GCMII: Final Examination STUDENT NAME: ______________________________ DATE: December 6, 2016 Attach all worksheets PART I: PERSONAL FINANCE: Credit Cards 35 total points 1. A credit card issuer calculates interest using the average daily balance method. The monthly interest rate is 2% of the average daily balance. The following transactions occurred during the September 1st – September 30th billing period: Transaction Description Transaction Amount Previous balance: $3,800 September 1 Billing date September 5 Payment $800.00 credit September 9 Charge: Gas $ 40.00 September 19 Charge: Clothing $160.00 September 27 Charge: Airline ticket $200.00 September 30 End of billing period Payment Due Date: October 9th a. Find the average daily balance for the billing period. Round to the nearest cent. $ b. Find the interest to be paid on October 1st, the next billing date. Round to the nearest cent. $ c. Find the balance due on October 1st. $ d. What is the minimum monthly payment due by October 9th? This credit card requires a $10 minimum monthly payment if the balance due at the end of the billing period is less than $360. Otherwise, the minimum monthly payment is 1/36 of the balance due at the end of the billing period, rounded up to the nearest whole dollar. $ e. Given the rate of this credit card, how much of the minimum monthly payment will go towards interest given to the bank? $ f. Given the rate of this credit card, how much of the minimum monthly payment will go to towards reducing the balance? $ g. You decide to pay off the balance over four years. If there are no further purchases charged to the card, how much must you pay each month? $ PART II: PERSONAL FINANCE: Mortgages 40 total points Round all answers to the nearest dollar. A. The price of a home is $120,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: · Option A: 30-year fixed at 7% with closing costs of $2,000 and one point · Option B: 30-year fixed at 6.5% with closing costs of $1,500 and two points Which mortgage loan has the greater total costs (closing costs + the amount paid for points + total cost of interest)? By how much? Answer: Option A 󠄀[ ] Option B [ ] Difference in total costs: $_______________________ OPTION A 30-year fixed at 7% with closing costs of $2,000 + 1 point OPTION B 30-year fixed at 6.5% with closing costs of $1,500 + 2 points Down payment: Closing Costs: Points to be paid: Total Cash to Close: Loan Amount: Monthly Mortgage Amount: Total Amount Paid: Total Interest Paid: Total Cost of Each Option: B. Using the financial industry’s rule of thumb for monthly mortgage limits set at 28% of gross monthly income - how much would the buyer have to earn yearly to be able to afford the option chosen in Part I? Answer: $______________________________ C. How much would the buyer have to deposit today ..

1. GCMII: Final Examination
STUDENT NAME:
______________________________
DATE: December 6, 2016
Attach all worksheets
PART I: PERSONAL FINANCE: Credit Cards
35 total points
1. A credit card issuer calculates interest using the average
daily balance method. The monthly interest rate is 2% of the
average daily balance. The following transactions occurred
during the September 1st – September 30th billing period:
Transaction Description
Transaction Amount
Previous balance:
$3,800
September 1
Billing date
September 5 Payment

2. $800.00 credit
September 9 Charge: Gas
$ 40.00
September 19 Charge: Clothing
$160.00
September 27 Charge: Airline ticket
$200.00
September 30
End of billing period
Payment Due Date:
October 9th
a. Find the average daily balance for the billing period. Round
to the nearest cent.
$
b. Find the interest to be paid on October 1st, the next billing
date. Round to the nearest cent.
$
c. Find the balance due on October 1st.
$
d. What is the minimum monthly payment due by October 9th?
This credit card requires a $10 minimum monthly payment if the
balance due at the end of the billing period is less than $360.
Otherwise, the minimum monthly payment is 1/36 of the
balance due at the end of the billing period, rounded up to the

3. nearest whole dollar.
$
e. Given the rate of this credit card, how much of the minimum
monthly payment will go towards interest given to the bank?
$
f. Given the rate of this credit card, how much of the minimum
monthly payment will go to towards reducing the balance?
$
g. You decide to pay off the balance over four years. If there
are no further purchases charged to the card, how much must
you pay each month?
$
PART II: PERSONAL FINANCE: Mortgages
40 total points
Round all answers to the nearest dollar.
A. The price of a home is $120,000. The bank requires a 15%
down payment. The buyer is offered two mortgage options:
· Option A: 30-year fixed at 7% with closing costs of $2,000
and one point
· Option B: 30-year fixed at 6.5% with closing costs of
$1,500 and two points
Which mortgage loan has the greater total costs (closing costs +
the amount paid for points + total cost of interest)? By how
much?
Answer: Option A 󠄀[ ] Option B [ ]
Difference in total costs:
$_______________________

4. OPTION A
30-year fixed at 7% with closing costs of $2,000 + 1 point
OPTION B
30-year fixed at 6.5% with closing costs of $1,500 + 2 points
Down payment:
Closing Costs:
Points to be paid:
Total Cash to Close:
Loan Amount:
Monthly Mortgage Amount:
Total Amount Paid:
Total Interest Paid:

5. Total Cost of Each Option:
B. 󠄀Using 󠄀the 󠄀financial 󠄀industry’s 󠄀rule 󠄀of 󠄀thumb 󠄀for 󠄀monthly 󠄀
mortgage limits set at 28% of gross monthly income - how much
would the buyer have to earn yearly to be able to afford the
option chosen in Part I?
Answer:
$______________________________
C. How much would the buyer have to deposit today into an
account that earns 4% interest, compounded quarterly to have
enough saved for the total closing costs in 5 years?
Answer $______________________________
PART III: STATISTICS
25 total points
7. Teenage Drug Use
Country
Czech Rep
Denmark
UK
Finland
Ireland
Italy
N. Ireland
Norway
Portugal

6. Scotland
US
(x): %
Marijuana
22
17
40
5
37
19
23
6
7
53
34
(y): % Other Illegal Drugs
4
3
21
1
16
8
14
3
3
31
24
a. Make a scatter plot for the given data.
b. State the correlation between the two variables: Pos Neg
No Correlation

7. c. Determine the correlation coefficient, rounded to two decimal
places, between the percentage of people in a country who are
literate and the percentage who are undernourished.
Answer: _________________
d. Find the equation of the regression line for the percentage of
teenagers who have used marijuana and the percentage who
have used other drugs. Round m and b to two decimal places.
y = mx + b Answer:
_________________
e. What percentage of teenagers, to the nearest percent, can we
anticipate using illegal drugs other than marijuana in a country
where 10% of teenagers have used marijuana?
Answer: __________________
PART IV: EXTRA CREDIT 20
total points
EC1: How much more would you earn in the first investment
than in the second investment? Please round answers to the
nearest dollar.
$50,000 invested for 30 years at 10% compounded
annually Amt. earned: $______________
$50,000 invested for 30 years at 5% compounded monthly

8. Amt. earned: $______________
How much more will be earned in the first investment?
Difference: $______________
EC2 How much money should be deposited today in an account
that earns 9.5% compounded monthly so that it will accumulate
to $10,000 in three years?
Amt. deposited: $___________
EC3: License plates in a particular state display 4 letters
followed by 2 numbers. How many different license plates can
be manufactured for this state?
Answer: _________________________
EC4: A group consists of four men and five women. Three
people are selected to attend a conference. How many ways can
three people be selected from this group of nine?
Answer: _________________________
Fall 2016 | Professor R. Jones Page 1

9. Running head: BUSSINESS PLAN DRAFT
1
BUSSINESS PLAN
19
Business Plan Draft
BUS 599
Avery Clementin
Dr. Daniel Goldsmith
November 29, 2016
TABLE OF CONTENTS
COMPANY DESCRIPTION AND SWOT ANALYSIS 3
COMPANY NAME AND SIGNIFICANCE 3
WEFIT’S 󠄀COMPANY 󠄀MISSION 󠄀STATEMENT 󠄀 󠄀 󠄀 󠄀3
TRENDS IN THE NON-ALCOHOLIC BEVERAGE INDUSTRY
3
WEFIT’S 󠄀STRATEGIC 󠄀POSITION 󠄀 󠄀 󠄀 󠄀4
OVERVIEW 󠄀OF 󠄀WEFIT’S 󠄀DISTRIBUTION 󠄀CHANNELS 󠄀 󠄀 󠄀 󠄀5
RISK ANALYSIS OF WEFIT COMPANY 5
SWOT ANALYSIS 6
MARKETING PLAN AND SALES STRATEGY 6
SALES STRATEGY 7
COMPANY’S 󠄀TARGET 󠄀MARKET 󠄀 󠄀 󠄀 󠄀8
ANALYZE THE TYPES OF CONSUMERS 8
COMPANY’S 󠄀MARKET 󠄀COMPETITION 󠄀 󠄀 󠄀 󠄀10
COMPETITION FACTORS 11
JUSTIFICATION OF COMPANY STRATEGY 11
WEFIT DIET DRINK FIVE FS 12
ETHICS AND SOCIAL RESPONSIBILITY 13
COMMITMENT OF THE COMPANY 13
EFFECTS OF WEFIT ACTIVITIES ON THE ENVIRONMENT
AND HOW TO MITIGATE THEM 13

10. CHOICE OF PACKAGING 13
DISPOSAL OF BOTTLES 14
HEALTH ISSUES 14
COMPANY’S 󠄀PLAN 󠄀TO 󠄀REACH 󠄀THE 󠄀APPROPRIATE 󠄀
MARKET 15
BUSINESS PLAN FINANCIALS 15
STRATEGIC FINANCIAL PLANNING TECHNIQUES 15
BUDGETING 16
PRICING ANALYSIS 16
EVALUATING COSTS 16
CASH FLOW MANAGEMENT 17
PERFORMANCE ANALYSIS 17
REFERENCES 18
Company Description and SWOT Analysis
Company Name and Significance
The name of my Non- alcoholic beverage (NAB) company is
WeFit Diet Drinks. This company deals with the production and
the manufacturing of the non-alcoholic beverages that have zero
calories content. The significance of this beverage is to provide
soft drinks to the people who enjoy the various tastes of
different sodas, but they are no longer willing to indulge in
drinks that have the calories as a measure of ensuring a healthy
lifestyle. This company will provide drinks with different
flavors just like the other sodas. These drinks will aid in
meeting the needs of the people who have decided to adopt
healthy lifestyles such as avoiding the high-calorie content
drinks.
WeFit’s 󠄀Company 󠄀Mission 󠄀Statement
The mission statement of the WeFit Diet Drinks is to
ensure the provision of sophisticated and inviting diet soft
drinks that do not mislay the authenticity of the people health
habits. As a company, we are committed to ensuring that we
meet the various needs of our customers through the provision
of high-quality products, to ensure that they are satisfied and
also provide a high level of professionalism. In addition to this,
we are also aiming at making a difference and ensuring the

11. creation of value as a company.
Trends in the Non-Alcoholic Beverage Industry
One of the trends in the non-alcoholic beverage industry
is that there is a revolution whereby the sugary drinks and
juices sales are likely to slip. This is a result of the increasing
need for the development of new and healthy beverages and
other brands that are much healthier than the prevailing ones. In
the developed countries, many people have become more
sensitive to health issues as a result of the rising rate of
diseases such as obesity that are associated with the poor eating
habits. This happens to be one of the reasons why I chose this
type of the non-alcoholic beverage because I feel that it aids in
the meeting of the needs of the people who have shifted to the
adoption of more healthy habits.
The second reason why I chose this type of non-alcoholic
drink is that it comes in all flavors. Since it acts as a good
source of hydration, it will help in the meeting of the needs of
the people who prefer these flavors instead of having plain
water. This non-alcoholic diet drink has almost similar taste as
the sodas and thus it will help people by meeting their need.
The last reason why I chose this type of the non-alcoholic drink
is that it is cheap and easily portable. This will make it easy for
people to purchase and carry around with them when they are
traveling, when going to school, to work or even for other co-
curricular activities.
WeFit’s 󠄀Strategic 󠄀Position
The objective of the WeFit Diet Drinks is to ensure that
it remains the leading diet beverage in the United States. As a
company, we have come up with a strategic position that aims at
ensuring that the soft drinks are made with the high quality and
healthy ingredients and also that the drinks are dietician
directed to ensure that they meet the health needs of the people.
The beverages strategic position on the basis of convenience
ensures a close look at the trends in the non-alcoholic
beverages, 󠄀the 󠄀company’s 󠄀target 󠄀market, 󠄀and 󠄀environment 󠄀of 󠄀the 󠄀
product and also the strength of the company. WeFit Diet

12. Drinks Company target consumers are the people who are
looking forward to taking healthy drinks and have zero calories
content. The market can be said to be strong because the United
States as one of the developing countries has a high number of
people who are obese. It is through the taking of this drink
instead of the sugary beverages that people will be in a position
to manage their weight. Companies such as Coca-Cola and
PepsiCo are the main competitors in the industry. As a
company, we will make use of different fruits to make the
drinks of different flavors instead of the chemicals that are used
by the competitors to ensure that the beverages are calorie free.
Overview 󠄀of 󠄀WeFit’s 󠄀Distribution 󠄀Channels
The distribution used by the company will be indirect. In
this, we will make use of the intermediaries who are the
wholesalers and the retailers respectively who will then sell the
products to the customers. After the manufacturing of the WeFit
Diet Drinks, the company will distribute them to the
wholesalers who will then sell them to the retailers (Dent,
2011). The retailers are the ones who usually get in touch with
the customers one on one, and they will thus sell to them. The
company will offer refrigerators to all the retailers to ensure
that they can sell cold drinks to the customers during summer.
Risk Analysis of WeFit Company
Three types of risks that the business faces are
compliance, financial and also the competitive risk. For the
compliance risk, the company can mitigate the risk by ensuring
that it complies with the necessary laws as well as the
regulations that apply to it. For the financial, the company
should ensure that it manages all the cash that is flowing in and
out of it in an efficient manner to avoid the deficits. Lastly, to
mitigate the competitive risk, the company should come up with
strategies that will enable it to remain relevant in the market
(Sadgrove, 2005).
SWOT Analysis
One of the strengths of the company is that the segment
of the diet drinks in the market is growing and thus the demand

13. is likely to continue increasing. The strength is that the team
members have great entrepreneurial skills that make them
interact with the consumers effectively and thus gets to know
their needs. One of the weaknesses that the company has is that
the level of competition is very high in the beverages industry.
In addition to this, it will be challenging to produce and
maintain zero calories non-alcoholic beverages. The opportunity
that the company has is that this is a new emerging market as a
result of the change of the people’s 󠄀lifestyles. 󠄀Having 󠄀a 󠄀high 󠄀
level of demand than the supply in this market segment is the
another opportunity that the company has. Lastly, one of the
threats that the company has is that the Coca-Cola and PepsiCo
Companies are already established in the market, and it will,
therefore, be hard for it to displace them. In addition to this
having a global perspective for the company, offshoring will
pose a threat to the success of the company.
Marketing Plan and Sales Strategy
WeFit Diet Drink is a business organization that
manufactures and sells non-alcoholic drinks such as diet cola,
juices, and water. Despite the fact that the market is
competitive, the business was established with the intention of
applying aggressive and effective marketing strategies that will
enable it to build its brand in the market. The market is
crowded, and this makes it necessary for the business to
consider the application of unique strategies that will ensure
that it has a share of the market.
Sales Strategy
Various marketing vehicles are available for use but the most
effective are social media. WeFit Diet Drink can make of use
social media such as Facebook to build its brand. This tool is
effective because many people in the modern society use the
Internet and have accounts with social networks like Facebook
and Twitter (Zarrella & Zarrella, 2010). Companies such as
Coca-Cola have utilized social media as a marketing vehicle,
and they have effectively built their brands.
The company will be using different avenues to promote and

14. increase its sales. The first strategy will be the use of social
media platforms like Facebook, LinkedIn, and Instagram to
reach a huge number of its potential customers across the
geographical. The company will put in place someone who will
always be monitoring all its activities on all the social media
platforms. He or she will be responsible for responding to any
inquiries that will be raised through the social media platforms.
The other strategy will be the use of the print media.
WeFit understands that not everyone is on these social media
platforms, for example, the rural people and the old men and
women. However, the company knows that at least most of these
segment of potential customers gets to somehow read magazines
and newspapers at least sometimes hence it would be one of the
best options for reaching them. The last method that the
company would also want to use is advertising through the
televisions and radios. The company will approach the various
media houses to do for them the advertising. This last strategy
will surely reach a larger population compared to the other
strategies.
Company’s 󠄀target 󠄀market
Each business organization must have a target market. This is a
section of the whole market that the business focuses on. There
are consumers of different products and services in the market.
Keeping this in mind, it is necessary for businesses to be
specific on which they are focusing their products (Maclaran,
Saren & Golding, 2012). A business cannot serve the entire
market. Therefore, it needs to identify its target market and
concentrate on serving it in the best way possible. Having a
defined target marker enables a business to be more specific in
terms of the strategies it uses to create and implement
marketing plans.
Analyze the types of consumers
With respect to age, WeFit Diet Drink initially did not think a
target market would be necessary. However, since we will begin
marketing and sell our NAB in the Urban community of
Lincolnia VA 22312 a small city next to Alexandria VA in the

15. United States, where the population was 22,855 in the census in
2010. Since the largest group in our population is the 16 years
and over range will target the groups that are 16 to 65 years old.
Now as we break those numbers down by category it just makes
sense for us look at the following demographics as this helps
pinpoint out target market:
Average Income: $93,532
Level Education: 85 % of the population is High School grads
or Higher
Sex: the males out number females by about 300 and that help
us market to both male and female alike. Veterans of the
military will also be targeted, as the military community often
stays focused on staying healthy after their service.
Average household size: 2 – 4.
The language spoken: English.
Ethnic Groups: White, Black South American, and African
We seek to target anyone who is looking to change their
current beverages for more healthy ones that WeFit plan to
supply. WeFit is a small company with 30 employees that will
remain in the United States until see gain growth large enough
to warrant us to expand internationally. We are in our first year
of business and currently operate in a small strip mall that is
housed in a 10000-squarefoot building. Its products are non-
alcoholic. The legal bodies and authorities do not control the
consumption. The beverages are healthy; therefore, they are
suitable for all ages. This lack of age restriction enables the
company to reach to a larger size of the market, and this is an
effective strategy that can enable the business in achieving
competitiveness.
The education level of the targeted consumers does not affect
the 󠄀consumption 󠄀of 󠄀the 󠄀company’s 󠄀products. 󠄀As 󠄀stated 󠄀earlier, 󠄀
the products are non-alcoholic and are suitable for basically all
members of the society. Provided one can afford, they can
consume without any further restrictions.
WeFit Diet Drink products come in a wide range, and a
potential consumer needs to have a source of income in order to

16. have any of the products. The products are not for free, they are
sold, and therefore, consumers should have a source of income.
However, the products are affordable. Therefore, a consumer
does not necessarily need to have a well-paying job to afford
them. In addition to this, there are a large variety of the
products that target different members of the society especially
with respect to the level of income. Keeping this in
consideration, it is noted that no matter the level of income of
an individual, there is at least a product that one can
comfortably afford. By offering a wide range of products, a
WeFit Diet Drink is in the best position to occupy a large share
of the market no matter how crowded it might be.
The products are not specific to any gender. Whether male or
female, everybody is free to consume the beverages. WeFit Diet
Drink understands that by providing products that are suitable
for all genders, it can serve a larger area of the market. As
businesses develop products, they need to consider how the
target market will assist in gaining a larger share of the market.
Focusing on a larger market is usually a preferred tactic because
it makes it possible for businesses to achieve more.
Company’s 󠄀market 󠄀competition
In the business environment, competition plays a very important
role because it has a direct effect on the ability of such an
establishment to be successful or not in the market. With
respect to this, it is necessary for businesses to make use of the
most effective strategies that will be of benefit towards
competitiveness. Since We Fit understands their competitor will
be companies that have been around for many years like Coke,
Pepsi and Gatorade and many other non-alcoholic beverage
companies out there, we understand we have to get our name
and the reason the consumer should switch from their current
drinks and try ours. We seek to focus totally on what our
customers want in the healthy drink category. We want to
consistently focus on drinks that taste great and are good for
you. It is important for the management team to consider the
market so that they come up with the best strategies.

17. Competition Factors
As we took a look at WeFit Diet Drink and compared it to Pepsi
and Coke we found that WeFit has many challenges ahead of it
if they want to compete with the two big industry leaders. Just
to name a few items that we looked closely into during our
Competitive Analysis worksheet were Product Features, Brand
recognition and delivery time. Pepsi and Coke both scored a ten
on the worksheet in all three areas while WeFit Scored first in
them all. Not only did WeFit score low in those areas but as we
continued we found our Internal operations fall short of that of
our competitors also. Since WeFit is so much smaller then
Pepsi and Coke and do not have nearly the employees nor
equipment to produce the amounts of beverages that they can.
WeFit is neither discouraged nor disappointed as we seek to
learn from our competition as we move forward in our
community.
Justification of Company Strategy
The non-alcoholic drinks market is very competitive, and this
requires businesses to apply relevant and effective strategies.
WeFit Diet Drink is basically concerned with the quality and
the price of its products. We understand that these are very
relevant factors that directly affect its competition in the
market. WeFit Diet Drink aims at manufacturing high-quality
products and selling them at affordable prices. This strategy is
effective because it makes the market understand that there is
something unique about the business (Luther, 2011). Although
we appear to be outmatched in every area in respect to breaking
into a market that is overly targeted, WeFit intends to make
products that are only healthy and taste amazing. Our
competitors have to please both healthy and unhealthy NABs,
and that will set us apart from them. Basically, a business
organization needs to be different from the rest especially as far
as marketing is concerned.
During our Market Share distribution, we recognized the top 5
diet drinks, and they are
Diet Dr. Pepper, Coco Cola Zero, Diet Mountain Dew, Diet A &

18. W Root Beer and, Diet
Coke.
Although there are several documents that give conflicting
numbers over the years of which NAB is the leader. However,
all of them say that Pepsi and Coke have been the leaders in the
NAB industry and have sold Billions 󠄀of 󠄀dollars’ 󠄀work 󠄀of 󠄀
products and still are battling to become number one in the
industry. Over the past three years, Coke and Pepsi have been
the leaders of the market and the market competition is
increasing.
WeFit Diet Drink Five Fs
Function: WeFit Diet Drinks is a newly formed business
organization that basically operates in the foods and beverage
industry. We will provide a NAB that is strictly for those health
conscious consumers that what a variety of beverages that taste
good and are good for you.
Finances: WeFit will provide healthy NAB and a reasonable
cost to the consumer as well as build an infrastructure that will
last and give back to the community by building fitness centers
in them that will be free to underprivileged families.
Freedom: Consumers will be able to drink our product without
the worries of health concerns and have lots of energy to
complete any tasks they deem necessary.
Feelings: Consumers will have the feeling that they can conquer
the world after drinking our product as it exudes feelings of
self-worth and confidence.
Future: The future of the company and consumers will be an
excellent projection as we grow in the community the
community will grow with us. They can be confident in
knowing that we give back to the areas we work and live with
every dollar spent.
ETHICS AND SOCIAL RESPONSIBILITY
Commitment of the Company
The company is very committed to its ethics and social
responsibility to the whole society, as a good corporates citizen
ought to be. The first commitment of the company is the

19. creation of job opportunities to many people (Luther, 2011). As
a beverage company, WeFit will need to employ several people
in different positions and departments like the production
department, customer service department and all other positions
that would be availed to the people by the company.
The another area that the company will also be committed is by
following the set-out laws and regulation that must be followed
and adhered to by the beverage companies. The company will
also be committed to the treating of all its employees in a fair
and equal manner without discriminating any one of them. The
company when dealing with its employees will follow all the
labor laws that have been put in place by the relevant
authorities. The company is also committed to have a diverse
working force from different ethnic and social places.
Effects of WeFit Activities on the Environment and How to
mitigate them
Choice of Packaging
The company will be using the plastic bottles to package all its
soft drinks and sell them. The company clearly understands the
effects of using the plastic bottles to package its products.
However, it is the cheapest way to package them in these plastic
bottles due to ready available materials to manufacture them.
The use of plastic bottles can bring some negative effects on the
overall environment that we live in today. Unlike plants that can
decay, the plastic bottles do not decay whenever they are
disposed of hence posing a huge risk to the environment around
us.
The company has put in place some measures to mitigate such
risks that may occur to the environment by coming up with a
plan on how the plastic bottles can be properly disposed off.
The company will set up different centers where all its plastic
bottles will be collected after being used by the consumers.
Apart from these centers, the company will contract some
people who will be collecting these bottles from wherever they
are to the established centers. The bottles will then be recycled
and used again. The strategy will greatly reduce the risk of

20. environmental pollution.
Disposal of Bottles
All the bottles will always be collected and disposed of by the
specified agents or companies that will be contracted by the
WeFit company to the specific areas that would have been set
up by the company.
Health Issues
According to research, there are some particular bottles that are
said to have some chemicals that may leach in the soft drinks.
One of these chemicals is known as Bisphenol A. It is a
common chemical that has been cited in the plastic bottles.
Most of the time it is found in plastic bottles that are said to be
marked with a plastic code 7. Most of the bottles that contain
these chemicals are said to have been banned in some countries
around the world. However, some countries are still using them.
The Bisphenol has been associated with some problems that are
currently facing the pregnant women around the world. The
chemical has some devastating effects on the fetus. The
chemical normally leads to chromosomal abnormalities. Such
abnormalities are related to birth development disabilities in
childhood and utero and defects. The chemical may also lead to
prostate cancer and breast cancer. Scientific reports indicate
that people with a high concentration of the chemical are three
times more likely to have complications like cardiovascular and
Type 2 diabetes unlike those who have low concentrations of it.
WeFit Company has a plan of doing away with the use of such
bottles that contain the chemical. This is an effort to prevent
any health issues amongst its customers.
Company’s 󠄀Plan 󠄀to 󠄀reach 󠄀the 󠄀Appropriate 󠄀Market
The company plans to reach its market through advertising and
marketing strategies that have been put in place as mentioned
above. Since the soft drinks can be taken by a large number of
people including children and adults, the company will find it
easier to sell its products. However, the people suffering from
diabetes may not be able to take the soft drinks. The company
will have to state on its soft drinks the dangers of consumption

21. by those people who are diabetic.
BUSINESS PLAN FINANCIALS
Strategic Financial Planning Techniques
WeFit Company will adopt its strategic management of its
financials by setting up its goals and finally analyzing them to
achieve its goals. All the heads of department heads and their
staff in WeFit company will be responsible for the creation of
the specific tactics that will help the company to reach its goals.
The heads together with their staff will work using the big
picture objectives that will have been set out by the strategic
management. The company will look at different financial
projections and reports to increase its chances of success.
Budgeting
The company will use budgeting as its most basic form of
analyzing its finances for a better strategic management. The
company will also be conducting its budget variance analysis to
know where previous budgets were inaccurate and the reason
for the inaccuracy. The information will help WeFit company to
make the necessary changes were deemed possible especially
that cause negative budget outcomes.
Pricing Analysis
The company will also conduct a pricing analysis of its
products. The company will try to project the effects of
increasing or decreasing the price of its products in the market.
Such analysis will help the company to create better pricing
strategies like selling at a low price hence generating higher
volume sales or selling at higher prices that might result in low
selling volume of the products (Sadgrove, 2005). The analysis
will help the company determine the effect of these strategies
on its gross profits.
Evaluating Costs
The company will also analyze its financials by calculating the
production and the overhead costs. Overhead costs can be
defined as the expenses that are related to the running of the
business irrespective of what the company sales are. Such costs
may include: office staff, marketing, insurance, and rent. On the

22. other hand, production costs can be defined as expenses that are
directly related to making a 󠄀company’s 󠄀product 󠄀like 󠄀packaging, 󠄀
supplies, labor and machinery.
By knowing its overhead and production costs, WeFit will be
able 󠄀to 󠄀determine 󠄀its 󠄀costs 󠄀per 󠄀unit 󠄀at 󠄀the 󠄀company’s 󠄀different 󠄀
levels of production. It will also help the company to set its
prices and also show the company whether it should undertake
cost-containment as strategy to improve or achieve its
objectives. The analysis will determine whether WeFit should
reduce its production cost a bit further or if it should reduce its
overhead expenses.
Cash Flow Management
Any company that is known for running a business that is
profitable may encounter some trouble paying up its bills if
does not coordinate the receipt of its receivable s with the exact
due dates of payables. The strategic management of WeFit
includes managing its cash flows effectively and also ensuring
that the company has enough credit or cash to pay up its bills.
WeFit sets out procedures for giving credit to its customers,
maintaining cash reserves and negotiating credit terms with the
suppliers (Maclaran, Saren, & Goulding, 2012). The strategic
management of its cash helps WeFit to prevent losing access to
its materials and supplies. Loss of access to materials and
supplies may lead to low production and loss of customers to
the company.
Performance Analysis
Performance analysis will be very critical to the company
especially when the company will consider buying another
company or shutting any of its branches. For WeFit to make
such decisions, the management will first have to review its
performance in the market. The management will not only seek
to know its profitability performance, but it will also look at the
financial effects on the whole of WeFit Company. Acquiring
another profitable company as a way of expanding might end
putting much pressure and stress on the debt-service abilities
together with the administrative staff.

23. References
Dent, J. (2011). Distribution channels: understanding and
managing channels to market. London Philadelphia, PA: Kogan
Page.
Sadgrove, K. (2005). The complete guide to business risk
management. Aldershot, Hants, England Burlington, VT:
Gower.
Taylor, K. (2015). The 4 biggest ways American beverage
consumption will change in 2016. Business insider
Luther, W. (2011). The Marketing Plan: How to prepare and
implement it. New York: American Management Association.
Maclaran, P., Saren, M. & Goulding, C. (2012). Critical
Marketing. Boston: Elsevier.
Zarrella, D. & Zarrella, A. (2010). The Facebook Marketing
Book. 󠄀Sebastopol, 󠄀CA: 󠄀O’Reilly 󠄀Media.