Business Method and Procedure

This document provides a comprehensive guide on business methods and procedures, including topics such as business plans, market research, SWOT analysis, target marketing, and more. It also includes a case study on Allan Reeder, a supplier of dairy products in the UK.

Business Method and
Procedure
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Table of Content
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Business plan...................................................................................................................................3
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
A business plan is a document in writing which consist of goals and objectives as these
need to be achieved within set time frame (Burns & Dewhurst, J. (Eds.). (2016)). In other words,
it is a formal document which provide necessary details of nature of a business and background
information which set various financial strategies so that targets could be attained in a proper
time period. This require the firm to make proper planning regarding the resources, financial
structure and many more in order to generate greater returns. This report is based on Allan
Reeder which is a supplier of dairy products as it is situated in United Kingdom. It provides
several merchandises such as cream, butter, cheese, juices and bread. The firm provide greater
assurance about the quality as it has purity and natural flavoured in their offerings. This report
comprises of overall business plan that provide information related to its vision, mission and
goal, financial status, its competitors, target market. It also involves several strategies to gain
competitive edge and SWOT analysis and action plan that assist the firm to make a best decision
by analysing these factors and provide them to gain capture large market share.
Main body
Business plan
Executive summary: Allan Reeder is a small sized company which is a supplier of dairy
products such as cream, butter milk, cheese, bread and juices among their customers (Cho, Wi,
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Chang & Kim, (2019)). This emphasise on rendering fast and efficient delivery of such
merchandise among their respective clients so as to gain more satisfaction. It also supplies its
products amongst well known bakery shops and hotel and coffee shops as it believes on
providing natural ingredients which are of excellent quality.
Vision: The vision of concerned firm is to be the most loyal and valuable business in the
world as it serves their employees and shareholders by providing them with greater value so that
they could generate greater return on investment as it provides an extensive growth to the
company. It aims to provide better experience to their clients and delivering them excellent
quality of offerings.
Mission: The mission of Allan Reeder is to ensure quality specifications among their buyers
as it provide natural flavoured products that create differentiation in their merchandise from
others as their emphasise is on customer focused by fulfilling their expectations and
requirements in a society. The staff are highly committed towards their objectives as they work
hard so that their targets could be met within respective time period.
SMART Objectives
 To increase the sales by 10% within twelve months which in turn maximise the
profitability of a company over a marketplace.
 To provide training amongst personnel for three months so as to accelerate the
knowledge base and skills which improve the overall efficiency.
 To invest more on expansion so that it would become the prominent leader of a market as
it maximises the market share.
Market Research
SWOT analysis: This analysis determines both positive and negative aspects of a
business which help in identifying strength and make best use of opportunities by combatting
threats present in the marketplace (Dan, Lior, & Daphna, (2016)). This analysis provides the
internal capabilities of a firm and determine the availability of resource which facilitate decision
making. With reference to Allan Reeder, the same is elucidated below:
Strength
 Strong global presence: Allan Reeder supply its merchandise in different regions of a
country and customer build a trust on its items which create a greater presence in UK.
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 Reputed firm: The concerned firm has brand equity and loyal customers as their focus is
mainly on quality which create loyal customers around the globe.
 New merchandise: In an era of globalisation, Allan Reeder would produce new
merchandise as there is growing demand of dairy products which accelerate the sales
within the confines of dairy industry.
 Cordial relation with suppliers: Allan Reeder maintains effective relation with its
suppliers that provide emerging trends and other related information which assist the firm
to maintain a balance between demand and supply over a marketplace.
Weakness
 Limited products: The concerned firm provide fewer offerings which is one of the major
weakness of the firm (Gabler, Panagopoulos, Vlachos & Rapp, (2017)).
 Improper use of funds: The manager of Allan Reeder does not make financial planning
in an appropriate manner which decline in current assets and reduces its efficiency.
 Lack of investment in technology: The firm does not emphasise on proper research and
development which create market gap and minimise the team spirit.
Opportunities
 Skilled workforce: Allan Reeder follow proper recruitment and selection procedure and
attract the talent of workforce which improve the overall business performance.
 Follows upcoming trends: The senior authority of Allan Reeder would emphasise on
trends in consumer behaviour by interacting them which aids the company to maximise
the sales.
 Innovations: The concerned firm would create more awareness about its products
through online platforms such as Facebook, Instagram and its respective website which
decrease the cost on advertisement and thus increase the sales and help in maintaining
significant brand image.
 Concern towards environmental aspects: The top manager of Allan Reeder put more
focus on environmental awareness by eliminating the use of plastic and encourage the use
of wax and carboard.
Threats
 Emerging competitors: There are giant number of players of Allan Reeder which possess
a greater threat for the company which has impact on its sales and profitability.
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 Impact of Brexit: The exit of Britain from European Union, namely Brexit has created an
unimaginable chaos that adversely affect the operations of a company in case of such
dairy company (Johnson & Garvin, (2017)).
 Pandemic: The impact of corona virus is deepened and widespread which result in
declining the sales and profit margins and reduces the effectiveness of a company.
Target market: There are three approaches of target marketing such as segmentation,
targeting and positioning as these help the firm to make proper planning regarding which is a
key factor in case of marketing. There are several features or attributes such as perishability,
homogeneity and inseparability. The top management of Allan Reeder would divide the
market which perceives a product on the basis of customers demand.
Segmentation: This involve the process of division of market on the basis of particular group
of customers which outline the overall strategy of marketing. Different people have its different
perspectives so the manager of Allan Reeder would identify the needs and wants of customers
which involve several buying behaviours and provide them with merchandise or services
accordingly. They would focus on appropriate marketing plan so that business objectives could
be achieved successfully. The bases of segmentation are presented as follows:
Geographical segmentation: This strategy focuses on division of market in accordance of
countries, region, states or cities and towns which provide a measure to the firm to identify the
needs of a market (Katz, J. A., & Green, R. P. (2018)).
Demographic segmentation: This involve the study of population through several attributes
such as age, gender, marital status, income, family size and occupation. The manager of Allan
Reeder would provide products to all individuals which develop positive attitude and confidence
among them.
Psychographic segmentation: This factor provides necessary details regarding the attitudes
and values of customers, level of motivation, and emerging lifestyles which is interlinked to
buying behaviour of consumers. Allan Reeder provide value proposition of products or services
among their clients and develop greater belief in them.
Targeting: This is second component of marketing as it focuses on particular group of
individuals and gather more and more information of present and past data so that they could
make prediction for future (McKeever, (2016)). There are various alternatives available to
marketer which identify the particular group of customers and focus on strong marketing
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campaigns so as to make them aware of it which boost the sales. The senior executive of Allan
Reeder provides products for all groups and use natural ingredients and serve their customers in
a best efficient manner. The manager of respective firm would create slogans and advertisements
through online platforms which generate a significant image in a market. Also, the firm would
focus more on building trust among the buyers as in a modern era customer are strongly
preferred about the quality of merchandise and price is secondary importance for them.
Positioning: This means creating a distinct image of a brand in such a manner that customer
perceives a different value of it. Positioning play an important role in persuading buyers to
acquire a merchandise and also it provides assistance to gain an edge and create a brand value in
the minds of potential customers (Moreno-Izquierdo, Ramón-Rodríguez & Perles-Ribes, (2016)).
Allan Reeder has a strong position in a market as it has maintained mutual relation with suppliers
that provide easy availability of products in accordance of requirements as it build customer
loyalty. The ways of doing positioning in a market is given below:
Positioning against competition: Allan Reeder would prepare a strategy so that it could
occupy the maximum share of market and create a uniqueness in their products which aids in
achieving rivalry edge in a marketplace.
Positioning by comparison: The market would compare several factors and attributes of
merchandise with other brands such as cost, promotion and many more that provide a method to
gain brand positioning at a global level.
According to class of consumers: The merchandise or service provides by Allan Reeder are
uniform and consistent which help it in making a unique positioning in a marketplace.
PESTLE analysis
Political: UK has great political stable country in the world. The uniform ruling party would
help the firm to implement same policies and procedures which facilitate smooth operations of a
business (Ward, (2016)).
Economic: This cover several elements such as monetary and fiscal policies, inflation,
corruption and many more. Foreign Direct Investment (FDI) would provide an opportunity to a
firm to generate multiple streams of revenue and create a positive reputation at an international
level. But at the same time, pandemic of corona virus results in declining the productivity of a
company.
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Social: The population of UK are diverse in nature as they prefer high class living and are
more educated. By looking this in mind, the senior authority of Allan Reeder greatly focus on
quality of merchandise and various norms and ethics which satisfy the needs and wants of
clients.
Technological: UK has great technical awareness around the globe. the top manager of Allan
Reeder would use new and innovative machines which simplify the overall working procedures
and reduce the workload on staff (Zhao, Zuo, Wu, Yan & Zillante, (2016)). Also, they are
efficiently trained so as to handle sophisticated machines which maximise the efficiency.
Legal: These includes factors such as antitrust laws, discrimination laws, copyright and
patent, trademarks, and many more. The supervisor of Allan Reeder implements employment
laws, food and safety laws which promote the greater interest of workers which in turn increase
the level of job satisfaction and employee retention for a longer time period.
Environmental: The senior management of Allan Reeder provides greater protection towards
environment as it uses renewable source of energy and lower carbon footprints which help in
achieving sustainable development for a long term. They also eradicate the use of plastics so that
could provide greater concern towards environment.
Marketing plan: This involve the formulation of a strategy so that task which provide
several bases of actions so that goal could be achieved within a respective time period. It
provides several tools and tactics which aids the firm to gain a prominent position. With
reference to Allan Reeder, the elements of marketing mix are described as follows:
Product: The firm renders several varieties of merchandise such as cream, milk, eggs, juices,
yogurt, bread and other organic items. The firm has expanded its product line and provide
delivery of goods in a respective place.
Price: The manager of concerned firm emphasises on keeping its price low without
compromising on quality and provide cost advantage to them so as to make them feel delighted
and happy. This accelerate the sales of a merchandise and thus improve the productivity.
Place: The firm is headquartered in UK but it provides its services at different locations and
also it renders online facilities to their customers which provide greater accessibility to them.
Promotion: The marketing campaign of Allan Reeder is great as it influences its buyers
through advertisements and social media platforms (Zhou, Song, Ren and Wen, 2016). This
saves cost and time and as the greater force is made on sale.
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Process: The manager follows a proper hierarchy and systematic procedure which help in
addressing their clients in an efficient manner. They provide speedy delivery and employs
talented and competitive staff so that they could handle the grievance of customers in quicker
manner.
Physical evidence: The product would be easily available in a respective stores and proper
arrangement of items in their shelves would attract the attention of buyers and create more
visibility of it. They also could navigate their merchandise in an appropriate manner which help
in availing better facilities among them.
People: This involve staff or personnel who are working in an organisation as they are
responsible for the success of a corporation. The senior executive of Allan Reeder would recruit
best potential applicant for their company who could work with zeal and enthusiasm by
promoting excellent ideas which provide greater value proposition to the firm. They also handle
complicated issues and are ready to accept challenging task which ensure a vast growth of a firm.
Porter’s model
This consist of five components which assist the firm to determine the level of
attractiveness and profitability in a market. In other words, it provides several ways to a
company to gain competitive advancement over a marketplace. In the context of Allan
Reeder, the same is given beneath:
Threat of new entrants: The power of this force is regarded to be more. There are chances
that new entrants would bring new and advanced ideas that adds value towards their customers.
Allan Reeder could focus more on innovation and conduct an extensive research so that they
could identify the taste and preference of customers which allows them to enjoy greater economy
of scale in case of dairy industry.
Bargaining power of suppliers: The magnitude of this force is acknowledged to be low due
to the reason that there are numerous suppliers present in a market which provide same offerings.
So, the manager of Allan Reeder would create a strong network with its suppliers and acquire
raw materials in a bulk so that cost of production is minimised and thus raises the profit margin
in case of dairy industry.
Bargaining power of buyers: The extent of this element is usually low. The senior authority
of Allan Reeder would build large base of customers by rendering them with new and innovative
merchandise and providing them with attractive offers which enhance greater productivity.
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Threats from substitutes: This element of Porter’s model tends to be low because there are
several alternatives present in the market which provide similar merchandise. So, the manager of
Allan Reeder would create product differentiation that provide core value among their
customers. This inculcate confidence among them and help in gaining rivalry edge within a
market.
Rivalry among existing firms: This component is low because there are various competitors
which possess a threat for the firm. Allan Reeder could plan to collaborate with its rivalries
which maximise the size of market and provide sharing of resources as this help in
accomplishment of goals within a limited period of time. This help the concern firm to achieve
sustainability for a longer time and provide huge capital resources so that they could focus more
on expansion, diversification and modernisation of a firm within confine sector of dairy industry.
Therefore, it has been comprehended that Allan Reeder could provide cost efficient services
and excellent quality of merchandise which assist the firm to gain a strong rivalry edge. This
bring proper coordination and improves the overall productivity and maximise the sales of a
company.
Financial planning
Financial planning is very significant to a business as it involves the expenditure incurred in
day to day operations of a business. They must make optimum utilisation of such resources and
make proper planning and make budgets so that they could get an idea regarding its investment.
The manager of Allan Reeder would make an effective strategy so that it could judiciously utilise
its cash and would maintain strong distribution of network which create major chances of
success in future.
Specifics Amount (£)
Latest technologies 53000
Promotional strategies 41000
Product development resources 74000
Training and development 10000
On the basis of above estimated budget, it has been determined that Allan Reeder would
incur most of the expenses on new and innovative technology so as to attain a great rivalry edge.
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In an era of globalisation, it is necessary to use advanced technology in operations of a firm
which help in gaining maximum exposure of a firm in a marketplace. Also, the firm would spend
more on product and services as this provide more satisfaction level among their clients.
Investors: Being the reputed firm, its strong network and greater value would provide an
opportunity to investors to invest on it as it provides maximum returns which depict a true and
financially sound of the company. They profitability ratio is greater which improve the overall
performance of a firm and create goodwill across the globe.
Action plan: The respective firm would take immediate action for reaching their
predetermined goals. They emphasise on comparing the actual performance with standards by
judging the accuracy and take corrective action if it found any sort of deviations.
CONCLUSION
From the above report, it can be summarised that it is necessary for firm to prepare an
effective business plan for accomplishment of objectives. It has been analysed that SWOT
analysis would assist the firm in taking best decision which provide a way to gain competitive
advancement within a marketplace. Several elements of marketing mix such as product,
promotion, price and so on is also discussed in this report. The targeting approach is analysed
which depict a significant positioning of a firm in a marketplace.
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REFERENCES
Books and Journals
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan
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entrepreneurs, scientists, managers and students. World Scientific.
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environmentally sustainable business plan: An international B2B case study. Corporate
Social Responsibility and Environmental Management. 24(4). 261-272.
Johnson, J. E., & Garvin, W. S. (2017). Advanced practice nurses: Developing a business plan
for an independent ambulatory clinical practice. Nursing Economics. 35(3). 126.
JUKOVA, E. E., ILINA, I. Y., GUNDARIN, M. V., POTEKHINA, E. V., MISANOVA, I. N., &
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Katz, J. A., & Green, R. P. (2018). Entrepreneurial small business. McGraw-Hill Education,.
McKeever, M. (2016). How to write a business plan. Nolo.
Moreno-Izquierdo, L., Ramón-Rodríguez, A. B., & Perles-Ribes, J. F. (2016). Pricing strategies
of the European low-cost carriers explained using Porter's Five Forces Model. Tourism
Economics, 22(2), 293-310.
Sarsby, Alan. SWOT analysis. Lulu. com, 2016.
Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Zhao, Z. Y., Zuo, J., Wu, P. H., Yan, H., & Zillante, G. (2016). Competitiveness assessment of
the biomass power generation industry in China: A five forces model study. Renewable
Energy, 89, 144-153.
Zhou, S., Song, G., Ren, Z. and Wen, B., 2016. Nonlinear dynamic analysis of coupled gear-
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