1

Team 2
Sara Bibeau
Laurence Hebert-vinet
Teresa Whitaker
Kara Storey
ESG600H
INTB 3094
Raj Mehta
Constantine Polychroniou
Jocelyn Desroches
Tobi Rodrigue
Fall 2012
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TABLE OF CONTENTS
Business Overview
Description of Company.Page 3
Demographic, Economic, Social and Cultural Factors...Page 3
Principal Actors...Page 4
Nature and Tendencies of the Industry....Page 4
Market Segment and Tendencies.....Page 5
Market Segment Choice...Page 6
Market Acceptance...Page 6
Product..Page 7
Distribution and Price...Page 9
Risk Factor....Page 10
Competition.,.Page 10
Competitive Advantages...Page 11
Sales and Marketing Plan
Clients...Page 12
Suppliers.......Page 12
Publicity and Promotion...Page 13
Distribution and Price...Page 14
Customer service policy....Page 15
Operating plan.......Page 15
Human Resources Plan..........Page 16
Action Plan....Page 18
Financial plan............Page 20
Executive summary...Page 20
Bibliography..Page 22
3
Business Overview

Description of the company

I-On is a company that specializes in the conception and production of double parabolic
solar cookers at a low price. Our product is better and cheaper than similar ones that are currently
on the market. I-Ons mission is to empower the Ethiopian women through solar cooking,
providing a source of revenue for local workers and reducing energy costs for the Ethiopian
households. Our vision is to be the leaders of the solar cooking technology in Western Africa
within the next five years.

Demographic, Economic, Social and Cultural Factors

The company decided to sell the Abasala solar cooker in Ethiopia mostly because it is a
country with one of the highest food borne illnesses prevalence
1
. This factor is due to the
expensive cost of fuel and the absence of resources such as wood. Ethiopia is known for its
increasing land degradation
2
that makes young girls and women to walk long distances through
dangerous areas to gather wood for their familys cooking fire
3
. Besides food borne illnesses due
to uncooked food, the families using fire for cooking are in constant contact with the smoke,
which can be very harmful for their health
4
.
During the conception and development of the product, we also had to consider the
demographic and economic factors. Ethiopia has a density of 82.95 people per square kilometer,
which is very high
5
, and a yearly income average of 500 CAD$
6
. These factors influenced our
solar cooker in the way that it had to be small for the dense areas without changing its

1
Ethiopia Major Infectious Diseases. IndexMundi. 26 July 2012.
2
YESUF, M. Economic Assessment of Cost of Land Degradation in Ethiopia: Past Experiences and the
Way Forward. Ethiopian Development Research Institute. 12 August 2010.
3
Too Much to Bear. Geographical. June 2011.
4
UNICEF. In Ethiopia, the expansion of rural health services is key to reducing child mortality.
WESTERBEEK, Sacha. 22 June 2012.
5
Population Density in Ethiopia. TradingEconomics. 2012.
6
UNICEF. Statistics. 24 Feb. 2003.
4
effectiveness, and had to be built with cheap materials to be able to sell at an affordable price.
An important cultural factor also had to be considered during the conception of our product
design: the solar cooker had to be able to cook the traditional injera bread that most Ethiopians
eat. The traditional bread has to be cooked at a very high temperature concentrated in one single
focal point and only the parabolic solar cookers are able to fulfill this requirement
7
.
A social fact that we took into account for our operations is the lack of female
empowerment in Ethiopia
8
. This is the main reason we decided to only hire women for the
production of the solar cookers as well as for their distribution through a group of tradeswomen.
Principal Actors

For the production of the Abasala solar cookers, we will be able to count on the Addis
Home Depot located in the capital of Addis Ababa where our operations will be based. The store
will be able to provide us with the different equipment and raw materials that will be needed.
As soon as the production starts, we will be able to sell and distribute parts of our
production through the help of our distributors: the independent tradeswomen who will be
working for us on a commission-based salary.
The customers we are trying to reach are living in rural areas. This is why we chose to
distribute part of our production through the tradeswomen who live in those areas.
Nature and Tendencies of the Industry

Our product will be part of the cooking industry, most precisely the appliances and
techniques of cooking sector. This industry is composed of products such as ovens, barbecues,
solar cookers and fuel wood to cook amongst others.
The Ethiopian rural population is very poor and basically cannot afford any type of
electric cooking appliances because they are too expensive and mostly because the electric power

7
GALLAGHER, Alan C. A Solar Fryer. Joint Institute for Laboratory Astrophysics of Colorado
University. 20 Dec. 2010.
8
THE WORLD BANK GROUP. Women Empowering Women. 2001.
5
does not reach rural villages
9
. The rural population, then, mostly uses fuel or wood to light a fire
in order to cook.

Market Segment and Tendencies

There were originally four different segments in Ethiopia that we had to consider: the
people living in urban areas, the nomads living in the rural areas of the desert climate zones
(regions of Somali and Afar), the sedentary people living in the rural areas of the desert climate
zones (regions of Somali and Afar) and the sedentary people living in the rural areas of the
temperate climate zone
10
. We chose this last segment as our target market and we focused
particularly to the Oromia province. The province was showing some advantages for our
company: there are about 200 sunny days in a year
11
and the capital Addis Ababa is located in
this province.
The company also had to consider the acceptance of the solar cookers in Africa. On this
note, the organization GTZ did a study on the acceptance of solar cookers that partly took place
in Ethiopia. The study showed that the families were using their solar cookers as much as their
other cooking techniques (such as fire), which demonstrates a very high acceptance
12
. We also
discovered that solar cookers can be quite popular in Ethiopia as a tradeswoman sold her 72 solar
cookers in only two days
13
.

9
ENGIDA, Ermias, TSEHAYE, Eyasu & TAMRU, Seneshaw. Does Electricity Supply Strategy Matter?
Shortage and Investment: Reflections based on CGE Analysis. Ethiopian Development Research
Institute. Dec. 2011.
10
See climate map in Appendix C
11
Solar Cookers World Network. Wikia. 2012.
12
BERGLER, Hanna, BIERMANN, Eberhard, GRUPP, Michael, OWEN-JONES, Maria & PALMER,
Richard. Moving Ahead with Solar Cookers: Acceptance and Introduction to the Market. German
Technical Cooperation (GTZ). March 1999.
13
SOL SOLIDARI. Big success of the sale of subsidized solar ovens in Lalibela (Ethiopia). 12 May
2011.
6
Market Segment Choice
Typically people in rural Ethiopia use wood-burning stoves and campfires to cook food.
Since fuelwood is both expensive and not environmentally sustainable, this leads to problems.
Land degradation has occurred widely in Ethiopia as a result of trees being cut down for
fuelwood. Wood is becoming scarcer, and women often have to walk miles every day in
dangerous areas to find wood to cook with. When this wood is too expensive to purchase or
unable to be located, people often go without cooking their food at all. This can lead to health
problems from the consumption of unsanitary water and raw foods (9). We chose to target
Ethiopia for our market because Ethiopia has one of the highest rates of food-borne illness in the
world. It is warm, sunny, and dry, which is a perfect climate for solar cooking (1,14), it has
widespread land degradation, and it has few opportunities for the empowerment of women in
society. Our product is well-designed for this target market: culturally, economically, and
socially. It is able to achieve higher temperatures than many types of solar cookers, which allows
customers to bake the local staple, known as injera bread (1). It is cheap, since it is locally made
from easily obtainable materials. It provides jobs in manufacturing, since it is an easy, yet labor
intensive process, and we can sell our product through local agents/groups of tradeswomen, so
that we are integrated with the culture and support local businesses.

Market Acceptance
A research study by GTZ on the acceptance of solar cookers in Africa and Ethiopia
showed that families given solar cookers used them as much as the fuelwood stoves and other
methods of food preparation, indicating a high acceptance of solar cooking. In fact, one
tradeswoman received 72 solar cookers in her shop, which sold out in 2 days (17).


7

Product

The Abasala solar cooker has a unique design that allows solar cooking to be done
cheaply and effectively. The cooker frame is made out of cob, a type of unbaked earthen masonry
made of soil, sand, clay, straw, and water. Cob is an ideal material on several levels: durability of
material, ease of creation, cost of creation, environmental impact, and community impact (4,5,6).
Cob is a durable material. It has a high compressive and tensile strength, high insulation, and
breathability. Since it is an unbaked natural material, it requires no machinery, framework,
artificial additives, fossil fuels, or electricity to make. Cob is highly sculptable, safe to construct,
and locally available. In addition, the cob will be locally made to reduce shipping costs, and is
completely environmentally friendly. The making of cob is a time-intensive process, but one that
requires little training, so it can provide steady jobs for people who may not be qualified for other
forms of work in the community, as well as those who are traditionally not included in
construction work, such as women. Unfortunately, cob is a very dense and heavy material, and is
not waterproof. However, as long as the cob is not allowed to soak, it is usually able to dry itself
pretty readily (4,5,6).
To cover the cob frame, we are using an earthen plaster made of the same materials as
cob, but with a finely ground texture. We are also adding linseed oil to the mix to give it
additional sculptability. Once the linseed oil dries with the plaster, it will provide the cooker with
extra water resistance. Since the earthen plaster has good breathability, it will allow the cob
underneath to breath also (4,5).
The shape of the solar cooker is an important feature. The inside of the frame will be
shaped like a compound parabola, in which all of the parabolas share the same focal point
(12,13). Like a single parabolic shape (3), this will allow all of the sunlight that reflects off of the
cookers interior to reflect to the same focal point where the cooking pot will be placed, which
will achieve high enough temperatures to cook with (12,13). But the compound parabolic shape
also tolerates a wider angle of sun position, which eliminates the need to track the suna major
downside of parabolic cookers (12). This allows the cooker to be left unattended for longer
periods of time, freeing up the women that use these cookers to pursue other important activities.
8
The reflective material is an aluminum paint, which is made of a highly emissive material
to reflect most of the sunlight to the focal point (2,15,16). The pots used for cooking will be
painted with black paint, a highly emissive material, to absorb most of the sunlight that hits it
(15,16). To keep the cooker from collecting water and small debris in the bottom, we added a
drainage hole.
For optimal performance, the cooker will have a inside radius of 1.5 ft, a parabolic depth
of 1.1 ft and a inner surface area of 10 sq ft (0.929 sq m) (11). Since each square meter of
reflective surface gives approximately 1000 W of power (11), our cooker should generate an
average of 929 W on an average day in the climate of Ethiopia (10,14,16), which is more than the
suggested minimum of 800 W for parabolic solar cookers (11). The cooker itself should be no
thinner than an inch in all directions. It will be thicker on the bottom, since the bottom will be flat
for better stability. If needed, the cooker can be propped up with a simple wedge in order to face
the sun most optimally.
Additional accessories can be sold with the cooker. Consumers can purchase a supporting
bar and hook to hang the pot at the focal point. They can also purchase a tarp to cover the cooker
when not in use, to minimize weathering and prevent potential fire hazards (7). Probably the most
important and expensive accessory is the WAPI, or water pasteurization indicator. This device is
a simple weighted plastic tube filled with myverol, a kind of soybean fat. Myverol melts at about
70 degrees Celsius, which is water pasteurization temperature, making it easy to see when the
water you are pasteurizing with the cooker is safe to drink (8,9). This will allow people to use
less time to pasteurize water, since they wont have to wait for water to reach boiling
temperatures (9). It also eliminates the taste that boiled water has, which is often a deterrent
keeping people from pasteurizing unsafe water before consumption (8).
9

We created a rough 3-dimensional prototype to test our design efficacy. It was a
completely functional, yet scaled down model of the solar cooker using aluminum foil and
wheatpaste instead of aluminized paint and without the earthen plaster coating. To test efficacy,
we placed a bright orange object at the focal point of the cooker and photographed it from various
angles. In each photo, the amount of orange seen reflected in the aluminum foil indicated how
much of the reflective surface was reflecting light to that focal point (13). The photos showed a
high efficacy of reflection, indicating an effective design.

Distribution and Price

Distribution
Our company will have two distribution systems: we will sell our product directly at the
plant and we will sell it through a group of independent tradeswomen. The tradeswomen will be
paid on a commission-base. The retail price of the Abasala solar cooker will be of 17.46 CAD$
and the commissions will earn them approximately 11.45% (2 CAD$ per item). All the details of
10
the price component and how we came up to a retail price of 17,46$ can be found in the appendix
D Estimated Average Cost per Unit.
Price
Asforoursellingprice,wedecidedthat17.46CAD$wouldbereasonablebecause
wewouldhavethemostaffordablesolarcookeronthemarket
14
aswellasallowingusto
makeasmallprofit.Havingourflatproductioncostat14.46CAD$,therewouldbea3CAD$
profitoneachitemsold.Yet,asexplainedearlier,mostofthesaleswillbecarriedoutbythe
tradeswomenonacommission-basedsalarythatwillearnthem2CAD$oneachitemsold.
Thismeansthatwewouldhaveaprofitof1CAD$oneachitemsold.

Risk Factor

There are two main risks that we have to consider: the consumers habits and the ability of
our salespeople. The clients that we are seeking have been using wood and fire to cook for as
long as they can remember. Even though the acceptance of the solar cookers is high, there might
be a chance that their habit of using wood is too strong. It was also noted in an interview with an
Ethiopian woman that selling a product in Ethiopia needs very good salespeople
15
, which is why
we cannot afford to hire salespeople who do not have the ability to sell.
Competition
16


As of now, in Ethiopia, there are three main companies producing all different kinds of
solar cookers: Solar Clutch, EG-Solar and ET-Solar Tech. The first one, Solar Clutch, produces
very simple and rudimentary solar cookers and promotes them in refugee camps with the help of

14
SeetheCompetitiveComparativeAnalysisinAppendixn
15
See full interview in Appendix H
16
See Competitive Comparative Analysis in Appendix A

11
local agencies
17
. Their solar cooker is very cheap and easy to produce, but is not a durable
product.
The second company, EG-Solar, is actually an NGO that should definitely be considered
as one of our competitors since it focuses its sales in the rural areas of many African countries
including Ethiopia. EG-Solar offers a fast and wide (1.5 meter of diameter) single parabolic solar
cooker. The components of their solar cookers are manufactured in Germany and then shipped to
Ethiopia where their users assemble them. The fact that their product is manufactured in
Germany and that it has to be shipped makes it very expensive. The company also offers
workshops in the Ethiopian capital
18
.
The last company, ET-Solar Tech, was created and is still based in Ethiopia. This
company produces different models of solar cookers: the single parabolic solar cooker, the box
cooker and a more rudimentary solar cooker. ET-Solar Tech provides those solar cookers to
different Ethiopian NGOs to distribute them in the rural areas. Some of those NGOs, as Sol
Solidari, distribute the solar cookers for free at first to gain exposure and then sell them at a cheap
price with the help of a local tradesperson
19
.
Competitive Advantages
20


Even though there are already three competitors acting in Ethiopia, our product has some
competitive advantages that surpass our competitors products. The double parabola solar cooker
that we are producing is cheaper and as effective than the usual single parabolic cookers, in fact it
is cheaper than all solar cookers available on the Ethiopian market. This new model is also more
durable than cardboard panel cookers and does not require tracking the sun, which means that
this solar cooker does not need as much maintenance as the other existing ones. We will also
offer two services with our product: some teaching workshops on the use of our cookers as well
as microcredit.

17
Solar Cookers World Network. Wikia. 2012.
18
Solar Cookers World Network. Wikia. 2012.
19
Ibid.
20
See SWOT Analysis in Appendix B
12
Sales and Marketing Plan
Clients

Even though our operations will be based in the capital Addis Ababa for strategic
advantages that will later be explained, the consumers that we are trying to reach are mostly
living in rural areas. The company, then, decided to focus the distribution of the Abasala solar
cooker to the five regions sharing borders with Addis Ababa: North Shewa, West Shewa,
Southwest Shewa, East Shewa and the Special Zone. In total, there are 1,445,318 households
including 1,231,776 rural households which is our potential market size
21
.
The five regions targeted as our potential market are located in the province of Oromia,
which is a sunny and temperate climate zone area. We are mainly targeting the sedentary people
living in those rural areas that have the needs in term of solar cooker to be more reliable than
wood and that does not require much maintenance (doesnt need wood gathering). The
population living in those areas speaks the official language of Ethiopia, the Amharic, is mostly
Christian (61%) and has a yearly income of about 500 CAD$
22
. The life expectancy of women is
of 59 years old and the median age is 17
23
. Knowing that over two third of the women have their
first child in their twenties
24
, we want to target the sales of our solar cooker to the women aged
between twenty and forty years old that are starting a family or already have one. These statistics
represent a profile that we are expecting to see in our customers and that will help us to reach
them.
Suppliers

Oneofthemostimportantmaterialsintheconceptionofourproductisthealuminum.
SinceEthiopiadoesnotproduceanyaluminumfoil,wehadtosearchforotherderivatives
thatwouldbeavailableinthiscountry.WefoundthattheEthiopiancompanyMIDROCis

21
Ethiopia. Central Statistical Agency. 2011 Population. July 2012.
22
TheMIDROCEthiopiaTechnologyGroup.Paints.2012.15Nov.2012.<http://www.midroc-
ceo.com/midrocetg/?q=mbi_paint>
23
Ibid.
24
Ibid.
13
producinganaluminumpaintthatwouldfitperfectlywithourproduct
25
.Theirpaintissold
attheAddisHomeDepot
26
,whichislocatednearourplantinthecapitalAddisAbaba.
AddisHomeDepotwillalsobeabletosupplyuswithallthedifferentequipmentand
materialsthatwillbeneededfortheproductionoftheAbasalasolarcooker.

Publicity and Promotion

To promote the Abasala solar cooker, the company chose to make a brochure
27
especially
for the NGOs located in Ethiopia, which is why it will be written in Amharic and in English, two
of the official languages in the country. The main goal of the brochure would be to reach as many
NGOs as we can and to gain partnerships with those that would be interested in distributing the
product or in teaching workshops on how to use it. On this note, the company was able to gain a
partnership with the NGO Loeuvre Lger
28
who will be helping by sending volunteers to do
teaching workshops to women on how to cook with the solar cookers. Those workshops will be
offered in the city of Addis Ababa where we are based, but also in rural areas around the capital.
Those workshops will help Ethiopians make the transition from charcoal or wood to solar energy,
because wood scarcity is becoming a problem
29
in Ethiopia. We also hope they will encourage
more and more people to try and adopt our solar cooker as a regular cooking habit.
In terms of publicity, the company only chose one medium, which is the radio because it
is the most effective way to contact the Ethiopians who live in rural areas around Addis Ababa.
The radio is the most used medium in Ethiopia with approximately 50% of the population having
access to it and listening to it on a daily basis
30
. There are four main radio channels in the Addis

25
TheMIDROCEthiopiaTechnologyGroup.Paints.2012.15Nov.2012.<http://www.midroc-
ceo.com/midrocetg/?q=mbi_paint>
26
TheMIDROCEthiopiaTechnologyGroup.ContactUs.2012.15Nov.2012.<http://www.midroc-
ethiopia.com.et/md02_contactus.html>
27
See full brochure Appendix G.
28
As confirmed on the phone with Charles Mugiraneza, African Program Manager, International
Programmation from LOeuvre Lger.
29
DAMTE, Abebe, KOCH, Steven F. & MEKONNEN, Alemu. Coping with Fuel Wood Scarcity:
Household Responses in Rural Ethopia. IDEAS. Nov. 2011.
30
See Factor Cost from the Ethiopian Investment Agency
14
Ababa region, but Ethiopia Radio is the most popular one. We already have prepared a jingle that
would last approximately 15 seconds and that could be aired on the radio.
Another way for us to advertise our product is doing demonstrations of the Abasala solar
cooker in local market places. We would be demonstrating our product by cooking the food on
the public place and distributing it for free to the curious people passing by. There are two
markets at a distance of 12 kilometers of our plant: the Merkato Market and the Shiromeda
Market. The Merkato is the biggest food market in Africa while the Shiromeda is a smaller public
market specialized in pots and other cooking crafts
31
. Our Ethiopian contact also told us that the
best way to have publicity is to go in those markets and sell our product with the help of very
good demonstrators or salespeople
32
.
Last but not the least, as another way to promote our product, we will also offer financing
plans for families who cant afford to pay their purchase in a single payment. The interest rate
that we will be proposing is of 40%, which is less than usual rates in Africa
33
.
Distribution and Price

Two opportunities were presented to us in regards of the distribution of our product and
we decided to take advantage of both of them: the on the spot sales and sales through rural
tradeswomen. The first one is to sell our product directly at its place of production, in Addis
Ababa, where we will have a customer service front desk in the plant.
The second opportunity is to have commission based independent agents selling our
Abasala solar cookers in their respective rural areas. The NGO Green Ethiopia
34
will help us get
in contact with groups of women they already know that would have the capacity and will to sell
the product as their own small business. These women will work on a commission-based salary
that will earn them approximately 11.45% an item (2 CAD$ for each item sold). We thought we
could expand our sales gradually in the five regions targeted, starting with the closest one to

31
Addis Ababa. WikiTravel. 17 Oct. 2012.
32
Full interview in Appendix H
33
Serving the Worlds Poor. Harvard Business Review. September 2002.
34
Full e-mail in Appendix I
15
Addis Ababa: the Special Zone. There is about 113,215 rural households living in this first
zone
35
.

Customer service policy

The company will offer an on the spot after purchase customer service, which will
consist in giving assistance, answering technical questions about the product or receiving the
monthly payments directly at the plant. We will also have a phone line for the customers who
cannot travel all the way to the capital. A one month warranty will be offered on our solar
cookers and people will be able to come in person for exchange or refund.

Operating plan

We decided to produce the Abasalas directly in Ethiopia, in the capital of Addis Ababa because
this will reduce our operating costs and we will not have any import fees, since all the raw
materials will be purchased locally. The workforce is also quite inexpensive (140 CAD$ per
employee per month) and this will benefit the local populations: we will be able to employ more
Ethiopian women to assemble the Absalas for a reasonable cost, thus lowering as a result the final
retail price of the solar cookers. In addition, the Ethiopian women we will hire for the production
will receive an income that will improve their quality of life. The location of Addis Ababa is also
strategic: the infrastructure is more developed than in the rural regions around and this will
facilitate our acquisition of raw materials. The capital is also a central point around the villages of
the Oromia region, which will be our target market.

We found a plant in Addis Ababa which we could rent for 1600 CAD$ per year
36
.

35
Ethiopia. Central Statistical Agency. 2011 Population. July 2012.

16
The monthly fees for Electricity, water, gas and garbage are 216 CAD$
37
. We will not need to
invest a lot of money for the equipment, because the production chain only needs simple tools
such as wheelbarrows, buckets, knives and hand drills. Based on calculations by Teresa
Whitaker, we predict that with our 10 employees, we will be able to produce 300. This is an
average of one Abasala per worker, per day. This number is reasonable; since we can produce in
waves and start many Abasalas at the same time, then continue with a second batch while waiting
for the first one to dry.

Teresa Whitaker is in charge of the R&D. She developed the Abasala, which has improvements
compared to the competitors, thanks to its double parabolic shape and the water drainage hole.
We will also use aluminum paint for a better resistance to humidity. We will keep improving the
product based on the feedback from our customers.

Both the product and our method of production are environmentally friendly. Based on the
Environment Law Ethiopia from the International Encyclopaedia of Laws, our production method
does not violate any environmental regulations.



Human Resources Plan
Each successful company has certain positions for certain people. Having several leaders
for certain tasks rather than one single leader in charge of everything makes for a more dynamic
and well rounded team. Within our team, we explored each persons strengths, and each persons
weaknesses. From there we were able to build and select key positions for each team member.

36
Found thanks to an online Ethiopian realtor, www.ezega.com
37
All costs were found in the Factor Costs from the Ethiopian Investment Agency.
17
Sara Bibeau was appointed the title of CEO. Sara majors in International Business and has
a strong head for business matters, as well as dealing with people. A CEO of a company is a big
role to fill and we feel that Sara is more than suited for the position, as she stays organized and
helps to make sure all aspects of the company are running smoothly.
Laurence Hebert-vinet was elected into the position of Vice President of Finance and
Marketing. Laurence currently majors in Business and in turn studies the logistics of business and
marketing. Laurence has had a huge role in gathering and organizing researched data about the
target market and selling audience. Laurences position in the company is pivotal to its success.
Teresa Whitaker was chosen to be the companys Vice President of Operations and R&D,
or research and design. Teresa is a science major at the University of Cincinnati, with a focus in
biology. Teresa is the mind behind the technical aspects of the Abasala Solar Cooker and works
to make sure that the cooker functions to the highest of its potential. Her contacts in the science
field have also been a huge help in further developing our product.
Finally, Kara Storey was selected to be the Vice President of Human Resources. Kara
mainly focuses on the development and production of marketing material and the branding for
the company. Kara designs and produces items such as brochures and flyers for distribution.
Karas main task is to create items that encourage the market to learn about and buy our product.
As the above indicates, each member of our four-person team has a very specific task.
However, when need be, each team member is able and more than willing to step into another
role at any point. This combination of structure and flexibility genuinely are the backbone of
making our company a successful one.
18

Action Plan
TheGanttchartwecreateddemonstratesourplanofactiononcewereachour
locationofproductioninAddisAbaba.Theplanweoriginallycreatedisbasedonatime
spanoffourteenweeks,butthisissubjecttochange.
Ideally,onceinAddisAbaba,weplantosignthecontracttorentourfacilitieswith
anestablishedmonthlyrent,purchasetherawmaterialsnecessaryforbeginning
operations,andtransportingsaidrawmaterialstoourrentedestablishmentwithinthefirst
week.
19
Withinaboutfiveorsixweeksaftertheseinitialtransactions,wehopetohave
created,released,andbegunacceptingjobapplications.Alsoduringthisfivetosixweek
timespan,weplantohavecompletedthefirsttestrunofourproduct.
Shortlyafterjobinterviewshavebeenconducted,thehiring,orientation,and
trainingofnewemployeeswouldtakeplace.
Bytheendoftheseventhweek,thesetupoftheproductionlinewouldbe
completed,endingwithaqualitychecktoensurethatthesolarcookersarethebestthey
canbe,beforebeingreleasedforsale.
Thefollowingseventoeightweekswouldconsistofthestartofmainproduction.
Onceallofthekinksareworkedoutandemployeesarecomfortable,theoperationsshould
runsmoothlyandefficiently.
Finally,bytheendofthisfourteen-weekplan,thesalesofthesolarcookerswould
begin,bothattheplantandbycommissionersonthefield.



20
Financial plan
We fixed our selling price at 17.46$. We predict to be able to produce at least 300
Abassalas per month and to have a high demand; therefore we will be able to sell all of our
monthly production on a regular basis. Since we will work with independent Ethiopian sales
agent, we will be able to calculate ahead of time the average demand and adjust the production in
consequence. A projective Income Statement can be found in the appendix D for years 1, 3 and 5.
We do not expect year one to be a profitable year, but on the 3
rd
year of operations, thanks to a
governmental grant of 30 000$
38
which we could be eligible to thanks to our mission, we will be
profitable. Based on the estimated average cost per unit, we found out that the profit margin per
unit will be of around 5.72%.
All the cost of sales and the operation costs can be found in the document Estimated Cash
Flow Over Five Years in the Appendix F. The main cost components are the facility rent, the raw
material purchase, the publicity and marketing, the services (phone/internet), the transport and the
commission on sales.
All 4 team members (Teresa, Kara, Laurence and Sara) will put $7,000 each from their
savings in order to have a start up funding of $28,000. It will be sufficient to rent the facilities,
pay the first service bills, purchase the raw materials, and pay the salaries during the first three
months until the production chain is well in place.
The ROI (Return on investment) will be negative on the 1
st
and 2
nd
year (around -1,11 and
-1,75), but in the 3
rd
year we will start to be profitable thanks to the governmental grants. The
ROI will be between 1,28 and 1,67. We dont plan to use bank loans; therefore the ROA (return
on assets) will be the same as the ROI.

Executive summary
In summary, our 4 team members will each invest $7,000. We will then have a start up
funds of $28,000. We count on government grants to be able to help the company be viable

38
Please read the Email from J. patrick Wozny from the US Embassy in Addis Ababa in the
Appendix E
21
within the first three years of activity. We expect to be able to grow thanks to the help of NGOs
that will volunteer to educate the population on the benefits of cooking with solar energy and
teach them how to cook with the Abasalas. Our product is more competitive in terms of price and
it has the best design with a double parabolic shape. It is also a possibility for the Ethiopian
households to lower their energy costs. Our company will grow thanks to our independent agents
and the fact that we have the best product and we will keep improving it based on our customers
comments. We will first focus our target market in the Oromya region near Addis Ababa, but we
will promote the product in the nearby regions on the radio and with the brochures that we will
distribute to the NGOs in Ethiopia. Our long-term vision is to cover the Ethiopian market within
3 years and to implement it in Kenya, Sudan and Uganda within the first 5 years of operations.
We are confident that I-On will be a success and benefit greatly the Ethiopian women and
households. They will love cooking with the Abassala, because cooking with I-On, Its SUN-
tastic!











22
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27
APPENDICIES



Appendix A


28


Appendix B

SWOT Matrix
Strengths Weaknesses
We offer a new model of solar cooker
that is:
Cheaper than usual parabolic
solar cookers in terms of price;
More durable than cardboard
panel cookers;
Cooks at higher temperatures
than most solar cookers;
Does not require to track sun;
Environmentally friendly and
user friendly;
Providing jobs and community
bonding time.

We will be offering workshops and
training to the final users.

We will also offer microcredit

We offer a product that is:
Not as waterproof as metal
cookers;
Not very portable;
Increasing fire hazard.



Opportunities Threats
Our operations will be based in the
capital Addis Ababa, which is a very
strategic site.

The existing solar cookers are only
distributed or sold on a small scale.

A study from GTZ showed that the
acceptance of the solar cookers is high
in African rural areas.

Few NGOs distribute the product for
free, which narrows down a little bit
the number of potential clients.

Those NGOs are served by a very
diversified company.

The political situation of Ethiopia
could be a threat because there is a risk
of civil war.


29
Appendix C

The temperate climate zone is in green
39
; this is where Addis Ababa and the five regions
surrounding it are located.

39
Gographie et climat. Abyssinie Voyages.
30

Appendix D
Estimated average cost per unit (300 abasalas/month)
Description Price
(CAD$)
Term or unit used Total cost
per month
(CAD$)
Unit cost
(CAD$)
FIXED COSTS
Facility rent 1600,00 Per year 134,00 0,45
Electricity, water, gas,
garbage
216,00 Per month 216,00 0,72
Marketing costs 20,75 Per week day (x20) 415,00 1,38
Human resources * 140,00 10 employees 1400,00 4,67
Internet (& online phone
services)
168,00 Per month 168,00 0,56
VARIABLE COSTS
Sand/Clay/Straw Free Transport from
villages
0 0
Water 123,00 300 cubic meter 123,00 0,41
Linseed 410,00 A ton - 0,21
Aluminum paint 39,96 A gallon - 1,60
Supporting bar 4,18 6 feet acrylic rod - 2,09
Black paint 0,30 Per oz (4 oz needed) - 1,20
Hook N.A - - 0,08
Amortization on tools** 27,77 Per month 27,77 0,09
Transport/Delivery 2,00 Per item 600,00 1,00

* Fixed costs are in blue, the more units we produce, the cheaper the cost per unit will be.
*Variable costs are in black.
**Include shovels, wheelbarrows, buckets, knives, and hand drills. Total of 1000$ with
depreciation of 36 months.

31

Description Price
(CAD$)
Term or unit used Total cost
per month
(CAD$)
Unit cost
(CAD$)
COMMISION ON SALES
For women entrepreneurs 2,00 Per unit sold - 2,00

Retail selling price
(CAD$)
17,46
Total unit cost
(CAD$)
16.46
Profit per item
(CAD$)
1,00
Profit margin 5,72%
OPTIONNAL ITEMS
Description Price
(CAD$)
Term or unit used Total cost
per month
(CAD$)
Unit cost
(CAD$)
OPTIONAL COSTS
Tarp 72,00 30 tarps - 2,40
Water pasteurization indicator 7,00 Per unit - 7,00

Retail selling price
(CAD$)
27,46
Total unit cost
(CAD$)
25,86
Profit per item
(CAD$)
1,60
Profit margin 5,82%

*Greater profits are possible with the interest revenues (rate of 40% on equal payment plans),
but they are not considered in this chart in order to cope with the risk of payment default.
**We will be eligible to governmental grants after a few months of production, which could
eventually lower the cost per item
32
Appendix D
Income Statements: projections after 1, 3 and 5 years of operations. Please note that the high
profit margins at year 3 and 5 are due to the governmental grants. All benefits will be reinvested
to expand the company.
I-On inc. Income Statement (Projection, Year 1)

Revenues Total

Sales at the plant 8488
Sales from Independent Agents 33961
Grants 0
Total Revenues 42449

Material 24048
Plant Labor 16800
Plant & Depreciation 1705
Custom Eng./Installation 11761
Total COGS 54314

Gross Margin -11865
Gross Margin % -27,95

Selling (commission) 3889
General & Administrative 4980
Operating earnings -20734

Interest Revenue 8489,8
Interest Expense 3000
Total Financial Items 5489,8

Earnings Before Tax -15244

Tax (35%) 0

Net Earnings After Tax -15244
Net Profit Margin -35,91



33
I-On inc. Income Statement (Projection, Year 3)

Revenues Total

Sales at the plant 23124
Sales from Independent Agents 92498
Grants 30000
Total Revenues 145622

Material 29626
Plant Labor 20697
Plant & Depreciation 1955
Custom Eng./Installation 17429
Total COGS 69707

Gross Margin 75915
Gross Margin % 52,13

Selling (commission) 10591
General & Administrative 18137
Operating earnings 47187

Interest Revenue 9249,76
Interest Expense 8570
Total Financial Items 679,76

Earnings Before Tax 47867

Tax (35%) 16753,36

Net Earnings After Tax 31113
Net Profit Margin 21,37






34
I-On inc. Income Statement (Projection, Year 5)

Revenues Total

Sales at the plant 28294
Sales from Independent Agents 113177
Grants 30000
Total Revenues 171471

Material 36896
Plant Labor 30108
Plant & Depreciation 2555
Custom Eng./Installation 20298
Total COGS 89857

Gross Margin 81614
Gross Margin % 47,60

Selling (commission) 12959
General & Administrative 8926
Operating earnings 59729

Interest Revenue 11317,68
Interest Expense 9600
Total Financial Items 1717,68

Earnings Before Tax 61447

Tax (35%) 21506,42

Net Earnings After Tax 39940
Net Profit Margin 23,29







35
Appendix E
Email sent to James Patrick Wozny,
US Embassy, Addis Ababa

From: Sara Bibeau [mailto:bibeau.sara@courrier.uqam.ca] Sent: Wednesday, October 17, 2012
10:11 PM To: Wozny, James P Subject: Question about a social entrepreneurship project in
Ethiopia

Good afternoon Mr. Wozny,
I am a Bachelor student and I'm working on a social entrepreneurship project with my teammates
from the UQM (Universit du Qubec Montral - Canada) and from the University of
Cincinnati. We'd like to start a small business in Ethiopia by producing and selling solar
cookers.We'd like to hire and train a few Ethiopian women to build the cookers and then sell
them in the towns nearby. Those solar cookers could improve greatly their quality of life, since it
would create jobs, they'd also be able to cook food without energy costs such as fuel, it would
prevent deforestation and health problems due to smoke inhalation. Basically, my question is
this one: would our small business be eligible to the funding opportunities offered by the US
Embassy? If not, would you be able to give us a few tips on where we should be looking for our
start up funding? It's quite difficult to get loans for small businesses since we plan to have our
operations outside of the United States. Thank you very much for your help. Truly yours, Sara
Bibeau

Hello Sara;
Thanks for your letter and I wish you all of the best, so I am going to take the time to
answer this as completely as I can.
Generally I can say yes, your idea could qualify for funding from my office, but each of
our program has its own set of requirements from the particular source of our funds, but also
Ethiopian law has some restrictions, depending on where you are working and how your
organization is structured, so we would have to see the proposal before we could say for certain.
For example, under our Ambassadors Special Self-Help Program(SSH) we normally
fund local NGOs and we are required to verify the organizations legal registration certificates
under Ethiopias CSO law. There are restrictions for charities under the CSO law of how
income generated by their activities may be used, and the category for which the organization
should be registered, depending on their particular activities and the percentage of their budget
in foreign funds. We have been able to fund a variety of handicraft, animal fattening, food
production projects that support community based groups, like womens cooperatives or for the
elderly. I actually believe that operating as business, even a very socially concerned one, may
free you from the civil society restrictions aimed at directly at charities.
36
We havent awarded SSH funds directly to businesses very often, but there is nothing in
our rules that specifically prohibits it except that we cannot use SSH funds for seed capital,
revolving funds or start ups, so keep that in mind when writing a proposal of what we can fund.
There is a new policy pending that will not allow us to fund virtually any kind construction. In
recent years about 90% of our projects under SSH have been construction projects, so we may be
looking for more Income Generating Activities (IGA).
We have another program not listed on the website from the United States African
Development Foundation (USADF). You might look at their website for information on what
they do, but we have a limited amount of funding for small grants up to $12K for IGA projects
like you are describing, but it you apply for SSH funding we will automatically consider you for
this fund. The problem you will run into, however, is your organization must be completely
owned managed and run by Ethiopians and based here.
We may have funding in the coming months for gender based grants up to $30K So, if
the focus were on services for improving the lives of women and girls primarily, with the cookers
as a means to achieve those goals your proposal could qualify. We will announce the program
and goals on our website when funding is available.
We have funded various efficient cookstoves (mirt, Rocket, alcohol ), biogas projects and
manufacturers. We currently work with a manufacturer of solar cookstoves and they also make a
solar sterilizer for medical equipment, but the solar cookers dont seem to work well with the
kinds of food people eat and the way they prepare it. Ethiopia has signed on to the Clean Cook
Stove Alliance, Peace Corps is working on small projects with stoves, and we can point you
toward regional organizations (e.g. HOA-Rec) and universities working on these issues too.
USAID through their Democracy and Governance office may have funding too, but I would
imagine your project would be too small for their ability to fund. I spoke with our Regional
Environmental Office too, to see who they might recommend. Other governments through GIZ
and SNV work in these areas too.
I dont want to discourage you, but I know I have laid out a bit of a maze, given you lots
of thing to look up, and suggested that funders are not that enthusiastic about solar here. Even
though offices like mine take a long time to make their decisions, we still manage to fund lots of
projects every year. I think working as a business may help you, at least in terms of
sustainability.
Best,
J. Patrick Wozny
Small Projects Coordinator
Political Economic Section, Small Projects Office
US Embassy, Addis Ababa
Tel: 011-130-6094
Fax: 011-124-2431
Mob: 0911-529-773
37


Apendix F






38
Appendix G



39

Appendix H

Interview with our Ethiopian contact
Interview with Hirut Tinsai Akalu
Hirut is a 20-year-old International Relations major at the University of
Cincinnati. She speaks both fluent English and fluent Amharic. Though
Hirut was born in the United States, both of her parents are native to
Ethiopia and they visit as a family once a year. Hirut is part of a strong
Ethiopian community both within Cincinnati and in the surrounding
cities.

Q: How many times have you been to Ethiopia?
A: I have traveled to Addis Ababa with my family once a year since I
was a child. Some years we stay in Addis Ababa, and others we travel to the surrounding areas.
Q: When in Ethiopia, what do you and your family spend time doing?
A: Mainly visiting with my grandparents and family members. We spend a lot of time eating and
catching up. Sometimes we take drives to different parts of the country to go to markets and visit
orphanages.
Q: When your grandparents cook, how do they go about this?
A: My grandparents are fairly wealthy so they have an oven that is similar to the ones we use in
America.
Q: Do most people have ovens? If not, how do they prepare their meals?
A: It depends on the part of the country you are in. Some parts are wealthy, while others are
extremely poverty stricken. I have seen men boil water over a flame and cook that way. Mostly,
food is prepared over a flame. Some food is not cooked at all.
Q: Do you think Ethiopian citizens would be open to a new means of cooking and food
preparation?
A: Yes, I believe if presented the right way, the Ethiopian community could be open to this.
Q: What are the markets like in Ethiopia?
40
A: Again, this depends on the part of the country you are in. Some markets are extravagant and
sell fabrics and animals. Others are small and dirty and the people are violent. In general,
transactions at Ethiopian markets are centered around the barter system. There really is never a
set price for anything. Some markets are sort of in the middle of nowhere; so one person will go
and retrieve things for a whole group of people.
Q: How do Ethiopians best respond to advertisement?
A: I do not recall many advertisements from when I have been in Ethiopia. Usually one goes to
the market with something already in mind, or purchases items based off what is presented to
them at the market. For any new product, I would definitely recommend having salesmen who
are able to demonstrate and sell.
Q: How widely accepted is the English language in Ethiopian communities?
A: There are a lot of people like me, who know both languages. Some only speak Amharic, but
can look to others for help with identifying important things.
Q: Do you have any advice for someone just starting a business in this part of the World?
A: Just to keep your mind open. You may need to experiment with what works, what is
successful, and what allows you to sell your product and make a profit. Know what you are
talking about and be able to provide concrete evidence of its purpose and use. Have good
salesmen who are able and willing to communicate with average customers in the market place.












41
Appendix I

Email sent to Green Ethiopia

Good afternoon,
I am a Bachelor student and I'm working on a social entrepreneurship project with my teammates
from the UQM (Universit du Qubec Montral - Canada) and from the University of
Cincinnati. We'd like to start a small business in Ethiopia by producing and selling double
parabolic solar cookers.We'd like to hire and train a few Ethiopian women to build the cookers
and then sell them in the towns nearby. Those solar cookers could improve greatly their quality of
life, since it would create jobs, they'd also be able to cook food without energy costs such as fuel,
it would prevent deforestation and health problems due to smoke inhalation.

Basically, my question is this one: would your NGO be wiling to help us in teaching the
Ethiopians how to use the cookers, or help us train a few women to build them? Also, would you
accept as an NGO, to distribute and help us promote this kind of product?

Thank you very much for your help.
Truly yours,
Sara Bibeau

Dear Sara
Thank you very much for your contact and congratulation for your work and the idea you
have. We appreciate very much such initiatives. We have many good contacts to small women
groups and women associations. These women do not have any alternativ to cook. All cookings
are done by charcoale and solar energy would be a good alternative. The problem why in
Ethiopia cooking with solar energy is not common is because the ladies they cook in the evening,
after sun-setting. There are a lot of organizations which try to install alternativ cookers but
unfortunately until today they are not very succesful. But we are sure for the future that is the
best alternativ, because wood is very rare in Ethiopia.
I stay in Ethiopia in November (5.11. - 24.11.) and than next year after the 25 January. I
could contact some ladies groups and ask their interest. But for that I need more information
(type of solar cooker, costs, etc.). Are you planning to visit Ethiopia and discuss yourself with
interest groups? If yes, I would make the contact between you and women groups. We ourself we
would not sell solar-cookers by our NGB. But we know enough young ladies which would be able
42
and interested to start such a business. And we know also other organizations who allready sell
such solar cookers.
I hope that this answer is OK for you. Once more I thank you for the contact and let me
know if I can do more for you. Anyway I wish you good success with your Bachalor studies.
Freundliche Grsse / Kind regards / Meilleures saltutations

Kurt Pfister, president
Stiftung Green Ethiopia
P.O. Box 171
CH - 8405 Winterthur
+41 52 233 1531
kurt.pfister@greenethiopia.org
www.greenethiopia.org