Business Plan for Setting Up a Shop Selling Genetically Modified Food


Project Report, 2011
19 Pages, Grade: A

Excerpt

Table of Contents

1.0 Executive summary

2.0 Current situation and market analysis
2.1 Industry analysis
2.2 SWOT analysis

3.0 Products
3.1 Product assortment
3.2 Product sourcing, buying and inventory management

4.0 Organizational plan
4.1 Hours of business
4.2 Company ownership
4.3. Company location
4.4 Start up

5.0 Marketing approach

6.0 Operational plan and supply chain
6.1 Sales strategy
6.2 Market segmentation

7.0 Management plan
7.1 Ownership structure
7.2 Legal requirements
7.3 Personnel plan

8.0 Financial plan
8.1 Financial assumptions
8.2 Estimated budget for one year
8.3 Financial statements for the company

9.0 Growth plan investment

Bibliography

Appendix

1.0 Executive summary

Genemod Shop is a company whose ideas of formation dates back to October 2010, when four undergraduate students taking accounting, horticulture, marketing and business management engaged in an entrepreneurial discussion. Scheduled to start its operations in May 2011, its main purpose is to provide quality and timely food to students the University of reading. It will provide Purple tomatoes, British blackcurrant berries, Tomato puree and some GM vegetables as the main GM food. The name Genemod was arrived at after considering many options one being the combination of Genetic and Modified to get Genemod hence the company name. On the market opportunity, with the current trend in food consumption, it has been realized that genetically modified food remains the best option both at home and commercial residents. Students in the university travel to the supermarkets to get food which should be availed near their halls of residents. The university has many halls of resident including student village, hillside court, Martindale court and Mackinder hall among others which represents a good market to be exploited.

The company seeks a capital of £10,000 for the start up. This will be raised from member’s contributions, loan from financial institution and venture capitalists’ contributions. Repayment of the loan will begin immediately within two months of its operations. The shop faces competition from two main suppliers who bring fruits and vegetables to the school compound on Mondays and Wednesdays. Some students go to the supermarkets to buy the food hence this constitutes another competitor.

2.0 Current situation and market analysis

The current economic crisis all over the world calls for interventions in food production and distribution. Many students are paying extra coins for buying food from supermarkets and distributors who come to the university twice a week. Sometimes there is a shortage of food that leads to using unbalanced diet and cooking of meals without some ingredients like tomatoes. Analysis is the key to determining the potential profitability of a business and expected rate of return on investment (Stevens, 1993, P. 9). Market analysis done involves identifying competitors, current and growth potentials. Market segmentation will be done from the basis. This portion of the plan will also identify target customers who are the prospects of our food products.

2.1 Industry analysis

The main suppliers of the genetically modified food come to the university on Mondays and Thursdays to sell their products. The sellers purchase food products from accredited suppliers who give them quantity discounts and after sale services like transportation to the university. Another main competitor is the supermarket in the town where students go for their food products. It stocks different kinds of food but it is opposed to the idea of genetically modified food. The supermarkets sale hybrid food products at slightly higher price compared to genetically modified food. This is justified by the fact that they take a lot of time to mature. Students go there since most of the time they don’t have an option when the semi weekly suppliers delays.

2.2 SWOT analysis

After analyzing the food industry in which the company will operate and more specifically selling genetically modified food to students, the following were identified. Strengths included quality of food products to be stocked, differentiation from competitors, good customer services and convenient location of the shop. High quality from accredited suppliers which will be enhanced by mode of packaging will differentiate the product from the competitors hence make Genemod the best food distributor in the university. The Weaknesses included the fact that the owners are inexperienced in terms of business as they are students who have not been involved much in business. Genetically modified food is a new product where students have only learnt hence lack of experience in handling the same.

However it has opportunities to educate students on quality of genetically modified food and establish a relationship with school administration to assist in marketing of the products. This will be done through using the school website more especially under the links of accommodation to communicate to students on the days the food will be availed in school. The threats include: Miscalculation of customer tests and preferences where the company anticipates that many students will prefer genetically modified food to hybrid one. This might not be the case but the company hope for the best. Another problem is the timing of food distribution as there might be examination when the company distributes food. This will make the company suspend its operations hence poor reputation. This will be countered through employing two people to do the same work during examination time.

3.0 Products

After market analysis, there was a need to bring products into the market to fill the gap that exists. Genemod will stock quality food that is unique all over the University Of reading. The brand names given will be patented and will make them hard to copy. The quality of the food will be enhanced by mode of packaging, structure and its design. The brands given will be familiarized through Television, poster, decorated van, university website, facebook and billboards across the university.

3.1 Product assortment

Purple tomatoes

They are developed in higher biotic compound hence can help people who do not eat 5 portions of fruits and vegetable a day as recommended. Purple tomato has antioxidant pigment which has ant-cancer property and has significantly longer life span. It also has anti-inflammatory properties that help in boosting eyesight and it is known to prevent obesity and diabetes. Some concerns have been raised about this found but they will be addressed accordingly through educating students about the importance the tomato as it uses modern technology. They will be told to try and compare with the previous food supplied (BBC News 2008:1).

British blackcurrant berries

It has anti-oxidant compound that help in preventing Alzheimer and cancer. It has the capability of preventing brain degeneration and age related diseases. Five fruits will be packaged and sold at £ 1.6, £ 0.2 higher than the normal price in the market. The higher price will be justified through the transportation costs involved and convenient to the customers.

Tomato puree

The tomato has its rooting gene removed and it last longer than conventionally grown tomatoes. It has a strong test and is cheaper as it requires less energy and water when growing. It is accepted in the UK market and common among students. It will be stocked in plenty and packaged in 500 grams and 1 kg tin. The selling price will be £ 1.3 and £ 2.5 respectively.

Cabbages, cauliflower, sprouts and broccoli

This will form the main vegetable sold by Genemod shop. The shop will be selling both white and purple sprouting in the category of broccoli. Spring, wither and summer cabbages will be availed during their respective seasons to ensure there is plenty of vegetables in the university. Cauliflower will be another important type of vegetable availed by the shop. They will be sold at an average price of £ 1.2 per kilogram.

[...]

Excerpt out of 19 pages

Details

Title
Business Plan for Setting Up a Shop Selling Genetically Modified Food
College
University of Newcastle
Grade
A
Author
Year
2011
Pages
19
Catalog Number
V215675
ISBN (eBook)
9783656443087
ISBN (Book)
9783656443193
File size
766 KB
Language
English
Notes
Tags
business, plan
Quote paper
Raymond Cook (Author), 2011, Business Plan for Setting Up a Shop Selling Genetically Modified Food, Munich, GRIN Verlag, https://www.grin.com/document/215675

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