Operation Plan

            Some of the key aspects that the company will be involved in will be the preparation of the non-alcoholic beverage. The company will make use of the facility that it already has. The facility that Melinda Cates inherited from the uncle is enough to cater for the company’s expansion plans. Melinda Cates has also inherited various equipment that is required in the preparation of the non-alcoholic beverages. New equipment is also still required.  Example of the machines that are required when carrying out operations includes mixer machine, which mixes the ingredients, and the filling machine which is responsible for bottling the non-alcoholic beverage. Other equipment needed include a machine that will be responsible for labelling and capping the bottles.

The company also needs other equipment which includes vehicles, computers, and software for the management of the company. The vehicles will be used to make deliveries to the customers as well as take supplies from their suppliers for various ingredients used in the preparation of non-alcoholic beverages. The computer and graphic software will be important in computerizing the company’s data. They will be used in recording the expenses that the company accrues, maintain data on the available inventory and inform the users when the inventory is low, and there is need to do the necessary orders. Other expenses that the company is bound to accrue include the costs of buying the ingredients, taking insurance on the facility, obtaining office supplies and other utilities.

            The operations also require employees who have the skills required in ensuring that they produce quality products (Jacobs & Chase, 2010). As earlier mentioned, there is a volunteer who will work in the company who has previously worked in another non-alcoholic company until he reached his retirement. He will provide guidance to the team as well as mentor the employees who will be involved in the operations process of the business. Exclusive of the volunteer, there are other two foremen that the company needs as well as other employees and also the maintenance crew.

            The use of both old and new equipment that the company will use. These will reduce the efficiency of the company in comparison to when using all new equipment. The company has a competitive advantage derived from the provision of a unique nonalcoholic beverage that provides various benefits such as the provision of energy to the athletes.

Technology Plan

            For the company to be competitive, it needs to be technologically ahead of the other companies in the industries. This can be achieved by ensuring that the company makes use of the most recent technology in terms of the machine and the equipment used in the production process.

            The company also needs to make use of an accounting system which is a software that helps the company in tracking its revenues, expenses as well as the assets. This system would enable the management to be able to monitor the company and determine whether the company has the capability to meet the set budget within the required time period and make the necessary changes when needed. The system would also allow various employees to input data on various issues. The company would also need to obtain Wi-Fi. This would ensure that the information stored on the system is backed up on the cloud. There is also a need for all of the computers used by the employees to be connected through networking. This would allow the company to easily share within the employees.

            The Wi-Fi is also important as it would also be responsible of making the various communication with the suppliers. The company also needs to connect with the customers on various social media in order to promote their products. The company could also carry out online sales and could then deliver the products to the customers who have ordered on the company’s website. Technology also requires to maintain. This would require that the company employs an individual who would work on a part-time basis especially when needed.

Management Plan

            The first most important part of the management is the CEO. I will be the CEO having been entrusted with the position by Melinda Cates. I hold a master’s degree in Business Administration. I will hold this position for a period of 5 years. The other major member of the management team will be Melinda Cates. She will be responsible for managing the operations as she is the only one who knows the formula that will be used in the production of the non-alcoholic beverage. She is the master mixer.

The volunteer foreman is also very important to the management team as he will be responsible for managing the employees involved in the production process. His experience in Pepsi Co. for 35 years will be ideal in providing the employee’s directions on what to do. The other important aspect of the team is the consultant by the name of Mary Cates. She was previously working for the Federal Trade Commission. Her experience at the commission will enable her to provide guidance and advice regarding the rules and regulations that the company needs to ensure it maintains free and fair practices.

            The board of directors, on the other hand, will include Melinda Cates as she will be one of the shareholders through her contribution to the business. The other board members will consist of the shareholders that will provide the capital that the company will need for the expansion plan.

            The company will be led by the CEO. The other positions beneath the CEO include the vice president who will be in charge of operations and vice president in charge of sales. The vice president in charge of sales will have sales, marketing and communication teams that they will be in charge of. The other part of the team is the chief financial officer who will lead the accounting team (Jeston & Nelis, 2014). 

References

Jacobs, F. R., & Chase, R. (2010). Operations and supply chain management. McGraw-Hill/Irwin.

Jeston, J., & Nelis, J. (2014). Business process management. Routledge.

ASSIGNMENT 3 PART 2

Company Description

The best name that fits the company is Shirley Beverage Company, which will produce non-alcoholic brands. The name is effective since it allows the company to market itself because there has not been identified another firm that uses the name. The name stands out allowing customers to have an easy time identifying it. Any other firm suggesting that the Shirley cannot be affected by litigation has not registered the name. The beverages produced by Shirley constitute of ingredients that are natural and have been epitomized with high levels of skills and perfection.

               The organization’s mission statement is to enter into and to continuously operate in the competitive industry and stay in line with best corporate practices and embodies quality and taste for ultimate customer satisfaction. The mission statement is meant to allow the company to streamline its activities related to the production process. Also, it is meant to identify and satisfy clients’ preferences and make sure that the products are safe to consume. The company will make use of the mission to ensure that it builds the best environment for its customers through improved products (Sadler, 2003).

               Some of the trends in the non-alcoholic industry comprise of the fact that more firms have continued to enter the market. It is because it is more favorable than the alcoholic industry that is associated with high taxes. Also, most of the firms have continued to outsource their activities as they work towards satisfying the needs of a larger group. Projections prove than the industry will grow and advance in the future based on the number of companies that have been identified to enter the industry currently. Also, there has been the introduction of new technologies that have resulted in different changes that include different packaging of the products.

               The best strategic position that can be adopted by Shirley’s Beverage Company is the maintenance of continued advanced products. In other words, the best strategic position that can be initiated by the firm is ensuring that it improves its products over time by adding value to the customers (Foster, & Vasavada, 2003). The strategic position can be attained by taking the time to understand what the customers want. The market wishes to have new advanced products that have the ability to meet their requirements. It includes taking the time to change the packaging of the drinks that will make it possible for the clients to acquire a new taste. 

               The best distribution channel that should be initiated by the company is the direct transportation. It will allow the firm to do away with the high costs that are associated with warehousing (Freeman, 2010). Therefore, the firm will reach the market through online stores that will be meant to ease the process of buying and selling the goods. Moreover, it is essential for the company to distribute the finished goods to some stores to ensure that the clients have an easy time to reach the goods.

               Some of the risks that are faced by Shirley include financial risk. The risk refers to the inability to fund all the activities associated with production. It can be handled by having good relationships with the financial institutions that can lend them money. The other risk is property risk that can occur because of issues such as fire. It can be handled by insuring its property with the insurance companies. The other risk is the regulatory risk that consists of the various laws and policies that have been implemented to control the actions of the firms that operate in the non-alcoholic beverage industry. It can be handled by taking the time to research all the policies that should be followed to ensure that the company does not break any one of them.

Strengths

The identification of market segments that are best suited for the soft drinks.

The company operates in a large market that allows it to enjoy customers from different areas.

The employees are experienced since they have been working in the beverage industry for a long time enough to improve their skills.

The use of brand name that differentiates its products from the others.

Weaknesses

Interpersonal conflicts that exist among the employees resulting in lack of motivation to work together.

The lack of funds necessary to meet all the organizational needs.

The existence of competition in the food and beverage industry.

The lack of competency by some of the employees.

Opportunities

The existence of high demand for the soft drinks that will result in high revenue.

The existence of emerging markets that can be exploited to help the firm to grow and develop.

Also, with the continuous change of preferences and taste, the firm is assured that will provision of high-quality products; it can outdo some of the corporations.

The availability of improve technology that can be used to identify the best processes and techniques that will build on the organization’s improvement(Martinez, 2013).

Threats

The already existing firms that have been in a position to lead in the market becoming difficult to outdo them (Böhm, 2009).

The government has managed to control the prices that result in reduced profits.

The existence of barriers-to-entry makes it costly to enter the market.

The existence of political instability that may eliminate the stability of prices.

Market Research Strategies

The company will carry out applied research to acquire a knowhow of their market. It will involve research on the industry trends, the customer’s preferences to acquire a knowhow of their market (Malinauskas et al., 2007). The research will be carried out in all the customer segments through collecting pertinent primary information regarding the customers.

Analyzing Macro-environment-PEST Analysis

Political Analysis

              Shirley’s Beverage Company has benefited from the growth oriented policies of the US. This is particularly various policies relating to the stability of macroeconomics, the interest rates that are low, the conditions of the currency that are stable as well as the competitiveness internationally in the system of arranging taxes (Malinauskas et al., 2007). These have formed a very critical foundation on the development of Shirley’s Beverage Company. Shirley’s Beverage Companyhas gained in accordance to the global value chain transparency from working together with the government initiatives.

Economic Analysis

             In accordance to the biggest threat to the economy, Shirley’s Beverage Company can be a failure. If there is no success, the Shirley’s Beverage Companygrowth will be adversely affected. Shirley’s Beverage Company has been experiencing some contingent economic slowdowns since the recession and financial crisis of 2008-2009 (Malinauskas et al., 2007). Consequently, Shirley’s Beverage Company has established brand equity to take advantage of the emerging economies. Shirley’s Beverage Company development is not only influenced by the economy locally but also worldwide. If the currency weakened considerably, the lack of success would indicate sales that are minimal in theShirley’s Beverage Company (Buxton et al., 2012). However, the overall sales generated by Shirley’s Beverage Company have stabilized.

Analysis of the society

           Generally, in the society people are becoming more and more careful and sensitive to health and diet. Many people are also engaging themselves in exercising their bodies. Therefore demand various products of fitness, equipment, shoes and even exercise apparel.   

 The company has continued to observe labor and factory conditions to remain socially responsible. This is in order not to contravene the local and the international standards.

Technology Analysis

Shirley’s Beverage Company utilizes Informational Technology in the systems of marketing very efficiently. Shirley’s Beverage Company uses the systems of marketing in the economics of innovation, in subdividing and differentiating all business organizations (Buxton et al., 2012). Shirley’s Beverage Company status of leadership owes in a big way to the using of IT that is very valuable and exercising the application of any element of its products right during the growth to supply.

Situation analysis

Segmentation and target market analysis

Shirley’s Beverage Company market segmentation will take the population subdivision and specifically based on earnings. This implies that the markets that are targeted will be subdivided regarding earnings among them including; high earnings, middle earnings, low earnings and middle upper earnings.

Market Division

Market Targeted

High earnings

The markets of earnings that are high will majorly target on those customers that have huge amounts of earnings that are disposable. The customers at this level usually shop at retailers that are highly exclusive. Mainly, they base their decision of buying on surrounding purchase atmosphere and quality of the products.

Upper Middle earnings

The customers in this section are very sound regarding the economy, and they are also oriented to what is going to happen in future. They majorly focus on the enhancement of their life quality. They are easily drawn to brands that have high status and are also very sensitive to convenience.

Middle earnings

The customers in this section are workers who are average, and the reason for purchasing the products is usually to keep up the pace with the trends. They choose the products that are competitive against each other since they are very considerate to prices.

Lower earnings

In this level, the customers are usually more concerned with products whose prices are low.

Competitive analysis

       For Shirley’s Beverage Company rivalry that is competitive is the force that is key in the industry with the prospective of greatly curtailing growth the competition analysis for the company comprises the following

·         Rivalry that is competitive within the industry which is medium to high

·         The customers’ power of bargaining-low to medium

·         Threat of entrants that are new in the business which is low to medium

·         Suppliers power of bargaining which is low

·         Threat of goods that are substitutes which are low to medium

Customers’ power of bargaining

Factors that cause the bargaining of customers may include changing styles, pricing, product sponsorship and advertising. Through coming up with a strong brand image for the  energy drinks, Shirley’s Beverage Company can be able to maintain the power of the buyers to be low

Threat to entrants that are new

Resources of capital that are important are needed to create a brand that is new since investments that are major are required as capital (Buxton et al., 2012). This prevents the firms that are new from venturing into the business However there is threat form the e- commerce firms who will sell their energy drinks through the internet due to low barriers to entry in the business.

The suppliers’ power of bargaining

There should be no supplier who should hold the power of bargaining of which is very important.

Threat related to products that are substitute.

There are products that are fake and of which act as a major representation of a threat. However, there is a threat of products that are fake that Shirley’s Beverage Company may be exposed to. This could threaten the sales of the company’s energy drinks and potentially dilute the value of Shirley’s Beverage Company.

Operation Plan

            Some of the key aspects that the company will be involved in will be the preparation of the non-alcoholic beverage. The company will make use of the facility that it already has. The facility that Melinda Cates inherited from the uncle is enough to cater for the company’s expansion plans. Melinda Cates has also inherited various equipment that are required in the preparation of the non-alcoholic beverages. New equipment is also still required.  Example of the machines that are required when carrying out operations include mixer machine, which mixes the ingredients, and the filing machine which is responsible of bottling the non-alcoholic beverage. Other equipment needed include a machine that will be responsible for labelling and capping the bottles.

The company also needs other equipment which include vehicles, computers and software for the management of the company. The vehicles will be used to make deliveries to the customers as well as take supplies from their suppliers for various ingredients used in the preparation of non-alcoholic beverages. The computer and graphic software will be important in computerizing the company’s data. They will be used in recording the expenses that the company accrues, maintain data on the available inventory and informing the users when the inventory is low and there is need to do the necessary orders. Other expenses that the company is bound to accrue include the costs of buying the ingredients, taking insurance on the facility, obtaining office supplies and other utilities.

            The operations also require employees who have the skills required in ensuring that they produce quality products (Jacobs & Chase, 2010). As earlier mentioned, there is a volunteer who will work in the company who has previously worked in another non-alcoholic company until he reached his retirement. He will provide guidance to the team as well as mentor the employees who will be involved in the operations process of the business. Exclusive of the volunteer, there are other two foremen that the company needs as well as other employees and also the maintenance crew.

            The use of both old and new equipment that the company will use. These will reduce the efficiency of the company in comparison to when using all new equipment. The company has a competitive advantage derived from the provision of a unique non-alcoholic beverage that provides various benefits such as provision of energy to the athletes.

Technology Plan

            For the company to be competitive, it needs to be technologically ahead of the other companies in the industries. This can be achieved by ensuring that the company makes use of the most recent technology in terms of the machine and the equipment used in the production process.

            The company also needs to make use of an accounting system which is a software that helps the company in tracking its revenues, expenses as well as the assets. this system would enable the management to be able to monitor the company and determine whether the company has the capability to meet the set budget within the required time period and make the necessary changes when needed. The system would also allow various employees to input data on various issues. The company would also need to obtain Wi-Fi. This would ensure that the information stored on the system is backed up on the cloud. There is also a need for all of the computers used by the employees to be connected through networking. This would allow the company to easily share within the employees.

            The Wi-Fi is also important as it would also be responsible of making the various communication with the suppliers. The company also needs to connect with the customers on various social media in order to promote their products. The company could also carry out online sales and could then deliver the products to the customers who have ordered on the company’s website. Technology also requires to maintained. This would require that the company employs an individual who would work on a part-time basis especially when needed.

Management Plan

            The first most important part of the management is the CEO. I will be the CEO having been entrusted with the position by Melinda Cates. I hold a master’s degree in Business Administration. I will hold this position for a period of 5 years. The other major member of the management team will be Melinda Cates. She will be responsible of managing the operations as she is the only one who knows the formula that will be used in the production of the non-alcoholic beverage. She is the master mixer.

The volunteer foreman is also very important to the management team as he will be responsible for managing the employees involved in the production process. his experience in Pepsi Co. for 35 years will be ideal in providing the employees directions on what to do. The other important aspect of the team is the consultant by the name of Mary Cates. She was previously working for the Federal Trade Commission. Her experience at the commission will enable her to provide guidance and advice regarding the rules and regulations that the company needs to ensure it maintains free and fair practices.

            The board of directors on the other hand will include Melinda Cates as she will be one of the shareholders through her contribution into the business. The other board members will consist of the shareholders that will provide the capital that the company will need for the expansion plan.

            The company will be led by the CEO. The other positions beneath the CEO include the vice president who will be in charge of operations and vice president in charge of sales. The vice president in charge of sales will have a sales, marketing and communication teams that they will be in charge of. The other part of the team is the chief financial officer who will lead the accounting team (Jeston & Nelis, 2014). 

Company Commitment

            The company is committed in ensuring that it is a good corporate citizen to the community. The company will achieve this by providing jobs first to the people in the community. Giving the people from the local community the priority when giving them jobs. The company will contribute in giving employment opportunities to the unemployed in the community. the company is also committed in ensuring that the company treats its employees fairly. The employees will be paid fairly and that is by ensuring that the company takes into consideration on the rates in the industry. There is need to identify what other companies in the industry pay their employees and pay the company’s employees an almost similar amount. Taking into consideration that other companies have been in the industry for longer, the amount may not be as high. The employees will also receive fair benefits such as health care (Blackburn, 2007).

            As earlier discussed, Mary Cates is a consultant for the company. she has previously worked in Federal Trade Commission. As a result, she has a vast experience on the laws and regulations on the products as well as the running of the company. The company is therefore committed to ensuring that it follows all of the laws and regulations in the industry that the company operates in.

            The company is also committed in treating all of the employees fairly. The lesbian, gay, bisexual and transgender individuals will be given equal opportunity in comparison to other people. The company is also committed to ensuring the diversity of the workforce. This will be by ensuring that all the minority are included in the workforce.

Social and Environmental Goal

            The company is committed in ensuring that it leaves a good social and environmental impact. The social aspect will be achieved by ensuring that the company meets all the legal obligations that the company. this include legal obligations on the environment. The company will dispose of its waste as expected through the law. The company will make sure that the disposal does not affect the environment as well as affecting the people around the neighboring community. The company will also make sure that it is more sustainable by making use of sustainable sources of energy.

The company is also committed on ensuring that the emission that they produce have no adverse effect on the environment as well as on the health of the people in the neighboring community. the company is bound to have some effluent. Taking this into consideration of this emissions, the company will take an effort to have the emissions treated as well as getting permission from the relevant institutions regarding the discharge of water into the sewer system (Blackburn, 2007).

Environmental Impact

            The company is bound to have some impact on the environment. The main ingredient in the preparation of non-alcoholic beverage is water. The company makes use of a lot of water both in preparation of the drinks as well as in the cleaning of the bottles as well as the facility. This can contribute to the company consuming a huge amount of the water from the local community water utility provider. It is important that the company does not use up the water for the rest of the community. the rate at which the groundwater is being consumed should also be taken into consideration.

            Taking into consideration that many people prefer to go bottles, the company will make use of plastic bottles as packaging for the company’s beverage. The plastic bottles can be considered to be of poor environmental impact. There are risks that the plastic bottles will end up in dumping site instead of recycling them. This will then lead to an environmental impact as the company has little control on what the customers can do with plastic bottles. There is therefore a need to invest in the manufacture and use of renewable plastic bottles. The company also needs to encourage their customers to recycle the bottles. The company can give incentives for a customer to recycle (Blackburn, 2007).

Health Impact

            There is some potential of negative effects of the non-alcoholic energy drinks. The energy drinks contain stimulants and additives. There are some ingredients that are included which include guarana and taurine that have not been approved by the FDA. The ingredients are yet to be listed as safe food products.

            There is also the fact that energy drinks contribute to the increase in blood pressure of the users. The blood pressure remains elevated for a period of hours after taking the drink. The drinks have contributed to people attending the emergency room after taking the drinks. The drinks are also promoted in a way that adolescents are encouraged to rapidly and excessively consume the energy drink. There are many youths who have resulted to being admitted as a result (Howard, 2017).

References

Böhm, A. (2009). The SWOT Analysis. München: GRIN Verlag.

Buxton, C., & Hagan, J. E. (2012). A survey of energy drinks consumption practices among student-athletes in Ghana: lessons for developing health education intervention programmes. Journal of the international society of sports nutrition, 9(1), 9.

Foster, T. & Vasavada, P. (2003). Beverage quality and safety. Boca Raton: CRC Press.

Freeman, R. (2010). Strategic management : a stakeholder approach. Cambridge: Cambridge University Press.

Malinauskas, B. M., Aeby, V. G., Overton, R. F., Carpenter-Aeby, T., & Barber-Heidal, K. (2007). A survey of energy drink consumption patterns among college students. Nutrition journal, 6(1), 35.

Martinez, M. (2013). Open innovation in the food and beverage industry. Oxford: Woodhead Publishing.

 Jacobs, F. R., & Chase, R. (2010). Operations and supply chain management. McGraw-Hill/Irwin.

Jeston, J., & Nelis, J. (2014). Business process management. Routledge. 

Sadler, P. (2003). Strategic management. Sterling, VA: Kogan Page.

 Blackburn, W. R. (2007). The sustainability handbook: The complete management guide to achieving social, economic, and environmental responsibility. Environmental Law Institute.

Howard, J., (2017). What that energy drink can do to your body. Retrieved from

http://edition.cnn.com/2017/04/26/health/energy-drinks-health-concerns-explainer/index.html on August 23, 2017.

THESE ARE THE 2 ASSIGNMENTS NEEDED TO DO ASSIGNMENT 5 PLUS THE WORKSHEETS THAT I HAVE