Enterprise and Entrepreneurship Report: Fruit Juice Company Analysis

This report provides a comprehensive analysis of a fruit juice company, examining its business model, target customers, and market position. It delves into the company's overview, products, and services, followed by an exploration of its target market using the STP model. The report assesses the c...Read More

Enterprise and
entrepreneurship
Table of Contents
INTRODUCTION.................................................................................................................................3

MAIN BODY........................................................................................................................................3
Overview about the Company and its Products & Services...............................................................3
Target Customers...............................................................................................................................3
Porter's Five Forces...............................................................................................................................4
Skills Analysis...................................................................................................................................6
Profit & loss and Cash flow Statements.............................................................................................6
Sources of Funds...............................................................................................................................8
Cost Structure....................................................................................................................................8
Organization type and Management Information System..................................................................9
Vision Statement of the Company.....................................................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11
Books & Journal:.............................................................................................................................11

INTRODUCTION
Entrepreneurship and enterprise are interlinked with each other as they both help in
achieving of goals and objectives. (Melese, 2018). In this competitive era, it is important to
focus on entrepreneurship so that enterprises are able to carry out their activities.
Entrepreneurship is defined as a process in which new product or things are introduced
business. Fruit juice is being enterprise which has been undertaken in this report. This
company mostly deals in drink and beverages products which are of high quality. This report
comprises of overview about the company, STP model, Porter Five Forces, skills analysis,
financial statements, management information system and vision statement.
MAIN BODY
Overview about the Company and its Products & Services
Fruit Juice, drink and Beverages Company located in United Kingdom. They are
famous audio delivering of healthy products and quality of services. There are also planning
to open new branch within their home country to expand their business activities. Moreover
they also produce new innovative products and sources within their business every year to
deal with competition in market (Squicciarini, 2017).
They have large number of products and services which are delivered by them in most
effective way so that needs and demands of consumers are fulfilled at all aspects. Main Idea
behind this launch of firm was to produce healthy drinks and beverages from fruits so that
people remain fit and healthy within society and community.
Target Customers
Target customers are those who have potential to actually purchase the product and
service. In context of selected organisation, the target market will be determined by using
STP model which is further explained below-

STP Approach-
STP marketing model is a type of an approach which is used by enterprise to
understand and examine the market situation so that different meeting is done appropriately
(Bell, 2016). It is a time consuming process because deep level of knowledge and
information is required to execute this model in correct way. It comprises of three
components which are explained as follows-
Segmentation-
It is the first element of this model in which dividing of market is done on the basis of
different variables like geographic demographic psychographic and many more. So in context
of selected enterprise they a segment share market on basis of psychographic variable.
Targeting-
It is another component in which it refers to approaching of a targeted customer in
proper manner. Targeting potential market as well as customer is necessary so that decisions
are made accordingly. So, fruit juice target people who like to eat it outside in restaurants,
cafes etc.( Pekerşen, 2020).
Positioning-
In this component of STP, it refers to increasing image of a company in mind-set of a
customer. In context of chosen company, they have positioned themselves as an affordable
brand within market.
Porter's Five Forces
It is defined as approach in which it shows about five forces which can impacts the
overall business structure. So it includes different types of Forces which are described as
follows-

Bargaining power of suppliers- Suppliers are important in business as they approach
for buying power to earn more profit. In case of selected organisation bargaining power of
supplier is moderate.
Bargaining power of buyers- In market, buyers also look for buying power with
purpose of achieving better quality products at affordable prices. In reference of chosen firm,
buyers bargaining power is low because quality of products is high (Ulkhaq, 2018).
Threat of substitutions- In this substitute refers to replacement of an existing product
in case of fruit juice, they also have secured software products but at low scale as because of
providing add ons options.
Competition in the industry- In this industry of service sector competition is
relatively high, it is important for selected corporation to improve their marketing strategies.
It is duty of a manager to make sure that competition in the industry is being determined
appropriately so that it competitive advantage is achieved (Steidle, 2016).
Threats of New Entries- It is another factor of Porter Five Forces Model in which it
depicts about entry of new companies in the same field of existing. It is essential to be aware
about new entry so that effective decisions are being made and planning is done accordingly.
In food and service sector threat of new entrants is relatively high because customers often
searches for alternative options and due to small retailers it might negatively impact on sales
and profit ratio of chosen entity.
Therefore about discuss two paragraph shows that 8 scanning business environment is
necessary so that forces that shape businesses are being determined properly.

Skills Analysis
Skills knowledge and expertise is essential to be determined so that they are used at
all aspects of business. In relation of chosen firm, they have high skilled employees and staff
members who deliver positive output to business. Furthermore owner of this company also
has a deep understanding of market. For example they have a good team management skills
and critical thinking skills which are used by them to make proper decisions within business
organisation (Zhang, 2019).
Profit & loss and Cash flow Statements
Break even analysis
BEP (In units) = Fixed cost / contribution per unit
First year
= 50000 / 4
= 12500 units
BEP in Pound= Fixed cost / PV ratio
= 50000 / 80%
= 62500
Second year
BEP in units
= 140000 / 7.83
= 17880 units
BEP in Pound
=140000 / 67.92%
= 206125
Calculation of contribution:
Formula = Sales – variable cost / total units
First year:
= 100000 – 20000 / 20000
= 4

Second year:
= 346000 - 111000 / 30000
= 7.83
Calculation of PV ratio:
Formula = Contribution / sales *100
First year:
= (100000-20000) / 100000 * 100
= 80000 / 100000 * 100
= 80%
Second year
= (346000 – 111000) / 346000 * 100
= 235000 / 346000 * 100
= 67.92%
Cash flow analysis:
Particulars 2020 2021
Receipts
Sales 35000 150000
Online bookings 25000 95000
Advances from clients 20000 51000
Further developments 20000 50000
Total receipts 100000 346000
Payments
Salaries to staff 10000 55000
Advertisement 5000 28000
Rent of building 5000 28000
Machines 20000 60000
Cost of material 30000 80000

Total payments 70000 251000
Cash at the end 30000 95000
Sources of Funds
Company is working on their new business plan and in which they will produce multi
flavoured fruit juice with additional options. So, to successfully achieve this business plan
huge amount of capital in fund and which is generated through different sources that are
mentioned below-
Business Loan - It is most common type of sources of fund which is widely used by
organisations. In this fruit juice take some amount of fund from banks and corporate sectors.
In this business loan interest is being charged by money givers and it is to be repaid within a
specific period of time by fruit juice (Saputra, 2020).
Assets Finance- It is another source of fund in which assets are used by many
businesses to generate capital for their business and operations. So in relation of selected
company with the help of this source they are able to purchase high advance tools such as
robot workers for their service (Zaki, 2017).
Cost Structure
Particulars 2020 2021
Variable costs
Salaries to staff 10000 55000
Advertisement 5000 28000
Rent of building 5000 28000
Fixed costs
Machines 20000 60000
Cost of material 30000 80000
Total cost 70000 251000
Revenue stream:
Particulars 2020 2021
Sales 35000 150000

Online orders 25000 95000
Advances from clients 20000 51000
Further developments 20000 50000
Total revenues 100000 346000
Organization type and Management Information System
Fruit juice company category of hospitality service industry and provides wide
numbers of products such as drinks beverages mock tails etc. (Panigrahi, 2018). To manage
their business activities, their uses management information system on the basis of which it
is easier for them to allocate every activity in a systematic manner and keep records of every
information.
Vision Statement of the Company
Main vision of a company is to global leader and provides better quality of products
to the targeted customers so that everyone remains fit and healthy. This vision statement of an
enterprise is being followed by them at larger scale.
Therefore, it has been stated that it is necessary to understanding management
information system and carry out vision of a business continuously so that goals are achieved
in appropriate way. Different sources of funds are to be used in efficient manner (Faccia,
2019).

CONCLUSION
After brief analysis of above report, it has been stated that it is important to have a
proper knowledge about both entrepreneurship as well as enterprise so that decision making
is done properly within market place. So, discussions have been made about STP marketing
model, Porter 5 forces, financial statements and skill analysis. Therefore, it has been
evaluated that it is necessary to conduct a proper market research so that information is
gained effectively.

REFERENCES
Books & Journal:
Small enterprise development as a strategy to promote entrepreneurship in Bahir Dar city,
Ethiopia.Journal of Entrepreneurship in Emerging Economies.
Entrepreneurship, innovation and enterprise dynamics.Small Business Economics,48(2),
pp.273-278.
. An enterprise opportunity for entrepreneurial students: Student enterprise development and
experience assessed through the student voice.Education+ Training.
. Professional satisfaction as a key factor in employee retention: A case of the service
sector.Journal of Tourism and Services,11(20), pp.1-27.
May. Formulating a marketing strategy of SME through a combination of 9Ps of marketing
mix and Porter's five forces: a case study. In Proceedings of 2018 International
Conference on Big Data Technologies (pp. 109-114).
. Analysis of the Automobile Industry in Times of Transition Using Porter’s Five Forces
Model.
Research on the Marketing Strategy of New Energy Vehicles in SL Company.American
Journal of Industrial and Business Management, 9(2), pp.306-314.
.Analysis Segmentation, Targeting, and Positioning (STP) Toward The Development of Halal
Hanwoo Beef in South Korea (Doctoral dissertation, Universitas Muhammadiyah
Surakarta).
The appropriateness of fraud triangle and diamond models in assesing the likelihood of
fraudulent financial statements-An empirical study on firms listed in the Egyptian
Stock Exchange.International Journal of Social Science and Economic Research,2(2),
pp.2403-2433.

. Financing of Higher Education Institutions: Access to Funds and Issues of Equity. In
Education Finance, Equality, and Equity (pp. 113-134). Springer, Cham.
. Understanding the Nature of Accounts Using Comprehensive Tools to Understand
Financial Statements.Financial Markets, Institutions and Risks,3(3), pp.18-27.