A.

Company Information :

1. Company Name: Fresh Fruits and Vegetables

2. Registration Number: MZN1209/2017

3. Type of Business: Agricultural Produce Retailer

4. Number of years in operation: 7 years

5. Region & Local Authority: Lubombo Region, Siteki Town

6. Annual Turnover: E1,200,000 (approx.)

7. Number of employees: 15

B. Challenge Assessment (5 )

Challenges 1. 2. 3. 4. 5. 6.

1 .The target market is limited and there is high ✔️

competition.

2. The business location is not easily accessible to ✔️

customers and suppliers

3. Business equipment and assets are expensive ✔️

4. Banks and financial institutions are reluctant to ✔️

provide loans due to lack of collateral

5. The business struggles to raise equity financing ✔️

6. Government grants are not easily accessible to ✔️

small businesses

7. Lack of business capacity and mentoring support. ✔️

C. Business SWOT Analysis

i. Strengths:

Competitive pricing due to low operational costs.

Health and wellness trend: The growing health and wellness trend has increased demand for fresh fruits
and vegetables.

Variety: A wide variety of fruits and vegetables can attract a diverse customer base and increase sales.

ii. Weaknesses:

Lack of advanced equipment for storage and distribution.

Reliance on seasonal produce affecting revenue stability

Perishability: Fruits and vegetables are perishable, which can lead to spoilage and loss of revenue

iii. Threats:

High competition from supermarkets and roadside vendors.

Market vulnerability due to unpredictable weather conditions.

Rising costs of agricultural inputsIncreased competition: The rise of farmers markets, online grocery
services, and other specialty food retailers may increase competition and reduce the market share of
traditional fruit and vegetable retailers.

Fluctuating prices: Changes in supply and demand can cause prices of fruits and vegetables to fluctuate,
which may impact profitability and customer loyalty.

.iv. Opportunities:

Expanding into urban areas with online delivery services.

Introducing value-added products like fresh-cut or packaged produce.

Leveraging government programs promoting agriculture.

D. Strategies and Recommendations (28 marks)

1. Marketing Expansion:

a. Reaching new target markets and increasing brand awareness:

Partnerships and Collaborations: Partner with local or international retailers, online grocery platforms,
and farmers’ markets to extend brand visibility.

Market Segmentation: Focus on identifying different consumer groups such as health-conscious

individuals, organic produce buyers, or corporate buyers (e.g., supermarkets, restaurants). Tailor
marketing strategies to these specific segments by offering customized produce packages.

Organize community events promoting healthy eating with Lubombo Fresh Produce.

Benefits: targeting new markets expands revenue streams. Geographical expansion provides access to
global demand

Risks : Expanding into new markets involves logistical challenges, initial investment and brand
adaptation to local preferences.

b. Digital marketing strategies

Launch a user-friendly website with e-commerce capabilities.Set up or enhance an e-commerce website

where customers can directly purchase fresh produce, with flexible delivery options and an easy-to-
navigate interface

Email Marketing Campaigns: Build an email list through customer sign-ups. Send regular newsletters
with product offerings, special discounts, and seasonal updates to keep the audience engaged

Run targeted ads on platforms like Facebook and Instagram to reach urban customers.

Benefits:increased sales through convenient online platform and better customer engagement.

Risks :building a strong online presence requires initial and digital marketing, which may take time to
yield results

c. Leveraging social media:

Interactive Content: Host cooking tutorials, live Q&A sessions, or behind-the-scenes videos about
farming practices to build customer trust and engagement.Share engaging content, such as recipes using
fresh produce, to build a loyal following.
User-Generated Content : Encourage customers to share their meals made with the produce on social
media, offering discounts or prizes in retur

Use influencers in the food industry to promote the brand.

Benefits: builds a loyal ,engaged customer base .social media is cost effective platforms for increasing
visibility

Risk : Negative feedback on social media can spread quickly and constant engagement is required to
maintain visibility

2. Business Operations:

a. Increasing efficiency and reducing costs

Automation in Processing: Introduce automated sorting and packaging systems to reduce labor costs
and increase speed in post-harvest processing.

Invest in cold storage facilities to reduce post-harvest losses.

Schedule deliveries strategically to optimize fuel usage.

b. Streamlining supply chain and inventory management:

Just-In-Time Inventory System: Adopt a just-in-time (JIT) inventory model to minimize storage costs and
reduce the risk of spoilage.

Centralized Distribution Hub: Set up or optimize centralized distribution hubs to efficiently manage the
flow of goods from farm to market, ensuring fresh deliveries and cost efficiency.

Use inventory management software to monitor stock levels and avoid wastage.

Collaborate with local logistics providers for efficient distribution.

c. Improving customer service and satisfaction:

Customer Support Team: Implement a robust customer support system, both online (via chatbots and
live chat) and offline (phone support), to handle inquiries, complaints, and returns.

Train staff to provide excellent in-store and online customer experiences.

Implement a feedback system to address customer concerns promptly.

Loyalty Programs: Create a loyalty rewards program that incentivizes repeat customers through
discounts, early access to seasonal produce, or exclusive content.

Benefits: automation reduces human error, cuts operational cost and improves output

Risk: implementation a customer support system can incur additional costs

3. Financial Management:

a. Improving cash flow and reducing debt:

Receivables Management: Improve cash flow by offering discounts for early payments and ensuring
timely invoicing for business clients (e.g., grocery stores, restaurants).

Offer subscription plans to regular customers for consistent revenue streams.

Negotiate payment terms with suppliers to manage cash flow better.

Debts financing, refinance high interest debts with lower interest options or through debts consolidation
to reduce financial strain and improve cash flow

b. Optimizing pricing strategy:

Use dynamic pricing for premium products, adjusting based on demand.

Dynamic pricing: Implement dynamic pricing models based models on seasonality ,demand and market
conditions.

c. Financial forecasting tools:

Utilize software like QuickBooks for budgeting and forecasting.

Regularly review financial statements to identify trends and areas for improvement.

Benefits: accurate financial forecasting improves strategic decision-making. Scenario planning minimises
risk exposure. Risks: financial tools may have a learning curve for staff, and incorrect forecasting can
lead to poor strategic decisions.

4. Human Resource Management:

a. Attracting and retaining top talent:

Offer competitive salaries and benefits to employees.

Promote from within to build a motivated team.

Employer branding: Build a strong employer brand by showcasing the company's mission, sustainable
practices and work culture to attract told talent especially in a competitive market.

b. Employee training programs:

Leadership development programmes: identify high- potential employees and offer mentorship
programmes to prepare them for managerial roles.

Technical and soft skills training: offer training in agricultural techniques, machinery operation and
customer service. Unskilled technologies to adapt to new technologies like automation.

Conduct workshops on customer service and technical skills for handling produce.

Benefits : a well-trained workforce impro es efficiency, reduces mistakes and fosters employee loyalty.
Risks: Training programs incur costs and time, with no immediate return on investment(ROI).

c. Creating a positive workplace culture:

Celebrate employee achievements and provide wellness programs.

Encourage open communication and involve employees in decision-making processes.

Employee Recognition Programs: regularly acknowledge top performers through rewards, recognition
events or company-wide shout outs.
Benefits: a positive workplace culture reduces turnover and fosters employee morale. Inclusive
environments attract diverse talent. Risks: diversity initiates need to be authentic to avoid tokenism.
Workplace culture changes are time to implement and require continuous effort.

References:

Doulgui, A. (2010). Pricing strategies and models. https//researchgate.net

Muhammed ,T. (2023). The effect of Information Technology on Business and marketing Intelligence
Systems (pp.21-44)

Rane, N. (2023). Enhancing customer loyalty through quality of service: Effective strategies to improve
customer satisfaction, experience, relationship and engagement.

Wiley, B. (2024). Business strategy and the environment content. https//ideas.repec.org