Sage Eatery: Business Operations, Expansion and Environmental Plan

This report details the business plan for Sage Eatery, an organic food retailer, focusing on its operating procedures, environmental management, and expansion strategies. The plan includes an overview of current business operations, relationships with suppliers and customers, and a discussion of the expansion plan, which involves new store expansion, online platform development, and product diversification with family meal packages. The report also addresses staffing adjustments, potential threats to future operations, and proposes solutions. It further outlines the company's environmental management plan, emphasizing resource efficiency, environmental impacts, health and safety issues, and social impacts. Finally, it provides a budgeted cost analysis for various expansion areas, including store rent, salaries, recruitment, website design, and packaging. The report concludes with a reference list of sources used.

Table of Contents
OPERATING PLAN.............................................................................................................................................3
The current business operations........................................................................................................................3
Relationship with suppliers and customers.......................................................................................................3
Discussion of the Plan.......................................................................................................................................3
Adjustment of Staffing......................................................................................................................................4
Threats to Future operations and possible solution...........................................................................................4
Budgeted Cost...................................................................................................................................................4
ENVIRONMENTAL MANAGEMENT PLAN...................................................................................................6
Resource efficiency...........................................................................................................................................6
Environmental impacts......................................................................................................................................6
Health and safety issues....................................................................................................................................6
Social impacts...................................................................................................................................................6
What are the budgeted associated costs?...........................................................................................................6
References.............................................................................................................................................................7
1

OPERATING PLAN
The current business operations
Sage Eatery exists in the North Brisbane Shopping Center name known as Virtual Lakes. The store is situated
on the first floor of the complex and centrally located. For this reason, the company enjoys is enjoying a
significant amount of exposure to the potential customers. At present, there are a total of 19 rivals opposing of
the businesses at present in the complex. Of these 19 opposing stores, there is one rival organic food store
considered to be our main competitor – Foodies Market. Despite the seemingly high level of competition,
Sage Eatery continues enjoy a steadily increasing profit margin of XX (I will add these when calculated). This
is thanks to our unmatched ability to provide high quality products and services at favourable pricing – further
complemented by our intricate marketing techniques (Andel, 2018) (can this reference still be used).
Relationship with suppliers and customers
Australia has always been at the forefront of the organic food market. In 1944, we formed the first agricultural
group in the world to label itself as “organic” (refer source 2). Since then, the markets popularity has grown
beyond being a niche trend for the wealthy; organic eating for a healthy lifestyle is now a significant
consideration for all Australian’s. As such, Sage Eatery aims to provide its product and services to the wider
community as opposed to strictly targeting the financially superior working classes. This is shown through our
ability to differentiate between standard and premium quality ranges with varying affordability. (I replaced the
whole existing paragraph as I believe this to be better written – note, the company was not established in 1944
as the writer’s introductory sentence hinted; it is a fake business that has only been operating for two financial
years. I am happy for more to be added but please watch the use of language).
The company is now planning to introduce new products such as family meal package and corporate event
meals. This will help them to form relationships with the new customers such as corporations that were not
targeted before (Chambers & Humble 2017). Furthermore, the family meal will target the entire family and
wide community and not only a young generation or unwell people (I don’t believe an existing product range
2

of organic food would have been targeting a young generation/unwell people?).
The company has a good relationship with the supplier of the organic products. In addition to this, the
packages that the company is introducing will help it in forming a relationship with new suppliers that offers
meals in the packaged way (The existing supplier will be used for food products. There will need to be a new
supplier for the packaging of the existing food range. It would be great to make reference to sourcing
environmentally friendly packaging through a new supplier relationship)
Discussion of the Plan
The plan of the company is to expand its business in three different ways and protect their service by
expanding in the market in unique ways (please review wording). Expansion is one of the best strategies that a
business takes to experience growth. One expansion is new store expansion (please review wording) through
which the company will target expanded market and also increase their exposure (Brinckmann, 2018). Second
is to enter online platform through which the business will offer better customer service as customers can buy
the product in an easier way. Thirdly, there is product expansion in which the customers will get better
product option to buy from and stay healthy (this will not be a better or healthier option. Rather, just to cater
for simplicity for families by providing a pre-prepared meal package and it may force healthier alternatives
into the corporate market)
Adjustment of Staffing
Sage Eatery will need extra staffing for the expansion it is taking in their service and products. The company
already owns a good amount of staffs in the business for various needs (please review wording – I have
included the existing company introduction at the end of the operating plan for reference). For the new
expansion, they will need extra staffs (please review wording). A good amount if a salesperson, accountant,
and guard (not required) will be required for their new store that they will open (McKeever, 2016). The store
will require these staffs to take care of the sale and the customer service. Further, for online expansion, the
company will need a website designer, customer service staffs for online customers and also third-party staffs
to deliver their products to the customer. Lastly, they will also need training staffs to train the selling team
about the new products that they are introducing such as meal package.
3

Threats to Future operations and possible solution
The business will face few threats in their future operation more complexities in the business and staffing may
become a huge problem if not place adequately. In addition to this, there will also be issues such as an
increase in the transparency of the business due to online media (Scarborough, 2016). The feedback received
by the customer can then be clearly seen by other customers and negative comments might impact the
reputation of the business in a great way.
Sage Eatery needs to plan and strategize their expansion initiative to cope up with these two threats. Firstly,
the staffing should be well planned from before and the business should maintain some extra staff in every
department to eliminate risk (Eskelin & Barclay 2015). Further, better employee benefit should be given to
staffs compared to the competitors so that they face minimum employee turnover.
For coping up with the transparency of online environment the company should provide continuous customer
service and minimize negative comments.
Budgeted Cost
The company needs finances to manage their cost in all the type of expansion that it is taking. The budget will
be required in various areas of the business in which the business is expanding (McKeever 2016).
Areas Cost
Rented Store $10,000 per month for one year
Salary to Staffs $3000 per month for six months until the revenue is
not generated
Recruitment cost $8000
Payment to website Designer $7000
Packaging cost $19,000
The above table shows an estimated cost that the business will require for the specific areas required for
4

expansion.
Sage Eatery is a relatively new company based in the progressive town of Virtual Island. The business
specialises in organic food retail offering a variety of health-friendly products in both premium and standard
quality ranges. In response to a steady increase in working capital (as evident in the enclosed financial
statements), the business endeavours to expand its opportunities through further developing the existing
product range, distribution channels and both its physical/online presence. In order to facilitate this proposed
expansion, we are seeking financial support in the form of a $XX,XXX loan financed at a X% interest rate.
Upon acceptance of the requested agreement, the business expansion proposal will be governed by the
company's existing management team, comprising of; Michael Catterall (speciailising in
operations/environmental management), Megan Hodgson (head of marketing/strategic operations), William
Collard (lead manager of financial affairs) and Ryland Clarke (responsible for analysing business
performance). Our capable management team expects that by pursuing the above opportunities (with the
assistance of additional loaned monies), that Sage Eatery will be able to increase its current profit margin
(XX) significantly to a rate which would exceed that of the already attractive 10% proposed annual growth for
the region.
(existing introduction for reference only)
5

ENVIRONMENTAL MANAGEMENT PLAN
Resource efficiency
The efficiency of the resources will be improved with the expansion strategy of the business such as store
expansion, online expansion, and meal packages. This is because the supply of organic food will increase by
making efficient use of resources and having minimum impact on the environment (this is not a reason to
justify the business having more efficient use of resources. Perhaps discuss the bio-degradable packaging
used for the new products and the fact that the product range is being expanded (to packs) without adding
new food products to the existing range.
Environmental impacts
As the business sells mainly organic food it will have minimal impact on the environment (Chambers, 2017).
The expansion will help the economy to use organic foods and this will reduce the negative impact on the
environment (please review wording. The fact that they are selling organic goods will not mean they are
having minimal environmental impacts.
Health and safety issues
With the expansion of organic food in the market, the people will be more health conscious. This will reduce
the health issue among the population in the economy.
Social impacts
The online expansion will enable Sage Eatery to provide its organic product to the wider community and
have a positive impact on the well-being of the community in a better way (Eskelin & Barclay 2015). Family
meals package will help the community to eat healthily and stay healthy.
What are the budgeted associated costs?
The budget forms the most important aspect of the plan as the cost is required for every kind of expansion
that the business is taking. The estimated budgeted cost for the expansion plan is $ 2, 00,000.

References
Andel, J., Foos, A., Brenner, R.E., Huebschwerlen, B., Miller, S.E. and Piston, A.W., 2018. Operational
Plan: Migration, Tagging Response, Distribution, and Inriver Abundance of Taku River Sockeye Salmon.
Brinckmann, J., Dew, N., Read, S., Mayer-Haug, K. and Grichnik, D., 2018. Of those who plan: A meta-
analysis of the relationship between human capital and business planning. Long Range Planning
Chambers, I. and Humble, J., 2017. Plan for the planet: a business plan for a sustainable world. Routledge.
Eskelin, T. and Barclay, A.W., 2015. Operational Plan: Upper Cook Inlet Commercial Eastside Set Gillnet
Chinook Salmon Harvest Composition Study.
McKeever, M., 2016. How to write a business plan. Nolo.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management. Pearson.