ADEPA PALM OIL COMPANY LIMITED BUSINESS PLAN

CHRISTIAN SERVICE UNIVERSITY COLLEGE KUMASI DEPARTMENT OF BUSINESS STUDIES BARCHELOR OF BUSINESS ADMINISTRATION BUSINESS PLAN BY ODURO LINDA OBENEWAAH OBENG ASAMOAH MARGARET NYAMEKYE ADWOA TIWAA DARKO PATIENCE MINTAA DICKENS LORDINA DECEMBER, 2011

CHRISTIAN SERVICE UNIVERSITY COLLEGE KUMASI DEPARTMENT OF BUSINESS STUDIES BARCHELOR OF BUSINESS ADMINISTRATION BUSINESS PLAN A BUSINESSPLAN SUBMITTED TO THE DEPARTMENT OF BUSINESS STUDIES OF CHRISTIAN SERVICE UNIVERSITY COLLEGE, KUMASI IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE COURSE CSAD 443 TEAM BUSINESS PROPOSAL BY ODURO LINDA OBENEWAAH OBENG ASAMOAH MARGARET NYAMEKYE ADWOA TIWAA DARKO PATIENCE MINTAA DICKENS LORDINA DECEMBER, 2011

We have read the Christian Service University College’s regulations relating to plagiarism and certify that this Business Plan is all our work anddonot contain any unacknowledged work from any other source. We also declare that we have been undersupervision for this Business Plan herein submitted. Name of Students Index Numbers Signature Date ODURO LINDA OBENEWAAH 10135204 ………… ………….

OBENG ASAMOAH MARGARET 10135209 ………….………….

NYAMEKYE ADWOA TIWAA 10135208 ………….………….

DARKO PATIENCE MINTAA 10135235 ………….………….

DICKENS LORDINA 10135236 ………….………….

Certified by ……………………….. ……...…..………… . ……… (Supervisor) Signature Date Certified by: ………………….. ……… ……… (Head of Business Studies Department) Signature Date

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EXECUTIVE SUMMARY

Adepa Palm Oil Company limited is a Small Scale business born out of desire and concern of five main intellectual people to bring out a well packaged palm oil in ahygienic environment and also its distribution. Adepa Palm Oil Company will be located at Apemso in Juaben near Juaben Oil Mills in Ashanti Region. Our vision is to become a leader in the packaging and distributing of affordable, quality and accessible palm oil in Ashanti Region and beyond. The Corporate Objectiveis to promote our local Palm Oil through creativity and innovative packaging and also to promote healthy living through the consumption of Adepa Palm Oil. Thefunding of the business plan will becontributed equally by five members of the Company. Adepa Palm Oil Company limited is a new business and intends to be registered in January 2012 in Ashanti Region. Our target market will be Senior High Schools in Kumasi and also super markets and retail shops. We plan to focus more on the Senior High Schools to create awareness for a start, we will then proceed to super markets and other retail shops. Since our business is new and has huge competition in the local markets, we will try to give good quality at competitive prices and this will help us to increase our market share and achieve higher sales. Once we achieve this objective then we try to charge higher price for our customized

ii products for value addition. We will advertise through personal selling and also through radios, coupons and flyers. From ourprojectedfinancial statements, it shows clearly that Adepa Palm Oil Company will be able to breakeven within the first year. Also ROCE figures are 28.92%, 30.94% and 29.94% respectively for the 3years. A positive Net Present Value is an indication that the business is viable.

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iii MISSION STATEMENT Our mission is to offer affordable and quality palm oil with its natural taste and to repackage palm oil in a more convenient way.

VISION STATEMENT To be a leader in distribution of affordable, quality and accessible palm oil in Ghana and even beyond the borders of country by the next three years.

CORPORATE OBJECTIVE To promote our local Palm Oil through creativity and innovative packaging and also to promote healthy living through the consumption of Adepa Palm Oil.

iv TABLEOF CONTENT Page EXECUTIVE SUMMARY ……………………………………………………… ..i-ii MISSION…………………………………………………………………………… ..iii VISION……………………………………………………………………………… .iii CORPORATE OBJECTIVE……………………………………………………… ….iii ORGANIZATION……………………………………………………………………..1 PRODUCT IDEA & REALIZATION OF SCHEDULE ……………………… …...2-3 MANAGEMENT TEAM ………………………………… ………………………..4-6 MARKETING ANALYSIS …………………………………………………………...7 BUSINESS SYSTEM AND OPERATIONS ……………………………………...7 –9 INDUSTRY OVERVIEW…………………………………………………………….10 ENVIRONMENTAL ANALYSIS ……………………………………………….10 -14 POSITIONING………………………………………………………………………..15 MARKETSEGMENTATION………………………………………………………..15 TARGET MARKET…………………………………………………………………..15 MARKETING MIX……………………………………………………………..16 –20 SALES STRATEGY………………………………………………………………….21

v SALES FORCE COMPENSATION ………………………………………………….21 RISK ANALYSIS………………………………………………………………..23-25 FINANCIAL ANALYSIS……………………………………….………………26 -47 APPENDIX

5.2 PROJECTED INCOME STATEMENT FOR A PERIOD OF THREE YEARS

Sales 290,400.00447,216.00525,926.00 Less cost of sales 199,790.75329,472.35378,903.19 Gross profit 90,609.25 117,743.65147,022.81 Less admin.selling anddist. 32,383.75 33,113.7536,363.75 Operating profit 58,225.50 84,629.90110,659.06 Less finance cost 100.00 120.00 200.00 Net profit 58,125.50 84,509.90110,459.06

5.3 BREAKEVEN ANALYSIS

Administrative expenses 30,505.00 Fixed Asset 19,787.50 Overhead 715.75 Fixed cost 51,008.25 Production cost 223,990.00 51008.3

6.8698 per 20 litres 223990

30.167 per 20 litres unit cost 37.0368 Break even =Fixed cost Contribution Contribution = Selling-variable cost 51008.3 44-30.167 51008.3 13.833

Break even = 3687 UNITS OF 20 LITRES Breakeven in sales= 3687*44 GH¢162228 162228 * 12 290400 6.7 months

5.4 PROJECTED CASHFLOW STATEMENT OF A THREE YEAR PERIOD

Sales 290,400.00 447,216.00525,926.00 Capital 150,000.00 - - Total inflows 440,400.00 447,216.00525,926.00 Less outflows: Raw materials 213,840.00 329,313.60329,313.60 Drect allowances 4,950.00 5,400.00 5,940.00

Direct expenses 5,200.00 6,600.00 6,600.00 Factory overhead 715.75 1,237.75 1,349.75 Admin. selling & dist.30,405.00 29,085.00 32,335.00 Finance cost 100.00 120.00 200.00 Delivery van - - - Computer & Equipment - 5,500.00 - Plant & Machinery 19,787.50 15,000.00 - Total outflow 274,998.25 392,256.35375,738.35 Difference 165,401.75 54,959.65 150,187.65 Bal b/d - 165,401.75220,361.40 Difference for the year165,401.75 220,361.40370,549.05

5.5 PROJECTED STATEMENT OF FINANCIAL POSITION AS AT 31ST MARCH 2012,2013 &2014

GH¢ GH¢ GH¢ Non-current asset 17,808.75 34,280.00 30,251.25 Current asset: Inventory: Finished goods 24,915.00 37,994.00 2,294.16 Cash and Bank 165,401.75 220,361.40 370,549.05 208,125.50 292,635.40 403,094.46 FINANCED BY:

Capital 150,000.00 150,000.00 150,000.00 Income Surplus 58,125.50 142,635.40 253,094.46 208,125.50 292,635.40 403,094.46

APPENDIX COMPUTATION OF PURCHASE PRICE List price 20.80 22.00 22.00 Transport and handling 8.00 8.24 8.24 28.80 30.24 30.24

PURCHASE PRICE OF PALM OIL Cost per 20 litres GH₵ 28.80

MONTH LITRES AMT GH¢ Jan-March 1650023,760.00 April-June 3300047,520.00 July-Sept 4950071,280.00 Oct-Dec 4950071,280.00 148500213,840.00

Cost per 20 litres GH ¢30.24 Jan-March 54450 82,328.40 April-June 54450 82,328.40

July-Sept 54450 82,328.40 Oct-Dec 54450 82,328.40 217800 329,313.60

Cost per 20 litres GH¢30.24 Jan-March 54450 82,328.40 April-June 54450 82,328.40 July-Sept 54450 82,328.40 Oct-Dec 54450 82,328.40 217800 329,313.60

PROJECTED SALES Price per 20 litres GH ¢ 44.00

Jan-March 14667 32,267.00 April-June 29333 64,533.00 July-Sept 44000 96,800.00 Oct-Dec 44000 96,800.00 132000 290,400.00

5% increase Price per 20 litres GH ¢46.20 Jan-March 48400 111,804.00

April-June 48400 111,804.00 July-Sept 48400 111,804.00 Oct-Dec 48400 111,804.00 193600 447,216.00

12% increase Price per 20 litres GH ¢ 51.744 Jan-March 50820 131,481.50 April-June 50820 131,481.50 July-Sept 50820 131,481.50 Oct-Dec 50820 131,481.50 203280 525,926.00

PRODUCTION OVERHEAD Rent 120.00 132.00 144.00 Maintenance 2% of F.A 395.75 805.75 805.75 Utilities 200.00 300.00 400.00 715.75 1,237.75 1,349.75

DIRECT ALLOWANCES 3 Operations staff 2012 2013 2014 10% increase 3*11*150 3*12*150 3*12*165 4,950.00 5,400.00 5,940.00 DIRECT EXPENSES Containers and design 5,200 5,500 5,500 Cost of container 1.00 1.20 1.20 5,200.00 6,600.00 6,600.00

PROJECTED PRODUCTION COST FOR A THREE YEAR PERIOD GH ¢ GH ¢ GH ¢ Direct materials213,840.00 329,313.60329,313.60 Direct allowances4,950.00 5,400.00 5,940.00 Direct expenses 5,200.00 6,600.00 6,600.00 Prime cost 223,990.00 341,313.60341,853.60 Overheads 715.75 1,237.75 1,349.75 Production cost224,705.75 342,551.35343,203.35 TOTAL COST OF PRODUCTION Cost 224,705.75 342,551.35343,203.35 QUANTITY 148,500 217,800 217,800

Cost per litre 1.51 1.57 1.58 20 litres 20 20 20 Cost per 20 litre30.20 31.40 31.60 VALUATION CLOSING INVENTORY

MONTH Jan-March 1833*1.51 =2768 April-June 3667*1.51 =5537 July-Sept 5500*1.51 = 8305 Oct-Dec 5500*1.51 = 8305 24915

MONTH 6050*1.57 = 9498.5 Jan-March 6050*1.57 = 9498.5 April-June 6050*1.57 = 9498.5 July-Sept 6050*1.57 = 9498.5 Oct-Dec 6050*1.57 = 9498.5 37994

MONTH 3630*1.58 = 5735.4 Jan-March 3630*1.58 = 5735.4 April-June 3630*1.58 = 5735.4 July-Sept 3630*1.58 = 5735.4 Oct-Dec 3630*1.58 = 5735.4 2294.13

COST OF SALES Opening inventory- 24,915.00 37,994.00 Productioncost 224,705.75 342,551.35343,203.35 224,705.75 367,466.35381,197.35 Less closing inventory 24,915.00 37,994.00 2,294.16 199,790.75 329,472.35378,903.19 ADMINISTRATIVE SELLING AND FINANCIAL EXPENSES Allowance 3,300.00 3,600.00 3,960.00 Fuel - 840.00 1,000.00 Maintenance - 400.00 600.00

Lubricant - 100.00 300.00 Registration 150.00 - - Recruitment 100.00 - - Waterexpense 120.00 140.00 150.00 Management allowance 20,575.00 21,825.0021,825.00 Fire extinguisher 500.00 - - Office rent 360.00 380.00 400.00 Promotional cost 2,200.00 1,200.00 700.00 Office power 300.00 200.00 200.00 Planning and lunching 1,300.00 - - Research and development- - 1,000.00 Incentives to staff - - 1,800.00 Transportation 1,500.00 - - Finance cost: Bank charges100.00 120.00 200.00 Insurance - 400.00 400.00 Depreciation: Plant & machinery 1,978.75 1,978.75 1,978.75

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Computers &Equipment - 550.00 550.00 Delivery van - 1,500.00 1,500.00 32,483.75 33,233.7536,563.75 PROJECTED FIXED ASSET SCHEDULE

Plant & Equipment Delivery vanTotal Cost 19,787.50 - 19,787.50 Additions - - - 19,787.50 - 19,787.50 Disposal - - - 19,787.50 - 19,787.50 Depreciation 10% 1,978.75 - 1,978.75 NBV 17,808.75 - 17,808.75

Plant & Equipment Computers & equipment Delivery vanTotal GH¢ GH¢ GH¢

• - - - - - - - 3,957.50 550.00 1,500.00 6,007.50 15,830.00 4,950.00 13,500.00 34,280.00

Plant & Equipment Computers & equipment Delivery vanTotal GH¢ GH¢ GH¢ GH¢

0 0 0 0 0 0 0 0 5936.25 1100 3000 10036.25 13851.25 4400 12000 30251.25 INVESTMENT APPRAISAL NET PRESENT VALUE Year Net cash flow Discount factor 25% Present value 2011 -150000 1 -150000 2012 165401.75 0.8 132321.4 2013 54959.65 0.64 35174.18 2014 150187.65 0.51 76595.7 94091.28

RETURN ON CAPITAL EMPLOYED PBIT *100 CAPITAL EMPLOYED 58225.5+1978.75*100 84629.9+6007.50 *100 110659.06+10036.25*100 208125.5 292635.4 403094.46 60204.25*100 90637.4 *100 120695.31*100 208125.5 292635.4 403094.46 28.92% 30.97% 29.94%

NET PROFIT MARGIN Net profit *100 Netprofit *100 Net profit *100 Sales Sales Sales 58125.5 *100 84,509.90 *100 110459.06 *100 290400 447216 525926 20% 19% 21%

1.0ORGANISATION Adepa Palm OilCompany LimitedisaSmall Scale Businessthat weintend to register in January,2012 in Ashanti Region under the Registrar General’s Department before commencement. The proposed date to begin operation is March 2012.The capital start-up will beUS$100,000 whichis equivalent to GHc150, 000andwill becontributed equally by members. AdepaPalmOilCompany will belocated at Apemso in Juaben nearJuaben Oil Mills in Ashanti Region. Figure 1.1:OrganizationalChartofAdepaPalmOilCompanyLimited GENERAL MANAGER MARKETING OFFICER QUALITY ASSURANCE OFFICER SALES PERSONNEL FINANCE OFFICER OPERATIONS OFFICER WORKFORCE

2.0PRODUCTIDEA AND REALISATION OF SCHEDULE

2.1 PRODUCT IDEA

The formation of Adepa Palm Oil Company was motivated by our desire to add value to the taste, packaging, distribution and convenient way of handling one of the most nutritious and healthy palm oil Ghana can ever have.Although Ghana has multiple palm species, ranging from local palm nuts to other species locally called agric, it is only marketed locally to consumers in poor quality in terms of taste and package. However, the way many sellers package palm oil are outmoded, unhealthy and very uncomfortableto handle. We have as well notice the health benefit which many Ghanaians may not be aware of.The main product of this Company is Adepa palm oil which is mainly use for cooking. Adepa palm oil will be package in more hygienic environment with the rightpercentage of 2% free fat acid (FFA). It will be well package in cleanbottles and sachets.The 2% free fat acid in the palm oil has a lot nutritional and health benefits as compared to others sold in the markets. Palm Oil is 15 times richer in beta-carotene than carrots. Beta–carotenes are very important form of vitamin A that help protect our body against many diseases like heart attack, cataracts, cancers, blood disorders and help maintains good skin and fertility. The vitamin A also helps in ensuing good vision and prevents night blindness and many other types of eye problems. Therefore, we recognize this great potential to improve on the taste, package and distribution of palm oil to the Ghanaian market. Recently, the Ghanaian Market is not supplying the super markets and mini shops with a well packaged palm oil but rather done in an unhygienic way. This is the major problem that the company intends to solve through packaging and distribution of palm oil.

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Figure2.1:Realizationof Schedule of Adepa Palm Oil Co. Ltd is available in the complete project document.

NUMBER OF SCHEDULES ACTIVITY PERIOD RESPONSIBILITY 1 PLANNING a)Registration b) Office location and equipment set-up. c) ) recruitment January–February

General manager Operation officer Human Resource 2 PURCHASE RAW MATERIALS January 2012 Operation Officer 3 TEST MARKET March 2012 Marketing officer 4 LAUNCHING April 2012 Marketing officer 5 PRODUCT ENTRY April 2012 Marketing officer

3.0MANAGEMENT TEAM 3.1MANAGEMENT CREDENTIALS AND EXPERTISE AdepaPalmOil Company Limitedintendsto use competent staffthatwill render quality product and services to our target customers and these staff members are discuss as follows. 3.1.1General Manager Mrs.Margaret Obeng Asamoah wasan Auditor at the Audit Service with eight (8) years working experience. She has ACCA part 1 and she is currently studying a degree in Business Administration withaccountingoption at Christian Service UniversityCollege. She is also a legal practitioner. Roles: Ensure that procedures or business plan are being followed. Track schedules, budget and moralize the team plan and decide what to get done. Prepare financial statement and make financial forecast. 3.1.2Operations Officer Adwoa Tiwaa Nyamekyehasa diploma in human resource andwasan assistant operation manager of Nestle Ghana Limited. Her competence and good public relationship will be the right attitude for the successful running of our business. She is currently studying Business Administration with option in Human Resource in Christian Service University College. Roles: To recruit new applicants to the company. To supervise and manage teams of operations staff and activities. Making available raw materials (palm oil) for packaging anddistribution.

Drawing of compensation programmes and reward systems 3.1.3Marketing officer Patience Mintaa Darko has a marketing experience with proven record of achieving result over theyears asan assistant marketing officer atWilmar Africa Limited (producer of frytol). She has good tremendous skills and can do attitude. She is currently studying a degree in Administration with marketing option in Christian Service University College. Roles: Ensures that target customers needs are integrated in theproduct design. Setting the pricing of product, thus maintaining increase or decrease price, set discounts, packaging etc 3.1.4Finance Officer Linda Obenewaah Oduro holds a diploma in Entrepreneurship and Finance and therefore has knowledge in approving of projects that would be undertaken. She is currently studying a degree in business Administration with Banking and Finance option in Christian Service University College. Roles: Responsible for approving various projects that would be undertaken by the firm. Responsible for allocating funds for administrative duties Analysis and management of Risk. 3.1.5Quality Assurance and Technical Officer Lordina Dickens has a diploma in Total Quality Management. She was an assistant quality assurance and technical officer at Juaben Oil Mills. She is currently undergoing a degree

programme in Business Administration withaccountingoption in Christian Service University College. Roles: Responsible for strategic plan implementation of quality control procedures. Supervises quality assurance personnel and is responsible for budget and allocating resource for a division or branch. Provide procedural guidanceof various processes within the organization concerning quality control and testing of free fat acid (FFA).

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4.0MARKETING ANALYSIS 4.1BUSINESS SYSTEMSAND OPERATIONS Adepa Palm Oil Company Limited will run its business as a main distributor andpackaging of palm oil in a hygienic environment. The company will have an agreement in the form of a contract with Juaben Oil Mills where raw materials (palm oil) would be collected and packaged well in order to distribute to the target market. Adepa PalmOil Company is located at Apemso which is close Juaben Oil Mills. Juaben Oil Mills is a well known Company that deals in the production of palm oil thus extracting the oil from the palm fruits collected from three main sources namely Juaben farms, Out Growers and private individuals. Their main business is to refine the palm oil in a form of vegetable oil. Since the peak season for palm fruit is from March–August and also lean season from September–February, raw materials would always be available and enough for the consumption of the two companies. The raw material (palm oil) will be kept in a measuring tank which helps the red oil to settleand also helps to know the number of liters of the palm oil that measuring tank can contain after which the palm oil is pumped into the storage tank. Palm Oil kept in the storage tank for some time allows water to drain from the oil and settles beneath. The draining of the water from the palm oil in the storage tank is very important because it helps to reduce the free fat acid (FFA). The FFA will betested by our quality assurance personnel with the right equipment to known if it 2%, if not an increase would have some impact on taste of the oil and therefore makes it uncomfortable to enjoy.

4.1.1Production process Our production process will start with a refined palm oil which will be supplied by Juaben Oil Mills. Sample of the oil will be taken to our laboratory to be tested to know if the oil has the correct percentage offree fat acid(FFA)and also does not contain any ingredient that will be harmful to human health before it will be pumped into the storage tank. From the laboratory, the palm oil will be pumped into the measuringtankto know the exact tons and then transferred to the storage tank for the automatic sealing machine to fill the bottle and sachet and seal them. After sealing, the product will be placed in boxes and transferred to the warehouse.

Figure. 4.1: Production Process of Adepa Palm Oil Company Limited . Laboratory Test Raw material (refined palm oil) Pumping the certified palm oil into the measuring tank. Storage tank Automatic sealing machine. Warehouse Packaging is available in the complete project document.

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4.2INDUSTRY OVERVIEW 4.2.1Industry Background Our business activity falls under the Food and Beverage Industry. The Food and Beverage Industry in Ghana refers to the manufacturing, processing and the preservation of meat, fish, vegetables, oils and fats, dairy products, grain millproducts, starches and starch products, animal feeds and other manufactured food product. (World Bank 2007). 4.2.2Regulatory Restrictions The operating standards and the criteria set by Ghana Food and Drugs Board should be met. Since we fall under thisindustry, our product will meet these criteria. 4.2.3Barriers to entry and Exit. There are generally no barriers to entry and exist in the industry. Companies which intend to operate in this industry are free to start business and end freely so long as they meet the legal requirement to operate.

4.3ENVIRONMENTAL ANALYSIS 4.3.1Pest analysis 4.3.1.1Political Relatively Ghana has enjoyed peace and stability for the past 10 years. This has created an enabling environment for business to grow and realize their short term and long term objectives. These factors will have a positive impact on Adepa palm oil and will help boost our product sales. Again, agriculture is the back bone of the economy and with the Government interest and

policy to boost agriculture and food security, there is available technology and raw materials for our continuous distribution Adepa palm oil. Government with its fiscal policies statement and laws has introduce a tax regime of reliefs and incentives, such as tax holidays, carry forward loses and tax rebate for only newly established businesses. Adepa palm oil will be in its early stages and therefore will benefit from these tax incentives and reliefs so as to maximize profit. 4.3.1.2Economic The key economic indicators such as interest rate and inflation are very important to the consumption pattern of agricultural products and businesses. As a result of these, demand for our product will be high. With the current rate of inflation being a single digit (8.6%) means the prices of goods and services is not all that high andtherefore customerswill be able to afford our 4.3.1.3Social In recent times people have become more educative and sensitive to their health needs and as a result Adepa Palm Oil Company Limited will take advantage of this topackage and distribute palm oil which is of quality and will also make contributionto the nutrient value of the body. 4.3.1.4Technological The rate of technological advancement in the world is very high. Thereisa lot of advanced packaging equipment, for this reason our company believes in the state of the art technology which helps in saving time, cost andimproveson a hygienic production.

4.3.2SWOT Analysis Figure 4.2:SWOT Analysis of Adepa Palm Oil CompanyLimited STRENGTH 1.Location. Adepa palm Oil Company Limited will be located at Apemso which is near Juaben Oil Mill who will be our supplier of refined palm oil. 2.Product uniqueness in terms of taste and package. 3.Good marketing skills. 4.Adepa palm oil will beaffordable in terms of price. 5.Availability of competent qualified and experience workforce. 6.High quality refined palm oil with the correct free fat acid (FFA) 2%. 7.We will usehigh level technological machines to process and package our 8.Health benefits of our product. Adepa palm oil has multiple health benefits due to this we have the certainty that WEAKNESS 1.Undefined marketshare.That is in terms of customers. 2.Brand awareness of Adepa Palm Oil Company Limited.

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people will buy it. 9.Good customer relationship. 10.We will have hygienic environment. 11.Wewillhave a wellbuilt storage tank.

OPPORTUNITIES 1.Government incentives and initiatives for local production especially companies that are into the processing of agricultural product. 2.Readymarket for our palm oil. 3.Growing demand for our company 4.Politically, there is peace and stability 5.Government fiscal policies statement and laws hasintroducedtax holiday for new businesses.

THREATS 1.Competitive rivalry 2.Thebargainingpower of buyers.

4.3.3CompetitorAnalysis 4.3.3.1Existing Competitor With Adepa Palm Oil Company Limited line of product, our direct competitor will be traditional market sellers. Thesesellers seek to achieve profit at the end of sales. Though there are challenges, we will accept and bring out quality product at affordable price to face competition from our already existing competitors. Figure 4.3:Analysis of ourcompetitor strength and weakness.

STRENGTH 1.Already establish distribution chain. 2.Establish market for product WEAKNESS 1.The palm oil is not of quality 2.The palm oil does not have the right percentage of FFA. 3.High product price 4.3.3.2Potential Competitors Our potential competitors will be companies who marketvegetable oilfor instance Wilmar Africa Limited, marketing and distribution of frytol. As the awareness of Adepa Palm Oil increases, we expectthat thesecompanies that are into the marketing and distributionof vegetable oil will branch to Adepa Companyline ofproduct.

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