Innovation and Entrepreneurship: Organo Grocery Store Business Plan

This document provides a comprehensive business plan for Organo Grocery Store, a new organic grocery store in the UK. It covers various aspects such as company overview, situational analysis, competitor analysis, STP, marketing mix, budget, and more. The plan focuses on innovation and entrepreneurship in the retail industry.

INNOVATION AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
COMPANY OVERVIEW...............................................................................................................1
SITUATIONAL ANALYSIS..........................................................................................................2
COMPETITOR ANALYSIS...........................................................................................................3
STP..................................................................................................................................................4
MARKEITNG MIX.........................................................................................................................5
BUDGET.........................................................................................................................................6
MONITORING AND REVIEWING..............................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
Innovation & Entrepreneurship are closely related words which are used in business
world. But these terms are different from each other and using them interchangeably will be a
mistake. Organo Grocery is business idea for organic grocery items and things. Motive of
Organo grocery has become more viral in current environment after outbreak of Covid-19.
Company has focused to get opportunity and to enter in competitive grocery market. The people
are becoming highly health conscious and due to this demand for organic grocery has increased
significantly. There is great opportunity for the company to enter in market and expand its
business.
INTRODUCTION
Innovation is application of creativity to come with unique solution or idea. It refers to
technological invention that lets processes do which could not be done previously.
Entrepreneurship on other is application of innovation to bring ideas in real life. It refers to the
social invention that lets people to do things which they could not do previously. The
entrepreneur’s grasps opportunities to cash in the innovation. They establish a business and
propel innovation forward. The progress depends over entrepreneurship and they could achieve
significant success through proper planning than actual innovators. Organo Grocery is planning
to open new organic grocery store in UK analysing the increasing demand for health conscious
food.
COMPANY OVERVIEW
Organo Grocery Store is new idea of entering into retail industry. Business is focused to
bring new organic grocery products and items in market to serve the population of UK. It aims at
conducting business on ethical terms. Due to the increasing health issues and new viruses deep
research was made to identify the root cause (Nambisan, Wright and Feldman, 2019). Results
found that people have left the healthy eating habits and also there is excessive use of chemicals
in food items that is harming health system of humans. Organo grocery provides healthy and
natural food products with no use of chemicals for production. Company does not make
compromise with health for quantity or prices. USP of company is to spread awareness about
healthy food items among the customers.
Mission
1

The objective is to adapt sustainable grocery items to provide healthy products with no use of
chemicals.
Vision
To become market leader in organic grocery market providing best quality items.
SMART objective
 To increase the number of consumer by 15% with assistance of organic product till June
2021.
 To capture the market share by 20 % within 1 year of time frame.
SITUATIONAL ANALYSIS
PESTLE Analysis Political – This factors relates to influence of change in government and its act,
regulations and related laws. Political environment of UK is stable and company will
only require compliance with the statutory regulations. Economic - It is large economy and is going through recession phase because of global
economic slowdown. Due to declining economy it may issues related to achieving sales
target.
 Social - People are becoming health conscious and this trend is getting hike constantly.
This will help the company to increase brand awareness and promotion over social media
will get the required market share. Hence, it will create a positive impact over working of
Organo Grocery Store.
 Technological- this is a factor which involves changes taking place in the technology
which is being used within the business. currently there are many different technologies
which is prevailing in retail sector like artificial intelligence, machine learning, robotics
and many others. When Organo Grocery Store will comply with all these technologies
then this will create a positive impact over working and profitability of company
(Lounsbury and et.al., 2019).
 Legal- this involves all the different rules, regulations and laws which a company need to
comply and adhere to. For this Organo Grocery Store need to comply with different types
of laws like employment act, contract act, health and safety, consumer protection and
many others.
2

 Environmental- this is also a major type of factor which need to be analysed and take care
by Organo Grocery Store. For this company will invest in protection of environment and
upliftment of society. this will create a positive impact over the consumers as they will
like the fact that company is taking care of society as well (Cunningham and et.al., 2019).
SWOT analysis
This is a tool which assist the company in analysing their personal strength and weakness and
make strategies in order to adapt opportunity and manage threat.
Strength
Main strength of company is that it has
diversified workforce which assist company in
developing better strategies
The financial strength of company is stable and
this is also a strength of company.
Weakness
The company has low global presence and
because of this market share of company is
low.
Lack of use of technology within the business
is also a weakness.
Opportunity
Enter in global environment and especially
focus on the emerging economies
Focusing on use of digital and social media
marketing to a great extent.
Threat
High competition is the major threat which
affects operations of company.
Frequent changes in the taste and preferences
of consumers is also a major threat which
affects working of company.
COMPETITOR ANALYSIS
Before coming up with the new business it is essential for the company to undertake an
analysis of competitors as well (Elert, Henrekson and Stenkula, 2017). This is necessary because
of the reason that when a company will compare its position with that of competitor then they
will come to know where they are lacking. With help of this Organo Grocery Store can make its
strategies.
Element Organo Grocery Store Greenlands health
food
Fresh organic
products
Product Company provides for
all the latest organic
products which
This company deals in
recent organic
products which a
Under this company
provides healthy and
organic product which
3

include food,
beverages and beauty
and skin care
products.
person requires. benefit the company
in managing its
consumer and their
requirement.
Price The company is using
penetration pricing as
it assists in capturing
large market share.
This company makes
use of competitive
pricing strategy as it
help them in
analysing their
competitors price and
then set their own
prices.
Price skimming
method is used in
order to attract high
income group and
then decrease price to
attract low income
group.
Promotion For promoting
product company
makes use of latest
methods like digital
marketing.
Company makes use
of combination of
digital and traditional
methods of promoting
a product or services.
Major preference is
given to sales
promotion and social
media marketing in
order to promote the
business.
STP
 Segmentation- this is referred to as the classifying of the consumer in different types of
groups on basis of some common characteristics. This is necessary so that company need
to focus on some specific consumer whose requirement meets the product and services
(Karlsson, Rickardsson and Wincent, 2019). For Organo Grocery Store major
segmentation is done on basis of demographic and psychographic market segments. The
reason underlying this selection is that both these segment are very common and this
involves the use of latest trend of healthy and organic products based on this
segmentation.
 Targeting- for a company to be successful the most essential thing for the company is that
they target a specific group of people from the segment chosen. Under Organo Grocery
Store major target selected for promotion of organic product is based on age (25- 55)
4

under demographic and lifestyle in psychographic (Coulson-Thomas, 2017). The reason
underlying this fact is that organic product is mostly liked by the younger mass of
population. Along with this people belonging to higher class also prefers consuming
healthy and organic food.
 Positioning- this is the most essential aspect of the STP approach. The reason behind this
fact is that when company position its product in mind of consumer in such a manner that
they remember it for a longer period of time (Ding, 2017). For effective positioning of
Organo Grocery Store major focus is being laid over quality of product. This is pertaining
to the fact that in current time major preference is being given on quality of product and
if it will not be good then consumer will not like it.
MARKEITNG MIX
 Product- it is the thing on which company is based and if product and services of business
are not in accordance with need and requirement of consumer then company will not be
successful. The product of Organo Grocery Store includes healthy and organic product,
food, beverages, skin and beauty care products (Zhu, Zhang and Ogbodo, 2017).
 Price- Price is the amount of money which consumer has to pay against the product and
services being used by them. For the launching of business, the use of penetration pricing
is being used. The reason underlying this fact is that with help of this pricing strategy
company will start with low price and capture large market. Hence, as the market will be
captured company will increase the price and attract other consumers as well.
 Place- this is defined as place through which product and services will be presented to
consumer for their consumption. For this Organo Grocery Store will provide facility of
both physical store and online option of buying the products.
 Promotion- it is the most essential aspect for success of the product and services being
sold by the company (7Ps of the marketing mix, 2019). in order to promote the product
and service Organo Grocery Store will make use of digital marketing techniques and
other latest methods.
 People- this element involves the people related with company and interested in better
working of company. Hence, this involves the employees, consumers, suppliers and other
stakeholders of the company.
5

 Process- for managing operations of company, they majorly focus on the customer
focused process. Under this process Organo Grocery Store lay more emphasise over the
need and preferences of consumers (Pisoni, 2019).
 Physical evidence- this refers to as the elements of physical evidence which assist
company in attracting consumers to a great extent. For Organo Grocery Store physical
evidence involves the social media post, environment of the supermarket and all other
related aspect with store.
BUDGET
Particulars
Janu
ary
Febr
uary
Mar
ch
Apr
il May
Jun
e July
Aug
ust
Septe
mber
Oct
ober
Nove
mber
Dece
mber
Cash
inflows
Opening
cash inflow 6000
7450
9
154
378
235
854.
9
318
970
403
754.
2
490
239.
1
578
456.
5
6684
39.1
760
220
8538
33
9493
12.2
Sales
revenue
9883
0
9981
8.3
101
814.
7
103
851
105
928
108
047
110
207.
5
112
411.
6
1146
60
116
953
1192
92
1216
78
Other
income 3250 3250
325
0
325
0
325
0
325
0
325
0
325
0 3250
325
0 3250 3250
Total cash
inflows
1080
80
1775
77.3
259
442.
7
342
955.
9
428
148
515
050.
8
603
696.
5
694
118.
1
7863
49
880
423.
1
9763
75.1
1074
240
Cash
outflows
Material
2547
0.5
1497
2.75
152
72.2
155
77.6
4
158
89.2
162
06.9
8
165
31.1
2
168
61.7
4
1719
8.98
175
42.9
6
1789
3.82
1825
1.69
Labor 2500 2500
250
0
250
0
250
0
250
0
250
0
250
0 2500
250
0 2500 2500
Other
expenses
2100.
5
2226
.53
231
6
240
8
250
5
260
5
270
8.91
4
281
7 2930
304
7 3169 3296
Administrat
ion
expenses 3500 3500
350
0
350
0
350
0
350
0
350
0
350
0 3500
350
0 3500 3500
Total cash 3357 2319 235 239 243 248 252 256 2612 265 2706 2754
6

outflows 1 9.28
87.7
9
85.8
6
93.7
4
11.7
1
40.0
3
79.0
1 8.94
90.1
2 2.86 7.5
Cash
deficit /
surplus or
closing
cash
balance
7450
9
1543
78
235
855
318
970
403
754
490
239
578
456.
5
668
439
7602
20
853
833
9493
12
1046
693
MONITORING AND REVIEWING
For success of the business the most essential thing for the company is effective
monitoring and controlling of the business plan. The reason pertaining to this fact is that when a
business is started then at that time there are many complications and steps which need to be
adhered (Mongelli and Rullani, 2017). Hence, for this effective monitoring and reviewing of the
plan is very important. For this Organo Grocery Store will make use of traditional method of
monitoring the business plan. This will involve the use of setting standards and then comparing
the actual work with standards being set. This method is helpful in analysing performance of
business as it helps in finding out deviation between the actual performance and the standard
performance required.
CONCLUSION
From the above business plan, it is concluded that for setting any type of business most
important thing is to set objectives as this provides direction to the people in which they have to
work. Furthermore, it was evaluated that in order to analyse situation use of PESTLE and SWOT
was helpful. Thereafter, it was evaluated that analysing competitors is very helpful in setting up a
price and promotional activities of business.
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REFERENCES
Books and Journals
Nambisan, S., Wright, M. and Feldman, M., 2019. The digital transformation of innovation and
entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), p.103773.
Lounsbury, M., and et.al., 2019. Culture, innovation and entrepreneurship. Innovation, 21(1),
pp.1-12.
Cunningham, J.A., and et.al., 2019. The impact of university focused technology transfer policies
on regional innovation and entrepreneurship. The Journal of Technology Transfer, 44(5),
pp.1451-1475.
Elert, N., Henrekson, M. and Stenkula, M., 2017. Institutional reform for innovation and
entrepreneurship: An agenda for Europe. Springer Nature.
Karlsson, C., Rickardsson, J. and Wincent, J., 2019. Diversity, innovation and entrepreneurship:
where are we and where should we go in future studies?. Small Business Economics, pp.1-
14.
Coulson-Thomas, C., 2017. Stimulating creativity, enabling innovation and supporting
entrepreneurship. Management Services, 2017(Summer), pp.26-29.
Ding, Y.Y., 2017. The constraints of innovation and entrepreneurship education for university
students. Journal of Interdisciplinary Mathematics, 20(6-7), pp.1431-1434.
Zhu, H.B., Zhang, K. and Ogbodo, U.S., 2017. Review on innovation and entrepreneurship
education in Chinese universities during 2010-2015. Eurasia Journal of Mathematics,
Science and Technology Education, 13(8), pp.5939-5948.
Pisoni, G., 2019. Strategies for pan-european implementation of blended learning for innovation
and entrepreneurship (i&e) education. Education Sciences, 9(2), p.124.
Mongelli, L. and Rullani, F., 2017. Inequality and marginalisation: social innovation, social
entrepreneurship and business model innovation: The common thread of the DRUID
Summer Conference 2015. Industry and Innovation, 24(5), pp.446-467.
Niccum, B.A., and et.al., 2017. Innovation and entrepreneurship programs in US medical
education: a landscape review and thematic analysis. Medical education online, 22(1),
p.1360722.
Lu, J.G., and et.al., 2017. “Going out” of the box: Close intercultural friendships and romantic
relationships spark creativity, workplace innovation, and entrepreneurship. Journal of
Applied Psychology, 102(7), p.1091.
Online
7Ps of the marketing mix. 2019. [Online] Available through: <
https://blog.hurree.co/blog/marketing-mix-7ps>
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