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Assignment TopsheetYour Name: Mohammed Mohsin Baawain
StudentID:1721723
Unit Title: MAR015-6
Unit coordinator’s name:P.PAUL BURNS ………………….. Submission due date:8-12-19
Assignment Title:
Entrepreneurship and Small Business Management
Signature: Moammed Mohsin Baawain
.Date—8-12-2019
Introduction
The main aim of a business venture is mainly to make profits while at the same time
providing goods and services that are beneficial in satisfying consumer’s needs. Enterprises in
the twenty-first century have evolved drastically with an increase in technology and innovation.
Technology has made the production and delivery of both goods and services faster and
efficient for suppliers hence creating more market for their products (Woodruff, 2019). With
advances in the types of businesses that come up, small businesses have had to become more
creative in their services and product delivery by offering new business ideas. The company
begins with a conceived plan which is designed through a business model, and after careful
planning and consistent research, as well as investments, becomes a feasible business activity.
This research paper will focus on developing a business model for a supermarket garden; its
market analysis, value proposition, operations plan, resource, and financial plan will also be
discussed.
Business idea, market, and competitor analysis
Food is the most basic human commodity, and the businesses which revolve around
food production, manufacture, and sales are deemed to have the highest sales and consumers.
According to global statistics, the food and beverage industry is considered to be more
sustainable to the economic growth and Gross domestic product of a country (Gaille, 2017).
Research conducted by the Plunkett research team indicates that the food retailing business is
an assorted and advanced business with over 50 000 food vendors (Gaille, 2017). This has led
to increased innovation in the production, manufacture, and distribution of food products to
diversify the food industry.
Supermarkets are the most preferred shopping places since they offer customers an
alternative to buy most of their products in one place hence saving their time. The retail industry
is booming, and especially with an increase in population, the demand for commodities is high,
hence the need to increase supply as well (Woodruff, 2019). Supermarkets are mostly known
to sell goods that are produced and manufactured by other different companies. My business
idea is to introduce gardens in supermarket backyards where they can naturally or artificially
grow some of the fruits and vegetables that they sell to their customers. This would be an
innovative venture that would attract customers who opt to buy fresh and reliable vegetables
whose source they can identify.
Supermarkets offer customers convenience through the provision of assorted goods and
price margins, which tend to vary from one product to another (matters, 2019). They also
operate on a self-service policy that encourages customers who prefer privacy and less
interaction when shopping for their products. Most goods obtained from supermarkets are of
high and reliable quality at relatively affordable prices, which encourage consumers to continue
shopping in supermarkets despite them having numerous retail outlet options (matters, 2019).
Supermarkets have sustainable business models that enable them to operate smoothly and
continuously make profits. However, with the introduction of a new business idea, there is a
need to formulate its business model to showcase how the owner envisions it will work.
Market analysis is a valuable tool in establishing how the industry operates concerning
market availability, trends, and profitability. This information would enable the supermarket
owners to understand whether the backyard garden idea is feasible. An overview of the industry
describes the market as being available, considering that human beings must consume food and
other food products. The target market group that is mainly focused on in this context would
most probably be vegans and other customers who prefer fresh vegetables. It would also be
necessary for the supermarket owners to identify the central plants that the market needs to not
only plan on how to produce them but also in quantities required. Conducting a (Strengths,
Weaknesses, Opportunities, and Threats) SWOT analysis on the market would also increase
the information that an investor has (Kerr, 2017).
The main competitive advantage that this backyard garden would have on the
supermarket is increased revenues from the sale of fresh food products to numerous customers
(Schouten, 2017). This would also attract more customers who would prefer to buy from
reliable sources; the demand for fresh produce has been increasing tremendously over the
years; hence, retailers with fresh produce have a higher competitive advantage (Schouten,
2017). The supermarkets can also opt to sell their groceries online, which would also be
advantageous as they will be offering consumers an opportunity to choose their foodstuffs right
from the garden (Research, 2019). This would also increase their competitive advantage since
their consumers will be assured of high-quality fresh produce as opposed to buying from online
stores, which may sell genetically modified foodstuffs (Schouten, 2017).
Value Proposition and target market segment
The value proposition involves coming up with an innovative product that is supposed
to attract more customers as well as increase the value of a company. The supermarket garden
owners will need to provide the benefits that offering fresh produce will contribute to their
consumers, which include high quality and better-flavored products. Most city dwellers have
limited access to clean and organic food since there are insufficient lands to cultivate in
significant cities (Salud, 2014). The benefit that supermarket backyard gardens will offer to
their consumers will help solve the inadequacy created by insufficient fresh produce.
Supermarkets will vary from market farms since they will provide their consumers with a
chance to shop for all their products in one place (Schouten, 2017).
According to statistics derived from the packaged research firm, the increase in
population has resulted in increased consumption and demand for fresh fruits and vegetables
(Schouten, 2017). The target market identified will be city dwellers who have limited access
to fresh produce as well as vegans and other customers. The customers will have access to the
garden backyards where they will be granted access to choose their food from the variety
offered in the gardens. Customers will be requested to give feedback on how to improve the
products offered, especially on their quality, online delivery, and other sources where the
producer- customer relationship will be enhanced. Product improvement, branding, and
consistent customer interactions are some of the strategies that will be relied upon to retain
customers.
Marketing Plan, Marketing Mix, and Early development
The supermarkets will be offering a new type of product that was not initially available
hence the need for a marketing plan that describes the strategies they will use to advertise their
products. The supermarkets will promote this new venture through social media and print
media, as well. Market research will be conducted to come up with proper pricing strategies
that will cater for the operational costs. The market plan will also highlight who the target
markets identified are and how to meet their demand needs. The value proposition of the
business, which is to offer high-quality fresh produce, will be considered (Pahwa, 2018).
The marketing mix entails factors that the business will control to influence the
consumer’s purchasing capacity. This will include factors such as the types of products to be
offered, which will be fresh vegetable produce. The prices will be set at a fair range to enable
all consumers to afford the products. Promotions on their fresh produce may be offered
dependently to increase their customer awareness on the product (Pahwa, 2018). Potential
scalability for this business idea would be possible once supermarkets deploy additional
resources for this venture, such as more land and agricultural input. Use of advanced
technology in the farming process would also increase the scalability of the enterprise
Operations plan: Key Activities, risks, and partnerships.
The main objective of this new venture would be to deal with the supply of fresh farm
produce to its consumers. This venture will be conducted in the backyard gardens of
supermarkets; hence, this would be the physical location for the business. The main activity
undertaken will be farming; consequently, all resources and input deployed will be to enhance
this activity. The gardens would have to undergo site clearance before the commencement of
the works (Oracle, 2014). After setting up a nursery and enclosing the area for security
purposes, farming operations would begin. Tilling of the garden to prepare and cultivate the
land for crop cultivation will be conducted. Various vegetables and fruits will be planted. Then
constant pruning, spraying, and irrigation of the area to enhance the growth of the plants will
be practiced regularly (Oracle, 2014).
Risks involved in this venture include production risk; this suggests that the output from
the garden might be lower than expected (Sciabarrasi, 2019). Marketing risks will also be an
important factor where the supermarket may lose the market for their goods or may get lower
sales from its products. Financial risks may occur when the business owner does not have
sufficient funds to finance the business. Legal and environmental risks may inhibit the way the
company will operate. These risks can be mitigated through conducting proper and adequate
marketing risks while at the same time using risk management strategies to evade unexpected
consequences (Sciabarrasi, 2019). Partnerships that would arise out of this venture will be
between farmers and supermarkets as well as between the supermarket and other grocery stores
to sustain the food industry and enhance cooperation.
Resources: Human, Social and financial capital
Resources are the most important in the input stages, as well as the running of business
operations. Human resource needed for this venture includes labor for farming activities. The
work will require to be trained on the advanced farming methods available and the current
marketing methods they would use to sell their goods. Cultural resources will include social
networks that the supermarkets have had over time, as well as the social norms, values, and
attitudes that society depicts. Financial capital will consist of funds from investors or the
supermarket, loans from banks, and equity. All these resources, once deployed into starting the
business, will help to build and sustain it (Elsevier, 2019).
Financial plan
The sales of the goods will be made physically through the supermarket stores or online;
this will aid in serving a wide variety of customers. Relatively fair pricing is the technique that
will work efficiently for all the customers targeted. The cost of production and input will be
calculated to get an average standard for pricing. Other expenses incurred in the running of the
business will be managed through proper budgeting control measures. The profits from this
venture will be used to increase their production and fund other operations of the supermarkets.
Some of the profits will be invested and saved for future uses. The break-even point for
this venture will be avoided by proper business risk analysis. This will enable the firm to
operate while making profits. The cash flow analysis of the investment will be conducted every
month to keep track of the financial status of the company. The main activities in the cash flow
analysis will entail getting details of the cash inflows and outflows in the business as well as
other financial attributes. The cash flow statements will be made available for the venture’s
staff to enable them to see ways of improving the business.
Figure1. A table for the sale, buying price and net profit using the services for artificial
intelligence
Sale
$20
$35
$45
$55
$67
Buy
$30
$55
$70
$85
$93
Profit
$10
$20
$25
$30
$26
Conclusion
Business ideas are only practicable when there are elaborate plans on how to achieve
them. The business model enables one to create feasible ways through which an idea can be
made into a practical solution. The essay has explained ways in which a business idea can use
the business model to create a feasible business plan.
References
Elsevier, B. (2019). Agriculture and Natural Resources.
Gaille, B. (2017, May 29). 43 Food and Beverage Industry Statistics and Trends. Retrieved
from Brandon Gaille: https://brandongaille.com/42-food-and-beverage-industrystatistics-and-trends/
Kerr, M. (2017, 9, 27). How to write a market analysis. Retrieved from Business plans:
https://articles.bplans.com/how-to-write-a-market-analysis/
Matters, M. (2019). Supermarkets | Meaning | Features | Advantages | Disadvantages.
Retrieved from Money matters: https://accountlearning.com/supermarkets-meaningfeatures-advantages-disadvantages/
Oracle. (2014, 10). Managing Farming Activities. In JD Edwards EnterpriseOne
Applications Grower Management Implementation Guide Release 9.1 (pp. 11-16).
Pahwa, A. (2018, 9, 16). Service Marketing Mix – 7 Ps of Marketing Mix. Retrieved from
Feed ough: https://www.feedough.com/service-marketing-mix-7-ps-marketing-mix/
Research, C. (2019, 5, 14). US Online Grocery Survey, 2019. Retrieved from Core sight:

US Online Grocery Survey 2019

Salud, M. (2014). What is a “Food Desert?”. Retrieved from Mhp Salud:

What is a Food Desert?

Schouten, R. (2017, 9, 10). Six trends are fueling fresh fruit and vegetable sales. Retrieved
from Food Business News: https://www.foodbusinessnews.net/articles/10709-sixtrends-fueling-fresh-fruit-and-vegetable-sales
Sciabarrasi, M. (2019). The Big Five Risks Faced by Farmers. Retrieved from New England
Vegetable Management Guide: https://nevegetable.org/big-five-risks-faced-farmers
Woodruff, J. (2019, 3, 20). Effects of Technology on Supply and Demand Curves. Retrieved
from Chron
Q1. What is the core value proposition of your proposed business model? How is your value proposition
articulated through the different components of your business?
A. Brief description of your business? (6 lines).
B. Core value proposition? Why?
C. Articulated the Marketing Mix?
D. Articulated the operations expressed the business model?
E. Core value proposition Why? Justify? for example (Healthy, Quality, Safe, Fast, Pure, Clean, On
time Fresh Natural).
F. Diagrams
Operations
(Location,
Décor)
Packaging (Eco
Wriendly)
Product (Low Fat)
Brand Identity
(Color
Pink(Healthy).
Nmn lann
CORE VALUE
PROPOSITION
Q2. What are the significant risk inherent in your business Model? How would you Mitigate them?
A. Brief overview of Business Model? Make a Table for (Financial, Competitors, Customer, Legal,
Regulatory).
B. Identify risks? Probability – Impact Matrix?
C. NVC Frame work?
First
-You and Your Business Idea-
New to the
Market
Timer
A. Adoption
B. Accessible
Target Segment and Value Proposition
Product Design
Price Acceptance
Delivery
Brand Name
Marketing