Prepare for Growth, Scale for Impact

The Problem

The development of living standards and modernisation has resulted in consumers becoming increasingly more distant from the food chain and its significant importance . As the responsibility shifted from individual families keeping stock of their own food over to the industrialised food chain and supermarket distribution, a new food culture with little understanding of its importance has emerged . Such shift in responsibility has resulted in almost half of all food being wasted (1.2-2 billion tonnes). In Australia, the commercial sector combined with households waste 7.45 million tonnes of food annually. This would be enough to feed approximately 213,000 people for an entire lifetime. Yet, there are two million people in Australia who still rely on food relief.

Internal Constraints 

The company is faced with a general lack of resources, particularly on financial resources, as the company’s costs (not accounting for salaries) are at roughly 1.5-2 times their revenues.  Available tangible resources, such as the kitchen currently used for production, is also likely to become a constraint on growth as it limits production capacity to 2 batches per day (assuming one 8-hour shift), which means production is too small to reach profitability. What's more, the three product groups currently on offer seem to go in three different directions regarding tackling social issues: 

  • Rescued – rescuing surplus produce, 
  • Organic – supporting organic farming practices, and
  • Fairtrade – promoting fair treatment of farmers in the developing world. 

Together the three product ranges makes for an ambiguous brand, which is likely to prevent the actual social mission from reaching consumers’ ears.

Recommended Strategy 

We recommended a duo-phase strategy to combat  these issues.

Outcome

The efforts of our recommended strategy resulted in the company raising $27, 873. With the money raised the company invested in expanding it kitchens facilities and hiring a refugee to help with production.

Secondly, the website was designed to communicate a clear message that helps promote the brand. Furthermore, the site was upgraded to include an e-commerce section to allow for online orders.  

The Client 

The client was a young social enterprise who mission was to change the world by using recycled foods to create products. Based in Sydney, Australia the company delivers it’s products all around the country.