This business plan was prepared before having any prior knowledge about

research and other method how to write 2012/2013. It is real study and the
business owner paid me only 10,000 birr but they have got loan 20,000,000 and
you can vist the hospital its not operational due to power supply problem .please
give me your freed back.

1.0 Executive Summary

The purpose of this business plan is to raise 21 million birr for the development of a
hospital while 60million birr is the expected total investment forfinancials and
operational expenditures over the next fiveyears. The General Hospital is found in
Oromya Regional state the nearby Addis AbabaHoleta Town. Itwill provide
emergency and general medical care services to patients in its targeted market. The
Company will launch its operation in the year 2014.

1.1 Medical Services

The General Hospital has been designed to become a recognized leader inOromya
Regional State; particularly, WesternOromia Zone including 11 sub-zonal
administrations and Holeta Town for its expansive line of emergency, clinical, and
surgical services. The facility will feature 5,000sqm of clinical space that will include
a full scale emergency room, several operating rooms, inpatient, outpatient as well as a
radiology department. The General Hospital will also have 50 beds for in patient care.
Currently, The Owner completed a full historical and archaeological survey, andbuilt
the hospital at a cost of 37 million birr.

1.2 The Financing

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The Owner is seeking to raise 21 million birr from Financial Backers. The terms,
equity investment covenants, and payouts are to be discussed during negotiations.
However, this business plan assumes that the Company will give guarantee 61% of
equity (building cost)as a mortgage in exchange for the require capital.

3 Mission Statement

The Hospital’s goal is to provide the general public with a 24hours health care
services, inpatient and outpatient based hospital facility that will also provides urgent
healthcare to people with medical emergencies. The Company will provide patients
with compassionate and comprehensive medical treatments for all of their emergency
care, clinical, and surgical needs.

1.4 Management Profile

The Company was founded by Mr.Sileshi and his family whohas more than 15 years
of experience in the medical and healthcare industry. Through their expertise, they
intended to be able to bring the operations of the business to profitability within its
first year of operations.

1.5 Sales Forecasts

The Owner expects a strong rate of growth at the start of operations. Below are the
expected financials over the next five years.

SeglenWajee General Hospital

Annual Sales forecast based on Market Study
Table 1.1

Average
Years Patient flow Price/patient Annual Service Revenues

2|Page
 1st Year 36,000.00 800 28,800,000.00

2nd Year 39,240.00 872 34,217,280.00

3st Year 43,164.00 915.6 39,520,958.40

4th Year 49,206.00 961.38 47,305,664.28

5thYea
r 50,000.00 1009.44 50,472,000.00

  Total Revenues   200,315,902.68

1.6 Expansion Plan

As time progresses, Management will continually seek to expand the visibility of the
facility within the target market. This will be accomplished by continuing to reinvest
into the hospital’s infrastructure to accommodate specialist physicians that can
increase the range of medical services offered by the Hospital. The Company may also
seek to develop an academic affiliation with a regionally based medical school so that
the Hospital can better its reputation as a premier provider of medical services to the
community.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

It is owned byMr. SileshiAssefa ,and has the registered name SeglenWajee General
Hospital. The Company is a Sole proprietorshipin OromiaRegional StateHoleta
Town(Ethiopia).

2.2 Required Funds

At this time, theGeneral Hospital requires 60million birr of total investment. Below is
a breakdown of how these funds will be used:

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Budget allocation Description
Buildings & Civil Work 37,412,800.00 birr
Machinery and Equipment 11,300,000.00
Office Equipment and Furniture2,100,000.00
Motor Vehicle2,500,000.00
Sub-total53,312,800
Pre operating Cost 675,000.00
Working Capital5,490,743.00

2.5InvestorsEquit
y

At this time, theOwner is seeking to assure a 61% of the total investment for the
Hospital in exchange of21 million birr forthe needed capital. The investor will also
havea seat on the Management team and a regular stream of retained earning starting
from the first year of operations.

2.4 Management Equity

Eng.Silshiowns 100% of the Hospital. This capital structure will remain the same once
the requisite capital is raised and the Company hires its Senior Management Team.

3.0 Medical Services

As discussed in the executive summary, the General Hospital is seeking to develop an

expansive facility that will provide emergency, medical, and surgical services to the
residents of the target market. Engineer Silshi anticipates that upon completion, the
Hospital will feature twooperating rooms, laboratories, a full scale emergency room,
an in house pharmacy, a radiology department, and a general medical laboratory. The

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hospital facility will be 5,000 square meter of occupational space. The total in patient
space is expected to be about 50 beds. By the second year of operation, the Hospital is
expected to operate at 72 % occupancy. For each section of the hospital, the latest in
medical technology will be acquired. Currently, Mr. Silshi has sourced a number of
medical leasing companies that the Hospital will use to acquire its medical/surgical
assets. This is especially true within the radiology department, which will feature the
latest technology for diagnostic services and MCH treatment

The Hospital will provide services which are listed below

Nursing Services .
Patient flow services
InPatient service
Internal Medicine Services
Pediatric Services...
Surgical and Orthopedic Care Services
Gynecology and Obstetrics Care Services
Anesthesia Services
Intensive Care unit (ICU) Services
Mental Healthcare Services
Dentistry Services
Otorhinolaryngology (ORL) Services
Ophthalmology Services
Dermatology Services
Oncology Services
Rehabilitation Services
Radiology Services
Medical Laboratory Services
Pathology Services

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 Pharmaceutical Services
Blood Transfusion Services
Ambulance Services
Infection Prevention
Medical Recording
Food and Dietary Services
Sanitation and Waste Management
Housekeeping,Laundry and Maintenance Services

The above describedservices meet standard set byEthiopian Food, Medicine &
Healthcare Administration and Control Authority (FMHACA)

4.0 Strategic and Market Analysis

4.1 Economic Outlook

The project can create employment for 83 people. In addition to supply of the
domesticneeds, the project will generate Birr 38.9 million in terms of tax
revenuewithin five years. The projectwill provide the basic necessity for residents of
WesternShewa Zonein general and Holeta town in particular toincrease
theirproductivity.

4.2 Industry Analysis and Market Study

Ethiopia with its total population 90 million [2011] has the population growth rate
3.2% per year. It indicates that the population will be 102 million by the year 2015
while the health supplies unable to meet the current demand as well as for the coming
years.

According to the Canadian Network for international surgery (www.cnis.ca), the life
expectancy at birth is 56/year, fertility rate 6.1 children/women, and maternal
mortality ratio 720/100,000 live births in Ethiopia. With this regard the health
professional ratio is below the international standard which is less than 5
physician/100000 people. As a result of this, Ethiopia in a Global Health Industry

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ranked157 on UN Human Development Index and only 6% of births attended by a
skilled attendant.

So, private sector health investment in Hospitals is the back-bone for the overall
development in health services. General hospital is a medical facility that provides
health care to both inpatients and outpatients and treats many types of diseases
with medical professionals. In Ethiopia general hospital is supposed to serve
50,000 people/annum and provide all types of clinical service including surgery.
Moreover, improved health service coverage and quality will have a positive
effect in improvingthe quality of life of the community.

MARKET STUDY

The market feasibility study includes all the governmental and private health care
service suppliers in Addis Ababa and OrmiyaRegional State in Western Shewa Zone ;
Ambo ,Genchi, Addis Alem ,Muger , Enchene and Holeta town.
Method of market survey; in our target market was focused on gathering primary Data
through direct observation & interviewing the health professionals in the above
mentioned Oromiya towns. But we usedsecondary data for Addis Ababa and other
information in this business plan fromwww.Centralstatisticsagency.gov.et, investment
opportunity in Ethiopia, Addis Ababa Health office Finaldraft of Health Service
Standards in Ethiopia, Oromiya Health Office Planning Department & www
ehiomedic.com.
Market Demand
Health service provision is one of the most priority service areas for the population.
The target market for this venture is Oromiya Regional State Western Shewa Zone but
the research includes health service coverage in Addis Ababa for potential clients in
the future. At present, health service providers in Addis Ababa and around

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 Oromiyaregions are Federal Government Agencies,Oromiya Health Office, Addis
Ababa Health Bureau, Non Governmental Organizations (NGOs), Factories, and the
Private Entrepreneurs. The number of registered and licensed Hospitals by the A/A
City Administration, and Western Shew
a Zone in 2011/12 is 52 out of which 48 Hospitals are densely distributed in the
capital city while 3 primary hospitals are scarcely distributed with focusing only
preventive health care service in Western Shewa .
The Government plan to deliver health care service by General Hospital is in the rate
of one referral hospital to 1.5million people. But the feasibility study indicates that the
total population of Western Shewa Zone is nearly 3 million without one General
Hospital in the private sector and the Government as well. So, the private General
Hospital investment at Holeta Town is inspiring to health care service for the people
and the Government.

NUMBER OF HEALTH FACILITIES IN ADDIS ABABA CITY AND WESTERN SHEWA OROMYA
REGIONAL STATE Table 4.1

Types of Health Facilities

All types of
S/No Health Service Suppliers Hospitals Health Centers Clinics Health Post Totals

Oromia RegionWestern Shewa

1 Zone  3 Primary  31  27  97  158

2 Addis Ababa Health Bureau  6 Referral  46  9  34  95

3 Ministry of Health  7Referal  0  0  0  7

4 Addis Ababa University  1Referral  0  0  0  1

5 Ministry of Defense  2Referral  0  0  0  2

6 Police Force  1Referral  0  0  0  1

Total Government  20  77  36  131  264

% Share by Gov  38%  95%  5%    24%

7 NGO  2  3  30  8  44?

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 % Share by NGO  4%  4%  4%    4%

8 Factories      102    102

% Share by Factories      13%    11%

9 Private Sector  30  1  607?    638

  % Share by Private Sector    1%  78%    61%

  Total  52  81  775  138  1046

Sources: Some Health service Information,Westernshewa Health offices, A.A Health

Office.

As can be seen from Table 4.1 the distribution of health facilities is:
52 hospitals,
81 health centers,
775 clinics, and
138 health posts.
The health service coverage and quality is improving in the city and the nearby
oromiya Regional State towns from time to time. However, health service supply is
still below the standards established by the Ministry of Health. According to the
standard set by the Ministry of Health; one district hospital is for 250,000 people, one
regional hospital for 1,500,000 people and one specialized hospitalfor5,000,000
million people.
Hospitals in Addis Ababa are not limited to providing services for the people residing
in the city only. As the city is the center of the country in many socio-economic
aspects of peoples’ life and due to the expectations that better health services are
available in AddisAbaba than in other regional centers, health facilities in Addis
Ababa regions provide service to significant number of population in the surrounding
areas out side the city and other regional states. As a result, practically high shortage
of hospital services is observed in and around the city

4.3 Customer Profile

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As any person with a medical issue is a potential patient of the Hospital, it is difficult
to determine the “average” demographics of people that will use the medical services
rendered by the Company. However, Management anticipates that at least 40% of
patients will be over the age of 60 with chronic medical conditions and the rest 60% is
expected from birth to 60years old people

4.4 Competitive Analysis

In the target market there is no private or Governmental referral Hospital which can be
considered as a strong competitor. So, the current market research confirmed that the
business will provide service without competition.

5.0 Marketing Plan

The Hospital intends to maintain an extensive marketing campaign that will ensure
maximum visibility for the business in its targeted market. Below is an overview of
the marketingplan, strategies and objectives of the Company.

Standard Set by Federal Minstery of Health

For General Hospital investment
Table 4.2
Description 1st Year 2nd Year 3rd Year
Capacity 75% 85% 100%
Patient Flow /Annum 37,500 42500 50,000
%Increase   13 18
Source/ www.invest in Ethiopia.com

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 Patient Flow /Annum

50,000.00

27,500.00 1st Year

2nd Year
30,000.00 3rd year
4th Year
5thYear

37,500.00 32,500.00

Health Service Demand Forecast

for the first year
Table 4.3
  Patient Flow Average Service Charge Service Revenues

800 80,000.00
Patient Flow/Day 100

800 2,400,000.00
Patient Flow/Month 3000
800 28,800,000.00
Patient Flow/Year 36000

The demand forecast is based on the market survey undertaken in the year 2013 by the
market study team . It shows that there is chronic health care problem agreed by all
interviewed professionals. In the western shewaoromiya zone, the total current
population is estimated to be 3 million. In this zone, there are three primary
hospitalswhich are found in Ambo town ,Ginde Beret and Chelia.Ambo Hospital is
operating without x-ray and ultrasound services .The hospital has 86 beds which
cannot be accommodated by its premises which forced the Hospital administration to

11 | P a g e
use usually corridors for inpatient services. They usually refers to TikurAnbesa and
Paulos Hospitals but most of the time ,the patients are unable to reach the referral
Hospital because of different factors such as Economic ,Social and other personal
reasons. Health service problem is severe to the woreda towns located along the road
Ambo to Addis Ababa;Ginchi, Addis Alem ,Holeta ,Muger and Enchene .They
have31 health centers in numbers with out at least full laboratorial services . The
health center head nurses confirm that there is 200 patient flow per day and 70 to
80% of cases are beyond the scope of their facilities .According to the interview ,the
societys’ economic capability is increasing from time to time ;however, they are
unable get quality of health services as demanded. So , our hospital intended to
alleviate problem through high-tech medical facilities and well trained skilled
professionalswith 24 hour services at Holeta town .The demand forecast has a
conservative approach which is based on the minimum patient fllow 50% lower than
the health centers has been experiencing.

5.1Marketing Objectives

Establish relationships with doctors, allied health professionals, NGO working with
private sectors and ambulatory companies within the target market. Implement a
local campaign with the Company’s targeted market via the use of local newspaper
advertisements and word of mouth advertising. Develop an online presence by
developing a website and placing the Company’s name and contact information
with online directories.

5.2 Marketing Strategies

Management intends on using a number of strategies to increase the visibility of the

Hospital and the services it provides. As the business is a 24 hour facility, the

12 | P a g e
Company intends to market the fact that in the event of an emergency, the Hospital
can provide appropriate medical treatment. At the onset of operations, the Company
will distribute advertisements within local newspaper circulars to inform the public of
the Hospital’s opening. The business will also develop referral relationships among
locally based physicians and allied health professionals so that patients will be referred
to the hospital in the event of an emergency. The Company will also have listings in
local directories and the Yellow Books to ensure that patients can quickly find the
contact information for the hospital and its location. Finally,the Owner and the
Management Team also develop relationships with local ambulatory companies so
that patients can be brought to the facility in the event of a medical emergency.

5.3 Pricing

The following table shows the minimum average price per patient.

SeglenWajee General Hospital

Annual Sales forecast based on Market Study
Average Medical Service Price/PatientTable4.4

Card /Patient     50

Lab/Patient     350
others     400
  Total Average Price 800

6. HOSPITAL CAPACITY AND OPERATIONAL PRPGRAMME

6.1. Hospital Service Capacity

Based on the market study shown above, the projected demand for additional hospitals

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for the year 2013 is 9, and this figure will grow to 11 by the year 2015, and then to 16
bythe year 2020 in Addis Ababa and the nearby Western ShewaOromiya Zone.
Examining the demand projection in Table 3.2, it is observed that there isa need of one
additional hospital every year starting from year 2006 until 2019. The study will
consider an establishment of one general hospital comprised of the
followingdepartments:

a) Emergency Room,
b) Surgical Suites,
c) Intensive Care Units (ICUS),
d) Pediatric and Maternity Awards, and
e) Departments of Radiology, Anesthesiology, Pathology, And Rehabilitation

Medicines.

This hospital will employ medical, nursing and support staff to provide in-patient care
to people who require close medical monitoring and out-patient care to people who
need treatment but not constant medical attention.
The envisaged general hospital will have 50 beds for patients. The in patients are
assumed to wait for a maximum of 10 days on average, making 1,825 patients
annum.Since the general hospital is assumed to serve 50,000 patients per annum, the
remaining48,125 persons are outpatients. Of the total 50,000 patients that will be
treated in the hospital in a year, it is assumed that about 65% will take x-ray and
laboratory check-ups(i.e., 32,500 patients).
The general hospital in caption will provide diagnosinghealth problems, surgery,
rehabilitation, health education programs, and nursing.

6.2. Operational Program of the Hospital

The hospital can start providing service at 72% of its full capacity in the first year, and
slowly build-up its service to 78% ,86%,98% and then to 100%, during the second ,
third , fourth and fifth year, respectively. Table 3.3 shows operational build-up
programmed.
SeglenWajee General Hospital

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 Capacity utilization plan
Table 6.1
Description 1st Year 2nd Year 3rd year 4th Year 5thYear
0.7 0. 0. 0.9 1.
Capacity% 2 78 86 8 00
Patient Flow 36,000.0 39,240. 43,164. 49,206.0 50,000.
/Annum 0 00 00 0 00
3,240. 7,164. 6,042.0 794.
Increase - 00 00 0 00

6.3. MEDICAL SUPPLIES AND UTILITIES

A. MEDICAL SUPPLIES

The medical supplies required by the general hospital and corresponding costs are
indicated in Table.

MEDICAL SUPPLIES REQUIREMENT AND ESTIMATED COST

(IN PAKAGE) Table 6.2
Qt
Sr Description y CIF Price
1 Adrenaline injection 40 197,280 
2 Minophyllioc injection 20  123,300
3 Savlon (chlorhexidene +Cotrimide) 25  135,630
4 Alcohol solution 79% 15  55,485
5 Dextrese 40% injection 10  24,660
6 Ergometrine maleate injection tabs 20  133,164
7 Hydrocortisone sodium succinate 5  49,320
8 Lidocaine hydrochloride injection 5  43,155
9 Procaine hydrochloride injection 10  66,592
1
0 Vitamin k injection 10  98,640

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 1
1 Hyoscinehydropromide injection 10  56,718
1
2 Bandage different sizes 40  220,953
1
3 Cotton 40  128,232
1
4 Disposable syringes different types 20  133,164
1
5 Disposable needle different types 20  93,708
1  2,185,72
6 All types of L abratorica raw materials 35 0
32
  Grand Total 5  3,745,720

B. UTILITIES
The major utilities required by the general hospital are electricity and water. The
required quantity of these utilities and corresponding cost are indicated Table 6.3

ANNUAL UTILITIES REQUIREMENT AND COSTTable 6.3

SrNo. Utility Unit ofMeasure Qty. Cost(‘000 Birr)
1 Electricity kWh 200,000 94.72
2 Water m3 10,000 32.5
Total 127.22

.6.4. TECHNOLOGY & ENGINEERING

A.Medical Equipment
The list of medical equipment required by the envisaged general hospital is shown in
Table 6.4. The total cost of medical equipment is estimated at Birr 11 million, out of
which Birr 11 million is required in foreign currency. It is assumed that all equipment
will be purchased from foreign markets.

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 REQUIRED MEDICAL EQUIPMENT AND COST
Table 6.4
s/ Medical Equipment unit Quantity Unit Price Total
1 Sphygmomanometer pcs pcs 2
152,702.70 305,405.41
2 Clinical thermometers
(assorted) set 1
30,540.54 30,540.54
3 Diagnostic set set set 4
76,351.35 305,405.41
4 Scale infant pcs 4
7,635.14 30,540.54
5 Scale adult pcs 4
9,162.16 36,648.65
6 Examination bed pcs 6
6,108.11 36,648.65
7 Hospital bed pcs 50
9,162.16 458,108.11
8 Infusion stand pcs 5
9,162.16 45,810.81
9 Instruments sterilizer pcs 2
76,351.35 152,702.70
10 Refrigerator pcs 2
45,810.81 91,621.62
11 Stethoscope pcs 2
45,810.81 91,621.62
12 Centrifuge pcs 4
15,270.27 61,081.08
13 Lab. Bench pcs 2
9,162.16 18,324.32
14 Glass ware (assorted) set set 4
10,689.19 42,756.76
15 Timer pcs 2
3,054.05 6,108.11
16 Photometer pcs 2
30,540.54 61,081.08
17 Hemoglobin pipette set 2
9,162.16 18,324.32
18 WBC pipette set 2
9,162.16 18,324.32
19 Hemocytometer with its cover pcs 1
slide 91,621.62 91,621.62
20 Test tubes (assorted) set 2
9,162.16 18,324.32

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21 Measuring pipettes (assorted) set 2
3,054.05 6,108.11
22 Electrical boiler pcs 1
1,527,027.03 1,527,027.03
23 Delivery table pcs 4
4,581.08 18,324.32
24 Foetal monitor pcs 1
916,216.22 916,216.22
25 Vacuum extractor/retoscope pcs 1
45,810.81 45,810.81
26 Aspirator/manual pcs 2
3,054.05 6,108.11
27 Breast pump pcs 2
21,378.38 42,756.76
28 Suction unit pcs 1
15,270.27 15,270.27
29 Light portable/mobile pcs 2
1,527.03 3,054.05
30 Auxiliary operating light pcs 2
15,270.27 30,540.54
31 minor operating set set 3
183,243.24 549,729.73
32 Autoclave pcs 2
152,702.70 305,405.41
33 Delivery kit set set 2
4,581.08 9,162.16
34 Stethoscope (baby) pcs pcs 2
30,540.54 61,081.08
35 Oto-opthalmoscope pcs pcs 2
91,621.62 183,243.24
36 Hand reflector pcs pcs 2
4,581.08 9,162.16
37 Respiration bag adult pcs pcs 4
4,581.08 18,324.32
38 Respiration bag babies pcs pcs 4
5,497.30 21,989.19
39 Oxygen cylinder 20 lts pcs pcs 2
30,540.54 61,081.08
40 Tourniquet pcs pcs 2
2,748.65 5,497.30
41 Forceps assorted pcs pcs 2
9,162.16 18,324.32
42 Enema set set set 2 45,810.81 91621.62
43 Pediatric surgical kit set set 2

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 106,891.89 213,783.78
44 Sphygmomanometer pcs 1
(pediatric,various) 94,675.68 94,675.68
45 X-ray machine pcs pcs 1
3,664,864.86 3,664,864.86
46 Fluoroscopy pcs pcs 2
610,810.81 1,221,621.62
47 Viewers set set 1
76,351.35 76,351.35
48 Cassettes intensifying screens, set 1
film set 152,702.70 152,702.70

49 Hanger (different types) set 1

9,162.16 9,162.16
Grand Total 11,300,000.00

Source of Medical Equipment

The medical equipment required by the envisaged hospital can be acquired from the
following supplier.

Raja medical equipment supplier

West Bombay 123456, INDIA
Raj Bavanstreet
Fax. 213-346789

B. ENGINEERING

Land, Building and Civil Works

The total area requirement of the project is estimated at 5,000 m2, out of which the
built uparea is estimated to be 2,800 m2. The total cost of building and cost of other
civil works, at anaverage cost of Birr 7,466 per m2 is estimated to be Birr 37 million
birr.

The details of the various buildings are given below:

Table6.5

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S/No Departments Units of Area
measurment
1 Emergency room Sq.meters 255sq. meters
2. Surgical room 150 sq. meters
3. Intensive Care 150 sq. meters
4. Pediatric and Maternity 255 sq. meters
5. Departments ( x 4 ) and Wards 1110 sq. meters
6. Administration Building 255 sq. meters
7. General purpose 625 sq. meters
Total 2800 sq meters

20 | P a g e
SECTION SIX: HUMANRESOURCE AND MANAGEMENT

7.0 Organizational Plan and Personnel Summary

7.1. Human Resources
7.1.1. The hospital will have Human Resource Department (HRD) which carries out the
major functions of Human Resource Management (HRM).
7.1.2. Each service units of the hospital will maintain a sufficient number of staff with the
qualifications, training and skills necessary to meet patient needs
7.1.3. All recruitment and selection Will follow consistent approach using the recruitment
and selection manual approved by the hospital management/ governing board.
7.1.4. All health professional will practice his/her profession in the hospital with
Professional license from the Authority or appropriate regional organ.
7.1.5 The health professional will not practice his/her profession during the period of
such infection and his/her rights provided under the relevant employment law and the
hospital’s HR manual will be respected.
7.2. Staffing Plan
7.2.1. The hospital has available the minimum staff requirement for General Hospital.
7.2.2. For additional staff a staffing plan shall be developed collaboratively by the
different service units and management, which identifies the number and types of the
staff.
7.2.3. The planning process shall use recognizable process for estimating the staffing
need like Workload Indicator for Staffing Need (WISN) method.

7.2.4. The staffing plan shall be reviewed on an ongoing basis and updated as necessary

7.2.5. The staffing plan will define the following elements:

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(a) The total number and types of staff needed for the hospital as a whole and for each
service unit

(b) The total number and types of staff currently available for the hospital as a whole and
each service unit
(c) The required education, skills, knowledge, and experience required for each
Position (The plan is periodically reviewed and updated as required, but it willl be done
atleast every two years.)
(e) Expected/existing workload
6.2.6. The hospital will have in effect a contingency plan for assuring adequate staffing at
all times. The plan shall detail policies and procedures to regulate closure of available
bedsor services, if actual staffing levels fall below specified levels.
7.2.7. The general hospital will have at least the following summary of professionals and
staffing:

SeglenWajee General Hospital

MANPOWER REQUIREMENT AND LABOUR COST
Table 7.1

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 Monthly
Salary[bir
Ser Requir r]/Employ Total Monthly Annual
No Description ed No ee Salary Salary[birr]
1   CEO 1 8,000.00 8,000.00 96,000.00
3   FM 1 7,000.00 7,000.00 84,000.00
3   Marketing M 1 4,000.00 4,000.00 48,000.00
4   Accountant 1 3,500.00 3,500.00 42,000.00
5   Medical Director 1 10,000.00 10,000.00 120,000.00
6   Admin 1 2,500.00 2,500.00 30,000.00
7 Medical Doctor 6 12,000.00 72,000.00 864,000.00
8 Mraton[Head Nurse] 2 2,500.00 5,000.00 60,000.00
9 Nurse 8 2,000.00 16,000.00 192,000.00
10 Health Assistant 6 3,000.00 18,000.00 216,000.00
11 Health Officer 2 1,500.00 3,000.00 36,000.00
12 Midwife 4 3,000.00 12,000.00 144,000.00
13 Radiographer 2 2,000.00 4,000.00 48,000.00
14 Assistant X-ray tech 2 1,000.00 2,000.00 24,000.00
15 Lab Technician 4 2,400.00 9,600.00 115,200.00
16 Card Room Staff 4 600.00 2,400.00 28800
17 Assistant Lab Technician 3 1,500.00 4,500.00 54000
18 Secretary[Receiptoninst] 2 700.00 1,400.00 16800
19 Cleaner 18 600.00 10,800.00 129600
20 Driver 2 1,200.00 2,400.00 28800
21 Guards 12 600.00 7,200.00 86400
  Grand Total 83 69,600.00 205,300.00 2,463,600.00

7.3. Job Description and Orientations

7.3.1. All staffs will be provided with current written job descriptions and be oriented to
their specific job responsibilities at appointment

23 | P a g e
7.3.2. The job description will include the title and grade of the position, specific function
of the job, job requirement, reporting mechanism, evaluation criteria and description of
job site and work environment.
7.3.3. The orientation program for all employees will include three levels of orientation:
hospital wide, service unit and job specific:
7.3.4. Orientation to hospital structure and administration will be provided by hospital
management.
7.3.5. Orientation to hospital policies, including all environmental safety programs,
infection control, and quality improvement will be provided
7.3.6. Staff members who are not licensed to independently practice will have their
responsibilities defined in a current job description.
7.3.7. Each hospital will provide and maintain evidence of an orientation program for all
new staff and, as needed, for existing staff who are given new assignments. The
orientation program will include:
(a) Job duties and responsibilities
(b) Hospital's sanitation and infection control programs;
(c) Organizational structure within the hospital;
(d) Patient rights;
(e) Patient care policies and procedures relevant to the job;
(f) Personnel policies and procedures;
(g) Emergency procedures;
(h) The Disaster preparedness plan; and
(i) Reporting requirements for abuse, neglect or exploitation
7.4. Staff Education:
7.4.1. The hospital will ensure that staffs receive training in order to perform assigned job
responsibilities.

24 | P a g e
7.4.2. Each staff member will receive ongoing Continuing Professional Development
(CPD)
to maintain or advance his or her skills and knowledge
7.4.3. The CPD will be relevant to the setting in which they work as well as to the
continuing advancement of the hospital
7.4.4. The hospital will decide the type and level of training for staff in accordance with
National CPD guideline and then carry out and document a program for thistraining and
education.
7.4.5. The hospital will provide and maintain evidence of CPD for staff. A record shall be
maintained including dates, topics and participants
7.4.6. The hospital willperiodically tests staff knowledge, skill and attitude through
demonstration, mock events and other suitable methods. This testing is then documented
7.5. Medical Staff
7.5.1. There will be a policy of verifying qualifications, restrictions to practice and
Professional registration of all new employees and have a system in place to check
registration details. There will be documentation of staff licenses and trainingcertificates.
7.5.2. There will l be a policy that strengthens involvement of medical staff to take part in
the ongoing Continuing Medical Education (CME).
7.5.3. Any medical service will l be organized under the directorship of a senior licensed
professional stated under this standard
7.5.4. The medical staff will be responsible to the governing authority for medical care
and treatment provided in the hospital in accordance with the standards stipulated under
the hospital administration and shall:
(a) Participate in a Quality Assurance/Performance Improvement program to
determine the status of patient care and treatment;
(b) Abide by hospital and medical staff policies;

25 | P a g e
(c) Establish a disciplinary process for infraction of the policies
7.5.5. The medical staff will see that there is adequate documentation of medical events
by are view of discharged patients that will insure that medical records meet the required
standards of completeness, clinical pertinence and promptness or completion of following
discharge
7.5.6. The medical staff will actively participate in the study of hospital associated
infections and infection potentials and must promote preventive and corrective programs
designed to minimize their hazards

7.5.7. There will be regular medical staff meetings to review the clinical works of the
members and to complete medical staff administrative duties

7.5.8. The hospital will have physicians available on the premises during working hours.
The physician on call shall be duty bound to respond to calls.

7.5.9. Each patient will be under the care of a physician, regardless of whether the patient
is also under the care of an allied health professional practitioner authorized to practice.
7.6. Employee’s Health
7.6.1. The hospital will institute systems and processes that minimize employees’ risks,
protect employees and provide access to care when needed.
7.6.2. Its comprehensive Occupational Health and Safety (OHS) program will have the
following components:
(a) Staff dedicated to coordinate OHS activities
(b) Policies and Procedures that define components of the program
(c) Training for staff on program components

26 | P a g e
7.6.3. The hospital will have a designated individual qualified (occupational health and
safety officer) to coordinate and develop the hospital’s occupational health and safety
activities full-time.
7.6.4. The standards outlined below define the core elements of an OHS program and
specify minimum requirements needed to address OHS issues.
(a) The hospital will have an occupational health and safety policy and procedures in
place to identify, assess and address identified health and safety risks to staff and
prevent those risks that will potentially compromise their health and safety.
The hospital assesses and documents safety risks through formalized, structured
assessments that are done at regular intervals.
The assessments will be logged in some format—for example a register or report
The information gathered from the assessment shall be documented and reported
to the management (management committee and boards).
Interventions will be designed and implemented to address the risks that are
identified.
(b) The hospital will establish a means of communicating to staff their risks and

prevention measures or interventions.

(c) The hospital will regularly monitor its occupational health and safety activities tosses
how effective it has been in reducing risk.

(d) The hospital will have written policies and procedures to manage manual
handlingrisks.
(e) The hospital will have written policies and procedures which define how
harassment, physical violence and/or aggression against staff (from patients,
caregivers, other staff etc) are addressed.

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(f) The hospital will provide services to staff to minimize work-related stress.
(g) The hospital will ensure all employees have access to full pre-employment health
screening, covering Hep B (including other relevant vaccine), TB status and are declared
fit for their respective roles prior to employment. This shall include having:
Written instructions for health care workers to follow in notifying the hospitals
administration of infectious status.
Documentary evidence of vaccination records for all health care workers
employed, including Hep B status for all health care workers who perform
exposure-prone procedures. All staff are tested for and vaccinated against Hep B,
if there is no evidence of previous vaccination produced.
(h) The hospital ensures that all employees are provided with immunization services to
protect against infectious/communicable diseases.
(i) The hospital shall have a program in place to address injuries that could lead to
thetransmission of blood-borne viruses (needle stick and other injuries). Theprogram
shall include:
Measures to prevent needle stick and other injuries
Training on infection prevention techniques
Sharps risk reduction
Provision of post-exposure prophylaxis
Working hours and duty hours
7.6.5. The hospital will provide personal protective equipment (please refer to standards
for Infection Prevention and Control and Sanitation)
7.6.6. The hospital will provide the following facilities to employees
(a) Cafeteria
(b) Break room (equipped with a television and other recreational equipment)
(c) Green area

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(d) Library (equipped with books and computers with internet)(e) Adequate toilet and
shower facilities
7.7. Dress Code and Employee Identification Badge
For areas involving direct patient contact:
7.7.1. Footwear will be safe, supportive, clean, and non-noise producing.
7.7.2. No open toe shoes shall be worn.
7.7.3. Artificial nails are prohibited. Natural nails must be kept short and jewelry must be
kept to a minimum.
7.7.4. Hair must be worn in a way that prevents contamination and does not present a
safetyhazard
7.7.5. The dressing will not interfere in any way the service provision
7.7.6. The hospital will specify a particular style and/or color of uniform with
differentstyle/color code; separate for each human resource category, employee and
trainees
7.7.7. The employee will l keep the uniform neat, wrinkle free and in good repair
7.7.8. The hospital be responsible for providing employee identification badges
7.7.9. The identification badge will be worn at all times while at work and be easily
visible,with name, profession and department facing outward.

.8SeglenWajee General Hospital Organizational structure

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 CEO

7.9Management Biographies

The hospital’s management team is listed in the following table. Table 7.3

Titleof the Management

team Qualification Experience Current Working Place
More than 15
CEO Engineering years His own Consultancy
More than 15
VICE CEO Bsc Nurse years Owner of Zagol&Medha Clinic
More than 10 Senior Accountant in
ADMIN &FINANCE BA in Finance years CompensatoFactory
Dentist(Dental More than 7
MEDICAL DIRECTOR Doctor) years Instructor in Atlas University
BA in Human More than 8
HRM &PR Resource M Years HRM in Snaps Juice Factory

8.0 Financial Plan

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8.1 Underlying Assumptions

• The Hospital will have an average annual revenue growth rate of 27% per year.

• It will require 21 million birr of equity funds to develop the Hospital.

• The Hospital will settle most short term payables on a monthly basis.

8.2 Sources of Finance

SeglenWajee General Hospital

Sources of finance
Table 8.1
Financeing  %  
Equity Contributions  62  37,412,800
Management Investment    
     
     
Total Equity Financing  62  37,412,800
Bank and Lenders  35  21,390,743.00
Other Creditors  3  1,704,977.09.00
Total Debt Financing  38  23,095,720.00
Total Financing  100 60,508,520

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8 .2 Balance Sheet

SeglenWajee General Hospital

Beginning Balance Sheet
For the Year 2014 Table8.2
Asset  
Cash 2,625,000
Account Receivable 150,000
Amortized Development cost 675,000
Medical and Other Supplies 1,560,000
Medical Inventories 2,185,720
Total Current Asset 7,195,720
Building and Civil Work 37,412,800
Machinery and Equipment 11300000
Office Equipment and Furniture 2100000
Motor Vehicle 2500000
Total Fixed Asst 53,312,799.91
Total Asset 60,508,520.00
 
Liability and Capital  
Account Payable 1,704,977.09
21,390,743.0
Long Term Liability 0
Total Liability 23,095,720.09
 
Net Worth 37,412,799.91
Total Liability and Equity 60,508,520.00

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8.3 Income Statement

SeglenWajee General Hospital

Proforma income statement
for five years Table8.3
  Year 1 Year 2 Year 3 Year 4 Year 5 Total
28,800,00 34,217,28 39,520, 47,305,6 50,4 200,315,9
Sales 0 0 958 64 72,000 03
Less- Cost of 6,755,77 5,664,45 7,363, 9,234,1 11, 40,653,3
sales 5 8 794 99 635,089 14
             
28,552,82 32,157,1 38,071,46 38,83 159,662,58
Gross Profit 22,044,225 3 64 6 6,911 9
             
Gross Profit 0. 0. 0. 0.
Margin 77 83 0.81 80 0.77 80
             
Less-Fixed Cost            
6,300,00 6,068,75 5,895, 5,765,2 5,6 29,695,0
Adminn/Selling 5 5 357 39 65,680 36
             
Operating income 15,744,2 22,484,0 26,261 32,306, 33, 129,967,
Before Tax 20 68 ,807 227 171,231 553
             
4,723,26 6,745,22 7,878, 9,691,8 9, 38,990,2
Tax 30% 6 0 542 68 951,369 66
             
11,020,9 15,738,8 18,383 22,614, 23, 90,977,
Income After Tax 54 47 ,265 359 219,862 287
             
1,818,21 1,454,57 1,090, 727,2 5,454,6
Less-InterstExp 3 1 928 85 363,643 39
             
             
9,202,7 14,284,2 17,292 21,887, 22, 85,522,
Net Income 41 77 ,337 073 856,219 647

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8.4Cash Flows

SeglenWajee General Hospital

Cash Flows
For the 3 Years ending table8.4
Years 1st Year 2nd Year 3rd Year
15,738,847.0
Cash from operation 11,020,954.00 0 18383265
Cash from Receivable      
15,738,847.0
Operatin cash inflows 11,020,954.00 0 18383265
Other Cash Inflows      
Equity investment      
Increased Borrowings      
Sales of Business Asset      
300,000.0
A/P Increases   0  
300,000.0
Total Other Cash Inflows   0  
     
16,038,847.0 18,38
Total Cash Inflow 11,020,954.00 0 3,265.00
     
Cash Outflows      
Repayment of principal 4,278,148.00 4278148 4278148
A/P Decreases 504,977.09   600,000
A/R Increases 377,864 629,186  
Asset Purchases     10,000,000
Withdraw      
Total Cash Out Flow 5,160,989 4,907,334 14,878,148
     
3,50
Net Cash Flow 5,859,964 11,131,513 5,117
Cash Balance 10,195,116 18,716,309 25,628,000

8.5. FINANCIAL EVALUATION

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8.5.1. Profitability

Based on the projected profit and loss statement, the project will generate a profit
throughout its operation life. Annual net profit after tax will grow from Birr9.2 million to
Birr 85.5 million during the five years of the project. Moreover, at the end of the project
life the accumulated cash flow amounts to Birr after returning its initial investment at
present value is 4.6 million.
8.5.2. Ratios
In financial analysis financial ratios and efficiency ratios are used as an index or yardstick
for evaluating the financial position of a firm. It is also an indicator for the strength and
weakness of the firm or a project. Using the year-end balance sheet figures and other
relevant data, the most important ratios such as return on sales which is computed by
dividing net income by revenue, return on assets (operating income divided by assets),
return on equity ( net profit divided by equity) and return on total investment ( net profit
plus interest divided by total investment) has been carried out over the period of the
project life and all the results are found to be satisfactory. See the table below
Table8.5.1
Business Ratios
-Yearly      
Year 1 2 3
Sales
Return on Investment 18% 26% 30%
Return on Asset 17% 21% 21%
Financials
Profit Margin/ROS 31% 41% 43%
Asset to Liabilities 3.5 5.2 9.2
Equity to Liabilities 2.55 4.25 8.27
Return on Equity 19% 23% 22%
Liquidity
Acid Test 8.94 13.25 14.72
Cash to Assets 0.16 0.25 0.12

8.5.3. Break-even Analysis

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The break-even analysis establishes a relationship between operation costs and revenues.
It indicates the level at which costs and revenue are in equilibrium. To this end, the
break-even point of the project including cost of finance when it starts to operate at full
capacity (year 5) is estimated by using income statement projection.

BEyear1=Fixed Cost
Price – Variable Cost/Patient
= 6,300,005
800-187.66
=10,294 Patient at minimum average Charge 800birr

8.5.4. Payback Period

The payback period, also called pay – off period is defined as the period required
recovering the original investment outlay through the accumulated net cash flows earned
by the project. Accordingly, based on the projected cash flow it is estimated that the
project’s initial investment will be fully recovered within
5 years. The following table also shows that the bank long term loan repayment plan but
this may be modified after an agreement is signed. See the table on the next page.

SeglenWajee General Hospital

Loan Repayment plan
For the Coming 5 Years
Table 8.5.2
Years Payment on Interst Expense Payment Loan Balance

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 principal
21,390,7
0       43.00
1st 1,818,2 6,096,361. 17,112,5
Year 4,278,148.60 13.16 76 94.40
2ndYe 1,454,5 5,732,719. 12,834,4
ar 4,278,148.60 70.52 12 45.80
3rdYea 1,090,9 5,369,076. 8,556,2
r 4,278,148.60 27.89 49 97.20
4thYea 727,2 5,005,433. 4,278,1
r 4,278,148.60 85.26 86 48.60
5thYea 363,6 4,641,791.
r 4,278,148.60 42.63 23 0
21,390,743.0 5,454, 26,845,38
Total 0 639.47 2.47  

8.5.5. Internal Rate of Return

The internal rate of return (IRR) is the annualized effective compounded return rate that
can be earned on the invested capital, i.e., the yield on the investment. Put another way,
the internal rate of return for an investment is the discount rate that makes the net present
value of the investment's income stream total to zero. It is an indicator of the efficiency or
quality of an investment.
A project is a good investment proposition if its IRR is greater than the rate of return that
could be earned by alternate investments or putting the money in a bank account.
Accordingly, the IRR of this project is computed to be 11%indicating the viability of the
project.

SeglenWajee General Hospital

Netpresent value at at 11%IRR
for five years
Table 8.5.3

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 Years CFAT At IRR 11% NPV
9,202,74
1st Year 0.84 0.901 8,291,669.50
14,284,27
2nd Year 6.73 0.812 11,598,832.70
17,292,33
3st Year 7.29 0.731 12,640,698.56
21,887,07
4th Year 3.40 0.659 14,423,581.37
22,856,21
5thYear 9.16 0.593 13,553,737.96
85,522,64
Total 7.42   60,508,520.09

Investment Decision Crieterion

Net present value discounted by 11% IRR= 60,508,520.09

Less- Intial Investment 60,508,520.09
Net present value is = 0
The discounting rate K=8.5%
Its profitability index=Total NPV/Intial Investment=1
The IRR is greater than K and the profitability index is one .Therefore, the investment is acceptable.

8.5.6. Net Present Value

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Net present value (NPV) is defined as the total present (discounted) value of a time series
of cash flows. NPV aggregates cash flows that occur during different period’sovertime
during the life of a project in to a common measuring unit i.e. present value. It is standard
method for using the time value of money to appraise long-term projects. NPVis an
indicator of how much value an investment or project adds to the capital invested. In
principal a project is accepted if the NPV is non-negative. Accordingly, the net present
value of the project at 8.5% discount rate is found to be Birr4.6 million which is
acceptable.

SeglenWajee General Hospital

Present Value at discounting at the rate(k) of 8.5%
for five years
Table 8.5.4

Years CFATI Discounting[.085%] NPV

0 (60,508,520.09) 1 (60,508,520.09)

1 9,202,740.84 1.0850 8,481,788.79

2 14,284,276.73 1.1772 12,134,112.07

3 17,292,337.29 1.2773 13,538,195.64

4 21,887,073.40 1.3859 15,792,678.69

5 22,856,219.16 1.5037 15,199,986.14

Total 85,522,647.42

NPV.085 4,638,241.25
Investment Decision Criteria
The investment decision value shows that NPV is 4,638,241.25 which is greater
than zero . So, this project is acceptable.
9.0 Summries and Conclusion

SeglenWajee General Hospital will be one of the private sector health investments at

39 | P a g e
Holetatown. When it launches its operation, it will increase the productivity of the people
through alleviating their health care problems.

The venture will enhance the health care service coverage in the target market, and
generate 38 million birr Tax Revenue for the government within five years .

Furthermore, it will create job opportunity for 83 people and return its initial investment in
the years in to consider.

In general, it is a feasible project having positive present value and will pay 5.4 million birr
interest to financial institution.

About the market researchThis research is based on in-depth interviews and

discussions with 50health professionals from across western Oromiya zone and Addis
Ababa. The individuals interviewed for this business plan are those with regional and
nationall reputations in health service delivery, health policy and management. Insights

40 | P a g e
 from these interviews were augmented with existing published literature from leading
academics and practical examples of Ethiopia.

Some of the Professionals interviwedare Ato Lemma Gutema ( Oromiya Health Office
Planning Department Head),AtoGetachewEtecha (Western Shewa Zone Admin),AtoAmare
W/yes (ZonalFinance&Economic),AtoAbebeTadesse(Western Shewa Health
Officer),AtoWondimuAlemayhu (Ambo Hospital Manager),Nurse Olma Erna(Genchi
Health Office), AtoDessaleHundessa( Addis Alem Health Officer), Nurse Jarso (Muger
Health Officer ),Sister Hanna (Enchene Health Office Head), DrDawit (Health Service
Provider and Instructor in Addis Ababa),…etc.

Appendix
------ Sample Proforma invoice

------Price List

----Building map

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References
1, General Hospital Investment Requirment; prepared by Ethiopian Embacy

www.invest in Ethiopia .com

2,Final Draft Health Facility Standard for General Hospital;preparedbyEthiopian Food, Medicine
& Healthcare Administration and Control Authority (FMHACA)

3,HealthAbstruct 2011/2012; www.csa.gov.et

4,Sample Hospital Business Plan New York based corporation. The Company was founded in
2008 by John Doe.

5,Other relevant data is taken from the following web sites:

www.ministry of health in Ethiopia.com

www.ethiomedic.com

www.private hospital in ethiopia.com

6, Data collected from Oromiya Health office planning Department,AmboHospital,allWeredas

from Ambo to Addis Ababa and Addis Ababa Health Office

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End !

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Medical Equipment/Devices
Registration and Documentation Requirements for Import
Summary
This report presents the registration requirement and the standard procedure to import
medical devices into India. It provides an overview of the Indian Government’s plan to
regulate this industry. The report also contains information on the documentation
requirements for importing into India.
Background
For the purchase of medical equipment/devices the government authorizes the
government owned and private hospitals to issue global tenders. These tenders are
permitted even if a product is manufactured domestically. Most of the government
tenders follow two parts: technical bid and commercial bid. All the government tenders
are time consuming as public hospitals often have extensive bureaucratic structures and
decisions are sometimes hard to reach. Generally the government decides on the lowest
bidder. The private hospitals evaluate the products on the basis of the technology, cost
and price. Decision-making is faster in the private hospitals.
For U.S. companies maintaining one or more technically trained Indian distributor/agent
is the best way to enter the large Indian market. Agents must offer service support for all
medical equipment, including for public relations. Indian end users consider service
support as an important factor in their equipment purchase decisions. Agents maintain
close contact with the government officials, decision makers and the purchase department
of the private hospitals. They obtain advance information regarding potential business,
and handle the trade promotion activities. The agents keep the foreign supplier informed
of the local market opportunities, conditions and competition, and finally negotiate sales
opportunities.
Customs duty is levied on the imported medical devices. The duty levied depends on the
product classification and the end user. The products that are classified by the Ministry
of Health as “life saving medical equipment” have reduced duty applicable on them.
Also, the government hospitals/institutions are permitted to import equipment/devices at
a reduced duty. The government hospitals can import at a lower duty rate only if the
product is imported directly from the manufacturer. Hence, though the distributor
facilitates the sale and follows-ups with the government hospitals the invoicing and
payment is made directly to the foreign company. This is applicable only for the

46 | P a g e
government institutions and not the private institutions.
Regulation
Presently, the Indian market for medical devices is largely unregulated. Medical devices
are freely imported into India. The purchaser (whether it is a government hospital, a
private hospital or a doctor) evaluates the quality of the product being purchased.
Normally, the FDA and CE approved products are preferred because of their better
quality and performance. But, India being a price sensitive market, low priced medical
devices find a big market.
To ensure the quality of healthcare service, the Government of India is in the process of
developing regulations for medical devices. According to industry contacts and the
Ministry of Health officials, a notification is expected that would bring a select group of
medical devices under the regulatory framework.
The authority regulating medical devices will be the Central Drug Standard Control
Organization (CDSCO) in the Ministry of Health. The website (http://www.cdsco.nic.in)
The CDSCO is the authority, which lays down rules, standards and approves import and
manufacturing of drugs, diagnostics, devices, and cosmetics. Currently, CDSCO’s
functions are to establish the standards and regulations for drugs, blood and blood
products, intravenous fluids, and vaccines. With added responsibility of regulating the
medical devices industry, CDSCO will be the approving authority for import,
manufacture and sale of medical devices in India.
The regulatory procedure will be clear only after the government notifies the regulations
and the CDSCO provides the import guidelines. But as we understand it, subsequent to
the government’s notification, foreign and India companies will have to apply for
permission to import, and sell medical devices in India. Both the manufacturer and the
importer will have to register with CDSCO. The Indian importer will have to obtain a
“no objection” certificate to import and sell in India. However, it is expected that for
products that are approved by the FDA and/or CE, the registration process to obtain an
approval to sell will be a trouble-free. To register a new medical device or non FDA/CE
approved devices in India, an application will have to be submitted to the regulatory
authority along with documents such as details of the regulatory status in other countries;
restrictions of use in approved countries; a free sale certificate from the country of origin.
The current CDSCO application forms for approval are available on the web link
http://cdsco.nic.in/html/importdrugs.htm.
Import procedure
The standard operating procedure for importing medical equipment/devices into India
consists of the following steps.
The U.S. exporter provides the proforma invoice stating the offer price, which is
inclusive of the insurance and freight cost. On reaching an agreement on the mode of
payment, which can be a letter of credit or wire transfer of funds; the Indian importer
places the order for the product.
The exporter either ships the consignment or uses the airfreight. At the port of entry the

importer or its customs clearing agent is responsible

47 | P a g e
.

7.8 General Assumptions

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49 | P a g e
7.9 Business Ratios

Expanded Profit and Loss Statements

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51 | P a g e
52 | P a g e
53 | P a g e
Expanded Cash Flow Analysis

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55 | P a g e
56 | P a g e
Testimonials  Complete Business Plans  Raise Capital  FAQ  Articl

57 | P a g e
 Africa Medical College
Fianl Exam for Introduction to Marketing Management
Extension Program –Degree Pharmacy 2004
Name _________________________________Section ______________Id No____________

This Exam Paper has four types of question such as Matching ,True orFalse, Choose the best answers and
work out. So, you are required to give the correct answer on the space provided.

I Matching
A B

_____1, ChannelA, Manufacturer---Retailer------Consumer

_____2,Agent or BrokerB, Manudfacturer Sales Branch

_____3,Channel FunctionC,Public Presentation and Impersonal

_____4,Direct ChannelD, Legal Authority to act on behalf of the Manufacturer

_____5, Sales PromotionE, Communication and Incentives

_____6,One -Level ChannelF,Use of mail,telephone and Fax

______7,Personal SellingG, Logistics ,Transactional and Facilitation

______8,Zero-LevelH, Giving Service to the society

______9,PublicityI, Manufactorer----Agent------ Retailer---Customer

______10,AdvertizingJ, External, Contractual, and Operational

K,Manufacturer ------Consumer

L, Personal Confrontation, Cultivation and Respons

II, Say True or False

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___________11, Customer Service is accountability plus delivery.

____________12,Customer is ALWAYS right .

__________ 13, How You look ? and Your Personal grooming has its own impact on
your acceptance to sale the product.

_____________14, Fresh Flower is expected product in the Hotel Service.

_____________15, Marketers can create needs to satisfy the human wants.

_____________16,To be a good Marketer, it is Your inborn behavior rather than learning

behavior.

_____________17, Through eye contact you can read your customer.

_____________18,To be a good Sales Person , you always should adjust your approach
and understand your customer.

_____________19,Promotion is not necessary for Pharmaceutical Product .

_____________20, Pricing is the only marketing mix that can generate revenue.

III,Choose the best answer

_____________21,Which one isnot a paroduct ?

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A, Organization C, Information E,None

B, Service D, Experiance

__________22, Marketing is…………………………..

A, Anticipating demand D, All of the above

B, Management of demand E, None of the above

C, Satisfaction of demand

__________23,______________ are intangible,inseparable,variable and Pershable.

A, Service D, All of the above E, None of the above

B, Non- durable Good C, Durable Goods

__________24, Steples, Impulse good and Emergence goods are……………………..

A, Convenience GoodD, Unsought Goods

B, Shopping Goods E, None

C, Specialty Goods

___________25, Which one of the the following statement is false ?

A, In the introduction stage the marketing strategy is focusing on promotion and

pricing.

B, The product development stage ends when product is commercialized.

C, In the declining stage no need of applying marketing strategy.

D, In the maturity stage product modification is necessary.

E, In the growth stage there is new entrants.

___________26,___________ has a promotional and protection value .

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A, Branding C, Labeling E, None of the above

B, Packaging D, all of the above

__________27, Which one of the following marketing strategy is applicable when large
number of people know the product having low income level.

A, Rapid Skimming Strategy C, Rapid Penetration Strategy E, None

B, Slow Skimming Strategy D, Slow Penetrating Strategy

__________28,_____________ is a product mix refers to how many different product lines

the company carries.

A, Width of a product C, Depth of the product E, None of the above

B, Length of the productD, All of the above

__________29, Which one of the following is the correct chronology?

A, Idea generating ----- Idea screening ---- Concept development

B, Idea generating -----Business analysis-----Commercialization

C, Idea generating------Concept development-----Market Strategy

D, Idea screening-----Market testing-----Commercialization

E,None

_________30, Which one is not sales promotion ?

A, Coupons C, ContestE, None

B, Premium D, Trial offer of sample

IV. Work out

Given

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 Fixed Cost 300,000

Total Unit Sales 20,0000

Variable Cost 5 birr

Desired Profit 20%

Calculate

1, Calculate the mark up price

2, Calculate the breakeven point

3, The target profit is 30,000 birr ,find the target unit sales .

Course Outline

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Course Title- Introduction to Economics

Credit hour –3

Instructor’s Name –TewodrosAyalew

Chapter one- Fundamentals of Economics

Major Contents of the chapter

_ Definition and Nature of Economics

_ Scarcity and Choice: Production possibility frontier, opportunity cost and

efficiency

_ Economic organization : Basic economic questions and the alternative

economic system.

- Decision making units and the circular flow of economic units

Chapter Two- Basic elements of Demand and Supply

Major Contents of Chapter

_Theory of Demand

-Demand Schedule, curve and function

- Individual and market demand

_Determinants of Demand

_ Theory of Supply

-Supply Schedule, curve and function

- Individual and market Supply

_Determinants of Supply

_ Market Equilibrium

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 _ Effects of changes in demand and supply on equilibrium price and
quantity.

Chapter Three- Elasticity of Demand and Supply

Major Content s of the Chapter

_ Price Elasticity of Demand

_Definition and measurement

_ Linear Demand Curve and Price elasticity of Demand

_Price elasticity of Demand and Total Revenue

_Determinants ofPrice elasticity ofDemand

_Incomeelasticity of Demand

_Cross-Price Elasticity of Demand

_ Price Elasticity of Supply

-Determinants of Supply

Chapter Four-The theory of Consumer Behavior

Contents of Chapter

_ The meaning of Utility

-Theory of Utility

-The cardinal theory approach

- The law of Diminishing marginal utility

-Maximizing Total Utility

_ The ordinal theory ( Indifference set)

Chapter Five-The theory of Production

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Major Contents of the Chapter

_ Production, input and production period

_Production Function

_Return on Scale

Chapter Six- Fundamental Concepts of Macroeconomic

Contents of the Chapter

-Fundamental Concerns of Macroeconomics

-Measurement of National Income

- Problems of Macroeconomics

-Business Cycle , Unemployment ,Inflation……..

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II, Say True or False

___________11, Customer Service is accountability plus delivery.

____________12,Customer is ALWAYS right .

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__________ 13, How You look ? and Your Personal grooming has its own impact on your
acceptance to sale the product.

_____________14, Fresh Flower is expected product in the Hotel Service.

_____________15, Marketers can create needs to satisfy the human wants.

_____________16,To be a good Marketer, it is

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