The summary is: 1) An ABC analysis revealed that the cost structure differed between the impulse and shop segments. Pick/pack and shipping costs varied based on pallet utilization, which differed between segments. 2) Merchandising expenses were mainly kits costing $500 each. An analysis found 90 kits were sent to shops out of a total of 3,450 kits. 3) A salesforce time diary study revealed reps spent 3 times more time on yogurt than estimated, with only 1% of time spent on shops. This increased the SG&A allocation from $1,185,000 to $3,900,000. 4) The new ABC analysis provided clearer visibility into costs

1. Running page: BUSINESS MODEL
1
BUSINESS MODEL
2
Strategic Objectives
Jerry Seigle
BUS 475
Instructor: Fredric Hibbler
6/2/2015
Introduction
According to Porter (2008) the business has to survive in the
market regardless of the competitors. The business need to make
strategic objectives and vision that can promote competitive
advantage. It is achieved by proper planning and market
analysis. The importance of market analysis is to ensure that
business owners are aware of the external factors that may
affect the success of the enterprise. The outcome of the market
analysis helps the manager to understand their strength and
weaknesses.
The business trends may include; the change in demand and
supply at a given period. The order will change at the time when
the offer of product and services is not enough in the market. It
is a pattern that arises especially in the time of low supply. The
level of competition also increases or decrease in the market.
The competitor ends up by developing the new products or

2. substitute goods that are more competitive (Porter, 2008).
They try to win a larger market share so as to achieve high level
of competitive advantage.
The assumptions of the business model include; the products
that that are produced in the market by the company are
acceptable and suitable for the customer use. The business has
enough skilled workers to serve in the tactical and operational
level. The company works towards the satisfaction of the
client’s need. The company assumes that the stakeholders will
support in finance and performance requirements.
The business may risk by targeting high number of customers
through product redesigning. The redesigned product can then
be introduced to the market through marketing strategies. The
can also re-establish the required benchmarking standards to
improve the efficiency of the business. The business owner can
add more capital equipment for business work.
Strategic objectives
On shareholder value and financial perspective
The first objective is to increase the market share. The market is
increased by attaining more number of customers in the market.
The market share will be increased by 3% meaning that the
business will increase its customer by 3%. The second objective
involves the strengthening of financial facilities and resources.
It means controlling the cost and increasing the revenues. The
profits will be increased by 30 % while the cost will reduce by
10%. It means that the business level of profits will increase
while the cost will reduce (Fahey, 1998).
Third is to increase the competitive power in the market. The
power will be increased by 40% meaning the business products
will have a competitive advantage in the market. They will sell
better than those of customers. The company can overcome the
market barriers to entry. The products of the business can serve

3. a better role than those of competitors (Porter, 2008).
Customer Value Perspective
The strategic objectives include; on time delivery of the
products to the customers. The rate of delivering goods is
increased by 50%. The business will ensure that goods are
delivered on time and at the right time to the customers. It is
achieved by developing excellent distribution channels (Porter,
2008).
Develop a customer partnership with the business to ensure
customer retention. It will be reached by ensuring that 90% of
the customers are retained. It is made by making customers part
of the business so as to fill the ownership. When the customers
are kept, the business will gain more profit and larger market
share (Fahey, 1998).
Add the client value in the market. The value of the customer is
increased by 10% to ensure they are the best in the market. The
customer with a complete value will remain satisfied and,
therefore, be then part of the business. It will boost the
reputation of the company in the market for a satisfied customer
will talk about the goodness of the business.
Internal Operations Perspective
Improve the production excellence of the business. The cycle
time will reduce by 10% of the previous time. The production
cycle will take less time than before. The production yield will
increase by 10% since the delay in the production process is
eliminated. There is the rise in the productivity design. The
engineering effectiveness becomes more efficient by 10%. The
product quality will also increase by 10% since the best raw
materials are used in the production of the end products.
Learning and Growth
Increase the employee’s retention by 5%. It indicates that

4. employees will remain in the business fro a good period.
Modify the nature of organizational culture. The situation will
promote new habits and teamwork and develop a technological
system. The organization systems will be amended and changed
into the technical systems by 20% in the business. The
technology will promote efficiency in production and customer
service delivery.
Communication plan
The Purpose of Strategic Objectives
According to Fahey (1998) the strategic objectives show the
ambitions of the business. They serve to show the primary goals
and target of the organization that can be achieved by running
the company in the most success manner. The strategic
objectives act as a plan, steps or guideline that makes the
company realizes its goal. It is a selection of how to achieve the
targeted goal. The objectives bring the organization unity since
people will work towards the same direction.
The audience
They include; all employees in the organization since they
are the ones to play a great role in accomplishing the business
strategies. The shareholders, so that they can have a good
highlight of where the market is ending to when the business
seems to move in the right directions shareholders will support
it financially by buying more shares. Communicate to the
customers, so that they can have trust in the business goods and
services. Customers will tend to like the business with an
excellent vision and mission. They will like to be associated
with a company that is moving in the right direction.
Communication channels
The purpose of the objectives can be communicated during the
team meetings. It is important since it is an opportunity that you

5. can meet all the members of the business. Such moments can
help to build the better involvement and understanding of the
objectives by the members. The objectives can be passed
through the emails from one person to another since emails can
help to give information to a large number of persons. The
intranet is also good since it is fast and consistent.
The videos are excellent since they are entertaining and creative
to attract more listeners. The magazines will pass the message
to the whole company with a correct and consistent data. The
audio is good for the busy and remote team since they give clear
and true information. The use of noticeboards will ensure that
most the people especially the visitor are aware of the strategic
objectives. The noticeboard are placed in a strategic place
where every person sees and read the information written on it.
References
Porter, M. E. (2008). Competitive advantage: Creating and
sustaining superior performance. Simon and Schuster.
Srivastava, R. K., Shervani, T. A., & Fahey, L. (1998). Market-
based assets and shareholder value: A framework for analysis.
The Journal of Marketing, 2-18.
l
PROFIT AND LOSS BY SEGMENT -PRE-ABC

6. Colombo Soft-Serve Frozen Yogart
Income Statement
Category Impulse Segment Yogart Shops
Line Total
# Sales in Cases 1,500,000 1,200,000 300,000
I Sales Revenue $ 29,850,000 $ 23,880,000 $ 5,970,000
2 Less: Price Promotions 4,500,000 3,600,000 900,000
3 Net Sales (Line 1 -2) $ 25,350,000 $ 20,280,000 $ 5,070,000
4 Less: Cost of Goods Sold $ 17,250,000 13,800,000 3,450,000
5 Gross Margin = Net Sales-COGS (Line 3 -4) $ 8,100,000 # $
6,480,000 $ 1,620,000
6 Less: Merchandising Expenses 1,725,000 1,380,000 345,000
7 Less: Selling General & Admin. Expenses 1,185,000 948,000
237,000
8 Net Income (Line 7 -8 -9) $ 5,190,000 # $ 4,152,000 $
1,038,000
ACTIVITY BASED COSTING ANALYSIS
Colombo Soft-Serve Frozen Yogart
Income Statement Cost Impulse Yogart
Category Cost Per Segment Shops Total
Impulse Segment Yogart Shops Driver Driver Quantity Quantity
Quantity
Line Total

7. # Sales in Cases 1,500,000 1,200,000 300,000
I Sales Revenue $ 29,850,000 $ 23,880,000 $ 5,970,000
2 Less: Price Promotions 4,500,000 3,600,000 900,000
3 Net Sales (Line 1 -2) $ 25,350,000 $ 20,280,000 $ 5,070,000
4 COGS (ingred., pkg. & storing) $ 14,250,000 $ $ Cases $9.50
per case 1,200,000 300,000 1,500,000
5 COGS (pick pack & shipping) Pallets 300,000 Pallets $75 per
pallet 800 3,200 4,000
6 COGS (pick pack & shipping) Ind. Cases 2,700,000 Ind. Cases
$2.25 per indocase 1,140,000 60,000 1,200,000
7 Total Cost of Goods Sold (Line 4 + 5 + 6) $ 17,250,000 $ $
8 Gross Margin =Net Sales -COGS (Line 3 -7) $ 8,100,000 $ $
9 Less: Merchandising Expenses 1,725,000 Kits $500 per kit
3,360 90 3,450
10 Less: Selling General & Admin. Expenses 3,900,000 Time %
of time 99% 1% 100%
I I Net Income (Line 8 -9 -10) $ 2,475,000 $ $
Chapter 05 - Activity-Based Costing and Customer Profitability
Analysis
5- 2 Colombo Soft-Serve Frozen Yogurt
In 1994, General Mills Incorporated, a $6 billion consumer

8. goods company, acquired Colombo Frozen Yogurt.
General Mills Inc. (GMI) believed they could add Colombo
frozen yogurt to their existing product lineup to increase
net sales with little addition in marketing cost.
, Frozen yogurt is sold through two distinct segments -
independent shops and impulse locations such as cafeterias,
icolleges, and buffets. Frozen yogurt is the main business for
the shops whereas yogurt is incremental to the impulse
locations' main business. GMl's large sales force already served
the impulse market.
The [mancial results in the first couple of years were mixed.
Earnings increased slightly and then dropped each year
even though sales volume was relatively flat. In total,
merchandising costs dropped, while pricing promotion rates
escalated. The GMI sales force focused on the impulse segments
and pricing promotions were believed to be driving
volume increases. However, volume in the shop segment
declined at alarming rates and there was widespread
dissatisfaction in the sales organization. While GMI knew sales
by segment, they didn't track costs by segment.
Instead costs were allocated based on sales dollars. The
situation was ripe for a clearer look using ABC methods..
i
! TODAY'S FROZEN YOGURT MARKET STRUCTURE:
When Colombo Yogurt Company began marketing soft-serve
frozen yogurt in the early 1980's, their main
distribution was through independent yogurt shops. In the early
90's, they faced competition from franchise
operations such as TCBY and Freshens that replaced many of
the independent yogurt shops. And the market
changed as Foodservice operators such as cafeterias, colleges,

9. and buffets started to add soft-serve yogurt to their
business. By the late 90's, these Impulse locations accounted for
2/3 of the soft-serve market.
:In the late 90's, Shop sales began to increase with the addition
of distinctive new products such as smoothies,
boosters, and granitas. The Shops make their living from the
soft-serve business and must innovate or go out of
business (as thousands have done in the last decade). On the
other hand, the Impulse locations make their living
from other items and the soft-serve trade is only performance
topspin. These firms are unwilling to take any risk
(new equipment or extra labor) to serve highly differentiated
products like smoothies or granitas.
THE GMI-COLOMBO MARKETING PLAN:
;The GMI Foodservice Division markets brands such as
Cheerios, Yoplait, Betty Crocker, Gold Medal Flour,
! Hamburger Helper, Pop-Secret, and Chex Snack to Food
Management Firms, Hospitals, and schools. Colombo
yogurt was added to this product lineup and the Foodservice
sales force covered both Shop and Impulse locations.
Salesforce: Colombo's salesforce was merged into the
Foodservice salesforce. Customers were reassigned to
salespeople who already serviced that geographical area. The
salespeople varied in their reaction to the product.
Some found shops easy to sell to while others avoided the shops
despite the possible lost commission. Many spent a
lot of time helping their impulse customers understand how to
use the machinery.
. Merchandising Promotions: Colombo traditionally charged the
Shops for merchandising that was large scale and
; eye popping (neon signs). The Shops used these signs to draw

10. customers inside. GMI chose not to charge for
merchandising and to provide the same large scale
merchandising to both Shops and Impulse locations. Shops were
very interested in the kits while many Impulse locations didn't
even hang them up.
Pricing Promotions: Pricing promotions are a mainstay ofGMI's
impulse location approach. GMI's salesforce
generally used these promotion events as an opportunity to visit
their accounts and take advantage of the occasion to
meet service needs and sell other products that may not be
featured.
5-8
Chapter 05 - Activity-Based Costing and Customer Profitability
Analysis
r"' GMI made price promotions available to both segments of
the market. While the deals were typically around $5 per
case, they averaged $3 per case against all the volume shipped
during the year. GMI marketing knew price was not a
major decision factor for Shops and they did not target pricing
promotions to them. However, Shops were aware of
the promotions and took advantage of them.
THE BUSINESS STATUS - PRE-ABC:
PROFIT AND LOSS BY SEGMENT - PRE-ABC
Cost of Goods Sold is made up of$14,250,OOOfor ingredients,
packaging, and storage and $3,000,000 for pick/pack
and shipping. Since the product is the same across segments, the
cost to produce should be the same. However,

11. pick/pack and shipping costs were found to vary with whether
or not the order was for a full pallet. Full pallets cost
$75 to pick and ship whereas individual orders cost $2.25 per
case. There are 75 cases in a pallet and the segments
, differ in their utilization of full pallets as shown below.,
ABC ANALYSIS OF MERCHANDISING:
t
:Merchandising costs consist mainly of kits costing $500 each.
A review of where the kits were sent indicated that
3,450 kits were sent out and 90 of them were sent to shops.
ABC ANALYSIS OF SELLING, GENERAL AND
ADMINISTRATIVE:
Since sales representatives service several products, their costs
are allocated to the various products based on gross
sales dollars. GMI gave diaries to 10% of the sales force in
randomly selected markets of the country and asked
! them to track their time in activity classifications for 60 days.
The diaries indicated that sales reps spent almost 3
!times as much time on the yogurt than GMI had estimated. The
total allocation to Yogurt jumped from $1,185,000
to $3,900,000. Of their time spent on Yogurt, only 1% of the
time was spent on the shops.
5-9
- - - ---
Category Impulse Segment Yogurt Shops
Total

12. Sales in cases 1,200,000 300,000 1,500,000
Sales revenue $23,880,000 $5,970,000 $29,850,000
Less: Price Promotions -$ 3.600.000 -$ 900.000 -$ 4.500.000
Net Sales $20,280,000 $5,070,000 $25,350,000
Less: Cost of Goods Sold -$13.800.000 -$3.450.000 -
$17.250.000
Gross Margin $ 6,480,000 $ I,620,000 $ 8,100,000
Less: Merchandising -$ 1,380,000 -$ 345,000 -$ 1,725,000
!Less: SG&A -$ 948.000 - $ 237.000 - $ I.I 85.000
;Net income $ 4,152,000 $1,038,000 $ 5,190,000
ABC ANALYSIS OF COST OF GOODS SOLD:
""
Impulse Segment YOgurtShops Total
Cases in full Pallets 60,000 240,000 300,000
Individual cases 1,140,000 60,000 1,200,000
Total cases 1,200,000 300,000 1,500,000
Group Exercise
Using the Chart of Accounts view of the receiving department,
coupled with the activity analysis
and the following interview develop activity costs for the
receiving department.
Receiving Department Interview

13. Supplies – Approximately 60% of our supplies budget is spent
on receiving forms. The rest is 10%
for move tickets and 30% for expedite forms.
Depreciation – I know $6,000 is for the forklift. The rest is for
the PC we use 50/50 between
logging receipts and keeping track of expedites.
Overtime – That’s easy. It’s all for expedites.
Salary and Fringes – 40% of our time is spent receiving
material, 40% moving material, and 20%
expediting material.
All other – The rest of the budget is not really traceable to any
of the activities. Why don’t you
spread it on the time percentages?
To Do
1. Trace each cost to the activities.
2. Calculate the gross cost of each activity and the cost of each
output measure.
3. Contrast the traditional Chart of Accounts view to the
Activity Accounting view.
Activity Define

14. Value/Non-Value
Define
Business Process
Primary or
Secondary
Receive Material
Value Procurement Primary
Move Material Non-Value Manufacturing Primary
Expedite Material Non-Value Procurement Primary
Trace Cost to Activities
(Activities Consume Cost)

15. Chart of Accounts View Activity View
Receiving Department Tracing
Method
Receive
Material
Move
Material
Expedite
Material
Supplies
$10,000 Percent %
Depreciation
8,000 Analysis
Overtime
5,000 Analysis
Salaries

16. 40,000 Time %
Fringes
10,000 Time %
All Other
5,000 Time %
Total $78,000
Determine Output Cost
ACTIVITY
COST TYPE VOLUME COST
Receive Material

17. # of Receipts
500
Move Material
# of Moves
200
Expedite Material
# of Expedites
100
1
Running head: NEW DIVISION ANALYSIS
4
SWOTT ANALYSIS
SWOTT ANALYSIS

18. Jerry Seigle
Fredric Hibbler
BUS 475
5-25-2015
SWOTT ANALYSIS
Stacey Ques limited is a proposed new division. A swott
analysis was done to identify how the division would operate
best and whether it was fit to exist in its current surroundings.
The analysis was as follows. (Egger 2008).
EXTERNAL FORCES AND TRENDS CONSIDERATION.
STRENGTHS
· Legal and regulatory framework-the laws in the area are quite
favorable for the business division.
· Innovation- the locals are not that innovative thus they will be
interested by the presence of the division in the area.
WEAKNESSES
· Economic-the financial standing of the people in the region is
quite low as most of the people in the area rely on manual jobs
as a source of income.
· Technology-the division is making use of latest technology
which is not very familiar to the locals.
OPPORTUNITY
· Environmental-the area has quite favorable weather and is at
close proximity to raw materials.
· Global-the operation of the division in the area will open it up
to other investors.
THREAT
· Competitive analysis-other entities in the area have an already

19. established clientele who are familiar with the entity’s way of
operation.
TREND
· Social-most of the young people in the region tend to leave the
area after high school thus clientele is mainly composed of
middle aged people.
INTERNAL FACTORS AND TRENDS CONSIDERATION
STRENGTHS
· resources- the division has adequate
Resources to facilitate its operation in the area.
· Leadership- the management of the team is competent and
efficient.
· Processes and systems- the processes and systems in the
division are well defined and elaborate.
· Strategy-the strategies developed blend well with the division.
WEAKNESSES
· Structure-the rigid structure of the division makes it less
flexible.
· Strategic capabilities-this is a weakness in the management
when it comes to implementing the strategies developed.
OPPORTUNITY
· Innovation- the team of employees can easily develop ideas to
suit the running of the business in the given environment.
· Goals-overall goals of the business provide an avenue to be
more creative.
THREAT
· Culture-beliefs of most employees are contrary to those of the
locals.
TREND
· Technologies-the division makes use of new technologies that
are developing daily.
· Intellectual property-these are on a high increase in the
division.
SYNOPSIS OF FORCES AND TRENDS

20. The economic status of the region is low as great portion
of the population rely on manual labor as a source of their
income therefore they do not earn a lot. Their spending is also a
bit low which may pose a challenge to the business. However,
the legal framework is quite favorable as not many procedures
have to be followed for one to do business in the area. This will
in turn cut down the cost of operation of the division in the
area. (Fritsch & Falck 2006)
The diverse nature of the management enables it to be
flexible in their decisions and implementation of the business
policies .This is because a 60% of the members of the managing
committee are young people in their mid-30. This works well
for the division as it is easy for it to adapt to changing
situations in the environment and within the business unlike if
the management had a majority of old people. The management
is able to make prompt decisions in case of an emergency or in
the event of a failed project. (De Brentanin 1991)
The close proximity of raw materials required for
manufacture of products is an advantage to the business as this
reduces the cost of transportation to the division. The amount of
capital that is saved will be used to improve the process of
manufacture and enhance the storage conditions of the finished
goods. The availability of raw material will also mean that there
will be increased production and therefore the division will
increase its labor to cater for this. The increase of work
opportunities will encourage more youth to stay me the region
which will help to develop a diverse brand of products which
will cut across different age groups. Several state of the art
warehouses will be put up to accommodate the end products.
Due to the economic status of the locals, 70% of the finished
products will be distributed to nearby areas which will provide
greater market for the goods. Transport of these goods will be
through rail as it is readily available and is cheaper for the
business. Samples will also be given to employees which will
act as a form to motivation. (Fritsch & Falck 2006)
The major opportunity that the company faces is the high

21. availability of raw material for production in the region. This
will greatly propel the company to earn more returns. Also the
legal framework of the area which allows for easy business
activities also is an added advantage to the business (De
Brentani 1991).however, being that the locals do not have much
exposure to current technologies, it may be difficult for them to
readily accept the company in the area. They may prefer to
remain with the companies which they are familiar with thus
increasing the competition.
The lack of exposure to current technology of the locals
may be due to the kind of facilities present in the area. There
are few schools which provide only basic education to the
students in that there is little use of the internet and the schools
are not modernized. This in turn limits the exposure of the
students to only that which is available locally. Therefore most
young people who are not able to secure work in other areas
come back and are forced to do manual jobs and survive on low
income. Having this in mind a research was undertaken with the
main question being how adaptive were the locals to new forms
of technology (Page 2007).
The circumstances that lead to the low exposure of the
locals are poor levels of education the area and lack of
investment of well-developed companies in the region. These
circumstances and not within the control of the locals but purely
lie on the government which has the capability to raise the
levels of education and create avenues for other investors in the
region. Classification of these circumstances makes it easier to
understand the issues being faced in the area as the
classification simplifies the reality on the ground and helps for
easy development of a solution. The accuracy of the importance
of the classification is quite high as this provides a framework
of how the company can come with a policy to deal with the
issues facing it. Also if the importance of the classification is
not put into consideration then the classification will not be
effective (Wood 1991).

22. References
MKT, M. P. P. I., Barker, M. K. C., Fenstra, D., Ringer, T., &
Egger, K. W. (2008). Organizational Overview. Marketing.
James, S. D., & Kosicki, G. External Environment Analysis
Legal and Regulatory Analysis.
Fritsch, M., Brixy, U., & Falck, O. (2006). The effect of
industry, region, and time on new business survival–a multi-
dimensional analysis. Review of industrial organization, 28(3),
285-306.
De Brentani, U. (1991). Success factors in developing new
business services. European Journal of marketing, 25(2), 33-59.
Hair, J. F., Money, A. H., Samouel, P., & Page, M. (2007).
Research methods for business. Education+ Training, 49(4),
336-337.
Wood, D. J. (1991). Corporate social performance revisited.
Academy of management review, 16(4), 691-718.
Running head: INNOVATION IN BUSINESS
1
INNOVATION IN BUSINESS
7
Innovation in business
Jerry Seigle
Fredric Hibbler

23. 5-17-2015
For any kind of business the implementation of a small business
innovation research (SBRI) programs is very key to business
success since it enables the business to remain at the
competitive edge. The innovation program in a business
stimulates technological innovation among small private sector
businesses as the same time providing the government with
cost-effective new technical yet scientific solutions to various
challenging mission problems (Committee for Capitalizing on
Science, Technology, and Innovation, 2009). At the state level,
such innovation are likely to aid the USA in stimulation its
economy through encouraging small businesses to market
innovate technologies in the private sector.
Our company has been serving various consumers with fruit
bouquets to numerous consumers nationally and internationally
for the last one decade. Currently we would wish to expand our
business in an innovative manner through the inclusion of
handcrafted fruit arrangements in addition to gourmet chocolate
dipped fruits to a number of fetes and occasions such as
birthdays, anniversaries, graduation, get well also
congratulations to business events besides client gifts. The new
division will be offering the purchasing operations of bouquets
through means of customers ordering them online or by phone.
This will be in line to our aim of achieving the company’s
mission of being the creator and global leader in the fruit
bouquet category. In this spirit, we are planning to lead all
marketing, advertising, sales promotion, e-commerce, customer

24. insights, and store design also customer loyalty programs for
the various franchising chains located globally. If this is
achieved in our business, then for sure we could have made
milestones in customer relationship management.
The best kind of business model that can be applicable for our
enterprise’s new division to achieve the foresaid mission is the
manufacturer model that is popularly referred to as the direct
model. The basic idea behind this is that it creates its product
which in turn reaches the consumers directly and thus a
compress distribution chain is foreseen. This kind of model is
thus hailed for its efficiency, improved kind of consumers’
service as well as a better understanding of the customers
preferences. Closely enter-twined with this model will be the
use of ERP system as part of our management information
system. The main function of an ERP in this new division is
basically helping in top-management planning especially by
aiding in strategic planning in the financial planning and
business imperatives; help in sales planning through marketing
plans; utilized in production planning through capacity planning
(John, 2012). Our company is striving to attain profitability
through the efficient and economical usage of various resources
as well as labor. Through a financial roadmap, there is a proper
allocation of resources so that business objectives are achieved
as well as our mission.
In the urge of maintaining customer relationship, we will be
measuring their satisfaction and expectations. Various metrics
are used in trying to measure customer satisfaction also
expectations in commercial and industrial enterprises in a bid to
gauge the viability of the business. Through continuous
measurements, the degree to which a product meets or exceeds
the customer’s expectations about the product is well evaluated.
The basic understanding on how customer expectations about
the product and how they are formed are derived from here. It is
also good to carry out continuous measurements since customers
may hold many different types of expectations in the form of
ideal, normative, experience-based and minimum tolerable

25. expectations depending on the situations surrounding them (
Ferrell & Michael, 2012). Additionally, there is a connection
that cp-exists between expectations and alternatives in a wide
spread variety of market products makes serving customers in
this kind of highly commoditized markets so challenging.
In contrast to reengineering, the new division’s management
will use the idea of continuous improvement as it seeks for
ways of improving the various business processes at the
company level as well as adding value to a number of products
and services. In the process of continuous change will definitely
result into customer satisfaction and loyalty apart from ensuring
that long term profitability for the company. In fact, my level of
approach will be a little bit different form manufacturing
companies which employ continual product changes and
improvements such that my approach will be stemming from
blue ocean strategy to acquire the desire market segmentation.
Another implement will be a customer database. A part from
the bio-data that will be contained in the database, there will be
also inclusion that will depict the customers preferences and the
frequency of visits they come to buy from the organization. I
will be using the internet to connect to customers apart from
putting busloads of efforts in the creation of a 360-degree,
holistic view of each and every customer. I will be collecting
customer information at every point where I shall contact a
customer-sales, loyalty programs, surveys, direct mail
advertisings, sales promotions (contests and sweepstakes, not
forgetting various forms of affiliate programs pertained to fruit
and chocolates merchandising). From this type of information, I
will use it in the creation of customized communications
together with product offerings for each of the approximately 40
million customers that will be in our database.
In analysis of the database information, I will employ the use of
a sophisticated type of segmentation system which will be
analyzing various transactional behavioral pattern sin the form
of regency, the frequency of visits also monetary. This kind of
system all the same combines these measures with gift buying

26. behaviors. The foresaid information will then be linked to every
customer’s psychographic profile so as to create targeted
messages for each customer segment. From here, our company
will exploit varied range of metrics- be it financial, customer
retention also acquisition, brand awareness, purchase intentions,
as well as customer recommendations in measuring our
performance over time.
In a bid to increase customer loyalty, it is in my goals to launch
a Fresh Rewards, which is basically a point-based loyalty
program. Under this kind of platform, our customers will
earning a point for each dollar that they spend, and then
afterwards get a Fresh Reward pass through emails once they
accumulate a total of 200 points. There will also be higher
tiered sorts of programs for the customers who may spend $400
or $800 per year. Despite the program increasing customer
loyalty, this Fresh Rewards program on the same line will allow
the company to gather more in-depth information from the
customers. In line with marketing strategy, I will launch even a
stronger social bond with customers who are located all over the
global platform through launching applications for multiple
smart phones also online store through Face book.
I too understand that the key to success will be the ability to
integrate also leverage the massive amount of data that I will be
collecting from our customers. I will also consider the old-
school approach towards understanding customers. My training
as a social worker has aide me in understanding the need for
solid relationship with our consumers. I will be going into the
field to talk with our customers. During special events such as
Mother’s day and Valentine’s Day, I with other Executive shall
answer phone calls; do a deliverance of products, apart from
working within the company retails stores. I shall put is clear to
my counterparts that our competitors are all about the sales, we
will be about relationships. We are aiding our customers in
connecting with vital individuals in their lives by means of
sharing drinks that maybe be created also designed for
specified relationships, occasions, also sentiments. This will be

27. our difference.
In getting to our customers, I will be inclining into the use of
blue Ocean Strategy that is enhanced through social networking.
This incorporates systems such as 3.0 social media technologies
in the form of WhatsApp, face book, Bebo alongside LinkedIn.
Such systems allow members of a specified site to learn about
other member skills, talent, knowledge and preferences. The
blue ocean move here will be discussed in line with YouTube.
Potentially a large number of viewers that take action (word of
mouth marketing) is the attraction of internet campaigning. A
well-placed link on a popular website, or passed from friend to
friend, might generate millions of page hits very fast. Thus, the
influence of You-tube has of recent caught the attention of
numerous marketers. Through tapping into the You-tube
facilities, that is, individuals that share common kind of
identification, enterprises find it easy in mobilizing interest via
what can be termed as viral-marketing techniques.
An important aspect of the blue ocean move is the sense that it
rejects the basic tenet of the conventional strategy, that is, the
idea that a trade-off does exist between value and cost. This
thus means that the companies do create either greater value for
customers at a higher cost else they create reasonable value at
lower kinds of costs. Thus, strategy is a choice made between
differentiations alongside a low kind of cost. Based on the
information there-before, it is crystal clear that the blue ocean
move posse’s advantages such as creation of uncontested market
space. Secondly, they make the competition in any kind of
market segmentation irrelevant since new products are created
(Wolfgang, 2015). The blue ocean move is able to create yet
capture new demands in the market through the coming along
with new kinds of products as well as services. Another
importance fact that blue ocean strategy is tied with is the fact
that it breaks the value or cost trade-off. Finally, the blue ocean
technology aligns the whole system of any enterprise’s activity
in the pursuit of differentiation in combination with low cost.
REFERENCES

28. Committee for Capitalizing on Science, Technology, and
Innovation: An Assessment of the Small Business Innovation
Research Program, Policy and Global Affairs, National
Research Council.2009.An Assessment of the Small Business
Innovation Research Program at the Department of Defense.
National Academies Press
Wolfgang D . 2015. The Concise Encyclopedia of
Communication. John Wiley & Sons
Ralph S & George R.2009. Principles of Information Systems.
Cengage Learning
John S .2012.Statistical Process Control. Routledge
Ferrell O & Michael H.2012. Marketing Strategy.Cengage
Learning
Business Model and Strategic Planning Outline
BUS/45 Version 5
1
University of Phoenix Material
Business Model and Strategic Planning Outline
I. Title Page
II. Table of Contents
III. Executive Summary
IV. Business Model and Strategic Plan Part I: Existing
Business or New Business Division; Vision, Mission, and Value
Proposition
V. Business Model and Strategic Plan Part II: SWOTT Analysis
– Internal and External Environmental Analysis; Supply and
Value Chain Analysis
VI. Business Model and Strategic Plan Part III: Assumptions,

29. Risk and Change Management Plan; Summary of Strategic
Objectives; Balanced Score Card and its impact on stakeholders;
the Communication Plan
VII. Conclusion
VIII. Reference Page