BAA613: Startup Organisational Plan for Innovation - The Naturale

This report details an organisational plan for The Naturale, a startup focused on natural cosmetics, specifically a new organic liquid foundation. It covers a situational analysis of the competitive cosmetics market, highlighting the increasing demand for organic products. The plan outlines the company's mission, vision, and objectives, including revenue growth and reduced employee turnover. It also describes the organisational structure, emphasizing team dynamics, diversity, and the importance of leadership in fostering innovation and collaboration. Furthermore, the report discusses company planning strategies, including market research, product development, manufacturing, and marketing, as well as financial and personnel plans for organising innovation research and workshop ideas. The plan aims to guide The Naturale in structuring and running itself as a creative, innovative, and entrepreneurial startup.

Running head: ORGANISATIONAL PLAN
ORGANISATIONAL PLAN
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction....................................................................................................................2
Situational analysis.........................................................................................................2
Organisational structure (The team)...............................................................................4
Company Planning.........................................................................................................7
Financial Plans...............................................................................................................9
Personnel Plans for Organising for Innovation Research............................................11
Workshop Ideas for Innovation....................................................................................14
Conclusions..................................................................................................................16
References....................................................................................................................17

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Introduction
The aim of this report is to discuss the organisational plan of a new company recently
starting to expanding its business in the Australian region. The name of the company is The
Naturale which mainly focuses upon the production of the range of products mainly
foundation containing 100% natural contents. The company is obsessed with finding the
absolute best ingredients apart from the artificial, toxic and synthetic ingredients usually used
for the manufacturing of cosmetics of the internationally renowned brands. This company
mainly manufactures the product line from the plant-based and free from synthetic or
chemical ingredients. The company will be launching a new range of organic liquid
foundation. The core strategy of this product innovation to apply those customers who want
to replace their chemical foundation with a high quality organic foundation of all types of
skin. The product will be applying the new base of customers mainly segment of 18 to 35
years of age. This company has responsibly sourced organic plant and plant parts that the
customers will prefer for their glowing, hydrated, firm and youthful-looking skin.
This report will be analysing situational analysis, organisational structure or the
strategies of the team, company planning, financial plan, personal plan for innovation
research and workshop ideas for innovation.
Situational analysis
The cosmetics market of the world is growing sharply as the demand for different
types of cosmetics is increasing. In this situation. The demand is being made by different
local as well as international brands making the market high concentrated and competitive.
There are various sections of cosmetic launched by different brands that have different
segments of customers meeting different demands. In this market situation, laughing a new

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product range will be difficult as the competition in the market is high. However, the
company will be able to higher the sales because the preference for organic or natural
cosmetic products is sharply increasing. This is the reason why the company of allows the
perfect plan of launching a 1000 unit of organic liquid foundation; then it will be acceptable
by the new base of customers who want to replace their chemical-based foundations with the
organic ones.
The main target customers will be from 18 to 35 years of age needing high quality
foundations for the professional make up. For this demography, the company will have a new
production team, but the marketing will be done by the existing marketing team. This is due
to the fact that the existing customer base is in good touch with the active customer support
team. The marketing team will be taking care of online and offline promotional initiatives.
On the other hand, a new manufacturing unit will be developed when one part of the total
production unit will be working.
Mission: the company has signed for Compact for Safe Cosmetics pledge that aims
to energise the aware and conscious customers to savour the luxury organisation foundation
as their daily wellness rituals.
Vision: the company formulates natural and exceptional ingredients, with a softer impact
upon the planet hence aims to expand among the professional make-up artists to incorporate
usage of organic products.
The objective of the company will be achieving 15% growth in the revenues and
earnings with the next 12 months. The monthly sales will be increased by ten present in the
course of 12 months. The human resources of the firm will be reduced by 20% employee
turnover in these next 12 months.

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Organisational structure (The team)
The company has a string team which are united with their passion, right mixture of
hard work and innovative ideas to accomplish just about anything. As mentioned before, this
project will be taking place for 12 months; therefore, developing an impressive impact upon
the particular customer base. In order to organising innovation, a perfect team spirit, clear
vision, unified goals and perfect leadership are needed. All of these are effective to develop
the team to be integrated and collaborative that leads the employees to be motivated at their
best.
The team structure comes under the entire organisational structure, which is mainly
led by the CEO of the company and the different departmental heads. Under them, the teams
work under the project managers. The company will have new production team, but the
marketing will be done by the existing marketing team which will be led by the Vice
president of Sales and marketing, and the production team will have Vice president of
manufacturing as their leader.
Figure 1. Team structure
CEO
Vice president of
Sales and
makrteing
traditional and
online marketing
team
sales team
Vice president of
Manufacturing
project manager
for new product

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(Source: created by author)
The main focus will be on the manufacturing team where the employees will be
coming from different customer and knowledge background. This team will be responsible
for developing the production planning, technical or industrial machine handling, research
and development, quality assurance and maintenance. The leadership capabilities of the
managers help to maintain collaboration among the employees and the team spirit. There are
some very important factors that manipulate the team members to work collaboratively and
with motivation. The presence of features like jealousy, withholding data, backstabbing,
conflicts, poor decision making and internal competition affect the teams in a negative way.
In order to develop a perfect and highly motivated team, the leadership capabilities of
the team leaders and management are necessary (Hunt, Layton and Prince 2015). This is due
to the fact that in the case of Naturale, the employees do not have much knowledge about the
internal environment of the company as this is a start-up company. The focus upon the
diversity of culture and other factors like age, class and gender are to be maintained by the
management so that there is no scope for the conflicts to prevent the start-up from growing
(Van Knippenberg and Mell 2016). The company firstly needs to the employee such a band
of managers who already have working experience with a similar company so that the
knowledge can flow from the high intensity to low. These managers will be helping the
ground level employees in the research and development process, handing off the industrial
machinery and in the marketing process.
In the dynamic team, the employees are to be self-aware so that this leads to better
team performance. In this regard, the decision quality, coordination and conflict management
are the steps which they must follow (Picken 2017). These are dependant upon the soft skills

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of the mangers like empathy, personality, values, beliefs, understanding of the characters,
effective communication style, in-depth knowledge about the tasks, and motivating others. In
order to maintain a positive organisational culture, the management needs to take the most
important steps so that the discrimination issues do not grow in the workplace.
The diversity in the teams can have efficiency in growing the products and companies
in a positive way. The diversity will help in selecting effective talents, experiences, skills
which benefit the organisation and the work performance. This is effective for the team
dynamics because these crossover skills increase assistance among the team members where
the appropriate skills of the people fit with the roles of their positions (Devece, Peris-Ortiz
and Rueda-Armengot 2016). Diversity leads to experience variety of skills that can be
beneficial when coming into knowledge sharing. While the company is targeting one
particular segment of the Australian market, therefore perfect understanding of the customer
demand will be diverse. Therefore only a diverse team will understand their demands along
with their feedback effectively (Lee, Swink and Pandejpong 2017).
Diversity in the teams leads to the creation of innovation. This is due to the fact that
the employees in the team having different cultural background will be working together.
They have their own different working style, creative concepts and ideas. That offers
suggestions on one another, making the workplace more enjoying and leering. In this respect,
the team members will be having all the necessary experience for execution (Andrejczuk et
al. 2019). Therefore they develop a great boding with another by knowing the strengths and
weaknesses of all.
Diversity in the team grows talent pool that leads the company to become innovative
in every aspect. The team will be innovative in manufacturing as well as in the marketing
process (Usher and Barak 2019). In this regard, the management can motivate all of the

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employees to contribute their ideas in the decision making which manipulate all the
incorporate out of the box ideas. Thus the team members feel themselves to be important in
the growth of the organisation and retention will be increasing as the objective of this project.
This positive working culture will be manipulating the employees to accept backgrounds of
the others and thus promote equality by eliminating any type of discrimination issues (Wang,
Kim and Lee 2016). Finally, the improvement of employee performance is a necessity in this
project of launching a new product on behalf of The Naturale. Inclusivity in the workplace
makes the situation more comfortable for the employees; therefore, competition is promoted,
but it does not affect the team in a negative way.
Company Planning
Company planning for this product would be based on its objective and vision. There
would be a set mission for the product, but the consumers would be presented with a mantra.
This mantra would be of three to four words and would represent the product motif. The
methods and strategies used for the organic foundation would be clearly communicated in
each level of the workforce so that they could work for a common goal. As opined by Mu et
al. (2017), the teamwork would play a pivotal role in project success. Therefore, the authority
must take care of the team formation and the leader selection in this product development.
First, the company would invest its attention in market research. The Naturale already
have their products in the markets of Australia. Now the company have to do research on the
demand for the new product it is planning. Next, are the product designing and development.
The company have to select its suppliers carefully. The market of the organic cosmetic range
is not saturated, and the availability of suppliers for the product elements are low in number
(Cooper 2019). Suppliers have high bargaining power in the market. Supplier selection
should be made through good negotiation. The product would be designed to stand different

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in the market. The shades and the elements used in this product would be unique in its
quality.
Developing a product and making it successful in the market requires expert control
on each and every step. Manufacturing of the product would be done by the own units of
Naturale. Therefore, the target would be to manufacture the best quality product at minimum
cost (Gopalakrishnan et al. 2015). The manufacturing team of the product would have the
skills in creating a quality product. The company could also target to have some modern
equipment in the manufacturing unit so that time and cost could be saved.
Promotions and advertising would be the priority for the new foundation range. There
is some organic foundation available in the market, but these are not available in as many
shades as the Naturale would offer. This would be the USP of the product, and the marketing
and sales team would focus on this aspect. They need to communicate with the customers
visiting the stores and introduce the product. Online promotions would mainly be done
through the company website and social media platforms (La Rocca et al. 2016). Other than
that pamphlets and billboards advertising are also effective media.
Preparing the budget for the whole process would be done before the product
manufacturing. The budget would be done on the basis of market research and manufacturing
objectives. The company would first have the product manufacturing costs set and later it
could include other units (Knudsen and Schleimer 2015). The objective of the company is to
have 15% growth in the initial year. This target audiences are young women, and there needs
to be some feedback collecting plan. Feedbacks would be collected from the target consumers
in two months gap. The process of manufacturing and promotion need to be in control
throughout. The evaluation process would be based on company revenue earning. Another
yardstick of evaluation would be consumer satisfaction. Evaluation and control would enable

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the management and the authority to finalise their attempt of the new product. They could
modify their marketing and other plans according to the feedback and evaluation results.
Financial Plans
The financial planning would cover all the aspects of product manufacturing,
distribution channel and marketing. The financial planning for the launching of a new liquid
foundation for the company Naturale needs to be done efficiently. The financial planning for
this project would be built upon the product designing, promotion and distribution. The
marketing research has been done to understand the condition of market, competitors and
required resources for this new project (Luzzini et al. 2015). The demand for the product in
the market is quite high as the target segment is interested in using organic products. The
objective of the product is to elevate the market shares of this company and increase the
customer base in the process.
Identifying the business environment and type of resources required for the product
launch is important to plan the finances carefully. This is a natural cosmetic product would be
built on the seaweeds base and using the natural colours for different shades. A new unit
would be assigned to this project for manufacturing and research. The marketing would be
done by the same marketing unit of the company. At the first phase, 1000 units of the product
would be launched. The evaluation and planning suggestion is for the time span of six
months.
Resources needed for this project are the ingredients, equipment, materials, supply
chain and the marketing resources. The tentative cost of the budget of the product
manufacturing and marketing for six months is given in the table below-
Cost heads Costs
Marketing research $280

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Product Manufacturing
Designing $200
Materials sourcing $3000
Labour cost $15000
Equipment $2500
Manufacturing costs $3000(1000 unit*$3 for the first phase)
Distribution cost $1000
Promotion
Product launch $120
Advertising $3400
Promotional events $560
Total $29,060
Table 1: tentative budget for the new product
(Source: Created by the author)
The costs of this project would be mainly distributed in four heads- product
manufacturing, marketing research, distribution and promotion. Promotion would be done
through various channels like TV and radio commercials, in-store promotions through
employees, online advertising through YouTube and popular websites, social media
promotions (Cui and Wu 2017).
The budget set has some risks considering the changing market demands and trends.
There could be some point where the budget proportions would be changed after evaluations.
According to Bouncken et al. (2018), there could be some degree of uncertainty as it is set
according to future forecasts. Reducing the risk is possible with effective market research and

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regular evaluation. Other than that, the company has to be ready for accepting any such minor
or major changes in the budget numbers (Lawson, Krause and Potter 2015). Other than that
the financial atmosphere of the destination market Australia could pose challenges in the set
budget.
Personnel Plans for Organising for Innovation Research
Research on the market and situational condition of the market is an integral part of
any innovative measure. The Naturale is the company that aims at building a strong consumer
base and their demand satisfaction. Launching a new product is a task that has many risks and
contexts (Lee, Kim and Joshi 2017). Therefore, it is important to do the research of the
market, recruit the skilful and motivated employees and distributing the responsibilities. The
innovation research is to be done on the market and the product. The demand and supply
contexts and the competitor's condition in the market could be evaluated through effective
market research.
The aim of the innovative research would be to aid the creative capability of the
company. This innovative plan would be designed and maintained by a number of skilful
personnel (Wowak et al. 2016). There would be a different unit of employees for the market
research, product designing and manufacturing. The personnel would be recruited in these
three categories that would be completely separated from the other units of the company.
Responsibilities
The whole project would be managed by the project managers who would distribute
the responsibilities within the marketing managers, sales managers, manufacturing managers,
financial departments and other employees.
Marketing Personnel