Enterprise and Business Development Plan for Organic Beauty Ltd

This report provides a comprehensive business plan for Organic Beauty, a company focused on manufacturing and selling organic beauty products and healthy energy drinks. It includes a detailed analysis of the macro-environment using SWOT analysis, identifying strengths such as natural raw materials and diverse product offerings, weaknesses like high competition, opportunities in digital marketing, and threats from COVID-19. The report also employs Porter's Five Forces to analyze industry competitiveness, covering competitive rivalry, supplier power, buyer power, new entrants, and the threat of substitutes. Furthermore, it includes a competitor analysis comparing Organic Beauty to The Body Shop, pricing and marketing strategies, an operational plan with a transactional revenue model, and a definition of the targeted audience. Finally, the report presents a budget income statement and concludes with the importance of a business plan for implementing business ideas. Desklib provides access to similar solved assignments for students.

ENTERPRISE AND BUSINESS
DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business detail............................................................................................................................3
Macro - Environment..................................................................................................................4
Industry Analysis........................................................................................................................5
Competitor analysis.....................................................................................................................6
Pricing and marketing.................................................................................................................6
Operational Plan...........................................................................................................................7
Targeted Audience.......................................................................................................................7
Budget..........................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Enterprise is defined as legal entity that conduct commercial activity in order to run
there business in the competitive environment. The main aim of the enterprise is to earn profit
so that it can sustain in the market. The present report is based on Organic Beauty product and
healthy drink that manufacture natural beauty care products and energy drinks for their
customer. Along with this, the study will discuss on the business plan that is required by
the firm so that it can run their business effectively in the market. In addition to this, report
will throw light on the market needs and SWOT analysis for identifying macro environment.
MAIN BODY
Business detail
Due to COVID- 19 the business environment has changed and their has been drastic
change in the customer needs and demand that has affected the growth of many
organizations. So to gain success in the market Organic Beauty has decided to launch
organic products and drink in order to run their business.
 Product and services: The organization has decided to sell beauty and energy drink
to their customer and it will be made of natural organic raw material. It has also
decided to manufacture lotion and cream for attracting large customer (Frolova, 2019).
However, products are manufacture from natural extract and less chemical to
maintain the authenticity of the products. However, the energy drink will contain rich
protein and fat free drink.
 Targeted marketed: The organization has decided to attracted customer age group of
18- 50 both men and women. However, it will be mainly focus on the young generation
for the beauty products as it is generally in high demand by them. Along with this,
for selling the energy drink it will collaborate with fitness institution as this
product is most needed by them (HAN and Kang, 2020). In addition to this,
organization wants to attract customer of middle and high level income in order to sell
their product in the market.
 Attribute: The Organic Beauty has decided to develop 24 hour customer care
services so that it can easily identify the issues faced by them and find an appropriate
solution for them. Along with this, it will provide services such as chat with health
care expert so that customer can have expert advices related to their skin care and over

health. Moreover, all these attributes will allow the organization to attract large
customer.
 Values: The organization will be following business ethics while conducting the
business. Along with this, it will also maintain transparency within their employees and
customer (McKenzie and Sansone,2019). In addition to this, all the safety norms will be
followed while manufacturing the product and services to safeguard customer from
any hazard.
 Location: The company will be opening physical store in the prominent place as it will
contribute in earning large profit. Along with this, it will sell its product with the help
of digital marketing.
 Involvement: The Organic beauty will be operating their business with 400
employees and out of that 200 will be focusing on making skin care products and 100
subordinates will manufacture energy drink.
Macro - Environment
The business has to identify the key factors that will affect the overall growth of the
firm in positive as well as negative way. In addition to this, the company has to analysis the
market environment as it contributes in implementing the strategic business plan.
SWOT:
This is known as Strategic analysis tool that help the organization in identifying external and
internal factor that can affect the overall growth of the firm. Along with this, it includes
strength, weakness, opportunity and threat.
Strength: The major strength of the organization is that it will be using natural raw material
for manufacturing the product that will contribute in attracting large customer as it has high
demand (Асанова, 2019). Along with this, the organization will be giving their customer
variety of option in skin care commodities and energy drink. That will help the company in
reducing their competition.
Weakness: The weakness of the organization can be high competition as there are many
substitute available in the market due to that firm has to reduce the prices of the product in
order increase sell (Irfan and et.al., 2019). In addition to this, it has to make use of
innovative technology so that it can sustain in the environment.

Opportunity: The Organic Beauty can make use of digital technology in order to cover the
large area of market. Moreover, online website will help the company in increasing the brand
awareness in the market (Wellner and Lakotta, 2020). However, in the time of pandemic it is
one of the best platform of marketing.
Threat: The major threat that organization can faces is COVID- 19 as it has affected the taste
and preferences of customer (Thabit. and Raewf, 2018). Such it wants to spend money on
essential commodities and due to that other businesses has suffered loss.
Industry Analysis
Porter Five force
This tool is basically used for analysing the competitiveness of the industry and identify main
sources of competition in the industry. Along with this, it is very helpful in developing the
right business strategy for the firm so that it can huge profit. It s generally consist of 5 factors
that are mentioned in details below:
 Competitive Rivalry: The Organic beauty has to make use of innovative and advance
technology so that it can reduce competition. Along with this, due to high competition
and high availability of substitute product it has to maintain the price so that it can
attract large customer.
 Supplier Power: It also has high power that can affect the business growth thus
Organic Beauty has to maintain few supplier so that it can rely on more for the
help and do not have reduced the price (Blut, Teller and Floh, 2018). In addition to
this, if the organization has high supplier than there will be high chance to switch to
cheaper alternative. Thus, it will impact on the profitability of the business.
 Buyer Power: It plays very important role in increasing the overall sale of the firm.
However, Organic Beauty is targeting limited customer that will contribute in earn
more profit as there will be less competition. Along with this, to maintain the
customer organization has to make use innovative technology so that it can attract
more consumer.
 New Entrants into industry: It affects the overall business in negative as the
organization has to spend more in the operational cost so that it can sustain in the
competitive market (Dost and et.al., 2018). However, the beauty organic has to come
up with new product so that it can run its business effectively. Along with this, if

there is high competition then company has to reduce the price in order to increase
the sales and to maintaining the market position.
 Threat of Substitutes: The Beauty Organic has many substitutes and due to that it
can lose potential customer. Along with this, the more substitute the firm has to
lower down the prices for commodities.
The major competitor that will be faced by Organic Beauty is The Body Shop as it has high
brand image that will attract large customer. Along with this, the organic beauty has to
spend more in the manufacturing so that it can produce great quality of products.
Competitor analysis
BASIS ORGANIC BEAUTY THE BODY SHOP
Product line Skin care and energy drink Skin care and make-up
Prices Medium range High range
Competitive advantage Natural based products Innovative product
USP Higher Quality Attract large customer
Promotion Digital marketing Social Media Marketing
Pricing and marketing
 Product: The organization has decided to manufacture product related to skin care as
well as energy drink for maintain the health of the customer. Along with this, it will be
providing its customer with variety of product line such as cream and lotion made up
or organic raw material (Parida, Sjödin, and Reim, 2019). In addition to this, the
company has also decided to sell energy drink with various flavour and low sugar in
order to maintain health of customer.
 Price: The company has decided to sell its product at lower prices so that it can attract
both high and middle class people. Along with this, the organization has also decided to
give discount on big festival so that it can attract large customer.
 Promotion: The organization has decided to make use of both traditional and digital
marketing for advertising about company. The firm has decided to adopt SMM and
affiliated marketing for promoting the products on various online platform. Along

with this, it will also advertise about the company on newspaper in order to increase
brand awareness.
 Process: The organization will open physical store at tourist spot so that it can
increase the sales. Along with this, it will make use of advance technology such as
contact less payment for smoothing functioning of the business (An, Kwak and et.al.,
2018). In addition to this, it will also follow all the safety norms related to COVID
that will contribute in attracting large customer.
 People: The organization will be following functional structure in order to run their
business. Along with this, there are various departments such as HR, financial and
sales so that goal can be accomplish effectively.
Operational Plan
Revenue Model
This strategy helps the organization in managing the total amount of revenue streams in the
company. Along with this, it helps in managing the resources that are required for maintaining
the revenue within the company. It also helps in determining the way of generating the profit
so that organization can run smoothly. Moreover, there are various type of revenue model.
The organic beauty should adopt for transactional revenue as it is one of the best approach
for increasing the capital of the firm (Alkhayrat, Aljnidi and Aljoumaa, 2020). However, firm
will be opening the physical store and digital marketing for earning the capital. It has been
one of the best model for start-up as it do not required additional cost. Along with this, the
main purpose of production and delivering the product has to been done.
Targeted Audience
The targeted market means that organization has decided to segment their customer according
to their desire of buying product. Along with this, it is one of the most important aspect of
running the business as major part of the sales has been made to the targeted audience.
 Demographic: The Organic Beauty has decided to target young women for selling
their skin care products as well for selling energy drink it has decided to target the
customer that into sports and fitness (Thabit. and Raewf, 2018). It will generally sell the
energy drink adults and not teenagers.
 Behavioural: The company has divided their customer on the basis of their selling
products such as online buyer and traditional. For online marketers it has adopted for

the customer feedback system so that it can identify their issues and provide them
with instant feedback. That will contribute in gaining the attention of their customer.
 Psychological: The consumer has been segmented on the basis of their thinking
ability such as it will target this audience that are interested maintaining their health
well-being. As the company motto is to provide organic product to their targeted
audience.
Budget
Income Statement
Particulars Amount
Sales 10000
Cost of goods sold 5000
Gross profit 15000
Variable expenses 5000
Selling and Administration expense 2000
Income from operation 4000
Income tax expense 5000
Net Income 46000
CONCLUSION
From the above report it has been concluded that business plan is very essential for
implementing the business idea. It is written document that consist of structure that helps the
company in running their organization. Along with this, the study has summarized about
Organic Beauty and the way it will expand its business. In addition to this, it has depicted
about the macro environment in order to identify the internal and external factor that will
affect the growth of the firm. Lastly, it has thrown light on the targeted audience of the
company so that it can increase the sales.

REFERENCES
Books and journals
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HAN, S. and Kang, E., 2020. The Marketing Strategy to Stimulate Customer's Interest in Art-
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of an Enterprise for the Production of Confectionery Products. In International
Scientific Conference" Far East Con"(ISCFEC 2018) (pp. 378-381). Atlantis Press.
Асанова, Т. А., 2019. The analysis of marketing macro-environment of enterprises-
manufacturers of meat and meat products of Almaty and Almaty region. Вестник
университета Туран. (2). pp.234-239.
Irfan, M. and et.al., 2019. Competitive assessment of Indian wind power industry: A five forces
model. Journal of Renewable and Sustainable Energy. 11(6). p.063301.
Wellner, S. and Lakotta, J., 2020. Porter's Five Forces in the German railway industry. Journal
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Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies. 4(4).
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of retailing. 94(2). pp.113-135.
Dost, F. and et.al., 2019. Seeding as part of the marketing mix: word-of-mouth program
interactions for fast-moving consumer goods. Journal of Marketing. 83(2). pp.62-81.
Parida, V., Sjödin, D. and Reim, W., 2019. Reviewing literature on digitalization, business
model innovation, and sustainable industry: Past achievements and future
promises. Sustainability. 11(2). p.391.
An, J., Kwak and et.al., 2018. Customer segmentation using online platforms: isolating
behavioral and demographic segments for persona creation via aggregated user
data. Social Network Analysis and Mining. 8(1). pp.1-19.
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Alkhayrat, M., Aljnidi, M. and Aljoumaa, K., 2020. A comparative dimensionality reduction
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Online references
A, B., 2018. [Online]. Available through <>
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