BUSINESS DEVELOPMENT PLAN FOR THE ZIMBABWE RED CROSS SOCIETY
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- Phillip Melton
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1 BUSINESS DEVELOPMENT PLAN FOR THE ZIMBABWE RED CROSS SOCIETY BACKGROUND The Zimbabwe Red Cross has identified its priority areas resource mobilisation. This will help improve the financial base of the National Society. These priority areas are detailed below: A review of the National Society s business portfolio including income potential and management structures. There is no Strategic Business Unit management policy in place at the moment. This work should culminate in the development of that policy which will lay out the appropriate management structures, roles and responsibilities and regulations on the utilization of the income realised and capitalization and recapitalisation procedures. Development of agribusiness ventures at the land in Chegutu, Chinhoyi, Banket and Bindura Improvement of the Piggery project in Banket Turnaround of the Sewing Project, Nursing Agency and Training Center Business Units. Review of the operations of the kiosks and bakery Review the income potential of leased properties {Five avenue stand and Red Cross House} The potential to raise substantial income from these strategic business units can only be realised after careful reconsiderations and replanning. The agricultural land in Chegutu and Bindura is not yet being fully utilized. The Piggery project in Banket is not operating at full potential. The operation of the kiosks is not at full potential. The National realises the need to improve its self generated resources position to sustain core costs and even short term projects in areas where the Red Cross is present but there is no funded project being implemented. PROCESS AGRIBUSINESS The land in Chegutu and Bindura needs to be fully utilised to raise income for the National Society. The two pieces of land are located in agricultural prime areas in Zimbabwe and have a high potential of productivity if properly utilised. The previous businesses have been operated without feasibility and business plans which may have contributed to their current minimum performance. We wish to commission a consultancy to do a feasibility study which includes a comprehensive cropping and management strategy and a comprehensive agri-business plan with clear cash flow projections and capitalization requirements. The terms of reference have been developed and are attached to this document
2 BANKET PIGGERY PROJECT This project is in a prime area where land is also available to grow supplementary stock feed. The pig industry is a flourishing industry in Zimbabwe and pork products are high value products. However the project does not have a business plan and cash flow projections. Animal husbandry expertise is also not available within the current project management structure. The National Society would like to engage a consultant with animal husbandry business expertise to do a feasibility study and a comprehensive business plan. SEWING PROJECT, NURSING AGENCY, TRAINING CENTER These business units are operating without business plans or cash flow projections. There are no marketing plans or briefs. The National Society would like to commission a consultancy to do a business review and come up with a business plan complete with cash flow projections and operational and management structures. KIOSKS There are kiosks being operated at major hospitals throughout the country. These do not have business operating guidelines for stocking, pricing etc and they have no cash flow projections. As such their potential is not really known and as a result their performance cannot be assessed against that potential. There is a bakery operating in one of the provinces also with no business plan and no clear targets. The National Society would like to commission a consultancy to do a business review and draw a comprehensive business plan complete with cash flow projections and operational and management structures. The sewing project, nursing agency, training center and kiosks will be reviewed in one consultancy. The Piggery project and agri business will be done in one consultancy. Therefore only two consultancies will be commissioned for the above projects. RESOURCE REQUIREMENTS FOR THIS EXERCISE Funds for the consultancies Funds to implement the recommendations of the consultancy Funds for the Strategic Business Units policy development exercise - 2 -
3 CONSULTANCIES 1. AGRIBUSINESS/PIGGERY PROJECT US$ Advertising 200 Consultant /day Documentation 200 Fuel and support costs 500 TOTAL KIOSKS, SEWING PROJECT, NURSING AGENCY AND TRAINING CENTER US$ Advertising 200 Consultant /day Documentation 200 Fuel and support costs 500 TOTAL BUSINESS PORTFOLIO REVIEW US$ Advertising 200 Consultant /day Documentation 200 Fuel and support costs 500 TOTAL SBU POLICY DEVELOPMENT PROCESS US$ Workshop Consultant 5 300/day Documentation 600 TOTAL GRAND TOTAL US$
4 TERMS OF REFERRENCE FOR THE AGRIBUSINESS DEVELOPMENT CONSULTANCY Background The Zimbabwe Red Cross owns land in Chegutu, Chinhoyi, Banket and Bindura. The land in Chegutu is alongside the main road and has underground irrigation pipes covering plus or minus one hectare which is the total cleared portion of this piece of land. The National Society wishes to use this land commercially to generate income on a long term basis. The Piggery project is operating from Banket where there is land for agricultural activities as well. The Piggery project is currently managed by the Provincial Admin and Finance Secretary at the direction of the Provincial Programmes Officer. PURPOSE The purpose of this consultancy is to establish the business potential in these designated projects and recommend a step by step implementation process which includes a readiness assessment and establishment guideline. TOR Draw a business plan complete with o Cropping strategies and cycles o Cash flow projection with and without irrigation o Resource requirements o Skills requirements o Capitalisation and infrastructure needs o Amount of time required to roll out the projects o Market linkages and market analysis o Annual net income projection Make a skills and capacity analysis of the current Zimbabwe Red Cross Structure for the management of these projects Make recommendations on skills and structure required to manage these projects profitably Make recommendations on animal husbandry or cropping projects that may be viable including cash flow projections Present a process report and a report on the above to the Zimbabwe Red Cross Board and Management DELIVERABLES Process report Business plan for o Chegutu land o Chinhoyi land o Banket land o Bindura land Skills analysis and capacity report and the recommended alternatives Report on findings - 4 -
5 TIME FRAME 25 DAYS TERMS OF REFERRENCE FOR THE SBUs i.e. Kiosks, Bakery, Sewing Project, Nursing Agency and Training Centers The Zimbabwe Red Cross has been operating kiosks in hospitals throughout the country. These kiosks are meant to serve the hospital population which includes staff, patients and visitors. Except for one, some of them have once in while been reporting losses. This operation is not standardized throughout the country in terms of planning and operations. These are managed by the Provincial Finance and Administration Secretary at the direction of the Provincial Programmes Officer. In Midlands Province the National Society is operating a bakery in partnership with National Foods Gweru. This bakery is not operating on a business plan hence there are no clear targets, branding or marketing plan. This bakery is managed by the Provincial Finance and Administration Secretary at the direction of the Provincial Programmes Officer. The Sewing Project is operating at the National Training Center in Harare. This project is a small factory producing uniforms for Red Cross Volunteers, Uniforms for the medical professionals, Uniforms for house maids and gardeners, causal clothing and soft furnishings. These products are not branded, there is no business plan, no production plan, no marketing plan and is managed by the Home Based Care and Counseling Officer. The Nursing Agency is operated from Harare. Historically it used to offer a loan cup board of wheel chairs, crutches etc and home nursing services for free. It has evolved to become a commercial operation offering a home nursing and bed side nursing service to those who can afford the service at a fee. The loan cupboard is available for hire. This project is managed by the Home Based Care and Counseling Officer. There is no business plan, no cash flow projections, no branding and no marketing plan. All these projects except for the kiosks and the bakery submit all their income to a central account at Head Office which is managed by the Finance, Admin and Personnel Officer. They then request money for operations and other costs from the same account. PURPOSE This consultancy seeks to define the business potential and draw up comprehensive business plans for all of them clarifying the operational and management structures to improve the viability or realignment of these strategic business units
6 TERMS OF REFERRENCE Review the performance of the Business Units citing clearly the constraints/bottlenecks, any strength and weaknesses in the structures and opportunities missed. Draw comprehensive business plans for o Kiosks o Bakery o Sewing Project o Nursing Agency o Training Centers Assess the structural capacity of the current operations and management structures to run these businesses viably. Define the structural and capacity needs to operate and manage these business units viably Give a projection of the total possible annual net income from each of the Business Units. Assess the stocking and pricing procedures currently in place and make recommendations. Make all assessments and recommendations on a ring fenced basis so that there is individual business potential and planning. Define the levels of financial exposure for the National Society to be running these entities. Present a process report and findings to Zimbabwe Red Cross Board and Management. DELIVERABLES Process Report Findings reports for each business unit Comprehensive business plan for all the business units to include the following o SWOT analysis o Product portfolio/service portfolio analysis o Competitor analysis o Market analysis and marketing plan o Management structure with roles and responsibilities clarified o Operation structure o Readiness analysis and readiness creation requirements TIME FRAME 30 DAYS PLAN OF ACTION ACTIVITY TIMEFRAME Consultancies January February 2005 Resource Mobilisation for the recommendations March
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