Group Assessment Coversheet
To be attached to the front of the assessment.
Campus:
___________________________________________
Faculty:
___________________Pretoria Campus
_________BCom Law ______________________________________________________
Module Code:
__________________________________________________________
Group:
_____COBMA2-11
_1 ______________________________________________________________
Lecturer’s Name: _______Mrs. Faith Kasiyamhuru-Daniels
________________________________________________________
Indicate
Plagiarism report attached
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No
Declaration:
I declare that this assessment is my own original work except for source material explicitly
acknowledged. I also declare that this assessment or any other of my original work related to it has
not been previously, or is not being simultaneously, submitted for this or any other course. I also
acknowledge that I am aware of the Institution’s policy and regulations on honesty in academic work
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Eduvos (Pty) Ltd. (formerly Pearson Institute of Higher Education) is registered with the Department of Higher Education and institution under the Higher
Education Act, 101, of 1997. Registration Certificate number: 2001/HE07/008
Training as a private higher education
% Participated
1
2
3
4
Student Full Name
Mathibela Koma
Student Number
QX4YNK9B
Contact Number
081 532 9859
Signature
MK
Student Full Name
Ryan Ince
Student Number
DTTZ81ZZ2
Contact Number
062 862 3110
Signature
RI
Student Full Name
Lwazi Gumbi
Student Number
PT.2022.V6J1Z8
Contact Number
082 334 9969
Signature
LG
Student Full Name
Student Number
Contact Number
Signature
Lecturer’s Comments:
Marks Awarded:
Signature
Group Assignment Coversheet 2021 | V1.1
%
Date
Page 2 of 2
Introduction
The world is full of young, aspiring entrepreneurs who are filled with a loads of
business ideas, concepts that need to be unlocked the only problem is that it is not
enough to have a good business idea and sit on it. A business idea is wonderful
when one works on it and ensures it comes into existent and a physical thing.
Therefore, as a group of those young entrepreneurs we decided that it will be best
for us to start a company that is in demand and we believe will be successful.
LMR livestock trading is a registered cruelty free livestock farming business that
breeds livestock and supplies meat in the African-continent. It ensures that it delivers
quality products and service for its customers.
Question 1
Mission and Vision statement


Our Vision as a company is to become one of Africa’s leading suppliers of
free-range and cruelty-free animal breeds and organic meat.
Farm Fresh is a registered and certified free-range and cruelty-free farm
business, that we have positioned and committed to breed animals and
supply meat, throughout the African continent, while striving to provide our
customers with the utmost customer service.
Question 1.2
Feasibility Study
Introduction
A. LMR Livestock Trading.
Mathibela, Ryan, Lwazi
B. LMR Livestock Trading is a company that supplies quality, organic, free
range, robust livestock meat to restaurants, Butcheries, any customers
looking to buy good meat.
Section 1: Product/service Feasibility
1. Product/service desirability
2. Product/service demand
New Business Concept
LMR Livestock Trading.
Product
LMR Livestock Trading will supply quality, organic, free range pristine meat to
Restaurants, Butcheries and to any customers looking to buy good meat. We supply
any kind of meat from chicken, cow to lamb to quail. The meat that is supplied is
from our livestock that we farm in the flourishing midland farms of Pietermaritzburg,
KwaZulu-Natal. Our farms are managed by the very founders of the LMR Livestock
Trading.
Target Market
LMR Livestock Trading plans to supply its meat to all South African Butcheries as
well as restaurants that specialise in Meat. We will deliver the Meat to the customers
that contact us via truck delivery.
Why LMR Livestock Trading
The Meat Industry is a big industry in South Africa. It is constantly in demand
because of the demand of Meat in food sectors and fast-food chains, hotels,
Butcheries etc therefore LMR Livestock Trading company offers exactly what the
industry needs good quality fresh meat that is locally source without having to import
any meat from other countries in that way it grows the economy.
Special Feature
The way in which we approach our livestock farming matters, we Care about the
welfare of our animals and how they are. We also care about the conditions of the
animals. We believe that the way in which we handle our livestock farming affects
the quality of our Meat at the end of the day.
We make sure that our animals are not force-fed, we also ensure that we don’t give
our livestock any form of steroids that will over stimulate them or cause them to grow
before time. We believe that it’s important that our livestock stays around a free
space, that they are not subject to cruelty pain or injury and diseases and that they
have access to clean fresh water and food at all times in that way we ensure that the
standard our meat will come out will be perfect.
Team of Managers
LMR Livestock Trading is managed by its cofounders Mologadi, Ryan and Lwazi.
Feedback from the Concept Statement
Strengths of the product or service:
The business in demand a lot of upcoming restaurants and stores are looking for a
supply good meat places and meat is a big thing in South Africa
The issue of being conscious about the welfare of livestock is a very excellent
because a lot of people these days don’t take the time to find out if their meat that
there eating was well prepared.
The Fact that it is locally sourced is amazing because there has never been a time
where we need more companies that are local than ever before considering that it
also contributes to the growth of the country’s economy.
Suggestions for strengthening the concept:
A lot of people suggested that we should venture into also other forms of farming so
that we not only supply Meat we could also be a food supplier to restaurants and
shops in South Africa that way it grows our business bigger than it is.
Suggestions for strengthening the concept:
Out of 15 people that we showed our concept statement 11 believe that the business
is feasible and 4 out of 15 people do not think this concept is feasible therefore since
the numbers of feasibility are high it means we can carry on with the business
concept of LMR Livestock Trading.
Other comments and suggestions:
No other comments were raised.
Conclusion
A meat company in South Africa is desirable everyone wants meat more especially
restaurant, fast food supply chains and also shops big shops.
The demand of meat in South Africa is high, the food sector is in need of local
livestock meat taking into consideration the issue of expensive meat imports it would
be a good idea to start a meat company locally produced that can help the economy.
LMR Livestock Trading is a feasible product/service.
Section 2: Industry/Market Feasibility
1.Indusry attractiveness
2. Target market attractiveness
3.Timeliness of entry into the target market
Industry Attractiveness Assessment (Mark X)
1. Amount of
competitors
Low potential
Moderate
Potential
High Potential
Many
Few
None X
2. How old the
industry
Old X
Middle-aged
Youth
3. Rate at which
industry
grows
4. Standard net
income for
firms’
industry.
5. Extent at
which
industry is
concentration
6. Stage of
industry
Little
Average X
Strong
Low
Medium X
High
Not concentrated
Moderately X
Highly concentrated
Decline
Growth phase X
Birth phase
7. Significance
of industry’s
products and
services to
customers
8. Level to
which
business and
environmental
trends are
moving in
favour of the
industry
9. Amount of
exciting new
product and
services
emerging
from industry.
10. Long term
expectation
Unsure
Could do with
Necessity X
Low
Moderately X
High
Low
Medium
High X
Weak
Neutral
Strong X
Target Market Attractiveness (Mark X)
Low potential
1. Amount of
competitors in
target market
2. Rate of growth
of firms in the
target market
3. Standard net
income for
firms in the
target market
High potential
Many X
Moderate
potential
Moderate
Small to none
Steady X
Fast
Low
Medium
High X
None
4. Ways of
making
revenue in the
industry
5. Capacity to
create “barriers
to entry” for
potential
competitors
6. Extent to which
customers feel
satisfied
7. Possibility to
utilize low-cost
guerrilla or
buzz market
mechanism to
promote the
firm’s product
or service
8. Hype
surrounding
new
product/service
offerings in the
target market
Unopen
Moderately
open X
Open
Unable to make Unable or
cannot make
Can make X
Satisfied X
Unsure
Unsatisfied
Low
Moderate X
High
Low
Moderate
High X
Market Timelines Assessment tool (Mark X)
Low potential
1. Buying state
of mind of
customers
2. Strength of
the market
Customers are
not in a buying
mood
Steady to losing
Momentum
3. Necessity for Small
a new firm in
the market
4. Level at which Small
business and
environmental
trends are
moving in
Moderate
potential
Customers are
Moderately in a
buying mood
Gradually
gaining
momentum X
Moderate X
High potential
Moderate
Big X
Customers are
in a high buying
mood X
Quickly gaining
momentum
Big
favour of the
target market
5. Recent or
planned entry
of large firms
to the market.
Large firms
coming in the
market
Rumours that
large firms may
be coming in the
market X
No larger firms
entered the
market or
rumoured to be
entering the
market.
Conclusion
A. Industry Attractiveness
B.
C.
D.
E.
Target market Attractiveness
Market timeliness
Industry/market feasibility
Suggestions for bettering Industry/market feasibility
Section 3: Organizational Feasibility
1. Management Skilfulness
2. Resource Adequacy
Management Skilfulness (Mark X)
Low potential
1. Drive for the
Small
business idea
2. Relevant
None
industry
experience
3. Previous
None
Entrepreneurial
experience
4. Profundity of
Weak
professional
and social
networks
5. Creativity
Low
among
management
team members
Moderate
potential
Moderate
High potential
Moderate X
Extensive
Moderate
Extensive X
Moderate
Strong X
Moderate
High X
Big X
6. Know-how and None
insight on cash
flow
management
7. College
No College
graduate
experience
Moderate
High X
Moderate
College
experience
High college
Experience.
Graduated X
Resource Adequacy
Description of the Rating system of the table
1=Available
2=probable it will be there and within the budget
3=improbable to be in the business difficult to access
4=Unavailable
5= Irrelevant for the business
Rating Scale
Resource Sufficiency
1. 2. 3. 4. 5.
Farming plot (livestock farming)
1. 2. 3. 4. 5.
1. 2. 3. 4. 5.
Manufacturing place, Meat packing place, Abattoir, the
place where they send the meat to various locations
(delivery station)
Contract manufacturers or outcome providers
1. 2. 3. 4. 5.
Key Management employees (now and future)
1. 2. 3. 4. 5.
Key support staff
1. 2. 3. 4. 5.
Key equipment for operations (feeding the livestock,
Grain seed Handling Equipment, Agricultural computers,
dipping tank, delivery vehicles)
Ability to obtain intellectual property protection on key
sectors of the business
Support of local and state government if applicable for
business launch.
Ability to form favourable business collaborations
1. 2. 3. 4. 5.
1. 2. 3. 4. 5.
1. 2. 3. 4. 5.
Conclusion
1. Management skilfulness
2. Resource adequacy
3. Organizational feasibility
Not feasible
unsure
Feasible X
4. Suggestions for improving organizational feasibility
Section 3: Financial Feasibility
1. Total start-up cash required
2. Financial execution of similar businesses
3. Overall financial attractiveness
Total start-up cash required (for first sale)
Capital investments
Farm Plot (property)
furniture and fixtures
Agricultural computer equipment
Other equipment
Vehicles (trucks, vans, tractors)
Amount R
R 7 000 000
R1 000 000
R 5 000 000
R 10 000
R1 000 000
Operation Expenses
Legal, accounting, and professional
services
Advertising and promotions
Deposits for utilities
Licenses and permits
Rental payments
Salary and wages
Equipment
Starting inventory
Capital
Amount
R 45 000
Total Start up Cash Needed=
R 9 128 000
R10 000
R20 000
R5000
R1000
R30 000
R 10 000
R 7000
R 9 000 000
Comparison of the financial Performance of proposed venture to similar Firms
Assessment Tool
Estimate of Proposed venture’s
Explanation of How the estimate was
Annual Sales- Year 1
Computed
Estimate of year 1 Sales
Summary: How suggested annual
sales on average compares to similar
firms (mark x on one)
Below Average Average X
Above average
Estimate of year 2 Sales
Summary: How suggested annual
sales on average compares to similar
firms (mark x on one)
Below Average
average X
Average
Above
Net income
Estimate of Proposed venture’s
Explanation of How the estimate was
Annual Sales- Year 1
made
Estimate of year 1 net income
Summary: How suggested annual
sales on average compares to similar
firms (mark x on one)
Below standard standard X
Above standard
Estimate of year 2 income
Summary: How suggested annual
sales on average compares to similar
firms (mark x on one)
Below standard
standard X
standard
Above
Overall Financial Attractiveness of Proposed Venture Assessment (Mark X)
Low potential
1. Gradual
and fast
growth in
Improbable
Moderate
potential
Moderately
probable
high potential
Probable X
the sales
during the
first one to
three years
in a clearly
defined
target
market.
2. High rate
of
repetitive
incomemeaning
that once
you
receive the
client will
provide
regular
sources of
revenue
3. Capacity to
predict
income
and
expenses
with a
reasonable
degree of
certainty
4.Likelihood that
inner generated
funds will be
available within
two years to
financial growth.
5. Availability of a
way-out
opportunity for
investor if
possible
Low
Moderate X
Strong
Weak
Moderate
Strong X
Unlikely
Moderately likely X
Highly likely
Not likely to be
available
Could be available
Available X
Conclusion
1. Total start-up cash needed
2. Financial performance of similar businesses
3. Financial feasibility (circle the correct response)
Not feasible
unsure
Feasible X
4. Suggestions for improving financial feasibility
Overall feasibility: summary and conclusion (Mark X)
Overall feasibility of the
Business Idea Based on
Each Part
Not feasible
Uncertain
Feasible X
Product/market
Feasibility
Industry/Market
Feasibility
Not feasible
Uncertain
Feasible X
Organizational
Feasibility
Not feasible
Uncertain X
Feasible
Overall Assessment
Not feasible
Uncertain
Feasible X
Suggestions for
improving for feasibility
Conclusion
From the results of our Feasibility Study, it shows that our Business is Feasible
And it is a demand in the market.
Question 1.3
Barringer Business Model
Core Strategy
Mission
Statement
Basis of
differentiation
Core Strategy
Target Market
Product/
Market Scope

Mission Statement
Farm Fresh is a registered and certified free-range and cruelty-free farm business,
that we have positioned and committed to breed animals and supply meat,
throughout the African continent, while striving to provide our customers with the
utmost customer service

Basis of Differentiation
Fresh Farm is a free-range and cruelty-free farm that denotes a method of farming
husbandry, to ensure that we supply higher quality and organic meat and.

Target Market
Primarily, our target market is the end-users/ consumers of free-range animals
breeds and their produce, as well as those will benefit from the value chain of freerange farm business and all that it entails.
In view of the above, our business is positioned to attract customers to our freerange breeds and our organics meat, not only in South Africa, but across Africa.
Our market is focused on:
o
o
o
o

Households and Individuals
Retailers and Resellers
Restaurants
Hotels
Product/Market Scope
Our company aims to product free-range and cruelty-free animal breeds, to be able
to produce and supply healthier, higher, quality and organic meat.
Resources
Core
Competency
Resources
Key Assets

Core Competency
We have outsourced and acquired the latest and innovative free-range farm
hatchery, tools and equipment, that will assist us in breeding animals, and producing
and processing meat in commercial quantities with minimum stress on our business
process.
Aside from our sustained and existing relationships and connections within the
supply chains and our equipment, we can confidently boost that we have employed
the best and most experienced people within our industry of free-range and crueltyfree farming.
Key Assets
The success of our business relies primarily on our faculty of our farm. We need to
ensure that our farm is well manged and that all the equipment used for the
operation of our business are well maintained and services on a regular basis. We
also rely on the knowledge and experience of our farm manager; he brings to the
table years of experience working in the agriculture space.
Financials
Revenue
Streams
Financials
Cost
Structure
Funding

Revenue Streams
Farm Fresh is a free-range and cruelty-free animals breeding farm and meat
supplier, for our mains purpose of generating and maximising profit, we have
positioned our business structure in such a way that enables us to explore the
different business opportunities available within our sector, to be able to achieve our
business’s long and short goals and objectives.
Our business generates its income through means of:
o Breeding and raising farm animals on a commercials level – that enable us
to be resellers of livestock.
o Processing and packaging of meat – we cut, package and deliver
processed meat to end-users/ consumers based on the specifications of
the customer.
o Butchery Services.

Cost Structure
To sustain the success and production of our business, we have incurred one-off
costs and monthly recuring costs, that are essentials for our everyday operations.
Our business expenditure includes:
o Registration of our business.
o Obtaining all necessary certifications (BEE, safety compliance, TAX,
environmental assessment, and farm association certificate, food& health
compliance)
o Acquiring the land.
o Preparing the landing (Security fencing, soil fertilization, plumping and
electricity)
o Purchasing of working tools, equipment, and hatchery.
o Purchasing of our first group of livestock.
o Business consultation and legal services.
o Branding and packaging medical prints.

Funding
Farm fresh is the brainchild of three (3) black youth entrepreneurs that have the
passion for the agriculture industries.
We approached the NYDA (National Youth Development Agency) for assistance
during our elementary days. We were able to receive the following from the NYDA
o Financial grant that we used towards purchasing of our butchery
machineries.
o Fully paid mentorship and skill development program.
We further approached the South African Department of Agriculture, from them we
received funding for landing preparation that include assistance to clean the land and
we also received subsidy for the animal feeding equipment.
Operations
Product
Production
Operations
Channels
Key
Partners

Product Production
We pride ourselves in breeding free-range and cruelty-range animals and supplying
organic meat and believe that only we have the expertise and experience to do so. In
view of this, we breed our own animals on our farm and all processing and
packaging takes place on our premises, under the administration and supervision of
our well trained and experienced staff.

Channels
Our livestock are sold directly at our farm, the customer has the privilege of coming
to our farm and connect directly with our sales force, to select and weigh the
animal(s) of their choice.
Customers can also make use of website to make use of our online ordering portal
for our processed products/meat.

Key partners
We have partnered with local suppliers to ensure both the wellbeing and growth of
our business and the community through empowering youth owned initiatives and
programmes.
o Suppliers: we have contracted Muzi K Organics to supply us with the
feedings for our livestock they supply us on a weekly basis.
Service: We contracted Bauba Transportation, to transport and deliver our orders to
our clients/customers
Question 1.4
Mario’s Meat Wholesalers is a company that performs in the same industry as LMR
Livestock Trading. Mario’s Meat Wholesalers supply poultry, fish as well as mutton,
pork, and beef. Although we perform in the same industry Mario is different from us
as they supply poultry and fish whereas we specialize in beef, mutton, and pork. In
our company, we breed our own animals and refrain from using pesticides and forcegrown supplements whereas Mario imports his meat products from countries such as
Brazil, China, and USA.
Rivalry Amoung
Existing
Competitors
•There are a number of businesses which operate in
the agriculture industry such as Marios Meat
Wholesalers however, we are unique as we specialise
in meat products such as beef and pork whereas
Mario is a general meat supplier.
• We switch costs by breeding our own animals as this is a cheaper
option for us whereas Mario imports there meat to supply.
Threat Of New
Entrants
•Our capital requiremnts include our live stock
as well as the equipment required to
generate the final product. The equipment
includes cold rooms, electronic slicers as well
as storage for the meat.
Bargaining
Power Of
Buyers
•Since our products are free range there is a high demand for
it as consumers tend to support local farmers that do not
use pesticeds as this has a negative effect on peoples health.
•Our business supplies customers with a full breakdown of
what is in our meat so they are fully aware of what they will
be purchasing . We cut our costs by breeding our own
livestock instead of importing
Threat Of
Substitute
Products
•Our products are set to be better than our
competitors as products distributed from
LMR Livestock trading makes use of proper
animal feed which results in free range
meat products.
Bargaining
Power Of
Suppliers
•LMR Livestock Trading is unique as we do not use any
pesticeds or synthetic products on our animals
therefore making our products free range. Unlike
other meat suppliers that force feed their livestock
Question 1.5
Since we deal with livestock, we, therefore, operate in the agricultural
sector/industry. The livestock which we breed on our premises will be used to supply
meat the final product to our customers.
Question 1.6
LMR Livestock Trading has a balance sheet and we need to differentiate between
the assets and the liabilities of our business. In order for us to have a list of our
assets we need to understand what assets is.
Assets are things that the in this instance our business owns that have value. These
are the products that are used to produce the goods they vend
These things are prepaid expenses, breeding livestock, machinery and equipment
and the farm plot and inventories used to feed the livestock for the meat.
Within the assets we are able to categorise our assets into three: current assets and
intermediate assets. Current Assets is money or things that be easily converted into
cash in a year or less, this includes money savings and livestock
Intermediate Assets have a lifespan of one to ten years, this is things like machinery,
agricultural computers
Long term assets are fixed assets are fixed, assets are typically are more than ten
years and that is things like farm plots and the factories.
The liabilities are the things that our business owes to others such as business
lenders, vendors and private people. The list of our liabilities as a business include
pending financial requirements such as feed and fuel. The list also includes bank
loans or breeding livestock, farm plot advancement.
The current liabilities are requirements due and needed to be paid within the next 12
months such as credit card balances.
Intermediate Liabilities are as follows: equipment loans or livestock markets.
Question 1.7
Farm Manager
 the arranging, administration and planning all cultivate activities over the differ
ent areas on sake of the organization
 Supervise other segment manager Ensure
compliance amid venture executions Providing counsel on
the administration of the farm exercises over all section
 Responsible for carrying out hazard assessment
 Using IT frameworks and program to keep track of individuals and advance of
the area and development of the farm
 Responsible for directing the bookkeeping, costing and deal of chickens in our
farms
 Represent the organization’s intrigued at different stakeholders’ meetings
 Ensures that cultivating objectives wanted result are accomplished, the
foremost proficient assets (labour, hardware, apparatuses and chemicals et
al) are utilized and diverse interface included are satisfied.
 Responsible for planning monetary reports, budgets, and money
related explanations for the organization
Sales and Marketing Manager
 Accomplishes outside investigate and arrange all the inner sources
of data to hold the organizations’ best clients and draw in modern ones







Model statistic data and analyse the volumes of valuebased information produced by customer
Identifies advancement openings; takes after up on advancement leads and
contacts; takes part within the organizing and financing of the business
Writing winning proposition reports, arrange expenses and rates in line with
organizations’ policy.
Responsible for dealing
with commerce investigate, advertise overviews and possibility thinks
about for clients.
Responsible for overseeing execution, advocate for the customer’s needs,
and communicate with clients
Develop, execute and assess modern plans for growing increment sales
Create modern markets cum businesses for the organization Empower
and persuades the deals group to meet and outperform concurred targets.
Farm Field Worker








Field Staff Responsible for every day taking care of the animals
as educating by the supervisor
Responsible for cleaning the free-range cultivate environment and equipment
Change the water for the animals as educating by the administrator on
a customary basis
Handles cultivate actualizes and machines as educating by
the area supervisor / supervisor
Assist in dealing with the animal amid sales
Carries out assignment in line with the expressed work description
Assist in transport working devices and gear from the free-range
chicken cultivating area and back to the assigned storeroom
Handles any other obligations as doled out by the line chief.
b) Gaps to be filled by future interns and future employees
Human Resources and Admin Manager



Dependable for managing the smooth running of HR
and authoritative assignments for the organization
Updates work information by taking
part in instructive openings; perusing proficient distributions; keeping
up individual systems; taking an interest in proficient organizations.
Enhances office and
organization notoriety by tolerating proprietorship for finishing unused and div
erse demands; investigating openings to include esteem to work achievement
s
Bookkeeper / Cashier:
Responsible for planning budgetary reports, budgets, and budgetary articulations for
the organization
Provides administrations with money related investigations, improvement budgets,
and bookkeeping reports; analyses budgetary achievability for the foremost complex
proposed ventures;
conducts advertise investigate to figure patterns and commerce conditions.
Responsible for money related estimating and dangers analysis.
Performs cash administration, common record bookkeeping,
and monetary detailing for one or more properties.
Accountable for creating and overseeing monetary frameworks and approaches
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