University Report: Analysis of Plant-Based Business Structure, BUS0001

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This report provides a detailed analysis of the structure of a plant-based business. It begins with a PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors influencing the business. The report then assesses various legal frameworks, including GDPR and consumer rights, outlining their strengths and weaknesses. It also explores financing options for startups, such as crowdfunding and merchant cash advances. Furthermore, the report identifies potential sectors for the plant-based business within the UK, commenting on their value to the economy. Key HR policies and their importance in the modern workplace are also discussed. The report concludes with a brief reflective statement.
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STRUCTURE OF BUSINESS
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Contents
INTRODUCTION...........................................................................................................................3
Question 1........................................................................................................................................3
PESTLE Analysis of plant based business..................................................................................3
Question 2........................................................................................................................................5
Range of legal frameworks with their strength and weaknesses. Also assess the steps for
financing for a start up.................................................................................................................5
Question 3........................................................................................................................................8
Identify which sector the new plant based food start-up may operate in addition to two other
sectors within the UK and then comment on their value to the UK economy. In addition,
identify HR policies and comment on their importance to the modern workplace. Finally, write
a brief reflective statement...........................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
An organizational structure defines how activities such as task allocation, coordination, and
supervision are directed toward the achievement of organizational aims. Organizational structure
affects organizational action and provides the foundation on which standard operating
procedures and routines rest. This report contains information such as pestle analysis of business
that operates in the sector of serving in goods extracted from plants. Legal frameworks are
assessed with the strength and weakness of it. Also ways for financing the start ups has been
looked after for the new entrants. This report also gives an analysis that in which sector plant
based business can be rooted and viable in many areas. Policies of HR and reflective statement is
also included in the report (Rong and et.al., 2017).
Question 1
PESTLE Analysis of plant based business
Political Factors-
The pressure of the government of UK is high because they tend to interfere a lot
between these activities they make it difficult for this sector to operate by making changes in the
regulations. It is necessary that they support these businesses so that they can increase the level
of awareness in the market. The government of UK is making policies for the sector of
agriculture. They are towards the positive side of this industry of food making through
vegetables which is beneficial for the people. Although this sector also has some common trade
regulations like other businesses (Lawton, 2017).
Economic Factors-
This factor will help the people who operates in this sector to know that whether or not
business will be able to establish, achieve growth and sustain their market in UK. There are
many things which need to be assessed such as rate of inflation, rate of interest, spending of
consumers and their power, rate of taxes and recession in countries that are different. The
procedure of selling vegan products uses some channels such as shops that are specialized such
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as Green Bay supermarket UK or sell it online. Mostly chances are that this business will
because of the opportunities and demand for it in the market (Chauhan, Dey and Jha, 2016).
Social Factors-
These factors will help the companies operating in this sector to know the habits,
preferences and trends of people in the market. Different people have different opinion on this
aspect but many of them are aware of its benefits such as bringing ecological balance in the
environment. They are more concerned about their health and that is why they are shifting to this
approach. Although one thing that is needed to be kept in mind by the companies that are
operating in this sector is that they need to introduce or offer a wide variety of product mix so
that they can meet the cultural diversity of the customers of UK.
Technological Factors-
This aspect helps the companies dealing in this sector to gain the advantage over their
competitors. There are many issues which need to be looked after such as issues that are
technological from manufacturing the products to monitoring the supply of it. Many businesses
take orders online and they make them available at their noted facility. This sector has the scope
to avail the technologies which brings automation in their work so that their sale can be
enhanced. It is necessary that they take the use of organisms that are modified genetically but
they threaten the supply of the products. It is necessary because it helps to reduce the level of
dependency of such products that includes organisms that are genetically modified.
Environment Factors-
In order to make this food different procedures are needed to be followed such as it needs
to be purified, it is necessary that the vegetables are extracted from fertilizers that have chemicals
in it, spread of pesticides, pharmaceuticals and preservatives. It is because of the global warming
that production level and extraction of farmers is disrupted but the companies are putting all of
their efforts in order to increase the level of sustainability. It also highlights how the companies
are trying to overcome the challenges so that they can maintain the chain of supply. It is because
of the environmental factors and concern of people for the environment that people are shifting
to vegan or vegetarian food (Grefen and Turetken, 2018).
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Legal Factors-
There are various rules and regulations for the companies that are operating in this sector
so that they can serve in the market with the support of people and the government. There are
some specific methods which needs to be followed in the stages of production to processing to
marketing of vegan goods. It is necessary that the business operating in this sector looks after the
aspects such as law for protection of environment, labor law, antitrust law seriously as it helps to
make sure that the operations of business as well as the workers are safe. These policies will help
them to improve the image of the brand and gain competitive advantage over others. There are
strict measures taken by government if these are not followed which can stop the business of the
company.
Question 2
Range of legal frameworks with their strength and weaknesses. Also assess the steps for
financing for a start up.
Legal Frameworks
GDPR Framework-
This acronym stands for General Data Protection Regulation, it is necessary for the
businesses that are newly launched so that they can comply with the measures which relates with
the technical department of the company and keep the data safe which is personal and that will
be easy to process. It is necessary that start up comply with the principle of accountability, it is
their responsibility to process the principles with the regulation of data. They can achieve it
through a structure which needs to be more private so that they can manage the security of their
personal data. It is important for the company to implement these standards if the company has
not developed their own framework. Standards will help the business to get certification for the
regulators such as Information Commissioner Office of UK which will ensure that operations of
business are authorized as they comply with the law (Lu and et.al., 2016).
Strength of GDPR-
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Improved Cyber security-
The framework of GDPR has helped the companies to improve their cyber security as
they were facing issues since the internet came. This framework helps by directly assessing the
standard of privacy and security and they limit the breach of data that has potential
(Bandyopadhyay and Barua, 2016).
Safety of Brand-
Companies which operates on a large scale in the vegan goods have faced the situation of
breaches in data which has affected their image in the market. It is because every customer
values their privacy and if anything of this sort happens it can lead to a high amount of damage.
But with the help of GDPR customers are able to share the information which is private to the
company and even the company is able to maintain the relationship which is loyal so that they
can make the relationship loyal between them.
Weakness-
Cost of Compliance-
When the aspect of GDPR was introduced then also most of the firms relied on the
Officer of Data Protection to work for the policies that are internal. It is because the cost of
implementing this factor is very high which varies on the nature of the business (Miglietta and
et.al., 2018).
Penalties related with Non Compliance-
If the company fails to protect the data of the consumers which is personal then the
penalty charged on them can close the operations of the business.
Consumer Right Framework-
This act was introduced in 1986 for the protection of consumers so that no wrong or
illegal activity or false measures are taken by the company to fool the consumer. There are some
objectives which is served by this act such as through redressal agencies they can report their
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case and file against the company so that they can be looked under and the consumer get the
compensation and justice for it. Other than this it gives rights to consumers so that they can take
a case for the wrongdoing happening in front of them.
Strength
There are laws of protection which protects the customer against the strategies of
marketing of products which can be damage to them (Schell, 2020).
The consumers are protected under the quality of goods so that their health remains safe.
Weakness
In some of the cases companies tries to backfire the case which is reported by the
consumers by bribing the officials which impose a high penalty on consumers.
There are many ways in which a business of vegan or vegetarian food can be started.
Crowdfunding-
This aspect will help the entrepreneurs to get investment from different investors so that
operations of the business can be boosted.
Merchant cash advances-
This aspect allows the entrepreneur to get the investment and in return they will ask for a
part of sales that is made through debit or credit card until they have cleared the advances or
overdraft of the return of investor. It is considered as opposite of small business loan and for the
companies who are dealing in the business of vegan goods needs to consider it as their last report
because it turns out to be a very expensive method (Mujwahuzi and Mbogo, 2020).
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Question 3
Identify which sector the new plant based food start-up may operate in addition to two other
sectors within the UK and then comment on their value to the UK economy. In addition, identify
HR policies and comment on their importance to the modern workplace. Finally, write a brief
reflective statement
There are many sectors in which an individual can start his business. There is a lot of scope in
starting the business of food truck and serve the food which is purely vegetarian or vegan. The
rate of return is good and the cost of setting up the business is low. People in UK eat vegetables
in the evening and these businesses can help them turn it into their evening snack. Another
option is to open a store or supermarket or use the platform of online or both such as Green Bay
as it operates using both the platforms in London. There is another option and that is to make a
bar which offers vegan food instead of meat. There are places where this takes place such as
Australia. Although they also serve meat so that they can serve needs of different people and
dine them together at one place. This method can be adapted by the people of UK. Entrepreneurs
have a wide variety of options to consider to start up a business which involves food that is
vegetarian or vegan as they can make an international restaurant which serves vegan food and if
successful that can turn out to be a profitable venture. Other than this they can open or start up a
venture of business which goes by subscription box. There are companies such as Mindful Chef
which is also considered as one of the best start ups because of the rate of their success. This
company serves health food box and kits of meals that are different for vegan people and
different for meat eaters although they say the taste of both the food is exquisite and kind of
same which makes it easy for the people to shift from non vegetarian to vegetarian and this
increases the chances of business to become a successful venture. There can be a business where
supermarket and subscription box are combined such as the Vegan Kind. If the business needs to
be start up at a large scale then they can enter into the line of manufacturing and production of
vegan food. There are still many sectors that can be availed by the entrepreneur in this sector.
In order to reflect changes and notice a contribution in the economy of the country it is
necessary that UK stop relying on America and make the substitutes of meat food as the business
mentioned above will open up a new sector in the economy with a positive effect because of its
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high trend. Also with this they will be able to fill the gap between America and UK for this
sector. There are ventures in which males can get protein from plant and there is a business for it
in which all the body builders consume protein powder in which US has the most brands. If these
things are taken in mind for the start ups then economy of UK can surely reflect positive
behavior (Blake, 2016).
HR Policies
Health and Safety-
HR of the company looks after this aspect so that they can provide an environment that is
safe and healthy for the employees. Any company puts all of the measures of safety and their
efforts so that the employees of the company can reduce the chances of getting into an injury.
Company believes that if the culture of the company implies safety then they will be able to
increase the level of productivity and reduce the miscellaneous costs. Company also motivates
their employees to look after their health so that they can improve their performance without any
disruption. Many companies initiate a program for this which goes by program of health and
promotion. Some of them also have a program which involves session of counseling so that they
can deal with their personal family related problems without affecting their work (Marcos-
Pablos, García-Holgado and García-Peñalvo, 2019).
Diversity Process-
HR policies indicate that it is necessary that company brings diversity in their culture as
this will help them to increase the level of coordination between the members of team and
increase the reach in other and different countries with the help of right strategies and sharing of
knowledge between the employees of the company. employees of different culture will help the
company to know about their trends and patterns of culture so that they can form their strategies
on the basis of that. It is important to maintain the culture as diversity because it will help the
company to form a team which can help them to assess the opportunity in a more clear way with
a diversified persona.
Equality-
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This policy of HR makes sure that all the employees of the company irrespective of their
post, achievements or designation they will be treated as equal. This creates a sense of respect in
the minds of employees which they want but never ask for. This feeling keeps them motivated
and retain in the company for a long period of time. They work up to their potential so that they
can achieve the goals and attain more respect. This is necessary for every employee as no one
wants to be a part of team where they are treated as biased as this makes them feel dissatisfied
and there is no trust among them which affect the work and performance of the employee as well
as the power of retention (AJAGBE and et.al., 2016.). This is the reason why it is necessary for
the company to treat everyone as equal and meet their level of satisfaction.
Reflective Statement-
I believe that the venture of vegan food business is profitable and there are many reasons
behind it as people are more concerned about their health even me, I workout everyday maintain
a proper diet so that I remain fit. This is the mindset and approach of many people which will
take this whole sector a long way ahead. Staying fit is the recent trend, also other than this many
of the people are concerned for the environment and bringing ecological balance by putting a
stop to animal consumption. Organizations such as PETA is influencing the minds of people and
increasing the awareness of people in this category. They believe that it is affecting the
environment and wildlife and people should turn to vegan so that they can live their life
peacefully. Many of the people are working on the basis of this approach and they are feeling
that any contribution will be made by them in order to preserve the environment. These both the
approaches is increasing and making people adapt the culture of vegan products and food. In
America people have started consuming goods that are based and extracted from plants and they
have established many companies which are operating in this sector. This has increased the gap
between the economy of UK and America. But it also opens up opportunity for the young and
new entrepreneurs of UK to set their foot in this sector, serve as per the needs and wants of
people and achieve success in the market so that economy can grow and the gap between both
the countries can be reduced.
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CONCLUSION
From the above studies it has been analyzed that the venture of plant based business is viable.
Although in order to continue their operations they need to work in the compliance of needs of
people and serve under the rules and regulations provided to them so that they are allowed to
serve with the assistance of government which will help the businesses to achieve growth. It is
necessary that new start ups complies with the legal framework so that the data of the users are
secured and brand of the company do not loose their reputation in the market. they also need to
provide fair schemes and products to customers as they have rights and if reported against them
can charge a high level of penalty. Other than this policies of HR and the area where plant based
business can be operated successfully is also assessed.
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REFERENCES
Books and Journal
AJAGBE, M.A., and et.al., 2016. HOW ORGANIZATIONAL STRUCTURE AIDS BUSINESS
PERFORMANCE. CLEAR International Journal of Research in Commerce &
Management, 7(8).
Blake, A., 2016. Dynamic directors: Aligning board structure for business success. Springer.
Miglietta, N., and et.al., 2018. Capital structure and business process management: evidence
from ambidextrous organizations. Business Process Management Journal.
Lu, Y., and et.al., 2016, May. A similarity measurement based on structure of business process.
In 2016 IEEE 20th International Conference on Computer Supported Cooperative Work in
Design (CSCWD) (pp. 498-503). IEEE.
Grefen, P.W.P.J. and Turetken, O., 2018. Achieving business process agility through service
engineering in extended business networks. BPTrends, April.
Mujwahuzi, G.V. and Mbogo, C.J., 2020. Effects of Capital Structure on Business Profitability
of Processing Enterprises Listed on the Dar es Salaam Stock Exchange, Tanzania. Journal of
Finance and Accounting, 8(4), p.165.
Lawton, T.C., 2017. Cleared for take-off: Structure and strategy in the low fare airline business.
Routledge.
Rong, K., and et.al., 2017. Organizing business ecosystems in emerging electric vehicle industry:
Structure, mechanism, and integrated configuration. Energy Policy, 107, pp.234-247.
Marcos-Pablos, S., García-Holgado, A. and García-Peñalvo, F.J., 2019, October. Modelling the
business structure of a digital health ecosystem. In Proceedings of the Seventh International
Conference on Technological Ecosystems for Enhancing Multiculturality (pp. 838-846).
Schell, J.M., 2020. Private equity funds: Business structure and operations. Law Journal Press.
Bandyopadhyay, A. and Barua, N.M., 2016. Factors determining capital structure and corporate
performance in India: Studying the business cycle effects. The Quarterly Review of
Economics and Finance, 61, pp.160-172.
Chauhan, Y., Dey, D.K. and Jha, R.R., 2016. Board structure, controlling ownership, and
business groups: Evidence from India. Emerging Markets Review, 27, pp.63-83.
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