Starting a Plant-Based Food Business: PESTEL, Legal, & Economic

This report provides a comprehensive analysis of starting a plant-based food business in the UK. It includes a PESTEL analysis, evaluating political, economic, social, technological, environmental, and legal factors influencing the business. The report also assesses the legal frameworks, such as the Food Safety Act 1990 and GDPR, discussing their strengths and weaknesses. Furthermore, it explores various sources of finance for startups and identifies key sectors contributing to the UK economy, highlighting opportunities for plant-based food businesses. The analysis emphasizes the growing demand for healthy and organic food, driven by changing consumer preferences and health consciousness, and suggests strategies for new businesses to thrive in the UK market. Desklib is a valuable resource for students seeking similar reports and solved assignments.

The Structure of
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTION 1 .........................................................................................................................3
PESTEL Analysis which impact the potential start-up of plant based food business in the UK 3
QUESTION 2...................................................................................................................................5
Evaluate the range of legal framework which required to implement at the time of starting new
business and discuss its strengths as well as weakness................................................................5
QUESTION 3...................................................................................................................................7
Various sectors that contribute in UK economy..........................................................................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Structure of business define that how organization perform their operational activities.
Managers of the company define the task, make coordination, provide directions etc.
Organizational structure further impact the operational activities so management need to focus
on executing strategies and follow the standards (Bidabad, 2019). This report based on the case
of business idea for plant based food business. This assessment cover the various topics such as
PESTEL analysis and which factors impact the potential start ups of plant based food business.
In addition, it includes the legal framework which implement by the company and identify the
HR policies which required for modern place.
QUESTION 1
PESTEL Analysis which impact the potential start-up of plant based food business in the UK
PESTEL Analysis: It is the framework or tool which is used by the corporate in order to
identify the external factors which can affect the overall production as well as profitability of the
company. In order to develop effective strategies, managers of the company evaluate the external
factors such as political, social, economic, legal, environment and technological. It helps in
analysing that what are the opportunities and what are the threats for the organizations and it will
be considered at the time of making future strategies for the growth & development. These
factors discussed below:
Political factors: This factor include the government regulatory framework which affect
the plant based food business across the UK. It include the cleanlinesses of food at the time of
cooking and use organic seeds to produce plant foods. Organizations should follow the standards
or producing, storing and transporting products. Political factors includes the political stability,
government rules, foreign trade or tax policy, trade restriction etc. These factors will impact the
potential start-up of plant based food business (Colli and Colpan, 2016). UK has stable politics
which is an opportunity for the potential start up to enter in plant based business. Recently, vegan
trend increases so government will make strategies and other policies to encourage people to
entered in plant based food business.
Economic factors: Growing disposable income impact the plant based food business
because increase in the income make people concern about their health and they ensure to
consume healthy and organic food which is plant based. Basically economic factors includes the

growth of overall economy, exchange rate of currency, disposable income, inflation etc. These
factors will impact the potential start-up which planning to entered in plant based food business.
Social factors: This factor impact the most because consumer taste and preferences
regarding food was frequently changed which impact the production as well as revenue margin
of the food company. Currently healthiness is the major focus area in the UK so government will
ensure that plant based food business follow all the standards and food policy. Change in the
consumer lifestyle will increase the craze of organic or diets food. Vegetarian, vegan and
pescetarian eating are become lifestyle choice in order to make them fit & healthy. Specially
younger generations are the targeted customers who prefer brands & vegan products. This social
trend will provide the great opportunity for the plant based food business in the UK.
Technological factors: This factor provide the competitive advantage through adopting
latest technique or innovation which provide them huge success in the market. Technology is
essential for the food labelling, packaging and producing food (Cristani and et. al, 2018). By
using technology for the promotion or marketing of vegan food is very important because they
are the small start ups so they need to make people aware about their plant based food business
and build effective promotional strategy to attract them through giving awareness about their
food features.
Environmental factors: It include those factors which impact the whole market of food
industry. Meat is the factor that affect the business because it required lot amount of water and
generate carbon footprint. Meet industry is tearing down the huge number of forest to generate
new space for farms. In result, more and more people shift on plant based diets and focus on their
health as well. On the other hand, government will slowly take the interest to make people awrae
about the plant based food. It is the great opportunity for the potential start-ups to run their
business in the plant based food.
Legal factors: It includes the legal laws & regulations which is food based company
need to implement in order to run their business smoothly without any government interference.
Food safety standards which included that how food producing company store, transport and
deliver the food to the customers. Plant based food business which offer vegan products which is
more heather, so they need to ensure that they follow all the safety instructions to make it more
healthier (Crow and Lockhart, 2016). So potential start-ups of UK in the plant based food
business have to concerned about food safety and follow all the standards as well for the growth.

QUESTION 2
Evaluate the range of legal framework which required to implement at the time of starting new
business and discuss its strengths as well as weakness
Food Safety Act 1990: This act pass in the parliament of the United Kingdom and
organizations has statutory obligations regarding food safety and focus on human consumption.
Plant based food business have to implement this legal regulations in their organization and
follow all the standards regarding food safety. It is difficult for the potential start-ups to
implement this act because it required lot of experience and monitoring of food. Every
framework has some strengths as well as weakness which business has to bear and make their
strategies accordingly. Some of them discussed below:
Strengths:
 This legal framework protect the health of consumers and ensure that each food item
follow the basic standards.
 This framework help the business to implement food technology which improve the food
quality and reduces their time.
Weakness:
 Consumers loss the confidence if they food business unable to implement or manage the
food safety instruction (Hassen, Turki and Gargouri, 2016). In Food, Drugs and
Cosmetics Act define the each action and how to perform to get that quality product.
 Currently, it become impossible for the food company to imagine that situation where
FDA acknowledge the need to request a dangerous food and still it is available in the
market. It will happen because manufacturer refuses to co-operate with these standards
and framework but FDA (Food & Drugs Administration) has power to seize the entire
manufacturing business.
GDPR (General Data Protection Regulation) framework: It is the legal framework
which set some guidelines which help them to collect the personal information of those
individuals who live in the European Union (EU). This framework used to manage consumer
data and protect their rights, data transfer etc. This legal framework has some pros & cons which
organization need to consider and some of them mentioned below:
Strengths:

 Organizations unable to avoid cyber security so they required to implement GDPR
framework and it helps in achieving or maintaining high level of data security.
 Data breaches and leak of consumers information is the serious action which impact the
reputation of the company as well as it reduces the confidence of customers. That is why
organization use this framework to secure data.
Weakness:
 Cost of compliance GDPR framework is the organization is the biggest drawback
because every business unable to afford this cost (Hentrich and Zdun, 2016). Companies
unable to update their policies because it required lot of time, cost and efforts. In order to
process data business need to hire Data Protection Officer in order to maintain privacy of
data.
 Companies have to pay major fines due to non-compliance of GDPR principles. Business
organizations can be penalized up to € 20 million or 4 % of annual turnover whichever is
high in case of non-compliance.
Sources of finance for start-ups:
There are various sources of finance which can be adopted by the organizations in order
to fulfil the working capital requirement. Business able to perform their operational affectivity
and achieve desired goals & objectives. Some of the source of finance for the start-ups
companies are mentioned below:
Personal investment: It is the personal savings of an individual which they used in the
business as capital in order to execute their business plan (Lamine and et. al, 2018). Through
investing their personal saving, businessman take the risk arrange the funds for their start-ups
business.
Government grants & subsidies: Government agencies also provide the finance in
terms of grants and subsidiaries. It is the another source of finance which able the organization to
perform their operational activities.
Bank loans: It is the commercial institute which provide the loan to the new start-up in
order to meet their financial needs (Merigó, Rocafort and Aznar-Alarcón, 2016). It is the most
common source of finance which is used by the individuals to fulfil the requirement of money.

QUESTION 3
Various sectors that contribute in UK economy
In the year 2015, the UK economy was the second largest economy in Europe and with
GDP number five in the world about 2.848 trillion USD in 2015. The economy of UK is hit hard
due to face financial crisis at the end of past decade. With several attempts at challenging the
economy due to cutting down on public expenses and increase taxes was it possible for United
Kingdom to get back to a stabilized, albeit weakened economy. Additionally, the pro Brexit vote
in June 2016 has developed doubt that effect on the British economy. In present time it is still
growing although not as fast as originally expected (Richard and McFadden, 2016).
The UK have strongest sector is service sector where organise this business idea easily
and UK government can help to provide fund and remove all the difficulties. The economy of the
UK, today is irresistibly fuelled due to strength of its service sector that accounts about for some
79% of the total GDP. It is most essential sector where consist of banking, insurance and
business services. Most of the biggest names in this sector in the UK are household that popular
in world wide. It is opportunity for plan based food to introduce their plan in the service sector
and open a restaurant and provide food services to customer who like vegan food and prefer in
daily life. In this sector people easily recruit and have experience regarding to this sector. The
ready to work in same place and other place in home country. The UK among the most
globalized places in the world which have ranking about 20th in the year 2016. There is defined
another sector where start the business like manufacturing sector and retailing sector.
In agricultural sector they are produce finished goods where people come to learn organic
farming and how to beneficial for the daily life. It impacts in positive manner on the health and
stay fit. Food is important for life that known as basic need and people wants to healthy food for
long time fitness. There are use seeds for growing vegetables and sell out in the vegetable market
to provide good food to people. This sector is important for the UK economy because of
agricultural sector increase rapidly that impact in on the UK economy (Rossetto and et. al, 2018).
In present time people conscious for the health so they are awaking about the food and origin.
This sector important for the economy that provide foods to people and invest money in large
manner. As a result increase transactions and money fluctuation start in the market. So it is
valuable for the economy and present all the positive outcomes effectively. With less than 1%
agriculture may be the least essential sector in regard of GDP contribution, but it is still of broad

essential for Britain and Northern Ireland. As agriculture is not only highly mechanized and
qualifier enough to meet approx 60% of the food demand of the entire nation.
In the context of manufacturing sector, make different food products like juice and other
things and for this open a new store where freeze all the food items and sell out online to all the
super market, restaurants who open vegan restaurants for the customers (Sedlak and et. al, 2016).
Many people like to eat vegan food so they are purchasing items from these online sites in bulk
because there are selling products in bulk otherwise not. This sector still plays essential role in
the UK economy and arrange to contributes 21% to the GDP. The UK is the world's 11th largest
manufacturing nation and some of the sector's situated and their headquarter in the UK which are
the major importance on a big level, particularly the civil and military aerospace industry.
Moreover these stores are paid taxes on time provide basic things to people on time.
After analysing the different sectors it is deciding that invest in service sector where
people happily visit into restaurant and fulfil the demand as per the requirement. All the sectors
can play essential role in UK economy and according to that conduct business activities
effectively (Zhou, Yang and Shao, 2016).
HR policies: HR policies are the formal rules as well as guidelines that based on the
business activities and put at the place to hire, train, examine and reward all the members. These
policies are utilised by the business to manage and circulate an easily used form. It is also known
as the body of principles and regulations that conduct and govern by business to maintain
relationship with the staff members. These policies are important at the modern work place and
require to follow all the legislation the set by the government for their employees.
 Health & safety policies: At the modern work place, health & safety regulations are
required to effective run all the business activities. A employer responsibility to keep all
the staff members safe from the hazards that arise in the business environment and impact
in negative manner on employees health (Smith and Rönnegard, 2016). The HR
department of any organisation can make different policies for the employee safety and
according to that make different strategy and set regulations by the US occupational
safety and health administration (OSHA). These policies are related to major injuries,
provide all equipment in the manufacturing industry etc. The importance of this policy to
make sure for the safety in any case of fire, earthquake etc. these approaches are working
in positive way and workers are feeling safe in the particular criteria.

 Equality & diversity policies: Every person get position according to their knowledge so
at the work place no create any diversity policies that impact on the work structure and
fall down moral of employees. In modern time provide equality to all the employees
regarding to wages and working hours. The UK government set some act regarding to
these policies. It is defined as a written contract where company avoid the discrimination
against people and how will develop safe and inclusive environment for the members and
service users. It is essential because it provides equality at the work place and motive for
the work in they make effort to complete task on time (Velu, 2016).
Reflective statement
To prepare of this assignment require to conduct deep research and collect more
information about plan activities and how many people take interest in vegan food. Due to my
research it is analysing that about 7% people like vegan food but it increasing and reach on the
11%. So this business may be get success in future by chances will be 50-50%. For this
assignment face difficulty to collect all the relative information because it is typical to collect
information about the Vegan food and interest of people. In present time mostly people like meat
but slowly people become health conscious. As a result they are taking interest in food plant and
their quality. As per the my point of view, for this assignment require to collect information
about different sector and in which sector it impact in positive manner on UK economy. It is
analysed that Service sector is good for new start up and it become strength for the organisation.
The other sector like manufacturing, retailing is also good for the start up. For the start up require
to fund but most of the financial institution have no idea about this business so they are not easily
ready for the investment. To conduct PESTLE analysis require to collect information in
regarding of different factors and how to impact on the business activities in positive or negative
manner. For this conduct research and analysis about UK economy how to fluctuate in different
situation. It became difficult to collect all the information and write according to assignment.
CONCLUSION
As per the discussion it is concluded that plant or food is good idea but it is mainly based
on resources utilisation that arrange by the business. For this start up require to conduct PESTLE
analysis where analysis all the factors which are in favourable or unfavourable. According to that
new start up prepare a strategy and focus on all the activities. There are analysis all the options to
collect fund for start business and conduct further activities. To start a business identify all the

sectors and select best possible which is service sector and provide services to customer and
attract for the start up. In present time HR department aware for the employees and develop new
policies which is beneficial for the staff members. At the end reflect on the whole assignment
and what was the experience to written it.

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