Strategic Financial Project: Analysis and Business Plan for RaisinAble

This report presents a strategic financial project centered on RaisinAble Limited, a UK-based company specializing in fruits, nuts, and seeds. The project identifies, explores, and evaluates alternative strategies for business development, including expanding distribution channels, focusing on own-brand sales, and implementing online selling. It includes market research, analysis of the external and internal business environment using PESTLE analysis, and the development of a five-year business plan aimed at enhancing shareholder value. The report also identifies key performance indicators (KPIs) and assesses the risks associated with the proposed business plan. The project concludes with recommendations for RaisinAble to achieve its strategic goals in the competitive UK market and beyond. The reflective journal section provides a personal account of the project's development, including feelings, evaluations, analyses, conclusions, and action plans.

Running Head: Strategic Financial Project
STRATEGIC FINANCIAL PROJECT

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Table of Contents
Section 1..........................................................................................................................................3
Introduction......................................................................................................................................3
a) Identification, exploration and evaluation of the alternative strategies required for developing
the business of RaisinAble...............................................................................................................3
b) Research and findings.................................................................................................................5
Research on “real world” industry...............................................................................................5
Market research............................................................................................................................6
External and internal business environment................................................................................6
c) Shareholder value and five-year business plan..........................................................................10
d) Identification of KPIs (Key performance indicators in relation to RaisinAble Limited...........13
e) Review of the proposed business plan along with identification and assessment of risks
inherent to the plan........................................................................................................................15
Conclusion.....................................................................................................................................17
Reference List:...............................................................................................................................19
Section 2: Reflective Journal.........................................................................................................22
Description.................................................................................................................................22
Feelings......................................................................................................................................22
Evaluation..................................................................................................................................23
Analysis......................................................................................................................................23
Conclusion.................................................................................................................................24
Action plan.................................................................................................................................24
Reference List:...............................................................................................................................25

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Section 1
Introduction
The current study is conducted for focusing on the current business performance of a UK
based FNS (fruits, nuts, and seeds) company named RaisinAble Limited. The company operates
its regular business activities by sourcing, packaging, processing, marketing, and selling dried
fruits, seeds, and edible nuts to the retail market of UK. A five-year business plan is been drafted
for RaisinAble Limited to let it inform about its strategic business future. For the purpose of
preparing business plan for the company, alternative strategies as required to develop the
company are been identified, explored, and evaluated followed by a research on the relevant
market, ‘real world’ industry, along with its external and internal business environment where
RaisinAble Limited currently situated in. A five-year business plan is been set out for enhancing
shareholder value with a justified definition of the concept of shareholders value. A set of
recommendations are also been made alongside the five-year business plan followed by an
identification of the specific KPIs (key performance indicators) for assisting in the process of
measuring the extent upto which shareholder value is required to be enhanced. The entire study
is been ended with a brief review of the proposed business plan followed by an overall
conclusion.
a) Identification, exploration and evaluation of the alternative strategies
required for developing the business of RaisinAble
Business development refers to a set of activities and processes those are concerned with
preparing a business to grab probable growth and developmental opportunities by supporting the
implementation strategies associated with growth opportunities. Business developments
strategies are long-term in nature and through this, business organisations use to create a positive
image about its business operation in the minds of its stakeholders, customers, market and others.
The procedure of developing business is about identifying the interconnected networks those
could create new path or opportunities for business to experience growth (Morecroft, 2015).

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The alternative business developmental strategies required to be undertaken by RaisinAble
Limited for ensuring its business development are as follows –
 Expansion of distribution channel: RaisinAble uses to sale its products mostly through
supermarkets but for developing business, the company needs to expand its disribiution
channel by opening franchises stores. From these franchises the company will become
able to sell its own branded of healthy snacks, and baking products.
 Concentration on increasing the sales volume of own brand: For sustaining business
operation for long-run and with increasing profitability RaisinAble Limited needs to
concentrate on selling its own branded healthy snacks and baking products. With this, the
company will be able to depend on supermarkets to sell out their products (Morden,
2016).
 Implementing differentiation in existing product line: The existing product line is
required to be expanded and differentiated by adding more items to it. Some more variety
of nuts and dried fruits are required to be included by RaisinAble to its existing product
range which will be helpful for the company to expand its present customer base.
 Conducting marketing and promotional activities: The company needs to invest more
fund in marketing and promotional activities to make the customers of the UK aware of
the products it delivers. RaisinAble needs to conduct personal selling, direct marketing,
and advertisements to promote and enhance its brand image which is highly significant
for staying profitably in the market for long-run (Horkoff et al. 2014).
 Concentration on producing fruits and seeds by own: RaisinAble uses to export its
products from the fruits growers around the world which includes USA, Greece, Turkey,
Iran, France, India, Spain, and China. The company, to develop its strategic business in
future is required to harvest some of the most popular selling items by its own which will
be helpful for the company to reduce transportation cost and will increase profitability.
This will also help the company to reduce its dependency on the fruits growers residing
in aboard countries (Wheelen et al. 2017).
 Increasing the sales volume of healthy snacks: The company needs to increase its sales
volume associated with healthy snacks and ingredients which it uses to supply hotels,
food manufacturers, and restaurants around the UK.

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 Providing optimum satisfaction to the clients: RaisinAble Limited must concentrate on
providing optimum products satisfaction to its customers. For this reason, the company is
required to include some healthy and diet snacks in its existing products line and they
must concentrate on resolving queries of customers regarding its products.
 Market expansion: RaisinAble is having a good relationship with its bank and the
company is recommended to borrow a lump sum amount from bank to invest it in
expanding business in international market like USA, India, China, France and more.
This expansion will help it to capture customer attention from global arena as well as the
climate of these countries will be helpful for the company to harvest fruits, nuts, and
seeds by its own.
 Implementation of online selling mode: In the present business world, online selling
mode become intensively popular and RaisinAble is required to implement online selling
system to reach more number of customers in a one go. This will attract customers those
who are not able to go to supermarkets due to some inconveniences (Alvarez, Taylor &
Rauseo, 2015).
b) Research and findings
Research on “real world” industry
The present snacking culture of United Kingdom is pervasive where it is reported that
96% of UK people use to eat snack between meals and this is the daily habit of 69% of those
people. The habits of taking healthy snacks between meals keep energy levels up and this habit is
placed in a legitimate place in daily diet (Forbes, Kahiya & Balderstone, 2016). In the busy
lifestyle of UK people, they started concentrating on healthy snacking and it becomes a necessity
for them. Fresh fruit, nuts, chocolates, and seeds continuing to share its position as a pole
amongst the UK people’s snack choices. This snacking preference of people reveals the way
healthy snacks started to mingle with most of the people’s daily diet and menus by catering
different needs, occasions, and moods (store.mintel.com, 2018). In reflection of this and despite
the scrutiny of Public Health England on snacks, it is revealed that just 39% of the snackers use

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to look for healthy snacking options for most or all of the time. Due to the growing preference of
UK people of placing healthy snacks in their daily diet, there is a great opportunity for the
healthy snack selling company to flourish. RaisinAble is operating its snacking business by
processing, and selling healthy snacks such as dried fruits, nuts, and seeds which creates a huge
opportunity for the company to stay in the UK snack market for long-run.
Market research
In the UK market, RaisinAble Limited is a renowned name and at present, it becomes a
market leader with the facilities it uses to provide in terms of processing, packaging, and
distribution centered in the city of Bedfordshire. In the present UK market, the company is best
known for its RaisinAble branded dried fruits whereas 80% of its revenue comes from retail
sales comes from the major UK supermarket chains those who use to sell the products by
labeling those by their own brand. The selling activities of RaisinAble through supermarket is
based on renewable 3 year “call off“ contracts where the company needs to win by a competitive
tender, quality products, reliability in terms of supply and product price. The company has
specialised itself in two different sectors of retail market such as Healthy Snacking, and Home
Baking. Besides this, the company is also operates as bulk FNS (fruits, nuts, and seed) ingredient
suppliers to the UK based catering and food producing markets at a lower profit margins. It
becomes a leader in the UK healthy snacking market due to its act of fulfilling the increasing
demand for branded and healthy snacking products of the UK health sector. The market
concentrated with home baking products is partly driven by television program titled “The Great
British Bake Off” which has emerged the tendency of home baking in the UK people. This home
baking tendency of UK people accelerated the baking products selling activities of RaisinAble.
External and internal business environment
PESTLE Analysis
Political (P)

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The political stability of UK is the most favourable for any kind of business organisation
currently operating from the country. RaisinAble is capable of gaining required assistance and
support from the UK government in terms of business expansion in domestic and international
market (Ho, 2014). The current rate of corporate tax, stable political situation, government keen
towards ensuring the country’s economic growth, and supports in foreign direct investments
(FDIs) are highly significant for the companies like RaisinAble seeking for strategic business
development for future by minimising business costs and establishing new market for selling
products. The UK government has announced to reduce corporate tax rate from 19% to 17%
from 1st April 2020 which is also a great support from the government to the business
organisations seeking growth and development in future.
Economic (E)
Economic factors like increasing inflation rate, and labour cost use to create negative
influence on a company’s profitability and business operation (Laffy & Walters, 2016). The UK
has a strong and developing economic position in comparison to other developed countries. The
country has diverse economy, free market, high GDP and increasing FDIs. Large population of
the country is also supportive for the large public and private sector companies both. Besides the
positive economic factors of UK there are some issues too such as slow recovery from economic
recession, and huge amount of government spending on providing financial aid, free of cost
public service and more. The positive economic environment of UK is highly supporting and
assisting to the companies like RaisinAble to operate and expand its business successfully
(Molnár & Lendvay, 2016).
Social (S)
The United Kingdom is having the largest consumer market which is a very positive
social factor for any kind of business organisation operating through the country. The
multicultural population of the UK, free National Health Services, population density of 64.1
million, high standard of living are some of the positive social factors for which business

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organisations like RaisinAble could be benefited in short-term as well as in long-term. The
demographic factors of UK customers such as age, education, level of income, culture, and social
background are also playing influencing role in terms of providing benefits to the companies
(Alava & Mu, 2018).
Technological (T)
UK is a highly technologically advanced country around the world where London stands
as a great hub for technological and financial institutions both. Business organizations located in
the country are frequently improving and developing with the support of new technologies by
offering best solutions to the customers. The advancement in technological infrastructure of the
UK offers unlimited opportunities to the entrepreneurs to continue business within the country.
The technological factors of UK include quality innovation skills, science and IT expertise,
effective intellectual property laws are helpful for companies like RaisinAble to ensure its
strategic development in the coming future.

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Figure 1: Components of PEST Analysis
(Source: Pan, Chen & Zhan, 2018)
Environmental (E)
The concentration of UK government, and local councils in creating environmental
awareness amongst people and in reducing negative influence of the country’s economic
development on its environment is also a supportive factor for the companies located within the
country. The more the environment become agriculture friendly, the great it will be for
RaisinAble to harvest fruits, seeds, and nuts by its own by reducing its dependence on abroad
countries.
Legal (L)
The employment act, minimum wages act, trade law of UK is supportive for the business
organisations operating from this country. The current legal condition of the country is favorable
for the companies like RaisinAble which is required for developing business operation and
experiencing growth in future (Theaker, 2017).
SWOT Analysis
Strengths
 Market leadership
 Strong brand image
 Well maintained annual profit
 Branded baking products
 Environmental friendly reputation
 Organic fruits, nuts, and seeds
 Biodegradable packaging
 Good current ratio
 Sufficiency of cash to meet working
Weaknesses
 Dependency on aboard countries like
USA, France, Greece, Turkey, Spain,
China, and India
 Lack of infrastructure for harvesting
fruits, nuts, and seeds by its own
 Tough market competition from the
companies those use to place tender to
the supermarkets from where 80% of
the retail sales revenue of the company

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capital requirement
 Increase in own branded healthy snacks
and baking products
come
 Inability to optimise usage of
production equipments at 100%
 Higher operating cost where a large
part is associated with import cost
Opportunities
 Technological advancements and
growth of UK
 Decline in the currency rate of Turkey
which is the main source of dried
apricots and sultanas
 Support of UK government in respect
of foreign direct investments
 Reduction in the price of pumpkin
seeds (organic and conventional both)
in international market
 Good harvest of pumpkin seeds
Threats
 Increase in exchange rate of US$ / £
sterling for which overall cost of sales
will increase
 Rise in import price associated with
sunflower seeds
 Tough market competition (Fleisher &
Bensoussan, 2015).
c) Shareholder value and five-year business plan
Shareholders value
Shareholder value refers to a business oriented term which implies that a company’s
ultimate measure of success depends on the extent up-to which the company uses to enrich its
shareholders. This particular value is delivered to a company’s shareholders because of the
ability of its management to increase earnings, sales, as well as free cash flow during a certain
period of time (Tantalo & Priem, 2016). This lead the company’s ability to increase the amount
of dividends it uses to pay its shareholders and encourages the amount of capital gains for the

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equity owners it has. Increasing volume of shareholder value uses to increases the amount
associated with stockholders' equity in a company’s balance sheet (Fernandez, 2015).
This value is enjoyed by the shareholders of a company (here, RaisinAble Limited) by
possessing equity shares of that company. For the management of RaisinAble Limited,
increasing the company’s shareholder value is one of its prime important tasks. Customer
satisfaction is also linked with shareholders value which contributes in the company’s sales
growth and profit generation (Singh & Pattanayak, 2014).
Manufacturing or food processing companies like RaisinAble continues to look towards
the ways for achieving greater success in business operation for short-term as well as for long-
term. For increasing shareholder value, companies need to measure its financial growth, annual
profit, market share, return on investment and similar (Epstein, 2018). Followings are some
fundamental ways by undertaking which RaisinAble will become able to increase its
shareholders value –
 Increasing the selling price of per unit product to increase revenue from sales
 Selling more units to increase sales revenue to create the chances to gain an
increased amount of profit
 Reducing per unit cost of each product which will help the seller company (here,
RaisinAble Limited) to increase profit volume
 Increasing the utilisation of fixed cost (for RaisinAble, increasing the utilisation
of production equipments) (mnp.ca, 2018)
Five-year business plan
Actual Business Plan
Sales volumes ('000 Kg) 2018 2019 2020 2021 2022 2023
Healthy Snacks -
branded
2,165 2,158 2,150 2,143 2,136 2,129

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Healthy Snacks -
supermarket own label
10,405 10,812 11,236 11,654 9,952 9,788
Baking Products -
Branded
4,191 4,093 3,996 3,902 3,810 3,721
Baking Products -
supermarket own label
24,276 24,156 24,037 23,919 23,801 23,684
Ingredients 16,744 16,325 15,916 15,518 15,129 14,751
Income Statement
Total Revenues (£'000) 126658 127144 127706 128268 121214 119715
Direct Costs 108928 114916 112657 112457 103150 102207
Gross Profit 17730 12228 15049 15811 18064 17508
Sales & marketing 1833 1846 1820 1795 1770 1746
Overheads 10797 11099 11260 11454 11611 11820
Operating Profit 5099 -717 1968 2562 4682 3942
Interest and Tax 1302 327 878 1006 1422 1276
Profit after Tax 3798 -1044 1091 1556 3260 2666
Gross Margin (%) 14 10 12 12 15 15
Net operating margin
(%)
4 -1 2 2 4 3
ROCE (%) 7 -1 3 4 7 6
Net Debt / Equity (%) 0 15 18 18 16 18
Net Cash Balance 19986 12992 11690 11885 12625 11606
Table 1: Five-year Business Plan
(Source: Created by the researcher)