LSC UoS BA Business: Entrepreneurship - Eat Organic Business Plan

This assignment is a comprehensive business plan for "Eat Organic," an organic food delivery service based in Richmond, UK. The plan includes a detailed executive summary, outlining the business's aims, mission, and vision. It provides a thorough market and industry analysis, including PESTLE and SWOT analyses, along with relevant industry statistics. The product description focuses on fresh, organic offerings, and the plan incorporates the Ansoff matrix to define market strategies. It also highlights the unique selling propositions (USPs) and conducts a competitor analysis using Porter's Five Forces model. The operational plan details goals, production processes, and milestone achievements. A risk and contingency plan is included, addressing potential challenges. The plan also outlines sales and marketing strategies, finance and funding plans, and the management team structure. The assignment concludes with a list of references, demonstrating a well-researched approach to entrepreneurship in the context of the COVID-19 pandemic and the growing demand for organic food.

ENTREPRENEURSHIP

EXECUTIVE SUMMARY
Business plan refers to a plan that includes various strategies and steps concerning the
business or the establishment of organization. While making business plan it is an important
point to be consider that the both internal as well as external environment including a competitor
analysis that is associated with the business should be considered and analysed so that the
chances for getting success with respect to entrepreneurship will be raised. This report will
discuss about the concept of business plan of. This report also includes the environment analysis
including internal, external and competitor. A well detailed description regarding product,
operational plan, risks, marketing and sales strategies, finance and management structure will
also be highlighted and discussed in this report.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
BUSINESS PLAN FOR EAT ORGANIC......................................................................................4
Business details............................................................................................................................4
Market/Industry analysis.............................................................................................................4
Product description......................................................................................................................7
USP..............................................................................................................................................8
Competitor analysis.....................................................................................................................9
Operation plan...........................................................................................................................10
Risk and contingency plan.........................................................................................................12
Sales and marketing strategy.....................................................................................................13
Finance and funding plan...........................................................................................................15
Management team......................................................................................................................17
REFERENCES..............................................................................................................................18

BUSINESS PLAN FOR EAT ORGANIC
Business details
Name: Eat Organic
Aim:
To reduce the use of chemicals and enable fresh organic food at door step of every
individual with no contact delivery service.
Mission:
To ensure healthy food availability which will be good for body as well as planet in terms
of raising health standard.
Vision:
Our main vision is to enable healthy and affordable food products among the reach of
every individual.
Location:
Main location of Eat Organic is Richmond TW9 1EW, UK along with digital dealing on
online platform.
Description:
Eat Organic is an enterprise of organic food deliveries with a digital concept in terms of
availing its services at digital platform. It will operate its business on 24*7 basis wherein
customers will be able to make purchase of its products at any time. Likewise, its digital services
will lead to have a meeting of Covid pandemic situation too.
Market/Industry analysis
As per the concept of industry analysis various internal and the external analysis regarding
the concerned industry is analysed and monitored. In order to make analysis of the industry
concerning the Eat Organic, industry analysis can be preforms with the implication of following
models:
PESTLE analysis:
Political:
It includes the various forces including political pressure, political situation, rules and
regulations and various other (Perera, 2017). With regard to Eat Organic political factor is
favourable but it will be affected due to Brexit and its impact in terms of imposition of restriction

between UK and EU. This may lead to affect Eat Organic in terms of restricting its business
operations.
Economic:
It includes the study of various economic factors in terms of economic situation, policies,
employment rate, and various other (Shtal and et.al., 2018). Eat Organic can favour this factor by
having a close monitoring with the moulding of activities as per requirement. Being a digital
dealer it will not be affected hardly with this factor.
Social:
It includes the pressure of society and the surrounding including taste and preference of
the customers (Dcosta, 2018). This factor will positively affect the Eat Organic because with the
outburst of covid pandemic demand of organic and fresh food is raised tremendously. And such
high demand of fresh and organic food and favourable taste and preference regarding organic
food will lead to have a good success of Eat Organic.
Technological:
This will also favour the Eat Organic because of technological inculcation and
involvement in the business operation of company. Technological innovation and digitalization
will enable the Eat Organic to meet the requirement of this force.
Legal:
It includes the laws and restriction prevailing in the country related with business
(Scammell, 2018). This may negatively affect the Eat Organic because along with covid
pandemic more strict restriction are imposed on business operation. This will affect the Eat
Organic in terms of affecting business.
Economic:
This factor also affects the company because it is all related with environmental and
ecological factor. However, with respect to Eat Organic this factor favours because its operation
are also in support of environmental factor and safeguarding with the production of healthy and
eco-friendly products.
SWOT analysis:
It is concerned with the internal analysis of the company and determining its capabilities
and weakness.
Strength:

It includes the analysis of the capabilities and favourable aspect concerning the company
(Gürel and Tat, 2017). Organic food, digital concept, no contact delivery in case of pandemic,
fresh and healthy products are counted as strength of Eat Organic.
Weakness:
These are the loopholes of the company (Vlados, 2019). New entrant, non-established
market, different products are all weakness of Eat Organic.
Opportunities:
The major opportunity that the Eat Organic can grab include the opportunities that arise
form Covid pandemic in terms of availing high demanded healthy and organic products with
digital presence.
Threat:
High competition, changing policies and environment, raising raw material prices are
threats that may affect Eat Organic.
Industry statistics:
Figure 1Sales of Organic food

Source: Sales revenue of organic food and drink in the United Kingdom from 1999 to 2019.,
2020
The above graph shows that the sales with respect to organic foods and drinks in UK is
raising from year to year which shows a positive sign towards the Eat Organic that it can
definitely grab success with respect to this industry and its products. As it is clearly understood
that the sales of was 605 million in 2000 which raised to 2298 in 2019. This means that the
customer attraction and demand of the organic and natural products are more and as a result the
industry shows favourable sign with respect to Eat Organic.
Product description
It is one of the major and important aspect with regard to any business and
entrepreneurship. This means that it is very essential that the product must match with the needs
and wants of the customers. With regard to Eat Organic the major products include the fresh and
organic products including fresh vegetables, garden fresh fruits, organic juices, healthy diet
supplement made up of high rich and organic fruits and vegetables and various other. This means
that the product range of Eat Organic is all related with availing best and healthy food to
customers especially during the time of covid pandemic where there is a high demand of such
organic and healthy products.
Ansoff matrix:
It refers to a matrix that is concerned with companies and various strategies by which they
can target the market and grab its customers. according to this matrix there are generally 4
strategies including market penetration in which existing products will be sold in existing
market. market development is the 2nd strategy which shows that the existing product will be sold
in the new market too (Loredana, 2017). However, product development strategy shows that the
new product will be sell in existing market while diversification strategy shows the selling of
new product in new market.

Figure 2Ansoff matrix
Source: Hanlon, A., 2021
With regard to Eat Organic it will initiate its business by market penetration in which its
existing organic products will be sold in the existing market so that business can establish and
run smoothly.
USP
Unique Selling Proportions with refers to the features and values that is being offered by
the company’s product and service. It will enable the company to be stand out of competitors.

Figure 3USP
Source: Unique Selling Proposition (USP): the customer’s perspective., 2021
With regard to Eat Organic the USP include its fresh and organic products which itself
enable the company to be stand out of other competitors in terms of delivery 100% natural food
products. It will also be able to grab the large proportion of customers because of its unique
features and quality. Being a provider of different range of organic and healthy products the
USP of Eat Organic would itself enable the company to beat competition and become the market
player.
Competitor analysis
This is also an important concept with respect to business and its plan. This is because
under this concept competitor and their moves along with strategies are analysed. This can be
performed through:
Porter’s five force model:

Bargaining power of buyers:
It refers to the power of customers in terms of reducing and affecting the prices of the
company along with affecting its business in terms of sales and revenue (Bruijl, 2018). With
respect to Eat Organic this factor will be of low intensity because of the range and 100%
originality of the product of company with no compromise in quality. This will enable the
company to have good customer share with attraction.
Bargaining power of supplier:
It refers to the supplier power in terms of affecting the company by raising prices
(FIRMAN and et.al., 2020). This power will be active when suppliers are low and have high
concentration. With respect to Eat Organic the intensity of this force is moderate because being
an entrepreneur its business operations are less depended on suppliers.
Threat of new entrant:
This power will not affect the Eat Organic because with respect to UK’s market the entry
restriction are high. Also with the covid pandemic it is very difficult to stay in the industry. This
means that on the establishment of Eat Organic this force will be of low effect because no
company can easily enter into this industry of UK.
Threat of substitutes:
This is all concerned with substitute products and their impact over the companies
(Pervan ands et.al., 2018). With respect to Eat Organic this force is again of moderate intensity
because of the high demand of organic product various other companies may also enter into this
sector and may raise the substitutes. However, with high quality Eat Organic can beat them
easily.
Competitive rivalry:
This is the major threat with respect to every company including Eat Organic too. This is
because like in other industries the level of market competition is also high with respect to this
company. Thus, with high intensity this factor may affect the company.
Operation plan
It refers to a detailed plan under which various operation of the company along with its
department are being determined and plan that will lead the company towards the direction of the

accomplishment of its objectives (Kärkkäinen, 2017). Here daily task concerning the business
are designed and planned which will lead to daily operation of the company.
Goals:
 The main goal of the Eat Organic is to enable fresh and organic products to its customers.
 Its goal also includes 24*7 online delivery and presence wherein its customers can make
purchase at any time digitally.
 It also targets a 75% sales percentage in the initial year of establishment as its goal.
Production process:
Here production process will be performed with the allocation of resources to different
department.
Production department:
Raise production of those products which are in demand by customers. It includes the
processing of various steps including organic farming, seeding and various other.
Purchase department:
Make order of purchase as per required and obtained data of customer demand.
Research and development:
Market data, market needs and wants, technologically driven data will enable the R&D to
process the information and produce required outcome. It also ensures digital operation of the
business.
Marketing:
With the access of social media and other digital platform they perform marketing
function of company’s product.
Human resource:
Make the actual execution of every planned activity. Bring and retain talent along with
managing motivation and employee’s satisfaction.
Finance:
Ensure adequate availability for the performance of daily operation of the business.
Milestone to be accomplished:
 Hire, and retain talented employees within the company.
 To raise the percentage of sales with a number of visitors over its digital platform.
Market penetration strategy:

Out of the 4 major strategies including penetration, market development, product
development and diversification strategies, Eat Organic will perform its business with market
penetration strategy wherein it will sell its existing products in the existing market so that it can
acquire the existing market.
Risk and contingency plan
Risk and its occurrence are very common with respect to every business specially with the
new ventures and entrepreneurs. It is to be noted that an early identification of risk along with its
analysis will enable the company to safeguard its business from the negative impact of risk
(Mishra and et.al., 2018). Risk and its assessment with regard to Eat Organic may include:
Area of risk Risk Degree Mitigation
Financial risk in terms
of need of funds for
establishment and
running of business.
Financial risk of high
investment and bad
debts.
High It can be mitigated by
involving more equity
then debts in the
capital structure of
company.
Covid risk in terms of
changing rules and
regulations and
imposition of
restriction.
Business may stop or
the employees will
become sick.
High Ensuring adequate
safety measures in
business operation
including gloves,
sanitizers, digital
orders and operation.
Brexit in terms of
trade restriction
between EU and UK.
Trade restrict and
stop.
High Can be mitigated by
moulding business
operation as per
regulations.
Marketing risk with
respect to non-
acceptance and
existence of
Major impact on sales
and revenue
generation.
Moderate It can be mitigated
with the taking of
latest marketing
strategies in the form

competitors. of social media and
digital marketing.
Technological risk
with the outdated and
old technology
Business efficiency
and performance may
decline
High Mitigated by adopting
latest and new
technology with
timely upgradation.
Sales and marketing strategy
Sales and marketing is one of the major task with respect to every company because it will
lead to the actual sales of the products of the company. Marketing apart from raising the sales of
company may also lead to raising and creation of brand awareness of the company’s products
among the customers.
Marketing mix:
It refers to a concept of marketing that includes various strategies and practices that will
lead to have a creation of brand awareness and its products. Here major tactics regarding the
marketing are included and considered. These may include:
Product:
It refers to the physical product which is being offered by the company to its customers.
It is the major component of marketing mix because if the product is of no worth then it will not
be able to target the customers (Ikechi, Chinenye and Chiyem, 2017). With respect to Eat
Organic the major product includes its organic range of fresh and 100% natural products
including fruits and vegetables along with organic juices.
Price:
It is the value which is charged by company from its customers regarding the products
(Thabit and Raewf, 2018). With respect to Eat Organic it will begin its pricing with penetration
in which low prices for the products will be charged in the initial period of time. Later it will
shift its pricing to value based in which prices will be charged as per value offered by the
product.
Place:
It refers to the place where the products of the company will be offered. It also includes
distribution channel by which product will reach to its customers. With respect to Eat Organic it

will perform its business operation over the digital platform with a wider approach and scope.
However, it will also operate its store in Richmond TW9 1EW, UK.
Promotion:
It refers to creation of brand awareness among the customers. It includes the use of social
media, or the other advertisement mode by which company’s products will be promoted. With
regard to Eat Organic it makes its promotion with the use of social media and other traditional as
well as digital advertisement mode by which it can raise awareness among customers regarding
its products.
Segmentation, Targeting and Positioning:
Like marketing mix it is also an important model and concept regarding marketing under
which entire market concerning the industry is segmented and then it will be targeted as per the
marketing needs.
Figure 4STP
Source: STP Marketing Model., 2018
Segmentation:

It includes the bifurcation and dividation of market. It is one of the major step concerning
with STP. This segmentation can be performed by considering the demographics, lifestyle,
beliefs and values, life stages and various other terms. Eat Organic will make segmentation on
t6eh basis of demographics and life stages.
Targeting:
After dividing the market the next step is to target those determined segment. This
targeting can be performed with the formulation of strategies as per the needs of the particular
segment. In case of Eat Organic it will mould its product as per the customer need of particular
targeted segment.
Positioning:
Here the company can determine its actual position in terms of customer acceptance and
market position. This is the stage wherein a company can analyse its own position in the target
market. in order to make and raise the position Eat Organic have to focus towards meeting the
needs and satisfaction level of its customers so that it can grab high position in market.
Finance and funding plan
Like other aspect finance is one of the major and important element and factor with regard
to every business that may lead to actual performance of company’s operation. Determination of
company’s financial needs and by making of expected and projected financial statements will
enable the company to frame its strategies accordingly that will lead to have generation of
expected income and minimization of losses and expenses (Lannoo and Thomadakis, 2019).
Cash flow analysis with expected cash inflows and outflows:
Cash flow Analysis
January February March April May June July
Cash at Start
of Month 6,000 10,000 12,000 11,000 12,500 13,000 8,500

Cash Coming In
Services (75%) 7,000 7,000 7,000 7,000 7,000 6,500 6,500
Cash Sales 2,500 4,000 7,000 10,000 12,000 10,000 13,000
Loans 9,000 0 0 0 0 0 0
Total Cash In 18,500 11,000 14,000 17,000 19,000 16,500 19,500
Cash Going Out
fixed Expenses 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Rent 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Salaries to
employees 3,500 3,500 3,500 3,500 3,500 3,500 3,500
Phone [phone]
Insurance 1,500 0 0 0 0 0 0
Advertising 150 180 200 150 160 140 120
Accounting 120 120 120 120 120 120 120
Miscellaneous 0 0 0 0 500 0 0
Loan payments 150 150 150 150 150 150 150
Total Cash
Out 11,955 10,485 10,505 10,455 10,965 10,445 10,425
Cash at End
of Month 6,545 515 3,495 6,545 8,035 6,055 9,075
Expected balance sheet at the end of year:
Balance sheet
Particular Amount Amount
Assets

Shop fitting 15000
bank 5000
cash 9000
debtors 11000
CL stock 9000
Total assets 49000
Liabilities
Creditors 11000
Capital 25000
Less: Drawing 5000
Add: net profit 18000 38000
Total liabilities and
equity 49000
Management team
Management is one of the important aspect with regard to every organization. It is an
important element that will lead to have actual operation and performance of business functions
(Hsieh and et.al., 2018). With regard to Eat Organic the entrepreneurial structure is of sole
proprietorship which is one of the major business form in which there is single owner who will
lead the entire enterprise and the organization. This means that the Eat Organic will be lead and
managed by a single owner who will own all the power concerning the business. However, the
business will be further divided into various departments including human resource, finance,
marketing, Information technology and training and development. In order to manage the work
of the entire organization various department will work in synchronization and co-ordination
with each other. Roles and responsibilities will also be assigned as per the need of the
department and its concerned work. This can be understood as the attracting and recruiting the
most suitable employees for the organization will be done by HR which will further be
transferred to training and development department in order to raise and enhance their skills.
Likewise, finance department will enable the finance among various departments and sections so
that the business operation will be operated with continuity. In the same manner marketing and
sales department will lead to the creation of brand awareness and lead to actual sale of the
company’s product. Similarly, the digital approach of the company will be managed by the IT
department.

Being a manager it would be counted under its responsibility that in order to manage the
entire team and the departments of the company manager must ensure co-ordination and
synchronization among different department. Likewise, maintenance of level of motivation along
with rising it is also counted under the work of a manager because it is the manager only who
will lead the entire organization towards the direction of its objectives by synchronizing the
individual efforts.
Thus, management and its managerial work will lead the company and the Eat Organic to
grab its objective in terms of enabling and supplying best organic products to its customers.

REFERENCES
Books and journals
Bruijl, G.H.T., 2018. The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
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com/project-planning/51754-components-of-a-pestle-analysis.
FIRMAN, and et.al., 2020. Re-conceptualization of Business Model for Marketing Nowadays:
Theory and Implications. The Journal of Asian Finance, Economics, and Business. 7(7).
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Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research. 10(51).
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Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Mishra, and et.al., 2018. To investigate the critical risk criteria of business continuity
management by using analytical hierarchy process. International Journal of
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Perera, R., 2017. The PESTLE analysis. Nerdynaut.
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firms’ profitability. International Journal of Financial Studies. 6(1). p.4.
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Shtal, and et.al., 2018. Methods of analysis of the external environment of business activities.
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Online references
Hanlon, A., 2021. The Ansoff Model. [Online.] Available through
<https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-
model/>

Sales revenue of organic food and drink in the United Kingdom from 1999 to 2019., 2020.
[Online.] Available through <https://www.statista.com/statistics/282379/organic-food-
and-drink-sales-in-the-united-kingdom-uk-since-1999/ >
STP Marketing Model., 2018. [Online.] Available through
<https://expertprogrammanagement.com/2019/11/stp-marketing-model/ >
Unique Selling Proposition (USP): the customer’s perspective., 2021. [Online.] Available
through < https://www.tractionwise.com/en/magazine/unique-selling-proposition-
customer/>

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