Individual Business Plan Report for Handmade Chocolates Business
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AI Summary
This report provides a detailed business proposal plan for starting a new handmade chocolates business, including industry analysis, product description, USP and competitor analysis, operations plan, sales and marketing strategy, financial projections, and management plan.
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Individual Business
Plan
Plan
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Executive Summary
The main objective of this report is to basically develop a deeper understanding of the
entrepreneurship and the creation of the business enterprise. In the present report it comprises of
business proposal plan in detailed manner with a proper structure that helps in attainment of the
knowledge and taking into consideration various factors before starting a new business. It
comprises of the various marketing strategies, industry analysis and competitive analysis along
with various other factors.
The main objective of this report is to basically develop a deeper understanding of the
entrepreneurship and the creation of the business enterprise. In the present report it comprises of
business proposal plan in detailed manner with a proper structure that helps in attainment of the
knowledge and taking into consideration various factors before starting a new business. It
comprises of the various marketing strategies, industry analysis and competitive analysis along
with various other factors.
Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business Details......................................................................................................................1
Vision of the business.............................................................................................................1
Mission and objectives...........................................................................................................2
Location..................................................................................................................................2
Product Description................................................................................................................2
Industry analysis.....................................................................................................................3
Outlook for the future.............................................................................................................4
USP and competitor analysis..................................................................................................5
Competitors in the Chocolate Industry...................................................................................6
Unique value proposition.......................................................................................................7
Operations plan.......................................................................................................................8
Risk and contingency plan......................................................................................................9
Sales and marketing strategy................................................................................................11
Finance and funding plans....................................................................................................12
Management Team...............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business Details......................................................................................................................1
Vision of the business.............................................................................................................1
Mission and objectives...........................................................................................................2
Location..................................................................................................................................2
Product Description................................................................................................................2
Industry analysis.....................................................................................................................3
Outlook for the future.............................................................................................................4
USP and competitor analysis..................................................................................................5
Competitors in the Chocolate Industry...................................................................................6
Unique value proposition.......................................................................................................7
Operations plan.......................................................................................................................8
Risk and contingency plan......................................................................................................9
Sales and marketing strategy................................................................................................11
Finance and funding plans....................................................................................................12
Management Team...............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
INTRODUCTION
The Individual business plan basically relates to the process of construction of the idea in
relation to provision of the services or goods for the purpose to provide value to the consumers.
It is basically related to the process of the strategies and devising plans after having deep
analysing and viability of the product in the market. In context to Business plan, it is basically a
document that covers detailed information about the management and operations process of
starting a new business that comprises of the vision, mission and objectives of the organisation.
The report will cover a business proposal plan which is in relation to the start up of new
handmade chocolates business. In this report, various factors that are to considered before
establishing a start-up is discussed including industry analysis, product description, USP and
competitors analysis, operations plan, sales and marketing strategy, financial projections etc. In
addition to this, it also discuss the management plan and the ability of entrepreneur to manage
the new business venture (Tokdemir, Erol and Dikmen, 2019).
MAIN BODY
Business Details
The small sized business venture of the handmade chocolates would be operated and
launched under the label of Dream Chocolates located in London, United Kingdom offering a
range of handmade chocolates, sugar free chocolates, dark chocolates, protein chocolates etc.
( Xu, 2020).The main motivation and objective behind choosing this idea is to fulfil the demand
of individuals who are looking for best quality handmade chocolates. This is highly emerging
among the individuals for the purpose to celebrate various occasions ( Zulkornan and et.al.,
2021).
Vision of the business
The vision of the start-up is to establish core values and operate ethically and induce a
customer satisfaction with the help of offering best services. The chocolate business aims to
attain engagement and wants to attain their appreciation for the purpose to fulfil their
requirements according to the specifications. The main objective is to build a brand image which
is known for the finest services in the market. The business is focusing on adoption of the eco-
1
The Individual business plan basically relates to the process of construction of the idea in
relation to provision of the services or goods for the purpose to provide value to the consumers.
It is basically related to the process of the strategies and devising plans after having deep
analysing and viability of the product in the market. In context to Business plan, it is basically a
document that covers detailed information about the management and operations process of
starting a new business that comprises of the vision, mission and objectives of the organisation.
The report will cover a business proposal plan which is in relation to the start up of new
handmade chocolates business. In this report, various factors that are to considered before
establishing a start-up is discussed including industry analysis, product description, USP and
competitors analysis, operations plan, sales and marketing strategy, financial projections etc. In
addition to this, it also discuss the management plan and the ability of entrepreneur to manage
the new business venture (Tokdemir, Erol and Dikmen, 2019).
MAIN BODY
Business Details
The small sized business venture of the handmade chocolates would be operated and
launched under the label of Dream Chocolates located in London, United Kingdom offering a
range of handmade chocolates, sugar free chocolates, dark chocolates, protein chocolates etc.
( Xu, 2020).The main motivation and objective behind choosing this idea is to fulfil the demand
of individuals who are looking for best quality handmade chocolates. This is highly emerging
among the individuals for the purpose to celebrate various occasions ( Zulkornan and et.al.,
2021).
Vision of the business
The vision of the start-up is to establish core values and operate ethically and induce a
customer satisfaction with the help of offering best services. The chocolate business aims to
attain engagement and wants to attain their appreciation for the purpose to fulfil their
requirements according to the specifications. The main objective is to build a brand image which
is known for the finest services in the market. The business is focusing on adoption of the eco-
1
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friendly methods for the purpose to promote sustainable practices and to avoid of plastic
packaging (Atanasiu, 2021).
Mission and objectives
The main mission of the start up is to serve the customers with the best qualities of the
handmade chocolates and also focusing on creation of the value for them (Bhattacharyya and
Fernandes, 2019). The main objective of the organisation is to attain a desired level of
development and growth with the help of earning high profit margins through catering the wants
and needs of the customers in the most responsible and ethical way. The business aims to
establish good interpersonal relations and maintaining a reputed image with their loyal customers
through offering them best quality deals and treating them in a right way.
Location
The chocolate business would be situated in the popular market which is highly central
and busy are where the products and services of the business would be highly accessible and
approachable for the people. The locality of the business venture is directly in link with the
footfall and customers are likely to attract. The Dreamy Chocolates will ensure that the
commercial location would be able to induce the large customer base through attracting them and
focusing on grabbing their attention (Chen, Harncharnchai and Saeheaw, 2022).
Product Description
The range of products that would offered by the Dreamy chocolates would comprise the
following:
Handmade chocolates
Sugar free chocolates
Chocolate syrups
White chocolate
Dark Chocolate
Couverture Chocolate
Milk Chocolate
2
packaging (Atanasiu, 2021).
Mission and objectives
The main mission of the start up is to serve the customers with the best qualities of the
handmade chocolates and also focusing on creation of the value for them (Bhattacharyya and
Fernandes, 2019). The main objective of the organisation is to attain a desired level of
development and growth with the help of earning high profit margins through catering the wants
and needs of the customers in the most responsible and ethical way. The business aims to
establish good interpersonal relations and maintaining a reputed image with their loyal customers
through offering them best quality deals and treating them in a right way.
Location
The chocolate business would be situated in the popular market which is highly central
and busy are where the products and services of the business would be highly accessible and
approachable for the people. The locality of the business venture is directly in link with the
footfall and customers are likely to attract. The Dreamy Chocolates will ensure that the
commercial location would be able to induce the large customer base through attracting them and
focusing on grabbing their attention (Chen, Harncharnchai and Saeheaw, 2022).
Product Description
The range of products that would offered by the Dreamy chocolates would comprise the
following:
Handmade chocolates
Sugar free chocolates
Chocolate syrups
White chocolate
Dark Chocolate
Couverture Chocolate
Milk Chocolate
2
Baking Chocolate
Chocolate Bar
Chocolate Chips
The products of the enterprise would be produced with the assistance of the skilled and
highly experienced individuals and would be offering a range of varieties in the above mentioned
categories of the items. The chocolate item will be able to attract the customers through offering
them with the great taste while adoption of the specialisation and customisation in items
designed as per the preferences of the customers. The chocolate business will buy the patents in
relation to the logo and the packaging of the bakery for the purpose to reduce the threat of
imitation of the same designs through somebody else (de Vries, Vee and de Vries, 2018).
Industry analysis
Size of the market
In context to the Dreamy Chocolates, the chocolate industry is growing in a rapid manner
with increase tendency of the individuals towards the consumption of variety of chocolates with
increase in the tendency of the individuals. The United Kingdom has a potential market in the
sector which basically offers a range of chocolates to the buyers. The chocolate industry of the
UK is worth approximately £8.7bn and is accounted for the annual growth rate of 0.9%n in the
years between 2017 and 2022. It is one of the most important sector involves the various
business operating in offering the bakery products.
Barriers to Entry
The success and viability of the business venture in the long run is totally dependent upon
the strategies and investment of the organisation to gain competitive edge. It also requires
abundance of financial resources in order to offer the wide range of varieties to the consumers
and offering best quality. The chocolate industry is full of potential rivals and thus it is important
for the venture to devise constructive strategies in order to drive its long term growth.
Threats to market
The growing awareness of customers towards health issues has made them highly
conscious regarding their consumption of patterns and thus trend of sugar free and gluten free
products is increasing day by day. Thus it is created challenges for the new emerging businesses
3
Chocolate Bar
Chocolate Chips
The products of the enterprise would be produced with the assistance of the skilled and
highly experienced individuals and would be offering a range of varieties in the above mentioned
categories of the items. The chocolate item will be able to attract the customers through offering
them with the great taste while adoption of the specialisation and customisation in items
designed as per the preferences of the customers. The chocolate business will buy the patents in
relation to the logo and the packaging of the bakery for the purpose to reduce the threat of
imitation of the same designs through somebody else (de Vries, Vee and de Vries, 2018).
Industry analysis
Size of the market
In context to the Dreamy Chocolates, the chocolate industry is growing in a rapid manner
with increase tendency of the individuals towards the consumption of variety of chocolates with
increase in the tendency of the individuals. The United Kingdom has a potential market in the
sector which basically offers a range of chocolates to the buyers. The chocolate industry of the
UK is worth approximately £8.7bn and is accounted for the annual growth rate of 0.9%n in the
years between 2017 and 2022. It is one of the most important sector involves the various
business operating in offering the bakery products.
Barriers to Entry
The success and viability of the business venture in the long run is totally dependent upon
the strategies and investment of the organisation to gain competitive edge. It also requires
abundance of financial resources in order to offer the wide range of varieties to the consumers
and offering best quality. The chocolate industry is full of potential rivals and thus it is important
for the venture to devise constructive strategies in order to drive its long term growth.
Threats to market
The growing awareness of customers towards health issues has made them highly
conscious regarding their consumption of patterns and thus trend of sugar free and gluten free
products is increasing day by day. Thus it is created challenges for the new emerging businesses
3
to make healthy chocolates while maintaining great taste and thus it would be challenging for the
chocolate industry to comply with the standards and changing preferences of the organisation.
Outlook for the future
Throughout the next five years from 2026-27, the revenue of the chocolate industry is
ascertained decline from an annual compound rate of 0.6% to £8.4 billion. The growing trend
among the individuals to consume healthy food is likely to influence the purchasing power of the
customers through putting pressure on the consumption of the sugary products. However, the less
certainty of the economic conditions which is due to expected recession in the current year
implies the ease on inflationary pressures. Moreover, it is forecasted that disposal incomes of the
customers will increase which would uplift their spending on purchase of the commodities of the
chocolate industry.
Pestle analysis
Pestle analysis is a framework to analyse the factors of external business environment
affecting a particular industry and it helps in evaluating various considerations that business has
to focus upon. The pestle analysis of chocolate industry is discussed below:
Political Factors: These are basically the factors which are related to the regulations and
interruptions of the government who are likely to affect the operations of an enterprise in
the indirect and direct manner. The trade, tariff and tax duties are considered to be the
most important factor which is likely to influence the decision making of the Dreamy
Chocolates.
Economic Factors: The supply models and changing demand are considered to be the
major factor which is related to the company operations and complying with the
expectations of the customer. In addition to that, the disposable income level and inflation
rates are considered to be the relevant economic factors in relation to the new venture of
the chocolate industry (Gauthier, Cohen and Meyer, 2019).
Social Factors: It basically relates to the demographic preferences and trends of the
customers which determine the various operations and decisions of the company in
various ways. The change in customer preferences and growing health consciousness are
4
chocolate industry to comply with the standards and changing preferences of the organisation.
Outlook for the future
Throughout the next five years from 2026-27, the revenue of the chocolate industry is
ascertained decline from an annual compound rate of 0.6% to £8.4 billion. The growing trend
among the individuals to consume healthy food is likely to influence the purchasing power of the
customers through putting pressure on the consumption of the sugary products. However, the less
certainty of the economic conditions which is due to expected recession in the current year
implies the ease on inflationary pressures. Moreover, it is forecasted that disposal incomes of the
customers will increase which would uplift their spending on purchase of the commodities of the
chocolate industry.
Pestle analysis
Pestle analysis is a framework to analyse the factors of external business environment
affecting a particular industry and it helps in evaluating various considerations that business has
to focus upon. The pestle analysis of chocolate industry is discussed below:
Political Factors: These are basically the factors which are related to the regulations and
interruptions of the government who are likely to affect the operations of an enterprise in
the indirect and direct manner. The trade, tariff and tax duties are considered to be the
most important factor which is likely to influence the decision making of the Dreamy
Chocolates.
Economic Factors: The supply models and changing demand are considered to be the
major factor which is related to the company operations and complying with the
expectations of the customer. In addition to that, the disposable income level and inflation
rates are considered to be the relevant economic factors in relation to the new venture of
the chocolate industry (Gauthier, Cohen and Meyer, 2019).
Social Factors: It basically relates to the demographic preferences and trends of the
customers which determine the various operations and decisions of the company in
various ways. The change in customer preferences and growing health consciousness are
4
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likely to increase their demand for the gluten free and sugar free produce or else results in
decreasing their consumptions of the sugar products.
Technological Factors: In context to these factors they are related to the technical
advancements and any changes in the prices and techniques is likely to impact the
production of the company. In context to Dreamy Delights, the technologies are required
for the purpose to customise and bake chocolates. Moreover, the enterprise will use the
digital technologies for marketing its commercial activities ( Sun and et.al, 2021).
Legal Factors: These are associated with the requirements and legal compliance of the
organisation in order to avoid any kind of uncertain situations. In context to Dreamy
Chocolates it has maintain strict adherence with the food and beverage standards of the
hygiene and health. In addition to that protecting the intellectual property rights is another
legal factor impacting the enterprise.
Environmental Factors: The processing of the chocolates will impact the surroundings
in different ways and in terms of carbon emissions and will promote the wastage of the
water and food as well. Thus the enterprise has to operate the activities in sustainable
manner for the purpose to avoid any kind of negative obligations from various
communities and general public for promoting harm to environment through their
operations ( Harrison and Clark, 2021).
USP and competitor analysis
Competitor analysis using porter's five forces
Porter five forces helps the organisation in evaluating the factors which are significant to
consider in order to know the position of the enterprise in the market and to devise strategies to
gain competitive edge. The five forces are explained below:
The threat of new entrants: This threat is low for in context to the Dreamy Chocolates
as the enterprise will use economies of scale to sustain its competitive position. Thus the
enterprise would not be affected to a great extent by the emergence of new businesses.
Competitive rivalry: This threat is high in context to the new venture as the market of
chocolates is full of potential rivals which would make it challenging for the enterprise to
match their level as they are well-established and sustaining in the market from years
(Inkon, K., 2019).
5
decreasing their consumptions of the sugar products.
Technological Factors: In context to these factors they are related to the technical
advancements and any changes in the prices and techniques is likely to impact the
production of the company. In context to Dreamy Delights, the technologies are required
for the purpose to customise and bake chocolates. Moreover, the enterprise will use the
digital technologies for marketing its commercial activities ( Sun and et.al, 2021).
Legal Factors: These are associated with the requirements and legal compliance of the
organisation in order to avoid any kind of uncertain situations. In context to Dreamy
Chocolates it has maintain strict adherence with the food and beverage standards of the
hygiene and health. In addition to that protecting the intellectual property rights is another
legal factor impacting the enterprise.
Environmental Factors: The processing of the chocolates will impact the surroundings
in different ways and in terms of carbon emissions and will promote the wastage of the
water and food as well. Thus the enterprise has to operate the activities in sustainable
manner for the purpose to avoid any kind of negative obligations from various
communities and general public for promoting harm to environment through their
operations ( Harrison and Clark, 2021).
USP and competitor analysis
Competitor analysis using porter's five forces
Porter five forces helps the organisation in evaluating the factors which are significant to
consider in order to know the position of the enterprise in the market and to devise strategies to
gain competitive edge. The five forces are explained below:
The threat of new entrants: This threat is low for in context to the Dreamy Chocolates
as the enterprise will use economies of scale to sustain its competitive position. Thus the
enterprise would not be affected to a great extent by the emergence of new businesses.
Competitive rivalry: This threat is high in context to the new venture as the market of
chocolates is full of potential rivals which would make it challenging for the enterprise to
match their level as they are well-established and sustaining in the market from years
(Inkon, K., 2019).
5
The threat of substitutes: This threat is high in context to the chocolates as there are
wide range of choices available to the customers due to high number of operators in the
industry. The high availability of substitutes induces customers to shift their preferences
and thus the enterprise has to devise constructive strategies to drive competitiveness.
Bargaining power of consumers: This threat is moderate as there are various
individuals of high level income groups who are price in-sensitive and are willing to
purchase high quality products at demanded prices. Although perception of consumers
varies according to their incomes and there are many individuals who make purchasing
decisions considering their affordability to consume certain products.
Bargaining power of suppliers: This threat is also moderate as the availability of
suppliers is high in relation with providing inputs of chocolate produce. Thus the wide
range of choices to source goods from enables the enterprise to negotiate prices. However
suppliers negotiate to charge high and thus the chocolates has to consider their offerings
through agreeing on their terms.
Competitors in the Chocolate Industry
There are various competitors when it comes to chocolate industry as there are huge
number of chocolate stores located across London which results in increasing the competition
level to a greater extent. Following are some of the competitors in context to the Dreamy
Chocolates:
Mars Wrigley Confectionery UK Ltd: It is one of the world’s leading manufacturer when it
comes to mints, chocolate, chewing gum and fruity confections. The organisation is quite
popular for providing a variety of products to the consumers.
Mondelez International: It is one of the American multinational confectionery and snack food
organisation offering a wide range of products to the consumers.
Nestle UK: It is one of the world largest beverage and food organisation. The organisation is
one of the leading UK based organisation offering wide range of confectionery and chocolates. It
6
wide range of choices available to the customers due to high number of operators in the
industry. The high availability of substitutes induces customers to shift their preferences
and thus the enterprise has to devise constructive strategies to drive competitiveness.
Bargaining power of consumers: This threat is moderate as there are various
individuals of high level income groups who are price in-sensitive and are willing to
purchase high quality products at demanded prices. Although perception of consumers
varies according to their incomes and there are many individuals who make purchasing
decisions considering their affordability to consume certain products.
Bargaining power of suppliers: This threat is also moderate as the availability of
suppliers is high in relation with providing inputs of chocolate produce. Thus the wide
range of choices to source goods from enables the enterprise to negotiate prices. However
suppliers negotiate to charge high and thus the chocolates has to consider their offerings
through agreeing on their terms.
Competitors in the Chocolate Industry
There are various competitors when it comes to chocolate industry as there are huge
number of chocolate stores located across London which results in increasing the competition
level to a greater extent. Following are some of the competitors in context to the Dreamy
Chocolates:
Mars Wrigley Confectionery UK Ltd: It is one of the world’s leading manufacturer when it
comes to mints, chocolate, chewing gum and fruity confections. The organisation is quite
popular for providing a variety of products to the consumers.
Mondelez International: It is one of the American multinational confectionery and snack food
organisation offering a wide range of products to the consumers.
Nestle UK: It is one of the world largest beverage and food organisation. The organisation is
one of the leading UK based organisation offering wide range of confectionery and chocolates. It
6
has attained a large customer base and its central location in the busy street has helped the firm in
gaining fame and popularity.
Unique value proposition
The unique value proposition of the Dreamy Chocolates will define its ability to induce
customer base through offering them unique value differentiated from its competitors. The USP
of the venture is discussed below:
Highly customer oriented brand: The new business venture of Dreamy Chocolates
would show extreme commitment towards providing consumers with maximum level of
satisfaction. The owner of the firm would pay emphasis on delivering individuals with
the quality and quantity they had demanded at best and affordable prices. The business
would be able to attract large base of consumers through offering them with high
customisation best suited to specifications of customers.
Attractive ambience and display of products: This organisation would be designed in a
aesthetic manner which would enable the organisation to induce large number of
customers. The chocolate business will also offer aesthetic packaging. The display of
customised orders would allow visiting customers to know about great services of the
company and thus it will helps in increasing orders and sales of the firm.
Reasonable prices: The pricing strategy of the firm would be designed considering the
expectations and maximum satisfaction of consumers. Dreamy Chocolates is committed
towards showing concern to their valuable consumers. Thus, it will provide great taste at
affordable prices in initial phase in order to attract more consumers and offering them
maximum utility. With economies of scale and sourcing raw material directly from the
wholesalers in bulk, the firm would be able to take advantage of low cost strategy.
Through providing goods at relatively lower prices, the company would be able to
increase familiarity of brand among consumers and increase sales. After raising
significant brand awareness, the firm will start increasing its prices based on the more
value added.
7
gaining fame and popularity.
Unique value proposition
The unique value proposition of the Dreamy Chocolates will define its ability to induce
customer base through offering them unique value differentiated from its competitors. The USP
of the venture is discussed below:
Highly customer oriented brand: The new business venture of Dreamy Chocolates
would show extreme commitment towards providing consumers with maximum level of
satisfaction. The owner of the firm would pay emphasis on delivering individuals with
the quality and quantity they had demanded at best and affordable prices. The business
would be able to attract large base of consumers through offering them with high
customisation best suited to specifications of customers.
Attractive ambience and display of products: This organisation would be designed in a
aesthetic manner which would enable the organisation to induce large number of
customers. The chocolate business will also offer aesthetic packaging. The display of
customised orders would allow visiting customers to know about great services of the
company and thus it will helps in increasing orders and sales of the firm.
Reasonable prices: The pricing strategy of the firm would be designed considering the
expectations and maximum satisfaction of consumers. Dreamy Chocolates is committed
towards showing concern to their valuable consumers. Thus, it will provide great taste at
affordable prices in initial phase in order to attract more consumers and offering them
maximum utility. With economies of scale and sourcing raw material directly from the
wholesalers in bulk, the firm would be able to take advantage of low cost strategy.
Through providing goods at relatively lower prices, the company would be able to
increase familiarity of brand among consumers and increase sales. After raising
significant brand awareness, the firm will start increasing its prices based on the more
value added.
7
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Operations plan
The operations plan of the organisation can be explained as the course of action that is
formulated by the enterprise for ensuring the smooth flow of transitions and activities throughout
the business. The operations of the business would be taking place in the company in various
departments that will be organised to perform different functions (Giri, 2018). The function
regarding the manufacturing and storing the produce will take place in the manufacturing
department that will include the overall processes and operations for crushing the Coco beans,
mixing it with raw chocolates and finally putting them in the chocolate frames to give final
shapes. The other department will be cooling where the chocolates would be cooled down and
extracted from the frames. The other operation will be packaging the chocolate with its unique
labelling and packaging that will give it a unique name and fame. The next department will focus
on delivering the chocolates to be sold to the wholesalers, retailers and final customers. The
company will focus on operations optimisation so that the extra chocolate can be reused in the
manufacturing process and wastage is minimised. The other step and operation within the
organisation that would be done by the research and development team is quality control and
researching new tastes and flavours for the chocolate manufacturing. The operations of the
organisation will focus on procuring the raw materials such as Cocoa beans, raw chocolate
abstract, sugars, etc. for manufacturing the handmade chocolates. Major operations of the
organisation includes the acquisition of raw materials, production and manufacturing process,
quality control, storage and warehousing, delivery and sales and final customer services.
Figure 1: Pre Processing, Production and Distribution Operations
Pre-processing operations
8
The operations plan of the organisation can be explained as the course of action that is
formulated by the enterprise for ensuring the smooth flow of transitions and activities throughout
the business. The operations of the business would be taking place in the company in various
departments that will be organised to perform different functions (Giri, 2018). The function
regarding the manufacturing and storing the produce will take place in the manufacturing
department that will include the overall processes and operations for crushing the Coco beans,
mixing it with raw chocolates and finally putting them in the chocolate frames to give final
shapes. The other department will be cooling where the chocolates would be cooled down and
extracted from the frames. The other operation will be packaging the chocolate with its unique
labelling and packaging that will give it a unique name and fame. The next department will focus
on delivering the chocolates to be sold to the wholesalers, retailers and final customers. The
company will focus on operations optimisation so that the extra chocolate can be reused in the
manufacturing process and wastage is minimised. The other step and operation within the
organisation that would be done by the research and development team is quality control and
researching new tastes and flavours for the chocolate manufacturing. The operations of the
organisation will focus on procuring the raw materials such as Cocoa beans, raw chocolate
abstract, sugars, etc. for manufacturing the handmade chocolates. Major operations of the
organisation includes the acquisition of raw materials, production and manufacturing process,
quality control, storage and warehousing, delivery and sales and final customer services.
Figure 1: Pre Processing, Production and Distribution Operations
Pre-processing operations
8
Acquisition of raw materials: This process is related with the procurement of raw materials that
are required for yielding the output and further continuation of the manufacturing and processing
operations. The raw materials within the Dreamy Chocolate Company would consist of acquiring
Choco chips, cocoa beans, dry fruits and nuts, etc. that would be sourced from the suppliers and
cultivators from places such as Ivory Coast, Nigeria or Ghana and across the globe. Dreamy
Chocolate will have an agreed dealership with the suppliers so that they stay loyal with the
organisation and smooth flow of production activities within the organisation can be obtained. It
will help to maintain a desired level of stock and inventory of raw materials for containing the
further operations within the organisation (Hoozée and et.al., 2020).
Processing operations
Manufacturing and packaging: The next operation within the organisation will be converting
the Cocoa beans into chocolate. This will be done through the manufacturing and packaging
process that will include the crushing of Cocoa beans, Choco chips, fruits and nuts and then
mixing them with the traditional flavours. These mixes will be pumped through the mechanical
systems and poured in the frames to give them a particular shape of the chocolate. In the end the
chocolate will be cooled down and packed by unique labelling and packaging for the product.
Distribution operations
Delivery and sales: The finished chocolates of the Dreamy Chocolates will be delivered to the
wholesalers and retailers for selling the chocolates into the market. It will develop a smooth
supply chain that will help it to place its products into the supermarket, retail stores, general
merchandise and grocery stores for selling their chocolates to everyone and gaining a larger
amount of market coverage (Rodríguez-Mantilla and et. al., 2019).
Risk and contingency plan
The Dreamy Chocolate could develop risk evaluation and contingency plans for the
organisation for tackling the uncertain conditions within the business for smooth flow of its
operations. The business plan is prepared after evaluating the risks involved and various safety
measures that are required to tackle the unwanted situations within the business (Ócsai, 2021).
The risk and contingency plan are helpful in preventing the loss of resources and life so that
9
are required for yielding the output and further continuation of the manufacturing and processing
operations. The raw materials within the Dreamy Chocolate Company would consist of acquiring
Choco chips, cocoa beans, dry fruits and nuts, etc. that would be sourced from the suppliers and
cultivators from places such as Ivory Coast, Nigeria or Ghana and across the globe. Dreamy
Chocolate will have an agreed dealership with the suppliers so that they stay loyal with the
organisation and smooth flow of production activities within the organisation can be obtained. It
will help to maintain a desired level of stock and inventory of raw materials for containing the
further operations within the organisation (Hoozée and et.al., 2020).
Processing operations
Manufacturing and packaging: The next operation within the organisation will be converting
the Cocoa beans into chocolate. This will be done through the manufacturing and packaging
process that will include the crushing of Cocoa beans, Choco chips, fruits and nuts and then
mixing them with the traditional flavours. These mixes will be pumped through the mechanical
systems and poured in the frames to give them a particular shape of the chocolate. In the end the
chocolate will be cooled down and packed by unique labelling and packaging for the product.
Distribution operations
Delivery and sales: The finished chocolates of the Dreamy Chocolates will be delivered to the
wholesalers and retailers for selling the chocolates into the market. It will develop a smooth
supply chain that will help it to place its products into the supermarket, retail stores, general
merchandise and grocery stores for selling their chocolates to everyone and gaining a larger
amount of market coverage (Rodríguez-Mantilla and et. al., 2019).
Risk and contingency plan
The Dreamy Chocolate could develop risk evaluation and contingency plans for the
organisation for tackling the uncertain conditions within the business for smooth flow of its
operations. The business plan is prepared after evaluating the risks involved and various safety
measures that are required to tackle the unwanted situations within the business (Ócsai, 2021).
The risk and contingency plan are helpful in preventing the loss of resources and life so that
9
proper continuation of the organisational activities can be performed. The contingency plans are
helpful for minimising the financial, operational and other risks related to the business activity.
The chocolate industry is very huge and it consists of many risks and threats that may lower
down the effectiveness and efficiency of the organisation.
Dreamy Chocolate Company must focus on achieving the success and growth by attracting
new customers and enjoying the growth and development of the company in effective ways. For
the business of handmade chocolates, many risks, challenges and threats are present within the
market such as competitors, diversified range of customers, changing customer taste and
preferences etc. In order to identify the risks the Porter's 5 forces model can be utilised which is a
framework for identifying the risks in a particular industry.
Availability of competitors/Rivals (High): There are many companies that are involved
in the production of chocolate and are highly competitive. Dreamy Chocolate Company
will face a high level of competition due to the presence of many chocolate brands within
the market across the UK. But the company is less likely to face any competition with its
custom handmade chocolates that would attract a high number of customers for the
company.
Substitutes in the market (Low): There are many chocolate companies within the
market but they are having different flavours and tastes for their products that make the
low availability of substitutes for the company's products (Jeje, Naidoo and Verma,
2021).
Threats of new entrants (Moderate): The chocolate industry has very few barriers to
the entry in the chocolate manufacturing business. This is because of the less restrictions
of government on the chocolate manufacturing industry as well as low barriers for new
entrants by existing companies.
Bargaining power of customers (Moderate): Customers are always focused towards
lowering down the cost of products but the Dreamy Chocolate Company provides their
products with reasonable costs that lower down the bargaining power of customers
(Masciocchi, 2020).
Bargaining power of suppliers (Low): There are many suppliers in the market that
makes it easier for the company to switch to other suppliers and reduce their overall
10
helpful for minimising the financial, operational and other risks related to the business activity.
The chocolate industry is very huge and it consists of many risks and threats that may lower
down the effectiveness and efficiency of the organisation.
Dreamy Chocolate Company must focus on achieving the success and growth by attracting
new customers and enjoying the growth and development of the company in effective ways. For
the business of handmade chocolates, many risks, challenges and threats are present within the
market such as competitors, diversified range of customers, changing customer taste and
preferences etc. In order to identify the risks the Porter's 5 forces model can be utilised which is a
framework for identifying the risks in a particular industry.
Availability of competitors/Rivals (High): There are many companies that are involved
in the production of chocolate and are highly competitive. Dreamy Chocolate Company
will face a high level of competition due to the presence of many chocolate brands within
the market across the UK. But the company is less likely to face any competition with its
custom handmade chocolates that would attract a high number of customers for the
company.
Substitutes in the market (Low): There are many chocolate companies within the
market but they are having different flavours and tastes for their products that make the
low availability of substitutes for the company's products (Jeje, Naidoo and Verma,
2021).
Threats of new entrants (Moderate): The chocolate industry has very few barriers to
the entry in the chocolate manufacturing business. This is because of the less restrictions
of government on the chocolate manufacturing industry as well as low barriers for new
entrants by existing companies.
Bargaining power of customers (Moderate): Customers are always focused towards
lowering down the cost of products but the Dreamy Chocolate Company provides their
products with reasonable costs that lower down the bargaining power of customers
(Masciocchi, 2020).
Bargaining power of suppliers (Low): There are many suppliers in the market that
makes it easier for the company to switch to other suppliers and reduce their overall
10
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operational costs. But the company tries to make good relations with their suppliers so
that the company can acquire raw materials at cheaper prices, thus increasing the profits.
Sales and marketing strategy
The sales and marketing function within an organisation is very important for interacting
their products in services with the customers so that maximum sales can be derived from their
activities. It is very important for the organisation to develop effective marketing, promotion and
sales strategies for increasing the awareness of the brand. The marketing strategy of Dreamy
Chocolate Company focuses on creating awareness among the customers about their delicacies
and highly furnished products. The sales and marketing strategy of the organisation is elaborated
below.
Social media marketing: The Dreamy Chocolate Company focuses on utilising social
media platforms for promoting their brand and increasing awareness among customers
regarding their products and services. With the help of social media accounts and higher
level of innovations the company focus is on attracting the attention of customers. The
social media marketing strategy is very competitive in today's digital world and it creates
very less costs for promoting as compared to the traditional methods of advertisement.
With the help of promoting contents and social media platforms the company tries to
interact with the customers and create additional sales. The company will promote its
products and services initially by paying an influencer for promoting their products and
services. The company will hire a social media manager for continuously upgrading their
products and services over social media for gaining a higher number of customers.
Referrals and word of mouth: The Company attempts to increase awareness among
their customers by using word of mouth. It is a very effective method in which the
customers of the organisation directly or indirectly become the promoters of the
company. The quality of the products and services will be designed in such a manner that
it attracts a maximum number of customers (Lasisi-Balogun, 2020). These customers rise
to share their experience about this chocolate with each other so that maximum number
of people could know about their products and services from each other. This technique is
very effective in promoting the Dreamy Chocolate Products because it is very effective in
promoting the new companies in the market.
11
that the company can acquire raw materials at cheaper prices, thus increasing the profits.
Sales and marketing strategy
The sales and marketing function within an organisation is very important for interacting
their products in services with the customers so that maximum sales can be derived from their
activities. It is very important for the organisation to develop effective marketing, promotion and
sales strategies for increasing the awareness of the brand. The marketing strategy of Dreamy
Chocolate Company focuses on creating awareness among the customers about their delicacies
and highly furnished products. The sales and marketing strategy of the organisation is elaborated
below.
Social media marketing: The Dreamy Chocolate Company focuses on utilising social
media platforms for promoting their brand and increasing awareness among customers
regarding their products and services. With the help of social media accounts and higher
level of innovations the company focus is on attracting the attention of customers. The
social media marketing strategy is very competitive in today's digital world and it creates
very less costs for promoting as compared to the traditional methods of advertisement.
With the help of promoting contents and social media platforms the company tries to
interact with the customers and create additional sales. The company will promote its
products and services initially by paying an influencer for promoting their products and
services. The company will hire a social media manager for continuously upgrading their
products and services over social media for gaining a higher number of customers.
Referrals and word of mouth: The Company attempts to increase awareness among
their customers by using word of mouth. It is a very effective method in which the
customers of the organisation directly or indirectly become the promoters of the
company. The quality of the products and services will be designed in such a manner that
it attracts a maximum number of customers (Lasisi-Balogun, 2020). These customers rise
to share their experience about this chocolate with each other so that maximum number
of people could know about their products and services from each other. This technique is
very effective in promoting the Dreamy Chocolate Products because it is very effective in
promoting the new companies in the market.
11
SEO and website marketing: The Dreamy Chocolates will also perform their marketing
activities by search engine optimisation so that maximum number of customer traffic can
be increased on their web page. The company will develop its own web page for creating
effective marketing activities and promoting their products and services online. By search
engine optimization and website marketing the organisation will be able to place various
products of the organisation over the internet so that the maximum number of customers
can know about them.
Finance and funding plans
The financial projection is a very important part while establishing a business and it helps
to turn the objectives, aims, mission, plans and visions of the organisation into reality. The
finance is the most crucial part for attaining the objectives of the organisation (Lin, 2019).
Without proper finance and funding the organisation will not be able to establish their business
or run it effectively and efficiently. The Dreamy Chocolate is focusing on starting their business
by the process of depth financing of £65,000. The breakdown of start-up costs is stated below:
Organisation build up and establishing the manufacturing unit - £40,000
Opening stock - £5,000
Working capital - £20,000
Budgeted cash flow statement
12
activities by search engine optimisation so that maximum number of customer traffic can
be increased on their web page. The company will develop its own web page for creating
effective marketing activities and promoting their products and services online. By search
engine optimization and website marketing the organisation will be able to place various
products of the organisation over the internet so that the maximum number of customers
can know about them.
Finance and funding plans
The financial projection is a very important part while establishing a business and it helps
to turn the objectives, aims, mission, plans and visions of the organisation into reality. The
finance is the most crucial part for attaining the objectives of the organisation (Lin, 2019).
Without proper finance and funding the organisation will not be able to establish their business
or run it effectively and efficiently. The Dreamy Chocolate is focusing on starting their business
by the process of depth financing of £65,000. The breakdown of start-up costs is stated below:
Organisation build up and establishing the manufacturing unit - £40,000
Opening stock - £5,000
Working capital - £20,000
Budgeted cash flow statement
12
Management Team
A Management Team is basically a group of high level associates which is basically hired
by the business owner for the purpose to carry out business functions and taking essential
responsibilities within the company. In reference to business plan, for starting up the handmade
chocolates with a team of three members who will help in carrying out business operations in the
organisation ( Xu, X., 2020).
In reference to the business plan, the business functions of the company will be carried
out by the owner and along with the support of other individuals will involve the staff who will
be involved in production of chocolates, a marketing manager and finance manager. It is very
important for every organisation to have a good management team which is single minded, fair
and driven. It is crucial for the management team to know how to make the vision and mission of
the owner a reality. It is significant for them to carry out effective strategies, strategic business
plans, understanding the reality of balancing the expectations and carrying out effective
strategies. In relation to the business plan, the structure of the management team which is also
known as operational team which is based on the division of team on the basis of functions. In
reference to the company, it is very important to have a effective management team that will help
13
A Management Team is basically a group of high level associates which is basically hired
by the business owner for the purpose to carry out business functions and taking essential
responsibilities within the company. In reference to business plan, for starting up the handmade
chocolates with a team of three members who will help in carrying out business operations in the
organisation ( Xu, X., 2020).
In reference to the business plan, the business functions of the company will be carried
out by the owner and along with the support of other individuals will involve the staff who will
be involved in production of chocolates, a marketing manager and finance manager. It is very
important for every organisation to have a good management team which is single minded, fair
and driven. It is crucial for the management team to know how to make the vision and mission of
the owner a reality. It is significant for them to carry out effective strategies, strategic business
plans, understanding the reality of balancing the expectations and carrying out effective
strategies. In relation to the business plan, the structure of the management team which is also
known as operational team which is based on the division of team on the basis of functions. In
reference to the company, it is very important to have a effective management team that will help
13
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in providing various advantages such as improving productivity, economic benefits and
contributing towards the overall business growth.
In relation to business plan, the management team is basically a section of the proposal that
supports in indicating the credential and expertise of the team of the managers and also plays an
important role in showing prospective investors that the professionals of the company are highly
trained and experienced for the purpose to fulfil the leadership positions. In addition to that, it is
very important to have team members who are dedicated in order to perform their functions in an
efficient and effective way and also contributing towards the overall success of the company.
CONCLUSION
It has been concluded from the above report that the business start-up requires many
strategies for achieving the success with a business plan. The report has been describing the
establishment of an organisation and its overall evaluation for understanding the criteria for
making it successful. It has been obtained from the above report that a new organisation can
obtain success by detailing its business plan, developing its product description, performing
competitor analysis, operational plans, risk analysis/evaluation, marketing strategy and finance
etc.
14
contributing towards the overall business growth.
In relation to business plan, the management team is basically a section of the proposal that
supports in indicating the credential and expertise of the team of the managers and also plays an
important role in showing prospective investors that the professionals of the company are highly
trained and experienced for the purpose to fulfil the leadership positions. In addition to that, it is
very important to have team members who are dedicated in order to perform their functions in an
efficient and effective way and also contributing towards the overall success of the company.
CONCLUSION
It has been concluded from the above report that the business start-up requires many
strategies for achieving the success with a business plan. The report has been describing the
establishment of an organisation and its overall evaluation for understanding the criteria for
making it successful. It has been obtained from the above report that a new organisation can
obtain success by detailing its business plan, developing its product description, performing
competitor analysis, operational plans, risk analysis/evaluation, marketing strategy and finance
etc.
14
REFERENCES
Books and Journals
Atanasiu, R., 2021. Decisions, Decisions, Decisions. In Critical Thinking for Managers (pp. 67-
91). Springer, Cham.
Bhattacharyya, S.S. and Fernandes, C., 2019. Carasid: Interventions that Make Businesses
Sustainable. Vision, 23(2), pp.208-214.
Chen, Y., Harncharnchai, A. and Saeheaw, T., 2022, January. Social Media Marketing Strategy
Framework of SMEs Using Customer Knowledge Management. In 2022 Joint
International Conference on Digital Arts, Media and Technology with ECTI Northern
Section Conference on Electrical, Electronics, Computer and Telecommunications
Engineering (ECTI DAMT & NCON) (pp. 69-74). IEEE.
de Vries, H.P., Veer, E. and de Vries, K.V., 2018. An examination of SME social media use in
the food industry. Small Enterprise Research, 25(3), pp.227-238.
Gauthier, J., Cohen, D. and Meyer, C.R., 2019. Top management team characteristics and social
value creation. Journal of Social Entrepreneurship, 10(2), pp.252-263.
Giri, A.V., 2018. Hurdles and Barriers in the Development of Bakery Business. Idea Publishing.
Hoozée, S. and et.al., 2020. Fitting responsibility center structures to strategy: Bakery Products
International. Journal of Accounting Education, 53, p.100692.
Jeje, K., Naidoo, V. and Verma, R., 2021. Enhanced Innovation Process as a Key Driver of
Bakery Performance. In Sustainable and Responsible Entrepreneurship and Key Drivers
of Performance (pp. 215-238). IGI Global.
Jukova, E.E. and et.al., 2019. Planning a new business: typical mistakes of a business plan in the
service sector. Journal of Environmental Management & Tourism, 10(3 (34)), pp.441-
447.
Lasisi-Balogun, O.S., 2020. Effect of Competitive Strategy on the Performance of Bakeries in
Ilorin Metropolis (Doctoral dissertation, Kwara State University (Nigeria)).
Lin, E., 2019. The Business of Bariatrics: Creating a Business Plan. Bariatric Surgical Practice
and Patient Care, 14(1), pp.1-2.
Liu, F., Jarrett, M. and Maitlis, S., 2021. Top management team constellations and their
implications for strategic decision making. The Leadership Quarterly, p.101510.
Masciocchi, B., 2020. How to make a business plan. In Studies in Surface Science and
Catalysis (Vol. 179, pp. 465-484). Elsevier.
Ócsai, A., 2021. Ecologically Conscious Business Organizations and Their Value Orientations.
In Ecologically Conscious Organizations (pp. 93-150). Palgrave Macmillan, Cham.
Prathap, S.K. and Sudheer, K.P., 2021. Model Business Plan. In Entrepreneurship Development
in Food Processing (pp. 347-362). CRC Press.
Rodríguez-Mantilla, J.M. and et. al., 2019. Comparative analysis between management team and
teachers on the impact of ISO 9001 standards in educational centres. International Journal
of Quality and Service Sciences.
Sebestyén, Z. and Tóth, T., 2018, December. Integrated Controlling Tool with Plan-fact
Analysis. In 2018 IEEE International Conference on Industrial Engineering and
Engineering Management (IEEM) (pp. 731-735). IEEE.
15
Books and Journals
Atanasiu, R., 2021. Decisions, Decisions, Decisions. In Critical Thinking for Managers (pp. 67-
91). Springer, Cham.
Bhattacharyya, S.S. and Fernandes, C., 2019. Carasid: Interventions that Make Businesses
Sustainable. Vision, 23(2), pp.208-214.
Chen, Y., Harncharnchai, A. and Saeheaw, T., 2022, January. Social Media Marketing Strategy
Framework of SMEs Using Customer Knowledge Management. In 2022 Joint
International Conference on Digital Arts, Media and Technology with ECTI Northern
Section Conference on Electrical, Electronics, Computer and Telecommunications
Engineering (ECTI DAMT & NCON) (pp. 69-74). IEEE.
de Vries, H.P., Veer, E. and de Vries, K.V., 2018. An examination of SME social media use in
the food industry. Small Enterprise Research, 25(3), pp.227-238.
Gauthier, J., Cohen, D. and Meyer, C.R., 2019. Top management team characteristics and social
value creation. Journal of Social Entrepreneurship, 10(2), pp.252-263.
Giri, A.V., 2018. Hurdles and Barriers in the Development of Bakery Business. Idea Publishing.
Hoozée, S. and et.al., 2020. Fitting responsibility center structures to strategy: Bakery Products
International. Journal of Accounting Education, 53, p.100692.
Jeje, K., Naidoo, V. and Verma, R., 2021. Enhanced Innovation Process as a Key Driver of
Bakery Performance. In Sustainable and Responsible Entrepreneurship and Key Drivers
of Performance (pp. 215-238). IGI Global.
Jukova, E.E. and et.al., 2019. Planning a new business: typical mistakes of a business plan in the
service sector. Journal of Environmental Management & Tourism, 10(3 (34)), pp.441-
447.
Lasisi-Balogun, O.S., 2020. Effect of Competitive Strategy on the Performance of Bakeries in
Ilorin Metropolis (Doctoral dissertation, Kwara State University (Nigeria)).
Lin, E., 2019. The Business of Bariatrics: Creating a Business Plan. Bariatric Surgical Practice
and Patient Care, 14(1), pp.1-2.
Liu, F., Jarrett, M. and Maitlis, S., 2021. Top management team constellations and their
implications for strategic decision making. The Leadership Quarterly, p.101510.
Masciocchi, B., 2020. How to make a business plan. In Studies in Surface Science and
Catalysis (Vol. 179, pp. 465-484). Elsevier.
Ócsai, A., 2021. Ecologically Conscious Business Organizations and Their Value Orientations.
In Ecologically Conscious Organizations (pp. 93-150). Palgrave Macmillan, Cham.
Prathap, S.K. and Sudheer, K.P., 2021. Model Business Plan. In Entrepreneurship Development
in Food Processing (pp. 347-362). CRC Press.
Rodríguez-Mantilla, J.M. and et. al., 2019. Comparative analysis between management team and
teachers on the impact of ISO 9001 standards in educational centres. International Journal
of Quality and Service Sciences.
Sebestyén, Z. and Tóth, T., 2018, December. Integrated Controlling Tool with Plan-fact
Analysis. In 2018 IEEE International Conference on Industrial Engineering and
Engineering Management (IEEM) (pp. 731-735). IEEE.
15
Shi, X. and et.al., 2019. Assessing the feasibility of marine oil spill contingency plans from an
information perspective. Safety Science, 112, pp.38-47.
Subiyakto, R., 2020. Reduction of Natural Disaster Risk Through Contingency Plan in Cilacap
District. Prizren Social Science Journal, 4(1), pp.35-41.
Tokdemir, O.B., Erol, H. and Dikmen, I., 2019. Delay risk assessment of repetitive construction
projects using line-of-balance scheduling and Monte Carlo simulation. Journal of
Construction Engineering and Management, 145(2), p.04018132.
Xu, X., 2020. Compose the Business Plan. In Introduction to Entrepreneurship (pp. 139-163).
Springer, Singapore.
Zulkornan, M.A. and et.al., 2021. Business Plan: Teruna Bakery Enterprise.
16
information perspective. Safety Science, 112, pp.38-47.
Subiyakto, R., 2020. Reduction of Natural Disaster Risk Through Contingency Plan in Cilacap
District. Prizren Social Science Journal, 4(1), pp.35-41.
Tokdemir, O.B., Erol, H. and Dikmen, I., 2019. Delay risk assessment of repetitive construction
projects using line-of-balance scheduling and Monte Carlo simulation. Journal of
Construction Engineering and Management, 145(2), p.04018132.
Xu, X., 2020. Compose the Business Plan. In Introduction to Entrepreneurship (pp. 139-163).
Springer, Singapore.
Zulkornan, M.A. and et.al., 2021. Business Plan: Teruna Bakery Enterprise.
16
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