Chinese and Japanese Manufacture Online Vertical Gardens

Business Plan
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Table of Contents
Introduction......................................................................................................................................3
Business Plan...................................................................................................................................3
Executive Summary.........................................................................................................................3
Process of New Venture Formation.................................................................................................6
Background and Branch...................................................................................................................7
Resources.........................................................................................................................................9
Market Research............................................................................................................................10
Believable marketing.....................................................................................................................13
Calculation Part..............................................................................................................................13
REFERENCES..............................................................................................................................15
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Introduction
Business is a broad term and it requires ample of resources to establish a successful
venture. Business model must be properly developed such that it will clearly define the business
mission and vision to the workforce and they will work in accordance with it (Aithal, 2017).
Every newly set up business requires this plan because it helps in guiding the future steps of the
organization which will help in meeting set business goals and objectives. The organization
which is to be considered for this report is Greening limited which is owned by the UK
entrepreneur and is involved in expanding vertical gardens to the cities to UK. The business idea
is about vertical gardening which will be done at market of UK. It will further concentrate on
explaining the different resources which will be required for bringing this new concept to the
city. Furthermore, the market research will be done by considering the market size and share
occupied by the company for its new business model. And finally the last part will consider the
believable marketing and analyses of costing, budgeting and sales forecast.
Business Plan
The business plan is related with concept of vertical gardening where organisation name
is Greening limited. This business plan has especially made in seeing environmental condition of
UK where pollution is raising day by day and impacting health and safety of people to live
peaceful life. Such situation will be solved through plan of vertical gardening. Vertical gardening
is regarded as green wall garden which grows upward with use of support and trellises that on
ground. This present natural beauty at wall and make ambience more creative and beautiful.
Executive Summary
Business plan is defined as written document which focus on describing nature of firm,
marketing, sales strategy, financial background and containing statement of profit and loss. This
is regarded as blueprint of new business which provides direction and way to achieve set goal
and objectives (Burns and Dewhurst, 2016). It is very important for planner to include each and
every aspect in plan so that they work accordingly and attain set outcomes in best possible
manner. In this report, business plan is made after evaluation of different aspects of market of
United Kingdom and provide solution to problem.
After considering market analysis of United Kingdom, it has found that country and
people are suffering from air pollution which has impacted their health in negative manner. In
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order to avoid some extent of such problem, new business plan has made in considering current
scenario faced by market. These assist in absorbing heated gas in air and lowering indoor as well
as outdoor temperature which provide healthy indoor quality along with pretty space to walls.
They make slow rainwater, shelter and food for wildlife. Such gardening is grown on buildings
and walls of houses, parks, garden and so on. They are constructed with help of different
systems. The different types of green walls are living walls and Green Facades which are further
classified into different categories. They are described below:
Green Facades
They are defined as kind of green wall system where climbing plants, cascading
vegetation are grown (Dmour and et. al., 2015). Theses facades use fences or columns for
building freestanding structure. Green Facades are created with flower pots and rewind wall
which are categorised into different types which are as follows:
Modular Treills- Such design is made to hold green façade off wall structure where
plants are not attached to building and provide growing environment for plant and maintenance
of membrane of building.
Grid System and Wire Rope Net System- These both wall uses cables as well as wires
for designing. Here, grids are made at green façade in order to support faster growing of
climbing plants. Similarly, on other hand, wire ropes are used for supporting those plants which
grows at slow phase. These systems are using steel cables, supplementary equipment and
anchors.
Living Walls
They are called bio walls as well as vertical gardens. This is made of vertical modules,
pre vegetated panels, planted blankets which are made of synthetic fabric, clay metal, plastic and
so on (Dou, Zhu and Sarkis, 2015). They required more protection than other vertical due to
density, diversity of vegetation.
Landscape Walls- Such walls are made of strategic tool as well as landscape berms in
context to living architecture. These are sloped opposed towards vertical and main functions are
reducing noise and making stabilisation of slope.
Vegetated Mat Walls- Mur Vegetal is regarded as unique types of gardening which was
made by Patrick Blanc. This is composed of two layers that focus on supporting plants as well as
growing media.
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Modular Living Walls- This wall is formed from using of modules for green roof
applications having different innovation of technology. They are made in shape of rectangle or
square panels which grows media for supporting plant material.
After discussing about different types of green walls or vertical gardening, it is very
important to know about Unique Selling Proposition of new business plan. This is defined as
point through which business can sell their products and services at marketplace. The USP of
business plan is as follows:
Saving Space- In current time, people does not have any outdoor space for doing
gardening as they live in apartments and could use limited space for gardening which is balcony
(Eniola and Entebang, 2015). In order to be creative, respective business plan will helps to solve
issues of gardening. As it uses less space for gardening and plants can be arranged vertically in
one by one format.
Protective Shield- Each and every people are aware that plants absorbs harmful as well
as pollutants components. If plants are grown vertically then it works as protective shield and
provide pure environment for breathing.
Insulate Building- Vertical gardening not only focuses on absorbing air pollutant but
harsh weather, heat, noise and UV rays. This helps in regulating temperature with transpiration
and providing home cool.
Planting Reduce Stress- According to study, physiological effect of plants helps in
reducing physical symbols of stress as well as promoting access to vegetation for good and
positive impact to health (Eniola and Entebang, 2015).
Aesthetic Visual Appeal- Vertical gardening are performed on walls which is used for
making green walls, basket decoration, gate decoration, window boxers that provide natural
beauty and impact on visualise. This also leads to turn simple apartments into luxury villas as per
requirement and desire of people.
Therefore, this is the overview of business plan of vertical gardening which will be
establish at United Kingdom market to avoid problems faced by them in effective manner. It is
new types of concept which is not highly followed in every country.
To set up a new business venture of vertical garden with limited expenses in the starting, around
270,000 Sterling pounds will be required with the ROI of 31.8%. In the starting, more focus
would be given on Basil and chives as these crops are adjustable to every atmosphere resulting in
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better productivity for company. Operation cost with different costing is calculated in the latter
part of the report.
Process of New Venture Formation
In order to initiate new business, it is very important to analyse different types of business
vehicles and out of those best one should be selected. Business vehicles are defined as those
which provide loans to new firms in different forms. Some of them are described below:
Banks- It is defined as institutions which accept deposits from public and creating demand
deposits (Erasmus, Strydom and Rudansky-Kloppers, 2016). They provide loan to new business
at some rate of interest which should be paid on monthly or quarterly basis as decided by both of
them. It is secured types of loan though required procedure to borrow money.
Financial Institutions- They are defined as company which are engaged in business of
dealing with money transactions as well as financial like loans, investments, currency exchanges.
There are various financial institutions in UK from where new business can take loan to start up
their business. They are flexible in nature but difficult for new venture to raise loan from such
institutions.
After analysis of both, it has concluded that respective organisation has to borrow money
from bank for initiating their new business activities and operations at marketplace.
Companies’ house is regarded as regulatory body for company registration and
maintaining records of business. The main functions of such body are to store, examine
information of company which are delivered under Companies Act along with related legislation
(Gummesson, 2017). All companies have to be incorporated as well as registered under such
house. The roles of companies’ house are doing inspection, maintenance of information on
limited business. Information which is presented at register of companies should be accessed
through online by both business and general public.
Before incorporating business at market, it is very important to set up or perform registration
at UK. In order to do registration, there is some procedure which should be followed by new
business. They are listed below:
Step 1- Checking whether set up limited company is suitable for market
Step 2- Choosing name
Step 3- Choosing board of directors as well as company secretary
Step 4- Deciding about guarantors or shareholders
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Step 5- Preparing documents about agreeing how to run business
Step 6- Checking about records that need to be kept
Step 7- registering Company
Background and Branch
In this board of directors has to be decided and competencies matrix has to be used in most
effective manner. The Board of Directors are those people who guide business about raising
capital or performing initial public offering (Jeston and Nelis, 2014). They help in solving issues
of corporate governance and meeting is held one in a year. They can be Chief Executive Officer
(CEO), chairman and Chief Financial Officer (CFO). In context of new business of vertical
gardening, board of directors are CEO and chairman who are liable to manage overall business
along with other executive for work performance. For knowing about competencies matrix, it is
very important to know about capabilities and skills of business to conduct their activities and
operations at market. This can be evaluated with help of business model which is described
below:
Business model is defined as documents which contain information about consumers,
market, strengths, challenges, products and other aspects (Löhe and Legner, 2014). This is fastest
way which helps in capturing as well as communicating such elements within company. They
are mentioned below:
Key Partners- It is important for new business to identify their key partner in advance and
knows about their requirements in proper manner. For vertical gardening, key partners include
supplier, household, communities, society, manufacture and designer. These all people are liable
to make plan successful and growth at market. This is essential to know their need and work
accordingly by using ideas from them in effective manner.
Key Activities- In order to run new business, it is very important to perform key activities
which are essential for plan. This helps in making profit for business and they are engaged
towards it. These key activities includes operations, marketing, problem solving. For vertical
gardening, operations has to carried out and marketing or buying of new product for performing
gardening.
Key Resources- They is the things or people who are required for new business plan.
Without these business cannot run and survive at marketplace (Marom and Lussier, 2014). This
includes physical, financial, human. For business plan, physical resource includes walls,
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decoration and types of plants. Similarly, for finance money is required and human includes
skilled designer and person who can perform vertical gardening.
Value Propositions- These are the things which add value to new business. It is the
combination of both goods and services that add value to consumers by providing solutions to
problems in most effective manner. It includes feature of business plan such as protective shield,
saving space and others.
Customer Relationships- For success of business plan, it is very important for organisation
to create relationship with customers in most effective manner (Maunder, 2019). This includes
engagement with them, sustainable process, providing high quality products and services. In
order to maintain customer relationship, feedback taken on regular basis so that correction can be
done.
Channels- It is the ways through which people are create awareness about new products and
service or new business plan. This includes using of social media, traditional media and open call
and so on for awareness creation among people.
Customer Segments- It is defined as element of business model which identifies to whom
products and services are sold in effective manner. This is important block which helps in
success and growth of business. It includes families, middle class people and so on. As family
living in apartment want to see their house beautiful so they prefer vertical gardening at their
balcony, walls of house to protect themselves from pollution and live happy life.
Cost Structure- This is defined as all types of cost as well as expenses which will incur by
company when operating business at market. Such aspect will assist business to decided whether
to pivot or proceed. They are of two types such as value drive and cost drive. It includes
decoration, vertical gardens, external sources, wall decoration and quality of products and so on.
This is essential to create value for product and cost so that customer feel happy.
Revenue Streams- This is defined as cash which is generated by company from each
consumer segment (Maylor, Blackmon and Huemann, 2016). Out of many, business needs one to
generate revenue stream for earning money in most effective manner. This includes commission,
usage fees and assets sales and other. For example, if family has agreed to do vertical gardening
then business has to pay commission to employees to particular area and they perform work
through revenue is generated.
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Resources
The current business model talks about the installation or development of vertical gardens
in cities of UK. The company Greening limited has come up with the business plan of increasing
vertical gardens in different parts of the city. Vertical gardens are the ones where plans are
grown vertically with the help of hydroponics. The population in urban areas are increasing day
by day as majority of the people from small villages and towns are shifting to the cities for work,
education, job, services, etc (McGowan and et. al., 2015). This has immensely affected the
natural beauty and infect also increased the process of deforestation where trees and plants are
cut in bulk in order to make more houses, apartments, departmental stores, offices, multiplexes,
malls, etc. This has created lack of greenery and natural vegetation and directly affected the
human life from aesthetical and physical point of view.
In order to overcome with this problem, the Greening limited has come up with a
business model where vertical gardens will be built in indoors and outdoors of various premises
and buildings and shops. They are generally the best options to increase plantation in buildings,
office and various places and takes small spaces. These vertical gardens have numerous kinds of
names like live walls or living green walls, etc. They are awesome in looking and have the
potential to provide more comfortable and feel of natural atmosphere.
The indoor vertical gardens are created in the internal spaces of the buildings. Greening
limited works on it so that inflow of air can be experienced by the people. The company is
involved in building such gardens by taking help of resources like natural plants such as ferns,
calathea, pilea, ficus, etc (Myers, 2019). These are some of the most precious species of natural
vegetation which are used by the company in building vertical gardens. Furthermore, they are
highly space efficient and empty wall or space can be easily filled with this. When these plants
are being planted inside the premises like offices then many workers or employees may have the
allergy from the dangerous chemicals like formaldehyde. So vertical gardens gives the benefit of
natural clean air system and Greening limited works hard in to order enhance good and soothing
atmosphere for breathing and healthier surroundings. Also these plants help in minimizing the
noise pollution and make the environment quiet and good for working.
The one is exterior vertical gardens in which the Greening limited works to install
vertical gardens on the external or outside part of the premises. The resources which play a major
role in Greening limited for this type of installation includes moss, vines and several other plants
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that are installed outside. It has the advantage of obtaining direct sunlight. Furthermore, this
helps in providing control on the temperatures, ultra violet radiation and heavy rainfall. Infect,
during summer season, this is highly effective as it helps in making the air cool around it which
is generally known as evaporation.
Resources play a vital role in building the vertical gardens through the cities of UK and
Greening limited will require different resources like frame which is treated as a foundation or
primary equipment without which the garden or walls cannot be built (Noe and et. al., 2015).
Another things required will be fiber sheets, fertilizers, 4 inch PVC pipes, etc. apart from this,
Greening limited will need to have huge collection of plastic sheets and fabrics, fertilizer injector
that will help in feeding the plants regularly so that their beauty can be maintained. Irrigation
system will be required for providing proper and regular water to the vertical plants and this is
not an easy task.
As this is one of the best businesses and can be successful as well but the business model
of Greening limited has different problems and issues which are experienced by them. Firstly,
the resources required for the installation of vertical gardens are quiet expensive and so it
maximizes the overall cost of the installation. As this becomes expensive then not all the
companies are premises were show interest in installing this. Furthermore, its repair is also
difficult and requires ample of caring compared to the normal plantation. Also, such types of
plantation requires well experienced people who poses the ability to install such plants and this
has higher labor cost as well.
Market Research
When any new venture is coming into some field then it is very necessary to do the market
research. This is important to know that how much market is the particular business has already
been established (Nuthall, 2018). Market research helps in knowing the Greening limited that
how much market share is owned by the vertical plants in UK and describes the relevant size as
well. This will eventually helps the marketing department of the company to construct the
business model such that it can meet the market requirements. The total share obtained by
vertical gardens is 53% and market size is relatively high. For this purpose, market researcher
will apply different techniques and models in order to know the market conditions for this new
venture (Zhu and Sarkis, 2015) .
SGM
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SGM stands for semi global matching which is considered to be the widespread
algorithm for matching image that can apply to various applications. This is very useful for
Greening limited because it will the marketer of the company by offering various advantages in
compared to the other image matching approaches (Real, Roldán and Leal, 2014). This is a kind
of multiple image matching that particularly helps in constructing the object in 3D by
discovering homologous points and there has been greater amount of improvement in 3D images
with the use of SGM technique.
SWOT Analyses
SWOT analyses are one of the most important marketing strategies which are used by the
marketers in order to identify the internal strength and weaknesses of the company and external
opportunities and threats (Swift and Piff, 2014). This is one of the prominent tools through which
the analyses of internal and external business environment can be done. By performing this, the
marketing researcher of Greening limited will make best use of their strength and try to control
their weaknesses. Furthermore, they will be able to grab the upcoming opportunities which can
make their business successful and pre determined threats will help in making relevant measures
in order to deal with them. The following is the SWOT of Greening limited:
Strength
Strong financial resources.
Good and qualified workforce.
Innovative people.
Weakness
Low market share.
Lower liquidity.
Higher maintenance needed.
Opportunities
To tap schools and colleges in order to provide
good atmosphere to the employees and
students so they remain focused.
Make best use of resources by merging
businesses with plastics and fiber making
companies, irrigation system making
companies, etc.
Threats
Higher competition from already established
companies like A+ Lawn and landscape, Four
leaf landscape, etc.
Porter’s five forces model
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Michael porter developed the model of five forces of industry in 1979 and is used by the
marketing departments of the companies in order to examine the various competitive forces in
the environment of industries. So Greening limited will apply this model in order to know
various things before entering into the new business model of UK and they are discussed below:
 The threat of new entrant: This type of force explains the threat which new entrant may
or may not pose. The already existing companies which are operating under the business
of vertical gardens are high in UK so they will not get affected by the entry of new
company. Infect the new organization will face higher level of risk.
 Bargaining power of suppliers: This force is concerned with determining the power of
suppliers. If there will too many suppliers of the same product then the suppliers will
have low bargaining power else vice versa (Tarhini, Al-Dmour and Obeidat, 2015).
Therefore, Greening limited will face low bargaining power because materials which will
be necessary in making vertical gardens are unique and not easily available. So therefore,
this can be expensive task for the company.
 Bargaining power of customers: Customers are the most important asset of the
company because very product produced needs to be sold and customers are the people
who purchase the product. They are also price conscious and want high quality products
at comparatively lower prices. Greening limited will face higher bargaining power from
the customers because there will be limited customers at the initial stage of the business
and in order to expand the business to the market, customers are required to be left with
satisfactory and happy feeling towards company.
 Threat of substitutes: This power is concerned with determining the threat from the
alternative options or companies who are operating under this field. So therefore,
Greening limited will have moderate risk or threat of substitutes because there are less
companies operating under this field (Zhu and et. al., 2017).
 Rivalry among existing firms: This force is concerned with determining the level of
competition in the market (Uhl and Gollenia, 2016). Therefore, Greening limited will
have higher level of competition from the existing operating companies and so this will
force the company to keep the prices low from the rivalries. It is because these companies
are working at global level and people prefer already existing companies.
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Believable marketing
Under this, the Greening limited will focus on the manner in which they can be reached
to the customers. For this purpose, the company will be using different primary and secondary
methods in order to make customers aware about the new company and venture which is being
opening in the cities (Wood and et. al., 2015). The different advertisements methods will be used
like placing ads in business magazines, contacting to different architectures and interior
designers, placing ads on internet and social networking sites as this is one of the most common
method to make maximum people aware at minimum period of time (Wu and et. al., 2015).
Furthermore, the ads on bill boards and business newspapers will also help to tap people because
vertical gardens are most suitable for corporate and offices that gives them special look.
Calculation Part
Crop Seed Germination Time to
Transplant
Time for
harvesting
Basil 10 Days 4 Weeks 5 Weeks
Chives Not Applicable Not Applicable 3 Weeks
Figure 1: Sales Target Per Quarter
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Figure 2: Ways of Investment 270,000
Investment
requirement 270,000
20 PC Equity 100,000
Loan @10 for 10 Years 100,000
Personal capital 70,000
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