AGALIAWAMU GIANT GROUP

About us

AGALI AWAMU GIANT GROUP was incorporated as a limited liability company in 2003 formerly operating as AGALI AWAMU GENERAL HARDWARE MASAKA. The company has had the same directors since its incorporation. It’s situated on plot 32, Buddu street masaka town on your way to new taxi park masaka Uganda. The company provides a wide range of building materials and ensures that the expectations of every client are met through outstanding customer service, increased flexibility, and greater value. It has invested vastly in its human resource that have helped greatly in handling contractors, wholesalers, retailers and all the stakeholders through provision of product knowledge and resolving any unclear issues that may arise hence rated one of the leading hard wares in western Uganda. Vision To be the premium hardware store in southern Uganda Mission AGALI AWAMU GIANT GROUP UGANDA desires to build a stronger world through better quality products to satisfy customer needs. There is an increasing growth in the small and medium scale businesses and it is to these businesses that we owe a duty to provide the best services throughout the exchange process. We strive to achieve a significant market share while remaining a responsible company whilst performing the following; • Ethically market our products so that we are recognized by our customers as the leading suppliers of quality products • Provide our products at affordable prices • Engaging the most skilled manpower to maintain relations with our channel members • Enhancing our clients’ businesses through providing the basic fundamentals of any business because they are the reason we exist. Commitment to Quality Products AGALI AWAMU GIANT GROUP UGANDA is committed to providing quality products to satisfy diverse needs of our customers. Our customers can be confident that, doing business with us will meet and exceed their expectations. Experience and core competences The company has skilled and semi-skilled personnel well motivated to steer the company into a foreseeable future alongside serving our customers to their expectation. Our ability to supply numerous projects and institutions has resulted in development of our staff.

GROUP PROFILE

EXECUTIVE SUMMARY

Agali Awamu giant group is a new circle of several subsidiary corporations like • Maria general hardware masaka • Agali Awamu wood world. • Agali Awamu cement store. • Agali Awamu hardware masaka. • Agali Awamu painters, which are meant to supply basing to customers wish and needs. The store will sell hardware materials of all kinds, quality tools, paint, and furniture world class painters. The business will make revenue and a profit by servicing its customers not only with needed hardware but also with expert advice in the use of any product it sells. Agali Awamu giant group will be operated by its sole shareholder, Masembe James. The company will have a total of six employees. It will sell its products in the local market. Customers will buy our products because we will provide free advice on the use of all of our products and will also furnish a full refund warranty. Agali Awamu giant world, will sell its products in the agali Awamu giant group stores staffed by six sales representatives. No additional employees will be needed to achieve its short and long range goals. The primary short range goal is to open branches upcountry and in the neighboring districts of masaka by February 2014. Masembe James will invest 800,000,000 ugx in the business. In addition the company will have to borrow 100,000,000 ugx during the first year to cover the investment in inventory, accounts receivable, and furniture and equipment. The company will be profitable after six months of operation and should be able to start repayment of the loan in the second year. THE BUSINESS The business will sell hardware materials of all kinds, quality tools, paint, and house wares. We will purchase our products from three large suppliers i.e sadolin paints Uganda, roofing’s, Uganda bati, hima cement, Ssembule steal mills. In general our customers are homeowners, contractors, and big institutions like churches, schools, and hospitals etc that do their own renovations maintenance. Our business is unique in that we will have a complete line of all hardware items and will be able to get special orders by overnight delivery. The business makes revenue and profits by servicing our customers not only with needed hardware materials but also with expert advice in the use of any product we sell. Our major costs for bringing our products to market are cost of merchandise of 36%, salaries of 3,200,000 per month and occupancy costs of 6,500,000 ugx. Agali Awamu giant group's retail outlet is located in masaka town opposite SEMA hardware masaka next to farmer’s budget to masaka new tax park (plot 32, buddu street masaka). Our location helps facilitate accessibility from all parts of town and reduces our delivery costs. The store will occupy 7500 square feet of space. The major equipment involved in our business is counters and shelving paint, a computer, a paint mixing machine, and a truck. THE MARKET Agali Awamu giant group will operate in the local market. There are more than 15,000 potential customers in this market area. We have three competitors who control approximately 56% of the market at present. We feel we can capture 75% of the market within the next four years. Our major reason for believing this is that our staff is technically competent to advise our customers in the correct use of all products we sell. After a careful market analysis we have determined that approximately 60% of our customers are contractors and 40% are other customers like schools, hospitals, churches and painters. The percentages of customers that fall into the following age categories are: The reasons our customers prefer our products is our complete knowledge of their use and our full refund warranty. We get our information about what products our customers want by talking to existing customers. There seems to be an increasing demand for our product. The demand for our product is increasing in size based on the change in population characteristics. SALES Agali Awamu giant group, we currently employs four sales people and will not need any additional personnel to achieve our sales goals. These salespeople will need several years experience in colour mixing, after sales service, packaging and sweet talking to customers and explain to customers product usage. We expect to attract 30% of our customers from face to face marketing, 5% of our customers from local directories, 5% of our customers from the fliers issued by our painters, 10% of our customers from family and friends and 50% of our customers from current customers. The most cost-effective source will be current customers. In general, our business is growing. MANAGEMENT We would evaluate the quality of our management staff as being excellent. Our manager is experienced and very motivated to achieve the various sales and quality assurance objectives we have set. We will use a management information system which produces key inventory, quality assurance and sales data on a weekly basis. All data is compared to previously established goals for that week and deviations are the primary focus of the management staff. GOALS IMPLEMENTATION The short term goals of our business are: 1. Expand the store by February 2014. 2. Reach our breakeven point in two months 3. Have sales of 600,000,000 ugx in the first six months In order to achieve our first short term goal we must: 1. Borrow 100,000,000/= and event it in the business in order to boost its performance. 2. Order a complete inventory from our big suppliers like sadolin, hima, roofing’s, crest tanks etc by January 2014. In order to achieve our second short term goal we must: 1. Advertise extensively in September and October 2014. 2. Keep expenses to a minimum In order to achieve our third short term goal we must: 1. Promote daily sales for the Christmas season 2. Keep good customer traffic in January and February The long term goals for our business are: 1. Obtain sales volume of 1,542,000,000 ugx in three years 2. Become the largest hardware dealer in the city and the country at large. 3. Open other branches upcountry. The most important thing we must do in order to achieve the long term goals for our business is to develop a highly profitable business with excellent cash flow. FINANCE Agali Awamu giant group Uganda faces some potential threats or risks to our business. They are discount house competition. We believe we can avoid or compensate for this by providing quality products complimented by quality advice on the use of every product we sell. The financial projections we have prepared are located at the end of this document. JOB DESCRIPTION: GENERAL MANAGER The General Manager of the business will be the president of the corporation. He will be responsible for the complete operations of the business which is owned by the corporation. A detailed description of his duties and responsibilities is as follows: Sales Train and supervise the four sales people. Develop programs to motivate and compensate these employees. Coordinate advertising and sales promotion effects to achieve sales totals as outlined in budget. Oversee purchasing function and inventory control procedures to insure adequate merchandise at all times at a reasonable cost. Finance Prepare monthly and annual budgets. Secure adequate line of credit from local banks. Supervise office personnel to insure timely preparation of records, statements, and all government reports, control of receivables and payables and monthly financial statements. Administration Perform duties as required in the areas of personnel, building leasing and maintenance, licenses and permits and public relations.