This document provides an overview of a company called Healthy Alkaline Water 4U. It is a privately owned company that sells alkaline water. The company aims to provide high quality hydration products and excellent customer service. It also discusses trends in the non-alcoholic beverage industry, including consumers seeking functional benefits from drinks beyond just hydration. A SWOT analysis is then presented, identifying strengths such as quality products and customer service, weaknesses like limited resources, opportunities in growing health-conscious markets, and threats from larger competitors.
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Assignment 3 Operation, Technology, and Management Plan (with Fin.docx
1. Assignment 3: Operation, Technology, and Management Plan
(with Financials)
Due Week 8 and worth 100 points
This assignment consists of two sections: the Word document
and your business plan financials. Note: You must submit both
sections as separate files for the completion of this assignment.
Use the NAB Company Portfolio (see Required Course Files in
Week 1).
Write a 4-8-page paper in which you provide the following
information below.
Operations Plan (1–2 pages)
Note: Remember to assign a dollar amount to each operational
cost you find, as you will need these figures for your income
statement and cash flow in Week 8.
1. Create an operations plan for your NAB Company using the
template in the text as a guide (p. 214 | Operations Plan
Preparation Form). Extract appropriate information from the
NAB Company Portfolio, where applicable. Other required
items in the template should be filled in using your personal
preferences.
· Note: Most of the research pertaining to the hints provided
here can be found in the NAB company portfolio.
· Hints: Consider whether you will rent or buy your facilities or
outsource production to an existing company.
· Hints: One of your biggest expenses as a startup non-alcoholic
beverage company will be transitioning from a small-batch
prototype of your beverage to production on a large scale.
Research the equipment you will need (vats, refrigerators,
burners, ovens, bottling equipment, and so on), whether you
will rent or buy, how you will maintain and clean the
equipment, and so forth. Consider how you will ensure quality
control. What capacity do you intend to reach?
· Hints: Deliberate your inventory control. Where do your
supplies come from and what is your turnaround time to produce
2. your beverage once you have received an order?
· Hints: Consider your distribution method. Refer back to your
notes for the SWOT analysis assignment in Week 2 of the class.
· Hints: How will you stay abreast of new developments in your
industry? What new products do you have in development now,
in addition to your flagship product?
2. Describe your research and development activities and
explain how they will contribute to the company.
Technology Plan (1–2 pages)
3. Create a technology plan for your NAB Company using the
template in the text as a guide (p. 227 | Technology Plan
Preparation Form). Extract appropriate information from the
NAB Company Portfolio, where applicable. Other required
items in the template should be filled in using your personal
preferences.
· Hints: Consider the type of technology your company will use
to conduct the following activities: managing personnel; taking,
fulfilling, and tracking orders; managing inventory;
communicating with customers and providing customer service;
and producing your beverage.
Management and Organization (1–2 pages)
4. Create a management plan for your NAB Company using the
template in the text as a guide (p. 248 | Management Plan
Preparation Form). Extract appropriate information from the
NAB Company Portfolio, where applicable. Other required
items in the template should be filled in using your personal
preferences.
5. Using the flow charts on page 242 as a guide, outline your
company’s management hierarchy. Note: Charts or diagrams
must be imported/included in the MS Word document.
Create an ethics and social responsibility plan (1-2 pages)
1. Describe the ways in which your company is committed to
being a good corporate citizen.
· Hints: Consider the following areas:
· Creating jobs
3. · Following the laws of every jurisdiction in which your
company operates
· Fair and honest treatment of employees
· Non-discrimination of employees and increasing diversity of
your work force
· Hints: If your company is designed as a social venture—in
which you have a primary purpose of achieving a social or
environmental goal—describe what that goal is and what aspects
of your company are designed to reach that goal. Provide a
rationale for why you have or have not chosen this to be a social
venture.
2. Discuss how your company’s activities will affect the
environment and identify the steps you will take to mitigate any
negative impacts.
· Hints: As a beverage company, consider such issues as your
choice of packaging, disposal of bottles/packages by consumers,
and your use of resources, such as water in areas where water
may be scarce.
3. Determine any health issues/claims related to the
product you are making, whether negative or positive. Suggest
the strategy your company will use to mitigate any negative
issues and to ensure any positive claims are true.
Section 2: Business Plan Financials (MS Excel worksheets
bundled with course textbook)
For year one, submit the entire completed “Business Plan
Financials” Excel document based on feedback from week 7
discussion and information from your business plan.
Format your assignment according to these formatting
requirements:
1. Cite the resources you have used to complete this
exercise. Note: There is no minimum requirement for the
number of resources used in the exercise.
2. The paper must be typed, double-spaced, using Times New
Roman font (size 12), with 1-inch margins on all sides;
references must follow APA format. Check with your professor
for any additional instructions.
4. 3. Include a cover page containing the title of the assignment,
the student’s name, the professor’s name, the course title, and
the date. The cover page and the reference page are not included
in the required page length.
The specific course learning outcome associated with this
assignment is:
· Create operations, technology, and management plans for a
company.
******IMPORTANT INSTRUCTIONS ON HOW TO FOLLOW
THE PAPER NEEDS TO BE SET UP*******
Assignment 3 expectations
NO PASSIVE VOICE
PAGE 1-TITLE PAGE
PAGE 2- OPERATIONS PLAN (1 or 2 PAGES)
PAGE 3-TECHONOLOGY PLAN (1 or 2 PAGES)
PAGE 4&5- MANAGEMENT PLAN (2 pages)-INCLUDES THE
ORG CHART AND START EXPLANING ON PAGE FIVE
PAGE 6- ETHICS AND SOCIAL REPSONSIBILITY PLAN (1
PAGE)
PAGE 7 or 8-REFERENCES
Turn in along with assignment 3 paper
- Income statement (IncSt)
- Balance sheet (BalSht)
- Statements of cash flows (CshFlw)
Running head: ASSIGNMENT 2 1
ASSIGNMENT 2 5
5. Assignment 2: Marketing Plan
Daniel Hernandez
BUS 599 - Strategic Management
Strayer University
Dr. Theresa Poussaint
October 31, 2019
Target Market
Healthy Alkaline Water 4U retail location is in a strip mall in
Lorton, Virginia. This is a residential area with several
restaurants, grocery stores, education centers, veterinary
services, hair salon, and several other variety stores. Lorton is
located in Fairfax County, Virginia and include surrounding
areas of Alexandria, Springfield, and Mount Vernon. According
to the United States Census Bureau (2017), the estimated
population of Lorton as of 2017 is about 20,000 with median
age 34.7 for male and female. The American Community
Survey (2017), noted in 2013 to 2017, the amount of people per
household averages at 3.07. The medium income in Lorton
stands at $100,356, with an estimated annual growth rate of
0.471%, which is $14,000 less than the state of Virginia
(Census Bureau, 2017). The poverty rate in Lorton, Virginia is
estimated at 6.2% (Census Bureau, 2017). According to Census
Bureau (2017), demographics of Lorton includes 39.37% white,
32.75% black, Asian, 17.46%. Other race accounts for 4.62%,
and Native Americans 0.13%. Persons with Bachelor’s degree
or higher amounts for above 45% and high school graduate is
estimated above 93%.
The Lorton area has a high volume of military personnel that
6. appreciates the need for healthful hydration. Healthy Alkaline
Water 4U is targeted to meet the need of people who has an
active lifestyle and want to maintain or improve their health.
The product is packaged for individual sale in 16 ounce bottles
and 5 gallon containers for home delivery. It is conveniently
priced to be affordable to the target audience and meets the
taste and freshness for hydration. The ideal customers include
professional men and women, high school and college students.
This population frequently visits the shopping mall where the
store is located, or they can purchase the product from nearby
grocery stores, or the company’s website for home delivery.
Market Competition
Healthy Alkaline Water 4U’s largest competitor is Essentia
Ionized Alkaline Water which has a Perfect Hydration of 9.5
and claim similar hydration benefits. According to Business
Insider (2019), Essentia is a NAB industry product founded in
1998. Amazon, wholesale clubs, vending machines and
businesses worldwide currently distribute Essentia. Last year,
Essentia reportedly sold almost $2M in retail sales alone that
represents a growth of 59% from retail sales in 2017 (Business
Insider, 2019). Essentia have received several awards over the
years and have over 90,000 retailer’s worldwide (Essentia
Water, 2019). As a small business venture Healthy Alkaline
Water 4U retail store presents a more personalized approach to
customer service, offer taste tests for in store patrons and
money back guarantee for web-based purchases.
In order to remain competitive, Healthy Alkaline Water 4U
must ensure the purity and taste of its product meet the needs of
the customers. According to Billand, Bravard, Chakrabarti, and
Sanangi (2016), companies need to gather intelligence
information to stay ahead of the competition and find gaps in
production or markets to use an advantage. Essentia has
established itself as a premier water source and is easily
available in retail stores and online (Essentia Water, 2019).
The price of a 16 ounces bottle of Essentia water is $0.30 more
7. than Healthy Alkaline Water 4U, which gives the company a
competitive advantage in pricing. Most consumers will choose
the lower price for products with similar taste and benefits.
Healthy Alkaline Water 4U receives support from the military
community and is located just five miles from a large military
base. One distinguishing factor for this company is the in store
customer service reputation, adaptation, price and product
quality guarantee.
Company’s Message
Abrams (2014), stated the reasons customers’ purchase products
are based on five factors, functions, finances, freedom, feelings
and future.
Functions: Healthy Alkaline Water 4U promotes healthful
living, improved cognition and boost energy for customers.
Finances: The product is affordable based on the customers’
demographics and earnings.
Freedom: The product is conveniently located in local grocery
stores and health club facilities with tasting stations.
Feelings: Healthy Alkaline Water 4U offers a crisp clean taste
that brings association to health and longevity. Since a military
veteran owns this company customer, feel a sense of loyalty in
supporting the organization. Customers have a sense of
comradery when they visit the retail location and feel the need
to be supportive as part of the proceeds supports combat
veterans. The retail location also offers free Wi-Fi and jazz
music with surround sound.
Future: Consumer will stay loyal to a product that stands up to
the name and provide proven results. Having the energy to be
productive from the hydration source generate positive
customers review that will in turn drive sales and invite new
customers .
Refresh, Renew, Revitalize: The feeling of satisfaction with the
refreshing taste of Healthy Alkaline Water 4U is the response
the company is aiming to obtain from customers. Customers on
the refreshing taste of the product. The water immediately
8. quenches the thirst and leaves no after taste. The sales team
understands that each person who enters the store is a potential
customer and must receive the best experience and is
completely satisfied to become an instant customer. ‘Refresh,
Renew, and Revitalize ‘assures customers of the company’s
goals in making their hydration experience special. These three
words are on the bottles, the company’s website, brochures, and
banner for events. Customer feedback is used to improve the
marketing and delivery strategies in order to keep customers
satisfied and remain competitive. Healthy Alkaline Water 4U is
a small company and is able to offer a more personalize
approach to vendors. The sales team visit the grocery stores
and gyms that sells the product to ensure the sale space and
display are adequate. This rapport with the managers and staff
of suppliers can be beneficial to the sales of the product.
Marketing Vehicles
Healthy Alkaline Water 4U brochures will use the company’s
website, hosting events in store, health spas, and gyms as
marketing vehicles. These marketing vehicles will give the
opportunity to remain interactive, visible and have low cost,
which suits smaller companies that want to improve its position
in the business. The company hires temporary staff that are and
paid hourly to disseminate brochures. These individuals will
receive a two-hour training before going out on the road to
target locations. The website access to numerous viewers who
are able to get answers to their questions and read reviews from
other customers who have used the product. Hosting an event at
health spas and other venues are another way to increase sales.
In-house events will get people in the door and make them more
likely to become customers.
9. References
Abrams, R. (2014). Successful business plan: Secrets &
Strategies (6th ed.) Palo Alto, CA: Planning Shop.
American Community Survey (2017a). Retrieved from
https://www.transparencymarketresearch.com/non-alcoholic-
drinks-market.html
American Community Survey (2017b). Retrieved from
https://factfinder.census.gov/faces/tableservices/jsf/pages/produ
ctview.xhtml?src=CF
Billand, P., Bravard, C., Chakrabarti, S., & Sanangi, S. (2016).
Business intelligence and
multimarket competition. Journal of Public Economic Theory,
18(2), 248-267.
https://doi/10.111/jpet.12180
Business Insider (2019). Retrieved from
https://www.businessinsider.com/essentia-electrolyte-
water-review-ionized-alkaline-ph-balanced
Census Bureau (2017). Retrieved from
http://factfinder.census.gov/faces/tableservices/jsf/pages/p
roductview.xhtml?src=bkmk
Essentia Water (2019). Retrieved from
https://essentiawater.com/?gclid=EAIaIQobChMI1c_c-
M7E5QIV5B-
tBh2rZgnREAAYASAAEgKUnfD_BwE&gclsrc=aw.ds
10. Running head: ASSIGNMENT 1 1
ASSIGNMENT 1 8
Assignment 1
Company Description and SWOT Analysis
Daniel Hernandez
BUS 599 Strategic Management
Strayer University
Dr. Theresa Poussaint
October 17, 2019
Company Description
11. Healthy Alkaline Water 4U was created based on a passion for
wellness and the awareness of individuals about the benefits of
proper hydration. Healthy Alkaline Water 4U is a privately
owned company by an Active Duty Army Sergeant with over 20
years of service. The comrade that was achieved in working
and training in the military helped to support this business
endeavor. The partnership includes two retired veterans with
the same desire to help others better their health. The main
objective of this company is to provide healthy water that is
refreshing and tasteful that will give the body hydration,
minerals, and antioxidants. The company has an internet
component, is store-based delivery system. In the store-based
facility, consumers have the option to taste test the water source
and check the different alkalinity levels of various popular
water brands.
Mission Statement
The mission of Healthy Alkaline Water 4U is to provide
consumers with the purest quality hydration product and
excellence in customer service. To be the best hydration system
in the nation that enhances the quality of life for individuals
and the leader of a healthy alternative in drinking water.
Healthy Alkaline Water 4U is committed to the provision of
excellent customer service as we gain the trust of our
communities and the nation.
Trends
The profitability of a company depends mostly on the reputation
of its products and customer service. Among the typical trends,
surrounding the non-alcoholic beverage (NAB) industry is the
consciousness of the environment people consume in their
bodies. Consumers realize that what they consumed has become
the central focus of one's health and has taken the onus to
research nutrients that are healthful and toxin-free. (Brooks,
Gortmaker, Long, Cradock, & Kenney, 2017). Consumers look
at the functionality of products; if it is personalized,
fermentation, products sustainability, and alcohol-free.
Consumers are seeking more than just hydration from drinks;
12. instead, they are looking for energy, stress reduction, beauty,
and benefits to their immunity (Ungvarsky, 2017). Coco-Cola
jumped on board to this new cultural shift and added vitamin,
protein, caffeine, and extracts of guarana to their water (The
Coca-Cola Company, 2016). According to PR Newswire (2016),
hydration products that were infused with Cannabidiol jumped
at the chance for its touted pain-relieving properties.
In personalization, PepsiCo gave consumers the option of
stating how they want their products. Consumers have the
option of adding their individual hydration goals using their
smartphones to make choices (Pepsi, 2018). Kombucha is an
organic fermented tea with ingredients such as polyphenols and
probiotics (Ungvarsky, 2017). According to Donskaya,
Drozhzhin, and Bryzgalina (2018), Kombucha supports
cardiovascular and intestinal health. BBC Research estimated
fermented to have a market value of $30 billion that by year
2020 (Marsh, Hill, Ross, & Cotter, 2014). In sustainability,
consumers are leaning towards safeguarding the environment
and the reduction of waste concerning products that are not
considered biodegradable (Abrams, 2014).
Strategic Position
The perception factor is what sets Healthy Alkaline Water 4U
apart from its competitors of customers. Customer Perception
Factors is referred to as the "better, faster, cheaper" options, on
customer’s evaluation of the company’s product and services
relative to the competition (Dotzel, & Shankar, 2019).
According to Abrams (2014), this is the most challenging factor
to achieve and sustain due to the length of time it might take to
build consumer loyalty. For instance, if the company decides to
lower the price, the decision has to be made as to the length of
time the company is able to sustain a loss with reducing prices.
The direct and straightforward way that companies compete
against each other is through price, quality, customer
satisfaction, convenience, societal impacts, and features. These
are the characteristics of customers' perception factors (Abrams,
2014). Costco recently reported a loss for keeping the price of
13. its Rotisserie Chicken to $4.99 (Costco Co, 2018).
Distribution Channels
A combination of wholesale, retail, or direct sales, direct
distribution and online ordering routes are the distribution
channels that are used for hydration products. Most of the
business is conducted through direct sales. Also, utilize
midsize distribution lines that service wholesale corporations
such as Sam's Club and Costco that generally buy in bulk. In
the direct retail sale, consumers enter the store and purchase the
products.
Risks
Alkaline water bears the assumption that it provides health
benefits that reverses the aging process with the restoration of
pH balance. It has the ability to defend the body against
harmful free radicals, cancer-fighting properties, immunity
support, weight loss, cleansing the colon. Several other health-
related benefits are related to this research. There are some
risks in consuming alkaline water. Some of the risk factors
might be strategic, compliance, or operational risk. Strategic
risk of alkaline water includes new development of competitors
in hydration markets (Brooks, Gortmaker, Long, Cradock, &
Kenney, 2017). Risk mitigation includes the company staying
abreast of current research and changing trends and adapt
quickly. Compliance risks might include regulatory agencies
that have restrictions on bottling processes and water testing
process that differs by state laws. These risks are mitigated by
complying with the requirements for each state within the
delivery routes. Operational risks might include things that are
out of the control that could affect production or internet
sources. Insurance protection coverage and data assessment
management could be used to mitigate these risks and minimize
loss.
SWOT Analysis
Strengths
Weaknesses
· Health Conscious
14. · Unique
· Location
· Environmental Conscious
· Brand Reputation
· Competition
· Misrepresentation
· Third-Party
· Limitations
Opportunities
Threats
· Distribution
· Expansion
· Awareness
· Advertisement
· Competition
· Supplies
· Delivery
· Web
· Legal
Strengths: Veterans founded Healthy Alkaline Water 4U and
15. service members understands the need of healthy hydration.
The company has a purification system that is triple-layered for
the prevention of contamination. The location favors easy
access for people who are concerned about their health. It is
located within walking distance to popular health clubs, gyms,
yoga studio and several vegan restaurants. The company
provides reusable water bottles to encourage customers to use it
as to protect the environment.
Weaknesses: Several other hydration companies are located near
the company that also have delivery services and web-based
entities. This boils downs to purity of products, effectiveness
and cost consciousness. If other companies that provide similar
products at a lower cost the company may not be able to gain
market share. Healthy Alkaline Water 4U also outsource home
delivery water canisters to a third party provider. The company
risk product shortages, deficiency in production criteria and
possible contamination. This could result in image defamation
and loss in sales and customers. This new business lacks the
overall expertise in key areas that could affect profitability.
Opportunities: The opportunities for the company include
securing contracts with health clubs, yoga studios, juice bars,
and wholesale clubs. The company will use flyer,
advertisement on local channels as well as pop-up advertisement
on popular web browsing sites. To increase public awareness
on the necessity of ingesting alkaline water and the health
benefits. The company will capitalize on the trend of
customer’s by introducing new products.
Threats: The rise of local competition and possible water
shortages to treatments plants might pose a threat to production.
Larger companies that are able to stockpile products will be
insulated should this occur. The arrival of a new hydration
system in the same location that offers promotion and lower
pricing will present a threat to marketing. The company could
face shortages from suppliers at peak times and bad weather can
affect delivery routes. The possibilities of lawsuits in the event
of issues or health related concerns associated with the
16. hydration products might create negative reviews on the
company and tarnish its image and brand.
References
Abrams, R. (2014). Successful business plan: Secrets &
strategies (6th ed.) Palo Alto, CA: Planning Shop
Brooks, C. J., Gortmaker, S. L., Long, M. W., Cradock, A. L., &
Kenney, E. L. (2017). Racial/ethnic and socioeconomic
disparities in hydration status among US adults and the role of
tap water and other beverage intake. American Journal of Public
Health, 107(9), 1387–1394 doi:
10.2105/AJPH.2017.303923
Costco Co, (2018) Retrieved from
http://investor.costco.com/stock- information/historical-
price-lookup.
Donskaya G. A., Drozhzhin V. M., & Bryzgalina V. V. (2018).
Fermented drinks supplemented with whey proteins and
water-soluble antioxidants. Vestnik MGTU, (3), 471.
https://doi.org/10.21443/1560-9278-2018-21-3-471-480 .
Retrieved from:
https://eds.b.ebscohost.com/eds/detail/detail?vid=1&sid=a
2809b42-8ae8-4408-9d36- d66bd664c308%40pdc-v-
sessmgr06&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0
ZQ%3d%3d#AN=edsdoj.f653a7b112f54d4a8332ce584ba9e9fb&
db=edsdoj
Dotzel, T., & Shankar, V. (2019): The relative effects of
business-to-business: Service innovations on firm value and
firm risk Journal of Marketing, 83(5), 133–152. doi:
10.1177/0022242919847221
Marsh, A., Hill, C., Ross, R. & Cotter, P. (2014). Fermented
beverages with health- promoting potential: Past
and future perspectives. Trends in Food Science & Technology.
38(3), 113-124
Pepsi Cola (2018). Retrieved from www.pepsi.com/en-us/
The Coca-Cola Company. (2016). The invention of coca-cola:
17. Birth of a freshing idea.
Retrieved from http://www.coca-colacompany.com/stories/the-
chronicle-of-coca-cola-birth-of-a-refreshing-idea/
Ungvarsky, J. (2017). Kombucha. Salem Press Encyclopedia of
Health. Retrieved from:
https://search.ebscohost.com/login.aspx?direct=true&db=er
s&AN=125600460&si te=eds- live&scope=site