Human Capital Management & Entrepreneurship: Go Organic Plan MBA

This report presents a business plan for 'Go Organic,' a restaurant in Cameron Highlands, Malaysia, focusing on organic food. It covers the nature of the business, ownership structure, supplier information, and legal considerations, followed by a situational analysis using the PESTLE framework. The marketing strategy includes costing, pricing, sales projections, and break-even analysis. The operations and human resource strategy emphasizes alternative energy use, legal compliance, and comprehensive HR practices, including recruitment, selection, training, performance management, and motivation. The report identifies challenges such as supply-demand misalignment, price differences between conventional and organic food, and consumer trust issues, proposing mitigation strategies like sourcing from local suppliers, collaboration with stakeholders, and increasing consumer awareness. The conclusion highlights the business's potential, emphasizing sustainability through local sourcing and consumer education.

Managing human capital and entrepreneurship
Name of the Student
Name of the University
Author Note

MANAGING HUMAN CAPITAL AND
ENTREPRENEURSHIP

Introduction:
Malaysia is one of the countries where the favorite
past time for people is eating.
The marketing plan of opening restaurant in Malaysia
by conducting environmental analysis and business
environment of country.
Proposed strategies for managing human resources
such as selection, recruitment, motivation and
performance management have been demonstrated.

Nature of the business:
Rapid growth in organic food has generated interest
among consumers.
Increasing demand of organic food is raising health
concerns
Go Organic would be a medium sized restaurant
located in Cameron Highland, Malaysia.
Source ingredients locally at reasonable price because
Cameron Highland is a hub of vegetable farming
(Khan et al. 2017)

Structure of Ownership:
The restaurant will be established as a sole
proprietorship
 Jackson is the sole proprietor who has extensive
management experience of organization.
Accountants will be hired for handling and
controlling of financial issues.

Information about suppliers:
Suppliers preferably located in central area
of Cameron
Sourcing ingredients from local suppliers is
intended to decrease cost.

Legal considerations:
Malaysian government has introduced National
standard for organic foods and organic farming.
Compliance of Go Organic restaurant such
standard to carry out their operations seamlessly
Food act 1983 and Food regulations 1985 are
some of the laws to be complied with.

Situational analysis:Analysis of environment of organic food business of Malaysia is done
by applying the framework of PESTLE.
 Political factors- The marketing of organic product is
impacted by many political elements such as tax rate and excise
duty.
 Environment factors- The climate of Malaysia is quite
favorable to carry out organic food business at feasible price.
Business of organic restaurant would get a head start due to
tropical weather of Malaysia.
 Social factors- The consumption of organic food is
impacted by several cultural and social changes.
 Technological factors- Go Organic restaurant would
receive assistance in creating their online business due to intense
growth of technology in Malaysia.
 Legal factors- For initiating business in Malaysia, it is
essential for Go Organic to comply with all legal procedures and
food safety acts.
 Economical factors- The current economic development
would profoundly affect the business of organic restaurant.

Identification of potential customers-There are three
target groups for Go organic by way of segmentation
Geographical area- The main region that would be
served by Go organic is Cameron highland and
its neighborhood.
Business competitors- Go organic would e facing
competition from other restaurants operating in same
region.

Marketing strategy:
 Costing and pricing-
• Go Organic would adopt penetration pricing strategy.
• Cost of sourcing ingredients would be lower because
of sourcing ingredients from local farms.

Sales projection-

Break even analysis:
The amount of break even food and break
even beverages is increasing year on year.
However, the sales of beverages at break
even is lower than sale of food.

Revenue and profit
 There is consistent increase in projected
revenue of restaurant.
 Gross profit generated from business is
increasing
Increase in net profit is more in third year of
operation as against previous years.

Revenue and profit
 Direct labor cost forms the highest
proportion of the total cost incurred by
business.
Selling expenses on other hand has the
lowest proportion in total cost.

Operations and human resource strategy:
 Go Organic restaurant would make use of alternative energy and
decrease the footprint of carbon in the location.
 All the necessary license and legal requirements of business have
to be obtained by business.
 Human resource strategy would comprise of recruiting, selecting,
motivating, training and performance management of personnel’s.
 Recruitment-
 Selection-
 Training-
 Performance management-
 Motivation-

Analysis of challenge at different stage
in the venture life cycle:
 No alignment between increasing demand for organic food
and its supply.
There is difference in price between conventional and
organic food which is another problem.
Customers having trust issue with the organic
labeled product.

Mitigation of identified challenges:
Sourcing organic ingredients from local
suppliers who have their own vegetable
farming.
measures should be taken by organization to
collaborate with producers, government and
marketers by developing comprehensive
strategies.
Increasing awareness among consumers about
organic food using appropriate measures.

Conclusion:
Great opportunity exists for business of Go Organic.
Mitigation of challenges by taking appropriate
measures would help in meeting identified challenges.
 Business sustainability can be attained by
sourcing suppliers from local areas.
Go Organic efforts to increase consumer awareness
would help in serving its business.

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