The YouCook Cooking Organization - Business Plan Example

Business Plan: YouCook Table of Contents Table of Contents 2 Executive summary 4 Business Analysis 5 Marketing strategy 6 Supplier Details 8 Pricing Policy 8 Competitor Analysis 10 Plans for YouCook 11 Management plan 12 Future staffing needs 13 Financial Planning 13 Break-even analysis 13 Profit and loss statement 14 YouCook Balance sheet 15 Risk Management 16 Recommendation 16 Conclusion 16 List of Reference 18 Executive summary Every country across the globe differs in meals they consume. The difference in meal consumption is due to different climate and soil as various plants survive or different weather and soil. Nevertheless, food substance such as beef, mattock, and pork are common worldwide because many countries, practicing animal agriculture, rear the animals. Many people, however, have a thirst to consume meals from other countries for different purposes. Some consume just to have a taste of what other people eat, commercial purposes and when figuring out a new meal. Apparently, many people are yet to taste meals from other nations since it is not readily available. The unavailability of the meals creates a business opportunity for executives. The executives can transport meals from other nations and sell it to people in their country. They can also, learn how to cook the meals and sell it. YouCook organization is a cooking organization that used the opportunity to generate money. The organization is experiencing high-profit rates as few organizations have taken a risk in the opportunity created. However, the success has been accompanied by hard work and intelligibility when handling the activities. The organization has also employed efficient marketing strategies that have assisted the organization to enjoy benefits of hard work. This paper, therefore, strategically explains and explores the business plan employed by YouCook Cooking Organization Keywords: Marketing mix, price policy, management plan, financial plan, cash flow projects and industry ratio Introduction Many companies in United Kingdom have practiced selling meals. Notably, few have been successful, the rest either quit or started a common, hotel, motel, bar or small restaurant. The number of people quitting the business faces many challenges, as it is not an easy task. In addition, they face stiff competition from already established restaurants selling food. Despite, the number of organization quitting the business, YouCook has held on, and it is currently experiencing high-profit rates. The road to success has not been easy as the company struggled through a lot. Currently, it is facing challenges that are weak that its foundation. For any business to face challenges successfully, member should create a plan that will act as a guide towards their objectives. This paper elucidates clearly a fundamental business plan applied by YouCook. The business plan involves the business analysis, marketing strategy, financial plan, and other factors that are essential in a business plan. Business Analysis A middle-class family living in Manchester started the organization as a hotel in 2007. Currently, the organization sells food to U.K citizens. Meals sold by the organization are locally made. However, they manage to import food substance from other continents and sell them to U.K. Nevertheless; the organization has specified on selling one full meal for one person. They include the ingredients and recipe. Their uniqueness has made the organization popular especially to those who love international meals. The people who have contributed to the success of the organization operation are the managers as they ensure everything is in order and employees as they have ensured high-quality products and service. The organization mission is to expand the target market, as it believes may people out there will love their services. The organization also visualizes having a stable market and establishing branches in U.K and some countries in the world. The organization, however, has been successful regardless of it multifaceted nature. Marketing strategy A marketing strategy is important as it acts as a blueprint for the activities an organization should undertake. Marketing strategies involves examining resources, marketing, and consumer loyalty. Preparing a marketing strategy is also important as it helps the organization to be well equipped when risks occur. YouCook marketing strategy involves many examining marketing mix. YouCook organization decides to sell meals since it is a rare business in U.K. For this reason, they will experience high number of customer visiting the premises. The prices for the products differ since the ingredients are different. Moreover, the recipe also determines the price of a product. Products with imported ingredients are higher than those ingredients available in U.K. In addition; meals requiring tough recipes are higher than those with simple recipes are. In a general view, the prices for the products are available, depending on the customer’s preference. Affordability of the products is a crucial factor that attracts many consumers. Manchester is one of the popular cities in U.K.; population is also high as the city has many business activities. YouCook is strategically located at the center of Manchester. Therefore, it experiences many customers from areas surrounding the cities. The strategic location has also been an advantage in terms of transporting products. Regardless, of YouCook advantages, it faces stiff competition especially for companies selling food products. The stiff completion has and is still a factor that contributes to slow growth. Nevertheless, YouCook organization plans to include other services in order to reduce stiff completion and dominate in selling food products. The organization is second after McDonalds; a food restaurant managed from U.S.A, organization selling food substances. Different customers have various preferences. YouCook has divided the customer preferences and developed an efficient market segmentation. Market segmentation, however, depends on customers’ demands. In addition, different food products experience high demands at different times. The organization, however, has an articulate consumer behavior. They know when a food substance will experience high or low demands. However, people from different areas prefer different meals, for instance, consumers in Scotland prefer Asian meals. Therefore, they will transport more Asian meals than any other meal. African meals, however, have high demands as many people want to taste African dish and have knowledge of how to prepare them. The organization, therefore, imports excess ingredients from various countries in Africa in order to ensure there is enough supply to the consumers. YouCook organization plays the role of a manufacturer and a retailer. It plays as retailer to consumer near the premises and a wholesale to organization located in other states. The company target supermarkets, a small restaurant, and other organization selling food substance. The organization also uses methods such as online business and social media sites to sell its items. The organization website has an option where customers, whether retailers or wholesalers can order their products. The website is one of the important ways of gaining ensuring profitability as it saves time and resources. The social media sites help in reaching many consumers. Apparently, the organization does not use social media sites intensively since they are yet to locate the right market for their products. YouCook organization is experiencing a continuous increase in number of consumers due to the benefits of their products. First, the organization sells a variety of food products. The consumer, therefore, enjoys an opportunity to choose products they prefer most. Price for the products is also affordable. Affordability gives consumers an opportunity to enjoy YouCook products. Consumers can also have a taste of meals and have a recipe for meals made from other countries. Customers will purchase products from YouCook organization due to various reasons such, the strategic position, transport services, and customer intimacy. The strategic position of YouCook makes it possible for consumers to reach the store. Retailers buying products from YouCook find it easy to transport products to and from YouCook. Employees at YouCook organization exemplify positive customer intimacy in order to ensure customers visit them again. Before, a customer decides on which product to purchase the employees explain to them what is in each box. They also provide transport service for those retailers lacking transport means. The employees also follow up every customer who purchases products. They intimate relationship with consumers has upheld trust and closeness between them and the organization. Consumers also have an opportunity to purchase products that fit their pockets. Supplier Details Most ingredients come from local suppliers as people in U.K appreciate their culture by consuming meals made in their country. However, international meals come from different parts of the world. Meals from Africa come from suppliers such as Kenya, South Africa, Ethiopia, and Nigeria. Asian and Europe Suppliers come from, China, Malaysia, and Qatar among others. The organization is seeking to expand the supplier in order to offer more meals from different countries. Pricing Policy Demand and supply of ingredients are the main determinants of prices of products (Westwood, 2013). When customers highly demand their products, the company relatively raises prices of commodity and vice versa. Supply, in this case, will depend on consumer demand. The company will order more supply of ingredients when consumers demand is high. Competition is also another determinant for prices of YouCook products. When completion is stiff, YouCook reduces prices in order to attract more customers. In the case of competition, price policy will depend on the position of an organization YouCook being at the second place will reduce their prices if McDonalds competes manipulatively. A relaxed competition leads to relaxed and balanced prices. Location of wholesalers and retailers determines the price policy. YouCook charges more prices to those organizations requiring long distance transport. Seasons have a mild impact on the price policy, as there are those seasons where prices will increase others decrease Products sold at YouCook are different from products sold by all their competitors. Different product and service have helped in reducing competition stiffness and increase profitability. Other companies offer ready-made meals, YouCook operates differently. They include a recipe in their each box having specified ingredients. Each box has a full meal for one person. The full meal will enable a person to avoid cooking excess or fewer meals. The best part, however, is where the consumers have the freedom of cooking how they like according to the recipe. Operating as both a retailer and a wholesale enables the organization to experience a variety of consumers. This enables them to projects on the meals to offer in their future as they learn consumer preferences and demands. YouCook is different from other organization as it offers meals from other continents. Selling international meals has helped the organization to turn their attention from red ocean strategy. It has also attracted many consumers from other states as they get attracted to services and international meals. YouCook organization is also different from other organization since it offers regular training on consumers who find it difficult to understand terms used in the recipe. Unlike any other competitor, YouCook competitive edge is consumer intimacy. Employees value their consumers more that the products they sell, as they believe that consumers are the main determinants of profitability. Employees serve every customer, regardless of how many times they have visited YouCook, sufficiently such that the customer feels satisfied. Consumer intimacy has resulted in a constant increase in the number of consumers visiting YouCook for three years (Westwood, 2013). They have employed professional chefs who have a responsibility of writing correct recipes for every meal. The chefs also have a duty of explaining the correct procedure during preparing recipes in the boxes. The chefs also follow up the progress of consumers until they fully develop the cooking skills projected. The organization offers bonuses and promotion for loyal consumers. The competitive edge has increased the popularity of the industry across U.K land. Activities taking place on the organization website have increased the organization intimacy with consumers. It is on the website where the organization informs website visitor’s arrivals of new meals. On the website, consumers can communicate with employees, provided they are communicating matters concerning the business. Through the website, distant consumers can learn and get information about the recipes they want. Moreover, the website offers an opportunity where consumers can watch videos of how to cooks certain meals offered in the organization. People consume meals for different purposes. Some people consume for adventure, other as a requirement for a doctor’s while other for adding or losing weight. YouCook provides consumers an opportunity to use meals depending on what they like and afford. Competitor Analysis As discussed the YouCook organization is second on the second position in terms of organization selling food products. The organization faces intense pressure from the organization below it and the need to occupy the first position. Nevertheless, employees tirelessly work to maintain the organization on the second spot. Most organization competing with YouCook is located in other states. Despite, their long distant they depict a stiff competition for U.K market as every organization seeks to move from national to international basis. Apparently, also all competitors use similar strategies for attracting their consumers. They participate as retailers, except for McDonalds that sells wholesale meals to supermarket. Acting as a wholesaler has deli anted YouCook organization as a copycat due to its popularity. The organization on the third and fourth spot put YouCook organization in a vulnerable position since their values are close. The third organization has a welcoming website that has attracted many consumers from other competing organization. Service offered at the website put consumer at a position where they feel they are in control. The fourth organization has increased number of consumers visiting it as it offers free transportation of products. The free transport offer, however, has contributed to a steady decline in the profitability rates. The third organization fails to occupy the second position because they have poor face to face services. Low profitability rates have made it almost impossible for the fourth organization to reach the second spot. Other food selling organizations have newbie or have small-scale retailers. Plans for YouCook Every organization plans to offer better services today than yesterday. YouCook plans to expand their market to an international level. They want to establish new branches in different countries with the same name. However, they first plan to establish their first branch in U.S.A due the high population and demand for international meals. The organization also wants to want to introduce new recipes. For instance, they use the word African recipes for any meal prepared in Africa. However, they fail to identify the specific country that prepares the meal. They, therefore, plan to visit different African countries and learn different recipes for various countries. Visiting different African nation will enable them to introduce new meals and specification for meals prepared in a specific country. The organization also plans to introduce mobile information system in their online activities. They want to introduce an application where consumers can learn new recipes explained by chefs from YouCook. The application will also enable the consumers to interact with employees in the organization. The application will also enable consumers to make direct orders for different meals. The application will increase relationship levels between the consumers and the organization members. Mobile information system will help in saving time that consumers take when visiting the premises. Application will enhance profit rates, as the organization will transact with many consumers simultaneously. In order to ensure mobile information runs smoothly they will have to employ people with professional skills in information system. Management plan The organization structure consists of the manager, assistant manager’s cashiers, chefs, drivers, guards, and storekeepers. The manager is responsible for everything take place in the organization. Assistant managers assist manager in carrying out their activities. However, they ensure a smooth flow of product from suppliers to consumers through the organization. Cashiers have a duty to keep a record of all financial activities that takes place. They keep track of, money used to purchase ingredients for suppliers and money used to pack and sell products to consumers. Fundamentally, the cashier keeps track of profits and losses the organization experiences. The following tables show the number of employees and salary distribution. employees Number salary Managers 1 $2000 Assistant managers 2 $556 Chefs 4 $449 Cashier 10 $623 Storekeepers 4 $334 Drivers 6 $360 Guards 4 $334 Future staffing needs The above number of employees has contributed to the current position of the organization. However, the employees demand an increase in the number of drivers and assistant managers. Increase in drivers will ensure that products reach many areas having potential customers. The assistant managers will ensure a steady flow of products since the organization will experience increase in number of suppliers due to increase in demand. Financial Planning Break-even analysis The following table shows the break-even analysis of You Cook Organization Profit and loss statement YouCook Profit Loss Statement August 1, 2014 to February 5, 2015 Total Income Sales 700.00 Total Income $700.00 Gross Profit $700.00 Expenses Setting website $100 Advertisement $140 Supply Transport $300 Total Expenses $540 Net Operation Income $637 Net income $700 YouCook Balance sheet ASSETS Current Assets Cash $610,000 Recievable $1, 400,000 Prepaid expenses $ 50, 0000 Total Current Assets $ 2, 060,000 Property and Equipment $ 4, 600,000 TOTAL ASSETS $ 6, 660,000 LIABILITIES Current Liabilities Short-term notes payable $1,600,000 Current Portion of Long-Term Debt $ 1, 453,000 Accuruals $ 450, 000 Total liabilities $ 1,181,000 Long-term debt $ 1,976,000 TOTAL LIABILITIES $ 6,660,000 Risk Management Every organization is vulnerable to risk. Organization, therefore, should equip themselves with risk management strategies that ensure the organization is safe from risks when they occur. YouCook has ensured their premises and their equipment. They also have other stores where they keep their products. Each area has a filled fire extinguisher. In addition, they have a specific hotline for fire brigade. Risk preparedness increases security among the employees and business activity. Recommendation Despite the success enjoyed by the organization, they should improve on certain areas. First, they should ensure transport is reliable and readily available. All vehicles responsible for transporting goods should be ready at any time since consumers can order products anytime. The organization managers should also pay employees promptly as it motivates hem to work harder. Conclusion All organizations seek to promote their business and stimulate their economic value. YouCook organization participates in business activities by selling boxes having ingredients for a full meal with the recipe for one. It successfully indulges in competition, and the need to grow. Through the break-even analysis and profit and loss statement, it is articulate that the organization is walking towards it objectives List of Reference Westwood, J.(2013). Marketing Plan. London, Kogan Page http://public.eblib.com/choice/publicfullrecord.aspx?p=1135738 Read More