every other day the rest of the entrepreneurs are forced to use the loss leader strategy so as to attract consumers
The main aim of the company is not to be the lower priced facility but the quality and variety leader. That is why the Hotel has its own coach who can train customer how to swim and holding competition
Therefore apart from better facilities and additional services the industry demand trend seems to need a superb sense of recreation and even more of such facilities
Ø Demand for Products
Because students have been admitted from different walks of life and from very different places this intermingling has formed the sharing of interests and therefore even the local people have started developing the interests to swim. This is because of their counterparts who come from all over the country.
Training facilities are not provided professionally here therefore the company will enjoy the monopoly market for this service.
Ø Competitiveness of the company and the Entrepreneurs
| FACTOR | COMPANY | ENTREPRENEUR |
| STRENGTHS | The coy has a good capital budget | Owners are highly experienced. |
| WEAKNESS | The distance to the Hotel is the furthest from the city centre than any other facility | They are highly motivated by profits |
4. DESCRIPTION OF THE BUSINESS VENTURE
The venture offers:
· Gymnastics
· Massage
· Swimming Trainings
· Swimming competitions
· Styles and barbershops also salon
· Hotel accommodation
· Entertainment
The SIZE of the business is a medium enterprise
The personnel required mainly are the manager and the coordinator.
Manager’s responsibilities are to: 1.plan 2. Control
The coordinator’s task is to: 1.Organize plans 2. Structuring strategic move towards goals
Other staff of the pool has been employed by the hotel management including Coach, rescue team members, body guards and guards
Background of an entrepreneur
Mr. Mahesabu is a son of Tax collector. He’s father of four; two boys, two girls he dedicates eight hours of his life in his Businesses and the other sixteen is for rest with his family. His son has graduated and joined his businesses as well. He is quite successful as it is said.
RESUME
Certificate in entrepreneurship: (1978) Institute of Development and Management
Certificate of secondary school Education: (1977) Mawenzi secondary School
Worked with Hilton Hotel as the chief Accountant for seven years (1980-1987)
Worked for Double tree Hotels as Chief financer (1988-2000)
Entrepreneur 2000- to the minute
History of the business
The business was founded by great grandparents after their retirement. They gave out money to start a business that will feed them because their working age had passed. The main reason why the business has had continuity is that the parents passed ownership of these businesses in their wills to their children. This has repeated several times where sons work elsewhere but as parents got older and pass away they come to run the business that parents started. However this time history has been ridiculed, a fresh from school has joined in the business early. He has expanded the business to extend that part of its activities are an independent registered entity carrying out activities that had no chance in the past. He moves forward and prepares a plan of this diversification and claims to go global in five years. This awards him a “Senior Managing Director” post in the overall hotel management.
5. PRODUCTION/OPERATIONAL PLANNING
Production Plan
The company is aiming at producing swimming stars from the swimming competitions. The raw materials are the students who come to practice daily in our waters. The students are trained not only swimming but also the styles which are less breath taking but faster in movement. A student who has practiced for at least a year following a regular time table can do marvelously when it come to competitions.
Operational Plan
The business renders a service to its customer and regularly rewards its customers with various sponsorships and rewards to winners. Training order form can be filled on the web or at the desk and after paying an amount at the bank the customer is given a set of exercise and a lot of time tables. That is the path to a star here.
6. MARKETING PLAN
The Market conditions
There are truly no such stars here In Dodoma.
The strategies
ü to create such true stars
ü to fix their names on national board
ü to compete with the stars from coast
ü To compete with other international stars
PRODUCT
Swimming skill
The knowledge and exhibition of it
The leisure it comes with
PRICE
Affordable charge will be placed for member ship and training
PROMOTION
The main kinds of promotion that will be used is publicity and public relation through the sponsorships.
Another method that will be used is Billboards that will take our advertising to new heights. However this will be done from the second financial year.
The manager has also strategized for a meeting with taxi drivers in town for a lunch so that the drivers in town also have a chance to know the location of this facility.
The other kind of promotion is that of car stickers. This will be done on Commuter buses and the taxis too.
In third financial year Radio advertisement will be used.
PLACE
Since the facility is immobile the director’s and manager’s decision to use high level advertisement will have created mobile premises where our products and information will be scattered. For example the billboards located at the bus stand and Jamhuri stadium will offer visible images and services information offered at the facility.
Also Taxi drivers are like our sales representatives getting a commission for each customer they get to the facility
The car stickers are also out for testing. This is because their impact has not yet been known.
7. SWOT ANALYSIS
Competitive factors from inside and outside the organization compared to the current competitors and expected ones.
Strengths:
Ø The facility is the only one of its kind in the whole of Central province
Ø It is a perfect point for both recreation and relaxation
Ø It is inviting to have a day out here even if there are sports
Ø The centre is also meant for styling
Ø Reasonable prices are given to the quality service packages
Weaknesses:
Ø The pricing is higher than all the competitors, the average people would hardly afford
Ø Water supply is also in question in terms of consistency
Ø Advertisement budget is still limited
Opportunities:
Ø There is a vast market from learning institutions
Ø Chances are that the sport will take lead above football in a short while
Ø Visitors have been demanding more of this facility
Ø Plans to construct two more universities in the region will increase the demand
Ø Dodoma will soon be a business centre therefore prices will be affordable
Threats:
Ø Malicious competitors may come out to renovate their centers
Ø The possibility of losing lives may damage the business reputation
8. ORGANISATIONAL PLAN
The type of the business is a limited company with three share holders namely:
Mr. Mahesabu Mfanyabiashara 56% (title: The Chief Executive Officer)
RESUME
Certificate in entrepreneurship: (1978) Institute of Development and Management
Certificate of secondary school Education: (1977) Mawenzi secondary School
Worked with Hilton Hotel as the chief Accountant for seven years (1980-1987)
Worked for Double tree Hotels as Chief financer (1988-2000)
Entrepreneur 2000- to the minute
Mr. CHALII MAPESA 29% (title: Manager)
RESUME
Advanced Diploma in Marketing: (1995) Collage of Business Education
Advanced diploma of Secondary education (1992) Jamhuri High school
Certificate of secondary school Education: (1990) Jamhuri Secondary school
Worked with Ashton Media as Account manager (1997-2007)
Works at Double tree Hotels as Marketer (2007-to date)
Mr. MAGORO SONGORO 15% (title: Chief Coordinator)
RESUME
Bachelor of Business communication: (1993) University of Dar Es Salaam
Advanced diploma of Secondary education (1992) Jamhuri High school
Certificate of secondary school Education: (1990) Jamhuri Secondary school
Worked with Ashton Media as Account manager (1997-2007)
Works at Double tree Hotels as Marketer (2007-to date)
Board’s Responsibilities: It’s comprised of share holders above 25% only
§ Passing and voting for names of day to day administrators
§ Recruiting
§ Resolutions in case of sale of shares
§ Deciding on the dividend percentages
Chief Executive officer’s Responsibilities
§ Making financial settlement through the bank
§ Attending cooperate meeting and invitations outside
§ Chairman of all general meetings
Manager’s Responsibilities
§ Secretary to all general meeting
§ Planning the courses of action
§ Executing controlling time
§ Employing auditors/coaches
§ Financial reporting to authorities like T.R.A
Coordinator’s Responsibilities:
§ Bursar to the day to day operations
§ Structuring
§ Organizing
§ Budgeting
§ Preparing financial statements
9. FINANCIAL PLAN
Cash flow Statement
Cash flow statement is the statement that want to know the amount of cash available in your bank or in your wallet or purse, the how much cash do you have at the beginning of the month. Therefore the difference between this two is known as net change in net change in your cash during the month. This cash flow includes operating cash flow, cash flow from investment activities and cash flow from financing.
SPORTS MARKETING AND SPONSORSHIP LIMITED
Fore casted Cash flow statement as for the year ended 31st December 2011
| Asset 2009 2010 Tsh: (000) Tsh: Cash …………………………………………………140,350 95,900 Account Receivable (net)……………………………95,300 102,300 Prepaid expenses……………………………………..6,240 5,860 Inventories…………………………………………...165,200 157,900 Land………………………………………………….75,000 90,000 Buildings……………………………………………..375,000 260,000 Accumulated depreciation – buildings ……………... (71,300) (58,300) Machine and equipments…………………………….428,300 428,300 Accumulated depreciation machinery & equipment.. ( 148,500) (138,000) Patents………………………………………………... 58,000 65,000 Total asset 1,159,209 1,093,660 Liabilities and stockholders’ Equity Account payable ( merchandise creditors)…………….43,500 46,700 Accrued expenses ( operating expenses)………………14,000 12,500 Income tax payable…………………………………….7,900 8,400 Dividends payable……………………………………..14,000 10,000 Mortgage note payable due 2001………………………40,000 0 Bond payable…………………………………………...150,000 250,000 Common stock Tsh 30 per share……………………....450,000 375,000 Excess of issue price over par- common stock…………66,250 41,250 Retaining earnings………………………………………373,640 349,810 Total liabilities and stock holder Equity 1,159, 290 1,093,660 |
Income statement
The income statement is that statement that show the company’s profit or loss during the operating period of a specific year. The following is the extracted Income statement of Helton Hotel.
SPORTS MARKETING AND SPONSORSHIP LIMITED
Fore casted Income statement
For the year ended December 31st 2011
| 2009/2010 Tsh “000” Tsh Sales……………………………………………………… 1,100,000 Less Cost of goods sold………………………………….. 710,000 Gross profit 390,000 Operating expenses: Depreciation expenses……………………………………… 23,500 Patent amortization …………………………………………. 7,000 Other operating expenses………………………………………196,000 Total operating expenses……………………………………. 226,500 Income from operations 163,500 Other income Gain on sale of investments ……………………………………..11,000 Other expenses Interest expenses……………………………………………………26,000 (15,000) Income before income tax…………………………………………. 148,500 Income tax expenses………………………………………………… 50,000 Net income………………………………………………………….. 98,500 |
Balance sheet
Is the statement that shows the balance of Asset and Liabilities, sometimes the Balance Sheet show the ability of asset to pay dept in the organization.
SPORTS MARKETING AND SPONSORSHIP LIMITED
Forecasted Balance sheet as at 31st December 2011
| ASSET Tsh: (000) Non Current Asset Buildings 375,000 Less: Depreciation (71,300) 303,700 Land 75,000 Machinery and equipment 428,300 Accum dep of machine (148,500) 279,800 Total noncurrent asset 658,500 Current Asset Account receivable 95,300 Inventory 165,200 Prepaid expenses 6,240 Patents 58,000 Cash 140,350 Investments 35,700 Total Asset 1,159,290 | LIABILITIES Tsh: (000) Authorized share 1,000,000 @1,200 Tsh 1,200,000 Authorized sha re and issued Share equity 607 @ 1,200 728,150 Retained earning 373,640 Total Long term liabilities 1,101,790 Short term liabilities Account payable 43,500 Accrued expenses 14,000 Total Liabilities 1,159,290 |
Ratio analysis
SPORTS MARKETING AND SPONSORSHIP LIMITED
Ratio analysis
From 1/1/2009 to 31/12/2011
| Working Capital (Current asset – Current Liabilities) Cash in hand Sundry debtors (due till to day) Sundry creditors (due till today) Stock in hand Net profit 0.00 Cr Wokg: Capital Turnover (Sales Account/ Wkg Capital) Inventory turnover (sales Accounts/ Closing stock) | Current Ratio 0.00:1 (current asset: current liabilities) Quick ratio 0.00:1 (current asset – stock: current liability) Gross profit% 0.00% Net profit% 0.00% Recv. Turnover I days days (payment performance of debtor) Return on investment% 0.00% (Net profit/ capital Acc+ net profit) Return on wkg. Capital 0.00% (Net profit/ Working capital) % |
10. ASSESSMENT OF RISKS
There is a guarantee that there will not be any unfavorable market trends because the population has been projected to grow rapidly due to the increased number of higher learning institutions.
However the costs incurred in trimming new talents are at high risks if these people are uncooperative and wants to move on once they have swimming skills. This will be overcome by contractual agreement with the trainees before they join our team. All trainees must sign for a contract of not less than five years
Unexpected new competitors will be over whelmed by new price packages and newer facilities that will be bought during pool renovations
Change in technological inputs has been taken like a risk by the managers but the chief Executive has promised to work hand in hand with international companies so as the business will be the latest technology user in the country.
Other common risks like fire and accidents have been insured.
11. APPENDICES/APPENDIX
Supporting documents will include:
§ The company profile
§ Certificate of in corporation
§ Boards’ resolution on shares
§ Contracts for using the swimming pool and its employees
§ Bank statement
§ Business License
§ Business Tax Identification Number
§ Memorandum
§ Articles of association
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