Operation, Technology, and Management Plan for On Fire Energy Drink

This plan outlines the operational, technological, and management aspects of On Fire Energy Drink, including its production process, equipment, labor force utilization, software and hardware needs, personnel needs, and ethical and social responsibility plan. It also includes financial projections and strategies to mitigate negative impacts on the environment and health issues.

Assignment 3: Operation, Technology, and Management Plan (with Financials)
Operational Plan:
KEY ASPECTS OF OPERATIONS (POSSIBILITIES INCLUDE FACILITIES,
PRODUCTION PROCESS, EQUIPMENT, LABOR FORCE UTILIZATION):
The key aspects of the operations of On Fire Energy Drink would consist of the
following:
Facilities:
The facilities would On Fire Energy Drink would be divided into three main divisions
namely, the administrative division, the manufacturing division and the marketing division.
The administrative division would house the finance department, HR department,
administrative department, legal department, corporate governance department and the
technology department. The manufacturing division would house the supply chain management
department, manufacturing department and the warehouse department. The marketing division
would oversee the marketing and sales department, the outlet management department and the
customer care and ecommerce department (Rahim & Raman, 2015). The marketing and sales
department would mainly concentrate on the channel sales of On Fire Energy Drink while the
outlet management department would deal with the individual customers who would visit the
outlets of the company to purchase the drinks. The customer care and ecommerce department
would accept online orders and attend to the customers’ queries over the phone and email.
Production process:
The production process of On Fire Energy Drink would commence under the leadership
of the manufacturing division. The production process would start with the supply chain

department procuring the raw materials like raw fruits cultivated in organic methods from the
suppliers, environment friendly packages manufactured from recycled paper, recycled bottles
and straws. These inventories would then be passed to the warehouse department which would
then pass them into the manufacturing facilities (Bilek & Bayram, 2015). The manufacturing
facilities would use state of art equipment which would manufacture superior quality fruit drink
which would then pass to the bottling machine. The bottling machine would fill the bottles and
pass them to the capping machine. The capping machine would insert caps on the bottles which
would then be passed to the labelling machine. The labelling machine would insert labels on the
bottles which would then to finished products ready to be marketed in the American market after
packaging. The entire process should take place under the supervision of the quality control
department which would be conducted by the administrative division (red arrow) (Kregiel,
2015).

Procurement department
procures stock of raw
materials
Procurement
department passes the
inventory to warehouse
department
Warehouse
department passes
the inventory to the
manufacturing
department
Juice manufacturing plant
manufactures juice
Juice passes to bottling
machine to fill bottle
Bottled juice passes to capping machine
which caps bottlesLabelling machine labels
the bottles
Bottles are packaged for sale
Quality control
(administrative
division)
Figure 1. Production process of On Fire Energy Drink
(Source: Author)
Equipment:
The equipment which On Fire Energy Drink would be advanced which would use less
fuel but give more output. The equipment used in the production process would consume less
fuel and be capable of mass producing juice. The equipment would utilise maximum amount of

raw materials to produce fruit juice and package bottles, thus give out minimum wastes from the
production process. This means that equipment would enable the company to save costs, reduce
wastage of materials and reduce wastes (Procentese et al., 2018).
Labour force utilization:
On Fire Energy Drink would require skilled labour to produce and market fruit drinks.
The company would recruit labours to operate machine and warehouse. The company would hire
both back office and front office employees. The front office employees to mainly operate in the
marketing departments while the back office employees would look after the administrative
operations. The company would provide training to the employees both after induction and
during the commencement of their duties as pre the business requirements (Haddock-Millar,
Sanyal & Müller-Camen, 2016).
COST AND TIME EFFICIENCIES:
On Fire Energy Drink should operate in ways which would reduce its costs and boost its
efficiency. The management of the company should streamline the operations of the three
divisions in ways which would boost the efficiency and reduce costs. For example, as far as the
manufacturing division is concerned, the company should ensure that procurement department
procures superior quality fresh fruits grown organically. Similarly, the warehouse department
should ensure that the inventory procured is stored in appropriate ways to ensure that perishable
raw materials like fruits are not spoilt to the feasible extent. This would enable the company to
utilise the raw materials optimally and reduce wastage. This would lead to production of bulk
finished goods and enable the company to market high amount of fruit juice drink (finished
goods) in the American, thus generate high revenue (Attaran, 2017). In other, the company by

reducing wastage of raw materials would be able to transform the costs of production of finished
goods into revenue within less time, thus achieving efficiency
COMPETITIVE ADVANTAGES:
The company namely, On Fire Energy Drink would have several competitive advantages
over its competitors like PepsiCo. First of all, the company would source organically cultivated
fruits which would ensure that the fruit drink products are free from any chemicals, thus
appealing to the health conscious customers. The second competitive advantage of the products
of the company would be that they would have no added sugar, thus ensuring that the consumers
do not ingest extra calories. Thirdly, the company would establish a wide distribution network
consisting of both mobile vans owned by it and third party distribution channels. This would
enable the company to gain deep market penetration in both cities and small towns. These deeper
reach to customers would enable the company to earn higher revenue compared to international
companies at local levels.
PROBLEMS ADDRESSED AND OVERCOME:
On Fire Energy Drink would face certain problems which it has to overcome by using
appropriate strategies. The first problem would be scarcity of financial resources in the initial
phase. The company would overcome this problem of limited financial resources by ensuring
that it procures and stores high quality raw materials (like fruits) which it would channelize into
its manufacturing facilities. This would enable the company to ensure that it is able to utilise
maximum possible inventory towards production of high quality fruit drink. This would also
ensure that the company is able to market quality fruit drink before the customers, thus ensuring
customer satisfaction (Sternberg & Baruffaldi, 2018). This would enable the company to earn a

loyal base of customers which provide the company repeat business, thus generating high
amount of revenue.
The second challenge which the new company would face would be the difficulty in
sourcing trained and experienced employees as well as retaining them. This would be because
the company would be new in the market and would have to compete with established players
like Coca Cola to attract talents. The company in order to counteract this challenge should train
the employees which would boost their efficiency. This means that the company would be use
less amount of manpower to execute more work. The company should provide legitimate
compensation to employees and form policies keeping the latter into consideration. These
strategies to great extent would enable On Fire Energy Drink to reduce the challenge of talent
acquisition in the initial phase (Cohen & Munoz, 2016).
Technology plan:
SOFTWARE NEEDS:
On Fire Energy Drink should use software of different types to manage its inter divisional
operations. For example, in order to manage the employees, the company should acquire
advanced HR software capable of catering several business requirements simultaneously. For
example, the software would enable the HR department post advertisements of vacancies,
receive applications, maintain employee details and record resignations. Similarly, the
departmental heads would be able to feed the HR portal with details like employee attendance
and employee leaves. The accounts department would be able to process salary payments and
upload salary slips of employees. Similarly, the software used in the accounts departments would
enable acquisition of data regarding all the financial information, record them in appropriate

financial statements and report them to appropriate stakeholders like management and investors
to facilitate decision making. On Fire Energy Drink should in addition to advanced software for
in-house use, should establish a strong cloud network which would enable it to acquire, manage
and share a vast amount of market information on real time basis (Rose et al., 2016). The
software packages acquired by the company should be protected by antivirus and firewall to
minimise occurrences of virus attacks.
HARDWARE NEEDS:
On Fire Energy Drink should acquire computer hardware from reputed manufacturers
like Dell Inc. This would ensure that the company is able to utilise the hardware for longer span
of time. This would lower maintenance and disposal costs, thus boosting the net profits.
TELECOMMUNICATIONS NEEDS:
On Fire Energy Drink should establish a strong telecommunication infrastructure to cater
to the needs of the company. The telecommunication structure of the company should be aligned
to the business needs. The entire structure should be subjected to the supervision of the top
management and protected by the passwords (Mahadevan & Janardhanan, 2017).
PERSONNEL NEEDS (SPECIFY IN-HOUSE OR OUTSOURCED):
On Fire Energy Drink should maintain in-house staff in the initial phase. This is because
the in-house staff of the company would be more responsible towards the operations and would
contribute towards its growth. Thus, it can be justified on this ground that On Fire Energy Drink
should adopt the strategy of in-house strategy of staff management in the initial phase.

Management and organisation:
KEY MANAGEMENT AND EMPLOYEES:
The key management of On Fire Energy Drink would commence under the stewardship
of the CEO. The CEO would have the board of director and CFO to advise him. The board of
directors would have a departmental heads reporting to it.
BOARD MEMBERS AND ADVISORS:
The board of directors would be the main advisors to the CEO. They would supervise and
take decisions regarding the business operations. They would also be responsible for the putting
up significant business matters before the CEO for approval.
MANAGEMENT STRUCTURE AN STYLE:
The management structure of On Fire Energy Drink would have CEO at its helm
followed by the board of directors who advise him. The CFO plays the pivotal role in advising
the CEO in financial matter. The departmental managers directly report to the board of directors.
The assistant managers report to the managers. The lowest rung of employees in the company
consist of the executive level employees (Collings, Wood & Szamosi, 2018).
An ethical and social responsibility plan:
Corporate Citizenship:
On Fire Energy Drink should operate in ways which would enable it to reduce
environmental impacts of its operations. This would enable the company to cement its position in
the United States as a corporate citizen.

Describe the ways in which your company is committed to being a good corporate citizen
Hints: Consider the following areas:
Creating jobs
Following the laws of every jurisdiction in which your company operates
Fair and honest treatment of employees
Non-discrimination of employees and increasing diversity of your work force
Hints: If your company is designed as a social venture—in which you have a primary
purpose of achieving a social or environmental goal—describe what that goal is and what
aspects of your company are designed to reach that goal. Provide a rationale for why you
have or why you have not chosen this to be a social venture.
On Fire Energy Drink should operate in ways to establish itself as a responsible corporate
citizen. The company should create employment opportunities in the United States and
contribute towards economic development of the local population. The company should follow
the laws of every country and state operates. The company should treat its employees fairly and
honestly. The managers should not discriminate between employees on the grounds on gender,
social background or any other ground of distinction. On Fire Energy Drink should establish
environmental goals which it would achieve and form strategies to achieve them.
Environment Protection
Discuss how your company’s activities will affect the environment and identify the steps
you will take to mitigate any negative impacts.
It can be pointed out that the operations of On Fire Energy Drink would definitely impact
the environment since it would be a manufacturing company. The manufacturing plants of the
company would use large amount of power, thus giving out exhaust gases. This would leave

impact on the environment. Similarly, the consumption of electricity would also use energy and
release exhaust gases. Thus, it is evident that the day to day operations of the company would
leave carbon footprint which would have negative impact on the environment. The company
should take steps to reduce its negative impacts on the environment (Herrera, 2015). The first
step which On Fire Energy Drink should take would be installation of lightings in ways which
would enable the latter to illuminate maximum floor area. This step would enable the company
to reduce its electricity consumption, thus reducing its carbon footprint. The second step which
the company should take is to install solar panels on the roof of the office and factory building
which would enable it to reduce its electricity consumption. The third step which the company
should take would be installing modern bottling plants and latest versions of the hardware which
would consume less energy, thus having less negative impact on the environment. The fourth
step company should use would be using recycled packages. The fifth step which the company
would adopt would be reusing water by recycling it. These steps would enable the company to
reduce its environmental impacts (Wei et al., 2017).
Health Issues:
Determine any health issues / claims related to the product you are making, whether
negative or positive.
The products of On Fire Energy Drink namely packaged fruit juices would have positive
impacts on the health of the consumers. This is because the products would be free of chemicals
and added sugars. However, it is advisable that consumers under medical restrictions on sugar
consumption should not consume the products as they would increase their blood sugar levels,
thus impacting their health negatively (Imamura et al., 2015).

Suggest the strategy your company will use to mitigate any negative issues, and to ensure
any positive claims are true.
On Fire Energy Drink would introduce a zero sugar variants of fruit drinks. This would
enable the company reduce the negative impacts its products would likely have on patients
suffering from diabetes.
Section 2: Business Plan Financials
Attached

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