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Pure Organic Food and Juice Bar Case Solution

Essay by   •  April 12, 2017  •  Case Study  •  1,279 Words (6 Pages)  •  834 Views

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Introduction

Pure Organic Food and Juice Bar, established in May 2010 by Jacqueline Graham and Samuel Buob incorporated a business strategy armed “with the mission to offer exceptionally nutritious and delicious food while growing their business in a sustainable and ethical way” (Valente & Graham, 2012). The company was created on the following premises; the founders personal and professional interests and values for a healthy lifestyle, increased market awareness and demand for raw and organic cuisine, and a need to educate and transfer learning to a wider customer base on the benefits of healthy living. However, business ventures are fraught with internal and external forces that act for and against business strategy.

Problem

The company is posed with the challenge of adapting its business strategy to increase profitability in the low-margin restaurant industry without compromising its product offerings and sustainable business practices. To provide informed recommendation on possible approaches to address the problem, a thorough examination of the organic, raw, and vegan market opportunities and challenges, as well as the internal and external forces of the company, is required.

Market Opportunities

Organic and non-organic food, health effects are predominant in this century, as research has expounded on the nutritional constituents of both types of food. Research has shown that consumers of organic food possess fewer pesticides in their bodies, whilst the President’s Cancer Panel’s 2009 Annual Report “revealed that leukemia, prostate cancer, melanoma, and ovarian cancer were significantly more prevalent in farming families due to pesticide exposure” (as cited in Valente & Graham, 2012). Consumer awareness of these health factors and sustainable practices have accelerated the potential for Organic food products. This could be attributed to the market worth of over $2 billion and a growth rate estimated between 20 to 35 percent even during the global recession. Similarly, the vegan markets received a growing market base as consumers included vegan diets either solely or as part of their meal “for health and environmental reasons” (Valente & Graham, 2012). Following the trend closely was the raw food markets, this market has strong growth potentials as consumer needs are shifting towards less processed food. Industry players capitalized on the opportunity which resulted in the double- digit growth for businesses.

Market Threats

Despite the growth rate associated with the market, there were untapped consumers who held organic products in contempt because of the loopholes in regulatory systems in place. In a bid to increase industry growth and to the detriment of the industry, Barbara Robison expanded the list of non-organic ingredients that form part of organic food production. Although the Canadian government combated the expansion by implementing the organic product regulation in 2009, consumers remained skeptical. Consumer knowledge of vegan diet benefits in comparison to processed food was limited, hence a threat to market growth. Additionally, the costs of such diet required consumers to spend more than they would on processed meals. Finally, consumers lacked knowledge on how to make raw and vegan delicacies taste as good as organic and processed food.

Pure Organic Food and Juice Bar

Strengths and Opportunities

Located in Collingwood, a tourist site and just two hours away from Toronto, Pure organic food and juice bar has access to a consumer network that thrives on athletics and a healthy lifestyle. This provided a competitive advantage as the only pure organic and vegan restaurant in Collingwood. Another strength of the business is the technical expertise of the business owners. Apart from their personal commitment to healthy living, Graham is concerned with building her professional portfolio by pursuing a master’s degree in vegan and live food nutrition, whilst Buob received a raw chef certification thereby providing an avenue for diversification beyond food services to training. Similarly, embedding sustainable business practices beyond products offering to business brand aids supports a profitable and sustainable business in the long run. The growing market also provides an opportunity for pure organic to expand business activities.

Weaknesses and Threats

Examining internal weakness and external threats that could

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