Kamara Kwasi Karkari is a biochemists who worked outside Ghana for more than 30 year. He returned
Question:
Kamara Kwasi Karkari is a biochemists who worked outside Ghana for more than 30 year. He returned in January 2022. Since January, he has been exploring a number of business ideas including production of coconut virgin oil and coconut milk products. He is from Half Assin in the Jomoro District of the Western region. Apart from the Western region, coconut is cultivated in the central region and parts of the Volta region. However, due to lack of support, some coconut farmers are using their farmland for the cultivation of rubber and other crops. In June 2022, he met an old school mate while shopping at the Accra Mall. This old school mate is Engineer Anabila Issah, a managing partner of Massis Enterprise; manufacturers of agricultural machines, food processing equipment etc. in Ghana and their clients include the World Bank. Kamara has saved $500,000 in one of his investment accounts in United States of America. Mr. Karkari has decided that due to limited fund, he can only purse either virgin coconut oil production or coconut milk production but not both. According to the Association Ghana Industries (AGI), small and medium enterprises face a number of challenges including government policy contradictions, high costs of energy, high costs of credit and rent-seeking behavior of the political class.
Required:
(i) Based on the above background and your knowledge of the Ghanaian business environment, conduct macro-environment and industry analysis of the coconut industry in Ghana (10 marks)
(ii) Based on the outcome of your analysis in (i), present a business model with your professional opinion on whether your client should proceed with the project or not. (5 marks)
(iii) Conduct a risk assessment of the project and suggest how to mitigate these risks.
Basic Business Statistics Concepts And Applications
ISBN: 9780132168380
12th Edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel