Business Plan and Market Research for New Company

This assignment provides a detailed business plan and market research for a new company, including the calculation of a budget of £20,000. It also touches on the importance of ethics in business, employment laws, equality, and diversity policies. The report concludes with a summary of the findings and recommendations for the startup.

Business plan

Table of Contents
INRODUCTION..............................................................................................................................1
TASK 1............................................................................................................................................1
Business Overview......................................................................................................................1
Location of business....................................................................................................................1
Visual identity.............................................................................................................................2
Business values...........................................................................................................................2
TASK 2............................................................................................................................................2
TASK 3............................................................................................................................................3
TASK 4............................................................................................................................................4
TASK 5............................................................................................................................................5
CONCLUSION................................................................................................................................7
.........................................................................................................................................................7
REFERENCES................................................................................................................................8

INRODUCTION
A business plan is a written description of your business's future. It is a written document
that describes the plans for various department such as finance, marketing and operational
department (Fernández-Guerrero, Revuelto-Taboada and Simón-Moya, 2012). Usually, It is
prepared for a new business but it can also be prepared for an existing business. The chosen
company in this report is “Foodie Point”. Foodie Point is a new small company located at
London, United Kingdom. This report is divided in five task. First task provides the overview
of the business and visuals identity etc. Second is related market research for the newly
business while the third task tells about the ethical dilemma and ways to solve the ethical
dilemma. At last report provides about application of laws, rights of the employees and assets,
liabilities, expenses, gains.
TASK 1
Business Overview
“Foodie point” is the small food business which relates to “FMCG industry”. Food is
the essential part of every day life. Hence,Demand of food items are always be in the market.
Street food is a very current and popular tendency which definitely works in organisation favour.
Foodie point is a street food stall operated in a van (vehicle) serving authentic food. The first
priority is to provide good quality food, because, good health of people are depending on food
which they eat. Food is prepared by the experience person by using fresh vegetables & others
fresh ingredients. Foodie point will provide food on demand, so that no wastage is there. The
company is looking forward to opportunities for growing its business all over the UK (Burns and
Dewhurst, 2016). There is a proper system of cleaning and disposal of wastes which will happen
at the time of preparing food. Sales of organic food and drink in the UK rose by 6% last year to a
record £2.2bn, stimulate by strong growth through independent outlets which rise faster than
rival supermarkets (Statistical data, 2018).
Location of business
To start a new business, important thing for any business is the location. The success &
survival is dependant on the location so that target customers can be achieved. There is various
place but London is best for starting food business (Feenstra, 2014). As the UK’s foodie capital,
residents and tourists are always on the lookout for exciting new foods to try. Here, location is
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the streets of the London and also in holidays, Foodie point will serve the food on beach near
to London through food van. The delivery through food van will allow the organization to
analyze the market without spending large costs for acquiring or rent a place. Foodie point will
buy a place at a later date after attaining the stability & reputation in the business.
Visual identity
It is very important for any start up to use a unique & attractive visual identity to attract
the people and to increase business reputation in front of customers. It will be something that has
an indication of business which “Foodie point” will operate. It is a logo and symbol by which
organisation business represent itself to the public. Logos of some existing business are as:
Business values
For any business, there should be a contribution towards the public for which any
organisation works (Shelton, 2017). Therefore, Foodie point is planning to serve free food to the
orphans & homeless child at every weekend. It is also planning to give its certain amount of
earnings for some donation to educational institute for better education of children who have not
afford better quality education. It is strictly follow the policy that ensure that good quality food
must be delivered by ensuring & review the quality before final dispatch of food to public.
TASK 2
Market research will provide a clear picture of taste and demand that is being preferred
by the target customers to the “Foodie point”. It will help the organisation to help the customer
better.
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 The primary research will be carry out through questionnaires to certain number of
people. The other way to do primary research will be through conducting surveys about
the demand in the foods that the customers in the market are have currently. This research
will help the Foodie point to analyze the requirements of the customers. The company
may ask about the choice of customers in the foods, whether they like fast food or
ordinary food and what's their opinion regarding organic food etc. Questionnaire
techniques gives appropriate data (Jones and Penaluna, 2013).
 After primary research, organization need to do secondary research in which it should
review the trends, methods, marketing strategies and other aspects followed by various
competitors such as Jamon Jamon, Lucky Chip and On Cafe etc. This research will give
you an idea that how to build a competitive advantage that is not available with
competitors and what strategies should require to be developed for attracting target
customers.
 Quantitative research includes customer surveys and questionnaire. Questions includes
in survey needs to be carefully considered so that results provides meaningful data. After
collecting the data, it should be co-relate with the business and analyze it as well. For
example, if foodie point is planning to start the business then it can ask question about
what type of foods are in priority list of the public and accordingly, take it into
consideration .
 Qualitative research is a methodology which focuses on people feel about the
organization. It should be conducted to know that what people think and why they make
certain choices. For instances, If anyone will start the new street food stall what is the
reactions of people on it. Therefore conducting qualitative market research is necessary
for knowing the choices of public and plan work accordingly to the development of
business.
TASK 3
Before doing this task, firstly understand ethical dilemma which is as:
Ethical dilemma is a situation when a person has to choose between two possible alternatives
course of actions (problems) that are equally undesirable.
Case:
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Foodie point is stuck in dilemma, whether to accept an offer from a popular website to
promote the its business at a discounted rate even after knowing the fact that there have been
reports of discrimination, bullying and harassment by the management for website company
(Thébaud, 2015). But there is a great opportunity for growth of business with a risk associated
with this company that it may damage brand or demotivate the staff of Foodie point.
Conclusion:
Foodie point is a new company which means that it is yet to gain popularity among the
people of London. A new organization should always do business in ethical way to gain brand
image in the eyes of public. In the given case, Foodie point should not get into a contact with
the website company even when the company will make it popular. The reason is that website
company will damage the brand of Foodie Point. It is not good for any start up business to have
link with such a company which image is not satisfactory, this will give negative impact of the
newly start business in the minds of public.
Another case study of ethical dilemna which can help in attaining relevant decision is
mentioned as follows. Mr. Z has recently started working in a company and he found that CEO
of the company has been stealing the company's money. Employee Z was confused as to whether
he should remain quiet because of fear of losing the job for complaining against CEO or should
report this matter to his board so that company could take corrective measure to save the
company from such CEO.
At last Mr. Z decide to gather evidence and after this, went to the boards. The boards
gave an opportunity of being heard to the CEO for showing any proof of evidence but the CEO
failed to produce any evidence and was fired by the board.
The values of “Foodie Point” is to provide quality foods and to give some part of its
earnings to the educational institute for improving education standards. It will also plan to give
food free to orphans & homeless children at weekend.
TASK 4
It is mandatory for companies in UK to follow to certain practices so that discrimination
at the workplace is reduced. Currently Foodie Point is now able to employ two members in its
staff on zero-hour contracts. Therefore, the company should comply with Equality and Diversity
law as practiced in UK. Equality and Diversity is a term referred to define equality, diversity and
human rights at the workplace. This means that, all the workers in Foodie Point including the
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zero-hour contracted employees will be treated equally and given equal opportunities for
achieving their individual targets. The work environment will be free from any kind of
discrimination or harassment (Ward, 2016). As per UK has Equality Act, 2010, An equality and
diversity policy should be created for healthy environment in the company and it should be
followed by every company operating in UK.
Some rights should be given to new employees for betterment of employees which are as
follows:
 Right to get at least national minimum wages.
 Right to get sick pay.
 Right to take unpaid parental leave.
 Right to access to a grievance at work.
 Protection from unauthorized deduction from salary.
 Protection from gender discrimination.
 They have right from unfair termination of employment.
 They will have right to take leaves in case of emergencies but the employer must be
informed before or after the emergency.
In the case of Domino's pizza vs Employees, the employees on zero-hour, approx 40 staff
member went on a strike against the low wages & wanted to use of zero-hours contracts. The
demand of employees were to increase the wage to 12 per hour and to provide more secured
working hours and recognition.
The conclusion of the case was that Domino's pizza now offering fair wages to the
employees and also accepting their terms on secured working hours. Further, it has started to
provide an option to shift to guaranteed-hours contracts.
TASK 5
Foodie Point has the following assets, liabilities, expenses and gains:
Assets
 High Speed Crushing Machine
 Double Layer Warming and Mixing Machine
 Van
 Stove
 Cash
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Liabilities
 Loan from bank
 Long-term borrowings (unsecured)
 Creditors payable
Expenses
 Sugar
 Vegetables
 Salt
 rent for place
 other ingredients
Gains
 Sales revenue
Foodie Point should forecast a cash requirements, track the stock records, keep on top of
payments, access the credit etc. to avoid any cash flow problems. Cash budget should be
prepared for resolving the cash flow problems. Further, by maintaining proper accounts will
help the company in maintaining the cash flow problems so that company can focus on its
profits. By preparing more than one cash flow projections, Foodie Point can protect itself against
any unpleasant surprises. If they prepare three projection of cash flow that is for a best case
scenario, a worst case scenario, and a middle of the road scenario, then they can easily protect
themselves from undesired events. A budget of 20,000 have been provided below:
Budget
Particulars Amount
Van £4,880.00
Rent for place £1,000.00
Other assets £2000.00
Raw Material purchased £4,480.00
Inward Wages £2,910.00
Pre operative expenses £1,150.00
Electricity and water expenses £1,100.00
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Legal Expenses for incorporation of company £1,340.00
Repair and Maintenance Expenses £1,140.00
Cash required in business £20,000.00
CONCLUSION
From the above report, it has been concluded that a business plan is important before
starting a business as it provides details about achieving the goals of the organization. Further,
market research plays a vital role in ascertaining the customers needs for the products which an
company wants to produce . Along with this, a new company should also be ethical,avoid itself
getting into any ethical dilemma and should follow the relevant practices. Along with this, it
should have the knowledge about employment, equality and diversity laws that may be
applicable on the company, also may have an equality and diversity policy as per the law of that
country in which it wants to start new business.
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REFERENCES
Books and Journals
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Feenstra, D., 2014. The Standout Business Plan: Make Irresistible-and Get the Funds You Need
for Your Startup or Growing Business. Journal of Applied Management and
Entrepreneurship. 19(4). p.116.
Fernández-Guerrero, R., Revuelto-Taboada, L. and Simón-Moya, V., 2012. The business plan as
a project: an evaluation of its predictive capability for business success. The Service
Industries Journal. 32(15). pp.2399-2420.
Jones, C. and Penaluna, A., 2013. Moving beyond the business plan in enterprise education.
Education+ Training. 55(8/9). pp.804-814.
McKeever, M., 2016. How to write a business plan. Nolo.
Shelton, H., 2017. The secrets to writing a successful business plan: A pro shares a step-by-step
guide to creating a plan that gets results. Rockville, MD: Summit Valley Press.
Thébaud, S., 2015. Business as plan B: Institutional foundations of gender inequality in
entrepreneurship across 24 industrialized countries. Administrative Science Quarterly.
60(4). pp.671-711.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Online
Total turnover of UK restaurants. 2018. [Online]. Available through
:<https://www.hospitalityandcateringnews.com/2013/06/uk-branded-restaurant-market-
to-grow-by-5-6-billion/>.
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