Enterprise Creation and Consulting: Organic Food Truck Business UK

This project report details the enterprise creation process for an Organic Food Truck business in the UK, focusing on providing healthy food made from organic ingredients. It includes a market analysis, assessing market needs, competition, and startup ideas to define an innovative business model. The report identifies market opportunities, evaluates customer needs, and proposes a market entry strategy for the UK. It covers aspects such as demographic segmentation, target market identification, and competitive analysis using Porter's Five Forces. The PESTEL analysis explores the macro environment, including political, economic, social, technological, legal, and environmental factors affecting the business. The report also delves into personal and pain points through persona descriptions and research methodology, culminating in a solution design and testing phase using the Value Proposition Canvas. The business structure is outlined using the Business Model Canvas, along with objectives, key results, and Gerber’s organizational strategy, concluding with asset creation and development strategies.

Enterprise Creation and
Consulting

Table of Contents
INTRODUCTION...........................................................................................................................1
Section 1: Problem and opportunity ...............................................................................................1
Market Analysis...........................................................................................................................1
Macro Environment.....................................................................................................................2
Industry Analysis.........................................................................................................................3
Section 2: Personal and Pain Points.................................................................................................4
Persona Description ....................................................................................................................4
Research Methodology ...............................................................................................................4
Research Objective......................................................................................................................5
Pain Points ..................................................................................................................................5
Section 3: Solution Design and Testing...........................................................................................5
Value Proposition Canvas............................................................................................................5
Competitive Solution(s) Analysis................................................................................................6
Solution’s Specifications ............................................................................................................7
Test Marketing ............................................................................................................................7
Section 4: Business structure...........................................................................................................7
Business Model Canvas ..............................................................................................................7
Sharing Economy Models............................................................................................................9
Objective and Key Results ..........................................................................................................9
Gerber’s Organisational Strategy ..............................................................................................10
Asset Creation and Development ..............................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Enterprise creation is one of important process which can be performed by entrepreneur
by introducing new ideas, technology, service and products (Acharya and Mishra, 2017).
Innovation is important for business as it provide various opportunity in market. It allow
business to differentiate their products and service from those of other market player and provide
competitive advantage to business. With innovation ad creativity in business, organisation can
attract new customers and also increase loyalty of existing customers in market. With adopting
of innovation, firm can reduce their cost and can adapt new trends in market which ensure long
term survival of enterprise in competitive world. This project report includes study of innovative
business ideas of Organic Food Truck which is providing health food made up of using organic
vegetable and fruits. This business proving healthy food due to increase demand of healthy food
in people form situation of Covid-19. This project report includes identification of marketing
opportunity for start up business, It assess marketing needs, competition and start up ideas to
define innovative business model in order to for a start up business. Additionally, it also includes
identification of proposal for strategy of market entry in UK.
Section 1: Problem and opportunity
Market Analysis
Market analysis refers to a qualitative as well as quantitative assessment which consider market
size in value and volume, customer segment, competition, consumer buying pattern, barrier to
entry and many more (Goh and Arenas, 2020). Objectives behind market analysis includes
understanding of market and to know whether market is large enough to get marketing growth.
Marketing analysis of Organic Food Truck in Hospitality and food sector are as follows:
Demographic and segmentation Organic Food Truck Business is adopting local approach
for developing business plan for their organisation.
Company is segmenting market on basis of geographic
segmenting as they are providing their service only in
London.
Target market Target market helps business to target specific group of
customers which helps to effectively serve to their
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customers. Organic Food Truck business is targeting
youngsters to provide their products and service in market.
Market needs Due to Covid-19 situation, demand of health and organic
food has increased in different parts of world. Organic
Food Truck business is providing organic and healthy
food for their products and service to their customers.
Competition Competition in food and hospitality market is higher as
there are various competitors in market which providing
their products and service in market (Higuchi and
Yamanaka, 2017).
Barrier to Entry There is no barrier on entry of new firm in Hospitality and
food products. Organic Food Truck business face no
barrier in entry of market as any business can venter in
this market any time with less investment.
Regulation There are high regulation in hospitality and good sector.
Some of regulation which is to be followed by Organic
Food Truck needs includes food safety regulation, covid-
19 regulation, health and safety regulation.
Macro Environment
Macro environment includes those factors which are present outside business and create serious
impact on any business. For analysis of macro environment, PESTEL analysis is important in
order to identify impact of various factors which are present outside of business. These factors
includes legal, technological, economical, social, political and environmental.
Political factors: Political factors includes those factors which are concerned with interference
of government, trade barrier, political stability (Izod, 2018). Organic Food Truck, is one of
business which can be affected with political factors. Managers of business needs to consider all
rules and regulation related to Brexit impose by government of UK. They also needs to follow all
rules and regulation related to Covid-19 imposed by government.
Economical factors: Economical factors are those factors which can create impact over cost of
business. These factors includes economic growth, wages rate, interest rate, inflation rate and
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many more. Organic Food Truck business is getting both opportunity and threat from these
factors as interest rate in UK is low as government is providing support to new start up business
which create opportunity for their business but at same time high wages rate may increase cost of
company.
Social factors: Social factors are one of important factors for any business which includes
cultural preference, demographic factor like age, gender, income level and many more. Due to
Covid-19 situation, people of UK are more aware related to health, so it is important for business
of Organic Food Truck to consider these factors while conducting business in market.
Technological factors: Technological factors are providing competitive advantage to any
business as it decrease cost of operation and also create barrier for new firm (JosephNg, 2018).
Organic Food Truck business is also using new technology like digital payment options, online
order through mobile phone, managing menus online and many more.
Legal factors: Legal factors are again one of important factors for any business as it includes
laws and regulation of any country. Organic Food Truck needs to follow all laws relation to
employment law, health and safety laws, taxation laws, equality laws and many more in order to
smooth flow of their business.
Environmental factors: Environment factors includes various things like pollution, weather,
climate condition and many more. Organic Food Truck needs to follow all environment
regulation of government of UK. This business also includes recycling and wastage reduction in
their organisation which create good image of company in minds of their customers.
Industry Analysis
Industry analysis refers to a tool which facilitate understanding of company related to
their position in relation to other company which are offering same products and service in
market (Karamchandani, Srivastava and Srivastava, 2020). For this industry analysis, firm
adopted porters five forces model which helps to analyse and identify competitive forces present
within industry which provide opportunity and threats for any business. This analysis includes
five factors which helps to analyse hospitality and food sector for business of Organic Food
Truck. These factors in context of Organic Food Truck are as follows:
Competition in industry: Food and hospitality sector is one of sector in which there is
increasing composition as there are various local and internal players are providing their services
in this industry. These players includes McDonald's, KFC, local restaurants, cafe, bakeries and
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many more. Organic Food Truck has high threat from these factors as there are large numbers of
competitors providing their products and service in this industry.
New entry in industry: There are various regulation in this industry which increase
difficulty for any business. There are various problems like building well infrastructure,
developing unique products to compete with other players in market. Also this factor create low
threat for business of Organic Food Truck.
Power of suppliers: Food and restaurant sector require suppliers for dough, vegetables,
fruits, spices, dairy produce and other products (Katuu, 2018). Bargaining power of suppliers for
these products are comparatively low as there are large numbers of suppliers in UK for these
products. This factor create allow threat for business of Organic Food Truck in market.
Power of customers: Bargaining power depends on numbers of competitors and
substitute products. Organic Food Truck business is selling organic and healthy food which are
sold by various business in UK. So there is high bargaining power of customers in this sector.
Threat of substitute products: Restaurants and foods industry are selling similar
products and service as organic and healthy food are sold in many restaurants in UK. So there are
various substitute products of Organic Food Truck business which create high threat for
company.
Section 2: Personal and Pain Points
Persona Description
Persona description refers to description of a person which includes their personal detail
including psyche, attitude, personal trait, background and emotions. Persona are used for product
managers in order to understand behaviour, goals, traits, needs of users. Organic Food Truck is
one of business which is offering their products to people who are aware about their health. It
includes all age people across different parts of London as business is starting with 5 food truck
at its initial stage. This product provide solution to people who are aware about their health and
wants to adopt healthy food in their diet and at same time provide good taste in healthy food.
Goals of company is to expand their business in different UK and to increase profit of company.
Company is providing solution to junk food which can create negative impact on health of
people.
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Research Methodology
For this research, secondary data of information has used as in this type of research
include use of existing data and information (Klofsten and Lundmark, 2016). This research
includes use of existing data which is collated and summarised in order to increase effectiveness
of research process. Secondary research includes data of research material from different reports
and documents of research. These data is available from websites, public library, data form
existing survey. Data can be also retrieved from government and non government agencies.
Reason behind using these research is that it is cost effective research, saves time and also
enhance credibility.
Research Objective
 To identify market opportunity for business.
 To assess needs of customers to develop products as per requirement of customers.
 To develop new marketing strategy for products and service.
Pain Points
There are various pain points for any business in food and restaurant business (Lange,
Mendling and Recker, 2016). Some of these pain point can be face by managers of Organic Food
Truck are as follows:
 Recruitment, retaining and training of employees for business.
 Management of operating cost of business.
 Attracting more customers for food business.
 Following all tax or other rules and regulation.
 Use of technology and following latest trend of customers.
Section 3: Solution Design and Testing
Value Proposition Canvas
Value proposition canvas is one of framework which ensure that there is fit among
market and product (Tykkyläinen and Ritala, 2021). This canvas is set in order to refine existing
products and service or new offering is developed to introduce in market. This canvas includes
two things including customers profile and value proportion of company.
Customers profile:
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Gains: In includes benefits expected and required by customers in order to increase value
proposition. Organic Food Truck is providing healthy food to customers which is good for their
health.
Pains: In include negative aspect experienced by customers in process of getting job
done. Customers find healthy food to have bad taste which change their mentality related to
healthy food.
Customer Job: In includes various emotional, social and functional task to be performed
by customers in order to solve problem and also ensure satisfaction. There is increasing health
awareness in people of UK due to Covid -19 situation and they are focusing on healthy dies but
healthy food does not have good taste.
Value Map
Gain creator: Organic Food Truck are providing healthy food which is beneficial for
their healthy and allow them to adopt healthy life style.
Pain reliever: Organic Food Truck is providing solution to pain feel by customers due to
bad taste of healthy food.
Products and service: Organic Food Truck is providing healthy food based on organic
products and providing restaurant, take away and home delivery services to their customers.
Competitive Solution(s) Analysis
Competitive analysis is one of analysis is framework which helps to assess
competitiveness for products and service in market (Yang, Kher, and Lyons, 2018). In order to
conduct product analysis, business needs to follow some steps which are as follows:
Conduct research: In this step, managers of business of Organic Food Truck needs to
conduct research of their competitors in market. For this firm needs to identify their top
competitors, they also needs to analyse their ability to compete with competitors.
Gathering competitive information: In order to gather competitive information,
managers of Organic Food Truck can use secondary data which can be accessible by business.
Firm also collect information from advertisement, news papers, sales brochures, reference books
as well as database, annual report of company, employees, sales force and many more
Analyse competitive information: This step includes analysation of competitive
information and for this managers of Organic Food Truck needs to determine information of
products, marketing strategies, market share, identify competitors.
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Determine competitive position: In this step, managers are trying to determine their
competitive position in market in respect to their products. For competitive analyse Organic
Food Truck needs to determine competitive position by following all steps mentioned above.
Solution’s Specifications
Solution specification is an important part of evaluation of ERP vendor as well as selection
process. In this, information related to vision, goals of project, business owners, and subject
experts provide detail requirement,. This solution specification includes various detail which is
important for managers of Organic Food Truck to mention. These information includes
following aspect:
 Goals design
 statement of previous project
 function requirement of operating unit
 technical environment
 Operating environment
 Functional area prioritisation.
Test Marketing
Test marketing refers to a tool which is used by organisation in order to check viability of new
products and service before launching it in market on large scale (Lewis and Massey, 2018). Test
marketing can be conducted in business in order to ascertain success in probable market in terms
of performance of new product. Customers satisfaction, level of acceptance for product and
efficiency of marketing campaign. Test marketing can be conducted in types of goods which
includes consumer goods and industrial goods.
Consumer good marketing testing: This test can be considered to understand and know about
behaviour of consumer for trail, adoption, repeat and purchase (Luetz, Bergsma and Hills, 2019).
For identify these variable, business needs to conduct various test including simulated test
marketing, test markets, controlling test marketing, sales wave research.
Industrial Good market testing: To identify various factors related to industrial good which
include various factors like alpha testing and beta testing.
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Section 4: Business structure
Business Model Canvas
Business model canvas refers to framework for strategic management which is used for
development of new model of business as well as documentation for existing business model.
This includes a visual chart that describe various element like value proposition of product,
customers, infrastructure, finance, customer and many other things. Business model canvas of
Organic Food Truck includes all information related to partner, key resources, customers and key
activity and many more which is mentioned below:
Partners Key Activities Value
proposition
Customer
Relationship
Customers
 Local
farms:
Organic Food
Truck Business is
offering food
made up of
organic food
products and
company is taking
it from local farm
and avoiding
overseas
shipping.
 Marketing
Partners
 Retail
partnershi
p
 Marketing
 Product
Innovation
 Branding
 Product
innovation
 Use of
organic
food
product to
prepare
healthy
food
 Technolog
y
innovation
 Online
Customers
 Bulk
Buyers
and
loyalty
discount
 Referral
discounts.
Customers
 Healthy
Life-
stylist
 Families
 Old
Patients
Business
 Corporate
 Hospital
 School
Key Resources Channels
 Brand
 Creative
Chef
 Effective
Owners
 Social
media
 Email
 Website
Cost Drivers Revenue Systems
 Ingredients and organic food products  Product sales
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 Salary of staff
 Facilities  Meal kits
 Bulk orders
Sharing Economy Models
Sharing economic means sharing own resources with other for some fees and is
becoming one of popular approach for different kind of assets including cars, transportation,
toys, accessories and other resources (Mazzarol and Reboud, 2020). This model has some of
feature which are as follows:
Access in place of ownership: Business can seek any assets by renting it instead of
buying these assets. It provide various benefits to business like it saves their cost.
For this, business or platform does not require to possess any assets which are on offer.
As some business which are providing platform for business does not needs to buy these assets to
offer in market.
By using this model, business of Organic Food Truck can saves their cost as they can
take these truck on rent instead of buying. Business owners can also take table, chairs and some
other accessories on rent which helps to saves cost of company.
Objective and Key Results
There various objectives of business for which it is carried out in market. Also owners and
managers has expectation from these business (McShane, 2018). Objectives of business of
Organic Food Truck are mentioned as follows:
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 Attracting more and more customers by increasing their satisfaction with products and
service of company.
 Earning more profit for business in order to get success in market.
 Increasing market share in different place of UK to ensure long term survival of business.
Gerber’s Organisational Strategy
Michel Gerber is one of model of business which is believe that big business cannot be develop
by genius but build with determination of genius (Nadler and Slywotzky, 2017). This model is
introduced by Michel Gerber in the year 1986 which includes 7 steps for development of
organisational strategy for business. These steps required to follow by managers of Organic Food
Truck in development of organisational strategy are as follows:
Know primary Aim: This steps includes extension and goals of business and it is important for
managers of business to know primary aim of business. Primary Aim of business of Organic
Food Truck is to get growth in business by providing innovative products and service.
Define strategic objectives: It is important for business to define strategic objectives of their
business which includes money, opportunity and freedom. Strategic objectives of business of
Organic Food Truck includes getting opportunity of innovative product and increase customers
base.
Create organisational chart: For development of organisational strategy, in this step, managers
of company needs to create organisational chart which is foundation for building effective
business. This chart provide clarity of roles of each person working in Organic Food Truck and
also includes function of business.
Develop management system: It is another step in which business needs to develop
management system in which each an every problems occur in business and every function are
defined with perspective of system (Sandkuhl, Seigerroth and Kaidalova, 2017). Business owner
of Organic Food Truck needs to manage their system as business is managed by these systems.
Create personal development process: It is also important for business to create development
process in order to provide provide training to members of business. For this, managers of
Organic Food Truck needs to define as well as document system for coordination of training
process to enhance skills of people and also empower them to get success for business.
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