OMM 614: Innovation and Entrepreneurship
Bendel Vineyard Feasibility Study
Dr. Sheila Schmitz
December 07, 2009
Bendel Vineyard Feasibility Study – Lagos Nigeria
Starting your own wine business is not the everyday business opportunity that everyone can simply jump into, because there are many aspects to consider in starting a winery. Conceivably the most fundamental problem an entrepreneur will face after expressing an interest in starting a new business or taking advantage of visible opportunity in an existing business or entirely new venture will be to conclude the feasibility study of the proposed venture and that study is simply the evaluation of a plan intended to determine the complexity in carrying out a selected task. (Hisrich, et al, 2008) Before committing time and energy to preparing a business plan, the entrepreneur should do a quick feasibility study of the business concept to see whether there are any possible barriers to success (p. 204). In general the feasibility study paves the way for technical and project development implementation. One may wonder why take on a risk venture that is not the type of business that everyone would want to jump into; well, the answer is simply passion, the kind of obsession that generally drive people like myself who is not looking to becoming a multi-millionaire five years down the road. Demand - Given the insatiable taste and demand for alcohol and beverages in Nigeria, I have chosen Lagos Nigeria as the appropriate location for my new venture – Bendel Vineyard. Demand for wine is driven by the restaurant and hotel industries, the level of entertainment spending, and consumer income. There are currently more than fifteen beer breweries in the country. (Obot, et al, 2002) By 1988 there were 13 winemakers and spirit distillers in the country. Both in terms of production volume and revenue, substantial increases were recorded between 1985 and 1988. However, like their beer counterpart, the spirit and wine industry was damaged as a result of the economic collapse which started in the 1980s (p. 2). Nigeria is a country of over 150 million people and the more reliable population figure of Lagos is given by the Lagos State Government as 17,553,934, based on well conducted census for social planning; it is the largest business and industrial city in Nigeria. More than 90% of the current wine consumed in the country is imported with majority of it coming from South Africa, China, and Europe. The demand for alcohol, particularly western alcohol and beverages continue to rise. This is due in part to the striving democracy in the country. The country abandoned military dictatorship more than ten years ago and the social-economic and political atmosphere have brought about a total revitalization of the nation’s economy. All the negative economic policies there were imposed during the series of military regimes have been replaced with policies that encourage local and foreign capital investment. Once again, the oil industry is striving and the standard of living continue to improve Objectives – Having traveled three times to Nigeria in the past nine months for the purpose of gathering information regarding Bendel Vineyard, I have concluded, in collaboration with couple friends and relatives who would-be partners in the winery venture that Lagos Nigeria will be the perfect place to implement the Vineyard. The objectives of this study are to identify a suitable location, identify the market, and identify the source of grapes and “concentrate” supply until the grapes are mature and ready to be harvested. Also, the objectives include resources such as labor, land, and capital; likely entry barriers and modern production technologies and quality control in the wineries. Market – Nigerians consume a great deal of alcohol for almost every occasion. Weddings, funerals and burial ceremonies, routine socialization and all holidays demand significant use...