Business Management and Strategic Management Report: Araya Drinks

This report provides a comprehensive analysis of Araya Drinks, a non-alcoholic beverage company located in New York City. The report begins by explaining the significance of the company, highlighting its focus on serving non-alcoholic beverages and promoting a healthy environment. It then details the development of the company's mission statement, emphasizing its commitment to providing refreshing drinks and encouraging an alcohol-free lifestyle. The report explores current trends in the non-alcoholic beverage industry, such as the use of cold brew and water-based drinks, and discusses the importance of adapting to these trends to maintain a competitive edge. It also addresses the strategic positioning of Araya Drinks, emphasizing the need to analyze the target market to understand customer preferences and tailor strategies accordingly. Furthermore, the report provides an overview of the company's distribution channel, outlining how products reach consumers through wholesale marketing to grocery stores, restaurants, and other retailers. It also identifies three types of risks the company may face, including health and safety regulations, employee safety concerns, and registration issues. Finally, the report includes a SWOT analysis, summarizing the company's strengths, weaknesses, opportunities, and threats, and providing recommendations for future growth and success.

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Business Management and Strategic Management
Name of Student
Name of University
Author Note

1
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Table of contents
Explaining significance of the company....................................................................................2
Developing company mission statement....................................................................................2
Describing trends in non-alcoholic beverage company.............................................................2
Choosing a strategic position.....................................................................................................3
Providing an overview of the distribution channel....................................................................4
Outlining three types of risks.....................................................................................................4
Developing SWOT analysis.......................................................................................................5
Reference....................................................................................................................................6
Appendix....................................................................................................................................7

2
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Explaining significance of the company
Araya Drinks is a non-alcoholic drink company located in New York City, USA.
Araya Drinks is a five-year-old company serves fruit juices of all types to customers addicted
to consuming non-alcoholic drinks. The significance of the company is the fact that it
maintains a healthy environment and restricts the entry of any alcoholic drink that may affect
the lives of individuals. Soft drinks, lemonades, punch, mojito are some of the non-alcoholic
drinks that are served by the company. Another significant contribution that the company
makes is the fact that drinks help in controlling the addiction people have on the consumption
of alcoholic drinks.
Developing company mission statement
A mission statement of a company includes the scope of an organisation; its purpose
and the type of products that the company intends to manufacture (Ekpe, Eneh & Inyang,
2015). The mission statement helps employees to remain aware of the target that is needed to
be achieved by fulfilling the responsibilities provided to them. In this regard, it can be said
that the mission statement of Araya Drinks is to serve the best and refreshing drink in the
community and gather people to lead an alcohol-free life.
Describing trends in non-alcoholic beverage company
According to Mirasgedis et al., (2014) stated that in order to succeed in business it is
necessary to analyse the trends that are present in the modern world. Maintaining the trend
can help in gaining competitive advantage in the market. In this regard, the trends that signify
the development of beverage industry include the use of water while preparing the drinks.
The brew of the drinks using a cold brew helps in enhancing the flavour of the drinks. In the
USA, the cold brewing had a prominent demand in the beverage industry.

3
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Figure: Chart of growth of cold brew
(Source: Hill, Jones & Schilling, 2014)
The chart also signifies the growth of the growth of the beverage industry in the recent times.
In order to maintain the trend in the industry, Araya Drinks need to ensure that the
application of these tactics is made in the non-alcoholic drinks such as in mojitos, punch and
lemonade in the company. The trends in the industry can help in creating opportunities in the
beverage industry and ensure that Araya Drinks attain the mission statement of the
organisation.
Choosing a strategic position
Peppard & Ward (2016) stated that the choice of strategies is an important factor for
an organisation. In order to gain a competitive advantage, it is necessary for every
organisation to implement a strategic position that can help in fulfilling the objectives of the
organisation. Similarly, in the case of Araya Drinks, the company need to implement the
strategic positioning of analysing the target market. This can be effective in order to

4
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
understand the tastes and preferences of the customers. Based on the analysis Araya Drinks
can formulate plans and strategies in order to help the organisation exceed from its
competitors. This can be done by reducing the prices of the products or by providing special
drinks are complimentary in order to attract the customers. Addition of ingredients can also
be done in order to attract the customers in the organisation. This can help in developing the
future of the organisation and create a competitive advantage in the market.
Providing an overview of the distribution channel
In order to promote products, it is necessary for an organisation to maintain a proper
distribution channel that can help in supplying the products to various places (Cui &
Mallucci, 2016). The distribution channel for the promotion of Araya Drinks includes
wholesale marketing of the products. The products need to reach grocery stores or stores that
deal with the sale of non-alcoholic drinks or in a restaurant. In order to do this, the
organisation needs to maintain a systematic distribution process. The end users can be
reached by directly making contact with the places. This can be done by creating a monthly
subscription with the distribution parties and transferring the products by the use of vehicles.
Thus, the distribution channels need to be maintained strategically in order to avoid any
confusion regarding the sale of products.
Outlining three types of risks
The three types of risks that may be involved in the beverage industry are the health
and safety regulations of the customers. The consumption of alcoholic drinks causes
problems among people. Thus, this can be a major risk factor for Araya Drinks. The safety
regulations of the employees are also a risk factor, as the manufacturing of alcohol requires a
mixture of chemicals as well as liquid components (Pinedo & Walter, 2013). This can cause
problems among the health of the workers if the workers are not careful. Another risk that

5
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
may arise is getting proper registration for the company. Most of the times it is seen that
registration of non-alcoholic drinks can suffer from being legally accepted. This may prove a
huge risk in conducting the business (Crane, 2015). In order to mitigate these risks, Araya
Drinks can ensure that the food and health department of the country tastes the drinks
provided by the company. The registration of the company along with the safety of the
workers can be ensured after gaining legal recognition.
Developing SWOT analysis
(Refer to appendix)
The SWOT analysis is conducted to identify the internal resources of an organisation
(Bull et al., 2016). The SWOT analysis of Araya Drinks shows that the company despite
being new have good employee strength. The updated trend in business signifies a proper
level of success in the market. However, the inexperience in the beverage industry can also
be a weakness for the company. In addition to it, the lack of financial instability is also a
concern for the company. The biggest threat faced by Araya Drinks is the Government rules
and the restrictions it may suffer due to the registration problem that occurs in the beverage
industry. However, opportunities can arise in the form of expansion in the global market.

6
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Reference
Bull, J. W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., ...
& Carter-Silk, E. (2016). Strengths, weaknesses, opportunities and threats: A SWOT
analysis of the ecosystem services framework. Ecosystem services, 17, 99-111.
Crane, M. (2015). In Response: Challenges when weighing evidence about environmental
risks—An industry perspective. Environmental toxicology and chemistry, 34(11),
2444-2445.
Cui, T. H., & Mallucci, P. (2016). Fairness ideals in distribution channels. Journal of
Marketing Research, 53(6), 969-987.
Ekpe, E. O., Eneh, S. I., & Inyang, B. J. (2015). Leveraging Organizational Performance
through Effective Mission Statement. International Business Research, 8(9), 135.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Mirasgedis, S., Georgopoulou, E., Sarafidis, Y., Papagiannaki, K., & Lalas, D. P. (2014). The
Impact of Climate Change on the Pattern of Demand for Bottled Water and Non‐
Alcoholic Beverages. Business strategy and the environment, 23(4), 272-288.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Pinedo, M., & Walter, I. (Eds.). (2013). Global Asset Management: Strategies, Risks,
Processes, and Technologies. Springer.

7
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Appendix
SWOT analysis of Araya Drinks
Strength
 Good employee strength
 Updated trend in business
Weakness
 New in the beverage industry
 Financial instability
Opportunity
 Global expansion
 Increase employee satisfaction
Threat
 Possibility of being restricted from
registration
 Government policies