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Running head: OPERATION, TECHNOLOGY, AND
MANAGEMENT PLAN 1
OPERATION, TECHNOLOGY, AND MANAGEMENT PLAN
2
Operation, Technology, and Management Plan
Crystal Perkins
Dr. Tony Muscia
BUS 599 Strategic Management
August 24, 2015
New vision is a large-scale non- alcoholic beverage company
located in the competing surroundings of New York City. The
new business being on its start-up phase is propelled to
penetrate new markets on the fast growing economy. Due to the
increased opportunities in the market, new vision Beverage
Company is looking forward to improve its competitive
advantage. The company aims at ensuring their products are
positioned to ensure that they offer quality service and
satisfaction to the customers. The company is also focused on
ensuring that it provides different types of non-alcoholic brands
that match the quality and taste preferences of the customers.
In order to be able to grow, the company is looking forward to
ensure that it improves its responsiveness and flexibility to
customer demands. In addition, for it to achieve full potential,
the company is formulating strategies that seek to improve
functionality between areas of manufacturing and marketing.
The company marketing strategy is majorly based on ensuring
that it provides customers with the products they need. It is also
serves on providing information visibility to ensure that the
consumers have full knowledge of the company’s products.
Operations plan for NAB Company
The major purpose of the new vision non-alcoholic beverage
company’s business plan is to raise $900,000 for the total
expansion of the company. It plans to raise $100,000 from bank
loan while, the other remaining amount will be raised by the
company stakeholders. While planning is done, two categories
of people will be taken into consideration. These include; the
working class that involves portion of marketing and
administrative personnel and corporate class, constituting
middle and top managers who appreciate the quality non-
alcoholic drinks. The company’s competitive strategies will be
used on both levels to balance and improve on quality. It will
also be used in meeting targets, improving the implementation
process and coming up with new technological innovations. On
functional level, the management will ensure that recruitment of
good sales representatives is done. The management will also
promote quality management and effective production
processes. On the other hand, business-level strategies will
serve to ensure goals, policies, procedures, mission and visions
are achieved. The business level strategies will also be put in
place to provide efficient processes that minimize on cost,
maintain tight overhead on costs and over productions and
geared towards minimizing cost of sales.
Start-up Summary
The company total expenses and capital add up to
approximately $100,000. On the other hand, start-up assets
required by the company including acquisition of plant
,machinery, vats, refrigerators, burners, ovens, bottling
equipment’s, vehicles, furniture and other office equipment’s
add up to a total of $900,000.
After raising all the startup capital, the company will acquire
the main essential assets for its operations. It will also consider
renting or leasing some equipment’s in the next two years i.e.
machinery in order to balance the cost of operation.
The company’s SWOT analysis will have in place efficient
strategies that will help in enhancing the company’s
competitiveness in the market. The strengths of the non-
alcoholic drink will seek to offer diversified market segments
for the different beverages. They will also improve
opportunities through internet marketing, innovation and
penetration to new market for non- alcoholic drink. Weaknesses
involved include lack of reputation, financial problems, and
technological challenges. Threats facing the company include
existing competition from established brands in the market like
coca cola, Pepsi and increases in prices caused by foreign
suppliers
The company will improve on its competitiveness by coming up
with efficient marketing strategy. The strategies will aim at
ensuring the right products are offered to the customer at the
right time. The company will continuously improve on research
to close competition gaps in technology, new markets,
innovations, improvements in new products and market
segmentation. Strategies for improving marketing will be put in
place to ensure good relationship between management,
suppliers, retailers and distributors.
Create a technology plan for your NAB
There is high competition from key players in the industry such
as Coca-Cola, Pepsi Company, monster Beverage Corporation.
The new vision company main goal is to provide a competitive
technological approach to produce beverages such as bottled
water, energy drinks, soft drinks and fruit beverages. The
company is focused on ensuring that it adopts latest
technological innovations to provide quality non-alcoholic
beverages. The company will also adopt management of
information systems to improve decision making process. This
system will also be used to improve information flow and
performance. The process will also ensure that communication
between the customers and the company is facilitated by
ensuring smooth information flow.
The new vision company will also introduce enterprise resource
planning system in order to ensure the company is able to
coordinate business processes in different location. This system
will help the management in planning, managing and controlling
different department across the organization such as finance,
human resource department and inventory management. In
addition, adoption of supply chain management processes will
be used in fulfilling track orders, managing inventories,
improving supplier’s relationships and improving customer
service
Create a management plan for your NAB Company
The vision NAB Company comprises of different stakeholders.
The management personnel have a good knowledge of the
products the company intends to offer in the market. Therefore,
if well executed, the management plan will enable the company
achieve its goals and objectives. The style of management will
directly reflect the organization subordinates. The company will
also ensure that it supports community developments through
producing quality practices and adopting good practices. The
company’s continuous efforts will be focused on ensuring
ongoing initiatives are supported in order to increase sales,
market share and performance.
The company’s management plan will strive to ensure that a
competitive pay packages are set for subordinates in order to
improve their performance. It will also ensure that the products
are competitive and satisfy the consumer needs. Open
communication between the top management and staff members
will be improved to facilitate open decision making process.
The company will also introduce a reward system where
contribution relating to successful implementation of strategies
will be highly rewarded to increase performance.
The management will also come up with a plan to ensure that it
implements human resource strategies that provide address
issues such as:
· Improvements in Communication processes through different
channels of organization to facilitate transparency and openness
· Training and development of employees in order to ensure
they possess the required skills necessary in achieving the
company goals.
· Addressing and promoting human rights in order to ensure
basic rights within the organization and community are
addressed.
· Establishing good organizational structures that promote
working relationships among the workers in the company.
Organizational structure for the company
Extracted from
References
Barrow, C., Barrow, P., & Brown, R. (2012). The business plan
workbook. London: Kogan Page.
Blackwell, E. (2008). How to prepare a business plan. London:
Kogan Page.
Bleisch, S. (2015). Database Models. Gitta.info. Retrieved 25
August 2015, from
http://www.gitta.info/DBSysConcept/en/html/DataModSchem_le
arningObject1.html
Duhigg, C. (2012). The power of habit. New York: Random
House.
Jeffs, C. (2008). Strategic management. Los Angeles: SAGE.
Assignment 3: Part 2: Business Plan - Draft
Crystal Perkins
Dr. Tony Muscia
BUS 599 Strategic Management
August 24, 2015
RUNING HEAD: BUINESS PLAN
1
BUSINESS PLAN
i
Contents
1. Company description 1
a. Company description 1
b. Industry analysis and trends 1
Industry analysis 1
Industry trends 4
c. Strategic positioning and risk assessment 5
Risks 6
d. Target markets. 7
e. Competition 7
f. Marketing plan and sales strategy 8
2. Ethics and Social responsibility plan 9
a. Being a good citizen 10
b. Environmental care 11
c. Health issues. 12
d. Advertisements 12
References 14
Company description
This section contains a comprehensive description of the
company and the analysis of the wines industry. The section
also discusses the strategy alignment of the company as well
as the risk assessment of the firm. The sections goes ahead
to clarify the markets being targeted by the wines firm and the
competitor analysis. The final area that the section focuses
on is the marketing plan and the sales strategy to be
employed in making the firm successful.
a. Company description
The business is to be entitled Wine De Asti. This firm is to be
engaged in selling and making available of wines. The
company would provide white and red wines and provide the
different flavors as regular wines do as well. This is informed
by the decisions that there is a gap in the market of people
who do not require the used of hard beverages. The
company will make this available to all the wine lovers in
the locality at a variety of flavors.
The mission of the firm is to offer an inviting and sophisticated
beverage that does not lose the authenticity of our regular wine
experience. We are committed to finding high quality products,
which enhance its enjoyment, to maintaining the highest level
of expertise and professionalism in order to market and sell
these beverages.
b. Industry analysis and trends
Industry analysis
To make an in depth analysis of the nonalcoholic industry it
is necessary to use the potters five force models. This will be
an objective tool to help analyze this industry well. these
forces are the strengths of new entrants, rivalry among the
exiting firms in the industry, the threats of substitutes,
bargaining power of buyers and the bargaining power of
suppliers. In the USA, most of the wine, over 89 percent, is
produced in California (United States Department of
Agriculture , 2006)
There are fewer nonalcoholic outlets in the states that offer
quality wines that Wines Di Asti is planning. The exiting wine
sellers in the country, the entrance of this firm will be able to
revolutionize the industry in a significant way. Once the
customers have been satisfied, it will make it hard for them
to move to a rival wine cellar. This creates a unique
proposition for the firm. The new entrants in the in industry
therefore have a negligible effect on Wines Di Asti. This is also
due to the fact that the customer base is very huge
The rivalry of the existing firms in the industry is also very
minimal. This is due to the wide spread of the competing firms
in the industry. The wine sellers in a typical city are very few
and located far away from each other. The winner users are
specific to tastes and very loyal to a given brands and
would therefore not just use any brand. This therefore
reduces the rivalry among the firms which allows them to
make their own pricing without controlling the other firms.
The rivalry is therefore very favorable for the wines Di Asti
Since the red and the white wines have a known medical
value , it makes it impossible to have perfect substitutes.
The wines industry is not comparable to other beverages
such as beers and other alcoholic drinks. The varieties
exiting in the markets are also unable to perfectly sub
substitute each other. This therefore, makes the wines unique
and able to attract a better return to the business. The lack of
perfect substitutes for the white and red wines makes this
industry very suitable for the business to operate and venture
in.
The supplier in the wines industry plays a major role in
influencing the markets. This is because of the specific nature
of the wines industry. It takes time for the wined to be distilled
and be readily available to the end user consumers. Some of the
wines take toe to make and bring the quality that the customers
want. This therefore makes the supplier play significant roles in
the industry. Their influence is huge given this quality
specification as well as due to the fact that they are few
compared to other alcoholic drinks producers and suppliers.
This high bargaining power of the supplier is not well placed
for the busies that are to retail the wines such as wines Di
Asti. However, those can be countered by having an official
engagement with the suppliers through a contract where they
may not fail the retailer due to the consequences stipulated
in the official engagement. The USA is considered as the fourth
highest producer of wines in the world (Stevenson, 2005, p.
462)
The buyers on the other hand have some bargaining powers
but is less compared to the suppliers. The customers are
specific to certain tastes and qualities but do not mind the
prices. This makes it win-win situation for the retailer and the
customer since they are able to foot the cost of getting the
specific quality they want. Having the customers with a lower
bargaining power makes the business be in control of the
business but also the relatively good bargaining power they
have makes the firm to listen to them
According to the porter five force model, the industry is
regarded as being good when the threat from the new
entrants is minimal, the rivalry is positive and less
threatening , there are no available substitutes , the
bargaining power of the supplier and the sellers is minimal.
For the above, the wines industry faces all the positive
indicators except for the bargaining powers of the suppliers
(Porter, 2008).
Industry trends
The nonalcoholic beverages usage is on the increase in the
country. This is because of the increasing concerns of the
population to their health. The majority of the Americans are
becoming very sensitive of their health needs and are aware of
the effect of the alcohol to their health. There has been a very
rigorous campaign in the globe against alcohol use that has led
to the increment of the non-alcoholic drinks use (Harfmann,
2015). This drink is therefore going to be helpful to the
drinkers as it will not bring any hangovers and will be useful to
the customers as they will drink and drive.
The wine industry has recorded an increment of 2 percent in
2013 and in 2014. However, the market has recorded an increase
in double digits of the use of blended wines. This includes a
blend of the red and white wines. The kegs have also been
showing a growth especially in the indoor and on premise
settings. This places a huge market potential of the new wines
that wines Di Asti is going to offer the markets. The average
prices in the markets have been constantly standing at $9-11
but in the recent past, these prices have been shooting up as
the citizens are ready to spend more . The industry is shifting
to more innovative branding in the markets. The markets has
seen mushrooming of new packaging, labeling and addition on
the wines. These addition includes vitamins and energy
enhancers. In addition it is estimated that a majority of the
social media users are wine takers (Thach, 2014).
c. Strategic positioning and risk assessment
To gain a market niche, the firm will explore several strategic
positioning strategies. The most important of them will be a
differentiation strategy. The wines and the services to be
offered by the firm will be uniquely packaged to ensure that the
customer needs and wants have been addressed. This will
include availing a package to the customers to include some
music in the wine bars. The packaging of the wines will also
vary from those prevailing in the ,markets to create a lower
unit that can be offered to the customers at all times. This
will also have a lower priced which makes the customers
always afford the wines even when they are unable to
purchase a full bottle or a full glass of the wines.
A reward scheme for the loyal and frequent customers will also
be explored to strategically place the firm in a better position
(Quast, 2012). This will help attract and retain more
customers.
In addition the firm will explore other strategy alignments that
enables it differentiate from the other wines sellers in the
market. This will include the adherence to the laws as well as
the moral obligation to the society. The firm will strictly
prohibit the sale of the wines to the minor in all its outlets and
even manage their entrance into the bars. The patron suspected
to be of the lower age will be require to identify themselves.
The patron also will not be sold excessive wines to an extent
that they can cause harm to themselves and the general public.
This will be a strategic alignment that will be unique in the
markets
Risks
There are several risks the firm is likely to face in its
operations. These risks must be well acknowledge in advance
to help the firm plan well for the mitigation elements to be put
in place. They are also capable of making the firm go under if
not well checked.
Financial risks may be faced by the firm from its inception,
running and continued growth of the firm. The financial risks
include the running out of funds for the startup and in the daily
operations of the business. This is so especially given that the
business are likely to make no significant returns in the first
year of operations. Other financial risks to be faced is being
unable to meet the supplier’s requirements which will in turn
make the firm lose its customer base. The best way to mitigate
this is having an elaborate financial plan that allows for
flexibly in the operations as well as putting in place safety
nets that may avert the financial fall down of this business
(Olson & Wu, 2008).
Operational risks may be faced in the future as the firm starts
operating. There may be hitched in the delivery of the wines
to the shop which in turn mean having stock out in the firm.
Although this may be experienced in the opening stages of the
firm, but their effects in the future will be devastating. This is
so as it will mean having dissatisfied and disoriented
customers when thy come to the bar and find that the firm is
out of stock of their preferred wines. The cause may be delays
in the ordering of the stocks, a huge lapse time between the
ordering and receipt of the stocks as well as due to unreliable
suppliers. To avert this the firm will have an elaborate stock
management system that will allow the placing of the order in a
good time. Reliable suppliers will also be identified and
healthy relationship built with them. The products will also be
transported by an insured vehicle and the wines themselves
insured to help mitigate risks that may occur while the goods
are on transit. (Meyer, 2009)
Economic risks may be faced by the firms. This may due to the
financial frustrations the firm may face due to dwindling sales.
This can also be caused by a change in the customer s
purchasing power due to a harsh economic condition in the
economy. The government can also make stringent economic
requirements that may have a negative effect on the overall
country’s macro and micro economic environments .
d. Target markets.
The target market for the wines Di Asti is the group of propel in
the society who mind their health condition but still want to
take beverages. This group consist of over 100 million wine
drinkers in the USA. Of this population the firm targets to
serve the 15 percent who are considered to be regular wine
drinkers (Thach, 2014) .
The wines Di Asti also targets those customers who are
seeking the enjoyment of the tastes , those seeking to
socialize with their friends as well as those seeking to relax.
It will also serve the customer who use the wines to pair it to
with their foods.
e. Competition
Wines Di Asti is going to face competition from the local wine
sellers in the town. Some of these retailer have been in
operation in the market for a longer period of time and have
established their place in the market. They may have an
established base of loyal customers who are hard to attract
from them. However wines Di Asti will employ a combination
of several factors to attract them.
The local retail shops such as the supermarkets are also to
provide some competition since they also stock the wines in
their shelves. However this competition is not significant given
the fact they do not have an elaborate place for the customers to
sit down, socialize and even be free to act out.
f. Marketing plan and sales strategy
The marketing strategy for the organization to sell the wines
will be an important aspect in ensuring that the wines are able
to sell in the markets. The plan will include the four Ps of
marketing
The wines di Asti products will include the red and white wines.
These wines will be sold out to the customer as tots, in
glasses and the sealed bottles from the various places
where the wines will be placed.
The wines will, be availed to customers in the various bars to be
opened. These bars will be open every day of the week within
the legally acceptable hours for the revelers to access them. The
bars are to be strategically located within the town for easier
and quick access by all the customers.
The bottled wines will be branded and sold out as sealed
secondary distilled wines in the bar, supermarkets and other
wine outlets in the towns. They will also be access from the
online platforms where the customers will be allowed to make
their orders. The customer will also be able to make orders
through a call and have the wines delivered to their locations
The wines will first be priced at a relatively lower price to
allow costumer attraction. This strategy will allow the products
to penetrate the markets easily. Once the business has attracted
enough customers, the prices will be increased marginally to
allow the company meet the financial obligations (McGuigan,
Moyer, & Arris, 2004). However this increment will be gradual
so as not to scar away the customers.
There will be a premium pricing of some of the wines. This is
meant to allow the firms attract some calls and prestige. This
wine will bring in a new cache of customer who are affluent in
the society and are looking for class. They will also be
accorded a special place in the bars where they can interact and
socialize among themselves easily.
The products will be advertised on various channels that will
reach the customers. This will include the preparations of
several fliers that will be distributed to the potential customers
at various strategic places. There will also be posters that will
be distributed in the public places concerning the wines
available and the prices as well as the various offers.
Online platforms will also be used to advertise the wines. There
will be adverts placed in the social media sites such as
Facebook, LinkedIn, twitter and the Instagram. The adverts are
better placed since they can be accessed any time of the day
from any location. They also can be customized to suit any
target customer
The first batch of the wines will be sold on a promotional basis.
This will act as bait as once they have tasted and sampled out
our wines, they are likely to be attracted to the product and
therefore become loyal customers for a long period of time.
1. Ethics and Social responsibility plan
For any business in the globe acting socially responsibly and
in an ethical way is great tool for both marketing and financial
security. This is because of the fact that the customer of the
business are the members of the society and therefore should
be treated with a lot of respect and dignity (Markgraf, 2013).
Wines di Asti as a corporate person in the society will strive
to act responsibly and in the most ethical manner to ensure
its survival . This plan details in depth how this will be
carried out by the business. Its shareholders, and all the other
stakeholders.
a. Being a good citizen
The firm will employ a combination of both labor and capital
intensive method of productions. This will also the firm to
create opportunities to the member of the community. The
opportunities will include job and income opportunity to help
improve the living standards of the society.
Observing the laws of the land will be at the core of the
business. The firm will be decentralized to allow each
operating unit be able to address the specific need of the
legislations in every place they are operating. The managers
found to be violating the laws will be disciplined accordingly
and face the full force of the laws concerned
Treating employees with dignity and respect is one of the core
values of the business. This will be in line with the legal
requirements of the labor laws concerning the remunerations,
leaves and working conditions. The firm will offer competitive
packages to the employees to ensure that they are able to
perform their duties in the appropriate manner. The firm will go
the extra mile of training and developing the employees so that
they can realize their dream within the firm (Quast, 2012). The
employees will be provided with the right working gear to
protect them from any danger in the workplace. In addition, the
Human resource will always have a listening ear to the needs
and demands of the employees. The firm will always negotiate
with the employees on the matters that are affecting them and
find an amicable solution to the problem. All these are meant to
ensure that the employees are motivated and minimize the
employee turnover (Gibb, 2011 ) .
Diversity in the workforce is highly encouraged in the firm.
This is meant to give every human being equal opportunity
without discrimination whatsoever on the basis of color, race,
religion or backgrounds (Saylor.org, 2014). The firm is going
to employ a cohesion strategy among all the people of the
globe since they are not only our employee but also our
customers and business partners.
b. Environmental care
The firm will also place a greater regard to the environmental
purity. This is due to that fact that the product then firm is
dealing with come from agriculture. For the business to
continue thriving, the farmers in the farm, where the raw
materials for the wines come from, must also be able to use
farming methods that are safe to the environment. The business
will not buy the product from manufactures and suppliers
that are not environmentally friendly and compliant. We will
also work closely with the farmers and the wine distillers to
explore better methods for the production ,transportation and
packaging of the wines in the most healthy and environmental
friendly manner (Green to Gold,2006).
The use of the glass bottle in packaging the wine has an impact
to the environment in a major ways. The glass are a non-
biodegradable material that is harmfully to the environment and
the animals as well, as human beings if disposed improperly.
The firm will work with the community to buy wine bottle from
them instead of allowing them to dispose them in the
environment. This will go a long way in ensuring that the
bottles have a minimal negative impact on the environment.
The firm will also be encouraging the farmers to use chemical
and the farm inputs that that are safe to the environment.
Water is greatly used in this industry from the growing of
the crops in the field to the distilling of the wines and the
cleaning of the rooms. The firm will encourage, as far as
possible, the users to ensure that they use water in the most
appropriate manner. The firm will explore other methods of
cleaning in the bars that does not require much water as well as
encourage the manufacturer to use the water in the most
appropriate manner.
c. Health issues.
The wines and other beverages that are use have health related
issues if they are abused. The products that we are dealing
with may have a devastating health effects on the users if they
are misused. This includes the diseases such a liver cirrhosis
and kidney stones. Besides this , the wines when used to
intoxicating levels affects the person decision making and
may be unsuitable for them to make decisions. The wines if
contaminated are very poisonous.
To mitigate against these affect the firm will employ several
measures. First, the wines will not be solved to any miners or a
person who is suspected to be a minor. Secondly, the packaging
of the wines will be closely monitored to ensure that they are
not contaminated while on transit and while in the shelves or
even when they are being offered to the customers in the bar.
The bar will closely monitor their patrons to ensure that they do
not drink themselves silly. This is meant to ensure that they not
only maintain good decision making status but also are able to
check their health as well as ensure their own safety and that of
others.
d. Advertisements
The beverage and advertisements are at times too much broad
that they may affect certain category of the population aspect.
One of most affected category is the minor who may get the
wrong image from the adverts. As a means of acting socially
responsible and ethically, the firm will employ several measures
in its adverts. The first instance is not allowing minors into the
bars run by the firms. The patron will be required to be on the
majority age and be required to prove this in case there is any
doubt.
The adverts to be placed in the public places must only carry
the most relevant information. They will not contain any adult
content as this may not be good ethically. The adverts must
carry a huge disclaimer that is printed in bold showing the
negative effect of the wines. Such disclaimers will help deter
the unwanted category of the society. On the online platform,
the adverts are also to be designed in a way that they do not
contain any adult content or misleading information. They will
place on the sites where the account owners are required to
prove that they are of the majority age. Some of the most
specific adverts will, be place in the specific owner pages or
emails of the patrons who have proved their ages and are users
of the wines.
The distribution channels to be used are meant to ensure that
the customers are bale to aces the wines from the authorized
places only. The wines will not be sold in public places where
there is no control. This will be another measure besides the
above to ensure that only the targeted population able access to
the wines. The firm will also be very strictly with any other
person going to be giving our product to the uncategorized
citizens such as minors
References
Gibb, S. (2011 ). Human Resource Development: Foundations,
Process, Context. Palgrave Macmillan.
Green to Gold,. (2006). ECO-PLAYS FRAMEWORK. Retrieved
May 29, 2015, from http://www.eco-
advantage.com/pdf/ECOPlaysFramework.pdf
Harfmann, B. (2015). 2015 State of the Beverage Industry:
Imported, craft brews dominate growth. Retrieved from
http://www.bevindustry.com/
Markgraf, B. (2013, june 03). Legal & Ethical Issues in
International Business Expansion. Retrieved August 18, 2015,
from http://smallbusiness.chron.com/legal-ethical-issues-
international-business-expansion-68066.html
Meyer, M. W. (2009). ethinking performance measurement:
Beyond the balanced scorecard. Cambridge, UK: Cambridge
University Press.
McGuigan, J. R., Moyer, R. C., & Arris, F. H. (2004).
Managerial economic: aplication strategy and tactics (13 ed.).
Stamford city: Cengage Learning.
Olson, D. L., & Wu, D. D. (2008). Enterprise Risk Management.
World Scientific.
Porter, M. E. (2008). The Five Competetive Forces thta shape
Strategy . Harvard business Review, 86-104.
Quast, L. (2012, may 14). Want Your Company To Succeed in
the Future? Invest in Employee Skills Training Like Deloitte
LLP. Retrieved from
www.forbes.com/sites/lisaquast/2012/05/14/want-your-
company-to-succeed-in-the-future-invest-in-employee-skills-
training-like-deloitte-llp/
Saylor.org. (2014). Human Resource Management. Retrieved
from http://www.saylor.org/books
Stevenson, T. (2005). The Sotheby's Wine Encyclopedia (fourth
ed.). Dorling Kindersly.
Thach, L. (2014, march 26). Trends in the Wines Industry.
Retrieved from https://lizthach.wordpress.com/2014/03/26
United States Department of Agriculture . (2006). Global Wines
Report . United States Department of Agriculture .
Sheet1Current year "$ 00"Year 1 "$ 00"Labor and material
cost50004000sub-total50004000Public relations Press
tours600500Road shows350300PR firm200200Press release
development5045Press release fees7065Press kit
materials320300Analyst subscription fees3030sub-
total16201440Web marketingGoogle AdWord
program120115yahoo Ad program 7065Miscrosft Ad
program8585Web development charges110100Online advertsing
fee4530Search Engine Optimization (SEO)cost8055sub-
total510450AdvertisingTelevision adverts200185Radio
adverts140125Creative development charges5055sub-
total1025900TOTALS. "$ 00"81556790
Wine De Asti Company Estimated budget for Beverage Launch
Sheet2
Sheet3
Assignment 1: Company Description and SWOT Analysis
Crystal Perkins
Dr. Tony Muscia
Strategic Management
July 20, 2015
The name of My NAB Company is Wine De Asti. The
significance of the beverage is for wine lovers who enjoy the
taste of different wines but no longer indulge in alcoholic
beverages. The company would provide white and red wines and
provide the different flavors as regular wines do as well. We
would target clubs and lounges for those nights on the town,
where adults whom no longer indulge in alcoholic beverages
would like to enjoy a nice beverage other than water, soda, or
juice, while others enjoy a nice glass a wine.
Our Mission is to offer an inviting and sophisticated beverage
that does not lose the authenticity of your regular wine
experience. We are committed to finding high quality products,
which enhance its enjoyment, to maintaining the highest level
of expertise and professionalism in order to market and sell
these beverages.
The nonalcoholic beverages usage is on the increase in the
country. This is because of the increasing concerns of the
population to their health. The majority of Americans are
becoming very sensitive of their health needs and are aware of
the effect of alcohol to their health. There has been a very
rigorous campaign in the globe against alcohol use that has led
to the increment of the non-alcoholic drinks use (Harfmann,
2015). This drink is therefore going to be helpful to the
drinkers as it will not bring any hangovers and will be useful to
the customers as they will drink and drive.
A differentiation strategy is the most appropriate strategy for
the product. This will allow the products to be distinct from the
other products in the market; Differentiation can be achieved by
having a unique packaging and the pricing. The product should
not be lowly priced as it would create a cheap impression and
low quality in the eyes of the customers.
The channels of distribution for the beverages will be a
combination of several channels. The first outlets will be in the
local retail store such as the supermarkets. This will enable the
shoppers in these huge stores to access the drinks with a lot of
ease. The drinks will also be availed to local food joints such as
fast food restaurants and hotels. This will help the company
reach out to the patrons eating in these hotels. In most cases,
these are the people who do not like to take alcoholic drinks.
The drinks will also be available in the entertainment joints
throughout the major towns. This will be targeting the
customers in the entertainment joints who may not be using the
alcoholic drinks.
There are financial risks associated with these drinks. This
includes the risks that the drinks may not be able to bring
profitable returns to the company due to the low sales volumes.
Financial risks also include the risks of running out of finances
to produce the products or bring the products to the market.
This is mitigated by having an elaborate financial plan and
insuring the process (Olson & Wu, 2008).
There are Operational risks faced by the company. These risks
relates to the daily operations and management of the products
distribution. At times, there may lack coordination and control
necessary to ensure smooth distribution of the products. There
are also security risks for the products while on transit as they
may be vandalized or damaged. (Meyer, 2009) The mitigation
include accurate coordination and insuring the products while
on transit
There are risks associated with the dwindling of the target
customers in their purchasing power. The soft drinks sector is
majorly affected by the level of income of the customers that
may dwindle any time (Olson & Wu, 2008). Customers’
preferences may also change rapidly making the company invest
in the expansion in vain.
The strengths for the products are the health and diverse flavor
provided by the drink. This creates an edge over the other
drinks. The weakness is the lack of much differentiation from
the readily available drinks on the market. The products act as
perfect substitutes for each other and may not bring an
addiction. The opportunity of the products is the increasing
heath awareness of the population to the need of taking
nonalcoholic and healthy drinks. This makes the drinks have a
huge market potential.
The major threat for the company is the huge competition from
the industry well established firms such as Coca Cola and Pepsi.
The ongoing campaign may make the customers confuse the
product as being alcoholic.
References
Harfmann, B. (2015). 2015 State of the Beverage Industry:
Imported, craft brews dominate growth. Retrieved from
http://www.bevindustry.com/
Meyer, M. W. (2009). ethinking performance measurement:
Beyond the balanced scorecard. Cambridge, UK: Cambridge
University Press.
Olson, D. L., & Wu, D. D. (2008). Enterprise Risk Management.
World Scientific.

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Running head OPERATION, TECHNOLOGY, AND MANAGEMENT PLAN1OPER.docx

  • 1. Running head: OPERATION, TECHNOLOGY, AND MANAGEMENT PLAN 1 OPERATION, TECHNOLOGY, AND MANAGEMENT PLAN 2 Operation, Technology, and Management Plan Crystal Perkins Dr. Tony Muscia BUS 599 Strategic Management August 24, 2015 New vision is a large-scale non- alcoholic beverage company located in the competing surroundings of New York City. The new business being on its start-up phase is propelled to penetrate new markets on the fast growing economy. Due to the increased opportunities in the market, new vision Beverage Company is looking forward to improve its competitive advantage. The company aims at ensuring their products are positioned to ensure that they offer quality service and satisfaction to the customers. The company is also focused on
  • 2. ensuring that it provides different types of non-alcoholic brands that match the quality and taste preferences of the customers. In order to be able to grow, the company is looking forward to ensure that it improves its responsiveness and flexibility to customer demands. In addition, for it to achieve full potential, the company is formulating strategies that seek to improve functionality between areas of manufacturing and marketing. The company marketing strategy is majorly based on ensuring that it provides customers with the products they need. It is also serves on providing information visibility to ensure that the consumers have full knowledge of the company’s products. Operations plan for NAB Company The major purpose of the new vision non-alcoholic beverage company’s business plan is to raise $900,000 for the total expansion of the company. It plans to raise $100,000 from bank loan while, the other remaining amount will be raised by the company stakeholders. While planning is done, two categories of people will be taken into consideration. These include; the working class that involves portion of marketing and administrative personnel and corporate class, constituting middle and top managers who appreciate the quality non- alcoholic drinks. The company’s competitive strategies will be used on both levels to balance and improve on quality. It will also be used in meeting targets, improving the implementation process and coming up with new technological innovations. On functional level, the management will ensure that recruitment of good sales representatives is done. The management will also promote quality management and effective production processes. On the other hand, business-level strategies will serve to ensure goals, policies, procedures, mission and visions are achieved. The business level strategies will also be put in place to provide efficient processes that minimize on cost, maintain tight overhead on costs and over productions and geared towards minimizing cost of sales. Start-up Summary
  • 3. The company total expenses and capital add up to approximately $100,000. On the other hand, start-up assets required by the company including acquisition of plant ,machinery, vats, refrigerators, burners, ovens, bottling equipment’s, vehicles, furniture and other office equipment’s add up to a total of $900,000. After raising all the startup capital, the company will acquire the main essential assets for its operations. It will also consider renting or leasing some equipment’s in the next two years i.e. machinery in order to balance the cost of operation. The company’s SWOT analysis will have in place efficient strategies that will help in enhancing the company’s competitiveness in the market. The strengths of the non- alcoholic drink will seek to offer diversified market segments for the different beverages. They will also improve opportunities through internet marketing, innovation and penetration to new market for non- alcoholic drink. Weaknesses involved include lack of reputation, financial problems, and technological challenges. Threats facing the company include existing competition from established brands in the market like coca cola, Pepsi and increases in prices caused by foreign suppliers The company will improve on its competitiveness by coming up with efficient marketing strategy. The strategies will aim at ensuring the right products are offered to the customer at the right time. The company will continuously improve on research to close competition gaps in technology, new markets, innovations, improvements in new products and market segmentation. Strategies for improving marketing will be put in place to ensure good relationship between management, suppliers, retailers and distributors. Create a technology plan for your NAB There is high competition from key players in the industry such as Coca-Cola, Pepsi Company, monster Beverage Corporation. The new vision company main goal is to provide a competitive technological approach to produce beverages such as bottled
  • 4. water, energy drinks, soft drinks and fruit beverages. The company is focused on ensuring that it adopts latest technological innovations to provide quality non-alcoholic beverages. The company will also adopt management of information systems to improve decision making process. This system will also be used to improve information flow and performance. The process will also ensure that communication between the customers and the company is facilitated by ensuring smooth information flow. The new vision company will also introduce enterprise resource planning system in order to ensure the company is able to coordinate business processes in different location. This system will help the management in planning, managing and controlling different department across the organization such as finance, human resource department and inventory management. In addition, adoption of supply chain management processes will be used in fulfilling track orders, managing inventories, improving supplier’s relationships and improving customer service Create a management plan for your NAB Company The vision NAB Company comprises of different stakeholders. The management personnel have a good knowledge of the products the company intends to offer in the market. Therefore, if well executed, the management plan will enable the company achieve its goals and objectives. The style of management will directly reflect the organization subordinates. The company will also ensure that it supports community developments through producing quality practices and adopting good practices. The company’s continuous efforts will be focused on ensuring ongoing initiatives are supported in order to increase sales, market share and performance. The company’s management plan will strive to ensure that a competitive pay packages are set for subordinates in order to improve their performance. It will also ensure that the products are competitive and satisfy the consumer needs. Open communication between the top management and staff members
  • 5. will be improved to facilitate open decision making process. The company will also introduce a reward system where contribution relating to successful implementation of strategies will be highly rewarded to increase performance. The management will also come up with a plan to ensure that it implements human resource strategies that provide address issues such as: · Improvements in Communication processes through different channels of organization to facilitate transparency and openness · Training and development of employees in order to ensure they possess the required skills necessary in achieving the company goals. · Addressing and promoting human rights in order to ensure basic rights within the organization and community are addressed. · Establishing good organizational structures that promote working relationships among the workers in the company. Organizational structure for the company Extracted from References Barrow, C., Barrow, P., & Brown, R. (2012). The business plan workbook. London: Kogan Page. Blackwell, E. (2008). How to prepare a business plan. London: Kogan Page. Bleisch, S. (2015). Database Models. Gitta.info. Retrieved 25 August 2015, from http://www.gitta.info/DBSysConcept/en/html/DataModSchem_le arningObject1.html Duhigg, C. (2012). The power of habit. New York: Random House. Jeffs, C. (2008). Strategic management. Los Angeles: SAGE.
  • 6. Assignment 3: Part 2: Business Plan - Draft Crystal Perkins Dr. Tony Muscia BUS 599 Strategic Management August 24, 2015 RUNING HEAD: BUINESS PLAN 1 BUSINESS PLAN i Contents 1. Company description 1 a. Company description 1 b. Industry analysis and trends 1 Industry analysis 1 Industry trends 4 c. Strategic positioning and risk assessment 5 Risks 6 d. Target markets. 7 e. Competition 7 f. Marketing plan and sales strategy 8 2. Ethics and Social responsibility plan 9 a. Being a good citizen 10 b. Environmental care 11 c. Health issues. 12 d. Advertisements 12 References 14
  • 7. Company description This section contains a comprehensive description of the company and the analysis of the wines industry. The section also discusses the strategy alignment of the company as well as the risk assessment of the firm. The sections goes ahead to clarify the markets being targeted by the wines firm and the competitor analysis. The final area that the section focuses on is the marketing plan and the sales strategy to be employed in making the firm successful. a. Company description The business is to be entitled Wine De Asti. This firm is to be engaged in selling and making available of wines. The company would provide white and red wines and provide the different flavors as regular wines do as well. This is informed by the decisions that there is a gap in the market of people who do not require the used of hard beverages. The company will make this available to all the wine lovers in the locality at a variety of flavors. The mission of the firm is to offer an inviting and sophisticated beverage that does not lose the authenticity of our regular wine experience. We are committed to finding high quality products, which enhance its enjoyment, to maintaining the highest level of expertise and professionalism in order to market and sell these beverages. b. Industry analysis and trends Industry analysis To make an in depth analysis of the nonalcoholic industry it is necessary to use the potters five force models. This will be
  • 8. an objective tool to help analyze this industry well. these forces are the strengths of new entrants, rivalry among the exiting firms in the industry, the threats of substitutes, bargaining power of buyers and the bargaining power of suppliers. In the USA, most of the wine, over 89 percent, is produced in California (United States Department of Agriculture , 2006) There are fewer nonalcoholic outlets in the states that offer quality wines that Wines Di Asti is planning. The exiting wine sellers in the country, the entrance of this firm will be able to revolutionize the industry in a significant way. Once the customers have been satisfied, it will make it hard for them to move to a rival wine cellar. This creates a unique proposition for the firm. The new entrants in the in industry therefore have a negligible effect on Wines Di Asti. This is also due to the fact that the customer base is very huge The rivalry of the existing firms in the industry is also very minimal. This is due to the wide spread of the competing firms in the industry. The wine sellers in a typical city are very few and located far away from each other. The winner users are specific to tastes and very loyal to a given brands and would therefore not just use any brand. This therefore reduces the rivalry among the firms which allows them to make their own pricing without controlling the other firms. The rivalry is therefore very favorable for the wines Di Asti Since the red and the white wines have a known medical value , it makes it impossible to have perfect substitutes. The wines industry is not comparable to other beverages such as beers and other alcoholic drinks. The varieties exiting in the markets are also unable to perfectly sub substitute each other. This therefore, makes the wines unique and able to attract a better return to the business. The lack of perfect substitutes for the white and red wines makes this industry very suitable for the business to operate and venture in. The supplier in the wines industry plays a major role in
  • 9. influencing the markets. This is because of the specific nature of the wines industry. It takes time for the wined to be distilled and be readily available to the end user consumers. Some of the wines take toe to make and bring the quality that the customers want. This therefore makes the supplier play significant roles in the industry. Their influence is huge given this quality specification as well as due to the fact that they are few compared to other alcoholic drinks producers and suppliers. This high bargaining power of the supplier is not well placed for the busies that are to retail the wines such as wines Di Asti. However, those can be countered by having an official engagement with the suppliers through a contract where they may not fail the retailer due to the consequences stipulated in the official engagement. The USA is considered as the fourth highest producer of wines in the world (Stevenson, 2005, p. 462) The buyers on the other hand have some bargaining powers but is less compared to the suppliers. The customers are specific to certain tastes and qualities but do not mind the prices. This makes it win-win situation for the retailer and the customer since they are able to foot the cost of getting the specific quality they want. Having the customers with a lower bargaining power makes the business be in control of the business but also the relatively good bargaining power they have makes the firm to listen to them According to the porter five force model, the industry is regarded as being good when the threat from the new entrants is minimal, the rivalry is positive and less threatening , there are no available substitutes , the bargaining power of the supplier and the sellers is minimal. For the above, the wines industry faces all the positive indicators except for the bargaining powers of the suppliers (Porter, 2008). Industry trends
  • 10. The nonalcoholic beverages usage is on the increase in the country. This is because of the increasing concerns of the population to their health. The majority of the Americans are becoming very sensitive of their health needs and are aware of the effect of the alcohol to their health. There has been a very rigorous campaign in the globe against alcohol use that has led to the increment of the non-alcoholic drinks use (Harfmann, 2015). This drink is therefore going to be helpful to the drinkers as it will not bring any hangovers and will be useful to the customers as they will drink and drive. The wine industry has recorded an increment of 2 percent in 2013 and in 2014. However, the market has recorded an increase in double digits of the use of blended wines. This includes a blend of the red and white wines. The kegs have also been showing a growth especially in the indoor and on premise settings. This places a huge market potential of the new wines that wines Di Asti is going to offer the markets. The average prices in the markets have been constantly standing at $9-11 but in the recent past, these prices have been shooting up as the citizens are ready to spend more . The industry is shifting to more innovative branding in the markets. The markets has seen mushrooming of new packaging, labeling and addition on the wines. These addition includes vitamins and energy enhancers. In addition it is estimated that a majority of the social media users are wine takers (Thach, 2014). c. Strategic positioning and risk assessment To gain a market niche, the firm will explore several strategic positioning strategies. The most important of them will be a differentiation strategy. The wines and the services to be offered by the firm will be uniquely packaged to ensure that the customer needs and wants have been addressed. This will include availing a package to the customers to include some music in the wine bars. The packaging of the wines will also vary from those prevailing in the ,markets to create a lower
  • 11. unit that can be offered to the customers at all times. This will also have a lower priced which makes the customers always afford the wines even when they are unable to purchase a full bottle or a full glass of the wines. A reward scheme for the loyal and frequent customers will also be explored to strategically place the firm in a better position (Quast, 2012). This will help attract and retain more customers. In addition the firm will explore other strategy alignments that enables it differentiate from the other wines sellers in the market. This will include the adherence to the laws as well as the moral obligation to the society. The firm will strictly prohibit the sale of the wines to the minor in all its outlets and even manage their entrance into the bars. The patron suspected to be of the lower age will be require to identify themselves. The patron also will not be sold excessive wines to an extent that they can cause harm to themselves and the general public. This will be a strategic alignment that will be unique in the markets Risks There are several risks the firm is likely to face in its operations. These risks must be well acknowledge in advance to help the firm plan well for the mitigation elements to be put in place. They are also capable of making the firm go under if not well checked. Financial risks may be faced by the firm from its inception, running and continued growth of the firm. The financial risks include the running out of funds for the startup and in the daily operations of the business. This is so especially given that the business are likely to make no significant returns in the first year of operations. Other financial risks to be faced is being unable to meet the supplier’s requirements which will in turn
  • 12. make the firm lose its customer base. The best way to mitigate this is having an elaborate financial plan that allows for flexibly in the operations as well as putting in place safety nets that may avert the financial fall down of this business (Olson & Wu, 2008). Operational risks may be faced in the future as the firm starts operating. There may be hitched in the delivery of the wines to the shop which in turn mean having stock out in the firm. Although this may be experienced in the opening stages of the firm, but their effects in the future will be devastating. This is so as it will mean having dissatisfied and disoriented customers when thy come to the bar and find that the firm is out of stock of their preferred wines. The cause may be delays in the ordering of the stocks, a huge lapse time between the ordering and receipt of the stocks as well as due to unreliable suppliers. To avert this the firm will have an elaborate stock management system that will allow the placing of the order in a good time. Reliable suppliers will also be identified and healthy relationship built with them. The products will also be transported by an insured vehicle and the wines themselves insured to help mitigate risks that may occur while the goods are on transit. (Meyer, 2009) Economic risks may be faced by the firms. This may due to the financial frustrations the firm may face due to dwindling sales. This can also be caused by a change in the customer s purchasing power due to a harsh economic condition in the economy. The government can also make stringent economic requirements that may have a negative effect on the overall country’s macro and micro economic environments . d. Target markets. The target market for the wines Di Asti is the group of propel in the society who mind their health condition but still want to take beverages. This group consist of over 100 million wine drinkers in the USA. Of this population the firm targets to serve the 15 percent who are considered to be regular wine drinkers (Thach, 2014) .
  • 13. The wines Di Asti also targets those customers who are seeking the enjoyment of the tastes , those seeking to socialize with their friends as well as those seeking to relax. It will also serve the customer who use the wines to pair it to with their foods. e. Competition Wines Di Asti is going to face competition from the local wine sellers in the town. Some of these retailer have been in operation in the market for a longer period of time and have established their place in the market. They may have an established base of loyal customers who are hard to attract from them. However wines Di Asti will employ a combination of several factors to attract them. The local retail shops such as the supermarkets are also to provide some competition since they also stock the wines in their shelves. However this competition is not significant given the fact they do not have an elaborate place for the customers to sit down, socialize and even be free to act out. f. Marketing plan and sales strategy The marketing strategy for the organization to sell the wines will be an important aspect in ensuring that the wines are able to sell in the markets. The plan will include the four Ps of marketing The wines di Asti products will include the red and white wines. These wines will be sold out to the customer as tots, in glasses and the sealed bottles from the various places where the wines will be placed. The wines will, be availed to customers in the various bars to be opened. These bars will be open every day of the week within the legally acceptable hours for the revelers to access them. The bars are to be strategically located within the town for easier and quick access by all the customers. The bottled wines will be branded and sold out as sealed secondary distilled wines in the bar, supermarkets and other wine outlets in the towns. They will also be access from the online platforms where the customers will be allowed to make
  • 14. their orders. The customer will also be able to make orders through a call and have the wines delivered to their locations The wines will first be priced at a relatively lower price to allow costumer attraction. This strategy will allow the products to penetrate the markets easily. Once the business has attracted enough customers, the prices will be increased marginally to allow the company meet the financial obligations (McGuigan, Moyer, & Arris, 2004). However this increment will be gradual so as not to scar away the customers. There will be a premium pricing of some of the wines. This is meant to allow the firms attract some calls and prestige. This wine will bring in a new cache of customer who are affluent in the society and are looking for class. They will also be accorded a special place in the bars where they can interact and socialize among themselves easily. The products will be advertised on various channels that will reach the customers. This will include the preparations of several fliers that will be distributed to the potential customers at various strategic places. There will also be posters that will be distributed in the public places concerning the wines available and the prices as well as the various offers. Online platforms will also be used to advertise the wines. There will be adverts placed in the social media sites such as Facebook, LinkedIn, twitter and the Instagram. The adverts are better placed since they can be accessed any time of the day from any location. They also can be customized to suit any target customer The first batch of the wines will be sold on a promotional basis. This will act as bait as once they have tasted and sampled out our wines, they are likely to be attracted to the product and therefore become loyal customers for a long period of time. 1. Ethics and Social responsibility plan For any business in the globe acting socially responsibly and in an ethical way is great tool for both marketing and financial security. This is because of the fact that the customer of the business are the members of the society and therefore should
  • 15. be treated with a lot of respect and dignity (Markgraf, 2013). Wines di Asti as a corporate person in the society will strive to act responsibly and in the most ethical manner to ensure its survival . This plan details in depth how this will be carried out by the business. Its shareholders, and all the other stakeholders. a. Being a good citizen The firm will employ a combination of both labor and capital intensive method of productions. This will also the firm to create opportunities to the member of the community. The opportunities will include job and income opportunity to help improve the living standards of the society. Observing the laws of the land will be at the core of the business. The firm will be decentralized to allow each operating unit be able to address the specific need of the legislations in every place they are operating. The managers found to be violating the laws will be disciplined accordingly and face the full force of the laws concerned Treating employees with dignity and respect is one of the core values of the business. This will be in line with the legal requirements of the labor laws concerning the remunerations, leaves and working conditions. The firm will offer competitive packages to the employees to ensure that they are able to perform their duties in the appropriate manner. The firm will go the extra mile of training and developing the employees so that they can realize their dream within the firm (Quast, 2012). The employees will be provided with the right working gear to protect them from any danger in the workplace. In addition, the Human resource will always have a listening ear to the needs and demands of the employees. The firm will always negotiate with the employees on the matters that are affecting them and find an amicable solution to the problem. All these are meant to ensure that the employees are motivated and minimize the employee turnover (Gibb, 2011 ) . Diversity in the workforce is highly encouraged in the firm. This is meant to give every human being equal opportunity
  • 16. without discrimination whatsoever on the basis of color, race, religion or backgrounds (Saylor.org, 2014). The firm is going to employ a cohesion strategy among all the people of the globe since they are not only our employee but also our customers and business partners. b. Environmental care The firm will also place a greater regard to the environmental purity. This is due to that fact that the product then firm is dealing with come from agriculture. For the business to continue thriving, the farmers in the farm, where the raw materials for the wines come from, must also be able to use farming methods that are safe to the environment. The business will not buy the product from manufactures and suppliers that are not environmentally friendly and compliant. We will also work closely with the farmers and the wine distillers to explore better methods for the production ,transportation and packaging of the wines in the most healthy and environmental friendly manner (Green to Gold,2006). The use of the glass bottle in packaging the wine has an impact to the environment in a major ways. The glass are a non- biodegradable material that is harmfully to the environment and the animals as well, as human beings if disposed improperly. The firm will work with the community to buy wine bottle from them instead of allowing them to dispose them in the environment. This will go a long way in ensuring that the bottles have a minimal negative impact on the environment. The firm will also be encouraging the farmers to use chemical and the farm inputs that that are safe to the environment. Water is greatly used in this industry from the growing of the crops in the field to the distilling of the wines and the cleaning of the rooms. The firm will encourage, as far as possible, the users to ensure that they use water in the most appropriate manner. The firm will explore other methods of cleaning in the bars that does not require much water as well as encourage the manufacturer to use the water in the most
  • 17. appropriate manner. c. Health issues. The wines and other beverages that are use have health related issues if they are abused. The products that we are dealing with may have a devastating health effects on the users if they are misused. This includes the diseases such a liver cirrhosis and kidney stones. Besides this , the wines when used to intoxicating levels affects the person decision making and may be unsuitable for them to make decisions. The wines if contaminated are very poisonous. To mitigate against these affect the firm will employ several measures. First, the wines will not be solved to any miners or a person who is suspected to be a minor. Secondly, the packaging of the wines will be closely monitored to ensure that they are not contaminated while on transit and while in the shelves or even when they are being offered to the customers in the bar. The bar will closely monitor their patrons to ensure that they do not drink themselves silly. This is meant to ensure that they not only maintain good decision making status but also are able to check their health as well as ensure their own safety and that of others. d. Advertisements The beverage and advertisements are at times too much broad that they may affect certain category of the population aspect. One of most affected category is the minor who may get the wrong image from the adverts. As a means of acting socially responsible and ethically, the firm will employ several measures in its adverts. The first instance is not allowing minors into the bars run by the firms. The patron will be required to be on the majority age and be required to prove this in case there is any doubt. The adverts to be placed in the public places must only carry the most relevant information. They will not contain any adult content as this may not be good ethically. The adverts must carry a huge disclaimer that is printed in bold showing the negative effect of the wines. Such disclaimers will help deter
  • 18. the unwanted category of the society. On the online platform, the adverts are also to be designed in a way that they do not contain any adult content or misleading information. They will place on the sites where the account owners are required to prove that they are of the majority age. Some of the most specific adverts will, be place in the specific owner pages or emails of the patrons who have proved their ages and are users of the wines. The distribution channels to be used are meant to ensure that the customers are bale to aces the wines from the authorized places only. The wines will not be sold in public places where there is no control. This will be another measure besides the above to ensure that only the targeted population able access to the wines. The firm will also be very strictly with any other person going to be giving our product to the uncategorized citizens such as minors References Gibb, S. (2011 ). Human Resource Development: Foundations, Process, Context. Palgrave Macmillan. Green to Gold,. (2006). ECO-PLAYS FRAMEWORK. Retrieved May 29, 2015, from http://www.eco- advantage.com/pdf/ECOPlaysFramework.pdf Harfmann, B. (2015). 2015 State of the Beverage Industry: Imported, craft brews dominate growth. Retrieved from http://www.bevindustry.com/ Markgraf, B. (2013, june 03). Legal & Ethical Issues in International Business Expansion. Retrieved August 18, 2015, from http://smallbusiness.chron.com/legal-ethical-issues- international-business-expansion-68066.html Meyer, M. W. (2009). ethinking performance measurement: Beyond the balanced scorecard. Cambridge, UK: Cambridge University Press. McGuigan, J. R., Moyer, R. C., & Arris, F. H. (2004).
  • 19. Managerial economic: aplication strategy and tactics (13 ed.). Stamford city: Cengage Learning. Olson, D. L., & Wu, D. D. (2008). Enterprise Risk Management. World Scientific. Porter, M. E. (2008). The Five Competetive Forces thta shape Strategy . Harvard business Review, 86-104. Quast, L. (2012, may 14). Want Your Company To Succeed in the Future? Invest in Employee Skills Training Like Deloitte LLP. Retrieved from www.forbes.com/sites/lisaquast/2012/05/14/want-your- company-to-succeed-in-the-future-invest-in-employee-skills- training-like-deloitte-llp/ Saylor.org. (2014). Human Resource Management. Retrieved from http://www.saylor.org/books Stevenson, T. (2005). The Sotheby's Wine Encyclopedia (fourth ed.). Dorling Kindersly. Thach, L. (2014, march 26). Trends in the Wines Industry. Retrieved from https://lizthach.wordpress.com/2014/03/26 United States Department of Agriculture . (2006). Global Wines Report . United States Department of Agriculture . Sheet1Current year "$ 00"Year 1 "$ 00"Labor and material cost50004000sub-total50004000Public relations Press tours600500Road shows350300PR firm200200Press release development5045Press release fees7065Press kit materials320300Analyst subscription fees3030sub- total16201440Web marketingGoogle AdWord program120115yahoo Ad program 7065Miscrosft Ad program8585Web development charges110100Online advertsing fee4530Search Engine Optimization (SEO)cost8055sub- total510450AdvertisingTelevision adverts200185Radio
  • 20. adverts140125Creative development charges5055sub- total1025900TOTALS. "$ 00"81556790 Wine De Asti Company Estimated budget for Beverage Launch Sheet2 Sheet3 Assignment 1: Company Description and SWOT Analysis Crystal Perkins Dr. Tony Muscia Strategic Management July 20, 2015 The name of My NAB Company is Wine De Asti. The significance of the beverage is for wine lovers who enjoy the taste of different wines but no longer indulge in alcoholic beverages. The company would provide white and red wines and provide the different flavors as regular wines do as well. We would target clubs and lounges for those nights on the town, where adults whom no longer indulge in alcoholic beverages would like to enjoy a nice beverage other than water, soda, or juice, while others enjoy a nice glass a wine. Our Mission is to offer an inviting and sophisticated beverage that does not lose the authenticity of your regular wine experience. We are committed to finding high quality products, which enhance its enjoyment, to maintaining the highest level of expertise and professionalism in order to market and sell these beverages. The nonalcoholic beverages usage is on the increase in the country. This is because of the increasing concerns of the population to their health. The majority of Americans are becoming very sensitive of their health needs and are aware of the effect of alcohol to their health. There has been a very rigorous campaign in the globe against alcohol use that has led to the increment of the non-alcoholic drinks use (Harfmann, 2015). This drink is therefore going to be helpful to the drinkers as it will not bring any hangovers and will be useful to
  • 21. the customers as they will drink and drive. A differentiation strategy is the most appropriate strategy for the product. This will allow the products to be distinct from the other products in the market; Differentiation can be achieved by having a unique packaging and the pricing. The product should not be lowly priced as it would create a cheap impression and low quality in the eyes of the customers. The channels of distribution for the beverages will be a combination of several channels. The first outlets will be in the local retail store such as the supermarkets. This will enable the shoppers in these huge stores to access the drinks with a lot of ease. The drinks will also be availed to local food joints such as fast food restaurants and hotels. This will help the company reach out to the patrons eating in these hotels. In most cases, these are the people who do not like to take alcoholic drinks. The drinks will also be available in the entertainment joints throughout the major towns. This will be targeting the customers in the entertainment joints who may not be using the alcoholic drinks. There are financial risks associated with these drinks. This includes the risks that the drinks may not be able to bring profitable returns to the company due to the low sales volumes. Financial risks also include the risks of running out of finances to produce the products or bring the products to the market. This is mitigated by having an elaborate financial plan and insuring the process (Olson & Wu, 2008). There are Operational risks faced by the company. These risks relates to the daily operations and management of the products distribution. At times, there may lack coordination and control necessary to ensure smooth distribution of the products. There are also security risks for the products while on transit as they may be vandalized or damaged. (Meyer, 2009) The mitigation include accurate coordination and insuring the products while on transit There are risks associated with the dwindling of the target customers in their purchasing power. The soft drinks sector is
  • 22. majorly affected by the level of income of the customers that may dwindle any time (Olson & Wu, 2008). Customers’ preferences may also change rapidly making the company invest in the expansion in vain. The strengths for the products are the health and diverse flavor provided by the drink. This creates an edge over the other drinks. The weakness is the lack of much differentiation from the readily available drinks on the market. The products act as perfect substitutes for each other and may not bring an addiction. The opportunity of the products is the increasing heath awareness of the population to the need of taking nonalcoholic and healthy drinks. This makes the drinks have a huge market potential. The major threat for the company is the huge competition from the industry well established firms such as Coca Cola and Pepsi. The ongoing campaign may make the customers confuse the product as being alcoholic. References Harfmann, B. (2015). 2015 State of the Beverage Industry: Imported, craft brews dominate growth. Retrieved from http://www.bevindustry.com/ Meyer, M. W. (2009). ethinking performance measurement: Beyond the balanced scorecard. Cambridge, UK: Cambridge University Press. Olson, D. L., & Wu, D. D. (2008). Enterprise Risk Management. World Scientific.