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Case Study: Moolani Foundation - Final Project Submission

1a. Are the environmental conditions in Kenya, India and South Africa conductive to starting the foundation?
The aim of the foundation is provide to undergraduate business student wit the requiered resources to work abroad, and at the same time the foundation is open to find partnet agreements with
microfinance organizations in third world countries to help the lower economic class to start small business.
Kenya, India and South Africa sounds perfect and eligeble for the project due to their rates of poverty and high range of population belong to low economic class.

1b. Which of the countries would provide the best long-term opportunities for the Moolani Foundation?
GDP (mill $)

GDP real
growth
Rate
(%)

GDP per
capita
($/person)

Unemployme
nt
Rate
(%)

Economic Aid
Recipient ($
mill)

Population
(mill)

Labor Force
(mill)

External
Debt
($mill)

Life
Expectancy
(yrs of age)

Literacy
(%)

491,400.00
34,680.00
3,319,000.00

3.50
2.20
6.20

11,100.00
1,100.00
3,100.00

26
40
9

488
0
2,900

44.30
33.80
1,080.20

16.60
11.40
482.20

27,010
6,792
117,200

43.27
47.99
64.35

86.40
85.10
59.50

Country
South Africa
Kenya
India

According with the figures presented in the exhibits, India is the country who fits better the criteria that Moolani Foundation is requering for its project. Below we present a list with the main concepts to choose one
country or the other one.

Cost of
Living

Employment

Microfinance
Institutions

Literacy

Total

South Africa

Exchange
Rate

Kenya

GDP

Country
India

3
1
2

2
1
3

3
1
2

3
1
2

3
2
1

1
3
2

15
9
12

Following the score of the ranking India is the best fit for Moolani project base on:
- The cheapest country on terms on cost of living, so the project expenses will reduce compare other alternatives
- First country in number of microfinance institution, that will provide better knowledge of the project and better options to find a partner
- Low employment rate, show us good background for new projects and business

2. Prepair monthly statement of cash flows as well as the cash budget from Sept 1, 2007, to Aug 31, 2008, for
the internships in South Africa, India, and Kenya

Mar-08
Apr-08

$
$

800.00 $
800.00 $

500.00 $
500.00 $

3,800.00 $

1,600.00 $

1,000.00 $

May-08
Jun-08

$ 800.00
600.00 $ 800.00
600.00

Jul-08
Aug-08

TOTAL

$

1,200.00

###

$ 50.00

$9,200.00

1,600.00 $

1,000.00 $

Jul-08
Aug-08

TOTAL

$

1,200.00

###

$9,400.00

$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
### $ 366.63

25.00 $ 50.00
25.00
25.00
25.00
25.00 $ 50.00

2,115.00
98.33
98.33
98.33
4,148.33
148.33
98.33
898.33
2,798.33
1,998.33
98.33
98.33
12,696.63

Web
Maintenanc
e

$
$
$
$
$

$
$
$
$
$
$
$
$
$
$
$
$
$

$12,696.63

Web

40.00
40.00
40.00
40.00
40.00

Adv.
Material

Paper
Supplies

### $
$
$
$
$

Calls

Copy
Machine

Rent

$ 750.00

3,550.00

$150.00

###

$3,296.63

Misc
Cost

Food

Travel
Expenses

Sep-07
Oct-07
Nov-07
Dec-07
Jan-08 $

Fight
Ticket

SOUTH
AFRICA

$ 50.00
$ 50.00

2,115.00
98.33
98.33
98.33
3,948.33
148.33
98.33
898.33
2,798.33
1,998.33
98.33
98.33
12,496.63

TOTAL

4,000.00 $

$ 800.00
600.00 $ 800.00
600.00

$ 50.00

Web
Maintenanc
e

500.00 $
500.00 $

### $ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
### $480.00

$
$
$
$
$
$
$
$
$
$
$
$
$

$12,496.63

Web

800.00 $
800.00 $

Adv.
Material

$
$

May-08
Jun-08

Paper
Supplies

Mar-08
Apr-08

$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$300.00

Calls

4,000.00

Copy
Machine

Rent

Sep-07
Oct-07
Nov-07
Dec-07
Jan-08 $
Feb-08

$150.00

$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
$
33.33
### $ 366.63

$3,296.63

Misc
Cost

Food

Travel
Expenses

Fight
Ticket

KENYA

$ 50.00
$ 50.00

###

TOTAL

3,800.00

$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$ 25.00
$300.00

Web
Maintenanc
e

$

### $ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
$ 40.00
### $480.00

Web

Jan-08
Feb-08

Adv.
Material

Nov-07
Dec-07

Paper
Supplies

Oct-07

Calls

Sep-07

Copy
Machine

Rent

Misc
Cost

Food

Travel
Expenses

Fight
Ticket

INDIA

###
$
$
$
$

$
33.33 $
33.33 $
33.33 $
33.33 $

2,865.00
98.33
98.33
98.33
3,698.33

898. that it is the selected country.00 $10.00 $ 2.33 $ 33.00 $ 25. .00 $300.00 $ 40. keeping the same exchange of 1 CAD = 8 SAR.00 $ 25.33 ### $ 366. The trend is always up so we can not expect a reduce in the exchange rate for the next couples of years.63 $3.00 $ 1. but Molaani business is other and this kind of risk is too high for some new ventures.00 $ 40.000.33 5.698.33 98.00 $ 40.729.00 $ 2. how would cash flow be affected? Exchange Rate Fluctuations can affect a lot the operations and successful of Moolani Foundation projects.00 $ 40.33 98.33 $ 33.00 $ 1.00 $480.00 750. in order to avoid the fluctuation of the currencies.33 1.000.33 $ 33.296. In order to convince the bank to the acceptance of the credit I would show the numbers above to the bank.00 $ 2.448.000.33 98.00 Mar-09 Apr-09 May-09 Jun-09 $ $ 1.729. 4.33 7.348. We would sell the proyect as a social responsible project where they can be partners and get a global recognition for their social behaviour.00 $ 33.33 $ 33.63 $ $ $ $ $ $ $ $ 148. When and how much money does Moolani need? Provide an explanation why that time and why that much Moolani Foundation should request a credit up to $32.00 Web Nov-08 Dec-08 $ 40.33 98.729. where we indicate our accurate budgets and we should explain to them what is the project we want to launch in India and why we choose India.33 $ 33.00 $ May-08 Jun-08 $ 900.400.600. if four student in total were to take the internship.63 We prepair the statement based on 2 internship to be sent to the selected country.33 $ 33. Before the second year they should invest the money from the credit in a short-term fund in order to get extra capital and arrive to the second year with more experience and better cash flow.96 $19. * Negotiate with a bank an exchange rate insurance.00 7.33 2.00 $ $1.00 $ 25.00 $ 1.00 $ 25.33 3.00 $ 40.33 $ 33.63 $14.00 $ 600.00 $ 25.00 $ 1.96 5.00 1.00 $ 1.096.00 $ 1.00 $ 25.00 $ 25. To what extent should Moolani be concern about exchange rate fluctuations? If the value of the canadian dollar were to decrease relative to the foreign currencies.00 750.00 $ 40.00 $ 25.00 ### $ 40.00 $ 25.600.00 $ 40.96 TOTAL $ Web Maintenance Jan-09 Feb-09 $ 25.000. With 2 students the cost was $12.200. All the expenses of the interns in the inbond country must be done in the local currency and the fluctuation of the currency will affect the cash flow of the foundation.00 $ 40.00 $ 25. how would the finance requierements change. total increase of 7.00 $ 50.200.00 $ 25.00 $ 25.33 $ 33.33 $ 33.33 $ 33.00 $ 40.00 $ 25.33 $ 33.33 14.00 ### $ - $ 50.00 $ 40.00 Jul-08 Aug-08 TOTAL $ 1.00 $ 25.00 $300.33 $ 33.33 98.00 ### ### Jul-09 Aug-09 TOTAL $ $18.33 $ 33.96 - $ 33.00 $ 25.63 while with 4 students the expenses go up to $19. Kenyan Shilling is the currency.33 98. With this trendency where CAD is decreasing relative to foreign currencies we will need more cash to afford our operations for the next years.33 3.00 $ 40. That means.748. We would recommend two possible solutions to Moolani FOundation in order to minimize the problem of exchage rate fluctuations: * Exchage from CAD to Indian Ruppes the amount of money they will need to cover the expenses during the internship in India (see Q2 excell chart). Canadian Dollar $ The most economical country is India.200.33 $ 33.33 $ 33.33 $ 33.00 $ 50. that together with other aspects indicated in Q1 make our choose for India more clear 3. the expenses of Moolani Foundation will be higher with that exchange rate trend. assuming administrative costs remained constant? We calculate the budget assuming that four student participate in the program in India.00 $ 900.33 98. South African Rand seems the most estable currency from jan-2003 to jan-2007.550.600.00 $ 25.400.33 98. They should request the credit in September 2007.00 $ 25.00 $ 50.33 $ 399.498.96.000.800.33 998.496.00 $ 3.329.00 $ 40. Maybe they will lost the oportunity to gain some money for positive fluctuation of ruppee agains CAD. Material Oct-08 Paper Supplies Sep-08 Calls Copy Machine Rent Misc Cost Food Travel Expenses Fight Ticket INDIA 57% $ $ $ $ $ $ $ $ $ $ $ $ $ 148.000.00 $ 40. Make a formal proposal to the bank.33 98.096. out from three.33 $ 33. In the second year.00 $ 600.600. In the case of Indian Rupees the movement from January 2003 to January 2007 represent an increase of 30% of the value comparing with CAD.00 $ 40.00 $150.300 that is the amount to cover the expenses during the first two years.00 $ 25.33 148.00 $ 40.00 $ 40.00 $ 40.00 $150.500.Feb-08 Mar-08 Apr-08 $ $ 1.33 19.200. In that way we will know what is the exchange rate and we plan better our operations on the inbond country.00 $ 3.00 ### $480.00 Adv. with biggest movement in the last years.

00 26 40 9 488 0 2.20 According with the figures presented in the exhibits.20 11.680. India and South Africa sounds perfect and eligeble for the project due to their rates of poverty 1b. India is the country who fits better the criteria that Moolani choose one country or the other one.The cheapest country on terms on cost of living.400.First country in number of microfinance institution.00 3.100. Which of the countries would provide the best long-term opportuni GDP per capita ($/person) Unemployment Rate (%) Economic Aid Recipient ($ mill) Population (mill) India GDP real growth Rate (%) Kenya GDP (mill $) Country South Africa 491. so the project expenses will reduce compare other alternative .900 44.100.00 1. that will provide better knowledge of the project and better .50 2.Low employment rate.00 ### 3.30 33. Are the environmental conditions in Kenya. show us good background for new projects and business .80 1.00 34.100.20 6.080. Cost of Living Employment Microfinance Institutions Literacy South Africa Exchange Rate Kenya GDP Country India 3 1 2 2 1 3 3 1 2 3 1 2 3 2 1 1 3 2 Following the score of the ranking India is the best fit for Moolani project base on: . India and South Africa c The aim of the foundation is provide to undergraduate business student wit the requiered resources to agreements with microfinance organizations in third world countries to help the lower economic class Kenya.1a.

and at the same time the foundation is open to find partnet wer economic class to start small business.792 117. Below we present a list with the main concepts to Total 15 9 12 pare other alternatives the project and better options to find a partner .40 482.20 27. heir rates of poverty and high range of population belong to low economic class.60 11.99 64.South Africa conductive to starting the foundation? quiered resources to work abroad.40 85.35 86.50 e criteria that Moolani Foundation is requering for its project.10 59.010 6.27 47. erm opportunities for the Moolani Foundation? Labor Force (mill) External Debt ($mill) Life Expectancy (yrs of age) Literacy (%) 16.200 43.

d partnet main concepts to .

00 $ 600.00 $ 600.200.2.00 ### ### ### $9.00 ### ### .00 $ 800.00 $ 500.400. India.00 $ 600.00 $ 500.00 $ 800.00 $ 500. 2008.00 $ 800. for the internships in South Africa.00 $ 800.00 Rent Misc Cost Food TOTAL Travel Expenses Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Fight Ticket KENYA ### $ 800. and Kenya Rent Misc Cost Food Travel Expense s Fight Ticket INDIA Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 ### Feb-08 Mar-08 $ 800.00 $ 800.00 $ 800.00 $ 600. Prepair monthly statement of cash flows as well as the cash budget 31.00 $ 500.00 Apr-08 May-08 Jun-08 Jul-08 Aug-08 TOTAL ### ### ### ### ### $9.

Rent Misc Cost Food $ 750.00 May-08 Jun-08 Jul-08 Aug-08 TOTAL Travel Expenses Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 Fight Ticket SOUTH AFRICA ### ### ### ### ### $10.00 ### $ 600.00 We prepair the statement based on 2 internship to be sent to the selected country The most economical country is India.00 ### $ 900.00 $ 900.00 $ 750. that together with other aspects indicated in Q1 make our choo .00 ### $ 600.800.00 $ 750.

296.00 $ 25.00 $ 25.00 $ 40.63 $3.00 $ 40.00 $ 40.33 $ 33.33 $ 33.63 Web Maintena nce Adv.33 $ 33.00 $150.00 $ 25.00 $ 25.00 $ 40.33 $ 33.00 $ 40.00 $3.00 $ 40.00 $150.33 $ 33.00 $300.00 ### $480. to Aug a.00 $ 25.00 $ 25.00 $ 40.00 $ 40.33 ### $366.00 Web Paper Supplies Calls Copy Machine ### $ 40.33 $ 33.00 $ 40. Material $ 25.33 $ 33.33 $ 33.33 $ 33.00 $ 25.33 ### $366.33 $ 33.63 .33 $ 33.00 $ 25.00 $ 40.00 $300.00 $ 25.63 $ 50.00 $ 25.00 $ 25.00 $ 25.33 $ 33.00 ### $ 33.ll as the cash budget from Sept 1.00 $ 40.00 $ 50.00 $ 40.00 $ 25.00 Web Maintena nce Adv.00 $ 40.00 $ 40.00 $ 40.00 $ 25. Material $ 25.00 $ 25.296.00 $ 40.33 $ 33.33 $ 33.00 $ 50.00 $ 40.00 $ 25.33 $ 33.00 $ 25.00 $ 40.00 ### $ 33. 2007.00 $ 25.33 $ 33.00 $ 50.33 $ 33.33 $ 33.00 $ 40.00 $ 25.33 $ 33.00 $ 25.00 $ 25.00 $ 40.00 $ 40.00 ### $480.00 Web Paper Supplies Calls Copy Machine ### $ 40.00 $ 40.33 $ 33. and Kenya $ 50.00 $ 50.00 $ 25.

$ 50.00 $ 40.00 $ 40.33 $ 33.00 $ 40.00 $ 40.00 $ 25.33 $ 33.33 $ 33.33 $ 33.33 $ 33.00 $ 40.00 $ 25.33 $ 33.00 $ 25.33 $ 33.00 $ 25.00 $ 25.296.00 $300.00 $3.00 ### $480.33 $ 33. Material $ 25.00 $ 50.00 $ 25.00 $ 25.00 $ 40.00 ### $ 33.63 .00 $ 25.33 $ 33.00 $ 25.00 $ 40.00 $150.63 ted country indicated in Q1 make our choose for India more clear Web Maintena nce Adv.00 Web Paper Supplies Calls Copy Machine ### $ 40.00 $ 40.33 $ 33.00 $ 25.00 $ 40.33 ### $366.00 $ 50.00 $ 25.00 $ 40.00 $ 40.

496.496.948.33 1.63 $12.33 98.33 12.00 98.TOTAL $ $ $ $ $ $ $ $ $ $ $ $ $ 2.33 98.00 98.63 ### .998.33 898.33 1.33 98.998.33 98.115.696.33 98.33 12.33 98.798.33 98.115.33 2.798.33 4.33 898.33 98.33 2.33 98.33 148.148.33 148.33 98.33 3.63 TOTAL $ $ $ $ $ $ $ $ $ $ $ $ $ 2.

33 998.448.00 98.33 98.63 ### .865.33 14.096.33 2.33 98.33 3.33 3.348.698.33 98.33 98.33 148.33 98.$ $ $ $ $ $ $ $ $ $ $ $ $ 2.

the expenses of Moolani Foundation will be higher with that exchange rate trend. To what extent should Moolani be concern about exchange rate fluct the canadian dollar were to decrease relative to the foreign currencies. That means. with biggest movement in the last years. The trend is alw reduce in the exchange rate for the next couples of years. We would recommend two possible solutions to Moolani FOundation in order to minimize the problem * Exchage from CAD to Indian Ruppes the amount of money they will need to cover the expenses duri excell chart). affected? Exchange Rate Fluctuations can affect a lot the operations and successful of Moolani Foundation proje All the expenses of the interns in the inbond country must be done in the local currency and the fluctu cash flow of the foundation. In the case of Indian 2003 to January 2007 represent an increase of 30% of the value comparing with CAD. South African Rand seems the most estable currency from jan-2003 to jan-2007. in order to avoid the fluctuation of the currencie the exchange rate and we plan better our operations on the inbond country. Maybe they will lost the oportunity to gain some money for positive fluctuation of ruppee is other and this kind of risk is too high for some new ventures. keeping the same ex Shilling is the currency.3. * Negotiate with a bank an exchange rate insurance. out from three. . With this trendency where CAD is decreasing relative to foreign currencies we will need more cash to a years.

In that way we will know what is ntry. order to minimize the problem of exchage rate fluctuations: eed to cover the expenses during the internship in India (see Q2 or positive fluctuation of ruppee agains CAD. but Molaani business the fluctuation of the currencies. Kenyan ast years. In the case of Indian Rupees the movement from January ring with CAD. The trend is always up so we can not expect a ies we will need more cash to afford our operations for the next with that exchange rate trend. how would cash flow be ful of Moolani Foundation projects. . keeping the same exchange of 1 CAD = 8 SAR. he local currency and the fluctuation of the currency will affect the an-2007.ut exchange rate fluctuations? If the value of he foreign currencies.

00 ### $ - .400. if four student in total were to take the internshi requierements change. assuming administrative costs remained consta Copy Machine Rent Misc Cost Food Travel Expense s Fight Ticket INDIA Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 ### Feb-09 Mar-09 Apr-09 May-09 Jun-09 ### ### ### ### ### ### ### ### ### ### ### Jul-09 Aug-09 TOTAL ### $18. In the second year.4.

00 $ 40.33 98.33 98.00 $ 25.the internship.33 148.00 $ 25.00 $ 25.00 $ 25.33 $ 33.748.00 $ 25.00 50.00 $ 40.33 98.33 $ 33.33 $ 33.33 3.33 98.33 19.00 $ 150.33 $ 33.96 ### .33 $ 33.00 $ 25.00 $ 40.33 $ 33.33 1.96 TOTAL 50.00 $ 25.729.00 $ 40.698. how would the finance mained constant? $ $ 50.33 $ 33.33 $ 33. Material Calls $ 40.33 7.00 $ 25.00 $ $1.00 Adv.96 - $ 33.898.00 $ 40.00 Web Maintena nce $ Web Paper Supplies $ 25.00 $ 40.00 $ 40.33 $ 399.498.33 98.33 5.00 $ 40.00 $ 480.00 $ 40.00 $ 25.00 $ 25.329.00 $ 40.00 $ $ $ $ $ $ $ $ $ $ $ $ $ 148.00 $ 40.00 $ 300.33 98.33 $ 33.33 $ 33.00 $ 25.33 $ 33.

Make a formal proposal to the bank.5. When and how much money doe Provide an explanation why that time and why that much .

how much money does Moolani need? at much .