Bhavini Vasanji                Semester 1

A063186                Year 3

Report:          Arran Aromatics Case Study



Attention Of:        Mr Bob Hogg

From:                        Miss Bhavini Vasanji (A063186)

Module:          Small Business Issues

Course:                BSc Business Studies: Part C

Date:                        26th November 2002

Word Count:                2986


  1. REPORT                                                                        P2

1.1.   Introduction                                                        P2

  1. Question A                                                                P3
  1.   Part 1                                                        p3
  1.  Importance Of Business Plan                p3
  2.  Key Elements                                        p4
  3.  Planning Tools & Models                         p5
  1.   Part 2                                                        P10  Key Environmental Elements                p10  Effect On Business                                p12

                1.2.3.  Part 3                                                        p13  Growth Strategies & Models                p13

  1. Question B                                                                P17
  1.   Memo                                                        P17

  1. REFERENCES                                                                P19


1.1.  Introduction

This report is based on Arran Aromatics, a small to medium sized business owned by Mr Iain Russell.  The business is located in Arran and has been in operation since 1989.  This report seeks to answer the question, “What next for Arran Aromatics?”  The business plan, environmental elements and growth strategies available for Arran Aromatics will be considered.

1.2.  Question A

1.2.1.  Part 1  Importance Of Business Plan

        “The business plan entails taking a long-term view of the business and         its environment.” (Burns & Dewhurst, 1996:180)  

Norton expands on this definition by stating,

        “A business plan is not only a requisite for seeking finance from         investors, but also an essential document to describe aims and         objectives and enable measurement of progress towards achieving         them.”  (Norton, 1999:17)

He also expresses that it takes account of the short-term,

        “The business plan provides the means to:

  • appraise the present and future of the business
  • work out short- and long-term objectives
  • establish a framework for action to achieve those objectives”  (Norton, 1999:17)

Thus a business plan is crucial in the establishment of a business, as it enables the entrepreneur to focus and crystallise his ideas.  Aiding the setting of objectives it also provides a way of monitoring the performance of the business. As well as bringing internal benefits, benefits can also be reaped from external bodies.  It acts as a vehicle to attract external finance and convinces investors of the legitimacy and advantages of the business, through identification of growth opportunities and portrayal of managerial talent.  It provides a means to show how to exploit the opportunity effectively with a coherent programme.  (Burns & Dewhurst, 1996:180)  Analogically the business plan is akin a geographical map in planning and implementing a long journey.  In that one is required to; appraise the present and future journey e.g. checking the weather at present and in the future, work out the short- and term objectives e.g. short term objective to leave on a certain date and the long-term objective of reaching the destination in 4 days and finally, establishing a framework e.g.  Working out which routes are available to take and method of transportation.  Signposts along the journey also enable one to monitor progress, as does a business plan.  Key Elements

A business plan template is noted below.  However it must be acknowledged that it is only a guide line.  Since if the plan is used for internal purposes it may omit some sub-sections, where as a plan for external use may be extended and more detailed.

  • Capabilities of the business (and its owners)
  • Understanding the environment it faces
  • Understanding of its customers’ requirements
  • Strategic objectives
  • Tactical plans for achieving objectives
  • Robust financial figures

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For firms that wish to make significant strides, establishing a strategic business plan that provides the firm with a clear, unified direction and enumerates the steps necessary to get there is essential. It should convey a clear mission and vision statement, strategies, goals and future actions. Presently the vision Arran Aromatics has established is,

“Our vision is simple: to make the best products we possibly can in order to enrich the lives of the people who use them.” (Russell, year unknown, )

Thus Arran Aromatics positions itself upon the quality dimension and is their differential advantage.

  The Business Planning ...

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