BUSINESS PLAN

BY

CORNEL RAGEN

NOVEMBER, 2011

CHAPTER ONE

1.0 THE BUSINESS DESCRIPTION

The following document is a business plan of Naet Inspire Centre. It contains details of

the business owner and how the business will be managed. The business is placed under

personal development in the human resource industry. It is aimed at providing an avenue

for talent search and transforming the mindset of young people both in school and out of

school to enable them live beyond their circumstances. It has a great expectation of

facilitating the emergence of informed and motivated youth across the continent .

The center will be profit making venture that will seek to impart knowledge to clients at

the same time seeking to achieve and maintain its objectives. The centre is the brain child

of Mr Chepkurir Kipkemoi a holder of a Master Degree in Business Administration-

Human resource specialization, a Bachelors Degree in Education Counseling and

currently pursuing a professional Higher Diploma in Human Resource management.

“Naet” is a Kalenjin word that means “knowledge”. Knowledge is defined by the Oxford

English Dictionary as expertise, and skills acquired by a person through experience or

education; the theoretical or practical understanding of a subject; what is known in a

particular field or in total; facts and information; or awareness or familiarity gained by

experience of a fact or situation. This is what will form the core business of Naet Inspire

Centre.

The proprietor intents to make an entry into the market through collaboration with

training institution with Secondary Schools being source of market by targeting the

school leavers. Growth will be realized through participation on education forums in the

area, regionally and even nationally as this will enable the institution to acquire publicity.

Naet will develop interesting stories to meet teen client’s demands; later on radio talks

that are marketable and are up to date with the current trends in the market will be

developed. Market growth Strategies will be developed to help in the expansion and

development of the centre. Naet’s main goal will be to increase the transition rate in

schools and colleges by providing motivational talks, mentoring teens, listening to their

challenges, initiating volunteer programs and building personal relationship with teens.

2

1.1 The Sponsor

1.1.1 Owner Background

The proprietor is Mr. Musa K. Chepkurui. He is 37 years old and lives at marakwet

district. Currently he works as an education and training officer with Kenya union of

savings and credit co-operatives(kuscco).

Mr Chepkurui who is the owner and director of Naet inspire has a Master of Business

Administration(MBA) Human resource management option and B.ED Counseling both

from Kenya Methodist university. The proprietor acquired the above between the years

2006 -2010. Prior to this the owner had trained as a mechanical engineer to higher

diploma level with Kenya industrial training institute and Eldoret polytechnic

respectively.

He was motivated to go into motivational consultancy after many complaints from the

youth about economic empowerment and career advancement. He started gathering

information and studied the prevailing factors of training opportunities within the district

while serving as personal assistant to the area member of parliament. Besides this the

proprietor conducted several youth meetings and forums while serving both as a personal

assistant and an instructor with kapenguria home craft.

The proprietor will use his knowledge of human relations and counseling to enhance his

customer care management

The center will engage highly trained and experienced motivational speakers and

facilitators who will provide education based on the set programs and a frame work that

will create a high management and quality inspiration that is of value for money.

Experienced personnel will be brought on board to execute the program activities. This

will be an added team to the proprietor as he carries on the administrative duties of the

centre.

3

1.1.2 The Proposed Ownership Structure

Naet Inspire Center will be initially financed through owner’s savings of ksh 500,000 and

Sacco loan of ksh 150,000. This is because sacco offers low interest on loan and the

repayment period can be negotiated depending on the circumstances. Bank loan can also

apply if there is urgent need. Family and friends contributions will be ksh 100,000. This

will be used in the entire business finance plan and budget.

Loan calculation

Principle - 150,000/36 =4,166/= per month

Interest -1500000 x 10% x 1/12 =1,250/=

Monthly remittance to the sacco =4,166/= +1,250 /= =5,416/=

Break down of capital (kshs)

i.) Individual Savings 500, 000/=

ii.) Sacco Loan 150, 000/=

iii.) Family and friends 100, 000/=

Totals 750, 000 /=

Ownership in percentage

Individual Savings 500, 000/= X 100% = 67%

750,000 /=

Sacco Loan 150, 000/= X 100% = 20%

750, 000/=

Family and friends 100, 000/= X 100% = 13%

750,000/=

4

viii) Diagram Projection

Fig 1.1 Source of Capital

Source: Author 2010

5

1.2 THE BUSINESS

1.2.1 Description of the Business

The business name will be Naet Inspire Centre. “Naet” as earlier stated is a Kalenjin

word that means knowledge. Naet Inspire Centre looks at setting up an administrative

center at a rental space that will work out initial arrangements of the plan. The start

period is projected for the year 2012 in January.

The business will be a sole proprietorship at its initial stages in order to facilitate a faster

initiation process. The many advantages are; less legal requirements making it easy to set

up, quick and easy decision making, high contact hours with customers and employees

make it easy to discover customer needs and employee concerns which translate to

client confidence and loyalty. The main activity is to create awareness through training,

career coaching, education and other development programs for alternative livelihoods.

Out of the awareness creation many will gain insight that will enable many people use

their potentials. With this the principal customers will include the secondary school

leavers, residence of kapsowar area, business people and teachers.

1.2.2 Description of the Business Location

Naet inspire office and other support facilities will be on the first floor of marakwet

teachers sacco plaza in kapsowar town a prime section of a fast growing rural urban

center with schools, shopping centers, entertainment spots etc. The centre location is

designed for high volume of business the whole year round, with revenues and profits to

match.

The prestigious modern building is a selling point in itself. Teachers often run many of

their activities within the premises and they take progressive information and report to

their schools and villages

The facility is served with a reliable public transport and an ample parking with

maximum security throughout. The choice of the location is informed by cheap cost of

operations given that rent, clean piped water, electricity and other overheads are

relatively affordable.

6

Fig 1.2 Map Location of the Proposed Business

Source: Author 2010

Kapsowar Boys Secondary School

Marakwet County counsil Hall

Moi Girls Kapsowar

District Education Officers Office

District Commissioners Office

From Eldoret

7

Marakwet Teachers Sacco Plaza

1.2.3 Justification for the Need of Business Venture

Naet inspire shall be located at a place where a centre of its kind does not exist. A gap

exists in the sense that there are many high schools around the place and the population is

large. School leavers chart their own way through trial and error while some who travel

to other downs like Eldoret 180 km away from kapsowar incur a lot of costs.

This part of kapsowar is an upcoming place in population and business activities hence

demand for motivation and inspiration arise every other day. This pitch the centre at a

win situation as it stands to contribute in the realization of an enhanced human resource.

The government policy direction is very positive and encouraging for Naet. According to

vision 2030 the government blue print document to guide the country till 2030 education

is one of the 8 social pillars for prosperous Kenya. The vision 2030 lists five major

challenges in education that Naet inspire sees as an opportunity. Naet will respond to

some of these challenges by improving the transition rates from secondary to tertiary

levels. The most daunting challenge among these is to create a cohesive society imbued

with culture of hard work, efficiency and one that values transparency and accountability

respecting the rule of law and great concern with the environment.

Using mentorship, motivational speaking and edutainment, Naet is positioning itself to

begin this task of improving the transition rates in high school and building the values of

future Kenya by helping teens acquire modern skills for global competition.

The contribution of this centre to the local community shall be that those who are unable

to travel to other towns for such services shall be served. Employment opportunities

especially for office administrators and logistic officer who maintains the facility will be

of great economic empowerment.

8

1.3 THE INDUSTRY

1.3.1 The Size of the Industry

The business is placed under the education industry where it seeks to impart knowledge

and skills development in the said area.

It deals with consultancy, inspiration and motivation whereby it targets schools, school

leavers, collage students and youth’s in general

The business major area of focus is in human resource practices which is very wide, and

inspiration and motivation are some of the areas of development.

1.3.2 Key Characteristics of the Industry

The proposed venture is not well developed in the area as most educational venture are

primary schools and secondary schools with a few collages. This makes it justifiable for

this type of business.

The proposed business will be in the motivational speaking in human resource. It will be

labor intensive and utilizing sophisticated technology such as overhead projectors and

computers. The average number of number of employees will be twenty personnel.

Table 1.1

Details Small Medium Large

Assets (kshs) 1- 100,000 100,0001-350,000 350,001 plus

Annual Sales Volume

50, 000 – 100, 000 100,001-350, 000 350, 001 plus

Number of Employees

1-5 6-20 20 plus

Table 1:1 Size of Firm in the Industry

Source Author 2012

The business is considered to be in the medium size category. This is defined in today’s

thresholds in terms of employment, turnover and assets. It will also incorporate a

9

reasonable amount of flexibility around year-to-year changes hence the business quality’s

as medium size.

Basically the business will require labtop.projector and flipchart.

There is no immediate competition in the vicinity save for the ones at Eldoret town

180km away. However guiding and counseling departments in schools, churches, and

groups that give mentorship services in schools can be considered competitors.

The business will experience some fluctuations in its activities especially on the early

part of the year. Most customers commit most of their resources to paying school fees

and farm inputs since the business area is an agricultural zone.

Among other seasonal factors are political dynamics, hypertarbulent socio-economic

activities, legislation and technological shifts which may negatively affect the market

even though they are the source of the major issues that the centre is poised to handle.

1.3.3 The Industry Trends and Prospects

This is an industry with unlimited potential in both personal and corporate development.

Motivational speaking has come about because of the realization that people have great

potential beyond their areas of training and specialization and more so the shrinking wide

color market

The introduction of the free 8.4.4 system of education and the 2003 policy of free

primary education by the Narc Government, education sector has grown with increased

number of education centers and joint collaborations among learning institutions

becoming the norm. The numbers of graduates from such institutions have been tripling

every year. And they are released to the job market with few skills to allow them navigate

through the shrinked market. In the other hand the transition rates from one level of

education to the other is also affected because of the limitation of infrastructure. Such

mismatches have left many youths to miss training opportunities hence becoming

pessimistic and hopeless. However people need somebody to motivate them to be

creative to enable them operate above prevailing challenges

10

Growth in the industry is very progressive especially in training institutions and business

organizations. Motivational books and inspirational literature are in the rise both in the

print and electronic media. Organizations and individuals invest in motivational

workshops unlike in the past. From general observation motivational forums have

become popular in the recent past by attracting a high number of participants.

With the coming of internet technology learning has been made easier since learning can

be done online, there is development of ICT related courses and research work has been

made easier due to availability of online data.

Scholarly articles and journals with varied opinions can be shared widely and very fast

electronically making the industry operations very convenient. Communication and

decision making is very affordable because of the cheep on line internet services safe for

starters.

Competition is not intense as demand is high and the available institutions that offer such

services don’t meet the demand as a lot of school levers are left to seek other alternatives.

1.4 THE PRODUCT.

This is service industry which deals with personal development. The services are

intangible, Howe ever the results have far reaching impact on the production and general

life, of students, school leavers and youth in the business community.

The quality of the product is determined by the person delivering the message. This mans

it is affected by the persons communication skills, presentation skills, scope of

knowledge and experience.

The business will be dealing with inspirational and motivational services which

empowers the youth in many areas of life which include talent search, career coaching

guidance and counseling management programs and other alternatives to livelihoods

Naet Inspire Centre will seek to provide quality inspirational and educational materials

that are comprehensive and conclusive.

The services offered in the centre will reduce cases of school dropouts and school leavers

will be equipped with skills that will make them make well informed decisions about

11

their lives. As a result an empowered society will be realized, this is an enabling

environment for all to invest.

Naet will be using a unique model organized into three impact groups. These impact

groups are:

Teen leaders. These are the people who will be involved in managing and leading in

Naet .

Teen angles. These are the people who provide wings to the Naet business or cause

Teen mentors .These are the people who provide shoulders and reach out to teens.

This model will give the business an advantage over other competitors.

1.5 ENTRY AND GROWTH STRATEGY

1.5.1 The entry Strategy

Naet Inspire Centre will use a strategy of total quality in services. The institution’s

promise is in its location, the services offered as well the people attraction and the

atmosphere to be created.

To capture a high market share Naet will embark on use of business cards which contain

necessary details of the centre. Also it will adopt a policy of affordable fee and

installments as this will allow customers draw services at their ability and become loyal

to Naet

The centre will have no major competitor based on its location; however marketing

strategies will be developed to pursue customers. The centre will develop career

counseling programmes with secondary institutions in the area and in the region to help

tap the post secondary levers. These will serve as promotional programs.

Launch marketing will be carried out to promote awareness, build immediate traffic and

establish a brand image via several methods: which include local print broadcast media,

free counseling day and desirable centre ambiance.

12

1.5.2 The Growth Strategy

The location is a prototype of future sites. The set up is one that will offer key element in

a successful operation.

Since the business is in its startup stage the owner holds the believe that the centre will be

successful because human beings from widespread regions regardless of racial divisions

and social caliber direly and constantly need useful life skills to win a way through in

order to face and subdue existing and emerging obstacles evident in the world of today.

This explains why the services are most likely to attract the attention of targeted

customers

As part of future plans the proprietor intents to involve the community in most of its

programs making it an integral part of the local and world community. This will generate

goodwill; create opportunities to forge important contacts with key people.

In order to attend to wider scope of clientele the proprietor will set up a branch office

strategically at Eldoret town as part of its expansion strategy.

At the long term the centre will acquire its own plot and build own offices and conference

hall for holding seminars so that it cut down expenditure on rent.

The centre will invest on research and development to enhance programs with market

demand and tailor make courses for businesses and corporate institutions regionally.

1.6 THE BUSINESS GOALS

1.6.1 Short term goals

To satisfy the unsatisfied inspirational demands by the first year

To increase the service range to cover a wider market segment by 2013

Create employment by 2014

To engage high skilled motivational speakers.

Profit maximization by 2013

13

1.6.2 Long term goals

To be the market leader in the region by the year 2015.

To open branches outside kapsowar in next five years.

To acquire a land and put up the business premise to reduce expenditure on rent

by 2022

To be the best inspirational centre in Kenya and east Africa in the first five years.

Have a well equipped and serviced ICT centre

14

CHAPTER TWO

2.0 THE MARKETING PLAN

The market plan forms the second part of this document. It seeks to address the situation

and plans within the marketing part of Naet inspire center. The market plan discusses the

potential customer perspective, the market size, competition, the pricing strategy, sales

statistics, advertising strategy, distribution assumption and methods of promotion.

2.1 POTENTIAL CUSTOMERS

2.2.1 Description of potential customers

Since the proprietor intents to make an entry into the market through collaboration with

training institution and Secondary Schools being source of market by targeting the school

leavers, the customers are classified as youths and teenagers.

The customers are considered to be at an age that really needs inspiration and motivation

as they seek to make carrier choices in life. The customers fall in the age bracket nineteen

years to thirty years. The customers are considered to be students and will largely depend

on their parents or guardians to contribute for there service acquisition at Naet inspiration

center. Other categories might compose of teachers in the area in need to upgrade there

skills and knowledge and grown ups of diverse background seeking some inspiration be it

in life or in business perspective. The tables 2.1 and 2.2 below show the presentation on a

projected perspective of the customer’s business scene and the current perspective.

Table 2.1: The current business scene

Potential Customers Population Percentage

A.) Technical Institutions

B.) Tertiary colleges

C.) Counseling Centers

D.) Secondary Schools

E.) Primary schools

3

5

1

11

15

9

14

3

31

43

Total 35 100%

Source: Author 2010

15

Figure 2.1 The current business scene

Source: Author 2010

According to the table 2.1 above and figure 2.1 on the current business scene the region

under the proposed business has a total of 35 learning institutions, out of the 35 (43%) the

highest representation is of the primary schools composed of 15 institutions, others are

Secondary Schools 31%, Tertiary colleges 14%, Technical Institutions 9% and

Counseling Centers 3% respectively.

Table 2.2: The projected business scene

Potential Customers Population Percentage

A.) Youths from training institution

B.) Youths from Secondary Schools

C.) Non youth customers

3,000

1,500

500

60

30

10

Total 5,000 100%

Source: Author 2010

16

Figure 2.2: The projected business scene

Source: Author 2010

The table 2.1 above indicates the projected business scene which composes of Youths

from training institution, Youths from Secondary Schools and the Non youth customers.

It is observed that with the high number of school leavers and graduates from collages

and technical institutions the population is out to seek for education /services that are

consistent, affordable and those that are conclusive to much there demand.

Naet inspire center will seek to have its services offered at different schedules to meet the

customers demands. The institution will run classes during the week and over the

weekend where time schedules will be of morning sessions, afternoon, evenings and

those that run through the weekends.

Sessions are proposed to run on quarterly basis that will form up a session of three moths

where a test session will be conducted to gauge the student’s level of learning. The

services will be purchased on 60% payments of the proposed service and the balance paid

installments over the contracted period.

17

2.1.2 The Market Size

The actual school going figure according to the area education district officers as per the

2009 – 2010 figures estimation is of 5000 students at the primary and secondary level.

The proprietor intents to make an entry into the market through collaboration with

training institution with Secondary Schools being source of market by targeting the

school leavers.

The business is placed under the education industry where it seeks to impart knowledge

and skills development in the said area. Within this industry in the stated area there are 35

learning institutions in from primary level to the collage level. Immediate competitors

can be considered to be the technical institutions considered to be taking 50% of the

market share, counseling centers 10% of the market share and the mushrooming tertiary

colleges about 20% of the market share. Below is an illustration of some of the known

and well established competitors.

Table 2.3 Market Classification

NAET Centre Bizna Tumaini Centre

Assets in kshs 100,0001-350,000 500,000 700,000

Sales Volume 100,001-350, 000 400,000 800,000

No of employees 6-20 20 35

Source: Author 2012

The figure represented under Naet centre in the table 2.3 above indicates the projected

amount on assets, sales volume and the expected number of employees.

The size is considered to be favorable considering the services offered by the

competitors. The projected amount to be put in service to this plan will meet the

competitor’s margin considering Naet will deal with consultancy, inspiration and

motivation whereby it targets schools, school leavers, collage students and youth’s.

Considerations are also made to established individuals or grown-ups who might be in

need of such services. Estimation is made that Youths from training institution

18

comprising of 3000 (60%) will need our services, Youths from Secondary Schools 1500

(30%) and Non youth customers 500 (10%) would be in a position to need our services.

To this estimation is made of at least 20% of the current market population.

2.2 THE COMPETITION

2.2.1 Potential Competitors

The competitors can be seen to come from the side of Technical Institutions, Tertiary

colleges and Counseling Centers in the area who might up grade there services to

accommodate what is to be offered by Naet centre. In the area of operation Bizna and

Tumaini Centre can be named to be the immediate competitors.

Figure 2.3 Map Location of the Potential Competitors

Source Author 2010

Kapsowar Boys Secondary School

Marakwet County council Hall

Moi Girls Kapsowar

District Education Officers Office

District Commissioners Office

From Eldoret

Bizna Institute

Tumaini centre

Marakwet Teachers Sacco

19

The two major competitors are within the main road link from the Edoret town and can

easily be accessed or seen from the main road as illustrated in the figure 2.3 above. This

proves to be and advantage considering the two are nearer to Kapsowar Boys Secondary

School. Umaini centre is considered to be a big institution considering the nature if

services it offers and its clientele base. Bizna Institute is a small institution seeking to

grow its operations and services offered. To take on the advantage of the two stated

institutions, Naet inspire office and other support facilities will be on the first floor of

Marakwet teachers sacco plaza in Kapsowar town a prime section of a fast growing rural

urban center with schools, shopping centers, entertainment spots etc.

The centre location is designed for high volume of business the whole year round, with

revenues and profits to match. The prestigious modern building is a selling point in itself.

Teachers often run many of their activities within the premises and they take progressive

information and report to their schools and villages

The facility is served with a reliable public transport and an ample parking with

maximum security throughout. The choice of the location is informed by cheap cost of

operations given that rent, clean piped water, electricity and other overheads are

relatively affordable.

2.2.2 Comparison of the proposed products and with those of the potential competitors.

Naet Inspire Centre will seek to provide quality inspirational and educational materials

that are comprehensive and conclusive. The business will be dealing with inspirational

and motivational services which empowers the youth in many areas of life which include

talent search, career coaching guidance and counseling management programs and other

alternatives to livelihoods

The services offered in the centre will reduce cases of school dropouts and school leavers

will be equipped with skills that will make them make well informed decisions about

their lives. The services will ensure better and high performance standards, of quality,

good reputation, an after sales service that will seek to ensure what is learnt is being

20

utilized well. This is made in a comparison below in table 2.4. Naet services have a

competitive advantage that will lead to an empowered society and an enabling

environment for all to invest.

Table 2.4 Comparison of products

Indicators Bizna Institute Tumaini centre Others

Performance 4 5 3

Quality 3 4 2

Reputation 3 4 3

After sales service 1 1 1

Total 11 13 9

Key: 1. Very Low 2. Low 3. Moderate 4.High 5. Very High

Source Author 2010

2.2.3 Description of Overall strength

Of the two major competitors they do strive to realize performance of out put as it is

noted that allot of investment is put to ensure better performance. The competitor’s

reputation is not all that good since there is no after sales service to ensure what is learnt

is well utilized. To this extent Naet will offer in collaboration with organizations in the

area and out at towns like Eldoret to provide Job shadows and attachments.

Another weakness could be in terms of competitor’s level of technology realization

which is at a low rating considering students search for technological related services

within the business and market centers at Marakwet. In terms of Location the competitors

are well placed, management is also moderately well managed distribution chain as per

the courses on offer can be said to be high since there is demand for learning based

institutions in the area. This is further stated in table 2.5.

21

Table 2.5 Comparison of products

Indicators Bizna Institute Tumaini centre Others

Technology 2 3 3

Location 5 5 3

Management 3 3 3

Distribution channel

4 4 4

Total 14 15 13

Key: 1. Very Low 2. Low 3. Moderate 4.High 5. Very High

Source Author 2010

In relation to the stated strengths and weakness amongst the two major competitors, Naet

will ensure it employees well equipped/ knowledge and transparent leadership into the

centre, Invest heavily on ICT, come up with a satellite centre at Eldoret town to curb the

rural urban migration. Naet will also ensure it has a well informed sales team that will

drive the centers sales at a continuous growth level.

2.3 THE PRICING STRATEGY

The pricing strategy for Naet services will be based on exploiting its strengths/advantage

over the competitors. The competitors are likely to continue charging high rates for the

services but Naet will equip it self for realization of growing numbers at each quarter.

Based on the number of heads per trainer the centre will come up with fees that are

justifiable. Competitor’s prices will also be studied and the nature of services they offer

and the duration they offer such services. The customers who have stayed longer in the

institution will incur some discounts in cost of systems and services on offer. The

Institution will come up with a credit policy based on the duration, performance, payment

pattern and a packaged passed policy.

22

2.4 SALES TACTICS

Naet founders recognize that to achieve the Company’s revenue objectives, they have to

successfully convince on the advantages of services on offer.

Each member of the top management team is going to play a leading role in exploring

and finding new markets through personal selling. Negotiating skills to close long-term

business deals with learning institution will be considered. Thus the Sales team will be

composed of the centers staff and with time use the graduates to share on there

experience to others who could be posing as potential clients

To start with the centre will consider marketing within Marakwet area and later to Eldoret

Town. The centre will work on an effective promotional campaign to accomplish through

primary objectives as:

Attract a quality workforce that has a desire to be successful

Attract customers who are constantly looking at knowledge and

empowerment

2.5 ADVERTISING AND PROMOTION STRATEGY

2.5.1 Advertising Strategy

The Center will use the following medias and promotion tools to advertise and ensure the

center gain considerable recognition:

o Yellow pages

o Brochures – The objective of brochures is to portray goals as an

attractive functionality

o Radio campaigns in local FM stations

o Caps and T-shirts

o Signs located strategically throughout Eldoret and Marakwet environs

o Word of mouth from satisfied customers

The following are the projected monthly costs of advertising campaigns .The advertising

costs are variable in nature as not all areas of advertising are to be incurred on a monthly

basis.

23

The effectiveness measured through the enrollment numbers. Within the application form

a column will be developed to gather information on how the client/student obtained

information about the center.

Table 2.5 The Projected Monthly Costs of Advertising Campaigns

ITEM COST (kshs)

Yellow pages 5,000

Brochures 15,000

Radio campaigns at local radio

Stations

15,000

Sign boards 10,000

Caps and T-shirts 25,000

Total 70,000

Source Author 2010

2.5.2 Methods of Promotion

The company will develop a marketing campaign tools that will conform to its marketing

strategies. The tools are those that can easily be target customers and even the untargeted

one who can get convinced in the process.

Medias such as electronic, print and exhibitions will be employed to ensure the entire

target and the potential customers are attained and well address. The proposed media’s

are widely used in the area and can easily be applied to reach the market. The media’s are

also quite affordable and the proprietor’s can meet it.

Other medias and channels will also be explored at to determine the viability and the

level of effectiveness.

The effectiveness of the proposed media will be measured through the enrollment

numbers. Within the application form a column will be developed to gather information

on how the client/student obtained information about the center.

24

CHAPTER THREE

3.0 THE ORGANISATION PLAN

3.1 THE ORGANISATION STRUCTURE

Figure 3.1 Organisation Chart

Source Author 2010

The centre is the brain child of Mr Chepkurir Kipkemoi a holder of a Master Degree in

Business Administration-Human resource specialization, a Bachelors Degree in

Education Counseling and currently pursuing a professional Higher Diploma in Human

Resource management. Mr Chepkurir Kipkemoi will be the Managing Directors of the

Centre and will also seat in the centers BOD. The BOD will comprise of the proprietor

and the collaborators among the training institution representatives that will be targeted

and invited to own shares in the center.

Operations will conducted by the finance manager in charge of financial matters,

administration and human resource manager dealing with labour issues and the

management of the administrative functions in the center, he or she will have support

staff to help in smooth services operations in the center. Teaching staff’s manager will be

head of curriculum and teaching supervision with the help of teachers and mentors under

him or her.

25

Board of Directors

Managing Directors

Finance Manager Teaching Staffs Manager Administration & HR Manager

Teachers, Mentors and Counselors

Support Staff

3.2 THE MANAGEMENT TEAM

3.2.1 The Managing Director

oResponsible for provision of overall guidance and leadership of the staff

oCreate relationships with our clients

oAnalyzes market and economic conditions to forecast prospective clients

oEstablish & implement short and long term organizational goals, objectives, policies

and operational procedures

oTo monitor and evaluate the centers effectiveness

oTo effect changes required for improvement of services

oTo review the systems and procedures of the operations of Naet Inspire Center

oTo ensure operations and services are in line with the changes in the external

environment

oOrganize for presentations to the BOD and seek strategic advise from the BOD

3.2.2 Finance Manager

o Provide financial services to the center

o Collect money on behalf of the center

o Make payments on behalf of the center

o Proper recording and keeping of accounts books

o Work with external Auditors

o Present financial reports to the BOD through the MD

o Implement budget provisions

o Advice the BOD and the MD on financial matters

o Organize and advertise marketing matters with the entire management team

26

3.2.3 Administration & HR Manager

o Promote the spirit of team work among employees

o Provide lead responsibility for maintaining developing and improving office

practices and procedures

o Undertakes Human Resource Planning

o Prepares the budget for general office administration and distribution of petty

cash

o Ensure a good leaning atmosphere prevails

o Organize and advertise marketing matters with the entire management team

o Support administrative facilities and staff including staff development

o Management of HR matters, including staff training and development

o Directs and coordinates activities of personnel involved in marketing and the

support staff

o Seats in the interview panel

o Terminates employment of teaching staff with consultation from the teaching

manager and the MD

o Directs compliance of staff with established centre policies, procedures and

standards such as safe keeping of Company funds and property, personnel and

grievance practices

3.2.4 Teaching Staffs Manager

o In charge of curriculum planning

o Teacher supervision

o Head of examinations

o Seats in the interview panel

o Participate in promotion tools preparations

o Advise the MD on curriculum developments

o Address student and teacher issues

27

o Carry out teacher training planning with the HR department

28

3.2.5 Teachers, Mentors and Counselors

o Provide teaching services

o Mentor the students

o Invigilation

o Participate in syllabus development

o Act as a link between students and the management

o Implement the management directives

3.2.6 Support Staffs

o Ensure cleanliness on the center

o Act as a messenger

o Cleaning of the lorry

o Buying of stationery with the assistance of administration manager

o Performing other duties as may be assigned from time to time

o Maintaining the centre assets

Table 3.1 The Entire Personnel Remuneration

Designation Remuneration (kshs)

The Managing Director 50,000

Finance Manager 35,000

Administration & HR Manager 30,000

Teaching Staffs Manager 30,000

Teachers, Mentors and Counselors 20,000

Support Staffs 10,000

Totals 175,000

Source Author 2010

29

3.3.2 Evaluation and Development of Employees

Naet has developed a clear written recruitment policy and an evaluation policy. The

policy offers guidelines to be followed in this important exercise.

a) It is the policy of the Center to ensure that there is no discrimination in recruitment

and appraisals based on gender, tribe, race or nationality.

b) The recruitment exercise is to be conducted officially and effectively putting into

consideration the time taken and cost factors

c) All applicants must be long listed as soon as their applications are received

d) Applicants who fail to meet application deadlines are to be considered

e) Whenever a vacancy arises, internal applicants are given first priority before

considering external applicants. Before the final selection of the applicants, they

must undergo a complete selection process.

f) Recruitment advertisements must contain detailed job descriptions and personnel

specifications.

Evaluation is to be conducted quarterly and marks awarded for a yearly grading

arrangements. Those will excel in their duties and performances are entitled to salary

increments and bonuses as the BOD sees suitable.

On training the employees are placed on the job training until a time when they can work

on their own. The training is suitable as business operations continue parallel with

training. The budget for training for the first year of operation is Ksh. 70,000.

Training Policy

1. 20% of the salary is paid by all employees

2. All employees must be given equal training opportunities

30

3.3 SUPPORT SERVICES

Bankers Equity Bank Marakwet Branch

P.O.Box 565 Eldoret

Advocates Koech & Sang Company Advocates

P.O.Box 681 Eldoret

Insurance Amaco Insurance

P.O.Box 917 Eldoret

Business Advisor Center for Research & Management Africa

P.O.Box 28189 – 00200 Nairobi

View Park Towers

Postal Services Kapsowor Postal Office

P.O.Box 40 – Kapsowor

31

CHAPTER FOUR

4.0 THE OPERATIONAL PLAN

32