Business Plan of the Pasta Tree Company-Free-Samples for Students

Question: Evaluate the business plan of The Pasta Tree company. Answer: Introduction The aim of the current study is to evaluate the business plan of The Pasta Tree company, which is being implemented in the region of Sydney. The business report will highlight upon the positive and negative aspects of the business plan that are being implemented as a part of marketing strategy. The business plan that are implemented by the company to expand and initiate the business in the Australian supermarket will also be initiated. The business plan will be evaluated based upon the external business scenario, which will have significant effect upon the success rate of the business. The report will conclude by providing profile recommendations that can be implemented by the pasta tree company in order to improve upon their existing business plan. The recommendations will be provided according to the loopholes that are being identified in the existing plan. Setting up of business Objectives and Mission As per mentioned by Kwong et al.. (2012), the primary activity of the marketing plan is to implement the marketing objective. In case of The Pasta Tree company has the objective to expand the range of the supermarket business. The company is also aiming to establish strong chain as a part of their supermarket business. It is also one of the main objective of the company to implement cost effective operational strategies. This is believed to be one of the effective part of Business expansion, as the operational strategy is considered to be the most important part of the business expansion plan. It is also important to consider the factors related to that of the product quality and offering greater values to the customers. The integrated values for the quality and value for the products are considered to be few of the important that needs to be considered by an organization as they plan for expansion of the business and marketing plan (McKeever, 2016). Hence, it can be said that the company highly values their level of customer satisfaction that can help them to improve their level of sales. Expansion in the Product line up and Target Customers The expansion of a business is usually involved with the introduction of new products. This is considered to be one of the essential part of the business plan to fix upon the product line ups. A company can use different types of product line up that can be sold under a single brand name (Maes et al. 2016). The product line up for the Pasta Tree company includes various Italian food products including Spinach linguini, Tomato fettuccine, Tricolor fusilli, New Mexico Chile linguini, Black linguini, Basil spaghetti, Cayenne tagliolini, Black and many more. Sydney is the largest and the most populated city in Sydney, which consists of dynamic ethnic range of people. Nearly 32% of the people within the city are originated from the foreign nation. It is evident from the fact and the statistical analysis that most of the people with the region of Sydney prefers to have continental food. This will thereby help the Pasta Tree Company to have wide ranges of customers with in their target groups (Wallace and Webber 2017). Food quality of the Pasta Tree company is generally maintained at the premium level. Hence, the target groups of customers will mainly include all types of health conscious people within the region of Sydney. However, it is important to consider the fact that the price of the food products that are available in the pasta company is considered to be at the higher category. It is therefore evident that the company has to limit the target group of customers mostly within the richer section of the society. On the other hand, it is important to consider about the fact that Sydney is considered to be the business capital of Australia. This is therefore, resided by many businesses personal and it is possible for them to afford most of the expensive food. The Metropolitan area of Sydney is also resided by people within the stronger Economic Section of the society. This will provide high opportunity to the pasta tree company as they will help in the purpose of expanding the range of customer service. Marketing Strategy and Market Segmentation Market segmentation is believed to be one of the important part of marketing strategy for any company, which is planning to introduce new product. The market segmentation policy helps to divide a wide range of customer, depending upon their choice of behavior and subgroups of their personal choice (Botha and Robertson 2014). In case of the Pasta tree company, the supermarket stores and the small grocery stores are the two types of source of sales. From the buying behavior of the people in Sydney, it is clear that most of the customers prefer to buy food from the supermarket stores. On the other hand, it is clear that in the recent days, most of the volumes of sales within the company is done from the small grocery stores. It is also important to consider about the fact that as most of the target customers of the past the tree company are within the segment of business professionals. Most of the customers prefer to buy products from the supermarket stores. On the other hand, customers residing within the Suburban areas of Sydney, mainly prefer to buy the food product of the pasta tree company, mainly from the smaller grocery stores. In order to improve upon their marketing strategy, the company has also introduced specialty stores, which are needed to improve the volume of each types of products. The marketing segment strategy of the company has aimed to focus the customers, who are mainly busy within their professional life styles. It is also one of the major Important marketing strategy of the Company to have better level of product quality, which can help to preserve the nutritional value of the food for longer period. It is important to mention about the fact that within the business environment of Sydney, the latest form of Technology plays the most important part. Most of the business organization uses Technology as an important part of digital marketing campaign (Guidat et al. 2014). Hence, in the current scenario, most of the important marketing strategies of The Pasta tree, is executed with the help of social media marketing strategy. This is believed to be Highly Effective in the context of the consumer market in Sydney as a significant number of people are active users of the social media. Nearly 85% of the people within working community within Sydney, prefers to use the social media as a part of their daily activities (Gollenia 2016). Hence, with the help of social media it is possible for the company to reach out to wider range of customers. The company can also provide detailed information about the product quality, which is believed to be one of the best way to attract the customers. It is also essential for the company to deal with the issues related to health awareness within the people. This is believed to be the most effective ways to improve upon the level of competitive advantage. The Pasta tree company has also initiated effective quality of packing that is needed to maintain the nutritional value of the food for longer period. The use of the social media is believed to be one of the effective ways that can be implemented to communicate with wider customer groups. It is also possible for the company to understand the demand within the market about the matters related to the food habits. During the initial period of the marketing campaign, the company will offer the products at much lower level of pricing. Most of the products will be sold at the rate of 20% discount. This is believed to be one of the effective strategies to improve upon the level of market penetration. The use of attractive forms of store display can also help to attract the customers in much easier ways. In addition to popular marketing strategies, Hall and Ko (2014), have added that implementation of the corporate social responsibility is one of the effective strategies to improve upon the brand reputation. In this context, the Pasta tree company has initiated for the sponsorship of the Canal Run program. This type of program aims to improve upon the healthcare unit of the childrens cancer research. The extra amount of profit that is earned by the company will be used as part of various forms of the social development activities. Evaluation of Sales Strategy The primary purpose of the sales strategy is to improve the level of brand awareness within the target group of customers. With the help of effective sales strategy, it is possible for the company to focus upon implementing effective communication with target customer group (Gately and Cunningham 2014). It is also important to mention that the sales strategy will depend upon the changes in the external business environment. This is also one of the important ways to implement communication strategies with the customers. Making proper prediction of the sales is also essential, as it helps to make preparations for all type of unfavorable business environment. It is essential for the pasta tree company separate sales strategy for supermarket and grocery stores. The sales strategy need to have a particular milestone, which is decided with the help of budget plan (Lbke et al. 2017). In case of the pasta tree company, the milestone is done with the help of the budget plan with total estimated value of $56,000. Major milestones like product facility extension, production equipment and in store display along with that of the Canal Run project, are all included within the primary part of the budget plan. The main drawback of the sales strategy along with that of the budget plan is the fact that cost of the advertisement and other type of promotional strategies are not included. Hence, it is not possible for the company to accurately measure the profit and sales margin. Figure: Total sales rate Management Summary It is the duty of the management of business to implement effective operational strategies, which can deal with the challenge of production and distribution of product. The current existing business plan of the pasta tree company, is mainly aimed to improve upon the sales strategy. As the company is aiming to launch the business in the city of Sydney, it is essential for the management to conduct important marketing research related to the Fast Food Industry. This can help him to understand the market demand and thereby improve upon their product quality to maximize the volume of sales. The owner of the company is going to use their 15 years of experience, which is needed to improve upon the production and sales rate. During the initial phase of the business, the management has decided to employ few number of employees. The operational manager and sales manager, will play the most important part in within the line of production and sales. During the initial period, total number of 4 employees will be recruited as a part of the production stuff. The management will provide proper training to the newly recruited employees, which will help them to deal with the issues related to poor level of production. Store staff and delivery staff will also be hired, which will help in smooth operational performance of the organization. The total payroll for all the employees within the organization is estimated to be done of $247,406. Hence, the company maintains high level of salary to the employees, which can help them to provide high level of employees satisfaction. Figure: Financial plan for the employees Financial Plan The financial plan of the company will include all types of expenses that is a part of the business strategy. All type of cost including marketing and operational strategies are included within the financial plan. With the introduction of business in the region of Sydney, the profit percentage of the Pasta tree company is expected to increase significantly. The profit percentage will be calculated based upon the total amount of direct sale cost and other type of production expense. The total cost of the sales is estimated by the gross margin of profit. This will include the expense including the payroll of the employee and the cost of maintaining basic infrastructure within the organization. The parameter of projected cash flow will also be used in order to estimate the exact financial plan. This can be calculated by the amount of total cash received in the form of operational cost sale cost and receivable cost. The subtotal cost of all liabilities of the company along with the current asset value is included as a part of the total cash flow. The detailed information about the financial management, is done with the help of balance sheet report. With the help of the statement in balance sheet it is possible for the company to manage and attract all type of investors which is needed to expand the business. Figure: Cash Flow Conclusion It is highly recommended for the management of the pasta tree company,to improve upon their marketing plan, which is done primarily by providing detailed information. An effective business plan should have proper investment plan for all type of future project. It also need to be feasible in the context of existing business environment. For example, in case of the Pasta tree company, it is essential to collect proper information related to that of the marketing research. An effective business plan should include all types ofStrategies that are needed to get proper supply of raw materials. The management needs to form business partnership with multiple number of suppliers available within the market. Consistency also need to be maintained within the business plan that is possible with the help of understanding the external economic environment. The company also need to identify the marketing opportunity, which is required for expanding the range of business. The opportunity need to be identified based on local democracy and culture of the consumers. In case of the pasta tree company, local opportunity can be evaluated with the help of proper market description and understanding the demand of fast food product within the consumers of Sydney. The company also need to properly evaluate the financial plan, which will help in proper resource and budget al. location. As per the existing business plan it has been seen that most of the important business stra tegies are excluded from the business plan. The budget al. location should be based upon the product line as most of the product strategies that are being implemented by the company to attract the total number of sellers. References Botha, M. and Robertson, C.L., 2014. Potential entrepreneurs' assessment of opportunities through the rendering of a business plan. South African Journal of Economic and Management Sciences, 17(3), pp.249-265. Gately, C. and Cunningham, J., 2014. 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