Red Bull's Business Plan: Executive Summary and Financial Analysis

This report presents an executive summary of Red Bull's business plan, focusing on the implementation of new hybrid packaging technology to reduce costs and improve market competitiveness. The report outlines the project background, objectives, current situation, and the problem and opportunity statements, emphasizing the need for change in response to competition and outdated packaging methods. It includes critical assumptions, constraints, and preliminary project requirements, along with a detailed budget and financial analysis. The report also covers schedule estimates, potential risks, and recommendations, concluding that adopting hybrid technology is crucial for Red Bull's competitive advantage. The analysis considers financial statements, market share, employee considerations, and stakeholder alignment. The report also includes references to relevant literature and resources used for the analysis.

INDIVIDUAL BUSINESS
CASE

EXECUTIVE SUMMARY
This report has highlighted the business plan for the Red bull who was trying to bring the new
technology of packaging in the organization. This report has shown the project background,
objective and the current situation to understand the need of the change and also this project has
shown the critical assumption, constant, preliminary requirement to explain the requirement and
the things which need to be arrange. This report has also shown the financial analysis in the way
of balancesheet and the budget.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
BUSINESS PLAN...........................................................................................................................4
Project Background................................................................................................................4
Objective.................................................................................................................................4
Current Situation....................................................................................................................5
Problem and Opportunity Statement......................................................................................5
Critical Assumption and Constraint.......................................................................................5
Preliminary Project Requirement...........................................................................................6
Budget.....................................................................................................................................6
Financial Analysis..................................................................................................................7
Schedule Estimate..................................................................................................................8
Potential Risk..........................................................................................................................8
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Red Bull is an energy drink sold by Red Bull GmbH, an Austrian company created in
1987. Red Bull enjoy highest market share in the industry. This report highlights the plan for the
change for the selected organization.
BUSINESS PLAN
Red Bull is one of the leading company in the energy drink market but now a days facing
some competition from the other company due to the price and the packaging of the product.
After going through all the aspect it was found that the technology used by the company in
packaging is outdated and increasing the cost of the company so the company has decided to
bring the new technology which can decrease the price of the product to get a competitive
advantage McKeever, (2016).
Project Background
The company will adopt the new hybrid technology packaging system in the local market
of the Australia first in which the company will replace the same technology with the older
technology which was consuming the larger amount of the raw material and the electricity in
packaging the product. The hybrid technique will be first introduce in the 2 factories and after
the evolution of the result it will be carried forward to the other factories in the Australia. This
project will be implement in such a way that he employee in the organization will be given the
training of the same before hand only and after that the best employee or worker will be shifted
to operate this operation in the business.
Objective
The main objective of the business is to lower down the cost of the product so that the
product is able to defend the competition which is faced by the company who are selling the
drink at a lower rate and the customer are attracted toward the same and for that reason the
company has designed a SMART objective Dale,( 2019). SMART objective is as follows:
Specific: The company has clear and specific goal to reduce the cost of the product by reducing
the cost of the packaging Cameron & Green, (2015).
Measurable: The company will measure the goal by seeing the result of the project and
comparing the same with the past performance of the company and identifying the change which
has been occurred.

Attainable: This goal is attainable with just the specific training of the employee and
implementing the project with all precautions and the step wise process.
Relevant: It is relevant as it will help the business in dealing with the competition in the long run
Hayes, (2018).
Time bound: The company has to achieve the goal by the end of the 1 year. 1 year is the time
period for the company to implicant the Hybrid technology all across the Australia only not in
the whole organization.
Current Situation
If look at the current situation of the Red bull then the company is doing well in the
global market but there are some sort of the sign that the company is loosing the market share in
the global market specifically in the Asian side as the competitor are using the different
marketing and the selling strategy. The biggest competition which is faced by the Redbull is
from the Monster company who is selling their product at the lower rate as compare to the red
bull. The company is still doing good in the Local market but facing the real issue in the global
market as the market share of the company is reducing which is a good warning alarm for the
company.
Problem and Opportunity Statement
Cost of the product: The cost of the product is the biggest problem which is faced by the
biggest problem which is faced by the company as it is proving as a big reason of keeping the
price of the product at that high, Hybrid technique will reduce the wastage of the product and
also will consume the less raw material and the electricity in the packaging of the product which
will provide the opportunity for the business in lowering down the cost of the product Schnabel,
Swaminathan & Joachims, (2015).
Time consuming: The older technique of the Packaging was the time consuming as it
was taking the time in the production of the product but the new technique will reduce the time
of the product making as the hybrid technique is having the capacity of packaging the product
faster than the old technique.
Critical Assumption and Constraint
Employee Dissatisfaction: It is one of the biggest constraint for all the organization at
the time of the change as the employee in the organization is not happy with the change as the

change creates the uncertainty in the mind of the employee as the company need the good and
skilled full employee and the Red bull will provide the training to the employee of the
organization. Red bull has to make the assumption that all the employee are ready to adopt the
change and with the help of the training the employee are ready to face the challenges. Red Bull
will be including the employee of the organization in the process of the change which will help
the organization in building the good trust among the employee Robinson & et.al., (2015).
Stakeholder Disagree: This is one of the biggest issue which is faced by the company as
the stakeholder always looks to avoid the changes in the organization as the stakeholder is
always interested in the operation of the business as the monitory benefit are their of the
Stakeholder in the success of the business. The company has to assumption that all the
stakeholder of the company is ready to adopt the change in the organization. The company has to
make sure that the proper communication is passed in between the stakeholder and the company
so that the all the stakeholder has the idea what will be benefit of the change to the organization.
Preliminary Project Requirement
 The preliminary project requirement of the above project is the capital as by the help of
that only the company will able to buy the new machinery and the technique as it is the
initial requirement of the company is to buy the machinery.
 The second requirement of the company is to experienced employee who are having the
already knowledge of the technology which company is trig to adopt in the organization
and the technical resources so that by the use of them company is able to train the
employee in the organization how to dealt with the new technology Possenti & et.al.,
(2016).
 The third requirement of the company will be the Human resources as the new
technology will require the more number of the human resources in the organization so
that the organization can carry out the business very easily.
Budget
The company will be requiring the minimum of the 95,000 Australian dollar to implement the
project in the organization (Grizzle, 2018).
Budget
Requirement Rate in Australian Dollar ($)

Machinery and Equipment 50000
Technical resource 8000
Wages of the employee 15000
Training cost 5000
Utility Bills 10000
Transportation Bills 7000
Total 95000
Financial Analysis
When we looks at the financial position of the Red bull then it has been find that it is in at
the great position as the turnover of the company was 5.541 billion in the year 2018 with total
sale of the 6.8 billion cans (Financial analysis. 2018).

Schedule Estimate
Planning: The company is planning to change the packaging technology in the
organization to reduce the cost.
Sourcing: The company has source for the technology with the help of the interment and
by evaluating the competitor organisation function.
Evaluating: Out of the total alternative selected the company has decided to used the
Hybrid technology to produce the good.
Implementing: The company will be implementing the same in the two factory of the
Australia first and then look for other in future Wirtz & et.al., (2016).
Illustration 1: Balance Sheet
(Source : Financial analysis. 2018)

Monitoring and controlling: Company will be controlling the project by hiring the new
skilled employee and monitoring the project with the help of the standard set in the past and
comparing with the result of the new project.
Potential Risk
Hampering the other work: Implementing the new technology can hamper the other
work in the organization as as new technology will shift the focus of all the company on the new
technology which can affect in negative way.
Increasing the Employee turnover rate: Implementing the change in the organization
can increase the employee turnover rate in the organization as the change creates the uncertainty
in the mind of the employee which eventually affects the motivation level of the employee.
Maher, Fakhar & Karimi,( 2018).
Recommendations
The company are having the other option also other than adopting the new technology,
they are the company can adopt the different tool of the operation management in the
organization to increase the efficiency of the production. The company can also take the help of
the out sourcing firm for the production of the package it will help them in getting the new
technology at low rate Wirtz & et.al., (2016).
CONCLUSION
After going through above report it has been summarised that the company need to adopt
the Hybrid technology to package the product which will help them in getting competitive
advantage.
REFERENCES
Books and Journal
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Dale, B., 2019. One Shot Pub: A Business Plan.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Cameron, E. & Green, M., 2015. Making sense of change management: A complete guide to the
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Wirtz, B. W. & et.al., 2016. Business models: Origin, development and future research
perspectives. Long range planning. 49(1). pp.36-54.

Erasmus, B., Strydom, J. W. & Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Grizzle, G. A., 2018. The Importance of Performance Data to Budget Reform. Performance
Based Budgeting.
Schnabel, T., Swaminathan, A. & Joachims, T., 2015, May. Unbiased ranking evaluation on a
budget. In Proceedings of the 24th International Conference on World Wide Web (pp. 935-
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Maher, M.H., Fakhar, M. S. & Karimi, Z., 2018. The relationship between budget emphasis,
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Online
Financial analysis. 2018. [ONLINE]. Available through
<https://energydrink.redbull.com/company>.