Detailed Business Plan Report for Organic Foods Ltd. (UK Market)

This report presents a comprehensive business plan analysis for Organic Foods Ltd., a UK-based company importing and selling ethically sourced organic fruits and vegetables. The report begins with an overview of the proposed business idea, followed by an evaluation of the external environment, including political, economic, social, and technological factors. A SWOT analysis is conducted to identify the company's strengths, weaknesses, opportunities, and threats. The marketing mix, encompassing product, price, place, and promotion strategies, is discussed. Furthermore, the report analyzes the competitive landscape using Porter's Five Forces model, highlighting the competitive advantages of Organic Foods Ltd. The analysis provides insights into the company's market position and strategic recommendations for future growth and profitability. The report concludes with references to support the analysis.

Business Plan

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of Proposed business idea..........................................................................................3
Evaluation of the external environment......................................................................................3
SWOT Analysis..........................................................................................................................1
Marketing Mix............................................................................................................................2
Discussion of competition and competitive advantage...............................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business plan is defined as a written document that contains several information related with
establishing or expansion of business in new market. Information includes mission, vision, using
of models or frameworks to achieve growth and success (Burns and Dewhurst, 2016). It requires
strategic planning and policies that can make easy for newly business to enter into new market.
Employees plays an important role in accomplishing desired objectives by receiving their
maximum contribution. The present assignment report is based “Organic Foods Ltd.” which is
UK based company currently importing and selling ethically sourced fruits and vegetables. The
owners of such respective company analyses the complexities of business environment under this
report along with the potential threats and ways of maximising opportunities to ensure
profitability and growth of company.
MAIN BODY
Overview of Proposed business idea
Organic Foods Ltd. is an organisation of UK which is currently importing and selling
ethically sourced fruits and vegetables. It supplies its products through partnership with Eastern
European farms that produces organically and distribute it through online sale and to the
consumer doors. At present, the company is located at owner’s home due to cost-saving
initiatives and nature of business (Online) thus to expand its business, business owner now
decides to employ 10 staff within the first 6 months of operations and shift its business to office
building outside of Birmingham due to reduced rent. Thus, to make strong existence into market
business owner is willing to analyse the contingency of business environment and make suitable
plans to eliminate potential threats and maximise opportunities so as to enhance profitability and
growth of company (Dong and et. al, S., 2020).
Evaluation of the external environment
Political factor – This factor can change because of the policies and actions of the
persuade government at every level. Stability of government provides the advantage to company
to perform its operations effectively as regulations are not changing which provides a smooth
running of operation of the organisation, but it also has a negative effect because of the policies
of the government which are strict in context to the food industry and because of the high
interference of government authorities upon entities engaged in food sector (Duvier, Anand and

Oltean-Dumbrava, 2018). Thus, in this it is essential for Organic food to comply with current
political parties’ standards in order to conduct business operations effectively while assuring
support of government authorities.
Economic factor -
This factor include change in economic rates that influence operations of business. It has
been evaluated that in food industry there is high influence of dynamic fluctuation in economic
rate changes such as tax rate, surcharge and more which is having significant impact upon
company activities and operations. Thus, it is essential for Organic food to undertake advantage
of strong economic strategies with the help of financial advisors in order to overcome the
negative impact on economic fluctuations upon company operations. With the help of this entity
can perform their business with more effectiveness while assuring smooth organisational
activities (McKeever, 2016).

Social factor: This factor depicts about to determines the demographics and target
customers, it analyse to approaching customer with segregate age, gender, caste and religion.
Through this element a particular company can select their people as well as on the basis of their
buying capacity and different type of taste and preference. In perspective of Organic food
company, they can select their in United Kingdom where there is high expansion of population
along with better scope of organic food like vegan types. As people are very concerned for their
health and lifestyle and they majorly seeking for good quality of food which must contain
authentic raw material. Thus, the culture diversity changes the market which effectively increase
the organic food brand towards approaching middle class. Organic food increases their sales and
becomes popular in attain large number of clients (Mian, Lamine and Fayolle, 2016).
Technology factor: According to this factor, it assorts to get high competitive advantages
with over to emphasis about research and development and other technical issues. As in United
Kingdom having high scope of technologies as well as artificial intelligence is plays an important
role to increase the business growth and high gain of competitors’ position. Many companies are
usually presuming to taking order online orders of product and they supply at door steps to their
clients. To provide different offers in food product like buy one get one free, discounts and high
term of supply clients for better product of high optimisation of brand. The company enables
artificial intelligence featured resources in their premises to increase positive automation
technologies better enhance of sales product. Organic food venture ensures about their quality
and in United Kingdom there is less quantity of vegan food. Therefore, through technological
factor it brings more positive outcomes such high mobility of production and skilled labours can
make better infrastructure (Robinson and Sensoy, 2016).
SWOT Analysis
SWOT analysis is tool that is use for analysed the internal factor of an organisation.
SWOT analysis uses to determine the strengths, weakness, opportunities, threats. It helps to
develop strategies for enhancing the market performance. SWOT analysis is a process that
ensure the objective of an organisation. SWOT analysis can explore opportunities for new
strategies or solutions to problems (Rodgers and Williams, 2019). Organic food Ltd. is a UK
based company that is the importer or seller of fruits and vegetables. SWOT analysis helps to
know the strength weakness opportunities & threats. SWOT analysis helps to overcome from the
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problems and expand the market in a proper manner. It helps to know the opportunity that help to
increase the customers and business.
Strength
Organic Food Ltd is a UK based company
that is importer and seller of fruits or
vegetable. It is cover all market of UK.
It has a network of supplier farms for proper
supply on demand.
It is cover the 3.7 million European migrants
and they are loyal customers of this
company.
Weakness
 Organic food Ltd have total business on
online platform they haven't any offline
platform.
 When company expand the business in
other market faces loss.
 They have no trademark or any unique
brand name.
Opportunities
 This company is new in market and they
have opportunity to tie up with big firms
and expand the market.
 Strategic alliances help to make
strategies for management and expansion
to company
 Enhance the production and avail other
product for customers.
Threats
 This company is new in market and there
is more competition in market, they only
have online platform for their business.
 They have only specific product that's
why facing problem in expansion.
 They have no strategies how to deal with
new competitor.
Marketing Mix
Marketing mix is a technique of implementing the four pillars of the organisation that are
product, place, price, promotion. It will help to build good brand image, product quality and
finding the right customer with the correct promotional tools that increase the growth of the
company and sustain in the market (Schaper, and et. al., 2014).
Organic foods limited is a UK based organically farmed fruits and vegetables company,
which implementing the marketing mix in the organisation that will help to select the right price
strategy, also will help in deciding the target market with effective promotional tool for the
company.
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P' s of Marketing Mix:
PRODUCT- A Product is something which is meant to satisfy the needs of the
consumer, It can be tangible or Intangible or kind of services. Organic foods Ltd. Producing
organically produce fruits and vegetables. While creating the product, manufacturer should have
emphasised on high demand goods and also study the life cycle of the product with good market
research (Sung, Cooper, and Kettley, 2019).
The following points should keep in mind while developing the product:
 How will customer use the product?
 Did product have a catchy name?
PRICE- A Price is something, which is paid by the consumer with full satisfaction. Price
have a important impact on marketing strategies and on loyal customer. Organic food Ltd. should
adopt the competition- based strategy, in which manufacturer should fix the price after the brief
research of competitors that what price contender is fixing according to that company should fix
the price.
The following points should keep in mind which deciding the price of the product:
 Manufacturing cost should be calculated.
 Need for slightly decrease in the price of the product that will affect the or increase
demand in the market.
Place- Distribution of the product is very important part for the company, product should
reach easily to the potential customer. Organic foods Ltd. Accessing the online platform for the
distribution of their product. Organisation should enter in the Birmingham market as there are
maximum tourist spots and food choices of the people are also favourable for company. It is very
important to compass the potential customer to meet the sufficient supply of the product
(Teixeira and Pereira, 2019).
The following points which keep in mind which choosing the deciding the right place:
 Easy implementation of supply chain system.
 where are the potential customer?
PROMOTION- Promotion is a tool by which a company can gain the brand image and
recognise the sale of the product. Organic foods Ltd. Should use social media marketing as a
promotional tool because there are millions of active users on single platform, which will help in
connect more customer and making public relation.
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The following points for selecting right promotional tools:
 How the company can react to potential customer?
 Is it the right tool that are using for promotion?
Discussion of competition and competitive advantage
Porter's Five forces model also known as the five forces model. This model was given by
Michael E. Porter and it was basically generating to help organizations to developed the
corporate strategies. This model helps to recognize and measure the significance forces that
usually define the profitability of a company. With the help of this model, an organisation can
easily analyse the competitive environment of the organization. This model is very prominent
and using by every industry.
Here we are taking organic food Ltd. Company that is UK based company. The main
purpose of this company is import and it is a seller of fruits and vegetables. This company is
online marketing and also provide the facility of door to door product distribution. Company
understand the market and customer need that's why company online networking going on now a
day for customers’ comfort. Company product basically targeted to the customers’ expectations
and that fill the gap in the market that is concern European migrants which prefer the food taste
from home.
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Figure 1Porters’ five forces, 2020
Source: Porters’ five forces, 2020
This model shows the competitive environment situation of the industry and also analyse the
attractiveness of the company with the help of these five factors. These five factors are: - Threat of new entry- firstly identify the new entrants because they threaten the market
share of old competitors. Competitive threat is not only for existing industries also for
the new. Organic food Ltd. Company is new in the market so the threat of new entry is
high because this time company is not well established so this company will face high
force of threat of new entrants.
 Bargaining power of Buyer-Strong bargaining power is important for the company. It
refers to the buyers’ power balance in the relation between industry and the customers.
Organic food Company provides a good products and services so they have the power to
change the price because customers are satisfied with their organic food and their door to
door delivery services. Buyer have the power to switch the cost of the product. If buyer
buy product in bulk and switch to another product, then this situation occurs but I this
company buyer do not have more choice to switch to another supplier so the force of this
factor is low.
 Bargaining power of supplier- If the bargaining power of supplier is stronger so
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company face more difficulty to make profit because supplier can easily determine the
company term and conditions. bargaining power of suppliers’ force is moderate in this
company. Threat of substitutes- This is also a big threat because buyer can easily switch to another
product. Switching situation based on the cost and quality of the product. This organic
food based company are offering good discounts and price and providing delivery
services so the threat of substitute force is low.
 Industry Rivalry – In this factor, it analyses the degree of the competition between
existing and new company. High level of competition leads to more difficulty for the
existing company to earn profit. This organic food Ltd. Company are facing the moderate
level of force of competition because demand is high of organic food and in market only
few firms are doing this business.
CONCLUSION
It can be concluded from the above report that an organisation can enter into a new market
by studying market using various models and frameworks such as SWOT, PEST, 4P’s of
marketing etc. These all models assist management to identify and analyse the complexities of
business environment which can may affect the sustainability of newly business into market thus
it makes easy for business owners or management to make suitable plans and policies which can
tackle the risk occurs due to market contingencies.
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REFERENCES
Books and Journals
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Leka, S., Jain, A., Zwetsloot, G., Andreou, N. and Hollis, D., 2016. Future challenges of
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and Safety, 14(1), pp.65-80.
McKeever, M., 2016. How to write a business plan. Nolo.
Mian, S., Lamine, W. and Fayolle, A., 2016. Technology Business Incubation: An overview of
the state of knowledge. Technovation, 50, pp.1-12.
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Rodgers, P. and Williams, C.C., 2019. Entrepreneurial practices in an age of super-diversity: A
study of Ukrainian entrepreneurs in the UK. In Informal Ethnic Entrepreneurship (pp.
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Teixeira, A.A. and Pereira, I., 2019. The perceived usefulness of the business plan in formal
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