DEBREMARKOS

UNIVERSITY INSTITUTE OF TECHNOLOG

SCHOOL OF MECHANICAL AND
INDUSTRIAL ENGINEERING

ENTREPRENEUR
INDIVIDUAL
ASSIGNMENT
NAME HAMSALU HUNDUMA
ID 0777-10
STREAM MOTOR VEHICLE
1) In this case study assignment, the candidate/students should select one
medium scale business center around debre Markos city and make a case
study on assigned topic “a critical analysis of the causes of business
failure on selected medium scale business center and find possible
solutions” .The case study should be able to introduce about the
business center, try to highlight the general way of business failure, the
main problem that the business going to failed, causes of failure of the
business, and try to find possible solutions for the failure of selected
business enterprise .In addition, based on the assigned topics students
can literate the case study from books, magazines, any data from the
business center that are published before and discuss the current status
and future trends within selected business center. The project / case
study will be written as a scientific paper and should not exceed 10
pages.

My case study is on juice production at debremarkos.

a critical analysis of the causes of business failure on selected medium
scale business center and find possible solutions is as follow;

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 INTRODUCTION

Fruit juice processing enterprise business will be run as partnership. The

enterprise offer high quality juice for customers. Juice will be available for sale
at wholesalers and retailers. The price is affordable should not annoy or exploit
customers So that customers are willing to pay. Juice providing enterprises will
provide its product at market price by identifying and listing each type of fruit
juice with their fair prices. The main job in this business is purchasing and
processing quality juice, preparing warehouse to store the product, monitoring
and auditing sales of business. The main objective of the business is to provide
quality of juice in order to get the expected profit and to satisfy the customers,
have a claim to create job opportunity, providing complementary and with fruit
juice and plans to expand the business in different area and also to expand the
initial business in size.
In the beginning year the business forecast some profit. In the second year and
third year we expect that there will be increment of profit due to further
increases in the number of customers and get acceptance. The overall and
general objectives of the business are mainly to achieve and exceed sales
forecasts to enable the business to be operating at capacity, so that the business
extended the types of fruit juice that enables the business to meet the customer
need.
1 .Lack of research
For the production of vegetable juice it is necessary to identify the nearby
ingredients .because if it comes from a distance it can expose us to additional
costs.it can also dry or cool .this can change the taste. Its taste even our
customers may be upset if we change. it also exposes us to losses.
One of the most common reasons for start-up businesses to fail is that there is
no market need for their product or service. So, one of the most important first
steps you need to take when you are setting up a business is to conduct
research into everything from the existing market, current and future trends in
your industry, to who your competitors are, who your target audience is and
what will motivate them to do business with you. 

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2 .Not having a business plan
A good business plan can help you get clear on the direction of your business,
identify strategies and an action plan for you to achieve your business goals,
and help you secure the financial backing you need to start or grow. Writing a
business plan is an important step towards setting up your new business and
achieving your business goals. On the flipside, without a plan your business is
vulnerable to one of the most common reasons for small businesses to fail
mismanagement. Having a business plan will also help you stay focused and on
track. for example, we should use these methods if possible to achieve our
business. It uses various types of promotional, or inducement mechanism to
attract other customers. Continuous monitoring of our service and expenses. It
is by society for society! Provide an affordable cost with high quality, by
reducing the expenditure cost of transportation for the customers. Satisfying
customer interests by providing quality service. The presence of good market
price due to the weakness of a competitors in the area.. There are many
customers, because there is no other provider that provides this service. It gives
service for long hour.

3. Having the business funding they need

Another condition depends on our ability to start a business. we must recognize

our capabilities and avoid excessive energy expenditure. fruit juice processing
provides enterprise planned to construct and establish a company with capital
of 500,000 birr. The business requires means of acquiring this initial capital by
borrowing from financial institution like: banks, personal capital, and micro
finance institution.
Running out of cash or not understanding what costs are involved in setting up
and keeping a business running are a common trap for many small business
owners. And the reality is that not every small business owner has the capital
to cover the costs associated with starting a new business. So, understanding
the fixed and variable costs associated with starting your business should be
taken into account when you write your business plan.  Talking to a small
business banking expert will help you understand what financial assistance you
may need whether you need to apply for a business loan, equipment finance or
find out about government support for small business owners.

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Tip: Never forget that ‘cash is king’.  Even profitable businesses fail due to lack
of cash flow, so it is important to negotiate across all aspects of your business.
Don’t wait too long for your customers to pay for your goods and services, and
always try to negotiate payment terms with your suppliers that are consistent
with the cash needs and demands of your business.

4. Financial mismanagement

In business in knowing the money is the most important thing so the money
man should know the science of money. the skill of having money should be
an educated person. Sometimes the mistake is that the owner of the property
has the money and this situation leads to a bad failure when an accident
occurs.
Aside from not having the business funding you need to start up your business,
not understanding how to manage your cash flow or stay on top of all your
financial responsibilities as a small business owner can be a recipe for disaster.
Cash management must be a top priority for small business owners because if
your cash flow doesn’t balance out, you’ll find yourself in deep water fast.
That’s a business risk you want to avoid at all costs.

5. Poor marketing 

Unfortunately, many start-ups think it is a case of ‘build it and they will come’
when it comes to promoting their new business. A thriving small business needs
a regular stream of sales and customers and you need a marketing plan to do
that. Depending on the nature of your business and who your target audience
is, a good marketing strategy will have the right balance when it comes to
attracting new customers (acquisition) and building a base of loyal existing
customers (retention).  Striking a balance between ‘traditional’ offline marketing
activities (such as advertising, direct mail, letter box drops, local area
marketing, posters and flyers, business to business marketing) and digital
marketing (including having a website for your business and using social media
for business pages to target your audience).  

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The good news is that there are a number of ways to market your small
business on a budget, but it’s important that you monitor and measure the
results to avoid wasting valuable funds.  

6. Not keeping abreast of customer needs or the competition 

The fruit juice business enterprise provides fruit from debre markos local
market. This product is sold to customer around the debre markos town, debre
markos University, Staff members and to other places. This product also sold to
small enterprise found around its environment. The product of our business is
fruit juice product. So, any individual who has the potential can undertake the
activities. The brand of the business is designed to be fruit juice processing
providing enterprise; it is named so because its name and the service it gives
are much more related and attractive. Since it is natural product the people are
willing to use the service. The location of the business is debre markos town.
The location is preferred for the following reasons
 There is no such business enterprise around this area.
 There are many customers for the service.
 Different types of raw materials are available
 Weather condition is comfortable.
 The transportation cost is less.
In order to accomplish the service effectively and efficiently our business hires
workers based on the following criteria.
 Experience
 Health
 Conduct
 Educational level
 Age
 Ability
Building a loyal customer base requires knowing who your target customers are
and how you can connect with them. But it’s also vitally important that you
have the measures in place to stay on top of what your customer needs are. If
you fail to understand what your customers expect from you (through customer
feedback surveys, monitoring and responding to comments on your social media
business pages, and simply talking to your customers) you risk losing those
loyal customers to your competitors. 

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Speaking of competitors, you also need to keep track of what your competitors
are up to because if they do a better job of fulfilling your customers’ needs,
you’ll lose business to them. 

7. Failing to adapt  

In small business, as in life, things don’t always go to plan. Whether it’s

responding to changing trends within your industry, unexpected events (like the
COVID-19 pandemic or natural disasters), the impact of broader economic issues
(such as changes to interest rates, government assistance and support), or even
changes to your personal situation (due to illness or other challenges), it’s
inevitable that your business will face challenges along the way. You may have
to pivot away from the wrong product or service, a bad hire or an unfortunate
business decision in order to survive. The most important thing in this context
is to stay attuned to what is happening inside and outside your business and be
ready to respond – quickly! 

8. Growing too quickly 

Not being prepared for your own success can also be a reason to fail. Part of
understanding the business risks associated with your start up business is
knowing what you will need for example, in terms of staffing, technology,
business funding, supply chain management to be prepared for your future
growth plans.  

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9. Failing to hire and retain the right people 

One of the biggest challenges that small business owners face is hiring,
managing and retaining staff. Establishing a diverse team with complementary
skill sets, the right attitude and values aligned with your business from the
start will help you in the long run. It’s really important that you not only
attract the right people but create a work culture that makes them want to
stay. 

10. Not asking for support 

Given the number of challenges there are to overcome, starting a new business
can be both exhilarating and terrifying. So, it’s no wonder that many small
business owners feel alone, overwhelmed or on the verge of losing focus and
giving up. But there are a lot of places to turn to for help including your
accountant or business banking expert, getting access to government support for
small business, finding a business mentor or local business-to-business support
group to ask for help. Signing up for an online business course or tapping into
some of the best business podcasts around is also a good way to learn tips from
other small business owners. Ultimately, whether a business fails or succeeds is
heavily influenced by its management capability. Setting up and running a
business is vastly different to being a good employee. Unfortunately, it’s not
uncommon to see new businesses fail even when the owners are familiar with
the industry and/ or business that they buy or set up. It’s critical to undertake
in-depth research across every aspect of the business to ensure your chances of
success are maximized.

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Conclusion  

Given the number of challenges there are to overcome, starting a new business
can be both exhilarating and terrifying. So, it’s no wonder that many small
business owners feel alone, overwhelmed or on the verge of losing focus and
giving up. But there are a lot of places to turn to for help including your
accountant or business banking expert, getting access to government support for
small business, finding a business mentor or local business-to-business support
group to ask for help. Signing up for an online business course or tapping into
some of the best business podcasts around is also a good way to learn tips from
other small business owners. Ultimately, whether a business fails or succeeds is
heavily influenced by its management capability. Setting up and running a
business is vastly different to being a good employee.

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2)After graduation you may go in to business by starting your own business
rather than to become an employment. What types of business are you
interested in starting? Where would it be located (which part of the city in
Ethiopia)? And why? What would be the main a goal for your business? Briefly
explain those questions.

My business is manufacture of small tractor

The reason I wanted to produce tractors in Ethiopia was to support the industry
in Ethiopia. Agriculture as per the current situation, the farmer is working in a
backward manner and now the farmer will get better if he gets a small tractor
at reasonable prices. For now, the farmer works hard but gets little, and I think
if the situation improves, his income will improve. The farmer is, privately,
self-sufficient and the income of the country increases, because agriculture is
the backbone of our country. Once every farmer is food self-sufficient, supply
his produce to various markets and industries. Moreover, if he works hard, he
can even be exported. The reasons I tried to touch on above are the reasons I
chose manufacturers of tractor manufacturers, in my opinion.
Where I want to manufacture Addis Ababa. Because it is the center of the
capital of the country and it is distributed equally to all farmers.

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3) Online marketing is one of the most important systems of marketing to sell
products of entrepreneur easily and to simplify work of one’s organization in
Ethiopia?
A) Is online marketing preferable other than other marketing system?

Digital marketing is generally more cost-effective and can be more targeted,

while traditional marketing can be more effective at reaching a larger audience.
It's important to consider your budget and target market when deciding which
type of marketing to use. Digital marketing benefits businesses of all sizes by
giving access to the mass market at an affordable price. Unlike TV or print
advertising, it allows truly personalized marketing. Digital marketing also comes
with a number of challenges you should be aware of. The main advantage of
digital marketing is that a targeted audience can be reached in a cost-effective
and measurable way. Other digital marketing advantages include increasing
brand loyalty and driving online sales.

 The benefits of digital marketing include:

 Global reach a website allows you to find new markets and trade
globally for only a small investment.
 Lower cost a properly planned and well-targeted digital marketing
campaign can reach the right customers at a much lower cost than
traditional marketing methods.
 Tractable, measurable results - measuring your online marketing with
web analytics and other online metric tools makes it easier to establish
how effective your campaign has been. You can obtain detailed
information about how customers use your website or respond to your
advertising.
 Personalization - if your customer database is linked to your website,
then whenever someone visits the site, you can greet them with targeted
offers. The more they buy from you, the more you can refine your
customer profile and market effectively to them.
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  Openness - by getting involved with social media and managing it
carefully, you can build customer loyalty and create a reputation for
being easy to engage with.
 Social currency - digital marketing lets you create engaging campaigns
using content marketing tactics. This content (images, videos, articles) can
gain social currency - being passed from user to user and becoming viral.
 Improved conversion rates - if you have a website, then your customers
are only ever a few clicks away from making a purchase. Unlike other
media which require people to get up and make a phone call, or go to a
shop, digital marketing can be seamless and immediate.

B) What are the most drawbacks of online marketing for costumers?

Disadvantages of digital marketing

Some of the downsides and challenges of digital marketing you should be aware
of include:

 Skills and training - You will need to ensure that your staff have the
right knowledge and expertise to carry out digital marketing with
success. Tools, platforms and trends change rapidly and it's vital that you
keep up-to-date. 
 Time consuming - tasks such as optimising online advertising campaigns
and creating marketing content can take up a lot of time. It's important
to measure your results to ensure a return-on-investment. 
 High competition - while you can reach a global audience with digital
marketing, you are also up against global competition. It can be a
challenge to stand out against competitors and to grab attention among
the many messages aimed at consumers online. 
 Complaints and feedback - any negative feedback or criticism of your
brand is can be visible to your audience through social media and review
websites. Carrying out effective customer service online can be
challenging. Negative comments or failure to respond effectively can
damage your brand reputation.   
 Security and privacy issues - there are a number of legal considerations
around collecting and using customer data for digital marketing purposes.
Take care to comply with the rules regarding privacy and data

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protection. 
 

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