Module 3 Case: Strategy, Financing, HRIS, and Putting It All Together
Kerry-Ann Daley
Trident University
BUS502 – Principles of Business
Dr. James Shiver
March 2023
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Strategy, Financing, HRIS, and Putting It All Together
Sustainable and productive business operations require efficiency in strategic planning
and management, which assures efficacy in resource allocation and employee motivation. As
such, the capacity to objectively develop a comprehensive business plan that factors the market
forces, financial capacity, expected returns, and other critical aspects in a corporate environment
is a critical determinant of a firm’s success (Welter et al., 2021). This analytical paper presents a
business plan for STEP Foods, a middle-size kitchen startup that seeks to capitalize on the trends
in the American food consumption culture to establish its market base and enjoy significant
returns.
STEP Foods is at the starting stage, with the management choosing to specialize in the
production and delivery of a variety of fast foods to the neighborhood. The plan is to grow a big
restaurant from the current setting by gradually extending the kitchen to cover different
hospitality services according to the market response. With the United States (US) population
normalizing the consumption of ready-made foods in street joints due to tight working schedules
and the high cost of basic foodstuffs, the STEP venture is a compelling investment ideology.
Although many individuals are shifting to this space, implying substantive market competition,
technological advancements in the food sector and the availability of manpower presents an
outstanding opportunity (Mingay et al., 2021).
The STEP venture ownership and management have registered the firm as a limited
liability partnership. As such, its two shareholders have recruited the general manager and other
operational leaders to oversee activities and offer daily reports on the activities. With such a
strategy, the firm has a strategic managerial strategy that seeks to ensure effective utilization of
resources and tracking of operations to make adjustments when necessary and reinforce
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productivity will achieve its estimated financial performance. With effective coordination at the
managerial level, decision-making is fast and reliable, implying the firm’s capacity to attain its
financial goals. This paper demarcates the firm’s market space, and analysis of strengths and
weaknesses through SWOT, business management strategies, product description, marketing,
and financial planning.
Business Description
The STEP management has set a strategic plan to acquire the right operational
infrastructure and expertise that will guarantee its significant competitive edge in the market.
With the current dynamics in the hospitality industry, viable investors are capitalizing on the
most effective kitchen technology to guarantee the customers quality products and services
(Sacks et al., 2020). As such, it is possible to grapple for customers with existing ventures, if the
company operates strategically by ensuring that its products and services meet customer
satisfaction. From this standpoint, STEP has a strategic plan to develop quality in its processes
and outcomes and diversify its products to serve a wider market share.
With the cultural diversity in the US population, the kitchen plans to prepare different
cultural meals to meet the taste of different communities in the neighborhood and enjoy the
cross-cultural market space (Mingay et al., 2021). Besides, the firm plans to employ nutrients to
advice on healthy foods, mostly less fatty and sugary meals, which are currently in high demand
because of the increasing rates of lifestyle infections in the community. The firm will invest in
food distribution technology to capitalize on stationary and remote customers and employ digital
marketing tools to reach a wider market. Overall, STEP has a systemic plan of market entry and
survival, presenting a compelling entrepreneurial venture.
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Market Description
With the shifting food culture globally, from cooking to ordering ready meals, and the
multicultural population in the US, the food industry presents compelling entrepreneurial
opportunities. Such a market condition has prompted significant ventures into the hospitality
space, with street food kiosks, coffee shops, pizza joints, and other related businesses increasing
significantly (Sacks et al., 2020). However, the influx into the food industry does not imply
market flooding because there are different opportunities for new entrants.
Fast foods have a huge market, from stationary buyers to remote online customers
ordering ready meals. Besides, the dynamics in food production innovation imply that new
ventures are likely to play at the same level if they venture into the space. With the American
food production and consumption culture, where families consider buying rather than cooking
meals, the STEP firm is likely to scoop enough market and enjoy compelling profitability (Sacks
et al., 2020). As such, the company plans to capitalize on the cultural diversity and market forces
in the US food sector to conduct successful market entry and operate productively. The strategic
plan presents a variety of opportunities, strengths, weaknesses, and threats in the contemporary
market space.
SWOT Analysis
Strengths
The key strengths of the STEP venture include the dynamics in food technology, human
resources, and managerial efficacy. With the availability of a variety of kitchen innovations, the
firm will invest in recent and quality hardware to guarantee quality products and services and
attain customer satisfaction, gaining a significant market share. Besides, the plan to hire
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proficient employees, including chefs and nutritionists is an added advantage because the firm is
assured of quality processes and outcomes (Dalton, 2018).
For the firm to attain its productivity goals, its human resources should be efficient and
reliable, which STEP assures through its strict recruitment guidelines and employee training and
retraining programs. Hiring experienced persons with exposure in the fields of operations will
minimize errors and build the quality of products and services, reflecting a highly productive
venture. Lastly, the involvement of the shareholders and quality managerial body, including the
supervisors presents managerial efficacy as a key strength. Both the shareholders have
experience in running hospitality companies and the general manager has significant exposure to
the industry, implying a team that can make the right decisions to propel the firm in the right
direction. Overall, STEP has outstanding strengths amid the unavoidable weaknesses in the
corporate sector.
Weaknesses
The company faces two critical weaknesses; financial constraints and absence in the
digital space. With the need to purchase all critical food technologies and hire quality personnel,
the company might face monetary hardships if it will not secure reliable loans from funding
companies or in a scenario where its sales do not peak as expected. Besides, its absence in the e-
commerce world and social media platforms is a key challenge that might dwindle its marketing
strategies. Therefore, it needs to effectively handle its opportunities to avoid falls in these critical
corporate aspects.
Opportunities
STEP enjoys opportunities in product diversification, market fragmentation, and targeted
marketing. The company has an elaborate plan for producing cross-cultural and healthy meals
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that fit different market units, enjoying the multicultural market in the US. Besides, its marketing
approaches, including reaching individuals through cards in the neighborhood are compelling
because it targets potential buyers. Overall, these opportunities present the firm’s strength and
capacity to dominate and rule the market despite the unavoidable threats.
Threats
The key threats to the STEP venture are stiff competition and market uncertainty.
Although there are entrepreneurial gaps in entering the food sector in the US, the high number of
similar ventures threatens new entrants, especially in the capacity to gain and maintain return
customers. Also, the open market structure induces significant volatility, especially with the
strive to make substantive sales amid the substantive competition in a new operational space. As
such STEP will have to overdo these challenges to operate sustainably.
Management Team and Personnel
STEP adopts a shared leadership approach to management, with shareholders offering the
overall manager and the supervisors the capacity to make critical decisions that can propel the
business forward. As such, the manager and supervisors’ recruitment process has strict
requirements, including the need to meet human and technical skills. The communication
structure is formal, and adopts both vertical and horizontal designs to facilitate adequate
interactions, ensuring that information spreads fast and efficiently. As a Limited liability
partnership, shareholders share returns equally and are protected from the firm’s operational
risks. As such, the management team and personnel are effectively set to deliver the firm’s
purpose.
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Product Description and Marketing
STEP specializes in a variety of fast foods, including fries, pizza, soft drinks, chicken,
beef roast, and others. Its products will be easily identifiable through the packing bags, which
have the firm’s logo and short description, which the sellers will offer to the customers as an
advertisement approach. While drafting the marketing strategies, whether traditional or digital
methods, the approach must target the right individuals and deliver the appropriate information
to publicize the brand and sensitize the population about the business’s existence.
With a producer-consumer supply chain, it will be easy to market the company and collect
feedback from the buyers. Initially, the firm will have weekly discounts, where it will offer its
products cheaply to its return clients and reinforce customer retention. While striving to
effectively implement its 4P’s marketing mix, the sales department will be involved in regularly
updating the packaging branding according to seasons to make it highly informative and
influential (Gatautis, 2020). The food distribution tracks will also have attractive and eye-
catching decorations illustrating the purpose and focus of the firm. Furthermore, social media
will offer reliable marketing platforms and effectively create brand awareness. Therefore, there is
an elaborate plan to ensure that the targeted market understands the existence of the firm and
understands its specialization, assuring it a competitive advantage.
Financial Plan
The STEP has set an annual financial budget of $500,000 to jumpstart its operations and
facilitate operations for the next year. About a third of these funds will help in establishing the
venture by purchasing the important infrastructure and setting it in the set operational space. Al
the total expenditures in initiating the business is likely to amount to $400,000 and the remaining
amount will remain to counter operational uncertainties. With an expected monthly return of
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$100,000, the venture will be able to sustain itself and guarantee the investors tangible returns.
Therefore, the firm has a compelling financial plan to handle its operations in the year if its
operations are optimal.
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References
Dalton, J. (2018). SWOT analysis (Strengths, weaknesses, opportunities, threats). Great Big
Agile, 249-252. https://doi.org/10.1007/978-1-4842-4206-3_62
Gatautis, R. (2020). Understanding digital and social media marketing concepts. Digital and
Social Media Marketing, 21-38. https://doi.org/10.4324/9780429280689-3
Mingay, E., Hart, M., Yoong, S., & Hure, A. (2021). Why we eat the way we do: A call to
consider food culture in public health initiatives. International Journal of Environmental
Research and Public Health, 18(22), 11967. https://doi.org/10.3390/ijerph182211967
Sacks, G., Riesenberg, D., Mialon, M., Dean, S., & Cameron, A. J. (2020). The characteristics
and extent of food industry involvement in peer-reviewed research articles from 10
leading nutrition-related journals in 2018. PLOS ONE, 15(12),
e0243144. https://doi.org/10.1371/journal.pone.0243144
Welter, C., Scrimpshire, A., Tolonen, D., & Obrimah, E. (2021). The road to entrepreneurial
success: Business plans, lean startup, or both? New England Journal of
Entrepreneurship, 24(1), 21-42. https://doi.org/10.1108/neje-08-2020-0031
