The financial plan of universal organic food services

Introduction


Food that has been grown without the use of artificial fertilizers, conventional pesticides, radiation, dye, or human wastes is considered organic. It suggests that using growth hormones and refraining from using antibiotics during animal rearing (Allen, 2006 p. 11).

Universal Organic Food Services Financial Plan


The goal of the Universal Organic Food Services Financial Plan is to make sure that they offer a nutritious, reasonably priced, and high-quality food service plan to the global market. The longer a person lives, the more nutritious natural foods are. The Company's goal is to make nutritious food accessible to all people at reasonable prices while also taking into account their unique health requirements.

Expansion to New Zealand


The business wants to start by introducing its goods and services to international markets starting with New Zealand. However, there are financial and economic forces that affect the business in New Zealand like the high level of unemployment. The company will ensure that it employs as many people as possible since it will expand its business in the country. It will also provide it invests on irrigation to avoid low agriculture production and spending too much money on drought (Allen, 2006). The company will make sure that the government is stable by making some fundamental policy changes. It should also maintain predictability in monetary, fiscal and political policies. The taxation and interest rate should be cut to a reasonable figure to reduce wage pressures.

Pricing Factors


The pricing of service and product is one of the most significant decisions an organization can take. The prices put in place are key determinants of the revenue the company will make. However, there are specific factors that a group should consider that affect the pricing decisions (Ledgerwood, 2013). The cost set which is determinants includes the marketing strategy, the marketing conditions or competition, product types, and contribution margins. Sales income is supposed to be obviously exceeding the cost that is running your business. It is advisable to compute your sales income based on the designed pricing structure and compute the contribution margin in percentage. This will enable you to evaluate whether the pricing strategy adopted is sufficient to make a profit and if not, you need to lower the cost of operating the business or increase the sales. There are also four pricing challenges that you should try to avoid, the underselling, following the competition on the price, reducing price and ensuring service delivery remains the same. The pricing policy must also incorporate the VAT, competitor's price and perishability of the goods and services.

Handling Foreign Currency Challenges


A company should handle challenges of foreign currency from the US to New Zealand by first accepting the unfeasibility to maintain a fixed exchange rate, an independent monetary policy, and an open capital account. Keeping a free capital account is preferable as there is growth from trade in Capital (Nestle, 2013). The Corporation should ensure long-term financing of the business project and the infrastructure based on the estimated cash flow of the project rather than the statement of financial position of the project donor. There are four measures a company can take to boost the accessibility and continuity of financing that is, strengthening the statement of financial position, an extension of the debt, diversifying funding sources, and intensification of the liquidity position.


References


Allen L, (2006). Guidelines on food fortification with Micronutrients. Geneva, Switzerland: World Health Organisation.


Ledgerwood, J., Earne, J., Nelson, C., & World Bank. (2013). The new microfinance handbook: A financial market system perspective. Washington, DC: World Bank.


Nestle, M. (2013). Food politics: How the food industry influences nutrition and health. Berkeley: University of California Press.

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