FOODELICO

Table of Contents

1. Executive Summary
2. Business/Enterprise Description
2.1 Company Overview
2.2 A brief History
2.3 Location and Facilities
3. Product and Industry
3.1 Product
3.2 Industry Analysis
3.3 Competition

3.4 SWOT Analysis

4. Marketing strategy

5. Operations Plan

6. Management Summary

6.1 Management team

6.2 HR Plan

Roles and Responsibilities

 Product Organizational Charts

Staffing Management

7. Financial Plan

8. Selected Options and Critical Measures

9. Milestone Schedule
01. Executive Summary
02. Business/ Enterprise Description

2.1 Company overview

Aims to market edible cups initially and then to expand the product mix to edible cutlery
and so on and so forth. Plastic cutlery is generally regarded to be the only choice for
disposable, cheap cutlery. However, as an alternative to this edible cutlery idea
unfolded. The main driving force behind this idea is to strive to minimize the amount of
plastic that is hugely disposed and consequently pose a threat to the sustainability of
the environment and to our health.

“business name” aims to offer this creative alternative here in Sri Lanka at an affordable
price and to render corporate social responsibilities by our firm to all associated parties.

2.2 Brief History

Initially the founders were to decide whether to import the edible cutlery or to produce
those themselves. In their attempt to pick one from that choice, producing the edible
cutlery by themselves and to start from scratch seemed more beneficial. And that would
contribute to the GDP as well. Therefore, the starting capital funding will be done
accordingly.

2.3 Location and facilities.

The location of the mini production plant and the office premises of “business name” will
be in Avissawella. The reasoning behind selecting Avissawella as the location was
since there is a current industrial zone in Avissawella known as the Seethawakapura
Industrial Park.
Therefore, due to this fact there would be the ideal amenities that are required to carry
out our production process. And to compliment that reason and in line with the
government’s polices to relocate offices out of Colombo has also has been considered.

Thus, by opting for this place we aim to fulfill to purposes. That is to provide
employment opportunities to the locals in the neighborhood and not to be a party that
contributes to the heavy congestion in and around Colombo.
03. Product and Industry

3.1 Product or Services

As the world’s population shows a rapid growth, so does the amount of garbage that

people throw out. Comfortable lifestyles had led to the use of disposable products, such
as soda cans, plastic cutleries or bottles of water, but the use of these products has led
to an increasing level of plastic pollution around the world (Conserve Energy Future,
2018). Plastic is said to last for a long time and negatively affects the environment in the
form of air, water and land pollution due to the major toxic pollutants it is composed of
(Conserve Energy Future, 2018).

What if you could eat the packaging after consumption? It could be great and will make
a big difference! Disposable packaging is a major issue today, every food product that
we buy: a coffee, a smoothie, a cold beverage or prepared food, is wrapped up in
plastic. Therefore, we came up with the concept of producing edible cutleries. In the
time been the focus is on manufacturing edible cups which are biodegradable. Further,
in the future we will be expanding our product range to edible platters, spoons, straws
and many more.

Our products are 100% environmental friendly and we also provide employment
opportunities for the local low income earning individuals and most specifically women
who find it difficult to find jobs. Here, one of our focus is empowering women with
providing a hand in helping them to earn a living.

3.2 Industry Analysis

Edible cutlery exists in most of the European countries. However, not in our country, Sri
Lanka. Foodelico will be the first business to initiate a social project as such. Therefore,
there are no evident industry trends and movements for the product in the local market.
As the first organization to introduce edible utensils to the market we have the possibility
of being the market leader in the industry.

3.3 Competition

Foodelico will be the first business to introduce biodegradable cutlery to the Sri Lankan
market. Therefore, currently competition from the similar product range will not be
faced. However, our products will be an impact to the huge number of locals who retail
plastic cutlery and packaging’s. Therefore, there will be intense competition from them.

3.4 SWOT Analysis

SWOT analysis is a framework used to evaluate a company's competitive position by

identifying its strengths, weaknesses, opportunities and threats. Specifically, SWOT
analysis is a foundational assessment model that measures what an organization can
and cannot do, and its potential opportunities and threats. (Staff, 2018)

We conducted a SWOT analysis for our business Foodelico.

Strengths

 Trust between the partners.

 All the partners and employees are committed towards working hard for success.
 Every individual involved in the business have up to date information about their
roles and responsibilities and what they are doing.
 Narrow span of control, where the managers oversee only a few numbers of
subordinates leading to easier control.
 The product does not exist in the current marker therefore, high chances of being
a market leader for edible cutleries.
Weaknesses

 Minor conflicts.
 Due to the employment of labor from different rural areas there will be minor
cultural obligations.

Opportunities

 Government support due to the benefit to the environment and the job
opportunities to the poor.
 Positive feedback and support from environment enthusiasts.
 Will not face any consumer boycotts or petitions.
 Women empowerment brings in more benefits.

Threats

 Severe competition from plastic cutlery producers.

 Rational customers will be difficult to convince in order to purchase the products.
 Importing of edible cutleries from overseas.
04. Marketing Strategies

“Why not eat the cup rather than destroying mother earth”

Billions of plastic cups are released every day to our environment. Endless partying,
events, personal liquor consumption and many more contributes to this disastrous
activity. Creating edible cups would help to save our mother nature.

First since this is a newly introduced concept to Sri Lanka we would carry out a
market research irrespective of the age: This is done because different people have
different types of selections and also different occasions requires different types of
cups. So the best way to find out the flavors are to carry out a market research.

Since a person who consumes alcohol will need to taste their cup different from a kid
drinking a soft drink. Also another key aspect to address in this market research is
about the people who have diseases that do not have permanent cure such as patients
who suffer from diabetics. Such people will have a different choice. Therefore we
analyze these aspects of our product. What our market is exactly and where and how
we need to target and produce the product.

Conclude on what flavours and designs would be most demanded and is most
demanded, target them and create a stabilized idea on exactly how the product(s)
should be and how it needs to be marketed.

Therefore questionnaires can be sent around or even a face to face interviews

would be a great help to carry out the research.

As already planned the product will be manufactured using jelly and gelatin. So with the
help of this market research we can find out the desired flavors and supply and cater to
consumer’s needs.

After finding out what exactly suits the consumers, since this is a new product,
we would like to proceed with cost plus pricing. This is because our product is a
newly produced product here in Sri Lanka. Thus the best way to sell this product is to
add a certain amount of profit to cost and call that as the price. This is a perfect way to
cover up the revenue expenditure at the beginning. Because recovering the capital
expenditure may take time.

When the marketing campaign is concerned, since this is a product that is served
irrespective of the ages we can surely utilize almost all types of Medias. Therefore using
media to advertise and convey the product to possible consumers: For instance in order
to spread the knowledge about these edible cups to kids and the elderly we could
depend on television advertisements.

Television today is widely viewed by many adults and kids. Thus a perfect way to arise
a need for these special cups.

In order to attract the attention of the youth the best way of advertising would be using
social Medias. As we all know the entire younger generation today always depends on
social media, also the youth is very keen on trying out new items, combining these two
strategies we can create a great impact on the youth to buy the product.

When the sales are taken place in stores we can introduce the product to customers
with free sampling. Thereby customers with little knowledge on this product would be
open to trying it and it would be possible for “Foodelico” to acquire new customers in
this manner for their edible cups product and also existing consumers are more
motivated t continue purchasing. This will help the consumer to get to know the taste
and what this product is about as a whole and the reason as to why we are producing
this product. Eventually consumers will have a direct idea and more sales revenue can
be incurred.

Since this product can be used not only at one season but all year round ( i.e: there
would always be birthday parties and meetings and events conducted by various parties
all of whom find plastic disposable cutlery specially plastic cups to be the low cost, easy
method of providing cups), continuous marketing and advertising could be done while
increasing the said marketing campaigns in power and frequency during seasons where
parties and events are more frequent and common.
In conclusion the main marketing strategy we are planning to use is the catch phrase
which is mentioned about. Which is stated as “Why not eat the cup rather than
destroying mother earth”.

This is because our company’s main aim is to provide a social service whilst making
profit. Save Mother Nature from this disastrous attack of plastic and conserve it for our
future generations. As per today in the society people tend to be more eco-friendly and
tend to support to preserve the nature. Thus edible cups will be the perfect way to at
least reduce this vicious attack and make sure our mother nature is preserved for many
generations to come.
05. Operations Plan

Our production plant will be located in Avissawella which is a less urbanized area. Our
decision was fueled by the facts that,

I. Avissawella is not an urban area but it is also not considered to be

a rural area. It is in the Colombo district but not urbanized.
II. Avissawella has an industry zone which has several factories
located there.
III. Locating in Avissawella will help us to avoid congestion to and
from Colombo.
IV. Known to be convenient for transportation.

Since we as “Foodelico” are starting our production process in a small scale, we

considered using some less expensive and small equipment like a mold for example to
help us in making the edible cups. Also, we will only require a small space for our
production at the moment. With time, we would give thought to bringing in new
technology and the machinery which is used in large scale production units in other
countries. We strongly desire to keep our costs low as possible until this business is in a
position to produce in large scale.

Some of our tasks include, heating, drying and concentration, freezing and chemical
preservation.

We will also go through all the legal environment requirements like,

licensing and bonding, Insurance coverage, permits, health and workplace regulations,
and trademarks, copyrights or patents once our plan is approved.

Our plan is to buy our supplies from local wholesalers/retailers rather than exporting
from elsewhere. This will help us to be socially responsible towards our community by
helping the local suppliers and will also not harm the country’s exchange rate.
Edible cups is a completely new concept to Sri Lanka, so firstly, we intend to start by
producing a few units and also pass out a few samples for the consumers to try. This
way we would be somewhat aware of the demand patterns.

One of our main aims is to provide jobs for the young, talented and unemployed youth
in rural areas as well as women, provide some sort of empowerment for women and
also the youth however minute it may be. We look forward to provide our employees
with training for the necessary tasks and also we intend to improve the living standards
of the people in rural areas.

Furthermore, we also aim to extend our product line to cutlery if this becomes a
success.
06. Management Summary

Includes the Structure of individuals directly involved in the Business, and depicts and
image of how the business is being managed and who the members of the
management are, the positions they hold and the Roles and Responsibilities. Also
portrays and idea of the management of Human resources (The Balance Small
Business, 2018).

6.1 Management Team

CEO (Chief Executive Officer)

Chief Financial Analyst

Chief of Marketing and Sales

Head of products and Operations

CTO (Chief Technological Officer)

Head of Human Resources

6.2 HR Plan

6.2.1. Introduction:

Human Resource management is an essential part of the business. In order for this
production line for edible cups to work “Foodelico” needs its partners to work together
with a controlled and orderly hierarchy and a structure, therefore the roles of
management in the business are effectively taken up by the participants based on who
is best at what sector. The HR plan is an aid to the management of the human
resources who are directly involved in this project
6.2.2. Roles and Responsibilities:

Roles and Responsibilities are needed to be known by all individuals associated with
the project or company as is the case with “Foodelico”. It is essential that all partners
have a clear understanding of the responsibilities, tasks and issues they have to
undertake and address. And to what sectors that lead to the success of this product
(edible cups), that they should work for.

CEO:

Held responsible for overall decisions of the company and plays a major role in the
leading of the project or company over good and bad economic states. Oversees the
work of technological financial and operational levels of the company as well as other
levels and coordinate all activities that eventually contribute to the final producing of
quality products and establishing the company name and brand powerfully in the
market.

Head of products and Operations:

Responsible for the production and provision of goods and services and the running of
organizational activities in a smooth manner as well as ensuring that the company is
catering to the correct needs and wants of customers. Is in charge of overseeing the
current product introduced through the project and its development and performance.

Basically all aspects of the product and ways of improvement for it is also a
responsibility. In a nutshell the supplying of goods and raw materials for the production
of the edible cups and thereby ensuring that its production is running smoothly is the
general task while being responsible for various improvement aspects of this product
when the need arises.
Business development and chief financial analyst/CFO:

Responsible for recommending decisions that are to be taken regarding financial issues
and basically concentrates on managing the financial sector of the company based on
analysis carried out on various market trends and financial expenses, also aids the
company by paving a path for better financial deals.

The project of producing edible cups requires supplies of raw materials and the financial
analysts analyze areas of unwanted expenses and also concludes on what aspects
need to be allocated with more financial resources and what aspects need to be
allocated less and is responsible as such for allocating financial resources accordingly.
Addresses the sector of managing the finances of the company or project.

Chief of Marketing and Sales:

Responsible for the overlooking of the planning and developing of marketing and
advertising campaigns and operations and also the initiation of such campaigns in
order to make edible cups a success. Main intention being to create revenue and
generate sales with successful marketing of this product as in most cases in this case
too since “Foodelico” is still at its initial stages responsibilities of the chief of Marketing
and sales expanded to include sales management, new business development, product
development, distribution channel management and customer service.

CTO-Chief Technological Officer:

Responsibility of developing the company strategies or using technological resources

and make certain that they are used efficiently and securely as well as effectively.
Tasks also include collaborating with other chiefs to computerize work and processes
and also update company systems and assure that departments use technology
profitably while ensuring their security. Responsible for analyzing technological
advancements and trends and providing “Foodelico” with technology accordingly to
aid in the advancement of edible cups.
Head of HR:

Deals with one of the most important resources in the company: Humans, involves
tasks ranging from hiring to retaining and also training and managing all human
resources associated with “Foodelico”. Ensuring that the correct amount of human
resources are present and no more and no less is hired, make certain that suitable
individuals are hired with the appropriate levels of skill and also these valuable
employees are retained in the organization. Ensuring correct pays and salaries. Since
“Foodelico” has an aim of providing jobs to the unemployed providing trainings and
rewards for all employees appropriately while also keeping track of an absenteeism and
negative aspects of these human resources in “Foodelico”.

6.2.3. Project Organizational charts

In order to illustrate the responsibilities of team members and their project tasks a
graphic display is included. (RACI) chart representing responsible, accountable, consult,
inform is used to conveying the roles and responsibilities for the project team for edible
cups. Once all employees are hired and considered (including the functional managers
and department managers and all designers and other related persons of the
organization) RACI chart could be produced based on their roles and responsibilities.
As of now excluding the operational level and middle level employees the present intial
members of this venture will hold positions as mentioned above.

6.2.4. Staffing Management

Staffing management depicts when and how human resource requirements will be
acquired, the timeline for hiring and acquiring of resources and also the releasing of
them, any training required for any identified lack of skills in certain resources. Includes
rewards for well performing employees in “Foodelico” It is important to note that
depending on the expansions done in the near future to establish “Foodelico” with
more employees and market presence there may be other items included in staffing
management (government and/or regulatory compliance, organizational health and
safety, etc.

6.2.5. Staff Acquisition:

For the Edible cups project, the project staff directly associated in its production
consists entirely of internal sources excluding any suppliers and distributors as they are
not directly involved in the production sector of edible cups. Employed functional and
department managers will work the coordination of this production process Resources
need to be approved by related managers in the company.

6.2.6. Resource Calendars

All resources are required before the project can begin. Employees are required to work
8 hours per working day. And 45 hours per week as per norm for the basic health and
comfort of employees.

6.2.7. Training

The organization is in the process of employing required staffing. Hiring in “Foodelico”

is done with the intention of providing a benefit to society by providing jobs to the
unemployed since the idea of the business coincides greatly with providing a social
service, however employees with the required skill sets are hired and if any
requirements for training are identified, funding could be provided from the project
reserve (Human Resource Management, 2011).
6.2.8. Performance Reviews

All employees work will be reviewed frequently on an orderly basis throughout the
course of work, employee’s performance will be evaluated based on the duties they
were supposed to address and feedback will be provided (Human Resource
Management, 2011). Employees with low performance levels could be directed for
training

6.2.9. Recognition and Rewards

Upon the successful completion of tasks, based on the gravity of the tasks the
employees are rewarded if deemed possible.

 Rewarding methods include:

Pay raises, Promotions and more responsibility and authority (to mention some
of the most main and general methods of reward).

Our company “Foodelico” also uses rewarding techniques such as: Points
reward system (by the end of which more rewards could be acquired),
Certificates of achievement, coupons (for impromptu time off, or spot awards,
etc.)

 Recognition methods include:

Recognition in front of peers, Thank you meetings, Wall of fame or use

department recognition bulletin boards, etc.

And a more unique method is peer-to-peer recognition followed by our company.

07. Financial Plan
7.1 Budget.
This is the estimated budget for the month that the business begins:

Income

Description Rs.(000)
Investment 1000
Bank Loan 1800
Estimated sales 650

Expenses

Description Costs (Rs.000)

Delivery Van 1600
Molding Equipments 150
Refrigerators 200
Furnitures and fittings 100
Building rent 50
Fuel charges 10
Employee’s Salaries 150
Administrative salaries 75
Gelatin & Jelly 30
Other ingredients 30
Utility expenses 50
Loan installment 30
Loan Interest 15
Other expenses 20
Notes:

 Delivery van and refrigerators were purchased using a long term loan of 5 years
with 10% interest.
 Depreciation to be charged on all non- current assets is 10%.
 Estimated production units for the month 50000
 Estimated cost per cup is Rs.8.94
 Estimated selling price per cup is Rs.13

Break even

Description Costs (Rs.000)

Fixed cost 307,000
Variable cost 140,000
Total cost 447,000
Variable cost per unit 2.8
Contribution 10.2
Break even 30098

Cash Flow

Cash Inflows

Rs.(000) Rs.(000)

Investment 1000
Bank loan 1800

Estimated sales 650

Estimated cash inflows 3450

Cash Outflows

Delivery van 1600

Molding Equipments 150

Refrigerators 200

Furnitures and fitting 100

Building rent 50

Fuel charges 10

Employee’s Salaries 150

Administrative salaries 75

Gelatin & Jelly 30

Other ingredients 30

Utility expenses 50

Loan installment 30

Loan Interest 15

Other expenses 20

Estimated Cash outflows (2510)

Net Cash flow 940

Estimated profit

Selling Price Rs.13

Total cost per unit Rs.08.94

Profit per unit Rs.04.06

Total Estimated profit Rs.04.06*50000 = Rs.203,000

08. Selected options and critical measures

 Seek new premises

Choosing a premises that close to the customers, clients and suppliers and also
it must be easy to receive delivers of goods.
 Seek foreign partners
Seek foreign partners will help the business to grow faster, increase productivity
and also it will be helpful to generate greater profits. Additionally it paves the path
giving access to markets with increased capacity. (Businessfirst.com), (Robert
s.Kaplan)
 Invest training for employees
Invest training for employees will affect to the business in a good way.
Employees will have the courage to give their fullest support and contribution
towards to the productivity of the business since they acquire new skills.
Additionally since the employees are skilled for various tasks they feel more
motivated and fresh. (Businessfirst)
 Employee new staff
Employee new staff to the business will be helpful to brings new, innovative ideas
to the business and also different kinds of talents and skills to the business.
These new ideas regarding the management strategies, and also creating a
forward thinking pattern and an approach will increase the productivity. It
stimulates both advancement and the growth of the productivity to a greater
level. (Ward, 2016), (Business.com, 2017)
 Invest in information technology systems
Though the business uses the simplest technology, it will improve the productivity
of the business in an effective way. It paves the path to a better customer service
since the ability to give users and customers the information they need to know
and to carry out their own tasks efficiently. (Morrison, 2016)
09. Milestone Schedule for the coming three years

2019

Speed up the process of

producing the edible cups
to cater to the market
efficiently and effectively
To consider the viability of
adding another product, in
addition to the existing
product.

2020

Plans of further expanding

the product portfolio to
that of edible cutlery that
includes edible plates as
well!
To acquire more relevant
machinery and to recruit
more personnel to
facilitate in the expanded
course of business

2021

Plans to receive the

relevant accreditations
from the relevant To be a well-established firm
authorities! and continue to grow by
upholding our stringent
measures and practices!

2022

To seek for further avenues in prospering

and or extending the status quo of the firm.
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