Business Plan for Earth's Herb Company

This business plan discusses the overview of Earth's Herb Company, its mission, vision, smart objectives, external environment analysis using PESTLE framework, key competitors, and suggestions for the target market.

Business plan

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Overview of proposed business idea...........................................................................................1
MAIN BODY...................................................................................................................................1
External environment analysis....................................................................................................2
Key competitors and what are the key competitors and there competitive advantage...............4
Suggestion for the proposed target market..................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Overview of proposed business idea
Earth’s Herb is one of the new business firm which has established its business in the United
Kingdom in order to effectively develop their dietary and organic business plan. This company
tends to offer wide range of organic products which in turn has been made from using organic
and natural products of the environment (Stevenson, Drake and Givens, 2018). No chemical
products has been used and are free from artificial flavours. The owner of the company tends to
use natural nuts, whole wheat, grains, seeds, etc. These products are produced without the use of
generally modified components and synthetic chemical components. The range of goods such as
packaged cereals, high fibre dietary biscuits, fresh canned juices, whole grain Tortillas, etc. in
turn are considered to be few range of products which Earth’s Herb Company wants to offer to
their customers.
Mission
The key vision of the Earth’s Herb Company is to empower customers to improve their health by
offering wide range of organic and heathy range of products to the customers.
Vision
To become one of the leading company who offers range of organic and heathy range of
products to the customers. I want to expand my business operations across the globe and create a
competitive position by gaining high degree of market share.
Smart Objectives
 The key objective of the Earth’s Herb Company is to increase the profit of the company
by 5 to 7% by the end of 2020.
 To increase the customer base and market share of the Earth’s Herb Company to gain
competitive position within 3 years.
 To deliver goods online for better customer service and increased sales within next 2
years.
MAIN BODY
Organic food industry has been performing exceptionally well as the sales in the 2018 of the
organic food has increased by 5.3%. This has boosted up the customers getting highly engaged in
indulging into healthy food diet. This way it helps in gaining better health outcomes and results
from the customers (Dalziel, Kliem and Givens, 2015). The customers in turn are becoming very
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diet conscious these days which is considered to be very useful in effectively targeting those
customers who are very diet conscious. The UK food industry has been growing at an
exceptional rate. The organic industry in turn are becoming more sustainable and tends to focus
on understanding the needs and demand of the customers in order to provide best quality
products to the customers (Payling, and et.al., 2015). Although, customers in turn are becoming
more health conscious which helps in attaining higher customer base which eventually leads to
higher sales and larger market share for the Earth’s Herb company. The organic food industry in
turn has been growing at the normal pace of around 3.5%.
External environment analysis.
PESTLE framework is considered to be one of the effective framework which is very useful in
analysing various external and internal environmental factors which in turn could affect the
operations of the company (Fernandes, and et.al., 2016). It is very useful for the entrepreneur and
management of the company to take proper decision in order to reduce environmental factors
impact on the organisation.
Political factor
There are various sets of political factors such as government policy, labour laws, foreign trade
policy, political instability, terrorism, environmental laws, funding grants, initiatives, fiscal
policy, corruption, military considerations, trade restrictions, et cetera. which in turn largely
influence the operations of the business. Customers are becoming more conscious towards their
diet and there are various sets of health policies imposed by the government which in turn largely
affected the working of the company (Alava, and et.al., 2018). Wide set of regulations and poor
quality nutrition in turn is considered to be as one of the major factor which largely influences
the operations of the Earth’s Herb company. Hence, free trade agreement, low set of labour
standards within the developing countries and various sets of regulations on organic as well as
GMO food is considered to be major opportunity for the Earth’s Herb company.
Economic factor
There are various sets of economic factors which are largely determines sustainability and
profitability of the company (LOPEZDOMINGUEZ and LEVYA, 2019). They include
disposable income of the consumer is in the business man, interest taxes, wage rate, exchange
rates, interest rates, economic growth, inflation, deflation, financial capabilities, unemployment
rates, etc. healthy and dietary food are considered to be more expensive than other non-organic
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and natural products. The country within which the business operates and the unemployment rate
in turn largely influence the company (PEST Analysis Example for the Food Industry,
2017). Growing disposable income health is one of the Opportunity which leads to higher
profitability and sales. Rise in the cost of labourers is considered to be the major threat for the
business. Higher employment great and economic stability a considered to be major opportunity
for the Earth’s Herb company.
Social factor
Social and cultural factors are considered to be the set of attitude, belief belief and also trend of
the population which largely affects the community and market of the organisation (Trematerra,
and Fleurat-Lessard, 2015). These factors mainly comprises of age distribution, career attitude,
cultural trends, population growth, demographics, image of the organisation. Consumer
confidence and industrial reviews. Moreover cultural barriers, lifestyle attitude, safety emphasis,
etc. in turn are becoming one of the major social factors which largely influence the functioning
and operations of the organisation. Nowadays people are becoming more health conscious
which in turn helps in having better clear relationship with the organic dietary food and personal
health of the customers. Increase in the number of wealth gap is considered to be one of the
major threat for the business (PEST Analysis Example for the Food Industry, 2017).
However increasing in the culture that was the day and changing lifestyle, increasing emphasis
on the healthy lifestyle are considered to be one of the major opportunity for the Earth’s Herb
Company.
Technological factor
There seems to be high degree of technological a new innovation and also helps in serving the
customers better. These technological factors mainly comprises of maturity of technologies,
production of goods and services, return on investment, increase training, potential copyright,
potential infringement, communication with the target market, distribution of the goods and
services, et cetera internal considered to be the key factors which largely influenced the
operations of the firm (Sammut‐Bonnici and Galea, 2015). High degree of automation of the
business, increase in the use of mobile technology, and integration with the online website helps
in increasing the sales of the company which in turn leads to higher degree of a poor should be
for the business. Creating food labels, effective practice, distribution services in turn are
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considered to be one of the major factors which influence the functioning of the Earth’s Herb
Company.
Key competitors and what are the key competitors and there competitive advantage.
The key industry products and services mainly comprises of dairy products, dietary biscuits,
organic fruits, salads, cereals, baby food, organic beverages, organic meat, eggs, et cetera
(Cotterill, 2019). The tile Street activities associated with organic food industry mainly
comprises of organic starts and grains retailing, organic dairy products retail, retailing of organic
meat, organic beverage retailing, organic vegetable and fruits. The key competitors of the
company or whole good supermarket, Organic valley, Trader Joe’s, simply organic, Seventh
generation Inc. , Tesco company, Pacific natural foods, etc. are considered to be the key players
of the Earth’s Herb company (Bohari, Hin and Fuad, 2017). One of the key competitors which
holds the largest market share within the organic food retail industry are fresh and wild Ltd, river
ford organic farmers Ltd. And Abel and Cole ltd.
Competitive advantage is an effective measure which is considered to be very useful in creating
a favourable set of business operations which in turn is considered to be very useful for the
higher growth and efficiency of the business. Earth’s Herb Company tends to focus on creating a
competitive position within the market. The company can gain competitive advantage by
delivering high quality organic dietary food products to the customers (Carraresi, and Banterle,
2015). This way it helps in gathering wide set of information which eventually leads to higher
operational growth and efficiency. The Earth’s Herb Company will focus on engaging in
effective marketing and delivering goods online which in turn is considered to be one of the
effective measure to cater attraction of large number of customers. This leads to higher
productivity and profitability of the Earth’s Herb Company. There seems to be high degree of
increasing demand for the organic dietary products which in turn is very advantageous for the
growth and sustainability of the business (Fleisher and Bensoussan, 2015). The Earth’s Herb
Company will develop various different range of organic and dietary products at a competitive
price which in turn will help in the attainment of higher operational growth and sustainability of
the Earth’s Herb Company. The company must in turn also focus on expanding their business to
new places which will eventually help in increasing the demand of the customers. This in turn
leads to higher market share of the organization and will also leads to higher operational growth
and operational efficiency of the Earth’s Herb Company. Creating a brand recognition and
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indulging in the advanced marketing strategy in turn is considered to be very useful in
maintaining higher set of goals and objectives of the Earth’s Herb Company (Barański and et.al.,
2017). This is an appropriate procedure which helps creating better market share and competitive
position within the market better than its key competitors.
Suggestion for the proposed target market.
The Earth’s Herb Company tends to target only those customers who in turn are highly
health conscious. Targeting those customers who are highly health conscious helps in delivering
the range of organic dietary products (Trematerra, and Fleurat-Lessard, 2015). It tends to target
both male and female who in turn largely belongs to the age group of 28 to 80 years of the age.
This way it helps in targeting large range of age population. This way it leads to high customer
share and profitability. The Earth’s Herb Company will target those high street area which will
tend to largely focus on targeting large number of high end customers with utmost accuracy and
efficiency. The Earth’s Herb Company will develop various store on high streets of London, mall
and also small Kiosk which will in turn help in the attainment of the higher profitability by
increasing the sales by targeting more customers. The Earth’s Herb Company will also focus on
establishing their business online which in turn is considered to be one of the most effective
activity which in turn helps in targeting large number of customers across London and various
other few areas in London (Carraresi, and Banterle, 2015). This way it helps in the attainment of
the higher profitability and productivity by increasing the sales by targeting more customers.
CONCLUSION
From the above conducted study it has been summarized that, The organic industry in turn
are becoming more sustainable and tends to focus on understanding the needs and demand of the
customers in order to provide best quality products to the customers. This study will carry out
political, social, economic and technological factor which in turn largely influence the
functioning of the company. It has been concluded that, there are large number of key
competitors which in turn influence business function. Competitive advantage is an effective
measure which is considered to be very useful in creating a favourable set of business operations
which in turn is considered to be very useful for the higher growth and efficiency of the business.
The Organic dietary Company tends to target only those customers who in turn are highly health
conscious.
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REFERENCES
Books and Journals
Alava, R.P., and et.al., 2018. PEST Analysis Based on Neutrosophic Cognitive Maps: A Case
Study for Food Industry. Neutrosophic Sets and Systems, 21(1), p.10.
Barański, and et.al., 2017. Effects of organic food consumption on human health; the jury is still
out!. Food & nutrition research, 61(1), p.1287333.
Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and Space, 9(1).
Carraresi, L. and Banterle, A., 2015. Agri-food competitive performance in EU countries: a
fifteen-year retrospective. International Food and Agribusiness Management Review, 18(1030-
2016-83063), pp.37-62.
Cotterill, R.W., 2019. Competitive strategy analysis in the food system. CRC Press.
Dalziel, C.J., Kliem, K.E. and Givens, D.I., 2015. Fat and fatty acid composition of cooked meat
from UK retail chickens labelled as from organic and non-organic production systems. Food
chemistry, 179, pp.103-108.
Fernandes, A.R and et.al., 2016. Bromine content and brominated flame retardants in food and
animal feed from the UK. Chemosphere, 150, pp.472-478.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
application of new and classic methods. FT Press.
LOPEZDOMINGUEZ, S.D. and LEVYA, M., 2019. PEST analysis based on fuzzy decision
maps for food industry. Revista ESPACIOS, 40(03).
Payling, L.M and et.al., 2015. Effect of milk type and processing on iodine concentration of
organic and conventional winter milk at retail: implications for nutrition. Food chemistry, 178,
pp.327-330.
Sammut‐Bonnici, T. and Galea, D., 2015. PEST analysis. Wiley Encyclopedia of management,
pp.1-1.
Stevenson, M.C., Drake, C. and Givens, D.I., 2018. Further studies on the iodine concentration
of conventional, organic and UHT semi-skimmed milk at retail in the UK. Food chemistry, 239,
pp.551-555.
Trematerra, P. and Fleurat-Lessard, F., 2015. Food industry practices affecting pest
management. Stewart postharvest review, 11(1), pp.1-7.
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Online
PEST Analysis Example for the Food Industry. 2017. [ONLINE]. Available through<
https://pestleanalysis.com/pest-analysis-example-for-the-food-industry/ >
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