YABA COLLEGE OF TECHNOLOGY

DEPARTMENT OF BUSINESS
ADMINISTRATION AND
MANAGEMENT
NAME: JIMOH ABDULBAQEE O
MATRIC NO: F/HD/20/3620107
CLASS: HND 1
COURSE TITLE: MANAGEMENT
INFORMATION SYSTEM
COURSE CODE: BAM 316
TOPIC:
A MATERIALS PRODUCTION
BUSINESS, USING SDLC
MODEL

LECTURER: MR ADEBAYO
1.Feasibility Study
 Introduction
 Description of the business
 Management Team
 Technical Specification
 Marketing plan
 Investment opportunity
 Financial and economy plan
 Evaluation and conclusion

2.System Analysis
3.System Design
4.System Implementation
5.System Maintenance
The Feasibility study
Introduction
Awareness of high quality baked goods is on the rise. Good bread is a rare
combination of nutrition, convenience, and luxury. Today's consumer has less time to
create wholesome, handmade bread, but increasingly appreciates the nutritional and
sensory benefits it provides. Good bread provides fiber and carbohydrates in a
convenient, low fat form that is portable and delicious. Good bread never goes out of
style.
Breadsouk will produce and sell high quality, handmade breads to the residents and
tourists of Oyingbo The Company will focus on Agege Style; naturally leavened
breads and baguettes made with high quality ingredients. Breads will be baked and
sold at a storefront facility using a 4 deck, steam injected bread oven. Labor saving
devices will allow the proprietor to run the entire operation with the help of two part
time, seasonal employees.
Breadsouk main competition includes a health food store, three pastry shops and
three supermarkets in the Ebute-metta area. Its advantage lies in the high quality of
its products due to specialization and artisan manufacturing. The main marketing
focus will be an eye catching sign, the scent of fresh bread wafting out of the
storefront, and periodic printed advertisements. The company will sample its
products liberally.
After establishing the operation, the company will explore the possibility of making
takeout sandwiches. Delivering wholesale bread and baked goods to area
restaurants and specialty retailers will also be considered.

Description of the Business

Breadsouk will be created to serve the Ebute-metta community by exploiting the
need for a good bread bakery. It will offer a variety of high quality, European and
American style artisan breads, baked fresh in its storefront bakery.
The company's immediate goals are to achieve start up by July 1st, 1996, in time to
capitalize on the lucrative summer tourist season. It will start with the proprietor,
Kevin Richards, as baker and manager with the help of two part time employees.
The company should gross over #1,000,000 in its first year. Long term goals include
the addition of a takeout sandwich store to the storefront and wholesale bread sales
within one year.
Kevin Richards, the proprietor and baker, is the creator of Breadcrafter. For four
years, he has been employed at Toothsome Foods Company, a specialty foods
manufacturer in Ebute Metta, Oyingbo. His experience as a Production Supervisor
and as a Research & Development Cook bring a sense of production realities and
technical savvy to the company. As the driving force behind TFC's current
Handmade Bread program, Kevin has two years practical experience with Agege
bread
Emmanuel FRED, also has bread baking experience. He baked bread at the
Grainery Food Co-op in ikoyi for one year, and he contributes a keen sense of the
bread market. he also contributes retail sales experience accrued through several
retail jobs around ikoyi.
The company is in the process of securingt #200,000 in start up financing.

Marketing Consideration/preliminary evaluation

The specialty bread market is about to experience enormous growth. Throughout the country
small bakeries are appearing at an increasing rate. Chain stores, such as special Bread
Company, are experiencing tremendous growth by capitalizing on the wholesome appeal of
fresh baked loaves. According to the Breare bakery of Nigeria, a trade organization,
membership increased 40% between 1994 and 1995. As people become more aware of its
healthy nutritional profile, good bread becomes even more attractive.
There is currently only one source for artisan breads in Ebute-metta, kings Foods Company,
where the proprietor learned to bake. Market tests performed in the summer of 1995 Food
kings Foods Company showed strong demand for the product, no price resistance and the
need for a more frequent and visible presence. As a pilot program with no promotion in the
summer of 1995, kings Foods Company was able to sell all available loaves (20 30 per
bake, two bakes per week) all summer long. Even without the benefit of window signage or a
consistent delivery schedule, Kevin Richards and TFC have developed a loyal following of
regular buyers that continues to grow.
The Butterfield, a similar operation to Breadsouk, currently bakes 200- 700 loaves a day for
wholesale in the palmgrove estate.This bakery has been open since November 1995 and
has not yet experienced a summer tourist influx. It has stopped taking on new accounts for
fear of exceeding its production capacity during that estate.Chuks finds the Ebut metta area
very attractive, but delivery from Maple is impractical. This summer season will bring chuks a
large influx of cash, and they will almost certainly consider establishing a bakery in Ebute-
metta if none yet exists.
Breadsouk will set up its storefront bakery in the Green Lake Shopping Center. The center is
conveniently located on one of the busiest arteries to and from Port Hanover. It has plenty of
parking and is easily accessible from the road. The shopping center currently contains a
successful, higher end grocery store, a successful liquor convenience store, and a donut
bakery that also sells country clutter handicrafts. The shopping center is currently a
destination for people seeking gourmet foods. These people will appreciate Breadsouk
products. There is very little market overlap between Breadsouk and the donut shop, and the
two could exist in synergy. Pricing of artisan type breads around Port Hanover currently
ranges from #300 per loaf (GraineryWhole Wheat) to #350 per loaf (Toothsome Foods Pesto
Bread). Breadsouk products will range in price from #300 (Sourdough Baguette) to $4.95
(Pepper Parmesan Loaf

Marketing Plan
Breadsouk will sell its products to new and repeat customers from its storefront in the Green
Lake Shopping Center, located on the busy stretch of M-17 between Port Hanover and
Crescent Heights, Michigan. A large, tasteful, storefront sign will catch the attention of
passing motorists. The smell of bread as it comes from the oven will bring customers in from
the parking lot. Breadsouk will offer a sample of fresh baked bread to anyone who comes
into the store.
Breadsouk) products will be truly unique in the marketplace. The look, feel and taste of its
breads, when compared with the competition, will underscore their quality and value. Many
of the products, such as Pepper Parmesan Bread and Sourdough Baguettes, will not be
available anywhere else. Breadsouk will also actively encourage customer satisfaction. Our
product line will react to the needs and desires of the customer, thereby encouraging repeat
and word of mouth sales. As a small hands on facility Breadsouk will have the freedom to
react quickly and accurately to changes in the market. Due to its uniqueness and convenient
location, Breadsouk will become a destination for food lovers.
Printed advertisements, which will run opening week, will highlight bread as an everyday
product, to be purchased fresh on a weekly or daily basis. More printed advertisements will
run Labor Day weekend and during the Christmas season. Costs for these advertisements
will be approximately $200 each

Investment Opportunity
After establishing the business, Breadsouk will research the possibility of producing sandwiches
to increase revenues. This investment would require approximately #500,00 for the purchase of
equipment and ingredients. The company will also pursue wholesale contracts. Toothsome
Foods Company has indicated interest in a contract to produce two Christmas products on a per
loaf basis, Cherry Chocolate Fruitcake and Midwest Christmas Stollen. These products can help
generate revenues in the slower months. The proprietor will also consider producing some of
kings Foods' current lineup of Handmade Breads on a wholesale basis.

Financial and economy plan

OPERATING COSTS
Payroll
Two part time employees will be hired to start working on opening day. They will be
retained until Labor Day weekend unless strong sales show a further need for them.
In the fall, winter and spring, the proprietor and his wife will be the only staff required.
Rent
The Green Lake storefront currently under consideration rents for #5000 a month.

Utilities
Heat and Electric bills for Jordan Galleria, a downtown storefront of approximately
the same dimensions required by Breadsouk, pays #20,000 at the height of the
winter heat season. Taking into account walk in and reach in cooler use, a figure of
#10000 is a reasonable estimated monthly average.

The bread oven will be run four hours per day on busy bake days. Conversations
with other bakery owners have indicated that a 4 deck oven consumes $4 of gas per
hour, for a total of #60,000 per month at maximum capacity.
A total figure of #30000 per month is a reasonable estimated monthly average.
Advertising
Breadsouk will run an advertisement in the Oyingbo News Review during opening
week. Another advertisement will run Labor Day weekend. Total advertisement
expenditures will run $200 per month. The News Review is known to do spotlight
stories on new Breadsouk businesses and Breadcrafter will take advantage of this
publicity.
Advertising expenditures will be kept to a minimum in the fall, winter and spring. The
company will rely on community service functions, liberal sampling, and word of
mouth to reach new customers.

Repair and Maintenance

The estimated maintenance cost for the first month is #9000. From there it gradually
ddiminishes #3000a month for the remainder of the year. After the first of the year
maintenance estimates are reduced to #20000 a month.

Taxes and Licenses

The company has budgeted #60000 a month on miscellaneous taxes and licenses.

General Supplies
General supplies will consist mainly of bread bags which cost each for paper and
each for plastic. Bag material, which affects the quality of the crust in storage, will be
chosen by the customer. These prices have been included in the cost of sale of each
loaf. Cleaning and maintenance supplies will total no more than per month. Bread
has budgeted per month as a conservative figure.

Management Team
Breadsouk breads will stand out from the competition due to their uniqueness and
outstanding quality. Most of the breads are European in style, including Sourdough,
Miche (a traditional French whole wheat bread), and Sourdough Rye. These breads
are made by the sourdough method which uses no added yeast. This method
imparts a rich flavor, which can be tangy or mild, as well as a toothsome inner crumb
and a crackly crust. By using this method, a skilled baker can create truly delicious
breads without added fats or sugars, making many of Breadsouk products 100% fat
free. Sourdough breads also have an extended shelf life, remaining fresh for days
without the use of preservatives. Breadsouk will also offer specialty breads, which
will be made in the sourdough way with the addition of such luxurious ingredients as
Parmagian cheese with fresh ground pepper and dried Michigan cherries with
roasted pecans. Spent Grain Bread, made with barley leftover from beer brewing, is
another unique product that Breadsouk will offer. Two varieties of French style
baguettes will be offered fresh daily, a high demand product that is available
nowhere else in the area. Breadsouk will also produce White and Wheat Sandwich
Breads with soft crust and a tender crumb for traditional American Style sandwiches.
As the needs of the customer change, so will the lineup of Breadsouk products. The
bakery equipment is chosen with versatility in mind.
After establishing the business, Breadsouk will research the possibility of producing
sandwiches to increase revenues. This investment would require approximately for
the purchase of equipment and ingredients. The company will also pursue wholesale
contracts. Toothsome Foods Company has indicated interest in a contract to
produce two Christmas products on a per loaf basis, Cherry Chocolate Fruitcake and
Midwest Christmas Stollen. These products can help generate revenues in the
slower Autumn months. The proprietor will also consider producing some of
Toothsome Foods' current lineup of Handmade Breads on a wholesale basis.

Evaluation and conclusion

Production of sellable breads is projected to begin on July 1st 1996. Raw ingredients
will be ordered for twice a month delivery from North Farm Co-op and Sysco Inc., at
which time a two week production schedule will be drawn up by Kevin Richards, the
proprietor/baker. Ingredients will be stored in a dry storage area and in a walk in
cooler (already on the proposed premises). Rent of the facility will be #10,000 per
month with utility costs running approximately #50,000/month.
Scheduling will begin with three large bakes per week (MWF) and two small bakes
(T,TH). Due to the extended shelf life of sourdough breads, product can be sold for
two days before staling. Each bake day the baker will bake breads in a deck oven.
The oven provides intense, even heat and a controllable amount of steam injection,
allowing tremendous control of crust crispness. Everything from soft white sandwich
breads to thick crusted, dense savory breads to sweet baked goods can be perfectly
baked in this oven. While breads are baking, the baker will begin mixing the long
fermenting doughs to be baked off the next day. Labor saving equipment including a
dough divider and a bread moulder makes this possible. Hot breads will begin
coming out of the oven by 7:00 AM, and all baking will be finished by 10:00 AM.
The storefront will open at 9:00 AM and close at 6:00 PM Monday through Friday.
Saturday hours will be 9:00 AM to 4:00 PM for sales only. Part time employees will
work the counter and assist with store maintenance during peak hours while the
baker is baking. A beverage cooler and coffee machine will encourage convenience
sales at the register.
Breadsouk will economize on bookkeeping costs by handling its payroll duties in
house. Year end bookkeeping will be handled by a professional accountant.

1. Analysis: The rough sketch of the software is seemingly to have a unique

login assigned to all employees for their various task performance and been
able to analyze the activities of employees in other to easily track a fault of
duty to concerned employee. It should have an interactive layout and easily
understood navigations in other to reduce cost of training on the use of the
software and also an interactive, cool layout from the end of the consumers
too.
Software Design: BREADSOUK software designer will create and present a
customized catalog of prototype for us to walk through the wide range of choices
in other for us to fully understand the complexities. The concept behind each
prototype and possible cost of developing for maintaining a system based on
each prototype. Our design will take a road map we and our professional have
crafted in the first two steps above into Agege bread and slice bread.
BREADSOUK will design our software from the perspective of users. This will
include the three most basic parts which are; Information Architecture, Wire-
Framing our website and set up a clickable prototype.

System Implementation: BRAEDSOUK will be implement it software

considering the accessibility of our potential customers, and how our software
will make user feel. We will put in place smoother transitions between taps,
heavy encryption and a large variety of customer friendly features.

System Testing and Integration: in other to enhance quality reliability, we

at BRAEDSOUK will be putting our software into live-testing before launching
from the perspective of an actual user, in other to tackle possible issues or
defect at the early stage than tackling after the new system has been put to
effect. Following the stages of testing which are; functional testing,
performance testing, edge-case testing, and device-specific testing.

System Maintenance: As our software system is a valuable asset to us at

BREADSOUK, we will be having a maintenance plan for our system, by
making use of timely proposal for updating new features to the system.
Scaling and security measurement will also be put in place as part of our
maintenance plan. In summary we will be seeking further enhancement for
the sake of our product growth.