Business Plan Report project 1

Just the Business plan for semester 1 scenario 1 is necessarely The business plan infographic poster is for semester 2 and is not necessarely

Business Plan Report
project 1

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysis of the external environment affecting the business......................................................3
Discussion related to competitiveness of business and detail about the competitive advantage.5
Analysis of the target market with justification...........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business plan is defined as those marketing and sales strategy which is being undertaken by
an entrepreneur describing the nature of business. It also consists of financial background and the
projected profit and loss statement.
The new business which is going to be start in local area is about a restaurant serving frozen
yoghurt which will be made up of high quality raw materials and containing low calories and
Lactose. This idea is being executed as more and more people are becoming health conscious
and they want to eat something healthy. The name of the restaurant will be Froogle.
The personal expertise which I have and which will surely grant me success includes is that
I am really good at making different type of Frozen yogurt with different flavors. I can have
engaged in attracting more consumers towards my restaurant as I am really good at
communicating. I will also be offering various types of discount to customers in order to create
consumer loyalty.
There are various gaps in this industrial area like there are no restaurants who are involved
in providing healthy yoghurt. Also they are not making use of high quality organic material
which will be provided by Froogle.
The location that is being selected for this restaurant is Carnaby street in London. It is the
most famous and populated street in London. Also there are low number of shops who are
serving frozen yoghurt. So competition is also less over there. It will allow the business to
maximize profit and achieve their goals and objectives.
Present report will lay emphasis on the external environment factor that lays emphasis on
business. It will also focus on competitiveness of the industry. Assignment will also lay focus on
the target market and will provide justification for same. Study will provide details about the
threat which can be faced by company.
MAIN BODY
Analysis of the external environment affecting the business
There are various external factors that can lay positive and negative impact on the new
business idea. This can be analysed with the help of PESTLE framework. It includes the
following:
Political factor: In United Kingdom political factor has led a significant impact on the
food and beverage industry. There are various norms and policies that has been implemented by

government which needs to be followed by restaurant, café and even hotel. Like for example UK
government is laying special emphasis on maintaining the health and safety standards. The
yogurt industry comes into one of the most strictly monitored business. So Froogle restaurant a
new business idea needs to make sure that they provide high quality of food product. They need
to maintain proper hand hygiene when business is providing consumer with ice cream. Also
hygiene related to pasteurisation and sterilisation needs to be maintained by Froogle so that they
can grow and achieve their business goals and objectives.
Economic factor: This can also lay significant impact on the new business restaurant
which has been recently opened. Various factors that can affect business includes labour rate,
fiscal policy. Like for example if the labour rate increases it will impact negatively on business
of Froogle. It can increase operational cost of business and also expenses of restaurant will be
increased. So company needs to come up with strategic planning and ideas in order to overcome
from this problem (Ahl and Marlow, 2017). This will assist them in increasing profitability and
sales revenue. It will support new restaurant business in growing. Moreover, the purchase power
of Pound Sterling is going good and individuals purchase parity has improved. It is a good time
for new frozen yogurt business to expand their product and services.
Social factor: It consists of various factors such as taste and preferences of individuals that
can lay overall impact on the frozen yogurt business. In this Froogle needs to lay emphasis on the
needs and demands of consumers and must engaged in fulfilling them. They need to analyse the
market conditions and make strategies accordingly. Like for example now a day more and more
consumer has become health conscious so restaurant must emphasise on providing yogurt made
up of organic material (Nørskov, Antorini and Jensen, 2019). This will assist them in achieving
trust of consumers and will also help them in enhancing customer satisfaction. They also need to
make sure that yogurt supplied by them consists of low calories and lactose. Also it must consist
of low fat and protein so that more of consumers are being attracted towards them. It will assist
Froogle in growing.
Technological factor: It has been analysed that making use of advanced technology can
assist business in attracting large number of consumers. Like Froogle can engaged in developing
mobile app for their restaurant services so that it can be easier for customer to place orders. This
can assist new business in attracting consumers and also it will enhance the experience of
customers. Froogle can also have engaged in developing their own website where consumer can

place their feedback over there. This feedback can assist restaurant in improvising the quality of
frozen yogurt that has been provided by Froogle. This will support restaurant in growing and
achieving their short term as well long term goals and objectives. Making use of advanced
technology can also increase the profit and revenue of business.
Legal factor: There are various rules and regulations implemented by UK government
which needs to be followed by frozen yogurt restaurant Froogle. They must ensure that
employees are provided with better health and safety conditions. Restaurant must make sure that
no worker is working under hazardous condition. This will assist restaurant in retaining
employees and will also assist them in creating worker’s loyalty. This factor can assist them in
increasing productivity and operational efficiency of new business. It is really essential for
growth of business to follow all rules and regulations.
Environmental factor: Froogle needs to engaged in taking care of environment in order to
create sustainability. They must make sure that resources are being used effectively so that waste
can be minimised. This will assist restaurant in laying positive impact on consumers and will
increase the brand reputation and equity of the firm. They can also make sure to serve the yogurt
n biodegradable containers so that Froogle can have engaged in minimising the use of plastic.
This will assist them in keeping a balance towards sustainable aspect. It will lay positive impact
on environment.
Discussion related to competitiveness of business and detail about the competitive advantage
In order to gain competitive advantage and also analyse the growth of business, Froogle
can make use of Porters five forces (Dobson, 2016). This framework will assist new business in
analysing and evaluating the type of competitors that will be faced by them when establishing
their frozen yogurt services. It includes the following points:
Bargaining power of suppliers: It is low, as the product which is required in making up
of healthy frozen yogurt is really integrated and Froogle can witch to other suppliers. They can
buy high quality of organic material at low price from other suppliers. This will assist the new
restaurant service in gaining competitive advantage and can also help them in growing. There are
large number of suppliers supplying these type of products so Froogle can switch and also the
switching cost is quiet low. There are lot of buyers, so suppliers have low control over the cost
which makes their power low (Mole, 2016).

Bargaining power of buyer: It is also low as the buyers are fragmented and numerous.
Also there is no switching cost for buyers the food and drink market is part of the fabric of
society. Also the product differentiation in this industry is really high that means there are
chances that consumers are unable to find out the same frozen yogurt from different brand
making them a weaker force within the industry. Also the quality of goods is really essential for
the buyers so they can witch from one restaurant to another making them less price sensitive.
This can be handled by Froogle by bringing more innovative and creative products.
Threat of substitute: There are less number of substitute product available in market.
Also there are chances that substitute products available are expensive and of low quality. So it
has been analysed that threat of substitute in industry is weak. Froogle can manage the threat
related to substitute by focusing on providing consumers with high quality organic product. This
will assist firm in growing and achieving their goals and objectives.
Threat of new entrants: It is high as it is really easy to open the business related to frozen
yogurt (Karimi and et.al., 2016). Competitors can open a restaurant, food truck or can even serve
online. So Froogle needs to make strategies in order to overcome this situation. This will help
new business in gaining competitive advantage.
Rivalry among existing competitors: It is also high as there are so many restaurants who
are already serving frozen yogurt. They can also have engaged in providing healthy yogurt at low
cost, so Froogle needs to make plan related to this risk.
Analysis of the target market with justification
The target market that has been set up by new restaurant which is Froogle is health
conscious consumers (Byrne, Thompson and Dimov, 2019). Restaurant is engaged in providing
high quality of frozen yogurt. They are also involved in making it with organic material as more
and more consumers are becoming health conscious. They are making sure to provide high
quality of product and services with low cost. This will assist company in creating employee
loyalty and also it will help firm in achieving their goals and objectives. It has also been analysed
that new business idea will be targeting mainly people from the age of 15-55. They are targeting
individuals with middle and high income class. As the product supplied by them is mainly liked
by young and middle aged person. Froogle is also making sure to provide consumers with yogurt
that consists of low fats and calories. This will assist them in improving the health aspects of

customers who are engaged in regularly eating the frozen Yogurt. This aspect will also support
firm in gaining competitive advantage which is really essential for growth of Froogle.
CONCLUSION
From the above report it has been summarized that there are various factors which has affected
the business of healthy frozen yogurt. It has been analyzed from PESTLE analysis that restaurant
needs to make use of high quality of food material while preparing yogurt as implied by UK
government. It has also been summarized that restaurant has been engaged in providing the
yogurt in biodegradable container so that they can reduce the use of plastic. It has also been
analyzed from the report that restaurant has been engaged in providing frozen yogurt according
to the taste and preferences of consumers.
There are various opportunities that has been identified in this industry like people are
becoming more health conscious but they always want dessert so healthy frozen yogurt will be
liked by them. It has also been analyzed that bargaining power of suppliers and buyers in this
industry are low which is really necessary for growth of new business.
From the report it has been analyzed that there are various threats that can be faced by
Froogle like threat from competitors. As competitors are also engaged in providing same product
at different price. So company really needs to work upon their pricing strategy. Also competitors
are making use of various effective marketing strategies which can act as threat for restaurant.
The next step for business plan is to make use of effective promotional methods so that
more consumers can be attracted towards Froogle. Restaurant will be engaged in promoting the
business through social media channels which will be cost efficient for them. This will support
restaurant in increasing their sales and revenue.

REFERENCES
Books and Journals
Karimi, S. and et.al., 2016. Fostering students’ competence in identifying business opportunities
in entrepreneurship education. Innovations in education and teaching
international. 53(2). pp.215-229.
Byrne, O., Thompson, N.A. and Dimov, D.P., 2019, July. Imagining Possible Opportunities
through Business Development Practices: A Practice-Based Study. In Academy of
Management Proceedings (Vol. 2019, No. 1, p. 19502). Briarcliff Manor, NY 10510:
Academy of Management.
Dobson, J., 2016. Building Entrepreneurial self-efficacy in Millennials: Helping students
understand the process of developing ideas into opportunities. In United States
Association for Small Business and Entrepreneurship. Conference Proceedings (p. CC1).
United States Association for Small Business and Entrepreneurship.
Ahl, H. and Marlow, S., 2017. Postfeminist times: New opportunities or business as usual?.
Foo, M.D., 2017. Member experience, use of external assistance and evaluation of business
ideas. Journal of Small Business Management.48(1). pp.32-43.
Mole, K., 2016. the Value of Business Advice. ERC Reseacrh Paper, 44.
Nørskov, S., Antorini, Y.M. and Jensen, M.B., 2019. Innovative brand community members and
their willingness to share ideas with companies. In Managing Innovation (pp. 145-169).
World Scientific.

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