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Strategic Business Plan: Sandwich Shop

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Describe about the Strategic Business Plan for Small and Medium Enterprise: Sandwich Shop?


Executive Summary

This business plan is design for the Sandwich Shop who tries to establish their market in food and beverage industry. This business clearly demonstrates the vision and mission of the company along with their key success factor.  From the discussion it will be found out that, this business plan is developed after analysis the internal as well as external environment of food and beverage industry where the company wishes to start their business. However, this plan is developed along with financial budget and timeline.

1. Developed Proposal

The Sandwich Shop is newly establishes a small business to provide food and beverage in the food and beverage industry. The company tries to provide different types of food and beverage products such as cakes, cookies, soft drinks, hard drinks, chips, crisp, hot sauces, mustards, salad dressings, egg products, etc. According to the local market, products of The Sandwich Shop will be the first launched store in that particular area. Apart from that, in order to increase the profitability, The Sandwich Shop has to start chain business in different part of the country.

2. Business Profile

2.1 Vision and Mission Statement


Economic Mission

Community Mission

Product Mission

To operate the business properly and increase profitability rate with sound economic decision

In order to increase community support, engaging or involving more customers

To provide the finest food and beverage products with higher quality in reasonable price within efficient time


The vision of The Sandwich Shop is to increase profitability by enlarging business through chain marketing strategy and become the largest sandwich shop in the nation.

2.2 Business Goals and Objectives: SMART

The key objectives of The Sandwich Shop is to established the business successfully and increase the business in the country through retail chain business. However, the company has to develop more than 15 stores in all part of the country especially in the major cities within upcoming 2 years. Apart from that, within 2 years, gross margin of the company will be increase more than 50 percent. Moreover, tax profits have to be 12 percent extra after sales.

S (Specific)

The Sandwich Shop have to be precious about their organisation process in order to achieve vision and mission

M (Measurable)

Objectives of the company has to be quantified

A (Achievable)

The Sandwich Shop has to increase their business such as involving customer, shareholder slowly. Never attempt for too much.

R (Realistic)

The Sandwich Shop has to keep their resources such as money, materials, minutes, labor, in order to make the objectives.

T (Timed)

In order to achieve the objective, management or the CEO of the company need to state time. For example, increase 15 percent sales within 3 months.



2.3 Legal Structure for the business

In order to establish as well as increase the business, The Sandwich Shop has to maintain following legal structure -

Register business like sole trader: For employing the staffs or customer as well as shareholders, need to be a sole trader (Alberts, 2012). For example, have to pay fees for register, order for business cards, and straight out the business process to all including staffs, shareholders, etc.

Forming a partnership: It is one of the key aspects of developing legal structure for business especially for the organisation in business industry. Standard partnership will help in developing a legal structure to business.

Income Taxes: Owner of the Sandwich Shop has to pay all LLC taxes to the government along with their business profits.

Expenses and Formalities: The Sandwich Shop has to set up partnership and proprietorship as a sole trader.

Need of Investment: Ownership of The Sandwich Shop need to allow the corporate structure to their share through offering the stocks.

2.4 Identification of business offers of The Sandwich Shop

Offer to Customer: In order to engage customer need to provide several discount offer as well as combo pack. Need to offer especially in lunch and dinner time.

Competitive Edge: In order to identify the competitive edge, The Sandwich Shop needs to understand the potential competitors in the market (Fischer, 2014). Apart from that, has to understand properly about the buying behaviour of customers within the stores and note down the reason for that customer buy products from other stores.

Business Background:



Raw Materials
















Table 3: Business Start Up expense for The Sandwich Shop



Required Cash


Long Term Assets


Start Up inventory


Other Current Assets




Table 4: Start Up Assets for The Sandwich Shop

Purpose of Business Plan: The main purpose of this business plan is to forecast the future of The Sandwich Shop to others (Fulmer, 2008). The main purposes of this business plan are –

Figure 1: Propose business plan

(Source: 'Global Action Plan: EcoTeams', 2012, pp- 57)

Critical Success Factor: Following will be the key to success for The Sandwich Shop –

  • Training to employee for ensuring the best food and beverage preparation techniques with quick time
  • Design the store of the Sandwich Shop that will looks very attractive visually to customers
  • Operate fast and efficiently such as deliver order food at quick time to customers.

3. Internal and External Environmental Analysis

3.1 Characteristic of industry and important trends

Since past few years approximate 25 years ago, a new trend came that was unique development of food and beverage organisation. After starting the business, majority of company started their business being a speciality in food and beverage sector such as Dominos (Kneale, 2004). Pizza Hut, McDonalds, etc. Earlier, people demand to go for lunch or dinner outside especially in the restaurant. However, current trends in food and beverage industry that identified is that home purchasing. People in this busy schedule days have not sufficient time to go for dinner and lunch outside. Majority of people demands for home delivery from shops.

3.2 Identification of competitors and formulation a competitive strategy

The key competitors of The Sandwich Shop will be the Pizza Hut, Domino’s Pizza and Pap John.

Competitive strategy: In order to run the business successfully and enlarge business in all part of the country, The Sandwich Shop need to adopt several competitive strategies that demonstrated in the diagram below –

Figure 2: Competitive Strategy

(Source: Osherovich, 2011, pp- 75)

3.3 PESTLE Analysis

Political: The government of the country will supported the business and trading of The Sandwich Shop. Recently, the government of the country are controlling fast food market due to health concern.

Economical: Price of raw materials increased too high and rise of energy may effect the business of The Sandwich Shop. Apart from that, RBA set the policy for achieving 2 to 3 percent inflation rate average only.

Social: People in these days are health concern. Therefore, The Sandwich Shop has to provide healthy products with high quality (Osherovich, 2013). Apart from that diversify culture may effet the business of the company.

Technological: Within the country, the government increased their communication technology. It may slow down the supply cost for Sandwich Shop. However, research and development centre of the country may directly funding the investment of the Sandwich Shop.

Legal: According to the government of the country, new business organisation has to be licensed in order to run their business.

Environmental: The environment of the country is business friendly. Government announced to support the food and beverage industry in low population locations.

3.4 Porter five-force analysis

Bargaining power of the supplier

Bargaining power of the customers

Threats from New Entrants

Threats of Substitutes

Threats from rivalry

The country is known as the agricultural country. Therefore, large number of substitute products is available for the company in food and beverage industry. Apart from that, diverse distribution channel may help the Sandwich in retailing their business.

The population of the country is increasing. Therefore, The Sandwich Shop has major changes in establishing their business in the food and beverage industry. On the other hand low dependency on distributors may help in increasing profit margin for The Sandwich Shop

Majority of owners especially the existing food and beverage marketers like Domino’s Pizza Hut, etc frequently open new stores in several locations of the country (Ralston, 2012). As the new stores have already brad name in the market, it may affect badly into the business of The Sandwich

The substitute products in the food and beverage industry provide low cost products that may create lot of troubles to The Sandwich Shop. Apart from that, substitute company has product differentiation that substantially effect on the business of the Sandwich.

In food and beverage sector of the country, there are already various companies who established string brand name. This will create lot of trouble to the Sandwich Shop. Apart from that organisation size as well as budget is too much low rather than other food and beverage organisation. It will also effect in business process of the company.  



3.5 SWOT Analysis

Strength: Ned to produce fast menu to customer and deliver style of the staffs will be attractive.

Weakness: Effective management of all franchises will be the key weakness for the Sandwich Shop in food and beverage industry.

Opportunity: The Sandwich Shop launched their own application for Smartphone. It will be provide several opportunities in enlarging customer base and increasing business value.

Threats: The main treats that will face The Sandwich Shop will be from their competitors who are already established their market in food and beverage sector.

4. Developing Marketing Plan

4.1 Identification of target customer and value proposition

The target customer of the Sandwich Shop will be the 15 to 30 years age people and the major target group of the company will be the office goer people.

The company will provide substantive value proposition in order to parking the cars for the customers (Rosnan & Mahmod, 2012). Apart from that, Sandwich Shop will provide the premium price for the average products in their stores.

4.2 Formulation of overall marketing objectives and their KPI’s

Developing price strategy and tactic: The price of the products of The Sandwich Shop will be comparatively low rather than other organisation in food and beverage industry within the country. However, the company will immediately add value added features in their connivance and service.

Developing property strategy and tactic: The company will work closely with their marketing teams in terms of ensuring new trademarks.

Developing place strategy and tactic: The company will involve own logistic in order to deliver purchased item. The company may provide free delivery service within 5 kilometres and demand charged when it exceed 5 kilometres.    

Developing positioning strategy and tactic: for the busy schedule people, the company will launch Smartphone application in retaining their premium customer. Will provide high quality product or baked for the customer especially for the office work people and school students.

Developing promotion strategy and tactic: In order to promote the business, The Sandwich Shop may develop advertising strategy through social media. It will be the best strategy to attract people and understanding them about their new products.

Developing market budget and timeline:

Marketing Budget:






Raw Materials










Room Rent




















Trade Shows



















Year 1

Year 2

Year 3

Year 4

Year 5

Current Assets

£ 64302

£ 75483

£ 106500

£ 150500

£ 193256

Long Term Assets

£ 72565

£ 96322

£ 166510

£ 225960

£ 366520

Current Liabilities

£ 52545

£ 27215

£ 30514

£ 32110


Long Term Liabilities

£ 65725

£ 84662

£ 75520

£ 51250

£ 56950

5. Developing Human Resource Plan

5.1 Forecasting human resource requirements

In order to forecast the required human resource, the Sandwich Shop will conduct online survey, calculate the availability from society, analyze work operations and properly judge the quality of employee.


5.2 Establishing pro forma staff roster

For establishing pro forma staffs roster, the company may calculate revenue, estimate costs and liabilities, estimate cash flows and develop a chart where upcoming five years pro forma will be defined (Refer to appendix 1).

5.3 Demonstrating the business flow

5.4 Establishing critical task to assign and monitor

In each department of the company such as deliver service, cocking service, and logistics service, human resource department will involve one supervisor. In order to monitor the working performance, each supervisor will get a proper target for sales the products.

6. Developing Risk Management Plan

6.1 Identification of top risk in business

6.2 Impact of risk in business

There are several impact of risk in business such as forcedly close the business, decrease profit margin, etc

6.3 Monitor and implementation

In order to monitor risk, the company may track the risk systematically.

The company will develop consistently and reporting comprehensively.

6.4 Evaluation and monitoring using benchmarking

The company will compare their employee’s performance against the standard. First benchmarking will be outcome of the business. Second benchmarking will be assess of reasonable of targets.

6.5 Implementation of action plan  

Raising awareness, training, reporting and monitoring, etc will be the action plan that may implement in the business process of The Sandwich Shop when the start their business in food and beverage sector.


Reference List

Alberts, M. (2012). The Importance of a Business Plan when Planning a Lexicographical Project.Lexikos9(1). doi:10.5788/9-1-922

Fischer, J. (2014). Starting a business. Broomall, Pennsylvania: Mason Crest.

Fulmer, T. (2008). Cancer's long-distance plan. Science-Business Exchange1(24), 5-6. doi:10.1038/scibx.2008.568

Global Action Plan: EcoTeams. (2012). Social Business2(1), 49-59. doi:10.1362/204440812x13366561771946

Kneale, P. (2004). Teaching Intrapreneurship: Cases from Business. Planet, (12), 8-9. doi:10.11120/plan.2004.00120008

Osherovich, L. (2011). Plan B for diabetes. Science-Business Exchange4(19). doi:10.1038/scibx.2011.532

Osherovich, L. (2013). Plan B for anti-miRNA. Science-Business Exchange6(47). doi:10.1038/scibx.2013.1339

Perran, A., Perran, S., Mason, J., & Rogers, L. (2013). Beginning SharePoint 2013. New York: Wiley.

Ralston, M. (2012). Building a Social Media Plan To Bridge the Generation Gap and Strengthen Your Business Plan. Proc Water Environ Fed2012(1), 321-329. doi:10.2175/193864712811694640

Rosnan, H., & Mahmod, R. (2012). Business Turnaround Plan: The Experience of Malaysia Airlines.South Asian Journal Of Business And Management Cases1(2), 211-221. doi:10.1177/2277977912459444

Appendix 1:


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