Business idea to start a company sourcing cereals from Uganda to south South South Sudan

1. GREAT FRIENDS COMPANY
(GFC)
NAMES
 BUTELE POLINO
 ENOCK KASIMBAZI
 ROBERT ANTIPAS

2. Overview
 Background
 Mission, vision, goals and values
 Pestle analysis
 Scenarios
 Porters 5 forces
 Strategic capabilities
 Market prices
 Conclusion
GFC
Ltd
Finance
E.J
Purchase
& logistics
R.A
Marketing
and sales
B.P

3. Background
 Founders: Butele Polino, Enock Kasimbazi and Robert Anitpas
• Date of Founding: August, 2016
• No. of employees: 11 employees ( 3 founders, 2 drivers, 6 store keepers )
• Business: Sourcing cereals from Uganda (Lira, Masindi) to South Sudan (Torit, Yei
and Juba)
• Area of need: Food
• According to USAID 2013 only 4% of S. Sudan fertile land is cultivated, producing only
0.5 metric tones per hector
• According to AFDB 50% of South Sudan needs are imported, with 40% on cereals is
imported from Kenya, Uganda and Ethiopia.
 47% of household= food security, 37% moderately & 12% severe food insecurity.
Centeral equatorial depend on 50% market supply of food (WFP 16th August, 16 )
 98% household in Juba reported market as their primary source of food, only 13%
cultivated on subsistence. (according Juba Urban food security and nutrition analysis of
2015) Traders reported a signafcant decrease in stock of staple and decrease in the
number of traders.

4. Background
Approach to this need
 Our company will source cereals (maize) from 2 sources in Uganda
 Goods will be loaded on lorries for transportation to South Sudan
 Goods will be offloaded at rented stores
 Sold to customers as affordable prices (wholesalers and retailers)
Target market: South Sudan Community
Market segmentation
 Central equatorial states; that is Yei and Juba. (98% dependence on market
supplies, central location)
 Eastern Equatorial state like Torit town. (53% of the people consume cereals,
near to areas of supply, shortages and high demands for food due to this
shopkeepers were reportedly rising prices)

5. Our Mission
& vision
Our Mission
“Our mission is to explore new developing markets by supplying
quality and affordable staple food crops from areas of surplus to areas
of scarcity in order to satisfy our customers’ demands and enhance
food security. ”
Our Vision
“Our vision is to be a leading reliable company in supplying quality and
affordable staple food in order to meet our customers’ demands”

6. Our Values &
goals
Our values
Integrity, Committed to quality, Customer focused, accountability & accessibility
Our goals
 To explore new developing markets within the East African region
 To bridge the gap between scarcity and surplus areas
 Our aim is to ensure steady, reliable supply and increase our contact with
our final customers and supply source through vertical integration
(backward & forward integration)
 Our goal is providing affordable and high quality staple food and set in
place reliable quality control measures in order to ensure customer
satisfaction

7. Pestle
analysis
Political factors
• Political instability
• Good relationship between two
gov’ts (favorable policies)
Economical factors
• High inflation
• High demand for food stuffs
• Difficulties in acquiring hard
currency
• Devaluation of currency
• Dependency on imports
Social factors
• Consumption habit (prefer staple
food)
• Prefer market stuff than farming
• Youth not engaged in farming
projects
• Cultural mindset (threating
businessmen)
• Migration of citizen to seek refuge
Technological factors
• The development of accounting
soft wares which can help manage
our financial books.
• Possibility of setting our website
and online ordering
Environmental factors
• Availability of strategic locations
• The weather is favorable for
business
• Poor infrastructure .e.g. roads
Legal factors
• Less bureaucracy in starting
companies.
• Policy or law changes are often
and can affect business

8. Scenarios
SCENARIO A
• Fall in demand
• High substitute effects
• Business security
• Market price rise
• Weak firms exit
SCENERIO B
• High scarcity of hard currency
• Business insecurity
• High market prices
• Many firms exit
• Depopulation
SCENERIO C
• New entrants of firms
• High substitution effect
• Subsistence farming practices
• High competition
• Favorable circulation of currency
• Business security
SCENERIO D
• Business insecurity
• Migration of people to other
countries
• High demand for food
Inflation
Political stability Political instability
High
Low

9. Strategies
for
scenarios
Strategy for Scenario A
 High prices to cover cost with customer focus
 Long term plan to invest in agriculture projects in South Sudan
Strategy for Scenario B
 Invest in other peaceful countries
 Temporary shut down of the business till peace pickup
Strategy for Scenario C
 Vertical integration to strengthen our competitive advantage
 Export to other countries .e.g. Northern Kenya
 Diversify our business
Strategy for Scenario D
 Temporal closure in central equatorial but continue in eastern equatorial
 Increase stock in our stores in Uganda, involve processing into finished good
for better storage and adding value

10. Porters five
forces
Threat of entry
Low due to political instability and due to barrier of high capital requirement
May pick up when the political situation stabilizes
Suppliers power
Supplier power will be moderate (we will buying from the market)
Threat of substitute
Low now due to instability but may be high during peace times because people
may start farm practices
Buyers’ power
Low due to high dependency on imported goods (only 4% of land is cultivated)
Competitive rivalry
Low due to instability, significant reduction of key staple food in stores and
decrease in number of traders

11. Strategic
Capability
Resources needed Competences needed
2 trucks/Vehicles Marketing skills
3 stores Good relationship with suppliers &
customers
3 computers Financial management skills
11 employees PR management skills
Cash (capital) Inventory management skills
3 Motor bikes Flexibility & reliability skills
3 offices Intercultural competence

12. Distinctive
Capabilities
needed
Value
Reliable, quality and affordable supply to customers, processing food, Low
operational costs & supply relation management
Rarity
Educational skills, financial management using accounting software
Inimitability
Knowledge on business orientation, business organization (internal
linkage), financial management using accounting software (quick books)
Organizational support
Internal linkage, trust mutual relations with outside the organization,
training

13. Market
prices
Market place Retail price/tone ($) wholesale
price/tone($)
Masindi (Uganda) 241 226
Lira (Uganda) 300 225
Yei (South Sudan) 692 623
Juba (South Sudan) 484 415
• Distance Lira to Juba is 402.3 km
• Distance from Masindi to Yei 655 km

14. Conclusion
The external environment has both pros and cons towards our business
The need of the people is so alarming
With the business management skills we have, we are ready to face the challenge
Publication bibliography
Crisis in South Sudan | Oxfam International (16-Aug-16). Available online at
https://www.oxfam.org/en/emergencies/crisis-south-sudan, updated on 16-Aug-16, checked on 16-Aug-16.
FAO - News Article: Protracted conflicts causing alarming spikes in severe hunger. Available online at
http://www.fao.org/news/story/en/item/427423/icode/, checked on 16-Aug-16.
South Sudan: Food Insecurity - 2015-2016 (16-Aug-16). Available online at http://reliefweb.int/disaster/ce-2015-
000183-ssd, updated on 16-Aug-16, checked on 16-Aug-16.
South Sudan’s Greenbelt (16-Aug-16). Available online at https://www.usaid.gov/news-information/frontlines/sudan-
south-sudaneducation/south-sudan%E2%80%99s-greenbelt, updated on 16-Aug-16, checked on 16-Aug-16.
SUDAN, SOUTH: Food Security & Nutrition Monitoring System.Available online at
http://documents.wfp.org/stellent/groups/public/documents/ena/wfp282608.pdf?_ga=1.22184955.1765493428.14713
64440, checked on 16-Aug-16.
Turning to Agriculture (16-Aug-16). Available online at http://reliefweb.int/report/south-sudan/turning-agriculture,
updated on 16-Aug-16, checked on 16-Aug-16.
vicn: Country food information. Available online at http://nutrition.asetts.org.au/resources/Element-3-1-FactSheet-
14.pdf, checked on 16-Aug-16.