FDY3005 Becoming an Effective Leader Coursework Case Study

INTRODUCTION

The business plan is defined as the document which provides all the details relating to the new proposed idea. For developing a new business all the details must be listed effectively so that the overall working can be improved. The current study will outline the different types of decisions relating to the new idea of opening an organic supermarket. Within the year 2021, the total spending on organic food was approximately 2.8 billion and it totals to around 4 % of increase in comparison to the previous year. The study will include a description of the business idea along with the value proposition and structure of the business. In the end, it would outline the leadership and marketing plan of the business.

MAIN BODY

Description of the business idea

The present business idea is based on the opening of an organic supermarket wherein all the organic and herbal products will be made available to the consumers. It will include organic food products, beauty products, clothing furnishing and many other products which are organic and beneficial for the consumers. In the current modern working environment, consumers have become more conscious relating to their health and physical fitness. Thus, as a result of this, the present idea of starting the organic store is very helpful and will become successful. The reason underlying the fact is that when the business idea is by the latest trend then it will become successful. For analysing the feasibility of the proposed idea, the use of cost-benefit analysis is undertaken (Bazaluk and et.al, 2020). The reason for selecting this method is that it will assist in evaluating the fact that whether the business will be feasible or not. The cost-benefit analysis is a tool which discusses the cost attached to the idea and the benefits of the new idea. In case the cost is more than the idea is not feasible. On a contradictory note, when the benefits are more than automatically the business idea will be successful. The estimated cost attached to the starting of this business is £26000. On the other hand, the estimated profit of the business for the first year is £14500. Thus, the company will be earning a good amount of profit and as a result of this, the business idea is feasible and will be beneficial in case it is started.

Value proposition

The value proposition of the current business is that it provides every type of organic product under one roof only. Thus, the consumer does not have to go to any other place as all the different types of organic products will be made available to the consumer in a single place only. Moreover, premium quality products and services will be provided to the consumers 24/7 is another value added to the business idea which will assist in improving the feasibility of the business. The premium quality includes the fact that the product and services will be of very good quality and it will be made available to the consumers at any time of the day. Whenever the consumers requires the product they can order online and it will be made available to the consumer as and when they require.

Business structure

For the successful starting of the business, the appropriate business structure must be followed. The business structure is defined as the legal structure which is followed by the person for operating in the external market. In the present case of opening the organic supermarket, compliance with the sole trader is followed. The reason underlying the fact is that the sole trader is a type of business which is managed and run by the owner only and there is no involvement of other people without the permission of the owner (Olazabal and Avila, 2022). Thus, as a result of this, the business will be managed effectively because all the decisions are taken by the owner only and this will save time in decision-making. Moreover, choosing the sole trader is the best structure for opening an organic supermarket because there is full control in the hands of the owner only and it is very easy to be established. Furthermore, another reason for the selection of sole trader as the business structure is that it has the benefit of tax benefit as well. This tax benefit will assist the company in saving a lot of money as they do not have to pay taxes. On the other hand, the major drawback which the business might face is that the owner has the unlimited liability as they are solely responsible for all the debt and their payback.

Leadership skills

Leadership audit result

With the evaluation of the results, it is clear that the score is good and I am on my way to becoming a good leader. Thus, with the result, it is evident that I have effectively complied with the guide to become a good leader and this will assist in managing the business well. With this result, it was evaluated that I have good self-confidence, emotional intelligence, positive attitude and outlook and many other skills which are required for the effective management of the new business.

Leadership

For the effective monitoring of the new business idea, appropriate leadership must be followed. This is necessary for the reason that when effective leadership is followed then automatically it will enhance the working capability of the business. The leadership style which will be used in managing the current business of organic supermarkets is the implementation of the democratic style of leadership. The reason for the selection of democratic leadership is that it includes the subordinates as well while making the decisions. The suggestions are taken from the subordinates and every other employee present. Thus, this increases the motivation level of the employees as they are included in the decision-making (Caillier, 2020). However, the decision-making power is centralised and will remain in the hands of the owner only. But the suggestions are taken from every employee of the business. Resultantly this inclusion will increase the motivation level of the employees and as a result of this, they will be highly motivated to work. In addition to this, when democratic leadership will be followed then in case of problem solving it will be much easier. During any kind of problem, suggestions and ideas for solving the problem will be taken from other employees as well. To solve the problem, effective brainstorming will be done and it will result in an effective attainment of the solution for the problem.

In addition to this, some compliance with transformational leadership is also assistive in managing the working effectively. This is another style of leadership which is assistive in managing the new business effectively. This leadership style focuses on implementing the changes within the business and its operations effectively. There are many different types of changes which are taking place in the external environment and businesses must implement the same. Thus, with the help of transformational leadership, it is up to the business to implement any kind of change within its operation process easily and effectively. With the help of this leadership style, the leaders of Organic Supermarket try to motivate and stimulate the employees to learn new things and try to implement them in work. Thus, it will enhance the overall working efficiency of the business and the employees as well. For example, the installation of new technology needs to be implemented and in this case, the employees might resist the acceptance to the change. Thus, in such a case, the use of transformational leadership will be assistive and the employees will be motivated to accept the changes. Hence, with this it can be stated that the effective use of leadership is assistive to the company in making and implementing the changes in appropriate manner.

Motivation

For running the business successfully the employees must be kept motivated and engaged. Thus, for this appropriate motivational strategies must be used by the company so that employees are motivated. The best motivational strategy for keeping employees motivated is Maslow's need hierarchy theory. This is a theory which emphasises the satisfaction of the different needs of the person. It states that when the needs of the person are satisfied then they work in must better manner (Numonjonovich, 2022). Thus, the theory provides a hierarchy which includes satisfying physiological, safety, belongingness, self-esteem and self-actualisation needs. As and when the person starts the hierarchy the needs as satisfied of the person. Thus, when all needs of the employees are satisfied then automatically they will be working in a better manner. Thus, as a result of this, the overall working of the business will be improved. For instance, when the basic needs of the employees will be satisfied then automatically it will increase their working capability. Thus, it is necessary for the retail companies that they must effectively comply with this theory so that the employees are kept engaged and highly motivated to work.

Marketing plan

Marketing is defined as the strategies which are used by the company for promoting the business product and services within a highly competitive market. Thus, for the organic supermarket, the appropriate marketing decisions must be taken so that overall work can be improved. For effective marketing, the customers must be defined well. Thus for this, the STP analysis is undertaken.

STP

Competitors

For the success of the new business, they must evaluate the existing competitors effectively. In case the competitor analysis is not implemented effectively then it will be affecting the success. Already within the UK market, the competition in the organic food industry is very intense. There are different kinds of companies operating within the industry to a great extent. The existing competitors for the new organic Supermarket will be Planet Organic, Tesco, Morrison, Sainsbury, Walmart, ALDI, Lidl and many other different organic stores.

4 Ps of marketing

CONCLUSION

In the end, it is concluded that effective evaluation of the business plan is necessary. This is particularly essential because when a clear business plan is created then it provides effective implementation of the business. The above study highlighted that business for opening the organic mart will be beneficial. The reason outlined was that is follows transformational leadership which is beneficial in managing the project. It also evaluated that Maslow's need hierarchy was effective in keeping the employees happy and satisfied. Moreover, it also outlined that for promotion the online and offline methods are useful. In the end, it is concluded that complying with all the above aspects will assist in making the business of organic mart successful.

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References

Books and Journals

Bazaluk, O., Yatsenko, O., Zakharchuk, O., Ovcharenko, A., Khrystenko, O. and Nitsenko, V., 2020. Dynamic development of the global organic food market and opportunities for Ukraine. Sustainability, 12(17), p.6963.

Caillier, J.G., 2020. Testing the influence of autocratic leadership, democratic leadership, and public service motivation on citizen ratings of an agency head’s performance. Public Performance & Management Review, 43(4), pp.918-941.

Darmawan, D. and Grenier, E., 2021. Competitive Advantage and Service Marketing Mix. Journal of Social Science Studies (JOS3), 1(2), pp.75-80.

Nosratabadi, S., Mosavi, A. and Lakner, Z., 2020. Food supply chain and business model innovation. Foods, 9(2), p.132.

Numonjonovich, M.M., 2022. ECONOMIC DEVELOPMENT AND THE ROLE OF MASLOW’S HIERARCHY OF NEEDS. Web of Scientist: International Scientific Research Journal, 3(7), pp.5-10.

Olazabal, V.H.N. and Avila, N.M.G., 2022. Dynamic capabilities in sole proprietorships: theoretical model through grounded theory. Journal of International Entrepreneurship, 20(4), pp.591-618.

Wichmann, J.R., Uppal, A., Sharma, A. and Dekimpe, M.G., 2022. A global perspective on the marketing mix across time and space. International Journal of Research in Marketing, 39(2), pp.502-521.