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Chocolate Factory

In

Ivory Coast(West Africa)

Group 6

Anubhav bansal

Ankit jain

Samreen saba

Shweta chandra

Vinay baheti



Introduction-Ivory Coast

• Official name : République de Côted’Ivoire

• Form of government : transitionalregime

• 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 world’s 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



• Creating incentives for labor-intensive

employment opportunities and strengtheningprofessional and vocational educational

opportunities.

Need for Positive Growth



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 to3 percent during 2010 to 2014.



• SOCIAL

– Crisis resulted in a significant rise in

poverty and increased inequality, increasedunemployment, and a poor management of

public expenditures and resources.

– There has also been a significantdeterioration 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

WEF’s 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 Timber94, Wetlands, have been signed.



• LEGAL

–

Freedom House:6 out of 7 for political rights and 5out of 7 for civil rights

– 5.3 Percentile in the World Bank’s Political Stability

Governance Indicator

– Freedom of religion is respected but academicfreedom is circumscribed

– The judiciary is not independent

–Judges are political appointees without tenure andare 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 thecondition 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 May2005 the Initiative for African Cocoa Communities(IACC), a new public-private partnership toimprove the lives of West African cocoa farming

families and their communities. The IACC bringstogether industry, farmer groups, NGOs, anddevelopment groups in West Africa.

• we will be involved with this foundation andcontribute as much as possible from our side.



Raw Materials

COCOA

• The major raw material required is cocoa in production of

chocolate

• . Côte d’Ivoire is the world’s dominant producer of cocoa

• In 2006 –09 its average production reached almost 1.3 million

tons

•

Cocoa is produced by a vast number of small farmers andcooperatives

• There are itinerant buyers



Raw Materials

• Economic agents in Côte d’Ivoire 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 in2010



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 thecountry

• In our business prospect we try to bring about

a change where we does not use child laborpractices, 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 andunskilled category are:

• Line workers

•

Food scientist• Skilled production workers

• Managers

• Sales Operatives

Government has encouraged hiring of Ivoriannationals

Labor laws are liberal



Exchange Rates

420

440

460

480

500

520

540

560

rate of exchange of CFA Franc against 1 US$



FDI Inflow

0

50000000

100000000

150000000

200000000

250000000

300000000

350000000

400000000

450000000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

FDI(in US$)



TAXES

• Corporate tax is 25%

• Fifty percent of branch profits are treated as theyhave 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 inthe Ministry of Finance

• The use of external financial advisors to work withthe 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 andcoffee marketing board



Private Ownership Rights

• Foreign investors have access to all forms of

remunerative activity

• Foreign investment in privatization of parastatal firmsis encouraged, with some shared reserved for

parastatal employees and some being issued on the

Abidjan stock market.



Transportation

Railroads: Government-owned railroad runs 660kilometers between Abidjan and border with BurkinaFaso

Roads: System totaling 53,736 km, of which3,600 km bituminous surface

32,000 km gravel, crushed stone andimproved earth

18,136 unimproved



Transportation

Ports and Shipping: Major ports at Abidjan and San-

Pedro 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 inestablishment of our business in ivory coast, wehave still chosen ivory coast.

•

In the Ivory Coast, cocoa provides more than 50%of household income for the five million peopleliving on the country’s 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-and-telecommunications

• http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/CDIVOIREEXTN/0,,menuPK:382617~pagePK:141132~piPK:141107~theSitePK:382607,00.html

• http://www.estandardsforum.org/system/briefs/248/original/brief-Ivory%20Coast.pdf?1255720381

• https://www.cia.gov/library/publications/the-world-factbook/geos/iv.html

http://www.mbendi.com/cyexch.htm

http://www.britannica.com/EBchecked/topic/139651/Cote-dIvoire/55133/Transportation-and-telecommunications


http://www.http/web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/CDIVOIREEXTN/0,,menuPK:382617~pagePK:141132~piPK:141107~theSitePK:382607,00.html




http://www.estandardsforum.org/system/briefs/248/original/brief-Ivory%20Coast.pdf?1255720381



https://www.cia.gov/library/publications/the-world-factbook/geos/iv.html























http://www.mbendi.com/cyexch.htm



THANK YOU

ifm ppt_group 6

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