Running head BUSINESS PLAN .docx

Running head: BUSINESS PLAN
1
BUSINESS PLAN
5
Section 1: Business Plan
Author’s Name
Institutional Affiliation
Section 1: Business Plan
The name of the non-alcoholic company will be
Strawberry Rite since it is unique and appealing and gives the
company a positive public image. The company will major in
production of white and red non-alcoholic beverages with
various different tastes and flavors. The products will be sold in
night clubs, lounges and restaurants where nonalcoholic adults
enjoy their time. The company’s mission statement is “To be the
world’s premier producer of quality, sophisticated and
satisfying non-alcoholic wines and provide our customers with
the best tasting and healthy products without compromising the
authenticity of their regular wine experience”.
From the industry analysis and trends, the NAB industry
and market size is expected to grow rapidly and more
competitive due to the growing serious health problems that
relate to alcoholic beverages (Grand View Research, 2017).
North America is found to account for the largest NAB industry
following its well-developed economy and high living
standards. As well, the high number of aging population has
also resulted to low consumption of alcohol. Therefore, with the
changing market dynamics in the beverage industry, Strawberry
Rite Inc. will find it lucrative venturing in the NAB industry.
The company will be strategically located in VA
Chantilly which is hosting 23,029 people according to the US

Census Bureau (2010). The area borders one of the largest US
metropolitan area, Washington DC. These people often operate
of busy week schedule and visit hotels, restaurants, nightclubs
and other entertainment places in the weekend to have a good
time. This place is known for its recreational grounds like Fairs
Lake Virginia. People’s average income here is 121,141 dollars
which means most of the households can afford the drinks. In
this market,
The target market for the company are individuals who
don’t take alcoholic drinks, people who avoid alcoholic wines
due to health problems and general non-alcoholics.
As a new entrant into the industry, the company will face
competition from the big and well established non-alcoholic
beverage producers in the region. They include Mustang Sally
Brewing with a constant market share of 39%, Ocelot Brewing
Company with a growing market share of 37%. Other
competitors such as Coca-Cola, Pepsi, nestle and Bistros &bars
have a market share of 24%.
In marketing and sales, the company will use social
media such as twitter, Facebook and Instagram to relay
information to its customers. It will also use its website to allow
customers access new products and make online preorders
(Abrams, 2010). The company will also market through
billboards and use direct selling to reach its customers. The
company will distribute through forming joint ventures with
some established companies that are not competitors, referral
and affiliate programs and commercial trade shows.
However, Strawberry will have a competitive advantage
by producing smooth, high quality and good tasting wines,
many varieties of non-alcoholic brands, knowledgeable and
skilled marketing team and good marketing strategies, It’s
weaknesses are limited capital and high cost structure.
Opportunities include shift of society to NAB, international
markets and new technologies. Threats are legal changes and
intensifying competition. Strawberry will operate from its
headquarters in VA Chantilly and various small offices.

The technology plan is that wines will be kept in
refrigerating facilities and equipment to prevent spoilage. The
company will also use Microsoft office suite to perform daily
business activities including data entry, accounting, drafting
letters and memos and storage and data sharing. It will use
cloud computing in data management, processing and storage.
Hardware needs include computers, office phones, printers, hard
drives and wireless routers.
The management and organization of the company will
include the President, Sales and Marketing manager, production
manager, operations and finance manager, marketing,
advertising and packaging development team, Production,
Research and Development team and Personnel training.
The company will commit to ethics and social
responsibility by creating job opportunities for the local
community, fair and honest treatment of its employees, offer
career development programs, protection of environment and
adherence to state and federal laws.
References
Abrams, R. (2010). Successful Business Plan: Secrets &
Strategies Paperback. Planning
Shop. (ISBN: 978-1933895147).
Grand View Research, (2017). Nonalcoholic Beverage Market
Analysis By Product (CSD),
Fruit Beverage, Bottled Water, Functional Beverage,
Sports Drinks, By Distribution
Channel And Segment Forecasts, 2014-2025. Retrieved
February 2018 from
https://www.grandviewresearch.com/industry-
analysis/nonalcoholic-beverage-market
US Census Bureau, (2010). VA Chantilly facts. Retrieved from:
https://www.census.gov/2010census/ on August 6, 2017

IHP 330 Module Two Worksheet
Measuring Disease
A causal relationship between cigarette smoking and lung
cancer was first suspected in the 1920s on the basis of clinical
observations. To test this apparent association, numerous
epidemiologic studies were undertaken between 1930 and 1960.
Two studies were conducted by Richard Doll and Austin
Bradford Hill in Great Britain. The first was a case-control
study begun in 1947 comparing the smoking habits of lung
cancer patients with the smoking habits of other patients. The
second was a cohort study begun in 1951 recording causes of
death among British physicians in relation to smoking habits.
This case study deals first with the case-control study, then with
the cohort study.
Data for the case-control study were obtained from hospitalized
patients in London and vicinity over a four-year period (April
1948 – February 1952). Initially, 20 hospitals, and later more,
were asked to notify the investigators of all patients admitted
with a new diagnosis of lung cancer. These patients were then
interviewed concerning smoking habits, as were controls
selected from patients with other disorders (primarily
nonmalignant) who were hospitalized in the same hospitals at
the same time. Data for the cohort study were obtained from the
population of all physicians listed in the British Medical
Register who resided in England and Wales as of October 1951.
Information about present and past smoking habits was obtained
by questionnaire. Information about lung cancer came from
death certificates and other mortality data recorded during
ensuing years.
Over 1700 patients with lung cancer, all under age 75 were
eligible for the case-control study. About 15% of these persons
were not interviewed because of death, discharge, severity of
illness, or inability to speak English. An additional group of
patients were interviewed by later excluded when initial lung
cancer diagnosed proved mistaken. The final study group

included 1,465 cases (1,357 males and 108 females). The
following table shows the relationship between cigarette
smoking and lung cancer among male cases and controls:
Table 1
Cases
Controls
Cigarette Smoker
1,350
1,296
Nonsmoker
7
61
Total
1,357
1,357
1. Accurately calculate the proportion of cases that smoked. Be
sure to show your calculations.
2. Accurately calculate the proportion of controls that smoked.
Be sure to show your calculations.

3. Accurately calculate the odds ratio, with the correct equation.
What do you infer from the odds ratio about the relationship
between smoking and lung cancer?
Table 2 shows the frequency distribution of male cases and
controls by average number of cigarettes smoked per day.
Table 2: Daily cigarette consumption
Daily Number of Cigarettes
Number of Cases
Number of Controls
Odds Ratio
0
7
61
Referent
1–14
565
706
15–24
445
408
25+
340
182
All smokers
1350
1296
Total
1357

1357
4. Accurately calculate the odds ratios by category of daily
cigarette consumption, comparing each category to nonsmokers.
Be sure to show your calculations.
5. Interpret these results, and describe the trends or patterns you
see in the data.
Part 2: The Cohort Study
Data for the cohort study were obtained from the population of
all physicians listed in the British Medical Register who resided
in England and Wales as of October 1951. Questionnaires were
mailed in October 1951 to 59,600 physicians. The questionnaire
asked the physicians to classify themselves into one of three
categories: 1) current smoker, 2) ex-smoker, or 3) nonsmoker.
Smokers and ex-smokers were asked the amount they smoked,
their method of smoking, the age they started to smoke, and, if
they had stopped smoking, how long it had been since they last
smoked. Nonsmokers were defined as persons who had never
consistently smoked as much as one cigarette day for as long as
one year. Physicians were also asked whether or not they had a
diagnosis of lung cancer. Usable responses to the questionnaires
were received from 40,637 (68%) physicians, of whom 34,445
were males and 6,192 were females. The next section of this
case study is limited to the analysis of male physician
respondents, 35 years of age or older.
The occurrence of lung cancer in physicians responding to the
questionnaire was documented over a 10-year period (November
1951 through October 1961) from death certificates filed with

the Registrar General of the United Kingdom and from lists of
physician deaths provided by the British Medical Association.
All certificates indicating that the decedent was a physician
were abstracted. For each death attributed to lung cancer,
medical records were reviewed to confirm the diagnosis.
Diagnoses of lung cancer were based on the best evidence
available; about 70% were from biopsy, autopsy, or sputum
cytology (combined with bronchoscopy or X-ray evidence); 29%
were from cytology, bronchoscopy, or X-ray alone; and only 1%
were from just case history, physical examination, or death
certificate. In total, there were 355 cases of lung cancer during
this 10-year time period, with 255 newly diagnosed cases of
lung cancer.
Of 4,597 deaths in the cohort over the 10-year period, 157 were
reported to have been caused by lung cancer; in 4 of the 157
cases this diagnosis could not be documented, leaving 153
confirmed deaths from lung cancer.
The following table shows numbers of lung cancer deaths by
daily number of cigarettes smoked at the time of the 1951
questionnaire (for male physicians who were nonsmokers and
current smokers only). Person-years of observation ("person-
years at risk") are given for each smoking category. The number
of cigarettes smoked was available for 136 of the persons who
died from lung cancer.
Table 3: Number and rate (per 100,000 person-years) of lung
cancer deaths by number of cigarettes smoked per day, Doll and
Hill physician cohort study, Great Britain, 1951–1961.

Daily number of cigarettes smoked
Deaths from lung cancer
Person-years at risk
Mortality rate per 1,000 person-years
0
3
42,800
0.07
1–14
22
38,600
15–24
54
38,900
25+
57
25,100
All smokers
133
102,600
Total
136
145,400
6. Accurately calculates the lung cancer mortality rates for each
smoking category. Be sure to show your calculations.

7. Describe the trends or patterns you see in the data about
mortality, and explain what the trends or patterns mean.
8. Accurately calculate the incidence for lung cancer during the
10 year time period. Be sure to show your calculations.
9. Accurately calculate the prevalence for lung cancer during
this 10 year time period. Be sure to show your calculations.
This worksheet was modified using information from the
original case study found on the CDC website:
Centers for Disease Control. (2003). “Cigarette smoking and
lung cancer.” Centers for Disease Control and Prevention
Epidemiology Program Office Case Studies in Applied
Epidemiology, 731-703. Retrieved from:
https://www.cdc.gov/eis/downloads/xsmoke-student-731-
703.pdf
Strawberry Rite Inc.
Name
Institution

Due date
What We Do
Produce, distribute, and sell red and white non-alcoholic wine
brands.
Targets wine customers who don’t take alcoholic wines.
Quality non-alcoholic wine brands.
The Opportunity
Nonalcoholic beverage market set to grow by 1.6 trillion by
the year 2025 (Financial Times, 2016).
Increasing demand of nonalcoholic beverage due to health
reasons.
Non/low alcohol beverage industry has grown by 4% since 2011
(Financial Times, 2016).
Few competitors in the nonalcoholic wine industry.
Target Market
Wine lovers who don’t take alcoholic wine brands.
Individuals who don’t take alcohol wines due to health reasons.
General nonalcoholic beverage customers.
Market Size
Market size value in 2015= $1,548 billion (Grand View
Research, 2017).

Global market size= USD 967.3
Market has grown by 4% since 2011 (Grand View Research,
2017).
Expected market size by 2022=4.4
Competition
Current Competition
Dominated by Coca-Cola-market leader.
Other major competitors-Pepsi, Nestle, S.A, Dr. Pepper Snapple
Group Inc.
Non-alcoholic wine makers- Mustang Sally Brewing , Ocelot
Brewing Company , ARIEL Vineyards, HALAL Wines.
Competitive Advantages
High quality, smooth, and good tasting wines.
Wide variety of nonalcoholic brands.
Skilled and knowledgeable marketing team.
Fantastic Marketing Strategies.
The Team
Founder
Adamson Lomax: President
Experienced in operations, sales, and marketing management.
Advisory Committee
Linda Owens- sales manager
Vastly experienced in sales and marketing.
Gozbert Williamson-Production Manager
Experienced in production management
Business Model

Personnel selling
Online selling
Retail outlets
Wholesalers
Milestones
March, 2018-launched
September, 2018-Openned 3 retail stores within Chantilly VA.
March 2019-First Phase Complete
$246 K revenue
Sell 10,000 bottles each day
3 years-second phase complete
3 total million annual sales
2 production facilities
Financials
Profits Year 1 Year 2 Year 3 1 1.4 8
Revenue Year 1 Year 2 Year 3 2 2.5 3.5

Funding
Funds Sought: $2 million
Purchase of production equipment, marketing, staff
development, expansion of production facility.
Funding to date
$1 million investment- Adamson Lomax
$1 400k loans-Adamson Lomax/Morgan Stanley
No future funding rounds
Upside
Strong viable business opportunity.
No strong competition (in the nonalcoholic wine industry).
Tested and proven business concept.
Reference list
Grand View Research, (2017). "Nonalcoholic Beverage Market
Size Worth $1.60 Trillion By 2025". Retrieved January 22,
2018, from https://www.grandviewresearch.com/press-
release/global-nonalcoholic-beverage-market
Grand View Research, (2017). Industrial Alcohol Market Worth
$223. 63 Billion by 2025:CAGR: 8.8 % Retrieved from
https://www.grandviewresearch.com/press-release/global-
industrial-alcohol-market
Financial Times, (2016). "Financial TimesThirst for adult soft
drinks grows". Retrieved January 22, 2018, from
https://www.ft.com/content/a639e708-c767-11e6-8f29-
9445cac8966f

Running head: ETHICS & SOCIAL RESPONSIBILITY PLAN
1
ETHICS & SOCIAL RESPONSIBILITY PLAN
6
ETHICS & SOCIAL RESPONSIBILITY PLAN
5
Ethics & Social Responsibility Plan
BUS.599
Daniel Goldsmith, DBA
Strayer University
March 3, 2018
Describe the ways in which your company is committed to being
a good corporate citizen.
With the increasing competition in markets today, companies
are devising new methods to gain an edge in the market.
Corporate responsibility is increasingly becoming one effective
way through which a company can improve its image in the eyes
of stakeholders and the communities where it operates
(Paetzold, 2010). Strawberry Rite Inc. understands its long-
term societal and environmental impacts and for this reason, it
plans to incorporate them into its strategic plans as well as risk
management activities. Notably, Strawberry Rite Inc. will
carry out various corporate social responsibility initiatives
which will not be a gimmick meant to attract customers. On the

contrary, the various CSR initiatives will be genuinely and
authentically meant to improve the lives of the people within
the company and the community surrounding the company, and
also to ensure environmental safety.
Firstly, Strawberry Rite Inc. will seek to create job
opportunities in the surrounding community. The U.S and the
world at large, is facing a daunting challenge of unemployment,
especially among the youth. According to Bureau of Labor
Statistics, (2017), the rate of unemployment in the country
stands at 4.1%. This company will play a role in tackling
unemployment conundrum through various ways. Firstly, it will
partner with local academic institutions for its own talent needs.
By employing people from around who possess the required
skills and qualifications, the company will help to address the
challenge of unemployment in Washington DC. Secondly,
Strawberry Rite Inc. will partner with government and non-
profit organizations to train and educate the locals on how they
can start and run successful small businesses as part of the
solutions to the unemployment problem.
The second component of Strawberry Rite's CSR is the honest
and fair treatment of its employees. One of the fundamental
parts of Strawberry Rite Inc. organizational culture is employee
empowerment. As Millenials take a more dominant role in the
current workforce in the U.S, this company must take initiatives
to share their beliefs and values with its employees
(Bhattacharya et al, 2013). It will embrace a strong CSR
message that encourages its involvement of employees in
decision making. Employee buy-in will be encouraged in order
cultivate a sense of ownership among the employees. Next,
Strawberry Rite Inc. will embrace diversity by employing
persons from across all cultural, educational, racial, ethnic, and
religious backgrounds. It will also create policies and
procedures that support workplace diversity such as anti-
discrimination policies.
In addition, the company will build a culture whereby leaders
and managers listen carefully to employees, forgives mistakes,

praises efforts and improvements, and more importantly,
provides career growth opportunities. It is part of the company's
long-term plans to develop career development programs for its
employees such as tuition reimbursement for those who wish to
advance their education as well as in-house professional
training and certification. Lastly, it will encourage and support
employees to achieve work/life balance.
Discuss how your company's activities will affect the
environment and identify the steps you will take to mitigate any
negative impacts.
Environmental protection will also be a constitutive part of the
company's CSR plan. The company understands that some of its
activities, especially in its production faculties have an adverse
effect on the environment. As such, it will make a concerted
effort to make its activities as environmental-friendly as
possible. The first essential strategy in doing this is ensuring
full compliance with the local, state and federal environmental
protection laws, regulations, and standards.
Secondly, Strawberry Rite Inc. will reduce its waste as much as
possible through recycling of its bottles and used water. It will
emulate Coca-Cola's water stewardship approach by improving
its overall water-use efficiency, manages its wastewater and
proper discharge of stormwater at its plants (Haynes et al,
2012). Next, the company will use of biodegradable materials,
auditing its facilities, going paperless and measuring the amount
of waste it produces each day.
Thirdly, Strawberry Rite Inc. will encourage its supply chain
stakeholders to embrace environmentally and socially
responsible activities in order to increase their environmental
performance. For instance, the company will closely monitor
and evaluate its suppliers' and distributor's social and
environmental practices. As the company grows, it will start to
contribute towards environmental protection initiatives both
locally and country-wide.
Determine any health issues/claims related to the product you
are making, whether negative or positive. Suggest the strategy

your company will use to mitigate any negative issues and to
ensure any positive claims are true.
Unlike alcoholic wine brands produced by other companies
which have adverse health effects on consumers, Strawberry
Rite's nonalcoholic wines will do the contrary- help prevent the
negative health effects of alcoholic beverages. For instance,
Strawberry Rite's wine brands will be suitable for breastfeeding
mothers, diabetic individuals, and those with other health
problems that don't allow them to take alcoholic beverages.
Another benefit of Strawberry Rite's wines is that they are low
in calories.
Many beverage products have negative health impacts on certain
segments of a population (e.g., children, pregnant mothers,
etc.). Suggest your company's plan, through advertising,
distribution, and/or other methods, to target and reach only
appropriate market segments.
Just like the other beverage companies, Strawberry Rite is
required by law to provide its consumers with information
regarding any negative impacts of its products. Fortunately,
products, as pointed earlier, are healthy and beneficial to
individuals with health problems such as heart disease, and
diabetes. It is safe for everyone including pregnant mothers.
However, in its advertisements, Strawberry Rite will ask parents
who might be uncomfortable with their children taking its
products to intervene.
References
Bhattacharya, C. B., Sen, S., & Korschun, D. (2013). Using
corporate social responsibility to win the war for talent.
Haynes, K., Murray, A., & Dillard, J. (Eds.). (2012). Corporate
social responsibility: A research handbook. Routledge.
Paetzold, K. (2010). Corporate Social Responsibility as an
International Marketing Approach. diplom. de.
United States of Labor, (2017). Bureau of Labor Statistics.
Retrieved from https://data.bls.gov/timeseries/LNS14000000

How to use this templateHow to use this templateSave the
template (XLT file) to your computer. Double-click on it to
create a new plan, then follow these steps:Step 1Set a starting
point for your projectionsStart date1/3/18Step 2Set-up costsUse
the set-up costs sheet to calculate the cost of setting up your
business.Step 3Profit and loss forecastForecast your month-by-
month profit and loss for the first 12 months of operations.
Enter sales in the month when they're invoiced, rather than the
month when they're paid.Step 4Cash flow forecastForecast your
month-by-month cash flow for the first 12 months of operations.
Enter sales revenue in the month when it's received, rather than
the month when it's invoiced.Step 5Balance sheet
forecastForecast your balance sheet position at the end of the
first 12 months of operation. The balance sheet draws on the
figures you've entered in your profit and loss forecast.Step
6Break-even analysisFind out how many sales you need to make
in the first 12 months to cover your fixed costs and break
even.Tips■Enter figures in any white field. The yellow fields
are calculated for you.■Enter as much or as little information as
you like. The more information you record, the better your
analysis.■By default, the sheets in this template are locked, so
that the formulas cannot be changed. If you are a confident
Excel user, you may wish to unlock a sheet and modify
it.■Please send any feedback or questions to
[email protected]Important informationThe figures shown in
this Financial Forecast spreadsheet are intended as a guide only.
It has been prepared without considering your objectives,
financial situation or needs. Before acting on the calculations in
this spreadsheet, you should consider its appropriateness to your

circumstances. The Commonwealth Bank accepts no
responsibility for any financial loss resulting from the use of
this spreadsheet. We recommend you seek professional advice
before acting on the information or calculations contained in it.
Set-up costsSet-up costsSetting up the businessAccountant's
fees$8,944Solicitor's fees$200Business registration$150Domain
name registration$250Insurance
premiums$1,000Licences$900Workers
compensation$3,000Setting up the premisesLease deposit and
advance rent$500Fitout$0Utility bonds and
connection$0Stationery and office supplies$350Plant and
equipmentEquipment$6,500Vehicles$3,000Telecommunications
$2,000Computers and software$3,500Starting
operationsAdvertising and promotion$850Raw materials and
supplies$3,500Working capital$4,700Start-up capitalEquity
investment$35,000Borrowings$25,000Total$60,000The
resultTotal set-up costs$39,344Surplus
funds$20,656Borrowings required0
Profit and loss forecastProfit and loss
forecastJanFebMarAprMayJunJulAugSepOctNovDecTotalsSales
Sales
(invoiced)$22,500.00$27,000.00$32,400.00$38,880.00$46,656.0
0$55,987.20$67,184.64$80,621.57$96,745.88$116,095.06$139,
314.07$167,176.88$890,561.30Cost of goods
sold$6,750.00$8,100.00$9,720.00$11,664.00$13,996.80$16,796
.16$20,155.39$24,186.47$29,023.76$34,828.52$41,794.22$50,1
53.07$267,168.39Gross
profit$15,750.00$18,900.00$22,680.00$27,216.00$32,659.20$3
9,191.04$47,029.25$56,435.10$67,722.12$81,266.54$97,519.85
$117,023.82$623,392.91ExpensesAccounting
fees$500.00$535.00$572.45$612.52$655.40$701.28$750.37$80
2.89$859.09$919.23$983.58$1,052.43$8,944.23Advertising$85
0.00$892.50$937.13$983.98$1,033.18$1,084.84$1,139.08$1,19
6.04$1,255.84$1,318.63$1,384.56$1,453.79$13,529.56Bank
charges$400.00$420.00$441.00$463.05$486.20$510.51$536.04
$562.84$590.98$620.53$651.56$684.14$6,366.85Bank

interest$200.00$208.00$216.32$224.97$233.97$243.33$253.06$
263.19$273.71$284.66$296.05$307.89$3,005.16Depreciation$3
25.00$325.00$325.00$325.00$325.00$325.00$325.00$325.00$3
25.00$325.00$325.00$325.00$3,900.00Electricity and
gas$700.00$700.00$700.00$700.00$700.00$700.00$700.00$700
.00$700.00$700.00$700.00$700.00$8,400.00Equipment
hire/lease$950.00$950.00$950.00$950.00$950.00$950.00$950.0
0$950.00$950.00$950.00$950.00$950.00$11,400.00Insurance
$1,000.00$1,000.00$1,000.00$1,000.00$1,000.00$1,000.00$1,0
00.00$1,000.00$1,000.00$1,000.00$1,000.00$1,000.00$12,000.
00Legal
fees$450.00$450.00$450.00$450.00$450.00$450.00$450.00$45
0.00$450.00$450.00$450.00$450.00$5,400.00Motor vehicle
expenses
$575.00$615.25$658.32$704.40$753.71$806.47$862.92$923.32
$987.96$1,057.11$1,131.11$1,210.29$10,285.86Postage,
telephone and
fax$350.00$385.00$423.50$465.85$512.44$563.68$620.05$682.
05$750.26$825.28$907.81$998.59$7,484.50Stationery$350.00$
376.25$404.47$434.80$467.41$502.47$540.16$580.67$624.22$
671.03$721.36$775.46$6,448.30Rent$1,100.00$1,100.00$1,100.
00$1,100.00$1,100.00$1,100.00$1,100.00$1,100.00$1,100.00$1
,100.00$1,100.00$1,100.00$13,200.00Repairs and
maintenance$750.00$802.50$858.68$918.78$983.10$1,051.91$
1,125.55$1,204.34$1,288.64$1,378.84$1,475.36$1,578.64$13,4
16.34Security$800.00$800.00$800.00$800.00$800.00$800.00$8
00.00$800.00$800.00$800.00$800.00$800.00$9,600.00Sundries
$900.00$967.50$1,040.06$1,118.07$1,201.92$1,292.07$1,388.9
7$1,493.14$1,605.13$1,725.51$1,854.93$1,994.05$16,581.36Su
perannuation$625.00$625.00$625.00$625.00$625.00$625.00$62
5.00$625.00$625.00$625.00$625.00$625.00$7,500.00Transport/
courier
costs$870.00$904.80$940.99$978.63$1,017.78$1,058.49$1,100.
83$1,144.86$1,190.66$1,238.28$1,287.81$1,339.33$13,072.45
Wages
$3,000.00$3,090.00$3,182.70$3,278.18$3,376.53$3,477.82$3,5

82.16$3,689.62$3,800.31$3,914.32$4,031.75$4,152.70$42,576.
09Workers
compensation$1,250.00$1,287.50$1,326.13$1,365.91$1,406.89$
1,449.09$1,492.57$1,537.34$1,583.46$1,630.97$1,679.90$1,73
0.29$17,740.04$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.0
0Total$15,945.00$16,434.30$16,951.74$17,499.15$18,078.52$1
8,691.96$19,341.74$20,030.30$20,760.25$21,534.41$22,355.77
$23,227.59$230,850.73ResultNet profit-
$195.00$2,465.70$5,728.26$9,716.85$14,580.68$20,499.08$27,
687.51$36,404.80$46,961.86$59,732.13$75,164.07$93,796.23$
392,542.18Gross profit
margin70%70%70%70%70%70%70%70%70%70%70%70%70%
Net profit margin-
1%9%18%25%31%37%41%45%49%51%54%56%44%
Cash flow forecastCash flow
forecastJanFebMarAprMayJunJulAugSepOctNovDecTotalsStarti
ng cash
position$25,000.00$20,505.00$26,778.70$37,043.28$52,169.11
$73,204.56$101,411.93$138,310.46$185,727.98$245,863.01$32
1,359.15$415,394.48IncomingCash
sales$11,250.00$13,500.00$16,200.00$19,440.00$23,328.00$27
,993.60$33,592.32$40,310.78$48,372.94$58,047.53$69,657.03$
83,588.44$445,280.65Collections from accounts
receivable$0.00$9,000.00$10,800.00$12,960.00$15,552.00$18,6
62.40$22,394.88$26,873.86$32,248.63$38,698.35$46,438.02$5
5,725.63$289,353.77Other cash
receipts$200.00$208.00$216.32$224.97$233.97$243.33$253.06
$263.19$273.71$284.66$296.05$307.89$3,005.16Total$11,450.
00$22,708.00$27,216.32$32,624.97$39,113.97$46,899.33$56,2
40.26$67,447.83$80,895.28$97,030.54$116,391.11$139,621.96
$737,639.58OutgoingFixed
costs$6,378.00$6,573.72$6,780.69$6,999.66$7,231.41$7,476.78
$7,736.70$8,012.12$8,304.10$8,613.76$8,942.31$9,291.04$92,
340.29Administration$4,468.00$4,625.72$4,792.37$4,968.55$5,
154.90$5,352.08$5,560.84$5,781.97$6,016.31$6,264.77$6,528.
34$6,808.07Marketing$340.00$357.00$374.85$393.59$413.27$

433.94$455.63$478.41$502.33$527.45$553.82$581.52Operation
s$1,570.00$1,591.00$1,613.47$1,637.51$1,663.24$1,690.77$1,7
20.22$1,751.73$1,785.46$1,821.54$1,860.15$1,901.46Variable
costs$9,567.00$9,860.58$10,171.04$10,499.49$10,847.11$11,2
15.17$11,605.04$12,018.18$12,456.15$12,920.64$13,413.46$1
3,936.55$138,510.44Administration$6,702.00$6,938.58$7,188.5
6$7,452.83$7,732.34$8,028.12$8,341.27$8,672.96$9,024.47$9,
397.16$9,792.51$10,212.10Marketing$510.00$535.50$562.28$5
90.39$619.91$650.90$683.45$717.62$753.50$791.18$830.74$8
72.27Operations$2,355.00$2,386.50$2,420.21$2,456.27$2,494.8
6$2,536.15$2,580.33$2,627.60$2,678.18$2,732.31$2,790.22$2,
852.18Total$15,945.00$16,434.30$16,951.74$17,499.15$18,078
.52$18,691.96$19,341.74$20,030.30$20,760.25$21,534.41$22,3
55.77$23,227.59$230,850.73ResultChange during month-
$4,495.00$6,273.70$10,264.58$15,125.82$21,035.45$28,207.37
$36,898.52$47,417.53$60,135.03$75,496.14$94,035.33$116,39
4.37Closing cash
position$20,505.00$26,778.70$37,043.28$52,169.11$73,204.56
$101,411.93$138,310.46$185,727.98$245,863.01$321,359.15$4
15,394.48$531,788.85
Balance sheet forecastBalance sheet forecast As atDecember
2018AssetsCurrent assets$625,179Cash $531,789Petty cash
$0Accounts receivable $66,871Stock $5,169Short-term
investment $21,350Prepaid expenses $0Long-term investment
$0Fixed assets$101,730Land $0Buildings $22,100Improvements
$8,430Equipment $26,300Furniture $19,250Motor/vehicles
$25,650Total assets$726,909LiabilitiesCurrent
liabilities$309,367Accounts payable $23,228Interest payable
$3,005Taxes payable$91,452Income tax $134,980Sales tax
$19,627Payroll accrual $37,075Long-term
liabilities$25,000Borrowings$25,000Total liabilities
$334,367Net assets$392,542Owner's equityDoes not balance by
$0Retained earnings$0Current year earnings$392,542Total
equity (should equal net assets)$392,542
Break-even analysisBreak-even analysisAverage selling price
per unit$62Average cost of each unit$27Gross profit

margin56%Fixed costs$230,851Dollar sales to break
even$408,936Number of unit sales to break even6,596
Marketing Budget PlanMarketing Budget
PlanCategoryEstimated
QuantityEstimated
Cost per UnitEstimated
SubtotalResearchResearch firm fees1$350.00$350.00Web
research2$700.00$1,400.00Independent
research1$200.00$200.00Other
research3$75.00$225.00Research Costs
Total$2,175.00CommunicationsPromotional
brochures5,500$0.16$880.00Web-Online
Ads9$220.00$1,980.00Web-Social
Media6$200.00$1,200.00Communications Costs
Total$4,060.00PromotionsProduct
giveaways30$62.00$1,860.00Product
discounts250$4.50$1,125.00Special
offers120$2.75$330.00Promotions Costs
Total$3,315.00AdvertisingBrochures (development and
production)2,500$0.15$375.00Mailings3,000$0.04$120.00Postc
ards2,000$0.02$40.00Billboards4$300.00$1,200.00Bus
sides3$70.00$210.00Advertising Costs Total$1,945.00Public
RelationsCharity
events2$275.00$550.00Advertising3$315.00$945.00Employee
promotions2$170.00$340.00Sponsorships2$100.00$200.00Publi
c Relations Costs Total$2,035.00ESTIMATED MARKETING
GRAND TOTAL$13,530.00
&C&A
&LConfidential & Proprietary&R&8Page &P
Sheet1
Running head: BUSINESS PLAN
1
BUSINESS PLAN

20
BUSINESS PLAN
21
Business Plan
BUS.599
Strayer University
March 3, 2018
Company Description
The name of my non-alcoholic company will be Strawberry
Rite. The reason for choosing this name is because it is unique,
appealing and it gives the company a positive image to the
public. In addition, this name brands the company for the
future. Our company will major in the production of red and
white nonalcoholic wine brands whose major target will be
individuals who do not take alcoholic beverages for various
personal reasons. Strawberry Rite will follow the philosophy
followed by regular wine producers of producing many different
flavors in order to cater for the many different tastes and
preferences of customers. These different NAB brands will be
sold in both wholesale and they will be availed in nightclubs,
restaurants as well as lounges where non-alcoholic adults go to
have good times. Strawberry Rite Wines Inc. will see to it that
customers enjoy a glass of nice, quality, refreshing non-
alcoholic wines.
Company Mission Statement
"Our mission statement is to be world's premier producer of
quality, sophisticated, and satisfying non-alcoholic wines. We
are dedicated to providing our customers with the best tasting

and healthy products while not compromising the authenticity of
their regular wine experience"
This mission's statement will serve as the roadmap, the game
plan and a definition of what the company will be doing. It will
be updated regularly to help rebrand the company's future while
also increasing its relevance in the every dynamic competitive
business environment.
Emerging trends in the NAB industry
Just like the other industries, the NAB industry is a very
competitive and dynamic one. The market for NAB has been
growing gradually over the last couple of decades. According to
a recent research by Grand View Research, the NAB market size
is expected to grow and reach $1.6 trillion by the year 2025.
The research established the increasing societal awareness of
serious health problems related to alcoholic beverages has been
a key driver of the NAB market growth (Grand View Research,
2017). These findings clearly show that the demand for soft
adult nonalcoholic beverages has been on the rise and
consumers can now get ready NAB that has had "the same
amount of thought put in them as a spirit". The society is now
aware that obesity and other nutrition-related health problems
are closely related to alcoholism and for this reason, many are
shifting to NAB in order to overcome the risk of the
aforementioned nutrition-related diseases (Santos, 2013).
Grand View Research also found out that North America
accounts for the largest NAB industry in the year 2016 (Grand
View Research, 2017. This trend owes to the presence of a well-
developed economic as well as high standards of living.
Financial Times, (2016) reports that there has been a strong
growth of non-alcoholic drinks since 2010. According to their
survey, the world market growth of non/low alcohol beer has
grown 4% while that of ready-to-drink beverages has grown by
10%. Moreover, the study reveals that in most countries,
including the US and the UK, the decrease consumption of
alcohol has been contributed largely by the aging population.
From above, it is clear the changing market dynamics in the

beverage industry are advantageous to Strawberry Rite Inc. who
seek to venture into the NAB industry. The company will
specialize in the production and selling of nonalcoholic wines
for a number of reasons: one, it seeks to take advantage of the
changing consumer wine preferences, two, it is one of the
company's key objectives to build a healthier society by
providing an effective alternative to alcoholic wines/beverages.
Thirdly, Strawberry Rite Inc. is committed to ensuring that
individuals who do not like alcoholic wins for religious, health
and personals reasons get an opportunity to enjoy wine.
Strategic Position
The company will build its business around market leadership
positioning. As pointed out previously, Strawberry Rite Inc.
primarily targets the growing population of individuals who
don't like alcoholic wines due to aforementioned reasons. Every
operation, decision, and activity of the company will be
centered on meeting the needs of this growing population
cohort.
Distribution Channels
Effective distribution channels are key to the success of any
business. In today's competitive business environment a
distribution channel strategy is an integral part of the DNA of
many companies. For this reason, Strawberry Rite Inc. will
combine the following areas in the preparation of its
distribution plan: company profile, portfolio structure and price
positioning, go-to-market policy, trade and retail marketing, and
e-commerce.
Being a new entrant into the beverage industry, the company
will be aggressive and it will deploy several distribution
channels in order ensure its products reach as many customers
as possible. The first major distribution channel that will be
employed in online marketing. Strawberry Rite will develop a
professional website through which it will market its various
wine brands. This will be combined with social media
advertisements d promotions. Online marketing not only offers
the company with a brandable and scalable platform but it is

also cost-effective. For a start-up like Strawberry Rite, this is a
key competitive advantage.
Next, the company will employ cross-joint ventures with some
of the well-established companies who are not direct rivals. In
order to ensure distribution and marketing effectiveness,
reputable, vastly-experienced and well-established companies
will be preferred.
The other distribution channel option is a referral and affiliate
programs as well as commercial trade shows. The company will
combine these different channels in order to ensure its new
nonalcoholic wines reach as many customers as possible in
order to earn itself a substantial market share in the industry.
Pertinent Risks
Being a new entrant into the market, Strawberry Rite faces a
number of potential risks that must be handled with a lot of
care. The first major risk is the serious inconsistency in the
beverage market. The market has been growing, as discussed in
this paper, but the new demand has not yet materialized into
dependable and consistent sales. This is an inherent risk that the
company must take. Rising competition is another serious risk.
Every day, new companies are entering the nonalcoholic
beverage industry in order to tap the new opportunities provided
by the changing societal changes towards non-alcoholic
beverages. The third notable risk is the high cost of starting up
and entry into the competitive market (Blank, 2012).
Strawberry Rite must take the above-mentioned risks. However,
there are a number of strategies that it must employ in order to
overcome these risks. Firstly, it needs to invest in extensive
market and market research in order to tailor every activity,
decision, and product towards meeting customer needs, tastes,
and preferences. Market research will help the company to
avoid costly mistakes and errors that can lead to failure.
Secondly, Strawberry Rite will engage in pragmatic marketing
initiatives including social media marketing and direct selling
in order to build the much-needed customer relationships.
Thirdly, it will engage in a number of CSR activities such as

supporting self-help groups, charity work, and health promotion
programs. These activities will help to build a positive image
which is important to its long-term growth.
SWOT Analysis
Strengths
· Fantastic Marketing Strategies
· CSR
· Quality brands
Weaknesses
· Limited capital
· High cost structure
Opportunities
· Societal shift to NAB
· New technologies
· International market
Threats
· Intensifying competition
· Legal changes
Analysis
Strengths
· Quality brands-Strawberry Rite has a wide variety of
nonalcoholic wine brands. This is strengths that differentiate it
from other competitions in the market.
CSR-Strawberry Rite will build a very positive public image by
engaging in CSR initiatives such as philanthropy.
· Fantastic marketing strategies- the company will employ e-
commerce, cross-joint ventures, and direct selling in order to
reach as many customers as possible.
Weaknesses
· High-cost structure-Strawberry Rite is a start-up and this
means it will incur high costs to enter the market.
· Limited capital-Strawberry Rite is a new entrant and therefore,
it lacks a reliable revenue stream to enable it to raise enough
capital for all its needs.

Opportunities
· A societal shift to NAB-the society is increasingly shifting to
NAB due to the many health risks posed by an alcoholic
beverage.
· Technology-Many advantageous technologies are being made
which can help the company improve the efficiency of its
operations, cut down costs, and also improve quality.
· International markets-Nonalcoholic wines are also demanded
in international markets and this is a new opportunity for
Strawberry Rite.
Threats
· Intensifying competition-other than the existing competition,
there is the threat of new entrants in the near future.
· Legal changes- there is the threat of change of laws and
regulations governing the beverage industry, which can
potentially harm the success of the company.
Target Company Analysis
Strawberry Rite is a non-alcoholic wine producing Start-up
Company that aims to venture into the non-alcoholic beverage
industry. The company will produce red and white nonalcoholic
wine brands that target individuals who do not take alcoholic
wine brands due to their religious, health and personal reasons.
Strawberry Rite will produce different brands with different
flavors in order to cater for the diverse consumer needs. In a
nutshell, the company aims to offer quality and sophisticated
non-alcoholic wine brands that give the same wine experience
as the alcoholic counterparts. This paper has developed the
marketing plan and a marketing budget which will be used to
differentiate the company through marketing and brand
awareness. These are critical factors that will enhance its entry
and success in the increasingly competitive nonalcoholic
industry.
Strawberry Rite's wine brands will be sold in nightclubs,
restaurants, and lounges where individuals who do not take
alcoholic beverages meet to have good times and nice beverages

other than soda and juices. The company will be located in VA
Chantilly, an area with a total population of 23,029 as reported
by US Census Bureau, (2010). Noteworthy, this an area that
closely borders Washington DC, one of U.S's largest
metropolitan areas. It is an area occupied by people who lead
normal lives. These are people who have hectic, busy, and often
tiresome lives as they travel to and from Washington for work.
In the evenings and mostly during weekends, they meet in
restaurant, hotels, nightclubs and other entertainment places to
relax and have a good time in lively and decorated shades.
VA Chantilly is a prominent place in the U.S especially due to
its well-known recreational places such as Fairs Lakes Virginia.
The area has over 23,014 households with a total population
density of 1916.6 people per square mile. According to U.S
Census Bureau, (2010), the income of people in VA Chantilly is
around $121,141 with a per capita income of $44,267. Another
interesting fact is that this is multicultural area diversely
occupied by people from different ethnic and racial
backgrounds, typically African Americans, Hispanics, Asians,
and Native Americans.
Competition Analysis
As a start-up and a new entrant into the beverage industry,
competition will be a major challenge facing Strawberry Rite
Co. There are bigger and well-established nonalcoholic
beverage producers that will mount direct competition to the
company. One of them includes Mustang Sally brewing, which
owns repeated custom wines. However, the company is not big
enough since it owns only one retail-store shop in the area.
The other company is Ocelot Brewing Company which is the
largest and leading nonalcoholic wine producer and supplier in
VA Chantilly. The company has more than 20 stores across the
city (Grand View Research, 2017). Despite this major strength,
Ocelot has been facing financial crises in the recent past
majorly due to debt management.
Out of all the different competitors, Mustang Sally will likely
be the strongest competitor. Other than this, there are numerous

other bistros and bars which will also make it difficult for
Strawberry Rite Co. to garner its desired market share.
However, the high population coupled with the constant flow of
tourists in Chantilly will be a big booster to Strawberry Rite's
growth.
Market share Distribution (Grand View Research, 2017).
Competitor
% of Total Revenue
% of Total Sales
Trend of Market Share(Increasing or Decreasing)
Mustang Sally Brewing
41
39
Constant
Ocelot Brewing Company
38
37
Increasing
Others (Bistros and bars)
21
24
Increasing
Demographic Description
Consumer
· Age Range- 15 years and older
Majority of the population in this targeted market is between 15
years and older. These are people are likely to consume the
company’s products. The company can also subgroup them into
smaller groups and come up with products that meet the needs
of each respective group.
· Income Range- $15,000 - $199,999
The income range of the individuals targeted by the company
earn between $15,000 and $199,999. Customer’s purchasing
power is a very important factor to consider when developing
new products. This information will be very important to the

company because it will determine the pricing of their products.
· Gender-Both male and female
The company’s brands will marketed to both genders. Win is a
product consumed by individuals from both genders. However,
strawberry Rite Inc. can also segment the two genders and
produce wine brands that suite their respective needs.
· Occupation-all types of occupation
Wine is consumed by people from across al occupations.
· Marital Status-Single and Married
Nonalcoholic wines will be sold to both married and unmarried
people indiscriminately.
· Ethic Group
Strawberry brands will be sold people from all ethnic and racial
backgrounds indiscriminately. This will enable the company to
attract and broaden its customer base.
· Level of Education-Al education levels indiscriminately.
The different wine brand are accepted to appeal to people from
across all education levels. In other words, education level is
not expected to be a significant factor in the marketing of
Strawberry Rite’s products.
· Home Ownership- sole ownership, joint tenancy, Joint
Tenancy tith Rights of Survivorship (JTWROS), tenancy in
common, and community property.
The Five Fs
Strawberry Rite needs to carefully tailor its message to meet the
expectations of its potential customers and its business model.
This will be done by following the Five Fs framework as
discussed below:
i. Function- Strawberry Rite guarantees quality, tasty,
nonalcoholic wine enjoyable at all times on all occasions.
ii. Finances-Strawberry Rite nonalcoholic wines are affordable
price thus encouraging purchase. Strawberry Rite employs a
premium pricing strategy which helps in profit generation.
iii. Freedom- to enjoy quality and sophisticated non-alcoholic
wine every day and everywhere, wine that does not lose the
authenticity of their regular wine experience

iv. Feelings-classy nonalcoholic wine that brings together
friends for happier moments.
v. Future-Strawberry Rite nonalcoholic wines guarantee a
healthy and therapeutic wine experience for a longer, happier
and healthier life.
The most important message to customers is assurance of
quality and affordability of the new wine brands. Strawberry
Rite must inform customers that it is a premium brand company
that is dedicated to satisfying its customers with quality and
sophisticated nonalcoholic wine brands.
Marketing Vehicle
After clarifying its message to customers, the next step is
describing how that information will be disseminated using
various specific tools. One of the most effective marketing
tools today is social media. The company will employ social
media platforms including Twitter, Facebook, and Instangram to
market its products. For example, it will use hashtags such as
#NABFun, #NABHealth to inform its potential customers about
its unique wine brands. High-quality advertisements will be
created that will involve photos, videos, audios.
Noteworthy, Strawberry Rite will also use these social media
platforms to interact and build relationships with its customers.
In addition, they will be used to obtain feedback about the
products, promotions, and any other relevant information that
can help gain customer loyalty. Online ads will be a crucial
marketing tool that will be used to make announcements, launch
new brands, etc.
Next Strawberry Rite will create special message videos that
will serve as marketing tools on its website. Through this
website, the company will introduce new products and also
encourage customers to make preorders (Abrams, 2010). On the
first page of the search, video links will be displayed in order to
direct any interested customer to the company wine brands.
The benefits of using this tool is that it is cost effective and it is
effective for marketing purposes. Search engine optimization
will be used to drive both quality and quantity of traffic into the

company websites. In order to improve results, SEO will use
employ unpaid searches and also give its website more exposure
using Search Engine Marketing (SEM).
Another important tool that will be used in is mobile billboards
with graphics and build-out additions. Wine branded-trucks
will be used promote the company products around the local
region. While these two methods might be costly, they are very
effective marking tools especially for a start-up like Strawberry
Rite.
Lastly, Strawbery Rite will use direct selling in order to
effectively reach its customers. The company will offer coupons
to both non-rime and prime consumers in order to boots pre-
orders form consumers who might need to use coupons. In
recreational areas, the company's marketing personnel will
strategically place tables and kiosks in order to reach potential
customers such as tourists and college students. These
marketing tools have been used by prominent companies such as
Coca-Cola and AB Wine Inc. and they were very effective
(Kotler, 2009). As such, Strawberry Rite will utilize them in
order to enter and gain a market share in the market.
Competition against Market Leaders
The market leaders in the nonalcoholic beverage industry is
Coca-Cola. In order to fight-off competition from the market
leaders, Strawberry Rite Inc. will employ two major strategies.
The First one is differentiation whereby the company will offer
high quality, good-tasting non-alcoholic wines. This is expected
to give the company a unique edge in the market as it major in
providing a niche product-nonalcoholic wines.
The second strategy is position. The company will follow a
number of paths to position itself strategically in the
competitive beverage industry. For instance, it will seek to
dominate its target category-nonalcoholic wine.
Ethics & Social Responsibility Plan
Describe the ways in which your company is committed to being
a good corporate citizen.
With the increasing competition in markets today, companies

are devising new methods to gain an edge in the market.
Corporate responsibility is increasingly becoming one effective
way through which a company can improve its image in the eyes
of stakeholders and the communities where it operates
(Paetzold, 2010). Strawberry Rite Inc. understands its long-
term societal and environmental impacts and for this reason, it
plans to incorporate them into its strategic plans as well as risk
management activities. Notably, Strawberry Rite Inc. will
carry out various corporate social responsibility initiatives
which will not be a gimmick meant to attract customers. On the
contrary, the various CSR initiatives will be genuinely and
authentically meant to improve the lives of the people within
the company and the community surrounding the company, and
also to ensure environmental safety.
Firstly, Strawberry Rite Inc. will seek to create job
opportunities in the surrounding community. The U.S and the
world at large, is facing a daunting challenge of unemployment,
especially among the youth. According to Bureau of Labor
Statistics, (2017), the rate of unemployment in the country
stands at 4.1%. This company will play a role in tackling
unemployment conundrum through various ways. Firstly, it will
partner with local academic institutions for its own talent needs.
By employing people from around who possess the required
skills and qualifications, the company will help to address the
challenge of unemployment in Washington DC. Secondly,
Strawberry Rite Inc. will partner with government and non-
profit organizations to train and educate the locals on how they
can start and run successful small businesses as part of the
solutions to the unemployment problem.
The second component of Strawberry Rite's CSR is the honest
and fair treatment of its employees. One of the fundamental
parts of Strawberry Rite Inc. organizational culture is employee
empowerment. As Millenials take a more dominant role in the
current workforce in the U.S, this company must take initiatives
to share their beliefs and values with its employees
(Bhattacharya et al, 2013). It will embrace a strong CSR

message that encourages its involvement of employees in
decision making. Employee buy-in will be encouraged in order
cultivate a sense of ownership among the employees. Next,
Strawberry Rite Inc. will embrace diversity by employing
persons from across all cultural, educational, racial, ethnic, and
religious backgrounds. It will also create policies and
procedures that support workplace diversity such as anti-
discrimination policies.
In addition, the company will build a culture whereby leaders
and managers listen carefully to employees, forgives mistakes,
praises efforts and improvements, and more importantly,
provides career growth opportunities. It is part of the company's
long-term plans to develop career development programs for its
employees such as tuition reimbursement for those who wish to
advance their education as well as in-house professional
training and certification. Lastly, it will encourage and support
employees to achieve work/life balance.
Discuss how your company's activities will affect the
environment and identify the steps you will take to mitigate any
negative impacts.
Environmental protection will also be a constitutive part of the
company's CSR plan. The company understands that some of its
activities, especially in its production faculties have an adverse
effect on the environment. As such, it will make a concerted
effort to make its activities as environmental-friendly as
possible. The first essential strategy in doing this is ensuring
full compliance with the local, state and federal environmental
protection laws, regulations, and standards.
Secondly, Strawberry Rite Inc. will reduce its waste as much as
possible through recycling of its bottles and used water. It will
emulate Coca-Cola's water stewardship approach by improving
its overall water-use efficiency, manages its wastewater and
proper discharge of stormwater at its plants (Haynes et al,
2012). Next, the company will use of biodegradable materials,
auditing its facilities, going paperless and measuring the amount
of waste it produces each day.

Thirdly, Strawberry Rite Inc. will encourage its supply chain
stakeholders to embrace environmentally and socially
responsible activities in order to increase their environmental
performance. For instance, the company will closely monitor
and evaluate its suppliers' and distributor's social and
environmental practices. As the company grows, it will start to
contribute towards environmental protection initiatives both
locally and country-wide.
Determine any health issues/claims related to the product you
are making, whether negative or positive. Suggest the strategy
your company will use to mitigate any negative issues and to
ensure any positive claims are true.
Unlike alcoholic wine brands produced by other companies
which have adverse health effects on consumers, Strawberry
Rite's nonalcoholic wines will do the contrary- help prevent the
negative health effects of alcoholic beverages. For instance,
Strawberry Rite's wine brands will be suitable for breastfeeding
mothers, diabetic individuals, and those with other health
problems that don't allow them to take alcoholic beverages.
Another benefit of Strawberry Rite's wines is that they are low
in calories.
Many beverage products have negative health impacts on certain
segments of a population (e.g., children, pregnant mothers,
etc.). Suggest your company's plan, through advertising,
distribution, and/or other methods, to target and reach only
appropriate market segments.
Just like the other beverage companies, Strawberry Rite is
required by law to provide its consumers with information
regarding any negative impacts of its products. Fortunately,
products, as pointed earlier, are healthy and beneficial to
individuals with health problems such as heart disease, and
diabetes. It is safe for everyone including pregnant mothers.
However, in its advertisements, Strawberry Rite will ask parents
who might be uncomfortable with their children taking its
products to intervene.

References
Abrams, R. (2010). Successful Business Plan: Secrets &
Strategies Paperback. Planning Shop.(ISBN: 978-1933895147).
Bhattacharya, C. B., Sen, S., & Korschun, D. (2013). Using
corporate social responsibility to win the war for talent.
Blank, S. (2012). The Startup Owner's Manual: The Step-by-
Step Guide to Building a Great Company. Cork: BookBaby.
Financial Times, (2016). "Financial TimesThirst for adult soft
drinks grows". Retrieved January 22, 2018, from
https://www.ft.com/content/a639e708-c767-11e6-8f29-
9445cac8966f
Grand View Research, (2017). "Nonalcoholic Beverage Market
Size Worth $1.60 Trillion By 2025". Retrieved January 22,
2018, from https://www.grandviewresearch.com/press-
release/global-nonalcoholic-beverage-market
Grand View Research, (2017). Industrial Alcohol Market Worth
$223. 63 Billion by 2025:CAGR: 8.8 % Retrieved from
https://www.grandviewresearch.com/press-release/global-
industrial-alcohol-market
Grand View Research, (2017). Nonalcoholic Beverage Market
Analysis By Product (CSD), Fruit Beverage, Bottled Water,
Functional Beverage, Sports Drinks, By Distribution Channel
And Segment Forecasts, 2014-2025. Retrieved February 2018
from https://www.grandviewresearch.com/industry-
analysis/nonalcoholic-beverage-market
Haynes, K., Murray, A., & Dillard, J. (Eds.). (2012). Corporate
social responsibility: A research handbook. Routledge.
Kotler, P. (2009). Marketing management. Upper Saddle River,
N.J.: Prentice Hall. Kotler, P., & Armstrong, G. (1991).
Principles of marketing. Englewood Cliffs, N.J.: Prentice Hall
Paetzold, K. (2010). Corporate Social Responsibility as an
International Marketing Approach. diplom. de.
Santos, C. R. (2013). Consumption culture in Europe: Insight
into the beverage industry. Hershey, PA: Business Science
Reference.

United States Census Bureau, (2016). County Business Patterns
(CPB). Retrieved February 13 from
https://www.census.gov/programs-surveys/cbp.html
United States of Labor, (2017). Bureau of Labor Statistics.
Retrieved from https://data.bls.gov/timeseries/LNS14000000
US Census Bureau, (2010). VA Chantilly facts. Retrieved from:
https://www.census.gov/2010census/ on August 6, 2017
Running head: OPERATION, TECHNOLOGY, AND
MANAGEMENT PLAN 1
OPERATION, TECHNOLOGY, AND MANAGEMENT PLAN
8
Assignment 3: Operation, Technology, and Management Plan
BUS.599

Strayer University
February 28, 2018
Create an operations plan for your NAB company using the
template in the text as a guide (p. 214 | Operations Plan
Preparation Form - Click here for help accessing a specific page
number in your eBook). Extract appropriate information from
the NAB Company portfolio, where applicable. Other required
items in the template should be filled in using your personal
preferences.
Cost
Facilities
Land Purchase
-
Building Purchase
-
Initial Rent
-
Deposits (Security .utilities/ etc)
Improvements/Remodeling
$1,200
Other

Equipment
Furniture
$ 1000
Production/Merchandise/Equipment
$ 690,042
Computer/Software
$3000
Cash Registers
$600
Telephone/Telecommunication
-
Vehicles
-
Other: Miscellaneous
$4,000
Materials/Suppliers
Office Suppliers
$2,100
Stationery/business cards
$3,200
Brochures/ pamphlets/Others
$800
Other
Fes and other Costs
Licenses Permits
$186

Trade or Professional Membership
$ 1,000
Attorneys
$ 6,000
Accountants
$ 2,000
Insurance
$ 13,532
Marketing/Management
$ 10,000
Other
Total
$738660
Strawberry Rite Inc. will operate from its headquarters located
in VA Chantilly, Washington DC. However, for convenience,
the company will have several small home offices which will
serve the startup teams more efficiently. Strawberry Rite Inc.
has a large part of its house (garages and basement) which will
be used for various inventory proposes such as storing its
supplies and products. Worthy of mention, this resource will
only be useful in the short run but as the company grows,
obviously it will need a larger facility. After packaging, the
ready to drink non-alcoholic drinks will be kept in the basement
of the facility, of course at appropriate temperatures.
Cost and Time Efficiency
Wine is a delicate substance. In order to prevent spoilage or
contamination, it must be kept at the appropriate temperatures,

light, and movement. Strawberry Rite Inc. will thus purchase
the best refrigeration facilities and equipment so that it can
guarantee its customers fresh, delicious an enjoyable wine.
Once the wine is produced and packaged, it will be kept at the
appropriate temperatures for several days or even weeks
awaiting distribution. In the beginning stages, most of the
activities will be carried out using manual labor-involving the
company employees brewing the wine and then packaging it
into individual bottles for retail sale within in VA Chantilly,
Washington DC.
Competitive Advantage
Notable, the nonalcoholic wine that Strawberry Rite Inc. aims to
produce is a niche product. Its non-alcoholic nature makes it
appealing to individuals who wish to have a good wine
experience but they do not take the alcoholic brands due to
religious, health, cultural or even personal reasons. This is a
unique feature that will give Strawberry Rite a unique edge in
the market.
The second source of competitive advantage is the local
brewing and packaging. The company's nonalcoholic wines will
be brewed and packaged locally with environmentally
sustainable packaging (Barrington, 2011). This will on way of
supporting the company's environmentally friendly mission.
The third important competitive advantage is that the building
and the land where it is situated are owned by the company
having been inherited from the parents of the sole proprietor-the
company owner. This is a huge competitive advantage because
the company will not incur rental costs (Ready, 2011).
Provide a rationale for the competitive advantages section using
appropriate functional-level and business-level strategies to
explain the competitive advantages.
Strawberry Rite owns the land and offices and storage spaces
from the time of startup. This is a facility that has been
inherited and it will keep the operating costs significantly
down. This provides Strawberry Rite Inc. with additional
finances to spend on production and distribution.

All the wine brands produced will be distributed in the local zip
code using the two trucks that were also inherited. However,
since these may not be adequate, the distribution will be
outsourced from other local companies if need be. The
outsourced distribution services will be contracted to local
companies.
One of the daunting tasks facing the company is scaling. Given
the fact that Strawberry Rite's non-alcoholic wine will start as
fully fermented alcoholic wines, it must obtain grapes from
strategic suppliers. Grapes will be sourced from Chile, Spain,
and Argentina which are among the world's best grapes
producing countries. Grapes will be crushed, pressed,
fermented, and clarified. Notably, since the company will be
producing different brands of non-alcoholic brands, it will need
various types of grapes. These include moon drops, Concord,
Pinot Noir, Lemberger, and sweet Jubilee. When the company
starts scaling its production and processes, it must invest in
bigger and better machines, particularly its thermal de-
alcoholization unit that is technology intensive. This expansion
will enable large-scale production of wine to meet the
anticipated huge demand.
Initially, packaging and labeling at Strawberry Rite will do
manually by employees until it scales into Phase II but as it
grows, it will invest in bottling machines. This will be financed
by a personal loan that will be obtained from the owner's family
and it will be repaid within 1-5 years. The company observes
the highest standards of quality in every process including
cleaning, packaging, etc.
Describe your research and development activities and explain
how they will contribute to the company.
Research and development are at Strawberry Rite's priority list
because the company aims to stay abreast of the dynamics and
trends that call for every ambitious organization to stay up with
the local and global competition. The company will keep close
tabs on changing consumer needs and technologies so that it can
produce premium quality nonalcoholic wines tailored to meet

consumer tastes and preferences. Moreover, it will keep close
tabs on news and climate/weather updates regarding South
America when its grapes are sourced from.
Additionally, Strawberry Rite will ensure its stays abreast with
the changes in local, state, federal, and internal political, legal,
and social environment. For instance, its representatives will
attend seminars, conferences, and also subscribe to key news
magazines in order to not only gain an understanding of market
dynamics but also to ensure everything it does is in full
compliance with all regulations and laws.
Create a technology plan for your NAB company using the
template in the text as a guide (p. 227 | Technology Plan
Preparation Form ). Extract appropriate information from the
NAB Company portfolio, where applicable. Other required
preferences.
Year 1
Year 2
Year 3
Year 4
Year 5
Software
Accounting
$290.00
$290.00
$350.00
$400.00
$400.00
Customer Relationships Mgnt
$360.00

$360.00
$ 400.00
$400.00
$400.00
Human Resource Management
$450.00
$450.00
$550.00
$650.00
$650.00
Inventory Management
$999.00
$999.00
$1199.00
$1199.00
$1299.00
Office Suite
$200,00
$200.00
$200.00
$300.00
$300.00
Other
Other
Hardware

Desktop and Laptop computers
-
-
$6000.00
$8000.00
$110,000 .00
Tablets and mobile devices
$600.00
$600.00
$700.00
$1,000.00
$12400.00
Servers
$400.00
$800.00
$2,700.00
$2,700.00
$3,000.00
Backup systems
$50.00
$85.00
$250.00
$250.00
$250.00
Printers
-
-
-
$2500.00
-
Networking
-

$1000.00
$1000.00
$1100.00
$1000.00
Peripherals
$100.00
$100.00
$100.00
$110.00
$110.00
Other
Telecommunication
Telephone system
-
-
-
$800.00
-
Mobile phones
-
-
$400.00
-
-
Fax Machines
-

-
-
-
-
Internet Access
$360.00
$360.00
$400.00
$400.00
$450.00
Other
Other
Consulting Personnel
-
$180,000
$200,000
$200,000
$200,000
Systems design/maintenance
-
$100,000
$100,000
$110,000
$200,000
Tech/support /help desk

-
$100,000
$200,000
$200,000
$200,000
Other
Total
$3809
$385244
$314049
$529809
$840149
Software Needs
Technology is increasingly becoming part and parcel of almost
every operation in companies today. Worth a mention, without
technology, a company finds itself at a competitive
disadvantage in the increasingly competitive market
environment. Strawberry Rite will begin by using Microsoft
Office Suite to carry out its daily business activities such as
data entry, accounting, creating letters and memos, storage, data
sharing, etc.
Given the rising threat of information security, the company
will employ cloud computing to manage, store, and process
data. Proprietary information such as product source code,

secret formulas, processes, trade secrets, trademarks, and
methods of production will be backed up in the cloud.
The company will also need to keep track of its customers,
generate sales and reports. To do this, it will purchase Bitrix 24
and CRM systems. The company will and must embrace online
marketing but given its limited budgets, it will have to firstly
pursue social media marketing. It will use social platforms such
as Facebook, Twitter, Snapchat and Whatsapp to reach new
customers and to interact with its existing customers. Socal
media marketing is both effective but less costly (Zarrella,
2009). It will create a website where any interested individual
can view wine brand verities and even place orders. However,
as the company grows, it will invest in more advanced software
such as Sailthru, MailChimp, Yesware and also to hire
marketing consulting services.
Hardware Needs
The important hardware equipment includes computers, printers,
external hard drives, network server solutions, wireless routers,
and phones. Just like the land and facility, the computers to be
used have been inherited. The company has an e-fax so it will
not need a physical machine.
Telecommunication Needs
Strawberry Rite Inc. will have office phones in its offices.
However, employees will use their cell phones. The rest of
telecommunication needs will be carried out using email and
fax.
Personnel Needs
As part of its corporate social responsibility, Strawberry Rite
will provide internship and job opportunity for the surrounding
local community. Its staff is small and therefore, many interns
will be accommodated to support growth and expansion.
Consultations services will also be acquired for technical issues
such as marketing, legal, and technology. Noteworthy, these
services will only be sought if need be especially in the second
phase of the company’s growth.
5. Provide a rationale for the personnel needs section by

incorporating appropriate functional-level strategies.
Starting out, Strawberry Rite's staff will be relatively small but
gradually, it will expand the size of its staff to take up the new
duties and responsibilities. With time, the company will need
to operationalize its team and play to their strengths. Labor
will be divided in order to increase efficiency and quality
(Blumberg, 2013). The company's management has strong
operations, marketing, and sales background. The company will
hire per diem while positions such as labelling, cleaning, and
packaging will be taken by interns.
6. Create a management plan for your NAB company using the
template in the text as a guide (p. 248 | Management Plan
preferences.
The management team will comprise of three individuals. The
company owner will be president. Under him, there will be
operations and finance manager. He will also be in charge of all
legal services, research and development. Being a former
operational manager assistant of New Horizons Inc. he has a
strong background in operations, sales, and marketing
management. Other than this, he has also been manager of his
family real estate property. As such, he brings in vast
experience which will be a key benefit to the company.
However, he remained unpaid until the phase of the company
growth, which is a milestone of $1 million per year. In this
phase, he will be entitled to a monthly salary of $75,000 per
annum.
The second person will be the sales manager who will be
responsible for management of the company's sales right from
the beginning. She is also a vastly experienced professional
having worked in a similar position at a reputed insurance
company in the U.S. She will be entitled to an annual salary
totaling $50,000 with bonus options.
The third last management personnel will be production

manager. Just like his colleagues, he has a strong academic and
professional background having worked for an international
clock manufacturer. He brings in a deep production management
knowledge and experience. H will take an annual salary totality
$40,000 starting out.
The three individuals will be the key decision makers for the
company. Each of them will have a team of other professionals
working under them in the various departments such as
customer service, HR, IT, etc.
Using the flow charts on p. 242 as a guide, outline your
company’s management hierarchy. Note: Charts or diagrams
must be imported / included in the MS Word document.
Operations and Finance Manager
1 customer service reps assistants – taking HR and payroll and
order tracking as well
Sales Manager
3 field sales agents
1 marketing design/social media specialist.
Production Manager
8 warehouse crewmembers
2 delivery drivers
Provide a rationale for the management structure and style
section by incorporating appropriate functional-level strategies.
Strawberry Rite has a transparent management style that is
characterized by a laidback office environment. The company
does not have a specified dress code. However, the warehouse
and production department workers must be in the appropriate
dressing as prescribed by law. Its sales agents will also dress
professionally because they are the face of the company in the
outside world. As the company grows, it will new changes will
be made and its HR department will be expanded. In the first
phase of growth, the company will outsource some functions but
it is expected as from phase two, the company will be stable and
self-reliant.

References
Barrington, G. V. (2011). Consulting Start-up and Management:
A Guide for Evaluators and Applied Researchers. Sage.
Blumberg, M. (2013). Startup CEO: A Field Guide to Scaling
Up Your Business,+ Website. John Wiley & Sons.
Ready, K. (2011). Startup: An insider's guide to launching and
running a business. Apress.
Zarrella, D. (2009). The social media marketing book. "
O'Reilly Media, Inc.".
President
Marketting/Sales Manager
Production Manager
Operations and finance manager
Personel Training

Marketting ,Advertsing , Packaging Developement
Production, Research & Development
1
Running head: OPERATION, TECHNOLOGY, AND
MANAGEMENT PLAN 1

8
Assignment 3: Operation, Technology, and Management Plan
BUS.599
Strayer University
February 28, 2018
Create an operations plan for your NAB company using the
template in the text as a guide (p. 214 | Operations Plan
Preparation Form - Click here for help accessing a specific page
number in your eBook). Extract appropriate information from
the NAB Company portfolio, where applicable. Other required
preferences.
Cost
Facilities
Land Purchase
-
Building Purchase
-
Initial Rent
-

Deposits (Security .utilities/ etc)
Improvements/Remodeling
$1,200
Other
Equipment
Furniture
$ 1000
Production/Merchandise/Equipment
$ 690,042
Computer/Software
$3000
Cash Registers
$600
Telephone/Telecommunication
-
Vehicles
-
Other: Miscellaneous
$4,000
Materials/Suppliers
Office Suppliers
$2,100
Stationery/business cards
$3,200

Brochures/ pamphlets/Others
$800
Other
Fes and other Costs
Licenses Permits
$186
Trade or Professional Membership
$ 1,000
Attorneys
$ 6,000
Accountants
$ 2,000
Insurance
$ 13,532
Marketing/Management
$ 10,000
Other
Total
$738660
Strawberry Rite Inc. will operate from its headquarters located
in VA Chantilly, Washington DC. However, for convenience,
the company will have several small home offices which will
serve the startup teams more efficiently. Strawberry Rite Inc.
has a large part of its house (garages and basement) which will
be used for various inventory proposes such as storing its

supplies and products. Worthy of mention, this resource will
only be useful in the short run but as the company grows,
obviously it will need a larger facility. After packaging, the
ready to drink non-alcoholic drinks will be kept in the basement
of the facility, of course at appropriate temperatures.
Cost and Time Efficiency
Wine is a delicate substance. In order to prevent spoilage or
contamination, it must be kept at the appropriate temperatures,
light, and movement. Strawberry Rite Inc. will thus purchase
the best refrigeration facilities and equipment so that it can
guarantee its customers fresh, delicious an enjoyable wine.
Once the wine is produced and packaged, it will be kept at the
appropriate temperatures for several days or even weeks
awaiting distribution. In the beginning stages, most of the
activities will be carried out using manual labor-involving the
company employees brewing the wine and then packaging it
into individual bottles for retail sale within in VA Chantilly,
Washington DC.
Competitive Advantage
Notable, the nonalcoholic wine that Strawberry Rite Inc. aims to
produce is a niche product. Its non-alcoholic nature makes it
appealing to individuals who wish to have a good wine
experience but they do not take the alcoholic brands due to
religious, health, cultural or even personal reasons. This is a
unique feature that will give Strawberry Rite a unique edge in
the market.
The second source of competitive advantage is the local
brewing and packaging. The company's nonalcoholic wines will
be brewed and packaged locally with environmentally
sustainable packaging (Barrington, 2011). This will on way of
supporting the company's environmentally friendly mission.
The third important competitive advantage is that the building
and the land where it is situated are owned by the company
having been inherited from the parents of the sole proprietor-the
company owner. This is a huge competitive advantage because
the company will not incur rental costs (Ready, 2011).

Provide a rationale for the competitive advantages section using
appropriate functional-level and business-level strategies to
explain the competitive advantages.
Strawberry Rite owns the land and offices and storage spaces
from the time of startup. This is a facility that has been
inherited and it will keep the operating costs significantly
down. This provides Strawberry Rite Inc. with additional
finances to spend on production and distribution.
All the wine brands produced will be distributed in the local zip
code using the two trucks that were also inherited. However,
since these may not be adequate, the distribution will be
outsourced from other local companies if need be. The
outsourced distribution services will be contracted to local
companies.
One of the daunting tasks facing the company is scaling. Given
the fact that Strawberry Rite's non-alcoholic wine will start as
fully fermented alcoholic wines, it must obtain grapes from
strategic suppliers. Grapes will be sourced from Chile, Spain,
and Argentina which are among the world's best grapes
producing countries. Grapes will be crushed, pressed,
fermented, and clarified. Notably, since the company will be
producing different brands of non-alcoholic brands, it will need
various types of grapes. These include moon drops, Concord,
Pinot Noir, Lemberger, and sweet Jubilee. When the company
starts scaling its production and processes, it must invest in
bigger and better machines, particularly its thermal de-
alcoholization unit that is technology intensive. This expansion
will enable large-scale production of wine to meet the
anticipated huge demand.
Initially, packaging and labeling at Strawberry Rite will do
manually by employees until it scales into Phase II but as it
grows, it will invest in bottling machines. This will be financed
by a personal loan that will be obtained from the owner's family
and it will be repaid within 1-5 years. The company observes
the highest standards of quality in every process including
cleaning, packaging, etc.

Describe your research and development activities and explain
how they will contribute to the company.
Research and development are at Strawberry Rite's priority list
because the company aims to stay abreast of the dynamics and
trends that call for every ambitious organization to stay up with
the local and global competition. The company will keep close
tabs on changing consumer needs and technologies so that it can
produce premium quality nonalcoholic wines tailored to meet
consumer tastes and preferences. Moreover, it will keep close
tabs on news and climate/weather updates regarding South
America when its grapes are sourced from.
Additionally, Strawberry Rite will ensure its stays abreast with
the changes in local, state, federal, and internal political, legal,
and social environment. For instance, its representatives will
attend seminars, conferences, and also subscribe to key news
magazines in order to not only gain an understanding of market
dynamics but also to ensure everything it does is in full
compliance with all regulations and laws.
Create a technology plan for your NAB company using the
template in the text as a guide (p. 227 | Technology Plan
preferences.
Year 1
Year 2
Year 3
Year 4
Year 5
Software

Accounting
$290.00
$290.00
$350.00
$400.00
$400.00
Customer Relationships Mgnt
$360.00
$360.00
$ 400.00
$400.00
$400.00
Human Resource Management
$450.00
$450.00
$550.00
$650.00
$650.00
Inventory Management
$999.00
$999.00
$1199.00
$1199.00
$1299.00
Office Suite
$200,00
$200.00
$200.00
$300.00
$300.00
Other

Other
Hardware
Desktop and Laptop computers
-
-
$6000.00
$8000.00
$110,000 .00
Tablets and mobile devices
$600.00
$600.00
$700.00
$1,000.00
$12400.00
Servers
$400.00
$800.00
$2,700.00
$2,700.00
$3,000.00
Backup systems
$50.00
$85.00
$250.00
$250.00
$250.00

Printers
-
-
-
$2500.00
-
Networking
-
$1000.00
$1000.00
$1100.00
$1000.00
Peripherals
$100.00
$100.00
$100.00
$110.00
$110.00
Other
Telecommunication
Telephone system
-
-
-
$800.00
-

Mobile phones
-
-
$400.00
-
-
Fax Machines
-
-
-
-
-
Internet Access
$360.00
$360.00
$400.00
$400.00
$450.00
Other
Other
Consulting Personnel
-
$180,000
$200,000
$200,000

$200,000
Systems design/maintenance
-
$100,000
$100,000
$110,000
$200,000
Tech/support /help desk
-
$100,000
$200,000
$200,000
$200,000
Other
Total
$3809
$385244
$314049
$529809
$840149
Software Needs
Technology is increasingly becoming part and parcel of almost
every operation in companies today. Worth a mention, without
technology, a company finds itself at a competitive

disadvantage in the increasingly competitive market
environment. Strawberry Rite will begin by using Microsoft
Office Suite to carry out its daily business activities such as
data entry, accounting, creating letters and memos, storage, data
sharing, etc.
Given the rising threat of information security, the company
will employ cloud computing to manage, store, and process
data. Proprietary information such as product source code,
secret formulas, processes, trade secrets, trademarks, and
methods of production will be backed up in the cloud.
The company will also need to keep track of its customers,
generate sales and reports. To do this, it will purchase Bitrix 24
and CRM systems. The company will and must embrace online
marketing but given its limited budgets, it will have to firstly
pursue social media marketing. It will use social platforms such
as Facebook, Twitter, Snapchat and Whatsapp to reach new
customers and to interact with its existing customers. Socal
media marketing is both effective but less costly (Zarrella,
2009). It will create a website where any interested individual
can view wine brand verities and even place orders. However,
as the company grows, it will invest in more advanced software
such as Sailthru, MailChimp, Yesware and also to hire
marketing consulting services.
Hardware Needs
The important hardware equipment includes computers, printers,
external hard drives, network server solutions, wireless routers,
and phones. Just like the land and facility, the computers to be
used have been inherited. The company has an e-fax so it will
not need a physical machine.
Telecommunication Needs
Strawberry Rite Inc. will have office phones in its offices.
However, employees will use their cell phones. The rest of
telecommunication needs will be carried out using email and
fax.
Personnel Needs
As part of its corporate social responsibility, Strawberry Rite

will provide internship and job opportunity for the surrounding
local community. Its staff is small and therefore, many interns
will be accommodated to support growth and expansion.
Consultations services will also be acquired for technical issues
such as marketing, legal, and technology. Noteworthy, these
services will only be sought if need be especially in the second
phase of the company’s growth.
5. Provide a rationale for the personnel needs section by
incorporating appropriate functional-level strategies.
Starting out, Strawberry Rite's staff will be relatively small but
gradually, it will expand the size of its staff to take up the new
duties and responsibilities. With time, the company will need
to operationalize its team and play to their strengths. Labor
will be divided in order to increase efficiency and quality
(Blumberg, 2013). The company's management has strong
operations, marketing, and sales background. The company will
hire per diem while positions such as labelling, cleaning, and
packaging will be taken by interns.
6. Create a management plan for your NAB company using the
template in the text as a guide (p. 248 | Management Plan
preferences.
The management team will comprise of three individuals. The
company owner will be president. Under him, there will be
operations and finance manager. He will also be in charge of all
legal services, research and development. Being a former
operational manager assistant of New Horizons Inc. he has a
strong background in operations, sales, and marketing
management. Other than this, he has also been manager of his
family real estate property. As such, he brings in vast
experience which will be a key benefit to the company.
However, he remained unpaid until the phase of the company
growth, which is a milestone of $1 million per year. In this
phase, he will be entitled to a monthly salary of $75,000 per

annum.
The second person will be the sales manager who will be
responsible for management of the company's sales right from
the beginning. She is also a vastly experienced professional
having worked in a similar position at a reputed insurance
company in the U.S. She will be entitled to an annual salary
totaling $50,000 with bonus options.
The third last management personnel will be production
manager. Just like his colleagues, he has a strong academic and
professional background having worked for an international
clock manufacturer. He brings in a deep production management
knowledge and experience. H will take an annual salary totality
$40,000 starting out.
The three individuals will be the key decision makers for the
company. Each of them will have a team of other professionals
working under them in the various departments such as
customer service, HR, IT, etc.
Using the flow charts on p. 242 as a guide, outline your
company’s management hierarchy. Note: Charts or diagrams
must be imported / included in the MS Word document.
Operations and Finance Manager
1 customer service reps assistants – taking HR and payroll and
order tracking as well
Sales Manager
3 field sales agents
1 marketing design/social media specialist.
Production Manager
8 warehouse crewmembers
2 delivery drivers
Provide a rationale for the management structure and style
section by incorporating appropriate functional-level strategies.
Strawberry Rite has a transparent management style that is
characterized by a laidback office environment. The company
does not have a specified dress code. However, the warehouse

and production department workers must be in the appropriate
dressing as prescribed by law. Its sales agents will also dress
professionally because they are the face of the company in the
outside world. As the company grows, it will new changes will
be made and its HR department will be expanded. In the first
phase of growth, the company will outsource some functions but
it is expected as from phase two, the company will be stable and
self-reliant.
References
Barrington, G. V. (2011). Consulting Start-up and Management:
A Guide for Evaluators and Applied Researchers. Sage.
Blumberg, M. (2013). Startup CEO: A Field Guide to Scaling
Up Your Business,+ Website. John Wiley & Sons.
Ready, K. (2011). Startup: An insider's guide to launching and
running a business. Apress.
Zarrella, D. (2009). The social media marketing book. "
O'Reilly Media, Inc.".
President
Marketting/Sales Manager

Production Manager
Operations and finance manager
Personel Training
Marketting ,Advertsing , Packaging Developement
Production, Research & Development

1
Marketing Budget PlanMarketing Budget
PlanCategoryEstimated
QuantityEstimated
Cost per UnitEstimated
SubtotalResearchResearch firm fees1$350.00$350.00Web
research2$700.00$1,400.00Independent
research1$200.00$200.00Other
research3$75.00$225.00Research Costs
Total$2,175.00CommunicationsPromotional
brochures5,500$0.16$880.00Web-Online
Ads9$220.00$1,980.00Web-Social
Media6$200.00$1,200.00Communications Costs
Total$4,060.00PromotionsProduct
giveaways30$62.00$1,860.00Product
discounts250$4.50$1,125.00Special
offers120$2.75$330.00Promotions Costs
Total$3,315.00AdvertisingBrochures (development and
production)2,500$0.15$375.00Mailings3,000$0.04$120.00Postc
ards2,000$0.02$40.00Billboards4$300.00$1,200.00Bus
sides3$70.00$210.00Advertising Costs Total$1,945.00Public
RelationsCharity
events2$275.00$550.00Advertising3$315.00$945.00Employee
promotions2$170.00$340.00Sponsorships2$100.00$200.00Publi
c Relations Costs Total$2,035.00ESTIMATED MARKETING
GRAND TOTAL$13,530.00
&C&A
&LConfidential & Proprietary&R&8Page &P
Sheet1
How to use this templateHow to use this templateSave the
template (XLT file) to your computer. Double-click on it to
create a new plan, then follow these steps:Step 1Set a starting
point for your projectionsStart date1/3/18Step 2Set-up costsUse

the set-up costs sheet to calculate the cost of setting up your
business.Step 3Profit and loss forecastForecast your month-by-
month profit and loss for the first 12 months of operations.
Enter sales in the month when they're invoiced, rather than the
month when they're paid.Step 4Cash flow forecastForecast your
month-by-month cash flow for the first 12 months of operations.
Enter sales revenue in the month when it's received, rather than
the month when it's invoiced.Step 5Balance sheet
forecastForecast your balance sheet position at the end of the
first 12 months of operation. The balance sheet draws on the
figures you've entered in your profit and loss forecast.Step
6Break-even analysisFind out how many sales you need to make
in the first 12 months to cover your fixed costs and break
even.Tips■Enter figures in any white field. The yellow fields
are calculated for you.■Enter as much or as little information as
you like. The more information you record, the better your
analysis.■By default, the sheets in this template are locked, so
that the formulas cannot be changed. If you are a confident
Excel user, you may wish to unlock a sheet and modify
it.■Please send any feedback or questions to
[email protected]Important informationThe figures shown in
this Financial Forecast spreadsheet are intended as a guide only.
It has been prepared without considering your objectives,
financial situation or needs. Before acting on the calculations in
this spreadsheet, you should consider its appropriateness to your
circumstances. The Commonwealth Bank accepts no
responsibility for any financial loss resulting from the use of
this spreadsheet. We recommend you seek professional advice
before acting on the information or calculations contained in it.
Set-up costsSet-up costsSetting up the businessAccountant's
fees$8,944Solicitor's fees$200Business registration$150Domain
name registration$250Insurance
premiums$1,000Licences$900Workers
compensation$3,000Setting up the premisesLease deposit and
advance rent$500Fitout$0Utility bonds and
connection$0Stationery and office supplies$350Plant and

equipmentEquipment$6,500Vehicles$3,000Telecommunications
$2,000Computers and software$3,500Starting
operationsAdvertising and promotion$850Raw materials and
supplies$3,500Working capital$4,700Start-up capitalEquity
investment$35,000Borrowings$25,000Total$60,000The
resultTotal set-up costs$39,344Surplus
funds$20,656Borrowings required0
Profit and loss forecastProfit and loss
forecastJanFebMarAprMayJunJulAugSepOctNovDecTotalsSales
Sales
(invoiced)$22,500.00$27,000.00$32,400.00$38,880.00$46,656.0
0$55,987.20$67,184.64$80,621.57$96,745.88$116,095.06$139,
314.07$167,176.88$890,561.30Cost of goods
sold$6,750.00$8,100.00$9,720.00$11,664.00$13,996.80$16,796
.16$20,155.39$24,186.47$29,023.76$34,828.52$41,794.22$50,1
53.07$267,168.39Gross
profit$15,750.00$18,900.00$22,680.00$27,216.00$32,659.20$3
9,191.04$47,029.25$56,435.10$67,722.12$81,266.54$97,519.85
$117,023.82$623,392.91ExpensesAccounting
fees$500.00$535.00$572.45$612.52$655.40$701.28$750.37$80
2.89$859.09$919.23$983.58$1,052.43$8,944.23Advertising$85
0.00$892.50$937.13$983.98$1,033.18$1,084.84$1,139.08$1,19
6.04$1,255.84$1,318.63$1,384.56$1,453.79$13,529.56Bank
charges$400.00$420.00$441.00$463.05$486.20$510.51$536.04
$562.84$590.98$620.53$651.56$684.14$6,366.85Bank
interest$200.00$208.00$216.32$224.97$233.97$243.33$253.06$
263.19$273.71$284.66$296.05$307.89$3,005.16Depreciation$3
25.00$325.00$325.00$325.00$325.00$325.00$325.00$325.00$3
25.00$325.00$325.00$325.00$3,900.00Electricity and
gas$700.00$700.00$700.00$700.00$700.00$700.00$700.00$700
.00$700.00$700.00$700.00$700.00$8,400.00Equipment
hire/lease$950.00$950.00$950.00$950.00$950.00$950.00$950.0
0$950.00$950.00$950.00$950.00$950.00$11,400.00Insurance
$1,000.00$1,000.00$1,000.00$1,000.00$1,000.00$1,000.00$1,0
00.00$1,000.00$1,000.00$1,000.00$1,000.00$1,000.00$12,000.
00Legal

fees$450.00$450.00$450.00$450.00$450.00$450.00$450.00$45
0.00$450.00$450.00$450.00$450.00$5,400.00Motor vehicle
expenses
$575.00$615.25$658.32$704.40$753.71$806.47$862.92$923.32
$987.96$1,057.11$1,131.11$1,210.29$10,285.86Postage,
telephone and
fax$350.00$385.00$423.50$465.85$512.44$563.68$620.05$682.
05$750.26$825.28$907.81$998.59$7,484.50Stationery$350.00$
376.25$404.47$434.80$467.41$502.47$540.16$580.67$624.22$
671.03$721.36$775.46$6,448.30Rent$1,100.00$1,100.00$1,100.
00$1,100.00$1,100.00$1,100.00$1,100.00$1,100.00$1,100.00$1
,100.00$1,100.00$1,100.00$13,200.00Repairs and
maintenance$750.00$802.50$858.68$918.78$983.10$1,051.91$
1,125.55$1,204.34$1,288.64$1,378.84$1,475.36$1,578.64$13,4
16.34Security$800.00$800.00$800.00$800.00$800.00$800.00$8
00.00$800.00$800.00$800.00$800.00$800.00$9,600.00Sundries
$900.00$967.50$1,040.06$1,118.07$1,201.92$1,292.07$1,388.9
7$1,493.14$1,605.13$1,725.51$1,854.93$1,994.05$16,581.36Su
perannuation$625.00$625.00$625.00$625.00$625.00$625.00$62
5.00$625.00$625.00$625.00$625.00$625.00$7,500.00Transport/
courier
costs$870.00$904.80$940.99$978.63$1,017.78$1,058.49$1,100.
83$1,144.86$1,190.66$1,238.28$1,287.81$1,339.33$13,072.45
Wages
$3,000.00$3,090.00$3,182.70$3,278.18$3,376.53$3,477.82$3,5
82.16$3,689.62$3,800.31$3,914.32$4,031.75$4,152.70$42,576.
09Workers
compensation$1,250.00$1,287.50$1,326.13$1,365.91$1,406.89$
1,449.09$1,492.57$1,537.34$1,583.46$1,630.97$1,679.90$1,73
0.29$17,740.04$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.0
0Total$15,945.00$16,434.30$16,951.74$17,499.15$18,078.52$1
8,691.96$19,341.74$20,030.30$20,760.25$21,534.41$22,355.77
$23,227.59$230,850.73ResultNet profit-
$195.00$2,465.70$5,728.26$9,716.85$14,580.68$20,499.08$27,
687.51$36,404.80$46,961.86$59,732.13$75,164.07$93,796.23$
392,542.18Gross profit

margin70%70%70%70%70%70%70%70%70%70%70%70%70%
Net profit margin-
1%9%18%25%31%37%41%45%49%51%54%56%44%
Cash flow forecastCash flow
forecastJanFebMarAprMayJunJulAugSepOctNovDecTotalsStarti
ng cash
position$25,000.00$20,505.00$26,778.70$37,043.28$52,169.11
$73,204.56$101,411.93$138,310.46$185,727.98$245,863.01$32
1,359.15$415,394.48IncomingCash
sales$11,250.00$13,500.00$16,200.00$19,440.00$23,328.00$27
,993.60$33,592.32$40,310.78$48,372.94$58,047.53$69,657.03$
83,588.44$445,280.65Collections from accounts
receivable$0.00$9,000.00$10,800.00$12,960.00$15,552.00$18,6
62.40$22,394.88$26,873.86$32,248.63$38,698.35$46,438.02$5
5,725.63$289,353.77Other cash
receipts$200.00$208.00$216.32$224.97$233.97$243.33$253.06
$263.19$273.71$284.66$296.05$307.89$3,005.16Total$11,450.
00$22,708.00$27,216.32$32,624.97$39,113.97$46,899.33$56,2
40.26$67,447.83$80,895.28$97,030.54$116,391.11$139,621.96
$737,639.58OutgoingFixed
costs$6,378.00$6,573.72$6,780.69$6,999.66$7,231.41$7,476.78
$7,736.70$8,012.12$8,304.10$8,613.76$8,942.31$9,291.04$92,
340.29Administration$4,468.00$4,625.72$4,792.37$4,968.55$5,
154.90$5,352.08$5,560.84$5,781.97$6,016.31$6,264.77$6,528.
34$6,808.07Marketing$340.00$357.00$374.85$393.59$413.27$
433.94$455.63$478.41$502.33$527.45$553.82$581.52Operation
s$1,570.00$1,591.00$1,613.47$1,637.51$1,663.24$1,690.77$1,7
20.22$1,751.73$1,785.46$1,821.54$1,860.15$1,901.46Variable
costs$9,567.00$9,860.58$10,171.04$10,499.49$10,847.11$11,2
15.17$11,605.04$12,018.18$12,456.15$12,920.64$13,413.46$1
3,936.55$138,510.44Administration$6,702.00$6,938.58$7,188.5
6$7,452.83$7,732.34$8,028.12$8,341.27$8,672.96$9,024.47$9,
397.16$9,792.51$10,212.10Marketing$510.00$535.50$562.28$5
90.39$619.91$650.90$683.45$717.62$753.50$791.18$830.74$8
72.27Operations$2,355.00$2,386.50$2,420.21$2,456.27$2,494.8
6$2,536.15$2,580.33$2,627.60$2,678.18$2,732.31$2,790.22$2,

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