Chocolate Factory In Ivory Coast(West Africa)

Group 6 Anubhav bansal Ankit jain Samreen saba Shweta chandra Vinay baheti

Introduction-Ivory Coast
Official name : Rpublique de Cte dIvoire Form of government : transitional regime Head of state and government : President assisted by interim PM Capital : Abidjan Official language : French

Official religion : none Monetary unit : CFA franc (CFAF) Population(2010 est.) :21,059,000 Total area (sq mi) : 123,863 Total area (sq km) : 320,803

Country Overview
Positive aspects It is the worlds top exporter of cocoa Its size of 21 million people resulting in income per capita at US$990 in 2009 It has been an important source of jobs and worker remittances for other countries in the sub-region

 Negative aspects It faces a high unemployment rate with an estimated 4 million unemployed youth in 2008 It has been through years of political and military crisis, punctuated by a brief armed conflict that divided the country in 2002 Poor governance Poverty is at an all time high

Need for Positive Growth

The country needs to create more jobs and wealth by creating a more enabling environment for the private sector Investing in improvements in agricultural productivity and food self-sufficiency throughout the country Promoting trade, income-generating activities and self-employment

Need for Positive Growth

Creating incentives for labor-intensive employment opportunities and strengthening professional and vocational educational opportunities.

PESTEL Analysis
POLITICAL
Political stability has returned following the signing of a peace Presidential election is scheduled for November The constitution guarantees press freedom, the government severely curtails the freedom of the press The judiciary is hampered by government interference, corruption and inadequate resources

 ECONOMICAL impact of the politico-military crisis performance since mid-2007 has been broadly satisfactory average 4.8 percent GDP over the period from 2011 to 2014 CPI inflation is expected to remain at 2.5 to 3 percent during 2010 to 2014.

 SOCIAL Crisis resulted in a significant rise in poverty and increased inequality, increased unemployment, and a poor management of public expenditures and resources. There has also been a significant deterioration in Ivory Coast UNDP Human Development Index (HDI) and the country now ranks 163th out of 182 countries

 TECHNOLOGICAL There are 14 mainline telephone lines and 366 cellular subscribers per 1,000 people Internet use is 23per 1,000 people The per capita consumption of electricity is 224 kilowatt hours The Ivory Coast is ranked 111 of 134 in the WEFs 2008-2009 Network Readiness Index.

 ENVIRONMENT
forested area covers about 10 million hectares Various international agreements include biodiversity, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, have been signed.

 LEGAL
Freedom House:6 out of 7 for political rights and 5 out of 7 for civil rights 5.3 Percentile in the World Banks Political Stability Governance Indicator Freedom of religion is respected but academic freedom is circumscribed The judiciary is not independent Judges are political appointees without tenure and are highly susceptible to government interference.

We plan to establish

fair trade is designed to provide fair exchanges with farmers and artisans We will use online facilities to bring out the condition in ivory coast and urge people to buy our chocolates so that the people of the place get their dues.

 The World Cocoa Foundation announced in May 2005 the Initiative for African Cocoa Communities (IACC), a new public-private partnership to improve the lives of West African cocoa farming families and their communities. The IACC brings together industry, farmer groups, NGOs, and development groups in West Africa.

we will be involved with this foundation and contribute as much as possible from our side.

Raw Materials
COCOA The major raw material required is cocoa in production of chocolate . Cte dIvoire is the worlds dominant producer of cocoa In 200609 its average production reached almost 1.3 million tons Cocoa is produced by a vast number of small farmers and cooperatives There are itinerant buyers

Raw Materials
Economic agents in Cte dIvoire must deal with several types of prices -Farm-gate prices -Indicative price

Raw Materials
SUGAR
Sugar can be obtained from the local producers Currently the price of sugar is rising but for commercial use it can be obtained at moderate prices Sugar prices jumped for the third year in a row in 2010

Raw Materials
OTHER MATERIALS
Other materials required could be cinnamon, cloves, anise, almonds, hazelnuts, vanilla, orange-flower water, musk easily available in the local market because of the demand in existing factories and businesses The prices of these materials are also fair and affordable for production

requirement of these materials is in small quantities.

Labor Requirements
Child labor practices are prominent in the country In our business prospect we try to bring about a change where we does not use child labor practices, which is an illegal and inhuman The permitted labors are available easily in the place There will only be a small price rise in the wages

Labor Requirement
Workers that are required for the skilled and unskilled category are: Line workers Food scientist Skilled production workers Managers Sales Operatives Government has encouraged hiring of Ivorian nationals Labor laws are liberal

Exchange Rates
rate of exchange of CFA Franc against 1 US$
560 540 520 500 480 460 440 420

FDI Inflow
FDI(in US$)
450000000 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

TAXES
Corporate tax is 25% Fifty percent of branch profits are treated as they have been remitted as dividend(subject to 6%) Capital duty Payroll tax Real property tax Social security Consolidated returns not permitted VAT at 18% for fees and 10% for commission

Regulatory norms
The creation of a centralized Office of Public Bids in the Ministry of Finance The use of external financial advisors to work with the privatization committee on the sale of parastatals The establishment of an inspector general's office for the Government The dissolution of the non-transparent cocoa and coffee marketing board

Private Ownership Rights

Foreign investors have access to all forms of remunerative activity Foreign investment in privatization of parastatal firms is encouraged, with some shared reserved for parastatal employees and some being issued on the Abidjan stock market.

Transportation
Railroads: Government-owned railroad runs 660 kilometers between Abidjan and border with Burkina Faso Roads: System totaling 53,736 km, of which 3,600 km bituminous surface 32,000 km gravel, crushed stone and improved earth 18,136 unimproved

Transportation
Ports and Shipping: Major ports at Abidjan and SanPedro and minor port at Cassandra Companies like International Shipping Experts which takes the cargo to and fro Ivory Coast through
Air shipment Full container load Less than container load Over size shipment Auto/Boat shipping

Conclusion
Despite the various factors that act against us in establishment of our business in ivory coast, we have still chosen ivory coast. In the Ivory Coast, cocoa provides more than 50% of household income for the five million people living on the countrys 600,000 cocoa farms. cocoa is grown on small family farms, not by large agri-businesses. Cocoa is the product of poor, small-scale farmers, with few machines.

 As we can see the resource has not been utilized to the full extent We intend to make full use of this resource not only for our benefit but also to help ivory coast develop We are taking this project with corporate social responsibility as its main goal

References
http://www.mbendi.com/cyexch.htm#5 http://www.britannica.com/EBchecked/topic/139651/ Cote-dIvoire/55133/Transportation-andtelecommunications http://web.worldbank.org/WBSITE/EXTERNAL/COUNT RIES/AFRICAEXT/CDIVOIREEXTN/0,,menuPK:382617~pa gePK:141132~piPK:141107~theSitePK:382607,00.html http://www.estandardsforum.org/system/briefs/248/o riginal/brief-Ivory%20Coast.pdf?1255720381 https://www.cia.gov/library/publications/the-worldfactbook/geos/iv.html

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