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Question 1 ABC Enterprises Ltd ABC Enterprises Limited, an indigenous company, was incorporated in 2009 by Mr. Kenna and Mr. Buga to process coffee into
Question 1 ABC Enterprises Ltd ABC Enterprises Limited, an indigenous company, was incorporated in 2009 by Mr. Kenna and Mr. Buga to process coffee into different products. ABC is located in Mityana town, one of Uganda's leading coffee producing districts. It employs a cross-section of Ugandans in the following departments processing, transportation, drying and marketing coffee products. Although ABC is located in Mityana, it gets coffee from other coffee producing districts of eastern. western and central Uganda. Mr. Buga and Mr. Kenna invested huge capital in purchasing modern machinery including coffee hullers, processors and driers. This enabled them to produce high quality brand coffee such as ABC instant Coffee. They also purchased the land where they set up the factory premises. ABC has invested heavily in research and development which has helped in minimising competition from other coffee processOrs. This has enabled the enterprise to attain superior skills in using e-commerce that has seen the company improve on their marketing strategies. The designed vibrant marketing strategies have helped in attracting a large customer base in the neighbouring countries of South Sudan, Rwanda. Burundi and Democratic Republic of Congo. Although ABC operations have made it a popular enterprise, it still faces high operational costs BSpecially in transportation of coffee from different parts of the country. The company has also recruited many employees without having proper cost control measures. Such costs have caused financial \"hiccups" to the extent that customers in the regional markets no longer prioritise demand of ABC products. The above situation has attracted new entrants into the market. for example Coffee Berry Ltd. Many customers of ABC Enterprises Ltd have shifted their loyalty to products from other producers. It has also been noticed that, globally. there has been a reduction in the number of people consuming coffee due to health concerns. That together with a slowdown in market growth, increases in the foreign exchange rate and high taxes has left ABC Enterprises Ltd in a very miserable state
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