Entrepreneurship and Business Development: Developing a Sustainable and Organic Soy Milk Product

This report covers the development of a sustainable and organic soy milk product, including the key components of the concept statement, assessment of feasibility, value chain and business canvas, and risk management. The report also includes a PESTLE analysis, STP analysis, competitor analysis, and marketing strategy.

Entrepreneurship and
Business Development

Table of Contents
INTRODUCTION...........................................................................................................................3
Explanation of the business concept including the key components of the concept statement. .3
Assessment of Industry, Market, Organizational and Financial Feasibility...........................4
Main components of value chain and business model canvas in relation to proposed business.7
Identification of risks and explanation of risk management................................................10
CONCLUSION .............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Entrepreneur is an individual who develops new business, bearing all the risks and
enjoying of rewards. The process of setting up of business is known as entrepreneurship. They
have the ability to establish, administer and succeed in the start up venture. A new organisation is
taken as base company where they launching new product. In this report, it cover the key
elements of concept statements such as product or service, target market, special attributes,
values, scale of the newly proposed business, location and other. Along with this, it also
includes assessment of industry, market organizational and financial feasibility. Moreover, an
assessment of value chain and business canvas with quantitative and qualitative models and
concepts are also mentioned.
Explanation of the business concept including the key components of the concept statement
Product description: The new product offered by the organization is Soy Milk which will
be made from soaking and grinding of soybeans. This product will help in supporting healthy
muscles and organs. It contain omega-3 fatty acids which is considered as healthy fats that the
body cannot form on their own (Costa and Pita, 2020).
Special attributes: This will be a new product for the organization to develop. They will
make sure to pack to in sustainable packaging and organic material. This will be the special
attribute of the product.
Target market: The target audience will be those who are lactose intolerance. People are
also switching to adopt veganism where they will only have plant based product. For the
organization, it would be beneficial to them while this product to these people.
Scale of business: The investment will be large for developing Soy Milk as soy will be
required which has to taken from farmers and grinding them. The organization will also make
sure to offer pack in sustainable package.
Location: The new product will be sold in UK and on different website. Also, the
organization will also introduce a store for selling (Kirby and El-Kaffass, 2021).
Who will be involved: The members such as employees, customers, suppliers and
investors will be involved.

Rationale for launching organic and sustainable skincare product: The UK is the
eleventh largest milk producer across the globe. There are around 12,000 dairy farms in UK and
they produced almost £15 billion liter milk each year (THE UK DAIRY INDUSTRY, 2020). It
has been predicted that there will be extra 210 m liters of milk by 2023-24 as compared to 2020-
21. There is an increased demand of milk is due to their reusable packaging to reduce plastic
waste.
The organization will be producing Soy Milk which is non dairy product. UK is the
global leader in plant based alternative. Plant based milk alternatives has achieved a success in
market £320.6 million in UK (From fresh alt milk to pea and coconut cheesecake: What is the
UK's 'next big think' in plant based?, 2021).
Assessment of Industry, Market, Organizational and Financial Feasibility
PESTLE analysis
Political factors: Brexit is the key factor which influence new start ups in the United
Kingdom.
Positive impact: There will be lower price because of Brexit which will enables
the new organisation to create stores at low price (Dana and Ratten, 2017).
Negative impact: There would labour shortage as there is less labour which will
automatically increase the labour cost for plant based organisation.
Economical factors: COVID 19 has create a huge impact on growth of start up
organisations.
Positive impact: Due to COVID 19, there is increase in demand of online
shopping which will helps the organisation to gain high sales.
Negative impact: COVID 19 has created a negative impact by halting the selling
of the new product.
Social factors: People are switching more towards plant based products and adopting
veganism.
Positive impact: The organisation will be able to attract more number of customer
as they are offering soy milk which is healthy.
Negative impact: The rise towards soy milk will increase in the competition from
dairy products.

Technological factors: One of the technological factor is that, they will be able to reduce
plastic waste and pack in a sustainable packaging
Positive impact: This would enhance the customer experience and would also
captivate customer's attention (Warhuus and et. al., 2021).
Negative impact: It could negatively effect the organisation if they are not able to
function properly.
Legal factors: The protection of individual property is considered as legal factor for
protecting intellectual property.
Positive impact: The organisation can use their trademark and patent in order to
protect intellectual property.
Negative impact: One of the negative factor is that, when there is lack of
enforcement of intellectual property law elevates the threat of counterfeit products.
Environmental factors: The increased environmental concern of customers will create
impact on organic and sustainable product.
Positive impact: The packaging will be able to attract large number of customers
and also by offering replacement milk product to soy milk (Vallaster and et. al., 2019).
Negative impact: One of the major impact on the organisation will be that, it
would impact
STP analysis
Segmentation: The process of segmentation is division of audience into various segments
as per different segmentation variables such as on the basis of demographics, geography, psycho-
graphic and behaviour. Demographic segmentation is the division of audience on the basis of
age, gender, marital status and so on. The geography segmentation is based on city, region,
country and many more. The personality traits, habits, attitudes and so on are under psycho-
graphic and in behaviour segmentation, purchases, interest are used to segment their audience.
The selected organisation will segment their audience on the basis of psycho-graphic. The
organisation will segment those which are incline more towards adopting veganism and having
plant based product.
Targeting: The target consumer segment for plant based product is determined by
psycho-graphic segmentation. It is because consumer behaviour change as people are switching

to adopt veganism and have plant based food. The organisation will be able attract those
customer which are health conscious (Farooq and et. al., 2020).
Positioning: The positioning in the market means where the product stands in the market.
This also means how the product will stand out of the crowd in the market and how it is better
then offerings of competitors. The organisation will be position its new product by conducting
various advertisements and promotional campaigns. They can use of social media for advertising
as it is powerful tool. They can use various social media platforms such as Facebook, Instagram,
Twitter and so on for promotional purposes.
Visions: The vision is to gain success and profitability in non daily industry.
Mission: The mission is to make a healthy product which could be accessible to all.
Competitor analysis
Porter's five forces
Intensity of competition: This element of this model is understand the level of
competitive intensity in the industry. The intensity of competition in non dairy industry is high.
Organisations such as Danone, Lactalis, Arla Foods and many more are some of the organisation
which are present in this industry.
Bargaining power of suppliers: The bargaining power of suppliers in plant based
industry is low as there are large number of suppliers which are selling many plant based
products in a sustainable packaging. Thus, there will be decline in the power of suppliers.
Bargaining power of consumers: The bargaining power of consumers will be be
moderate as there are large number of alternatives which are present in the industry that makes
similar products. There are many firms which are selling products which are high as well as
moderate in price. This will increase the bargaining power of consumers as they have many
alternatives to make purchase.
Threat of new entrants: The threat of new entrant is low in this industry as they the firm
will required high amount of investments for developing the products (VarkianiPor, Hosseini and
Samiee, 2019).
Threat of substitute products: Threat of substitute products will be high in this industry
as there is no other alternative of plant based product. Animal based product is still present but
people are switching to plant based for their health and environment. Therefore, there is no
alternative for plant based products which makes the threat of substitute product high.

Competitive advantage: The organisation has a competitive advantage as they are
offering soy milk which contain omega-3 fatty acid which a human body need but it does not
take it own. Plant based product are expensive in nature. This makes the affordable product of
the organisation which are selling at low price. The absence of low price in the industry makes
the organisation competitive advantage.
Marketing strategy
Product: The organisation will be offering soy milk which is health for a human body.
This product will also helps in maintaining a healthy body (Ma and Bu, 2021).
Price: The organisation will be using competitive pricing. This strategy includes prices of
the rival organisation when setting up of their price. They pricing strategy will be able to target
those who can afford to buy the product.
Place: The product will be selling through both online and offline platforms. The
organisation will sell the product using their website and also by setting up their physical
distribution stores in UK.
Promotion: The organisation will be promoting their products using social media. This
will be able to create awareness to large number of people at single platform. They could also
used print media for advertising themself in the country (Kim, ElTarabishy and Bae, 2018).
Market Growth strategy: The market growth strategy adopted by the organisation will be
market diversification. They are new organisation and they are launching a new product in the
market. This implementation of strategy will help the organisation in elevating their sales in UK.
They could also expand its business internationally for boosting their image in the industry.
Main components of value chain and business model canvas in relation to proposed business
Value Chain Components
Primary Activities
Inbound logistics: This activity involves managing and sourcing raw materials from
suppliers. The inbound logistics of plant based organisation will comprises of collecting
sustainable raw materials from suppliers at low prices. The firm would able to easily source high
quality raw materials from suppliers at low cost as large number of suppliers are selling similar
quality of products in UK.

Operations: This primary activity centres around converting raw materials into finished
goods. In context to plant based firm, automated manufacturing plants would be constructed to
produce soy milk. This manufacturing plant would construed to minimise energy consumption.
Outbound logistics: This element of the value chain includes delivering of finished goods
to consumers. The outbound logistics of the plant based firm encompasses of order processing,
packaging and shipping products. The firm would collaborate with third party logistic providers
to outsource warehousing and outbound transportation needs (Rath, Solano and Schutjens, 2019).
This is justified as third party firms with expertise in transportation and warehousing would
makes sure about that timely delivery of products to consumers.
Marketing and sales: The marketing campaigns developed by the organisation would
primary use digital platforms to promote products to customers. This includes partnering with
social media influencers to promote the new product of the organisation. This will assists the
firm in reach to health conscious consumers and increase sales of the organisation.
Support Activities
Human resource management: This activity concentrates on recruiting, training,
rewarding and retaining talented staff members. HRM department at selected organisation would
aiming to attract and retain talented employees who align with firm values towards health
consciousness. This would assists the firm in creating a workforce which is devoted towards
making plant based milk accessible to every individual and ensuring growth of the organisation
(Dheer, 2018).
Technological development: It is vital support activity as it assists the firm in
maintaining technical excellence and using innovation to gain competitive edge. The R&D
department at plant based firm would be funded regularly to develop innovations that minimises
cost and elevates quality of product. This would assists the organisation in developing unique
products and improving consumer experience and profitability by innovation.
Business model canvas
Consumer Segments: The primary consumer segments for plant based firm would be
customers who are inclined towards maintaining healthy lifestyle. Consumers in health conscious
segment are segmented by psycho-graphic segmentation and are wiling to pay premium prices to
maintaining healthy lifestyle. They consumers will be able to pay the price for the new product.

Value Propositions: The selected organisation delivers value proposition of health
conscious soy milk at premium prices. The consumer issue of not being able to buy plant based
product is resolved by value proposition. The customer is required to gain health conscious
product soy milk is mentioned by value proposition. The organisation make sure that they will
work upon increasing the sales of the organisation (Ratten, 2017).
Revenue streams: The revenue streams for an organisation refer to as the funds. The key
revenue stream is direct sale of health conscious soy milk by website of firm website and its
physical stores. E-commerce sites such as Amazon would also be utilised for distributing its
products and would showcase as revenue stream. Along with this, premium monthly subscription
is also a revenue stream for the selected organisation which would targeted to health conscious
consumers.
Channels: This component of the business canvas model encompasses of information
regarded to the main distribution networks used by the organisation. The website of the
organisation and e-commerce portals would be utilised to distribute soy milk. Physical store of
the firm are used by them to reach target consumers. A mobile application would also be reach
to health conscious consumers and provide premium services. This would allow the consumers
to have personalized experience to health conscious costumers.
Consumer Relationships: The health conscious costumer segment expects to establish
personalized relationship with plant based organisation. This relationship will be accomplished
by creating own mobile application in order to have personalized communication with
consumers.
Key Activities: The day to day operations of the organisation that create value proposition
for consumers are offer in this component of business canvas model. The primary activities
conducted by the plant based organisation are developing Soy Milk by using plant based
products, using social media marketing to create brand image, developing soy milk and sourcing
of plant based raw materials from suppliers (Robb, Rahn and Buffardi, 2020). Along with this,
collaborating with third party logistic providers to ship products to the consumer is key activity
of the organisation.
Key resources: The organisation would need the key resources such as human resource,
financial investment, transportation and warehousing. automation technology in order to operate
properly.

Key partners: This component of the business canvas model offers information about
most important partners. The investors in the plant based organisation are significant partner who
would provide key financial resources. The third party logistic provider are key partner of the
form who provide transportation and warehousing logistic and perform outbound logistics
activities.
Cost Structure: The primary costs for selected organisation are related to acquiring
human resources and automation technology to create manufacturing plants and achieve
marketing goals. Also, the cost of third party logistics and sourcing of raw materials is necessary
cost for the organisation (Shojaei and et. al., 2019).
Identification of risks and explanation of risk management
Financial Plan
Budget
Cash Flow

Risk Register
RISK SEVERITY RESPONSIBILITY MITGATION AND
CONTINGENCY
ACTIONS
SCORE
(out of 10)
Financial risk High Senior managers The identification of key
business milestones and
schedules to concisely states
time when debt investments
9

are necessary to reach next
key milestone. Clear and
concise connection of
developing route and
business plans would be
accomplished to reach
business milestones in
stipulated time. This would
minimise the financial risk
and assists in gaining
investment easily.
Commercializ
ation risk
High Company Director The managing of
commercialization risk
encompasses of inter
operating customers insights
to provide products which
elevates customers
expectations. The selected
organisation would take
customer feedback in order to
improve products (Xiao and
et. al., 2020). Frameworks
would be introduced to
measure commercialization
progress and report
accountability at main phases
of the commercialization
process. This will assists in
keeping everyone involved in
the project and minimising of
8

commercialization risk.
Intellectual
property
rights
protection
Moderate Chief legal officer The method to protect
intellectual property rights is
registering name, logo,
trademark of the organisation
at the intellectual property
office. Also, applying for
patent is also an effective
method of protecting
intellectual property of plant
based firm. The usage of
non-disclosure agreement
would also beneficial in
protecting intellectual
property rights.
7
Team risk Low Senior leaders Team risk refer to as those
risk which are related to
inability to create high
performing team. Different
leadership theories would be
utilised to enhance
confidence of staff members.
Along with this, free working
environment would also
created to have strong bonds
with employees and inspire
them to work with
dedication. Moreover,
employee reward and
recognition methods would
4

also beneficial in retaining
customers and increase team
motivation to minimise the
risks.
CONCLUSION
From the able discussion, it can be concluded that entrepreneur and business
development is stated as process of enhancing skill set and knowledge of entrepreneurs in terms
of development, organisation and management of an organisation, with awareness of all the risks
associated with it. In this report, it includes PESTLE analysis for analysing the macro
environment factors. Also, STP has been mentioned for identifying the target consumer base of
the organisation. Moreover, Porter's five forces and formulation of market strategy and growth
strategy is also includes. Furthermore, value chain analysis and business model canvas is
mentioned for comprehending the areas of organisation. This is also vital for a firm to determine
the potential risks and formulate risk management strategies to make sure about the success of
the organisation.

REFERENCE
Book and journal
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for future research. International Entrepreneurship and Management Journal, 14(3),
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Farooq and et. al., 2020. Comparative analysis of entrepreneurship and franchising: CSR and
voluntarism perspective. Voluntas: International Journal of Voluntary and Nonprofit
Organizations, 31(3), pp.581-586.
Kim, K. C., ElTarabishy, A. and Bae, Z. T., 2018. Humane entrepreneurship: How focusing on
people can drive a new era of wealth and quality job creation in a sustainable
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Ma, Z. and Bu, M., 2021. A New Research Horizon for Mass Entrepreneurship Policy and
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Rath, J., Solano, G. and Schutjens, V., 2019. Migrant entrepreneurship and transnational links.
London: Sage.
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collaboration between entrepreneurship and software engineering students. Journal of
Education for Business, 95(5), pp.321-330.
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in educational sciences. Journal of Science and Technology Policy, 12(1), pp.77-88.
Vallaster and et. al., 2019. Responsible entrepreneurship: Outlining the
contingencies. International Journal of Entrepreneurial Behavior & Research.
VarkianiPor, N., Hosseini, S. M. and Samiee, R., 2019. Providing the Entrepreneurship
Development Model Women with a sustainable rural development appriach in Gulistan
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Online
(THE UK DAIRY INDUSTRY, 2020) [Online] Available through; <https://www.dairyuk.org/the-
uk-dairy-industry/>

(From fresh alt milk to pea and coconut cheesecake: What is the UK's 'next big think' in plant
based?, 2021) [Online] Available through;
<https://www.foodnavigator.com/Article/2021/04/19/What-is-the-next-big-thing-in-the-UK-
plant-based-scene>