QUARTER FINAL S3 | BUSINESS CASE SCENARIO 07 | FARM TO TABLE

Company Name: Fresh Growers,

Fresh Grower is a Pune based company started by Chitranjan Desai. Chitranjan was working in USA with a fortune 500 company in IT Sector. After a well-paid job and a stable career in concrete jungle called cities, his yearning to get closer to nature became stronger and small gardening activities was unable to content his desire. He stumbled upon few old Indian food related books and found that eating freshly grown foods has high benefits to our bodies. Idea stuck with him as he has seen so many farm to table restaurants in USA as well. finally he decided to come back to India to do something with Farm-To-Table concept.

He has decided to start a business of procurement & delivery of Fresh Farm produces. Where he will procure farm produces from nearby farmers and will directly deliver to consumers.

He chosen Pune as base city as Pune was his hometown and he has few connections there, he contracted nearby village farmers, to get supply of fresh seasonal produce for his company Fresh-Growers. He found that farmers are rigid in their traditional methods like harvesting produce at a bit early stage and ripening them either through chemical process or natural process during transit and storage. Also, they were not agreeing on demand-based partial harvesting needed at early stage as they prefer to harvest whole farmland at one go to save cost and effort. Other challenge he found that it is extremely hard to convince farmers to use organic practices instead of using pesticides, urea & germicides.

In Chitranjan's concept of Farm-to-Table, produces must reach from FARM to Dining Table within 3 hours of harvesting, but as per his early calculation of total time required to do harvesting > transporting to packing facility >Packing> transport to consumer’s place, would take around 6 hours if all goes as per plan. But at implementation he realized that even 6 hours is hard to manage many times.

Sr No. Activity Average Time Consumed Remark

1

Harvesting

2 Hours

Manual harvesting.

2

Transport to Packing & Cleaning facility

30 Minutes

Tractors are sued at this stage.

3

Sorting Cleaning & Packing

2 Hours

They pack Shrink-Wrapped vegetables & Fruits in individual order-based carton packing.

4

Transport to Consumer’s place

1 Hour 30 Minutes

2 Companies Van (Tata 407) caters requirements of whole city.

Total Time Consumed

6 Hours

Marketing was again a challenge as consumers found it very convenient to purchase either from Local Vendors Or from App Based daily need ordering services Both Local vendors & App based services claimed that they are supplying fresh produces as well.

He Established Fresh-Growers in year 2019 with Idea of providing fresh & unadulterated farm produce to Indian population. As a self-funded organization Chitranjan has invested Rs.10 Lakh from his savings as Initial Capital.

Useful Statistics:

Total Subscription As on 25Feb 2021

400 Households

Per Household daily average buying

200 INR

Average farm Produce purchase Cost To company per household (Paid to farmer)

170 INR

Growth Chart

Period

No. of Active subscriber

Remark

2019-20 Quarter 1

50

2019-20 Quarter 2

120

2019-20 Quarter 3

160

2019-20 Quarter 4

200

2020-21 Quarter 1

400

Lockdown Impact

2020-21 Quarter 2

500

Lockdown Impact

2020-21 Quarter 3

450

2020-21 Quarter 4

400

Ongoing

*Financial year- 1April to 31March
Graph

Startup Expenditure

S.No.

Particular

Amount

1

Company Formation

25000

2

Computers

100000

3

Furniture

150000

4

Heat Shrink Wrap Machine

35000

5

Printer

15000

6

Down Payment of 2 Delivery Vans

200000

7

Office Deposit

300000

Total

825000

Monthly Expenditure

S No.

Particular

Amount

1

Website & Digital marketing

20000

2

Promotional Material

10000

3

Labours & Farm Contractors

60000

4

Delivery Boys (4@15K)

60000

5

Packing & Cleaning Staff (4@8K)

32000

6

Office Admin Staff (2@25K)

50000

7

Office Rent

30000

8

Electricity & Internet

4000

9

Packing Material

10000

10

Tractor rental Charges + diesel

35000

11

Delivery Van EMI (20K Each Vehicle)

40000

Total

351000

Fresh Growers created a website and did social marketing to reach to its audience, also he has printed pamphlets and distributed them through newspapers. As a BTL activity they organized awareness campaigns in Housing societies. they started from one area of city to start deliveries with simple subscription-based delivery system and within one year covered most areas of Pune city.

Mr. Chitranjan Desai wants to expand his business to at least 3 metro cities, in next 2 Years. He needs a consulting firm which can help Mr. Desai’s organization to do business process reengineering & strategically meet his current and future business expansion requirements.

Your company got this responsibility as a consulting firm for Fresh Growers. Your company is charging Fresh Growers Rs. 80000 per month as consulting charges.

Assignment:
  • Fresh growers want to expand his business to other cosmopolitan cities to reach break even. AS a consulting firm prepare a 2 years expansion plan, considering Finance marketing human resource and IT Tools & resources in mind. (All Departments)
  • Identify & Resolve, all business-related issues according to your department. (Leader with Help of all Departments)
  • Create a Marketing brochure. (Marketing Department)
  • Create a Training and Skill Development Manual for field Employees. (HR Department)
  • Create and MIS reporting format for efficient reporting. (IT & Business Analysis Department)
  • Create a Fund raising proposal to support expansion. (For funding from venture capitalists). (Finance Department
Note:
  • A). It is advisable that every department follows and mentions the "Management Principal" used in the solution.
  • B). Data Provided is comprehensive but you are free to forecast and sensibly assume any data (which is not mentioned in Business Case). You should mention the logic behind such assumptions in your solution (if any).
  • C). Teams will be given a separate link to submit the solution on 26th Feb 2021.







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