Strategic Financial Project
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Added on 2019-09-23
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The study focuses on the current business performance of a UK based FNS company named RaisinAble Limited. Alternative strategies required for developing the business of RaisinAble are identified, explored, and evaluated followed by research on the relevant market, ‘real world’ industry, along with its external and internal business environment. A five-year business plan is been set out for enhancing shareholder value with a justified definition of the concept of shareholders value. The study ends with a brief review of the proposed business plan followed by an overall conclusion.
Strategic Financial Project
Added on 2019-09-23
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Running Head: Strategic Financial ProjectSTRATEGIC FINANCIAL PROJECT
Strategic Financial Project 2Table of ContentsSection 1..........................................................................................................................................3Introduction......................................................................................................................................3a) Identification, exploration and evaluation of the alternative strategies required for developingthe business of RaisinAble...............................................................................................................3b) Research and findings.................................................................................................................5Research on “real world” industry...............................................................................................5Market research............................................................................................................................6External and internal business environment................................................................................6c) Shareholder value and five-year business plan..........................................................................10d) Identification of KPIs (Key performance indicators in relation to RaisinAble Limited...........13e) Review of the proposed business plan along with identification and assessment of risksinherent to the plan........................................................................................................................15Conclusion.....................................................................................................................................17Reference List:...............................................................................................................................19Section 2: Reflective Journal.........................................................................................................22Description.................................................................................................................................22Feelings......................................................................................................................................22Evaluation..................................................................................................................................23Analysis......................................................................................................................................23Conclusion.................................................................................................................................24Action plan.................................................................................................................................24Reference List:...............................................................................................................................25
Strategic Financial Project 3Section 1IntroductionThe current study is conducted for focusing on the current business performance of a UK based FNS (fruits, nuts, and seeds) company named RaisinAble Limited. The company operates its regular business activities by sourcing, packaging, processing, marketing, and selling dried fruits, seeds, and edible nuts to the retail market of UK. A five-year business plan is been draftedfor RaisinAble Limited to let it inform about its strategic business future. For the purpose of preparing business plan for the company, alternative strategies as required to develop the company are been identified, explored, and evaluated followed by a research on the relevant market, ‘real world’ industry, along with its external and internal business environment where RaisinAble Limited currently situated in. A five-year business plan is been set out for enhancing shareholder value with a justified definition of the concept of shareholders value. A set of recommendations are also been made alongside the five-year business plan followed by an identification of the specific KPIs (key performance indicators) for assisting in the process of measuring the extent upto which shareholder value is required to be enhanced. The entire study is been ended with a brief review of the proposed business plan followed by an overall conclusion. a) Identification, exploration and evaluation of the alternative strategies required for developing the business of RaisinAbleBusiness development refers to a set of activities and processes those are concerned with preparing a business to grab probable growth and developmental opportunities by supporting the implementation strategies associated with growth opportunities. Business developments strategies are long-term in nature and through this, business organisations use to create a positiveimage about its business operation in the minds of its stakeholders, customers, market and others.Theprocedure of developing business is about identifying the interconnected networks those could create new path or opportunities for business to experience growth (Morecroft, 2015).
Strategic Financial Project 4The alternative business developmental strategies required to be undertaken by RaisinAble Limited for ensuring its business development are as follows –Expansion of distribution channel: RaisinAble uses to sale its products mostly through supermarkets but for developing business, the company needs to expand its disribiution channel by opening franchises stores. From these franchises the company will become able to sell its own branded of healthy snacks, and baking products.Concentration on increasing the sales volume of own brand: For sustaining business operation for long-run and with increasing profitability RaisinAble Limited needs to concentrate on selling its own branded healthy snacks and baking products. With this, thecompany will be able to depend on supermarkets to sell out their products (Morden, 2016). Implementing differentiation in existing product line: The existing product line is required to be expanded and differentiated by adding more items to it. Some more varietyof nuts and dried fruits are required to be included by RaisinAble to its existing product range which will be helpful for the company to expand its present customer base.Conducting marketing and promotional activities: The company needs to invest more fund in marketing and promotional activities to make the customers of the UK aware of the products it delivers. RaisinAble needs to conduct personal selling, direct marketing, and advertisements to promote and enhance its brand image which is highly significant for staying profitably in the market for long-run (Horkoff et al. 2014). Concentration on producing fruits and seeds by own: RaisinAble uses to export its products from the fruits growers around the world which includes USA, Greece, Turkey, Iran, France, India, Spain, and China. The company, to develop its strategic business in future is required to harvest some of the most popular selling items by its own which will be helpful for the company to reduce transportation cost and will increase profitability. This will also help the company to reduce its dependency on the fruits growers residing in aboard countries (Wheelen et al. 2017). Increasing the sales volume of healthy snacks: The company needs to increase its sales volume associated with healthy snacks and ingredients which it uses to supply hotels, food manufacturers, and restaurants around the UK.
Strategic Financial Project 5Providing optimum satisfaction to the clients: RaisinAble Limited must concentrate on providing optimum products satisfaction to its customers. For this reason, the company isrequired to include some healthy and diet snacks in its existing products line and they must concentrate on resolving queries of customers regarding its products. Market expansion: RaisinAble is having a good relationship with its bank and the company is recommended to borrow a lump sum amount from bank to invest it in expanding business in international market like USA, India, China, France and more. This expansion will help it to capture customer attention from global arena as well as the climate of these countries will be helpful for the company to harvest fruits, nuts, and seeds by its own. Implementation of online selling mode: In the present business world, online selling mode become intensively popular and RaisinAble is required to implement online selling system to reach more number of customers in a one go. This will attract customers those who are not able to go to supermarkets due to some inconveniences (Alvarez, Taylor & Rauseo, 2015). b) Research and findingsResearch on “real world” industryThe present snacking culture of United Kingdom is pervasive where it is reported that 96% of UK people use to eat snack between meals and this is the daily habit of 69% of those people. The habits of taking healthy snacks between meals keep energy levels up and this habit isplaced in a legitimate place in daily diet (Forbes, Kahiya & Balderstone, 2016). In the busy lifestyle of UK people, they started concentrating on healthy snacking and it becomes a necessityfor them. Fresh fruit, nuts, chocolates, and seeds continuing to share its position as a pole amongst the UK people’s snack choices. This snacking preference of people reveals the way healthy snacks started to mingle with most of the people’s daily diet and menus by catering different needs, occasions, and moods (store.mintel.com, 2018). In reflection of this and despite the scrutiny of Public Health England on snacks, it is revealed that just 39% of the snackers use
Strategic Financial Project 6to look for healthy snacking options for most or all of the time. Due to the growing preference of UK people of placing healthy snacks in their daily diet, there is a great opportunity for the healthy snack selling company to flourish. RaisinAble is operating its snacking business by processing, and selling healthy snacks such as dried fruits, nuts, and seeds which creates a huge opportunity for the company to stay in the UK snack market for long-run. Market researchIn the UK market, RaisinAble Limited is a renowned name and at present, it becomes a market leader with the facilities it uses to provide in terms of processing, packaging, and distribution centered in the city of Bedfordshire. In the present UK market, the company is best known for its RaisinAble branded dried fruits whereas 80% of its revenue comes from retail sales comes from the major UK supermarket chains those who use to sell the products by labeling those by their own brand. The selling activities of RaisinAble through supermarket is based on renewable 3 year “call off“ contracts where the company needs to win by a competitivetender, quality products, reliability in terms of supply and product price. The company has specialised itself in two different sectors of retail market such as Healthy Snacking, and Home Baking. Besides this, the company is also operates as bulk FNS (fruits, nuts, and seed) ingredientsuppliers to the UK based catering and food producing markets at a lower profit margins. It becomes a leader in the UK healthy snacking market due to its act of fulfilling the increasing demand for branded and healthy snacking products of the UK health sector. The market concentrated with home baking products is partly driven by television program titled “The Great British Bake Off” which has emerged the tendency of home baking in the UK people. This homebaking tendency of UK people accelerated the baking products selling activities of RaisinAble. External and internal business environmentPESTLE AnalysisPolitical (P)
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