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A Continuation of Assignment #1 & 2
You are the VP of Operations for your company and own all of
your company’s operations/supply chain (R&D, Planning,
Procurement, Manufacturing, Inventory Control, Warehousing/
Distribution/ Transportation, and Customer Service). You are
now 5 years into the 5-10 year Strategic Management Process
and the company has delivered on a number of the Corporate
level Objectives and Goals. The changes that impact you follow:
· Your company acquired a cracker brand 2 years ago and the
company you bought it from has been producing the product for
you. You have one more year left on the original manufacturing
contract, but they have already informed you that they are
increasing their pricing at the end of that year to a level that
you are not willing to pay. You have decided to search for other
options.
· The new 10 oz chicken noodle soup has sold better than
anticipated (our original forecast was not very good) and we are
now at 80% of our capacity within our existing facilities.
· The forecast for all domestic products for the next 5-10 years
shows a slow, but sure increase of about 2%/year.
· Sales in China have exploded and the forecasted for the next
5-10 years there is 10%/year growth.
· You have been successful at reducing Costs of Goods Sold
(COGS) by 7%, but you still have 3% more to accomplish.
· Your inventory is averaging 4 turns/year and your boss views
this as an opportunity.
· Aggregate top line sales have grown by 7% since the original
strategic plan with another 3% expected over the next 5 years.
Your boss is asking you to make sure your supply
chain/operations organization play a role in this sales growth.
· The production and quality problems you were experiencing
have been resolved by way of total quality team work.
· Your most recent problems are:
· That your perfect order % (on-time, complete and billed
accurately) has dropped from an acceptable 99% to an
unacceptable 90%, dissatisfying many of your larger customers
· The performance of your two biggest suppliers have slipped as
they are missing delivery dates and times
It is your responsibility to determine how your supply
chain/operations organization will handle all of the above
issues.
There are no formatting requirements. Your assignment is to
explain in 3 pages (or less):
1. How you would go about dealing with the changes, new
opportunities and issues above
You do not necessarily have to solve the new opportunities and
problems, but instead just tell me how you would go about it.
Any insight into how you would solve the new opportunities and
problems will add positive points to your grade though.
You will be graded on the completeness, accuracy, quality of
your response and how well you convince me that you
understand the subject matter. There are numerous concepts to
take into consideration here and I would not expect anyone to
be able to identify all of them, let alone combine them into a 3
page response. So you will be graded on how many of these
concepts you are able to identify and utilize correctly within
your response.
You can simply email your assignment to me (similar to
Assignments #1 & 2).
Corporate Strategies Goalsjective
Corporate Goals Goalsjective
Corporate Objective
Grow Gross Margins
by 5%
Grow Top-line Revenues
10%
Mergers & Acquisitions
(2 over next 3 yrs)
Expand into New Markets / Geographies (China)
Accelerate Innovation (20% Revenues from New Products)
Reduce Costs
10%
Consolidate Manufacturing
Facilities
Implement Enabling Technologies
Increase Productivity by 20%
Corporate Measures Goalsjective
New Product Development Cycle Time
# of M&A’s
Inventory Value
Cost of Goods Sold
Sales Revenues
Sales Revenues in China
New Products as a % of Total Revenues
New Product Development Success Rate
Direct Material Spend
# of Employees
Mfg Production Rates
Investment in Software
Mfg Utilization
# of Mfg Facilities
Assignment 3- Part 2 – Business Plan Draft
Sabrina Walker
BUS 599- Strategic Management
Professor: Dr. Jefferson
March 7, 2016
DESCRIPTION OF BUSINESS
My Non-Alcohol Beverage (NAB) company name is EZ-Cleanz
The significance of this company is to provide a convenient
method of detoxing at the fraction of the cost to detox drinks at
home and the convenience being able to carry it along with you.
Detoxing with various beverages is a great way to help give
your body the nutrients it’s really craving, and can give your
digestive system a break from having to break down and digest
food. The liver is the most important detoxifying organ in the
body, so it only makes sense to drink fruits and vegetables to
help it function at its best.
MISSION STATEMENT
EZ- Edge is a socially conscious company providing a detox
drink for our consumers to assist in creating a healthy lifestyle
change or weight loss. Detoxing the body has been shown to be
effective for starting a new diet program, a new exercise
program, or just a good idea to do at strategic times throughout
the year.
Range/Nature of Products or Services Offered: Non-Alcoholic
Beverage
Quality: Purified water and organic fruits and vegetables
Price: $2.99 - 8.99
Service: Detox drink/smoothie
Overall Relationship to Customer:
EZ-Cleanz pride ourselves with a close relationship with our
customers. This relationship allows use to be able to
customer’s suggestions regarding our products in order to
enhance them. We strive to let our customers know they are our
number one priority.
Management Style/Relationship to Employees:
We plan to use the participative (Democratic) style of
leadership. This leadership style has the primary objective of
building commitment and consensus among employees. EZ –
Cleanz Beverages will have a close relationship with its
employees, which will allow them input in developing and
making of the products. We value our employees and we aim to
provide a great working environment.
Nature of Work Environment: Friendly, open-door environment
Relationship to Rest of Industry: EZ-Cleanz would have to
compete with other competitors but we have to ensure we have a
competitive advantage over other companies by offering a better
product and easily accessible to our consumers.
Incorporation of New Technology/Other New Developments:
In order to have a competitive edge over our competitors, we
have to constantly review our products to ensure we are
providing a top product using the best techniques/equipment
available.
Growth/Profitability Goals: Our goal is to be a successful
company that will have year over year growth each year
Relationship to Community/Environment/Other Social
Responsibility Goals:
EZ-Cleanz would like to have an appearance in the community
to show what we are concerned about the health of our
consumers.
Other Personal/Management Goals:
EZ- Cleanz will consistently provide training for our staff and
employees to allow our company to provide the best products to
our consumers. As the company grows we want our employees
to grow.
Trends in the Non-Alcoholic Beverage Industry
Non-alcoholic beverages are drinks that contain less than 0.5%
alcohol. They comprise juices, energy drinks, bottled water,
wines, ready to drink tea/coffee and non-alcoholic beer, all of
which can also referred to as soft drinks or virgin drinks. There
is a global surge in the consumption of soft drinks, owing to the
changing customer needs coupled with the introduction of many
new flavors and product varieties, thereby causing a huge
demand for this type of drinks. The rising levels of disposable
income for customers in the emerging economies is another
major factor driving the need for the non-alcoholic beverages,
and we expect this to continue to have an enormous impact on
the soft drinks consumption levels.
However, demand and by extension revenue growth for the non-
alcoholic beverages in the United States may not grow as
rapidly as other regions of the world, a phenomenon that is
attributed to the increasing health awareness more so in the
younger population. In fact, demand for the soft drinks is
expected to decline in the US and most of North America owing
to the aforementioned health concerns and obesity. This may not
be the case in the Asia-Pacific and in the Rest of the World
where the growing disposable incomes and rapid changes in
consumer lifestyles are expected to drive demand for the non-
alcoholic beverages. The European market is more similar to the
United States, and it is expected that the demand for soft drinks
may suffer a deep decline. However, the recent introduction of
sugar-free and diet drinks may reverse this trend and thereby
considerably lead to increased consumption (Publishing,
Worldwide Music Series, Market, 2012).
In short, the demand for non-alcoholic beverages is greatly
determined by the consumer perceptions and health awareness,
accentuated by the levels of disposable incomes and the
government regulations regarding the manufacture of these
drinks. The growth in population and changes in consumer
lifestyles are also huge factors that dictate how much of the soft
drinks products is consumed in a given region. It is, therefore,
hard to predict the overall global effect and trends on the soft
drinks industry because different regions will have a different
trend depending on the prevailing market conditions in that area
(Steen, 2007).
Strategic Position
The best strategic position to be taken for this detox beverage
company is to create a grand alliance with several packaging
companies who are going to manufacture the final products,
using the formula or concentrate given by the beverage
company. This way, the parent beverage company can focus all
its attention on developing a good concentrate, as well as
leading all marketing and advertising initiatives for its
products. The manufacturing and packaging company also gets
to specialize in optimizing their manufacturing process to
reduce overhead costs.
Distribution Channels
Supermarkets, general merchandisers, and food service
establishments are the main outlets where soft drinks are sold.
The three collectively sell over 70% of sales. It is, therefore,
critical that we enter into contracts and deals that will ensure
our products reach these outlets since this is where the majority
of customers buy from. Other means by which we can get out
products to enter the market involve the vending machine
operators, where also a lot of sales can be made. The secret to
having the best distribution is to use the primary distribution
channels, but also explore new ways such as online distribution,
which can achieve the same results in a more efficient,
convenient and cheaper fashion.
Risks Associated with the Soft Drinks Industry
The non-alcoholic beverage industry faces numerous risks
associated with this line of business some of which if not
adequately mitigated, may cause detrimental loss and disruption
of its normal operations. Some of the significant operational
risks stem from the stiff regulations and laws imposed by the
government within which the beverage company operates. The
risk of litigation and hefty government penalties are some of the
main risks that such a soft drinks company may suffer. This risk
emanates from, among others, the regulations put in place by
the food standards agencies mandated to control the food and
additive components of any beverage to ensure that the drinks
are indeed safe for human consumption both in the short-term
and in the long-term. For instance, the US Food and Drug
Administration recently gave a report indicating that several
soft drinks contained benzene levels that were above the
recommended 5ppb. Such a report may result in the imposition
of substantial penalties on the affected companies, not to
mention the legal suits from concerned consumers of the
products involved (Pear, 2011).
Market risk is another major concern for the non-alcoholic
beverage industry. The ever changing market dynamics in any
given region creates new dimensions of the demand and supply
of the soft drink products. Health concerns associated with the
beverages pose a new headache for the manufacturers who are
now subject to numerous laws that affect their businesses
adversely in more ways than one. The emergence of many
players in this industry also means that the growing number of
competition will bring about a serious threat to both the existing
and upcoming soft drinks beverage companies. Loss of a
substantial market is a nightmare for any organization and could
mean the beginning of its downfall, and therefore, most
companies will fight hard to maintain their market share, if not
grow it.
Currency risk is also a critical concern for those firms
companies that have operations beyond the United States. The
foreign exchange rates are always changing. Although the USD
may be getting stronger, the same may not be said about the
other currencies. Any volatility in the political and economic
well-being of a country will have some effect on the exchange
rate of its currency, and this could adversely affect the
operations of the multinational soft drink company. Such risks
may, however, be mitigated by the use of hedging when drawing
any international contracts (Jorion, 1990).
SWOT Analysis
SWOT analysis refers to a planning tool used to identify the
strengths, weaknesses, opportunities and threats that exist both
in the internal and external organizational environment, in a bid
to help in making decisions that will assist the firm to the attain
its goals and objectives. SWOT analysis, therefore, helps a firm
to make better decisions and improve it business operations
(Westhues, Lafrance, & Schmidt, 2001). The strengths and
weaknesses relate to internal factors while opportunities and
threats relate to factors external to the firm. The following is a
SWOT analysis of my hypothetical detox beverage company
(Goodrich, 2015).
Strengths –The most outstanding strength in this company is the
wealth of over 10years of experience that is possessed by two of
our top managers, and if we harness this then we can go on to
become a great beverage firm. We also have a excellent
technical team who will help us use the best technology to run
and distribute our product. We also offer superior products.
Weaknesses- We are facing very stiff competition in the
industry against some of the largest soft drink companies in the
world. Poor marketing and advertising also hamper our growth.
Our low market share is also a major weakness, compounded by
low brand awareness.
Opportunities- There are numerous opportunities for new
international markets in emerging economies which can enhance
organizational performance. The rising demand for healthy
beverages is also a huge chance for us to gain more market
share.
Threats- There is the possibility of our competition
overwhelming us with competitive pricing by other beverage
firms, which calls for us to institute prudent measures aimed at
cost reduction. Water is getting scarcer by the day and costlier
and being an essential ingredient, this may make our products
more expensive.
In conclusion, for one to succeed in the non-beverage industry,
an extension SWOT analysis is necessary, as is innovation and
superior product offering. This will allow the company to
leverage on its strengths while keeping in consideration the
threats and opportunities posed by the environment.
Target Market Analysis
The product will mainly target the American adults with a
particular emphasis on minority races like the African-
Americans and those from the Hispanic community. The
targeted consumer’s age will range from 35 – 75 years. The
consumers will, at least, have high school level education with
little to no income since the product will be availed at
affordable prices. The target market will include both male and
female who come from all the ethnic groups in America but
mostly the African-Americans and white adults (Shaw, 2012).
The estimated population of Greensboro, NC is
approximately 56.5 thousand with the adult male and female
between the ages of 35-75 making up roughly 49% of the
population. Around 58% of the population is African Americans
while the white make up an estimated 33.5% of all the people in
the area. Over 85% of the population have attained a high
school diploma or higher (Factfinder.com).
Market Competition Assessment
EX-Cleanz will face direct competition from in-store
products sold at the local CVS and Wal-Mart stores and Juice
bars that claim to provide organic cleansers and indirect
competition from companies selling juice cleanses online such
as Blueprint Cleanse and Life Juice Shop as opposed to natural
juices. Many of these natural juices are marketed under Coca-
Cola and Pepsi ,they are businesses that are already established
with their brand names familiar globally. They, therefore,
possess stronger financial power and popularity among the
consumers. Due to their massive capital base, they can advertise
through practically every available channel, and can produce
more and distribute better. For this reason, competing with them
is bound to be an uphill task.
Also, the indirect competitors consistently pose the threat of
converting consumers from purchase detox cleanses to making
their own natural, organic cleanse at home for a fraction of the
cost. Their main selling strategy for their products is their
alleged health benefits that come with them and the convenience
of them being pre-packaged.
Strategy for Competing With Market Leaders
EZ-Cleanze will first and foremost strive to establish its
market niche. Competing with brands such Blueprint Cleanse
and Life Juice Shop may prove impossible. Therefore, the
company will resort to narrow down its target market to a size
which the company can comfortably customize the detox drink
for them. However, competition will most likely also be present
in the new niche and for the reason EZ-Cleanze will now make
efforts to set itself apart from the competition. This will be
achieved by the company doing what the competition is not
doing regarding product quality and keeping up with the trends
in the industry. EZ-Cleanze will also work hard to satisfy the
consumers. This will be done by ensuring high-quality products
at all times. Customer satisfaction more often than not results in
customers talking about the product and ultimately spreading
the brand awareness in the process. Also, the company will grab
market share by heavily investing in campaigns, which will help
create brand awareness and reach the consumer.
Differentiating EZ-Cleanze products from those of the
competition is important for the company, through
differentiation, will be able to shake up the market share
controlled by the industry leaders. Having a good strategy will,
therefore, ensure that the company’s product will be able to
move from “just another detox drink” to a recognized and
affordable detox drink.
Company message
EZ-Cleanze detox drinks are guaranteed to be natural and
organic that will provide consumers with healthy on-the-go
alternatives contrasting products that other retailers offer. It
provides a quench the consumers thirst and at the same time can
refresh the mind, body and spirit. The drinks will be sold at
pocket-friendly prices to ensure savings on the consumer’s part.
The products will be available in all leading stores in the city in
easy to carry and environmentally friendly containers. The
detox drink represents the new generation of adults that want to
live healthy lives who make up the culturally diverse world that
we currently live. EZ-Cleanze will in the future continue to
dedicate resources to conserving the environment and unifying
the different cultures in the world (Lamb, 2013).
Marketing Vehicle
EZ-Cleanze will use the internet, social media to be
particular, as its primary vehicle for its marketing. Social media
will be selected as the primary marketing vehicle for its
numerous benefits. Firstly, it is one of the most efficient
methods of increasing the brand awareness and recognition.
Secondly, through interacting via social media with the
consumers, consumer loyalty towards the brand will
significantly increase. Social media provides an excellent
opportunity to convert visitors to customers. Marketing
campaigns on social media platforms are notably cheaper
compared to channels such as billboards or television
commercial. Lastly, social media is one of the most effective
platforms for getting consumer feedback (Lamb, 2013).
The success of social media as a campaign vehicle for non-
alcoholic beverage can be demonstrated in the success that the
Coca-Cola Company has recently enjoyed with its “share a coke
campaign”. During this campaign, consumers could place an
order for a coke bottle with a customized message through a
dedicated Facebook app. This campaign led to an 870% increase
in the traffic on the company’s Facebook page, and this
ultimately translated to over 7% increase in the total sales of
the soft drink (Grimes, 2013).
Ethics & Social Responsibility Plan
Good corporate citizen
Business organizations are basically set to serve the people
through their products and services as well as the opportunities
they offer to the people. Taking this into consideration, a
business can be perceived as a citizen to a nation because it
serves the nation and pays taxes. EZ-Cleanz is a business
organization that is committed to be a good corporate citizen
through the following efforts:
Creating jobs
One of the greatest aspects of any organization especially
in the business sector is creation of job (Hill & Gareth, 2012).
The organization needs to run and therefore needs manpower for
the same. In this case, EZ-Cleanz is a manufacturing
organization which implies that it needs a considerably large
number of people to run. As a good corporate citizen, the
business will create jobs for the locals to enable them afford a
decent life. One of the best ways that companies can be good
corporate citizens is by creating jobs especially for the
individuals from the local society; it is a great way of boosting
their economy through corporate social responsibility.
Adhering to rules and regulations
There are rules and regulations in different areas that
govern how business should run. For instance, businesses are
required to pay for licenses and permits as well as taxes. They
are also supposed to meet various minimum requirements. As a
good corporate citizen, EZ-Cleanz observes all rules and
regulations required in order to run business. In this case, the
business is being a good corporate citizen to the government.
Following the law enables businesses to work easier because
they are recognized by the government.
Fair treatment of employees
Employees are the greatest assets of any organization
because without them no operations can go on. It is therefore
necessary to make sure that they are treated fairly to get their
best services. EZ-Cleanz treats all citizens in the same manner;
it does not favor or oppress any. All employees get fair
treatment from the management team. This move has enabled
the organization to be a good corporate citizen.
Non-discrimination of employees
As stated earlier, the organization does not discriminate its
employees because it perceives them as having equal value to
the organization. To make this move more important, the
company embraces diversity in the sense that it hires employees
from different cultures and ethnicities.
Social venture
One of the goals of the organization as a social venture is
to make sure the environment is kept clean so that people can
live happily (Weiss, 2009). The environment is among the most
valuable aspects in life therefore it must be kept clean for the
benefit of all. EZ-Cleanz has made this as one of its priorities.
In order to reach this goal, the company uses
environmental friendly manufacturing processes. The waste
products are treated before being discharged to make sure that
they are harmless to the environment. The company also makes
use of reusable energy that is environmental friendly. In
addition to this the company encourages the users of its
products to dispose packages in a safe manner that is least
harmful to the environment.
This company is a social venture because it is intended to
impact the society in a positive way. It is a detox beverage
company and this implies that it is interested in improving the
social lives of the people. The business is chosen as a social
venture because it is concerned about the people around it. Its
efforts are geared towards making sure that the society lives a
social life that is beneficial to them.
Effect of company activities on the environment
As a beverage company, there are several ways through which
activities can affect the environment. One of the ways is
disposal of waste products to the environment through water
discharges and fumes. Industrial processes usually have
possible effects on the environment through a variety of ways.
It is the responsibility of the organization to make sure its
activities are less harmful to the environment.
Another possible way through which the organization can affect
the environment is through its choice of packaging. After the
beverages have been used, most consumers would through the
bottles or packages anywhere really minding the effect on the
environment. Despite the fact that this is an act of
irresponsibility from the consumers, the manufacturing
company is equally responsible.
In order to mitigate these negative effects on the environment,
the company has taken several steps (Weiss, 2009). As
mentioned earlier, the company is engaging in renewable energy
as well as treatment of its waste products to make sure they do
not affect the environment. In addition to this, the company is
packaging its products in recyclable or reusable containers in a
move to eliminate negative effects on the environment.
Health issues
The beverages manufactured by EZ-Cleanz are beneficial
in terms of health because of the nutritional value. The
beverages are specifically designed for detoxing and this comes
along with several health benefits. Consumers have a better
appetite for food and their sugar levels in the body are
normalized. As a detoxing beverage company, EZ-Cleanz
products have additional health benefits to consumers. A routine
use of the product is healthy to consumer as it boosts even their
immune system.
In order to mitigate any negative claims about the
beverages, the company will concentrate on making sure that it
observes all standards required in manufacturing its products
(Hill & Gareth, 2012). It will also focus on using the best
quality raw materials to make sure that the finished product is
of the highest quality possible. It should be noted that products
might have negative effects on the health of the people and
measures should be put in place to eliminate this. It is the
responsibility of the manufacturer to take care of such an issue
through the best way possible.
Marketing of the product
To make sure that the products attract the right consumers
that will not be affected in a negative way there will be
adequate information about the right consumers. For instance,
the persons under the age of 18 do not qualify to use the
product. Individuals on specific medications will also not be
recommended to use the products. Distribution will be to
specific areas to make sure that only the target market is
reached.
References
Factfinder.com.
http://factfinder.census.gov/faces/tableservices/jsf/pages/produc
tview.xhtml?src=CF.
Grimes, T. (2013). The Guandian.
http://www.theguardian.com/media-network/media-network-
blog/2013/jul/24/share-coke-teach-brands. Date accessed:
February 12, 2016
Goodrich, R. (2015). SWOT Analysis: Examples, templates &
definition. BusinessNewsDaily, 1-10.
Hill, C. & Gareth, R. (2012). Strategic management theory: An
integrated approach. London: Cengage Learning.
Jorion, P. (1990). The Exchange-Rate Exposure of U.S.
Multinationals. The Journal of Business, 331-345.
Lamb, E. (2013). ACP Marketing. Mason OH: Cengage
Publishers.
Moores, S. (2007). Experts warn of detox diet dangers. NBC
News
Pear, R. (2011). Soft Drink Industry Fights Proposed Food
Stamp Ban. New York Times.
Publishing, Worldwide Music Series, Market. (2012). n Market
Reports n Industry Trends n Demographic Data 2012. Health
Care, 1-106.
Shaw, E. H. (2012). Marketing Strategy From Origin of Concept
to Conceptual Framework. Journal of Historical Research,
30-55.
Steen, D. P. (2007). Carbonated Soft Drinks: Formulation and
Manufacture. Carbonated Soft Drinks: Formulation and
Manufacture, 1-248.
Weiss, J. (2009). Business ethics: A stakeholder and issues
management approach with cases. Mason, OH: South-Western
Cengage Learning.
Westhues, A., Lafrance, J., & Schmidt, G. (2001). A SWOT
analysis of social work education in Canada. Social Work
Education: The International Journal, 35–56.
Running Head: OPERATIONS, TECHNOLOGY AND
MANAGEMENT PLAN
1
OPERATIONS, TECHNOLOGY AND MANAGEMENT PLAN
Assignment 3: Part 1 - Operations, Technology
and Management Plan Sabrina WalkerProfessor Jefferson
BUS 599: Strategic Management March 6, 2016
Operation, technology and management plans
Operations plan
Introduction
Operations plan is an important element in the success of any
business. This type of plan is developed by the business
management to ensure that all the business operations of a
particular organization are conducted in an efficient and
effective way. In this case, the company to for which the
operations plan is develop is called EZ-Cleanz and it is a non-
alcoholic beverage products based company. The role of the
management in EZ Cleanz Company is to ensure every member
of the organization works as a team towards the realization of
the business objectives(Summary, 2012). This section therefore
seeks to develop a clear and detailed plan for this non-alcoholic
beverage company on how to operate effectively.
Key aspects
The first key aspect that is involved in the development of an
operations plan is to set the organizational strategies. EZ-
Cleanz deals with beverages that are non-alcoholic and there are
certain strategies that are needed to ensure that the organization
realized its goals within the beverage industry. The company
will need to conduct a research on what resources are required
to initiate the EZ-Cleanz non-alcoholic beverage company.
There should be a massive session for advertisement to ensure
the goals that are set are attained(Ries, 2011).
There is also need to carry out a master program for the sake of
competition. EZ-Cleanz needs to develop products that serve a
particular market segment. To effectively determine the market
for EZ-Cleanz, the company has to do a simple SWOT analysis
for the existing companies and develop a perceptual map. This
will help the company identify the market segment that is
underserved by the current product brands and align its
operations so as to serve this segment.
The strengths and challenges for the company also need to be
identified. This is aimed at identifying the sectors that the
company can utilize to grab the competitive advantage in the
industry. As part of the operations plan, there should be a
communication plan that ensures the employees and the
management have a common meeting at least once a month of
once a year to ensure that they communicate the strategic
decisions for the company. The employees and the management
also need to have a daily communication plan that ensures
urgent issues in the business operations are identified early and
communicated to the relevant staff.
Time and cost efficiencies
Various business operations should be undertaken under strict
deadlines. All deadlines must be effectively projected and
attained for the business to grow and achieve its goals. A visit
to EZ-Cleanz should be done monthly with all the company
stakeholders expected to be part of the visiting team.
Advertisement should also be done as discussed earlier and the
approximate costs here should be $100 per month before EZ-
Cleanz becomes fully operational. The startup is to begin on
March of this year and be finalized in August. During this
period, the events are to be conducted twice a month so as to
achieve the goals set.
Competitive advantage
To meet that competitive edge, the company should ensure
personal responsibilities are clearly defined and the employees
take them as routine(Davila & Foster, 2007). EZ Cleanz needs
to come up with various sections called departments that will be
mandated to undertake various tasks to ensure the company
grows. For instance, the company needs to have sales and
promotion department to ensure the beverages are advertised
properly. There is also need to have a research and
development department that will be responsible for conducting
industry researches so that the beverage brands released by EZ-
Cleanz are fresh and better in the market.
Challenges and solutions
The major challenge in for the new market entrants is the unfair
competition that they face. Equally, EZ-Cleanz faces similar
challenge from the already established non-beverage companies.
However, with effective strategies and efforts from the
management and the employees, the company will quickly break
even and grab the competitive advantage. The company also has
a challenge of developing a brand and customer loyalty to its
beverage brands before it gains market grounds.
The above challenges can be overcome by deploying effective
strategies. Countermeasures include proper research and
development on the market so as to produce quality beverages is
required in the market.
The company will also outsource some of the production
resources to ensure it gains the competitive advantage. Since
there are limited resources for EZ-Cleanz, just like any other
startup, the company needs to obtain expert and skilled
personnel and other production resource so as the business goals
can be achieved.
Technology plan
This plan is essential in EZ-Cleanz Startup Company in that it
plays a very important role of ensuring the key technical aspects
and also defining the future of the business through modern
technological solutions. A technology plan will be developed in
such a way that it focuses on 3 or 5 years and in between these
years, the plan will be updated regularly(Ries, 2011).
Technology is very dynamic and if well utilized, it can help the
company realize its goals as anticipated.
Software
Digital technology is the kind of technology that will be utilized
in EZ-Cleanz to ensure its continued success. All the employees
and the business operations will be monitored and controlled in
a digital way. This technology involves software applications
that will be deployed by the company to ease the process of
order tracking, inventory management and also manage
production process. Such software applications include third
party application of which some are based on the cloud. Cloud
computing software applications will be help maintains the
security of organizational infrastructure as well as maintaining
high productivity(Michael E. Bratman, 1999). An example is
when some of the customers will be able to book their
beverages online or even chat online with the distributors to
help deliver their products. Online payment system is also
necessary to accompany online ordering system.
Hardware
Hardware part of the organization involves various networking
devices and equipment that will be implemented to ensure the
employees and management in the company communicate
effectively. Computer networking is very essential especially
when the company needs a reliable and effective means of
sharing information. Such devices include computers, routers,
switches and firewalls.
Telecommunication
Telecommunication equipment will also be needed for distant
sharing of information. This is very helpful to maintain
relations with distant customers. Telecommunication equipment
that will be deployed includes telephony, teleconferencing, use
of satellite communication and also video conferencing
techniques(Michael E. Bratman, 1999). These techniques will be
aligned with the business policies and ensure the company
realized its vision.
Management and Organization
This section looks at EZ-Cleanz’s management structure and the
hierarchy of the management. The organization will include
various departments and departmental heads as discussed earlier
to enable conduct business operations effectively.
Key employees
EZ-Cleanz will have the following employees;
· Packaging employees
· Packaging supervisors
· Machinery operators
· Accountants
· Sales representatives
However, the company is expected to grow and expand in future
so that additional employees can be employed to oversee some
of the activities.
Advisors
The advisory committee for EZ-Cleanz Company will consist of
individual who will be providing relevant guidance to the
management officers and the staff members as well. The
members of this committee will be outsourced from the non-
alcoholic beverage industry and they will be as follows;
· Marketing and sales director
· Human resource manager
· Packaging and branding director
· General operations manager
· Communication and IT officer
· Administrative and financial manager
Starting from the senior management, the hierarchy of
management within the EZ-Cleanz will be as follows;
IT manager
Beverage distributors
Sales representatives
Technical staff
Machinery operators
Packaging personnel
Administrative and Financial manager
Operations Manager
Marketing and sales manger
President (EZ-Cleanz Company)
References
Davila, A., & Foster, G. (2007). Management control systems in
early-stage startup companies. Accounting Review, 82(4), 907–
937. http://doi.org/10.2308/accr.2007.82.4.907
Michael E. Bratman. (1999). Intention, Plans, and Practical
Reason. Intention, Plans, and Practical Reason.
http://doi.org/10.2307/2185304
Ries, E. (2011). The Lean Startup. Working Paper.
http://doi.org/23
Summary, E. (2012). Business Plan for a Startup Business.
SCORE.org, 1–31.

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A Continuation of Assignment #1 & 2You are the VP of Operation.docx

  • 1. A Continuation of Assignment #1 & 2 You are the VP of Operations for your company and own all of your company’s operations/supply chain (R&D, Planning, Procurement, Manufacturing, Inventory Control, Warehousing/ Distribution/ Transportation, and Customer Service). You are now 5 years into the 5-10 year Strategic Management Process and the company has delivered on a number of the Corporate level Objectives and Goals. The changes that impact you follow: · Your company acquired a cracker brand 2 years ago and the company you bought it from has been producing the product for you. You have one more year left on the original manufacturing contract, but they have already informed you that they are increasing their pricing at the end of that year to a level that you are not willing to pay. You have decided to search for other options. · The new 10 oz chicken noodle soup has sold better than anticipated (our original forecast was not very good) and we are now at 80% of our capacity within our existing facilities. · The forecast for all domestic products for the next 5-10 years shows a slow, but sure increase of about 2%/year. · Sales in China have exploded and the forecasted for the next 5-10 years there is 10%/year growth. · You have been successful at reducing Costs of Goods Sold (COGS) by 7%, but you still have 3% more to accomplish. · Your inventory is averaging 4 turns/year and your boss views this as an opportunity. · Aggregate top line sales have grown by 7% since the original strategic plan with another 3% expected over the next 5 years. Your boss is asking you to make sure your supply chain/operations organization play a role in this sales growth. · The production and quality problems you were experiencing have been resolved by way of total quality team work. · Your most recent problems are:
  • 2. · That your perfect order % (on-time, complete and billed accurately) has dropped from an acceptable 99% to an unacceptable 90%, dissatisfying many of your larger customers · The performance of your two biggest suppliers have slipped as they are missing delivery dates and times It is your responsibility to determine how your supply chain/operations organization will handle all of the above issues. There are no formatting requirements. Your assignment is to explain in 3 pages (or less): 1. How you would go about dealing with the changes, new opportunities and issues above You do not necessarily have to solve the new opportunities and problems, but instead just tell me how you would go about it. Any insight into how you would solve the new opportunities and problems will add positive points to your grade though. You will be graded on the completeness, accuracy, quality of your response and how well you convince me that you understand the subject matter. There are numerous concepts to take into consideration here and I would not expect anyone to be able to identify all of them, let alone combine them into a 3 page response. So you will be graded on how many of these concepts you are able to identify and utilize correctly within your response. You can simply email your assignment to me (similar to Assignments #1 & 2). Corporate Strategies Goalsjective Corporate Goals Goalsjective Corporate Objective Grow Gross Margins by 5% Grow Top-line Revenues 10% Mergers & Acquisitions (2 over next 3 yrs)
  • 3. Expand into New Markets / Geographies (China) Accelerate Innovation (20% Revenues from New Products) Reduce Costs 10% Consolidate Manufacturing Facilities Implement Enabling Technologies Increase Productivity by 20% Corporate Measures Goalsjective New Product Development Cycle Time # of M&A’s Inventory Value Cost of Goods Sold Sales Revenues Sales Revenues in China New Products as a % of Total Revenues New Product Development Success Rate Direct Material Spend # of Employees Mfg Production Rates Investment in Software Mfg Utilization # of Mfg Facilities
  • 4. Assignment 3- Part 2 – Business Plan Draft Sabrina Walker BUS 599- Strategic Management Professor: Dr. Jefferson March 7, 2016 DESCRIPTION OF BUSINESS My Non-Alcohol Beverage (NAB) company name is EZ-Cleanz The significance of this company is to provide a convenient method of detoxing at the fraction of the cost to detox drinks at home and the convenience being able to carry it along with you. Detoxing with various beverages is a great way to help give your body the nutrients it’s really craving, and can give your digestive system a break from having to break down and digest food. The liver is the most important detoxifying organ in the body, so it only makes sense to drink fruits and vegetables to help it function at its best. MISSION STATEMENT
  • 5. EZ- Edge is a socially conscious company providing a detox drink for our consumers to assist in creating a healthy lifestyle change or weight loss. Detoxing the body has been shown to be effective for starting a new diet program, a new exercise program, or just a good idea to do at strategic times throughout the year. Range/Nature of Products or Services Offered: Non-Alcoholic Beverage Quality: Purified water and organic fruits and vegetables Price: $2.99 - 8.99 Service: Detox drink/smoothie Overall Relationship to Customer: EZ-Cleanz pride ourselves with a close relationship with our customers. This relationship allows use to be able to customer’s suggestions regarding our products in order to enhance them. We strive to let our customers know they are our number one priority. Management Style/Relationship to Employees: We plan to use the participative (Democratic) style of leadership. This leadership style has the primary objective of building commitment and consensus among employees. EZ – Cleanz Beverages will have a close relationship with its employees, which will allow them input in developing and making of the products. We value our employees and we aim to provide a great working environment. Nature of Work Environment: Friendly, open-door environment Relationship to Rest of Industry: EZ-Cleanz would have to compete with other competitors but we have to ensure we have a competitive advantage over other companies by offering a better product and easily accessible to our consumers. Incorporation of New Technology/Other New Developments: In order to have a competitive edge over our competitors, we have to constantly review our products to ensure we are providing a top product using the best techniques/equipment available. Growth/Profitability Goals: Our goal is to be a successful
  • 6. company that will have year over year growth each year Relationship to Community/Environment/Other Social Responsibility Goals: EZ-Cleanz would like to have an appearance in the community to show what we are concerned about the health of our consumers. Other Personal/Management Goals: EZ- Cleanz will consistently provide training for our staff and employees to allow our company to provide the best products to our consumers. As the company grows we want our employees to grow. Trends in the Non-Alcoholic Beverage Industry Non-alcoholic beverages are drinks that contain less than 0.5% alcohol. They comprise juices, energy drinks, bottled water, wines, ready to drink tea/coffee and non-alcoholic beer, all of which can also referred to as soft drinks or virgin drinks. There is a global surge in the consumption of soft drinks, owing to the changing customer needs coupled with the introduction of many new flavors and product varieties, thereby causing a huge demand for this type of drinks. The rising levels of disposable income for customers in the emerging economies is another major factor driving the need for the non-alcoholic beverages, and we expect this to continue to have an enormous impact on the soft drinks consumption levels. However, demand and by extension revenue growth for the non- alcoholic beverages in the United States may not grow as rapidly as other regions of the world, a phenomenon that is attributed to the increasing health awareness more so in the younger population. In fact, demand for the soft drinks is expected to decline in the US and most of North America owing to the aforementioned health concerns and obesity. This may not be the case in the Asia-Pacific and in the Rest of the World where the growing disposable incomes and rapid changes in consumer lifestyles are expected to drive demand for the non- alcoholic beverages. The European market is more similar to the United States, and it is expected that the demand for soft drinks
  • 7. may suffer a deep decline. However, the recent introduction of sugar-free and diet drinks may reverse this trend and thereby considerably lead to increased consumption (Publishing, Worldwide Music Series, Market, 2012). In short, the demand for non-alcoholic beverages is greatly determined by the consumer perceptions and health awareness, accentuated by the levels of disposable incomes and the government regulations regarding the manufacture of these drinks. The growth in population and changes in consumer lifestyles are also huge factors that dictate how much of the soft drinks products is consumed in a given region. It is, therefore, hard to predict the overall global effect and trends on the soft drinks industry because different regions will have a different trend depending on the prevailing market conditions in that area (Steen, 2007). Strategic Position The best strategic position to be taken for this detox beverage company is to create a grand alliance with several packaging companies who are going to manufacture the final products, using the formula or concentrate given by the beverage company. This way, the parent beverage company can focus all its attention on developing a good concentrate, as well as leading all marketing and advertising initiatives for its products. The manufacturing and packaging company also gets to specialize in optimizing their manufacturing process to reduce overhead costs. Distribution Channels Supermarkets, general merchandisers, and food service establishments are the main outlets where soft drinks are sold. The three collectively sell over 70% of sales. It is, therefore, critical that we enter into contracts and deals that will ensure our products reach these outlets since this is where the majority of customers buy from. Other means by which we can get out products to enter the market involve the vending machine operators, where also a lot of sales can be made. The secret to having the best distribution is to use the primary distribution
  • 8. channels, but also explore new ways such as online distribution, which can achieve the same results in a more efficient, convenient and cheaper fashion. Risks Associated with the Soft Drinks Industry The non-alcoholic beverage industry faces numerous risks associated with this line of business some of which if not adequately mitigated, may cause detrimental loss and disruption of its normal operations. Some of the significant operational risks stem from the stiff regulations and laws imposed by the government within which the beverage company operates. The risk of litigation and hefty government penalties are some of the main risks that such a soft drinks company may suffer. This risk emanates from, among others, the regulations put in place by the food standards agencies mandated to control the food and additive components of any beverage to ensure that the drinks are indeed safe for human consumption both in the short-term and in the long-term. For instance, the US Food and Drug Administration recently gave a report indicating that several soft drinks contained benzene levels that were above the recommended 5ppb. Such a report may result in the imposition of substantial penalties on the affected companies, not to mention the legal suits from concerned consumers of the products involved (Pear, 2011). Market risk is another major concern for the non-alcoholic beverage industry. The ever changing market dynamics in any given region creates new dimensions of the demand and supply of the soft drink products. Health concerns associated with the beverages pose a new headache for the manufacturers who are now subject to numerous laws that affect their businesses adversely in more ways than one. The emergence of many players in this industry also means that the growing number of competition will bring about a serious threat to both the existing and upcoming soft drinks beverage companies. Loss of a substantial market is a nightmare for any organization and could mean the beginning of its downfall, and therefore, most companies will fight hard to maintain their market share, if not
  • 9. grow it. Currency risk is also a critical concern for those firms companies that have operations beyond the United States. The foreign exchange rates are always changing. Although the USD may be getting stronger, the same may not be said about the other currencies. Any volatility in the political and economic well-being of a country will have some effect on the exchange rate of its currency, and this could adversely affect the operations of the multinational soft drink company. Such risks may, however, be mitigated by the use of hedging when drawing any international contracts (Jorion, 1990). SWOT Analysis SWOT analysis refers to a planning tool used to identify the strengths, weaknesses, opportunities and threats that exist both in the internal and external organizational environment, in a bid to help in making decisions that will assist the firm to the attain its goals and objectives. SWOT analysis, therefore, helps a firm to make better decisions and improve it business operations (Westhues, Lafrance, & Schmidt, 2001). The strengths and weaknesses relate to internal factors while opportunities and threats relate to factors external to the firm. The following is a SWOT analysis of my hypothetical detox beverage company (Goodrich, 2015). Strengths –The most outstanding strength in this company is the wealth of over 10years of experience that is possessed by two of our top managers, and if we harness this then we can go on to become a great beverage firm. We also have a excellent technical team who will help us use the best technology to run and distribute our product. We also offer superior products. Weaknesses- We are facing very stiff competition in the industry against some of the largest soft drink companies in the world. Poor marketing and advertising also hamper our growth. Our low market share is also a major weakness, compounded by low brand awareness. Opportunities- There are numerous opportunities for new international markets in emerging economies which can enhance
  • 10. organizational performance. The rising demand for healthy beverages is also a huge chance for us to gain more market share. Threats- There is the possibility of our competition overwhelming us with competitive pricing by other beverage firms, which calls for us to institute prudent measures aimed at cost reduction. Water is getting scarcer by the day and costlier and being an essential ingredient, this may make our products more expensive. In conclusion, for one to succeed in the non-beverage industry, an extension SWOT analysis is necessary, as is innovation and superior product offering. This will allow the company to leverage on its strengths while keeping in consideration the threats and opportunities posed by the environment. Target Market Analysis The product will mainly target the American adults with a particular emphasis on minority races like the African- Americans and those from the Hispanic community. The targeted consumer’s age will range from 35 – 75 years. The consumers will, at least, have high school level education with little to no income since the product will be availed at affordable prices. The target market will include both male and female who come from all the ethnic groups in America but mostly the African-Americans and white adults (Shaw, 2012). The estimated population of Greensboro, NC is approximately 56.5 thousand with the adult male and female between the ages of 35-75 making up roughly 49% of the population. Around 58% of the population is African Americans while the white make up an estimated 33.5% of all the people in the area. Over 85% of the population have attained a high school diploma or higher (Factfinder.com). Market Competition Assessment EX-Cleanz will face direct competition from in-store products sold at the local CVS and Wal-Mart stores and Juice bars that claim to provide organic cleansers and indirect competition from companies selling juice cleanses online such
  • 11. as Blueprint Cleanse and Life Juice Shop as opposed to natural juices. Many of these natural juices are marketed under Coca- Cola and Pepsi ,they are businesses that are already established with their brand names familiar globally. They, therefore, possess stronger financial power and popularity among the consumers. Due to their massive capital base, they can advertise through practically every available channel, and can produce more and distribute better. For this reason, competing with them is bound to be an uphill task. Also, the indirect competitors consistently pose the threat of converting consumers from purchase detox cleanses to making their own natural, organic cleanse at home for a fraction of the cost. Their main selling strategy for their products is their alleged health benefits that come with them and the convenience of them being pre-packaged. Strategy for Competing With Market Leaders EZ-Cleanze will first and foremost strive to establish its market niche. Competing with brands such Blueprint Cleanse and Life Juice Shop may prove impossible. Therefore, the company will resort to narrow down its target market to a size which the company can comfortably customize the detox drink for them. However, competition will most likely also be present in the new niche and for the reason EZ-Cleanze will now make efforts to set itself apart from the competition. This will be achieved by the company doing what the competition is not doing regarding product quality and keeping up with the trends in the industry. EZ-Cleanze will also work hard to satisfy the consumers. This will be done by ensuring high-quality products at all times. Customer satisfaction more often than not results in customers talking about the product and ultimately spreading the brand awareness in the process. Also, the company will grab market share by heavily investing in campaigns, which will help create brand awareness and reach the consumer. Differentiating EZ-Cleanze products from those of the competition is important for the company, through differentiation, will be able to shake up the market share
  • 12. controlled by the industry leaders. Having a good strategy will, therefore, ensure that the company’s product will be able to move from “just another detox drink” to a recognized and affordable detox drink. Company message EZ-Cleanze detox drinks are guaranteed to be natural and organic that will provide consumers with healthy on-the-go alternatives contrasting products that other retailers offer. It provides a quench the consumers thirst and at the same time can refresh the mind, body and spirit. The drinks will be sold at pocket-friendly prices to ensure savings on the consumer’s part. The products will be available in all leading stores in the city in easy to carry and environmentally friendly containers. The detox drink represents the new generation of adults that want to live healthy lives who make up the culturally diverse world that we currently live. EZ-Cleanze will in the future continue to dedicate resources to conserving the environment and unifying the different cultures in the world (Lamb, 2013). Marketing Vehicle EZ-Cleanze will use the internet, social media to be particular, as its primary vehicle for its marketing. Social media will be selected as the primary marketing vehicle for its numerous benefits. Firstly, it is one of the most efficient methods of increasing the brand awareness and recognition. Secondly, through interacting via social media with the consumers, consumer loyalty towards the brand will significantly increase. Social media provides an excellent opportunity to convert visitors to customers. Marketing campaigns on social media platforms are notably cheaper compared to channels such as billboards or television commercial. Lastly, social media is one of the most effective platforms for getting consumer feedback (Lamb, 2013). The success of social media as a campaign vehicle for non- alcoholic beverage can be demonstrated in the success that the Coca-Cola Company has recently enjoyed with its “share a coke campaign”. During this campaign, consumers could place an
  • 13. order for a coke bottle with a customized message through a dedicated Facebook app. This campaign led to an 870% increase in the traffic on the company’s Facebook page, and this ultimately translated to over 7% increase in the total sales of the soft drink (Grimes, 2013). Ethics & Social Responsibility Plan Good corporate citizen Business organizations are basically set to serve the people through their products and services as well as the opportunities they offer to the people. Taking this into consideration, a business can be perceived as a citizen to a nation because it serves the nation and pays taxes. EZ-Cleanz is a business organization that is committed to be a good corporate citizen through the following efforts: Creating jobs One of the greatest aspects of any organization especially in the business sector is creation of job (Hill & Gareth, 2012). The organization needs to run and therefore needs manpower for the same. In this case, EZ-Cleanz is a manufacturing organization which implies that it needs a considerably large number of people to run. As a good corporate citizen, the business will create jobs for the locals to enable them afford a decent life. One of the best ways that companies can be good corporate citizens is by creating jobs especially for the individuals from the local society; it is a great way of boosting their economy through corporate social responsibility. Adhering to rules and regulations There are rules and regulations in different areas that govern how business should run. For instance, businesses are required to pay for licenses and permits as well as taxes. They are also supposed to meet various minimum requirements. As a good corporate citizen, EZ-Cleanz observes all rules and regulations required in order to run business. In this case, the business is being a good corporate citizen to the government. Following the law enables businesses to work easier because they are recognized by the government.
  • 14. Fair treatment of employees Employees are the greatest assets of any organization because without them no operations can go on. It is therefore necessary to make sure that they are treated fairly to get their best services. EZ-Cleanz treats all citizens in the same manner; it does not favor or oppress any. All employees get fair treatment from the management team. This move has enabled the organization to be a good corporate citizen. Non-discrimination of employees As stated earlier, the organization does not discriminate its employees because it perceives them as having equal value to the organization. To make this move more important, the company embraces diversity in the sense that it hires employees from different cultures and ethnicities. Social venture One of the goals of the organization as a social venture is to make sure the environment is kept clean so that people can live happily (Weiss, 2009). The environment is among the most valuable aspects in life therefore it must be kept clean for the benefit of all. EZ-Cleanz has made this as one of its priorities. In order to reach this goal, the company uses environmental friendly manufacturing processes. The waste products are treated before being discharged to make sure that they are harmless to the environment. The company also makes use of reusable energy that is environmental friendly. In addition to this the company encourages the users of its products to dispose packages in a safe manner that is least harmful to the environment. This company is a social venture because it is intended to impact the society in a positive way. It is a detox beverage company and this implies that it is interested in improving the social lives of the people. The business is chosen as a social venture because it is concerned about the people around it. Its efforts are geared towards making sure that the society lives a social life that is beneficial to them. Effect of company activities on the environment
  • 15. As a beverage company, there are several ways through which activities can affect the environment. One of the ways is disposal of waste products to the environment through water discharges and fumes. Industrial processes usually have possible effects on the environment through a variety of ways. It is the responsibility of the organization to make sure its activities are less harmful to the environment. Another possible way through which the organization can affect the environment is through its choice of packaging. After the beverages have been used, most consumers would through the bottles or packages anywhere really minding the effect on the environment. Despite the fact that this is an act of irresponsibility from the consumers, the manufacturing company is equally responsible. In order to mitigate these negative effects on the environment, the company has taken several steps (Weiss, 2009). As mentioned earlier, the company is engaging in renewable energy as well as treatment of its waste products to make sure they do not affect the environment. In addition to this, the company is packaging its products in recyclable or reusable containers in a move to eliminate negative effects on the environment. Health issues The beverages manufactured by EZ-Cleanz are beneficial in terms of health because of the nutritional value. The beverages are specifically designed for detoxing and this comes along with several health benefits. Consumers have a better appetite for food and their sugar levels in the body are normalized. As a detoxing beverage company, EZ-Cleanz products have additional health benefits to consumers. A routine use of the product is healthy to consumer as it boosts even their immune system. In order to mitigate any negative claims about the beverages, the company will concentrate on making sure that it observes all standards required in manufacturing its products (Hill & Gareth, 2012). It will also focus on using the best quality raw materials to make sure that the finished product is
  • 16. of the highest quality possible. It should be noted that products might have negative effects on the health of the people and measures should be put in place to eliminate this. It is the responsibility of the manufacturer to take care of such an issue through the best way possible. Marketing of the product To make sure that the products attract the right consumers that will not be affected in a negative way there will be adequate information about the right consumers. For instance, the persons under the age of 18 do not qualify to use the product. Individuals on specific medications will also not be recommended to use the products. Distribution will be to specific areas to make sure that only the target market is reached. References Factfinder.com. http://factfinder.census.gov/faces/tableservices/jsf/pages/produc tview.xhtml?src=CF. Grimes, T. (2013). The Guandian. http://www.theguardian.com/media-network/media-network- blog/2013/jul/24/share-coke-teach-brands. Date accessed: February 12, 2016 Goodrich, R. (2015). SWOT Analysis: Examples, templates & definition. BusinessNewsDaily, 1-10. Hill, C. & Gareth, R. (2012). Strategic management theory: An integrated approach. London: Cengage Learning. Jorion, P. (1990). The Exchange-Rate Exposure of U.S. Multinationals. The Journal of Business, 331-345. Lamb, E. (2013). ACP Marketing. Mason OH: Cengage Publishers. Moores, S. (2007). Experts warn of detox diet dangers. NBC News Pear, R. (2011). Soft Drink Industry Fights Proposed Food
  • 17. Stamp Ban. New York Times. Publishing, Worldwide Music Series, Market. (2012). n Market Reports n Industry Trends n Demographic Data 2012. Health Care, 1-106. Shaw, E. H. (2012). Marketing Strategy From Origin of Concept to Conceptual Framework. Journal of Historical Research, 30-55. Steen, D. P. (2007). Carbonated Soft Drinks: Formulation and Manufacture. Carbonated Soft Drinks: Formulation and Manufacture, 1-248. Weiss, J. (2009). Business ethics: A stakeholder and issues management approach with cases. Mason, OH: South-Western Cengage Learning. Westhues, A., Lafrance, J., & Schmidt, G. (2001). A SWOT analysis of social work education in Canada. Social Work Education: The International Journal, 35–56. Running Head: OPERATIONS, TECHNOLOGY AND MANAGEMENT PLAN 1 OPERATIONS, TECHNOLOGY AND MANAGEMENT PLAN Assignment 3: Part 1 - Operations, Technology and Management Plan Sabrina WalkerProfessor Jefferson BUS 599: Strategic Management March 6, 2016
  • 18. Operation, technology and management plans Operations plan Introduction Operations plan is an important element in the success of any business. This type of plan is developed by the business management to ensure that all the business operations of a particular organization are conducted in an efficient and effective way. In this case, the company to for which the operations plan is develop is called EZ-Cleanz and it is a non- alcoholic beverage products based company. The role of the management in EZ Cleanz Company is to ensure every member of the organization works as a team towards the realization of the business objectives(Summary, 2012). This section therefore seeks to develop a clear and detailed plan for this non-alcoholic beverage company on how to operate effectively. Key aspects The first key aspect that is involved in the development of an operations plan is to set the organizational strategies. EZ- Cleanz deals with beverages that are non-alcoholic and there are certain strategies that are needed to ensure that the organization realized its goals within the beverage industry. The company will need to conduct a research on what resources are required to initiate the EZ-Cleanz non-alcoholic beverage company. There should be a massive session for advertisement to ensure the goals that are set are attained(Ries, 2011). There is also need to carry out a master program for the sake of competition. EZ-Cleanz needs to develop products that serve a particular market segment. To effectively determine the market for EZ-Cleanz, the company has to do a simple SWOT analysis for the existing companies and develop a perceptual map. This will help the company identify the market segment that is underserved by the current product brands and align its operations so as to serve this segment.
  • 19. The strengths and challenges for the company also need to be identified. This is aimed at identifying the sectors that the company can utilize to grab the competitive advantage in the industry. As part of the operations plan, there should be a communication plan that ensures the employees and the management have a common meeting at least once a month of once a year to ensure that they communicate the strategic decisions for the company. The employees and the management also need to have a daily communication plan that ensures urgent issues in the business operations are identified early and communicated to the relevant staff. Time and cost efficiencies Various business operations should be undertaken under strict deadlines. All deadlines must be effectively projected and attained for the business to grow and achieve its goals. A visit to EZ-Cleanz should be done monthly with all the company stakeholders expected to be part of the visiting team. Advertisement should also be done as discussed earlier and the approximate costs here should be $100 per month before EZ- Cleanz becomes fully operational. The startup is to begin on March of this year and be finalized in August. During this period, the events are to be conducted twice a month so as to achieve the goals set. Competitive advantage To meet that competitive edge, the company should ensure personal responsibilities are clearly defined and the employees take them as routine(Davila & Foster, 2007). EZ Cleanz needs to come up with various sections called departments that will be mandated to undertake various tasks to ensure the company grows. For instance, the company needs to have sales and promotion department to ensure the beverages are advertised properly. There is also need to have a research and development department that will be responsible for conducting industry researches so that the beverage brands released by EZ- Cleanz are fresh and better in the market. Challenges and solutions
  • 20. The major challenge in for the new market entrants is the unfair competition that they face. Equally, EZ-Cleanz faces similar challenge from the already established non-beverage companies. However, with effective strategies and efforts from the management and the employees, the company will quickly break even and grab the competitive advantage. The company also has a challenge of developing a brand and customer loyalty to its beverage brands before it gains market grounds. The above challenges can be overcome by deploying effective strategies. Countermeasures include proper research and development on the market so as to produce quality beverages is required in the market. The company will also outsource some of the production resources to ensure it gains the competitive advantage. Since there are limited resources for EZ-Cleanz, just like any other startup, the company needs to obtain expert and skilled personnel and other production resource so as the business goals can be achieved. Technology plan This plan is essential in EZ-Cleanz Startup Company in that it plays a very important role of ensuring the key technical aspects and also defining the future of the business through modern technological solutions. A technology plan will be developed in such a way that it focuses on 3 or 5 years and in between these years, the plan will be updated regularly(Ries, 2011). Technology is very dynamic and if well utilized, it can help the company realize its goals as anticipated. Software Digital technology is the kind of technology that will be utilized in EZ-Cleanz to ensure its continued success. All the employees and the business operations will be monitored and controlled in a digital way. This technology involves software applications that will be deployed by the company to ease the process of order tracking, inventory management and also manage production process. Such software applications include third party application of which some are based on the cloud. Cloud
  • 21. computing software applications will be help maintains the security of organizational infrastructure as well as maintaining high productivity(Michael E. Bratman, 1999). An example is when some of the customers will be able to book their beverages online or even chat online with the distributors to help deliver their products. Online payment system is also necessary to accompany online ordering system. Hardware Hardware part of the organization involves various networking devices and equipment that will be implemented to ensure the employees and management in the company communicate effectively. Computer networking is very essential especially when the company needs a reliable and effective means of sharing information. Such devices include computers, routers, switches and firewalls. Telecommunication Telecommunication equipment will also be needed for distant sharing of information. This is very helpful to maintain relations with distant customers. Telecommunication equipment that will be deployed includes telephony, teleconferencing, use of satellite communication and also video conferencing techniques(Michael E. Bratman, 1999). These techniques will be aligned with the business policies and ensure the company realized its vision. Management and Organization This section looks at EZ-Cleanz’s management structure and the hierarchy of the management. The organization will include various departments and departmental heads as discussed earlier to enable conduct business operations effectively. Key employees EZ-Cleanz will have the following employees; · Packaging employees · Packaging supervisors · Machinery operators · Accountants · Sales representatives
  • 22. However, the company is expected to grow and expand in future so that additional employees can be employed to oversee some of the activities. Advisors The advisory committee for EZ-Cleanz Company will consist of individual who will be providing relevant guidance to the management officers and the staff members as well. The members of this committee will be outsourced from the non- alcoholic beverage industry and they will be as follows; · Marketing and sales director · Human resource manager · Packaging and branding director · General operations manager · Communication and IT officer · Administrative and financial manager Starting from the senior management, the hierarchy of management within the EZ-Cleanz will be as follows; IT manager Beverage distributors Sales representatives Technical staff Machinery operators Packaging personnel Administrative and Financial manager Operations Manager Marketing and sales manger President (EZ-Cleanz Company) References Davila, A., & Foster, G. (2007). Management control systems in
  • 23. early-stage startup companies. Accounting Review, 82(4), 907– 937. http://doi.org/10.2308/accr.2007.82.4.907 Michael E. Bratman. (1999). Intention, Plans, and Practical Reason. Intention, Plans, and Practical Reason. http://doi.org/10.2307/2185304 Ries, E. (2011). The Lean Startup. Working Paper. http://doi.org/23 Summary, E. (2012). Business Plan for a Startup Business. SCORE.org, 1–31.