Entrepreneurship in the Food & Beverage Industry

This report explores entrepreneurship in the food & beverage industry, focusing on a hypothetical business called Spicy & Treaty. It covers industry analysis, operations and management team plan, marketing plan, and financial plan. The food & beverage industry is undergoing rapid transformation and innovation, and the report discusses the challenges and opportunities in this sector.

Entrepreneurship

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Executive Summary.....................................................................................................................1
Industry Analysis.........................................................................................................................1
Operations and Management team Plan......................................................................................3
Marketing Plan.............................................................................................................................5
Financial plan...............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurship is considered as act of developing a business while formulating as well as
scaling is to produce profitability. Moreover, within competitive as well as post COVID-19 era,
technology incorporation in product or procedures has become paramount (Akpa and et. al.,
2020). The firm have to bring innovation within marketplace as it aids them to grab the attention
of consumers. For this report the chosen firm is Spicy & Treaty which is a hypothetical business
that operates their functioning within food & beverages sector. It is basically located in London,
UK and deals in facilitating fast foods. The Topics which are going to be covered in this report
are description about business, Industry analysis, operations and management team plan.
Moreover, the marketing plan is also explained. Apart from this, financial plan is also developed
by incorporating various sources of finance.
MAIN BODY
Executive Summary.
Business plan is developed for new ventures names as Spicy & Treaty that would operates
their business in food & beverage industry. As COVID-19 pandemic situation is going on at
present time so this impact all business including respective one. For instance, they would plan
to formulate provide quality and healthy food items which is made up of organic ingredients and
also used AI technology for providing online service through drone delivery. Additionally, they
apply porter’s five forces model to understand the business attractiveness and competitiveness.
Additionally, operational, management team, marketing and financial plan is formulated for
knowing all aspects before introducing new ventures with UK marketplace.
Industry Analysis
Food & Beverage is considered as business categories which are complex international
accumulation of diverse sectors which seeks into food processing, manufacturing, food services
and others. Respective industry is going through rapid transformation along with advance trends
as well as innovation into particular areas (Claver-Cortés and et. al., 2020). Moreover, the
international food & beverage market is anticipated to develop form $ 5943.8 billion in year
2019 to $6111.1 billion in year 2020 at compound annual growth rate of 2.9%. The low increase
is specially due to monetary slowdown across countries thanks to the COVID-19 outbreak and
the measures to comprise it. The marketplace is then expected to get better and grow at a CAGR
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of seven% from 2021 and reach $7527.5 billion in 2023 (Global Food and Beverages Market
(2020 to 2030) - COVID-19 Impact and Recovery, 2020).
Figure 1, Revenue growth
(Source: Food & Beverages, 2020)
Figure 2, Sales Channels
(Source: Food & Beverages, 2020)
Porter’s five forces model is considered as methods to determine business competitions
as well as examine industry attractiveness. The Spicy & Treaty owner would apply respective
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framework so that they could able to analyse the competition and attractiveness of business. This
model incorporates five forces all of them are described underneath:
 Competitive rivalry: Competition within market area would drive down the product costs
as well as also minimise the level of profit. Spicy & Treaty would plan to perform its
business into competitive sector. So, for improving its performance, they develop a
sustainable differentiation into its offerings in order to compete with its rivals.
 Bargaining power of suppliers: Within market areas, Food & Beverages firm purchase
raw material for several suppliers. So, this is the reason that suppliers are much powerful
as well as also utilise the negotiation power for extracting higher procedures from entity.
Therefore, this is essential for Spicy & Treaty to develop efficacious chain of supply with
various suppliers so that profit could be simply enhanced within marketplace.
 Buyer’s power: Within market area, buyers are considered to be one of the vital aspects.
As they often desires and purchase effective product through paying least cost as
possible. Moreover, they could able to develop pressure on Spicy & Treaty as the
purchaser power is relatively higher. For improving its base of clients, firm have to
rapidly innovate their goods or services for their audiences at lower cost. It could be
contributing into building stronger base of clients at market area.
 Threats of substitutes: Within food & beverage sector, new offerings accomplish the
similar customer desires in specific manner as profit may get affected (Köbnick, Velu and
McFarlane, 2020). Therefore, this would be essential for Spicy & Treaty in order to being
service oriented beside product. In addition to this, they should also have to know about
the clients requirements for facilitating quality goods consequently. It could be
contributing towards improving its level of profit at market areas.
 Threats of new entry: Within food & beverage sector, the treats of new entrants is higher
as with enhancing consumer desires of new business are coming up. So, for maintaining
their position within market are they would has to facilitates quality and advanced
offerings to their clients at reasonable cost with an intent to maximise profitability.
Operations and Management team Plan
Within Food & Beverage industry, both operations as well as management plays vital role.
So, the operational plan for enterprises has been formulated based upon audiences’ desires and
tastes with intent to facilitate satisfaction within COVID- 19 times also. In respect of Spicy &
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Treaty as they would provide healthy and tasty food to their clients in which it might establish
and have its food. Therefore, their operational plan includes advance services. Moreover,
consumers could simply order their foods from its menu offered through them as well as
employees would render healthy and quality offerings to people. in addition to this, they would
facilitate authentic and standard taste of food or services to their clients as most of its ingredients
are organic. Moreover, as during pandemic situation the taking and ordering services is not safe
so respective entity’ s operational and management team decided to do delivery through drone
after post COVID-19 era (Kponee, 2020). Therefore, this helpful in for both customers and entity
as they would able to get needed and desires fast food along with safety with assistance of using
AI technology that is Drones delivery services. In addition to this, their outlets would be located
into crowded area in London UK and in this also they serve contactless services as it would plan
to serve to clients through drone. For their, online services it would provide mobile applications
and websites.
Apart from this, Spicy & Treaty’s management team is effectual as it would have smaller
team in which chefs are developing quality and organic foods as well as workers are facilitating
effective services to clients. Additionally, the consumers’ problems are undertaken as well as
keep focused towards it in order to make them satisfy. Beside this, firm required to work upon
their weakness that is Spicy & Treaty is new within specific market due to that lesser customers
would know about their management. So, it becomes essential drawbacks before firm at
commercial business. The competitors of Spicy & Treaty have stronger customers’ bases due to
their effective offerings. Also, it would perform upon transforming its weakness into strengths
through developing productive team. Along with this, through developing their effective
management system it would become competent to perform their business practices is much
efficacious way. Rather than this, their appropriate team management assists in attaining
expected business objectives. In respect of Spicy & Treaty, it has stronger relationship with
group members as well as undertakes them as part of enterprises in which employees are
included into its decisions. Also, their team members are free for putting its opinions as well as
render recommendations into business practices for improving its business performance. Whole
these small steps aid them to accomplish success and develop its brand name into market area.
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Marketing Plan
Marketing plan is considered as the report which highlights firm market strategy for
coming month, quarters and years. Moreover, the Spicy & Treaty’s marketing strategy is to
concentrates upon market area though facilitating board range of healthy as well as delicious
items to audiences (Lubawa, 2020). In addition to this, it would aid them to grab the attention of
new clients as they are rendering quality services along with effective tastes and preferences.
Also, they are determining the clients as well as marketplace desires for developing effective
tactics to gain huge market shares. Beside this, the respective firm could also position their
offerings with innovative core values for being stronger brand reputations. In addition to this,
they consider ways for visualising their existent into marketplace before positioning its enterprise
against rivals. The logo design, name and others have meaning behind this as well as they
consider support of Medias for positioning themselves successful within food & beverage sector.
Along with this, Spicy & Treaty business position itself within fast food into United Kingdom
marketplace in which they are rendering their offerings to targeted audiences.
In addition to this, Spicy & Treaty is taking steps for developing their offerings distinguish
from its rivals through facilitating advance delivery service through drone. Additionally, there
are several well known brands that perform into food & beverage industry so they might have to
face higher competition within market area. Respective firm would basically targets those
audiences who are very much keen interest towards fast foods and also focused towards their
health during pandemic times. So, they would able to understand their customer’s desires for
satisfying its requirements. Also, they could able to enhance their clients’ number through
facilitating them quality and innovative services that is not rendered through their rivals.
Beside this, the price utilised through Spicy & Treaty is reasonable as they are new within
marketplace so at beginning they opt lower pricing strategy and try to obtain huge market.
Basically, they targets teenagers who always prefer to spent smaller amount and thus they are
facilitating various kinds of food items at minimal cost (Oguka, Onwuka and Nwakoby, 2020)
. Also, the Spicy & Treaty is utilising several tactics of promotions for creating awareness
among UK people regarding their presence as well as ranges of food item and drone delivery
services. For instance, they would utilise social media marketing for attracting huge number of
audiences which is promoting its venture upon several known channels of social media like
Instagram, face book and others. With assistance of its own websites, they involve people with
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assistance of visual context and their new offerings. Along with this, their sales process is they
sell its food items in their outlets as well as rendering online services to their audiences through
drone’s delivery and through mobile applications. In addition to this, the distribution strategy
used by Spicy & Treaty is quite easy as they performing into London marketplace only so with
assistance of its collaborated mobile application services and drones services to distribute its
food items to audiences. Additionally, most of ingredients has been developed through them and
organic so would have lesser number of suppliers. This aids them to maintain stronger
connections with them.
Financial plan
Financial plan is considered as the comprehensive representation of present finances, its
goals as well as nay tactics that are sets to attain that (Omari and et. al., 2020). For instance,
Spicy & Treaty’s formulate pre- launch cash budget in order to know about their monetary
expenses and budget.
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CONCLUSION
Based upon the above report, this has been concluding that it is essential for any new
venture owner to formulate effective business plan. Moreover, Industry analysis is performed
with assistance of Porter’s five force model as it assists them to know about the business
attractiveness and competitiveness. In addition to this, operational and management team plan
are developed for understanding firm operative and administrative team and their contribution
and role towards attaining organisational objectives effectively. Along with this, marketing plan
is also developed as this aids entity to determined their pricing, promotion, distribution and
others strategy. All these help them to develop their business in effective and efficient way. apart
from this, financial plan is formulated so that they wou able to know about their required budget
and funds for their new business.
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REFERENCES
Books and Journal
Akpa, V.O. and et. al., 2020. Knowledge management and performance of organizations: a case
study of selected food and beverage firms.
Claver-Cortés, E., and et. al., 2020. Explanatory Factors of Entrepreneurship in Food and
Beverage Clusters in Spain. Sustainability, 12(14), p.5625.
Köbnick, P., Velu, C. and McFarlane, D., 2020. Preparing for Industry 4.0: digital business
model innovation in the food and beverage industry. International Journal of
Mechatronics and Manufacturing Systems, 13(1), pp.59-89.
Kponee, L.M., 2020. Job Rotation and Employee Turnover of Food and Beverage Firms in
Rivers State, Nigeria. IIARD International Journal of Economics and Business
Management, 6(1), pp.1-9.
Lubawa, G.G., 2020. Business Plan and Industrial Development: The Case of Family-Owned
Food Processing SMEs in Tanzania. In Handbook of Research on Institution
Development for Sustainable and Inclusive Economic Growth in Africa (pp. 231-253).
IGI Global.
Oguka, C.M.G., Onwuka, E.M. and Nwakoby, N.P., 2020. SUCCESSION PLANNING AND
ORGANISATIONAL CONTINUITY IN SELECTED FOOD AND BEVERAGE
FIRMS IN ANAMBRA STATE. INTERNATIONAL JOURNAL OF MANAGEMENT
AND ENTREPRENEURSHIP, 2(1), pp.158-170.
Omari, R., and et. al., 2020. Employment Potential of the Food and Beverage Sector in Ghana.
Pham, M.T.L., 2020. Business Plan-Viet Balo: The role of a business plan to a start up in the
food & beverage inudstry.
Online
Food & Beverages. 2020. [Online]. Available Through:<
https://www.statista.com/outlook/253/156/food-beverages/united-kingdom >.
Global Food and Beverages Market (2020 to 2030) - COVID-19 Impact and Recovery. 2020.
[Online]. Available Through:<
https://www.businesswire.com/news/home/20200514005421/en/Global-Food-and-
Beverages-Market-2020-to-2030---COVID-19-Impact-and-Recovery---
ResearchAndMarkets.com.
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