Strategic Management: Developing a Business Plan for Organic Farming

This report presents a strategic management plan for an organic farming startup named 'Eat Healthy, Stay Healthy,' focusing on providing healthy, organic food to address the declining health of the population due to chemically produced food. The 5-year business plan outlines a systematic approach to achieving the company's goals, covering key decision areas such as the business environment, vision and mission, financial feasibility, and product and service offerings. It includes a SWOT analysis, marketing and sales strategies, customer management, pricing, and financial forecasts, emphasizing eco-friendly practices and sustainable development. The plan aims to establish a strong customer base, increase market share, and achieve long-term profitability through customer satisfaction and adaptation to changing market demands. The initial focus is on cost-cutting measures and building trust through workshops and local event sponsorships, with a gradual shift towards profitability after the first two years.

Strategic management

Table of Contents
Introduction..........................................................................................................................4
 Business Environment.............................................................................................5
 Goals, milestones, strategies.................................................................................9
 Business competition.............................................................................................12
 Financial forecasts..................................................................................................14
Conclusion.........................................................................................................................15
References..........................................................................................................................16

Executive Summary
The central idea behind starting an organic farming startup (Eat healthy, stay healthy) is
the draining health of people. With the advent of chemically produced food in the
houses, the health and fitness level of people is continuously decreasing that is leading
to serious health problems. The fountainhead or the childbirth of the plan is the motive
to serve the society by contributing in health of the people. Here, it is an noble initiative
to provide people healthy food which results in overall health improvement and
contributing to nations growth. The 5 year business plan will provide a systematic guide
and blueprint to the venture that will help in attaining the goals of eat healthy, stay
healthy. The plan will cover all the decision area that will directly or indirectly have an
effect on eat healthy, stay healthy. It is comprising of the following decision areas:

Introduction
In this business proposal plan assignment, the production of organic fruits and
vegetables is taken as a special area of reference. The business proposal plan will
cover all the essential factors that must be kept in mind before starting a new enterprise
or business. The factors or the decision criteria vary from a number of areas. It would be
coving the decisions regarding the business environment, deciding the vision and
mission, financial feasibility decisions, decision regarding the products and services,
goals and practices of business. It would include a in-depth analysis of strength,
weakness, threat, opportunities etc. the report also consists of the key factors like
marketing, sales, distribution, public relation management, cooperate social
responsibilities etc. It is covering all the decisions regarding the pricing and cost
involved in set up of the business.
The special reference is given to the organic farming industries and the eat healthy and
stay healthy is the name of the start-up enterprise. The 5 year business plan will help in
forecasting the need and future of the business organisation

Business Environment
The environment which bounds or covers the structure of the business is known as
business environment. It comprises of all the forces and factors which can have an
effect on the enterprise. It covers the core or the central ideas for which the enterprise
is carrying on its activities. It covers the decisions regarding the following points and the
factors associated with it (Entrepreneur, 2018). These are as follows:
 Vision, Mission and goals
 Products and services
 Business, organisation and finance structures
 Strength, Weaknesses, Opportunities and Threat (SWOT) analysis
 Premises, plant and equipment

 Information systems and telecommunications
 Intellectual property, licenses and memberships Insurances
 Vision, Mission and goals: The long reason or the central idea for which the business
is running is known as the vision of the business. There is a separate vision statement
for every business organisation. At eat healthy stay healthy, the vision statement is
improved health of people. The operations are done for attainment of this vision only
(Bplans, 2018).
On the other hand mission is a sat of supporting activities which are focused at attaining
the vision. 100% organic food production is the mission of eat healthy stay healthy. The
continuous set of activities that are done to achieve the mission is termed as goals. Use
of organic seeds, organic farming practices and timely distribution is the focus areas.
 Products and services: Eat healthy stay healthy, will provide a wide range of organic
fruits and vegetables to people. The products will include all the seasonal fruits and
vegetables at a nominal cost. On the same side eat healthy stay healthy will provide
paid consultancy to people regarding the easy steps and practices of doing organic
farming at home. It will help in creating a trust factor and faith in minds of the customers.
If the response is good by the people then, eat healthy stay healthy trends to expand its
area of operations.

 Business, organisation and finance structures: The scale of eat healthy stay healthy
would be a small scale. Initially, the main area in which the focus is lying is cost cutting.
The involvement of cost saving practices will help in attaining optimal utilization of
resources.
The structure would be a flat type which would help in free and easy flow of ideas and
communication. The main sources of finance would be some personal savings of $ 7 k,
crowd funding of $2k and loan from bank of $ 1 k.
It will include collection and donation from public.
 Strength, Weaknesses, Opportunities and Threat (SWOT) analysis
Every business organisation is bounded with certain threats, strengths, weakness and
opportunities and same applies to healthy stay healthy. Here is an analysis of it:
Strengths
Motive to serve people.
Use of eco-friendly activities.
Weaknesses
Lack of business expertise.
Limited number of resources.

Fresh and healthy products.
Easily approachable.
No prior business experience.
Inexperienced working force.
Opportunities
Organic farming is on a rise.
Increase in awareness of people.
More health freak people.
Wide area of expansion.
Government subsidies.
Threat
High number of competitors.
Increase in rules and regulations
Harsh climate.
Involvement of high cost.
 Premises, plant and equipment
Being working in a farm based industry, there is no to nominal rules and regulations
involved in it. It only involves registration of the startup, and some other formalities. For
the production of fruits and vegetables, there are direct tie ups with the farmers which
eliminates the requirement of land and cuts down the cost. For the storage of fruits and
vegetables, there is a requirement of warehouse or go down kind of place.
 Information systems and telecommunications

There is a need to communicate with the farmers so the production activity can go in a smooth
flow. Once the produce is ready, the representative will collect it from the farmers and
then distribute it to the wholesalers and retailers from there it can reach to its final
consumers. There would be proper communication between the farmers, representative
and the distributors.
For keeping an eye on the availability of articles and the stock management information
systems would be used by the experts which would reduce the overlapping of work and
ensure optimal utilization of resources. Use of computers will help in systematic
arrangement of data.
 Intellectual property, licenses and memberships Insurances
The logo, USP, and assets of eat healthy stay healthy is a subject of copy right. The
permissions are required from the government and certain licenses are also required.
All the legal formalities will be completed in presence of a legal expert only which will
ensure that all formalities are properly complete.
Goals, milestones, strategies
The targets and goals for which eat health stay healthy is working is to provide people a
healthy lifestyle through the means of organic food. the central points of it are as
follows:
 Goals and milestones

 Marketing
 Sales
 Customer management and retention
 Pricing
 Suitable business strategy
 Goals and milestones: The primary goals of eat healthy stay healthy is to gain the
trust of people which would help in long term relationships and increase in sales. For
building the trust, eat healthy stay healthy is conducting workshops and sponsoring the
local events.
 Marketing: Positive word of mouth is the best means of marketing. For this, eat healthy
stay healthy is continuously working towards increasing customer satisfaction.
Pamphlets and holding advertisements are also used to brand the company.

 Sales: Sales targets can be achived by increase the market share and by positioning of
the product. As the operation is of multi dimensional that is providing consultancy and
delivery of organic food, the loss in any department can be covered up by the other one.
Initially, it is tough to meet the targets but gradually with passage of time it can be meet.
 Customer management and retention: Once the trust is developed, the customers
loyalty can be achieved. Two loyal customers are better than five non regular
customers. Proper database of the customers would be maintained and additional value
added services would be provided to the customers to retain them. The value added
services would include discounts on price, free delivery, membership cards, free
coupons etc (Businessnewsdaily, 2018).
 Pricing : The price of the products would be nominal and once the customers started
likening the product then eat healthy stay healthy will go for the high profits. The prices
would be less than the competitors that would help in attracting the customers and
doing mass publicity.
 Suitable business strategy: Eat healthy stay healthy is working for the social cause
which will help in gaining support from the masses. The business practices are
completely eco-friendly which helps in attaining the long term sustainable development.
Regular modification and updation will be done to meet the changing scenario and
demands of the customers.

Business competition
Every sector of the economy is facing the competition. To meet up this competition and
to have an edge over the others, a set of practices are used so that eat healthy stay
healthy can survive and sustain in the market. The following points must be considered
while drawing the activities:
 The industry
 Target market
 Market competition
 Influence of Five forces
 The industry
The farm based industry is still not facing that much tough competition. The industry
mainly deals in production work and selling of the produce.Polatory farming is also a
new trend in the industry.
 Target market
The target market of eat healthy stay healthy is the health freak crowd, upper class and
upper middle class who are ready to spend much for their health. Sports personalities
can also be targeted as they too are conscious about their health and organic food
boost the health of people (Mindtools, 2018).
 Market competition

Many players are present in the organic food industry but there is no one’s monopoly.
The market competition can be survived by building strong customer base which would
help in increasing the market share of eat healthy stay healty. If the customers are
satisfied with the products and services then eat healthy stay healthy can survive any
competition( Inc., 2018).
Short term plans to beat the competition are early discounts, value added services,
mass marketing and free home delivery.
 Influence of Five forces
There are five forces of market which affect the business. These are:
 Threat of new entrants
 Threat of substitutes
 Bargaining power of customers
 Bargaining power of suppliers
 Industry rivalry
The effect of above mentioned forces can be minimized by taking the corrective
measures and pre applicable approaches. It includes strong market and customer base,
analyzing the changing scenario, forecasting the future trends, experts panels ,
improved goods and services to the customers (Cleverism, 2018).

Financial forecasts
Finance is the backbone of every business organisation. No one wants to run out of fuel
and ignition. A proper financial planning is required for an strong business operation.
The financial forecast includes the following:
 Set-up costs
The set up cost of eat healthy stay healthy is very less as don’t involves any direct huge
payment. The purchase of the produce from the farmers and distributing it to the
suppliers. The warehouse is taken on rent for $150 per month. In the same ware house
a small office is maintained where the management information system can be settled
and other necessities can be fulfilled easily (Cleverism, 2018).
 Profit and loss forecast
For the first two years the startup will aims at attaining no profit no loss situation. Once it
is attained, eat healthy stay healthy will go for profits. In service department of eat
healthy stay healthy, the consultancy fee can be served as the revenue that will help in
bearing the cost for starting years.
 Cash flow forecast
The sources of cash inflows are sell of the produce to the distributers and the fee from
the consultancy provided for the organic farming practices. The cash outflows will be
rent of the warehouse, cash or credit payment to the farmers, interest on bank loan and
some other miscellaneous expenses.

 Balance sheet forecast
The capital is infused by the personal savings, crowds funding and loan from the bank.
The earnings would be the only source of income and warehouse would be the asset for
eat healthy stay healthy.
 Break-even analysis
The first two years would serve as the breakeven point for eat healthy stay healthy.
Once the breakeven is achieved, the losses can be easily covered up by the accrued
profits.
Conclusion
It can be concluded from the proposal that starting the new venture involves a number
of decisions. It can be said that the business environment, financial forecast, goals,
milestones, strategies and competition affects the operations to a great extent. The
organic produce industry is continuously on a rise and have a great area for expansion.
Being a newbie in the organic food industry, eat healthy stay healthy have to face a
number of threats and competition. The high number of competition is the main threat
for eat healthy stay healthy. It can be said and concluded that the future of eat healthy
stay healthy have a bright future in terms of scope and opportunities.

References
 Bplans, (2018). Starting a business guide. [Online] Bplans. Available at:
https://articles.bplans.com/starting-a-business/ [Accessed on: 29 March 2018]
 Businessnewsdaily, (2018). How to Start a Business: A Step-by-Step Guide. [Online]
Businessnewsdaily. Available at: https://www.businessnewsdaily.com/4686-how-to-start-
a-business.html [Accessed on: 29 March 2018]
 Cleverism, (2018). Porter’s five forces model 1 strategic framework. [Online] Cleverism.
Available at: https://www.cleverism.com/porters-five-forces-model-strategy-framework/
[Accessed on: 29 March 2018]
 Entrepreneur, (2018). Low cost business ideas. [Online] Entrepreneur. Available at:
https://www.entrepreneur.com/article/246400 [Accessed on: 29 March 2018]
 Inc., 2018. How to start a business in few hours. [Online] Inc. Available at:
https://www.inc.com/jeff-haden/how-to-start-a-small-business-in-a-few-hours.html
[Accessed on: 29 March 2018]
 Mindtools, (2018). Porter’s five forces. [Online] Mindtools. Available at:
https://www.mindtools.com/pages/article/newTMC_08.htm [Accessed on: 29 March
2018]