Global Business Management: Jack's Peanut Butter (Research Paper Sample)

GLOBAL BUSINESS MANAGEMENT
JACKY PEANUT BUTTER
STUDENT NAME:
STUDENT ID:
DATE:
Executive Summary
Nutritious foods are a pathway to a healthy lifestyle. Thus, if one needs to lead to a healthy lifestyle, choosing Jacks' peanuts would be a solution. Jack peanuts butter will be sold to a target market of children and youths aged below the age of 22 years. The primary surveys reported that most people (70%) were willing to have a healthy diet. They also were concerned about the flavours, with about 74% of them going for flavours and not only peanuts butter.
The analysis found that the competitors were not able to produce different flavours, which would offer Jacky a competitive advantage. However, it was realized it would be faced with stiff competition. The PEST model indicated that political, economic, technological, and social factors would be the most influential factors in the establishment of Jacky peanuts butter. All the same, the business was seen to be viable and would have a break-even period of 4 years, which was seen to be relatively fair and an initial investment cost of 30,000.
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc39015719 \h 31. Business Opportunity PAGEREF _Toc39015720 \h 51.1: Market Gap PAGEREF _Toc39015721 \h 51.2: Value Proposition PAGEREF _Toc39015722 \h 62. Micro Market PAGEREF _Toc39015723 \h 83. Macro Market PAGEREF _Toc39015724 \h 114. Macro Industry PAGEREF _Toc39015725 \h 125. Micro Industry PAGEREF _Toc39015726 \h 136. Financial Analysis PAGEREF _Toc39015727 \h 14Reflections and Recommendations PAGEREF _Toc39015728 \h 15Appendices PAGEREF _Toc39015729 \h 16Appendix 1: PEST analysis for Jack peanut butter PAGEREF _Toc39015730 \h 16References PAGEREF _Toc39015731 \h 17
1. Business Opportunity
1.1: Market Gap
Food security has been a significant concern in the UK. This has led to production directed initiatives to become a secure country. However, recent developments have shown that it's not only about being food safe but also being nutritionally safe (Johnson & Whittington, 2009). It brings on board important food components as well a less produced crops. Healthy lifestyle trends have been on the rise in the recent past. Concerns of having a nutritious diet have led most people to raise matters of nutritious plant products. Research has shown that there is about 59% of people in the UK who are obese, 41% are facing different forms of malnutrition, and more than 50% are undernourished (Smartt, 2012). Due to reduced times for personal development, most people have opted for fast foods that really have plant proteins in their dishes as they are hard to prepare. A study by Philip (2002) reported that healthy foods are sold at a few outlets, which could be associated with the poor eating habit. The government, through the ministry of health, together with researchers, has widely called for the introduction of healthy diets as well as training programs through outdoor campaigns to people. This is with the primary objective of letting people know what they should eat, and what healthy diets are about. The global consumption of nuts has been at 3g against the recommended of 25g (Emmett et al., 1999). This is an indication that most people have been under consuming this category of foods regardless of the high documented calorie levels.
Source: (Lancet, 2017)
The statistics, with the current trends of a healthy lifestyle, have put a lot of pressure on consumers. All processing firms have been asked to fortify their meals. The ministry of health has stressed on inclusion of health supplements in the daily meals. For consumers that significant pain has been on loss of free choice. Currently, there has been a lot of waste along the food value chains. It has been estimated that about 30% of the food goes to waste, while about 40% is recycled (Smartt, 2012). Consumers have also not been provided with varieties for the different food products to increase their choices.
As a result, due to the government directives, high cases of malnutrition, especially obesity and undernourishment, high food wastes, low consumer choices, and high-calorie levels, it is evident that there is a market gap in the food industry. It is because what is needed by consumers to ensure nutritional security does not match what is offered in large quantities in the market. This provides an excellent opportunity for firms intending to offer nutritious components to the daily food, which will help solve customers' grief.
1.2: Value Proposition
The issues that have been mentioned to have significant problems, as well as being threats to human health, has inspired Jacky peanut to develop the business idea of bringing in a nutritious food component. It will be spread on bread, or can be added on cooked food for nutritional security (Emmett et al., 2009). The spread will be provided in different flavours unlike the only peanut butter spread that has currently been offered widely in the market. The business will be located in London, UK, and will make use of the business customer model with a brand name, "Jacky peanut butter." For the safety of the grounded peanuts, the business will be run in conjunction with peanut growers as well as nutritionists. The target market would be children and youths below the age of 22 who have widely been consuming less nutritious products. Thus, the business will be driven towards offering nutritious products to the target market to ensure a healthy lifestyle. Therefore, Jacky peanut butter value proposition highlights are provided below.
* 100% nutritious food paste
According to Emmett et al. (2009), 89% of youths eat junk foods, while 26% of children are malnourished. 73% of parents in a survey by Ruault (2006) wanted a healthy diet for their children.

* Business to customer model
About 80% of peanuts firms in the UK make use of business to the business model, which has compromised customer relations as well as identification of customers' needs on tastes.

* 0% non-recyclable waste
Jacky will make the paste from roasted peanuts, ensuring no waste. In the UK, significant concern has been on carbon emission. For environmental conservation, Jacky peanuts will use gas and electricity in roasting to lower environmental pollution and assure sustainable life

* "Jacky peanut butter" diet plan
It's believed that reducing calories is crucial to dealing with obesity, which has been estimated at 41% (Smartt, 2012). Parents have been seen to seek a healthy life for their kids. Choices of tastes have been limited to the product, which has reduced intake. This will be critical as Jacky peanuts will endure low caries in the product and will offer the paste ready for use with different tastes, which will be a crucial success.

* Marketing
Jacky peanuts aim to have an online ordering platform that will help reduce waiting time. The platform will also offer a self-order platform and delivery services

The offering by Jacky peanuts will offer customers a great experience on the different tastes, which will lead to increased customer satisfaction and customer loyalty as the customers' needs and expectations will be met. It is evident that there is a market gap. In addition, competitors do not provide the different varieties which will allow Jacky peanuts establish a sustainable competitive advantage.
2. Micro Market
Since the firm will be making use of the B2C model, building a good customer relation is critical. Customer base development as well as creating a platform through which the firm can interact with client is of essence to the success of the firm (Whitaker et.al, 1995). The business idea of Jacky peanut butter is to produce different flavours of peanuts butter. It is thus essential to have customer's loyalty through feeling the gaps in the market.
According to Jenab et al. (2006), 75% of parents recommended that healthier foods should be provided, as shown in the figure below.
Source: Statista, 2018
A report by Sora et al. (2009) indicated that about 80% of children in the UK consume junk on daily bases, thus have a high prevalence of obesity, which has been increasing, as shown in the figure below. 60% of them were seen to consume less nutritious foods. To respond to the grievance, about 75% of parents would prefer the reduction of facts and sugar on foods, as well as recommendations for healthier eating (Smartt, 2012).
Source: (Jenab et al, 2006)
The trends in increasing obesity and the high need for fewer fats create a high demand for healthier products among children, which Jacky peanut seeks to provide. Thus, as mentioned, our target customers will be children and youths aged 22 years and below who will have a preference for flavours and love peanuts.
It has also been found that most firm concentrate on production of regular peanut as shown on the figure below, which gives a lee way for Jacky peanut butter to diversifying in production of different flavours.
Source: (Smartt, 2012)
To confirm the secondary analysis that has been reviewed, Jacky peanut butter undertook a primary survey making use of questionnaires and interviews. The study was conducted on a sample of 100 expected to be part of the target market. 47.7% of the respondents were for having only peanut nutter without flavours, 31.6% wanted chocolate flavour, while 10.5% wanted fruit and strawberry.
Source: survey, 2019
The flavours were seen to receive favour among the respondents and formed 53.6% of the sam...