Business Plan Development Groceries

Introduction

My group established a business plan, and named the business as “GROCERIES ’2’ U.” The business idea is an online shop that delivers items to customers either through the supermarket, to the retailer and to the distributor, or directly from the business to the distributor, and finally to the consumer. Significantly, this business idea purposes to provide customers with their needed products, especially when they are smaller shoppers, professional workers, or disabled and elderly persons, and also people who have emergency needs.

This paper provides a personal reflection on the evaluation of the processes undertaken to date in the development of my groups’ business plan (Business Model Canvas). In this regard, I will present my role in every step of developing the plan. Moreover, in detail, I will reflect on the following aspects. First, to what extent did the analysis conducted in week 2 predict the performance of my group? Second, to what extent did the tools taught in the module assist in clarifying my business idea? Notably, in light of my reflection, I will take necessary steps in ensuring a successful outcome for my final report, whereby I will present the ways in which the processes would differ if I were adopting the role of an entrepreneur.

During the first phase (formation) of a team’s life cycle, the members present themselves and as such, they behave independently. There is no trust amongst the members, and the major discussion revolves around defining the task scope (Tuckman et al., 2010; cited in Berlin et al., 2012). During this phase, my team established the scope of the project and was able to conduct and analyze the customer segment for GROCERIES ’2’ U. We noted that because the customers can sign up to the business app, professional workers (who have little time for shopping), disabled, as well as elderly people could be served with convenience. Moreover, my group also came up with the idea that this business plan could also serve small shoppers, who can order their products, either from the business app or from the distributors and as such, those products are delivered by a business driver. Additionally, we also noted that this business could serve people with emergency needs perfectly, whereby, when an order has been made, the business delivery team purposes to deliver the item (s) to the customers on the same day and within a short time. My role in this process was to conduct a market research and select the target customers that can offer the greatest potential to the business. Based on an entrepreneurial mindset, I could have included indecisive buyers, as “GROCERIES ’2’ U” allows customers to select alternative products, and offer exchange opportunities for products.

The second process was still on the formation phase of the team. We started knowing each other’s pitfalls, and we were able to visualize our different preference roles, and were as well able to provide unique contributions to the team (Gilley et al., 2010). My group conducted preparation of the value proposition and we noted that some of the value propositions “GROCERIES ’2’ U” have are offering same day delivery to customers, and within a short time, all major supermarkets would sign up to the app. Moreover, other values positions are having efficient slots for orders, payment per delivery (where if the business delivers more, it is paid more), having secure online payments, and having a significant price comparison for end of the basket. My role was to provide my contribution towards establishing the unique value positions for the business. However, whilst considering an entrepreneur’s mindset, I would have first created a positioning statement, and in doing so, I would have defined the business’ overall mission. Additionally, I would ensure that the value positions are more concise and purpose to appeal to the strongest decision-making drivers for consumers.

Storming stage

After the formation stage, my group got into the storming stage. The team members brought forth new ideas, thus causing a rise in competition. We had clashes between different personalities (Batenburg et al., 2013). However, we came into a consensus. The third process was establishing the value position canvas, and this was categorized into six categories, including customer jobs, product/services, customer pains, pain relievers, customer gains, and finally, gain creators. The value proposition canvas aids in defining three major tasks, which the business will purpose towards accomplishing (Antikainen & Valkokari, 2016). First, it aids in figuring out the business’ point of difference, and this includes the unique attributes that set it apart from its competitors, and thus, attracts customers to its offerings. In this regard, my group defined the attributes that consumers genuinely need from the business and the values that customers only receive when they engage only with “GROCERIES ’2’ U.” Second, the business position canvas aid in determining the needs of the customers, and ways of serving them best (Joyce & Paquin, 2016). Thirdly, it aids the group in determining the place of the business in the overall competitive landscape and this is provided in the category of customer gains, and gain creators (Antikainen & Valkokari, 2016). My role in this process was to determine the overall market position for “GROCERIES ’2’ U” before the value position canvas was created and contributing significant factors within the six categories of the value position canvas. However, based on an entrepreneur’s mindset, I would encourage that my team establishes an intuitive value position canvas that is easily understandable, without needing any further explanations, owing to the fact that it forms the foundation of everything that the business seeks to communicate (Pinto et al., 2018).

Still on the storming stage, we were able to evaluate various ideas objectively (Pugalis & Bentley, 2013). As a team, we were able to build a constructive working relationship whilst solving various conflicts, which emerged. The fourth process was establishing the distribution channels and my group identified two. The first was from the B2B - Groceries ‘2’ U supermarket to retailers and to the distributor and the second was from B2C Groceries 2 U to the distributor and finally to the consumer. My role was to come up with a suitable distribution channel from the products to be produced by “GROCERIES ’2’ U.” However, based on an entrepreneur’s mindset, I would have included an option of B2B Groceries 2 U to the distributor to the consumer, in order to avoid time wastage of using the retailer as an intermediary.

Norming stage

We got into the norming stage, and as such, we were able to make significant decisions collectively. Our roles were more clarified, and we enforced a harmonious working practice (Kiweewa et al., 2018). The fifth process was establishing customer relationships and my group noted that “GROCERIES ’2’ U” would have a website, social media platforms such as Facebook, Instagram and Twitter, and live chat. My role was to come up with various means of online connection with customers, and the rest of the team collectively selected the three. However, having an entrepreneurial mindset, I would encourage the use of emails to reach the customers, as some customers are more active on email.

Still on the norming stage, my team coordinated perfectly, owing to the fact that we all knew the tasks we do best and as such, no conflicts arose (Natvig & Stark, 2016). The sixth process was establishing the business’ revenue system and my group came up with the following. First, charging 15% on top of the customers’ basket, charging for slot urgency, and contracting with supermarkets paying contracted fees for the services of the business. My role was to identify various ways that the business could generate its revenues. Considering an entrepreneur’s mindset, I would include promotion offers, in order to increase sales.

The seventh process was establishing the key resources, and these included social media and call time, laborers, retailers, and transport forms. My role was to highlight various key resources for “GROCERIES ’2’ U.” However, as an entrepreneur, I would ensure that I include key shipping, as well as storage facilities as key resources.

Performing stage

Pugalis & Bentley (2013) notes that this is a highly performing stage, and the team understands its core mission, as well as goals. At this point, the team becomes more knowledgeable and motivated. Team members can make significant decisions without the presence of the team leader

The eighth process was the establishment of key activities and these included to receive orders, provide customers with cheap prices, notify retailers, and sending the driver to deliver products to the retailer. My role was to ensure that all the important activities are shortlisted. However, as an entrepreneur, I would encourage my group to adopt new themes, as well as designs for conducting business in every season, to avoid monotony.

The ninth process was to establish the key partners of the business and my group listed major retailers, employees/drivers, 6 shareholders, customers, sponsorship companies, PayPal, as well as external agencies for drivers, acting as backup. My role was to provide suggestion on key partners that the team could have. Based on the suggestion of an entrepreneur, drivers were not to be regarded as partners, as they are the business’ human resource.

The tenth process was establishing the cost structure, where the group noted that depending on the drivers’ ages, they would be paid ranging from £5.90 to £7.83. Moreover, they would receive a commission of 10%, when they deliver at a given time, external agency fees, as well as website fees. My role was to establish the rate of payment of the drivers from April 2017-March 2018, and from April 2018. Based on the perception of an entrepreneur, I would encourage that all drivers be paid equally, in order to encourage motivation, equality and diversity.

To what extent did the tools taught in the module assist in clarifying my business idea?

Significantly, my group utilized various tools taught in this module in clarifying the business idea. Firstly, the team used the 4Ps (Product, Price, Promotion, Place) marketing tool in establishing the customer segment, the pricing strategy, the modes of promoting its products, as well as places (channels of distribution). The 4Ps components aid in establishing an effective and successful business plan, as it assists in meeting the demands of the market and maximizing on business profits (Ettenson et al., 2013). The figure below illustrates the 4Ps model

Significantly, my group utilized various tools taught in this module in clarifying the business idea. Firstly, the team used the 4Ps (Product, Price, Promotion, Place) marketing tool in establishing the customer segment, the pricing strategy, the modes of promoting its products, as well as places (channels of distribution). The 4Ps components aid in establishing an effective and successful business plan, as it assists in meeting the demands of the market and maximizing on business profits (Ettenson et al., 2013). The figure below illustrates the 4Ps model

Product refers to the item or service that the business intends to sell to customers. In this regard, the product is targeted to various consumers who find it valuable to them. Price is considered a vital component in the 4Ps model (Khan, 2014). The pricing strategy is assigned to a product, based on the labour utilized, production cost, government policies, as well as regulations, and also the competition faced. Promotion refers to the promotional, as well as selling techniques, which a business adopts in persuading prospective buyers into purchasing a product or a service. This includes sales promotional measures, advertising, direct marketing, among others. Place encompasses all the activities that a business undertakes in ensuring that the final product reaches the consumers. This includes the distribution channels, transportation and logistics. Notably, the availability of a product at the right place, time and quantity to customers is regarded as a crucial decision, in a product placement (Ettenson et al., 2013).

Secondly, my group utilized the Resource-based View (RBV) analytical tool in analyzing and interpreting the strategic resources of “GROCERIES ’2’ U,” in order to formulate strategies that can assist in achieving sustainable competitive advantages (Degravel, 2012). Notably, resources can be regarded as inputs, which enable a business to conduct its activities. As such, internal resources of a business determine its strategic choices, whilst competing in the external environment. Based on the implications of RBV, all resources that are in possession of the business are regarded as its strategic resources (Lin & Wu, 2014).

Thirdly, my team utilized the Value Chain Analytical tool, which aided in identifying the business’ primary activities, as well as support activities that create value towards the production of the final product (Kannan & Choon Tan, 2010; cited in Fearne et al., 2012). In this regard, these activities are analyzed, in a bid to reducing costs and increasing differentiation. In other words, value chain represents various internal activities of a business, which purpose on transforming the organizational inputs into outputs (Jurevicius, 2013). The goal of my team towards adopting this analytical tool was to recognize the valuable activities of “GROCERIES ’2’ U,” and also identifying those which my group could improve in order to enhance a significant competitive advantage. The following figure presents Porter’s value chain analytical model:

Conclusion

From the above provision, it is evident that my group was successful in developing a business plan for “GROCERIES ’2’ U.” Tuckman’s theory illustrates the stages, which my team passed through whilst trying to make the teamwork a success. Overall, it is evident that the performance of my group took ten stages, which depicted a success in each of them. Moreover, the tools used in this module such as RBV analytical tool, 4Ps analytical tool, as well as the value chain model assisted in clarifying the business idea.

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