Company Description and Apple Investment

This article provides a detailed description of Spiritual Refreshments, trends in the non-alcoholic beverage industry, strategic position, distribution, risks, SWOT analysis, and investment plan. It also discusses how the dynamic capabilities approach can help a multinational organization retain competitive advantage in the face of disruptive change and stock selection used in the investment process. The article also includes information about the financial positioning and performance of Apple Inc.

Running Head: COMPANY DESCRIPTION AND INVESTMENT 1
Company Description and Apple Investment
Student’s Name
Institutional Affiliation

COMPANY DESCRIPTION AND INVESTMENT 2
Company Description and Apple Investment
Client’s Company Understanding
The Client’s Company is Spiritual Refreshments. The beverage made by the company is
a spiritual refreshment and everyone who takes is refreshed and revitalized. The drink is made
from natural herbs, vegetables and fruits providing a refreshing experience. Each bottle has a
scripture and spiritual quote. With the hectic, fast-paced nature of everyday life, the spiritual
connection to food has been lost along the way. The company acknowledges the need for the
human body to have the highest quality water, food and air and that is why it will create products
that will cleanse the body and make the person feel better.
Their mission is to inspire individuals physically and spiritually with every sip. They are
committed to providing high quality products that enhance enjoyment and revitalize and refresh
the body. Spiritual Refreshments provides a channel for spiritual nourishment by offering a
beverage that feeds the body, soul, mind and social well-being.
Trends in the Non-Alcoholic Beverage Industry
The non-alcoholic beverage industry is a highly dynamic and competitive segment (Kim
& Fry, 2015). In recent times, innovation and the focus on health and wellness of consumers
have driven growth and evolving competition. Sub-categories in the industry including juices,
energy drinks, carbonated soft drinks, bottled and enhanced water, sports drinks and RTD coffee
and tea, have evolved due to consumers’ growing demand for healthier businesses and the
companies’ ability to deliver compelling end products with innovative packaging and unique
flavors. The beverage retail landscape has evolved tremendously over the past few years.
Categories that appeal to the niche wellness and health-oriented consumer are being introduced
into conventional channels as retailers make efforts to replace the declining carbonated soft

COMPANY DESCRIPTION AND INVESTMENT 3
drinks with healthier alternatives (Hitt, Duane & Hoskisson, 2012). Across cultures and
generations, increasing concerns about the potential impacts of diet on well-being and health
have fueled the growth of demand for fresh packaged foods, trends that are changing perimeters
of center-store categories as well as retail stores.
Strategic Position
Advertising and marketing help them create a strategic position and get their message to
our potential customers. The company use advertising to differentiate ourselves instead of
competing head-to-head with established companies in the non-alcoholic beverages industry.
Here, customer perception factors come into play as the cheaper, better and faster approach.
Factors that set the company apart from their competitors include more convenience, high quality
and excellent customer service. However, a lot of money will be invested in advertising and
marketing in order for the customers to realize the additional features offered. In the short run,
the company will be able to build a committed and loyal customer base that values the difference
between the company and its competitors (Abrams, 2003).
Distribution
Boosting their beverage sales needs a unique marketing and sales plan that entails selling
to distributors and the end consumer. The products are distributed through retailers (Olson &
Lopez, 2009). Retailers have dominated the consumer sector and thus they represent a powerful,
demanding channel to distribute products. We will embark on researching the channel well in
order to identify the retailer’s key challenges, their ability to get customers to buy at their stores
and return for more purchases. The pressure on retailers creates opportunity for suppliers such as
Spiritual Refreshments to build strategic partnerships that develop a competitive advantage for
the parties involved (Dent, 2011).

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Risks
The company faces competitive risks as the beverage industry is susceptible to dramatic
changes in the competitive situation. New competitors enter the market as established
competitors reposition their products to compete effectively hence affecting the company’s
financial position and operating results. To overcome this issue, the company must be able to
innovate, to develop new products and improve the effectiveness of product marketing and
packaging efforts. The second type of risk relates to product safety and meeting quality, health,
safety and environmental standards in the company’s operations. New regulations aimed at
tightening controls on the food industry have increased the cost of doing business. The impact of
such regulations is felt mostly by small businesses (Food & Nutrition Board, Institute of
Medicine & Food Forum, 2001). Another risk relates to capitalization since Spiritual
Refreshments is a new company and they may under-estimate costs or over-estimate income
hence increasing the chances of running out of money. To avoid this risk, it is crucial to budget
realistically and ensure there is enough funding to cover the costs of operation. One way to do
this is to find investors who can provide additional funds as the business grows (Abrams, 2003).
SWOT Analysis
Weaknesses
The main weakness lies in the fact that it will take a long time to establish the business from
scratch with new plans and ideas. This creates the need to employ a well-trained team that has
immense knowledge and expertise in setting up businesses. As such, a significant amount of time
and money will be required to accomplish this. Besides that, the product is venturing into an
already existing market. There is a number of stores offering similar products. By serving
healthy product options, the business is likely to stand out from the rest.

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Threats
The company may face high barriers of entry since its brand is not well-known. As such, it may
lose potential customers to well-established brands. Besides that, the company faces many
competitors that offer cleanses, vegetable and fruit juices and smoothies. Weather changes may
also affect the prices of cool drinks especially during winter. This makes it imperative to think of
alternatives such as adding warm juice to the menu.
Income Statement for the Company
Opportunities

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The company has many opportunities in its business. It can develop a successful brand
and continue to pursue and exploit it. The company also has the opportunity to advertise its
products to increase popularity. The market’s health-consciousness attitude is changing as more
consumers are looking for healthier food products (Kim & Fry, 2015). Compared to all other
beverages in the market including sodas, drinks made from natural herbs, vegetables and fruits
will be healthier for consumers. 100 percent natural juice is a smart addition to a well-balanced
diet, providing a rich source of vitamins and minerals for the body to thrive both physically and
spiritually.
Strengths
The company offers a food product that is rich in nutrients that sustain and energize the body. By
using fresh raw vegetables and fruits, the company can market its beverage as the best product
for optimal health, given its vital vitamins, phyto-nutrients and minerals that enhance positive
physical and spiritual health and vibrancy. The product will be affordable since it will be
produced on site by well-trained chefs. Affordable costs will allow every potential customer to
try the product regardless of their age or income. The company will only recruit highly
functioning, friendly and confident employees. It will conduct the interviews ourselves to ensure
that we find the right people to represent our business. The employees are exposed to a thorough
training program to enhance their skills in producing, packaging and serving the product. Also,
the company strive to achieve the highest quality in order to develop customer loyalty.
Why Do Spiritual Refreshments Need an investment Plan?
a. Facilitation of Key Aspects of Operations
The following equipment can be considered of vital importance to the business’s operations;
printers and computers for label making, bottling and capping machinery, extraction and mixing

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machine systems, refrigeration equipment, packaging materials and systems, distribution vans
and cleaning/waste management systems. The best approach is to buy some of the equipment
especially those of production level significance. Distribution vans and refrigeration equipment
can be rented as the company begins but bought slowly as it expands.
b. Cost and Time Efficiencies
Manual processing of beverages can be a bit tedious and time wasting; therefore, the use of
automated equipment for processing will work in favor of both cutting down the cost of
production and creating time efficiencies. This process will also reduce the amount of labor
required in production hence reducing the operational cost. With the present-day computerized
production systems, optimization is very efficient. Cleaning and maintenance are also crucial to
maintain the company’s equipment in good shape.
c. Competitive Advantages Challenges
The products manufactured by the company are distinguishable, as the main competition is from
inorganic beverages companies. Therefore, there is the competitive advantage of product
differentiation, organic compared to inorganic beverages. Also, there is noted consumer
preference for organic beverages which are healthier thus giving NAB an upper hand over its
which is more affordable to the consumer. As a re to requirement advantage in starting of the
company, the initial cost of starting the company is greatly reduced as there already some
equipments and machinery in place. The loan of $60,000 taken by the company when boosted by
the money from interested investors is capable for at least setting up the main branch, before
further expansion. However, quality control assessment will be done regularly to maintain the
competitive advantages.
d. Problems Addressed and Overcome

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Cost related problems can be solved by the creation of optimized production system. In order to
grow from a small batch company to a large one, stable supply, production and distribution
systems will be put in place. The suppliers to the company include organic products farmers,
who should be signed up with the company as it starts, their number will be increased as the
company expands. The turnaround time for production should be a maximum of four days once a
distribution order sets in. The use of company vans for distribution purposes is the most
preferred choice, but initially these can be rented and labeled with the company logo.
e. Technology Plan
Software Needs
One of the main competitive advantages that companies have nowadays is the use of real time
automatic production methods (Hagedoorn, 1994). The company’s main workflow processes are
also made more efficient with computerization as a consequence of high and proper organization
of data plus information. A database system will be required for the data entry, storage,
processing and updating of the NAB’s data pertaining to employees, inventory, stock checking,
calculations involving cash flows and supply/distribution. Other needs include internet
connectivity, a company website for advertising online and linking all the systems in different
branches.
Hardware Needs
Computer sets, including screens, system units, memory devices and internet adapter/cables are
required to implement the above. Other devices needed include printers and scanners, for the
processing of hard copy documents these can be read further on Culler’s (1999) article.
Telecommunication Needs

COMPANY DESCRIPTION AND INVESTMENT 9
Mobile telephony is to be instituted in the company, as well as fixed/landline for the offices
mostly. There should be fixed company lines and addresses for telegram, telex and post office.
This is to ensure proper flow of information in the company and its environs, plus the external
world for globalization purposes.
Spiritual Refreshments Investing in Apple company
Regarding how the dynamic capabilities approach can help a multinational organization retain
competitive advantage in the face of disruptive change, there are several points to consider when
using this approach. Since the dynamic capabilities approach encourages the development of
functional, operational, organizational skills and management capabilities, we can deduce that
many components can and should be considered to remain profitable (Teece, Pisano, Shuen,
1997). Nonetheless, it is the opinion of this writer that one of the best methods of remaining
profitable is to create a sustainable competitive advantage.
Stock selection used in the investment process
Stock-Picking by Investopedia
Many financial specialists new to the stock-picking scene trust that there is some faultless
technique that, once pursued, will ensure achievement while in the process of conducting an
investment. In the stock-picking technique, there is no foolproof defines strategy for picking
stock which implies one is left with a diverse options of growing their wealth through
investment. The company should take Stock-picking as a craftsmanship instead of a science that
is defined by a particular set of operations.
The rationale of opting to take Stock picking strategy
On the off chance that the organization becomes a decent stock-picker, it can build their own
capital base exponentially. The objective of breaking down an organization's basics is to locate a

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stock's inborn esteem, a term meaning what he company trust a stock is extremely worth – rather
than the incentive at which it is being exchanged in the marketplace. Although there are various
techniques for finding the inherent esteem, the preface behind every one of the methodologies is
the equivalent: An organization merits the total of its limited financial streams. In plain English,
this implies that an organization merits the majority of its future benefits included. These future
benefits must be limited to represent the time estimation of the capital. The thinking behind
natural esteem paralleling future benefits bodes well in the event that the company considers how
a business offers some incentive for its stakeholders. On the off chance that the company have a
private venture, it can remove something from the organization just on the off chance that it has
something left over after they pay for provisions and pay rates, reinvest in new gear and so on.
All this is triggered by the fact that a business is about benefits, plain old income short costs
which is the premise of inherent esteem.
Financial Positioning and performance of Apple
Innovation and the protection of such innovation helps a company remain in the forefront of the
market regardless of whether they are an entering business or an existing organization. Consider
the example of Apple Inc. as aired on the Emmy-awarded show Shark Tank. Al Baker stated that
the company closed 2013 with $154,000 in sales (Levitt, 2016). After an appearance on the
Shark Tank show and making a deal with Daymond John, the company enjoyed $3M in sales to
date which is a stark difference from 2013. Aside from the media exposure and through his
patent, Baker was able to secure a sustainable competitive advantage which has left Baker
predicting to reach over $100M is sales in a few years; Baker has made deals with Walmart,
Costco, and several other big names companies. However, creating a sustainable competitive
advantage, though an excellent strategy, functions best when the company has in addition to

COMPANY DESCRIPTION AND INVESTMENT 11
creating a sustainable competitive advantage creates a loyal customer base, an effective method
of distributing the product, excellent relations with vendors, and provides exceptional customer
service. While Bubba’s-Q is not a multinational organization, the principle remains true.
Apple, a multinational organization, owns over 100 individual trademarks (Apple, 2016), which
allowed it to reach this far. When the company exited the global recession, Apple experienced
growth in its stock value. Apple’s innovation and trademarks was a reason why it remained
profitable. Therefore, creating a sustainable competitive advantage is an excellent strategy even
in disruptive change, however business leaders should not forsake the external factors as
proposed by Porter’s five forces (Porter, 1979). It is important for companies to consider
different variables.
Currently, Apple offers many new innovative designs, also capitalizing on innovation and
patents. There was a point when the general consensus was that Samsung sought to imitate
Apple, but now sentiments have switched.
Stock Analysis

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Teece, Pisano, and Shuen (1997) examines the dominant approaches – competitive forces,
strategic conflict, resource-based perspective – and introduces the dynamic capabilities approach.
Each approach, in this writer’s view, has its merit; that is, each approach should be equally
considered as they are complementary. But the goal should not be forgotten: company need to
remain profitable.

COMPANY DESCRIPTION AND INVESTMENT 13
Cost advantage strategy has worked well for Apple because the company is well known
worldwide. The company enjoys a huge cost of business arrangement (Reimann et al., 2010).
Raw material cost, development and research cost, employment cost and transportation costs
occupy a great portion of Apple’s competitive power. The company pays concentration to the
power of cost and applies measures to minimize the costs (Safko, 2010).
Forecast

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Cost leadership in Apple Company is facilitated by the incorporation of several strategic chains
management such as customer satisfaction chain. Moreover, the company implements strategies
that are growth centered for assisting it in the realization of profit-cost leadership (Shafer et al.,
2005). The company takes full control of all the strategies that help in improving the competitive
advantage. If a company has control over the price of products, it can set the price for its profit
gain. Apple Company has benefited a lot from cost leadership strategy. Although most of the
products are highly priced, customers purchase them more because they have a trust with the
company (Srivannaboon & Milosevic, 2006). Competitive advantage is very critical for the
implementation of cost leadership strategy.
Financial Ratios for Apple Inc

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Apple originally outperformed $900 billion in market an incentive back on November 8,
2017. Over these most recent 9 months, Apple's stock cost has risen 18 percent, reasonably in
accordance with the Nasdaq-100 record, however far beating both the S&P 500 and Dow. While
that is a decent walk starting with one point of reference then onto the next for Apple, its stock
execution has been overshadowed by the shocking execution by any semblance of Netflix,
Amazon, and even Microsoft. In this equivalent day and age, Amazon has move more than 3
showcase top turning points ($600B, $700B, $800B… and about $900B), while Microsoft has
toppled 2 breakthroughs ($700B, $800B) and Netflix crossed the $100 billion development.
Apple revealed the money related outcomes for its final quarter of 2018 on 1 November.
It was the best September quarter regularly, as indicated by the organization. Apple's CFO Luca
Maestri stated: "We set September quarter income records for iPhone and Wearables and

COMPANY DESCRIPTION AND INVESTMENT 16
unequaled quarterly records for Services and Mac." Quarterly income was $62.9 billion, up 20
percent contrasted with the year-prior quarter. Apple anticipated income between $60 billion and
$62 billion, so it beat that objective.
Business investments techniques are basic for the financial achievement of any
organization. The utilization of business procedures impacts business execution by advancing
business sector advancement and benefit boost. Apple Company has long haul destinations of
advancement. The utilization of business systems has promoted a lot to the fruitful and fast
development of Apple Company.
Recommendations
Apple Company has a solid culture that impacts the usage and viability of the business
procedures. Along these lines, Apple Company will keep on leading in the PC business in the
event that it doesn't relinquish its business procedures. In addition, the organization ought to
depend just on the current business techniques. It should go for creating and actualizing new
methodologies that encourage its business. Different organizations, for example, Spiritual
Refreshments are prescribed to put resources into Apple Company and begin utilizing business
procedures as well as financial benefits. Supervisors are in this way expected to create activities
that assist in executing the utilization of business procedures.

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