Business Plan for Go Organic Grocery Store

ENTERPRISE AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
TASK 1: BUSINESS PLAN...........................................................................................................1
Executive summary.....................................................................................................................1
The concept..................................................................................................................................1
Team's entrepreneurial competencies..........................................................................................1
SMART Objectives.....................................................................................................................2
Pestle analysis..............................................................................................................................2
Competition.................................................................................................................................3
Marketing mix.............................................................................................................................4
Marketing the business: STP.......................................................................................................5
Sales and operation......................................................................................................................5
Sales forecast...............................................................................................................................7
Financial projection.....................................................................................................................8
Strength and risk of business.......................................................................................................8
Closing summary.........................................................................................................................9
TASK 2..........................................................................................................................................10
REFERENCES..............................................................................................................................24

TASK 1: BUSINESS PLAN
Executive summary
The name of new business idea is “Go Organic” grocery stores who offers only organic
products. As the demand of such products increases from last 5 years up to 25% in UK, so
investing upon it will be more beneficial. The purpose to set up this idea is to meet the wants of
individual who are health conscious. The health survey for England also stated that there were
28% of adults are obese in 2020, so the new business idea of opening organic grocery store is
feasible (UK consumer want more organic everything, 2020).
The current business plan includes business canvas model that define and communicate
the idea in better manner. Further, it highlights external factor that affect the business directly
and with the help of Marketing mix, study present the actions which company use to promote its
own products. Apart from this, through sales forecasting, plan assists to examine whether the
business is viable or not, along with this different strengths and risks pertaining to business will
be drawn.
The concept
In the present report a new business is being developed relating to the store which will
provide all organic product under one roof. Go Organic is the business which is coming up with
the idea of a grocery store which will involve organic beverages and food and herbal beauty
products. The reason underlying selecting of this business is that in UK current market trend is
towards consumption of healthy and organic products. In addition to this obesity among people
is also at rise and due to this company has come up with the idea of organic grocery store.
Team's entrepreneurial competencies
There will be 10 members who run Go Organic in effectual manner, but for that they
required below mentioned competencies that assist to smooths the business operations. Communication skill: This ability must have possessed by entrepreneur and team
members of quoted company because it helps to negotiate with suppliers, customers and
employees (Bird, 2019). With the help of effective communication skill, manager and
leader will easily build good working relationships with their subordinates, also they will
understand the views of high authority as well.
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 Leadership skill: Company have a small team, so leader must have strong leadership
skills that assist to keep motivate their staff members in order to get the best out of them.
This in turn improve productivity and enhance the company's performance as well. Delegation and time management skill: if members and owner do not possess this skill
then chances of business failure increases (García-González and Ramírez-Montoya,
2020). Therefore, managing time effectively and delegate the roles and responsibility to
each member assist to run an organization in effective manner. This further allows to
generate better revenue.
 Financial management: The team members and entrepreneur should have strong
financial management skills that assist to manage the cash inflows and outflows in better
manner. With the help of such competency, owner is able to forecast the cash and
monitor profit and loss.
SMART Objectives
 To increase the customer, base up to 20% within 1 year by offering organic products
 To raise the sales of a company by 10% within 1 year.
Pestle analysis
In order to examine the external factor that directly affect the business performance,
Pestle framework is used. This is as mentioned below:
Political factor: The revenue and profitability of a grocery store is affected by
government policy and international trade law. Thus, each country abides by their political
regulation that affect the business performance (Song, Sun and Jin, 2017). Similarly, fluctuation
in tax rate of UK might increase the prices of offered products within Go Organic and this cause
negative impact upon sales. That is why, stores must comply with guidelines proposed by
government in order to run business in effective manner.
Economic factor: It is deal with fluctuation in economy of a country. Due to pandemic,
the economy of UK is hit in negative way, as a result the buying power of a customer is also
decreases. Thus, to deal with such factor quoted company may offer the products at low price so
that consumer may invest, this helps to enhance the profitability as well.
Social Factor: Consumer preferences are the main social factor affect the industry and
now a day, individuals shift towards online purchasing (Pan, Chen and Zhan, 2019). As Go
Organic is a small departmental store and did not deal online so it might affect the business
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profitability. On the other side, through market research it is analyzed that customer prefer
organic products due to having health issues. Therefore, understanding this, it will open store
which contain only organic products.
Technological factor: In the modern era, most stores uses variety of technologies in
order to manage the business operations like adopt new system, software etc. Adoption of
technical systems is essential for managing the inventory, getting customer orders, making
payments and number of operations (ThomasArrigo and et.al., 2020). Business has to buy
software, tools and the equipment to manage the business. If company do not adopt for technical
advancement in the company it will not be able to compete successfully in the market.
Legal factor: Every business has to comply with the legal rules and regulations
applicable to it. A company operating in multiple regions has to comply with legal and statutory
requirement of each region. As the business is entering into market it has to comply with
different regulatory requirements related to registration, establishment of business, trading
license and filing of timely financial statements to the respective authorities. Business has to
remain updated with statutory laws and regulation and changes in them so that they are compiled
timely avoiding penalty.
Environment factor: It could be seen that environment exploitation has raised to
significant level by the businesses. There is increased water and air pollution from factories
harming the environment. Businesses are expected to undertake their corporate social
responsibility towards the environment (Matovic, 2020). Such businesses gain market
recognition and also gain trust of society. Business should undertake the responsibility towards
society through conducting social welfare programs and charity for education.
Competition
Particulars Go Organic Plant organic Organic & Natural
Product Store deal in three section
i.e. beverages, herbal
beauty products and food
product (puffed snacks,
candies, dried fruits,
Gulten free cookies)
The company deal in
food, beverage, desert,
dairy products,
vegetables and fruits
It offer wide range of
organic foods,
beverage, home care
products and beauty
products
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Price It uses penetration pricing
strategy
Planet Organic offer
products by using
skimming pricing
strategy (Tench and
Topić, 2017).
It uses competition
pricing strategy in
which prices are
fluctuate by analyzing
rival's pricing strategy.
Promotion Go organic will promote
products using social
media marketing which is
most useful today. and
traditional methods of
newspaper and magazines.
It promotes its product
through digital
marketing channels
and television and
newspaper ads.
It uses both traditional
and modern methods
of promoting the
products and conducts
promotional
campaigns across
different location
(Sudana and et.al.,
2019).
Marketing mix
Product: Go Organic offer range of organic products i.e. Beverage in which wide variety
of energy drink and juices. Further, in herbal beauty product quoted firm will sell organic hair
spa cream, mascara, body lotion etc. Next is food which includes organic pasta, spices, grain etc.
Price: Quoted firm will use penetration pricing strategy which helps to attract the range
of customers because it offers product at low rate.
Place: The company will establish it store in Manchester City, England because there is
no organic store and also, there is a high demand of organic product as well.
Promotion: In order to promote the products, company will use only modern form of
marketing tools i.e. weekly post on Facebook, Twitter. Further, it will have designed own
website through which customer will deal directly to the store.
Process: The process of a company is simple because all three sections are properly
deigned and signs will be used to show the path of each section for customers. Also, the billing
system will be simple to use because for each cash counter, one sales boy will be hired in order
to enhance customer service.
People: The company's key people will be its employee, customers and owners.
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