BUSINESS PLAN FOR
NUTRASURE
2.1
Company ownership:
Nutrasure is a profit organization,
which is going to promote its business in domestic market of UK. Initially, the
company will be starting off with few of the basic health care products which
are organically made. The initial product portfolio will include organic pain
relief balm, organic tea, organic health care creams and much more. For the
initial phase of time, the company will only serve the local locations, after
that the company will look to expand the product portfolio along with its
service area. This is a partnership business aim to reach the business goal in
a stipulate time.
In the case of partnership business,
more than one owner use to manage all the functions of the company by targeting
a potential market(Dibrellet al. 2014). Apart from that,
the owner is also responsible for the financial liability of the company. In
this company also, initially, the owner will be liable for all the financial
liability of the company. In future, when the company will grow other ownership
structure will be considered by the owner to increase the cash flow. For the
initial phase, the owner only (Gerow et al. 2014) will take all the key
decision.
The partnership business is chosen for
the company because it is the simple among all the ownership structure, which
will enable the owner to improve the quality of the products. Apart from that,
the partnership business will enable to keep everything under certain control
only, which will avoid the chances of mismanagement at the earlier phase of the
company due to the overflow of views(Kee-Luenet al.2013). Another benefit of
the partnership business for which it is suitable for the business is the
transparent taxing system. The taxis system of the sole proprietorship is same
as individual income taxes. According to Rohrbeck & Schwarz (2013), this helps the company to deal
with the convoluted taxing system by keeping everything transparent for the
initial time phase.
2.2
Company start-up summary:
All the health care products that are
being sold in the market are mainly chemical based. In addition, most of the
time, customers and various studies have reported having negatively affected
from these chemical health care products. Apart from that, there has been a
recent trend of using more organic products rather than chemically produced
goods(Massa & Tucci, 2013).
Therefore, the company aims to capitalise on the changing behaviour of the
customer thereby providing organically produced health care products. In order
to make it a success, the company will focus on the quality of the products by
refraining from using artificial materials in the production process(Horkoffet al.2014).
The owners of the company are experts in
organic chemistry, which enable them to provide different innovative thinking
to accelerate their business. It has also allowed him to take interest in the
production of the organically produced healthcare products(Gerowet al. 2015). Apart from that, the owners also have worked
for an organic food producing company for five years, which has provided valuable
experience and knowledge. This also has triggered the interest of the owner to
invade the organic health care market. Along with that, the family business
management of the owner has provided the necessary business management
knowledge to the owner. Therefore, all the pre requisites for running the
company are there which will work to make the venture success.
Along with the in hand experience that
the owner has acquired during the stint at the previous company and the family
business, the owner also perused a certification course on business management.
This has provided the owner with the required technical knowledge for running a
business in a harmonious way(Martin,
2014).
3.0
SECTION THREE:
3.1
Products summary:
The company is going to sell only
products, especially organic health care products for its customers. The wide
range of products includes organic balms, creams and many other health care
products such as green tea, soap. Production of the company will ensure that
best quality input goes in. Quality will be the main preference rather than
quantity in order to attract the potential customers(Latifet al. 2013).
The basic product of the company will be
to provide an organic balm of the customers. The products will be enriched with
menthol and aloe Vera will give a release for any kind of pain relief such as a
headache, knee pain and much more. The product will come in a small green case.
Initially, the product will only be available at Manchester only. After that,
the company will take many strategies to invade other geographical markets(Massa & Tucci, 2013).
Another principle product on which the
company will focus is the organic health drink. The health drink market in the
UK is booming and an organic one will triumph in the market. Keeping that in
mind the company will produce high-quality organic health drink with high
nutrition value. The drinks will also work as good anti oxidants, while most of
the non-organic drink are harmful to the liver. The product will use the
organic ingredients as an USP for gaining a competitive advantage in the market(Schoemakeret al.2013). For this product, three types of packages will
be there such as small, medium and large. For the initial phase of time, these
two primary products of the company will be available in Manchester only.
One of the other products of the company
is the herbal skin care cream. The cream will be made with high-quality aloe
Veras which are good for skin. The pack of this cream will come in various
sizes depending on the demand of the customers. The ingredients and the use of
organic elements will be the top most priority of the company in order to fight
the rival force coming from the chemical products. The USP of the product is
that it contains herbal elements such as walnut, Persian rose, aloe vera and
much more. The product will deal with the anti-ageing problem by providing a
natural glow from inside. Most of the other cream in the market does not work
on the scar that is present in the skins. This product will also be able to
work on the skin scars by removing them from the roots. Apart from, the product
will also maintain an adequate level of moisture in the skin by giving a
glowing look and soft texture.
Apart from that, the product portfolio
also includes herbal shampoos which are different from the mainstream shampoos
that are available in the market. The effectiveness of this organically
produced is much more than the existing chemically produced shampoo. The
ingredients of the shampoo are a mix of the organic element and bioactive
elements. The shampoo is full of aloe Vera and Manuka honey. According to Spiethet al. (2014), the effectiveness of these ingredients is
more than the chemical ingredients. The shampoo will be helping in efficiently
softening and cleaning of hair. For the aroma of the shampoo, organic scents
such as mandarin peel oil, cinnamon will be used. This product also will come
in many sizes such as small, medium and large.
Another product of the company is the
herbal toothpaste containing spearmint and aloe Vera. This product will also
refrain from using any kind of chemical elements in the production process.
Most of the toothpaste present in the market contain sodium fluorides which are
often harmful to the teeth. This product will solve the problem associated with
the chemical elements and use organic elements such as spearmint. One of the
good things about the toothpaste is that it is non-toxic, which means that if
kids swallow it by chance, it will not have any ill effects on them. The
product stops the growth of the oral bacteria and removes plaques with ease.
Lastly, keeping in mind that most of the existing toothpaste does not taste
good, the product will consider the taste aspect of the product.
The company will also sell organic body
wash which is much better and soothing for skin. The main ingredients of the
body wash will be flowers, seeds, fruits and much more. The production
department of the company will make sure all the high quality and real
ingredients are used for the production of the body wash. Many of the existing
body wash in the market contain Sodium lauryl sulphate which is very much harmful
to the skin. Wolf & Floyd
(2013) stated that this chemical dries skin and takes out the moisture
from the skin. This increases the chance of skin diseases. This product aims to
solve the problem associated with the chemical products. The product will
provide a natural skin colour to the user giving them a good texture along with
a soothing aroma. The pack of body wash will only be of one size, which is the
medium size of 5 Oz.
Lastly, one of the important products of
the portfolio, which will be provided by the company, is organic tea. Customers
are becoming highly health conscious and hence demanding teas that are more
organic nowadays(Wolf & Floyd,
2013). Therefore, the company embarks on a mission to provide completely
new experience in terms of green tea. The product of this company is different
from the others in the sense that it provides a good flavour. Most of the
customers complain about the awful taste of the green teas. Therefore, this
product will give the customers a new experience in terms of taste of the green
tea. The principle ingredients for of the tea are basil, which is useful to
increase the metabolism of the body by helping in keeping a healthy body
weight.
4.0
SECTION FOUR:
4.1
Market Segmentation:
The main customer of the company and its
product is the end customers. All the products and the changes in the products
will be based on the demand of the end customers onlyWuet al. (2015).
The main target group of a customer of the company is the middle-class family
who is also concerned about the hygiene aspect of the life. The price level
will be kept at such a level so that middle-income families can afford the
products of the company. In the initial phase, the company will target the
middle-income families of Manchester. After that, depending on the customers’
response, the company will undertake expansionary strategies to invade other
markets. Initially, there will not be any market segmentation due to the
limited portfolio of product(Schoemakeret al. 2013). However, in the future
with the introduction of more premium products, market segmentation will be
done. For the premium products, the customers will be charged more so that
other price of the other normal products can be kept at a low level.
The customers of the
company will be from all the ages, from children to aged people. The initial
product portfolio is designed to fulfil that goal of the company(Spiethet al.2014). The organic health drink is for the children
and the young customers of the company while, the green tea is for the elderly
customers of the company. The company also has products such as organic body
wash, for fulfilling the needs of the overall family as well.
4.2
Target market segment strategy:
Finch
(2016) opined market targeting and segmentation is the
significant business strategy taken by a profit organisation in terms to
achieve higher revenue. Target market refers the part of the market
organisation might choose to optimise their sales. However, market analysis is
the most effective tool to practice market targeting which effectively
increases the sales of a particular product or services (Scholes, 2015). According to a
study conducted in United State pointing on that particular organisations,
which are majorly dealing with organic products, the result reveals that target
market segmentation strategy enhances its performance by immerging sales
percentage from 60% to 70% (Aspara
et al. 2013).
On the other hand, segment strategy
incorporates segmenting, marketing and positioning facilitating the organisation
of identifies the market risks. Moreover, it is better to deal with that
particular customer who is willing to buy the organic health care product
rather than the overall population (Blackburn,
Hart & Wainwright, 2013). By adopting the segmentation strategy
Nutrasure will reach to that meticulous customers who are considered as
potential for the products the organisation dealing with. Similarly, after
segmenting the market in the next step the researcher might focus on the
marketing strategies of the organisation in order to retain consumers. Chang & Lee (2013) stated that in
the closing step, the business would practice positioning strategy, which
allowed them to magnify the probable competitors.
4.3
Service Business analysis:
De
Reuver, Bouwman & Haaker (2013), stated that service
business analysis mainly refers the development of the current business plan.
As Nutrasure is a start-up business, so the organisation should produce a
business plan by considering very basic purposes of the Nutrasure. However, the
service business plan is an operation plan, which uncovers the factors that are
contributing to organisational success (Demil et al. 2015).
Nutrasure should analysis their service plan by considering their products and
services. Although the demand for each product will not be same with its
supply, which generates an inventory cost for accumulating inventories. Thus,
the service analysis should be proper and accurate which can provide a perfect
scenario of the market acceptance of commodity or services (Dibrell, Craig & Neubaum, 2014).
There are numerous components present in a service plan of a large-scale
organisation, whereas in the case of a small-scale organisation like Nutrasure
the plan will only consist of production, distribution and feedback o the
particular distributed products. Apart from that service plan get differ based
on the different region in the UK (Fayolle,
2013).
SECTION
FIVE
Do
you know what it’s like out there?
Competitive
Edge:
Gerowet al. (2014) stated that currently,
there are several large-scale and small-scale organisations, which are dealing
with organic health care products. Abbott, Alcon, AS Pharma, Baxter, Cephalon
are the most significant competitors of Nutrasure. Few of them has been
expanded their business in the international market like Abbott (Gerow, Thatcher & Grover, 2015).
However, in order to achieve higher profit in over growing competitive market
structure organisation need to follow the strategies taken by its competitors. In
the initial stage, Nutrasure should trace these strategies and required to take
potential strategies to overcome the current challenges (Honig & Samuelsson, 2014).
On the other hand, as the organisation
is going to launch their new organic healthcare products in the UK market, therefore,
they need to assess the product quality and price of the substitute products in
terms to sustain in the particular market (Latifet al. 2013).
Proper assessment of the quality and price of the substitute goods and services
allows the firm to take the comparative advantages. According to a research
conducted in the UK over the health care organisation, which is particularly
dealing with organic products, represent that most of the organisations are
achieving more than 75% profit in these decades (Kee-Luen, Thiam-Yong & Seng-Fook, 2013).
Marketing
strategy:
In order to achieve growth Nutrasure
should maximise sales byadopting several effective marketing strategies.
Moreover, marketing strategy is the best business strategy, which has enough
contribution in revenue and profitability. Lederer (2013) stated that by adopting effective
marketing strategy Abbott achieved more than 63% of the total market share in
last financial year in the domestic market of UK.
However, the organisation has planned to
expand their services only in the urban and semi-urban areas in the preliminary
stage (Martin, 2014).
Therefore, in the case of urban areas service plan of Nutrasure should mainly
concentrate choice and preference of individual customer because the
organisation has hardly any need to take in to account the income level of the
potential customers in urban areas. Similarly, in the case of same urban areas,
Nutrasure need to take into account the income level of the targeted consumer
according to their choice and preferences (Massa & Tucci, 2013). These are the most
significant strategy Nutrasure need to adopt currently. Another marketing
strategy that Nutrasure should take into account is the sales minimization.
Being a start-up organisation Nutrasure should adopt cost minimization
strategies in terms to a substation in the dynamic market structure (Palo & Tähtinen, 2013).
Sales
strategy:
Sales strategies are aimed at the
customer retention and customer satisfaction in order to maximise sales. As the
health care market of UK is completely dynamic, so Nutrasure should adopt
certain effective sales strategies for maximising their sales of the product.
In this context, the organisation might distribute the samples of their new
organic health care products particularly on the targeted consumers (Rohrbeck & Schwarz, 2013). As
the organisation is dealing with the organic health care product, so it will
have to select those candidates who are suffering from sugar, diabetic, obesity
or many other generic and common diseases.
However, the organisation is aimed
towards sales maximisation rather than the profit maximisation in the initial
stage so the organisation should retain their customer by realising a certain
amount of discount on the organic products (Sakas, Vlachos & Nasiopoulos, 2014). This will
help the organisation to attract the existing customer as well as certain new
customers in the domestic market. However, Nutrasure should assume cost
minimization having no compromise with the quality of the products which is the
another comparative advantages which is also become a sales strategy in UK
market(Spiethet al. 2014).
Sales
forecast:
In order to achieve
growth Nutrasure should maximize profit by adopting cost minimization theory. Moreover,
in the preliminary stage the company is more focused on sales maximization
rather than profit in terms to cope up with the present market situation (Finch, 2016). According to
projected sales report, as people are more willing to buy the organic health
care products for their primary care so the sales percentage might reach at 60%
at the end of first financial year (Scholes,
2015). Although the average sale would depend on the substitute products
in the market and their customer retention power but the business is having an
opportunity to accelerate their business by practicing economic pricing.
|
Months
|
Projected sales ($)
|
|
Moths 1
|
0
|
|
Month
2
|
5,000
|
|
Month
3
|
10,000
|
|
Month
4
|
15000
|
|
Month
5
|
20000
|
|
Month
6
|
25000
|
|
Month
7
|
30000
|
|
Month
8
|
35000
|
|
Month
9
|
40000
|
|
Month
10
|
45000
|
|
Month
11
|
50000
|
|
Month
12
|
$55000
|
Table
1: Projected sales of Nutrasure
(Source: Created by author)
Figure 1: Projected
sales of Nutrasure
(Source:
Created by author)
The figure shows that in month 1
theorganization is going to sale 0 unit because month one in the initial
period. However, with time being, the amount of sale is increasing which
indicates that the business is going well with its allocated resources.
Milestone:
The business should have some milestones
to meet the business goal in the projected time (Blackburn, Hart & Wainwright, 2013). These
milestones genuinely enable the organization to monitor entire production
operation, resource allocation and distribution system. Being a start-up
organization Nutrasure might follow up four milestones:
·
Identify suitable
location for factory
·
Optimum utilization of
allocated resources
·
Meet the market demand
·
Meet business goal of
first quarter
Firstly, the business
should have suitable location for its factory (Chang & Lee, 2013). As the Nutrasure is an organic
product, manufacturing company so it should situated its factory in a suitable
place place by keeping in mind about the transport cost. Moreover, the
production operation required several organic raw materials like green
vegetables, woods, different flowers, leaves, and many other herbal products
and supply of these all products depend on a particular market (De Reuver, Bouwman & Haaker, 2013).
Thus, the distance between factory and the raw material market should be very
less as the organization do not have to spend more money on transport.
Secondly, optimum
utilization of resources is the second milestone, which enables the
organization to meet the market demand by utilizing its resources in a proper
way. Moreover, optimum utilization of resources avoids the inventory
accumulation to invent the raw materials (Demilet al. 2015).
Thirdly, it is very
much important for any bisiness to meet the market demand with adequate amount
of product. In order to meet the exact market demand Nutasure need to arrange a
market operation to get the precise scenario of the market acceptance of a
particular organic product. For example in case of green tea, the organization
might arrange some samples for distributing them by arranging random sampling (Dibrell, C., Craig, J. B., &
Neubaum, D. O. (2014). As the survey is been conducted by adopting
random sampling so it cane said that it would positively reveal a practical
picture of the market acceptance.
Finally, business needs to reach the
business goal of the first quarter. According to the business plan the owner of
the form wants to maximise sales rather than maximize profit, so in first
quarter the business must meet its sales amount which is been projected
earlier.
SECTION
SEVEN (1200 words)
Abbott:
Abbott is a United State based
organization, which is dealing with health care products like medicines, blood
banks, laboratories, medical devices and different diagnostic equipments (Fayolle, 2013). It is an
international organization, which already expanded its business throughout the
world.
Ceuta:
Ceuta is another strong competitor of
Nutrasure, which is operating in UK since 2001. Ceuta is dealing with both
organic and nonorganic products particularly in health care. It has more than
20% of the total market share in UK (Gerowet al. 2014).
Merck:
Merck is US based company, which is
majorly dealing in domestic market of UK. This company use to provide different
type of pharmaceutical equipments and diagnostic equipments particularly for
the diabetic patients (Honig &
Samuelsson, 2014).
However, it is important to identify the
competitors and the strategies, which they are adopting in domestic market (Horkoffet al. 2014). In order to analysis the competitive power in
the business situation, it is important to consider Porter’s five forces model.
|
Supplier power (high)
|
The
suppliers of raw materials for organic product in UK are having high power,
as there is increasing demand of organic health care products. On the other
the organic health care product market is hardly can be treated as a
competitive market so there is little number of suppliers who are dealing
with the organic companies (Kee-Luen,
Thiam-Yong & Seng-Fook, 2013).
|
|
Buyer power (moderate)
|
However,
buyer’s power is quite moderate because there are huge numbers of buyer who
are dealing with few sellers (Massa
& Tucci, 2013). Therefore, the buyer’s are having hardly any
capability to bragging with sellers.
|
|
Competitive rivalry (high)
|
In
these decades, people are more attracted to the organic healthcare products
like green tea, organic cream and other organic hear products. Thus, there
are certain large-scale organizations like Abbott, Ceuta and Merck who are
majorly dealing with organic products are launching various medicines and
beverage product in the domestic market of UK (Morriset al. 2015).
On the other hand, government of UK has taken several initiatives to promote
the organic and natural health care products in UK market. Government also
provided different types of subsidies according to the needs and requirements
of the organization (Palo &
Tähtinen, 2013).
|
|
Threat of substitute product (low)
|
As
the business is a start-up organization and launching some unique products in
the market, so it hardly faces any kind of threats from the substitute
products (Rohrbeck &
Schwarz, 2013).
|
|
Threat of new entry (high)
|
According
to a survey conducted on UK concentrating on health care organization, which
are majorly working with the organic products. The study reveals that there
in 2016 more than 72 firm participates in organic operation to produce
organic skin product, hair product, green tea and many other things (Sakas, Vlachos & Nasiopoulos, 2014).
Thu, it can be concluded that the threat from the new entry is very high in
UK market for Nutrasure.
|
Table 2: Poter’s five
forces Analysis
(Sources:
Morris et al. 2015)
According to the WHO, most of the
developed countries like UK, United States and Australia, which are concern
about the health system and health care products, are providing up to 80%
subsidy to the small-scale organization, which are willing to promote their
organic health care products (Schoemaker,
Day & Snyder, 2013). Thus, it will be another opportunity for
Nutrasure to achieve growth by acquiring the subsidy. On the other hand,
government also takes several initiatives to generate more income through
health care sectors, which are majorly using organic raw materials (Somsuk & Laosirihongthong, 2014).
Abbott is the strongest competitors of
Nutrasure, which recently launched an organic medicine for those patients who
are suffering from obesity. (Spieth,
Schneckenberg & Ricart (2014) stated that approximately 63% people
in the UK are willing to use Abbott products and they reveals very positive
response from these products. Apart from that, Abbott is practising lower price
in the UK in order to retain most of the potential consumers. Ceuta and Merck
also expanded their business in international market by adopting effective
international strategies lie globalization, isolation and integrated services (Blackburn, Hart &Wainwright, 2013).
Both of these two companies acquire a major step towards segmentation of the
entire market (Wu, Straub &
Liang, 2015). However, segmentation strategies are different for a
domestic and international market. Ceuta has been segmented the entire market
according to the product differentiation on the other Merck has segmented the
market by adopting price differentiation (Chang & Lee, 2013).
Apart from that, these organizations
have been provided with their services in both urban and semi-urban areas,
which create an extra opportunity of the business. According to World Economic
Data, there are more than 56% of the overall population who use organic health
care products are from semi-urban areas (Business Planning, 2017). However, Ceuta has targeted the old age
group and teenager groups who are severely affected by diabetics and obesity
respectively. Moreover, as the organizations are providing their products in
the UK since decades they are having very clear idea about the market
segmentation and optimality of this strategy. In most f the cases Ceuta
practices high pricing strategy or the teenagers and high-quality strategy for
the old age group customers (Business
Plans and Ideas, 2017).
Nutrasure can get a precise scenario of
the market analysis and market segmentation by assessing the strategies of
their competitors and following the achieve revenue based on their performance
level. On the other and Nutrasure might expand their business subsequently in
the rural and semi-urban areas where they can able to get more customers who
are suffering from several generic diseases. Glamour is another strong competitor of Nutrasure, which
reaches their business goal by achieving more than 25% of the total market
share by the end of 2016 (De Reuver, Bouwman
& Haaker, 2013). Glamour provides high-quality organic beauty
product in UK market. Recently a study was conducted by that particular
organization in UK, which is mainly dealing with organic food and non-food
products. The study reveals that, at present, most of the non-food organic
firms, which are providing merely beauty products like body lotion, face cream,
shampoo, organic oils and other health care products, immensely reached the
growth level by 5% in average (Demil et al. 2015). On the other hand,
Glamour targets the customers who are in age group of 35 to 50. They have done
several types of researches in organic world and received some effective skin products,
which work as anti-aging.
Glamour
is having a great reason behind choosing the customers within age group of 35
to 50, they are the first who discovered that the working people lie in this
age group are mostly suffering from different types of skin and hair problems (Dibrell, Craig & Neubaum, 2014). Apart
from, they have more than 56 thousand customers in suburban areas and 48
thousand customers in main urban areas. Glamour has recently explored their
branch in London and Manchester by targeting the high-class customers (Fayolle, 2013).
SECTION EIGHT (1200 words)
Production:
In
the preliminary stage, Nutrasure is going to launch only skin care products and
organic medicines for particularly those patients who are suffering from
diabetics and obesity. Organization has prepared a projected production plan
based on sales plan, which clearly states that the average production would
increase with per unit increase in sales.
|
Time period
|
Skincare product (unit)
|
Organic medicines (unit)
|
|
1st month
|
160
|
140
|
|
2nd month
|
170
|
150
|
|
3rd month
|
180
|
160
|
|
4th month
|
190
|
170
|
|
5th month
|
200
|
180
|
|
6th month
|
210
|
190
|
Table 3: Projected production
(Source: Created by author)
Figure 2: Production of skin care product
(Source: Created by author)
Figure 3: Production of organic medicines
(Source: Created by author)
According
to the graphs, average production of both organic medicines and organic skin
care products increasing by 6% by considering the base moth as a 1st
month and base unit as 160 and 140 or skin products and organic medicines
respectively (Aspara et al. 2013).
Delivery of customers:
Being
a manufacturing company Nutrasure needs an effective supply chain in their
initial target market. Being a start-up organization Nutrasure is likely to
promote their products and services in urban and semi-urban areas in the UK. In
these decades, people are more willing to buy their products from the online
store, which takes less time and lower cost for different kinds of food and
non-food products (Blackburn, Hart &
Wainwright, 2013). Particularly in a case of organic beauty product,
Nutrasure should provide online buying facilities, which might increase their
sales in first two-quarter. In UK, imported organic beauty product signifies
£259 million from which 68% comes from China, Italy, Mexico and Chile (Chang & Lee, 2013). This genuinely states
that UK market consists of higher demand of an organic product, which takes
more than 1/4th of the entire population. On the other hand, the
retailers need to cooperate with the retailers for inventory accumulation,
creating, operation online stores, and other activities related to supply chain
management (De Reuver, Bouwman & Haaker,
2013).
Payment:
Payment
system should be very user-friendly as a nonprofessional can get access to it.
Company might adopt several advanced technologies like online banking, cash on
delivery and transaction through credit and debit cards as people might feel
comfort with their present status. However, at an initial stage main mission of
the organization is to produce high-quality health care products at lower cost
in terms to retain new customers (Demil et al. 2015). Company also need
to provide effective services for those customers who frequently facing
challenges through online and offline shopping. According to a study conducted
in the UK based on the organic products to know the satisfaction degrees of
customers. The study exposes that, more than 46% people are facing trouble with
payment system whereas, 22% people are unsatisfied with the product quality and
price (Dibrell, Craig & Neubaum, 2014).
Suppliers:
UK market
enriched with numerous suppliers of raw materials for producing organic
healthcare products. Therefore, Nutrasure might seek for potential suppliers
from where they can get their necessary raw material. However, UK government
has been stated ceiling price for the fruit and green vegetables, which are
used in a production of health care products. According to an annual report of
Glamour, there are 42 main lines for wholesale suppliers who actively
participate in production operation (Kala, 2015).
Apart from that, quality and price of organic beauty product majorly depend on
the commodities and materials supplied by the respective suppliers.
Premises: Nutrasure needs to create a suitable
premises plan for its factory and office. As a turn on firm, the company does
not have enough money to invest in the business. According to Hossain (2015), in initial stage average cost
of production, take higher preference rather than the fixed cost. Thus, the
office building and factory plan should not take the higher cost in terms to
meet the cost of the production operation.
Equipment:
Production
manufacturing, packaging and distribution of Nutrasure required several
advanced types of equipment and technologies to decrease the entire operation
cost. However, it is difficult to invest in the research and development in the
preliminary stage, but in order to upgrade the technologies and equipment
investment in research play, a preponderate role (King,
Nordquist & DiGiacomo, 2015). Apart from that, to cope up with the
over growing competitive market where choice and preference of individual
customers habitually changing over a period in respect to their lifestyle and
income level organization should adopt multitasking technologies and system
which are having the capability to grape the new innovation and modernism (Hossain, 2015).
Transport:
Nutrasure
should situate their factory building by locating the markets of raw material.
Moreover, in most of the cases, these markets are placed in rural places. Thus,
in preliminary situation firm should target the location for their factory
building and office in most of the interior and rural region in UK (Spieth, Schneckenberg & Ricart, 2014).
Apart from that, if the organization prepared a transport chart by locating
their targeted customers and adopt a free delivery system in and around the UK
then it will not only reduce the cost of transport but also retain new
customers and increase the revenue. On the other hand, a decrease in transport
cost immensely decrease the production cost of the organization (Schoemaker, Day & Snyder, 2013). Therefore,
it should be a primary objective of the organization to reduce transport cost
by allocating proper plan for factory and office buildings.
Legal requirements:
Legal
agreements are the pillars of ant start-up business. Without having, a legal
clarification a business cannot access to the current so-called business
market. Before starting Nutrasure should take permission from the government of
UK and should sign several clauses, rules and regulation regarding the
corporate business to get the access (Business
Planning, 2017). Moreover, the firm should appoint a legal counsellor
and lawyers to manipulate a different challenging situation in an internal and
external environment.
Insurance:
Insurance
is the elementary but preliminary factor for any kind of business. In order to
avoid any kind of market risks and business hazardous a business entity always
need to sing a suitable insurance plan in the preliminary stage (Somsuk & Laosirihongthong, 2014). According
to a study conducted in United State to go through the current insurance signed
by the corporate organization about 87% of the total profit organizations in
United State has signed major insurance plan to resists any kind of business hazardous
from unexpected natural calamity (Business Plans
and Ideas, 2017). An appropriate insurance plan not only smooths the
business in the time of recession or any global financial crisis, it also
provides safety to those staffs who are working in the organization. According
to Wolf & Floyd (2013), large-scale
industries like glamour, Organic and Natural Essence provides medical insurance
to their responsible and meaning full employee.
Management and staff:
Being
a manufacturing firm, Nutrasure is going to produce labour intensive goods and
services in domestic market of UK. Thus, in order to mitigate extra labour cost
organization might recruit the skilled labours having enough potentiality for
the respective job post. In UK, corporate organizations use to bear lump sum
amount of cost for the manual works or labours whereas the capital-intensive
business bears relatively lower cost for manufacturing and production operation
(Wu, Straub & Liang, 2015).
Therefore,
management needs to be more attentive to selection and recruitment process.
Often it happens that a particular business entity is not getting properly
skilled labour required for their business. In the contradiction, Nutrasure
might arrange a training session for the unskilled labours or unprofessional
staffs (Spieth, Schneckenberg & Ricart, 2014).
Trainer should be enough potential and professional having the ability to train
ground staff to factory staff with adequate knowledge about entire
manufacturing process.
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