Business Plan for Franks and Johns (F&J) - An Online Retailing Store

This business plan discusses the establishment of Franks and Johns (F&J) as an online retailing store in the UK. It covers various aspects including business description, industry analysis, product description, USP and competitor analysis, sales and marketing strategy, operations plan, risk and contingency plan, and finance and funding plans.

BUSINESS PLAN

EXECUTIVE SUMMARY
Business plan refers to determination of various steps and strategies that will lead to have
successful establishment of business. It also includes consideration towards various aspects and
analysis of many concepts including industry, competitors and various other analysis. F&J is
planning to establish its business as retailing company in UK. Being a competitive market of
retailing industry a detailed analysis will lead to have a framework for making its business plan.
this report will discuss about various aspects of business plan including business description,
industry analysis, products and USP description. Likewise, operation plan, risk and contingency
plan, marketing and finance plan along with management concept and plan will also be
highlighted under this report.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Business plan of Franks and Johns (F&J) (An online retailing store).............................................4
Business details............................................................................................................................4
Industry/Market analysis.............................................................................................................4
Product description......................................................................................................................7
USP and Competitor analysis......................................................................................................8
Sales and marketing strategy.....................................................................................................10
Operations plan..........................................................................................................................11
Risk and contingency plan.........................................................................................................11
Finance and funding plans.........................................................................................................13
Management team......................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

Business plan of Franks and Johns (F&J) (An online retailing store)
Business details
Objective:
To become the customer’s most demanded company with a competitive leader.
Mission:
To raise the experience of customers by enabling an exposure of finding rightest item for
them with easiness. We will use the concept of internet and deliver our services in order to fulfil
the needs of customers.
Location:
Its location would be 75 Gain Ln, Bradford BD4 8DL, UK. However, it will majorly
operate its services on digital and online platform.
Business details:
F&J is planning to establish its business where it can serve the customers on digital and
online platform. It aims to deliver the best services among its customers. it will be a retailing
store wherein customers can make order to groceries and other retailing items. It will work 24*7.
Its presence as per Covid-pandemic will be online and people can download its mobile
application named as FJ from where they can make purchase of any item.
Industry/Market analysis
It is one of the major aspect with regard to establishment of any new business. This means
an analysis of the market and the industry need to be performed before making establishment of
any business. F&J will perform this by adopting:
PESTLE analysis:
Political:
It includes the pressure of political parties, political situation, rules and regulations and
various others (Shtal and et.al., 2018). Brexit is also an important political issue wherein UK
existed from EU. However, F&J being initially operate its services in UK so it will not be
affected at large. But it need to bear the effects of Brexit as high inflation and low expenditure by
customers. this may affect its sales.
Economic:

It includes the economic situation and condition in terms of changes in employment rate,
inflation or deflation, or economic condition too. F&J will be affected in terms of low sales and
revenue because of the existence of inflation and decreasing customer expenditures. Likewise, as
people are making low and wise expenditure so the sales percentage of F&J will be affected but
it would be not too high because of the need of groceries in daily life.
Social:
This factor will work in favour of company because now the people want to purchase
from online rather than retailing stores (Helmold, 2019). This factor become more active due to
covid situation wherein people’s attraction regarding online shopping raised rather than moving
into market. this means that F&J will be positively favoured with this aspect.
Technological:
This factor will also works in favour of company because with the enabling of technology
F&J would be able to better serve its customers. this is because it will use most advanced form of
technology in its business operation and as a result its business will not only be benefitted but its
cost of operation would also be lower down with an increase in its efficiency of operation.
Legal:
It includes the laws and legal compliances. This factor if complied by companies then its
impact will be low and business will not be affected. In case of F&J too a strong compliance of
laws and regulations enable the company to be non-affected with its strong impacts.
Economic:
It includes the environmental factors and aspects. This is also having a major impact over
the company if they are not conscious regarding environment aspects (Khalid and Rahman,
2020). Being a online retailer F&J will able to adopt as many practices that its business operation
will not harm the environment and as a result it will be positively favoured.
SWOT analysis:
This model will enable the F&J to have an analysis of internal aspects of company with
respect to market and industry that whether they can meet the situation or not.
Strength:
It refers to the capabilities of company for handling the external impacts (Vlados, 2019).
Highly customer oriented, innovation’s priority, consumer devoted products and services,
customer price friendly are some of strength which F&J possess.

Weakness:
These are the loopholes and drawbacks of company which may affect its business (Teoli
and An, 2019). Raising cost, low margin of profits, raising expenses are counted as some major
weakness of F&J.
Opportunities:
Post covid opportunities, customer attraction and devotion, high demand of online
products are all such opportunities of market which F&J can grab by its efficient moves and
strategies. This will enable the company to grab success.
Threats:
Raising competition, availability of substitutes, pricing policies are some threats that may
affect the business of F&J. These are needed to be overcome in order to in order to sustain
business.
Industry statistics:
Figure 1Annual retailing sales value
Source: Annual sales value of all retailing in Great Britain from 2005 to 2020., 2021

From the above data and statistics it is clear that the sales value with respect to retailing
sector in UK is raising at a tremendous fast rate. As in 2005 it was 281 million which raised to
436242 million in 2020. This extreme growth in the sales percentage of retailing sector clearly
denotes that the there is wide scope with respect to retailing industries.
This means that the decision regarding the establishment of F&J as a retailing company in
UK will lead the company to grab a good success and achieve high sales and profit percentage.
Product description
It is a major aspect with regard to company. This is because is the only thing by which
company can make customer attracted. With regard to F&J the major product includes every
item of grocery and retailing products. Right from basic necessities till toiletries, personal
hygiene every item will be available over its application and its website.
Ansoff matrix:
It is one of the major model with regard to product and the firm’s growth and
development. It majorly consists of 4 strategies including market penetration in which existing
product will be sold in the existing market. however, in case of market development strategy,
existing product will be sold in the new market. While in case of product development company
focus of selling new product in existing market (Loredana, 2017). On the other hand, under
diversification strategy both the market and the products are new.
Figure 2Ansoff matrix

Source: What is the Ansoff Matrix?, 2021
But in regard to F&J, both market penetration and market development strategies are
implied wherein it will initially sell its existing product in existing market and later it will
diversify its market by selling it to new areas and markets.
USP and Competitor analysis
STP- It is important for F&J to find out their target audience so that their needs are
fulfilled. For that STP is done which is a strategic framework and it helps in finding target
market.
Segmentation- this is first step in which segmentation is done in basis of specific criteria. It can
be demographic, behavioural, etc. so, here F&J will do segmentation on basis of demographic. In
that they will chose age (Mukherjee, 2018).
Targeting- This is done after doing segmentation. In this the criteria followed is on basis of
demographic that is chosen above. Therefore, F&J will target people of age between 23- 45 who
are adults.
Positioning- The last step where positioning of product is done in such a way that it attracts
people. Here, purpose is to create a distinct image in mind of target audience. Thus, F&J will
position themselves in market by giving discounts, offers, etc. on buying products.
Unique Selling Proposition:
It refers to the unique benefits that are being obtained and delivered by company and its
products among the customers. this benefits enable the company to be best and the stand them
out of competition. These unique benefits can be the company’s product quality, quantity,
services and various other.
Figure 3USP

Source: Unique Selling Proposition., 2020
With respect to F&J its USP is its services which will be fast and furious. Its quality
products and fast delivery will also be its USP. With this USP F&J would be able to become the
market player and beat the competition.
Competitor’s analysis:
It is an important aspect with regard to establishment of business. This is because if the
company doesn’t have idea regarding existing competitors then it will not be able to stay long in
market. For this F&J may adopt:
Porter’s five forces:
Bargaining power of supplier:
It refers to the supplier power in terms of affecting prices and affecting companies too by
charging high prices (Bruijl, 2018). With respect to F&J this power will be low because of the
existence of many suppliers in the market with regard to delivery of products. However, in case
of major and big supplier this power will be high.
Bargaining power of customers:
This power is usually high because every customer want to buy best product but at low
price and therefore affect firm’s profitability. With respect to F&J this power will be high
because of the more demand of customers with availing low prices on products.
Threat of substitutes:
This means availability of similar products and substitutes (Mukherjee, 2018). This
would be have a major impact over the company because availability of substitutes will lead to
have decline in the sales of the company. In case of F&J this force will be of high intensity
because being a retailing sector there is an existence of many substitutes products which may put
an adverse impact over the business of company.
Threat of new entrants:
As per the covid pandemic the threat regarding new entrants in the market is low because
of the existence of many restrictions and regulations. This means that after the establishment of
F&J it would be not be afraid of this factor and carry out its business operation smoothly.
Competitive rivalry:

This threat is also high because of the existence of many companies in retailing sector
(Ambarwati and Fathurochman, 2019). Sainsbury, Tesco, Morrison and various other are major
competitors with respect to F&J. these companies are very big companies in terms of good
customer share which may negatively impact the F&J in terms of its declining sales and profit
percentage.
Sales and marketing strategy
Marketing:
It is one of the major aspect because it will lead to have a creation of awareness about
company and its products. This will lead to the actual sales of company’s product among the
customers.
Marketing mix:
It includes the various tactics and practices that will lead to have sale of product of
company. It will lead to have promotion of brand.
Product:
It refers to the physical product which is offered among the customers. It is an important
aspect because it includes the brand and the quality of product (Blut, Teller and Floh, 2018).
With reference to F&J its major product will include groceries and retailing items that will assist
the customers to fulfil their needs.
Price:
It is a crucial element because it denote the value of the product. Company need to be
very careful while determining prices because high prices lead to losing of customers while low
prices affect company’s profit (Ikechi, Chinenye and Chiyem, 2017). With respect to F&J its
pricing will be market price in which product will be sold as per maximum retail price. Although
in initial phase it will enable penetration prices in terms of enabling discounts then later on it will
shift its pricing to market price.
Place:
It refers to physical stores and distribution channel. It is important that the place would be
in customer reach. However, in case of F&J, the dealing of business operation will be performed
online and on digital platform so that it will be in reach of almost every customer at all the time.
Promotion:

This is also a major aspect with respect to F&J. This will lead to have a creation of brand
awareness and popularity in the competitive market (Thabit and Raewf, 2018). In case of F&J it
will adopt the social media promotion by which it would be able to reach and come in approach
with every individual. Likewise, online advertisement and traditional advertisement will also be
followed by company.
Operations plan
There is need to define and specify that how operations are performed in F&J. For that
operational plan is prepared. It specifies what process is to be followed, who will do what, etc.
Likewise, for F&J the operation plan is developed.
Production process- the resource needed for each department is mentioned in it.
T&D- Highly skilled and experience staff who can deliver goods and also perform retail
operations
Marketing department- they need access of website to process order and deliver it to people.
IT department- they need to maintain the app and website so that it works properly and there is
not technical issue which can occur in it (Loredana, 2017).
Finance department- It require to record daily transaction and also calculate profit and loss. They
also need to maintain budget and allocate funds according to requirement
HR department – It is most important department as they hire staff and provide them training to
perform business operations.
Risk and contingency plan
In a new business there may occur various types of risks which can result in failure of
business if not properly managed. Therefore, in order to find out risk and mitigate it there is risk
and contingency plan which is developed. In this plan it includes various strategies and measures
that is taken to mitigate the risk (Helmold, 2019). Thus, with help of plan business can be
properly managed and operated. However, there are different types of risks which can occur such
as financial, HR, operational, etc. Therefore, risk plan is discussed as below :
Area Risk Degree of risk Mitigation strategies
Financial risk: there may
be lack of funds or
capital to run business
Bad depth investment High Credit insurance to
protect bad depth
investment

operations
Technological risk:
There may occur
technical errors in
website of business.
Failure of website to load Low Time to time
maintenance of
website can be done
Hardware malfunctioning
in which system can stop
functioning properly
Moderate All the hardware’s and
other systems should
be tested and checked.
Also, there is need of
back up of system
failure.
Health and safety risk -
Staff can get sick due to
covid 19
The staff while delivering
products or selling it may
suffer from covid 19.
High By providing them
PPE kits, face shield,
gloves, etc.
Economical risk- due to
Brexit F&J may not be
able to sustain in market
for long term.
The brexit can highly
impact on F&J operations
and growth. They need to
work as per UK laws and
policies
High This can be mitigated
by forming flexible
laws and policies.
In order to mitigate the above risk there is need to develop contingency plan. Hence, the
plan consist of measure which are explained as :
Risk event Response Contingency plan
Bad depth investment Test prototype Claim insurance against bad
depth
Failure of website to load Test prototype Update website from time to
time
Hardware malfunctioning in
which system can stop
functioning properly
Select reliable vendor and test
the systems
Order replacement
Impact of brexit Test prototype Develop plans and take

decision in proper way.
Finance and funding plans
There is need of proper funds and finance in order to start a business. This is because if
sufficient funds are not available then it may impact on business operations. Along with it, with
proper funds budget is prepared that include all expenses and profits. On basis of that profit and
loss is calculated. Thus, for present business the finance plan is as below:
Cash flow Analysis
January February March April May June July
Cash at Start
of Month 8,000 12,000 9,000 15,000 13,000 17,000 10,500
Cash Coming In
Services
(75%) 3,500 3,500 3,500 3,500 3,500 3,500 3,500
Cash Sales 2,500 4,000 7,000 10,000 12,000 10,000 13,000
Loans 9,000 0 0 0 0 0 0
Total Cash
In 18,500 11,000 14,000 17,000 19,000 16,500 19,500
Cash Going Out
fixed
Expenses 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Rent 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Salaries to
employees 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Insurance 1,500 0 0 0 0 0 0
Advertising 150 180 200 150 160 140 120
Accounting 120 120 120 120 120 120 120

Miscellaneous 0 0 0 0 500 0 0
Loan
payments 150 150 150 150 150 150 150
Total Cash
Out 11,955 10,485 10,505 10,455 10,965 10,445 10,425
Cash at End
of Month 6,545 515 3,495 6,545 8,035 6,055 9,075
Expected balance sheet at the end of year:
Balance sheet
Particular Amount Amount
Assets
Shop fitting 15000
bank 5000
cash 9000
debtors 11000
CL stock 9000
Total assets 49000
Liabilities
Creditors 11000
Capital 25000
Less: Drawing 5000
Add: net profit 18000 38000
Total liabilities and
equity 49000
Management team
There is need to develop a management team so that accordingly roles and
responsibilities are assigned. Also, it enables in preparing organisational structure. Similarly, in
F&J the structure of firm is flat. In that there are 4 functions which is done that are marketing
and sales, HR, accounts and operation (Bruijl, 2018). The roles and responsibilities of each one
is different from one another. In this all employees are being aware of vision and mission of

organisation. There will be only one head of all functions that is General manager. And above
GM is owner of F&J who will also act as CEO. All the decisions will be taken by CEO by
discussing it with GM.
However, it is essential to motivate staff so that they perform in effective way and goals
are achieved. Thus, it requires to possess relevant skills and knowledge for specific role. There
will be a systematic communication method by which info is shared. The management team
consists of executives, supervisor and GM. The supervisors are middle level management.
Therefore, with expansion of F&J the organisation structure expands as well.

REFERENCES
Books and journals
Ambarwati, R. and Fathurochman, A.G., 2019, December. Competitive Force Model for
Indopipe Industry with Analysis of Customer Requirements. In Journal of Physics:
Conference Series (Vol. 1424, No. 1, p. 012046). IOP Publishing.
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of Retailing. 94(2). pp.113-135.
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Helmold, M., 2019. Tools in PM. In Progress in Performance Management (pp. 111-122).
Springer, Cham.
Ikechi, A., Chinenye, E.P. and Chiyem, O., 2017. Marketing Mix Concept: Blending the
Variables to Suit the Contemporary Marketers. International Academic Journal of
Management and Marketing. 9(1). pp.55-65.
Khalid, L.S. and Rahman, I.A., 2020. Conceptual Model for the External Factors Affecting
Project Performance Using PESTLE Factors.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Mukherjee, I., 2018. Applying Porter’s Five Force Framework in Emerging Markets—Issues and
Recommendations. In Strategic Marketing Issues in Emerging Markets (pp. 307-316).
Springer, Singapore.
Shtal, and et.al., 2018. Methods of analysis of the external environment of business activities.
Teoli, D. and An, J., 2019. SWOT analysis.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies. 4(4).
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
Online references
Annual sales value of all retailing in Great Britain from 2005 to 2020., 2021. [Online]. Available
through <https://www.statista.com/statistics/287912/retail-total-annual-sales-value-
great-britain/ >
Unique Selling Proposition., 2020. [Online]. Available through
<https://www.2cdevgroup.com/unique-selling-proposition/ >
What is the Ansoff Matrix?., 2021. [Online]. Available through
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/>
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