Agri Group Business Plan - Business Development and Agriculture

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The Agri Group Business Plan is a detailed report outlining the strategy for an Australian-based agricultural business focused on producing high-quality fruits and vegetables, including strawberries and various vegetables, as well as manure compost products. The plan covers a thorough analysis of the business environment, including political, economic, and social factors, and a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The business plan details strategic goals, including vision and mission statements, operational plans encompassing marketing, production, and resource management, and financial projections such as cash flow budgets, projected financial performance, and break-even analysis. It also includes implementation strategies, performance management metrics, and a communication strategy. The plan aims to offer nutritious and high-quality products while also offering high quality planting crops for the Australian nationwide.
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Agri Group Business Plan 1
AGRI GROUP BUSINESS PLAN
Author
Course
Professor
Intitution
City
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Agri Group Business Plan 2
Table of Contents
Executive Summary...................................................................................................................4
Introduction................................................................................................................................5
Business Environment................................................................................................................5
Political Factors......................................................................................................................5
Economic Aspect....................................................................................................................6
Social Factors.........................................................................................................................6
SWOT analysis of the business..................................................................................................6
Strengths.................................................................................................................................7
Weaknesses.............................................................................................................................7
Opportunities..........................................................................................................................7
Threats....................................................................................................................................8
Description of Business Proportion...........................................................................................8
Vision.....................................................................................................................................9
Mission...................................................................................................................................9
Operational Planning..................................................................................................................9
Product..............................................................................................................................10
Price..................................................................................................................................10
Promotion..........................................................................................................................10
Place..................................................................................................................................11
Production Plan........................................................................................................................11
Production strategy...........................................................................................................11
Production Cycle...............................................................................................................11
Land and infrastructure.....................................................................................................12
Equipment and machinery................................................................................................12
Supply chain and logistics................................................................................................12
Human resource plan............................................................................................................12
Financial Plan and Analysis.....................................................................................................13
Cash Flow Budget................................................................................................................13
Projected statement of financial performance for the next financial year............................13
Statement of financial positions...........................................................................................14
Break-Even Analysis............................................................................................................15
Performance Management.......................................................................................................15
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Agri Group Business Plan 3
Performance measures..........................................................................................................16
Implementation Strategies and Review....................................................................................16
Communication strategy for presenting the business plan...................................................16
Conclusion and Summary........................................................................................................17
REFERENCES.........................................................................................................................18
APPENDIX..............................................................................................................................19
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Agri Group Business Plan 4
Executive Summary
This plan is aimed at providing a brief overview of an agricultural fruit business, its business
environment, its financial needs and so forth. Agri Group is generally a mixture of uppermost
quality, cutting edge as well as effective food production and technology. The business is
closely committed to enhancement of the food dietary value and taste. Therefore, Agri Group
is formed to create widespread selection of horticultural and biological education, research
and experience of its initiators. It is an Australian-based entity, whose vision and main
objective is to offer flavorful, high quality and nutritious vegetables as well as strawberries
for consumption. Further, it would offer high quality planting crops for the Australian
nationwide.
The idea behind Agri Group is to offer delicious and healthy fruits and vegetables to general
public. Additionally, to fruits and vegetables, Agri Group plans to produces as well as market
manure compost products.
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Agri Group Business Plan 5
Introduction
Agri Group is the merger and buyout of two fruitful plant farming locations in the region.
The notion over this commerce is to offer delicious and healthy fruits and vegetables to
general community. In this case, the paper would cover business environment analysis; that
is, industry analysis and external environment analysis. It would also cover SWOT analysis
of the business as well as describe the business proportion. It also covers strategic business
goals; that is, the business vision and mission. Further, the paper covers production plan, the
performance management, financial plans, the legal obligations as well as risk management,
and implementation strategies.
Business Environment
Australia is the premier farming regions in the world. This generates extremely modest
setting with significant great number of organizations taking part in the sector (Binks,
Stenekes, Kruger & Kancans 2018). As almost all produces are deliberated as merchandises
and huge purchasers are a bit amalgamated than agriculturalists, entire margin are minimal
and contentions for the wholesalers’ deals are relatively robust. Over the last few years,
market for the organic nutrition products has increased by approximate 20% and each year
around 40% of the Australian clients irregularly grasp for products branded organic
(Bruinsma, 2017). Therefore, the sales for the organic food products are projected to increase
over the years (Accountants & McCluskey 2016). The deals by growers have improved by
around 79% since 1990s to around 3,400 markets in different states across the continent.
Around 4 million Australian obtain their nutrition products straight from growers (Raman
2017). This makes outstanding atmosphere for the sector contributors like Agri Group that is
now eager or keen to contest in the niche fair and to advertise with fresh products.
Political Factors
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Agri Group Business Plan 6
Political aspect plays a significant part in determining aspects that could affect agricultural
business’s profitability in Australia. Agri Group is operating in fruits and vegetables in
Australia and therefore exposes itself into different forms of political environment (Walcott,
Zuo, Loch & Smart 2014). For instance, there is political instability in the country which
might impact on the business profitability. Further, taxations in the country for new business
are relatively high making it difficult for the business to generate substantial profit (Kruger
2017). The government subsidy on the agricultural loans could boost the company since it
makes it easier to access relevant funds to run the business.
Economic Aspect
Some of the economic factors that might impact on Agri Group operations include, credit
extended by the commercial banks, local rural banks as well as national land development
financial institutions. This makes it easier for the business to access finances for running its
operations (Carberry, Bruce, Walcott & Keating 2011).
Social Factors
According to various studies, society’s culture greatly influences culture of any entity. The
shared outlooks and views of general population play a significant part on how marketers of
our business would understand the clients of a specific market as well as how they design
marketing message for the agricultural industry consumers (Raman 2017).
SWOT analysis of the business
We are generally in extremely profitable or rewarding market place given the speedily
increasing economy. Therefore, we predict the business powers as capacity to answer swiftly
to that business market commands and to offer excellence administration we tend to be a
renowned and valued firm (Ash et al 2017). Our chief employees have thorough and wide
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Agri Group Business Plan 7
acquaintance of native production market and know-how that would go in the direction of
probing agriculture market. Nonetheless, we admit some of the weaknesses of the medium-
size firm deprived of significant knowledge and threat of fresh rivalry that purpose to meet
some of our slot. Below are some of the strengths, the weaknesses, the opportunities as well
as threats associated with our business operations.
Strengths
Some of the strengths associated with our business include:
Strategic market segmentation as well as implementation strategies
Mixture of the abilities in director's post. Executives tend to mutually cultivate and
implement business strategic and the long-run policies, taking broad capability in
business and product expertise.
A focused and hostile marketing promotion with some vibrant strategies and goals.
Finally, maintenance as well as formation of a robust wealth base
Weaknesses
Some of the weaknesses related with our business are as follows:
Introduction of fresh organizational practices as well as employees who have never
worked together presenting challenges to this business.
Absence of a straightforward networks for delivery
Imperfect financial base in comparison to chief actors within the sector.
Formation on internet would create some technical hitches
Opportunities
Some of the opportunities associated with our business are as follows:
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Agri Group Business Plan 8
Particular niche: The gratefulness for relatively high-quality vegetables and fruits
Current drive by the government as well as specialized institutions towards exports of
the locally produced products.
Snowballing number of the foreign companies
Threats
The current development within the market might result in market fullness, via rivalry
(Raman 2017). Such rivalry could emerge from various sources including: new marketing
campaigns and plans by well-known businesses and crops. The second one is well-known
mass-market organizations’ growth of the fresh lines and precipitously integration to be fully
in regulation of the crops being sold and supplies in particular markets. Further, there is the
existing competition.
Description of Business Proportion
The target client for this business entails vegetable processors, oriental vegetable
markets that demand semi-organic and organic green vegetables as well as private buyers via
farmers and direct selling markets. It would continue servicing current clients of purchased
vegetable farms. Furthermore, in its green productions, Agri Group would target all chief
food outlets. It plans to make apply Internet as the chief marketing networks to reach new
customers in future. Its target clients would be as shown below:
Vegetables:
Vegetable processors
Oriental vegetable market
People approaching farm as well as
Roadside farmers’ and stands’ markets
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Agri Group Business Plan 9
Bagged Manure:
Private clients approaching the facility
Garden and Nursery centers
Bulk client
It will also take over client from past owners of vegetable facilities.
Strategic Business Goals
Vision
Agri Group would revolve about needs to offer quality fruit and vegetables to our numerous
target clients, in process to fully satisfy their wants. This would be commenced via execution
of relatively high-class regulation tactics and technical innovation and enrollment of expert
sales and manufacture group and production of appropriate excellence marketing resources to
supply numerous forms of consumers. The business will site itself as excellence producer that
struggles to offer reliability, enjoyment, fulfillment and suitable image.
Mission
Agri Group mission is to be one of the leading agricultural products provider. This would be
achieved by offering excellence plants at relatively reasonable prices whereas beyond our
clients’ prospects. Furthermore, Agri Group mission is to offer flavorful, nutritional and high
quality strawberries and vegetables for consumption. It also aims to offer high quality
planting products for Australian nationwide. Generally, our mission is mostly to wisely show
up different details in health of its vegetables and fruits and upholding superb quality at
different levels of manufacture.
Operational Planning
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Agri Group Business Plan 10
Our marketing plan would be generally on the basis of creating visibility and awareness of
vegetables and strawberries and their capacity to yield uppermost proportions of the
agricultural products. This plan would depend on numerous diverse customs of
communication channels. The chief form is taking part in various trade shows. These trade
shows work as wonderful places for people to network and learn about fresh developments
within the sector. Secondly, there is application of advertisement as another form of
communication. The chief venues for such advertisement would be sectorial trade magazines.
Product
Agri Group plants to generally focus on the vegetables as one of its chief products. This
encompasses increasing leeks, summer squash, carrots, spinach, red onions, winter squash,
winter greens, pumpkins and globe beets. It would apply hostile promotion tactics to
supplementary market all its produces. Such tactics, encompasses advertising of the produces
over supporting of the spots on the cooking exhibitions and shows as well as engaging
prominent chefs to assists in promotion the fledgling sector (Ferrell & Hartline 2012).
Price
Agri Group mostly set it prices on the basis of market rates. Its pricing for the strawberries
would surpass normal market price since taste sampling at the outlet would be fortified,
advancement of the pesticide-free, ozone, health-friendly production approaches and
fumigant-free approach of soil as well as unparalleled flavor superiority would addict the
green tasters (Berthon, Pitt Plangger & Shapiro 2012).
Promotion
At Agri Group, sales is mostly similar for the composing products, as both products would
mostly sell through the wholesale market. It bagged manure would be delivered as well as
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Agri Group Business Plan 11
unloaded in some sizable wholesale quantities. Our promotion would be based mostly on
notifying probable clients of our presence and creating accurate info readily obtainable to
some of our target clients (Berthon et al 2012). As the business will target different market
segments, promotional tools as well as messages might differ slightly to match intended
market. Nonetheless, the promotion would carry sense of health, excellence and brilliance in
all images, all publications and all promotions.
Place
In an outlook of the notion that the business is getting into a market significantly controlled
by agricultural companies which has estimated market of around 95%, the business tend to
assume widespread advertisement of its products along with its brand designation. This is
aimed at instilling knowledge and awareness of its existence within the fair that expectantly
shall translate into the market share (Baker 2014). Therefore, there is the requisite to make
sure that the produces are continuously obtainable to the target fair and that they are generally
of constant high quality.
Production Plan
Production strategy
We estimate to produce around 47,500 units in year one and around 60000 units in year two.
These are expected to cost around 301,000 to produce in the first year and 388,100 in second
year.
Production Cycle
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Agri Group Business Plan 12
We hope that production of vegetables and fruits shall be an all year round business and thus,
production would have two different production cycles to have no interruption in all year. All
acres would be cultivated in all year round.
Land and infrastructure
The farm will include 30 acres, 2 acres include high tunnels, 11 acres in the crop production,
7 acres in conservation, 3 acres in residence and 7 acres in the pastures.
Equipment and machinery
We have around 50 horsepower tractors which are applied for tilling, mowing and working
around our farm. Attachment to our tractors includes the tiller, loader, mower and spray
equipment. We own air blast sprayer as well as irrigation equipment. As our farm expands
the business look forward to purchasing delivery van, packing line for greens and walk in the
materials and supplies refrigerator box.
Supply chain and logistics
We presently have 300 pick-up which are applied for farm work, deliveries as well as farmers
markets. In future, we plan to purchase 200 delivery vehicles.
Human resource plan
Overall, Agri Group would have 5 personnel. It is expected to hire at least five temporary
staff during equipment re-alignment level, 4 staff on stable basis as well as 3 staff as part-
time workers. The management would be responsible for taking part in daily operation and
supervision of this business. This comprises of;
James, the business manager
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