LSC UoS BA Business: Diet Chips Business Plan & Market Strategies

This project outlines a business plan for Diet Chips, a company focused on providing healthy, oil-free chips to health-conscious consumers in the UK. The report details the business concept, market feasibility through SWOT and PESTEL analyses, industry analysis using Porter's Five Forces, organizational analysis focusing on culture and leadership, and financial feasibility assessments including horizontal, vertical, and ratio analyses. The plan also incorporates a value chain analysis to identify areas for improvement and a business canvas model to visualize key aspects of the business. Risk management strategies, both qualitative and quantitative, are discussed to address potential challenges. The document provides a comprehensive overview of the entrepreneurial venture, aiming for sustainable growth in the competitive snack market. Desklib provides similar solved assignments and past papers for students.

Entrepreneur and business
development

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business concept..........................................................................................................................3
Discussion of Market, industry, organizational and financial feasibility....................................4
Diet chips value chain and business canvas model:.....................................................................7
Risk management: quantitative and qualitative: .........................................................................9
CONCLUSION
REFERENCES................................................................................................................................1

INTRODUCTION
This Entrepreneurial project will going show roles of entrepreneur in starting a new
business, this report is based on diet chips located in UK which sell chips. The purpose of
company is providing healthy, oil-free chips to customer, and mainly to gain sustainable growth
in the market. People are more aware about their health these days, we provide oil-free or dry fry
chips to reduce cholesterol to maintain health of the consumer, and we have added new favour to
attract more customer with keeping health precaution in mind. Later on this report will also show
implementation of new models and their elements, entrepreneur's innovation and creativity,
market research, industry assessment and financial feasibility of the company (Bratton 2020).
Later we will discuss value chain model and its key elements and businesses model in references
with diet chips by conducting qualitative and quantitative aspects.
MAIN BODY
Business concept
Many individuals, adults and kids, find it difficult to refuse a packet of chips, among the
most commonly accessible convenience foods. As a start-up company Diet chips started a
healthy chips company because there are so many individuals who are unable to eat chips
because of oil, sugar, and fat. So, here the company will produce a healthy diet tasty chips for
everyone kids to adults.
Company target market will be group of individuals that does not want high calories who are
health conscious and prefer to eat healthy diet food. In market there are many competitors of
chips but there's no major competitor of the diet chips in market it is beneficial for the company
to positioning itself in the market(Kim and et.al2018). Company mission will be to obtain as
much as market sector of the snack eater. Company vision is to put their consumer on very first
their health and the product quality is main priority of the company and organization will make
sure to maintain their quality and product standard in the market. The core of the organization is
business knowledge(Krienbuehl, 2020). The Diet chips success in conducting a business online
and also in the retail market, the various legal structures for the business are essential for the
creation of a strategy that will be beneficial on the online platform and where special
circumstances are best recognized.

Company will be certificated approved from the government that they'll make a healthy diet
chips for the people. Company. Susceptibility to start-up costs and financial organization, as well
as knowledge of the market in which the Diet chips co. will operate their business. Company will
meet certain food standards that are hygienic and the safety method for the manufacturing of diet
chips. The company's main headquarters, which will operate all its operations in Scotland.
Company have two partners who is going to raise funds for the company start-up and share the
profit and loss equally. Distribution strategy that seeks to stock items in several logical channels
as feasible(Kuznetsova, 2020). Because diet chips will not be a superior product and it will
surely have strong consumption needs, it may be found in a variety of regions across the country,
including urban and rural area of country. The firm will continue to focus on younger clients in
order to drive traffic to their Social media page and become a relevant subject of discussion on
social media. The innovative flavours of diet chips will undoubtedly become a people
preference, and this business's profitability will increase as time goes on, and the firm will launch
more new goods.
Discussion of Market, industry, organizational and financial feasibility
Market feasibility:
Detail examination of market through SWOT Analysis:
Strength: the strength of crisp chips is complete new taste and innovated idea of oil free or
roasted chips, the primary requirements in snacks is chips (GURL 2017). We will add new
flavours which was never used before by any chips company to win the market.
Weakness: crisp chips is new venture with low budget and lack of information about food
industry of the UK. And mainly this is new concept so success of diet chips totally depends on
customer's liking.
Opportunity: In today's digital world it is right time to use social media to influence public or
run advertisement about the product which is diet chips. The Latest technology and machinery is
available to increase the productivity, new packaging design will going to attract customers.
These eye-catching design of diet chips packs is an opportunity to defeat competitors in the
market.
Threats: There is already too much competition in food industry, so it is very difficult to defeat
already existing company's. For diet chips our main threat is import and export policies of

government. These strict regulation are not allowing us to import flavours from various nations
such as India, threat of failure is always there when starting a new business.
Pestel analysis:
Political: there are many political factors which will affect the company such as every
day changing political condition of UK, the government strictly control food industry as per
public health and safety measure (David 2019). It is challenging for diet chips to survive in this
strict political environment, but on the other hand government will allow diet chips because it
promotes healthy eating.
Economical: the economy of UK is stable, it is good for any new start up. For diet chips it is
very important to examine economic level because government keep changing rules and
regulation of import and export and diet chips flavour are mainly imported from other countries.
Social: this factor is very important for diet chips because the success of this innovation mainly
depends on upon liking of the customer mainly young generation who are foodies as well as
health conscious.
Technological: this factor play crucial role in production of chips, there are many competitors
who are ready to defeat diet chips have the latest technology available (Ungureanu and
Ungureanu 2016). Diet chips need to have new and fast technology to stay ahead of its
competitors.
Environment: diet chips will look for less usage of plastic and try to maintain to environment
restrictions provided by the government. Diet chips online stores will deliver fresh and healthy
chips directly to homes.
Legal: diet chips will complete all rules and regulation provided by the government to avoid any
kind of lawsuit. The food and safety regulation act of UK have provided licence to manufacture
chips (FOOD BUSINESS REGISTRATION, UK).
Industry analysis:
Analysis of industry helps us understand various aspects of the industry such as market
position, current competitors, corporate demand and supply. Michael porter's five forces helps us
determine and analysis the industry (Perera 2020).
Rivals in the industry: competitors are headache in every industry, they slow down every
process including growth and success of the company's for diet chips their biggest competitor are
ready to defeat the organization. They will produce the same product with same attractiveness

such as oil free chips or diet chips, latest and expensive technology used by them will going to
double their speed and win the market. There is high risk of failure due to competition.
New entry or newcomers: when new entry come first time in the market they just steal the idea
of their competitors for diet chips this is a major issue because we ourself is new to the industry.
These new entry have moderate level of risk, These new entry have good amount of budget to
purchase new machinery and even import variety of flavours from other countries, facing them is
now more difficult for diet chips.
The power of suppliers: suppliers carries various power, the power of bargaining is main.
Suppliers these days have more contracts to various other company's. They supply goods to new
entry in different and increased price tags, diet chips never depends on one supplier rather we
will keep changing to new supplies who is ready to provide us same goods in lower rates. Risk
associated with suppliers is low.
The power of consumer: consumers carries various important powers and rights with them such
as rights provided by government in case of any complain or accident. Other than this consumer
also have bargaining power, they use these power to bring down rates of the product but in the
case of diet chips they can not bargain because one pack of diet chips have same rates as other
chips available. The risk is very high in consumer liking or disliking of the product.
Substitute products: competitors as well as new entry will going to steal the creative idea of oil
free chips, they have advantage of the latest technology and newest machinery to simply copy
the concept of diet chips in the market.
Organization analysis:
Culture: it means to behave in proper way within the organization environment (Weaver
and Nelson 2016). Diet chips will create unbiased and non-discriminatory workplace, the
company have planned to give opportunities to each and every employee to perform well and
became employee of the month.
Leadership: leaders of diet chips will focus on innovation, creativity and development of new
products. They also motivate their sub-ordinates to give their best performances, diet chips
leader have decided to run various programs to enhance the skills of the employees.
Financial analysis:
It means to measure cost and investment structure and to calculate performance of similar
industries, to identify expenditure and predict initial sales.

Horizontal & vertical analysis: It means when a firm approach horizontal analysis, they
examine financial data through series of reporting sets but on the other hand when a firm
approach vertical analysis they able to understand financial data in proper manner. Each financial
statement is analysed in proportion of various items, vertical analysis of diet chips is important
for financial outcomes.
Ratio analysis: Ratio analysis is used by firms to compute their ratio to high performing
competitors in food industry. Examination of sales patterns to identify weather sales are
declining because of various factors such as customers or region, examination of expenses to
find out is there any claims or unusual expenditure that required investigation in reporting
period. Revenue and expenses are examined for future budgeting estimate results of diet chips.
Trend analysis: When a new business identify certain changes in organization, they evaluate
trend analysis to find out whether sales of product is decreasing or increasing and identify what
are the factors that are behind it such as customer, area, claims. Trend analysis helps diet chips to
predict future changes and movement, diet chips examine further spending of income and
expenditure with the help to trend analysis of the company.
Diet chips value chain and business canvas model:
Value chain analysis: It means to evaluate where opportunities for betterment and
improvement lies, by company's value chain (Mudambi and Puck 2016). Examine value chain
analysis allows firms to consider every step that add or subtract value of diet chips final product
(Carter and Carter 2020). This analysis helps in many ways such as to reduce cost or product
differentiation. It is mechanism used by organization to generate income from starting to end of
the production.
Primary activities of diet chips:
Inbound logistics: Diet chips will hire suppliers to pick up best quality potato from framers and
growers, the diet chips gain value from firm's unique flavour and packaging. Which improve
value of the company.
Operations: this means process of turning raw material into finished goods, the diet chips will
pack its product with nitrogen gas to protect it and give long life to product freshness.
Outbound logistics: the diet chips do not have any intermediary, the products will be sold
though retailers. Delivering of product from storehouse to retailers location will be essential.

Sales and marketing: diet chips will spend more budget in promotional campaigns. The firm
will conduct marketing strategies to cover surrounding area and covering nation as well.
Services: it means after the sales services to maintain product and consumer experience, services
can be provided in various ways for diet chips we provide fresh product service.
Secondary activities of diet chips:
Procurement: it is the process of acquisition of resources, it includes finding raw material and
negotiating with suppliers in its rates. Diet chips get their raw material from farmers and grower
at fix rates because there is no negotiation in potatoes and vegetable.
Human resource management: hiring of talent and extracting best out them is major challenge
for any organization, for diet chips recruiting employee who is full of skills is very important and
most importantly they should be loyal to their work because of secrets of company's flavours is
most important thing.
Infrastructure: a company's infrastructure is the most crucial element in the organization, a
good infrastructure sure the long term growth of the company whereas a bad infrastructure will
bring down company very soon.
Technological: this means company's latest technology used by them this includes new heavy
machinery and automation, for diet chips design and equipment of hardware and software is very
important. Diet chips need to upgrade their technology on regular basis to maintain their speed in
growth.
Business canvas model: it means how firm's creates and deliver value (Ojasalo and Ojasalo
2018). Various elements to build business canvas model such as:
Customer segments: differentiating customer into various segmentation to identify their taste.
The goal of segmentation of customer by diet chips is to find out how to maximize value of each
and every customer. This allows diet chips to address various customer in effective way.
Value proposition: it means promise made by company to their customer to provide high
quality products, a value proportion is one of the marketing strategy of diet chips.
Channels: It identifies how a company reach its potential customers. Diet chips will promote its
product through these channels such as social media, newspaper or TV.
Customer relationships: it shows types of relationships a firm maintain with their employees,
after customer segmentation company keep various range of relationship with their permanent
consumer. Diet chips have developed the best relationship with our valuable customer.

Revenue streams: a firm earns revenue not only from sales but through various other modes.
diet chips will use subscription fees, brokerage fees and adversing fees whereas tenting, leasing
and assets lending to generate revenue streams.
Key resources: for diet chips their key resources is potatoes, this is main ingredient in making of
chips.
Key activities: the key activity of diet chips is production of oil free chips, the main purpose or
activity of diet chips is to educate customers.
Key partners: for diet chips their key partners are farmers and growers, they will provide fresh
potatoes directly to production house for further processing.
Cost structure: diet chips cost of input in production and expenses such as salaries and wages.
Customer Value Channels Relations Revenue Resource Activities Partners Cost
Families Oil free Social
media
Discount Subscript
ion fees
Team productio
n
farmers Inputs
Health
consciou
s
New
ingredien
t
Websites Reviews Brokerag
e
Product Marketin
g & sales
Grower Expenses
Kids New
flavour
TV Loyalty (Adversit
ies) fees
Brand Educated
customer
s
Retailers Rent
Risk management: quantitative and qualitative:
A quantitative risk management identify measurable or defined data whereas qualitative risk
management is based on subjective and knowledge of data.
Qualitative: the qualitative risk management is commonly based on probability of risk on
subjective (Gupta and Thakkar 2018).
Risk register: it means probability is measured by ranking them, in high to low order. It is tool
to measure risk in any project, risk register have various information such as description,
assessment and response. After the probability, risk impact is analysed, the main purpose of
doing risk register is to overcome need of huge resources at certain time (Tiusanen 2017). Risk is
filtered out in diet chips and Risk register contains many elements such as risk category with

similar groups, risk breakdown and identification of numbers, a complete description of name of
the risk etc.
Risk description Impact Notes
Machine breakdown 5 (high) Have spare parts on site
Lack of raw material 1 (low) Have extra raw material
Quantitative: It is systematic analysis of risk to quantify the risk which is associated with
operation process, the result of quantitative examine risk of business.
Decision tree:
It means to combine various concepts of joint probability with expected monetary value, this
method is very useful when outcome of a plan and their probability are coming in sequence, this
is result of risk. The case of diet chips shows joint probability various outcome in sequence of
multiple probability of each and every outcome. To start the analysis it begins from left and
move to right, firstly examine the event in rectangle.
Sensitivity analysis: this analysis in quantitative risk shows how change in model variable
impact the outcome of the model it helps diet chips to decide alternative courses of action, for
example first set of data suggested validity of risk but on the other hand high sensitivity will
make one or more than one factor, other decision became more attractive and these elements are
taken in risk management. This analysis of diet chips can be very useful with various other
quantitative methods.
Profit and loss account:
Particulars Amount Amount
Sales 1000000
Cost of good sold 600000
Gross profit 400000
Expenses
Advertisement 60000
Rent 80000

Salaries & wages 50000
Commission 5000
Total 195000
Net Income 205000
Balance sheet:
Liabilities Amount Assets Amount
Capital 1000000 Land & building 1000000
Reserve 500000 Plant & machinery 400000
O/s expenses 100000 Furniture 100000
Creditors 50000 Stock 100000
Bills payable 10000 Debtors 60000
Total 1660000 Total 1660000
Conclusion
In this report we have understood how to start a new business, and we have shown diet chips as a
new enterprise in this report (Burns and Dewhurst 2016). Briefly understood the concept of
business, and we have done discussion on market analysis, we have also observed the strength
weakness, opportunity and threats of diet chips, later pestel model were also explained where
how political and other factors can impact the diet chips. Afterwards we have done industry
analysis which shows porters five factors in which we have understood how competitors and new
entry can have powerful impact on diet chips growth. In organizational analysis we have seen the
culture and leadership in the organization environment, whereas financial analysis teach us
investment and expenditure structure such as horizontal & vertical analysis, trend analysis and
ratios analysis were also discussed above. At last, we have discussed value chain and business
canvas model which shows us various details about diet chips.

REFERENCES
Books and journals
Bratton, J. ed., 2020. Organizational leadership. Sage.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Carter, M. and Carter, C., 2020. The Creative Business Model Canvas. Social Enterprise
Journal.
David, J., 2019. PESTEL analysis of the UK. Retrieved October. 30. p.2019.
Gupta, V.K. and Thakkar, J.J., 2018. A quantitative risk assessment methodology for
construction project. Sādhanā. 43(7)pp.1-16.
GURL, E., 2017. SWOT analysis: A theoretical review.
Kim, B.,and et.al2018. Critical success factors of a design startup business.Sustainability.10(9).
p.2981.
Krienbuehl, L., 2020. How Innosuisse is Supporting Entrepreneurs to Launch and Grow their
Startup Business.CHIMIA International Journal for Chemistry.74(10). pp.758-760.
Kuznetsova, Y., 2020. MARKET ANALYSIS INSTRUMENTS IN THE DEVELOPMENT OF
THE STARTUP MARKETING STRATEGY.
Mudambi, R. and Puck, J., 2016. A global value chain analysis of the ‘regional
strategy’perspective. Journal of Management Studies. 53(6) pp.1076-1093.
Ojasalo, J. and Ojasalo, K., 2018. Service logic business model canvas. Journal of research in
marketing and entrepreneurship.
Perera, R., 2020. Understanding Porter’s Five Forces Analysis. Nerdynaut.
Tiusanen, R., 2017. Qualitative risk analysis. Handbook of Safety Principles. pp.463-492.
Ungureanu, M., Pop, N. and Ungureanu, N., 2016. Innovation and technology transfer for
business development. Procedia Engineering.149 pp.495-500.
Weaver, C. and Nelson, S.C., 2016. Organizational culture. In The Oxford handbook of
international organizations.
Online
FOOD BUSINESS REGISTRATION, UK 2020. [Online] Available Through
<https://www.gov.uk/food-business-registration>
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