BUS 599 - Healthy Beverage Business Plan - Final Draft

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Running head: BUSINESS PLAN
Business Plan
Name of the Student:
Name of the University:
Author’s Note
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BUSINESS PLAN
Executive Summary
This report addresses on plan needed to put up a healthy beverage business. It starts with
introducing pertinent terms that would be found through the report. Such terms include business
plan etc. it defines necessary terms in relation to the context of the presentation and further give
their description in the subsequent sections. The report describes plans for technology
infrastructure required, dealing with competitors, management of the firm, operational plan to be
put in place, plan on limiting costs and maximizing on profits and revenue as well as plan on its
finances. The report would be introducing with the name of the business which is to be
established and the main missions and visions which is associated with the business would be
discussed appropriately. The report would then move forward with the identification of the key
competitors which are operating in the market and formulate counter measures which can be
followed by the newly established business. The report would also be showing various plans
which are formulated by the management of the company which includes marketing and sales
plan, operation plan. It is on the basis of such plans that appropriate decisions re taken by the
business The discussion would also be including ethical and social responsibilities which needs
to be undertaken by thee new business in order to ensure that there is compliance with the
relevant rules and CST guidelines which the business are required to follow.
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Table of Contents
Company Description......................................................................................................................3
Industry Analysis and Trend............................................................................................................5
Target Market for the Business........................................................................................................5
Competition of the Business............................................................................................................6
Marketing Plan and Sales Strategy..................................................................................................9
Operational Plan............................................................................................................................12
Technological Plan........................................................................................................................15
TECHNOLOGICAL PLAN PREPARATION..............................................................................15
Rationale of The Company to the Society.....................................................................................17
Management and Organization......................................................................................................18
Board Members and Advisors...................................................................................................19
Ethics & Social Responsibility......................................................................................................20
Conclusion.....................................................................................................................................21
Reference.......................................................................................................................................22
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Company Description
The name of the company chosen for this particular study is Healthy beverage Bar and
supplying a wide range of made to order fresh beverages in Atlanta, GA. The company is one of
the leading companies in the world for producing non-alcoholic beverages. It has a market share
of more than 52% and has huge control over revenues. It has its branches across the globe and it
is headquartered in United States of America. The reason for choosing this company is because
they have diversify the drinks to include every kind of healthy drink catering to the needs of
sportsman from across the globe. It has also games for clarity because of being one of the
sponsors in the world cup. It has also sponsored National soccer team and has made drinks
keeping in mind the different demands of heath oriented persons. The name of the company
aligns with definition and purpose of the company. The extended meaning of the term is the
provider of life and eternal youth. The catchy name has a very deep meaning which is profound
as well as universal. It has been believed in the history that this drink provides immortality and
the company also aims to live eternally in the minds of the consumers.
The non-alcoholic drink will be very low on sugar and will have negligible amount of
preservatives. It will have the right balance of minerals, protein and carbohydrates. There will be
no chemicals used and the product will be natural. The company shall be producing four flavors,
namely, strawberry, and vanilla, chocolate and mint. The company will also produce a different
drink for women specially, to cater to the needs. For a long period of time, the soft drink industry
has been persistent with high sugar level drinks that are usually unhealthy and lead to health
problems. The name aims at enticing customers to our stores to not only refresh themselves but
check their health by consuming Healthy and refreshing beverages.
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Mission Statement
The mission statement of the company is different from others because it is aimed at
preserving the health of the consumers without utilizing any chemical substances. The mission
statement of the company is as follows:
“Help in energizing the world through natural ingredients, both in terms of mind spirit
and body”
The components of the mission statement are a way of understanding the goals and
principles of the company and how they are willing to work towards creating more happiness
and optimism in the world (Cohen et al 2015). Energy drinks have a way of making customers
feel energetic and invigorated. The information included in the mission statement is very
important to get a better idea of the company perspective.
Industry Analysis and Trend
The company has always worked on the needs of the consumers to understand and get
hold of the market better. The company has started to make vinegar probiotics. Probiotics are
scientifically proven to help in digestion and also boost the immune system (Savell, Fooks and
Gilmore, 2016). The idea of inducing vinegar and probiotic in the drink is creating a balance
which is both invigorating and energizing. The aim of the company is to induce Health with taste
so that no hand is committed to the body. A new range of the product is coming out in the flavor
of coconut water which is refreshing and will try to make peace with the increasing consumer
demand. The reason why this company will do better than the other counterparts is because it is
infused with vitamin as well as supplements which will benefit the players in the long run. The
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players are very health conscious and therefore it is only is a food Dame to grab a healthy drink
during their practice.
Target Market for the Business
The target market of Healthy beverage Bar Company is young people (youth) those
majorly prefer to have such kinds of drinks on the daily basis and in significant quantum. The
products that are designed by the company are according to the choice of youth, thus they can
appeal young generation of 15 to 35 years. It has been expected that this age group cover approx.
25% of the market. The way of living of young generation enforces and attracts them towards
drinking such beverage that gives then taste, energy boost which keeps them energetic for long
time (Cohen and etal.2015). The beverages are made available in the areas such as schools,
canteens, colleges, malls and everywhere in the country which can easily attract the consumers to
buy it. Advertisement and promotions that are done on the television and radio, magazines,
newspapers online media, mobile phones so that the targeted market assist in communicating in
effective manner regarding the product and latest offers of the company (Martin, 2018).). Apart
from this the products are not very costly, they are provided at average rate which can be
affordable by all and that is a biggest advantage of it.
Competition of the Business
According to the analyst’s survey it has been assessed that there are more than 200
brands of beverages worldwide. Brands such as Pepsi, Coca-Cola, Red bull, Full Throttle, Amp
are the major competitors in the beverages industry. 42% of the market is covered by red bull
(Pettigrew and etal, 2015). Further, Arden’s Garden is one of main competitor as it is located in
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same business area. As their marketing strategy is focused on health, thus it attracts the
customers in significant manner. However, there are various competitors in the field of
beverages in the market and they are constantly coming back with the new and innovative idea
and taste to survive in the market place. Thus, it can be concluded that the company has to fight a
tough competition in order to sustain in the beverage industry. The following table provides a
breakdown of market share of various energy brands that are presently at the market.
Table 1: US Energy Drink Market Share
Brand Company Market share (%)
Red Bull Red Bull Inc. 42.0%
Rockstar Rockstar Inc. 11.0%
Monster Monster Beverage Co. 14.0%
Full Throttle Coca-Cola Co. 6.9%
Amp PepsiCo 3.6%
Others Others 22.5%
Total 100.0%
Company message
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The message of the company is provided through its mission statement. The same is as
follows: ‘Help in energizing the world through natural ingredients, both in terms of mind spirit
and body’. The five F’s on which company and product emphasizes are as follows
Focus
Primarily for marketing business strategy of the company is developed in accordance
with the objectives of the company (Gittelsohn, Trude and Kim, 2017). It seems that mission
statement includes the idea, meaning depth of the suggested business practices which are
compiled by the company. Focus is not just about what business you want to do but it is also
about making decision regarding the manner in which business operation will be continued or
operated. Focus includes various strategic thrusts and important areas which should be
emphasized while developing marketing strategy of a company. Thus, the main focus is on
accomplishment of mission of the company.
Follow-through
Actions and implementations are considered as part of strategy formation (Kuazaqui,
2018).). In case which there is a lack of follow-through various strategies don’t work. It is very
obvious, if there is no implementation of polices in adequate manner there is no compliance with
strategy developed. Therefore, the company make efficient attempt to align people and resources
for execution of the plans for achieving the objectives.
Feedback
For making the plan successful it is important to get feedback on regular basis and it must
be assured that all the stakeholders are kept advanced frequently however it happen where plan
breaks down. Attainment of feedback at reasonable intervals is one of the practices followed by
company in order to operate business operations with smoothness.
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Flexibility
The execution of strategy is done in the changeable and lively environment. Therefore by
considering the changes and surprises that arise within an environment, plans required to be
adjusted or altered. The procedure of strategy implementation followed by the company is strong
and with a high degree of flexibility so that required changes can be indulged in the business
process of the company.
Fun
The specified variant does exist in the organization culture in order to develop positive
environment (Davis and et al, 2015). In order to indulge same, attempt is made to have
interactive strategy sessions so that it does not result into boring meet out and every one attempts
to be part of it on its own and not by force. Moreover, strategy is not merely positioned apart
from this but it influences and inspire the employees and management for attainment of
objectives. Thus, through involving the element of fun in the organization employee work with
excitement and procedure will turn out to be vale adding and productive.
Marketing Plan and Sales Strategy
The nature of the management of this company is very democratic and it believes in
inclusive treatment of all the employees and company staff. The best position for the company
will be to utilize the concept of think global and act local (Fahy, 2012). This will help in driving
out competition from the market and also established the company as one of the leaders in
producing sports drinks. The reason for implementing the strategy is to ensure that it can protect
its own image and also position them in the Global market. This will help in creating a uniform
image of the company in the eyes of the customers (Idris & Abdul Wahab, 2015). This will also
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avoid fragmentation and the company will be able to produce strings to meet the specific
demands of the sports players on a domestic level as well.
Market dynamics suggests the factors that effects any market, as per the theory of
economics, there are supply and demand, price and quantity to analyze. The new health drink
brand might face problem in the early stage to meet the demand and supply curve, in the
beginning. As new employment will be made, there will be increase in demand size economics.
Based on these the company needs to undertake effective business strategies like
promoting the product in a global level to increase the sales.
Figure 1: Steps to make a comprehensive business an (Source: Self developed)
Distribution
The distribution of the company places a very important role to gain better economy and
profit. It is also a method of selling the product and utilizing agents to sell the product to fulfill
their monthly profit demand. The company well sends the drinks in sports venues and also in
grocery stores (Elkington, 2014). This is a method of helping the customers get accustomed to
the availability of the drink. Only limiting the drink to the sports day when you will not get the
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attention of the local players will affect the business. The best way to reach out to the customers
is by creating advertisement on television, magazine and brand endorsement. The new generation
is focused on using Social media strategy; therefore, advertising through social media is the best
way to reach billion of customers.
Risks
Identified Risks Ways to mitigate
As it is a NAB product, Ethics,
Compliance and ABAC are
maintained or not that needs to be
investigated.
Following Rules of the government ,
accepting beverage category
Damage to the corporate reputation
as well as brand culture.
With the overgrown competition in the
market ,the company faces huge competition
with PowerAde, Coca –cola, PepsiCo ltd.
Not branding in the As the company is focusing mostly on
branding in urban areas, they might miss the
customers from rural areas
The risks that will be faced by the company in producing health trains is getting
permission from the government to ensure that the products are certified by doctors and
nutritionist. Company my face the risk of getting permission to do business on natural health
drinks. The company shall mitigate the problem by taking proper precaution and registering with
the government authorities.
SWOT Analysis
The products will be organic and fresh fruits and organic vegetables will be used.
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Strength
1. Size and scope of the brand: they have
an incredible political clout that helps
to expand in different countries.
2. High quality beverages Delicious
healthy beverages, will be represented
in many ways.
3. Distribution tactics: they have branch
into different Global economies
(Kotabe, 2011).
Weakness
1. There is growing competition in the
market.
2. The price of the products is moderate,
but the business set up will be high,
with big ideas to intend money might
scare and may run out of money if not
carefully budgeted and planned.
3. It does not have any brand ambassador
to promote the health drink.
4. It is only restricted to health drink and
therefore the scope of expansion into
other branches is difficult.
Opportunities
1. They have the potential to diversify into
different variations of wellness and health
drinks
2. They have the power to venture into
different International markets and make their
presence felt
Compared to the soda drinks and juices these
will be healthier for people. 100% fruit juice
and vegetables are a smart addition to any
well-balanced diet, providing vitamins and
minerals like potassium, vitamin C and
foliate. Our beverages will be a convenient
way for adults and children to help reach the
recommended number of daily servings of
Threat
1. There is a lack of raw materials and
resources.
2. The sports companies are creating a
threat to the environment and the
scarcity of water is one of the reasons
why the health companies will have to
take accountability.
3. Indirect competitors: there are many
boutique companies that are posing
threat to the growth of this company.
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fruits and vegetables.
Operational Plan
Operation plan of The Healthy Beverage Bar Company is short however it is a detailed
plan that is put together by the organization’s managers with the sole aim of achieving specified
strategic goals and objectives of the company. It normally has the aim to see to it that the said
objectives are achieved without failure in order to increase the revenue and profits of the
company so as to attract investments.
For the operation plan of the company motives of growing their business to the global
market to be effective, it has to inform their producers to make every attempt to increase
production levels. Carrying out market research to establish demand in the projected locations is
another thing to be done by the firm. It should device means to attain competitive edge in light of
competing interests advanced by competitors in the market to ensure that they carry on good
business relations with its clients (Munkelt & Völker, 2013).
The main aspects of operations
The operational plan plays an essential part in the success of the company. It serves as a
guide in the growth and management of all procedures required to control inventory, storage,
shipping, and customer services. The Healthy Beverage bar has decided to use the just-in-time
system of inventory because this is a new business looking to minimize storage and material
holding expenses. There will be multiple local vendors of raw materials that will support
Healthy Beverages with the main objective of preventing shortages and production issues that
can be resulted from the use of one vendor.
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Cost and Time Efficiencies
Healthy Beverage Bar has numerous measures to lessen its costs associated with
operations at the same time increasing time efficiency. Moreover, the company shall attract only
experienced workers working fast to minimize waste. In addition, the firm will not hold higher
than 1000 units at a time. The company will utilize drop ship services to cut on overheads and
improve efficiency (Moon, Shin & Park, 2013).
SWOT Analysis Identification
In order to come up with well-developed and successful strategic planning, Healthy
Drinks management needs to deeply undertake SWOT analysis to know the strengths and
weaknesses of the firm (Sayyed, 2013).
Using PESTEL Analysis
Competitive advantages for the company will be created using many different factors.
The fact that this is a small business allows The Healthy Beverage Bar to be more aware and
fully alert of the completion. The business will begin by using the application of the just in-time
inventory system. Ultimately, operations can change at any given time as it relates to the level of
the demand in the market. The company has diminished the chance of bureaucracy because it is a
new business to the market, which increases the effectiveness of the decision-making process
(Dockalikova & Klozikova, 2014).
RESEARCH AND DEVELOPMENT
In strategic management, the problem of successful adoption is within how effective or
bad Healthy Drinks firm deals with issues concerning changes.
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Using traditional management reports can lead to the operations management not being
aware of what is progressing and can lead to low performance. Therefore, the use of traditional
management reports are not recommended in overseeing the implementation strategies.
The distributor and external suppliers will take care of the transportation costs for the
finished products. Healthy Drinks will recruit only qualified and experienced workers at the cost
of $13 per each hour. Although they are costly, they serve in limiting the waste while adding up
the amount of production.
Technological Plan
Certain forms of technology are in adoption by most business firms in carrying out their
business operations. For instance, business professionals utilize information technology in
tackling orders and keeping records of finance plus keeping in touch with clients and suppliers.
The following are steps followed in The Healthy Beverage Bar’s technological plan:
I. Marketing and high quality blueprint website creation will be involved with the sole
purpose overseeing to it that easy communication with clients and internet sharing
platform where buyers and customers can post their requirements and dissatisfactions
with freedom.
II. Opting for a technology with possibility to grow and change with respect to Non
Alcoholic Beverage Company and supports strategic goals of the organization. This
can be done by use of templates and tools together with resources from the websites
to assist in decision making relating to how much it is capable of outlay on
technological investments.
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III. The firm evaluates software and hardware in line with the organization’s
requirements. This involves engaging all of all the parties associated with the industry
by typically providing lists of the sellers who are useful to providing industry-specific
technology. Development of a disaster plan to deal with emergencies will be done to
take care of any probable unforeseeable bad eventuality.
TECHNOLOGICAL PLAN PREPARATION
Software Needs
In order to make the company faster and sharper, the business will make and important
decision to invest in and implement an efficient ERP (Enterprise Resource Planning) system.
This will ensure that all divisions can access instantaneous data and information needed in their
running (Bakhshi, Kunche & Pecht, 2014).
Hardware Needs
The company is in ownership of a few pieces of hardware. The table below demonstrates
some of the equipment owned by The Healthy Beverage Bar. The business owns two beverage
mixers which can mix up to 200 gallons amounting to at $28,500. The Beverage Filling Machine
(imported from Italy) is integrated with a filling, rinsing and capping three capabilities in one
machine of Monobloc.
In order to reduce its expenditures on operation the company has invested in technology
by automating its processes. The Healthy Beverage Bar recognizes that labor costs are major
factors of cost for a manufacturing.
Table 1
Equipment Quantity Value for one Total Value
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200 gallon Beverage Mixers 2 28,500.00 57,000.00
Bottling Machinery (Helps in filling and
capping) 2 9,600.00 19,200.00
Vehicles (Used panel vans) 4 10,000.00 40,000.00
Computers (Apple Macintosh) 3 1,200.00 3,600.00
Graphic software 1 750.00 750.00
Total Value 120,550.00
Equipment Owned by The Healthy Beverage Bar
Table 2
Equipment and a Monthly Charge
Equipment Monthly Charge
Labelling Machinery 450
Printers 550
Telecommunication Needs
The organizers are aware of how important the effective communication is in the success
of the business. The company targets to lessen the usage of paper-based communication. All
communications between the enterprise and its stakeholders will have carried out through email
like placing orders with suppliers, receiving orders from clients, and managing the distribution of
the firm’s products (Morreale & Terplan, 2018). Lastly, the other important communication the
company is in need of our website hosting and offsite data back-up and the website should be
hosted in a secure environment to prevent data loss occasioned by hacking.
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Rationale of The Company to the Society
People are both staff, owners and customers coming to buy the product of the company.
One of the major responsibilities for The Board of the Directors is to select and oversee the
senior managers and is made up of the chief executive officer. (Sosik & Jung, 2018).
The responsibility of the general manager is to oversee the administrative functions in the
company. An important part of their roles consists of leading and directing staff members. The
general manager is also responsible for delegating administrative staff members of their tasks
and duties.
The management team usually includes office manage, supervisor and team leader. The
duties of the office manager overseeing office services by organizing office work and staff
members. The supervisor along with the team leader is in charge of setting performance
standards in the production of the work flow.
The Business has two motivated and capable partners, who are ready to in put their effort
to see the company succeed in the future. The company will recruit experienced people in
various capacities to cut down on its operational cost example a staff handling with finance will
also do administrating role. The business is aware the significance of having a well-organized
team from management down to the team lead.
Management and Organization
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Sharon M. Richie will act as the president and CEO of the company. Due to the fact that I
am the one that created the original idea behind the company, I will also work as the master
mixer and quality control. Cassandra Parks, who has worked as the plant production Manager at
Smoother King, she has decided to leave the company after working for the company for 28
years, will be in entrusted with production line.
Board Members and Advisors
The board of directors and advisors are needed to offer guidance in the creation and
growth of the company. The organization will have 6 boards with a diverse background. The
board of directors and advisors will offer guidance in the structure and development of the
company. The board members will consist of individuals that are able to make independent
decision. The board and advisors will be free to criticize the management. The Healthy Beverage
Company is aware of the vital role played by the board of directors and advisors, especially
because the business is new.
Management Structure and Style
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The Management team is aware of the fact that the convenience of an effective
organizational and corporate structure enables the company to be more attractive to investors.
Each role in the company will have a specific duty and description that will be defined by the
company.
Management hierarchy
The management as well as organizational plan will comprise the good strategies of
management that Managers of Healthy Drinks enforce to guarantee the growth of the company.
They include; Employment of qualified workforce. In order for The Healthy Beverage Company
to grow, the management team will need to hire qualified top management personnel who have
the ability of ensuring quality products are produced and expanding customers (Moran& Morner,
2017).
Instilling teamwork
As a valuable strategy teamwork need to be employed to ensure expansion in the
international market. Teamwork ensures that the production of the product is completed at the
right time and with the right technology and equipment as required by the consumers
(Baroncelli, 2016).
Ethics & Social Responsibility
Legal Requirements
The business shall be registered as a small micro business enterprise as per the
requirement of law. The business owner shall comply with the necessary requirements for
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BUSINESS PLAN
registration. A valid business operational certificate will be issued after a successful registration
of the enterprise.
Financial Plan
The financial strategy is to gradually move towards a position of financial independence
– via a framework of clear financial accountability by using the best commercial practice in
financial management procedures. A business bank account will be opened before the business
starts implementing its operations.
Arrangements for self-accounting will start immediately, with the intention of having an
opening balance sheet, incorporating asset valuations. For internal comparison purposes, a
monthly reporting requirement will be introduced at the end of the first month of business
operations.
Business Sustainability and Environmental Impact
To enable continuity of the business, the firm intends to use the money generated from
the business to finance the organizational administrative expenses and the accrued interest
ploughed back into the firm account to upgrade this bright idea. This will sustain the program
after one and half year working capital borrowing follows at the end. The business will also have
adverse impacts to the environment due to waste of bottles and pollution because of emissions to
the environment. The company will therefore build incellarators to enable them burn waste in a
non-pollutant manner. The company will also re use materials like bottle to minimize wastage
(Fornero& Monticone, 2011).
Product Use
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Our beverage product if used in excess will have negative impacts to the body of an
individual and therefore the company will label these products with things like ‘do not consume
too much of alcohol’. This statement will be a warning to the consumers of these products not to
take too much to the detriment of their bodies.
Use Prescription
Some our beverage products may have adverse effects to children on children, disabled
and pregnant mothers and therefore we prohibit the consumption of our product by these section
of individuals. Pregenant mothers if they consume alcohol might have pre-mature birth or cause
damage to the unborn baby. Children will have impaired judgement.the company will therefore
organize roadshows to create awareness to the community and advertise through television.
Conclusion
In conclusion, the above plan is very essential and detail for the smooth operation and
profitability of the healthy drinks. Adopting this plan will help the management penetrate into
the market with a lot of ease and seize a bigger market share with their product.it will assist them
compete favorably with other competitors in the market. This plan also will has clearly outlined
various aspects such as management plan, operation plan and financial plan aspect, all these put
together will constitute success of the business.
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