Buffalo Farmhouse opportunity analysis
It will be committed to improving the quality of vegetables from time to time such that a higher level of nutritional value will be attained. Under the management of Mr. M, the farm will also provide training to some few youths who will assist the owner to run the hydroponic business. The business will be based in Flacq district, Belle-mare, and it will concentrate in supplying their vegetables to hotels, restaurants, and local consumers who could prefer a direct supply of vegetables from the source. The main products that the firm will produce include tomatoes, vegetables, cucumber, and turf on a three-quarter piece of land. Brown-Paul (2014) says that in collaboration with other agricultural agencies, the government is committed to providing financial support and guidance to encourage more entrepreneurs into this sector.
Opportunity Recognition Process Urban farming is a growing phenomenon in many several parts of Mauritius, especially in Flacq district, Belle-mare, and research show that many regions are recognizing the critical role hydroponics plays in economic growth, environmental sustainability, and community development (Barringer, 2015). Currently, the region Flacq district obtains its food supply from outside the district. The distance that these products have to be transported increases the cost of the vegetables and the taste of the vegetables and fruits get lost, especially the imported foods. Additionally, with the prevailing desert conditions in the country, vegetables and fruits supply using the traditional farming methods does not meet the needs of the increasing population in Flacq district, Belle-mare (Brown-Paul, 2014). Over the recent years, the increasing urban population in Flacq district has been experiencing a deficit in the supply of vegetables and fruits.
This implies that other than supplying the product to hotels, restaurants, and supermarkets, Buffalo farm will have middle-income customers from the region to buy our products. Thus, the idea of starting a hydroponic business in Flacq district, was assessed from the survey conducted by Srivastava & Lee (2005) as well as the PESTEL analysis in Appendix 1. Based on these findings, Buffalo farm will turn from a business idea to a great business opportunity which will contribute to the country’s increased revenues, better health of the population, job creation, a reinvigorated economy, and a rejuvenated image of Flacq district, Belle-mare. Hydroponics is the act of growing high-quality vegetables in a closed cultured environment such as a greenhouse (Brown-Paul, 2014). This proliferation has come from nowhere, and this has created an opportunity for consumers to buy fresh vegetables and fruits from an open-air market.
Based on these conditions, Buffalo farm will not only sell their products to hotels and restaurants but will also sell to the markets mentioned above. With these trends in mind, Buffalo farmhouse will concentrate on supplying hotels, small retailers, and direct consumers in the district. In strategic analysis, a strategist is expected to understand and get by the competition in the market. Mostly, directors define competition excessively and narrowly as though it happens in the contemporary business environment. The quasi-monopolistic nature of the hydroponic industry in Mauritius will pull better earnings at the expense of the suppliers. Bargaining power of buyers In the hydroponic industry, harmonizing many consumers to buy consistently from one seller is highly influenced by the consumer’s ability to buy in volume relative to other sellers’ offer.
This condition implies that a consumer will use his or her monopolistic or quasi-monopolistic nature to pull better purchases at the disbursal of the market. Additionally, the switching cost of consumers from one seller to another is low, and this implies that the bargaining power of buyers is higher. Threat of substitutes All farmhouses in the industry are afraid of being substituted by their competitors. Personal Criteria Buffalo hydroponic investment is a new business venture in Mauritius which aims at meeting the needs and satisfying the needs of the increasing vegetable requirements in the district. The primary objective of the business will be to proliferate because it is among the few hydroponic companies in the area. The target customers for the industry will be restaurants, hotels, and direct consumers who want fresh and nutritious vegetables from the source.
As the founder of the business, Mr. / Mrs. Flacq district, Belle-mare is a home for ta large population compared to other adjacent rural districts, this implies that the region requires more sources of food supply to cater for this population. By taking the lead, Buffalo hydroponic farm will supply the local restaurants, supermarkets, and hotels with fresh, tasty, and nutritious food all the year-round. More than that, Buffalo hydroponic farm will contribute to the country’s increased revenues, better health of the population, job creation, a reinvigorated economy, and a rejuvenated image of Flacq district. References Agriculture Organization (Ed. The state of food insecurity in the world 2014: Strengthening the enabling environment for food security and nutrition. Hydroponics in Mauritius. Practical Hydroponics and Greenhouses, (139), 24.
Goswami, T. K. , Nath, A. S. , Genello, L. , Semmens, K. , & Thompson, R. E. , & Kramer, M. R. The link between competitive advantage and corporate social responsibility. Harvard business review, 84(12), 78-92. Srivastava, A. Environmental Legal • Consumers are concerned with eco-environmentally friendly investors and those who are not sensitive to this concern will lose the market share. • Statute laws have been modified to encourage investment in hydroponics Appendix 2 SWOT analysis Strengths Weaknesses • Turning demand for veggies, both consumer and concern markets. • Provide employment. • Environment-friendly patterns favored. • Flexibility in production. Appendix 3 Porter’s Five Forces Summary Thread of New Entrants Low Bargaining Power of Suppliers Low Bargaining Power of Consumers High Threat of substitutes High Exit Barriers Low Appendix 4 Start-up Expenses R 753 Start-up Assets R25000 Total Funding R25753 Assets Non-cash Assets from start-up R20 000 Cash requirements from start-up R5000 Additional cash raised R0 Cash Balance on Starting Date R5000 Total Assets R25000 Capital and Liabilities Liabilities Current borrowing R0 Long-term borrowing R24207 Account Payable R0 Other liabilities R0 Total Liabilities R24207 Capital R0 Planned Investment R0 Investor R0 Additional Investment R0 Total planned Investment R5753 Start-up expenses R753 Total capital and liabilities R24207 Loss at start-up R753 Total Capital and Liabilities R25000 Total funding R25000.
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