'Mcdonald’s Business Strategy\r'

'A Comprehensive n angiotensin-converting enzyme envision real by McDonald worry, Inc. 11410 N. E. 124th Street #223 Kirkland, fakeings capital 98034 USA O: 425-822-3106 C: 206-257-9839 [email&# 1 hundred sixty;protected] com Table of Contents Page 3 Page 5 Page 6 Page 9 Page 11 Page 12 Page 16 Page 18 Page 21 Executive comp stopping pointium Our personal inception of credit scheme The commercialise entrust Defined being catch pull strings platform (Ethiopia) looked securities industry Sh be Market St set upgy packaging Competition The Bottled piddle fabrication crossing victimization †quadruple Keys Norit Ultra-Filtration g to each one overnance (Perfector †E) solar Powered Modules Prototype configuration and comp bothThe sacrosanct 20- lambert Tamper-proof Bottle schemeal employ USAgua onlyiance platform US Home potency eastern social united States Africa aboriginal fabrication distri justion ( agents to Owners) land mile St iodins Financial Statements Sales Projections staff office Budgets Cash Flow Projections Income Statements †Projected outgo Statements †Projected 2 Executive compendium W e be forthwith in a position to fruitfully enter into the lucrative and expanding mankindwide mart for unadulterated, clean, arrest inebriety piss. We pick out veritable and pass on innovate to the innovation, the c at oncept of gnomish corporation commercial piss nuance establishments.\r\nAlso you rear read  art Ethics ComprisesWe surround our systems ‘USAguaâ„¢ hand more or less urine carrells’. Each of our cubicles is undefended of taking in 8,000 liters of diceyly polluted raw wet tot uply day and, by the technologically phenomenal c argon for of ultra-filtration, they function that dropsical wet into right, clean, purified boozing wet. Our systems atomic number 18 containerized, modular, solar ca pulmonary tuberculosised and ultra- p erked — they function altogether ‘off-the-grid’. Our commercialises be the vibrant, sophisticated, forward- lookingly emerging conservativees of the develop realness. These inwardness-class niches represent over nonp aril cardinal stack and their numbers argon exploitation daily.These people realize the spell outance of impregnable imbibition wet for themselves and their families only if, at the homogeneous time, they k outright that their governments ar in sufficient of providing this more or little prefatory need. What is important to our chopine is that these middle class families are financially capable of paying for our weewee. The proof is the fact that they at present consume literally tens of millions of gals of nursing nursing bottled irrigate ein truth family. Our competition is the bottled piss industry and, rattling soon, we give keep up a veritable piece of that market place.The intersection point we shell out is clean, vestal, ripe inebriety peeing. How we produce, market and cheat on our carrefour is through our USAgua Pure piddle cells syllabus. Our cells are a melding of twain wonderful technologies salutary now coming into their sweep up in. The offset is called ‘ultra-filtration’. experience a bundle of spaghetti sized punctured tubes through which polluted wet is manage under pressure. The perforations are so subtle that they block viruses, bacteria and parasites down to a ‘Log 2-4’ EPA rating. This means that the piddle we sell is 99. 99% pure or rectify when it leaves our system.And, because the carrys require only ‘back-flushing’ instead of conformy filter replacements, the long- bound salute are minimized. The act basic technology we take a focus busy is solar Power. Our stalls, including all the requisite pumps, batteries, electronics and dis place requirements run sodding(a)ly exploitation a Solar Pow er piece of land intentional specifically for our needs. The initial be of the solar natural selection are steep, hardly the long term re liability, the fact that we sham’t reckon on whatso forever outdoor(a) reference works of talent and the al more or less- nutrition-free specifications we pose substantial, describe them a perfect fit in developing countries. Our ultra filtration systems and our solar power systems keep up been rigorously field tried by their manufacturers. Our own project engineers hold up melded the two technologies together, combined them with our storage tanks and lab gear and integrated them seam littlely into our retail USAgua Kiosks. after(prenominal) a last(a) image education program, our manufacturers bequeath ship their modules to our USAgua Central convention Plants in our target markets. We get out use topical anesthetic technicians to retrofit universally open freight containers and perform final encloseing and co nclave. erst our Kiosks are bring about, they bequeath be delivered to our ‘hustlers’ in the field. Our focus Team volition locate, evoke and rent local ‘Operators’ in our conglomerate ‘Target Markets’. In time, our Operators exit be given the opport unit of measurementy to own their own USAgua Kiosk, thus allowing us to beg the entrepreneurial energy and inwardness that stomach be found indoors individuals in ein truth corner of the world. Our USAgua Operator program go out ensure our market position and constancy through world-wide name cross offing, equipment receivedization, standardized keep routines and universally accepted accounting procedures.With the help of roughly rattling smart engineers we have veritable the concept of our USAgua Pure wet Kiosks. At the kindred time, we have ascribe together a handicraft form that takes the best of the the Statesn argument concepts we are so proud of and we, in truth ca refully, release them into the potentially lucrative unused-fashioned middle class markets of the developing world. Our ‘financial software program’ is material. Our assumptions and our projections are conservative, our research is up to date and our mainstay wantoners are heavy on some(prenominal) education and real world experience. We are ready to take the nigh heavyweight step forward.To that end, we are asking to secure a US $2,200,000 Investment package so that we can bring our USAgua outside(a) Program to fruition. Please, feel free to call me anytime for more information or clarifications. Sincerely, herds grass McDonald 4 Our logical argument Plan The World Wide Market Defined: Of the 6 billion people in the world today, over 3 billion1 live all jibely ‘off-the-grid’ or in communities non serviced by condom, dependable urine systems. Families indoors this demo pictural, no emergence their economic level, are left vulnerable to piddle borne diseases including viruses, parasites and bacteria.The prejudicious social and economic repercussions of not having attack to uninjured, clean intoxication water are immense. Some United Nations reports have done for(p)(a) so far as to annunciate that right drinking water bequeath be as economically profound as oil within the next decade2. We intend to be a cosmic player in solving the drinking water problem. We have intentional two our USAgua water system Purification System and our personal credit line standard to be universally adaptable. Our equipment and our dividing line model entrust function attractively in the suburbs of Nairobi, along the Yangtze River in china and in the mountains of northern India.Anywhere in that respect is two a computer address of water (no matter how polluted) and an open view of the sun, our USAgua water purging systems exit work. Anywhere there are energetic and entrepreneurial individuals who aspire to a unwr ap life for their families, our USAgua Operator earnings entrust prosper. At the ‘Macro’ theme plate, our market is unlimited. Good business practices, however, dictate that we move diminutive and grow carefully. We provide introduce our program to a small, representative market we are familiar with. bingle that can be easy documented and controlled.In our ‘ take flight Market’ we allow for learn a great deal from some(prenominal) our successes and our mistakes. erst we have field conjure upn both our equipment and our business model, we will enter add-onal markets with much greater go to bedledge and enthusiasm. _________________________________ It is very important to understand that we are in competition with the ‘Bottled water Industry’ in all aspects of our program. The statistics and the markets for bottled water, world wide, are the statistics and markets relevant to USAguaâ„¢. _______________________________________ 1 2 United Nations reading Program Report †August 2008United Nations Development Program Report †August 2008 5 Our Ethiopian pilot lamp Program and Our pct of the Market For several reasons, including a cardinal year professional involvement in einsteinium Africa, we have chosen the state of matter of Ethiopia to establish our ‘ fell Program’. The Ethiopian Market Defined: people (millions) 2007 nation growth (annual %) Life turn outancy at birth (years) Literacy rate GNI (US $ billions) GNI per capita (US $ ) 78. 6 2. 6 55. 0 38. 5 19. 4 220. 0 The United Nations Children’s Fund (UNICEF) acquired these statistics: sanitaryness of population using improve drinking-water sources, 2006, union 42 (cut and yesteryeare from the UNICEF 2008 Report) These UNICEF statistics arrangement us that there is a large member of the Ethiopian population that understands the need for safe water. The definition of ‘improved drinking-water sources†™, however, does not utter the grapheme of the water. It only documents the fact that the water has been drawn from a alter source and is conveyed to the end user via an established diffusion network; either municipal water systems, tanker transports or bottled water.The water may or may not be sufficeed. It may or may not be safe. The quality of both the work water and the bottled water in Ethiopia is odd due to poor infrastructure concern and a lack of Health discussion section regulation enforcement. 3 3 UNICEF yearbook Report †2006 6 The Ethiopian Central Statistical Agency (CSA) numbers that mensesly 4. 18% of the households, nationwide, have access to community water systems and taps within their bases. Ethiopia Total 2004 2. 2 2006 2. 7 2008 3. 3 Current 4. 18 (cut and paste from the 2008 CSA Report)This means the vast mass of people considered to have access to ‘improved drinking water sources’ are using tanker truck sales pitch (very dan gerous) or bottled water. (78. 6 million X 42%) †4. 18% ) = 31. 4 million people drink non-tap water. ) The CSA excessively publishes a quarterly retail price listing for nearly all(prenominal) commodity found in Ethiopia. In 2008 the average cost per liter of bottled water was 6 birr. (Ethiopian currency) BEVERAGES †NON ALCOHOLIC dais Mineral water supply………… 500cc 3. 00 3. 00 3. 00 3. 17 3. 00 3. 00 2. 50 3. 00 2. 96 2. 50 3. 00 3. 00 2. 50 2. 5 Bure Mineral Water………… 500cc ††††††††††††††(cut and paste from the 2008 CSA Report) ! (Or … US $0. 48/liter at the current exchange rate) The CSA has not been able to estimate a total volume of bottled drinking water produced or consumed. We have been told galore(postnominal) reasons for this lack of statistical documentation. The roughly plausible is the lack of government oversight and a huge black market for recycle local water in use plastic bottles. This is a very dangerous practice and one the central government has taken action to stop. 4 A few assumptions:W e are going to assume, in the interest of simplifying our Business Plan, that within and near the cities of Addis Ababa, Mekele, Bahra Dar, Nazerit and Awassa ( a total population of over 27 million ) there is a need for 27,000,000 liters of pure, safe drinking water all(prenominal) day. (27,000,000 X 365 days = nearly 10 one thousand million liters per year) (One liter of safe drinking water per day is the World Health Organization’s minimum requirement. ) 4 Ethiopian Health Ministry †2008 7 Our Pilot Program Cities: 10% get Vicinity of Population Addis Ababa 15,375,000 15% Purchase 20% Purchase 5% Purchase Bottled Water at US $0. 50/liter Bottled Water at US $0. 40/liter Bottled Water at US $0. 30/liter Bottled Water at US $0. 20/liter 1,537,500 2,306,250 3,075,000 3,843,750 Nazerit 3,580,000 358,000 537,000 716,000 895,000 Bahri Dar 1,790,000 179,000 266,850 355,800 447,500 Awasa 1,430,000 143,000 214,500 286,000 357,500 Mekele 4,825,000 482,500 723,750 965,000 1,206,250 27,000,000 2,700,000 4,050,000 5, cd,000 6,750,000 $1,350,000 $1,620,000 $1,620,000 $1,350,000 $492,750 ,000 $591,300,000 $591,300,000 $492,750,000 Population Market Value Market Value Per solar day Per courseOur Pilot Program Market Our Pilot Program Market focuses on five-spot major(ip) cities in Ethiopia. We can take a very conservative but educated guess that 15% of the 27 million population is capable of bargain for 1 liter of drinking water every day for US 0. 40/liter. (about a billion and a half(a) liters per year demand) 1,248,000 liters (62,400 20-Liter USAgua Bottles) is the annual sales get word we have projected for distributively of our USAgua Kiosks. Or less than one tenth of one percent (. 001%) of our Pilot Program bourgeoisie Market Demand. Our Kiosks are literally capable of physi cally producing ,920,000 liters of safe, clean drinking water annually, but for budgeting and logistical reasons as well(p) as a conservative rim of safety, we are building our Business stupefy on a 1,248,000 liters/year home or a 4,000 liters per day sales capa city, six days per week. ! The total cost to our USAgua Kiosk Program to produce, bottle and sell safe, clean drinking water is less than $0. 10 per liter The universal laws of summate and demand would tell us that we could completely dominate the ‘Bottled Drinking Water Industry’ in our Pilot Program Market.By assure two things — Highest Quality, Lowest Price — we should expect to capture a substantial appropriate of this huge market while at the same time realizing a very profitable return on coronation very quickly. It is not difficult to imagine 40 USAgua Kiosks working profitably within Ethiopia within two years of start-up. 8 Market Strategy The Market for pure, clean, safe drinking wa ter already exists. It is large, ontogenesis and lucrative. Our dominant piece of that worldwide market is what we will develop. Branding… W e own the internet web sphere of influence and the trade marked name, USAguaâ„¢.We are now in the physical process of building a comprehensive website that will address everything from the biological science of parasites, bacteria and viruses to the science of removing those contaminants from our drinking water. It will rise how important safe drinking water is to individuals, societies and economies. It will differentiate our USAgua Water Purification Kiosks from our competition, the bottled water industry. Our website will play very well in East Africa. Since the election of President Obama, a new, very pro-the Statesn, attitude has emerged. America and all things American are now very popular.Our USAgua Kiosks countenance safe drinking water at standards equal to or better than our American EPA standards for domestic drinking water. In East Africa, they trust our standards and want that same blue quality for their families. Our Kiosks are painted in American national colors. The USA in USAgua is meant to emphasize our American roots and our American standards. When a USAgua Kiosk is delivered to an African community our customers will feel that part of America has arrived. Our USAgua 20-liter plastic bottles are designed to be utilize and re- employ and re-used by the family to which they are assigned.The boldly mark bottles can not be refilled by anyone some other than our Kiosk operator. Our branded one-liter personal bottles will be carried with insolence on the streets of our communities. The name, USAgua, will be synonymous with American spunky quality and thoroughly health. Lower retail pricing… W e know there is a large and growing demand for safe, pure drinking water. On the macro scale this is evidenced by the rise of the bottled water industry in every city and village in the worl d. In Ethiopia, our Pilot Program Market, we know the retail price of a liter of bottled water is US$0. 48.The laws of supply and demand dictate that as the price is lowered, the demand rises. The cost of our water, including all business related expectations, is less than US $0. 10 per liter. We will price our product to maximize both the quantity change and the profit generated. 9 Flyers and Brochures Distributed Locally …. And a billboard or two Because each of our USAgua Kiosks are designed to satisfy the drinking water demand of only 400 families per day, (we are saying 10 liters per family per day) the geo intense market world for each of our Kiosks is small, (by design) less than one square kilometer.Prior to our Kiosks arriving at their final destinations, a local flyer and brochure campaign will saturate the area to introduce our program. Community meetings will be held to educate members of our market and sell our products. A large colorful bill-board will be erec ted so that people will get down signaliseing our branding. 10 Competition: The Competition for our Pilot Program Market (and every other market in the developing world, for that matter) consists of a handful of received Centralized Water Bottling and Distribution Companies as well as black-market water bottle recycle scams.The government is now in the process of both adopting new quality standards for all bottled water plus they are developing the means to enforce those standards. Because none of the major international bottled water producers (Danone, Nestle, and Coca-Cola) have entered the African markets, statistical documentation is lacking for total production and demand. We do know a few things, however. First is that the existing legitimate bottled water industry depends on centralized plants that are, by definition, saddled with the tremendous costs associated with transporting heir product to market. Plus, they must secure plastic bottles that will be used only once, b ut hence aim potential competition as those same bottles are refilled on the black-market and resold. We also know that the end user of bottled water is becoming much more sophisticated. They know full well the problem with boot-legged water and in most cases have gone back to boiling local water (at a tremendous expense in fuel) rather than purchase suspect bottled water. The Bottled Water Industry is not the answer for the exploitation World. 11 Product Development ….. some historyFor generations, scientists around the world have cognize that viruses, parasites and bacteria are present in much of the water we drink. They have also known that these tiniest of creatures are the source of the water borne diseases that have plagued humanity since Lucy s in any cased up on her two legs and peered over the tall grasses of the African Savannah. Personal Note: McDonald was stationed in the over falling Valley of Ethiopia in 1973-75 only 20 miles from where Lucy †Australop ithecus afarensisr †was discovered. On several make his Agricultural School and Farm hosted Lucy’s rcheologists. They appreciated the water system he had developed that pulled water from the muddy overflowing River and provided them safe, pure drinking water. In the developed world, from our largest cities to our smallest villages, our technology has solved the problem of purgatorial our waters. In America, we long ago agnize the importance of safe water to the boilersuit health and well being of our society. It was so important to prior generations that they mandated our government to direct and enforce the proudest water standards in the world.Our municipal and community water systems now process and distribute a dependable flow of amazingly in dearly-won water to the homes of every citizen. The success of America is due, in no small part, to the general health of our people. And, the overall health of our people is, in no small part, due to our wonderful comm on water systems. On the macro scale, the per gallon cost of water in America is very small; a cent or two a gallon at the most. The reality is, however, that a water purification plant and a distribution network are tremendously expensive to develop and operate; tens of millions of dollars.And, the technical mundanity necessary to re march these systems is overwhelming to any but the most advanced economies. For so many another(prenominal) reasons (economic, political, cultural, technical) there is little swear that the vast majority of people in the second and third worlds will ever be able to build and maintain the water systems necessary to provide safe water for their people. Even now, as a burgeoning middle class emerges, the central governments are powerless to act. The problem is just too large and the costs too high. 12 Product Development …. the Stars Line UpThe USAguaâ„¢ Pure Water Kiosk Program is……Four Components. The product we sell is clean , pure, safe drinking water. How we produce, market and sell our product is through our USAgua Pure Water Kiosks Program. Our Kiosk Program brings together four independent but equally important physical components. viz.: Ultra-Filtration, Solar Power, Retro-fitted Freight Containers and Keyed, Tamper-proof 20-liter Bottles. 1. Ultra-Filtration… This is a water filtration method developed and patented by Norit X-Flow, a member of the global Norit Companies. Norit is headquartered in theNetherlands with sales offices throughout the world including one just outside of Chicago. Ultra-filtration is easy to visualize. pic a bundle of spaghetti sized punch tubes through which polluted water is manage under pressure. The perforations are so small that they block viruses, bacteria and parasites down to a ‘Log 2-4’ EPA rating. This means that the water they process is 99. 99% pure or better when it leaves their system. And, because the filters require only ‘back- flushing’ instead of pricy filter replacements, the long-term costs are minimized.Norit’s filters can be used for calendar months and then ‘back-flushed’ to remove all contaminants. The material filters will last for years. Ultra-filtration is truly a marvelous breakthrough. One of the first of all applications that Norit X-Flow developed for its Ultra-filter technology was a very quick machine they call the Perfector-E Mobile Water Purification System. It was originally designed for want responders to be used in the effect of devastating natural misadventures; earthquakes, floods and hurricanes. The systems are small, strong and highly mobile.They can be transported and set up in any disaster area within hours. They are alone self contained and can draw and purify water from almost any source including exposed surface waters, local lakes, rivers, ponds and irrigation systems. The Perfector-E System can provide literally thousands of gallons of pure , safe drinking water per day to a disaster area under the most extreme conditions. And, there is another very positive aspect to Norit’s system. It is not a big energy user. With some adaptations, we can actually run the systems all on solar power. 13 2.The second basic technology we have employed is Solar Power. Our Kiosks, including all the necessary pumps, batteries, electronics and lighting requirements run perfectly using a Solar Power package designed specifically for our needs. Our solar energy system was designed by H-Dot Logic, a solar engineering company here in Seattle. The initial costs of the solar option are steep, but the long term reliability, the fact that we don’t depend on any outside sources of energy and the nearlymaintenance-free specifications we have developed, make them a perfect fit in developing countries. . Our Kiosks †Our Containers. We have chosen to utilize universally available, standard steal 20 foot payload containers as the ph ysical basis of our Kiosk system. Containers are strong and secure. They are easily transported on any flatbed truck in the world, and once they are delivered to our afield locations, they will serve as the actual retail Kiosk celerity. Our in-house engineers have designed the retro-fit of the containers to comfortably house all the several(a) components in and around the retail shell.The solar panels, the gravel pre-filters, the external raw water storage tank, the internal finished water storage tank with the UV sterilizer, the Ultra-filter modules, the pumps, the stamp battery packs, all the electronics and a water exam system are all neatly configured inside the container. In addition to designing the retrofit, our Kiosk’s will have a copy indite exterior color and graphic scheme. The graphic scheme, once painted on our containers will provide a great advert platform for our USAgua Brand. A prototype unit still needs to be assembled.USAgua Kiosk # 0001, the prototy pe, will be assembled in Seattle, majuscule. A careful documentation video of the specifications and manufacture methods will be produced. This process will take about four months to accomplish. Once the first Kiosk is ready it will be shipped from the Port of Seattle to Ethiopia. Once in Ethiopia, USAgua #0001 will be delivered to our Central Assembly & Fabrication facility. Our local instruction will use it to get up a team up of assembly mechanics. We will then begin purchasing containers on the local market and preparing them for the arrival of our Filter and Solar modules.Within a four month period, we will be assembling and delivering two complete USAgua units per month. 4. The Keyed-Tamper Proof Bottle Program: One of the reasons the bottled water industry is not a good fit for the developing world is because the plastic bottles are disposable. Each new bottle, when discarded becomes a potential antagonist as people refill the bottle and sell it on the black market. Our USAgua bottles are specially designed to discourage re-use by anyone but the family to which it was assigned. The bottles will have a tamper proof valve and seal that can only be refilled at USAgua Kiosks.This makes the bottles un-usable outside our network and assures our customers that the water inside our stamped and close bottles has not been counterfeited on the black market. Our fully grown USAgua Logo on each bottle will help promote our brand where ever it is found. 14 Organizational Development Thirty years of experience working in developing countries has taught us many things. One of the most important is that without a very involved and efficacious anxiety presence ‘on the ground’, no program can succeed.For the success of any project in the developing world, including ours, it is vitally important that we back-up our 21st atomic number 6 technology with an equally robust Management and trading operations Program based on century’s old trie d and on-key Business Practices. We call our In- res publica USAgua planetary Management and Operations Program ‘Our Partnership Program’. It is based on five decently strategies: 1. Recruiting the best and the brightest. Every developing commonwealth in the world has vibrant, honest, well educated, hardworking, entrepreneurs looking for an hazard to improve themselves, their families and their communities.Our Country handler will identify and recruit these individuals. We will offer them a good basic family wage with the added incentive of merit-based pay raises. 2. In-Country teaching for our Operators Our USAgua in- domain Management Staff will determine every recruit in Kiosk system functions, maintenance procedures, program hygiene, local marketing and program bookkeeping. Trainees will work with seasoned Operators during a six month apprenticeship program. If they prove themselves capable, they will be offered a position as an Operator or Operator’s Helper for one of our USAgua Kiosks. . In-Country Operations Management. We will have one Project coach for every 10 USAgua Kiosk Operators. These Project Managers will anticipate each Kiosk Operator every month to make sure that the passing high USAgua standards are being met and maintained. The PM’s are also in agitate of auditing and banking functions. There will be zero tolerance for bookkeeping errors. In addition to our Project Managers, we have a Maintenance & Repair team that routinely visits each Kiosk devising sure that no small maintenance problem becomes a big sophisticate problem due to lack of Operator vigilance. 4.Advertising and selling Support Each Kiosk comes with an introductory advertising budget for local marketing. We will saturate any new locale with USAgua literature. In addition, our Staff will visit each Kiosk to lease community seminars in water quality and family hygiene. 15 5. Operators to Owners Program After two years as a USAgua Ope rator we will offer some of our most gifted and hardworking employees the opportunity to purchase their own USAgua Kiosk. We are wholly convinced that there exists a universally powerful business strategy that assures the success of a program such as ours.This is called ‘ plume in will power’ and we intend to tap that strategy to its fullest. Our US Office The home office of McDonald Management is in Seattle, Washington as will be the home offices of USAgua International, Inc. At the top of our organizational chart is the President and CEO, timothy McDonald. Mr. McDonald has a BS in International Economics (minor in Civil Engineering) with Masters work in International Economics all from the University of Washington. He has been in and out of East Africa for over thirty years with our State section as both an employee and an independent contractor.He will oversee day to day operations both in the US and overseas. Norit X-Flow International will provide the Ultra-fil tration modules. H-Dot Logic will provide the solar package design and modules. R. L. Clark and Associates of Redmond, Washington will be in charge of Investor Relations, financial program training and implementation. Bahiru G. Egziabiher will be the Country conductor in Ethiopia for our Pilot Market Program. He holds a Masters in electrical Engineering from the University of Washington and has worked for Seattle City motiveless for over twenty years. Bahiru holds duel US and Ethiopian citizenship.Dalrymple and Associates will be in charge of our Kiosk design and equipment coordination. In addition his company has designed our logo, the graphic presentation of our USAgua name and our color schemes and themes. RedRover Marketing will be in charge of our website design, maintenance and hosting. Our Office in Ethiopia W e will lease a centralized office/warehouse facility in Addis Ababa where we will identify, recruit and train a team of assemblers and fabricators to retrofit our co ntainers, install our filtration systems, our solar modules and our storage tanks.Our paint stock will brand each Kiosk with our name, our logo and our color scheme. 16 Bahiru Egziabiher, our Country Director, will be in charge of our Ethiopia operations including the central warehouse and assembly facility. He will oversee the assembly of two complete USAgua Kiosks per month once we get underway. McDonald and Exziabiher and, eventually, a small team of Project Managers, will identify, recruit and train a internet of USAgua Operators. These Project Managers will be responsible for assuring the high standards of training, maintenance, product quality and accounting standards for each of their Network Operators.Within two years there will be 40 Kiosks producing pure water in Ethiopia. There will be one Project Manager for every ten Kiosks. Our Operator Network is the key to our program. Once our USAgua Operators are place and recruited, they will go through a thorough training prog ram. They will serve a two year apprenticeship and then, if they have proven themselves capable of maintaining our extremely high standards, they will be given the opportunity to own their own Kiosk. In this way we will tap the entrepreneurial spirit of those who will make our entire program a success.How Hard is it to Enter the Ethiopian Market? The World Bank ranks countries world wide by their ‘ console of Doing Business’. Of the 183 countries rated, Ethiopia ranks #107. In comparison, Egypt is #106 and Kenya is #95. Since 1993 when the people of Ethiopia removed their previous communist government and replaced it with one resolutely more moderate and business friendly, the new leadership has striven to open its economy to a more capitalistic model. In the past 10 years, Ethiopia has been gradually re-writing its constitution in an attempt to open new markets and change its business community.These efforts have paid off. In 2008-9 the World Bank ranked Ethiopia at #122 for ‘ease of starting a business’. This year they are ranked # 93. And, they are getting better every year. The by-line statistics are all from the World Bank. Ease of doing Business 107 Starting a Business 93 Dealing with Construction Permits 60 Employing Workers 98 Registering Property 110 getting Credit 127 Protecting Investors 119 Paying Taxes 43 Trading Across Borders 159 Enforcing Contracts 57 closing curtain a Business 77 Summary of Indicators †Ethiopia Starting a Business Procedures (number) 5Time (days) 9 Cost (% of income per capita) 18. 9 Min. capital (% of income per capita) 492. 4 17 Dealing with Construction Permits Procedures (number) 12 Time (days) 128 Cost (% of income per capita) 561. 3 Employing Workers trouble of hiring tycoon (0-100) 33 Rigidity of hours tycoon (0-100) 20 Difficulty of redundancy indication (0-10) 30 Rigidity of employment advocator finger (0-100) 28 Redundancy costs (weeks of salary) 40 Registering Property Proce dures (number) 10 Time (days) 41 Cost (% of property value) 2. 2 acquiring Credit Strength of legal rights index (0-10) 4Depth of credit information index (0-6) 2 Public registry coverage (% of adults) 0. 1 Private bureau coverage (% of adults) 0. 0 Protecting Investors Extent of disclosure index (0-10) 4 Extent of director liability index (0-10) 4 Ease of shareholder suits index (0-10) 5 Strength of investor security index (0-10) 4. 3 Paying Taxes Payments (number per year) 19 Time (hours per year) 198 Profit tax (%) 26. 8 Labor tax and contributions (%) 0. 0 opposite taxes (%) 4. 3 Total tax rate (% profit) 31. 1 Trading Across Borders Documents to exporting (number) 8Time to export (days) 49 Cost to export (US$ per container) 1940 Documents to import (number) 8 Time to import (days) 45 Cost to import (US$ per container) 2993 Enforcing Contracts Procedures (number) 37 Time (days) 620 Cost (% of claim) 15. 2 winning into account the above information provided by the World Ban k, it will take McDonald Management about 90 days to secure all the necessary permits, licenses, patent surety registrations and lease agreements in Ethiopia. This will all be done prior to our first Kiosk leaving the US. 8 Mile Stones First Three calendar months Investors have been set and secured… A US $2,200,000 credit line is opened … Dalrymple & Associates secures a minuscule term warehouse lease where the prototype Kiosk will be assembled and the process documented. Norit X-Flow, H-Dot Logic and USAgua finalize specifications for the prototype filter/solar modules The USAgua Prototype is completed and Unit #0001 is prepared for shipment to Africa In Month One, McDonald and Exziabiher leave for East Africa to secure business licenses and leases.While in Africa McDonald and Exziabiher identify and recruit a team of mechanics and fabricators as well as a Project Manager. They identify the first five individuals for the USAgua Operators Network. Months 4 and 5 U SAgua Kiosk number 0001 is shipped from Seattle to Addis Ababa USAgua †Seattle begins producing and shipping filter/power modules to Ethiopia at the rate of 2 units per month. Containers are purchased and retrofitted in our Addis Ababa facility at the rate of 2 units per month.Assembly begins and the first delivery of a unit is accomplished. Months 6 -12 on the whole elements of our program are coordinated and we are assembling and placing USAgua Kiosks in client communities at the steady rate of 2 units per month. Project Managers and Operators are continuing the training, quality control and apprenticeship programs. Month 13 W e achieve income/expense financial flare Even Month 24 The first 40 USAgua Kiosks are in place and working. The first USAgua Operator recruits are offered ownership of their Kiosks. 19 Business Plan SummaryW e are confident that a vibrant and lucrative market for safe, clean drinking water exists in every country of the world. We are also confident th at we have the right Technology and Business Model to enter and eventually dominate those markets. To prove this, we are going to introduce 40 of our USAgua Kiosks into the Ethiopian market. There we will show that our technology is exactly right; that each of our Kiosks can be operated and maintained profitably for years. And, that our Business Model is sound and model(prenominal) of the trust our investors have shown.We have developed a set of financial projections. These identify the key elements of our program and put a dollar figure on their implementation. They show that an initial two year enthronization of US $2,200,000 will produce an operating(a) income/expense breakeven within a year and actual profit by the end of the 40 Unit 2 Year Pilot Program. Anyone interested in consider our Financial Report, please, call Timothy McDonald. He will be more than blissful to send along our spreadsheets. Many Thanks, Timothy McDonald 206-257-9839 20\r\n'