Business Plan for Online Retail Store for Groceries

Business Profile

Mission Statement

The company is based on the mission of availing grocery goods and products from all over the best suppliers with the aim of linking consumers with the available fresh-producing farms as well as the best-producing factories. The company would establish various stores in the country that would be run through an online platform to access and reach as many customers as possible by providing a criterion that would ease the purchasing and delivery process as the consumers would access the products through an online platform. Therefore, customers would access the online platform by placing an order, and the goods would be dropped at their doorsteps.

Vision Statement

The business is focused on providing the best experience in an online platform by creating an easy-to-follow process from perusing the available products and resources. The business would as well provide a transparent and secure way of payment that could be trusted and observe the value of every dollar used. Goods and services would be delivered fast enough as speculated at the time of purchase and time of delivery and then we would evaluate the instructions provided by the customers.

Goals of the Business

The company would be focused on minimizing the utility costs of every fiscal year by analyzing the importance of profitability by directly aiming at reducing the overall expenses by a range of 15%. Similarly, the business would as well increase their operations by improving the profitability by 10%. Another goal is to ensure customer satisfaction by listening to complaints of the consumers and ensuring appropriate steps are taken to reduce similar customer complaints (Weber & Badenhorst-Weiss, 2016). The business could focus on improving the efficiency of the company by increasing the productivity as well as growing the business from year to year. For instance, the plan would be developed and increased by a 25% after the first year in operation. Customer satisfaction and the product development would increase with the increase in the awareness through brand development and business improvement.

Legal Structure

The establishment of the online grocery would be made by obtaining a business permit from the authorities and other relevant legal documentation. First, the grocery business would require a trademark and domain registration which would include the website that the firm would be performing. Similarly, the business would need to be registered under Shop and Commercial Establishment Act which would offer a business permit. Other requirements include the Value Added Tax registration, Central Sales Tax Registration, Professional Tax Registration where all these works under the retail businesses (Weber & Badenhorst-Weiss, 2016). Additionally, the business would require signing agreements with major suppliers who would ensure a flow of resources and products in the running of the business and lastly, opening a bank account in the name of the business.

Contributing Services

The business could not develop without the help of influential individuals who would help the implementation of various services. For instance, a lawyer hired to protect the patent and legal documentation would be viable. Obtaining a lawyer would be the first step in implementing and analyzing the legal status of setting a company. A lawyer acts as an intermediary between the legal system and who advises the company officials in matters that would affect the running of the business. The lawyer would protect the business from exploitation from potential competitors as well as from suppliers who might breach their contracts. Additionally, an accountant helps in analyzing the financial progress of the company. The business’ aim is to maximize their profits with minimal expenses (Weber & Badenhorst-Weiss, 2016). Therefore, the accountant given the task to cater for the financial statements would help in analyzing the development of financial records as well as advising on any helpful steps that would see the business developing from a small business to a big company. Thus, a lawyer could be hired on a timely basis when the need arises, but the accountant would be required to stay in the office a daily basis.

Suppliers

The business is set to offer products and services ranging from fruits, greens, and other grocery products. Therefore, the main suppliers would be farms that focus on the production of similar goods preferably the fresh ones. Supply chain management would focus on the distribution of variable grocery products straight from the farm to the production. The business would be getting their products from the suppliers in their areas such as purchasing direct from the farmers. Similarly, the business would be obtaining their stock from brokers. Brokers offer a range of products from various farms as well as other production companies with an added profit margin. The process might involve purchasing in bulk or acquiring the exact amount needed by the customers. Additionally, the grocery business would buy from large companies that offer a range of grocery fresh products such as fruits, greens, and other farm products as per the needs of the consumers. Some products from big production companies may include dried products such as rice and cereals, canned fresh foods such as fruits, frozen foods such as meat, fish, or poultry, and vegetables.

Customers

The need for maintaining a flow of customers is based on the services and products offered by the business. For instance, the business management would focus on the customers’ satisfaction because of the competitiveness around the place of the business. The range of consumers of the business would range from the people living around the geographical area starting from families, bachelors, spinsters, hotels, school institutions, sports personalities, students, offices, and other companies that use various grocery products (Weber & Badenhorst-Weiss, 2016). Additionally, the customers are the main target market since they occupy the biggest percentage of the strength of the business.

Physical Location

The idea of growing the business from a small-scale to a large-scale is by analyzing the possible areas that could have a maximum business environment. For instance, Florida and Orlando would be the biggest business locations to broaden the idea. Similarly, having the advantage of being an online business would offer a wider consumer satisfaction because the business’ website would give the consumers an added advantage to place their orders for a free delivery service. The business would as well open several branches for people to access the products and services as well as relying on the online platform for easy and fast access to their products.

E-location

The setting of the online store would require the business to obtain an optimum site that would have a maximum availability that would offer a wide range of consumers willing to access the domain. Therefore, the business has chosen to use the Wix E-commerce domain system that has allowed its customers to obtain a user-based domain name. The name would be similar to the name of the business for easy recognition. The Wix E-commerce domain would give the business a platform to run their website by choosing a hosting provider. However, the system would require a technician with a web-hosting expertise in the running, management, and development of the website. The website would be accessible easily through the online platform by different consumers who would have an easy way of communicating, placing their orders, and payment options.

Products

The grocery business would offer various products ranging from fresh foods to dried products. For instance, the business would analyze the status of different consumers within the region that has different tastes of various food products. Therefore, the products should start from fresh products to dried ones as well as the frozen products. Some of the dried products might include rice, maize, beans, and all sorts of cereals. Similarly, the business would be needed to offer fresh products such as fruits, vegetables, dairy products such as milk, beverages, and fresh juices. Furthermore, there are perishable products such as meat, poultry, and fish, which requires freezing before consumption since they can be hazardous for human consumption if poorly stored. Therefore, the business would be required to have the freezing equipment to store such products that would not have a daily consumption rate. The business might as well offer other non-food products such as medicines and health products for emergencies.

Competition

The grocery business in the United States has a wider range of competition from various supermarkets and similar grocery stores. Therefore, the business is prepared to overcome the competition by providing spectacular products at all times where customers would never lack any form of product at any time. Similarly, the business is focused on developing the online store adding an advantage against other grocery stores by giving the consumers an opportunity to buy products online and acquiring a free-delivery service. Additionally, the grocery store would be located at the center of several businesses that have a wider range of customers starting from schools, residential areas, hotels, and tourist attraction sites. Furthermore, the parking area is wide enough to hold a bigger population offering a wider consumer thus; indicating that the consumers would have a space to come in and out of the store at different times. The employees in the grocery store are well-organized to offer satisfaction towards the customers by providing directions and offering packaging services to the purchased products. Similarly, the online platform would be an added advantage that would cater for the customers that would not have time to visit the grocery stores. The free delivery services would outdo the competition where consumers would only need to visit the website by placing their orders and paying through regular payment procedures.

Business Background

The Perimeter Grocery Business Company would be focused on providing goods and services ranging from perishable foods and nonfoods to a wider variety of consumers. The business would be located in the Orlando in the Florida. The strategic location is capable of acquiring and accessing the availability of sufficient customers from school institutions, hospitals, hotels, as well as well-urbanized residential areas. Similarly, the Perimeter Grocery business would be offering various products such as fresh fruits, frozen food products, and dairy products such as milk, vegetables, and dried cereals in their categories. However, the competitive nature of the business competing with the available supermarkets and similar grocery stores would be based on the availability of an online platform that would help the Perimeter Grocery Store maintain and acquire new consumers. Therefore, the business is focused on the provision of a free delivery system where the customers would be placing, purchasing, and paying for their orders online without leaving their premises. Furthermore, the business would be having experienced employees who understand the nature of the online business through the incorporation of an adequate management. The overall team of the Perimeter Grocery Store in the several branches would cater for the larger population all over the Florida region by proving unending products at a discounted rate to beat the competition from other grocery businesses.

Business Plan Purpose and success factors

The business plan is made to define the strategies that would be employed by the company officials in achieving a profitable criterion focusing on major events that might take place in a business development. Similarly, the business plan is mainly an objective where a company bases its vision in a cohesive manner. A company would fail without a predetermined business plan that acts as a roadmap to its success. Additionally, the business plan would help the company attain a certain amount of financing from financial institutions. For instance, a bank would not loan or finance a business without a foreseeable plan with success objectives. Therefore, the business plan would help the company implement their strategies in realizing a succeeding procedure ranging from the first step towards the last step of maintaining their customers.

Environmental and Situational Analysis

Characteristics of the Online Grocery Industry

The online business has developed recently with the rise of technology advancement as well as internet overwhelming. However, the online grocery has not been accepted in every locale bearing in mind that most people have minimal chances of the accessing internet as well as the time to shop online. Therefore, the online grocery industry would prosper if the entrepreneurs or online investors assess the reasons behind the failing online industry. Looking at the characteristics of an online grocery in the market could welcome new ideas that would help any business willing to invest in the online market. For instance, consumer motives, consumer concerns, and business models would determine the progressive development of an online grocery industry.

Consumer motives

The consumers have the power to determine the success of any business. Therefore, the number of consumers who could have access to their products and services could determine the response a company could get by placing their business in an online platform. For instance, the eBay has proved the development of online business by recording massive sales in the United States. Similarly, an online grocery industry could as well develop through implementing similar strategies by luring the customers to purchase or do business in an online platform. The Perimeter Grocery Company should focus on placing the incentives that suggest the consumer motivation towards attaining new customers as well as maintaining the available customers.

Looking at the consumer motives, a company should base their market research through analyzing the available consumers who are capable of accessing or purchasing their online products. For instance, the current technology development has an access of a computer or a Smartphone and access to the internet service. Therefore, people having such tools could utilize their opportunity to peruse the available products and services offered by a certain company in the online platform. Additionally, consumers at the age of 24-m6 are capable of using the internet to purchase for several products that suit their needs. Similarly, couple with a two-career program as well as children would utilize the availability of internet by purchasing products from the online industry instead of using their time to visit stores. Simple services such as free delivery would as well interest the consumers in purchasing their products online regardless of the added costs. The other consumer motives that would increase the purchasing rate are price, convenience, services, and product varieties. For instance, an online market offers a range of products with different prices that the consumers have the chance to choose what they want as well as investigating the available discounts offered by an online company. Therefore, the online grocery company should focus on the steps and incentives that get the consumers’ attention.

Consumer Concerns

The online grocery industry has been affected by the response from the consumers that determines the future of their businesses. For instance, a concerned consumer might place a specific order for a product, which would be followed by three steps in deciding whether they would ever repeat the same process. Online business or customer concerns have three steps namely pre-decisional, decisional, and post-decisional phase. The pre-decisional phase is comprised of the activities followed after seeing an online platform advertising various products. The consumer would require making a sound decision before placing an order, and when that order is placed, the consumer would determine whether they have a positive or a negative feedback of the ordered product in the decisional phase. The nature of consumer satisfaction would determine the next phase where the satisfaction level would guarantee the post-decisional phase.

The unsatisfied customers will claim that they would never place an online order for a certain product. Other satisfied consumers would choose to stick to the online purchasing depending on the services or products they had earlier purchased. For instance, most online grocery customers had provided their views on the purchasing of food products. Some claimed that they would not recommend purchasing perishable products such as meat from online industries while others had recommended the online purchasing claiming that the services and products from an online shopping were of good quality and timely based. Therefore, different consumers have diverse response towards the development and reliance of online grocery industry. Any upcoming online company should analyze different perspectives of their customers before investing in the online business. The Perimeter Online Grocery Company has recorded various techniques such as obtaining consumers’ views towards the product development of the grocery industry.

Business Models

The problem facing the e-commerce grocery industry is the unavailability of a sensory characteristic of the products sold online. For instance, consumers have opted out of purchasing from an online store due to lack of choosing options since they could not touch or smell the products they are about to purchase. Similarly, the online business model could not ascertain the convenience of product delivery as some customers might not rely on the time placed for the scheduled delivery. Therefore, the model seen in the e-commerce grocery stores requires the management of the online grocery to prioritize on the availability of manual selling popularly known as pure-plays. The strategy is vital due to the inconsistency of an online market. The online market could be faced with various challenges when meeting the consumer needs thus; showing the need for backup options such a retail storage services where customers would be coming to pick their orders regardless of the existence of the online option.

Additionally, the business model in the online platform might give the consumers a hard time when accessing their website. For instance, large documentation or large pictures of the products advertised online could be a problem in the process of downloading. This is a disadvantage due to the time is taken by a customer to peruse the entire website trying to choose what to take and to see the available data. Therefore, the Perimeter Online Grocery Company should focus on realizing the entire business characteristics with the aim of retaining the available customers as well as acquiring other consumers.

Competitor Analysis

The competition in the Florida, Orlando region in the online grocery business is now becoming stiff. Many branches of recognized and established online grocery companies have expanded their businesses to the region offering a hardship towards the implementation of the new Perimeter Online Grocery Business. For instance, companies such as Wal-Mart, Amazon Fresh, and Garden Grocer Inc. have begun to establish new stores in the region. Their latest announcements on the will to open their branches have given the new business a competitive disadvantage. Amazon Fresh is known for their superiority in the online business venture due to their succeeding years. They offer various products ranging from fresh foods as well as frozen meat. Their services might include a subscription fee to their royal customers that offer a free delivery thus; making it hard to snatch their customers. Additionally, Wal-Mart Incorporation is another online grocery venture that has offered competitive disadvantage towards the newly established or upcoming online grocery businesses such as the Perimeter Online Retail Grocery. For instance, the Wal-Mart Inc. has tried to include the Curbside procedure where the customers would be placing their orders online and specifying what time they would want their goods to be delivered. The delivery services are charged with the course but at a discounting rate meaning that orders over $50 have a free delivery unlike the Amazon way of offering a higher rate in delivery fees. Similarly, the Garden Grocer Inc is based in the Orlando area and focuses on hotels by providing products and services to visitors and tourists at a good rate.

All the competitive companies have similar products probably with similar quality. The difference comes from the services rendered and the prices offered. For instance, the Amazon did not start by delivering the products but delegated that obligation to Instacart group that focuses on doing shopping for consumers for a fee. Therefore, the new Perimeter Online Grocery would strategize new measures that would sustain the business by acquiring ways that would lure the consumers for their services. For instance, the management should focus on ensuring the delivery services are convenient and without errors such as failing to deliver some ordered products. Similarly, the service fee for the delivery should be low compared to the competitors’. Furthermore, as long as the company is making the required profit margin, the long-run advantage would benefit the company’s reputation by winning the competitive economy.

PESTLE Analysis

Political Factors

The overall functioning of the Perimeter Online Grocery Company will be performing through a stable political stability in the United States thus; offering an environment that would be perfect for its development. Similarly, the tax rates, legal functioning would be affecting the business as they would be determining the profitability of the business. Additionally, the business would be required to provide adequate employment opportunities for the improvement of financial stability of the nearby population.

Economic Factors

The profitability of the Perimeter Online Grocery Business would be determined by the economic factors within the region. For instance, the demand and supply curve affects the overall financial statements. Similarly, the taxation rates, policy changes, market share value, household incomes, and the country’s economic stability would as well determine the profitability of the business. Therefore, the business would be focused on analyzing economic factors that would affect the performance of the business.

Social Factors

The healthy issues affecting the population have made the people rethink of the types of foods they take. The change has made many people choose what to purchase or what to forgo through the realization of social factors. For instance, consumers are now purchasing nonfoods that would not affect their health. Similarly, organic foods are becomingly rampant in the region affecting the supply of the foods in the store. Therefore, the business is focusing on reading the social activities and demand of nonfoods in an effort of going with the flow of the population.

Technological Factors

The technology development in the globe has added an advantage to the advancement of the online business. For instance, computer software and the emergence of the internet has brought consumer awareness and improved the delivery of products and services as well as in the transfer of funds conveniently. Similarly, the Perimeter Online Grocery Business would develop by welcoming similar strategies by abolishing the hand-picking way of doing business.

Environmental Factors

The global target of minimizing the global warming has been an issue for all business and company enterprises. The Perimeter Online Grocery Company is not an exceptional because it is obliged to sustain the required release of carbon into the atmosphere. Therefore, the business is entitled to take measures that would reduce the effects of carbon in the air. The move would affect the business as it will be required to utilize their resources in the protection of the environment.

Legislative Factors

The impacts of governmental policies affect the performance of business. For instance, a law made by the legislative chamber to all businesses asked all businesses to adhere to procedures before raising their retail prices. Similarly, some laws were made to all employers to increase the employee salaries as a motive to increase productivity. Therefore, similar policies would affect the business as they would be required to operate at the standards set by the government in protecting the consumers.

Porter’s Five Forces

Threat of New Businesses

The Perimeter Online Grocery Business does not have to fear a competitive threat from new entrants. Major companies in the online grocery industry dominate the U.S; thus, threatening new entrants through the barriers of economies of scale. The barrier is based on the nature of products with a higher value that the new entrants could not afford. However, the Perimeter Company has analyzed the business industry and is focused on providing quality products and services that would give the veteran competitors something to worry about. Furthermore, the company has understood the supply chain of every venture in the online grocery industry.

Suppliers’ Bargaining Power

The suppliers play an important role in determining the profitability of their customers. For instance, most suppliers would demand a higher price of their supplies as leverage or threat towards the inflation or other upcoming wholesalers. Therefore, the Perimeter Company is focused on maintaining a business relation from specific suppliers who would not demand higher prices by purchasing in bulks or progressive delivery system. The move would reduce the effects of bargaining power.

Customers’ Bargaining Power

The consumers have the power to affect the profitability or the overall performance of business. The power is invested in the quality of products where the standardized and undifferentiated costs of products could affect the relationship between the businesses and the buyers. For instance, when many similar products from different suppliers are available in the market, the consumers would demand a drop in prices by claiming that they could afford similar product from other sellers. Therefore, the motive of the Perimeter Business Venture is to provide high-quality goods and services that would be exceptional to the consumers.

Substitutes’ Threats

The quality of products in the market would as well increase or decrease the productivity of business. The threat is that when the products are at a higher price, the consumers will choose to substitute their taste by acquiring the other affordable products that serve a similar purpose. The Perimeter Business would ascertain investing in almost every product at a slight price difference thus; giving the consumers a chance to afford what they need.

Competitors’ Bargaining Power

The growth of online or grocery business industry has brought the emergence of competition where most businesses in the industry are reviewing their prices affecting the overall industry. The response from the consumers at the reducing prices has been alarming to veteran grocery businesses where they are required to lower their retailing prices thus consistently; affecting their productivity. The good thing about the Perimeter Grocery Company is that Florida has less than five competitive grocery businesses that are large enough to reduce their prices. Therefore, the quality of products would determine the profit maximization as well as the impacts of competition.

SWOT Analysis

Strengths

The Perimeter Company is based on the capital employment where the investors are willing to contribute massively to the new industry thus offering strength towards the competitive industry. Similarly, the business is offering to start by incorporating quality products as well as qualified staff that would compete with the other existing grocery companies in Florida.

Weaknesses

The online industry does not guarantee the success of a company in matters of how the consumers would determine the size of a company and its capabilities. For instance, consumers rely on the financial information of a given company before choosing their products.

Opportunities

The Perimeter Grocery Company is focusing on functioning on a 24/7 platform hence; giving the consumers every minute to shop regardless of the hour. Similarly, the business has taken a wide region that can be broadened depending on their success thus; having minimal competition in the region.

Threats

Competition and the emergence of new similar businesses are the major threats facing the Perimeter Business. Therefore, the business should implement the growth of quality products and services in an effort of minimizing the effects of competition.

Marketing Plan

Size of the market

The market size of the online grocery shopping is expected to rise from 21% up to 34% analyzed from 2015 and 2016. Therefore, the Perimeter Online Grocery Business would account for the rising market size. For instance, the business is expected to increase their productivity by valuing the overall size of the United States grocery category which is valued to around $675 billion (Weber & Badenhorst-Weiss, 2016). Some factors contributing to the increasing market value of an online grocery is that a third of the population are expected to purchase their grocery online most being the young generation and the mobile generation consumers. Similarly, servicing factors have contributed to the increasing market size where the online businesses have created several choices regarding products, goods, services, and attractive prices. Therefore, the current generations are expecting similar services from the online grocery businesses as the audience, and the consumers are expected to increase hence; increasing the value of the overall market share.

Furthermore, the United States’ online grocery market share accounts for 8% and is expected to increase to 26% amounting from $26 billion to $42 billion (Weber & Badenhorst-Weiss, 2016). The rise of a market share of the Perimeter Online Grocery Business situated in Florida is included in the overall U.S market share, and the new business is planning to invest in multiple stores that would accommodate the increasing urban population. Therefore, the increase would be seen by the implementation of strategic plans that would help the development of online grocery business in the globe. The online grocery purchasing in the U.S accounts for 19% of the consumer spending thus; creating room for improvement as a way of increasing the U.S market size of online grocery businesses (Weber & Badenhorst-Weiss, 2016).

Target Consumer Group

The online businesses have been targeting a growth of consumers who would purchase from their online platforms. For instance, the U.S online grocery market share accounts from 21% to 34% thus; realizing the groups that dwell in the online business would be the first step for the Perimeter Online Grocery Store to accommodate the increasing target groups (Weber & Badenhorst-Weiss, 2016). The steps that should be the key examples for the Perimeter Online Grocery Store should be the consumer target groups and the demographic groups. Most people who engage in online shopping for online grocery are of the age bracket of 24- 44 years. The age groups are mostly at work or having a busy schedule hence; could not find time for attending stores. With the increase in internet interaction, they tend to utilize the availability of an online platform by purchasing their basic commodities from their retailers.

Another group on the target list includes the urban dwellers. Most of these individuals are said to be having multiple activities that hinder their availability to shop manually. Therefore, most would find a suitable online grocery that would offer delivery services with high-quality products. Additionally, the urban dwellers are family feeders who would account for the time taken for their family activities and would prefer online shopping for grocery products. Similarly, some urban dwellers are variety seekers with the motive of trying a variety of products from different online stores before choosing one affordable and suitable online store that they could rely on. The other urban dweller’s group is the people living healthy and natural. The group usually finds various products that would not compromise with their lifestyles because of health issues. For instance, sports personalities or celebrities are selective and choosy when it comes to shopping for their eating habits.

The last target consumer group is the highly paid individuals. People earning more than $75000 per year lives in an expensive lifestyle and could not find themselves visiting grocery stores (Weber & Badenhorst-Weiss, 2016). Therefore, they place their orders online for the best online grocery stores and pay for their services. Most of these groups are civil servants or government officials. Therefore, the online grocery businesses tend to analyze the market by identifying their target consumers at their demographics. The Perimeter Online Grocery Store is based on a place with almost every consumer target hence; the business is bound to make significant profits in the subsequent financial years.

Marketing Objectives

Marketing a business or a brand could be the hardest task mostly to a new business entrant. For instance, the Perimeter Online Grocery Store is a new business in the market aiming at establishing their brands as well as product awareness. Therefore, the key objectives set by the management are to ensure a certain growth that would be gradual, measured year by year. The first marketing objective is to increase the sales at every end of financial year. The objective would be achieved by employing explicit strategies that would beat the competitors. The Perimeter Online Store is focusing on increasing their annual sales by 20% by ensuring the number of purchasers in the online platform increases day by day. The key performance indicator of site traffic could measure the objective. Site traffic records the number of online visits made by customers on a daily or weekly basis.

The second objective is to develop the product awareness. The products offered by most online groceries are almost similar, but the Perimeter Store would advance the quality of their products. Therefore, the management has introduced a motive of creating product awareness towards the consumers by advertising their products hence; aiming at gaining 70% awareness at the end of their first year in business. The move would be made possible by viewing the key performance indicator of product page visits. The visits would help the business realize the preferences of the consumers.

Another marketing objective seen in the Perimeter Store is the establishment of the business in the online grocery industry. The management aims at employing distinctive advertisement throughout the United States to access as many customers as possible. Similarly, establishing a new business could be harder than establishing an already existing business since many consumers would not know the agenda of a new business. The objective would be ascertained through a key performance indicator of the average page views on the website. Consumers realizing the new business would spend time reviewing their products probably comparing from similar businesses.

Product Strategy

Product development involves the strategies that help in developing the product lifecycle. Product lifecycle is entitled to the goals, visions, and initiatives involved in the product development. Therefore, the Perimeter Online Grocery Store is focused on creating a product roadmap that would be utilized in the realization of customer satisfaction as well as in the competitive advantage in the brand building. The goals of the product strategy discussed by Perimeter Management includes the incorporation strategies that would be visible in the next financial year thus; indicating the revenue increase, business expansion, and reduction of unnecessary expenses. Similarly, the initiatives present in the Perimeter Stores initiatives are based on the improvements of performance, the betterment of reporting techniques and well as increasing product awareness across states. Furthermore, the business’ vision is to understand the consumers’ preferences and delivering quality products that would create product branding. Therefore, the Perimeter would be based on the strategic product management that would develop new and improved features of their products, improve the quality of products, and improve the technology involved in the online business. The strategies would see the success and profit maximization of the Perimeter Online Grocery Store.

Price Strategy

There are various strategies for setting the prices of a product in a company. Pricing accommodates the relationship between supply and demand. Similarly, pricing would incorporate competition, fixed and variable costs, target groups, as well as the objectives of a company. Therefore, the available pricing strategies involve penetration, premium, economy, psychological pricing, and price skimming. The four elements would help a company like Perimeter Online Grocery Store to determine their best pricing strategy. Penetration pricing is a system used by some companies to enter into the business industry with a low-price procedure. The company’s objectives would be creating awareness towards the consumers as well as attracting as many customers as possible. The company would start by making a loss in the industry, but in the long-run, profits would start accumulating because the company would raise their prices to an optimum level along with the competitors’ prices. Additionally, premium pricing involves setting a high price of a commodity compared to the competitors. The strategy would be useful when the products are of a higher quality. The economy pricing strategy is based on the product awareness including the need to secure a certain portion of the market by installing low prices to their products. Economy pricing is the basic strategy used by most companies in a market mix. Another pricing strategy is psychological pricing that involves offering a price with an odd number such as $99 instead of $100 which attracts more consumers than the latter. Lastly, price skimming is a strategy used by new business entrants in selling their products at a high price before other competitors start offering similar products or services. Therefore, the Perimeter Online Grocery Store would choose using the penetration pricing strategy to access new consumers as well as obtaining a competitive advantage in the market.

Place Strategy

Place strategy is a platform used to define the marketing and product distribution process. A company has two choices to place their products to the consumers either through a direct or indirect distribution. A direct distribution process involves obtaining the products from the manufacturers straight to the consumers, and an indirect distribution involves many personalities before the product reaches the end users. For instance, an indirect distribution would include wholesalers and retailers in the marketing mix. The products are obtained from the manufacturers and distributed to the wholesalers who later distribute the products to the retailers before reaching the consumers. Therefore, the best distribution strategy suitable for the Perimeter Online Grocery Store is the direct distribution because the business aims at providing products and services to their customers.

Positioning Strategy

The positioning strategy is a method used by companies in setting their products and services above the level of their competitors. A company has a role to play in their branding activities as they plan to create awareness to the consumers about their products and services. The strategy utilizes the differentiation, distinctive, and similarities of a product or a service by comparing those of the competitors by ensuring a solid identity of a company in the market mix. Furthermore, positioning a product in a market explains the process of making the product, consumer target, pricing of the product as well as choosing a specific demographic for the products. Therefore, the Perimeter Online Grocery Store is entitled to advertise their products in a unique way that would create consumer and product awareness more than their competitors.

Promotion Strategy

Promotion involves employing specific activities in an effort of increasing sales, product awareness, creation of a brand name, and attracting new customers. However, there are various methods used by companies in a promotion. For instance, some companies use contests, social media, mail order marketing, product giveaways, consumer referral, promotional gifts, and consumer appreciation gifts. All the promotional strategies depend on the type of business as well as the organizational objectives. Therefore, the Perimeter Online Grocery Store is focusing on utilizing the customer referral incentive by encouraging the current customers to welcome other new customers. The rewards for bringing other new customers would be free shopping vouchers, purchasing discounts, and cash rewards.

Sales Strategy

Selling of products and services requires advertisements and other promotional techniques in creating awareness to the consumer target in an effort of retaining the current customers and adding other new customers. The sale strategy requires a company to set a sales team who have an analysis of the competition as well as who understands the market mix in the business. Therefore, the company officials need to prepare a sale plan where their sales representatives would create a platform by informing consumers of their products either directly or indirectly. The Perimeter Online Grocery Store would set a sales representative team that would help in the expansion of their market. The sales team would set to obtain the right buyers, develop a presentation that would welcome new customers, and take advantage of the available resources such as social media in the advertisement. The sales team would chat with the consumers directly discussing the available products and services offered by the company.

Human Resource Plan

Human Resource Requirements

The Human Resource sector in business is the role player for the development and profitability of a company. The management team plays an important role determining the process the business should take by realizing the suitable procedures that would help the company. Therefore, the company’s owners should employ educated and experienced Human Resource team that would help the business achieve their objectives and goals. For instance, the HR department needs to follow some guidelines as requirements in the strategy implementation of policies and rules.

The HR is required to understand and follow the rules and guidelines of HR regulations and laws. Some of the rules of HR regulations are employee protection from harassment or discrimination. An HR department works as a relation between the management and the employees. Therefore, creating a platform that supports, protects, listens, and covers all the employees is the start for a successful business. Furthermore, the HR department requires keeping HR documents organized and confidential. Employees’ records should be kept private and confidential from being accessed by other employees. Files such as medical records, payroll records are supposed to be confidential and protected. Similarly, the HR department is supposed to provide salary on time by preparing the payroll on the agreed dates such as at the end of a month. Creating an employee manual is an essential requirement in times of crisis. For instance, an employee may have legal issues by suing the company but records kept on employee manual could save the business by providing evidence of the employee in question. Therefore, the Perimeter Online Grocery Business is preparing to employ individuals who would be reliable to keep the discussed HR requirements in an effort of protecting the future of the business.

Pro Forma Staff Roster

The HR department requires having a planned schedule of the employees who are entitled to activities on a weekly basis. Many companies prepare shift schedules on weekly or monthly basis depending on the number of their employees. Therefore, a roster would incorporate the work of every employee starting from the highest to the lowest and the resting times. One benefit of a pro forma roster is to simplify the work of the management in directing the activities of all the employees. Employees work best when they are told what to do in advance instead of being told to do something instantly (Weber & Badenhorst-Weiss, 2016). Therefore, the Perimeter Online Grocery Business is focusing on implementing a weekly basis roster because of the changes that might be seen in the employees’ involvement. For instance, there are times when some employees would be on leave or medical leaves, and the HR management are supposed to share the roles and activities of the remaining employees to cover every task of the business. Through such an act there would be minimal delays in customer satisfaction and the business would run as usual. A business can obtain software that helps in creating simplified duty rosters, but as well they can use manual writing to prepare their schedules. Manual rosters are easy to prepare and to share, but the digital rosters prepared by specific software are easy to share with specific employees or every employee. The Perimeter Online Grocery Business’ HR team is supposed to prepare and send the companies of their roster to every employee before the commencement of a new week to make the flow of events easier to comprehend as well as preparing the employees psychologically for the tasks ahead.

Monitoring and Assigning Critical Tasks

Maintaining a flow of operations, a company is required to incorporate a planned schedule and the responsibilities of every employee. Employers have different tasks associated with their area of expertise. For instance, the HR management team suggests the roles and responsibilities of an employee in an area of his or her job description. The tasks start from the highest CEO to the lowest in ranking in a company. A manager is supposed to keep employee records, maintain duty rosters, hire new employees, and ensures customers’ needs are catered. An accountant keeps financial records as well as maintaining a flow of income through analyzing the cashbooks. A company has a security team which works at protecting the business from theft as well as from employees stealing from the company. The Perimeter Online Grocery Company would define the roles of every individual in the company. The manager would be taking care of the operations of every employee. The manager would as well keep records and duty rosters of every employee and implement the customer satisfaction strategy. There would be the division of employees in every sector. The Information Technology personalities would be working in an office to analyze the orders received from online shoppers. The orders would be placed per clients’ place of origin. There would be employees packing the commodities according to the orders placed and other delivery employees transporting the commodities to the customers depending on their geographical area. Therefore, the manager of the Perimeter Online Business would be ensuring that every order is delivered on time and the payment is made through the chosen payment method.

Gap Analysis of Employee Skills

The development of an organization depends on the skills and efforts of the employees in the business. The Perimeter Online Grocery Store is focusing on providing quality products and the best services in the online industry. Therefore, the management would need to evaluate the skills available to the employees as well as analyzing any possible improvements that could help the company overcome their competitors. The HR would start by testing the skills invested by the employees. The strategy would be a good benchmark to begin the road to success. Testing the skills of the employees could be valuable when it comes to identifying the missing skills as well as identifying the needed skills in the company development. For instance, the company would need supervisory techniques that would help the manager monitor the tasks of every employee. Secondly, the organization would invest in training and support of the available employees. The training and motivational speakers would help the employees analyze their potential as well as improving their performance to meet the company’s objectives. For example, an employee might be working for a salary, but the training would change his or her perspective to work with a passion that would benefit both the company and the employee. The success of a company depends on the efforts employed by the workers as well as the supervisory activities in meeting the expectations of the consumers. Lastly, the manager should ensure that the workers have the right environment for working. Peaceful working conditions always have positive results because the employers utilize all their efforts in the development of the company and customer satisfaction. Therefore, the Perimeter Online Grocery management should analyze the skills of every employee as they try to seek the needed skills before implementing the right strategies in consumer satisfaction.

Organizational Chart

The Perimeter Online Grocery Store starts as small retail business aiming at improving as the time progresses. Therefore, the organizational structure would not be complex as that of Wal-Mart or any other large grocery organization. The chart starts from the Chief Executive Officer who is the owner of the business. The CEO delegates the operations of the business to the manager who acts as the controller of the business. The manager has an assistant who takes control of the operations when the manager is not around or doing other activities such as monitoring the supervisors. The assistant manager also controls the Information Technology department in the company. The financial department has the Chief Financial Officer acting on top of sales staff and accounts clerks. The sales representatives and clerks reports to the CFO thus; placed under the accounting and financial department. Additionally, other staffs and non-managerial employees are at the bottom of authority line. The flow of commands runs from the CEO to the manager down to the assistant manager towards the employees and the security department.

Figure 1. The Flow of Information in the Organization

The managers and the CEO of the company communicate the strategic plans and instructions by allowing the information to flow from the seniors to the employees. The Perimeter Online Grocery Business aims at utilizing the downwards flow of information and instructions since the platform provides the rules and regulations set by the seniors towards the employees. The chain of command in the organizational chart describes the information flow where the business-related information is transmitted from the seniors to the subordinates. Therefore, the flow information would help the company in providing feedback to employees’ performance, offering job instructions, describing the role of the employees, defining company’s objectives, group meetings, and offering an open discussion where the employees are offered a chance to air their views in the business. Therefore, the business would aim at creating chances of information flow by incorporating the channel suitable for the business-related information to flow from the seniors to the subordinates.

Financial Plan

Price Sensitivity

Consumer behavior determines the rate at which product pricing would affect the business. For instance, an increase in the price of a product would make the consumers forgo the products for other alternatives or a decrease in price would increase the demand for the same product. Similarly, a price could measure the elasticity of demand for a product. The online grocery products are relatively perishable commodities which most consumers require on a daily basis (Weber & Badenhorst-Weiss, 2016). Therefore, a change in price would barely affect the demand for the products since the consumers tend to use the commodities regardless of their prices. The only difference pricing could make the change in grocery stores because most consumers would change their suppliers who have increased their prices. Competition would be the determinant and not the pricing. The Perimeter Online Grocery Store is focusing on retaining their prices in the market to maintain the flow of customers as well as gaining other consumers.

Business Financing

The methods used in financing a business depend on the level and stage of that business. Startup companies and new entrants always have a hard time getting business loans or financing. Equity and debts are the major methods used in obtaining the required capital in businesses. However, a new business would be hard to get a loan or enter into a debt since the lenders ask to see the progress of a company for at least two working years. Therefore, the Perimeter Online Grocery Company would choose the equity financing technique. The CEO of the company is entitled to provide funds to start the business, and he is aiming at acquiring other equities from his friends and families to top up his investment budget.

The business would start by calculating the startup cost structure before determining the budget of the overall business. The budget could include the costs of sales, legal and administration fees, professional costs, technology and website fees, marketing costs, salaries and remuneration. All the costs mentioned would be the first to analyze and implement although they require being revisited before deciding the rightful criteria in developing the comparables. The startup budget would include the costs of long-term and short-term assets. Therefore, the projected costs of the overall expenses amount to almost $70000 and the startup assets to fund such as office equipment would add up to $80000. The total funds required to set a standing online business would be $150000 of which $100000 is obtained from the owner while his equity from friends and families would be the remaining $50000.

Table 1: Business Financing

Profit and Loss Forecast

Profit and loss of a company are forecasted due to the changes that might occur in business. For instance, a business projecting a profit realization could be frustrated by receiving a loss. Profit and loss forecast would help the company plan for the projected revenues that a company could make at a specific period. Similarly, profit and loss forecast would ensure a company works within their strategies to sustain the business through tough times and the better times. Preparation of profit and loss forecast has various objectives such as estimating future revenue within the company’s activities. Additionally, the profit and loss forecast would be used to estimate the variable costs of a company. It also helps in estimating the gross profit, net profit, and gross margin.

The Perimeter Online Grocery Business is proposing a forecasted profit and loss statement for the next twelve months in the first year as well as the next quarter of the next two years. Therefore, the management should incorporate the projected amounts and figures in realizing the forecasted profit and loss.

Table 2: Perimeter Profit and Loss

Cash Flow Forecast

Cash flow forecasting is the process of involving the used cash in business. Most activities require money but do not appear in the profit and loss statement. For instance, the amount of cash used to check balance in a bank account. The amount charged by the bank could not reflect the transaction in a financial statement, and the business owners and accountant should have a forecasted list of how the money would be used. Taking the example of miscellaneous, some cash usage is not allowed to be placed in the profit and loss statements or any other statement in the business. Therefore, the cash flow forecast would be a tool used to reconcile the profit and loss statement and the bank statement to account for the missing amount of cash. Therefore, the Perimeter Online Grocery Business should utilize the forecasted cash flow statement to account for the incoming and outgoing cash in the business. The statement could help in the survival of the business.

Table 3: Cash Flow Forecast

Balance Sheet Forecast

A balance sheet is used in business to obtain the progress of the company in various areas of assets, equity, and liabilities. However, a projected balance sheet would differ from a current balance sheet because of the values are written in the statement. For instance, a business focuses on preparing a projected balance sheet to estimate the progress that could be attained within a given period. For instance, the company officials prepare a forecasted balance sheet that would guide them through the financial year estimating what amount of assets could be purchased or sold, or what amount of loan could be paid or obtained. Therefore, the Perimeter Online Grocery Business could use a similar strategy by preparing a projected balance sheet. The document could be used to facilitate the long-term objectives as well as implementing the strategic plans of the business.

Table 4: Balance Sheet Forecast

Financial Analysis

Ratio analysis involves the process of incorporating all the financial statements prepared in a company or business. The ratio analysis would be viable to a company in making future decisions. For instance, the management is entitled to include ration analysis in the three major financial statements such as balance sheet, income statements, and cash flow statement. The general experience in the analysis of a balance sheet would incorporate the valuation of assets and liabilities to realize the overall owner’s equity. Therefore, some assets of the company might not be valuable to others. Asset valuation is done only to the assets obtained through a monetary exchange. Similarly, company employees might be valuable to the company, but the balance sheet would not recognize them as assets (Weber & Badenhorst-Weiss, 2016). Furthermore, the ratios available in the balance sheet would include; working capital which is the difference between current assets and the current liabilities. From the Perimeter’s balance sheet, the difference between both would be $100000 minus $65000 which would amount to $35000. Additionally, the current ratio would be $100000/$65000=1.53. The acid test ratio is a number of assets that could be turned into cash with immediate effect in the business and they could be; [cash+investments+receivables]/ current liabilities into the ratio of 1. In the Perimeter’s case, the acid test ratio would be [10000+100000]/65000:1 which would amount to 1.7:1. The ratio analysis could be done to the actual financial statements rather than the projected statements.

Implementation

Risk Management Strategy

The company needs to be aware of the possible risks associated with the development and implementation of successful strategies. Risk management involves the risk assessment by the group of individuals responsible for the development of the company (Weber & Badenhorst-Weiss, 2016). For instance, the management examines the uncertainties of the surrounding events like their business. Taking the example of the Perimeter Online Grocery Company, the risk assessment articulates the overall competition from similar businesses as well as proposing the possible solutions to the challenges facing the business. However, the management could delegate the risk assessment activities to the responsible departments. For example, the sales representatives take the lead in assessing the risks associated with the selling of products as well as the risks facing the consumer in the market.

The Perimeter Online Grocery Business would require setting a team of risk management that would be meeting probably every month in an effort of analyzing the risks that could be facing the organization. For instance, there are challenges that could be available in the pricing sector where the competitors could reduce the prices of their products which could affect the overall business activities. Competition would be stiff as the consumers might shift from purchasing from the Perimeter Company to other competitive companies with similar businesses. Therefore, the risk management personnel are entitled to come up with solutions on the obstacle hence; needing to meet and discuss the issues.

Risk management requires frequent training of the responsible company official in realizing the development of the risk assessment criteria. Training offers an updated learning of the possible criteria for assessing the risks facing the company. Each project should have a risk assessment procedure in the evaluation of the outcomes that could be ascertained by identified solutions to the risks of the company. For example, the Perimeter Online Grocery Business has several departments starting from the procurement, management, employees, and accounting. All the departments have different risks and could need diverse strategies in training the officials on ways to handle their challenges.

The risks facing a company should be managed systematically by identifying, recording, analyzing, and regularly reviewing the possible outcomes of the risks. Therefore, the company should have a list of the risks associated with the development, implementation, of the strategies that could help the company obtain their company’s objectives. The company officials or the department responsible for managing and assessing risks should have an idea of the highest likelihood of risks occurrence as well as having a platform in discussing the risks of a company.

Risks facing a company could damage the company’s reputation or interfere with the daily operations of the company. Therefore, the Perimeter Online Grocery Company are bound to set a management team that would be responsible for the analysis, assessment, and the management of the risks that would occur in the development and progress of the company.

Action Plan to Achieve the Business Plan Objectives

The business requires an action plan that articulates the processes and procedures in the implementation of every company’s objective. The Perimeter Online Grocery Company has various objectives speculated in the business plan, and a need for a successful development would require an action plan set to direct the company officials in the implementation of their goals and objectives. Therefore, the action plan would act as an abstract towards the attainment of the reality objectives.

Action Plan

• Vision – the vision of the company is to provide quality grocery products to an online community by offering the services in an online platform.
• Mission – the mission statement for the Perimeter Company is to maximize customer satisfaction through the provision of quality products as well as improving their sales to profit maximization. Similarly, the company aims at becoming the leading online grocery business in Florida and its environs.

Objectives

• By the first half of the financial year, the company aims at offering 85% of the total grocery products in the region in the online platform.
• The company aims to increase the sales by 40% to the overall population purchasing online and in the stores.
• The company targets an increase in consumer satisfaction by a margin of 90%.
• The Perimeter Company focuses on reducing the expenses in all activities by 10% by the end of the first year in service provision.
• The company targets an increase in their profits by 50%.
• The company officials aim at developing the company and increasing their net worth in the online grocery market share.

Strategies for the development

• The company officials should ensure an increase in the quality product provision by obtaining their products directly from farmers or any other manufacturing companies to have the first-hand products that would offer satisfaction to the consumers.
• The company should focus on the use of internet and technology platforms in advertisements as well as create marketing criteria that would reach a maximum coverage to the intended consumers. The move would welcome new consumers.
• The products offered to the consumers should be of high quality, and the company should offer free or discounted delivery services to their customers as a way of retaining the customers and obtaining new customers.
• Any unnecessary expense should be eliminated in the company in an effort of reducing the annual expenditure by discussing any possible alternative. For instance, the use of a vehicle to deliver products to a nearby consumer instead of push-able carts should be the priority.
• The company should enquire on the useful machines and premises that would increase their productivity and increase their assets.

Action Plan Components and Individuals

• The Perimeter Business is entitled to overcome the challenges of their online business by delegating every process and responsibility to a specific individual. For instance, the manager is entitled to carry out managerial activities in the entire company. He has the responsibilities of supervising the supervisors and ensuring that every client’s requirements are met.
• By the first three months, the company should have achieved a maximum recognition in the entire region. The person responsible for the marketing strategies is the sales and marketing representatives. The group is supposed to penetrate to every corner of the region and ensuring that their brand name is recognized as well as their products and services.
• By the end of the first six months, the company should be able to proclaim a profit in their business. The company officials are entitled to bring the optimal measures and strategies that would help the business to attain maximum recognition as well as obtaining full recognition towards the consumers who would welcome the idea of product purchasing. Therefore, the company should make profits by increasing their sales.

Potential Contingencies in the Action Plan

The contingency plan helps an organization organize for any possible failure of a strategy. Contingency planning involved in the implementation of the business action plan should articulate every idea that might be useful during tough times of business. For instance, when a supplier fails to deliver the ordered products from a manufacturing company, the business should prepare for an alternative in the case similar case happens. Similarly, a customer may fail to pay for the products and services offered as agreed and the company officials should have a plan to deal with similar issues.

Some of the unforeseen cases of contingency in online businesses are the failure of supply delivery, consumers failing to pay for the services and products, employees’ turnover, power supply failure, low rate of consumer’s response to the products and services, and health hazards occurring in the company premises. Therefore, the management should employ an effort of discussing the possible effects of the oncoming threats to the business. For instance, the company officials should educate every employee on the solutions suitable for the contingency planning. Similarly, the officials should educate the employees on their roles and responsibilities to avoid any misinterpretation or employees neglecting their duties. Furthermore, the company management should communicate the contingency plan to every individual in the company as a way to minimize the effects associated with the risks in the business.

Therefore, the business plan suggests the steps implement in the realization of the contingency plan.

• Communication of the contingency plan through the employees and company representatives
• Educating the employees of their role in the company
• Informing the company individuals on their duties and responsibilities
• Training the responsible individuals in risk management
• Assess the disaster that would befall the company by practicing on the possible drills
• Regular review of the contingency plan to remind the employees of their activities and responsibilities
• Printing the contingency plan to the entire company employees for an easy access and as a reminder

Therefore, the company officials should take the responsibility of assessing the possible risks that would affect the development of the business and the provision of products and services in the community.

References

Weber, A., & Badenhorst-Weiss, J. A. (2016). Time-based competition as a competitive strategy for online grocery retailers. Journal of Contemporary Management, 13(1), 433-460.

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