Summer Moon

Pre- assessment &

Validation Report
Draft 01/December11, 2004

Summer Moon
Fish Processing
TABLE OF CONTENTS
1. COMPANY HISTORY / PROFILE

2. PREMINARY FINDINGS AND

OBSERVATIONS
2.1. Marketing
2.2. Production
2.3. Finance & Accounting
2.4. Management Organisation and
Human Resources
2.5. Quality System

3. SWOT ANALYSIS

4. RECOMMENDED ACTIONS
UMU Team & company visit date:
7th of December, 2004.
Mr. Mohamed E Al Bakry
Mr. Hazem Hebish

Company Representative:
Name: Mr. Hany El-Menshawy
Position: Chairman

Pre-assessment & Validation Report

prepared by
Mr. Mohamed E Al Bakry
On: 7th of December, 2004.
-1COMPANY HISTORY / PROFILE
Summer moon was established by Mr. Hani El Menshawy in Borg
El Arab. The company is located in Borg el Arab – 3rd
industrial zone and is based in a selected location to process
and market different kinds of smoked fish and appetizers.

The owner is following up day to day company activities. There

are 3 family members partners expected to join operations in a
period of 4- 6 years.

Summer moon originally was incepted in August 1989 by Mr.

Hani El Minshawy in Limasol, Cyprus. The company
specialized at that time in marketing and trading of salted ,
smoked and frozen fish of all kinds.
In 1991 the company diversified its
interests in the field of export –
import with the launching of summer
moon international trade .

Mr Hani El Minshawy was inspired to

lay the foundation of the first plant
for appetizers and fish processing in
the local area.

The aim was to introduce the top

quality brands to elite clients in
Egypt and over seas.
The development of the processing plant
took two phases. 1500 mts2 were
founded in the 3rd industrial zone of
Borg El Arab utilizing LE 3,000,000.00.
Gradual step up in production and
sustained growth is taking place
according to written development
plans with targets touching 60%
overall sales to exports.

By the year 2007, the company is

expected to reach its full operational
capacity.
The company is categorized in fish
processing food sector.
The product range comprises of more
than 22 brands like:
 Salted mullet roe
 bonne yutti fish with toamato
 Herring salad in jar
 Smoked sardine fillet
 Sardine fillet in jar
 Salted mullet fish gutless &
headless
 Vacuum sardine fillet
 Summer moon herring
 Smoked herring roe in jar
 Smoked herring roe vacuum
 Baby cut fillet
 Baby herring for occasions
 Herring fillet vacuum
The processing of fish is done manually
and carefully dealt with by well trained
girls. The packaging and vacuuming
are semi automatic.
There are 15 factory female workers and
the owner is expecting to double the
number by year end 2005.

The administration is structured as

follows:
5. Chairman
6. Assistant sales
7. Head of sales / local team in
Alexandria office comprising of
 6 sales representatives and collectors
 Secretary
 Administrator and accountant
 General
Total 25 (estimated).
The company is a market leader
in the filed of appetizers
industry in Egypt.

The company market its products

to wholesalers and dealers all
over Egypt.

There are selected VIPs clients

where the management
prefers to look after them
carefully like hypermarkets and
prestigious hotels and clubs.
The company is touching LE
2,500,000.00 sales this year end
(estimated).

The strategic objective of the

company is to preserve and
maintain decent market share and
market leadership in the business
sector of appetizers in Egypt.
The company is targeting to develop
gulf and Europe markets while
globalize its operations.
The company wish to merge with
international chains to capitalize
on logistics and super hi way
markets overseas such as Japan,
Saudi Arabia, and Austria.

The company keeps good client

base and is keen to satisfy them
on price and quality. The owner
runs market surveys occasionally
and analyse results for product
development.
The management constantly
adds new flavours and come
up with its own unique
products.
The company exports to Europe
and GCC. Emirates are
considered one of the biggest
markets for summer moon.
Spines, city centre, other hyper
markets are repeat buyers;
however, no targets are set for
dealers nor real follow up to
push sales constantly
upwards.
The chairman takes care of
regional dealers who in turn
follow up their own clients.
There is no competition for summer
moon in its delicacies due to time,
effort, and attention involved to
produce these brands in the
desired shape.

Most Egyptian competitors prefer to

enter the field with processing the
complete fish or herring. In foreign
markets, we can visualize all sorts
of smoked fish, processed
appetizers that fits well as direct
competitors with summer moon.

Red flesh smoked salmon from

Norway, Britain, and Caspian Sea,
Ukraine Sodak, hamour from the
gulf, shrimps and jumbo shrimps
from Japan or Asia Pacific Rim,
Umm rubian from Saudi. Etc all are
direct competitors to summer
moon products.
Pricing takes the form of adding simple
cost of materials plus direct labour.

The company is participating with SFD

wed pages. It also has its prestigious
broachers and catalogues for display
to traders and researchers.

You may tell from the clarity of illustrations

being presented to you here in .

The chairman uses his excellent rapport

to promote the company image to over
seas clients.
The company policy is maintained
where there is no conflict of
interests between dealers.

Safe margins are keeping every

distributor happy with his or her
territory.

The company invited developers for

sales and market software to bid
and make proposals for
development.

The sales assistant to chairman looks

after the over all sales and
marketing. There is interface
between the two functions.

Local sales representatives carry on

both functions. Dealers over seas
communicate with the chairman for
renewed orders.
The company policy is maintained
where there is no conflict of interests
between dealers. Safe margins are
keeping every distributor happy with
his or her territory.

The company invited developers for

sales and market software to bid and
make proposals for development.

The sales assistant to chairman looks

after the over all sales and
marketing. There is interface
between the two functions. Local
sales representatives carry on both
functions. Dealers over seas
communicate with the chairman for
renewed orders.
2.2 Production
The current premises are not sufficient to meet
expansion.

The company decided to take over new plot of

land in the neighbour hood to double its
production capacity.

Plans are set to double production equipment

100%, fridges 200%, auxiliary tools 100%,
and work force 100 % to meet rising local
and foreign demand.

LE 3,000,000.00 is budgeted and called from

financing sources to meet this expansion.

Moon takes its supplies from Egyptian importers

who in turn import from Holland and Europe.
Summer moon relays on local markets for
selected items like Mullet Fish. Prices are
kept in line with market fluctuations and
reasonable policy is maintained.
The current production program is
utilizing the capacity by 100%
due to the favourable demand.
The company implement 9
hours one work shift.

Summer moon keeps on

developing its product mix with
new inventions and flavours.

Summer moon is environmentally

friendly and all HACCP
recommendations and
procedures are followed.
2.3 Finance & Accounting
Summer moon is profitable and declares
favourable return s on investment.

Summer moon is free from any loans.

There are no any borrowings from the

banks. There are favourable credit
short term facilities to export activities
from Misr international bank, Misr
bank, and export development bank.
The company would consider finance
proposal given favourable pay back
terms and interest rate.
All transaction with dealers and suppliers
are on cash basis. In some cases,
where there are good sales history, 45
days credit is accepted.

The company maintains GAAP.

3.4 Management Organisation and Human Resources

The chairman wishes to engage

with multi national team of
experts to globalize the
business. This would require
the transformation to (publicly
owned company) that might be
traded in Alexandria stock
exchange.

The chairman delegates tactical

decisions from top to bottom
within reasonable limits.

Labour turn over is 2-3 years and

average age of the production
employees 16-25 years.
2.5 Quality System

The company is
conscious of quality
management
systems.

Summer implements
systems compatible
with ISO 9001/2000
and HACCP.
 3.SWOT ANALYSIS
Strengths
 Product quality.
 Fast, accurate, and decisive decisions taking and implementations.
Weaknesses
• Mental strain imposed on decision makers.

Opportunities
 Open markets.
 Favourable trading partners abroad allow market expansion.
 Transfer of new funds to meet expansion and growth.

Threats
 Labour laws and few labour ethics.
 Inability to expand under current organization structure.
4. RECOMMENDED ACTIONS

Based on the above given facts,

we recommend the following:

Urgent trouble shooting project.

Orient the company to merge,
integrate, or associate, or tie
up with multi national, multi
cultural chain to alleviate
administrative burdens and
preserve in the mean while
management status as well
as chairman president’s
family who are already
members and share holders
in the group.
Strategic development project.

Certify HACCP to enable rapid

market penetration with the
US and EU.
Side development project.
HR development.
Corporate finance.
IPO – Listing on ASE / CSE /
other selected stock
exchanges for diversified
corporate finance.