Running head: POULTRY FARM PROJECT 1 1 Poultry Farm Project Linda Pham BC580 Strategic Management Jones International University June 21, 2015 Analyze the business strategy, leadership system, and global expansion potential of Kenchic International Company. How can the company leverage its strengths to expand into international markets, and what business model would be most suitable for this global expansion? Additionally, evaluate the potential challenges and opportunities for Kenchic's growth, including considerations for comp etition and market entry strategies. Use relevant business theories and concepts to support your analysis. Your response should be approximately 2,500 words. 2 1. ABSTRACT Kenchic International Company is an international formed in the 2012. The company is focused towards transforming the world to a better place through conducting a fare business globally that will promote the social, economic, political and environmental fa ctors that affects human lives daily. The company’s main objective is to transform the lives of the communities through supporting farmers and business men in their businesses. The company plays a big role toward improving the economy of the states through empowering business men and capacity building The organization mission vision and goal; 1.1 Mission statement “To be a leading center for towards economic growth” 1.2 Vision statement “To enhance sustainable development through empowerment and capacity building” 1.3 Objectives and Goals o To promote sustainable development o To eradicate poverty o To promote quality education o To promote health o To protect the environment o Promote the economy 2. BUSINESS STRATEGY The company invests a lot of capital towards supporting various business men especially the vulnerable communities. The main aim of the project will be to establish and improve the welfare of women and families across the world through commercial income generating enterprises. The project has been in existence for 5years actively participating in poultry farming as a source of income. The main vision of the project is to develop a self - sufficient group and maximizing profits to ensure great value of returns in terms o f shares but is hampered with some challenges. 2.1 Project Statement : 3 With the resent global burst in population and a worldwide demand for food, individuals now begin to realize the potential of providing the most important human basic needs with the increased awareness on health implication of red meat; there’s an increased demand for white meat that makes poultry farming a viable business. The demand is far more than the already existing production. The project is intended to be established in an area with t he most vulnerable temperature for agricultural products. In addi tion many supermarkets are also selling eggs and poultry meat. Poultry farming is therefore one of the most promising enterprises in world beside livestock farming and this is because they require little space and relatively small initial capital per unit head compared to other livestock enterprises. There is easy availability of day - old chicks as well as feeds around the market sector, if anything Project objectives : o Improve the economic condition of the members as well as other sectors of society as a whole. o Train the women in income generative activities in order to generate enough money to support their families. o To set up a women demonstration center where women will meet to train and seek information. o Train women farmers to acquire more efficient management skills in agricultural production, harvesting, storage, processing and marketing. o Help women farmers to objectively focus on the needs of the family and the demands of the market and promote high value market - oriented crops and animals. o Providing improved varieties of planting materials and breeds of animals that are quick maturing and high yielding under average systems of management. o Community mobilization and sensitization of the people to actively participate in the various project components. In particular to encourage women farmers to voluntarily form small farmer groups/associations and societies based on their interest they thems elves have in each enterprise. o Ensure maximum returns in terms of profits on the invested funds to provide generous dividends in share capitals for every member financial contribution. 2.2 Project implementation: 4 This project is targeted to commence from June 2015 depending on its response and success; The Company plans to continue it further if the need so arises and it’s designed to follow the phases mentioned below for its implementation. First Phase – Preparation (First Quarter) 1. Recruiting workers. o Manager (part time) 1 o Secretary/Cashier (part time) 1 o Poultry Caretaker 1 o Store keeper 1 o Salesman 5 o Security gourd 2 2. Preparation for the tools, equipment, and necessary documents. 3. Construction of fences and poultry facilities 4. Giving of orientation or training, including the methods and strategies in the operation of the project. Second Phase – Implementation Proper (Second and Third Quarter) 1. Purchase of the layers and care for their growth. 2. Distribution/Marketing of the chickens Third Phase – Terminal Period (Fourth Quarter) 1. Assessment and Evaluation of the project 2. Continuity and expansion of the project 3. Preparation of documentary report to be sent to the donor agency 2.3 Project monitoring: 5 For any enterprise to succeed, proper and efficient management is essential in order to realize good returns on investment. Poultry is a labor - intensive enterprise. For maximum production, efficient labor is required on daily basis. Therefore close supervi sion is necessary. Feeding, watering, cleaning and sanitation, observation of diseases and disorders, collection of products for market and arranging an efficient system of sales must be well coordinated by a qualified manager. Monitoring of the project wi ll be done by all the stakeholders in order to achieve maximum production. 2.3.1 Monitory measures Project Board (VWG) – During the transition period, the Board of Directors shall first compose the Project Board in order to: 1. Direct the full implementation of the project; 2. Approve or disapprove large financial transactions involving the project; 3. Possess the documents in the entry and exit of financial matters of the Project. 4. Arranges quarterly meetings with the personnel who manage the project and the top Management will makes sure of the proper implementation of the project. 5. Temporarily directing the production and distribution/sale in the absence of a production officer and marketing officer. 6. Arranges the monthly meeting of the workers to discuss the progress and the challenges facing the project. Secretary/Cashier Responsible for the clerical aspects of the project and record keeping 1. Assist the Manager in the day - to - day activities. 2. Hold the documents of the meetings, properties, and financial transactions of the project. Poultry Caretaker 1. Responsible for the purchase of broilers, feed, growth, and Production of the chickens. 6 2. Responsible for the care and safety of the chickens, including the poultry structures and facilities. 3. Assumes other duties and responsibilities that may be entrusted by the Manage Store keeper: Inventory and stock management. Accounts Clerk: Keeping farm records and accounts. Salesman : Carry out business transactions on and off the farm. Security Guard: Ensure security and safety on the farm. This measure will therefore create a picture of security and ease in running of activities around the farm since there will be planned division of labor ensuring progress for all parties involved. 2.3.2 Project budget: Poultry House The estimate measurement required for each bird when constructing a poultry house is 2x2 feet; hence total space required is 40,000square feet. Each poultry room should measure 40x50 feet and should hold a maximum of 500 birds. The project needs five blocks each with 4 rooms giving a total number of 20 rooms. The distance between each poultry block is at least 40 feet. The design of the broader block should measure 67x150 feet and each block should have 2rooms of 5,000 square feet each. There will be a central store measuring 10x40 feet with 2 rooms. The first room will accommodate feeds the second one will be partitione d to house store for eggs, drugs and office for the Manager and other staff. Labor line will be made of four rooms, 2rooms for the Manager, one room for the storekeeper and one room for general purpose. The perimeter fence will measure one acre and will be made of treated poles and barbed wire. The project will construct an underground tank to collect and keep water from the poultry houses as well as an inbuilt incubator to help in the hatchery. 7 Item Quantity Unit name Amount Purchase of day old chicks 8000chicks $ 100 $800,000 Sub total $800,000 Feeding 1 - 60 days 5kg x 8000 = $40,000 $50 $2,000,000 subtotal $2000,000 60 - 180 days 50 birds consume 3kg per day, 8000 birds consumes 3 x 8000/100 = 240kg for 120 days = 240 x 120 = 28,800kg $ 50 $1,440,000 subtotal $ 1,440,000 Laying period 540 days Assuming 5% mortality then we shall remain with 8000 – (5/100 x 8000) = 7600 birds Each 50 birds consumes 8kg therefore 7600 birds will consume