NATIONAL OPEN UNIVERSITY OF NIGERIA (NOUN)

Business
1 plan presentation in partial fulfillment of the requirements for passing GST302
COURSE: BUSINESS CREATION AND GROWTH (GST302)
Your
passport Business Name: [Put a Creative Name Here]
SDG Category: Good Health and Well-Being
CONTENT
PRESENTER
1. Problem Definitions
1. NAME: KAYODE EMMANUEL KADIR
2. Innovativeness of the Proposed
2. MATRIC NUMBER: NOU122300955 Solution
3. STUDY CENTRE: VICTORIA ISLAND, LAGOS 3. Feasibility of the Proposed Solution
4. PROGRAMME: B. SC. COMPUTER SCIENCE
4. SWOT Analysis and Strategy
5. INCUBATION CENTRE: SOUTH-WEST
5. Financial Analysis and Sustainability
6. Financial Impact sustainability
6. SEMESTER: 2023_1ST SEMESTER
 PROBLEM DEFINITION
Problem Definition: A typical Nigerian soap maker that produces various types of Mission Statement:
Our mission is to provide high-
2
liquid and bar soaps such as Antibacterial, Moisturizing, Natural, Deodorant, and
quality and effective liquid and bar
Medicated, is facing multiple challenges that are impacting its growth and
profitability. soap products to the Nigerian
market that are not only affordable
One of the significant problems faced by the soap maker is the intense competition but also eco-friendly. We strive to
in the market. There are numerous other soap manufacturers that offer similar meet the needs and preferences of
products at competitive prices, making it challenging for the company to stand out in our customers by offering a diverse
the crowded market. range of products, including
Another challenge is the lack of customer loyalty towards the brand. Due to the antibacterial, moisturizing, natural,
availability of numerous soap options, customers tend to switch between brands deodorant, and medicated soap,
frequently, making it difficult for the soap maker to retain its customer base. while maintaining ethical and
sustainable manufacturing
Additionally, the soap maker is facing challenges related to product quality and practices.
consistency. Customers expect high-quality and consistent products, and any Vision Statement:
deviation from this can result in a loss of customer trust and decreased sales. Our vision is to be a leading soap
The company also faces difficulties in distribution and marketing its products to a maker in Nigeria that promotes
wider audience. The cost of distribution can be high, and it can be challenging to find health and hygiene, with a
effective marketing channels to reach potential customers. commitment to sustainability and
social responsibility. We aspire to
Lastly, [Put a Creative Name Here] is facing issues related to production efficiency create a healthier and cleaner
and cost management. To maintain its profitability, the company needs to optimize society by providing accessible and
its production processes and minimize costs without compromising on product affordable soap products that cater
 INNOVATIVE SOLUTIONS TO THE
An innovative solution for [Put a CreativePROBLEMS
Name Here] to address the mentioned challenges could be
3
establishing a partnership with local farmers and suppliers to ensure consistent quality and sustainable
raw material sourcing.

To address limited reach, the soap maker could leverage e-commerce platforms and create a digital
marketing strategy that targets specific demographics and locations.

Packaging and labeling can be improved by using eco-friendly materials and designing visually appealing
labels that highlight the unique features and benefits of the products.

To tackle competition, the soap maker could innovate and introduce new product lines or variations, such
as travel-size options or limited-edition scents.

To ensure consistent quality, the soap maker could implement a comprehensive quality control program,
including regular testing and inspections, and train employees on quality assurance techniques.

Overall, by prioritizing sustainability and innovation, [Put a Creative Name Here] can overcome the
challenges of inconsistent quality, limited reach, raw material sourcing, packaging and labeling, and
competition, while also attracting environmentally conscious customers and improving brand reputation.
 FEASIBILITY OF THE PROPOSED
SOLUTIONS
Implementing a supply chain management system for a Nigerian soap maker that
4 produces liquid and bar soaps is technically feasible.

The first step would be to identify the specific requirements of the system, such as
inventory management, order processing, and logistics. The company may need to
invest in technology infrastructure, such as hardware and software, to support the
system.

The implementation process would involve a team of experts, including IT

professionals, supply chain specialists, and business analysts. The team would
work collaboratively to design and develop the system, test it, and roll it out to the
company's operations.

The timeline for implementing a supply chain management system would depend
on the complexity of the system and the resources available to the company.
However, with a dedicated team and adequate resources, it could take anywhere
from several months to a year to complete the implementation.

Overall, implementing a supply chain management system for a Nigerian soap

maker is achievable in relation to technical aspects and timetables, provided that
the company invests in the necessary technology infrastructure and assembles a
 SWOT ANALYSIS
Strengths: Opportunities:
5
1. Wide range of soap products, including 1. Growing demand for natural and
liquid and bar soaps
organic soap products
2. Specialization in various soap types,
such as antibacterial, moisturizing,
2. Expansion into other African
natural, deodorant, and medicated markets
3. Local production and distribution, 3. Partnerships with local retailers to
allowing for better market penetration increase distribution channels
4. Established brand presence in the 4. Increase online presence and e-
Nigerian soap industry commerce sales

Weaknesses: Threats:
1. Limited marketing efforts, leading to
1. Competition from established soap
lower brand awareness
2. Dependence on local suppliers for raw
brands
materials, which can result in supply 2. Volatility of raw material prices
chain issues 3. Economic instability and political
3. Limited product innovation and unrest in the region
development, leading to a lack of 4. Changing consumer preferences
differentiation from competitors and demand for alternative personal
hygiene products
 FINANCIAL ANALYSIS AND
Fixed costs: SUSTAINABILITY
Expected income:
6
Production equipment (mixers, boilers, filling machines,
Liquid soaps - 5000 bottles x 1,500 naira per bottle
= 7,500,000 naira
etc.) - 1,500,000 naira Bar soaps – 10,000 bars x 500 naira per bar =
Factory rent - 500,000 naira per year 5,000,000 naira
Utility bills (electricity, water) - 50,000 naira per month Total income: 12,500,000 naira
Website design and development - 500,000 naira
Social media management - 50,000 naira per month Profit and Gross Margin:
Business registration and licensing - 100,000 naira Gross margin = (Revenue - Cost of goods sold) /
Insurance - 50,000 naira per year Revenue
Packaging materials - 200,000 naira per month Revenue = 12,500,000 naira
Total fixed cost: 3,950,000 naira Cost of goods sold = (2,000,000 naira + 1,000,000
naira + 150,000 naira) x 2 = 6,300,000 naira
Working capital: Gross margin = (12,500,000 - 6,300,000) /
Raw materials (oils, fragrances, colors) - 2,000,000 naira 12,500,000 x 100% = 49.6%
per month Profit = Revenue - Total cost = 12,500,000 -
Labor cost - 1,000,000 naira per month (3,950,000 + 3,650,000) = 4,900,000 naira
Marketing and advertising - 300,000 naira per month
Transportation and logistics - 150,000 naira per month In summary, a Nigerian soap maker who uses a
Miscellaneous expenses - 200,000 naira per month supply chain management system to produce
Total working capital: 3,650,000 naira liquid soaps and bar soaps such as Antibacterial,
Moisturizing, Natural, Deodorant and Medicated,
Average monthly output: and has set up a website and social media
Liquid soaps - 5000 bottles accounts for marketing will require a fixed capital
Bar soaps - 10000 bars of 3,950,000 naira and working capital of
 POTENTIAL IMPACT AND
SUSTAINABILITY
7Implementing a supply chain management system and setting up a website
can have significant positive impacts on the challenges and sustainability
strategies for a Nigerian soap maker.

A supply chain management system can help streamline the production

process, improve inventory management, reduce waste and ensure
consistent quality of raw materials and finished products. This can lead to
cost savings, improved efficiency, and better customer satisfaction.

A website can provide an online presence for the soap maker, allowing them
to reach a wider audience and increase sales. It can also provide a platform
for customer feedback and engagement, which can help improve product
development and sustainability strategies.

Overall, implementing a supply chain management system and setting up a

website can help a Nigerian soap maker improve their competitiveness,
increase their sustainability, and better meet the needs of their customers.