TO :

GROUP EXECUTIVE DIRECTOR PROGRESSIVE HOLDINGS 8TH FLOOR, CABS CENTRE

FROM: GENERAL MANAGER MARKETING, OPERATIONS, PUBLIC RELATIONS FIRST FUNERAL SERVICES RE: REPORT ON BEITBRIDGE PARLOUR FEASIBILITY STUDY This document serves to report on findings of the feasibility study and survey conducted on the probability and business possibilities for operating a parlour in the border city of Beitbridge. The survey assessed the capital, manpower, and operational factors and requirements concerned with opening a funeral parlour in the town. Herein enclosed are the findings of the survey: Economic Viability of business Beitbridge town has an urban population of plus or minus 600 000 and a rural population of at least 400 000, thereby providing a fairly large potential market. The town is currently being serviced by only one fairly small funeral operator that does not have a large capacity. The town has a high mortality rate. According to the Beitbridge border health facility, at least 15 bodies a week cross over from South Africa into Beitbridge, and according to Beitbridge hospital and police and the Rural District Council there are at least 2-7 deaths per week within the town, providing an overflow of bodies that the existing funeral services is finding hard to cope with. As such it is expected that there will be more than enough business to sustain more than one funeral service provider within the town. Legal Issues In order to operate within Beitbridge border town, the company is required to follow the bylaws of the rural district council and register to operate a funeral service. The company will also require health certification to operate a funeral parlour. Financial Feasibility It will be necessary to borrow from financial institutions for initial and start-up operational costs for the funeral parlour. Additional capital influx can be obtained from the companys current existing cash project until the parlour becomes self sufficient. Given the potential business expected, barring any unforeseen circumstances the parlour should prove profitable within six months operation and begin to return the capital injected.

Recruitment/Resources Have currently recruited one agent who currently resides in Beitbridge to scout for possible business premises to rent, particularly a house or warehouse that can be converted into a parlour and also establish contacts at the hospital, police and other health facilities that we will need for business purposes. I propose to pay him a retainer of US$150.00 for his services. To staff the parlour once it is operational, our intention is to transfer staff from other branches and recruit once the business begins to show a profit. Agent Recruited: Clackson Mabika, +263772915878; clacmabika@yahoo.com Cultural Issues The survey found that it would be necessary to send staff out to Beitbridge a month before the parlour become operational so that they become acclimatised to the town and establish contacts within the community and begin to drum up business. They will also need to familiarise themselves to the culture of the dominant culture which is the Venda and their burial rituals and practices. In conclusion, it is my recommendation and observation that Beitbridge is a fast growing and expanding town, with a high influx of residents and new businesses. It is imperative that First Funeral Services take advantage of this new and open market and open a parlour before we are overtaken by our competitors. Compiled by J.D NKATHAZO