Organico: Developing a Business Model for Infant Organic Foods

This business report assesses Organico's new business idea in the infant organic food market, focusing on the increasing consumer demand for healthy food options. It evaluates the consumer market problem and the benefits of introducing organic toddler cereals, rusks, milk drinks, and ready-to-serve baby foods. The report develops a business model canvas, highlighting key partners, activities, value propositions, and resources. It also identifies critical success factors, such as competitive pricing and effective advertising, and includes a self-reflection on the feasibility of the idea based on team member feedback. The analysis recommends implementing a low-price and growth strategy aligned with the business canvas to achieve a significant market impact.

Running head: BUSINESS REPORT ON ORGANICO
Business Report on Organico
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Executive Summary
The idea of new infant organic food business of Organico relies in trend change within the
market along with consumer preferences that impacts the consumer trends in infant organic food
market. The objective of the paper was to evaluate the explanation of the consumer market
problem based on which the business Idea will be generated. It was gathered from the paper that
relied on the factors of the business aspects of the business it is recommended that positive
business change low price and growth strategy that can be implemented within the organization.
The paper on new business idea generation of Organico indicated that the proposed business
model developed for the company facilitated in recognising the segmentation and cost that are
experienced by the organization. This can facilitate Organico in recognising the needs along with
future transition prospects that are decide by the business in attaining success within the market.

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Table of Contents
Introduction..........................................................................................................................3
Part A...................................................................................................................................3
Business Idea...................................................................................................................3
Benefits to be generated by Idea......................................................................................4
Proposed New Business Model Canvas..........................................................................5
Critical Success Factor....................................................................................................5
Part B...................................................................................................................................6
Self Reflection on Idea Evaluation Feasibility................................................................6
Conclusion and Recommendations......................................................................................7
References............................................................................................................................8
Appendices........................................................................................................................10
Appendix 1.....................................................................................................................10
Appendix 2.....................................................................................................................12
Appendix 3.....................................................................................................................13

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Introduction
Organico is an Australian Company that will have its business operations in offering
organic food and beverages. The company is an efficient organic infant formula producer. This
company will offer organic food products for young children that offer formula and toddler
cereals, rusks and milk drinks along with ready to serve baby foods (Editorial, 2018). The
objective of the paper to evaluate the explanation of the consumer market problem based on
which the business Idea will be generated. Moreover, focused on the business idea the business
model canvas for this company will be developed along with explaining the critical success
factors considered for execution of Idea. Moreover, feasibility of this idea will be evaluated for
better functioning of the business.
Part A
Business Idea
Organico is an Australian Company that will have its business operations in offering
organic food and beverages. The company is an efficient organic infant formula producer. This
company will offer organic food products for young children that offer formula and toddler
cereals, rusks and milk drinks along with ready to serve baby foods (Editorial, 2018). Consumers
of Organico are dealing with several issues concerned with offering healthy food to their children
(Caetano et al. 2015). Addressing such market problem, Organico has developed list new
business idea of developing the new organic product such as toddler cereals, rusks and milk
drinks along with ready to serve baby foods. Considering the increasing demand of healthy food
options, Organico has developed a business idea of increasing its organic food options in all its

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stores that can promote consumers healthy eating. The company can implement strategies of
providing the value-added services relate its organic food offerings in consideration to the input
expenses. The company is observed to deal with several downside risk factors focused on
financial, strategies, compliance along with operational risks remains within online and retail
markets (Joyce, Paquin & Pigneur, 2015). Strategic factors including food waste, diversity,
organic product packaging of the brand, carbon emission as well sustainable and ethical sourcing
can pose issues for Organico that is dealt by the company(Joyce, Paquin &Pigneur, 2015).
Benefits to be generated by Idea
Business models canvas of Organico signifies the performance of the company’s
performance by means of nine associated factors mentioned in the business model (Lüdeke-
Freund, 2014). Such relationships, partners, customer relationships cost structure, segments as
well as revenue streams. It was also evaluated that from the business model canvas of the
company that increased focus is on retail and financial services provision within middle and
upper income groups. Through employing every value propositions, it intends to offer better
consumer relationships. This is carried out by means of organic food strategy, human resource
and price strategies. Organico employs every major partner as well as activities in improving the
business effectiveness for turning out to be cost effectiveness. Organico is developed in a manner
that all the aspects of the business canvas is focused on offering consumers with exceptional
shopping experience yearly (Naggar, 2015). The channels along with cost structures of Organico
are associated together for obtaining high revenues from higher consumer group. Such factors of
the company’s business model canvas consider people, customers along with strategies of value
proposition. Based on its strategies value proposition along with the major partners is decided.
Moreover, within the company’s strategy of value proposition along with key partners, the

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company has focused on distinct consumer focused strategies. This is due to the reason that it
remains informed regarding selection of health food (Viljakainen, Toivonen & Aikala, 2013).
Proposed New Business Model Canvas
An efficient business model canvas is prepared for the new business Organico that
intends to operate within infant organic food industry. This also facilitates in recognising several
progression prospects within the new business idea. It also facilitates in recognition of the key
activities, key partners of the new business along with value proposition and key resources that
can facilitate in dealing with the change of preferences and needs concerned with the consumers.
The proposed business canvas mentioned in Appendix 1 also facilitated in recognising the
segmentation and cost that are experienced by the organization. This can facilitate Organico in
recognising the needs along with future transition prospects that are decide by the business in
attaining success within the market. The idea of such change relies in trend change within the
market along with consumer preferences that impacts the consumer trends in infant organic food
market. As the consumers in Australia are turning out to be health conscious, new business idea
of Organic will focus in developing infant foods through use of organic substances for those
heath conscious consumers.
Critical Success Factor
There are numerous critical success factors for Organico which can support the company
in obtaining unique sustainable position within the organic foods industry. This can facilitate in
attaining competitive advantages for the company over its major competitors and they are
elaborated under:

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 There are major competitors of Organico within the organic foods industry within
Australia. In obtaining the competitive advantages the organization has developed several
new infant organic products that can affect the food market along with facilitating quality
services (Osterwalder, 2017).
 Unique advertising power and the public relations serves as the major critical success
factors for the organization by means of newspapers, media use and the journals.
 Other critical success factors of the company are deemed to impact the nation positively
in which it has its business operation. For instance, the new business idea of opening the
organic food business offers increased job openings which offers jobs to the people
within the host countries which works within the supermarkets (Plenter et al. 2017).
 Another critical success factor that facilitates the company in attaining competitive
advantages for the reason that the prices offered by the company is cheaper and
affordable in comparison to the competitors in the market. It also focuses on providing all
the shopping experience that is convenient to all the customers within the country.
 Through selling organic products the organization is observed to obtain increased market
share. Organico works in coordination with the local suppliers along with having
increased shares with relevant industry experience relied on sustainable sourcing.
Part B
Self-Reflection on Idea Evaluation Feasibility
In analysing the feasibility of the new idea generation of Organico Company, my first
team member suggested that this business of offering organic infant foods the company must be
able to attain several effective competitive advantages based on its business model canvas

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aspects. Relied on the factors of the business aspects of the business, team member 2 advised me
that for positive business change low price and growth strategy that can be implemented within
the organization. In a situation where safety strategy was implemented within the organization,
team member 1 recommended that the new idea of the Organico can have a drastic impact and
can reach a great number of consumers in a short time frame (Solaimani & Bouwman, 2012). In
consideration to the business model canvas it can he recommended me that the company can
bring changes related with the low-priced strategy. Team member 2 recommended me that
increased price of the organic food products of the company must be maintained as this will
attain increased attention by the consumers and for this reason it can attain high revenues.
Moreover, team member 1 recommended me that the high prices should justify the quality of the
organic products. All the expenses that are set for the new idea generation of Organico is deemed
to be feasible as it comes the improved product packaging with setting a better mark-up (Toro-
Jarrín, Ponce-Jaramillo & Güemes-Castorena, 2016).
Conclusion and Recommendations
The objective of the paper was to evaluate the explanation of the consumer market
problem based on which the business Idea will be generated. It was gathered from the paper that
relied on the factors of the business aspects of the business it is recommended that positive
business change low price and growth strategy that can be implemented within the organization.
In a situation where safety strategy was implemented within the organization, it is also
recommended that the new idea of the Organico must be adequately implemented in alignment to
the business canvas can have a drastic impact and can reach a great number of consumers in a
short time frame.

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References
Caetano, A., Antunes, G., Bakhshandeh, M., Borbinha, J., & da Silva, M. M. (2015, July).
Analysis of federated business models: an application to the business model canvas,
ArchiMate, and e3value. In Business Informatics (CBI), 2015 IEEE 17th Conference
on (Vol. 1, pp. 1-8). IEEE.
Editorial, R. (2018). ${Instrument_CompanyName} ${Instrument_Ric} Company Profile |
Reuters.com. U.S.. Retrieved 24 April 2018, from
https://www.reuters.com/finance/stocks/companyProfile/BAL.AX
Joyce, A., Paquin, R., &Pigneur, Y. N. (2015). France.(2015): The triple layered business model
canvas: a tool to design more sustainable business models. In Conference Contribution.
With assistance of ARTEM. Nancy, France (Organizational Creativity International
Conference). Available online at https://www. academia.
edu/12914336/The_triple_layered_business_model_canvas_a_tool_to_design_
more_sustainable_business_models, updated on.
Lüdeke-Freund, F. (2014). Business model concepts in corporate sustainability contexts: From
rhetoric to a generic template for'business models for sustainability'.
Naggar, R. (2015). The creativity canvas: A business model for knowledge and idea
management. Technology Innovation Management Review, 5(7), 50.
Osterwalder, A. (2017). Business Model Canvas [Electronic resource]. Mode of access:
http://alexosterwalder. com/.–Date of access, 22.

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Plenter, F., Fielt, E., Hoffen, M., Chasin, F., &Rosemann, M. (2017). Repainting the business
model canvas for peer-to-peer sharing and collaborative consumption.
Solaimani, S., &Bouwman, H. (2012). A framework for the alignment of business model and
business processes: A generic model for trans-sector innovation. Business Process
Management Journal, 18(4), 655-679.
Toro-Jarrín, M. A., Ponce-Jaramillo, I. E., &Güemes-Castorena, D. (2016). Methodology for the
of building process integration of Business Model Canvas and Technological
Roadmap. Technological Forecasting and Social Change, 110, 213-225.
Viljakainen, A., Toivonen, M., &Aikala, M. (2013). Industry transformation towards service
logic: A business model approach. The Cambridge Service Alliance working paper series
(No. December). University of Cambridge.

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Appendices
Appendix 1
Key Partners
 Team of
brands and
many more
 Subsidiaries
 Advertisers
 Associates
Key Activities
 Supply chain
management
 Sales
 Direct
purchasing
 Merchandising
 Refresh stores
Value Propositions
 Supermarkets
 Home
improvement
 Wide range of
promotions and
discounts
Consumer
Relationships
 consumer
first team
organization
al culture
 Users
community
 Price based
 Consumer
satisfaction
 Being a
member of
loyalty
program
considers
attracting
consumers in
market by
means of

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offering high
discounts
Key Resources
 Anticipating
trends for
making space
for new
products
 Presence
 Brand
 Know-how
Channels
 Organic product stores
 Social media
 New delivery options
 Supermarkets
 Websites
 Coupons
Consumer
Segments
 Wide market
 Consumers
those are
price
sensitive
Cost Structures
 Presence
 Assets
 Offices
 Advertising and marketing
 Salaries
 Rent
 Maintenance
 Licenses
 Taxes
 Cost of goods
Revenue Streams
 Online sales
 Retail sales