Feasibility Study of Plant-Based Meat Manufacturing Company Eco Harvest

Entrepreneurship
and Business
Development

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Feasibility study of the new venture.......................................................................................1
Relationship between innovation and entrepreneurship.........................................................2
Competitive and STP analysis................................................................................................3
Discussion on proposed business model................................................................................5
Different marketing strategies to be used during phases of industry life cycle......................7
Quantitative and qualitative tools for risk mitigation.............................................................7
Common Mistakes made by first time entrepreneurs.............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Developing a new venture is risky and complicated endeavour as it involves facing
uncertainties and determining various aspects of the enterprise (Audretsch, Belitski and
Korosteleva, 2021). The new venture developed for this report is plant based meat manufacturing
company Eco Harvest. The feasibility of the concerned venture is determined in this report along
with description of relationship between innovation and entrepreneurship. Competitive analysis,
STP analysis and business model canvas is applied to new venture in order to explain the
enterprise and determine its feasibility. Marketing strategies to be used in different phases of the
industry life cycle and planning tools which support risk mitigation are included in this report.
Besides this, the common mistakes made by first time entrepreneurs is included in this report.
MAIN BODY
Feasibility study of the new venture
The new venture concept of this report is to open a plant based meat manufacturing
company. The company will sell plant based meat which acts as an eco-friendly substitute
product for different type of meat products. . The eco-friendly meat products offered by Eco
Harvest will be similar in taste, texture and smell to original meat. In this way, the company will
provide consumers a sustainable option for consuming meat products. This is a feasible business
concept because the industry for analogue meat and substitute meat products in UK has high
growth potential.
Statistical data shows that UK consumers are becoming more acceptable of vegan and meat free
foods. The number of consumers in UK who eat meat free food increased significantly with 50%
in 2017 to 65% in 2019. There is high profitability in selling meat free food products as the sale
of such products was also positively affected from 2014 to 2019. It increased by 40% from £582
million in 2014 to £816 million in the year 2019. Apart from this, by the year 2024 the sale of
meat free food products will reach the highest number £1.1 billion (PLANT-BASED PUSH: UK
SALES OF MEAT-FREE FOODS SHOOT UP 40% BETWEEN 2014-19, 2020).
This statistical data showcases that UK consumers are looking to become more
sustainable and choosing eco-friendly products in their diet. The high feasibility of the Eco
Harvest enterprise can be understood from these significant rise sustainable food preferences
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from British consumers. This is because Eco Harvest will provide a sustainable option for British
consumers who are looking to decrease their carbon footprint in choices.
Apart from the rise in consumption of meat free food in UK, the statistical data for plant
based meat industry also provides positive outlook of the industry. The plant based meat market
is expected to reach value of £6.2 billion by the year 2025 with a CAGR of 14.0% (Plant-based
Meat Market by Source (Soy, Wheat, Pea, & Other Sources), Product (Burger Patties, Strips &
Nuggets, Sausages, Meatballs, & Other Products), Type (Beef, Chicken, Pork, Fish, & Other
Types), Process, and Region - Global Forecast to 2025, 2021). This rise can be attributed to rise
in climate concerns and increasing awareness about health benefits offered by plant based meat
over meat produces. This further showcases the high feasibility of Eco-Harvest. This is because
by quickly entering and establishing brand name in the UK, plant based meat industry can help
the respective company gain opportunity for international growth and high profitability.
The statistical data on dithery preferences of UK based consumers also showcases high
demand for plant based meat products. Currently 7.2 million adult consumers in Britain take diet
free of meat products and this is expected to reach 13 million by the end of 2021. In addition to
this, 27% of British Households have replaced meat food items with vegan or vegetarian
alternatives at least once a week (Plant based meat: an industry full of potential, 2021). The
innovative plant based meat substitutes offered by Eco Harvest for different types of meat
products will provide the firm competitive edge and help the company make high profits.
Relationship between innovation and entrepreneurship
Entrepreneurship is defined as the process of building a new enterprise with the aim to gain
profitability of the company and bearing any risks associated with the endeavour. Innovation on
the other hand is defined as the action of individual or entity creating new ideas such as new
products services or processes. These two concepts are related because entrepreneurship involves
identifying commercial opportunities in new novation and taking entrepreneurial risk to make the
innovation commercial success. Successful entrepreneurs have high appetite for risk and are able
to use take risk in introducing new innovation in the corporate world.
In addition to this, long-term entrepreneurship is dependent on innovation to face external
environmental changes and survive in the industry for a long time period. This includes brining
innovation in products, services or business processes (Cheng, Tani and Wang, 2021). In case of
the proposed entrepreneurial venture Eco Harvest, the innovation is to offer sustainable products
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