Detailed Business Plan Report for Annie Foods Company

This report details the business plan for Annie Foods, a food service company launched in response to the COVID-19 pandemic. It explores the company's operations, including its focus on home-cooked meals and delivery services, and analyzes its location in Edinburgh. The report includes an in-depth industry analysis using the PESTEL framework, evaluating political, economic, social, technological, environmental, and legal factors. It also provides a product description, competitor analysis using Porter's Five Forces, and outlines the company's operational, sales, marketing, and financial strategies. The report concludes with a discussion of the management team and a risk and contingency plan, offering a comprehensive overview of Annie Foods' business model and prospects.

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Entrepreneurship

Executive summary
This pandemic has changed lives of many people regarding their business and jobs.
Entrepreneurship is the process of starting an enterprise from the scratch. The people who lost
their job amidst Covid - 19 have started their own business from the little amount of saving they
had. This report explains the business plan of one company which is started recently.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Business details ...........................................................................................................................4
Location.......................................................................................................................................5
Industry analysis..........................................................................................................................5
Product description......................................................................................................................7
Competitor analysis.....................................................................................................................7
Operation plan..............................................................................................................................8
Risk and contingency plan...........................................................................................................8
Sales and marketing strategy.......................................................................................................9
Finance and funding strategy.....................................................................................................10
Management Team.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals....................................................................................................................12

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·INTRODUCTION
Entrepreneurship is the ability to develop, form and run a business enterprise. There is a
consideration of uncertainty coming in the way of entrepreneurship to help gaining a profit.It is
connected to land, labour and resources along with the capital to start an enterprise which will
generate a profit. The Covid – 19 pandemic has impacted the lives of people from all over the
world. It has influenced the business of people resulting in the loss of job (Anderson,
Wennberg, and McMullen, 2019). This high level of unemployment lead people to start their
own enterprise and become their own boss. Food industry is one such same industry which has
grown a lot over the duration of pandemic and the restriction coming with it. The materials and
resources are easily available in the market as well as the customers are always looking to try the
food from a different place. The company Annie foods place is new the market and this report
deals with the business idea behind this company.
l壱
l弐Business details
All the businesses have been affected by the pandemic in one way or another. During these
tough times, the business development kept working by finding new ways among the restrictions
and adapting to new normal within the country. Annie food place is an example of a business
started amid Covid – 19. This company works in the food industry and specialises in home
cooked meals along with having a food delivery services (Wadhwani, and et.al., 2020). Annie
foods offers both online and offline services to its customers to make them order according to
their preferences. It also offers food products such as a British meal kits, diet combos, and a
wide range of products. Due to the effects of pandemic people are not ready to dine outside in
some restaurant and café. Annie foods has used this opportunity and added the delivery option in
the services they provide. It helps in reaching out to the customers who are busy with their work
from home and have no time to cook. This services helps the people stuck in restricted areas to
enjoy the food they are craving for.

l壱Location
In order to make the food business successful, the company must operate in an area with large
number of population and target audience. Some of the best places in UK where the food
business of Annie foods will grow are London, North of London and Edinburg. Annie foods run
in the streets and areas of Edinburg. The population in Edinburg comes within the audience
which the company is trying to target. Moreover, Edinburg has easy and reasonable access to the
materials and supplies required for the business. Working in the location where the food services
are famous will attract the customers by the market reputation. This is an effective way of
gaining the attention of customers (Olanrewaju, and et.al., 2020). Another way where the
customers can access to the company’s services are through online modes. This pandemic has
made the use of internet and online platforms increase a lot. Most of the customers plan to order
from online services rather than coming out of their house and exposing into the effects of
Covid.
l壱Industry analysis
Pestel analysis
It is very obvious that the food industry is a very strong industry all around the globe. There are
some factors which plays an important role in the working of food business. These factors are:
Political: The public health policies are pushing the food companies like Annie foods to add
more healthier options in their menu. The food must be made of lower sodium and sugar intakes.
The government has also laid the expansive regulatory frameworks which includes the
cleanliness and hygiene regulations for the kitchen and the standards for storing and transporting
the food. All these political regulations make the food industry one of the most tightly regulated
industry. The customers of the company must not be offered a poor quality nutrition. Such
complex conditions in the regulation cuts the profit margin of small companies like Annie.
Along with this, due to pandemic, government has become more strict especially for the food
related companies. The imposition of lock downs have made it hard for the companies like
Annie foods to manage their materials and deliver to some hotspot areas.
Economic: The economic condition of the country is very important for the company to run
smoothly and profitably (Zahra, 2021). The high rates of unemployment has affected the

progress of company. Low income people believe that making food in the house is a cheaper
option than ordering from outside. The healthy food meals offered by Annie foods is more
expensive when compared to the fast food and other cuisines. Moreover, the general trend is to
get richer and thus people have more money to spend on luxury restaurant. This affects the
business of Annie foods to compete with the premium class food services. Labour costs are
increasing day by day which is becoming expensive for Annie foods. This increase in rates is a
result of growing demands for the employee and higher government expectations for minimum
wages. The increasing labour costs results in less margin for the business and thus less profit.
Social: The trends in the industry of Annie foods shifts based on the needs and requirements of
customers. Annie foods is forced to produce more healthier options in their variety of food they
offer. This is because people are more interested in maintaining their health and staying fit.
There is a rise in organic and vegan products more than ever. These changes in the lifestyle of
people have brought many changes in the making of food within Annie foods. People are
looking to healthier options to fuel their body which Annie foods must adapt in order to survive
the market. Along with this, people also have the individual dietary preferences which must be
fulfilled by the company (Drobyazko, and et.al., 2019). This has lead to customers putting
higher expectations on the companies running in food industry. Annie foods have to make
certain changes to make their customers happy and satisfied.
Technological: The growth of technology in pas few years is outstanding. Technology is used in
the food industry as well. It can help Annie foods to gain a competitive advantage by using
technology in the making of food labels and production process. Technology has created many
types of automation which includes the self checkout system and online ordering system. Such
technology is made to make things easy for customers.
Environmental: The food industry is not just pivoted towards the healthy food but also the
environmental repercussions of the food that people eat. Meat cause harm to the environment as
its production and making of red meats uses large amount of water and form a high level of
carbon footprint. Along with the meat industry is tearing down forests to create space for farms.
Annie foods must consider the negative impacts of their business.
Legal: Annie foods has to follow the strict rules and legislature which is related to the making of
foods and maintain the standards of the place (Ruchkina, and et.al., 2017). the food business

must be extremely careful in ensuring to stay within the boundaries of rules and prevent from
having any law suits regarding the quality of food offered by Annie foods.
l壱Product description
Annie food place offers a wide range of dishes to fulfil the cravings of their customers. They
have divided the customers into different segments based on their choices and priorities. The age
of the customers is an important matter in the area of food. Annie offers food according to the
requirements depending on the age (Chowdhury, Audretsch, and Belitski, 2019.). Small kids
prefer less spicy food and elderly people are more into soft food items. The company considers
all this options in their food menu. The food delivered by the company is done a whole hygienic
method with the availability of no contact services. Along with this the company offers many
meal kit services for the people working and have no time to cook. Another type of product
offered by the Annie foods place is the availability of dietary food which is done by considering
the nutrition specialists. This a great service offered for the people who are motivated to stay fit
and healthy. The food services have the cuisines of the local taste as well as some dishes based
on other cuisines like French and European. Amidst this pandemic, Annie foods also added the
food which will help in boosting the immunity of the customers. The making of all the food is
done very hygienically, the material used are fresh and the packages to store food are worth the
investment.
l壱Competitor analysis
Porter’s five forces
Threat of new entrant: This threat is high in the industry of Annie foods. It is because the
presence of very less barriers to entry this market. Setting a food service business is a very cheap
way of stepping into an entrepreneurship. There is an easy access to collect funds for starting a
food business. Thus, threat of new entrants is very high.
Threat of substitution: Threat occurs when the demand of the product is affected by changing
prices coming from the substitution product. It occurs due to the competition in price. Annie
foods have to maintain the average checked price to avoid loosing any customers. This threat is
high.
Bargaining power of buyer: The ability of the buyers increase which can result in forcefully
reducing the prices. This power increases with the purchase decision. When more amount of

products are purchased then the power of bargaining is enhanced. Customers demand good food
quantity in an affordable price. This power is comparatively low.
Bargaining power of suppliers: It is related with the given product and services. The materials
required for food are from external sources. The suppliers selling the meat can range the price
according to the company (Landström, 2020). On the other hand the supply of organic products
and antibiotic free meat costs more for Annie foods. This forces is low.
Intensity of rivalry: Competition in the food industry is very high. Thus companies like Annie
foods must focus on gaining competitive advantage. This can be done by changing price and
bringing improvements in the product and its quality. Rivalry is increased when the firms are
competing against the same customers. Revenues can be increased through the expansion of
market. This force is high.
l壱Operation plan
Operations is known as the activities and tasks performed on daily basis for the growth of
business. These activities will help the enterprise become a success and achieve the desired
goals. The operation of the business is done keeping the required items well inside the budget of
the company. It is important for any business to keep the resources become available at prior
times especially in the industry of the Annie foods. The required products are ordered during the
time when they are best in the quality and well before from they are needed in the kitchen. This
helps in avoiding any delays of food services to the customers (Brandini, 2020). Being in the
food industry, Annie foods offers wide variety of food products to its customers based on their
preferences. The business operations of the company also include the department responsible for
advertising the company and its products to reach out to large audience. The sales person of the
company makes sure to convince some groups of people to try the products offered by Annie
foods. Along with this, the company has also opened various ways of payment which includes
the online portals as well as cash on delivery to keep it easy for the customers. There are a group
of people working in the company to handle the online platforms of the company and manage
the business operations on these channels.
l壱Risk and contingency plan
For every business working in the food industry will face one or the other risk and
contingencies. Products related to the food are not viable and available at every time. Hot

serving foods are popular during the winter while the items supposed to served in low
temperatures are more in demand in winters. Along with the there are many factors which
affects the demands of certain food items which includes the seasonally available food products
and raw materials. The craving of customers changes every time they are out for a meal. It is
hard to identify the needs and popularity of food items as people have become more
unpredictable in their choices. The economy of the country plays a huge importance in the
business of Annie foods. The impact of pandemic as well as the effects of Brexit has changed the
businesses and source of income for majority of the population. People are spending less of
outside food and more on raw material to cook in the house which is a cheaper option. Annie
foods provide its food and services in Edinburg location which is popular for food industry. This
has created a high level of competition among similar companies like Annie foods.
l壱Sales and marketing strategy
The marketing mix strategy of the Annie foods is:
Product: Products offered by Annie foods are the food and meal deals which are popular among
the population of UK. The food cuisines of Annie foods are based on the people leaving in the
nearby areas where the company delivers its food. They even offer the special dietary and vegan
options for the people prioritising that. The company is open to make customisable food options
related to the preferences of the customers (lut, Teller, and Floh, 2018).
Price: The process range offered by Annie foods is very competitive. The company offered
good quality of food items in affordable prices along with having enough quantity to make the
purchase worthy. The dietary food options are a little bit expensive than the normal food as the
materials and process of making them required lot costs.
Place: The company is providing in services in the area in and nearby the Edinburg. This is a
popular market for food and related products. Working in such place comes with many
opportunities for Annie foods. The location gives access to the material needed in the making of
meals easily.
Promotion: Annie foods has not lacked in promoting their company. The company is very
active on online and digital platforms for social media. The company keeps posting pictures of
mouth watering food items which makes the people crave for it. This promotion strategy helps
the company attract many potential customers.

l壱Finance and funding strategy
Starting a business of any types either small or large needs its financial and funding status.
Investing in a business comes with risks and obstacles. In a market to start a quick business one
needs funding. One can apply for a loan, short-term or long term-loan. In many ways a funding
can be done.
Working Capital Loan:
For a business which is a small one, this type of funding is best and very resourceful. This loan
leads to fulfil short-term needs of the company. In this business of food service, if person needs
money on daily basis then this loan can be very much helpful. In this loan the funding is
designated or set for a half to one year. The amount is to repaid with some percent of interest
along with the principle amount. And this percent is on the basis of assessment of credit risk of a
business.
Crowd funding:
These days technology and online stuff are very much used. So for the people who likes to do
things online then this type is made for them. In this funding a person can finance its business
via internet by some investors group. And this funding is very much helpful as the details and
how much the person has spent from the loan is directly in front of them, in their hands. With
the help of the mobile phone the person can directly see the details as well as the status. Crowd
funding is a group financing individuals that help in business ideas in reaching out to various
prospective investors through different platforms. And the investments being done can either be
debt or equity basis. Many bonus or benefits and awards are given in trading or in exchange for
investments, and these awards are given through their websites.
Bank loans:
It is a very common platform that provides loans to small businesses. It gives a very good record
and collateral. A person can choose options like long-term loan or short-term loan per there
needs.

l壱Management Team
Human body cannot work with a single cell it needs different cells to do their particular
functions the same is with a business. A company or an organisation does not work from one
single person. It needs a team, it needs employees. Businesses have many responsibilities and
different roles to play. These roles and responsibilities are done by the teams and the employees.
There are many different persons for different work and these people stand on different posts. In
a food service business such as Annie foods, many people are required. This is a food business
and the most important person for that is Chef (Pomering, 2017). Without the Chef business
cannot work. Even if it is a small business it doesn’t mean to have only 1 chef, it can have two to
three chefs. The next thing needed is a person to deliver food, if there is no one to deliver food
then it doesn’t make sense to have a food service without the food being delivered. This business
needs a person for seeing finances and to handle the funding and finances. The person given this
work must be a trust worthy person, the person who can handle the pressure of how to and how
much to spend on things. So a management team is a must required for a business.
·CONCLUSION
It can concluded from this business report, the complete business plan and strategies of a
small company like Annie foods. It deals with the industry factors which can influence the
business of the company in either positive or negative way. The different of funds used in the
working of business is explained in the report along with the risks which comes with working in
food industry.

·REFERENCES
·Books and Journals
Anderson, B.S., Wennberg, K. and McMullen, J.S., 2019. Enhancing quantitative theory-testing
entrepreneurship research. Journal of Business Venturing. 34(5). p.105928.
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of Retailing. 94(2). pp.113-135.
Brandini, A., 2020. Food industry dynamism and evolving business models: food delivery
system as a manifestation of food industry's evolution.
Chowdhury, F., Audretsch, D.B. and Belitski, M., 2019. Institutions and entrepreneurship
quality. Entrepreneurship Theory and Practice. 43(1). pp.51-81.
Drobyazko, and et.al., 2019. Entrepreneurship innovation model for telecommunications
enterprises. Journal of Entrepreneurship Education. 22(2). pp.1-6.
Landström, H., 2020. The evolution of entrepreneurship as a scholarly field. Foundations and
Trends® in Entrepreneurship. 16(2). pp.65-243.
Olanrewaju, and et.al., 2020. Social media and entrepreneurship research: A literature review.
International Journal of Information Management. 50. pp.90-110.
Pomering, A., 2017. Marketing for sustainability: Extending the conceptualisation of the
marketing mix to drive value for individuals and society at large. Australasian
Marketing Journal (AMJ). 25(2). pp.157-165.
Ruchkina, and et.al., 2017. Small and medium enterprises in the context of regional development
and innovations. Journal of International Studies. 10(4).
Wadhwani, and et.al., 2020. Context, time, and change: Historical approaches to
entrepreneurship research. Strategic Entrepreneurship Journal. 14(1). pp.3-19.
Zahra, S.A., 2021. International entrepreneurship in the post Covid world. Journal of World
Business. 56(1). p.101143.