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Evaluation of a Supermarket of Organic Products Report (Assessment)

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Updated: Jun 22nd, 2019


Evaluation of a prospective business venture is a process that requires planned operation to determine areas that need modification. Many young entrepreneurs fail to achieve predetermined business goals due improper execution of ideas, poor planning, and insufficient identification of market.

The most important requirement in any business endeavour is market availability. The prospective venture has to yield substantial amount of revenue that sustains it until it gains stability. Another factor that should be considered during the evaluation is competition.

In the context of this assessment, the business idea is unique; hence, there is minimal competition. This assessment paper elaborates on the evaluation of a supermarket that deals with organic products such as fresh flowers, fruits, and vegetables in a city that has no similar business ventures. The evaluation will focus on the entrepreneurial aspect of the venture rather than the business itself.

The Organic Products Supermarket

In the contemporary world, many people value organic products such as foods, flowers, and herbs among others. These products contain both unprocessed and unrefined substances that are beneficial in a variety of ways. The supermarket will be located within the central business district (CBD) of a given city.

Various reasons underpin the suitability of this business location. At the outset, transport cost is factor that favours the appropriateness of the supermarket since it is strategically located within the CBD. The primary objective of the business enterprise is to sell organic products such as foods, flowers, and herbs among others.

Its success will majorly depend on sales of unique, quality, and fresh organic products that will be availed to customers on a timely basis. The business will start in March 2016 as a small and medium enterprise (SME). A sole proprietor who will also serve as the manager will own the supermarket since the business will be a springboard of an individual’s ideas.

Owing to the uniqueness of the business and its location, it will serve as a source of hands-on experience (Barringer & Ireland 2012). Another advantage is an impact result that will be gained from an input of individual skills in the business. Excellence flexibility of the individual will be enhanced through various business operations.

There will be contact with members of the organisation in matters that pertain to responsibility, creativeness, and initiatives that enable advancement of careers (Barringer & Ireland 2012, p. 427). Section 2.1: The Business Value and its Deliverance to Customers (Business Model and Value Proposition Canvases)

The purchasing power of a customer is always vested upon the value of a product and/or service (Osterwalder & Pigneur 2010, p. 42). Value controls the emotional and psychological wellbeing of the customer. This situation compels them to buy products that that they deem satisfactory.

Contemporary business landscape does not only require provision of products at better prices but also embracement of elements such as innovation, sales benefits, and empathetic marketing among others. Inculcation of such exchanges has driven businesses to become customer-centred venture rather than owner-oriented (Osterwalder & Pigneur 2010, p. 45).

The organic products supermarket will embrace innovation, quality, and additional value-added experience to customers. It will also focus on outcome through provision of quality products to the customers. The quality will be emphasized through examination of services and products such as fresh vegetables, fruits, and other organic foods that will be offered.

These products will be chosen based on quality of evaluation and affordability. Establishment of the psychological needs of customers will be accomplished through market research. This strategy will enable determination of good products that satisfy them emotionally (Osterwalder & Pigneur 2010, p. 46).

Delivery Ways of the Quality Products

Delivery of the products will involve the following processes.

Identification of Key Partners

The key partners will comprise the manager who will be the owner since the business will be under sole proprietorship and staff who will run the operations. Other key stakeholders will be suppliers that are based in both rural and urban areas. Their key activities will be ensuring constant supply of organic produce from their farms.

Key Activities to be undertaken

The various activities that will be undertaken to ensure quality include proper reception of products, preparations and cleaning, preservation techniques, packaging and storing, and observation of hazard control processes and methods among others.

Distribution channels that will be deployed in the business include use of direct-marketing channels; hence, consumers will be able to purchase products without involvement of intermediaries (Osterwalder & Pigneur 2010, p. 51).

Key Resources that will be required

The key resources will include tracks for transportation, communication structures, computers, refrigerators, electricity, packaging materials, skilled labour, and capital among others.

Value to be delivered

Quality of products is crucial for the success of the new venture. Therefore, high quality products will be delivered to compliment low quality processed foodstuffs that are delivered to customers by other companies in the city. The products will be packaged in various proportions to meet requirements of different customer segments.

In addition, the products will bear varying brands, nutritional value, price tags, and convenience of use by the customers among others (Osterwalder & Pigneur 2010, p. 52).

Customer relations

Relationship between the business and customers will be enhanced through provision of assistance, self-service, and after-service delivery among others. These strategies will enable the business to maintain repeat customers.

Customer segments

The established quality will target whole customers (mass market) who value superiority of goods, high-end delivery, and reputable services among other things (Osterwalder & Pigneur 2010, p. 53).

Price Structure

The price of various products will be established based on factors such as quality, variable costs, fixed costs, and the overall economy of scale (Osterwalder & Pigneur 2010, p. 54).

Revenue streams

The business will use the most convenient ways to accumulate revenue. For instance, willingness of customers to pay for the value of quality rather than portability that many businesses use in the processed mechanisms will be highly observed in the supermarket.

The manager will use various ways to ensure understanding of consumer value concepts amongst staff. At the outset, the manager will identify values that are most important to the customer through development the business’s market. Secondly, understanding customer value concept will require creation of dimensions that align with the desirable values of customers.

This strategy will involve identification of opportunities for creating new values. For customers whose needs change with time, observation of consumer behaviour will enable the management to understand the dynamism of their requirements (Aulet 2013, p. 163).

Customer Relationship

Customer relationship is an aspect that requires maintenance of good rapport to build a dependable business network. The network will comprise business colleagues, customers, friends, and/or professional acquaintances among others. Since the venture is a long-term investment, addition of value to relations to contact customers will be a good approach to maintenance of such relations (Hatten 2011, p. 111).

Another way of maintaining customer relation will be constant communication. Making follow ups will be considered after various meetings with esteemed customers. E-mail marketing will also be practiced to keep the customers informed about new products and price offers that will be revised periodically (Osterwalder & Pigneur 2010, p. 61).

Relationship with Suppliers

A strategic approach to suppliers is paramount to success of any business. Suppliers are crucial stakeholders who influence the enterprise through various ways. At the outset, suppliers affect the quality of products that are sold to customers. Secondly, delivery of items enhances dependability of the business.

Timely delivery boosts market competitiveness. Reasonable pricing, product and service quality, reliability, knowledge of business trends, and suitable technology among others are key factors that enhance business-supplier relationships. In addition, suppliers are also innovators who contribute largely to the development of new products (Hatten 2011, p. 113).

Challenges and Risks Facing the Business

Raising Capital and other Financial Risks

Inappropriateness and inadequacy of proper financial planning and budgetary projections has led to closure of new business ventures. Therefore, it is important to ensure that the value of products is strong to support various financial issues of the business. Insufficient capital is considered a big threat to such ventures (Beaver 2002).

A viable investment requires sufficient capital to cater for expenses until the business becomes stable. Issues that pertain to inventory, equipment, office materials and marketing tools among others are crucial for running such ventures effectively.

Securing funds from well-wishers and personal savings will ensure that the supermarket starts successfully. Other sources of capital will include bank loans and soliciting of money from private sectors among others. However, convincing such entities can be a challenge due to availability of limited personal savings (Beaver 2002, p. 203).

Managing Cash

Managing cash flow will be a significant problem due to availability of inadequate capital that will limit the manager to spend within a restrained budget. As a result, the manager will be too selective on spending patterns. This situation implies that the business will require creativity to manage such funds successfully (Ries 2011, p. 253).

Physical Damage

There is a possibility that the business can be damaged by natural causes such as floods, fire, and hurricanes among other catastrophes. Such occurrences can lead to incurrence of unbearable losses (Beaver 2002, p. 205).

Procedure on how the risks will be managed

Step 1: The plan of the business operation will be written down to enable efficient evaluation and planning for the operating risks in areas such as functionality, marketing, and finance.

Step 2: Determination of insurance cover against losses that might arise due to occurrence natural calamities in the business locality. Other insurance covers against probable losses due to fault installations and internal accidents among others will also be determined.

Step 3: Establishment of unique risk management plans that are separate from the business canvas and plan will also be taken into account. The plan will give clarity of the steps, procedures, and means of dealing with such risks.

Step 4: Training employees who will help in running the enterprise will also be in cooperated to avoid associated to untrained staff like pilferage.

Step 5: There will be periodic update of the plans to provide current ways of solving problems that might arise during the business operation.

Other ways of managing risks will include analysis of market performance to determine the viability of products and services. The business’s plan will be significant in determination of market location to provide a dependable framework for studying customer needs.

Issues concerning failure to start the venture will be curbed through studying the spending trends of consumers and the variety of product and service quality offered that are offered in the city (Hatten 2011, p. 116).

Location of the Organic Products Supermarket

Identification of a suitable business location is a significant phase of any business. In this context, the organic products supermarket will be located within the central business district of the city. This strategic position will ensure that majority of the customers within the town are captured.

The place will also be convenient since most of the customers will incur minimal transportation costs to reach the supermarket. The location will also ease access to services that are offered by the city’s local authorities such as the municipal council (Blank& Dorf 2012, p. 206). The city also provides a noble environment where no competition will be realized since no other businesses offer organic products to the residents of the town.

Building Networks for Success of the Business

A successful business is comprises a network professionals, customers, and businesses among others. Efficient investment in time and energy is paramount to development of strong business network of contacts (Rae 2007, p. 32).The supermarket will have a network that is based on mutual benefits.

The first network will target individuals for business and career matters through direct and indirect contacts. Esteemed customers will be informed via e-mails, phone calls, and newsletters mentions among others about new products and services. These people will also serve as sales representatives because there is likelihood of passing any new information to their friends and colleagues (Beaver 2002, p. 208).

Entrepreneurial skills that I need to start the business venture

An entrepreneur requires various skills to build relationships with workforce teams, customers, and suppliers among other people. These skills are necessary for accomplishment of business goals since they facilitate execution of ideas. They include leadership and motivation, communication, ability to listen, observance of work ethics, and negotiation skills among others.

Leadership and Motivation

Entrepreneurs should be able to lead and motivate others, especially the employees. They should delegate duties to others and work with them to create motivation towards accomplishment of business goals (Burns 2014, p. 181).

Communication Skills

Communication is paramount to establishment of apt business networks through investors, consumers, and personnel among other stakeholders. Communication also enables establishment of market networks, rapport, and creation of bonds with customers and other businesses (Rae 2007, p. 35).

Good Listener

Good entrepreneurs should pay attention to their employees, customers, and colleagues among other stakeholders who serve as sources of information that pertain to weaknesses or strengths of the business. The capacity to listen either builds or breaks a good profile. They should also focus on both active and empathetic listening (Rae 2007, p. 36).


Personality is also a key element in working with others. An entrepreneur should focus on emotional intelligence. Many people, especially customers and suppliers, pay attention to personal attitudes that affect the way they relate with their immediate environments (Rae 2007, p. 34).

Negotiation Ability

Good negotiators strive to ensure reasonable prices that are affordable by their customers. They also solve business differences in a manner that brings unity and mutual benefits (Adams & Spinelli 2012, p. 480).


An entrepreneur should have respect and integrity. He should also practice truth and fairness during execution of leadership roles to build a committed and motivated team (Adams & Spinelli 2012, p. 481). Various networking skills that the entrepreneur will require include communication skills, good personal profile, and ability to share credible ideas.

Development of the skills

Skills especially networking skills can be developed through private studies, attending conferences as well as seminars, collaborate with colleagues in work and meet new friends as well as the likeminded individuals who are interested in sharing ideas among others. Other skills that require development are leadership, listening and team building among others. These should be prioritised on for success in business (Burns 2014, p. 188).


After a critical analysis of the idea, the business opportunity seems viable due to a variety of factors that make it unique. The evaluation reveals that organic foods, herbs, and flowers have a feasible market in the town. Therefore, there is a promising future for the supermarket.

According to the evaluation (using value proportion and business model canvases), the business primarily places its worth on the quality of products that will be delivered to customers. These models are focused on customer satisfaction. Skills of the entrepreneur such as leadership, teamwork, communication, and networking among others have also been regarded as vital in implementation of successful operations of the venture.


Adams, R & Spinelli, S 2012, New Venture Creation: Entrepreneurship for 21stCentury, McGraw-Hill, New York, NY.

Aulet, B 2013, Disciplined Entrepreneurship: 24 steps to a successful startup, New John Wiley & Sons, Jersey.

Barringer, B & Ireland, D 2012, Entrepreneurship: Successfully launching new ventures, Prentice Hall, Upper saddle River, NJ.

Beaver, G 2002, Small Business, Entrepreneurship and Enterprise Development, Prentice Hall, Harlow, FT.

Blank, S & Dorf, B 2012,The Startup Owner’s Manual, K&S Ranch Inc., Pescadero, Calif.

Burns, P 2014, New Venture Creation: A Framework for Entrepreneurial Start-Ups, Palgrave Macmillan, Basingstoke.

Hatten, T 2011, Small Business Management: Entrepreneurship and Beyond, Houghton Mifflin, Boston.

Osterwalder, A & Pigneur, Y 2010, Business Model Generation, Hoboken, NJ, Wiley.

Rae, D 2007, Entrepreneurship: From opportunity to action, Palgrave Macmillan, Basingstoke.

Ries, E 2011, The Lean Startup, Crown Business, New York, NY.

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