Finbar Iluobe

EKADA INTERNATIONAL ENTERPRISE LIMITED BUSINESS PLAN JANUARY, 2024 1 EXECUTIVE SUMMARY EKADA International Enterprise Limited is a privately-owned company registered in Nigeria, as a limited Liability Company, under the Company and Allied Matters Act 1990. EKADA International Enterprise Limited operates within the fashion/Design and Entrainment industry. The opportunities in these sectors are limited. However, as a result of limitation of resources, EKADA International Enterprise Limited is focusing on the following: a) Sales of fashion and design wears (ready to wear ad bespoke) for certain age groups and services. b) Sales of uniforms for different purpose: E.g. Schools, Hotel staffs, office attendants, Drivers etc. c) Consultation and Training The extent of competitive rivalry in the Fashion/Design and Entertainment industries is very high. Since EKADA falls within the rubrics of small scale enterprise, we are pursuing a differentiated focus strategy with a view to attaining sustainable competitive advantage. To enable the company benefit from the opportunities which abound in the Fashion/Design and Entertainment industry, investment in capital equipment and recurrent expenditure to cover operations and personnel cost is imperative. The capital and recurrent expenditure required with a view to driving our focus strategy is N22,200,000.00 and about N13,000,000 respectively. 2 TABLE OF CONTENTS Executive Summary-------------------------------------------------------------------------------------------------2 1.0 Chapter One- Introduction-------------------------------------------------------------------------------------------4-5 2.0 Chapter Two- Industry and Market Analysis: Analysis of Competition in the Industry -------------------6–8 3.0 Chapter Three- Strategic Option---------------------------------------------------------------------------------------9-10 4.0 Chapter Four- Manpower Requirement -----------------------------------------------------------------------------11-20 5.0 Chapter Five- Capital Investment--------------------------------------------------------------------------------------21-22 6.0 Chapter Six- Staff Remuneration and Administrative Expenses------------------------------------------------23-25 7.0 Chapter Seven- Revenue and Expenditure Targets----------------------------------------------------------------26-27 8.0 Chapter Eight- Measurable Deliverables and Milestones---------------------------------------------------------28-29 3 CHAPTER ONE 1.0 INTRODUCTION EKADA International Enterprise Limited is a fully owned indigenous firm incorporated in Nigeria. The objective of the company among others includes: 1) To carry on business as fashion experts, organization of shows modeling, model agents and beauty experts. 2) To engage in the business of tailoring, sales of fabrics, clothing designers, manufacturing of cosmetics such as beauty creams, perfumes, powder and to engage in importation, sales and distribution of all allied materials. 3) To carry on business of film/movies production/song composers service to clients and producers, voice trainers, music production/experts and advisers, talent hunters and talent development. 1.1 SERVICE DELIVERY Our core values is enmeshed in offering, safe, convenient and prompt service by friendly courteous and enthusiastic personnel. We place premium on giving our customers good value for their money. There will always be something exciting to experience in our organization. We strive to achieve a close relationship with our target market through well designed proportional activities. 4 1.2 SHARE CAPITAL OF COMPANY As shown on Table 1, the nominal share capital of the company is N1,000,000 and it is divided into N1 each. The share structure is allotted as shown on Table1. Table1. Share holdings S/NO NAMES NO OF SHARES 1. EKADA Ejiro Chinenye 900,000 90 2. EKADA Otega Odera 100,000 10 1,000,000 100 TOTAL % HOLDING 1.3 The Social Impact of EKADA International Enterprise Limited Business Initiative Fig 1: Social Impact of Business Initiative EKADA INTERNATIONAL ENTERPRROSES LIMITED Economic Growth: • Increase in Business activities in the Fashion Sector • Increase in investment • Increase in Profitability Economic Development: • Monthly skill acquisition training for teenage girls • Reduction in Unemployment • Reduction in Crime • Enhancement of Security • Decrease in Government Expenditure on Security • Enhancement of the leaving standard of the people As shown on Fig 1, our investment in fashion and Design will enhance economic development and impact positively on the society. 1.4 Summary Our quality service philosophy will drive our business objective. The attainment of our economic growth will culminate in economic development. 5 CHAPTER TWO INDUSTRY AND MARKET ANALYSIS 2.0 ANALYSIS OF COMPETITION IN THE INDUSTRY EKADA International Enterprises Limited operates within the fashion and design market. The analysis of the competition within the fashion and design market will therefore be situated within the context of the bargaining power of buyers, the threat of new entrants, threat of substitute products, the bargaining power of suppliers and the extent of rivalry among existing firms. 2.1. THE BARGAINING POWER OF SUPPLIERS The company depends on inputs like Accommodation, Generator, Machines, Computer hardware and software, fabric etc. from various suppliers. As a result of the diversified nature of the inputs required for operation, the bargaining power of suppliers is low. 2.2 THE BARGAINING POWER OF BUYERS The buyers are the customers of our organization. In the fashion and design market, the bargaining power of customers is very high, because there are other firms offering identical services. The cost of switching by a customer is also minimal. 6 2.3. THE THREAT OF POTENTIAL NEW ENTRANTS New entrants come into a market place when the profit margins are attractive and the barriers to entry are low. In the case of the fashion and design market, it is easy to enter the market. However, certain ertain fixed assets must be in place whether the scale of operation is high or low. The threat of potential new entrants in the market is therefore medium. 2.4. THE THREAT OF SUBSTITUTES Occasionally, substitutes renders product in an industry redundant. There are various service providers whose services are substitutes. The threat of substitutes to our services is therefore high. To prevent the harsh effect of this on our profitability, we shall strive towards using branding advantage and value innovation to establish ourselves in a niche segment of the market. 2.5. THE EXTENT OF COMPETITIVE RIVALRY The competitive rivalry in the fashion and design market is very high since the industry is profitable. The attractive nature of an industry determines the extent of rivalry. As a result of the competitive nature of the market, the operators engage in regular and extensive monitoring of key companies to gain insight into their pricing policies, details of services, investments necessary for cost reduction and attempting to poach key employees. The difficulty in differentiating services within the market encourages price-based competition. 7 2.6 SUMMARY The task facing our company is to build market share. Here the company intends to invest to increase market share. To achieve this goal, the company will explore a suitable competitive strategy. 8 CHAPTER THREE STRATEGIC OPTION 3.0. INTRODUCTION As a result of limited resources, we have no intention of pursuing broad strategy. The following constitutes our target market:  Music and Movies celebrities  Schools, Hotels  Business people  Models  Young adult (Age 25-40) The stated focus strategy shall be attained within the framework of appropriate value innovation 3.1 VALUE INNOVATION OF EKADA INTERNATIONAL ENTERPRISE LIMITED (Kim, & Maubogne, 2004) EKADA will focus on uncontested market with created value innovation thereby eclipsing competition. 9 EKADA is lifting buyer value/value innovation by diversifying the sources of raw materials and raising competence in creative design, and linking same with know your customer (KYC) programme and skill acquisition training for teenage girls who cannot afford the luxury necessity of higher education to a very high level. 3.2 Summary To enable the objectives of our enterprise, we are exploring a focus strategy within the context of value innovation. These shall be done by competent employees. In the next chapter, the manpower requirement of company shall be examined as there is a relationship between strategy and structure. 10 CHAPTER FOUR 4.0 MANPOWER REQUIREMENT There is a deliberate effort to run the company in the best tradition of an efficient organization where the flow of responsibilities is well defined and policies promptly implemented. Fig 4: EKADA Organizational Structure BOARD MD/CEO HEAD HR ACCONTANT CREATIVE DESIGNER BUS DEV. MANAGER ILUSTRATOR MANGER MARKETING PUBLICITY ACCOUNTS OFFICER PRODUCTION ASSISTANNT PRODUCTION ASSISTANNT QUALITY ASSURANCE SUPERITENDENT PARKAGING STAFF SECURITY PARKAGING STAFF OFFICE ASSISTANT PARKAGING STAFF CLEANER PARKAGING STAFF DRIVER TECHNICIAN The Managing Director who reports directly to the board does the overall management of the company. 11 4.1. MANAGING DIRECTOR/CEO Qualification and Experience: Possession of a University or equivalent degree in Engineering/Management or Social Sciences. The possession of a postgraduate qualification will be an added advantage. QUALITY PLANNING SUPERINTENDENT The job holder will be responsible for Project planning for implementation of various management systems, setting of standards, document control systems, quality audits, statistical process control, management reviews, development of training systems, development of quality action teams and organizational Benchmarking. Qualifications: Graduate in a business, engineering or scientific discipline, and Post Graduate (diploma/degree) in the areas of Quality Management/TQM/Business Excellence or equivalent. - The job holder should display good oral/written communication skills, and should have independently designed and delivered training programs in quality related concepts/techniques; - Good PC skills (as will be required to develop reports with graphical representations and charts/tables etc). 12 HEAD: HUMAN RESOURCE The job holder will enhance business/functional performance through appropriate advice and integrated people management strategies and processes. The role supports and manages relationship with other managers. Key responsibilities: - Supports key clients in aligning business and people strategies, directions and objectives through appropriate advice/interventions - Coordinates and influences the development of a performance culture through effective development of people - Integrates HR services to provide business solutions - Facilitates group interventions to solve business problems - Developing HR practices that act as strategic differentiators - Coaches and guides senior managers on people practices, e.g. people development. - Facilitates talent management - Drives the EKADA culture in creating a ‘preferred’ work place for our employees and fosters an environment where employee behaviour is aligned to our values - Plays a key role in managing complex organizational change projects with people implication 13 Key Behaviours - Assertive, tenacious and willing to challenge the business and the function when required - Highly driven in setting stretching goals for self and teams, and continually pushing for results - ‘Role model’ in values, and demonstrates strong personal ethics in all decision making - Focused and structured in approach, effectively managing multiple tasks to meet tight deadline with limited resources - Takes psychological ownership to deliver deadlines on time, every time - Adopts a strengths-based approach in all interactions with the business - Welcomes opportunities to support the performance and contribution of others - Continually invests in own learning and development Authorities/Judgmental Complexity - A very high degree of judgment ability is a critical requirement in almost all aspects of this job - Forecasting manpower needs and deciding on appropriate courses of action. - Handling sensitive issues and counseling staff. 14 Requirements Knowledge /Skills / Experience - A professional or relevant post graduate management qualification is essential. - Experience in human resources at both operational and strategic level - Strong interpersonal skills - High level of analytical ability - Commercially, culturally and diversity savvy, high sensitivity to the social, economic and political environment - Knowledge of fashion market/Entertainment industry is a distinct advantage - Highly customer focused, as it demands in fashion industry - Strong leadership skills ACCOUNTANT Responsibilities: - Leading a team of staff responsible for the production of accounts and reports; - Producing weekly, monthly and quarterly management reports to senior management; - Analyzing variances and exploring potential problems; - Making appropriate recommendations and advising of the impact on the business. 15 - Improving the systems surrounding all aspects of the budgets, forecast and management reporting; - Carrying out any necessary research, analyzing it and concluding on the information; - Assist in setting up and maintaining branch reporting system; - Budgeting, planning and forecasting and implementing performance measures for the business; - Identify improvement in financial reporting structure and processes. Experience/ and Qualification: - Candidate must posses a university degree, CIMA, ACCA or equivalent; - Between 2-5 years of solid financial accounting, management accounting and analytical work experience, preferably in the private sector; - Excellent Microsoft Excel spreadsheet skills and other reporting applications - Must be extremely organized, analytical, numerically – inclined, high attention to details and capable in handling multiple projects simultaneously; - Team player with a positive attitude, hardworking and commerciallysavvy. 16 BUSINESS DEVELOPMENT MANAGER The Position: The job holder will have the over-all responsibility of pricing management and market development. Qualifications/Experience: - The job holder must be a degree graduate, preferably Organizational Development, or related field, with a minimum of 2 years of relevant working experience. - The job holder must posses experience in fashion market and Entertainment industry, pricing/excellent people and management skills, strong quantitative and qualitative skills, advanced problem-solving capabilities and exceptional knowledge of revenue management and its applications. CREATIVE DESIGNER Responsible for producing materials in line with clients brand strategy through multiple channels, reuse of provided materials and creating new content to help drive sales and retention. The creative designer produce artwork for the brands materials to the highest standard across all mediums ensuring the brand is fit for purpose, and bringing knowledge of current design trends and use them to create powerful materials. 17 The Role  To produce all assets in line with the marketing communications calendar  Ensure the brand is represented accurately in line with brand guidelines and strategic direction.  Work within the brands guidelines across all mediums  Ensure artwork is developed whilst considering the short-term and the long-term company objective  Ensure artwork has been approved through all relevant channels  Produce artwork that adhere to the briefs provided, offering creative solutions and ideas to meet the stated objectives  Provide artwork to the management for sign off.  Meet weekly with the Brand Manager to review critical paths of all projects and discuss design briefs.  Where necessary, call upon advice and guidance from the Senior Creative lead for mentoring purposes and sharing of best practice. FASHION ILLUSTRATOR The fashion illustrator as a Senior Designer take an inclusive and collaborative approach to designing products. The fashion illustrator will understand our primary customer journeys and help build a clear picture of customer in order to create leading edge designs. As a senior member of the team he/she will have an entrepreneurial spirit, be resourceful, forward thinking and committed. He/she will also be responsible for helping more junior member of the team in their professional and personal development. 18 Principle Accountabilities Include:  Design, run and analyze user experience and research  Design and facilitate collaborative sessions and multi-disciplinary teams  Design and deliver cross-discipline design.  Play a pivotal role in Variant testing  Define and deliver against committed timelines  Strong visual and interaction design work  Mentoring and development of less senior members of the design team Knowledge, Skills and Experience Required  Strong background in a lead design role in desktop and web apps  Experience planning and leading cross discipline ideation workshop and design sprints  Clear evidence of collaborative, interdisciplinary working methods  Driven, hardworking and passionate about design  Experience of designing for multiple device types and context (desktop, tablet, smartphone, app etc.) PRODUCTION ASSISTANT Duties:  Cutting and grading materials  Developing TEC packs marker marketing pattern conducting fittings  Developing artwork using illustrator Embroidery print development with the printer’s quality control packing. 19 Desired Skills  Must be able to hand sew and use a sewing machine competently pattern drafting  Able to use photoshop and illustrator Gerber or cameo knowledge Toiling embroidery (desired). Personal Qualities  Excellent communication skill  Highly organized confident team player  Knowledge of the fashion industry  Fluent in English speaking and writing Desired Qualification  GCSE A-C in Mathematic and English/ or equivalent is essential  Level 1 in fashion would be desirable. Future Prospects  Future opportunities are always a prospect in the fashion industry Summary The configuration of the proposed manpower will have a favourable impact on our competitive strategy. 20 CHAPTER FIVE 5.0 CAPITAL INVESTMENT The proposed investment in fixed assets are given below: S/NO CLASSIFICATION NO. TOTAL VALUE (N) 1 Generator 1 700,000.00 2 Split Units AC 4 600,000.00 3 Tables 4 600,000.00 4 Cabinet (storage) 3 200,000.00 5 Office Tables 6 450,000.00 6 Office Chairs 8 296,000.00 7 Cabinets (fireproof) 2 150,000.00 8 Standing fans 4 100,000.00 9 Fridge 1 70,000.00 10 Computer System 2 500,000.00 11 Toyota Car 1 3,500,000.00 12 Toyota Bus 1 2,500,000.00 13 Sewing Machine 5 750,000.00 14 Embroidery Machine 3 450,000.00 15 Website Development 1 200,-,066,000.00 Total 21 Summary The acquisition of the highlighted threshold capital resources will enable the corporate objective of the company: In the next chapter the relevant recurrent expenditure required for the operation will be examined. 22 CHAPTER SIX 6.0 STAFF REMUNERATION AND ADMINISTRATIVE EXPENSES: The following shall constitute staff remuneration and administrative expenses. 6.0.1 Table 2: Staffing and Remuneration Position No of Amount per annum (N) Personnel Managing Director/CEO 1 2,400,000.00 Business Development Manager 1 1,800,000.00 Human Resource Manager 1 1,800,000.00 Accountant 1 1,200,000.00 Creative Designer 1 1,800,000.00 Illustrator 1 1,800,000.00 Production Assistants 3 2,880,000.00 Packaging Assistants 2 1,920,000.00 Tailors 2 1,200,000.00 Office Assistants 2 Technician 1 Cleaners 2 Drivers 2 Security 2 Total 22 1,200,-,-,000.00 1,200,000.00 23 1,080,-,200,000.00 Staffing and Remuneration: Years Amount (N) 2019 22,200,000.00 2020 24,420,000.00 2021 26,862,000.00 2022 29,548,200.00 2023 32,503,020.00 TOTAL 135,533,220.00 From the above, one can deduce that staff salaries will grow over the next 5 years by 10%. The proposed 10% annual increase in emoluments will assist in raising the morale of employees. 6.2 OFFICE AND GENERAL EXPENSES: N (i) Diesel 1,000,000.00 (ii) Fuel 500,000.00 (iii) Maintenance of fixed Assets 650,000.00 (iv) Spare parts 400,000.00 (v) Rent 4,000,000.00 (vi) Admin Cost 1,200,000.00 (vii) Rate (viii) Publicity 1,000,000.00 (ix) Depreciation 1,250,000.00 (x) Raw Material (xi) Miscellaneous 500,000.00 2,000,-,000.00 TOTAL 13,000,000.00 24 Year 2019 to 2023 estimated cost of office and general expenses @ 5% annual growth are as follows: Year(s) 1. Amount (N) 2019 13,000,000.00 2020 13,650,000.00 2021 14,332,500.00 2022 15,049,125.00 2023 15,801,581.25 TOTAL 71,833,206.25 Summary 2019 2020 2021 2022 2023 TOTAL (2019 – 2023) (N) (N) (N) (N) (N) (N) Staffing & 22,200,000.00 24,420,000.00 26,862,000.00 29,548,200.00 32,503,020.00 135,533,220.00 13,000,000.00 13,650,000.00 14,332,500.00 15,049,125.00 15,801,581.25 71,833,206.25 35,200,000.00 38,070,000.00 41,194,500.00 44,597,325.00 48,304,601.25 207,366,426.25 Remunerations 2. Office & General Expenses 3. TOTAL Summary The company is expected to make a provision of N22,200,000.00 and N13,000,000.00 in the base year in respect of remuneration and office and General Expenses with a view to enabling capital investment. 25 CHAPTER SEVEN 7.0 REVENUE AND EXPENDITURE TARGETS Our revenue expenditure will be driven by our focus strategy and value innovation. They are also dependent on the following Marketing and publicity strategies:  Engagement in fashion, beauty and catwalks shows  Engagement in community activities  Creation of an interactive website  Utilization of social media platforms such as Instagram, Twitter, Facebook and WhatsApp  Placement of adverts in Newspapers, fashion and beauty magazines and participation in TV shows.  The wearing of customized cloths with an attractive design by employees in order to promote our brand. Table 3: Targets: Revenue, expenditure and operating results YEAR(S) Revenue N 2019 N 2020 N 2021 N 2022 N 2023 TOTAL (N) 26,560,000.00 34,528,000.00 44,886,400.00 58,352,320.00 75,858,016.00 240,184,736.00 22,200,000.00 24,420,000.00 26,862,000.00 29,548,200.00 32,503,020.00 135,533,220.00 500,000.00 525,000.00 551,250.00 578,815.00 607,760.00 2,762,825.00 1,000,000.00 1,050,000.00 1,102,500.00 1,157,625.00 1,215,506.00 5,525,631.00 650,000.00 682,500.00 716,625.00 752,456.00 790,079.00 3,591,660.00 500,000.00 525,000.00 551,250.00 578,815.00 607,760.00 2,762,825.00 4,000,000.00 4,200,000.00 4,410,000.00 4,630,500.00 4,676,805.00 21,917,305.00 2,000,000.00 2,100,000.00 2,205,000.00 2,315,250.00 2,431,012.00 11,051,262.00 1,200,000.00 1,260,000.00 1,323,000.00 1,389,150.00 1,438,607.00 6,610,757.00 400,000.00 420,000.00 441,000.00 463,050.00 486,202.00 2,210,252.00 1,000,000.00 1,050,000.00 1,102,500.00 1,157,625.00 1,215,510.00 5,525,635.00 1,250,000.00 1,312,500.00 1,378,125.00 1,447,031.00 1,519,382.00 6,907,038.00 500,000.00 525,000.00 551,250.00 578,815.00 607,760.00 2,762,825.00 35,200,000.00 38,070,000.00 41,194,500.00 44,597,332.00 48,099,403.00 207,161,235.00 -8,640,000.00 -3,542,000.00 3,691,900.00 13,754,988.00 27,758,613.00 33,023,501.00 Operating Expenses: Remuneration: Fuel Vehicle Diesel Maintenance of Other Assets Rates Rent Raw Materials Admin Cost Spare Parts Publicity Depreciation Miscellaneous Total Operating Expenses Operating result 26 7.1 Assumptions The following assumptions have been made in the process of calculation of revenue and expenditure (i) 6 days turn around period per week (ii) Office and general expenses shows 5% per annum increase and staff remuneration expected to grow by 10% per annum (iii) In 2019, Income is expected to represent 80% of recurrent expenditure (iv) Between 2020 and 2023, income is expected to grow by 30% 7.2 Summary The attainment of the stated revenue, expenditure, and operating result target will enable future expansion plans and the social dimensions of our Business. We intend working within a given time frame with a view to attaining these goals. An overview of this will be done in the next chapter. 27 CHAPTER EIGHT 8.0 MEASURABLE DELIVERABLES AND MILESTONES The time scale assists in dividing the plan into stages and identifying measurable deliverables and milestones. This will give us an idea of what is feasible within the given period. The activities will be planned in consultation with the management team. The activities and proposed time frame are presented in the table below: Table 3: Measurable Deliverables and Milestones MONTH(S) 1 Activities 2 3 4 5 6 7 8 9 10 12 Development Business Plan Development of infrastructure Furniture, Cabling, Machines, Development of website, etc. Recruitment/Manpower needs, staff orientation. Business Unit Plan & Market Development Marketing/promotion 8.1 EVALUATION OF THE SUCCESS OF STRATEGIC OPTION The strategic option being explored by the company is likely to succeed when evaluated against the success of suitability, acceptability and feasibility. 28 YR5 8.1.1 SUITABILITY The new strategy is suitable as it is congruent with the future trends and changes in the environment. The strategic capability of the organization is being exploited to meet the expectation of stakeholders. 8.1.2. ACCEPTABILITY Our business plan is acceptable, as the profitability of company is expected to witness an upward swing. This will guarantee a further enhancement of returns on investment. 8.1.3 FEASIBILITY Feasibility is concerned with whether an organization has the resources and competences to deliver a strategy. EKADA International Enterprises Limited, have the tangible assets and manpower to support the business plan. The project is therefore feasible. 8.1.4 CONCLUSION To enable the company improve on its market share, investment in relevant Fixed Assets is imperative. The strategic option being explored by the management is likely to succeed when evaluated against the success criteria of suitability, acceptability and feasibility. 29