Fresh Fruit's Business Plan: Online Organic Food Delivery in the UK

This report presents a comprehensive business plan for "Fresh Fruit," a small-scale company in the UK retail sector aiming to deliver organic food products through an online platform. The plan includes an executive summary, company details, market analysis using the PESTLE model, a discussion of the company's legal status as a sole proprietorship, and an overview of its organizational and operational management, which utilizes a functional organizational structure and Total Quality Management (TQM). The report also analyzes the interrelation of key business components such as marketing, finance, human resources, and production. It emphasizes the company's commitment to providing high-quality, fresh organic products with home delivery services and 24/7 customer support. Furthermore, it addresses potential issues and risks associated with the business, offering a strategic approach to navigate the competitive environment and ensure sustainable growth and profitability in the post-COVID-19 market.

ENTERPRISE
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TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................3
MAIN BODY..................................................................................................................................3
Business plan...............................................................................................................................3
Analysis of the main components of business and the way they are inter-related to each other.6
Effective small business planning and provide justified reasoning and evidence/data to support
the projected performance and viability of your business plan...................................................8
Potential issues and risk associated with business that may impact on its success...................11
CONCLUSION............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Enterprise can be defined as institution that is engaged in selling of products and services
to customers so that their requirement is being fulfilled in effective way. Covid-19 is uncertain
pandemic situation that has adversely impacted on growth and operation of enterprise in external
environment. So, this report is based on one such case of company that direct hit because of
covid-19 and planned to make use of online platform with fresh business start up. Company has
planned to sell organic food range with an motivate to attract large segment of customers from
different parts of the world to be part of company (Morgan and et.al., 2019). Hence, the report
depicts crucial information pertaining to business strategy, operation, marketing, finance, legal
status and many more detail related to company. Along with that also explained about potential
issue that impacted on success of the organisation in competitive environment.
MAIN BODY
Business plan
Executive summary
Business plan is written document that describe in detail pertaining to the manner
in which business is being run, what all its objective, set of action and the manner in which it can
be monitored. This is business plan of Fresh fruit that has planned to delivered organic food
products through online platform to satisfy the wants of customers in effective manner. Business
plan of Fresh fruit lay out written roadmap pertaining to marketing, finance, operational and
other key functions being performed by organisation to grow and sustain its business for many
years (Olson and et.al., 2018). Therefore, the new business plan of the company that is planning
to enhance its operation on online platform can be defined in detailed as follows:
Company detail
Fresh fruit is small scale company operating in retail sector of United Kingdom in order
to delivered range of fresh fruit and vegetable so that they have necessary requirement in their
diet and healthy lifestyle. It is having 5-10 employees that are working for its growth and
expansion through putting their respective efforts in effective manner that has resulted company
in expanding its business in online platform (Vieira and et.al., 2019). Currently, the firm has
only online presence from where customers can easily make purchase as per their respective
requirement and be part of the organisation. Moreover, it is managed by single owner with an
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motivate to offered qualitative product at reasonable price to customers so that it can have good
profit margin and sales revenue. Hence, it has limited capital, human resources and equipment to
promote smooth operation of business in external environment for many years.
Market analysis
In 2020, after 12.6 % growth sales, Soil Association Certification's Organic Market
Report 2021 has reported that UK organic market will worth £2.79 billion. New and new
companies are entering into the market with an motivate to grap opportunity in effective manner.
Furthermore, the report represent that the overall market of organic food products has been
grown at highest rate in 15 years. Likewise, in 2020 more than £50m per week has been spent by
people living within United Kingdom on organic food as well as drink that has provided
opportunity to companies to cover large market share. On the basis of market analysis, it has
been identified that after covid-19, people are become more concerned about their health and
well being so offering organic food is best opportunity for company to expand and retained
market share in external environment (Ali and Anwar, 2021). It has also find out that people are
turning to organic products because of their assurance to transparency, integrity and quality
being offered by company which in result in improving health and well being. In addition to this,
people are more likely to prepare meal at home due to increase in number of disease across
worldwide. So, many of the individual have appreciated the incredible range of organic food
products being offered by enterprise on online platform. As it has provided them ease and
comfort in easily booking them as per their requirements, social media platform or online media
have stand-out growth of 36.2 percent. Thus, in another word, it can be stated that out of four,
almost one products is being purchased by customers through online platform in 2020.
Furthermore, in order to effective analysis the market condition of the business, PESTLE
Model can be applied as it helps in understanding external factor such as policies of government,
economic environment, social preferences, technology and legal factor that are impact on smooth
operation of business. PESTLE analysis of fresh fruit can be explained in detailed as follows:
Political factor: With impact of covid-19, government of United Kingdom have put restriction
in trade of goods and services from one individual to another with an motivate to protect people
living within the society. Such restriction has lead in increasing overall cost of the company and
created barriers in effective expansion of firm in external environment (Palmatier and Crecelius,
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2019). But company through having online platform is able to attract range of customers from
across United Kingdom to earn high profitability and market share.
Economic condition: The second element that is impacting on smooth operation of firm is
economic condition of the country. Likewise with covid-19, the overall GDP, employment,
inflation rate and cost of raw material has been increased which results in decreasing overall
sales of the organisation. Fresh fruit in order to cope with economic condition has planned to
delivered range of organic food product at reasonable price to customers. Hence, it has lead in
attracting million of customers to have products and meet their desired beyond their expectancy
level.
Social factor: With increase in number of companies within the external environment, customers
have get more choice or alternative options to satisfied their wants in effective manner. Likewise,
with increase in number of diseases across worldwide people wants to have healthier, hygiene
and organic food products to meet their respective desire (Radović-Marković, Salamzadeh and
Vujičić, 2019). Therefore, the Fresh fruit by understanding the actual needs of the customers is
able to enhance its performance and profitability.
Technology factor: Furthermore, it can be stated that there are numerous development and
advancement in technology that has directly impacted on smooth operation of business. For
examples: people are preferring more online services or home delivered services as compared to
physical go to store to make purchase of product. So, Fresh fruit organisation through adapting to
digital technology has tried to influence maximum number of customers to purchase organic
food from its stores. Thus, it leads in increasing overall sales volume and market share of
company across United Kingdom in limited cost and time frame.
Legal factor: Another factor that affects company is legal laws, regulation made by government
for benefits of the society so that no undue harm can be caused to the people by the organisation.
Health and safety law, employment law and trade and tariff law, environment law, privacy and
security law are being made by the government (Cogoljevic, Tosovic-Stevanovic and Nikitovic,
2019). Fresh fruit has abided to all regulation while starting and running its business
successfully.
Environmental factor: There are many companies that are throwing large amount of garbage
and wastage in rivers and other area where people live that has caused damage to environment as
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well as negative impact on health and well being of individual. Fresh fruit has launched with an
motivate to make optimum use of available resources so that minimum wastage can be throw out
and people can stay a health life ahead. Company have also trained and guided employees to
avoiding throwing garbage anywhere in order to make healthy environment and satisfied the
customers beyond their expectancy level.
Legal status: The fresh fruit is having legal status as sole proprietorship in which the individual
is solely responsible for taking all the decision pertaining to the business. It only enjoys all the
profit and bear risk associated with the organisation (Brenner, 2018). Thus fresh fruit have
limited capital to start and run its business in external environment.
Organisation and operational management: It can be stated that company have followed
function organisation structure in which each and every function is performed by specific
department for achievement of end goals. Likewise, marketing department is responsible for
promoting products and services, finance for arrange finance and making investment while
operational is responsible for manufacturing of products and services that should be delivered to
customers as per their expectancy level. All these has helped in systematic organisation of task
that need to be performed by specific individual in the firm so that end objectives are being
achieved (Kasemsap, 2018). On the other hand, for operational management, the company has
make use of TQM in order to delivered maximum value to end users. It has focuses on
improving the quality of products and services by making use of more fresh material, not storing
them for 2-3 days and many more. All these have helped in making best use of available stock
and delivery qualitative products at reasonable price to customers.
Analysis of the main components of business and the way they are inter-related to each
other
From the above analysis, it can be stated that finance, human resources marketing, sales,
production, research and development are main components of business that are inter related to
each others. The way they are interrelated to each other in fresh fruit organisation can be
explained in detailed as follows:
Marketing with finance: The marketing department provide detailed to finance department
about total expense that it has to make in order to promote product and services and attract
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customers. On the basis of that finance manager arrange sufficient amount of capital that could
be used to meet with the expense for its smooth operation (Mehta and Shah, 2019).
Marketing with human resources: Furthermore, marketing is related to human resources as to
promote products; marketing department required highly dedicated team. So it suggest the
Human resources to recruit and select candidate that have capabilities to sell products of
company and enhance its overall profit margin.
Marketing with research and development and production: Fresh fruit production, research
and development department is related with marketing because on the basis of research conduct
related to existing preference of customers. Company manufacture the products or get idea of
introducing organic products which has been promoted by marketing department (Mehta and
Shah, 2019). Hence, the marketing department inter related with production to know key unique
feature of products that could be used to influence the decision making of customers.
Services or products: The Company deals in organic products staring from fresh fruits and
vegetable of different type that are required by people to eat and effectively live their lifestyle.
The quality of products is quite goods as only fresh products are offered to customers with
proper packaging to make it attractive and useful for them. Furthermore, the firm has decided to
provide home delivery services to customers so individual can easily book products through
online platform and meet their respective requirements (Le, Ling and Yau, 2018). Along with
that it have provided 24*7 hours services to customers, thus they are free to order as per their
respective wants. Company has also provided customers care services so, in case they have any
type of issue then it would be easily resolved in effective manner.
Marketing and sales: The marketing and sales department of Fruit fresh is highly dedicated to
promote the products and services of company to end customers so that they are motivated to
select it rather than other organisation. Such as marketing department make use of social media
platform that is instragram, You tube, Facebook and other platform to generate awareness within
the society. This has helped in improving the brand image and motivating new customers to be
part of organisation (Bejtkovský, Rózsa and Mulyaningsih, 2018). Apart from this, company has
also make use of personalised email to inform people about the existing products and offer so
that they can take right decision to purchase. This has helped in improving the sales volume of
company in desired manner. Moreover, it has lay efforts on taking feedback of customers to
know what issue they are facing thus alternative method are being planned to resolved them.
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Effective small business planning and provide justified reasoning and evidence/data to
support the projected performance and viability of your business plan
Funding request
Each and every enterprise requires certain amount of capital in order to smoothly operate
its business in external environment. Such as it require fund to meet expense that is office rent,
salaries to employees, taxes, purchase of raw material and many more. Company can make use
of different sources to raise sufficient amount of capital for the organisation, likewise, personal
fund, loan from bank, venture capitalist and many more (Contractor and et.al., 2020). Among all
these, the sources that has been planned by organisation to make use in order to raise fund by
fresh fruits that can be explained in detailed as follows:
Bank loan: Company may take loan from bank in order to get sufficient amount of capital as it
is one of easiest and simplest way to gathered money. At the same time, firm can easily repay the
amount in small instalment to the bank by withdrawing sufficient amount of money from profit
only.
Personal fund: Moreover, it can be stated that raising fund through personal saving is also best
method of getting sufficient fund as each and every individual have sufficient amount of saving.
That could be used to meet some of the expense and promote smooth operation of enterprise in
external environment (Ghoshal, 2019). The benefits is that it does not have to pay any type of
interest while negative is that it is limited in amount.
Financial projections
Financial projection describe the total amount of finance that will be required by
company to incurred all its expense and earn profit margin. Cash flow, capital investment,
costing and profit and sales during 3 years are various elements that represent financial
projection of the organisation. Such as:
Cash flow forecast
Janua
ry
Feb Mar
ch
Apri
l
May June July Augus
t
Sept Octo
ber
Novem
ber
Decem
ber
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Operating
cash
budgeting
50000 35000 2600
0
2400
0
1900
0
32000 2200
0
45000 37000 2900
0
40000 17000
Source of
new cash
Cash sales 25000 20000 1300
0
8000 1
5000
13000 1900
0
20000 18000 9000 14000 15000
AR collection 2000 1100 3500 2000 1500 2500 1900 3000 4000 4000 8000 9000
Customers
deposit
3000 4000 1300 800 1200 1000 8500 5000 1500 2400 9000 1400
Bank
financing
- - - - - 2000 - - - 4000 - 4000
Shareholder
investment
- - 1000 - 5000 - 10000 -- - - -
Others - - - - - 500 - - - 700 - -
Total source
of cash
30000 25100 1780
0
1080
0
2270
0
18500 2940
0
38000 23500 1940
0
31000 29400
Uses of cash
Payroll 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Taxes 300 400
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Inventory
purchase
1000 500 1200 1300 400 300 1000 1400 600 700 1300 1500
Loan payment 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200
Others - - 400 - - - - - 200 - - -
Total uses of
cash
10500 10100 1040
0
1050
0
9600 9500 1020
0
10600 9800 9900 10500 10700
Cash inflow 19500 15000 7400 300 1310
0
9000 1920
0
27400 13700 9500 20500 18700
Capital investments
Capital investments can be defined as expenditure of money that company is making for
its long term growth. Fresh fruit have make investment in machinery that is costing around
10000 and furniture and fixture – 3000 so that it has necessary resources to promote its smooth
operation. These capital investment acts long term assets of the organisation that helps it in
earning more profit margin and delivering range of services to customers (Nam . and Bao Tram,
2021). Company is more planning to invest in long term assets to grow and sustain business for
many years.
Costing
EXPENSES AMOUNT
Salary to staff 6000
Rent 2000
Taxes 1200
Electricity bill 1400
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Machinery and equipment 1500
Miscellaneous 900
Total 12000
Projected sales and profits over a 3-year period
YEARS
1 2 3
Projected Profit 95000 125000 155000
Projected Sales 200000 280000 340000
Potential issues and risk associated with business that may impact on its success
There are certain risk or issue associated with the business such as legal laws that are
made by government, increase in competition level and changes that are happening in external
environment. Likewise, there are lot many laws that have to be followed by company to avoid
itself from being penalised or legal fines, hence it has to follow employment law, privacy law
and security and safety law for well being of all. Along with that, with increase in demand of
organic products, there are many small companies that have started their operation which lead in
threat to smooth operation of business. As these firm are coming up with new and innovative
ideas to meet the expectancy of the customers. Hence, company has to face tough competition in
order to survive in market and make customers happy and satisfied (Sharma and et.al., 2020).
Moreover, it has been identified that demand of customers, technology and economy condition
are every changing in nature that have direct impact on operation of firm. So, Fresh fruit has
limited amount of capital as well as other resources to cope with sudden changes those results in
creating challenge in effective operation of company and achievement of end goals. Therefore
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the manager of company should plan alternative strategy that could be used to overcome issue or
risk for benefits of organisation.
CONCLUSION
From the above report it can be concluded that business plan helps in planning in advance
pertaining to the strategy that could be used by firm to stay ahead in competition. It contributed
in planning total resource required, specific risk associated with business and strategy that could
be used to overcome them. Therefore, in short it helps in planning the way business can
successfully run for achievement of set objectives. At last it can be summarised that company
through changing its business strategy as per external environment situation can easily position
itself in mind and hearts of the customers.
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REFERENCES
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Mehta, K. and Shah, V., 2019. Global business: Virtual workplaces and
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