This report discusses the business plan of Annie Foods, a food delivery service started during the pandemic. It covers the industry analysis, product description, competitor analysis, operation plan, risk and contingency plan, sales and marketing strategy, and more.
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Entrepreneurship
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Executive summary Thispandemichaschangedlivesofmanypeopleregardingtheirbusinessandjobs. Entrepreneurship is the process of starting an enterprise from the scratch. The people who lost their job amidst Covid - 19 have started their own business from the little amount of saving they had. This report explains the business plan of one company which is started recently.
TABLE OF CONTENTS INTRODUCTION...........................................................................................................................4 Business details...........................................................................................................................4 Location.......................................................................................................................................5 Industry analysis..........................................................................................................................5 Product description......................................................................................................................7 Competitor analysis.....................................................................................................................7 Operation plan..............................................................................................................................8 Risk and contingency plan...........................................................................................................8 Sales and marketing strategy.......................................................................................................9 Finance and funding strategy.....................................................................................................10 Management Team.....................................................................................................................11 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................12 Books and Journals....................................................................................................................12
in the streets and areas of Edinburg. The population in Edinburg comes within the audience which the company is trying to target. Moreover, Edinburg has easy and reasonable access to the materials and supplies required for the business. Working in the location where the food services are famous will attract the customers by the market reputation. This is an effective way of gaining the attention of customers (Olanrewaju, and et.al., 2020).Another way where the customers can access to the company’s services are through online modes. This pandemic has made the use of internet and online platforms increase a lot. Most of the customers plan to order from online services rather than coming out of their house and exposing into the effects of Covid. Industry analysis Pestle analysis It is very obvious that the food industry is a very strong industry all around the globe. There are some factors which plays an important role in the working of food business. These factors are: Political:The public health policies are pushing the food companies like Annie foods to add healthier options in their menu. The food must be made of lower sodium and sugar intakes. The government has also laid the expansive regulatory frameworks which includes the cleanliness and hygiene regulations for the kitchen and the standards for storing and transporting the food. All these political regulations make the food industry one of the most tightly regulated industry. The customers of the company must not be offered a poor quality nutrition. Such complex conditions in the regulation cuts the profit margin of small companies like Annie. Along with this, due to pandemic, government has become stricter especially for the food related companies. The imposition of lock downs have made it hard for the companies like Annie foods to manage their materials and deliver to some hotspot areas. Economic:The economic condition of the country is very important for the company to run smoothly and profitably (Zahra, 2021). The high rates of unemployment has affected the progress of company. Low income people believe that making food in the house is a cheaper option than ordering from outside. The healthy food meals offered by Annie foods is more expensive when compared to the fast food and other cuisines. Moreover, the general trend is to get richer and thus people have more money to spend on luxury restaurant. This affects the
business of Annie foods to compete with the premium class food services. Labour costs are increasing day by day which is becoming expensive for Annie foods. This increase in rates is a result of growing demands for the employee and higher government expectations for minimum wages. The increasing labour costs results in less margin for the business and thus less profit. Social:The trends in the industry of Annie foods shifts based on the needs and requirements of customers. Annie foods is forced to produce healthier options in their variety of food they offer. This is because people are more interested in maintaining their health and staying fit. There is a rise in organic and vegan products more than ever. These changes in the lifestyle of people have brought many changes in the making of food within Annie foods. People are looking to healthier options to fuel their body which Annie foods must adapt in order to survive the market. Along with this, people also have the individual dietary preferences which must be fulfilled by the company (Drobyazko, and et.al. 2019). This has led to customers putting higher expectations on the companies running in food industry. Annie foods have to make certain changes to make their customers happy and satisfied. Technological:The growth of technology in past few years is outstanding. Technology is used in the food industry as well. It can help Annie foods to gain a competitive advantage by using technology in the making of food labels and production process. Technology has created many types of automation which includes the self-checkout system and online ordering system. Such technology is made to make things easy for customers. Environmental:The food industry is not just pivoted towards the healthy food but also the environmental repercussions of the food that people eat. Meat cause harm to the environment as its production and making of red meats uses large amount of water and form a high level of carbon footprint. Along with the meat industry is tearing down forests to create space for farms. Annie foods must consider the negative impacts of their business. Legal:Annie foods has to follow the strict rules and legislature which is related to the making of foods and maintain the standards of the place (Ruchkina, and et.al. 2017). The food business must be extremely careful in ensuring to stay within the boundaries of rules and prevent from having any law suits regarding the quality of food offered by Annie foods.
Product description Annie food place offers a wide range of dishes to fulfil the cravings of their customers. They have divided the customers into different segments based on their choices and priorities. The age of the customers is an important matter in the area of food. Annie offers food according to the requirements depending on the age (Chowdhury, Audretsch, and Belitski, 2019.). Small kids prefer less spicy food and elderly people are more into soft food items. The company considers all this options in their food menu. The food delivered by the company is done a whole hygienic method with the availability of no contact services. Along with this the company offers many meal kit services for the people working and have no time to cook. Another type of product offered by the Annie foods place is the availability of dietary food which is done by considering the nutrition specialists. This a great service offered for the people who are motivated to stay fit and healthy. The food services have the cuisines of the local taste as well as some dishes based on other cuisines like French and European. Amidst this pandemic, Annie foods also added the food which will help in boosting the immunity of the customers. The making of all the food is done very hygienically, the material used are fresh and the packages to store food are worth the investment. Competitor analysis Porter’s five forces Threat of new entrant:This threat is high in the industry of Annie foods. It is because the presence of very less barriers to entry this market. Setting a food service business is a very cheap way of stepping into an entrepreneurship. There is an easy access to collect funds for starting a food business. Thus, threat of new entrants is very high. Threat of substitution:Threat occurs when the demand of the product is affected by changing prices coming from the substitution product. It occurs due to the competition in price. Annie foods have to maintain the average checked price to avoid losing any customers. This threat is high. Bargaining power of buyer:The ability of the buyer’s increase which can result in forcefully reducing the prices. This power increases with the purchase decision. When more amount of products are purchased then the power of bargaining is enhanced. Customers demand good food quantity in an affordable price. This power is comparatively low.
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Bargaining power of suppliers:It is related with the given product and services. The materials required for food are from external sources. The suppliers selling the meat can range the price according to the company (Landström, 2020). On the other hand the supply of organic products and antibiotic free meat costs more for Annie foods. This forces is low. Intensity of rivalry:Competition in the food industry is very high. Thus companies like Annie foods must focus on gaining competitive advantage. This can be done by changing price and bringing improvements in the product and its quality. Rivalry is increased when the firms are competing against the same customers. Revenues can be increased through the expansion of market. This force is high. Operation plan Operations is known as the activities and tasks performed on daily basis for the growth of business. These activities will help the enterprise become a success and achieve the desired goals. The operation of the business is done keeping the required items well inside the budget of the company. It is important for any business to keep the resources become available at prior times especially in the industry of the Annie foods. The required products are ordered during the time when they are best in the quality and well before from they are needed in the kitchen. This helps in avoiding any delays of food services to the customers (Brandini, 2020). Being in the food industry, Annie foods offers wide variety of food products to its customers based on their preferences. The business operations of the company also include the department responsible for advertising the company and its products to reach out to large audience. The sales person of the company makes sure to convince some groups of people to try the products offered by Annie foods. Along with this, the company has also opened various ways of payment which includes the online portals as well as cash on delivery to keep it easy for the customers. There are a group of people working in the company to handle the online platforms of the company and manage the business operations on these channels. Risk and contingency plan For every business working in the food industry will face one or the other risk and contingencies. Products related to the food are not viable and available at every time. Hot serving foods are popular during the winter while the items supposed to serve in low temperatures are more in demand in winters. Along with the there are many factors which affects the demands of certain
food items which includes the seasonally available food products and raw materials. The craving of customers changes every time they are out for a meal. It is hard to identify the needs and popularity of food items as people have become more unpredictable in their choices. The economy of the country plays a huge importance in the business of Annie foods. The impact of pandemic as well as the effects of Brexit has changed the businesses and source of income for majority of the population. People are spending less of outside food and more on raw material to cook in the house which is a cheaper option. Annie foods provide its food and services in Edinburg locationwhich is popular for food industry. Thishas createda high level of competition among similar companies like Annie foods. Sales and marketing strategy The marketing mix strategy of the Annie foods is: Product:Products offered by Annie foods are the food and meal deals which are popular among the population of UK. The food cuisines of Annie foods are based on the people leaving in the nearby areas where the company delivers its food. They even offer the special dietary and vegan options for the people prioritising that. The company is open to make customisable food options related to the preferences of the customers (lut, Teller, and Floh, 2018). Price:The process range offered by Annie foods is very competitive. The company offered good quality of food items in affordable prices along with having enough quantity to make the purchase worthy. The dietary food options are a little bit expensive than the normal food as the materials and process of making them required lot costs. Place:The Company is providing in services in the area in and nearby the Edinburg. This is a popular market for food and related products. Working in such place comes with many opportunities for Annie foods. The location gives access to the material needed in the making of meals easily. Promotion:Annie foods has not lacked in promoting their company. The company is very active on online and digital platforms for social media. The company keeps posting pictures of mouth-watering food items which makes the people crave for it. This promotion strategy helps the company attract many potential customers.
Finance and funding strategy Starting a business of any types either small or large needs its financial and funding status. Investing in a business comes with risks and obstacles. In a market to start a quick business one needs funding. One can apply for a loan, short-term or long term-loan. In many ways a funding can be done. Working Capital Loan: For a business which is a small one, this type of funding is best and very resourceful. This loan leads to fulfil short-term needs of the company. In this business of food service, if person needs money on daily basis then this loan can be very much helpful. In this loan the funding is designated or set for a half to one year. The amount is too repaid with some percent of interest along with the principle amount. And this percent is on the basis of assessment of credit risk of a business. Crowd funding: These days’ technology and online stuff are very much used. So for the people who likes to do things online then this type is made for them. In this funding a person can finance its business via internet by some investors group. And this funding is very much helpful as the details and how much the person has spent from the loan is directly in front of them, in their hands. With the help of the mobile phone the person can directly see the details as well as the status. Crowd funding is a group financing individuals that help in business ideas in reaching out to various prospective investors through different platforms. And the investments being done can either be debt or equity basis. Many bonus or benefits and awards are given in trading or in exchange for investments, and these awards are given through their websites. Bank loans: It is a very common platform that provides loans to small businesses. It gives a very good record and collateral. A person can choose options like long-term loan or short-term loan per their needs. Management Team Human body cannot work with a single cell it needs different cells to do their particular functions the same is with a business. A company or an organisation does not work from one single
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person. It needs a team, it needs employees. Businesses have many responsibilities and different roles to play. These roles and responsibilities are done by the teams and the employees. There are many different persons for different work and these people stand on different posts. In a food service business such as Annie foods, many people are required. This is a food business and the most important person for that is Chef (Pomering, 2017). Without the Chef business cannot work. Even if it is a small business it doesn’t mean to have only 1 chef, it can have two to three chefs. The next thing needed is a person to deliver food, if there is no one to deliver food then it doesn’t make sense to have a food service without the food being delivered. This business needs a person for seeing finances and to handle the funding and finances. The person given this work must be a trust worthy person, the person who can handle the pressure of how to and how much to spend on things. So a management team is a must require for a business. CONCLUSION It can concluded from this business report, the complete business plan and strategies of a small company like Annie foods. It deals with the industry factors which can influence the business of the company in either positive or negative way. The different of funds used in the working of business is explained in the report along with the risks which comes with working in food industry.
REFERENCES Books and Journals Anderson, B.S., Wennberg, K. and McMullen, J.S., 2019. Enhancing quantitative theory-testing entrepreneurship research. Journal of Business Venturing. 34(5). p.105928. 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. Brandini, A., 2020. Food industry dynamism and evolving business models: food delivery system as a manifestation of food industry's evolution. Chowdhury, F., Audretsch, D.B. and Belitski, M., 2019. Institutions and entrepreneurship quality. Entrepreneurship Theory and Practice. 43(1). pp.51-81. Drobyazko,andet.al.,2019.Entrepreneurshipinnovationmodelfortelecommunications enterprises. Journal of Entrepreneurship Education. 22(2). pp.1-6. Landström, H., 2020. The evolution of entrepreneurship as a scholarly field. Foundations and Trends® in Entrepreneurship. 16(2). pp.65-243. Olanrewaju, and et.al., 2020. Social media and entrepreneurship research: A literature review. International Journal of Information Management. 50. pp.90-110. Pomering,A., 2017.Marketingfor sustainability:Extendingtheconceptualisationofthe marketingmixtodrivevalueforindividualsandsocietyatlarge.Australasian Marketing Journal (AMJ). 25(2). pp.157-165. Ruchkina, and et.al., 2017. Small and medium enterprises in the context of regional development and innovations. Journal of International Studies. 10(4). Wadhwani,andet.al.,2020.Context,time,andchange:Historicalapproachesto entrepreneurship research. Strategic Entrepreneurship Journal. 14(1). pp.3-19. Zahra, S.A., 2021. International entrepreneurship in the post Covid world. Journal of World Business. 56(1). p.101143.