1.

Executive summery

This proposal is prepared by KEMART TRANSPORT SERVICE plc to Ethiopian Tele

Communication Corporation in order to ask a four digit short call number.

The reason for this short call number is to participate in transport agent business in
Oromia region south east shoa zone Adama/Nazret city.

The business is new in Nazret/Adama city and it will be managed by well-educated and
experienced management teams.

KEMART TRANSPORT SERVICE PLC has five shareholders and each of them has an equal
share amount of 200,000 (Two hundred thousand ETB) and totally the company has a
1,000,000 (One million ETB) capital.

The main objective of the study is to make the transportation safe, to mitigate the price
variation, to make transportation accessible 24/7 in general to standardize the city
transport service and to earn revenue to the promoter.

The implementation of the business has many benefits to the community and to transport
service providers as a result to this the city mayor, the city citizens and the transport
service providers assent the business.

When the plc get this four digit short call number the plc shares the income to Ethiopian
Telecommunication Corporation at 70/30 percentage and the tariff per minute will be 3
birr.

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 2. Establishment of the plc
KEMART TRANSPORT SERVICE Plc is established on late June 2012 e.c in Adama city with
registered capital of 1,000,000.00(one million ETB) by 5 shareholders with 200,000(Two
hundred thousand ETB) equal share each.

The plc all over work is run through the general manager namely Fitsum Assefa. Like any
business the company established to make revenue by rendering service for the public
mean while this company provides many advantages for the public like creation of job
opportunity, playing a vital role in social responses, helping peoples to own capital and the
like.

3. Mission, Vision and core values of the company

3.1 Mission
Providing safe, on time and customer need transport services making the plc profitable and
expand the company to the rest parts of the country.

3.2 Vision
To become one of the best transport agent in peoples and freight transport in all over
Ethiopia.

3.3 Core value of the company

KEMART TRANSPORT SERVICE plc has its own core values in relation to intercompany,
Intera Company and with its customers as a result to this these core values of the company
are as follows:-

 Honesty
 Integrity
 Fair price for peoples and freight transport
 Competitive rate for taxi and bajjag drivers
 Accountability and transparency

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 4. Objective of the study
This proposal is held by KEMART TRANSPORT SERVICE plc to Ethiopia Telecommunication
Corporation in order to ask a four digit short call number in order to work as a transport
agent in Oromia region south east shewa in naztet/adama city.

In order to participate in transport agent business there is a need for short digit call
number for call center and a need for mobile application.

However when one company or any promoter get a four digit short call number he will
share the phone call income to Ethiopian Telecommunication with 70/30 system and the
price per minute will be 3 birr.

5. Marketing analysis
The business is new in Adama/Nazret/ city due to this and other factors it may be difficult
to enter the market but, it is also an opportunity for the company for becoming the pioneer
one as a result to this there will be a higher demand within the sector b/c there are many
problems are there currently.

In order to participate in one market any one should clearly identify the opportunities and
threats of the market accordingly to this there are many opportunities within the city for
the sector these are:-

 Security issues:- this means that peoples(passenger) are not confident on

taxis and bajjags as we all heard most of the time taxi and bajjag drivers
used to steal and abuse passengers.
 Fragmented and increasing transport price:- in the city there are a lot of
taxis and bajjags but, they are not loyal to the rules and regulations of
transport beuro because of that the peoples are suffering with the transport
price inflation.
 24/7 not accessibility of transport:- in the town there is not adequate
transport service 24/7 mainly in night times as a result to this when peoples
catch an emergency cases they got problems.

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 5.1 Marketing strategies

Here the company take the above opportunities in to consideration and prepare different
strategies to boost the revenue and the growth of the company. Due to newness of the
service to the city the company deployed two distinct marketing efforts to raise awareness
and to generate new customers these are:-

 Promotions:- this will focus on press release and advertising using

various methods including different mass medias regional Tv, short wave
Fm radios, different billboards and brushers.
 Incentives:- this will be implemented to taxi, bajjags and code 3 private
cars in order to work with them in consistent modern way.

In relate to this the company will deploy different strategies so as to exist and to defeat
competitors when it is needed and it will be determined by research and study.

6. Company management structure

The company management philosophy is based on the responsibility and mutual respect.
Our tracking company maintains an environment that stimulates productivity and
emphasized respect for customers and fellow employees.

The company structure is linear, which lends the staff responsibilities and decision making
power.

The management team of the company are well experienced and the general manager Ato
Fitsum Assefa have B.SC in Information technology and more than 14 years business
experience and the deputy manager is Tulu Ketema and have B.A degree in accounting and
finance and more than 10 years business experience.

The implementation of this company creates a job opportunity for 29 skilled and semi-
skilled peoples and their departments

 2 peoples internal audit with 8,000ETB each assumptions

 3 peoples registrar with 6,000ETB
 3 peoples logistics with 5,000ETB
 2 peoples human resource with 10,000ETB
 3 peoples finance dept. with 10,000ETB
 2 peoples information technology with 10,000ETB
 10 peoples registrar with 4,000ETB
 2 messengers with 2,500 ETB

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  2 drivers with 3,500ETB

Totally there will be an expected amount of 171,000ETB per month.

Here below the structure of the company

G.Manager

Internal audit
Deputy Manager

It department Finance Human Registrar

department resource

Call center Logistics

7. Financial structure
The finance structure briefly explains that, the sources of the finance and the distribution
among the beneficiary groups. In such business there are many beneficiaries groups and
they share some of the income based on their agreement

7.1 Sources of finance and distributions

The financial resource is a prime resource for undertaking any activities. The source of the
capital needed for the project establishment is collected from all shareholders of the plc
whereas in day to day activity of the company the finance will be earned from phone call
payment and from percentage commission of transport service providers.

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 7.2 Expected expenses of the business
The operation of this business has many expected expenses these are classified in to two
they are operational expenses and fixed expenses

 Fixed expenses such as mobile application software development and

call center software development with accessories costs 780,000
(seven hundred eighty thousand ETB).
 Operational expenses such as two site office rent expected to be
50,000ETB, employees salary expected will be 171,000ETB, license
approval expected to be 25,000ETB, server rental per month will be
1,000ETB and yearly Tele communication payment is expected to be in
20,000ETB. Therefore totally there is around 155,000ETB.

7.3 Projected one year income/loss statement

In the implementation of this business around 100 code 3 private vehicles, 230 lada taxis
and 5,000 bajajes will be expected to be part of the business as a result to this the business
reputation expected to be high due to this all partners of the business will be benefited.

Assumptions:- if from these partners 50% of them used to work per day with only 2
reputations 2665 taxis & bajajes per minute 3 birr and if each call takes 2 minute

2,665*3 = 7,995 7,995*2 = 15,990 ETB per day only with 50% capacity

3,731*3 = 11,193 11,193*2 = 22,386 ETB per day only with 70% capacity

5,330*3 = 15,990 15,990*2 = 31,980 ETB per day full capacity this all are only
with twice reputation only

If there are around 10 reputations the revenue will be 79,950ETB with 50%, 111,930ETB
with 70% and 159,900 with full capacity per day.

And monthly 159,900*30 = 4,797,000

Per year 4,797,000*12 = 57,564,000 with full capacity

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 Expected income/loss for one physical year

Sales

Revenue from phone call 57,564,000

Expenses

Office rent 600,000

Salary & wages 2,052,000

Server rental 1000$/month 420,000

License approval 25,000

Software development with accessories 780,000

Yearly telecommunication payment 25,000

Telecommunication 30% share 17,269,200

Revenue after expenses 36,392,800

Tax rate 12,737,480

Net income 23,655,320

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 8. Conclusion
As one can understand from the project proposal, the project is accurate, fully assessed and
supplemented by the relevant experts who have experience in the field.

Therefore, taking in to consideration the projects preparation, the project promoter’s

credibility and good reputation in the business world, plus a growing benefit of
Telecommunication Corporation the promoter kindly ask you to give him a four digit short
call number.