Managing Capital for Torides Soft Drink Manufacturing Company

Managing Capital

Nature of the Business
• The startup is a soft drink manufacturing company. It is known as Torides, which is a vitamin enriched soft drink that is rich in
energy specifically targeting high performance acts like Athletes. Torides has been set up to compete with energy drinks like
coca cola and Gatorade among others. As a startup it has a long road to compete with the established brands that are produced
worldwide by big multinationals. As a soft drink, a lot of consideration in preparation has been made (Allen, Lee, and Reiche,
2015). The goal of the start up is to;
• Short-term objectives
• Company growth, in terms of locations established for distribution, increase in number of customers and expanding employees
and management bases
• Increase strategic partnerships with retailers and wholesalers and establishing a viable supply chain
• Long-term
• To be profitable and expand our horizons internationally
• To be an established brand known globally and has the best reputation in giving quality vitamin rich soft drinks.
• To give the best quality of vitamin rich energy drinks that are different from the rest in the market
• To grow and expand in order to compete with the rest of the competition
• To introduce many more products and expand the business to a giant multinational with an array of known soft drinks.
• Establish dominance in the industry.

Situation Analysis
• Factors that may be crucial for the firm in the future are called strategic. According to one of the leading Western experts, B. Karlof, they, influencing the strategy of any organization, give it
specific properties.
• These factors include:
• 1) The mission, reflecting the philosophy of the company, its purpose. When revising a mission as a result of a change in public priorities and needs, the strategy should be adjusted. The
degree of compliance with the mission strategy and the goals of the organization is called realism (the latter may be complete, partial or absent altogether (Epstein, 2018).
•
• 2) The competitive advantages that the organization has in its field of activity compared to rivals or to which it seeks (it is believed that they have the greatest influence on the strategy);
• 3) the nature of the products, especially its sales, after-sales service, markets and their boundaries;
• 4) organizational factors, among which stands out the internal structure of the company and its expected changes, the management system, the degree of integration and differentiation of
internal processes (Crane, and Matten, 2016)
• Environmental analysis in the factory is that an environmental impact assessment will be conducted before the set up of the factory. Waste management programs and energy efficient systems
are set up within the system.
• The potential customers are the athletes mostly who want energy in their bodies. Other markets and consumers can also partake this.
• Geographical area in the set up will be the strategic area where deliveries can be made faster and raw material can be gotten easily.
• Business competitors in the business are multinational companies like Coca-Cola, Pepsi and Gatorade.
• 5) disposable resources (material, financial, informational, personnel, etc.). Structural, informational and intellectual resources are of great importance for the development and
implementation of a strategy.
• 6) the potential for the development of the organization, improvement of its activities, expansion of scale, growth of business activity, and innovations;
•
• 6) culture, philosophy, ethical views and competence of managers, the level of their claims and enterprise, leadership ability, the internal climate in the team.In addition to the points listed by
B. Karlof, the strategy is also affected by:
•
• 8) the degree of riskiness of the activity. Risk-prone firms prefer short-term strategies that generate high current returns; not inclined - long-ter

Political factors
• Political factors.
• These include: the economic policy of state administrative bodies, i.e. taxation system, preferential trade duties, consumer protection legislation,
product safety standards and environmental standards. For an organization engaged in international activities, the political stability of a given state,
as well as the establishment of special duties on imports of products, export quotas, etc., are of great importance (Forsgren, and Johanson, 2014).
• Relations with the local population.
• The nature of the relationship with the local community is very important for accounting and planning in any organization. Thus, each community
has its own specific laws and regulations on business and business relations with other organizations and institutions. Sometimes in order to
maintain good relations with the community, it is necessary to finance and support its social programs, as well as charitable activities in many areas.
• Competitors.
• The company's management must understand that the unmet needs of consumers create free market niches for competing organizations. The
competitors include, Pepsi, Coca-Cola, Gatorade and many others. The company, can concentrate on producing the best quality vitamin enriched soft
drink to compete with its competitors.
• The organization's strategy includes several elements and is the basis for strategic management.Strategic management includes the development
and improvement of the company's mission, its long-term goals and strategies, plans and forecasts, management and business methods, making
strategic decisions within the organizational structure, a set of business processes and the implementation of the company's strategic actions, in
conditions of uncertainty and competition.
• Strategic management is based on forecasting trends in market relations, a strategic analysis of factors of the external market environment and
consumer preferences, their changes in the future.The environment of direct influence includes factors that directly affect the activities of the
organization: