Go Organic: Business Plan for an Organic Grocery Store in Manchester

This project presents a comprehensive business plan for 'Go Organic,' an organic grocery store concept. It begins with an executive summary, outlining the business idea, which capitalizes on the growing demand for organic products in the UK. The plan includes an analysis of the team's entrepreneurial competencies and sets SMART objectives. A PESTLE analysis assesses external factors, and a competitive analysis evaluates the market landscape. The marketing mix (product, price, place, promotion, process, people, and physical evidence) is detailed, along with STP (segmentation, targeting, positioning) strategies. Sales and operational plans, including sales forecasts and financial projections, are provided, along with an analysis of the business's strengths and risks. The plan also includes an analysis of the sales and operational plan including sales forecasts and financial projections, and closes with a closing summary. The business plan aims to provide a detailed analysis of the business to ensure viability and profitability.

ENTERPRISE AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
TASK 1: BUSINESS PLAN...........................................................................................................1
Executive summary.....................................................................................................................1
The concept..................................................................................................................................1
Team's entrepreneurial competencies..........................................................................................1
SMART Objectives.....................................................................................................................2
Pestle analysis..............................................................................................................................2
Competition.................................................................................................................................3
Marketing mix.............................................................................................................................4
Marketing the business: STP.......................................................................................................5
Sales and operation......................................................................................................................5
Sales forecast...............................................................................................................................7
Financial projection.....................................................................................................................8
Strength and risk of business.......................................................................................................8
Closing summary.........................................................................................................................9
TASK 2..........................................................................................................................................10
REFERENCES..............................................................................................................................24

TASK 1: BUSINESS PLAN
Executive summary
The name of new business idea is “Go Organic” grocery stores who offers only organic
products. As the demand of such products increases from last 5 years up to 25% in UK, so
investing upon it will be more beneficial. The purpose to set up this idea is to meet the wants of
individual who are health conscious. The health survey for England also stated that there were
28% of adults are obese in 2020, so the new business idea of opening organic grocery store is
feasible (UK consumer want more organic everything, 2020).
The current business plan includes business canvas model that define and communicate
the idea in better manner. Further, it highlights external factor that affect the business directly
and with the help of Marketing mix, study present the actions which company use to promote its
own products. Apart from this, through sales forecasting, plan assists to examine whether the
business is viable or not, along with this different strengths and risks pertaining to business will
be drawn.
The concept
In the present report a new business is being developed relating to the store which will
provide all organic product under one roof. Go Organic is the business which is coming up with
the idea of a grocery store which will involve organic beverages and food and herbal beauty
products. The reason underlying selecting of this business is that in UK current market trend is
towards consumption of healthy and organic products. In addition to this obesity among people
is also at rise and due to this company has come up with the idea of organic grocery store.
Team's entrepreneurial competencies
There will be 10 members who run Go Organic in effectual manner, but for that they
required below mentioned competencies that assist to smooths the business operations. Communication skill: This ability must have possessed by entrepreneur and team
members of quoted company because it helps to negotiate with suppliers, customers and
employees (Bird, 2019). With the help of effective communication skill, manager and
leader will easily build good working relationships with their subordinates, also they will
understand the views of high authority as well.
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 Leadership skill: Company have a small team, so leader must have strong leadership
skills that assist to keep motivate their staff members in order to get the best out of them.
This in turn improve productivity and enhance the company's performance as well. Delegation and time management skill: if members and owner do not possess this skill
then chances of business failure increases (García-González and Ramírez-Montoya,
2020). Therefore, managing time effectively and delegate the roles and responsibility to
each member assist to run an organization in effective manner. This further allows to
generate better revenue.
 Financial management: The team members and entrepreneur should have strong
financial management skills that assist to manage the cash inflows and outflows in better
manner. With the help of such competency, owner is able to forecast the cash and
monitor profit and loss.
SMART Objectives
 To increase the customer, base up to 20% within 1 year by offering organic products
 To raise the sales of a company by 10% within 1 year.
Pestle analysis
In order to examine the external factor that directly affect the business performance,
Pestle framework is used. This is as mentioned below:
Political factor: The revenue and profitability of a grocery store is affected by
government policy and international trade law. Thus, each country abides by their political
regulation that affect the business performance (Song, Sun and Jin, 2017). Similarly, fluctuation
in tax rate of UK might increase the prices of offered products within Go Organic and this cause
negative impact upon sales. That is why, stores must comply with guidelines proposed by
government in order to run business in effective manner.
Economic factor: It is deal with fluctuation in economy of a country. Due to pandemic,
the economy of UK is hit in negative way, as a result the buying power of a customer is also
decreases. Thus, to deal with such factor quoted company may offer the products at low price so
that consumer may invest, this helps to enhance the profitability as well.
Social Factor: Consumer preferences are the main social factor affect the industry and
now a day, individuals shift towards online purchasing (Pan, Chen and Zhan, 2019). As Go
Organic is a small departmental store and did not deal online so it might affect the business
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profitability. On the other side, through market research it is analyzed that customer prefer
organic products due to having health issues. Therefore, understanding this, it will open store
which contain only organic products.
Technological factor: In the modern era, most stores uses variety of technologies in
order to manage the business operations like adopt new system, software etc. Adoption of
technical systems is essential for managing the inventory, getting customer orders, making
payments and number of operations (ThomasArrigo and et.al., 2020). Business has to buy
software, tools and the equipment to manage the business. If company do not adopt for technical
advancement in the company it will not be able to compete successfully in the market.
Legal factor: Every business has to comply with the legal rules and regulations
applicable to it. A company operating in multiple regions has to comply with legal and statutory
requirement of each region. As the business is entering into market it has to comply with
different regulatory requirements related to registration, establishment of business, trading
license and filing of timely financial statements to the respective authorities. Business has to
remain updated with statutory laws and regulation and changes in them so that they are compiled
timely avoiding penalty.
Environment factor: It could be seen that environment exploitation has raised to
significant level by the businesses. There is increased water and air pollution from factories
harming the environment. Businesses are expected to undertake their corporate social
responsibility towards the environment (Matovic, 2020). Such businesses gain market
recognition and also gain trust of society. Business should undertake the responsibility towards
society through conducting social welfare programs and charity for education.
Competition
Particulars Go Organic Plant organic Organic & Natural
Product Store deal in three section
i.e. beverages, herbal
beauty products and food
product (puffed snacks,
candies, dried fruits,
Gulten free cookies)
The company deal in
food, beverage, desert,
dairy products,
vegetables and fruits
It offer wide range of
organic foods,
beverage, home care
products and beauty
products
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Price It uses penetration pricing
strategy
Planet Organic offer
products by using
skimming pricing
strategy (Tench and
Topić, 2017).
It uses competition
pricing strategy in
which prices are
fluctuate by analyzing
rival's pricing strategy.
Promotion Go organic will promote
products using social
media marketing which is
most useful today. and
traditional methods of
newspaper and magazines.
It promotes its product
through digital
marketing channels
and television and
newspaper ads.
It uses both traditional
and modern methods
of promoting the
products and conducts
promotional
campaigns across
different location
(Sudana and et.al.,
2019).
Marketing mix
Product: Go Organic offer range of organic products i.e. Beverage in which wide variety
of energy drink and juices. Further, in herbal beauty product quoted firm will sell organic hair
spa cream, mascara, body lotion etc. Next is food which includes organic pasta, spices, grain etc.
Price: Quoted firm will use penetration pricing strategy which helps to attract the range
of customers because it offers product at low rate.
Place: The company will establish it store in Manchester City, England because there is
no organic store and also, there is a high demand of organic product as well.
Promotion: In order to promote the products, company will use only modern form of
marketing tools i.e. weekly post on Facebook, Twitter. Further, it will have designed own
website through which customer will deal directly to the store.
Process: The process of a company is simple because all three sections are properly
deigned and signs will be used to show the path of each section for customers. Also, the billing
system will be simple to use because for each cash counter, one sales boy will be hired in order
to enhance customer service.
People: The company's key people will be its employee, customers and owners.
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Physical evidence: Its own physical store, social media posts, employees, logo and
owner will be considered as a physical evidence for Go Organic.
Marketing the business: STP
Element Description
Segmentation Segmentation is defined as dividing consumer
on different groups on some common basis.
The major segment on which consumer can
be divided are geographic, demographic,
behavioral and psychographic. The major
segment of Go Organic will be based on
demographic and psychographic segment.
Targeting Under the demographic segment major target
of GO Organic will be based on age that is
25- 50 age group of people. In addition to this
the psychographic segment major focus will
be on attitude of consumer that is people who
are more health conscious.
Positioning For the positioning of the product Go Organic
will focus on quality of goods and easy
availability of goods to the consumers. This
positioning is essential as this will create a
distinct position in the mind of consumers.
Sales and operation
Sales- For the business of Go Organic to start in proper and effective manner the
important thing for company is to improve the sales of company. For this it is essential for
company to decide for selling strategies in advance. This is done in order to attract consumer so
that sales of company will increase and this in turn increases the profitability of company. Thus,
some of the sales strategy which Go Organic can adapt are as follows-
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 Sales promotion- this is a good type of strategy under which company will provide
different discount and offers to consumer. For the first 30 consumer 20 % discount will
be there and for next 20 consumer 10 % discount will be offered. This will attract
consumer to come to the place and buy the product at first so that they can avail discount.
 Referral scheme- this is also another technique which will be used by Go Organic in
order to attract consumer. In this scheme if consumer will refer the store to other people
and they come and buy the product then 5 % discount will be provided to consumer
referring the store. This strategy will increase the number of consumer and as a result
sales and profitability will increase.
Operations- this is also an important aspect at time of starting a business as if operations
team will not be good then this will affect working of company. the operational team of Go
Organic involve total of 10 people. The role and responsibilities of the different people within
the company is as follows-
Designation of person Number of people Roles and responsibilities
Owner 1 The major role of owner is to
invest money in business and
oversee all the activities of
business.
Finance manager 1 Key responsibility of finance
manager is to allocate money
to all business activities in
such a manner that it
increases profits. Also,
finance manager has to see
that from which alternate they
can borrow money.
Marketing manager 1 Role of marketing manager of
Go Organic is to build
strategies for attracting
consumers. This is important
as if consumer will not be
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liking the product or services
then company will not grow.
Person at Cash counter 2 The major responsibility of
cash counter employee is to
clear the billing of consumer.
Also, they have to record all
the bills in the internal control
system and in bill books.
Manager 1 The role of manager of Go
Organic is to oversee that all
the employees are doing their
work in intended manner.
Also, manager is responsible
to oversee that all activities of
business are taking place as
per planning undertaken to
complete work.
Sales man 4 These people are responsible
for dealing with consumers
and assisting people in buying
the product which they want.
Salesman are also responsible
for explaining product to
consumers and also to solve
any query of customer
coming to store.
Sales forecast
Sales forecasting is a technique through which company tries to predict the future sales
of company by keeping in mind the present and future market trends. For a new business it is
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essential to predict the sales in proper way as it provides direction to company that how they
have to work.
Sales forecast (amount in 000)
Product range 2021 2022 2023
Beverages 20 24 26.4
Herbal beauty products 16 17.6 19.36
Organic food 40 44 48.4
Total sales 76 85.6 94.16
Financial projection
Particulars 2021 2022 2023
(amount in 000)
Cash inflows
Opening cash inflow 85 147 219.04
Sales revenue 76 85.6 94.16
Other income 50 48 56
Total cash inflows 211 280.6 369.2
Cash outflows
Material 17 12.84 14.124
Labor 14 14 14
Other expenses 18 18.72 19
Administration
expenses 15 16 14
Total cash outflows 64 61.56 61.5928
Cash deficit / surplus
or closing cash
balance 147 219.04 308
Strength and risk of business
The major strength of Go Organic are as follows-
 The strength of the business idea of Go Organic is that this company brings in the
product as per the latest demand of consumers. The reason underlying this fact is that in
current market consumer are more attracted towards use of organic products.
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 Another strength of company is that it brings three different segments of organic
products. This involves organic food, beverages and herbal beauty products. For a
consumer this will be beneficial that they can buy all these products at a single store and
not have to go to some other place.
 Along with this another strength is that it uses effective sales promotion techniques and
this will increase the number of consumers to a great extent.
Risk of business
The business operates in external environment and there are many different types of changes in
the external environment. Hence, there can be many risks which can be faced by Go Organic
which are as follows-
 The main risk associated with this business is that the competition within the market is
very high and this affect the working to a great extent. This will create problem for
company as they will have to make many strategies for attracting consumers.
 Another risk in the business is the technological risk as there are many advancements in
technology sector and if company will not adapt to this then this will decrease
profitability of company.
 In addition to this another risk associated with grocery store is financial risk. This risk
will arise because of the fact that it is not necessary that business will start earning profit
from its initiation only.
Closing summary
In the end it is summarized that new business idea of organic store will be viable. The
reason behind feasibility and viability of plan is that this is the recent trend in the business
environment. Along with this with help of above discussion it is also clear that there are skills
which will be assistive in the management of the entrepreneurial venture to be successful. The
product of the business involves all the organic product like the herbal beauty products, organic
beverages and food products. Further it was also concluded that major target of company will be
people belonging to age of 25 – 50 and consumer who have positive attitude toward
consumption of healthy and organic food.
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TASK 2
Slide 1
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Slide 2
Notes:
The new business idea is Go Organic in which business entity will offer range of new
products to their customers because statistics shows there is a high number of people who are
suffering from obesity i.e. 28% of the total population are obese in which majority of them are
adults. Therefore, this idea will be feasible because it is completely based upon the organic food
products that helps individual to stay fit and healthy. The business will be successful because
there is a high demand of organic products and that is why, there are around 8 organic stores
within UK. That is why, the concept of Go Organic will be viable and market continues to grow.
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Slide 3
Notes
To set up a sustainable business model and also turn specific ideas into practical
application, different skills and competencies required. In the context of chosen business entity,
there will be 10 members including owner who share their expertise in order to run a business in
better manner. For that, different skills will be required such that communication skill that assist
to communicate the views of entire team so that they will attained the defined aim. Further,
strong leadership skills must be possessed by leader and manager. With the help of such
competency, they keep motivate their employees and also provide direction. Apart from this,
team members must have strong financial management skills because it assists to manage the
cash flows within a business and determine whether the business is profitable or not. In addition
to this, having effective time management skills also assist to deliver best customer service so
that it directly causes positive impact upon profitability. Along with this, there will be a small
number of team who work for the company and that is why, leader must delegate the roles and
responsibility as per their ability so that they deliver best outcomes.
To establish the business unit in effective manner, smart objectives will be designed such
that it will help to enhance the customer base up to 20% within next year. Also, this assist to
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increase the sales up to 10% by attracting range of customers, as they prefer healthy food instead
of junk one.
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Slide 4
Notes
In order to determine the macro environment factor, Pestle analysis will be used that examine
range of elements that causes direct impact upon business performance. Such that
Political factor: Due to change in political stability of a country, company's performance got
affected. If the country increases the tax rate then it company will decrease the price of offered
product in order to maintain the spending of customers.
Economic factor: It is deal with economy of a country i.e. due to inflation rate, customer are not
ready to spend their amount on unnecessary item and that is why, to tackle the issue quoted firm
will start offering product at low and reasonable rate.
Social factor: To meet the changing preference of customers, Go Organic will establish a unit
that assist to provide healthy food to their customers
Technological factor: To run business in effective manner, there is a need to comply with
technological factor such that entity may use software in order to track the inventory and cash
transactions.
Legal factor: An organization must comply with different laws that helps in smooth running
such that Employment Act, Equal opportunity act, Health and safety laws etc.
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Environment factor: Quoted organization ensure that packaging material will be recyclable and
proper waste management system will be drawn. Also, Sustainability act must be complied so
that it does not cause any negative impact upon business.
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Slide 5
Notes
The business entity completely based upon organic food product and secondary sources
reflected that there is high demand of organic products because of increasing rate of obesity
among peoples. Also, to gain competitive advantage, competitive analysis is performed in which
it is examined that Go Organic offer beverages, food products and herbal beauty products,
whereas its competitor Organic & Natural deal with home care, food and beverage. On the other
side, Planet Organic provide desserts and all food items by using skimming pricing strategy.
Also, all companies have their own promotion styles which makes itself differentiate with
others. Like chosen business will uses only modern form of marketing i.e. social media blogs
whereas its rivals use both traditional and modern tools because they already have good
customer base.
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Slide 6
Notes
From the business plan it was analyzed that the use of marketing mix is important as this
will assist Go Organic in taking decision relating to the product and its related decision. This
marketing mix will assist in deciding all the aspect relating to the starting up of business like
product, price, place, promotion and other aspect as well.
The product of the company will involve organic product and pricing strategy will
involve use of penetration pricing. This is selected as under this strategy product will sell at low
price and then after capturing market the price will be increased.
Also, this involves the place wherein the store will be placed which is Manchester City.
This is selected for the reason that there are no organic store in that area and because of this the
new store will be opened there.
Further, for aspect of promotion company will make use of digital marketing and will
also create our own website.
Also, the proses will include simple system as all the aspect of company are properly
planned and designed.
Along with this people will involve different people related to business which are owner,
consumer, employees and other stakeholder of business.
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In the end physical evidence will involve the store, website of company and logo of
company.
In the market there are large number of consumers and for simplifying the targeting the
company will focus on some particular segment.
 The segment on which company will be focusing is the demographic and psychographic
segment.
 Further, in addition to this major target of Go Organic will be on consumer belonging to
age group of 25- 50 and people with positive attitude towards organic food.
 For effective positioning of product major focus will be given on quality and easy
availability to consumers.
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Slide 7
Notes
Further, for increasing profitability of company major focus will be laid over sales of business.
For this major selling strategy selected will be of sales promotion and referral scheme. Under
sales promotion first 30 customers will get 20 % discount and next 20 will get 10 % of discount.
In the referral scheme 5 % of discount will be provided to consumer who refers the company
and its product to other consumer as well. In addition to this the operation of company will
involve total of 10 people. This is important as if people will not be there then management of
company will not take place in proper manner. For this there is one finance manager and one
marketing manager who will be responsible for their department respectively. Further single
owner is there who will be responsible for overall management of business and investing in
business. In addition to this there are two people at cash counter who will clear the bill of
consumer coming to the place. Along with this there will be 4 salesmen who will be responsible
for providing products to consumer.
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Slide 8
Notes
For starting the business there are many different types of methods and for this sales forecast is a
major technique which is assistive to company. With help of sales forecast it is clear that sales of
every product is being increased from year to year. Along with this the financial projection is
also important to be created. This is particularly because of the reason that financial projection
provides a direction through which company can optimally use in order to manage the work. The
budget will help in deciding the expenses and income within which the whole business need to
be established and managed.
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Slide 9
Notes
In addition to this there are also some of the risk which are associated with starting up of the
business. This includes the strength that it provides organic food products under one roof only.
Hence, this will assist company in attracting more consumer as they will have different options
at a single place only. In addition to this there are also some risk associated with business which
involves high competition, lack of financial resources and others.
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Slide 10
Notes
In the end it can be stated that the use of business plan is assistive as this will provide a brief
idea that how the business will be started. This business plan involves the different strategies and
decision which it needs to take with respect to 7 Ps of marketing. Along with this the STP
highlighted the fact that deciding the target in advance assist in proper making of strategies to
target a particular set of consumers.
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REFERENCES
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Online
UK consumer want more organic everything. 2020. [Online]. Available through:
<https://www.forbes.com/sites/alexledsom/2019/02/16/new-report-uk-consumers-want-
more-organic-everything/?sh=395f787f68f0>.
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