The Fruit And Vegetable Snacks Venture Business Strategy Assignment
Question
Task:
You are asked to do an analysis of a case, and to choose between the “Fruit and
Vegetable Snacks Venture” case or the “Small Thai Family Business” case.
Base readings for both cases are provided in the assessment section on Canvas under
“Assessment Task 3 – Case readings”. Use the case questions or notes at the end of the case
readings as well as the details on structuring your report (below in this document) to guide your
analysis. With using the case questions, be careful to use them selectively to develop a
relevant business strategy argument. Decide carefully what is important for your analysis, and
what is not. The analysis must go beyond listing case facts and explain the strategic logic that
connect these facts.
Using business strategy concepts studied in the unit, as well as tools for internal and external
analysis and diagnosis, consider the following:
- Articulate a problem statement in which you identify a major challenge faced by the organisation in the case
- Evaluate the business strategy of the organisation with reference to the purpose/aim of the business in the case
- Based on the integration of your findings from internal and external analysis and diagnosis, make recommendations to improve the current business strategy
- For the social responsibility section, identify at least two stakeholders of this organisation who are likely to be impacted by your recommendations, and consider potential consequences of your recommendations for those stakeholders, including potential ethical dilemmas.
Answer
1. Introduction
Implementation of effective business strategy is essential for a newly opened business to overcome market barriers as well as expanding the service system in a wide market portion. In the recent times, most of the entire new business venture focuses to adopt social opportunities in a sustainable way. Therefore business consistency can be maintained in a proper manner.
This report on business strategy assignment has involved discussion regarding the issues of a newly opened business that is The Fruit and Vegetable Snacks Venture by an aspiring entrepreneur in UK. In this respect, the key business issues have been found and analysed in depth manner for finding appropriate solutions for solving them.
Purpose
The purpose of the business strategy assignment is based on analysis of business case scenario to find out main challenges that may be faced by an aspiring organisation. A social perspective of business development has been considered in this aspect.
Brief definition of the problem
From the case study explored in the business strategy assignment, it has been observed that non-sustainable financial structure and ineffective promotion and marketing strategies have been appeared as the critical issues for the new business venture (Ojo, 2018). Besides, trusted channels of communication were lacking in the business. These denote that some external and internal business factors were not in favour of Fruit and Vegetable Snacks Venture.
Brief implications of the problem for the firm as well as the stakeholders
In respect to the above mentioned challenge, it can be mentioned herein business strategy assignment that if it is left untreated then it may cause financial constraint and ill reputation of business in market in coming future. On the other hand, stakeholders’ relationships can be hampered only because of lack of effective communication process.
2. Analysis and evaluation
In depth analysis of the problem
From the case study undertaken to develop this business strategy assignment, it has become clear that Julie was focused to open a business that can be effective for her to grab plenty of entrepreneurial opportunities in the targeted market in UK. She had developed an effective business plan, but there were some key issues that could be effective to reduce her business efficiency in a prominent manner. As mentioned by Rahman et al., (2018), newly opened business may face severe issues only when the entrepreneur fails to integrate effective strategies into service system. Similarly, Julie designed her business with all of her efforts and conducted a market research also, but to some extent these all became weak the business became susceptible to face issues on non-sustainable financial structure. The key business strategies of this business were as pointed below within the business strategy assignment-
Maintain growth of Fruitveg bars by keeping organic foods with higher market demands Maintenance of social responsibilities by reducing food waste Maintaining lower cost to make the products affordable for all Establishment of brand identity by providing natural product (Ojo, 2018)
Thus, it can be mentioned that this business set their purpose through maintenance of social sustainability along with gaining adequate amount of profit. It is evident in this segment of business strategy assignment that a new business may often experience financial loss if the entrepreneur does not pay attention to financial management from the very beginning and the same thing has occurred in case of Julie. As described by Chell et al., (2016), most of the time social entrepreneurship faces issues due to lack of monetary investment and ineffective market strategy. This thing is not different in case of Fruit and Vegetable Snacks Venture.
Figure 1: Business strategies of the business in the case study
(Source: Developed by author)
In order to analyse the contextual factors of the issue, the internal as well as external analysis of business can be fruitful which are as described below within the business strategy assignment-
Internal analysis
Regarding the strengths of this business, it can be mentioned that Julie has focused to key market demands of fruit and the competitors’ positions in market. This means she could be able to bring changes in the business process in an entirely innovative way. In addition to this, only natural ingredients were used to make the snack bars which have high demand in New Spitalfields Market (Ojo, 2018). On the other hand, the weaknesses of the business were based on lack of focus on employee management and selection of effective funding options. The research on business strategy assignmentsignifies that the increasing demands of fruit and veg-bars in market can be the opportunity but the company may face troubles due to presence of strong competitors such as Haribo, Nestle and so on (Ojo, 2018). In the words of Phadermrod et al., (2019), internal analysis of a business is effective to understand whether the performance level of the business is in right track or not.
External analysis
Based on external analysis performed in the business strategy assignment, it can be mentioned that threats of new entrants and increasing bargaining power of customers can be the most important. Along with this, competitive rivalry with some established snack company such as Cadbury can prevent the growth of this business. As stated by Jankovi? et al., (2016), some external factors such as political situation, economic stability as well as social environment and technological growth are effective to handle business growth. Among these factors, some are beneficial for concerned business whereas some are harmful to this business to maintain consistency. In this respect, it can be mentioned that harsh external environment with critical competitive barriers may affect this business by creating financial challenges.
Recommendations for mitigating the issues
Based on the external and internal analysis of the business, it can be mentioned in this section of business strategy assignment that Julie can consider the following ways to overcome financial issue in her business and maintain growth with effective marketing and promotional strategies-
- Keeping records of financial expenditure in a serial order
The aspiring entrepreneur Julie can keep records of all business expenditure on a daily basis. It will be helpful to reduce unnecessary cash flow as well as support the profit earning method. Besides, allocation for all business functions need to be reduced little bit. - Specifying marketing objectives based on financial investment
Before starting the business, it is necessary to form market objectives (Win Ltd., 2020). Thus, it can be mentioned that setting marketing objectives based on the amount of investment will be advantageous for this social business to complete all functions within limited amount of budget. - Making partnership with renowned investors
In order to open a new business venture, an entrepreneur needs to make financial relationships with reputed investors in an ethical way. This will be helpful for the business to have monetary resources and it will lead to overcome financial constraints for performing all of the business functions in an efficient manner. - Initially focusing on either physical or offline sales channel
As a new social entrepreneur, Julie needs to consider either online or offline marketing strategies. Involvement of both strategies into the business process may cause huge amount of expenditure. Therefore, considering a single channel for primary market expansion will be beneficial for this small business to secure their financial base by reducing unnecessary expenditure in an appropriate way (BDC, 2020).
3. Social responsibility
Management of social responsibilities is necessary for each and every business organisation to establish more stable and sustainable business base. Similarly, in the case study Julie was focused to consider the social issues centres on amount of per capita food losses or food wastage in UK and other adjacent areas. Thus, it can be highlighted herein business strategy assignment that each and every business process must have some social responsibilities to be performed which have direct effect on overall business strategy.
a. Impacts of socially responsible business on overall strategy
It is an evident fact presented in the business strategy assignment that if a business develops with a social responsible core overall business strategies are affected in a positive manner. As per the thoughts of Yitshaki and Kropp (2016), social responsibilities are the power of a social entrepreneur and implementations of social entrepreneurship in business drive positive growth and business improvement rather than traditional profit maximization. The business of Fruitveg barsof the case study targeted low income consumers to meet their dietary needs. Thus, it can be mentioned that a socially responsible business helps to generate good reputation in market through maintaining social needs of maximum numbers of customers. The Triple Bottom line framework sheds light on the fact that environment, economy as well as society are equally important for a business to get sustainability (Harvard Business Review, 2020). Based on this fact, it can be highlighted that if a business develops with a socially responsible core, it will be able to grab advantages mainly based on sustainability enhancement. Along with this, it has been observed that a socially responsible business also focuses of employment and resolving different types of social issues of adjacent communities. Hence, it becomes prominent that if a business ignores its social responsibilities it can never be able to maintain its base in a society in a consistent manner. Through this discussion developed within the business strategy assignment the impacts of a business with a social core on the overall business strategy become clear.
Figure 2: Triple bottom line framework
(Source: Harvard Business Review, 2020)
b. Pairing of social responsibility and a business
The social responsibility and the business process can be paired together only the service process of the business will be focused to meet the social needs. For example, the case study organisation can be presented. Julie was focused to bring fruitveg bars which will be lower at cost and greater in quality. As a result of this, the service system will be effective to meet social (dietary) as well as economic needs of community people (Ojo, 2018). In this aspect, the social responsibilities and the business process can be considered as a pair together as the core focus of each of the aspect of congruent that is development of sustainability. In order to enhance business sustainability along with social responsibilities the financial base of the business venture needs to be made strong. This is a drawback of this business venture as Julie was not managed the financial strategies. As described by Setó-Pamies and Papaoikonomou (2016), the social responsibilities of a business are effective to support both internal as well as external sustainability. The Fruit and Vegetable Snacks Venture can focus on s supporting community growth by meeting their dietary needs to can provide healthy foods to the poor people in community. This phenomenon prominently shows that a business process and the social responsibilities can be paired together only when the service process is positively effective for the consumers.
c. What are the responsible factors mentioned in the business strategy assignment that impact of business strategy implementation?
There are a range of factors that may constrain growth of a social business by affecting the business strategies in a negative manner. The following table presented in the business strategy assignment has involved discussion based on the key factors that inhibit implementation of business strategy with a socially responsible core-
|
Key factors |
Severity level |
Descriptions |
|
Environmental uncertainty |
Medium |
It creates a barrier for socially responsible business in terms of creating gaps in performing business activities in a sequential manner. For instance, if Julie faced environmental constraints the process of stakeholders’ communication might be hampered. |
|
Financial instability |
High |
It is one of the main barriers to affect on the business strategies that have social core. As per the data of Fao (2020), face of monetary fund retard growth and management of food production. Therefore, it is quite obvious that Julie may face difficulties to perform social functions if there are prominent budget related issues. |
|
Ineffective business cultures |
Medium |
It hampers growth of a social business due to creating ineffective mode of communication. It is obvious that when a business culture is affected negatively, it can never be possible to maintain continuity in functions. |
|
Improper resource allocation |
Medium |
Making a proper budget plan is necessary for maintaining continuity in social functions through a business. In this respect, it can be highlighted that the concerned business by Julie might faced issues related to ineffective monetary management and indecisive planning. |
|
Lack of customers’ satisfaction level |
High |
Reduction of service efficiency and unfulfilled social needs are the obvious reasons for enhancing dissatisfaction level of customers of a social business. Hence, it can be mentioned that a social entrepreneur needs to be conscious in terms of designing business strategies for the sake of social prosperity (Omar et al., 2016). |
|
Ethical dilemma |
High |
This reason has the ability to retard a business base. Lack of individual responsibility, lacking of focus to socially vulnerable population as well as absence of commitment to the service denote that the business process is not ethical. |
Table 1: Responsible factors that impact of business strategy implementation
(Source: Developed by author)
Similarly, the stakeholders of this business venture are also affected by these factors. For example, it can be mentioned that employees are the primary stakeholders whereas the NGOs are the secondary stakeholders of this business. The issues identified in the above section of business strategy assignment may cause increase in employee turnover and lack of collaboration with the NGOs for fulfilling social purpose through the business. The recommendation such as specifying marketing objectives based on financial investment and keeping records of financial expenditure can be helpful to impact of these stakeholders in a positive way. As mentioned by Rafindadi and Ozturk (2016), proper financial management is the effective way for a business to uplift its growth. Therefore, sustainable monetary management will make Julie able to maintain coordination with all stakeholders in a constant manner for meeting the social needs of Fruit and Vegetable Snacks Venture.
4. Conclusion
Thus, it can be concluded herein business strategy assignment that the financialissue is the most prominent barriers of concerned business. Julie is focused throughout to serve the needy people in society and as a result of this financial aspects have not been properly checked. Along with this, diversified marketing strategies have been adopted which has become a cause of unnecessary expenditure. It has been found that Julie has designed the sales, marketing as well as pricing strategies in a well-developed manner and focuses to reach maximum portion of targeted market in New Spitalfields by selling the fruitveg bars. Apparently, it seems that everything is on track but effective recommendations appear as necessary for managing financial efficiency of Fruit and Vegetable Snacks Venture. Thus, recommendations have been made within the business strategy assignment based on Keeping records of financial expenditure in a serial order, specifying marketing objectives and making partnership with renowned investors and so on.
Apart from this, it can be mentioned in the business strategy assignment that the concerned business was focused to serve and meet the social needs of people rather than earning profit. It can be considered as an effective strategy adopted by Julie to maintain business sustainability for a longer period of time. In this regard, all of the necessary legal and ethical guidelines were followed by the social entrepreneur. Not only the social, but also economic as well as environmental perspectives were also checked by the management of Fruit and Vegetable Snacks Venture. Hence, it can bementioned in the business strategy assignment thatsocial responsibilities and business development of a social business are interlinked with each other. In order to maintain the business continuity, Julie was focused to maintain critical interactions between primary and the secondary stakeholders. Thereby, this became possible for her to support the newly opened business externally though internal business process was not effective enough to compete with other companies in UK. ?
5. Reference list
BDC, 2020. 7 Tips For Reducing Business Expenses. [online] BDC. Business strategy assignmentAvailable at:
Fao, 2020. CONSTRAINTS, ALTERNATIVES AND STRATEGIES. [online] Fao.org. Available at:
Harvard Business Review, 2020. 25 Years Ago I Coined The Phrase “Triple Bottom Line.” Here’S Why It’S Time To Rethink It.. [online] Harvard Business Review. Available at:
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Ojo, S., 2018. The fruit and vegetable snacks venture. SAGE Publications: SAGE Business Cases Originals.
Omar, M.S., Ariffin, H.F. and Ahmad, R., 2016. Service quality, customers’ satisfaction and the moderating effects of gender: A study of Arabic restaurants. Procedia-Social and Behavioral Sciences, 224, pp.384-392.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis.Business strategy assignment International Journal of Information Management, 44, pp.194-203.
Rafindadi, A.A. and Ozturk, I., 2016. Effects of financial development, economic growth and trade on electricity consumption: Evidence from post-Fukushima Japan. Renewable and Sustainable Energy Reviews, 54, pp.1073-1084.
Rahman, M.Z., Ullah, F. and Thompson, P., 2018. Challenges and issues facing ethnic minority small business owners: The Scottish experience. The International Journal of Entrepreneurship and Innovation, 19(3), pp.177-193.
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