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1. melusiknowledgebenhildatarirotakudzwaisheanopabruceshannisrejoice@entrepreneurial development skills2019
UNIVERSITY OF ZIMBABWE
FACULTY OF COMMERCE
DEPARTMENT OF BUSINESS STUDIES
A BUSINESS PLAN
TOBBACO PROCESSING PLANT SETUP IN ZIMBABWE
Submitted by
NAME SURNAME REG NUMBER PROGRAMME
1.REJOICE N MAPAURE R186135X HBBSMKTC
2.SHANNIS MAGWEREGWEDE R1811129 HBBSMKTC
3.BRUCE GOPFA R185952T HBBSMKTC
4.ISHEANOPA V MASVINA R186145X HBBSMKTC
5.TAKUDZWA MANYIKA R186139H HBBSMKTC
6.TAKUDZWA GOCHE R186020M HBBSMKTC
7.TARIRO MASONA R1811054 HBBSMKTC
8.BENHILDA MAVAZA R185997P HBBSMKTC
9.KNOWLEDGE NGWENDE R1813836 HBBSMKTC
10.MELUSI MASUKUME R186132C HBBSMKTC
COURCE MANAGER DR. S RUTURI

2. melusiknowledgebenhildatarirotakudzwaisheanopabruceshannisrejoice@entrepreneurial development skills2019
USING COSTAR MODEL
 CUSTOMERS
1. Government
2. Foreign countries
3. General public(specifically smokers)
Market segment
Segmenting Style Description Targeted group
Demographical include, age, generation and
social class
 Customers
between 18-25 years old
 Foreign countries
Developing Developed
20% of
processed
tobacco
80% of our
processed
tobacco
Psychographic Psychographic segmentation is
group of customers based on
their lifestyle such as
 activities,
 interests,
 opinion
 Customers
77% of daily smokers are daily
smokers by age 20.
 Government
requires tobacco in the
manufacturing of medical
treatments
Rate of usage of our processed tobacco

3. melusiknowledgebenhildatarirotakudzwaisheanopabruceshannisrejoice@entrepreneurial development skills2019
EXPECTED REVENUE CUSTOMERS $70MILLION
FOREIGN COUNTRIES $140 MILLION
GOVERNMENT $120 MILLION
TOTAL $330 MILLION
 OPPORTUNITIES
CONSUMERS FOREIGN COUNTRIES GOVERNMENT COMPANY
 Continued
supply of
cigaretes
 Affordable
prices of
tobacco
cigaretes
 Promotes
specialization
 Revenue
generation
 Favourable
Balance of
Payments
 Reduced
burden on
importation
 Foreign
currency
generation
 Compete with
international
companies
 Profit
maximisation
 SOLUTIONS
1.Exporting of processed tobacco
2.Reduced risk of packing non tobacco related materials
3.Offer subsidies or input schemes to farmers to increase supply of tobacco
SCHEME TOTAL INPUT PRIZES FARMERS RETURNS TO COMPANY
A 2 HACTRE($3200 USD) $4000 USD
B 1 HACTRE($2000 USD) $2500 USD
0
20
40
60
80
100
120
Customers Foreign countries Government
RATE OF USAGEOF OUR PROCESSED TOBACCO
Own consumption For exportation
R
E
V
E
N
U
E
$

4. melusiknowledgebenhildatarirotakudzwaisheanopabruceshannisrejoice@entrepreneurial development skills2019
4.Offer consultancy to tobacco buyers companies such as Tribac and Mashonaland tobacco
Company.
 TEAMS
 Shareholders
 Government
 Insurance companies
 Small to large scale farmers
 Banks
 ADVANTAGE
 Internationally competent due to use of advanced machinery
 Foreign currency earnings since tobacco is demanded all around the world.
 Sustained supply due to subcontracting with farmers
 RESULTS
Estimated Revenue $330 000 000
Government expenses
 Coperate tax
 Company registration
Company expenses
($20 000 000)
($10 000 000)
($40 000 000) ($70 000 000)
PROFIT $260 000 000
COMMENT
The business is profitable because our net profit is favourable

5. melusiknowledgebenhildatarirotakudzwaisheanopabruceshannisrejoice@entrepreneurial development skills2019
PROBLEMS
 exporting raw tobacco.
 To process the remaining
52% of raw tobacco which
is not processed by TPZ
 Processing bottlenecks that
might arise if TPZ ceases to
process.
SOLUTIONS
 Processing tobacco to
fetch a high market price
 Opening processing units
near famers for easy
accessibility
 Benchmarking
international processing
giants performance
UNIQUEVALUE PROPOSITION
 Produce quality, tested
and unique processed
tobacco products to our
key customers
KEY METRICS
 Producing processed
tobacco
 Selling cigarettes free
from Non tobacco
related material
CHANNELS
 Sales agents
 Physical
interactions with
other countries
 Social media
marketing
 Company
websites
CUSTOMER
SEGMENTS
 Government
 Foreign
countries
Developed
countries
Developing
 General
public
Unfair Advantage
 Clear market lines
 Proximity to
customers
COST STRUCTURE
 Taxes
 Transportationcosts
 Marketing
 Wagesand salaries
 Procurementcosts
 Rentals
REVENUE STREAMS
 Exportation revenue
 Salesfrom processedtobacco products
 Subcontracting revenue